J&T Banka produced a record net profit of CZK 2,277 mil in 3Q2022 with ROE of 32.2%.
Revenues increased 141% yoy and cost rose 10.5%, so cost to income decreased to 19.2%
Cost of risk amounted 0.537% and loan to deposit ratio increased to 34%
Max banka increased its net loss to CZK 54.2 mil in 3Q2022 and generated a negative ROE of 10.8%.
Revenues decreased 2.9% yoy and cost rose 22.1%, so cost to income increased to 144%
Cost of risk increased to 0.983% and loan to deposit ratio decreased to 49.4%
PPF Banka almost doubled its net profit to CZK 746 mil in 3Q2022 with ROE of 18.8%.
Revenues increased 78% yoy and cost rose 0.685%, so cost to income decreased to 25.6%
Cost of risk amounted 1.60% and loan to deposit ratio decreased to 28.1%
Fio banka has doubled its net profit to CZK 1.27 bil in 3Q22 generating ROE of 48.7%.
Revenues increased 79.8% yoy and cost rose 18.6%, so cost to income decreased to 17.1%
Cost of risk amounted 0.517% and loans to deposit ratio increased to 18.2%
Air Bank reported record numbers in 3Q2022 with CZK 727 mil net profit and ROE of 25.2%.
Revenues increased 69.1% yoy and cost rose 22.6%, so cost to income decreased to only 33.8%
Cost of risk increased to 1.05% while loan to deposit ratio increased to 56.6%
Hypotecni Banka's net profit rose 59.2% to CZK 737 mil in 3Q2022, the highest figure since 2017
Revenues increased 151% yoy thanks to rising interest rates and other income, cost fell 4.85%
Cost of risk amounted to only 0.091% amid limited asset quality concerns
Banka Creditas booked a record net profit of CZK 1,450 mil in 3Q2022 heavily driven by extra profit
Excluding the one-off, revenues increased 144% yoy, cost rose 7.38% and operating profit reached all-time high of CZK 254 mil
Cost to income decreased to 48.1%and underlying ROE would have reached of 13.6%
Trinity Bank increased its net profit 5-fold to CZK 316 mil in 3Q2022 and generated ROE of 38.8%.
Revenues increased 239% yoy and cost rose 65.2%, so cost to income decreased to 26.3%
Cost of risk amounted 0.339% of loans and loan to deposit ratio decreased to 19.8%
Sales of new cars increased by 23.0 thousand in October compared to last year
In the first ten months of the year, the decline reached 8.72% yoy
Latvia performed relatively the best (up 61.3% yoy) while sales in Slovenia showed the weakest change compared to the last year (down 18.7% yoy)
Raiffeisenbank Czech Republic showed a record net profit of CZK 2,457 mil in 3Q2022 and generated ROE of 20.5%.
Revenues increased 49.7% yoy and cost rose 26.0%, so cost to income decreased to 45.8%
Loan to deposit ratio increased to 71.3% and capital adequacy might have decreased to 20.4%
UniCredit Bank Czecho-Slovakia decreased its net profit 3.04% yoy to CZK 2,104 mil in 3Q2022 and generated ROE of 11.6%.
Revenues increased 2.21% yoy and cost rose 2.10%, so cost to income decreased to 45.6%
Loan to deposit ratio decreased to 65.2% and capital adequacy increased to 22.7%
CSOB decreased its net profit 14.5% to CZK 4,241 mil in 3Q2022 and generated ROE of 17.3%.
Revenues increased 17.5% yoy and cost rose 13.7%, so cost to income decreased to 47.3%
Bad loans fell to 1.36% of total loans and cost of risk amounted 0.277%.
Loan to deposit ratio increased to 83.0% and capital adequacy decreased to 19.6%
MONETA Money Bank decreased its net profit 14.7% to CZK 1,251 mil in 3Q2022 and generated ROE of 17.0%.
Revenues increased 8.67% yoy and cost rose 7.45%, so cost to income decreased to 44.9%
Bad loans fell to 1.40% of total loans and cost of risk amounted 0.186%.
Loan to deposit ratio decreased to 83.8% and capital adequacy decreased to 17.0%
Ceska Sporitelna decreased its net profit 4.54% to CZK 4,020 mil in 3Q2022 and generated ROE of 12.5%.
Revenues increased 15.9% yoy and cost rose 9.28%, so cost to income decreased to 42.7%
Bad loans fell to 1.90% of total loans and cost of risk amounted 0.357%.
Loan to deposit ratio increased to 66.1% and capital adequacy decreased to 19.9%
Komercni Banka rose its net profit 32.8% to CZK 4,650 mil in 3Q2022 and generated ROE of 14.6%.
Revenues increased 25.8% yoy and cost rose 3.80%, so cost to income decreased to 37.2%
Bad loans fell to 2.27% of total loans and cost of risk amounted 0.349%.
Loan to deposit ratio increased to 69.3% and capital adequacy decreased to 21.1%
Sales of electrically-chargeable vehicles amounted to 555 thousand in 3Q2022, 21.5 thousand more than the last year.
Electric cars represented 23.2% of all new cars sold in 3Q2022, up from 22.4% a year ago.
Most electric vehicles have been sold in Germany (182 thousand), while Cyprus registered the biggest increase in sales when compared to last year.
Czech banks increased net profit 53.7% yoy to CZK 31,133 mil in the second quarter of 2022 and generated ROE of 18.2%.
Operating income rose 26.3%, cost to income dropped to 40.3% and banks' share of bad loans fell to 2.27%.
Ceska Sporitelna generated the biggest profit while Max banka produced the biggest loss in 2Q2022.
Sales of new cars increased by 77.2 thousand in September compared to last year
In the first nine months of the year, the decline reached 9.73% yoy
Bulgaria performed relatively the best (up 46.4% yoy) while sales in Norway showed the weakest change compared to the last year (down 18.6% yoy)
Sales of new cars increased by 24.2 thousand in August compared to last year
In the first eight months of the year, the decline reached 11.8% yoy
Portugal performed relatively the best (up 42.4% yoy) while sales in Norway showed the weakest change compared to the last year (down 24.7% yoy)
Sales of new cars decreased by 104 thousand in July compared to last year
In the first seven months of the year, the decline reached 13.3% yoy
Portugal performed relatively the best (up 17.6% yoy) while sales in Lithuania showed the weakest change compared to the last year (down 34.3% yoy)
Sales of new cars decreased by 216 thousand in June compared to last year
In the first six months of the year, the decline reached 13.7% yoy
Iceland performed relatively the best (up 35.7% yoy) while sales in Croatia showed the weakest change compared to the last year (down 28.4% yoy)
Sales of electrically-chargeable vehicles amounted to 545 thousand in 2Q2022, -18.8 thousand less than the last year.
Electric cars represented 21.4% of all new cars sold in 2Q2022, up from 18.4% a year ago.
Most electric vehicles have been sold in Germany (155 thousand), while Romania registered the biggest increase in sales when compared to last year.
Sales of new commercial vehicles reached 147 thousand in May 2022 in the enlarged Europe (EU plus Iceland, Norway and Switzerland), according to ACEA. This is 19.5%, or 35.6 thousand fewer than in the previous year.
Historically, between January 1997 and May 2022, sales of commercial vehicles in Europe reached a high of 296 thousand in March 2017 and a low of 71.0 thousand in April 2020.
So far this year, some 740 thousand vehicles were sold in Europe, down 27.8% yoy.
Sales of new cars decreased by 136 thousand in May compared to last year
In the first five months of the year, the decline reached 12.9% yoy
Iceland performed relatively the best (up 65.9% yoy) while sales in Lithuania showed the weakest change compared to the last year (down 33.1% yoy)
Sales of electrically-chargeable vehicles amounted to 548 thousand in 1Q2022, 101 thousand more than the last year.
Electric cars represented 22.1% of all new cars sold in 1Q2022, up from 16.0% a year ago.
Most electric vehicles have been sold in Germany (152 thousand), while Romania registered the biggest increase in sales when compared to last year.
Sales of new cars decreased by 209 thousand in April compared to last year
In the first four months of the year, the decline reached 13% yoy
Iceland performed relatively the best (up 79.6% yoy) while sales in Lithuania showed the weakest change compared to the last year (down 35.0% yoy)
Sales of new cars decreased by 261 thousand in March compared to last year
In the first three months of the year, the decline reached 10.6% yoy
Iceland performed relatively the best (up 51.6% yoy) while sales in Sweden showed the weakest change compared to the last year (down 39.5% yoy)
Sales of new cars decreased by 46.1 thousand in February compared to last year
In the first two months of the year, the decline reached 3.93% yoy
Iceland performed relatively the best (up 47.3% yoy) while sales in Norway showed the weakest change compared to the last year (down 23.8% yoy)
Sales of new cars decreased by 20.4 thousand in January compared to last year
Slovakia performed relatively the best (up 72.6% yoy) while sales in Greece showed the weakest change compared to the last year (down 28.9% yoy)
Sales of electrically-chargeable vehicles amounted to 666 thousand in 4Q2021, 81.8 thousand more than the last year.
Electric cars represented 28.3% of all new cars sold in 4Q2021, up from 19.2% a year ago.
Most electric vehicles have been sold in Germany (204 thousand), while Lithuania registered the biggest increase in sales when compared to last year.
Sales of new cars decreased by 264 thousand in December compared to last year
This year, the decline reached 1.54% yoy
Iceland performed relatively the best (up 53.9% yoy) while sales in Ireland showed the weakest change compared to the last year (down 82.4% yoy)
Sales of new cars decreased by 183 thousand in November compared to last year
In the first eleven months of the year, the growth reached 0.75% yoy
Iceland performed relatively the best (up 73.8% yoy) while sales in Lithuania showed the weakest change compared to the last year (down 59.1% yoy)
Sales of new cars decreased by 331 thousand in October compared to last year
In the first ten months of the year, the growth reached 2.72% yoy
Ireland performed relatively the best (up 16.7% yoy) while sales in Lithuania showed the weakest change compared to the last year (down 54.8% yoy)
Sales of new cars decreased by 327 thousand in September compared to last year
In the first nine months of the year, the growth reached 6.94% yoy
Norway performed relatively the best (up 15.7% yoy) while sales in Lithuania showed the weakest change compared to the last year (down 56.8% yoy)
Sales of new cars decreased by 160 thousand in August compared to last year
In the first eight months of the year, the growth reached 12.7% yoy
Norway performed relatively the best (up 52.1% yoy) while sales in Portugal showed the weakest change compared to the last year (down 35.8% yoy)
Sales of new cars decreased by 303 thousand in July compared to last year
In the first seven months of the year, the growth reached 16.9% yoy
Ireland performed relatively the best (up 24.8% yoy) while sales in Belgium showed the weakest change compared to the last year (down 38.0% yoy)
Sales of new commercial vehicles reached 208 thousand in June 2021 in the enlarged Europe (EU plus Iceland, Norway and Switzerland), according to ACEA. This is 1.78%, or 3.62 thousand more than in the previous year.
Historically, between January 1997 and June 2021, sales of commercial vehicles in Europe reached a high of 296 thousand in March 2017 and a low of 71.0 thousand in April 2020.
So far this year, some 1,233 thousand vehicles were sold in Europe, up 35.7% yoy.
Sales of new cars increased by 151 thousand in June compared to last year
In the first six months of the year, the growth reached 27.1% yoy
Ireland performed relatively the best (up 174% yoy) while sales in Slovenia showed the weakest change compared to the last year (down 21.2% yoy)
Sales of new commercial vehicles reached 274 thousand in March 2021 in the enlarged Europe (EU plus Iceland, Norway and Switzerland), according to ACEA. This is 88.1%, or 128 thousand more than in the previous year.
Historically, between January 1997 and March 2021, sales of commercial vehicles in Europe reached a high of 296 thousand in March 2017 and a low of 71.0 thousand in April 2020.
So far this year, some 630 thousand vehicles were sold in Europe, up 23.5% yoy.
Sales of new cars increased by 748 thousand in April compared to last year
In the first four months of the year, the growth reached 23.1% yoy
Italy performed relatively the best (up 3,289% yoy) while sales in Sweden showed the weakest change compared to the last year (up 15.6% yoy)
Sales of electrically-chargeable vehicles amounted to 445 thousand in 1Q2021, 222 thousand more than the last year.
Electric cars represented 15.9% of all new cars sold in 1Q2021, up from 8.10% a year ago.
Most electric vehicles have been sold in Germany (143 thousand), while Cyprus registered the biggest increase in sales when compared to last year.
Sales of electrically-chargeable vehicles amounted to 584 thousand in 4Q2020, 406 thousand more than the last year.
Electric cars represented 19.6% of all new cars sold in 4Q2020, up from 5.35% a year ago.
Most electric vehicles have been sold in Germany (190 thousand), while Slovenia registered the biggest increase in sales when compared to last year.
Sales of new cars increased by 535 thousand in March compared to last year
In the first three months of the year, the growth reached 0.849% yoy
Italy performed relatively the best (up 499% yoy) while sales in Netherlands showed the weakest change compared to the last year (down 18.0% yoy)
Sales of new cars decreased by 47.2 thousand in December compared to last year
This year, the decline reached 24.3% yoy
Ireland performed relatively the best (up 168% yoy) while sales in Croatia showed the weakest change compared to the last year (down 49.5% yoy)
Sales of new cars decreased by 163 thousand in November compared to last year
In the first eleven months of the year, the decline reached 26.1% yoy
Norway performed relatively the best (up 24.9% yoy) while sales in Bulgaria showed the weakest change compared to the last year (down 45.2% yoy)
Sales of new cars decreased by 85.8 thousand in October compared to last year
In the first ten months of the year, the decline reached 27.2% yoy
Norway performed relatively the best (up 23.6% yoy) while sales in Latvia showed the weakest change compared to the last year (down 29.3% yoy)
Sales of new cars increased by 14.6 thousand in September compared to last year
In the first nine months of the year, the decline reached 29.3% yoy
Romania performed relatively the best (up 79.9% yoy) while sales in Bulgaria showed the weakest change compared to the last year (down 27.7% yoy)
Sales of new cars decreased by 190 thousand in August compared to last year
In the first eight months of the year, the decline reached 32.9% yoy
Cyprus performed relatively the best (up 14.1% yoy) while sales in Romania showed the weakest change compared to the last year (down 51.9% yoy)
Sales of new cars decreased by 48.5 thousand in July compared to last year
In the first seven months of the year, the decline reached 34.6% yoy
Iceland performed relatively the best (44.5%) while sales in Romania showed the weakest change compared to the last year (-44.2%)
Sales of electrically-chargeable vehicles amounted to 228 thousand in 1Q2020, up by 101 thousand in 1Q2020 compared to last year
Electric cars represented 7.47% of all new cars sold in 1Q2020, up from 3.06% a year ago.
Most electric vehicles have been sold in Germany (52.4 thousand) while France registered the biggest increase in sales when compared to last year.
Sales of new cars decreased by 359 thousand in June compared to last year
In the first six months of the year, the decline reached 39.4% yoy
The smallest decline was seen in France (1.23%) while sales in Portugal dropped the most (-56.2%)
Sales of new cars decreased by 1,053 thousand in April compared to last year
In the first four months of the year, the decline reached 39% yoy
Norway performed relatively the best (-34.0%) while sales in Italy showed the weakest change compared to the last year (-97.5%)
The scale of fiscal support being deployed to fight the Covid-19 economic crisis is huge.
The Czech Government is willing to spend an impressive 20% of GDP, but the what has been accomplished so far is mediocre.
The Government is slow in distributing help to those most in need, lacks expertise and fails to communicate effectively.
Good examples from abroad should be followed, such as teaming up with banks to speed things up.
Philip Morris Czech Republic (PMCR) made a net profit of CZK 4,019 mil under sales of CZK 17.1 bil in 2019
The firm might have sold 27,691 mil cigarettes in 2019, on our estimates
We calculate that the company made revenue of CZK 12.3 and a net profit of CZK 2.90 per pack of cigarettes sold in 2019
PMCR held 41.3% share on the domestic Czech market in 2019 and 54.8% share in Slovakia
New study suggests excessive coffee consumption does not cause arteries to stiffen, putting pressure on the heart
You can drink up to 25 cups of coffee a day without increasing the likelihood of having a heart attack or stroke
When drinking coffee, you will still have a bad breath, though...
Wage growth across Central Europe has sped up to 5-10%, closing the gap again with Western peers.
Cheap and skilled labor has been one of the reasons CEE banks are so cost efficient and profitable.
Could fast growth in wages endangers superior profitability of CEE banking?
Ferrari earned EUR 63,752 per car sold, five times more than Porsche. On the other hand, Volkswagen created the biggest operating profit in 2017 among car manufacturers.
Toyota was the most valuable automotive Company in the world in 2017 while Tesla remains a different species in the pond.
Instead of tracing what has happened since the first visible incidence of ‘Gulenist movement’ (as named by the AKP) and the two elections that took place last year, we would like to focus on what we believe are the key objectives/positions taken by the main player(s?) of the ruling party. We believe it is clear to the market (hopefully by now) that Turkey is an ‘autocratic democracy’ (an oxymoron): the government is elected through a democratic process with an aim to rule as an autocracy.
Irrespective of the ‘office’ held, Mr. Recep Tayyip Erdogan (currently in the office of a neutral President) wants to rule the country despite holding a ceremonial post. The power in Turkey officially rests in the office of Prime Ministership which is occupied by the leader of the ruling party (currently, Mr. Binali Yildirim).
It is an open secret that President Erdogan is trying to engineer amendments in the constitution to ‘upstream’ power to the presidency and rule the country. His actions so far indicate his desire to control and manage outcomes as he sees fit. This is in line with his interference via commentary on interest rates, prosecutorial activities, and strategy towards PKK and Kurdish elements in Turkey, involvement in Syria, etc.
Contrary to common perception, based on real high frequency data and ‘changes’ that we observe, we believe 1) the economic outlook has changed for the better, 2) the legal infrastructure and reforms re financial sector, especially the NPL is in place, and 3) the banks are in advance stages of planning and implementing reduction of NPLs and restart core banking activities.
Instead of updating on the ‘news of the day/week/month’ and or commenting on how/why and what of the outcome of the Brexit vote, we want to focus on three aspects: 1) how it affects UK and what we believe might happen, 2) what is the likely ‘response’ of EU to this event with respect to EU rather than UK, and, 3) Atmosphere.
For all non-financial companies/businesses that we look at, our primary focus is to get a real sense of a business’s ability to generate sustainably equity free-cash flow (‘E-fcf) given a view of macro-economic and competitive scenario. ‘E-fcf’ yield relative to the cost of ‘funds’ (debt) is one of the primary benchmark to sense the relative attractiveness of the investment under consideration.
To us, sustainability of dividend is of paramount importance, and we use our estimate of ‘e-fcf’ to assess sustainability of dividends: ‘e-fcf’ > dividends is the key. We are okay with the companies retaining some ‘e-fcf’ for ‘rainy-days’ or deleveraging for cyclical cushion. However, companies where we see dividends consistently above ‘E-fcf’ we believe are of poor quality and more akin to ‘equity-release’ rather than ‘equity-return’.
Statistical adjustments caught-up with Greece as the ‘money tap’ started to run dry when the GFC unfolded and the financial institutions started to look at how they can shrink their balance sheets. The Greek government declared that it was running fiscal deficits closer to 10% vs. 3% (as per Maastricht criteria), and approached the EU to ask for a programme and help to put Greek back on sound financial footing. The first EU-IMF-ECB (popularly known as Troika) bailout programme was introduced with an austerity plan requiring expenditure and revenue measures. At the same time, ‘non-Greek’ banks were trying to pull-out from Greece, aggravating the impact of austerity measures (revenue side suffered) as corporate Greece was faced to liquidity squeeze.
Instead of repeating the mantra of why investing in this region has a measurably attractive reward to risk profile, valuations are attractive, the underlying economic outlook has more potential to surprise on the upside etc., we would like to take the opportunity here to demonstrate through an example or ‘investment’ thought process (in a Socratic dialogue format).
For better or for worse, the issue of CHF mortgages is blown out of proportion and has become a tri-party football match between the banks, the borrowers and the regulator.
There are two Diamond News In November 2015.
Deutsche Skatbank, in the eastern state of Thuringia, plans to apply a negative rate of interest to current account deposits with balances over EUR 500,000. The bank presumably hopes to nudge savers into other longer-term, less liquid or higher-return investments and make some money by selling these.
Helgi Analytics 
