- Loans to individuals and micro customers went up by 27.2% relative to the end of 2017 and amounted to 65.59 billion dinars; deposits of individuals and micro customers rose by 11.9% to 63.19 billion dinars.
- Corporate loans rose by 16.9% relative to the end of 2017 to 66.18 billion dinars; corporate deposits increased by 20.0% to 45.32 billion dinars.
- Net interest income rose by 5.9% relative to the same period of 2017 to 4.92 billion dinars, while net fee and commission income rose by 4.6% to 1.15 billion dinars.
- Net profit amounted to 1.68 billion dinars at the end of Q3 2018 relative to Q3 2017, when one-off positive effects of provision release and collections were recorded; net profit was one fifth lower and in line with projections.
- Total assets increased by 18.9%, from 161.92 billion dinars at the end of 2017 to 192.54 billion dinars at the end of Q3 2018.
- Capital adequacy ratio was 18.44%.
- NPL ratio at the end of Q3 2018 was 1.8%.
“Positive trends in business with retail clients, entrepreneurs and corporate clients also continued during the third quarter. Total retail and corporate loans rose by almost 22 percent compared to the end of last year, while total deposits increased by 15 percent. In addition, the level of non-performing loans is at its lowest point in the past ten years and amounts to only 1.8 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.
“Owing to the Step by Step Programme, for the first time in Serbia civil society organisations which multiply positive effects in their environments through their work, were granted loans to finance their working capital and investment. Through this programme, from the beginning of 2017 more than 80 first-time business owners and social enterprises were financed,“ pointed out Carić.
At the end of Q3 2018, total loans to individuals and micro customers went up by 27.2% relative to the end of the previous year to 64.59 billion dinars. In comparison with the end of 2017, total deposits of individuals and micro customers also increased, by 11.9% to 63.19 billion dinars.
At the end of Q3 2018, total corporate loans amounted to 66.18 billion dinars, which is a 16.9% increase relative to the end of 2017. Corporate deposits also posted an increase by 20.0% to 45.32 billion dinars at the end of Q3 2018.
Regarding operating results, in Q3 2018 the Bank posted 7.0% more operating income relative to the same period of last year, while operating expenses went up by 11.6%. Relative to the same period of 2017, the Bank's operating profit is only 1.4% lower and amounted to 2.11 billion dinars, while at the end of Q3 2017 the Bank recorded an operating result of 2.14 billion dinars.
During Q3 2018, net interest income amounted to 4.92 billion dinars, which is 5.9% more than in the previous year, when it was 4.65 billion dinars. Net fee and commission income was 4.6% higher and amounted to 1.15 billion dinars.
After Q3 2018 total net profit amounted to 1.68 billion dinars; relative to Q3 2017, when one-off positive effects were recorded from the release of provisions and due to positive effects of collection efforts, it was just one fifth lower and in line with expectations. Significant portfolio quality increase is reflected in NPL reduction from 4.02 at the end of Q3 2017 to 1.8 % at the end of Q3 2018.
At the end of Q3 2018 the number of digital distribution channel users was 10.4% higher than in September 2017, so now more than 254 thousand Erste Bank clients use internet and mobile banking. Erste Bank continued with the expansion of its network, which at the end of September 2018 had 85 units, while the total number of active clients was 415 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.