Erste Group Bank Ag · VIE:EBS
Erste Group Bank — H1 2024 Earnings Presentation
18 slides from Erste Group Bank's earnings presentation, Aug 2, 2024
Slide 1: Half-year results 2024
PRESS CONFERENCE, 2 AUGUST 2024 Half-year results 2024 Peter Bosek, Chief Executive Officer Stefan Dörfler, Chief Financial Officer Alexandra Habeler-Drabek, Chief Risk Officer Ingo Bleier, Chief Corporates & Markets Officer
Slide 2: GDP forecast for 2024: CEE on course for growth again
ECONOMIC ENVIRONMENT GDP forecast for 2024: CEE on course for growth again +1.0% +2.2% +0.2% +2.0% +2.6% +3.4% eurozone +0.7% +3.8% Erste region Ø +1.6% Sources: Erste Group Research; European Commission 2
Slide 3: GDP forecast for 2025: Growth should accelerate
ECONOMIC ENVIRONMENT GDP forecast for 2025: Growth should accelerate +3.0% +2.5% +1.5% +3.5% +3.4% +2.8% eurozone +1.1% +4.0% Erste region Ø +2.7% Sources: Erste Group Research; European Commission 3
Slide 4: Inflation: Significant slowdown in momentum
ECONOMIC ENVIRONMENT Inflation: Significant slowdown in momentum IN % eurozone Ø 2023 2024e 2025e 2023: 5.5% 2024e: 2.4% 17.6 2025e: 2.1% 12.1 10.7 10.5 10.5 8.1 7.7 5.2 4.4 4.0 4.0 3.7 3.4 3.3 3.1 2.7 2.6 2.8 3.0 2.5 2.5 AT CZ SK HU RO HR RS Sources: Erste Group Research; European Commission 4
Slide 5: Key interest rates: rate cuts in CEE earlier than eurozone
ECONOMIC ENVIRONMENT Key interest rates: rate cuts in CEE earlier than eurozone IN % CZ HU RO RS eurozone 14 12 10 8 6 4 2 0 23 23 24 24 1. 7. 1. 7. 1. 1. 1. 1. Sources: Erste Group Research; European Commission 5
Slide 6: Labour markets continue to prove robust
ECONOMIC ENVIRONMENT Labour markets continue to prove robust UNEMPLOYMENT RATE, IN % eurozone Ø 2023 2024e 2025e 2023: 6.5% 2024e: 6.5% 2025e: 6.5% 9.5 8.9 8.6 6.1 5.8 5.7 5.6 5.6 5.6 5.5 5.1 5.2 5.1 5.3 5.2 4.5 4.1 3.9 3.5 2.9 2.6 AT CZ SK HU RO HR RS Sources: Erste Group Research; European Commiss
Slide 7: Risk costs remain low
Risk costs remain low Risk costs Crisis-induced performing risk provisions In basis points of gross customer loans In EUR mn Macro Covid Ukraine/geopolitical situation 78 928 773 734 740 670 15 12 9 117 6 2 2019 2020 2021 2022 2023 H1 2024 2019 2020 2021 2022 2023 H1 2024 7
Slide 8: NPL ratio stays at a low level
NPL ratio stays at a low level NPL ratio NPL coverage ratio In % In % 2.4 85.1 2.3 80.6 Dec 2023 Jun 2024 Dec 2023 Jun 2024 8
Slide 9: Operating income increases across all segments
Operating income increases across all segments IN EUR MN Net interest income Net fee and commission income +7.0% Net trading result and gains/losses from financial instruments at FVPL 5,522 Other operating income 5,161 3,688 3,561 1,423 1,275 207 248 118 163 H1 2023 H1 2024 9
Slide 10: Slight increase in operating expenses
Slight increase in operating expenses IN EUR MN Personnel expenses Other administrative expenses +3.1% Depreciation and amortisation 2,548 2,472 1,459 1,534 738 745 275 270 H1 2023 H1 2024 10
Slide 11: Loans and deposits increase slightly
Loans and deposits increase slightly Loans Deposits Loan-to-deposit ratio Net loans & advances to customers, in EUR bn in % in EUR bn +3.2% 240.2 89.3 87.9 +1.7% 232.8 207.8 211.3 Dec 23 Jun 24 Dec 23 Jun 24 Dec 23 Jun 24 11
Slide 12: Net result rises on back of increased operating income
Net result rises on back of increased operating income IN EUR MN +9.4% 76 155 360 1,629 10 1,490 H1 2023 Operating Operating Risk costs Taxes and H1 2024 income expenses Other result 12
Slide 13: Strong capitalization provides basis for financing economies
Strong capitalization provides basis for financing economies CET1 RATIO, IN % (CRR, FINAL) 15.7 15.5 8.3 Dec 09 Dec 23 Jun 24 13
Slide 14: Corporates and Markets: subdued loan growth
Corporates and Markets: subdued loan growth Corporate loans New sustainable loans Net loan stock, Volume of new business, in EUR bn in EUR bn +3.5% 77.9 76.8 75.3 2.1 1.0 Jun 23 Dec 23 Jun 24 H1 2023 H1 2024 14
Slide 15: Group markets and Asset Management
Group markets and Asset Management Co-arranged Issuances Assets under Management Issuance volume, in EUR bn in EUR bn of which sustainable funds +10.4% 94.1 91.9 82.2 78.2 74.5 H1/2024 performance in the capital market segment almost at level of same period in 2023 +40% 130 capital market mandates i
Slide 16: Retail segment: Growth in securities savings plans
Retail segment: Growth in securities savings plans Securities savings plans Housing loans New housing loans Stock, Stock volume, Volume of new business in the quarter, in quantities in EUR bn in EUR bn +23% 1,302,000 73.2 72.9 73.1 4.1 1,165,000 3.7 1,060,000 Jun 23 Dec 23 Jun 24 Jun23 Dec 23 Jun 24
Slide 17: George with over 10 mn customers in 6 countries
George with over 10 mn customers in 6 countries Every second product sale is already concluded digitally 17
Slide 18: Outlook
Outlook ECONOMY ESG Good prospects for growth in CEE Expanding sustainable financing DIGITALIZATION GROWTH Super human, super digital Further expansion in CEE possible 18