Investor Presentaiton

Banking sector The Czech banking sector is primarily represented by banking institutions with international ownership. It is dominated by big foreign banking groups such as Erste, KBC, Societe Generale, UniCredit or Raiffeisen. Although the banking sector is significantly concentrated, small- and medium-sized banks have been able to strengthen their position on the Czech market in recent years. As of 31 December 2021, 46' banks (including foreign branches and building societies) offered banking services to clients in the Czech Republic; 35 of them were controlled by foreign investors and 11 by local stakeholders. The group of the four largest banks (banks with total assets greater than CZK 200 billion) continues to play a predominant role in the banking sector in the Czech Republic. As of 31 December 2021, their share of total banking assets equalled approximately 60 percent. Net profits of the Czech banking sector for 2021 were almost CZK 71 billion. The level of non-performing loans was approximately 1.5 percent. As a consequence of the rising inflation in the economy following the lifting of COVID 19 restrictions all over the world and the rising prices of commodities, the Czech National Bank started increasing the two-week repo rate throughout the year 2021. The two-week repo rate at the end of the year 2021 was 3.75% and the discount rate 2.75%. Both the amount of subjects on the financial market and the figures regarding the accounting data in this chapter were taken from the CNB ARAD database. (https://www.cnb.cz/docs/ ARADY/HTML/index_en.htm) 65

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