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Stabilising loan volume, continued cost discipline Andreas Treichl, CEO Erste Group Gernot Mittendorfer, CFO Erste Group Andreas Gottschling, CRO Erste Group
30 April 2014
Erste Group investor presentation Q1 2014 results
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Disclaimer – Cautionary note regarding forward-looking statements
2
• THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THIS INFORMATION OR OPINIONS CONTAINED HEREIN.
• CERTAIN STATEMENTS CONTAINED IN THIS DOCUMENT MAY BE STATEMENTS OF FUTURE EXPECTATIONS AND OTHER FORWARD-LOOKING STATEMENTS THAT ARE BASED ON MANAGEMENT’S CURRENT VIEWS AND ASSUMPTIONS AND INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR EVENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH STATEMENTS.
• NONE OF ERSTE GROUP OR ANY OF ITS AFFILIATES, ADVISORS OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER (IN NEGLIGENCE OR OTHERWISE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS DOCUMENT OR ITS CONTENT OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT.
• THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO PURCHASE OR SUBSCRIBE FOR ANY SHARES AND NEITHER IT NOR ANY PART OF IT SHALL FORM THE BASIS OF OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT WHATSOEVER.
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Presentation topics
3
• Executive summary • Operating environment • Assets and liabilities • Business performance • Outlook • Appendix
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Executive summary – Group income statement performance
QoQ net profit reconciliation (EUR m)
YoY net profit reconciliation (EUR m)
4
• Significant improvement in other result due to non-recurrence of one-offs (goodwill write-downs)
• Decline in risk costs due to lower provisions in the large corporate and commercial real estate business, and at the savings banks
• Lower tax charge due to reversal of YTD deferred tax assets and no creation of new deferred tax assets in Q4 13
• Decline in operating income driven by NII (CZK impact, lower margins outside the Austrian customer business) only partly offset by better trading and fee income
• Deterioration in other result driven by full recognition of Hungarian banking tax in Q1 14; subsequent quarters will benefit
• Positive contribution from minorities due to normalised provisioning at savings banks
1033348
Q1 14 Minorities Taxes on income
Other result
327
Risk costs
165
Operating expenses
8
Operating income
41
Q4 13
-370
5727 47
33 31
103
177
1-3 14 Minorities Taxes on income
Other result
Risk costs
8
Operating expenses
Operating income
1-3 13
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Executive summary – Key income statement data
Net interest income & margin
5
Operating result & cost/income ratio Cost of risk
Banking levies & income tax rate
Reported EPS & ROE
Cash EPS & cash ROE
G: ±2% G: -5%
758
-4.1%
1-3 14
727
1-3 13 Q1 14
364
1.14%
Q4 13
529
1.65%
-2.0%
1-3 14
364
1-3 13
372
Q1 14
727
57.0%
Q4 13
760
56.1%
Q1 14
1,124
2.62%
Q4 13
1,169
2.73%
64
Q1 14
100
Q4 13
72
1-3 14
100
41.6%
1-3 13
21.4%
1-3 14
0.24
3.6%
1-3 13
0.36
5.5%
Q1 14
0.24
3.6%
Q4 13
-0.91
-12.8%
1-3 14
0.27
4.1%
1-3 13
0.39
5.9%
Q1 14
0.27
4.1%
Q4 13
-0.17
-0.1%
1-3 14
1,124
2.62%
1-3 13
1,197
2.71%
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Executive summary – Group balance sheet performance
YTD total asset reconciliation (EUR m)
YTD total liability reconciliation (EUR m)
6
• Stabilisation of net customer loans in Q1 14 thanks to solid performance of AT, CZ and SK retail and SME business lines
• Slight increases in interbank lending as well as trading and financial assets following declines in previous quarters
• Increase in bank deposits more than offsets decline in customer deposits and in debt securities issued
• Decline in customer deposits mainly driven by final deconsolidation of Czech pension fund (EUR 1.8bn) and lower deposits in EBOe and Erste Bank Hungary
• Lower debt securities due to maturities of unsecured bonds
31/03/14
203,903
Other assets
298
Intangibles
33
Net loans
139
Loans to banks
1,585
Trading, financial assets
1,001
Cash
1,072
31/12/13
200,118
863
31/03/14
203,903
Equity
284
Other liabilities
Debt securities
2,081
Customer deposits
2,970
Bank deposits
7,121
Trading liabilities
568
31/12/13
200,118
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Executive summary – Key balance sheet data
Loan/deposit & loan/TA ratio
7
Net loans & credit RWA NPL ratio & NPL coverage ratio
Basel 3 (phased-in) capital ratios *
Regulatory (B3)* & tangible equity
Liquidity coverage & leverage ratio
-0.1%
Credit RWA
87.9 84.9
Net loans
119.8 119.9
31/03/14 31/12/13
NPL ratio
9.6% 9.6%
NPL coverage
62.6% 63.1%
Loans/total assets
58.8% 59.9%
Loan/deposit ratio
100.3% 98.0%
Tangible equity
9.1 8.9
CET1 (phased-in)
11.3 11.2
CET 1
11.1% 11.4%
Total capital
15.5% 16.3%
G: ±2%
* Dec 13 pursuant to Basel 2.5 LR (phased-in)
5.3% 5.3%
LCR
108.7% 106.6%
in EUR bn
in EUR bn
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Presentation topics
8
• Executive summary • Operating environment • Assets and liabilities • Business performance • Outlook • Appendix
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Business environment – Ongoing macroeconomic stabilisation
Real GDP growth (in %)
9
Private consumption growth Consumer price inflation (ave, in %)
Fixed cap formation growth (in %)
Current account balance (% of GDP)
Gen gov balance (% of GDP)
Unemployment rate (eop, in %)
Public debt (% of GDP)
HR
0.3
-0.5
HU
1.4 1.5
RO
2.7 2.4
SK
1.5
0.5
CZ
0.6 0.4
AT
0.6 1.2
2015 2014
HR
0.8 0.0
HU
2.0 1.9
RO
3.3 3.0
SK
2.5 1.7
CZ
2.7 2.0
AT
1.9 1.7
0.7
HU
1.3
HR AT
3.4
1.2
2.7
1.2
2.4
SK
2.5
CZ RO
1.9 2.1 1.9 2.2
HU
7.1
18.0
AT
18.4
SK
9.9
HR
14.3
RO
10.4
14.5
CZ
7.1 7.5 7.2
4.9 4.9
HR HU RO AT
5.4
3.8 3.3
0.9
2.3
SK
3.0 2.0
CZ
2.6
-0.9
4.0
1.2
2.5
HR HU RO AT
-1.4
2.6 1.8
1.3 1.1
SK
4.7 4.1
CZ
-1.4
0.0
-1.2
2.4 2.6
HR HU RO AT
-2.8 -2.9
-3.0
-5.5 -4.8
SK
-2.6 -2.7
CZ
-2.0 -1.7
-2.8
-0.6 -1.5
68
79
39
57
45
73 7179
39
57
44
71
HR HU RO AT SK CZ
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Business environment – Interest rate environment still challenging
Austria
10
Czech Republic Romania
Slovakia
Hungary
Croatia
1-3 13 1-3 14
1.98%
0.30%
1.84%
0.21%
10YR GOV 3M Interbank
1-3 13 1-3 14
2.27%
0.37%
1.94%
0.50%
1-3 13 1-3 14
5.36%
2.66%
5.79%
5.47%
1-3 13 1-3 14
2.38%
0.30%
2.36%
0.21%
1-3 13 1-3 14
5.80%
2.82%
6.29%
5.42%
1-3 13 1-3 14
0.65%
1.10%
Q1 14
1.98%
0.30%
Q4 13
2.15%
0.24%
Q1 14
2.27%
0.37%
Q4 13
2.31%
0.41%
Q1 14
5.36%
2.66%
Q4 13
5.24%
2.56%
Q1 14
2.38%
0.30%
Q4 13
2.59%
0.24%
Q1 14
5.80%
2.82%
Q4 13
5.73%
3.34%
Q1 14
0.65%
Q4 13
1.12%
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Business environment – Limited currency volatility, despite CZK devaluation in November 2013
EUR/CZK
11
EUR/RON
EUR/HUF
EUR/HRK
1-3 13
+7.3%
25.6 27.4
1-3 14 Q4 13
+2.9%
26.7 27.4
Q1 14 31/12/13
+0.1%
27.4 27.4
31/03/14 1-3 13
+2.6%
4.39 4.50
1-3 14 Q4 13
+1.2%
4.45 4.50
Q1 14 31/12/13
-0.3%
4.47 4.46
31/03/14
1-3 13
+3.9%
296.5 307.9
1-3 14 Q4 13
+3.5%
297.4 307.9
Q1 14 31/12/13
+3.4%
297.0 307.2
31/03/14 1-3 13
+0.9%
7.58 7.65
1-3 14 Q4 13
+0.3%
7.63 7.65
Q1 14 31/12/13
+0.3%
7.63 7.65
31/03/14
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Business environment – Market shares: stability in AT*, CZ and SK, challenges in RO, HU
Gross retail loans
12
• RO: stabilisation following an 85% yoy increase in PI new business volumes
• HU: market share development is a function of legacy business
Gross corporate loans
• AT: higher volumes both in EBOe and the Savings banks
• RO: selective lending policy with focus on quality customers
• HU: portfolio concentration to preferred sectors; impact of municipality debt consolidation
Retail deposits
• RO: declining markets share mainly due to deposit repricing
• RS: market share increase due to well-respected brand
• HU: focus also on alternative saving products such as investment funds where EBH has market share of 16%
Corporate deposits
• RO: good quality large corporate inflow in Q1 2014
• HU: reviewing deposit repricing • RS: Q1 2014 mainly due to
short-term deposit inflow
23.5%
RS 3.4% 3.3%
HR 13.8% 13.7%
HU 15.5% 15.8%
RO 17.7% 18.2%
SK 26.0% 25.8% 26.6%
CZ 23.6% 23.7%
AT 19.0% 19.0%
17.8%
15.7%
13.8%
3.4%
28/02/14 31/12/13 31/03/13
RS 2.8% 2.8% 2.8%
HR 15.7% 15.9% 16.1%
HU 6.3% 6.6% 7.4%
RO 20.5% 20.8%
22.9%
SK 11.4% 11.1% 11.1%
CZ 19.4% 19.0% 19.2%
AT 17.1% 16.8%
RS 2.9% 2.8% 2.6%
HR 12.8% 12.8% 12.5%
HU 6.8% 7.0%
8.5%
RO 17.7% 18.1%
19.5%
SK 26.5% 26.5%
25.8%
CZ 26.6% 26.9% 27.5%
AT 18.3% 18.3%
9.9%
AT 20.4% 20.5%
RS 4.9% 4.6% 5.0%
HR 11.9% 12.2% 12.1%
HU 5.9% 5.8% 6.8%
RO 13.8%
12.8% 13.9%
SK 10.5%
9.6% 9.5%
CZ 10.1% 10.2%
* AT market shares not yet available.
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Presentation topics
13
• Executive summary • Operating environment • Assets and liabilities • Business performance • Outlook • Appendix
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Assets and liabilities: YTD overview – Loan/deposit ratio balanced at 100.3%
Assets (EUR bn)
14
Assets (in %)
Liabilities & equity (EUR bn)
Liabilities & equity (in %)
31/03/14
203.9
9.1 2.4
119.8
10.0
52.3
10.4
31/12/13
200.1
8.8 2.4
119.9
8.4
51.3
9.3
Other assets Intangibles Net loans Loans to banks Trading, financial assets Cash
31/03/14
203.9
15.1 6.9
31.0
119.4
24.4 7.0
31/12/13
200.1
14.8 6.0
33.1
122.4
17.3 6.5
Equity Other liabilities Debt securities Customer deposits Bank deposits Trading liabilities
100%
31/03/14
4.5% 1.2%
58.8%
4.9%
25.6%
5.1%
31/12/13
4.4% 1.2%
59.9%
4.2%
25.6%
4.6% 100%
31/03/14
7.4% 3.4%
15.2%
58.6%
12.0% 3.5%
31/12/13
7.4% 3.0%
16.6%
61.2%
8.6% 3.2%
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Assets and liabilities: customer loans by country of risk – Stabilisation of net loans and performing loans in Q1 14
Net customer loans (EUR bn)
Performing loans (EUR bn)
15
Non-performing loans (EUR bn)
-0.1%
31/03/14
119.8
8.9
19.0
7.7
31/12/13
119.9
62.7
19.0
7.6 9.1 5.3
6.8 0.9
63.3
5.0 6.8
0.8 5.7 5.8 2.7
31/03/13
122.7
62.4
19.9
7.2 10.3 5.9
6.7 1.0
6.6 2.6 2.7
HU SK RO Other EU HR RS Other CZ AT
4.6
18.7
115.4
61.6
8.0
6.1
7.5
4.3
-0.2%
31/03/14
115.2
62.2
18.7
7.6 7.7
31/12/13
6.1 5.1
2.8 0.8
6.2 2.7 1.0 5.4
2.8
31/03/13
118.1
61.3
19.6
7.2 8.8 5.2
6.1 0.8
3.1
0.4
3.5
1.7
1.3 0.1
0.7 0.3
3.0
1.1 0.5
3.2
1.6
1.6 0.1
1.0
0.3
31/12/13
12.3
3.1
1.1 0.5
3.2
1.7
1.5 0.1
0.8 0.3
31/03/13
12.2 12.2
31/03/14
-0.5%
0.9
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Assets and liabilities: allowances for customer loans – Slight decline in allowances follows stabilisation of NPL volume
Quarterly development (EUR m)
16
Highlights • Stock of allowances for impairments
declined slightly ytd on the back of lower NPL stock vs year-end 2013
• QoQ improvement in new allocations driven by corporate, after extraordinarily high allocations in Q4 13
• New allocations almost evenly spread between retail and corporate, following no allocations in retail in Q4 13
• Lower level of use driven by corporate segment due to lower overall qoq NPL sales (EUR 86.2m vs EUR 329.5m)
• Releases flat qoq driven by strong increase in retail offset by decline in corporate
• Lower qoq interest income from impaired loans driven by corporate business
• Only minor FX impact in Q4 13, Q1 14
27
775
827725
380
506
249144
78
586
39
1,046
30/09/13
7,837 69
334
8
30/06/13
7,757 74
404
31/03/13 31/12/13
14
498
55 7,660
31/03/14
7,752
-1.2%
7,631
Exchange-rate and other changes (+/-) Interest income from impaired loans
Releases Use Allocations
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Assets and liabilities: financial and trading assets – LCR at comfortable 107% (YE 13: 109%)
By geography (EUR bn)
By debtor type
17
Liquidity buffer (EUR bn)
• Liquidity buffer is defined as unencumbered collateral plus cash
• Total liabilities are defined as total on balance sheet liabilities excluding total equity
47.0
12.3
10.4
6.3
4.1 3.5
2.1
31/03/13
+2.1%
31/03/14
45.8
12.1
8.2
6.0
5.3 3.9 2.2
8.1
31/12/13
44.8
12.6
8.6
6.0
4.6 3.1
2.1
7.8 8.4
AT CZ SK
RO HU DE Other
75.0%
100%
31/03/14
77.3%
12.1%
10.6%
31/12/13
75.1%
12.6%
12.3%
31/03/13
11.9%
13.2%
Banks Other
Sovereign
31/03/14 31/12/12
21.5%
31/12/13
20.7%
39.8 39.2 40.1
20.3%
31/12/11
34.6
17.8%
Liquidity buffer as % of total liabilities Liquidity buffer
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Assets and liabilities: intangibles – Intangibles reduced in size, currently at 20.9% of book value
Quarterly development of intangibles (EUR bn)
18
Highlights • Customer relationships are subject to regular
amortisation • Quarterly customer relationship amortisation
charge averages between EUR 15-20m and is booked in operating expenses of the Group Corporate Center
• Extraordinary goodwill writedowns amounted to EUR 383m in 2013
• BCR-related goodwill is carried in LCY, hence subject to currency volatility, while CZ and SK goodwill are carried in EUR
• No goodwill in Hungary • Regular impairment tests are carried out as
part of the annual auditing process at year-end
30/06/13
2.8
0.6
0.3
0.3
0.5
0.2
0.2
0.6
31/03/13
2.9
0.6
0.3
0.3
0.5
0.2
0.3
0.6
-1.3%
31/03/14
2.4
0.3
0.3
0.3
0.5
0.2 0.2
0.6
31/12/13
2.4
0.3
0.3
0.3
0.6
0.2 0.2
0.6
30/09/13
2.8
0.5
0.3
0.3
0.5
0.2 0.2
0.6
BCR goodwill
Brand (mainly BCR) Customer relationships (mainly BCR) CZ goodwill
SK goodwill Other goodwill Software
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Assets and liabilities: customer deposit funding – Decline in customer deposits driven by EUR 1.8bn Czech one-off
By customer type
By product type
19
Highlights • YTD decline driven mainly by:
• Final deconsolidation of Czech pension fund (EUR 1.8bn), one-off effect impacting retail
• Decline in EBOe due to successful deposit repricing with positive margin effect
• Continued yoy and qoq decline of Hungarian large corporate deposit base
3/31/14
119.4
61.3
57.1
0.6 0.4
31/12/13
122.4
65.1
56.0
0.9 0.5
31/03/13
123.1
68.2
52.9
1.4 0.6
Overnight deposits Term deposits Repurchase agreements FV deposits
-2.4%
31/03/14
119.4
83.4
22.8
7.8 5.0 0.4
31/12/13
122.4
87.8
23.5
4.9 5.8 0.5
31/03/13
123.1
86.7
27.0
3.0 5.9 0.6
Households Non-financial corporations Other financial corporations General governments FV deposits
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Assets and liabilities: debt vs interbank funding – Decline in deposits and issued debt offset by increase in interbank funding
Debt securities issued (EUR bn)
Interbank deposits (EUR bn)
20
-6.3%
31/03/14
31.0
0.3 2.1
7.6
1.6 0.4
13.7
0.4 1.2
3.8
31/12/13
33.1
0.3 2.1
7.4
1.9 0.8
15.5
0.4 1.2
3.6
31/03/13
34.5
0.3 2.1
8.5
2.4 0.1
16.4
0.0 1.2
3.5
Other Public sector CBs Mortgage CBs Other CDs, name cert’s Certificates of deposit Senior unsec. bonds Hybrid issues Suppl. capital Sub debt
+41.2%
31/03/14
24.4
4.1
16.9
3.4
31/12/13
17.3
2.7
10.3
4.3
31/03/13
21.4
2.6
12.5
6.2
Repurchase agreements Term deposits Overnight deposits
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Assets and liabilities: ST vs LT funding – Limited LT funding needs, solid ST funding collateral coverage
Maturity profile of debt (EUR bn)
Wholesale funding outflow (<1y) v collateral coverage
21
• Last government-guaranteed bond redeemed in February 2014 • Refinancing needs still modest in 2014 • Limited liquidity demand is covered by retail issues and private
placements • The average maturity of Q1 issues amounts to 8.2 years and
extends the current redemption profile
• Coverage ratio at a very reassuring level • The volume of unencumbered collateral constantly increases due
to investments exclusively to central bank eligible assets • Short term wholesale funding is quoted on a gross basis – net
short term wholesale funding (netting with short term interbank and central bank placements) actually decreased
37.0
31/12/13
139.4%
33.9
31/12/11
27.0
165.1%
31/12/12 31/03/14
156.6%
20.5
37.6
23.6 31.6
22.3
141.2%
31/12/10
27.9 24.0
116.3%
Collateral coverage Unencumbered collateral (post haircut) Wholesale funding outflow (<1y)
2023 2021 2017
1.5
2018
2.4
2016
3.5
2015 2020
2.4 2.7
2019
1.5
2.4
2014 2024 2025
0.2
2022
0.4 0.7
2.7
3.8
2026+
1.3
Capital exc Tier 1 Debt CEE subs
Senior unsec. bonds Covered bonds
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Assets and liabilities: capital position – Basel 3 implementation as of 31 March 2014
Basel 2.5/Basel 3 capital (EUR bn)
Risk-weighted assets (EUR bn)
22
Basel 2.5/Basel 3 capital ratios
• AT1 hybrids consumed by partial phase-out (20%) and deduction of intangibles from AT1 instead of CET1 during transitional period
• Increase in Tier 2 due IRB surplus for NPLs (switch to gross view)
• Further minor RWA adjustments are expected in the course of 2014
• Basel 3 induced RWA increase per 31 March 2014 is expected to be reduced by about EUR 1bn until year end
• Basel 3 CET1 ratio (final) equalled 10.4% at 31 March 2014
• Compared to year-end 2013 level of 10.8%, main drivers are implementation of gross view for IRB shortfall for performing loans and RWA uplift
31/03/14
15.9
11.3
0.0 4.5
31/12/13
16.0
11.2
0.4 4.2
30/09/13
15.7
10.8
0.4 4.3
30/06/13
16.8
11.9
0.4 4.2
31/03/13
16.7
11.8
0.4 4.2 0.3 0.0 0.2
0.3 0.2
CET1 AT1 Tier 2 Tier 3
31/03/14
102.2
87.9
11.0 3.3
31/12/13
97.9
84.9
10.2 2.9
30/09/13
99.0
86.6
9.3 3.0
30/06/13
100.9
87.3
10.1 3.5
31/03/13
105.1
90.1
11.2 3.7
Credit RWA Op risk Trading risk
31/03/14
15.5
%
11.1
%
11.1
%
31/12/13
16.3
%
11.8
%
11.4
%
30/09/13
15.8
%
11.2
%
10.9
%
30/06/13
16.6
%
12.2
%
11.8
%
31/03/13
15.9
%
11.6
%
11.2
%
Total capital Tier 1 CET1
Basel 2.5 Basel 3 Phased-in
Basel 2.5 Basel 3 Phased-in
Basel 2.5 Basel 3 Phased-in
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Presentation topics
23
• Executive summary • Operating environment • Assets and liabilities • Business performance • Outlook • Appendix
Page
Business performance: performing loan stock & growth – Stabilisation in Q1 14 driven by Retail and SME in AT, SK, CZ
Business line view
Geographic view
24
• Stabilisation of performing loan stock in Q1 14 after significant decline in 2013, supported by Retail, SME and SBs segments
• Reallocation of about EUR 1.5bn of performing loans from SME to LC as per 1 Jan 2014 distorts yoy and qoq comparison, as does EUR 1.0bn shift from LC to OC as per 31 Dec 2013 (yoy only)
• Continued deleveraging in CRE qoq and yoy
• Continued qoq deleveraging in HU, RO and OA (CRE), partly offset by better performance in AT
0.5 0.5 0.5
HR 5.6 5.6 5.5
HU 3.7 4.0 4.5
SK 7.2 7.1 6.8
RS
7.0 7.4 8.4
CZ 17.7 17.6 18.2
AT/OA 10.2 10.6 12.4
AT/EBOe 27.2 27.0 26.8
RO 35.3 34.8
SME 18.8 20.2 20.7
Retail 43.2 43.1 43.9
Group 115.2 115.4 118.1
OC 1.6 1.7 0.8
CRE 7.6 8.0 9.4
LC 7.7 6.3 7.6
AT/SB 35.2
OC -8.2% 85.2%
CRE -4.7% -18.7%
LC 21.5% 0.6%
AT/SB -0.4% 1.3%
SME -7.0% -9.3%
Retail 0.3% -1.5%
Group -0.2% -2.4%
RS -6.7%
HU
HR 2.6%
-1.6%
0.6%
-5.4% -15.9%
SK 1.8% 5.8%
RO -5.1% -16.2%
CZ 0.5% -2.5%
AT/OA -3.5% -17.4%
AT/EBOe 0.7% 1.5%
YoY QoQ
in EUR bn in EUR bn
31/03/13
31/03/14 31/12/13
Page
Business performance: customer deposit stock & growth – Deposit decline overstated by EUR 1.8bn CZ one-off
Business line view
Geographic view
25
• EUR 3.0bn decline is overstated by EUR 1.8bn due to final deconsolidation of Czech pension fund (allocated to Retail)
• Shift from SME to LC distorts comparison
• Underlying trend in CZ stable (see left side explanation) • Decline in EBOe driven by Retail business line due to liability
repricing with positive margin effect • Decline in Hungary due to persistent LC deposit outflows; smaller,
but still significant decline in Retail, SME stable
0.6 0.6 0.6
HR 4.6 4.6 4.3
HU 3.7 4.1 4.8
SK 9.1 9.1 8.9
RS
8.4 8.4 8.5
CZ 24.7 26.5 27.2
AT/OA 4.9 4.4 5.0
AT/EBOe 28.7 30.0 30.1
RO
OC 0.0 0.0 0.0
CRE 1.0 1.2 1.3
LC 5.3 3.7 4.9
AT/SB 34.6 35.1 34.1
SME 10.4 12.3 12.2
Retail 62.6 64.9 64.6
Group 119.4 122.4 123.1
OC 131.5% 148.4%
CRE -16.1% -21.4%
LC 42.3% 8.6%
AT/SB -1.3% 1.6%
SME -15.6% -14.8%
Retail -3.6% -3.1%
Group -2.4% -2.9%
RS 1.4% 2.0%
HR -1.0% 5.8%
HU -9.5% -22.1%
SK 0.4% 2.1%
RO -0.1% -1.0%
CZ -6.7% -9.2%
AT/OA 11.9% -1.9%
AT/EBOe -4.2% -4.7%
QoQ YoY
in EUR bn in EUR bn
31/03/14 31/12/13 31/03/13
Page
Business performance: NII and NIM – NII down yoy and qoq on lower volumes, lower margins and CZK effect
Business line view
Geographic view
26
• Group NII down qoq and yoy due to lower volumes, lower margins, persistently low or falling (HU, RO) interest rates & FX effects (CZ)
• Retail: YOY & qoq decline on lower volumes and margins in BCR, shrinking business in EBH and FX impact in CZ
• SME, LC: QOQ NII impacted by reallocation from SME to LC • CRE: Deconsolidation of leasing companies contributed to overall
deleveraging impact
• AT: YOY improvement in EBOe due to deposit repricing; SBs up yoy and qoq mainly due to derivatives results
• CZ: Decline in NII mainly due to FX effects, despite stable margins • RO: qoq and yoy decline driven by significant volume decline,
especially in SME business, compounded by margin compression • OA: QOQ decline mainly due to lower treasury income and
deconsolidation of leasing companies from Immorent
145
8
60
75
104
162
257
103
135
8
61
70
107
142
241
108
145
8
63
70
108
136
233
99
RS
HR
HU
SK
RO
CZ
AT/OA
AT/EBOe
48
15
47
43
198
64
164
555
19
43
47
207
165
547
19
37
54
214
40
144
538
OC
CRE
LC
AT/SB
ALM&LCC
SME
Retail
Group 1.124
1.169 1.197
Q1 14 Q4 13 Q1 13
2.10% 2.03%
1.51% 1.57% 1.72% 1.76%
2.62% 2.47%
2.14% 1.72% 1.67% 1.57%
0.42% 0.48% 0.55%
2.54% 2.74% 2.71%
4.35% 4.37% 4.52%
2.62% 2.73% 2.71%
4.56% 4.82% 4.98%
3.11% 2.99% 3.01%
3.97% 3.68%
3.46% 4.00% 4.06%
3.83% 4.44% 4.61%
4.93% 3.18% 3.17% 3.16%
1.15% 1.29%
1.12% 1.53% 1.47% 1.38%
in EUR m in EUR m
Page
Business performance: operating income – Decline in NII weighs on operating income
Business line view
Geographic view
27
Highlights • Decline in qoq and yoy group operating
income driven by NII, partly offset by an improved net trading & FV result
• GCC: net trading result down on valuation effects and lower imputed NII on capital that is not allocated (free capital); offset by IG
• SME: qoq decline due to reallocation to LC • Retail: decline in NII driven by lower volumes
and margins, improvements in fee income in AT, RO, HU
• CRE: qoq and yoy decline mainly in NII due to deconsolidation of leasing companies and lower business volumes
• Other Austria driven by commercial real estate business (Immorent) and decline in treasury business
• CZ: positive developments in SME NII could not compensate overall FX effect and lower income from fees and in ALM&LCC
• RO: Lower volumes and margins in all major business lines weigh on NII, fee income improved in retail business
190
222
143
42
12
79
105
137
398
324
240
28
13
83
114
145
219
375
176
341
238
52
12
94
98
196
365
150
336
245
Other
RS
HR
HU
SK
RO
CZ
AT/OA
AT/SB
AT/EBOe
Group 1,691
1,732 1,748
118
235
-32
109
25
74
67
324
0
228
835
-42
83
100
30
69
80
341
-3
838
-18
54
110
24
46
79
336
30
207
824
IG
GCC
GM
OC
CRE
LC
AT/SB
ALM&LCC
SME
Retail
Group 1,691 1,732 1,748
Q1 14 Q4 13 Q1 13
in EUR m in EUR m
Page
Business performance: operating expenses – Improvements mainly on lower personnel expenses
Business line view
Geographic view
28
Highlights • Group operating expenses declined due to
lower average headcount (yoy) and seasonally higher costs in Q4 13 (qoq)
• Retail: yoy decline mainly on reduced personnel expenses, CZ (FX effect) and RO (restructuring)
• SME: lower personnel expenses and positive effect from reallocation to LC
• CRE: improvements on deconsolidation of leasing entities and lower depreciation on operating lease and investment properties
• GCC: significant yoy, qoq increase due to change in cost reimbursement methodology; fully offset in other result; bottom line neutral
• CZ: improvement in personnel expenses, supported by FX effect
• OA: seasonally higher costs in Q4 13, plus leasing deconsolidation effect, which increased costs in HR
• RO: decline in personnel expenses, full effect of restructuring measures visible
• Other: mirrors GCC and IG developments
94
154
238
93
9
34
46
59
185
89
227
153
54
9
38
45
66
92
171
104
103
9
43
42
65
81
165
78
231
145
Other
RS
HR
HU
SK
RO
CZ
AT/OA
AT/SB
AT/EBOe
Group 963 972 990
48
238
36
52
-85
175
46
12
34
16
227
27
74
465
-118
168
15
19
69
445
-91
190
45
12
24
19
231
31
68
434
IG
GCC
GM
OC
CRE
LC
AT/SB
ALM&LCC
SME
Retail
Group 963 972 990
Q1 14 Q4 13 Q1 13
in EUR m in EUR m
Page
Business performance: operating result and CIR – Lower operating income only partly offset by lower costs
Business line view
Geographic view
29
101
127
105
78
50
-51
3
44
60
78
128
212
96
87
3
45
68
79
204
72
103
84
-26-51
2
56
115
200
72
100
Other
RS
HR
HU
SK
RO
CZ
AT/OA
AT/SB
AT/EBOe
Group 727
760 758
72
392
166
105
54
-65
14
40
51
96
-27
154
370
77
-85
48
15
33
61
103
-51
73
-136
65
11
22
59
-2
138
391
IG
GCC
GM
OC
CRE
LC
AT/SB
ALM&LCC
SME
Retail
Group 727 760 758
Q1 14 Q4 13 Q1 13
81.2% 73.4% 76.1%
46.4% 45.6% 43.7% 43.0% 39.9% 43.5% 45.5% 45.7% 43.0% 41.1% 42.0% 42.5% 45.1% 45.5% 46.6% 52.1%
59.2% 46.6%
68.8% 69.8% 70.3%
59.3% 64.6% 63.9%
57.0% 56.1% 56.6%
40.5% 52.1%
38.7% 51.6%
48.7% 46.7%
51.4% 51.9%
46.3% 24.7% 23.1% 23.2%
68.8% 69.8% 70.3%
33.1% 29.4% 32.3%
52.6% 53.2% 55.7% 57.0% 56.1% 56.6%
in EUR m in EUR m
Page
Business performance: risk costs (abs/rel) – Lower risk costs mainly in SME and commercial real estate
Business line view
Geographic view
30
• Decline in group risk costs driven by lower provisioning requirements in CRE, SME and the savings banks (qoq), CRE (yoy)
• CRE: normalisation following exceptionally high provision in 2013 • SME & LC: impacted by reallocation from SME to LC • AT/SB: volatile risk cost distribution in 2013 followed by return to
normalised provisioning
• EBOe: release of risk costs in Q1 13, overall decline qoq due to lower provisioning requirements at subsidiaries
• Other Austria driven by improved risk costs in CRE • RO: different developments in retail and SME (both improved) and
LC (higher risk costs in work out portfolio) • HU: improvement in retail and SME, higher risk costs in CRE • HR: higher risk costs in CRE yoy to increase coverage
37
115
2
31
58
14
104
-4
3
44
46
18
108
27
137
32
3
40
45
13
110
36
51
21
RS
HR
HU
SK
RO
CZ
AT/OA
AT/EBOe 529
118
121
364
119
-4
103
32
13
96
132
372
-4
111
71
109
-4
60
88
48
59
OC
CRE
LC
AT/SB
SME
Retail
Group
-1.36% -1.17% -1.35%
2.37% 4.18%
3.65% 4.14%
3.74% 1.67%
0.49% 1.11%
0.14% 0.98%
1.89% 1.48%
1.02% 1.01% 1.12% 1.14%
1.65% 1.13%
1.93% 1.89%
1.35% 2.33% 2.62%
1.90% 3.37% 3.24%
3.80% 0.67% 0.95% 0.79%
4.29% 4.03% 3.93%
0.77% 0.58% 0.77%
1.64% 4.32%
3.13% 0.30% 0.45%
-0.06%
Q1 14 Q4 13 Q1 13
in EUR m in EUR m
Page
Business performance: non-performing loans and NPL ratio – Stable NPL volume, stable NPL ratio
Business line view
Geographic view
31
• Continued stabilisation of group NPL volume and group NPL ratio on supportive trends in RO, HU and commercial real estate
• NPL sales amounted to EUR 86.2m in Q1 14 • Retail: EUR 39m • Corporate: EUR 47.2m
• Reallocation of about EUR 800m from SME to LC is key reason for rising NPL ratio in LC and decline in SME; underlying trends stable
• NPL sales mainly in Hungary (EUR 71.6m), leading to NPL decline in same amount; NPL ratio rose due to declining overall volume
• Minor sales in CZ, SK, RO • QoQ deterioration in Serbia driven by Retail and LC business lines
738699RS
HR 1,212 1,179 1,160
HU 1,354 1,421 1,528
SK 405 407 405
RO 3,047 3,052
3,302
CZ 849 850 1,004
AT/OA 1,688 1,638
1,188
AT/EBOe 986 1,070 1,011
40OC
143 126
CRE 2,128 2,146
1,912
LC 1,303
535 694
AT/SB 2,557 2,571 2,561
SME 2,657
3,413 3,394
Retail 3,410 3,466 3,610
Group 12,238 12,296 12,232
6.8% 4.5%
21.1% 16.9%
7.8% 8.4%
6.8% 6.9%
14.4% 14.1%
7.4% 7.6%
9.6% 9.4%
9.6%
7.3%
12.4%
6.8%
14.5%
21.8%
8.3% 15.3%
12.7%
17.4% 17.5%
26.4% 25.5%
5.4% 5.6%
29.2% 28.3%
4.6% 5.2%
13.4% 8.8%
3.8% 3.6%
3.5%
14.2%
4.6%
30.3%
5.3%
26.6%
17.7%
17.4%
31/12/13 31/03/13
31/03/14
in EUR m in EUR m
Page
Business performance: allowances for loans and NPL coverage – NPL coverage remains comfortably above 60%-target
Business line view
Geographic view
32
• Overall stable group coverage ratio over the past quarters following significant provisioning
• Decline in LC coverage driven by reallocation from SME, which has lower coverage levels
• Decline in SME driven by charge-off of seasoned and highly provisioned NPLs, mainly related to Romania
• Continued increase in coverage in HR • OA coverage decline reflects shift from SME, booked in the
respective geographic segments, to holding business (LC), which is part of OA
• For explanation of RO coverage decline see left
596674RS
HR 675 635 586
HU 841 884 971
SK 354 352 361
RO 1,895
2,043 1,975
CZ 685 667 725
AT/OA 847 868
744
AT/EBOe 673 682 677
197373
OC
CRE 1,177 1,210
1,024
LC 864
415 489
AT/SB 1,572 1,551 1,533
SME 1,590
2,124 2,066
Retail 2,363 2,361 2,493
Group 7,660 7,753
7,632
58.1% 46.1%
56.4% 53.6%
77.7% 70.4%
60.3% 59.9%
62.2% 60.9%
68.1% 69.1%
63.1% 62.4%
62.6%
69.3%
59.8%
61.5%
66.3%
55.3%
50.8% 76.6% 80.8%
53.9% 50.5%
62.2% 63.6%
86.4% 89.3%
66.9% 59.8%
78.4% 72.2%
53.0% 62.6%
63.7% 67.0%
68.2%
50.2%
80.7%
62.2%
87.4%
62.1%
55.6%
74.8%
31/12/13 31/03/13
31/03/14
in EUR m in EUR bn
Page
Business performance: other result – Q1 14 impacted by full recognition of Hungarian banking tax
Business line view
Geographic view
33
Highlights • QOQ rise in group other result due to one-off
goodwill write-downs of EUR 330.8m in Q4 13; yoy decline due to full recognition of 2014 HU banking tax (EUR 47.9m) in Q1 14
• Hungarian banking tax impacts ALM & LCC business line and Hungary segment
• GCC: yoy improvement due to change in cost reimbursement methodology; fully offset in opex; bottom line neutral, also benefitted from lower Austrian banking tax
• LC: lower provisions for commitments and guarantees in Q1 14 (esp. BCR)
• SBs driven by selling gains in Q4 13
• Volatility in Other segment mirrors developments in GCC and IG elimination
• Improvement in EBOe qoq on impairments of participations in Q4 13
• CZ benefitted from positive one-off effect of EUR 8.1m in Q1 13
• RO improvements due to lower provisions for commitments/guarantees
8
-21
0
0
-22
-15
-19
16
-7
-5
-4
-76
0
-10
-26
-7
-16
5
7
-22
-13
0
0
-62
-11
-7
7
-8
-19
-9
Other -389
RS
HR
HU
SK
RO
CZ
AT/OA
AT/SB
AT/EBOe
Group -124
-450
7
-55
31
-1
2
-10
-7
-5
-16
-2
-12
-76
-78
-2
-5
-14
8
0
-15
-22
-73
59
0
2
-12
-2
-19
-60
1
-19
IG
GCC -330
GM
OC
CRE
LC
AT/SB
ALM&LCC
SME
Retail
Group -124
-450
Q1 14 Q4 13 Q1 13
in EUR m in EUR m
Page
Business performance: income tax and net result – Income tax rate in line with expectations at 41.6%, ROE at 3.6%
Net result by business line
Net result by geography
34
Highlights • Group income tax rate almost doubled yoy to
guided level of about 40%, due to non-creation of deferred taxes (DTA) in 2014
• QOQ decline in income tax charge due to limited recognition of DTAs in 2013
• QOQ improvement in net result driven by significantly lower one-offs (goodwill, taxes), and substantially lower risk costs
• YOY net result deterioration driven by lower operating contribution, full recognition of 2014 Hungarian banking tax in Q1 and higher tax charge
• Return on equity at 3.6% in Q1 14, following -12.8% in Q4 13 and 5.5% in Q1 13
• Cash return on equity at 4.1% in Q1 14, following -0.1% in Q4 13 and 5.9% in Q1 13
152
0
103
42
0
8
-23
40
0
-13
16
65
177
-6
-2
41
1
143
-64
3
17
0
6
-54
-8
136
-3
2
52
Other -69
-504 -70
RS
HR
HU
SK
RO
CZ
AT/OA
AT/SB
AT/EBOe
Group -370
21
62
51
0
51
15
-63
15
16
-33
48
169
177
0
40
-86
-22
3
-37
14
202
0
14
-53
-25
2
-63
193
103
IG
GCC -77
-506 -43
GM
OC
CRE
LC
AT/SB
ALM&LCC
SME
Retail
Group -370
Q1 14 Q4 13 Q1 13
in EUR m in EUR m
Page
Presentation topics
35
• Executive summary • Operating environment • Assets and liabilities • Business performance • Outlook • Appendix
Page
Conclusion – Outlook • Erste Group expects a stable operating environment in its markets in Austria and CEE: while
economic growth is expected to average 1.9% (Erste Group Research) in 2014, interest rates are expected to remain persistently low or fall even further in certain geographies
• Erste Group aims to keep operating profit stable (± 2%) at about EUR 3.1 billion
• Net customer loans are set to remain stable (± 2%) at about EUR 120 billion
• In light of the upcoming ECB Asset Quality Review, Erste Group does not expect a decline in risk costs beyond 5% or to about EUR 1.7 billion
• Erste Group does not anticipate to recognise deferred tax assets in the Austrian tax group in 2014, which will result in a significantly elevated tax rate of about 40%
• The decline in banking taxes from EUR 311 million in 2013 to about EUR 270 million in 2014 should positively affect net profit
• Management proposes dividend of EUR 0.20 per share to AGM
36
Page
Presentation topics
37
• Executive summary • Operating environment • Assets and liabilities • Business performance • Outlook • Appendix
Page
Additional information: new segmentation – Business line and geographic view
Retail
Erste Group – Business segments
SME ALM &
Local CC (ALM&LCC)
Savings Banks
(AT/SB)
Large Corporates
(LC)
Commercial Real Estate
(CRE)
Other Corporate
(OC)
Group Markets
(GM)
Group Corporate
Center (GCC)
Intragroup elimination
(IG)
Erste Group – Geographical segmentation
Austria Central and Eastern Europe Other
EBOe & Subsidiaries (AT/EBOe)
Savings Banks (AT/SB)
Other Austria
(AT/OA)
Czech Republic
(CZ)
Romania (RO)
Slovakia (SK)
Hungary (HU)
Croatia (HR)
Serbia (RS)
• Holding Business • Erste Group Immorent • Erste Asset Management
• Asset/Liability Management • Local Corporate Center
• Investment Banking • International Business
• Other Subsidiaries • Group bookings • Holding Corporate Center • Free Capital
• Holding ALM • Holding CC • Other Subsidiaries • Group bookings and
IG elimination • Free Capital
38
Page
Additional information: income statement – Quarterly view
39
in EUR m Q1 13 Q2 13 Q3 13 Q4 13 Q1 14Net interest income 1,196.7 1,143.3 1,175.9 1,169.2 1,123.9Net fee and commision income 447.4 446.8 449.5 462.8 452.1Dividend income 26.8 21.2 20.2 21.6 14.6Net trading and fair value result 30.7 72.8 80.7 34.6 50.4Net result from equity method investments 2.8 9.4 7.5 2.1 3.1Rental income from investment properties & other operating leases 43.7 41.5 46.6 41.6 46.5Personnel expenses -564.6 -561.9 -552.5 -553.4 -545.9Other administrative expenses -296.7 -280.3 -283.9 -285.1 -292.4Depreciation and amortisation -128.7 -128.1 -127.8 -133.1 -125.0Gains/losses from financial assets and liabilities not measured at fair value through profit or loss, net 22.0 -4.3 6.7 38.1 -3.7Net impairment loss on financial assets not measured at fair value through profit or loss -371.8 -412.6 -460.7 -529.4 -364.2Other operating result -98.2 -279.4 -142.6 -488.4 -119.8
Levies on banking activities -71.6 -113.1 -62.4 -63.9 -99.8Pre-tax result from continuing operations 310.1 68.4 219.6 -219.6 239.5Taxes on income -66.4 91.4 -56.0 -147.5 -99.7Post-tax result from continuing operations 243.7 159.8 163.5 -367.1 139.8Post-tax result from discontinued operations 0.0 0.0 0.0 0.0 0.0Net result for the period 243.7 159.8 163.5 -367.1 139.8
Net result attributable to non-controlling interests 67.0 34.2 35.2 3.2 36.5Net result attributable to owners of the parent 176.6 125.5 128.4 -370.3 103.3
Operating income 1,748.0 1,734.9 1,780.4 1,731.8 1,690.6Operating expenses -989.9 -970.3 -964.2 -971.7 -963.3Operating result 758.1 764.6 816.2 760.1 727.3
Page
Additional information: group balance sheet – Assets
40
in EUR m Mar 13 Jun 13 Sep 13 Dec 13 Mar 14Cash and cash balances 8,453 10,578 11,852 9,301 10,373Financial assets - held for trading 15,438 15,258 14,219 12,283 13,610
Derivatives 8,926 7,507 6,930 6,342 6,482Other trading assets 6,512 7,751 7,289 5,941 7,128
Financial assets - at fair value through profit or loss 657 642 575 529 512Financial assets - available for sale 21,269 20,492 20,569 20,678 20,956Financial assets - held to maturity 19,025 18,572 18,190 17,779 17,191Loans and receivables to credit institutions 10,896 9,150 7,757 8,377 9,962Loans and receivables to customers 122,703 121,999 121,656 119,945 119,805Derivatives - hedge accounting 2,503 1,850 1,788 1,944 2,212Changes in fair value of portfolio hedged items 0 0 0 0 0Property and equipment 2,410 2,364 2,402 2,320 2,330Investment properties 1,011 942 941 951 1,035Intangible assets 2,858 2,807 2,766 2,441 2,408Investments in associates and joint ventures 211 220 217 208 226Current tax assets 133 93 98 100 119Deferred tax assets 679 812 852 719 672Assets held for sale 618 95 106 75 82Other assets 4,345 4,558 4,096 2,471 2,409Total assets 213,211 210,431 208,084 200,118 203,903
Page
Additional information: group balance sheet – Liabilities and equity
41
in EUR m Mar 13 Jun 13 Sep 13 Dec 13 Mar 14Financial liabilities - held for trading 8,845 7,533 7,154 6,475 7,042
Derivatives 8,476 7,044 6,706 6,087 6,341Other trading liabilities 368 489 448 388 702
Financial liabilities - at fair value through profit or loss 2,553 2,418 2,377 2,339 2,275Deposits from banks 0 0 0 0 0Deposits from customers 592 527 498 460 449Debt securities issued 1,961 1,891 1,878 1,879 1,826Other financial liabilities 0 0 0 0 0
Financial liabilities measured at amortised cost 176,637 176,008 175,397 170,786 172,918Deposits from banks 21,359 22,004 23,163 17,299 24,421Deposits from customers 122,465 121,943 121,512 121,955 118,996Debt securities issued 32,509 31,762 30,425 31,245 29,217Other financial liabilities 303 299 298 286 285
Derivatives - hedge accounting 839 619 615 644 681Changes in fair value of portfolio hedged items 1,429 905 870 734 910Provisions 1,494 1,466 1,474 1,448 1,491Current tax liabilities 73 84 89 85 83Deferred tax liabilities 292 208 200 169 182Liabilities associated with assets held for sale 343 0 0 0 0Other liabilities 4,268 4,951 4,613 2,654 3,251Total equity 16,438 16,238 15,294 14,785 15,069
Equity attributable to non-controlling interests 3,536 3,465 3,501 3,466 3,542Equity attributable to owners of the parent 12,903 12,773 11,793 11,319 11,527
Total liabilities and equity 213,211 210,431 208,084 200,118 203,903
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Additional information: gross customer loans – Split by currency
Gross customers loans by currency (EUR bn)
Gross customers loans by currency in %
42
31/03/14
127.5
89.9
24.1
10.2 1.7 1.6
31/12/13
127.7
89.6
24.1
10.7 1.7 1.6
30/09/13
129.5
89.5
11.2 1.9 1.6
30/06/13
129.8
89.6
25.0
11.5 1.9 1.7
31/03/13
130.3
89.6
24.9
12.1 2.1 1.6
25.2
EUR CEE-LCY CHF Other USD
100%
31/03/14
70.5%
18.9%
8.0% 1.3% 1.2%
31/12/13
70.2%
18.9%
8.4% 1.3% 1.3%
30/09/13
69.1%
19.5%
8.7% 1.5% 1.2%
30/06/13
69.1%
19.3%
8.8% 1.5% 1.3%
31/03/13
68.8%
19.1%
9.3% 1.6% 1.2%
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Additional information: gross customer loans – Migration trends
Gross customers loans by risk category (EUR bn)
Gross customers loans by risk category in %
43
31/03/14
127.5
95.1
16.7
3.4 12.2
31/12/13
127.7
95.3
16.6
3.6 12.3
30/09/13
129.5
95.7
17.5
3.9 12.4
30/06/13
129.8
95.1
18.3
3.8 12.6
31/03/13
130.3
95.2
18.9
4.1 12.2
Low risk Management attention Substandard Non-performing
100%
31/03/14
74.6%
13.1%
2.7% 9.6%
31/12/13
74.6%
13.0%
2.8% 9.6%
30/09/13
73.9%
13.5%
3.0% 9.6%
30/06/13
73.3%
14.1%
2.9% 9.7%
31/03/13
73.0%
14.5%
3.1% 9.4%
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• Leading retail and corporate bank in 7 geographically connected countries
• Favourable mix of mature & emerging markets with low penetration rates
• Potential for cross selling and organic growth in CEE
Additional information: footprint – Customer banking in Austria and the eastern part of the EU
Erste Group footprint Highlights
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Direct presence
Indirect presence
Customers : 0.9m
Hungary
Employees : 2,799
Branches: 135
Customers : 3.2m
Romania
Employees : 7,082
Branches: 563
Customers : 0.3m
Serbia
Employees : 964
Branches: 68
Customers : 1.0m
Croatia
Employees : 2,634
Branches: 153
Customers: 5.2m
Czech Republic
Employees : 10,425
Branches : 643
Customers: 2.4m
Slovakia
Employees : 4,216
Branches: 292
Customers: 3.4m
Austria
Employees: 15,791
Branches: 972
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Additional information: strategy – A real customer need is the reason for all business
Retail banking
Corporate banking
Capital markets
Public sector
Interbank business
Customer banking in Central and Eastern Europe
Eastern part of EU Focus on CEE, limited exposure to other Europe
Focus on local currency mortgage and consumer loans funded by local deposits FX loans only in EUR for clients with EUR income (or equivalent) and where funded by local FX deposits (RO, HR & RS) Savings products, asset management and pension products Potential future expansion into Poland
Focus on customer business, incl. customer-based trading activities In addition to core markets, presences in Poland, Turkey, Germany and London with institutional client focus and selected product mix Building debt and equity capital markets in CEE
Financing sovereigns and municipalities with focus on infrastructure development in core markets Any sovereign holdings are only held for market-making, liquidity or balance sheet management reasons
Large, local corporate and SME banking Advisory services, with focus on providing access to capital markets and corporate finance Real estate business that goes beyond financing Potential future expansion into Poland
Focus on banks that operate in the core markets Any bank exposure is only held for liquidity or balance sheet management reasons or to support client business
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Additional information: shareholder structure – Total number of shares: 429,800,000
By investor By region
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* Including Sparkassen 1.2%, Sparkassen Beteiligungs GmbH & Co KG and other syndiate members
13.1%
7.1% 4.1%
1.5%
8.0%
4.0%
53.0%
9.1%
Erste Stiftung, direct Erste Stiftung, indirect * Austria Versicherungsverein Privatstiftung Employess Retail investors
Harbor International Fund CaixaBank
Institutional investors
2.8%
26.0%
43.0%
7.5%
20.7%
Continental Europe North America Austria UK & Ireland Other
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Investor Relations contacts
• Erste Group Bank AG, Graben 21, 1010 Vienna Fax : +43 (0)5 0100-13112 E-mail: [email protected] Internet: http://www.erstegroup.com/investorrelations
http://twitter.com/ErsteGroupIR http://www.slideshare.net/Erste_Group Erste Group IR App for iPad, iPhone and Android http://www.erstegroup.com/de/Investoren/IR_App
Reuters: ERST.VI Bloomberg: EBS AV Datastream: O:ERS ISIN: AT0000652011
• Investor Relations Thomas Sommerauer Tel: +43 (0)5 0100 17326 e-mail: [email protected] Peter Makray Tel: +43 (0)5 0100 16878 e-mail: [email protected] Simone Pilz Tel: +43 (0)5 0100 13036 e-mail: [email protected] Gerald Krames Tel: +43 (0)5 0100 12751 e-mail: [email protected]
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