Profits of Komerční Banka and Česká spořitelna increased significantly

Both Česká spořitelna and Komerční Banka reported significant increases in profits for the first three quarters. In the case of Česká spořitelna, the year-on-year increase was 40 percent, and in the case of Komerční Banka, even 51.1 percent.

Česká spořitelna, which belongs to the Austrian Erste Group Bank, earned CZK 15 billion, while Komerční banka reported a profit of CZK 12.9 billion.

Česká spořitelna’s operating profit increased by 35.6 percent to CZK 22 billion and operating income by 21.8 percent to CZK 37.8 billion.

According to the bank, the increase in operating profit is mainly due to business growth and overall development after the COVID-19 pandemic. The most critical component of operating income is net interest income, which increased by 24 percent year-on-year to CZK 27.6 billion. Customer loans and deposits grew, with investments in bonds also supporting the development. “Net interest income was also positively impacted by the higher interest rate environment reflected on the loan and deposit side,” the bank said.

House to take up extraordinary taxation
In the case of Commercial Bank, revenues rose 28.2 percent to CZK 29 billion. Last year’s result was affected by anti-epidemic measures, and interest rates were also significantly lower last year. The total volume of loans issued by the Komerční Banka group increased in the first three quarters of this year, but the importance of new housing loans, for example, fell significantly.

The banks will publish their results on Friday, when the House of Commons will approve the government’s tax package, including introducing a tax on extraordinary profits. The package is expected to hit energy firms and parts of the banking sector. There is no agreement on the exact form yet.

Source

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