12/04/2013 PPF banka continues strong growth in 2012

PPF banka a.s. (the “Bank”) generates record profit of nearly CZK 1 billion in 2012, up more than 56% year-on-year

PPF banka a.s. (the “Bank”) generates record profit of nearly CZK 1 billion in 2012, up more than 56% year-on-year
Petr Milev, Chief Executive Officer said: “The Bank has posted the largestprofit in its entire history, amounting to nearly a billion Czech crowns. The bank’s profit totalled CZK 945 million, with contributions from all of its business segments.”

Audited profit after tax for the period ended 31 December 2012 was CZK 945 million, the best result ever for the bank. Compared to 2011 net profit of CZK 606 million performance improved by 56% last year.
Revenue from own activities rose to CZK 1.686 billion in 2012, compared to CZK 1.286 billion in 2011.
Profit from financial market transactions amounted to CZK 354 million in 2012, compared to a CZK 237 million loss for the same period in 2011.
Total assets on the balance sheet increased by 17% year-on-year to CZK 76.8 billion as at 31 December 2012.
The Bank’s total equity rose 27% year-on-year to CZK 5.9 billion as at 31 December 2012 compared to CZK 4.7 billion the previous year.
In 2012 the Bank achieved a 20% return on equity and was able to maintain its cost/income ratio at 36%.

The Bank’s balance sheet total as at 31 December 2012 increased significantly to CZK 76.8 billion (up 17%). A CZK 945 million audited profit after tax at 31 December 2012 was the highest ever in the bank’s history, exceeding the previous record from 2009 by 17%, and the 2011 profit of CZK 606 million by 56%. The key profit drivers were growth in profit from financial market transactions (up by CZK 592 million year-on-year) and growth in net interest income (up by CZK 197 million year-on-year), fully offsetting lower net fees and commission income (down by CZK 129 million year-on-year) and provisions for loans (down by CZK 253 million year-on-year). The volume of outstanding loans was CZK 25.3 billion as at 31 December 2012, up 20% compared to CZK 21.1 billion at the end of 2011, primarily as a result of new activities. Despite the continued economic crisis, the Bank maintained its focus on the high quality of its loan portfolio. In line with its conservative approach, the Bank increased the volume of classified loans from 2.8% to 12.1%, including loans on the watch list, attaining the industry average in the Czech Republic. It also made provisions of CZK 241 million. The volume of NPLs (loans in default for more than 90 days) accounted for 2.72% of the total loan portfolio as at 31 December 2012. The Bank plans to continue expanding its lending activities, thereby supporting Czech companies and the Czech economy. The Bank achieved solid ROE and CIR levels of 20% and 36%, respectively.
PPF banka is part of the PPF international investment group. PPF Group N.V. currently holds 92.96 percent of the Bank’s stock, and the City of Prague holds the remaining 6.7 percent.

CZK million 31 December 2011 31 December 2012 Year-on-year change
Total assets 65,718 76,843 17%
Total equity 4,690 5,939 27%
Profit before tax 758 1 144 51%
Profit after tax 606 945 56%
Profit from financial market transactions -238 354 n.a.