Komercni Banka, a.s. · PSECZ:KOMB
Komercni Banka, a.s — H1 2004 Earnings Presentation
39 slides from Komercni Banka, a.s's earnings presentation, Jul 29, 2004
Slide 1: Financial Results as at 30 June 2004
Financial Results as at 30 June 2004 (International Financial Reporting Standards) Prague - 29 July 2004
Slide 2: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Unconsolidated Financial Results as at 30 June 2004 – Prague – 29 July 2004 1
Slide 3: Highlights of the First Half of 2004: Revenues from core business increasing
HIGHLIGHTS OF THE FIRST HALF OF 2004 Revenues from the core business are increasing Year-on-year comparison • Net interest income increased by 3% • Non-FX fees and commissions went up by 7% • Total costs under control; year on year stable • Impairment on the CDOs in the amount of CZK 218 mil. • Cost
Slide 4: Highlights of the First Half of 2004: Retail business keeps performing
HIGHLIGHTS OF THE FIRST HALF OF 2004 Retail business keeps performing Year-on-year comparison • Number of customers increased by 7% to 1,369 thousand • 771 thousand clients, i.e. 56% of the total, use one of direct banking channels • New product MERLIN, launched in April, provides the insurance agai
Slide 5: Loans to Individuals
LOANS TO INDIVIDUALS Retail loans continue to grow Mortgages Consumer loans Total volume in CZK mil. Total volume in CZK mil. 25,987 + 45% 17,879 + 17% 9,588 8,180 30. 6. 2003 30. 6. 2004 30. 6. 2003 30. 6. 2004 • Year-on-year increase in volumes of • Year-on-year increase in volume of mortgages gra
Slide 6: Loans to Small Businesses
LOANS TO SMALL BUSINESSES Success of new products and simplified processes CZK million Loans to small businesses Volume of granted loans in 1H in CZK mil. Total volume of loans and overdrafts in CZK mil. Profi loans* Other Business loans 8,405 + 47% 5,734 4,114 + 134% 1,403 1,759 271 2,711 1,488 1H
Slide 7: Medium Enterprises and Municipalities
MEDIUM ENTERPRISES AND MUNICIPALITIES Growing dynamics in lending to this segment Medium Enterprises and Municipalities Volume of granted loans in 1H in CZK mil. Total volume of loans and overdrafts in CZK mil. 35,700 + 22% 29,200 26,100 + 55% 16,800 1H 2003 1H 2004 30. 6. 2003 30. 6. 2004 • Volumes
Slide 8: Corporate and Investment Banking
CORPORATE AND INVESTMENT BANKING KB – leader in the market • Year-to-date increase in the loans to large corporations by 3% • Complex cash management (real time payments) • New products for employees of KB corporate clients • Participation in 6 syndications; KB’s participation more than CZK 3.5 bill
Slide 9: Individuals and Small Businesses - Penetration
INDIVIDUALS AND SMALL BUSINESSES - PENETRATION Exploitation of penetration potential continues Penetration ratio* 30. 6. 2003 31.12.2003 30. 6. 2004 Change 1H 04/ 1H 03 Individuals PACKAGES 39.5 49.0 58.2 + 47.3% MORTGAGES 1.9 2.1 2.3 + 21.1% CONSUMER LOANS 8.0 8.4 9.2 + 15.0% PAYMENT CARDS 60.1 63.
Slide 10: Payment Cards
PAYMENT CARDS Utilisation of cards keeps increasing 30. 6. 2003 30. 6. 2004 YonY Change Payment cards 1,463 thousand 1,979 thousand +35.3% issued Credit cards issued 33,890 60,040 +77.2% Number of merchants 18,992 20,000 +5.3% accepting payment cards Number of POS 9,233 11,374 +23.2% (points of sale
Slide 11: Loan Portfolio Development – Premier Bank
LOAN PORTFOLIO DEVELOPMENT – PREMIER BANK 14% - solid growth of the loan portfolio Business loans Volume of loans (Premier bank) Mortgage loans gross amount, CZK billion Consumer loans + 14% • Year-on-year increase of the Premier 137.6 140.4 Bank portfolio by 14% 127.4 133.6 123.0 • Business loans i
Slide 12: Deposits
DEPOSITS Continuous growth in the deposits base Loans from customers (repo transactions excluded) Volume of deposits Term deposits and saving accounts CZK billion Current accounts + 7% 344.0 345.5 351.5 343.1 329.2 29.8 33.8 44.1 42.5 33.4 • Year-on-year growth in clients’ deposits by 7% • Current a
Slide 13: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Unconsolidated Financial Results as at 30 June 2004 – Prague – 29 July 2004 12
Slide 14: Financial Results and Ratios
FINANCIAL RESULTS AND RATIOS Growth in the core banking revenues by 3% CZK million, unconsolidated Profit and Loss Statement 1H 2003 1H 2003 1H 2004 Change 04/03 restated Net banking income 11,363 10,915 11,201 + 2.6% Operating costs -5,842 -5,842 -5,891 + 0.8% Net operating income 5,521 5,073 5,310
Slide 15: Net Interest Income
NET INTEREST INCOME Increasing NII from loans driven by the volumes’ growth CZK million, unconsolidated Net Banking Income Net Interest Income Other NII from loans NII from deposits + 2.6% 11,201 10,915 5,960 6,119 817 • Upturn in NII: year-on-year increase of 997 - 18.1% 2.7% (growth in 2Qvs.1Q by
Slide 16: Net Fees and Commissions
NET FEES AND COMMISSIONS Non-FX F&C grow with the volumes of business CZK million, unconsolidated Net Banking Income Net Fees and Commissions Non-FX FX clean payments + 2.6% FX cash conversions 11,201 4,205 4,340 10,915 • Y-on-y growth, driven by increasing numbers and volumes, mainly in: − services
Slide 17: Trading Profits and Other Income
TRADING PROFITS AND OTHER INCOME Dividends from subsidiaries received in the second quarter CZK million, unconsolidated Net Banking Income Net profit from financial operations FX operations Interest and Commodity Net profit from fair value changes of 861 Derivatives AFS securities in 1H 2003 + 2.6%
Slide 18: Operating Costs
OPERATING COSTS Cost/Income Ratio under 53% CZK million, unconsolidated Personnel expenses Operating Costs Released over accruals 2,675 -3.9% 2,571 • In both 1Q 2003 and 1Q 2004 168 release of over accruals of 260 bonuses; without this the 2,415 2,403 personnel cost would have decreased by 3.6% • Po
Slide 19: Operating Costs Q-on-Q
OPERATING COSTS Operating costs Q-on-Q CZK million, unconsolidated Depreciation, impairment and disposal of fixed assets General administrative expenses Personnel expenses 3,242 3,033 2,880 3,011 2,704 425 415 373 436 345 1,170 1,353 1,326 1,261 1,003 1,357 1,356 1,647 1,154 1,249 2Q 2003 3Q 2003 4Q
Slide 20: Provisions for Loan Losses and Impairment of Securities
PROVISIONS FOR LOAN LOSSES AND IMPAIRMENT OF SECURITIES, NET PROFIT FROM SALE OF SUBSIDIARIES AND ASSOCIATES CZK million, unconsolidated Total loan loss provisions and impairment of securities Provisions for loan losses Changes in values of securities (booked directly to equity in 2004) Impairment o
Slide 21: Balance Sheet
BALANCE SHEET CZK million, unconsolidated Assets Liabilities and shareholders’ equity Change Change 447,565 459,482 447,565 459,482 12,607 + 2.2% 14,730 - 22.3% Cash and balances 12,340 Amounts due 18,959 with central bank to banks Amounts due from 201,638 233,020 + 15.6% banks Amounts due 349,505 3
Slide 22: Shareholders' Equity
SHAREHOLDERS’ EQUITY Development since the end of 2003 Total shareholder’s equity Total shareholder’s equity as at 31 December 2003: - 5,399 as at 30 June 2004: CZK 40,399 million CZK 35,000 million + 3,868 - 7,809 Profit of the Dividends and current period reserve funds - 1,446 +3 - 15 Hedging 0 re
Slide 23: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Unconsolidated Financial Results as at 30 June 2004 – Prague – 29 July 2004 22
Slide 24: Gross Loans to Customers
GROSS LOANS TO CUSTOMERS 5% growth and stable quality of the portfolio CZK million Client loans Specific and general provisions for loan losses On-balance sheet On-balance sheet Excluding loans of CZK 1,290 mil. transferred to ČKA in June 2004 + 4.7% 143,681 137,170 5,077 + 4.8% 5,321 Total standard
Slide 25: CDO Portfolio
CDO PORTFOLIO Further increase of the coverage As of 30 June 2004 Specific provisions / Invested amount Date of acquisition: September 2000 - April 2001 23.5% Initial invested amount: USD 426 mil. 19.3% Invested amount as at 30. 6. 2004: USD 388 mil. Total coverage (as at 30. 6. 2004): USD 91 mil. P
Slide 26: Content
CONTENT • Business Performance • Financial Performance • Loan Portfolio Development • Appendix Unconsolidated Financial Results as at 30 June 2004 – Prague – 29 July 2004 25
Slide 27: Financial Results and Ratios – Consolidated
FINANCIAL RESULTS AND RATIOS – CONSOLIDATED CZK million Profit and Loss Statement 1H 2003 1H 2003 1H 2004 Change 04/03 restated Net banking income 11,602 11,092 11,377 - 1.9% Operating costs - 6,175 - 6,175 - 6,166 - 0.0% Income from not fully consolidated companies and exclusion of subsidiaries fro
Slide 28: Subsidiary and Associated Undertakings Results
SUBSIDIARY AND ASSOCIATED UNDERTAKINGS RESULTS As at 30 June 2004, CZK mil., CAS/SAS Share of KB Profit after tax Equity Assets ASIS, a.s.* 100% NA NA NA Factoring KB, a.s. 100% 18 140 3,125 FranFinance Consumer Credit, s.r.o. 51% -31 177 195 Investiční kapitálová společnost, a.s. 100% 63 195 236 Ko
Slide 29: Number of Clients
NUMBER OF CLIENTS Thousands Individuals + 90 thousands clients Entrepreneurs and +7% y-on-y Corporates 1,331 1,350 1,369 1,279 1,290 980 992 1,034 1,055 1,075 299 298 297 295 294 June 2003 September 2003 December 2003 March 2004 June 2004 Unconsolidated Financial Results as at 30 June 2004 – Prague
Slide 30: Direct Banking
DIRECT BANKING 59% of KB clients use direct banking Guaranteed Payment Y-on-Y Increase PC Banking 264 thousand clients (+ 52%) Internet Banking 770,818 Phone Banking 713,965 24,887 647,032 24,197 23,296 22,735 23,657 567,290 22,040 185,394 506,668 23,786 168,174 21,466 146,738 23,616 21,009 116,028
Slide 31: Sales Network for All Segments
SALES NETWORK FOR ALL SEGMENTS Individuals Medium & Enterprises Small and Corporates Businesses Municipalities 335 37 8 Points MEM Business Corporate Business of Sales Centers Centers (including 40 regional branches) Number of ATMs grew year on year by 63 to the total of 536 Unconsolidated Financial
Slide 32: Key Products for Individuals
KEY PRODUCTS FOR INDIVIDUALS 30. 6. 2003 30. 6. 2004 YonY Change 148,620 199,935 + 34.5% IDEAL packages packages 96,624 250,584 + 159.3% PERFEKT KONTO packages packages 53,054 70,101 + 32.1% EXPRESS KONTO packages packages 23,776 24,338 + 2.4% A-KONTO packages packages 68,087 87,696 + 28.8% GAUDEAMU
Slide 33: Key Products for Small Businesses
KEY PRODUCTS FOR SMALL BUSINESSES 30. 6. 2003 30. 6. 2004 YTD Change 8,592 63,185 EFEKT 635.4% packages packages 2,585 17,561 KOMFORT 579.3% packages packages 278 1,268 EXCELENT 356.1% packages packages 0 4,838 N.A. OPTIMUM MEDICUM packages 4,213 total loans 8,993 total loans 113.5% Business loans A
Slide 34: Loan Products Development
LOAN PRODUCTS DEVELOPMENT Strong growth in Small businesses and MEM segment CZK million SMALL BUSINESSES 30. 6. 2003 30. 6. 2004 YonY Change Number of granted 1,576 4,373 177.5% loans in the period Volume of granted 1,759 4,114 133.9% loans in the period Number of total loans 4,213 8,993 113.5% Numb
Slide 35: Cross-Selling Activities within the KB Group
CROSS-SELLING ACTIVITIES WITHIN THE KB GROUP Products sold through KB 30.6. 2003 30.6. 2004 Change 04/03 network Life insurance Vital (premium written in CZK bil.) 1.55 1.40 -10% Mutual funds (sales in CZK bil.) 5.6 3.1 -45% Pension insurance (inflows in CZK bil.) 0.65 0.81 +25% Factoring (turnover
Slide 36: Development of KB's Share Price and Index PX50
DEVELOPMENT OF KB’s SHARE PRICE AND INDEX PX50 CZK 3 400 3 200 800 3 000 700 2 800 2 600 600 2 400 500 2 200 2 000 400 1 800 1 600 300 II. 14 . 1 9 I. 1 0 II. 15 . 2 0 I. II. 22 . 5- . . . 13 . I. . 22 I. 17 . I. 15 . -I. 23 . 27 I. . 23 . 28 . 24 . 30 . 31 . -V -X -V I -I -IV -IX -IV -II III XI -II
Slide 37: Interest Rates Evolution
31 .1 2 31 .200 1,80% 2,30% 2,80% 3,30% 3,80% 4,30% 4,80% .1 1 5,30% 28 . 20 .2 02 . 31 200 .3 2 30 . 20 .4 02 . 31 200 .5 2 . 30 200 .6 2 . 31 200 .7 2 . 31 200 .8 2 30 . 20 .9 02 31 . 20 Pribor 3M .1 02 0 30 .20 .1 02 1 31 .20 .1 02 2 31 .200 .1 2 28 . 20 .2 03 . Pribor 6M 31 200 .3 3 . INTEREST R
Slide 38: Structure of Shareholders
STRUCTURE OF SHAREHOLDERS Major shareholders of Komerční banka, a. s. with over 5% of the share capital as at 17 July 2004 Number of shares outstanding - 38 million Others Société Générale S.A. 33.89% 60.35% The Bank of New York ADR Department 5.76% Unconsolidated Financial Results as at 30 June 200
Slide 39: Contacts – Investor Relations
CONTACTS Investor Relations Ilona Katzová Head of Investor Relations Telephone: +420 222 432 156 E-mail: ilona_katzova@kb.cz Martin Skoumal Pavla Škvorová Investor Relations Officer Investor Relations Officer Telephone: +420 222 432 155 Telephone: +420 222 432 734 E-mail: martin_skoumal@kb.cz E-mail