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02/08/2012 PPF banka continues growth in the first half of 2012

PPF banka a.s. (the “Bank”) announces that first half net profit increased 40% year on year and total assets were CZK 78.7 billion at 30 June 2012.

“The Bank generated net profit of CZK 603.1 million in the first half of 2012, which is almost equal to the profit for the entire 2011. In addition to the increasing total assets, we are pleased by the reduction in the percentage of classified credit to 2.6%, including credit overdue for more than 90 days to 2.18%.
The situation on the financial markets in the eurozone remains very difficult, which is why we have to remain careful. We thank our shareholders for their support and are happy to see that our services offer value to our clients.”
Petr Milev, CEO

SUMMARY
• Net profit after tax for H1 2012 was CZK 603 million, representing a year-on-year increase of 40% or CZK 172 million.
• Total assets grew 48% year on year to CZK 78.7 billion at 30 June 2012.
• Credit provided to customers grew 26% year on year to CZK 22.8 billion on 30 June 2012.
• Profit from financial operations for H1 2012 reached CZK 241 million, a year-on-year increase of CZK 245 million.


FINANCIAL RESULTS
The Bank’s total assets grew significantly by 48% to CZK 78.7 billion as at 30 June 2012. The amount of credit provided to clients grew 26% year on year to CZK 22.8 billion as at 30 June 2012 from CZK 18.1 billion at the end of H1 2011, primarily thanks to the active business policy and new activities. On the liability side, the growth of deposits primarily from municipal clients continued growing.

Net profit after tax as at 30 June 2012 was CZK 603 million, representing a 40% year-on-year increase or CZK 171 million. The principal contributors to the profit increase were the growth in revenue from capital markets operations (CZK +245 million year on year) and the growth of net interest income (CZK +73 million year on year), which more than offset the decrease in net income from fees and commissions (CZK -66 million year on year) and the increase in provisions created (CZK -53 million year on year).

Given the continued economic turmoil, the Bank continues to place emphasis on the quality of its credit portfolio. The amount of its classified credit has decreased from 5.25% to 2.60% in year-on-year terms.

The Bank keeps its operating expenses under control and this conservative policy led to a 2% year-on-year cost reduction, with CIR at 23%.

ROE amounted to a solid 24%. The company’s equity increased to CZK 5.433 billion.

PPF banka is part of the international investment group, PPF. PPF Group N.V. holds 92.96 percent of the Bank’s shares and the City of Prague holds 6.7 percent.

KEY INDICATORS
CZK million 30. June 2011 30. June 2012 Year-on-year change
Total assets 53,219 78,649 48%
Total equity 4,641 5,433 17%
Profit before tax 539 751 39%
Profit after tax 431 603 40%
Profit from financial operations -3 241 n.a.
Amount of credit provided to clients 18,068 22,815 26%