Wealth Management in the Czech Republic 2009

Table of Contents

OVERVIEW

• Catalyst
• Summary
• Methodology

EXECUTIVE SUMMARY

• Conservative attitudes to saving and investing have served Czech investors well recently
• HNWs are unsophisticated on investment matters and very conservative
• The Czech Republic has become much more competitive for wealth managers

THE CZECH REPUBLIC' S WEALTH

• Strong economic performance has provided an excellent nursery for new wealth in the Czech Republic
  • The Prague stock market has experienced years of strong price appreciation
  • Higher interest and money market rates have helped Czech investors in the last couple of years
• Czech investors have been playing it extra safe during the current crisis
  • Czechs have been strong buyers of long-term government debt
• The conservative habits of Czech investors have served them very well of late
  • The number of affluents in the country climbed by 2% in 2008 despite the asset price implosions

THE CZECH REPUBLIC' S WEALTH MANAGEMENT MARKET

• The Czech wealth management market is developing fast and providers need to focus on constantly improving their offering
• The Wealth Management Opportunity Index
  • Wealth management market features
  • Wealth management client characteristics

APPENDIX

• Datamonitor' s Wealth Management Opportunity Index
  • There are five key parameters when assessing a market for its wealth management potential
  • There are 18 components to the five key parameters of the wealth management opportunity index
• Definitions
• The drivers of growth in the wealthy population
  • Income growth (combined with inflation, changes in GDP by sector, household savings rates and debt levels)
  • Investment returns (market capitalization, interest rates and bond yields)
• The following measures are not, in themselves, drivers of wealthy population growth
  • Market capitalization
  • GDP
• The following measures are not drivers of wealthy population growth except under very restricted circumstances
  • Primary residence value growth
  • Inheritance
• Methodology
  • Global Wealth Model
• Bibliography
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

TABLES

• Table: Value of onshore liquid assets in the Czech Republic in euro bands (€ bn)
• Table: Forecast value of onshore liquid assets in the Czech Republic in euro bands (€ bn)
• Table: Number of individuals in the Czech Republic in euro bands (000s)
• Table: Forecast number of individuals in the Czech Republic in euro bands (000s)
• Table: Wealth Management Opportunity Index - Czech Republic
• Table: Wealth Management Opportunity Index with values - Czech Republic
• Table: Banks in the Czech Republic, and their respective ownership
• Table: Total assets held by different banking segments in the Czech Republic, 2004 - 2008

FIGURES

• Figure: The labor market benefited strongly from a growing economy
• Figure: The Prague Stock Exchange has not fallen as hard as others in Eastern Europe
• Figure: Higher interest rates have helped the country' s savers
• Figure: Households have increasingly been moving into government securities
• Figure: Currency and deposit dominate onshore liquid assets