Net profit increased 54% to EUR 544.5m, compared to market and our expectation of EUR 521m, corresponding to an EPS of EUR 2.28. All revenue items showed a significant improvement. Net interest income was up 4.2% to EUR 2,695.5m, net fees increased by 14.5% to EUR 1,141m and trading income rose almost 1% to EUR 216.5m. Operating costs were also better than expected and increased by only 5.4% to EUR 2,592.9. Provisioning remained stable y/y and came in line with expectations. Pre-tax profit improved 39% to EUR 1,061m. As revenues are rising faster than costs the cost/income ratio improved to 63.4% from 64.2%. ROE soared to 18% from 13.7%. The bank confirmed that the proposed dividend for this year would amount to EUR 0.50 / share, up from EUR 0.38 / share. The bank also reiterated its 2005 target of a net profit of at least EUR 600m. The contribution to the bottom line from the central European subsidiaries rose to almost 60% from 53% in 2003. The largest unit, Ceska sporitelna, posted a net profit of CZK 8.65bn, in line with expectations, and its share in the net profit of the group improved to 38%.
A conference call is scheduled for today at 3:30pm CET (2:30pm UK). The dial-in No. is +44 (0) 207 784 1017.
IFRS consolidated (EUR m)
FY04 FY03 change FY04E Patria Consensus
Net interest income 2,695.5 2,586.8 4.20% 2,687.7 2672
Total revenues 4,053.1 3,830.9 5.80% 4,030.7 4,021.9
Operating costs 2,592.9 2,460.8 5.37% 2,627.9 -
Operating profit 1,495.0 1,370.1 9.12% 1,438.4 -
Provisioning 406.2 406.4 -0.05% 408.9 -
Pre-tax profit 1,061 761.6 39.30% 1,015.6 1,017.0
Net income 544.5 353.3 54.12% 520.6 521
EPS (EUR) 2.28 1.49 53.54% 2.16 2.16
Dividend per share(EUR) 0.5 0.38 31.58% 0.50 -