E15: J&T group sees profit drop by half to CZK 1bn in 2011

Prague, Oct 1 (CTK) - Czech-Slovak investment group J&T Finance Group saw its profit drop to EUR40m (around Kc1bn) last year from the previous EUR85m owing to losses from investment in shares, but for this year the company expects a growth, daily E15 said yesterday.

"The year-on-year drop in profit was contributed the most by the development on stock markets," J&T marketing head Petr Malek told the paper.

J&T's annual report shows that the group sustained losses from investment in the shares of Unipetrol (EUR18.6m) and Erste Bank (EUR15m), for example.

This year, the group is in the black considering investment, Malek said. The company returned to last year's level and generated additional earnings of EUR15m, he said.

The group's total assets increased to EUR5bn last year from EUR3.8bn in 2010.

For this year, J&T's management expects a 20 percent growth in profit compared with last year.

"The biggest contribution to the creation of profit of the J&T group was made by companies that provide long-term strategic non-banking financing above all in the energy sector and industry, the real estate sector, tourism and services. These companies create profit in the form of net profit margin in the long term," Malek said.

The J&T group is owned by Slovak entrepreneurs Jozef Tkac and Ivan Jakabovic, according to E15.

J&T Finance Group comprises J&T Banka, Atlantik FT and a number of companies focusing on investment and asset management. It operates in the Czech Republic, Slovakia and Russia.