Erste Group Bank (EBS) Q2 2025 (Media) earnings summary

Executive summary

• Announced acquisition of a 49% stake in Santander Bank Polska, marking entry into Poland, the largest market in the group, and the biggest investment in company history.

• Strong top-line performance led to a guidance upgrade, with net interest income and fees both rising year-over-year and quarter-over-quarter.

• Net profit for the first six months of 2025 reached EUR 1,665 million, up 2.2% year-over-year, with robust growth across all core markets.

• Operating expenses increased, mainly due to higher personnel, IT, marketing, and consulting costs.

• Risk costs remained moderate, with only a slight increase due to lower overlay releases.

Financial highlights

• Net interest income rose 2.7% year-over-year and 2.3% quarter-over-quarter, mainly due to lower deposit costs in key markets.

• Net profit for Q2 25 reached €921m, up 24% sequentially and 8.9% year-over-year.

• Earnings per share rose to €2.11 in Q2 25 from €1.82 in Q1 25 and €1.87 in Q2 24.

• Assets under management reached nearly €96 billion, with expectations to surpass €100 billion if markets remain positive.

• Cost/income ratio stood at 47.7% in H1 2025, with improvement to 45.1% in Q2 25.

Outlook and guidance

• 2025 guidance upgraded: loan growth above 5%, net fee income growth above 5%, cost/income ratio below 50%, risk costs about 20 basis points, and return on tangible equity above 15%.

• CET1 ratio target raised to above 18.25% ahead of Santander Polska consolidation; 2026 target confirmed at above 14.25%.

• Dividend payout temporarily reduced to support the Polish acquisition, with a return to usual policy expected thereafter.

• Risk factors include political, regulatory, geopolitical, economic, and competition risks, as well as indirect effects from international conflicts.