Komerční banka Group Financial Results as of 30 June 2021
The total volume of KB Group’s lending to customers expanded by 4.7% year on year, mainly driven by lending for housing purposes. The overall volume of standard client deposits within KB Group was up by 11.0%, with strong growth in the retail as well as corporate segments. The volume of non-bank assets under management leapt up by 4.3%.
For its innovative mortgage bond issue, KB was recognised with The Pioneer Award for Excellence from the Covered Bond Report. Via its KB Smart Solutions, the Bank increased its participation in the upvest real estate crowdfunding platform to 31.06%.
The number of clients with KB Mobile Banking climbed by 112,000 year on year to 980,000, representing 60% of 1,621,000 customers of the Bank. KB Group was serving 2,244,000 clients. The KB Klíč (KB Key) authentication application for accessing banking services was being used by 904,000 clients, some 234,000 more than a year earlier.
Consolidated revenues for the first half declined by (1.8%) due to interest income’s absorbing a sharp drop in interest rates year on year, even as fee income rebounded on recovering economic activity and better cross-selling. Moreover, gains from financial operations got a boost from large deals for clients on debt capital markets and greater demand for financial hedging.
Total operating expenditures declined by (1.5%) in spite of increased regulatory levies. Net creation of credit risk provisions reached CZK 0.7 billion, attesting to the sound quality of the portfolio. Net profit attributable to shareholders improved by 15.5% to CZK 5.1 billion.
In comparison with a regulatory minimum of 16.2%, KB Group’s capital adequacy ratio reached 23.3%. The liquidity coverage ratio stood at 203% while a minimum of 100% is required.
Komerční banka is taking action to mitigate climate change. It has committed to reducing its direct emissions (scopes 1 and 2) in accordance with the 1.5°C scenario from the Paris Agreement. KB will contribute to carbon removal projects with a view to reaching carbon neutrality by 2026. In 2020, the Bank shrunk its carbon footprint by 35% year on year.
The Board of Directors intends to call an extraordinary shareholders’ meeting in the fourth quarter of this year to decide upon an interim dividend distribution of earnings from 2019 and 2020, retained due to pandemic-related regulatory restrictions. The volume of an interim dividend is subject to validation by the regulator, expected by September.
„The results just published confirm Komerční banka’s dynamic business activity, consistent cost discipline, prudent risk management, and fortress capital base. This reflects positively on the decisions we have taken in the recent past to make KB more agile and attentive to client expectations. We are also proud to be a responsible corporate citizen in the Czech Republic and Slovakia that is developing a sustainable business, helping those in need, and demonstrating leadership in shaping the banking industry’s necessary response to the climate challenge.”