Komerční banka Group Financial Results as of 30 September 2024

31. 10. 2024 6:45

“I am pleased with our strong overall performance through the first nine months of the year even as we have progressed substantially along Komerční banka’s transformational journey. The number of our clients increased notably, as did the volume of assets that those clients have entrusted to our management. The volume of financing we provided to businesses and households expanded, too. Our profitability had been gradually improving during the year even before it was given a boost in the third quarter by an exceptional gain related to the sale of our historic headquarters at Václavské náměstí,” remarked Jan Juchelka, Chief Executive Officer and Chairman of the Board of Directors of Komerční banka.

“We continue to successfully implement our transformation strategy. We are approaching a point where half of our clients will be served in the KB+ application, and I consider that to be another important milestone in our journey. Today, almost exactly 18 months after we introduced the New KB Era Banking to the public, we have more than 800,000 users in the KB+ app. In the remaining months of this year, we have even more ambitious goals ahead of us. We want to be serving 1,000,000 users of our KB+ application by the year’s end and of course to continue in deepening relationships with all 2.2 million of KB Group’s clients. We aim to complete the transfer of retail clients in the first half of next year, and I am confident that we will reach our target. Moreover, preparations for the New Era of Banking for corporate clients are already well underway.

“We are focused on improving efficiency and sustainable profitability. We endeavour to achieve disciplined business growth while increasing operational efficiencies, operating in a streamlined and integrated business model, simplifying product portfolios, and seeking synergies. An example of this can be seen in our recently launched single centre for processing the housing loans of both KB and Modra pyramida,” Jan Juchelka added.

KB Group’s lending to customers rose by 3.7% year on year to CZK 838.2 billion. Deposits from clients grew by 3.4% from a year earlier to CZK 1,057.6 billion. Volume of non-bank assets (mutual funds, pension funds, life insurance) under management expanded by 13.7% to CZK 273.8 billion. 

The number of customers in standalone Komerční banka increased by 44,000 year on year to 1,709,000. As of 30 September 2024, 717,000 users had already enrolled into KB’s new digital bank introduced in April 2023. KB Group was serving 2,184,000 clients.

First nine months of 2024: Total revenues were down by (1.0%) year on year to CZK 26.7 billion. Operating expenditures increased by 2.5% to CZK 13.3 billion. The Group reported a CZK 1.0 billion net creation of provisions for credit risk. Income taxes reached CZK 2.3 billion. Net profit attributable to the Group’s equity holders, at CZK 12.5 billion, was up by 1.5% year on year.

Third quarter of 2024: Total revenues increased by 3.2% year on year to CZK 9.2 billion. Operating expenditures were higher by 8.8%, at CZK 4.3 billion. The Group reported a CZK 0.4 billion net creation of provisions for credit risk. Income taxes reached CZK 0.8 billion. Net profit attributable to the Group’s equity holders, at CZK 6.2 billion, was up by 45.2% year on year.

Volume of regulatory capital reached CZK 106.4 billion, capital adequacy stood at 19.0%, and the Core Tier 1 ratio was 17.9%.

KB closed the sale to the City of Prague of its VN42 subsidiary owning the headquarters building at Václavské náměstí 42.

KB had 75,927 shareholders (greater by 2,993 year on year), of which 69,935 were private individuals from the Czech Republic.

Financial results