Komerční banka Group Financial Results as of 30 September 2023
“In the third quarter, we paid close attention to the development of our new digital bank following its roll-out in retail banking in April of this year. Gradual enrichment of the offer available in the new KB+ application by the addition of simple, advantageous, and attractive services will let us increase the number of clients switching from the legacy platform. Our ambition is to see 100,000 clients enrolled in the New Era of Banking by the end of this year and to offer migration to the new digital bank to 1,000,000 clients during 2024,” remarked Jan Juchelka, Komerční banka’s Chairman of the Board of Directors and Chief Executive Officer.
“Besides developing the new client proposition and technological systems of the Bank, the strategic transformation involves changes to the organisation of KB Group in order to make it more effective and efficient. In recent months, we have integrated operational functions of Factoring KB with those of the Bank, have been building a new sales force for KB Group based on the distribution network of Modrá pyramida, and we are streamlining development and marketing of consumer loans from a single centre for the whole Group. Successful implementation of our KB 2025 strategic programme will reinforce KB’s position as a leader in the New Era of Banking,” Jan Juchelka added.
- KB Group’s lending to customers up by 2.7% year on year, at CZK 808.3 billion.
- Deposits from clients grew by 1.2% from a year earlier to CZK 1,022.4 billion. Year to date, client deposits are higher by 11.5%.
- Volume of non-bank assets (mutual funds, pension funds, life insurance) under management expanded by 14.7% to CZK 240.7 billion.
- KB Group was serving 2,218,000 clients. Standalone Komerční banka had 1,665,000 customers, up by 14,000 year on year.
- Following introduction of the ‘New Era of Banking Written by KB’ in April, more than 50,000 clients had enrolled for KB's new digital bank by September 2023.
- Nine months of 2023: Total revenues were down by (6.9%) year on year to CZK 27.0 billion. Operating expenditures increased by 7.7% to CZK 13.0 billion. The Group reported a CZK (1.0) billion net release of provisions for credit risk. Net profit attributable to the Group’s equity holders, at CZK 12.4 billion, was down by (4.9%) year on year.
- Third quarter 2023: Total revenues decreased by (9.5%) year on year to CZK 8.9 billion. Operating expenditures rose by 7.2% to CZK 3.9 billion. The Group reported a CZK (0.1) billion net release of provisions for credit risk. Net profit attributable to the Group’s equity holders, at CZK 4.3 billion, was lower by (8.5%) year on year.
- Volume of regulatory capital reached CZK 106.5 billion, capital adequacy stood at 20.2%, and the Core Tier 1 ratio was 19.6%.
- KB had 72,934 shareholders (greater by 5,576 year on year), of which 66,869 were private individuals from the Czech Republic.