· Loans to individuals and micro customers went up by 8.6% relative to the end of 2017 and amounted to 55.15 billion dinars; deposits of individuals and micro customers rose by 2.7% to 58.1 billion dinars.
· Corporate loans rose by 3.3% relative to the end of 2017 to 58.47 billion dinars; corporate deposits decreased by 27.2% to 26.55 billion dinars.
· Net interest income rose by 2.8% relative to the same period of 2017 to 1.58 billion dinars, while net fee and commission income rose by 2.5% to 0.36 billion dinars.
· Net profit amounted to 0.55 billion dinars at the end of Q1 2018. Relative to Q1 2017, when one-off positive effects were recorded from the release of provisions and collections, this constitutes a net profit reduction by about one quarter, which is in line with expectations.
· Total assets decreased by 0.5%, from 161.92 billion dinars at the end of 2017 to 161.18 billion dinars at the end of Q1 2018.
· Capital adequacy ratio is 18.08%.
· NPL ratio at the end of Q1 2018 was 1.96%.
"In the first quarter we recorded excellent growth in all key indicators. This resulted is a strong net profit of over half a billion dinars. In addition, at 1.96%, NPLs are the lowest they have been in the past ten years, which is far below the average not only in Serbia but also in the European Union“, stated Slavko Carić, CEO of Erste Bank a.d. Novi Sad.
Carić particularly emphasised that Erste Bank has, for the third year in a row, achieved record-breaking results, which has enabled the taking of an important decision regarding large investment in a new IT system and comprehensive bank transformation. "In order to enable our clients to benefit even more from all the advantages of digitalisation and personalised access, we have entered a cycle of large investments in a state-of-the-art and flexible banking system, cutting-edge global banking software technology“, emphasised Carić.
At the end of Q1 2018, total loans to individuals and micro customers went up by 8.6% relative to the end of previous year to 55.15 billion dinars. In comparison with the end of 2017, total deposits of individuals and micro customers also increased, by 2.7% to 58.01 billion dinars.
At the end of Q1 2018, total corporate loans amounted to 58.47 billion dinars, which is a 3.3% increase relative to the end of 2017. On the other hand, an outflow of a few corporate deposits led to their decline by 27.2% relative to the end of 2017 to 26.55 billion dinars at the end of Q1 2018.
Regarding operating results, in Q1 2018 the Bank posted 6.0% more operating income relative to the same period of last year, while operating expenses went up by 6.0%. Relative to the same period of 2017, the Bank's operating profit is 5.9% higher and amounted to 0.73 billion dinars, while at the end of Q1 2017 the Bank recorded an operating result of 0.69 billion dinars.
During Q1 2018, net interest income amounted to 1.58 billion dinars, which is 2.8% more than in the previous year, when it was 1.54 billion dinars. Net fee and commission income was 2.5% higher and amounted to 0.36 billion dinars.
After Q1 2018 total net profit amounted to 0.55 billion dinars. Relative to Q1 2017, when one-off positive effects were recorded from the release of provisions and collections, this constitutes a net profit reduction by about one quarter, which is in line with expectations. In Q1 2018 the NPL ratio was 1.96%, down from 5.8% in Q1 2017.
At the end of Q1 2018 the number of digital distribution channel users was 12.4% higher than in March 2017, so now more than 243 thousand Erste Bank clients use internet and mobile banking. Erste Bank continued with the expansion of its network, which at the end of March 2018 had 87 units, while the total number of active clients was 393 thousand in March.
OUTLOOK
Erste Bank a.d. Novi Sad continues to provide comprehensive support to Serbian citizens and businesses in realising their financial needs and goals. Business principles involving a focus on continuous improvement of its customer service, as well as constant enhancement of its internal organisation and efficiency will continue to be the basis of the Bank’s operation in the future.
NOTE 1: The published results are in line with the Law on Accounting and the adopted Decision on Chart of Accounts and Contents of Accounts in Bank Chart of Accounts (Official Gazette of RS, no. 71/2014) and the Decision on Forms and Content of Items in Bank Financial Statements (Official Gazette of RS, no. 71/2014) which came into force on 31 December 2014.
NOTE 2: The published results of individual members of Erste Group are not directly comparable with published Erste Group results by segment. Due to consolidation effects at the Erste Group level, because of which certain Erste Bank a.d. Novi Sad transactions with the members of Erste Group are eliminated, and due to the distribution of certain allocated capital costs, the consolidated results of Erste Bank a.d. Novi Sad at the Erste Group level differ from the results the Bank achieved and reported at the local level.