Erste Group Bank (EBS) Q1 2026 earnings summary

Executive summary

• Net profit for Q1 2026 rose 18.2% year-over-year to EUR 879–944 million, driven by the consolidation of Erste Bank Polska and strong core market performance, despite one-off integration and risk costs.

• Operating income increased 40.5% to EUR 3,939 million, with Poland contributing EUR 901 million.

• Integration costs of EUR 30 million and higher personnel and administrative expenses were recorded due to the Poland acquisition.

• Cost/income ratio improved to 45.0% from 48.0% year-over-year.

• Total assets increased 22.1% to EUR 450 billion, mainly due to the consolidation of Erste Bank Polska.

Financial highlights

• Net interest income surged 42.8% year-over-year to EUR 2,674 million, with EUR 681 million from Poland; net fee and commission income grew 23.7% to EUR 965 million.

• Operating profit (excluding Poland) set a new record, supported by strong NII, fee growth, and trading results.

• Customer loans (excluding Poland) up 1.5% year-to-date; including Poland, up 18.8%; customer deposits (excluding Poland) up 3.2%, including Poland up 24.4%.

• NPL ratio stable at 2.4%; NPL coverage ratio at 67.9%.

• CET1 ratio at 14.5%–14.8% post-acquisition, down from 19.3% due to the Polish consolidation.

Outlook and guidance

• 2026 guidance confirmed: NII above EUR 11 billion, fee income around EUR 4 billion, costs about EUR 7 billion, cost/income ratio at 45%, and risk costs at 25–30 bps.

• Return on tangible equity targeted at around 19%, with EPS growth above 20% (adjusted for extraordinary items).

• Loan growth target of more than 5% excluding Poland, with total loan stock expected to exceed EUR 285 billion by year-end.

• Reported net profit for 2026 forecast just below EUR 4 billion; adjusted net profit projected above EUR 4 billion.

• CET1 ratio expected to increase, supporting capital return and M&A flexibility.