J&T BANKA, one of the most important private banks on the Czech market, closed its Q1 with a net profit of CZK 536 million, which is a 1.5-fold increase year-on-year. Its operating income in the same period was CZK 1.036 billion.
Its balance sheet total grew by thirty-nine per cent year-on-year, exceeding CZK 121 billion at the end of March. The growth was mostly caused by a repeated increase in client deposits, which grew by 36% year-on-year to nearly CZK 96 billion. There was also a dynamic year-on-year growth (+33%) in loans, which exceeded CZK 56 billion and significantly affected net interest earnings in Q1. The net interest earnings were CZK 730 million (+64%) at the end of March. The bank is thus ready to keep funding new projects.
The bank had a capital adequacy ratio of 13.3% at the end of Q1, meeting the stricter prudential requirements resulting from the European Union’s new requirements in CRR/CRD IV, applicable since 1 January 2014. The end of March was also the end of long-term cooperation with Moody’s. “EU rules and regulations in the field of bank capital management largely demotivate systemically smaller banking institutions from voluntarily cooperating with rating agencies. That’s why we asked Moody’s to remove their rating of J&T Banka,” comments Igor Kováč, member of the Board of Directors of J&T Banka, on the end of the cooperation.