3/26/2010

J&T BANKA’s Profit At Last Year’s Level

J&T BANKA’s Profit for 2009, calculated according to the IAS/IFRS, reached CZK 234 million, which is CZK 5 million more than in 2008. Operating Profit grew by more than 23% year on year, exceeding CZK 591 million.

The significantly higher Operating Profit can be attributed in particular to growing Net Interest Income. The improving margin on the credit business has fully compensated the overall decline in the volume of loans granted. In a year-on-year comparison, the credit portfolio volume  dropped by more than CZK 4 billion. The bank also saw its Client Deposits grow higher, which to a great extent stemmed from the fact that the bank entered a new segment in the Czech Republic and Slovakia. Early in the fourth quarter, the bank introduced term deposits with attractive interest rates for sums starting from CZK 500,000, and during the first months of selling this product, it served over 2,000 new clients. “The new product has been meeting our expectations, we plan to use the direct channel later on to offer other investment and deposit products, and we believe that a number of the clients acquired in this manner will also decide to use our private banking services,” said Štěpán Ašer, Chief Executive Officer.

The bank also enjoyed a 10% higher Fee and Commission Income year on year. “We are not a retail bank and we provide virtually basic banking services to our private clients free of charge; nonetheless, it is our goal to increase our fee income over the upcoming several years. We in particular see opportunities with respect to investment-related services, client asset management and arranging initial public offerings,” said Štěpán Ašer.

Despite the bank’s excellent operating performance, its Net Profit Before Tax is just a little higher than the year before. The final result was affected by the creation of adjustments to the credit portfolio. The bank created adjustments at more than CZK 250 million. “The final value of adjustments created is higher than we planned early last year, yet the ongoing recession in the sectors we finance has taken its toll. We consider it a great success that we managed to maintain the profit at last year’s level despite the unfavorable macroeconomic environment,” said Štěpán Ašer. Compared to 2008, the bank’s capital adequacy ratio grew by 164 b.b. and reached  11.76%. Neither this year is the bank going to use its profit to pay out dividends; instead, the earnings will be used to add to its capital. The bank’s long-term goal is to maintain its capital adequacy at 11%.

J&T BANKA, a. s. focuses strategically on clients and trades requiring a highly individual approach. In addition to comprehensive private banking services, the bank provides specialized financing for real estate projects and business acquisitions and trades in securities for private investors. Apart from the Czech J&T Banka, the J&T Group also includes a branch office in Slovakia, the Swiss-based J&T Bank (Switzerland) Ltd., J&T Bank zao based in Russia, and Bayshore Bank & Trust Corporation seated in Barbados.

 

Contact: Petr Málek, Marketing Director, malek@jtfg.com , +420 606 622 821