Erste Group: Solid FY 2022 Results Despite Macroeconomic Deterioration in Core Markets
The commentary analyses Erste Group’s FY 2022 results.Summary highlights from the commentary include:
• Erste Group Bank AG (Erste or the Group) reported a full-year 2022 net attributable income of EUR 2.2 billion, up by over 12.5% YoY, mainly driven by net interest income, which was up by 19.6% YoY.
• The Group expressed a positive outlook for their core revenues in 2023, including a rise in NII of 10% supported by loan growth of around 5%.
• Cost of risk (CoR) was up but remained low at 15 bps in 2022 from 9 bps in 2021, driven by updated credit risk parameters and portfolio overlays for cyclical and energy intense industries. Erste’s 2023 expects CoR to remain below 35 bps in 2023.
• Erste also improved its asset quality with an historically low gross NPL ratio of 2.0% at end-2022, down from 2.4% at end-2021, following a track record of continued asset quality improvement.
“Erste’s increased profitability in 2022 across most of its core markets reflects resilience despite macroeconomic deterioration in those geographies, which already experienced deceleration in economic growth in 2022” said Borja Barragán, Senior Analyst from the DBRS Morningstar Global Financial Institutions team. “We expect Erste to manage this challenging environment effectively thanks to satisfactory business dynamics, appropriate risk provisioning and sound capitalisation, which can absorb the potential risks present in its core markets.”.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.