BREAKING NEWS
This content is not available in your region

Erste Group reports Q1 beat thanks to recovery in main markets

Access to the comments Comments
Erste Group reports Q1 beat thanks to recovery in main markets
Erste Group reports Q1 beat thanks to recovery in main markets   -   Copyright  (c) Copyright Thomson Reuters 2021. Click For Restrictions - https://agency.reuters.com/en/copyright.html
Text size Aa Aa

(Reuters) – Austrian bank Erste Group reported better-than-expected first-quarter profit as recovery in central and eastern Europe economies allowed it to reduce risk provisions.

The retail-focused bank’s profitability was hit hard as the coronavirus pandemic forced it to multiply provisions for loan losses, but most of the countries in which it operates have been recording declines in infection rates throughout April.

“We’re off to a good start in 2021, which promises to be a solid rebound year,” finance chief Stefan Doerfler said in a statement.

Austria’s largest bank, which operates in eastern Europe and its home market of Austria, said its first-quarter net profit came in at 335 million euros ($405.85 million), above analysts’ average forecast of 305 million euros, based on Refinitiv data.

Positive contributions came primarily from the release of provisions for loans in Austria and Romania and the recovery of loans already written off in Hungary and Austria, Erste Group said.

The Vienna-based group added it recorded significant deposit inflows and solid lending growth across all of its markets.

($1 = 0.8254 euros)

(Reporting by Zuzanna Szymanska in Gdansk; Editing by Tomasz Janowski)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.