DGAP-News: Erste Group returns to profitability in Q4 11 and cuts net loss for 2011 to EUR 718.9 million; timely compliance with EBA capital requirement
(firmenpresse) - DGAP-News: Erste Group Bank AG / Key word(s): Preliminary
Results/Preliminary Results
Erste Group returns to profitability in Q4 11 and cuts net loss for
2011 to EUR 718.9 million; timely compliance with EBA capital
requirement
29.02.2012 / 07:30
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Erste Group returns to profitability in Q4 11 and cuts net loss for 2011 to
EUR 718.9 million; timely compliance with EBA capital requirement
HIGHLIGHTS
- In the fourth quarter 2011, net profit after minorities amounted to EUR
254.1 million. This solid quarterly result cut the net loss for the
year after minorities to EUR 718.9 million.
- At 31 December 2011, the core tier 1 ratio (total risk; Basel 2.5)
stood at 9.4% (year-end 2010: 9.2%; Basel 2). Calculated by the EBA
(European Banking Authority) method the core tier 1 ratio was 8.9% at
year-end 2011. The capital shortfall to be covered by the end of June
was reduced from EUR 743 million to EUR 166 million.
- Erste Group's shareholders' equity amounted to EUR 12.0 billion at 31
December 2011 (year-end 2010: EUR 13.1 billion) and core tier 1 capital
to EUR 10.7 billion (year-end 2010: EUR 11.0 billion). Through a
variety of measures, in particular the reduction of non core business,
total risk-weighted assets were reduced by 4.8% versus year-end 2010 to
EUR 114.0 billion.
- Total assets, at EUR 210.0 billion, were up 2.1% in 2011 from EUR 205.8
billion. The loan-to-deposit ratio stood at 113.3% at 31 December 2011
(year-end 2010: 113.1%). Customer deposits, at EUR 118.9 billion, were
up almost 1.6% year on year, while lending volume rose by 1.8% to EUR
134.8 billion.
- Net interest income improved by 2.4% from EUR 5,439.2 million in the
financial year 2010 to EUR 5,569.0 million in the financial year 2011.
At the same time, net fee and commission income declined by 3.0% to EUR
1,787.2 million (2010: EUR 1,842.5 million). At EUR 122.3 million, the
net trading result was 62.0% lower than in 2010 (EUR 321.9 million).
This was due primarily to changes in the fair value of the CDS
portfolio of the International Business unit in the amount of EUR 182.6
million, which was closed out almost completely in the fourth quarter
2011.
- Operating income of EUR 7,478.5 million (2010: EUR 7,603.6 million) was
impacted by the net trading result. Despite higher inflation rates,
general administrative expenses increased only by 0.9% from EUR 3,816.8
million to EUR 3,850.9 million. As a result, operating result decreased
to EUR 3,627.6 million (2010: EUR 3,786.8 million). The cost/income
ratio stood at 51.5% (2010: 50.2%).
- Risk costs were up 12.2% from EUR 2,021.0 million (155 basis points of
average customer loans) in 2010 to EUR 2.266,9 million, or 168 basis
points, in 2011. This was primarily due to the need for additional risk
provisions in Hungary partly in connection with the policy-makers'
decision to allow premature repayment of foreign-currency loans on
preferential terms. In other core countries (Austria, Czech Republic
and Slovakia) asset quality improved. The NPL ratio as a percentage of
loans to customers rose to 8.5% at 31 December 2011 (year-end 2010:
7.6%). TheNPL coverage ratio improved to 61.0% (year-end 2010: 60.0%).
Further comments:
The figures presented as comparable data in this document are restated
according to IAS 8, for further details see investor release (1-9 2011
results) published on 28 October
2011(www.erstegroup.com/investorrelations).
The term 'net profit/loss for the period after minorities' corresponds to
the term 'net profit/loss for the period attributable to the owners of the
parent'
The term 'net profit/loss for the year after minorities'corresponds to the
term 'net profit/loss for the year attributable to the owners of the
parent'
The term 'shareholders' equity' corresponds to the term 'total equity
attributable to the owners of the parent'.
End of Corporate News
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29.02.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Erste Group Bank AG
Graben 21
1010 Wien
Austria
Phone: +43(0)5 0100 - 10100
Fax: +43(0)5 0100 9 - 10100
E-mail: info(at)erstegroup.com
Internet: www.erstegroup.com
ISIN: AT0000652011
WKN: 909943
Listed: Freiverkehr in Berlin, Hamburg, München, Stuttgart; Open
Market in Frankfurt; Wien (Amtlicher Handel / Official
Market)
End of News DGAP News-Service
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158569 29.02.2012
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Datum: 29.02.2012 - 07:30 Uhr
Sprache: Deutsch
News-ID 119758
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