Czech banking sector assets up 1.9% in June 2013, loan growth steady at 3.5% y/y.

By bne IntelliNews July 31, 2013

The aggregate assets of Czech commercial banks grew by 1.9% on the year to CZK 4.885tn (EUR 189.6bn) in June 2013, central bank data showed. The annual growth eased from 2.5% in the previous month and was the weakest in two years. The banking assets accounted for 139% of the full-year GDP forecast, according to IntelliNews calculations.

The annual lending growth stayed steady at 3.5% for the second straight month in June as a growth in corporate loans was offset by a deeper decline in credits to the general government. The value of loans reached CZK 2.425tn as of end-June, or by 0.5% higher than at end-May 2013. Loans to residents made up 89% of total and increased by 1.4% y/y in June after rising by 1.3% the month before.

The annual growth in household credits remained at 3.4% for the second month running in June with the value of extended loans being CZK 1.145tn. Loans to companies totalled CZK 841.1bn in June, edging up 0.1% on the year, after falling by 0.7% in May. Loans to the general government dropped by 15% y/y, their steepest decline in 14 months, to CZK 58.4bn.

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