Erste Group 4Q 19 - Earnigns in line, guidance confirmed
Q4 19 net result of EUR 247 mn was in line with consensus and slightly ahead of our estimates. As already flagged earlier results have been impacted by a EUR 165 mn impairment of the SK goodwill due to the extension and doubling of the SK bank tax.NII came in slightly better than expected driven by ongoing strong loan growth (+7.7% yoy, +1.6% qoq with HU, SK, HR and RS as the most dynamic countries) as well as slightly better than expected NIM on group level (2.20%, +6 bps qoq, -13 bps yoy). F&C fared a bit weaker not showing the seasonal uptick pattern in 4Q. While trading income fared better, risk costs (EUR 82 mn, 17 bps) were higher than expected.
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.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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