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.

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