Komerční banka Group Financial Results as of 30 September 2021
The number of clients with KB Mobile Banking exceeded 1,000,000, as it climbed by 104,000 year on year to 1,008,000, representing 62% of 1,623,000 customers of the Bank. The KB Klíč (KB Key) authentication application for accessing banking services was being used by 935,000 clients, 194,000 more than a year earlier. The whole KB Group was serving 2,237,000 clients.
The total volume of KB Group’s lending to customers expanded by 4.7% year on year, mainly driven by lending for housing purposes. The overall volume of standard client deposits within KB Group was up by 12.1%, with strong growth in the retail as well as corporate segments. The volume of non-bank assets under management leapt up by 6.1%.
Consolidated revenues for the first three quarters improved by 1.3% year on year, as the volumes of both lending and deposits expanded, clients in retail segments added to their investments in mutual funds, and corporate clients were benefiting from favourable conditions for issuance on the debt capital markets while prudently hedging their financial risks.
Total operating expenditures declined by (0.7%), as lower personnel and administrative costs were offset by increased regulatory charges for the Resolution Fund and higher depreciation and amortisation reflecting investments in digitalisation.
Net creation of credit risk provisions reached CZK 0.7 billion, lower by (78.9%) year on year. Cost of risk, albeit low, was concentrated in the corporate segment. In retail, KB was able to reduce the volume of provisions thanks to continued excellent risk performance.
Net profit attributable to shareholders improved by 40.7% to CZK 8.6 billion. Income taxes increased by 36.6% to CZK 2.0 billion.
In comparison with a regulatory minimum of 16.2%, KB Group’s capital adequacy ratio reached 23.0%. The liquidity coverage ratio stood at 200% even as a minimum of 100% is required.
The Extraordinary General Meeting of KB, held per rollam, approved the distribution of retained earnings in the amount of CZK 4.5 billion, which is CZK 23.86 per share before taxation. The record date for the dividend is 11 November 2021 and the payment date is 3 December 2021.
KB won the Best Debut Deal category after the votes of covered bond market participants were counted in the GlobalCapital 2021 Covered Bond Awards for its innovative January issue of mortgage bonds denominated in euro. The Czech Corporate Social Responsibility Association recognised KB in its 2021 SDG Awards for non-financial reporting.
„Komerční banka has passed an inflection point in the development of its revenues after the significant hit it took from the pandemic. I am proud of how we have been able to consistently support our clients and even grow the volume of our business with them throughout this period. I am also especially proud to see the progress we have made in only 12 months in implementing the KB Change 2025 strategic plan, including to complete the first phase of building the new digital bank in KB.”