Česká exportní banka (ČEB), also known as the Czech Export Bank, announced its financial results for 2021, reporting a net profit of 640 million Czech koruna, up from 358 million the previous year. The bank also reported that its new business volume had increased to 5 billion Czech koruna, which is 2.5 times higher than two years ago and five times more than in 2020. The CEO of ČEB, Daniel Krumpolc, attributed the bank’s improved performance to increased business activity, which was previously defensive as the bank tried to clean up its loan portfolio.

Krumpolc believes that the bank has successfully reversed the trend and started the process of transforming ČEB into an active financial institution. In comparison to the pre-pandemic 2019, the bank reduced its employees by 20% and its operating costs by 15%. The bank does not receive any subsidies from the government for its operations.

ČEB mainly focuses on supporting Czech companies in their international expansion and foreign investments. Two-thirds of the loan volume was for investments abroad. The bank was invited to participate in significant transactions with leading Czech and international banks. According to Krumpolc, the bank is not in competition with the commercial banking sector, but rather its main competitors are foreign export banks and agencies that support exports in competitive economies.

The bank’s further growth is expected to be aided by new products related to the recent amendment of the Act on Export Financing and Insurance with State Support. ČEB can now support Czech companies with exports accounting for at least a quarter of their annual revenues, which require investment in strengthening their international competitiveness. The bank can provide financing, bank guarantees, and other products focused on digitization, acquiring new technologies, purchasing raw materials and sub-supplies, or even eco-friendly production and energy-saving measures.

Founded in 1995, ČEB is part of the state’s pro-export policy system. Since then, the bank has supported over 1,860 business cases in over 94 countries, totaling more than 380 billion Czech koruna. The bank’s mission is to support Czech exports and raise global awareness of the Czech Republic.

Overall, the ČEB’s positive financial results demonstrate its commitment to supporting Czech companies in their international expansion and foreign investments, which is vital for the country’s economy. With its new products, the bank can continue to support these companies by providing financing, bank guarantees, and other services to strengthen their competitiveness in the global market.

Article by Prague Forum