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09/06/2010 Audited 2009 financial results: 49% increase in net profit to CZK 811 million

PPF banka a.s. (‘PPF banka’ or ‘the Bank’), commercial bank owned from 92.96% by PPF Group N.V. announces its financial results for the year ended 31 December 2009 in accordance with Czech Accounting Standards (CAS)
‘We are glad to announce that the auditors have confirmed our preliminary results for 2009 published in January 2010. Apart from our excellent revenues on capital markets operations we can state that we have also very healthy loan book. In the current difficult economic climate the increase of value of the Bank is positive message not only for our shareholders but also for our partners and clients.’
Petr Milev,
Chief Executive Officer
HIGHLIGHTS

Net profit for the year ended 31 December 2009 of CZK 811 (2008: CZK 543 million, increase of 49%).
Continued growth in profit from own business activities to CZK 1,462 million in 2009 (2008: CZK 951 million, increase of 54%)
283% increase in profit from financial activities from CZK 139 million in 2008 to CZK 531 million in 2009
Decrease of PPF banka’s balance sheet from CZK 44.7 billion in 2008 to CZK 43.3 billion as at YE2009 (3% decrease y-o-y)


BUSINESS OVERVIEW
Due to the ongoing economic crisis, the Bank has focused on the quality of its interest-bearing portfolio, the income derived from commissions and fees and on new activities in the retail loan business. The overall due to customers decreased by 15% from CZK 34.9 billion in 2008 to CZK 29.6 billion as of 31 December 2008.
The volume of classified sub-standard and worsen loans declined year on year from 6.9% to 6.4% and volume of bad debts (loans overdue for more than 90 days) was lower than 0.5%. The volume of loans provided to clients increased by 54% year on year to CZK 13.5 billion as of 31 December 2009 from CZK 8.8 billion as of YE2008.
Return on equity (ROE) and cost/income ratio reached better than average 32% and 30% respectively.


FINANCIAL RESULTS
As of 31 December 2009 PPF banka reported the net profit of CZK 811 million compared to CZK 543 million for the year ended 31 December 2008, an increase of 49%. The main drivers of this profitable growth were following:

Profit from financial operations increased by CZK 392 million to CZK 531 million in 2009, representing an increase of 283%;
Income derived from commissions and fees increased year on year by 47% to CZK 283 million in 2009


PPF banka prepares and regularly presents its financial results in accordance with Czech Accounting Standards (CAS) and International Financial Reporting Standards (IFRS). Financial results in accordance with CAS may differ from numbers in its financial statements according to the IFRS. The financial statements according to the IFRS will be released in a normal fashion and will be subsequently available on the PPF banka’s website www.ppfbanka.cz.


KEY FIGURES

CZK million 2008 2009 Y-o-Y change
Profit before tax
571
1,036
81%
Profit after tax
543
811
49%
Profit from financial operations
139
531
283%
Total assets
44,710   43,256
-3%
Total equity
2,674
3,512
31%