This report analyses the performance of UniCredit 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:
UniCredit Czech Republic made a net profit of CZK 2,572 mil in the second quarter of 2019, up 23.1% when compared to the previous year. Total revenues increased 9.69% yoy to CZK 4,961 mil, ROE amounted to 14.6% and the NPL ratio stood at 2.51%. In the last three years, the bank grew its loans by -0.348% a year, revenues rose by 5.75% and net profit increased by 11.4% a year, on average.
Revenues increased 9.69% yoy to CZK 4,961 mil in the second quarter of 2019. Interest income formed 65.2% of total revenues with the net interest margin decreasing 6.04 bp to 1.50% of total assets. Fees added a further 17.1% to total revenue generated in 2Q2019, down from an average of 17.2% as seen in the previous two years.
Operating costs dropped by 1.53% yoy to CZK 1,573 mil, so cost to income ratio reached 31.7%, down by 17.7% compared to the previous two years. Staff accounted for 53.7% of total operating expenditures.
Loans and deposits grew by 0.203% and 2.67% qoq respectively, so loan to deposit ratio reached 64.9% at the end of 2Q2019. That’s down from 108% the previous year. Equity reached 8.38% of assets and capital adequacy ratio amounted to 18.4% at the end of the second quarter of 2019.
NPLs were 2.51% of total loans at the end of the quarter. Provisions covered 89.5% of non-performing loans
When compared to selected peers, UniCredit Czech Republic was 23.9% less profitable in terms of ROE, achieved 19.4% worse cost efficiency when measured by cost to income ratio and grew its loans by 38.1% slower based on a last year comparison.