Komercni Banka A.S.

Komercni banka is a universal banking group based in the Czech Republic. Co. is engaged in the provision of a range of financial services in retail, corporate and investment banking. Co.'s operating segments include: Retail Banking, the provision of products and services to individuals, such as among others building savings, pension insurance, overdrafts, credit card and personal loans and mortgages; Corporate Banking, the provision of products and services to corporate entities such as foreign currency and derivative products, syndicated and export financing, and guarantee transactions; and Investment Banking, which involves trading in financial instruments.
  • TickerKOMB
  • ISINCZ0008019106
  • ExchangePrague Stock Exchange
  • SectorBanks
  • CountryCzech Republic
Research Team

The Rear-View Mirror – EME markets: Turkish ISE30 still weak, down 9.6% in August

EME Equity Market – August 2020 Market performance – most indices end August in the black, but the ISE30 Index decline continues, down 9.6%. In August, the MSCI EM Europe Index declined by 1.2% in EUR terms, but stayed mostly flat (+0.1%) in local currency terms. Romania’s BET Index performed the best, up 7.2%; followed by the Greek ASE Index (+2.7%); the Czech Republic’s PX Index (+2.4%); Poland’s WIG20 Index (+2.3%); and the MOEX Index (+0.5%). The Hungarian BUX Index declined by 2.6%, followed by the ISE30 Index, the poor performance of which reflects the current weakness of Turki...

Stefan Maxian

Komercni Banka confirmed at BUY, TP CZK 650 - Investment case unchanged post 2Q results

Komercni Banka delivered 2Q earnings below our and consensus estimates on the back of higher risk costs and lower NII. Still, we slightly raise our 2020e estimates based on a less conservative COR scenario, which remains above the management guidance. Our investment case, however, centres around the record capitalisation of KB. At a CET1 ratio of 21.3% the bank ranks on top of our coverage universe. The excess capital on tier 1 level including the upper range of the 50 200 bps management buffer stands at > CZK 140 per share (i.e. >25% of the current share price). This should provide a solid do...

Michał Konarski ...
  • Mikołaj Lemańczyk

Banks – Free To Seize Rebound Opportunities

The Stoxx Europe 600 Banks index has tumbled 37% since the beginning of the year, with the drop from high to low measuring 46%. As the coronavirus pandemic continues to spread, economic forecasts for the euro area are getting increasingly bleak, with the European Commission currently guiding for an 8.8% contraction this year as compared with 8.3% predicted in March. The crisis has not spared the financial sector, with our aggregate net earnings expectations for the European coverage universe ex Poland slashed by 53% to reflect low interest rates and additional crisis provisions. At the revised...

Raiffeisen Centrobank Equity Daily 04.08.2020

 AT: AT&S - 1Q 20/21 sales and EBITDA above expectations due to FX, net below, 2Q outlook: sales flat, EBITDA in 20-25% range (neutral)  CZ: Komercni Banka - Conference call take-aways (neutral)  HU: Gedeon Richter - Richter received marketing authorization for a new product in the UK (neutral)  HU: MOL - July model refining margins turned positive, while petchem margins stayed under pressure (neutral)  HU: Wizz Air - July capacity utilization at 74% and 61% load factor (neutral)  PL: Alior Bank - Changed 1H 20 reporting date (neutral)  PL: LPP - Preliminary 2Q operating l...

Research Team

The Rear-View Mirror – EME markets: Equities back in the red in EUR terms in July

EME Equity Market – July 2020 Market performance – majority of indices in the red, with the ISE30 Index down 12.6%. Following its mediocre decline in June, the MSCI EM Europe Index declined 4.4% in EUR terms, but gained 0.4% in local currency terms in July. Following the rather large decline in the Turkish equities, the MOEX Index was also down, 3.5%, in July; while the Athens’ benchmark declined 3.3% and the Romanian BET Index fell 3.2%. Following its gain last month, the PX Index declined by 2.4%, followed by the Hungarian BUX Index, -0.4%. The only benchmark with a positive return in ...

Research Team

The Rear-View Mirror – EME markets: Turkish ISE30 still weak, down 9.6% in August

EME Equity Market – August 2020 Market performance – most indices end August in the black, but the ISE30 Index decline continues, down 9.6%. In August, the MSCI EM Europe Index declined by 1.2% in EUR terms, but stayed mostly flat (+0.1%) in local currency terms. Romania’s BET Index performed the best, up 7.2%; followed by the Greek ASE Index (+2.7%); the Czech Republic’s PX Index (+2.4%); Poland’s WIG20 Index (+2.3%); and the MOEX Index (+0.5%). The Hungarian BUX Index declined by 2.6%, followed by the ISE30 Index, the poor performance of which reflects the current weakness of Turki...

Stefan Maxian

Komercni Banka confirmed at BUY, TP CZK 650 - Investment case unchanged post 2Q results

Komercni Banka delivered 2Q earnings below our and consensus estimates on the back of higher risk costs and lower NII. Still, we slightly raise our 2020e estimates based on a less conservative COR scenario, which remains above the management guidance. Our investment case, however, centres around the record capitalisation of KB. At a CET1 ratio of 21.3% the bank ranks on top of our coverage universe. The excess capital on tier 1 level including the upper range of the 50 200 bps management buffer stands at > CZK 140 per share (i.e. >25% of the current share price). This should provide a solid do...

Michał Konarski ...
  • Mikołaj Lemańczyk

Banks – Free To Seize Rebound Opportunities

The Stoxx Europe 600 Banks index has tumbled 37% since the beginning of the year, with the drop from high to low measuring 46%. As the coronavirus pandemic continues to spread, economic forecasts for the euro area are getting increasingly bleak, with the European Commission currently guiding for an 8.8% contraction this year as compared with 8.3% predicted in March. The crisis has not spared the financial sector, with our aggregate net earnings expectations for the European coverage universe ex Poland slashed by 53% to reflect low interest rates and additional crisis provisions. At the revised...

Raiffeisen Centrobank Equity Daily 04.08.2020

 AT: AT&S - 1Q 20/21 sales and EBITDA above expectations due to FX, net below, 2Q outlook: sales flat, EBITDA in 20-25% range (neutral)  CZ: Komercni Banka - Conference call take-aways (neutral)  HU: Gedeon Richter - Richter received marketing authorization for a new product in the UK (neutral)  HU: MOL - July model refining margins turned positive, while petchem margins stayed under pressure (neutral)  HU: Wizz Air - July capacity utilization at 74% and 61% load factor (neutral)  PL: Alior Bank - Changed 1H 20 reporting date (neutral)  PL: LPP - Preliminary 2Q operating l...

Research Team

The Rear-View Mirror – EME markets: Equities back in the red in EUR terms in July

EME Equity Market – July 2020 Market performance – majority of indices in the red, with the ISE30 Index down 12.6%. Following its mediocre decline in June, the MSCI EM Europe Index declined 4.4% in EUR terms, but gained 0.4% in local currency terms in July. Following the rather large decline in the Turkish equities, the MOEX Index was also down, 3.5%, in July; while the Athens’ benchmark declined 3.3% and the Romanian BET Index fell 3.2%. Following its gain last month, the PX Index declined by 2.4%, followed by the Hungarian BUX Index, -0.4%. The only benchmark with a positive return in ...

Komercni Banka, a.s.: Semiannual update

FINANCIAL INSTITUTIONS CREDIT OPINION 11 December 2017 Update RATINGS Komercni Banka, a.s. Domicile Czech Republic Long Term Deposit A2 Type LT Bank Deposits - Fgn Curr Outlook Stable Please see the  ratings section  at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Arif Bekiroglu 44-20-7772-1713

Research Team

WOOD Daily: CEZ CP; RICHT HB; KOMB CP; SAB1L LH; BRD RO; MTSS RX; PL Utilities; EME Macro/Strategy – ESI; EME Strategy – RO; TEN PW; CIE PW

HEADLINES: • CEZ: How I Learned to Stop Worrying and Love the Bomb (upgraded to BUY) • Richter: 2Q20 beat on Vraylar milestone POSITIVE • Komercni Banka: weak 2Q20 delivery, but 2020E outlook reiterated and capital ratios show strength • Siauliu Bankas: solid beat in 2Q20, driven by lower COR POSITIVE • BRD-GSG: 2Q20 net profit softer on higher COR • Mobile Telesystems: management recommends RUB 8.93 DPS (RUB 17.86/ADR), based on 1H20 results POSITIVE • Polish utilities: Minister Sasin comments on Poland's coal phase out and sector overhaul POSITIVE • EME Macro/Strategy: CE...

Research Team

WOOD Daily: KER PW; LPP PW; PLY PW; CEE Banks

HEADLINES: • Kernel: 4Q20 trading update - broadly in line with company's targets NEUTRAL • LPP: completes negotiations with 98% of shopping malls POSITIVE • Play Communications: increases prices in mobile pre-paid segment POSITIVE • CEE banks: 2Q20E - in the eye of the cyclone (Komercni Banka, MONETA Money Bank, Erste Bank, PKO BP, Bank Pekao, Santander BP, mBank, ING BSK, Bank Handlowy, Bank Millennium, Alior Bank) • Play Communications: 2Q20E preview - 1% yoy adjusted EBITDA drop expected (due on 10 August) • Short News (KGH)

Research Team

WOOD Daily: FINT SG; CCC PW; KOMB CP; EU Natural Gas; RO Politics; UKR Macro; RU Macro; EME Strategy – PL OFEs; LVC PW; TEN PW; BFT PW; CPS PW; WPL PW; DNP PW; GPW PW; Rear-View Mirror

HEADLINES: • Fintel Energija: small, but powerful (BUY - initiation of coverage) • CCC: mixed bag in 2Q20, potential capital increase at eobuwie NEUTRAL • Komercni Banka: Czech local press speculates that SocGen may sell Komercni NEUTRAL • European natural gas monthly: June 2020 NEUTRAL • Romanian politics: economic stimulus plan of EUR 100bn over 10 years POSITIVE • Ukraine macro: NBU governor resigns NEGATIVE • Russia macro: referendum results do not compromise further fiscal stimulus • EME Strategy: OFE reform likely postponed until 2021E NEGATIVE • LiveChat Software: ke...

Research Team

The Rear-View Mirror – EME markets: Equity returns mixed as rebound forces weaken

EME Equity Market – June 2020 Market performance – in June, Turkish equities performed the best (+7.7%), while Hungary was the weakest (-2.2%). Following its rebound in the past couple of months, the MSCI EM Europe Index declined in June, losing 1.8% in EUR terms and 0.6% in local currency terms. Turkish equities were the best performers, with the ISE30 Index +7.7%, followed by Prague’s PX Index (+3.5%), and the WIG20 (+2.3%). After its good run in May, the Romanian BET lost 0.3% in June, while the Russian MOEX was down 2%. Greek equities declined 2.1%, while the worst-performing index w...

Research Team

WOOD Daily: KOMB CP; ALR PW; TKFEN TI; ENJSA TI; BRD RO; CCOLA TI; ATRS AV; PL Banks; EAT PW; MONET CP; BELA GA; European Refining and Petrochemicals; AFLT RX; MOEX RX; CDR PW; VESBE TI; MOL HB; RIGHT HB

HEADLINES: • Komercni Banka: 1Q20 results - irrelevant beat on the bottom line, but quite reassuring guidance POSITIVE • Alior Bank: 1Q20 results look solid on bottom line, but this may change quickly in coming quarters NEUTRAL • Tekfen Holding: 1Q20 miss triggers guidance cut NEGATIVE • Enerjisa Enerji: posts solid growth for 1Q20 and updates 2020E guidance • BRD-GSG: strong 1Q20, but not indicative of full-year performance • Coca-Cola Icecek: 1Q20 results - in line, with beat on net profit; FY20E guidance withdrawn NEUTRAL • Atrium: 1Q20 results - hit from COVID-19 a touch le...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch