· Loans to individuals and micro customers went up by 5.6% relative to the end of 2018 and amounted to 71.93 billion dinars; deposits of individuals and micro customers rose by 2.0% to 67.35 billion dinars.
· Corporate loans rose by 0.9% relative to the end of 2018 to 73.21 billion dinars; corporate deposits decreased by 5% to 44.74 billion dinars.
· Net interest income rose by 9.3% relative to the same period of 2018 to 1.73 billion dinars, while net fee and commission income decreased by 1.5% to 0.35 billion dinars.
· Net profit amounted to 0.63 billion dinars at the end of Q1 2019, up by 14.8% relative to the same period of 2018.
· Total assets increased by 3.3%, from 202.93 billion dinars at the end of 2018 to 209.59 billion dinars at the end of Q1 2019.
· NPL ratio at the end of Q1 2019 was 1.5%.
"In the first quarter, we posted excellent growth in all segments, as well as continued positive trends from the previous year, resulting in a net profit of 631 million dinars. In the retail segment, we provided financial support to close to 600 clients from across Serbia in securing a home for themselves and their families, while cash loans also recorded growth. When it comes to the corporate segment, in the first quarter small enterprises and sole traders used loans to invest in current assets, while medium-sized and large enterprises most often opted for investment loans for the purpose of modernising and upgrading their operations.
In addition, in the first quarter we successfully issued our RSD-denominated corporate bond. Large investor demand has demonstrated that in Serbia there is interest in investing in dinar-denominated corporate securities. We are pleased that domestic banks, insurance companies and pension funds, as well as one of the leading international development banks, the European Bank for Reconstruction and Development, have recognised the importance of this investment and our efforts to work on further development of the domestic capital market. We especially rejoiced at the fact that demand exceeded supply, proving to us that we are recognised in the market as an exceptionally stable bank with promising future“, stated Slavko Carić, CEO of Erste Bank a.d. Novi Sad.
At the end of Q1 2019, total loans to individuals and micro customers went up by 5.6% relative to the end of previous year to 71.93 billion dinars. In comparison with the end of 2018, total deposits of individuals and micro customers also increased, by 2.0% to 67.35 billion dinars.
At the end of Q1 2019, total corporate loans amounted to 73,21 billion dinars, up by 0.9% relative to the end of 2018. Corporate deposits decreased slightly by 5% to 44.74 billion dinars at the end of Q1 2019.
Regarding operating results, in Q1 2019 the Bank posted 5.5% more operating income relative to the same period of last year, while operating expenses went up by 20.4%. Relative to the same period of 2018, the Bank's operating profit is 22.9% lower and amounted to 0.56 billion dinars, while at the end of Q1 2018 the Bank recorded an operating result of 0.73 billion dinars.
During Q1 2019, net interest income amounted to 1.73 billion dinars, which is 9.3% more than in the previous year, when it was 1.58 billion dinars. Net fee and commission income was 1.5% lower and amounted to 0.35 billion dinars.
In Q1 2019, total net profit amounted to 0.63 billion dinars, up by 14.8% relative to the same period of 2018, when net profit amounted to 0.55 billion dinars. Improved portfolio quality is reflected in the reduction of the NPL ratio from 1.96% in Q1 2018 to 1.5% at the end of Q1 2019.
In Q1 2019, the number of digital distribution channel users was 8.3% higher than in March 2018, so now more than 264 thousand Erste Bank clients use internet and mobile banking. Erste Bank continued with the expansion of its network, comprising 88 units at the end of March 2019.
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.