Economics

Gross domestic product 2.1 % yoy Consumer price inflation (inflation) 1.9 % yoy Industrial production 1.5 % yoy Gross domestic product development 2.1 % yoy Wage dynamics 7.4 % yoy nominal Monthly consumer price inflation (inflation) 2.5 % yoy total Monthly economic activity 0.9 %yoy (03-2026) Unemployment 4.93 % (04-2026) Trust indicators 4.8 % yoy

Stronger wave of mortgage refixing, while the interest-rate shock eases. Higher inflation remains a risk. Retail sales continued to gain momentum in March, together with construction, in contrast to weaker industrial performance The CNB's new outlook for higher rates "only" translated into hawkish communication April inflation accelerated by fuel, but also due to core price pressures The Czech economy slowed in Q1. Household purchasing power remains hopeful

Banking sector

Banking sector assets 11 919.00 CZK billion Number of employees 38 187 Number of banks by size 43 (total) Bank profits in the economy 128.96 CZK billion Profitability of the banking sector 1.13 % profit on assets Capital adequacy and the role of profit in it 23.19 % Interest income and expense 45.05 billion CZK Interest income in bank profits 176.74 billion CZK Net interest income 1.57 % of assets

Banking statistics for March 2026 Market forces in mortgage rates: the rise in market interest rates has only partially been reflected in mortgage rates. Strong competition in the market is helping. Banking statistics for February 2026 Loans are mainly driven by mortgages, which is why the CNB left the countercyclical reserve at 1.25%, but with the risk of an increase Banking statistics for January 2026

Loans and deposits

Loans and deposits

Credit dynamics 8.3 % yoy Deposit dynamics 5.6 % yoy Proportion of bad (non-performing) loans 1.5 % New loans in the economy 145.3 billion CZK New loans in the economy in detail 77 billion CZK Interest rates on new loans 4.5 %

Stronger wave of mortgage refixing, while the interest-rate shock eases. Higher inflation remains a risk. Banking statistics for March 2026 Market forces in mortgage rates: the rise in market interest rates has only partially been reflected in mortgage rates. Strong competition in the market is helping. Fiscal policy keeps all options open for CNB interest rate movements Is the unchanged CNB interest rate at 3.50% a sign of the coming bonanza or the calm before the storm?

CBA Hypomonitor

CBA Hypomonitor

Number of new mortgages granted without and with refinancing and increases 21 thousand; ytd Volume of newly granted mortgages without and with refinancing and increase 97.0 CZK billion; ytd Average interest rate on new mortgages 4.43 % Average size of a new mortgage 4.81 miles. CZK Illustrative average monthly mortgage payment 25 561 CZK Mortgage lending volumes for the whole year 398 billion CZK

Stronger wave of mortgage refixing, while the interest-rate shock eases. Higher inflation remains a risk. CBA Hypomonitor: March continued with a temporary boom in mortgages, thanks to a lower rate of 4.43%. Market forces in mortgage rates: the rise in market interest rates has only partially been reflected in mortgage rates. Strong competition in the market is helping. CBA Hypomonitor: February continued with a temporary boom in mortgages, at a rate of 4.46%. CBA Hypomonitor: the beginning of 2026 brought strong mortgage volume

Real estate prices

Real estate prices

Development of real estate offer prices 12.9 % yoy Development of realised prices of older flats 16.0 % yoy Development of realised prices of flats in Prague, %yoy 11.3 % yoy Prices of new and new-build flats and number of transactions 9.6 % yoy Prices of older flats and number of transactions 15.7 % yoy Prices of flats and houses 11.3 % yoy Prices of new and new flats by region 137.2 thous. CZK per m2 Prices of older flats by regional cities 75.3 thous. CZK per m2 House prices by regional towns 6.16 (price per house in CZK million)

Strong pace of growth in supply prices of flats also at the beginning of 2026 Stronger household incomes outpaced house price growth for six quarters House prices up 12 percent last year, rental housing up 10 percent in some regions House prices have maintained 10% momentum, which is not the case for disposable income Higher house prices spark richer debate over central bank macroprudential policy than first appears

CBA Forecast

CBA forecast: gross domestic product 2.6 % yoy CBA forecast: consumer prices (inflation) 1.7 % yoy CBA forecast: average wage 5.8 % yoy CBA forecast: unemployment 4.6 % CBA forecast: CNB interest rate 3.50 % CBA forecast: exchange rate against the euro 24.1 CZK/euro

CBA Macroeconomic Forecast 1Q26 (Part 2): interview with economist Pavel Sobíšek CBA Macroeconomic Forecast 1Q26 (Part 1): interview with economist Jan Vejmělek MACROECONOMIC FORECAST OF THE CZECH REPUBLIC 1Q 26 CBA Macroeconomic Forecast 4Q25 (Part 2): interview with economist David Havrlant CBA Macroeconomic Forecast 4Q25 (Part 1): interview with economist Petr Gapek

Banking sector
Net interest income

Net interest income

1.57 % of assets

Current value

2.06 % OF GDP

Current value

CBA Commentary

The net interest yield on banking sector assets in 2025 is 1.57%, which is lower than the previous year (1.62%). Net interest income of the banking sector relative to Czech nominal GDP in 2025 declined to 2.07% of GDP in 2025 from 2.1% recorded in the previous year, down from 2.1% in the previous year. In the latest available Q4, the banking net interest income ratio reached 2.06% of GDP, below the 2.4% long-term average since 2008 and below the 2.3% average net interest income-to-GDP ratio in the pre-Covidian quinquennium.

Net interest income

(%)

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 in % of GDP is quarterly values measured against seasonally adjusted quarterly nominal GDP.
The data include data for banks and branches of foreign banks providing services in the Czech Republic and data for branches of banks operating abroad.

Related Charts

Interest income and expense
Interest income in bank profits
Profitability of the banking sector
Bank profits in the economy

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Comments

Market forces in mortgage rates: the rise in market interest rates has only partially been reflected in mortgage rates. Strong competition in the market is helping.

Market forces in mortgage rates: the rise in market interest rates has only partially been reflected in mortgage rates. Strong competition in the market is helping.

Jaromír Šindel 15. 04. 2026

Comment by Jaromír Šindel, Chief Economist of the CBA: Mortgage rates are significantly determined by the movement of market interest rates. However, structural factors in the banking market are also important. The CNB's investigation of credit conditions in our analysis helps to explain what factors influence the difference between mortgage and market interest rates deviating from its normal level. The CBA analysis shows that a combination of stronger demand and competition among banks plays a key role. It is the latter that can lead to more favourable rates for clients without undermining market stability. The difference between mortgage rates and market rates that we have been monitoring is therefore mainly dampened by stronger demand, but in an environment of growing competition, which is key. Banks' profitability also plays a role, acting as a corrective mechanism to maintain competitive interest rate spreads but also market stability.

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