Erste Group Revenues Increased in the First 9 Months

The Austrian Erste Group's revenues increased, but its net profit rose only slightly in the first three quarters due to higher bank levies, the bank told MTI on Friday.

The Erste Group performed well in the first nine months of 2025. Despite falling interest rates in its primary markets, net interest income rose by 3% to EUR 5.76 billion in the first three quarters, mainly due to strong growth in the retail and corporate segments, the bank said. The loan portfolio grew by 4.5%, or nearly EUR 10 billion, compared to the end of the previous year, to EUR 228.0 billion, mainly due to growing demand in the Czech Republic, Austria, and Slovakia. In addition, mortgage loans gained momentum in all markets in the third quarter.

Deposits grew by 2.5% to EUR 247.8 billion in the first nine months. Net fee and commission income rose by 8.4% to EUR 2.34 billion, with the securities business showing particularly strong growth in Austria and Hungary, they said.

Operating income rose by 3.2% to EUR 8.59 billion in the first three quarters, driven by an increase in the customer base.

Operating profit remained stable at EUR 4.52 billion, with a modest increase of 0.2%. This was due to inflation-related increases in personnel costs and continued IT investments, the bank said. The cost-to-income ratio was 47.4%, which remained below the target of 50%.

According to the announcement, special bank taxes rose by 46.6% on an annual basis, reaching EUR 283.9 million, mainly due to a significant increase in the Austrian bank tax. Of the special bank taxes, EUR 141 million (EUR 137 million in the previous year) was related to Hungary. In Austria, the bank tax increased to EUR 102 million from EUR 30 million due to a temporary tax increase, while in Romania it was EUR 41 million (after EUR 27 million). The EUR 50 million bank tax in Slovakia, following EUR 74 million in the previous year, is included in the income tax line, they said.

The Erste Group achieved a net profit of EUR 2.57 billion in the first three quarters of 2025, representing a 2% increase.

They noted that based on the first three quarters, the Erste Group has again improved its financial outlook for 2025: due to the favorable interest rate environment and strong growth in the customer base, the forecast for net interest income has been raised, and growth of more than 2% is now expected, compared to the previous slight increase. Fee and commission income may grow at a rate of over 5%, while operating costs are expected to rise by around 5%. The group continues to expect strong loan growth of around 5% in 2025, they said.