Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Shareholder Meeting (May 2014)
46 slides from Erste Group Bank's shareholder meeting presentation, May 21, 2014
Slide 1: 21st Annual General Meeting of Erste Group Bank AG
21st Annual General Meeting of Erste Group Bank AG 21 May 2014 Austria Center Vienna
Slide 2: Friedrich Rödler, Chairman of the supervisory board
Friedrich Rödler Chairman of the supervisory board
Slide 3: First item: Report on the financial year 2013
First item on the agenda Report on the financial year 2013 AGM 2014 21 May 2014 3
Slide 4: Report on the financial year 2013 of Erste Group Bank AG (consolidated)
Report on the financial year 2013 of Erste Group Bank AG (consolidated) Andreas Treichl Chairman of the management board
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 – Weak domestic demand impacts economic growth
Operating environment – Weak domestic demand impacts economic growth Real GDP growth in Erste Group‘s core markets (in %) 3.5 2011 2013 3.0 3.0 2012 2014e 2.8 2.3 2.3 2.4 2.0 1.7 1.8 1.8 1.7 1.6 1.6 1.1 1.0 0.9 0.9 0.6 0.4 0.0 -0.2 -0.9 -0.9 -1.0 -1.5 2014e eurozone average: 1.1% -1.7 -1.9 AT CZ RO
Slide 7: Operating environment – Main components of real GDP growth
Operating environment – Main components of real GDP growth Contributions of domestic demand and net exports in 2013 (in %) 5.5 4.4 1.6 1.2 0.7 0.4 -0.3 -0.1 -0.7 -0.9 -0.8 -1.0 -1.0 -3.0 AT CZ RO SK HU HR RS Domestic demand Net exports AGM 2014 21 May 2014 7
Slide 8: Operating environment – Low government debt levels in CEE
Operating environment – Low government debt levels in CEE Public debt in Erste Group‘s core markets (in %, 2014e) 82.3 79.5 Eurozone avg. budget deficit: 2.5% Eurozone avg. public debt: 96.0% 67.6 68.4 57.1 44.8 39.3 -2.7 -1.7 -2.8 -2.7 -2.9 -5.5 -6.5 AT CZ RO SK HU HR RS Gen gov balance/GDP Public
Slide 9: Operating result – Cost/income ratio at 52.5%
Operating result – Cost/income ratio at 52.5% Operating income Operating expenses Operating result in EUR m in EUR m in EUR m -3.7% -2.7% -4.7% 7,230 3,757 3,473 6,961 3,654 3,308 273 367 293 352 1,721 1,810 1,106 1,069 5,235 4,858 2,284 2,232 2012 2013 2012 2013 2012 2013 Net trading result Depreci
Slide 10: Risk costs – Still elevated, continued significant decline
Risk costs – Still elevated, continued significant decline 5-year risk cost history in EUR m -13% 2,267 -11% 2,057 2,021 12 178 1,980 0 0 0 268 176 352 1,763 347 483 452 322 531 306 1,725 1,306 1,393 1,307 933 -12 2009 2010 2011 2012 2013 Group Markets Retail & SME: Austria GCIB Retail & SME: CEE AG
Slide 11: Post-provision operating profit – Continuation of positive trend
Post-provision operating profit – Continuation of positive trend 5-year post-provision operating profit history in EUR m 1,715 1,766 +10% +3% 1,493 1,544 1,361 2009 2010 2011 2012 2013 AGM 2014 21 May 2014 11
Slide 12: Results in CEE – Segment Retail & SME
Results in CEE – Segment Retail & SME 5-year post-provision operating profit history in EUR m +46% 1,051 931 884 +36% 722 529 2009 2010 2011 2012 2013 AGM 2014 21 May 2014 12
Slide 13: Results in CEE – Segment Retail & SME
Results in CEE – Segment Retail & SME 5-year post-provision profit history in EUR m 554 763 1,061 961 968 565 551 710 749 674 112 75 74 93 192 256 248 85 263 61 2 4 102 87 6 99 59 27 10 16 24 10 -24 -330 -493 2009 2010 2011 2012 2013 CZ RO SK HU HR RS Data aligned by contributions of EB Ukraine AGM
Slide 14: Other result – 2013: goodwill impairments and banking levies
Other result – 2013: goodwill impairments and banking levies Other result in EUR m (other operating result + results from financial assets) -454 -442 -692 -1,170 -1,683 2009 2010 2011 2012 2013 AGM 2014 21 May 2014 14
Slide 15: Banking taxes – Banking taxes slow down capital formation
Banking taxes – Banking taxes slow down capital formation +27% 311 +33.0% 41 Slovakia Hungary 246 Austria 32 185 103 0 49 53 50 165 167 132 0 50 0 2010 2011 2012 2013 In 2011, banking tax in Hungary was offset by the costs of repayment of foreign currency loans at non-market rates. In addition to th
Slide 16: Banking taxes – Significant burden on net profit
Banking taxes – Significant burden on net profit in EUR m Pre-tax profit (without banking tax) 685.3 Erste Group‘s Banking tax - 311.2 tax rate amounts to ~90% Tax payments - 311.0 Net profit 2013 ~61.0 AGM 2014 21 May 2014 16
Slide 17: Net profit – Reconciliation to underlying net profit
Net profit – Reconciliation to underlying net profit in EUR m -571.6 12.6 120.7 632.6 389.6 255.6 capital neutral 59.7 61.0 Underlying Positive tax Selling gains Goodwill Banking Deconsolidation Reported net profit effect in RO real estate/ impairments taxes EB Ukraine net profit financial assets AG
Slide 18: Dividend – Dividend of EUR 0.20 per share proposed to AGM
Dividend – Dividend of EUR 0.20 per share proposed to AGM 5-year dividend history in EUR 0.70 0.65 0.40 0.20 0.00 2009 2010 2011 2012 2013 AGM 2014 21 May 2014 18
Slide 19: Balance sheet – Loan/deposit ratio improves to 104.3%
Balance sheet – Loan/deposit ratio improves to 104.3% 5-year loan and deposit history in EUR bn -0.5% -3.2% 132.3 134.8 131.9 128.8 123.1 127.7 122.4 117.0 118.9 112.0 2009 2010 2011 2012 2013 Loans and advances to customers Customer deposits AGM 2014 21 May 2014 19
Slide 20: Balance sheet – Asset quality and coverage stable
Balance sheet – Asset quality and coverage stable Asset quality summary in % 14 63.0 63.1 70 62.6 62.4 61.7 12 60 10 9.4 9.7 9.6 9.6 50 9.2 8 40 6 30 4 20 2 10 0 0 31/12/12 31/3/13 30/6/13 30/9/13 31/12/13 NPL ratio NPL coverage (excl. collateral) AGM 2014 21 May 2014 20
Slide 21: Capital – Capital increase, redemption of participation capital
Capital – Capital increase, redemption of participation capital Core tier 1 capital Core tier 1 ratio in EUR m excl. participation capital (total risk) 11,848 11,199 11.4% 11,019 10,681 9.6% 7.7% 7.8% 31/12/10 31/12/11 31/12/12 31/12/13 31/12/10 31/12/11 31/12/12 31/12/13 AGM 2014 21 May 2014 21
Slide 22: Share price performance – Erste Group share rose by 5.4% in 2013
Share price performance – Erste Group share rose by 5.4% in 2013 in EUR 30 25 20 15 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 AGM 2014 21 May 2014 22
Slide 23: Q1 14 performance summary – Net result at EUR 103.3 m
Q1 14 performance summary – Net result at EUR 103.3 m, elevated tax rate Operating result Risk costs Loan/deposit NPL ratio in EUR m in EUR m ratio -4% -2% 758 98.0% 100.3% 727 372 364 9.6% 9.6% 1-3 13 1-3 14 1-3 13 1-3 14 Dec 13 Mar 14 Dec 13 Mar 14 Q1 data as well as comparative data on this slide
Slide 24: Challenges for the year 2014: Asset Quality Review and Stress Test
Challenges for the year 2014 Asset Quality Review and Stress Test − Stress test with harsh and to some extent inconsistent assumption, in particular for CEE − Stress factors comprise: − GDP, unemployment, inflation, interest rates, real estate prices, government bonds − Currency devaluations in CEE
Slide 25: Outlook
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 k
Slide 26: Slide 26
Slide 27: Friedrich Rödler – Agenda items
Friedrich Rödler Chairman of the supervisory board Agenda items
Slide 28: Second: Appropriation of the profit
Second item on the agenda Appropriation of the profit AGM 2014 21 May 2014 28
Slide 29: Third: Grant of discharge to the members of the management board
Third item on the agenda Grant of discharge to the members of the management board AGM 2014 21 May 2014 29
Slide 30: Fourth: Grant of discharge to the members of the supervisory board
Fourth item on the agenda Grant of discharge to the members of the supervisory board AGM 2014 21 May 2014 30
Slide 31: Fifth: Remuneration of the members of the supervisory board
Fifth item on the agenda Remuneration of the members of the supervisory board AGM 2014 21 May 2014 31
Slide 32: Sixth: Election to the supervisory board
Sixth item on the agenda Election to the supervisory board AGM 2014 21 May 2014 32
Slide 33: Seventh: Appointment of an additional auditor
Seventh item on the agenda Appointment of an additional auditor AGM 2014 21 May 2014 33
Slide 34: Eighth: Authorized capital resolution
Eighth item on the agenda Resolution on the revocation of the existing authorized capital and the new authorization to increase the registered capital against cash contribution and/or contribution in kind, with the possibility of the exclusion of the subscription rights. AGM 2014 21 May 2014 34
Slide 35: Ninth: Amendments of the articles of association
Ninth item on the agenda Amendments of the articles of association AGM 2014 21 May 2014 35
Slide 36: Q&A
21st Annual General Meeting Erste Group Bank AG Q&A
Slide 37: Resolutions
21st Annual General Meeting Erste Group Bank AG Resolutions
Slide 38: Second: Appropriation of the profit
Second item on the agenda Appropriation of the profit AGM 2014 21 May 2014 38
Slide 39: Third: Grant of discharge to the members of the management board
Third item on the agenda Grant of discharge to the members of the management board AGM 2014 21 May 2014 39
Slide 40: Fourth: Grant of discharge to the members of the supervisory board
Fourth item on the agenda Grant of discharge to the members of the supervisory board AGM 2014 21 May 2014 40
Slide 41: Fifth: Remuneration of the members of the supervisory board
Fifth item on the agenda Remuneration of the members of the supervisory board AGM 2014 21 May 2014 41
Slide 42: Sixth: Election to the supervisory board
Sixth item on the agenda Election to the supervisory board AGM 2014 21 May 2014 42
Slide 43: Seventh: Appointment of an additional auditor
Seventh item on the agenda Appointment of an additional auditor AGM 2014 21 May 2014 43
Slide 44: Eighth: Authorized capital resolution
Eighth item on the agenda Resolution on the revocation of the existing authorized capital and the new authorization to increase the registered capital against cash contribution and/or contribution in kind, with the possibility of the exclusion of the subscription rights. AGM 2014 21 May 2014 44
Slide 45: Ninth: Amendments of the articles of association
Ninth item on the agenda Amendments of the articles of association AGM 2014 21 May 2014 45
Slide 46: Thank you for your active participation!
21st Annual General Meeting Erste Group Bank AG Thank you for your active participation!