This report analyses the performance of Ceska Sporitelna 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:
Ceska Sporitelna made a net profit of CZK 4,758 mil in the second quarter of 2019, up 25.2% when compared to the previous year. Total revenues increased 16.2% yoy to CZK 10,646 mil, ROE amounted to 14.9% and the NPL ratio stood at 1.80%. In the last three years, the bank grew its loans by 9.46% a year, revenues rose by 3.71% and net profit increased by -0.725% a year, on average.
Revenues increased 16.2% yoy to CZK 10,646 mil in the second quarter of 2019. Interest income formed 69.2% of total revenues with the net interest margin increasing 1.82 bp to 1.96% of total assets. Fees added a further 21.2% to total revenue generated in 2Q2019, down from an average of 22.0% as seen in the previous two years.
Operating costs grew by 4% yoy to CZK 4,705 mil, so cost to income ratio reached 44.2%, down by 8.94% compared to the previous two years. Staff accounted for 54.3% of total operating expenditures. At the end of second quarter of 2019, the bank operated a network of 487 branches and 9,821 employees.
Loans and deposits grew by 2.21% and 5.54% qoq respectively, so loan to deposit ratio reached 69.7% at the end of 2Q2019. That’s down from 75.8% the previous year. Equity reached 8.61% of assets and capital adequacy ratio amounted to 20.6% at the end of the second quarter of 2019.
NPLs were 1.80% of total loans at the end of the quarter. Provisions covered 96.3% of non-performing loans
When compared to selected peers, Ceska Sporitelna was 22.7% less profitable in terms of ROE, achieved 12.4% better cost efficiency when measured by cost to income ratio and grew its loans by 28.6% faster based on a last year comparison.