Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — 1-3Q 2009 Earnings Presentation
38 slides from Komercni Banka, A.s's earnings presentation, Nov 4, 2009
Slide 1: KB Group Unaudited Financial Results as at 30 September 2009
KB Group Unaudited Financial Results as at 30 September 2009 (International Financial Reporting Standards) Prague 4 November 2009 KB 1-3Q 2009 results – Prague – 4 November 2009
Slide 2: Disclaimer
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
Slide 3: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Development Appendix 3 KB 1-3Q 2009 results – Prague – 4 November 2009
Slide 4: Czech economy: sharp fall in output caused by declined foreign demand
Czech economy Sharp fall in output caused by declined foreign demand 2Q 2009 GDP YoY down 5.5% but QoQ up 0.1% Real GDP growth (%) Final household consumption resilient (+1.6% YoY), government consumption still supportive (+2.7% YoY) , but gross capital formation fell 24.9%, of which gross fixed
Slide 5: Highlights of the first three quarters of 2009
Highlights of the first three quarters of 2009 Year on year comparisons Solid profitability in a difficult environment Total revenues up 2.7% to CZK 25.1 billion Continued lending, portfolio of client loans expanded by 5.3% to CZK 383.5 billion Net interest margin remains at a 3.5% level Out
Slide 6: Business achievements and initiatives – Individuals
Business achievements and initiatives in the first three quarters of 2009 – Individuals Year on year comparisons Activity affected by rising unemployment, but KB capturing selected market opportunities Number of KB individual clients rose by 24,000 (1.8%) to 1,358,000 Volume of gross loans provi
Slide 7: Business achievements and initiatives – Corporations
Business achievements and initiatives in the three quarters of 2009 – Corporations Year on year comparisons KB Group well placed to capitalize on the future economic recovery Loans to small businesses rose by 9.6% to CZK 24.6 billion. Lending to corporations afflicted mainly by decreased investmen
Slide 8: Group deposits
Group deposits CZK billion By Customers 532.5 551.1 554.6 538.8 532.1 524.9 Deposit volume suffering from 63.8 63.9 65.3 64.8 64.0 64.4 the economic headwind 151.8 154.3 147.3 156.9 154.0 153.7 24.4 25.0 25.7 26.0 26.4 YoY group deposits decreased by 4.8%, QoQ -1.4% 26.7 KB represents 82% of CZK
Slide 9: Group lending activities
Group lending activities Benefiting from diversification of CZK billion 378.9 382.5 383.5 364.3 374.0 the lending portfolio 350.7 40.5 42.0 44.0 37.5 39.3 35.9 86.5 90.5 92.6 96.3 98.3 Gross loans rose 5.3% YoY, 0.3% QoQ 82.3 27.2 28.4 28.8 29.3 30.4 31.0 Business loans declined by 1.3% YoY: S
Slide 10: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Development Appendix 10 KB 1-3Q 2009 results – Prague – 4 November 2009
Slide 11: Consolidated financial results: Profit and Loss Statement 1-3Q
Consolidated financial results Profit and Loss Statement Change 1-3Q 2008 1-3Q 2009 YoY (CZK million, unaudited) Net interest income 15,586 16,504 5.9% Net fees & commissions 6,048 5,739 -5.1% Income from financial operations 2,679 2,739 2.2% Other income 132 132 0.0% Net banking income 24,445 25,11
Slide 12: Consolidated financial results: Profit and Loss Statement 3Q
Consolidated financial results Profit and Loss Statement Change 3Q 2008 3Q 2009 YoY (CZK million, unaudited) Net interest income 5,276 5,484 3.9% Net fees & commissions 1,989 1,918 -3.6% Income from financial operations 956 699 -26.9% Other income 46 40 -13.0% Net banking income 8,267 8,141 -1.5% Pe
Slide 13: Consolidated financial results: Balance Sheet
Consolidated financial results Balance Sheet 30 Sep 31 Dec 30 Sep Change (CZK million, unaudited) 2008 2008 2009 YoY Assets 688,330 699,044 657,317 -4.5% Cash and balances with central bank 8,793 13,961 11,246 27.9% Amounts due from banks 167,530 146,098 105,768 -36.9% Loans and advances to customer
Slide 14: Key ratios and indicators
Consolidated financial ratios 30 Sep 30 Sep Change Key ratios and indicators 2008 2009 YoY Capital adequacy 12.5% 13.9% S Tier 1 ratio 11.1% 12.6% S Total capital requirement (CZK billion) 26.2 27.1 3.8% Capital requirement for credit risk (CZK billion) 22.1 23.2 5.0% Risk weighted assets for credit
Slide 15: Net interest income
Net interest income Better asset spreads and reinvestment opportunities offset liability margin compression 5,676 5,570 5,484 5,236 5,276 5,450 475 480 239 632 518 453 YoY increase in NII of 5.9%, QoQ down 1.5% 1,900 1,884 1,962 2,056 1,717 1,805 MPSS NII up 16%, ESSOX +28%, PFKB +15% YoY NII
Slide 16: Net fees and commissions
Net fees and commissions Economic environment weighs upon fee income 2,105 1,989 2,002 1,925 1,896 1,918 Fees down -5.1% YoY, -0.4% QoQ. Comparison 136 142 148 131 122 157 influenced by positive one-off in 2008 (interchange fees 507 504 497 485 499 495 settlement of CZK 205 million in 2008, of whi
Slide 17: Net profit from financial operations
Net profit from financial operations Client business returning to prevail in the revenue mix 1,543 1,143 Net profit from financial operations increased by 2.2% 956 1,085 YoY, QoQ result down 22.0% 958 896 632 1,069 699 Treasury operations – good result especially in the 538 606 first half of 200
Slide 18: Operating costs
Operating costs Well controlled operating costs 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 OPEX YoY lower by 3.0%, QoQ down 3.1% -1,558 -1,602 -1,664 -1,606 -1,587 -1,629 Personnel costs up 3.6% on year-over-year higher average headcount (+0.6%) and increase in average salary -1,653 -1,519
Slide 19: Shareholders' equity
Shareholders‘ equity Total shareholders‘ equity Total shareholders‘ equity - 313 as at 31 December 2008 as at 30 September 2009 Shareholders' equity 31/12/2008 1/1/2009 Increase Decrease 30/09/2009 Share capital 19,005 19,005 19,005 Capital and reserve funds 25,203 38,364 -6,812 31,553 - Retained ea
Slide 20: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Development Appendix 20 KB 1-3Q 2009 results – Prague – 4 November 2009
Slide 21: Loan quality
Loan quality Continued impacts from the on-going economic recession on loan quality CZK billion 383.5 378.9 382.5 Gross exposure 350.7 364.3 374.0 +0.3% (+CZK 1 billion) overall QoQ increase in loan exposure (+1% in Q2 2009), with some segment 335.5 341.2 342.4 342.4 343.2 disparities 324.2 Stab
Slide 22: Cost of risk
Cost of risk Continued rising trend in cost of risk for all client segments 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 89 112 QoQ provisions for loan losses increased from CZK 35 46 99 97 100 1 260 million in Q2 2009 to CZK 1 322 million in Q3 2009 110 88 93 33 38 51 0 11 11 7 3Q 2009 provi
Slide 23: Cost of risk: zoom on corporate client segments
Cost of risk Zoom on corporate client segments Cost of Risk - Client Concentration CZK million 1 600 YtD cost of risk rising from 67 bp in Q2 2009 to 72 bp Other client contributors 1 200 in Q3 2009 (excluding one-off case) Top 5 client No major shift of client concentration level: 800 contribut
Slide 24: Cost of risk: zoom on mass retail client segments
Cost of risk 3M Default Rate - Consumer Loans and Zoom on mass retail client segments 2.0% Credit Cards - KB Solo YtD cost of risk up from 95 bp in Q2 2009 to 99 bp in Q3 1.5% 2009 1.0% Some moderate rise in early risk indicators of consumer Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/200
Slide 25: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Development Appendix 25 KB 1-3Q 2009 results – Prague – 4 November 2009
Slide 26: Number of clients and distribution network
Number of clients and distribution network Development of clients‘ portfolio and networks Clients of KB bank (thousands) Clients KB bank 1,638,000 clients (+1%) MPSS 717,000 clients (-4%) 1,577 1,629 1,638 1,467 1,515 PFKB 493,000 clients (+2%) 1,407 ESSOX 294,000 active clients (+50%) N
Slide 27: KB consolidated group
KB consolidated group Pension Penzijní fond KB Fourth largest pension fund in the Czech Republic offering pension insurance to insurance (100%) almost 493 thousand clients. Modrá pyramida Building Third largest building society with 717,000 clients offering state-subsidised stavební society building
Slide 28: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 1-3Q 2008 1-3Q 2009 Change YoY MPSS Volume of new loans (CZK million) 8,159 7,746 -5% Volume of total loans (gross, CZK million) 37,500 43,992 17% Target volume of new contracts (CZK million) 26,636 25,518 -4% Volume of deposits (CZK million) 64,094 64,566 1%
Slide 29: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 1-3Q 2008 1-3Q 2009 Change YoY Factoring Factoring turnover (CZK million) 12,945 9,832 -24% KB New contracts (number) 139 144 4% Number of FTEs 42 41 -1% KBB Total client loans (gross, CZK milion) 5,283 5,359 1% Total client deposits (CZK milion) 2,105 2,100
Slide 30: Standalone results of KB group companies and associated undertakings
Standalone results of KB group companies and associated undertakings Account. Share of Net YoY Equity YoY Assets YoY standards KB Profit CZK million KB IFRS n.a. 7,891 -9.7% 58,363 7.5% 572,402 -4.9% ESSOX, s.r.o. IFRS 51% 143 9.2% 2,450 6.9% 10,491 23.3% Factoring KB, a.s. CAS 100% 45 2.3% 1,448 -2
Slide 31: Diversification of corporate loan exposure by sector
Diversification of corporate loan exposure by sector Zoom on corporate client segments / Sector diversification Exposure by Industry as of September 30, 2009 Public administration 7% Other industries Food and agriculture 8% 7% Real estate 5% Mining 1% Chemistry and pharmacy Finance and insurance 3%
Slide 32: Revaluation of MPSS balance sheet
Revaluation of MPSS balance sheet Background ► Remaining 60% in Modrá pyramida acquired in October 2006. Full consolidation of MPSS since 4Q 2006 ► Preliminary goodwill on acquisition of Modrá pyramida at CZK 2,741 mil. ► In accordance with IFRS 3 A&L valuation to be completed within 12 months after
Slide 33: Recurring profit: Pro-forma Profit and Loss without one-offs
Recurring profit Pro-forma Profit and Loss without one-offs Change Change 1-3Q 2008 1-3Q 2009 YoY 3Q 2008 3Q 2009 YoY Net banking income 24,047 24,934 3.7% 8,193 8,105 -1.1% Net interest income 15,365 16,388 6.7% 5,218 5,448 4.4% Non-interest income 8,682 8,546 -1.6% 2,975 2,658 -10.7% -13.2% Operat
Slide 34: Macroeconomic environment
Macroeconomic environment Czech Republic Macroeconomic Indicators 2005 2006 2007 2008 2009* Real GDP (%, average) 6.4 7.0 6.1 2.6 -4.3 Inflation (%, average) 1.9 2.5 2.8 6.3 1.0 Household consumption (%, average) 2.5 5.1 4.8 3.3 1.2 Unemployment (%, av., MLSA meth.) 8.9 8.0 6.5 5.5 8.4 M2 (%, averag
Slide 35: Interest rates evolution
Interest rates evolution (for the period 28 December 2001 – 29 October 2009) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 28/12/2001 28/12/2002 28/12/2003 28/12/2004 28/12/2005 28/12/2006 28/12/2007 28/12/2008 Pribor 3M Pribor 6M KB Reference Rate ČNB REPO Rate 35 KB 1-3Q 2009 results – Prague – 4 N
Slide 36: Development of KB's share price and PX Index
Development of KB‘s share price and PX Index (for the period 1 October 2001 – 29 October 2009) 4,800 2,100 4,300 1,900 1,700 3,800 1,500 3,300 1,300 2,800 1,100 2,300 900 1,800 700 1,300 500 800 300 01/10/2001 01/10/2002 01/10/2003 01/10/2004 01/10/2005 01/10/2006 01/10/2007 01/10/2008 01/10/2009 KB
Slide 37: KB shareholders
KB shareholders As at 30 September 2009 According to excerpt from the Securities centre Others 39.6% Société Générale 60.4% 37 KB 1-3Q 2009 results – Prague – 4 November 2009
Slide 38: Investor Relations
Investor Relations Jakub Černý, Renáta Buchtová, Georgina Olegrová Tel.: +420 955 532 156, 955 532 155, 955 532 734 E-mail: investor_relations@kb.cz - Internet: www.kb.cz 38 KB 1-3Q 2009 results – Prague – 4 November 2009