Erste Bank 1Q Net Profit Rose on Strong Growth in Operating Result

By Christian Moess Laursen

Erste Group Bank AG said on Friday that its net profit rose in the first quarter of 2023 on a strong operating result and growth in net interest income.

The Austrian bank said that its net profit rose to 593.6 million euros ($658.1 million) in the quarter from EUR448.8 million in the prior-year's same quarter as its operating result jumped to EUR1.26 billion from EUR801.0 million a year prior.

Net interest income climbed 27% to EUR1.77 billion on favorable interest rates and a larger customer loan volume, while its net fee and commission income rose 4% to EUR642.7 million.

Looking ahead, the lender--which focuses on central and eastern Europe--issued full-year guidance on net interest income growth of 15%.

The Vienna-based company confirmed its outlook on net loan growth of mid-single digit, return on tangible equity between 13% and 15%, and a strong CET1 ratio for 2023.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

April 28, 2023 02:13 ET (06:13 GMT)

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