Czech Banks in 3Q2014

Banking | Czech Republic | December 10, 2014
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Excel Sheet

Czech banks had another solid quarter in 3Q14, on our calculations. Although details of the sector's profitability are to be announced only next week, the sum of individual banks' performances suggest following:

1) Profit growth of 0-5% yoy in 3Q14

2) Weak balance sheet growth of around 5% (in both, the loans as well as the deposits)

3) Solid asset quality with NPL ratio at 6.2% (and provision coverage at around 50%)

4) Impressive capitalisation with CAR at around 18%

In 3Q14, Sporitelna, CSOB and Komercni Banka generated CZK 10.1 bil, or 74% of total sector's net profit on our calculation. The other highlight are:

    i) UniCredit and GE Money Bank show the biggest profit increase in the first nine months (19% and 29% yoy) due to a fall in cost of provisioning

    ii) AirBank shows the best result ever in 3Q (a profit of CZK 78 mil) twice se good as in 1H2014

    iii) Building savings banks continue to suffer with their profitability falling nearly 16% yoy in 9M2014

More details next week when the aggregated numbers are released