Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ERSTE GROUP BANK AG. We currently have 7 research reports from 1 professional analysts.
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ERSTE GROUP BANK AG
ERSTE GROUP BANK AG
Good 2016 earnings due to positive one-offs
28 Feb 17
Preliminary net profit attributable to shareholders increased by 31% to €1.26bn for FY2016 compared to FY2015. Net interest income was down by 2% to €4.37bn for 2016 compared to 2015. Commission income declined by 4% to €1.8bn in 2016. Operating income decreased slightly by 1% to €6.7bn for 2016. Risk provisions for loan losses dropped by 73% to €196m in 2016 compared to 2015. General administrative expenses increased by 4% to €4.0bn in 2016. Other operating result was a loss of €665m for 2016 compared to a loss of €636m for 2015. Pre-tax profit was up by 19% to €1.95bn for 2016 compared to 2015. The tax ratio was 21% for 2016 after 22% for 2015. The Basel 3 phase-in Core Tier 1 ratio improved from 12.3% for 2015 to 13.4% at the end of 2016. Return on tangible equity (ROTE) was 12.3% and RoE 10.8% for 2016 compared to ROTE 10.8% and RoE 9.3% for 2015. The dividend proposal per share doubled as guided from €0.50 for FY2015 to €1.00 for FY2016.
Good Q3 16 results and doubled dividend outlook
04 Nov 16
Net profit attributable to shareholders increased by 22% to €337m for Q3 16 compared to Q3 15. Net interest income was down by 4% to €1.07bn for Q3 16 compared to Q3 15. Risk provisions for loan losses were down by 74% to €37m in the same period. Operating income declined by 3% to €1.64bn in Q3 16. General administrative expenses rose by 3% to €983m for Q3 16. Other operating result was down from a loss of €177m for Q3 15 to a loss of €60m for Q3 16. Pre-tax profit rose by 29% to €562m for Q3 16. The tax ratio was slightly up from 20% for Q3 15 to 22% for Q3 16. The Basel 3 phase in Core tier 1 ratio was 13.2% at the end of Q3 16 compared to 12.3% at year-end 2015. Erste released very early a doubled dividend per share outlook of €1.00 for FY2016 compared to €0.5 for FY2015.
Higher net profit for FY2016 expected
15 Jul 16
Erste Group announced yesterday that it expects to report Q2 16 net profit of about €560m, resulting in H1 16 net profit of about €830m. The Q2 16 performance was primarily driven by the releases of risk provisions of about €30m (mainly due to releases in Hungary and Romania and the declining risk costs in all other geographies), the P&L recognition of the VISA sale one-off with a pre-tax amount of about €139m and the significantly improved operating as well as other operating results vs Q1 16. In line with this year-to-date performance, Erste Group revises upward its outlook for 2016 net profit to ROTE >12% (from 10-11% previously). This guidance includes a buffer for a potential banking tax one-off payment in Austria in 2016 (pending parliamentary approval of the government proposal), which is a prerequisite for a banking tax reduction of about €110m pre-tax per annum from 2017, and assumes no material negative one-offs in H2 16. A full business update will be provided with the publication of the H1 16 results due on 5 August 2016.
Good Q1 16 results
04 May 16
Net profit attributable to shareholders increased by 22% to €275m for Q1 16 compared to Q1 15. Net interest income was unchanged at €1.1bn for Q1 16 compared to Q1 15. Risk provisions for loan losses were down by 69% to €56m in the same period. Operating income declined by 4% to €1.63bn in Q1 16. General administrative expenses rose by 6% to €1.0bn for Q1 16. Other operating result was down from a loss of €154m for Q1 15 to a loss of €140m for Q1 16. Pre-tax profit came up by 3% to €427m for Q1 16. The tax ratio declined from 29% for Q1 15 to 25% for Q1 16. The Basel 3 phase in Core tier 1 ratio was 12.1% at the end of March 2016 compared to 12.3% at year-end 2015.
Expected turnaround successfully achieved
26 Feb 16
Preliminary net profit attributable to shareholders was €968m for FY2015 compared to a loss of €1.4bn for FY2014. Net interest income was down by 1% to €4.4bn for 2015 compared to 2014. Operating income decreased slightly by 1.5% to €6.8bn for 2015. Risk provisions for loan losses were down by 65% to €729m in 2015 compared to 2014. General administrative expenses increased by 2% to €3.9bn in 2015. Other operating result decreased from a loss of €1.75bn for 2014 to a loss of €636m for 2015. Pre-tax profit was €1.64bn for 2015 compared to a loss of €728m for 2014. The tax ratio was 26% for 2015. The Basel 3 phase-in Core Tier 1 ratio improved from 10.6% (2014) to 12.3% at the end of 2015. Return on tangible equity (ROTE) was 10.8% and RoE 9.3% for 2015. The dividend proposal per share is €0.50 for FY2015 compared to no dividend for FY2014. As a result of the 2015 Supervisory Review and Evaluation Process (SREP) performed by the European Central Bank (ECB), Erste Group on a consolidated level is required to meet a transitional Common Equity Tier 1 (CET1) ratio of 9.5% as of 1 January 2016. This minimum CET1 ratio of 9.5% includes Pillar 1, Pillar 2 and capital conservation buffer requirements. In addition, the systemic risk buffer required by the Austrian Financial Markets Authority (FMA) to be applied on top of the SREP ratio is equal to 0.25% for the group from 1 January 2016, resulting in a prudential capital requirement of 9.75%, relating to total risk, for Erste Group as of 1 January 2016. The systemic risk buffer will increase in the following years to 0.5% (2017), 1% (2018) and 2% (2019).
Again, good quarterly results for Q3 15 lead to higher targets
06 Nov 15
Net profit attributable to shareholders was €277m for Q3 15 compared to a loss of €554m for Q3 14. Net interest income was down by 1% to €1.1bn for Q3 15 compared to Q3 14. Operating income was flat at €1.7bn for Q3 15 compared to Q3 14. Risk provisions for loan losses were down by 84% to €144m in the same period mainly due to higher risk costs in Romania for Q3 14. General administrative expenses increased by 8% to €956m for Q3 15. Other operating result rose from a loss of €357m for Q3 14 to a loss of €177m for Q3 15. The Q3 14 figure included charges of €231m resulting from the Hungarian consumer loan law. Pre-tax profit was €437m for Q3 15 compared to a loss of €414m for Q3 14. The tax ratio was 20% for Q3 15. The Basel 3 phase-in Core tier 1 ratio was 11.5% at the end of September 2015 and was 11.2% on a pro-forma fully applied basis. Management lifted its return on tangible equity (ROTE) from a target range of 8-10% to around 10% for 2015. ROTE was 12.2% for Q3 15 and 11.5% for 9M 15. It also released a new ROTE target for FY2016 which is 10-11%.
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
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Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.