Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q3 2020 Earnings Presentation
69 slides from Erste Group Bank's earnings presentation, Nov 2, 2020
Slide 1: Erste Group investor presentation Q3 2020 results
Erste Group investor presentation Q3 2020 results 2 November 2020 Improving operating performance and lower risk costs – conditional dividend proposal of EUR 0.75 per share for 2019 Bernd Spalt, CEO Erste Group Stefan Dörfler, CFO Erste Group Alexandra Habeler-Drabek, CRO Erste Group Page
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 • Key topics amid Covid 19 • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q3 20 presentation • Executive summary • Business environment • Busi
Slide 4: CEE Covid-19 evolution update
CEE Covid-19 evolution update – Number of positively tested persons rises across CEE, Europe • Main features of current virus spread in Central and Eastern Europe • Coronavirus has gone mainstream, reaching all sections of the population, while proliferation in spring was immaterial in Central and E
Slide 5: Macroeconomic update (1)
Macroeconomic update (1) – CEE tackles Covid-19 challenge from a position of strength Economy Banking markets Subsidiary banks • Strong labour markets • Deposit overhang & excess liquidity on • Fully self-funded business model as • Unemployment rates at historic lows in system level in all key marke
Slide 6: Macroeconomic update (2)
Macroeconomic update (2) – 2020 will see economic slump, partial rebound expected in 2021 • Real GDP to decline 4%-9% in 2020 in Erste Group’s core markets CEE Recovery Index • Both exports and consumption will suffer in 2020 1.2 (0 = point of lowest activity, based on weekly indicators) • Hardest h
Slide 7: Business update (1) – Retail – what's happening on the ground?
Business update (1) – Retail – what‘s happening on the ground? • Diverging demand trends in Q3 20 Monthly new sales volumes • Continued strong demand for housing loans; customers see importance (2019 vs 2020, in EUR million) of owning real-estate Housing loans Consumer loans • Lower demand for consu
Slide 8: Business update (2) – Corporates – what's happening on the ground?
Business update (2) – Corporates – what‘s happening on the ground? • Clients continue to adjust Corporate loan stock development • Loan demand is still increasing, but at a slowing pace in Q3 (gross, business line view, in EUR bn) • State guaranteed loan programmes mostly done in Austria; guaranteed
Slide 9: Understanding operating trends (1)
Understanding operating trends (1) – Low single-digit underlying net loan growth expected in 2020 • Qoq net loan growth amounted to +0.5% in Q3 (Q2 20: +1.6%) Composition of net loan growth in Q3 20 • Impact of state-guaranteed loans: approx. EUR +0.8bn (in EUR bn) • Moratoria effect (reduced redemp
Slide 10: Understanding operating trends (2)
Understanding operating trends (2) – Strong NII and fee performance in Q3 20, while costs were flat • NII improved in Q3 20, both qoq and yoy NII development • NII continues to get accrued for moratoria loans, only PV- negative modification losses lead to negative impact on NII (EUR 5.5m in Q3 20 vs
Slide 11: Credit risk – Risk provisions
Credit risk – Risk provisions: heavy-lifting executed in Q2, lower risk costs expected in 2021 • Total risk provisions of EUR 194.7m or 46bps in Q3 20 Risk cost development in 2020e • September review of macro forecasts did not lead to significant (baseline scenario, in bps of average gross customer
Slide 12: Credit risk – Asset quality
Credit risk – Asset quality: NPL ratio stable ytd as NPL coverage continues to build Development of NPL ratio Development of NPL coverage in % in % 91.1 95.5 2.5 77.1 80.9 2.4 2.4 2.4 2019 Q1 20 Q2 20 Q3 20 2019 Q1 20 Q2 20 Q3 20 • Stable NPL ratio year-to-date • NPL coverage at multi-year high of 9
Slide 13: Credit risk – Gross credit exposure overview
Credit risk – Gross credit exposure overview Gross credit exposure by NACE code Focus exposures (gross) of which Industry / as of Savings Comments Category Sep 20 Banks Transport & comms Tourism • Demand from construction industry Other 3% 2% compensated partially for lower capacities in Constructio
Slide 14: Credit risk – Further details on selected exposures
Credit risk – Further details on selected exposures Snapshot: real estate* Snapshot: consumer loans RRE - Non-profit housing associations Czechia RRE - Other RRE for rent & sale Austria Savings banks 3% 8% RRE - Development projects 19% 19% Austria EBOe* 24% Mixed portfolio Slovakia CRE - Office Cro
Slide 15: Capital position – Strong fully loaded CET1 ratio
Capital position – Strong fully loaded CET1 ratio of 14.1% with additional cushion in % 0.55 0.25 0.28 0.06 14.15 0.52 0.26 0.12 0.30 13.72 FL CET1 target: 13.5% Reg. min CET1 10.2% (MDA threshold; P2G excluded) YE’19 ∆ RWA SME ∆ RWA Other OCI Minorities H1’20 Profit Accrual for Change of CET1 - oth
Slide 16: Conclusion – Key takeaways and outlook for 2020/21
Conclusion – Key takeaways and outlook for 2020/21 Q3 20 key takeaways 2020/21 outlook • After initial Covid-19 shock, adoption of more • Real GDP decline of between 4-9% expected in Operating pragmatic approaches, aiming to keep industry open 2020, Q4 restrictions not yet incorporated environment •
Slide 17: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q3 20 presentation • Executive summa
Slide 18: Executive summary – Group income statement performance
Executive summary – Group income statement performance QoQ net profit reconciliation (EUR m) YoY net profit reconciliation (EUR m) +487.0% -47.9% 1,223 0 108 38 87 48 343 419 913 637 146 87 165 58 5 5 Q2 20 Operating Operating Risk costs Other Taxes on Minorities Q3 20 1-9 19 Operating Operating Ris
Slide 19: Executive summary – Key income statement data
Executive summary – Key income statement data Net interest income & margin Operating result & cost/income ratio Cost of risk 2.17% in EUR m in EUR m in EUR m 2.09% -3.2% 614 2,233 1.48% 2.04% 2.04% 2,163 3,517 3,589 870 55.5% 55.6% 0.46% 805 806 1,168 1,192 195 -43 1-9 19 1-9 20 Q2 20 Q3 20 1-9 19 1
Slide 20: Executive summary – Group balance sheet performance
Executive summary – Group balance sheet performance YTD total asset reconciliation (EUR m) YTD equity & total liability reconciliation (EUR m) +10.7% +10.7% 271,983 271,983 37 94 961 2,618 4,245 696 2,216 1,325 10,983 17,155 13,293 245,693 245,693 424 31/12/19 Cash Trading, Loans to Net loans Intang
Slide 21: Executive summary – Key balance sheet data
Executive summary – 31/12/19 Key balance sheet data 30/09/20 Loan/deposit & loan/TA ratio Net loans & credit RWA NPL coverage ratio & NPL ratio in EUR bn 92.2% 89.0% +2.6% 95.5% 65.2% 60.5% 160.3 164.5 77.1% 100.4 97.7 2.5% 2.4% Loan/deposit ratio Loans/total assets Net loans Credit RWA NPL coverage
Slide 22: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q3 20 presentation • Executive summa
Slide 23: Business environment – Recession in 2020, partial rebound in 2021
Business environment – 2020 2021 Recession in 2020 due to Coronavirus; partial rebound expected in 2021 Real GDP growth (in %) Dom. demand contribution* (in %) Net export contribution* (in %) Consumer price inflation (avg, in %) 6.0 5.2 4.3 4.0 3.9 4.7 5.0 4.4 4.2 2.6 3.1 3.3 3.3 3.1 2.0 3.2 2.7 2.8
Slide 24: Business environment – Policy rate cuts across CEE
Business environment – 3M Interbank 10YR GOV Policy rate cuts in across CEE Austria Czech Republic Romania 0.11% 1.00% 4.61% 4.41% 4.21% 3.88% -0.17% 2.10% 0.91% -0.08% 1.12% 0.58% -0.29% 0.34% 1.61% -0.34% -0.39% 1.02% 3.00% 2.24% -0.30% 2.34% 1.91% -0.47% 1-9 19 1-9 20 Q2 20 Q3 20 1-9 19 1-9 20 Q2
Slide 25: Business environment – CEE currencies weaker versus the euro
Business environment – CEE currencies have weakened versus the euro since Covid-19 outbreak EUR/CZK EUR/RON +2.7% -2.2% +6.4% +1.9% +0.2% +1.8% 25.7 26.4 27.1 26.5 25.4 27.1 4.74 4.83 4.84 4.84 4.79 4.87 1-9 19 1-9 20 Q2 20 Q3 20 31/12/19 30/09/20 1-9 19 1-9 20 Q2 20 Q3 20 31/12/19 30/09/20 • CZK re
Slide 26: Business environment – Stable market shares across the region
Business environment – 30/09/19 30/06/20 Stable market shares across the region 30/09/20 Gross retail loans Gross corporate loans Retail deposits Corporate deposits 20.7% 21.9% 20.5% 21.9% AT 20.4% AT 22.1% AT 21.2% AT 23.7% 23.6% 21.7% 25.5% 12.3% CZ 23.8% CZ 21.1% CZ 25.4% CZ 12.7% 23.9% 21.0% 25.
Slide 27: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q3 20 presentation • Executive summa
Slide 28: Business performance: performing loan stock & growth
Business performance: performing loan stock & growth – YoY 30/09/19 QoQ 30/06/20 Performing loans continued to grow, supported by state guarantees 30/09/20 156.8 4.8% • Yoy development more pronounced in Corporates (+5.9%) Group 163.3 164.3 0.6% than in Retail (+2.5%); solid contribution from Saving
Slide 29: Business performance: customer deposit stock & growth
Business performance: customer deposit stock* & growth – YoY 30/09/19 QoQ 30/06/20 Deposit build-up continues in Q3 20 30/09/20 172.5 7.1% • Continuation of exceptional deposit growth across most Group 182.7 184.8 1.2% geographies despite zero/low interest rate environment as 36.8 retail and corpora
Slide 30: Business performance: NII and NIM
Business performance: NII and NIM – Q3 19 Q2 20 NII increases yoy and qoq Q3 20 1,188 2.14% • Yoy NII slightly up as improvements across most Group 1,168 2.04% 1,192 2.04% geographies, more than offset decline in CZ resulting from 165 1.57% rate cuts and CZK depreciation AT/EBOe 160 161 1.56% 1.49%
Slide 31: Business performance: operating income
Business performance: operating income – YoY Q3 19 QoQ Q2 20 Stable revenues confirm solid business model Q3 20 1,801 0.7% • Yoy development driven by improved trading and FV result Group 1,809 1,814 0.3% and slightly better NII, offsetting minor decline in net fee and 281 commission income (-2.4%)
Slide 32: Business performance: operating expenses
Business performance: operating expenses – YoY Q3 19 QoQ Q2 20 Continued cost discipline results in lower expenses yoy Q3 20 1,015 -0.6% • Yoy costs continue positive development; higher wages and Group 1,003 0.5% higher IT expenses offset by lower consulting and marketing 1,008 expenses 165 1.1% AT
Slide 33: Business performance: operating result and CIR
Business performance: operating result and CIR – YoY Q3 19 QoQ Q2 20 CIR at 55.6% in Q3 20 Q3 20 Operating result YoY & QoQ change Cost/income ratio 786 56.3% Group 805 2.4% 0.0% 55.5% 806 55.6% 117 58.5% AT/EBOe 118 -2.5% 58.1% -3.7% 59.4% 114 143 64.6% AT/SB 167 9.8% -5.9% 61.1% 157 62.5% 89 51.6%
Slide 34: Business performance: risk costs
Business performance: risk costs (abs/rel*) – Q3 19 Q2 20 Risk cost development in line with guidance Q3 20 0 0.00% • Yoy higher risk costs due to releases in Q3 19 and Covid-19 Group 614 1.48% related allocations in Q3 20 195 0.46% • Qoq risk cost development driven by updated risk parameters 4 0.0
Slide 35: Business performance: non-performing loans and NPL ratio
Business performance: non-performing loans and NPL ratio – 30/09/19 30/06/20 NPL ratio stable at 2.4% 30/09/20 4,290 2.7% • NPL volume continues to decline and stood at EUR 4.0bn in Group 4,043 2.4% 3,983 2.4% Q3 20. NPL volume development driven by lower level of 470 1.4% gross new inflows due to g
Slide 36: Business performance: allowances for loans and NPL coverage
Business performance: allowances for loans and NPL coverage – 30/09/19 30/06/20 NPL coverage rises to multi-year high of 95.5% 30/09/20 3,282 76.9% • NPL coverage increases yoy and qoq due to rising Group 3,662 91.1% 3,789 95.5% allowances 303 64.5% AT/EBOe 333 73.6% 339 79.5% • Year-on-year segment
Slide 37: Business performance: other result
Business performance: other result – Q3 19 Q2 20 Other result stable in the absence of major one-off effects Q3 20 -40 • Yoy and qoq other operating result remain relatively stable, Group -43 -42 minor effects across geographies -8 AT/EBOe 9 -6 • Year-on-year segment trends: -10 • AT/SB: other opera
Slide 38: Business performance: net result
Business performance: net result – Q3 19 Q2 20 Net profit rebounds qoq after Covid-19 induced rise in risk costs Q3 20 491 • Yoy profitability hit by Covid-19 induced risk cost Group 58 development; more than offsetting improved operating result 343 • Qoq performance driven by lower risk costs, whil
Slide 39: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q3 20 presentation • Executive summa
Slide 40: Assets and liabilities: YTD overview
Assets and liabilities: YTD overview – Loan/deposit ratio at 89.0% (Dec 19: 92.2%) Assets (EUR bn) Assets (in %) Liabilities & equity (EUR bn) Liabilities & equity (in %) 272.0 272.0 100% 2.8 100% 4.4% 5.3% 1.0% 245.7 27.8 10.2% 245.7 26.4 9.7% 1.0% 10.7 2.4 18.0% 13.1 46.5 17.1% 44.3 9.4% 23.1 25.7
Slide 41: Assets and liabilities: customer loans by country of risk
Assets and liabilities: customer loans by country of risk – Net customer loans up 2.7%, NPLs down 7.0% ytd Net customer loans (EUR bn) Performing loans (EUR bn) Non-performing loans (EUR bn) +2.7% +3.2% 160.2 163.7 164.5 159.3 163.3 164.3 5.9 5.7 5.9 5.7 -3.8% 5.2 8.8 8.5 5.2 8.5 8.5 2.1 8.4 8.8 1.9
Slide 42: Assets and liabilities: financial and trading assets
Assets and liabilities: financial and trading assets* – LCR at excellent 179.4% By geography By debtor type Liquidity buffer +4.0% in EUR bn in EUR bn 44.3 43.0 41.4 100% 12.5% 8.7% 7.8% 25.9% 10.7 8.4% 9.7% 24.6% 10.6 9.1% 23.0% 10.0 64.8 0.7 0.8 0.6 3.6 3.4 55.5 55.9 3.6 5.6 5.8 5.7 6.2 6.2 5.2 83
Slide 43: Assets and liabilities: customer deposit funding
Assets and liabilities: customer deposit funding – Customer deposits* up 6.3% ytd, driven by households By customer type By product type Highlights in EUR bn in EUR bn • Continued deposit inflows driven by Retail +6.3% segment with strong contribution from Corporate segment (esp. public sector) with
Slide 44: Assets and liabilities: debt vs interbank funding
Assets and liabilities: debt vs interbank funding – Reduced wholesale funding reliance, as customer deposits grow strongly Debt securities issued Interbank deposits in EUR bn in EUR bn -2.3% +101.2% 30.4 29.4 29.7 26.4 Sub debt 2.9 Overnight deposits 6.0 Senior non-preferred bonds 5.2 5.5 22.0 Term
Slide 45: Assets and liabilities: LT funding
Assets and liabilities: LT funding – Stable LT funding needs in 2020 Maturity profile of debt in EUR bn 3.6 3.0 3.2 2.7 2.7 2.4 2.1 1.4 1.2 0.9 0.6 0.7 0.1 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ Senior unsec. bonds Senior non-preferred bonds Covered bonds Capital exc Tier
Slide 46: Assets and liabilities: LT funding – Targeting MPE approach
Assets and liabilities: LT funding – Targeting MPE approach Resolution strategy Austrian resolution group • Direct presence in 7 geographically connected countries • Major entities within the Austrian resolution group*: • Erste Group’s setup suggests a multiple point of entry (MPE) • Erste Group Ban
Slide 47: Assets and liabilities: LT funding – MREL issuance volume
Assets and liabilities: LT funding – Expected total MREL-related issuance volume unchanged MREL resolution groups (June 2020) Preliminary 5-year issuance plan (avg. p.a.) in EUR bn in EUR m 163 3,500-5,000 74 62 20 19 16 8 ~400-500 ~200-300 ~100-300 ~100-300 8 10 7 9 6 ~100-150 AT CZ SK RO HR HU Hol
Slide 48: Assets and liabilities: MREL for the Austrian resolution group
Assets and liabilities: MREL for the Austrian resolution group MREL requirement based on RWA fulfilled MREL ratio based on TREA (RWA)* Key take-aways in % • Erste Group’s setup is based on a multiple point of entry 30.07% (MPE) resolution approach • In April 2020, Erste Group Bank AG received its MR
Slide 49: Assets and liabilities: capital position
Assets and liabilities: capital position – CET1 ratio at a strong 14.1%, phased-in at 14.2% Basel 3 capital Risk-weighted assets Basel 3 capital ratios in EUR bn in EUR bn 19.3% 19.1% 18.5% 17.7% 17.7% 22.0 22.0 22.4 121.4 118.6 120.5 21.5 21.3 115.3 116.1 15.9% 15.9% 3.2 15.0% 2.8 14.8% 3.4 3.3 14.
Slide 50: Presentation topics
Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • Operating trends • Asset quality and impairments • Capital trends and dividends • Key takeaways and outlook • Q3 20 presentation • Executive summa
Slide 51: Additional information: segment structure
Additional information: segment structure – Business line and geographic view Erste Group – Business segments ALM & Group Group Savings Intragroup Retail Corporates Local CC Corporate Markets Banks Elimination (ALM&LCC) Center • SME • Other Subsidiaries • Large Corporate • Asset/Liability Management
Slide 52: Additional information: income statement
Additional information: income statement – Year-to-date and quarterly view Year-to-date view Quarterly view in EUR million 1-9 19 1-9 20 YOY-Δ Q3 19 Q2 20 Q3 20 YOY-Δ QOQ-Δ Net interest income 3,517.4 3,589.3 2.0% 1,187.7 1,167.9 1,192.4 0.4% 2.1% Interest income 4,139.4 3,882.9 -6.2% 1,397.4 1,253.
Slide 53: Additional information: group balance sheet – Assets
Additional information: group balance sheet – Assets Quarterly data Change in EUR million Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 YOY-Δ YTD-Δ QOQ-Δ Cash and cash balances 15,638 10,693 23,031 18,433 27,848 78.1% >100.0% 51.1% Financial assets held for trading 7,215 5,760 7,706 6,984 6,764 -6.3% 17.4% -3.
Slide 54: Additional information: group balance sheet – Liabilities and equity
Additional information: group balance sheet – Liabilities and equity Quarterly data Change in EUR million Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 YOY-Δ YTD-Δ QOQ-Δ Financial liabilities held for trading 2,751 2,421 3,322 2,737 2,845 3.4% 17.5% 4.0% Derivatives 2,411 2,005 2,945 2,308 2,253 -6.5% 12.3% -2
Slide 55: Additional information: regulatory capital position/requirement (SREP)
Additional information: regulatory capital position/requirement (SREP) – Capital requirements (SREP) for 2020; Erste Group target of 13.5% unchanged • Combined impact of reduced countercyclical buffers results in expected 18 bps at year-end 2020 Erste Group Consolidated Erste Group Unconsolidated EC
Slide 56: Capital position – regulatory quick fixes
Capital position – Erste Group applies regulatory quick fixes conservatively Applied by Phased-in/ Estimated impact Quick Fix From Comment Erste Group Fully loaded on CET1 ratio* SME Supporting Regulator pulled forward permanent Q2 20 Fully loaded +55 bps Factor introduction from 2021 to Q2 20 Sover
Slide 57: Additional information: gross customer loans
Additional information: gross customer loans – By risk category, by currency, by industry Gross cust. loans by risk category (EUR bn) Gross customer loans by currency (EUR bn) Gross customer loans by industry (EUR bn) 164.3 167.4 168.3 164.3 167.4 168.3 167.4 168.3 161.1 163.4 161.1 163.4 164.3 4.0
Slide 58: Additional information: footprint
Additional information: footprint – Customer banking in Austria and the eastern part of the EU Erste Group footprint Highlights Czech Republic Slovakia • Leading retail and corporate bank Customers: 4.5m Customers: 2.2m in 7 geographically connected Employees: 9,914 Employees: 3,795 countries CZ Bra
Slide 59: Additional information: strategy
Additional information: strategy – A real customer need is the reason for all business Customer banking in Central and Eastern Europe Eastern part of EU Focus on CEE, limited exposure to other Europe Retail Corporate Capital Public Interbank banking banking markets sector business Focus on customer
Slide 60: Additional information: Ratings – Composition of issuer ratings
Additional information: Ratings – Composition of Erste Group Bank AG’s issuer ratings SACP - Stand-Alone Credit Profile VR - Viability Rating a (Individual Rating ) ▲ a- Anchor bbb+ Business Position Strong +1 Capital & Earnings Adequate 0 Risk Position Adequate 0 SRF - Support Rating Floor Funding
Slide 61: Additional information: ESG ratings, indices and alignment with UN SDGs
Additional information: ESG ratings, indices and alignment with UN SDGs ESG Indices and Ratings UN Sustainable Development Goals In principle, Erste Group supports all SDGs. Given its regional footprint Erste Group has been included in the Vienna Stock and business model, Erste Group is in fact able
Slide 62: Additional information: shareholder structure
Additional information: shareholder structure – Total number of shares: 429,800,000 By investor By region Unidentified * Erste Foundation 1 Unidentified * Identified Trading ** 9.44% 11.41% Identified Trading ** 9.44% Savings Banks & BlackRock Inc. 2.02% Savings Banks Rest of world 2.02% Austria Fou
Slide 63: The monetary policy reaction
The monetary policy reaction – A combination of rate cuts and quantitative easing Type of measures • ECB (as part of the euro zone, actions applicable in AT & SK) cut its key rate to 0% in 2016; cut the deposit rate by 10 bps to -0.5% in 2019 • ECB lowered financing costs for banks (TLTRO 3, PELTRO)
Slide 64: The regulatory reaction
The regulatory reaction – Pragmatism paired with dividend restrictions Type of measures • ECB has extended its recommendation for banks not to pay dividend and not to buy back shares until December 2021 • Recalibration of SRB and OSII buffers to 1% will become effective in December 2020 • Financial
Slide 65: The political/fiscal reaction
The political/fiscal reaction – Lockdowns followed by fiscal support measures across CEE Loan moratoria/payment holidays ✓ ✓ ✓ ✓ ✓ ✓ ✓ Loan guarantees, bridge loans ✓ ✓ ✓ ✓ ✓ ✓ ✓ Labour market support (eg short-time work schemes) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Tax incentives (Cuts, holidays, deferrals)
Slide 66: The political/fiscal reaction – Details on moratoria
The political/fiscal reaction – Details on moratoria Opt-in / Retail / Partici- Main characteristics Period Opt-out Corporate pation Extended to 10 • Statutory Retail Retail: 5% Opt-in months (until • Interest charged during deferral period & paid after the moratoria Micro Corp: 2% January 2021) • S
Slide 67: The political/fiscal reaction – Details on loan guarantees
The political/fiscal reaction – Details on loan guarantees Main characteristics Guarantee Interest Period Subsidised • EUR 18bn programme for loans and guarantees for enterprises, especially SMEs Up to 100% (varies by 2-5 years • Bridging loans in case of liquidity shortages products) • EUR 33bn (CO
Slide 68: Our response to Coronavirus
Our response to Coronavirus – Erste Group is there for its customers, communities and employees Employees Retail customers Corporate customers Communities Majority of HQ employees in Branches remaining open & Expanding client advisory & Supporting health care workers, home office extending online se
Slide 69: Investor relations details
Investor relations details • Erste Group Bank AG, Am Belvedere 1, 1100 Vienna E-mail: investor.relations@erstegroup.com Internet: http://www.erstegroup.com/investorrelations http://twitter.com/ErsteGroupIR http://www.slideshare.net/Erste_Group Erste Group IR App for iPad, iPhone and Android http://w