Slide 1: Erste Group investor presentation – FY 2012 preliminary results
Erste Group investor presentation – FY 2012 preliminary results 28 February 2013 Cost control, declining risk costs & higher capital ratios Andreas Treichl, CEO, Erste Group Manfred Wimmer, CFO, Erste Group Gernot Mittendorfer, CRO, Erste Group
Slide 2: 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 3: Executive summary – Erste Group improved capital substantially in 2012
Executive summary – Erste Group improved capital substantially in 2012 • Net profit of EUR 483.5m impacted by positive and negative one-off items Income statement – • All extraordinary items together resulted in a net negative effect of EUR 360.7m; banking tax FY 2012 view alone amounted to EUR 187.
Slide 4: Executive summary – Net profit adjusted for extraordinary effects
Executive summary – Net profit adjusted for extraordinary effects (EUR m) • 2012 positive extraordinary effects: EUR 380.1m (post-tax) • 2012 negative extraordinary effects: EUR 740.8m (post-tax) -360.7 56.8 323.3 456.2 844.2 187.4 Capital neutral 75.0 483.5 22.2 Underlying Hybrid Selling gains Good
Slide 5: 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 FY 2012 preliminary results 28 February 2013 presentation 5
Slide 6: Operating environment: macro trends – CEE continued to outgrow the euro zone
Operating environment: macro trends – CEE continued to outgrow the euro zone in 2012 − Eurozone’s weakness still a drag on Real GDP growth in Erste Group‘s core markets (in %) economic development in CEE 4.4 2010 2012e − Several countries following through with 3.2 2011 2013e austerity measures to l
Slide 7: Operating environment: macro trends – What happened in CEE over the last months?
Operating environment: macro trends – What happened in CEE over the last months? − AT: Despite positive fundamentals Austria’s export orientated economy started to be affected by declining demand in several of its key markets − CZ: Economy in shallow but protracted recession − Euro zone weakness, fi
Slide 8: Key financial indicators – EPS and ROE impacted by goodwill adjustments
Key financial indicators – EPS and ROE impacted by goodwill adjustments YTD cost income ratio YTD net interest margin 57.2% 3.04% 3.08% 51.5% 52.0% 2.97% 50.2% 50.2% 2.84% 2.80% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Cash earnings per share** Cash return on equity** 10.1% 9.7% 2.89 9.6% 9
Slide 9: Income statement (IFRS) FY 2012 – Continued solid underlying earnings power
Income statement (IFRS) FY 2012 – Continued solid underlying earnings power in EUR million 2012 2011 Change Comment Net interest income 5,235.3 5,569.0 (6.0%) Declining margins, non-core business reduction Risk provisions for loans (1,980.0) (2,266.9) (12.7%) Extraordinary risk costs (HU in 2011, RO
Slide 10: Income statement (IFRS) Q4 – Goodwill adjustment and sale of EB Ukraine
Income statement (IFRS) Q4 12 – Goodwill adjustment and sale of EB Ukraine in EUR million Q4 12 Q3 12 Change Comment Net interest income 1,266.4 1,317.2 (3.9%) Weaker money market contribution, valuations Risk provisions for loans (514.7) (483.5) 6.5% Risk costs up in HU & GCIB, down in CZ, AT, RO N
Slide 11: Balance sheet (IFRS) – RWAs decreased by EUR 8.7bn
Balance sheet (IFRS) – RWAs decreased by EUR 8.7bn or by 7.6% yoy in EUR million Dec 12 Dec 11 Change Comment Cash and balances with central banks 9,740 9,413 3.5% Loans and advances to credit institutions 9,074 7,578 19.7% Excess liquidity deposited with central banks Loans and advances to customer
Slide 12: Balance sheet (IFRS) – Net profit and OCI drove substantial increase in equity
Balance sheet (IFRS) – Net profit and OCI drove substantial increase in equity in EUR million Dec 12 Dec 11 Change Comment Deposits by banks 21,822 23,785 (8.3%) Lower funding requirements Customer deposits 123,053 118,880 3.5% Growth mainly in AT, CZ, SK & HU Debt securities in issue 29,427 30,782
Slide 13: Segment highlights – Improvement in CZ, EBOe, GM and HU, bottom in RO
Segment highlights – Improvement in CZ, EBOe, GM and HU, bottom in RO Top segment performers in FY 2012: Czech Republic Slovakia EB Oesterreich Group Markets in EUR million 2012 2011 ∆ 2012 2011 ∆ 2012 2011 ∆ 2012 2011 ∆ Operating income 1,581 1,634 (3%) 538 553 (3%) 953 1,007 (5%) 511 479 7% Operat
Slide 14: 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 FY 2012 preliminary results 28 February 2013 presentation 14
Slide 15: BCR turnaround – Track record in 2012
BCR turnaround – Track record in 2012 • New management (CEO, CFO, Retail) in place since May 2012 Key priorities • Additional changes on B-1 level, new COO Key priority #1: • 4th consecutive quarter of improving NPL provisioning coverage, now at 58.6% Improve asset • Annual provisioning peak reached
Slide 16: BCR turnaround – Main goals for 2013
BCR turnaround – Main goals for 2013* Key priorities • The road to profitability in 2013 Key priority #1: • Absolute NPL volume to peak and modestly decline in 2013 on the back of Improve asset reduced NPL inflows and doubled workout capacity quality • Risk provisions expected to decrease significan
Slide 17: 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 FY 2012 preliminary results 28 February 2013 presentation 17
Slide 18: Loan book review – Limited demand reflected in loan book
Loan book review – Limited demand reflected in loan book − Customer loans decreased by 2.1% yoy mainly Customer loans by main segments on reduction in Hungary, GCIB and Ukraine 150 − Decline in Hungary (FX conversion), Group Real Estate 134.7 134.8 133.9 133.5 131.9 business and targeted reduction i
Slide 19: Asset quality review – NPL ratio stable for 2nd consecutive quarter
Asset quality review – NPL ratio stable for 2nd consecutive quarter − Overall slight NPL reduction by EUR 147m qoq Erste Group: NPL ratio vs NPL coverage − NPL sales of EUR 212m in Q4 2012, mainly in BCR − Qoq NPL volume decreased in all countries except 30% 63.1% 62.6% 65% Croatia and Serbia; NPL v
Slide 20: Asset quality review – AT, CZ & SK improved, HU & RO remained challenging
Asset quality review – AT, CZ & SK improved, HU & RO remained challenging − Retail & SME/Austria: asset quality stable yoy NPL ratios in key segments − Risk costs remained at low level − NPL coverage ratio increased by 0.4pp yoy and low risk 30% 28.3% share increased in both EBOe and Savings banks s
Slide 21: Asset quality review – Risk costs decreased on stabilisation in Hungary
Asset quality review – Risk costs decreased on stabilisation in Hungary yoy − Slovakia: good quality loan growth continued − NPL ratio significantly declined from 8.0% to 6.6% yoy Risk costs in key segments − Loan growth is mainly driven by housing loans in the retail segment 10% 8% 6.65% − Czech Re
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 FY 2012 preliminary results 28 February 2013 presentation 22
Slide 23: Funding update – Continued strong customer deposit inflows
Funding update – Continued strong customer deposit inflows − Customer deposits grew by 3.5% yoy Customer deposit trends by main segments − Inflows in Czech Republic, Hungary, Slovakia, Croatia and EBOe 118.9 122.3 122.3 122.2 123.3 125 − Retail & SME deposits increased by 3.4% yoy 5.5 5.8 5.2 4.9 5.
Slide 24: Funding update – Excess liquidity position underpins LTRO repayment
Funding update – Excess liquidity position underpins LTRO repayment − 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 in 2012 100% 3.2% 3.2% 3.0% 3.0% 2.7% 90% 5.8% 8.5
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 FY 2012 preliminary results 28 February 2013 presentation 25
Slide 26: Capital position – CT1 ratio increased significantly in FY 2012
Capital position – CT1 ratio increased significantly in FY 2012 Capital position (Dec 2012) Recent developments Capital development Core tier 1 ratio − CT1 capital improved to EUR (total risk) 11.8bn (YE 2011: EUR 10.7bn) 11.2% CT1 (Basel 2.5) ratio 11.2% due to retained earnings and full recognitio
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 FY 2012 preliminary results 28 February 2013 presentation 27
Slide 28: Conclusion – Outlook
Conclusion – Outlook − Erste Group expects a slight improvement in economic performance for Central and Eastern Europe in 2013, even though growth will remain moderate − For 2013 Erste Group targets a stable operating result compared to 2012 − Slightly lower operating income as a result of moderate
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 FY 2012 preliminary results 28 February 2013 presentation 29
Slide 30: Segment review – Segments affected by one-off items in both periods
Segment review – Segments affected by one-off items in both periods Retail & SME GCIB Group Markets Corporate Center Total Group in EUR million 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 Net interest income 4,318.5 4,716.3 495.9 543.2 183.7 197.4 237.2 112.1 5,235.3 5,569.0 Risk provisions fo
Slide 31: Region – Austria
Region – Austria EBOe’s and savings banks’ net profit up yoy Savings banks EB Oesterreich Austria in EUR million 2012 2011 2012 2011 2012 2011 Net interest income 940.0 1,015.6 617.8 665.9 1,557.8 1,681.5 Risk provisions for loans and advances (225.9) (250.4) (96.2) (101.4) (322.1) (351.8) Net fee a
Slide 32: Region – Central and Eastern Europe (1)
Region – Central and Eastern Europe (1) Diverging trends in performance… Czech Republic Romania Slovakia Hungary in EUR million 2012 2011 2012 2011 2012 2011 2012 2011 Net interest income 1,113.8 1,183.3 572.4 672.3 424.9 445.7 335.2 402.7 Risk provisions for loans and advances (139.6) (210.5) (737.
Slide 33: Region – Central and Eastern Europe (2)
Region – Central and Eastern Europe (2) …and risk cost levels across the region continued Croatia Serbia Ukraine CEE in EUR million 2012 2011 2012 2011 2012 2011 2012 2011 Net interest income 253.7 261.8 37.1 36.4 23.6 32.6 2,760.7 3,034.8 Risk provisions for loans and advances (137.4) (109.3) (9.0)
Slide 34: Segment Retail & SME – Net profit up on lower risk costs
Segment Retail & SME – Net profit up on lower risk costs and improved other result − Operating result down as reduced operating expenses in EUR million 2012 2011 Change did not fully offset decrease in operating income Net interest income 4,318.5 4,716.3 (8.4%) − Operating income decreased by 6.4% y
Slide 35: Segment Retail & SME – 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 120 114.4 114.4 114.2 114.4 113.6 100% 2.2% 2.0% 2.2% 2.1% 1.7% 6.7 6.7 6.4 6.3 6.6 13.7% 13.1% 12.5% 11.5% 11.0% 80% 21.4% 90 21.0% 21.6% 21
Slide 36: Segment GCIB excl IB – Net result declined
Segment GCIB excl IB – Net result declined on higher risk costs and lower fees − Operating result declined on lower fee income − NII declined mainly due to reduction of customer loans in real in EUR million 2012 2011 Change estate portfolio Net interest income 420.3 433.5 (3.0%) − Fee income decreas
Slide 37: International Business (GCIB) – Exposure actively reduced
International Business (GCIB) – Exposure actively reduced to EUR 3.2bn as of Dec 12 − Targeted reduction of business visible in International Business unit result in EUR million 2012 2011 Change − NII on declining trend in line with constant reduction of Net interest income 75.6 109.7 (31.1%) busine
Slide 38: Segment GCIB (incl IB) – 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 5.4% 5.4% 100% 4.5% 4.9% 5.3% 19.8 19.8 1.7% 1.6% 1.5% 1.5% 1.5% 20 19.2 18.8 5.7% 6.3% 6.0% 7.3% 6.9% 1.4 1.3 1.2 17.9 80% 9.3% 8.3% 8.2% 7.4% 7.0% 1.2
Slide 39: Segment Group Markets – Solid net profit contribution in 2012
Segment Group Markets – Solid net profit contribution in 2012 − Operating result improved on increased net trading result and strict cost management in EUR million 2012 2011 Change − NII decreased in 2012 mainly due to money market and Net interest income 183.7 197.4 (6.9%) government bonds business
Slide 40: Segment Corporate Center – Result impacted by one-offs
Segment Corporate Center – Result impacted by one-offs − What is in the Corporate Center? − This segment includes the intragroup consolidation between in EUR million 2012 2011 Change segments and sub-segments, the results of those sub-segments Net interest income 237.2 112.1 >100.0% that cannot be d
Slide 41: Retail & SME: Austria/EB Oesterreich – Net profit up
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 low interest rate environment in EUR million 2012 2011 Change − Customer deposits increased by 4.1% ytd Net interest income 61
Slide 42: Retail & SME: Austria/EB Oesterreich – Loan book analysis
Retail & SME: Austria/EB Oesterreich – Loan book analysis Sub-Segment EB Oesterreich - Sub-Segment EB Oesterreich - Customer loans by Basel II customer segment Customer loans by currency 30 28.2 28.1 28.2 28.2 28.1 100% 1.9% 1.8% 1.9% 1.9% 1.6% 1.8 1.8 1.8 1.8 1.8 14.4% 14.2% 13.6% 12.5% 11.8% in EU
Slide 43: Retail & SME: Austria/Savings banks – Increased net profit
Retail & SME: Austria/Savings banks – Increased net profit on improved other result − Operating result decreased year-on-year due to weaker net interest income in EUR million 2012 2011 Change − NII decreased as a result of the lower interest rate environment Net interest income 940.0 1,015.6 (7.4%)
Slide 44: Retail & SME: Austria/Savings banks – Loan book analysis
Retail & SME: Austria/Savings banks – Loan book analysis Sub-Segment Savings Banks - Sub-Segment Savings banks - Customer loans by Basel II customer segment Customer loans by currency 40 37.6 37.4 37.6 37.7 37.7 100% 3.4% 3.4% 3.6% 3.5% 3.3% 1.6 1.6 1.6 1.6 1.7 18.9% 18.5% 17.1% 15.5% 14.5% 30 80% i
Slide 45: Retail & SME: Czech Republic – Lower risk costs
Retail & SME: Czech Republic – Lower risk costs & stable FX adjusted operating result − Stable FX adjusted yoy operating result − NII down due to low interest rate environment in 2012 in EUR million 2012 2011 Change − Net fee income declined on decreased payment and securities Net interest income 1,
Slide 46: Retail & SME: Czech Republic – Loan book analysis
Retail & SME: Czech Republic – Loan book analysis Sub-Segment Czech Republic - Sub-Segment Czech Republic - Customer loans by Basel II customer segment Customer loans by currency 20 17.8 17.8 17.9 0.3% 0.2% 0.2% 0.2% 0.2% 17.2 17.3 100% 3.7% 3.4% 3.8% 3.4% 3.5% 0.7 0.7 0.6 0.6 0.7 16 5.5 5.7 5.7 80%
Slide 47: Retail & SME: Romania – Restructuring is well underway
Retail & SME: Romania – Restructuring is well underway − Operating result decreased yoy on lower NII in EUR million 2012 2011 Change − Lower operating expenses and strong trading result Net interest income 572.4 672.3 (14.9%) softened decline − RON depreciation, lower margins and NPL inflow all led
Slide 48: Retail & SME: Romania – Loan book analysis
Retail & SME: Romania – Loan book analysis Sub-Segment Romania - Sub-Segment Romania - Customer loans by Basel II customer segment Customer loans by currency 12 11.2 11.1 11.0 10.8 100% 1.7% 1.7% 1.7% 1.4% 1.3% 10.7 1.3 1.2 1.0 1.0 1.2 80% 9 in EUR billion 4.4 4.5 60.6% 61.1% 61.3% 61.7% 61.2% 4.4 4
Slide 49: Retail & SME: Slovakia – Solid bottom line performance
Retail & SME: Slovakia – Solid bottom line performance despite banking tax − Operating result down against strong FY 2011 − NII declined mainly on lower margins and liquidity surplus in EUR million 2012 2011 Change invested in lower yielding assets Net interest income 424.9 445.7 (4.7%) − Relatively
Slide 50: Retail & SME: Slovakia – Loan book analysis
Retail & SME: Slovakia – Loan book analysis Sub-Segment Slovakia - Sub-Segment Slovakia - Customer loans by Basel II customer segment Customer loans by currency 8 6.3 6.3 6.4 6.6 100% 0.3% 0.1% 0.2% 0.1% 0.2% 6.2 0.2 6 0.2 0.3 0.2 0.2 1.3 80% in EUR billion 1.3 1.2 1.3 1.3 0.3 0.3 0.3 0.3 0.3 4 60%
Slide 51: Retail & SME: Hungary – Adapting to the new business environment
Retail & SME: Hungary – Adapting to the new business environment − Operating result down as a consequence of lower business volumes in EUR million 2012 2011 Change − NII declined on portfolio reduction (FX-conversion) and lower Net interest income 335.2 402.7 (16.8%) margins and weak loan demand − R
Slide 52: Retail & SME: Hungary – Loan book analysis
Retail & SME: Hungary – Loan book analysis Sub-Segment Hungary - Sub-Segment Hungary - Customer loans by Basel II customer segment Customer loans by currency 10 100% 0.2% 0.2% 0.2% 0.1% 0.1% 8 22.0% 22.3% 21.2% 22.0% 21.2% 7.1 6.9 6.8 80% 0.4 6.5 6.2 0.4 in EUR billion 0.4 0.3 6 2.1 0.3 2.1 2.0 1.9
Slide 53: Retail & SME: Croatia – Solid result impacted by risk costs
Retail & SME: Croatia – Solid result impacted by increase in risk costs − Operating result down slightly yoy − Net interest income declined somewhat on reduced NIM in EUR million 2012 2011 Change − Lower fee income due to transfer of credit card processing Net interest income 253.7 261.8 (3.1%) subs
Slide 54: Retail & SME: Croatia – Loan book analysis
Retail & SME: Croatia – Loan book analysis Sub-Segment Croatia - Sub-Segment Croatia - Customer loans by Basel II customer segment Customer loans by currency 5.9 6.0 6.0 5.9 5.9 6 100% 0.3% 0.2% 0.3% 0.2% 0.2% 0.7 0.7 0.7 0.6 0.7 13.0% 12.8% 12.6% 12.2% 11.9% 80% in EUR billion 4 2.5 2.5 2.5 2.5 2.4
Slide 55: Retail & SME: Serbia – Operating performance and net result improved
Retail & SME: Serbia – Operating performance and net result improved FY 2012 − Operating result up on higher NII, fee income and positive net trading result in EUR million 2012 2011 Change − NII up by 1.9% yoy in EUR, but up 13.0% FX-adjusted on loan Net interest income 37.1 36.4 1.9% growth and on
Slide 56: Retail & SME: Serbia – Loan book analysis
Retail & SME: Serbia – Loan book analysis Sub-Segment Serbia - Sub-Segment Serbia - Customer loans by Basel II customer segment Customer loans by currency 600 569.2 0.9% 0.9% 0.9% 0.8% 0.7% 539.2 3.4 100% 3.8% 3.8% 3.8% 3.3% 3.2% 485.6 482.4 481.0 4.3 2.8 3.4 3.6 80% in EUR million 400 334.7 328.1 2
Slide 57: Retail & SME: Ukraine – Agreement to sell Erste Bank Ukraine
Retail & SME: Ukraine – Agreement to sell Erste Bank Ukraine signed in Q4 2012 − Net loss on weaker operating result in EUR million 2012 2011 Change − Net interest income down on portfolio reduction and shrinking Net interest income 23.6 32.6 (27.6%) margins − Net fee income improved on the back of
Slide 58: 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 FY 2012 preliminary results 28 February 2013 presentation 58
Slide 59: Asset quality analysis – 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 60: Asset quality analysis – Loan book overview
Asset quality analysis – Loan book overview Customer loans by Basel II customer segments Customer loans by industries 150 134.7 134.8 133.9 133.5 131.9 8.2 8.0 7.6 7.5 7.8 5.8% 120 3.1%3.7% 2.8% 5.0% 39.4% in EUR billion 62.1 62.5 62.3 61.8 60.4 5.4% 90 60 13.2 13.0 12.9 12.8 12.6 4.7% 30 6.7% 51.2
Slide 61: Asset quality analysis – Loan book by segments
Asset quality analysis – Loan book by segments Management Low risk attention Substandard Non-performing Total loan book Risk provisions NPL coverage NPL ratio Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Retail & SME 83,171 80,952 16
Slide 62: Asset quality analysis – Loan book by region
Asset quality analysis – Loan book by region (country of origination) Low risk Management Substandard Non-performing Total loan book attention in EUR million Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Share of total Share of total Core market 90,219 89,007 18,191 21,768 3,
Slide 63: Asset quality analysis – Total exposure by region
Asset quality analysis – Total exposure by region (country of origination) Low risk Management Substandard Non-performing Total Exposure attention in EUR million Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Dec 12 Dec 11 Share of total Share of total Core market 145,789 142,947 20,790 25,
Slide 64: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (31 Dec 2012: EUR 41.6 bn) (31 Dec 2012: EUR 41.6 bn) 4.5% 5.8% 2.0% 12.7% 1.0%1.3% 28.5% 3.1% 8.3% 4.6% 4.9% 3.0% 21.4% 21.1% 14.3% 63.4% AT CZ SK US DE HU RO IT GB Other EUR CZK USD HU
Slide 65: Balance sheet drill-down – Trading assets
Balance sheet (IFRS) drill-down – Trading assets as of 31 December 2012 − Decline of EUR 700 million due to the reduction of non-core assets in EUR m Sovereign Banks Other Total Trading CZ 1,881 43.4% 0 0.0% 10 2.1% 1,890 36.5% SK 285 6.6% 0 0.0% 0 0.0% 285 5.5% RO 587 13.5% 3 0.7% 1 0.3% 591 11.4%
Slide 66: Balance sheet drill-down – Financial assets at fair value
Balance sheet (IFRS) drill-down – Financial assets at fair value as of 31 December 2012 − Decline of more than EUR 1bn due to the reduction of non-core assets in EUR m Sovereign Banks Other Total FV CZ 130 52.6% 36 15.5% 5 2.3% 171 23.9% SK 25 9.9% 0 0.0% 10 4.2% 34 4.8% RO 5 1.9% 0 0.0% 4 1.7% 9 1.
Slide 67: Balance sheet drill-down – Financial assets available for sale
Balance sheet (IFRS) drill-down – Financial assets available for sale as of 31 Dec 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 1,815 13.3% 105 2.5% 110 2.4% 2,029
Slide 68: Balance sheet drill-down – Financial assets held-to-maturity
Balance sheet (IFRS) drill-down – Financial assets held-to-maturity as of 31 Dec 2012 − Investment of surplus liquidity mainly in Austria, Czech Republic, Slovakia, and Romania; preparation for Basel 3 liquidity requirements in EUR m Sovereign Banks Other Total HTM CZ 6,423 38.9% 259 15.5% 25 3.2% 6
Slide 69: Drill-down on selected asset classes – Reduction of peripheral Europe exposure
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 Dec 12 Dec 10 Dec 11 Dec 12 Dec 10 Dec 11 Dec12 De
Slide 70: Off-balance sheet items – Exclusively related to customer business
Off-balance sheet items – Exclusively related to customer business in EUR million 201212 201209 201206 201203 2011 2010 Guarantees and warranties 6,363 6,569 6,861 6,842 6,920 7,826 of which: in relation to corporate business 5,584 5,778 6,076 6,084 6,170 Undrawn lines, loan commitments, promissory
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 FY 2012 preliminary results 28 February 2013 presentation 71
Slide 72: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 2012 2011 Change Rate and margin environment Cost/income ratio 41.0% 41.8% Return on equity 19.2% 18.2% 80% 71.9% 69.8% 69.7% 70.1% 69.4% 8% Dec 12 Dec 11 Erste Group stake 98.97% 60% 6% Solvency ratio 16.0% 13.1% 3
Slide 73: Key local entity data – Banca Comerciala Romana (BCR)
Key local entity data (IFRS, consolidated) – Banca Comerciala Romana (BCR) Key figures and ratios 2012 2011 Change Rate and margin environment Cost/income ratio 41.6% 41.0% Return on equity (17.4% ) 1.0% 150% 134.6% 136.2% 140.0% 140.8% 140.6% 15% Dec 12 Dec 11 Erste Group stake 93.27% 12% Solvency
Slide 74: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 2012 2011 Change Rate and margin environment Cost/income ratio 42.1% 39.6% Return on equity 16.9% 20.0% 100% 8% 83.4% 83.6% 82.0% 84.3% Dec 12 Dec 11 Change 79.5% Erste Group stake 100% 80% 6% Solvency ratio 19.
Slide 75: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 2012 2011 Change Rate and margin environment Cost/income ratio 39.0% 37.2% Return on equity (2.3% ) (103.1% ) 270% 12% Dec 12 Dec 11 Change Erste Group stake 100% 191.8% 10% 177.6% 165.7% Solvency ratio 11.7% 17.2
Slide 76: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 2012 2012 Change Rate and margin environment Cost/income ratio 38.3% 38.6% Return on equity 8.4% 11.6% 180% 150% 155% 6% 154% 147% 150% Dec 12 Dec 11 Erste Group stake 69.3% 150% 4.1% 3.6% Solvency ratio 17.4% 15.
Slide 77: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 2012 2011 Change Rate and margin environment Cost/income ratio 62.6% 64.9% 109.6% 114.5% Return on equity 10.1% 6.8% 120% 105.3% 20% Dec 12 Dec 11 100.4% 98.4% Erste Group stake 80.5% 100% 12.7% 15% Solvency ratio
Slide 78: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 2012 2011 Change Rate and margin environment Cost/income ratio 131.7% 102.0% Return on equity na na 500% 25% Dec 12 Dec 11 20.3% 25.0% 23.3% 23.5% Erste Group stake 100.0% 400% 20% Solvency ratio 18.0% 22.0% 300%
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 FY 2012 preliminary results 28 February 2013 presentation 79
Slide 80: Strategy – 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: Strategy – 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: 3.3m Clients: 5.3m Clients: 2.4m with 16.9 m customers in 8 Retail loans: 19.3% Retail loans: 23.8% Retail loans: 26.5% Retail dep.: 18.9% Retail dep.: 27.7% Retail
Slide 82: Erste Group's intangible asset split
Erste Group’s intangible asset split – Intangibles declined mainly on BCR goodwill adjustment Intangibles composition 5 4 3.5 3.5 in EUR billion 3.2 3.2 0.6 0.6 2.9 3 0.6 0.6 0.3 0.3 0.2 0.2 0.3 0.6 0.3 0.5 0.5 0.2 0.2 0.3 2 0.5 0.2 0.4 0.5 0.4 0.5 0.3 0.3 0.4 0.4 1 0.3 0.3 0.4 0.3 1.1 1.1 0.9 0.8 0
Slide 83: Erste Group historic financials – Quarterly income statement
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Net interest income 1,343.4 1,302.0 1,401.9 1,430.2 1,434.9 1,336.9 1,314.8 1,317.2 1,266.4 Net fee and commission income 472.5 455.2 450.9 445.9 435.2 430.3 435.2
Slide 84: Erste Group historic financials – Quarterly balance sheet
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Cash and balances with central banks 5,839 5,043 6,605 5,743 9,413 5,480 5,737 8,675 9,740 Loans and advances to credit institutions 12,496 16,471 13,373 13,
Slide 85: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME GCIB Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Net interest income 1,177.0 1,105.1 1,087.0 1,057.7 1,068.7 149.2 128.2 129.0 123.8 114.9 Risk provisions for loans and advances (388.0) (505.4) (329.3
Slide 86: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million EB Oesterreich Savings banks Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Net interest income 164.1 161.7 150.5 155.3 150.3 273.6 240.9 235.8 225.0 238.3 Risk provisions for loans and advances (8.7) (31.4) (22.9) (27.2)
Slide 87: Quarterly segment reporting – CEE sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) CEE - Details in EUR million Czech Republic Romania Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Net interest income 283.0 282.6 288.0 272.0 271.2 154.7 153.0 131.3 139.4 148.7 Risk provisions for loans and adva
Slide 88: Quarterly segment reporting – CEE sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) CEE - Details in EUR million Croatia Serbia Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Net interest income 67.1 64.1 64.8 62.9 61.9 9.3 8.7 9.4 8.5 10.5 Risk provisions for loans and advances (37.0) (32.2) (38
Slide 89: Group statistical data – 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 Dec 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 12,223 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 FY 2012 preliminary results 28 February 2013 presentation 90
Slide 91: Shareholder structure – Total number of shares: 394,568,647
Shareholder structure – Total number of shares: 394,568,647 By investor By region CaixaBank ERSTE Other Austria Versicherungsv. 9.9% Stiftung 2.9% Privatstiftung 20.1% Continental 4.4% Europe 27.5% Savings banks* Austria 4.3% 45.5% Employees 3.0% Retail investors UK & Institutional Ireland 5.8% inve
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