Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2013-02-13/komercni-2012-profit-rises-to-record-as-writedowns-not-repeated

Bloomberg News

Komercni 2012 Profit Rises to Record as Writedowns Not Repeated

February 13, 2013

Komercni Banka AS’s profit rose more than expected to a record last year as the Czech unit of Societe Generale SA cut its total write-offs.

Net income attributable to shareholders jumped 47 percent from 2011 to 13.95 billion koruna ($740 million), the Prague- based bank said in a statement today, beating the 13.75 billion- koruna median estimate of 15 analysts in a Bloomberg survey. It proposed a dividend payout of 230 koruna per share.

While the Czech economy contracted in 2012, Komercni increased lending by 4.1 percent to 469.1 billion koruna and slashed the amount of reserves and provisioning by 75 percent to 1.9 billion koruna. In 2011, profit shrank 29 percent to a five- year low as the bank wrote off 5.36 billion koruna from a 7 billion-koruna portfolio of Greek government bonds.

“The lower risk costs were therefore the main driver for the 47 percent gain in the group’s net profit,” Komercni Banka said in the statement.

Fourth-quarter net attributable profit increased 25 percent from a year earlier to 3 billion koruna, the company said.

While economic conditions “will probably remain difficult this year and market interest rates will stay very low, we must focus on disciplined cost management,” Chief Executive Officer Henri Bonnet said in the statement.

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus