Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q1 2025 Earnings Presentation
50 slides from Erste Group Bank's earnings presentation, Apr 30, 2025
Slide 1: Q1 25 results presentation
Q1 25 results presentation Vienna, 30 April 2025 Strong capital position, good growth & solid bottom line Peter Bosek, CEO Erste Group Stefan Dörfler, CFO Erste Group Alexandra Habeler-Drabek, 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 CORRECTNES
Slide 3: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 3
Slide 4: Core revenues on track, with fees performing best
EXECUTIVE SUMMARY: P&L PERFORMANCE Core revenues on track, with fees performing best QoQ net profit development YTD net profit development in EUR m in EUR m -5.1% +22.0% 783 14 62 3 7 743 743 30 100 9 63 47 609 125 14 57 Q4 24 Operating Operating Risk costs Other Taxes on Minorities Q1 25 1-3 24 Ope
Slide 5: Robust operating efficiency, moderate risk costs push ROTE above target
EXECUTIVE SUMMARY: P&L DASHBOARD Robust operating efficiency, moderate risk costs push ROTE above target Net interest margin Cost/income ratio Risk cost ratio in % in % in bps G25: <50% G25: ~25 bps 2.49 2.45 2.46 2.43 34 2.33 18 16 15 51.4 6 48.0 46.0 46.3 45.1 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1
Slide 6: Healthy customer business growth continues
EXECUTIVE SUMMARY: BALANCE SHEET PERFORMANCE Healthy customer business growth continues YTD total asset development YTD equity & total liability development in EUR bn in EUR bn +1.2% 358.0 358.0 0.0 0.3 1.1 0.7 2.0 2.4 0.2 353.7 0.3 353.7 3.4 4.7 4.5 1.2 31/12/24 Cash Trading, Loans to Net loans Int
Slide 7: Strong balance sheet metrics
EXECUTIVE SUMMARY: BALANCE SHEET DASHBOARD Strong balance sheet metrics Loan/deposit ratio Loan & deposit growth Asset quality in % yoy, in % in % G25: ~5% 83.7 80.6 78.7 90.2 89.4 5.8 88.4 89.0 4.9 74.6 87.9 72.5 3.1 3.5 2.7 2.3 2.4 2.4 2.6 2.5 4.6 3.8 1.7 -0.4 -1.2 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25
Slide 8: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 8
Slide 9: CEE set to grow in 2025 and 2026 despite trade tensions
MACROECONOMIC AND BUSINESS UPDATE: ECONOMIC FORECASTS * CEE set to grow in 2025 and 2026 despite trade tensions Real GDP growth Consumer price inflation Unemployment rate 2025 in % avg, in % avg, in % 2026 5.0 8.6 8.3 3.4 3.6 4.0 4.4 4.1 5.3 3.1 2.8 2.6 3.9 3.8 3.3 3.2 3.2 3.3 5.2 5.0 5.3 5.2 5.2 1.
Slide 10: Retail business growth continues
MACROECONOMIC AND BUSINESS UPDATE: RETAIL BUSINESS Retail business growth continues Loan book rises on improving loan demand Retail net customer loans *) − Housing loan volumes improve across the group as customer demand is supported in EUR bn by lower rates − New business volumes for consumer loans
Slide 11: Corporate loan momentum continues
MACROECONOMIC AND BUSINESS UPDATE: CORPORATES & MARKETS BUSINESS Corporate loan momentum continues Loan growth in wholesale business and strong fee performance Net loan stock of Corporate segment − Large Corporate segment remains key growth driver, mainly driven by investment activities in AT, while
Slide 12: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 12
Slide 13: Return to more balanced loan growth
OPERATING TRENDS: NET LOAN STOCK AND GROWTH Return to more balanced loan growth Net loan stock Growth rates Growth run rate exceeds 5% for the first time since Q2 23 − Yoy growth more pronounced in Retail than in Corporate business, 208.1 0.9% up 7.1% vs 5.5%, with retail growth mostly driven by RO,
Slide 14: Continued healthy deposit growth
OPERATING TRENDS: CUSTOMER DEPOSIT STOCK AND GROWTH Continued healthy deposit growth Customer deposits Growth rates Erste Group’s favourable deposit mix is a key competitive advantage – overweight retail, sight, LCY deposits 235.3 1.9% Group 241.7 4.6% 246.1 Key Q1 25 deposit drivers 44.8 0.9% AT/EB
Slide 15: Solid NII trends in CEE, softer in Austria
OPERATING TRENDS: NET INTEREST INCOME (NII) AND NET INTEREST MARGIN (NIM) Solid NII trends in CEE, softer in Austria Net interest income Net interest margin NII consolidates near record levels in Q1 25 − NII up 1.1% yoy, with increase driven by strong performance in CEE 1,852 and ALM, partly offset
Slide 16: Strong fee performance drives guidance upgrade
OPERATING TRENDS: NET FEE AND COMMISSION INCOME Strong fee performance drives guidance upgrade Net fee income by segment Net fee income by fee type in EUR m in EUR m +9.5% 0.0% 780 780 780 780 735 34 7 33 7 735 19 31 712 711 712 711 23 23 35 7 16 26 31 6 33 7 84 83 27 23 72 67 78 Other 27 21 69 73 6
Slide 17: Operating expenses up 4.8% yoy on higher personnel costs
OPERATING TRENDS: OPERATING EXPENSES Operating expenses up 4.8% yoy on higher personnel costs Operating expenses by segment Operating expenses by type in EUR m in EUR m -8.5% +4.8% 1,470 1,470 102 1,345 1,345 Residual other admin 1,283 30 176 1,283 1,265 61 1,265 1,262 53 74 66 23 Other 1,262 102 De
Slide 18: Operating efficiency well inside guidance
OPERATING TRENDS: OPERATING RESULT AND COST/INCOME RATIO (CIR) Operating efficiency well inside guidance Operating result Cost/income ratio in EUR m in % -3.2% 1,536 1,505 1,468 18 80 18 1,390 1,458 Other 18 72 75 143 72 7 69 16 152 133 122 RS 122 109 105 115 119 118 HR 168 159 164 175 HU G25: <50 %
Slide 19: Risk costs remain moderate in Q1 25
OPERATING TRENDS: CREDIT RISK/RISK COSTS Risk costs remain moderate in Q1 25 Risk costs by segment * Risk cost ratio * in EUR m in bps 186 78 86 G25: ~25 bps Other RS 95 85 HR 31 HU 18 34 SK 15 9 6 RO 18 16 15 CZ AT/OA 6 AT/SB AT/EBOe 2020 2021 2022 2023 2024 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 2
Slide 20: Asset quality across CEE remains strong, deterioration in Austria slows
OPERATING TRENDS: CREDIT RISK/ASSET QUALITY Asset quality across CEE remains strong, deterioration in Austria slows NPL ratio NPL coverage ratio NPL ratio and NPL coverage (exc collateral) improve − Fewer defaults result in lower NPL inflows 2.3 in % 83.7 in % Group 2.6 72.5 − Strong work-out activi
Slide 21: Other result impacted by higher banking taxes, provisions
OPERATING TRENDS: OTHER RESULT Other result impacted by higher banking taxes, provisions Other result by segment Other result by accounting categories in EUR m in EUR m Other RS 0 0 HR -15 -59 HU -27 SK RO -57 -121 CZ -86 -57 -51 AT/OA -1 -127 AT/SB -129 -48 AT/EBOe -127 -129 -190 -193 -193 -190 Q1
Slide 22: Q1 25 ROTE > 15% despite one-offs, upfront bookings
OPERATING TRENDS: NET RESULT, EARNINGS PER SHARE (EPS) & RETURN ON TANGIBLE EQUITY (ROTE) Q1 25 ROTE > 15% despite one-offs, upfront bookings Net result by segment EPS & ROTE in EUR m in EUR -5.1% 886 19.5% 846 783 Other 17.2% 17.2% 743 609 RS 15.2% HR 11.5% HU SK 2.14 RO 1.87 1.87 1.82 CZ 1.33 AT/O
Slide 23: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 23
Slide 24: Vast retail deposit base provides competitive funding advantage
WHOLESALE FUNDING AND CAPITAL: ISSUED DEBT AND INTERBANK FUNDING Vast retail deposit base provides competitive funding advantage Liabilities and equity Debt securities Interbank deposits Comments in EUR bn in EUR bn in EUR bn Highly granular and well- diversified Retail & SME 353.7 358.0 deposit bas
Slide 25: 2025 funding plan well on track
WHOLESALE FUNDING AND CAPITAL: LONG TERM FUNDING 2025 funding plan well on track Maturity profile of debt 9.1 in EUR bn 7.5 5.7 5.5 5.4 3.4 2.8 2.0 1.3 1.0 1.0 0.1 0.1 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037+ Debt CEE Tier 2 Covered bonds Senior non-preferred bonds Senior un
Slide 26: RWAs decline on positive Basel 4 effect
WHOLESALE FUNDING AND CAPITAL: CAPITAL AND RISK-WEIGHTED ASSETS (RWA) RWAs decline on positive Basel 4 effect Basel 3 capital (phased-in) Risk-weighted assets (phased-in) in EUR bn in EUR bn +1.5% 152.7 154.8 157.2 149.4 151.6 7.4 6.6 6.5 6.8 6.1 16.2 16.3 16.7 21.1 +9.2% 16.4 30.1 30.9 31.4 28.7 29
Slide 27: CET 1 ratio surpasses 16%, mainly driven by CRR3 implementation
WHOLESALE FUNDING AND CAPITAL: COMMON EQUITY TIER 1 (CET1), TIER 1 AND TOTAL CAPITAL RATIOS CET 1 ratio surpasses 16%, mainly driven by CRR3 implementation CET 1 ratio development (pro-forma) Basel 3 capital ratios (reported, phased-in) in % in % 20.7 0.06 0.01 16.22 0.09 19.7 19.7 0.47 19.2 19.3 0.
Slide 28: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 28
Slide 29: 2025 fee guidance upgraded, all other 2025 targets confirmed
FINANCIAL OUTLOOK 2025 fee guidance upgraded, all other 2025 targets confirmed Variable 2025 guidance Key assumptions/additional comments Real GDP ~ +1-4% GDP growth remains on the agenda despite trade tensions Loans ~ +5% Supported by solid loan demand in most markets NII ~ ±0% Lower rates to be of
Slide 30: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX: ERSTE GROUP BASICS, ERSTE GROUP DETAILED FINANCIALS & ERSTE GROUP ESG PROFILE Page 30
Slide 31: Banking leadership in Central and Eastern Europe (1)
APPENDIX: ERSTE GROUP‘S GEOGRAPHIC FOOTPRINT Banking leadership in Central and Eastern Europe (1) Czech Republic Slovakia Customers: 4.6m Customers: 2.0m Hungary Employees: 9,639 Employees: 3,556 Customers: 1.1m Branches: 336 Branches: 155 Employees: 3,408 Retail loan share: 27.0% Retail loan share:
Slide 32: Banking leadership in Central and Eastern Europe (2)
APPENDIX: ERSTE GROUP STRATEGY (1) Banking leadership in Central and Eastern Europe (2) Eastern part of EU Focus on CEE, limited exposure to other Europe Retail Corporate Capital Public Interbank banking banking markets sector business Acting as financial SME and large Focus on customer Financing so
Slide 33: Strategy: continuity & progress
APPENDIX: ERSTE GROUP STRATEGY (2) Strategy: continuity & progress Strategic continuity… … and strategic progress Full commitment to growth Elevating George to the next level − Organic growth: fully capturing existing and emerging growth − Rolling out digital client advice in a structured way, there
Slide 34: Commanding market shares across the CEE region
APPENDIX: MARKET SHARES Commanding market shares across the CEE region Gross retail loans Retail deposits Gross corporate loans Corporate deposits 21.4% 24.1% 24.4% 22.2% AT 21.7% AT 24.6% AT 24.7% AT 22.7% 26.7% 24.4% 22.3% 13.8% CZ 27.0% CZ 24.2% CZ 22.6% CZ 13.9% 27.0% 24.2% 22.7% 13.9% 24.5% 27.
Slide 35: Strong track record of profitability
APPENDIX: ERSTE GROUP FINANCIALS/PROFIT AND LOSS ACCOUNT Strong track record of profitability Year-to-date view Quarterly view in EUR million 1-3 24 1-3 25 YOY-Δ Q1 24 Q4 24 Q1 25 YOY-Δ QOQ-Δ Net interest income 1,852.4 1,872.1 1.1% 1,852.4 1,937.6 1,872.1 1.1% -3.4% Interest income 3,966.0 3,548.8
Slide 36: Strong balance sheet dominated by customer loans
APPENDIX: ERSTE GROUP FINANCIALS/BALANCE SHEET/ASSETS Strong balance sheet dominated by customer loans Quarterly data Change in EUR million Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 YOY-Δ YTD-Δ QOQ-Δ Cash and cash balances 29,425 26,231 23,972 25,129 23,940 -18.6% -4.7% -4.7% Financial assets held for trad
Slide 37: Liabilities dominated by retail deposits
APPENDIX: ERSTE GROUP FINANCIALS/BALANCE SHEET/ EQUITY AND LIABILITIES Liabilities dominated by retail deposits Quarterly data Change in EUR million Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 YOY-Δ YTD-Δ QOQ-Δ Financial liabilities held for trading 1,805 2,003 1,770 1,821 2,094 16.0% 15.0% 15.0% Derivatives
Slide 38: Capital requirements for 2025 slightly up on higher buffers
APPENDIX: REGULATORY CAPITAL POSITION/REQUIREMENT (SREP – SUPERVISORY REVIEW AND EVALUATION PROCESS) Capital requirements for 2025 slightly up on higher buffers Erste Group Consolidated Erste Group Unconsolidated 2023 2024 Q1 2025 YE 2025 2023 2024 Q1 2025 YE 2025 Pillar 1 CET1 requirement 4.50% 4.5
Slide 39: MREL compliance at point of entry level (bail-in)
APPENDIX: MULTIPLE POINT OF ENTRY (MPE) RESOLUTION STRATEGY MREL compliance at point of entry level (bail-in) Resolution Groups * Erste Group Bank AG 100% 69.3%** & Savings Banks + other subs 100% 100% 99.9% Banca Česká Slovenská Erste Bank Erste Bank Comercială spořitelna sporiteľňa Hungary Croatia
Slide 40: Austrian resolution group: MREL requirement based on RWA fulfilled
APPENDIX: DETAILS ON AUSTRIAN RESOLUTION GROUP Austrian resolution group: MREL requirement based on RWA fulfilled MREL capacity based on TREA (RWA)* Key take-aways Erste Group adopted multiple point of entry (MPE) in % 40.06% resolution approach − In Q2 24, Erste Group Bank AG received its MREL requ
Slide 41: MREL issuance progresses to plan
APPENDIX: MULTIPLE POINT OF ENTRY (MPE) RESOLUTION STRATEGY MREL issuance progresses to plan MPE resolution groups MREL issuance plan (by year-end 2025) 206 ~1,000 – 2,000 in EUR bn, in EUR m 93 as of Mar 2025 82 28 27 25 15 ~350-500 13 14 11 ~250-350 ~250-350 7 6 ~50-150 ~0-150 AT CZ SK RO HR HU Ho
Slide 42: Erste Group benefits from a highly diversified loan book
APPENDIX: GROSS CUSTOMER LOANS BY RISK CATEGORY, CURRENCY AND INDUSTRY Erste Group benefits from a highly diversified loan book Gross customer loans by industry By currency By business segment 222.2 224.3 in EUR bn 4.0 0.1 2% 2% 0% 0% 3.9 0.1 1% 1% Other Other 3.6 3.5 22% 1% 23% 1% 27% 27% 5.8 4.4 5
Slide 43: Real estate snapshot
APPENDIX: CREDIT RISK/EXPOSURE HIGHLIGHT: REAL ESTATE (RE) Real estate snapshot Sound lending standards − Income producing projects (>80%) − Ring-fenced, A-class buildings in prime locations with risk-mitigating structures − Highly collateralised business with conservative valuation approach (applic
Slide 44: Financial asset portfolio contributes to net interest income
APPENDIX: FINANCIAL ASSET DRILL-DOWN Financial asset portfolio contributes to net interest income Financial assets – geographic view Financial assets – accounting view AC by issuer and currency in EUR bn +19.3% 68.2 64.2 3% 3% 6% 57.2 17.5 5% 14% 15% 15.9 12.2 3.0 3.1 6% 1% 2.6 2.4 1.2 2.5 3.6 6.6 3
Slide 45: Erste Group's sustainability strategy is centered on two main pillars
APPENDIX: ESG PROFILE (1)/ESG STRATEGY OF ERSTE GROUP Erste Group’s sustainability strategy is centered on two main pillars GREEN TRANSITION SOCIAL INCLUSION • Our goal is to achieve net zero status for our portfolio • We enhance financial inclusion through our social by 2050, adhering to sector-spe
Slide 46: Portfolio towards our environmental targets
APPENDIX: ESG PROFILE (2)/ENVIRONMENT – NET-ZERO TARGET SETTING Portfolio towards our environmental targets Financed emissions Sustainable finance corporate Scope 3, financed emissions, covering EUR 190.5 bn exposure New specific purpose Sustainable Financing1 Committed amount (total), March 2025 in
Slide 47: Erste Group benefits from strong and well-diversified shareholder base
APPENDIX. SHAREHOLDER STRUCTURE Erste Group benefits from strong and well-diversified shareholder base By investor By region Erste Foundation direct 4.60% 5.96% 2.48% 0.23% Sparkassen Beteiligungs 0.23% 0.39% GmbH & Co KG 0.39% 16.20% 12.59% Foundations Wiener Städtische Austria 33.28% Versicherungs
Slide 48: Erste Group Bank AG boasts strong issuer ratings
APPENDIX: CREDIT RATINGS Erste Group Bank AG boasts strong issuer ratings Financial Profile SACP - Stand-Alone Credit Profile VR - Viability Rating Asset Risk baa1 a (Individual Rating ) Capital baa1 ▲ a Profitability baa3 Anchor bbb+ Funding Structure a2 Business position Strong +1 SRF - Support Ra
Slide 49: Geographical/operating and business segment view
APPENDIX: SEGMENT REPORTING STRUCTURE Geographical/operating and business segment view Erste Group – Geographical/operating segments Austria Central and Eastern Europe Other EBOe & Savings Other Czech − Holding ALM Slovakia Romania Hungary Croatia Serbia Subsidiaries Banks Austria Republic − Holding
Slide 50: Erste Group IR contact details
APPENDIX: INVESTOR RELATIONS CONTACTS AND SHARE INFO Erste Group IR contact details IR Team Role Phone Email Catherina Frass IR Assistant +4350100 17731 catherina.frass@erstegroup.com Gerald Krames IR Manager +4350100 12751 gerald.krames@erstegroup.com Peter Makray IR Manager +4350100 16878 peter.ma