Erste Group Profit Almost Halved on Pandemic Provisions
February 26 2021 - 2:17AM
Dow Jones News
By Joshua Kirby
Erste Group Bank AG said Friday that its net profit plunged in
2020, largely as a result of increased provisions relating to the
coronavirus pandemic.
The Austrian bank's net profit for the year came to 783.1
million euros ($953.5 million), down from EUR1.47 billion in 2019.
Risk provisions of close to EUR1.3 billion for loan losses in the
aftermath of the pandemic hit the result, Erste Group said.
Net interest income was up slightly at EUR4.77 billion, while
net fee and commission income slipped 1.2% to EUR1.98 billion.
Operating income came to EUR7.16 billion, down from EUR7.23 billion
previously.
In line with European Central Bank recommendations, the bank
will propose a dividend of EUR0.50 a share for the year at the next
general meeting, and will also reserve up to EUR1.00 a share for a
future potential payout.
Write to Joshua Kirby at joshua.kirby@dowjones.com;
@joshualeokirby
(END) Dow Jones Newswires
February 26, 2021 02:02 ET (07:02 GMT)
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