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UniCredit Bank Czech Republic reports net profit of CZK 2,015 million for first nine months of 2009

• After subtracting one-off income from the sale of HYPO stavební spořitelna (HYST) in 2008, UniCredit Bank Czech Republic's net profit for this year to date shows a decrease of 19.6%.
• The bank's total assets decreased by 7.5%.
• Loans to clients slipped by 3.0% in comparison with the third quarter of 2008.
• Client deposits expanded year to year by 5.0%.
• The bank's equity grew by 6.5% in comparison with the same period of last year, and its capital adequacy rose from10.2% to 13.65%.

UniCredit Bank Czech Republic's profit after tax decreased from CZK 3,298 million (as at 30 September 2008) to CZK 2,015 million (as at 30 September 2009). Jiří Kunert, CEO and Chairman of the Board of Directors of UniCredit Bank Czech Republic, had the following to say: "The Czech economy slipped into recession in 2009, and that has had an influence on the bank's returns. UniCredit Bank stands among the strongest corporate banks, and so the decline in exports, industrial production, and construction is naturally reflected in a decline in the bank's revenues. The risk among business clientele has worsened, which has forced Czech banks to boost their provisions. And our bank is no exception in that regard. The provisions increase was high, but, in comparison with the broader market, our share in classified loans has remained below the average for the banking sector.

The bank has only a small exposure to retail banking, and especially to that retail client segment with the highest margins and fees. Revenues in this area, therefore, are too small a part of the bank's total revenues to offset the decline in corporate banking. On the other hand, this is not creating for us a large risk from possible negative developments in retail banking. Despite these matter-of-fact influences, the bank achieved good profitability through the first nine months due also to strict costs management."

Items in the income statement
UniCredit Bank Czech Republic's net interest, fees and commissions fell to CZK 6,529 million, which represents a decline of 2.2% in comparison with the same period in the previous year (Q3 2008: CZK 6,674 million).

General operating expenses fell by 6.4% to CZK 2,899 million (Q3 2008: CZK 3,098 million).

Net creation of provisions against classified loans grew year on year during Q3 from CZK 575 million in 2008 to CZK 1,495 million this year.

Balance sheet
As of 30 September 2009, UniCredit Bank Czech Republic's total assets amounted to CZK 258,691 million, which represents a decrease of 7.5% compared to the figure from 30 September 2008 (CZK 279,515 million).  

The bank's equity grew compared to Q3 2008 by 6.5% to CZK 28,763 million (Q3 2008: CZK 26,998 million).

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