Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q1 2010 Earnings Presentation
83 slides from Erste Group Bank's earnings presentation, Apr 30, 2010
Slide 1: Erste Group – Q1 2010 results presentation
Erste Group – Q1 2010 results presentation 30 April 2010, Vienna Strong operating performance drives net profit growth Andreas Treichl, Chief Executive Officer Manfred Wimmer, Chief Financial Officer Bernhard Spalt, Chief Risk Officer
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: Q1 2010 executive summary – Encouraging start to FY 2010
Q1 2010 executive summary – Encouraging start to FY 2010 − Macroeconomic environment continued to stabilise in Q1 2010 − Economic recovery in Central and Eastern Europe driven by export demand, while domestic demand is still fragile − Gradual rise in industrial production is expected to support empl
Slide 4: Presentation topics
Presentation topics * − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix *) The following tables and texts may contain rounding differences. 30 April 2010 Teleconference Vienna 4 Q1 2010 Results
Slide 5: Erste Group business snapshot – Retail market leadership
Erste Group business snapshot – Retail market leadership in the eastern part of the EU Czech Republic Slovakia Ukraine Clients: 5.3m Retail loans: 27.4% Clients: 2.5m Clients: 0.1m Retail dep.: 29.4% Retail loans: 26.1% Retail loans: 1.7% Retail dep.: 27.7% Retail dep.: 0.3% Branches: 660 Branches:
Slide 6: Macroeconomic trends – What has changed in CEE in Q1 2010?
Macroeconomic trends – What has changed in CEE in Q1 2010? − Industrial output improved significantly Industrial production (yoy % change) thanks to rising exports 30 − Main driver behind recovery 20 − Unit labour costs declined in CEE as 10 productivity increased 0 -10 -20 − Perception of the regio
Slide 7: Macroeconomic trends – GDP growth and external balances in CEE
Macroeconomic trends – Focus: GDP growth and external balances in CEE − As CEE economies emerge from GDP growth in CEE recession, growth is set to return in 2010 5.0 2.6 2.8 − Growth is mainly driven by foreign demand 1.3 1.8 0.9 0.3 0.7 supporting industrial production while 0.0 -1.1 household cons
Slide 8: Macroeconomic trends – budget balances and public debt in CEE
Macroeconomic trends – Focus: budget balances and public debt in CEE − CEE benefits from lower levels of public debt Public debt/fiscal deficit in % of GDP 0 20 40 60 80 100 120 140 − Governments did not have to finance bank bailouts − Selected CEE countries had debt restructurings Greece 8.7 120 fo
Slide 9: Presentation topics
Presentation topics − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix 30 April 2010 Teleconference Vienna 9 Q1 2010 Results
Slide 10: Q1 2010 financial highlights – Solid margins and improving efficiency
Q1 2010 financial highlights – Solid margins and improving efficiency − Net profit up by 10.0% to EUR 255.2 million Cash earnings per share * − Lower Cash-EPS and Cash-ROE due to substantially enlarged capital base 1.2 1.04 − Issuance of participation capital in H1 09 (EUR 1.76 billion) 1.00 1.0 0.8
Slide 11: Q1 2010 financial highlights – Higher revenues and lower costs
Q1 2010 financial highlights – Higher revenues and lower costs drive operating result Operating income per quarter Operating expenses per quarter 2,500 1,200 976 984 953 1,922 1,921 1,922 1,936 1,000 920 927 2,000 1,814 88 91 94 82 141 in EUR million 160 105 in EUR million 144 199 93 460 472 800 1,5
Slide 12: Q1 2010 financial highlights – Operating result improves in all key segments
Q1 2010 financial highlights – Operating result improves in all key segments in EUR million Q1 10 Q1 09 Change Retail & SME 738.5 638.6 15.6% Austria 200.0 199.0 0.5% EB Oesterreich 95.0 73.9 28.6% Savings Banks 105.0 125.2 (16.1%) Central and Eastern Europe 538.4 439.5 22.5% Czech Republic 211.0 18
Slide 13: Presentation topics
Presentation topics − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix 30 April 2010 Teleconference Vienna 13 Q1 2010 Results
Slide 14: Erste Group's customer deposits
Erste Group’s customer deposits – Rising volumes and currency strength drive growth − Total customer deposits increased by 3.2% ytd Customer deposit trends by main segments − Deposit inflows and significant appreciation of CEE currencies resulted in strong deposit growth 125 113.5 113.3 112.0 115.6
Slide 15: Erste Group's loan book
Erste Group’s loan book – Loan demand remains insignificant − Customer loans increased by 0.9% ytd; up 3.1% yoy Customer loans by main segments * − Growth in Retail & SME loans in Austria and CEE ytd and yoy growth was driven mainly by appreciation of CHF and CEE 150 currencies vs euro 126.3 128.1 1
Slide 16: Erste Group's asset quality – Group trends
Erste Group’s asset quality – Group trends: stable new NPL formation, coverage up − Continued improvement in asset quality trends Erste Group: NPL ratio vs NPL coverage in Q1 2010 30% 65% − New NPL formation in Q1 2010 remained at the 25% lower levels seen in Q3 & Q4 2009 20% 59.3% 59.0% 60% 57.2% −
Slide 17: Erste Group's asset quality – Segment round-up
Erste Group’s asset quality – Segment round-up: better NPL coverage in Q1 2010 − Austria is the best-performing market NPL ratios in key segments − Level of NPLs has decreased for the third consecutive quarter, while NPL coverage has risen and portfolio quality improved (low risk category expanded b
Slide 18: Erste Group's risk costs
Erste Group’s risk costs – First decline in P&L risk costs since Q1 09 − Group risk costs (in relation to average customer loans) declined quarter-on-quarter from 189bps in Q4 Risk costs in key segments 09 to 164bps in Q1 10 − Up yoy (Q1 09: 117 bps), but at a declining pace as compared 700 607 to F
Slide 19: Erste Group's funding profile
Erste Group’s funding profile – Retail deposits remain a key pillar in the funding mix − Customer deposits are the main source of funding − Providing a solid funding base in all local currencies Evolution of Erste Group's funding mix − Reflected in loan/deposit ratio improvement to 112.7% − Increase
Slide 20: Erste Group's capital position – Further strengthening
Erste Group’s capital position – Further strengthening of the capital base − Total equity (IFRS) increased by EUR 0.8 Total capital reconciliation billion (+4.7%) year-to-date driven by: 18 16.1 16.9 0.3 0.2 0.3 -0.0 − Improved profitability 15 3.4 3.6 in EUR billion − Strengthening CEE currencies a
Slide 21: Erste Group's capital position – Improving capital ratios
Erste Group’s capital position – Continuing improvement of capital ratios Tier 1 ratio Tier 1 ratio Core tier 1 ratio (credit risk)1 (total risk)2 (total risk)3 11.0% 10.8% 9.4% 9.2% 8.5% 8.3% 7.2% 6.2% 5.2% 2008 2009 Q1 10 2008 2009 Q1 10 2008 2009 Q1 10 1) Tier 1 ratio (credit risk) = tier 1 capit
Slide 22: Outlook – Q1 2010 supports cautious optimism for FY 2010
Outlook – Q1 2010 supports cautious optimism for FY 2010 − Market environment continues to improve gradually… − Erste Group’s CEE markets have either emerged or are about to emerge from recession − Erste Group’s CEE markets will show better growth than the rest of Europe thanks to: − Lower debt/GDP
Slide 23: Presentation topics
Presentation topics − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix 30 April 2010 Teleconference Vienna 23 Q1 2010 Results
Slide 24: Group income statement (IFRS)
Group income statement (IFRS) – Strong operating income drives profitability in Q1 10 in EUR million Q1 10 Q1 09 Change Net interest income 1,323.6 1,226.0 8.0% Risk provisions for loans and advances (531.2) (370.2) 43.5% Net fee and commission income 471.5 444.6 6.1% Net trading result 141.2 143.8
Slide 25: Group balance sheet (IFRS) – Loan-to-deposit ratio improvement
Group balance sheet (IFRS) – Improvement in loan-to-deposit ratio to 112.7% in EUR million Mar 10 Dec 09 Change Cash and balances with central banks 5,965 5,996 (0.5%) Loans and advances to credit institutions 16,123 13,140 22.7% Loans and advances to customers 130,255 129,134 0.9% Risk provisions f
Slide 26: Group balance sheet (IFRS) – Deposit inflows drive growth
Group balance sheet (IFRS) – Balance sheet growth is driven by deposit inflows in EUR million Mar 10 Dec 09 Change Deposits by banks 25,605 26,295 (2.6%) Customer deposits 115,595 112,042 3.2% Debt securities in issue 30,596 29,612 3.3% Trading liabilities 3,302 3,157 4.6% Provisions 1,646 1,670 (1.
Slide 27: Core segments – Retail & SME, GCIB performed well
Core segments – Retail & SME, GCIB segments performed well in Q1 10 Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 1-3 10 1-3 09 1-3 10 1-3 09 1-3 10 1-3 09 1-3 10 1-3 09 1-3 10 1-3 09 Net interest income 1,129.1 1,092.4 147.6 138.7 31.4 58.4 15.4 (63.5) 1,323.6 1,226.0
Slide 28: Core segment – Austria
Core segment – Austria Erste Bank Oesterreich almost doubles net profit Savings Banks EB Oesterreich Austria in EUR million 1-3 10 1-3 09 1-3 10 1-3 09 1-3 10 1-3 09 Net interest income 230.5 246.7 158.9 158.7 389.4 405.3 Risk provisions (65.3) (67.0) (44.8) (36.4) (110.1) (103.3) Net fee and commis
Slide 29: Core segment Central and Eastern Europe (1)
Core segment Central and Eastern Europe (1) – Strong operating result and declining qoq risk costs… Czech Republic Romania Slovakia Hungary in EUR million 1-3 10 1-3 09 1-3 10 1-3 09 1-3 10 1-3 09 1-3 10 1-3 09 Net interest income 264.5 268.9 213.1 194.8 103.5 83.7 88.9 72.9 Risk provisions (97.2) (
Slide 30: Core segment Central and Eastern Europe (2)
Core segment Central and Eastern Europe (2) – … underpin net profit profitability in CEE Croatia Serbia Ukraine CEE in EUR million 1-3 10 1-3 09 1-3 10 1-3 09 1-3 10 1-3 09 1-3 10 1-3 09 Net interest income 56.1 50.7 6.1 7.7 7.5 8.3 739.8 687.1 Risk provisions (25.3) (9.0) (2.2) (1.4) (5.4) (14.6) (
Slide 31: Segment Retail & SME – Deceleration in risk cost growth
Segment Retail & SME – Strong deceleration in risk cost growth in Q1 2010 − Retail & SME segment is the key profit contributor at Segment operating performance Erste Group 2,000 1,622 1,637 1,473 1,551 1,558 1,500 808 853 − Net profit down by 6.0% yoy, but nearly doubled qoq 1,000 639 708 738 in EUR
Slide 32: 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 120 105.0 106.8 108.9 108.6 110.0 100% 2.2% 2.2% 2.2% 2.3% 5.6 5.6 5.7 14.7% 14.3% 14.2% 14.4% 4.5 5.0 80% 90 in EUR billion 22.5% 22.7% 21
Slide 33: Segment GCIB – Net profit growth
Segment GCIB – Net profit growth due to higher revenues, flat risk costs − Operating result up 9.0% yoy (-5.6% qoq) to EUR Segment operating performance 145.4m − Revenues improved by 7.3% yoy mainly supported by NII 250 (+6.4% yoy), driven by re-pricing of loans in 2009 and selective 202 189 200 176
Slide 34: Segment GCIB – Loan book analysis
Segment GCIB – Loan book analysis* Segment GCIB - Segment GCIB - Customer loans by currency Customer loans by Basel II customer segment 30 100% 3.4% 1.2% 3.2% 1.3% 3.6% 1.3% 4.6% 1.3% 7.0% 6.4% 5.5% 5.7% 14.0% 12.5% 12.5% 13.4% 20.3 20.5 20.3 80% 19.5 19.6 in EUR billion 20 1.2 1.1 1.1 1.1 1.2 60% 4
Slide 35: Segment Group Markets – Solid result
Segment Group Markets – Solid result despite decline in net profit − Operating result declined by 31.4% yoy, but nearly Segment operating performance tripled qoq − Based on declining operating income and rising costs 250 214 229 − Distorted comparison due to exceptional market environment in 174 bas
Slide 36: Segment Corporate Center – Performance continues to improve
Segment Corporate Center – Performance continues to improve − What is in the Corporate Center? Segment operating performance − Business areas which cannot be allocated to relevant 40 business lines, one-offs and Group ALM 18 20 0 in EUR million − Line-item analysis -20 (21) (18) (16) -40 (26) − NII
Slide 37: Retail & SME: Austria/EB Oesterreich – Improvements on all fronts
Retail & SME: Austria/EB Oesterreich – Improvements on all fronts – net profit almost doubles − Operating result improved by 28.6% yoy (+12.2% qoq) Segment operating performance − NII was up by 0.2% yoy to EUR 158.9m (+4.2% qoq) on deposit volume growth and better corporate lending margins, which 30
Slide 38: Retail & SME: Austria/EB Oesterreich – 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 26.0 26.1 26.4 100% 1.8% 1.7% 1.9% 1.9% 25.8 25.7 15.5% 15.2% 15.1% 15.3% 1.4 1.3 1.4 1.4 1.4 80% in EUR billion 20
Slide 39: Retail & SME: Austria/Savings banks – Limited impact
Retail & SME: Austria/Savings banks – Limited impact on group net profit − Operating result down by 16.1% yoy and Segment operating performance 28.3% qoq 400 358 353 356 − NII was down by 6.6% yoy (3.9% qoq) due to decline 335 339 in market interest rates 300 − Fee income increased by 4.9% yoy (-8.9
Slide 40: Retail & SME: Austria/Savings banks – 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 35.0 34.8 35.3 35.9 36.1 100% 3.0% 3.2% 3.0% 3.3% 1.4 1.5 1.5 1.6 1.6 19.7% 19.3% 18.9% 19.3% 80% 30 in EUR billion 14.
Slide 41: Retail & SME: Czech Republic – Strong operating result
Retail & SME: Czech Republic – Strong operating result absorbs higher risk costs − Operating result improved by 13.4% (+7.1% FX- adjusted)1 yoy to EUR 211.0m Segment operating performance − NII declined by 1.6% yoy (-7.1%), up by 1.3% qoq; pressure on 500 liability margins through lower market inter
Slide 42: Retail & SME: Czech Republic – Loan book analysis
Retail & SME: Czech Republic – Segment Czech Republic: loan book analysis * Segment Czech Republic - Segment Czech Republic - Customer loans by Basel II customer segment Customer loans by currency 20 17.7 17.3 100% 0.2% 3.8% 0.1% 3.4% 0.1% 3.3% 0.1% 3.4% 16.9 16.7 15.9 0.6 0.6 0.7 16 0.7 0.5 80% in
Slide 43: Retail & SME: Romania – Higher risk costs
Retail & SME: Romania – Higher risk costs (yoy) lead to decline in net profit − Operating result improved by 9.5% yoy (up 7.4% FX- Segment operating performance adjusted)1, down 13.5% qoq − NII up 9.4% (7.3%) supported by improved NII in the corporate 350 306 and municipality businesses on the back
Slide 44: Retail & SME: Romania – Loan book analysis
Retail & SME: Romania – Segment Romania: loan book analysis * Segment Romania - Segment Romania - Customer loans by currency Customer loans by Basel II customer segment 15 100% 2.4% 2.0% 2.1% 2.2% 10.7 11.0 11.2 11.2 11.4 12 80% in EUR billion 0.8 0.8 1.2 1.2 1.3 54.3% 55.9% 56.6% 56.4% 9 60% 4.2 4.
Slide 45: Retail & SME: Slovakia – Return to pre-crisis net profitability
Retail & SME: Slovakia – Return to pre-crisis net profitability − Operating result increased by 60.0% yoy (-2.6% qoq) − NII improved substantially by 23.7% yoy on the back of strong Segment operating performance growth in retail loans and selective deposit growth; NII up 4.4% qoq based on retail loa
Slide 46: Retail & SME: Slovakia – Loan book analysis
Retail & SME: Slovakia – Segment Slovakia: loan book analysis * Segment Slovakia - Segment Slovakia - Customer loans by Basel II customer segment Customer loans by currency 8 100% 0.8% 0.8% 0.7% 0.4% 5.4 5.5 5.7 5.7 5.5 80% 6 in EUR billion 0.1 0.1 0.1 0.1 0.1 1.9 1.9 1.8 1.5 60% 2.0 4 0.4 0.3 0.3 9
Slide 47: Retail & SME: Hungary – Rise in operating income
Retail & SME: Hungary – Rise in operating income fully absorbs higher risk costs − Operating result nearly doubled: +95.0% (+78.9% FX- Segment operating performance adjusted)1 yoy; up 2.4% qoq − Strongly supported by NII, which rose 22.0% yoy (+11.9%), due 150 130 131 122 119 to ability to re-price
Slide 48: Retail & SME: Hungary – Loan book analysis
Retail & SME: Hungary – Segment Hungary: loan book analysis * Segment Hungary - Segment Hungary - Customer loans by currency Customer loans by Basel II customer segment 10 100% 0.4% 0.5% 0.6% 0.4% 21.1% 22.0% 22.6% 21.7% 8 7.2 7.2 7.3 7.4 80% 7.0 in EUR billion 0.3 0.3 0.3 0.4 0.3 6 2.3 2.4 2.4 2.4
Slide 49: Retail & SME: Croatia – Solid operating result
Retail & SME: Croatia – Solid operating result partly offsets higher risk costs − Operating result improved by 12.9% (+11.0% FX- adjusted)1 to EUR 40.8m yoy, down 16.1% qoq Segment operating performance − NII continued to improve by 10.6% (+8.8%) due to higher 100 margins in the corporate business a
Slide 50: Retail & SME: Croatia – Loan book analysis
Retail & SME: Croatia – Segment Croatia: loan book analysis * Segment Croatia - Segment Croatia - Customer loans by currency Customer loans by Basel II customer segment 6 100% 0.1% 0.2% 0.2% 0.2% 15.9% 15.3% 15.4% 15.6% 4.6 4.8 4.7 4.7 4.2 0.5 0.3 0.3 80% 0.4 in EUR billion 0.1 4 1.6 1.7 1.7 1.9 1.9
Slide 51: Retail & SME: Serbia – Net loss
Retail & SME: Serbia Low interest rates and higher risk costs lead to net loss − Operating result decreased by 57.7% yoy (-55.4% FX- Segment operating performance adjusted)1 to EUR 1.3m in Q1 10, down 29.4% qoq − NII declined by 21.2% (-16.9%) due to significant drop in local 15 market interest rate
Slide 52: Retail & SME: Serbia – Loan book analysis
Retail & SME: Serbia – Segment Serbia: loan book analysis * Segment Serbia - Segment Serbia - Customer loans by currency Customer loans by Basel II customer segment 600 100% 1.3% 1.2% 0.9% 3.2% 0.9% 3.3% 518.2 517.0 3.6% 3.6% 464.6 459.0 9.2 8.9 424.8 2.3 2.2 80% in EUR million 2.4 400 360.8 355.3 6
Slide 53: Retail & SME: Ukraine – Decline in risk costs
Retail & SME: Ukraine – Decline in risk costs leads to reduction in net loss − Operating result turned negative in Q1 10; down yoy Segment operating performance and qoq due to absence of meaningful lending activities since Q4 08 15 − NII has declined slightly yoy due to lower NII from customer 11 10
Slide 54: Retail & SME: Ukraine – Loan book analysis
Retail & SME: Ukraine – Segment Ukraine: loan book analysis * Segment Ukraine - Segment Ukraine - Customer loans by currency Customer loans by Basel II customer segment 800 100% 2.0% 2.0% 1.9% 1.6% 598.2 80% 600 0.0 556.5 544.8 in EUR million 77.8 0.0 504.4 509.0 0.0 69.4 0.0 0.0 69.1 125.1 63.3 64.
Slide 55: Presentation topics
Presentation topics − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structu
Slide 56: Key topics: ABS/CDO portfolio – Continued decrease in exposure
Key topics: ABS/CDO portfolio Continued decrease in exposure as prices improve − Face value declined by EUR 42 million in Q1 2010 − Redemptions and amortisations of EUR 78 million − Divestments of EUR 24 million ABS/CDO portfolio by book (March 2010)* − No impairments in EUR m Face Value Market Valu
Slide 57: Key topics: ABS/CDO portfolio – Detailed portfolio analysis
Key topics: ABS/CDO portfolio Detailed portfolio analysis ABS/CDO portfolio by ratings March 2010)* ABS/CDO portfolio by region March 2010)* % of total % of total in EUR m Face Value Market Value +/-% in EUR m Face Value Market Value +/-% (market value) (market value) AAA 296 271 (8.3%) 14.9% USA 91
Slide 58: Presentation topics
Presentation topics − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structu
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: Erste Group's asset quality – Loan book overview
Erste Group’s asset quality – Loan book overview * Customer loans by Basel II customer segments Customer loans by industries 150 128.1 130.0 129.1 130.3 5.9% 126.3 6.7 7.0 3.3% 3.9% 5.9 6.1 6.7 3.2% 120 4.9% 38.2% in EUR billion 90 60.8 61.4 61.6 61.0 60.7 4.8% 60 13.4 13.7 13.8 13.4 13.5 5.7% 30 46
Slide 61: Asset quality analysis – Loan book by segments
Asset quality analysis – Loan book by segments Low risk Mgmt attention Substandard Non-performing Total loan book Risk provisions NPL coverage NPL ratio Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Retail & SME 78,296 77,484 18,436 1
Slide 62: Asset quality analysis – Loan book by regions
Asset quality analysis – Loan book by regions (country of origination) Low risk Mgmt attention Substandard Non-performing Total loan book in EUR million Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Share of total Share of total Core market 84,715 85,141 21,019 20,937 6,244 5
Slide 63: Asset quality analysis – Loan book by industry sectors
Asset quality analysis – Loan book by industry sectors Low risk Mgmt attention Substandard Non-performing Total loan book in EUR million Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Share of total Share of total Agriculture and forestry 1,030 1,040 578 596 170 142 170 155 1,
Slide 64: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (31 March 2010: EUR 35.4 bn) (31 March 2010: EUR 35.4 bn) 19.2% 3.4%3.0% 3.7% 24.6% 9.0% 3.5% 4.2% 15.3% 8.2% 12.9% 65.6% 4.8% 8.0% 7.5% 7.0% AT CZ SK DE US IT HU RO GB Other EUR CZK USD
Slide 65: Presentation topics
Presentation topics − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structu
Slide 66: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-3 10 1-3 09 Rate and margin environment Cost/income ratio 42.1% 44.4% Return on equity 19.3% 18.2% 80% 70.3% 70.9% 72.9% 72.5% 8% Mar 10 Dec 09 Change 68.1% Erste Group stake 97.99% Solvency ratio 12.2% 12.3% 60%
Slide 67: Key local entity data – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 1-3 10 1-3 09 Rate and margin environment Cost/income ratio 34.6% 39.5% 148.4% 145.6% 143.1% 143.2% 143.6% Return on equity 13.9% 20.2% 150% 15% Mar 10 Dec 09 Change Erste Group stake 69.17% 13.3% 12% Solvency ratio 12.5% 11.9%
Slide 68: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) * – Slovenska sporitelna Key figures and ratios 1-3 10 1-3 09 Rate and margin environment Cost/income ratio 43.5% 58.1% Return on equity 14.9% 9.5% 100% 8% Mar 10 Dec 09 Change 77.5% 76.5% Erste Group stake 100.0% 80% 70.5% 70.5% 71.2% Solvency ratio 10.4%
Slide 69: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-3 10 1-3 09 Rate and margin environment Cost/income ratio 40.6% 53.8% Return on equity 9.8% 12.6% 270% 247.4% 12% Mar 10 Dec 09 Change 216.2% Erste Group stake 99.94% 194.1% 182.1% 10% Solvency ratio 13.2% 13.0%
Slide 70: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 1-3 10 1-3 09 Rate and margin environment Cost/income ratio 41.3% 42.6% 118.4% 117.0% Return on equity 8.7% 14.6% 11.5% 110.2% 113.4% 111.9% 120% 12% Mar 10 Dec 09 Change Erste Group stake 65.03% 100% 8.6% Solvenc
Slide 71: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 1-3 10 1-3 09 Rate and margin environment Cost/income ratio 80.6% 69.2% Return on equity n.a. 5.9% 140% 17.6% 20% Mar 10 Dec 09 Change Erste Group stake 80.49% 120% 14.7% 99.8% 119.9% 12.8% 95.8% 15% Solvency ratio
Slide 72: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 1-3 10 1-3 09 Rate and margin environment Cost/income ratio 79.1% 69.6% 19.0% Return on equity na na 1200% 20% Mar 10 Dec 09 Change 995.4% 1000% 15.2% Erste Group stake 100.0% 16.6% 763.5% 15% Solvency ratio 22.9%
Slide 73: Presentation topics
Presentation topics − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structu
Slide 74: Erste Group historic financials – Quarterly income statement
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Net interest income 1,154.9 1,267.3 1,339.8 1,226.0 1,279.3 1,335.6 1,380.0 1,323.6 Net fee and commission income 510.3 486.8 482.1 444.6 443.6 425.1 459.5 471.5 Net tra
Slide 75: Erste Group historic financials – Quarterly balance sheet
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Jun 07 Sep 07 Dez 07 Mär 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Cash and balances with central banks 6,753 7,311 7,615 7,783 6,854 7,692 7,556 5,897 6,897 5,458 5,996 5,965 Loans and advances to credi
Slide 76: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME Group Corporate & Investment Banking Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Net interest income 1,092.4 1,105.8 1,174.0 1,160.2 1,129.1 138.7 134.1 141.9 155.8 147.6 Risk provisions (287.8) (453.
Slide 77: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Net interest income 158.7 166.3 159.9 152.5 158.9 246.7 224.4 246.2 239.8 230.5 Risk provisions (36.4) (37.9) (39.2) (38.0) (44.8) (67.0)
Slide 78: Quarterly segment reporting – CEE sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) in EUR million Czech Republic Romania Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Net interest income 268.9 261.1 292.0 261.0 264.5 194.8 196.0 199.5 246.5 213.1 Risk provisions (41.2) (79.5) (82.3) (84.9) (97.
Slide 79: Quarterly segment reporting – CEE sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Net interest income 50.7 57.2 57.6 58.0 56.1 7.7 8.1 6.1 6.2 6.1 Risk provisions (9.0) (16.8) (19.6) (29.1) (25.3) (1.4) (2.6) (2.1) (0.
Slide 80: Presentation topics
Presentation topics − Business snapshot and macro trends − Q1 2010 financial highlights − Q1 2010 key topics − Q1 2010 financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structu
Slide 81: Group statistical data – Tier and solvency ratios within target ranges
Group statistical data* – Tier 1 and solvency ratios within target ranges in EUR million 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Mar 10 Tier 1 Capital pursuant to Austrian Banking Act 1,611 1,753 2,125 2,337 3,800 3,912 4,377 5,112 6,185 6,674 7,448 11,450 11,652 Total own funds
Slide 82: Shareholder structure
Shareholder structure – Total number of shares: 377,925,086 By investor By region Criteria CaixaCorp Other 10.1% Continental 0.1% Europe Capital Research 20.6% 26.1% 5.1% Austria UK & Ireland 49.9% Employees 11.2% 3.2% Savings banks 5.9% Institutional investors Retail investors 6.3% North America 43
Slide 83: 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: www.erstegroup.com Reuters: ERST.VI Bloomberg: EBS AV Datastream: O:ERS ISIN: AT0000652011 − Investor relations Gabriele Werzer Tel: +43 (0)5 0100-112