Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q3 2020 Earnings Presentation
9 slides from Erste Group Bank's earnings presentation, Nov 2, 2020
Slide 1: Press briefing Q3 2020 results
Press briefing Q3 2020 results Bernd Spalt, CEO | Stefan Dörfler, CFO 2 November 2020
Slide 2: Net interest income rises, costs decline
Net interest income rises, costs decline Operating income (EUR mn) Operating expenses (EUR mn) -2.0 % 5,394 5,286 163 158 -1.2 % 230 90 1,484 1,448 3,161 3,123 394 402 879 819 3,517 3,589 1,887 1,902 1-9 19 1-9 20 1-9 19 1-9 20 Net interest income Net fee and commission income Personnel expenses Oth
Slide 3: Risk costs reflect the scale of the economic crisis
Risk costs reflect the scale of the economic crisis Risikokosten (EUR Mio) NPL coverage (in %) NPL ratio (in %) 614 91.1 95.5 77.1 2.5 2.4 2.4 62 195 Q1 20 Q2 20 Q3 20 Dec 19 Jun 19 Sep 19 Dec 19 Jun 19 Sep 19 3
Slide 4: Increased risk costs weigh on net profit
Increased risk costs weigh on net profit YoY net profit reconciliation (EUR mn) -47.9 % 1,223 108 38 913 146 637 87 165 1–9 19 Operating Operating Risk costs Other result Taxes Minorities 1–9 20 income expenses 4
Slide 5: Strong capital position to face the crisis
Strong capital position to face the crisis Common equity tier one (CET1) capital ratio (CRR, final) 12.9 % 13.5 % 13.7 % 14.1 % 12.0 % 12.8 % 11.2 % 11.4 % 10.6 % 8.3 % 9.2 % 9.4 % DEC 2009 DEC 2010 DEC 2011 DEC 2012 DEC 2013 DEC 2014 DEC 2015 DEC 2016 DEC 2017 DEC 2018 DEC 2019 SEPT 2020 5
Slide 6: Supporting our customers when they need us most
Supporting our customers when they need us most 2.6 % 6.3 % Over 1 million customers EUR 18.4 bn higher loans volume rise in deposits helped since lockdowns in Covid-19 measures (YTD) (YTD)
Slide 7: We're well-positioned for the rebound in CEE
We‘re well-positioned for the rebound in CEE Customer loans (change YTD) GDP 2020e 2021e (volume, net - per 09/2020) - 7.9 % + 4.0 % -1.7 % (EUR 28.2 Mrd) - 6.3 % + 6.0 % + 4.6 % (EUR 14.7 Mrd) - 6.2 % + 4.3 % +1.9 % +3.7 % (EUR 35.0 Mrd) (EUR 48.7 Mrd) - 5.8 % + 4.7 % EBOe SB - 1.3 % (EUR 4.7 Mrd)
Slide 8: Companies will need more equity capital to power rebound
Companies will need more equity capital to power rebound Debt-to-equity ratio for non-financial corporations (2018) 1.0 0.8 0.6 0.4 0.2 0.0 CHE SWE USA FRA ESP DNK NLD FIN NOR BEL OECD GBR CAN DEU ITA AUT SOURCE: OECD 8
Slide 9: Outlook for 2020/21
Outlook for 2020/21 Operating environment Credit risk Profitability Real GDP decline of between 4-9% 2020e risk costs confirmed at approx. 2020e net result to be meaningfully expected in 2020, Q4 restrictions not 65-80bps (of average customer loans) lower than in 2019 yet incorporated 2021e risk cha