J&T Banka, one of the major private banks in the Czech market, generated a Net Profit (acc. to IAS/IFRS) of CZK 343 million during the first 9 months of this year. Compared to the same period of last year, this is 14% more. The bank’s Operating Profit reached CZK 513 million, down by 7.5% year on year.
The year-on-year Net Profit growth can be primarily attributed to a lower volume of adjustments created. Although the volume of Loans Granted showed just a marginal year-on-year growth, the bank managed to finance several major projects during the first 9 months of this year. Since in many cases these projects required comprehensive services including advisory in securing external sources of financing, the bank enjoyed a significant rise in the Fee and Commission Income, which rose nearly by 90% y-o-y to CZK 146 million.
However, due to the recent developments in the financial and capital markets, the Trading Income dropped by CZK 70 million year on year to CZK 15 million.
The bank’s Total Assets rose by 34% and exceeded CZK 63 billion. This growth stems mainly from growing Client Deposits, which increased by 30% to CZK 53 billion over the past 12 months. Presently, J&T Banka has the greatest amount of free liquidity in its history. On the one hand, this dampens the Net Interest Income; on the other hand, this fact opens the bank a road to major projects that we expect in the near future. These projects should generate significant additional revenue. The bank has been preparing for them in terms of both liquidity and capital. Following the July increase of its registered capital, the bank is now going to raise its equity capital by additional CZK 300 million.
The bank’s capital adequacy ratio as of September 30, 2011 reached 10.3% and by the end of the year it will have reached 11% even after taking the planned financing transactions into consideration.