Slide 1: FY 2011 preliminary results presentation
Erste Group – FY 2011 preliminary results presentation 29 February 2012 Erste Group returns to profitability in Q4 11; timely compliance with EBA capital requirement 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: FY 2011 executive summary
FY 2011 executive summary – Strong Q4 11 net profit reduces FY 2011 net loss − Solid quarterly result of EUR 254.1m in Q4 11 on profitable core business in Austria, Czech Republic, Slovakia & Croatia − FY 2011 net loss of EUR 718.9m a result of one-off items: − Revaluation of written CDS held by Int
Slide 4: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure Note: FY 2010 figures restated for comparison purposes (IAS 8). For
Slide 5: Operating environment: macro trends
Operating environment: macro trends – CEE grew faster than euro zone in 2011 − Different growth patterns in line with levels of Real GDP growth in CEE export dependency and country-specific issues 8 2012 euro zone avg. 0.2% − AT: expected to outgrow euro zone for eleventh 6 4.2 3.1 3.0 2.6 consecuti
Slide 6: Key financial indicators
Key financial indicators – Key indicators impacted by one-off items in FY 2011 YTD cost income ratio YTD net interest margin 59.2% 57.2% 3.04% 3.08% 2.97% 50.2% 50.2% 51.5% 2.84% 2.49% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 As of 2011 changed NIM calculation: net interest income includes
Slide 7: Income statement (IFRS) – FY 2011
Income statement (IFRS) – FY 2011 performance affected by one-off items in Q3 in EUR million 2011 2010 Change Comment Net interest income 5,569.0 5,439.2 2.4% Solid performance of core business Risk provisions for loans (2,266.9) (2,021.0) 12.2% Up in HU, down or flat all other segments Net fee and
Slide 8: Income statement (IFRS) – Quarterly
Income statement (IFRS) – Solid quarterly performance in EUR million Q4 11 Q3 11 Change Comment Net interest income 1,434.9 1,430.2 0.3% Shifiting of NII on trading assets Risk provisions for loans (407.7) (938.4) (56.6%) Q3 11 impacted by HU one-off Net fee and commission income 435.2 445.9 (2.4%)
Slide 9: Balance sheet (IFRS) – Assets
Balance sheet (IFRS) – Successful RWA reduction in non-core business in EUR million Dec 11 Dec 10 Change Comment Cash and balances with central banks 9,413 5,839 61.2% Temporary additional liquidity from LTRO Loans and advances to credit institutions 7,578 12,496 (39.4%) Reduced non-core business Lo
Slide 10: Balance sheet (IFRS) – Loan-to-deposit ratio
Balance sheet (IFRS) – Loan-to-deposit ratio of 113.3% at end of the year 2011 in EUR million Dec 11 Dec 10 Change Comment Deposits by banks 23,785 20,154 18.0% LTRO Customer deposits 118,880 117,016 1.6% Growth in AT & RO, decline in HU Debt securities in issue 30,782 31,298 (1.6%) Derivative finan
Slide 11: Segment highlights
Segment highlights – CZ, AT, SK & HR doing well, RO and HU underperform Top segment performers in 2011: Czech Republic Slovakia EBOe in EUR million 2011 2010 Change 2011 2010 Change 2011 2010 Change Operating income 1,634 1,626 0.5% 553 537 2.9% 1,007 1,001 0.6% Operating expenses (714) (710) 0.6% (
Slide 12: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 12
Slide 13: Hungary update – FX conversion status quo
Hungary update – FX conversion status quo Enacted government repayment Proposal for performing clients Proposal for NPL clients scheme (Subject to parliamentary approval) (Subject to parliamentary approval) ~20% of clients ~65% of clients ~15% of clients 25% write-off on all eligible NPL (90+ as 30%
Slide 14: Hungary update – Operating in a challenging environment
Hungary update – Operating in a challenging environment − Still fragile economic outlook with growth lagging behind CEE peers − All three major rating agencies downgraded Hungary to non-investment grade − The government has started negotiations with IMF to secure financial assistance program − Agree
Slide 15: Romania update – GDP growth
Romania update – GDP growth surprised on the upside in 2011 − Real GDP up 2.5% yoy supported by Unemployment, inflation and wage growth agriculture, industry and exports 20% 16.9% − Additionally construction contributed to growth, private 15% consumption to recover further in 2012 − Economic sentime
Slide 16: Romania update – Banca Comerciala Romana
Romania update – Banca Comerciala Romana − SIF transaction update − 4 SIFs signed binding agreements to sell their combined stake of 24.0%* in BCR to Erste Group − By the end of February 2012 22.9%* of outstanding SIF´s BCR shares were acquired by Erste Group, against: − Swapping 16,102,263 Erste Gr
Slide 17: Presentation topics
Presentation topics − Business performance − Segment highlights − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 17
Slide 18: Loan book review
Loan book review – Loan demand started to recover in corporate business − Customer loans increased by 1.8% yoy Customer loans by main segments * − Notable growth of retail portfolio in Slovakia and retail 150 132.7 132.8 134.1 135.2 134.7 and corporate business in Austria 18.7 18.9 18.7 19.3 19.8 12
Slide 19: Asset quality review – Group trends
Asset quality review – Group trends: NPL formation up on RO and HU in 2011 − New NPL formation declined yoy Erste Group: NPL ratio vs NPL coverage − New formation mainly in Hungary (deterioration of 63.9% corporate and real estate portfolio) and Romania (weak 30% 65% SME business) 25% 61.4% 60.6% 61
Slide 20: Asset quality review – Segment round-up
Asset quality review – Segment round-up: Austria excelled, CEE still mixed − Retail & SME/Austria: NPL ratio stable NPL ratios in key segments − Slight reduction of NPLs in savings banks − Further reduction of CHF loans due to conversion 25% 22.7% into EUR loans 21.1% 20% − Retail & SME/CEE: Hungary
Slide 21: Asset quality review – Risk costs
Asset quality review – Risk costs increased on one-offs in Hungary − GCIB: demand is growing in GLC business Risk costs in key segments − Increase of loan volume due to increased demand in 10% Austrian large corporate business − Improved asset quality led to releases in Q4 11 8% 5.97% 6% 4.27% − Nor
Slide 22: Drill-down on selected asset classes
Drill-down on selected asset classes – Strong reduction in European peripheral exposure − EUR 400m of Italian sovereign bonds matured in Jan 2012 − No meaningful sovereign exposure to peripheral Europe Total net exposure of Erste Group (incl. savings banks) to selected European countries: in EUR mil
Slide 23: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 23
Slide 24: Funding update – Customer deposits
Funding update – Continued deposits growth year-on-year since 1999 − Customer deposits grew by 1.6% in 2011 − In 2011 most visible inflow in EBOe Customer deposit trends by main segments − Negative FX effect amounted to EUR 1bn in 2011 117.0 119.2 120.8 121.6 118.9 125 6.1 6.3 5.4 5.5 5.5 − Retail &
Slide 25: Funding update – Funding mix
Funding update – Retail deposits remained a key pillar in the funding mix − Customer deposits are primary source of funding − Providing a solid funding base in all local currencies Evolution of Erste Group's funding mix − LTRO take up of EUR 3bn in Dec 2011 − Rationale was to replace short term with
Slide 26: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 26
Slide 27: Capital position
Capital position – On track for timely EBA compliance − EBA core tier 1 ratio at 31 Dec 11: 8.9% Core tier 1 ratio − EBA capital gap narrowed to about EUR (total risk) 9.2% 9.4% 166 million, down from EUR 743 million 8.3% − Supported by solid earnings in Q4 11 and… − …RWA decrease of EUR 5.8bn on re
Slide 28: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 28
Slide 29: Conclusion – Outlook
Conclusion – Outlook − Despite subdued growth outlook for CEE, underlying macroeconomic data in core markets points towards stronger GDP growth than in most other EU countries − Austria, Czech Republic and Slovakia are well positioned to weather a potential recession in EU − Romania is staying the c
Slide 30: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 30
Slide 31: Segment review
Segment review – Core segments affected by extraordinary items in 2011 Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 Net interest income 4,716.3 4,623.9 543.2 574.2 197.4 156.4 112.1 84.7 5,569.0 5,439.2 Risk provisions
Slide 32: Core segment – Austria
Core segment – Austria EBOe: long term profit growth intact Savings banks EB Oesterreich Austria in EUR million 2011 2010 2011 2010 2011 2010 Net interest income 1,015.6 960.6 665.9 655.3 1,681.5 1,615.9 Risk provisions for loans and advances (250.4) (303.3) (101.4) (148.3) (351.8) (451.6) Net fee a
Slide 33: Core segment Central and Eastern Europe (1)
Core segment Central and Eastern Europe (1) – Diverging trends in operating performance … Czech Republic Romania Slovakia Hungary in EUR million 2011 2010 2011 2010 2011 2010 2011 2010 Net interest income 1,183.3 1,087.2 672.3 798.6 445.7 426.8 402.7 387.1 Risk provisions for loans and advances (210
Slide 34: Core segment Central and Eastern Europe (2)
Core segment Central and Eastern Europe (2) – … and risk cost levels across the region in 2011 Croatia Serbia Ukraine CEE in EUR million 2011 2010 2011 2010 2011 2010 2011 2010 Net interest income 261.8 247.9 36.4 27.5 32.6 32.9 3,034.8 3,008.0 Risk provisions for loans and advances (109.3) (106.0)
Slide 35: Segment Retail & SME
Segment Retail & SME – Positive performance in core business hurt by HU & RO − Operating result was down slightly on flat income and in EUR million 2011 2010 Change minor increase in operating expenses Net interest income 4,716.3 4,623.9 2.0% − Operating income flat for the year − Margins in core bu
Slide 36: 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 113.3 113.3 114.8 115.2 114.4 120 100% 2.2% 2.0% 2.0% 2.2% 2.2% 6.4 6.6 6.7 6.3 6.7 15.1% 14.3% 14.9% 14.4% 13.7% 80% 90 in EUR billion 43.3
Slide 37: Segment GCIB excl IB
Segment GCIB excl IB – Relatively stable result in core GCIB segment − Operating result slightly declined on increased costs in EUR million 2011 2010 Change − Operating income was slightly up on improvement in fee business Net interest income 433.5 429.8 0.9% − NII was up on portfolio shift from Lon
Slide 38: International Business (GCIB)
International Business (GCIB) – Restructuring of non-core business ongoing − Operating result turned more negative due to losses 2011 2010 Change in EUR million on CDS written mainly in Q3 2011 − Operating income was negative as a result of trading loss in Net interest income 109.7 144.3 (24.0%) Q3
Slide 39: 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% 3.9% 1.3% 3.7% 1.2% 3.7% 1.2% 3.5% 1.2% 4.5% 1.7% 4.9% 5.5% 5.7% 5.7% 5.7% 11.5% 10.2% 10.1% 9.9% 9.3% 80% 19.8 in EUR billion 18.7 18.9 18.7 19.3 20 1.0 1.2
Slide 40: Segment Group Markets
Segment Group Markets – Difficult market environment led to declining result − Operating result decreased on lower net trading result in EUR million 2011 2010 Change − NII increased on shifting of interest income on trading securities in Q4 11, otherwise was relatively stable yoy Net interest income
Slide 41: Segment Corporate Center
Segment Corporate Center – Impairment of goodwill drove result − What is in the Corporate Center? − Business areas which cannot be allocated to relevant business in EUR million 2011 2010 Change lines, one-offs, amortisation of customer relationships and Net interest income 112.1 84.7 32.4% Group ALM
Slide 42: Retail & SME: Austria/EB Oesterreich
Retail & SME: Austria/EB Oesterreich – Positive long term trend continued in 2011 − Operating result slightly increased in 2011 − NII improved on increased deposit volume and fractionally in EUR million 2011 2010 Change higher margins Net interest income 665.9 655.3 1.6% − Customer deposits increase
Slide 43: 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 27.4 27.1 27.5 28.0 28.2 100% 2.0% 1.8% 1.7% 2.0% 1.9% 1.7 1.8 16.0% 15.4% 16.0% 15.4% 14.4% 1.7 1.7 1.7 80% in EUR bi
Slide 44: Retail & SME: Austria/Savings banks
Retail & SME: Austria/Savings banks – Solid performance impaired by weak trading & other result − Operating result increased yoy and qoq − NII up on slightly improved margins and volumes in EUR million 2011 2010 Change − Net fee income slightly decreased yoy mainly on declining Net interest income 1
Slide 45: Savings banks – Loan book analysis
Retail & SME: Austria/Savings banks – Loan book analysis Segment Savings Banks - Customer loans by Basel II customer segment Segment Savings banks - Customer loans by currency 40 37.3 37.0 37.7 37.7 37.6 1.6 1.7 1.6 1.6 1.6 100% 3.3% 3.2% 3.2% 3.5% 3.4% 20.2% 19.2% 20.1% 19.6% 18.9% 30 80% in EUR bi
Slide 46: Retail & SME: Czech Republic
Retail & SME: Czech Republic – Record performance in 2011 − Operating result increased on higher NII and despite weak trading result in 2011 in EUR million 2011 2010 Change − NII up on improved asset mix and higher income from financial Net interest income 1,183.3 1,087.2 8.8% assets Net fee income
Slide 47: Czech Republic – Loan book analysis
Retail & SME: Czech Republic – Loan book analysis Segment Czech Republic - Segment Czech Republic - Customer loans by Basel II customer segment Customer loans by currency 20 17.5 18.0 18.1 17.9 17.2 100% 0.2% 3.9% 0.2% 3.3% 0.2% 3.3% 0.3% 3.4% 0.3% 3.7% 0.7 0.8 0.8 0.6 0.7 16 80% in EUR billion 5.3
Slide 48: Retail & SME: Romania
Retail & SME: Romania – Still waiting for growth − Operating result decreased on lower NII in 2011 − Lower margins, decreasing unsecured loan demand, and in EUR million 2011 2010 Change lower leasing business all led to declining NII; deposits Net interest income 672.3 798.6 (15.8%) contribution imp
Slide 49: Romania – Loan book analysis
Retail & SME: Romania – Loan book analysis Segment Romania - Segment Romania - Customer loans by currency Customer loans by Basel II customer segment 15 100% 1.6% 1.4% 1.3% 1.7% 1.7% 12 11.2 11.3 11.1 11.0 11.2 80% in EUR billion 1.5 1.5 1.5 1.1 1.3 60.6% 60.1% 60.4% 59.9% 60.6% 9 60% 4.2 4.4 4.3 4.
Slide 50: Retail & SME: Slovakia
Retail & SME: Slovakia – Continued good result on record NII & reduced risk − Strong NII and fee income drove operating result − NII continued to grow on the back of growing retail housing in EUR million 2011 2010 Change business and increased interest on financial assets Net interest income 445.7 4
Slide 51: Slovakia – Loan book analysis
Retail & SME: Slovakia – Loan book analysis Segment Slovakia - Segment Slovakia - Customer loans by Basel II customer segment Customer loans by currency 8 100% 0.4% 0.4% 0.4% 0.4% 0.3% 5.9 6.0 6.2 5.7 5.8 0.2 6 0.1 80% in EUR billion 0.1 0.1 0.1 1.4 1.4 1.3 1.4 1.4 0.3 0.3 0.3 60% 4 0.3 0.3 99.6% 99
Slide 52: Retail & SME: Hungary
Retail & SME: Hungary – Strategic repositioning of Erste Bank Hungary − Operating result increased slightly on increased NII − NII rose due to unwinding effects (leading to increase in risk in EUR million 2011 2010 Change provisions) and FX effects Net interest income 402.7 387.1 4.0% − Fee income w
Slide 53: Hungary – Loan book analysis
Retail & SME: Hungary – Loan book analysis Segment Hungary - Segment Hungary - Customer loans by currency Customer loans by Basel II customer segment 10 100% 0.2% 0.3% 0.1% 0.1% 0.2% 7.9 20.8% 20.7% 19.7% 20.5% 22.0% 7.8 7.6 7.7 8 0.4 0.4 0.4 0.4 7.1 80% in EUR billion 0.4 2.3 2.3 2.3 2.3 6 2.1 60%
Slide 54: Retail & SME: Croatia
Retail & SME: Croatia – Solid operating result and contained risk costs − Operating result improved on higher NII, increased net fee income and net trading result in 2011 in EUR million 2011 2010 Change − NII improved on better margins and increased volume in both Net interest income 261.8 247.9 5.6
Slide 55: Croatia – Loan book analysis
Retail & SME: Croatia – Loan book analysis Segment Croatia - Segment Croatia - Customer loans by currency Customer loans by Basel II customer segment 5.8 5.8 5.9 6 5.5 5.6 100% 0.2% 0.2% 0.2% 0.3% 0.3% 0.5 0.6 0.7 15.4% 14.1% 14.2% 13.6% 13.0% 0.4 0.5 80% in EUR billion 4 2.4 2.4 2.5 2.4 2.5 60% 63.
Slide 56: Retail & SME: Serbia
Retail & SME: Serbia – Operating performance improved throughout the year − Operating result up on higher NII and slightly increased net fee income in 2011 in EUR million 2011 2010 Change − NII up due to significantly increased loan volume as well as Net interest income 36.4 27.5 32.3% margin expans
Slide 57: Serbia – Loan book analysis
Retail & SME: Serbia – Loan book analysis Segment Serbia - Segment Serbia - Customer loans by currency Customer loans by Basel II customer segment 600 100% 1.1% 4.4% 1.0% 4.1% 0.9% 4.1% 0.9% 3.9% 0.9% 3.8% 461.7 480.3 485.6 431.3 436.0 2.2 2.5 2.8 80% in EUR million 2.3 2.2 400 274.9 286.5 60% 67.3%
Slide 58: Retail & SME: Ukraine
Retail & SME: Ukraine – Rightsizing still ongoing − Operating result down on portfolio reduction in 2011 in EUR million 2011 2010 Change − NII flat yoy and up for the quarter on reallocation of interest on Net interest income 32.6 32.9 (0.8%) trading securities, otherwise down due to reduced loan po
Slide 59: Ukraine – Loan book analysis
Retail & SME: Ukraine – Loan book analysis Segment Ukraine - Segment Ukraine - Customer loans by currency Customer loans by Basel II customer segment 800 100% 1.3% 1.4% 1.3% 1.2% 1.5% 600 80% in EUR million 486.3 479.0 496.7 0.0 443.7 441.1 0.0 3.2 50.3 71.8 0.0 51.0 60% 80.2% 80.2% 75.6% 0.0 85.2%
Slide 60: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 60
Slide 61: 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 62: Asset quality analysis – Loan book overview
Asset quality analysis – Loan book overview Customer loans by Basel II customer segments Customer loans by industries 150 132.7 132.8 134.1 135.2 134.7 5.7% 3.1% 4.0% 7.6 7.7 7.8 7.6 8.2 120 2.8% in EUR billion 60.6 61.0 62.4 62.1 5.3% 38.6% 61.0 90 5.0% 60 13.5 13.4 13.4 13.4 13.2 30 51.9 51.9 4.9%
Slide 63: 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 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Retail & SME 80,952 81,200 19,513 1
Slide 64: Asset quality analysis – Loan book by region
Asset quality analysis – Loan book by region (country of origination) Low risk Mgmt attention Substandard Non-performing Total loan book in EUR million Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Share of total Share of total Core market 89,007 86,949 21,768 20,782 4,078 5,
Slide 65: 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 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Share of total Share of total Agriculture and forestry 1,278 970 503 626 57 138 239 211 2,076
Slide 66: Asset quality analysis – Total exposure by region
Asset quality analysis – Total exposure by region (country of origination) * Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Dec 11 Dec 10 Share of total Share of total Core market 142,947 140,047 25,055 24,186
Slide 67: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (31 Dec 2011: EUR 37.6 bn) (31 Dec 2011: EUR 37.6 bn) 2.6% 15.8% 5.6% 3.2% 25.4% 4.5% 2.4% 4.0% 8.3% 20.3% 4.7% 62.4% 21.1% 10.1% 5.8% 3.9% AT CZ SK US DE HU RO IT GB Other EUR CZK USD H
Slide 68: Balance sheet drill-down – Trading assets
Balance sheet (IFRS) drill-down – Trading assets as at 31 Dec 2011 − YTD rise in trading assets mainly due to short term T-bill investments in EUR m Sovereign Banks Other Total Trading CZ 1,503 31.7% 5 1.0% 18 3.1% 1,527 26.0% SK 533 11.3% 0 0.0% 0 0.0% 533 9.1% RO 534 11.3% 2 0.3% 1 0.2% 537 9.1% H
Slide 69: Balance sheet drill-down – Financial assets at fair value
Balance sheet (IFRS) drill-down – Financial assets at fair value as at 31 Dec 2011 − Decline due to the reduction in non-core assets in EUR m Sovereign Banks Other Total FV CZ 113 12.3% 161 32.3% 17 4.4% 292 16.1% SK 45 4.9% 1 0.2% 8 2.0% 54 3.0% RO 6 0.6% 0 0.0% 2 0.6% 8 0.4% HU 178 19.3% 0 0.0% 0
Slide 70: Balance sheet drill-down – Available for sale
Balance sheet (IFRS) drill-down – Financial assets available for sale as at 31 Dec 2011 − Investment of surplus liquidity mainly in Austria, Slovakia, Czech Republic, Germany and Romania; and preparation for Basel 3 liquidity requirements in EUR m Sovereign Banks Other Total AfS CZ 996 9.9% 173 3.3%
Slide 71: Balance sheet drill-down – Held-to-maturity
Balance sheet (IFRS) drill-down – Financial assets held-to-maturity as at 31 Dec 2011 − Investment of surplus liquidity mainly in Austria, Slovakia, Czech Republic, Germany and Romania; and preparation for Basel 3 liquidity requirements in EUR m Sovereign Banks Other Total HTM CZ 6,071 47.7% 275 12.
Slide 72: Off-balance sheet items
Off-balance sheet items – Exclusively related to customer business in EUR million 2011 2010 Guarantees and warranties 6.920 7.826 of which: in relation to corporate business 6.170 Undrawn lines, loan commitments, promissory nots 18.579 19.446 of which: in relation to corporate business 9.762 of whic
Slide 73: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 73
Slide 74: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 2011 2010 Rate and margin environment Cost/income ratio 41.8% 41.1% Return on equity 18.2% 18.2% 80% 71.9% 8% 68.6% 66.5% 67.3% 67.3% Dec 11 Dec 10 Change Erste Group stake 97.99% Solvency ratio 13.1% 13.9% 60% 6% 3
Slide 75: Key local entity data – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 2011 2010 Rate and margin environment Cost/income ratio 41.0% 36.9% Return on equity 1.0% 6.7% 150% 138.1% 137.4% 134.1% 135.5% 134.6% 15% Dec 11 Dec 10 Change Erste Group stake 89.12% 12% Solvency ratio 12.7% 13.0% 100% 6.7% 9%
Slide 76: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 2011 2010 Rate and margin environment Cost/income ratio 39.6% 40.5% Return on equity 20.0% 17.7% 100% 8% Dec 11 Dec 10 Change 83.4% 74.5% 75.5% 77.3% 77.9% Erste Group stake 100.0% 100.0% 80% Solvency ratio 15.0
Slide 77: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 2011 2010 Rate and margin environment Cost/income ratio 37.4% 39.4% Return on equity n.a. 0.1% 270% 12% Dec 11 Dec 10 Change 203.1% 191.8% 10% Erste Group stake 99.94% 184.4% 177.6% 177.5% Solvency ratio 17.2% 12.
Slide 78: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 2011 2010 Rate and margin environment Cost/income ratio 38.6% 38.1% 148% 150% 145% Return on equity 11.6% 11.1% 150% 131% 6% Dec 11 Dec 10 Change 123% Erste Group stake 69.25% 120% 4.1% 4.1% 3.7% 3.8% 3.9% Solvenc
Slide 79: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 2011 2010 Rate and margin environment Cost/income ratio 64.8% 71.9% Return on equity 6.8% 2.9% 120% 103.8% 20% Dec 11 Dec 10 Change 99.2% 96.7% 100.4% 94.8% Erste Group stake 80.49% 100% Solvency ratio 25.6% 17.5%
Slide 80: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 2011 2010 Rate and margin environment Cost/income ratio 101.7% 73.2% Return on equity 0.0% na 500% 25% Dec 11 Dec 10 Change 20.3% Erste Group stake 100.0% 400% 358% 20% 324% Solvency ratio 22.0% 24.7% 262% 300% 26
Slide 81: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 81
Slide 82: 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 83: Strategy – Customer banking in the eastern part of the EU
Strategy – Customer banking in the eastern part of the EU Erste Group Slovakia Czech Republic Clients: 2.4m The leading retail bank with 16.9 m customers Clients: 5.2m Retail loans: 25.8% One of the leading corporate banks Retail loans: 24.7% Retail dep.: 26.1% Retail dep.: 28.6% Branches: 292 Stron
Slide 84: Erste Group historic financials – Quarterly income statement
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Net interest income 1,380.0 1,330.3 1,368.0 1,397.5 1,343.4 1,302.0 1,401.9 1,430.2 1,434.9 Net fee and commission income 459.5 448.1 469.5 452.4 472.5 455.2 450.9
Slide 85: Erste Group historic financials – Quarterly balance sheet
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Cash and balances with central banks 5,996 5,965 6,540 5,030 5,839 5,043 6,605 5,743 9,413 Loans and advances to credit institutions 13,140 16,123 16,408 14,
Slide 86: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME Group Corporate & Investment Banking Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Net interest income 1,141.5 1,135.9 1,190.8 1,212.6 1,177.1 128.7 127.7 134.0 132.2 149.2 Risk provisions (454.3) (404.
Slide 87: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Net interest income 165.3 152.9 168.6 180.3 164.1 233.7 234.1 258.0 249.8 273.6 Risk provisions (24.1) (35.0) (30.2) (27.6) (8.7) (93.7)
Slide 88: Quarterly segment reporting – CEE sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) in EUR million Czech Republic Romania Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Net interest income 276.4 284.4 305.6 310.3 283.0 176.8 186.0 168.9 162.7 154.7 Risk provisions (81.8) (70.9) (68.5) (49.2) (21.
Slide 89: Quarterly segment reporting – CEE sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Net interest income 65.1 61.3 66.6 66.8 67.0 7.5 8.6 9.6 8.9 9.3 Risk provisions (27.1) (23.2) (27.2) (22.0) (37.0) (1.6) (2.0) (2.5) (1
Slide 90: Group statistical data
Group statistical data – Expansion slowed, but long term growth trend intact in EUR million 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 * 2011 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 12,219 11,909 T
Slide 91: Presentation topics
Presentation topics − Business performance − Update on Hungary & Romania − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2011 preliminary results 29 February 2012 presentation 91
Slide 92: Shareholder structure
Shareholder structure – Total number of shares: 394,568,647 By investor By region CaixaBank Other 9.7% Erste 2.7% Stiftung Continental 24.8% Europe 24.7% Austria 47.3% Savings banks 4.1% UK & Ireland Employees 5.6% 2.1% Institutional Retail Investors Investors 54.2% 5.2% North America 19.7% Free flo
Slide 93: 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 Thomas Sommerauer Tel: +43 (0)5 0100 1