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PPF Banka
PPF Banka

PPF banka announced financial and operating results for 2020 with net profit CZK 1.13 billion

PPF banka

4/5/2021 | 2 minutes to read

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Key highlights in 2020

Net profit CZK 1.13 billion
Total capital ration +6,2 pp to 24.5%
Total assets CZK 169.72 billion
Securities trading volume CZK 430.6 billion
Record operating income CZK 4.27 billion
Net interest income  CZK 3.29 billion

In 2020, the Bank recorded CZK 4,271 million operating income, its highest ever.

Owing to the overall results, shareholders’ capital rose almost 8% to CZK 15,414 million.

Impairment losses were one of the most important items of last year’s results compared to the same period in the year earlier. While operating expenses remained stable, the decline in assets value was the main driver in the year-on-year net profit decline. The creation of loss allowances reflects the pandemicinduced deterioration of the country’s macroeconomic environment. This affected both performing and non-performing loan exposures to clients and the impairment of some financial instruments when accounted at their fair value in other comprehensive income.

Net interest income was CZK 3,292 million, affected mainly by a reduction in interest rates. Net fees and commission income in 2020 was up CZK 79 million. The Bank recorded an outstanding comprehensive net income of CZK 759 million from financial operations in 2020.

Net Profit in 2020

1.13

bilion CZK

“Despite a challenging year under the pandemic, we succeeded in a net profit of CZK 1.13 billion, boosting the Bank’s capital ratio to 24.7%, and also creating robust allowances against potential loan losses,” said Petr Jirásko, chairman and CEO of PPF banka.

When the Czech Republic issued record volumes of government bonds in 2020, PPF banka strengthened its already solid role as the country’s key securities trader on capital markets. “We assisted the Czech state in underwriting CZK 108 billion in government bonds. We are proud to have achieved second slot in the Czech Finance Ministry’s ranking of primary dealers of Czech government bonds,” said PPF banka CEO.

In the corporate banking segment, PPF banka specializes in project, export, and acquisition financing. This requires a strong position in cross-border payment services. “Therefore, we became a direct participant in the TARGET2 payment system,” said PPF banka CEO, referring to the settlement process for large payment volumes at the European Central Bank, national central banks, and commercial banks.

Last year, PPF banka actively participated in the distribution and processing of government assistance to companies adversely impacted by the pandemic. “For the state’s COVID III a COVID Plus support programs, we have earmarked CZK 5.5 billion,” said the Bank’s CEO.

On the Bank’s investments in digital technologies, the CEO said: “We continue to apply modern tools that meet all required security standards. They not only make our work less difficult, but they also make the use of our services easier for clients, for whom we have also revamped our internet banking.”

The Bank’s balance sheet totalled nearly CZK 170 billion in 2020. In assets, the year-on-year difference resulted mainly from reverse repo operations with the Czech central bank. The Bank’s sources to finance its overall liabilities, namely its exposure to clients, remain stable and are spread evenly between demand and term deposits. The overall change in volume of liabilities therefore mainly reflects a change in business opportunities after a fall in interest rates on repo business with financial institutions.

Financial Indicators

Assets in millions of CZK 2020 2019
Cash and cash equivalents 90 096 156 713
Financial assets at fair value through profit or loss 19 291 7 166
Financial assets at fair value through other comprehensive income 19 314 17 551
Loans and advances to banks 4 130 3 636
Loans and advances to customers 35 745 41 109
Investments in subsidiaries 237 132
Other assets 910 651
Total assets 169 723 226 958

Equity and liabilities in millions of CZK 2020 2019
Deposits from banks 1 933 25 743
Deposits from customers 131 462 172 805
Debt securities issued 3 122 3 536
Financial liabilities at fair value through profit or loss 16 710 9 054
Other liabilities 1 082 1 525
Issued capital 769 769
Other components of equity 14 645 13 526
Total equity and liabilities 169 723 226 958

Income statement in millions of CZK 2020 2019
Net interest and similar income 3 292 4 112
Net fee and commission income 209 130
Net income from financial operations and dividend income 759 (433)
General administrative expenses (817) (907)
Impairment gains / (losses) (1 750) 74
Other operating profit or loss (382) (347)
Income tax expense (178) (541)
Net profit for the year 1 133 2 088

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