Erste Group Bank (EBS) Q4 2025 earnings summary

Executive summary

• Achieved record revenues and net profit in 2025, with net profit rising 12.3% year-over-year to EUR 3.51 billion, driven by strong core income lines, especially in the Czech Republic and Slovakia, and improved cost management.

• Robust revenue momentum in Q4 2025, with NII and fee income reaching new records, supporting profit growth both quarter-over-quarter and year-over-year.

• Successfully expanded growth footprint with acquisition of a controlling stake in a Polish bank, to be consolidated from Q1 2026.

• Outperformed upgraded financial guidance, with robust loan and deposit growth across core markets, especially in CEE.

• Maintained strong capital position, CET1 ratio at 19.3% at year-end 2025.

Financial highlights

• Net profit reported at EUR 3.51 billion, up 12.3% year-over-year; underlying net profit at EUR 3.3 billion after adjusting for one-offs.

• Net interest income reached EUR 7.788 billion, up 3.5% year-over-year; net fee income hit EUR 3.191 billion, up 8.6% year-over-year.

• Operating result improved to EUR 6.076 billion, with cost/income ratio below 48%.

• Return on tangible equity increased to 16.6% from 16.3% a year ago.

• Customer loans grew by 6.4% (EUR 14 billion), deposits up 4.7% (EUR 11 billion); NPL ratio improved to 2.4% year-over-year.

Outlook and guidance

• 2026 guidance: Return on Tangible Equity targeted at 19%, EPS growth above 20%, net profit above EUR 4 billion (adjusted).

• Net Interest Income expected to exceed EUR 11 billion, fee income around EUR 4 billion, costs about EUR 7 billion.

• Organic loan growth targeted above 5% for 2026.

• Risk costs projected at 25-30 basis points including Poland, with a EUR 300 million one-off ECL provision from the Polish acquisition.

• Cost/income ratio projected to improve to about 45% in 2026; cost inflation to be limited to 3%.