Economic Results of Monetary Institutions

In January to September banking monetary institutions (CZ-NACE 65.12 – banks without CNB, building societies) realized the total revenues amounting to CZK 122,3 billion, including financial revenues amounting to CZK 103,6 billion. The total costs stood at CZK 97,6 billion, including the total financial costs amounting to CZK 36,3 billion.

Unlike the difference between total revenues and total expenses, the financial performance of the monetary banking institutions is higher by the profits made from certain financial transactions (e.g. foreign currency, derivates and securities transactions). Since 2002, the financial performance of these institutions has been measured in terms of their results – i.e. as profits or losses from these financial transactions – and not in terms of revenues and expenses.

In the first three quarters of 2004 the difference between the total revenues and total cost was CZK 24,6 billion and the net profit from financial operations was CZK 7,1 billions. The banking monetary institutions made pre-tax net income amounting to CZK 31,7 billion, which translates into a increase of 10,4 % compared to the corresponding period of the previous year. Monetary institutions have been particularly earning on interests from mortgage and consumer credits and on given loans to small and middle enterprises.

In the period of the 1st and 3rd quarter of 2004 all 35 banks and building societies employed 37 400 actual persons on average, by 3,3 % less than in the same period of 2003. In terms of f/t equivalent, the average number of employed persons fell by 3,4 %, 36 939 persons. The average monthly wage related to f/t persons has continued in growing trend (increase by 7,2 %) and stood at CZK 37 873.

Interests receivable reached CZK 76,2 billion and interests payable reached the amount of CZK 31,7 billion in the first three quarters of 2004. Interests receivable increased by 1,1 % year-on-year. Interests payable fell by 10,0 % year-on-year. This growth of interests receivable is caused by big call for mortgages and consumer credits. The interest margin grew from CZK 40,1 to 44,5 billion.

In comparison with 1st to 3rd period of 2003 there was a growth of number of concluded contracts for savings for building purposes and purchases of a house. The growth was 613 601 contracts (total 6 563 975) year-on-year and translates into an increase of 10,3 % compared to the corresponding period of the year 2003. The number of contracts in saving stage accounting for 91,5 % of total number of contracts and stood at 6 008 973, which increased by 549 791 contracts in comparison with the end of corresponding period of the previous year.

Non-banking monetary institutions (CZ-NACE, rev.1, code 65.2 and 67) made in the referece period of 2004 a profit of CZK 11,3 billion which is 8,0 % below the level of the year before.

Investment companies and investment funds (CZ-NACE, rev.1, code 65.2) continued to grow, by making a profit of CZK 3,2 billion. The growth of pre-tax profit by 90,0 % was caused by the appropriate conditions on the market on one hand, on the other hand it was result of internal factors of companies which reduced their cost by 16 % (about CZK 1,1 billion). The total revenues rose by 4,5 % to total amount of CZK 9,0 billion.

We can predict continuous interest in medium-term and long-term financial products especialy in form of moving finance to stock and bond markets. Structure will be much more similar to highly developed “west” economies.

Financial leasing companies (CZ-NACE, rev.1, code 65.21) realized during the reference period a profit of CZK 3,7 billion, by 2,7 % more than year before. The Financial leasing companies reached revenues in total amount of CZK 95,0 billion (interannual fall by 1,9 %). Expenses fall by 2,1 % to final total amount of CZK 91,3 billion.

Received financial leasing instalments contributed to total revenues by amount of CZK 78,2 billion, by 3,2 % more than previous year.