- Customer loans up 6.4% year-on-year to 232.0 billion euros
- Deposits rise 4.7% to 253.0 billion euros
- Taxes on income up 4.8% to 1.1 billion euros and banking levies up 52.0% to 372 million euros
- Markets outside Austria remain key growth drivers, contributing two‑thirds of net profit
- George Invest drives demand for securities savings plans
Erste Group Bank AG (“Erste Group”) can look back on a successful 2025 financial year. The banking group generated a net result of 3.5 billion euros (2024: 3.1 billion euros). This was driven in particular by continued growth in the customer business, as well as by one-off effects. Two-thirds of this net result was contributed by the group’s subsidiary banks outside of Austria. The CET1 ratio increased significantly to 19.3%, thus providing a solid capital base for Erste Group’s acquisition in Poland.
In customer business, loan volume across the banking group increased by 6.4% to 232.0 billion euros (2024: 218.1 billion euros). This growth even reached 10.5% (2024: 5.7%) in the markets outside of Austria. This reflects the macroeconomic momentum: in recent years the CEE region has grown on average at roughly double the GDP growth rate of the eurozone (2025: 2.3% vs. 1.5%). Demand for housing loans increased within the retail banking segment. Corporate customers increasingly requested investment financing.
In addition to higher lending volumes, deposits also increased by 4.7%, rising to 253.0 billion euros (2024: 241.7 billion euros). This was primarily due to higher core deposits in the Czech Republic, Hungary, and Croatia. Supported by the sustained growth in customer business, net interest income increased to 7.8 billion euros (2024: 7.5 billion euros).
“Our results for 2025 demonstrate the strength of our region. Against this backdrop, we are pleased about the successful closing of the acquisition in Poland, which elevates our market position in the region to a new level. This acquisition marks a milestone for our group and was only made possible by the strong performance across all our markets. At the same time, we are aware that integrating a bank of this size requires attention and resources, which is why we are approaching this process with the necessary focus,” says Peter Bosek, CEO of Erste Group.
Investing increasingly attractive to younger audiences
The net fee and commission income increased by 8.6% to EUR 3.2 billion (2024: EUR 2.9 billion), driven by growth in payments, securities, and insurance services. One of the drivers behind this development is the launch of George Invest in Austria and the Czech Republic, a platform specifically designed to engage younger investor segments. Since its introduction, results have been encouraging: in Austria, around 62 percent of securities transactions are now executed by clients under 35, and in the Czech Republic the figure stands at 33 percent. At year-end 2025, Erste Group managed almost two million of securities savings plans, an increase of 25% compared to 1.6 million at year-end 2024. Together with positive market developments, this lifted assets under management (AuM) at Erste Asset Management to 103.9 billion euros (2024: 91.6 billion euros).
Strong capital base driven by positive business development and one-off effects
Operating income increased by 4.3% to 11.7 billion euros (2024: 11.2 billion euros). In line with expectations, operating expenses rose by 5.8% to 5.6 billion euros (2024: 5.3 billion euros), driven primarily by higher personnel and IT expenses, as well as by legal and advisory costs related to the acquisition in Poland. Total risk costs increased to 478 million euros (2024: 397 million euros), as fewer crisis-related risk provisions were released in 2025 (117 million euros) compared to 2024 (271 million euros). The burden from banking levies rose by 52.0% to 372 million euros (2024: 245 million euros). In addition, 67 million euros (2024: 103 million euros) in bank taxes in Slovakia were booked under the line-item taxes on income.
Due to one-off effects such as the sale of the current Česká spořitelna headquarters in Prague, the other operating result improved to -158 million euros (2024: -414 million euros). In 2025, taxes on income amounted to 1.1 billion euros (2024: 1.1 billion euros). Overall, Erste Group generated a net result of 3.5 billion euros (2024: 3.1 billion euros). The CET1 ratio increased significantly to 19.3%, thus providing a solid capital base for the acquisition in Poland.
Stefan Dörfler, CFO of Erste Group, adds: “We have consistently strengthened our capital base and will continue to have a strong CET1 ratio even after accounting for our acquisition in Poland. At the same time, we have significantly expanded our customer business and continue to place a strong emphasis on growth. We will present consolidated figures including Poland when reporting our results for the first quarter of 2026.”
Outlook for 2026
Following the successful acquisition of a controlling 49% stake in Santander Bank Polska in January 2026, Erste Group aims to ensure a smooth integration. The rebranding to “Erste Bank Polska” is scheduled to take place in the second quarter of 2026, following the receipt of shareholder approval at the Polish subsidiary’s extraordinary general meeting on 22 January 2026. The first-time consolidation of the bank in Poland as part of Erste Group will take place in conjunction with the results reported for the first quarter of 2026.
Without taking into account the earnings contribution of the bank in Poland, Erste Group expects loan growth of higher than 5%. On this basis, net interest income growth is projected around 5%, while fee and commission income growth is targeted above 5%. The rise in costs (operating expenses) should be limited to 3%. With this, the cost/income ratio should improve to around 47% in 2026. Risk costs are also expected to stay at very agreeable levels of 20 to 25 basis points.
Erste Group expects a year-on-year increase in earnings per share of more than 20% and an increased return on tangible equity (ROTE) of about 19%, taking the adjusted 2025 net profit of 3.3 billion euros as a starting base and adjusting expected 2026 net profit for extraordinary items connected to the acquisition and first-time consolidation of the bank in Poland.
Entering the Polish banking market ensures access to the largest market in Central Europe and thus provides corresponding growth opportunities. On the back of a better macro backdrop, Erste Group expects the loan volume of the Group including Poland to surpass 285 billion euros. The net interest income is likely to reach north of 11 billion euros, while fee and commission income is expected to come in around 4 billion euros. Costs are seen at about 7 billion euros. Leaving aside the one-off related to first-time consolidation, risk costs are likely to inch up to 25-30 basis points, as the level of risk costs in Poland is somewhat higher than that in other CEE markets.
Reported net profit for Erste Group is forecast somewhat below 4 billion euros, while net profit adjusted for extraordinary items related to first-time consolidation of the bank in Poland is projected at somewhat above 4 billion euros.
Due to the full internal funding of the acquisition in Poland, which required higher profit retention in 2025, Erste Group management will propose a reduced dividend payment of 0.75 euros per share to the annual general meeting. This corresponds to a payout ratio from 2025 net profit after deduction of AT1-dividends of 9.1%, in line with the 2025 dividend policy of limiting the payout ratio to 10%, announced at the time of acquisition.
Additional details on the FY 2025 preliminary results is available from Investor‑Relations at: https://www.erstegroup.com/en/investors