Komercni Banka, a.s. · PSECZ:KOMB
Komercni Banka, a.s — Q1 2004 Earnings Presentation
38 slides from Komercni Banka, a.s's earnings presentation, Apr 30, 2004
Slide 1: Financial Results as at 31 March 2004
Financial Results as at 31 March 2004 (International Financial Reporting Standards) Prague - 30 April 2004
Slide 2: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Financial Results as at 31 March 2004 – Prague – 30 April 2004 1
Slide 3: Highlights of the First Quarter 2004: Positive financial results
HIGHLIGHTS OF THE FIRST QUARTER 2004 Positive financial results • Upturn in Net interest income; y-on-y increase by 1% • Increasing business operations brought increase in Net fees and commissions by 5% y-on-y • Y-on-y decrease in General administrative expenses by 4%; total costs went up by 3% • Lo
Slide 4: Highlights of the First Quarter 2004: Strong business performance continues
HIGHLIGHTS OF THE FIRST QUARTER 2004 Strong business performance continues • Number of customers increased by 7% to 1,350 thousand • 714 thousand clients, i.e. 53% of the total use one of direct banking channels • Number of packages for individuals increased by 77% y-on-y • 68 thousand small busines
Slide 5: Loans to Individuals
LOANS TO INDIVIDUALS Retail loans increase dynamically Mortgages Consumer loans Total volume in CZK mil. Total volume in CZK mil. 23,893 + 48% 16,092 + 16% 9,161 7,918 31. 3. 2003 31. 3. 2004 31. 3. 2003 31. 3. 2004 • Total mortgages to individuals rose by 48% • Total consumer loans increased by 16%
Slide 6: Loans to Small Businesses
LOANS TO SMALL BUSINESSES Success of new products and processes CZK million Loans to small businesses Number of granted loans in the first quarter Volume granted in CZK mil. in the first quarter Profi loans* Profi loans* Other Business loans Other Business loans 1,592 1,671 + 216% 498 + 376% 1,089 5
Slide 7: Medium Enterprises and Municipalities
MEDIUM ENTERPRISES AND MUNICIPALITIES Growing dynamics in lending to this segment Medium Enterprises and Municipalities Volume of granted loans in 1Q in CZK mil. Total volume of loans in CZK mil. + 16% 32,200 27,700 12,100 + 89% 6,400 31. 3. 2003 31. 3. 2004 31. 3. 2003 31. 3. 2004 Financial Results
Slide 8: Individuals and Small Businesses - Penetration
INDIVIDUALS AND SMALL BUSINESSES - PENETRATION Exploitation of cross-selling potential continues Penetration ratio* 31.3.2003 31.12.2003 31.3.2004 Change 1Q 04/ 1Q 03 Individuals PACKAGES 33.3 49.0 54.2 + 62.8% MORTGAGES 1.7 2.1 2.2 + 29.4% CONSUMER LOANS 7.9 8.4 8.6 + 8.9% PAYMENT CARDS 57.5 63.0 6
Slide 9: Payment Cards
PAYMENT CARDS Utilisation of cards keeps increasing 31. 3. 2003 31. 3. 2004 YonY Change Payment cards 1,351 thousand 1,819 thousand +34.6% issued Credit cards issued 29,200 50,300 +72.3% Number of merchants 18,479 19,339 +4.7% accepting payment cards Number of POS 8,666 10,478 +20.9% 1Q 2003 1Q 2004
Slide 10: Loan Portfolio Development – Premier Bank
LOAN PORTFOLIO DEVELOPMENT – PREMIER BANK 11% growth in total volume of the portfolio Business loans Volume of loans (Premier bank) Mortgage loans gross amount, CZK billion Consumer loans Y-on-Y increase + 11% • Year-on-year increase of the Premier 137.6 Bank portfolio by 11% 127.4 133.6 123.6 123.0
Slide 11: Deposits
DEPOSITS Strong and stable deposits base Volume of deposits Loans from customers (repo transactions excluded) Term deposits and saving accounts CZK billion Current accounts 345.9 344.0 343.1 345.5 329.2 36.3 29.8 33.8 44.1 33.4 • Stable depositary base • Current accounts make up 57% of total 132.0 1
Slide 12: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Financial Results as at 31 March 2004 – Prague – 30 April 2004 11
Slide 13: Financial Results and Ratios
FINANCIAL RESULTS AND RATIOS Stabilised Net banking income CZK million, unconsolidated Profit and Loss Statement 1Q 2003 1Q 2004 Change 04/03 Net banking income 5,290 5,287 0.0% Operating costs -2,809 -2,880 + 2.5% Net operating income 2,480 2,408 - 2.9% Provisions for loan and investment losses -31
Slide 14: Net Interest Income
NET INTEREST INCOME Increasing NII from customers impacted by the loan growth CZK million, unconsolidated Net Banking Income Net Interest Income Banks Customers ČKA 0.0% Securities 5,290 5,287 2,965 2,987 • Slight increase of 0.7% year-on-year • Still continuing negative impact of low 1,855 - 10.6%
Slide 15: Net Fees and Commissions
NET FEES AND COMMISSIONS 9% growth in Non-FX fees and commissions CZK million, unconsolidated Net Banking Income Net Fees and Commissions Non-FX FX clean payments 0.0% FX cash conversions 5,290 5,287 2,002 2,094 • Non-FX F&C - positive impacted by: − loan administration − account maintenance 1,538 +
Slide 16: Trading Profits and Other Income
TRADING PROFITS AND OTHER INCOME CZK million, unconsolidated Net Banking Income Net profit from financial operations FX operations Securities and security Net profit from fair value changes of derivatives AFS securities in 1Q 2003 0.0% 284 Interest and Commodity 5,290 5,287 Derivatives 62 175 • Prof
Slide 17: Operating Costs
OPERATING COSTS Total costs under control CZK million, unconsolidated Operating Costs Personnel expenses Impact of released overacruals • In both 1Q 2003 and 1Q 2004 1,058 1,154 release of overaccruals of bonuses • Lower Personnel expenses in 1Q + 2.5% 2003 as the release of 2,809 2,880 overaccruals
Slide 18: Operating Costs Q-on-Q
OPERATING COSTS Operating costs Q-on-Q CZK million, unconsolidated Depreciation, impairment and disposal of fixed assets General administrative expenses Personnel expenses 3,242 3,033 2,809 2,704 2,880 425 415 373 340 345 1,170 1,353 1,412 1,261 1,003 1,058 1,357 1,356 1,647 1,154 1Q 2003 2Q 2003 3Q
Slide 19: Provisions for Loan Losses and Impairment of Securities, Net Profit from Sale of Subsidiaries
PROVISIONS FOR LOAN LOSSES AND IMPAIRMENT OF SECURITIES, NET PROFIT FROM SALE OF SUBSIDIARIES AND ASSOCIATES CZK million, unconsolidated Total provisions and impairment of securities Provisions for Impairment of securities Comments • Low cost of risk on credit portfolio -318 • No Provisions for impa
Slide 20: Balance Sheet
BALANCE SHEET CZK million, unconsolidated Assets Liabilities and shareholders’ equity Change Change 447,565 456,940 447,565 456,940 Cash and balances 11,020 18,959 18,710 12,340 - 10.7% Amounts due - 1.3% with central bank to banks Amounts due from 201,638 215,306 + 6.8% banks Amounts due 349,505 35
Slide 21: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Financial Results as at 31 March 2004 – Prague – 30 April 2004 20
Slide 22: Client Portfolio Evolution
CLIENT PORTFOLIO EVOLUTION CZK billion Portfolio to be sold or Guaranteed portfolio On-balance Sheet Non-guaranteed portfolio transferred to CKA KB portfolio 147.7 146.5 138.5 142.3 138.3 1.3 1.3 46.7 30.7 18.7 101.0 115.8 119.6 137.2 141.0 31.12.2000 31.12.2001 31.12.2002 31.12.2003 31.3.2004 Off-b
Slide 23: Loans and Advances to Customers
LOANS AND ADVANCES TO CUSTOMERS 3% growth from the beginning of the year CZK million Client loans Specific and general provisions for loan losses On-balance sheet On-balance sheet Excluding loans of CZK 1,290 mil. to be transferred to CKA in the 1H 2004 + 2.8% 140,969 137,170 5,077 + 5.8% 5,374 Tota
Slide 24: CDO Portfolio
CDO PORTFOLIO Coverage of the portfolio in line with the model Specific provisions / Invested amount Date of acquisition: September 2000 - April 2001 Initial invested amount: USD 426 mil. 19.3% 20.8% Invested amount as at 31.3.2004: USD 389 mil. Total coverage (as at 31.3.2004): USD 81 mil. Provisio
Slide 25: Financial Results and Ratios – Consolidated
FINANCIAL RESULTS AND RATIOS – CONSOLIDATED Increase in profit by 24% CZK million Profit and Loss Statement 1Q 2003 1Q 2004 Change 04/03 Net banking income 5,762 5,542 - 3.8% Operating costs - 3,153 - 3,043 - 3.5% Income from not fully consolidated companies and exclusion of subsidiaries from consol
Slide 26: Subsidiary and Associated Undertakings Results
SUBSIDIARY AND ASSOCIATED UNDERTAKINGS RESULTS As at 31 March 2004, CZK mil., CAS/SAS Share of KB Profit after tax Equity Assets ASIS, a.s.* 100% NA NA NA Factoring KB, a.s. 100% 8 135 2,739 FranFinance Consumer Credit, s.r.o. 51% -14 193 609 Investiční kapitálová společnost, a.s. 100% 31 350 398 Ko
Slide 27: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Financial Results as at 31 March 2004 – Prague – 30 April 2004 26
Slide 28: Number of Clients
NUMBER OF CLIENTS Thousands Individuals + 88 thousands clients Entrepreneurs and Corporates +7% y-on-y 1,331 1,350 1,274 1,279 1,290 1,262 965 974 980 992 1,034 1,055 297 300 299 298 297 295 December 2002 March 2003 June 2003 September 2003 December 2003 March 2004 Financial Results as at 31 March 2
Slide 29: Direct Banking
DIRECT BANKING One half of KB clients use direct banking Guaranteed Payment Y-on-Y Increase PC Banking 268 thousand clients (+ 60%) 713,965 Internet Banking 647,032 24,197 Phone Banking 22,735 23,657 567,290 22,040 506,668 23,786 168,174 21,466 146,738 445,851 23,616 21,009 116,028 392,279 23,192 20
Slide 30: Sales Network for All Segments
SALES NETWORK FOR ALL SEGMENTS Individuals Medium & Enterprises Small and Corporates Businesses Municipalities 337 39 8 Points MEM Business Corporate Business of Sales Centers Centers (including 40 regional branches) Number of ATMs grew year on year by 75 to the total of 528 Financial Results as at
Slide 31: Key Products for Individuals
KEY PRODUCTS FOR INDIVIDUALS 31. 3. 2003 31. 3. 2004 YonY Change 134,444 190,260 IDEAL + 41.5% packages packages 55,119 215,371 PERFEKT KONTO + 290.7% packages packages 49,813 65,814 + 32.1% EXPRESS KONTO packages packages 22,925 24,337 + 6.2% A-KONTO packages packages 64,117 82,330 + 28.4% GAUDEAMU
Slide 32: Key Products for Small Businesses
KEY PRODUCTS FOR SMALL BUSINESSES 31. 12. 2003* 31. 3. 2004 YTD Change 31,117 48,480 EFEKT 55.8% packages packages 9,222 13,755 KOMFORT 49.2% packages packages 833 1,020 EXCELENT 22.5% packages packages 3,963 4,388 10.7% OPTIMUM MEDICUM packages packages 31. 3. 2003 31. 3. 2004 3,275 total loans 7,1
Slide 33: Loan Products Development
LOAN PRODUCTS DEVELOPMENT Strong growth in Small businesses and MEM segment CZK million SMALL BUSINESSES 31. 3. 2003 31. 3. 2004 YonY Change Number of granted 351 1,671 376.1% loans in the quarter Volume of granted 504 1,592 215.9% loans in the quarter Number of total loans 3,275 7,132 117.8% Number
Slide 34: Cross-Selling Activities within the KB Group
CROSS-SELLING ACTIVITIES WITHIN THE KB GROUP Number of sold contracts 31.3. 2003 31.3. 2004 Change 04/03 through KB network Life insurance Vital 9,200 11,400 +24% Mutual funds (sales in CZK bil.) 3.0 1.9 -37% Pension insurance 3,900 4,700 +21% Factoring 11 37 +236% Building saving 11,500 2,700 -77%
Slide 35: Development of KB's Share Price and Index PX50
DEVELOPMENT OF KB’s SHARE PRICE AND INDEX PX50 CZK 3 400 3 200 1 200 3 000 2 800 1 000 2 600 2 400 2 200 800 2 000 1 800 1 600 600 1 400 1 200 400 1 000 800 600 200 400 200 0 0 X-0 I-0 IV- VII X- I-0 IV- VII X-0 I-0 IV- 1 2 02 -02 02 3 03 -03 3 4 04 KB PX 50 Financial Results as at 31 March 2004 – P
Slide 36: Interest Rates Trend
31 .1 2. 1,80% 2,30% 2,80% 3,30% 3,80% 4,30% 4,80% 5,30% 0 31 1 .1 . 28 02 .2 .0 31 2 .3 .0 30 2 .4 .0 31 2 .5 .0 30 2 .6 .0 31 2 .7 .0 Pribor 3M 31 2 .8 .0 30 2 .9 31 .02 .1 0 INTEREST RATES TREND 30 .02 .1 1 31 .02 .1 Pribor 6M 2. 0 31 2 .1 . 28 03 .2 .0 31 3 .3 .0 30 3 .4 .0 31 3 .5 .0 30 3 .6 .0
Slide 37: Structure of Shareholders
STRUCTURE OF SHAREHOLDERS Major shareholders of Komerční banka, a. s. with over 5% of the share capital as at 31 March 2004 Number of shares outstanding - 38 million Others Société Générale S.A. 34.10% 60.35% The Bank of New York ADR Department 5.55% Financial Results as at 31 March 2004 – Prague –
Slide 38: Contacts: Investor Relations
CONTACTS Investor Relations Ilona Katzová Pavla Škvorová Head of Investor Relations Investor Relations Officer Telephone: +420 222 432 156 Telephone: +420 222 432 734 E-mail: ilona_katzova@kb.cz E-mail: pavla_skvorova@kb.cz Financial Results as at 31 March 2004 – Prague – 30 April 2004 37