Komerční banka Group Financial Results as of 31 December 2020
KB maintains a robust capital base with total capital adequacy at 22.3%, not including profit generated in 2020. That is significantly above the applicable regulatory minimum of 16.2%. The Bank expects discussion with the CNB on the dividend proposal to begin in March, upon finalising audited financial statements.
Overall volume of standard client deposits within KB Group increased by 9.4% to CZK 893.0 billion. The volume of net loans granted corresponds to 76.1% of the client deposit base.
Total volume of the Group’s lending to customers expanded by 5.7% year on year to CZK 691.4 billion. Lending grew in both retail and corporate client segments.
KB has clearly led the market in lending to clients under Covid guarantee programmes. Within the COVID III programme, KB approved 1,700 client applications totalling CZK 12 billion, thereby achieving 53% market share by approved volume (59% by volume drawn). The Bank applies its standard risk assessment and underwriting process for these loans.
Quality of assets remained very good. All payment moratoria expired by the end of October and the vast majority of clients returned to standard repayment schedules.
Financial performance remains resilient despite major economic decline caused by the pandemic. The Group reported a (8.9%) decline in revenues and 0.4% increase in operating expenditures, affected by higher regulatory charges. Net creation of credit risk provisions reached CZK 4.6 billion, reflecting impacts of the Covid-19 crisis. Net profit attributable to shareholders decreased by (45.3%) to CZK 8.2 billion.
With the Temenos Transact platform at its core, Komerční banka has begun building its new digital bank.
KB has committed to make its operations carbon neutral by 2026. It also has acceded to the European Diversity Charter, pledging to promote diversity and equal opportunities for its employees.
„The pandemic and the related economic hardships have changed a number of economic sectors, as well as people’s habits and requirements. Komerční banka has continued to deliver its services to clients in a secure and convenient way. We have also completed the first part of our transformation, and we have even begun implementing the new strategic programme until 2025, which will make KB a leader in the new era of banking. The next steps are highlighting our focus on digital and sustainable bankin. We have committed to becoming carbon neutral by 2026, and we have set up construction of the new digital bank with the Temenos Transact platform at its core. Komerční banka will remain a trustworthy and reliable partner for our clients, employees, and other stakeholders.”