• Loans to individuals and micro customers went up by 3.7% relative to the end of 2020 and amounted to 100.62 billion dinars; deposits of individuals and micro customers rose by 8.6% to 110.01 billion dinars.
  • Corporate loans rose by 0.4% relative to the end of 2020 to 94.56 billion dinars; corporate deposits rose by 0.9% to 74.94 billion dinars.
  • Net interest income went up by 12.6% relative to the same period of the previous year to 4.38 billion dinars, while net fee and commission income went up by 15.3% to 1.02 billion dinars.
  • Net result amounted to 1.65 billion dinars at the end of Q2 2021, which is a 85.7% better result relative to the same period of 2020.
  • Total assets increased by 3.8%, from 287 billion dinars at the end of 2020 to 298 billion dinars.
  • NPL ratio at the end of Q2 2021 stood at 1.5%.

 

"In the first half of the year, we recorded the continuation of positive trends in all aspects of business, especially in the segment of private individuals and entrepreneurs. We are additionally encouraged by the fact that it was long-term investment loans that dominated in the segment of small and medium-sized enterprises, which is a clear signal that the economy is slowly returning to the path of growth and development from before the crisis caused by the pandemic. The almost double-digit growth of deposits of citizens and micro customers shows that clients have a lot of confidence in our bank, which is proof that we are on the right path and additionally motivates us to be even better in providing advisory and financial support. The growth of net profit of 85.7% compared to the same period last year was partly a result of reduced provisions for potentially uncollectible receivables, given that we were very cautious in the first half of 2020 due to the uncertainty caused by the global health crisis. In parallel with the improvement of our financial results, we continue to pursue responsible business. We are proud and pleased to have signed the second credit line in the amount of 1.2 billion dinars aimed at improving the energy efficiency of households with the European Bank for Reconstruction and Development. Our mission is to create an environment that will encourage more efficient management of resources and energy and create a healthier and better environment for all of us," said Slavko Caric, CEO of Erste Bank a.d. Novi Sad.

 

At the end of Q2 2021, total loans to individuals and micro customers went up by 3.7% relative to the end of the previous year to 100.62 billion dinars. The growth was achieved owing to cash loans granted to citizens and loans for working capital and liquidity approved to entrepreneurs. In comparison with the end of 2020, total deposits of individuals and micro customers also increased by 8.6% to 110.01 billion dinars. 

At the end of Q2 2021, total corporate loans amounted to 94.56 billion dinars, up by 0.4% relative to the end of 2020. Corporate deposits are up, posting growth of 0.9% relative to the end of 2020 to 74,94 billion dinars.

Regarding operating results, at the end of Q2 2021 the Bank posted 13.9% more operating income relative to the same period of the previous year, while operating expenses went up by 11.5%. Relative to the same period of 2020, the Bank's operating profit rose by 18.5% to 2.06 billion dinars, while at the end of the same period of 2020, the Bank recorded an operating result of 1.74 billion dinars.

At the end of Q2 2021, net interest income amounted to 4.38 billion dinars, which is 12.6% more than in the same period of the previous year, when it was 3.89 billion dinars. Net fee and commission income was 15.3% higher and amounted to 1.02 billion dinars, while at the end of the same period of the previous year, it amounted to 0.89 billion dinars.

At the end of Q2 2021, total net result amounted to 1.65 billion dinars, that is a 85.7% better result relative to the end of the same period of 2020, when net result was 0.89 billion dinars. This significant change in the net result was recorded primarily due to lower cost of risk. Namely, due to the more favourable health situation in 2021 and positive macroeconomic forecasts, the bank took a more realistic stand and allocated lower provisions compared to the previous year, when, due to uncertainty, it budgeted higher risk costs. In addition, the growth of net profit was spurred by the growth of all income categories (interest, fees, trading). The NPL ratio stands at 1.5%, which is among the lowest in the market. 

At the end of Q2 2021, the number of digital distribution channel users was 8.9% higher than at the end of 2020, so now about 415 thousand Erste Bank clients use internet and mobile banking. The Erste Bank network comprised 89 units at the end of Q2 2021.

 

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.