Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q3 2012 Earnings Presentation
92 slides from Erste Group Bank's earnings presentation, Oct 30, 2012
Slide 1: Erste Group – 1-9 2012 results presentation
Erste Group – 1-9 2012 results presentation 30 October 2012 Resilient operating performance, declining risk costs Andreas Treichl, CEO, Erste Group Manfred Wimmer, CFO, Erste Group Gernot Mittendorfer, CRO, Erste Group
Slide 2: 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 3: Resilient operating performance year-to-date
Executive summary – Resilient operating performance year-to-date • Net profit of EUR 597.3m impacted by one-off items: Income statement – • Goodwill adjustment of EUR 210m (pre-tax) for Romanian subsidiary BCR 1-9 12 view • Costs related to the FX mortgage interest subsidy legislation in Hungary (EU
Slide 4: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 4 London
Slide 5: CEE continued to outgrow the euro zone in Q3 12
Operating environment: macro trends – CEE continued to outgrow the euro zone in Q3 12 − Worldwide weakness of several leading indicators Real GDP growth in CEE 8 affected CEE and has triggered downward 2012 euro zone avg. -0.3% 6 4.2 3.3 revisions for GDP growth 2.7 2.6 2.5 4 2.1 2.0 2.0 1.9 1.7 1.6
Slide 6: What happened in CEE in Q3 12?
Operating environment: macro trends – What happened in CEE in Q3 12? − AT: Economy decelerating, but well positioned to weather recession in euro zone − Austria profits from CA surplus, low unemployment rate and a manageable deficit − CZ: 2W repo rate cut to 0.25% − Euro zone weakness, fiscal restri
Slide 7: CIR stable; NIM slightly down on continued risk reduction
Key financial indicators – CIR stable; NIM slightly down on continued risk reduction YTD cost income ratio YTD net interest margin 58.2% 3.09% 3.03% 52.4% 51.9% 2.98% 50.9% 49.9% 2.77% 2.82% 1-9 08 1-9 09 1-9 10 1-9 11 1-9 12 1-9 08 1-9 09 1-9 10 1-9 11 1-9 12 Cash earnings per share** Cash return o
Slide 8: Strength of core business reflected in solid net profit
Income statement (IFRS) 1-9 2012 – Strength of core business reflected in solid net profit in EUR million 1-9 12 1-9 11 Change Comment Net interest income 3,968.9 4,134.1 (4.0%) Non-core business reduction nearly completed Risk provisions for loans (1,465.3) (1,859.2) (21.2%) Extraordinary risk cost
Slide 9: NII stabilised despite low interest rate environment
Income statement (IFRS) Q3 2012 – NII stabilised despite low interest rate environment in EUR million Q3 12 Q2 12 Change Comment Net interest income 1,317.2 1,314.8 0.2% Non-core business reduction nearly completed Risk provisions for loans (483.5) (401.2) 20.5% Q2 HU provison shift, improvement in
Slide 10: Reduction of non-core business almost finished
Balance sheet (IFRS) – Reduction of non-core business almost finished in EUR million Sep 12 Dec 11 Change Comment Cash and balances with central banks 8,675 9,413 (7.8%) Loans and advances to credit institutions 11,569 7,578 52.7% Excess liquidity deposited with central banks Loans and advances to c
Slide 11: Net profit and OCI drove substantial increase in equity
Balance sheet (IFRS) – Net profit and OCI drove substantial increase in equity in EUR million Sep 12 Dec 11 Change Comment Deposits by banks 25,524 23,785 7.3% LTRO inflow Customer deposits 122,249 118,880 2.8% Growth mainly in AT, CZ, SK & HU Debt securities in issue 29,902 30,782 (2.9%) Lower fund
Slide 12: Improvement in Hungary, strong GM performance
Segment highlights – Improvement in Hungary, strong GM performance Top segment performers in 1-9 2012: Czech Republic Slovakia EBOe GM in EUR million 1-9 12 1-9 11 ∆ 1-9 12 1-9 11 ∆ 1-9 12 1-9 11 ∆ 1-9 12 1-9 11 ∆ Operating income 1,191 1,254 (5%) 404 414 (2%) 706 751 (6%) 413 356 16% Operating expe
Slide 13: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 13 London
Slide 14: Transformation track record in 2012
BCR: transformation through leadership (1) – Transformation track record in 2012 Key transformation • New management (CEO, CFO, Retail) in place since May 2012 priorities • Additional changes on B-1 level, new COO Key priority #1: • 3rd consecutive quarter of improving NPL coverage, now at 57.6% Imp
Slide 15: Transformation goals for 2013
BCR: transformation through leadership (2) – Transformation goals for 2013 * Key transformation The road to profitability in 2013 priorities Key priority #1: • Absolute NPL volume to peak in 2013 on the back of reduced NPL inflows and Improve asset doubled workout capacity quality • Risk provisions
Slide 16: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 16 London
Slide 17: Limited demand reflected in loan book
Loan book review – Limited demand reflected in loan book − Customer loans decreased by 0.9% ytd mainly on reduction in Hungary & International Customer loans by main segments Business 150 135.2 134.7 134.8 − Growth of retail portfolio in SK and private mortgage 133.9 133.5 and corporate business in
Slide 18: NPL ratio stable quarter-on-quarter
Asset quality review – NPL ratio stable quarter-on-quarter − Overall slight reduction of NPLs by EUR 73m Erste Group: NPL ratio vs NPL coverage − NPL sales of EUR 73m in Q3 2012 − NPL volume decreased in Austria and Slovakia 30% 63.9% 65% 63.1% whereas it increased in Romania and Croatia 25% 61.9% 6
Slide 19: AT, CZ & SK improved, HU & RO remained challenging
Asset quality review – AT, CZ & SK improved, HU & RO remained challenging − Retail & SME/Austria: positive trend continued NPL ratios in key segments − Risk costs remained at low level − NPL coverage ratio increased by 0.9%pp ytd due to 30% 27.5% NPL reductions while low risk share increased in both
Slide 20: Risk costs decreased on stabilisation in Hungary
Asset quality review – Risk costs decreased on stabilisation in Hungary − Slovakia: good quality loan growth continued − Risk costs decreased yoy in line with lower NPL ratio Risk costs in key segments − New NPL inflows mainly in real estate business − Slight loan growth driven by housing loans in t
Slide 21: Consistent reduction of exposure to peripheral Europe
Drill-down on selected asset classes – Consistent reduction of exposure to peripheral Europe Total net exposure of Erste Group (incl. savings banks) to selected European countries: in EUR million Sovereign Bank Other Total net exposure Dec 10 Dec 11 Sep 12 Dec 10 Dec 11 Sep 12 Dec 10 Dec 11 Sep 12 D
Slide 22: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 22 London
Slide 23: Customer deposits are core to our business model
Funding update – Customer deposits are core to our business model − Customer deposits grew by 2.8% ytd Customer deposit trends by main segments − Inflows in Czech Republic, Hungary (qoq), Slovakia, Croatia and EBOe 121.5 122.3 122.3 122.2 125 118.9 5.5 5.5 5.8 5.2 4.9 − Retail & SME deposits increas
Slide 24: Successful long-term issuance in 1-9 2012
Funding update – Successful long-term issuance in 1-9 2012 − Short-term funding needs very well covered Evolution of funding mix − Investment in highly liquid assets led to continuously rising collateral coverage of short-term funding needs 100% 3.2% 5.8% 3.2% 3.0% 3.0% 8.2% 2.2% 8.3% 90% 8.5% 9.0%
Slide 25: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 25 London
Slide 26: Erste Group is strongly capitalised
Capital position – Erste Group is strongly capitalised Capital position (Sep 2012) Recent developments Capital development Core tier 1 ratio − CET1 capital improved to EUR (total risk) EBA capital ratio 11.3bn (YE 2011: EUR 10.7bn) excluding retained 9.9% due to full recognition of 10.4% collateral
Slide 27: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 27 London
Slide 28: Outlook
Conclusion – Outlook − Erste Group's core markets expected to show a mixed economic performance in 2012 − While Austria, Romania and Slovakia are projected to post some economic growth, Erste Group’s other core CEE markets are expected to contract in 2012 − In line with the weakening economic outloo
Slide 29: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 29 London
Slide 30: Core segments affected by one-off items in both periods
Segment review – Core segments affected by one-off items in both periods Retail & SME GCIB Group Markets Corporate Center Total Group in EUR million 1-9 12 1-9 11 1-9 12 1-9 11 1-9 12 1-9 11 1-9 12 1-9 11 1-9 12 1-9 11 Net interest income 3,249.8 3,539.3 381.0 394.0 154.8 99.4 183.3 101.4 3,968.9 4,
Slide 31: EBOe's and savings banks pre-tax profit up yoy
Core segment – Austria EBOe’s and savings banks pre-tax profit up yoy Savings banks EB Oesterreich Austria in EUR million 1-9 12 1-9 11 1-9 12 1-9 11 1-9 12 1-9 11 Net interest income 701.7 742.0 467.5 501.8 1,169.2 1,243.8 Risk provisions for loans and advances (159.2) (190.0) (81.5) (92.7) (240.7)
Slide 32: Diverging trends in operating performance…
Core segment Central and Eastern Europe (1) – Diverging trends in operating performance… Czech Republic Romania Slovakia Hungary in EUR million 1-9 12 1-9 11 1-9 12 1-9 11 1-9 12 1-9 11 1-9 12 1-9 11 Net interest income 842.6 900.3 423.7 517.6 318.0 334.4 257.6 303.1 Risk provisions for loans and ad
Slide 33: …and risk cost levels across the region continued
Core segment Central and Eastern Europe (2) – …and risk cost levels across the region continued Croatia Serbia Ukraine CEE in EUR million 1-9 12 1-9 11 1-9 12 1-9 11 1-9 12 1-9 11 1-9 12 1-9 11 Net interest income 191.8 194.7 26.6 27.1 20.3 18.3 2,080.6 2,295.5 Risk provisions for loans and advances
Slide 34: Segment Retail & SME – Net profit up
Segment Retail & SME – Net profit up on lower risk costs and improved other result − Operating result down as reduced operating expenses in EUR million 1-9 12 1-9 11 Change did not fully offset decrease in operating income Net interest income 3,249.8 3,539.3 (8.2%) − Operating income decreased by 6.
Slide 35: Loan book analysis
Segment Retail & SME – Loan book analysis Segment Retail & SME - Segment Retail & SME - Customer loans by Basel II customer segment Customer loans by currency 120 115.2 114.4 114.4 114.2 114.4 100% 2.2% 2.2% 2.0% 2.2% 2.1% 6.3 6.7 6.7 6.4 6.3 14.4% 13.7% 13.1% 12.5% 11.5% 80% 90 21.6% 21.0% 21.6% 21
Slide 36: Segment GCIB excluding IB
Segment GCIB excluding IB – Net result declined on higher risk costs and lower fees − Operating result declined on lower fee income − NII was mainly up on increased volume and improved margins in EUR million 1-9 12 1-9 11 Change in the large corporate business Net interest income 321.3 311.7 3.1% −
Slide 37: Exposure actively reduced to EUR 3.5bn as of Sept 12
International Business (GCIB) – Exposure actively reduced to EUR 3.5bn as of Sept 12 − Targeted reduction of business visible in International Business division’s result in EUR million 1-9 12 1-9 11 Change − NII on declining trend in line with constant reduction of Net interest income 59.7 82.3 (27.
Slide 38: Loan book analysis
Segment GCIB (incl IB) – Loan book analysis Segment GCIB - Segment GCIB - Customer loans by currency Customer loans by Basel II customer segment 25 4.5% 4.9% 5.4% 100% 3.5% 1.2% 5.4% 19.8 19.8 5.7% 1.7% 1.6% 1.5% 1.5% 19.3 19.2 18.8 5.7% 6.3% 6.0% 7.3% 20 1.4 1.3 80% 9.9% 9.3% 8.3% 8.2% 7.4% 1.2 1.2
Slide 39: Solid net profit contribution in 1-9 2012
Segment Group Markets – Solid net profit contribution in 1-9 2012 − Operating result improved on increased net interest income and strict cost management in EUR million 1-9 12 1-9 11 Change − NII increased on shift of interest income on trading securities in Net interest income 154.8 99.4 55.7% 1-9
Slide 40: Net profit due to positive one-offs
Segment Corporate Center – Net profit due to positive one-offs − What is in the Corporate Center? − This segment includes group-wide services in the Marketing, in EUR million 1-9 12 1-9 11 Change Organisation, IT, and other departments that support the Net interest income 183.3 101.4 80.8% implement
Slide 41: Net profit up on lower risk costs & positive other result
Retail & SME: Austria/EB Oesterreich – Net profit up on lower risk costs & positive other result − Operating result decreased year-on-year − NII decreased as a result of the lower interest rate environment in EUR million 1-9 12 1-9 11 Change − Customer deposits increased by 4.1% ytd Net interest inc
Slide 42: Loan book analysis
Retail & SME: Austria/EB Oesterreich – Loan book analysis Segment EB Oesterreich - Segment EB Oesterreich - Customer loans by Basel II customer segment Customer loans by currency 30 28.0 28.2 28.1 28.2 28.2 100% 2.0% 1.9% 1.8% 1.9% 1.9% 1.7 1.8 1.8 1.8 1.8 15.4% 14.4% 14.2% 13.6% 12.5% 80% in EUR bi
Slide 43: Solid operating performance
Retail & SME: Austria/Savings banks – Solid operating performance − Operating result decreased year-on-year due to weaker net interest income in EUR million 1-9 12 1-9 11 Change − NII decreased as a result of the lower interest rate environment Net interest income 701.7 742.0 (5.4%) − Net fee income
Slide 44: Loan book analysis
Retail & SME: Austria/Savings banks – Loan book analysis Segment Savings Banks - Segment Savings banks - Customer loans by Basel II customer segment Customer loans by currency 40 37.7 37.6 37.4 37.6 37.7 100% 3.5% 3.4% 3.4% 3.6% 3.5% 1.6 1.6 1.6 1.6 1.6 19.6% 18.9% 18.5% 17.1% 15.5% 30 80% in EUR bi
Slide 45: Lower risk costs drove increase in net profit
Retail & SME: Czech Republic – Lower risk costs drove increase in net profit − Yoy operating result decreased on weaker NII and net fee income in EUR million 1-9 12 1-9 11 Change − NII down due to currency depreciation and low interest rate Net interest income 842.6 900.3 (6.4%) environment in 1-9 1
Slide 46: Loan book analysis
Retail & SME: Czech Republic – Loan book analysis Segment Czech Republic - Segment Czech Republic - Customer loans by Basel II customer segment Customer loans by currency 20 17.9 17.8 17.8 17.2 17.3 100% 0.3% 3.4% 0.3% 3.7% 0.2% 3.4% 0.2% 3.8% 0.2% 3.4% 0.6 0.7 0.7 0.6 0.6 16 5.6 5.5 5.7 80% 5.3 5.5
Slide 47: Restructuring efforts reflected in financial results
Retail & SME: Romania – Restructuring efforts reflected in financial results − Operating result decreased on lower NII in EUR million 1-9 12 1-9 11 Change − Lower operating expenses and strong trading result Net interest income 423.7 517.6 (18.1%) softened decline − RON depreciation, lower margins a
Slide 48: Loan book analysis
Retail & SME: Romania – Loan book analysis Segment Romania - Segment Romania - Customer loans by currency Customer loans by Basel II customer segment 12 11.0 11.2 11.1 11.0 10.8 100% 1.7% 1.7% 1.7% 1.7% 1.4% 1.1 1.3 1.2 1.0 1.0 80% 9 in EUR billion 4.4 4.4 4.4 4.5 59.9% 60.6% 61.1% 61.3% 61.7% 4.4 6
Slide 49: Continuous solid operating and bottom line performance
Retail & SME: Slovakia – Continuous solid operating and bottom line performance − Operating result down against strong 1-9 2011 − NII slightly declined mainly on lower margins and changed in EUR million 1-9 12 1-9 11 Change investment strategy; housing loans continued to be main driver Net interest
Slide 50: Loan book analysis
Retail & SME: Slovakia – Loan book analysis Segment Slovakia - Customer loans by Basel II customer segment Segment Slovakia - Customer loans by currency 8 6.3 6.3 6.4 100% 0.4% 0.3% 0.1% 0.2% 0.1% 6.0 6.2 6 0.2 0.3 0.2 0.2 0.1 80% in EUR billion 1.3 1.2 1.3 1.3 1.4 0.3 0.3 0.3 0.3 4 0.3 60% 99.6% 99
Slide 51: Adapting to the new business environment
Retail & SME: Hungary – Adapting to the new business environment − Operating result down as a consequence of decrease in NII and net trading result in EUR million 1-9 12 1-9 11 Change − NII declined on portfolio reduction (FX-conversion) and lower Net interest income 257.6 303.1 (15.0%) margins − Re
Slide 52: Loan book analysis
Retail & SME: Hungary – Loan book analysis Segment Hungary - Segment Hungary - Customer loans by currency Customer loans by Basel II customer segment 10 100% 0.1% 0.2% 0.2% 0.2% 0.1% 8 7.7 20.5% 22.0% 22.3% 21.2% 22.0% 0.4 7.1 6.9 6.8 80% 0.4 6.5 0.4 in EUR billion 0.4 0.3 6 2.3 2.1 2.1 2.0 60% 0.1
Slide 53: Solid operating result impacted by increased risk costs
Retail & SME: Croatia – Solid operating result impacted by increased risk costs − Yoy operating result slightly down (stable when adjusted for currency fluctuation) in EUR million 1-9 12 1-9 11 Change − Stable currency-adjusted net interest income Net interest income 191.8 194.7 (1.5%) − Lower fee i
Slide 54: Loan book analysis
Retail & SME: Croatia – Loan book analysis Segment Croatia - Segment Croatia - Customer loans by currency Customer loans by Basel II customer segment 5.8 5.9 6.0 6.0 5.9 6 100% 0.3% 0.3% 0.2% 0.3% 0.2% 0.6 0.7 0.7 0.7 0.6 14% 13% 13% 13% 12% 80% in EUR billion 4 2.4 2.5 2.5 2.5 2.5 60% 66% 67% 67% 6
Slide 55: Operating performance and net result improved 1-9 12
Retail & SME: Serbia – Operating performance and net result improved 1-9 12 − Operating result up on higher net fee income and positive net trading result in EUR million 1-9 12 1-9 11 Change − NII flat in EUR, but up 6.9% in LCY on loan growth Net interest income 26.6 27.1 (1.8%) − Margins in retail
Slide 56: Loan book analysis
Retail & SME: Serbia – Loan book analysis Segment Serbia - Segment Serbia - Customer loans by currency Customer loans by Basel II customer segment 600 539.2 100% 0.9% 0.9% 0.8% 3.9% 0.9% 3.8% 3.8% 0.9% 3.8% 3.3% 480.3 485.6 482.4 481.0 4.3 2.5 2.8 3.4 3.6 80% in EUR million 400 328.1 274.9 286.5 277
Slide 57: Minor improvement in Q3, but still loss making
Retail & SME: Ukraine – Minor improvement in Q3, but still loss making − Operating result down on weak trading in EUR million 1-9 12 1-9 11 Change − Net interest income increased year-on-year on shift of interest Net interest income 20.3 18.3 10.9% income on trading assets − Weaker Q3 due to reducti
Slide 58: Loan book analysis
Retail & SME: Ukraine – Loan book analysis Segment Ukraine - Segment Ukraine - Customer loans by currency Customer loans by Basel II customer segment 800 100% 1.2% 1.5% 1.8% 1.7% 2.2% 600 80% in EUR million 479 497 470 0.0 3.2 440 453 69.7% 62.6% 51 50 3.1 60% 80.2% 75.6% 73.0% 3.0 16.9 400 194 141
Slide 59: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 59 London
Slide 60: Key definitions
Asset quality analysis – Key definitions − Key asset quality indicators are based Risk category Agency ratings on on-balance sheet customer loans Low risk AAA to BB / Aaa to Ba − Reported NPL and NPL coverage ratios Management attention B exclude collateral Substandard CCC to C / − Broad NPL definit
Slide 61: Loan book overview
Asset quality analysis – Loan book overview Customer loans by Basel II customer segments Customer loans by industries 150 135.2 134.7 134.8 133.9 133.5 7.6 8.2 8.0 7.6 7.5 6.0% 120 3.1%3.9% 2.8% 4.9% 39.1% in EUR billion 62.4 62.1 62.5 62.3 61.8 90 5.4% 60 13.4 13.2 13.0 12.9 12.8 4.6% 30 7.0% 51.9
Slide 62: Loan book by segments
Asset quality analysis – Loan book by segments Low risk Management attention Substandard Non-performing Total loan book Risk provisions NPL coverage NPL ratio Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Retail & SME 82,378 80,952 17
Slide 63: Loan book by region (country of origination)
Asset quality analysis – Loan book by region (country of origination) Low risk Management Substandard Non-performing Total loan book attention in EUR million Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Share of total Share of total Core market 90,044 89,007 19,614 21,768 4,
Slide 64: Total exposure by region (country of origination)
Asset quality analysis – Total exposure by region (country of origination) Low risk Management Substandard Non-performing Total loan book attention in EUR million Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Sep 12 Dec 11 Share of total Share of total Core market 146,790 142,947 23,130 25
Slide 65: Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (30 Sept 2012: EUR 42.6 bn) (30 Sept 2012: EUR 42.6 bn) 1.2% 1.8% 2.7% 5.6% 2.3% 9.4% 3.8% 4.4% 31.5% 3.1% 5.1% 3.5% 15.8% 21.4% 24.7% 63.9% AT CZ SK US DE HU RO IT GB Other EUR CZK USD
Slide 66: Trading assets as of 30 September 2012
Balance sheet (IFRS) drill-down – Trading assets as of 30 September 2012 − Decline of close to EUR 700m in EUR m Sovereign Banks Other Total Trading CZ 1,586 37.1% 0 0.0% 4 0.9% 1,590 30.7% SK 551 12.9% 0 0.0% -1 -0.2% 551 10.6% RO 466 10.9% 3 0.6% 0 0.1% 469 9.0% HU 1,187 27.7% 0 0.1% 20 4.4% 1,207
Slide 67: Financial assets at fair value as of 30 September 2012
Balance sheet (IFRS) drill-down – Financial assets at fair value as of 30 September 2012 − Decline of EUR 1bn due to the reduction in non-core assets in EUR m Sovereign Banks Other Total FV CZ 189 81.8% 41 14.8% 0 0.0% 230 28.4% SK 28 12.2% 1 0.4% 14 4.7% 43 5.3% RO 5 2.3% 0 0.0% 3 0.9% 8 1.0% HU 0
Slide 68: Financial assets available for sale as of 30 Sept 2012
Balance sheet (IFRS) drill-down – Financial assets available for sale as of 30 Sept 2012 − Investment of surplus liquidity mainly in Austria, Slovakia, Czech Republic and in preparation for Basel 3 liquidity requirements in EUR m Sovereign Banks Other Total AfS CZ 1,918 13.7% 86 1.9% 79 1.7% 2,083 9
Slide 69: Financial assets held-to-maturity as of 30 Sept 2012
Balance sheet (IFRS) drill-down – Financial assets held-to-maturity as of 30 Sept 2012 − Investment of surplus liquidity mainly in Czech Republic, Austria, Slovakia, and Romania; preparation for Basel 3 liquidity requirements in EUR m Sovereign Banks Other Total HTM CZ 6,606 40.8% 260 16.8% 25 2.7%
Slide 70: Exclusively related to customer business
Off-balance sheet items – Exclusively related to customer business in EUR million 201209 201206 201203 2011 2010 Guarantees and warranties 6,569 6,861 6,842 6,920 7,826 of which: in relation to corporate business 5,778 6,076 6,084 6,170 Undrawn lines, loan commitments, promissory nots 14,991 14,794
Slide 71: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 71 London
Slide 72: Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-9 12 1-9 11 Rate and margin environment Cost/income ratio 41.8% 41.9% Return on equity 18.6% 17.3% 80% 71.9% 8% 67.3% 69.8% 69.7% 70.1% Sep 12 Dec 11 Change Erste Group stake 97.99% Solvency ratio 16.6% 13.1% 60%
Slide 73: Banca Comerciala Romana (BCR)
Key local entity data (IFRS, consolidated) – Banca Comerciala Romana (BCR) Key figures and ratios 1-9 12 1-9 11 Rate and margin environment Cost/income ratio 39.4% 40.1% Return on equity (14.1% ) 1.4% 150% 135.5% 134.6% 136.2% 140.0% 140.8% 15% Sep 12 Dec 11 Change Erste Group stake 93.27% 12% Solve
Slide 74: Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 1-9 12 1-9 11 Rate and margin environment Cost/income ratio 41.4% 39.3% Return on equity 18.6% 20.4% 100% 8% Sep 12 Dec 11 Change 83.4% 83.6% 79.5% 82.0% 77.9% Erste Group stake 100.0% 100.0% 80% Solvency ratio
Slide 75: Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-9 12 1-9 11 Rate and margin environment Cost/income ratio 37.3% 39.6% Return on equity 0.7% (37.0% ) 270% 12% Sep 12 Dec 11 Change Erste Group stake 99.94% 191.8% 10% 177.5% 177.6% 165.7% Solvency ratio 11.9% 17
Slide 76: Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 1-9 12 1-9 11 Rate and margin environment Cost/income ratio 38.7% 40.1% Return on equity 8.9% 11.2% 180% 6% Sep 12 Dec 11 Change 145% 150% 154% 155% 147% Erste Group stake 69.25% 150% 4.1% 4.1% Solvency ratio 17.6
Slide 77: Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 1-9 12 1-9 11 Rate and margin environment Cost/income ratio 62.8% 66.0% Return on equity 5.3% 6.8% 120% 105.3% 109.6% 20% Sep 12 Dec 11 Change 96.7% 100.4% 98.4% Erste Group stake 80.49% 100% 12.2% 12.7% 15% Solven
Slide 78: Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 1-9 12 1-9 11 Rate and margin environment Cost/income ratio 105.0% 95.2% Return on equity na 0.0% 500% 25% 23.3% Sep 12 Dec 11 Change 20.3% 23.5% Erste Group stake 100.0% 400% 20% Solvency ratio 17.9% 22.0% 300% 2
Slide 79: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 79 London
Slide 80: A real customer need is the reason for all business
Strategy – A real customer need is the reason for all business Customer banking in Central and Eastern Europe Eastern part of EU Focus on CEE, limited exposure to other Europe Retail Corporate Capital Public Interbank banking banking markets sector business Focus on local Large, local corporate Focu
Slide 81: Customer banking in the eastern part of the EU
Strategy – Customer banking in the eastern part of the EU Austria Czech Republic Slovakia − Leading retail and corporate bank Clients: 3.2m Clients: 5.2m Clients: 2.4m with 16.9 m customers in 8 Retail loans: 19.3% Retail loans: 24.0% Retail loans: 26.1% Retail dep.: 18.9% Retail dep.: 28.0% Retail
Slide 82: Erste Group's intangible asset split
Erste Group’s intangible asset split – Intangibles declined on BCR goodwill adjustment in Q2 Intangibles composition 6 5 in EUR billion 4 3.5 3.5 3.5 3.2 3.2 0.6 0.6 0.6 3 0.3 0.3 0.6 0.6 0.3 0.2 0.0 0.2 0.2 0.3 0.3 0.5 0.5 0.2 0.2 2 0.5 0.5 0.5 0.4 0.4 0.4 0.3 0.3 0.3 0.4 0.4 1 0.3 0.3 1.1 1.1 1.1
Slide 83: Quarterly income statement (IFRS)
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Net interest income 1,397.5 1,343.4 1,302.0 1,401.9 1,430.2 1,434.9 1,336.9 1,314.8 1,317.2 Net fee and commission income 452.4 472.5 455.2 450.9 445.9 435.2 430.3
Slide 84: Quarterly balance sheet (IFRS)
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Cash and balances with central banks 5,030 5,839 5,043 6,605 5,743 9,413 5,480 5,737 8,675 Loans and advances to credit institutions 14,464 12,496 16,471 13,
Slide 85: Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME GCIB Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Net interest income 1,212.6 1,177.0 1,105.1 1,087.0 1,057.7 132.2 149.2 128.2 129.0 123.8 Risk provisions for loans and advances (880.4) (388.0) (505.4
Slide 86: Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million EB Oesterreich Savings banks Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Net interest income 180.3 164.1 161.7 150.5 155.3 249.8 273.6 240.9 235.8 225.0 Risk provisions for loans and advances (27.5) (8.7) (31.4) (22.9)
Slide 87: Central and Eastern Europe sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) CEE - Details in EUR million Czech Republic Romania Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Net interest income 310.3 283.0 282.6 288.0 272.0 162.7 154.7 153.0 131.3 139.4 Risk provisions for loans and adva
Slide 88: Central and Eastern Europe sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) CEE - Details in EUR million Croatia Serbia Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Net interest income 66.8 67.1 64.1 64.8 62.9 8.9 9.3 8.7 9.4 8.5 Risk provisions for loans and advances (21.9) (37.0) (32.
Slide 89: Development of key financial ratios
Group statistical data – Development of key financial ratios in EUR million 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sep 12 Tier 1 Capital pursuant to Austrian Banking Act 1,753 2,125 2,337 3,800 3,912 4,377 5,112 6,185 6,674 7,448 11,450 12,219 11,909 11,684 Total own funds
Slide 90: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2012 results 30 October 2012 90 London
Slide 91: Total number of shares: 394,568,647
Shareholder structure – Total number of shares: 394,568,647 By investor By region ERSTE Other CaixaBank Stiftung 2.9% 9.9% 20.1% Continental Europe 27.5% Savings banks* Austria 45.5% 4.4% Employees 3.0% Retail UK & Institutional investors Ireland investors 5.8% 5.7% 56.7% North America Free float: 6
Slide 92: Investor Relations contacts
Investor Relations contacts − Erste Group Bank AG, Graben 21, 1010 Vienna Fax : +43 (0)5 0100-13112 E-mail: investor.relations@erstegroup.com Internet: http://www.erstegroup.com/investorrelations http://twitter.com/ErsteGroupIR http://www.slideshare.net/Erste_Group Erste Group IR App for iPad, iPhon