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J&T Banka - Takeaways from 3Q2022 Results

Jiří Staník
November 28, 2022

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%

Revenues & Costs

Revenues increased 141% yoy to CZK 3,666 mil in the third quarter of 2022 driven by interest and trading income. Net interest income more than doubled with net interest margin increasing 1.27 pp to 3.16% of total assets while CZK 1.39 bil trading profit was booked in the third quarter. When compared to three years ago, revenues were up 175%:

Average asset yield was 5.12% in the third quarter of 2022 (up from 2.62% a year ago) while cost of funding amounted to 2.21% in 3Q2022 (up from 0.827%).

Costs increased by only 10.5% yoy and the bank operated with impressive cost to income of 19.2% in the last quarter. Staff cost rose 8.75% as the bank employed 664 persons (up 11.9% yoy) and paid CZK 183,159 per person per month including social and health care insurance cost:

Loans, Deposits and Capitalization

Without providing any details, we estimate J&T Banka's customer decreased 2.11% yoy in the third quarter of 2022 while customer deposit growth amounted 12.9% yoy. That’s compared to average of 4.09% and 8.97% average annual growth seen in the last three years.

At the end of third quarter of 2022, J&T Banka's loans accounted for 33.9% of total deposits and 25.5% of total assets.

We assume retail loans grew 1.0-2.0% qoq and were approximately 35% up yoy. They accounted for around 4.5% of the loan book at the end of the third quarter of 2022 while corporate loans might have decreased  approximately 3.0% yoy accounting for 97.4% of total loans:

We estimate that J&T Banka has lost 0.151 pp market share in the last twelve months in terms of loans (holding 1.52% of the market at the end of 3Q2022). On the funding side, the bank seems to have gained 0.127 pp and held 2.83% of the deposit market:

Cost of risk reached 0.537% of average loans and provisions have "eaten" some 2.80% of operating profit in the third quarter of 2022. We estimate J&T Banka's non-performing loans reached 8.0-9.0% of total loans, up from 7.89% when compared to the previous year. We believe provisions covered half of NPLs at the end of the third quarter of 2022, down from 56.7% for the previous year:

We estimate that J&T Banka's capital adequacy ratio reached approximately 21% in the third quarter of 2022, up from 17.7% for the previous year while bank equity accounted for 48.2% of loans:


Overall, J&T Banka made a record net profit of CZK 2,277 mil in the third quarter of 2022, up 436% yoy. This means an annualized return on equity of 32.2%, or 19.1% when equity "adjusted" to 15% of risk-weighted assets:


Record set of results presented by the Bank in the third quarter of 2022. Impressive revenue growth was driven by higher interest rates and strong trading income and was fully translated into record operating profitability amid very good cost control. Details on the loan breakdown and the asset quality will be interesting to watch next quarter.

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).