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28/04/2011 2010 result places PPF Bank among the Czech Republic's medium-sized banks

PPF banka’s total assets rose by 21% year on year to CZK 52.4 billion (as at 31 December 2010).

“After recording our most profitable year ever in 2009, we went on to achieve the second best result in terms of profit in the bank’s existence in 2010. Our organic growth throughout 2010 gave rise to total assets of CZK 52.4 billion, promoting the bank to the medium-size category in the Czech Republic. The ongoing crisis reassured us that the diversification of business operations was of immense benefit to the bank. Besides the sound results, we note that the credit portfolio also proved itself to be in rude health. In the difficult conditions of the economic crisis, this is good news for shareholders, partners and clients alike.”
Petr Milev, Chief Executive Officer

Summary
Total assets grew year on year by 21% to CZK 52.4 billion at 31 December 2010.
The audited profit after tax for the period ended 31 December 2010 came to CZK 660 million.
Revenue from own activities amounted to CZK 1.256 billion in 2010.
The volume of classified loans contracted from 10.3% to 5.4%.
The bank’s equity (100% Tier 1) exceeded CZK 4 billion.


Financial Results
PPF banka’s audited profit after tax as at 31 December 2010 amounted to CZK 660 million, which, although a 19% decline compared to the net profit reported in 2009, is still a 22% rise on 2008. The primary profit stabilizers were the increase in net income from commissions and fees (up CZK 75 million year on year) and the reversal of provisions for the loan portfolio amounting to CZK 6.5 million, which delivered a year-on-year improvement by approximately CZK 216 million.
In view of the continuing effects of the economic crisis, the bank focused on the quality of the loan portfolio, income from commissions and fees, and activities in the field of retail claims. It started offering SME financial services under the brand name “Private Businesses”. The volume of classified loans contracted year on year from 10.3% to 5.4%. The rise in risk-free revenues, including net fees and commissions (CZK 218 million versus CZK 143 million), was a major boost to the bank’s result. The volume of loans granted to clients grew by 38% to CZK 18.7 billion as at 31 December 2010, up from CZK 13.5 billion at year-end 2009, mainly as a result of new operations.

Total assets increased by a significant 21% to CZK 52.4 billion at 31 December 2010. ROE and CIR were a solid 20% and 37% respectively.

PPF banka is part of the PPF international investment group. PPF Group N.V. holds a 92.96% stake in the bank; a further 6.7% is held by the City of Prague.

Highlights

(CZK millions) 31/12/2009 31/12/2010 YoY change
Profit before tax 1 036 804 -22%
Profit after tax 811 660 -19%
Profit on financial operations 531 141 -73%
Total assets 43,256 52,361 21%
Total equity 3 513 4 170 19%


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