J&T Banka, 2016 Private Bank of the Year, has ended the third quarter with a 27% increase in client investments, which have reached CZK 133 billion in total. So far, the bank has executed eight bond issues totalling 11.7 billion crowns, generating CZK 4.5 billion into J&T investment funds for private clients.
“Growth in the volume of client investments has been accelerated by a drop in interest rates on deposits. It was thus possible to clearly observe the transfer of client funds from term deposits (CZK -17 billion) to investments (CZK +28 billion),” explains Štěpán Ašer, CEO of J&T Banka, adding: “Despite the lower influx of funds, deposits still managed to reach CZK 106.1 billion, with the majority of deposits continuing to be deposits with a maturity exceeding 12 months.”
Net profit for the respective period totalled CZK 913 million. Its year-on-year decrease was caused chiefly by a drop in net interest income (-9 %) and a drop in trading revenue (-44 %). On the other hand, net revenue from fees grew (+39%), chiefly thanks to a rise in client investments.
Compared internationally, equity also grew, due to an increase from J J&T Finance Group SE at the end of 2015, the sale of perpetuity certificates and, in part, retained earnings from the previous year. Equity at the end of September amounted to CZK 19.05 billion (a year-on-year increase of CZK 3.7 billion). Capital adequacy thus reached 16.2%.