Czech lender Komercni Banka forecasts stronger loan growth in 2026

Komercni Banka as

30/04/2026 06:47

PRAGUE, April 30 (Reuters) - Czech lender Komercni Banka BKOM.PR forecast stronger lending growth this year on Thursday and confirmed its outlook to pay out 80% of profits earned in 2026 as dividend, while reporting a drop in first-quarter net profit.

Chief Executive Jan Juchelka said client deposits grew, consumer lending accelerated and new mortgage loan volume was near a record.

"However, intense competition in the market has thus far constrained the conversion of this positive development into accelerated revenue growth," he said.

Komercni Banka, majority owned by France's Societe Generale SOGN.PA, quarterly net profit was 4.01 billion crowns ($191.64 million), a 4.2% drop, versus Reuters poll average estimate of 4 billion crowns.

Net banking income was flat at 9.14 billion crowns, below Reuters poll estimate of 9.42 billion crowns.

Net interest income was 6.44 billion crowns, below average estimate of 6.61 billion crowns.

Bank recorded a net release of loan loss provisioning while analysts expected a slight creation.

Komercni Banka reiterated it expected a return to loan loss provisioning creation this year, but lower than previously forecast.

It forecast high-single-digit lending growth in 2026, versus a previous outlook of mid- to high-single digits. Lending rose 7.6% in the first quarter.

Revenue growth was seen at mid-single digits, versus expectations of mid- to high-single digits seen in an outlook in February.

The bank, the country's third largest by assets, had previously been paying out 100% of profit as dividend but lowered the ratio in February on expectations of stronger lending.

($1 = 20.9250 Czech crowns)

(Reporting by Jason Hovet; Editing by Harikrishnan Nair)

((jason.hovet@thomsonreuters.com;))