May 4, 2018 / 5:28 AM / in a year

Komercni Banka Q1 profit falls less than expected, plans strategy shift

PRAGUE, May 4 (Reuters) - Komercni Banka posted a 26.5 percent drop in first-quarter attributable net profit on Friday, less than expected but sharply down after the Czech lender booked gains from a real estate sale in the same period a year ago.

Profit at the bank, majority owned by Societe Generale of France, dropped to 2.999 billion crowns ($140.96 million), versus the average estimate of 2.87 billion crowns in a Reuters poll.

Net interest income rose in the quarter. But overall banking revenue fell by a more-than-expected 3.6 percent to 7.57 billion crowns, dragged lower by weaker financial operations income.

The bank also said it planned to update its strategy in the coming years to counter pressure on profit margins and growing competition. It will simplify, digitalise and accelerate customer processes in its retail and corporate segments, it said, adding implementation of its KB Change 2020 plan would bring a net positive financial contribution starting from 2019. ($1 = 21.2750 Czech crowns) (Reporting by Jason Hovet)

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