Erste Group Bank Ag · VIE:EBS

Erste Group Bank — FY2007 Earnings Presentation

25 slides from Erste Group Bank's earnings presentation, Feb 29, 2008

  1. Slide 1: FY 2007 results presentation Erste Bank-Group

    ERSTE GROUP FY 2007 results presentation Erste Bank-Group 29 February 2008, Vienna

  2. Slide 2: Share price development

    - 10,00 20,00 30,00 40,00 50,00 60,00 70,00 in EUR 01.01.2007 01.02.2007 01.03.2007 01.04.2007 01.05.2007 EUR 61.5 27 April 07: Share price development 01.06.2007 01.07.2007 01.08.2007 01.09.2007 01.10.2007 01.11.2007 01.12.2007 01.01.2008 01.02.2008 EUR 34.35 08 Feb. 08: ERSTE GROUP

  3. Slide 3: Overview of key figures

    Overview of key figures ERSTE GROUP Net interest income + 23.7% to EUR 3.945,8 million Net commission income + 28.5% to EUR 1.857,9 million Operating income + 25.1% to EUR 6.189,8 million General and administrative + 23.7% to EUR 3.642,1 million expenses Operating result + 27.2% to EUR 2.547,7 milli

  4. Slide 4: Overview of key figures

    Overview of key figures ERSTE GROUP Pre-tax profit + 26.6% to EUR 1,927.6 million Net profit after tax + 26.0% to EUR 1,174.7 million Total assets + 10.4 % to EUR 200.5 billion Core capital ratio 7.0 % Dec. 2006: 6.6 % 4

  5. Slide 5: Financial Highlights 2007

    Financial Highlights 2007 ERSTE GROUP Cash earnings per share * 4.5 3.92 4.0 3.5 2.98 3.14 3.76 3.0 in EUR 2.5 2.18 1.83 2.0 1.5 1.0 0.5 0.0 2003 2004 2005 2006 2007 Cost/income ratio Cash return on equity * 70% 25% 19.5% 20% 17.0% 64.2% 64.1% 16.6% 65% 14.6% 15% 13.8% 61.7% 14.1% 59.5% 10% 60% 58.8

  6. Slide 6: Q4 2007 operating highlights

    Q4 2007 operating highlights ERSTE GROUP Operating income per quarter + 11.6% yoy* 1,667 3 1,600 1,509 1,531 59 1,400 1,438 90 11 1,483 125 16 95 14 72 3 + 4.8% qoq* Strong operating performance supported by 504 1,200 446 469 contained cost growth in EUR million 409 439 1,000 Operating expenses incr

  7. Slide 7: Tier 1 ratio at record level

    Tier 1 ratio at record level ERSTE GROUP in EUR million 8000 7000 6,674*) 6,185 6000 5,112 5000 4,377 3,912 Core capital ratio 4000 Therefrom Hybrid capital (Tier 1) 3000 2000 1,250 1,248 900 1000 605 711 0 2003 2004 2005 2006 2007

  8. Slide 8: Erste Bank-Group – Balance sheet and income statement 2007

    ERSTE GROUP Erste Bank-Group – Balance sheet and income statement 2007

  9. Slide 9: Balance sheet (assets)

    Balance sheet (assets) ERSTE GROUP in EUR million Dez 07 Dez 06 Change Cash and balances with central banks 7,615 7,378 3.2% Loans and advances to credit institutions 14,937 16,616 (10.1%) Loans and advances to customers 113,956 97,107 17.4% Risk provisions for loans and advances (3,296) (3,133) 5.2

  10. Slide 10: Development Customer loans CEE

    Development Customer loans CEE ERSTE GROUP in EUR million 18.000 15,713 16.000 (+31.2%) 14.000 11,974 (+22.5%) 10,921 12.000 (+41.0%) 10.000 8.000 7,748 5,986 (+15.3%) 5,190 4,668 6.000 (+33.0%)3,716 (+24.1%) (+47.0%) 3,637 4.000 3,091 (+17.7%) (+18.6%) 2.000 146 261 (+14.7%) (+78.8%) 2006 2007 CS E

  11. Slide 11: Balance sheet (liabilities and shareholders' equity)

    Balance sheet (liabilities and shareholders' equity) ERSTE GROUP in EUR million Dez 07 Dez 06 Change Amounts owed to credit institutions 35,165 37,688 (6.7%) Amounts owed to customers 100,116 90,849 10.2% Debt securities in issue 31,078 21,814 42.5% Trading liabilities 1,756 1,200 46.3% Underwriting

  12. Slide 12: 2007 income statement according to IFRS

    2007 income statement according to IFRS ERSTE GROUP in EUR million 2007 2006 Change Net interest income 3,945.8 3,189.3 23.7% Risk provisions for loans and advances (454.7) (439.1) 3.6% Net fee and commission income 1,857.9 1,445.9 28.5% Net trading result 351.1 277.9 26.4% General administrative ex

  13. Slide 13: Core segments – CEE contribution strongly increases due to BCR

    Core segments – CEE contribution strongly increases due to BCR ERSTE GROUP Austria CEE Int'l Business Corp. Center Total in EUR million 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 Net interest income 1,649.5 1,592.9 2,140.3 1,444.3 152.7 149.0 3.3 3.2 3,945.8 3,189.4 Risk provisions (225.2) (3

  14. Slide 14: Core segment – Austria

    Core segment – Austria Target achieved: Retail & Mortgage net profit up 15% ERSTE GROUP Savings Banks Retail & Mortgage Large Corporates Treasury & IB Austria in EUR million 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 Net interest income 864.6 839.7 552.8 537.3 177.6 147.6 54.5 68.3 1,649.5 1,

  15. Slide 15: Core segment Central and Eastern Europe (1)

    Core segment Central and Eastern Europe (1) – Strong performance of CEE subsidiaries … ERSTE GROUP Czech Republic Romania Slovakia Hungary in EUR million 2007 2006 2007 2006 2007 2006 2007 2006 Net interest income 834.9 705.6 568.2 127.8 300.5 239.5 253.2 251.2 Risk provisions (70.7) (52.5) 25.4 (8.

  16. Slide 16: Core segment Central and Eastern Europe (2)

    Core segment Central and Eastern Europe (2) – … across the board ERSTE GROUP Croatia Serbia Ukraine CEE in EUR million 2007 2006 2007 2006 2007 2006 2007 2006 Net interest income 159.2 111.1 16.2 9.2 8.0 0.0 2,140.3 1,444.3 Risk provisions (17.8) (12.3) 0.1 (3.3) (10.3) 0.0 (170.2) (126.9) Net fee a

  17. Slide 17: Erste Bank-Group – Outlook & Targets

    Erste Bank-Group – Outlook & Targets ERSTE GROUP 2008: > 20% Net profit growth 2009: > 25% Cost/income ratio Below 55% in 2009 Return on equity 18 - 20% in 2009 17

  18. Slide 18: Macro data Eurozone vs. CEE

    ERSTE GROUP Macro data Eurozone vs. CEE

  19. Slide 19: Economic growth

    Economic growth ERSTE GROUP GDP growth 07e 08e 09e US +2.3% +2.3% +2.6% CEE1) +5.3% +4.5% +4.6% Euroland +2.6% +2.1% +2.3% Growth in CEE is twice as high as in the Eurozone Source: Erste Bank Group Research, 1) CEE weighted average

  20. Slide 20: Long-term outlook CEE

    Long-term outlook CEE ERSTE GROUP 3 reasons why economic growth is expected to be above EU average for Unit Labor Costs, (Germany = 100) many years to come: Bulgaria Romania 1. Low wages in relation to Slovakia productivity (= Unit Labour Costs) offer Poland a competitive advantage. Hungary Czech Re

  21. Slide 21: High potential within the credit business…

    High potential within the credit business… ERSTE GROUP Total loan volumes in CEE + SEE are 7-40 times lower than those in Austria 50 46.0 Loans to Non-Financial Sector 40 per Capita in € (2007 estimate) in E UR thousand 30 Developing transformation Emerging 20 economies transformation economies 10 6

  22. Slide 22: … and in the deposit business

    ERSTE GROUP … and in the deposit business Total deposits per capita in CEE + SEE are 5-30 times lower than in Austria Deposits from Non-Financial Sector per Capita in € (2007 estimate) 40 36.0 30 Developing in EUR thousand transformation Emerging 20 economies transformation economies 10 8.0 4.6 5.0

  23. Slide 23: Erste Bank-Group in a rapidly growing CEE-market

    Erste Bank-Group in a rapidly growing CEE-market ERSTE GROUP Czech R: #1 Clients: 5.3m Slovakia: # 1 Retail loans: 31% Clients: 2.5m Retail dep.: 32% Retail loans: 25% Austria: #2 Branches: 636 Retail dep.: 31% Clients: 2.8m Ukraine Branches: 273 Retail loans: 19% Clients: 0.1m Retail dep.: 19% Reta

  24. Slide 24: Shareholder structure

    Shareholder structure ERSTE GROUP By investor groups By regions Austria Verein Others Continental 4.9% DIE ERSTE 2.7% Europe österreichische Spar- Casse Privatstiftung 11.7% 30.5% UK & Ireland 12.7% Austria Institutional investors 53.8% 47.1% Employees 3.0% Savings banks North America 6.7% 19.1% Pri

  25. Slide 25: 8 countries – more than 16m customers – one banking group

    ERSTE GROUP 8 countries – more than 16 m customers – one banking group 25

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