Q4 2024 Komercní banka as Earnings Call
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well, come from commercial and thank you for
sharing your time with us today. It is the 6th of February 2025, and we are going to discuss the results of CEO, banca group for the full year, and the fourth quarter of 2024
uh,
Please note that this call is being recorded, our speakers. Today will be ya, chairman of the board.
And CEO of commerciali, banca, uh, Chief Financial Officer and chief risk officer.
Standing by in case of uh, your questions are operating officer Margot Simpson. Chief digital officer had of written. Thank you.
To. All right. Uh, thank you everyone.
Issue. Can you please unmute yourself, sorry.
Sorry, did you hear anything or nothing?
Nothing nothing from. All right. So, I will repeat my opening speech. Thank you very much. Uh,
Welcome everyone, thank you for, uh, giving us the opportunity to, uh, stay in front of you together. With the leadership team of Kuma, and read you through the presentation of, uh, Q4 2024 results, and the entire year, 2024 results, before we jump into the pages. Just let me say that we highly appreciate your work. When, uh,
Covering, uh, kishes. And also, uh, having, uh, the opportunity to see, you know, the, uh, the reaction of the market on today's, uh, presentation. We are very glad that, uh, that, uh, uh, for, for, for this type of, for, for this level of trust. Speaking about, uh, cam Bank in 2024, we were uh, more or less all over the place. We were uh, still at the beginning of the year, uh, in the first quarter, in charge of paying uh, secured. Um,
Uh, receivables for the clients of, uh, of Burbank on behalf of the guarantee fund of of the financial markets here. Uh, we started, uh, beginning of the year, uh, huge migration, uh, wave of our retail clients, from the old world to the new world. And I'm glad to say that we achieved more than 1 million users in the application KB plus. We continued our, uh, intensive investments in to, uh, Technologies and Innovations. And uh, in parallel with that, we were able to grow uh, The NPS. Um, also on the new application, um, in, uh, in September this year in in September 2024, there were huge floods in the country. We were at hand to our clients, either retail or corporate uh in um performing the repayments in
Uh, taking care of uh the insurance claims together with our sister company coma. And uh we donated almost 15 million accounts through our foundation uh, of Kuma in 2024, we remained 1 of the largest taxpayers in the country. And uh in 2024, we have also made uh, significant steps forward in the transformation of retail banking from organizational, and
Operational point of view as well as in the uh transformation of Madara building saving company. Which in fact, became the only Center of expertise for housing loans, in our group and took over the entire responsibility. For the customer uh Journey related to housing
So let me, uh, invite you to the kickoff page. I will be very brief.
All the hard work, which I have just, uh, described, uh, was translated into growth of deposits of our clients by 2.3% on year-over-year basis, client loans, by 2.5% inside, which the new sales of housing, loan sales, uh, totaled at a 34.1%, which means that the clients are back to ask for housing loans mortgages.
And the clients are back. Uh, reacting also on the decreasing prices other assets under management, uh, grew by 11% in total inside this category the mutual funds by more than 20%. So
Continuous, uh, Dynamic growth of, um, the assets under management outside the balance sheet of, of the bank, insurance premium written, uh, the life insurance grew by 2.9% out of which risk life insurance by 13% and the non-life insurance by 18% on year-over-year comparison to like this, that double digit growth and it just confirms strong position of coma at the check Market, remained to 1 of the best capitalized, uh, companies and banks in the, in the economy. Uh, the total Capital ratio remained at 18.77%, quartier 1 17.64,
From liquidity perspective again, uh, confirmation of strong position of LCR 166%, uh, nsfr respectively, 131%, uh, all of this, uh, inside. Let's say very comfortable, uh, territory of long to deposit ratio of 82.9%.
It uh was transited into very strong income statement, the group, net income is at level of 17.2 billion uh, Czech Koruna. Uh, we contributed uh, in the fourth quarter which was
The the biggest or let's say the strongest quarter ever in, uh, in the history of the bank from revenues uh, perspective and 1 of the strongest for net profit, uh, contribution, uh, uh, uh uh uh uh point of view. So the contribution to the total, net income was 4.7, um, uh, last last last year, the 44 2024 earning per share 91.3%, sorry 91.3 Czech Koruna.
um,
Which we, uh, uh, which we, uh, proposed as a board of directors of Comey banca to be entirely distributed in the form of dividends.
Cost of risk remains extremely low. The the high quality of our assets, uh, brought us to 11 basis points. Uh, at the end of the year of 2024 cost to income ratio uh, was compressed below 50 at the level of 48.2%. Whereas, in the fourth quarter it was at the level of 43.6. Roe on Standalone basis delivered by KB to the markets is 13.7%.
and,
uh,
1%.
As part of its decision.
Please. Can you confirm you can hear me? Because
It's changing how the the picture. I don't see the presentation now.
So let me just use a, we can see the presentation and we can hear you.
I don't see the presentation. Sorry I need to open another.
Yeah, I can see it now.
So you can still remain in the highlights. Okay? So here, um, just last sentence as part of our decision making process, we finalized, uh, the disposal of headquarter building in the center of Prague, the Vlog can 42, the buyer was city of Prague, so we are uh, um, confident the the, the house will be serving the proxy citizens down the road, obviously, whatever. You see as a reported number versus recurring number
The, uh, the the, the difference between those 2, uh, goes to the account of the, uh, of the net profit realized through this disposal.
uh, grew its uh,
It's number of, uh, number of clients migrated from the old to the new world above 1 million, users. Also, uh, awarded as a responsibility, responsible Bank of the year in 2024, uh, was uh, uh, um, uh,
The supervisor Board of our bank re-elected, uh, my person, uh, for the, for the next term starting, uh, August August 5 of 2025. And as I mentioned already, we are giving back to the market, the entire, uh, profit. The entire net profit subject to the approval of supervisory board. And, uh, the board and, and the
General assembly of the shareholders. You can move to the next page, please.
M, economic environment. Uh, I would say, was framed by pretty well known, um, pretty well known, uh, indicators. Um,
IE rather uh mediocre growth. Uh but still growth of check GDP uh accompanied by um a continuously tight labor market with very low levels of unemployment below 3%.
Inflation. Uh, seems to be, uh, under control. If if I may say back to the corridor, um, where uh, the Central Bank wants to see it. And is further compressing, uh, as as uh, and being followed by, um, the reaction of Czech National Bank, um,
To the levels of of of 4%, uh, which is minus 300 bibs on year year over year, uh, comparison Czech Koruna remained, uh, with a Euro at more, or less flat at 25.2, uh, chrona per per Euro and 24.2 uh, Czech Koruna per USD. So on on that front, uh, no big drama, uh, has been happening and uh um, let's say this level of check ground is somehow uh at least helping the um,
Uh, the traditional exporters on amongst our corporate corporate clients.
We can probably move to the next page.
which is related, uh, to