Last year, Komerční banka’s net profit rose by 56 percent to 12.7 billion crowns, and will share it with shareholders. The Board of Directors proposes a dividend of CZK 43.80 per share, for a total of CZK 8.3 billion. The bank will decide on the retained dividends from the covid years only in the second half of this year, the financial house announced.
Komerční banka’s total revenues increased by 5.7 percent to 31.3 billion crowns last year. Operating costs increased by 0.7 percent to 15.1 billion crowns. The net profit of one of the largest banks in the Czech Republic rose by more than half to almost 13 billion crowns. The bank announced that these are as yet unaudited consolidated results.
The Board of Directors proposed a dividend of CZK 43.80 per share in the total amount of CZK 8.3 billion. Next steps to release excess capitalwhich the bank detained due to pandemic dividend restrictions in 2020 and 2021, will consider in the second half of this year after the completion of regular regulatory stress tests. The majority owner of the bank is the French Société Générale.
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“We have seen a very solid increase in the volume of our business with clients, which has also supported revenue growth. Despite rapid inflation and an increase in regulatory fees, we kept operating expenses stable. The risk profile of the loan portfolio remains very strong, even though the current environment is challenging for many companies, ”said Jan Juchelka, Chairman of the Board of Directors and CEO of KB.
Loans and deposits grew
All types of revenues contributed to the increase in total revenues. Net interest income increased by two percent to 21.8 billion crowns, due to the growth in the volume of loans and deposits, and later in the year also due to normalizing market interest rates. Net fees and commissions rose by 9.6 percent to 5.7 billion crowns, according to the bank is higher transaction activity of clients, growth of clients’ investments in mutual funds or corporate demand for services on the capital markets and consulting. The net result from financial operations of 3.6 billion crowns was 25.9 percent higher year-on-year.
“Operating costs remained under strict control, despite faster inflation and higher regulatory fees, mainly to the Resolution Fund,” the bank said. Personnel costs decreased slightly and administrative costs remained almost the same. The average number of employees decreased by 4.6 percent to 7687. Depreciation and amortization increased year-on-year in connection with investments in digitization, partly due to a shrinking building portfolio.
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Loans to clients last year rose by 6.9 percent to 738.9 billion crowns. Of this, the volume of housing loans provided by KB and Modrá pyramida increased by 9.5 percent. Consumer loans provided by KB and ESSOX added 1.9 percent. The volume of loans to enterprises and other entities was five percent higher year-on-year. Client deposits rose by 6.2 percent year on year to 948.6 billion crowns.
Total equity increased by 8.3 percent year on year to 126.8 billion crowns due to the generated profit and limited dividend payments due to CNB measures. The bank stated that The Board of Directors intends to return to the dividend policy of paying 60 to 70 percent of the profit generated in the previous year, which was interrupted in accordance with the restrictions adopted by the regulator on all Czech banks in March 2020 after the coronavirus pandemic.
For 2022, the Board of Directors approved a dividend policy of 65 percent of the consolidated net profit attributable to KB shareholders, which will be generated in 2022. distribution in the form of a dividend of another up to 55 crowns per share, which with a planned dividend of 43.80 crowns would amount to almost 100 crowns per share this year, ”said Jiří Kostka from Fio banka.
Last year, Moneta earned four billion crowns and caught up with PPF
Last year, Moneta Money Bank increased its net profit by 53 percent to CZK 3.98 billion. The bank said it improved its results due to higher net interest income, stable operating costs and lower risk costs. In December, shareholders agreed to a merger with the banking part of PPF, including the method of settling the transaction.
Majority dividends will flow to foreign countries
At the end of last year, Komerční banka had 58,444 shareholders, up 1,443 year-on-year. Of these, 52,823 were individuals from the Czech Republic, the share of strategic shareholder Société Générale remained unchanged at 60.4 percent. Minority shareholders held 39 percent and KB held 0.6 percent of its own shares.
For this year, the bank expects double-digit growth in operating income, primarily supported by net interest income. Net fee and commission income should grow at lower percentages. Operating costs should remain below inflation.
Among other large banks, Moneta Money Bank published its results for 2021, which last year increased its net profit by 53 percent year-on-year to 3.98 billion crowns, and Raiffeisenbank in the Czech Republic, whose net profit rose by 119 percent year-on-year to 4.69 billion crowns, and Czech and Slovak UniCredit Bank, which reported a 39.1 percent increase in profit to 6.62 billion crowns. Société Générale has a record net profit of 5.6 billion euros (136 billion crowns) last year.
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