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Wustenrot Stavebni Sporitelna

Banking > Czech Republic > Wustenrot Stavebni Sporitelna
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Wustenrot Stavebni Sporitelna

Wüstenrot Stavební Spořitelna is the Czech Republic's smallest building savings bank. In 2012, the bank held a 10.5% share of building savings loans and 8.7% of deposits. Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on the Czech market) and its conservative approach (the bank has the best loan quality and provision coverage), the bank is traditionally the

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Wüstenrot Stavební Spořitelna is the Czech Republic's smallest building savings bank. In 2012, the bank held a 10.5% share of building savings loans and 8.7% of deposits. Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on the Czech market) and its conservative approach (the bank has the best loan quality and provision coverage), the bank is traditionally the least profitable building savings bank on the market. In 2012, the bank achieved ROE of “only” 9.7%, compared to the 15.2% of the 5-building savings banks average. Size matters and the lack of economies of scale is reflected in Wüstenrot’s low cost efficiency. In 2012, the bank’s operating costs accounted for 1.27% of average assets, nearly twice as much as the other savings banks.

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

income statement

                      746 737 604 511 599    
                      875 1,140 873 668 730    
                      374 611 377 191 198    
                      245 251 267 90.0 93.0    

balance sheet

                      2,066 118 1,604 2,769 1,922    
                      32,846 30,235 25,850 23,735 22,467    
                      3,496 7,810 7,456 10,756 10,101    
                      40,569 42,715 43,016 41,413 36,904    
                      2,411 2,667 2,956 3,113 3,245    
                      9.80 9.53 11.0 11.0 0.000    
                      36,936 38,393 39,602 37,834 33,333    
                      105 105 106 106 0.000    

ratios

                      10.7% 9.87% 9.50% 2.97% 2.93%    
                      0.612% 0.602% 0.623% 0.213% 0.237%    
                      1.25% 1.27% 1.16% 1.13% 1.36%    
                      57.2% 46.4% 56.8% 71.4% 72.9%    
... ... ... ...               9.81% 11.9% 14.4% 15.7% 18.1%    
                      1.86% 1.77% 1.41% 1.21% 1.53%    
                      85.3% 64.7% 69.2% 76.5% 82.1%    
                      18.0% 17.3% 29.1% 21.0% 15.5%    
                      36.5% 33.9% 38.3% 36.1% 34.4%    
                      5.94% 6.24% 6.87% 7.52% 8.79%    
                      88.9% 78.8% 65.3% 62.7% 67.4%    
                      81.0% 70.8% 60.1% 57.3% 60.9%    
                      1.82% 2.04% 2.61% 3.16% 3.29%    
                      61.0% 67.8% 69.2% 70.2% 76.7%    

Download Data
income statement Unit
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
                      1,834 1,805 1,612 1,474 1,389    
                      1,087 1,067 1,008 963 790    
                      746 737 604 511 599    
                      158 198 254 140 113    
                      -29.0 205 15.0 17.0 18.0    
                      875 1,140 873 668 730    
                      183 179 190 172 183    
                      50.7 55.4 55.0 54.0 89.0    
                      267 294 251 251 260    
                      501 529 496 477 532    
                      374 611 377 191 198    
                      59.9 1.94 47.0 77.0 81.0    
                      0.261 242 0.000 0.000 0.000    
                      314 367 330 114 117    
                      69.2 117 63.0 24.0 24.0    
                      0.000 0.000 0.000 0.000 0.000    
                      245 251 267 90.0 93.0    
... ... ... ... ... ... ... ... ... ... ... 0.000 0.000 0.000 0.000 0.000   ...

growth rates

...                     4.65% -1.20% -18.1% -15.4% 17.2%    
...                     7.37% 25.3% 28.5% -44.9% -19.3%    
...                     5.01% 30.2% -23.4% -23.5% 9.28%    
...                     16.6% 5.59% -6.19% -3.83% 11.5%    
...                     -7.33% 63.2% -38.3% -49.3% 3.66%    
...                     -7.97% 16.9% -10.2% -65.5% 2.63%    
...                     -8.87% 2.28% 6.56% -66.3% 3.33%    

market share

                      0.540% 0.682% 0.519% 0.398% 0.419%    
                      0.459% 0.390% 0.437% 0.143% 0.140%    
                      0.751% 0.837% 0.820% 0.788% 0.586%    
                      0.049% 0.048% 0.047% 0.047% 0.046%    

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

balance sheet

                      451 2,814 3,233 3,328 1,753    
                      2,066 118 1,604 2,769 1,922    
                      32,846 30,235 25,850 23,735 22,467    
                      32,846 30,235 25,850 20,694 19,849    
                      32,846 30,235 25,850 20,694 19,849    
                      0.000 0.000 0.000 ... ... ... ...
                      0.000 0.000 0.000 2,992 2,566    
                      3,496 7,810 7,456 10,756 10,101    
                      357 120 238 245 208    
                      40,569 42,715 43,016 41,413 36,904    
                      2,411 2,667 2,956 3,113 3,245    
                      0.000 0.000 0.000 0.000 0.000    
                      38,158 40,048 40,060 38,300 33,659    
                      9.80 9.53 11.0 11.0 0.000    
                      36,936 38,393 39,602 37,834 33,333    
... ... ... ...               36,936 38,393 39,602 36,495 32,100    
... ... ... ...               0.000 0.000 0.000 773 653    
                      105 105 106 106 0.000    
                      1,107 1,540 341 349 326    

asset quality

                      603 626 686 768 759    
                      33,214 30,659 26,325 24,274 23,049    
                      368 424 475 539 582    

growth rates

...                     2.71% -7.95% -14.5% -8.18% -5.34%    
...                     2.71% -7.95% -14.5% -19.9% -4.08%    
...                     2.71% -7.95% -14.5% -19.9% -4.08%    
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... -14.2%    
...                     2.74% 5.29% 0.705% -3.73% -10.9%    
...                     11.3% 10.6% 10.8% 5.31% 4.24%    
...                     2.73% 3.94% 3.15% -4.46% -11.9%    
... ... ... ... ...             2.73% 3.94% 3.15% -7.85% -12.0%    
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... -15.5%    

market share

                      1.50% 1.34% 1.04% 0.911% 0.807%    
                      0.000% 0.000% 0.000% 0.342% 0.279%    
                      0.000% 0.000% 0.000% ... ... ... ...
                      3.00% 2.67% 2.19% 1.68% 1.50%    
                      4.25% 3.73% 3.03% 2.30% 2.04%    
                      0.906% 0.922% 0.836% 0.780% 0.665%    
                      1.37% 1.36% 1.30% 1.10% 0.947%    
... ... ... ...               2.16% 2.17% 2.19% 1.90% 1.58%    
... ... ... ...               0.000% 0.000% 0.000% 0.092% 0.071%    

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

ratios

                      10.7% 9.87% 9.50% 2.97% 2.93%    
                      0.612% 0.602% 0.623% 0.213% 0.237%    
                      1.25% 1.27% 1.16% 1.13% 1.36%    
                      57.2% 46.4% 56.8% 71.4% 72.9%    
... ... ... ...               9.81% 11.9% 14.4% 15.7% 18.1%    
... ... ... ... ... ... ... ... ... ... ... ... ... ... 15.7% 18.1%    
                      1.86% 1.77% 1.41% 1.21% 1.53%    
...                     1.70% 1.60% 1.24% 1.03% 1.35%    
                      4.58% 4.33% 3.76% 3.49% 3.55%    
...                     2.88% 2.73% 2.52% 2.46% 2.20%    
... ... ... ... ... ... ... ... ... ... ... 0.000% 0.000% 0.000% 0.000% 0.000%   ...
                      85.3% 64.7% 69.2% 76.5% 82.1%    
                      18.0% 17.3% 29.1% 21.0% 15.5%    
                      -3.31% 18.0% 1.72% 2.54% 2.47%    
                      2,907 2,273 2,482 2,109 2,649    
                      51,415 44,453 48,569 45,073 63,225    
                      36.5% 33.9% 38.3% 36.1% 34.4%    
                      5.94% 6.24% 6.87% 7.52% 8.79%    
                      88.9% 78.8% 65.3% 62.7% 67.4%    
                      81.0% 70.8% 60.1% 57.3% 60.9%    
                      1.82% 2.04% 2.61% 3.16% 3.29%    
                      61.0% 67.8% 69.2% 70.2% 76.7%    
                      1.12% 1.40% 1.84% 2.27% 2.59%    
                      0.185% 0.006% 0.168% 0.311% 0.351%    

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

other data

                      1.00 1.00 1.00 1.00 1.00    
                      296 336 326 318 241    
                      74.2 71.7 63.7 57.7 55.1    
... ...                   5.76 ... ... ... ... ... ...
                      455 467 459 438 405    
... ...                   69.2 62.1 56.2 56.9 31.9    
                      529 538 523 495 437    
                      0.442 0.422 0.406 0.411 0.408    
                      0.081 0.082 0.086 0.086 0.082    

Download Data
Comparison of 24 Banks in Czech Republic

This Annual Statistical Dossier offers a comparison of 24 Czech banks from 1990 to 2017 on an annual basis. The report can be downloaded as an Excel file.

You will find here the key numbers from the banks' balance sheets such as loan and deposit breakdown, or capitalization, income statements for the sector and the main ratios related to the banking

Read more »

This Annual Statistical Dossier offers a comparison of 24 Czech banks from 1990 to 2017 on an annual basis. The report can be downloaded as an Excel file.

You will find here the key numbers from the banks' balance sheets such as loan and deposit breakdown, or capitalization, income statements for the sector and the main ratios related to the banking business such as asset quality, number and cost of employees or details on banking infrastructure.

The file contains data of following banks:

If you are only interested in particular areas of a bank's business, you can find and download specific indicators from the bank's Corporate Profile, or specific charts from the bank's Chart Section, where you can find a comparison of the bank with its peers.

Alternatively, you can find similar data for the Czech banking sector in the banking Sector Profile.

If you are interested in the banking quarterly figures, please refer to the banking Quarterly Statistical Dossier. Download a sample excel file attached to see more details. On purchase, the hidden cells will be unlocked and all available data wll be visible.

Wustenrot Stavebni Sporitelna in Numbers

This Annual statistical dossier offers a summary of Wustenrot Stavebni Sporitelna's performance between 2000 and 2017 on an annual basis. The report can be downloaded as an excel file.

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

Read more »

This Annual statistical dossier offers a summary of Wustenrot Stavebni Sporitelna's performance between 2000 and 2017 on an annual basis. The report can be downloaded as an excel file.

You will find here the key numbers from the bank's balance sheet and 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 business 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 WSS's market position in mortgage or consumer lending.

If you are only interested in particular areas of the bank's business, you can find and download specific indicators from the bank's corporate profile, or specific charts from the bank's charts section, where you can find a comparison of the bank with its peers.

If you are interested in the bank’s quarterly figures, please refer to the bank’s quarterly statistical dossier.

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.

Wüstenrot hypoteční banka - 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:

Wüstenrot hypoteční's profit doubles...

Wüstenrot hypoteční banka

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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:

Wüstenrot hypoteční's profit doubles...

Wüstenrot hypoteční banka reported a net profit of CZK 54.8 mil. in 3Q2014, nearly twice as much as in the same period last year.

...thanks to a fall in cost of funding

The whole profit improvement in the third quarter (and in the whole year actually) comes from the fall in the bank's cost of funding. The average cost of liabilities (deposits account for 69% of that) fell 20%, or 53 bp in the last 12 months to 2.13%.

Given the fact that average asset yield remained stable at 3.75%, the bank's net interest margin improved dramatically from 1.26% to 1.75% in the last year.

In other words, the cheaper funding brought a CZK 51 mil. improvement in the net interest income compared to a CZK 33 mil. increase in the bank's pre-tax profit in 3Q2014.

Re-pricing of the bank's assets and liabilities corresponds with the fact that Wüstenrot stopped gaining market share. It also put the bank nearly on a par with the market leader Hypoteční banka.

When comparing these two mortgage only banks on the market, two differences stand out:

•           Cost efficiency

•           Capital strength

Cost efficiency

Wüstenrot hypoteční banka seems to be a pretty cost efficient bank as costs account for less than 39% of income. The picture deteriorates somewhat when compared to Hypoteční banka's 17.6%.

The picture darkens even more on finding out that Wüstenrot pays its staff 2.2x more than Hypoteční banka on average.

Although the two banks cannot be compared so bluntly (Hypoteční has nearly 500 employees compared to Wüstenrot's fewer than 40, so management pay might distort the numbers heavily), it is clearly the cost side to watch at Wüstenrot.

Capital strength

Wüstenrot hypoteční banka's capital adequacy of 12.9% at the end of September 2014 is a respectable number, by all means. It's clearly a high enough figure for a bank with a ROE of nearly 14% while the market grows at 7% only.

However, the sector average accounts for 18% while Hypoteční banka's capital adequacy amounts to 34% (which is rather ridiculous).

The question is how well prepared is Wüstenrot hypoteční banka to gain market share in the future, or how to keep up with the market if demand rises fast?

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

Wüstenrot Stavební 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:

Wüstenrot Spořitelna's net profit falls 15.5%...

Wüstenrot Stavební Spořitelna

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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:

Wüstenrot Spořitelna's net profit falls 15.5%...

Wüstenrot Stavební Spořitelna reported a net profit of CZK 33.2 mil. in 3Q2014, down 15.5% yoy compared to the same period last year. The deterioration was driven purely by a 47% yoy fall in net fee income generation. On the other hand, interest income continued to rise and operating costs and provisions fell.

As seen on the chart above, the big picture remains negative. Wüstenrot's ROE dropped below 5% so the bank remains the least profitable within the sector.

Falling loans and deposits (in absolute as well as in relative terms) do not allow the bank to create economies of scale, so cost efficiency is low. Finally, declining margins make the bank's life even more difficult.

...as fee income drops 47% yoy

The 47% drop in net fees is the most significant feature of the quarter. Although the bank's revenue might be volatile, fee income has been declining since September 2013. Unless 4Q results bring a change in the trend, one should be worried here.

Too small and losing...

Wüstenrot Stavební Spořitelna is the smallest building savings bank with a 9.6% market share in building savings loans and 8.8% in deposits.

This is a problem as its relatively small size does not allow the bank to benefit from economies of scale such as in the case of ČMSS, the largest building savings bank with a market share of over 40%. While ČMSS operates with cost to income at below 40%, Wüstenrot could not get below 60% in 2014.

The fact that Wüstenrot's market share continues to decline is therefore further bad news for the bank.

While market share in lending has been declining since the middle of 2012, the bank lost 49 bp on the deposit side just within the last two quarters.

...but fightiing

Despite the deteriorating profitability, declining volumes and market share losses, there are some positives worth highlighting:

•    Net interest margin continues to recover. It's 20 bp better than last year

•    The management shows good effort on the cost side.

•    The bank's asset quality remains the best within the sector

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

Wüstenrot Stavební Spořitelna at a Glance

Wüstenrot Stavební Spořitelna is the Czech Republic's smallest building savings bank. In 2012, the bank held a 10.5% share of building savings loans and 8.7% of deposits. Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on the Czech market) and its conservative approach (the bank has

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Wüstenrot Stavební Spořitelna is the Czech Republic's smallest building savings bank. In 2012, the bank held a 10.5% share of building savings loans and 8.7% of deposits. Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on the Czech market) and its conservative approach (the bank has the best loan quality and provision coverage), the bank is traditionally the least profitable building savings bank on the market. In 2012, the bank achieved ROE of “only” 9.7%, compared to the 15.2% of the 5-building savings banks average. Size matters and the lack of economies of scale is reflected in Wüstenrot’s low cost efficiency. In 2012, the bank’s operating costs accounted for 1.27% of average assets, nearly twice as much as the other savings banks.

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

Wüstenrot Stavebni Sporitelna in Numbers

Similarly to Wüstenrot Hypoteční banka in mortgage lending, Wüstenrot Stavební Spořitelna is a relatively little bank, with a 10.5% share of lending and 8.7% of building savings deposits as of the end of 2012.

Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on

Read more »

Similarly to Wüstenrot Hypoteční banka in mortgage lending, Wüstenrot Stavební Spořitelna is a relatively little bank, with a 10.5% share of lending and 8.7% of building savings deposits as of the end of 2012.

Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on the Czech market) and its conservative approach (the bank has the best loan quality and provision coverage), the bank is traditionally  the least profitable building savings bank on the market. In 2012, the bank achieved ROE of “only” 9.7%, compared to the 15.2% of the 5-building savings banks average. Size matters and the lack of economies of scale is reflected in Wüstenrot’s low cost efficiency. In 2012, the bank’s operating costs accounted for 1.27% of average assets, nearly twice as much as the other savings banks. 

This excel file offers a summary of the company's performance in between 1Q2003-1Q2013, 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 as well as the segment of building societies

Wüstenrot Stavebni Sporitelna at a Glance

Similarly to Wüstenrot Hypoteční banka in mortgage lending, Wüstenrot Stavební Spořitelna is a relatively little bank, with a 10.5% share of lending and 8.7% of building savings deposits as of the end of 2012.

Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on

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Similarly to Wüstenrot Hypoteční banka in mortgage lending, Wüstenrot Stavební Spořitelna is a relatively little bank, with a 10.5% share of lending and 8.7% of building savings deposits as of the end of 2012.

Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on the Czech market) and its conservative approach (the bank has the best loan quality and provision coverage), the bank is traditionally  the least profitable building savings bank on the market. In 2012, the bank achieved ROE of “only” 9.7%, compared to the 15.2% of the 5-building savings banks average. Size matters and the lack of economies of scale is reflected in Wüstenrot’s low cost efficiency. In 2012, the bank’s operating costs accounted for 1.27% of average assets, nearly twice as much as the other savings banks. 

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 wi the overall banking sector as well as with other building savings banks

Wüstenrot CR - 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 Wüstenrot Stavební Spořitelna in 4Q2012. The main conclusions are: 

Market position

Similarly to Wüstenrot Hypoteční banka in mortgage lending, Wüstenrot Stavební Spořitelna is a relatively little bank, with a 10.5% share of lending and 8.7% of building savings deposits as of the end of 2012.

Although  the bank has been consistently building up its market position (and has gained 1-2% of the market in the last 6 years), it was the biggest loser on the loan market in 2012 (with market share falling by more than 50 bp), while the bank gained over 30 bp in deposits.

In 4Q, the bank lost 29 bp  in terms of its loan market share, but gained 8 bp in  its deposits market shareThe bank’s overall balance sheet momentum is mixed. One one hand, loan growth is being hammered by negative market development and Wüstenrot’s weakening market position (loan book  down 3.4% qoq and 7.9% yoy in 4Q). On the other hand, deposits increased  by a solid 2.5% qoq and 3.9% yoy in 4Q for exactly the opposite reasons.

Profitability

Partly because of its small size (and limited economies of scale and synergies with a would-be commercial bank on the Czech market) and its conservative approach (the bank has the best loan quality and provision coverage), the bank is traditionally  the least profitable building savings bank on the market. In 2012, the bank achieved ROE of “only” 9.7%, compared to the 15.2% of the 5-building savings banks average.

When adjusted for surplus of capital (when ROE is adjusted to the building savings market average for each bank), Wüstenrot is clearly the least profitable building savings bank on the market:

As shown in the report, the negative momentum in loan growth is taking its toll on the profitability of the sector. As it is the smallest building savings bank on the market (with relatively the highest cost base), no wonder Wüstenrot’s profitability is being doubly hit.

Asset quality

With non-performing loans at only 2.04% of the total and provision coverage of nearly 68% of non-performing loans, Wüstenrot Stavební Spořitelna is now the building savings bank with the best loan quality.

Thanks partly to the above, no wonder the need to create more provisions is low. In 2012, the bank created less than CZK 2 mil of new provisions, or 0.1% of average loans, by far the smallest amount in the sector.

Cost-efficiency

Size matters and the lack of economies of scale is reflected in Wüstenrot’s low cost efficiency. In 2012, the bank’s operating costs accounted for 1.27% of average assets, nearly twice as much as the other savings banks.

Cost savings and loan book development are the two main things to watch for at Wüstenrot in the coming quarters, in our view.

 

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

Wüstenrot - Analysis of Mortgage Lending in 4Q12

This report analyses the housing lending in the Czech Republic for the 4Q2012. 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 4Q2012. 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 focuses specifically on development in Wuestenrot Hypotecni Banka in the 4Q2012. The key highlights are:

  • Mortgage loan growth slowed down to 6.3% yoy, while sales of new mortgages dropped to last year’s level in 4Q12.
  • The top 3 banks further cemented their market position to over 65% in 2012. They sold more than 70% of the new mortgages in 4Q12.
  • ČSOB is the clear winner for the year 2012, while GE Money Bank and Raiffeisenbank lost the most.

Mortgage loans represented nearly 30% of all bank loans in 4Q12. The mortgage business generates around 15% of banks’ profits.

Wüstenrot continues to build its market share...

Wüstenrot’s mortgage loans increased by an impressive 4.7% qoq and over 10% yoy for the full year. On the other hand, Wüstenrot’s building society lending has dropped nearly 8% yoy, the most among the five building societies: 

... but from a very low starting-point

Although Wüstenrot has been growing more than twice as fast as the overall market over the last five years, its late arrival in the mortgage business a decade ago means the bank still occupies only 2.5% of the market. While not bad as such (the bank held only 1.5% of the market in 2009), it remains well below the share the bank holds in the building society business (10.5%) and represents only a tenth of the figure for the other only pure mortgage player on the market – Hypoteční Banka.

The slowdown of the overall market growth (from 20-30% a year to 6% now) also makes it more difficult for Wüstenrot to catch up with the bigger players.

In 4Q, the bank sold 3.4% of the new production and held 4% of the net increase in the mortgage loan stock. This is a respectable achievement, though somewhat lower than in the previous quarters.  In 2011, the bank was selling 5-6% of the new loans, for example:

Lack of scale hurts profitability

The relatively small market share and a lack of scale as a result make the biggest (though not the only one, obviously) difference when compared to Hypoteční Banka, in our view.

While interest margin and asset quality numbers seem comparable between the two banks, the cost side makes the biggest difference in our view:

  • Wüstenrot operates with a cost-to-income ratio of around 45-55%, compared to the less than 16% of Hypoteční Banka
  • Costs represent 0.4% of average assets at Hypoteční Banka, compared to 0.9% at Wüstenrot and 1.6% of the market, on average

As a result, Wüstenrot achieves ROE in single-digit territory, while Hypoteční banka has been enjoying profitability implying ROE of over 30% (when adjusted for its hefty overcapitalisation)

Based on a comparison of 15 banks in the Czech Republic in 2017, PPF Banka was paying its employees the best, followed by J&T Banka and Expobank Czech Republic.

PPF Banka employed 227 persons in 2017, up 8.10% when compared to the

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Based on a comparison of 15 banks in the Czech Republic in 2017, PPF Banka was paying its employees the best, followed by J&T Banka and Expobank Czech Republic.

PPF Banka employed 227 persons in 2017, up 8.10% when compared to the previous year. Historically, the bank's workforce hit an all time high of 227 persons in 2017 and an all time low of 64.0 in 2002.

Average cost reached 5,517 per employee, 3.74% less than a year ago. This figure was 5,459 some 10 years ago.

Staff accounted for 40.0% of total operating expenditures in 2017.

Comparing PPF Banka with its closest peers, J&T Banka had 730 employees with average cost of 5,294 per person, Expobank Czech Republic operated with 215 people (and 4,245 per employee) and Raiffeisenbank Czech Republic had 2,934 employees in 2017 with cost of 3,753 per head.

You can see all the banks cost per employee data on the Cost Per Employee indicator page or you can download a report on the Czech banks in the report section.

Based on a comparison of 15 banks in the Czech Republic in 2016, PPF Banka was paying its employees the best, followed by J&T Banka and Stavebni Sporitelna Ceske Sporitelny.

PPF Banka employed 210 persons in 2016, up 7.14% when compared

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Based on a comparison of 15 banks in the Czech Republic in 2016, PPF Banka was paying its employees the best, followed by J&T Banka and Stavebni Sporitelna Ceske Sporitelny.

PPF Banka employed 210 persons in 2016, up 7.14% when compared to the previous year. Historically, the bank's workforce hit an all time high of 210 persons in 2016 and an all time low of 64.0 in 2002.

Average cost reached 5,732 per employee, 9.44% more than a year ago. This figure was 5,835 some 10 years ago.

Staff accounted for 36.9% of total operating expenditures in 2016.

Comparing PPF Banka with its closest peers, J&T Banka had 717 employees with average cost of 4,499 per person, Stavebni Sporitelna Ceske Sporitelny operated with 175 people (and 4,111 per employee) and Moravsky Penezni Ustav had 104 employees in 2016 with cost of 3,960 per head.

You can see all the banks cost per employee data on the Cost Per Employee indicator page or you can download a report on the Czech banks in the report section.

Based on a comparison of 15 banks in the Czech Republic in 2017, Ceska Sporitelna generated the largest fee income, followed by Komercni Banka and CSOB.

Ceska Sporitelna reported total fee income of CZK 377 mil, down 1.12% compared

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Based on a comparison of 15 banks in the Czech Republic in 2017, Ceska Sporitelna generated the largest fee income, followed by Komercni Banka and CSOB.

Ceska Sporitelna reported total fee income of CZK 377 mil, down 1.12% compared to the previous year. Historically, the bank’s fee income reached an all time high of CZK 700 mil in 2011 and an all time low of CZK 133 mil in 2000.

Comparing Ceska Sporitelna with its closest peers, Komercni Banka generated total fee income of CZK 277 mil, CSOB operated with CZK 274 mil fee income and UniCredit Czech Republic produced total fees worth CZK 148 mil.

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

Based on a comparison of 21 banks in the Czech Republic in 3Q2016, Moravsky Penezni Ustav had the highest share of bad loans, followed by PPF Banka and Banka Creditas.

Moravsky Penezni Ustav's non-performing loans reached 29.1% of total

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Based on a comparison of 21 banks in the Czech Republic in 3Q2016, Moravsky Penezni Ustav had the highest share of bad loans, followed by PPF Banka and Banka Creditas.

Moravsky Penezni Ustav's non-performing loans reached 29.1% of total loans at the end of 3Q2016, down from 29.6% when compared to the previous quarter and down from 29.6% when compared to the same period of last year. Historically, the NPL ratio hit an all time high of 40.2% in 1Q2015 and an all time low of 0.204% in 3Q2007.

Provision coverage amounted to 16.1% at the end of 3Q2016, up from 16.1% compared to a year earlier.

When compared to the nearest peers, PPF Banka operated at the end of 3Q2016 with NPL ratio of 16.1% and provision coverage of 23.7%, Banka Creditas with 13.9% and 25.5% and Expobank Czech Republic had 8.70% of bad loans covered with 44.3% by provisions at the end of 3Q2016.

Non-performing loans of the whole Czechia’s banking sector amounted to 4.81% of total loans in 3Q2016, down from 5.63% when compared to the last year.

You can see all the banks non-performing loans data at NPLs (As % Of Loans) indicator page or you can download a report on the Czech banks in the report section.

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WSS's costs (as % of assets) rose 18.3% to 1.73% in 4Q2017
WSS's net profit fell 37.7% to CZK 36.1 mil in 4Q2017
WSS's net profit fell 37.7% to CZK 36.1 mil in 4Q2017
WSS's net interest margin fell 4.54% to 1.72% in 4Q2017
WSS's capital adequacy ratio rose 0.149% to 18.4% in 4Q2017
WSS's net interest income fell 3.23% to CZK 157 mil in 4Q2017
WSS's npls (as % of loans) rose 9.41% to 3.99% in 2017
WSS's total revenues rose 4.88% to CZK 1,005 mil in 2017
WSS's mortgage loans fell 4.95% to CZK 18,249 mil in 2017
WSS's corporate loans fell 14.7% to CZK 1,814 mil in 2017