REG - Komercni Banka - Announcement on acceleration in transformation

Komercni Banka asAnnouncement

05/01/2021 07:01

RNS Number : 5186K
  
Komercni Banka
  
04 January 2021
  
 

Komercni banka, a.s. http://www.kb.cz/en

Prague 1, Na Prikope 33, building identification number 969, Post Code 114 07

Identification No.: 45 31 70 54
LEI Code: IYKCAVNFR8QGF00HV840
incorporated in the Commercial Register maintained with the Municipal Court in Prague,

section B, insert 1360
Disclosed on 4th January 2021 at 18:00 p.m. CET
 
Detailed information is available at the following link: https://www.kb.cz/en/about-the-bank/for-investors-directory
 
Announcement on acceleration of certain steps in strategic transformation
 
Prague, 4 January 2021 - Komerční banka, a.s., with its registered office at Na Příkopě 33/969, 114 07 Prague 1, registration No. 45317054, entered in the register of companies maintained with the Metropolitan Court of Prague, section B, file No.1360 (hereinafter also Komerční banka or the Bank), announces that
 
In the context of continuing pandemic situation with significant negative impact on economic activity in the Czech Republic, including activities of some clients of Komerční banka, the Bank's management has decided to take additional measures reinforcing its operational efficiency and economic resilience. 
During first half 2021, Komerční banka will reduce the number of employees (recalculated to full-time equivalent number) by approximately 3.5%. More than two thirds of this reduction will be implemented at the head office. It is expected that approximately 20% of employees from canceled positions will find another placement in the Bank. In accordance with applicable labour regulations, KB's trade union organization has been informed on the staff restructuring plan.
The extraordinary cost incurred in relation to this reduction, and mainly to severance payments to outgoing employees, will reach CZK 76 million. A provision covering this cost, in the same amount, has been created and accounted for in Personnel expenses in the fourth quarter 2020. 
Furthermore, the Bank has recognized extraordinary expenses of CZK 38 million related to reduction of the branch network, including for termination of rental contracts, accelerated depreciation or impairment of rights of use.  
The above mentioned measures represent a partial acceleration of steps envisaged in the KB Change 2025 strategic plan and presented to investors on 5 November 2020, and it is not amending any of the presented ambitions of the Plan or the outlook for development of operating expenses of KB Group in 2020 provided in Komerční banka's 2020 Half-Yearly Report.  
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
MSCBIMPTMTJMBPB