This report analyses the performance of Komercni Banka for the 2018. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the Bank.
The key highlights are:
Komercni Banka made a net profit of CZK 14,846 mil in 2018, down 0.563% when compared to the previous year. Total revenues increased 3.68% yoy to CZK 32,203 mil, ROE amounted to 14.6% and the NPL ratio stood at 2.71%. Komercni Banka stock depreciated by 7.43% in the 2018 to CZK 847 per share and the stock traded at a 12-month trailing PE of 10.8x and PBV of 1.56x based on the closing price at the end of the year.
Revenues increased 3.68% yoy to CZK 32,203 mil in 2018. Interest income formed 70.5% of total revenues with the net interest margin increasing 1.86 bp to 2.20% of total assets. Fees added a further 18.7% to total revenue generated in 2018, down from an average of 19.8% as seen in the previous two years.
Operating costs grew by 9.41% yoy to CZK 14,634 mil, so cost to income ratio reached 45.4%, up by 2.87% compared to the previous two years. Staff accounted for 53.5% of total operating expenditures. At the end of 2018, the bank operated a network of 379 branches and 8,411 employees.
Loans and deposits grew by 4.15% and 6.61% yoy respectively, so loan to deposit ratio reached 76.7% at the end of 2018. That’s down from 78.5% the previous year. Equity reached 9.75% of assets and capital adequacy ratio amounted to 18.5% at the end of 2018.
NPLs were 2.71% of total loans at the end of the year. Provisions covered 59.4% of non-performing loans
Komercni Banka stock traded at CZK 847 per share at the end of 2018 implying a market capitalization of USD 7,165 mil. This put stock at a 12-month trailing price to earnings of 10.8x and price to book value of 1.56x as of the end of 2018.
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