Vienna, April 30, 2024 – Austrian banking group Erste Group delivered a strong first quarter, showcasing impressive growth. Its net profit surged by nearly a third to €594 million compared to the same period last year. Loan volumes remained almost unchanged, while total customer deposits edged higher, the company announced on Tuesday.
Erste Group expects low credit defaults and a return on equity of around 15% for 2024, driven by favorable economic conditions. The cost-income ratio improved from 49.7% to 46.0%. Net interest income rose by 4.7% to €1.85 billion, while net fee and commission income increased by 10.8% to €712 million.
The group anticipates its CET 1 capital ratio to remain at a high level in 2024, enabling it to pursue a flexible approach to share buybacks, dividend payments, and M&A activities. The bank has already planned a €500 million share buyback for this year.
Key Highlights:
- Net profit jumps 33% to €594 million in Q1.
- Loan volumes remain stable, while customer deposits show slight growth.
- Low credit defaults and 15% return on equity expected for 2024.
- Cost-income ratio improves to 46.0%.
- Net interest income up 4.7% to €1.85 billion.
- Net fee and commission income rises 10.8% to €712 million.
- CET 1 capital ratio to remain strong, enabling flexible share buybacks, dividends, and M&A.
- €500 million share buyback planned for 2024.
Source: IR News 30.04.2024 – Erste Group Q1 2024 results
