(Reuters) -Erste Group Bank raised its full-year forecast for net interest income and a key profit metric after reporting second-quarter results that beat expectations on Friday, largely due to strong
Erste Group Bank Upgrades 2025 Outlook Following Strong Q2 Results
(Reuters) -Erste Group Bank raised its full-year forecast for net interest income and a key profit metric after reporting second-quarter results that beat expectations on Friday, largely due to strong growth in its customer business.
The Vienna-based bank expects a more than 15% return on tangible equity for the year, up from a previous forecast of around 15%, reflecting better loan volume and profit-and-loss dynamics, it said in a statement.
It expects an increase in net interest income, having flagged that it would be flat.
However, Erste sees operating profit broadly unchanged or slightly down compared to 2024, from a previous expectation that it would be stable.
Its shares rose 3% at the open before retreating to trade flat on the day.
Erste reported net profit of 921 million euros ($1.1 billion), an 8.8% increase compared to 846 million euros in the same period last year. Analysts had forecast net profit of 815.9 million euros, according to a company-provided consensus.
Operating profit also increased by 5% to 1.51 billion euros, beating analysts' expectation of 1.47 billion euros.
The results were driven largely by strong growth in its customer business, which compensated for declining interest rates.
"Our strong results confirm that we are on the right strategic path," Chief Executive Peter Bosek said in a statement.
"With the planned acquisition in Poland, we are investing in one of Europe's most dynamic growth markets," Bosek added, citing the acquisition of a 49% stake in Santander's Polish bank.
($1 = 0.8764 euros)
(Reporting by Alexandra Schwarz Goerlich, Writing by Isabel Demetz; Editing by Emelia Sithole-Matarise)
