PPF Bank set to reach a record profit in 2009
01/22/2010
“We expect 2009 to follow the success of 2007 and 2008 and our profit after tax to hit a record level of more than CZK 800 million, exceeding 2008’s profit of CZK 543 million by CZK 250 million. Recently we adjusted our corporate strategy to reflect our desire to maximise shareholders´ returns. In addition to today’s strong financial results, our loan portfolio is very sound. We believe this sends a positive message to our shareholders, partners and clients in the current difficult economic climate.”
Petr Milev, Chief Executive Officer
Highlights
- Anticipated profit after tax of more than CZK 800 million for the year ending 31 December 2009, compared to the corresponding period of 2008, when the Bank posted net profits of CZK 543 million.
- Preliminary income from own activities amounted to CZK 1,475 million for FY2009, compared with CZK 951 million for FY2008.
- Profit from financial operations amounted to CZK 532 million for FY2009 compared with CZK 138 million in 2008.
- Total assets are expected to reach CZK 43 billion as at 31 December 2009.
Financial Results
PPF banka expects to reach a profit after tax of CZK 800 million for the full year ended 31 December 2009. This represents an increase of 49% against the same period for 2008, when the Bank posted profits after tax of CZK 543 million. The increase was driven primarily by profits from financial operations, which have increased from CZK 400 million to CZK 532 million in the period under review. These are preliminary results and the audited results are expected to be announced in March 2010.
Due to the prolonged economic and financial crisis, the Bank has focused on the quality of its interest-bearing portfolio; the income derived from commissions and fees and on new activities in the retail loan business. The volume of bad debts (classified as loans overdue for more than 90 days) is expected to be lower than 0.5%. These results were supported by the anticipated growth of risk-free earnings emanating from income recieved from commissions and fees of more than 47% (CZK 283 million vs. CZK 192 million). The volume of loans provided to clients increased by 53% year on year to CZK 13.5 billion as at 31 December 2009 (CZK 8.8 billion at the end of 2008). This increase can be attributed primarily to the new activities undertaken by the bank.
The Bank’s total assets as at 31 December 2009 are expected to remain unchanged from 2008 at around CZK 43.2 billion. Return on equity (ROE) and cost/income ratio (CIR) are expected to be better than average at approximately 30% and 40% respectively.
PPF banka a.s. is part of PPF Group, a leading international investment group. PPF Group N.V. holds a 92.96% stake and the City of Prague 6.7% in the bank.
|
CZK million
|
31 Dec 2008
|
31 Dec 2009
expected |
Year-on-year
change |
|
Profit before tax
|
571
|
1,013
|
77%
|
|
Profit after tax
|
543
|
810
|
49%
|
|
Profit from financial operations
|
138
|
532
|
286%
|
|
Total assets
|
44,710
|
43,209
|
-3%
|
|
Total equity
|
2,674
|
3,517
|
32%
|