Air Bank reports first half profit of CZK 40 million; number of clients rises to 475,000
Unaudited results of Air Bank a.s. on a standalone basis as at 30 June 2016 according to IFRS:
Air Bank continued its profitable performance in the first half of this year, reporting net profit of CZK 39.9 million for the six months to 30 June 2016. Air Bank continued to grow at a fast pace and had almost 475,000 clients at the end of June 2016. The bank’s profit was lower compared to 2015, mainly due to the market’s re-pricing of investments. Last year this factor helped Air Bank to achieve an unexpectedly high profit, however this year it has caused a drop in profits because of the uncertainty in European markets. Nevertheless, profitable results for the third year running mean Air Bank is in a position to continue investment in its development.
“We are delighted to see that the number of our clients and their demand for our services continue to increase at a fast pace, and we are proud of our profitable performance for the third year in a row. This makes it possible for us to continue to invest massively in the development of new services and in the expansion of our ATM network”, Michal Strcula, Air Bank CEO, commented on the bank’s 1H results.
In recent months, Air Bank launched Šanon (Folder) - a brand new service in the Czech Republic, which makes it easier for people to pay bills. It has also invested in extending its branch and ATM networks. Over the last 12 months, Air Bank has built eight new branches and installed thirty new ATMs.
This fuelled strong growth in the number of Air Bank’s customers, which increased 30% year on year to 474,761 at the end of June 2016. Customer deposits in current and savings accounts rose 21% year on year to CZK 74.2 billion. Total loans in the bank’s portfolio increased 12% to CZK 28.6 billion. Consumer loans were growing at the fastest rate again, as well as mortgage loans, which Air Bank started to refinance last year.
Air Bank’s total assets rose 20% year on year to CZK 81.6 billion, while its equity increased 3% to CZK 5 billion.
|30 June 2015||30 June 2016||Y-o-Y change|
|Net profit||CZK 350.4 m||CZK 39.9 m||-89%|
|Number of clients||366,163||474,761||30%|
|Number of current accounts||331,899||469,277||41%|
|Number of savings accounts||245,418||315,359||28%|
|Volume of deposits||CZK 61.4 bn||CZK 74.2 bn||21%|
|Volume of loans||CZK 25.5 bn||CZK 28.6 bn||12%|
|Total assets||CZK 67.9 bn||CZK 81.6 bn||20%|
|Equity||CZK 4.8 bn||CZK 5.0 bn||3%|
|Number of employees||646||719||11%|
|Number of branches||26||34||+8|
|Number of ATMs||57||87||+30|