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30/10/2012 PPF banka reports record figures in the third quarter of 2012

PPF banka a.s. (the “Bank”) announces net profit exceeding CZK 900 million and total assets of CZK 93.3 billion at 30 September 2012

“The Bank generated net profit of CZK 949.7 million in the first three quarters of 2012, which exceeds the full year net profit figures for the Bank’s existence to date. In addition to total assets reaching almost CZK 100 billion, we are pleased to see a reduction in the percentage of classified credit to 0.93%, including credit overdue for more than 90 days to 0.28%.
The situation in both the domestic and global economy remains very difficult, which is why, in the future, we must still remain cautious. The growth in the total assets is influenced by the shareholders’ short-term liquid funds, which may decrease towards the end of the year. Despite that, the results to date have been excellent. We thank our clients for their trust and all employees for their commitment.”
Petr Milev, CEO

SUMMARY:


Net profit after tax for the first three quarters of 2012 reached CZK 949.7 million, representing a year-on-year increase of 148% or CZK 567 million
Total assets grew 30% year on year to CZK 3.3 billion at 30 September 2012
Credit provided to customers grew 35% year on year to CZK 25.6 billion at 30 September 2012
Profit from financial operations for the first three quarters of 2012 reached CZK 353 million, a year-on-year increase of CZK 646 million


FINANCIAL RESULTS:

The Bank’s total assets grew a significant 30% to CZK 93.3 billion at 30 September 2012. Thanks to the active business policy, the amount of credit provided to clients grew 35% year on year to CZK 25.6 billion at 30 September 2012 (from CZK 18.9 billion at the end of Q3 2011), in particular due to new acquisitions. On the liability side, the growth in term deposits primarily from small and medium-sized enterprises continued.
Net profit after tax as at 30 September 2012 was CZK 949.7 million, a 148% year-on-year increase, or CZK 567 million. The principal contributors to the profit increase were the growth in revenue from capital markets operations (CZK +646 million year on year), the growth of net interest income (CZK +128 million year on year), and the release of provisions (CZK +35 million year on year), which more than offset the decrease in net income from fees and commissions (CZK -94 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 8.25% to 0.93% in year-on-year terms.
The Bank keeps its operating expenses under close control and this conservative policy has led to costs remaining stable year- on- year, with CIR at 24%.
ROE amounted to a solid 24%. The company’s equity increased to CZK 5.896 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 September 2011 30 September 2012 Year-on-year change
Total assets 71,850 93,276 30 %
Total equity 4,584 5,896 29 %
Profit before tax 481 1,173 144 %
Profit after tax 382 950 148 %
Profit from financial operations (293) 353 n.a.
Amount of credit provided to clients 18,927 25,575 35 %