A bit of relief for those involved in central and east European banking. Austria’s Erste Bank, eastern Europe’s second-largest lender after Raiffeisen International Bank, on Wednesday beat analysts’ forecasts for its fourth quarter profits and bad debt charges.

The statement said net profit rose to €254.1m in the three months to December, an increase from the €244.9m recorded in the same period of 2010, and predictions of a €230m profit. Erste shares leapt 4.6 per cent on the news and later traded 3 per cent higher, taking the gain for the year to 37 per cent. As with Raiffeisen, investors have got over the gloomy prognostications about bad debts and credit crunches that spooked the sector late last year. But, as with Raiffeisen, there is still work to be done rebuilding confidence. Continue reading »