Erste Group Profit Rises on Higher Net Interest Income

   By Ed Frankl 
 

Erste Group Bank AG said Monday that its first-half profit grew as it took advantage of increasing net interest income on the back of on solid loan growth.

The Austrian lender's net profit came to 1.14 billion euros ($1.17 billion) in the six months to the end of June, up from EUR918 in the same period last year.

Net interest income rose to EUR2.84 billion, from EUR2.45 billion in 1H 2021, helped by interest-rate increases in Czech Republic, Hungary and Romania, said the bank, which focuses on central and eastern Europe.

Loan volume growth rose 6.3% to EUR191.5 million, while its operating result grew 10% to EUR1.86 billion, Erste said.

Erste said it now expects net loan growth in the high single-digit percentage range for the full year. At its first-quarter earnings, it said it expected growth in the mid-single digits.

It kept its full-year guidance for double-digit return on tangible equity, though its outlook was based on the assumption that its core markets could import adequate quantities of gas from Russia this year.

The Vienna-based company added that it planned to pay a dividend of EUR1.90 a share in 2022.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

August 01, 2022 02:13 ET (06:13 GMT)

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