11/04/2012 PPF Banka continues growth in 2011

PPF banka a.s. (the “Bank”): PPF banka grew by 26% and its balance sheet total reached CZK 65.7 billion as at 31 December 2011.
“The Bank has grown by more than 20 per cent each year over the last 5 years and its equity has been growing at the same rate. The Bank’s profit amounted to CZK 606 million in spite of the difficult conditions on the financial markets. For the future we plan to increase our lending activities and in this way to support Czech companies and the Czech economy”.
Petr Milev, Chief Executive Officer

• The Bank’s balance sheet total increased by 26% year on year to CZK 65.7 billion as of 31 December 2011.
• Revenue from own activities amounted to CZK 1.286 billion for the year 2011 up compared to CZK 1.256 billion for 2010.
• Revenue from fees and commissions was CZK 426 million for 2011, compared to CZK 218 million for the same period in 2010.
• Audited profit after tax for the period ending 31 December 2011 was CZK 606 million, which was slightly down on the same period in 2010 when the Bank had generated a net profit of CZK 660 million.

The Bank’s balance sheet total increased significantly by 26% to CZK 65.7 billion as at 31 December 2011. Audited profit after tax amounted to CZK 606 million as at 31 December 2011, which was 8% less than the net profit result in 2010. The key profit drivers for the year were the growth of net interest income (up CZK 230 million year on year) and the growth of net fee and commission income (up CZK 208 million year on year). The increase in risk-free income, including net fees and commissions, of more than 95% (CZK 426 million vs. CZK 218 million in 2010) contributed significantly to the Bank’s successful result. However, financial market transactions had a negative impact on financial performance as a result of the difficult economic situation in the euro zone.
Taking into account the general economic situation, which remains challenging, the Bank continues to emphasise the high quality of its loan portfolio and the volume of non-performing loans decreased from 5.4% to 2.8% year on year. The volume of loans provided to clients increased by 13% year on year from CZK 18.7 billion at the end of 2010 to CZK 21.1 billion as at 31 December 2011. The Bank’ new activities contributed the most to this increase. The Bank plans to continue expanding its lending activities and thereby supporting Czech companies and the Czech economy.
The Bank achieved RoE and CIR ratios of the solid levels of 15% and 45%, respectively.
PPF banka is a part of the PPF international investment group. The PPF Group N.V. owns 92.96 per cent of the Bank’s stock and the City of Prague holds the remaining 6.7 per cent.

CZK million 31 December 2010 31 December 2011 Year-on-year change
Total assets 52,361 65,718 26%
Total equity 4,170 4,690 12%
Profit before tax 804 758 -6%
Profit after tax 660 606 -8%
Fee and commission income 218 429 95%