DGAP-News: Erste Group Bank AG: Erste Group increases net profit by 5.2% to EUR 496.3 million in first half of 2011
(firmenpresse) - DGAP-News: Erste Group Bank AG / Key word(s): Half Year Results/Half
Year Results
Erste Group Bank AG: Erste Group increases net profit by 5.2% to EUR
496.3 million in first half of 2011
29.07.2011 / 07:30
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Erste Group increases net profit by 5.2% to EUR 496.3 million in first half
of 2011
Highlights:
Erste Group posted stable operating income for the first half of 2011: net
interest income totalled EUR 2,689.8 million (H1 2010: EUR 2,684.8
million), supported by record quarterly net interest income of EUR 1,394.1
million in Q2 2011. Net commission income of EUR 954.9 million declined
only marginally compared with the good performance of EUR 965.0 million in
H1 2010. The net trading result improved from EUR 240.0 million to EUR
248.7 million (+3.6% compared to H1 2010).
Despite rising inflation operating expenses rose by only 1.5% to EUR
1,926.3 million in the first half of 2011. The recorded operating result
was EUR 1,967.1 million, down slightly (-1.2%) compared to H1 2010.
Reflecting continuing cost discipline, this resulted in a cost/income ratio
of 49.5% (H1 2010: 48.8%).
Risk costs declined by 13.3% from EUR 1,084.2 million (167 basis points of
average customer loans) in H1 2010 to EUR 940.0 million, or 141 bps, in the
first half of 2011. While credit quality improved significantly in the
Czech Republic, Slovakia and Austria, it continued to be under pressure in
markets with slower economic recovery like Hungary and Romania. The NPL
ratio in relation to customer loans increased to 7.9% at the end of the
first half of 2011 (at 31 December 2010: 7.6%). The NPL coverage ratio
improved to 60.6%, compared to 60.0% at year-end 2010.
Net profit after minorities * rose to EUR 496.3 million for the first half
of 2011. That was up 5.2% year on year, mainly due to the solid operating
result and lower risk costs. The bottom line was burdened by additional
charges of EUR 95.6 million (pre-tax) for banking taxes in Austria and
Hungary.
Total assets were up by 4.0% from EUR 205.9 billion to EUR 214.2 billion.
The loan-to-deposit ratio improved from 113.4% at 31 December 2010 to
111.0% at 30 June 2011. While customer deposits continued to increase
(+3.2% to EUR 120.8 billion), loan demand remained subdued. Deposits
developed particularly well in Austria and in the Czech Republic, while
loan business performed best in Slovakia.
Erste Group,s shareholders equity ** increased to EUR 13.9 billion
(year-end 2010: EUR 13.6 billion), and core tier 1 capital to EUR 11.4
billion (year-end 2010: EUR 11.0 billion). As loan growth picked up only
slowly, risk-weighted assets remained almost flat at EUR 119.7 billion
compared to year-end 2010. Prior to the inclusion of retained earnings,
this resulted in a tier 1 ratio (total risk) of 10.5%, compared to 10.2% at
year-end 2010, and a core tier 1 ratio (total risk) of 9.5% (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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29.07.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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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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133664 29.07.2011
Datum: 29.07.2011 - 07:30 Uhr
Sprache: Deutsch
News-ID 39240
Anzahl Zeichen: 0
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Kategorie:
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