Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — H1 2016 Earnings Presentation
31 slides from Komercni Banka, A.s's earnings presentation, Aug 3, 2016
Slide 1: Komerční banka Group Financial results as of 30 June 2016
Komerční banka Group Financial results as of 30 June 2016 According to International Financial Reporting Standards, consolidated, unaudited Prague, 3 August 2016
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 22 3
Slide 4: Economy of the Czech Republic
Economy of the Czech Republic GDP driven by strong private and foreign demand but less public investments Czech GDP +3.0% YoY in 1Q16 (+0.4% QoQ). Real GDP outlook (YoY, %) Solid external position. Foreign trade set to print record surplus. Cumulative 12-month current account 4.6 surplus at 2.1% of
Slide 5: Komerční banka in the first half of 2016
Komerční banka in the first half of 2016 Dynamic growth in business volumes Financial result boosted by a one-off KB introduced new advantageous credit products tailored for businesses employing young people under 30, and projects of energy savings. Both in cooperation with EIB Active development Wi
Slide 6: Selected deals of the second quarter of 2016
Selected deals of the second quarter of 2016 6
Slide 7: Loans to clients
Loans to clients Strong lending dynamics in all main segments CZK billion 548.2 548.8 570.8 Gross loans up 9.9% YoY, +4.0% QoQ 513.7 519.4 534.0 37.0 37.1 37.7 37.5 37.0 36.7 Group housing loans +10.9% YoY, of which 185.2 189.1 194.9 166.4 172.8 179.1 29.8 30.6 30.8 31.5 28.8 29.4 Mortgages +12.8% Y
Slide 8: Deposits and other assets under management
Deposits and other assets under management Client balances growing CZK billion Group deposits along with market trend 644.0 635.5 657.7 656.3 679.1 694.3 67.0 64.9 72.1 70.1 69.3 68.5 Standard Group deposits (excluding repo) grew by 200.5 208.9 181.1 185.6 189.6 197.4 +10.2% YoY to CZK 690.0 billion
Slide 9: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 19 Appendix 22 9
Slide 10: Consolidated income statement
Consolidated income statement Recurring revenues almost stable despite margin pressure, OPEX under control, risk costs higher Profit and Loss Statement 1H 2015 1H 2016 1H 2016 YoY YoY * (CZK million, unaudited) Restated * Reported Recurring** Recurring** Net interest income 10,669 10,446 10,446 -2.1
Slide 11: Consolidated statement of financial position
Consolidated statement of financial position Balance sheet growth driven mainly by client deposits 30 Jun 31 Dec 30 Jun Balance Sheet 2015 2015 2016 YoY Ytd (CZK million, unaudited) Restated* Restated* Reported Assets 890,638 891,555 939,782 5.5% 5.4% Cash and balances with central bank 136,098 128,
Slide 12: Shareholders' equity
Shareholders’ equity Equity lower due to payment of annual dividend Contributions to equity in 1H 2016 Shareholders’ equity declined year-to-date by 3.4% to CZK 102.6 billion, due to a payment of CZK 11.7 6,695 106,229 billion in dividends 3,041 18 102,648 -1,457 -170 Revaluation gains on cash flow
Slide 13: Financial ratios
Financial ratios Key ratios and changes in regulatory requirements (year-to-date) 30/6/2015 1 31/12/2015 1 30/6/2016 YoY Ytd 2 Capital adequacy 16.5% 16.3% 15.3% 2 Tier 1 ratio 16.5% 16.3% 15.3% Total risk weighted assets (CZK billion) 397.7 407.6 429.8 8.1% 5.4% Risk weighted assets for credit risk
Slide 14: Net interest income
Net interest income Margin pressure mitigated by loan volume growth NII down 2.1% YoY* in 1H 2016, 2Q 2016 -0.4% QoQ 5,348 5,321 5,334 5,354 5,234 5,213 467 413 396 349 319 316 NII from loans – increase driven by growth in volumes. Intense market competition put pressure on 2,500 2,533 2,569 2,640 2
Slide 15: Net fees and commissions
Net fees and commissions Lower prices partly offset by more activity and AUM NFC in 1H 2016 declined by 2.4% YoY, driven by 1,790 1,765 1,701 1,712 1,700 1,708 lower fees from basic services partially offset by 226 254 224 219 212 267 higher transaction activity 211 212 203 183 229 211 279 269 274 2
Slide 16: Net profit from financial operations
Net profit from financial operations Solid recurring result plus a one-off gain 1,626 Net profit from financial operations in 1Q 2016 rose 373 by 89.2% YoY, 2Q 16 +121.5% QoQ. Excluding 297 one-off gain, 1H 2016 NPFO +12.3% YoY, 2Q 2016 774 734 -9.3% QoQ 660 587 589 494 441 399 332 283 956 In 2Q 201
Slide 17: Operating expenditures
Operating expenditures Costs under control 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 Total OPEX in 1H 2016 -0.1% YoY 178 The cost of the Deposit Insurance Fund and -1,677 -1,696 -1,720 -1,700 -1,692 -1,737 Resolution Fund totalled CZK 874 million in 1H 2016, which in accordance with the IFRIC
Slide 18: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 19 Appendix 22 18
Slide 19: Loan portfolio quality
Loan portfolio quality Exposure growth with persisting good asset quality CZK billion Gross lending 570.8 Loan exposure +9.9% YoY, gaining momentum 519.4 534.0 548.2 548.8 513.7 in 2Q 2016, QoQ +4% LUSR exposure down to 4% (5.1% in 1H 2015) 483.9 500.4 516.3 518.4 540.3 477.0 and NPL exposure down t
Slide 20: Cost of Risk
Cost of Risk Cost of risk driven by Corporate segment YtD Cost of Risk at 29 bps (up from exceptionaly Total Cost of Risk (Year-to-date, in basis points) 64 low 1H 2015 base at 5 bps) 38 14 21 16 7 18 29 Very low Cost of Risk on Retail due to low 11 17 8 5 number of defaults and successful recovery.
Slide 21: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 19 Appendix 22 21
Slide 22: Number of clients and distribution network
Number of clients and distribution network Number of bank clients (thousands, CZ) KB Group’s 2.4 million clients, of which KB bank 1,649,000 clients (+1%) MPSS 503,000 clients (-6%) KBPS 540,000 clients (-2%) 1,647 1,649 1,602 1,602 1,589 1,626 ESSOX 210,000 active clients (-17%) Network 396 branche
Slide 23: Consolidated income statement – quarterly view
Consolidated income statement – quarterly view Profit and Loss Statement 2Q 2015 1Q 2016 2Q 2016 YoY QoQ (CZK million, unaudited) Restated Net interest income 5,321 5,234 5,213 -2.0% -0.4% Net fees & commissions 1,790 1,700 1,708 -4.6% 0.5% Income from financial operations 587 734 1,626 177.0% 121.5
Slide 24: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 1H 2015 1H 2016 YoY Modrá pyramida (100%), #3 building savings & loans company Volume of new loans (CZK million) 2,544 4,723 86% Volume of total loans (gross, CZK million) 36,951 37,698 2% Volume of deposits (CZK million) 70,083 64,936 -7% Number of clients 5
Slide 25: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 1H 2015 1H 2016 YoY Factoring KB (100%), #1 on the Czech factoring market Factoring turnover (CZK million) 17,445 17,402 0% Volume of total financing (gross, CZK million) 5,966 6,647 11% Average number of FTEs 43 45 4% Komerční pojišťovna (49%), a universal i
Slide 26: Debt securities portfolio in the banking book
Debt securities portfolio in the banking book CZK billion, as of 30 June 2016 Available-for-sale portfolio Held-to-maturity portfolio CZK 39.6 billion CZK 62.4 billion 9.2 8.1 EIB, 1.1 Poland, 0.8 Poland, 6.0 20.1 Romania, 1.9 8.1 53.2 9.2 Slovakia, 4.3 0.8 10.6 Slovakia, 3.2 Czech sovereign Czech s
Slide 27: Macroeconomic environment – Czech Republic
Macroeconomic environment – Czech Republic Macroeconomic Indicators 2012 2013 2014 2015 2016* 2017* Real GDP (%, average) -0.7 -0.5 2.7 4.6 2.1 2.6 Inflation (%, average) 3.3 1.4 0.4 0.3 0.5 2.0 Household consumption (%, average) -1.2 0.5 1.8 3.1 2.8 2.2 Unemployment (%, av., MLSA meth.) 6.8 7.8 7.6
Slide 28: Interest rates evolution
Interest rates evolution (for the period 1 January 2005 – 27 July 2016) 28
Slide 29: Development of KB's share price and PX Index
Development of KB’s share price and PX Index (for the period 1 October 2001 – 27 July 2016) 29
Slide 30: KB shares
KB shares The General Meeting held on 22 April 2016 approved a split of shares of Komerční banka in the ratio of 5:1. The split took effect on 25 April 2016 by its entry in the Register of companies. Central Securities Depository changed the KB entry as of 11 May 2016. As a results, shareholders rec
Slide 31: Investor Relations
Investor Relations Jakub Černý, Robert Janeček, Renata Swaczynová, Kamila Corbet Tel.: +420 955 532 156, 955 532 734, 955 532 155 E-mail: investor_relations@kb.cz - Internet: www.kb.cz 31