Erste Group Bank (EBS) Q4 2025 (Media) earnings summary

Executive summary

• Achieved strong results in 2025, driven by robust loan and deposit growth, successful acquisition and integration of Santander Bank Poland, and digital innovation targeting younger clients.

• Net profit rose 12.3% year-over-year to EUR 3,510 million, supported by higher net interest and fee income, with notable growth in Central and Eastern Europe, especially the Czech Republic and Slovakia.

• Operating income increased 4.3% to EUR 11,659 million, while operating expenses rose 5.8% to EUR 5,583 million, mainly due to integration, personnel, and IT costs.

• Maintained a conservative business mix and strong capitalization, with CET1 ratio at 19.3% pre-Poland consolidation.

• Digital innovation advanced, with AI-powered services and expanded asset management offerings.

Financial highlights

• Loans grew by 6.4% year-over-year to EUR 232.0 billion, with Austria up 3.3% and Czech Republic up 12.3%.

• Deposits increased by 4.7% to EUR 253.0 billion, despite a slight dip in Austria.

• Net interest income rose 3.5% to EUR 7,788 million, and net fee and commission income increased 8.6% to EUR 3,191 million.

• Operational income reached EUR 11,659 million, and net profit was EUR 3,510 million, up 12.3% year-over-year.

• Operational expenditure increased by 5.8% to EUR 5,583 million, reflecting integration and investment costs.

Outlook and guidance

• Integration of Erste Bank Polska expected to add EUR 30 billion in loans, with consolidation in Q1 2026.

• 2026 guidance targets ROTE of about 19%, EPS growth over 20% (adjusted for one-offs), net interest income above EUR 11 billion, and fee income around EUR 4 billion.

• Cost/income ratio projected to improve to about 45% in 2026, with cost growth expected at ~3%.

• Risk costs projected at 20–30 basis points, with a one-off EUR 300 million ECL provision for Poland.

• Dividend per share for 2025 proposed at EUR 0.75, with payout ratio capped at 10% and plans for restoration in 2026.