Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — Q1 2009 Earnings Presentation
37 slides from Komercni Banka, A.s's earnings presentation, May 7, 2009
Slide 1: KB Group Unaudited 1Q 2009 Financial Results
KB Group Unaudited 1Q 2009 Financial Results (International Financial Reporting Standards) Prague 7 May 2009 KB 1Q 2009 results – Prague – 7 May 2009
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 Highlights Consolidated Financial Results Loan Portfolio Quality and Development Appendix 3 KB 1Q 2009 results – Prague – 7 May 2009
Slide 4: Rapid deterioration of macroeconomic environment in Czech republic
Czech economy Rapid deterioration of macroeconomic environment in Czech republic Real GDP growth (%) Open economy hit by decline in export markets: Gross exports to GDP at 77%, share of exports to euro zone 66%. Share of car industry on GDP almost 8%. 6.3 6.9 6.0 3.1 Sharp drop in exports (-22.2
Slide 5: Highlights of the first quarter of 2009
Highlights of the first quarter of 2009 Year on year comparisons Good operational performance, resilient profitability Net banking income of KB Group rose 8.2% to CZK 8.5 billion Volume of client gross loans up 15.3% to CZK 378.9 billion Excellent liquidity, net loans-to-deposits ratio at 67.8
Slide 6: Business achievements at KB in 1Q 2009 – Individuals
Business achievements at KB (bank) in the first quarter of 2009 – Individuals Year on year comparisons Activity in retail segments less affected by the downturn Number of KB‘s individual clients continued increasing by 44,000 (3.3%) to 1,349,000. Outstanding volume of mortgages up by 18.8% despi
Slide 7: Business achievements in subsidiaries in 1Q 2009 – Individuals
Business achievements in subsidiaries in the first quarter of 2009 – Individuals Year on year comparisons Subsidiaries develop activities upon strength of the KB Group Number of newly signed savings contracts with MPSS continue rising, by 11% to 42,100 Clients‘ pension assets at Penzijní fond KB
Slide 8: Business achievements and initiatives in 1Q 2009 – Corporations
Business achievements and initiatives in the first quarter of 2009 – Corporations Year on year comparisons Corporate clients‘ demand adjusting to the declining economy Overall lending to business clients expanded by 13.1% to 210.9 billion, KB‘s capital and liquidity remains solid to further contin
Slide 9: Group deposits: Diverse deposits development
Group deposits CZK billion By Customers 540.2 539.5 532.5 551.1 554.6 538.8 Diverse deposits development 64.1 63.7 63.8 63.9 65.3 64.8 145.7 146.6 147.3 151.8 154.3 156.9 22.7 23.3 24.4 25.0 25.7 26.0 YoY group deposits flat (-0.1%), QoQ decreased by 2.8% 304.1 292.3 288.9 306.5 305.8 286.0 KB r
Slide 10: Group lending activities: Continued lending in spite of tough environment
Group lending activities Continued lending in spite of CZK billion 350.7 364.3 374.0 378.9 328.6 40.5 tough environment 314.5 35.9 37.5 39.3 33.0 34.3 86.5 90.5 92.6 82.3 75.0 78.0 Gross loans rose 15.3% YoY, 1.3% QoQ 28.4 28.8 29.3 27.2 24.5 25.6 Business loans grew by 13.1% YoY: Small busine
Slide 11: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Development Appendix 11 KB 1Q 2009 results – Prague – 7 May 2009
Slide 12: Consolidated financial results: Profit and Loss Statement
Consolidated financial results Profit and Loss Statement Change 1Q 2008 1Q 2009 YoY (CZK million, unaudited) Net interest income 5,074 5,420 6.8% Net fees & commissions 1,954 1,896 -3.0% Income from financial operations 766 1,129 47.4% Other income 51 45 -11.8% Net banking income 7,845 8,489 8.2% Pe
Slide 13: Consolidated financial results: Balance Sheet
Consolidated financial results Balance Sheet 31 March 31 March Change (CZK million, unaudited) 2008 2009 YoY Assets 679,101 685,554 1.0% Cash and balances with central bank 13,918 9,535 -31.5% Amounts due from banks 202,250 143,506 -29.0% Loans and advances to customers (net) 318,882 365,449 14.6% S
Slide 14: Consolidated financial ratios: Key ratios and indicators
Consolidated financial ratios 31 March 31 March Change Key ratios and indicators 2008 2009 YoY Capital adequacy 11.6% 12.1% S Tier 1 ratio 10.7% 10.7% S Total capital requirement (CZK billion) 25.1 27.0 7.7% Capital requirement for credit risk (CZK billion) 21.2 23.1 8.9% Risk weighted assets for cr
Slide 15: Net interest income: Margin pressure moves from loans to deposits
Net interest income Margin pressure moves from loans to deposits 5,676 5,420 4,979 5,236 5,276 YoY increase in NII of 6.8%, QoQ -4.5% 5,074 436 610 478 390 436 457 MPSS NII up 13%. ESSOX NII up 18% YoY. 1,929 1,667 1,748 1,832 1,915 1,647 Standalone KB NII rose 6% YoY NII from loans – improvin
Slide 16: Net fees and commissions: Fee income impacted by slower economic activity
Net fees and commissions Fee income impacted by slower economic activity 2,025 2,105 1,954 1,989 2,002 Fees down -3.0% YoY, -5.3% QoQ. Comparison 158 1,896 153 156 160 163 influenced by positive one-off in 2008 (interchange fees 156 511 510 settlement of CZK 205 million in FY2008, of which CZK 497
Slide 17: Net profit from financial operations
Net profit from financial operations Excellent result of the first quarter, product demand structure driven by macroeconomic trends 1,543 Net profit from financial operations increased by 1,129 956 47.4% YoY. Adjusted for one-off profit from securities 1,085 841 958 gain in 4Q of CZK 485 m (Prague
Slide 18: Operating costs: Tight overhead cost control
Operating costs Tight overhead cost control 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 OPEX YoY lower by 4.3%, QoQ down 11.3% compared to seasonally strong 4Q -1,480 -1,495 -1,558 -1,602 -1,664 -1,606 Personnel costs up 7.4% on higher average headcount (+2.9%) and increase in average salary
Slide 19: Shareholders' equity
Shareholders‘ equity Total shareholders‘ equity Total shareholders‘ equity - 558 as at 31 December 2008 as at 31 March 2009 Shareholders' equity 31/12/2008 1/1/2009 Increase Decrease 31/03/2009 Share capital 19,005 19,005 19,005 Capital and reserve funds 25,203 38,364 -58 38,306 - Retained earnings,
Slide 20: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Development Appendix 20 KB 1Q 2009 results – Prague – 7 May 2009
Slide 21: Loan quality: Confirmed impacts of the economy downturn
Loan quality Confirmed impacts of the on-going economy downturn on loan quality Gross exposure CZK billion 364.3 374.0 378.9 1.3% (+CZK 4.9 billion) QoQ increase of loan portfolio, 328.6 350.7 confirming slower growth of lending activities and 314.5 reflected latest trends in market conditions (2.
Slide 22: Cost of risk: Rising in all client segments
Cost of risk Rising cost of risk observed in all client segments 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 89 111 37 37 46 35 108 53 QoQ provisions for loan losses up from CZK 1 285 million 200 36 34 33 39 11 11 in Q4 2008 to CZK 1 573 million in Q1 2009 -441 -443 -445 QtD provisions for l
Slide 23: Cost of risk: Zoom on corporate client segments
Cost of risk Zoom on corporate client segments Cost of risk - Client Concentration CZK million Fast rising cost of risk from 20-40 bp range in 2008 to 1,600 over 120 bp in Q1 2009 1,200 Top 5 contributors to net provisions reaching over 80% of Other client total net provisions booked in Q1 2009
Slide 24: Cost of risk: Zoom on mass retail client segments
Cost of risk 3M Default Rate - Consumer Loans and Credit Zoom on mass retail client segments 2.0% Cards - KB Solo 1.5% 1.0% 0.5% Increase in cost of risk from 66 bp YtD in Q4/2008 to 91 0.0% bp YtD in Q1 2009 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 Consumer loans Credit cards Higher risk indicat
Slide 25: Agenda
Agenda Business Highlights Consolidated Financial Results Loan Portfolio Quality and Development Appendix 25 KB 1Q 2009 results – Prague – 7 May 2009
Slide 26: Number of clients and distribution network
Number of clients and distribution network Dynamic growth of KB's portfolio and networks Clients of KB (bank) Clients KB bank 1,632,000 clients (+3%) MPSS 731,000 clients (-4%) 1,577 1,628 1,632 PFKB 492,000 clients (+3%) 1,407 1,467 1,515 ESSOX 244,000 active clients (+40%) Network 39
Slide 27: KB consolidated group
KB consolidated group Pension Penzijní fond KB Fourth largest pension fund in the Czech Republic offering pension insurance to insurance (100%) almost 492 thousand clients. Modrá pyramida Building Third largest building society with 731,000 clients offering state-subsidised stavební spořitelna socie
Slide 28: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 1Q 2008 1Q 2009 Change YoY MPSS Volume of new loans (CZK million) 2,855 2,153 -25% Volume of total loans (gross, CZK million) 34,292 40,526 18% Target volume of new contracts (CZK million) 9,995 9,545 -5% Volume of deposits (CZK million) 63,687 64,991 2% Numb
Slide 29: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 1Q 2008 1Q 2009 Change YoY Factoring Factoring turnover (CZK million) 3,924 3,128 -20% KB New contracts (number) 66 71 8% Number of FTEs 41 42 4% KBB Total client loans (gross, CZK milion) 3,855 6,128 59% Total client deposits (CZK milion) 2,123 2,499 18% Num
Slide 30: 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 n.a. 2,319 -11.7% 59,283 12.1% 600,854 0.9% ESSOX, s.r.o. IFRS 51% 39 -29.1% 2,346 5.9% 9,332 21.2% Factoring KB, a.s. CAS 100% -1 +/- 1,444 3.
Slide 31: Revaluation of MPSS balance sheet
Revaluation of MPSS balance sheet Background ► Remaining 60% in Modrá pyramida acquired in October 2006. Full consolidation of MPSS since 4Q 2006 ► Preliminary goodwill on acquisition of Modrá pyramida at CZK 2,741 mil. ► In accordance with IFRS 3 A&L valuation to be completed within 12 months after
Slide 32: Pro-forma Profit and Loss without one-offs
Recurring profit Pro-forma Profit and Loss without one-offs Change 1Q 2008 1Q 2009 YoY Net banking income 7,747 8,449 9.1% Net interest income 4,987 5,379 7.8% Non-interest income 2,760 3,070 11.2% - 8.5% Operating costs -3,512 -3,435 -2.2% Personnel expenses -1,495 -1,606 7.4% 3,027 Other costs -2,
Slide 33: Macroeconomic environment: Czech Republic
Macroeconomic environment Czech Republic Macroeconomic Indicators 2005 2006 2007 2008 2009* Real GDP (%, average) 6.3 6.9 6.0 3.1 -2.0 Inflation (%, average) 1.9 2.5 2.8 6.3 2.0 Household consumption (%, average) 2.5 5.4 5.2 2.9 1.2 Unemployment (%, av., MLSA meth.) 8.9 8.0 6.5 5.5 8.5 M2 (%, averag
Slide 34: Interest rates evolution
Interest rates evolution (for the period 28 December 2001 – 29 April 2009) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 28/12/2001 28/12/2002 28/12/2003 28/12/2004 28/12/2005 28/12/2006 28/12/2007 28/12/2008 Pribor 3M Pribor 6M KB Reference Rate ČNB REPO Rate 34 KB 1Q 2009 results – Prague – 7 May 2009
Slide 35: 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 2009) 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 01/10/2001 01/10/2002 01/10/2003 01/10/2004 01/10/2005 01/10/2006 01/10/2007 01/10/2008 KB (left scale)
Slide 36: KB shareholders
KB shareholders As at 22 April 2009 According to excerpt from the Securities centre Others 39.6% Société Générale 60.4% 36 KB 1Q 2009 results – Prague – 7 May 2009
Slide 37: Investor Relations
Investor Relations Jakub Černý, Renáta Buchtová, Georgina Olegrová Tel.: +420 955 532 156, 955 532 155, 955 532 734 E-mail: investor_relations@kb.cz - Internet: www.kb.cz 37 KB 1Q 2009 results – Prague – 7 May 2009