Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — Q1 2016 Earnings Presentation
34 slides from Komercni Banka, A.s's earnings presentation, May 4, 2016
Slide 1: Komerční banka Group Financial results as of 31 March 2016
Komerční banka Group Financial results as of 31 March 2016 According to International Financial Reporting Standards, consolidated, unaudited Prague, 4 May 2016
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 results 4 Financial results 10 Loan portfolio quality and cost of risk 19 Appendix 22 3
Slide 4: Economy of the Czech Republic
Economy of the Czech Republic GDP dynamics at the level of the potential growth of the economy Czech GDP rose by 4.0% YoY in 4Q15, driven by Real GDP outlook (YoY, %) domestic demand High base of fixed investments in 2015 driven by EU 4.2 subsidies to weigh down on 2016 dynamics 2.0 2.0 2.1 In
Slide 5: Komerční banka in the first quarter of 2016
Komerční banka in the first quarter of 2016 Resilient performance but result influenced mainly by front-loading of costs of Resolution Fund New financing for projects of starting up SMEs, provided with a support from EIF, as a unique bank credit product on the Czech market, the Profi loan Start Im
Slide 6: Selected deals of the first quarter of 2016
Selected deals of the first quarter of 2016 TELECOMMUNICATIONS MACHINERY RETAIL ČKD Blansko Engineering, a.s. KLENOTY AURUM, s.r.o. Term and Revolving Facilities Facilities Agreement Investment Loan Agreement CZK 4,049,000,000 CZK 177,500,000 CZK 130,000,000 Original Lender Complex bank services pro
Slide 7: Loans to clients
Loans to clients Good trend in loans, despite seasonal slowdown in corporate lending CZK billion 534.0 548.2 548.8 513.4 513.7 519.4 Gross loans up 6.8% YoY*, +0.1% QoQ 37.0 37.1 38.3 37.5 37.0 36.7 Group housing loans +10.9% YoY, of which 179.1 185.2 189.1 162.5 166.4 172.8 Dynamic mortgages
Slide 8: Deposits and other assets under management
Deposits and other assets under management Group deposits Client balances growing CZK billion 679.1 649.0 644.0 635.5 657.7 656.3 69.3 68.5 67.0 72.4 72.1 70.1 189.6 197.4 200.5 Total amounts due to clients +5.4% YoY, +3.5% QoQ. 178.4 181.1 185.6 Standard Group deposits (excluding repo) grew by +6
Slide 9: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 19 Appendix 22 9
Slide 10: Consolidated income statement
Consolidated income statement Stable revenues, OPEX affected by front-loading of annual costs for the Resolution Fund Change Δ YoY Profit and Loss Statement 1Q 2015 1Q 2016 YoY excluding (CZK million, unaudited) Restated* Reported Like-for-like* reg. funds* Net interest income 5,348 5,234 -2.1% -2.1
Slide 11: Consolidated statement of financial position
Consolidated statement of financial position Balance sheet growth driven mainly by deposits 31 Mar 31 Dec 31 Mar Change Change Balance Sheet 2015 2015 2016 YoY Ytd * (CZK million, unaudited) Pro forma Pro forma Reported Like-for-like Assets 912,188 891,555 933,291 2.3% 4.7% Cash and balances with ce
Slide 12: Shareholders' equity
Shareholders’ equity CF hedge reserve affected by decrease in market yields Contributions to equity in 1Q 2016 Shareholders’ equity rose year to date by 4.7% to 15 95 111,240 CZK 111.2 billion 2,464 -458 The generation of net profit and revaluation gains 2,894 106,229 on cash flow hedges added t
Slide 13: Financial ratios
Financial ratios Steady development of main indicators Key ratios and indicators 31 Mar 31 Dec 31 Mar Change Change 2015 2015 2016 YoY Ytd (year-to-date) Pro forma Pro forma Reported 1 Capital adequacy 16.7% 16.3% 16.0% q q 1 Tier 1 ratio 16.7% 16.3% 16.0% q q Total risk weighted assets (CZK billion
Slide 14: Net interest income
Net interest income Impact from low rates partly offset by volumes 5,420 5,348 5,321 5,334 5,354 5,234 NII down 2.1% YoY* in 1Q 2016, -2.2% QoQ* 466 467 413 396 349 319 NII from loans – driven by growth in volumes. Slight decline in spreads driven by intense competition on 2,493 2,500 2,533 2,56
Slide 15: Net fees and commissions
Net fees and commissions Fees stable year on year NFC in 1Q 2016 declined by 0.1% YoY, -3.7% QoQ 1,794 1,790 1,712 1,765 1,701 1,700 202 254 219 Deposit product fees – stabilising trend as majority of 226 224 267 222 211 203 clients have already switched to new accounts with 229 212 211 296 279
Slide 16: Net profit from financial operations
Net profit from financial operations Income from financial operations driven by demand for hedging and FX transactions 774 734 Net profit from financial operations in 1Q 2016 658 660 increased by 11.2% YoY, -5.2% QoQ 587 589 494 341 441 Strong IR and FX hedging activity for corporate 399 283 332
Slide 17: Operating expenditures
Operating expenditures Reported OPEX affected by front-loading of annual costs of the regulatory funds 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 OPEX excluding the cost of the Deposit Insurance 178 Fund, Resolution Fund and Investor Protection Fund -1,717 -1,677 -1,696 -1,720 -1,700 -1,692 w
Slide 18: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 19 Appendix 22 18
Slide 19: Loan portfolio quality
Loan portfolio quality Stable exposure with persisting good loan quality CZK billion Gross lending Loan exposure +6.8% YoY, QoQ stable 534.0 548.2 548.8 513.4 513.7 519.4 LUSR exposure down to 4% (5.3% in 1Q 2015) and NPL exposure down to 2.7% (3.8% 477.0 477.0 483.9 500.4 516.3 518.4 in 1Q 2015
Slide 20: Cost of Risk
Cost of Risk Cost of risk at satisfactory level Cost of Risk +106.4% YoY, -64.5% QoQ Total Cost of Risk (Year-to-date, in basis points) 34 38 Satisfactory Cost of Risk at 17 bps in 1Q 2016 21 26 16 7 14 (vs. 8 bps in 1Q 2015) 5 17 18 18 8 8 11 9 Very low Retail Cost of Risk driven by both 3 -2
Slide 21: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 19 Appendix 22 21
Slide 22: Number of clients and distribution network
Number of clients and distribution network Number of bank clients (ths., CZ) KB Group’s 2.4 million clients, of which KB bank 1,648,000 clients (+1%) MPSS 512,000 clients (-7%) KBPS 544,000 clients (-2%) 1,602 1,602 1,589 1,626 1,647 1,648 ESSOX 213,000 active clients (-20%) Network 39
Slide 23: Consolidated income statement – quarterly view
Consolidated income statement – quarterly view Change Change YoY QoQ Profit and Loss Statement 1Q 2015 4Q 2015 1Q 2016 Like-for- Like-for- (CZK million, unaudited) Pro forma Pro forma Reported like like Net interest income 5,348 5,354 5,234 -2.1% -2.2% Net fees & commissions 1,701 1,765 1,700 -0.1%
Slide 24: Consolidated balance sheet – reported and like-for-like
Consolidated balance sheet – reported and like-for-like 31 Mar 31 Mar 31 Dec 31 Dec 31 Mar Change Change Change Change Balance Sheet 2015 2015 2015 2015 2016 YoY Ytd YoY Ytd (CZK million, unaudited) Reported Pro forma Reported Pro forma Reported Reported Like-for-like Assets 912,188 912,188 891,555
Slide 25: KB consolidated group
KB consolidated group KB Penzijní Pension Management company for Transformed Fund (pension fund with 544,000 clients) and for společnost insurance new pension funds in 3rd pillars of the Czech pension system (100%) Modrá pyramida Building #3 largest building savings bank according to loan volume wit
Slide 26: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 Change 1Q 2015 1Q 2016 YoY MPSS Volume of new loans (CZK million) 866 2,079 140% Volume of total loans (gross, CZK million) 37,518 37,120 -1% Volume of deposits (CZK million) 72,115 67,015 -7% Number of clients 548,049 511,627 -7% Average number of FTEs 332 3
Slide 27: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 Change 1Q 2015 1Q 2016 YoY Factoring Factoring turnover (CZK million) 8,296 8,107 -2% KB Volume of total financing (gross, CZK million) 5,588 6,205 11% Average number of FTEs 39 44 12% KP Volume of technical reserves (CZK million) 43,956 45,107 3% Premium wri
Slide 28: Debt securities portfolio in the banking book
Debt securities portfolio in the banking book As of 31 March 2016 CZK billion Available-for-sale portfolio Held-to-maturity portfolio CZK 39.3 billion CZK 62.2 billion 53.8 19.8 8.1 0.8 8.5 10.6 Czech sovereign Foreign sovereign Czech sovereign Foreign sovereign Czech financial institutions Foreign
Slide 29: Foreign sovereign exposure
Foreign sovereign exposure As of 31 March 2016 CZK billion 8.5 8.1 EIB, 1.2 Poland, 5.3 Poland, 0.8 Romania, 1.9 Slovakia, 4.2 Slovakia, 3.2 0.9 EIB, 0.1 Slovakia, 0.9 Trading book 1) Available-for-sale 1) Held-to-maturity 2) Measurement at [1] fair value; [2] amortised cost 29
Slide 30: Macroeconomic environment – Czech Republic
Macroeconomic environment – Czech Republic Macroeconomic Indicators 2011 2012 2013 2014 2015 2016* Real GDP (%, average) 2.0 -0.8 -0.5 2.0 4.2 2.1 Inflation (%, average) 1.9 3.3 1.4 0.4 0.3 0.6 Household consumption (%, average) 0.3 -1.5 0.7 1.5 2.9 2.7 Unemployment (%, av., MLSA meth.) 6.6 6.8 7.8
Slide 31: Interest rates evolution
Interest rates evolution (for the period 1 January 2005 – 28 April 2016) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Pribor 3M Pribor 6M ČNB REPO Rate IRS 5Y IRS 10Y 31
Slide 32: Development of KB's share price and PX Index
Development of KB’s share price and PX Index (for the period 1 October 2001 – 28 April 2016) 500% 400% 300% 200% 100% 0% 2001 2003 2004 2005 2006 2008 2009 2010 2011 2013 2014 2015 KB PX index 32
Slide 33: KB shareholders
KB shareholders As of 31 March 2016 The number of shareholders comprised 44,597 corporate entities and private individuals. Of the Bank’s total share capital of CZK 19,004,926,000 divided into 38,009,852 shares with a nominal value of CZK 500 each, Société Générale S.A. holds 60.35%. Others 39.6% So
Slide 34: Investor Relations
Investor Relations Jakub Černý, Robert Janeček, Renata Swaczynová, Kamila Corbet Tel.: +420 955 532 156, 955 532 734, 955 532 155 E-mail: investor_relations@kb.cz - Internet: www.kb.cz 34