Banks' annual profitability in the fourth quarter of 2025 reached 1.13% of the banking sector's average assets and 18.9% of its Tier 1 capital. Banks' annual profitability in terms of return on assets fell to 1.13% from 1.18% in the previous quarter and is below the 1.17% annual average achieved in 2024. 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 1.24%). In the last five years, i.e. from Q4 2021, profitability has reached 1.05% of assets. In the case of banks' profitability relative to Tier 1 capital, its return fell to 18.9% from 20% in the previous quarter. Return on capital is above the 18.8% in the same period a year ago. Compared to previous trends, profitability relative to Tier 1 capital is above the pre-pandemic average of 17.4% in the latest quarter (the long-term average from 2008-2019 was 20.5%). Over the last five years, i.e. from Q4 2021, profitability relative to Tier 1 capital has shown a return of 16.4%.
Source of primary data
CNB ARAD
Note
In the case of return on capital, it is the ratio of year-to-date annualized after-tax profit to average ytd TIER capital over the period. In the case of return on assets, it is the annual average of quarterly after-tax profit to average annual assets. 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.