Erste Group - H1 2018 results

Net interest income increased – mainly in the Czech Republic and in Romania – to EUR 2,213.8 million (+3.3%; EUR 2,143.0 million). Net fee and commission income rose to EUR 959.3 million (+5.3%; EUR 910.9 million) mostly on the back of stronger income from payment services, asset management and lending. While net trading result declined significantly to EUR 11.9 million (EUR 102.9 million), the line item gains/losses from financial instruments measured at fair value through profit or loss improved to EUR 66.6 million (EUR 4.5 million). Operating income rose to EUR 3,374.1 million (+2.5%; EUR 3,292.8 million). The increase in general administrative expenses to EUR 2,076.5 million (+3.6%; EUR 2,003.5 million) was mainly attributable to higher personnel expenses of EUR 1,216.7 million (+5.7%; EUR 1,151.3 million). Depreciation and amortisation was up slightly (+1.8%); administrative expenses were almost unchanged (+0.5%). Other administrative expenses included almost all payments to deposit insurance systems expected in 2018 in the amount of EUR 80.2 million (EUR 68.6 million). Overall, the operating result was slightly higher at EUR 1,297.6 million (+0.7%; EUR 1,289.3 million). The cost/income ratio rose to 61.5% (60.8%).

Full press release.