Extremely high earnings in the Czech banking sector

Published: 28.02.2020 Related countries:  New Zealand New Zealand, Australia Australia

Total profit of the 4 biggest banks operating on the Czech market has risen by 7.1 billion CZK to the combined profits of 62.2 billion CZK in 2019.

Czech banking sector seems to be going through a very successful period. All four of the leading banks, namely ČSOB, UniCredit Bank, Česká spořitelna and Komerční banka earned higher net profits in 2019 than in the previous year and even though the demand for mortgages decreased, other types of loans made up for it. Loans are, thus far, the main reason for the booming banking environment in the Czech Republic. The amount of provided mortgages in 2019, on the other hand, lowered by 35 billion CZK compared to previous year as a result of stricter regulation imposed by the Czech National Bank. The mortgage market has showed the worst results from the past 5 years.

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Source: ČTK (Czech Press Agency)