• Loans to individuals and micro customers went up by 17.9% relative to the end of 2018 and amounted to 80.33 billion dinars; deposits of individuals and micro customers rose by 11.2% to 73.43 billion dinars.
• Corporate loans increased by 6.2% relative to the end of 2018 to 77.05 billion dinars; corporate deposits decreased by 3.3% to 45.54 billion dinars.
• Net interest income rose by 8.9% relative to the same period of 2018 to 5.36 billion dinars, while net fee and commission income rose by 8.8% to 1.26 billion dinars.
• Net profit amounted to 1.95 billion dinars at the end of Q3 2019, up by 16.2% relative to the same period of 2018.
• Total assets increased by 12.3%, from 202.93 billion dinars at the end of 2018 to 227.82 billion dinars at the end of Q3 2019.
• NPL ratio was 1.4% at the end of Q3 2019.

“At the end of the third quarter, we are posting excellent results in all areas of operation, in particular with individuals and micro clients, where a double-digit growth of loans and deposits was recorded. Entrepreneurs and micro clients mostly focused on investing in working assets, while small and medium-sized enterprises used investment loans and bank guarantees to expand and improve their business. Large companies were mostly interested in long-term financing“, stated Slavko Carić, CEO of Erste Bank a.d. Novi Sad.

He noted that Erste is celebrating two important anniversaries in Serbia this year – 200 years of Erste Group, its parent bank, and 155 years of Novosadska štedionica, the oldest financial institution in Serbia, its predecessor. “The support we provide our clients and society at large is based precisely on our founders’ vision about creating and spreading prosperity, democratising banking and creating equal opportunities for all. Our purpose is to provide stable support to all those who believe in themselves and wish to fulfil not only their financial goals, but also to bring new values to their community and our country “, Carić concluded.

At the end of Q3 2019, total loans to individuals and micro customers went up by 17.9% relative to the end of previous year, to 80.33 billion dinars. In comparison with the end of 2018, total deposits of individuals and micro customers also increased, by 11.2% to 73.43 billion dinars.

At the end of Q3 2019, total corporate loans amounted to 77.05 billion dinars, up by 6.2% relative to the end of 2018. Corporate deposits grew relative to the previous quarter, but were still slightly lower by 3.3% relative to the end of 2018 and amounted to 45.54 billion dinars at the end of Q3 2019. 

Regarding operating results, at the end of Q3 2019 the Bank posted 9.6% more operating income relative to the same period of last year, while operating expenses went up by 14.0%. Relative to the same period of 2018, the Bank's operating profit increased slightly by 0.4% and amounted to 2.12 billion dinars, while at the end of Q3 2018 the Bank recorded an operating result of 2.11 billion dinars.                  

At the end of Q3 2019, net interest income amounted to 5.36 billion dinars, which is 8.9% more than in the previous year, when it was 4.92 billion dinars. Net fee and commission income was 8.8% higher and amounted to 1.26 billion dinars.

Total net profit amounted to 1.95 billion dinars at the end of Q3 2019, up by 16.2% relative to the same period of 2018, when net profit amounted to 1.68 billion dinars. Improved portfolio quality is reflected in the reduction of the NPL ratio from 1.8% in Q3 2018 to 1.4% at the end of Q3 2019.

At the end of Q3 2019, the number of digital distribution channel users was 10.6% higher than in September 2018, so now more than 280 thousand Erste Bank clients use internet and mobile banking. Erste Bank continued to expand its network, which comprises 90 units at the end of September 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.