Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Shareholder Meeting (May 2015)
41 slides from Erste Group Bank's shareholder meeting presentation, May 12, 2015
Slide 1: 22nd Annual General Meeting Erste Group Bank AG
22nd Annual General Meeting Erste Group Bank AG 12 May 2015 Austria Center Vienna Page
Slide 2: Friedrich Rödler, Chairman of the supervisory board
Friedrich Rödler Chairman of the supervisory board Page
Slide 3: First item on the agenda: Report on the financial year 2014
First item on the agenda Report on the financial year 2014 Page 3
Slide 4: Report on the financial year 2014 of Erste Group Bank AG (consolidated)
Report on the financial year 2014 of Erste Group Bank AG (consolidated) Andreas Treichl CEO Erste Group Page
Slide 5: Disclaimer – Cautionary note regarding forward-looking statements
Disclaimer – Cautionary note regarding forward-looking statements • 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 CORREC
Slide 6: Operating environment – Robust economic backdrop in Erste Group's markets
Operating environment – 2014 Robust economic backdrop in Erste Group‘s markets 2015 Real GDP growth (in %) Domestic demand contribution to GDP growth (in %) 3.6 4.0 2.9 2.8 3.0 2.7 3.0 2.7 2.4 2.4 2.4 2.5 2.5 2.2 2.0 1.2 0.7 0.9 0.8 0.3 -0.6 0.0 -0.4 -1.8 AT CZ SK RO HU HR AT CZ SK RO HU HR • CEE ec
Slide 7: Operating environment – Solid public finances in Erste Group's markets
Operating environment – 2014 Solid public finances in Erste Group‘s markets 2015 General government balance (in % of GDP) Public debt (in % of GDP) 85 84 87 81 77 76 Maastricht limit: 60% -1.2 55 54 -2.0 -1.9 -2.4 -2.2 -2.5 -2.2 44 42 -2.9 -2.7 -2.5 39 40 Maastricht limit: -3% -5.0 -5.5 AT CZ SK RO
Slide 8: Business environment – Historic low interest rate environment poses challenges
Business environment – 3m Interbank Historic low interest rate environment poses challenges 10-year Gov Austria Czech Republic Romania 1.99% 2.07% 5.36% 1.48% 1.55% 4.57% 0.22% 0.21% 0.46% 0.36% 3.98% 2.29% 2013 2014 2013 2014 2013 2014 • ECB cut discount rate to 0.05% in Sept 14; • National bank ma
Slide 9: Customer loans and deposits – Renewed loan growth, stable deposit base
Business performance: customer loans and deposits – 2013 2014 Renewed loan growth, stable deposit base, balanced business Customer loans (net) Customer deposits Loan/deposit ratio 119.9 122.4 98.0% Group 120.8 122.6 98.6% 27.4 30.0 91.3% AT/EBOe 28.3 94.6% 29.9 36.4 35.1 103.6% AT/SB 37.0 36.1 102.6
Slide 10: Operating revenues and expenses – Pressure on net interest income
Business performance: operating revenues and expenses – Pressure on net interest income, costs under control Operating revenues Operating expenses -1.7% in EUR m in EUR m 6,995 6,878 219 285 242 271 1,806 -2.8% 1,870 3,896 3,787 518 466 1,146 1,137 4,685 4,495 2,232 2,184 2013 2014 2013 2014 Net int
Slide 11: Operating result and cost/income ratio – Operating result stable
Business performance: operating result and cost/income ratio – 2013 2014 Operating result stable year-on-year Geographic segments Performance summary 3,099 55.7% • Stable operating performance, supported by: Group 55.1% 3,091 • EB Oesterreich 336 64.3% AT/EBOe 390 • Savings Banks 61.8% 378 71.0% • S
Slide 12: Risk costs – Driven exclusively by Romania clean-up
Business performance: risk costs – 2013 2014 Risk costs driven exclusively by Romania clean-up Geographic segments Performance summary 1,774 1.38% • Healthy credit risk environment in: Group 2,159 1.69% • EB Oesterreich 78 0.27% AT/EBOe 104 0.36% • Savings Banks AT/SB 229 0.59% • Czech Republic 199
Slide 13: Asset quality in 2014 – Strong improvement driven by Romania, Hungary
Business performance: asset quality in 2014 – 2013 2014 Strong asset quality improvement driven by Romania, Hungary NPL volume NPL ratio NPL coverage (exc collateral) 12,296 9.6% 63.1% Group 68.9% 10,878 8.5% 1,070 3.8% 63.7% AT/EBOe 68.9% 1,012 3.5% 2,571 6.8% 60.3% AT/SB 64.0% 2,441 6.3% 1,638 13.
Slide 14: Other result – Driven down by intangible write-downs
Business performance: other result – Other result driven down by intangible write-downs Other result * Levies on banking activities in EUR m in EUR m -946 -256 -1,735 -311 2013 2014 2013 2014 • Deterioration in other result driven by intangible • Lower banking levies due to changed formula in writed
Slide 15: Pre-tax result and taxes on income
Business performance: pre-tax result and taxes on income – Income tax burdened by negative change in deferred tax assets Pre-tax result Taxes on income in EUR m in EUR m 378 -179 -803 -509 2013 2014 2013 2014 • Pre-tax result impacted by high risk costs and • Negative change in deferred tax assets i
Slide 16: Net result and dividend – No dividend based on 2014 net loss
Business performance: net result and dividend – No dividend based on 2014 net loss Net result Dividend in EUR m in EUR m 60 0.2 -1,442 0.0 2013 2014 2013 2014 • No dividend as Erste Group Bank AG has no distributable funds in 2014 Page 16
Slide 17: Regulatory capital position – Strong capital ratios despite Basel 3
Business performance: regulatory capital position – Strong capital ratios despite Basel 3 implementation and net loss in 2014 Regulatory capital (EUR bn) Risk-weighted assets (EUR bn) Capital ratios (in %) Basel 2.5 Basel 3 Basel 2.5 Basel 3 Basel 2.5 Basel 3 Phased-in Phased-in Phased-in 15.8 15.9
Slide 18: Q1 15 performance summary – Stable operating performance despite NII headwinds
Q1 15 performance summary – Stable operating performance despite NII headwinds Operating revenues Operating expenses Operating result -0.1% in EUR m in EUR m in EUR m 1,691 1,689 50 64 72 57 -1.6% +1.9% 452 461 963 948 741 727 125 113 292 281 1,124 1,099 546 554 1-3 14 1-3 15 1-3 14 1-3 15 1-3 14 1-
Slide 19: Q1 15 performance summary – Net profit doubles
Q1 15 performance summary – Net profit doubles in Q1 15 Risk costs Other result Net result in EUR m in EUR m in EUR m -49.7% 364 +118.5% 226 183 103 -124 -143 1-3 14 1-3 15 1-3 14 1-3 15 1-3 14 1-3 15 • Strong improvement in risk • Deterioration in other result • Net profit doubles resulting in cost
Slide 20: Q1 15 performance summary – Volume growth and asset quality improvement
Q1 15 performance summary – Volume growth paired with continued asset quality improvement Customer loans (net) Customer deposits NPL ratio +2.2% in EUR m +1.8% in EUR m 120,834 123,437 122,583 124,752 8.5% 8.1% 31/12/14 31/03/15 31/12/14 31/03/15 31/12/14 31/03/15 • Customer loan growth mainly • Con
Slide 21: Share price performance
in EUR 15 20 25 30/12/14 30 06/01/15 13/01/15 20/01/15 27/01/15 Share price performance – 03/02/15 10/02/15 17/02/15 24/02/15 03/03/15 10/03/15 17/03/15 24/03/15 31/03/15 07/04/15 14/04/15 21/04/15 28/04/15 05/05/15 Improving performance increasingly reflected in share price, after 24.1% drop in 201
Slide 22: Conclusion – Outlook 2015
Conclusion – Outlook 2015 • Operating environment anticipated to be conducive to credit expansion • Real GDP growth of between 2-3% expected in 2015 in all major CEE markets, except Croatia • Real GDP growth to be driven by solid domestic demand • Real GDP growth in Austria expected at below 1% in 2
Slide 23: Erste Group
ERSTES Group
Slide 24: Agenda Items
Agenda Items Friedrich Rödler Chairman of the supervisory board Page
Slide 25: Second item: Grant of discharge to the management board
Second item on the agenda Grant of discharge to the members of the management board Page 25
Slide 26: Third item: Grant of discharge to the supervisory board
Third item on the agenda Grant of discharge to the members of the supervisory board Page 26
Slide 27: Fourth item: Remuneration of the supervisory board
Fourth item on the agenda Resolution on the remuneration of the members of the supervisory board Page 27
Slide 28: Fifth item: Elections to the supervisory board
Fifth item on the agenda Elections to the supervisory board Page 28
Slide 29: Sixth item: Appointment of an additional auditor
Sixth item on the agenda Appointment of an additional auditor Page 29
Slide 30: Seventh item: Acquisition of own shares for securities trading
Seventh item on the agenda Approval of the acquisition of own shares for the purpose of securities trading Page 30
Slide 31: Eighth item: Authorisation to acquire own shares
Eighth item on the agenda Authorisation to acquire own shares for no designated purpose and to the exclusion of trading in own shares as purpose of this acquisition, and authorisation of the management board to dispose of acquired shares, also by means other than the stock exchange or a public offer
Slide 32: 22nd Annual General Meeting – Q&A
22nd Annual General Meeting Erste Group Bank AG Q&A Page
Slide 33: 22nd Annual General Meeting – Resolutions
22nd Annual General Meeting Erste Group Bank AG Resolutions Page
Slide 34: Second item: Grant of discharge to the management board
Second item on the agenda Grant of discharge to the members of the management board Page 34
Slide 35: Third item: Grant of discharge to the supervisory board
Third item on the agenda Grant of discharge to the members of the supervisory board Page 35
Slide 36: Fourth item: Remuneration of the supervisory board
Fourth item on the agenda Resolution on the remuneration of the members of the supervisory board Page 36
Slide 37: Fifth item: Elections to the supervisory board
Fifth item on the agenda Elections to the supervisory board Page
Slide 38: Sixth item: Appointment of an additional auditor
Sixth item on the agenda Appointment of an additional auditor Page 38
Slide 39: Seventh item: Acquisition of own shares for securities trading
Seventh item on the agenda Approval of the acquisition of own shares for the purpose of securities trading Page 39
Slide 40: Eighth item: Authorisation to acquire own shares
Eighth item on the agenda Authorisation to acquire own shares for no designated purpose and to the exclusion of trading in own shares as purpose of this acquisition, and authorisation of the management board to dispose of acquired shares, also by means other than the stock exchange or a public offer
Slide 41: Thank you for your active participation!
22nd Annual General Meeting Erste Group Bank AG Thank you for your active participation! Page