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CSOB Stavebni Sporitelna - Takeaways from 3Q2022 Results

Jiří Staník
December 8, 2022

CSOB Stavebni Sporitelna decreased its net profit 2.0% to CZK 199 mil and generated ROE of 9.52%.

Revenues increased 41.0% yoy and cost rose 3.99%, so cost to income decreased to 47.8%

Cost of risk amounted 0.320% and loan to deposit ratio increased to 97.0%

Revenues & Costs

Revenues increased 41.0% yoy to CZK 665 mil in the third quarter of 2022 driven purely by higher rates. Net interest income rose 79.2% yoy and formed 93.9% of total with net interest margin increasing 0.842 pp to 1.77% of total assets. Fee income fell 9.22% yoy and tradiong income was CZK 70 mil lower than last year. When compared to three years ago, revenues were down 5.59%:

Average asset yield was 4.46% in the third quarter of 2022 (up from 2.51% a year ago) while cost of funding amounted to 2.86% in 3Q2022 (up from 1.68%).

Costs increased by 3.99% yoy and the bank operated with solid cost to income of 47.8% in the last quarter. Staff cost rose 2.94% as the bank employed 187 persons (down 2.60% yoy),  so average cost per employee reached CZK 120,525 per person per month:

Loans, Deposits and Capitalization

CSOB Stavebni Sporitelna's loans decreased 0.21% qoq and grew 1.1% yoy in the third quarter of 2022 while customer deposit fell 3.5% qoq and 8.7% yoy. That’s compared to average of 2.43% and -0.586% average annual growth seen in the last three years.

At the end of third quarter of 2022, CSOB Stavebni Sporitelna's loans accounted for 97.0% of total deposits and 89.5% of total assets.

Retail loans fell 0.19% qoq and were 1.1% up yoy accounting for almost 100% of the loan book at the end of the third quarter of 2022:

We estimate that CSOB Stavebni Sporitelna has lost 0.196 pp market share in the last twelve months in terms of loans (holding 3.06% of the market at the end of 3Q2022). On the funding side, the bank seems to have lost 0.362 pp and held 2.00% of the deposit market:

Cost of risk reached 0.320% as the Bank put aside CZK 99 mil in provisions. This is the first and significant increase in provisioning, especially, as the Bank was writting back provisions each quarter since the end of 2020. Provisions have "eaten" significant 28.6% of operating profit in the third quarter of 2022.

We therefore estimate CSOB Stavebni Sporitelna's non-performing loans might have increased to 1.9-2.0% of total loans, down from 2.16% when compared to the previous year. Provisions coverage should remain high at around 75.0% of NPLs, on our estimates:

We expect CSOB Stavebni Sporitelna's capital adequacy ratio reached 23.4% in the third quarter of 2022, up from 16.0% for the previous year. Bank equity accounted for 6.82% of loans at the end of the quarter:


Overall, CSOB Stavebni Sporitelna made a net profit of CZK 199 mil in the third quarter of 2022, down 2.01% yoy. Operating profit has however more than doubled when compared to last year.  This means an annualized return on equity of 9.52%, or 20.1% when equity "adjusted" to 15% of risk-weighted assets:


Solid set of operating results driven by higher interest rates and good cost control. Weak non-interest income generation, higher pressure from asset quality and declining market share is something to watch for in the coming quarters.

Jiří Staník
Jiří Staník
CEO & Founder
He spent nearly two decades analysing companies in the region of Central and Eastern Europe, primarily in the area of financial services. Jiri built and headed Equity Research at Wood & Company, a Central European brokerage firm, and got several awards (such as The Best Equity Research or The Best Analyst by Euromoney).