Wustenrot Stavebni Sporitelna

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:

• Komercni Banka
• UniCredit Czech Republic
• CSOB
• Ceska Sporitelna
• Home Credit Group
• Expobank Czech Republic
• Raiffeisenbank Czech Republic
• MONETA Money Bank
• PPF Banka
• Sberbank Czech Republic
• Fio banka
• Ceskomoravska Stavebni Sporitelna
• Modra Pyramida Stavebni Sporitelna
• Raiffeisen Stavebni Sporitelna
• Stavebni Sporitelna Ceske Sporitelny
• Wustenrot Stavebni Sporitelna
• Hypotecni Banka
• Wustenrot Hypotecni banka
• J&T Banka
• Air Bank
• Equa Bank
• Banka Creditas
• Moravsky Penezni Ustav
• mBank Czech Republic

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.

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.

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.

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

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 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

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

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

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: 

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 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)