Komercni Banka, a.s. · PSECZ:KOMB
Komercni Banka, a.s — Q1 2005 Earnings Presentation
34 slides from Komercni Banka, a.s's earnings presentation, Apr 29, 2005
Slide 1: Financial Results as at 31 March 2005
JJ Mois Année Financial Results as at 31 March 2005 (International Financial Reporting Standards) Prague - 29 April 2005
Slide 2: Highlights of 1Q 2005: Business performance on rise
Highlights of 1Q 2005 Business performance on rise As of 31 March 2005, year-on-year comparison • Net number of KB clients increased by 86,000 (i.e. 6%) to 1,421,000* of which 1,139,000 are individual clients • 927,000 active products of direct banking channels (i.e. +30%) • Outstanding mortgages to
Slide 3: Highlights of 1Q 2005: Cost / Income ratio at 50%
Highlights of 1Q 2005 Cost / Income ratio at 50% As of 31 March 2005, year-on-year comparison • Net banking income grew by 5% to CZK 5.6 billion, of which: • Net interest income grew by 15% to CZK 3.3 billion • Non-FX fees and commissions increased by 4% • As a result of a strict cost management, to
Slide 4: New and innovated services of KB
Expanding offer New and innovated services of KB Komerční banka launches a completely new business credit card. This is the first credit card on the Czech market intended exclusively for firms and entrepreneurs, who will thus have additional source of funding of their activities. Komerční banka carr
Slide 5: Content
Content Business Performance Financial Performance Loan Portfolio Development Appendix Komerční banka 4
Slide 6: 17% growth in volume of the loan portfolio
Loan portfolio 17% growth in volume of the loan portfolio Individuals Volume of loans SME Corporates CZK billion, Gross amount, without transferred loans Other + 16.8% 164.7 157.8 151.0 141.0 143.7 43.9 27% ■ Year-on-year growth of the loan portfolio 38.2 41.6 33.1 35.6 by 16.8% ■ Total mortgage loa
Slide 7: Solid and stable deposit base
Clients’ deposits Solid and stable deposit base Volume of primary client deposits Individuals SME CZK billion Corporates Other + 0.3% 345.5 351.5 349.2 352.2 346.6 ■ Year-on-year stable depositary base 127.7 128.0 127.9 ■ Current accounts represent 58% share 127.6 128.7 of total primary deposits rea
Slide 8: Strong retail lending
Retail lending Strong retail lending Mortgages to Individuals Consumer loans Loans to Small Businesses Total volume outstanding in CZK mil. Total volume outstanding in CZK mil. Total volume outstanding in CZK mil. 33,150 + 39% 23,893 + 17% 10,734 + 48% 7,703 9,161 5,215 31. 3. 2004 31. 3. 2005 31. 3
Slide 9: Continuous improvement of penetration ratios
Penetration of products Continuous Improvement of penetration ratios 31. 3. 2004 31. 3. 2005 YoY Change Cross-selling ratio* Individuals 4.11 4.59 +12% Penetration ratio – Individuals** Packages 54.6 64.8 + 19% Mortgages 2.2 2.7 + 23% Consumer loans 8.7 10.0 + 15% Payment cards 64.3 66.9 + 4% Penetr
Slide 10: Content
Content Business Performance Financial Performance Loan Portfolio Development Appendix Komerční banka 9
Slide 11: Growth of Net banking income by 5.2%
Financial Results of KB Growth of Net banking income by 5.2% Profit and Loss Statement 1Q 2004 1Q 2005 Change CZK million 05/04 Net banking income 5,293 5,568 + 5.2% Operating costs -2,807 -2,784 - 0.8% Net operating income 2,486 2,784 + 12.0% Provisions for loan and investment losses -254 -179 - 29
Slide 12: Net interest income – driver of revenues
Net Interest Income Net interest income – driver of revenues CZK million, unconsolidated Net Interest Income Net Banking Income Other NII from loans + 5.2% 3,277 5,568 NII from deposits 5,293 2,856 +78.7% 327 183 • YoY significant increase by 14.7% impacted by growing lending business 850 + 9.8% 933
Slide 13: Non-FX fee income up by 4%
Net Fees and Commissions Non-FX fee income up by 4% CZK million, unconsolidated Net Fees and Commissions Net Banking Income Non-FX 2,080 FX clean payments + 5.2% 2,057 5,568 FX cash conversions 5,293 • Strong growth in loan fees in line with growing lending business • Solid growth in payment card fe
Slide 14: Trading profits mainly from client operations
Trading Profits and Other Income Trading profits mainly from client operations CZK million, unconsolidated Net Profit from Financial Operations Net Banking Income FX operations Securities and security + 5.2% derivatives 5,568 348 Interest and Commodity -44.8% Derivatives 5,293 192 171 • Client spot
Slide 15: Total costs under control
Operating Costs Total costs under control CZK million, unconsolidated Personnel Costs Operating Costs • Release of over accruals of bonuses significantly higher in 2004; without this 1,154 +0.3% 1,157 the personnel costs would have decreased by 7.4% - 0.8% • Number of employees stabilized, no 2,807
Slide 16: Operating costs Q-on-Q development
Operating Costs Operating costs Q-on-Q development CZK million, unconsolidated Depreciation, impairment and disposal of fixed assets General administrative expenses Personnel expenses 3,146 2,995 2,843 2,807 2,784 496 436 404 373 425 1,310 1,190 1,503 1,281 1,202 1,154 1,249 1,249 1,147 1,157 1Q 200
Slide 17: Cost of risk, Profit from subsidiaries
Cost of risk, Profit from subsidiaries CZK million, unconsolidated Cost of Risk Impairment of securities Provisions for loan losses Comments Provisions for other risk expenses • Cost of risk at 17 bp mainly resulting from increasing quality of large corporate -253 -29.2% -179 clients. 9 • Neutralizi
Slide 18: Balance Sheet
Balance Sheet Assets Liabilities CZK million, unconsolidated Change Change 448,294 448,134 448,294 448,134 Cash and balances 10,025 14,870 + 48.3% Amounts due - 9.2% 18,548 16,837 with central bank to banks Amounts due from 231,361 220,555 - 4.7% banks Amounts due 358,825 349,763 - 2.5% to customers
Slide 19: Shareholders Equity: Development since the end of 2004
Shareholders Equity Development since the end of 2004 CZK million, unconsolidated Total shareholder’s equity Total shareholder’s equity as at 31 December 2004: + 3,419 as at 31 March 2005: 43,578 46,996 Shareholders’ equity 31. 12. 2004 1. 1. 2005 Increase Decrease 31. 3. 2005 Share capital 19,005 1
Slide 20: Content
Content Business Performance Financial Performance Loan Portfolio Development Appendix Komerční banka 19
Slide 21: Quality of the loan portfolio under control
Client loan portfolio Quality of the loan portfolio under control CZK million, unconsolidated Client loans, On-balance sheet Specific provisions Gross amount, without transferred loans +4.4% 164,702 157,734 + 4.6% 5,595 5,348 Standard loans 131,712 + 5.4% 138,805 Total standard and watch loans 517 -
Slide 22: Partial sales of CDOs
CDO portfolio Partial sales of CDOs As of 31 March 2005 Specific provisions / Invested amount Date of acquisition: September 2000 - April 2001 20.8% 21.0% Initial invested amount: USD 426 mil. Invested amount as at 31. 3. 2005: USD 310 mil. Total coverage (as at 31. 3. 2005): USD 65 mil. Provisions
Slide 23: Content
Content Business Performance Financial Performance Loan Portfolio Development Appendix Komerční banka 22
Slide 24: Financial Results and Ratios (KB Group)
Financial Results of KB Group Financial Results and Ratios Profit and Loss Statement 1Q 2004 1Q 2005 Change CZK million 05/04 Net banking income 5,680 5,875 + 3.4% Operating costs -3,091 -3,040 - 1.6% Income from not fully consolidated companies and exclusion of subsidiaries from consolidation 605 4
Slide 25: Subsidiary and associated undertakings results
Financial Results of KB Group Subsidiary and associated undertakings results As at 31 March 2005, CZK mil., CAS/SAS/IFRS Share of KB Profit after tax Equity Assets ASIS, a.s.* 100% NA NA NA ESSOX, s.r.o. (IFRS) 51% -15 134 1,430 Factoring KB, a.s. 100% 6 151 3,419 Investiční kapitálová společnost, a
Slide 26: Continuous dynamics in number of KB clients
KB Clients and Network Continuous dynamics in number of KB clients as at 31 March 2005 1,421,000 clients* - 1,139,000 individuals and 282,000 corporates - YonY increase in number of clients by 85,000 (+6%) Network - 337 points of sale for retail clients - 37 business centres for medium enterpris
Slide 27: Sales of key products
Products for Individuals and Small Businesses Sales of key products Financial Packages 31. 3. 2004 31. 3. 2005 YoY Change PACKAGES FOR 495,793 642,848 + 30% INDIVIDUALS packages packages GAUDEAMUS 82,330 104,488 + 27% package for young clients packages packages 55,222 104,819 + 90% CHILD ACCOUNT pac
Slide 28: Success of card business
Payment cards Success of card business 31. 3. 2004 31. 3. 2005 YoY Change Debit cards - active 1,071,261 1,248,660 +17% Credit cards - active 41,909 70,652 +69% Number of POS (points of sales using 10,478 13,329 +27% electronic device) 1Q 2004 1Q 2005 Number of transactions via 18,554 21,196 +14% pa
Slide 29: Co-operation within KB/SG Group and Strategic Partnerships
Cross-selling activities Co-operation within KB/SG Group and Strategic Partnerships Provided in 1Q 2004 1Q 2005 Change 05/04 co-operation with: Life insurance Vital (number of sold policies through KB) Komerční pojišťovna 12,259 10,802 - 12% Non-life insurance Allianz (number of sold policies throug
Slide 30: Macroeconomic Environment: Czech Republic
Macroeconomic Environment Czech Republic Macroeconomic indicators 2002 2003 2004 2005* GDP (%) + 1.5 + 3.7 + 4.0 + 4.0 Inflation (%) + 1.8 + 0.1 + 2.8 + 1.5 Households income (%) + 6.4 + 4.8 + 4.9 + 5.0 M2 (%) + 3.5 + 6.9 + 4.4 + 6.0 3M PRIBOR (%) 3.6 2.3 2.4 2.2 Potential of the market Change 03/02
Slide 31: Interest Rates Evolution
Market Interest Rates Interest Rates Evolution 4,95% 4,45% 3,95% 3,45% 2,95% 2,45% 1,95% 31.12.01 31.3.02 30.6.02 30.9.02 31.12.02 31.3.03 30.6.03 30.9.03 31.12.03 31.3.04 30.6.04 30.9.04 31.12.04 31.3.05 Pribor 3M Pribor 6M KB Reference Rate ČNB REPO Komerční banka 30
Slide 32: Development of KB's share price and Index PX50
KB Share price Development of KB’s share price and Index PX50 CZK 1 300 3 700 1 200 3 500 1 100 3 300 1 000 3 100 900 2 900 2 700 800 2 500 700 2 300 600 2 100 500 1 900 400 1 700 300 31.12.02 31.3.03 30.6.03 30.9.03 31.12.03 31.3.04 30.6.04 30.9.04 31.12.04 31.3.05 KB PX 50 Komerční banka 31
Slide 33: Structure of Shareholders
KB Shareholders Structure of Shareholders Major shareholders of Komerční banka, a. s. with over 5% of the share capital as at 31 March 2005 Number of shares outstanding - 38 million Others Société Générale S.A. 34.54% 60.35% The Bank of New York ADR Department 5.11% Komerční banka 32
Slide 34: Investor Relations - Contacts
Contacts Investor Relations - Contacts ILONA KATZOVÁ MARTIN SKOUMAL Head of Investor Relations Investor Relations Phone: +420-222 432 156 Phone: +420-222 432 155 Email: ilona_katzova@kb.cz Email: martin_skoumal@kb.cz Komerční banka Na Příkopě 33 P.O.Box 839 114 07 Prague 1 Czech Republic http://www.