Česká spořitelna, the largest bank in the Czech Republic owned by Erste Group Bank, reported an unaudited consolidated net profit of CZK 20.2 billion in 2022, up by 42.2% YoY. The bank attributed the higher operating result to its business growth and recovery from the COVID-19 pandemic. Its operating profit also increased by 30% YoY, reaching CZK 28.5 billion.

The bank’s operating income rose by 17.8% YoY to CZK 49.9 billion, driven by higher net interest income, net fee and commission income, and net profit from trading operations. Net interest income, which is the most significant component of operating revenue, increased by 18.1% YoY to CZK 36.7 billion, primarily due to growth in customer loans and deposits, and bond investments. The bank also attributed the positive impact of the higher interest rate environment on loans and deposits. Net fee and commission income rose by 3.5% YoY to CZK 9.5 billion, and net profit from trading operations increased by 115.9% YoY to CZK 3.7 billion.

The bank’s total operating expenses increased by 4.6% YoY to CZK 21.3 billion, with the highest rise observed in staff and other administrative fees.

Furthermore, the bank signed an agreement last year to purchase the loan portfolio of Sberbank CZ in liquidation, which is expected to be completed in the first half of 2023.

Erste Group Bank, which owns Česká spořitelna, also reported an increase in its operating profit by 16.3% YoY to €4 billion last year. The bank is a key player in the banking market of Central and Eastern Europe.

Česká spořitelna has over 4.5 million clients and has been able to maintain its position as the largest bank in the Czech Republic. The bank’s successful financial performance in 2022 reflects the positive impact of its strategies and the market conditions.

Article by Prague Forum