Komercni Banka announced that the European Bank for Reconstruction and Development (EBRD) is extending a €20 million (CZK 630m) credit line to KB to support SMEs in the Czech Republic. The development of SME loans is a key priority for KB. Currently KB is the lender in this segment with an approximate market share of 40%. Credits to SMEs increased 26% y-o-y to CZK 44.2bn by September 2004. We believe the SME segment offers one of the best loan-growth potentials within the corporate sector, with relatively high margins (between 2.5% and 3%) and low risk. Neutral to positive.
Source: CTK
Tomáš Gatěk, Patria Finance