Erste Group posts EUR 262.2 mln net profit after strong Q1 2017

Erste Group has posted an EUR 262.2 mln net profit in the first quarter of 2017. According to group, the performance was supported by the healthy macroeconomic environment across CEE and the continuation of last year’s positive trends.

Specifically, lending volumes grew at a stable level especially in retail banking, risk costs remained historically low, asset quality remained very solid with a NPL ratio below five percent, allowing the group to and to maintain a high level of capitalization, with a core tier one capital ratio (phased-in) of 13.0 percent.

Cost base rose during the first quarter, partly reflecting spending needed to address regulatory requirements, but mainly driven by investments in further expanding the services they can offer digitally to customers.

“We’re pleased that our performance was also recently acknowledged by rating agencies, with Standard and Poor’s and Fitch raising our long-term ratings to A- (Positive) and A- (Stable), respectively. The trends that we see at the Group level are also reflected locally: all our subsidiaries had a profitable first quarter in 2017,” said Andreas Treichl, CEO of Erste Group Bank AG.

In the interim management report, financial results from January-March 2017 are compared with those from January-March 2016 and balance sheet positions as of 31 March 2017 with those as of 31 December 2016.