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Erste Group Bank AG (EBKDY)
OTHER OTC:EBKDY
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Erste Group Bank AG
(OTC:EBKDY)
77Outperform
Erste Group Bank AG (EBKDY) vs. S&P 500 (SPY)
Market Cap
$32.29B
Dividend Yield2.5%
Average Volume (3M)3.65K
Price to Earnings (P/E)10.2
Beta (1Y)0.59
Revenue Growth9.59%
EPS Growth17.05%
CountryUS
Employees45,856
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.03
Shares Outstanding821,028,750
10 Day Avg. Volume4,859
30 Day Avg. Volume3,649
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)1.50
Price to Sales (P/S)0.00
P/FCF Ratio-35.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Erste Group Bank AG Business Overview & Revenue Model
Company DescriptionErste Group Bank AG is a prominent financial services provider in Central and Eastern Europe, headquartered in Vienna, Austria. The bank operates in several sectors including retail banking, corporate banking, and investment banking. Erste Group offers a wide range of financial products and services such as loans, savings accounts, asset management, and insurance solutions. It serves millions of customers across several countries, contributing to the economic development of the region.
How the Company Makes MoneyErste Group Bank AG generates revenue primarily through its core banking activities. Retail banking is a significant source of income, with the bank earning interest on loans and mortgages provided to individual customers. Corporate banking also contributes substantially, with revenue coming from loans, credit services, and financial advisory for businesses. Additionally, the bank earns fees and commissions from asset management, insurance products, and transactional services. Erste Group's strategic partnerships and its regional focus further enhance its ability to capture market opportunities and drive profitability. The bank's investment banking operations, including trading and underwriting services, also play a role in its overall earnings.
Erste Group Bank AG Financial Statement Overview
Summary
Erste Group Bank AG shows a robust financial profile with strong revenue growth and profitability metrics. The balance sheet is stable with prudent leverage, and cash flows are effectively managed, though some historical volatility is noted. Continued focus on operational efficiencies and cash flow stability is recommended.Income Statement
The company has demonstrated strong revenue growth with a TTM revenue increase from the previous year. Gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. However, the EBITDA margin is relatively low, suggesting limited operational efficiency improvements.82
Very Positive
Balance Sheet
Erste Group Bank AG exhibits a strong balance sheet with a healthy equity ratio, suggesting stability and financial resilience. The debt-to-equity ratio is manageable, highlighting prudent leverage levels. Return on equity is robust, indicating effective use of shareholder equity to generate profits.88
Very Positive
Cash Flow
The cash flow statement reflects a solid operating cash flow to net income ratio, showcasing effective cash generation. Free cash flow growth is positive, but historical fluctuations in cash flow suggest potential volatility. The free cash flow to net income ratio is strong, indicating good cash conversion from profits.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 14.17B | 11.06B | 10.29B | 8.39B | 7.60B | 7.16B | Gross Profit |
| 17.12B | 11.06B | 33.67B | 8.39B | 7.60B | 7.16B | EBIT |
| 5.14B | 5.37B | 5.27B | 7.97B | 2.45B | 1.13B | EBITDA |
| 2.86B | 0.00 | 0.00 | 3.57B | 3.29B | 1.72B | Net Income Common Stockholders |
| 3.08B | 3.13B | 3.00B | 2.17B | 1.92B | 783.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 66.09B | 25.13B | 31.51B | 35.68B | 61.92B | 52.60B | Total Assets |
| 342.92B | 353.74B | 337.15B | 323.87B | 307.43B | 277.39B | Total Debt |
| 38.95B | 0.00 | 69.75B | 36.57B | 32.72B | 31.24B | Net Debt |
| -27.15B | -25.13B | 18.32B | -12.63B | -29.21B | -21.37B | Total Liabilities |
| 38.95B | 322.97B | 308.65B | 298.56B | 32.72B | 31.24B | Stockholders Equity |
| 20.29B | 23.14B | 21.65B | 19.35B | 18.00B | 17.34B |
| Cash Flow | Free Cash Flow | ||||
| -1.51B | -9.78B | 2.06B | -9.29B | 10.86B | 23.94B | Operating Cash Flow |
| -735.00M | -9.03B | 2.59B | -8.82B | 11.40B | 24.49B | Investing Cash Flow |
| -6.23B | -850.00M | -599.00M | -233.10M | -483.40M | -351.60M | Financing Cash Flow |
| 1.47B | -1.55B | 2.66B | 8.12B | -1.31B | 1.13B |
Erste Group Bank AG Technical Analysis
Positive
40.33
Price Trends
35.75
Positive
34.09
Positive
30.64
Positive
Market Momentum
1.55
Negative
65.90
Neutral
89.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBKDY, the sentiment is Positive. The current price of 40.33 is above the 20-day moving average (MA) of 37.05, above the 50-day MA of 35.75, and above the 200-day MA of 30.64, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 89.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBKDY.
Erste Group Bank AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $116.86B | 8.34 | 13.25% | 2.17% | 0.27% | 19.44% | |
80 Outperform | $206.83B | 10.87 | 10.30% | 5.57% | -1.91% | -6.79% | |
77 Outperform | $32.29B | 10.23 | 14.29% | 2.50% | 9.59% | 17.05% | |
75 Outperform | $65.71B | 9.98 | 11.92% | 4.75% | 4.07% | 9.97% | |
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% |
* Financial Sector Average
Performance Comparison
EBKDY
Erste Group Bank AG
40.33
15.92
65.22%
HSBC
HSBC Holdings
58.87
17.32
41.68%
ING
ING Groep
21.17
4.38
26.09%
SAN
Banco Santander SA
7.75
2.68
52.86%
Erste Group Bank AG Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 14.83%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
Erste Group demonstrated strong financial performance with improvements in asset quality and a solid capital position allowing for strategic flexibility. However, challenges such as net interest income pressure, higher banking taxes, and uncertainties surrounding a potential Polish acquisition present notable concerns.Q1-2025 Updates
Positive Updates
Strong Financial Results
Erste Group's financial results remained strong despite uncertainties, with quality revenue growth driven by core income such as net interest income and fees. Operating expenses were in line with guidance, and the efficiency ratio was at 48%, well within full-year guidance.
Loan and Deposit Growth
Customer loans grew by 5% year-over-year, with notable growth in the Czech Republic and Croatia. Customer deposits increased by 4.6% year-over-year, with core retail and SME deposits showing strength.
Improved Asset Quality
Asset quality improved with the NPL ratio decreasing to 2.5% and NPL coverage ratio increasing. The Austrian segment showed signs of improvement, with fewer defaults compared to the previous year.
Capital Position and Deployment Options
The CET1 ratio improved to 16.2% pro forma, with a positive impact from Basel IV implementation. The group plans not to operate with a CET1 ratio above 16% by year-end, indicating potential for capital deployment through M&A or increased distributions.
Negative Updates
Net Interest Income Challenges
The net interest margin decreased due to lower market interest rates and higher banking levies, with a notable decline in Austrian retail and SME entities.
Higher Banking Taxes
Increased banking taxes in Austria and Hungary negatively impacted financial results, with Austria's banking tax alone contributing an additional €20 million per quarter.
Potential Risks in Polish Acquisition
Discussions about acquiring a 49% stake in Santander Bank Polska pose uncertainties, particularly regarding regulatory risks such as Swiss franc loan issues and the impact on Erste's risk profile.
Company Guidance
During the Erste Group's First Quarter 2025 Results Conference Call, the management provided a comprehensive update on the financial performance and strategic priorities. The group reported a slight year-on-year revenue growth driven primarily by core income from net interest income and fees, despite a 3% decline in operating results compared to the previous year. The efficiency ratio stood at 48%, aligning with the full-year guidance. The group upgraded its fee income growth forecast from about 5% to more than 5%, showing confidence in achieving its financial goals. Net interest margin was projected around 2.4%, with potential adjustments due to falling market interest rates. The CET1 capital ratio was reported at 15.9%, with a pro forma ratio of 16.2%, reflecting strong internal capital generation and Basel IV implementation benefits. The group also discussed a potential acquisition of a 49% stake in Santander Bank Polska, emphasizing the requirement for the transaction to enhance profitability, EPS accretion, and ROE. If no acquisition occurs by the end of the year, Erste Group plans to focus on aggressive capital distribution, maintaining CET1 levels not exceeding 16%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.