Erste Group Bank AG

Erste Group Bank AG maintains a capital structure characterized by significant leverage, with total liabilities of EUR 342.28 billion against total assets of EUR 368.57 billion. The debt-to-equity ratio stands at 2.46, reflecting the high leverage typical of banking operations. Total equity is recorded at EUR 26.30 billion, while long-term debt amounts to EUR 64.70 billion. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, indicating reliance on external funding sources. Operating cash flow is positive at EUR 4.04 billion, supporting a free cash flow of EUR 2.87 billion after capital expenditures of EUR 0.75 billion.

Profitability metrics show a return on equity (ROE) of 13.85% and a return on assets (ROA) of 0.99%. The company generated net income of EUR 3.51 billion on revenue of EUR 7.79 billion for the latest normalized period. While specific cohort median comparisons are not provided in the input data, the ROE suggests efficient use of shareholder equity relative to the asset base. The net income margin is approximately 45%, indicating strong cost-to-income efficiency or favorable net interest margins within the banking model.

Net income grew at a 16.2% CAGR over four years, reaching EUR 3.5 billion in FY2026.

Revenue expanded at an 11.9% CAGR, demonstrating strong top-line growth momentum through FY2026.

Analysts maintain a buy recommendation with a mean price target of EUR 110.29.

Debt-to-equity ratio of 2.46 places the bank in the bottom quartile of its peer cohort.

Long-term debt surged to EUR 64.7 billion in FY2026, reflecting significant leverage accumulation.

Free cash flow declined to EUR 2.6 billion in FY2025 from EUR 3.2 billion in FY2024.

The company faces a medium level of liquidity risk according to internal risk assessments.

Cash conversion ratio of 1.11 is below the 1.15 median for the banking cohort.

Revenue €2.67B, +42,8% YoY; Net income +18,2% YoY.

• ▍Revenue €2.67B, +42,8% YoY
• ▍Net income +18,2% YoY
• ▍Free cash flow +29,5% YoY
• ▍Net margin 32.8%

Revenue €2.03B, +4,7% YoY; Net income +54,7% YoY.

• ▍Revenue €2.03B, +4,7% YoY
• ▍Net income +54,7% YoY
• ▍Free cash flow +49,9% YoY
• ▍Net margin 46.4%

Revenue €1.98B, +3,8% YoY; Net income +1,8% YoY.

• ▍Revenue €1.98B, +3,8% YoY
• ▍Net income +1,8% YoY
• ▍Free cash flow +6,7% YoY
• ▍Net margin 45.7%

Revenue €1.91B, +4,3% YoY; Net income +8,8% YoY.

• ▍Revenue €1.91B, +4,3% YoY
• ▍Net income +8,8% YoY
• ▍Free cash flow +1 253,5% YoY
• ▍Net margin 48.1%

Revenue €1.87B; Net margin 39.7%.

• ▍Revenue €1.87B
• ▍Net margin 39.7%

Revenue €1.94B; Net margin 31.4%.

• ▍Revenue €1.94B
• ▍Net margin 31.4%

Revenue €1.90B; Net margin 46.6%.

• ▍Revenue €1.90B
• ▍Net margin 46.6%

Revenue €1.84B; Net margin 46.1%.

• ▍Revenue €1.84B
• ▍Net margin 46.1%

Revenue €7.79B, +3,5% YoY; Net income +12,3% YoY.

• ▍Revenue €7.79B, +3,5% YoY
• ▍Net income +12,3% YoY
• ▍Free cash flow +9,2% YoY
• ▍Net margin 45.1%

Revenue €7.53B, +4,1% YoY; Net income +4,2% YoY.

• ▍Revenue €7.53B, +4,1% YoY
• ▍Net income +4,2% YoY
• ▍Free cash flow −17,3% YoY
• ▍Net margin 41.5%

Revenue €7.23B, +21,5% YoY; Net income +38,5% YoY.

• ▍Revenue €7.23B, +21,5% YoY
• ▍Net income +38,5% YoY
• ▍Free cash flow +62,8% YoY
• ▍Net margin 41.5%

Revenue €5.95B, +19,6% YoY; Net income +12,6% YoY.

• ▍Revenue €5.95B, +19,6% YoY
• ▍Net income +12,6% YoY
• ▍Free cash flow +20,6% YoY
• ▍Net margin 36.4%