Erste Group Bank AG Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Earnings Guidance for the Year 2018
July 31, 2018 at 05:07 pm IST
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Erste Group Bank AG reported earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net interest income of EUR 1,131.2 million against EUR 1,091.7 million a year ago. Operating income was EUR 1,719.0 million against EUR 1,675.2 million a year ago. Operating result was EUR 707.5 million against EUR 690.0 million a year ago. Net result attributable to owners of the parent was EUR 438.2 million against EUR 362.5 million a year ago. Return on equity was 12.8% against 11.1% a year ago.
For the six months, the company reported net interest income of EUR 2,213.8 million against EUR 2,143.0 million a year ago. Operating income was EUR 3,374.1 million against EUR 3,292.8 million a year ago. Operating result was EUR 1,297.6 million against EUR 1,289.3 million a year ago. Net result attributable to owners of the parent was EUR 774.3 million against EUR 624.7 million a year ago. Return on equity was 11.7% against 9.9% a year ago.
For the year 2018, the group expects 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 slightly growing revenues (assuming 5%+ net loan growth and interest rate hikes in the Czech Republic and Romania), slightly falling expenses due to lower project-related costs and 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%).