EBKOF - Erste Group Bank: Trading At 6 Times Earnings And A 7% Dividend Yield
2024-03-09 11:40:00 ET
Summary
- Erste Group will pay a dividend of 2.70 EUR based on its 2023 results.
- European banks, including Erste Group, are navigating volatile times well due to healthy cash balances and lower unrealized losses on debt securities.
- Erste Group's net interest income increased by over 20% in 2023, and the bank expects its loan book to continue growing in 2024.
Introduction
In my previous article on Erste Group ( EBKOF ), I argued that based on the Austrian bank’s dividend policy and anticipated earnings, shareholders would be able to look forward to a dividend yield of 8% . Erste Group released its results a little while ago, and I was pretty satisfied to see the bank will pay a dividend of 2.70 EUR based on its 2023 results. I have been flip-flopping about actually initiating a long position in Erste Group as, on the one hand, I like its exposure to Eastern Europe. But on the other hand, it's quite a politically volatile region and I already have some exposure through my indirect investment in the KBC Group ( KBCSF ) ( KBCSY ) which I recently discussed in an article ....
Erste Group Bank: Trading At 6 Times Earnings And A 7% Dividend Yield