Erste - Better Results, Guidance Upgrade For 2023 Already In Q1
Better results, guidance upgrade for 2023 already in Q1
Erste’s reported net income came to EUR 594 mln, ahead of the consensus ad
our estimate by 9% and 11%, respectively. The beat came from higher than
anticipated NII and fees while risk cost was also a positive line in the quarter
on provision releases.
Net interest income grew 27% y-o-y and 13% q-o-q but again, adjusted for
TLTRO negative in Q4, the improvement was lower though still strong. (+5% qo-q). On a geographical breakdown, Hungarian and Austrian NII were
impressive compensating for lower interest income in CZ. Net F&C grew 3% qo-q thanks to rising securities fees and continued stabilization of asset mgmt
fees.
OPEX grew 1% y-o-y only, as last year Sberbank deposit insurance cost
weighed on expenses. Adjusted for that OPEX went up by 6.5%, within the
range of Erste’s expectations.
Risk cost was a positive EUR 21 mln in Q1 23, marked by recoveries in Austria,
Romania and Slovakia. NPL ratio was rather stable at 2.1% with coverage of
94%.
Erste Group is a financial services provider based in Austria. As of Dec 31 2015, Co.'s total assets amounted to Euro199,743 million and the number of customers was approximately 16.5 million. Co.'s key business is the retail business, covering the entire spectrum from lending, deposit and investment products to current accounts and credit cards. In addition to providing financial services to private individuals, Co.'s core activities also include advisory services and support for corporate clients in financing, investment and access to international capital markets, public sector funding and interbank market operations.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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