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Ceska Sporitelna Granted Loans Worth More Than CZK 28 bn Last Year, Increasing Its Market Share

Last year, Ceska Sporitelna granted unsecured loans to private individuals in a total volume of CZK 28.5 bn. The overall loan portfolio increased from CZK 71.4 bn. to CZK 80.5 bn. The Bank thus increased its market share by 0.8%, to 44.9%, affirming its primacy on the market. Also the average amount and repayment term of the cash loans granted are growing, in both cases by 5% year-on-year. In 2009, the average amount of a loan granted was CZK 115,889, and the average repayment term 75 months. The quality of the portfolio remains high, thanks to the thorough loan risk management.

“We are pleased that in spite of the difficult period of an economic crisis, there is increased interest in retail loans. In a year-on-year comparison, we have noted a slight drop; nevertheless, we are keeping above the overall market trend. This year, we are not expecting a significant revival; we estimate that this year’s loan production will be roughly on the same level as last year,” said Martin Techman, Director of the Sales Development Section of Ceska Sporitelna.

Clients can take out insurance of their ability to repay their loans. In spite of the insurance not being compulsory with Ceska Sporitelna loans, insurance of the ability to pay was taken out for around 77% of loans (it was 72% in 2008). And interest in insurance of the ability to pay in cases when clients lose their jobs is also increasing. At the beginning of 2009, 20% of clients were using this type of insurance, and 47% at the end of the year. For those clients who lose their jobs, we have prepared, in association with the CARDIF PRO VITA insurance company and the Manpower job agency, a special programme that will help the client get back to work.

Arranging a loan at Ceska Sporitelna is easy. If the loan applicant is a Ceska Sporitelna client and his salary is regularly credited to his account, all he needs in order to arrange the loan is his personal identification card. Other applicants must document their income level. In granting loans, Ceska Sporitelna observes the principle of responsible lending. That means that it only lends to the extent that its clients are able to repay over the long term. Hence, in 2009, it focused primarily on existing clients, with whose banking history it is familiar. 

Since the end of last year, clients who are eligible for a loan of a certain amount, thanks to their long-term ability to repay, can get an overdraft facility - a facility that allows them to overdraw their account, or to increase their overdraft facility if they already have one, through nearly all Ceska Sporitelna ATMs. They can learn how much the Bank will loan them in their Personal Menu in the ATM, upon entering their PIN code. They do not need to visit the Bank, and the amount will be automatically credited to their account. The final decision as to whether a client will opt for an overdraft facility is naturally up to the client.

For further information please contact the Ceska Sporitelna Financial Group Press Centre:

Press release - PDF version [new window]