Q3 2024 Komercni Banka as Earnings Call Transcript
Key Points
- Komercni Banka AS (KMERF) reported a strong net income of CZK12.5 billion for the first nine months of 2024, slightly higher than the previous year.
- The bank achieved a significant growth in assets under management, with a 13.7% increase, driven by a 25% growth in mutual funds.
- Komercni Banka AS (KMERF) maintained a strong capital position with a core Tier 1 ratio of 17.9% and a liquidity coverage ratio of almost 170%.
- The bank successfully migrated over 800,000 clients to its new digital platform, KB+, and acquired approximately 140,000 new clients.
- The cost of risk remained low at 14 basis points, reflecting high asset quality and effective risk management strategies.
- Net interest income declined by 3.3% year-over-year, impacted by increased costs of senior nonpreferred loans and the cancellation of minimum obligatory reserves.
- The structure of deposits did not improve as expected, with current accounts growing slower than remunerated deposits.
- The bank faced a one-off unexpected default in the SME segment, impacting the cost of risk for the quarter.
- The transformation project, while progressing, has incurred significant costs, estimated in the low teens of billion Czech crowns over five years.
- The macroeconomic environment remains challenging, with the Czech economy growing at a modest pace and companies postponing investments due to external uncertainties.
Good afternoon, and good morning, ladies and gentlemen. Welcome from Komercni banka, and thank you for sharing your time with us today. (technical difficulty) 2024 and we are going to discuss the results of Komercni banka Group for 9 months and for the third quarter of 2024. Please note that this call is being recorded. Our speakers today will be Jan Juchelka, Chairman of the Board and Chief Executive Officer of Komercni banka; Jiri Sperl, Chief Financial Officer; and Didier Colin, Chief Risk Officer. And standing by in case you have questions for them are also Jitka Haubova, Chief Operating Officer; Margus Simson, Chief Digital Officer; Miroslav Hirsl, Head of Retail Banking; and David Formanek, Head of Corporate and Investment Banking. (Operator Instructions) Now let me ask Mr. Juchelka to start with the presentation. Thank you.
Okay. Hello, everyone. Thank you for spending your time with us. We are keen today
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