Erste Group Bank Ag · VIE:EBS
Erste Group Bank — H1 2020 Earnings Presentation
20 slides from Erste Group Bank's earnings presentation, Jul 31, 2020
Slide 1: Online press conference H1 2020 results
ERSTES Group ERSTES Group Online press conference H1 2020 results Bernd Spalt, CEO Stefan Dorfler, CFO Alexandra Habeler-Drabek, CRO Peter Bosek, Chief Retail Officer Ingo Bleier, Chief Corporates & Capital Markets Officer
Slide 2: 2
2
Slide 3: CEE Covid-19 evolution update
CEE Covid-19 evolution update In terms of virus spread, CEE is still among the least affected regions Active infections (per 1mn population) 6356 3504) 1657 269 1036 503 490 2 73 167 us a DE AT a Previous peak active infections Current active infections > Regionally diverging trends, overall virus s
Slide 4: Macroeconomic update
Macroeconomic update PiU CEE tackles Covid-19 challenge from a position of strength Unemployment rates (in %) Customer loans/GDP (in %) Loan/deposit ratios (in %) 19 159 101 92 25 124 m 68 67 u él aa ce 100% 28) 99 _96 | 98 10 10 4 ® 4s 70 3 | 66 @ ie ? ? 5 5/5 oe 2 = 8 3 26 3 2 AT a sk RO HU HR RS
Slide 5: Macroeconomic update
Macroeconomic update ERSTES Group Solid recovery expected in 2021, supported by improved demand and EU funds Covid-19 measures (% of GDP) 18 4 B 2 st AT Zz sk RO Hu* HR RS * HU: COVID-19 data as % of GDP includes Central Bank measures > Real GDP to decline by 4%-9% in 2020 in Erste core markets foll
Slide 6: Loans and customers helped in Covid-19 measures
more loans (YTD 1c, customers helped / : in Covid-19 é a E. since loc oo ns ‘eeemeasures ¥ f 7 OY arts We H , 9 \ . rt i
Slide 7: Customer loans up 2.2% YTD, deposits up 5.1% YTD
Business performance Customers loans up 2.2% YTD, deposits up 5.1% YTD Group AT/EBOe AT/SB CZ RO SK HU HR RS Customer loans (net; EUR bn) Sy 1:37 Customer deposits* (EUR bn) Sy 7 * Excluding lease liabilities ERSTES Group Loan-Deposit ratio (%) 69 1238 DEC 2019 @ JUNE 2020
Slide 8: Retail Banking
Retail Banking In times of physical Distancing Standing by our customers in challenging times: in branches and with George * We have proactively contacted over 3.4 mn retail clients during the crisis * George: always on for almost 6 mn customers Contactless payments revolution * Contactless payments
Slide 9: Corporates & Markets in times of lockdown
Corporates & Markets in times of lockdown Supporting a growing customer base Gross loan volume up 4.4% YTD EUR 55.2 bn Q2 2020 EUR 57.6 bn * Adding market share and growing client numbers in core markets: Organic growth strategy still delivers, despite slowdown in Q2 2020 « Large Corporates segment
Slide 10: We are helping to master the crisis and prepare for growth
to master is for growth Sal ad | We are hel the crisis and Managing working Capital & risks Securing liquidity & amending agreements 10
Slide 11: Temporary relief of capital and liquidity requirements
—" = Temporary relief of liquidity coverage ratio meme Sint, 2 capital minimum * requirements
Slide 12: Vigilant planning ahead for consequences of Covid-19 crisis triggers rise in risk costs
Business performance aL Vigilant planning ahead for consequences of Covid-19 crisis triggers rise in risk costs Risk costs: Absolute* (EUR mn) Risk costs: Relative* (in %) Group “ ors oes os AT/EBOe + a oo cue AT/SB aa “ 0.05 os? ws * Bs oes 094 RO * 35 a 020 gj K 19 ea oz 0.86 H U Bly a a 227 HR ma
Slide 13: Low NPL ratio and high coverage provide comfortable starting point
Business performance ERSTES Group Low NPL ratio and high coverage provide comfortable starting point for times to come NPL volume (EUR mn) Group AT/EBOe AT/SB Z 2 RO SK ae HU HR Soe RS 8 NPL ratio (%) NPL coverage (excl. collateral; %) 4a 25 71 408 24 m1 Bs 1s 963 1s 124 1870 DEC 2019 @ JUNE2020 13
Slide 14: ERSTES
ERSTES roup
Slide 15: Executive Summary
Executive Summary ERSTES Net profit declines on Covid-19 induced rise in risk costs YoY net profit reconciliation (EUR mn) -59,9% 294 18 1-619 Operating Operating Riskcosts Other Taxes on Minorities 1-6 20 income expenses result income 15
Slide 16: Net interest income rises 2.9% YoY despite Covid-19 lockdowns
Business performance a! Net interest income rises 2.9% YoY despite Covid-19 lockdowns Net interest income (in EUR mn) Net interest margin (in %) Group SS ei AT/EBOe |) es 2 ee AT/SB —— ———ae CZ eS 2: Ss RO a 220 Ss > SK 220 es 2 = HU a 10 — 2 HR —n 2: RS Et <_< >: H12019 @ 12020 16
Slide 17: Operating income impacted by trading result; continued cost discipline
Business performance ERSTES Group Operating income impacted by trading result; continued cost discipline Operating income (EUR mn) Cr -3.4% 7 3,593 3,472 nr 0) H12019 H12020 Net interest income @ Net trading result Net fee and commission income Other income Operating expenses (EUR mn) — -15% —71 2,1
Slide 18: Operating result down 6.2% YoY
Business performance aL Operating result down 6.2% YoY; Cost-Income ratio at 60.9% Operating result (EUR mn) Cost/Income ratio (in %) Group 1, Lr “ 20.9 AT/EBOe mau ee AT/SB me sno CZ 2 ma 507 RO i iso m0 SK e a3 HU HR oa 70 RS : or H12019 ® H12020 18
Slide 19: Record capital position with ample buffers, while continued dividend accrual for 2020
Business performance a! Record capital position with ample buffers, while continued dividend accrual for 2020 Common equity tier one capital ratio (CET1, Basel 3, fully loaded) y 135% 13.7% (ere 112% 114% 9.6% | 12.0% 12.8% 12.9% B 9.2% 94% DEC 2010 DEC 2011 DEC 2012 DEC 2013, DEC 2014 DEC 2015, DEC
Slide 20: 2020 Outlook
2020 Outlook Operating environment ERSTES Group ®@ COVID-19 lockdowns redefine macro outlook @ Real GDP decline of between 4 - 9% expected in 2020, followed by recovery in 2021 @ CEE-wide concerted fiscal mitigation efforts Business performance @ Challenged revenue outlook amid economic downturn, ra