This report analyses the performance of Raiffeisenbank Czech Republic 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:
Raiffeisenbank Czech Republic made a net profit of CZK 1,911 mil in the second quarter of 2019, up 88.7% when compared to the previous year. Total revenues increased 13% yoy to CZK 2,944 mil, ROE amounted to 25.4% and the NPL ratio stood at 1.95%. In the last three years, the bank grew its loans by 2.52% a year, revenues rose by 1.69% and net profit increased by 30.0% a year, on average.
Revenues increased 13% yoy to CZK 2,944 mil in the second quarter of 2019. Interest income formed 72.4% of total revenues with the net interest margin increasing 17 bp to 2.35% of total assets. Fees added a further 15.0% to total revenue generated in 2Q2019, down from an average of 16.4% as seen in the previous two years.
Operating costs grew by 11.1% yoy to CZK 1,450 mil, so cost to income ratio reached 49.3%, down by 2.13% compared to the previous two years. Staff accounted for 57.8% of total operating expenditures. At the end of second quarter of 2019, the bank operated a network of 129 branches and 3,058 employees.
Loans and deposits grew by 0.254% and 2.53% qoq respectively, so loan to deposit ratio reached 69.6% at the end of 2Q2019. That’s up from 69.2% the previous year. Equity reached 8.27% of assets and capital adequacy ratio amounted to 17.2% at the end of the second quarter of 2019.
NPLs were 1.95% of total loans at the end of the quarter. Provisions covered 82.7% of non-performing loans
When compared to selected peers, Raiffeisenbank Czech Republic was 32.0% more profitable in terms of ROE, achieved 25.3% better cost efficiency when measured by cost to income ratio and grew its loans by 62.7% slower based on a last year comparison.