Slide 1: Erste Group investor presentation – FY 2013 preliminary results
Erste Group investor presentation – FY 2013 preliminary results 28 February 2014 Continued cost discipline, strong capital position Andreas Treichl, CEO, Erste Group Gernot Mittendorfer, CFO, Erste Group Andreas Gottschling, CRO, Erste Group
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: Executive summary – Continued cost discipline, strong capital position
Executive summary – Continued cost discipline, strong capital position • Net profit of EUR 61.0m influenced by one-off effects and tax impact • Decline in net profit on significant one-off effects in Q4 13 and tax effects in Austrian tax group Income statement – • Operating result impacted by subdue
Slide 4: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 4
Slide 5: Operating environment: macro trends – Economic recovery becoming visible in CEE
Operating environment: macro trends – Economic recovery becoming visible in CEE − Some of the CEE countries have achieved marginally Real GDP growth in Erste Group‘s core markets (in %) better than expected economic growth in 2013 − However, growth was mainly driven by exports, domestic demand 3.5 2
Slide 6: Operating environment: macro trends – What has recently happened in CEE?
Operating environment: macro trends – What has recently happened in CEE? − AT: economic growth slightly accelerated during 2013 − Economy grew by 0.5% yoy in Q4 2013 - representing a continuous improvement compared to the previous quarters − Growth mainly driven by exports and investment activity wh
Slide 7: Key financial indicators – EPS and ROE impacted by one-offs
Key financial indicators – EPS and ROE impacted by one-offs YTD cost income ratio YTD net interest margin 52.0% 52.5% 51.5% 50.2% 50.2% 3.08% 3.04% 2.97% 2.80% 2.70% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2.57 Cash earnings per share** Cash return on equity** 2.17 2.17 2.37 9.7% 1.97 7.6%
Slide 8: Income statement (IFRS) FY 2013 – Net profit down on impairments and tax effects
Income statement (IFRS) FY 2013 – Net profit down on impairments and tax effects in EUR million 2013 2012 Change Comment Net interest income 4,858.1 5,235.3 (7.2%) Low interest rates, subdued loan demand Risk provisions for loans (1,763.4) (1,980.0) (10.9%) Significant reduction in retail & SME busi
Slide 9: Income statement (IFRS) drill-down – Other operating result in detail
Income statement (IFRS) drill-down – Other operating result in detail Other operating result 2013: EUR -1,081.9m Deconsolidation • Goodwill impairments: EB Ukraine − BCR: EUR 281.0m Banking & − EB Croatia: EUR 52.2m -76.6 transaction − Others: EUR 49.8m taxes -311.0 • Banking taxes and FTT: − AT: EU
Slide 10: Income statement (IFRS) Q4 13 vs Q3 13 – Net result burdened by one-off effects
Income statement (IFRS) Q4 13 vs Q3 13 – Net result burdened by one-off effects in EUR million Q4 13 Q3 13 Change Comment Net interest income 1,206.5 1,220.4 (1.1%) Decline mainly in HU and CZ Risk provisions for loans (503.4) (428.2) 17.6% Higher risk provisions in Savings Banks and GCIB Net fee an
Slide 11: Balance sheet (IFRS) – Lower customer loans, lower RWAs
Balance sheet (IFRS) – Lower customer loans, lower RWAs in EUR million Dec 13 Dec 12 Change Comment Cash and balances with central banks 8,670 9,740 (11.0%) Loans and advances to credit institutions 9,062 9,074 (0.1%) Loans and advances to customers 127,698 131,928 (3.2%) Reduction in most segments
Slide 12: Balance sheet (IFRS) – Continued strong deposit base
Balance sheet (IFRS) – Continued strong deposit base in EUR million Dec 13 Dec 12 Change Comment Deposits by banks 17,126 21,822 (21.5%) Customer deposits 122,442 123,053 (0.5%) Stable in retail &SME, decline in term deposits Debt securities in issue 27,986 29,427 (4.9%) Value adjustments from Portf
Slide 13: Segment highlights – Improvement in RO, solid results in EBOe, CZ and SK
Segment highlights – Improvement in RO, solid results in EBOe, CZ and SK Top segment performers in 2013: Romania EB Oesterreich Czech Republic Slovakia in EUR million 2013 2012 ∆ 2013 2012 ∆ 2013 2012 ∆ 2013 2012 ∆ Operating income 775 763 2% 962 953 1% 1,438 1,581 (9%) 541 538 1% Operating expenses
Slide 14: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 14
Slide 15: BCR update – Turn around track record in 2013
BCR update – Turn around track record in 2013 • Return to profitability achieved Key priorities • Net profit at EUR 127.9m (EUR 7.6m pre-tax) Key priority #1: • NPL stock declined for the 2nd consecutive quarter, NPL ratio at 30.6% Improve asset • NPL provisioning coverage further improved to 64.1%
Slide 16: BCR update – Main goals for 2014
BCR update – Main goals for 2014 • Target 20% market position in key growth categories Key priorities • Achieve 15-20% NPL reduction compared to 2013 • Deliver full cost synergy • Retail franchise • Reinforce mortgage franchise leadership by acquiring at least 20% market share in 2014 • Increase uns
Slide 17: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 17
Slide 18: Loan book review – Decline in GCIB and most CEE
Loan book review – Decline in GCIB and most CEE − Gross customer loans declined by 3.2% yoy, Customer loans by main segments 1.4% qoq reduction mainly in GCIB, RO and HU − Austria: stable loan book yoy, increase qoq 150 131.9 130.3 129.8 129.5 127.7 − CEE: overall declining loan book, most pronounce
Slide 19: Asset quality review – Decline in NPLs continued in Q4 2013
Asset quality review – Decline in NPLs continued in Q4 2013 − NPL ratio stabilised qoq, but still up 0.4pp yoy Erste Group: NPL ratio vs NPL coverage − Increase yoy driven by GCIB and declining loan book − Second consecutive quarter of declining NPL stock, 30% 62.6% 63.0% 63.1% 65% 62.4% supported b
Slide 20: Asset quality review – Risk costs further decreased in retail & SME business
Asset quality review – Risk costs further decreased in retail & SME business − Retail & SME/Austria: asset quality stable NPL ratios in key segments − NPL ratio stable at 5.5% − NPL coverage ratio slightly down to 61.4% 35% 30.6% 30% − Hungary: decline in loan book more pronounced 25% 26.8% than dec
Slide 21: Asset quality review – CZ & SK improve, while RO stabilises
Asset quality review – CZ & SK improve, while RO stabilises − Slovakia: further good quality loan growth − NPL ratio further declined to 5.5% Risk costs in key segments − NPL coverage ratio stood at 87.3% − Loan growth mainly with retail clients 8% − Czech Republic: NPL ratio reduction from 6% alrea
Slide 22: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 22
Slide 23: Funding update – Strong customer deposit performance
Funding update – Strong customer deposit performance − Customer deposits almost stable, despite FX effect Customer deposit trends by main segments − Decline by only 0.5% yoy, despite significant CZK 123.1 123.1 122.5 122.1 122.4 devaluation; lower deposits mainly in Group Markets 125 5.5 6.2 6.1 6.5
Slide 24: Funding update – Excellent liquidity position, limited funding requirements
Funding update – Excellent liquidity position, limited funding requirements − Short-term funding needs very well covered Evolution of funding mix − Investment in highly liquid assets resulted in comfortable 100% 3.2% 3.0% 3.0% 2.7% 2.8% 90% 8.5% 9.0% 8.2% 8.3% 7.9% collateral coverage of short-term
Slide 25: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 25
Slide 26: Capital position – Capital increase & participation capital repayment
Capital position – Capital increase & participation capital repayment Capital position (Dec 2013) Recent developments Capital development Core tier 1 ratio − First Austrian bank that fully (total risk) repaid the participation capital 11.4% CT1 (Basel 2.5) ratio 11.4% (EUR 1.76 bn) 9.6% − Capital in
Slide 27: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 27
Slide 28: Conclusion – Outlook for 2014
Conclusion – Outlook for 2014 In order to ensure like-for-like comparison, all P&L figures provided in this outlook statement are adapted in line with EBA FINREP reporting standards to be applied from Q1 2014. The full dataset of the adapted 2013 figures has been published separately on 28 February
Slide 29: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 29
Slide 30: Segment review – Improved profitability in the Retail & SME segment
Segment review – Improved profitability in the Retail & SME segment Group Corporate Retail & SME GCIB Group Markets Total Group Center in EUR million 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 Net interest income 4,044.8 4,318.5 401.4 495.9 212.5 183.7 199.4 237.2 4,858.1 5,235.3 Risk provisi
Slide 31: Region – Austria Net profit impacted by other result
Region – Austria Net profit impacted by other result Savings banks EB Oesterreich Austria in EUR million 2013 2012 2013 2012 2013 2012 Net interest income 908.4 940.0 610.5 617.8 1,518.9 1,557.8 Risk provisions for loans and advances (235.9) (225.9) (70.3) (96.2) (306.2) (322.1) Net fee and commissi
Slide 32: Region – Central and Eastern Europe (1)
Region – Central and Eastern Europe (1) Romania shows most significant yoy improvement Czech Republic Romania Slovakia Hungary in EUR million 2013 2012 2013 2012 2013 2012 2013 2012 Net interest income 986.3 1,113.8 574.4 572.4 429.5 424.9 256.5 335.2 Risk provisions for loans and advances (119.2) (
Slide 33: Region – Central and Eastern Europe (2)
Region – Central and Eastern Europe (2) Declining risk costs drive CEE performance Croatia Serbia Ukraine CEE in EUR million 2013 2012 2013 2012 2013 2012 2013 2012 Net interest income 234.3 253.7 38.7 37.1 6.2 23.6 2,525.9 2,760.7 Risk provisions for loans and advances (168.6) (137.4) (9.6) (9.0) (
Slide 34: Segment Retail & SME – Net profit up on lower risk costs
Segment Retail & SME – Net profit up on lower risk costs − Decline in operating expenses almost offsets in EUR million 2013 2012 Change decrease in operating income Net interest income 4,044.8 4,318.5 (6.3%) − Operating income decreased by 2.8% yoy − Growing share of secured lending in portfolio com
Slide 35: 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 120 113.6 112.2 112.0 112.3 111.1 100% 1.7% 1.3% 1.2% 1.2% 1.1% 6.6 6.4 6.2 6.4 11.0% 10.6% 10.0% 9.8% 9.5% 6.7 80% 21.4% 21.2% 21.2% 21.5% 2
Slide 36: Segment GCIB excl IB – Net loss due to higher risk costs and lower NII
Segment GCIB excl IB – Net loss due to higher risk costs and lower NII − Operating result declined on lower NII − NII declined mainly due to volume declines across all in EUR million 2013 2012 Change business lines Net interest income 348.7 420.3 (17.0%) − Fee income increased mainly due to positive
Slide 37: International Business (GCIB) – Net profit on improved other result
International Business (GCIB) – Net profit on improved other result − Reduction of business impacts International Business unit result in EUR million 2013 2012 Change − NII declined as a result of significant portfolio downsizing Net interest income 52.7 75.6 (30.3%) − Trading result impacted by val
Slide 38: Segment GCIB (incl IB) – Loan book analysis
Segment GCIB (incl IB) – Loan book analysis Segment GCIB - Segment GCIB - Customer loans by currency Customer loans by Basel II customer segment 25 5.1% 5.1% 100% 5.3% 5.3% 4.6% 1.5% 1.3% 1.5% 1.4% 1.0% 6.9% 6.6% 6.7% 6.4% 6.8% 20 17.9 17.7 80% 7.0% 7.5% 7.6% 8.1% 17.2 16.7 7.0% 16.0 in EUR billion
Slide 39: Segment Group Markets – Net profit down on lower trading result
Segment Group Markets – Net profit down on lower trading result − Operating result and net profit declined substantially on lower net trading result in EUR million 2013 2012 Change − Fee income improved on higher contributions from Erste Asset Net interest income 212.5 183.7 15.7% Management Net fee
Slide 40: Segment Group Corporate Center – FY 2013 results impacted by one-offs
Segment Group Corporate Center – FY 2013 results impacted by one-offs − What is in the Group Corporate Center? − Included are group services such as marketing, organisation, in EUR million 2013 2012 Change information technology and other departments supporting the Net interest income 199.4 237.2 (1
Slide 41: Retail & SME: Austria/EB Oesterreich – Decline in net profit due to lower NII
Retail & SME: Austria/EB Oesterreich – Decline in net profit due to lower NII and other result − Operating result improved by 8.8% − NII decreased yoy as a result of lower margins and subdued in EUR million 2013 2012 Change loan demand Net interest income 610.5 617.8 (1.2%) − Fee income increased yo
Slide 42: Retail & SME: Austria/EB Oesterreich – Loan book analysis
Retail & SME: Austria/EB Oesterreich – Loan book analysis EB Oesterreich geographical segment EB Oesterreich geographical segment Customer loans by Basel II customer segment Customer loans by currency 30 28.1 27.8 27.9 28.1 28.0 100% 1.6% 1.5% 1.3% 1.2% 0.9% 1.8 1.8 1.5 1.5 1.6 11.3% 10.4% 10.1% 9.7
Slide 43: Retail & SME: Austria/Savings banks – Improved net profit
Retail & SME: Austria/Savings banks – Improved net profit − Operating result slightly down due to weaker net interest income in EUR million 2013 2012 Change − NII decreased as a result of lower income from financial assets Net interest income 908.4 940.0 (3.4%) − Net fee income up primarily on the b
Slide 44: Retail & SME: Austria/Savings banks – Loan book analysis
Retail & SME: Austria/Savings banks – Loan book analysis Savings banks geographical segment Savings banks geographical segment Customer loans by Basel II customer segment Customer loans by currency 40 37.7 37.3 37.4 37.5 37.7 100% 3.3% 2.3% 2.2% 2.3% 2.1% 1.7 1.6 1.6 1.6 1.7 13.8% 13.1% 12.8% 12.2%
Slide 45: Retail & SME: Czech Republic – Net profit down on lower operating income
Retail & SME: Czech Republic – Net profit down on lower operating income − Operating result declined by 10.8% − NII down on low interest rate environment and subdued loan in EUR million 2013 2012 Change demand Net interest income 986.3 1,113.8 (11.4%) − Net fee income declined on decreased fees from
Slide 46: Retail & SME: Czech Republic – Loan book analysis
Retail & SME: Czech Republic – Loan book analysis Czech Republic geographical segment Czech Republic geographical segment Customer loans by Basel II customer segment Customer loans by currency 20 17.9 17.9 0.2% 0.2% 0.1% 0.1% 0.1% 17.5 17.6 17.0 100% 3.5% 3.9% 4.1% 5.2% 0.7 0.7 0.7 4.7% 0.7 0.7 16 5
Slide 47: Retail & SME: Romania – Restructuring well under way, net profit in FY 2013
Retail & SME: Romania – Restructuring well under way, net profit in FY 2013 − Operating result improved yoy − NII relatively stable in EUR million 2013 2012 Change − Strong underlying fee performance on payment transfers Net interest income 574.4 572.4 0.3% − Decline in net trading result due to low
Slide 48: Retail & SME: Romania – Loan book analysis
Retail & SME: Romania – Loan book analysis Romania geographical segment Romania geographical segment Customer loans by Basel II customer segment Customer loans by currency 12 100% 1.3% 1.4% 1.3% 1.3% 1.2% 10.7 10.5 10.3 9.9 9.5 1.2 1.2 1.2 80% 9 1.2 1.2 in EUR billion 61.2% 60.8% 60.8% 59.7% 59.7% 4
Slide 49: Retail & SME: Slovakia – Solid performance continues
Retail & SME: Slovakia – Solid performance continues − Operating result stable − NII improvement despite low interest rate environment driven by in EUR million 2013 2012 Change retail loan growth Net interest income 429.5 424.9 1.1% − Fee income decreased yoy due to legislation limiting commissions
Slide 50: Retail & SME: Slovakia – Loan book analysis
Retail & SME: Slovakia – Loan book analysis Slovakia geographical segment Slovakia geographical segment Customer loans by Basel II customer segment Customer loans by currency 8 6.7 6.8 6.8 7.0 6.6 100% 0.2% 0.1% 0.1% 0.1% 0.1% 0.2 0.2 0.2 0.4 0.2 6 1.3 1.3 1.3 1.3 1.2 80% in EUR billion 0.3 0.3 0.3
Slide 51: Retail & SME: Hungary – Operating performance reflects deleveraging
Retail & SME: Hungary – Operating performance reflects deleveraging − Operating result down due to lower business volumes − NII declined on portfolio reduction, lower margins and higher FX in EUR million 2013 2012 Change refinancing costs Net interest income 256.5 335.2 (23.5%) − Fee income mainly i
Slide 52: Retail & SME: Hungary – Loan book analysis
Retail & SME: Hungary – Loan book analysis Hungary geographical segment Hungary geographical segment Customer loans by Basel II customer segment Customer loans by currency 10 100% 0.1% 0.0% 0.1% 0.1% 0.0% 8 21.2% 23.1% 22.5% 21.2% 22.0% 80% 6.2 in EUR billion 5.9 5.5 5.6 6 0.3 0.3 5.3 0.1 0.3 0.3 60
Slide 53: Retail & SME: Croatia – Risk costs and other result impact net profit
Retail & SME: Croatia – Risk costs and other result impact net profit − Operating result decreased − NII declined due to lower margins and subdued demand in retail in EUR million 2013 2012 Change business Net interest income 234.3 253.7 (7.6%) − Fee income improved on card business and payment trans
Slide 54: Retail & SME: Croatia – Loan book analysis
Retail & SME: Croatia – Loan book analysis Croatia geographical segment Croatia geographical segment Customer loans by Basel II customer segment Customer loans by currency 5.9 5.9 6.0 5.9 6.0 100% 0.2% 0.3% 0.2% 0.3% 0.2% 6 11.9% 11.5% 10.8% 10.9% 10.6% 0.7 0.7 0.8 0.8 0.8 80% in EUR billion 4 2.4 2
Slide 55: Retail & SME: Serbia – Sound operating performance
Retail & SME: Serbia – Sound operating performance − Operating result improved on higher NII − NII up on corporate loan growth and improved retail margins in EUR million 2013 2012 Change − Net trading result driven by FX development Net interest income 38.7 37.1 4.4% Net fee income 13.4 13.3 0.4% −
Slide 56: Retail & SME: Serbia – Loan book analysis
Retail & SME: Serbia – Loan book analysis Serbia geographical segment Serbia geographical segment Customer loans by Basel II customer segment Customer loans by currency 600 569.2 575.3 562.9 575.2 562.3 0.7% 0.7% 0.7% 0.7% 0.7% 3.4 2.8 2.7 2.9 2.4 100% 3.2% 3.0% 3.0% 2.9% 2.9% 80% in EUR million 258
Slide 57: Retail & SME: Ukraine – Deconsolidation as of April 2013
Retail & SME: Ukraine – Deconsolidation as of 29 April 2013 − Due to the deconsolidation following the sale of in EUR million 2013 2012 Change EB Ukraine, only the results of the first 3 months Net interest income 6.2 23.6 (73.6%) are included in 2013 Net fee income 1.2 6.2 (80.8%) Net trading resul
Slide 58: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 58
Slide 59: 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 60: Asset quality analysis – Loan book overview
Asset quality analysis – Loan book overview Customer loans by Basel II customer segments Customer loans by industries 150 131.9 130.3 129.8 129.5 127.7 7.8 7.5 7.3 7.4 6.5% 120 7.7 3.7% 2.8%3.0% 4.7% 40.1% in EUR billion 90 60.4 59.7 59.4 58.7 57.3 5.3% 60 12.6 12.4 12.3 12.4 12.3 4.4% 30 6.6% 51.2
Slide 61: Asset quality analysis – Loan book by segments
Asset quality analysis – Loan book by segments Management Low risk attention Substandard Non-performing Total loan book Risk provisions NPL coverage NPL ratio in EUR million Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Retail & SME 8
Slide 62: Asset quality analysis – Loan book by region (country of origination)
Asset quality analysis – Loan book by region (country of origination) Low risk Management Substandard Non-performing Total loan book attention in EUR million Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Share of total Share of total Core market 89,719 90,219 15,373 18,191 3,
Slide 63: Asset quality analysis – Total exposure by region (country of origination)
Asset quality analysis – Total exposure by region (country of origination) Low risk Management Substandard Non-performing Total Exposure attention in EUR million Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Dec 13 Dec 12 Share of total Share of total Core market 144,581 145,789 18,335 20,
Slide 64: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (31 Dec 2013: EUR 38.9 bn) (31 Dec 2013: EUR 38.9 bn) 2.8% 5.9% 1.8% 13.8% 2.8% 1.4% 0.8% 31.1% 9.4% 2.8% 5.0% 18.3% 2.5% 18.6% 14.6% 68.4% AT CZ SK US DE HU RO IT GB Other EUR CZK USD H
Slide 65: Balance sheet (IFRS) drill-down – Trading assets as of Dec 2013
Balance sheet (IFRS) drill-down – Trading assets as of 31 Dec 2013 − Increase of EUR 0.8 bn yoy mainly due to investments into sovereign bonds in EUR m Sovereign Banks Other Total Trading CZ 1,365 26.8% 0 0.0% 5 1.2% 1,370 23.1% SK 300 5.9% 0 0.0% 0 0.0% 300 5.1% RO 973 19.1% 6 1.4% 2 0.5% 980 16.5%
Slide 66: Balance sheet (IFRS) drill-down – Financial assets at fair value as of 31 Dec 2013
Balance sheet (IFRS) drill-down – Financial assets at fair value as of 31 Dec 2013 − Decline of EUR 187m yoy on reduction of sovereign bonds in EUR m Sovereign Banks Other Total FV CZ 78 67.1% 22 17.4% 21 7.2% 120 22.7% SK 27 23.3% 0 0.0% 12 4.1% 39 7.3% RO 5 4.1% 0 0.0% 3 0.9% 7 1.4% HU 0 0.0% 0 0.
Slide 67: Balance sheet (IFRS) drill-down – Financial assets available for sale
Balance sheet (IFRS) drill-down – Financial assets available for sale as of 31 Dec 2013 − Decline of EUR 1.4 bn yoy driven by reduction of sovereigns and banks in EUR m Sovereign Banks Other Total AFS CZ 2,147 17.0% 103 2.7% 27 0.7% 2,278 11.1% SK 1,756 13.9% 26 0.7% 27 0.7% 1,810 8.8% RO 1,219 9.7%
Slide 68: Balance sheet (IFRS) drill-down – Financial assets held-to-maturity
Balance sheet (IFRS) drill-down – Financial assets held-to-maturity as of 31 Dec 2013 − Financial assets HTM declined by EUR 1.2 bn yoy on sovereigns and banks in EUR m Sovereign Banks Other Total HTM CZ 4,638 29.3% 189 15.7% 21 2.7% 4,848 27.3% SK 3,753 23.7% 0 0.0% 72 9.6% 3,825 21.5% RO 2,391 15.
Slide 69: Drill-down on selected asset classes – Peripheral Europe exposure at manageable level
Drill-down on selected asset classes – Peripheral Europe exposure at manageable level Total net exposure of Erste Group (incl. savings banks) to selected European countries: in EUR million Sovereign Bank Other Total net exposure Dec 11 Dec 12 Dec 13 Dec 11 Dec 12 Dec 13 Dec 11 Dec12 Dec 13 Dec 11 De
Slide 70: Off-balance sheet items – Exclusively related to customer business
Off-balance sheet items – Exclusively related to customer business in EUR million Dec 2011 Dec 2012 Dec 2013 Guarantees and warranties 6,920 6,363 6,887 of which: in relation to corporate business 6,170 5,584 6,064 Undrawn lines, loan commitments, promissory notes 18,579 14,415 15,146 of which: in r
Slide 71: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 71
Slide 72: Key local entity data (IFRS, consolidated) – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 2013 2012 Change Cost/income ratio 42.0% 41.0% Rate and margin environment Return on equity 16.1% 19.2% Dec 13 Dec 12 80% 71.7% 72.5% 8% 69.4% 70.6% 69.8% Erste Group stake 99.0% Solvency ratio 17.7% 16.0% 60% 6% Em
Slide 73: Key local entity data (IFRS, consolidated) – Banca Comerciala Romana (BCR)
Key local entity data (IFRS, consolidated) – Banca Comerciala Romana (BCR) Key figures and ratios 2013 2012 Change Cost/income ratio 37.6% 41.6% Rate and margin environment Return on equity 8.4% na Dec 13 Dec 12 150% 140.6% 138.2% 139.0% 10% 131.1% 124.6% Erste Group stake 93.3% Solvency ratio 14.7%
Slide 74: Key local entity data (IFRS, consolidated) – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 2013 2012 Change Cost/income ratio 42.8% 42.1% Rate and margin environment Return on equity 15.2% 16.9% Dec 13 Dec 12 100% 8% Erste Group stake 100% 84.3% 81.1% 84.6% 84.6% 82.6% Solvency ratio 24.7% 21.2% 80% 6
Slide 75: Key local entity data (IFRS, consolidated) – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 2013 2012 Change Cost/income ratio 39.6% 38.9% Rate and margin environment Return on equity na na Dec 13 Dec 12 180% 12% Erste Group stake 100% 138.2% 133.5% 10% Solvency ratio 11.0% 11.7% 127.7% 127.6% 127.3% 135
Slide 76: Key local entity data (IFRS, consolidated) – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 2013 2013 Change Cost/income ratio 37.5% 38.3% Rate and margin environment Return on equity 2.7% 8.4% Dec 13 Dec 12 180% 6% 150.2% Erste Group stake 69.3% 150.0% 147.5% 146.6% 147.2% Solvency ratio 16.5% 17.4% 150
Slide 77: Key local entity data (IFRS, consolidated) – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 2013 2012 Change Rate and margin environment Cost/income ratio 62.7% 62.3% 120% 114.5% 20% Return on equity 6.9% 10.1% 104.0% Dec 13 Dec 12 96.2% 93.5% 100% 91.5% Erste Group stake 80.5% 15% Solvency ratio 21.0% 21
Slide 78: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 78
Slide 79: Strategy – A real customer need is the reason for all business
Strategy – A real customer need is the reason for all business Customer banking in Central and Eastern Europe Eastern part of EU Focus on CEE, limited exposure to other Europe Retail Corporate Capital Public Interbank banking banking markets sector business Focus on local Large, local corporate Focu
Slide 80: Strategy – Customer banking in the eastern part of the EU
Strategy – Customer banking in the eastern part of the EU Austria Czech Republic Slovakia − Leading retail and corporate bank Clients: 3.4m Clients: 5.3m Clients: 2.4m with 16.5m customers in 7 Retail loans: 19.0% Retail loans: 23.6% Retail loans: 25.8% geographically connected Retail dep.: 18.3% Re
Slide 81: Erste Group's intangible asset split – Software is biggest single item
Erste Group’s intangible asset split – Software is biggest single item Intangibles composition 5 4 in EUR billion 2.9 2.9 2.8 2.8 3 0.6 0.6 2.4 0.6 0.6 0.3 0.3 0.2 0.2 0.6 2 0.2 0.2 0.2 0.2 0.2 0.5 0.5 0.5 0.5 0.2 0.4 0.3 0.5 1 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.6 0.3 0.6 0.6 0.6 0.3 0 Q4 12 Q1 13 Q2 13
Slide 82: Erste Group historic financials – Quarterly income statement (IFRS)
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Net interest income 1,434.9 1,336.9 1,314.8 1,317.2 1,266.4 1,240.6 1,190.6 1,220.4 1,206.5 Net fee and commission income 435.2 430.3 435.2 418.8 436.5 448.2 447.7
Slide 83: Erste Group historic financials – Quarterly balance sheet (IFRS)
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Cash and balances with central banks 9,413 5,480 5,737 8,675 9,740 7,446 9,626 10,556 8,670 Loans and advances to credit institutions 7,578 13,403 13,311 11,
Slide 84: Quarterly segment reporting – Overview of operating segments
Quarterly segment reporting – Overview of operating segments in EUR million Retail & SME GCIB Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Net interest income 1,068.7 1,021.6 1,004.5 1,022.3 996.4 114.9 104.1 98.0 98.4 100.8 Risk provisions for loans and advances (394.7) (277.2) (322.
Slide 85: Quarterly segment reporting – Austria geographical segments
Quarterly segment reporting – Austria geographical segments in EUR million EB Oesterreich Savings banks Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Net interest income 150.3 151.4 146.6 155.3 157.2 238.3 220.0 219.5 235.2 233.6 Risk provisions for loans and advances (14.7) 2.5 (40.1)
Slide 86: Quarterly segment reporting – Central and Eastern Europe geographical segments (1)
Quarterly segment reporting – Central and Eastern Europe geographical segments (1) CEE - Details in EUR million Czech Republic Romania Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Net interest income 271.2 252.8 246.5 247.9 239.1 148.7 149.9 146.6 141.1 136.8 Risk provisions for loans
Slide 87: Quarterly segment reporting – Central and Eastern Europe geographical segments (2)
Quarterly segment reporting – Central and Eastern Europe geographical segments (2) CEE - Details in EUR million Croatia Serbia Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Net interest income 61.9 57.8 61.2 56.2 59.1 10.5 9.8 9.6 10.3 9.1 Risk provisions for loans and advances (29.8)
Slide 88: Group statistical data – Development of key financial ratios
Group statistical data – Development of key financial ratios in EUR million 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Dec 13 Tier 1 Capital pursuant to Austrian Banking Act 1.753 2.125 2.337 3.800 3.912 4.377 5.112 6.185 6.674 7.448 11.450 12.219 11.909 12.223 11.560 Tota
Slide 89: Presentation topics
Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure FY 2013 preliminary results 28 February 2014 presentation 89
Slide 90: Shareholder structure – Total number of shares: 429,800,000
Shareholder structure – Total number of shares: 429,800,000 By investor By region CaixaBank ERSTE Stiftung Other Austria 9.1% direct 2.9% Versicherungsv. 13.1% Privatstiftung Continental 4.1% ERSTE Stiftung Europe indirect* 26.2% 7.2% Employees Austria 1.5% 43.4% Retail investors 8.1% UK & Ireland I
Slide 91: 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: http://www.erstegroup.com/investorrelations http://twitter.com/ErsteGroupIR http://www.slideshare.net/Erste_Group Erste Group IR App for iPad, iPhon