KB chairman Alexis Juan said KB is committed to its troubled insurance subsidiary Komercni pojistovna, and to expanding the sale of insurance products. KB is now conducting an audit of the company, which should be completed in the first quarter of next year. Further steps will depend on the results of the audit. Given that further provisioning may follow as a result of the audit (KB created almost CZK 300 mil. in provisions for its equity investment in the insurance subsidiary in Q3, which contributed to poorer-than-expected KB profits), this may be seen as slightly negative news for KB stock.
(Ondrej Datka)