Komercni banka has started to sell Allianz non-life insurance products (e.g. household and car insurance) in order to broaden its product range and boost revenues.
Source: Bloomberg.
After the sale of KB's subsidiary, CAC Leasing (in July 2003), it lacked any non-life insurance services. We view the move as positive as it should improve KB's portfolio of services (offsetting the possible competitive disadvantage of an incomplete product portfolio), helping KB's top line. It may also help KB to attract new clients and increase the loyalty of the current ones .
Separately, KB´s CEO, Alexis Juan, yesterday said that the contribution of fees and commissions to KB's profit would decline in the future due to the increased interest margin contribution reflecting the growth of the loan portfolio.
Tomáš Gatěk, Patria Finance