...Improved Resilience, Strong Franchise: Erste Group Bank AG's ratings reflect its strengthened financial profile and resilience, strong execution of its consistent strategy and tightened risk appetite. They also reflect its diversified business model focused on retail and corporate banking underpinned by leading franchises and favourable conditions and growth potential in its main core markets of Austria, the Czech Republic, Slovakia and Romania. Focus on Stronger CEE Markets: Erste should benefit in the long term from its primary focus on economically stronger central and eastern European (CEE) countries. Its performance is regularly exposed to political risk in these markets, but we believe this is sufficiently mitigated by the region's favourable interest rates, sound operating margins and growth potential. Sound Profitability: Improved economic conditions in CEE, minimal risk costs and disciplined pricing drive Erste's sound profits despite pressure on operating expenses from wage inflation....
