William Malcolm

Czech Banks See Profits Surge

In the first half of this year, banks and savings banks in the Czech Republic increased their total net profit by CZK 4.5 billion year-on-year to CZK 31.1 billion. This follows from data published today by the Czech National Bank. The balance sheet total of banks at the end of June was 8.8 trillion crowns, which is an increase of 791 billion crowns compared to the end of 2020. According to experts, lower risk costs mainly helped banks to perform better.

Profit from financial and operating activities of banks fell by CZK 7.6 billion year-on-year to CZK 87.5 billion. Interest income decreased by 25.6 billion to 81.5 billion crowns. Revenues from fees and commissions increased by two billion to 22.9 billion crowns.

“Last year, in connection with the brutal economic downturn, financial houses started to create massive reserves, which transcended into weaker profits. Cyrrus Tomas Pfeiler. At the same time, however, the demand for new loans, especially mortgages, grew at a relatively fast pace. Financial institutions have also shown good cost discipline, he added.

Komerční banka’s net profit increased by 17.4 percent year-on-year to CZK 5.258 billion in the first half of the year, by the ČSOB Group by 91 percent to CZK 6.6 billion, Česká spořitelna’s net profit rose by 43.4 percent to CZK 6.6 billion and UniCredit Bank in the Czech Republic and Slovakia by 33 percent to 3.2 billion crowns.