| Net profit: | CZK 640 million | Securities trading volume: | CZK 172 billion |
|---|---|---|---|
| Capital ratio: | 21,0 % | Operating income: | CZK 1,6 billion |
| Total assets: | CZK 273 billion | Net interest income: | CZK 1,3 billion |
PPF banka’s net profit in the first quarter of 2022 was CZK 640 million, up 36% in the same period last year. Despite a time of geopolitical tension following Russia’s invasion of Ukraine, the Bank continued its track record of success enjoyed in previous years. Its net profit in the last calendar year rose by 50% year-on-year to CZK 1.747 billion.
Vigorous pursuit of business opportunities translated into greater balance sheet performance compared to the same period last year. Interest income more than doubled to CZK 1.3 billion on the back of the Bank’s volume of assets and progressive hikes in interest rates in the first quarter of 2022. As in the previous year, PPF banka’s trading in interest-rate and monetary instruments also prospered, generating a net trading profit of over CZK 200 million and partly as a result of the successful approach it took to business on capital markets. In the first quarter of 2022, the Bank made provisions for almost CZK 450 million while it proceeded very cautiously amid the implications of Russia’s aggression towards Ukraine in the broader economic situation in Europe.
PPF banka is one of the largest and most successful traders on financial markets in the Czech Republic. In the reporting period, it traded in securities to the tune of more than CZK 172 billion, with domestic government bonds accounting for CZK 149 billion. As at 31 March 2022, PPF banka was ranked the second largest primary sovereign debt dealer in a list regularly published by the Czech Ministry of Finance. This result cements the Bank’s long-running position as a top-three primary dealer in government bonds.
PPF banka continued its involvement in growth activities on the bond market in the Czech Republic, including corporate bonds issuance, while the domestic economy picked up after its two-year downturn.
In customer services, PPF banka is actively developing a new mobile application and has frequently applied enhancements to its internet banking experience. Several innovations have resulted in a much better user experience and flexible response to growing user demands, including improvements in cybersecurity.
PPF banka’s balance-sheet total in the first quarter was CZK 273 billion, comfortably above the level reported for the pre-COVID year of 2019. Its capital ratio of more than 20% is well above the regulatory threshold. PPF banka’s liquidity is also at a very healthy and stable level, with an LCR reported at 138% in the first quarter of this year.
Commenting on the Bank’s results and performance in the first quarter of 2022, Chairman and CEO of PPF banka Petr Jirásko remarked: “Since the beginning of the year, we have maintained positive momentum in our key economic indicators while maintaining robust loan loss provisions. This leaves us well positioned to manage the global economic legacy of the war in Ukraine. Concerning PPF banka’s direct exposure to Russia, this accounts for just 0.18% of the overall balance-sheet total and takes the form of a standard portfolio of corporate bonds.”
“As a core part of PPF Group, the Bank also facilitates opportunities for clients to participate in the Group’s business. Drawing on various debt securities, last year alone we brokered investment opportunities worth more than CZK 4 billion,” said the PPF banka chairman and CEO.
“In addition to our long-term work with The Kellner Family Foundation and PPF Foundation, the Bank and its colleagues from PPF Group are helping Ukrainian refugees in the Czech Republic,” said Petr Jirásko, “Corporate social responsibility is an integral part of PPF banka’s operations and a pillar of its ESG sustainability strategy.”
| Financial metrics – Q1 2022: | ||
|---|---|---|
|
Assets (in CZK millions) |
Q1 2022 |
Q1 2021 |
|
Cash and cash equivalents |
147,171 |
109,752 |
|
Financial assets measured at fair value through profit or loss |
34,348 |
18,433 |
|
Financial assets measured at fair value through other comprehensive income |
34,575 |
20,625 |
|
Financial assets measured at amortised cost |
1,312 |
0 |
|
Receivables from banks |
12,909 |
10,885 |
|
Receivables from customers |
41,258 |
48,230 |
|
Investments in subsidiaries |
237 |
237 |
|
Other assets |
1,158 |
1,001 |
|
Total assets |
272,968 |
209,163 |
|
Equity and liabilities (in CZK millions) |
Q1 2022 |
Q1 2021 |
|
Deposits from banks |
38,521 |
18,117 |
|
Deposits from customers |
182,366 |
158,886 |
|
Debt securities issued |
4,253 |
3,610 |
|
Financial liabilities measured at fair value through profit or loss |
29,854 |
11,828 |
|
Other liabilities |
1,409 |
1,151 |
|
Registered capital |
769 |
769 |
|
Other components of equity |
15,796 |
14,802 |
|
Total liabilities and shareholders’ equity |
272,968 |
209,163 |
|
Income statement (in CZK millions) |
Q1 2022 |
Q1 2021 |
|
Net interest income |
1,304 |
586 |
|
Net fee and commission income |
40 |
38 |
|
Net gain on trading and dividend income |
207 |
237 |
|
General administrative expenses |
(224) |
(217) |
|
Impairment losses |
(444) |
41 |
|
Other operating profit or loss |
(94) |
(104) |
|
Income tax expense |
(149) |
(109) |
|
Profit or loss for the year |
640 |
472 |
| Financial metrics – 2021: | ||
|---|---|---|
|
Assets (in CZK millions) |
FY 2021 |
FY 2020 |
|
Cash and cash equivalents |
127,050 |
90,096 |
|
Financial assets measured at fair value through profit or loss |
36,813 |
19,291 |
|
Financial assets measured at fair value through other comprehensive income |
22,894 |
19,314 |
|
Receivables from banks |
5,227 |
4,130 |
|
Receivables from customers |
43,351 |
35,745 |
|
Investments in subsidiaries |
237 |
237 |
|
Other assets |
1,050 |
910 |
|
Total assets |
236,622 |
169,723 |
|
Equity and liabilities (in CZK millions) |
FY 2021 |
FY 2020 |
|
Deposits from banks |
41,333 |
1,933 |
|
Deposits from customers |
145,548 |
131,462 |
|
Debt securities issued |
4,411 |
3,122 |
|
Financial liabilities measured at fair value through profit or loss |
27,632 |
16,710 |
|
Other liabilities |
1,156 |
1,082 |
|
Registered capital |
769 |
769 |
|
Other components of equity |
15,773 |
14,645 |
|
Total liabilities and shareholders’ equity |
236,622 |
169,723 |
|
Income statement (in CZK millions) |
FY 2021 |
FY 2020 |
|
Net interest income |
2,827 |
3,292 |
|
Net fee and commission income |
224 |
209 |
|
Net gain on trading and dividend income |
252 |
759 |
|
General administrative expenses |
(954) |
(817) |
|
Impairment losses |
187 |
(1,750) |
|
Other operating profit or loss |
(409) |
(382) |
|
Income tax expense |
(380) |
(178) |
|
Profit or loss for the year |
1,747 |
1,133 |
