Erste Bank - Ceska Sporitelna announced results for 2003 according to CAS

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Investiční bankovnictví KB

      Ceska Sporitelna, fully controlled by Austrian Erste Bank, announced preliminary unconsolidated financial results for 2003 according to CAS. Total banking revenues improved by 2% from CZK 22.6bn to CZK 23.0bn. Net fees and commission increased by 12% and net interest income rose by 1%, as the increase in loan volume outweighed lower interest rates. Operating profit fell by 4% from CZK 8.4bn to CZK 8.1bn due to higher growth in operating costs driven by higher depreciation. Improving loan portfolio, asset sales and required general provisions release caused that Ceska Sporitelna did not have to create provisions for bad loans. Thanks to this, pre-tax profit rose by 4% to CZK 10.2bn. Net profit reached CZK 7.3bn, which represents an increase of 13% from CZK 6.5bn in 2002.

       We consider the news neutral for Erste Bank for two reasons. Net profit is fully in line with the recent statement of Ceska Sporitelna’s management. Secondly, the market follows figures according to IFRS, which should be released on 17 March.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.