Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — 9M 2013 Earnings Presentation
35 slides from Komercni Banka, A.s's earnings presentation, Nov 7, 2013
Slide 1: Komerční banka Group Financial results as of 30 September 2013
Komerční ní banka Group Financial results as of 30 September 2013 According to International Financial Reporting Standards, consolidated, unaudited Prague, 7 November 2013
Slide 2: Disclaimer
Disclaimer This document contains a number of forward-looking 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.
Slide 3: Agenda
Agenda Business results 4 Financial results 10 Loan Portfolio Quality and Cost of Risk 19 Appendix 23 3
Slide 4: Czech economy
Czech economy Real GDP outlook (YoY, %) The economy exited recession in 2Q 2013 2.3 1.8 1.8 (+0.6% QoQ) and the recovery should continue contributed by industry, construction and good -0.9 -0.9 harvest in agriculture -4.3 Banking market has not observed yet notable acceleration in the volume growth
Slide 5: Key results as of 30 September 2013
Key results as of 30 September 2013 Gross volume of loans to clients expanded by 2.9% to CZK 475.7 billion Client deposits rose by 4.8% to CZK 592.0 billion (excluding repo operations with clients) Net loans-to-deposits deposits ratio at 79.6% (excluding client assets in transformed pension fund) Ba
Slide 6: Business highlights
Business highlights Mortgage portfolio growth reached 8.4% year on year while unsecured consumer lending increased notably in the third quarter at both KB and ESSOX Growth in asset volumes in mutual funds, in life insurance reserves, and pension assets continued, underpinned by KB’s strategic aim to
Slide 7: Lending to clients
Lending to clients CZK billion 469.1 472.3 475.0 475.7 456.2 462.3 49.8 49.3 48.3 46.8 45.2 50.3 Gross loans rose 2.9% YoY, +0.1% QoQ. 128.2 130.5 133.3 134.4 137.3 141.5 Most dynamic were mortgages and export 27.4 27.4 27.5 27.0 27.5 28.0 credits Business loans up 2.5% YoY, of which: 246.2 249.9 25
Slide 8: Deposits and assets under management
Deposits and assets CZK billion By Customers 606.9 609.3 under management 582.4 568.3 579.1 598.7 71.4 71.3 70.8 71.8 71.8 70.9 157.7 157.4 157.3 Group deposits up 4.8% YoY to CZK 592.0 162.6 160.5 156.4 33.2 34.0 34.9 billion, +0.2% QoQ (excluding repos with 31.0 31.7 31.9 clients). Total amounts d
Slide 9: Agenda
Agenda Business results 4 Financial results 10 Loan Portfolio Quality and Cost of Risk 19 Appendix 23 9
Slide 10: Consolidated financial results
Consolidated financial results Profit and Loss Statement 9M 2012 9M 2012 9M 2013 Change Change YoY YoY Reported = (CZK million, unaudited) Reported Recurring Reported Recurring Recurring Net interest income 16,517 16,517 15,879 -3.9% -3.9% Net fees & commissions 5,229 5,376 5,315 1.6% -1.1% Income f
Slide 11: Consolidated statement of financial position
Consolidated statement of financial position 30 Sep 31 Dec 30 Sep Change Change Balance Sheet 2012 2012 2013 YoY YtD (CZK million, unaudited) Assets 771,470 786,836 804,125 4.2% 2.2% Cash and balances with central bank 8,557 28,057 50,280 487.6% 79.2% Amounts due from banks 78,045 64,111 79,369 1.7%
Slide 12: Financial ratios
Financial ratios Key ratios and indicators 30 Sep 31 Dec 30 Sep Change 2012 2012 2013 YoY (year-to-date) Capital adequacy (Basel II) 14.5% 14.7% 16.7% Tier 1 ratio (Basel II) 14.5% 14.7% 16.7% Total capital requirement (CZK billion) 29.6 29.3 28.4 -4.1% Capital requirement for credit risk (CZK billi
Slide 13: Shareholders' equity
Shareholders‘ equity Development year-to-date Total shareholders‘ equity -6,709 6,709 Total shareholders‘ equity as of 31 December 2012 as of 30 September 2013 Shareholders' equity 31/12/2012 1/1/2013 Increase Decrease 30/9/2013 Share capital 19,005 19,005 19,005 Capital and reserve funds 42,181 56,
Slide 14: Net interest income
Net interest income 5,508 5,461 5,452 5,259 5,327 5,293 587 539 526 501 462 419 NII in 9M 2013 down by 3.9% YoY. 3Q down by 0.6% QoQ 2,309 2,347 2,423 2,350 2,434 2,395 NII from loans – up thanks to growth of volumes. Average spread influenced by increased share of relatively lower-spread loans (mor
Slide 15: Net fees and commissions
Net fees and commissions 1,761 1,742 1,725 1,800 1,790 1,671 141 142 176 217 NFC in 9M 2013 up by 1.6% YoY due to low base 134 185 323 222 319 reflecting 2012 pension fund client acquisition 255 337 322 356 costs. NFC in 3Q down by 0.6% QoQ 340 341 331 372 340 142 147 165 Deposit product fees – mark
Slide 16: Net profit from financial operations
Net profit from financial operations 1,228 Net profit from financial operations in 9M 2013 465 down by 30.8% YoY affected by exceptional items 727 729 booked in 2012 624 661 597 332 220 359 309 297 332 3Q 2013 down 9.3% QoQ due to gain from sale 340 of Italian GBs in 2Q, underlying trend stable 431
Slide 17: Operating costs
Operating costs 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 OPEX in 9M 2013 down by 1.7% YoY. 3Q down by 0.8% QoQ -1,671 -1,719 -1,721 -1,634 -1,681 -1,719 Personnel costs in 9M 2013 decreased by 0.6% YoY. Average number of employees down 1.8% GAE dropped by 4.0% YoY -1,190 -1,044 -1,184 -1,128
Slide 18: Agenda
Agenda Business results 4 Financial results 10 Loan Portfolio Quality and Cost of Risk 19 Appendix 23 18
Slide 19: Loan quality
Loan quality CZK billion Gross lending 462.3 469.1 472.3 475.0 475.7 456.2 Loan exposure +2.9% YoY, +0.1% QoQ Share of Standard and Watch loan exposure 417.2 424.8 431.0 434.5 437.0 438.7 stable at 94.2% (94.3% in 2Q 2013) Share of LUSR exposure at 5.8% (5.7% in 2Q 12.8 11.3 11.1 10.4 10.8 9.6 2013)
Slide 20: Cost of risk
Cost of risk Total Cost of Risk development 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 9M 2013 cost of risk stable YoY, 3Q 2013 cost of 44 46 42 60 40 40 38 risk significantly lower by -23.1% QoQ 40 41 40 41 20 31 32 32 YoY total cost of risk flat in 3Q 2013. QoQ 3 25 1 13 18 -3 0 decrease in t
Slide 21: Commercial cost of risk - zoom on client segments
Commercial cost of risk - zoom on client segments KB Group – Corporate Segments 3Q 2013 QoQ decrease in cost of risk on 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 150 Corporates influenced by prudential 29 35 34 9 8 19 50 provisioning of Watch portfolio during 2Q 2013 87 -50 -25 -165 -175 9M Co
Slide 22: Agenda
Agenda Business results 4 Financial results 10 Loan Portfolio Quality and Cost of Risk 19 Appendix 23 22
Slide 23: 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 1,580,000 clients (-2%) MPSS 575,000 clients (-7%) KBPS 563,000 clients (+8%) 1,629 1,620 1,590 1,602 1,602 1,580 ESSOX 274,000 active clients (+1%) Network 398 branches for
Slide 24: Consolidated financial results
Consolidated financial results Profit and Loss Statement Change Change 3Q 2012 2Q 2013 3Q 2013 YoY QoQ (CZK million, unaudited) Net interest income 5,461 5,327 5,293 -3.1% -0.6% Net fees & commissions 1,671 1,800 1,790 7.1% -0.6% Income from financial operations 624 729 661 5.9% -9.3% Other income 4
Slide 25: KB consolidated group
KB consolidated group KB Penzijní Pension Management company for Transformed Fund (pension fund with 563,000 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 9M 2012 9M 2013 YoY MPSS Volume of new loans (CZK million) 3,244 2,422 -25% Volume of total loans (gross, CZK million) 49,848 45,180 -9% Target volume of new contracts (CZK million) 16,563 19,779 19% Volume of deposits (CZK million) 73,836 72,092 -2% A
Slide 27: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 Change 9M2012 9M 2013 YoY Factoring Factoring turnover (CZK million) 13,877 18,749 35% KB Volume of total financing (gross, CZK million) 2,812 3,984 42% Average number of FTEs 40 43 8% KP Newly concluded policies (number) 644,112 591,039 -8% of which in life
Slide 28: 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 100% 10,700 10.7% 81,829 -1.3% 714,888 5.5% - o/w KB branch in Slovakia IFRS 100% 29 -73.1% 18 n.a. 19,993 22.4% ESSOX, s.r.o. IFRS 50.93% 399
Slide 29: Securities portfolio in the banking book
Securities portfolio in the banking book CZK billion Available-for-sale portfolio Held-to-maturity portfolio CZK 137.9 billion CZK 3.3 billion 96.4 3.1 0.2 16.9 1.6 1.0 21.9 Czech sovereign Foreign sovereign Czech sovereign Foreign sovereign Czech financial institutions Foreign financial institution
Slide 30: Foreign sovereign exposure
Foreign sovereign exposure CZK billion 16 6.9 EFSF, 0.5 EIB, 1.4 Poland, 5.6 Slovakia, 9.4 2.0 Poland, 0.1 Slovakia, 1.8 0.2 France, 0.2 Trading book1) Available-for-sale 1) Available Held-to-maturity 2) Measurement at [1] fair value; [2] amortized cost 30
Slide 31: Macroeconomic environment – Czech Republic
Macroeconomic environment – Czech Republic Macroeconomic Indicators 2009 2010 2011 2012 2013* 2014* Real GDP (%, average) -4.3 2.3 1.8 -0.9 -0.9 1.8 Inflation (%, average) 1.0 1.5 1.9 3.3 1.4 0.1 Household consumption (%, average) 0.3 0.9 0.5 -2.1 0.1 1.6 Unemployment (%, av., MLSA meth.) 6.4 7.0 6.
Slide 32: Interest rates evolution
Interest rates evolution (for the period 1 January 2005 – 31 October 2013) 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 01/01/2005 01/01/2006 01/01/2007 01/01/2008 01/01/2009 01/01/2010 01/01/2011 01/01/2012 01/01/2013 Pribor 3M Pribor 6M ČNB REPO Rate IRS 5Y IRS 10Y 32
Slide 33: Development of KB's share price and PX Index
Development of KB‘s share price and PX Index (for the period 1 October 2001 – 31 October 2013) 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 1/10/01 1/10/02 1/10/03 1/10/04 1/10/05 1/10/06 1/10/07 1/10/08 1/10/09 1/10/10 1/10/11 1/10/12 1/10/
Slide 34: KB shareholders
KB shareholders As of 30 September 2013 Shares on registered capital according to excerpt from the Securities centre Others 39.6% Société Générale 60.4% As of 30 September 2013, KB held 238,672 own shares in treasury, representing 0.63% stake on registered capital. 34
Slide 35: Investor Relations
Investor Relations Jakub Černý, erný, Georgina Olegrová, Olegrová Robert Janeček Tel.: +420 955 532 156, 955 532 734, 734 955 532 155 E-mail: mail: investor_relations@kb.cz - Internet: www.kb.cz 35