Published on 24 July 2025 at 07:00 CET
According to IFRS, Consolidated, Unaudited
MANDATORY DISCLOSURE / PUBLIC DISCLOSURE OF MANDATORY INFORMATION
Operating income
6.8bn
+9.1%
Operating expenses
2.9bn
stable
Net profit
3.1bn
+14.4%
Key highlights(in CZK)
Operating income of CZK 6.8 billion (+9.1%) driven by growth in both net interest income (+13.7%) and net fee and commission income (+11.7%)
Operating expenses kept stable at
Funding base
462bn
+4.2%
CZK 2.9 billion (+1.2%) resulting in adjusted
Total assets
503bn
+4.0%
Loan portfolio2
284bn
+4.4%
cost to income ratio 40.9%1
Net profit of CZK 3.1 billion (+14.4%) on track to deliver and potentially outperform market guidance by CZK 300-400 million
Total balance sheet reached CZK 503 billion (+4.0%), supported by expansion of funding base (+4.2%) and loan portfolio growth (+4.4%)
Note: Percentage change represents movement compared to 1H 2024. (1) Reported cost to income ratio at 42.3%; (2) Gross performing portfolio.
Capital adequacy ratio
18.5%
Excess 3.3pp
RWA
density
33.3%
(2.1)pp
MREL
ratio
27.8%
Excess 5.5pp
Key highlights(in CZK)
Capital adequacy ratio at 18.5%, excess of CZK 5.5 billion or 3.3pp above the capital management target1
MREL ratio at 27.8%, comfortably above the management target of 22.4%
Excess capital1
5.5bn
CZK 10.8 per share
Return on Tangible Equity
23.4%
+3.4pp
Liquidity coverage ratio
339%
stable
Return on Tangible Equity at 23.4% (+3.4pp) well above the minimum guidance of 20%
Liquidity position maintained strong with LCR at 339% (0.5pp), supported by continued deposit growth
Note: The percentage and percentage points represent the year-on-year change. (1) Capital management target of 15.25% as at 30 June 2025.
Lending growth
Aiming at overall lending growth of 5.5−6.0%, more than double the GDP growth of the Czech Republic. Focusing on lending to small business and SME to maximise margins and minimise capital deployment, as reflected in a commercial book growth of 8.7% YoY in June. The retail segment grew by 2.3% YoY.
Deposit growth
Seeking to deliver customer deposit base growth of 2.0−2.5%, while further decreasing cost of funding. In June 2025, the average CoF on customer deposits stood at 1.96% and we target a reduction to 1.70-1.75% by December 2025, assuming an additional rate cut of 25bps in 2H 2025.
Net interest margin
Seeking to deliver net interest margin improvement to 2.05−2.15% at year-end through the reduction of cost of funds and the utilisation of free liquidity for loan portfolio growth and mortgage book repricing. NIM improvement supported by a focus on high-margin lending, namely to the small business segment.
Aspiring to achieve year-end target of CZK 75 billion in distributed asset management products, representing a growth of 25−30%. Additionally, taking steps to improve the distribution of life insurance and pension funds through changes in incentive schemes.
3rd party product distribution
Cost management
Maintaining tight cost control, targeting C/I ratio between 41−42%, mainly through productivity improvements, reduction of cash services, deployment of AI in contact centre, closure of the least productive branches and ATMs and reduction of remote work options. Potential upside of CZK 75−125 million against the guidance.
Risk management
Focus on delivering cost of risk charge below the mid-point of the guidance (17.5-22.5bps). Aiming to maintain balance sheet health with NPL ratio in the range of 1.2−1.4%. Additionally, aspiring to dispose of CZK 300−600 million in NPL assets in 2H 2025, subject to market conditions.
Net profit performance
Seeking to deliver a net profit in the range of CZK 6.3−6.4 billion, potentially exceeding the guidance by CZK 300−400 million, delivering earnings growth of 8−10% compared to the 2024 result. If the upside materialises, earnings per share would constitute CZK 12.3−12.5 against the guidance of CZK 11.7.
Current earnings are accrued at a 90% level into the dividend account, which represents a dividend of CZK 10.6 per share if a minimum net profit of CZK 6.0 billion is delivered. If the guidance upside of CZK 300−400 million materialises, the dividend would amount to CZK 11.1 - 11.3 per share.
Distributions to shareholders