Slovenská sporiteľňa achieved profit after tax in the amount of EUR 122.6 million in the first half of 2024.
It is a y/y decrease of 12.3%

“The figures for the first half of the year are confirming our strategy to run the bank in a way that is stable and prosperous even in a challenging business environment. This is appreciated not only by clients, which is reflected in the growth of the loan portfolio, increased interest in deposits, investments and insurance, but also by the international rating agency Moody's. At the beginning of the summer, it confirmed our rating with a stable outlook. This means that our financial and risk situation is very solid, and our future is also viewed as stable. The prestigious magazine Euromoney named us the best ESG bank in Slovakia, highlighting our responsible business practices. This confirms our strategy to be a leader not only in green transformation but also the approach to our employees, governance and social responsibility,” says Peter Krutil, CEO and CFO, Chairman of the Board of Directors of Slovenská sporiteľňa.

Business performance overview of Slovenská sporiteľňa as of 30 June 2024

Net interest income went up by 7.6% y/y from EUR 256.4 million to EUR 275.8 million. The increase of net interest income is mainly the result of growing loan portfolio. On the other hand, we have been increasing interest rates on deposit products which translated into an increase of customer deposits. As a result, interest expenses for deposits and other financial liabilities went up y/y.

Net fee and commission income increased by 12.5% y/y from EUR 100.7 million to EUR 113.3 million. Income related to investments into mutual funds, commissions from brokerage of insurance, and an increasing number of payment transactions had a positive effect on net fee and commission income.

The bank recorded a net trading profit of EUR 8.3 million (it was EUR 11.0 million in 2023) which is mainly attributable to derivative transactions.

Operating expenses went up by 8.6% y/y to EUR 175.1 million (in 2023 it was EUR 161.3 million). Personal expenses increased by 8.1% y/y mainly because of wage growth caused by inflation. Other administrative expenses grew by 12.2% mainly because of increased IT costs as a result of investments in digitalisation and modernisation.

Operating profit went up by EUR 15.1 million, accounting for an increase of 7.2% y/y. Cost income ratio increased slightly to 43.8% compared to the previous year.

The bank recorded a net impairment loss from financial instruments in the amount of EUR 22.8 million in 2024, which is approximately at the level of the same period in 2023. The share of non-performing loans on total loan volume increased from 1.6% to 1.9% while their coverage with provisions decreased from 122.4% to 102.1%.

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.

The volume of loans products to customers (including loans, leasing and factoring) increased by 2.6% y/y and achieved EUR 19.0 billion. Retail loans grew by 2.8% (EUR 300 million). Housing loans grew by 1.8% (EUR 200 million in absolute terms) and consumer loans went up by 9.4% (EUR 140 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 June 2024.

Loans to corporate clients (including factoring and leasing products) increased by 1.0% y/y (by EUR 100 million) and reached EUR 6.7 billion. We recorded growth in almost all segments.

Deposits from customers rose from EUR 17.0 billion to EUR 18.1 billion compared with the year 2023.

Current ratings of Slovenská sporiteľňa (as of 30 June 2024)