International Property News

CZ - KB's net profit up at Kc 10.8bn in 2007

19th February 2008

Komercni banka raised net earnings by around 18 percent to Kc10.8bn last year, analysts told CTK Tuesday.

Komercni banka, one of the main banks in the Czech Republic majority controlled by France's Societe Generale, netted Kc9.12bn in 2006.

Last year's results will be published by Komercni banka on Friday.

Analysts at Cyrrus, Atlantik FT and Ceska sporitelna expect the Kc10.8bn consolidated net profit, while Patria Finance analysts put the bank's profit for last year at Kc10.98bn.

"On Friday, Komercni banka will most probably present another proof of 2007 being a very successful year for banks active on the Czech market," said Cyrrus analyst Marek Hatlapatka.

A growth in the number of loans provided and consolidation of the building society Modra pyramida at the end of 2006 are behind the profit growth, according to estimates.

Consumer loans seem to have grown the fastest, also in the last three months of 2007. Komercni banka focused on consumer loans last year and apparently managed to raise their share to more than 40 percent of the volume of loans provided, said Hatlapatka.

Net interest income is estimated to have risen by 14 to 16 percent to Kc18.5-Kc18.8bn. Income from fees and commissions was about five percent higher at Kc9.2bn. Modra pyramida's consolidation has contributed to the growth, said Hatlapatka.

CSOB, the largest Czech bank, raised consolidated net profit for last year by 13.6 percent to Kc10.84bn.

Ceska sporitelna will publish business results for 2007 on Feb 29.