Erste Group Bank AG · VIE:EBS
Erste Group Bank — Shareholder Meeting (May 2011)
40 slides from Erste Group Bank's shareholder meeting presentation, May 12, 2011
Slide 1: 18th Annual General Meeting of Erste Group Bank AG
ERSTE GROUP 18th Annual General Meeting of Erste Group Bank AG 12 May 2011 Austria Center Vienna
Slide 2: Heinz Kessler, President of the Supervisory Board
ERSTE GROUP Heinz Kessler President of the Supervisory Board
Slide 3: Report on the financial year 2010
Agenda item 1 ERSTE GROUP Report on the financial year 2010 18th Annual General Meeting 12 May 2011 3
Slide 4: Report on the financial year 2010 for Erste Group Bank AG (consolidated)
ERSTE GROUP Report on the financial year 2010 for Erste Group Bank AG (consolidated) Andreas Treichl Chairman of the Management Board
Slide 5: Retail market leadership in the eastern part of the EU
Erste Group – Retail market leadership in the eastern part of the EU ERSTE GROUP Erste Group Slovakia Czech Republic Clients: 2.4m - the leading retail bank with 17.7 m customers Clients: 5.3m Retail loans: 26.1% - one of the leading corporate banks Retail loans: 25.4% Retail dep.: 26.8% Retail dep.
Slide 6: FY 2010 financial highlights
FY 2010 financial highlights – Rising net profitability and resilient margins ERSTE GROUP − Net profit grew by 12.4% to EUR 1,015.4 m Cash earnings per share − Lower EPS and ROE due to enlarged 4.5 capital base 4.0 3.92 − NIM remained stable at 3.06% in 2010 3.5 3.0 3.14 3.76 2.89 2.57 3.10 2.54 (20
Slide 7: Group income statement (IFRS)
Group income statement (IFRS) – Strong operating performance & declining risk costs ERSTE GROUP in EUR million 2010 2009 Change Net interest income 5,412.5 5,220.9 3.7% Risk provisions for loans and advances (2,031.2) (2,056.6) (1.2%) Net fee and commission income 1,936.0 1,772.8 9.2% Net trading re
Slide 8: Group balance sheet (IFRS) – Asset structure
Group balance sheet (IFRS) – Asset structure almost unchanged, technical effects ERSTE GROUP in EUR million Dec 10 Dec 09 Change Cash and balances with central banks 5,839 5,996 (2.6%) Loans and advances to credit institutions 12,496 13,140 (4.9%) Loans and advances to customers 132,729 129,134 2.8%
Slide 9: Group balance sheet – Subdued loan growth in 2010
Group balance sheet (IFRS) – Subdued loan growth in 2010 ERSTE GROUP Customer loans by main segments 150 132.7 129.1 130.3 131.0 131.5 120 19.5 19.6 19.0 18.4 18.7 in EUR billion 90 46.6 47.4 47.9 48.7 48.6 60 30 62.0 62.5 63.6 63.9 64.7 0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Retail & SME - Austria Retail
Slide 10: Improved loan to deposit ratio at 113.4%
Group balance sheet (IFRS) – Improved loan to deposit ratio at 113.4% ERSTE GROUP in EUR million Dec 10 Dec 09 Change Deposits by banks 20,154 26,295 (23.4%) Customer deposits 117,016 112,042 4.4% Debt securities in issue 31,298 29,612 5.7% Derivative financial instruments 7,996 3,749 >100.0% Tradin
Slide 11: Continued retail deposit growth
Group balance sheet (IFRS) – ERSTE GROUP Continued retail deposit growth Customer deposit trends by main segments 125 112.0 115.6 116.6 115.3 117.0 6.1 6.9 5.8 5.7 6.1 100 in EUR billion 45.3 47.8 47.4 47.7 48.1 75 50 59.3 59.2 60.4 60.0 60.9 25 0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Retail & SME - Austria
Slide 12: Key topics 2010/Q1 2011
Key topics 2010/Q1 2011 ERSTE GROUP 1 Public focus on banks Q1 2011 overview – good start to the new financial year 2 Asset quality and risk costs 3 Funding 4 Solid capital position – Increased net profit strengthened capital base Current business environment – 5 Macroeconomic developments 6 Develop
Slide 13: Banks in the public eye
Topic 1: Banks in the public eye ERSTE GROUP debt crisis bank taxes regulator Banken government support banking fees equity bonus Basel III 18th Annual General Meeting 12 May 2011 13
Slide 14: Banks in the public eye – Not all banks are equal
Topic 1: Banks in the public eye – Not all banks are equal ERSTE GROUP Detached from real economy Banks supporting the real economy (proprietary trading) Banks paying interest to Nationalisation of banks without governments for borrowed funds a sustainable business model Performance-related remunera
Slide 15: Q1 2011 review – Good start to the new financial year
Topic 2: Q1 2011 review – Good start to the new financial year ERSTE GROUP −Net profit rises to EUR 260.6 million despite negative impact from banking taxes in Austria and Hungary −Continuing improvements in asset quality, risk costs decline quarter-on-quarter −Solid cost/income ratio of 50.2% on th
Slide 16: Operating expenses increased below inflation rate
Topic 2: Q1 2011 review – Operating expenses increased below inflation rate ERSTE GROUP Operating income per quarter Operating expenses per quarter 2,500 1,200 1,936 1,954 2,010 1,917 953 945 973 945 963 1,905 1,000 2,000 99 144 95 95 in EUR million 141 72 94 97 in EUR million 140 102 472 494 476 49
Slide 17: Operating result continued to perform well
Topic 2: Q1 2011 review – Operating result continued to perform well ERSTE GROUP in EUR million 1-3 11 1-3 10 Change Retail & SME 763.4 738.5 3.4% Austria 199.6 200.0 (0.2%) EB Oesterreich 88.3 95.0 (7.0%) Savings banks 111.3 105.0 5.9% CEE 563.7 538.4 4.7% Czech Republic 239.6 211.0 13.6% Romania 1
Slide 18: Asset quality and risk costs – Positive group trends
Topic 2: Asset quality and risk costs – Positive group trends ERSTE GROUP Erste Group: NPL ratio vs NPL coverage Quarterly NPL growth (absolute/relative) 30% 65% 1,600 8% 5.5% 5.9% 61.4% 5.3% 25% 60.9% 59.7% 60.0% 1,200 2.4% in EUR million 59.0% 20% 60% 4% 15% 800 531 0.0% 471 505 10% 6.9% 7.3% 7.6%
Slide 19: Risk costs continue to decline
Topic 2: Asset quality and risk costs – Risk costs continue to decline ERSTE GROUP Risk costs in key segments (in % of average customer loans) 8% 6% 3.81% 3.96% 4% 1.58% 1.48% 1.38% 2% 1.02% 0.59% 0% -2% AT CZ RO SK HU GCIB Group Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 18th Annual General Meeting 12 May 2011
Slide 20: Excellent funding mix – Retail deposits remain a key pillar
Topic 3: Excellent funding mix – Retail deposits remain a key pillar ERSTE GROUP Evolution of Erste Group's funding mix 100% 18.9% 16.3% 13.1% 12.1% 80% 16.4% 15.7% 16.7% 15.5% 3.2% 2.8% 3.1% 3.2% 6.4% 8.7% 8.8% 60% 6.4% 40% 56.1% 57.7% 59.3% 59.5% 20% 0% Mar 08 Mar 09 Mar 10 Mar 11 Customer deposit
Slide 21: Short-term funding needs well covered
Topic 3: Improved funding mix – Short-term funding needs well covered ERSTE GROUP Short-term funding vs collateral coverage 60 140% 107.4% 116.3% 111.6% 50 120% in EUR billion 72.9% 100% 40 32.1 31.9 27.9 28.6 80% 30 25.7 27.6 24.0 23.4 60% 20 40% 10 20% 0 0% Mar 08 Mar 09 Mar 10 Mar 11 Short-term f
Slide 22: Refinancing – Successful new issues in 2010 and 2011
Topic 3: Refinancing – Successful new issues in 2010 and 2011 ERSTE GROUP Redemption profile of Erste Group (Q1 2011) 6.0 5.1 5.0 5.0 4.6 in EUR billion 3.7 4.0 2.9 3.0 2.5 2.1 1.9 1.8 2.0 0.8 0.9 0.9 1.0 0.4 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022+ Senior unsecured Cove
Slide 23: Further strengthening of capital ratios
Topic 4: Erste Group’s capital position – Further strengthening of capital ratios ERSTE GROUP Tier 1 ratio Core tier 1 ratio Core tier 1 ratio excl. (total risk) (total risk) participation capital (total risk) 10.2% 10.4% 9.2% 9.2% 9.4% 8.3% 8.0% 7.7% 6.9% 2009 2010 Q1 011 2009 2010 Q1 11 2009 2010
Slide 24: Business environment – Macroeconomic trends
Topic 5: Business environment – Macroeconomic trends ERSTE GROUP Real GDP growth in CEE 8 6 4.0 4.0 2.7 2.5 4 2.2 2.0 2.0 1.8 1.2 2 0 in % -2 -1.3 -4 -3.9 -4.0 -4.8 -6 -6.7 -8 -7.1 -10 AT CZ RO SK HU 2009 2010 2011e − All CEE countries expected to grow in 2011: CZ, SK and AT lead the way − Industria
Slide 25: Business environment – Macroeconomic trends
Topic 5: Business environment – Macroeconomic trends ERSTE GROUP − Perception of the region has improved supported by prudent fiscal policies − Substantial reduction in CDS spreads − CEE currencies appreciated versus the EUR − Successfully placed CEE Eurobonds (PL, RO, SK, CZ) − Unemployment rates a
Slide 26: Share development – Erste Group exceeds peers and ATX
Topic 6: Share development – ERSTE GROUP Erste Group exceeds Peers and ATX 160 Erste Group 140 ATX 120 100 DJ Euro Stoxx Bank 80 60 Feb-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Jan-10 Apr-10 Sep-10 Jan-11 Apr-11 Mar-10 Jul-10 Nov-10 Mar-11 May-10 May-11 18th Annual General Meeting 12 May 2011 26
Slide 27: Share development – Sustainable creation of value
Topic 5: Share development – ERSTE GROUP Sustainable creation of value Development of market capitalisation (Dec 2000 - May 2011) 500% 400% 300% 436% 319% 200% 147% 15% 15% 34% 68% 73% 100% 0% -65% -28% -26% -8% -100% -200% Erste KBC HSBC OTP Unicredit Deutsche Standard & Commerzbank SEB Swedbank Sa
Slide 28: Proposed resolutions
ERSTE GROUP Heinz Kessler 2 President of the Supervisory Board Proposed resolutions
Slide 29: Appropriation of the profit
Agenda item 2 ERSTE GROUP Appropriation of the profit 18th Annual General Meeting 12 May 2011 29
Slide 30: Grant of discharge to the Management Board and Supervisory Board
Agenda item 3 ERSTE GROUP Grant of discharge to the members of the Management Board and the Supervisory Board 18th Annual General Meeting 12 May 2011 30
Slide 31: Request to speak
Request to speak On agenda items 1, 2 and 3 ERSTE GROUP − Report on the financial year 2010 − Appropriation of the profit − Grant of discharge to the members of the Management Board and the Supervisory Board 18th Annual General Meeting 12 May 2011 31
Slide 32: Remuneration of the members of the Supervisory Board
Agenda item 4 ERSTE GROUP Remuneration of the members of the Supervisory Board 18th Annual General Meeting 12 May 2011 32
Slide 33: Appointment of an additional auditor and group auditor for 2012
Agenda item 5 ERSTE GROUP Appointment of an additional auditor and group auditor for 2012 18th Annual General Meeting 12 May 2011 33
Slide 34: Acquisition of own shares for the purpose of securities trading
Agenda item 6 ERSTE GROUP Acquisition of own shares for the purpose of securities trading 18th Annual General Meeting 12 May 2011 34
Slide 35: Acquisition of own shares for no designated purpose
Agenda item 7 ERSTE GROUP Acquisition of own shares for no designated purpose 18th Annual General Meeting 12 May 2011 35
Slide 36: Acquisition of own participation certificates for securities trading
Agenda item 8 ERSTE GROUP Acquisition of own participation certificates for the purpose of securities trading 18th Annual General Meeting 12 May 2011 36
Slide 37: Acquisition of own participation certificates for no designated purpose
Agenda item 9 ERSTE GROUP Acquisition of own participation certificates for no designated purpose 18th Annual General Meeting 12 May 2011 37
Slide 38: Request to speak
Request to speak On agenda items 6, 7, 8 and 9 ERSTE GROUP −Acquisition of own shares for the purpose of securities trading −Acquisition of own shares for no designated purpose −Acquisition of own participation certificates for the purpose of securities trading −Acquisition of own participation cert
Slide 39: Amendments of the Articles of Association
Agenda item 10 ERSTE GROUP Amendments of the Articles of Association 18th Annual General Meeting 12 May 2011 39
Slide 40: Thank you for your attention!
ERSTE GROUP 18th Annual General Meeting Erste Group Bank AG Thank you for your attention!