Erste Group Reports Q1 2025 Net Profit of €743 Million as Banking Levies Jump 40% Year-on-Year

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%.