• Loans to individuals and micro customers went up by 13.7% relative to the end of 2019 and amounted to 95.20 billion dinars; deposits of individuals and micro customers rose by 19% to 94.02 billion dinars.
• Corporate loans rose by 17.2% relative to the end of 2019 to 92.86 billion dinars; corporate deposits went up by 51% to 71.25 billion dinars.
• Net interest income went up by 12.8% relative to the same period of the previous year to 6.04 billion dinars, while net fee and commission income rose by 10.2% to 1.38 billion dinars.
• Net profit amounted to 2.02 billion dinars at the end of Q3 2020, up by 3.7% relative to the same period of 2019.
• Total assets increased by 21.9%, from 231.45 billion dinars at the end of 2019 to 282.1 billion dinars at the end of Q3 2020.
• NPL ratio at the end of Q3 2020 was 1.1%.

“During the third quarter our focus was again on supporting businesses in preserving their jobs and business activity during the current crisis. It is precisely for that reason that we were the first bank to sign with the European Investment Bank a credit line supporting companies operating in the sectors particularly affected by the pandemic crisis and we will be at the disposal of our clients to help mitigate its consequences as much as possible.

The fact that all of us together are on the right track when it comes to the measures we have taken is demonstrated by sole proprietorships, micro, small and medium-sized companies maximising the opportunity to take loans under the guarantee scheme of the Government of Serbia, while large companies used the credit support for new investment, where we are seeing an increase in their borrowing by a quarter relative to the end of 2019“, stated Slavko Carić, CEO of Erste Bank a.d. Novi Sad.

“In our work with private individuals, our main goal is to ensure the welfare of our customers and we are grateful to all our colleagues both from the branches and from all sectors of the bank, who have shown exceptional solidarity, courage and responsibility in this period. This has been recognised by our clients, who have increased their deposits by almost 20 percent, while the total growth of both corporate and retail loans and deposits is double-digit. In everything we do, we, first of all, want to provide advice to our clients so that they can make best financial decisions for themselves and their business. Supporting their financial health remains in our focus“, concluded Slavko Carić.

At the end of Q3 2020, total loans to individuals and micro customers went up by 13.7% relative to the end of the previous year to 95.20 billion dinars. In comparison with the end of 2019, total deposits to individuals and micro customers also increased by 19% to 94.02 billion dinars.

At the end of Q3 2020, total corporate loans amounted to 92.86 billion dinars, up by 17.2% relative to the end of 2019. Corporate deposits are rising and increased significantly by 51% relative to the end of 2019 to 71,25 billion dinars.  

Regarding operating results, at the end of Q3 2020 the Bank posted 9.2% more operating income relative to the same period of last year, while operating expenses went down by 1.2%. Relative to the same period of 2019, the Bank’s operating profit posted a 34.2% increase and amounted to 2.84 billion dinars, while at the end of Q3 2019 the Bank recorded an operating result of 2.12 billion dinars.                  

At the end of Q3 2020, net interest income amounted to 6.04 billion dinars, which is 12.8% more than in the same period of last year, when it was 5.36 billion dinars. Net fee and commission income was 10.2% higher and amounted to 1.38 billion dinars, while at the end of the same period of last year, it amounted to 1.26 billion dinars.

At the end of Q3 2020, total net profit amounted to 2.02 billion dinars, up by 3.7% relative to the same period of 2019, when net profit amounted to 1.95 billion dinars. 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 Q3 2020.

At the end of Q3 2020, the number of digital distribution channel users was 21.7% higher than at the end of 2019, so now about 364 thousand Erste Bank clients use internet and mobile banking. Erste Bank network comprised 88 units at the end of Q3 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.