Czech banking assets up 7.2% y/y in April 2014, loan growth strengthens to 5.4%

By bne IntelliNews May 30, 2014

The aggregate assets of Czech commercial banks grew by 7.2% on the year to CZK 5.29tn (EUR 193bn) as of end-April 2014, speeding up from a 6.2% rise in the previous month, central bank data showed. The assets accounted for 146% of the full-year GDP forecast, according to IntelliNews calculations.

The annual lending growth, which had been easing for four months in a row, strengthened to 5.4% in April from 4.5% in March reflecting a stronger demand for corporate loans. The value of loans reached CZK 2.53tn as of end-April, up 0.4% on the month. Loans to residents made up 88% of the total and increased by 3.6% y/y in April, speeding up from 2.7% y/y in March.

The annual expansion of lending to households stayed at nearly a two-year high of 4.6% for the second straight month in April with the value of loans totalling CZK 1.19tn, up 0.2% on the month. Loans to companies grew by 1.8% y/y in April to CZK 860.6bn, following a 0.6% rise the month before. Loans to the general government fell 4.6% on the year to CZK 60.2bn, softening from a 7.3% decline in the previous month.

IntelliNews comment: We expect Czech loan growth to slightly accelerate in 2014 supported by the recovering economy which should return to a growth after two years of decline. Improving consumer confidence and rising real wages should support a growth in retail lending and the more favourable economic outlook and the new government’s plans for increased public spending should boost investments and corporate borrowing. According to estimates of the Czech Banking Association (CBA), bank lending growth is forecast to strengthen to 4.7% in 2014 and further gain speed to 5.6% in 2015.

Related Articles

Czech judiciary denounces Poland's move to end separation of powers

Senior Czech judges on July 21 denounced Poland's judicial overhaul as an attack on the rule of law. With big street protests in the Czech Republic's neighbour seemingly gathering momentum – 120 ... more

Strongly profitable Czech petrochemical maker Unipetrol puts cracker explosion behind it

Unipetrol looks to have finally got over the August 2015 fire and explosion that wrecked its steam cracker, an indispensable installation in the production of ethylene feedstock needed to manufacture ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Dismiss