Air Bank reports a profit of CZK 603 million for 2017, nears 600,000 clients in only six years
Unaudited results of Air Bank a.s. on a standalone basis as at 31 December 2017 according to IFRS:
Air Bank delivered another positive period as it reported a net profit of CZK 603 million for 2017, up by 147% compared to 2016. The bank continued to acquire new customers throughout the year and increased the volume of loans it provided. In addition, the profit calculation benefited from the remeasurement at fair value of investments from the first half of the year.
“We have now turned a profit for the fourth consecutive year. We continued to increase both the overall number of clients and the range of services they use, which translated into a strong performance for the bank. This is testament to the fact that we are doing our work well. Our ambition is to be truly valued for our service by our clients; when they use our services more and more often, then we know we are delivering on that ambition.” says Michal Strcula, Air Bank’s Chief Executive Officer.
In 2017, Air Bank’s client base grew by almost 82,000 year-on-year to 596,966. In January 2018, the number of clients exceeded 600,000. Last year, Air Bank also offered its new and current clients additional services such as new mortgages, travel insurance and an improved mobile application.
Air Bank continued to invest into a considerable extension of its ATM network, more than doubling its size to over 320 ATMs at the end of 2017. The capital expenditure on the installation of new ATMs was reflected in an increase of the bank’s administrative and overhead costs by 14% to CZK 1.3 billion.
The number of current accounts rose by almost 117,000 to a total of 639,826, with the volume of deposits up 13% to CZK 89.5 billion. The volume of loans in Air Bank’s portfolio grew by 19% to CZK 38.9 billion, and operating income net of credit losses increased by 41% year-on-year to CZK 2.1 billion.
Air Bank’s total assets rose by 13% year-on-year to CZK 98.1 billion at the end of 2017. The bank’s equity increased by 14% to CZK 6.2 billion.
| 31 December 2016 | 31 December 2017 | Y-o-Y change | |
|---|---|---|---|
| Net profit | CZK 244.3 m | CZK 603 m | 147% |
| Operating income net of credit losses | CZK 1.5 bn | CZK 2.1 bn | 41% |
| Administrative and overhead costs | (CZK 1.2 bn) | (CZK 1.3 bn) | 14% |
| Number of clients | 515,192 | 596,966 | 16% |
| Number of current accounts | 522,863 | 639,826 | 22% |
| Number of savings accounts | 337,841 | 384,667 | 14% |
| Volume of deposits | CZK 78.9 bn | CZK 89.5 bn | 13% |
| Volume of loans | CZK 32.6 bn | CZK 38.9 bn | 19% |
| Total assets | CZK 86.8 bn | CZK 98.1 bn | 13% |
| Equity | CZK 5.4 bn | CZK 6.2 bn | 14% |
| Number of employees | 730 | 767 | 5% |
| Number of branches | 34 | 35 | +1 |
| Number of ATMs | 152 | 321 | +169 |
