PPF banka generated net income of CZK 294.4 million in accordance with Czech Accounting Standards in 2005. For the same period, the bank reported pretax income of CZK 340.0 million. Income from the bank’s financial activities totalled CZK 264.0 million, a 555% increase year-on-year, while net profit from subsidiaries stood at CZK 76.0 million.
Compared to year-end 2004, PPF banka’s total assets increased 64% year-on-year to CZK 20.9 billion as of year-end 2005. The volume of client deposits and depository notes reached CZK 17.3 billion, a 58% increase compared to 2004. PPF banka’s own business activities generated CZK 900.9 million in revenues in 2005, up 36% year-on-year.
PPF banka’s dynamic growth continued also in the area of loans granted to corporate and municipal clients. The bank’s loan portfolio increased to CZK 7.8 billion as of 31 December 2005, which represents a 64% increase compared with 2004. At the year-end 2005, the bank’s classified loans stood at CZK 229.0 million, or less than 3% of its gross loan portfolio. All classified loans were in the ‘watch’ category and loan loss reserves stood at CZK 10.2 million as of year-end 2005.
“Our 2005 profit was supported by increased business activities in the financial and capital markets, as well as growth in lending activities to corporate clients,” says Petr Milev, Chairman and CEO of PPF banka.
PPF banka’s risk-weighted capital adequacy ratio stood at 19.04% as of year-end 2005. The bank’s return on average equity increased to 24.56% at the end of 2005, up from 9.49% in 2004.
PPF banka is a member of PPF Group, an international financial group with assets worth approximately CZK 200 billion under management. The Group includes Česká pojišťovna, Penzijní fond ČP, Home Credit, eBanka and companies specialized in complex asset management services. PPF Group is active in the Central and Eastern Europe region, Russia and Kazakhstan.