CSOB - Financial Performance in 2Q2019


Language: English
Company: CSOB
Provider: Helgi Analytics

This report analyses the performance of CSOB 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:

CSOB made a net profit of CZK 6,099 mil in the second quarter of 2019, up 74.3% when compared to the previous year. Total revenues increased 33.9% yoy to CZK 11,410 mil, ROE amounted to 26.1% and the NPL ratio stood at 2.39%. In the last three years, the bank grew its loans by 15.9% a year, revenues rose by 5.23% and net profit increased by 6.75% a year, on average.

Revenues increased 33.9% yoy to CZK 11,410 mil in the second quarter of 2019. Interest income formed 67.6% of total revenues with the net interest margin increasing 16.7 bp to 1.89% of total assets. Fees added a further 19.2% to total revenue generated in 2Q2019, down from an average of 21.5% as seen in the previous two years.

Operating costs grew by 5.31% yoy to CZK 4,425 mil, so cost to income ratio reached 38.8%, down by 3.75% compared to the previous two years. Staff accounted for 51.1% of total operating expenditures. At the end of second quarter of 2019, the bank operated a network of 227 branches and 8,562 employees.

Loans and deposits grew by 14.8% and 14.8% qoq respectively, so loan to deposit ratio reached 83.2% at the end of 2Q2019. That’s up from 75.6% the previous year. Equity reached 5.35% of assets and capital adequacy ratio amounted to 18.7% at the end of the second quarter of 2019.

NPLs were 2.39% of total loans at the end of the quarter. Provisions covered 59.8% of non-performing loans

When compared to selected peers, CSOB was 35.9% more profitable in terms of ROE, achieved 1.39% worse cost efficiency when measured by cost to income ratio and grew its loans by 44.2% faster based on a last year comparison.

Banking | Czech Republic | January 19, 2020