CNB summarized 9M12 results of Czech banks. Czech banks earned Kč 52.2bn in the first three quarters, up y/y by 10 bln. CZK. Q1-Q3 financial and operational profit of the banks increased y/y by 2.3 % to 126.3 bln. CZK. Their interest income posted a rise of 1 % to 129.5 bln. CZK. Fee and commission income of the bank, on the other hand, decreased by 2.5 % to 35.8 bln. CZK. The banking sector´s capital adequacy increased to 16.35 % from 15.70 % last September, CNB said.
Boston Consulting Group found that Czech banks had the highest average return on capital (7.0%) in Europe during the period 2007-2011 and the third highest in the world, behind Indonesia (20.2%) and Mexico (10.2%). Of other European banks, only Turkish ones posted a positive return on capital (5.5%). The return was calculated using the dividend, rise or fall in share price, and investment. /NEUTRAL/