Source: eKapija | Monday, 07.08.2017.| 12:27
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Erste Bank realizes net profit of RSD 1.49 billion in first half of 2017 – Growth of 32%

The total net profit of Erste Bank, following the second quarter of 2017, amounts to RSD 1,486 million, a growth of as much as 32.1% compared to the corresponding period of 2016, when the net profit amounted to RSD 1.125 million. The growth is mostly down to increased volume and a better portfolio, reflected in the reduction of NPLs from 8% in June 2016 to 5.6%, as well as a positive net income from depreciation of financial assets and risky off-balance sheet items in the first and second quarter of 2017.

As stated in Erste Bank's press release, retail and micro client loans increased by 11.6% compared to the end of 2016, amounting to RSD 42 billion, whereas retail and micro client deposits grew by 3.1% to RSD 52.5 billion. Legal person loans amounted to RSD 58.4 billion, a drop of 1.7% compared to the end of 2016. On the other hand, legal person deposits increased by 11.4%, amounting to RSD 26.6 billion at the end of the second quarter.

– In line with our projections, the retail sector is still dominated by demand for housing loans, and, due to the general market trend of the lowering of interest rates, we are also recording an increased demand for refinancing and cash loans. The fact that entrepreneurs and small and medium enterprises used the first half of the year to invest in their fixed assets is especially encouraging. An improvement in our portfolio is reflected in a further reduction of the NPL ratio, which currently stands at 5.6% – stated Slavko Caric, chairman of the Executive Board of Erste Bank a.d. Novi Sad.

Regarding the operating activities, the bank had 9.2% more operating revenues at the end of the second quarter of 2017 than in the corresponding period of 2016, whereas the operating expenditures are higher by 4.5%. Compared to the same period in 2016, the bank's operating profit is higher by 19.1% and amounts to RSD 1,430 million.

In the second quarter of 2017, RSD 3,109 million of interest profit was realized, an increase by 10.9% compared to last year, when the item amounted to RSD 2,803 million. Net F&C profit is higher by 5.6% and amounts to RSD 733 million, Erste Bank said in its press release.
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