• Loans to individuals and micro customers went up by 22.9% relative to the end of 2018 and amounted to 83.70 billion dinars; deposits of individuals and micro customers rose by 19.7% to 79.04 billion dinars.
• Corporate loans rose by 9.2% relative to the end of 2018 to 79.23 billion dinars; corporate deposits rose by 0.3% to 47.20 billion dinars.
• Net interest income increased by 9.4% relative to the end of 2018 to 7.32 billion dinars, while net fee and commission income increased by 11.2% to 1.77 billion dinars.
• Net profit amounted to 2.68 billion dinars at the end of 2019. Relative to the same period of 2018, it is down by 8.2% and, at the same time, higher than initially budgeted, despite higher investments.
• Total assets increased by 14.1%, from 202.93 billion dinars at the end of 2018 to 231.45 billion dinars at the end of 2019.
• NPL ratio at the end of 2019 was 1.4%.

“The growth of all key operating indicators year after year, and in particular our customers’ satisfaction, present a validation of our corporate philosophy that it is possible to grow, while at the same time changing the bank and investing significant funds in the development of our new operating system “, stated Slavko Carić, CEO of Erste Bank a.d. Novi Sad.

The commitment of all staff to the customers’ needs, support and advisory approach resulted in a growth of total deposits by more than 12 percent, and of loans by more than 15 percent in 2019, with the NPL level of 1.4 percent primarily reflecting the good business performance of the clients and the Bank and being one of the lowest not only in Serbia but in the region as well.

“In our retail operations, we continue to see great interest in housing and cash loans, while deposit growth is a reflection of confidence in our banking group, which has been operating successfully for two centuries. Support to businesses during 2019 was focused on their investment activities, and we recorded excellent results in real estate lending. Additionally, with a successful issue of long-term dinar bonds, we contributed to the development of the local capital market and secondary debt securities market“, Slavko Carić pointed out.

He added that the goal of long-term investment in the new IT infrastructure is to provide the best customer experience, ensuring that the clients are supported by the Bank in all segments of their life and work.

At the end of 2019, total loans to individuals and micro customers went up by 22.9% relative to the end of the previous year to 83.70 billion dinars. In comparison with the end of 2018, total deposits of individuals and micro customers also increased, by 19.7% to 79.04 billion dinars.

At the end of 2019, total corporate loans amounted to 79.23 billion dinars, up by 9.2% relative to the end of 2018. Corporate deposits rose relative to the previous quarter and increased slightly by 0.3% relative to the end of 2018, to 47.20 billion dinars in 2019.

Regarding operating results, at the end of 2019 the Bank posted 10.6% higher operating income relative to the end of last year. Due to major investments in the Bank’s new core banking system, operating expenses went up by 16.3%, so the Bank's operating profit amounted to 2.81 billion dinars, which is 1.5% below the operating result at the end of 2018 (2.85 billion).

At the end of 2019, net interest income amounted to 7.32 billion dinars, which is 9.4% more than in the previous year, when it was 6.69 billion dinars. Net fee and commission income was 11.2% higher and amounted to 1.77 billion dinars.

Total net profit amounted to 2.68 billion dinars at the end of 2019, down by 8.2% relative to the end of 2018, when net profit amounted to 2.91 billion dinars, which is, at the same time, a better result than initially planned by the Bank, taking into account investment costs for the new information system.

The higher portfolio quality is reflected in the NPL reduction from 1.6% at the end of 2018 to 1.4% at the end of 2019, which is primarily reflecting the good business performance of the clients and the Bank and is one of the lowest NPL levels not only in Serbia but in the region as well.

At the end of 2019, the number of digital distribution channel users was 14.32% higher than at the end of 2018, so now almost 300 thousand Erste Bank clients use internet and mobile banking. Erste Bank’s network comprised 88 units at the end of 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.