Core status within Erste Group Bank AG. Largest Czech bank by loans and deposits size, with a No. 1 position in retail. Large and stable retail deposit base that underpins a sound funding profile. Improved operational efficiency that bolsters earnings. Geographical concentration in the Czech Republic. Gradually increasing credit risk profile following a shift into more vulnerable segments. Low interest rate environment that constrains revenues. The ratings on Czech bank Ceska Sporitelna a.s. (CS) reflect both its "core" status within its 98% owner, Austria-based Erste Group Bank AG (Erste; A/Stable/A-1), and its leading position in the stable CZ retail banking market. In Standard&Poor's Ratings Services' view, CS' financial profile is satisfactory overall. Still, we have observed a gradual
