EBKDY Ersta Group Bank AG (PK)

   By Joshua Kirby 
 

Erste Group Bank AG said Monday that earnings rose sharply in 2021 thanks to higher fees and lower risk costs, and that it expects continued growth this year.

Net profit at the Austrian lender last year came to 1.92 billion euros ($2.16 billion,) rising from EUR783.1 million in 2020 when earnings were hit by provisions relating to the coronavirus pandemic.

Operating income rose 8.2% to EUR7.74 billion, as net interest income increased 4.2% to EUR4.98 billion and net fee and commission income surged 17% to EUR2.30 billion.

Risk costs fell sharply to EUR158.8 million from more than EUR1 billion in 2020, Erste Group said.

The bank said it doesn't anticipate any risk provisioning from the crisis in Russia and Ukraine, where it has no operating presence. Nevertheless, it noted the "incalculable" wider effects of the situation and said it couldn't rule out any indirect impact on its customers.

Erste expects net loan growth in the mid-single digits in 2022, along with an increase in net fee and commission income in the low-to-mid single digits. The bank also expects a double digit return on tangible equity, as in 2021, and continued strength in its common equity Tier 1 ratio.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

February 28, 2022 02:09 ET (07:09 GMT)

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