Net profit of Czechia’s bank Ceska sporitelna went up by 36.3 percent yr/yr to Kc10.8bn in Q1-Q3, and its operating profit rose by 3.8 percent to CZK 16.2bn, according to consolidated business results the bank released on its website.
The bank attributed the net profit growth to this year’s lower provisioning.
Ceska sporitelna was helped by the economic recovery of the last few months and low unemployment that led to growing demand of households.
These trends are evident in data on loans and deposits as of September 30, Ceska sporitelna board member Ivan Vondra said.
The loan volume was driven by retail mortgages that increased by 14.3 percent yr/yr. Corporate loans stagnated at CZK 270.4bn. Client deposits went up by 9.3 percent yr/yr to almost CZK 1,260bn.
Net interest income, the most important component of operating income, went up by over 2 percent to CZK 22.3bn, which was thanks to growth in loans and interest rates of the Czech National Bank (CNB).
Net fee and commission income grew by 13.7 percent to CZK 6.9bn.
Ceska sporitelna is the largest bank in Czechia by client numbers, having about 4.5 million of them.
Austria’s Erste Group Bank, Ceska sporitelna’s owner, is a key player on the banking market in Central and Eastern Europe. The group more than doubled its net profit to EUR 1.45bn (roughly CZK 37bn) in Q1-Q3.
Source: Ceska sporitelna and CTK
