This report analyses the performance of PPF Banka for the 2Q2019. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the Bank.
The key highlights are:
Revenues increased 14.4% yoy to CZK 1,016 mil in the second quarter of 2019. Interest income formed 89.4% of total revenues with the net interest margin increasing 0.32 pp to 1.81% of total assets. Fees added a further 5.39% to total revenue generated in 2Q2019, down from an average of 5.48% as seen in the previous two years.
Operating costs grew by 58% yoy to CZK 290 mil, so cost to income ratio reached 28.5%, up by 33.6% compared to the previous two years. Staff accounted for 37.2% of total operating expenditures. At the end of second quarter of 2019, PPF Banka operated a network of 2.00 branches and 232 employees.
Loans and deposits dropped by 4.22% and 13.4% qoq respectively, so loan to deposit ratio reached 19.0% at the end of 2Q2019. That’s down from 21.2% the previous year. Equity reached 6.15% of assets and capital adequacy ratio amounted to 16.6% at the end of the second quarter of 2019.
NPLs were 9.62% of total loans at the end of the quarter. Provisions covered 31.8% of non-performing loans
When compared to selected peers, PPF Banka was 1.25 pp less profitable in terms of ROE, achieved 10.8 pp better cost efficiency when measured by cost to income ratio and grew its loans by 6.71 pp slower based on a last year comparison.
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