Komerční banka Group Financial Results as of 31 December 2021
The KB Group as a whole was serving 2,251,000 clients. The standalone Bank had 1,625,000 customers. The number of clients with KB Mobile Banking climbed by 102,000 year on year to 1,034,000. Clients’ average satisfaction levels as measured by Net Promoter Score improved to 39 points among individual clients, 41 points for small businesses, and 45 points among corporate customers.
Transformation in accordance with the KB Change 2025 plan is proceeding quickly: KB is testing the new digital bank and streamlining its operations. The employee engagement index reached 77 points in 2021.
KB Group’s lending to customers expanded by 6.9% year on year to CZK 738.9 billion, growing in retail as well as corporate segments. The volume of housing loans provided by KB and Modrá pyramida swelled by 9.5%, to CZK 338.7 billion, as new sales of housing loans leapt by 66.3% in 2021 to CZK 109.0 billion.
Client deposits were up by 6.2%, at CZK 948.6 billion. The volume of non-bank assets under management increased by7.0%.
Fourth quarter 2021 (v. 4Q 2020)
Consolidated revenues for 4Q 2021 were up 19.1% year on year, at CZK 8.7 billion, driven by net interest and fee income. Total operating expenditures climbed by 5.1%to CZK 3.7 billion. Cost of risk in the quarter was immaterial, reflecting KB’s strong credit profile. Net profit attributable to shareholders doubled year on year to CZK 4.2 billion, driving a similar pace of growth in income taxes, which reached CZK 1.0 billion.
Full year 2021 (v. FY 2020)
Consolidated revenues for 2021 improved by 5.7% year on year to CZK 31.3 billion. All main revenue categories contributed to this gain. Total operating expenditures rose marginally by 0.7% to CZK 15.1 billion. Net creation of credit risk provisions (cost of risk) reached CZK 0.7 billion, lower by (84.0%) year on year. Net profit attributable to shareholders improved by 56.0% to CZK 12.7 billion. Income taxes increased by 52.5% to CZK 3.0 billion.
KB Group’s capital adequacy ratio reached 21.3%. The liquidity coverage ratio stood at 148%.
The Board of Directors will propose a dividend of CZK 43.80 per share, totalling CZK 8.3 billion. This proposal will be subject to a vote by the General Meeting of KB and also validation by the CNB upon its receipt of the audited financial statements for 2021. Additional steps in returning excess capital to shareholders will be considered in the second half of 2022 after completing the regulatory stress test exercise.
The international magazine The Banker has named Komerční banka Bank of the Year 2021 in the Czech Republic.
“In a year full of challenges, Komerční banka achieved excellent results. We have recorded very solid growth in the volume of our business with clients, and this has underpinned an increase in revenues. In spite of the spiking inflation and higher regulatory levies, we have kept the operating expenditures stable. The credit profile of the loan portfolio remains very strong, even though the current environment is tough for many businesses,” remarked Jan Juchelka, KB’s Chairman of the Board of Directors and Chief Executive Officer.
“In the second pandemic year, these successes were made possible by all those working within KB Group. They also have put great efforts into implementing the KB Change 2025 transformation plan. I want to thank all the employees, as well as our clients,
shareholders, and other partners for their trust in Komerční banka,” Jan Juchelka added.