According to an interview in Czech HN Daily with Laurent Goutard, Komerci Banka CEO, the bank plans to further extend its network by 20-25 new branches to reach 400 in 2007 (360 as of 3Q06). The CEO has also stated that the bank’s priority is to use big potential of Modra Pyramida building society. KB also plans to increase market share in mortgage lending to 25% from current 20%.
Our view:
In our opinion branch expansion plans and potential of Modra Pyramida should be already known to the market, however given the lack of the corporate newsflow and triggers for the stock, this news can have a positive impact on the stock price today.