Surprising Write-Offs at Erste Group

Professional ServicesBanks ♦ Published: October 10, 2011; 14:32 ♦ (Vindobona)

Due to write-offs in Hungary and Romania, Austrian Erste Group reports a net loss of about € 920 - 970m in the first three quarters of 2011.

Surprising Write-Offs at Erste Group / Picture: © Erste Group / Christian Wind

The management board of Erste Group has decided on a number of measures that affect the presentation of its CDS portfolio, its Hungarian and Romanian operations, and result in the uniform application of the effective interest rate method across the group.

Erste Group has cut its sovereign exposure to Greece, Portugal, Spain, Ireland and Italy from € 1.9bn at year-end 2010 to…