Prague, 3 November 2023

Komerční banka Group

Consolidated unaudited results as of 30 September 2023

and status of implementation of KB 2025 strategy

Disclaimer

This document contains a number of forward-looking statements relating to the targets and strategies of the Komerční banka Group. These statements are based on a series of assumptions, both general and specific. As a result, there is a risk that these projections will not be met. Readers are therefore advised not to rely on these figures more than is justified as the Group's future results are liable to be affected by a number of factors and may therefore differ from current estimates.

Readers are advised to take into account factors of uncertainty and risk when basing their investment decisions on information provided in this document.

Results and ratios in this presentation are as of 30 September 2023, unless stated otherwise.

Komerční banka, a.s., public limited company with registered office: Prague 1, Na

Příkopě 33/ 969; identification number: 45 31 70 54; registered in the Commercial

Register maintained by the Municipal Court in Prague, Section B, file 1360

KB Group results as of 30 September 2023

2

Agenda

Highlights as of 30 September 2023

Macroeconomic environment

Business performance

Financial performance

Asset quality and cost of risk

Outlook for the rest of 2023

KB 2025 Year 3 delivery

Appendix

KB Group results as of 30 September 2023

3

Highlights of 9M&Q3 2023

First nine months of 2023: Solid delivery amidst stagflationary economy

Nine months 2023

Third quarter 2023

Group net income

Group net income

CZK 12.4billion

CZK 4.3billion

-4.9% year on year

-5.7% quarter over quarter

CZK 65.40 per share

CZK 22.59 per share

ROE

ROE

13.5%

14.2%

13.8% IFRIC linearised

Cost/Income ratio

Cost/Income ratio

48.2%

44.0%

47.0% IFRIC linearised

Solid business performance

Client loans

+2.7% YoY

+1.7% QoQ

Faster consumer lending

Deposits

+1.2% YoY

+2.8% QoQ

Solid growth year-to-date

Other AUM

+2.2% QoQ

+14.7%YoY

Loan to deposit ratio

79.3% (excluding repo operations)

Strong balance sheet

Liquidity coverage ratio

157%

Total capital ratio

20.2%

Core Tier I ratio

19.6%

Cost of risk

-16bps YoyNet release

  • Following introduction of the 'New Era of Banking Written by KB' in April, more than 50,000 clients had enrolled in the new digital bank by September 2023

KB Group results as of 30 September 2023

4

Agenda

Highlights as of 30 September 2023

Macroeconomic environment

Business performance

Financial performance

Asset quality and cost of risk

Outlook for the rest of 2023

KB 2025 Year 3 delivery

Appendix

KB Group results as of 30 September 2023

5

Czech economy looking for growth impetus

GDP in 3Q 20231 down -0.3% QoQ and down -0.6% YoY. Economic activity hindered mainly by weak household consumption and investments, while net exports contribute positively YoY, but negatively QoQ

Industrial production supported by car production. Czech car production in 9M 2023 up by 11.7% YoY. Construction still sluggish due to higher cost of financing and overall economic uncertainty

Tight labour market. Unemployment rate at 2.5% in August 2023.2 Wages in 2Q 2023 up +7.7% YoY nominal but down -3.1% YoY in real terms

Consumer price inflation at 6.9% YoY in September (-0.7 % MoM), retreating steadily. HICP (Eurostat) at 10.1% YoY in August

As of 29 September 2023, at 24.3 CZK per EUR, CZK v. EUR weaker by 2.6% QoQ but stronger by 0.9% YoY

CNB's main policy rate (2W repo rate) at 7% since June 2022. As of 29 September 2023, 3M PRIBOR at 7.1% (-16 bps YoY). IRS curve stays inverted albeit 5y-10y spread has narrowed: 5Y at 4.6% (-91 bps YoY) and 10Y IRS at 4.5% (-56 bps YoY). 10Y CZGB at 4.9% (-39 bps YoY)

Notes: Source of indicators Czech Statistical Office, CNB, unless stated otherwise.

  1. According to flash estimate of the Czech Statistical Office, published on 31 October 2023;
  2. According to Eurostat, seasonally adjusted

Macro

Czech GDP development (% year-on-year)

10

3.6

KB Economic Research Forecast

5

2.4

1.6

2.5

0

-5

-0.3

-5.5

-10

2020

2021

2022

2023F

2024F

2025F

GDP

Government

Inventories

Others

Households

Fixed investment

Net export

Inflation and 2W repo rate development (% year-on-year)

20

KB Economic Research

15

Forecast

10

5

0

Jan-19

Jan-20

Jan-21

Jan-22

Jan-23

Jan-24

Jan-25

2W repo rate

Core Inflation

Inflation

KB Group results as of 30 September 2023

6

Agenda

Highlights as of 30 September 2023

Macroeconomic environment

Business performance

Financial performance

Asset quality and cost of risk

Outlook for the rest of 2023

KB 2025 Year 3 delivery

Appendix

KB Group results as of 30 September 2023

7

Total loans to clients up 2.7%

Net loans to deposits ratio at 79.3%. Liquidity coverage ratio 157%

Consumer lending driven by successful offer of flexible loans granted online and at branches, seasonal slowdown in summer

Housing loans (mortgages + building society loans) up 3.8%. New sales of housing loans stabilising before potential upcoming catalysts

Sales volume of housing loans (KB mortgages + MPSS loans)

(CZK million)

+27.2%

-3.8%

10,134

7,266

6,360

9,609

9,245

5,021

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

3Q 2023

Business lending growth influenced by subdued investment activity of corporations, lower need for working capital financing, effects of FX rate fluctuations* on CZK value of EUR denominated business loans, and selective approach of the bank

  • Negative contribution from 0.9% YoY appreciation of CZK v. EUR represents 0.2% of total lending. Positive contribution from 2.6% QoQ depreciation of CZK in 3Q 2023 represents 0.7% of total loans

Loans to clients

Group lending (w/o repo, but incl. client bonds)

(CZK billion)

+2.7%

+1.7%

808.3

769.4

787.2

784.9

789.1

794.6

83.8

85.3

86.5

88.5

90.6

8.2%

81.5

266.2

267.1

268.7

269.6

271.3

273.5

2.4%

37.0

6.9%

34.7

34.8

35.9

36.8

34.5

387.2

401.6

396.1

397.0

398.1

407.1

1.4%

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

3Q 2023

Building saving loans

Consumer loans

Mortgages to individuals

Business and other loans

Group business and other loans (w/o repo, but incl. client bonds)

(CZK billion)

+1.4%

+2.3%

401.6

407.1

387.2

396.1

397.0

398.1

47.4

47.4

47.7

46.8

46.8

47.4

0.0%

307.8

322.8

317.9

318.7

318.3

326.5

1.1%

5.9%

32.5

33.2

31.7

31.4

31.5

31.5

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

3Q 2023

Small businesses (KB, ESSOX)

SGEF leasing

KB corporates, ESSOX Wholesale, Factoring and other

KB Group results as of 30 September 2023

8

Deposits +1.2%, other AUM up 14.7% YoY

Non-deposit assets under management

(CZK million)

+14.7%

+2.2%

240.7

205.6

210.0

216.6

227.0

235.6

32.5%

88.5

92.4

98.3

108.3

116.4

122.4

-1.2%

45.6

45.6

45.3

45.4

45.3

45.0

71.5

72.0

73.0

73.3

74.0

73.4

1.8%

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

3Q 2023

AUM in mutual funds

KP Life insurance reserves (total savings)

Client assets managed by KB Pension company

Sales of mutual funds

(CZK billion)

12.3

10.6

9.3

8.9

7.2

7.4

Gross

1.910.4

2.46.5

1.45.8

1.36.0

1.98.7

1.57.8

Net

4.8

4.3

4.3

8.8

5.9

5.3

0.0

8.3

0.2

4.6

0.1

4.2

4.3

0.5

0.0

5.9

0.1

5.2

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

3Q 2023

Fixed income funds

Equity & other funds

Deposits and other AUM

Group deposits (excluding repo operations)

(CZK billion)

+1.2%

+2.8%

1,024.3

1,010.1

916.8

979.5

994.7

1,022.4

58.0

56.6

54.2

53.9

52.8

-6.8%

56.0

347.0

336.7

327.8

320.3

323.7

329.0

-2.3%

612.1

610.1

526.3

597.8

610.9

634.0

3.9%

7.2

6.8

6.7

7.3

6.2

6.7

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

3Q 2023

Building savings

Business deposits

KB Individual deposits Other deposits

+1.2%

+2.8%

1,024.3

1,010.1

916.8

979.5

994.7

1,022.4

676.9

648.1

653.5

576.3

568.4

572.3

-11.7%

338.9

354.2

255.8

395.7

419.9

443.3

25.2%

-13.9%

8.4

7.9

7.5

7.6

6.4

6.8

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

3Q 2023

Current accounts

Other payables to customers

Term and savings accounts

KB Group results as of 30 September 2023

9

Agenda

Highlights as of 30 September 2023

Macroeconomic environment

Business performance

Financial performance

Asset quality and cost of risk

Outlook for the rest of 2023

KB 2025 Year 3 delivery

Appendix

KB Group results as of 30 September 2023

10

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Disclaimer

Komercní banka a.s. published this content on 03 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2023 06:04:06 UTC.