Komerční banka Group Financial Results as of 30 June 2022
Total volume of KB Group’s lending to customers expanded by 8.7% year on year to CZK 769.4 billion. Growth was recorded in retail as well as corporate lending.
Overall volume of standard client deposits within KB Group was greater by 2.7%, at CZK 1,024.3 billion. Volume of non-bank assets under management leapt by 4.8% to CZK 205.6 billion.
KB Group as a whole was serving 2,256,000 clients. That is 12,000 more than a year earlier. Standalone Komerční banka had 1,650,000 customers, up by 29,000 year on year. The number of clients with KB Mobile Banking climbed by 119,000 year on year to 1,099,000 and represents 67% of all KB customers. KB Klíč (KB Key) authentication application for accessing banking services was being used by 1,036,000 clients, some 132,000 more than 1 year ago.
Compared with the first half of the previous year, when economic activity had been affected by pandemic restrictions, KB reported a 29.5% increase in revenues to CZK 19.2 billion.
Operating expenditures were higher by 7.5%, at CZK 8.4 billion.
Quality of the loan portfolio remained strong. Net creation of credit risk provisions decreased by (15.9%) to CZK 0.6 billion. Provisioning concentrated on corporate clients with different types of links to Russian market. Repayment discipline and recovery performance in retail lending remained excellent.
Net profit attributable to shareholders improved by 62.3% to CZK 8.3 billion. Income taxes rose by 64.6% to CZK 2.0 billion.
KB continued to report strong solvency indicators. Volume of regulatory capital reached CZK 108.5 billion, capital adequacy stood at 20.3%, and the Core Tier 1 ratio was 20.0%. The ratio of net loans to deposits reached 74.0%.
Komerční banka had 64,384 shareholders (up by 6,533 year on year), of which 58,349 were private individuals from the Czech Republic.
“The first half of 2022 brought an extraordinary level of uncertainty to the global as well as domestic economy, often in relation to effects of the war in Ukraine. Komerční banka has maintained its role as a reliable and trustworthy pillar of the financial system in the Czech Republic: supporting its clients in pursuing their plans and ambitions, contributing to fiscal stability as one the largest taxpayers in the country, facilitating the economy’s transition to a more resilient and sustainable model. KB has continued its own transformation with an ambition to be a leader in the new era of digital banking. Predictability and stability in the economic environment greatly enhances confidence among consumers and businesses. Policymakers could contribute crucially to this by promoting consistent and well-informed policies that are long term in their orientation.”