Komerční banka Group Financial Results as of 31 March 2021

The total volume of KB Group’s lending to customers expanded by 4.0% year on year, mainly driven by lending for housing purposes. The overall volume of standard client deposits within KB Group was up by 10.1%, with strong growth reported in retail as well as corporate segments. The volume of non-bank assets under management leapt up by 5.9%.

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The number of clients with KB Mobile Banking climbed by 124,000 year on year to 959,000, representing 58% of all KB 1,641,000 customers. The KB Klíč (KB Key) authentication application for accessing banking services was being used by 867,000 clients, some 298,000 more than a year ago.

In a quarter influenced by significant restrictions on people’s mobility and on some business activities, KB reported a (5.3%) decline in revenues and (1.5%) lower operating expenditures. Net creation of credit risk provisions reached CZK 0.6 billion. Net profit attributable to shareholders decreased by (24.9%) to CZK 2.0 billion.

Indicators of KB Group’s capital adequacy and liquidity significantly exceed the applicable regulatory requirements. Capital adequacy reached 22.5% and the ratio of net loans to deposits 68.9%.

Further to its strategic steps with a view to reach carbon neutrality in its own operations by 2026, Komerční banka announced it is committed also to reduce progressively its exposure to projects actively associated with the coal sector.

The Annual General Meeting consented once again to retain the full 2020 profit in accordance with Czech National Bank instructions. The Board of Directors intends to call an extraordinary shareholders’ meeting in the fourth quarter of this year to decide upon dividend distribution in the volume as cleared by the regulator.

„In spite of obvious impacts from the pandemic environment, Komerční banka’s overall results were satisfactory and some areas, such as lending for housing purposes or assisting our clients with their debt capital market activities, performed above expectations. We have been working hard in preparation for serving our clients even in a changed banking world beyond the pandemic. Our people have been able to focus in the challenging environment on the needs of our clients and to progress further on delivering our 2025 strategic plan.”

Jan Juchelka, KB’s Chairman of the Board of Directors and Chief Executive Officer