This report analyses the performance of Ceskomoravska Stavebni 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:
Revenues increased 7.52% yoy to CZK 685 mil in the second quarter of 2019. Interest income formed 78.2% of total revenues with the net interest margin increasing 0.14 pp to 1.44% of total assets. Fees added a further 21.0% to total revenue generated in 2Q2019, down from an average of 23.3% as seen in the previous two years.
Operating costs grew by 3.84% yoy to CZK 318 mil, so cost to income ratio reached 46.5%, up by 2.58% compared to the previous two years. Staff accounted for 41.2% of total operating expenditures. At the end of second quarter of 2019, Ceskomoravska Stavebni Sporitelna operated a network of 290 branches and 506 employees.
Loans and deposits grew by 0.967% and 0.641% qoq respectively, so loan to deposit ratio reached 84.7% at the end of 2Q2019. That’s up from 82.8% the previous year. Equity reached 6.09% of assets and capital adequacy ratio amounted to 22.7% at the end of the second quarter of 2019.
NPLs were 3.95% of total loans at the end of the quarter. Provisions covered 54.1% of non-performing loans
When compared to selected peers, Ceskomoravska Stavebni Sporitelna was 6.84 pp less profitable in terms of ROE, achieved 7.14 pp worse cost efficiency when measured by cost to income ratio and grew its loans by 4.48 pp slower based on a last year comparison.