More loans granted

Erste Group Bank with a profit of 3.1 billion euros

(Bild: APA/Helmut Fohringer)

Erste Group Bank can look back on the past year with satisfaction: The bank generated more income and profit in the 2024 financial year. It benefited from the fact that customers demanded more loans.

Overall, Erste Group generated a net profit of EUR 3.1 billion in the 2024 financial year, an increase of 4.3% on the previous year. The subsidiaries in Central and Eastern Europe in particular are on the rise. "Two thirds of our profit comes from our banks in Central and Eastern Europe," says Bank CEO Peter Bosek.

The "pursuit of prosperity in these regions" is unbroken, says Bosek, who still sees room for improvement in the region. "This is also where the future potential lies."

More loans last year
Customers are currently keen to invest: demand for loans increased last year. The customer loan volume increased by just under 5 percent to EUR 218.1 billion in 2024. "In the wake of the interest rate cuts, the investment activity of private households and companies is increasing," explains Erste Group CFO Stefan Dörfler.

Share price up significantly
2024 was also a positive year for Erste Group Bank on the stock market. The share price has climbed significantly, as can be seen in the chart below. The bank intends to distribute a regular dividend of 41.2% of adjusted profit for the past financial year 2024.

Bank tax could rise sharply
What is Erste Group's position on the much-discussed bank tax? Erste Group currently pays a bank tax in Austria, Romania and Slovakia. While EUR 40 million was incurred in Austria in the previous year, it amounted to EUR 37 million in Romania and EUR 103 million in Slovakia. In Austria, the tax is now likely to rise sharply.

In its government program published on Thursday, the future black-red-pink government envisages a bank levy for the entire sector of EUR 500 million in 2025 and EUR 500 million in 2026. After that, the levy is set to fall to 200 million euros.