This report analyses the performance of Equa 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:
Equa Bank made a net profit of CZK 139 mil in the second quarter of 2019, up 53.3% when compared to the previous year. Total revenues increased 20.3% yoy to CZK 480 mil, ROE amounted to 10.7% and the NPL ratio stood at 2.64%. In the last three years, the bank grew its loans by 12.2% a year, revenues rose by 20.4% and net profit increased by 65.8% a year, on average.
Revenues increased 20.3% yoy to CZK 480 mil in the second quarter of 2019. Interest income formed 95.1% of total revenues with the net interest margin increasing 7.67 bp to 3.21% of total assets. Fees added a further 0.851% to total revenue generated in 2Q2019, up from an average of -1.81% as seen in the previous two years.
Operating costs grew by 10.2% yoy to CZK 229 mil, so cost to income ratio reached 47.8%, down by 34.5% compared to the previous two years. Staff accounted for 40.1% of total operating expenditures. At the end of second quarter of 2019, the bank operated a network of 20.0 branches and 514 employees.
Loans and deposits grew by 3.91% and 1.68% qoq respectively, so loan to deposit ratio reached 84.9% at the end of 2Q2019. That’s up from 80.1% the previous year. Equity reached 9.18% of assets and capital adequacy ratio amounted to 16.2% at the end of the second quarter of 2019.
NPLs were 2.64% of total loans at the end of the quarter. Provisions covered 51.2% of non-performing loans
When compared to selected peers, Equa Bank was 40.8% less profitable in terms of ROE, achieved 19.8% better cost efficiency when measured by cost to income ratio and grew its loans by 92.6% slower based on a last year comparison.