Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q1 2013 Earnings Presentation
90 slides from Erste Group Bank's earnings presentation, Apr 29, 2013
Slide 1: Erste Group investor presentation – Q1 2013 results
Erste Group investor presentation – Q1 2013 results 29 April 2013 Risk costs decline, BCR improves Andreas Treichl, CEO, Erste Group Manfred Wimmer, CFO, Erste Group Gernot Mittendorfer, 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 – Risk costs decline, BCR improves
Executive summary – Risk costs decline, BCR improves • Net profit of EUR 176.2m supported by significant reduction in risk costs • Decline in net profit due to significant one-off income in Q1 12 (hybrid buyback) Income statement – • Operating result impacted by subdued loan demand and low interest
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 Q1 2013 results 29 April 2013 presentation 4
Slide 5: Operating environment: macro trends – CEE economies still in consolidation mode
Operating environment: macro trends – CEE economies still in consolidation mode − Growth mainly driven by exports while domestic Real GDP growth in Erste Group‘s core markets (in %) demand is still fragile 4.4 2010 2012 − Several countries following through with austerity 3.2 2011 2013e measures to
Slide 6: Operating environment: macro trends – What has happened in CEE in Q1 13?
Operating environment: macro trends – What has happened in CEE in Q1 13? − AT: fundamental economic position has remained excellent − Austria continuously outgrows the euro zone − Unemployment rate (4.8% as of February 2013) is the lowest in the entire European Union − Public debt and budget deficit
Slide 7: Key financial indicators – EPS and ROE without one-off effects
Key financial indicators – EPS and ROE without one-off effects YTD cost income ratio YTD net interest margin 53.8% 52.7% 50.8% 48.9% 48.3% 3.05% 2.86% 2.90% 2.87% 2.74% 1-3 09 1-3 10 1-3 11 1-3 12 1-3 13 1-3 09 1-3 10 1-3 11 1-3 12 1-3 13 Cash earnings per share** Cash return on equity** 0.83 11.8%
Slide 8: Income statement (IFRS): Q1 13 vs Q1 12
Income statement (IFRS): Q1 13 vs Q1 12 – Net profit driven by lower risk costs, lack of one-offs in EUR million 1-3 13 1-3 12 Change Comment Net interest income 1,240.6 1,336.9 (7.2%) Low interest rates, subdued loan demand Risk provisions for loans (402.2) (580.6) (30.7%) Significant reduction in
Slide 9: Income statement (IFRS) Q1 13 vs Q4 12
Income statement (IFRS) Q1 13 vs Q4 12 – Net profit driven by lower risk costs, lower other result in EUR million Q1 13 Q4 12 Change Comment Net interest income 1,240.6 1,266.4 (2.0%) Low interest rates, subdued loan demand Risk provisions for loans (402.2) (514.7) (21.9%) Risk costs down in HU, RO,
Slide 10: Balance sheet (IFRS) – Lower customer loans, stable RWAs
Balance sheet (IFRS) – Lower customer loans, stable RWAs in EUR million Mar 13 Dec 12 Change Comment Cash and balances with central banks 7,446 9,740 (23.6%) Loans and advances to credit institutions 11,964 9,074 31.8% Higher interbank activity Loans and advances to customers 130,335 131,928 (1.2%)
Slide 11: Balance sheet (IFRS) – Strong deposit base and capital position
Balance sheet (IFRS) – Strong deposit base and capital position in EUR million Mar 13 Dec 12 Change Comment Deposits by banks 20,678 21,822 (5.2%) LTRO repayment, higher interbank activity Customer deposits 123,124 123,053 0.1% Exclusion of Czech pension fund: EUR 1.7bn Debt securities in issue 29,8
Slide 12: Segment highlights – Improvement in EBOe and RO, solid result in CZ and SK
Segment highlights – Improvement in EBOe and RO, solid result in CZ and SK Top segment performers in Q1 13: Romania EB Oesterreich Czech Republic Slovakia in EUR million 1-3 13 1-3 12 ∆ 1-3 13 1-3 12 ∆ 1-3 13 1-3 12 ∆ 1-3 13 1-3 12 ∆ Operating income 194 200 (3%) 246 241 2% 372 412 (10%) 129 136 (5%
Slide 13: 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 Q1 2013 results 29 April 2013 presentation 13
Slide 14: BCR turnaround – Delivering against tough targets
BCR turnaround – Delivering against tough targets Key priorities The road to profitability in 2013 Key priority #1: • Absolute NPL volume to peak and modestly decline in 2013 • 5th consecutive quarter of improving NPL provisioning coverage, now at 59.3% Improve asset • Risk provisions expected to de
Slide 15: 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 Q1 2013 results 29 April 2013 presentation 15
Slide 16: Loan book review – Limited demand reflected in loan book
Loan book review – Limited demand reflected in loan book − Customer loans decreased by 1.2% ytd mainly Customer loans by main segments on reduction in retail & SME business − CEE: Decline led by Hungary (economic situation), but 150 134.8 133.9 133.5 131.9 130.3 limited demand also in most other cou
Slide 17: Asset quality review – NPL ratio ticks up as loan book declines
Asset quality review – NPL ratio ticks up as loan book declines, coverage stable − Overall slight NPL increase by 1.1% qoq Erste Group: NPL ratio vs NPL coverage − Increase stems mainly from GCIB and BCR − Increase in BCR partially because of lack of NPL sales 30% 63.1% 62.6% 65% 61.9% 62.4% − NPL r
Slide 18: Asset quality review – AT, CZ & SK improve, while RO stabilises
Asset quality review – AT, CZ & SK improve, while RO stabilises − Retail & SME/Austria: asset quality stable yoy NPL ratios in key segments − Risk costs further significantly reduced − NPL coverage ratio stable at 62%; increases of 30% 29.7% coverage in SME segment 25.9% 25% − Hungary: third consecu
Slide 19: Asset quality review – Risk costs further decreased both in AT and CEE
Asset quality review – Risk costs further decreased both in AT and CEE − Slovakia: further good quality loan growth − NPL ratio further declined to 5.9% Risk costs in key segments − Loan growth in the retail segment continues, mostly in mortgage business 8% − Czech Republic: portfolio relatively sta
Slide 20: 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 Q1 2013 results 29 April 2013 presentation 20
Slide 21: Funding update – Strong deposit performance in CZ, SK
Funding update – Strong deposit performance in CZ, SK − Strong underlying customer deposit inflows (ytd: Customer deposit trends by main segments +1.5%), especially in the Czech Republic − Reported figures remained flat ytd due to changed presentation 125 122.3 122.3 122.2 123.1 123.1 of Czech pensi
Slide 22: Funding update – Excess liquidity position underpins LTRO repayment
Funding update – Excess liquidity position underpins LTRO repayment − Short-term funding needs very well covered Evolution of funding mix − Investment in highly liquid assets led to rising collateral 100% 3.2% 3.0% 3.0% 2.7% 2.7% coverage of short-term funding needs 90% 8.5% 9.0% 8.2% 8.3% 8.4% 80%
Slide 23: 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 Q1 2013 results 29 April 2013 presentation 23
Slide 24: Capital position – Stable core tier 1 on flat RWAs despite switch to IFRS
Capital position – Stable core tier 1 on flat RWAs despite switch to IFRS Capital position (Mar 2013) Recent developments Capital development Core tier 1 ratio − Switch to IFRS in calculation of (total risk) qualifying capital as of Mar 13; 11.2% 11.2% CT1 (Basel 2.5) ratio 11.2% no material impact
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 Q1 2013 results 29 April 2013 presentation 25
Slide 26: Conclusion – Outlook
Conclusion – Outlook − Erste Group expects a slight improvement in economic performance for Central and Eastern Europe in H2 2013, even though growth will remain moderate − For 2013 Erste Group targets a stable operating result compared to 2012 − Slightly lower operating income as a result of modera
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 Q1 2013 results 29 April 2013 presentation 27
Slide 28: Segment review – Strongly improved profitability in retail & SME segment
Segment review – Strongly improved profitability in retail & SME segment Retail & SME GCIB Group Markets Corporate Center Total Group in EUR million 1-3 13 1-3 12 1-3 13 1-3 12 1-3 13 1-3 12 1-3 13 1-3 12 1-3 13 1-3 12 Net interest income 1,021.6 1,105.1 104.1 128.2 44.0 46.1 70.9 57.5 1,240.6 1,336
Slide 29: Region – Austria
Region – Austria EBOe’s and savings banks’ net profit up yoy Savings banks EB Oesterreich Austria in EUR million 1-3 13 1-3 12 1-3 13 1-3 12 1-3 13 1-3 12 Net interest income 220.0 240.9 151.4 161.7 371.4 402.6 Risk provisions for loans and advances (18.2) (51.3) 2.5 (31.4) (15.7) (82.7) Net fee and
Slide 30: 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 1-3 13 1-3 12 1-3 13 1-3 12 1-3 13 1-3 12 1-3 13 1-3 12 Net interest income 252.8 282.6 149.9 153.0 103.6 106.4 70.0 81.7 Risk provisions for loans and advanc
Slide 31: 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 1-3 13 1-3 12 1-3 13 1-3 12 1-3 13 1-3 12 1-3 13 1-3 12 Net interest income 57.8 64.1 9.8 8.7 6.2 6.0 650.1 702.5 Risk provisions for loans and advances (37.0) (32.2) (2.4) (2
Slide 32: Segment Retail & SME – Net profit up on lower risk costs
Segment Retail & SME – Net profit up on lower risk costs − Operating result down as reduced operating expenses in EUR million 1-3 13 1-3 12 Change did not fully offset decrease in operating income; qoq Net interest income 1,021.6 1,105.1 (7.6%) stable − Operating income decreased by 5.3% yoy Net fee
Slide 33: 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 120 114.4 114.2 114.4 113.6 112.2 100% 2.0% 2.2% 2.1% 1.7% 1.3% 6.7 6.4 6.3 6.6 6.4 13.1% 12.5% 11.5% 11.0% 10.6% 80% 21.4% 21.2% 90 21.6% 21
Slide 34: Segment GCIB excl IB – Net result declined on higher risk costs
Segment GCIB excl IB – Net result declined on higher risk costs and lower NII − Operating result declined on lower NII − NII declined mainly due to reduction of commercial real estate in EUR million 1-3 13 1-3 12 Change loans and decrease in the large corporate business in Austria Net interest incom
Slide 35: International Business (GCIB) – Improved result on reduced exposure
International Business (GCIB) – Improved result on reduced exposure − Reduction of business impacts International Business unit result in EUR million 1-3 13 1-3 12 Change − NII declined as a result of asset sales in 2012 Net interest income 13.6 22.8 (40.4%) − Trading result impacted by the negative
Slide 36: 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 5.4% 5.3% 100% 4.9% 5.4% 5.3% 19.8 1.6% 1.5% 1.5% 1.5% 1.3% 20 19.2 18.8 6.3% 6.0% 7.3% 6.9% 6.6% 1.3 1.2 17.9 17.7 80% 8.3% 8.2% 7.4% 7.0% 7.0% 1.2 in
Slide 37: Segment Group Markets – Net profit contribution down on lower trading result
Segment Group Markets – Net profit contribution down on lower trading result − Operating result declined substantially on lower net trading result in EUR million 1-3 13 1-3 12 Change − NII decreased yoy mainly due to money market and government Net interest income 44.0 46.1 (4.5%) bonds business, bu
Slide 38: Segment Corporate Center – 2012 results impacted by one-offs
Segment Corporate Center – 2012 results impacted by one-offs − What is in the Corporate Center? − This segment includes the intragroup consolidation between in EUR million 1-3 13 1-3 12 Change segments and sub-segments, the results of those sub-segments Net interest income 70.9 57.5 23.3% that canno
Slide 39: Retail & SME: Austria/EB Oesterreich – Net profit up
Retail & SME: Austria/EB Oesterreich – Net profit up on strong operating result & lower risk costs − Operating result improved year-on-year by 6.1% − NII decreased as a result of the low interest rate environment in EUR million 1-3 13 1-3 12 Change − Fee income increased yoy on improved securities b
Slide 40: Retail & SME: Austria/EB Oesterreich – Loan book analysis
Retail & SME: Austria/EB Oesterreich – Loan book analysis Sub-Segment EB Oesterreich - Sub-Segment EB Oesterreich - Customer loans by Basel II customer segment Customer loans by currency 30 28.1 28.2 28.2 28.1 27.8 100% 1.8% 1.9% 1.9% 1.6% 1.5% 1.8 1.8 1.8 1.8 1.8 13.6% 12.5% 11.8% 11.3% 14.2% in EU
Slide 41: Retail & SME: Austria/Savings banks – Increased net profit on lower risk costs
Retail & SME: Austria/Savings banks – Increased net profit on lower risk costs − Operating result decreased year-on-year due to weaker net interest income in EUR million 1-3 13 1-3 12 Change − NII decreased as a result of the lower interest rate environment Net interest income 220.0 240.9 (8.7%) − N
Slide 42: Retail & SME: Austria/Savings banks – Loan book analysis
Retail & SME: Austria/Savings banks – Loan book analysis Sub-Segment Savings Banks - Sub-Segment Savings banks - Customer loans by Basel II customer segment Customer loans by currency 40 37.4 37.6 37.7 37.7 37.3 100% 3.4% 3.6% 3.5% 3.3% 2.3% 1.6 1.6 1.6 1.7 1.6 18.5% 17.1% 15.5% 14.5% 13.8% 30 80% i
Slide 43: Retail & SME: Czech Republic – Improved cost base but lower operating income
Retail & SME: Czech Republic – Improved cost base but lower operating income − Operating result declined yoy − NII down due to low interest rate environment and subdued loan in EUR million 1-3 13 1-3 12 Change demand and on changed reporting methodology for the pension Net interest income 252.8 282.
Slide 44: Retail & SME: Czech Republic – Loan book analysis
Retail & SME: Czech Republic – Loan book analysis Sub-Segment Czech Republic - Sub-Segment Czech Republic - Customer loans by Basel II customer segment Customer loans by currency 20 17.8 17.8 17.9 0.2% 0.2% 0.2% 0.2% 0.2% 17.3 17.5 100% 3.9% 0.7 0.6 0.7 3.4% 3.8% 3.4% 3.5% 0.6 0.7 16 5.5 5.7 5.7 5.5
Slide 45: Retail & SME: Romania – Restructuring well under way
Retail & SME: Romania – Restructuring well under way, strong decline in risk costs − Operating result improved yoy on lower operating expenses in EUR million 1-3 13 1-3 12 Change − NII decreased yoy but increased qoq (3rd consecutive Net interest income 149.9 153.0 (2.0%) quarterly increase) Net fee
Slide 46: Retail & SME: Romania – Loan book analysis
Retail & SME: Romania – Loan book analysis Sub-Segment Romania - Sub-Segment Romania - Customer loans by Basel II customer segment Customer loans by currency 12 11.1 11.0 10.8 100% 1.7% 1.7% 1.4% 1.3% 1.4% 10.7 10.5 1.2 1.0 1.0 1.2 1.2 80% 9 in EUR billion 4.5 61.1% 61.3% 61.7% 61.2% 60.8% 4.4 4.4 4
Slide 47: Retail & SME: Slovakia – Solid operating performance continues
Retail & SME: Slovakia – Solid operating performance continues − Operating result declined − NII declined on lower margins and liquidity surplus invested in in EUR million 1-3 13 1-3 12 Change lower yielding assets Net interest income 103.6 106.4 (2.6%) − Fee income decreased due to the cancellation
Slide 48: Retail & SME: Slovakia – Loan book analysis
Retail & SME: Slovakia – Loan book analysis Sub-Segment Slovakia - Sub-Segment Slovakia - Customer loans by Basel II customer segment Customer loans by currency 8 6.4 6.6 6.7 100% 0.1% 0.2% 0.1% 0.2% 0.1% 6.3 6.3 0.2 0.2 0.2 0.2 6 0.3 1.3 1.3 80% in EUR billion 1.2 1.3 1.3 0.3 0.3 0.3 0.3 0.3 4 60%
Slide 49: Retail & SME: Hungary – Challenging environment continues to impact results
Retail & SME: Hungary – Challenging environment continues to impact results − Operating result down due to lower business volumes − NII declined on portfolio reduction, lower margins and subdued in EUR million 1-3 13 1-3 12 Change loan demand Net interest income 70.0 81.7 (14.3%) − Fee income increa
Slide 50: Retail & SME: Hungary – Loan book analysis
Retail & SME: Hungary – Loan book analysis Sub-Segment Hungary - Sub-Segment Hungary - Customer loans by Basel II customer segment Customer loans by currency 10 100% 0.2% 0.2% 0.1% 0.1% 0.0% 8 22.3% 21.2% 22.0% 21.2% 23.1% 6.9 6.8 6.5 80% 0.4 6.2 in EUR billion 0.4 0.3 5.9 6 0.3 0.3 2.1 2.0 1.9 60%
Slide 51: Retail & SME: Croatia – Increase in risk costs leads to lower net profit
Retail & SME: Croatia – Increase in risk costs leads to lower net profit − Operating result decreased − NII declined mainly due to lower margins and higher NPL in EUR million 1-3 13 1-3 12 Change volumes Net interest income 57.8 64.1 (9.9%) − Fee income down on cancellation of reminder fees Net fee
Slide 52: Retail & SME: Croatia – Loan book analysis
Retail & SME: Croatia – Loan book analysis Sub-Segment Croatia - Sub-Segment Croatia - Customer loans by Basel II customer segment Customer loans by currency 6.0 6.0 5.9 5.9 5.9 6 100% 0.2% 0.3% 0.2% 0.2% 0.3% 0.7 0.7 0.6 0.7 0.7 12.8% 12.6% 12.2% 11.9% 11.5% 80% in EUR billion 4 2.5 2.5 2.5 2.4 2.4
Slide 53: Retail & SME: Serbia – Operating performance and net result improved
Retail & SME: Serbia – Operating performance and net result improved − Operating result improved on higher NII − NII up by 12.4% yoy on retail and corporate loan growth in EUR million 1-3 13 1-3 12 Change − Margins in retail deposits developed positively Net interest income 9.8 8.7 12.4% − Fee incom
Slide 54: Retail & SME: Serbia – Loan book analysis
Retail & SME: Serbia – Loan book analysis Sub-Segment Serbia - Sub-Segment Serbia - Customer loans by Basel II customer segment Customer loans by currency 600 569.2 575.3 0.9% 0.9% 0.8% 0.7% 0.7% 539.2 3.4 2.8 100% 3.8% 3.8% 3.3% 3.2% 3.0% 482.4 481.0 4.3 3.4 3.6 80% in EUR million 400 334.7 360.1 3
Slide 55: Retail & SME: Ukraine – Improved operating cost base but higher risk costs
Retail & SME: Ukraine – Improved operating cost base but higher risk costs − Net loss on weaker operating result, despite improved in EUR million 1-3 13 1-3 12 Change NII and lower operating costs Net interest income 6.2 6.0 3.7% − Net interest income slightly up as reduction of average interest bea
Slide 56: 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 Q1 2013 results 29 April 2013 presentation 56
Slide 57: 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 58: Asset quality analysis – Loan book overview
Asset quality analysis – Loan book overview Customer loans by Basel II customer segments Customer loans by industries 150 134.8 133.9 133.5 131.9 130.3 8.0 7.6 7.5 7.8 7.5 5.9% 120 3.0%3.7% 2.7% 4.9% 39.6% in EUR billion 62.5 62.3 61.8 60.4 59.7 5.2% 90 60 13.0 12.9 12.8 12.6 12.4 4.5% 30 6.9% 51.3
Slide 59: 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 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Retail & SME 82,496 83,171 15
Slide 60: Asset quality analysis – Loan book by region
Asset quality analysis – Loan book by region (country of origination) Low risk Management Substandard Non-performing Total loan book attention in EUR million Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Share of total Share of total Core market 89,292 90,219 17,420 18,191 3,
Slide 61: Asset quality analysis – Total exposure by region
Asset quality analysis – Total exposure by region (country of origination) Low risk Management Substandard Non-performing Total Exposure attention in EUR million Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Mar 13 Dec 12 Share of total Share of total Core market 144,993 145,789 20,082 20,
Slide 62: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (31 Mar 2013: EUR 40.9 bn) (31 Mar 2013: EUR 40.9 bn) 4.5% 5.5% 2.2% 14.5% 28.5% 3.1% 1.0%1.3% 8.0% 4.4% 4.6% 3.0% 20.0% 19.9% 14.7% 64.7% AT CZ SK US DE HU RO IT GB Other EUR CZK USD HU
Slide 63: Balance sheet drill-down – Trading assets
Balance sheet (IFRS) drill-down – Trading assets as of 31 March 2013 − Increase of EUR 1.3 bn due to increased investments into sovereign bonds in EUR m Sovereign Banks Other Total Trading CZ 2,188 39.7% 0 0.0% 10 1.7% 2,198 33.8% SK 234 4.2% 0 0.0% 0 0.0% 234 3.6% RO 782 14.2% 3 0.7% 0 0.1% 785 12.
Slide 64: Balance sheet drill-down – Financial assets at fair value
Balance sheet (IFRS) drill-down – Financial assets at fair value as of 31 March 2013 − Decline of EUR 59 mn driven by reduction of bank exposure in EUR m Sovereign Banks Other Total FV CZ 147 60.5% 25 16.1% 67 25.7% 239 36.3% SK 28 11.4% 0 0.0% 10 4.0% 38 5.8% RO 5 2.1% 0 0.0% 5 1.7% 10 1.5% HU 0 0.
Slide 65: Balance sheet drill-down – Financial assets available for sale
Balance sheet (IFRS) drill-down – Financial assets available for sale as of 31 March 2013 − Ytd decline of AfS portfolio of EUR 1.1 bn due to changed presentation of Czech pension fund in EUR m Sovereign Banks Other Total AFS CZ 1,280 10.0% 103 2.5% 8 0.2% 1,391 6.6% SK 2,472 19.4% 43 1.0% 26 0.6% 2
Slide 66: Balance sheet drill-down – Financial assets held-to-maturity
Balance sheet (IFRS) drill-down – Financial assets held-to-maturity as of 31 March 2013 − Financial assets HTM remained flat in EUR m Sovereign Banks Other Total HTM CZ 6,332 37.9% 203 13.0% 25 3.3% 6,560 34.5% SK 3,428 20.5% 2 0.1% 24 3.2% 3,454 18.2% RO 2,388 14.3% 2 0.2% 0 0.0% 2,390 12.6% HU 1,2
Slide 67: Drill-down on selected asset classes – Peripheral Europe exposure
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 Mar 13 Dec 11 Dec 12 Mar 13 Dec 11 Dec12 Mar 13 Dec 11 De
Slide 68: Off-balance sheet items – Exclusively related to customer business
Off-balance sheet items – Exclusively related to customer business in EUR m illion 2011 2012 Mar-13 Guarantees and warranties 6,920 6,363 6,285 of which: in relation to corporate business 6,170 5,584 5,548 Undrawn lines, loan commitments, promissory notes 18,579 14,415 14,345 of which: in relation t
Slide 69: 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 Q1 2013 results 29 April 2013 presentation 69
Slide 70: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-3 13 1-3 12 Change Rate and margin environment Cost/income ratio 41.5% 40.8% Return on equity 17.5% 21.6% 80% 69.8% 69.7% 70.1% 69.4% 70.7% 8% Mar 13 Dec 12 Erste Group stake 99.0% 60% 6% Solvency ratio 15.5% 16.0
Slide 71: Key local entity data – Banca Comerciala Romana (BCR)
Key local entity data (IFRS, consolidated) – Banca Comerciala Romana (BCR) Key figures and ratios 1-3 13 1-3 12 Change Rate and margin environment Cost/income ratio 38.5% 40.7% Return on equity na na 150% 136.2% 140.0% 140.8% 140.6% 138.2% 15% Mar 13 Dec 12 Erste Group stake 93.3% 12% Solvency ratio
Slide 72: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 1-3 13 1-3 12 Change Rate and margin environment Cost/income ratio 41.8% 40.6% Return on equity 13.8% 19.0% 100% 8% 83.6% 82.0% 84.3% 81.1% Mar 13 Dec 12 Change 79.5% Erste Group stake 100% 80% 6% Solvency ratio
Slide 73: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-3 13 1-3 12 Change Rate and margin environment Cost/income ratio 41.5% 35.3% Return on equity na na 270% 12% Mar 13 Dec 12 Change Erste Group stake 100% 10% 177.6% 165.7% Solvency ratio 11.6% 11.7% 180% 8% 146.1
Slide 74: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 1-3 13 1-3 13 Change Rate and margin environment Cost/income ratio 37.9% 39.1% Return on equity 6.5% 9.2% 180% 153.9% 6% 154.9% 147.0% 150.2% 150.0% Mar 13 Dec 12 Erste Group stake 69.3% 150% Solvency ratio 17.4%
Slide 75: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 1-3 13 1-3 12 Change Rate and margin environment Cost/income ratio 61.9% 63.6% 109.6% 114.5% Return on equity 8.0% 8.5% 120% 105.3% 106.3% 20% Mar 13 Dec 12 98.4% Erste Group stake 80.5% 100% 12.7% 15% Solvency rat
Slide 76: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 1-3 13 1-3 12 Change Rate and margin environment Cost/income ratio 147.0% 100.9% Return on equity na na 500% 30% Mar 13 Dec 12 400% 25.0% 25% Erste Group stake 100% Solvency ratio 17.9% 18.0% 23.3% 23.5% 20% 300%
Slide 77: 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 Q1 2013 results 29 April 2013 presentation 77
Slide 78: 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 79: 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: 3.3m Clients: 5.3m Clients: 2.4m with 16.9m customers in 8 Retail loans: 19.0% Retail loans: 23.7% Retail loans: 26.7% Retail dep.: 18.4% Retail dep.: 27.5% Retail d
Slide 80: Erste Group's intangible asset split
Erste Group’s intangible asset split – BCR goodwill and Software are single biggest intangibles Intangibles composition 5 4 3.5 in EUR billion 3.2 3.2 0.6 2.9 2.9 3 0.6 0.6 0.3 0.6 0.6 0.2 0.3 0.3 0.5 0.2 0.2 0.3 0.3 2 0.5 0.2 0.2 0.5 0.4 0.5 0.5 0.3 0.4 0.4 1 0.3 0.3 0.4 0.3 0.3 0.3 1.1 0.9 0.8 0.6
Slide 81: Erste Group historic financials – Quarterly income statement (IFRS)
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Net interest income 1,302.0 1,401.9 1,430.2 1,434.9 1,336.9 1,314.8 1,317.2 1,266.4 1,240.6 Net fee and commission income 455.2 450.9 445.9 435.2 430.3 435.2 418.8
Slide 82: Erste Group historic financials – Quarterly balance sheet (IFRS)
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Cash and balances with central banks 5,043 6,605 5,743 9,413 5,480 5,737 8,675 9,740 7,446 Loans and advances to credit institutions 16,471 13,373 13,559 7,5
Slide 83: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME GCIB Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Net interest income 1,105.1 1,087.0 1,057.7 1,068.7 1,021.6 128.2 129.0 123.8 114.9 104.1 Risk provisions for loans and advances (505.4) (329.3) (400.0
Slide 84: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million EB Oesterreich Savings banks Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Net interest income 161.7 150.5 155.3 150.3 151.4 240.9 235.8 225.0 238.3 220.0 Risk provisions for loans and advances (31.4) (22.9) (27.2) (14.7
Slide 85: Quarterly segment reporting – CEE sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) CEE - Details in EUR million Czech Republic Romania Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Net interest income 282.6 288.0 272.0 271.2 252.8 153.0 131.3 139.4 148.7 149.9 Risk provisions for loans and adva
Slide 86: Quarterly segment reporting – CEE sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) CEE - Details in EUR million Croatia Serbia Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Net interest income 64.1 64.8 62.9 61.9 57.8 8.7 9.4 8.5 10.5 9.8 Risk provisions for loans and advances (32.2) (38.8) (36
Slide 87: 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 Mar 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 12,184 Tota
Slide 88: 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 Q1 2013 results 29 April 2013 presentation 88
Slide 89: Shareholder structure – Total number of shares: 394,568,647
Shareholder structure – Total number of shares: 394,568,647 By investor By region CaixaBank Other Austria ERSTE 2.9% Versicherungsv. 9.9% Privatstiftung Stiftung 20.1% Continental 4.4% Europe 27.4% Savings banks* Austria 4.2% 45.6% Employees 3.0% Retail investors 5.8% UK & Ireland Institutional 5.7%
Slide 90: 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