Slide 1: Erste Bank – improving operating results
> Erste Bank – improving operating results > H1 2003 Results Teleconference 20 August 2003 > Andreas Treichl, CEO Reinhard Ortner, CFO
Slide 2: H1 2003 – Financial highlights: Key ratios
> H1 2003 – Financial highlights Erste Bank Group - Key ratios » ROE 13.1% up from 12.7% at YE 2002 (12.1% in Q1 03) » Sound improvement even after increase in capital base » CIR at 64.4% down from 67.9% at YE 2002 (66.4% in Q1 03) » Moderate cost growth (+1.6%) and solid improvement in operating in
Slide 3: H1 2003 – Financial highlights: Key performance indicators
> H1 2003 – Financial highlights Erste Bank Group – Key performance indicators » Operating profit up 16.7% at EUR 676.6m » Significant improvement compared to Q1 03 » Strong results in the Austrian and International business segments (up 18%) » Positive operating performance from CE subsidiaries (up
Slide 4: H1 2003 – Update: Focus on Austria
> H1 2003 – Update Focus on Austria » IT integration with Savings Banks (SBs) finalised » Final migrations from SBs in October 2003 » Cost savings measures announced in Q3 2002 starting to show results » Personnel costs and administrative expenses down in Austria, International and Corporate Center
Slide 5: H1 2003 – Update: Highlights in CE
> H1 2003 – Update Highlights in CE » EB finalises strategic repositioning of insurance business » Sale of non-life business of Pojišt ovna Ceské sporitelny to Kooperativa pojišt ovna a.s. » Chooses Wiener Städtische, through subsidiary Kooperativa as preferred partner in non-life business in Czech
Slide 6: Key figures of EB subsidiaries in Central Europe
> Key figures of EB subsidiaries in Central Europe HY 2002 Results (IFRS) 2 EB stake 97.9% 67.2% 99.6% 77.3% HY 03 HY 02 HY 03 HY 02 HY 03 HY 02 HY 03 HY 02 Net Profit (EUR m) 107.2 102.3 33.9 10.6 5.9 0.6 16.5 16.3 ROE (%) 22.6 23.3 20.7 7.9 14.9 1.9 17.3 31.2 Cost / Income ratio (%) 62.0 59.3 47.4
Slide 7: Group Results
> Group Results > Group Income Statement Group Balance Sheet P&L Details Divisional Figures Outlook and Targets
Slide 8: EB Group Income Statement (IFRS)
> H1 2003 EB Group Income Statement (IFRS) EUR m HY 2003 HY 2002 % Change Net interest income 1,290.1 1,219.2 5.8 Risk provisions for loans and advances (205.9) (183.5) 12.2 Net commission income 481.9 469.5 2.6 Net trading result 114.6 89.6 27.9 General administrative expenses (1,222.9) (1,203.2) 1
Slide 9: EB Group Balance Sheet (IFRS) – Assets
> H1 2003 EB Group Balance Sheet (IFRS) Assets EUR m 30.6.2003 31.12.2002 % Change Cash and balances with central banks 2,721 3,181 (14.5) Loans and advances to credit institutions 18,146 15,492 17.1 Loans and advances to customers 65,358 64,435 1.4 Risk provisions for loans and advances (3,004) (2,
Slide 10: EB Group Balance Sheet (IFRS) – Liabilities
> H1 2003 EB Group Balance Sheet (IFRS) Liabilities EUR m 30.6.2003 31.12.2002 % Change Amounts owed to credit institutions 28,483 26,425 7.8 Amounts owed to customers 63,934 61,308 4.3 Debts evidenced by certificates 15,492 14,191 9.2 Provisions 5,872 5,488 7.0 Other liabilities 6,381 5,220 22.2 Su
Slide 11: P&L Details – Net interest income
> P & L Details - Net interest income Increase despite lower interest rate environment » Slight improvement of Group NIM1 to 2.33% (from 2.26% in Q1 03) Other » Quarterly split: Q1= EUR 617.6 m » NIM improved in SLSP and EBH, stable in Austrian business CE Q2= EUR 672.5 m and at EB Croatia and sligh
Slide 12: P&L Details – Risk provisions
> P & L Details – Risk provisions Better outlook for FY 03 » Increase of 12.2% yoy to EUR 205.8m » In line with forecasts for YE 2003 despite 12% increase Q2 on Other » Quarterly split: Q1 2003 Q1= EUR 97.2 m CE » Austria – increase of 12% on H1 2002 Q2=EUR 108.7 m Austria » Strong increase in provi
Slide 13: P&L Details – Net commission income
> P & L Details Net commission income Positive trends in Austria and CE » Up 2.6% to EUR 481.9m throughout the Group » Austria - up 4.2% yoy and up 18% compared to Q1 2003 Other » Quarterly split: Q1=EUR 228.9 m » Positive contribution from Savings banks (+13% to EUR 152.4m) CE Q2=EUR 253.0 m and Tr
Slide 14: P&L Details – Net trading result
> P & L Details Net trading result Growth generated by Austrian operations » Net trading result increased by 28% to EUR 114.7m Other » Quarterly split: Q1=EUR 60.1 m » Austria – up 61% compared to H1 02 CE Q2=EUR 64.5 m » Strong contribution from securities and derivatives transactions Austria and c
Slide 15: P&L Details – General administrative expenses
> P & L Details General administrative expenses First effects of cost control measures » Moderate (1.6%) increase of EB Group expenses to EUR 1,222.9m Other » Quarterly split: » Excluding depreciation, costs remained flat compared to H1 02 CE Q1=EUR 605.1 m Q2=EUR 618.0 m » Austria (including Intern
Slide 16: P&L Details – Other operating results
> P & L Details Other operating results Extraordinary effects at CE subsidiaries influence result » Increase by 11.8% to minus EUR 60.7m » Higher amortisation of Goodwill due to CS minority Other » Quarterly split: buyout and other smaller acquisitions in 2002 CE Q1=EUR 23 m Q2=EUR 24 m » Continued
Slide 17: EB Group Divisional Figures – Overview
> H1 2003 EB Group Divisional Figures Overview Austria CE Subsidiaries Int. Business Corp. Center TOTAL EB GROUP In EUR m HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 Net interest income 801.2 789.5 416.1 365.2 73.0 68.9 (0.3) (4.4) 1,290.1 1,219.3 Risk provisions
Slide 18: EB Group Divisional Figures – Austria
> H1 2003 EB Group Divisional Figures Details - Austria Savings banks Retail & Real Est. Large Corp. Trading & Inv.B. TOTAL AUSTRIA In EUR m HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 Net interest income 423.3 419.4 259.3 266.0 75.6 63.8 43.0 40.2 801.2 789.5 Ris
Slide 19: EB Group Divisional Figures – Central Europe
> H1 2003 EB Group Divisional Figures Details - Central Europe CS SLSP EB Hungary Croatia 1 TOTAL CE In EUR m HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 HY 2003 HY 2002 Net interest income 230.1 247.6 122.2 76.6 28.6 18.5 35.2 22.5 416.1 365.2 Risk provisions for loans and adv.
Slide 20: Outlook and targets
> Outlook and targets The year ahead » Erste Bank reiterates double digit forecast; increased confidence in achieving a minimum 20% increase in net profit at YE 2003 » Expenses » Reduction of personnel costs and other administrative expenses in Austria » CS and SLSP in line with budgets to achieve f
Slide 21: Appendix
> Appendix > Asset quality Overview of International exposure Quarterly income statement Quarterly balance sheet Key financial data Shareholder structure IR Contacts
Slide 22: Asset quality at EB Group
> Asset quality at EB Group Development at EB Group (including SBs) » Increase of total exposure by 7.8% mainly driven by receivables from Banking and Insurance » No major changes within the risk categories apart from an increase in the lowest risk category » Moderate (2.6%) increase in NPLs at EB G
Slide 23: Overview of international exposures – by region
> Overview of international exposures Credit Risk by regions at EB Group Low Risk Management Substandard Doubtful Total outstanding attention in EUR m HY 2003 FY 2002 HY 2003 FY 2002 HY 2003 FY 2002 HY 2003 FY 2002 HY 2003 FY 2002 share in % share in % Austria 47,135 48,241 9,321 9,213 3,570 3,723 3
Slide 24: Overview of international exposures – by industry sector
> Overview of international exposures Credit Risk by industry sectors at EB Group Low Risk Management Substandard Doubtful Total outstanding attention in EUR m HY 2003 FY 2002 HY 2003 FY 2002 HY 2003 FY 2002 HY 2003 FY 2002 HY 2003 FY 2002 share in % share in % Banking & insurance 41,931 31,936 719
Slide 25: EB Group Quarterly Results (IFRS)
> EB Group Quarterly Results (IFRS) P&L Details EUR m Q1'01 Q2'01 Q3'01 Q4'01 Q1'02 Q2'02 Q3'02 Q4´02 Q1'03 Q2'03 Net interest income 313 357 389 380 585 634 616 628 618 673 Risk provisions (48) (45) (55) (56) (89) (94) (89) (134) (97) (109) Net commission income 136 142 143 154 244 226 226 249 229
Slide 26: EB Group Quarterly Balance Sheet (IFRS)
> EB Group Quarterly Balance Sheet (IFRS) Balance Sheet Details EUR m Q1'01 Q2'02 Q3'01 Q4'01 Q1'02 Q2'02 Q3'02 Q4´02 Q1'03 Q2'03 Total assets 80,114 82,327 81,485 86,033 117,684 121,068 124,797 121,222 125,081 129,153 Loans & advances credit inst. 22,879 22,579 20,341 21,485 21,372 21,175 23,117 18
Slide 27: EB Group Quarterly Divisionals – Austria
> EB Group Quarterly Divisionals Austria - Details Savings Banks Retail & Real Estate In EUR m Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Net interest income 189.1 230.3 222.3 224.9 202.8 220.5 131.7 134.2 130.1 135.0 128.9 130.3 Risk provisions (30.3) (54.3) (42.5) (59.
Slide 28: EB Group Quarterly Divisionals – Central Europe
> EB Group Quarterly Divisionals Central Europe - Details Ceska sporitelna Slovenska sporitelna In EUR m Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Net interest income 121.3 126.3 113.6 116.2 113.3 116.9 37.3 39.3 36.8 47.8 51.4 70.7 Risk provisions (7.5) 18.5 7.7 4.4 2.
Slide 29: EB Group Quarterly Divisionals – Overview
> EB Group Quarterly Divisionals Overview International Business Corporate Center In EUR m Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Net interest income 38.5 30.4 34.3 31.5 31.2 41.9 (0.9) (3.5) (5.1) (8.1) (3.0) 2.8 Risk provisions (9.9) (9.5) (15.2) (17.3) (10.0) (7.2
Slide 30: Key financial data
> H1 2003 Results Key financial data in EUR m YE 1998 YE 1999 YE 2000 YE 2001 YE 2002 1 HY 2003 1 Tier 1 Capital pursuant to § Austrian Banking Act 1,611 1,753 2,125 2,337 3,800 3,921 Total own funds pursuant to § Austrian Banking Act 3,176 3,296 3,956 4,308 6,983 7,169 Risk weighted assets 26,488 2
Slide 31: Current shareholder structure
> Current shareholder structure By Investor Type By Region Austria Verein Others 6.1% Continental Europe 0.2% 10.9% Private investors AVS 8.4% 35.0% UK & Ireland 13.0% North America Employees 13.5% Institutional investors 1.7% 41.3% Savings banks 7.5% Free float Austria 58.9% 62.4% H1 2003 Results 3
Slide 32: Investor relations contacts
> Investor relations contacts Erste Bank, Graben 21, 1010 Vienna Fax +43 (0)5 0100-13112 E-mail: investor.relations@erstebank.at Internet: www.erstebank.com Reuters: ERST.VI Bloomberg: EBS AV Datastream: O:ERS Securities ID: 065201 Investor relations Gabriele Werzer Tel: +43 (0)5 0100-11286 E-Mail: