- About Bank
- For investors
- News
- Komerční banka Group Financial Results as of 31 March 2019
Komerční banka Group Financial Results as of 31 March 2019
Revenues increased, operating costs under control, risk costs still excellent.
Prague, 3 May 2019 – Komerční banka reported today its unaudited consolidated results for the first quarter of 2019.
Total revenues increased by 5.1% to CZK 8.0 billion. Within this total, net interest income was higher by 9.2% from the year earlier, reflecting growth in the volume of assets and higher CZK interest rates, which supported yields from reinvestment of deposits and capital. Net fees and commissions were lower by 2.1%, because improving fees for services to corporations and from clients’ upgrading to higher account packages were more than offset by lower income from transactions and loans. Net gains from financial operations decreased by 13.5% to CZK 0.6 billion, influenced by revaluation of derivative positions.
Operating expenditures were up by 3.2%, at CZK 4.2 billion. The paces of growth were very similar for both personnel and non-personnel expenses. Faster growth in average remuneration was partly offset by decrease in the average number of employees by 3.9% to 8,167.
The quality of the loan portfolio remained excellent, and KB was able to book a net release of provisions for credit risk amounting to CZK 176 million. This result was due to the still-supportive economic environment, continued low client default rates, and good performance in recovery activities.
Net profit attributable to the Group’s equity holders totalled CZK 3,176 million, which was an improvement by 5.9% year on year.
Lending to clients increased by 4.0% to CZK 637.3 billion.[1] KB and Modrá pyramida’s financing of housing expanded by 3.9% while consumer lending by KB and ESSOX grew by 3.4%. KB Group lending to businesses was up by 4.2%.
Deposits from clients climbed by 4.5% year on year to CZK 826.1 billion.[2] The volume of KB Group clients’ assets in mutual funds, pension savings, and life insurance rose by 5.5% to CZK 172.9 billion.
The capital adequacy ratio reached a strong 18.9%, and Core Tier 1 capital stood at 18.4%.
“We observed rapid proliferation of digital banking among the clients in the beginning of this year, as had been an assumption underlying the KB Change strategic transformation programme. KB has invested significant resources into making our digital channels convenient, safe and attractive to clients. These investments are paying off, as KB has a larger number of mobile banking clients and greater volume of mobile banking transactions than any other Czech bank. Importantly, we make digital banking easy to use for all generations, and clients’ satisfaction with Mobilní banka has been rising from the already high levels. The financial results for the first quarter confirm the positive trajectory of overall revenues, mainly thanks to net interest income. Even while investing in digitalisation and changing the Bank, we have maintained disciplined management of operating expenditures. Of course, the bottom line result was supported by the still-strong loan repayment discipline demonstrated by clients.”
The Bank had 47,718 shareholders as of 31 March 2019 (down 241 year on year), of which 42,392 were private individuals from the Czech Republic (lower by 284 from the year earlier). Strategic shareholder Société Générale maintained its 60.4% stake while minority shareholders owned 39.0% and KB held 0.6% of its registered capital in treasury.
Excluding volatile reverse repo operations with clients but including debt securities issued by KB’s clients and held by the Bank. Inclusive of repo operations, amounts due from clients rose by 1.9% year on year to CZK 640.5 billion.
Excluding repo operations with clients. The total volume of ‘Amounts due to customers’ moved up by 5.2% to CZK 856.6 billion.
- - -
[1] Excluding volatile reverse repo operations with clients but including debt securities issued by KB’s clients and held by the Bank. Inclusive of repo operations, amounts due from clients rose by 1.9% year on year to CZK 640.5 billion.
[2] Excluding repo operations with clients. The total volume of ‘Amounts due to customers’ moved up by 5.2% to CZK 856.6 billion.