Annual Report - VÚB banka

Review of the Economic and Financial Position of VUB
In 2007, the Bank’s objective was to boost its forefront
position in the banking sector and ensure
continuous increase in profi tability and effi ciency of
its business. The Bank has successfully fulfi lled the
preset goals. In terms of profi t growth generated
from banking business, VUB has been repeatedly
ranked among the most profi table banking houses
on the Slovak market. In fact, whereas the operating
costs went up as little as 6%, the total operating
income increased more than 10%. The interest
income, incomes from fees and commissions and
trade income earned on FX and MM deals represented
the key drivers of the increase. Based on
IFRS standards, the Bank’s consolidated operating
profi t as of 31 December 2007 was 15% higher than
that generated in the previous year, and the effi ciency,
measured as the cost income ratio was below
50%.
Signifi cant progress that the Bank achieved, possibly
accelerated dynamics in the banking market
were behind the reinforced fi nancial position of the
Bank. Increase in total consolidated assets, which
went up by 18% in 2007 in contrast to a 6% growth
for the preceding year, represent the fi rst sign of
the progressive achievements. Whereas, in 2006
the major portion in total assets made the securities,
in 2007 the receivables due from the clients
taking a 46% share in total assets represented the
most signifi cant asset–related item. Admittedly,
the loans to clients showing year-to-year increase
of 41% signifi cantly contributed to this fi nal fi gure.
Thereby, VUB has defended its forefront position
in the Slovak loan market. The Bank’s subsidiary,
Consumer Finance Holding has been involved in the
ever increasing share of retail clients in the expanding
loan portfolio. Compared to 2006, the company
recorded 18% increase in loans granted to
individuals. In November 2007, the company B.O.F.
Leasing was integrated in the VUB group, with view
to further boost Bank’s position in the loan market,
namely in the corporate segment.
Bank’s progress was also visible in deposits which
grew by 15% namely due to mutual funds kept by
the VUB Asset Management amounting to SKK 29
billion. VUB Generali, d.s.s., the Pension management
company, in which the Bank holds a 50%
stake, has successfully defended its existing market
position in the pension savings . At the end of
the year, the company managed assets worth of
SKK 7.5 billion.
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VUB, a bank of Intesa Sanpaolo group