Komercni Banka, A.s. · PSECZ:KOMB
Komercni Banka, A.s — FY2015 Earnings Presentation
34 slides from Komercni Banka, A.s's earnings presentation, Feb 11, 2016
Slide 1: Komerční banka Group Financial results as of 31 December 2015
Komerční banka Group Financial results as of 31 December 2015 According to International Financial Reporting Standards, consolidated, unaudited Prague, 11 February 2016
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 Strong GDP growth driven by domestic demand, exceptional boost from EU funds and lower fuel prices Czech GDP in 3Q15 +4.7% YoY, +0.7% QoQ Real GDP outlook (YoY, %) In 2015, retail sales rose 7.6%, industrial production +4.4%, construction +5.5% YoY 4.5 Strong investment
Slide 5: Komerční banka in the fourth quarter 2015
Komerční banka in the fourth quarter 2015 KB introduced a new generation of mobile banking for businesses, featuring multi-layer authorisation of transactions Building pillars of Clients may newly access mobile banking via fingerprints with Touch ID future growth KB and SGEF supports financing of st
Slide 6: Selected deals of the fourth quarter of 2015
Selected deals of the fourth quarter of 2015 6
Slide 7: Successful growth of loan portfolio
Loans to clients Successful growth of loan portfolio CZK billion 534.0 548.2 513.4 513.7 519.4 Gross loans up 6.8% YoY*, +2.7% QoQ 494.7 37.0 38.3 37.5 37.0 36.7 39.6 Group housing loans +10.6% YoY. Growth in 179.1 185.0 158.0 162.5 166.4 172.8 mortgage lending accelerated to +13.9% YoY (to 28.6 28.
Slide 8: Reasonable deposit growth
Deposits and other assets under management Group deposits Reasonable deposit growth CZK billion 661.7 669.3 666.4 640.7 659.5 655.2 72.4 72.1 70.1 69.3 68.5 71.8 Total amounts due to clients +0.7% YoY. Standard 172.9 178.4 181.1 185.6 189.6 197.4 Group deposits (excluding repo) grew by +3.3% YoY to
Slide 9: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 20 Appendix 23 9
Slide 10: Net profit almost stable despite pressure on margins
Consolidated income statement Net profit almost stable despite pressure on margins Change Change Profit and Loss Statement FY 2014 FY 2014 FY 2015 YoY YoY (CZK million, unaudited) Reported Pro forma Reported Like-for-like * Net interest income 21,423 20,595 20,456 -4.5% -0.7% Net fees & commissions
Slide 11: Optimisation of balance sheet through decrease of liabilities to financial markets
Consolidated statement of financial position Optimisation of balance sheet through decrease of liabilities to financial markets 31 Dec 31 Dec 31 Dec Change Change Balance Sheet 2014 2014 2015 YoY YoY (CZK million, unaudited) Reported Pro forma Reported Reported Like-for-like* Assets 953,261 911,829
Slide 12: Smaller equity due to revaluation and amortisation of hedges
Shareholders’ equity Smaller equity due to revaluation and amortisation of hedges Development year-to-date Total shareholders’ equity -1,777 Total shareholders’ equity 1 as of 31 December 2014 as of 31 December 2015 1 31/12/2014 1/1/2015 Increase Decrease 31/12/2015 Share capital 19,005 19,005 19,00
Slide 13: Capital and liquidity remains solid
Financial ratios Capital and liquidity remains solid Key ratios and indicators 31 Dec 31 Dec Change 2014 2015 YoY (year-to-date) 1 Capital adequacy 16.4% 16.3% 1 Tier 1 ratio 16.4% 16.3% Total risk weighted assets (CZK billion) 384.2 407.6 6.1% Risk weighted assets for credit risk (CZK billion) 319.
Slide 14: Elevated dividend payout ratio maintained
Dividend proposal Elevated dividend payout ratio maintained Out of KB’s attributable net income for 2015, Board of DPS in 2011-2015 (Gross, in CZK) Directors proposed to pay in dividends CZK 11,783 million, or CZK 310 per share The proposed amounts would represent a dividend payout of 92.4% from the
Slide 15: Income maintained thanks to rise in lending
Net interest income Income maintained thanks to rise in lending NII adjusted for impact of deconsolidation of 5,185 5,200 5,126 5,097 5,108 5,125 Transformed Fund down -0.7% in FY 2015, in 4Q 434 466 467 413 396 349 2015 increased by 0.3% QoQ 2,450 2,493 2,500 2,533 2,569 2,640 NII from loans – risi
Slide 16: Stabilising fees from basic services
Net fees and commissions Stabilising fees from basic services Like-for-like NFC in FY 2015 declined by 1.8% YoY, 1,733 1,791 1,787 1,762 1,699 1,708 4Q15 up 3.2% QoQ 185 196 248 218 212 219 253 229 218 209 Deposit product fees – stabilising. QoQ decline 236 218 292 296 279 274 affected by seasonally
Slide 17: Demand for hedging benefits from strong economy
Net profit from financial operations Demand for hedging benefits from strong economy 774 Net profit from financial operations in FY 2015 increased by 9.7% YoY, in 4Q 2015 up by 31.4% 646 658 660 589 QoQ, influenced by positive CVA adjustment 587 494 reflecting changes in market rates and additional
Slide 18: Costs under control
Operating expenditures Costs under control 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 OPEX in FY 2015 increased by 2.9% YoY. Excluding one-off charge for buildings (see below) OPEX was down 0.3% YoY. 4Q15 up 9.4% QoQ, significantly -1,733 -1,717 -1,677 -1,696 -1,720 -1,700 affected by one-off i
Slide 19: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 20 Appendix 23 19
Slide 20: Exposure growth with persisting good loan quality
Loan portfolio quality Exposure growth with persisting good loan quality Gross lending CZK billion 548.2 Loan exposure +6.8% YoY, QoQ +2.7% 519.4 534.0 513.4 513.7 494.7 LUSR exposure down to 4.2% (5.2% in 2014) and NPL exposure down to 2.8% (3.9% in 477.0 477.0 483.9 500.4 516.3 2014) driven by suc
Slide 21: 2015 cost of risk at satisfactory level
Cost of Risk 2015 cost of risk at satisfactory level Cost of Risk in FY 2015 -17.1% YoY, 4Q 2015 Total Cost of Risk (Year-to-date, in basis points) +95.4% QoQ 36 34 30 Cost of Risk decreased to 21 bps in FY 2015 (vs. 14 26 16 21 26 bps in FY 2014) 22 11 18 7 18 8 5 9 Very low Retail Cost of Risk dri
Slide 22: Agenda
Agenda Business results 4 Financial results 10 Loan portfolio quality and cost of risk 20 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 2.4 million clients, of which KB bank 1,647,000 clients (+1%) MPSS 519,000 clients (-6%) KBPS 545,000 clients (-2%) 1,590 1,602 1,602 1,589 1,626 1,647 ESSOX 219,000 active clients (-20%) Network 396 branches for
Slide 24: Consolidated income statement – reported and like-for-like
Consolidated income statement – reported and like-for-like Change YoY Change Profit and Loss Statement 4Q 2014 4Q 2014 3Q 2015 4Q 2015 YoY Like-for- QoQ (CZK million, unaudited) Reported Pro forma Reported Reported Reported like Reported Net interest income 5,414 5,200 5,108 5,125 -5.3% -1.4% 0.3% N
Slide 25: KB consolidated group
KB consolidated group KB Penzijní Pension Management company for Transformed Fund (pension fund with 545,000 clients) and for společnost insurance new pension funds in 2nd and 3rd pillars of the Czech pension system (100%) Modrá pyramida Building #3 largest building savings bank according to loan vo
Slide 26: Business performance of subsidiaries 1/2
Business performance of subsidiaries 1/2 Change FY 2014 FY 2015 YoY MPSS Volume of new loans (CZK million) 3,441 6,298 83% Volume of total loans (gross, CZK million) 38,294 36,980 -3% Volume of deposits (CZK million) 72,396 68,547 -5% Number of clients 554,309 519,297 -6% Average number of FTEs 339
Slide 27: Business performance of subsidiaries 2/2
Business performance of subsidiaries 2/2 Change FY 2014 FY 2015 YoY Factoring Factoring turnover (CZK million) 34,114 35,480 4% KB Volume of total financing (gross, CZK million) 6,229 6,100 -2% Average number of FTEs 42 44 3% KP Volume of technical reserves (CZK million) 42,610 44,788 5% Premium wri
Slide 28: Debt securities portfolio in the banking book
Debt securities portfolio in the banking book As of 31 December 2015 CZK billion Available-for-sale portfolio Held-to-maturity portfolio CZK 41.2 billion CZK 67.1 billion 56.2 20.4 7.9 0.8 10.9 12.1 Czech sovereign Foreign sovereign Czech sovereign Foreign sovereign Czech financial institutions Fore
Slide 29: Foreign sovereign exposure
Foreign sovereign exposure As of 31 December 2015 10.9 CZK billion 7.9 EIB, 1.2 Poland, 5.9 Poland, 0.8 Romania, 1.9 2.0 EIB, 0.1 Slovakia, 4.1 Slovakia, 4.9 Slovakia, 2.0 Trading book 1) Available-for-sale 1) Held-to-maturity 2) Measurement at [1] fair value; [2] amortised cost 29
Slide 30: Macroeconomic environment – Czech Republic
Macroeconomic environment – Czech Republic Macroeconomic Indicators 2011 2012 2013 2014 2015* 2016* Real GDP (%, average) 2.0 -0.8 -0.5 2.0 4.5 2.6 Inflation (%, average) 1.9 3.3 1.4 0.4 0.3 0.9 Household consumption (%, average) 0.3 -1.5 0.7 1.5 2.9 2.7 Unemployment (%, av., MLSA meth.) 6.6 6.8 7.8
Slide 31: Interest rates evolution
Interest rates evolution (for the period 1 January 2005 – 4 February 2016) 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 Pribor 3M Pribor 6M ČNB REPO Rate IRS 5Y IRS 10Y 31
Slide 32: Development of KB’s share price and PX Index
Development of KB’s share price and PX Index (for the period 1 October 2001 – 4 February 2016) 500% 400% 300% 200% 100% 0% 2001 2003 2004 2005 2006 2008 2009 2010 2011 2013 2014 2015 KB PX index 32
Slide 33: KB shareholders
KB shareholders As of 31 December 2015 The number of shareholders comprised 45,118 corporate entities and private individuals. Of the Bank’s total share capital of CZK 19,004,926,000 divided into 38,009,852 shares with a nominal value of CZK 500 each, Société Générale S.A. holds 60.35%. Others 39.6%
Slide 34: 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 34