Investor information 2026

26.02.2026 - Erste Group: Results 2025

Erste Group posts net profit of EUR 3,510 million in 2025

HIGHLIGHTS

P&L 2025 compared with 2024; balance sheet 31 December 2025 compared with 31 December 2024

Net interest income increased to EUR 7,788 million (+3.5%; EUR 7,528 million), primarily in the Czech Republic and Slovakia, on the back of loan growth and lower interest expenses on customer deposits. Net fee and commission income rose to EUR 3,191 million (+8.6%; EUR 2,938 million). Growth was registered across all core markets and income categories. Net trading result declined to EUR 313 million (EUR 519 million); the line item gains/losses from financial instruments measured at fair value through profit or loss rose to EUR 107 million (EUR -82 million). The development of both line items was mostly attributable to valuation effects. Operating income increased to EUR 11,659 million (+4.3%; EUR 11,178 million). General administrative expenses were up at EUR 5,583 million (+5.8%; EUR 5,279 million). Personnel expenses increased to EUR 3,335 million (+4.1%; EUR 3,202 million) driven by collectively agreed salary increases. Other administrative expenses were higher at EUR 1,688 million (+10.4%; EUR 1,529 million). While contributions to deposit insurance schemes included in other administrative expenses declined to EUR 53 million (EUR 72 million), IT expenses increased to EUR 717 million (EUR 622 million). Consulting expenses were also up at EUR 205 million (EUR 158 million). Amortisation and depreciation amounted to EUR 560 million (+2.3%; EUR 547 million). Overall, the operating result improved to EUR 6,076 Mio (+3.0%; EUR 5,900 million), the cost/income ratio stood at 47.9% (47.2%).

The impairment result from financial instruments amounted to EUR -478 million or 21 basis points of average gross customer loans (EUR -397 million or 18 basis points). Allocations to provisions for loans and advances were posted primarily in Austria. Positive contributions came from recoveries of loans already written off (again most notably in Austria). The NPL ratio based on gross customer loans improved to 2.4% (2.6%). The NPL coverage ratio (excluding collateral) slipped to 69.7% (72.5%).

Other operating result amounted to EUR -158 million (EUR -414 million). This development was attributable to negative one-off effects posted in the previous year as well as several positive one-off effects in the reporting year. The positive impact of one-time items amounted to approximately EUR 270 million in total. The decline in annual contribution payments to resolution funds to EUR 15 million (EUR 28 million) also had a favourable impact. Banking levies went up, though. EUR 372 million (EUR 245 million) are reflected in other operating result: thereof, EUR 175 million (EUR 168 million) were charged in Hungary. In Austria, banking tax rose to EUR 133 million (EUR 40 million) on the back of a temporary tax increase, in Romania it amounted to EUR 63 million (EUR 37 million). The banking tax in Slovakia of EUR 67 million (EUR 103 million) is posted in the line item taxes on income.

Taxes on income amounted to EUR 1,103 million (EUR 1,053 million). The decline in the minority charge to EUR 788 million (EUR 819 million) was attributable to lower profitability at the savings banks. The net result attributable to owners of the parent rose to EUR 3,510 million (+12.3%; EUR 3,125 million).

Total equity not including AT1 instruments rose to EUR 31.2 billion (EUR 28.1 billion). After regulatory deductions and filtering in accordance with the CRR, common equity tier 1 capital (CET1, phased-in) rose to EUR 28.5 billion (EUR 24.0 billion), total own funds (phased-in) to EUR 36.5 billion (EUR 30.9 billion). Total risk – risk-weighted assets including credit, market and operational risk (CRR, phased-in) – declined to EUR 147.5 billion (EUR 157.2 billion). The common equity tier 1 ratio rose to 19.3% (15.3%), the total capital ratio to 24.8% (19.7%), both ratios are CRR phased-in.

Total assets increased to EUR 368.6 billion (+4.2%; EUR 353.7 billion). On the asset side, cash and cash balances rose to EUR 27.6 billion (EUR 25.1 billion); loans and advances to banks were lower at EUR 20.8 billion (EUR 27.0 billion). Loans and advances to customers rose to EUR 232.0 billion (+6.4%; EUR 218.1 billion), most strongly in Central and Eastern Europe, in particular in the Czech Republic, Hungary and Serbia. On the liability side, deposits from banks declined to EUR 16.9 billion (EUR 21.3 billion). Customer deposits rose – most strongly in the Czech Republic – to EUR 253.0 billion (+4.7%; EUR 241.7 billion). Deposit growth was driven by core deposits (Retail, SMEs and Savings Banks segment). The loan-to-deposit ratio stood at 91.7% (90.2%).

Outlook 2026

Erste Group’s goal for 2026 is to achieve a return on tangible equity (ROTE) of about 19% and an increase in earnings per share of more than 20% based on 2025 net profit adjusted for one-off items compared to 2026 net profit adjusted for extraordinary items connected to the acquisition and first-time consolidation of Erste Bank Polska. This ambition is built on the following key assumptions:

Firstly Erste Group’s business, as at year-end 2025 in seven core markets (Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia and Serbia), is expected to perform well supported by an improved macro-economic environment, broadly stable interest rates, especially in the euro zone, stable margins and healthy loan volume growth of more than 5%. Operating performance as defined by operating result (operating income minus operating expenses) is expected to improve year-on-year, as net interest income is projected to grow by about 5%, fee and commission income continues to grow by more than 5%, net trading and fair result produces a similar revenue contribution as in 2025, and operating expenses grow in the order of 3%. Consequently, the cost/income ratio is expected to improve from the level of about 48% in 2025 to about 47% in 2026. Other operating result is expected to normalise following several positive one-offs in the amount of about EUR 270 million in 2025 and be more in line with the amount of banking levies also booked in this line item. Risk costs, at 20-25 basis points, are expected at a similarly benign level as in 2025.

Secondly, extraordinary effects due to the full consolidation of Erste Bank Polska are primarily expected in net interest income, operating expenses and risk costs. Net interest income will be negatively impacted by about EUR 170 million (equivalent to a net profit impact of approx. EUR -60 million) connected to the amortisation of positive fair value adjustments recognised on debt securities and derivatives. In addition, interest income earned on the purchase price in 2025 will not recur in 2026. Operating expenses will be affected by the amortisation of intangibles (customer stock and brand) and the booking of integration costs. Customer relationships will be amortised over 10 years in the amount of about EUR 210 million per annum (net profit impact of approx. EUR -70 million), while the brand will be fully written off following rebranding in 2026 (EUR 30 million gross or EUR ~10 million net). Remaining integration costs are forecast at EUR 180 million gross, mostly booked in 2026. The corresponding net impact will depend on the allocation of costs between the parent company and the local bank, which is still to be determined. Risk costs will be impacted by a EUR 300 million charge (net profit impact of about EUR -120 million) for expected credit losses of the Polish portfolio required under IFRS 9 following fair valuation of all assets and liabilities on first-time consolidation, in line with IFRS 3. This charge is not indicative of portfolio deterioration.

Consequently, taking into account organic underlying growth as well as the contribution from Erste Bank Polska including extraordinary effects from its first-time consolidation, Erste Group in its now eight core markets, in 2026, targets net interest income in excess of EUR 11 billion, fee income of approx. EUR 4 billion and operating expenses of about EUR 7 billion. Consequently, the cost/income ratio is projected to improve to about 45%. Risk costs are expected in the range of 25-30 basis points of average gross customer loans, as risk costs tend to be somewhat higher in Poland than in other CEE markets. This expectation is adjusted for the EUR 300 million one-off ECL provision mentioned above. Reported net profit for the combined entity is forecast somewhat below EUR 4 billion, net profit adjusted for extraordinary items related to first time consolidation of Erste Bank Polska is projected at somewhat above EUR 4 billion.

First-time consolidation of Erste Bank Polska is expected to result in a CET 1-ratio drawdown of approximately 460 basis points, and consequently, lead to a dip in the CET 1-ratio in the first quarter of 2026, albeit from a historic record level of 19.3% at the end of 2025. Thereafter, in line with the projected strong profit performance, the CET1 ratio is expected to increase in 2026, providing renewed capital return and/or M&A flexibility. Due to the full internal funding of the Erste Bank Polska acquisition, which required higher profit retention in 2025, Erste Group management will propose a reduced dividend payment of EUR 0.75 per share to the annual general meeting. This equals a payout ratio from 2025 net profit after deduction of AT1-dividends of 9.1%, in line with the 2025 dividend policy of limiting the payout ratio to 10%, announced at the time of acquisition.

Potential risks to the guidance include (geo)political and economic (including monetary and fiscal policy impacts) developments, regulatory measures as well as changes to the competitive environment. Current international (military) conflicts do not impact Erste Group directly, as it has no operating presence in regions involved. Indirect effects, such as financial markets volatility, sanctions-related knock-on effects, supply chain disruptions or the emergence of deposit insurance or resolution cases cannot be ruled out, though. Erste Group is moreover exposed to non-financial and legal risks that may materialise regardless of the economic environment. Worse than expected economic development may put goodwill at risk.