* Operating profit[1] in the first half of 2009 exceeded CZK 2.9 billion, a year-on-year increase of 13.5%
* Clients' deposits grew by 56% over the prior year, to CZK 102.1 billion
* Loans to clients exceeded CZK 100 billion for the first time, up 17.8% on prior year
* Equity and retained earnings stood close to CZK 22 billion and the Bank's strong capital adequacy ratio of 17.9% continues to be one of the highest in the market
* Number of clients rose to over one million for the first time, increasing year-on-year by 11 % to 1,026,505
(Unaudited figures valid as of June 30, 2009 according to the Czech Accounting Standards)
GE Money Bank, a.s., reported operating profit of CZK 2.9 billion in the first half of 2009, up 13.5% year-on-year. The bank's loan portfolio grew 17.8% to CZK 103.3 billion whilst total deposits grew 55.8% to CZK 102.1 billion vs. the same period in 2008. These results confirm continuing strong operating performance despite a weakening economy and higher levels of unemployment.
"In the second quarter of 2009 we continued to see significant growth in savings balances and in term deposits. We are very pleased with the overwhelming customer response to our new Genius Savings Account, which has brought us more than 54,000 new clients since we launched it in February," says Peter Herbert, Chairman of the Board of Directors and Chief Executive Officer of GE Money Bank.
"As a result, for the first time in our history our customer numbers exceed one million and deposit balances exceed CZK 100 billion. Total loans also exceed CZK 100 billion and we continue to apply prudent and responsible lending standards."
The bank's total assets stood at over CZK 128 billion (up 38% year-on-year). The main drivers of this increase were growth in consumer loans, and the Bank's strong liquidity position, which resulted in higher money market investments.
Net profit for the period fell year-on-year by 19.6% to CZK 1.2 billion, primarily driven by increased credit losses and reserves for non-performing loans (NPL)[2]. NPL coverage remained high at 86% reflecting our continued emphasis on sound risk management given the tough macroeconomic environment. Total NPLs as a proportion of total loans increased slightly to 8.1% (prior year 7.4%), indicating continued sound portfolio quality.
Total capital resources stood at nearly CZK 22 billion as at 30 June 2009. GE Money Bank maintains one of the highest levels of capital adequacy on the Czech market. The Bank's CAR of 17.9% as of 30th June, 2009 is more than twice the required minimum set by the Czech National Bank.
"We expect our customers and the banking industry as a whole, to face continued difficult economic conditions into 2010. However, we believe that our world class risk management practices and our strong liquidity and capital position mean that we are well positioned at this stage of the economic cycle. We are continuing to position the Bank for future growth by investing in innovative products and services and in expanding our distribution reach," adds Peter Herbert.
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 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.
[1] Operating profit represents profit before tax, loan loss and other provisions and write-offs.
[2] Non-performing loans represent loans where a repayment is more than 90 days overdue.
For further information please contact:
Markéta Dvořáčková, mobile:+420 724 356 358, tel.:+420 224 442 120, email:[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
[email protected]
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