Slide 1: Erste Bank - year starts with a strong quarter, Q1 2005 Results Teleconference
> Erste Bank - year starts with a strong quarter > Q1 2005 Results > Teleconference Vienna, 6 May 2005 > Andreas Treichl, CEO Reinhard Ortner, CFO Gabriele Werzer, IR
Slide 2: Presentation topics
> Presentation topics 1. Q1 2005 Financial Highlights 2. Q1 2005 Financial Statements 3. Divisional Information 4. Asset quality 5. Outlook and Targets 6. Appendix NB From 1 January 2005 the revised IASB standards IAS 32 (Financial Instruments: Disclosure and Presentation) and IAS 39 (Financial Inst
Slide 3: Q1 2005 – Financial highlights
> Q1 2005 – Financial highlights » Net Profit + 71.1% to EUR 160.3m Cash EPS » Total Assets + 6.0% to EUR 148.2bn 0.67 » Tier 1 Ratio at 6.8% 0.40 0.39 0.38 0.33 0.28 » Cost/Income Ratio 62.4% » ROE 18.0% Q1 00 Q1 01 Q1 02 Q1 03 Q1 04 Q1 05 Cost-Income Ratio Cash ROE 18.0% 18.0% 70.2% 14.9% 15.1% 13
Slide 4: Q1 2005 – Operating performance per segment
> Q1 2005 – Operating performance per segment Strong improvement of Austrian retail segment and CE subsidiaries EUR m Q1 05 Q1 04 % Change Austria 216.1 217.6 (0.7) Savings banks 90.1 96.5 (6.6) Retail & Mortgage 55.1 44.1 25.0 Retail Branches 22.4 17.2 30.0 SME 6.2 4.1 53.0 Own savings banks 14.5 1
Slide 5: Key figures of EB subsidiaries in Central Europe
> Key figures of EB subsidiaries in Central Europe Q1 2005 Results (IFRS) as reported by local entities 1 2 3 EB stake 97.97% 100.00% 99.90% 61.95% Q1 05 Q1 04 +/-% Q1 05 Q1 04 +/-% Q1 05 Q1 04 +/-% Q1 05 Q1 04 +/-% Net Profit (EUR m) 76.7 87.6 (12.4%) 23.6 18.9 25.2% 18.3 8.6 >100% 11.4 15.0 (24.2%
Slide 6: Asset Management
> Asset Management Growth continues in all areas EUR bn Total market size 131.4 132 117.4 102 » Total group assets under mgmt in CE 72 Q1 2004 Q1 2005 and Austria: EUR 26.0 bn. 42 12.2 12 » 28% market share in CE; 18% in 10 7.9 Austria (local funds) 8 6 5.5 3.8 » All local subsidiaries grew 4 3.3 2.
Slide 7: New Group Architecture update
> New Group Architecture update Projects proceeding according to plan » Retail 2008 » Retail Board set up; responsible for initiatives covering Structured Investment Products, Consumer Finance, Target Product Catalogue, Micro Business, Sales Management techniques » First phase well underway - busine
Slide 8: Presentation Topics
> Presentation Topics 1. Q1 2005 Financial Highlights 2. Q1 2005 Financial Statements 3. Divisional Information 4. Asset quality 5. Outlook and Targets 6. Appendix Q1 2005 Results Teleconference 6 May 2005 8
Slide 9: Q1 05 Group Income Statement (IFRS)
> Q1 05 Group Income Statement (IFRS) Strong improvement in Austrian retail and growing CE contribution EUR m Q1 2005 Q1 2004 % Change Net interest income 681.2 657.7 3.6 Risk provisions for loans and advances (101.3) (108.2) (6.4) Net commission income 311.1 280.5 10.9 Net trading result 57.2 62.4
Slide 10: Q1 05 EB Group Balance Sheet (IFRS) - Assets
> Q1 05 EB Group Balance Sheet (IFRS) Assets –moderate seasonal growth in customer lending EUR m 31.03.2005 31.12.2004 % Change Cash and balances with central banks 2,505 2,723 (8.0) Loans and advances to credit institutions 19,545 15,684 24.6 Loans and advances to customers 74,585 72,843 2.4 Risk p
Slide 11: Q1 05 EB Group Balance Sheet (IFRS) - Liabilities
> Q1 05 EB Group Balance Sheet (IFRS) Liabilities – tier 1 ratio strengthens to 6.8% EUR m 31.03.2005 31.12.2004 % Change Amounts owed to credit institutions 33,095 28,551 15.9 Amounts owed to customers 69,670 68,213 2.1 Debts evidenced by certificates 20,744 19,710 5.2 Provisions 7,758 7,500 3.4 Ot
Slide 12: Group P&L – Quarterly development of key line items
> Group P&L – Quarterly development of key line items Net Interest Income Net Commission Income 800 677.4 703.0 681.2 350 657.7 660.9 311.1 700 280.5 283.0 285.3 286.5 300 600 250 500 .6% 05 : +3 200 400 – Q1 10.9% Q1 04 Q1 05 : + – 300 150 Q1 04 200 100 100 50 0 0 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q1 0
Slide 13: Presentation Topics
> Presentation Topics 1. Q1 2005 Financial Highlights 2. Q1 2005 Financial Statements 3. Divisional Information 4. Asset quality 5. Outlook and Targets 6. Appendix Q1 2005 Results Teleconference 6 May 2005 13
Slide 14: Q1 2005 Divisional Figures - Overview
> Q1 2005 Divisional Figures - Overview Austria CE Subsidiaries Int. Business Corp. Center TOTAL EB GROUP In EUR m Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Net interest income 384.2 398.3 261.3 226.3 36.1 35.3 (0.5) (2.2) 681.2 657.7 Risk provisions (80.1) (90.4) (13.9) (9.8) (7.6
Slide 15: Q1 2005 Divisional Figures - Austria
> Q1 2005 Divisional Figures - Austria Savings banks Retail & Mortgage Large Corp. Trading & Inv.B. TOTAL AUSTRIA In EUR m Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Net interest income 204.1 210.2 128.4 125.8 35.5 37.2 16.2 25.0 384.2 398.3 Risk provisions (40.5) (48.6) (26.5) (28.
Slide 16: Savings banks
> Savings banks Q1 2005 Highlights » Net Profit contribution declines, but still positive at Segment Savings banks Q1 05 Q1 04 % chg EUR 0.3m Operating Income (EUR m) 294.3 302.2 (2.6%) Operating Expenses (EUR m) (204.2) (205.7) (0.7%) » Decrease in operating income mainly due to 2.9% reduction in N
Slide 17: Retail and Mortgage business
> Retail and Mortgage business Q1 2005 Highlights Segment Retail & M‘ge Q1 05 Q1 04 % chg » Net profit contribution more than doubles to EUR Operating Income (EUR m) 212.0 205.9 3.0% 19.2 m Operating Expenses (EUR m) (156.9) (161.9) (3.0%) » On track to reach 10% ROE target for 2005 Operating Result
Slide 18: Large Corporates
> Large Corporates Q1 2005 Highlights Segment Large Corp Q1 05 Q1 04 % chg » Net profit contribution drops EUR 3.4m in spite of strong commission income performance Operating Income (EUR m) 52.5 52.5 0.0% Operating Expenses (EUR m) (21.3) (19.5) 9.2% » NII decline (-4.6%) partly due to margin pressu
Slide 19: Trading & Investment banking
> Trading & Investment banking Q1 2005 Highlights Segment Trading & IB Q1 05 Q1 04 % chg » Decrease in net profit contribution ( - EUR 2.8m) on Operating Income (EUR m) 62.4 67.8 (7.9%) strong Q1 2004 mainly based by weaker NII Operating Expenses (EUR m) (22.6) (23.6) (4.3%) » NII decrease of 35.4%
Slide 20: Q1 2005 Divisional Figures – Central Europe
> Q1 2005 Divisional Figures – Central Europe CS SLSP EB Hungary Croatia TOTAL CE In EUR m Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Q1 05 Q1 04 Net interest income 141.2 122.2 45.6 45.5 47.1 38.7 27.4 19.8 261.3 226.3 Risk provisions (7.0) (9.4) (0.1) 0.1 (4.7) (5.5) (2.1) 5.0 (13.9) (9.8) Ne
Slide 21: Česká spořitelna
> Česká spořitelna Q1 2005 Highlights Segment contribution Q1 05 Q1 04 % chg » Net profit contribution improved by 51.9% (+39.5%)* supported by strong NII Operating Income (EUR m) 228.6 196.9 16.1% » Strong lending business main driver of NII Operating Expenses (EUR m) (136.3) (118.6) 15.0% improvem
Slide 22: Slovenská sporitel’ňa
> Slovenská sporitel’ňa Q1 2005 Highlights Segment contribution Q1 05 Q1 04 % chg » Net profit contribution nearly doubled supported by operating performance and buyout of minorities Operating Income (EUR m) 68.3 63.6 7.4% » NII flat yoy Operating Expenses (EUR m) (41.7) (38.5) 8.4% » Decline in NIM
Slide 23: Erste Bank Hungary
> Erste Bank Hungary Q1 2005 Highlights Segment contribution Q1 05 Q1 04 % chg » Q1 05 net profit contribution up almost 100% yoy Operating Income (EUR m) 72.3 57.9 24.8% » Despite higher tax rate increase through 8% Operating Expenses (EUR m) (42.4) (41.0) 3.5% corporate tax rate increase for banks
Slide 24: Erste Bank Croatia
> Erste Bank Croatia Q1 2005 Highlights Segment contribution Q1 05 Q1 04 % chg » Net profit contribution down on increased risk costs and higher minorities Operating Income (EUR m) 32.1 27.5 16.6% » Operating result improved by 24.2% Operating Expenses (EUR m) (16.3) (14.8) 10.2% » NII up strongly b
Slide 25: International business and Corporate center
> International business and Corporate center International business – Highlights Corporate Center - Highlights » Net profit contribution increased by 7.0% » Reduced profit elimination led to a decrease in commissions and administration expenses » NII increased by 2.3% despite pressure on margins »
Slide 26: Presentation Topics
> Presentation Topics 1. Q1 2005 Financial Highlights 2. Q1 2005 Financial Statements 3. Divisional Information 4. Asset quality 5. Outlook and Targets 6. Appendix Q1 2005 Results Teleconference 6 May 2005 26
Slide 27: Q1 2005 Asset quality
> Q1 2005 Asset quality Cover ratio continues to improve Mgmt Sub- Non- Risk NPL Low Risk Attention standard Perform. Total Prov‘s Coverage Austria Total 73,707 10,388 2,785 3,416 90,297 2,206 64.6% CE Total 29,743 1,385 337 480 31,945 588 122.5% Int'l Business 17,407 545 69 72 18,094 126 173.4% Cor
Slide 28: Presentation Topics
> Presentation Topics 1. Q1 2005 Financial Highlights 2. Q1 2005 Financial Statements 3. Divisional Information 4. Asset quality 5. Outlook and Targets 6. Appendix Q1 2005 Results Teleconference 6 May 2005 28
Slide 29: Group Outlook and Targets
> Group Outlook and Targets Outlook 2005 » New guidance for Full Year 2005 is for net profit of EUR 660m » Erste Bank Hungary is expected to reach a ROE of at least 20% in 2005 » Replacing previous ROE target of 15% Target 2006 » Erste Bank confirms net profit target EUR 750m in 2006 » Resulting in
Slide 30: Extending the home market?
> Extending the home market? Moving from CE to CEE Priorities » Grow organically in Croatia » Participate in the privatisation of Novosadska banka in Serbia and look for opportunities in Romania » Look at possible smaller acquisitions in Hungary Criteria » Following its successful expansion to date,
Slide 31: Presentation Topics
> Presentation Topics 1. Q1 2005 Financial Highlights 2. Q1 2005 Financial Statements 3. Divisional Information 4. Asset quality 5. Outlook and Targets 6. Appendix Q1 2005 Results Teleconference 6 May 2005 31
Slide 32: Macro overview
> Macro overview GDP Growth (%) 14.0 3 mth interest rates (%) 8.0 7.0 6.4 12.0 11.8 6.7 6.0 5.5 10.0 9.3 5.2 5.0 4.5 4.3 4.2 8.0 4.3 4.0 6.6 4.0 4.1 6.2 6.0 3.7 3.8 7.4 3.8 3.5 6.0 6.5 5.8 3.8 3.8 5.5 4.7 3.0 3.0 5.9 3.0 4.0 3.4 4.0 2.2 2.6 2.0 2.3 2.8 2.8 2.2 2.3 1.9 2.3 2.7 1.0 2.0 2.6 0.8 2.1 2.1
Slide 33: Overview of international exposures
> Overview of international exposures Credit Risk1 by regions at EB Group Low Risk Management Substandard Non performing Total outstanding attention in EUR m Q1 2005 FY 2004 Q1 2005 FY 2004 Q1 2005 FY 2004 Q1 2005 FY 2004 Q1 2005 FY 2004 % of total % of total Core Markets 82,772 79,450 10,939 10,891
Slide 34: Overview of international exposures (cont)
> Overview of international exposures (cont) Credit Risk1 by industry sectors at EB Group Low Risk Management Substandard Non performing Total outstanding attention in EUR m Q1 2005 FY 2004 Q1 2005 FY 2004 Q1 2005 FY 2004 Q1 2005 FY 2004 Q1 2005 FY 2004 % of total % of total Banking & insurance 48,7
Slide 35: Q1 2005 Financials (IFRS) of CE subsidiaries
> Q1 2005 Financials (IFRS) of CE subsidiaries Česká spořitelna Group EUR m Q1 2005 Q1 2004 % Change restated Net interest income 147.0 140.1 4.9 Risk provisions for loans and advances (1.8) (10.2) (82.3) Net commission income 72.6 66.4 9.3 Net trading result 12.9 12.6 2.6 General administrative exp
Slide 36: Q1 2005 Financials (IFRS) of CE subsidiaries (cont)
> Q1 2005 Financials (IFRS) of CE subsidiaries (cont) Slovenská sporiteľňa Group EUR m Q1 2005 Q1 2004 % Change restated Net interest income 49.8 50.6 (1.5) Risk provisions for loans and advances (0.1) 0.1 >100,0 Net commission income 19.2 16.0 20.4 Net trading result 3.5 3.2 8.5 General administrat
Slide 37: Q1 2005 Financials (IFRS) of CE subsidiaries (cont)
> Q1 2005 Financials (IFRS) of CE subsidiaries (cont) Erste Bank Hungary Group EUR m Q1 2005 Q1 2004 % Change restated Net interest income 52.2 46.5 12.3 Risk provisions for loans and advances (7.0) (10.0) (30.1) Net commission income 16.3 12.1 34.6 Net trading result 8.9 8.1 10.3 General administra
Slide 38: Q1 2005 Financials (IFRS) of CE subsidiaries (cont)
> Q1 2005 Financials (IFRS) of CE subsidiaries (cont) Erste Bank Croatia EUR m Q1 2005 Q1 2004 % Change restated Net interest income 28.6 21.7 31.9 Risk provisions for loans and advances (2.1) 5.0 >100,0 Net commission income 4.6 3.3 39.9 Net trading result 0.1 4.5 (97.8) General administrative expe
Slide 39: EB Group Quarterly Results (IFRS)
> EB Group Quarterly Results (IFRS) P&L Details EUR m Q1'02 Q2'02 Q3'02 Q4´02 Q1'03 Q2'03 Q3'03 Q4'03 Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Net interest income 585 634 616 628 618 673 645 652 658 661 677 703 681 Net commission income 244 226 226 249 229 253 246 269 281 283 285 287 311 Net trading result 51
Slide 40: EB Group Quarterly Balance Sheet (IFRS)
> EB Group Quarterly Balance Sheet (IFRS) Balance Sheet Details EUR m Q1'03 Q2'03 Q3'03 Q4'03 Q1'04 Q2'04 Q3'04 Q4´04 Q1'05 Total assets 125,081 129,153 130,481 128,575 136,129 137,517 142,221 139,812 148,202 Loans & advances credit inst. 16,535 18,146 17,851 13,140 18,747 17,846 19,304 15,684 19,54
Slide 41: EB Group Quarterly Divisionals
> EB Group Quarterly Divisionals Overview In EUR m Total Austria Total CE Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1'05 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1'05 Net interest income 405.6 419.0 402.5 398.3 394.6 398.7 416.4 384.2 222.2 202.4 210.9 226.3 231.0 233.9 263.0 261.3 Risk provision
Slide 42: EB Group Quarterly Divisionals - Austria Details
> EB Group Quarterly Divisionals Austria - Details In EUR m Savings Banks Retail & Mortgage Q2 03 Q3 03 Q4 03 Q1 4 Q2 04 Q3 04 Q4 04 Q1 05 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Net interest income 220.5 202.6 215.4 210.2 199.4 208.5 231.5 204.1 130.3 135.5 126.9 125.8 131.1 127.0 132.1 128
Slide 43: EB Group Quarterly Divisionals - Central Europe Details
> EB Group Quarterly Divisionals Central Europe - Details In EUR m Ceska sporitelna Slovenska sporitlena Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Net interest income 116.9 111.6 119.1 122.2 122.5 124.9 140.4 141.2 70.7 57.2 55.4 45.5 47.0 47.8 4
Slide 44: Q1 2005 Results - Key financial data
> Q1 2005 Results Key financial data 1 in EUR m YE 1998 YE 1999 YE 2000 YE 2001 YE 2002 YE 2003YE 2004 Q1 2005 Tier 1 Capital pursuant to § Austrian Banking Act 1,611 1,753 2,125 2,337 3,800 3,912 4,377 4,487 Total own funds pursuant to 2 3,956 4,308 6,983 7,009 7,286 7,082 § Austrian Banking Act 3,
Slide 45: Current shareholder structure
> Current shareholder structure Total numbers of shares: 241,442,892 By Investor Type By Region Austria Verein Others 6.0% Continental Europe 0.9% 32.5% 5.8% UK & Ireland 17.4% Employees 1.9% Savings banks North America Institutional investors 7.0% Austria Private 17.7% 45.6% 58.2% investors 7.0% Fr
Slide 46: Investor relations contacts
> Investor relations contacts Erste Bank, Graben 21, 1010 Vienna Fax +43 (0)5 0100-13112 E-mail: investor.relations@erstebank.at Internet: www.erstebank.com Reuters: ERST.VI Bloomberg: EBS AV Datastream: O:ERS Securities ID: 065201 Investor relations Gabriele Werzer Tel: +43 (0)5 0100-11286 E-Mail: