The total capital ratio in Q3 2025 rose to 23.5% compared to 23.4% in the previous quarter. It is thus above the average 18.6% ratio of the pre-pandemic period 2015-2019 and the previous average over the past five years of 23%.
For the highest quality capital, CET1, the capital to risk-weighted assets ratio of the banking sector is 21.3%, compared to 21.2% in the previous quarter, and is thus above the 17.7% ratio of the pre-pandemic period 2015-2019. Over the past five years, the average has been 21.2%.
The banks' retained earnings (part of the highest quality capital CET1) of CZK 423bn represent 57% of total bank capital, which reached CZK 737bn in Q3 2025. Retained earnings accounted for 52% of total capital in the pre-Covidian five years, while in the last five years this share was 57%.

CNB ARAD

Total capital = Tier 1 (CET1 + AT1) + Tier 2.
Tier 1 capital is able to cover losses more easily, which mainly includes CET1 capital (composed of equity, retained earnings and reserves) and AT1 debt capital (which can cover losses more easily than Tier 2 capital).
The data also include data for banks and branches of foreign banks providing services in the Czech Republic and data for branches of banks operating abroad.

Banking sector

Quarterly

Bank profits in the economy
Profitability of the banking sector