Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — Q1 2025 Earnings Presentation
35 slides from Komercni Banka, A.s's earnings presentation, Apr 30, 2025
Slide 1: Komerční banka Group consolidated unaudited results as of 31 March 2025
Prague, 30 April 2025 Komerční banka Group Consolidated unaudited results as of 31 March 2025
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 March 2025 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 March 2025 3
Slide 4: 1Q 2025: Improved profitability, strong capital, further expansion of client base
Highlights of Q1 2025 1Q 2025: Improved profitability, strong capital, further expansion of client base Income statement Balance sheet & Capital Business performance Group net income Total capital ratio KB Bank’s clients CZK 4.2 billion 18.7% + 60,000 YoY to 1,738,000 +49.3% YoY Continuing successfu
Slide 5: Agenda
Agenda Highlights as of 31 March 2025 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 March 2025 5
Slide 6: Economic growth in 2025 to be based on domestic consumption
Czech Republic - macro Economic growth in 2025 to be based on domestic consumption Czech GDP development (% year-on-year) 8 4.1 KB Economic 6 Research Forecast GDP in 4Q 20241) up by 0.7% QoQ and up by 1.8% YoY. YoY growth supported by 0.1 4 2.9 1.5 1.0 1.2 household and government final consumption
Slide 7: Agenda
Agenda Highlights as of 31 March 2025 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 March 2025 7
Slide 8: Gross loans to clients up 2.9%
Loans to clients Gross loans to clients up 2.9% Group lending (excl. repo, incl. client bonds) (CZK billion) +2.9% +0.1% Net loans to deposits ratio at 81.9% 827.7 825.5 824.1 838.2 848.3 849.3 Liquidity coverage ratio 173%. Net stable funding ratio 132% 92.5 93.7 95.1 96.4 97.6 98.1 4.7% 276.4 278.
Slide 9: Selected corporate deals 1Q 2025
Tombstones Selected corporate deals 1Q 2025 KB Group results as of 31 March 2025 9
Slide 10: Client deposits -1.0%, current accounts up; Other AUM up +8.1%
Deposits and other AUM Client deposits -1.0%, current accounts up Group deposits (excluding repo operations) Other AUM up +8.1%, driven by mutual funds (CZK billion) -1.0% +0.9% Non-deposit assets under management 1,049.8 1,059.4 1,057.6 1,029.5 1,038.9 1,006.2 (CZK billion) 51.3 50.8 50.4 50.4 48.6
Slide 11: Agenda
Agenda Highlights as of 31 March 2025 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 March 2025 11
Slide 12: Strong year-on-year growth in net profit
Profit & Loss Strong year-on-year growth in net profit Development of quarterly net profit… (CZK million) +49.3% Drivers for year-on-year change in attributable net profit -11.0% 6,195 (as of 31 March 2025) 4,705 4,186 3,259 3,540 3,713 +49.3% 2,804 981 102 4,186 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2
Slide 13: Balance sheet down by 1.8% year-on-year
Statement of financial position Balance sheet down by 1.8% year-on-year Assets Liabilities and Equity (CZK billion) Year-on-year (CZK billion) Year-on-year -1.8% -1.8% 1,614 1,586 1,614 1,586 1,536 101 1,536 92 112 10.9% 517 409 461 -10.7% 1,229 1,205 -1.9% 1,175 839 853 851 1.5% -1.6% 13 66 13 66 1
Slide 14: Stable loan spreads, doubling of non-interest-bearing mandatory reserves
Net interest income Stable loan spreads, doubling of non-interest- Year-to-date +2.0% bearing mandatory reserves (CZK million) 6,276 6,404 493 -14% 423 Net interest margin (%) Other 1.74% 1.75% 1.94% 1.69% 1.69% 1.64% 1.71% 1.64% 1.64% 1.72% NII from deposits 2,707 6% 2,868 1.71% 1.71% NII from loan
Slide 15: Positive fee income trend driven by wealth management, solid client DCM activity
Net fees and commissions Positive fee income trend driven by wealth Year-to-date +11.2% management, solid client DCM activity (CZK million) 1,768 1,589 406 Transaction fees Transaction fees -8% 440 Deposit product fees 177 Seasonally less active and shorter Q1, inclusion of transactions in -8% 97 Lo
Slide 16: Solid client hedging activity, better income from conversions
Net profit from financial operations Solid client hedging activity, Year-to-date +11.9% better income from conversions (CZK million) 937 838 Capital markets 15% 408 Net gains on FX from payments 354 Sales activity Other 9% Volatile interest rate outlook boosted client demand for IR hedging, in parti
Slide 17: Lower operating expenditures
Operating expenditures Lower operating expenditures Year-to-date -4.4% (CZK million) Personnel expenses – number of employees lower by -4.3% YoY to 7,236 in 1Q 2025 Personnel costs -2,131 4% -2,226 (average FTE), annual salary increase by average 2.5% to be effective from Q2, GAE (excl. Res. and sim
Slide 18: Agenda
Agenda Highlights as of 31 March 2025 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 March 2025 18
Slide 19: 1Q 2025 Asset quality
Loan portfolio quality 1Q 2025 Asset quality Group lending (CZK billion) 827.7 825.5 824.1 838.2 848.3 849.3 Loan portfolio up by 2.9% YoY and QoQ stable 690.4 684.4 685.1 699.6 708.5 714.4 Stable credit risk profile • Stage 2 share at 13.9% (vs. 14.5% in 4Q 2024) 122.0 15.3 124.0 17.2 122.8 16.2 12
Slide 20: 1Q 2025 Cost of risk development
Cost of risk 1Q 2025 Cost of risk development Total Cost of risk development (CZK million) 496 2 6 607 0 1Q 2025 CoR net release at CZK 496 million -1 0 1 112 106 -111 -315 -214 -168 -152 -680 -100 -202 -40 -169 -485 -369 CZK 607 million in net release on non-retail exposures: -370 -1,051 • driven b
Slide 21: Agenda
Agenda Highlights as of 31 March 2025 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 March 2025 21
Slide 22: Capital ratios still well above regulatory requirements after Basel IV implementation
Capital Capital ratios still well above regulatory Contributions to shareholders’ equity in 1Q 2025 (CZK million) requirements after Basel IV implementation -375 -1,749 132,100 4,186 Total capital adequacy at 18.7% over the Overall Capital Requirement of 16.6% 130,037 CET 1 ratio at 17.7% over the r
Slide 23: Agenda
Agenda Highlights as of 31 March 2025 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 March 2025 23
Slide 24: Assumptions and outlook for 2025
Outlook for 2025 Assumptions and outlook for 2025 The text below updates and replaces outlook for 2025 first presented alongside release of KB’s full year 2024 results on 6 February 2025. Investors are advised to consider high level of uncertainty and risks when formulating their investment decision
Slide 25: Agenda
Agenda Highlights as of 31 March 2025 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 March 2025 25
Slide 26: 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-Mar-24 31-Mar-25 YoY 1,641 1,625 1,652 1,664 1,727 1,738 Number of clients KB Group’s clients 2,195,000 2,177,000 -18,000 Komerční banka 1,678,000 1,738,000 60,000 – Individ
Slide 27: Consolidated income statement
Consolidated income statement Income statement (CZK million, unaudited) 1Q 2024 4Q 2024 1Q 2025 YoY QoQ Net interest income 6,276 6,588 6,404 2.0% -2.8% Net fee & commission income 1,589 2,366 1,768 11.3% -25.3% Net profit of financial operations 838 1,048 937 11.8% -10.6% Dividend and other income
Slide 28: Consolidated statement of financial position
Consolidated statement of financial position Balance sheet (CZK million, unaudited) 31-Mar-24 31-Dec-24 31-Mar-25 YoY rel. YoY abs. Ytd rel. Ytd abs. Assets 1,614,499 1,536,000 1,585,663 -1.8% -28,836 3.2% 49,663 Cash and current balances with central bank 23,044 72,956 83,380 >100% 60,336 14.3% 10,
Slide 29: Capital & profitability indicators
Financial ratios Capital & profitability indicators Adjusted for IFRIC 21 Reported linearisation* (year-to-date, IFRS 9) 31-Mar-24 31-Dec-24 31-Mar-25 31-Mar-24 31-Mar-25 Capital adequacy 18.8% 18.8% 18.7% Tier 1 ratio = Core Tier 1 ratio 17.7% 17.6% 17.7% Risk weighted assets for credit risk (CZK b
Slide 30: Business performance of subsidiaries (1/2)
Overview of KB subsidiaries Business performance of subsidiaries (1/2) 1Q 2024 1Q 2025 YoY Modrá pyramida (100%) building savings & loans company Volume of new loans (CZK million) 2,180 3,535 62% Volume of total loans (gross, CZK million) 93,713 98,133 5% Volume of deposits (CZK million) 51,348 48,5
Slide 31: Business performance of subsidiaries (2/2)
Overview of KB subsidiaries Business performance of subsidiaries (2/2) 1Q 2024 1Q 2025 YoY Factoring KB (100%) factoring company Factoring turnover (CZK million) 15,906 18,485 16% Volume of total financing (gross, CZK million) 8,765 11,206 28% Average number of FTEs* 0.25 0.26 ** 4% KB Pojišťovna (4
Slide 32: Capital requirements, MREL, Tier 2
MREL, TIER 2 Capital requirements, MREL*, Tier 2 Own funds and eligible liabilities (for MREL) 29.4% Total requirement = MREL + CBR MREL requirement 21.2% RWA, 5.91% Total Risk Exposure (27.5% as of 31 March 2025) 10.7% Total requirement = MREL + CBR = 21.2% + 6.25% = 27.45% (as of 1 January 2025) M
Slide 33: 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 1.1 For the period 1 Jan 2015 – 22 April 2025 Household consumption (%, average) 0
Slide 34: KB - #1 listed Czech bank
KB shares and shareholder structure KB - #1 listed Czech bank Shareholder structure Appreciation of KB shares since October 2001 (acquisition of majority stake by SG) in % (excluding dividends) (1 October 2001 – 22 April 2025) 600 500 Free-float 39.6% 400 300 200 60.4% Société Genérále 100 0 2005 20
Slide 35: 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 Internet: www.kb.cz/investors Twitter: @KB_investors Reuters: BKOM.PR Bloomberg: KOMB CP