• Loans to individuals and micro customers went up by 3.3% relative to the end of 2019 and amounted to 86.48 billion dinars; deposits of individuals and micro customers rose by 2.3% to 80.83 billion dinars.
• Corporate loans rose by 8.2% relative to the end of 2019 to 85.69 billion dinars; corporate deposits rose by 24% to 58.52 billion dinars.
• Net interest income went up by 11.4% relative to the same period of 2019 to 1.92 billion dinars, while net fee and commission income went up by 30.7% to 0.46 billion dinars.
• Net profit amounted to 0.79 billion dinars at the end of Q1 2020, up by 25.4% relative to the same period of 2019.
• Total assets increased by 11.1%, from 231.45 billion dinars at the end of 2019 to 257.02 billion dinars at the end of Q1 2020.
• NPL ratio at the end of Q1 2020 was 1.3%.

“Although the first quarter was off to a good start, with an expected further increase in the activities of businesses and citizens, the current situation caused by the COVID-19 pandemics has caused difficulties in the production and movement of goods and services, affecting company liquidity.

Since the pandemics was declared, our focus has primarily been on the protection of health of our employees and clients, as well as on the provision of conditions for smooth conduct of payment operations, outgoing and incoming payment transactions. This is also our obligation in view of our status as a systemic bank in the Serbian market, as well as in view of the tradition and stability of Erste Group as one of the largest banking groups in Central and Eastern Europe. Intensive cooperation with the government authorities has contributed to the assistance package offered to businesses by the Government of Serbia, in which we are actively involved, being one of the most significant in the region as a share in expected GDP“, stated Slavko Carić, CEO of Erste Bank a.d. Novi Sad.

“We expect the effects of the current crisis to be most visible in the upcoming period, when we shall be able to know more precisely the effects on various industries. It is certainly encouraging that certain sectors and macroeconomic indicators have not been greatly affected. The best example are infrastructural projects, where, according to official announcements, we see continuous activity, while, on the other hand, indicators such as the number of unemployed have not increased significantly. One of the reasons for such a development are the aforementioned stimulus measures.

In the forthcoming period, we shall focus on providing support to customers in maintaining their liquidity, as well as ensuring that they can safely and smoothly conduct most of their banking transactions, using digital channels“, Slavko Carić concluded.

At the end of Q1 2020, total loans to individuals and micro customers went up by 3.3% relative to the end of previous year to 86.48 billion dinars. In comparison with the end of 2019, total deposits of individuals and micro customers also increased by 2.3% to 80.83 billion dinars.

At the end of Q1 2020, total corporate loans amounted to 85.69 billion dinars, up by 8.2% relative to the end of 2019. Corporate deposits rose significantly by 24% relative to the end of 2019 to 58.52 billion dinars.

Regarding operating results, at the end of Q1 2020 the Bank posted 12.8% more operating income relative to the same period of last year, while operating expenses went down by 8.4%. Relative to the same period of 2019, the Bank's operating profit posted a 76.2% increase and amounted to 0.99 billion dinars, while at the end of Q1 2019 the Bank recorded an operating result of 0.56 billion dinars.

At the end of Q1 2020, net interest income amounted to 1.92 billion dinars, which is 11.4% more than in the same period of previous year, when it was 1.73 billion dinars. Net fee and commission income was 30.7% higher and amounted to 0.46 billion dinars, while at the end of the same period of last year, it amounted to 0.35 billion dinars

At the end of Q1 2020, total net profit amounted to 0.79 billion dinars, up by 25.4% relative to the same period of 2019, when net profit amounted to 0.63 billion dinars. Improved portfolio quality is reflected in the reduction of the NPL ratio from 1.4% at the end of 2019 to 1.3% at the end of Q1 2020.

At the end of Q1 2020, the number of digital distribution channel users was 4.6% higher than at the end of 2019, so now almost 313 thousand Erste Bank clients use internet and mobile banking. Erste Bank network comprised 88 units at the end of Q1 2020.

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.