Slide 1: Erste Bank – a successful start to 2003
> Erste Bank – a successful start to 2003 > Q1 2003 Results Teleconference Vienna 16 May 2003
Slide 2: Table of contents
> Table of contents Hosts Presentation Appendix Andreas Treichl, CEO 03 Key Group Ratios 23 Quarterly Balance Sheet 04 Key Group Performance 24 Quarterly P&L Reinhard Ortner, CFO Indicators 25 Key Financial Data Gabriele Werzer, IR 05 Key Figures for CE 26 Shareholder Structure Subsidiaries 27 Inves
Slide 3: Q1 2003 – Financial highlights
> Q1 2003 – Financial highlights Financial Highlights Erste Bank Group - Key ratios » Tier 1 ratio for Erste Bank Group 6.6% after 6.3% at YE 2002 » ROE 12.1%, after 12.7% at YE 2002 » Takes account of full effect of 2002 capital increase » Compared to ROE 15.7% at Q1 2002 equity increased by approx
Slide 4: Q1 2003 – Financial highlights: key performance indicators
> Q1 2003 – Financial highlights Financial Highlights Erste Bank Group – Key performance indicators Operating Profit » EUR 305.9 – up 6.2% when compared to 2002 quarterly average of EUR 287.9 » Operating income up by 2.6% on Q1 02 » Costs up 6.2% against below average costs in Q1 02 Net Profit » 75.
Slide 5: Key figures of EB subsidiaries in Central Europe
> Key figures of EB subsidiaries in Central Europe Highlights Q1 2003 Results (IFRS) Q1 03 Q1 02 Q1 03 Q1 02 Q1 03 Q1 02 Q1 03 Q1 02 Q1 03 Q1 02 Net Profit (EUR m) 1 56.8 30.4 24.1 8.0 3.1 0.5 2.7 3.0 6.0 n.a. ROE (%) 23.6 15.1 30.1 11.5 17.3 3.4 14.1 16.2 17.0 n.a. Cost / Income ratio (%) 61.9 60.6
Slide 6: Q1 2003 Financials
> Q1 2003 Financials > P&L > Balance sheet > Segment reporting
Slide 7: Q1 2003 EB Group Income Statement (IFRS)
> Q1 20003 EB Group Income Statement (IFRS) Q1 2003 Profit & Loss Accounts P&L EUR m Q1 2003 Q1 2002 % Change Net interest income 617.6 584.8 5.6 Risk provisions for loans and advances (97.2) (89.1) 9.1 Net commission income 228.9 244.0 (6.2) Net trading result 60.1 50.9 18.1 General administrative
Slide 8: Q1 2003 EB Group Balance Sheet (IFRS) – Assets
> Q1 2003 EB Group Balance Sheet (IFRS) Q1 2003 Balance Sheet Assets EUR m 31.3.2003 31.12.2002 % Change Cash and balances with central banks 2,650 3,181 (16.7) Loans and advances to credit institutions 16,535 15,492 6.7 Loans and advances to customers 64,970 64,435 0.8 Risk provisions for loans and
Slide 9: Q1 2003 EB Group Balance Sheet (IFRS) – Liabilities
> Q1 2003 EB Group Balance Sheet (IFRS) Q1 2003 Balance Sheet Liabilities EUR m 31.3.2003 31.12.2002 % Change Amounts owed to credit institutions 26,714 26,425 1.1 Amounts owed to customers 63,097 61,308 2.9 Debts evidenced by certificates 15,117 14,191 6.5 Provisions 5,722 5,488 4.3 Other liabiliti
Slide 10: P&L Details: Net interest income
> P & L Details Net interest income Q1 2003 Profit & Loss Accounts Remaining stable despite lower interest rates in CE » Group Net Interest Margin1 stable at 2.26% (2.28% in Q1 2002) » NII growth supported by valuation of interest rate derivatives and above average growth at SLSP and EB Hungary + 5.
Slide 11: P&L Details: Risk provisions
> P & L Details Risk provisions Q1 2003 Profit & Loss Accounts Up on last year, but in line with 2003 forecast » Increase of 9.1% year on year to EUR 97.2m » Down 4.3% compared to average quarter 2002 (EUR 101.6m) + 9.1% EUR m 97.2 » Austria – EUR 86.4m compared to 2002 quarterly average of EUR 90.8
Slide 12: P&L Details: Net commission income
> P & L Details Net commission income Q1 2003 Profit & Loss Accounts Positive contribution from CE, but Austrian markets affect overall result » EUR 228.9m, down 6.2% on Q1 02 due to continued weak securities business » Austria - decline of 9.3% » Q1 02 included a one-off commission income item at t
Slide 13: P&L Details: Net trading result
> P & L Details Net trading result Q1 2003 Profit & Loss Accounts Growth generated in all divisions » Group Net Trading Result up 18% to EUR 60.1m + 18.1% 60.1 » Austria – up 13.3% on Q1 02 » Positive contribution from securities and derivatives transactions EUR m 50.9 -0.6 60 » CE subsidiaries – in
Slide 14: P&L Details: General administrative expenses
> P & L Details General administrative expenses Q1 2003 Profit & Loss Accounts CE developments continue, but increase in costs controlled » Increase of 6.2% on Q1 02 to EUR 605.2m + 6.2% 605.1 » Q1 02 savings banks substantially lower than yearly average 570.0 EUR m 11.0 600 25.6 » Austria ex saving
Slide 15: P&L Details: Other operating result
> P & L Details Other operating result Q1 2003 Profit & Loss Accounts Improvement supported by favourable marked-to-market valuations » Improvement by 59.5% to minus EUR 22.6m Other CE » Q1 02 was marked by the first time application of IAS 39 Austria at the savings banks -22.6 » Positive revaluatio
Slide 16: EB Group - Q1 2003 Divisional Figures
> EB Group - Q1 2003 Divisional Figures Q1 2003 Divisionals Overview Austria CE Subsidiaries Int. Business Corp. Center TOTAL EB GROUP In EUR m Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Net interest income 395.5 370.5 193.9 176.6 31.2 38.5 (3.0) (0.9) 617.7 584.
Slide 17: EB Group - Q1 2003 Divisional Figures (2)
> EB Group - Q1 2003 Divisional Figures (2) Q1 2003 Divisionals Details - Austria Savings banks Retail & Real Est. Large Corp. Trading & Inv.B. TOTAL AUSTRIA In EUR m Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Net interest income 202.8 189.1 128.9 131.7 36.6 28.6
Slide 18: EB Group - Q1 2003 Divisional Figures (3)
> EB Group - Q1 2003 Divisional Figures (3) Q1 2003 Divisionals Details - CE subsidiaries CS SLSP EB Hungary Croatia 1 TOTAL CE In EUR m Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Q1 2003 Q1 2002 Net interest income 113.3 121.3 51.4 37.3 12.4 10.0 16.8 8.1 193.9 176.7 Risk provi
Slide 19: Ceská sporitelna: Q1 2003 Financial highlights
> Ceská sporitelna: Q1 2003 Financial highlights Strategic update CS - maintaining stable growth despite low interest rates » Revenues increased by 5.9% to CZK 6,051m (EUR 191m) with expenses up by 7.6% to CZK 3,737m (EUR 118m) » Deposits grew by 5.5% to CZK 422bn (EUR 13.3bn) despite conversion of
Slide 20: Slovenská sporitelna: Q1 2003 Financial Highlights
> Slovenská sporitel na: Q1 2003 Financial Highlights Strategic update SLSP – well on its way to reaching 2003 targets » Operating profit grew by 43% mainly supported by strong growth o f NII (+35%) and fee income (up 11%) offsetting a 17% increase in general administrative expenses. . » Improvement
Slide 21: Outlook and targets
> Outlook and targets Outlook The year ahead » Erste Bank confirms positive outlook and expectations of double- digit net profit growth for full year 2003 » Expenses expected to remain flat in the three main markets: EB Austria, CS and SLSP » Reduction of SME loan book underway: goal of EUR 1.5bn by
Slide 22: Appendix
> Appendix > Additional Financial information
Slide 23: Quarterly Balance Sheet (IFRS)
> Quarterly Balance Sheet (IFRS) Additional financial information Balance sheet details EUR m Q1'01 Q2'02 Q3'01 Q4'01 Q1'02 Q2'02 Q3'02 Q4´02 Q1'03 Total assets 80,114 82,327 81,485 86,033 117,684 121,068 124,797 121,222 125,081 Loans & advances credit inst. 22,879 22,579 20,341 21,485 21,372 21,175
Slide 24: Quarterly Results (IFRS)
> Quarterly Results (IFRS) Additional financial information P & L details EUR m Q1'01 Q2'01 Q3'01 Q4'01 Q1'02 Q2'02 Q3'02 Q4´02 Av '02 Q1'03 Net interest income 313 357 389 380 585 634 616 628 616 618 Risk provisions (48) (45) (55) (56) (89) (94) (89) (134) (102) (97) Net commission income 136 142 1
Slide 25: Full year 2002 results: key financial data
> Full year 2002 results Additional financial information Key financial data in EUR m YE 1998 YE 1999 YE 2000 YE 2001 YE 2002 1 Q1 2003 1 Tier 1 Capital pursuant to § Austrian Banking Act 1,611 1,753 2,125 2,337 3,800 3,967 Total own funds pursuant to § Austrian Banking Act 3,176 3,296 3,956 4,308 6
Slide 26: Current shareholder structure
> Current shareholder structure Additional information Total number of shares: 59,825,114 By Investor Type By Region Free float AVS Others 64.4% 35.6% 0.1% Continental Europe 12.6% UK & Ireland 11.6% North America 12.1% Employees Institutional investors 1.4% Austria 47.3% 63.7% Private investors Sav
Slide 27: Investor relations contacts
> Investor relations contacts Erste Bank, Graben 21, 1010 Vienna Fax: +43-(0) 50100-13112 E-mail: investor.relations@erstebank.at Internet: www.erstebank.com Reuters: ERST.VI Bloomberg: DESC AV Datastream: O:ERS Securities ID: 065201 Investor relations Gabriele Werzer Tel: +43 (0) 50100-11286 E-Mail