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Strong and responsible contribution to Czech economic growth

Komerční banka today reported its consolidated results for the first half of 2017. Revenues excluding last year’s gain from disposal of KB’s stake in VISA Europe were up by 2.0% year on year to CZK 15.6 billion1. The growth in revenues was mainly driven by clients’ strong currency hedging activity relating to the decision of the CNB to eliminate the floor under the Czech crown’s exchange rate. Recurring operating expenditures rose by 1.9%2, whereas an increase in staff costs was mitigated by slower-growing administrative costs and depreciation. Furthermore, the Group included in its operating expenses already in the first quarter a positive item from sale and revaluation of KB’s headquarters buildings. The successful recovery performance and favourable economic conditions led to an extraordinary situation enabling a net release of provisions for loan losses of CZK 0.1 billion. The net profit attributable to shareholders improved by 15.0% to CZK 7.7 billion.

Komerční banka’s macroeconomic forecast – omens for strong growth

The Czech economy is growing this year, and registering one of its most successful periods. Compared with the past years the Czech Republic no longer lags behind its regional neighbours in terms of growth. Czech households are also benefiting from the economic growth. The employment rate has hit a new record: this year, wages will increase at the fastest pace since 2007. The growth in investments and productivity is a promise that the wage dynamics will continue in the coming years. Despite the stronger Czech koruna and weaker inflationary tendencies abroad, the domestic wage pressures should ensure that price hikes will exceed the inflation target. The CNB will therefore continue in its return to the standard functioning of the monetary policy. The coming Thursday is expected to see the first rate hike since 2007.

Jan Juchelka to head Komerční banka from August

Jan Juchelka, the head of corporate and investment banking of the last five years at Société Générale (SG), the parent of Komerční banka, will become the new Chairman of the Board and CEO of Komerční banka (KB) in early August. He will succeed in both positions Albert Le Dirac’h who has steered KB for the past four years and whose tenure expires on 2 August 2017.