Erste Group Bank AG · VIE:EBS
Erste Group Bank — Shareholder Meeting (May 2017)
47 slides from Erste Group Bank's shareholder meeting presentation, May 17, 2017
Slide 1: 24th Annual General Meeting Erste Group Bank AG
24th Annual General Meeting Erste Group Bank AG 17 May 2017 Wiener Stadthalle Page
Slide 2: Friedrich Rödler, Chairman of the supervisory board
Friedrich Rödler Chairman of the supervisory board Page
Slide 3: First item: Report on the financial year 2016
First item on the agenda Report on the financial year 2016 Page 3
Slide 4: Report on the financial year 2016 of Erste Group Bank AG (consolidated)
Report on the financial year 2016 of Erste Group Bank AG (consolidated) Andreas Treichl CEO Erste Group Page
Slide 5: 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 6: Operating environment – Strong economic development in Erste Group's markets
Operating environment – 2016 Strong economic development in Erste Group‘s markets 2017 Real GDP growth (in %) Domestic demand contribution to GDP growth (in %) 5.9 4.8 5.6 4.3 3.3 3.1 3.4 3.2 3.6 2.9 3.4 2.7 3.1 2.3 2.4 2.0 2.2 1.5 1.5 1.9 1.4 1.6 1.5 0.4 AT CZ SK RO HU HR AT CZ SK RO HU HR • CEE ec
Slide 7: Operating environment – Solid public finances in Erste Group's markets
Operating environment – 2016 Solid public finances in Erste Group‘s markets 2017 General government balance (in % of GDP) Public debt (in % of GDP) 0.5 85 84 82 81 74 74 Maastricht limit: 60% -0.6 52 52 -1.2 -1.5 -1.4 37 36 37 39 -1.6 -1.6 -2.2 -2.2 -2.8 -2.7 -3.5 Maastricht limit: -3% AT CZ SK RO H
Slide 8: Business environment – Historic low interest rate environment poses challenges
Business environment – 3m Interbank Historic low interest rate environment poses challenges 10-year Gov Austria Czech Republic Romania 0.74% 0.67% 3.50% 3.36% 0.46% 0.43% 0.31% -0.02% 0.29% -0.23% 1.10% 0.65% 2015 2016 2015 2016 2015 2016 • ECB cut discount rate to 0% in March 16; • National bank ma
Slide 9: Customer loans and deposits – Continued loan growth, strong deposit base
Business performance: customer loans and deposits – 31/12/15 31/12/16 Continued loan growth, strong deposit base, balanced business Customer loans (net) Customer deposits Loan/deposit ratio 125.9 127.9 98.4% Group 130.7 138.0 94.7% 29.5 30.3 97.4% AT/EBOe 30.6 31.8 96.1% 38.0 37.9 100.5% AT/SB 39.5
Slide 10: Operating revenues and expenses – Pressure on revenues, increased costs
Business performance: operating revenues and expenses – Pressure on revenues, increase in costs driven by regulatory requirements and IT Operating revenues Operating expenses -1.0% in EUR m in EUR m 6,772 6,703 210 255 284 261 +4.1% 1,862 1,783 3,869 4,028 445 453 1,179 1,236 4,445 4,375 2,245 2,339
Slide 11: Operating result and cost/income ratio – Operating result declines
Business performance: operating result and cost/income ratio – 2015 2016 Operating result declines year-on-year Geographic segments Performance summary 2,903 57.1% • Declining operating result across all countries, Group 60.2% 2,663 except Serbia 400 61.6% AT/EBOe 63.1% 391 469 67.3% • Pressure on o
Slide 12: Risk costs – Risk costs fall in all segments
Business performance: risk costs – 2015 2016 Risk costs fall in all segments Geographic segments Performance summary 729 0.56% • Healthy or improving credit risk environment Group 196 0.15% across the board: AT/EBOe 59 0.20% • Austria, supported by all three subsegments 29 0.10% AT/SB 84 0.21% • Rom
Slide 13: Asset quality in 2016 – Strong improvement across all segments
Business performance: asset quality in 2016 – 2015 2016 Strong asset quality improvement across all segments NPL volume NPL ratio NPL coverage (exc collateral) 9,314 7.1% 64.5% Group 69.1% 6,678 4.9% AT/EBOe 861 2.9% 62.6% 781 2.5% 59.3% 2,219 5.6% 57.7% AT/SB 58.1% 1,980 4.9% 1,345 10.5% 53.2% AT/O
Slide 14: Other result improves slightly despite higher banking levies
Business performance: other result – Other result improves slightly despite higher banking levies Other result * Levies on banking activities in EUR m in EUR m -236 -535 -517 -389 2015 2016 2015 2016 • Other result slightly improved yoy as a result of • Increase in banking levies due to one-off bank
Slide 15: Pre-tax result and taxes on income – Further increase in pre-tax result
Business performance: pre-tax result and taxes on income – Further increase in pre-tax result Pre-tax result Taxes on income in EUR m in EUR m 1,950 1,639 -364 -414 2015 2016 2015 2016 • Risk costs at historic low lead to further • Tax rate is at 21.2% in 2016 improvement of pre-tax result Page 15
Slide 16: Net result and dividend – Dividend doubled to EUR 1.0 per share
Business performance: net result and dividend – Dividend doubled to EUR 1.0 per share Net result Dividend in EUR m in EUR 1,265 968 1.0 0.5 2015 2016 2015 2016 • Highest net profit in corporate history • Payout ratio equates 34.0% Page 16
Slide 17: Regulatory capital position – 13.4% CET1 ratio
Business performance: regulatory capital position – Capital build continues at fast pace in 2016, resulting in 13.4% in CET1 ratio Regulatory capital (EUR bn) Risk-weighted assets (EUR bn) Capital ratios (in %) 18.8 101.8 18.5 98.3 17.9 17.6 3.6 2.8 5.2 10.8 15.1 5.4 13.4 13.4 12.3 12.3 84.7 83.1 13
Slide 18: Q1 17 performance summary – Lower net interest income weighs on operating result
Q1 17 performance summary – Lower net interest income weighs on operating result Operating revenues Operating expenses Operating result -1.4% in EUR m in EUR m in EUR m 1,637 1,615 51 50 49 57 +0.9% -3.4% 443 458 1,009 1,018 620 599 110 114 334 332 1,092 1,051 565 572 1-3 16 1-3 17 1-3 16 1-3 17 1-3
Slide 19: Q1 17 performance summary – Net profit slightly down
Q1 17 performance summary – Net profit slightly down in Q1 17 Risk costs Other result Net result +16.7% in EUR m in EUR m in EUR m 66 -4.6% 56 275 262 -99 -137 1-3 16 1-3 17 1-3 16 1-3 17 1-3 16 1-3 17 • Risk costs remain at historic low • Other result improves mainly • Return on tangible equity des
Slide 20: Q1 17 performance summary – Volume growth at excellent asset quality
Q1 17 performance summary – Volume growth at excellent asset quality Customer loans (net) Customer deposits NPL ratio +1.8% in EUR m +4.9% in EUR m 130,654 132,992 138,013 144,707 4.9% 4.9% 31/12/16 31/3/17 31/12/16 31/03/17 31/12/16 31/03/17 • Customer loan growth mainly • Continued inflow of custo
Slide 21: Share price performance
Share price performance – Share price up 21% year-to-date and up 46% year-on-year 35 30 in EUR 25 20 15 Page 21
Slide 22: Conclusion – Outlook 2017
Conclusion – Outlook 2017 • Real GDP growth of between 1.5-4.5% expected in 2017 in CEE and Austria Macro outlook • Real GDP growth to be driven by solid domestic demand, as real wage growth and declining 2017 unemployment support economic activity in CEE • Solid public finances across CEE • ROTE fo
Slide 23: Thank you for your attention!
Thank you for your attention! Page
Slide 24: Agenda Items
Agenda Items Friedrich Rödler Chairman of the supervisory board Page
Slide 25: Appropriation of the profit
Second item on the agenda Appropriation of the profit Page 25
Slide 26: Grant of discharge to the members of the management board
Third item on the agenda Grant of discharge to the members of the management board Page 26
Slide 27: Grant of discharge to the members of the supervisory board
Fourth item on the agenda Grant of discharge to the members of the supervisory board Page 27
Slide 28: Resolution on the remuneration of the members of the supervisory board
Fifth item on the agenda Resolution on the remuneration of the members of the supervisory board Page 28
Slide 29: Appointment of an additional auditor
Sixth item on the agenda Appointment of an additional auditor Page 29
Slide 30: Elections to the supervisory board
Seventh item on the agenda Elections to the supervisory board Page 30
Slide 31: Acquisition of own shares for the purpose of securities trading
Eighth item on the agenda Acquisition of own shares for the purpose of securities trading Page 31
Slide 32: Acquisition of own shares for no designated purpose
Ninth item on the agenda Acquisition of own shares for no designated purpose Page 32
Slide 33: Acquisition of own shares for offering to employees, management board or foundation
Tenth item on the agenda Acquisition of own shares for the purpose of offering these to employees, members of the management board or to a private foundation Page 33
Slide 34: Amendments of the articles of association
Eleventh item on the agenda Amendments of the articles of association Page 34
Slide 35: 24th Annual General Meeting Q&A
24th Annual General Meeting Erste Group Bank AG Q&A Page
Slide 36: 24th Annual General Meeting Resolutions
24th Annual General Meeting Erste Group Bank AG Resolutions Page
Slide 37: Appropriation of the profit
Second item on the agenda Appropriation of the profit Page 37
Slide 38: Grant of discharge to the members of the management board
Third item on the agenda Grant of discharge to the members of the management board Page 38
Slide 39: Grant of discharge to the members of the supervisory board
Fourth item on the agenda Grant of discharge to the members of the supervisory board Page 39
Slide 40: Resolution on the remuneration of the members of the supervisory board
Fifth item on the agenda Resolution on the remuneration of the members of the supervisory board Page 40
Slide 41: Appointment of an additional auditor
Sixth item on the agenda Appointment of an additional auditor Page 41
Slide 42: Elections to the supervisory board
Seventh item on the agenda Elections to the supervisory board Page 42
Slide 43: Acquisition of own shares for the purpose of securities trading
Eighth item on the agenda Acquisition of own shares for the purpose of securities trading Page 43
Slide 44: Acquisition of own shares for no designated purpose
Ninth item on the agenda Acquisition of own shares for no designated purpose Page 44
Slide 45: Acquisition of own shares for offering to employees, management board or foundation
Tenth item on the agenda Acquisition of own shares for the purpose of offering these to employees, members of the management board or to a private foundation Page 45
Slide 46: Amendments of the articles of association
Eleventh item on the agenda Amendments of the articles of association Page 46
Slide 47: Thank you for your active participation!
24th Annual General Meeting Erste Group Bank AG Thank you for your active participation! Page