Komercni Banka Q1 profit drops on provisioning; lending grows

Komercni Banka as

03/05/2024 07:02

PRAGUE, May 3 (Reuters) - Czech lender Komercni Banka
 BKOM.PR , majority owned by Societe Generale, reported a 21.3%
drop in first-quarter net profit mainly due to provisioning, the
bank said on Friday.
    Net attributable profit dropped to 2.8 billion Czech crowns 
($120.51 million), below expectations of 3.17 billion crowns in
a Reuters poll.
    The bank's provisioning reached 485 million crowns, a
reversal from a provision release of 432 million crowns year
ago. Analysts had expected a cost of 177 million crowns. 
    "Net creation of credit risk allowances related
predominantly to the portfolios of loans to consumers and small
businesses segments as well as to a very limited number of
medium-sized corporate client situations," the bank said.
    Komercni's group lending rose by 4.6%, while client deposits
expanded by 7.2%.
    Operating profit rose by 1.7% to 4.0 billion crowns, helped
by a 4.1% drop in operating expenses.
    Net interest income dipped by 1.1% to 6.28 billion, in line
with expectations.
    "Net interest income declined slightly, as costs of funds
were elevated and there were increased interest costs related to
the volume of new liabilities mandated by regulation," Komercni
Banka said. 
    The bank said it planned a dividend of 100% of 2024 net
profit, same ratio as in the 2023 payout.


($1 = 23.2340 Czech crowns)

 (Reporting by Jan Lopatka; Editing by Mrigank Dhaniwala)
 ((jan.lopatka@thomsonreuters.com; +420 234 721 614; Reuters
Messaging: jan.lopatka.thomsonreuters.com@reuters.net))