Ceska sporitelna is due to release its full-year 2001 IAS consolidated results on Friday, March 22, before the market opens (8:30 am CET). We believe that CS’s 2001 net profit will increase to CZK 1.63 bil. with an ROE of near 7% on the year. We expect net fee income to remain the main revenue driver of operating revenues, which we forecast to increase by 15% y-to-y. Provisioning will be, in our opinion, in line with the bank’s recent provisioning policy (i.e., 1.8% of average gross client loans). Market expectations vary from CZK 1.50 bil. to CZK 1.75 bil. Our projections are:
Full-year 2001, IAS,consolidated results
CZK mil. 2001E 2000(non- change
restated)
Operating revenues 21,937 19,112 14,8%
Operating expenses -15,575 -13,508 15,3%
Operating result 6,362 5,604 13,5%
Other results
(exceptionals) -1,448 -1,387 4,4%
Profit before provisions 4,914 4,217 16,5%
Provisions -2,543 -3,217 -21,0%
Pretax profit 2,371 1,000 137,1%
Tax and minority
interests -739 -959 -22,9%
Net profit 1,632 41 3879,6%
(Jan Hajek)