Komercni Banka "Focus on cost delivery" (Buy) Nemes

研报英文原文证据摘录

Komercni Banka "Focus on cost delivery" (Buy) Nemes

ve to us. We saw good cost control in Q1'26 down -4.3% y/y driven by 11% 12/26E 91.05 91.02 -0 89.55

y/y lower personnel costs - a reflection of efficiency measures at the bank following the 12/27E 100.40 99.87 -1 94.97

roll-out of the digital platform. In this context, we expect Komercni to deliver positive 12/28E 104.45 104.45 0 100.72

jaws every year within our forecast horizon, reaching 39.5% cost/income ratio by FY28E

(VA cons. 41.0%), which should help Komercni deliver higher returns going forward. Mate Nemes, CFA

We expect an update to medium-term targets later this year, around SocGen's CMD Analyst

mate.nemes@ubs.com

event in September.

+41-44-234 23 18

Attractive, stable dividend yield, resilient P&L with upside potential on costs. Nicolas O'Sullivan

Analyst

We consider Komercni deserves a premium valuation to European banks, driven by long- nicolas.o-sullivan@ubs.com

standing management with a good track record, predictable stable dividend, exposure +44-20-7568 5364

to secular growth in Czechia driving revenues higher and very robust asset quality over

the long-run, with one of the lowest cost of risk in the region. We expect cost of risk at

10bps in FY26E, driven by a substantial buffer of performing provisions (CZK 4.0bn)

worth 6 years of L10Y average loan losses, or equivalent to FY20 cost of risk.

Valuation: 9.8x EPS 27E, 1.5x P/TNAV 26E for a 16.8% ROTE in 27E.

Komercni shares haven't recovered since the April sell-off on the guidance downgrade,

which we think is a touch too conservative and fails to reflect longer-term operational

leverage. We reiterate our Buy rating.

Highlights (Kcm) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 36,199 36,616 36,858 38,173 40,767 43,368 45,600 47,892