Erste Group Bank Ag · VIE:EBS
Erste Group Bank — H1 2010 Earnings Presentation
83 slides from Erste Group Bank's earnings presentation, Jul 30, 2010
Slide 1: Erste Group – H1 2010 results presentation
Erste Group – H1 2010 results presentation 30 July 2010, Vienna Strong operating performance across the region Andreas Treichl, Chief Executive Officer Manfred Wimmer, Chief Financial Officer Bernhard Spalt, Chief Risk Officer
Slide 2: Disclaimer – Cautionary note regarding forward-looking statements
Disclaimer – Cautionary note regarding forward-looking statements THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTN
Slide 3: H1 2010 executive summary
H1 2010 executive summary – Continued strong operating performance in Q2 2010 Continued revenue growth and cost management pushed cost/income ratio to new low Operating income rose by 4.1% to EUR 3,889.8 million despite a 30% yoy decline in the net trading result Operating result improved by 12.1% t
Slide 4: Presentation topics
Presentation topics * Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix *) The following tables and texts may contain rounding differences. 30 July 2010 Teleconference Vienna 4 H1 2010 Results
Slide 5: Erste Group business snapshot
Erste Group business snapshot – Retail market leadership in the eastern part of the EU Czech Republic Slovakia Ukraine Clients: 5.3m Retail loans: 26.6% Clients: 2.5m Clients: 0.1m Retail dep.: 29.4% Retail loans: 26.5% Retail loans: 1.7% Retail dep.: 27.5% Retail dep.: 0.3% Branches: 660 Branches:
Slide 6: Macroeconomic trends – What has changed in CEE in Q2 2010?
Macroeconomic trends – What has changed in CEE in Q2 2010? Economic growth continued to be driven by exports in Q2 2010 Industrial output increased significantly across the region No improvement of household consumption to date More balanced growth forecast for next year with domestic demand expecte
Slide 7: Macroeconomic trends – GDP growth and export shares in CEE
Macroeconomic trends – Focus: GDP growth and export shares in CEE Growth is set to return to most CEE countries GDP growth in CEE in 2010 4.3 Growth is mainly driven by exports while domestic 5.0 1.2 1.8 3.1 1.3 0.9 demand remains weak 0.0 Romania: VAT increase expected to have negative -1.5 impact
Slide 8: Macroeconomic trends – CEE public finance update
Macroeconomic trends – Focus: CEE public finance update CEE governments have introduced measures Agreed 2010 fiscal deficit targets in % of GDP 0 2 4 6 8 10 12 14 to meet agreed fiscal deficit targets In agreement with international organisations such as Ireland 11.5 the IMF and EBRD Spain 9.3 Roman
Slide 9: Presentation topics
Presentation topics Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix 30 July 2010 Teleconference Vienna 9 H1 2010 Results
Slide 10: H1 2010 financial highlights – Solid margins and strong operating profitability
H1 2010 financial highlights – Solid margins and continued strong operating profitability Net profit declined by 4.1% to EUR 471.9 million Cash earnings per share * Lower Cash-EPS and Cash-ROE due to substantially enlarged capital base 2.5 Issuance of participation capital in H1 09 (EUR 1.76bn) 2.10
Slide 11: H1 2010 financial highlights – Improving operating result across key segments
H1 2010 financial highlights – Improving operating result across all key segments in EUR million 1-6 10 1-6 09 Change Q2 10 Q1 10 Q2 09 Retail & SME 1,569.5 1,346.8 16.5% 831.0 738.5 708.2 Austria 419.8 376.4 11.5% 219.7 200.0 177.3 EB Oesterreich 193.8 153.2 26.5% 98.7 95.0 79.3 Savings Banks 226.0
Slide 12: Q2 2010 financial highlights
Q2 2010 financial highlights – Higher revenues and lower costs drive operating result Operating income per quarter Operating expenses per quarter 2,500 1,200 1,954 984 953 945 1,922 1,921 1,922 1,936 1,000 920 927 2,000 82 99 91 94 97 in EUR million 160 141 105 in EUR million 199 93 460 472 494 800
Slide 13: Presentation topics
Presentation topics Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix 30 July 2010 Teleconference Vienna 13 H1 2010 Results
Slide 14: Erste Group's customer deposits
Erste Group’s customer deposits – Deposit growth continues to outpace loan growth Customer deposits grew by 4.0% ytd (up 2.7% yoy) Customer deposit trends by main segments Mainly based on solid growth in Austria and strong inflows in the Czech Republic 125 113.5 113.3 112.0 115.6 116.6 Retail & SME
Slide 15: Erste Group's loan book
Erste Group’s loan book – Loan demand across the segments remained subdued Customer loans increased by 1.4% ytd; up 2.2% yoy Growth in Retail & SME loans in Austria and CEE ytd and yoy Customer loans by main segments * was driven mainly by appreciation of CHF and CEE currencies 150 vs euro 128.1 130
Slide 16: Erste Group's asset quality – Group trends
Erste Group’s asset quality – Group trends: stable new NPL formation, coverage up NPL coverage ratio continued to improve Erste Group: NPL ratio vs NPL coverage compared to both H1 2009 as well as Q1 2010 30% 65% Continued consolidation in new NPL formation 25% Excellent performance in Austria both
Slide 17: Erste Group's asset quality – Segment round-up
Erste Group’s asset quality – Segment round-up: Austria and GCIB perform well Retail & SME/Austria: stable asset quality NPL ratios in key segments accompanied by stable risk costs Portfolio composition improved with increase in share 18% of lower risk class; NPL coverage ratio up 16% 15.4% P&L risk
Slide 18: Erste Group's asset quality – Segment round-up cont'd
Erste Group’s asset quality – Segment round-up cont'd: consolidation of risk costs Slovakia benefits from continued excellent Risk costs in key segments portfolio performance Supported by high quality retail business and 700 607 continued retail loan growth; stabilisation in corporate 600 557 553 52
Slide 19: Erste Group's funding profile
Erste Group’s funding profile – Retail deposits remain a key pillar in the funding mix Customer deposits remain the main source of funding Providing a solid funding base in all local currencies Evolution of Erste Group's funding mix Reflected in loan/deposit ratio improvement to 112.4% Short-term fu
Slide 20: Erste Group's capital position
Erste Group’s capital position – Further strengthening of the capital base Total equity (IFRS) increased by EUR 0.4 Total capital reconciliation billion (+2.5%) year-to-date based on: 18 Retained earnings and … 16.1 0.2 -0.1 -0.5 16.5 0.6 … improved AfS reserve … 16 in EUR billion … offsetting weake
Slide 21: Erste Group's capital position – European stress test
Erste Group’s capital position – European stress test confirms solid capitalisation levels Tier 1 ratio Tier 1 ratio Core tier 1 ratio (credit risk)1 (total risk)2 (total risk)3 11.2% 10.8% 9.6% 9.2% 8.6% 8.3% 7.2% 6.2% 5.2% 2008 2009 H1 10 2008 2009 H1 10 2008 2009 H1 10 1) Tier 1 ratio (credit ris
Slide 22: Outlook – Slow economic recovery, better regulatory visibility
Outlook – Slow economic recovery, better regulatory visibility Most CEE markets have emerged from recession … Austria, Czech Republic, Slovakia set to grow faster than EU average in 2010 Outlook for Hungary remains uncertain but low single-digit GDP growth in 2010 is likely In Romania the recovery w
Slide 23: Presentation topics
Presentation topics Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix 30 July 2010 Teleconference Vienna 23 H1 2010 Results
Slide 24: Group income statement (IFRS)
Group income statement (IFRS) – Continued strong operating performance in Q2 2010 in EUR million 1-6 10 1-6 09 Change Q2 10 Q1 10 Q2 09 Net interest income 2,684.8 2,505.3 7.2% 1,361.2 1,323.6 1,279.3 Risk provisions for loans and advances (1,084.2) (892.1) 21.5% (553.0) (531.2) (521.9) Net fee and
Slide 25: Group balance sheet (IFRS) – Loan-to-deposit ratio
Group balance sheet (IFRS) – Loan-to-deposit ratio nearly stable at 112.4% in EUR million Jun 10 Dec 09 Change Cash and balances with central banks 6,540 5,996 9.1% Loans and advances to credit institutions 16,408 13,140 24.9% Loans and advances to customers 130,960 129,134 1.4% Risk provisions for
Slide 26: Group balance sheet (IFRS) – Stronger balance sheet
Group balance sheet (IFRS) – Stronger balance sheet driven by deposit growth in EUR million Jun 10 Dec 09 Change Deposits by banks 26,730 26,295 1.7% Customer deposits 116,558 112,042 4.0% Debt securities in issue 29,841 29,612 0.8% Trading liabilities 3,392 3,157 7.4% Provisions 1,613 1,670 (3.4%)
Slide 27: Core segments – Retail & SME
Core segments – Retail & SME segment continued to improve in Q2 2010 Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 1-6 10 1-6 09 1-6 10 1-6 09 1-6 10 1-6 09 1-6 10 1-6 09 1-6 10 1-6 09 Net interest income 2,290.5 2,198.2 293.0 272.8 56.8 123.1 44.5 (88.9) 2,684.8 2,505.
Slide 28: Core segment – Austria
Core segment – Austria Erste Bank Oesterreich drives improvement in Austria Savings Banks EB Oesterreich Austria in EUR million 1-6 10 1-6 09 1-6 10 1-6 09 1-6 10 1-6 09 Net interest income 477.3 471.1 319.4 325.0 796.6 796.1 Risk provisions (135.9) (178.1) (87.7) (74.3) (223.6) (252.4) Net fee and
Slide 29: Core segment Central and Eastern Europe (1)
Core segment Central and Eastern Europe (1) – Sustained strong operating performance … Czech Republic Romania Slovakia Hungary in EUR million 1-6 10 1-6 09 1-6 10 1-6 09 1-6 10 1-6 09 1-6 10 1-6 09 Net interest income 536.1 529.9 415.2 390.8 209.5 178.4 185.9 164.9 Risk provisions (188.1) (120.8) (2
Slide 30: Core segment Central and Eastern Europe (2)
Core segment Central and Eastern Europe (2) – … while risk cost levels vary across the region Croatia Serbia Ukraine CEE in EUR million 1-6 10 1-6 09 1-6 10 1-6 09 1-6 10 1-6 09 1-6 10 1-6 09 Net interest income 117.6 107.9 12.4 15.8 17.0 14.3 1,493.8 1,402.1 Risk provisions (48.5) (25.8) (4.6) (4.0
Slide 31: Segment Retail & SME
Segment Retail & SME – Operating performance improved quarter-on-quarter Retail & SME segment is the key profit contributor at Segment operating performance Erste Group 2,000 1,622 1,637 1,640 1,551 1,558 Net profit increased by 5.1% yoy, rising 19.6% qoq 1,500 808 853 738 831 Driven mainly by stron
Slide 32: Segment Retail & SME – Loan book analysis
Segment Retail & SME – Loan book analysis Segment Retail & SME - Segment Retail & SME - Customer loans by Basel II customer segment Customer loans by currency 120 106.8 108.9 108.6 110.0 111.5 100% 2.2% 2.2% 2.2% 2.3% 2.3% 5.6 5.6 5.7 5.9 14.7% 14.3% 14.2% 14.4% 15.0% 5.0 80% 90 in EUR billion 42.5
Slide 33: Segment GCIB
Segment GCIB – Improved operating result offset by higher risk costs Operating result up 6.7% yoy (-3.8% qoq) to EUR Segment operating performance 285.3m Revenues improved by 6.4% yoy supported by NII growth 250 (+7.4% yoy), driven by re-pricing of loans in 2009 and selective 202 189 177 175 187 loa
Slide 34: Segment GCIB – Loan book analysis
Segment GCIB – Loan book analysis Segment GCIB - Segment GCIB - Customer loans by currency Customer loans by Basel II customer segment 30 100% 3.4% 1.2% 3.2% 1.3% 3.6% 1.3% 4.6% 1.3% 4.1% 1.2% 7.0% 6.4% 5.5% 5.7% 5.3% 14.0% 12.5% 12.5% 13.4% 14.1% 20.5 20.3 80% 19.5 19.6 19.0 in EUR billion 20 1.1 1
Slide 35: Segment Group Markets
Segment Group Markets – Very strong Q1 2010 performance was not repeated Operating result declined by 47.9% yoy and 45.0% qoq Segment operating performance Revenues declined sharply by 35.1% yoy based on a much weaker Q2 2010 operating income of EUR 116.1m, down 32.3% 250 229 on very strong Q1 2010
Slide 36: Segment Corporate Center
Segment Corporate Center – Performance continues to improve What is in the Corporate Center? Segment operating performance Business areas which cannot be allocated to relevant business lines, one-offs and Group ALM 40 18 20 11 Line-item analysis 0 in EUR million NII substantially improved by EUR 133
Slide 37: Retail & SME: Austria/EB Oesterreich
Retail & SME: Austria/EB Oesterreich – Improvements in all operating lines Operating result improved by 26.5% yoy (+3.9% qoq) Segment operating performance NII declined by 1.7% yoy to EUR 319.4m (+1% qoq). Customer deposits increased by 5.2% yoy but margin pressure continued, 300 248 251 this was pa
Slide 38: Retail & SME: Austria/EB Oesterreich – Loan book analysis
Retail & SME: Austria/EB Oesterreich – Loan book analysis Segment EB Oesterreich - Segment EB Oesterreich - Customer loans by Basel II customer segment Customer loans by currency 30 26.0 26.1 26.4 26.8 100% 1.8% 1.7% 1.9% 1.9% 2.1% 25.7 15.5% 15.2% 15.1% 15.3% 15.8% 1.4 1.4 1.4 1.4 1.3 80% in EUR bi
Slide 39: Retail & SME: Austria/Savings banks
Retail & SME: Austria/Savings banks – Positive contribution to net profit on lower risk cost Operating result improved by 1.3% yoy and 15.2% qoq Segment operating performance NII increased by 1.3% yoy (7.1% qoq) despite declining market interest rates 353 356 356 400 335 339 Fee income increased by
Slide 40: Retail & SME: Austria/Savings banks – Loan book analysis
Retail & SME: Austria/Savings banks – Loan book analysis Segment Savings Banks - Segment Savings banks - Customer loans by Basel II customer segment Customer loans by currency 40 35.3 35.9 36.1 36.7 100% 3.0% 3.2% 3.0% 3.3% 3.3% 34.8 1.6 1.6 1.7 19.7% 19.3% 18.9% 19.3% 19.8% 1.5 1.5 80% 30 in EUR bi
Slide 41: Retail & SME: Czech Republic
Retail & SME: Czech Republic – Solid operating performance in low rate environment Operating result improved by 6.1% (+0.7% FX- adjusted)1 yoy to EUR 429.3m Segment operating performance NII improved by 1.2% yoy (-3.9%), up by 2.7% qoq; pressure on 500 liability margins through lower market interest
Slide 42: Retail & SME: Czech Republic – Loan book analysis
Retail & SME: Czech Republic – Segment Czech Republic: loan book analysis Segment Czech Republic - Segment Czech Republic - Customer loans by Basel II customer segment Customer loans by currency 20 17.7 17.3 100% 0.2% 3.8% 0.1% 3.4% 0.1% 3.3% 0.1% 3.4% 0.1% 3.5% 16.9 16.7 17.1 0.6 0.7 0.7 0.6 0.7 16
Slide 43: Retail & SME: Romania
Retail & SME: Romania – Higher risk costs (yoy) continue to impact net profit Operating result strongly improved by 21.7% yoy (up Segment operating performance 19.6% FX-adjusted)1, up 26.6% qoq NII up 6.2% (4.4%) supported by better pricing in the corporate 350 306 and municipality businesses, as we
Slide 44: Retail & SME: Romania – Loan book analysis
Retail & SME: Romania – Segment Romania: loan book analysis Segment Romania - Segment Romania - Customer loans by currency Customer loans by Basel II customer segment 15 100% 2.4% 2.0% 2.1% 2.2% 2.0% 11.0 11.2 11.2 11.4 11.2 12 80% in EUR billion 0.8 1.2 1.2 1.3 1.2 54.3% 55.9% 56.6% 56.4% 59.2% 9 6
Slide 45: Retail & SME: Slovakia
Retail & SME: Slovakia – Sustainable improvement in net profit Operating result increased by 53.1% yoy (+9.0% qoq) NII continued to improve: up 17.4% yoy on the back of strong Segment operating performance growth in retail loans (mainly mortgages) and selective repricing of deposits; NII up 2.4% qoq
Slide 46: Retail & SME: Slovakia – Loan book analysis
Retail & SME: Slovakia – Segment Slovakia: loan book analysis Segment Slovakia - Segment Slovakia - Customer loans by Basel II customer segment Customer loans by currency 8 100% 0.8% 0.8% 0.7% 0.4% 0.4% 5.5 5.7 5.7 5.5 5.6 80% 6 in EUR billion 0.1 0.1 0.1 0.1 0.1 1.9 1.9 1.8 1.5 1.5 60% 4 0.4 0.3 0.
Slide 47: Retail & SME: Hungary
Retail & SME: Hungary – Strong operating result mitigating higher risk costs Operating result advanced by 31.1% (+22.9% FX- Segment operating performance adjusted)1 yoy in H1 2010 Strongly supported by NII, which rose by 12.8% yoy (+5.7%), 150 130 131 122 126 119 due to ability to re-price retail as
Slide 48: Retail & SME: Hungary – Loan book analysis
Retail & SME: Hungary – Segment Hungary: loan book analysis Segment Hungary - Segment Hungary - Customer loans by currency Customer loans by Basel II customer segment 10 100% 0.4% 0.5% 0.6% 0.4% 0.5% 21.1% 22.0% 22.6% 21.7% 23.2% 7.2 7.2 7.3 7.4 7.6 8 80% 0.4 in EUR billion 0.3 0.3 0.3 0.4 6 2.4 2.4
Slide 49: Retail & SME: Croatia
Retail & SME: Croatia – Solid operating performance continues Operating result improved by 12.2% (+10.4% FX- Segment operating performance adjusted)1 to EUR 89.0m yoy, up 18.1% qoq NII continued to improve by 9.0% (+7.3%) due to better margins 100 81 80 83 in both the retail and the corporate busine
Slide 50: Retail & SME: Croatia – Loan book analysis
Retail & SME: Croatia – Segment Croatia: loan book analysis Segment Croatia - Segment Croatia - Customer loans by currency Customer loans by Basel II customer segment 6 5.4 100% 0.1% 0.2% 0.2% 0.2% 0.1% 15.9% 15.3% 15.4% 15.6% 15.6% 4.6 4.8 4.7 4.7 0.4 0.5 0.3 0.3 80% 0.4 in EUR billion 4 2.4 1.7 1.
Slide 51: Retail & SME: Serbia
Retail & SME: Serbia Low interest rates and higher risk costs lead to net loss Operating result decreased by 51.9% yoy (-49.1% FX- Segment operating performance adjusted)1 to EUR 3.1m; up 38.5% qoq NII declined by 21.3% (-16.8%) due to significant drop in local 15 market interest rates, effecting re
Slide 52: Retail & SME: Serbia – Loan book analysis
Retail & SME: Serbia – Segment Serbia: loan book analysis Segment Serbia - Segment Serbia - Customer loans by currency Customer loans by Basel II customer segment 600 100% 1.3% 1.2% 0.9% 3.2% 0.9% 3.3% 1.3% 518.2 517.0 3.6% 3.6% 4.7% 464.6 459.0 9.2 8.9 2.3 2.2 80% 391.5 in EUR million 400 5.7 63.9%
Slide 53: Retail & SME: Ukraine
Retail & SME: Ukraine – Substantially improved operating performance in Q2 10 Operating result turned positive in H1 2010 thanks to Segment operating performance strong second quarter and despite lack of meaningful lending activities since Q4 08 15 14 NII has improved on higher interest income from
Slide 54: Retail & SME: Ukraine – Loan book analysis
Retail & SME: Ukraine – Segment Ukraine: loan book analysis Segment Ukraine - Segment Ukraine - Customer loans by currency Customer loans by Basel II customer segment 800 100% 2.0% 2.0% 1.9% 1.6% 1.4% 556.5 544.8 560.5 80% 600 in EUR million 0.0 504.4 509.0 0.0 0.0 69.4 0.0 0.0 69.1 72.9 63.3 64.5 6
Slide 55: Presentation topics
Presentation topics Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 30 July 2010 Tele
Slide 56: Key topics: ABS/CDO portfolio – Stable exposure, slight deterioration in prices
Key topics: ABS/CDO portfolio Stable exposure, slight deterioration in prices Face value increased by EUR 41 million in Q2 2010 Redemptions and amortisations of EUR 45 million Divestments of EUR 24 million ABS/CDO portfolio by book (June 2010)* No impairments in Q2 2010 Currency effects led to incre
Slide 57: Key topics: ABS/CDO portfolio – Detailed portfolio analysis
Key topics: ABS/CDO portfolio Detailed portfolio analysis ABS/CDO portfolio by ratings June 2010)* ABS/CDO portfolio by region June 2010)* % of total % of total in EUR m Face Value Market Value +/-% in EUR m Face Value Market Value +/-% (market value) (market value) AAA 259 238 (8.2%) 13.0% USA 986
Slide 58: Presentation topics
Presentation topics Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 30 July 2010 Tele
Slide 59: Asset quality analysis – Key definitions
Asset quality analysis – Key definitions Key asset quality indicators are based Risk category Agency ratings on on-balance sheet customer loans Low risk AAA to BB / Aaa to Ba Reported NPL and NPL coverage ratios Management attention B exclude collateral Substandard CCC to C / Broad NPL definition Ca
Slide 60: Erste Group's asset quality – Loan book overview
Erste Group’s asset quality – Loan book overview Customer loans by Basel II customer segments Customer loans by industries 150 128.1 130.0 129.1 130.3 131.0 5.8% 6.7 7.0 7.1 3.3% 3.9% 6.1 6.7 3.2% 120 4.9% 38.7% in EUR billion 61.4 61.6 61.0 60.7 60.3 4.9% 90 60 13.7 13.8 13.4 13.5 13.7 5.4% 30 47.0
Slide 61: Asset quality analysis – Loan book by segments
Asset quality analysis – Loan book by segments Low risk Mgmt attention Substandard Non-performing Total loan book Risk provisions NPL coverage NPL ratio Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Retail & SME 79,138 77,484 18,612 1
Slide 62: Asset quality analysis – Loan book by regions
Asset quality analysis – Loan book by regions (country of origination) Low risk Mgmt attention Substandard Non-performing Total loan book in EUR million Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Share of total Share of total Core market 84,799 85,141 21,163 20,937 6,010 5
Slide 63: Asset quality analysis – Loan book by industry sectors
Asset quality analysis – Loan book by industry sectors Low risk Mgmt attention Substandard Non-performing Total loan book in EUR million Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10 Dec 09 Share of total Share of total Agriculture and forestry 1,015 1,040 590 596 153 142 176 155 1,
Slide 64: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (30 June 2010: EUR 36.3 bn) (30 June 2010: EUR 36.3 bn) 4.1% 4.6% 19.8% 24.6% 5.7% 2.9% 8.8% 4.1% 5.2% 14.1% 15.4% 61.5% 6.0% 6.6% 7.3% 9.2% AT CZ SK US DE HU RO IT GB Other EUR CZK USD
Slide 65: Presentation topics
Presentation topics Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 30 July 2010 Tele
Slide 66: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-6 10 1-6 09 Rate and margin environment Cost/income ratio 42.1% 42.5% Return on equity 18.1% 19.9% 80% 70.9% 72.9% 72.5% 8% 68.1% 65.7% Jun 10 Dec 09 Change Erste Group stake 97.99% Solvency ratio 13.4% 12.3% 60%
Slide 67: Key local entity data – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 1-6 10 1-6 09 Rate and margin environment Cost/income ratio 33.0% 39.5% 145.6% 145.5% 143.1% 143.2% 143.6% Return on equity 14.3% 18.8% 150% 15% Jun 10 Dec 09 Change Erste Group stake 69.17% 10.1% 10.0% 10.6% 12% Solvency ratio
Slide 68: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 1-6 10 1-6 09 Rate and margin environment Cost/income ratio 42.2% 55.8% Return on equity 14.7% 7.6% 100% 8% Jun 10 Dec 09 Change 77.5% 76.5% 76.0% Erste Group stake 100.0% 80% 70.5% 71.2% Solvency ratio 11.4% 10
Slide 69: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-6 10 1-6 09 Rate and margin environment Cost/income ratio 39.4% 47.0% Return on equity 8.1% 20.3% 270% 12% Jun 10 Dec 09 Change 216.2% Erste Group stake 99.94% 194.1% 182.1% 192.3% 10% Solvency ratio 13.5% 13.0%
Slide 70: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 1-6 10 1-6 09 Rate and margin environment Cost/income ratio 39.7% 41.8% Return on equity 9.9% 13.2% 140% 121.6% 12% Jun 10 Dec 09 Change 110.2% 113.4% 111.9% 117.0% Erste Group stake 65.03% 120% 8.5% 8.6% 9% Solve
Slide 71: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 1-6 10 1-6 09 Rate and margin environment Cost/income ratio 78.2% 70.7% Return on equity n.a. 3.3% 103.3% 104% 20% Jun 10 Dec 09 Change Erste Group stake 80.49% 102% 14.7% 12.8% 99.8% 15% Solvency ratio 20.8% 25.1%
Slide 72: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 1-6 10 1-6 09 Rate and margin environment Cost/income ratio 67.3% 74.1% 19.0% Return on equity na na 900% 20% 763.5% Jun 10 Dec 09 Change 800% 15.2% Erste Group stake 100.0% 700% 604.0% 15% Solvency ratio 25.0% 17
Slide 73: Presentation topics
Presentation topics Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 30 July 2010 Tele
Slide 74: Erste Group historic financials – Quarterly income statement
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Net interest income 1,267.3 1,339.8 1,226.0 1,279.3 1,335.6 1,380.0 1,323.6 1,361.2 Net fee and commission income 486.8 482.1 444.6 443.6 425.1 459.5 471.5 493.5 Net tra
Slide 75: Erste Group historic financials – Quarterly balance sheet
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Sep 07 Dez 07 Mär 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Cash and balances with central banks 7,311 7,615 7,783 6,854 7,692 7,556 5,897 6,897 5,458 5,996 5,965 6,540 Loans and advances to credi
Slide 76: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME Group Corporate & Investment Banking Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Net interest income 1,105.8 1,174.0 1,160.2 1,129.1 1,161.3 134.1 141.9 155.8 147.6 145.4 Risk provisions (453.6) (484.
Slide 77: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Net interest income 166.3 159.9 152.5 158.9 160.4 224.4 246.2 239.8 230.5 246.8 Risk provisions (37.9) (39.2) (38.0) (44.8) (42.9) (111.2
Slide 78: Quarterly segment reporting – CEE sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) in EUR million Czech Republic Romania Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Net interest income 261.1 292.0 261.0 264.5 271.6 196.0 199.5 246.5 213.1 202.0 Risk provisions (79.5) (82.3) (84.9) (97.2) (90.
Slide 79: Quarterly segment reporting – CEE sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Net interest income 57.2 57.6 58.0 56.1 61.5 8.1 6.1 6.2 6.1 6.4 Risk provisions (16.8) (19.6) (29.1) (25.3) (23.2) (2.6) (2.1) (0.9) (2
Slide 80: Presentation topics
Presentation topics Business snapshot and macro trends H1 2010 financial highlights H1 2010 key topics H1 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 30 July 2010 Tele
Slide 81: Group statistical data – Tier 1 and solvency ratios
Group statistical data* – Tier 1 and solvency ratios within target ranges in EUR million 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Jun 10 Tier 1 Capital pursuant to Austrian Banking Act 1,611 1,753 2,125 2,337 3,800 3,912 4,377 5,112 6,185 6,674 7,448 11,450 11,724 Total own funds
Slide 82: Shareholder structure
Shareholder structure – Total number of shares: 378,176,721 By investor By region Criteria CaixaCorp Other 10.1% 2.1% Continental Europe Capital Research 26.1% 19.6% 5.1% Austria 49.0% Employees UK & Ireland 3.5% 10.5% Savings banks 5.1% Institutional Retail investors investors 6.3% North America 43
Slide 83: Investor relations contacts
Investor relations contacts Erste Group Bank AG, Graben 21, 1010 Vienna Fax +43 (0)5 0100-13112 E-mail: investor.relations@erstegroup.com Internet: www.erstegroup.com Reuters: ERST.VI Bloomberg: EBS AV Datastream: O:ERS ISIN: AT0000652011 Investor relations Gabriele Werzer Tel: +43 (0)5 0100-11286 e