Komercni Banka quarterly profit boosted by provisions release

Komercni Banka as

31/07/2025 06:32

PRAGUE, July 31 (Reuters) - Czech lender Komercni Banka BKOM.PR reported a bigger-than-expected 30.6% year-on-year rise in second-quarter net profit on Thursday, lifted by rising net interest income and the release of loan provisions.

Attributable net profit in the quarter reached 4.62 billion Czech crowns, above the median estimate of 4.04 billion crowns, according to a Reuters poll.

The bank reported a net release of loan provisions of 529 million crowns, while analysts expected a slight net creation.

The country's third largest lender, which is majority-owned by Societe Generale SOGN.PA of France, said it expected its cost of risk, reflecting the creation or release of loan-loss provisions, would be around zero basis points for the full year, supported by provision releases.

It slightly adjusted its earnings outlook, expecting revenue to grow this year at a low- to mid-single-digit pace, whereas it had predicted mid-single digit growth after the first quarter.

Growth will be largely supported by an expected net interest income rise at a mid-single digit pace, the bank said.

The increase in interest income was helped in the first half by growing lending and a lower cost of funds as the central bank has halved its main interest rate since the end of 2023.

 (Reporting by Jason Hovet; Edited by Harikrishnan Nair)

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