Czech lender Komercni Banka lowers dividend payout ratio for 2026 (updated)

Komercni Banka as

06/02/2026 10:58

Adds CFO comment on dividend policy in paragraph 5, share price in paragraph 6

PRAGUE, Feb 6 (Reuters) - Czech lender Komercni Banka BKOM.PR reported a nearly 5% rise in net profit in 2025, paying out 100% of earnings for a third straight year but signalling it expected to lower its payout ratio from this year.

The bank, the country's third largest and majority-owned by French bank Societe Generale SOGN.PA, said net profit rose to 18.1 billion crowns  ($880.56 million), helped by higher lending and a release of loan-loss provisions during the year.

Keeping its temporary policy to pay 100% of profit, it proposed a 95.60 crown per share dividend for 2025, up from 91.3 crowns per share for 2024.

It said it planned to propose a dividend for 2026 based on 80% of attributable profit.

Chief Financial Officer Etienne Loulergue said the change to the 100% payout policy - which the bank had introduced because of strong capital generation - was mainly due to an expected acceleration in lending activity.

NET RELEASE OF LOAN PROVISIONS

Shares in Komercni Banka fell as much as 2.5% on Friday and traded 1.2% lower at 1,249 crowns at 1022 GMT, having gained nearly 40% in the past 12 months.

Net attributable profit in the fourth quarter fell almost 5% to 4.47 billion crowns, roughly in line with a Reuters poll estimate of 4.48 billion crowns. Net fees were down sharply versus a year ago, when a bump in cross-selling fees had led to a higher-than-usual result.

A net release in provisioning totalling 1.5 billion crowns in 2025 helped the bank's profits.

Komercni Banka forecast a return to a net creation of loan loss provisions this year. It said its lending should grow at mid- to high-single digit percentage rates in 2026.

Revenue growth was forecast to accelerate to a mid- to high-single digit rate also this year, the bank said in its outlook, with all business areas contributing.

($1 = 20.5550 Czech crowns)

 (Reporting by Jason Hovet; Editing by Sonia Cheema and Elaine Hardcastle)

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