Czech banking sector assets up 1.7% in July, loan growth speeds up to 3.6% y/y.

By bne IntelliNews August 30, 2013

The aggregate assets of Czech commercial banks grew by 1.7% on the year to CZK 4.898tn (EUR 190.4bn) in July 2013, central bank data showed. The annual growth eased from 1.9% in the previous month and was the weakest in more than two years. The banking assets accounted for 139% of the full-year GDP forecast, according to IntelliNews calculations.

After staying flat at 3.5% for two straight months, the annual lending growth slightly accelerated to 3.6% in July mainly due to a rise in loans to households, while credits to companies and the government fell. The value of loans reached CZK 2.424tn as of end-July, flat on the month. Loans to residents made up 89% of total and increased by 1.7% y/y in July after rising by 1.4% the month before.

The annual growth in household credits remained at 3.4% for the third month running in July with the value of extended loans being at CZK 1.145tn. Loans to companies totalled CZK 835.9bn in July, edging down 0.8% on the year, after a 0.1% hike in June. Loans to the general government dropped by 1% y/y in July to CZK 61.2bn, after dropping by 15% in June, their steepest decline in 14 months.

Related Articles

Czech government hikes minimum wage by 11%

The Czech cabinet agreed on Monday to raise the minimum wage by 11% to CZK12,200 (€468) from the start of 2018. The new level represents 40.5% of the average wage. The ruling Social Democrats ... more

Czech president pledges to appoint general election winner as PM

A spokesman for Milos Zeman stressed on August 12 that the Czech president will appoint the winner of the October parliamentary elections as prime minister. The comment comes in the wake of news ... more

Central Europe’s factories remain busy despite a summer lull in PMIs

Manufacturers in Central Europe reported a step back in activity and confidence in July, purchasing managers’ indices (PMI) released by IHS Markit on August 1 showed. While, the indicators still ... more

Dismiss