The mid-2001 profit before tax amounts to 3.23 billion, which constitutes a considerable increase in comparison with the same period of 2000. This result can mainly be attributed to provisions for loan losses, which dropped by 63% to CZK 1.65 billion thanks to a better quality of the loan portfolio and the Bank's agreement with Konsolidační banka on guarantees for classified debts. Net operating profit amounted to CZK 11.36 billion, i.e. up by 3% in comparison with the first half of 2000. Net fees and commissions was the strongest growing item in net operating profit, and amounted to CZK 4.03 billion.
Favourable results have also been achieved in retail banking: in comparison with the corresponding period of 2000 consumer credits went up by 22% to CZK 5.09 billion, and mortgage loans increased also by 22%, to CZK 12.45 billion. The Bank experienced a substantial growth in its direct banking business - the number of phone banking clients went up from 36,000 to 153,000, while as many as 12,000 clients, who altogether made 335,000 transactions, had signed up for Internet banking by mid-2000 although this service was only introduced in April. Through PC banking, a total of 4.4 million transactions were carried out over the first six months of this year.
Over the first half of 2001 standard and monitored loans increased to CZK 110.6 billion, from 97.9 billion at the end of last year. Loans subject to special supervision declined from CZK 49.8 to 42.9 billion over the same period of time. Total loans to clients amounted to CZK 153.5 billion.
The Bank's total assets did not change noticeably in the first half of 2001 and amounted to CZK 401.5 billion on 30 June 2001. Capital adequacy was 15.7%, and the Bank's staffing level decreased to 10,275 employees from 10,703 at the end of 2000.
When presenting the quarter-year results Radovan Vávra, Komerční banka's Chairman and CEO, described the black numbers as the beginning of a positive trend: "I am glad that the reported results have validated my expectations and prove that Komerční banka has set out on the right course," added Vávra when commenting on the results presented.
KOMERČNÍ BANKA PROFIT AND LOSS STATEMENT IN ACCORDANCE WITH IAS (in CZK thousands)
|Net interest income
|Net fees and commissions
|Net income from subsidiaries and associates
|Income from fully written-off loans
|Net operating profit
|Depreciation and other provisions
|Restructuring costs and reserves
|Profit/loss before provisions for loan losses
|Provision for loan losses
|Profit/loss from ordinary activities
|Profit/loss for the period