Komerční banka Group Financial Results as of 30 September 2022
Total volume of KB Group’s lending to customers expanded by 8.6% year on year to CZK 787.2 billion. Growth of the portfolio was faster in corporate lending. Growth continued even in the outstanding volume of housing loans, despite a drop in new production.
Overall volume of standard client deposits within KB Group decreased by (3.2%), to CZK 1,010.1 billion, influenced by transfer of some client savings to mutual funds, utilisation of financial reserves accumulated during pandemic lockdowns, and stiff competition. Volume of non-bank assets under management leapt by 5.3% to CZK 210.0 billion.
KB Group as a whole was serving 2,246,000 clients. That is 9,000 more than a year earlier. Standalone Komerční banka had 1,651,000 customers, up by 28,000 year on year.
Compared with the first 9 months of the previous year, when economic activity had been affected by pandemic restrictions, KB reported a 28.2% increase in revenues to CZK 29.0 billion.
Operating expenditures were higher by 6.4%, at CZK 12.1 billion.
Quality of the loan portfolio remained resilient. Net creation of credit risk provisions increased by 71.2% to CZK 1.2 billion, predominantly reflecting anticipated impacts of high inflation.
Net profit attributable to shareholders improved by 51.1% to CZK 12.9 billion. Income taxes rose by 45.5% to CZK 2.9 billion.
In 9 months of 2022, KB Group paid into public budgets CZK 2.8 billion in income taxes, CZK 1.3 billion into the Resolution and Deposit Insurance regulatory funds, CZK 1.5 billion for social and health insurance, CZK 1.0 billion in withholding tax from interest and dividends, and further substantial amounts in other charges, such as VAT. The employees paid an additional CZK 0.5 billion in income tax and CZK 0.5 billion in social and health insurance.
Volume of regulatory capital reached CZK 110.7 billion, capital adequacy stood at 21.1%, and the Core Tier 1 ratio was 20.5%.
Komerční banka had 67,358 shareholders (up by 9,204 year on year), of which 61,445 were private individuals from the Czech Republic.
Komerční banka was rated ’AA’ by MSCI ESG ratings of global measurement of companies’ management of financially relevant ESG risks and opportunities. It also received a score of 54 in the S&P Global Corporate Sustainability Assessment, thereby ranking KB among leading banks globally in terms of sustainability practices.
“Komerční banka continues to deliver solid business and financial performance. The credit profile of the loan portfolio is resilient, although we have noted worsening confidence indicators among businesses and consumers. Komerční banka will continue to stand by its clients at all times. Already in pandemic years 2020-2021 we have proved our determination and commitment to our clients even in uneasy times.
We have recently passed important milestones in our transformation journey planned until 2025. KB’s completely new digital banking infrastructure is operational with 3,000 clients from among employees. We are ready to switch to a new card management system in the next few days. The whole Change 2025 programme will reinforce Komerční banka’s competitiveness in the years to come.
I am especially happy of the high marks that Komerční banka has received recently in reputable global assessments of companies’ management of environmental, social, and governance challenges. Both MSCI ESG and S&P Global CSA measure various sustainability performance factors, including governance structure, reporting transparency and tax transparency. The acknowledgements attest to the important and positive role that the Bank plays in supporting the stability and development of the Czech economy and society,” remarked Jan Juchelka, KB’s Chairman of the Board of Directors and Chief Executive Officer.