Erste Group - Full-year preliminary results 2017

Net interest income declined to EUR 4,353.2 million (-0.5%; EUR 4,374.5 million) despite lending growth, mostly due to lower interest income from the government bond portfolio and a lower unwinding effect. Net fee and commission income increased to EUR 1,851.6 million (+3.8%; EUR 1,783.0 million). Income from the securities business, from asset management and from brokerage was up substantially, while income from the lending business declined. Net trading result decreased significantly to EUR 222.8 million (-21.5%; EUR 283.8 million). Operating income was nearly stable at EUR 6,669.0 million (-0.3%; EUR 6,691.2 million). General administrative expenses rose to EUR 4,158.2 million (+3.2%; EUR 4,028.2 million). This was attributable to an increase in other administrative expenses and in depreciation and amortisation (+6.0% and +1.5%, respectively) as well as higher personnel expenses of EUR 2,388.6 million (+2.1%; EUR 2,339.3 million). This line item also included deposit insurance payments in the amount of EUR 82.2 million (EUR 88.8 million). Consequently, the operating result decreased to EUR 2,510.8 million (-5.7%; EUR 2,663.0 million). The cost/income ratio rose to 62.4% (60.2%).

Full press release (ENG)