Erste Group returns to profitability in Q4 2011 and cuts net loss for 2011 to 718,9 MIL EUR. Some highlights:
- Core Tier 1 Ratio - at 9,4% (in compliance with Basel 2.5 regulation)
- Shareholders equity amounted at 12,0 billion EUR
- Total assets at 210,0 billion EUR up 2,1% year on year
- Loan to deposit ratio stood at 113,3%
- Net interest income up 2,4% from 5,439 to 5,569 mil EUR
- Net fee and commission income declined by 3,0% from 1,842 to 1,787 mil EUR
- Net trading result 122,3 mil EUR - declined by 62% than 321,9 mil EUR in 2010 (due to changes in the fair value of the CDS portfolio)
- Operating income of 7,478 mil EUR decreased by 1,78% from 7,603 mil EUR in 2010
- The cost/income ratio stood at 51,5%
- Risk costs were up 12,2% from 155 basis points of average customer loan in 2010 to 168 basis point in 2011, primarily due to the need for additional risk provisions in Hungary
Overall the 2011 results were improved by a stronger Q4. The daily chart price is below:
Great chart patterns we can see on the price chart. We had a busted Diamond TOP with an upside breakout at 133 which morphed into a Head & Shoulder (on the chart LS means Left Shoulder, H means Head and RS means Right Shoulder) with the neckline at 140. A very powerfull downtrend had occurred after the downside breakout, probably when Andreas Treichl CEO of ERSTE Bank announced the losses they will encounter this year. It stopped at 45 and managed to create an Ascending Triangle with the height of 15. Sometimes Ascending Triangles can perform as Bottoms in a price chart. After escaped upward from this triangle, met the first Price Target at 75 (15+60) given by the height of the triangle added to the break-out line. In the last weeks this upward momentum had faded away, morphing so far into a Bullish Flag showed also by the MACD indicator, implying that further gains might be ahead.
Have a great day everybody!
