The banking sector in the Czech Republic demonstrated remarkable resilience in 2024, with the six largest domestic banks reporting a combined net profit of 86.1 billion Czech crowns – a substantial 22% year-on-year increase. This impressive growth follows a period of fluctuation, as profits had declined in 2022 to 76.2 billion crowns before rebounding from 2023’s figure of 70.6 billion crowns.
According to Petr Bartoň, an analyst at Natland, “The increase in bank profits corresponds to the heightened economic activity experienced by the Czech economy last year. The entire economy began to grow again after a long period of stagnation. Interest rates fell throughout the year, revitalizing bank financing. Both individuals and companies conducted more transactions with banks, which contributed to the increased profits.”
Tomáš Cverna, an analyst at XTB, noted that a common denominator in the banks’ success was the growth in fees, confirming a shift of money from interest-bearing deposits to investment instruments. “The six largest banks operating in the country performed very well last year,” he commented.
The windfall tax continues to impact the banking sector, with banks required to pay a tax on unexpected extraordinary profits from last year. This tax, approved by the government as a 60% tax surcharge on excess profits, will be filed this year. However, analysts estimate that banks paid only 470 million crowns in windfall tax advances last year, with a similar or lower amount expected this year – an insignificant sum in the context of the sector’s profitability.
Individual bank performances were particularly striking: Česká spořitelna led the way with a record profit increase of 40.5% to 26.2 billion crowns, followed by ČSOB with a 25% increase to 18.9 billion crowns. Komerční banka saw a 10.4% rise to 17.2 billion crowns, while Raiffeisenbank in the Czech Republic recorded a 31.9% increase to 7.25 billion crowns. Moneta Money Bank’s net profit grew by 11.7% to 5.8 billion crowns, and Czech and Slovak UniCredit Bank reported a 2.2% increase to 10.7 billion crowns.