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Erste Group Posts Net Profit of EUR 624.7 Million in H1 2017
“Today, we are reporting a new series of positive results for the first six months of 2017: our performing loan volume grew by 6.7 percent and our client deposits by 11.6 percent. There are hardly any banks in Europe that can show this kind of growth. Part of that is simply down to the fact that our business model delivers, and, of course, that CEE is the fastest growing region in Europe.
Our capital situation is very solid with a common equity tier one capital ratio at 12.8 percent on a Basel 3 fully loaded basis, while we also see a continuous improvement of asset quality, continued low level of risk provisions and our non-performing loan ratio declining for the fourteenth consecutive quarter to 4.7 percent. As a consequence, we are now again A-rated by all three major rating agencies.
Going forward, we can’t afford to relax. Despite our strong lending performance and deposit gathering, our net interest income remained on the decline. Low interest rates and the run off of our securities portfolio require our attention. Our fee and commission income is slowly on the rise, which is good and which I consider a success given that we continue to be very careful about the kind of products and services we provide to our broad client base. We aim to stay on our track, for maybe moderate but steady growth, and I see a realistic chance that we will get our top line growing again.
Our expenses are still on the rise and we are working hard to get them down. Improving our data quality and our data stores aligned is still our number one priority and also the number one reason for rising expenses.
As for the outlook, we confirm our guidance and the goal to achieve a Return on Tangible Equity of 10 percent plus this year,” said Andreas Treichl, CEO of Erste Group Bank AG.
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