The average mortgage rate rose to 5.42 percent at the beginning of August, the highest level in two years. The defense and engineering holding company CSG announced strong half-year results — revenue increased by 17.2 percent, and net profit almost doubled. In 2022, the Czech Republic invested 43.3 billion crowns in research and development. The Prague Stock Exchange slightly corrected from its historical high on Friday, with the PX index down 0.71 percent.
The average mortgage rate rose by 0.1 percentage point month-over-month at the beginning of August to 5.42 percent. This was the fifth consecutive increase and represents the highest level in two years. This is according to data from the Swiss Life Hypoindex, which is compiled based on offer rates at the beginning of each month. The methodology reflects the current average offer rate for a mortgage loan covering 80 percent of the property's value.
The defense and engineering holding company CSG, owned by entrepreneur Michal Strnad, announced its results for the first half of this year on Friday. Revenue increased year-on-year by 17.2 percent to €3.25 billion, or approximately 78.8 billion crowns. Gross operating profit (EBITDA) rose by 11.5 percent to €863 million, and net profit from continuing operations jumped by 84.8 percent to €572 million. The Defense Systems division was the main driver of growth, with an operating margin of 28.8 percent.
CSG also announced its expansion into the American market. The group has opened an office in Washington and started construction of the Future Artillery Complex weapons complex in the state of Iowa. The total volume of confirmed orders and business opportunities under negotiation increased to €46 billion. Management of the group confirmed its full-year revenue forecast for the range of €7.4 to €7.6 billion.
The Prague Stock Exchange slightly corrected from its historical high reached the previous day. The PX index fell by 0.71 percent to 2,785.07 points. Financial stocks and the defense company CSG were among the biggest losers, while shares of Colt CZ and the energy company ČEZ performed better. Trading in the Czech crown was calm — it weakened by two halers against the euro to 24.26 crowns, and strengthened by two halers against the dollar to 21.00 crowns.
The Czech Republic invested 43.3 billion crowns in research and development last year, according to data from the Czech Statistical Office. In a ranking of EU countries, the Czech Republic ranks 16th. Spending on science and research remains below the EU average, with the business sector still accounting for the largest share of its funding.
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