Prague, 3 November 2023
Komerční banka Group
Consolidated unaudited results as of 30 September 2023
and status of implementation of KB 2025 strategy
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 30 September 2023, 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 30 September 2023 | 2 |
Agenda
Highlights as of 30 September 2023
Asset quality and cost of risk
Outlook for the rest of 2023
KB 2025 Year 3 delivery
Appendix
KB Group results as of 30 September 2023 | 3 |
Highlights of 9M&Q3 2023
First nine months of 2023: Solid delivery amidst stagflationary economy
Nine months 2023 | Third quarter 2023 | |
Group net income | Group net income |
CZK 12.4billion | CZK 4.3billion |
-4.9% year on year | -5.7% quarter over quarter |
CZK 65.40 per share | CZK 22.59 per share |
ROE | ROE |
13.5% | 14.2% |
13.8% IFRIC linearised | |
Cost/Income ratio | Cost/Income ratio |
48.2% | 44.0% |
47.0% IFRIC linearised |
Solid business performance
Client loans | |
+2.7% YoY | +1.7% QoQ |
Faster consumer lending | |
Deposits | |
+1.2% YoY | +2.8% QoQ |
Solid growth year-to-date | |
Other AUM | +2.2% QoQ |
+14.7%YoY |
Loan to deposit ratio
79.3% (excluding repo operations)
Strong balance sheet
Liquidity coverage ratio
157%
Total capital ratio
20.2%
Core Tier I ratio
19.6%
Cost of risk
-16bps YoyNet release
- Following introduction of the 'New Era of Banking Written by KB' in April, more than 50,000 clients had enrolled in the new digital bank by September 2023
KB Group results as of 30 September 2023 | 4 |
Agenda
Highlights as of 30 September 2023
Macroeconomic environment
Asset quality and cost of risk
Outlook for the rest of 2023
KB 2025 Year 3 delivery
Appendix
KB Group results as of 30 September 2023 | 5 |
Czech economy looking for growth impetus
GDP in 3Q 20231 down -0.3% QoQ and down -0.6% YoY. Economic activity hindered mainly by weak household consumption and investments, while net exports contribute positively YoY, but negatively QoQ
Industrial production supported by car production. Czech car production in 9M 2023 up by 11.7% YoY. Construction still sluggish due to higher cost of financing and overall economic uncertainty
Tight labour market. Unemployment rate at 2.5% in August 2023.2 Wages in 2Q 2023 up +7.7% YoY nominal but down -3.1% YoY in real terms
Consumer price inflation at 6.9% YoY in September (-0.7 % MoM), retreating steadily. HICP (Eurostat) at 10.1% YoY in August
As of 29 September 2023, at 24.3 CZK per EUR, CZK v. EUR weaker by 2.6% QoQ but stronger by 0.9% YoY
CNB's main policy rate (2W repo rate) at 7% since June 2022. As of 29 September 2023, 3M PRIBOR at 7.1% (-16 bps YoY). IRS curve stays inverted albeit 5y-10y spread has narrowed: 5Y at 4.6% (-91 bps YoY) and 10Y IRS at 4.5% (-56 bps YoY). 10Y CZGB at 4.9% (-39 bps YoY)
Notes: Source of indicators Czech Statistical Office, CNB, unless stated otherwise.
- According to flash estimate of the Czech Statistical Office, published on 31 October 2023;
- According to Eurostat, seasonally adjusted
Macro
Czech GDP development (% year-on-year)
10 | 3.6 | KB Economic Research Forecast | ||||
5 | 2.4 | 1.6 | 2.5 | |||
0 | ||||||
-5 | -0.3 | |||||
-5.5 | ||||||
-10 | ||||||
2020 | 2021 | 2022 | 2023F | 2024F | 2025F | |
GDP | Government | Inventories | Others | |||
Households | Fixed investment | Net export |
Inflation and 2W repo rate development (% year-on-year)
20 | ||||||
KB Economic Research | ||||||
15 | Forecast | |||||
10 | ||||||
5 | ||||||
0 | ||||||
Jan-19 | Jan-20 | Jan-21 | Jan-22 | Jan-23 | Jan-24 | Jan-25 |
2W repo rate | Core Inflation | Inflation |
KB Group results as of 30 September 2023 | 6 |
Agenda
Highlights as of 30 September 2023
Business performance
Asset quality and cost of risk
Outlook for the rest of 2023
KB 2025 Year 3 delivery
Appendix
KB Group results as of 30 September 2023 | 7 |
Total loans to clients up 2.7%
Net loans to deposits ratio at 79.3%. Liquidity coverage ratio 157%
Consumer lending driven by successful offer of flexible loans granted online and at branches, seasonal slowdown in summer
Housing loans (mortgages + building society loans) up 3.8%. New sales of housing loans stabilising before potential upcoming catalysts
Sales volume of housing loans (KB mortgages + MPSS loans)
(CZK million) | +27.2% | -3.8% | |||||
10,134 | |||||||
7,266 | 6,360 | 9,609 | 9,245 | ||||
5,021 | |||||||
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 |
Business lending growth influenced by subdued investment activity of corporations, lower need for working capital financing, effects of FX rate fluctuations* on CZK value of EUR denominated business loans, and selective approach of the bank
- Negative contribution from 0.9% YoY appreciation of CZK v. EUR represents 0.2% of total lending. Positive contribution from 2.6% QoQ depreciation of CZK in 3Q 2023 represents 0.7% of total loans
Loans to clients | ||||||||||||||||||||||||||||||||||||||||||||
Group lending (w/o repo, but incl. client bonds) | ||||||||||||||||||||||||||||||||||||||||||||
(CZK billion) | +2.7% | |||||||||||||||||||||||||||||||||||||||||||
+1.7% | ||||||||||||||||||||||||||||||||||||||||||||
808.3 | ||||||||||||||||||||||||||||||||||||||||||||
769.4 | 787.2 | 784.9 | 789.1 | 794.6 | ||||||||||||||||||||||||||||||||||||||||
83.8 | 85.3 | 86.5 | 88.5 | 90.6 | 8.2% | |||||||||||||||||||||||||||||||||||||||
81.5 | ||||||||||||||||||||||||||||||||||||||||||||
266.2 | 267.1 | 268.7 | 269.6 | 271.3 | 273.5 | 2.4% | ||||||||||||||||||||||||||||||||||||||
37.0 | 6.9% | |||||||||||||||||||||||||||||||||||||||||||
34.7 | 34.8 | 35.9 | 36.8 | |||||||||||||||||||||||||||||||||||||||||
34.5 | ||||||||||||||||||||||||||||||||||||||||||||
387.2 | 401.6 | 396.1 | 397.0 | 398.1 | 407.1 | 1.4% | ||||||||||||||||||||||||||||||||||||||
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | |||||||||||||||||||||||||||||||||||||||
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) | +1.4% | +2.3% | ||||||||||||||||||||||||||||||||||||||||||
401.6 | 407.1 | |||||||||||||||||||||||||||||||||||||||||||
387.2 | 396.1 | 397.0 | 398.1 | |||||||||||||||||||||||||||||||||||||||||
47.4 | 47.4 | |||||||||||||||||||||||||||||||||||||||||||
47.7 | 46.8 | 46.8 | 47.4 | 0.0% | ||||||||||||||||||||||||||||||||||||||||
307.8 | 322.8 | 317.9 | 318.7 | 318.3 | 326.5 | |||||||||||||||||||||||||||||||||||||||
1.1% | ||||||||||||||||||||||||||||||||||||||||||||
5.9% | ||||||||||||||||||||||||||||||||||||||||||||
32.5 | 33.2 | |||||||||||||||||||||||||||||||||||||||||||
31.7 | 31.4 | 31.5 | 31.5 | |||||||||||||||||||||||||||||||||||||||||
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | |||||||||||||||||||||||||||||||||||||||
Small businesses (KB, ESSOX) | SGEF leasing | |||||||||||||||||||||||||||||||||||||||||||
KB corporates, ESSOX Wholesale, Factoring and other | ||||||||||||||||||||||||||||||||||||||||||||
KB Group results as of 30 September 2023 | 8 |
Deposits +1.2%, other AUM up 14.7% YoY
Non-deposit assets under management | ||||||||
(CZK million) | +14.7% | |||||||
+2.2% | ||||||||
240.7 | ||||||||
205.6 | 210.0 | 216.6 | 227.0 | 235.6 | 32.5% | |||
88.5 | 92.4 | 98.3 | 108.3 | 116.4 | 122.4 | |||
-1.2% | ||||||||
45.6 | 45.6 | 45.3 | 45.4 | 45.3 | 45.0 | |||
71.5 | 72.0 | 73.0 | 73.3 | 74.0 | 73.4 | 1.8% | ||
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 |
AUM in mutual funds
KP Life insurance reserves (total savings)
Client assets managed by KB Pension company
Sales of mutual funds | |||||||||
(CZK billion) | 12.3 | 10.6 | 9.3 | ||||||
8.9 | 7.2 | 7.4 | |||||||
Gross | 1.910.4 | ||||||||
2.46.5 | 1.45.8 | 1.36.0 | 1.98.7 | 1.57.8 | |||||
Net | 4.8 | 4.3 | 4.3 | 8.8 | 5.9 | 5.3 | |||
0.0 | 8.3 | ||||||||
0.2 | 4.6 | 0.1 | 4.2 | 4.3 | 0.5 | 0.0 | 5.9 | 0.1 | 5.2 |
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | ||||
Fixed income funds | Equity & other funds |
Deposits and other AUM | ||||||
Group deposits (excluding repo operations) | ||||||
(CZK billion) | +1.2% | |||||
+2.8% | ||||||
1,024.3 | 1,010.1 | 916.8 | 979.5 | 994.7 | 1,022.4 | |
58.0 | 56.6 | 54.2 | 53.9 | 52.8 | -6.8% | |
56.0 | ||||||
347.0 | 336.7 | 327.8 | 320.3 | 323.7 | 329.0 | -2.3% |
612.1 | 610.1 | 526.3 | 597.8 | 610.9 | 634.0 | 3.9% |
7.2 | 6.8 | 6.7 | 7.3 | 6.2 | 6.7 | |
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 |
Building savings | Business deposits | |
KB Individual deposits Other deposits
+1.2% | ||||||
+2.8% | ||||||
1,024.3 | 1,010.1 | 916.8 | 979.5 | 994.7 | 1,022.4 | |
676.9 | 648.1 | 653.5 | 576.3 | 568.4 | 572.3 | -11.7% |
338.9 | 354.2 | 255.8 | 395.7 | 419.9 | 443.3 | 25.2% |
-13.9% | ||||||
8.4 | 7.9 | 7.5 | 7.6 | 6.4 | 6.8 | |
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | |
Current accounts | Other payables to customers | |||||
Term and savings accounts |
KB Group results as of 30 September 2023 | 9 |
Agenda
Highlights as of 30 September 2023
Financial performance
Asset quality and cost of risk
Outlook for the rest of 2023
KB 2025 Year 3 delivery
Appendix
KB Group results as of 30 September 2023 | 10 |
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Disclaimer
Komercní banka a.s. published this content on 03 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2023 06:04:06 UTC.