Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — Q1 2013 Earnings Presentation
35 slides from Komercni Banka, A.s's earnings presentation, May 7, 2013
Slide 1: Komerční banka Group Financial results as of 31 March 2013
Komerční banka Group Financial results as of 31 March 2013 According to International Financial Reporting Standards, consolidated, unaudited Prague, 7 May 2013
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 23 3
Slide 4: Czech economy
Czech economy Real GDP outlook (YoY, %) Czech economy in recession since beginning of 2.3 1.9 1.7 2012. Estimated 1Q 2013 contraction by 0.2% -0.3 QoQ*, upon neutral contribution from net exports -1.2 and household consumption, still declining fixed -4.3 investments and government spending Unemploym
Slide 5: Key results as of 31 March 2013
Key results as of 31 March 2013 Gross volume of loans to clients expanded by 4.8% to CZK 472.3 billion Client deposits rose by 6.0% to CZK 598.7 billion Sufficient liquidity buffer, net loans-to-deposits ratio at 80.2% (excluding client assets in transformed pension fund) Solid capital adequacy, Bas
Slide 6: Business highlights
Business highlights Sustained expansion of lending driven mainly by mortgages and lending to large corporation Dynamic inflow of deposits from business clients attesting to KB‘s strong client relationships Strong growth in the volume of assets of individual clients in mutual funds, life insurance an
Slide 7: Lending to clients
Lending to clients CZK billion 456.2 462.3 469.1 472.3 450.5 450.5 50.3 49.8 49.3 48.3 51.4 50.8 Gross loans rose 4.8% YoY. QoQ +0.7%. 130.5 133.3 134.4 123.0 125.3 128.2 Mortgages and loans to large corporations 27.0 27.6 27.4 27.4 27.4 27.5 most dynamic in the portfolio Business loans up 6.1% YoY,
Slide 8: Deposits and assets under management
Deposits and assets CZK billion By Customers 598.7 under management 560.7 564.8 582.4 568.3 579.1 71.8 70.9 70.9 70.8 70.9 71.8 162.6 156.4 157.7 Group deposits +6.0% YoY (+4.4% YoY 159.9 162.4 160.5 31.0 31.9 33.2 excluding repos with clients). QoQ +3.4% 30.4 31.2 31.7 Volumes on current accounts r
Slide 9: Agenda
Agenda Business results 4 Financial results 10 Loan Portfolio Quality and Cost of Risk 19 Appendix 23 9
Slide 10: Consolidated financial results
Consolidated financial results Profit and Loss Statement 1Q 2012 1Q 2012 1Q 2013 Change Change Reported = YoY YoY Reported Recurring (CZK million, unaudited) Recurring Reported Recurring Net interest income 5,548 5,548 5,259 -5.2% -5.2% Net fees & commissions 1,797 1,819 1,725 -4.0% -5.2% Income fro
Slide 11: Consolidated statement of financial position
Consolidated statement of financial position 31 Mar 31 Dec 31 Mar Change Change Balance Sheet 2012 2012 2013 YoY YtD (CZK million, unaudited) Assets 753,552 786,836 811,032 7.6% 3.1% Cash and balances with central bank 12,084 28,057 51,452 325.8% 83.4% Amounts due from banks 101,944 64,111 67,130 -3
Slide 12: Financial ratios
Financial ratios 31 Mar 31 Dec 31 Mar Change Key ratios and indicators 2012 2012 2013 YoY (year-to-date) Capital adequacy (Basel II) 13.6% 14.7% 14.9% Tier 1 ratio (Basel II) 13.6% 14.7% 14.9% Total capital requirement (CZK billion) 29.2 29.3 28.9 -1.2% Capital requirement for credit risk (CZK billi
Slide 13: Shareholders' equity
Shareholders‘ equity Development year-to-date Total shareholders‘ equity +2,073 Total shareholders‘ equity as of 31 December 2012 as of 31 March 2013 Shareholders' equity 31/12/2012 1/1/2013 Increase Decrease 31/3/2013 Share capital 19,005 19,005 19,005 Capital and reserve funds 42,181 56,135 22 56,
Slide 14: Net interest income
Net interest income 5,683 5,548 5,508 5,461 5,452 5,259 528 608 589 542 529 502 NII in 1Q 2013 down by 5.2% YoY. 1Q down by 3.5% QoQ 2,307 2,283 2,308 2,347 2,422 2,349 NII from loans – up thanks to growth of volumes. Spreads on lending to businesses under competitive pressure. Rising share of relat
Slide 15: Net fees and commissions
Net fees and commissions 1,797 1,761 1,742 1,725 1,700 1,671 NFC in 1Q 2013 down by 4.0% YoY. 1Q down 204 142 144 185 177 135 135 323 222 1.0% QoQ 354 255 337 332 356 Deposit product fees – Impacted by 2012 client 331 340 341 331 205 142 164 acquisition costs in pension fund and from 2013 130 147 14
Slide 16: Net profit from financial operations
Net profit from financial operations 1,228 Net profit from financial operations in 1Q 2013 1,018 957 465 down by 41.4% YoY. 1Q down 17.9% QoQ 457 727 400 624 597 YoY and QoQ comparison affected by 332 220 exceptional gains from adjustment of pension 313 309 297 395 340 fund portfolio and by credit v
Slide 17: Operating costs
Operating costs 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 OPEX in 1Q 2013 down by 2.7% YoY. 1Q down -1,586 -1,675 -1,671 -1,719 -1,721 -1,634 by 14.5% QoQ Personnel costs in 1Q 2013 decreased by 2.4% -1,044 -1,127 -1,190 -1,179 -1,571 -1,498 YoY, driven by lower number of employees by -401 -43
Slide 18: Agenda
Agenda Business results 4 Financial results 10 Loan Portfolio Quality and Cost of Risk 19 Appendix 23 18
Slide 19: Loan quality
Loan quality Gross lending CZK billion 462.3 469.1 472.3 450.5 450.5 456.2 Loan exposure +4.8% YoY, +0.7% QoQ Share of Standard and Watch loan exposure stable at 94.2% (94.2% in 4Q 2012) 410.2 411.9 417.2 424.8 431.0 434.5 Share of LUSR exposure stable at 5.8% (5.8% in 14.6 12.8 12.8 11.3 11.1 4Q 20
Slide 20: Cost of risk
Cost of risk Total Cost of Risk development 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 Stable 1Q 2013 cost of risk at CZK 0.5 billion 175 compared to 4Q 2012 62 56 44 40 46 40 100 56 41 40 0 48 31 32 3 25 1 13 -100 3 YoY commercial cost of risk decreased by 25% -641 -484 -200 -355 -391 -527 -30
Slide 21: Commercial cost of risk - zoom on client segments
Commercial cost of risk - zoom on client segments KB Group – Corporate Segments 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 YoY corporate cost of risk down to 29 bps from 150 35 bps in 1Q 2012 mainly thanks to the lower 29 35 29 9 8 19 50 inflow into default 87 -25 -50 -203 -187 -165 -150 1Q 201
Slide 22: Agenda
Agenda Business results 4 Financial results 10 Loan Portfolio Quality and Cost of Risk 19 Appendix 23 22
Slide 23: Number of clients and distribution network
Number of clients and distribution network Number of bank clients (ths., CZ) KB Group‘s 2.5 million clients, of which KB bank 1,592,000 clients (-0%) MPSS 597,000 clients (-7%) KBPS 566,000 clients (+10%) 1,629 1,620 1,602 1,602 1,590 1,592 ESSOX 260,000 active clients (-8%) Network 398 branches for
Slide 24: Consolidated financial results
Consolidated financial results Change Change Profit and Loss Statement 1Q 2012 4Q 2012 1Q 2013 YoY QoQ (CZK million, unaudited) Net interest income 5,548 5,452 5,259 -5.2% -3.5% Net fees & commissions 1,797 1,742 1,725 -4.0% -1.0% Income from financial operations 1,018 727 597 -41.4% -17.9% Other in
Slide 25: KB consolidated group
KB consolidated group KB Penzijní Pension Asset management company for Transformed Fund (pension fund with 566,000 clients) společnost insurance and for new pension funds in 2nd and 3rd pillars of the Czech pension system (100%) Modrá pyramida Building #2 largest building savings bank according to l
Slide 26: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 1Q 2012 1Q 2013 Change YoY MPSS Volume of new loans (CZK million) 1,039 791 -24% Volume of total loans (gross, CZK million) 50,763 48,285 -5% Target volume of new contracts (CZK million) 6,602 6,653 1% Volume of deposits (CZK million) 70,917 71,775 1% Average
Slide 27: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 1Q 2012 1Q 2013 Change YoY Factoring Factoring turnover (CZK million) 4,052 5,403 33% KB Volume of total financing (gross, CZK million) 2,630 3,287 25% Average number of FTEs 40 41 2% KP Newly concluded policies (number) 222,426 162,771 -27% of which in life
Slide 28: 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 100% 2,942 -0.8% 89,331 17.2% 715,394 8.3% - o/w KB branch in Slovakia IFRS 100% 33 -25.0% n.a. n.a. 19,387 26.8% ESSOX, s.r.o. IFRS 50.93% 120
Slide 29: Securities portfolio in the banking book
Securities portfolio in the banking book CZK billion Available-for-sale portfolio Held-to-maturity portfolio CZK 140.1 billion CZK 3.3 billion 99.2 3.1 0.2 1.6 20.0 1.0 18.2 Czech sovereign Foreign sovereign Czech sovereign Foreign sovereign Czech financial institutions Foreign financial institution
Slide 30: Foreign sovereign exposure
Foreign sovereign exposure CZK billion 20.0 EFSF, 0.5 EIB, 2.2 Italy, 4.9 Poland, 5.7 Slovakia, 6.6 1.0 Poland, 0.1 0.2 Slovakia, 0.9 France, 0.2 1) 1) 2) Trading book Available-for-sale Held-to-maturity Measurement at [1] fair value; [2] amortized cost 30
Slide 31: Macroeconomic environment – Czech Republic
Macroeconomic environment – Czech Republic Macroeconomic Indicators 2009 2010 2011 2012 2013* 2014* Real GDP (%, average) -4.3 2.3 1.9 -1.2 -0.3 1.7 Inflation (%, average) 1.0 1.5 1.9 3.3 1.5 1.4 Household consumption (%, average) 0.3 0.9 0.7 -3.5 -0.1 1.7 Unemployment (%, av., MLSA meth.) 6.4 7.0 6
Slide 32: Interest rates evolution
Interest rates evolution (for the period 1 January 2005 – 30 April 2013) 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 01/01/2005 01/01/2006 01/01/2007 01/01/2008 01/01/2009 01/01/2010 01/01/2011 01/01/2012 01/01/2013 Pribor 3M Pribor 6M ČNB REPO Rate IRS 5Y IRS 10Y 32
Slide 33: Development of KB's share price and PX Index
Development of KB‘s share price and PX Index (for the period 1 October 2001 – 30 April 2013) 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 01/10/01 01/10/02 01/10/03 01/10/04 01/10/05 01/10/06 01/10/07 01/10/08 01/10/09 01/10/10 01/10/11 01/1
Slide 34: KB shareholders
KB shareholders As of 31 March 2013 Shares on registered capital according to excerpt from the Securities centre Others 39.6% Société Générale 60.4% As of 31 March 2013, KB held 238,672 own shares in treasury, representing 0.63% stake on registered capital. 34
Slide 35: 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 35