The Czech Export Bank (CEB) almost doubled its net profit yr/yr to CZK 358m last year and reported a similar development also in terms of new contracts whose volume reached CZK 2.1bn, according to the annual report on the bank’s website.
Like in 2020, its performance was adversely affected by the pandemic. Some export projects were not supported because of increased risk, the bank said.
Reducing the share of risky liabilities is one of the CEB’s long-terms goals. The share decreased to below 5 percent, the lowest level in the past few years, thanks to the sale of a claim on Adularya, the owner of brown-coal-fired power plant Yunus Emre in Turkey, completed early this year, CEB CEO Daniel Krumpolc said in the annual report.
The loan contract for the Adularya project was signed in 2010. The nominal value of the claim was EUR433m (about CZK 10.6bn), according to business daily Ekonomicky denik.
Another Czech daily Hospodarske noviny said in February that proceeds from the sale reached Kc2bn.
The bank supported export projects of 17 Czech businesses, one fewer yr/yr. Such level was achieved in 2014 to 2017.
Last year, the CEB concluded 32 new loan and guarantee contracts to back supplies of small and medium-sized exporters and enterprises worth CZK 315.4m, as against 42 contracts and exports worth CZK 356.4m a year earlier.
Contracts for small and medium-sized enterprises made up around 15 percent, while in 2020 the share was about a fifth higher. The majority, namely 539 new loan and guarantee products for CZK 1.8bn, was used by large companies last year.
Most contracts signed last year were for exports to Morocco, 47 percent, supplies to Germany made up 29 percent and supplies to Ethiopia 7 percent. The number of the CEB-supported export destinations decreased to 19 from 20 in 2020.
Set up in 1995, the CEB is part of the state export policy system.
