Ceska sporitelna is due to release its 9M IAS consolidated results on Monday, November 12, before the market opens. We believe that CS will continue performing in line with its 6% ROE target for 2001, as it had done to H1 2001. We expect net fee income to remain the main revenue driver in Q3; however, a y-to-y drop in trading results will mostly offset the revenue increase. Operating revenues should thus grow 14% y-to-y. Given a significant increase in operating costs (partially on the account of the ongoing transformation process at the bank), we expect operating profit to stagnate (-0.6%, CZK 4.26 bil.).
Provisioning in Q3 will not, in our opinion, differ remarkably from the bank’s recent provisioning policy (i.e., 2.2% of average client loans). Net profit should reach CZK 1.21 bil. Market consensus has not been available.
(Jan Hajek)