Komercni banka’s H1 2001 IAS net profit of CZK 2.72 bil. beat our as well as the market’s expectations. Pretax profit, of CZK 3.23 bil., was exactly in line with our forecast though moderately lower than what the market expected (CZK 3.38 bil.).
Operating profit of CZK 4.9 bil. and net provisions of CZK 1.66 bil. were largely in line with market expectations. Total operating revenues of CZK 11.4 bil. exceeded our forecast (especially fees and commissions income), but the 2.9% y-to-y growth was offset by higher-than-expected personnel and administrative expenses.
Positive was the 2.1% q-to-q increase in primary deposits (to CZK 289 bil.), following a decline in Q1 2001, and the 2.6% growth of loans in H1 2001. However, total assets stood at CZK 402 bil.
Higher-than-expected operating expenses somewhat dampened the positive effect of increased operating revenues. Nevertheless, the bottom-line profit outperformed expectations, as KB utilized a tax carry-over that reduced the effective tax rate.
| CZK mil. | HI 0IA | HI 00A | change |
| Net interest income | 6,122 | 6,041 | 1,3% |
| Net income from fees and commisions | 4,027 | 3,078 | 30,8% |
| Other operating revenues | 1,212 | 1,919 | -36,8% |
| Total operating revenues | 11,361 | 11,038 | 2,9% |
| Total operating expenses | -6,474 | -6,266 | 3,3% |
| Profit before provisions | 4,887 | 4,772 | 2,4% |
| Provisions | -1,655 | -4,483 | -63,1% |
| Pretax income | 3,232 | 289 | 1018,3% |
| Net income | 2,715 | -1,061 | n.m. |
(Jiří Soustružník)