Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — Q1 2017 Earnings Presentation
31 slides from Komercni Banka, A.s's earnings presentation, May 4, 2017
Slide 1: Komerční banka Group Financial results as of 31 March 2017
Komerční banka Group Financial results as of 31 March 2017 According to International Financial Reporting Standards, consolidated, unaudited Prague, 4 May 2017
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 Market conditions in the first quarter 2017 influenced by expected exit from currency interventions GDP in 4Q16 up 0.4% QoQ, (+1.9% YoY). Positive Real GDP outlook (YoY, %) contribution from domestic consumption and foreign trade while investment activity was low due
Slide 5: KB in first quarter 2017: Active support of the Czech economy, preparing for the future
KB in first quarter 2017: Active support of the Czech economy, preparing for the future KB Group’s lending to clients expanded by 8.6% year on year to CZK 596.1 billion. Growth in the volume of loans and Total client deposits rose by 12.7% from year earlier to CZK 758.2 billion. assets under man
Slide 6: Selected deals of the first quarter of 2017
Selected deals of the first quarter of 2017 REAL ESTATE REAL ESTATE OLYMPIA BRNO s.r.o. CTPARK GAMMA SRL Term Facility Agreement Real Estate Financing EUR 75,000,000 EUR 22,300,000 Agent, Security Agent and Lender Club Loan Facility 2017 2017 PUBLIC SECTOR MANUFACTURING MĚSTO AŠ FATRA a.s. Municipal
Slide 7: Loans to clients
Loans to clients Solid trend mainly in retail and long-term corporate lending, while short-term financing subdued CZK billion 593.4 595.4 596.1 548.2 548.8 570.8 Gross loans up 8.6% YoY1, +0.1% QoQ to 38.1 38.8 39.5 37.0 37.1 37.7 CZK 596.1 billion 194.9 201.1 207.8 210.1 185.2 189.1 Group housi
Slide 8: Deposits and other assets under management
Deposits and other assets under management Inflow of deposits driven by CZK billion Group deposits economy, supported by 758.2 694.3 708.6 699.4 interventions and Resolution 656.3 679.1 67.0 64.9 64.1 64.1 63.8 68.5 236.0 200.5 208.9 215.8 230.1 Standard Group deposits (excluding repo) grew by 197
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 net profit up on slightly growing revenues and operating costs, net release of provisions Profit and Loss Statement Reported Recurring Change Change (CZK million, unaudited) 1Q 2016 1Q 2017 1Q 2016 1Q 2017 YoY YoY Net interest income 5,234 5,165 -1.3% 5,234 5,
Slide 11: Consolidated statement of financial position
Consolidated statement of financial position Balance sheet reflecting inflow of liquidity into the Czech banking system in 1Q 2017 31 Mar 31 Dec 31 Mar Balance Sheet 2016 2016 2017 YoY Ytd (CZK million, unaudited) Reported Reported Reported Assets 933,291 922,737 1,035,880 11.0% 12.3% Cash and balan
Slide 12: Shareholders’ equity
Shareholders’ equity Shareholders’ equity marginally up year-to-date Contributions to equity in 1Q 2017 Shareholders’ equity rose year to date by 1.4% to CZK 106.8 billion. The generation of net profit was almost offset by lower revaluation gains on cash 4,081 8 104 106,837 105,400 flow hedges and
Slide 13: Financial ratios
Financial ratios Specific Q1 factors affected the indicators Reported Recurring (year-to-date) 31/03/2016 31/12/2016 31/03/2017 31/03/2017 Capital adequacy (reported, comprising only Core Tier 1 16.0% 16.2% 15.7% Total risk weighted assets (CZK billion) 416.7 442.9 462.7 Risk weighted assets for cre
Slide 14: Net interest income
Net interest income NII resilient despite still low interest rates NII -1.3% YoY in 1Q 2017, -2.5% QoQ 5,354 5,234 5,213 5,323 5,299 5,165 349 319 318 322 290 307 NII from loans – supported by volumes. Pressure on spreads in unsecured retail lending 2,640 2,595 2,622 2,716 2,717 2,633 Despite
Slide 15: Net fees and commissions
Net fees and commissions Absorbing effect of the sale of card acquiring in 2016 NFC in 1Q 2017 declined by 8.0% YoY, -2.2% QoQ. 1,700 1,708 1,676 1,599 1,564 Deposit product fees - More rewards paid out in the 259 197 204 201 203 MojeOdměny loyalty programme. Lower number of 185 189 203 178 174
Slide 16: Net profit from financial operations
Net profit from financial operations Huge client-driven flows before end of currency floor 1,626 Net profit from financial operations in 1Q 2017 rose 373 by 43.2% YoY, +27.2% QoQ 297 1,051 826 Clients’ strong currency hedging activity ahead of 774 734 652 739 the CNB’s ending its interventions 4
Slide 17: Operating expenditures
Operating expenditures Good cost control, contribution from HQ restructuring 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Reported OPEX in 1Q 2017 declined 18.5% YoY, 449 178 -10.0% QoQ, due to one-off net gain from the sale and revaluation of KB’s headquarters buildings1 -1,700 -1,692 -1,737 -
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 sound asset quality CZK billion Gross lending 570.8 593.4 595.4 596.1 Loan exposure +8.6% YoY, QoQ +0.1% 548.2 548.8 LUSR exposure ratio down to 3.6% (4% in 1Q 2016) and NPL exposure ratio down to 2.4% 516.3 518.4 540.3 563.2 563.6 565.3 (2.7% in 1Q 2016) driven
Slide 20: Cost of Risk
Cost of Risk Cost of risk at exceptionally low level YtD Cost of Risk significantly decreased to -6 Total Cost of Risk (Year-to-date, in basis points) 71 bps in 1Q 2017 compared to results observed in 64 65 recent quarters 38 21 29 32 30 18 17 Negative Cost of Risk on Corporates at -3 bps 9 (vs.
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 1,653,000 clients (0%) MPSS 487,000 clients (-5%) KBPS 534,000 clients (-2%) 1,626 1,647 1,654 1,653 1,602 1,589 ESSOX 199,000 active clients (-7%) Network
Slide 23: Consolidated income statement – quarterly view
Consolidated income statement – quarterly view Profit and Loss Statement Change Change 1Q 2016 4Q 2016 1Q 2017 YoY QoQ (CZK million, unaudited) Net interest income 5,234 5,299 5,165 -1.3% -2.5% Net fees & commissions 1,700 1,599 1,564 -8.0% -2.2% Income from financial operations 734 826 1,051 43.2%
Slide 24: Recurring P&L – quarterly view
Recurring P&L – quarterly view Profit and Loss Statement 1Q 2016 4Q 2016 1Q 2017 Change Change recurring recurring recurring YoY QoQ (CZK million, unaudited) Net interest income 5,234 5,299 5,165 -1.3% -2.5% Net fees & commissions 1,700 1,599 1,564 -8.0% -2.2% Income from financial operations 734 82
Slide 25: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 1Q 2016 1Q 2017 YoY Modrá pyramida (100%), #2 building savings & loans company Volume of new loans (CZK million) 2,079 3,358 62% Volume of total loans (gross, CZK million) 37,120 39,453 6% Volume of deposits (CZK million) 67,015 63,793 -5% Number of clients 5
Slide 26: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 1Q 2016 1Q 2017 YoY Factoring KB (100%), #1 on the Czech factoring market Factoring turnover (CZK million) 8,107 9,598 18% Volume of total financing (gross, CZK million) 6,205 7,241 17% Average number of FTEs 44 45 3% Komerční pojišťovna (49%), a universal in
Slide 27: Debt securities portfolio in the banking book
Debt securities portfolio in the banking book CZK billion, as of 31 March 2017 Available-for-sale portfolio Held-to-maturity portfolio CZK 39.0 billion CZK 65.3 billion 10.8 7.9 EIB, 1.1 Poland, 7.6 Poland, 0.8 20.1 Romania, 1.9 54.5 7.9 10.8 0.8 Slovakia, 4.1 Slovakia, 3.1 10.2 Czech sovereign Czec
Slide 28: Macroeconomic environment – Czech Republic
Macroeconomic environment – Czech Republic Macroeconomic Indicators 2013 2014 2015 2016 2017* 2018* Real GDP (%, average) -0.5 2.7 4.6 2.3 2.7 2.7 Inflation (%, average) 1.4 0.4 0.3 0.7 2.3 2.3 Household consumption (%, average) 0.5 1.8 3.1 2.9 2.9 2.5 Unemployment (%, av., MLSA meth.) 7.8 7.6 6.4 5
Slide 29: Interest rates evolution
Interest rates evolution (for the period 1 January 2005 – 25 April 2017) 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 2016 2017 Pribor 3M Pribor 6M ČNB REPO Rate IRS 5Y IRS 10Y 29
Slide 30: KB #1 listed Czech bank
KB shares and shareholders KB #1 listed Czech bank Development of KB share price and PX index As of 31 March 2017 (1 October 2001 – 25 April 2017) 500% The Bank had 46,082 shareholders as of the end of 400% the quarter (+1,485 year on year), of which 40,749 were private individuals from the Czech
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