REG - Komercni Banka - KB expects material impact from the CNB’s decision

Komercni Banka asAnnouncement

08/09/2023 11:15

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RNS Number : 8886L  Komercni Banka  08 September 2023

Komercni banka, a.s. http://www.kb.cz/en (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 8  September 2023

The Information is available also at the following links:

https://www.kb.cz/en/about-the-bank (https://www.kb.cz/en/about-the-bank)

https://www.kb.cz/en/about-bank/for-investors
(https://www.kb.cz/en/about-bank/for-investors)

 

 

Regulatory information

 

 

Komerční banka expects material impact on its result from the decision of
the Czech National Bank to cancel remuneration of the required minimum
reserves

 

Prague, 8 September 2023 - 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

Komerční banka Group expects a material impact into its financial result
from the decision of the Czech National Bank (CNB) announced on 7 September
2023 to cancel remuneration of required minimum reserves held by banks at the
CNB, with effect from 5 October 2023. Until then, the required minimum
reserves are remunerated by the two-week repo rate announced by the CNB
effective in the so called maintenance period, currently at 7%.

 

According to a decree of the CNB, banks are required to maintain a prescribed
amount of its fund on accounts with the CNB (required minimum reserves). The
reserve base shall comprise liabilities with a maturity of up to and including
two years, in the form of deposits and received loans, issued non-marketable
securities and issued other debt securities, net of liabilities to other
obliged entities. The required minimum reserves amount to 2% of the reserve
base.

 

Obliged entities for required minimum reserves in Komerční banka Group
comprise KB and Modrá pyramida stavební spořitelna. The stipulated amount
of the required minimum reserves for the current maintenance period (from 7
September to 4 October 2023) stands at approximately CZK 19.6 billion.
Cancelling of remuneration of the required minimum reserves thus represents a
decrease in interest income of KB Group by approximately CZK 115 million per
month, in comparison with the currently applicable remuneration at the
two-week repo rate of 7%.

 

 

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