Komercní banka (KOMB) Q1 2025 earnings summary

Executive summary

• Net income reached CZK 4.2 billion in Q1 2025, up 49.3% year-over-year, marking the best Q1 in the group's history, with EPS at CZK 22.17.

• Client base grew by 60,000 to 1.7 million, with significant migration to a new technology stack and 1,136,000 users on the new KB+ app.

• Dividend payout policy maintained at 100%, with CZK 91.30–93.10 per share declared for 2024 profits, payable from 26 May 2025.

• Board and Supervisory Board changes include new and re-elected members, with appointments effective in 2025.

• Achieved full ownership of SG Equipment Finance Czech Republic and completed insured deposit payouts for Sberbank CZ clients.

Financial highlights

• Net banking income rose 3.5% year-over-year to CZK 9.1 billion; net interest income up 2.0%; net profit up 49.3% to CZK 4.2 billion.

• Cost of risk was a net release of CZK 496 million, mainly from non-retail exposures and a large corporate resolution.

• Operating expenses fell 4.4% year-over-year, with personnel costs down and administrative savings offset by higher IT costs.

• ROE at 13.0% (13.7% IFRIC 21 linearised); cost/income ratio at 50.3% (47.2% linearised).

• Balance sheet contracted 1.8% year-over-year to CZK 1,585.7 billion; loans to customers up 2.9% year-over-year.

Outlook and guidance

• Lending and deposit growth for 2025 downgraded to mid-single digit, at the lower end for loans; revenue outlook revised to mid-single digit growth.

• OPEX expected to decline low to mid-single digit in 2025, with staff reduction of ~500 FTE planned.

• Cost of risk guided at 0–10 bps for 2025, closer to zero, reflecting planned reserve reversals and stable default rates.

• Fee income guidance revised to stable due to slower mutual fund sales.

• Management aims to further grow customer base, accelerate digital migration, and maintain 100% dividend payout policy.