This report analyses the performance of Banka Creditas 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 increased 63.7% yoy to CZK 284 mil in the second quarter of 2019. Interest income formed 97.1% of total revenues with the net interest margin decreasing 0.09 pp to 2.17% of total assets. Fees added a further -0.926% to total revenue generated in 2Q2019, up from an average of -2.82% as seen in the previous two years.
Operating costs grew by 58.9% yoy to CZK 184 mil, so cost to income ratio reached 64.8%, down by 47% compared to the previous two years. Staff accounted for 33.8% of total operating expenditures. At the end of second quarter of 2019, Banka Creditas operated a network of 31.0 branches and 307 employees.
Loans and deposits grew by 5.08% and 10.6% qoq respectively, so loan to deposit ratio reached 28.1% at the end of 2Q2019. That’s down from 41.3% the previous year. Equity reached 7.99% of assets and capital adequacy ratio amounted to 18.1% at the end of the second quarter of 2019.
NPLs were 9.82% of total loans at the end of the quarter. Provisions covered 23.9% of non-performing loans
When compared to selected peers, Banka Creditas was 10.6 pp less profitable in terms of ROE, achieved 24.8 pp worse cost efficiency when measured by cost to income ratio and grew its loans by 13.0 pp faster based on a last year comparison.