The Czech branch of Italian UniCredit Bank on Wednesday reported a net profit of Kč 1.115 billion for 2011, down 62 percent on the previous year. At the same time the bank said that if it had not been for the write-off of Greek bonds, its net profit would have risen by over 11 percent to Kč 3.35 billion.
On December 31, 2011, UniCredit held Greek bonds with a nominal value of €120 million (Kč 3.1 billion), but due to the write-off, their actual value was slashed by Kč 2.2 billion.
According to the results, the value of assets held by the Czech branch of UniCredit rose by almost seven percent on the year to Kč 288.7 billion, while the total amount of credit extended to clients rose by 5.6 percent to Kč 182 billion. At the same time, the volume of client deposits rose by 2.8 percent to Kč 178.2 billion.
The bank’s total operating income in 2011 reached Kč 10.44 billion, up 11 percent on the year. Discounting the Greek bond write-off, the bank reports that its loan-loss provisions decreased by 21.1 percent on year on year in 2011 to Kč 1.248 billion.
The Greek bond write-off aside, the bank claims it is on course to consolidating its position on the Czech market.
“We achieved impressive results, as evidenced by the increases in customer loans and deposits resulting from our medium-term strategy of expanding services for private individuals and small and medium enterprises,” Jiří Kunert, director of UniCredit in the Czech Republic, said in the press release announcing the results.
“UniCredit Bank Czech Republic also affirmed its strong position in the corporate and private banking sectors. Our dynamics provide a solid basis for further strengthening our Bank’s position in the coming years,” he said.
