Komercni Banka, a.s. · PSECZ:KOMB
Komercni Banka, a.s — Q3 2003 Earnings Presentation
36 slides from Komercni Banka, a.s's earnings presentation, Oct 31, 2003
Slide 1: Financial Results as at 30 September 2003
Financial Results as at 30 September 2003 (International Financial Reporting Standards) Prague - 31 October 2003
Slide 2: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Financial Results as at 30 September 2003 – Prague – 31 October 2003 1
Slide 3: Number of Clients
NUMBER OF CLIENTS Increase of retail clients continues Thousands Individuals Y-on-Y Increase Entrepreneurs and Corporates + 39 thousands clients 1,274 1,279 1,290 1,251 1,262 954 965 974 980 992 297 297 300 299 298 September 2002 December 2002 March 2003 June 2003 September 2003 Financial Results as
Slide 4: Direct Banking
DIRECT BANKING Share in the total client base increased to 44% Guaranteed Payment Y-on-Y Increase PC Banking + 63% 567,315 Internet Banking 507,064 23,786 Phone Banking 21,491 447,871 23,616 21,385 116,028 392,295 23,192 22,359 101,271 347,575 22,246 15,640 23,402 88,442 30,357 72,671 59,651 241,927
Slide 5: Sales Network for All Segments
SALES NETWORK FOR ALL SEGMENTS Individuals Medium & Enterprises Small and Corporates Businesses Municipalities 322 39 8 Points MEM Business Corporate Business of Sales Centers Centers (including 40 regional branches) Number of ATMs grew by 58 to the total of 498 since the end of 2002 Financial Resul
Slide 6: Key Products for Individuals
KEY PRODUCTS FOR INDIVIDUALS Continuous increase of active packages in 2003 162,587 IDEAL packages 130,870 PERFEKT KONTO packages 449,440 56,730 total packages EXPRESS KONTO representing 45% of packages individual clients 24,109 A-KONTO packages 75,144 GAUDEAMUS packages CZK 1,985 mil. VITAL of prem
Slide 7: Loans to Individuals
LOANS TO INDIVIDUALS Continuous positive trend Mortgages Consumer loans Number of mortgages granted in 1–3Q of the year Number of consumer loans granted in 1-3Q of the year + 14% 25,135 + 68% 5,593 22,050 3,337 1-3Q 2002 1-3Q 2003 1-3Q 2002 1-3Q 2003 Volume of mortgages granted in 1-3Q of the year V
Slide 8: New Products for Individuals
NEW PRODUCTS FOR INDIVIDUALS Further widening of the services CHILDREN’S New saving account for children up ACCOUNT to 15 years –No fees for the account maintenance –Attractive interest rate Cash loan to the current account PERFECT LOAN –Non-specific purpose loan up to CZK 150,000 –No fees for the l
Slide 9: Key Products for Small Businesses
KEY PRODUCTS FOR SMALL BUSINESSES Number of active packages more than doubled last 3 months 19,293 EFEKT packages 5,430 KOMFORT packages 28,863 total packages Increase by 105% compared to the 509 end of June 2003 EXCELENT packages 3,631 OPTIMUM MEDICUM packages 1,509 Profi loans PROFI loan 5,108 loa
Slide 10: Loans to Small Businesses
LOANS TO SMALL BUSINESSES Positive result of the simplified granting process Number of granted loans to small businesses Volume of granted loans to small businesses Profi loans* CZK mil. Profi loans* Other Business loans Other Business loans 3,377 + 154% 740 2,878 + 241% 1,558 1,331 2,637 844 1,320
Slide 11: Payment Cards
PAYMENT CARDS Continuous increase in the number of transactions NUMBER OF ACTIVE CARDS NUMBER OF MERCHANTS NUMBER OF ISSUED CARDS NUMBER OF POS + 21% + 4% + 26% + 13% By date Active cards (th.) Issued cards (th.) Merchants POS December 2001 662 972 17,098 6,019 December 2002 796 1,244 18,099 8,480 S
Slide 12: Individuals and Small Businesses
INDIVIDUALS AND SMALL BUSINESSES High double-digit growth of penetration ratios Penetration ratio* 31.12. 2002 30.9. 2003 Change 03/02 Individuals PACKAGES 27.61 45.31 + 64.1% MORTGAGES 1.55 2.02 + 30.3% CONSUMER LOANS 6.75 7.82 + 15.9% PAYMENT CARDS 54.52 64.25 + 17.8% Small businesses PACKAGES 0.4
Slide 13: Deposits
DEPOSITS Influence of decreasing interest rates Volume of deposits Loans from customers (repo transactions excluded) Term deposits and saving accounts CZK billion Current accounts 345.9 344.0 326.9 335.6 329.2 36.3 29.8 35.5 33.4 • Year-on-year increase by 5% 35.8 • Current accounts make up 59% of t
Slide 14: Loan Portfolio
LOAN PORTFOLIO Year-on-year increase by 5% Business loans Volume of loans (Premier bank) Mortgage loans gross amount, CZK billion Consumer loans Y-on-Y increase + 5% 127.4 123.1 123.6 123.0 121.9 • Year-on-year increase of the Premier Bank portfolio by 5% • Retail loans represent 25% of the 97.9 97.
Slide 15: Number of Employees - FTE
NUMBER OF EMPLOYEES - FTE Continuous decrease in number of employees Y-on-Y decrease by 8% 9,323 9,034 9,020 8,981 8,603 September 2002 December 2002 March 2003 June 2003 September 2003 Note: Figures include employees of ASIS and Reflexim reintegrated into KB during 2H 2002 and 1H 2003. Financial Re
Slide 16: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Financial Results as at 30 September 2003 – Prague – 31 October 2003 15
Slide 17: Financial Results and Ratios
FINANCIAL RESULTS AND RATIOS Increase in Profit before income taxes by 14% CZK million, unconsolidated Profit and Loss Statement 1-3Q 2002 1-3Q 2003 Change 03/02 Net banking income 17,181 16,564 - 3.6% Operating costs -9,735 -8,505 - 12.6% Net operating income 7,446 8,059 + 8.2% Provisions for loan
Slide 18: Net Interest Income
NET INTEREST INCOME Net interest income stabilised on quarterly basis CZK million, unconsolidated Net Banking Income Net Interest Income Banks Customers - 3.6% 9,509 17,181 8,902 ČKA 16,564 Securities • Year on year comparison affected by 5,376 - 2.9% 5,219 decrease of market interest rates • NII fr
Slide 19: Net Fees and Commissions
NET FEES AND COMMISSIONS Increase in Net fees and commissions CZK million, unconsolidated Net Banking Income Net Fees and Commissions Non-FX 6,408 FX foreign payments - 3.6% 17,181 6,134 FX cash conversions 16,564 • Non-FX F&C comprise mainly fees for settlements, account maintenance and loan admini
Slide 20: Trading Profits and Other Income
TRADING PROFITS AND OTHER INCOME CZK million, unconsolidated Net Banking Income Net profit from financial operations FX operations Interest and Commodity - 3.6% 1,214 Derivatives 17,181 Securities 16,564 • Profit from FX operations includes 860 re-pricing of foreign currency assets 790 and liabiliti
Slide 21: Operating Costs
OPERATING COSTS Significant reduction of total costs CZK million, unconsolidated Operating Costs Administrative expenses Personnel expenses 7,462 Other administrative 6,969 expenses • Decrease of personnel expenses 4,035 driven mainly by staff reduction and - 9.3% 3,661 9,735 - 12.6% release of an a
Slide 22: Operating Costs Q-on-Q
OPERATING COSTS Operating costs Q-on-Q CZK million, unconsolidated Restructuring costs Q-on-Q Operating Costs Depreciation and other provisions Other administrative expenses Personnel expenses 3,542 3,268 2,925 3,025 3,031 521 2,796 384 2,678 -3 105 235 511 428 432 282 264 0 377 333 327 1,138 1,127
Slide 23: Provisions for Loan and Investment Losses and Net Profit from Sale of Subsidiaries
PROVISIONS FOR LOAN AND INVESTMENT LOSSES AND NET PROFIT FROM SALE OF SUBSIDIARIES AND ASSOCIATES CZK million, unconsolidated Total provisions 737 Comments + 175.0% • Profits from sales of CAC Leasing and Reflexim in the 2Q 2003 significantly impacted total provisioning 268 • Low cost of risk on cre
Slide 24: Balance Sheet
BALANCE SHEET CZK million, unconsolidated Assets Liabilities and shareholders’ equity Change Change 439,753 443,973 439,753 443,973 Cash and balances Amounts due 14,377 19,480 + 35.5% 22,549 19,877 - 11.8% with central bank to banks Amounts due from 199,729 203,932 + 2.1% banks Amounts due 341,114 3
Slide 25: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Financial Results as at 30 September 2003 – Prague – 31 October 2003 24
Slide 26: Client Portfolio Evolution
CLIENT PORTFOLIO EVOLUTION CZK billion On-balance Sheet Guaranteed portfolio Non-guaranteed portfolio 147.7 146.5 138.3 133.4 46.7 30.7 18.7 11.4 101.0 115.8 119.6 122.0 31.12.2000 31.12.2001 31.12.2002 30.9.2003 Off-balance Sheet 85.1 89.4 76.6 69.7 3.1 2.7 13.7 6.4 62.9 63.3 82.0 86.7 31.12.2000 3
Slide 27: Loans and Advances to Customers
LOANS AND ADVANCES TO CUSTOMERS Increase of the standard loans by 17% CZK million Client loans Specific and general provisions for loan losses On-balance sheet On-balance sheet - 3.6% 138,349 133,391 Total standard 17,195 - 30.0% and watch loans 664 provisions Specific 12,036 - 31.3% Standard loans
Slide 28: State Guaranteed Portfolio – Focus
STATE GUARANTEED PORTFOLIO – FOCUS CZK billion 31. 12. 2000 30. 9. 2003 60.9* 4.2 11.3 • Guaranteed portfolio comprises: CZK 11.4 bil. on-balance and CZK 2.7 bil. off-balance sheet assets 20.0 • Total repayments of receivables amounted to CZK 24.2 bil., total sales and write-offs to CZK 16.9 bil. 35
Slide 29: CDO Portfolio
CDO PORTFOLIO Sound 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 30.9.2003): USD 80 mil. Provisions and reserves based on a mark-to-model approach. 31.12.2002 30.9.2003 R
Slide 30: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Financial Results as at 30 September 2003 – Prague – 31 October 2003 29
Slide 31: Financial Results and Ratios - Consolidated
FINANCIAL RESULTS AND RATIOS - CONSOLIDATED CZK million Profit and Loss Statement 1-3Q 2002 1-3Q 2003 Change 03/02 Net banking income 17,993 17,429 - 3.1% Operating costs - 10,738 - 9,483 - 8.9% Income from not fully consolidated companies 103 385 + 273.8% Provisions for loan and investment losses 4
Slide 32: Subsidiary and Associated Undertakings Results
SUBSIDIARY AND ASSOCIATED UNDERTAKINGS RESULTS As at 30 September 2003, CZK mil., CAS/SAS Share of KB Profit after tax Equity Assets ASIS, a.s.*,** 100% 4 13 15 Factoring KB, a.s. 100% 12 130 2,619 Investiční kapitálová společnost, a.s. 100% 81 326 388 Komercni Finance, B.V.** 100% 1 9 9 Komerční ba
Slide 33: Development of KB's Share Price and Index PX50
DEVELOPMENT OF KB’s SHARE PRICE AND INDEX PX50 CZK 2,800 1,000 2,600 900 2,400 2,200 800 2,000 700 1,800 600 1,600 1,400 500 1,200 400 1,000 800 300 600 KB 200 400 PX 50 100 200 0 0 1/Oct/01 1/Jan/02 1/Apr/02 1/Jul/02 1/Oct/02 1/Jan/03 1/Apr/03 1/Jul/03 30/Sep/03 Financial Results as at 30 September
Slide 34: Interest Rates Trend
INTEREST RATES TREND 5,00 4,75 4,50 4,25 4,00 3,75 3,50 3,25 3,00 2,75 CNB Repo 2,50 3M Pribor 2,25 6M Pribor 2,00 KB Reference rate 1,75 31.XII.01 31.III.02 30.VI.02 30.IX.02 31.XII.02 31.III.03 30.VI.03 30.IX.03 Financial Results as at 30 September 2003 – Prague – 31 October 2003 33
Slide 35: Structure of Shareholders
STRUCTURE OF SHAREHOLDERS Major shareholders of Komerční banka, a. s. with over 5% of the share capital as at 30 September 2003 Number of shares outstanding - 38 million Others 34.19% Société Générale S.A. 60.35% The Bank of New York ADR Department 5.46% Financial Results as at 30 September 2003 – P
Slide 36: Contacts Investor Relations
CONTACTS Investor Relations Ladislav Šilha Head of Investor Relations Telephone: +420 222 432 155 E-mail: ladislav_silha@kb.cz Pavla Škvorová Ilona Katzová Investor Relations Officer Investor Relations Officer Telephone: +420 222 432 734 Telephone: +420 222 432 156 E-mail: pavla_skvorova@kb.cz E-mai