Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — H1 2011 Earnings Presentation
37 slides from Komercni Banka, A.s's earnings presentation, Aug 3, 2011
Slide 1: KB Group Unaudited Financial Results as at 30 June 2011
KB Group Unaudited Financial Results as at 30 June 2011 (International Financial Reporting Standards) Prague 3 August 2011
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 Cost of Risk Appendix 3 KB 2Q 2011 results – Prague – 3 August 2011
Slide 4: Czech economy: Economy mildly accelerating
Czech economy Economy mildly accelerating Real GDP growth (%) Expected Czech GDP growth in 2011 continues to be driven by net exports 7.0 6.1 Industrial production benefits from strong foreign 2.3 2.2 2.3 demand, fixed investments supported by improved -4.0 capacity utilisation Labour market m
Slide 5: Highlights of the first half of 2011
Highlights of the first half of 2011 Year on year comparisons Adjusted net profit rising, improvement in business volumes Gross lending to clients up 9.4% to CZK 421.9 billion underpinned by acquisition of SGEF. Organic growth accelerated in 2Q 2011 Group deposits rose by 1.9% to 546.8 billion.
Slide 6: Business achievements in Q2 2011 – Individuals
Business achievements and initiatives in the second quarter of 2011 – Individuals Year on year comparisons Addressing clients‘ needs for high quality financial solutions KB improved its mortgage market share as outstanding volume of mortgages rose 11.0% to CZK 115.7 billion. New sales of mortgages
Slide 7: Business achievements in Q2 2011 – Businesses
Business achievements and initiatives in the second quarter of 2011 – Businesses Year on year comparisons Reinforcing leadership in innovations and service quality Improved dynamics in small business lending. Volume of loans up by 8.2% to CZK 26.6 billion Gross volume of receivables from clients
Slide 8: Group deposits
Group deposits CZK billion By Customers 541.2 536.5 535.3 538.1 536.1 546.8 Rise in deposits 68.0 68.5 69.0 69.0 69.2 70.4 152.8 152.2 151.3 153.7 154.2 156.3 YoY group deposits increased by 1.9%, QoQ up 27.5 27.8 28.2 28.8 29.0 29.7 by 2.0% KB represents 82% of CZK 546.8 billion of total 284.6
Slide 9: Group lending activities
Group lending activities Positive trends in lending CZK billion 421.9 385.6 389.0 399.7 398.2 382.0 50.6 46.4 47.6 48.7 49.7 50.0 Gross loans rose 9.4% YoY, 5.9% QoQ (adjusted 115.7 101.7 104.2 106.4 109.3 112.0 for SGEF acquisition up by 6.1% YoY, 2.7% QoQ) 28.3 28.3 28.7 28.4 28.3 28.1 Busines
Slide 10: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Cost of Risk Appendix 10 KB 2Q 2011 results – Prague – 3 August 2011
Slide 11: Consolidated financial results
Consolidated financial results Change Change Profit and Loss Statement 1H 2010 1H 2011 1H 2011 YoY YoY (CZK million, unaudited) Pro forma Pro forma Net interest income 10,709 10,941 10,834 2.2% 1.2% Net fees & commissions 3,766 3,748 3,732 -0.5% -0.9% Income from financial operations 1,467 1,385 1,3
Slide 12: Recurring financial results
Recurring financial results Change Change Recurring P&L 1H 2010 1H 2010 1H 2011 1H 2011 YoY YoY (CZK million, unaudited) Reported Recurring Reported Recurring Reported Recurring Net interest income 10,709 10,650 10,941 10,808 2.2% 1.5% Net fees & commissions 3,766 3,766 3,748 3,732 -0.5% -0.9% Incom
Slide 13: Consolidated financial results
Consolidated financial results Change Change Profit and Loss Statement 2Q 2010 1Q 2011 2Q 2011 2Q 2011 QoQ QoQ (CZK million, unaudited) Pro forma Pro forma Net interest income 5,415 5,372 5,569 5,462 3.7% 1.7% Net fees & commissions 1,911 1,866 1,882 1,866 0.9% 0.0% Income from financial operations
Slide 14: Consolidated financial results – Balance Sheet
Consolidated financial results 30 June 31 Dec 30 June 30 June Change Change Balance Sheet 2010 2010 2011 2011 YtD YtD (CZK million, unaudited) Pro forma Pro forma Assets 693,270 698,014 724,208 710,601 3.8% 1.8% Cash and balances with central bank 9,333 13,689 11,262 11,262 -17.7% -17.7% Amounts due
Slide 15: Consolidated financial ratios
Consolidated financial ratios 30 June 31 March 30 June 30 June Change Change Key ratios and indicators 2010 2011 2011 2011 YoY YoY (year-to-date) Pro forma Pro forma Capital adequacy 14.7% 15.5% 16.1% 16.6% Tier 1 ratio 13.5% 14.2% 14.6% 15.1% Total capital requirement (CZK billion) 28.4 27.
Slide 16: Net interest income
Net interest income Interest income up thanks to volume growth 5,294 5,415 5,449 5,569 5,273 5,372 NII in 1H up by 2.2% YoY (+1.2% adjusted for SGEF 410 504 431 498 559 450 acquisition). 2Q up 3.7% QoQ (+1.7% adjusted) 1,982 2,013 2,021 2,122 2,078 2,198 NII at subsidiaries – ESSOX +7%, Modrá py
Slide 17: Net fees and commissions
Net fees and commissions Fee income affected by price pressure and more external sales 2,028 1,911 1,931 1,866 1,882 Fee income in 1H down 0.5% YoY (-0.9% adjusted for 1,855 167 211 175 174 193 160 SGEF acquisition). 2Q up 0.9% QoQ (flat adjusted) 367 408 400 396 416 416 Maintenance fees – sligh
Slide 18: Net profit from financial operations
Net profit from financial operations Decreased levels of market activity 864 Net profit from financial operations in 1H decreased by 782 804 685 713 5.6% YoY (-5.2% adjusted for SGEF acquisition). 2Q 672 result down 5.8% QoQ (-5.0% adjusted) 488 434 419 345 394 344 Treasury operations – low mark
Slide 19: Operating costs
Operating costs Supporting business growth 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 OPEX in 1H rose by 7.3% YoY (6.7% adjusted for SGEF acquisition). In 2Q OPEX up 8.0% QoQ (6.8% adj.). YoY comparison affected by positive one-offs -1,457 -1,514 -1,613 -1,491 -1,605 -1,653 booked in 2010 (CZ
Slide 20: Shareholders' equity
Shareholders‘ equity Total shareholders‘ equity Total shareholders‘ equity -1,120 as at 31 December 2010 as at 30 June 2011 Shareholders' equity 31/12/2010 1/1/2011 Increase Decrease 30/06/2011 Share capital 19,005 19,005 19,005 Capital and reserve funds 36,174 49,504 -10,247 39,256 - Retained earni
Slide 21: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Cost of Risk Appendix 21 KB 2Q 2011 results – Prague – 3 August 2011
Slide 22: Loan quality
Loan quality Increased volume with stable loan quality Gross lending CZK billion 399.7 421.9 389.0 398.2 Loan exposure rose by 9.4% YoY and by 382.0 385.6 5.9% QoQ driven by organic growth and acquisition of SGEF 349.2 360.9 359.4 380.7 340.8 345.8 Share of Standard and Watch loan exposure stabl
Slide 23: Cost of risk
Cost of risk Cost of risk negatively affected by impairment of Greek bonds 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 98 92 133 120 YTD cost of risk up at CZK 2.7 billion in 1H 83 80 98 55 70 2011 compared to CZK 1.8 billion in 1H 2010 85 66 72 52 55 49 20 8 4 35 10 2Q 2011 non-commercial c
Slide 24: Commercial cost of risk - Corporate
Commercial cost of risk - Corporate KB Group – Corporate Segments Zoom on corporate client segments 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 YTD corporate cost of risk down to 42 bps in 94 95 82 80 57 42 150 100 50 0 1H 2011 compared to 95 bps in 1H 2010 -123 -50 -250 -344 -273 -100 -150 -4
Slide 25: Commercial cost of risk - Retail
Commercial cost of risk - Retail KB Group – Retail Segments Zoom on retail client segments 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 250 YTD cost of risk down at 93 bps in 1H 2011 169 178 175 171 168 166 115 150 from 100 bps in 1H 2010 100 97 94 98 93 107 88 85 83 88 82 50 QoQ decrease in
Slide 26: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Cost of Risk Appendix 26 KB 2Q 2011 results – Prague – 3 August 2011
Slide 27: Number of clients and distribution network
Number of clients and distribution network Evolution of clients‘ portfolio and networks Number of KB clients (CZ) KB Group‘s 2.67 million clients, of which KB bank 1,577,000 clients (-1%) MPSS 669,000 clients (-6%) PFKB 498,000 clients (+0%) 1,577 1,629 1,620 1,590 1,577 1,515 ESSOX 295,00
Slide 28: KB consolidated group
KB consolidated group Pension Penzijní fond KB #4 pension fund in the Czech Republic with 498,000 clients insurance (100%) Modrá pyramida Building Second largest building society according to loan volume with 669,000 clients stavební society and 1,300 strong agent distribution network spořitelna (10
Slide 29: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 1H 2010 1H 2011 Change YoY MPSS Volume of new loans (CZK million) 4,269 4,331 1% Volume of total loans (gross, CZK million) 47,649 50,639 6% Target volume of new contracts (CZK million) 16,392 13,443 -18% Volume of deposits (CZK million) 68,512 70,401 3% Aver
Slide 30: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 1H 2010 1H 2011 Change YoY Factoring Factoring turnover (CZK million) 5,341 6,929 30% KB Volume of total financing (gross, CZK million) 1,790 2,198 23% Average number of FTEs 39 38 -3% KP Newly concluded policies (number) 224,717 408,430 82% of which in life
Slide 31: 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. 5,059 n.a. 66,080 n.a. 618,377 n.a. - o/w KB branch in Slovakia IFRS 100% 24 n.a. n.a. n.a. 9,064 n.a. ESSOX, s.r.o. IFRS 51% 141 76.3% 2,
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: Macroeconomic environment
Macroeconomic environment Czech Republic Macroeconomic Indicators 2006 2007 2008 2009 2010 2011* Real GDP (%, average) 7.0 6.1 2.3 -4.0 2.2 2.3 Inflation (%, average) 2.5 2.8 6.3 1.0 1.5 1.8 Household consumption (%, average) 5.2 4.9 3.4 -0.2 -0.1 -0.1 Unemployment (%, av., MLSA meth.) 8.2 6.7 5.5 8
Slide 34: Interest rates evolution
Interest rates evolution (for the period 28 December 2001 – 29 July 2011) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 28/12/2001 28/12/2002 28/12/2003 28/12/2004 28/12/2005 28/12/2006 28/12/2007 28/12/2008 28/12/2009 28/12/2010 Pribor 3M Pribor 6M ČNB REPO Rate 34 KB 2Q 2011 results – Pra
Slide 35: 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 July 2011) 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 01/10
Slide 36: KB shareholders
KB shareholders As at 30 June 2011 According to excerpt from the Securities centre Others 39.6% Société Générale 60.4% 36 KB 2Q 2011 results – Prague – 3 August 2011
Slide 37: Investor Relations
Investor Relations Jakub Černý, Georgina Olegrová, Robert Janeček Tel.: +420 955 532 156, 955 532 734, 955 532 155 E-mail: investor_relations@kb.cz - Internet: www.kb.cz 37 KB 2Q 2011 results – Prague – 3 August 2011