Erste Group Bank Ag · VIE:EBS
Erste Group Bank — FY2006 Earnings Presentation
27 slides from Erste Group Bank's earnings presentation, Feb 28, 2007
Slide 1: Balance sheet press conference
Balance sheet press conference February 28, 2007
Slide 2: Erste Bank Group
Erste Bank Group 95% of Erste Bank 15.9m customers are citizens of the EU Customers: 2.5m; #1 Retail deposits: 32% Customers: 5.3m; #1 Retail loans: 25% Retail deposits: 33% Branches: 271 Retail loans: 32% Branches: 637 Customers: 0.9m; #2 Retail deposits: 6% Retail loans: 9% Customers: 0.6m; # 2 Br
Slide 3: Strong lending growth (by region)
Strong lending growth (by region) Growth in Central Europe +68.2% Rising demand for personal and residential loans leads to strong loan growth in Central Europe Moderate growth in Austria based on retail and residential volume increases Customer loans by regions (in Customer loans in Central EUR bil
Slide 4: Strong growth in deposits (by region)
Strong growth in deposits (by region) Growth in Central Europe +48.3% Strong growth in deposits in Central Europe Customer deposits by region (in Customer deposits in Central EUR billions) Europe (in EUR billions) 39.3 90.9 .3% 8% + 48 +24. 72.8 7,268 39,251 26.5 129 3,002 26,476 82 3,197 2,302 2,79
Slide 5: Financial highlights 2006
Financial highlights 2006 » Net profit up 30.1% to EUR 932.2 million (2005: EUR Earningsper Earnings pershare share(cash) * 716.7 million) (cash)* » Rise of 20.2% to EUR 904.5 million excl. BCR 3.5 3.14 2.98 » Total assets up by 19.0% to EUR 181.7 billion 3.0 3.10 » Increase of 8.4% excl. BCR 2.5 2.
Slide 6: Overview of key figures
Overview of key figures Net interest income + 14.1% to EUR 3,189.3 million Net commission income + 15.0% to EUR 1,445.9 million Operating income + 14.3% to EUR 4,948.9 million General and + 10.3% to EUR 2,945.3 million administrative expenses Operating result + 20.7% to EUR 2,003.6 million Pre-tax p
Slide 7: Overview of key figures
Overview of key figures Net profit after tax + 30.1% to EUR 932.2 million Total assets + 19.0 % to EUR 181.7 billion Core capital ratio 6.6 % Dec. 2005: 6.8 % February 28, 2007 7
Slide 8: Operating result – segmental level detail
Operating result – segmental level detail in EUR million 2006 2005 Chg. Austria 984.0 922.6 6.6% Joint liability scheme 406.0 394.7 2.9% Retail & residential 279.9 254.3 10.1% Own branches 106.0 95.0 11.6% SMEs 27.4 26.3 4.1% Own Savings Bank 69.9 61.7 13.3% Residential 39.8 32.0 24.2% Major custome
Slide 9: Development in Central Europe
Development in Central Europe Local net earnings 2006 (IFRS) *) 97.99% 69.15% 100.00% in EUR million 2006 2005 Chg. 2006 2005 Chg. 2006 2005 Chg. Consolidated net profit 366.7 322.5 13.7% 214.5**) 184.3 16.4% 103.9 96.1 8.1% Return on equity 23.0% 22.3% 18.8% 17.6% 20.3% 19.3% Cost/income ratio 53.7
Slide 10: Development in Central Europe
Development in Central Europe Local net earnings 2006 (IFRS) 99.94% 64.94% 99.99% in EUR million 2006 2005 Chg. 2006 2005 Chg. 2006 2005 Chg. Consolidated net profit 88.4 71.5 23.6% 56.0 47.5 17.9% -28.3 -7.5 >100.0% Return on equity 25.2% 26.2% 18.7% 20.2% -- -- Cost/income ratio 54.8% 57.4% 50.7%
Slide 11: Erste Bank Group Balance sheet and income statement 2006
Erste Bank Group Balance sheet and income statement 2006
Slide 12: Balance sheet
Balance sheet in EUR million Change ASSETS 31.12.2006 31.12.2005 in % Loans and advances to credit 16,616 16,858 -1.4 institutions Loans and advances to customers 97,107 80,419 20.8 Risk provisions for loans and advances -3,133 -2,817 11.2 Trading and financial assets 42,497 39,455 7.7 Other assets
Slide 13: Balance sheet (assets)
Balance sheet (assets) in EUR million 200,000 180,000 18,154 7,329 9,664 160,000 7,280 8,883 7,066 140,000 10,089 42,497 9,807 6,125 42,091 120,000 9,788 4,989 39,455 4,290 35,071 100,000 27,217 32,873 80,000 97,107 89,479 60,000 72,843 80,419 64,435 67,766 40,000 20,000 15,492 13,140 15,684 16,858
Slide 14: Balance sheet
Balance sheet in EUR million Change LIABILITIES AND SHAREHOLDERS' EQUITY 31.12.2006 31.12.2005 in % Amounts owed to credit institutions 37,688 33,911 11.1 Amounts owed to customers 90,849 72,793 24.8 Debts evidenced by certificates 21,814 21,291 2.5 Other liabilities 15,238 14,016 8.7 Subordinated c
Slide 15: Balance sheet (liabilities and shareholders' equity)
Balance sheet (liabilities and shareholders' equity) in EUR million 200,000 180,000 26,142 160,000 24,727 20,375 27,024 140,000 19,632 25,780 17,550 25,581 120,000 15,912 23,416 17,577 20,482 100,000 90,863 80,000 72,793 83,595 64,839 68,213 60,000 61,308 40,000 28,551 33,911 37,688 31,427 20,000 26
Slide 16: 2006 income statement according to IFRS
2006 income statement according to IFRS in EUR million Change 1.-12.2006 1.-12.2005 in % I. Net interest income 3,189.3 2,794.2 14.1 Risk provisions for loans and advances -439.1 -421,6 4.2 Net commission income 1,445.9 1,256.8 15.0 Net trading result 277.9 241.7 15.0 General and administrative expe
Slide 17: Operating result & consolidated net profit
Operating result & consolidated net profit in EUR million 2,500.0 1,913 2,000.0 1,659 1,454 1,370 1,500.0 1,151 932 905 1,000.0 717 521 500.0 353 255 0.0 2002 2003 2004 2005 2006 2006 adapted incl. BCR excl. BCR Operating result Consolidated net profit February 28, 2007 17
Slide 18: Divisional results – core segments
Divisional results – core segments Result increased in all core segments CEE share of consolidated net profit 60.5% (2005: 61.0%) Cost/income ratio reduced in almost all segments Operating revenues General admin. expense Net profit after tax and minorities (in EUR million) (in EUR million) (in EUR m
Slide 19: Retail & residential - details
Retail & residential - details Retail and residential - improved results in all divisions Operating earnings Net profit (in EUR million) (in EUR million) 106.0 95.0 48.7 69.9 35 61.7 31.8 27.3 25.6 23.6 39.8 39.7 37.4 32.0 15.5 26.3 27.4 13.5 4.4 2.7 Filialen KMU Own Eigene Wohnbau Mortgage Sonstige
Slide 20: Segmental reporting
Segmental reporting Austria CEE Int. business Corp. Center Total in EUR million 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 Net interest income 1,592.9 1,583.9 1,444.3 1,104.6 149.0 149.6 3.2 -43.9 3,189.4 2,794.2 Risk provisions -312.7 -351.3 -126.9 -80.2 2.1 10.2 -1.5 -0.2 -439.1 -421.6 Net
Slide 21: Segmental reporting - Austria
Segmental reporting - Austria Joint liability Retail & Major Trading & IB Austria scheme residential customers in EUR million 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 Net interest income 839.7 841.2 537.3 524.6 147.6 140.2 68.3 78.0 1.592.9 1.583.9 Risk provisions -171.3 -215.8 -88.1 -105.1
Slide 22: Segmental reporting - Central and Eastern Europe
Segmental reporting - Central and Eastern Europe Czech Rumania Slovakia Hungary Croatia Serbia Republic in EUR million 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 Net interest income 705.6 583.5 127.8 0.0 239.5 197.3 251.2 219.0 111.1 101.9 9.2 3.0 Risk provisions -52.5 -33.7 -8.2 0.
Slide 23: Share price development: Erste Bank, DJ Euro Stoxx Bank and ATX
Share price development: Erste Bank DJ Euro Stoxx Bank and ATX (indexed) Share price developm ent: Erste Bank, DJ Euro Stoxx Bank Index and ATX (indexed) 130 Erste Bank share 120 DJ Euro Stoxx Banks Index 110 Austrian Traded Index (ATX) 100 90 80 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 06 06
Slide 24: Market capitalisation of Erste Bank
Market capitalisation of Erste Bank Market capitalisation rises in 2006 to EUR 18.3 billion in EUR billions 20 18.3 18 16 14 12 11.44 10 9.49 8 5.87 6 3.84 4 3.01 2.03 2.02 2.42 1.95 2 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 February 28, 2007 24
Slide 25: Erste Bank Group – outlook and objectives
Erste Bank Group – outlook and objectives On average exceeding 20% p.a. Consolidated net profit(1) for 2005-2009 Cost/income ratio 2009: below 55 % Return on equity(2) 2009: 18-20% 1) Profit after taxes and minority interests 2) Based on a core capital ratio of at least 7% February 28, 2007 25
Slide 26: Shareholder structure
Shareholder structure By investor groups By regions Austria Insurance Capital Association Other Research and 4.9% Continental 2.5% Mgm t. Europe DIE ERSTE österreichische Spar- 14.4% 5.0% Casse Privatstiftung 30.6% UK & Ireland 14.0% Institutionals Em ployees 41.8% 3.0% Sparkassen North America 6.9%
Slide 27: 8 countries – 15.9 million customers – one banking group
8 countries – 15.9 million customers – one banking group Croatia Hungary Serbia Ukraine Austria Czech Republic Slovakia Rumania February 28, 2007 27