Komercní banka (KOMB) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 reached CZK 8.8 billion, up 38.9% year-over-year, with Q2 net income at CZK 4.6 billion, up 30.6%, driven by provision releases, strong asset quality, and higher revenues.

• Client base expanded by 47,000, nearing 1.8 million, with 1,269,000 to 1.3 million users migrated to the new digital bank platform.

• Loans grew 4.3% year-over-year, led by mortgages and housing loans; deposits declined 2.6%, but current accounts increased.

• Assets under management outside the bank rose 8% year-over-year, with mutual funds up 14.2%.

• Recognized for sustainability and digital transformation leadership.

Financial highlights

• Total revenues for H1 2025 were CZK 18.2 billion, up 3.6% year-over-year; net interest income rose 3.0% to CZK 12.8 billion; net fee and commission income up 4.9%.

• Operating profit up 11.6% year-over-year; operating expenditures fell 3.9% to CZK 8.7 billion.

• Net profit per share for H1: CZK 46.64; annualized EPS at CZK 93.3, up 38.9%.

• Cost-to-income ratio improved to 48.0% for H1 and 45.7% in Q2.

• Total assets grew 4.6% year-over-year to CZK 1.60 trillion.

Outlook and guidance

• Loan and deposit markets expected to grow at mid-single-digit rates in 2025; loan portfolio growth led by housing loans.

• Revenue growth guidance revised to low to mid-single digit; operating expenses to decline mid-single digit.

• Cost-to-income ratio targeted at 44% for 2025; ROE targeted around 14%.

• Full-year cost of risk expected around or below 0 bps, mainly due to provision releases.

• Management intends to propose distributing 100% of attributable consolidated net profit as dividends for 2025.