5/28/2008

J&T Banka profit in Q1 2008

“The bank created higher reserves for future income tax in comparison with the previous year, that is why the growth in net profit is lower than last year,” said Štěpán Ašer, member of the Board of Directors of J&T BANKA. The higher profit is mainly due to a growth in the bank’s balance sheet total, which was almost CZK 38 billion. It is a 55% increase in comparison with the same period of the previous year.
The increase in the balance sheet total was mainly due to a significant growth in client deposits, which grew by almost 70 % against last year, to CZK 29 billion. The higher balance sheet total had a positive effect on the growth of net interest earnings, which grew by more than 30 % in a year-to-year comparison.
The bank’s administrative costs grew by 51 % in comparison with the same period of the previous year. “Some of the growth in administrative costs is related to one-time expenses on the preparation of a debenture issue and to earlier invoicing of seasonal costs. After adjustment for those effects, the growth in administrative costs is only 24 %. So we are able to achieve economy of scale and improve efficiency as our balance sheet total grows,” said Štěpán Ašer, CEO of the bank.
The volume of client loans provided grew by 51 % against last year. “In response to uncertainties in the global economy and financial markets, we have significantly slowed down the growth in our loan portfolio and increased available reserves during the last two quarters. The volume of loans provided grew by 6.6 % in the last 6 months, while the bank’s balance sheet total grew by more than 20 % in the same period,” Štěpán Ašer explains. “We do not see any immediate danger for the domestic economy. We are still evaluating a number of attractive deals but we cooperate with foreign banks in the financing of a number of projects and have to take their more cautious approach to financing into consideration,” Štěpán Ašer adds. J&T BANKA’s current resources are almost CZK 11 billion today, which is almost 73 % more than in the comparable period of the previous year.
J&T BANKA achieved an increase in profit in spite of the fact that it collected 15 % less in fees, totalling CZK 23.5 million, in the first quarter. The lower income from fees is due to clients’ lower trading activity as well as lower remuneration for the appreciation of client portfolios.
J&T BANKA, a.s., is a member of the J&T Group. It focuses strategically on clients and trades that require a high level of individual approach. In addition to comprehensive private banking services for selected clients, the bank provides specialised financing in real estate and enterprise acquisitions and trades in securities for major private investors. The bank has operated in the Czech Republic since 1998 and in Slovakia since its office was opened two years ago. In addition to the Czech Republic and Slovakia, the J&T Group is also engaged in banking in Switzerland and Russia.

Main balance sheet items

	31.3.2008	31.3.2007
Bank’s balance sheet total	37 999 860	24 437 987
Cash money and bank deposits	10 874 423	6 279 854
Receivables from clients	25 841 895	16 562 932
Liabilities to clients	29 442 108	17 334 565
Capital	2 898 300	2 668 451

Main P/L statement items

	31.3.2008	31.3.2007
Interest income	531 790	315 249
Interest expense	- 323 842	- 154 404
Net interest income	207 948	160 845
Income from fees and commission	23 499	27 662
Administrative costs	- 95 183	- 63 175
Pre-tax profit	112 680	80 452
Income tax expense	- 27 404	- 6 898
Post-tax profit	85 276	73 553

author: Petr Málek - ředitel odboru marketingu