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.