Česká spořitelna’s unaudited consolidated net profit rose 42.2 percent year-on-year to CZK 20.2 billion last year. According to the bank, the significantly higher operating result reflects business growth and recovery from the COVID-19 pandemic.
Operating profit reached CZK 28.5 billion, up 30 percent year-on-year. Austria’s Erste Group Bank, which owns Česká spořitelna, saw its operating profit rise 16.3 percent to €4 billion last year.
The bank said operating income rose 17.8 percent to CZK 49.9 billion year-on-year, driven by rising net interest income, net fee and commission income, and net profit from trading operations.
Net interest income, the most critical component of operating revenue, increased by 18.1 percent to CZK 36.7 billion compared to 2021. Customer loans and deposits grew, and bond investments supported the development. “Net interest income was also positively impacted by the higher interest rate environment reflected in loans and deposits,” the bank said.
Net fee and commission income grew 3.5 percent year-on-year to ₹9.5 billion, and net profit from trading operations rose 115.9 percent to ₹3.7 billion, which the bank said was due to higher business growth and overall developments following the covid-19 pandemic.
According to the bank, total operating expenses increased 4.6 percent yearly to 21.3 billion kroner, with staff and other administrative fees rising the most.
Česká spořitelna also recalled in a press release that it signed an agreement last year to buy the loan portfolio of Sberbank CZ in liquidation. “The transaction is expected to be finalized during the first half of 2023,” it said.
Česká spořitelna is the largest bank in the Czech Republic by the number of clients, of which it has over 4.5 million. Austrian financial group Erste Group Bank, which owns Česká spořitelna, is a crucial player in the banking market of Central and Eastern Europe.