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Czech Republic: Pension Funds Profit At €153 Million In 2005, Up By 44.2% Y/Y

Pension funds profits amounted to CZK4.57 billion (€143 million) in 2005, representing a 44.2% year-over-year growth, the Association of Pension Funds data showed.

Pension funds profits amounted to CZK4.57 billion (€143 million) in 2005, representing a 44.2% year-over-year growth, the Association of Pension Funds data showed. The pension funds' profits can be ascribed to the continuing favorable situation on the capital markets, as well as by the low costs per client. In terms of individual pension funds' profits, Winterthur penzijni fond registered the highest net profit of CZK1.61 billion, Penzijni fond Ceske pojistovny was second with CZK961 billion, followed by Penzijni fond Ceske sporitelny with CZK629.5 million worth of profit, Penzijni fond Komercni banky with CZK621 million, ING Penzijni fond with CZK578 million and CSOB Penzijni fond Stabilita with CZK405 million. At end-December, pension funds registered 3.284 million clients, up by 11.4% year-over-year, with nearly a third of Czechs and 60% of working population being private pension funds' clients.

Moreover, the number of private pension scheme members with employer contributions grew by 15.9% year-over-year to 780,000 clients as of the end of last year. Concentration on Czech pension funds market continues as at present, after the announced merger of Hornicky PF and CSOP PF Progres, there are only 10 pension funds compared to the original 44. Meanwhile, at end-2005 pension funds' assets totaled CZK 12.6 billion, growing by 20% year-over-year. The highest amount of assets worth CZK26.3 billion was managed by Winterthur penzijni fond. Second ranked Penzijni fond Ceske pojistovny managing assets worth CZK24.4 billion, followed by Penzijni fond Ceske sporitelny with CZK15.1 billion and by Penzijni fond Komercni banky with CZK15 billion. ING Penzijni fond managed assets amounting to CZK13.3 billion, while the pension fund CSOB Stabilita assets totaled CZK10.3 billion.

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