Consolidated, unaudited financial results of Slovenská sporiteľňa as of 31 March 2021 according to International Financial Reporting Standards (IFRS).

Financial highlights as of 31 March 2021 (Y/Y comparison)

• Net interest income went down by 6.0% y/y from EUR 109.6 million to EUR 103.0 million
• Net fee and commission income increased by 7.3% y/y from EUR 34.5 million to EUR 37.0 million
• Operating profit went down by 2.9% y/y from EUR 67.3 million to EUR 65.3 million
• Net profit after tax increased to EUR 30.9 million (2020: EUR 26.1 million)
• Volume of loans and receivables to customers grew by 4.0% y/y from EUR 14.0 billion to EUR 14.6 billion
• Deposits from customers increased by 9.8% y/y from EUR 14.0 billion to EUR 15.4 billion
• Cost income ratio reached 54.6%
• Capital adequacy reached 20.78% and continues to considerably exceed the limit stipulated by the law (according to ECB/NBS, Basel III and IRB approach)
• Loan-to-deposit ratio decreased y/y from 100.0% to 94.8%

Business performance overview of Slovenská sporiteľňa as of 31 March 2021

Net interest income went down by 6.0% y/y from EUR 109.6 million to EUR 103.0 million. This decrease can be seen both in interest income from loans and debt securities. However, interest income from liabilities with a negative interest rate (TLTRO) and decrease of interest costs had a positive impact on net interest income.

Net fee and commission income increased by 7.3% y/y from EUR 34.5 million to EUR 37.0 million. All categories of net fees and commissions developed favourably, mainly fees related to securities and payment services.

The bank recorded a net profit of EUR 3.3 million in the area of net trading and fair value result which is mainly attributable to derivative transactions.

General administrative expenses went up by 7.4% y/y to EUR 78.4 million (in 2020 it was EUR 73.0 million). Personal expenses grew slightly by 3.3%, while other administrative expenses grew by 25.1% mainly as a result of the increased contribution into the Deposit Protection Fund. This increase was partially offset by a decrease of write-offs by 20.4%.

Operating profit went down by 2.9% (by EUR 2.0 million) which is a positive result considering the adverse market situation. Cost income ratio went up to 54.6%.

The ongoing recession is also reflected in the creation of provisions for loans. Net impairment of financial assets went up to EUR 17.7 million compared with 2020.

The share of defaulted loans on total loan volume decreased from 2.8% to 2.4% while the coverage with provisions improved from 82.4% to 102.1%.

Total levies of the bank went down from EUR 22.9 million to EUR 14.4 million. The cancelled bank levy had a positive impact but the contribution into the Deposit Protection Fund increased considerably from EUR 1.1 million to EUR 9.4 million. The annual contribution into the Single Resolution Fund reached an estimated amount of EUR 5 million.

Consolidated profit after tax reached EUR 30.9 million.

The volume of loans to customers increased by 4.0% y/y and achieved EUR 14.9 billion.

Retail loans were the major driving force; they increased by 2.3% y/y (by EUR 0.2 billion) compared with 2020. Slovenská sporiteľňa again confirmed its position as market leader in retail loans; its market share in retail loans reached 25.0% in the first quarter of 2021. The main growth driver were housing loans which grew by 5.3% (EUR 0.4 billion in absolute terms), while consumer loans went down by 13.1% y/y (EUR 0.2 billion in absolute terms).

Loans to corporate clients (including factoring and leasing products) increased by 9.8% y/y (by EUR 0.4 billion) and reached EUR 4.3 billion.

Retail deposits increased from EUR 12.3 billion to EUR 13.6 billion, providing a solid base for financing and room for further growth of the bank. Deposits from customers rose from EUR 14.0 billion to EUR 15.4 billion compared with the year 2020.