Erste Group - Investor information 2018

02.11.2018 - Erste Group: Q3 2018 results

Erste Group posts net profit of EUR 1,228.3 million in 1-9 2018, volume growth and interest rate hikes drive operating performance

HIGHLIGHTS

P&L 1-9 2018 compared with 1-9 2017; balance sheet as of 30 September 2018 compared with 31 December 2017

Net interest income increased – mainly in the Czech Republic and Romania – to EUR 3,372.0 million (+4.4%; EUR 3,229.3 million). Net fee and commission income rose to EUR 1,430.7 million (+5.1%; EUR 1,361.9 million), primarily on the back of significantly higher income from brokerage commissions – mostly insurance products –, but also from payment services, asset management and lending. While net trading result was down at EUR -50.4 million (EUR 139.3 million), the line item gains/losses from financial instruments measured at fair value through profit or loss improved to EUR 165.8 million (EUR 12.1 million). Operating income rose to EUR 5,096.2 million (+3.2%; EUR 4,936.9 million). The increase in general administrative expenses to EUR 3,102.3 million (+2.9%; EUR 3,013.6 million) was mainly attributable to higher personnel expenses of EUR 1,830.5 million (+4.8%; EUR 1,747.2 million). Depreciation and amortisation was up (+2.7%); administrative expenses were almost unchanged (-0.4%). Other administrative expenses included almost all payments to deposit insurance systems expected in 2018 in the amount of EUR 84.2 million (EUR 74.7 million). Overall, the operating result was higher at EUR 1,993.9 million (+3.7%; EUR 1,923.4 million). The cost/income ratio improved slightly to 60.9% (61.0%).

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