Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — Q4 2024 Earnings Presentation
37 slides from Komercni Banka, A.s's earnings presentation, Feb 26, 2025
Slide 1: Komerční banka Group consolidated unaudited results as of 31 December 2024
Prague, 6 February 2025 Komerční banka Group Consolidated unaudited results as of 31 December 2024
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 Highlights as of 31 December 2024 Macroeconomic environment Business performance Financial performance Asset quality and cost of risk Capital and dividends Outlook for 2025 Appendix KB Group results as of 31 December 2024 3
Slide 4: FY 2024: Pivotal year for transformation, strong profitability, record growth of client base
Highlights FY & Q4 2024 FY 2024: Pivotal year for transformation, strong profitability, record growth of client base Income statement Balance sheet & Capital Business performance Group net income (CZK) Deposits Client loans Core Tier 1 Total capital ratio 17.2 billion Reported FY 24 +10.4% YoY 17.64
Slide 5: Agenda
Agenda Highlights as of 31 December 2024 Macroeconomic environment Business performance Financial performance Asset quality and cost of risk Capital and dividends Outlook for 2025 Appendix KB Group results as of 31 December 2024 5
Slide 6: Economy to accelerate slightly driven by domestic demand
Czech Republic - macro Economy to accelerate slightly driven by domestic demand Czech GDP development (% year-on-year) 8 4.1 KB Economic 6 Research Forecast GDP in 4Q 20241) up by 0.5% QoQ and up by 1.6% YoY according to flash estimate. 2.9 0.1 4 1.5 2.2 YoY growth supported by household consumption
Slide 7: Agenda
Agenda Highlights as of 31 December 2024 Macroeconomic environment Business performance Financial performance Asset quality and cost of risk Capital and dividends Outlook for 2025 Appendix KB Group results as of 31 December 2024 7
Slide 8: Gross loans to clients up 2.5%
Loans to clients Gross loans to clients up 2.5% Group lending (excl. repo, incl. client bonds) (CZK billion) +2.5% +1.2% Net loans to deposits ratio at 82.9%. Liquidity coverage ratio 166%. Net stable funding 808.3 827.7 825.5 824.1 838.2 848.3 ratio 131% 90.6 92.5 93.7 95.1 96.4 97.6 5.6% 273.5 276
Slide 9: Selected corporate deals 4Q 2024
Tombstones Selected corporate deals 4Q 2024 KB Group results as of 31 December 2024 9
Slide 10: Client deposits +2.3%, other AUM up +11.0%
Deposits and other AUM Client deposits +2.3%, current accounts up Group deposits (excluding repo operations) Other AUM up +11.0%, driven by mutual funds (CZK billion) +2.3% -2.7% Non-deposit assets under management 1,022.4 1,049.8 1,059.4 1,057.6 1,029.5 1,006.2 (CZK billion) 52.8 51.3 50.8 50.4 50.
Slide 11: Agenda
Agenda Highlights as of 31 December 2024 Macroeconomic environment Business performance Financial performance Asset quality and cost of risk Capital and dividends Outlook for 2025 Appendix KB Group results as of 31 December 2024 11
Slide 12: Increasing net profit trend
Profit & Loss Increasing net profit trend Development of quarterly net profit… (CZK million) +44.4% Drivers for year-on-year change in attributable net profit -24.1% (as of 31 December 2024) 6,195 +10.4% 4,267 4,705 3,259 3,540 3,713 -5.4% 2,804 2,481 17,243 486 877 28 3Q 2023 4Q 2023 1Q 2024 2Q 202
Slide 13: Balance sheet up by 1.3% year-on-year
Statement of financial position Balance sheet up by 1.3% year-on-year Assets Liabilities and Equity (CZK billion) Year-on-year (CZK billion) Year-on-year +1.3% +1.3% 1,516 1,536 1,516 1,536 106 92 -13.4% 424 409 -3.7% 1,127 1,175 4.2% 834 853 2.3% 1.6% 12 65 13 66 1.8% 217 236 8.5% 78 62 -21.2% 41 3
Slide 14: Net interest income
Net interest income Decreasing deposit costs, resilient loan spreads, Year-to-date -1.2% effect of cost of MREL and mandatory reserves (CZK million) 25,595 25,278 2,028 -15% 1,714 Net interest margin (%) Other 1.86% 1.96% 1.75% 1.94% 1.69% 1.69% 1.64% 1.71% 1.64% 1.64% 1.72% 1.74% NII from deposits
Slide 15: Net fees and commissions
Net fees and commissions Strong fee income growth boosted by Year-to-date +13.7% wealth management, DCM services (CZK million) 7,291 6,414 Transaction fees 1,843 Transaction fees 2% 1,816 Deposit product fees 720 Growing trend for other all non-cash (out-of-branch) transaction categories -10% 444 Lo
Slide 16: Net profit from financial operations
Net profit from financial operations Excellent result from previous year repeated Year-to-date 0.0% on improved activity in hedging, conversions (CZK million) 3,832 3,832 Capital markets -6% 1,694 1,596 Net gains on FX from payments Capital markets Other 21% Client hedging demand and trading desks r
Slide 17: Operating expenditures well under control
Operating expenditures Operating expenditures well under control Year-to-date +2.3% (CZK million) Personnel expenses – annual salary review effective from Q2, staff number lower by Personnel costs -8,335 5% -8,731 -1.3% YoY to 7,456 in FY 2024 (average FTE), insourcing of IT and data experts, declin
Slide 18: Agenda
Agenda Highlights as of 31 December 2024 Macroeconomic environment Business performance Financial performance Asset quality and cost of risk Capital and dividends Outlook for 2025 Appendix KB Group results as of 31 December 2024 18
Slide 19: 4Q 2024 Asset quality
Loan portfolio quality 4Q 2024 Asset quality Group lending (CZK billion) 808.3 827.7 825.5 824.1 838.2 848.3 Loan portfolio up by 2.5% YoY and by 1.2% QoQ Stable credit risk profile 690.4 684.4 685.1 699.6 708.5 685.9 • Stage 2 share at 14.5% (vs. 14.5% in 3Q 2024) 105.9 16.5 122.0 15.3 124.0 17.2 1
Slide 20: 4Q and FY 2024 Cost of risk development
Cost of risk 4Q and FY 2024 Cost of risk development Total Cost of risk development (CZK million) 138 2 6 4Q 2024 CoR net creation at CZK 40 million 202 79 -1 0 112 1 106 -144 -315 -214 -168 -152 • CZK 152 million net creation on non-retail exposures concentrated on -680 -100 -202 -40 -169 -369 one
Slide 21: Agenda
Agenda Highlights as of 31 December 2024 Macroeconomic environment Business performance Financial performance Asset quality and cost of risk Capital and dividends Outlook for 2025 Appendix KB Group results as of 31 December 2024 21
Slide 22: Stable regulatory capital ratio safely above regulatory requirement
Capital Stable regulatory capital ratio safely above regulatory requirement Contributions to shareholders’ equity in FY 2024 (CZK million) 17,243 -15,612 Total capital adequacy at 18.8% over the applicable Overall Capital Requirement of 128,284 153 130,037 16.7% (including decrease in SREP by 20 bps
Slide 23: Dividend reflecting improved capital generation, slower capital consumption
Dividends Dividend reflecting improved capital generation, slower capital consumption Dividend history (Dividend per share, CZK) CZK % Pandemic 100 100 dividend • KB’s Board of Directors proposes to the Annual General Meeting payment of restrictions 80 80 dividends in the volume of CZK 17.2 billion
Slide 24: Agenda
Agenda Highlights as of 31 December 2024 Macroeconomic environment Business performance Financial performance Asset quality and cost of risk Capital and dividends Outlook for 2025 Appendix KB Group results as of 31 December 2024 24
Slide 25: Assumptions and outlook for 2025
Outlook for 2025 Assumptions and outlook for 2025 Investors are advised to consider high level of uncertainty and risks when formulating their investment decisions based on expectations provided below. Macro- • Czech economy expected to accelerate marginally in 2025. The growth of GDP should be driv
Slide 26: Agenda
Agenda Highlights as of 31 December 2024 Macroeconomic environment Business performance Financial performance Asset quality and cost of risk Capital and dividends Outlook for 2025 Appendix KB Group results as of 31 December 2024 26
Slide 27: Number of clients and distribution network
KB Group clients and distribution network Number of clients and distribution network Number of bank clients (thousands, CZ) 31-Dec-23 31-Dec-24 YoY Number of clients 1,664 1,641 1,652 1,664 1,727 1,625 KB Group’s clients 2,199,000 2,184,000 -15,000 Komerční banka 1,664,000 1,727,000 63,000 – Individ
Slide 28: Income statement – reported
Consolidated income statement Income statement – reported Year-to-date Quarter-to-date (CZK million, unaudited) FY 2023 FY 2024 YoY 4Q 2023 3Q 2024 4Q 2024 YoY QoQ Net interest income 25,595 25,278 -1.2% 6,276 6,256 6,588 5.0% 5.3% Net fee & commission income 6,414 7,291 13.7% 1,817 1,666 2,366 30.2
Slide 29: Income statement – recurring
Consolidated income statement Income statement – recurring* Year-to-date Quarter-to-date (CZK million, unaudited) FY 2023 FY 2024 YoY 4Q 2023 3Q 2024 4Q 2024 YoY QoQ Net interest income 25,595 25,278 -1.2% 6,276 6,256 6,588 5.0% 5.3% Net fee & commission income 6,414 7,291 13.7% 1,817 1,666 2,366 30
Slide 30: Balance sheet
Consolidated statement of financial position Balance sheet (CZK million, unaudited) 31-Dec-23 31-Dec-24 YoY rel. YoY abs. Assets 1,516,302 1,536,000 1.3% 19,698 Cash and current balances with central bank 12,835 72,956 >100% 60,121 Loans and advances to banks 411,644 335,834 -18.4% -75,810 Loans and
Slide 31: Capital & profitability indicators
Financial ratios Capital & profitability indicators Reported Recurring* (year-to-date, IFRS 9) 31-Dec-23 31-Dec-24 31-Dec-23 31-Dec-24 Capital adequacy 18.8% 18.8% Tier 1 ratio = Core Tier 1 ratio 17.7% 17.6% Risk weighted assets for credit risk (CZK billion) 452.3 462.2 Net interest margin, annuali
Slide 32: Business performance of subsidiaries (1/2)
Overview of KB subsidiaries Business performance of subsidiaries (1/2) FY 2023 FY 2024 YoY Modrá pyramida (100%) building savings & loans company Volume of new loans (CZK million) 10,372 13,115 26% Volume of total loans (gross, CZK million) 92,471 97,627 6% Volume of deposits (CZK million) 52,337 50
Slide 33: Business performance of subsidiaries (2/2)
Overview of KB subsidiaries Business performance of subsidiaries (2/2) FY 2023 FY 2024 YoY Factoring KB (100%) factoring company Factoring turnover (CZK million) 72,461 78,170 8% Volume of total financing (gross, CZK million) 10,018 12,700 27% Average number of FTEs 11 0.25* -98% KB Pojišťovna (49%)
Slide 34: Capital requirements, MREL, Tier 2
MREL, TIER 2 Capital requirements, MREL*, Tier 2 Own funds and eligible liabilities (for MREL) 29.5% Total requirement = MREL + CBR MREL requirement 21.2% RWA, 5.91% Total Risk Exposure (27.5% as of 1 January 2025) 10.7% Total requirement = MREL + CBR = 21.2% + 6.25% = 27.45% (as of 1 January 2025)
Slide 35: Czech macroeconomic environment and interest rates
Czech macroeoconomic environment and interest rates Czech macroeconomic environment and interest rates Macroeconomic Indicators 2022 2023 2024 2025* 2026* Interest rates evolution Real GDP (%, average) 2.9 0.1 1.0* 1.5 2.2 For the period 1 Jan 2015 – 31 January 2025 Household consumption (%, average
Slide 36: KB - #1 listed Czech bank
KB shares and shareholder structure KB - #1 listed Czech bank Shareholder structure Development of KB share price and PX index (1 January 2001 – 31 January 2025) 600 500 Free-float 400 39.6% 300 200 60.4% Société Genérále 100 0 2005 2010 2015 2020 2025 KB PX • The number of shareholders comprised 76
Slide 37: Investor relations
Investor relations Komerční banka, a.s. Na Příkopě 33, 114 07 Prague 1 Email: investor_relations@kb.cz Tel.: +420 955 532 156, +420 955 532 734 Internet: www.kb.cz/investors Twitter: @KB_investors Reuters: BKOM.PR Bloomberg: KOMB CP