Research Update: Ceska Sporitelna Outlook Revised To Stable Amid Receding Economic Risks; Ratings Affirmed At 'A/A-1'

Ceska sporitelna, a.s. reported better-than-expected financial results in the first quarter of 2024, supported by the receding economic risks in its home country. In our view, Czechia will return to growth in 2024, with real GDP increasing by 1.25% and an average 2.3% over 2025-2027. The Czech banking sector should benefit from further interest rate cuts by the Czech National Bank and a general easing of financial conditions. This includes Ceska, as one of the largest banks in the country. We therefore revised our outlook on Ceska sporitelna to stable from negative and affirmed the 'A' long-term issuer credit rating (ICR) and the 'A-1' short-term ICR. In our view, the stable outlook reflects that the bank will maintain a solid

...- Ceska sporitelna, a.s. reported better-than-expected financial results in the first quarter of 2024, supported by the receding economic risks in its home country. - In our view, Czechia will return to growth in 2024, with real GDP increasing by 1.25% and an average 2.3% over 2025-2027. - The Czech banking sector should benefit from further interest rate cuts by the Czech National Bank and a general easing of financial conditions. This includes Ceska, as one of the largest banks in the country. - We therefore revised our outlook on Ceska sporitelna to stable from negative and affirmed the 'A' long-term issuer credit rating (ICR) and the 'A-1' short-term ICR. - In our view, the stable outlook reflects that the bank will maintain a solid balance sheet and financial performance while benefitting from a recovery of the Czech economy....

Research Update