Jan Zika talks to Česká spořitelna's CEO about Erste Group 3Q results and outlook

Česká spořitelna's CEO talks to Jan Zika about Erste Group 3Q results and outlook for the rest of the year. He also comments on the preliminary appointment of Pavel Kysilka as the CEO of Česká spořitelna effective January 2011 and his own appointment to the Board of Directors of Erste Group.
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More info (press release):
Ceska Sporitelna's Q1-3 2010 Operating Result Dropped by 1.8% to CZK 19.86 bn (IFRS); Consolidated Net Profit was Down By 11.5% to CZK 8.54 bn

As of 30 September 2010, Ceska Sporitelna reported an unaudited consolidated net profit of CZK 8.54 bn, according to International Financial Reporting Standards (IFRS). In a year-on-year comparison, this represents a drop by 11.5%, from CZK 9.65 bn. At the same time, its operating result was down by 1.8%, to CZK 19.86 bn.

"Last quarter's results are grounds for optimism. First, the Q3 2010 Operating Profit (CZK 6.882 bn.) was higher than the one from Q3 2009 (CZK 6.844 bn.). At the same time, risk costs decreased and the peak of their growth is over. Most importantly, and to our great satisfaction, our clients' trust in us keeps growing, which is reflected in a further increase of their deposits," said Gernot Mittendorfer, CEO and Chairman of the Board of Directors of Ceska Sporitelna.

Highlights of first three quarters result
Consolidated, unaudited figures, as of 30 September 2010, calculated according to International Financial Reporting Standards (IFRS). Comparisons are made with the results as of 30 September 2009, unless otherwise specified:
* Operating Result was down by 1.8% to CZK 19.86 bn from CZK 20.23 bn.
* Profit Before Tax dropped by 11.6% to CZK 10.78 bn from CZK 12.20 bn.
* Net Interest Income was down by 2.4% to CZK 22.77 bn from CZK 23.32 bn
* General Administrative Expenses dropped in a year-on-year comparison by 3.9%, to CZK 14.09 bn from CZK 14.67 bn
* Total Assets were up year-on-year by 4.1% to CZK 891.76 bn from CZK 856.70 bn
* Loans to Customers were down by 1.6% to CZK 465.13 bn from CZK 472.70 bn
* Retail Loans (Bank only) were up by 1.1% to CZK 259.07 bn from CZK 256.34 bn
* Amounts Owed to Customers (Deposits) increased year-on-year by 4.4% to CZK 677.23 bn from CZK 648.59 bn
* Net Interest Margin Related to average Interest-Bearing Assets dropped to 3.88% from 4.22%.
* Return on Equity (ROE) decreased to 17.4% from 20.7%.
* Return on Assets (ROA) dropped to 1.3% from 1.4%.
* Cost/Income Ratio improved year on year to 41.5% from 42.0%.
* Ratio of Client Loans to Client Deposits dropped to 68.7% from 72.9%.
* Consolidated Capital Adequacy according to BASEL II (according to the CNB) increased to 14.0 % from 12.3% at the end of Q3 2009.
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Further info (Reuters):
Former Czech central banker Pavel Kysilka will take over as chief executive at the biggest Czech bank, Erste Group Bank (ERST.VI) unit Ceska Sporitelna. Kysilka, 52, will take over from Gernot Mittendorfer, who will join Erste Group's board in January, Erste said. Kysilka has been on the Sporitelna board since 2004.

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