Profits Down Kc2.3 Billion At Top 4 Banks

Prague, Aug 10 (CTK) – The four largest banks in the Czech Republic made a Kc26.6bn profit in the first half of this year, Kc2.3bn lower than a year earlier, according to the banks’ financial results.


Last year, the high profits of banks in the country were influenced notably by one-off factors, including the end to the Czech National Bank’s (CNB) forex interventions.


In the first half of this year, banks benefitted from raising of interest rates by the CNB, it was reflected in the prices of mortgage loans and other loan products, but not in saving products of clients, BH Securities analyst Stepan Krecek told CTK.


Despite the interest rate rise, some banks were unable to reach profits similar to last year. At that time, most banks profited from currency rate transactions in connection with the end of the forex interventions, he remarked.


“Banks benefitted from ending of the CNB’s forex interventions last year, even when the effect was only transitory,” said Cyrrus analyst Lukas Kovanda.


Foreign speculators created positions at banks for their bets on the crown’s firming when the interventions end. They ended last year in April so the half-yearly result this year is influenced by them in a year-on-year comparison, he added.


Ceska sporitelna raised net profit by 2.6 percent yr/yr to Kc7.9bn in the first half of this year. Together with the growing volume of loan deals, gradually increasing interest income and dissolution of reserves contributed to the growth in net profit.


Net profit of Komercni banka fell by 12.4 percent to Kc6.9bn. Without one-off items like last year’s sale of the headquarters’ building, net profit was 1.2 percent lower.


Net profit of CSOB dropped by 20 percent to Kc7.5bn. Extraordinary incomes last year were the reason for the drop.


UniCredit Bank in the Czech Republic and Slovakia saw its profit rise by 7 percent to Kc4.3bn (EUR168m).


Results of largest banks in CR (Kc bn):


net profit in H1 2018

net profit in H1 2017

net profit in H1 2016





Ceska sporitelna




Komercni banka




UniCredit Bank in CR and Slovakia





Source: banks