Erste Group Bank Ag · VIE:EBS
Erste Group Bank — H1 2022 Earnings Presentation
21 slides from Erste Group Bank's earnings presentation, Aug 1, 2022
Slide 1: Half-year results 2022
PRESS CONFERENCE, 1 AUGUST 2022 Half-year results 2022 Willi Cernko, Chief Executive Officer Stefan Dörfler, Chief Financial Officer Alexandra Habeler-Drabek, Chief Risk Officer Ingo Bleier, Chief Corporates & Markets Officer
Slide 2: GDP forecast 2022: Cooling off in second half of the year
GDP forecast 2022: Cooling off in second half of the year Growth rate, in % 1.6 2.0 3.8 5.5 5.1 4.9 2.5 EUROZONE 2.7% Ø ERSTE MARKETS 3.7% Source: Erste Group Research 2
Slide 3: GDP forecast 2023: Growth in CEE outpaces euro zone
GDP forecast 2023: Growth in CEE outpaces euro zone Growth rate, in % 2.4 3.0 1.8 2.8 4.0 2.1 3.7 EUROZONE 1.8 % Ø ERSTE MARKETS 2.7 % Source: Erste Group Research 3
Slide 4: High inflation across the entire region
High inflation across the entire region Forecasted average annual inflation rate, in % 2022 2023 EUROZONE Ø 2022: 7.6% 2023: 3.9% 14.3 12.4 11.4 10.9 10.0 9.6 8.3 7.4 7.8 7.2 5.6 5.6 4.8 4.4 AT CZ SK RO HU HR RS Source: Erste Group Research 4
Slide 5: Central banks in CEE: early hikes in key interest rates
Central banks in CEE: early hikes in key interest rates 12 Czech Republic Hungary Romania Serbia euro zone 10 8 6 4 2 0 Key rate, in % 5
Slide 6: Public debt and budget deficits in CEE
Public debt and budget deficits in CEE in % of GDP 2022 2023 Maastricht criteria Budget Deficits Public Debt 80 77 73 72 71 69 -1.5 64 62 -2.5 -2.5 -2.5 -3.1 -3.1 55 54 -3.5 48 49 -4.0 43 44 -4.4 -4.5 -4.9 -5.7 -6.0 -6.7 AT CZ SK RO HU HR RS AT CZ SK RO HU HR RS 6
Slide 7: Risk costs currently at low level
Risk costs currently at low level In basis points of gross customer loans 78 56 15 9 9 2 -4 * -3 * 2015 2016 2017 2018 2019 2020 2021 H1 2022 * Net release of risk provisions 7
Slide 8: NPL ratio at a historically low level
NPL ratio at a historically low level in % NPL ratio NPL coverage ratio 2.4 90.9 91.8 2.2 Dec 2021 June 2022 Dec 2021 June 2022 8
Slide 9: Operating income rises year-on-year
Operating income rises year-on-year in EUR mn + 9.4 % 4,147 3,791 111 116 127 1,215 1,099 2,837 2,449 Net interest income Net fee and commission income Net trading result Other income -16 H1 2021 H1 2022
Slide 10: Continued strong demand for loans
Continued strong demand for loans in EUR bn +6.3% 191.5 180.3 Dec 2021 June 2022
Slide 11: Increased operating expenses through high inflation and deposit insurance contributions
Increased operating expenses through high inflation and deposit insurance contributions in EUR mn + 8.7 % 2,285 2,103 273 273 718 581 1,249 1,295 Personnel expenses Other administrative expenses Depreciation and amortization H1 2021 H1 2022
Slide 12: Net result increases in the first half-year
Net result increases in the first half-year EUR in mn + 23.9% 356 109 23 1,137 -58 -28 -182 918 H1 2021 Operating Operating Risk costs Other Taxes on Minorities H1 2022 income expenses result income 12
Slide 13: Strong capitalization to finance the economy and households
Strong capitalization to finance the economy and households CET1 ratio (final) 14.2% 14.5% 14.2% 13.5% 13.7% 12.8% 12.9% 12.0% 11.2% 11.4% 10.6% 9.2% 9.4% 8.3% Dec 2009 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 June 2022 13
Slide 14: Corporate and Capital markets segment
Corporate and Capital markets segment Corporate loan stock development Issuances gross, in EUR bn total volume, in EUR bn +8.8% +33.1% 68.7 82.3 63.1 61.9 Dec 2021 Jun 2022 H1 2021 H1 2022 Continued strong growth in Significant increase in issuances despite difficult corporate customer business mark
Slide 15: Digitalization: driving innovation in customer business
Digitalization: driving innovation in customer business Online lending Online onboarding Expansion of Rating transparency Strong growth rates for companies: the sustainable across the group for customers: pilot in product range launched in Austria Croatia successfully completed and Romania Your rati
Slide 16: Retail customers: demand for housing loans remains strong
Retail customers: demand for housing loans remains strong Housing loans Consumer loans Newly opened regular securites EUR in bn EUR in bn saving plans pieces +5.1% 69.6 66.2 -23.8% 200,100 152,500 +2.5% 11.8 12.1 Dec 2021 June 2022 Dec 2021 June 2022 H1 2021 H1 2022 16
Slide 17: 8.4 million customers use George
8.4 million customers use George George users June 2022, growth YoY 2.4 mn +8.3% 1.2 mn +12.5% 2.2 mn +12.5% 661k +77% 1.5 mn +25% 390k +60% 17
Slide 18: We build financial health
WE FINANCIAL HEALTH BUILD 18
Slide 19: Erste Group aims to fund ca. 15,000 affordable rental flats in CEE by 2030
Erste Group aims to fund ca. 15,000 affordable rental flats in CEE by 2030 Already now, around 1 bn euros Founding of a new subsidiary 200 in annual financing for for the construction of affordable rental flats affordable rental housing In 2022, with the Slovak Government ca. 6,000 as a partial inve
Slide 20: Selected ESG goals
Selected ESG goals Net-Zero portfolio by 2050 (first set of interim targets to EUR 1 bn 37% be disclosed by 2023) Social Finance loans by 2030 women in senior-level management positions by 2025 Climate neutral 200,000 operations by 2023 jobs to be created or preserved ca. 30,000 by 2030 by Social Ba
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