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ERSTE Group Press release Further insights will follow at ca. 11:30 CEST 2 November 2021 Results for 1-9 / 2021 : Good results reflect strong operating performance . • Operating income rises , as macro upswing supports fee income and trading result gains Flat expenses contribute to solid rise in operating result to 2.59 billion euros Sharp year - on - year decline in risk costs helps boost net income to 1.45 billion euros Lending growth remains substantial alongside continuing deposit inflows Erste Group , the leading lender in Central and Eastern Europe , continued its strong business performance in 2021 by posting a 20 % year - on - year rise in its operating result to 2.59 billion euros for the first nine months of the year ( 1-9 / 2020 : 2.16 billion euros ) . This positive operating development came on the back of solid net interest income , significantly improved net fee and commission income and a sharply higher net trading and fair value result compared to the same period a year earlier . With the risk environment in the CEE region remaining benign , the banking group booked risk costs of 52 million euros in the first three quarters of 2021 , compared to 870 million euros a year earlier . These developments led Erste Group to post a net profit of 1.45 billion euros for the reporting period ( 1-9 / 2020 : 637 million euros ; 1-9 / 2019 : 1.22 billion euros ) . Erste Group CFO Stefan Dörfler : “ The macro rebound in CEE is continuing , with both the region's growth rates and rate hikes in some of its markets beating expectations . That favourable environment has provided the framework in which Erste Group has managed to post strong earnings growth while keeping its expenses flat and sharply lowering its risk provisioning . Our performance at both the operating and net levels is obviously much improved compared to the Covid year 2020 -- but we've also performed well compared to the same period in 2019. The exact course of the pandemic over the winter months and its medium - term impact on CEE are still open . The proven resilience of the economies in our region and the strength of the Erste business model , however , make us optimistic going into year - end 2021 and further into the next year . " Operating income rises 8.5 % Net interest income increased by 2.2 % year - on - year to 3.67 billion euros , primarily due to one - off effects resulting from TLTRO III take - up in Austria and Slovakia . Net fee and commission income rose by 16.7 % to 1.69 billion euros . Increases were posted across all fee and commission categories and core markets , with significant growth seen in particular in payment services , as well as in asset management and in the securities business . The lines items net trading result and gains / losses from financial instruments measured at fair value through profit or loss collectively rose driven mostly by valuation effects -- to 201.0 million euros , compared to 90.4 million euros a year earlier . Operating income increased by 8.5 % to 5.74 billion euros . Operating result up 20 % as expenses remain under control General administrative expenses rose by 0.6 % year - on - year to 3.14 billion euros . Personnel expenses declined by 1.1 % to 1.88 billion euros , while other administrative expenses were 3.4 % higher at 846.6 million euros . Headcount ( on a FTE basis ) declined by 1.8 % YTD to 44,878 at the end of September 2021. Payments into deposit insurance schemes included in other administrative expenses rose by 12.8 % to 113.1 million euros . Almost all payments expected for 2021 have already been posted . Depreciation and amortisation increased by 2.8 % to 413.2 million euros . The operating result was up 20 % at 2.59 billion euros and the cost / income ratio improved significantly to 54.8 % ( 59.1 % ) . Page 1/3