Banks wave goodbye to CZK 41bn
14. 6. 2016 | Source: BusinessInfo.cz
The six biggest domestic banking houses have sent dividends to their foreign owners amounting to nearly CZK 41bn, or 75 hellers from each crown they earned last year. The Czech subsidiaries have thus paid out the highest such sum in the country's financial history, according to figures contained in annual reports and bank communications.
The goose that laid the most golden eggs in the Czech banking sector was ČSOB. Belgian owner KBC handed over dividends of CZK 14.78bn, its entire 2015 profit. Last year the Belgians at least left a symbolic half a billion crowns in ČSOB's vaults.
A similar situation prevailed at other banks. While last year Austria's Erste took three-quarters of the profit recorded by its Czech unit Česká spořitelna, this year it withdrew 88 percent. Although the profit of the domestic retail banking number one fell by nearly a billion crowns, the Austrians' dividend demand amounted to nearly half a billion crowns more than it did last year.
France's Société Générale, meanwhile, is requesting a larger share of the profit of Czech subsidiary Komerční banka, and the Austrian parent group of the domestic Raiffeisenbank is also set to receive more in dividends.
The exception in this trend is UniCredit, which will not be sending a crown to Italy despite having sent two billion crowns last year. In all last year, the financial institutions sent the parent companies CZK 14bn more than this year, but that was because of an extraordinary dividend paid out in the build-up to the sale of GE Money Bank.
Originally published in E15 weekly, economic and business newsmagazine. Author: Jaroslav Bukovský