News

UniCredit Bank Czech Republic and Slovakia reported consolidated net profit of CZK 2.5 billion for the first half-year 2014

The after-tax profit of UniCredit Bank Czech Republic and Slovakia increased from CZK 1,400 million (as of 30.6.2013*) to CZK 2,474 million (as of 30.6.2014).

• Consolidated net profit of UniCredit Bank Czech Republic and Slovakia grew by 76.8% yoy compared to 2013 half-year results of UniCredit Bank Czech Republic.
• Customer deposits increased by 47.2% yoy, of that bank deposits in the Czech Republic jumped by 12.8% and in Slovakia dropped by 3.3%. 
• Customer loans grew by 73% compared to 30 June 2013; after adjusting for the merger effect, bank loans increased by 10.7% in the Czech Republic and 6.4% in Slovakia; customer loans of both leasing companies rose by 4% in total in comparison to the previous year. 
• Total assets reported an increase by 54.4% yoy thanks to strong business growth due to the merger of UniCredit Bank and acquisition of UniCredit Leasing in the Czech Republic and Slovakia. 
• Equity reported grew by 50.3% compared to the same period of the last year.

Comments of Mr. Jiří Kunert, CEO and Chairman of the Board of Directors of UniCredit Bank Czech Republic and Slovakia:

“The economic recovery in the Czech Republic and Slovakia gradually reflects in the investments made in the corporate sector and in an increased willingness of households to spend. Household consumption was also supported by improving labour market. In the first half-year, we considerably grew in terms of retail banking in both markets, namely thanks to unrivalled innovations in the area of current accounts, consumer loans and mortgages which were closed with our Bank by thousands of new customers."

As well as the volume of corporate loans continued to grow. In the area of leasing, we continue in strengthening of our position in brand financing of passenger and utility vehicles and we are developing the area of operative leasing for companies and natural persons in both the Czech Republic and Slovakia.”

Items of Profit and Loss Statement 
Net interest income of UniCredit Bank Czech Republic and Slovakia increased to CZK 4,913 million (as of 30.6.2013*: CZK 3,061 million). Net income from fees and commissions grew to CZK 1,754 million yoy (as of 30.6.2013*: CZK 1,028 million). After adjusting for the effect of merger and acquisition of leasing companies, net income from fees and commissions in the Czech Republic dropped by 1.2%.

“The banking sector continues to be negatively affected from the low interest rate environment and recent ECB rate decisions which are not helpful for net interest income generation. However, UniCredit Bank Czech Republic and Slovakia shows a strong net interest income development as a result of the merger and the acquisition of leasing companies in the Czech Republic and Slovakia.

We continue to be well capitalized and enjoy a strong liquidity position which allows us to support our Retail and Corporate customers which are looking for loans,” said Mr. Gregor Hofstaetter-Pobst, Chief Financial Officer of UniCredit Bank Czech Republic and Slovakia.

The level of general administrative expenses increased by 51.1% to CZK 3,466 million (as of 30.6.2013*: CZK 2,293 million). Credit risk cost grew to CZK 1,224 million yoy, i.e. an increase by 55.3% compared to the previous year (as of 30.6.2013*: CZK 788 million). After adjusting for the merger effect in the Czech Republic, they fell by 30.7%.

Balance Sheet

As of 30 June 2014, total assets of UniCredit Bank Czech Republic and Slovakia amounted to CZK 488,706 million, i.e. an increase by 54.4% compared to the figures as of 30 June 2013* (CZK 316,563 million).

On the assets side of the Balance Sheet, receivables from clients increased by 73% to CZK 328,564 million in total compared to the state as of 30.6.2013* (CZK 189,934).

On the liabilities side, liabilities towards clients grew by 47.2% to CZK 290,783 million 
(30.6.2013*: CZK 197,501 million). Liabilities from debt securities rose by 15.7% to CZK 44,458 million (30.6.2013*: CZK 38,417 million).

Bank's equity grew by 50.3% compared to 1H2013, namely to CZK 55,105 million (as of 30.6.2013*: CZK 36,654 million).