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UniCredit Bank Czech Republic and Slovakia, a.s. boosting its position: 24.4 per cent growth of its consolidated net profit in the first three quarters of 2015

onsolidated net profit went up by 24.4% yoy to CZK 4.6 billion compared to the results of the UniCredit Bank Czech Republic and Slovakia financial group for the same period a year ago. Compared to 30 September 2014, loans to clients went up by 7.4% on a consolidated basis. New financing provided to clients of leasing companies grew by 42.3% yoy. Customer deposits increased by 19.1% yoy. Consolidated assets of the financial group rose by 15.8% yoy. Consolidated capital adequacy is at 14.54% (non-audited data). UniCredit Bank was named Best Bank in real estate financing by the prestigious magazine Euromoney.

The after-tax consolidated profit of UniCredit Bank Czech Republic and Slovakia rose from CZK 3,680 million (as of 30 September 2014) to CZK 4,576 million (as of 30 September 2015). Mr. Jiří Kunert, CEO and Chairman of the Board of Directors of UniCredit Bank Czech Republic and Slovakia, commented on the results:  

"The consolidated net profit continues to grow at a dynamic pace, being above the average of both markets where we operate. Despite the strong competitive environment, the two-digit increase of customer deposits demonstrates the clients' confidence in our financial group. Factors, such as low interest rates, recovery in the real estate market, favourable conditions in financial markets and, in particular, a keen interest of clients in our innovative products and services, have once again contributed to the considerable growth of not only consumer and mortgage lending, but also mainly of corporate lending, where high investment activity is observed especially in the manufacturing segment. We have strengthened our leading position also thanks to the sharp growth of the volume of new financing granted to clients of leasing companies, which rose by 42.3% yoy."     

Items of Profit and Loss Statement

Consolidated net interest income of UniCredit Bank Czech Republic and Slovakia went up to CZK 7,813 million, representing an increase of 4% compared to the same period a year ago (as of 30 September 2014: CZK 7,511 million). Consolidated net income from fees and commissions grew by 8.8% to CZK 2,923 million yoy (as of 30 September 2014: CZK 2,686 million).  

The level of consolidated general administrative expenses increased by 3.4% to CZK 5,498 million (as of 30 September 2014: CZK 5,316 million). Consolidated credit risk cost dropped to CZK 1,071 million yoy, representing a decline by 36.7% compared to a year ago (as of 30 September 2014: CZK 1,692 million).  

"We strongly focus on the sustainable growth of net interest income while maintaining the quality of the loan portfolio. We have achieved exceptional business results, which prove our flexibility to adapt to the current market conditions. The increasing number of new clients in the Czech Republic and Slovakia and, at the same time, the dynamic growth of lending both in the retail and corporate sector are among the key drivers of our excellent business results. The increase of administrative expenses is fully under our control and it is solely related to the development of our business activities. Owing to our ongoing prudential approach and high quality of the loan portfolio, the cost of credit risk is falling by a solid 36.7% this year," said Mr. Gregor Hofstaetter-Pobst, CFO of UniCredit Bank.  

Balance Sheet

As of 30 September 2015, consolidated assets of UniCredit Bank Czech Republic and Slovakia amounted to CZK 590,083 million, representing a 16% increase compared to the figures as of 30 September 2014 (CZK 509,640 million).    

On the assets side of the consolidated Balance Sheet, receivables from clients increased by 7.4 % to a total of CZK 354,106 million compared to the state as of 30 September 2014 (CZK 329,601 million).  

On the liabilities side, the volume of customer deposits rose by 19.1% to CZK 348,186 million (30 September 2014: CZK 292,240 million). Bank liabilities evidenced by certificates went up by 56.8 % to CZK 71,065 million (30 September 2014: CZK 45,326 million).  

Consolidated equity of the bank grew by 6% to CZK 60,245 million (as of 30 September 2014: CZK 56,815 million).    

In retail banking, mortgage loans driven by the recovery in the real estate market and record-low interest rates went up by 16.1% yoy. Consumer loans rose by 11.8%. Interest in the fee-free U konto (U Account) is growing, with more than 218,000 clients taking full advantage of the account with all the benefits.  

Loans granted to large corporate clients increased by 12.3%. The dynamic growth of loans continued also in the segment of small and medium-sized enterprises, namely by 18.3% yoy.

In leasing companies, new financing of vehicles rose by 42.3% yoy. The strongest yoy percentage growth was reported by machinery and equipment (60%), vehicles over 3.5 tonnes (47.6%) and vehicles up to 3.5 tonnes (32%).  

Note for editors:

The consolidated net profit of the UniCredit Bank Czech Republic and Slovakia, a.s. financial group includes the results of UniCredit Bank and UniCredit Leasing in the Czech Republic and Slovakia as well as the results of UniCredit Factoring Czech Republic and Slovakia, a.s.