Komercni Banka, a.s. · PSECZ:KOMB
Komercni Banka, a.s — FY2001 Earnings Presentation
28 slides from Komercni Banka, a.s's earnings presentation, Mar 29, 2002
Slide 1: 2001 Audited Financial Results and Strategic Perspectives
.RPHU³QmEDQNDDV. 2001 Audited Financial Results and Strategic Perspectives Prague, 29 March 2002 0
Slide 2: Content
CONTENT • 2001 Performance – Business Indicators – Financial Performance 2001 Unconsolidated – Financial Performance 2001 Consolidated • Strategic perspectives – Our strategy – New organization – SG support – Transformation Program – Projection of KB performance • Appendix 1
Slide 3: Key Business Indicators: Sustaining solid client base
KEY BUSINESS INDICATORS Sustaining solid client base Clients Individuals Payment cards - transactions • Increase in Corporate Thousand (0.1%) Thousand usage of 1,246.2 1,244.6 • Globally stable payment cards 34.3% 38,164 client base - 185 by 34% thousand new 28,407 clients compared • Increase in 941
Slide 4: Key Business Indicators: Steady growth in loans and deposits
KEY BUSINESS INDICATORS Steady growth in loans and deposits Mortgage loans Number of loans Consumer loans Number of deposit accounts Non-term deposits Term and savings Thousand Business loans Thousand deposits (1.2%) 1,473.0 1,455.8 (2.1%) 13.7% 981.5 106.0 36.5% 1,002.8 93.2 11.6 • After a dynamic
Slide 5: Key Business Indicators: Dynamic trends in Direct Banking
KEY BUSINESS INDICATORS Dynamic trends in Direct Banking Phone Banking (ExpressLine) - Number of clients Phone Banking (ExpressLine) - Number of Thousand transactions 3,072 196 Thousand 101% 219% 98 963 31.12.2000 31.12.2001 31.12.2000 31.12.2001 Internet Banking (mojebanka) Thousand 2,082 • Total n
Slide 6: Key Business Indicators: KB strong position in several key segments
KEY BUSINESS INDICATORS KB strong position in several key segments Corporates - KB Market share (December 2001) Deposits Loans Total 28% 13% • Strong position in medium and large enterprises Small 13% 13% Medium 37% 14% • Potential for future development in small enterprises Large 49% 13% Consumer b
Slide 7: Unconsolidated Financial Results and Ratios
UNCONSOLIDATED FINANCIAL RESULTS AND RATIOS CZK million; IAS Profit and Loss Statement 31.12.2000 31.12.2001 Change Total revenues 21,805 23,809 9.2% Operating costs (13,783) (15,065) 9.3% Profit before provisions for loan and investment losses 8,022 8,744 9.0% Provisions for loan and investment los
Slide 8: Total Revenues
TOTAL REVENUES Significant growth in Net Fees and Commissions CZK million Net Interest Income Customers* Net Fees and Commissions FX Cash conversions FX clean and documentary Financial institutions 12,287 5.7% 12,989 payments Securities Non-FX Fees and 3,996 Commissions 4,442 16.9% (10.0%) 8,394 • T
Slide 9: Operating Costs
OPERATING COSTS Operating costs impacted by personnel costs increase and restructuring costs CZK million Other administrative expenses Personnel costs Depreciation and other provisions Restructuring costs 9.3% • Personnel costs increased by 12% due to: 15,065 - Implementation of variable compensatio
Slide 10: Balance Sheet
BALANCE SHEET 5% increase of the balance sheet CZK million Assets 421,720 Change Liabilities 421,720 Change 402,205 18,211 (11.6%) 402,205 28,860 (26.7%) Cash and balances 20,607 Amounts owed with central bank to banks 39,378 Due from banks 122,657 155,602 26.9% 'XHIURP²HVNg 52,642 Amounts owed 287,
Slide 11: Development of the Loans and Advances to Customers
DEVELOPMENT OF THE LOANS AND ADVANCES TO CUSTOMERS Improvement of the structure and coverage CZK million Client loans- On-balance Provisions and general reserves for loan losses sheet - On-balance sheet 7.6% 158,966 14.6% 23,769 147,675 20,732 713 396 80.0% Total standard provisions Total standard 9
Slide 12: Subsidiary and Associated Undertakings Results
SUBSIDIARY AND ASSOCIATED UNDERTAKINGS RESULTS CZK thousand; IAS (unless stated) Total Share of KB Profit after tax Equity Assets $75$'(VUR 100% (14,681) 18,035 43,205 $6,6DV 100% 6,820 7,970 41,618 )DFWRULQJ.%DV 100% 8,983 108,183 2,191,702 ,QYHVWL³QmNDSLWgORYgVSROH³QRVWDV 100% 36,515 206,495 255,6
Slide 13: Consolidated Financial Results and Ratios
CONSOLIDATED FINANCIAL RESULTS AND RATIOS CZK million; IAS Profit and Loss Statement 31.12.2000 31.12.2001 Change Total revenues 24,215 26,433 9.2% Operating costs (16,627) (18,302) 10.1% Income from not fully consolidated companies 886 686 (22.6%) Provisions for loan and investment losses (8,574) (
Slide 14: Content
CONTENT • 2001 Performance – Business Indicators – Financial Performance 2001 Unconsolidated – Financial Performance 2001 Consolidated • Strategic perspectives – Our strategy – New organization – SG support – Transformation Program – Projection of KB performance • Appendix 13
Slide 15: New Strategy for KB
NEW STRATEGY FOR KB Our mission is to become the leading financial institution in retail business (mass-market and corporate) and the core local provider of investment banking services to top corporates in the Czech Republic • We will cover all three key customer segments of the market : Individuals
Slide 16: Current Situation of KB: Our Strengths and Challenges
CURRENT SITUATION OF KB OUR STRENGTH OUR CHALLENGES • Large customer base • Service quality and customer care • Significant market share in some • IT to support customer focused business segments / products model • Successful initiatives in direct channels • Development of our employees • Subsidiari
Slide 17: Key Implications for KB
KEY IMPLICATIONS FOR KB • Strengthen our position in retail banking while sustaining corporate and investment banking – Focus on high-value activities in branches – Standardize / simplify products & processes for retail mass market – Customize products for corporate and investment banking businesses
Slide 18: New Organizational Chart
NEW ORGANIZATIONAL CHART Chairman & CEO Internal Audit Corporate Secretary CEO Office Communication Deputy CEO Risk Management Strategy & Finance In formation Technology Human Resources Transformation Operations Program Office Retail Banking Investment Banking Mass Market MLE Market Corporate Bankin
Slide 19: SG Support in Implementing the Strategy
SG SUPPORT IN IMPLEMENTING THE STRATEGY OUR CHALLENGES SG SUPPORT Service quality and customer care • Sales processes and methodologies IT to support customer focused business • Leveraging expertise both through proven mode solutions and people’s know-how Development of our employees • Trainin
Slide 20: SG Group Support to Focus on Attractive Segments
SG GROUP SUPPORT TO FOCUS ON ATTRACTIVE SEGMENTS Support of SG subsidiaries on attractive segments for KB 40% Mortgages The most attractive • SGAM segments • Asset management and mutual potential ( 3-5 years, CAGR) 30% funds Average annual growth Pension insurance Mutual funds Credit • Together with
Slide 21: Transformation Program to Support the Strategy Implementation
TRANSFORMATION PROGRAM TO SUPPORT THE STRATEGY IMPLEMENTATION Over 150 strategic initiatives identified and captured in a Transformation Master Plan covering each bank division. Initiatives divided into: – Quick wins (in terms of revenues and costs) to be realized by June 2002 – Medium term initia
Slide 22: KB Market Development
KB MARKET DEVELOPMENT Development of credit and deposit volumes in 2001-2004 Growth of KB in Credit (CAGR) Growth of KB in Deposits (CAGR) 12% Individuals The market The market 31% growth: growth: 20% 10% 2001 2004 2001 2004 Small The market 12% The market and Medium Enterprises (1) 14% growth: grow
Slide 23: Key Indicators: Positive development of key future ratios
KEY INDICATORS Positive development of key future ratios IAS, unconsolidated Total revenue (CAGR, 2001-2004) 5% Share of Fees&Commissions from Total revenues (Total growth, 2001-2004) 9% Revenue per employee (CAGR, 2001-2004) 15% Total KB operating costs (CAGR, 2001-2004) ( 5%) Decrease in number of
Slide 24: Content
CONTENT • 2001 Performance – Business Indicators – Financial Performance 2001 Unconsolidated – Financial Performance 2001 Consolidated • Strategic perspectives – Our strategy – New organization – SG support – Transformation Program – Projection of KB performance • Appendix 23
Slide 25: Development of Price of KB's Share and Index PX50 in 2001
CZK .% 3 ; DEVELOPMENT OF PRICE OF KB’s SHARE AND INDEX PX50 IN 2001 27.3.2002 24 Point
Slide 26: Development of 3M, 6M PRIBOR and the RS KB in 2001
Percent 5 6 .% 03 5 ,%2 5 03 5 ,%2 5 DEVELOPMENT OF 3M, 6M PRIBOR AND THE RS KB IN 2001 25
Slide 27: Structure of Shareholders
STRUCTURE OF SHAREHOLDERS 0DMRUVKDUHKROGHUVRI.RPHU´QmEDQNDDVZLWKRYHU RIWKHVKDUHFDSLWDODVDW Others 33.55% Société Générale S.A. 60.00% The Bank of New York ADR Department 6.45% 26
Slide 28: Contacts
CONTACTS Investor Relations Ladislav Šilha Ilona Katzová Head of Investor Relations Investor Relations Officer Telephone: Telephone: +420.2.224.35.152 +420.2.224.32.156 E-mail: ladislav_silha@kb.cz E-mail: ilona_katzova@kb.cz Pavla Adamová 0DUWLQD3ROg³NRYg Investor Relations Officer 7HPSODWH *UDSKLF