Komercni banka reported its audited FY2003 IFRS results yesterday - the unconsolidated results confirmed preliminary figures released a month ago (a net profit of CZK 9.26bn) and the consolidated figures came out in line with our estimates:
CZK m 2003 2002 change
Net interest income 12,166 12,691 -4.1%
Profit before provisions 10,469 10,023 4.4%
Pretax profit 12,896 11,781 9.5%
Net profit 8,669 9,026 -4.0%
EPS (CZK) 228 237 -4.0%
Separately, KB indicated that it could pay higher dividends out of its 2003 net profit compared to last year and it will likely increase the pay-out ratio from 17% last year. The bank is targeting a POR of 30-35% in the long term.
Based on this dividend policy, the DPS out of the 2003 net profit would reach CZK 59, assuming a POR of 33% of the 2003 recurring profit, which was stated by KB at CZK 6.8bn (or CZK 178 per share). Note however that given KB's overcapitalization, excess of liquidity, expected solid earnings growth, and declining financial leverage and ROE, the bank may be able to afford to pay significantly higher amount.
Jan Hájek, Patria Finance