VUB Group retail loan portfolio up by 11%

Bratislava, 5.3.2010 – VUB Group, a member of the Intesa Sanpaolo Group, earned in 2009 operating profit of EUR 253 mil., slightly above 2008 and net profit of EUR 141,7 mil., 15.9% below 2008. The Group’s net loan portfolio reached EUR 5.9 bil., representing 3.5% y-o-y growth. Retail loans went up by 10.9%.

VUB Group revenues in 2009 reached the level of EUR 481.2 mil., representing moderate 3.9% decrease y-o-y. Revenue performance was supported especially by 10.9% y-o-y growth of retail loans, which however could not totally offset the loss of revenues resulting from the EURO adoption and the worsening of the Slovak economy.

The consolidated operating profit reached EUR 253.1 mil., slightly above 2008, thanks to 8% y-o-y drop in operating expenses, achieved through higher cost efficiencies Group-wide, which led to a significant drop of cost/income ratio to 47.4%, from 49.5% the year before.

Profit before tax reached level of EUR 160.5 mil., recording drop of 22.5% y-o-y due to the increased cost of risk arising from the recessive economic cycle.

“Likewise the whole Slovak banking system, our financial results were affected by the impact of the Euro introduction and the economic environment. However, we still managed to increase our loan volume and to achieve a remarkable profit. The good quality of our loan portfolio and our strict operating cost management also positively contributed to our results. Thus, today VUB continues to be one of the healthiest and most efficient banks in Slovakia, with a strong capital base and a sound liquidity position,’’ said Ignacio Jaquotot, CEO of VUB bank

The volume of VUB Group net loan portfolio reached EUR 5.9 bil. representing 3.5% actual y-o-y growth. Deposits reached volume of EUR 6.6 bil., representing 18.7% y-o-y decrease, mainly due to expected outflow of Public Sector deposits and partially to shift of retail deposits to the bank´s asset management operation, which increased its volumes by almost 39% y-o-y. In any case, the Group’s Loan/Deposit Ratio is still standing at the comfortable level of 89%.

The VUB Group comprises VUB bank and its 100% subsidiaries: Consumer Finance Holding, VUB Asset Management, VUB Factoring, VUB Leasing and Recovery. The consolidation perimeter also includes VUB Generali DSS (50% share).