“In the first half of 2015, PPF banka generated its best performance ever as its net profit rose by nearly 60% year on year to CZK 826 million. This result is mainly due to growing profits from securities trading and the improving risk profile of its portfolio”, Petr Jirásko, CEO of PPF banka a.s., commented.
Key ratios for the first six months of 2015:
Net profit after tax was CZK 826 million, a CZK 302 million (58%) increase compared to the same period last year.
Total assets as at 30 June 2015 slightly declined to CZK 105 billion (-3%) compared to the end of 2014.
Loans to customers stood at CZK 30 billion for the period and deposits exceeded CZK 74 billion.
PPF banka was able to generate a record-breaking net profit despite the environment of extremely low interest rates and tough competition in the Czech banking market, which drove down both interest margins and net interest income. Profit from financial operations (CZK 314 million compared to a loss of CZK 69 million at half-year 2014) was the main factor for this increase in profit. Release of provisions also contributed on a positive basis.
During the first half period of 2015, PPF banka also reinforced its capital position. Capital adequacy rose by 2.3 pp reaching 17.05%. Not only does this level give PPF banka a strong capital cushion; it is significantly above minimum regulatory requirements.
Return on average equity (ROAE) rose by 27.4% in the first half of 2015, a performance significantly above the market average. Return on total assets also rose markedly.
In the first half of the year, the Bank’s efficiency as measured by the cost/income ratio, also improved, reducing to 27.9% from 35% in the first half of 2014.