· Loans to individuals and micro customers went up by 34.1% relative to the end of 2017 and amounted to 68.11 billion dinars; deposits of individuals and micro customers rose by 16.9% to 66.02 billion dinars.
· Corporate loans rose by 28.1% relative to the end of 2017 to 72.54 billion dinars; corporate deposits increased by 24.7% to 47.08 billion dinars.
· Net interest income rose by 7.6% relative to the same period of 2017 to 6.69 billion dinars, while net fee and commission income rose by 6.8% to 1.59 billion dinars.
· Net profit amounted to 2.92 billion dinars at the end of 2018, which was a 10.9% better result than in the same period of 2017.
· Total assets increased by 25.3%, from 161.92 billion dinars at the end of 2017 to 202.93 billion dinars at the end of 2018.
· NPL ratio was 1.6% at the end of 2018.
“In 2018, we again achieved exceptional results in our work with clients. The trust our clients demonstrated in us resulted in a 20 percent increase in total retail and corporate deposits, while total loans rose by more than 30 percent. In the retail segment we supported about 2,500 clients in securing a home for their families and themselves, while our financial support and advices enabled our corporate clients to benefit from the favourable economic environment and carry out their plans and investments “, stated Slavko Carić, CEO of Erste Bank a.d. Novi Sad.
"Apart from the record results achieved for several consecutive years, we believe that business sustainability requires a new business concept, in line with a digital future we are facing. For that reason, we have continued with large investments in a comprehensive transformation of the Bank, initiated last year. We wish to meet the needs of the coming generations in the best way. We wish to be true partner to our existing and potential clients, to create products and services anticipate their needs, as well as to provide the best user experience “, added Carić.
At the end of 2018, total loans to individuals and micro customers went up by 34.1% relative to the end of previous year to 68.11 billion dinars. In comparison with the end of 2017, total deposits of individuals and micro customers also increased, by 16.9% to 66.02 billion dinars.
In Q4 2018, total corporate loans amounted to 72.54 billion dinars, which is a 28.1% increase relative to the end of 2017. Corporate deposits also posted an increase of 24.7% to 47.08 billion dinars at the end of 2018.
Regarding operating results, in Q4 2018 the Bank posted 8.4% more operating income relative to the same period of last year, while operating expenses went up by 7.3%. Relative to the same period of 2017, the Bank's operating profit was 10.8% higher and amounted to 2.85 billion dinars, while at the end of Q4 2017 the Bank recorded an operating result of 2.57 billion dinars.
During Q4 2018, net interest income amounted to 6.69 billion dinars, which is 7.6% more than in the previous year, when it was 6.22 billion dinars. Net fee and commission income was 6.8% higher and amounted to 1.59 billion dinars.
At the end of 2018, total net profit amounted to 2.92 billion dinars, which is a 10.9% better result relative to the same period of 2017, when net profit amounted to 2.63 billion dinars. Significant portfolio quality increase is reflected in NPL reduction from 3.2% at the end of 2017 to 1.6% at the end of Q4 2018.
At the end of 2018, the number of digital distribution channel users was 10.5% higher than in December 2017, so now more than 261 thousand Erste Bank clients use internet and mobile banking. Erste Bank continued with the expansion of its network, which at the end of December 2018 had 87 units, while the total number of active clients was 421 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.