- About Bank
- For investors
- News
- Komerční banka Group Financial Results as of 31 December 2023
Komerční banka Group Financial Results as of 31 December 2023
“The results of 2023 attest to Komerční banka's strength and success. Among many initiatives and achievements, the most important milestone came on 18 Apri. That is the day we launched the ‘New Era of KB’, bringing a modern, convenient and user-friendly solution to our clients. The KB+ app is today being used by more than 180,000 clients, benefitting from new features, subscription plans and paperless digital solution. In 2023, we also completed building out of the joint production and processing centre for housing loans granted by both KB and Modrá Pyramida. These and other achievements have been acknowledged by several important awards, including the Mastercard Bank of the Year title. In 2024, implementation of the KB 2025 transformation plan continues, and we will offer New Era of Banking services to 1,000,000 retail banking clients,” remarked Jan Juchelka, Komerční banka’s Chairman of the Board of Directors and Chief Executive Officer.
“In the past year, we achieved strong results. We succeeded in growing the client base as well as the volumes of loans and deposits. Lending to clients expanded even though the demand was influenced by expectations for lower interest rates to come. Deposits from clients leapt by a tenth and exceeded the one trillion crown mark. Clients’ assets in non-bank products, and particularly in mutual funds, grew even faster. Net profit reached CZK 15.6 billion. At the same time, KB Group - as it does every year - contributed significant amounts to the public budgets. For example, KB Group paid CZK 4.8 billion in income taxes, CZK 0.4 billion in advances for the windfall tax, CZK 1.3 billion into the Resolution and Deposit Insurance regulatory funds, CZK 2.1 billion for social and health insurance, CZK 1.8 billion in withholding tax, more than CZK 0.8 billion in VAT, and further amounts in other charges,” Jan Juchelka added.
At CZK 827.7 billion, KB Group’s lending to customers rose by 5.5% year on year.
Client deposits grew by 9.7% from a year earlier to CZK 1,006.1 billion. Volume of non-bank assets (mutual funds, pension funds, life insurance) under management expanded by 16.0% to CZK 251.3 billion.
KB Group was serving 2,199,000 clients. Standalone Komerční banka had 1,664,000 customers, up by 13,000 year on year.
Full year 2023 versus 2022: Total revenues were down by (6.3%) year on year to CZK 36.2 billion. Operating expenditures increased by 8.2% to CZK 17.3 billion. Cost of risk was very small. Attributable net profit, at CZK 15.6 billion, was down by (11.4%) year on year.
Fourth quarter 2023 vis-à-vis 4Q 2022: Total revenues decreased by (4.4%) to CZK 9.2 billion. Operating expenditures rose by 9.5% to CZK 4.3 billion. The Group reported a CZK 1.1 billion net release of provisions for credit risk. Net profit attributable to shareholders, at CZK 3.3 billion, was down by (29.7%).
During 2023, KB Group paid into public budgets CZK 4.8 billion in income taxes, CZK 0.4 billion in advances for windfall tax, CZK 1.3 billion into the Resolution and Deposit Insurance regulatory funds, CZK 2.1 billion for social and health insurance, CZK 1.8 billion in withholding tax, more than CZK 0.8 billion in VAT, and further amounts in other charges. The employees paid an additional CZK 0.7 billion in income tax and CZK 0.7 billion in social and health insurance out of their incomes from KB Group.
Regulatory capital reached CZK 105.9 billion, total capital ratio stood at 18.8%, the CET1 ratio at 17.7%.
The Board of Directors will propose a dividend of CZK 82.66 per share, totalling CZK 15.7 billion. Shareholders will vote on the proposal at the General Meeting set for 24 April 2024.
KB won the main category in the Mastercard Bank of the Year contest, along with the titles of Corporate Bank of the Year 2023 and Bank without Barriers of the Year 2023. Komerční pojišťovna was named Best Life Insurer 2023 in the VISA Best Insurance Company survey.
KB had 73,478 shareholders (greater by 4,444 year on year). Of these, 67,449 were private individuals from the Czech Republic with shares representing 14.9% of Komerční banka’s equity.