“The continuation of stable trends and positive financial results delivered by the bank and local EBC Group marked our business performance in 2024. Total lending growth, with new lending volume up in retail and corporate business alike, upward trends in the use of our digital channels where we exceeded one million users in total, as well as stable growth of our deposit base and positive risk costs have further consolidated our position on the local market”, said Christoph Schoefboeck, President of the Management Board of Erste&Steiermärkische Bank d.d. (“Bank”), commenting on the Bank’s performance in 2024. “With the integration of the card issuing part from Erste Card Club (ECC), we made a significant step towards the further improvement of the card operations business. Given our strong capital position, high level of liquidity, and the highest rating among banks in the Croatian market assigned to us by the rating agencies (“A-“, Fitch, 2024), we were capable not only to provide adequate support to our clients, but to provide an additional boost to the continued growth and development of the entire Croatian economy”, Schoefboeck concluded.
HIGHLIGHTS
According to the unaudited preliminary consolidated financial statement, EBC Group’s[1] net profit after minority interests was EUR 247 million, up 2.5% year-on-year from EUR 241 million in 2023. EBC Group’s net interest income was EUR 434 million, up 5.9% from EUR 410 million in 2023. Net fee and commission income in 2024 was EUR 134 million, up 7.2% from EUR 125 million in 2023. Net trading and fair value result was EUR 16 million, up 6.7% from EUR 15 million in 2023.
Positive trends in net profit were driven by increased revenue from ordinary business operations, particularly in the net interest income through the higher lending volume in the retail segment, and especially SME in the corporate segment. At the same time, interest expenses also increased, mainly as a result of higher volumes and interest rates on term deposits. During the same period the cost component also recorded growth, in relative terms at the similar level as revenues did. The increase in general administrative costs was driven by the growth of personnel expenses and other administrative expenses, as a result of the unit cost increase backed by inflation.
EBC Group’s total assets as at 31 December 2024 were EUR 16.5 billion, up 11.9% from EUR 14.8 billion at YE 2023. Total loans to customers as at 31 December 2024 were EUR 9.7 billion, up 5.6% from EUR 9.1 billion at YE 2023. Deposits of EBC Group’s customers as at 31 December 2024 were EUR 12.6 billion, up 10.3% from EUR 11.4 billion at YE 2023.
According to the unaudited preliminary unconsolidated financial statement, comprising the Bank’s result not including subsidiaries, net profit in 2024 amounted to EUR 226 million, up 3.2% from EUR 219 million in 2023. Net interest income rose 6.2%, from EUR 353 million in 2023 to EUR 375 million in 2024, while net fee and commission income rose 12.6%, from EUR 87 million in 2023 to EUR 98 million in 2024, partly as a result of the one-off effect coming from the integration of the card issuing segment from Erste Card Club in the Bank in the last quarter of 2024. Net trading and fair value result was EUR 15 million, up 7.1% from EUR 14 million in 2023.
The Bank’s total assets as at 31 December 2024 were EUR 15.1 billion, up 14.0% from EUR 13.3 billion at YE 2023. Total loans to customers as at 31 December 2024 were EUR 8.6 billion, up 7.8% from EUR 7.9 billion at YE 2023. Deposits of the Bank’s clients as at 31 December 2024 were EUR 11.9 billion, up 10.8% from EUR 10.8 billion at YE 2023.
[1] The consolidated financial statement for the EBC Group includes, in addition to Erste&Steiermärkische Bank d.d., the following affiliates: Erste Nekretnine d.o.o., Erste&Steiermärkische S-Leasing d.o.o, Erste Bank a.d., Podgorica, Erste Card Club d.o.o. and Izbor Nekretnina d.o.o.
STABLE TREND IN NPLs
The stable trend in NPLs (non-performing loans and partially performing loans) continued in 2024. As at 31 December 2024, the NPL ratio at consolidated EBC Group level was 3.1% (3.0% as at 31 December 2023). NPL ratio at Bank level as at 31 December 2024 was 3.1% (2.9% as at 31 December 2023).
MORE THAN 1 MILLION USERS OF DIGITAL CHANNELS IN TOTAL
The Bank’s digital solutions maintained a continued and stable growth trend over the last year. As at 31 December 2024, George online banking had a total of around 550,000 active users, up 34% from 410,000 active users at YE 2023. Total transaction volume of EUR 7.0 billion was up 20.4% compared to 2023. The KEKS Pay app reached the number of 500,000 active users as at 31 Decemeber 2024, up 22% from 410,000 at YE 2023. KEKS Pay’s total transaction volume of EUR 226 million in 2024 was up 51% compared to 2023.
GREEN BOND ISSUE
In January 2024, the Bank issued its inaugural green preferred senior bond on the international capital market. The EUR 400 million bond was issued in a green format under Erste Group’s Sustainable Finance Framework and is the first green bond issued by any issuer in the Republic of Croatia. This issue was printed to fulfil the MREL requirement (Minimum requirement for own funds and eligible liabilities). The funds raised further improved the diversification our funding sources, while being used to promote green and sustainable investments and projects. By the respective, in total eighth issue of EBC’s bonds in the domestic and international capital markets, the Bank has once again confirmed its position as the most active non-government bond issuer in Croatia.