Erste Group Bank Ag · VIE:EBS
Erste Group Bank — H1 2011 Earnings Presentation
83 slides from Erste Group Bank's earnings presentation, Jul 29, 2011
Slide 1: Erste Group – H1 2011 results presentation
Erste Group – H1 2011 results presentation 29 July 2011, Vienna Accelerating operating performance provides a platform for 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: H1 2011 executive summary
H1 2011 executive summary – Solid net profit despite challenging banking environment − Accelerating operating performance in Q2 11 − Q2 11 operating result benefited from record NII and stable qoq costs − H1 2011 operating income up to EUR 3,893.4m on solid performance of all line items − H1 2011 op
Slide 4: Presentation topics
Presentation topics * − Business snapshot and operating environment − H1 2011 financial highlights − H1 2011 key topics − H1 2011 financials and segment reporting − Appendix *) The following tables and texts may contain rounding differences. 29 July 2011 H1 2011 Results Vienna 4 Conference Call
Slide 5: Retail market leadership in the eastern part of the EU
Erste Group – Retail market leadership in the eastern part of the EU Erste Group Slovakia Czech Republic Clients: 2.4m The leading retail bank with 16.9 m customers Clients: 5.2m Retail loans: 25.9% One of the leading corporate banks Retail loans: 25.2% Retail dep.: 26.6% Retail dep.: 28.7% Branches
Slide 6: Operating environment: macro trends
Operating environment: macro trends – What happened in CEE in Q2 2011? − Continued strong exports have boosted Capacity utilisation capacity utilisation − Full recovery in manufacturing expected to be achieved 90% after slump in 2009 85% − Increase in investment expenditures likely in order to meet
Slide 7: Operating environment: macro outlook
Operating environment: macro outlook – CEE to grow much ahead of euro zone average − CEE to experience different growth patterns in line with levels of export dependency and Real GDP growth in CEE 8 2011 euro zone avg. country-specific issues 6 4.0 4.0 3.0 − AT: to build on solid 2010 performance 2.
Slide 8: Presentation topics
Presentation topics − Business snapshot and operating environment − H1 2011 financial highlights − H1 2011 key topics − H1 2011 financials and segment reporting − Appendix 29 July 2011 H1 2011 Results Vienna 8 Conference Call
Slide 9: Net profit and EPS up yoy
Net profit and EPS up yoy – Despite headwinds from banking tax and valuations − Net profit grew by 5.2% yoy to EUR 496.3m, Cash earnings per share* driven by declining risk costs and solid 2.5 operating result 2.10 1.89 − Other operating result was a negative EUR 260.2m, 2.0 2.03 1.82 profoundly imp
Slide 10: Operating income up strongly qoq, flat yoy
Operating income up strongly qoq, flat yoy – Sequential improvement driven by net interest income − Operating income up 3.1% qoq, flat yoy in H1 2011 − NII flat yoy in H1 2011, qoq increase of 7.6% broadly based across all segments except Romania − Net commission income declined by 1.0% to EUR 954.9
Slide 11: Operating costs flat qoq, slightly up yoy
Operating costs flat qoq, slightly up yoy – Yoy increase in H1 2011 well below inflation rate − Operating expenses flat qoq, up by only 1.5% yoy in H1 2011 − Personnel expenses increased by 4.7% (+4.0% FX-adjusted) yoy in H1 2011 on severance payments in Czech Republic and full consolidation of an I
Slide 12: Operating result up qoq, slightly down yoy
Operating result up qoq, slightly down yoy – Czech & Slovak results offset Romanian performance Quarterly operating result YTD operating result (in EUR million) (in EUR million) 1,991 1,967 1,776 178 160 1,008 1,037 1,014 1,491 342 960 954 285 278 63 81 65 67 95 204 140 152 149 267 119 129 1,170 212
Slide 13: Key operating indicators develop well
Key operating indicators develop well – Cost/income ratio and NIM both improve qoq Quarterly cost income ratio Quarterly net interest margin* 49.6% 50.2% 48.4% 48.4% 48.7% 3.14% 3.05% 3.03% 3.05% 2.88% Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 YTD cost income ratio YTD net interest
Slide 14: Presentation topics
Presentation topics − Business snapshot and operating environment − H1 2011 financial highlights − H1 2011 key topics − H1 2011 financials and segment reporting − Appendix 29 July 2011 H1 2011 Results Vienna 14 Conference Call
Slide 15: Customer deposit review
Customer deposit review – Deposit growth continued to outpace loan growth − Customer deposits grew by 3.2% in H1 11 (+1.4% qoq) − In Q2, visible inflows especially in EBOe and in HU Customer deposit trends by main segments 116.6 115.3 117.0 119.2 120.8 − Retail & SME deposits increased by 1.9% ytd 1
Slide 16: Loan book review
Loan book review – Loan demand still to recover across segments − Customer loans increased by 1.0% ytd; up 0.9% qoq − Retail & SME segment growth mainly driven by currency Customer loans by main segments * movements (EUR/CZK, EUR/CHF, CHF/HUF) 150 132.7 132.8 134.1 − Private individual portfolios in
Slide 17: Asset quality review – Group trends
Asset quality review – Group trends: NPL formation down yoy − NPL growth driven by Romania and Hungary Erste Group: NPL ratio vs NPL coverage − Increase of new NPL formation amounted to EUR 323 m in Q2 11 due to lower NPL sales of EUR 126m 30% 65% and new defaults in SME/real estate business 25% 60.
Slide 18: Asset quality review – Segment round-up
Asset quality review – Segment round-up: Austria excelled, CEE still mixed − Retail & SME/Austria: NPL ratio down, NPL NPL ratios in key segments coverage ratio up − Continuously decreasing substandard and non- 20% 19.2% performing loans since mid 2010 15.5% − NPL coverage ratio at 61.4% 15% − Impro
Slide 19: Asset quality review – Risk costs
Asset quality review – Risk costs decreased by 13.3% yoy in H1 11 − Risk costs down from 169 bps in H1 2010 to Risk costs in key segments 141 bps in H1 2011, but slightly up qoq due to further derisking of international portfolio 6% 4.05% 3.97% 4% − Risk costs on group level mainly driven by default
Slide 20: Net exposure to selected euro zone countries
Asset quality review – Net exposure to selected euro zone countries Total net exposure of Erste Group (excluding savings banks) to selected European countries: in EUR million Sovereign Bank Other Total net exposure Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Greece 626.1 404.7 172.0 138.
Slide 21: 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 111.0%
Slide 22: Erste Group's capital position – retained earnings
Erste Group’s capital position – Retained earnings drive capital growth − Total equity (IFRS) increased by EUR Total capital reconciliation 394m (+2.3%) ytd reflecting: 18 17.1 0.1 0.1 0.1 17.5 0.6 -0.4 -0.1 − Retained earnings of EUR 595m 16 in EUR billion 3.6 3.5 − Incremental positive effects fro
Slide 23: Erste Group's capital position – conservative asset mix
Erste Group’s capital position – Strong capital position and conservative asset mix Core tier 1 ratio Core tier 1 ratio excl. part capital Credit RWA as percentage (total risk) (total risk) of customer loans 9.5% 9.2% 8.3% 8.0% 77.4% 7.7% 6.9% Total RWA as percentage of total assets 55.9% Dec 09 Dec
Slide 24: Conclusion – Outlook
Conclusion – Outlook − CEE economies set to continue economic recovery in H2 2011 − All of Erste Group’s CEE markets are expected to post GDP growth in 2011 − Austria, Czech Republic and Slovakia to perform well, banking markets to grow − Romania and Hungary also growing 2011, but banking markets st
Slide 25: Presentation topics
Presentation topics − Business snapshot and operating environment − H1 2011 financial highlights − H1 2011 key topics − H1 2011 financials and segment reporting − Appendix 29 July 2011 H1 2011 Results Vienna 25 Conference Call
Slide 26: Group income statement (IFRS)
Group income statement (IFRS) – Net profit up by 5.2% yoy in EUR million 1-6 11 1-6 10 Change Q2 11 Q1 11 Q2 10 Net interest income 2,689.8 2,684.8 0.2% 1,394.1 1,295.7 1,361.2 Risk provisions for loans and advances (940.0) (1,084.2) (13.3%) (479.9) (460.1) (553.0) Net fee and commission income 954.
Slide 27: Group balance sheet (IFRS) – assets
Group balance sheet (IFRS) – Loan-to-deposit ratio improved further to 111.0% in EUR million Jun 11 Dec 10 Change Cash and balances with central banks 6,605 5,839 13.1% Loans and advances to credit institutions 13,373 12,496 7.0% Loans and advances to customers 134,078 132,729 1.0% Risk provisions f
Slide 28: Group balance sheet (IFRS) – liabilities
Group balance sheet (IFRS) – Balance sheet growth driven by deposits and own issues in EUR million Jun 11 Dec 10 Change Deposits by banks 23,324 20,154 15.7% Customer deposits 120,817 117,016 3.2% Debt securities in issue 32,566 31,298 4.1% Derivative financial instruments 7,033 7,996 (12.0%) Tradin
Slide 29: Segment review – Core segments
Segment review – Core segments Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 1-6 11 1-6 10 1-6 11 1-6 10 1-6 11 1-6 10 1-6 11 1-6 10 1-6 11 1-6 10 Net interest income 2,312.8 2,290.5 259.7 293.0 65.6 56.8 51.7 44.5 2,689.8 2,684.8 Risk provisions for loans and advances
Slide 30: Core segment – Austria
Core segment – Austria Erste Bank Oesterreich drives improvement in Austria Savings banks EB Oesterreich Austria in EUR million 1-6 11 1-6 10 1-6 11 1-6 10 1-6 11 1-6 10 Net interest income 483.4 477.3 316.3 319.4 799.7 796.6 Risk provisions for loans and advances (123.1) (135.9) (65.2) (87.7) (188.
Slide 31: 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 1-6 11 1-6 10 1-6 11 1-6 10 1-6 11 1-6 10 1-6 11 1-6 10 Net interest income 590.0 536.1 354.9 415.2 221.3 209.5 189.1 185.9 Risk provisions for loans and a
Slide 32: Core segment Central and Eastern Europe (2)
Core segment Central and Eastern Europe (2) – … and risk cost levels across the region continued Croatia Serbia Ukraine CEE in EUR million 1-6 11 1-6 10 1-6 11 1-6 10 1-6 11 1-6 10 1-6 11 1-6 10 Net interest income 127.9 117.6 18.2 12.4 11.6 17.0 1,513.1 1,493.8 Risk provisions for loans and advance
Slide 33: Segment Retail & SME
Segment Retail & SME – Solid net profit on decline in risk costs − Operating result was nearly flat (+0.2% yoy) in H1 11 Segment operating performance but improved by 6.0% qoq on continued cost control and higher revenues 2,000 1,641 1,638 1,606 1,591 1,635 − Operating income improved by 0.9% yoy (+
Slide 34: 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 111.5 112.5 113.3 113.3 114.8 120 100% 2.3% 2.2% 2.2% 2.0% 2.0% 5.9 5.9 6.4 6.6 6.7 15.0% 14.6% 15.1% 14.3% 14.9% 90 80% in EUR billion 42.9
Slide 35: Segment GCIB
Segment GCIB – Decrease in risk costs led to improved net profit − At EUR 277.9m, operating result declined 2.6% yoy Segment operating performance − Operating income was down slightly (-1.4% yoy) − NII was down by 11.4% yoy to EUR 259.7m, driven by planned 187 197 196 portfolio decrease of EUR 1.8bn
Slide 36: 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% 4.1% 1.2% 4.0% 1.2% 3.9% 1.3% 3.7% 1.2% 3.7% 1.2% 5.3% 5.9% 4.9% 5.5% 5.7% 14.1% 11.8% 11.5% 10.2% 10.1% 80% in EUR billion 19.0 18.4 18.7 18.9 18.7 20 1.2 1
Slide 37: Segment Group Markets
Segment Group Markets – Solid results in difficult environment − Operating result decreased by 10.1% to EUR 160.2m Segment operating performance − NII increased 15.4% yoy on improved contribution from money market activities as a result of more favourable liquidity spreads − Fee income was down by 1
Slide 38: Segment Corporate Center
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 21 20 10 − Line-item analysis 0 in EUR million − NII substantially improved
Slide 39: Retail & SME: Austria/EB Oesterreich
Retail & SME: Austria/EB Oesterreich – ROE in H1 11 reached target on declining risk costs − Operating result decreased by 4.2% yoy to EUR Segment operating performance 185.6m (+10.1% qoq) − Strong qoq improvement in NII; ytd NII down by 1.0% to EUR 300 251 249 254 250 238 316.3m, mainly due to high
Slide 40: 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 26.8 26.9 27.4 27.1 27.5 100% 2.1% 2.0% 2.0% 1.8% 1.7% 1.7 1.7 15.8% 15.5% 16.0% 15.4% 16.0% 1.4 1.5 1.7 80% in EUR bi
Slide 41: Retail & SME: Austria/Savings banks
Retail & SME: Austria/Savings banks – NII & fees up in addition to decreasing risk costs − Operating result improved by 5.5% from EUR 226.0m Segment operating performance in H1 10 to EUR 238.4m in H1 11 400 356 347 349 345 362 − NII up by 1.3% yoy on improved margins and volumes − Fee income increas
Slide 42: 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 36.7 36.9 37.3 37.0 37.7 100% 3.3% 3.4% 3.3% 3.2% 3.2% 1.7 1.7 1.6 1.7 1.6 19.8% 19.5% 20.2% 19.2% 20.1% 80% 30 in EUR bi
Slide 43: Retail & SME: Czech Republic
Retail & SME: Czech Republic – Continued outstanding operating performance − Operating result improved by 13.5% (+7.1% FX- adjusted)1 yoy to EUR 487.2m Segment operating performance − NII strongly improved by 10.1% yoy (+3.9%); reflecting 500 424 419 425 429 393 improvement in asset mix and deposit
Slide 44: 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 17.9 17.5 18.0 18.1 100% 0.1% 0.2% 0.2% 0.2% 0.2% 17.1 0.8 3.5% 3.5% 3.9% 3.3% 3.3% 0.7 0.7 0.8 0.7 16 80% 5.4 5.5 in EUR bill
Slide 45: Retail & SME: Romania
Retail & SME: Romania – Strong capability to adapt to current market conditions − Operating result decreased by 26.0% yoy (-25.7% FX- Segment operating performance adjusted)1 to EUR 245.7m − NII down 14.5% (-14.1%) on lower margins, decreasing loan 350 300 275 demand, and increased competition on de
Slide 46: 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% 2.0% 1.8% 1.6% 1.4% 1.3% 12 11.2 11.2 11.2 11.3 11.1 80% in EUR billion 1.2 1.4 1.5 1.5 1.5 59.2% 59.5% 60.6% 60.1% 60.4% 9 60% 4.2 4.3 4.2 4.
Slide 47: Retail & SME: Slovakia
Retail & SME: Slovakia – Excellent half-year results on record NII & reduced risk − Operating result increased by 14.3% to EUR Segment operating performance 170.2m in H1 2011 − NII continued to improve: up 5.7% yoy to EUR 200 221.3m on the back of growing retail business; 134 134 142 138 141 150 qua
Slide 48: 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% 0.4% 0.4% 0.4% 0.4% 0.4% 5.6 5.7 5.7 5.8 5.9 80% 6 0.1 in EUR billion 0.1 0.1 0.1 0.1 1.5 1.4 1.4 1.4 1.5 60% 0.3 0.3 0.3 4 0.3 0.3 99.6% 99
Slide 49: Retail & SME: Hungary
Retail & SME: Hungary – Net result negatively impacted by banking tax − Operating result slightly deteriorated by -1.4% yoy Segment operating performance (-2.3% FX- adjusted)1 to EUR 143.3m 150 137 − NII rose by 1.7% yoy due to CHF strengthening and improved 126 127 120 125 deposit margins 100 77 83
Slide 50: 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% 0.5% 0.2% 0.2% 0.3% 0.1% 7.9 22.0% 20.8% 20.7% 19.7% 7.6 7.6 7.8 7.6 23.2% 8 0.4 0.4 0.4 80% 0.4 0.4 in EUR billion 2.3 2.3 6 2.3 2.3 2.3 60%
Slide 51: Retail & SME: Croatia
Retail & SME: Croatia – Solid operating result partly offset by higher risk costs − Operating result improved by 9.4% yoy (+11.3% FX- Segment operating performance adjusted)1 to EUR 97.4m − NII improved by 8.8% (+10.7%) on better margins and 100 83 87 86 82 88 increased volume in both retail and cor
Slide 52: 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 5.6 5.8 6 5.4 5.3 5.5 100% 0.1% 0.1% 0.2% 0.2% 0.2% 0.5 15.6% 15.3% 15.4% 14.1% 14.2% 0.4 0.3 0.4 0.5 80% in EUR billion 4 2.4 2.3 2.4 2.4 2.5 60% 61.
Slide 53: Retail & SME: Serbia
Retail & SME: Serbia Operating performance improved on loan growth − Operating result more than doubled to EUR 7.3m from Segment operating performance EUR 3.1m − NII increased by 46.4% (+49.7%) due to significant increased 15 13 11 12 11 loan volume as well as margin expansion 10 10 − Fee income imp
Slide 54: 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% 1.3% 1.1% 1.1% 1.0% 0.9% 4.7% 4.3% 4.4% 4.1% 4.1% 436.0 461.7 417.0 431.3 2.2 80% 391.5 in EUR million 2.3 2.2 2.3 400 5.7 60% 63.9% 67.8% 67.3%
Slide 55: Retail & SME: Ukraine
Retail & SME: Ukraine – Rightsizing still ongoing − Operating result declined to EUR -2.8m from EUR 2.2m Segment operating performance − NII decreased by 31.6% yoy (-28.9% FX adjusted1) on reduced loan portfolio and lower interest rate environment 20 14 14 − Net fee income improved by EUR 1.3m to EU
Slide 56: 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% 1.4% 1.5% 1.3% 1.4% 1.3% 600 560.5 80% in EUR million 0.0 72.9 492.3 486.3 0.0 0.0 443.7 441.1 124.4 64.3 71.8 0.0 0.0 60% 89.3% 86.2% 85.2%
Slide 57: Presentation topics
Presentation topics − Business snapshot and operating environment − H1 2011 financial highlights − H1 2011 key topics − H1 2011 financials and segment reporting − Appendix − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structure 29 July 2011 H1 2011
Slide 58: 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 59: 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 150 132.7 132.8 134.1 131.0 131.5 3.9% 5.6% 7.1 7.2 7.6 7.7 7.8 3.1% 120 2.9% 5.2% in EUR billion 39.3% 60.3 60.1 60.6 61.0 61.0 90 4.8% 60 13.7 13.6 13.5 13.4 13.4 5.0% 30 49.9
Slide 60: 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 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Retail & SME 82,029 81,200 18,864 1
Slide 61: 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 EUR million Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Share of total Share of total Core market 88,061 86,949 21,692 20,782 4,942 5,
Slide 62: 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 EUR million Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Jun 11 Dec 10 Share of total Share of total Agriculture and forestry 1,116 970 610 626 73 138 208 211 2,006
Slide 63: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (30 Jun 2011: EUR 37.3 bn) (30 Jun 2011: EUR 37.3 bn) 5.4% 2.9% 16.2% 24.4% 5.7% 2.7% 2.3% 5.3% 8.0% 19.7% 61.1% 6.0% 20.3% 9.9% 4.8% 5.3% AT CZ SK US DE HU RO IT GB Other EUR CZK USD HU
Slide 64: Presentation topics
Presentation topics − Business snapshot and operating environment − H1 2011 financial highlights − H1 2011 key topics − H1 2011 financials and segment reporting − Appendix − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structure 29 July 2011 H1 2011
Slide 65: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-6 11 1-6 10 Rate and margin environment Cost/income ratio 40.8% 42.2% Return on equity 19.7% 18.1% 80% 8% 65.7% 68.7% 68.6% 66.5% 67.3% Jun 11 Dec 10 Change Erste Group stake 97.99% Solvency ratio 14.5% 13.9% 60%
Slide 66: Key local entity data – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 1-6 11 1-6 10 Rate and margin environment Cost/income ratio 40.9% 32.9% 145.5% 145.1% Return on equity 4.4% 14.3% 150% 138.1% 137.4% 134.1% 15% Jun 11 Dec 10 Change Erste Group stake 69.17% 12% Solvency ratio 11.9% 13.0% 100% 7.
Slide 67: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 1-6 11 1-6 10 Rate and margin environment Cost/income ratio 38.2% 42.2% Return on equity 21.2% 14.7% 100% 8% Jun 11 Dec 10 Change 78.0% 77.3% 76.0% 74.5% 75.5% Erste Group stake 100.0% 80% Solvency ratio 14.2% 1
Slide 68: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-6 11 1-6 10 Rate and margin environment Cost/income ratio 40.5% 39.4% Return on equity n.a. 8.1% 270% 12% Jun 11 Dec 10 Change 192.3% 203.4% 203.1% 10% Erste Group stake 99.94% 177.6% 184.4% Solvency ratio 13.5%
Slide 69: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 1-6 11 1-6 10 Rate and margin environment Cost/income ratio 41.0% 39.6% 148.0% Return on equity 9.7% 9.9% 150% 131.3% 12% Jun 11 Dec 10 Change 121.6% 120.3% 123.2% Erste Group stake 69.25% 120% Solvency ratio 13.4
Slide 70: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 1-6 11 1-6 10 Rate and margin environment Cost/income ratio 68.0% 77.8% Return on equity 5.3% 0.0% 120% 103.8% 20% Jun 11 Dec 10 Change 96.1% 93.6% 94.8% 99.2% Erste Group stake 80.49% 100% Solvency ratio 18.3% 17.
Slide 71: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 1-6 11 1-6 10 Rate and margin environment Cost/income ratio 85.7% 68.2% Return on equity 0.8% na 600% 12% Jun 11 Dec 10 Change 477.2% 500% 10.8% 10% Erste Group stake 100.0% 405.1% Solvency ratio 23.8% 24.7% 358.3
Slide 72: Presentation topics
Presentation topics − Business snapshot and operating environment − H1 2010 financial highlights − H1 2010 key topics − H1 2010 financials and segment reporting − Appendix − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structure 29 July 2011 H1 2011
Slide 73: Erste Group historic financials – Quarterly income statement
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Net interest income 1,279.3 1,335.6 1,380.0 1,323.6 1,361.2 1,390.7 1,337.0 1,295.7 1,394.1 Net fee and commission income 443.6 425.1 459.5 471.5 493.5 475.7 495.3
Slide 74: Erste Group historic financials – Quarterly balance sheet
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Cash and balances with central banks 7,556 5,897 6,897 5,458 5,996 5,965 6,540 5,030 5,839 5,043 6,605 Loans and advances to credit institution
Slide 75: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME Group Corporate & Investment Banking Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Net interest income 1,161.3 1,169.4 1,134.0 1,128.9 1,183.9 145.4 152.5 128.7 127.6 132.1 Risk provisions (451.0) (487.
Slide 76: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Net interest income 160.4 162.4 162.6 150.3 166.0 246.8 235.2 228.9 229.8 253.6 Risk provisions (42.9) (36.5) (24.1) (35.0) (30.2) (70.6)
Slide 77: Quarterly segment reporting – CEE sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) in EUR million Czech Republic Romania Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Net interest income 271.6 274.7 276.4 284.4 305.6 202.0 206.6 176.8 186.0 168.9 Risk provisions (90.9) (96.0) (81.8) (70.9) (68.
Slide 78: Quarterly segment reporting – CEE sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Net interest income 61.5 65.2 65.1 61.3 66.6 6.4 7.6 7.5 8.6 9.6 Risk provisions (23.2) (30.3) (27.1) (23.2) (27.2) (2.5) (2.0) (1.6) (2
Slide 79: Presentation topics
Presentation topics − Business snapshot and operating environment − H1 2010 financial highlights − H1 2010 key topics − H1 2010 financials and segment reporting − Appendix − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and shareholder structure 29 July 2011 H1 2011
Slide 80: Group statistical data
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 2010 Jun 11 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 12,219 12,547 Tota
Slide 81: Operating performance history
Operating performance history Erste Group: operating income history 2,500 1,954 2,010 1,905 1,917 1,977 2,000 1,752 1,814 1,922 1,921 1,922 1,936 1,665 1,725 1,767 1,755 199 160 82 141 99 144 72 140 109 1,467 1,495 1,528 59 82 1 102 144 460 494 476 474 in EUR million 482 425 472 495 481 1,500 125 95
Slide 82: Shareholder structure
Shareholder structure – Total number of shares: 378,176,721 By investor By region Caixa Bank Other 10.1% 3.1% Continental 25.3% Europe 20.5% Employees Austria 2.0% 47.5% UK & Ireland Savings banks 8.0% 4.2% Institutional Retail investors investors 6.6% 51.8% North America 20.9% Free float: 64.6% Upd
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