Financial Results 2015

| 30.03.2016

Tatra banka Group closed the year 2015 with a consolidated profit of € 120.56 mil. Loans to customers grew approximately by 13% with a decrease of non-performing loans ratio. Also, client deposits grew significantly by almost 19%.

“The year 2015 was extremely successful in my view. Tatra banka achieved a very good financial result also in the environment of low interest rates due to a significant increase of client deals and concurrently low risk costs. We introduced numerous useful new products with the aim to simplify client´s life in line with the promise of the Tatra banka brand – to be a leader in innovations. First time in history we succeeded to cross the limit of 800 thousand clients which would not have been possible without additions of Raiffeisen banka,” said Michal Liday, Tatra banka CEO and Chairman of the Board of Directors.

“Tatra banka continues to prove that it fulfils even the most demanding expectations of its clients which was recognised also by awards from renowned foreign institutions. Private banking confirmed its leadership position in Slovakia with the award of Best Private Bank from World Finance, The Banker and Global Finance. The last mentioned magazine also awarded our digital banking and communication on social networks as the best in Central and Eastern Europe. Our website design was awarded as the best design globally yet in a strong competition of banks, “ added Tatra banka CEO.

Key financial indicators
Consolidated profit of Tatra banka Group after tax grew by 5.2% year-on-year from € 114.64 mil.
in 2014 to € 120.56 mil. Higher profit ways mainly achieved by lower provisions for impairment losses. Decrease of operating revenues and increase of operating expenses lead to an increased cost and income ratio to 52.8% from the level of 49.9% last year.

Development of revenues and costs
Despite significant growth of the loan portfolio, net interest income decreased due to continuing low interest rates, intense competition environment and change in reporting of a portion of loan fees from interest income to fee income. Record low interest rates of mortgage loans and government bonds also contributed to the decreased interest income. Decrease of interest costs on term deposits and mortgage bonds was not enough to cover the shortfall of interest income which was reflected in a decrease of net interest income by 5.2% to the level of € 289.4 mil. General administrative expenses increased by 3.2% to € 233.9 mil. mostly due to the contribution to the resolution fund paid for the first time in 2015.

Development of assets
Consolidated assets of Tatra banka Group grew by 15.8% to the level of € 11.22 bn. Loans provided to clients which increased by 13.1% to € 8.14 bn. made a significant contribution to this growth. Non-performing loans ratio decreased from 4.8% to 4.2% which is well below the sector level and proves a good quality of loan portfolio. Out of client loans, mostly loans provided to the corporate segment and home loans increased last year. The volume of securities and resources kept with the Central Bank increased as well.

Development of liabilities and equity

Client deposits increased in all served segments altogether to € 8.72 bn., which represents a striking increase of 18.8% year-on-year. Mostly current accounts along with term deposits recorded an increase. Loans to deposits ratio reached 93.4% on consolidated basis as at 31 December 2015. Capital adequacy ratio (CAD) on consolidated basis represented 18.21% as at 31 December 2015, which is significantly more than the required level of the National Bank of Slovakia and the European Central Bank.


Zuzana Povodová
02/5919 1557
0903 641 846

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