VUB Group’s before tax profit up by 17.3%

Bratislava, 31.1.2007 – According to the preliminary results for 2006 VUB Group earned a consolidated net profit of SKK 3.7 bil. and an operating profit of almost SKK 4.9 bil. representing a 11.5% y-o-y rise.

Two major factors impacted revenues of VUB Group in 2006: a significant rise in mortgage and consumer finance volumes and a loss in the amount of SKK 871 mil. stemming from so-called restructuring bonds repaid by the government. In this light, the Group considerably increased its revenues from retail banking and consumer finance activities. “Last year challenged us in terms of changing the structure of our revenues and also increasing efficiency of our operating platform. We aspire to be the most efficient bank on the market in this respect”, said Mr. Tomas Spurny, CEO of VUB. The bank’s operating expenses dropped by almost 6% i.e. SKK 409 mil. mostly thanks to cost optimization project. The results of the cost structure optimization should be fully manifested throughout 2007.

Compared to 2005 total assets of VUB Group grew by 6.3% reaching thus almost SKK 241 bil. The Group´s loan portfolio reached SKK 92.5 bil. representing y-o-y growth of 7.9%. The Group increased the volume of housing loans by 49% to SKK 32.9 bil. and its overall consumer loan portfolio went up by 16% to SKK 13.1 bil. Client deposits reported a significant 10% increase vis-à-vis the end of 2005 standing at SKK 178.9 bil. Retail deposits grew by 24% arriving at a total of SKK 86.1 bil. at the end of 2006.

Selected financial indicators from the consolidated income statement:

In SKK mil.	2006	2005	Change
Net interest income	7,537	7,562	-0.3%
Net fee and commission income	2,640	2,450	7.8%
Operating income	11,844	11,692	1.3%
Operating expenses	-6,532	-6,941	-5.9%
Operating profit before impairment and provisions	4,872	4,371	11.5%
Profit before tax	4,820	4,109	17.3%
Net profit	3,741	3,696	1.2%
Basic earnings per share in SKK	288	285	1.2%
Cost/income ratio	55.1%	59.4%	-4.3%

 
Selected financial indicators from the consolidated balance sheet:

In SKK mil.	2006	2005	Change
Loans to clients	92,522	85,738	7.9%
Deposits from customers	178,856	162,944	9.8%
Assets	240,985	226,802	6.3%

The VUB Group comprises VUB, a.s. and its 100% subsidiaries: Consumer Finance Holding, a.s., VUB Asset Management, a.s., VUB Factoring, a.s., VUB Leasingová, a.s. and Recovery, a.s. In addition, the consolidated data also include VUB´s stakes in VUB Generali DSS, a.s., Slovak Banking Credit Bureau, s.r.o. and Bratislava Stock Exchange, a.s.

VUB is a member of the international banking group Intesa Sanpaolo that operates in more than 40 countries worldwide. The Bank runs 207 retail branches, 35 corporate branches, and 11 mortgage centres across Slovakia. In 2006, VUB was awarded two prestigious international prizes – “Best Bank in Slovakia” by The Banker magazine and “Bank of the Year 2006 in Slovakia“ by Global Finance Magazine.

 

Information for media:
Alena Walterová
Spokeswoman and Head of Press Sub-department
Corporate and Marketing Communication Department
Tel.: +421-2-5055 2130
E-mail: awalterova@vub.sk


Štefan Demovič
Head of Financial Reporting and Accounting Governance
Tel.: +421-2-5055 2502
E-mail: sdemovic@vub.sk