Slovenská sporiteľňa achieved profit after tax in the amount of EUR 198.5 million in the third quarter of 2024. It is a y/y decrease of almost 10%
"New mortgages and consumer loans unexpectedly reached their peak this year in July and August. This is mainly due to ECB policy, which allowed us to lower interest rates. However, we are still significantly behind other years, as we can see in the 2% growth in the balance sheet. I take the results of the summer months as a signal that the credit market is starting to pick up again. I am also pleased with the 5% growth in deposits - the Slovaks are returning to deposits and fixed-term deposits in particular. In corporate banking, we have good news for our clients – our strategic partnership with Crowdberry, which will allow us to expand our services for our entrepreneurs. And this is also how we want to support new technologies or digitalisation in investing," says Andrea Blažová, Financial Director of Slovenská sporiteľňa.
Financial highlights as of 30 September 2024 (y/y comparison)
Consolidated unaudited business results of Slovenská sporiteľňa as of 30 September 2024 according to International Financial Reporting Standards (IFRS).
- Net interest income went up by 7.8% from EUR 388.6 mil. to EUR 419 mil.
- Net fee and commission income increased by 11.5% from EUR 153.9 mil. to EUR 171.7 mil.
- Operating profit went up by 10.4% from EUR 317.5 mil. to EUR 350.7 mil.
- Net profit after tax reached EUR 198.5 mil. (2023: EUR 219.3 mil.)*
- Volume of loans and advances to customers grew by 2.0% from EUR 18.3 billion to EUR 18.6 billion
- Deposits from customers increased by 5.1% from EUR 17.3 billion to EUR 18.2 billion
- Cost income ratio reached 42.4%
- Capital adequacy reached 20.7% and considerably exceeds the limit stipulated by law (according to ECB/NBS, Basel III and IRB approach)
- Loans to deposits ratio went down from 105.6% to 102.5%
* From January 2024, the bank is required to pay a so-called "special levy", which has a significant negative impact on net profit after tax. The annual levy rate set by the legislation for the financial year of 2024 is 30%. On the other hand, the bank is not obliged to contribute to the National Resolution Fund in 2024, which only partially compensates for the introduction of the special levy.
Business performance overview of Slovenská sporiteľňa as of 30 September 2024
Net interest income went up by 7.8% y/y from EUR 388.6 million to EUR 419 million. The increase of net interest income was mainly supported by the growing loan portfolio and, partially, by the increase of interest income from deposits in the ECB. On the other hand, the volume of deposit products (mainly term deposits) and debt securities, also increased y/y, which translated into an increase of interest expenses for deposits and other financial assets.
Net fee and commission income increased by 11.5% y/y from EUR 153.9 million to EUR 171.7 million. Income related to investments into mutual funds, commissions from brokerage of insurance, as well as income from payment services due to higher volumes of payment transactions had a positive effect on net fee and commission income.
The bank recorded a net trading profit of EUR 14.2 million (it was EUR 15.9 million in 2023) which is mainly attributable to derivative transactions.
Operating expenses went up by 6% y/y to EUR 258.1 million (in 2023 it was EUR 243.5 million). Personal expenses increased by 7.1% y/y mainly because of wage growth caused by inflation. Other administrative expenses grew by 6.7% mainly because of increased IT costs as a result of investments in digitalisation and modernisation.
Operating profit went up by EUR 33.2 million, accounting for an increase of 10.4% y/y. Cost income ratio decreased from 43.4% in the first 9 months of 2023 to 42.4% in the corresponding period of 2024.
The bank recorded a net impairment loss from financial instruments in the amount of EUR 22.5 million in 2024, compared to a loss of EUR 28.4 million in 2023. The share of non-performing loans on total loan volume increased from 1.7% to 1.9% while their coverage with provisions decreased from 115.9% to 100%.
The volume of loans products to customers (including loans, leasing and factoring) increased by 2.1% y/y and achieved EUR 19.1 billion. Retail loans grew by 2.8% (EUR 300 million). Housing loans grew by 2.1% (EUR 200 million in absolute terms) and consumer loans went up by 7.7% (EUR 120 million). Slovenská sporiteľňa again confirmed its position as market leader in retail loans; its market share in retail loans reached 24.5% at the end of September 2024.
Loans to corporate clients (including factoring and leasing products) increased by 0.8% y/y (by EUR 50 million) and reached EUR 6.8 billion.
Deposits from customers rose from EUR 17.3 billion to EUR 18.2 billion compared with the year 2023.
Current ratings of Slovenská sporiteľňa (as of 30 September 2024)
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Slovenská sporiteľňa – Contact for media:
Marta Cesnaková; tel.: +421 2 48 62 43 60; cesnakova.marta@slsp.sk
Erste Group – Public Relations:
Christian Hromatka; tel,: +43 501 00 61 3711; christian.hromatka@erstegroup.com
Erste Group – Investor Relations:
Thomas Sommerauer; tel.: +43 501 00 17 326; thomas.sommerauer@erstegroup.com