CMSS’s Net Profit Up 5% Year To Date

Prague, Aug 13 (CTK) – Ceskomoravska stavebni sporitelna (CMSS), the largest building society on the Czech market, saw its H1 net profit rise by 5 percent annually to Kc535m thanks to lower provisions, cost discipline, and trade deals, CMSS board chairman Tomas Korinek told journalists today.


Building societies’ lending totalled Kc36.6bn at the end of June, according to CTK’s information. Building societies signed 234,000 new contracts, which was about 23 percent more in annual terms.


In terms of contract numbers and loans provision, CMSS was very successful in the first half-yearly period. An outlook for the rest of the year is positive, too, Korinek said. In the former case, he envisages about a 20 percent growth, predicting a double-digit rise in the latter case.


Demand for loans was 12 percent higher in the Jan-June period, and CMSS granted 14,209 loans worth Kc13.8bn. It signed 96,266 home-building savings contracts, 43 percent more yr/yr.


Fee income grew by an annual rate of 5 percent to Kc315m. Low interest rates are still a negative factor, sending CMSS’s Jan-June interest income 14 percent lower to Kc979m.


Operating costs went down by 8 percent annually to Kc667m. “We didn’t have to make any new provisions in H1, on the contrary, we could release some of the reserves we made previously,” said Korinek.


Total assets reached Kc147.1bn. Loans amounted to Kc113.4bn and deposits totalled Kc135.9bn.


Set up in 1993, CMSS has some 1.3 million clients. Its shareholders are CSOB bank (55 pct) and Bausparkasse Schwabisch Hall AG (45 pct).