CNB: Banks' net profit up 22% to CZK 25.9 billion in Q1

The aggregate net profit of banks and savings banks in the Czech Republic rose by CZK 4.75 billion, or 22 per cent, to CZK 25.9 billion in the first quarter of this year. This is based on data published by the Czech National Bank. The balance sheet total of banks at the end of March amounted to CZK 10.512 trillion, a year-on-year increase of CZK 767 billion.

Banks' profit from financial and operating activities rose by 4.4 billion to 60.2 billion crowns in the first quarter year-on-year. Their interest income increased by 15.4 billion to 145.8 billion crowns, while fee and commission income rose by 1.5 billion to 14.8 billion crowns.

"Due to the development of interest rates, banks were no longer able to generate an increase in net interest income. Higher fee and commission income contributed to the good result," Cyrrus analyst Tomáš Pfeiler commented on the results of the largest banks. According to him, the financial houses managed to keep costs at bay, which also had a positive impact on the performance. Lending activity needs to improve in order for profits to grow again in the future, he added.

"The banks have had an excellent first quarter. Their profitability grew thanks to more interest in investment products, from which banks earned fees," said XTB analyst Tomas Cverna.

Among the largest banks, Česká spořitelna's net profit rose 73.3 percent to CZK 5.7 billion this year, CSOB's 14 percent to CZK 4.1 billion, Raiffeisenbank's 62 percent to CZK 1.4 billion, UniCredit Bank in the Czech Republic and Slovakia's 10 percent to CZK 2.6 billion and Moneta Money Bank's 5.8 percent to CZK 1.3 billion. Komerční banka's net profit fell 21.3 percent to CZK 2.8 billion.

Source: CNB and CTK