Erste Group Bank AG reported an operating result of 2.89 billion EUR for the first nine months of 2022, a 11.4 % rise compared to the same period a year earlier. The 19.5 % rise in net interest income to 4.39 billion EUR reflected both solid lending growth and favorable interest rate developments, especially in non-Eurozone markets. Net fee and commission income was up 8.3 % to 1.83 billion EUR, driven mainly by gains in payments and asset management. During the reporting period, the rise in operating income (+9.3 % to 6.27 billion EUR) outpaced that in operating expenses (+7.7 % to 3.38 billion EUR). Risk costs rose to 158 million EUR, reflecting a dimming macro environment. Both the NPL ratio (2.0 % compared to 2.4 % at the end of 2021) and the NPL coverage ratio (96.8 % vs. 90.9 %) improved. The CEE banking group’s net profit amounted to 1.65 billion EUR (1-9/2021: 1.45 billion EUR).

Erste Group Bank AG reported a 16.3% rise in its operating result to 4 billion euros in its preliminary results for 2022. Net interest income (NII) increased by 19.6% to 5.95 billion euros on the back of strong loan volume growth and rate hikes across all of Erste Group’s core markets. Net fee and commission income rose 6.5% to 2.45 billion euros, supported by significant growth in payment services and asset management. The cost-income ratio improved to 53.4%, as the rise in operating income outpaced that in operating expenses. The banking group’s bottom line in 2022 came in at 2.16 billion euros (2021: 1.92 billion euros). Erste Group also confirmed its financial outlook for 2023, which includes continued loan growth around 5% and a rise in NII of ca. 10%. The banking group will propose a FY2022 dividend of 1.90 euros per share to shareholders at its annual general meeting in May.

”The economies in Central and Eastern Europe proved more resilient than expected this past year: they posted solid GDP growth despite the challenges brought about by the terrible war in Ukraine. Like much of the world, the CEE region faces a sharp decline in economic growth this year. But we don’t expect the region to slip into recession and are confident that its growth story remains intact. That confidence is also reflected in the robust financial outlook that we’ve just confirmed, which includes a solid loan growth target. We will continue to support the people and economies of our region to build up financial wealth, both through our lending practices and our commitment to customer-focused innovation,” explains Willi Cernko, CEO of Erste Group.

Read more in the attached press release.