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# Erste Group Reports Q1 2025 Net Profit of €743 Million as Banking Levies Jump 40% Year-on-Year
- URL: https://www.theglobalbanker.com/erste-group-q1-2025-net-profit-743-million-banking-levies-jump-40-percent/
- Published: 2025-04-30T14:18:00.000Z
- Updated: 2026-10-02T13:58:11.000Z
- Description: Erste Group reported Q1 2025 net profit of €743m, down 5% year-on-year but up 22% sequentially, as a 40% rise in banking levies offset 9.5% fee income growth and a CET1 of 15.9%.
- Author: TGB Editorial Team
- Tags: Banking News, Europe, #archive

Erste Group Bank reported net profit of €743 million for the first quarter of 2025, a 5% year-on-year decline but a 22% sequential improvement from the fourth quarter of 2024\. Return on tangible equity stood at 15.2%, the bank confirmed in a statement published on its investor relations page.

The CET1 capital ratio reached 15.9% on a reported basis and rose to 16.2% on a pro-forma basis. The group operates in Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia, and Serbia. 

#### FEE INCOME AND BANKING LEVIES

Fee income rose 9.5% year-on-year to €780 million. Net interest income edged 1.1% higher to €1.872 billion, and total operating income for the quarter reached €2.802 billion. The cost-to-income ratio was 48.0%.

Erste paid €121 million in such charges during the quarter, a 40% increase year-on-year, mainly because Austria temporarily raised its banking tax (EUR 34 million versus EUR 10 million) and the charge in Hungary rose to EUR 78 million (EUR 67 million). 

#### RISK COSTS

The risk cost ratio was 0.15% in the quarter, below Erste's full-year 2025 guidance of about 0.25%.