Prague, 31 March 2008: PPF banka a.s. (“PPF banka”), commercial bank owned from 92.96% by PPF Group N.V. announces its financial results for the year ended 31 December 2007 in accordance with Czech Accounting Standards (CAS).
“A record profit after tax of nearly CZK 530 million reflects our successful delivering on the strategy to provide “tailor made” solutions of commercial and investment banking. Our main profit driver for 2007 was profit from financial operations, which increased despite turmoil on the international financial markets.”
Petr Milev, Chief Executive Officer
Net profit for the year ended 31 December 2007 of CZK 528.8 million (2006: CZK 281.1 million) – an increase of 88%.
120% increase in profit from own business activities from CZK 314.6 million for the year 2006 to CZK 692.5 million for 2007.
Continued growth in gross operating income to CZK 1,932.8 million (2006: CZK 1,409.5 million) attributed to strong growth in interest income and profit from financial operations.
Increase in the PPF banka’s balance sheet from CZK 24.5 billion in 2006 to CZK 27.4 billion at the end of December 2007 (12% increase y-o-y).
Decrease in classified loans expressed as a share on overall clients’ loans to less than 1%.
The overall business of PPF banka has not been effected by turmoil on the international financial markets in 2007. PPF banka has continued in its strategy to provide “tailor made” financial solutions for financial institutions, municipal and corporate clients, including PPF Group companies. The overall due to customers increased of 13% from CZK 18.5 billion in 2006 to CZK 20.9 billion as of 31 December 2007.
Despite 19% decrease in loans granted to CZK 7.6 billion (2006: 9.4 billion), PPF banka has fully offset the decline by increase in interest margin and profit from financial operations derived from the trading on financial and capital markets.
PPF banka’s continuing focus in risk management produced positive results with a decrease in classified loans expressed as a share on overall clients’ loans to 0.93% as of 31 December 2007 from 1.71% as of 31 December 2006.
PPF banka reported the net profit as of 31 December 2007 of CZK 528.8 million compared to CZK 281.1 million for the year ended 31 December 2006, an increase of 88%. The main drivers of this profitable growth were following:
net interest income increased significantly to CZK 835 million, representing an increase of 59% year on year;
the profit from financial operations increased to CZK 191 million, representing an increase of 672% year on year respectively;
PPF banka maintained its administrative expenses under control, reporting only modest 0.4% increase year on year.
PPF banka prepared and regularly presents its financial results in accordance with Czech Accounting Standards (CAS) and International Financial Reporting Standards (IFRS). Financial results in accordance with CAS may differ from numbers in its financial statements according to the IFRS. The financial statements according to the IFRS will be released in a normal fashion and will be subsequently available on the PPF banka’s website 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.