Q3 2024 Erste Group Bank AG Earnings Call Transcript
Key Points
- Erste Group Bank AG. (EBKDY) reported outstanding financial performance in Q3 2024, with revenues growing across the board and a return on tangible equity nearing 20%.
- Net interest income held up well, particularly in Central and Eastern European operations, contributing to a strong year-to-date performance.
- The bank surpassed EUR 2.5 billion in net profit for the first nine months of 2024, equating to a return on tangible equity of almost 18%.
- Erste Group Bank AG. (EBKDY) upgraded its 2024 financial guidance, expecting net interest income to grow by more than 2% and a cost-income ratio of about 48% or less.
- Asset management reached an all-time high with EUR 83.9 billion in assets under management, supported by strong sales in the Czech Republic.
- Risk costs were higher than in the second quarter, primarily due to new defaults in the Austrian real estate sector.
- Loan demand, particularly in Austria, was weaker than expected due to a slightly weaker economic performance.
- The economic forecast for Austria was revised downwards, projecting a shallow recession to continue into 2024.
- The shift from current accounts to term deposits has almost stopped, indicating potential challenges in deposit growth.
- The bank's capital position remained flat year-to-date, with the CET1 ratio hardly moving due to business growth and distributions.
Welcome to the third quarter, 2024 results conference call of first group. My name is Sergei and I'll be your coordinator today. Throughout today's recorded presentation, all participants will be on listen-only mode later, we will conduct a Q&A session. You may register for a question at any time by pressing star one on your telephone keypad. At this time. I'd like to hand the call over to Mr Thomas Samara. Please go ahead, sir.
Thank you very much Sergei and good morning to everybody who is listening in from Vienna. Today's call will be hosted as usual by Peter Bosek CEO of Air, the group, Stefan de CFO of the group and Alexander HLA Dr Cr of the group. They will lead you through a brief presentation highlighting the achievements of the past quarter after which they are ready to take your questions before handing over to Peter. My usual pinpointing of the disclaimer on page 2 management will make forward-looking statements of course during this presentation and the disclaimer applies
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
