Facts and Results

Komerční banka, a.s.

is the parent company of KB Group (the “Group”) and a member of the Société Générale Group
ranks among the leading banking institutions in the Czech Republic and in Central and Eastern Europe
is a universal bank providing a wide range of services in retail, corporate and investment banking
is accessible through KB’s branch network, its direct banking channels, and the subsidiaries’ own sales network

Member companies of Komerční banka Group provide additional specialized financial services:

pension funds
building society schemes
factoring
consumer lending
insurance

All of the services are accessible through the dense network of KB branches, its own distribution network, and thanks to modern, on-line services, such as direct banking.

Service for corporate clients of Komerční banka is provided by two segments, usually according to annual turnover (sales) and number of products used.

Companies with turnover from CZK 60 million to 1500 million are generally served by the Corporate sales centers.

Clients with a higher turnover are usually served by the Top Corporations divisions, which are located in Prague, Brno and Bratislava.

KB Financial Group

Komerční banka holds major share in all of its subsidiaries and 49% share in associate, Komerční pojišťovna, a.s. In addition to its ownership interests in the Group, KB holds a strategic interest of 33% in Bankovní identita, a.s. and 20% in Czech Banking Credit Bureau, a.s.

11

dceřiných společností

1

přidružená společnost

SUBSIDIARIES AND ASSOCIATE COMPANIES IN THE KB GROUP

Komerční banka and KB Group in 2018

1,67 mil.
clients

776
ATMs

365
branches

Komerční banka launched a new way of logging into Internet banking using a secure application in a smartphone - KB Klíč. This allows customers to replace their internet banking security certificate with a smartphone application to access their account from any device.

Komerční banka’s clients who hold accounts also with Česká
spořitelna or Air Bank will be able to interconnect these accounts
using KB’s MojeBanka online banking, as well as with KB’s
Mobilní banka.

The Bank began processing payment orders in 24/7 mode.
Transfers between accounts within KB are executed in seconds.

Komerční banka and KB Group in 2017

Komerční banka once again achieved the prestigious Fincentrum Bank of the Year award in 2017. It also ranked 2nd in the Most Trusted Bank of the Year category and 3rd in the Private Bank of the Year category.

KB introduced a new range of current account packages corresponding to the varying requirements of diverse clients. The offer includes three account types: MůjÚčet Account, MůjÚčet Plus Account a MůjÚčet Gold Account.

Komerční banka launched quick and easy mobile phone payments using Google’s Android Pay. Individuals may activate Android Pay directly in their Mobilní banka application, and companies may do so in Mobilní banka Business. Activation readies the mobile phone for contactless payments in the Czech Republic and abroad.

Komerční banka and KB Group in 2015

1,6 mil.
clients

772
ATMs

399
branches

Over 80% of clients used at least one of the direct banking channels, i.e., internet, phone or mobile banking.

Komerční banka’s branch network includes:

10 corporate divisions designed for medium enterprises and municipalities

4 divisions dedicated to large corporate clients
KB also provides services in the Slovak Republic through its branch focused on serving corporate clients.

Modrá pyramida was attending to 519,000 customers.

The number of pension insurance participants at Penzijní fond KB reached 545,000.

Services of the consumer finance company ESSOX were being used by 219,000 active clients.

In 2015, the average number of employees of KB Group was 8,421.

Komerční banka in the Slovak Republic

provides its clients with services via a branch called “Komerční banka, a.s., pobočka zahraničnej banky”
is especially focused on large and medium-sized enterprises with a turnover of EUR 40 million or more
offers standard banking services, including:
- Cash Management
- E-banking
- Credit cards
- Financing
- Investment banking products
- Trade Finance, where KB holds a leading position in the Czech Republic

The position of the KB branch in Slovakia is especially strong as it has the know-how of the parent KB and uses synergies within KB and SG Group, thanks to which it is able to provide its clients with comprehensive financial solutions.

An individual and personal approach and custom-made products, tailored to suit the requirements of the specific client, constitute an integral part of the offer of services. The KB branch in the Slovak Republic does not offer cash operations.

More detailed information is available at: www.koba.sk

Société Générale

Komerční banka has been an important part of Société Générale Group’s international banking since October 2001. Based on a diversified universal banking model, the group combines financial solidity with a strategy of sustainable growth, and positive reference for relationship banking, recognised on its markets, chosen for the quality, proximity to clients and commitment of its teams.

Société Générale has been playing a vital role in the economy for more than 150 years. With around 149,000 employees, based in 67 countries, the group serves 31 million clients throughout the world on a daily basis. Société Générale’s teams offer advice and services to individual, corporate and institutional customers in three core businesses:

Retail banking in France with the Société Générale branch network, Credit du Nord and Boursorama, offering a comprehensive range of multichannel financial services on the leading edge of digital innovation;
International retail banking, financial services and insurance with a presence in emerging economies and leading specialised businesses; and
Corporate and investment banking, private banking, asset management and securities services, with recognised expertise, top international rankings and integrated solutions.

Société Générale is included in the main socially responsible investment indices: Dow Jones Sustainability Index (Europe), FSTE4Good (Global and Europe), Euronext Vigeo (Global, Europe, Eurozone and France) and 5 of the STOXX ESG Leaders indices.

KB Financial Group

Modrá pyramida stavební spořitelna, a.s. - 100 %

KB Penzijní společnost, a.s. - 100 %

SG Equipment Finance Czech Republic s.r.o. - 50,1 %

ESSOX s.r.o. - 50,93 %

Factoring KB, a.s. - 100 %

Komerční pojišťovna a.s. - 49 %

Protos, uzavřený investiční fond, a.s. - 83,65 %

KB Real Estate - 100 %

VN 42, s.r.o. - 100 %

Bastion European Investments S.A. - 99,98 %

STD2, a.s. - 100 %

KB SmartSolution, s.r.o. - 100 %

Other equity participation companies

Bankovní identita, a.s. - 33 %

Czech Banking Credit Bureau, a.s - 20 %

Worldline Czech Republic, s.r.o. - 1 %

Companies within SG Group in the Czech Republic and in Slovakia

ALD Automotive s.r.o.

PEMA Praha spol. s r.o. - 100 %

Companies cooperating with KB and SG Groups

Amundi Czech Republic

Key Financial Information

According to International Financial Reporting Standards (IFRS)

Consolidated data (CZK million)	2019	2018
Financial results
Net banking income	32,573	32,203
of which Net interest income	23,591	22,509
of which Net fees and commissions	5,983	6,220
Total operation costs	-14,932	-14,635
Attributable net profit	14,901	14,846
Balance sheet
Total assets	1,077,334	1,059,932
Loans to customers, net	647,259	624,954
Amounts due to customers	821,507	812,451
Total shareholders' equity	105,504	99,931
Ratios (%)¹
Return on average equity (ROAE)²	14.50%	15.28%
Return on average assets (ROAA)³	1.39%	1.44%
Capital adequacy⁴	19.72%	18.48%
Net interest margin	2.35%	2.33 %
Cost/income ratio	45.84%	45.45%

Unconsolidated data	2019	2018
Other data
Number of employees, average	7,210	7,458
Number of points of sale	343	365
Number of clients (thousands)	1,664	1,668
Number of ATMs	796	776

¹ According to the Komerční banka methodology

² Net profit attributable to shareholders / average shareholders’ equity excl. minority interest

³ Net profit attributable to shareholders / average assets

⁴ According to Basel III