Czech lender KB cuts 2014 loan growth outlook, cost of risk also lower

PRAGUE Wed May 7, 2014 4:33am EDT

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PRAGUE May 7 (Reuters) - Czech lender Komercni Banka cuts its outlook for 2014 loan growth to 3-5 percent from 6-7 percent, Chief Operations Officer Pavel Cejka said on Wednesday.

"The loan demand is coming later, which means the loan volume growth will come later. It will come in the second half of the year but will continue into 2015," Cejka told reporters.

"It is more like 3 to 5 percent volume growth (for this year)," he said.

Cejka also said the bank saw cost of risk at 40 to 45 basic points in 2014, a more optimistic level that previous forecasts.

Komercni reported earlier on Wednesday its net profit dipped by 2.1 percent in the first quarter to 3.08 billion crowns ($157.46 million), in line with expectations after lending growth slowed and risk costs rose. (Reporting by Jason Hovet, writing by Robert Muller)

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