PPF Group Reports €291M Loss In 2020

PPF Group reported a loss of 291 million euros (7.42 billion CZK) in 2020, while a year earlier it achieved a net profit of 1.005 billion euros (25.5 billion CZK). PPF achieved a profit of EUR 93 million (CZK 2.4 billion) in the second half of the year, while in the first half it lost EUR 384 million (CZK 9.5 billion). The return to profitability during the coronavirus pandemic enabled the largest domestic investment group to step into various fields and regions.

The negative economic environment caused by the pandemic was concentrated in the consumer lending sector. She is also a member of the newly established four-member steering committee of the group. It was established after the tragic death of the founder and main shareholder of PPF Kellner in March.

According to her, PPF’s strategy of geographical and industry diversification last year passed a rigorous test and proved that it can dampen the effects of pandemic events on the group’s consolidated results.

In addition, PPF is now preparing to merge its banking division, which includes Air Bank, Czech and Slovak Home Credit and Benxy, with Moneta Money Bank, where it holds a significant stake. The deal must be confirmed by the June general meeting of Moneta.

PPF fell into loss last year for the first time in its thirty-year history. According to Jirásková, this should be assessed in the context of the profits achieved in previous years. “The group’s total net profit between 2011 and 2020 was EUR 5.5 billion (CZK 140 billion), while the value of PPF’s assets increased almost threefold to EUR 39.7 billion (CZK 1.01 trillion) over the same period,” she said.

PPF Group invests in a number of industries, from financial services to telecommunications, media, biotechnology, real estate to engineering. PPF operates in Europe, Asia and North America. At the end of 2020, it employed more than 94,000 people worldwide. PPF has its corporate ownership and management structure in the Netherlands. Until his death, the majority owner of PPF Group, NV was the richest Czech Petr Kellner, who, according to the company’s annual report, controlled 98.93 percent of PPF.