Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q3 2009 Earnings Presentation
86 slides from Erste Group Bank's earnings presentation, Oct 30, 2009
Slide 1: Erste Group – 1-9 09 results presentation
Erste Group – 1-9 09 results presentation 30 October 2009, Vienna Record operating performance in first nine months 2009 Andreas Treichl, Chief Executive 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 CORRECTN
Slide 3: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix 30 October 2009 Teleconference Vienna 3 Results 1-9 09
Slide 4: Erste Group in the region – Overview of key facts
Erste Group in the region – Overview of key facts Czech Republic Slovakia Ukraine Clients: 5.3m Retail loans: 28.5% Clients: 2.6m Clients: 0.1m Retail dep.: 30.4% Retail loans: 25.0% Retail loans: 1.7% Retail dep.: 28.6% Retail dep.: 0.2% Branches: 655 Branches: 276 Branches: 135 Austria Hungary Cli
Slide 5: Continued growth potential – CEE economies expected to recover in 2010
Continued growth potential – CEE economies expected to recover in 2010 CEE economies expected to contract in Real GDP outlook for CEE 2009 but intensity of macro pressure is 7.1% easing 6.4% 10% 2.7% 2.4% First signs of stabilisation, supported by global 1.7% 5% 0.6% 0.5% 0.9% 1.0% 1.5% 0.5% stabili
Slide 6: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix 30 October 2009 Teleconference Vienna 6 Results 1-9 09
Slide 7: 1-9 09 financial highlights – Executive summary
1-9 09 financial highlights – Executive summary Erste Group’s strong performance continued with a record operating result of EUR 2,776.9m in the first nine month 2009 Operating result increased by 26.6% compared to 1-9 08 – supported by a 7.8% increase in revenues and a substantial decline in admini
Slide 8: Record operating performance in almost all key segments
1-9 09 financial highlights – Record operating performance in almost all key segments in EUR million 1-9 09 1-9 08 Change Q3 09 Q2 09 Q3 08 Retail & SME 2,068.4 1,861.0 11.1% 773.0 678.8 633.9 Austria 552.1 500.3 10.3% 196.6 166.1 165.4 EB Oesterreich 235.5 195.8 20.3% 87.7 76.2 63.7 Savings Banks 3
Slide 9: Continued support from solid NII & net trading result
1-9 09 financial highlights – Continued support from solid NII & net trading result Operating income per quarter Operating expenses per quarter 2,400 1,200 1,052 1,922 1,921 948 976 984 1,755 1,752 1,814 1,000 95 920 1,900 199 160 92 88 91 in EUR million 1 144 in EUR million 93 487 482 444 425 800 3
Slide 10: Strong operating performance mitigating higher risk costs
1-9 09 financial highlights – Strong operating performance mitigating higher risk costs Net profit on an adjusted bases (for the sale of the insurance business) declined by 16.4% to EUR 720.1m Cash earnings per share * Compared to reported EUR 1,463.0m decline was 50.8% Decline due to significant in
Slide 11: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix 30 October 2009 Teleconference Vienna 11 Results 1-9 09
Slide 12: Erste Group's loan book – Quarterly loan book trends by segment
Erste Group’s loan book – Quarterly loan book trends by segment Customer loans increased by 3.4% yoy inline with Customer loans by main segments * continued slow demand since Q4 08 Loan growth increased moderately in Q3 09 up 1.4% qoq 150 126 126 126 128 130 Growth rates were also impacted by strong
Slide 13: 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 2.1% yoy Customer deposit trends by main segments * Continued inflows and stabilising of CEE currencies supported deposit growth 125 113 113 111 109 109 Retail & SME deposit growth of 4.9% yoy
Slide 14: Risk profile benefits from business mix – NPL formation and coverage
Risk profile benefits from business mix – Deceleration of NPL formation and improved coverage NPL growth slowed down in Q3 09 Erste Group: NPL ratio vs NPL coverage NPL ratio rose by 40 bps to 6.3% compared to rise of 70 bps in Q2 09 on the back of slowing new NPL formation in CEE and a decline in N
Slide 15: Erste Group's loan book – Prudent lending criteria and risk mitigating factors
Erste Group’s loan book – Prudent lending criteria and risk mitigating factors Retail portfolio dominated by secured loans Low average LTV´s in CEE retail leave cushion for potential further decline in property prices Around 60% in Hungary and Romania - including currency depreciation High collatera
Slide 16: 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 4.1% 5.9% 126.2 126.3 128.1 130.0 3.2% 6.0 5.9 6.1 6.7 3.3% 120 5.2% 37.3% in EUR billion 90 60.7 60.8 61.4 61.6 4.7% 60 13.1 13.4 13.7 13.8 30 5.8% 46.4 46.2 47.0 47.8 7.
Slide 17: 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) 6% 5.42% 600 557 522 5% 500 469 70 in EUR million 66 4% 3.46% 400 370 3.17% 120 3% 300 80 218 1.77% 427 452 2% 200 18 1.20% 314 0.57% 268 1% 100 179 0% 0 GCIB Aus
Slide 18: Erste Group's capital position
Erste Group’s capital position – Regulatory capital versus equity Total participation capital at EUR 1.76bn Key capital ratios Republic of Austria has subscribed to EUR 1.22bn EUR 540m placed with institutional and private 10.0% investors 8.6% Tier 1 ratio (credit risk) at 8.6% 8.0% 7.2% 7.0% 7.2% a
Slide 19: Conclusion – Improved capital ratio allows to leverage the franchise
Conclusion – Improved capital ratio allows to leverage the franchise Our key strengths… Leading market positions in retail and SME banking Proven and resilient business model Well-known brand Continued growth potential … and our strategic focus… Business focus on retail and SME banking Geographic fo
Slide 20: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix 30 October 2009 Teleconference Vienna 20 Results 1-9 09
Slide 21: Group income statement (IFRS) – Cost/income ratio improves to historic low
Group income statement (IFRS) – Cost/income ratio improves to historic low in EUR million 1-9 09 1-9 08 Change Q3 09 Q2 09 Q3 08 Net interest income 3,840.9 3,573.3 7.5% 1,335.6 1,279.3 1,267.3 Risk provisions for loans and advances (1,449.2) (602.3) >100.0% (557.1) (521.9) (218.2) Net fee and commi
Slide 22: Group balance sheet (IFRS) – Moderate loan growth continues
Group balance sheet (IFRS) – Moderate loan growth continues in EUR million Sep 09 Dec 08 Change Cash and balances with central banks 5,458 7,556 (27.8%) Loans and advances to credit institutions 13,938 14,344 (2.8%) Loans and advances to customers 129,954 126,185 3.0% Risk provisions for loans and a
Slide 23: Group balance sheet (IFRS) – Customer deposits continue to outgrow loans
Group balance sheet (IFRS) – Customer deposits continue to outgrow loans in EUR million Sep 09 Dec 08 Change Deposits by banks 26,920 34,672 (22.4%) Customer deposits 113,317 109,305 3.7% Debt securities in issue 30,431 30,483 (0.2%) Trading liabilities 3,175 2,519 26.0% Other provisions 1,670 1,620
Slide 24: 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 1-9 09 1-9 08 1-9 09 1-9 08 1-9 09 1-9 08 1-9 09 1-9 08 1-9 09 1-9 08 Net interest income 3,284.1 3,143.2 407.2 329.8 158.8 163.3 (9.1) (62.9) 3,840.9 3,573.3 Ri
Slide 25: Core segment – Austria
Core segment – Austria Improving performance of Erste Bank Oesterreich Savings Banks EB Oesterreich Austria in EUR million 1-9 09 1-9 08 1-9 09 1-9 08 1-9 09 1-9 08 Net interest income 692.4 702.7 476.9 445.5 1,169.3 1,148.3 Risk provisions (215.8) (158.3) (105.4) (73.7) (321.2) (232.0) Net fee and
Slide 26: Core segment Central and Eastern Europe (1)
Core segment Central and Eastern Europe (1) – NII continues to improve in Q3 09 … Czech Republic Romania Slovakia Hungary in EUR million 1-9 09 1-9 08 1-9 09 1-9 08 1-9 09 1-9 08 1-9 09 1-9 08 Net interest income 806.6 794.2 577.6 542.5 281.8 256.2 253.8 211.4 Risk provisions (187.8) (78.3) (319.7)
Slide 27: Core segment Central and Eastern Europe (2)
Core segment Central and Eastern Europe (2) – … but bottom line impacted by rising risk costs Croatia Serbia Ukraine CEE in EUR million 1-9 09 1-9 08 1-9 09 1-9 08 1-9 09 1-9 08 1-9 09 1-9 08 Net interest income 152.5 144.3 22.0 24.1 20.5 22.2 2,114.7 1,994.9 Risk provisions (41.5) (15.9) (6.1) (4.3
Slide 28: Segment Retail & SME – Rising cost of risk
Segment Retail & SME – Macro deterioration reflected in rising cost of risk Retail & SME segment is the key profit driver at Erste Segment operating performance Group Comprises retail, SME, local corporates, local ALM and local 2,000 1,584 1,587 1,544 1,450 1,521 corporate centers in Austria and CEE
Slide 29: 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 120 105.2 105.0 106.8 108.9 100% 2.2% 2.2% 5.6 14.7% 14.3% 4.7 4.5 5.0 80% 90 in EUR billion 22.5% 22.7% 41.6 41.4 41.9 42.5 60% 60 13.0 13
Slide 30: Segment GCIB – Strong operating performance, higher risk costs
Segment GCIB – Strong operating performance - higher risk costs Operating result up 22.7% yoy (stable qoq) to EUR Segment operating performance 394.5m Revenues improved by 16.3% yoy mainly supported by NII 200 177 174 174 172 153 (+23.5% yoy), driven by repricing of loans and solid deposit 150 130 1
Slide 31: 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% 3.4% 1.2% 3.2% 1.3% 7.0% 6.4% 14.0% 12.5% 20.1 20.3 20.5 20.3 80% in EUR billion 20 1.2 1.2 1.1 1.1 60% 40% 74.4% 76.6% 10 18.4 18.6 18.7 18.3 20% 0 0.5 0.
Slide 32: Segment Group Markets – Continued strong performance despite weaker Q3 09
Segment Group Markets – Continued strong performance despite weaker Q3 09 Operating result was up 92.6% yoy at EUR 446.8m but Segment operating performance declined by 39.9% after extraordinary strong Q2 09 Based on generally lower volatility of currencies and interest 250 214 229 rates as well as t
Slide 33: Segment Corporate Center – Result impacted by cost savings
Segment Corporate Center – Result impacted by cost savings What is in the Corporate Center? Segment operating performance Business areas which cannot be allocated to relevant business lines, one-offs and Group ALM 20 12 0 Line-item analysis (2) (9) in EUR million -20 NII substantially improved by 85
Slide 34: Retail & SME: Austria – EB Oesterreich
Retail & SME: Austria – EB Oesterreich Operating result strongly up by 20.3% yoy (+15.1% Segment operating performance qoq) NII improved by 7.0% to EUR 476.9m (-3.6% qoq) 300 Fee income declined as anticipated – (-6.8% yoy) but improved 231 233 229 236 237 12.5% qoq; higher fees from insurance busin
Slide 35: Segment EB Oesterreich: Loan book analysis
Retail & SME: Austria – Segment EB Oesterreich: Loan book analysis * Segment EB Oesterreich - Segment EB Oesterreich - Customer loans by Basel II customer segment Customer loans by currency 30 26.3 26.0 100% 1.8% 1.7% 25.8 25.7 15.5% 15.2% 1.5 1.4 1.3 1.4 80% in EUR billion 20 11.2 11.0 10.8 11.0 60
Slide 36: Retail & SME: Austria – Savings banks
Retail & SME: Austria – Savings banks Operating result improved marginally yoy by 3.9% due Segment operating performance to: Decline in NII by 1.5% yoy and lower fee income (down 1.1% 500 yoy) driven by reduced securities transactions 370 350 344 400 334 326 Very strong trading result (>300%) to EUR
Slide 37: Segment Savings banks: loan book analysis
Retail & SME: Austria – Segment Savings banks: loan book analysis * Segment Savings Banks - Segment Savings banks - Customer loans by Basel II customer segment Customer loans by currency 40 35.0 35.3 100% 3.0% 3.2% 34.2 34.8 1.4 1.5 1.5 19.7% 19.3% 1.4 80% 30 in EUR billion 14.5 14.9 14.9 15.2 60% 2
Slide 38: Retail & SME: Czech Republic – Continued strong operating performance
Retail & SME: Czech Republic – Continued strong operating performance Operating result improved strongly by 13.3% (+19.9%)1 to EUR 619.5m driven by: Segment operating performance Solid improvement in NII: up 1.6% yoy (+7.5%) on continued 500 383 406 388 405 ability to compensate 2.25% lower interest
Slide 39: Segment Czech Republic: loan book analysis
Retail & SME: Czech Republic – Segment Czech Republic: loan book analysis * Segment Czech Republic - Segment Czech Republic - Customer loans by Basel II customer segment Customer loans by currency 20 17.7 100% 0.2% 3.8% 0.1% 3.4% 16.1 16.9 15.9 0.6 0.6 16 0.5 0.5 80% in EUR billion 5.3 5.6 5.3 5.1 1
Slide 40: Retail & SME: Romania – High risk costs impact bottom line
Retail & SME: Romania – High risks cost impact bottom line Operating result improved by 3.9% yoy (up 20.4% FX Segment operating performance adjusted)1 Solid NII up 6.5% (23.4%) supported by strong loan growth in 08 300 258 246 243 232 235 (base effect) and improved margins. Loan growth slowed down 2
Slide 41: Segment Romania: loan book analysis
Retail & SME: Romania – Segment Romania: loan book analysis * Segment Romania - Segment Romania - Customer loans by currency Customer loans by Basel II customer segment 15 100% 2.4% 2.0% 12 10.9 10.7 11.0 11.2 80% in EUR billion 0.8 0.8 0.8 1.2 54.3% 55.9% 9 60% 4.1 4.2 4.4 4.4 6 0.8 0.8 0.7 0.7 40%
Slide 42: Retail & SME: Slovakia – Improving operating performance
Retail & SME: Slovakia – Improving operating performance Operating result increased by 11.0% (+5.7%)1 Segment operating performance Increased NII +10.0% yoy (+4.8%) with continued qoq improvement (+10.8%). Lower interest rates offset by higher 138 150 122 120 business volumes at improved asset and l
Slide 43: Segment Slovakia: loan book analysis
Retail & SME: Slovakia – Segment Slovakia: loan book analysis * Segment Slovakia - Segment Slovakia - Customer loans by Basel II customer segment Customer loans by currency 8 100% 0.8% 0.8% 5.4 5.5 5.7 80% 6 5.2 in EUR billion 0.1 0.1 0.1 0.1 1.9 1.9 60% 2.0 2.0 4 99.2% 99.2% 0.4 0.4 0.3 0.4 40% 2 3
Slide 44: Retail & SME: Hungary – Operating performance remains strong
Retail & SME: Hungary – Operating performance remains strong Operating result strongly improved by 23.6% Segment operating performance (+41.9%)1 yoy NII continued to increase + 20.0% ýoy (37.7%) backed by strong 150 127 127 loan growth in 2008 and ability to re-price assets 114 108 Fee income was do
Slide 45: Segment Hungary: loan book analysis
Retail & SME: Hungary – Segment Hungary: loan book analysis * Segment Hungary - Segment Hungary - Customer loans by currency Customer loans by Basel II customer segment 10 100% 0.4% 0.5% 21.1% 22.0% 8 7.2 7.0 7.2 7.2 80% in EUR billion 0.3 0.3 0.3 0.3 6 2.5 2.3 2.4 2.4 60% 56.4% 55.6% 0.1 0.2 0.2 0.
Slide 46: Retail & SME: Croatia – Stable operating result
Retail & SME: Croatia – Stable operating result Operating result stable – down -0.4% yoy (1.4%)1 to Segment operating performance EUR 116.3m Operating income remained flat 0.4% yoy (+2.3%) 100 79 71 73 75 NII improved by +5.7% (+7.6%) despite continued strict 80 66 regulation of loan growth and decr
Slide 47: Segment Croatia: loan book analysis
Retail & SME: Croatia – Segment Croatia: loan book analysis * Segment Croatia - Segment Croatia - Customer loans by currency Customer loans by Basel II customer segment 6 100% 0.1% 0.2% 15.9% 15.3% 4.6 4.8 4.1 4.2 80% 0.5 in EUR billion 0.4 0.1 0.1 4 1.6 1.7 1.7 60% 54.9% 58.0% 1.6 0.2 0.3 0.3 0.3 4
Slide 48: Retail & SME: Serbia – High margins support operating performance
Retail & SME: Serbia High margins support operating performance Operating result improved by 35.9% yoy (59.6%)1 to Segment operating performance EUR 9.1m in 1-9 09, despite 17% lower exchange rate 15 13 13 11 11 10 Operating income improved strongly by 1.5% yoy 10 (+19.2%) across all line items 4 4
Slide 49: Segment Serbia: loan book analysis
Retail & SME: Serbia – Segment Serbia: loan book analysis * Segment Serbia - Segment Serbia - Customer loans by currency Customer loans by Basel II customer segment 600 100% 1.3% 3.6% 1.2% 3.6% 461.5 464.6 459.0 2.5 424.8 2.3 2.2 80% in EUR million 2.4 400 60% 80.9% 309.2 314.9 308.8 85.2% 274.6 40%
Slide 50: Retail & SME: Ukraine – Scaling down the business
Retail & SME: Ukraine – Scaling down the business Operating result was negative at EUR -1.6m; Segment operating performance but continued to improve compared to the previous year 20 16 15 11 11 Revenues declined by 11.1% yoy (32.2%)1 as 10 7 8 5 a consequence of halting lending activities in in EUR
Slide 51: Segment Ukraine: loan book analysis
Retail & SME: Ukraine – Segment Ukraine: loan book analysis * Segment Ukraine - Segment Ukraine - Customer loans by currency Customer loans by Basel II customer segment 800 100% 2.0% 2.0% 616.4 598.2 0.0 556.5 80% 600 in EUR million 88.1 0.0 504.4 77.8 0.0 69.4 0.0 121.3 125.1 63.3 60% 118.1 90.0% 8
Slide 52: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and sharehold
Slide 53: Erste Group's funding profile – Retail funding supports sustainable growth
Erste Group’s funding profile – Retail funding supports sustainable growth Customer deposits are main source of funding Providing a solid funding base in all local currencies Evolution of Erste Group's funding mix Translating into stable loan/deposit ratio of 115% Increased share of customer deposit
Slide 54: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and sharehold
Slide 55: 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 295m since YE 08 Thereof redemptions and amortisations EUR 245m ABS/CDO portfolio by book (September 2009)* in EUR m Face Value Market Value Change +/- % Market prices have ri
Slide 56: Key topics: ABS/CDO portfolio – Detailed portfolio analysis
Key topics: ABS/CDO portfolio Detailed portfolio analysis ABS/CDO portfolio by ratings Sepetmber 2009)* ABS/CDO portfolio by region September 2009)* % of total % of total in EUR m Face Value Market Value +/-% in EUR m Face Value Market Value +/-% (market value) (market value) AAA 496 412 (16.8%) 24.
Slide 57: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and sharehold
Slide 58: Asset quality analysis – Key definitions
Asset quality analysis – 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,
Slide 59: 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 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Retail & SME 78,036 79,659 18,527
Slide 60: Asset quality analysis – Loan book by regions
Asset quality analysis – Loan book by regions (country of origination)* Low risk Mgmt attention Substandard Non-performing Total loan book in EUR million Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Share of total Share of total Core market 85,276 88,428 20,990 18,493 5,956
Slide 61: 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 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Share of total Share of total Agriculture and forestry 1,059 993 583 532 142 134 144 128 1,
Slide 62: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (30 September 2009: EUR 34.1 bn) (30 September 2009: EUR 34.1 bn) 23.7% 3.6% 4.0%3.0% 21.5% 8.3% 14.4% 17.3% 4.3% 63.8% 6.7% 8.8% 6.9% 8.1% AT CZ SK DE US IT HU RO GB Other EUR CZK USD H
Slide 63: Asset quality analysis – Total exposure overview
Asset quality analysis – Total exposure overview Exposure by industries Exposure by risk category (30 September 2009: EUR 226.7 bn) 250 223 227 11.1% 216 217 3.4% 6 7 8 9 22.7% 4.6% 200 26 28 28 30 6.0% in EUR billion 150 100 178 175 178 180 7.4% 50 23.3% 11.6% 0 9.9% Finance/insurance Households Re
Slide 64: Asset quality analysis – NPLs and NPL coverage
Asset quality analysis – NPLs and NPL coverage (based on total exposure) Group NPL ratio vs group NPL coverage NPL distribution (30 September 2009: EUR 8.7 bn) 5.0% 100% 3.8% 12.5% 1.7% 4.0% 3.6% 80% 3.0% 3.3% 33.2% 2.9% 3.0% 60% 5.7% 62% 58% 55% 56% 2.0% 40% 4.7% 1.0% 20% 13.7% 0.0% 0% 16.3% 9.2% D
Slide 65: Asset quality – Total exposure by segments
Asset quality – Total exposure by segments * Low risk Mgmt attention Substandard Non-performing Total exposure Risk provisions NPL coverage NPL ratio Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Retail & SME 123,531 118,606 21,379 19
Slide 66: Asset quality – Total exposure by regions
Asset quality – Total exposure by regions * Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Share of total Share of total Core market 140,444 138,299 27,024 23,354 7,117 5,418 7,805 5,719 182,390 8
Slide 67: Asset quality – Total exposure by industry sectors
Asset quality – Total exposure by industry sectors * Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Sep 09 Dec 08 Share of total Share of total Agriculture and forestry 1,237 1,139 650 588 148 156 146 138 2,181
Slide 68: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and sharehold
Slide 69: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-9 09 1-9 08 Rate and margin environment Cost/income ratio 42.0% 47.2% 80% 71.4% 70.3% 70.9% 72.9% 8% 67.5% Return on equity 20.7% 32.0% Sep 09 Dec 08 Change Erste Group stake 97.99% 60% 6% Solvency ratio 12.3% 9.9
Slide 70: Key local entity data – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 1-9 09 1-9 08 Rate and margin environment 144.4% 148.4% 143.1% 143.2% Cost/income ratio 36.3% 42.7% 150% 139.2% 15% Return on equity 14.5% 32.3% Sep 09 Dec 08 Change 13.7% 14.0% 13.3% 12% Erste Group stake 69.17% 100% Solvency r
Slide 71: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) * – Slovenska sporitelna Key figures and ratios 1-9 09 1-9 08 Rate and margin environment Cost/income ratio 51.2% 51.4% 74.6% 71.2% 80% 70.5% 70.5% 8% Return on equity 6.8% 24.7% 66.7% Sep 09 Dec 08 Change Erste Group stake 100.0% 60% 5.1% 6% Solvency ratio
Slide 72: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-9 09 1-9 08 Rate and margin environment Cost/income ratio 44.3% 53.2% 270% 247.4% 12% Return on equity 17.2% 21.8% 204.5% 212.9% 216.2% Sep 09 Dec 08 Change 194.1% 10% Erste Group stake 99.94% 10.0% 9.6% 9.6% 18
Slide 73: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 1-9 09 1-9 08 Rate and margin environment 118.4% 113.4% Cost/income ratio 40.8% 42.1% 120% 107.9% 110.2% 12% 100.9% Return on equity 13.3% 18.3% Sep 09 Dec 08 Change 100% 8.5% 11.5% Erste Group stake 65.03% 7.1% 9
Slide 74: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 1-9 09 1-9 08 Rate and margin environment Cost/income ratio 69.4% 74.8% 18.8% 140% 17.6% 20% Return on equity 3.7% 8.8% 16.2% 120% 14.7% Sep 09 Dec 08 Change 100% 118.2% 119.9% 12.8% 15% Erste Group stake 80.49% So
Slide 75: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 1-9 09 1-9 08 Rate and margin environment 23.8% Cost/income ratio 69.4% 88.5% 2000% 1748.6% 25% Return on equity na na Sep 09 Dec 08 Change 1373.6% 16.6% 20% 1500% 15.2% Erste Group stake 100.0% Solvency ratio 15.
Slide 76: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and sharehold
Slide 77: Erste Group historic financials – Quarterly income statement (IFRS)
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net interest income 1,101.7 1,151.1 1,154.9 1,267.3 1,339.8 1,226.0 1,279.3 1,335.6 Net fee and commission income 503.7 491.9 510.3 486.8 482.1 444.6 443.6 425.1 Net tra
Slide 78: Erste Group historic financials – Quarterly balance sheet (IFRS)
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Cash and balances with central banks 7,615 7,783 6,854 7,692 7,556 5,897 6,897 5,458 Loans and advances to credit institutions 14,937 15,938 19,253 19,088 14,344 12
Slide 79: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME Group Corporate & Investment Banking Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net interest income 1,108.4 1,171.9 1,070.0 1,075.9 1,138.2 113.0 130.8 136.6 131.5 139.1 Risk provisions (178.8) (314.
Slide 80: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net interest income 154.3 171.8 156.4 163.2 157.3 241.8 271.4 239.2 216.3 236.9 Risk provisions (23.6) (18.8) (34.1) (34.8) (36.5) (47.6)
Slide 81: Quarterly segment reporting – CEE sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) in EUR million Czech Republic Romania Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net interest income 282.5 298.6 264.6 256.1 285.9 185.8 199.1 193.2 190.7 193.8 Risk provisions (29.4) (38.3) (37.0) (74.6) (76.
Slide 82: Quarterly segment reporting – CEE sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net interest income 52.4 49.4 47.6 53.3 51.5 9.5 9.3 7.7 8.1 6.1 Risk provisions (5.3) (8.8) (8.1) (15.9) (17.6) (1.4) (2.4) (1.4) (2.6)
Slide 83: Presentation topics
Presentation topics Overview of key ratios and macro trends Summary and 1-9 2009 highlights 1-9 2009 key topics 1-9 2009 financials and segment reporting Appendix Funding & liquidity ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and sharehold
Slide 84: 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 Sep 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 9,173 Total own funds pursuant to 1
Slide 85: Shareholder structure
Shareholder structure – Total number of shares: 317,925,086 By investor By region Austria Verein 5.0% Others Criteria Caixa Continental 3.0% Corp Europe 5.1% 16.2% 31.0% UK & Ireland 10.5% Institutional Austria investors 57.4% 39.6% Employees 3.9% North America Savings banks 12.8% 8.4% Private inves
Slide 86: 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