In H1, the Group observed an increase in net banking income of 4.9% YoY and a decrease in net income of 4.2%.
As Komercijalna Banka published their H1 2019 report, we are bringing you key takes from it. According to the report, the company recorded a slight increase in net interest income of 1.7% YoY, amounting to RSD 6.88bn. Meanwhile, net fee and commission income amounted to RSD 2.78bn, which represents an increase of 2.6%.
It is important to mention that a slight pressure on the net interest margin (NIM) has been observed in the past years, with NIM decreasing gradually since 2015 (NIM of 3.5%) and which currently stands at 3.1%.
Moving further down the P&L, the company recorded a net banking income of RSD 10.22bn, which represents an increase of 4.9% YoY. When observing the Group’s earnings before tax, one can notice a decrease of 4.2% YoY, amounting to RSD 3.63bn. The mentioned decrease could be attributed to an increase in depreciation by RSD 251.1m, which in H1 amounted to RSD 575.8m, and also to the increase in other expenses by 17.8%, which amounted to RSD 3.97bn.
It is worth noting that on the Group level, Komercijalna Banka recorded CIR of 60.5% in H1 (decrease by 1 p.p.).
In H1, the Group recorded a net profit of RSD 3.63bn, representing a decrease of 4.2% YoY.
Komercijalna Banka Performance (H1 2018 vs H1 2019) (RSD bn)
Turning our attention to the balance sheet, Komercijalna Banka recorded total assets of RSD 453.5bn, which represents a 2.7% YoY increase. Of that, the largest item was loans and receivables from customers which amounted to RSD 198.6bn (+3.7% YoY), showing strong loan growth.
On the other hand, total liabilities amounted to RSD 381.2bn, representing an increase of 3% YoY. Of that, deposits and other liabilities to customers account for 78.2% (RSD 354.6bn), which in H1 observed a slight increase of 1.1% Consequently, L/D ratio stands at a relatively low 56%, showing room for further loan growth.
As of 30 June 2019, the company’s capital adequacy ratio consists of only Tier 1 Capital, which amounts to RSD 65.86bn (+9% YoY). Consequently, CAR stands at 26.43%, showing a comfortable excess capital, as the required capital ratio stands at 13.98%.
As a reminder, recently the Government of the Republic of Serbia has announced that the deadline for the submission of non-binding bids for the purchase of the state’s stake in Komercijalna Bank has been extended from 23 August to 6 September 2019. To read more about it, click here.