Erste Group Bank Ag · VIE:EBS
Erste Group Bank — H1 2009 Earnings Presentation
74 slides from Erste Group Bank's earnings presentation, Jul 30, 2009
Slide 1: Erste Group – H1 09 results presentation
Erste Group – H1 09 results presentation 30 July 2009, Vienna Strong operating performance continues in Q2 09 Andreas Treichl, Chief Executive Officer Manfred Wimmer, Chief Financial Officer Bernhard Spalt, Chief Risk Officer Gabriele Werzer, Head of Investor Relations
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 CORRECTN
Slide 3: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix 30 July 2009 Teleconference Vienna 3 Q2 09
Slide 4: Erste Group – Overview of key facts
Erste Group – Overview of key facts Czech Republic Slovakia Ukraine Clients: 5.3m Retail loans: 29.0% Clients: 2.6m Clients: 0.1m Retail dep.: 30.9% Retail loans: 24.8% Retail loans: 1.7% Retail dep.: 28.5% Retail dep.: 0.2% Branches: 652 Branches: 271 Branches: 135 Austria Hungary Clients: 0.8m Cli
Slide 5: Erste Group – Overview of macro trends
Erste Group – Overview of macro trends CEE economies expected to contract in 2009 but intensity of macro pressure is easing Real GDP growth outlook for CEE GDP growth outlook remains challenging First signs of stabilisation emerging (e.g. in 9% 2.8% 2.4% 6% 2.1% 1.8% manufacturing), supported by glo
Slide 6: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix 30 July 2009 Teleconference Vienna 6 Q2 09
Slide 7: H1 financial highlights – Executive summary
H1 09 financial highlights – Executive summary Deterioration of macro environment continued both in Austria and the CEE region But support packages of EUR 55.3bn in total provided by the IMF and EU for the region with a stabilising effect and easing the pressure on CEE currencies Operating environme
Slide 8: Q2 financial highlights – Strong operating performance supported by GM division
Q2 09 financial highlights – Strong operating performance supported by GM division in EUR million 1-6 09 1-6 08 Change Q2 09 Q1 09 Q2 08 Retail & SME 1,295.4 1,227.1 5.6% 678.8 616.6 586.0 Austria 355.5 334.9 6.1% 166.1 189.4 137.8 EB Oesterreich 147.8 132.1 11.9% 76.2 71.6 67.3 Savings Banks 207.7
Slide 9: H1 financial highlights – Solid NII and strong trading result
H1 09 financial highlights – Solid NII and strong trading result - costs under control Operating income per quarter Operating expenses per quarter 2,400 1,200 1,037 1,052 1,922 948 976 984 1,767 1,755 1,752 1,814 1,000 95 95 1,900 199 92 88 91 102 1 144 in EUR million in EUR million 487 482 444 800
Slide 10: H1 financial highlights – Operating performance absorbing increased risk costs
H1 09 financial highlights – Operating performance absorbing increased risk costs Net profit decreased by 22.7% yoy reaching EUR Cash earnings per share * 492.1m (EUR 636.6m H1 08) Mainly due to 132.3% increase in risk costs (to EUR 892.1m) 2.5 partly offset by strong operating performance 2.10 2.0
Slide 11: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix 30 July 2009 Teleconference Vienna 11 Q2 09
Slide 12: Loan to deposit ratio – Supported by solid deposit growth
Loan to deposit ratio – Supported by solid deposit growth Loan vs deposit development 112% 114% 115% 113% 160 107% 120% 126 128 120 114 109 113 90% 97 91 100 in EUR billion 80 80 73 60% 40 table to be updated 30% 0 0% 2005 2006 2007 2008 Jun 09 Loans and advances to customers Customer deposits Loan/
Slide 13: Erste Group's loan book – Quarterly loan book trends by segment
Erste Group’s loan book – Quarterly loan book trends by segment Total customer loans increased by 5.2% yoy on Customer loans by main segments * continued low demand in first half of 2009 Low growth of 1.5% on YE 08 also impacted by strong decline 150 126 128 122 126 126 of all CEE currencies in Q1 0
Slide 14: Erste Group's customer deposits – Quarterly deposit trends by segment
Erste Group’s customer deposits – Quarterly deposit trends by segment Total customer deposits increased by 4.4% yoy Customer deposit trends by main segments * Deposit inflows and stabilising of CEE currencies in Q2 09 supported deposit growth 125 113 109 111 109 109 Retail & SME deposit growth of 5.
Slide 15: Erste Group's asset quality – Key developments in H1
Erste Group’s asset quality – Key developments in H1 09 Slight increase in total exposure by 3.3% ytd to EUR 222.8bn (YE 08: EUR 215.7 bn) Industry distribution of exposure remained well diversified with households and finance/insurance industries contributing the largest shares Asset quality varies
Slide 16: Erste Group's asset quality – Exposure overview
Erste Group’s asset quality – Exposure overview Exposure by industries Exposure by risk category (30 June 2009: EUR 222.8 bn) 250 222 227 223 11.1% 216 217 3.4% 5 6 8 22.7% 21 6 7 4.6% 200 21 28 26 28 in EUR billion 6.0% 150 100 191 195 178 175 178 7.4% 50 23.3% 11.6% 0 9.9% Finance/insurance Househ
Slide 17: Erste Group's asset quality – Non-performing loans and NPL coverage
Erste Group’s asset quality – Non-performing loans and NPL coverage Group NPL ratio vs group NPL coverage NPL distribution by segment (30 June 2009: EUR 8.1 bn) 4.0% 3.6% 100% 3.5% 3.3% 1.6% 12.1% 2.9% 80% 3.0% 2.8% 2.4% 2.5% 5.8% 36.1% 2.5% 60% 68.0% 65.5% 2.0% 61.6% 4.3% 58.3% 55.5% 1.5% 40% 1.0%
Slide 18: Erste Group's risk costs – Major risk cost drivers in H1 yoy
Erste Group‘s risk costs – Major risk cost drivers in H1 09 yoy (segment view) Incremental risk cost contribution analysis Rising unemployment and weakening of RON impacted (in EUR million) retail delinquencies in Q1 09. Continued decline of macro environment resulted in increase of SME defaults Rom
Slide 19: Erste Group's risk costs – Quarterly risk costs (segment view)
Erste Group’s risk costs – Quarterly risk costs (segment view) Risk costs in key segments Quarterly risk cost development (main segments) 4% 3.68% 600 522 500 469 in EUR million 3% 2.43% 400 370 1.85% 2.02% 2% 300 221 218 1.10% 200 427 0.87% 314 1% 268 100 185 179 0% 0 GCIB Austria Czech R Romania S
Slide 20: Erste Group's capital position – Regulatory capital versus equity
Erste Group’s capital position – Regulatory capital versus equity Total participation capital at EUR 1.760m Regulatory capital development (ABA) Republic of Austria has subscribed to EUR 1.22bn EUR 540m placed with institutional and private 20 10% 8.4% investors 7.8% 16 6.9% 7.2% 8% 6.6% 13.2 12.3 i
Slide 21: Conclusion – Remaining positive, but cautious
Conclusion – Remaining positive, but cautious Our core markets are EU-member states We are market leaders in all our core markets and thus have pricing power We are operating in underpenetrated retail banking markets We are operating in markets with floating currencies, converging towards the Euro N
Slide 22: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix 30 July 2009 Teleconference Vienna 22 Q2 09
Slide 23: Group income statement (IFRS) – Higher risk costs impact bottom line performance
Group income statement (IFRS) – Higher risk costs impact bottom line performance in EUR million 1-6 09 1-6 08 Change Q2 09 Q1 09 Q2 08 Net interest income 2,505.3 2,306.0 8.6% 1,279.3 1,226.0 1,154.9 Risk provisions for loans and advances (892.1) (384.1) >100.0% (521.9) (370.2) (221.0) Net fee and c
Slide 24: Group balance sheet (IFRS) – Slow loan growth – RWA driven by recalibration
Group balance sheet (IFRS) – Slow loan growth – RWA driven by recalibration in EUR million Jun 09 Dec 08 Change Cash and balances with central banks 6,897 7,556 (8.7%) Loans and advances to credit institutions 13,800 14,344 (3.8%) Loans and advances to customers 128,110 126,185 1.5% Risk provisions
Slide 25: Group balance sheet (IFRS) – Solid deposit growth
Group balance sheet (IFRS) – Solid deposit growth in EUR million Jun 09 Dec 08 Change Deposits by banks 29,776 34,672 (14.1%) Customer deposits 113,489 109,305 3.8% Debt securities in issue 30,130 30,483 (1.2%) Trading liabilities 2,690 2,519 6.8% Other provisions 1,681 1,620 3.8% Tax liabilities 30
Slide 26: Core segments – Group Markets division continues to outperform
Core segments – Group Markets division continues to outperform Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 1-6 09 1-6 08 1-6 09 1-6 08 1-6 09 1-6 08 1-6 09 1-6 08 1-6 09 1-6 08 Net interest income 2,145.9 2,034.8 268.1 216.8 123.1 110.1 (31.8) (55.7) 2,505.3 2,306.0 R
Slide 27: Core segment – Austria: Solid performance of Erste Bank Oesterreich
Core segment – Austria Solid performance of Erste Bank Oesterreich Savings Banks EB Oesterreich Austria in EUR million 1-6 09 1-6 08 1-6 09 1-6 08 1-6 09 1-6 08 Net interest income 455.6 461.0 319.6 291.2 775.2 752.2 Risk provisions (162.6) (110.7) (68.9) (50.1) (231.5) (160.7) Net fee and commissio
Slide 28: Core segment Central and Eastern Europe (1) – NII continues to improve in Q2 09
Core segment Central and Eastern Europe (1) – NII continues to improve in Q2 09 … Czech Republic Romania Slovakia Hungary in EUR million 1-6 09 1-6 08 1-6 09 1-6 08 1-6 09 1-6 08 1-6 09 1-6 08 Net interest income 520.7 511.7 383.9 356.7 175.1 160.6 159.8 135.0 Risk provisions (111.6) (48.9) (169.8)
Slide 29: Core segment Central and Eastern Europe (2) – bottom line impacted by rising risk costs
Core segment Central and Eastern Europe (2) – … but bottom line impacted by rising risk costs Croatia Serbia Ukraine CEE in EUR million 1-6 09 1-6 08 1-6 09 1-6 08 1-6 09 1-6 08 1-6 09 1-6 08 Net interest income 100.9 91.9 15.8 14.6 14.3 12.3 1,370.7 1,282.6 Risk provisions (24.0) (10.5) (4.0) (2.9)
Slide 30: Segment Retail & SME – Macro deterioration reflected in rising cost of risk
Segment Retail & SME – Macro deterioration reflected in rising cost of risk Retail & SME segment is the key profit contributor at Segment operating performance Erste Group Comprises retail, SME, local corporates, local ALM and local 2,000 1,544 1,584 1,488 1,450 1,521 corporate centers in Austria an
Slide 31: Segment GCIB – Strong operating performance - higher risk costs
Segment GCIB – Strong operating performance - higher risk costs Operating profit up 25.4% yoy (unchanged qoq) at Segment operating performance EUR 262.7m Revenues improved by 18.0% yoy driven by increase in NII 200 177 174 174 148 153 (+23.6% yoy) and stable fee income 130 131 131 150 106 112 Loan g
Slide 32: Segment Group Markets – Excellent performance continued in Q2 09
Segment Group Markets – Excellent performance continued in Q2 09 Operating result was up 67.7% yoy at EUR 342.0m, Segment operating performance improving by 3.9% on strong Q1 09 based on: Solid NII (+11.8% yoy and +10.8% qoq) driven by strong money 250 229 214 market operations, supported by steep y
Slide 33: Segment Corporate Center – Returning a normalised run-rate
Segment Corporate Center – Returning a normalised run-rate What is in the Corporate Center? Segment operating performance Business areas which cannot be allocated to relevant business lines, one-offs and Group ALM 0 -10 (2) -20 Line-item analysis (17) in EUR million -30 (24) NII substantially improv
Slide 34: Retail & SME: Austria – EB Oesterreich
Retail & SME: Austria – EB Oesterreich Operating result improved by 11.9% yoy (+6.4% qoq) Segment operating performance 17% ytd increase in deposits and 10% ytd loan growth at stable margins driving NII (up 9.8% yoy) to EUR 319.6m (+ 4.3% qoq) 300 Fee income declined as anticipated – (-11.1% yoy) bu
Slide 35: Retail & SME: Austria – Savings banks
Retail & SME: Austria – Savings banks Operating result improved marginally by 2.4% yoy but Segment operating performance was down 23.6% qoq due to: Decline in NII by 1.2% yoy and lower fee income (down 3.6% 500 yoy) driven by reduced securities transactions 370 350 400 306 334 326 Compensated by str
Slide 36: Retail & SME: Czech Republic – Strong performance in a difficult environment
Retail & SME: Czech Republic – Strong performance in a difficult environment Operating result improved strongly by 10.2% (+17.8%)1 yoy to EUR 395.5m driven by: Segment operating performance Solid improvement in NII: up 1.8% yoy (+8.8% FX adjusted) on 500 406 continued ability to compensate 2.25% low
Slide 37: Retail & SME: Romania – Solid operating result offset by higher risk costs
Retail & SME: Romania – Solid operating result offset by higher risk costs Operating result declined by 3.5% yoy (but was up Segment operating performance 10.4% FX adjusted)1 Resilient NII up 7.6% (23.2%) on strong 2008 loan growth and 300 261 258 246 232 235 improved margins. Loan growth has slowed
Slide 38: Retail & SME: Slovakia – Revenues impacted by interest rates and volumes
Retail & SME: Slovakia – Revenues impacted by interest rates and volumes Operating result declined by 4.2% (-10.3%)1 Segment operating performance Improved NII +9.1% yoy (+2.1%) but substantially up 13.5% qoq with lower interest rates offset by higher business volumes at 150 122 improved margins 118
Slide 39: Retail & SME: Hungary – Substantial improvement of operating performance
Retail & SME: Hungary – Substantial improvement of operating performance Operating result strongly improved by 13.4% Segment operating performance (+29.5%)1 yoy more than doubling qoq NII significantly increased by 18.4% ýoy (35.3%) backed by 150 127 strong loan growth in 2008 (avg customer loans in
Slide 40: Retail & SME: Croatia – Continued resilient operating performance
Retail & SME: Croatia – Continued resilient operating performance Operating result improved by 3.4% yoy (5.0%)1 to EUR 73.3m Segment operating performance Operating income up 3.7% yoy (+5.3%) 100 Solid NII +9.9% (+11.6%) despite continued strict regulation of 79 80 71 71 73 loan growth and increased
Slide 41: Retail & SME: Serbia – Improving operating performance
Retail & SME: Serbia Improving operating performance Operating result improved by >100% yoy to EUR 6.4m Segment operating performance in H1 09 despite 15% lower exchange rate 13 13 Operating income improved strongly by 14.7% yoy 15 11 11 11 (+32.0%)1 across all line items 10 Supported by strong NIM
Slide 42: Retail & SME: Ukraine – Scaling down the business
Retail & SME: Ukraine – Scaling down the business Operating result was negative at EUR -1.0m; but Segment operating performance improved compared to H1 08 Revenues increased by 0.9% yoy 43%)1on strong NII 20 16 Administrative expenses down by 25.3% yoy; but 15 11 11 11 increased by 6.2% currency adj
Slide 43: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder
Slide 44: Erste Group's long-term funding profile – 2009 funding completed
Erste Group’s long-term funding profile – 2009 funding completed Long Term Funding YTD 2009 Total funding needs for 2009 – estimated to be maximum EUR 5-7bn - already raised Possibility of issuing up to EUR 6bn of Government guaranteed bonds EUR 4bn already issued at around EURIBOR + 53-65bps and 90
Slide 45: Long-term funding in detail – Redemption profile
Long-term funding in detail – Only 1 year has redemptions exceeding EUR 4bn Redemption Profile of Erste Group 5.0 4.4 4.5 4 4.0 3.7 3.5 3.2 3.0 in EUR bn 2.5 2.5 2.0 1.7 1.4 1.3 1.3 1.2 1.5 1.0 0.5 0.7 0.3 0.3 0.5 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022+ Senior unse
Slide 46: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder
Slide 47: Key topics: ABS/CDO portfolio – Prices stabilised but ratings migrated downward
Key topics: ABS/CDO portfolio Prices stabilised but ratings migrated downward Face value of ABS/CDO exposure declined by EUR 131m since YE 08 Redemptions of EUR 137m in H2 09 partly offset by currency effects Upgrades of EUR 115m vs downgrades of EUR 626m Downgrades mainly through methodology change
Slide 48: Key topics: ABS/CDO portfolio – Detailed portfolio analysis
Key topics: ABS/CDO portfolio Detailed portfolio analysis ABS/CDO portfolio by region June 2009)* CDO portfolio by products June 2009)* % of total % of total in EUR m Face Value Market Value +/-% in EUR m Face Value Market Value +/-% (market value) (market value) USA 936 574 (38.7%) 37.0% Cash CLOs
Slide 49: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder
Slide 50: Asset quality – Key definitions
Asset quality – Key definitions Exposure is a measure of the entire credit risk Risk category Agency ratings of Erste Group, covering: Loans and advances to customers and banks Low risk AAA to BB / Fixed income securities in all portfolios (trading, Aaa to Ba fair value, available for sale, held to
Slide 51: Asset quality – Credit risk by segments
Asset quality – Credit risk by segments * Low risk Mgmt attention Substandard Non-performing Total exposure Risk provisions NPL coverage NPL ratio Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Retail & SME 120,004 118,606 22,168 19,93
Slide 52: Asset quality – Credit risk by regions
Asset quality – Credit risk by regions * Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Share of total Share of total Core market 137,801 138,299 25,450 23,354 7,170 5,418 7,213 5,719 177,634 79.7
Slide 53: Asset quality – Credit risk by industry sectors
Asset quality – Credit risk by industry sectors * Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Jun 09 Dec 08 Share of total Share of total Agriculture and forestry 1,092 1,139 668 588 139 156 143 138 2,041 0.
Slide 54: Asset quality – Group loan book
Asset quality – Group loan book Customer loans by Basel II customer segments Customer loans by risk classes 150 150 126.2 126.3 128.1 126.2 126.3 128.1 6.0 5.9 6.1 5.9 6.6 7.6 120 120 4.3 5.9 5.6 in EUR billion in EUR billion 20.0 22.4 23.7 90 60.7 60.8 61.4 90 60 13.1 13.4 13.7 60 96.0 91.4 91.2 30
Slide 55: Asset quality – Financial assets
Asset quality – Financial assets Financial assets by country of origination Financial assets by currency (30 June 2009: EUR 35.1 bn) (30 June 2009: EUR 35.1 bn) 3.5% 3.6% 2.6% 23.2% 22.8% 9.9% 4.1% 14.0% 17.0% 63.3% 6.5% 7.2% 7.9% 8.8% AT CZ SK DE US IT HU RO GB Other EUR CZK USD HUF RON Other Finan
Slide 56: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder
Slide 57: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-6 09 1-6 08 Change Rate and margin environment Cost/income ratio 42.5% 47.3% (10.3% ) Return on equity 19.9% 22.9% Net interest margin 4.2% 3.9% 6.1% 80% 71.4% 70.3% 70.9% 8% 67.3% 67.5% Jun 09 Dec 08 Change Loan/
Slide 58: Key local entity data – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 1-6 09 1-6 08 Change Cost/income ratio 39.5% 41.5% (4.8% ) Rate and margin environment Return on equity 18.8% 30.4% 0.0% 148.4% 139.2% 144.4% 143.1% Net interest margin 6.8% 6.7% 2.6% 150% 133.4% 15% Jun 09 Dec 08 Change Loan/de
Slide 59: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 1-6 09 1-6 08 Change Cost/income ratio 55.8% 51.5% 8.3% Rate and margin environment Return on equity 7.6% 21.1% 0.0% Net interest margin 3.8% 4.1% (7.3% ) 71.3% 74.6% 80% 70.5% 70.5% 8% Jun 09 Dec 08 Change 66.7
Slide 60: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-6 09 1-6 08 Change Rate and margin environment Cost/income ratio 47.0% 53.9% (12.9% ) Return on equity 20.3% 21.5% 247.4% Net interest margin 4.1% 3.9% 4.4% 270% 12% 204.5% 212.9% 216.2% Jun 09 Dec 08 Change 10%
Slide 61: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 1-6 09 1-6 08 Change Rate and margin environment Cost/income ratio 41.8% 43.0% (2.8% ) Return on equity 13.2% 16.5% 118.4% 120% 107.0% 107.9% 110.2% 12% Net interest margin 3.4% 3.5% (2.3% ) 100.9% Jun 09 Dec 08 C
Slide 62: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 1-6 09 1-6 08 Change Rate and margin environment Cost/income ratio 70.6% 78.5% (10.0% ) Return on equity 3.3% 9.4% 18.8% Net interest margin 7.3% 7.3% (0.1% ) 140% 17.6% 20% 16.3% 16.2% Jun 09 Dec 08 Change 120% 14
Slide 63: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 1-6 09 1-6 08 Change Rate and margin environment Cost/income ratio 73.7% 75.5% (2.8% ) Return on equity na na 23.8% Net interest margin 6.7% 9.5% (2.4% ) 2000% 1774.7% 1748.6% 25% Jun 09 Dec 08 Change 17.1% 1373.6
Slide 64: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder
Slide 65: Erste Group historic financials – Quarterly income statement (IFRS)
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Net interest income 986.6 1,101.7 1,151.1 1,154.9 1,267.3 1,339.8 1,226.0 1,279.3 Net fee and commission income 469.3 503.7 491.9 510.3 486.8 482.1 444.6 443.6 Net tradi
Slide 66: Erste Group historic financials – Quarterly balance sheet (IFRS)
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Cash and balances with central banks 7,311 7,615 7,783 6,854 7,692 7,556 5,897 6,897 Loans and advances to credit institutions 21,261 14,937 15,938 19,253 19,088 14
Slide 67: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME Group Corporate & Investment Banking Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Net interest income 1,020.4 1,108.4 1,171.9 1,070.0 1,075.9 110.3 113.0 130.8 136.6 131.5 Risk provisions (184.8) (178.
Slide 68: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Net interest income 143.6 154.3 171.8 156.4 163.2 203.0 241.8 271.4 239.2 216.3 Risk provisions (25.2) (23.6) (18.8) (34.1) (34.8) (73.4)
Slide 69: Quarterly segment reporting – Central and Eastern Europe sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) in EUR million Czech Republic Romania Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Net interest income 262.6 282.5 298.6 264.6 256.1 190.1 185.8 199.1 193.2 190.7 Risk provisions (27.0) (29.4) (38.3) (37.0) (74.
Slide 70: Quarterly segment reporting – Central and Eastern Europe sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Net interest income 48.4 52.4 49.4 47.6 53.3 8.7 9.5 9.3 7.7 8.1 Risk provisions (6.4) (5.3) (8.8) (8.1) (15.9) (0.8) (1.4) (2.4) (1.4)
Slide 71: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and H1 2009 highlights H1 2009 key topics H1 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder
Slide 72: Group capital adequacy – Tier 1 and solvency ratios within target ranges
Group capital adequacy* – Tier 1 and solvency ratios within target ranges in EUR million 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Jun 09 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 9,038 Total own funds pursuant to A
Slide 73: Shareholder structure – Total number of shares: 317,925,086
Shareholder structure – Total number of shares: 317,925,086 By investor By region Austria Verein >5.0% Others Criteria Caixa Continental Europe 2.5% Corp 5.1% 14.6% 31.0% UK & Ireland 11.9% Institutional Austria investors 56.7% 39.1% Employees 3.9% North America Savings banks 14.3% 9.3% Private inve
Slide 74: 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 Gabriele Werzer Tel: +43 (0)5 0100-11286 e