Banks' profitability in the third quarter of 2025 reached 1.18% of the banking sector's average assets and 20% of its Tier 1 capital. Banks' profitability relative to assets remained essentially unchanged at 1.18% compared to the previous quarter. This profitability has averaged 1.17% over the last four known quarters, above the 1.14% annual average achieved a year ago. At the same time, profitability in terms of return on assets in the last quarter is above the pre-pandemic average of 1.16% from 2015-2019 (the long-term average from 2008-2019 was 1.25%). In the last five years, i.e. from Q3 2021, profitability has reached 1.02% of assets. In the case of banks' profitability relative to Tier 1 capital, the return on Tier 1 capital fell to 20% from 20.2% in the previous quarter. Return on capital averaged 18.8% over the past four quarters, above the 18.4% annual average a year ago. Compared to previous trends, profitability to 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%). Over the last five years, from Q3 2021, profitability to Tier 1 capital has shown a return of 17%.
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.