CSOB, one of the country’s three largest banks, reported a net profit of CZK7.5bn in H1, down by 20% y/y with the fall being due to the extraordinary incomes last year. The decrease was due to high comparison base related to the one-off gain from a legal case, positive valuation adjustments, sale of bonds and revenues related to the end of CNB’s fx commitment in April 2017, higher operating expenses and total impairments, while meanwhile net interest income and net fee and commission income increased in annual comparison. Thus, the operating income decreased by 7% y/y to CZK17.9bn, while the operating expenses were up by 9% y/y to CZK8.8bn in H1 with the growth of the latter being driven also by the 7% y/y increase in spending on wages and remuneration, the bank said. The bank’s total assets increased by 6% y/y to CZK207bn. Loans were 4% y/y higher at CZK679bn and deposits grew by 14% y/y to CZK969bn. The bank said that the net release of loan loss provisions reflected the continuing excellent loan quality and the non-performing loans ratio further improved to 2.2%.
The net profit of Ceska Sporitelna, another of the three largest banks in the country, increased by 2.6% y/y to CZK7.9bn, while that of Komercni Banka was down by 12.4% y/y to CZK6.9bn. The three banks usually account for more than 60% of the banking sectors’ net profit and for more than 50% of its total assets.