Austria's Erste Group 2025 net profit rises 12.3% on loan growth

Erste Bank AG

26/02/2026 06:41

Overview

Austria-based bank's 2025 net profit rose 12.3% to EUR 3,510 mln

Net interest income increased 3.5% to EUR 7,788 mln, driven by CEE growth

Net fee and commission income rose 8.6% to EUR 3,191 mln

Outlook

Erste Group targets 2026 return on tangible equity of about 19%

Company expects 2026 net interest income to exceed EUR 11 bln

Cost/income ratio projected to improve to about 45% in 2026

Result Drivers

LOAN GROWTH AND LOWER INTEREST EXPENSES - Net interest income increased due to loan growth and lower interest expenses on customer deposits, particularly in the Czech Republic and Slovakia

FEE INCOME GROWTH - Net fee and commission income rose across all core markets, driven by asset management, securities business, and insurance brokerage

OPERATING EXPENSES INCREASE - Operating expenses rose due to higher personnel and IT costs, impacting the cost/income ratio

Company press release: ID:nPext8lzYa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Net Income
EUR 3.51 bln
FY Net Interest Income
EUR 7.79 bln
FY CET1 Capital Ratio
19.30%
FY Net Fee Income
EUR 3.19 bln
FY Operating Expenses
-EUR 5.58 bln
FY Operating income
EUR 11.66 bln
FY ROE
16.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Erste Group Bank AG is €105.00, about 0.1% above its February 25 closing price of €104.90

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)