Erste Group posts 80 per cent increase in net profit in Romania in 2018

Erste Group’s annual net profit rose by more than a third to 1.79 billion Euro, a record in the group’s history, 477 million Euro higher than the net profit recorded in 2017, based on an increase of the operating income, lower risk costs and lower taxes.

In Romania, Erste’s BCR profit grew in 2018 by more than 80 percent, to 220 million Euro.

Operating income rose to 6.91 million Euro (+3.7 percent). General administrative expenses were nearly stable at 4.18 million (+0.5 percent). This was mostly attributable to the reduction of other administrative expenses to 1.23 million Euro (-5.7 percent).

Payments to deposit insurance systems included in this line item amounted to 88.6 million Euro. This reduction almost fully compensated the rise in personnel expenses to 2.47 million Euro (+3.6 percent) and in depreciation and amortisation (+2.6 percent). Overall, the operating result improved to 2.73 million Euro (+8.9 percent) and the cost/income ratio to 60.5 percent (compared to 62.4 percent in 2017).