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Erste Group Bank AG (EBKDY) AI Stock Analysis

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EBKDY

Erste Group Bank AG

(Other OTC:EBKDY)

Select Model
Rating:62Neutral
Price Target:$67.00▲(2.34% Upside)
Action:reiterated
Date:11/06/26

The score is led by a strong and upgraded outlook from the latest earnings call, supported by reasonable valuation. Offsetting this, financial quality is held back by highly volatile and recently weak cash-flow metrics, and technical signals are mixed with negative MACD and price below key intermediate moving averages.

Positive Factors
Earnings and Loan Growth OutlookThe upgraded targets point to durable expansion in lending, net interest income and fee generation rather than reliance on a single revenue stream. Continued loan growth and operating leverage could support stronger earnings power and reinforce Erste’s position across its regional banking markets.
Negative Factors
Unstable Cash GenerationThe sharp recent deterioration and historical volatility in operating and free cash flow reduce confidence that reported profitability consistently converts into cash. Persistent instability could constrain internal funding flexibility and make earnings quality more sensitive to balance-sheet movements.

Erste Group Bank AG (EBKDY) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%EBKDY+24.74%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$101.45B
Dividend Yield
0.67%
Average Volume (3M)
53.56K
Price to Earnings (P/E)
11.8
Beta (1Y)
0.87
Revenue Growth
19.99%
EPS Growth
33.97%
Country
US
Employees
49,024
Sector
Financial
Sector Strength
68
Industry
Banks - Regional

Erste Group Bank AG Business Overview & Revenue Model

Company Description

Erste Group Bank AG, a venerable financial institution established in 1819 and headquartered in Vienna, Austria, delivers a broad spectrum of banking and financial solutions. The company serves a diverse clientele that includes individual consumers,...

How the Company Makes Money

Erste Group Bank AG makes money primarily by earning spread-based and fee-based income from a diversified banking model: 1) Net interest income (lending and deposits): The largest driver for most universal banks is typically net interest income—the d...

Erste Group Bank AG Earnings Call Summary

Earnings Call Date:Oct 30, 2026(Q3-2026)|% Change Since:9.22%|Next Earnings Date:Feb 25, 2027
Earnings Call SentimentPositive

The call was strongly positive overall. Erste Group reported record quarterly revenue, operating profit, net profit, returns, fee income, and cost efficiency, while upgrading several 2026 targets and confirming net profit above EUR 4 billion. Risk costs and asset quality remained favorable, loan growth was robust, and management expressed confidence in continued business momentum. The main challenges were lower trading and fair value income, deposit and competitive pressures, the temporary CET1 and RWA effects, Polish campaign and integration-related items, the upcoming Czech pension-fee impact, and continued macroeconomic uncertainty. These lowlights were explicitly acknowledged but did not outweigh the breadth of the reported achievements and upgraded outlook.

Positive Updates

Record Quarterly Financial Performance
Erste Group reported record revenues, a quarter-on-quarter decline in costs, record operating profit above EUR 2.3 billion, and record quarterly net profit above EUR 1.1 billion.

Negative Updates

Lower Trading and Fair Value Result
The quarterly trading and fair value result was lower and normalized to the lower end of the EUR 150 million-EUR 200 million quarterly run rate. The decline was driven by fair valuation volatility in the Hungarian loan portfolio.

Company Guidance

For 2026, Erste expects organic loan growth of 6%-8%, “towards the upper end” of that range excluding Erste Bank Polska, with year-end net loan stock “north of EUR 290 billion”; net interest income should increase “above 6%” excluding Erste Bank Polska and exceed the enlarged-group target of EUR 11 billion “by a comfortable margin”; fees ex-Polska should grow “by about 10%,” while fees including Polska remain “about EUR 4 billion”; the cost-income ratio should be “below 46%” ex-Polska and “lower than 45%” including Polska; costs remain “about EUR 7 billion” on a fixed adjusted basis, with roughly a 3% cost uplift ex-Polska, and Polish integration costs were forecasted at up to EUR 180 million; risk costs including Polska are targeted at “the lower end” of the 25 basis points-30 basis points range; group NPL ratio is expected to stay “more or less at current levels” and NPL coverage is projected “somewhere around 70%”; return on tangible equity should be higher than 20%, earnings per share uplift higher than 20%, and reported net profit higher than EUR 4 billion, while the 14.25% CET1 management target remains unchanged as a base case; detailed 2027 guidance will be provided with fourth quarter results at the end of February.

Erste Group Bank AG Financial Statement Overview

Summary

Profitability is solid (income statement score 74) with healthy margins and returns, and the balance sheet is adequately capitalized (score 66) though meaningfully leveraged. The main drag is cash-flow quality (score 38): operating/free cash flow has been highly volatile with a sharp TTM deterioration, which lowers confidence in consistency despite steady reported earnings.

Income Statement

74Positive

Balance Sheet

66Positive

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue23.80B20.58B22.48B22.58B13.69B9.21B
Gross Profit14.88B11.76B10.89B10.32B8.40B7.60B
EBITDA7.61B5.95B5.55B5.43B3.82B3.54B
Net Income4.05B3.37B3.13B3.00B2.17B1.92B
Balance Sheet
Total Assets462.47B368.42B353.74B337.15B323.87B307.43B
Cash, Cash Equivalents and Short-Term Investments47.77B36.93B42.75B51.43B35.68B61.92B
Total Debt62.18B55.59B52.58B44.43B36.57B32.72B
Total Liabilities420.60B333.91B322.97B308.65B298.56B283.91B
Stockholders Equity28.48B22.81B23.14B21.65B19.35B18.00B
Cash Flow
Free Cash Flow95.67M3.29B-9.78B2.06B-9.29B10.86B
Operating Cash Flow988.78M4.04B-9.03B2.59B-8.81B11.40B
Investing Cash Flow-4.27B-1.00B-850.00M-599.00M-233.00M-483.40M
Financing Cash Flow3.02B-630.00M-1.55B-1.02B-756.00M-1.31B

Erste Group Bank AG Technical Analysis

Technical Analysis SentimentPositive
Last Price65.47

Price Trends

50DMA65.13Positive
100DMA66.48Negative
200DMA62.62Positive

Market Momentum

MACD-0.01Negative
RSI59.61Neutral
STOCH98.78Negative

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 65.47 is above the 20-day moving average (MA) of 61.39, above the 50-day MA of 65.13, and above the 200-day MA of 62.62, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 98.78 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 (68)

Financial Indicators

EBKDY against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IBNIBN73Outperform$121.43B19.0615.93%0.72%0.06%1.65%
KBKB70Outperform$38.63B8.3511.06%2.88%27.58%13.76%
NWGNWG70Outperform$62.01B8.1115.79%5.92%6.17%16.21%
Sector *68Neutral$18.00B11.429.92%3.81%9.73%1.22%
SHGSHG63Neutral$29.36B7.329.51%3.10%27.85%15.08%
EBKDYEBKDY62Neutral$52.25B11.8115.66%0.67%19.99%33.97%
LYGLYG59Neutral$73.27B10.0213.09%4.13%1.06%75.52%

* Financial Sector Average

Performance Comparison

0%20%40%EBKDYIBNKBLYGNWGSHGDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
EBKDY and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
EBKDYErste Group Bank AG65.4712.1722.83%
IBNIcici Bank34.743.9912.97%
KBKb Financial Group Inc.114.7525.3428.34%
LYGLloyds Banking Group5.210.5010.71%
NWGNatwest Group Plc15.930.624.02%
SHGShinhan Financial64.5210.1118.58%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Date of analysis: Nov 06, 2026