Austria's Erste Group Q1 profit rises 18% on Poland deal

Erste Bank AG

30/04/2026 06:39

Overview

Austria banking group's Q1 net profit rose 18% yr/yr, driven by Erste Bank Polska consolidation

Q1 net interest income and fee income rose sharply on loan growth and Poland contribution

CET1 ratio fell to 14.5% after Poland acquisition, cost/income ratio improved to 45%

Outlook

Erste Group targets 2026 net profit above EUR 4 bln, adjusted for extraordinary items

Company expects 2026 net interest income above EUR 11 bln and fee income around EUR 4 bln

Cost/income ratio projected to improve to about 45% in 2026; risk costs seen at 25-30 bps

Result Drivers

POLAND CONSOLIDATION - First-time consolidation of Erste Bank Polska drove large increases in net interest income, fee income, and operating expenses

LOAN GROWTH - Loan growth in Slovakia, the Czech Republic, Hungary, and Poland contributed to higher net interest income

HIGHER IMPAIRMENT CHARGES - Impairment result rose due to provisions for the Polish loan portfolio required under IFRS 9

Company press release: ID:nPex3kTVqa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
EUR 879 mln
Q1 Net Interest Income
EUR 2.67 bln
Q1 CET1 Capital Ratio
14.50%
Q1 Net Fee Income
EUR 965 mln
Q1 Operating Expenses
-EUR 1.77 bln
Q1 Operating income
EUR 3.94 bln
Q1 ROE
18.10%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Erste Group Bank AG is €107.00, about 6.6% above its April 29 closing price of €100.40

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)