Air Bank reports CZK 244 million profit for 2016 and over 90,000 new clients
Unaudited results of Air Bank a.s. on a standalone basis as at 31 December 2016 under IFRS:
In 2016, Air Bank achieved a positive result for the third consecutive year with net profit of CZK 244 million for 2016. Net profit declined 47% versus 2015, partly due to continuing low interest rates on the market, but mainly due to the bank’s significant capital expenditure on its state-of-the-art ATM rollout programme. In 2016 alone, Air Bank more than doubled the number of its ATMs, and thanks to this acquired more than 90,000 new clients.
“Our positive result allows us to continue to invest massively in new services. A more extensive network of ATMs has long been one of the most frequent wishes of our clients, and we have therefore been expanding it considerably. We are planning further large investments in this ATM network expansion this year too,” said Michal Strcula, Air Bank’s Chief Executive Officer.
Air Bank’s massive investment in continued ATM rollout was reflected in the growth of its administrative and overhead costs, which rose 9% to CZK 1.2 billion. Due to the low market rates and subsequent decrease in suitable opportunities for deposit placement, NBI net of credit losses declined 7% to CZK 1.5 billion.
The greater number of ATMs and additional new services continued to attract new customers to Air Bank. Customer numbers rose 22% to 515,000 year on year. The volume of deposits in clients’ current and savings accounts grew 14% to CZK 78.9 billion. The total volume of loans in Air Bank’s portfolio increased 21% to CZK 32.6 billion.
Air Bank’s total assets at the end of 2016 rose 14% year on year to CZK 86.8 billion. The bank’s equity increased 3% to CZK 5.4 billion.
|31 December 2016||31 December 2015||YoY change|
|Net profit||CZK 244.3 m||CZK 458.9 m||-47%|
|NBI net of credit losses||CZK 1.5 bn||CZK 1.6 bn||-7%|
|Administrative and overhead costs||(CZK 1.2 bn)||(CZK 1.1 bn)||9%|
|Number of clients||515,192||424,024||22%|
|Number of current accounts||522,863||410,087||28%|
|Number of savings accounts||337,841||283,965||19%|
|Volume of deposits||CZK 78.9 bn||CZK 69.4 bn||14%|
|Volume of loans||CZK 32.6 bn||CZK 27.0 bn||21%|
|Total assets||CZK 86.8 bn||CZK 76.4 bn||14%|
|Equity||CZK 5.4 bn||CZK 5.2 bn||3%|
|Number of employees||730||681||7%|
|Number of branches||34||31||+3|
|Number of ATMs||152||72||+80|