Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — Q1 2015 Earnings Presentation
34 slides from Komercni Banka, A.s's earnings presentation, May 6, 2015
Slide 1: Komerční banka Group Financial results as of 31 March 2015
Komerční banka Group Financial results as of 31 March 2015 According to International Financial Reporting Standards, consolidated, unaudited Prague, 6 May 2015
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 Good macroeconomic performance, local interest rates influenced by ECB monetary action Czech GDP in 4Q14 +0.4% QoQ. Domestic Real GDP outlook (YoY, %) consumption was the main driver of the growth. 2.9 2.7 2.0 2.0 Retail sales rose 7.2% YoY, industrial production +4.5%,
Slide 5: Komerční banka in first quarter 2015
Komerční banka in first quarter 2015 Solid growth in lending with improvement in retail segments Valuable Growing business, Growing trend in activity of clients, assets under management franchise attracting clients Increasing number of clients, attracted by MojeOdměny concept Revenues stable thanks
Slide 6: Selected deals of the first quarter of 2015
Selected deals of the first quarter of 2015 Multiscan s.r.o. CTPark Brno Campus s.r.o. Witte Group Investment Loan Real Estate Financing Term and Revolving Facilities project with EU Subsidy IR Hedging Agreement CZK 157,000,000 EUR 30,000,000 EUR 95,000,000 Coordinator, Mandated Lead Arranger Comple
Slide 7: Positive trend of lending maintained
Loans to clients Positive trend of lending maintained CZK billion 513.4 513.7 491.5 484.9 491.8 494.7 Gross loans up 5.9% YoY, +0.1% QoQ affected by a 40.8 39.6 38.3 37.5 43.6 42.1 seasonal pattern in corporate lending 146.2 151.2 155.4 159.8 163.7 147.8 Solid development in retail and SME lending,
Slide 8: Rising total deposits and assets under management
Deposits and assets under management Rising total deposits and CZK billion Group deposits assets under management 623.8 619.1 640.7 661.7 659.5 71.8 72.4 72.1 72.5 72.1 Standard Group deposits (excluding repo) rose by 172.9 178.4 181.1 162.9 167.8 +7.8% YoY to CZK 650.0 billion, +2.2% QoQ The Transf
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 Result of the first quarter boosted by commercial hedging demand and low cost of risk Change Change Profit and Loss Statement 1Q 2014 1Q 2014 1Q 2015 YoY YoY (CZK million, unaudited) Reported Pro forma Reported Like-for-like Net interest income 5,279 5,079 5,126 -2.9% 0
Slide 11: Consolidated statement of financial position
Consolidated statement of financial position Balance sheet stable 31 Mar 31 Dec 31 Mar Change Change Balance Sheet 2014 2014 2015 YoY Ytd Pro forma Pro forma Reported Like-for-like (CZK million, unaudited) Assets 833,434 911,829 912,188 9.4% 0.0% Cash and balances with central bank 55,187 152,904 14
Slide 12: Shareholders' equity
Shareholders’ equity Equity increased by quarter’s earnings Development year-to-date Total shareholders’ equity +3,483 Total shareholders’ equity as of 31 December 2014 as of 31 March 2015 31/12/2014 1/1/2015 Increase Decrease 31/3/2015 Share capital 19,005 19,005 19,005 Capital and reserve funds 51
Slide 13: Financial ratios
Financial ratios Healthy capital and liquidity, defending margins Key ratios and indicators 31 Mar 31 Mar Change 2014 2015 YoY (year-to-date) 1 Capital adequacy 16.2% 16.7% 1 Tier 1 ratio 16.2% 16.7% Total risk weighted assets (CZK billion) 375.5 392.9 4.6% Risk weighted assets for credit risk (CZK
Slide 14: Net interest income
Net interest income Like-for-like interest income maintained thanks to volume growth despite further drop in interest rates NII adjusted for impact from deconsolidation of TF 5,079 5,131 5,185 5,200 5,126 added in 1Q 2015 +0.9% YoY, but down by 1.4% 504 469 434 466 467 QoQ. Reported NII -2.9% YoY, -
Slide 15: Net fees and commissions
Net fees and commissions Decline in fee income due to clients’s fast shift to new packages and digital channels Like-for-like NFC in 1Q 2015 dropped by 4.0% YoY 1,770 1,791 1,733 1,791 1,699 and 5.1% QoQ. Reported NFC higher by 0.5% YoY 242 205 185 196 219 259 253 229 due to fees from the Transforme
Slide 16: Net profit from financial operations
Net profit from financial operations Multiple client hedging deals concluded in the first quarter upon increased volatility 663 660 Net profit from financial operations in 1Q 2015 up 646 571 by 15.6% YoY, slightly down by 0.5% QoQ 503 506 341 346 398 Elevated CZK volatility drove clients’ demand for
Slide 17: Operating expenditures
Operating expenditures Priority projects developed while costs kept tight 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 OPEX in 1Q 2015 +0.3% YoY. 1Q down by 9.3% QoQ affected by usual seasonality -1,694 -1,655 -1,679 -1,733 -1,687 -1,677 Personnel costs in 1Q 2015 up by 1.3% YoY. Average staff le
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 Persisting good loan quality Gross lending CZK billion 513.4 513.7 491.5 484.9 491.8 494.7 Loan exposure +5.9% YoY, QoQ flat Share of LUSR exposure stable at 5.3% (5.2% in 4Q 2014) 454.4 447.6 454.7 458.9 477.0 477.0 Share of NPL exposure flat at 3.8% (3.9% 9.6 9.7 9.9 8.7 9.7
Slide 20: Cost of risk
Cost of risk Cost of risk at exceptionally low level Total Cost of Risk (Year-to-date, in basis points) 43 40 42 CoR in 1Q 2015 decreased by 79.0% YoY 37 36 34 38 39 and by 48.3% QoQ 32 37 30 25 26 16 Cost of risk declined to 8 bps in 1Q 2015 as 22 18 8 a result of continuing favourable 8 environmen
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 (ths., CZ) KB Group’s 2.5 million clients, of which KB bank 1,630,000 clients (+2%) MPSS 548,000 clients (-5%) KBPS 553,000 clients (-1%) 1,590 1,602 1,602 1,589 1,626 1,630 ESSOX 267,000 active clients (-6%) Network 398 branches for
Slide 23: Consolidated income statement – reported and like-for-like
Consolidated income statement – reported and like-for-like Change Change Profit and Loss Statement 1Q 2014 1Q 2014 4Q 2014 4Q 2014 1Q 2015 Change YoY Change QoQ (CZK million, unaudited) Reported Pro forma Reported Pro forma Reported YoY Like-for- QoQ Like-for- Reported like Reported like Net interes
Slide 24: Consolidated balance sheet – reported and like-for-like
Consolidated balance sheet – reported and like-for-like 31 Mar 31 Mar 31 Dec 31 Dec 31 Mar Change Change Change Change Balance Sheet 2014 2014 2014 2014 2015 YoY Ytd YoY Ytd (CZK million, unaudited) Reported Pro forma Reported Pro forma Reported Like-for-like Assets 869,566 833,434 953,261 911,829 9
Slide 25: KB consolidated group
KB consolidated group KB Penzijní Pension Management company for Transformed Fund (pension fund with 553,000 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 2014 1Q 2015 YoY MPSS Volume of new loans (CZK million) 536 866 61% Volume of total loans (gross, CZK million) 42,150 37,518 -11% Volume of deposits (CZK million) 72,531 72,115 -1% Number of clients 576,638 548,049 -5% Average number of FTEs 343 332
Slide 27: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 Change 1Q 2014 1Q 2015 YoY Factoring Factoring turnover (CZK million) 7,670 8,296 8% KB Volume of total financing (gross, CZK million) 4,875 5,588 15% Average number of FTEs 42 39 -7% KP Volume of technical reserves (CZK million) 38,040 43,956 16% Premium wri
Slide 28: Securities portfolio in the banking book
Securities portfolio in the banking book As of 31 March 2015 CZK billion Available-for-sale portfolio Held-to-maturity portfolio CZK 44.6 billion CZK 70.0 billion 59.6 6.4 21.0 0.8 16.5 10.4 Czech sovereign Foreign sovereign Czech sovereign Foreign sovereign Czech financial institutions Foreign fina
Slide 29: Foreign sovereign exposure
Foreign sovereign exposure As of 31 March 2015 10.4 CZK billion Poland, 5.3 6.4 EIB, 1.2 4.7 EIB, 0.1 Poland, 0.1 Poland, 0.8 Slovakia, 4.5 Slovakia, 4.3 Slovakia, 5.0 Trading book 1) Available-for-sale 1) Held-to-maturity 2) Measurement at [1] fair value; [2] amortized cost 29
Slide 30: Macroeconomic environment – Czech Republic
Macroeconomic environment – Czech Republic Macroeconomic Indicators 2011 2012 2013 2014 2015* 2016* Real GDP (%, average) 2.0 -0.7 -0.7 2.0 2.9 2.7 Inflation (%, average) 1.9 3.3 1.4 0.4 0.4 2.0 Household consumption (%, average) 0.3 -1.8 0.4 1.7 2.8 1.7 Unemployment (%, av., MLSA meth.) 6.6 6.8 7.8
Slide 31: Interest rates evolution
Interest rates evolution (for the period 1 January 2005 – 27 April 2015) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Pribor 3M Pribor 6M ČNB REPO Rate IRS 5Y IRS 10Y 31
Slide 32: 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 April 2015) 500% 400% 300% 200% 100% 0% 2001 2003 2005 2007 2008 2010 2012 2014 KB PX index 32
Slide 33: KB shareholders
KB shareholders As of 31 March 2015 The number of shareholders comprised 42,461 corporate entities and private individuals. Of the Bank’s total share capital of CZK 19,004,926,000 divided into 38,009,852 shares with a nominal value of CZK 500 each, Société Générale S.A. holds 60.35%. Others 39.6% So
Slide 34: 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 34