Austria’s Erste Bank has posted a 10 percent
rise in first quarter net profits to €255.2 million ($339.8
million) from €232.1 million in the first quarter of 2009 after a
slowing of loan losses.
Customer deposits increased 3.2 percent to
€115.6 billion in the first quarter, while lending rose by only 0.9
percent, helping Erste improve its loan-to-deposit ratio to 112.7
percent from 115.3 percent a year ago.
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Andreas Treichl, chief executive of the bank
said Erste had made a strong start to 2010 supported by an
improvement in the bank’s CEE arm.
Although he added that the bank expects risk
costs to remain elevated for the rest of the year but had steadied
in the last quarter.
Provisions for loan losses were 13 percent
lower than in the fourth quarter of 2009 quarter, the first fall in
a year.
“While these positive developments have not
yet translated into a meaningful revival of credit growth, they
underpinned the continued stabilisation in asset quality,” Triechl
said.
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