DGAP-News: Erste Group Bank AG: Erste Group increases Q1 2011 net profit to EUR 260.6 million on lower risk costs, despite negative impact from banking taxes
(firmenpresse) - DGAP-News: Erste Group Bank AG / Key word(s): Quarter Results/Quarter
Results
Erste Group Bank AG: Erste Group increases Q1 2011 net profit to EUR
260.6 million on lower risk costs, despite negative impact from
banking taxes
28.04.2011 / 07:31
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Highlights:
Net interest income amounted to EUR 1,295.7 million in the first quarter
2011 (-2.1% versus Q1 2010). This was in part due to a slight decrease in
the net interest margin to 2.88% (versus 3.03% in Q1 2010), which was
attributable to a marginally changed balance sheet structure, as well as
continued low market interest rates.
Net commission income grew by 2.1% to EUR 481.2 million in the first
quarter of 2011, driven by increased fees from securities business and
payment transfers.
The net trading result remained flat at EUR 139.7 million (-1.1%).
Operating expenses: On the back of ongoing tight cost control and despite
rising inflation, operating expenses remained stable in the first quarter
2011 at EUR 963.0 million (+1.0%, currency-adjusted +0.3%). This resulted
in a cost/income ratio of 50.2% (compared to 49.2% in Q1 2010).
Risk costs declined by 13.4% from EUR 531.2 million (164 basis points of
average customer loans) in Q1 2010 to EUR 460.1 million or 138 bps,
respectively, in the first quarter of 2011. This development was primarily
due to the gradual economic recovery?albeit at different pace in various
countries?in Central and Eastern Europe. The NPL ratio in relation to
customer loans remained stable at 7.7% at the end of the first quarter of
2011 (year-end 2010: 7.6%). The NPL coverage ratio improved to 61.4%,
compared to 60.0% at year-end 2010.
Net profit after minorities * rose to EUR 260.6 million in the first
quarter of 2011, up 2.1% year-on-year. In light of the extraordinary
charges of EUR 47.9 million (pre-tax) for banking taxes in Austria and
Hungary, this was a very satisfactory performance.
The loan-to-deposit ratio continued to improve, 111.4% at 31 March 2011 (31
December 2010: 113.4%), driven by increased customer deposits (+1.9% to EUR
119.2 billion) with loan demand remaining subdued. Otherwise, the growth in
total assets, up 3.7% to EUR 213.5 billion, was principally related to
higher interbank business volumes in the first quarter of 2011.
Erste Group s shareholders equity ** improved further in the first quarter
2011 to EUR 14.1 billion, mainly due to the increased net profit. In line
with the still moderate loan growth, risk-weighted assets remained flat at
EUR 119.8 billion versus year-end 2010. Prior to the inclusion of retained
earnings, this resulted in a tier 1 ratio (total risk) of 10.4%, compared
to 10.2% at year-end 2010 and a core tier 1 ratio (total risk) of 9.4%
(year-end 2010: 9.2%).
* 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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28.04.2011 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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121741 28.04.2011
Datum: 28.04.2011 - 07:31 Uhr
Sprache: Deutsch
News-ID 33886
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Kategorie:
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