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Tapping the Tier 2 market in the wake of Svenska Handelsbanken and three European insurance companies last week, Erste had gone out this morning with initial price thoughts of 280bp-area over mid-swaps for its no-grow transaction, according to Bond Radar (www.bondradar.com), before tightening as good momentum emerged.

Erste Group management said it expects net loan growth will be the mid-single digits in 2022. On top of interest-rate tailwinds, management is forecasting an “at least high single-digit” increase in net interest income and an increase in net fee and commission income in the mid-single digits. Cost of risk guidance for 2022 is below 20 basis points.

“Erste Group has very good franchises in retail and corporate banking in Austria and the CEE region. Strong growth in these markets has translated into an expanding revenue base in recent years,” said Christian van Beek, lead analyst.

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