Komercni Banka, a.s. · PSECZ:KOMB
Komercni Banka, a.s — Q1 2003 Earnings Presentation
25 slides from Komercni Banka, a.s's earnings presentation, Apr 30, 2003
Slide 1: Financial Results as at 31 March 2003
Financial Results as at 31 March 2003 (International Financial Reporting Standards) Prague - 30 April 2003
Slide 2: Content
CONTENT • 1Q 2003 Performance – Business Indicators – Financial Performance • Appendix Financial Results as at 31 March 2003 – Prague – 30 April 2003 1
Slide 3: Key Business Indicators
KEY BUSINESS INDICATORS Clients Payment cards - # of transactions (thousand) • Client base further increased to final 1.27 million 14,557 of which: + 45% - 0.97 million were Individuals (+ 10 thousand in 1Q03) Number of payment cards issued as of 31 March 2003: - 0.30 million were Corporates (+ 2.5
Slide 4: Key Business Indicators: Increasing deposit base
KEY BUSINESS INDICATORS Increasing deposit base Volume of deposits Depository notes Term deposits and saving deposits CZK billion Current accounts 345.9 326.9 336.0 312.6 316.3 36.3 35.9 • Year-on-year increase by 11% 35.8 39.2 35.2 • Changes in the structure of deposits 148.8 135.7 133.6 129.1 132.
Slide 5: Key Business Indicators: Ongoing positive dynamics in retail lending
KEY BUSINESS INDICATORS Ongoing positive dynamics in retail lending Volume of loans (Premier bank) Business loans Mortgage loans gross amount, CZK billion Consumer loans 121.9 123.1 123.6 117.8 118.9 • Year-on-year increase of the Premier Bank portfolio by 5% • Retail loans represent 22% of the Prem
Slide 6: Key Business Indicators: Retail loans - focus
KEY BUSINESS INDICATORS Retail loans - focus Mortgages Consumer loans Number of mortgages granted in a quarter Number of consumer loans granted in a quarter 7,894 8,137 7,759 7,586 6,015 1,670 1,737 1,341 1,376 919 1Q02 2Q02 3Q02 4Q02 1Q03 1Q02 2Q02 3Q02 4Q02 1Q03 Volume of mortgages granted in a qu
Slide 7: Financial Results and Ratios: Net profit increased by 12.3%
FINANCIAL RESULTS AND RATIOS Net profit increased by 12.3% CZK million, unconsolidated Profit and Loss Statement 1Q 2002 1Q 2003 Change 03/02 Net banking income 5,522 5,297 - 4.1% Operating costs -3,542 -2,796 - 21.1% Net operating income 1,980 2,501 + 26.3% Provisions for loan and investment losses
Slide 8: Net Interest Income
NET INTEREST INCOME Continuous increase of inter-bank operations CZK million, unconsolidated Net Interest Income Banks 3,205 5,522 - 4.1% 2,965 Customers 5,297 ČKA Securities 1,517 + 22.3% 1,855 • NII from banks influenced by rising volumes of repo operations • NII from customers decreased due to 88
Slide 9: Net Fees and Commissions
NET FEES AND COMMISSIONS Slight increase in Fees and Commissions CZK million, unconsolidated Non-FX Net Fees and Commissions FX foreign payments 5,522 - 4.1% FX cash conversions 5,297 1,976 2,002 • Non-FX F & C positively influenced by F & C from account maintenance, 1,484 + 3.6% 1,538 loan administ
Slide 10: Trading Profits and Other Income
TRADING PROFITS AND OTHER INCOME CZK million, unconsolidated Net profit from financial operations FX operations 5,522 257 284 Interest and commodity - 4.1% Derivatives 5,297 Securities 186 -1.1% 184 • Profit on securities comprise mainly of unrealised profits on bonds • Profit from derivatives decre
Slide 11: Operating Costs
OPERATING COSTS On-going decrease of personnel expenses CZK million, unconsolidated Administrative expenses Personnel expenses Other administrative 2,510 expenses 2,199 3,542 - 21.1% • Decreasing personnel expenses influenced by further staff reduction 1,372 - 24.3% 1,038 and release of 2002 accrual
Slide 12: Operating Costs Q-on-Q
OPERATING COSTS Operating costs Q-on-Q Q-on-Q Total operating costs Restructuring costs Depreciation and other provisions Other administrative expenses Personnel expenses 3,542 3,268 2,925 3,025 521 384 -3 105 2,796 511 428 432 282 264 333 1,138 1,127 1,162 1,416 1,161 1,372 1,329 1,334 1,222 1,038
Slide 13: Provisions for Loan and Investment Losses
PROVISIONS FOR LOAN AND INVESTMENT LOSSES Cost of risk remained at a low level in the first quarter CZK million, unconsolidated Total provisions 40 Comments • Creation of provisions for loan losses reflected low level of cost of risk • Provisions in the amount of CZK 137 mil. created for the portfol
Slide 14: Balance Sheet
BALANCE SHEET Balance sheet increased by 3.6% CZK million, unconsolidated Assets Liabilities and shareholders’ equity 455,791 Change 455,791 Change 439,753 439,753 Cash and balances 10,412 - 27.6% Amounts due 23,873 + 5.9% with central bank 14,377 to banks 22,549 Amounts due from 199,729 224,935 + 1
Slide 15: Client Portfolio Development
CLIENT PORTFOLIO DEVELOPMENT CZK billion On-balance Sheet Guaranteed portfolio Non-guaranteed portfolio 147.7 146.5 138.3 132.5 46.7 30.7 18.7 14.8 101.0 115.8 119.6 117.7 31.12.2000 31.12.2001 31.12.2002 31.3.2003 Off-balance Sheet 85.1 86.7 76.6 69.7 3.1 2.9 13.7 6.4 62.9 63.3 82.0 83.8 31.12.2000
Slide 16: Loans and Advances to Customers
LOANS AND ADVANCES TO CUSTOMERS Loan portfolio influenced by a transfer of loans to GE CZK million Client loans Specific and general provisions for loan losses On-balance sheet On-balance sheet - 4.2% 138,349 132,491 17,195 - 17.6% Total standard and watch loans 664 provisions 14,162 Specific - 5.3%
Slide 17: State Guaranteed Portfolio – Focus
STATE GUARANTEED PORTFOLIO – FOCUS CZK billion 31. 12. 2000 31. 3. 2003 60.9* 4.2 11.3 • Guaranteed portfolio comprises: CZK 14.8 bil. on-balance and CZK 2.9 bil. off-balance sheet assets 20.0 • Total repayments of receivables amounted to CZK 20.9 bil., total sales and write-offs to CZK 16.6 bil. 35
Slide 18: CDO Portfolio
CDO PORTFOLIO Increased coverage of the portfolio Specific provisions / Purchase Price Date of acquisition: September 2000 - April 2001 Purchase price: USD 426 mil. 17.6% 18.8% Total coverage (as at 31 March 2003): USD 80 mil. Provisions and reserves based on a mark-to-model approach. 31.12.2002 31.
Slide 19: Financial Results and Ratios - Consolidated
FINANCIAL RESULTS AND RATIOS - CONSOLIDATED CZK million Profit and Loss Statement 1Q 2002 1Q 2003 Change 03/02 Net banking income 6,271 6,353 + 1.3% Total operating costs - 4,270 -3,724 - 12.8% Income from not fully consolidated companies 21 38 + 81.0% Provisions for loan and investment losses 150 -
Slide 20: Subsidiary and Associated Undertakings Results
SUBSIDIARY AND ASSOCIATED UNDERTAKINGS RESULTS CZK mil., CAS/SAS Share of KB Profit after tax Equity Assets ASIS, a.s. 100% 3 14 42 Factoring KB, a.s. 100% 6 124 2,074 Investiční kapitálová společnost, a.s. 100% 37 284 247 Komercni Finance, B.V. 100% 1 9 6,073 Komerční banka Bratislava, a.s. (SAS) 1
Slide 21: Content
CONTENT • 1Q 2003 Performance – Business Indicators – Financial Performance • Appendix Financial Results as at 31 March 2003 – Prague – 30 April 2003 20
Slide 22: Development of KB's Share Price and Index PX50
DEVELOPMENT OF KB’s SHARE PRICE AND INDEX PX50 CZK 2,400 900 2,200 800 2,000 700 1,800 1,600 600 1,400 500 1,200 400 1,000 800 300 600 KB 200 400 PX 50 100 200 0 0 3 01 01 01 02 02 02 02 02 02 02 02 02 02 02 02 03 03 03 0 3/ 0/ 1/ 2/ 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 1/ 2/ 1/ 2/ 3/ /0 /1 /1 /1 /0 /0 /0
Slide 23: Development of Interest Rates
DEVELOPMENT OF INTEREST RATES % 5 .0 0 4 .7 5 4 .5 0 4 .2 5 4 .0 0 3 .7 5 3 .5 0 C NB R e p o 3 .2 5 3 M P rib o r 6 M P rib o r 3 .0 0 K B R e fe re nc e rate 2 .7 5 2 .5 0 2 .2 5 2 .0 0 31-D ec -01 31-Mar-02 30-Jun-02 30-S ep-02 31-D ec -02 31-Mar-03 Financial Results as at 31 March 2003 – Prague
Slide 24: Structure of Shareholders
STRUCTURE OF SHAREHOLDERS Major shareholders of Komerční banka, a. s. with over 5% of the share capital as at 31 March 2003 Number of shares outstanding - 38 million Others 33.55% Société Générale S.A. 60.35% The Bank of New York ADR Department 6.10% Financial Results as at 31 March 2003 – Prague –
Slide 25: Contacts: Investor Relations
CONTACTS Investor Relations Ladislav Šilha Head of Investor Relations Telephone: +420 222 432 155 E-mail: ladislav_silha@kb.cz Pavla Adamová Ilona Katzová Investor Relations Officer Investor Relations Officer Telephone: +420 222 432 734 Telephone: +420 222 432 156 E-mail: pavla_adamova@kb.cz E-mail: