Erste Group delivered strong financial performance in the first quarter of 2025 with notable growth in loans and deposits, improved asset quality, and upgraded fee guidance. However, the increase in operating expenses and higher banking levies present challenges, alongside uncertainty surrounding a potential acquisition in Poland.
Company Guidance
In the Erste Group's First Quarter 2025 Results Conference Call, the management provided key financial metrics and guidance for the year. Despite challenges, the bank reported a robust performance with return on tangible equity surpassing 15% and an efficiency ratio of 48%. Net interest income, while slightly declining quarter-on-quarter due to a day count effect, remained stable, with expectations to remain flat for the year. Fee income was upgraded to grow by more than 5% due to strong performance. Operating expenses increased by 4.8% year-on-year, yet remained aligned with the bank's 5% annual growth target. The CET1 ratio improved to 16.2%, providing strategic flexibility, with management indicating a capital deployment decision by year-end. Risk costs remained low, and the bank maintained its NPL ratio at 2.5%, demonstrating strong asset quality. The potential acquisition of a 49% stake in Santander Bank Polska was discussed, emphasizing strategic growth and shareholder value.
Strong Financial Results
Erste Group reported robust financial results for Q1 2025, with revenues slightly growing year-on-year, driven by core income such as net interest income and fees. Return on tangible equity surpassed the 15% target.
Positive Loan and Deposit Growth
Customer loans grew by 0.9% year-to-date and topped 5% year-on-year for the first time in almost two years. Customer deposits also showed strong growth, with a 1.9% increase year-to-date and 4.6% year-on-year.
Asset Quality Improvement
Asset quality improved with a consolidated NPL ratio reduction to 2.5% and an increase in NPL coverage. The Austrian business saw fewer defaults and lower risk costs.
Upgraded Fee Guidance
The group upgraded its fee growth guidance to more than 5% for 2025, fueled by strong fee income performance, particularly in payments and securities.
Erste Group Bank (EBKOF) Earnings, Revenues Date & History
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The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
EBKOF Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Aug 01, 2025
$89.76
$92.14
+2.65%
Apr 30, 2025
$67.13
$66.09
-1.55%
Feb 28, 2025
$67.74
$64.18
-5.26%
Oct 31, 2024
$48.91
$51.99
+6.30%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Erste Group Bank Ag (EBKOF) report earnings?
Erste Group Bank Ag (EBKOF) is schdueled to report earning on Oct 31, 2025, Before Open (Confirmed).
What is Erste Group Bank Ag (EBKOF) earnings time?
Erste Group Bank Ag (EBKOF) earnings time is at Oct 31, 2025, Before Open (Confirmed).
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