Economics

Gross Domestic Product 2.1 % year-over-year Consumer Price Growth (Inflation) 1.8 % 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) 1.9 % yoy total Post-COVID Recovery of Economic Activity 2.5 %yoy (July 2026) Unemployment 5.10 % (08-2026) Confidence Indicators -2.4 % yoy

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 The CNB keeps rates at 3.75%. Core inflation and energy prices leave the door open for a rate hike in November With core inflation rising by 3 percent, hawkish pressure on the CNB shows no signs of easing The industrial sector got off to a slow start in the third quarter, though not across the board. Infrastructure bolstered the resilience of the construction industry

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

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 CNB tightens banks' capital buffer. Responds to faster credit growth and new risks, including fiscal

Loans and deposits

Loans and deposits

Loan Trends 10.8 % year-over-year Deposit Trends 4.7 % year-over-year Ratio of Non-Performing Loans 1.4 % New Loans in the Economy 136 billion CZK A Boost to the Economy from New Loans 18.2 % of GDP Interest Rates on New Loans 4.8 %

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 Two bank stress tests, one conclusion: the resilience of Czech banks The CNB is waiting for a new impetus and is counting on economic growth that is less inflationary Expect the CNB to hold in August—but keep a September hike to 4% on the radar

CBA Hypomonitor

CBA Hypomonitor

Number of new mortgages granted, including and excluding refinancing and loan increases 58 thousand; YTD Volume of Newly Granted Mortgages, Including and Excluding Refinancing and Top-Ups 273.4 billion CZK; YTD Average Interest Rate on New Mortgages 5.00 % Average Size of a New Mortgage 4.59 million CZK Illustrative Average Monthly Mortgage Payment 25 888 CZK Total mortgage volume for the entire year 381 billion CZK

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 CBA Hypomonitor: Higher Rates and Regulations Slowed Mortgage Growth, but the Market Remained Strong in June CBA Hypomonitor: A slight increase in the mortgage rate to 4.67% sustained solid activity in May

Real estate prices

Real estate prices

Trends in Real Estate Asking Prices 10.7 % 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)

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 Realized apartment prices are rising more slowly, but the regional markets have not yet cooled off Strong pace of growth in supply prices of flats also at the beginning of 2026

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
Bank Profits in the Economy

Bank Profits in the Economy

130.27 billion CZK

Current value

1.49 % of GDP

Current value

Commentary by the Czech Bar Association

The annual total of banks' after-tax profits in the second quarter of 2026 rose slightly to 1.49% of Czech GDP from 1.48% in the previous quarter. However, profitability is slightly lower than its annual total of 1.55% a year ago. The current profitability ratio roughly corresponds to the five-year pre-pandemic average (1.49%). Over the past five years, that is, since the second quarter of 2022, average annual profitability has been 1.44% of GDP. The banking sector achieved its highest profitability relative to GDP in 2012, at 1.56%, while the lowest ratio, 0.81%, was recorded in 2020. The current profitability relative to GDP is above the long-term pre-COVID average of 1.43% from 2008–2019, which, however, does not include the pandemic-induced decline in profitability from 2020 to 2021 to 1.03% of GDP.

Bank Profits in the Economy

CZK billion and % of GDP, annual figures

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

Banks' profit (loss) after taxes.
Profit in absolute terms is expressed as the annual sum of four consecutive quarters, and this sum is then expressed as a percentage of annual GDP.
The data also includes 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

Profitability of the Banking Sector
Number of Employees

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Two bank stress tests, one conclusion: the resilience of Czech banks

Two bank stress tests, one conclusion: the resilience of Czech banks

Jaromír Šindel 06. 08. 2026

The Czech National Bank has published two stress tests over the past two months, which at first glance yielded differing results. In the macro stress test from the June Financial Stability Report, the sector’s capital ratio fell to 15.8%, while in the August supervisory stress test, it rose to 18.4%. However, this is not a contradiction per se, but rather a consequence of their different purposes and methodologies. Both tests confirm that Czech banks would be able to weather even an exceptionally deep recession. Below, I analyze the four key differences between these tests.

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