Tatra banka Group reached the highest profit ever
| 11.03.2022 | 3 min. reading
Tatra banka Group closed the financial year 2021 with a record consolidated profit of EUR 162.1 million and the best possible rating from the agency Moody’s a commercial bank in Slovakia currently possesses.
“When we look back at the bank´s history, the year 2021 was the most successful period for us, with a record breaking economic result. Tatra banka is a strong and sound bank. We are pleased that the globally recognised rating agency Moody´s Investors Service has also acknowledged this fact by increasing Tatra banka´s long-term deposit rating. Rating A2 represents the highest possible level a commercial bank in Slovakia currently possesses,” says on this occasion Michal Liday, Chairman of the Board of Directors and CEO.
Thanks to its innovative approach, Elevator Lab powered by Tatra banka was recognized as one of the best financial innovation labs in the world for the second year in a row. Global Finance recognized Tatra banka as an exceptional innovator in corporate finance for its fully digital lending to single-person companies. According to Global Finance, Tatra banka dominates in financial innovation, and according to PWM Magazine, Tatra banka is the best private bank for portfolio management technology in Central and Eastern Europe.The bank added several leading positions to the two awards from Global Finance during the year 2021 from Euromoney, EMEA Finance along with the title Bank of the Year awarded by the Slovak weekly Trend.
“We feel that firms should return the society a part of their success. A large amount of our attention currently belongs to those facing the ongoing war conflict. Our colleagues are directly at place, taking care for the colleagues from Ukraine and other people in need who are fleeing to safety, we are offering financial and material aid directly at the borders, “ adds Michal Liday. The bank also provides more colleagues speaking the Ukrainian language at the branches in the border area, applies no charges for the existing and new current accounts for the citizens of Ukraine and applies no charges for sending money to Ukraine to all clients. It has installed 4 mobile ATMs near the borders to be used by people from Ukraine to get their cash as fast as possible. No charges are applied for cash withdrawals within its ATM network.
Impact of the current situation on the bank
“The situation in Ukraine and Russia has no financial impact on Tatra banka. The bank is an independent institution with a separate and autonomous management and does not develop commercial activities in the countries stricken with the conflict. We have had two difficult years affected by the pandemic – in contrast to the current situation – when the impact on the bank has been direct. In spite of that, we have come out stronger than ever. The excellent financial results for 2021 prove it,“ explains Tatra banka´s CEO.
The bank has historically best liquidity. It possesses a high financial reserve formed especially by cash deposited in the central bank, as well as highly liquid government bonds. The cautious approach to risk management is also proved by the fact that the business activity of the bank does not include the activities related with Russia, Belarus and Ukraine. The bank has been classified among the largest systemically important banks on the Slovak market and as such meets the strictest European criteria. It regularly passes simulated stress tests successfully.
The development of assets
The consolidated assets of the Tatra banka Group increased by 24.7 % to EUR 19.5 billion. Loans provided to clients, which increased by 10.1% to EUR 12.7 billion, significantly contributed to this increase. Mostly home loans grew again sharply but consumer loans also recorded a year-to-year increase on a consolidated basis. The financial assets for corporate clients recorded a year-on-year increase by 10% to EUR 5.1 billion. The NPL ratio in the overall portfolio remained under 2 %, which suggests a very good loan portfolio quality.
The development of liabilities and equity
The client deposits increased on a year-on-year basis by 9.8 % to EUR 13.5 billion The deposits on current accounts grew by 8.6% to EUR 12.4 billion.
The loan to customer deposit ratio on a consolidated basis was 94.3 % as at 31 December 2021. The consolidated capital adequacy ratio reached the level of 19.0 %, which is much more than the value requested by the National Bank of Slovakia and the European Central Bank.