Slide 1: FY 2009 preliminary results presentation
Erste Group – FY 2009 preliminary results presentation 26 February 2010, Vienna Strong operating performance sustained 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 CORREC
Slide 3: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary* financials and segment reporting − Appendix * Preliminary, unaudited, consolidated IFRS results for 2009 26 February 2010 Teleconference Vienna 3 Preliminary Res
Slide 4: Erste Group in the region – Overview of key facts
Erste Group in the region – Overview of key facts Czech Republic Slovakia Ukraine Clients: 5.3m Retail loans: 27.7% Clients: 2.5m Clients: 0.1m Retail dep.: 29.5% Retail loans: 25.9% Retail loans: 1.7% Retail dep.: 28.1% Retail dep.: 0.3% Branches: 660 Branches: 279 Branches: 134 Austria Hungary Cli
Slide 5: CEE economies expected to recover in 2010
Erste Group in the region – CEE economies expected to recover in 2010 − As CEE economies emerge from GDP growth in CEE recession, growth is set to return in 2010 5.0 1.5 1.8 1.9 2.6 2.8 0.0 0.3 0.7 − Slower recovery expected in Croatia, 0.0 Hungary and Serbia in % -5.0 -2.9 − Growth rates in other c
Slide 6: Attractive fiscal environment in CEE
Erste Group in the region – Attractive fiscal environment in CEE − Erste Group’s markets characterised by lower Public debt/fiscal deficit in % of GDP levels of public debt 0 20 40 60 80 100 120 140 − Of these Hungary has the highest public debt to GDP Greece 8.7 122 ratio (80%), yet is still below
Slide 7: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary financials and segment reporting − Appendix 26 February 2010 Teleconference Vienna 7 Preliminary Results FY 09
Slide 8: FY 2009 financial highlights – Executive summary
FY 2009 financial highlights – Executive summary − Erste Group’s operating result was up by 25.8% to EUR 3,771.4m in 2009 − Supported by a strong Q4 09 performance sustaining that of the first nine month − Net profit improved by 5.1% to EUR 903.4m for the full year − Q4 09 net profit (EUR 183.3m) pa
Slide 9: Strong operating performance in all segments
FY 2009 financial highlights – Strong operating performance in all segments in EUR million 2009 2008 Change Q4 09 Q3 09 Q4 08 Retail & SME 3,008.1 2,707.0 11.1% 853.2 808.1 796.5 Austria 816.2 764.6 6.8% 231.2 208.6 239.3 EB Oesterreich 328.3 281.0 16.8% 84.7 90.4 79.1 Savings Banks 488.0 483.6 0.9%
Slide 10: Revenues stable at high levels while costs declined
FY 2009 financial highlights – Revenues stable at high levels while costs declined Operating income per quarter Operating expenses per quarter 2,400 1,200 1,922 1,921 1,922 948 976 984 1,752 1,814 1,000 920 927 1,900 199 160 82 92 88 91 in EUR million 93 105 in EUR million 144 482 444 425 460 800 1,
Slide 11: Cost/income ratio reached record low in 2009
FY 2009 financial highlights – Cost/income ratio reached record low in 2009 − Net profit improved by 5.1% to EUR 903.4m − Decline in EPS due to 60m new shares issued in November Cash earnings per share * capital raising − NIM on interest bearing assets at highest ever level of 5.0 3.0% at FY 09 (FY
Slide 12: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary financials and segment reporting − Appendix 26 February 2010 Teleconference Vienna 12 Preliminary Results FY 09
Slide 13: Quarterly deposit trends by segment
Erste Group’s customer deposits – Quarterly deposit trends by segment − Total customer deposits increased by 2.5% in 2009 Customer deposit trends by main segments * − Deposit inflows and stabilisation of CEE currencies supported deposit growth 125 113 113 112 109 109 − Retail & SME deposits increase
Slide 14: Quarterly loan book trends by segment
Erste Group’s loan book – Quarterly loan book trends by segment − Customer loans increased by 2.3% in 2009 in line with Customer loans by main segments * continued slow demand since Q4 08 − Loans marginally declined 0.6% qoq 150 126.2 126.3 128.1 130.0 129.1 − Growth rates were also impacted by sign
Slide 15: Q3 trends sustained: deceleration of new NPLs
Risk profile benefits from business mix – Q3 09 trends sustained: deceleration of new NPLs − Continued slowdown in NPL growth in Q4 09 Erste Group: NPL ratio vs NPL coverage − Although the NPL ratio increased from 4.7% (FY 08) to 6.6% (FY 09), growth rates levelled off from +120bps in H1 09 to +70bp
Slide 16: Retail loan book analysis – Prudent lending criteria
Retail loan book analysis – Prudent lending criteria and risk mitigating factors − Selective lending criteria support solid customer profile − Erste Group’s borrowing customers across all CEE markets have an above average income − Prudent level of debt service to income ratio is applied for retail c
Slide 17: Managing financially stressed borrowers
Retail loan book analysis – Managing financially stressed borrowers − Selective approach − The objective is to support customers with positive mid- to long-term outlook and overcome temporary repayment problems. It is not a tactical but a strategic tool aimed at maintaining long-term customer relati
Slide 18: Quarterly risk costs (segment view)
Erste Group’s risk costs – Quarterly risk costs (segment view) Risk costs in key segments Quarterly risk cost development (main segments) 8% 7.12% 700 607 600 557 44 522 6% in EUR million 469 73 500 68 123 370 400 4% 3.23% 82 2.42% 300 563 2.02% 454 484 2% 200 346 0.76% 0.81% 288 100 0% 0 GCIB Austr
Slide 19: Retail funding providing stable support for future growth
Erste Group’s funding profile – Retail funding providing stable support for future growth − Customer deposits are the main source of funding − Providing a solid funding base in all local currencies Evolution of Erste Group's funding mix − Translating into stable loan/deposit ratio of 115% − Increase
Slide 20: IFRS total equity increased by EUR 5bn in 2009
Erste Group’s capital position – IFRS total equity increased by EUR 5bn in 2009 Total capital reconciliation 18 EUR 0.5bn private investors 16.1 EUR 1.2bn Republic of Austria 0.8 0.3 -0.3 -0.2 15 1.7 3.4 11.1 1.8 in EUR billion 12 1.0 3.0 9 6 12.7 8.1 3 0 Total Net Part cap New Result Other Dividend
Slide 21: Substantially improved capital ratios
Erste Group’s capital position – Substantially improved capital ratios Tier 1 ratio Tier 1 ratio Core tier 1 ratio (credit risk)1 (total risk)2 (total risk)3 +358 bps 10.8% +303 bps 9.2% +313 bps 8.3% 7.2% 6.2% 5.2% 2008 2009 2008 2009 2008 2009 1) Tier 1 ratio (credit risk) = tier 1 capital incl. h
Slide 22: Outlook – Cautiously optimistic about 2010
Outlook – Cautiously optimistic about 2010 − Market environment continues to improve gradually − Erste Group’s CEE markets will show slightly better growth than the rest of Europe − Situation remains fragile, particularly in IMF-supported countries − But momentum for recovery is substantially better
Slide 23: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary financials and segment reporting − Appendix 26 February 2010 Teleconference Vienna 23 Preliminary Results FY 09
Slide 24: Group income statement (IFRS)
Group income statement (IFRS) – Operating result close to record Q3 09 levels in EUR million 2009 2008 Change Q4 09 Q3 09 Q4 08 Net interest income 5,220.9 4,913.1 6.3% 1,380.0 1,335.6 1,339.8 Risk provisions for loans and advances (2,056.6) (1,071.4) 92.0% (607.4) (557.1) (469.1) Net fee and commis
Slide 25: Group balance sheet (IFRS) – Total assets unchanged yoy
Group balance sheet (IFRS) – Total assets unchanged yoy in EUR million Dec 09 Dec 08 Change Cash and balances with central banks 5,996 7,556 (20.6%) Loans and advances to credit institutions 13,140 14,344 (8.4%) Loans and advances to customers 129,134 126,185 2.3% Risk provisions for loans and advan
Slide 26: Loan to deposit ratio was stable at 115.3%
Group balance sheet (IFRS) – Loan to deposit ratio was stable at 115.3% in 2009 in EUR million Dec 09 Dec 08 Change Deposits by banks 26,295 34,672 (24.2%) Customer deposits 112,042 109,305 2.5% Debt securities in issue 29,612 30,483 (2.9%) Trading liabilities 3,157 2,519 25.3% Other provisions 1,67
Slide 27: Core segments – Strong performance of Group Markets
Core segments – Strong performance of Group Markets division Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Net interest income 4,532.5 4,399.2 570.5 469.3 193.2 263.8 (75.3) (219.1) 5,220.9 4,913.1 Risk provisions (1,788
Slide 28: Core segment – Austria
Core segment – Austria Strong performance sustained at EB Oesterreich Savings Banks EB Oesterreich Austria in EUR million 2009 2008 2009 2008 2009 2008 Net interest income 957.1 1,005.5 637.5 625.8 1,594.6 1,631.4 Risk provisions (331.3) (307.2) (151.4) (100.9) (482.7) (408.1) Net fee and commission
Slide 29: Core segment Central and Eastern Europe (1)
Core segment Central and Eastern Europe (1) – Solid improvement of NII in 2009 … Czech Republic Romania Slovakia Hungary in EUR million 2009 2008 2009 2008 2009 2008 2009 2008 Net interest income 1,083.0 1,108.1 836.8 749.5 385.9 340.4 353.6 298.7 Risk provisions (288.1) (131.9) (532.4) (129.0) (156
Slide 30: Core segment Central and Eastern Europe (2)
Core segment Central and Eastern Europe (2) – … but bottom line impacted by rising risk costs Croatia Serbia Ukraine CEE in EUR million 2009 2008 2009 2008 2009 2008 2009 2008 Net interest income 223.4 204.6 28.1 33.5 27.1 33.0 2,937.9 2,767.8 Risk provisions (74.5) (28.1) (7.0) (6.6) (76.7) (21.0)
Slide 31: Segment Retail & SME
Segment Retail & SME – Risk costs offsetting strong operating performance − Retail & SME segment is the key profit contributor at Segment operating performance Erste Group − Comprises retail, SME, local corporates, local ALM and local 2,000 1,619 1,622 1,637 1,473 1,551 corporate centers in Austria
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 120 105.2 105.0 106.8 108.9 108.6 100% 2.2% 2.2% 2.2% 5.6 5.6 14.7% 14.3% 14.2% 4.7 4.5 5.0 80% 90 in EUR billion 22.5% 22.7% 21.8% 41.6 41
Slide 33: Segment GCIB
Segment GCIB – Operating performance remained at high levels in 2009 − Operating result up 20.7% yoy (+14.4% qoq) to EUR Segment operating performance 556.0m − Revenues improved by 15.3% yoy mainly supported by NII 250 202 (+21.6% yoy), driven by re-pricing of loans 200 180 176 177 175 154 − Stable
Slide 34: Segment GCIB – Loan book analysis
Segment GCIB – Loan book analysis * Segment GCIB - Segment GCIB - Customer loans by currency Customer loans 30 100% 3.4% 1.2% 3.2% 1.3% 3.6% 1.3% 7.0% 6.4% 5.5% 14.0% 12.5% 12.5% 20.1 20.3 20.5 20.3 80% 19.5 in EUR billion 20 1.2 1.2 1.1 1.1 1.1 60% 40% 74.4% 76.6% 77.1% 10 18.9 19.1 19.5 19.3 18.4
Slide 35: Segment Group Markets
Segment Group Markets – Strong contribution despite substantially weaker H2 09 − Operating result was up 118.8% yoy to EUR 484.0m Segment operating performance despite a 66.1% decline qoq − Based on a net loss in Q4 08 and generally distorted markets in 250 229 214 2008 200 174 168 − After record re
Slide 36: Segment Corporate Center
Segment Corporate Center – Result boosted by cost savings − What is in the Corporate Center? Segment operating performance − Business areas which cannot be allocated to relevant business lines, one-offs and Group ALM 0 − Line-item analysis -20 (21) (18) − NII substantially improved by EUR 143.8m yoy
Slide 37: Retail & SME: Austria – EB Oesterreich
Retail & SME: Austria – EB Oesterreich − Operating result improved by 16.8% yoy (- 6.3% qoq) Segment operating performance − NII was up by 1.9% to EUR 637.5m (-4.6% qoq) on increased deposits driven by the building society business (+ 11.5%) as 300 240 240 239 well as a positive contribution from co
Slide 38: Segment EB Oesterreich: Loan book analysis
Retail & SME: Austria – Segment EB Oesterreich: Loan book analysis * Segment EB Oesterreich - Segment EB Oesterreich - Customer loans by Basel II customer segment Customer loans by currency 30 26.3 26.0 26.1 100% 1.8% 1.7% 1.9% 25.8 25.7 15.5% 15.2% 15.1% 1.5 1.4 1.3 1.4 1.4 80% in EUR billion 20 11
Slide 39: Retail & SME: Austria – Savings banks
Retail & SME: Austria – Savings banks − Stable operating result of EUR 488.0m compared to FY Segment operating performance 2008 − NII was down by 4.8% yoy while fee income increased by 3.1% 500 383 358 353 356 yoy on slightly improving securities business 400 335 − Very strong trading result (>200%)
Slide 40: Segment Savings banks: loan book analysis
Retail & SME: Austria – Segment Savings banks: loan book analysis * Segment Savings Banks - Segment Savings banks - Customer loans by Basel II customer segment Customer loans by currency 40 35.0 34.8 35.3 35.9 100% 3.0% 3.2% 3.0% 34.2 1.4 1.5 1.5 1.6 19.7% 19.3% 18.9% 1.4 80% 30 in EUR billion 14.5
Slide 41: Retail & SME: Czech Republic
Retail & SME: Czech Republic – Strong performance throughout 2009 − Operating result strongly improved by 8.4% (+14.1% FX-adjusted)1 to EUR 855.3, driven by: Segment operating performance − NII contribution declined by 2.3% yoy (+2.9%); pressure on 500 411 393 411 386 liability margins through lower
Slide 42: Segment 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 17.7 100% 0.2% 3.8% 0.1% 3.4% 0.1% 3.3% 16.1 16.9 16.7 15.9 0.6 0.6 16 0.7 0.5 0.5 80% in EUR billio
Slide 43: Retail & SME: Romania
Retail & SME: Romania – High risk costs offsetting strong operating performance − Operating result improved by 16.1% yoy (up 33.3% FX- Segment operating performance adjusted)1 and 29.1% qoq − Strong NII up 11.7% (28.2%) supported by strong loan growth in 400 306 2008; improved margins offsetting slo
Slide 44: Segment 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% 12 10.9 10.7 11.0 11.2 11.2 80% in EUR billion 0.8 0.8 0.8 1.2 1.2 54.3% 55.9% 56.6% 9 60% 4.1 4.2 4.4 4.4 4
Slide 45: Retail & SME: Slovakia
Retail & SME: Slovakia – Strong operating performance in H2 09 − Operating result increased by 12.3% yoy (+8.0% FX- Segment operating performance adjusted)1 − NII substantially improved by 13.3% yoy (+9.0%) despite lower 200 Q4 09 (-8.5% qoq). Improved asset & liability margins and solid 140 loan gr
Slide 46: Segment 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% 5.4 5.5 5.7 5.7 80% 6 5.2 in EUR billion 0.1 0.1 0.1 0.1 0.1 1.9 1.9 1.8 60% 2.0 2.0 4 0.4 0.3 99.2% 99.2
Slide 47: Retail & SME: Hungary
Retail & SME: Hungary – Solid operating performance − Operating performance remained strong: +up 21.7% Segment operating performance (+36.3% FX adjusted)1 yoy − Strongly supported by NII + 18.4% yoy (32.6%) backed by 150 130 131 122 strong loan growth in 2008 and ability to re-price assets; 109 dema
Slide 48: Segment 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% 21.1% 22.0% 22.6% 8 7.2 7.0 7.2 7.2 7.3 80% in EUR billion 0.3 0.3 0.3 0.3 0.3 6 2.5 2.3 2.4 2.4 2.4 60% 56.
Slide 49: Retail & SME: Croatia
Retail & SME: Croatia – Solid operating result − Operating result improved by 6.1% (+7.8% FX Segment operating performance adjusted)1 to EUR 176.2m yoy − NII continued to improve +9.2% (+10.9%) due to re-pricing of 100 assets partly offset by competition for deposits (loan/deposit 75 77 81 80 80 69
Slide 50: Segment 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 6 100% 0.1% 0.2% 0.2% 15.9% 15.3% 15.4% 4.6 4.8 4.7 4.1 4.2 0.3 80% 0.4 0.5 in EUR billion 0.1 0.1 4 1.6 1.7 1.7 1.9 60% 54.9% 58.0
Slide 51: Retail & SME: Serbia
Retail & SME: Serbia High margins support operating performance − Operating result improved by 2.2% yoy (17.6% FX- Segment operating performance adjusted)1 to EUR 11.0m in FY 09 despite slightly weaker Q4 09 performance, down 33.3% qoq 15 13 11 11 10 10 − NII declined by 16.0% (-3.3%) also impacted
Slide 52: Segment 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% 3.6% 1.2% 3.6% 0.9% 3.2% 518.2 461.5 464.6 459.0 9.2 2.5 424.8 2.3 2.2 80% in EUR million 2.4 400 360.8 60% 80.9% 77.1% 3
Slide 53: Retail & SME: Ukraine
Retail & SME: Ukraine – Performance impacted by limited business activies − Operating result was negative at EUR 0.3m as Segment operating performance a consequence of stopping lending activities since Q4 08 20 16 − Performance continued to improve substantially 15 11 10 compared to the previous yea
Slide 54: Segment 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% 616.4 598.2 0.0 556.5 80% 600 0.0 in EUR million 88.1 77.8 0.0 504.4 509.0 69.4 0.0 0.0 121.3 125.1 63.3 64
Slide 55: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and
Slide 56: Key topics: ABS/CDO portfolio
Key topics: ABS/CDO portfolio Portfolio continued to decline and prices improved − Face value of ABS/CDO exposure declined by EUR 463m since in FY 2009, due to: − Redemptions and amortisations of EUR 331m ABS/CDO portfolio by book (December 2009)* − Impairments of EUR 41m and divestments of EUR 90m
Slide 57: ABS/CDO portfolio – Detailed portfolio analysis
Key topics: ABS/CDO portfolio Detailed portfolio analysis ABS/CDO portfolio by ratings December2009)* ABS/CDO portfolio by region December 2009)* % of total % of total in EUR m Face Value Market Value +/-% in EUR m Face Value Market Value +/-% (market value) (market value) AAA 360 317 (11.9%) 18.1%
Slide 58: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and
Slide 59: Asset quality analysis – Key definitions
Asset quality analysis – Key definitions − Exposure is a measure of the entire credit risk Risk category Agency ratings of Erste Group, covering: − Loans and advances to customers and banks Low risk AAA to BB / − Fixed income securities in all portfolios (trading, Aaa to Ba fair value, available for
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 4.0% 6.0% 126.2 126.3 128.1 130.0 129.1 3.3% 6.0 5.9 6.1 6.7 6.7 3.2% 120 4.6% 37.7% in EUR billion 90 60.7 60.8 61.4 61.6 61.0 4.7% 60 13.1 13.4 13.7 13.8 13.4 5.7% 30 46
Slide 61: 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 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Retail & SME 77,484 79,659 18,512 1
Slide 62: 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 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Share of total Share of total Core market 85,141 88,432 20,937 18,494 5,910 3
Slide 63: 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 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Share of total Share of total Agriculture and forestry 1,040 993 596 532 142 134 155 128 1,93
Slide 64: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (31 December 2009: EUR 33.7 bn) (31 December 2009: EUR 33.7 bn) 31.0% 20.0% 3.4%3.0% 3.7% 9.0% 14.2% 15.3% 65.6% 3.8% 8.7% 4.2% 6.7% 6.0% AT CZ SK DE US IT HU RO GB Other EUR CZK USD HUF
Slide 65: Total exposure overview
Asset quality analysis – Total exposure overview Exposure by industries Exposure by risk category (31 December 2009: EUR 220.3 bn) 250 223 227 220 9.8% 216 217 3.5% 8 9 9 23.8% 6 7 4.4% 200 26 28 28 30 27 5.4% in EUR billion 150 100 178 175 178 180 177 6.8% 50 11.9% 24.4% 0 10.0% Finance/insurance H
Slide 66: NPLs and NPL coverage
Asset quality analysis – NPLs and NPL coverage (based on total exposure) Group NPL ratio vs group NPL coverage NPL distribution (31 December 2009: EUR 9.0 bn) 5.0% 100% 4.1% 2.3% 3.6% 3.8% 11.6% 4.0% 80% 3.3% 3.3% 31.4% 2.9% 3.0% 60% 6.2% 61.6% 58.3% 58.3% 55.5% 56.3% 2.0% 40% 4.8% 1.0% 20% 16.6% 14
Slide 67: Total exposure by segments
Asset quality – Total exposure by segments * Low risk Mgmt attention Substandard Non-performing Total exposure Risk provisions NPL coverage NPL ratio Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Retail & SME 118,844 118,606 21,092 19
Slide 68: Total exposure by regions
Asset quality – Total exposure by regions * Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Share of total Share of total Core market 138,774 138,299 24,176 23,354 7,330 5,418 8,097 5,719 178,378 8
Slide 69: Total exposure by industry sectors
Asset quality – Total exposure by industry sectors * Low risk Mgmt attention Substandard Non-performing Total exposure in EUR million Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Dec 09 Dec 08 Share of total Share of total Agriculture and forestry 1,209 1,139 664 588 147 156 156 138 2,176
Slide 70: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and
Slide 71: Key local entity data – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 2009 2008 Rate and margin environment Cost/income ratio 42.0% 45.7% Return on equity 19.3% 26.3% 80% 71.4% 70.3% 70.9% 72.9% 72.5% 8% Dec 09 Dec 08 Change Erste Group stake 97.99% Solvency ratio 12.3% 9.9% 60% 6% 4.
Slide 72: Key local entity data – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 2009 2008 Rate and margin environment Cost/income ratio 34.4% 41.4% 144.4% 148.4% 143.1% 143.2% 143.6% Return on equity 13.5% 38.2% 150% 15% Dec 09 Dec 08 Change Erste Group stake 69.17% 14.0% 13.3% 12% Solvency ratio 11.9% 11.3
Slide 73: Key local entity data – Slovenska sporitelna
Key local entity data (IFRS, consolidated) * – Slovenska sporitelna Key figures and ratios 2009 2008 Rate and margin environment Cost/income ratio 48.9% 49.8% Return on equity 3.9% 18.7% 100% 8% Dec 09 Dec 08 Change 77.5% Erste Group stake 100.0% 80% 66.7% 70.5% 70.5% 71.2% Solvency ratio 10.5% 9.8%
Slide 74: Key local entity data – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 2009 2008 Rate and margin environment Cost/income ratio 43.9% 50.6% Return on equity 14.8% 23.2% 270% 247.4% 12% Dec 09 Dec 08 Change 212.9% 216.2% Erste Group stake 99.94% 194.1% 182.1% 10% Solvency ratio 13.0% 1
Slide 75: Key local entity data – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 2009 2008 Rate and margin environment Cost/income ratio 40.4% 41.8% 118.4% 11.5% 110.2% 113.4% 111.9% Return on equity 13.1% 17.2% 120% 107.9% 12% Dec 09 Dec 08 Change Erste Group stake 65.03% 100% Solvency ratio
Slide 76: Key local entity data – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 2009 2008 Rate and margin environment Cost/income ratio 71.0% 72.2% Return on equity 3.6% 6.5% 18.8% 140% 17.6% 20% Dec 09 Dec 08 Change Erste Group stake 80.49% 120% 14.7% Solvency ratio 25.1% 26.6% 100% 118.2% 11
Slide 77: Key local entity data – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 2009 2008 Rate and margin environment Cost/income ratio 66.0% 72.5% 23.8% Return on equity na na 1600% 1373.6% 25% Dec 09 Dec 08 Change 1400% 19.0% Erste Group stake 100.0% 16.6% 20% Solvency ratio 17.6% 15.1% 120
Slide 78: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and
Slide 79: Erste Group historic financials – Quarterly income statement
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Net interest income 1,151.1 1,154.9 1,267.3 1,339.8 1,226.0 1,279.3 1,335.6 1,380.0 Net fee and commission income 491.9 510.3 486.8 482.1 444.6 443.6 425.1 459.5 Net tra
Slide 80: Erste Group historic financials – Quarterly balance sheet
Erste Group historic financials – Quarterly balance sheet (IFRS) in EUR million Mär 07 Jun 07 Sep 07 Dez 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Cash and balances with central banks 6,861 6,753 7,311 7,615 7,783 6,854 7,692 7,556 5,897 6,897 5,458 5,996 Loans and advances to credi
Slide 81: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME Group Corporate & Investment Banking Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Net interest income 1,205.5 1,092.4 1,105.8 1,174.0 1,160.2 134.0 138.7 134.1 141.9 155.8 Risk provisions (346.2) (287.
Slide 82: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Net interest income 174.3 158.7 166.3 159.9 152.5 283.8 246.7 224.4 246.2 239.8 Risk provisions (21.2) (36.4) (37.9) (39.2) (38.0) (129.9
Slide 83: Central and Eastern Europe sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) in EUR million Czech Republic Romania Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Net interest income 303.2 268.9 261.1 292.0 261.0 206.9 194.8 196.0 199.5 246.5 Risk provisions (42.9) (41.2) (79.5) (82.3) (84.
Slide 84: Central and Eastern Europe sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Net interest income 52.3 50.7 57.2 57.6 58.0 9.3 7.7 8.1 6.1 6.2 Risk provisions (10.1) (9.0) (16.8) (19.6) (29.1) (2.4) (1.4) (2.6) (2.
Slide 85: Presentation topics
Presentation topics − Overview of key ratios and macro trends − Summary and FY 2009 highlights − FY 2009 key topics − FY 2009 preliminary financials and segment reporting − Appendix − ABS & CDO portfolio (details) − Asset quality (details) − CEE local statements − Quarterly results − Key ratios and
Slide 86: Group statistical data
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 Dec 09 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 Total own funds pursuant to
Slide 87: Shareholder structure
Shareholder structure – Total number of shares: 377,925,086 By investor By region Criteria CaixaCorp S.A. Others 0.9% Continental 10.1% Europe 20.6% 26.1% Austria 50.1% Employees UK & Ireland 3.3% 12.1% Institutional Savings banks investors 6.8% 47.1% Private North America investors 16.3% 6.6% updat
Slide 88: 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 0100-112