Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — Q1 2014 Earnings Presentation
35 slides from Komercni Banka, A.s's earnings presentation, May 7, 2014
Slide 1: Komerční banka Group Financial results as of 31 March 2014
Komerční ní banka Group Financial results as of 31 March 2014 201 According to International Financial Reporting Standards, consolidated, unaudited Prague, 7 May 2014
Slide 2: Disclaimer
Disclaimer This document contains a number of forward-looking 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.
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, %) Firm recovery. GDP in 4Q 2013 rose by 1.8% 2.6 QoQ, +1.2% YoY (partly affected by one-offs), 2.3 1.9 1.8 main contribution came from gross fixed capital formation (+5.1% QoQ, +2.7% YoY) -0.9 -0.9 In 1Q 14 industrial and construction production rose, exports an
Slide 5: Komerční banka in the first quarter of 2014
Komerční banka in the first quarter of 2014 Gross loans up 2.7% driven by mortgages. Recovery in consumer loans Valuable Deposits +8.4% increasing in all segments, mainly in corporate franchise Solid growth in non-bank bank AUM (life insurance, mutual funds, pension funds) Good business Number of cl
Slide 6: Selected deals of the first quarter
Selected deals of the first quarter CARTHAMUS a.s. Czech Gas Holding Investment Senior Term Loan Facility Term Loan Facility Agreement Term Loan Facility Agreement Agreement Acquisition financing of ca 40% CZK 4,100,000,000 CZK 430,000,000 share in NAFTA, a.s. Acquisition financing of 49,35 % EUR 10
Slide 7: Lending to clients
Lending to clients CZK billion 475.7 491.5 484.9 469.1 472.3 475.0 46.8 45.2 43.6 42.1 49.3 48.3 Gross loans rose 2.7% YoY*, -1.3% QoQ. 134.4 137.3 141.5 146.2 147.8 Growth driven by mortgages, recovery in 133.3 27.5 27.0 27.5 28.0 28.5 28.8 consumer lending Mortgages to individuals up 10.0% YoY to
Slide 8: Deposits and assets under management
Deposits and assets CZK billion By Customers 658.9 under management 579.1 598.7 606.9 609.3 649.2 72.3 72.5 71.8 71.4 71.3 71.8 161.8 162.9 Group deposits up 8.4% YoY* to CZK 639.3 bil., 156.4 157.7 157.4 157.3 35.8 37.2 +2.4% QoQ (excluding repos with clients). Total 31.9 33.2 34.0 34.9 amounts due
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 Change 1Q 2013 1Q 2014 YoY (CZK million, unaudited) Net interest income 5,259 5,279 0.4% Net fees & commissions 1,725 1,690 -2.0% Income from financial operations 597 571 -4.4% Other income 33 26 -21.2% Net banking income 7,614 7,566 -0.6% Per
Slide 11: Consolidated statement of financial position
Consolidated statement of financial position 31 Mar 31 Dec 31 Mar Change Change Balance Sheet 2013 2013 2014 YoY YtD (CZK million, unaudited) Assets 811,032 863,980 869,566 7.2% 0.6% Cash and balances with central bank 51,452 44,405 55,187 7.3% 24.3% Amounts due from banks 67,130 125,735 118,936 77.
Slide 12: Shareholders' equity
Shareholders‘ equity Development year-to-date Total shareholders‘ equity +5,458 458 Total shareholders‘ equity as of 31 December 2013 as of 31 March 2014 31/12/2013 1/1/2014 Increase Decrease 31/03/2014 Share capital 19,005 19,005 19,005 Capital and reserve funds 47,439 59,967 21 59,988 - Retained e
Slide 13: Financial ratios
Financial ratios Key ratios and indicators 31 Mar 31 Mar Change 2013 2014 YoY (year-to-date) Capital adequacy * 14.9% 16.2% n.a. Tier 1 ratio * 14.9% 16.2% n.a. Total risk weighted assets (CZK billion)* 360.9 375.5 n.a. Risk weighted assets for credit risk (CZK billion)* 304.7 314.6 n.a. Net interes
Slide 14: Net interest income
Net interest income 5,452 5,327 5,293 5,328 5,259 5,279 526 503 462 419 416 461 NII in 1Q 2014 up by 0.4% YoY. 1Q down by 0.9% QoQ 2,423 2,349 2,434 2,395 2,448 2,392 NII from loans – YoY up due to growing volumes. Development of spreads on some loan products 2,479 2,384 2,397 2,447 2,430 2,392 refl
Slide 15: Net fees and commissions
Net fees and commissions 1,742 1,800 1,790 1,761 1,725 1,690 142 176 217 177 NFC in 1Q 2014 down by 2.0% YoY. 1Q down by 185 222 250 319 322 272 4.0% QoQ 337 233 356 334 372 340 331 318 Deposit product fees – clients‘ shift to cheaper 165 173 141 153 131 159 packages within the MojeOdměny rewards pr
Slide 16: Net profit from financial operations
Net profit from financial operations 727 729 Net profit from financial operations in 1Q 2014 661 597 571 down by 4.4% YoY. 1Q increase by 13.5% QoQ 220 503 359 due to previous quarter affected by extraordinary 332 297 205 285 negative derivative valuation adjustments 340 309 Limited demand for FX an
Slide 17: Operating costs
Operating costs 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 OPEX in 1Q 2014 up by 0.3% YoY. 1Q down by 10.0% QoQ affected by usual seasonality -1,721 -1,634 -1,681 -1,719 -1,694 -1,655 Personnel costs in 1Q 2014 up by 1.3% YoY. Average staff level decreased by 1.2% -1,028 -1,044 -1,184 -1,128 -1
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 CZK billion Gross lending 475.0 491.5 484.9 469.1 472.3 475.7 Loan exposure +2.7% YoY, -1.3% QoQ Share of Standard and Watch loan exposure stable at 94.3% (94.4% in 4Q 2013) 431.0 434.5 437.0 438.7 454.4 447.6 Share of LUSR exposure at 5.7% (5.6% in 4Q 11.1 10.4 10.8 9.6 9.6 9.7 2013) 2
Slide 20: Cost of risk
Cost of risk Total Cost of Risk development 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 1Q 2014 cost of commercial risk in CZK 46 60 40 42 38 37 42 increased QoQ driven by Retail segment 40 41 40 41 42 32 33 20 YoY cost of risk up to 42 bps from 40 bps driven 1 13 18 65 0 by Corporates -527 -484
Slide 21: Commercial cost of risk - zoom on client segments
Commercial cost of risk - zoom on client segments KB Group – Corporate Segments 1Q 2014 cost of risk on Corporates slightly 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 150 decreased QoQ 38 43 19 29 35 34 50 YoY Corporate cost of risk up to 43 bps from -50 29 bps influenced mainly by creations on
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 1,600,000 clients (+1%) MPSS 577,000 clients (-3%) KBPS 560,000 clients (-1%) 1,620 1,590 1,602 1,602 1,589 1,600 ESSOX 286,000 active clients (+10%) Network 398 branches for
Slide 24: Consolidated financial results
Consolidated financial results Profit and Loss Statement Change Change 1Q 2013 4Q 2013 1Q 2014 YoY QoQ (CZK million, unaudited) Net interest income 5,259 5,328 5,279 0.4% -0.9% Net fees & commissions 1,725 1,761 1,690 -2.0% -4.0% Income from financial operations 597 503 571 -4.4% 13.5% Other income
Slide 25: KB consolidated group
KB consolidated group KB Penzijní Pension Management company for Transformed Fund (pension fund with 560,000 clients) and for společnost insurance new pension funds in 2nd and 3rd pillars of the Czech pension system (100%) Modrá pyramida Building #2 largest building savings bank according to loan vo
Slide 26: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 Change 1Q 2013 1Q 2014 YoY MPSS Volume of new loans (CZK million) 791 536 -32% Volume of total loans (gross, CZK million) 48,285 42,150 -13% Volume of deposits (CZK million) 71,775 72,531 1% Number of clients 596,825 576,638 -3% Average number of FTEs 341 343
Slide 27: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 Change 1Q 2013 1Q 2014 YoY Factoring Factoring turnover (CZK million) 5,403 7,670 42% KB Volume of total financing (gross, CZK million) 3,287 4,875 48% Average number of FTEs 41 42 2% KP Volume of technical reserves (CZK million) 30,026 38,040 27% Premium wri
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% 2,552 -13.3%* 88,425 -1.0% 781,306 9.2% - o/w KB branch in Slovakia IFRS 100% 37 12.1% n.a. n.a. 24,956 28.7% ESSOX, s.r.o. IFRS 50.93% 12
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 75.3 billion CZK 72.6 billion 40.8 65.3 8.4 1.8 20.8 7.4 3.4 Czech sovereign Foreign sovereign Czech financial institutions Foreign financial institutions Czech sovereign Foreign sovereig
Slide 30: Foreign sovereign exposure
Foreign sovereign exposure 8..4 CZK billion EIB, 1.5 7.4 France, 0.2 Poland, 1.3 Poland, 2.8 3.4 Slovakia, 5.7 EIB, 0.2 Slovakia, 4.4 Poland, 0.1 Slovakia, 3.1 Trading book 1) Available-for-sale 1) Available Held-to-maturity 2) Measurement at [1] fair value; [2] amortized cost 30
Slide 31: Macroeconomic environment – Czech Republic
Macroeconomic environment – Czech Republic Macroeconomic Indicators 2010 2011 2012 2013 2014* 2015* Real GDP (%, average) 2.3 1.8 -0.9 -0.9 1.9 2.6 Inflation (%, average) 1.5 1.9 3.3 1.4 0.8 1.8 Household consumption (%, average) 0.9 0.5 -2.1 0.1 1.1 1.2 Unemployment (%, av., MLSA meth.) 7.0 6.6 6.8
Slide 32: Interest rates evolution
Interest rates evolution (for the period 1 January 2005 – 28 April 2014) 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 01/01/2011 01/01/2012 01/01/2013 01/01/2014 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 – 28 April 2014) 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 1/10/01 1/10/02 1/10/03 1/10/04 1/10/05 1/10/06 1/10/07 07 1/10/08 1/10/09 1/10/10 1/10/11 1/10/12 1/10
Slide 34: KB shareholders
KB shareholders As of 31 March 2014 Shares on registered capital according to excerpt from the Securities centre Others 39.6% Société Générale 60.4% As of 31 March 2014, KB held 238,672 own shares in treasury, representing 0.63% stake on registered capital. 34
Slide 35: Investor Relations
Investor Relations Jakub Černý, erný, Georgina Olegrová, Olegrová Robert Janeček Tel.: +420 955 532 156, 955 532 734, 734 955 532 155 E-mail: mail: investor_relations@kb.cz - Internet: www.kb.cz 35