Economics

Gross Domestic Product 2.1 % year-over-year Rise in Consumer Prices (Inflation) 1.9 % year-over-year Industrial Production 2.0 % year-over-year Gross Domestic Product Trends 1.9 % yoy Wage Trends 6.4 % year-over-year (nominal) Monthly Changes in Consumer Prices (Inflation) 2.5 % yoy total Post-COVID Recovery of Economic Activity 2.5 %yoy (July 2026) Unemployment 5.10 % (08-2026) Confidence Indicators -2.4 % yoy

September inflation marked the start of a return to the upper limit of the CNB’s tolerance band Banking Statistics for August 2026 Slower growth in the Czech economy in the first half of the year was once again accompanied by weak productivity and a high savings rate Weaker economic sentiment is also accompanied by a hawkish signal for the CNB Focus: Higher Diesel Prices as a Structural Problem That Price Regulation Does Not Solve

Banking sector

Banking Sector Assets 12 086.00 billion CZK Number of Employees 37 779 Number of Banks by Size 43 (total) Bank Profits in the Economy 130.27 billion CZK Profitability of the Banking Sector 1.12 % return on assets Capital Adequacy and the Role of Profit in It 23.01 % Net interest income 1.55 % of assets Interest Income and Expenses 46.22 billion CZK Interest Income in Banks' Profits 181.70 billion CZK

Focus: Mortgage Rates: Not All Rates Are the Same The CNB keeps rates at 3.75%. Core inflation and energy prices leave the door open for a rate hike in November Two bank stress tests, one conclusion: the resilience of Czech banks Banking Statistics for June 2026 Mortgage standards have tightened, but not only strong demand has mitigated the impact on lending conditions

Loans and deposits

Loans and deposits

Loan Trends 10.8 % year-over-year Deposit Trends 5.5 % year-over-year Ratio of Non-Performing Loans 1.4 % New Loans in the Economy 109 billion CZK A Boost to the Economy from New Loans 17.0 % of GDP Interest Rates on New Loans 5.1 %

Focus: Mortgage Rates: Not All Rates Are the Same Banking Statistics for August 2026 The CNB keeps rates at 3.75%. Core inflation and energy prices leave the door open for a rate hike in November Banking Statistics for July 2026 The CNB is waiting for a new impetus and is counting on economic growth that is less inflationary

CBA Hypomonitor

CBA Hypomonitor

Number of new mortgages granted, including and excluding refinancing and loan increases 64 thousand; YTD Volume of Newly Granted Mortgages, Including and Excluding Refinancing and Top-Ups 301.4 billion CZK; YTD Average Interest Rate on New Mortgages 5.10 % Average Size of a New Mortgage 4.67 million CZK Illustrative Average Monthly Mortgage Payment 26 540 CZK Total mortgage volume for the entire year 384 billion CZK

CBA Hypomonitor: September Stabilization at a Higher-than-Normal Rate of 5.1% Focus: Mortgage Rates: Not All Rates Are the Same CBA Hypomonitor: The cooling of the mortgage market continued in August, with rates at 5% CBA Hypomonitor: Higher Rates Cooled the Mortgage Market in July, but Not Its Strength Mortgage standards have tightened, but not only strong demand has mitigated the impact on lending conditions

Real estate prices

Real estate prices

Trends in Real Estate Asking Prices 8.9 % year-over-year Trends in Actual Sale Prices of Older Apartments 14.0 % year-over-year Trends in Actual Apartment Prices in Prague, % yoy 11.3 % year-over-year Prices of New and Nearly New Apartments and the Number of Transactions 9.7 % yoy Prices of Older Apartments and the Number of Transactions 10.8 % year-over-year Prices of Apartments and Single-Family Homes 8.3 % year-over-year Prices of New and Nearly New Apartments by Region 146.6 thousand CZK per square meter Prices of Older Apartments by Regional Capital City 78.3 thousand CZK per square meter Prices of Single-Family Homes by Regional Capital Cities 6.51 (price per house in millions of CZK)

Slower growth in the Czech economy in the first half of the year was once again accompanied by weak productivity and a high savings rate Real estate price growth has slowed to below 8% on an annualized basis, but older properties are maintaining a 10% growth rate The surprising slowdown in the rise of prices for new apartments in Prague has not carried over to older apartments Transaction prices for apartments did not slow down much in the second quarter High savings, rising property prices and little relief for the CNB

CBA Forecast

CBA Forecast: Gross Domestic Product 2.0 % year-over-year CBA Forecast: Consumer Prices (Inflation) 2.0 % year-over-year CBA Forecast: Average Wage 7.1 % year-over-year CBA Forecast: Unemployment 4.9 % CBA Forecast: CNB Interest Rate 3.75 % CBA Forecast: Exchange Rate Against the Euro 24.2 EUR/CZK

CBA Macroeconomic Forecast for Q3 2026 (Part 2): An Interview with Economist Adam Ruschka CBA Macroeconomic Forecast for 3Q26 (Part 1): Interview with Economist Petr Dufek CBA MACROECONOMIC FORECAST FOR THE THIRD QUARTER OF 2026 CBA Macroeconomic Forecast 2Q26 (Part 2): interview with Helena Horská CBA Macroeconomic Forecast 2Q26 (Part 1): interview with economist Petr Gapek

Banking sector
Interest Income in Banks' Profits

Interest Income in Banks' Profits

181.70 billion CZK

Current value for 2Q 26 – 3Q 25

174.20 billion CZK

ytd_y-1

Commentary by the Czech Bar Association

The share of net interest income in banks’ pre-tax profit in the second quarter of 2026 remained virtually unchanged at 120%. It was also higher than the average of 118% in 2024.
Net interest income accounted for 67% of operating income in the second quarter of 2026, down from 68% in the previous quarter. At the same time, they accounted for a lower share than in 2025, when net interest income made up 68.1% of profit from financial and operating activities.
The latest available net interest income figures for the second quarter of 2026, compared to the five-year pre-pandemic period (2015–2019), accounted for a smaller share of pre-tax profit (118% vs. 132%), but a larger share of profit from financial and operating activities (68% vs. 65%).

Interest Income in Banks' Profits

CZK billion and % of profit, annual total

CBA Monitor

You can hide a data set by clicking on the data set name in the chart legend.

Source of Primary Data

CNB ARAD

Category

Banking Sector

Data Frequency

quarterly

Note

Net interest income and other variables are included in the chart and calculation as the annual total of four consecutive quarters.
The data also include figures for banks and branches of foreign banks providing services in the Czech Republic, as well as figures for branches of banks operating abroad.

Related Charts

Interest Income and Expenses
Net interest income
CBA Forecast: CNB Interest Rate

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Comments

Focus: Mortgage Rates: Not All Rates Are the Same

Focus: Mortgage Rates: Not All Rates Are the Same

Jaromír Šindel 08. 10. 2026

The market price of three-year funds has risen by approximately 1.4 percentage points since February, while mortgage rates have risen by roughly one point. The rise in market rates has thus been only partially reflected in mortgage rates so far. It is important to distinguish between the aggregate offered rate, the rate for the most commonly chosen fixed-rate term, and the interest rate that the client actually negotiates. The spread between mortgage and market rates—which should not be confused with net profit—has long been among the lowest in the EU for banks in the Czech Republic and has even fallen below its long-term average in recent years. This is also consistent with banks’ lower net interest margin, expressed as the ratio of net interest income to assets.

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