During 2Q13 results conference call Komercni updated its 2013 outlook. It still expects reported revenues to decline 6% y/y in 2013. In more detail the bank commented that stable 2Q13 net interest margin (NIM) in 2Q13 in q/q comparison shows KB’s capacity to accommodate in the low-interest environment. Nevertheless subdued loan demand, especially for high margin consumer loans, does not allow the bank to increase its loan/deposit ratio and therefore the bank has to reinvest in low yielding government bonds. As a result the bank sees NIM to decline further 3-5 bps in 2H13 compared to the first half. Also, the bank misses the interest income from higher yielding piigs bonds, which the bank completely disposed of in 1H13. As for the cost of risk, KB sees 1H13 cost of risk as below normal levels due to low inflows into default and good payment discipline. It may not be repeated in 2H13. Retail cost of risk were lower thanks to mortgages which is positive and supportive for coming quarters. /Overall, the management sounds rather more cautious than optimistic for the rest of the year and there we consider the rhetoric as slightly negative