PPF banka a.s. (“PPF banka”), a subsidiary of PPF Group N.V., today announces its financial results for the period ended 31 December 2008, pursuant to Czech Accounting Standards (CAS).
“In 2008 we surpassed 2007’s record-breaking profit after tax. This demonstrates that our strategy has enabled the bank to achieve record results even during the ongoing financial and economic crisis. We are especially pleased with the increase in PPF banka’s total assets, which is testament to the confidence our clients have placed in our services in a period that has been, and remains, very challenging.”
Petr Milev, Chief Executive Officer
PPF banka’s total assets grow from CZK 27.4 billion in 2007 to CZK 44.7 billion as of 31 December 2008, a 63% year-on-year increase.
Net profit for the year ended 31 December 2008 is CZK 543.3 million (2007: CZK 528.8 million), a 3% year-on-year increase.
An 11.6% growth of profit before tax and provisions: from CZK 692.9 million in 2007 to CZK 773.1 million in 2008.
Continued growth of revenues from core businesses to CZK 2,131.3 million (2007: CZK 1,932.8 million) resulting from a marked increase of interest earnings.
Increase in the rate of classified credit to total client credit, from 1% in 2007 to 7% in 2008, based on the bank’s conservative credit strategy.
PPF banka’s overall performance in 2008 was affected by the challenging conditions across the world’s financial markets. To counter this, PPF banka pursued a strategy whereby it provided tailored financial solutions to financial institutions and selected commercial and municipal clients. The bank’s total assets grew from CZK 27.4 billion in 2007 to CZK 44.7 billion at the end of December 2008, a 63% year-on-year increase. Total liabilities to clients grew 67%, increasing from CZK 20.9 billion in 2007 to CZK 34.9 billion on 31 December 2008.
The volume of credit provided to clients grew year-on-year from CZK 7.6 billion to CZK 8.8 billion. Net interest earnings and the sale of Burza cenných papírů Praha shares were key factors in compensating for the reduction of net earnings in other segments, such as capital markets trading and earnings from fees.
An mphasis on conservative risk management - a strategy undertaken due to the financial and economic crisis - resulted in provisions of CZK 204.9 million in 2008. The ratio of classified credit to total client credit grew from 0.93% on 31 December 2007 to 7.28% on 31 December 2008 and the ratio of total bad debts accounted for just 1.2% of the volume of all client credit.
PPF banka posted a net profit of CZK 543.3 million on 31 December 2008, 3% more than the CZK 528.8 million posted in 2007. We have attributed this increase to:
A 32% year-on-year increase of net interest earnings to CZK 1,104.7 million;
A 27.5% year-on-year decrease of profit from financial operations to CZK 139 million.
PPF banka compiles and publishes its financial results in accordance with Czech accounting standards (CAS) and International Financial Reporting Standards (IFRS). Financial results under CAS may differ from financial results under IFRS. PPF banka’s financial results under IFRS will be published in the customary manner and then made available at PPF banka’s website at www.ppfbanka.cz.
We are using cookies on our website to ensure that you will receive the best experience while using our website. These cookies might relate to your information, your preferences or your device. The information does however not usually directly identify you, but it could provide you with a more personalized and better web experience. Since we do respect your privacy, you can choose to not allow some type of cookies. For more information on the types of cookies and the possibility to change the default cookies setting, click on the heading of the individual types of cookies. Blocking some types of cookies may impact your user experience on our website. For further information on how we process your personal data (cookies) please click on the section "More information about cookies”.
It is necessary to create a cookie to remember the choices you have made within our cookie privacy menu as well. This is going to have a couple of consequences:
Strictly necessary (technical) cookies are necessary for the functioning of our website and can therefore not be switched off in our systems. These cookies do not [collect or] store any personal identifiable information. They are usually a response to your actions and related to a request for services such as setting your privacy preferences, logging in or filling in the forms.
These cookies allow us to count the visits and the traffic sources on our website so that we can measure and improve the performance of our website. The performance cookies are supposed to help us to understand which sections of our website are the most and least popular and show how visitors move around the website. All the information that these cookies collect are aggregated and therefore anonymous. If you prefer to not allow these cookies, we will not be aware of when you have visited our website and we will not be able to monitor the performance of the website.
Functional cookies enable the website to provide you with enhanced functionality and personalization. These cookies are set by external administrator - to protect user data from unauthorized access. If you do not allow these cookies, then some or all of these services may not function properly.