Air Bank announces 9M profit of CZK 216.6 million; invests in more ATMs
Unaudited results of Air Bank a.s. on a standalone basis as at 30 September 2016 under IFRS:
Air Bank reports a net profit of CZK 216.6 million for the first nine months of 2016. The rapid growth in the number of clients, and in the volume of consumer loans provided, has enabled the bank to continue improving its revenues from retail activities. The bank’s total profit declined year on year, mainly due to the low interest rates available on the market, which have been limiting suitable opportunities for placing deposits.
“The profitability of our operations has allowed us to invest massively in new services for the benefit of our customers. This year’s net result has been further impacted by these increased costs, such as those related to our decision to expand our ATM network, as we endeavour to respond to our customers’ needs”, Michal Strcula, Air Bank’s Chief Executive Officer, commented on the results.
Air Bank nearly doubled the number of its ATMs over the past twelve months to 117, and that number will continue to grow. In addition to the new ATMs, Air Bank also opened five new branches, and at the beginning of September, Air Bank became the first bank in the Czech Republic to launch contactless ATM withdrawals.
As Air Bank continued to offer new and innovative services, its client base rose 25% year on year to 495,000 at the end of September 2016. The volume of client deposits increased 18% year on year to CZK 75.8 billion. The total volume of loans in the bank’s portfolio went up 12% to CZK 30 billion. Once again, consumer loans grew the most rapidly: in the first three quarters of this year Air Bank provided 41% more loans than in the same period last year.
Air Bank’s total assets rose 16% year on year to CZK 83.4 billion. The bank’s equity increased 2% to CZK 5.3 billion.
|30 September 2015||30 September 2016||YoY change|
|Net profit||CZK 487.4 m||CZK 216.6 m||-56%|
|Number of clients||394,880||495,459||25%|
|Number of current accounts||372,650||495,284||33%|
|Number of savings accounts||264,639||326,665||23%|
|Volume of deposits||CZK 64.2 bn||CZK 75.8 bn||18%|
|Volume of loans||CZK 26.9 bn||CZK 30.0 bn||12%|
|Total assets||CZK 72.1 bn||CZK 83.4 bn||16%|
|Equity||CZK 5.2 bn||CZK 5.3 bn||2%|
|Number of employees||662||709||7%|
|Number of branches||29||34||+5|
|Number of ATMs||63||117||+54|