After three quarters of 2006, Slovenská sporiteľňa strengthened its leadership on the Slovak banking market
"The volume of loans of Slovenská sporiteľňa is further increasing. According to IFRS, volume of total loans granted as of 30 September 2006 increased by 39% y/y and totaled SKK 118.7 billion. The largest increase by almost three quarters was recorded in housing loans. We are pleased that the volume of corporate loans is also increasing. Recently, the demand for deposit products has also increased by 12% y/y and totaled SKK 203 billion. Owing to these results, we strengthened our position as the largest and strongest bank in Slovakia" said Štefan Máj, Deputy Chairman of the Board of Directors of Slovenská sporiteľňa.
* Consolidated results of Slovenská sporiteľňa as of 30 September 2006 according to the International Financial and Reporting Standards (IFRS) compared to the results as of 30 September 2005.
KEY INDICATORS OF BUSINESS RESULTS AS AT 30 SEPTEMBER, 2006
- Operating profit increased by 6% to SKK 4 014 million.
- Profit after tax is SKK 2 779 million and is 4% higher in comparison to the same period of the previous year.
- Net interest income, representing a 69% share on the operating income increased by 9% to SKK 6 317 million.
- Net fee and commission income recorded a 4% y/y decrease to
SKK 2 301 million. - Gross volume of loans and advances to customers grew by 39% y/y
from SKK 85.6 billion to SKK 118.7 billion. - Total assets went up by 7% y/y and achieved SKK 291 billion.
- Amounts owed to customers increased by 12% from SKK 182 billion to
SKK 203 billion. - Return on equity (ROE) achieved 20.2% compared to 21% in the previous period.
- Capital adequacy ratio reached 10.2%, last year it was 13.3%. The capital adequacy ratio decreased due to the growth of loans and the subsequent risk weighted assets increase.
MAIN FACTORS INFLUENCING ECONOMIC RESULTS OF SLOVENSKÁ SPORITEĽŇA
The volume of loans to customers increased by 39% compared to the first three quarters of 2005 and reached SKK 118.7 billion. Loans provided to retail customers represent SKK 54.4 billion from this volume; they increased by 41% compared to
30 September 2005. Housing loans recorded again the greatest growth dynamics (74%) and at the same time also the most significant increase of volumes
(SKK 12 billion) owing to excellent sales results of the CreditPLUS for housing. Increasing trend in consumer loans has continued also in the third quarter of 2006, in comparison with the first three quarters of 2006 of the previous year they increased by 11%. The Bank provided corporate loans as at the end of September in the amount of SKK 64.3 billion, the small and medium-sized entrepreneurs having loans in the total volume of SKK 24.8 billion (y/y increase of 47%). Loans to large corporates have increased by 18%, i.e. by SKK 3.5 bn compared to September 2005.
Amounts owed to customers increased by 12% from SKK 182.1 billion at the end of September 2005 and reached SKK 203.3 billion as at 30 September 2006. In retail deposits, there was an increase above all in the volume of current accounts (by 20%). Guaranteed deposits of Slovenská sporiteľňa enjoy the ever-growing popularity, when the clients invested into this product as much as SKK 3.8 billion Sk (from January, 1 to September, 30). Corporate deposits increased by 13% to SKK 73.3 billion. Major increase was recorded on short-term time deposits of corporate entities and public sector (31%).
Net interest income has grown by 9% primarily due to the dynamic development of retail and SME loans and overall large volume of interest bearing assets and as a result of the NBS base rate increase (in the first three quarters of 2006 increased in total by 1.75%
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