Erste Group Bank Ag · VIE:EBS
Erste Group Bank — FY2010 Earnings Presentation
83 slides from Erste Group Bank's earnings presentation, Feb 25, 2011
Slide 1: Erste Group – 2010 preliminary results presentation
Erste Group – 2010 preliminary results presentation 25 February 2011, Vienna Strong operating performance and declining risk costs drive 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: 2010 executive summary – Strong operating performance & declining risk costs
2010 executive summary – Strong operating performance & declining risk costs − Continued strong operating performance – cost/income ratio improved to 48.9% (2009: 50.2%) − Operating income rose by 3.0% to EUR 7,804.7m due to strong NII and fee income, which more than offset a 22% decline in net trad
Slide 4: Presentation topics
Presentation topics * − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 2010 financials and segment reporting − Appendix *) The following tables and texts may contain rounding differences. 25 February 2011 2010 Preliminary Results Vienna 4 Conference Call
Slide 5: Erste Group's business – Retail market leadership in the eastern part of the EU
Erste Group’s business – Retail market leadership in the eastern part of the EU − Focus on the eastern part of the European Union − Erste Group is the leading retail bank − Erste Group is one of the leading corporate banks − Erste Group is the leading bond originator − Erste Group is the leading fun
Slide 6: Operating environment: macro trends – What happened in CEE in 2010?
Operating environment: macro trends – What happened in CEE in 2010? − Industry was the main economic growth driver in CEE in 2010 − Economic recovery was export-driven in most of CEE (AT, CZ, SK & HU) − Improved household consumption in selected countries, e.g. AT, CZ − Fiscal discipline turned out
Slide 7: Operating environment: macro trends – Economic growth outlook in CEE
Operating environment: macro trends – Focus: Economic growth outlook in CEE − In 2011 more balanced growth is expected Real GDP growth in CEE supported by a rebound of domestic demand 8% 4.1% 4.0% − Domestic demand expected to pick up and become 2.8% 2.3% 2.2% 2.0% 1.9% an important growth contribut
Slide 8: Operating environment: banking tax – Update on Hungary & Austria
Operating environment: banking tax – Update on banking tax in Hungary & Austria − Hungary: post-tax impact was EUR 40.3m in Split of derivative positions 2010 (pre-tax: EUR 49.8m) (31 Dec 2010: EUR 511 bn) − Tax is based on adjusted balance sheet total (adjusted for loans to and securities of EU-bas
Slide 9: Presentation topics
Presentation topics − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 2010 financials and segment reporting − Appendix 25 February 2011 2010 Preliminary Results Vienna 9 Conference Call
Slide 10: 2010 financial highlights – Rising net profitability and resilient margins
2010 financial highlights – Rising net profitability and resilient margins − Net profit grew by 12.4% to EUR 1,015.4 million Cash earnings per share * − Lower cash-EPS and cash-ROE due to substantially enlarged capital base 5.0 − Issuance of participation capital in H1 09 (EUR 1.76bn) 3.92 − Issuanc
Slide 11: 2010 financial highlights – Operating result continued to perform well
2010 financial highlights * – Operating result continued to perform well in EUR million 2010 2009 Change Q4 10 Q3 10 Q4 09 Retail & SME 3,177.2 3,005.9 5.7% 799.4 808.0 851.1 Austria 853.6 816.2 4.6% 223.6 210.2 231.2 EB Oesterreich 394.3 328.3 20.1% 103.7 96.8 84.7 Savings banks 459.3 488.0 (5.9%)
Slide 12: 2010 financial highlights – Record operating income, strict cost control
2010 financial highlights – Record operating income, strict cost control Operating income per quarter Operating expenses per quarter 2,500 1,200 1,954 2,010 927 953 945 973 945 1,922 1,936 1,905 1,000 2,000 82 141 99 144 72 94 97 95 102 in EUR million 105 in EUR million 460 472 494 476 495 800 1,500
Slide 13: Presentation topics
Presentation topics − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 2010 financials and segment reporting − Appendix 25 February 2011 2010 Preliminary Results Vienna 13 Conference Call
Slide 14: Customer deposit review – Deposit growth continued to outpace loan growth
Customer deposit review – Deposit growth continued to outpace loan growth − Customer deposits grew by 4.4% in 2010 (+1.5% qoq) Customer deposit trends by main segments − Primarily a result of steady growth in Austria and strong inflows in the Czech Republic and Romania 115.6 116.6 117.0 125 112.0 11
Slide 15: Loan book review – Loan demand remained subdued
Loan book review – Loan demand across the segments remained subdued − Customer loans increased by 2.8% yoy; up 0.9% qoq − Retail & SME segment growth mainly driven by currency Customer loans by main segments * movements (EUR/CZK, EUR/CHF, CHF/HUF) 150 132.7 − Underlying growth pockets: Romanian mort
Slide 16: Asset quality review – Declining NPL formation, rising coverage
Asset quality review – Group trends: declining NPL formation, rising coverage − New NPL formation decreased yoy and qoq; Erste Group: NPL ratio vs NPL coverage risk costs improved to 155bps in 2010 − Risk costs as a percentage of average customer 30% 65% loans amounted to 161 bps in 2009; 134 bps in
Slide 17: Asset quality review – Austria excelled, CEE still mixed
Asset quality review – Segment round-up: Austria excelled, CEE still mixed − Retail & SME/Austria: improving asset quality NPL ratios in key segments leads to reduced NPL ratio − Fall in non-performing and substandard category as 20% 18.0% well as increase in low risk asset class continued − NPL cov
Slide 18: Asset quality review – Slovakia led in CEE
Asset quality review – Segment round-up cont'd: Slovakia led in CEE − Slovakia: highest portfolio quality in CEE Risk costs in key segments − Continuously improving migration trends − Stable NPL ratio, even after adjusting for NPL sales 700 607 − Steady decrease in risk costs 600 60 531 553 504 35 −
Slide 19: Erste Group's funding profile
Erste Group’s funding profile – Retail deposits remained a key pillar in the funding mix − Customer deposits remained the primary source of funding Evolution of Erste Group's funding mix − Providing a solid funding base in all local currencies − Reflected in loan/deposit ratio improvement to 113.4%
Slide 20: Erste Group's capital position – Retained earnings drive capital growth
Erste Group’s capital position – Retained earnings drive capital growth − Total equity (IFRS) increased by EUR 1 Total capital reconciliation billion (+6.2%) year-to-date based on: 18 − Retained earnings 16.1 0.1 0.1 0.1 -0.4 -0.1 17.1 1.2 − Incremental positive effects from AfS 16 in EUR billion 3.
Slide 21: Erste Group's capital position – Further strengthening of capital ratios
Erste Group’s capital position – Further strengthening of capital ratios Tier 1 ratio Core tier 1 ratio (total risk)1 (total risk)2 10.2% 9.2% 9.2% 8.3% 6.2% 5.2% 2008 2009 2010 2008 2009 2010 1) Tier 1 ratio (total risk) = tier 1 capital incl. hybrid and after regulatory deductions divided by total
Slide 22: Conclusion – Outlook
Conclusion – Outlook − CEE economies set to continue economic recovery in 2011 − All of Erste Group’s CEE markets are expected to grow in 2011 − Austria, Czech Republic and Slovakia to build on their solid performance of 2010 − Romania to emerge from recession: meaningful growth not before H2 2011 −
Slide 23: Presentation topics
Presentation topics − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 2010 financials and segment reporting − Appendix 25 February 2011 2010 Preliminary Results Vienna 23 Conference Call
Slide 24: Group income statement (IFRS) – Accelerating net profit recovery
Group income statement (IFRS) – Accelerating net profit recovery in EUR million 2010 2009 Change Q4 10 Q3 10 Q4 09 Net interest income 5,412.5 5,220.9 3.7% 1,337.0 1,390.7 1,380.0 Risk provisions for loans and advances (2,031.2) (2,056.6) (1.2%) (442.8) (504.2) (607.4) Net fee and commission income
Slide 25: Group balance sheet (IFRS) – Loan-to-deposit ratio stable at 113.4%
1 Group balance sheet (IFRS) – Loan-to-deposit ratio stable at 113.4% in EUR million Dec 10 Dec 09 Change Cash and balances with central banks 5,839 5,996 (2.6%) Loans and advances to credit institutions 12,496 13,140 (4.9%) Loans and advances to customers 132,729 129,134 2.8% Risk provisions for lo
Slide 26: Group balance sheet (IFRS) – Stronger balance sheet driven by deposits
Group balance sheet (IFRS) * – Stronger balance sheet driven by deposits and own issues in EUR million Dec 10 Dec 09 Change Deposits by banks 20,154 26,295 (23.4%) Customer deposits 117,016 112,042 4.4% Debt securities in issue 31,298 29,612 5.7% Derivative financial instruments 7,996 3,749 >100,0%
Slide 27: Segment review – Core segments
Segment review – Core segments Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 Net interest income 4,593.8 4,530.3 574.2 570.5 156.4 193.2 88.1 (73.1) 5,412.5 5,220.9 Risk provisions (1,844.6) (1,788.6) (186.5) (267.9) 0.0
Slide 28: Core segment – Austria
Core segment – Austria Erste Bank Oesterreich drives improvement in Austria Savings Banks EB Oesterreich Austria in EUR million 2010 2009 2010 2009 2010 2009 Net interest income 941.4 957.1 644.3 637.5 1,585.8 1,594.6 Risk provisions (303.3) (331.3) (148.3) (151.4) (451.6) (482.7) Net fee and commis
Slide 29: 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 2010 2009 2010 2009 2010 2009 2010 2009 Net interest income 1,087.2 1,080.8 798.6 836.8 426.8 385.9 387.1 353.6 Risk provisions (365.8) (288.1) (506.7) (53
Slide 30: Core segment Central and Eastern Europe (2)
Core segment Central and Eastern Europe (2) – … and risk cost levels across the region Croatia Serbia Ukraine CEE in EUR million 2010 2009 2010 2009 2010 2009 2010 2009 Net interest income 247.9 223.4 27.5 28.1 32.9 27.1 3,008.0 2,935.7 Risk provisions (106.0) (74.5) (8.2) (7.0) (38.8) (76.7) (1,393
Slide 31: Segment Retail & SME – Solid performance in Q4 and throughout the year
Segment Retail & SME – Solid performance in Q4 and throughout the year − Retail & SME segment is the key profit contributor Segment operating performance − Operating result grew by 5.7% in 2010 (-1.1% qoq) 2,000 1,635 1,558 1,641 1,638 1,606 based on continued cost control and higher revenues 1,500
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 120 108.6 110.0 111.5 112.5 113.3 100% 2.2% 2.3% 2.3% 2.2% 2.2% 5.7 5.9 5.9 6.4 14.2% 14.4% 15.0% 14.6% 15.1% 5.6 80% 90 in EUR billion 42.5
Slide 33: Segment GCIB – Decrease in risk costs led to improved net profit
Segment GCIB – Decrease in risk costs led to improved net profit − Operating result unchanged at EUR 556.2m in 2010 Segment operating performance − Operating income was stable (+1.3% yoy) driven by re-pricing of loans and cutback in international business 250 − Fee income fell by 1.6% in 2010 as lar
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% 3.6% 1.3% 4.6% 1.3% 4.1% 1.2% 4.0% 1.2% 3.9% 1.3% 5.5% 5.7% 5.3% 5.9% 4.9% 12.5% 13.4% 14.1% 11.8% 11.5% 80% 19.5 19.6 19.0 in EUR billion 18.4 18.7 20 1.1 1
Slide 35: Segment Group Markets – Solid 2010 results could not match record 2009
Segment Group Markets – Solid 2010 results could not match record 2009 − Operating result decreased by 32.6% to EUR 326.2m in Segment operating performance 2010 − Revenues contracted by 20.7% in 2010 on outstanding 2009 200 172 performance 141 131 150 115 115 116 − Declining contribution from money
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 business lines, one-offs and Group ALM 40 34 18 − Line-item analysis 20 10 0 in EUR million − NII substantially improved
Slide 37: Retail & SME: Austria/EB Oesterreich – Continued strong operating performance
Retail & SME: Austria/EB Oesterreich – Continued strong operating performance, NPLs decline − Operating result improved by 20.1% in 2010 to EUR Segment operating performance 394.3m (+7.2% qoq) − NII was up by 1.1% to EUR 644.3m; customer deposits increased by 3.6% and customer loans were up by 5.0%
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 26.1 26.4 26.8 26.9 27.4 100% 1.9% 1.9% 2.1% 2.0% 2.0% 1.7 15.1% 15.3% 15.8% 15.5% 16.0% 1.4 1.4 1.4 1.5 80% in EUR bi
Slide 39: Retail & SME: Austria/Savings banks – Clearly improved in 10
Retail & SME: Austria/Savings banks – Clearly improved in 2010 − Operating result declined by 5.9% from EUR 488.0m in Segment operating performance 2009 to EUR 459.3m − NII slightly decreased by 1.6% in 2010 (-2.6% qoq) on continuing margin pressure 400 356 339 356 347 349 − Fee income increased by
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 35.9 36.1 36.7 36.9 37.3 100% 3.0% 3.3% 3.3% 3.4% 3.3% 1.6 1.7 1.7 1.6 18.9% 19.3% 1.6 19.8% 19.5% 20.2% 80% 30 in EUR bi
Slide 41: Retail & SME: Czech Republic – Continued solid operating performance
Retail & SME: Czech Republic – Continued solid operating performance − Operating result improved by 7.4% (+2.7% FX- adjusted)1 yoy to EUR 916.6m Segment operating performance − NII slightly improved by 0.6% yoy (-3.8%); continued pressure 500 391 393 424 419 on deposit margins from historic low inte
Slide 42: Retail & SME: 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 17.3 17.9 17.5 100% 0.1% 3.3% 0.1% 3.4% 0.1% 3.5% 0.2% 3.5% 0.2% 3.9% 16.7 17.1 0.7 0.7 0.7 0.7 0.7 16 80% in EUR billion 5.3
Slide 43: Retail & SME: Romania – Macro environment continued to impact performance
Retail & SME: Romania – Macro environment continued to impact performance − Operating result decreased by 9.8% in 2010 (-10.4% Segment operating performance FX-adjusted)1, and by 18.2% qoq − NII down 4.6% (-5.2%) impacted by new business being mainly 350 306 low risk (prima casa), by reduced leasing
Slide 44: Retail & SME: 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% 2.1% 2.2% 2.0% 1.8% 1.6% 11.2 11.4 11.2 11.2 11.2 12 80% in EUR billion 1.2 1.3 1.2 1.4 1.5 56.6% 56.4% 59.5% 59.2% 60.6% 9 60% 4.2 4.3 4.2 4.
Slide 45: Retail & SME: Slovakia – Excellent Q4 completed a strong year
Retail & SME: Slovakia – Excellent Q4 10 completed a strong year − Operating result increased by 26.5% to EUR 315.2m in 2010 (+24.1% qoq) Segment operating performance − NII continued to improve: up 10.6% in 2010 to EUR 426.8m on the back of growing retail loans (mainly mortgages) and 200 selective
Slide 46: Retail & SME: 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% 0.7% 0.4% 0.4% 0.4% 0.4% 5.7 5.5 5.6 5.7 5.7 80% 6 in EUR billion 0.1 0.1 0.1 0.1 0.1 1.8 1.5 1.5 1.5 1.4 60% 4 0.3 0.3 0.3 0.3 0.3 99.3% 99
Slide 47: Retail & SME: Hungary – Net profit negatively impacted by banking tax
Retail & SME: Hungary – Net profit negatively impacted by banking tax, risk costs − Operating result advanced by 19.5% in 2010 (+17.3% Segment operating performance FX- adjusted)1 to EUR 305.5m − Strongly supported by NII, which rose by 9.5% in 2010 (+7.4%), 150 137 127 122 119 126 due to loan repri
Slide 48: Retail & SME: 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% 0.6% 0.4% 0.5% 0.2% 0.2% 22.6% 21.7% 23.2% 22.0% 20.8% 7.4 7.6 7.6 7.8 8 7.3 80% 0.4 0.4 0.4 in EUR billion 0.3 0.4 6 2.3 2.4 2.3 2.3 2.3 60%
Slide 49: Retail & SME: Croatia – Solid operating performance offset by risk costs
Retail & SME: Croatia – Solid operating performance offset by higher risk costs − Operating result improved by 9.3% (+8.5% FX- Segment operating performance adjusted)1 to EUR 192.6m in 2010 − NII improved by 10.9% (+10.1%) on better margins in both the 100 87 86 80 83 retail and the corporate busine
Slide 50: Retail & SME: 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 6 5.4 5.3 5.5 100% 0.2% 0.2% 0.1% 0.1% 0.2% 15.4% 15.6% 15.6% 15.3% 15.4% 4.7 4.7 0.4 0.3 0.4 0.3 0.3 80% in EUR billion 4 2.4 2.3 2.4 1.9 1.9 60% 59.
Slide 51: Retail & SME: Serbia – Asset quality improves
Retail & SME: Serbia Asset quality improves despite challenging environment − Operating result declined by 4.9% in 2010 ( but was up Segment operating performance 4.2% FX-adjusted)1 to EUR 10.4m − NII declined by 2.0% (+7.3%) due to significant fall in local market 15 11 12 interest rates, affecting
Slide 52: Retail & SME: 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% 0.9% 3.2% 0.9% 1.3% 1.1% 1.1% 518.2 517.0 3.3% 4.7% 4.3% 4.4% 9.2 8.9 417.0 431.3 80% 391.5 in EUR million 2.3 2.3 400 5.7 63.9% 60% 77.1% 75.5%
Slide 53: Retail & SME: Ukraine – Operating performance and risk continues to improve
Retail & SME: Ukraine – Operating performance and risk continues to improve − Operating result improved by EUR 1.9m to EUR 1.6m Segment operating performance (2009: EUR -0.3m) − NII increased by 21.5% in 2010 (14.3% FX adjusted1) on higher interest income from high-yielding government bonds 20 14 14
Slide 54: Retail & SME: 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% 1.9% 1.6% 1.4% 1.5% 1.3% 544.8 560.5 80% 600 in EUR million 509.0 0.0 0.0 492.3 486.3 0.0 69.1 72.9 64.5 0.0 0.0 60% 64.3 71.8 87.2% 86.2% 85
Slide 55: Presentation topics
Presentation topics − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 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 – Stable exposure, slight improvement in prices
Key topics: ABS/CDO portfolio* Stable exposure, slight improvement in prices − Face value decreased by EUR 102m to EUR 2,299m in Q4 2010 and by EUR 165m during 2010 − Transactions with face value of EUR 53m were called in Q4 10 ABS/CDO portfolio by book (Dec 2010)* − Divestments of EUR 67m in Q4 10
Slide 57: Key topics: ABS/CDO portfolio – Detailed portfolio analysis
Key topics: ABS/CDO portfolio Detailed portfolio analysis ABS/CDO portfolio by ratings Dec 2010)* ABS/CDO portfolio by region Dec 2010)* % of total % of total in EUR m Face Value Market Value +/-% in EUR m Face Value Market Value +/-% (market value) (market value) AAA 248 228 (8.1%) 12.8% USA 881 75
Slide 58: Presentation topics
Presentation topics − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 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 150 132.7 129.1 130.3 131.0 131.5 3.9% 5.6% 7.0 7.1 7.2 7.6 3.2% 120 6.7 2.9% 5.2% 39.0% in EUR billion 61.0 60.7 60.3 60.1 60.6 4.7% 90 60 13.4 13.5 13.7 13.6 13.5 5.4% 30 48.0
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 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Retail & SME 81,200 77,484 18,109 1
Slide 62: 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 milioane EUR Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Share of total Share of total Core market 86,949 85,141 20,782 20,937 5,817 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 milioane EUR Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Dec 10 Dec 09 Share of total Share of total Agriculture and forestry 970 1,040 626 596 138 142 211 155 1,9
Slide 64: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (31 Dec 2010: EUR 33.9 bn) (31 Dec 2010: EUR 33.9 bn) 3.8% 18.2% 3.6% 5.1% 26.4% 4.0% 7.5% 2.9% 6.8% 16.9% 63.2% 16.2% 4.0% 9.4% 5.9% 6.3% AT CZ SK US DE HU RO IT GB Other EUR CZK USD HU
Slide 65: Presentation topics
Presentation topics − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 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 2010 2009 Rate and margin environment Cost/income ratio 41.1% 42.3% Return on equity 18.2% 20.3% 80% 72.5% 8% 68.1% 65.7% 68.7% 68.6% Dec 10 Dec 09 Change Erste Group stake 97.99% Solvency ratio 13.9% 12.3% 60% 6% 4
Slide 67: Key local entity data – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 2010 2009 Rate and margin environment Cost/income ratio 36.9% 34.5% 145.6% 145.5% 145.1% 143.6% 138.1% Return on equity 6.7% 13.5% 150% 15% Dec 10 Dec 09 Change Erste Group stake 69.17% 10.6% 12% Solvency ratio 12.8% 11.9% 100%
Slide 68: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 2010 2009 Rate and margin environment Cost/income ratio 40.5% 48.6% Return on equity 17.7% 3.9% 100% 8% Dec 10 Dec 09 Change 77.5% 76.5% 78.0% 76.0% 74.5% Erste Group stake 100.0% 80% Solvency ratio 13.2% 10.5%
Slide 69: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 2010 2009 Rate and margin environment Cost/income ratio 39.4% 44.0% Return on equity 0.1% 14.8% 270% 12% Dec 10 Dec 09 Change 192.3% 203.4% 203.1% 10% Erste Group stake 99.94% 182.1% Solvency ratio 12.4% 13.0% 171
Slide 70: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 2010 2009 Rate and margin environment Cost/income ratio 38.1% 40.4% Return on equity 11.1% 13.1% 150% 12% Dec 10 Dec 09 Change 117.0% 121.6% 120.3% 123.2% 111.9% Erste Group stake 69.25% 120% Solvency ratio 15.1%
Slide 71: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 2010 2009 Rate and margin environment Cost/income ratio 72.5% 71.3% Return on equity n.a. 3.6% 120% 20% Dec 10 Dec 09 Change 99.8% 95.8% 96.1% 94.8% 93.6% Erste Group stake 80.49% 100% 13.0% Solvency ratio 17.5% 25
Slide 72: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 2010 2009 Rate and margin environment Cost/income ratio 72.2% 66.0% 19.0% Return on equity na na 700% 604.0% 20% Dec 10 Dec 09 Change 600% Erste Group stake 100.0% 477.2% Solvency ratio 24.7% 17.6% 500% 15% 405.1%
Slide 73: Presentation topics
Presentation topics − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 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 (IFRS)
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Net interest income 1,226.0 1,279.3 1,335.6 1,380.0 1,323.6 1,361.2 1,390.7 1,337.0 Net fee and commission income 444.6 443.6 425.1 459.5 471.5 493.5 475.7 495.3 Net tra
Slide 75: Erste Group historic financials – Quarterly balance sheet (IFRS)
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Cash and balances with central banks 7,783 6,854 7,692 7,556 5,897 6,897 5,458 5,996 5,965 6,540 5,030 5,839 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 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Net interest income 1,158.1 1,129.1 1,161.3 1,169.4 1,134.0 155.8 147.6 145.4 152.5 128.7 Risk provisions (563.0) (451.
Slide 77: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Net interest income 152.5 158.9 160.4 162.4 162.6 239.8 230.5 246.8 235.2 228.9 Risk provisions (38.0) (44.8) (42.9) (36.5) (24.1) (90.6)
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 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Net interest income 258.9 264.5 271.6 274.7 276.4 246.5 213.1 202.0 206.6 176.8 Risk provisions (84.9) (97.2) (90.9) (96.0) (81.
Slide 79: Quarterly segment reporting – CEE sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Net interest income 58.0 56.1 61.5 65.2 65.1 6.2 6.1 6.4 7.6 7.5 Risk provisions (29.1) (25.3) (23.2) (30.3) (27.1) (0.9) (2.2) (2.5) (2
Slide 80: Presentation topics
Presentation topics − Business snapshot and operating environment − 2010 financial highlights − 2010 key topics − 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 Dec 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 12.238 Total own funds
Slide 82: Shareholder structure
Shareholder structure – Total number of shares: 378,176,721 By investor By region Criteria CaixaCorp Other 10.1% 2.3% Continental Europe 25.3% 20.5% Austria 47.6% Employees UK & Ireland 2.3% Savings banks 9.0% 4.4% Retail investors Institutional 6.6% investors 51.3% North America 20.7% Free float: 6
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 Thomas Sommerauer Tel: +43 (0)5 0100 1