Net interest income increased by 42.2 percent to 14.2 billion crowns. “Volumes of loans and deposits increased and market interest rates were significantly higher year-on-year, which supported returns from reinvestment of deposits and the bank’s own resources,” KB said. Net income from fees and commissions increased by 6.3 percent to almost three billion crowns. People more often they pay by card.
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Loans to clients grew by 8.7 percent year-on-year to 769.4 billion crowns. The volume of housing loans was eight percent higher, of which the volume of mortgages grew by 5.2 percent to 266.2 billion crowns. Consumer loans then increased by 4.8 percent and reached a total of 34.5 billion crowns.
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The total volume of deposits increased by 2.7 percent year-on-year to 1.03 trillion crowns. “Clients placed their funds from current accounts in more profitable term and savings deposits, as well as in mutual funds,” the bank said. However, deposits from citizens decreased by 0.8 percent year-on-year, while deposits from corporate and business clients, on the other hand, increased by 7.7 percent.
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At the end of June, the bank had approximately 2,256,000 clients. In a year-on-year comparison, this was an increase of 12,000 clients.
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Competition also grew
For the whole year, Komerční banka expects revenues to grow by more than a fifth compared to 2021. It considers the further escalation of the war in Ukraine, a longer or deepening shortage of energy raw materials and the possible return of pandemic restrictions and closure as key risks. However, KB’s management expects this year’s profit to be sufficient to cover capital needs and pay dividends.
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Komerční banka is the parent company of the KB Group and part of the international Société Générale group. It is among the leading banking institutions in the Czech Republic and in the region of Central and Eastern Europe. The main shareholder of KB is the French Société Générale with a share of 60.4 percent. The bank’s shares are traded on the Prague Stock Exchange.
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Société Générale reported a loss of EUR 1.48 billion (CZK 35.5 billion) in the second quarter. In the comparable period last year, it managed a profit of 1.44 billion euros. The loss was caused by the departure from the Russian market, due to which the bank recorded a loss of 3.3 billion euros. However, the results exceeded the estimates of analysts who, according to Reuters, expected a loss of over two billion euros.
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The profits of competing banks also grew in the first half of the year. In the case of Česká spořitelna, it was 67 percent year-on-year to 11 billion crowns. Moneta Money Bank’s net profit rose by 101 percent to 2.9 billion crowns, and Raiffeisenbank’s by 78 percent to more than three billion crowns. Czech and Slovak UniCredit Bank reported a net profit of 4.2 billion crowns for the first half of the year, which is an increase of 45 percent.
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