KB bank sees its net profit rise by 0.5 pct to Kc11bn in Q1-Q3

Prague, Nov 6 (CTK) - Komercni banka (KB) raised its net profit annually by 0.5 percent to Kc11bn in Q1-Q3, the figure growing by 0.9 percent if adjusted for one-off items in 2018 and 2019, and net operating revenues added 3 percent to Kc24.4bn, the bank said in a press release today.

Loans and client deposits grew, too, KB said.

Lending to clients was 4 percent higher at Kc654bn, of which housing loans added 3.5 percent to Kc281.7bn and consumer loans rose by 1.2 percent to Kc39bn.

Lending to businesses posted a rise of 4.8 percent to Kc333.2bn.

Deposits from clients recorded an annual hike of 6.3 percent to Kc860.2bn.

The rise in operating revenues was driven by higher net interest income, which added 6 percent in annual terms, the bank said.

Net fee and commission income was flat, even though income from fees for corporate services rose fast. "... a growing volume of client assets under management and clients' upgrading to premium account packages also contributed positively," the bank added.

In contrast, fees for transactions and loans dropped, and net gains from financial operations fell by 10.0 percent, the bank said.

Operating expenditures excluding one-off items from last year, which included creation of a restructuring reserve and release of a reserve for corporate services, rose by 2.8 percent to Kc11.2bn.

KB group's total assets added 15.8 percent to Kc1,227bn in the January-September period.

Liabilities grew by 17.3 percent to Kc1.122bn compared with the end of last year.

Komercni banka's results met the market's expectations but were not impressive compared to the dynamic growth of Ceska sporitelna and Moneta Money Bank, Capitalinked.com analyst Radim Dohnal told CTK.

Komercni banka's net interest margin is lower than that of the two other banks, he said, adding that all three have seen a decline in the margin, but KB is currently the only one with a 2 percent net interest margin.

Before 13:00, Komercni banka's shares were down by 0.6 percent on the Prague Stock Exchange, trading at Kc786 apiece.

Komercni banka, which is one of Czechia's largest banks, is majority owned by French bank Societe Generale.

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