The slow economy and low interest rates contributed to the decrease. The Czech central bank lowered interest rates in fall 2012. Interest margins dropped 4.5 percent y-o-y to CZK 73.2bn in 2013. Analysts do not foresee an increase before 2015. 


Downward pressure on fees and provisions due to stronger competition in the banking sector also negatively impacted the banks’ 2013 performance, as did a fall in loan demand. Mortgages did not produce much revenue. Bank revenues is expected to remain flat in 2014. An upward trend won’t likely be seen until 2016, according top Milan Lávička, an analyst at J&T Bank.