The most significant GDP growth rates are expected for Hungary (+5.5%) and Serbia (+5.0%), while Croatia’s and Slovakia’s economies are seen growing over 4%, followed closely by the Czech Republic, with a projected GDP growth of 3.9%.
Based on these economic forecasts, Erste Group expects better financial results in 2021.
Erste Group CEO, Bernd Spalt, said the group would also see a clear change in the dynamics of the evolution of its profits.
The Group’s net profit fell by 46.7% to EUR783 million in 2020, against the backdrop of setting up provisions to cover a high risk, but it is expected to grow again in 2021.
Based on domestic predictions, Erste Group expects in 2021 both an increase in the volume of loans, and in the net commission income obtained from asset management, brokerage services on the capital market and insurance brokerage services. Consequently, despite negative interest rates in the euro area, the lender can expect increased operating profit. Also, it estimates lower risk costs in 2021. Overall, Erste Group aims to improve its net profit in 2021.