Komern banka presented results for 1Q, certain profit below expectations, outlook but composition the same

3/5/2024 08:55, BAACOMB

Komern banka presented the results for 1Q, at 14:00 the conference call with the management ended. The year-on-year decrease in certain profit was caused by a significant year-on-year increase in the cost of risk. Outlook for the year 2024 zstv stejn. We rate the results as slightly negative.

income for certain years meziron slightly decreased by 1% to 6,276 million K, thus being on par with the consensus and slightly above our forecast (6,190 million K).

ist fees and commissions showed year-on-year growth of 5%, which was fueled by income from the sale of mutual funds and life insurance and strong demand from corporate clients for financial services. Other operating income between the years decreased by 12% due to the lower profit of financial operations.

Operating expenses were 1% below the consensus, when they fell in the interim due to less levy to regulatory funds. On the operating level, Komern banka reported a profit of K 4,018 million, an increase of 2% year-on-year.

In 1Q, the bank created correction items at more than K 485 million (22 basis points in relative terms), much more than expected. Growth was primarily driven by the creation of repair items for consumer companies and the small business segment.

On par certain profit so Komern banka reported a profit of K2,804 million, 10% below the consensus and thus significantly below our estimate (K3,289 million).

ist profit of Komern banka for 1Q 2024, source: Komern banka

Volume deposit meziron shrank by 7.2% and volume incl by 4.6%. The bank reported chapter book 18.8% and pointer liquidity cover reached a value of 154%.

The management confirmed this insight into 2024, who presented it with the results for 4Q 2023. Revenues should grow by one and an average single-digit percentage. Operating expenses should grow more slowly, not imports and risk capital should remain below the level of 20-30 basis points.

We rate the results as slightly negative, but do not have a material impact on our target price of 927 K.

On the day of the stock market crash, it is the ex-date, i.e. the first trading day when the shares are traded on a specific market without a claim for a dividend. Ex-date on RM-SYSTM pipad and on May 7. The different share prices of Komern banka on these two markets will therefore require a dividend of K82.66 for the first (non) year.

Komern banka (BAAKOMB) shares closed at 874.50 K on the stock exchange and 874 K on RM-SYSTM.

Development of Komern banka share price

Karel Nedvd, Fio banka, a.s