Komercni banka’s (KB) net profit grew by 75.9 percent yr/yr to CZK 3.5bn in Q1 and total revenues added 27.7 percent to CZK 9.5bn, which was due to a low comparison base in Jan-March last year, according to unaudited consolidated results the bank published on its website today.
The first quarter of the previous year was influenced by significant restrictions on people’s mobility and on some business activities, said the bank.
Operating expenses were up by 9.8 percent, mainly driven by a 26 percent increase in the regulatory levy to the Resolution Fund.
Personnel expenses were higher by 2.6 percent, even as the average number of employees decreased.
Lending to clients climbed by 8.1 percent to CZK 750.7bn. The volume of outstanding housing loans from KB and its building society Modra pyramida expanded by 9.0 percent. Consumer lending increased by 4.8 percent. Lending to businesses and other clients was up by 7.5 percent.
Deposits from clients increased by 3 percent year on year to CZK 1,015.1bn. The clients were often switching their deposits from current accounts to better yielding term and savings accounts or even to mutual funds, the bank said.
The volume of the KB group clients’ assets in mutual funds, pension savings, and life insurance rose by 7.6 percent to CZK 206.9bn.
Net interest income was up by 37 percent at CZK 6.9bn, driven by growing business volumes and higher yields from reinvestment of liabilities and capital.
Net fee and commission income improved by 8.7 percent to CZK 1.5bn.
KB’s annual general meeting held in April 2022 approved the proposal for the distribution of profit, including a dividend payment in the amount of CZK 8.3bn, which represents CZK 43.80 per share, before taxation, the bank said.
KB is a parent company of the KB group and is part of international group Societe Generale. It is a major bank on the Czech market as well as in the region of Central and Eastern Europe. It is 60.4 percent owned by France’s Societe Generale. KB is listed on the Prague Stock Exchange.
Source: Komercni banka and CTK
