Erste Group - Investor information 2019

Erste Group posts net profit of EUR 377.0 million in 1-3 2019, outlook confirmed 

P&L 1-3 2019 compared with 1-3 2018; balance sheet as of 31 March 2019 compared with 31 December 2018

Net interest income increased – mainly in the Czech Republic, but also in other core markets – to EUR 1,160.9 million (EUR 1,082.6 million). Net fee and commission income rose to EUR 487.7 million (EUR 478.6 million) primarily on the back of payment services. While net trading result improved significantly to EUR 153.3 million (EUR 11.3 million), the line item gains/losses from financial instruments measured at fair value through profit or loss declined to EUR -77.1 million (EUR 30.3 million), both line items being impacted by valuation effects related to own liabilities from debt securities issued. Operating income rose to EUR 1,771.7 million (EUR 1,655.1 million). The increase in general administrative expenses to EUR 1,115.6 million (+4.8%; EUR 1,065.0 million) was attributable to a rise in other administrative expenses to EUR 358.3 million (+4.0%; EUR 344.5 million) as well as higher personnel expenses in the amount of EUR 621.9 million (+2.9%; EUR 604.5 million). Other administrative expenses included almost all contributions to deposit insurance systems expected in 2019 in the amount of EUR 87.5 million (EUR 74.2 million). The increase in amortisation and depreciation to EUR 135.4 million (EUR 115.9 million) is attributable to the first-time application of the new financial reporting standard for leases (IFRS 16) as of 1 January 2019, while a corresponding positive effect was recorded in other administrative expenses. Overall, the operating result improved to EUR 656.0 million (EUR 590.2 million) and the cost/income ratio to 63.0% (64.3%).

Full press release.