11. 8. 2010
Maintaining strong liquidity and high capital adequacy ratio, increase in individual clients’ deposits, launching successful mortgage campaign.
LBBW Bank CZ presents its financial results for the first half of 2010. In comparison to the first quarter of 2010, its net interest income increased to CZK 286m, operating profit increased by 9.5% to CZK 15m and net profit for the first six months increased to CZK 28m. The total balance sheet as well as operating costs remained more or less on the same level as in 2009. In y-o-y comparison, LBBW Bank CZ managed to increase clients deposits by 7.9%, whereas just deposits from individual clients increased by 16.5%. This increase is a result of the bank’s long term strategy to offer attractive conditions for deposit products. The capital adequacy ratio of LBBW Bank CZ shows a strong level of 13.67% in the second quarter of 2010.
„Our focus is to maintain strong liquidity and capital base for the planned further growth. Despite the fact that loan portfolio declined, its changed structure provides still sufficient income supporting our strategy to switch from more investment banking approach to classical corporate financing in order to gain universal house-bank-function with corporate clients as we already have in Individual Banking“ said Mr. Gernot Daumann, Chairman of the Board of Directors.
The Bank managed to attract new deposits from individual clients that increased in y-o-y comparison by remarkable 16.5 %. “We were very successful in selling interesting depository products this year. On the top of this, we introduced a new guaranteed structured deposit which selling period finished only on June 30. As we were rather surprised by the high demand for this type of product, we plan to offer more similar products with focus on capital protection also in the near future”, said Mr. Henrik Pregel, Board Member responsible for Individual Banking. “We were also very successful with the mortgage business recently and this will be shown in our results later this year. The increased demand from individual clients is a positive sign of market stabilisation”, adds Mr. Pregel.
| Results in mn CZK | |||
| LBBW Bank CZ a.s. | 30.6.2010 | 31.3.2010 | 30.6.2009 |
| Liabilities/due to customers | 18 844 | 19 343 | 17 465 |
| Loans and receivables/due from customers |
19 327 | 19 603 | 22 186 |
| Individual banking clients' deposits |
12 753 | 13 306 | 10 941 |
| Total assets | 28 302 | 28 739 | 28 381 |
| Net Interest Income | 286 | 142 | 337 |
| Total Net Income | 379 | 196 | 423 |
| Operating Cost (incl.depr.) | 363 | 182 | 362 |
| Operating profit | 15 | 14 | 61 |
| Net profit after tax | 28 | 23 | -374 |
| Equity | 2 794 | 2 794 | 3 166 |
| Capital adequacy | 13,67 % | 13,41 % | 13,60 % |
Press release for download: LBBW Bank CZ reports net profit of CZK 28m for the first half of 2010