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Erste Group Bank AG (EBKDY)
:EBKDY
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Erste Group Bank AG
(OTC:EBKDY)
77Outperform
Erste Group Bank AG (EBKDY) vs. S&P 500 (SPY)
Market Cap
$28.05B
Dividend Yield2.88%
Average Volume (3M)2.03K
Price to Earnings (P/E)9.0
Beta (1Y)0.71
Revenue Growth9.59%
EPS Growth17.05%
CountryUS
Employees41,043
SectorFinancial
Sector Strength78
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.00
Shares Outstanding821,028,750
10 Day Avg. Volume6,090
30 Day Avg. Volume2,030
Financial Highlights & Ratios
PEG Ratio2.16
Price to Book (P/B)N/A
Price to Sales (P/S)1.66
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Erste Group Bank AG Business Overview & Revenue Model
Company DescriptionErste Group Bank AG provides a range of banking and other financial services to retail, corporate, real estate, and public sector customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management & Local Corporate Center, Savings Banks, and Group Corporate Center segments. It provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. The company also offers factoring and accounts receivable purchasing; investment, acquisition and leveraged, project, and commercial real estate finance; interest rate and currency hedging, letters of credit, documentary collections, and guarantees; account management, payments, digital-banking, and cash logistics services; equity interests and investments, revolving export credits lines, customer financing, and export guarantee; and loan syndication, and debt and equity capital market services. In addition, it provides cash management, trade finance, customer referral, markets execution, and custody and brokerage services. Further, the company offers corporate finance; portfolio management; trading and market; trade execution, market making, and short-term liquidity management; and asset/liability management services, as well as working capital and bridge loans. As of December 31, 2021, it operated 2,091 branches. The company was founded in 1819 and is headquartered in Vienna, Austria.
How the Company Makes MoneyErste Group Bank AG generates revenue primarily through its core banking activities. Retail banking is a significant source of income, with the bank earning interest on loans and mortgages provided to individual customers. Corporate banking also contributes substantially, with revenue coming from loans, credit services, and financial advisory for businesses. Additionally, the bank earns fees and commissions from asset management, insurance products, and transactional services. Erste Group's strategic partnerships and its regional focus further enhance its ability to capture market opportunities and drive profitability. The bank's investment banking operations, including trading and underwriting services, also play a role in its overall earnings.
Erste Group Bank AG Financial Statement Overview
Summary
Erste Group Bank AG shows a robust financial profile with strong revenue growth and profitability metrics. The balance sheet is stable with prudent leverage, and cash flows are effectively managed, though some historical volatility is noted. Continued focus on operational efficiencies and cash flow stability is recommended.Income Statement
The company has demonstrated strong revenue growth with a TTM revenue increase from the previous year. Gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. However, the EBITDA margin is relatively low, suggesting limited operational efficiency improvements.82
Very Positive
Balance Sheet
Erste Group Bank AG exhibits a strong balance sheet with a healthy equity ratio, suggesting stability and financial resilience. The debt-to-equity ratio is manageable, highlighting prudent leverage levels. Return on equity is robust, indicating effective use of shareholder equity to generate profits.88
Very Positive
Cash Flow
The cash flow statement reflects a solid operating cash flow to net income ratio, showcasing effective cash generation. Free cash flow growth is positive, but historical fluctuations in cash flow suggest potential volatility. The free cash flow to net income ratio is strong, indicating good cash conversion from profits.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 19.99B | 10.29B | 8.39B | 7.60B | 7.16B | 7.26B | Gross Profit |
| 19.58B | 33.67B | 8.39B | 7.60B | 7.16B | 7.26B | EBIT |
| 7.97B | 5.27B | 7.97B | 2.45B | 1.13B | 1.89B | EBITDA |
| 4.23B | 0.00 | 3.57B | 3.29B | 1.72B | 2.69B | Net Income Common Stockholders |
| 3.20B | 3.00B | 2.17B | 1.92B | 783.10M | 1.47B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 66.09B | 31.51B | 35.68B | 61.92B | 52.60B | 26.80B | Total Assets |
| 342.92B | 337.15B | 323.87B | 307.43B | 277.39B | 245.69B | Total Debt |
| 38.95B | 69.75B | 36.57B | 32.72B | 31.24B | 30.89B | Net Debt |
| -27.15B | 18.32B | -12.63B | -29.21B | -21.37B | 4.08B | Total Liabilities |
| 38.95B | 308.65B | 298.56B | 32.72B | 31.24B | 30.89B | Stockholders Equity |
| 20.29B | 21.65B | 19.35B | 18.00B | 17.34B | 15.62B |
| Cash Flow | Free Cash Flow | ||||
| 3.94B | 2.06B | -9.29B | 10.86B | 23.94B | -6.79B | Operating Cash Flow |
| 4.56B | 2.59B | -8.82B | 11.40B | 24.49B | -6.19B | Investing Cash Flow |
| -16.47B | -599.00M | -233.10M | -483.40M | -351.60M | -433.00M | Financing Cash Flow |
| 4.02B | 2.66B | 8.12B | -1.31B | 1.13B | -197.00M |
Erste Group Bank AG Technical Analysis
Positive
34.99
Price Trends
34.73
Positive
32.44
Positive
29.47
Positive
Market Momentum
-0.19
Negative
53.43
Neutral
96.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBKDY, the sentiment is Positive. The current price of 34.99 is above the 20-day moving average (MA) of 34.27, above the 50-day MA of 34.73, and above the 200-day MA of 29.47, indicating a bullish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 96.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBKDY.
Erste Group Bank AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $28.05B | 8.99 | 15.29% | 2.88% | 9.59% | 17.05% | |
76 Outperform | $19.97B | 10.52 | 10.30% | 4.54% | 7.89% | 17.47% | |
75 Outperform | $23.09B | 9.07 | 12.77% | 0.42% | 18.05% | -75.88% | |
73 Outperform | $22.82B | 10.85 | 11.71% | 4.28% | 6.12% | 0.68% | |
68 Neutral | $17.48B | 9.33 | 11.33% | 5.13% | 1.23% | 12.14% | |
66 Neutral | $25.95B | 10.79 | 9.39% | 3.37% | 1.41% | 1.12% | |
63 Neutral | $12.00B | 9.27 | 8.14% | 79.61% | 12.85% | -5.12% |
* Financial Sector Average
Performance Comparison
EBKDY
Erste Group Bank AG
34.99
13.13
60.06%
FITB
Fifth Third Bancorp
34.15
-1.08
-3.07%
FCNCA
First Citizens BancShares
1,716.62
99.67
6.16%
HBAN
Huntington Bancshares
13.67
0.71
5.48%
MTB
M&T Bank
160.23
18.86
13.34%
RF
Regions Financial
19.31
0.94
5.12%
Erste Group Bank AG Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -3.05% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record NII and asset management growth, alongside improvements in financial guidance. However, challenges remain in the Austrian market, particularly in the real estate sector and economic performance. Overall, the sentiment is cautiously optimistic with significant achievements but some regional challenges.Highlights
Record Net Interest Income (NII)
Achieved a record NII with growth across the board, particularly strong in Central and Eastern European operations. NII is expected to grow by more than 2% in 2024.
Strong Return on Tangible Equity
Return on tangible equity reached almost 20% in Q3 2024, with a year-to-date return of nearly 18%.
Asset Management Growth
Assets under management reached an all-time high of EUR 83.9 billion, driven by strong net sales, especially in the Czech Republic.
Improved Financial Guidance
Upgraded financial outlook for 2024, with expectations of a cost-income ratio of around 48% or less and return on tangible equity topping 16%.
Fee Income Growth
Fee income increased by almost 11% year-on-year, driven by higher transaction volumes and increased card revenues.
Lowlights
Austrian Real Estate Sector Concerns
Continued defaults in the Austrian real estate sector, particularly affecting residential real estate, with expectations of similar trends in 2025.
Slower Loan Demand in Austria
Loan demand in Austria improved but remained weaker than expected due to a slightly weaker economic performance.
Economic Challenges in Austria
The economic forecast for Austria predicts a continuation of a shallow recession into 2024, impacting loan demand and economic performance.
Risk Costs in Austria
Risk costs are primarily an Austrian issue, with continued new defaults in the real estate sector.
Company Guidance
During the Q3 2024 earnings call for Erste Group, the management provided an optimistic update on their financial guidance. Key metrics included a record net interest income (NII) for the quarter, driving revenue growth alongside strong fee income, particularly in Central and Eastern Europe. The company upgraded its 2024 NII growth forecast to over 2%, with a cost growth guidance of about 5%, resulting in a projected cost-income ratio of approximately 48% or lower. Return on tangible equity (ROTE) is expected to exceed 16%, up from the previous guidance of 15%. The loan growth target for 2024 remains close to 5%, supported by improved demand in retail and corporate segments, particularly in the Czech Republic, although Austrian performance lagged. Risk costs were managed effectively, remaining below 20 basis points, and asset quality was maintained with a stable NPL ratio of 2.4%. The management expressed confidence in the operating environment, expecting moderate risk costs and continued growth in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.