Austrian lender Erste Group exceeded fourth-quarter operating profit expectations on Friday, driven by increased net interest income. The bank, headquartered in Vienna, reported an operating profit of 1.39 billion euros ($1.44 billion), surpassing analysts' anticipated 1.34 billion euros. Net interest income (NII), which reflects earnings on loans minus deposit expenses, rose by 7.3% year-on-year to 1.94 billion euros.
CEO Peter Bosek highlighted, "Our results demonstrate our strong presence in Europe's growth region, with two-thirds of our profits originating from our banks in Central and Eastern Europe." Looking ahead to 2025, the company targets a return on tangible equity of about 15% and aims for the operating result to remain largely consistent with 2024.
Erste Group also outlined plans to pay a dividend in 2024 equivalent to 41.2% of its adjusted annual net profit and initiate a share buy-back program equal to 23.7% of adjusted net profit.
(Note: $1 = 0.9630 euros)