Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — H1 2001 Earnings Presentation
37 slides from Komercni Banka, A.s's earnings presentation, Jul 31, 2001
Slide 1: Komerční banka Financial Results for First Half 2001 (IAS)
KOMERČNÍ BANKA FINANCIAL RESULTS FOR FIRST HALF 2001 (IAS) July 31, 2001
Slide 2: Content
Content ! Main events page 3 - 5 ! Komerční banka - financial results page 6 - 24 ! Komerční banka Group - financial results page 25 - 27 ! Appendix page 28 - 37 FINANCIAL RESULTS FOR FIRST HALF 2001 2 K
Slide 3: Main Events: Successful privatisation - Société Générale
MAIN EVENTS Successful privatisation - Société Générale ! Privatisation completed " Due Diligence - 4 potential investors (January - May) " Government decided to sell 60% stake to Société Générale (June) " Share Purchase Agreement between Société Générale and Fund of National Property signed (July)
Slide 4: Business Activities: Considerable growth in direct banking activities
BUSINESS ACTIVITIES Considerable growth in direct banking activities Phone banking PC banking ! Telephone banking (Express line KB) Internet banking 1,315,600 and PC banking (BEST KB, M-BEST) increased number of clients and transactions ! Internet banking (mojebanka) 337.4% 153,100 470.7% launched (
Slide 5: Management Efforts: Focus on core activities, centralization & cost reduction
MANAGEMENT EFFORTS Focus on core activities, centralization & cost reduction ! Transformation of support services into a specialized subsidiary (July 1, 2001) - system solution of providing services within Financial Group, administrative costs reduction (447 employees moved into the daughter company
Slide 6: Komerční banka - Financial Results
KOMERČNÍ BANKA - FINANCIAL RESULTS
Slide 7: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Net profit reached CZK 2.7 billion CZK million 30.6.2000 30.6.2001 cha nge Ne t inte re s t income 6,041 6,122 1.3% Ne t fe e s a nd commis s ions 3,078 4,027 30.8% De a ling profits 1,101 *) 356 -67.7% Ne t income from s ubs idia rie s a nd a s s ocia te s 137 279 103.6% I
Slide 8: Net Interest Income
NET INTEREST INCOME Slight increase in net interest income CZK million 30.6.2000 30.6.2001 cha nge 1.3% Inte re s t inc o me 14,435 13,591 -5.8% 6,122 6,041 - s e curitie s 768 1,255 63.4% - fina ncia l ins titutions 5,587 6,082 8.9% - cus tome rs 8,080 6,254 -22.6% Inte re s t e xpe ns e s (8,394)
Slide 9: Non-Interest Income
NON-INTEREST INCOME Significant increase in net fees and commissions by 31% CZK million 30.6.2000 30.6.2001 cha nge Fe e s a nd commis s ion income 2,384 3,113 30.6% Fe e s a nd commis s ion e xpe ns e (723) (211) -70.8% Fe e s a nd commis s ions 1,661 2,902 74.7% FX cle a n a nd docume nta ry pa ym
Slide 10: Fees and Commission Income
FEES AND COMMISSION INCOME Fees and commisions income from clients Other fees and commisions income CZK million 30.6.2000 30.6.2001 cha nge Fe e s a nd commis s ions income 30.6% 3,113 from clie nts 2,300 *) 3,016 31.1% the re from: 2,384 pa yme nts 964 1,134 17.6% a ccount ma inte na nce 388 629 62
Slide 11: Total Costs
TOTAL COSTS Total costs increased by 3,3% Administrative expenses Depreciation and other CZK million 30.6.2000 30.6.2001 cha nge provisions Restructuring costs and reserves S a la rie s a nd s ocia l cos ts 2,433 2,863 17.7% 3.3% Othe r a dminis tra tive e xpe ns e s 2,222 2,430 9.4% 6,474 6,266 Adm
Slide 12: Provision for Loan Losses
PROVISION FOR LOAN LOSSES Positive impact of State Guarantee ! KB created CZK 1,275 mil. as a participation (including reserve for discounting *) on the expected (unrealised) loss of CZK 7,749 mil. on the guaranteed portfolio 8,129 ! KoB will cover 95 % of that amount, i.e. CZK 7,362 mil. of the gua
Slide 13: Ratios
RATIOS Ra tios 30.6.2000 30.6.2001 change BIS - Ca pita l Ade qua cy 14.33% 15.66% Ne t Inte re s t Ma rgin 3.53% 3.51% Cos t / Income ra tio *) 55.11% 55.17% Re turn on Equity (ROE) -5.55% 11.89% Re turn on As s e ts (ROA) -0.27% 0.68% *) excluding restructuring costs FINANCIAL RESULTS FOR FIRST HA
Slide 14: Assets
ASSETS Slight growth in customer loans CZK million 402,205 401,524 change Cash in hand, balances 20,607 17,137 -16.8% with central bank Due from financial institutions 175,299 182,863 4.3% Treasury bills and other bills 11,670 56 -99.5% eligable for refinancing Loans and advances to 126,943 130,194
Slide 15: Liabilities
LIABILITIES Stable volume of client deposits CZK million 402,205 401,524 change Amounts owed to 39,378 31,232 -20.7% financial institutions 288,681 0.4% Amounts owed to customers 287,624 Certificated debts 27,441 27,929 1.8% Subordinated debt 7,563 7,876 4.1% Other liabilities 19,988 22,963 14.9% Sh
Slide 16: Structure of KB's Loan Portfolio by Types
STRUCTURE OF KB´s LOAN PORTFOLIO BY TYPES Increase of mortgages and consumer loans Mortgages Consumer loans Business loans 3.9% CZK million 31.12.2000 30.6.2001 cha nge 147,675 153,492 Mortga ge s 10,234 12,455 21.7% Cons ume r loa ns 4,185 5,092 21.7% Bus ine s s loa ns 133,256 135,945 2.0% Loa ns
Slide 17: Structure of KB's Loan Portfolio by Classification
STRUCTURE OF KB´s LOAN PORTFOLIO BY CLASSIFICATION Significant growth in standard loans 31. 12. 2000 30.6.2001 a mount CZK million a mount provis ions a mount provis ions cha nge S ta nda rd 68,127 0 81,831 0 20.1% Wa tch 29,782 396 28,733 464 -3.5% To tal s tandard and watc h lo ans 97,909 396 110,
Slide 18: Guaranteed Portfolio
GUARANTEED PORTFOLIO Change in coverage levels CZK bil. December 31, 2000 June 30, 2001 60.9* 4.2 11.3 44.7* 4.7 35.7** 5.2 20.0 Applied to provisions 7.7 23.3** Still available 12.3 25.4 14.8 Nominal General Specific State Uncovered Value of Nominal General Specific State Uncovered Value of value r
Slide 19: Guaranteed Portfolio Development
GUARANTEED PORTFOLIO DEVELOPMENT Balance sheet ! Balance sheet decrease of CZK 10.6 billion consists of: Off-balance sheet Off-ba la nce fa cilitie s dra wn (2.1) 60.9 Re pa yme nt 7.4 Loa n liquida tion 0.9 Exclude d *) 4.4 44.7 To tal 10.6 47.2 ! Off-balance sheet decrease of CZK 5.6 billion consi
Slide 20: Structure of Collateral
STRUCTURE OF COLLATERAL KB continues to readjust collateral values to reflect historical experience into provisioning charges CZK million, disposable value of collateral 83,226 -16.5% Cash 988 Guarantees, bonds 9,991 69,526 1,211 11,442 Real estates 45,739 27,444 1,267 Securities 1,523 Other 24,985
Slide 21: Premier and Work Out Bank: Division of loan portfolio
PREMIER AND WORK OUT BANK Division of loan portfolio Total value of customer loans CZK 153,492 million PREMIER BANK WORK OUT BANK 31.12.2000 30.6.2001 cha nge 31.12.2000 30.6.2001 cha nge 106,800 120,273 12.6% 40,900 33,219 -18.8% Standard 68.0% Standard Watch CZK 120,273 mil. 0.3% 0.3% Sub-standard
Slide 22: Premier and Work Out Bank: Loans granted in first half 2001
PREMIER AND WORK OUT BANK Loans granted in the first half 2001 Total value of customer loans CZK 30,404 million PREMIER BANK WORK OUT BANK CZK 30,194 million CZK 210 million Standard 80.9% Watch 8.6% Standard 0.0% Loss 0.0% Doubtful Watch 1.4% Sub-standard 13.5% 90.0% Sub-standard Loss Doubtful 4.2%
Slide 23: Premier and Work Out Bank: Profit and loss statement 1/2
PREMIER AND WORK OUT BANK Profit and loss statement 1/2 ! The Premier Bank generates 90 % of KB´s net operating income ! Minimal participation of Work out Bank on the Bank´s net operating income ! An income from fully written-off loans amounts to CZK 499 mil. ! Work out Bank´s costs related to bad l
Slide 24: Premier and Work Out Bank: Profit and loss statement 2/2
PREMIER AND WORK OUT BANK Profit and loss statement 2/2 Based on internal management accounting system CZK million Pre mie r Ba nk Work out Ba nk KB Tota l Ne t inte re s t income 5,385 737 6,122 Ne t fe e s a nd commis s ions 3,832 251 4,083 Othe r income **) 991 (302) 689 Income from fully writte
Slide 25: Komerční banka Group - Financial Results
KOMERČNÍ BANKA GROUP - FINANCIAL RESULTS
Slide 26: Financial Group - Business Activities
FINANCIAL GROUP - BUSINESS ACTIVITIES Focus on higher utilization of synergies, cross-sell ! Redesign of product package ‚Harmonie‘ combining insurance (KP) and pension funds products (PF KB) ! Introduction of short-term investment program ‚Felix‘ with investment in mutual funds (IKS KB) ! Provision
Slide 27: Subsidiary and Associated Undertakings Results: Profit after tax
SUBSIDIARY AND ASSOCIATED UNDERTAKINGS RESULTS (CAS) Profit after tax CZK thous a nd 30.6.2000 30.6.2001 cha nge ALL IN REAL ES TATE LEAS ING, s . r. o. *) 1,536 1,031 -32.9% ALL IN, a . s . *) 4,690 (2) -100.0% A-TRADE, s . r. o. *) 3,415 (10,633) -411.4% Fa ctoring KB, a . s . 9,824 6,909 -29.7% I
Slide 28: Komerční banka - Appendix
KOMERCNI BANKA - APPENDIX MS |
Slide 29: Structure of KB's Loan Portfolio
STRUCTURE OF KB´s LOAN PORTFOLIO Structure by currency Structure by maturity On demand Loans up to 1% one year 33% Foreign Domes tic currency currency Loans four 16% 84% years or greater Loans 41% between one and four years 25% Structure by amount Structure by interest rate Loans up to With fixed CZ
Slide 30: Structure of Loans by Industry
STRUCTURE OF LOANS BY INDUSTRY Indus try *) amo unt s hare Trade and accommodation 24,769 16% Other manufacturing industries 10,984 7% Food 10,762 7% Finance and insurance 10,720 7% Manufacture of basic metals 9,072 6% Transport, tourism and communications 9,063 6% Machinery 7,775 5% Agriculture 7,2
Slide 31: Work Out Activities
WORK OUT ACTIVITIES 30.6.2000 30.6.2001 CZK million To tal To tal Re alis atio n o f c o llate ral a ppra is e d va lue 121 456 ne t income from re a lis a tion 48 202 ra tio of re a lis e d va lue 39.7% 44.3% without To tal KONPO *) without KONP O To tal KONPO S e lling o f de bts KONPO a mount of
Slide 32: Subsidiary and Associated Undertakings Results: Assets
SUBSIDIARY AND ASSOCIATED UNDERTAKINGS RESULTS (CAS) Assets CZK million 31.12.2000 30.6.2001 cha nge ALL IN REAL ES TATE LEAS ING, s . r. o. *) 97 100 3.1% ALL IN, a . s . *) 89 82 -7.9% A-TRADE, s . r. o. *) 212 60 -71.7% Fa ctoring KB, a . s . 1,928 2,136 10.8% Inve s tiční ka pitá lová s pole čno
Slide 33: Subsidiary and Associated Undertakings Results: Equity
SUBSIDIARY AND ASSOCIATED UNDERTAKINGS RESULTS (CAS) Equity CZK million 31.12.2000 30.6.2001 cha nge ALL IN REAL ES TATE LEAS ING, s . r. o. *) 28 29 3.6% ALL IN, a . s . *) 84 81 -3.6% A-TRADE, s . r. o. *) 33 22 -33.3% Fa ctoring KB, a . s . 99 106 7.1% Inve s tiční ka pitá lová s pole čnos t, a .
Slide 34: Development of Price of KB's Share and Index PX50
DEVELOPMENT OF PRICE OF KB´s SHARE AND INDEX PX50 CZK point 1,200 1,100 585 1,000 520 900 455 800 700 390 600 325 500 260 400 195 300 KB 130 200 P X 50 100 65 0 0 8.2.2001 9.3.2001 9.4.2001 10.1.2001 19.1.2001 30.1.2001 19.2.2001 28.2.2001 20.3.2001 29.3.2001 19.4.2001 30.4.2001 11.5.2001 22.5.2001
Slide 35: Development of 3M, 6M PRIBOR and the RS KB
% 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00 29.12.2000 10.1.2001 THE RS KB 19.1.2001 30.1.2001 8.2.2001 RS KB 19.2.2001 6M P RIBOR 3M P RIBOR 28.2.2001 9.3.2001 FINANCIAL RESULTS FOR FIRST HALF 2001 20.3.2001 29.3.2001 9.4.2001 19.4.2001 30.4.2001 11.5.2001 22.5.2001 31.5.2001 DEVELOPMENT OF 3M,
Slide 36: Structure of Shareholders
STRUCTURE OF SHAREHOLDERS June 13, 2001 Othe r share holde rs 23.40% Chase Nomine e s Limite d 1.31% State Stre e t Bank and Trust Company 1.34% Brown Brothe rs Harriman & Co., as Custodian 1.60% Chase Ire land [Nomine e s] Limite d 1.60% The Bank of Ne w York ADR De partme nt Fond národního maje tk
Slide 37: Contacts: Strategy and Investor Relations Division
CONTACTS Strategy and Investor Relations Division Dana Casimaty, MBA Director of Division tel: +420 2 224 32093 fax: +420 2 2422 9482 E-mail: dana_casimaty@kb.cz Ladislav Šilha Eva Čulíková Head of IR Department IR Officer tel: +420 2 224 32155 tel: +420 2 224 32156 E-mail: ladislav_silha@kb.cz E-ma