* Hikes dividend to 270 crowns a share, up from 2009 level
* Shares drop as co says cannot commit to future high div
* Dividend proposed at CZK 270 per share vs CZK 170 year ago
* Costs seen rising above revenue, operating income seen up
(Adds details, quotes, analyst, share price)
By Jan Korselt
PRAGUE, Feb 16 (Reuters) - Komercni Banka <> will
pay a much larger dividend this year after fourth-quarter net
profit beat expectations, although the Czech lender cannot fully
commit to such a high payout in future, its finance chief said.
The bank, 61 percent owned by France's Societe Generale
<SOGN.PA>, proposed to pay a dividend of 270 crowns per share on
2010 profit, much higher than the 170 crowns paid in 2009, but
some investors were expecting even a much higher dividend.
The high expectations, along with the bank's reluctance to
commit to the higher payout, was part of the reason why shares
in the third largest Czech lender by assets fell 3 percent,
overshadowing forecast-beating results. By 1146 GMT they were
down 1.8 percent.
"We are not in a position to commit to a payout ratio, but I
say it (2010) is not a super dividend. I do not see it as a
one-off dividend," Chief Financial Officer Pavel Cejka told
analysts.
"A comfortable capital level could allow us to continue
around this level, but once again, we cannot really commit at
the moment."
Marek Hatlapatka, an analyst at brokerage Cyrrus, said
reports about an initial public offering (IPO) of the second
largest Czech bank CSOB, owned by Belgium's KBC <KBC.BR>, was
another factor behind the share drop as investors make room in
their portfolios.
A Czech news website reported on Tuesday the IPO may start
in mid-March. []
COSTS, OPERATING INCOME TO RISE
Komercni posted forecast-beating fourth-quarter net profit
chiefly due to lower operating costs and provisions for bad
loans.
But Cejka said he expected costs to rise this year, although
gross operating income should also show a single digit
percentage rise, he said.
"We do expect increase in costs in 2011 after two years of
strong cost decline. We do expect increase in costs, which will
be above the revenue growth," Cejka said.
He added revenue should increase by "mid single digits" this
year.
Currus' Hatlapatka said some investors could be disappointed
by the 2011 outlook, namely the costs exceeding revenues, and
sold the shares.
Komercni said earlier on Wednesday that net profit rose 31
percent to 3.37 billion crowns ($187 million), above the average
estimate of 3.15 billion in a Reuters poll of analysts.
Income from financial operations rose by 180 percent
year-on-year to 797 million crowns.
The cost of risk fell to 698 million crowns from 1.19
billion in the same period last year, but a touch higher than
636 million in the third quarter.
Net interest income was 5.45 billion crowns, just above
expectations for 5.42 billion in the poll.
(Reporting by Jana Mlcochova and Jason Hovet; Editing by Will
Waterman and Louise Heavens)
($1=18.04 Czech Crown)
