- Profit before tax for 2008 of CZK 3.7 billion, a 26.3% increase on 2007
- Customers loan book rose to over CZK 92 billion, up 14.8% compared with 2007
- Credit quality remained high
- Total capital resources stood close to CZK 24 billion as at December 31st 2008 with a capital adequacy ratio of close to 20 %
- Total clients' deposits amounted to more than CZK 67 billion, a 20.2 % increase on 2007
- Number of clients increased by 48,000 compared with 2007 to 959,000
- As of 31st December, GE Money Bank operated 221 branches and 598 ATMs
(Preliminary unaudited figures as of December 31st, 2008 and the period then ended according to the Czech accounting standards.)
In 2008, GE Money Bank, a.s. reported a significant increase in Profit before tax, up 26% versus 2007, driven by strong customer growth and increased demand for both lending and deposit products. Deposit growth at more than 20% was slightly higher than loans growth at 15%. The total customer base also grew by 50 000 reaching almost 960 000 by year-end.
"2008 was a record year for us in terms of deposit growth," said Peter Herbert, Chairman of the Board and CEO of GE Money Bank. "For the first time in GE Money Bank's history, we exceeded one million deposit accounts.
In addition, strong financial performance helped us maintain our capital adequacy ratio close to 20 %, one of the highest amongst the leading Czech banks. Our financial strength, innovative products and world-class risk management have positioned us well to manage the challenges posed by the tough economic environment facing Czech consumers and businesses in 2009. Growing trust in our bank has clearly been a driving force in attracting so many additional customers and we intend to do everything to maintain their trust and the health of our bank."
At the end of 2008, the Bank's total assets reached CZK 99.3 billion, (up 16.4% compared with year-end 2007) whilst total loans grew to CZK 92.3 billion. The bank's assets grew as a result of strong demand for both consumer credit and loans for small and medium-sized enterprises. The unsecured consumer loan portfolio grew by 20% to over CZK 35.9 billion. Loans to small and medium businesses (SME) grew by 10.6 % to CZK 28.1 billion. As at December 31, 2008, total mortgage outstandings reached CZK 25.5 billion, representing growth of 17 % compared with 2007. Credit quality across the whole portfolio remained high.
As at 31 December 2008 customer deposits amounted to nearly CZK 67.5 billion, up by 20.2 % year on year. Growth was driven mainly by the increase in deposits placed by Commercial Banking customers, which rose year-to-year by 32.3 % to nearly CZK 33 billion.
Total capital resources stood at CZK 23.9 billion at the end of 2008, up 14.2 % compared with 31 December, 2007. GE Money Bank maintains one of the highest levels of capital adequacy in the Czech market, with a capital adequacy ratio of close to 20%, or more then twice the required minimum set by the Czech National Bank.
"These figures confirm the healthy growth of GE Money Bank driven by competitive products and excellent service. Our strategy is to provide clients with easier, clearer and more rewarding products and services. We understand our customers and their needs," said Peter Herbert, Chairman of the Board and CEO of GE Money Bank. "This is confirmed by the success of our first innovation in 2009: the Genius Plus savings account. We will continue to pursue our strategy of launching new products and services while setting new standards," he added.
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GE Money Bank (GEMB) ranks among the largest and most stable financial institutions on the Czech market. GEMB serves personal and commercial banking customers through its country-wide network of 221 branches and more than 600 ATMs, as well through market leading internet and telephone banking services.
GE Money Bank has operated in the Czech Republic for over 10 years and has launched a number of innovative products and services on the Czech market. The Bank's market leading internet banking service that includes GE Money Manager for personal finance management.
GE Money Bank is part of GE Capital, the global finance unit of General Electric, which provides a wide array of products and services to consumers, retailers and businesses around the world.
For further information please contact:
Milan Kříž, mobile: +420 602 266 316, tel.: +420 224 442 120, e-mail: [email protected]
Ogilvy Public Relations,
Aleš Kosina, mobile: +420 724 442 909, tel.: +420 221 998 258, email: [email protected]
or media service at www.gemoney.cz
Corporate Communications
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