Penzijní fond Komerční banky rises to the position of the third largest pension fund in the Czech Republic

Press release

3/16/2011
8:00 AM

Penzijní fond Komerční banky generated a profit of CZK 727 million in 2010. Thanks to its conservative investment strategy and consistent cost control, it will therefore deliver on its promise of early 2010 and grow the value of the pension scheme members’ money by more than 2% for 2010.

Penzijní fond Komerční banky [PF KB] is now one of the three largest pension funds in the Czech Republic in terms of both the number of clients and the profit achieved. It has recently also received the Pension Fund of the Year 2011 award from the prestigious World Finance magazine and the highest rating from the reputable agency Moody’s.

“The steady growth in the value of the invested money and the low fluctuations in this growth, even at a time of unstable financial markets, are a very strong signal of security for their money for more than half a million clients of our fund,” said Pavel Jirák, Penzijní fond Komerční banky Chairman and Executive Director.

As at 31 December 2010, Penzijní fond Komerční banky managed assets for more than 501,000 pension scheme members. The volume of assets under management increased 5.8% y/y to CZK 28.718 billion.

The attraction of PF KB for new clients will also be supported by the springtime marketing campaign, starting now. Every client who signs a pension agreement with PF KB through the distribution network of the parent company, Komerční banka, through the sales network of Modrápyramida stavební spořitelna, through external agents or via PF KB’s website by the end of May, will obtain a luxury bath towel as a gift. The special offer applies to the clients who agree to pay their own contribution to the scheme of at least CZK 300 per month and the first contribution is credited to their account kept by the pension fund by 30 June 2010.

“We also expect the number of clients to rise thanks to Komerční banka’s latest product, the Lady Card credit card. Holders of Lady Cards will obtain from Komerční banka a contribution, which will be deposited in their PF KB account, of 1% of the volume of all transactions made using this credit card,” noted Pavel Jirák.

Penzijní fond KB is currently one of the funds that have the most conservative investment portfolio. Thanks to this investment strategy and stable income, mostly from government bonds, PF KB is able to estimate the growth in value very accurately for the coming years. As at 31 December 2010, very secure bonds and bank deposits accounted for 94% and 6%, respectively, of PF KB’s investment portfolio.

Komerční banka is one of the best run universal banks in Central Europe. It provides comprehensive services to clients in the areas of retail, corporate, and investment banking. The Komerční banka Group’s 8,619 employees serve 2.5 million clients, who can use an extensive network of 395 points of sale throughout the country. Komerční banka currently operates 677 ATMs and more than one million of its clients use one of direct banking channels.

Komerční banka is part of the Société Générale Group, one of the largest banking groups in the euro zone (in terms of market capitalisation), whose 157,000 employees serve more than 32 million individual clients worldwide.