The net profit of the ČSOB Group in 2020 fell by 57 percent to CZK 8.5 billion (approx. EUR 329 mln). The volume of loans, deposits and assets managed by the bank increased year-on-year. ČSOB, which is one of the largest domestic banks. Other large banks also saw a drop in profits due to the coronavirus pandemic.
“Last year, the covid-19 pandemic literally turned people’s lives upside down. We remained available at branches and online, where we saw a remarkable increase in service usage and transactions. We approved 65,000 deferrals. Even after the end of the blanket moratorium on clients in We help problems individually, “commented the results of ČSOB CEO John Hollows.
The lower net profit of the ČSOB Group caused an increase in the volume of loan loss provisions and a decrease in operating income. The year-on-year comparison was also negatively affected by the higher base in 2019, which was reflected in one-off revenues from the revaluation of the stake in ČMSS and the sale of ČSOB Asset Management. Without the mentioned extraordinary factors and the effects of ČMSS consolidation, ČSOB’s net profit would have been 51 percent lower year-on-year.
The volume of ČSOB loans increased by two percent to CZK 792 billion, the volume of housing loans increased by five percent to CZK 458.2 billion. The volume of deposits increased by 12 percent to CZK 1.073 trillion. The volume of assets under management amounted to CZK 253 billion, up five percent year-on-year.
The bank’s operating revenues reached CZK 35.3 billion, which was a year-on-year decrease of 17 percent and 14 percent, respectively, on a comparable basis. Operating expenses were 19.3 billion, up one percent year-on-year, and three percent lower on a comparable basis.
According to the bank, the quality of the loan portfolio remained high, with higher credit risk costs reflecting the expected effects of deteriorating economic developments due to covid-19. The creation of loan loss provisions increased to CZK 5.6 billion. The share of non-performing loans in the entire loan portfolio was 2.26 percent at the end of last year.
The ČSOB Group includes ČSOB, Hypoteční banka, Českomoravská stavební spořitelna, ČSOB Penzijní společnost, ČSOB Leasing and ČSOB Factoring. ČSOB belongs to the international banking and insurance group KBC, which is active in Belgium and the countries of Central and Eastern Europe.
Source: CTK and ČSOB
