J&T BANKA Raised Its Operating Profit by 11% YoY to CZK 660.3 m



J&T Banka enjoyed a 11% growth of its 2011 Operating Profit, which reached CZK 660.3 million. Its Net Profit for last year increased by CZK 5 million to CZK 269 million. The Operating Profit grew in particular due to higher Fee and Commission Income, which nearly doubled year on year, reaching CZK 271.9 million. The bank enjoyed higher revenue primarily from fees for trading with securities and from its clients’ IPO programs.

The bank’s performance last year was marked by an effort to attract a wider group of potential clients. The bank acquired nearly 19,000 new clients last year and, therefore, enjoyed a significant growth in Client Deposits, which grew by more than 40% and exceeded CZK 55 billion. Deposits with terms of one year and longer accounted for 60% of Client Deposits.

“Client deposits with our bank grew faster last year than we expected. On the other hand, loans to clients did not show a significant growth until the second half of the year, which resulted in just a modest growth of our interest income. We are glad that, despite our major investments in the quality of service provided by means of personnel and system development, we managed to keep a double-digit Operating Profit growth rate. In 2012, our Operating Profit should grow even faster,” says Igor Kováč, Chief Financial Officer of J&T Banka.

With its capital increased by more than CZK 1.5 billion and available liquidity at more than CZK 17 billion, the bank is prepared in terms of both capital and liquidity to finance major client projects in 2012 too. The value of projects financed last year reached nearly CZK 10 billion.

The capital adequacy ratio was at 12.1% at the end of last year. The bank does not expect to pay out dividends from its profit generated in 2011.