Erste Group Bank Ag · VIE:EBS
Erste Group Bank — FY2014 Earnings Presentation
18 slides from Erste Group Bank's earnings presentation, Feb 27, 2015
Slide 1: Erste Group closes 2014 with profitable quarter
Erste Group closes 2014 with profitable quarter 27 February 2015 Andreas Treichl, CEO Gernot Mittendorfer, CFO Andreas Gottschling, CRO Peter Bosek, Retail Jozef Síkela, Corporate
Slide 2: Presentation topics
Presentation topics − Erste Group’s development in 2014 − Capital position and Outlook 2015 − Appendix YE Press Conference 27th February 2015 Page 2
Slide 3: Income statement: return to profitability in Q4 14
Income statement: return to profitability in Q4 14 QoQ net profit reconciliation (EUR m) YoY net profit reconciliation (EUR m) 42 60 23 7 117 109 385 223 788 394 65 116 331 -554 10 -1.442 Q3 14 Operating Operating Risk costs Other Taxes on Minorities Q4 14 income expenses result income 2013 Operatin
Slide 4: Income statement: 2014 one-off summary
Income statement: 2014 one-off summary One-offs with effect on regulatory capital One-offs with no effect on regulatory capital • Additional risk provisions of about EUR 400m in • Write-down of intangible assets related to Romania Romania • Write-down of full remaining goodwill of EUR 319.1m • Write
Slide 5: Income statement: Operating result and Cost-Income-Ratio stable yoy
Q4 13 Income statement: Operating result and Cost-Income-Ratio stable yoy Q3 14 Q4 14 Business line view Geographic view 760 56.1% 760 56.1% Group 808 52.3% Group 808 52.3% 757 57.0% 757 57.0% 392 53.2% 84 64.6% Retail 383 54.4% AT/EBOe 102 60.2% 349 57.7% 85 68.4% 166 29.4% 103 69.8% SME 133 35.2%
Slide 6: Balance sheet: net loans grow for the first time since 2011
Balance sheet: net loans grow for the first time since 2011 YTD total asset reconciliation (EUR m) YTD equity & total liability reconciliation (EUR m) 200,118 200,118 1,272 2,497 1,465 167 1,984 1,138 553 1,342 196,287 934 889 1,000 196,287 183 31/12/13 Cash Trading, Loans to Net loans Intangibles O
Slide 7: Customer loans by country of risk: Re-emerging loan growth, double-digit yoy decline in NPLs
Customer loans by country of risk: Re-emerging loan growth, double-digit yoy decline in NPLs Net customer loans (EUR bn) Performing loans (EUR bn) Non-performing loans (EUR bn) +0.7% +1.8% -11.5% 120.0 120.5 120.8 115.4 116.9 117.4 12.3 2.8 3.1 3.2 2.8 3.1 3.2 0.3 11.4 5.8 5.8 5.7 5.4 0.8 5.3 0.8 0.
Slide 8: Risk costs decline qoq and yoy
Q4 13 Risk costs decline qoq and yoy Q3 14 Q4 14 Business line view Geographic view 529 1.65% 32 0.45% Group 879 2.75% AT/EBOe 10 0.14% 484 1.51% 38 0.51% 4.32% 118 1.01% AT/OA 70 137 Retail 398 3.40% 2.23% 78 2.47% 94 0.80% 27 0.58% 121 1.89% CZ 36 0.77% SME 184 3.19% 30 0.64% 66 1.16% 108 4.03% 10
Slide 9: Non-performing loans and NPL ratio: Asset quality improvement accelerates
31/12/13 Non-performing loans and NPL ratio: 30/09/14 Asset quality improvement accelerates, NPL ratio down 110bps yoy 31/12/14 Business line view Geographic view 12,296 9.6% 1,070 3.8% Group 11,422 8.9% AT/EBOe 1,002 3.5% 10,878 8.5% 1,012 3.5% 1,638 13.4% 3,466 7.4% AT/OA 1,431 11.5% Retail 3,291
Slide 10: Allowances for loans and NPL coverage: NPL coverage improves again, reaching 68.9%
31/12/13 Allowances for loans and NPL coverage: 30/09/14 NPL coverage improves again, reaching 68.9% 31/12/14 Business line view Geographic view 7,753 63.1% 682 63.7% Group 7,864 68.8% AT/EBOe 682 68.1% 7,491 68.9% 697 68.9% 868 53.0% 2,361 68.1% AT/OA 829 57.9% Retail 2,578 78.4% 862 58.1% 2,360 80
Slide 11: Overview
Overview Net interest income & margin Operating result & cost/income ratio Cost of risk in EUR m in EUR m +21.7% in EUR m 2.69% 2.65% 4,685 -0.3% 4,495 2.68% 2.66% 57.0% 2,159 2.75% 3,099 3,091 52.3% 1,774 1,126 1,126 808 757 879 1.51% 484 2013 2014 Q3 14 Q4 14 2013 2014 Q3 14 Q4 14 2013 2014 Q3 14
Slide 12: Presentation topics
Presentation topics − Erste Group’s development in 2014 − Capital position and Outlook 2015 − Appendix YE Press Conference 27th February 2015 Page 12
Slide 13: Capital position: Basel 3 fully loaded CET 1-ratio at 10.6%
Capital position: Basel 3 fully loaded CET 1-ratio at 10.6% Basel 2.5/Basel 3 capital ratios Basel 2.5 Basel 3 Phased-in 16.5% 16.3% 15.7% 15.7% 15.5% 11.8% 11.7% 11.7% 11.4% 11.1% 11.1% 10.8% 10.8% 10.6% 10.6% 31/12/13 31/03/14 30/06/14 30/09/14 31/12/14 CET1 Tier 1 Total capital • Basel 3 fully lo
Slide 14: Outlook 2015
Outlook 2015 • Operating environment anticipated to be conducive to credit expansion • Real GDP growth of between 2-3% expected in all major CEE markets, except Austria (below 1%) and Croatia (- 0.5%) • Real GDP growth to be driven by rising domestic demand • Return on tangible equity (ROTE) expecte
Slide 15: Presentation topics
Presentation topics − Erste Group’s development in 2014 − Capital position and Outlook 2015 − Appendix YE Press Conference 27th February 2015 Page 15
Slide 16: CEE macroeconomic indicators: Improved domestic demand expected to drive economic growth in 2015
2013 CEE macroeconomic indicators: 2014 Improved domestic demand expected to drive economic growth in 2015 Real GDP growth (in %) Dom. demand contribution1 (in %) • CEE economies grew faster than the euro zone in Q4 2014 (0.9% yoy in Q4) 3.5 3.5 • Positive outlook for 2015 supported by Q4 GDP 2.9 2.
Slide 17: Erste's market shares across Central and Eastern Europe: Gross retail loans and retail deposits
Erste‘s market shares across Central and Eastern Europe: Gross retail loans and retail deposits Czech Republic Slovakia Market share: Gross retail loans 23.3% Market share: Retail deposits 25.7% Gross retail loans 26.9% Retail deposits 26.4% Austria Romania Market share: Market share: Gross retail l
Slide 18: Erste's market shares across Central and Eastern Europe: Gross corporate loans and corporate deposits
Erste‘s market shares across Central and Eastern Europe: Gross corporate loans and corporate deposits Czech Republic Market share: Slovakia Gross corporate loans 18.6% Corporate deposits 11.2% Market share: Gross corporate loans 10.9% Corporate deposits 10.6% Austria Market share: Romania Gross corp