Banks' profitability in the fourth quarter of 2024 reached 1.15% of the banking sector's average assets and 18.5% of its Tier 1 capital. Banks' profitability relative to assets fell to 1.15% from 1.16% in the previous quarter. This profitability has averaged 1.09% over the past year, above the 1.07% annual average achieved in 2023. At the same time, profitability in terms of return on assets in the last quarter is below the pre-pandemic average of 1.16% from 2015-2019 (the long-term average from 2008-2019 was 1.25%). In the case of banks' profitability relative to Tier 1 capital, its return on Tier 1 capital rose to 18.5% from 18.4% in the previous quarter. Return on capital averaged 17.8% over the past four quarters, above the 17.2% annual average a year ago. Relative to prior trends, return on Tier 1 capital in the latest quarter is above the pre-pandemic average of 17.8% (the long-term average from 2008-2019 was 20.5%).
Source of primary data
CNB ARAD
Note
This is the ratio of year-to-date annualized after-tax profit to average assets and capital over the period.
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.