J&T BANKA, one of the most prominent private banks in the Czech Republic, ended last year with record earnings according to the audited consolidated results. With a stable balance sheet total of CZK 151.72 billion (+1%), it attained a net profit of CZK 3.16 billion (+52%). The bank’s equity was in excess of CZK 21.51 billion (+12 %).
Market developments contributed to the record results. The growing Czech crown interest rates helped spur higher interest margins, resulting in interest income totalling CZK 3.96 billion. The excess of liquidity and investment capital on the market was reflected in the demand for bonds. Bond placement fees contributed substantially to revenue from fees and commissions, which totalled CZK 1.40 billion. In 2019, the bank placed on the market 17 bond issues with a total nominal value of over CZK 28.8 billion. The bank thus holds the position of the leading arranger of corporate bond issues in the Czech Republic and Slovakia.
In line with its long-term strategy, the bank also optimised its deposit base with regard to volume, product structure and tenor. Long-term deposits with a maturity of one year or more continue to predominate. Client deposits totalled CZK 114.55 billion (-3.7%) at the end of the year.
As regards investment products, the bank introduced two new investment funds for minor investors in 2019: J&T RENTIER and J&T DIVIDEND. The two biggest funds – J&T MONEY and J&T BOND – won first and second place in the 2019 Fincentrum & Swiss Life Select Investment of the Year contest. The total volume of assets in the mutual funds managed by J&T INVESTIČNÍ SPOLEČNOST was CZK 28.56 billion at the end of the year.
The bank’s capital adequacy reached 16.48% at the end of the year. The bank is thus sufficiently equipped to guarantee stability and continued development in the years ahead.