Interest rate hikes and increasing demand for loans brought Erste Group higher net interest and commission income and more profit in the first half of 2022. All in all, the bank generated EUR 1.14 billion, following EUR 918 million in the same period of the previous year. For the year as a whole, net loan growth is forecast to be in the high single-digit percentage range. The bank is aiming for a dividend of EUR 1.90 per share for 2022.
The credit volume rose by 6.3 percent to EUR 191.5 billion in the first half of the year. Real estate and corporate loans in particular were in demand. Together with interest rate increases in the Czech Republic, Hungary and Romania, this resulted in an increase in net interest income of 15.9 percent to EUR 2.84 billion. Net commission income increased by 10.5 percent to EUR 1.21 billion.
“The general geopolitical situation and high inflation are clouding the prospects in Europe. Nevertheless, the economies in the eastern EU have so far been resilient,” said Erste Group CEO Willibald Cernko in a press release. The state coffers are solid, the job market is developing positively and companies are still willing to invest.
