Erste net fee and commission income rose 3.4% in the first quarter

Erste net interest income increased – mainly in the Czech Republic and Austria, but also in Romania – to EUR 1,229.0 million (+5.9%; EUR 1,160.9 million).

Net fee and commission income rose to EUR 504.2 million (+3.4%; EUR 487.7 million), primarily on the back of increased fees from securities business but also from asset management and insurance brokerage.

While net trading result declined significantly to EUR -157.4 million (EUR 153.3 million), the line item gains/losses from financial instruments measured at fair value through profit or loss was up at EUR 37.5 million (EUR -77.1 million), both line items being impacted by valuation effects due to increased market volatility amid the COVID-19 outbreak.

Operating income decreased to EUR 1,633.0 million (-6.1%; EUR 1,771.7 million)

General administrative expenses slightly declined to EUR 1,111.2 million (-0.4%; EUR 1115.6 million) as personnel expenses rose to EUR 630.0 million (+1.3%; EUR 621.9 million) while other administrative expenses came in lower at EUR 344.8 million (-3.8%; EUR 358.3 million).

Other administrative expenses already included almost all payments into deposit insurance schemes expected in 2020 in the amount of EUR 88.3 million (EUR 87.5 million). Amortisation and depreciation amounted to EUR 136.5 million (EUR 135.4 million). Overall, the operating result declined to EUR 551.7 million (-15.9%; EUR 656.0 million). The cost/income ratio rose to 66.8% (63.0%).

Other operating result amounted to EUR -127.6 million (EUR -131.1 million)

The expenses for the annual contributions to resolution funds included in this line item rose – in particular in the Czech Republic and in Slovakia – to EUR 84.0 million (EUR 78.0 million).

The rise in banking and transaction taxes to EUR 49.9 million (EUR 38.8 million) is primarily attributable to the doubling of banking levies in Slovakia to EUR 16.9 million (EUR 8.0 million) as the change in the law adopted in 2019 took effect as of 1 January 2020. Hungarian banking tax for the financial year 2020 amounted to EUR 14.2 million (EUR 12.5 million).

Due to one-off effects in Romania, taxes on income increased to EUR 103.0 million (EUR 95.5 million). The minority charge declined to EUR 23.0 million (EUR 89.3 million) due to significantly lower earnings contributions of the savings banks. The net result attributable to owners of the parent amounted to EUR 235.3 million (-37.6%; EUR 377.0 million).

Total assets rose to EUR 262.9 billion (EUR 245.7 billion). On the asset side, cash and cash balances increased to EUR 23.0 billion (EUR 10.7 billion), while loans and advances to credit institutions increased to EUR 24.3 billion (EUR 23.1 billion).

Loans and advances to customers rose to EUR 161.1 billion (+0.5%; EUR 160.3 billion).

On the liability side, deposits from banks increased to EUR 20.7 billion (EUR 13.1 billion) and customer deposits grew again – most notably in the Czech Republic and in Austria – to EUR 182.2 billion (+4.8%; EUR 173.8 billion). The loan-to-deposit ratio stood at 88.4% (92.2%).