KOMERCNÍ BANKA, Prague, 3 May 2024
Komerční banka Group
Consolidated unaudited results
as of 31 March 2024
Disclaimer
This document contains a number of forward-looking statements relating to the targets and strategies of the Komerční banka Group. These statements are based on a series of assumptions, both general and specific. As a result, there is a risk that these projections will not be met. Readers are therefore advised not to rely on these figures more than is justified as the Group's future results are liable to be affected by a number of factors and may therefore differ from current estimates.
Readers are advised to take into account factors of uncertainty and risk when basing their investment decisions on information provided in this document.
Results and ratios in this presentation are as of 31 March 2024, unless stated otherwise.
Komerční banka, a.s., public limited company with registered office: Prague 1,
Na Příkopě 33/ 969; identification number: 45 31 70 54; registered in the Commercial
Register maintained by the Municipal Court in Prague, Section B, file 1360
KB Group results as of 31 March 2024 | 2 |
Agenda
Highlights as of 31 March 2024 and update on New Digital Bank
Financial performance
Asset quality and cost of risk
Capital and dividends
Outlook for 2024
Appendix
KB Group results as of 31 March 2024 | 3 |
Highlights of Q1 2024
First quarter 2024: Accelerating progress in strategic transformation
Financial performance
Group net income
CZK 2.8billion
-21.3% year on year
CZK 59.39 per share
ROE
Business performance
Client loans | |
+4.6% YoY | -0.3%QoQ |
Deposits | |
+7.2% YoY | +4.3% QoQ |
Shareholders' decisions
Dividend
CZK82.66per share
Record date 6 May 2024 Payment date 27 May '24
Supervisory Board and | Statutory auditor |
Audit Committee | KPMG Audit |
Delphine Garcin- | appointed as a new |
Meunier elected as a | statutory auditor |
member |
8.9%
10.3% IFRIC 21 linearised
Total capital / Core Tier 1 ratio
18.8%/17.7%
-96 bps year on year (Total capital) -154 bps year on year (CET1)
Cost/Income ratio
54.5%
48.1% IFRIC 21 linearised
Other AUM |
+15.3% YoY +4.2% QoQ |
Mutual funds up by 30.2% YoY
Loan to deposit ratio
79.9% (excluding repo operations)
Liquidity coverage ratio
154%
Cost of risk
22bps
Other highlights
Accelerated clients' enrolment to New Digital Bank
255,000 clients of New Digital Bank as of 31 March 2024 Number of KB Bank's clients up by 22,000 to 1,678,000
VISA Awards #1 sustainable bank | Mastercard Awards |
Responsible Innovation | |
Premium Card Issuer |
KB Group results as of 31 March 2024 | 4 |
New Digital Bank - business driven and technology enabled transformation of KB
New DigitalBank (retailpart)
Change of the fulltechnologicalstack,digitalizingthewholebank, improvingefficiency, customerserviceand increasingabilityto adaptto constantlychangingenvironment
A new bank parallelto theexistingbank, gradualshiftof clientsfrom old to new Commenced in retail,developmentgraduallyshiftedto NDBfor corporateclients
New banking platform
New simple digital products & processes
New distribution channels
Improvingthe offer everytwoweeksin agile@scaleand DevOpsworkingmethod,enabling the organizationto learn graduallyand managerisksand stress
Onboardingof customersto the new digitalbanking platformacceleratingduring2024. 255,000clientsas of 31 March 2024. Targetto enrol 1 millionclientsby the end of 2024
1000k
Clientsof KB's New Digital Bank
156k | 204k | 255k | ||||||||||
121k | ||||||||||||
58k | 100k | |||||||||||
3k | 5k | 9k | 15k | 21k | 31k | 40k | ||||||
Plan
Shareof fullydigitalonboardingtothe New DigitalBank at 46%
Digitalsalesratioin the NDBat 85%
• | Temenos T24 core | • | Multicurrency | • | Omnichannel model |
• | TSYS Prime card | account | with single CRM | ||
Subscription plans | Mobile-first digital | ||||
system | • | • | |||
• | Valantic Payment | • | Instant payments, | channels | |
Re-thinked service | |||||
hub | pay-to-phone | • | |||
• | Starbuild mortgage | number | model in branches | ||
Investments, | 90% reduction in | ||||
centre | • | • | |||
• | Data mesh concept | insurance | processes and | ||
In preparation - | products | ||||
and in-house | • | ||||
In-house developed | |||||
developer analytical | proposition for | • | |||
layer | children, top affluent | KB+ app | |||
clients, e-brokerage |
Switchingoff the main componentsof the legacyinfrastructureto gradually begin mainlyfrom 2026 and 2027
KB Group results as of 31 March 2024 | 5 |
Agenda
Highlights as of 31 March 2024 and update on New Digital Bank
Macroeconomic environment
Financial performance
Asset quality and cost of risk
Capital and dividends
Outlook for 2024
Appendix
KB Group results as of 31 March 2024 | 6 |
Economic recovery to be driven by domestic consumption and investments
GDP in 1Q 20241) up by +0.5% QoQ and up by +0.4% YoY according to flash estimate. QoQ growth was driven by household consumption and total investments, net exports contributed negatively
Tight labour market. Unemployment rate at 2.6% in February 2024.2) Wages in 4Q 2023 up +6.3% YoY nominal but down -1.2% YoY in real terms
Consumer price inflation at 2.0% YoY in March (+0.1 % MoM), mainly due to housing, water, electricity, gas and other fuels (+0.9 pp) and food and non-alcoholic beverages (-0.9 pp). HICP (Eurostat) at 2.2% YoY in February
As of 31 March 2024, exchange rate vis-à-vis euro was at 25.3, weaker by 2.4% QoQ and by 7.7% YoY; vis-à-vis USD CZK was at 23.4, weaker by 4.6% QoQ and by 8.4% YoY
CNB cut 2W repo rate in 1Q 2024 two times by 50bps each to 5.75%. As of 31 March, 3M PRIBOR was 5.61% (- 157bps YoY). IRS positively sloping since January. 10Y IRS was at 3.71% (-75bps YoY), 5Y IRS at 3.65% (-124bps YoY) and 10Y CZGB at 4.02% (-65bps YoY)
Notes: Source of indicators Czech Statistical Office, CNB, unless stated otherwise.
- According to the flash estimate of Czech Statistical Office
- According to Eurostat, seasonally adjusted
Czech Republic - macro
Czech GDP development (% year-on-year)
10 | 3.6 | KB Economic | ||||
1.4 | Research Forecast | |||||
5 | 2.4 | 2.2 | ||||
0 | ||||||
-5 | -0.2 | |||||
-5.5 | ||||||
-10 | ||||||
2020 | 2021 | 2022 | 2023 | 2024F | 2025F | |
GDP | Government | Inventories | Others | |||
Households | Fixed investment | Net export |
Confidence indicators (seasonally adjusted balances)
30 | ||||||||||
20 | ||||||||||
10 | ||||||||||
0 | ||||||||||
-10 | ||||||||||
-20 | ||||||||||
-30 | ||||||||||
-4001/03 | 01/05 | 01/07 | 01/09 | 01/11 | 01/13 | 01/15 | 01/17 | 01/19 | 01/21 | 04/24 |
Total | Consumer | Business |
KB Group results as of 31 March 2024 | 7 |
Agenda
Highlights as of 31 March 2024 and update on New Digital Bank
Business performance
Financial performance
Asset quality and cost of risk
Capital and dividends
Outlook for 2024
Appendix
KB Group results as of 31 March 2024 | 8 |
Gross loans to clients up 4.6%
Net loans to deposits ratio at 79.9%. Liquidity coverage ratio 154%
Consumer lending growth boosted by credit cards and overdrafts
Housing loans (mortgages + building society loans) outstanding volume up 4.5%. New sales up by 34.2% YoY. Sales in 1Q 2024 influenced by attention to sustainable profitability of portfolio across the rate cycle
Sales volume of housing loans (KB mortgages + MPSS loans) | |||||||
(CZK million) | +34.2% | -22.9% | |||||
9,609 | 9,245 | 11,069 | 8,536 | ||||
5,021 | 6,360 | ||||||
4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 |
Business lending growth trend sustained adjusting for a few larger deals from 4Q 2023. Investment activity of corporations, demand for working capital financing still subdued, selective approach of the bank remains
- Positive contribution from 7.7% YoY depreciation of CZK v. EUR represents 2.1% of total lending. Positive contribution from 2.3% QoQ depreciation of CZK in 1Q 2024 represents 0.7% of total loans
Loans to clients
Group lending (w/o repo, but incl. client bonds)
(CZK billion) | +4.6% | ||||||
-0.3% | |||||||
784.9 | 789.1 | 794.6 | 808.3 | 827.7 | 825.5 | ||
85.3 | 86.5 | 88.5 | 90.6 | 92.5 | 93.7 | 8.3% | |
268.7 | 269.6 | 271.3 | 273.5 | 276.4 | 278.5 | 3.3% | |
34.8 | 35.9 | 36.8 | 37.0 | 37.2 | 38.2 | 6.5% | |
396.1 | 397.0 | 398.1 | 407.1 | 421.6 | 415.0 | 4.5% | |
4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | ||
Building saving loans | Consumer loans | ||||||
Mortgages to individuals | Business and other loans |
Group business and other loans (w/o repo, but incl. client bonds) | |||||||||||||||||||||
(CZK billion) | +4.5% | ||||||||||||||||||||
-1.6% | |||||||||||||||||||||
396.1 | 397.0 | 398.1 | 407.1 | 421.6 | 415.0 | 1.6% | |||||||||||||||
47.5 | 47.6 | ||||||||||||||||||||
47.4 | |||||||||||||||||||||
46.8 | 46.8 | 47.4 | |||||||||||||||||||
317.9 | 318.7 | 318.3 | 326.5 | 339.9 | 332.7 | 4.4% | |||||||||||||||
10.2% | |||||||||||||||||||||
32.5 | 33.2 | 34.2 | 34.7 | ||||||||||||||||||
31.5 | 31.5 | ||||||||||||||||||||
4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | ||||||||||||||||
Small businesses (KB, ESSOX) | SGEF leasing | ||||||||||||||||||||
KB corporates, ESSOX Wholesale, Factoring and other | |||||||||||||||||||||
KB Group results as of 31 March 2024 | 9 |
Deposits and other AUM | ||||||||||||||||||||
Client deposits +7.2%, | Group deposits (excluding repo operations) | |||||||||||||||||||
other AUM up +15.3% YoY | (CZK billion) | +7.2% | ||||||||||||||||||
+4.3% | ||||||||||||||||||||
Non-deposit assets under management | 916.8 | 979.5 | 994.7 | 1,022.4 | 1,006.2 | 1,049.8 | -5.2% | |||||||||||||
(CZK million) | ||||||||||||||||||||
+15.3% | 54.2 | 53.9 | 52.8 | 52.3 | 51.3 | |||||||||||||||
56.0 | ||||||||||||||||||||
+4.2% | 327.8 | 320.3 | 323.7 | 329.0 | 337.9 | 337.3 | 5.3% | |||||||||||||
216.6 | 227.0 | 235.6 | 240.7 | 251.3 | 261.8 | 526.3 | 597.8 | 610.9 | 634.0 | 608.4 | 646.1 | 8.1% | ||||||||
141.0 | 30.2% | |||||||||||||||||||
98.3 | 108.3 | 116.4 | 122.4 | 131.4 | 6.7 | 7.3 | 6.2 | 6.7 | 7.5 | 15.1 | ||||||||||
45.3 | 45.4 | 45.3 | 45.0 | 45.7 | 46.7 | 2.7% | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | ||||||||
73.0 | 73.3 | 74.0 | 73.4 | 74.1 | 74.1 | 1.1% | Building savings | Business deposits | ||||||||||||
4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | |||||||||||||||
KB Individual deposits | Other deposits | |||||||||||||||||||
AUM in mutual funds | ||||||||||||||||||||
KP Life insurance reserves (total savings) | +7.2% | |||||||||||||||||||
Client assets managed by KB Pension company | ||||||||||||||||||||
+4.3% | ||||||||||||||||||||
Sales of mutual funds | 916.8 | 979.5 | 994.7 | 1,022.4 | 1,006.2 | 1,049.8 | ||||||||||||||
572.3 | 550.9 | -4.4% | ||||||||||||||||||
(CZK billion) | 12.3 | 10.6 | 9.3 | 9.4 | 11.9 | 653.5 | 576.3 | 568.4 | 649.6 | |||||||||||
7.4 | ||||||||||||||||||||
Gross | 1.910.4 | 2.79.2 | ||||||||||||||||||
1.36.0 | 1.98.7 | 1.57.8 | 1.67.8 | 255.8 | 395.7 | 419.9 | 443.3 | 349.4 | 484.7 | 22.5% | ||||||||||
Net | 4.3 | 8.8 | 5.9 | 5.3 | 4.7 | 5.4 | 7.5 | 7.6 | 6.4 | 6.8 | 7.1 | 14.2 | ||||||||
8.3 | 0.5 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | |||||||||||||
0.04.3 | 0.05.9 | 0.15.2 | -0.24.9 | 0.45.0 | ||||||||||||||||
4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | Current accounts | Other payables to customers | |||||||||||||
Term and savings accounts | ||||||||||||||||||||
Fixed income funds | Equity & other funds | |||||||||||||||||||
KB Group results as of 31 March 2024 | 10 |
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Komercní banka a.s. published this content on 03 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2024 05:12:09 UTC.
