In terms of return on capital, domestic banks in the Czech Republic are among the best in Europe, the news site iHNed reported on Wednesday, after analysing data from annual reports and national bank statistics. Last year, net profits amounted to CZK 82.1 billion, an 8.9 percent increase when compared to 2017.
According to iHNed, the excellent results are partly down to the growth in the volume of loans provided and the subsequent increase in interest income. The latter is also supported by an increase in the Czech National Bank’s interest rate, which rose to 2 percent this May. This is in contrast to the situation in the Eurozone where, the European Central Bank lowered its key interest rate to -0.5 percent in September, the news site reports.
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