This report analyses the performance of Air Bank for the 2Q2019. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the Bank.
The key highlights are:
Revenues decreased 6.6% yoy to CZK 946 mil in the second quarter of 2019. Interest income formed 92.4% of total revenues with the net interest margin increasing 0.67 pp to 3.04% of total assets. Fees added a further 3.83% to total revenue generated in 2Q2019, down from an average of 4.24% as seen in the previous two years.
Operating costs grew by 6.89% yoy to CZK 403 mil, so cost to income ratio reached 42.6%, down by 41% compared to the previous two years. Staff accounted for 37.9% of total operating expenditures. At the end of second quarter of 2019, Air Bank operated a network of 35.0 branches and 775 employees.
Loans and deposits grew by 4.11% and 2.57% qoq respectively, so loan to deposit ratio reached 46.1% at the end of 2Q2019. That’s up from 45.0% the previous year. Equity reached 7.37% of assets and capital adequacy ratio amounted to 15.3% at the end of the second quarter of 2019.
NPLs were 0.870% of total loans at the end of the quarter. Provisions covered 103% of non-performing loans
When compared to selected peers, Air Bank was 2.79 pp more profitable in terms of ROE, achieved 2.75 pp worse cost efficiency when measured by cost to income ratio and grew its loans by 3.31 pp faster based on a last year comparison.