Erste Group Bank Ag · VIE:EBS
Erste Group Bank — H1 2020 Earnings Presentation
68 slides from Erste Group Bank's earnings presentation, Jul 31, 2020
Slide 1: Erste Group investor presentation H1 2020 results
Erste Group investor presentation H1 2020 results 31 July 2020 Moving ahead of the curve – Forward-looking provisioning, strong capital position, continued dividend accrual Bernd Spalt, CEO Erste Group Stefan Dörfler, CFO Erste Group Alexandra Habeler-Drabek, CRO Erste Group Page
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: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q2 20 presentation • Executive summa
Slide 4: CEE Covid-19 evolution update
CEE Covid-19 evolution update – In terms of virus spread CEE is still among the least affected regions • Overall virus spread remains at low levels following highly effective policy responses • Only RO and RS experience larger – but in a global context manageable – waves of infections than in spring
Slide 5: Macroeconomic update (1)
Macroeconomic update (1) – CEE tackles Covid-19 challenge from a position of strength Economy Banking markets Subsidiary banks • Strong labour markets • Deposit overhang & excess liquidity on • Fully self-funded business model as • Unemployment rates at historic lows in system level in all key marke
Slide 6: Macroeconomic update (2)
Macroeconomic update (2) – Extended, wave-shaped economic recovery is most likely scenario • Real GDP to decline 4%-9% in 2020 in Erste Group’s core Most likely economic recovery scenario markets following severe lockdowns across CEE • Q2 20 expected to be hit the hardest; recovery to start already
Slide 7: Business update (1) – Retail – what's happening on the ground?
Business update (1) – Retail – what‘s happening on the ground? • Diverging demand trends emerging in Q2 20 Monthly new sales volumes • Continued strong demand for housing loans (2019 vs 2020, in EUR million) • Lower demand for consumer loans, but recovering as of late, even with Housing loans Consum
Slide 8: Business update (2) – Corporates – what's happening on the ground?
Business update (2) – Corporates – what‘s happening on the ground? • Clients cope with the new realities Corporate loan stock development • Loan demand is still intact, albeit slowing in Q2 (gross, business line view, in EUR bn) • Volumes supported by guaranteed business as well as moratoria • Clien
Slide 9: Understanding operating trends (1)
Understanding operating trends (1) – Moratoria and guarantees supported volumes, real business growth declined • Qoq net loan growth amounted to 1.6%, supported by: Composition of net loan growth in Q2 20 • Limited use of state-guaranteed loans of approx. EUR 0.6bn (in EUR bn) • Reduced redemptions
Slide 10: Understanding operating trends (2)
Understanding operating trends (2) – Core revenues held up well in Q2 20, while costs declined • NII held up well in Q2 20, despite Covid-19 lockdowns • NII continues to get accrued for moratoria loans, only PV- negative NII development modification losses lead to negative impact on NII (approx. EUR
Slide 11: Credit risk – Risk provisions: moving ahead of the curve
Credit risk – Risk provisions: moving ahead of the curve • Total risk provisions of EUR 613.7m or 148bps in Q2 20 Risk cost development in 2020e • Update of forward-looking information (FLI) in relation to (baseline scenario, in bps of average gross customer loans) deteriorated macroeconomic forecas
Slide 12: Credit risk – Strong asset quality starting point
Credit risk – Strong asset quality starting point Development of NPL ratio Development of NPL coverage in % in % 9.2 9.6 91 8.5 8.5 7.6 7.1 6.6 77 4.7 4.9 73 4.0 69 69 69 3.2 65 2.5 2.4 63 63 63 60 61 57 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 20 2008 2009 2010 2011 2012 2013
Slide 13: Credit risk – Gross credit exposure overview
Credit risk – Gross credit exposure overview Gross credit exposure by NACE code Focus exposures (gross) of which Industry / as of Savings Comments Category June 20 Banks Transport & comms Tourism Other • Demand from construction industry 3% 2% compensated partially for the lower capacities Construct
Slide 14: Credit risk – Further details on selected exposures
Credit risk – Further details on selected exposures Snapshot: real estate Snapshot: consumer loans RRE - Non-profit housing associations Czechia RRE - Other RRE for rent & sale Austria Savings banks 3% 7% RRE - Development projects 19% 19% Austria EBOe* Mixed portfolio Slovakia 25% CRE - Office Croa
Slide 15: Capital position – Strong fully loaded CET1 ratio of 14.2%
Capital position – Strong fully loaded CET1 ratio of 14.2% with additional cushion 0.55 0.17 0.27 0.12 0.07 14.22 0.40 0.30 13.72 Mid term FL CET1 target: 13.5% Reg. min CET1 10.2% (MDA threshold; P2G excluded) YE 19 ∆ RWA SME ∆ RWA Other OCI Minorities H1 20 profit H1 20 dividend CET1 - other Q2 20
Slide 16: Capital position – Regulatory quick fixes applied conservatively
Capital position – Erste Group applies regulatory quick fixes conservatively Applied by Phased-in/ Estimated impact Quick Fix From Comment Erste Group Fully loaded on CET1 ratio* SME Supporting Regulator pulled forward permanent Q2 20 Fully loaded +55 bps Factor introduction from 2021 to Q2 20 Sover
Slide 17: Conclusion – Key takeaways and outlook for 2020
Conclusion – Key takeaways and outlook for 2020 Q2 20 key takeaways 2020 outlook • From mid-March Covid-19 lockdowns caused • Covid-19 lockdowns redefine macro outlook Operating standstill in social and economic life • Real GDP decline of between 4-9% expected in environment • Reopening of economies
Slide 18: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q2 20 presentation • Executive summa
Slide 19: Executive summary – Group income statement performance
Executive summary – Group income statement performance QoQ net profit reconciliation (EUR m) YoY net profit reconciliation (EUR m) -59.9% -75.1% 732 108 121 31 146 235 552 294 718 129 30 58 72 66 86 168 Q1 20 Operating Operating Risk costs Other Taxes on Minorities Q2 20 1-6 19 Operating Operating R
Slide 20: Executive summary – Key income statement data
Executive summary – Key income statement data Net interest income & margin Operating result & cost/income ratio Cost of risk in EUR m in EUR m in EUR m -6.2% 2,330 2,397 2.18% 1,447 614 2.18% 2.10% 2.04% 1,357 66.8% 1.48% 675 55.5% 805 0.15% 1,229 1,168 552 62 -43 1-6 19 1-6 20 Q1 20 Q2 20 1-6 19 1-
Slide 21: Executive summary – Group balance sheet performance
Executive summary – Group balance sheet performance YTD total asset reconciliation (EUR m) YTD equity & total liability reconciliation (EUR m) +7.7% +7.7% 264,692 264,692 37 94 723 3,467 940 1,232 4,363 8,824 3,373 8,844 7,740 245,693 245,693 316 31/12/19 Cash Trading, Loans to Net loans Intangibles
Slide 22: Executive summary – Key balance sheet data
Executive summary – 31/12/19 Key balance sheet data 30/06/20 Loan/deposit & loan/TA ratio Net loans & credit RWA NPL coverage ratio & NPL ratio in EUR bn 92.2% 89.6% +2.2% 91.1% 65.2% 61.9% 160.3 163.7 77.1% 100.4 97.0 2.5% 2.4% Loan/deposit ratio Loans/total assets Net loans Credit RWA NPL coverage
Slide 23: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q2 20 presentation • Executive summa
Slide 24: Business environment – Recession in 2020, rebound expected in 2021
Business environment – 2020 2021 Recession in 2020 due to Coronavirus; rebound expected in 2021 Real GDP growth (in %) Dom. demand contribution* (in %) Net export contribution* (in %) Consumer price inflation (avg, in %) 7.1 6.4 4.5 5.4 5.0 4.7 4.2 3.9 4.1 4.2 4.2 3.3 3.4 3.0 3.1 2.9 0.7 2.8 0.9 0.6
Slide 25: Business environment – Policy rate cuts across CEE
Business environment – 3M Interbank 10YR GOV Policy rate cuts in across CEE Austria Czech Republic Romania 0.30% 2.15% 4.80% 4.34% 4.41% 1.82% 4.37% -0.11% -0.08% 1.37% -0.15% 2.07% 0.58% 1.45% 3.04% 2.87% -0.31% -0.35% 1.22% 1.00% 2.56% 2.24% -0.41% -0.30% 1-6 19 1-6 20 Q1 20 Q2 20 1-6 19 1-6 20 Q1
Slide 26: Business environment – CEE currencies weakened versus the euro
Business environment – CEE currencies have weakened versus the euro since COVID-19 outbreak EUR/CZK EUR/RON +2.6% +5.5% +4.8% +1.6% +0.8% +1.0% 25.7 26.4 25.7 27.1 25.4 26.7 4.74 4.82 4.80 4.84 4.79 4.84 1-6 19 1-6 20 Q1 20 Q2 20 31/12/19 30/06/20 1-6 19 1-6 20 Q1 20 Q2 20 31/12/19 30/06/20 • CZK re
Slide 27: Business environment – Stable market shares across the region
Business environment – 30/06/19 31/03/20 Stable market shares across the region 30/06/20 Gross retail loans Gross corporate loans Retail deposits Corporate deposits 20.7% 21.7% 20.3% 21.8% AT 20.5% AT 21.9% AT 20.8% AT 23.9% 23.5% 21.5% 25.6% 12.3% CZ 23.8% CZ 21.0% CZ 25.4% CZ 12.3% 23.8% 21.1% 25.
Slide 28: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q2 20 presentation • Executive summa
Slide 29: Business performance: performing loan stock & growth
Business performance: performing loan stock & growth – YoY 30/06/19 QoQ 31/03/20 Performing loans continued to grow, supported by state guarantees 30/06/20 154.2 5.9% • Yoy development more pronounced in Corporates (+7.9%) Group 160.3 163.3 1.9% than in Retail (+3.3%); solid contribution from Saving
Slide 30: Business performance: customer deposit stock & growth
Business performance: customer deposit stock* & growth – YoY 30/06/19 QoQ 31/03/20 Deposit build-up continues in Q2 20 30/06/20 169.7 7.7% • Continuation of exceptional deposit growth across most Group 181.7 182.7 0.5% geographies despite zero/low interest rate environment as 36.5 retail and corpora
Slide 31: Business performance: NII and NIM
Business performance: NII and NIM – Q2 19 Q1 20 NII flat yoy, down qoq mainly on rate cuts and FX effect in CZ Q2 20 1,169 2.18% • Yoy NII development shows decline in CZ due to rate cuts Group 1,229 2.18% 1,168 2.04% and CZK depreciation; offset by improvements in AT, RO and 156 1.56% RS AT/EBOe 16
Slide 32: Business performance: operating income
Business performance: operating income – YoY Q2 19 QoQ Q1 20 Rebounding trading and FV result in Q2 20 Q2 20 1,821 -0.7% • Yoy development relatively stable as improvements in trading Group 1,663 8.8% and FV result almost offset weaker fee income 1,809 • Qoq improvement almost solely due to rebound
Slide 33: Business performance: operating expenses
Business performance: operating expenses – YoY Q2 19 QoQ Q1 20 Cost discipline results in improved cost performance Q2 20 1,030 -2.6% • Yoy costs down despite wage inflation Group 1,111 -9.7% 1,003 • Qoq improvement mainly on booking of deposit insurance 166 contributions in Q1 20 (EUR 88.3m); decli
Slide 34: Business performance: operating result and CIR
Business performance: operating result and CIR – YoY Q2 19 QoQ Q1 20 CIR at 55.5% in Q2 20 Q2 20 Operating result YoY & QoQ change Cost/income ratio 791 56.6% Group 552 1.8% 66.8% 805 46.0% 55.5% 119 58.2% AT/EBOe -1.1% 67.1% 93 27.5% 118 58.1% 142 65.1% AT/SB 60 18.2% 83.1% 167 181.0% 61.1% 69 119.
Slide 35: Business performance: risk costs
Business performance: risk costs (abs/rel*) – Q2 19 Q1 20 Risk cost development in line with guidance Q2 20 -7 -0.02% • Yoy and qoq risk cost development driven by update of risk Group 62 0.15% parameters to reflect deteriorated macro outlook following 614 1.48% Covid-19 induced crisis -5 -0.06% • R
Slide 36: Business performance: non-performing loans and NPL ratio
Business performance: non-performing loans and NPL ratio – 30/06/19 31/03/20 NPL ratio stable at 2.4% 30/06/20 4,476 2.8% • NPL volume at EUR 4.0bn in Q2 20. NPL volume Group 3,944 2.4% 4,043 2.4% development driven by: 500 1.5% • Decelerating level of recoveries and upgrades partially offsets AT/EB
Slide 37: Business performance: allowances for loans and NPL coverage
Business performance: allowances for loans and NPL coverage – 30/06/19 31/03/20 NPL coverage rises to 91.1% 30/06/20 3,362 75.4% • NPL coverage increases yoy and qoq due to rising Group 3,171 80.9% 3,662 91.1% allowances 308 61.7% AT/EBOe 299 62.5% 333 73.6% • Year-on-year segment trends: 914 62.9%
Slide 38: Business performance: other result
Business performance: other result – Q2 19 Q1 20 Other result improves qoq Q2 20 -210 • Yoy other operating result improves mainly on non-recurrence Group -129 -43 of legal provisions due to RO high court decision in Q2 19 -6 • Qoq improvement due to resolution fund contributions and AT/EBOe -17 ful
Slide 39: Business performance: net result
Business performance: net result – Q2 19 Q1 20 Net profit declines on Covid-19 induced rise in risk costs Q2 20 355 • Yoy profitability hit by rising risk costs due to Covid-19 Group 235 induced risk cost development following updates on risk 58 parameters, offsetting improved other operating result
Slide 40: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q2 20 presentation • Executive summa
Slide 41: Assets and liabilities: YTD overview
Assets and liabilities: YTD overview – Loan/deposit ratio at 89.6% (Dec 19: 92.2%) Assets (EUR bn) Assets (in %) Liabilities & equity (EUR bn) Liabilities & equity (in %) 264.7 264.7 100% 2.7 100% 245.7 18.4 4.4% 7.0% 245.7 22.0 5.3% 1.0% 8.3% 2.4 1.0% 10.7 13.1 47.7 18.0% 18.0% 44.3 9.4% 23.1 27.4
Slide 42: Assets and liabilities: customer loans by country of risk
Assets and liabilities: customer loans by country of risk – Net customer loans up 2.2%, NPLs down 2.4% ytd Net customer loans (EUR bn) Performing loans (EUR bn) Non-performing loans (EUR bn) +2.2% +2.5% 160.2 161.1 163.7 159.3 160.3 163.3 5.9 5.9 -2.4% 5.2 5.4 5.2 5.4 8.5 9.3 8.8 8.4 9.3 8.8 1.9 2.0
Slide 43: Assets and liabilities: financial and trading assets
Assets and liabilities: financial and trading assets* – LCR at excellent 161.7% By geography By debtor type Liquidity buffer +7.1% in EUR bn in EUR bn 44.3 41.4 42.5 100% 27.0% 9.9% 9.2% 8.7% 10.7 8.4% 24.6% 10.5 10.4% 9.6% 23.0% 10.0 65.3 0.7 0.6 0.7 3.6 55.5 55.9 3.6 3.4 5.6 5.7 5.8 5.3 6.2 5.2 79
Slide 44: Assets and liabilities: customer deposit funding
Assets and liabilities: customer deposit funding – Customer deposits* up 5.1% ytd, driven by households By customer type By product type Highlights in EUR bn in EUR bn • Continued deposit inflows driven by Retail +5.1% segment with strong contribution from Corporate segment (esp. public sector) with
Slide 45: Assets and liabilities: debt vs interbank funding
Assets and liabilities: debt vs interbank funding – Reduced wholesale funding reliance, as customer deposits grow strongly Debt securities issued Interbank deposits in EUR bn in EUR bn +67.3% -3.1% 30.4 29.4 29.4 22.0 Sub debt 20.7 2.9 Overnight deposits 6.0 5.1 Senior non-preferred bonds 5.6 Term d
Slide 46: Assets and liabilities: LT funding
Assets and liabilities: LT funding – Stable LT funding needs in 2020 Maturity profile of debt in EUR bn 3.5 3.0 2.7 2.4 2.1 2.1 2.2 1.8 1.4 1.1 0.9 0.7 0.1 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ Senior unsec. bonds Senior non-preferred bonds Covered bonds Capital exc Tier
Slide 47: Assets and liabilities: LT funding – Targeting MPE approach
Assets and liabilities: LT funding – Targeting MPE approach Resolution strategy Austrian resolution group • Direct presence in 7 geographically connected countries • Major entities within the Austrian resolution group*: • Erste Group’s setup suggests a multiple point of entry (MPE) • Erste Group Ban
Slide 48: Assets and liabilities: LT funding – MREL issuance volume
Assets and liabilities: LT funding – Expected total MREL-related issuance volume unchanged MREL resolution groups (2019) Preliminary 5-year issuance plan (avg. p.a.) in EUR bn in EUR m 152 3,500-5,000 76 57 21 19 16 ~400-500 ~200-300 ~100-300 ~100-300 8 7 10 7 9 6 ~100-150 AT CZ SK RO HR HU Holding
Slide 49: Assets and liabilities: capital position
Assets and liabilities: capital position – CET1 ratio rises to a strong 14.2%, phased-in to 14.3% Basel 3 capital Risk-weighted assets Basel 3 capital ratios in EUR bn in EUR bn 19.1% 18.5% 18.3% 17.7% 17.7% 21.8 22.0 22.0 118.8 121.4 120.5 21.5 21.3 118.6 15.9% 3.2 115.3 15.0% 14.8% 2.9 14.8% 2.8 3
Slide 50: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q2 20 presentation • Executive summa
Slide 51: Additional information: segment structure
Additional information: segment structure – Business line and geographic view Erste Group – Business segments ALM & Group Group Savings Intragroup Retail Corporates Local CC Corporate Markets Banks Elimination (ALM&LCC) Center • SME • Other Subsidiaries • Large Corporate • Asset/Liability Management
Slide 52: Additional information: income statement
Additional information: income statement – Year-to-date and quarterly view Year-to-date view Quarterly view in EUR million 1-6 19 1-6 20 YOY-Δ Q2 19 Q1 20 Q2 20 YOY-Δ QOQ-Δ Net interest income 2,329.7 2,396.9 2.9% 1,168.8 1,229.0 1,167.9 -0.1% -5.0% Interest income 2,742.0 2,645.2 -3.5% 1,385.5 1,39
Slide 53: Additional information: group balance sheet – Assets
Additional information: group balance sheet – Assets Quarterly data Change in EUR million Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 YOY-Δ YTD-Δ QOQ-Δ Cash and cash balances 16,843 15,638 10,693 23,031 18,433 9.4% 72.4% -20.0% Financial assets held for trading 6,464 7,215 5,760 7,706 6,984 8.0% 21.3% -9.4%
Slide 54: Additional information: group balance sheet – Liabilities and equity
Additional information: group balance sheet – Liabilities and equity Quarterly data Change in EUR million Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 YOY-Δ YTD-Δ QOQ-Δ Financial liabilities held for trading 2,518 2,751 2,421 3,322 2,737 8.7% 13.0% -17.6% Derivatives 2,125 2,411 2,005 2,945 2,308 8.6% 15.1% -
Slide 55: Additional information: regulatory capital position/requirement (SREP)
Additional information: regulatory capital position/requirement (SREP) – Capital requirements (SREP) for 2020; Erste Group target of 13.5% unchanged • Combined impact of reduced countercyclical buffers results in expected 18 bps at year-end 2020 Erste Group Consolidated Erste Group Unconsolidated EC
Slide 56: Additional information: gross customer loans
Additional information: gross customer loans – By risk category, by currency, by industry Gross cust. loans by risk category (EUR bn) Gross customer loans by currency (EUR bn) Gross customer loans by industry (EUR bn) 163.4 164.3 167.4 163.4 164.3 167.4 167.4 158.7 161.1 158.7 161.1 163.4 164.3 4.5
Slide 57: Additional information: footprint
Additional information: footprint – Customer banking in Austria and the eastern part of the EU Erste Group footprint Highlights Czech Republic Slovakia • Leading retail and corporate bank Customers: 4.5m Customers: 2.2m in 7 geographically connected Employees: 9,946 Employees: 4,010 countries CZ Bra
Slide 58: Additional information: strategy
Additional information: 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 customer
Slide 59: Additional information: Ratings – Composition of issuer ratings
Additional information: Ratings – Composition of Erste Group Bank AG’s issuer ratings Macro Profile SACP - Stand-Alone Credit Profile VR - Viability Rating Strong a (Individual Rating ) + Financial Profile ▲ a- Asset Risk baa2 Anchor bbb+ Capital baa1 Business Position Strong +1 Profitability baa3 C
Slide 60: Additional information: ESG ratings, indices and alignment with UN SDGs
Additional information: ESG ratings, indices and alignment with UN SDGs ESG Indices and Ratings UN Sustainable Development Goals In principle, Erste Group supports all SDGs. Given its regional footprint Erste Group has been included in the Vienna Stock and business model, Erste Group is in fact able
Slide 61: Additional information: shareholder structure
Additional information: shareholder structure – Total number of shares: 429,800,000 By investor By region Unidentified * Erste Foundation 1 Unidentified * Identified Trading ** 9.82% 11.41% Identified Trading ** 9.82% Savings Banks & 2.02% Savings Banks Rest of world 2.02% Austria Foundations 2 3.17
Slide 62: The monetary policy reaction
The monetary policy reaction – A combination of rate cuts and quantitative easing Type of measures • ECB (as part of the euro zone, actions applicable in AT & SK) cut its key rate to 0% in 2016; cut the deposit rate by 10 bps to -0.5% in 2019 • ECB lowered financing costs for banks (TLTRO 3, PELTRO)
Slide 63: The regulatory reaction
The regulatory reaction – Pragmatism paired with dividend restrictions Type of measures • OeNB recommends banks to postpone share buybacks and consider the distribution of dividends with particular care • Potential recalibration of SRB and OSII buffers to prevent effective buffer requirements from i
Slide 64: The political/fiscal reaction
The political/fiscal reaction – Lockdowns followed by fiscal support measures across CEE Loan moratoria/payment holidays ✓ ✓ ✓ ✓ ✓ ✓ ✓ Loan guarantees, bridge loans ✓ ✓ ✓ ✓ ✓ ✓ ✓ Labour market support (eg short-time work schemes) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Tax incentives (Cuts, holidays, deferrals)
Slide 65: The political/fiscal reaction – Details on moratoria
The political/fiscal reaction – Details on moratoria Opt-in / Retail / Partici- Upfront Main characteristics Period out Corp pation* loss Ext. to • Statutory Retail Retail: 5% Opt-in up to 7 None • Interest charged during deferral period & paid after the moratoria Micro Corp: 5% months • Statutory R
Slide 66: The political/fiscal reaction – Details on loan guarantees
The political/fiscal reaction – Details on loan guarantees Main characteristics Guarantee Interest Period Subsidised • EUR 9bn programme for loans and guarantees for enterprises, especially SMEs Up to 100% (varies by 2-5 years • Bridging loans in case of liquidity shortages products) 80-90% Subsidis
Slide 67: Our response to Coronavirus
Our response to Coronavirus – Erste Group is there for its customers, communities and employees Employees Retail customers Corporate customers Communities 70%-95% of HQ employees in Branches remaining open & Expanding client advisory & Supporting health care workers, home office in March-May extendi
Slide 68: Investor relations details
Investor relations details • Erste Group Bank AG, Am Belvedere 1, 1100 Vienna E-mail: investor.relations@erstegroup.com Internet: http://www.erstegroup.com/investorrelations http://twitter.com/ErsteGroupIR http://www.slideshare.net/Erste_Group Erste Group IR App for iPad, iPhone and Android http://w