Ceska Sporitelna’s subsidiary Factoring ČS generated factoring turnover of CZK 41.7 bn in 2011 (EUR 1.6 bn), achieving a 33% year-on-year increase. The market share of Factoring České spořitelny thus grew to 32% and the company is the leader of the Czech factoring market.

The greatest interest was in domestic factoring services, which noted a 32% increase in 2011 (CZK 7.6 bn), to a total of CZK 31.6 bn. There was also significant interest in the financing and administration of the accounts receivable of domestic clients from their foreign customers, i.e., export factoring, which noted an 86% increase compared to 2010 (CZK 3.4 bn), amounting to CZK 7.4 bn.

“The increased interest of both large companies and small and medium-sized enterprises in the financing, administration, and insurance of accounts receivable was evident in, among other things, a rapid growth of non-recourse factoring, when our company secures the client’s risk of non-payment by the client’s customers. This type of factoring with insurance was up by 89%, to CZK 15.6 bn, and our company’s market share in the segment thus grew to 46%”, said Karel Machytka, Vice Chairman of the Management Board and Deputy CEO for Sales of Factoring České spořitelny.

Factoring České spořitelny has been a member of the Ceska Sporitelna Financial Group since 2001. The nature of factoring lies in the repeated assignment and administration of performing accounts receivable that are not yet due, with the purpose of their payment and securing the risk of non-payment by the contractually agreed upon customers of the client, both domestically and abroad. According to the Czech Association of Factoring Companies, the Czech factoring market achieved an aggregate volume of CZK 131 bn in 2011, which means 14% growth over 2010.