Erste Group Bank AG Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Earnings Guidance for the Year 2018
November 01, 2018
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Erste Group Bank AG reported earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported net interest income of EUR 1,086.3 million against EUR 1,158.2 million a year ago. Operating income was EUR 1,644.2 million against EUR 1,722.1 million a year ago. Operating result was EUR 634.1 million against EUR 696.3 million a year ago. Net result attributable to owners of the parent was EUR 363 million against EUR 454 million a year ago. Return on equity was 11.7% against 14.4% a year ago.
For the nine months, the company reported net interest income of EUR 3,229.3 million against EUR 3,372 million a year ago. Operating income was EUR 4,936.9 million against EUR 5,096.2 million a year ago. Operating result was EUR 1,923.4 million against EUR 1,993.9 million a year ago. Net result attributable to owners of the parent was EUR 987.6 million against EUR 1,228.3 million a year ago. Return on equity was 10.5% against 12.5% a year ago.
For the year 2018, the company aims to achieve a return on tangible equity (ROTE) of more than 10% in 2018 (based on average tangible equity in 2018). The underlying assumptions are growing revenues (assuming 5%+ net loan growth and interest rate hikes in the Czech Republic and Romania) and flat expenses with risk costs remaining at historically low levels.
Erste Group Bank AG is one of the leading Austrian banking groups. Net interest income by activity breaks down as follows:
- retail banking (42.4%);
- corporate banking (24.7%)
- investment, finance and market banking (8.4%);
- other (24.5%).
At the end of 2022, the group was managing EUR 222.6 billion in current deposits and EUR149.3 billion in current loans.
Products and services are marketed through a network of 2,029 branches located in Austria (797), Czech Republic (398), Romania (321), Slovakia (190), Croatia (133), Hungary (102) and Serbia (88).
Net interest income breaks down geographically as follows: Austria (44.7%), Europe (52.8%) and other (2.5%).
Erste Group Bank AG Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Earnings Guidance for the Year 2018