Erste Group Bank Ag · VIE:EBS
Erste Group Bank — H1 2008 Earnings Presentation
70 slides from Erste Group Bank's earnings presentation, Jul 30, 2008
Slide 1: Erste Group – H1 08 results presentation
ERSTE GROUP Erste Group – H1 08 results presentation 30 July 2008, Vienna Strong operating performance continues in Q2 2008 Andreas Treichl, CEO Bernhard Spalt, CRO
Slide 2: Disclaimer – Cautionary note regarding forward-looking statements
Disclaimer – Cautionary note regarding forward-looking statements ERSTE GROUP 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
Slide 3: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix NB: • As a result of the planned sale of the insurance business and of two other investments in Romania, the profit and loss statement (the previous “Income
Slide 4: H1 08 financial highlights – Executive summary
H1 08 financial highlights – Executive summary ERSTE GROUP Operating profit growth remains at high levels - up 25.3% in H1 08 Supported by record operating income in Q2 08 (EUR 1,774m) on 9.8% higher CEE contribution Sustained growth of Romanian economy supports performance of BCR 2008 and 2009 prof
Slide 5: H1 08 financial highlights – Operating performance remains strong
H1 08 financial highlights – Operating performance remains strong ERSTE GROUP Net profit up 12.5% yoy to EUR 636.6m Cash earnings per share * Strong operating performance offsetting impact of difficult market environment 2.5 2.10 NIM on interest bearing assets (IBA) at 2.7% 2.0 1.89 2.03 up from 2.5
Slide 6: H1 08 divisional highlights – Sustained strong contribution from CEE
H1 08 divisional highlights – Sustained strong contribution from CEE ERSTE GROUP Austria Operating result per segment * Savings banks up marginally on weak Q2 08 NII in EUR million 1-6 08 1-6 07 Change Austria 533.4 536.9 (0.7%) R&M mainly down on weaker SBs results; own branches strongly improved q
Slide 7: H1 P&L highlights – Revenues continue to grow quarter on quarter
H1 08 P&L highlights – Revenues continue to grow quarter on quarter ERSTE GROUP Operating income improved qoq (+ 2.5%) Net profit per quarter Stable NII (+0.3% qoq) mainly due to decline at savings banks Margins remained stable and loans as well as deposits showed 400 solid growth Fee income improve
Slide 8: H1 08 balance sheet highlights – Strong expansion of customer business
H1 08 balance sheet highlights – Strong expansion of customer business ERSTE GROUP Balance sheet structure - assets Balance sheet structure - liabilities 100% 100% Other assets Shareholder‘s equity Intangible assets Minority interests 80% 80% Assets held for sale and discontinued operations Subordin
Slide 9: H1 08 balance sheet highlights – Stable loan to deposit ratio
H1 08 balance sheet highlights – Stable loan to deposit ratio – not exceeding 115% ERSTE GROUP Loan vs deposit development 110% 114% 112% 140 107% 107% 120% 122 114 109 120 100 100% 97 91 in EUR billion 100 80 80% 80 73 68 71 60% 60 40 40% 20 20% 0 0% 2004 2005 2006 2007 Jun 08 Loans and advances to
Slide 10: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix H1 08 results Analyst presentation & conference call 30 July 2008 10
Slide 11: Key topics: Macro outlook for CEE – Still very healthy overall
Key topics: Macro outlook for CEE – Still very healthy overall ERSTE GROUP Real GDP growth outlook for CEE Inflation outlook for CEE 8% 30% 25% 6% 20% 4% 15% 10% 2% 5% 0% 0% Czech Romania Slovakia Hungary Croatia Serbia Ukraine Czech Romania Slovakia Hungary Croatia Serbia Ukraine Rep Rep 2008 2009
Slide 12: Key topics: Romania – Macro indicators show positive trends in H1 08
Key topics: Romania – Macro indicators show positive trends in H1 08 ERSTE GROUP Current account deficit forecasts revised substantially downward for 2008/09 Currently Erste Group expects CA deficit of 13.7% of GDP in 2008, down from 13.9% in 2007 (1-5 2008 deficit: EUR 6.5 billion) Financing of def
Slide 13: Key topics: Romania – Positive macro data points in H1
Key topics: Romania – Positive macro data points in H1 08 ERSTE GROUP GDP development FDI vs trade and current account balance 8 7.9% 9% 7.0% 7.6 15% in EUR thousand 6.0% 6.0% 9.4% 6 6.4 10% 6.5% 5.8% 5.7% 6% 4.6% 4.2% 5.6 5% as of GDP 4 4.5 0% 3.7 3% 2 -5% -8.7% -10.4% -10% -14.0% -13.7% -12.5% 0 0
Slide 14: Key topics: Romania – BCR: performance in line with plan
Key topics: Romania – BCR: performance in line with plan ERSTE GROUP Net profit stood at EUR 206.6m at H1 08 Net interest margin 63.5% increase based on local consolidated results Supported by strong growth of NII and fee income 6.7% 7% 6.4% Cost growth of 8.9% due to network expansion and 5.5% 6% 5
Slide 15: Key topics: Romania – BCR: loan book trends
Key topics: Romania – BCR: loan book trends ERSTE GROUP Market loan growth * Retail loan vs deposit structure by currency 210 80% 169.0 176.6 30 180 24.8 151.8 21.6 60% in RON billion in RON billion 150 132.2 66% 63% 8.2 120 111.8 55% 55% 20 46% 40% 11.0 90 60 10 20% 16.6 30 10.6 0 0% 0 Jun 07 Sep 0
Slide 16: Key topics: ABS/CDO portfolio – No deterioration of underlying assets
Key topics: ABS/CDO portfolio – H1 08 – No deterioration of underlying assets ERSTE GROUP Total face value of ABS/CDO exposure ABS & CDO exposure development* (including redemptions and reinvestments) declined by EUR 321m since YE 2007 - 4.9% 4,000 - 2.9% Including redemptions of EUR 51m in Q2 08 3,
Slide 17: Key topics: ABS/CDO portfolio – Detailed portfolio analysis
Key topics: ABS/CDO portfolio – Detailed portfolio analysis ERSTE GROUP Unchanged quality of portfolio ABS/CDO portfolio by ratings (June 2008)* Ratings remain stable to improving in EUR m Face Value Market Value +/-% % of total (market value) Investments mainly in amortising structures AAA 950 885
Slide 18: Key topics: Asset quality and risk costs – NPL coverage remained at comfortable levels
Key topics: Asset quality and risk costs – NPL coverage remained at comfortable levels ERSTE GROUP Low risk Mgmt attention Substandard Non-performing Total exposure Risk provisions NPL coverage Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Austria
Slide 19: Key topics: Asset quality and risk costs – Risk costs development in detail
Key topics: Asset quality and risk costs – Risk costs development in detail ERSTE GROUP - Risk provisions increased by 60.5% to EUR 394.1m from EUR 239.3m at H1 07 mainly driven by: - Total Group - Unwinding effect EUR 29.8m does not impact bottom line - Austria - One-off effect in the Savings Banks
Slide 20: Key topics: Asset quality and risk costs – Non performing loans in detail
Key topics: Asset quality and risk costs – Non performing loans in detail ERSTE GROUP NPL ratio1 remained stable qoq at 2.4%, slightly up on 2.2% at YE 07 Austria: increase exclusively due to higher NPLs in SBs segment based on stricter BIS II classification NPLs in Erste Bank’s Austrian business de
Slide 21: Key topics: Funding – Improved outlook for 2008 funding costs
Key topics: Funding – Improved outlook for 2008 funding costs ERSTE GROUP Forecast for 2008 long-term funding needs of EUR 5-6bn has been revised to max EUR 5bn Successful strategy to put more emphasis on deposit collection supported by strong client base and large branch network Stronger than expec
Slide 22: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix H1 08 results Analyst presentation & conference call 30 July 2008 22
Slide 23: Outlook – Erste confirms guidance
Outlook – Erste confirms guidance ERSTE GROUP Outlook for FY 2008 confirmed after first 6 months Excluding proceeds from sale of insurance business; closing expected in Q3 08 Capital ratio expected to strengthen Tier 1 ratio expected to be well above 8% in 2009 after 6.9% at H1 2008 2008: > 20% Net
Slide 24: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix H1 08 results Analyst presentation & conference call 30 July 2008 24
Slide 25: Group income statement (IFRS) – Sustainable CIR improvement to 57.1%
Group income statement (IFRS) – Sustainable CIR improvement to 57.1% ERSTE GROUP in EUR million 1-6 08 1-6 07 Change Net interest income 2,306.0 1,857.5 24.1% Risk provisions for loans and advances (384.1) (239.3) 60.5% Net fee and commission income 1,002.2 884.9 13.3% Net trading result 184.4 219.6
Slide 26: Group balance sheet (IFRS) – Loan growth in line with expectations
Group balance sheet (IFRS)* – Loan growth in line with expectations ERSTE GROUP in EUR million Jun 08 Dec 07 Change Cash and balances with central banks 6,854 7,615 (10.0%) Loans and advances to credit institutions 19,253 14,937 28.9% Loans and advances to customers 121,684 113,956 6.8% Risk provisi
Slide 27: Group balance sheet (IFRS) – Loan/deposit ratio at 112% on solid deposit growth
Group balance sheet (IFRS)* – Loan/deposit ratio at 112% on solid deposit growth ERSTE GROUP in EUR million Jun 08 Dec 07 Change Deposits by banks 35,915 35,165 2.1% Customer accounts 108,842 100,116 8.7% Debt securities in issue 30,770 31,078 (1.0%) Trading liabilities 2,575 1,756 46.6% Underwritin
Slide 28: Core segments – CEE contribution increased to 81% of net profit
Core segments* – CEE contribution increased to 81% of net profit ERSTE GROUP Austria CEE Int'l Business Corp. Center Total in EUR million 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 Net interest income 906.5 807.2 1,335.5 989.5 83.3 73.6 (19.3) (12.8) 2,306.0 1,857.5 Risk p
Slide 29: Core segment – Austria: Customer business shows resilient performance
Core segment – Austria Customer business shows resilient performance ERSTE GROUP Savings Banks Retail & Mortgage Large Corporates Treasury & IB Austria in EUR million 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 Net interest income 461.0 420.0 290.6 272.6 111.7 83.0 43.2 31.
Slide 30: Core segment – Central and Eastern Europe (1)
Core segment – Central and Eastern Europe (1) Continuing strong performance of CEE subsidiaries … ERSTE GROUP Czech Republic Romania Slovakia Hungary in EUR million 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 Net interest income 533.1 387.0 380.8 256.1 164.4 145.5 137.8 116.1 Risk provis
Slide 31: Core segment – Central and Eastern Europe (2)
Core segment – Central and Eastern Europe (2) … reflected in 41% higher net profit contribution ERSTE GROUP Croatia Serbia Ukraine CEE in EUR million 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 1-6 08 1-6 07 Net interest income 92.5 74.2 14.6 7.0 12.3 3.6 1,335.5 989.5 Risk provisions (10.7) (5.9) (2.
Slide 32: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix Segment reporting (details) Asset quality (details) ABS portfolio (details) CEE local statements Quarterly results H1 08 results Analyst presentation & conf
Slide 33: Austria/Savings Banks – H1 08 highlights
Austria/Savings Banks – H1 08 highlights ERSTE GROUP Operating result marginally up 1.1% Excluding contribution from 6 additional SBs, Savings Banks 1-6 08 1-6 07 Change operating result was down by 9.6% yoy Operating income 667.6 623.5 7.1% Weak Q2 08 NII and higher costs qoq (+2.8%) Operating expe
Slide 34: Austria/Retail and Mortgage – H1 08 highlights
Austria/Retail and Mortgage – H1 08 highlights ERSTE GROUP Net profit slightly improved by 0.6% yoy Q2 continued to record strong NII (up 6.6% yoy / down Retail & Mortgage 1-6 08 1-6 07 Change 2.5% qoq) offsetting slower fee income (down 11.0% yoy / unchanged qoq) Operating income 467.4 476.5 (1.9%)
Slide 35: Austria/Retail and Mortgage – Branches and SME sub-segments improved
Austria/Retail and Mortgage – Branches and SME sub-segments improved ERSTE GROUP Operating result (EUR m) Net profit (EUR m) 65.6 1-6 07 1-6 08 56.5 1-6 07 1-6 08 34.6 31.7 36.0 26.3 28.3 22.2 21.322.1 17.9 11.6 13.815.4 14.9 10.7 11.8 7.9 6.0 4.2 Branches SME Own SBs Mortgage Subsidiaries Branches
Slide 36: Austria/Large Corporates – H1 08 highlights
Austria/Large Corporates – H1 08 highlights ERSTE GROUP Net profit improved by 8.2% Strong operating performance continued from Q1 08 Large Corporates 1-6 08 1-6 07 Change Operating result up 28.2% yoy; leasing subsidiary Operating income 164.9 129.5 27.3% Immorent contributed about 60% to operating
Slide 37: Austria/Treasury & Investment Banking – H1 08 highlights
Austria/Treasury & Investment Banking – H1 08 highlights ERSTE GROUP Net profit contribution decreased by 44.8% yoy Operating result down 25.4% yoy on exceptionally Treasury & IB 1-6 08 1-6 07 Change strong Q1 07, but up 70% qoq Operating income 134.2 158.0 (15.1%) NII declines by 37.0% yoy (up 78.7
Slide 38: CEE/Czech Republic – H1 08 highlights
CEE/Czech Republic – H1 08 highlights ERSTE GROUP Net profit contribution accelerated to +42.9% (28.7%)* Operating result continued to improve – up 55.4% (39.8%) Czech Republic 1-6 08 1-6 07 Change NII up 37.7% (24.0%) yoy – + 5.1% qoq Driven by 18% yoy loan growth (retail mortgages up 20% yoy), Ope
Slide 39: CEE/Romania – H1 08 highlights
CEE/Romania – H1 08 highlights ERSTE GROUP Net profit contribution strongly up by 50.7% (66.6%)* Supported by strong growth of operating result by 65.1% Romania 1-6 08 1-6 07 Change (+82.5%) due to continued transformation progress NII increased by 48.7% yoy (64.4%) Operating income 547.8 426.8 28.3
Slide 40: CEE/Slovakia – H1 08 highlights
CEE/Slovakia – H1 08 highlights ERSTE GROUP Net profit contribution improved by 7.6% (+1.5%)* Operating result grew by 23.9% yoy (16.9%) up 15% qoq Slovakia 1-6 08 1-6 07 Change NII grew further by 13.0% (6.6%) yoy Operating income 236.8 200.9 17.9% Solid underlying loan growth (retail loans up 21%
Slide 41: CEE/Hungary – H1 08 highlights
CEE/Hungary – H1 08 highlights ERSTE GROUP Net profit contribution improved by 18.7%* Operating profit up 30.6% Adjusted for NII accrual correction of EUR 8m1 in Q1 07 Hungary 1-6 08 1-6 07 Change increase was 18% Operating income 225.9 195.8 15.4% NII increased by 18.7% Operating expenses (125.2) (
Slide 42: CEE/Croatia – H1 08 highlights
CEE/Croatia – H1 08 highlights ERSTE GROUP Net profit contribution up 27.3%* H1 08 performance still positively impacted by first Croatia 1-6 08 1-6 07 Change time consolidation of Diners Club Adriatic, Croatia (DCA) in April 07 Operating income 142.1 105.6 34.6% Operating expenses (66.6) (53.8) 24.
Slide 43: CEE/Serbia – H1 08 highlights
CEE/Serbia – H1 08 highlights ERSTE GROUP Net profit contribution up by EUR 5.7m Continued positive trend in operating performance Serbia 1-6 08 1-6 07 Change NII doubled to EUR 14.6m Operating income 19.2 9.9 94.8% Customer loans grew by 60% yoy and deposits Operating expenses (16.3) (13.5) 21.2% i
Slide 44: CEE/Ukraine – H1 08 highlights
CEE/Ukraine – H1 08 highlights ERSTE GROUP Expansion of operations continues in a more challenging market environment Ukraine 1-6 08 1-6 07 Change Development programme covering 12 specific Operating income 17.9 3.9 >100.0% projects in progress as planned Number of branches stood at 98 at H1 08; Ope
Slide 45: Core segments Int'l Business and Corp. Center – H1 08 highlights
Core segments Int’l Business and Corp. Center – H1 08 highlights ERSTE GROUP International Business Corporate Center Continued strong performance of operating result and NII and risk provisions impacted by allocation of reporting net profit ytd change according to IAS 39 (unwinding) for H1 08 to the
Slide 46: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix Segment reporting (details) Asset quality (details) ABS portfolio (details) CEE local statements Quarterly results H1 08 results Analyst presentation & conf
Slide 47: Key topics: Overview of international exposures – Credit risk by regions
Key topics: Overview of international exposures – Credit risk by regions* ERSTE GROUP Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Share of total Share of total Core market 144,142 128,152 18,97
Slide 48: Key topics: Overview of international exposures – Credit risk by industry sectors
Key topics: Overview of international exposures – Credit risk by industry sectors* ERSTE GROUP Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Jun 08 Dec 07 Share of total Share of total Banking and insurance 50
Slide 49: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix Segment reporting (details) Asset quality (details) ABS portfolio (details) CEE local statements Quarterly results H1 08 results Analyst presentation & conf
Slide 50: Key topics: ABS/CDO portfolio – Details on ABS portfolio
Key topics: ABS/CDO portfolio – Details on ABS portfolio ERSTE GROUP Erste Group has no exposure to US RMBS ABS portfolio by ratings (June 2008)* and US CMBS in EUR m +/-% % of total Face Value Market Value (market value) AAA 275 263 (4.2%) 16.6% Criteria for RMBS investments AA 494 465 (5.8%) 29.3%
Slide 51: Key topics: ABS/CDO portfolio – Details on CDO portfolio
Key topics: ABS/CDO portfolio – Details on CDO portfolio ERSTE GROUP Cash CLOs with strong corporate fundamental value make up 82% of portfolio CDO portfolio by products (June 2008)* 65% of US CLOs are AAA rated in EUR m Face Value Market Value +/-% % of total (market value) Remainder is minimum A C
Slide 52: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix Segment reporting (details) Asset quality (details) ABS portfolio (details) CEE local statements Quarterly results H1 08 results Analyst presentation & conf
Slide 53: Summary financials of CEE subsidiaries – Results as reported by local entities
Summary financials of CEE subsidiaries – Results (IFRS) as reported by local entities* ERSTE GROUP 97.99% 69.17% 100.00% 99.94% in EUR million 1-6 08 1-6 07 Change 1-6 08 1-6 07 Change 1-6 08 1-6 07 Change 1-6 08 1-6 07 Change Net profit after minorities 260.2 206.2 26.2% 206.6 126.4 63.5% 73.0 70.1
Slide 54: Financials (IFRS) of CEE subsidiaries – Česká spořitelna
Financials (IFRS) of CEE subsidiaries – Qeská spoSitelna * ERSTE GROUP in EUR million 1-6 08 1-6 07 Change Net interest income 566.3 455.9 24.2% Risk provisions for loans and advances (57.5) (36.3) 58.5% Net fee and commission income 211.1 187.9 12.3% Net trading result 48.4 27.6 75.3% General admin
Slide 55: Financials (IFRS) of CEE subsidiaries – Banca Comercială Română
Financials (IFRS) of CEE subsidiaries – Banca ComercialT RomânT (post restruct. costs) * ERSTE GROUP in EUR million 1-6 08 1-6 07 Change Net interest income 390.6 240.0 62.8% Risk provisions for loans and advances (74.0) (26.6) >100,0% Net fee and commission income 134.2 95.3 40.8% Net trading resul
Slide 56: Financials (IFRS) of CEE subsidiaries – Slovenská sporiteľňa
Financials (IFRS) of CEE subsidiaries – Slovenská sporiteVWa * ERSTE GROUP in EUR million 1-6 08 1-6 07 Change Net interest income 172.5 158.7 8.7% Risk provisions for loans and advances (24.8) (17.3) 43.3% Net fee and commission income 54.0 48.7 10.8% Net trading result 18.5 10.0 84.6% General admi
Slide 57: Financials (IFRS) of CEE subsidiaries – Erste Bank Hungary
Financials (IFRS) of CEE subsidiaries – Erste Bank Hungary * ERSTE GROUP in EUR million 1-6 08 1-6 07 Change Net interest income 143.8 119.3 20.6% Risk provisions for loans and advances (29.9) (21.9) 36.4% Net fee and commission income 68.4 59.0 15.9% Net trading result 19.7 20.2 (2.2%) General admi
Slide 58: Financials (IFRS) of CEE subsidiaries – Erste Bank Croatia
Financials (IFRS) of CEE subsidiaries – Erste Bank Croatia * ERSTE GROUP in EUR million 1-6 08 1-6 07 Change Net interest income 91.0 76.6 18.7% Risk provisions for loans and advances (9.3) (6.2) 51.1% Net fee and commission income 27.0 22.2 21.5% Net trading result 9.8 2.8 >100,0% General administr
Slide 59: Financials (IFRS) of CEE subsidiaries – Erste Bank Serbia
Financials (IFRS) of CEE subsidiaries – Erste Bank Serbia * ERSTE GROUP in EUR million 1-6 08 1-6 07 Change Net interest income 16.2 7.7 >100,0% Risk provisions for loans and advances (2.9) (0.3) >100,0% Net fee and commission income 3.4 2.1 61.5% Net trading result 1.1 0.7 67.5% General administrat
Slide 60: Financials (IFRS) of CEE subsidiaries – Erste Bank Ukraine
Financials (IFRS) of CEE subsidiaries – Erste Bank Ukraine * ERSTE GROUP in EUR million 1-6 08 1-6 07 Change Net interest income 24.2 5.9 >100.0% Risk provisions for loans and advances (2.3) (2.5) (6.4%) Net fee and commission income 1.6 0.2 >100.0% Net trading result 4.1 2.2 85.9% General administr
Slide 61: Presentation topics
Presentation topics ERSTE GROUP Summary and H1 2008 highlights H1 2008 key topics Outlook and targets Financials and segment reporting Appendix Segment reporting (details) Asset quality (details) ABS portfolio (details) CEE local statements Quarterly results H1 08 results Analyst presentation & conf
Slide 62: Erste Group historic financials – Quarterly income statement (IFRS)
Erste Group historic financials – Quarterly income statement (IFRS) ERSTE GROUP in EUR million Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Net interest income 779.7 927.8 903.7 953.8 986.6 1,101.7 1,151.1 1,154.9 Net fee and commission income 338.8 409.4 438.9 446.0 469.3 503.7 491.9 510.3 Net t
Slide 63: Erste Group historic financials – Quarterly balance sheet (IFRS)
Erste Group historic financials – Quarterly balance sheet (IFRS) ERSTE GROUP in EUR million Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Cash and balances with central banks 2,355 7,378 6,861 6,753 7,311 7,615 7,783 6,854 Loans and advances to credit institutions 18,307 16,616 20,877 21,4
Slide 64: Quarterly segment reporting – Overview of core segments
Quarterly segment reporting – Overview of core segments ERSTE GROUP in EUR million Austria Central and Eastern Europe Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Net interest income 408.2 412.6 429.6 477.1 429.4 516.0 548.7 602.0 637.6 698.0 Risk provisions (66.1) (72.2) (7.0) (71.4)
Slide 65: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments ERSTE GROUP in EUR million Savings Banks Retail & Mortgage Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Net interest income 213.5 221.6 223.0 258.0 203.0 136.0 135.7 144.5 147.1 143.5 Risk provisions (39.5) (42.9) 29.3 (37.2) (73.4) (
Slide 66: Quarterly segment reporting – Central and Eastern Europe sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) ERSTE GROUP in EUR million Czech Republic Romania Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Net interest income 195.2 214.4 233.4 259.9 273.1 136.7 143.6 168.5 180.4 200.5 Risk provisions (18.3) (16.6) (21.4)
Slide 67: Quarterly segment reporting – Central and Eastern Europe sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) ERSTE GROUP in EUR million Croatia Serbia Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Net interest income 40.3 41.1 44.0 43.5 49.0 3.4 4.6 4.6 6.0 8.7 Risk provisions (3.5) (5.8) (6.1) (4.4) (6.4) 0.3 0.8 (0.4)
Slide 68: Group capital adequacy – Tier 1 and solvency ratios within target ranges
Group capital adequacy* – Tier 1 and solvency ratios within target ranges ERSTE GROUP in EUR million 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Jun 08 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 7,090 Total own funds pursuant t
Slide 69: Shareholder structure – Total number of shares: 317,011,863
Shareholder structure – Total number of shares: 317,011,863 ERSTE GROUP By investor By region Austria Verein Continental Others Capital 5.0% Europe 2.4% Research 5.0% DIE ERSTE 13.7% österreichische Spar-Casse Privatstiftung 31.1% UK & Ireland 13.5% Austria 54.1% Institutional investors Employees 41
Slide 70: Investor relations contacts
Investor relations contacts ERSTE GROUP Erste Bank, Graben 21, 1010 Vienna Fax +43 (0)5 0100-13112 E-mail: investor.relations@erstebank.at Internet: www.erstebank.com Reuters: ERST.VI Bloomberg: EBS AV Datastream: O:ERS ISIN: AT0000652011 Investor relations Gabriele Werzer Tel: +43 (0)5 0100-11286 e