Erste Says Bad Debt Persists Amid ECB Review; Shares Drop
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Erste Group Bank AG, Austria’s biggest bank, said operating profit will miss estimates this year as it sets aside more charges than expected for bad loans amid a European Central Bank asset review. The shares slumped.
Erste expects pre-provision operating profit to remain little changed in 2014 at around 3.1 billion euros ($4.2 billion), the Vienna-based company said in a statement today. That compared with an average estimate of 3.4 billion euros, according to the company’s survey of 26 analysts published on its website.