DGAP-News: Erste Group Bank AG: Erste Group posts net profit of EUR 737 million in the first three quarters of 2010 on strong operating income, strict cost control
(firmenpresse) - Erste Group Bank AG / Key word(s): Quarter Results/Quarter Results
29.10.2010 07:30
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Vienna, 29 October 2010?
Erste Group posts net profit of EUR 737 million in the first three quarters
of 2010 on strong operating income, strict cost control
Highlights:
Erste Group sustained its strong performance of the previous quarters and
posted an excellent operating result of EUR 3,028.4 million in the first
three quarters of 2010, up 9.1% on the corresponding period of 2009. Net
profit rose by 2.3% to EUR 736.8 million in the first nine months of 2010.
The cost/income ratio improved to 48.7%, from 50.9% in the first three
quarters of 2009.
The operating result was driven by record operating income, which rose by
4.3% to EUR 5,900.1 million, and a decline in operating expenses, which
fell by 0.3% to EUR 2,871.7 million. Net interest income grew by 6.1% to
EUR 4,075.5 million on the back of an improving net interest margin, which
rose to 3.08%, from 2.98% in the first three quarters of 2009. Net
commission income performed strongly, growing by 9.7% to EUR 1,440.7
million in the first nine months of 2010, due to increased fees from
securities business and payment transfers. The net trading result declined
by 23.7% to EUR 383.9 million compared to an exceptional result in the
first three quarters of 2009.
Risk costs increased by 9.6% to EUR 1,588.4 million or 162 basis points of
average customer loans (1-9 09: EUR 1,449.2 million and 152 bps,
respectively), confirming the significant deceleration in the growth rate
already seen in the previous quarters.
Following strong deceleration in NPL growth seen in the second half of
2009, quarterly new NPL formation in the first nine months of 2010 remained
at this lower level. As a result, the NPL ratio in relation to customer
loans reached 7.6%, following 6.6% at 31 December 2009. The NPL coverage
ratio improved significantly to 60.9%, compared to 57.2% at 31 December
2009.
Net profit after minorities * advanced by 2.3%, from EUR 720.1 million to
EUR 736.8 million in the first three quarters of 2010, as the record
operating result was offset by a weaker other operating result and
increased net profit attributable to minorities. Cash return on equity
decreased from 10.7% to 7.8% as a result of the significantly enlarged
capital base.
Total assets increased by 2.4% year-to-date to EUR 206.5 billion. This was
mainly due to solid growth in customer deposits (+2.9% year-to-date to EUR
115.3 billion), which drove interbank and financial asset volumes higher.
The loan-to-deposit ratio was 114.0% (year-end 2009: 115.3%).
Erste Group's shareholders equity** continued to improve in the first
nine months of 2010, driven by rising quarterly earnings and a positive
change in the AfS reserve. In the first three quarters of 2010, Erste
Group's equity therefore rose by EUR 0.7 billion to EUR 13.4 billion.
Alongside stagnant loan volumes, total risk-weighted assets declined from
EUR 123.9 billion at year-end 2009 to EUR 121.7 billion. Prior to the
inclusion of retained earnings, this resulted in a tier 1 ratio (total
risk) of 9.7%, compared to 9.2% at year-end 2009 and a core tier 1 ratio
(total risk) of 8.7%, up from 8.3% at year-end 2009.
*The term net profit after minoritiescorresponds to the term net profit
attributable to owners of the parent.
** The term shareholders' equity corresponds to the term total equity
attributable to owners of the parent.
29.10.2010 07:30 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: Erste Group Bank AG
Graben 21
1010 WienÖsterreich
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 Hamburg, München, Berlin, Stuttgart; Open
Market in Frankfurt; Foreign Exchange(s) Wien (Amtlicher
Handel / Official Market)
End of Announcement DGAP News-Service
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Datum: 29.10.2010 - 07:30 Uhr
Sprache: Deutsch
News-ID 32441
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Kategorie:
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