Brief: Erste Group Raises Financial Outlook For 2025

Erste Bank AG

01/08/2025 06:36

Aug 1 (Reuters) - Erste Group Bank AG ERST.VI:

H1 NET INTEREST INCOME EUR 3.786 MILLION

H1 NET FEE INCOME EUR 1.542 MILLION

H1 CET1 CAPITAL RATIO 17.4%

H1 ROE 16.4%

H1 OPERATING INCOME EUR 5.668 MILLION

H1 OPERATING EXPENSES EUR -2.706 MILLION

H1 NET INCOME EUR 1.665 MILLION

RAISED FINANCIAL OUTLOOK FOR 2025

SAYS CET1 RATIO IS EXPECTED TO FURTHER INCREASE TO ABOVE 18.25%

OUTLOOK 2025: NOW EXPECTS TO ACHIEVE A RETURN ON TANGIBLE EQUITY (ROTE) OF MORE THAN 15% REFLECTING BETTER LOAN VOLUME AND P&L DYNAMICS

IMPAIRMENT RESULT FROM FINANCIAL INSTRUMENTS AMOUNTED TO EUR -182 MILLION OR 16 BASIS POINTS OF AVERAGE GROSS CUSTOMER LOANS

NOW EXPECTS ROBUST LOAN GROWTH OF MORE THAN 5% IN 2025

OUTLOOK 2025: NET INTEREST INCOME IS NOW PROJECTED TO ACTUALLY INCREASE SOMEWHAT IN 2025 (VERSUS REMAIN FLAT)

OUTLOOK 2025: OPERATING RESULT IS EXPECTED BROADLY UNCHANGED TO ONLY SLIGHTLY DOWN VERSUS 2024

OUTLOOK 2025: NET TRADING AND FAIR VALUE RESULT STAYS FLAT VERSUS 2024, AND OPERATING EXPENSES LIKELY RISE IN ORDER OF 5%

OUTLOOK 2025: ASSUMING AN EFFECTIVE GROUP TAX RATE OF ABOUT 21% AND LOWER MINORITY CHARGES COMPARED TO 2024, ALL OF ABOVE SHOULD RESULT IN RETURN ON TANGIBLE EQUITY OF HIGHER THAN 15% IN 2025

FULL-YEAR RISK COSTS GUIDANCE IS TIGHTENED TO ABOUT 20 BASIS POINTS FROM PREVIOUSLY ABOUT 25 BASIS POINTS

Source text: ID:nPexf13hSa

Further company coverage: ERST.VI

 (Gdansk Newsroom)

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