Erste Group - H1 2017 results

Net interest income declined to EUR 2,143.0 million (-2.3%; EUR 2,194.1 million) despite lending growth, mostly due to lower interest income from the government bond portfolio and a lower unwinding effect. Net fee and commission income increased to EUR 910.9 million (+2.9%; EUR 884.9 million). Income from the securities business and from asset management was up substantially, while income from the lending business declined. The net trading result decreased to EUR 102.9 million (-14.3%; EUR 120.0 million). While operating income was almost stable at EUR 3,292.8 million (-0.7%; EUR 3,316.6 million), general administrative expenses rose to EUR 2,003.5 million (+1.2%; EUR 1,980.3 million) in line with expectations. This was attributable to an increase in other administrative expenses as well as depreciation and amortisation while personnel expenses were nearly unchanged at EUR 1,151.3 million (-0.1%; EUR 1,152.7 million). Almost all projected deposit insurance payments for 2017 in the amount of EUR 68.6 million (EUR 79.3 million) are already included in this line item. Consequently, the operating result decreased to EUR 1,289.3 million (-3.5%; EUR 1,336.3 million). The cost/income ratio rose marginally to 60.8% (59.7%).

Full press release (ENG)