Komerční banka Group Financial Results as of 31 March 2022
The total volume of KB Group’s lending to customers expanded by 8.1% year on year to CZK 750.7 billion.Growth was recorded in retail as well as corporate lending. The overall volume of standard client deposits within KB Group was up by 3.0%, at CZK 1,015.1 billion. The volume of non-bank assets under management leapt up by 7.6% to CZK 206.9 billion.
The number of users of the KB Klíč (KB Key) authentication application for accessing banking services crossed the 1,000,000 mark only on 4 April 2022. So, as of 31 March, KB Key was being used by 999,000clients, some 133,000 more than a year ago. The number of clients with KB Mobile Banking climbed by 107,000 year on year to 1,066,000, representing 65% of all KB 1,636,000 customers. The KB Group as a whole was serving 2,253,000 clients.
Compared with the first quarter of the previous year that was influenced by significant restrictions on people’s mobility and on some business activities, KB reported a 27.7% increase in revenues. Operating expenditures were higher by 9.8%, mainly due to significantly higher regulatory levies. Net creation of credit risk provisions decreased by (52.6%), reflecting continued strong quality of assets. Net profit attributable to shareholders improved by 75.9% to CZK 3.5 billion.
Indicators of KB Group’s capital adequacy and liquidity continue to exceed the applicable regulatory requirements. Capital adequacy reached 20.2%, and the Core Tier 1 ratio was at 19.8%. The ratio of net loans to deposits reached 72.8%.
The Annual General Meeting held on 20 April 2022 approved the audited financial statements for 2021 and the proposal for the distribution of profit, including a dividend payment in the amount of CZK 8.3 billion, which represents CZK 43.8 per share.
Further steps to address the matter of excess equity accumulated due to the pandemic dividend restrictions in 2020 and 2021 will be considered in the second half of 2022 after finalisation of the annual regulatory stress tests.
„The Czech economy had been on track in the first weeks of 2022 to reach quite soon its pre-pandemic levels of activity and even gradually to tame the inflation pressures. The beginning of the war in Ukraine on 24 February, however, changed the trajectory completely. Now, economic growth will be slower and inflation will remain higher for longer. Our sympathies are with the innocent Ukrainian victims of the war. We hope that the world will soon return to the path of peace and democracy. As Komerční banka, we continue to reinforce our resilience vis-à-vis current and future challenges by acting ethically and in full compliance with the laws and regulations, by contributing to the well-being of the communities within which we operate, as well as by helping to preserve the natural environment of our planet.”