PPF banka posted robust results in the first half of 2022, reflecting 2021’s low base effect – a year adversely affected by the fallout from anti-pandemic measures and the Czech National Bank’s extremely low interest rates – followed by a turnaround this year, in which base interest rates have been hiked and the balance sheet has ballooned to drive up PPF banka’s net interest income.
“Since the beginning of the year, business at PPF banka and the entire financial sector in the Czech Republic has been shaped by the fast-changing macroeconomic situation, which has been characterised especially by a combination of high inflation and rising interest rates. While the Czech economy is highly sensitive to external factors, most of which are currently negative, numerous internal factors, notably trends in industry, construction and services, allow for a certain degree of optimism when it comes to prospects down the road,” said PPF banka analyst Ľuboš Mokráš.
The bank saw its net profit climb CZK 473 million year-on-year to CZK 1.410 billion. PPF banka’s balance sheet total was just shy of CZK 278 billion in the first half of the year.
PPF banka has long been one of the largest and most successful traders on the domestic capital market. In the first half of this year, the bank’s securities trading volume totalled CZK 349.1 billion. PPF banka is firmly positioned among the top-ranked primary dealers in terms of sovereign debt. The rankings are regularly announced by the Czech Ministry of Finance, and PPF banka has consistently shown that is able to hold its own in the face of competition from large foreign and Czech financial institutions. In the period under review (Q3 2021 to Q2 2022), PPF banka placed second in the MoF rankings behind KBC Bank Group, which includes the domestic ČSOB.
In the first half of the year, PPF banka successfully completed the payment of consideration to O2 Czech Republic’s minority shareholders. This was the largest settlement by volume that PPF banka has undertaken to date.
PPF banka, in partnership with EMUN PARTNERS family office and KPMG Česká republika, continued to hold Investment Breakfasts for investors and anyone interested in what is happening in the economy and capital markets. The April meeting discussed the CZK exchange rate. The next Investment Breakfast, scheduled for October 2022, will look at investment at a time when most major central banks are adopting tougher monetary conditions.
PPF banka is in the process of phasing in sustainability (or ESG) principles into its operations. One of the projects the bank is involved in is Giving Cards a New Life (which reuses the waste produced from old payment cards).
Commenting on the bank’s results and operations in the first half of 2022, Petr Jirásko, PPF banka’s chairman and CEO, remarked that “We have built on the success reported at the beginning of the year and kept up the positive momentum of our key economic indicators. I am keen to draw attention to the substantial growth in our net profit alongside sound levels of capital and liquidity. This means that we remain well and safely positioned to weather the turbulence which has largely been whipped up by changes in the external landscape.”
“The macroeconomic situation as it stands is broadly encouraging for the financial sector, but this may not last indefinitely.
Our commitment to ensuring the resilience and stability of our core business segments, including innovation, customer service and long-term fair relationships with our clients, is therefore all the more important,” he added.
PPF Group, our parent, is strategically reassessing its priorities and avenues of business, which in turn is unlocking further opportunities for the development of PPF banka’s business,” said Petr Jirásko.
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