- Loans to individuals and micro customers went up by 7.4% relative to the end of 2019 and amounted to 89.91 billion dinars; deposits of individuals and micro customers rose by 10.8% to 87.60 billion dinars.
- Corporate loans rose by 17.4% relative to the end of 2019 to 93.02 billion dinars; corporate deposits went up by 31.2% to 61.93 billion dinars.
- Net interest income went up by 11.5% relative to the same period of the previous year to 3.89 billion dinars, while net fee and commission income rose by 11.9% to 0.89 billion dinars.
- Net profit amounted to 0.89 billion dinars at the end of Q2 2020. Relative to the same period of 2019, it is down by 18.7%, while at the same time overperforming compared to the initial budget.
- Total assets increased by 15.5%, from 231.45 billion dinars at the end of 2019 to 267.26 billion dinars at the end of Q2 2020.
- NPL ratio at the end of Q2 2020 was 1.1 %.
“Our attention is still primarily directed to the protection of health of our clients and employees, as well as support to businesses and individuals. In the second quarter we focused on continued, committed support to companies, in order for them to preserve their business operations and liquidity, while in the retail area, we were at our clients’ disposal when it came to fulfilling their financial needs, which were largely related to cash and refinancing loans, in a timely and safe manner. More clients recognised the importance and advantages of electronic banking, resulting in an increase in the number of digital channel users by about 16 percent relative to the end of last year.
The moratorium on debt payments, which was used by 90 percent of clients, was successfully implemented during the second quarter, reducing the financial burden on both individuals and businesses in this period, as well as tensions in the market. Nevertheless, the growth of both corporate and retail lending continued, while total deposits rose by a fifth. Entrepreneurs, micro, small and medium-sized enterprises were most interested in liquidity and working capital loans, supported by the guarantee scheme of the Government of Serbia. Three quarters of their requests were related to this type of support, and one quarter to investment loans. In the course of daily, intensive contacts with businesses, we provided them with advisory support tailored to their operations in the current environment, jointly arriving at the ways for them to fulfil their business needs “, stated Slavko Carić, CEO of Erste Bank a.d. Novi Sad.
“Preserving companies’ liquidity will continue to be of key importance in the coming period, during which we will remain at the disposal of government institutions should a need arise for participating in additional support measures, while continuing our long-standing active participation in the programmes of international financial institutions, which are aimed at supporting our economy“, concluded Slavko Carić.
At the end of Q2 2020, total loans to individuals and micro customers went up by 7.4% relative to the end of the previous year to 89.91 billion dinars. In comparison with the end of 2019, total deposits of individuals and micro customers also increased by 10.8% to 87.60 billion dinars.
At the end of Q2 2020, total corporate loans amounted to 93.02 billion dinars, up by 17.4% relative to the end of 2019. Total corporate deposits rose significantly by 31.2% relative to the end of 2019 to 61.93 billion dinars.
Regarding operating results, at the end of Q2 2020 the Bank posted 9.1% more operating income relative to the same period of last year, while operating expenses went down by 4.5%. Relative to the same period of 2019, the Bank’s operating profit posted a 48.9% increase and amounted to 1.74 billion dinars, while at the end of Q2 2019 the Bank recorded an operating result of 1.17 billion dinars.
At the end of Q2 2020, net interest income amounted to 3.89 billion dinars, which is 11.5% more than in the same period of the previous year, when it was 3.49 billion dinars. Net fee and commission income was 11.9% higher and amounted to 0.89 billion dinars, while at the end of the same period of last year, it amounted to 0.79 billion dinars.
At the end of Q2 2020, total net profit amounted to 0.89 billion dinars, down by 18.7% relative to the same period of 2019, when net profit amounted to 1.09 billion dinars, while at the same time, overperforming compared to the Bank’s initial plans, bearing in mind risk costs.
Improved portfolio quality is reflected in the reduction of the NPL ratio from 1.4% at the end of 2019 to 1.1% at the end of Q2 2020.
At the end of Q2 2020, the number of digital distribution channel users was 15.6% higher than at the end of 2019, so now about 345.5 thousand Erste Bank clients use internet and mobile banking. Erste Bank network comprised 90 units at the end of Q2 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.