Czech Export Bank (ČEB) reports increased profits and new business volume

Last year, Česká exportní banka (ČEB), or the Czech Export Bank, saw a net profit of 640 million Czech koruna, up from 358 million the previous year. Its new business volume increased to 5 billion Czech koruna, 2.5 times higher than two years ago and five times more than in 2020. The bank’s CEO, Daniel Krumpolc, announced the results on Tuesday. According to Krumpolc, the bank’s improved performance is due to increased business activity, which was previously defensive as it 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. Compared to pre-pandemic 2019, ČEB 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 focused mainly on supporting Czech companies in their international expansion and foreign investments last year. 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. Still, its main competitors are foreign export banks and agencies supporting 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. The bank can now support Czech companies with exports accounting for at least a quarter of their annual revenues and need to invest in strengthening their international competitiveness. ČEB 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.