PPF banka’s net profit in the first quarter of 2022 was CZK 640 million, up 36% in the same period last year. Despite a time of geopolitical tension following Russia’s invasion of Ukraine, the Bank continued its track record of success enjoyed in previous years. Its net profit in the last calendar year rose by 50% year-on-year to CZK 1.747 billion.
Vigorous pursuit of business opportunities translated into greater balance sheet performance compared to the same period last year. Interest income more than doubled to CZK 1.3 billion on the back of the Bank’s volume of assets and progressive hikes in interest rates in the first quarter of 2022. As in the previous year, PPF banka’s trading in interest-rate and monetary instruments also prospered, generating a net trading profit of over CZK 200 million and partly as a result of the successful approach it took to business on capital markets. In the first quarter of 2022, the Bank made provisions for almost CZK 450 million while it proceeded very cautiously amid the implications of Russia’s aggression towards Ukraine in the broader economic situation in Europe.
PPF banka is one of the largest and most successful traders on financial markets in the Czech Republic. In the reporting period, it traded in securities to the tune of more than CZK 172 billion, with domestic government bonds accounting for CZK 149 billion. As at 31 March 2022, PPF banka was ranked the second largest primary sovereign debt dealer in a list regularly published by the Czech Ministry of Finance. This result cements the Bank’s long-running position as a top-three primary dealer in government bonds.
PPF banka continued its involvement in growth activities on the bond market in the Czech Republic, including corporate bonds issuance, while the domestic economy picked up after its two-year downturn.
In customer services, PPF banka is actively developing a new mobile application and has frequently applied enhancements to its internet banking experience. Several innovations have resulted in a much better user experience and flexible response to growing user demands, including improvements in cybersecurity.
PPF banka’s balance-sheet total in the first quarter was CZK 273 billion, comfortably above the level reported for the pre-COVID year of 2019. Its capital ratio of more than 20% is well above the regulatory threshold. PPF banka’s liquidity is also at a very healthy and stable level, with an LCR reported at 138% in the first quarter of this year.
Commenting on the Bank’s results and performance in the first quarter of 2022, Chairman and CEO of PPF banka Petr Jirásko remarked: “Since the beginning of the year, we have maintained positive momentum in our key economic indicators while maintaining robust loan loss provisions. This leaves us well positioned to manage the global economic legacy of the war in Ukraine. Concerning PPF banka’s direct exposure to Russia, this accounts for just 0.18% of the overall balance-sheet total and takes the form of a standard portfolio of corporate bonds.”
“As a core part of PPF Group, the Bank also facilitates opportunities for clients to participate in the Group’s business. Drawing on various debt securities, last year alone we brokered investment opportunities worth more than CZK 4 billion,” said the PPF banka chairman and CEO.
“In addition to our long-term work with The Kellner Family Foundation and PPF Foundation, the Bank and its colleagues from PPF Group are helping Ukrainian refugees in the Czech Republic,” said Petr Jirásko, “Corporate social responsibility is an integral part of PPF banka’s operations and a pillar of its ESG sustainability strategy.”
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.