Erste Group Bank AG · VIE:EBS
Erste Group Bank — Shareholder Meeting (May 2016)
39 slides from Erste Group Bank's shareholder meeting presentation, May 11, 2016
Slide 1: 23rd Annual General Meeting Erste Group Bank AG
23rd Annual General Meeting Erste Group Bank AG 11 May 2016 Austria Center Vienna Page
Slide 2: Friedrich Rödler, Chairman of the supervisory board
Friedrich Rödler Chairman of the supervisory board Page
Slide 3: First item on the agenda: Report on the financial year 2015
First item on the agenda Report on the financial year 2015 Page 3
Slide 4: Report on the financial year 2015 of Erste Group Bank AG (consolidated)
Report on the financial year 2015 of Erste Group Bank AG (consolidated) Andreas Treichl CEO Erste Group Page
Slide 5: 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 6: Operating environment – Strong economic development in Erste Group's markets
Operating environment – 2015 Strong economic development in Erste Group‘s markets 2016 Real GDP growth (in %) Domestic demand contribution to GDP growth (in %) 5.3 4.3 4.1 4.6 4.7 4.8 3.6 3.5 3.8 2.9 2.5 2.2 2.2 1.5 1.6 1.5 1.6 1.8 1.7 1.3 1.1 1.1 0.9 0.7 AT CZ SK RO HU HR AT CZ SK RO HU HR • CEE ec
Slide 7: Operating environment – Solid public finances in Erste Group's markets
Operating environment – 2015 Solid public finances in Erste Group‘s markets 2016 General government balance (in % of GDP) Public debt (in % of GDP) 87 85 87 88 Maastricht limit: 60% 75 75 -1.1 53 53 -1.4 -1.4 -1.5 41 40 39 41 -1.9 -1.9 -2.0 -2.5 -3.0 -3.0 -3.2 -3.3 Maastricht limit: -3% AT CZ SK RO
Slide 8: Business environment – Historic low interest rate environment poses challenges
Business environment – 3m Interbank Historic low interest rate environment poses challenges 10-year Gov Austria Czech Republic Romania 1.48% 1.55% 4.57% 4.03% 1.11% 1.11% 0.21% 0.36% 0.33% 0.10% 2.29% 1.70% 2014 2015 2014 2015 2014 2015 • ECB cut discount rate to 0% in March 16; • National bank main
Slide 9: Customer loans and deposits – Continued loan growth, stable deposit base
Business performance: customer loans and deposits – 31/12/14 31/12/15 Continued loan growth, stable deposit base, balanced business Customer loans (net) Customer deposits Loan/deposit ratio 120.8 122.6 98.6% Group 125.9 127.9 98.4% 28.3 29.9 94.6% AT/EBOe 29.5 30.3 97.4% 37.0 36.1 102.6% AT/SB 38.0
Slide 10: Operating revenues and expenses – Pressure on revenues, slight increase in costs
Business performance: operating revenues and expenses – Pressure on revenues, slight increase in costs Operating revenues Operating expenses -1.5% in EUR m in EUR m 6,878 6,772 242 271 210 255 +2.2% 1,870 1,862 3,787 3,869 466 445 1,137 1,179 4,495 4,445 2,184 2,245 2014 2015 2014 2015 Net interest
Slide 11: Operating result and cost/income ratio – Operating result slips year-on-year
Business performance: operating result and cost/income ratio – 2014 2015 Operating result slips year-on-year Geographic segments Performance summary 3,091 55.1% • Positive operating performance in: Group 57.1% 2,903 • EB Oesterreich 390 61.8% AT/EBOe 400 61.6% • Savings Banks 447 67.6% • Other Austr
Slide 12: Risk costs – Risk costs fall in almost all segments
Business performance: risk costs – 2014 2015 Risk costs fall in almost all segments Geographic segments Performance summary 2,084 1.63% • Healthy or improving credit risk environment Group 729 0.56% across the board: AT/EBOe 104 0.36% • Romania 59 0.20% AT/SB 199 0.50% • Austria, supported by all th
Slide 13: Asset quality in 2015 – Strong asset quality improvement
Business performance: asset quality in 2015 – 31/12/14 31/12/15 Strong asset quality improvement driven by Hungary, Romania and Croatia NPL volume NPL ratio NPL coverage (exc collateral) Group 10,878 8.5% 68.9% 9,314 7.1% 64.5% AT/EBOe 1,012 3.5% 68.9% 861 2.9% 62.6% AT/SB 2,441 6.3% 64.0% 2,219 5.6
Slide 14: Other result – Improvement driven by lower one-offs
Business performance: other result – Improvement in Other result driven by lower one-offs Other result * Levies on banking activities in EUR m in EUR m -535 -236 -1,735 -256 2014 2015 2014 2015 • Improvement in other result was biggest • Lower banking levies in Hungary and Slovakia contributor to bo
Slide 15: Pre-tax result and taxes on income – Massive turn-around
Business performance: pre-tax result and taxes on income – Massive turn-around in pre-tax result Pre-tax result Taxes on income in EUR m in EUR m 1,639 -364 -728 -521 2014 2015 2014 2015 • Low risk costs and improved other result drive • Tax rate is at 22.2% in 2015 pre-tax result into positive terr
Slide 16: Net result and dividend – Dividend reinstated at EUR 0.5 per share
Business performance: net result and dividend – Dividend reinstated at EUR 0.5 per share Net result Dividend in EUR m in EUR 968 0.5 -1,383 0.0 2014 2015 2014 2015 • Payout ratio equates 22.2% Page 16
Slide 17: Regulatory capital position – CET1 ratio 12.3%
Business performance: regulatory capital position – Capital build continues at fast pace in 2015, resulting in 12.3% in CET1 ratio Regulatory capital (EUR bn) Risk-weighted assets (EUR bn) Capital ratios (in %) 17.6 100.6 17.9 98.3 15.8 3.2 2.8 15.7 10.3 10.8 5.4 12.3 12.3 5.2 10.6 10.6 87.1 84.7 12
Slide 18: Q1 16 performance summary – Deposit insurance fees, lower revenues weigh
Q1 16 performance summary – Upfront booking of deposit insurance fees, lower revenues weigh on operating result Operating revenues Operating expenses Operating result in EUR m in EUR m in EUR m -3.5% 1,689 1,629 72 57 44 50 +6.4% -16.3% 461 443 1,009 741 948 113 110 620 281 334 1,099 1,092 554 565 1
Slide 19: Q1 16 performance summary – Net profit advances by 22%
Q1 16 performance summary – Net profit advances by 22% in Q1 16 Risk costs Other result Net result in EUR m in EUR m in EUR m -69.2% 183 +21.7% 275 226 56 -143 -137 1-3 15 1-3 16 1-3 15 1-3 16 1-3 15 1-3 16 • Risk costs plummet due to • Other result includes full-year • Net profit rises resulting in
Slide 20: Q1 16 performance summary – Volume growth and asset quality improvement
Q1 16 performance summary – Volume growth paired with continued asset quality improvement Customer loans (net) Customer deposits NPL ratio +0.7% in EUR m +0.5% in EUR m 125,897 126,740 127,946 128,640 7.1% 6.7% 31/12/15 31/03/16 31/12/15 31/03/16 31/12/15 31/03/16 • Customer loan growth mainly • Con
Slide 21: Share price performance – up 50.3% in 2015
in EUR 15 20 25 30 35 30/12/14 30/01/15 28/02/15 31/03/15 Share price performance – 30/04/15 31/05/15 30/06/15 31/07/15 31/08/15 30/09/15 31/10/15 30/11/15 31/12/15 31/01/16 29/02/16 Improving performance increasingly reflected in share price, up 50.3% in 2015 31/03/16 30/04/16 Page 21
Slide 22: Conclusion – Outlook 2016
Conclusion – Outlook 2016 • CEE economic environment anticipated to be conducive to credit expansion • Real GDP growth of between 1.5-4.1% expected in 2016 in all major CEE markets, including Austria • Real GDP growth to be driven by solid domestic demand • Return on tangible equity (ROTE) expected
Slide 23: Thank you for your attention!
Thank you for your attention! Page
Slide 24: Agenda Items – Friedrich Rödler
Agenda Items Friedrich Rödler Chairman of the supervisory board Page
Slide 25: Second item on the agenda: Appropriation of the profit
Second item on the agenda Appropriation of the profit Page 25
Slide 26: Third item: Grant of discharge to the management board
Third item on the agenda Grant of discharge to the members of the management board Page 26
Slide 27: Fourth item: Grant of discharge to the supervisory board
Fourth item on the agenda Grant of discharge to the members of the supervisory board Page 27
Slide 28: Fifth item: Remuneration of the supervisory board
Fifth item on the agenda Resolution on the remuneration of the members of the supervisory board Page 28
Slide 29: Sixth item: Appointment of an additional auditor
Sixth item on the agenda Appointment of an additional auditor Page 29
Slide 30: Seventh item: Amendments of the articles of association
Seventh item on the agenda Amendments of the articles of association Page 30
Slide 31: 23rd Annual General Meeting – Q&A
23rd Annual General Meeting Erste Group Bank AG Q&A Page
Slide 32: 23rd Annual General Meeting – Resolutions
23rd Annual General Meeting Erste Group Bank AG Resolutions Page
Slide 33: Second item on the agenda: Appropriation of the profit
Second item on the agenda Appropriation of the profit Page 33
Slide 34: Third item: Grant of discharge to the management board
Third item on the agenda Grant of discharge to the members of the management board Page 34
Slide 35: Fourth item: Grant of discharge to the supervisory board
Fourth item on the agenda Grant of discharge to the members of the supervisory board Page 35
Slide 36: Fifth item: Remuneration of the supervisory board
Fifth item on the agenda Resolution on the remuneration of the members of the supervisory board Page 36
Slide 37: Sixth item: Appointment of an additional auditor
Sixth item on the agenda Appointment of an additional auditor Page 37
Slide 38: Seventh item: Amendments of the articles of association
Seventh item on the agenda Amendments of the articles of association Page 38
Slide 39: Thank you for your active participation!
23rd Annual General Meeting Erste Group Bank AG Thank you for your active participation! Page