· Loans to individuals and micro customers went up by 19.1% relative to the end of 2017 and amounted to 60.45 billion dinars; deposits of individuals and micro customers rose by 7.3% to 60.59 billion dinars.
· Corporate loans rose by 6.5% relative to the end of 2017 to 60.32 billion dinars; corporate deposits increased by 2.4% to 38.66 billion dinars.
· Net interest income rose by 2.8% relative to the same period of 2017 to 3.20 billion dinars, while net fee and commission income rose by 3.8% to 0.76 billion dinars.
· Net profit amounted to 0.87 billion dinars at the end of Q2 2018; relative to Q2 2017 when one-off positive effects of provision release and collections were recorded, it was just over one third lower and in line with projections.
· Total assets increased by 10.7%, from 161.92 billion dinars at the end of 2017 to 179.27 billion dinars at the end of Q2 2018.
· Capital adequacy ratio is 16.70%.
· NPL ratio at the end of Q2 2018 was 1.96%.
"In the second quarter we saw a continuation of positive trends in all segments. The level of bad loans is the lowest in the past ten years, at 1.96 percent, 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 pointed out that Erste Bank is the first bank in Serbia which signed an agreement with the EBRD on granting loans intended for all citizens wishing to invest in energy efficient solutions for their homes, with a grant of up to 20 percent of the investment. This is the first agreement of this type in Serbia, confirming the commitment of Erste Bank to work actively, together with its partners from the EBRD, on protecting the environment and promoting energy efficiency in households.
Additionally, as part of the bank's Step by Step programme, social entrepreneurs and non-profit organisations are granted loans at lower interest rates and with reduced collateral requirements.
"Erste Bank issued its tenth CSR Report, showing that a balance can be struck between responsible and profitable operation, taking into account the needs and opinions of employees, clients, partners, as well as citizens from the communities in which we operate”, pointed out je Slavko Carić.
At the end of Q2 2018, total loans to individuals and micro customers went up by 19.1% relative to the end of previous year to 60.45 billion dinars. In comparison with the end of 2017, total deposits of individuals and micro customers also increased, by 7.3% to 60.59 billion dinars.
At the end of Q2 2018, total corporate loans amounted to 60.32 billion dinars, which is a 6.5% increase relative to the end of 2017. Corporate deposits also posted an increase by 2.4% to 38.66 billion dinars at the end of Q2 2018.
Regarding operating results, in Q2 2018 the Bank posted 5.1% more operating income relative to the same period of last year, while operating expenses went up by 12.2%. Relative to the same period of 2017, the Bank's operating profit is 7.9% lower and amounted to 1.32 billion dinars, while at the end of Q2 2017 the Bank recorded an operating result of 1.43 billion dinars.
During Q2 2018, net interest income amounted to 3.20 billion dinars, which is 2.8% more than in the previous year, when it was 3.11 billion dinars. Net fee and commission income was 3.8% higher and amounted to 0.76 billion dinars.
After Q2 2018 total net profit amounted to 0.87 billion dinars; relative to Q2 2017 when one-off positive effects were recorded from the release of provisions and due to positive effects of collection efforts, it was just over one third lower. The volume increase led to an increase in regular provisioning costs, in line with expectations. Significant portfolio quality increase is reflected in NPL reduction from 5.6% at the end of Q2 2017 to 1.96 % at the end of Q2 2018.
At the end of Q2 2018 the number of digital distribution channel users was 10.7% higher than in June 2017, so now more than 247 thousand Erste Bank clients use internet and mobile banking. Erste Bank continued with the expansion of its network, which at the end of June 2018 had 87 units, while the total number of active clients was 406 thousand in June.
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.