Erste Bank’s losses in Hungary and Romania are proving to be a bigger drag on its results than it previously expected, according to Bloomberg. The deteriorating bad credit situation is forcing the company to create more reserves than anticipated, leading to a fall in operating earnings. But it was quick to diffuse any nervousness over its situation, in a recently issued report. “Erste Group expects a stable operating result in 2012…Risk costs are expected to decline to about €2bn in 2012, but will still be impacted by extraordinary provisioning requirements in Hungary and by the slow economic recovery in Romania.”
