Erste Bank reports better than expected 9M2004 results

This morning EB released its 9M 2004 consolidated IFRS results above the market and our expectations. Net profit reached EUR 382.6m, up 50% y-o-y; above the market expectation of EUR 373m. NI for 3Q04 reached its highest level in the history of the bank at EUR 142.4m, ahead of the expected EUR 132m. Pre-tax profit increased to EUR 769.6m, up 31%, compared to an expected EUR 740.3m. Net interest income rose 3.0% to EUR 1993.7m, while net commission income increased 17% to EUR 851.8m. Net trading result declined less than expected to EUR 156.2m. Net interest margin remained stable at 2.20% from 1H04, while the C/I ratio slightly worsened to 64.5%. The results benefited from a strong contribution from Central European units and improved financials at the Austrian business. CEO A. Treichl confirmed the bank’s target of a full-year net profit of EUR 500m. A conference call takes place today at 3:30pm CET. The dial-in telephone No. for  the UK/Europe is +44 20 7984 7582 and for  the US +1 718 354 1158.

Tomáš Gatěk, Patria Finance