OREANDA-NEWS. February 14, 2008. The net profit generated by Kredyt Bank Group in the 4th quarter of 2007 amounted to PLN 109.5 million and was the higher quarterly income in that year. The net profit for the whole of 2007 amounted to PLN 390.5 million (vs. 468 million generated in 2006).

In 2007, the Group generated net profit of PLN 390.5 million (the net profit amounted to PLN 468 million in 2006). The gross profit amounted to almost PLN 502 million in 2007 (PLN 460.6 million in 2006).
There was a growth in all major operating revenue categories (except sale of receivables) in 2007 compared to 2006 which proves our growing business activity.

Lower level of net profit in the 2007 in comparison to the 2006 resulted from transaction on sale of receivables in second quarter of 2006 (the total result on sale of receivables amounted to PLN 149.662 in 2006). Lower net profit in the 2007, as compared to the 2006 is also an effect of debtor’s result income tax for 2007 in amount of 111 418 thousand, as compared to credit’s result for 2006 in amount of 7 495 thousand.

Major revenues and expenses of the Group

* Including the result on hedged and hedge transactions and revenues from dividends.

The result on interest generated by the Group during four quarters of 2007 amounted to PLN 871.5 million which means that it exceeded by 11.7% the result generated during four quarters of 2006.
The result on fees and commissions for four quarters of 2007 was PLN 309.5 million and exceeded the result obtained in the same period of the preceding year by 14.6%.
The higher result on interest, fees and commissions was due to a significant increase in value of the credit portfolio.

Gross receivables from customers at the end of quarter 4 of 2007 exceeded the balance at the end of quarter 3 of 2007 by 7.4% and were higher than in the same period of the last year by 38.1%.

2007 was the second consecutive year of a significant growth in sales of housing loans that almost doubled (growth by 190%). We extended 7,100 housing loans amounting to a total of PLN 1,018 million in quarter 4 of 2007. The gross value of the housing loans portfolio increased by 13.1% compared to quarter 3 of 2007 and by 85.2% compared to the same period of the preceding year. Kredyt Bank extended 25,900 housing loans amounting to a total of PLN 3.9 billion in 2007. As for sales value, we were among four banks generating the highest sales volume.
Їagiel sold retail credits and loans worth PLN 738 million in quarter 4 of 2007 which was 32.5% more than in quarter 3 of 2007 and 40.1% more than in quarter 4 of 2006.
The value of irregular debt portfolio decreased by 20.9% in quarter 4 and by 33.2% in the last year.
Costs of operations of the Group amounted to PLN 974.6 million after four quarters of 2007 and exceeded those incurred in the same period of 2006 by 4.8%.

Cost-to-revenue ratio for 2007 was 67.4 % which means a decrease by 0.5 pp as compared to the same period of 2006. The ratio decreased significantly, i.e. by 13.9 pp, in quarter 4 of 2007 as compared to quarter 4 of 2006. Cost-to-revenue ratio, counted with no consideration for the highest sale of receivables transaction portfolio in 2007 and 2006 decreased by 7.6 pp and amounted to 68.6% in 2007 (76.2% in 2006).
The customers’ deposits portfolio increased by 8.1% in 2007 as compared to 2006 and by 0.7% compared to quarter 3 of 2007.

In 2007 the Bank prepared for the implementation of the Directive of the European Parliament and the Council on Markets in Financial Instruments (hereinafter referred to as “amp;MiFID”). Kredyt Bank implemented the Financial Compass – a new service standard meeting the Directive. It is a modern specialized IT tool supporting the construction of the optimum diversified savings portfolio for a private customer. It includes all the investment products available from Kredyt Bank: investment funds offered by KBC TFI, funds with capital protection offered from time to time, savings account, life insurance offered by TUnЇ WARTA, systematic saving plans and individual pension accounts.
Furthermore, seven combined products - TUnЇ Warta insurance with KBC AM investment funds – were subscribed for in our branches in 2007.

The number of credit cards at the end of quarter 4 of 2007 was higher by 21.7% than at the end of quarter 3 of 2007 and by 73.2% than at the end of quarter 4 of 2006. Visa Euro, a debit card linked to EUR current accounts, has been included into our offer.
The number of users of online distribution channels is growing systematically.
There were 278,000 users of KB24 at the end of 2007. The number of transfers made through KB24 amounted to about 1.1 million monthly in the last quarter of 2007.