DGAP-News: Erste Group Bank AG: Erste Group increases 2010 net profit by 12.4% to EUR 1,015.4 million on strong operating result and lower risk costs
(firmenpresse) - DGAP-News: Erste Group Bank AG / Key word(s): Preliminary
Results/Preliminary Results
Erste Group Bank AG: Erste Group increases 2010 net profit by 12.4% to
EUR 1,015.4 million on strong operating result and lower risk costs
25.02.2011 / 07:29
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Erste Group increases 2010 net profit by 12.4% to EUR 1,015.4 million on
strong operating result and lower risk costs
Highlights:
Erste Group posted its best ever operating result at EUR 3,987.9 million in
2010 (+5.7% compared to 2009). Record operating income of EUR 7,804.7
million (+3.0% on the previous year) and stable operating expenses of EUR
3,816.8 million (+0.2% vs. 2009) contributed to this success.
Correspondingly, the cost/income ratio continued to improve from 50.2% to
48.9% in 2010.
The positive trend in net interest income and net commission income more
than offset the decline in the net trading result. A rise in
interest-bearing assets underpinned the 3.7% rise in net interest income to
EUR 5,412.5 million. Most notably, net commission income increased by a
significant 9.2% to EUR 1,936.0 million in 2010 due to higher fees from
securities business and payment transfers. Following the exceptionally
strong performance in 2009, the net trading result expectedly declined by
22.0% to EUR 456.2 million.
Risk costs declined in 2010 by 1.2% to EUR 2,031.2 million or 155 basis
points of average customer loans (2009: EUR 2,056.6 million or 161 basis
points). Despite the notable reduction in new NPL formation compared to
2009, the NPL ratio based on customer loans increased from 6.6% to 7.6% in
2010. Compared to the previous quarter, the NPL ratio remained stable for
the first time since Q2 08.The NPL coverage ratio improved to 60.0% from
57.2% as at 31 December 2009.
Net profit after minorities * rose by 12.4%, from EUR 903.4 million to EUR
1,015.4 million in 2010 despite the negative impact of items such as the
Hungarian banking tax, which amounted to EUR 49.8 million (pre-tax) in
2010. Cash return on equity decreased from 9.7% to 8.2% as a result of the
significantly enlarged capital base.
Total assets grew by 2.1% to EUR 205.9 billion in 2010. Customer business
gained in importance on the asset as well as the liability side: as a
result of exchange rate volatility customer loans grew by 2.8% to EUR 132.7
billion (year-end 2009: EUR 129.1 billion), while customer deposits rose to
EUR 117.0 billion (+4.4% vs. EUR 112.0 billion at year-end 2009). The
loan-to-deposit ratio improved to 113.4% (year-end 2009: 115.3%). Deposits
by banks continued to decline significantly, falling by 23.4% to EUR 20.2
billion and reflecting the diminishing importance of wholesale short-term
funding.
Erste Group's capital base continued to improve in 2010, driven in
particular by rising profitability. In 2010 shareholders' equity ** rose by
6.9% to EUR 13.6 billion compared to year-end 2009. Alongside stagnant loan
volumes, total risk-weighted assets declined from EUR 123.9 billion at
year-end 2009 to EUR 119.8 billion. This resulted in a Tier 1 ratio (total
risk) of 10.2% (year-end 2009: 9.2%) and a core Tier 1 ratio (total risk)
of 9.2%, up from 8.3% at year-end 2009.
As a result of solid profitability, the management board of Erste Group
will propose an unchanged dividend of EUR 0.65 (2009: EUR 0.65) to the
Annual General Meeting on 12 May 2011.
*The term net profit after minorities corresponds 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.
End of Corporate News
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25.02.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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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 Berlin, Hamburg, München, Stuttgart; Open
Market in Frankfurt; Wien (Amtlicher Handel / Official
Market)
End of News DGAP News-Service
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113457 25.02.2011
Datum: 25.02.2011 - 07:29 Uhr
Sprache: Deutsch
News-ID 33302
Anzahl Zeichen: 0
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Kategorie:
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