Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q3 2008 Earnings Presentation
19 slides from Erste Group Bank's earnings presentation, Oct 30, 2008
Slide 1: Erste Group – 1-9 08 results presentation
ERSTE GROUP Erste Group – 1-9 08 results presentation 30 October 2008
Slide 2: 1-9 08 financial highlights
1-9 08 financial highlights ERSTE GROUP Operating profit continued to show healthy growth - up 23.2% in 1-9 08 1 Based on a solid performance of the regional Retail & SME business in Austria and CEE (+34.0%) mainly supported by strong CEE contribution (+52.2%) Asset portfolio sees limited impacts fr
Slide 3: 1-9 08 financial highlights – Improved capital ratios after insurance sale
1-9 08 financial highlights – Improved capital ratios after insurance sale ERSTE GROUP Net profit up 74.6% yoy (EUR 1,463m) including sale Cash earnings per share * of insurance business in Q3 08 Cash EPS excl insurance Adjusted for the insurance sale net profit rose 2.8% 6.0 EUR 2.86 to EUR 861.7m
Slide 4: 1-9 08 divisional highlights – New segment reporting improves transparency
1-9 08 divisional highlights – New segment reporting improves transparency1 ERSTE GROUP Short description of new segments: Operating result per segment * in EUR million 1-9 08 1-9 07 Change Retail & SME: Focus on core customers in the Retail & SME 1,861.0 1,389.1 34.0% region Austria 500.3 494.9 1.1
Slide 5: 1-9 P&L highlights – Revenues remain stable quarter on quarter
1-9 08 P&L highlights – Revenues remain stable quarter on quarter ERSTE GROUP Stable operating income - EUR 1.76bn vs EUR 1.77bn Net profit per quarter in Q2 08 NII improved strongly by 9.7% qoq mainly on resilient growth of 900 loans and deposits in CEE and Austria at stable margins; 800 Excluding
Slide 6: 1-9 – Balance sheet highlights: Stable loan to deposit ratio
1-9 08 – Balance sheet highlights Stable loan to deposit ratio – not to exceed 115% ERSTE GROUP Loan vs deposit development 110% 114% 113% 140 107% 107% 126 120% 114 111 120 100 100% 97 91 100 in EUR billion 73 68 80 80% 80 71 60% 60 40 40% 20 20% 0 0% 2004 2005 2006 2007 Sep 08 Loans and advances t
Slide 7: Key topics: Macro outlook for CEE
Key topics: Macro outlook for CEE Cautiously optimistic scenario in a challenging environment ERSTE GROUP Real GDP growth outlook for CEE Inflation outlook for CEE 10% 25% 8% 20% 6% 15% 4% 10% 2% 5% 0% 0% Czech Romania Slovakia Hungary Croatia Serbia Ukraine Czech Romania Slovakia Hungary Croatia Se
Slide 8: Key topics: Hungary – Addressing the impacts of the financial crisis
Key topics: Hungary – Addressing the impacts of the financial crisis ERSTE GROUP Small and open economy which was already weak before the crisis Low or even flat GDP growth Shrinking but still considerable budget deficit High inflation and interest rate environment 60% of loans denominated in FX Int
Slide 9: Key topics: Romania – Economy continuous to outperform expectations
Key topics: Romania – Economy continuous to outperform expectations ERSTE GROUP The politicians focus has shifted to upcoming general elections Standard & Poor’s has recently lowered Romania’s long- and short-term foreign currency sovereign credit ratings citing inconsistent fiscal policy National B
Slide 10: Key topics: Outlook – Guidance for 2008 - Focus on operating result
Key topics: Outlook – Guidance for 2008 - Focus on operating result ERSTE GROUP Operating result1 expected to increase by 15% in 2008 New guidance for 2008 reflects impacts of current financial market environment Weaker contributions from trading and securities commissions Continued and balanced gro
Slide 11: Group income statement (IFRS) – Net profit increases supported by insurance deal
Group income statement (IFRS) – Net profit increases supported by insurance deal ERSTE GROUP in EUR million 1-9 08 1-9 07 Change Net interest income 3,573.3 2,844.1 25.6% Risk provisions for loans and advances (602.3) (335.9) 79.3% Net fee and commission income 1,489.0 1,354.2 10.0% Net trading resu
Slide 12: Group balance sheet (IFRS) – Loan growth in line with expectations
Group balance sheet (IFRS)* – Loan growth in line with expectations ERSTE GROUP in EUR million Sep 08 Dec 07 Change Cash and balances with central banks 7,692 7,615 1.0% Loans and advances to credit institutions 19,088 14,937 27.8% Loans and advances to customers 125,673 113,956 10.3% Risk provision
Slide 13: Group balance sheet (IFRS) – Solid deposit growth despite seasonal slow-down
Group balance sheet (IFRS)* – Solid deposit growth despite seasonal slow-down ERSTE GROUP in EUR million Sep 08 Dec 07 Change Deposits by banks 37,420 35,165 6.4% Customer deposits 110,964 100,116 10.8% Debt securities in issue 29,802 31,078 (4.1%) Trading liabilities 2,726 1,756 55.2% Underwriting
Slide 14: Core segments – New segment report in line with Group structure
Core segments* – New segment report in line with Group structure ERSTE GROUP Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 1-9 08 1-9 07 1-9 08 1-9 07 1-9 08 1-9 07 1-9 08 1-9 07 1-9 08 1-9 07 Net interest income 3,143.2 2,557.1 329.8 272.5 163.3 58.0 (62.9) (43.5) 3,57
Slide 15: Core segment – Austria: Strong NII partly offsetting weaker fee income
Core segment – Austria Strong NII partly offsetting weaker fee income ERSTE GROUP Savings Banks EB Oesterreich Austria in EUR million 1-9 08 1-9 07 1-9 08 1-9 07 1-9 08 1-9 07 Net interest income 702.7 641.5 445.5 432.0 1,148.3 1,073.5 Risk provisions (158.3) (125.5) (73.7) (74.7) (232.0) (200.2) Ne
Slide 16: Core segment Central and Eastern Europe (1) – Resilient customer business
Core segment Central and Eastern Europe (1) – Resilient customer business … ERSTE GROUP Czech Republic Romania Slovakia Hungary in EUR million 1-9 08 1-9 07 1-9 08 1-9 07 1-9 08 1-9 07 1-9 08 1-9 07 Net interest income 794.2 590.0 542.5 369.6 256.2 213.6 211.4 178.2 Risk provisions (78.3) (49.0) (69
Slide 17: Core segment Central and Eastern Europe (2)
Core segment Central and Eastern Europe (2) – … supported by strong NII and fee income ERSTE GROUP Croatia Serbia Ukraine CEE in EUR million 1-9 08 1-9 07 1-9 08 1-9 07 1-9 08 1-9 07 1-9 08 1-9 07 Net interest income 144.3 114.1 24.1 11.5 22.2 6.5 1,994.9 1,483.6 Risk provisions (15.9) (12.0) (4.3)
Slide 18: Summary financials of CEE subsidiaries
Summary financials of CEE subsidiaries Results (IFRS) as reported by local entities* ERSTE GROUP 97.99% 69.17% 100.00% 99.94% in EUR million 1-9 08 1-9 07 Change 1-9 08 1-9 07 Change 1-9 08 1-9 07 Change 1-9 08 1-9 07 Change Net profit after minorities 561.4 323.8 73.4% 341.5 198.8 71.8% 132.3 101.8
Slide 19: Shareholder structure – Total number of shares: 317,012,763
Shareholder structure – Total number of shares: 317,012,763 ERSTE GROUP By investor By region Austria Verein 5.0% Others Continental Europe 2.4% DIE ERSTE 13.7% österreichische Spar-Casse Privatstiftung 31.1% UK & Ireland 12.7% Institutional Austria investors 54.9% 46.1% Employees 3.5% Savings banks