Air Bank reports a profit of CZK 228 million and continued growth in the first quarter of 2017
05/12/2017
Unaudited results of Air Bank a.s. on a standalone basis as at 31 March 2017 under IFRS:
Air Bank reports a profit of CZK 228 million and continued growth in the first quarter of 2017
Air Bank reports a net profit of CZK 228 million for 1Q 2017. Compared with the same period of 2016 the bank’s profit went up by 543%. This significant year-on-year change was mainly due to the re-measurement of investments to fair value, which was reflected as a drop in the bank’s profit last year because of the market situation, causing the profit to increase this year. In addition, the bank was also successful in attracting rapidly increasing numbers of clients and in growing the volume of loans provided.
“Market fluctuations impacting on profit is quite normal for a bank of our size and orientation. What is significant is the fact that we have been profitable for the fourth year in a row and are continuously increasing our income from everyday retail banking, enabling us to continue investing in new services for our clients,” says Michal Strcula, Air Bank’s Chief Executive Officer.
Air Bank continues to invest in its ATM rollout. Last year, it was the first bank in the Czech Republic to introduce contactless cash withdrawals and deployed as many as 177 ATMs at the end of March. In March, Air Bank also launched travel insurance through a mobile application and it is planning additional new services for the rest of this year.
At the end of March, Air Bank’s services were already used by more than 536,000 clients a 19% increase year on year. The volume of deposits in clients’ current and savings accounts grew by 11% to CZK 80.1 billion. The total volume of loans in Air Bank’s portfolio increased by 21% to CZK 33.4 billion.
As at the end of 1Q 2017, Air Bank’s total assets rose by 11% to CZK 87.6 billion year on year. The bank’s equity increased by 3% to CZK 5.1 billion.
| 31 March 2016 | 31 March 2017 | YoY change | |
|---|---|---|---|
| Net profit | CZK 35.5 m | CZK 228.0 m | 543% |
| NBI net of credit losses | CZK 349.8 m | CZK 574.9 m | 64% |
| Administrative and overhead costs | (CZK 293.2 m) | (CZK 294.8 m) | 1% |
| Number of clients | 452,110 | 536,388 | 19% |
| Volume of deposits | CZK 71.9 bn | CZK 80.1 bn | 11% |
| Volume of loans | CZK 27.5 bn | CZK 33.4 bn | 21% |
| Total assets | CZK 79.2 bn | CZK 87.6 bn | 11% |
| Equity | CZK 5.0 bn | CZK 5.1 bn | 3% |
| Number of employees | 713 | 747 | 5% |
| Number of branches | 33 | 34 | +1 |
| Number of ATMs | 79 | 177 | +98 |