This report analyses the performance of Expobank Czech Republic for the 1Q2019. 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 25.4% yoy to CZK 156 mil in the first quarter of 2019. Interest income formed 80.3% of total revenues with the net interest margin increasing 0.79 pp to 2.20% of total assets. Fees added a further 7.23% to total revenue generated in 1Q2019, down from an average of 9.04% as seen in the previous two years.
Operating costs grew by 8.29% yoy to CZK 121 mil, so cost to income ratio reached 77.6%, down by 1.67% compared to the previous two years. Staff accounted for 61.4% of total operating expenditures. At the end of first quarter of 2019, Expobank Czech Republic operated a network of 2.00 branches and 204 employees.
Loans and deposits dropped by 21% and 6.97% qoq respectively, so loan to deposit ratio reached 45.6% at the end of 1Q2019. That’s up from 45.6% the previous year. Equity reached 13.7% of assets and capital adequacy ratio amounted to 24.0% at the end of the first quarter of 2019.
NPLs were 4.91% of total loans at the end of the quarter. Provisions covered 90.4% of non-performing loans
When compared to selected peers, Expobank Czech Republic was 11.5 pp less profitable in terms of ROE, achieved 29.3 pp worse cost efficiency when measured by cost to income ratio and grew its loans by 17.4 pp slower based on a last year comparison.