This report analyses the performance of Komercni Banka for the 2Q2019. 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 4,036 mil in the second quarter of 2019, up 7.48% when compared to the previous year. Total revenues increased 5% yoy to CZK 8,216 mil, ROE amounted to 15.6% and the NPL ratio stood at 2.30%. Komercni Banka stock depreciated by 5.21% in the second quarter of 2019 to CZK 891 per share and the stock traded at a 12-month trailing PE of 11.1x and PBV of 1.68x based on the closing price at the end of the quarter.
Revenues increased 5% yoy to CZK 8,216 mil in the second quarter of 2019. Interest income formed 71.4% of total revenues with the net interest margin increasing 1.24 bp to 2.02% of total assets. Fees added a further 18.7% to total revenue generated in 2Q2019, down from an average of 19.0% as seen in the previous two years.
Operating costs dropped by 0.283% yoy to CZK 3,524 mil, so cost to income ratio reached 42.9%, down by 0.433% compared to the previous two years. Staff accounted for 55.0% of total operating expenditures. At the end of second quarter of 2019, the bank operated a network of 359 branches and 8,144 employees.
Loans and deposits grew by 1.47% and 4.25% qoq respectively, so loan to deposit ratio reached 71.1% at the end of 2Q2019. That’s down from 73.6% the previous year. Equity reached 8.50% of assets and capital adequacy ratio amounted to 19.0% at the end of the second quarter of 2019.
NPLs were 2.30% of total loans at the end of the quarter. Provisions covered 59.9% of non-performing loans
Komercni Banka stock traded at CZK 891 per share at the end of second quarter of 2019 implying a market capitalization of USD 7,572 mil. This put stock at a 12-month trailing price to earnings of 11.1x and price to book value of 1.68x as of the end of 2Q2019.
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