Top line came in line with expectations with total revenues at CZK 22.7bn, operating profit at CZK 10.9bn.
Net profit reached CZK 9.3bn, about CZK150m above our and market expectations.
As expect the 2004 FY result confirmed the upward trend in revenues seen at the 9M results. Net interest income increased to CZK 12.7bn (+6.9% y/y) and net fees to CZK 8.9bn (+2.0% y/y).
Higher revenues have been driven by slightly higher interest rates (the 2W repo rate increased by 25 bps in June and in August), rising loan volumes and rising number of clients (+7% y/y). The volume of outstanding mortgages to individuals increased by 40% to CZK 31bn, and outstanding consumer loans amounted to CZK 10.6 billion, a 17% increase. Dynamic growth continued also in financing of small and medium enterprises; the volume of outstanding loans grew by 25% to CZK 46bn. Total loans to large corporations rose by 3% to CZK 67.6bn years on year.
Operating costs remained stable at CZK 11.7bn. Personnel costs declined 9% (more than we expected), while general administrative expenses increased 9.9% (mainly due to higher VAT and higher contributions to the Deposit Insurance Fund) and depreciation by 12%.
Operating profit improved 9.2% due to higher revenues and efficient cost control. The cost income ratio thus improved to 51.9%.
As expected net profit was strongly impacted the release of general reserves, by the profit from the sale of the bank’s stake in MUZO and by a lower CIT (down from 31% to 28%). The total net provision charge for the full year amounted to a positive CZK 1.3bn (release of general tax-deductible provisions of CZK 2,375 million, creation of provisions on loans of CZK 818m, provisions for impairment of securities of CZK 85m connected solely to the CDO portfolio development, and CZK 131m of provisions fro legal and operational risk).
We expect the bank to pay another strong dividend of CZK 200 per share this year, despite the management’s official dividend policy of paying out 30%-35% of recurring earnings.
No conference call / analysts’ meeting is planned for today. Audited FY 2004 IFRS results will be released on March 29.
|
IFRS unconsolidated, preliminary (CZK m)
|
|
|
FY04
|
FY03*
|
change
|
Patria forecast
|
Consensus
|
|
Net interest income
|
12,763
|
11,937
|
6.9%
|
12,687
|
12,700
|
|
Total operating revenues
|
22,717
|
21,751
|
4.4%
|
22,639
|
22,730
|
|
Operating costs
|
11,792
|
11,728
|
0.5%
|
11,859
|
-
|
|
Operating profit
|
10,925
|
10,023
|
9.0%
|
10,780
|
10,900
|
|
Provisioning
|
1,341
|
2473
|
-45.8%
|
1428
|
-
|
|
Income tax
|
3,853
|
4,021
|
-4.2%
|
3,826
|
-
|
|
Net income
|
9,302
|
9,169
|
1.5%
|
9,135
|
9,160
|
|
EPS (CZK)
|
245
|
241
|
1.5%
|
240
|
241
|
|
ROE
|
22.1%
|
25.0%
|
-
|
22.4%
|
-
|
|
Dividend / share (CZK)
|
n.y.a.
|
200
|
-
|
200
|
-
|