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- Results for 2020’s first half attest to KB’s strong position
Results for 2020’s first half attest to KB’s strong position
KB reported an extraordinarily strong capital adequacy in the context of European banking, of 21.9%, even before inclusion of current year’s profit. The liquidity of the Bank remains exceptional too, as net loans represent only 74.3% of the client deposit base. The financial performance was affected by sharp deterioration in economic conditions relating to the Covid-19 global pandemic, measures taken by authorities to contain its spread, and overall weakening in consumer and business confidence. Total revenues decreased by (6.7%) to CZK 15.1 billion. Net interest income was down by (7.8%), at CZK 10.8 billion, mainly due to significant decline in market interest rates that negatively affect yields from reinvested deposits. Net fee and commission income diminished by (11.3%) to CZK 2.6 billion, mainly due to reduced transaction and sales activity but also reflecting impacts from new regulation of fees for cross-border payments. Net profit on financial operations increased by 12.6% to CZK 1.5 billion, boosted by stronger demand from clients for hedging of financial risks in the volatile environment.
8. 3. 2020 7:00
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