Erste Group's Operating Profit Increased Last Year

Erste Group achieved an operating profit of EUR 5.5 billion in 2023, up 38% year-on-year, according to a preliminary profit outlook, the company said on its website on Thursday.

The cost/income ratio improved to 47.6% from 53.4% as operating income growth outpaced operating expenses. Loans rose 2.8% year-on-year from EUR 202.1 billion to EUR 207.8 billion.

Customer deposits also increased in all primary markets, particularly in Austria and the Czech Republic, to EUR 232.8 billion, an increase of 3.9%.

Net interest income (NII) increased by 21.5% to €7.228 billion, with the strongest growth in Austria, driven by higher market interest rates and a larger loan book.

Net fee and commission income rose by 7.6% to €2.640 billion. Growth was recorded in all primary markets, mostly in payment services, but also in asset management and lending.

The amount of bank tax currently payable in the two primary markets fell to EUR 183 million (from EUR 187 million), of which EUR 137 million was levied in Hungary (down from EUR 124 million in the previous year). In Austria, bank tax fell to EUR 46 million (from EUR 63 million). In addition, revaluation effects had a negative impact on other operating income.

Within the Erste Group, around ten million customers use the George digital platform and one in two product sales in the retail segment were digital.

Economists expect real GDP growth in Erste Group's core markets to improve this year. Inflationary pressures are expected to continue on a downward trend in 2024. And a continued strong labor market will support economic performance in all Erste Group markets.