According to an interview in Bloomberg with Jack Stack, CEO of Ceska
Sporitelna, the bank annual net earnings growth should accelerate by
15% to 20% in the next 3-5 years. The CEO expects good deposit growth and
further increase of mortgage lending in Czech Republic as well as good
credit quality. Jack Stack has also stated that CS expects 5-6% y/y fee
income growth, 10% - 12% y/y total revenue growth and some 20% y/y loan
growth in 2007.
Our view:
We expect the news to have a neutral impact on the stock price as in
our opinion the optimistic outlook for Ceska Sporitelna is already priced
in by the market.