(Adds CFO quote, outlook confirmation, Q1 net interest income)
April 28 (Reuters) - Austrian lender Erste Group exceeded market expectations for first-quarter
earnings on Friday, boosted by higher interest rates in Central
and Eastern Europe.
The bank, which operates in seven countries across the
region, reported a net profit of 593.6 million euros ($653.85
million) in the first quarter, beating analysts' average
estimate of 543.0 million euros provided by the company.
Its net interest income, a key metric for banks, rose 27.1%
year-on-year to 1.77 billion euros in the quarter, slightly
above the 1.72 billion euros expected by analysts.
The group cited favourable interest rate hikes, mainly in
Austria, Hungary and Romania, and a larger customer loan volume
across all markets as reasons for the strong results.
"Our bottom line also benefitted from operating expenses
that were in line with expectations and from a risk environment
that remained benign," Chief Financial Officer Stefan Dörfler
said in a statement.
Dörfler added the group was "well underway" to meet its
full-year guidance.
The group confirmed its 2023 outlook for net loan growth in
the mid-single digits and return on tangible equity of between
13% and 15%.
Global banking shares plunged last month after the collapse
of Silicon Valley Bank and Signature Bank in the U.S. and the
forced takeover of Credit Suisse by UBS in
Switzerland, but markets have since largely calmed.
Erste Group shares have been gradually gaining ground since
the start of this month, after dropping by around 14% in March
following the collapse of SVB.
($1 = 0.9079 euros)
(Reporting by Anna Mackenzie and Philipp Krach in Gdansk;
Editing by Milla Nissi)
philipp.krach@thomsonreuters.com))
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