“We are pleased with the continued stable business trends and positive financial results delivered by our Bank and our local EBC Group in the first nine months of this year. Total lending growth, accompanied by increased new lending volume in retail and corporate segments alike, upward trends in the use of our digital channels, stable growth of our deposit base, and positive risk cost movement trends further consolidate our position in the Croatian banking market”, said Christoph Schoefboeck, President of the Management Board of Erste&Steiermärkische Bank d.d. (“Bank”), commenting on the Bank’s performance in the first nine months of 2024. “Given our very strong capital position, high level of liquidity, and the highest rating among banks and other companies in the Croatian market assigned to us by the rating agencies, we will continue to support Croatian citizens and companies in fulfilling their financial needs while giving the continued growth and development of the entire Croatian economy an added boost”, Schoefboeck concluded.
HIGHLIGHTS
According to the unconsolidated financial statement, comprising the Bank’s result not including subsidiaries, net profit amounted to EUR 187 million in the first nine months of 2024, up 2.7% from EUR 182 million in the same period last year. The increase in net profit was driven by increased revenue from ordinary business operations, particularly the higher lending volume in the retail segment, and the higher SME lending volume in the corporate segment. At the same time, the cost component also recorded growth, mainly as a result of higher interest rates on term deposits and to a lesser extent also as a result of the growth of personnel expenses and other administrative expenses.
Net interest income rose 6.6%, from EUR 259 million in the first nine months of 2023 to EUR 276 million in the same period of 2024, and net fee and commission income rose 12.5%, from EUR 64 million in the first three quarters of 2023 to EUR 72 million in the same period of 2024. Net trading and fair value result in the first nine months of 2024 was EUR 11 million and remained unchanged year-on-year.
The Bank’s total assets as at 30 September 2024 were EUR 14.5 billion, up 9.3% from EUR 13.3 billion at YE 2023. Loans to customers as at 30 September 2024 were EUR 8.2 billion, up 5.1% from EUR 7.8 billion at YE 2023. Deposits of the Bank’s clients as at 30 September 2024 were EUR 11.6 billion, up 7.6% from EUR 10.8 billion at YE 2023.
EBC Group’s1 net profit after minority interests in in the first nine months of 2024 was EUR 204 million, up 2.0% year-on-year from EUR 200 million in the same period of 2023. EBC Group’s net interest income was EUR 326 million, up 8.7% from EUR 300 million in in the first nine months of 2023. Net fee and commission income in in the first nine months of 2024 was EUR 99 million, up 8.8% from EUR 91 million in the same period of 2023. Net trading and fair value result in the first nine months of 2024 was EUR 12 million and remained unchanged year-on-year.
EBC Group’s total assets as at 30 September 2024 were EUR 16.11 billion, up 9.2% from EUR 14.75 billion at YE 2023. Loans to customers as at 30 September 2024 were EUR 8.9 billion, up 4.7% from EUR 8.5 billion at YE 2023. Deposits of EBC Group’s customers as at 30 September 2024 were EUR 12.3 billion, up 7.8% from EUR 11.4 billion at YE 2023.
1The consolidated financial statement for the EBC Group includes, in addition to Erste&Steiermärkische Bank d.d., the following affiliates: Erste Nekretnine d.o.o., Erste&Steiermärkische S-Leasing d.o.o, Erste Bank a.d., Podgorica, Erste Card Club d.o.o. and Izbor Nekretnina d.o.o.
DOWNWARD TREND IN NPLs CONTINUES
The downward trend in NPLs (non-performing loans and partially performing loans) continued in the first nine months of 2024. As at 30 September 2024, the NPL ratio at Bank level was 2.6% (down from 2.9% as at 31 December 2023). NPL ratio at consolidated EBC Group level as at 30 September 2024 was 2.7% (down from 3.0% as at 31 December 2023).
CONTINUED GROWTH OF DIGITAL CHANNELS
The Bank’s digital solutions maintained a continued and stable growth trend over the first three quarters of 2024. As at 30 September 2024, George online banking had a total of around 473,000 active users, up 15% from 410,000 active users at YE 2023. Total transaction volume of EUR 5.1 billion was up 21% compared to the first nine months of 2023. The KEKS Pay app reached the number of 477,000 active users as at 30 September 2024, up 16% from 410,000 at YE 2023. KEKS Pay’s total transaction volume of EUR 161 million in the first nine months of 2024 was up 56% compared to the same period in 2023.
Statement of Profit and Loss 1 January – 30 September 2024
Statement of Financial Position as at 30 September 2024