Czech Banks Sector News - Final draft for the windfall profit tax for banks
-The finance ministry presented the final draft for the 60% windfall profit tax for banks-A 60% tax rate will be applied in 2023-2025 to excess pre-tax profits which are defined as profits above the average pre-tax profits during 2018-2021 increased by a factor 20%
-The finance ministry will set tax advances payable in 2023 to receive the cash immediately
-Only the 6 largest local banks should be subject of the extra profit taxation
-The pro-forma tax bill for KB would be CZK 6.7 bn and for Erste Group EUR 336 mn significantly above our latest model estimates and if using the new formula, but consider that government expectations might be over ambitious compared to our/market forecasts
Erste Group is a financial services provider based in Austria. As of Dec 31 2015, Co.'s total assets amounted to Euro199,743 million and the number of customers was approximately 16.5 million. Co.'s key business is the retail business, covering the entire spectrum from lending, deposit and investment products to current accounts and credit cards. In addition to providing financial services to private individuals, Co.'s core activities also include advisory services and support for corporate clients in financing, investment and access to international capital markets, public sector funding and interbank market operations.
Komercni banka is a universal banking group based in the Czech Republic. Co. is engaged in the provision of a range of financial services in retail, corporate and investment banking. Co.'s operating segments include: Retail Banking, the provision of products and services to individuals, such as among others building savings, pension insurance, overdrafts, credit card and personal loans and mortgages; Corporate Banking, the provision of products and services to corporate entities such as foreign currency and derivative products, syndicated and export financing, and guarantee transactions; and Investment Banking, which involves trading in financial instruments.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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