Komercni Banka, a.s. · PSECZ:KOMB
Komercni Banka, a.s — FY2002 Earnings Presentation
26 slides from Komercni Banka, a.s's earnings presentation, Mar 31, 2003
Slide 1: Financial Results as at December 31, 2002
Financial Results as at December 31, 2002 (Audited, International Financial Reporting Standards) Prague - March 31, 2003
Slide 2: Content
CONTENT • FY 2002 Performance – Business Indicators – Financial Performance • Appendix Financial Results as at December 31, 2002 – Prague – March 31, 2003 1
Slide 3: Key Business Indicators
KEY BUSINESS INDICATORS Clients Payment cards - transactions thousand + 17.4% 44,808 • Client base slightly increased, number of KB clients represents 1.26 million of which: 38,164 - Individuals 0.96 million Komerční banka issued 1,244 thousand payment - Corporates 0.30 million cards as of Dec 31, 2
Slide 4: Key Business Indicators: Increasing deposit base
KEY BUSINESS INDICATORS Increasing deposit base Volume of deposits Depository notes (excluding Repo) Term deposits and CZK billion saving deposits Current accounts 326.9 336.0 317.0 312.6 316.3 • + 6.1% growth year-over-year 35.8 35.9 31.9 35.2 39.2 • Changes in the structure of deposits - Continues
Slide 5: Ongoing positive dynamics in retail lending
KEY BUSINESS INDICATORS Ongoing positive dynamics in retail lending Business loans - Work-out bank Volume of loans (gross amount) Business loans - Premier bank CZK billion Mortgage loans Consumer loans 146.5 144.1 139.4 140.8 • Retail loans represent 19% of the loan 138.3 portfolio (increase by 5 p.
Slide 6: Retail loans development - focus
KEY BUSINESS INDICATORS Retail loans development - focus Mortgages Consumer loans Number of mortgages granted during 2002 Number of consumer loans granted during 2002 29,805 +22.6% 24,307 + 59.8% 5,306 3,321 FY 2001 FY 2002 FY 2001 FY 2002 Volume of mortgages granted during 2002 Volume of consumer l
Slide 7: Financial Results and Ratios: Net operating income increased by 12.5%
FINANCIAL RESULTS AND RATIOS Net operating income increased by 12.5% CZK million, unconsolidated Profit and Loss Statement FY 2001 FY 2002 Change 02/01 Net banking income 23,809 22,597 - 5.1% Operating costs -15,065 -12,760 - 15.3% Net operating income 8,744 9,837 + 12.5% Provisions for loan and inv
Slide 8: Net Interest Income
NET INTEREST INCOME Changes in the structure of Net interest income CZK million, unconsolidated Net Interest Income Banks 23,809 12,989 12,447 Customers - 5.1% 22,597 ČKA Securities 5,967 + 24.3% 7,414 • Increase of NII from banks is a result of placing the excess of liquidity on the inter-bank mark
Slide 9: Net Fees and Commissions
NET FEES AND COMMISSIONS Decrease of foreign exchange fees and commissions CZK million, unconsolidated Non-FX Net Fees and Commissions FX foreign payments 23,809 - 5.1% FX cash conversions 22,597 8,394 8,320 • The main contributors in Non FX: - settlements 6,034 + 3.3% 6,232 - account maintenance -
Slide 10: Trading Profits and Other Income
TRADING PROFITS AND OTHER INCOME Satisfactory development of profit from financial operations CZK million, unconsolidated Net profit from financial operations FX operations 23,809 Securities - 5.1% 22,597 1,551 1,426 Interest and commodity Derivatives 439 +124.8% 987 • FX operations positively impac
Slide 11: Operating Costs
OPERATING COSTS Continuous cost savings together with further restructuring CZK million, unconsolidated Administrative expenses Personnel expenses 10,954 Other administrative 10,100 expenses 5,886 • Savings mainly in: - 10.7% - staff reduction 15,065 5,257 - contributions to the Depositary - 15.3% I
Slide 12: Provisions for Loans and Investment Losses
PROVISIONS FOR LOANS AND INVESTMENT LOSSES Release of provisions and reserves boosted KB profit CZK million, unconsolidated Total provisions 1,434 Comments • The release of CZK 1,513 mil. include both release of specific provisions to loans as a result of improving quality of the Bank’s loan portfol
Slide 13: Deferred Income Taxes
DEFERRED INCOME TAXES Deferred income taxes decreased total KB taxes charge Unconsolidated Return to the profitability of the Bank led to first posting of deferred income tax assets in 2002 P/L impact 2002 • Theoretical opening balance (related to previous years) CZK + 1,325 mil. • P/L movement of d
Slide 14: Balance Sheet
BALANCE SHEET Increase of total balance sheet by 4% CZK million, unconsolidated Assets Liabilities and shareholders’ equity 439,753 Change 439,753 Change 421,720 421,720 Cash and balances 14,377 - 21.1% 22,549 - 21.9% 18,211 Amounts due to with central bank banks 28,860 Amounts due from 155,602 199,
Slide 15: Client Portfolio Development
CLIENT PORTFOLIO DEVELOPMENT CZK billion On-balance Sheet Guaranteed portfolio Non-guaranteed portfolio 147.7 146.5 138.3 46.7 30.7 18.7 101.0 115.8 119.6 31.12.2000 31.12.2001 31.12.2002 Off-balance Sheet Guaranteed portfolio Non-guaranteed portfolio 85.1 76.6 69.7 3.1 13.7 6.4 62.9 63.3 82.0 31.12
Slide 16: Loans and Advances to Customers
LOANS AND ADVANCES TO CUSTOMERS Ongoing improvement in quality of the loan book CZK million Client loans Specific and general provisions for loan losses On-balance sheet On-balance sheet 146,466 - 5.5% 138,349 23,769 - 27.7% Total standard 713 and watch loans provisions Specific 17,195 Total standar
Slide 17: Sale of the Portfolio of Non-Performing Loans
SALE OF THE PORTFOLIO OF NON-PERFORMING LOANS Nonmaterial positive impact of the sale on P&L for 2002 • An agreement for the sale of the portfolio of non-performing loans was signed with GE Capital Group on 29 November 2002 and amended by further side agreements. • The portfolio in the nominal value
Slide 18: State Guaranteed Portfolio - Focus
STATE GUARANTEED PORTFOLIO – FOCUS Continuing reduction of non-performing loans covered by the State Guarantee CZK billion 31. 12. 2000 31. 12. 2002 60.9* 4.2 11.3 • Guaranteed portfolio comprises of CZK 18.8 bil. on-balance and CZK 3.0 bil. off-balance sheet assets 20.0 • Total repayments of on-bal
Slide 19: 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% 13.1% Total coverage (as at 31-Dec 2002): USD 75 mil. Provisions and reserves based on a mark-to-model approach. 31.12.2001 31.12
Slide 20: Financial Results and Ratios - Consolidated
FINANCIAL RESULTS AND RATIOS - CONSOLIDATED CZK million Profit and Loss Statement FY 2001 FY 2002 Change 02/01 Net banking income 26,433 25,920 - 1.9% Total operating costs - 18,302 - 15,917 - 13.0% Income from not fully consolidated companies 686 -74 - Provisions for loan and investment losses - 4,
Slide 21: 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% 4 12 65 Factoring KB, a.s. 100% 10 119 2,188 Investiční kapitálová společnost, a.s. 100% 79 247 336 Komercni Finance, B.V. 100% 7 8 6,105 Komerční banka Bratislava, a.s. (SAS)
Slide 22: Content
CONTENT • FY 2002 Performance – Business Indicators – Financial Performance • Appendix Financial Results as at December 31, 2002 – Prague – March 31, 2003 21
Slide 23: Development of KB's Share Price and Index PX50
DEVELOPMENT OF KB’s SHARE PRICE AND INDEX PX50 CZK 2 ,4 0 0 900 2 ,2 0 0 800 2 ,0 0 0 700 1 ,8 0 0 1 ,6 0 0 600 1 ,4 0 0 500 1 ,2 0 0 400 1 ,0 0 0 800 300 600 KB 200 400 PX 50 100 200 0 0 01 01 01 02 02 02 02 02 02 02 02 02 02 02 02 03 03 3 0 0/ 0/ 1/ 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 1/ 2/ 1/ 2/ 2/ /1
Slide 24: Development of Interest Rates
31 /1 2/ 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 0 % 18 1 /0 1/ 0 06 2 /0 2/ 0 25 2 /0 2/ 0 14 2 /0 3/ 0 03 2 /0 4/ 0 22 2 /0 4/ 0 3M Pribor 6M Pribor 13 2 CNB Repo /0 5/ 0 30 2 /0 5/ 0 KB Reference rate 18 2 /0 6/ 0 08 2 /0 7/ 0 25 2 /0 7/ 0 13 2 /0 8/ 0 30 2 /0 8/ 0 18 2 /
Slide 25: Structure of Shareholders
STRUCTURE OF SHAREHOLDERS Major shareholders of Komerční banka, a.s. with over 5% of the share capital as at December 31, 2002 Others 33.38% Société Générale S.A. 60.35% The Bank of New York ADR Department 6.27% Financial Results as at December 31, 2002 – Prague – March 31, 2003 24
Slide 26: 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: