· Loans to individuals and micro customers went up by 9.5% relative to the end of 2018 and amounted to 74.58 billion dinars; deposits of individuals and micro customers rose by 6.5% to 70.32 billion dinars.
· Corporate loans decreased by 1.5% relative to the end of 2018 to 71.44 billion dinars; corporate deposits decreased by 1.1% to 46.57 billion dinars.
· Net interest income rose by 9.2% relative to the same period of 2018 to 3.49 billion dinars, while net fee and commission income rose by 4.0% to 0.79 billion dinars.
· Net profit amounted to 1.09 billion dinars at the end of Q2 2019, up by 25.4% relative to the same period of 2018.
· Total assets increased by 8.8%, from 202.93 billion dinars at the end of 2018 to 220.69 billion dinars at the end of Q2 2019.
· NPL ratio at the end of Q2 2019 was 1.4 %.
„Continued positive market trends have contributed to very good results we have achieved in working with private clients and enterpreneurs.
Joining the programmes of international financial institutions and Government of Serbia, we have offered our clients a vast palette of financial products in order to enable them to advance their quality of life, their business, products and services.
Due to lowered interest rates, citizens were focused primarily on cash and refinancing loans, and we have also recorded significant interest for housing loans.
Enterpreneurs and micro clients have invested most in current assets, while they additionally improved their business with investments in fixed assets. With small and medium enterprises we have recorded a growth of demand for bank guarantees as means of security, primarily as a result of positive trends in construction industry.
As for large enterprises, more significant investments are expected in the second half of the year”, stated Slavko Caric, CEO of Erste Bank a.d. Novi Sad.
He reminded that this year Erste Bank launched a first-of-a-kind, comprehensive financial education programme #ErsteZnali, intended for all citizens.
“Making financially responsible decisions is a skill that can truly change our future. Education in that domain is of exceptional significance for overall prosperity of society and sustainability of all types of business”, concluded Caric.
At the end of Q2 2019, total loans to individuals and micro customers went up by 9.5% relative to the end of previous year to 74.58 billion dinars. In comparison with the end of 2018, total deposits of individuals and micro customers also increased, by 6.5% to 70.32 billion dinars.
At the end of Q2 2019, total corporate loans amounted to 71.44 billion dinars, down by 1.5% relative to the end of 2018. Corporate deposits grew relative to the previous quarter, but they were still 1.1% lower relative to the end of 2018 and amounted to 46.57 billion dinars at the end of Q2 2019.
Regarding operating results, in Q2 2019 the Bank posted 8.5% more operating income relative to the same period of last year, while operating expenses went up by 17.3%. Relative to the same period of 2018, the Bank's operating profit was 11.2% lower and amounted to 1.17 billion dinars, while at the end of Q2 2018 the Bank recorded an operating result of 1.32 billion dinars.
During Q2 2019, net interest income amounted to 3.49 billion dinars, which is 9.2% more than in the previous year, when it was 3.20 billion dinars. Net fee and commission income was 4.0% higher and amounted to 0.79 billion dinars.
Total net profit amounted to 1.09 billion dinars in Q2 2019, up by 25.4% relative to the same period of 2018, when net profit amounted to 0.87 billion dinars. Improved portfolio quality is reflected also in the reduction of the NPL ratio from 1.96% in Q2 2018 to 1.4% at the end of Q2 2019.
In Q2 2019, the number of digital distribution channel users was 9.0% higher than in June 2018, so now more than 269 thousand Erste Bank clients use internet and mobile banking. Erste Bank netowrk comprises 88 units at the end of June 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.