(Repoeats story published on May 5)
* Komercni Banka <> Q1 earnings
* Due Thursday, May 7 at 0730 GMT
* Average net profit estimate 2.23 bln crowns, down 27 pct
PRAGUE (Reuters) - Czech Komercni Banka is expected to show
a 27 percent drop in first-quarter net profit due to a jump in
provisions, as more clients start to feel pain from the economic
crisis, a Reuters poll showed on Tuesday.
But operating results at the only listed Czech bank, 60
percent owned by France's Societe Generale <SOGN.PA>, were
expected to stay strong on the back of growing net interest
income -- albeit at a slower pace than previous quarters.
Eight analysts gave an average estimate for quarterly net
profit at 2.23 billion crowns ($112.6 million), down from 3.05
million crowns a year ago.
As the economic crisis bites, the bank's provisioning was
seen sharply higher due to rising ratio of non-performing loans.
In the first quarter, Komercni booked an around 800 million
crown loss for a 1.25 billion crown claim after energy trader
Moravia Energo went bankrupt, analysts said.
"The focus has been clearly moving to the asset quality side
- and an 800 million crown hit of provisions against Moravia
Energo might be only the first swallow," brokerage Wood &
Company said in a report.
The broker added though that Komercni's low risk profile
would buoy its results versus central European peers, and rated
it as one of Wood's top plays among banks.
Komercni shares fell by 29 percent over the past 12 months,
outperforming a 43 percent drop Prague's PX index <>, but are
up 69 percent from a February low as investors return to beaten
down stocks.
Komercni traded at 11.8 times expected 2009 earnings on
Tuesday, according to Reuters data, while the average for main
European banking stocks <.FTE3X8350ECR> was at 11.6.
Following is a summary of analysts' estimates for the first
quarter of 2008 (figures in billions of crowns):
Q1/09 Average Median Q1/08 Range
Net interest income 5.51 5.53 5.07 5.22- 5.67
Net fees 2.01 1.98 1.95 1.93- 2.22
Total banking revenue 8.50 8.50 7.85 8.33- 8.72
Operating profit 4.50 4.78 4.28 2.88- 5.04
Net profit 2.23 2.25 3.05 2.11- 2.38
The following banks and brokerages took part in the poll:
Atlantik FT, BH-Securities, Citigroup, Cyrrus, Erste Bank/Ceska
Sporitelna, KBC Securities/Patria Finance, Raiffeisenbank, Wood
& Company.
Net interest income and fees estimates were provided by
seven analysts, operating profit by six analysts.
(Reporting by Jan Korselt; Editing by Sharon Lindores)
($1=19.81 Czech Crown)
