Economic news released by SITA on Monday, October 30
SLSP Group Shows Q1-Q3 Pretax Profit of SKK 3.537 Bln.
Slovakia's largest bank Slovenska Sporitelna, a.s., (SLSP), closed the first nine months of this year with a consolidated pretax profit of SKK 3.537 billion according to international financial reporting standards (IFRS). The taxed profit of the group was SKK 2.779 billion, up 4 percent y/y. The Q1-Q3 net interest revenues rose 9 percent y/y to SKK 6.317 billion to make up 69 percent of the group's operating revenues. Their growth can be ascribed to increase in key interest rates by the central bank, as well as the dynamic growth of loans. Net income from fees and commissions dropped 4 percent y/y to SKK 2.301 billion, SLSP spokesperson Miriam Funova informed SITA.
Citibank (Slovakia) Earns SKK 374.2 Mln. Pretax Profit in Q1-Q3 2006
Citibank (Slovakia), a.s., closed the first nine months of this year with a pretax profit of SKK 374.2 million. Its taxed profit amounted to SKK 303.9 million. The net interest income of the bank reached SKK 449.4 million, and net income from fees and commissions was SKK 51.9 million. The balance-sheet total stood at SKK 35.447 billion at the end of September, show data the bank released.
Tatra Banka with 3Q Gross Profit of SKK 2.438 Bln.
Tatra banka, a.s., the third largest bank house in Slovakia, posted a nine-month gross profit of SKK 2.438 billion according to International Financial Reporting Standards (IFRS). Net profit was SKK 2.073 billion. Net interest income stood at SKK 4.037 billion. Net fees and provisions were SKK 1.671 billion, informed the company.
Woodcote--Stavebne Materialy Profit Grew 15 % Last Year
Last year, the Bratislava-seated construction company Woodcote-Stavebne Materialy, s.r.o. reported a 15 percent growth in sales of goods that climbed to over SKK 366 million y/y. The cost of sales increased 36.1 percent to SKK 289.2 million. In the monitored period the company thus reported a trade margin at SKK 76.9 million, up 20 percent y/y. Added value was SKK 48.6 million. Net profit surged 15.3 percent to SKK 16.7 million, informed the company.
Tesco-Carrefour Merger Expects Antitrust Clearance by November 20
The Slovak Republic's Antitrust Office (PMU) might not issue a verdict regarding the merger of the Slovak units of the Tesco and Carrefour retail chains by the end of this year. PMU spokesperson Alexandra Bernathova told SITA that the PMU's deadline to decide on Carrefour's takeover by Tesco expires on November 20 of this year; however, the office still has the possibility to extend it 90 more days. The PMU spokesperson, thus, also set right the statement by PMU chairperson Danica Paroulkova, who said on the occasion of her reappointment in this post that the deadline to issue the verdict on the retail chains' merger will expire by the end of October. According to Ms. Paroulkova, Tesco submitted draft definitive terms on Friday, October 20. The PMU is currently analyzing the submitted proposal and it will decide based on the conclusions that it reaches.
Knudsen Plast to Invest EUR 3 Mln. in Vranov nad Toplou
The Danish company Knudsen Plast, which manufactures plastic products for the medical sector, plans to invest EUR 3 million (around SKK 109.1 million) into the eastern town of Vranov nad Toplou over the next two years. Knudsen Plast should share a location with Uniplast MH, s.r.o., Vranov nad Toplou. "Knudsen Plast should create around 200 new jobs during two years," said a spokesperson for the Slovak Investment and Trade Development Agency (SARIO) Sona Junasova. The new investor should launch production in February of next year.
Slovak Doctors Expect a 30 Percent Raise From Next Year
Speaker of Parliament Pavol Paska and Health Minister Ivan Valentovic guaranteed to the Doctors' Trade Unions (LOZ) that salaries in the health sector would increase considerably as of next year. The LOZ chairman Marian Kollar specified that they are considering a 30-percent raise. However, to increase salaries would require an additional SKK 2 billion. Next year the state will pay more to health insurers for its policyholders, which would mean an additional SKK 2.1 billion pouring into the system. Mr. Kollar said they also were seeking further funds to increase salaries. It could be the internal reserves of health insurers, he specified.
Analysts Expect Central Bank to Further Tighten Monetary Policy
Bank analysts expect that the Slovak National Bank's (NBS) tightening of the monetary policy by raising key interest rates has not reached its peak yet. They believe that the central bank will increase the rates once more by 25 basis points by the end of the current year. This would push the two-week repo rate to 5 percent. CSOB analyst Silvia Cechovicova believes that the central bank will raise the rates at the Tuesday session of the Bank Board. "Even though the crown firmed significantly and inflation outlook has improved, we expect tightening of the monetary policy. There are still inflation risks in the country's economy resulting in particular from strong wage growth and not restrictive enough state budget for next year," said Ms. Cechovicova, adding that recent statements from NBS Governor Ivan Sramko, who still sees a need for a tighter monetary policy, also support CSOB's expectations.
MONEY MARKET: Banks Deposited SKK 2.2 Bln. in Bond Auction
On Monday bids of commercial banks in an auction of zero-coupon bonds maturing in May 2012 totaled SKK 3.169 billion. The Finance Ministry's Debt and Liquidity Management Agency accepted SKK 2.189 billion of this. Slovenska Sporitelna dealer Pavel Janosik said that yields ranged between 4.348 percent p.a. and 4.496 percent p.a. "Auction results were within market expectations," he said. Commercial banks deposited SKK 8.19 billion in their reserve accounts in the central bank on Monday, meeting the minimum reserve requirement at 101.84 percent on a cumulative basis. Moreover, SKK 1.3 billion ended in the central bank through the overnight sterilization.
Cabinet to Deal with a Revision to Network Industries Regulation Law
The Slovak Cabinet is expected to deal with a draft revision to the law on regulation of network industries on Tuesday. Economy Minister Lubomir Jahnatek is convinced that the revision will bring clients lower energy prices, increase the rights of the regulatory office, and enhance its independence. However, energy companies, employers, and the regulatory office itself claim the opposite.
STOCK MARKET: SAX Share Index Slightly Down on Monday
The official share index SAX moderately weakened in the first trading day of the week. Its value fell 0.09 percent, or 0.38 points to 406.04 points. Turnover on the Bratislava Stock Exchange (BCPB) increased from SKK 34.1 million on Friday to SKK 647.1 million on Monday with SKK 24.8 million in share trading.
FOREX MARKET: After Initial Corrections, Slovak Crown Firmed Again
The Slovak crown opened trading on Monday at 36.340/36.380 SKK/EUR. Tatra Banka dealer Boris Somorovsky said that at the beginning of trading demand for euros weakened the Slovak crown to 36.420/36.460 SKK/EUR. "But from this point the euro was only sold and the exchange rate of the Slovak crown and the euro reached the daily record of 36.290/36.330 SKK/EUR," said the dealer. The exchange rate stood at 36.320/36.360 SKK/EUR before the close of trading.
SES Tlmace Reports Nine-month Sales of SKK 2.1 Bln.
Energy engineering company Slovenske Energeticke Strojarne, a.s., (SES), Tlmace posted sales of its products and services of SKK 2.133 billion in the first nine months of 2006. Compared with the previous year's period, this means a drop of 10.7 percent. It further stems from unaudited and unconsolidated results the company calculated in line with Slovak accounting standards published by the Bratislava Stock Exchange (BCPB) that the company closed the monitored period with a profit of SKK 49.5 million, a drop from SKK 83.2 million reported between January and September last year. Operating profit shrank from SKK 140.8 million to SKK 61.3 million. Losses from financial operations decreased from SKK 57.6 million to SKK 12.4 million.