In 2009 on the Czech building savings market, there were 575 thousand new building savings contracts with total target amount of CZK 183 billion concluded and loans in the volume of CZK 66 billion granted. At the end of 2009, in total the clients’ savings deposits amounted to CZK 415 billion and loans to CZK 268 billion in the books of building savings banks.
Last year Modrá pyramida concluded 188 thousand new contracts and target amount increases with total target amount of CZK 40 billion, which is year-on-year growth by 2.3% as measured by volume of target amount. The number of valid building savings contracts amounted to 805,325 contracts with target amount of CZK 233.5 billion at the end of the past year. Despite the fact that the building savings market recorded an overall decrease in demand for new contracts, Modrá pyramida managed to increase clients’ interest and in this respect it reached the second position on the market having improved its market share by 5.7% to total 21.2% as measured by number of new concluded savings deals.
In 2009 Modrá pyramida granted its clients nearly 16 thousand loans in volume of CZK 10.4 billion, which is a decrease by 9.4% compared to the previous year when the volume of loans granted by the building savings banks decreased in total by 11%. Fewer loans were granted mainly by out-of-Prague regions, the Prague regions and the Hypocentrum of Modrá pyramida on the contrary succeeded in increasing the volume of granted loans by 18%. Also in 2009 the most popular product was Hypoúvěr, there was also growing interest in loans for renovation and modernization of housing – also in form of newly introduced Rychloúvěr (small unsecured loan). The market share of Modrá pyramida amounts to 15.8% as measured by contractual volume of loan, which is a year-on-year increase by 0.3%.
The total volume of granted housing loans increased by 16% in 2009 and reached CZK 45.6 billion, the ratio of granted housing loans to received savings deposits increased to 69.7%.
The volume of clients’ deposits reached the amount of CZK 65 billion, which is an increase by 3% compared to the last year. The Company’s total assets exceeded the value of CZK 76 billion, in comparison to the end of 2008 it is an increase by 7.6%.
With the profit after tax in the amount of CZK 739.7 million Modrá pyramida managed to fulfil the plan for 2009 despite the environment of deteriorated economy and financial crisis.
The ordinary financial statements for 2009 were prepared with due care and diligence and were reviewed by an independent auditor – the auditing company Deloitte Audit s.r.o. with its registered office Prague 8, Karolinská 654/2. The auditing company performed an audit in accordance with the regulations valid in the Czech Republic and has stated that the financial statements give a true and fair view of the financial position of the company Modrá pyramida stavební spořitelna, a.s., as at 31 December 2009 and of the results of its financial performance in accordance with the accounting regulations applicable in the Czech Republic.
Strategy
In 2009 Modrá pyramida focused on support and development of its key products, mainly in the savings area. This effort was reinforced by a very successful result of autumn campaign for building savings designed for new as well as existing clients.
There was continuing successful cooperation with Komerční banka, a.s. – strong shareholder offering wide range of modern banking products and services. The large distribution network of professional advisors of Modrá pyramida connected with wide range of products of Komerční banka, a.s.
Products and awards
There was a very successful product in the area of building savings which belonged to key product innovations 2009 – it was product Prolongation PLUS enabling clients to prolong advantages of already existing building savings contract in Modrá pyramida under very favourable conditions for the period of three or six years.
For new clients who wanted to increase value of their one-off deposits in the most efficient way Modrá pyramida prepared product Savings EFEKT. This product is under advantageous conditions designed also for the existing clients who need to withdraw their saved money but keeping part of it in Modrá pyramida in order to use benefits of building savings.
In the loan area, Modrá pyramida started offering a modified form of the most popular product with its clients – Hypoúvěr and prolonged its maturity up to 28 years. Thus Hypoúvěr became more accessible to even larger group of new and existing clients as well.
In 2009 Modrá pyramida got the opportunity to mediate requests of state subsidy programme “Green Savings”. In addition for its clients it prepared more favourable conditions in case they use a loan from Modrá pyramida for financing within this programme.
Besides core business products, Modrá pyramida offers its clients also key banking products such as current accounts, credit cards and consumer loans developed in cooperation with Komerční banka. To give full picture of the products it is to mention the offer of pension insurance of Pension Fund of Komerční banka, risk life insurance in cooperation with Komerční pojišťovna, property insurance and motor third party liability in cooperation with Allianz insurance company. In total Modrá pyramida mediated 41 thousand banking and insurance products as mentioned above in the last year.
An innovation in communication with the public and clients was a modern audio-visual means – web television through which Modrá pyramida informs on news and innovations, advantages of products and services but also brings a lot of useful advice and suggestions. Modrá pyramida started using this new medium also in internal communication and education.
Modrá pyramida crowned the year 2009 with a historic success when it was awarded as the only financial institution the best prize for the fifth time in a row in one of the most prestigious competitions “Fincentrum Bank of the Year” and is thus a holder of awards Building Savings Bank of the years 2005, 2006, 2007, 2008 and 2009.
Sales network
In the past year 2009, the change in the system of distribution network management continued. The main goal of all executed changes is permanent enhancement of quality of provided services and higher professional level of the whole sales network. Every client has at his/her disposal an advisor who knows the client’s needs and, thanks to a wide offer of the financial products, is always able to provide the best solution to the client.
Besides continuing development of the network of 1,500 advisors, Modrá pyramida’s clients can also use all points of sales of Komerční banka, a.s. and the network of selected intermediary agencies as well. In 2009 MP managed to achieve a strategic increase in number of core sellers by 100 core sellers.
Modrá pyramida successfully continued operating the project “HYPOCENTRUM”. It is the biggest advisory centre of its kind. Hypocentrum of Modrá pyramida cooperates with a number of developer companies and thus it offers Modrá pyramida’s clients a complex solution of their housing needs, beginning with the selection of real estate and ending with the most suitable form of financing.
Internal audit and risk management
Internal Audit, as an independent unit, performs audit, control and consultancy activities. It is an integral part of the management and control system of the bank. When performing its activities, Internal Audit closely cooperates with the Audit Committee of the Supervisory Board and with the Internal Audit of Komerční banka, a.s. It informs regularly the Board of Directors, the Audit Committee and the Supervisory Board on results of its activities through summary reports. The activities of Internal Audit are governed by a strategic and operational (annual) plan drawn up based on the risk analysis. Internal Audit is a holder of a statement from an independent assessor with a conclusion that Internal Audit Department of MPSS performs its activity in compliance with international standards for discharge of internal audit.
In the area of risk management, the Board of Directors of Modrá pyramida stavební spořitelna, a.s. continually adopts measures in order to ensure permanent high level of security and transparency of adopted decisions in all business and financial processes. The area of risk management is described in detail in the accompanying notes of the annual financial statements for 2009.
Prague, 10 March 2010
Board of Directors of Modrá pyramida stavební spořitelna, a.s.