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Ceska Sporitelna

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Ceska Sporitelna

Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 621 branches and 1,589 ATMs, it serviced nearly 5 million retail clients at the end of 2015. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000. Since the takeover, Česká Spořitelna's net profit has increased dramatically and the

Read more »
Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 621 branches and 1,589 ATMs, it serviced nearly 5 million retail clients at the end of 2015. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000. Since the takeover, Česká Spořitelna's net profit has increased dramatically and the average ROE reached nearly 19% in between 2006-2015. The bank is well capitalised (with a capital adequacy ratio exceeding 21%) and very well funded (with loans to deposits at only 75%) and has been lending cautiously since its privatisation (non-performing loans accounted for only 4.1% of total at the end of 2015)

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AnnualQuarterly
summary Unit
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

income statement

... ...                       31,235 29,653 27,910 26,672 25,864    
... ...                       44,064 43,571 41,886 41,138 39,743    
... ...                       25,640 25,312 24,292 22,904 21,157    
... ...                       13,638 16,612 15,588 15,070 14,293    

balance sheet

... ... ... ...                   77,433 65,320 75,393 38,533 34,717    
... ...                       465,565 470,859 489,194 500,039 532,524    
... ... ... ...                   275,458 323,598 289,947 276,183 255,335    
... ...                       892,598 920,403 968,723 902,589 959,584    
... ...                       79,862 93,312 100,978 107,783 119,963    
... ... ... ...                   52,862 44,344 73,036 54,570 83,915    
... ...                       672,280 704,532 726,592 680,439 713,836    
... ...                       48,122 38,413 30,464 23,833 15,493    

ratios

... ...                       18.1% 19.2% 16.0% 14.4% 12.6%    
... ...                       1.54% 1.83% 1.65% 1.61% 1.54%    
... ...                       2.08% 2.01% 1.86% 1.95% 2.00%    
... ...                       41.8% 41.9% 42.0% 44.3% 46.8%    
... ...                       13.6% 16.1% 18.6% 18.5% 21.3%    
... ...                       3.52% 3.27% 2.95% 2.85% 2.78%    
... ...                       70.9% 68.1% 66.6% 64.8% 65.1%    
... ...                       28.1% 27.0% 27.0% 27.5% 25.8%    
... ...                       48.0% 48.1% 51.2% 47.3% 47.4%    
... ...                       8.95% 10.1% 10.4% 11.9% 12.5%    
... ...                       69.3% 66.8% 67.3% 73.5% 74.6%    
... ...                       52.2% 51.2% 50.5% 55.4% 55.5%    
... ...                       5.70% 5.45% 4.87% 4.43% 3.82%    
... ...                       60.0% 63.1% 67.6% 70.7% 73.0%    

Download Data
income statement Unit
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

income statement

Interest Income CZK mil
Interest Cost CZK mil
Net Interest Income CZK mil
Net Fee Income CZK mil
Other Income CZK mil
Total Revenues CZK mil
Staff Cost CZK mil
Depreciation CZK mil
Other Cost CZK mil
Operating Cost CZK mil
Operating Profit CZK mil
Provisions CZK mil
Extra and Other Cost CZK mil
Pre-Tax Profit CZK mil
Tax CZK mil
Minorities CZK mil
Net Profit CZK mil
Dividends CZK mil
... ...                       39,555 36,777 33,348 30,832 28,974    
... ...                       8,320 7,124 5,438 4,160 3,110    
... ...                       31,235 29,653 27,910 26,672 25,864    
... ...                       12,381 11,769 11,294 11,306 10,254    
... ...                       448 2,150 2,682 3,160 3,625    
... ...                       44,064 43,571 41,886 41,138 39,743    
... ...                       8,852 8,783 9,013 8,632 8,804    
... ...                       2,405 2,201 2,061 2,271 2,154    
... ...                       7,167 7,275 6,520 7,331 7,628    
... ...                       18,424 18,259 17,594 18,234 18,586    
... ...                       25,640 25,312 24,292 22,904 21,157    
... ...                       16,476 16,795 16,679 16,189 15,261    
... ...                       3,069 1,027 1,480 456 569    
... ...                       17,070 20,578 19,481 18,720 17,940    
... ...                       3,565 4,175 3,904 3,650 3,645    
... ...                       133 209 11.5 -1.00 2.00    
... ...                       13,638 16,612 15,588 15,070 14,293    
... ... ...                     4,560 7,600 9,120 11,400 13,423 ...  

growth rates

... ... ...                     2.88% -5.07% -5.88% -4.44% -3.03%    
... ... ...                     1.76% -4.95% -4.03% 0.107% -9.30%    
... ... ...                     -2.97% -1.12% -3.87% -1.79% -3.39%    
... ... ...                     -1.35% -0.897% -3.64% 3.64% 1.93%    
... ... ...                     -4.11% -1.28% -4.03% -5.71% -7.63%    
... ... ...                     16.4% 20.6% -5.33% -3.91% -4.17%    
... ... ...                     13.2% 21.8% -6.16% -3.32% -5.16%    

market share

... ...                       27.2% 26.1% 24.9% 24.5% 22.7% ... ...
... ...                       25.6% 25.8% 25.4% 23.9% 21.4% ... ...
                          26.4% 26.7% 26.5% 25.9% 25.5% ... ...
                          32.3% 31.3% 31.5% 28.5% ... ... ...
... ...                       34.8% 34.2% 36.7% 32.7% ... ... ...
... ...                       21.5% 18.5% 15.4% 14.3% ... ... ...
                          31.9% 31.3% 29.3% 29.1% 28.7% ... ...

Download Data
balance sheet Unit
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

balance sheet

... ... ... ...                   31,936 22,501 77,581 54,489 111,027    
... ... ... ...                   77,433 65,320 75,393 38,533 34,717    
... ...                       465,565 470,859 489,194 500,039 532,524    
... ...                       127,569 139,158 155,099 167,160 186,813    
... ... ... ... ... ...               77,380 72,490 69,740 67,356 64,716    
... ...                       179,493 185,425 196,839 198,044 207,572   ...
... ... ... ...                   275,458 323,598 289,947 276,183 255,335    
... ... ... ... ...                 13,427 12,686 13,732 13,431 12,318    
... ...                       892,598 920,403 968,723 902,589 959,584    
... ...                       79,862 93,312 100,978 107,783 119,963    
... ...                       26.0 122 316 -26.0 -23.0    
... ...                       812,736 827,092 867,745 794,806 839,621    
... ... ... ...                   52,862 44,344 73,036 54,570 83,915    
... ...                       672,280 704,532 726,592 680,439 713,836    
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...  
... ... ... ... ... ... ... ... ...   ... ... ... ... ... ... ... ... ...  
... ...                       48,122 38,413 30,464 23,833 15,493    
... ... ... ...                   39,472 39,802 37,653 35,964 26,377    

asset quality

Non-Performing Loans CZK mil
Gross Loans CZK mil
Provisions CZK mil
... ...                       27,474 26,598 24,657 22,894 20,905    
... ...                       482,041 487,654 505,872 516,228 547,785    
... ...                       16,476 16,795 16,679 16,189 15,261    

growth rates

... ... ...                     5.61% 1.14% 3.89% 2.22% 6.50%    
... ... ...                     0.929% 0.984% 4.62% 2.95% 6.43%    
... ... ...                     8.57% 9.08% 11.5% 7.78% 11.8%    
... ... ... ... ... ... ...             0.444% -6.32% -3.79% -3.42% -3.92%    
... ... ...                     13.8% 3.30% 6.16% 0.612% 4.81%   ...
... ... ...                     1.24% 3.12% 5.25% -6.83% 6.31%    
... ... ...                     12.6% 16.8% 8.22% 6.74% 11.3%    
... ... ...                     0.232% 4.80% 3.13% -6.35% 4.91%    

market share

... ...                       21.2% 20.9% 19.7% 19.2% 19.4% ... ...
... ...                       21.7% 22.2% 22.7% 22.6% 22.5% ... ...
... ... ... ... ... ...               23.8% 22.3% 21.1% 20.5% 18.5% ... ...
... ...                       23.8% 23.2% 23.3% 23.1% 22.9% ... ...
... ...                       16.5% 17.2% 18.2% 18.6% 19.2% ... ...
... ...                       19.9% 19.9% 18.8% 17.0% 17.5% ... ...
... ...                       25.0% 25.0% 23.8% 21.2% 20.9% ... ...
... ... ... ... ... ... ... ... ...   ... ... ... ... ... ... ... ... ... ...

Download Data
ratios Unit
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ratios

... ...                       18.1% 19.2% 16.0% 14.4% 12.6%    
... ...                       1.54% 1.83% 1.65% 1.61% 1.54%    
... ...                       2.08% 2.01% 1.86% 1.95% 2.00%    
... ...                       41.8% 41.9% 42.0% 44.3% 46.8%    
... ...                       13.6% 16.1% 18.6% 18.5% 21.3%    
... ...                       13.6% 15.5% 17.3% 18.4% 21.2%    
... ...                       3.52% 3.27% 2.95% 2.85% 2.78%    
... ... ...                     3.43% 3.19% 2.89% 2.79% 2.73%    
... ...                       4.46% 4.06% 3.53% 3.30% 3.11%    
... ... ...                     1.03% 0.869% 0.642% 0.500% 0.381%    
... ... ...                     33.4% 45.7% 58.5% 75.6% 93.9% ...  
... ...                       70.9% 68.1% 66.6% 64.8% 65.1%    
... ...                       28.1% 27.0% 27.0% 27.5% 25.8%    
... ...                       1.02% 4.93% 6.40% 7.68% 9.12%    
... ...                       3,951 3,478 3,604 3,214 2,927    
... ...                       69,881 68,024 70,520 68,698 69,866    
... ...                       48.0% 48.1% 51.2% 47.3% 47.4%    
... ...                       8.95% 10.1% 10.4% 11.9% 12.5%    
... ...                       69.3% 66.8% 67.3% 73.5% 74.6%    
... ...                       52.2% 51.2% 50.5% 55.4% 55.5%    
... ...                       5.70% 5.45% 4.87% 4.43% 3.82%    
... ...                       60.0% 63.1% 67.6% 70.7% 73.0%    
... ...                       3.54% 3.57% 3.41% 3.24% 2.87%    
... ...                       1.21% 0.792% 0.694% 0.754% 0.513%    

Download Data
other data Unit
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

other data

                          654 658 653 644 621    
                          10,556 10,760 10,651 10,471 10,501    
... ... ... ...                   1,413 1,466 1,530 1,561 1,589    
... ... ...                     5.20 5.30 5.26 4.92 4.79 ... ...
... ... ... ... ... ... ...             1.41 1.48 1.59 1.76 1.66 ... ...
                          3,174 3,178 3,234 3,145 3,119    
... ...                       2,782 2,830 2,914 2,855 2,850 ... ...
... ...                       392 348 319 290 269 ... ...
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...    

Download Data
Ceska Sporitelna in Numbers

This Statistical Dossier offers a summary of Ceska Sporitelna's performance between 2000 and 2015, both on a quarterly as well as an annual basis. The report can be downloaded in Excel file format.

You will find here all the key numbers from the bank's balance sheet, income statement and the main ratios related to the bank's business such as asset quality, capital

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This Statistical Dossier offers a summary of Ceska Sporitelna's performance between 2000 and 2015, both on a quarterly as well as an annual basis. The report can be downloaded in Excel file format.

You will find here all the key numbers from the bank's balance sheet, income statement and the main ratios related to the bank's business such as asset quality, capital ratios, number and cost of employees or a detailed breakdown of some of the Bank's businesses such as its loan portfolio. In addition, the Excel file provides a detailed overview of the bank's market position in comparison with the overall banking sector. You can, for example, track CS's market position in mortgage or consumer lending.

If you are only interested in specific areas of the Bank's business, you find and download them at the Bank's Corporate Profile.

If you want to see more reports about the Bank, please, go to the Bank's Reports Page.

Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 621 branches and 1,589 ATMs, it serviced nearly 5 million retail clients at the end of 2015. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000. Since the takeover, Česká Spořitelna's net profit has increased dramatically and the average ROE reached nearly 19% in between 2006-2015. The bank is well capitalised (with a capital adequacy ratio exceeding 21%) and very well funded (with loans to deposits at only 75%) and has been lending cautiously since its privatisation (non-performing loans accounted for only 4.1% of total at the end of 2015)

Czech Banking - Analysis of 3Q2014

This report analyses the main trends in the Czech banking with a special focus on the 3Q2014's performance. In the 108-page report, you will find all the necessary details regarding profitability of the sector, breakdown and trends of the volume growth, market share, margin and asset quality development in the sector and within the particular segments of the market.

In

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This report analyses the main trends in the Czech banking with a special focus on the 3Q2014's performance. In the 108-page report, you will find all the necessary details regarding profitability of the sector, breakdown and trends of the volume growth, market share, margin and asset quality development in the sector and within the particular segments of the market.

In addition, you will find here financials and market share of the 20 banks we cover in the Czech Republic including all key ratios describing their business. The report includes 446 charts and 40 tables.

The key points are:

  • Czech commercial banks announced a net profit of CZK 14,387 mil in the third quarter of the year, up 3.5% compared to the same period last year. In the first nine months of the year, however, the banks' profit dropped 0.8% yoy to CZK 50,258 mil. This implies an annualised ROE of 11.6% for the last 12 months.
  • Loans grew 0.6% qoq (or 5.2% yoy) in the third quarter. Mortgages still drive the volume growth (creating 90% of the loan growth in the 3rd quarter and 57% ytd) while corporate loans and consumer lending stagnate.
  • The weak momentum is especially disappointing as the economy picks up. Banks are overcapitalized (CAR at 18%) and have plenty of cheap deposits to play with (with loans accounting for 76% of deposits only).
  • In addition, asset quality remains of little concern. Non-performing loans account for 6.2% of total loans while half of them are covered by loan provisions.
  • The trio of the largest banks (Sporitelna, CSOB and Komercni Banka) created 70% of the quarterly profit and 66% of loan growth in the third quarter of the year. Despite losing market share in revenue or overall assets, their market dominance continues. On the other hand, small players finally seem to be challenging the "boring" status quo.

You might also find all banks' financials in the Company section at www.helgilibrary.com/companies, and key charts for each bank at www.helgilibrary.com/charts.

The report is free to download, just register at our webpage.

Česká spořitelna - Analysis of 3Q2014 Performance

This report analyses the performance of the Bank for the 3Q2014. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the Bank.

The key highlights are:

Spořitelna's 3Q14 profit grows nearly 4% yoy..

Česká spořitelna reported

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This report analyses the performance of the Bank for the 3Q2014. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the Bank.

The key highlights are:

Spořitelna's 3Q14 profit grows nearly 4% yoy..

Česká spořitelna reported a net profit of CZK 3,447 mil. in 3Q14, the highest among the large Czech banks this quarter. This is up 3.8% yoy when compared to last year. Since revenue and operating profit were down 2.6% and 6.5% yoy respectively, the net profit growth was driven only by the development in the area of other operating income such as revaluation of securities, or other income

The overall profitability and efficiency of the bank remain impressive. ROE reached 15% at the end of September while cost to income ratio remains at below 44%, an impressive figure for a retail bank

...but balance sheet momentum is a worry

Weak momentum remains the biggest worry for Česká spořitelna in our view. The bank's loan book grows more slowly than the market while deposits have been falling in absolute terms this year.

While deposit growth is partly a result of accounting changes (reclassification of pension fund deposits), the weak lending growth is truly disappointing. That is especially the case as most of the market growth comes from retail, the area in which Spořitelna has been historically strong.

In the last two quarters, for example, Spořitelna sold fewer mortgages than the more corporate-oriented Komerční banka (both in volume of loans as well as number of mortgages).

As a result, Česká spořitelna's market position continues to deteriorate:

Not that the bank suffers from a lack of capital or funding. With capital adequacy exceeding 18% and loans accounting for 73% of deposits only, the bank is well positioned to grow faster.

Asset quality slightly deteriorates

The conservative approach of the bank is partly reflected in asset quality developement. The volume of non-performing loans dropped by more than CZK 3.5 bil. in the last twelve months - the highest among Czech banks.

In addition, Česká spořitelna's provision coverage of 80% (of NPLs) is the second highest on the market (just behind Air Bank).

You will find more details about the bank at www.helgilibrary.com/companies

Stavebni Sporitelna Ceske Sporitelny at a Glance

Stavební Spořitelna České Spořitelny is the third largest building savings bank in the Czech Republic in terms of assets. Once the second largest building savings bank on the market (with a share of nearly 19% of lending in 2008), the subsidiary of Česká Spořitelna has been losing its position in housing lending as part

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Stavební Spořitelna České Spořitelny is the third largest building savings bank in the Czech Republic in terms of assets. Once the second largest building savings bank on the market (with a share of nearly 19% of lending in 2008), the subsidiary of Česká Spořitelna has been losing its position in housing lending as part of the overall strategy of Česká Spořitelna to retreat from the area of housing finance. At the end of 2012, the bank held only 13.4% of the lending market compared to impressive 22% of he market on the deposit side. Until 2011, Stavební Spořitelna České Spořitelny had been the most profitable (measured by ROE) and the best capitalised (by capital adequacy ratio) building savings bank on the market.

This report offers a summary of the company's performance in 2000-2012. You will find here all the key numbers from the bank's balance sheet, income statement and main ratios related to the bank's business.

In addition, the report provides a detailed overview of the bank's market position in the comparison with the overall banking sector and within the business of building savings.

Ceska Sporitelna at a Glance

Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 658 branches and 1,466 ATMs, it serviced more than 5 million retail clients at the end of 2012. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000.

Since the

Read more »

Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 658 branches and 1,466 ATMs, it serviced more than 5 million retail clients at the end of 2012. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000.

Since the takeover, Česká Spořitelna's net profit has increased dramatically and the average ROE exceeded 20% until 2012. The bank is well capitalised (with a capital adequacy ratio exceeding 16%) and very well funded (with loans to deposits at only 67%) and has been lending cautiously since its privatisation (non-performing loans accounted for only 5.8% of total at the end of 2012). Česká Spořitelna remains a flagship of Erste Bank Group contributing more than a third the group's total profit.

This report offers a summary of the bank's performance in 2000-2012. You will find here all the key numbers from the bank's balance sheet, income statement and main ratios related to the bank's business.

In addition, the report provides a detailed overview of the bank's market position in the comparison with the overall banking sector and the key statistics of the whole banking system in the Czech Republic.

Ceska Sporitelna in Numbers

Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 658 branches and 1,466 ATMs, it serviced more than 5 million retail clients at the end of 2012. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000.

Read more »

Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 658 branches and 1,466 ATMs, it serviced more than 5 million retail clients at the end of 2012. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000.

Since the takeover, Česká Spořitelna's net profit has increased dramatically and the average ROE exceeded 20% until 2012. The bank is well capitalised (with a capital adequacy ratio exceeding 16%) and very well funded (with loans to deposits at only 67%) and has been lending cautiously since its privatisation (non-performing loans accounted for only 5.8% of total at the end of 2012).

This excel file offers a summary of the company's performance in between 1Q2000-1Q2013, both on the quarterly as well as the annual basis. You will find here all the key numbers from the bank's balance sheet, income statement and main ratios related to the bank's business. In addition, the file provides a detailed overview of the bank's market position in the comparison with the overall banking sector.

Ceska Sporitelna - Analysis of Mortgage Lending in 1Q13

This report analyses the housing lending in the Czech Republic for the 1Q2013. You will find all the necessary details regarding volume growth (for both, the mortgage as well as Building Society lending), market share, margin and asset quality development in the mortgage segment. Also, based on the example of Hypotecni Banka, we calculate profitability of the mortgage

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This report analyses the housing lending in the Czech Republic for the 1Q2013. You will find all the necessary details regarding volume growth (for both, the mortgage as well as Building Society lending), market share, margin and asset quality development in the mortgage segment. Also, based on the example of Hypotecni Banka, we calculate profitability of the mortgage busines for each bank.

This report focuses specifically on development in Ceska Sporitelna in the 1Q2013. The key highlights are:

Housing lending momentum deteriorates...

Česká Spořitelna’s mortgage loans increased 1.9% qoq and 8.4% yoy in 1Q13, slightly more than the overall market. On the other hand, the loans provided by Spořitelna’s building society dropped further 1.7% qoq and 4.5% yoy.

...but Spořitelna gains market share

Following the relatively weak years 2008-2010, Česká Spořitelna started gaining market share in 2011. In 2012, the bank grabbed nearly 28% of the annual increase in the mortgage loan book. The positive trend continued in 1Q13 and Spořitelna crossed 20% threshold in March in terms of market share, according to our calculations.

The bank is clearly benefiting from its superior funding and capital position when compared to the smaller players. In terms of new production, Spořitelna was nearly as aggressive as ČSOB in the last two quarters, selling 28% of all new loans.

In addition, Spořitelna has been beating ČSOB for the second quarter in a row in terms of new mortgage contracts signed. The bank sold 15% more loans in the last six months than ČSOB, what demonstrates the appetite Spořitelna has been getting in the mortgage lending:

Mortgage lending – 12% of Spořitelna’s profit?

Mortgage loans represented 30.1% of Spořitelna’s total loans at the end of March 2013. That is up from the figure of 9% seen a decade ago and at a very similar level compared to Komerční Banka, for example.

The massive growth in volumes made a difference to the bottom line of the bank. When Hypoteční banka’s financials are taken as a benchmark (for more details see page 9), we believe the mortgage lending business generates around 12-13% of Česká Spořitelna’s overall profitability now.

This is less than the 24% of Raiffeisenbank and 20% of ČSOB and also less than the 14% we estimate for Komerční Banka.

Apart from the relatively stronger position of ČSOB in mortgage lending (with a 26% share of the market versus the 20% share of Spořitelna), Česká Spořitelna is benefiting from stronger profitability elsewhere (such as on its cheaper deposit base).

Analysis of Mortgage Lending in 1Q13

This report analyses the housing lending in the Czech Republic for the 1Q2013. You will find all the necessary details regarding volume growth (for both, the mortgage as well as Building Society lending), market share, margin and asset quality development in the mortgage segment. Also, based on the example of Hypotecni Banka, we calculate profitability of the mortgage

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This report analyses the housing lending in the Czech Republic for the 1Q2013. You will find all the necessary details regarding volume growth (for both, the mortgage as well as Building Society lending), market share, margin and asset quality development in the mortgage segment. Also, based on the example of Hypotecni Banka, we calculate profitability of the mortgage business for each bank.

This report provides a summary of the development in the 1Q2013. The key highlights are:

  • Mortgage loans increased by less than 1% qoq in the seasonally weakest quarter of the year, but the overall momentum stabilized. The annual increase remained unchanged at 6.3% yoy and sales of new loans of CZK 27.8 bil were nearly as high as in the same quarter last year:
  • Mortgage loans reached 18.2% of GDP at the end of March 2013, or more than a third of bank loans when other housing loans are included. Nearly 15% of Czech households have a mortgage loan now, while more than 14% of residential dwellings were financed through a mortgage loan, according to our calculations.
  • The average interest rate on mortgage loans continues to decline in line with the overall market trends. It reached 3.17% in 1Q13 while the average interest rate on the total mortgage loan stock dropped below 4.5%. This would imply that new loans were sold still with a decent 220 bp margin over a 5-year swap in 1Q13.
  • The share of non-performing loans increased slightly in the 1Q13, from 3.16% to 3.30% of total mortgage loans at the end of March. This is a result of the overall low indebtedness of Czech households, strict lending procedures and only a mild fall in real estate prices. Czech housing affordability remains one of the best in Europe.
  • As mortgage loans have grown to a sizable amount, the business  has become much more cost-efficient and profitable. We estimate mortgage business generates ROE of over 20% and contributes around 15% to the banking sector’s bottom line. LBBW and Raiffeisen seem to generate over 20% of their profits from mortgages when Hypoteční Banka’s results are taken as a guide.
  • The three largest banks (ČSOB, Česká Spořitelna and Komerční banka) further cemented their market position in 1Q13 taking their share to 65.4%.  ČSOB remains the leader closely followed by Spořitelna. In 1Q13, Raiffeisen confirmed its turnaround while GE Money Bank continued losing its market position the most.
Ceska Sporitelna at a Glance

Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 658 branches and 1,466 ATMs, it serviced more than 5 million retail clients at the end of 2012. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000.

Since the

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Česká Spořitelna is the largest retail bank in the Czech Republic. Through a network of 658 branches and 1,466 ATMs, it serviced more than 5 million retail clients at the end of 2012. Following hefty loan losses and a government-orchestrated bailout at the end of the 1990s, the bank was sold to Austria's Erste Bank in 2000.

Since the takeover, Česká Spořitelna's net profit has increased dramatically and the average ROE exceeded 20% until 2012. The bank is well capitalised (with a capital adequacy ratio exceeding 16%) and very well funded (with loans to deposits at only 67%) and has been lending cautiously since its privatisation (non-performing loans accounted for only 5.8% of total at the end of 2012).

This report offers a summary of the company's performance in 2008-2012. You will find here all the key numbers from the bank's balance sheet, income statement and main ratios related to the bank's business. In addition, the report provides a detailed overview of the bank's market position in the comparison with the overall banking sector.

Stavebni Sporitelna Ceske Sporitelny - Analysis of Building Savings in 4Q12

This report analyses the building savings business in the Czech Republic for the 4Q2012. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the building savings (as well as mortgage lending segment). Also, the report compares profitability and efficiency ratio of the largest player CMSS with the main

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This report analyses the building savings business in the Czech Republic for the 4Q2012. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the building savings (as well as mortgage lending segment). Also, the report compares profitability and efficiency ratio of the largest player CMSS with the main player in the mortgage lending business - Hypotecni Banka to find out how market dominance translates into economies of scale and superior profitability.

The key highlights from 4Q2012 we discuss in this report are:

• The business remains under pressure in spite of its impressive profitability. ROE fell to 15.2% in 2012 and net profit dropped 6% yoy in 4Q

• Lending continues to fall and is losing to mortgages. In 4Q12, the annual decline deepened to 3.3% yoy

• 4Q12 confirmed a recovery in terms of the number of new contracts sold, while deposits grew by a seasonally strong 3.2% qoq

• ČMSS remains the leader, but Raiffeisen grabs most of the growth

This report focuses specifically on development in Burinka in 4Q2012, the building savings bank of Ceska Sporitelna. The main conclusions are: 

Market position

Stavební Spořitelna České Spořitelny (also called Buřinka, a bowler) is the third largest building savings bank in terms of assets. Once the second largest building savings bank on the market (with a share of nearly 19% of lending in 2008), the subsidiary of Česká Spořitelna has been losing its position in housing lending as part of the overall strategy of Česká Spořitelna to retreat from the area of housing finance.

At the end of 2012, the bank held only 13.4% of the lending market. The bank therefore gave up a further 32 bp of its market share during the year; however, 4Q suggests a stabilisation of the bank’s position (flat qoq). On the deposit market, the bank still maintains an impressive 22% share, up 22 bp qoq but down 6 bp in 2012.

Because of the market’s slowdown and its weakening market position, the bank’s overall balance sheet momentum remains negative. Loans declined by a further 0.8% qoq in the last quarter and the full-year decline reached 5.6% yoy, while overall deposits increased 2.6% in 4Q, but dropped 0.3% in 2012.

Profitability

Until 2011, Stavební Spořitelna České Spořitelny had been the most profitable (measured by ROE) and the best capitalised (by capital adequacy ratio) building savings bank on the market.

However, despite the negative momentum the bank is facing and the fact that the bank’s net profit dropped 23% yoy in 2012, the bank still achieved an impressive ROE of 15.7% in 2012! This is a remarkable achievement given the fact that the bank’s capital adequacy has been exceeding 17%.

When adjusted for a surplus of capital (when ROE is adjusted to the building savings market average for each bank), Stavební Spořitelna České Spořitelny is still the third most profitable one on the market.

Buřinka’s numbers are especially impressive on the cost side, which we describe on the right. This might be a result of accounting, rather than of real efficiency.

Asset quality

Asset quality remains one of the weakest links of the bank. Non-performing loans rose CZK 79 mil, or 4.8%, in 4Q, the most on the market, and reached 4.13% of total loans (up from 3.72% at the end of 2011), which is the worst result within building savings  banks. Provision coverage remains relatively weak at nearly 52%, compared to the 53% of the market.

Cost-efficiency

Stavební Spořitelna České Spořitelny has been running its business 40-50% more efficiently than the rest of the market when measured by its costs-to-assets ratio in recent years. In 2012, the bank‘s operating costs amounted to 0.45% of average assets. compared to the 0.73% achieved by the market.

However good and efficient the bank is, we believe it has more to do with internal cost allocation within the Česká Spořitelna group, rather than with Buřinka’s underlying efficiency. Anyway, this, together with loan book development, are the main things to watch for here.

Based on a comparison of 23 banks in the Czech Republic in 2016, Ceska Sporitelna generated the largest revenues, followed by CSOB and Komercni Banka.

Ceska Sporitelna made reported total revenues of CZK 38,227 mil, down 3.81%

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Based on a comparison of 23 banks in the Czech Republic in 2016, Ceska Sporitelna generated the largest revenues, followed by CSOB and Komercni Banka.

Ceska Sporitelna made reported total revenues of CZK 38,227 mil, down 3.81% when compared to the last year. Historically, the bank’s revenues containing of interest, fee and other non-interest income reached an all time high of CZK 45,650 mil in 2009 and an all time low of CZK 19,112 mil in 2000. The average revenue in the last five years amounted to CZK 40,913 mil.

Bank's total revenues accounted for 3.58% of total assets in 2016, down from 4.14% a year earlier.

When compared to the nearest peers, CSOB generated total revenues of CZK 34,043 mil, or 3.14% of assets in 2016, Komercni Banka operated with CZK 31,753 mil total income, or 3.44% revenue margin and UniCredit Czech Republic produced total income worth CZK 17,877 mil, or 2.82% of assets.

Czech banking sector generated total revenues of CZK 180,186 mil in 2016, up 3.46% when compared to the last year. As a result, the top ranked company - Ceska Sporitelna accounted for 21.2% of the sector’s total income in 2016. The top 3 companies hold a 57.7% share while the five largest firms some 73.8% in 2016.

You can see all the banks revenues data at Total Revenues indicator page or you can download a report on the Czech banks in the report section.

Based on a comparison of 23 banks in the Czech Republic in 2016, Ceska Sporitelna generated the largest fee income, followed by Komercni Banka and CSOB.

Ceska Sporitelna made reported total fee income of CZK 9,308 mil, down

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Based on a comparison of 23 banks in the Czech Republic in 2016, Ceska Sporitelna generated the largest fee income, followed by Komercni Banka and CSOB.

Ceska Sporitelna made reported total fee income of CZK 9,308 mil, down 9.23% when compared to the last year. Historically, the bank’s fee income reached an all time high of CZK 12,381 mil in 2011 and an all time low of CZK 5,120 mil in 2000.

When compared to the nearest peers, Komercni Banka generated total fee income of CZK 6,683 mil, CSOB operated with CZK 6,218 mil fee income and UniCredit Czech Republic produced total fees worth CZK 3,823 mil.

You can see all the banks fee income data at Fee Income indicator page or you can download a report on the Czech banks in the report section.

Based on a comparison of 23 banks in the Czech Republic, Ceska Sporitelna produced the highest net profit in 2016, followed by CSOB and Komercni Banka.

Ceska Sporitelna made a net profit of CZK 15,457 mil, up 8.14% when compared

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Based on a comparison of 23 banks in the Czech Republic, Ceska Sporitelna produced the highest net profit in 2016, followed by CSOB and Komercni Banka.

Ceska Sporitelna made a net profit of CZK 15,457 mil, up 8.14% when compared to the last year. Historically, the bank’s net profit reached an all time high of CZK 16,612 mil in 2012 and an all time low of CZK 41.0 mil in 2000. The average profit in the last five years amounted to CZK 15,404 mil.

The bank generated its shareholders an average return on equity of 15.0%. in the last five years with maximum at 19.2% and minimum at 12.6%.

When compared to the nearest peers, CSOB generated a net profit of CZK 15,141 mil with ROE of 16.9% in 2016, Komercni Banka netted CZK 13,689 mil (ROE of 12.9%) and UniCredit Czech Republic announced a net profit of CZK 6,045 mil implying ROE of 9.42%.

Net profit of the Czechia’s banking sector amounted to CZK 73,525 mil in 2016, up 10.8% when compared to the last year. As a result, the top ranked company - Ceska Sporitelna accounted for 21.0% of the sector’s net profit in 2016. The top 3 companies hold a 60.2% share while the five largest firms some 74.0% in 2016.

You can see all the banks net profit data at Net Profit indicator page or you can download a report on the Czech banks in the report section.

Ceska Sporitelna's loans reached CZK 619,194 mil in the second quarter of 2017, up from CZK 603,880 mil when compared to the previous quarter and up from CZK 566,901 mil when compared to the same period of last year. Historically,

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Ceska Sporitelna's loans reached CZK 619,194 mil in the second quarter of 2017, up from CZK 603,880 mil when compared to the previous quarter and up from CZK 566,901 mil when compared to the same period of last year. Historically, the bank’s loans reached an all time high of CZK 619,194 mil in 2Q2017 and an all time low of CZK 345,392 mil in 1Q2007.

In the last decade, the average annual loan growth amounted to 5.86%.

At the end of second quarter of 2017, Ceska Sporitelna's loans accounted for 72.6% of total deposits and 48.6% of total assets.

Mortgage loans represented 35.7% of the bank's loan book at the end of the year 2Q2017, consumer further 10.4% and corporate loans 39.4% of total loans.

You can see all the bank’s data at Ceska Sporitelna profile, or you can download a report on the bank in the report section.

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