Komercni banka posted an unconsolidated IAS 2001 net profit of CZK 2.53 bil., which met the market consensus (Reuters), and was above our forecast of CZK 2.21 bil. The profit is even more satisfactory given that it was achieved in spite of unexpectedly high provisioning in 2001 (CZK 6.16 bil.), which suggests a conservative attitude on the part of the new KB owner, Societe Generale. The high provisions for CDOs might lessen the uncertainty regarding this equity, possibly improving the perception of the stock by investors.
More details on the CDO portfolio as well as on the bank’s new business strategy will be published together with audited consolidated IAS results for 2001 on Friday, March 29.
(Jan Hajek)