Erste Group Bank AG

Q1 15 net profit of EUR 226 million amid robust CEE business environment; outlook for 2015 confirmed - Seite 2

Taxes on income rose to EUR 118.6 million. This rise is primarily due to improved profitability and the assumption that contributions to resolution funds will not be tax-deductible. The net result attributable to owners of the parent increased to EUR 225.8 million (EUR 103.3 million).

Total capital rose to EUR 14.0 billion (EUR 13.4 billion). Common equity tier 1 capital (CET 1, Basel 3 phased-in) edged up to EUR 10.7 billion (EUR 10.6 billion). Total risk (risk-weighted assets including credit, market and operational risk, Basel 3 phased-in) increased to EUR 101.8 billion (EUR 100.6 billion). The common equity tier 1 ratio (CET 1, Basel 3 phased-in) stood at 10.5% (10.6%), the total capital ratio (Basel 3 phased-in) at 15.8% (15.7%).

Total assets rose to EUR 202.6 billion (EUR 196.3 billion), driven mainly by an increase in loan volume - with loans and receivables to customers (net) rising to EUR 123.4 billion (EUR 120.8 billion) - as well as in trading and investment securities and loans and receivables to credit institutions (net). Within liabilities, customer deposits increased to EUR 124.8 billion (EUR 122.6 billion). The loan-to-deposit ratio stood at 98.9% (98.6%).

Outlook Operating environment anticipated to be conducive to credit expansion. Real GDP growth is expected to be between 2% and 3% in all major CEE markets, except Croatia, driven by solid domestic demand. For Austria, a real GDP growth below 1% is forecast.

Return on tangible equity (ROTE) expected at 8-10% in 2015 (YE 14 TE: EUR 8.4 billion). Operating result is expected to decline in the mid-single digits on the back of lower but sustainable operating results in Hungary (due to FX conversion related effects of lower average volume) and Romania (lower unwinding impact) as well as the persistent low interest rate environment.

For 2015, loan growth in the low single digits and a decline in risk costs to about EUR 1.0-1.2 billion are anticipated. Banking levies are expected to amount to about EUR 360 million in 2015, including parallel contributions to national as well as European bank resolution and deposit insurance funds. Related discussions with the Austrian government are still ongoing.

Risks to guidance. Consumer protection initiatives as well as geopolitical risks could have negative economic impacts.

! For table with financial data please see pdf



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emitter: Erste Group Bank AG address: Milchgasse 1, 1010 Wien country: Austria contact person: Thomas Sommerauer/ Simone Pilz phone: + 43 (0)5 0100 - 17741 e-mail: [e-mail] website: www.erstegroup.com

ISIN(s): AT0000652011 (share) stock exchanges: official trade in Vienna

[ source: http://www.pressetext.com/news/20150507009 ]