Erste Bank late last month reported a net profit increase of 34.1 percent to 271.9 million Euro (USD 391.5 million) for the third quarter of 2007, compared with the same period last year. Profits were up three percent compared with the previous quarter.
The third-quarter operating result rose to 613 million Euro from 587.3 million Euro the previous year. The bank pulled through the traditionally weak third quarter buoyed by a strong performance of its Central European subsidiaries, it was reported. “We are particularly pleased with the quarterly contributions from Hungary, Croatia and especially the Czech Republic,” Erste Bank chief executive Andreas Treichl was quoted as saying in a statement.
The results of the Romanian Bank Comericiala Romana (BCR) in particular showed that the bank was on the right track, dpa reported. Erste Bank reported an increase in net profits after minority interests by 27.9 percent to 837.9 million Euro for the first nine months of 2007, due to the strong performance of its subsidiaries in Central Europe, in particular Romania and the Czech Republic.
Without BCR, that expanded profits faster than expected, profits were up 5.8 percent to 693 million Euro. Pre-tax profits were up 29.1 percent to 1.35 billion Euro, including BCR. Operating results were up 28.9 percent to 1.81 billion Euro. Net interest income rose 25.8 percent to 2.44 billion Euro. The bank did not remain unaffected by the banking turbulences of the previous months. The effects of the US loan crisis led to a write-down of 20 million Euro in the value of its investments, Erste Bank was cited as saying. The bank said it still expected net profit to grow by 25 percent in 2007.