BRATISLAVA, July 31, (WEBNOVINY) – The state-run Slovak guarantee and development bank SZRB posted taxed profit of EUR 3.2 million from January to June of this year. This is more than a twofold increase from EUR 1.5 million in the same period a year ago. The bank further reported that operating revenues rose 3.7 percent y/y to EUR 9.2 million, while operating costs fell 3.8 percent to EUR 4.9 million. Formation of provisions and loans dropped in annualized terms, too.
SZRB expects to earn a taxed profit of 1.94 million euros this year and increase it in the next years. In 2012, the estimated annual percentage increase of taxed profit is 26 percent, 28 percent the following year and 22 percent in 2014, as the Finance Ministry informed in June.
Last year, the bank reported a loss of 9.84 million euros, which resulted from an adjustment of the system of formation of provisions and reserves and from retrospective risk assessment of loans and guarantees. Thus, the bank slipped into the red because of provisions and reserves, since before their formation it recorded an operating profit of 6.24 million euros, an annual increase of 1.2 percent.
The bank last year approved 696 direct loans totaling 130.5 million euros, while the average loan amount was 187.5 thousand euros. The volume of provided direct loans amounted to 128.3 million euros, representing an increase of over 10 percent. The bank also approved 866 guarantees last year for 74.05 million euros, of which 86.73 percent were fast guarantees for loans from commercial banks exclusively for SMEs. The volume of provided guarantees was 75.6 million euros, while the average amount of guarantee was 87,000 euros.
SZRB started operating in Slovakia in 1991 as a state-run financial institution founded by the Finance Ministry. In October 2002, the bank was transformed into a joint-stock company. The Finance Ministry is SZRB’s sole shareholder. The bank provides assistance to small and medium-sized entrepreneurs, towns and villages and owners of apartment houses.
SITA
