Consolidated, unaudited financial results of Slovenská sporiteľňa as of 30 September 2018 according to International Financial Reporting Standards (IFRS).
„Slovenská sporiteľňa is achieving great results beyond our expectations this year. We continue to maintain our market leading position in loans and deposits and we are also strengthening our position with corporate clients. The growth of volumes also resulted in an increase of net profit. And at the same time, we were able to lower the cost income ratio. I am also proud that we are helping to change Slovakia into a modern country – together with our foundation we launched the largest grant #mamnato (believe in yourself) amounting to EUR 250 thousand. And as a responsible leader, we set a few examples ourselves,” Peter Krutil, Chairman of the Board of Directors and CEO of Slovenská sporiteľňa commented on the results.
FINANCIAL HIGHLIGHTS AS OF 30 SEPTEMBER 2018 (Y/Y COMPARISON)
- Net interest income went up by 0.1% y/y from EUR 328.2 million to EUR 328.3 million,
- Net fee and commission income increased by 16.3% y/y from EUR 83.4 million to EUR 96.9 million,
- Operating profit went down up 3.7% y/y from EUR 219.3 million to EUR 227.3 million,
- Net profit after tax increased by 12.2% y/y from EUR 126.2 million to EUR 141.6 million,
- Volume of loans and receivables to customers grew by 10.8% y/y from EUR 11.4 billion to EUR 12.6 billion,
- Deposits from customers increased by 11.1% y/y from EUR 12.3 billion to EUR 13.6 billion ,
- Cost income ratio reached 47.7%,
- Capital adequacy reached 17.6% and continues to considerably exceed the limit stipulated by the law (according to ECB/NBS, Basel III and IRB approach),
- Loan-to-deposit ratio increased y/y from 92.7 % to 92.4 %.
BUSINESS PERFORMANCE OVERVIEW OF SLOVENSKÁ SPORITEĽŇA AS OF 30 SEPTEMBER 2018
Net interest income went up slightly by 0.1% from EUR 328.2 million to EUR 328.3 million. Slight decrease of net interest income from loan products remained on comparable level despite the strong pressure from the competition.
Net fee and commission income increased by 16.3% y/y from EUR 83.4 million to EUR 96.6 million. The increase of fee and commission income was mainly achieved from mediation of insurance products and loan business.
The share of net fee and commission income on total operating income went up slightly y/y and reached 22.4%.
The net profit in the amount of EUR 7.1 million in the area of net trading and fair value result is lower by 39.1% compared with the comparable period of 2017 when it achieved EUR 11.7 million. This decrease is mainly the result of lower yields from market positions of the mother company Erste Group Bank AG.
General administrative expenses went up slightly by 0.3% in y/y comparison and reached EUR 207.1 million (in 2017 it was EUR 206.3 million). The increase in general administrative expenses was related to activities of the bank focusing on improvement of client service quality and increased personal costs. On the other hand, amortisation costs slightly decreased. Cost income ratio changed from 48.5% to 47.7% y/y as a result of the different growth rate of operating income and expenses.
Total risk costs of the bank reached EUR 17.3 million, i.e. a decrease by 30.9% compared with the comparable period of 2017. The share of defaulted loans on total loan volume decreased from 4.0% to 3.5% while the coverage with provisions went up from 78.2% to 80.8%.
Consolidated profit after tax went up by 12.2% and reached EUR 141.6 million.
The bank levy went up to EUR 22.5 million. The annual contribution into the Single Resolution Fund reached an estimated amount of EUR 2.7 million (EUR 2.8 million in 2017). The contribution into the Deposit Protection Fund increased by 8.4% y/y to EUR 0.9 million (EUR 0.8 million in 2017). Total levies of the bank are at EUR 26.1 million.
The volume of loans to customers increased by 10.8% y/y and achieved EUR 12.6 billion. Retail loans were the major driving force; they increased by 9.3% y/y (by EUR 0.8 billion) compared with the third quarter of 2017. Slovenská sporiteľňa again confirmed its position as market leader in retail loans; its market share reached 27.0% at the end of the first half of 2018. The main growth driver were housing loans which grew by 10.0% (EUR 700 million in absolute terms) and consumer loans which grew by 6.3% (by EUR 100 million). Loans to corporate clients (including factoring and leasing products) increased by 22.6% y/y (by EUR 600 million) and reached EUR 3.3 billion.
Retail deposits increased from EUR 10.1 billion to EUR 10.9 billion, providing a solid base for financing and room for further growth of the bank. Deposits from customers rose from EUR 12.3 billion to EUR 13.3 billion compared with the third quarter of 2017.