For the first quarter of 2001 Komerční banka recorded a profit before the provisions for loan losses and income tax of CZK 2.5 billion. This is an improvement of 7.3% on the result for the first quarter of 2000.
The reason for the positive results is primarily the continuing increase in net interest income, which against the same period last year rose by almost 7% and the generation of more than 13% higher net fees and commissions. The positive effects of the agreement signed at the end of last year with Konsolidační banka could also be felt in the lower creation of reserves for loan losses. The agreement guaranteed Komerční banka's risk receivables.
The volume of total assets remains stable in comparison with the end of last year, amounting to CZK 401.7 billion. For the first quarter of 2001 the Bank recorded an increase of 1.3% in the volume of loans to clients, the final figure totalling CZK 128.6 billion.
Reductions continue to be made in the number of employees. During the first quarter the number of employees fell by 207 to 10,496.
According to the Chairman of the Board of Directors and Chief Executive, Radovan Vávra, the first quarter results fully reflect the beneficial impact of the changes implemented in the middle of last year by the new management. 'The move back into the black makes me very happy. The result is not a matter of chance but rather the beginning of a positive trend. The changes that we have set under way in the Bank are beginning to bear fruit,' was his reaction to the results.
Komerční banka's Profit and Loss Statement According to International Accounting Standards (in CZK million)
| |
31 March 2001
(Unaudited) |
31 March 2000
(Unaudited,
Restated) |
| Interest income |
6,890 |
6,682 |
| Interest expense |
(3,850) |
(3,837) |
| Net interest income |
3,040 |
2,845 |
| Net fees and commissions |
1,876 |
1,659 |
| Dealing profits / (losses) |
340 |
693 |
| Other income |
82 |
145 |
| Net operating profit |
5,338 |
5,342 |
| Administrative expenses |
(2,304) |
(2,129) |
| Depreciation and other provisions |
(486) |
(838) |
| Profit / (loss) before provision for loan losses and income taxes |
2,548 |
2,375 |
| Provision for loan losses |
(736) |
(1,800) |
| Profit / (loss) before income taxes |
1,812 |
575 |
| Income taxes |
(500) |
(1,600) |
| Net profit / (loss) for the period |
1,312 |
1,025 |