Andreas Treichl, CEO of Erste Group Bank AG on the Q3 2019 results:
"We continued to achieve very good results also in the third quarter, with healthy growth in both lending (+5.7 percent ytd) and deposits (+6.1 percent ytd), as well as excellent liquidity and funding positions. Overall for the first nine months of 2019, Erste Group achieved a net result of 1.22 billion euros. What’s more, our income growth outpaced cost growth, despite rising wages across CEE and the higher contributions we made to deposit insurance systems during the reporting period. As a result, we managed to improve our cost/income ratio to 58.6 percent. The continued vitality of the CEE economies contributed to the risk environment in the region remaining exceptionally benign. Our NPL ratio improved further by slipping to 2.7 percent, reflecting our healthy asset quality.
Erste Group’s capital base is very solid due to steady organic growth over the past years, and has been supported by successful placements of additional tier one capital in the market. Taking into account retained earnings for the third quarter (including accrued dividends), our common equity tier one ratio stood at 13.5 percent as of the end of September, thus meeting our internal CET1 target.
Going forward, CEE is set to remain Europe’s unquestionable growth engine and Erste Group, as the leading financial institution of the region, is well positioned to continue supporting it. Although across the globe, there are gathering signs of a downturn in the economic cycle, we remain confident that the CEE region will continue to outpace the Eurozone and that its growth will prove to be more sustainable than in the 2000’s."