The bank’s operating profit fell 4.3% to EUR3.47 billion, due to 3.3% lower operating income. The decline in revenue to EUR7.23 billion was due to lower net interest income and lower net fee and commission income, which were not fully offset by a rise in the net trading result.
The operating costs were also on a downward trend, falling 2.4% year-on-year to EUR3.76 billion.
Andreas Treichl, chief executive officer of Erste, said the bank recorded a “solid bottom-line result considering the economically challenged environment and net negative one-off effects of EUR361 million – including banking taxes in the amount of EUR187 million.”
Among the one-off effects, Erste mentioned a goodwill adjustment of EUR469.4 million for BCR, its Romanian unit.
Treichl also said the bank made progress in Romania and posted an excellent result in the Czech Republic.
The management will therefore propose a dividend payment of EUR0.4 per share, totaling EUR158 million.
Erste Group expects a slight improvement in economic performance for Central and Eastern Europe in 2013, even though growth will remain moderate, the bank said in a news release.
“Accordingly, Erste Group targets a stable operating result for 2013. For group risk costs a double-digit percentage decline is expected for 2013, mainly due to the likely improvement of the risk situation in Romania. Erste Group continues to expect that its Romanian subsidiary BCR will return to profitability in the financial year 2013,” the statement reads.
Erste is listed on the Vienna, Prague and Bucharest stock exchanges. Wednesday in Bucharest, Erste closed at RON102.6, up 0.88% on the day.