Consolidated, unaudited financial results of Slovenská sporiteľňa as of 31 March 2018 according to International Financial Reporting Standards (IFRS).  

”Slovenská sporiteľňa started off well in 2018. Owing to economic growth, the standard of living in Slovakia is improving and as a result, our loan portfolio continues to grow dynamically. The favourable economic situation is also reflected in lower risk costs and a very low ratio of non-performing loans. I am very proud that we received the Via Bona award for corporate social responsibility. We are a responsible member of the community in which we conduct our business and which we are part of. We always keep that in mind in all our activities,” Peter Krutil, Chairman of the Board of Directors and CEO of Slovenská sporiteľňa comments on the beginning of the year.

FINANCIAL HIGHLIGHTS AS OF 31 MARCH 2018 (Y/Y COMPARISON)

• Net interest income went down by 0.6% y/y from EUR 109.4 million to EUR 108.8 million
• Net fee and commission income increased by 0.8% y/y from EUR 26.5 million to EUR 26.7 million 
• Operating profit went down by 3.1% y/y from EUR 71.9 million to EUR 69.7 million 
• Net profit after tax increased by 0.2% y/y from EUR 40.8 million to EUR 40.9 million 
• Volume of loans and receivables to customers grew by 13.0% y/y from EUR 10.6 billion to EUR 11.9 billion 
• Deposits from customers increased by 11.7% y/y from EUR 11.7 billion to EUR 13.1 billion 
• Cost income ratio reached 50.2%
• Capital adequacy reached 16.9% and considerably exceeds the limit stipulated by the law (according to ECB/NBS, Basel III and IRB approach)
• Loan-to-deposit ratio increased y/y from 90.2 % to 91.2 %
  

BUSINESS PERFORMANCE OVERVIEW OF SLOVENSKÁ SPORITEĽŇA AS OF 31 MARCH 2018

Net interest income went down slightly by 0.6% from EUR 109.4 million to EUR 108.8 million. Despite the strong pressure from competition and low interest rates, net interest income from loan products remained on comparable level. Last year, several bonds matured and as a result, the bank recorded a lower interest income which was offset by an adjustment of interest rates for deposit products.

Net fee and commission income increased slightly by 0.8% y/y from EUR 26.5 million to EUR 26.7 million. The increase of fee and commission income was mainly achieved from mediation of insurance products and loan business. Fees for transactional banking and securities transactions recorded a decrease.

The share of net fee and commission income on total operating income decreased slightly and reached 19.1%.

The net profit in the amount of EUR 3.4 million in the area of net trading and fair value result is mainly related to the development of the valuation of derivate instruments and lower by 11.0% compared with the first quarter of 2017 (EUR 3.8 million).

General administrative expenses went up slightly by 2.4% in y/y comparison and reached EUR 70.2 million (in 2017 it was EUR 68.6 million). The increase 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 48.8% to 50.2% y/y as a result of the lower operating income.

Total risk costs of the bank reached EUR 6.7 million, i.e. a decrease by 3.4% compared with the comparable period of 2017. The share of defaulted loans on total loan volume decreased from 4.4% to 3.7% while the coverage with provisions went up from 75.2% to 80.5%.

Consolidated profit after tax went up slightly by 0.2% and reached EUR 40.9 million.

The bank levy went up by 10.5% to EUR 7.3 million. The annual contribution into the Single Resolution Fund reached an estimated amount of EUR 2.8 million while the bank reported an amount of EUR 5.0 million in the comparable period. The contribution into the Deposit Protection Fund increased by 8.3% y/y to EUR 0.9 million. Total levies of the bank are at EUR 10.9 million.

The volume of loans to customers increased by 13.0% y/y and achieved EUR 11.9 billion. Retail loans were the major driving force; they increased by 11.7% y/y (by EUR 1.0 billion) compared with the first quarter of 2017. Slovenská sporiteľňa again confirmed its position as market leader in retail loans; its market share reached 27.7% at the end of the first quarter of 2018. The main growth driver were housing loans which grew by 12.2% (EUR 0.8 billion in absolute terms) and consumer loans which grew by 10.8% (by EUR 0.2 billion). Loans to corporate clients (including factoring and leasing products) increased by 22.5% y/y (by EUR 0.6 billion) and reached EUR 3.0 billion.

Retail deposits increased from EUR 9.9 billion to EUR 10.5 billion, providing a solid base for financing and room for further growth of the bank. Deposits from customers rose from EUR 11.7 billion to EUR 13.1 billion compared with the first quarter of 2017.