Balance sheet press conference February 28, 2007

Transcription

1 Balance sheet press conference

2 Erste Bank Group 95% of Erste Bank 15.9m customers are citizens of the EU Customers: 5.3m; #1 Retail deposits: 33% Retail loans: 32% Branches: 637 Customers: 0.6m; # 2 Retail deposits (incl. SBs): 21% Retail loans (incl. SBs): 19% Branches: - Owned branches : Savings bank subsidiary branches: 134 Customers: 2.2m Branches: 708 Customers: 2.5m; #1 Retail deposits: 32% Retail loans: 25% Branches: 271 Customers: 0.9m; #2 Retail deposits: 6% Retail loans: 9% Branches: 182 Bank Prestige Founded December Customers: 3.5m; #1 Retail deposits: 32% Retail loans: 28% Branches: 473 Customers: 0.6m; #3 Retail deposits: 11% Retail loans: 12% Branches: 112 Customers: 0.2m; ~#9 Retail deposits: 2% Retail loans: 2% Branches: 60 2

3 Strong lending growth (by region) Growth in Central Europe +68.2% Rising demand for personal and residential loans leads to strong loan growth in Central Europe Moderate growth in Austria based on retail and residential volume increases Customer loans by regions (in EUR billions) Customer loans in Central Europe (in EUR billions) ,967 61, % ,910 65, ,606 3,901 2, % , ,091 5,190 3,761 9,773 11,974 Österreich Austria and undother übrige countries Länder Zentral- Central & and Osteuropa Eastern*) Europe *) CS SLSP EBH EBC EBS BCR *) Based on local figures 3

4 Strong growth in deposits (by region) Growth in Central Europe +48.3% Strong growth in deposits in Central Europe Customer deposits by region (in EUR billions) Customer deposits in Central Europe (in EUR billions) , % , ,302 2,799 4, % , ,002 3,197 6,099 46,317 51,598 16,605 19, Österreich Austria and other und übrige countries Länder Zentral- Central and & Osteuropa Eastern Europe *) *) CS SLSP EBH EBC EBS BCR *) Based on local figures 4

5 Financial highlights» Net profit up 30.1% to EUR million (: EUR million)» Rise of 20.2% to EUR million excl. BCR» Total assets up by 19.0% to EUR billion» Increase of 8.4% excl. BCR» Core capital ratio: 6.6%» Following closing of BCR in Oct.» Cash earnings per share reached EUR 3.14» Excl. EUR 18 million goodwill write-off BCR» Cash return on equity: 13.8% in EUR Earningsper pershare share(cash) * (cash)* Cost/income ratio Cost/income ratio (cash)* Return on equity (cash) * Return on equity (cash)* 70% 65% 60% 67.9% 64.2% 64.1% 61.7% 59.5% 25% 20% 15% 10% 5% 15.3% 16.6% 17.0% 19.5% 13.8% 13.7% 55% % *) The red bars designate EPS and ROE (earnings per share and return on equity). The decline in reported and cash ROE already reflects the capital increase in January. The calculation of earnings per share is based on the average number of shares for the period in question (excluding treasury shares and shares held by Sparkassen savings banks with shareholdings in EB). 5

6 Overview of key figures Net interest income % to EUR 3,189.3 million Net commission income % to EUR 1,445.9 million Operating income % to EUR 4,948.9 million General and administrative expenses % to EUR 2,945.3 million Operating result % to EUR 2,003.6 million Pre-tax profit % to EUR 1,522.2 million 6

7 Overview of key figures Net profit after tax % to EUR million Total assets % to EUR billion Core capital ratio 6.6 % Dec. : 6.8 % 7

8 Operating result segmental level detail in EUR million Chg. Austria % Joint liability scheme % Retail & residential % Own branches % SMEs % Own Savings Bank % Residential % Major customers % Trading & Investment Banking % Central and Eastern Europe % Czech Republic % Rumania Slovakia % Hungary % Croatia % Serbia >100.0% International business % Corporate Center % Total EB Group 2, , % 8

9 Development in Central Europe Local net earnings (IFRS) *) 97.99% 69.15% % in EUR million Chg. Chg. Chg. Consolidated net profit % **) % % Return on equity 23.0% 22.3% 18.8% 17.6% 20.3% 19.3% Cost/income ratio 53.7% 56.9% 55.3% 57.2% 54.1% 55.4% Dec 06 Dec 05 Chg. Dec 06 Dec 05 Chg. Dec 06 Dec 05 Chg. Total assets 26, % 14,020 10, % , % Employees 10, % 13,492 13, % 4,797 4, % *) exchange rates were used in both the income statement and the balance sheet to eliminate currency exchange effects. Proportional consolidation of BCR and Erste Bank Serbia commenced on October 12, and August 1, respectively. **) Result following restructuring costs 9

10 Development in Central Europe Local net earnings (IFRS) 99.94% 64.94% 99.99% in EUR million Chg. Chg. Chg. Consolidated net profit % % >100.0% Return on equity 25.2% 26.2% 18.7% 20.2% Cost/income ratio 54.8% 57.4% 50.7% 50.1% 231.3% 85.6% Dec 06 Dec 05 Chg. Dec 06 Dec 05 Chg. Dec 06 Dec 05 Chg. Total assets 7,069 5, % 4,854 4, % % Employees 2,881 2, % 1,759 1, % % 10

11 Erste Bank Group Balance sheet and income statement

12 Balance sheet in EUR million ASSETS Change in % Loans and advances to credit institutions 16,616 16, Loans and advances to customers 97,107 80, Risk provisions for loans and advances -3,133-2, Trading and financial assets 42,497 39, Other assets 28,616 18, Total assets 181, ,

13 Balance sheet (assets) in EUR million 200, , , , , ,000 9,788 4,290 27,217 9,807 4,989 32,873 10,089 6,125 35,071 8,883 7,066 39,455 18,154 7,329 42,497 9,664 7,280 42,091 80,000 60,000 40,000 64,435 67,766 72,843 80,419 97,107 89,479 20, ,492 13,140 15,684 16, adapted 16,616 incl. BCR 17,001 excl. BCR Loans and advances to credit ins titutions Financial as s ets (FV,AfS,HtM,T) Other ass ets Loans and advances to cus tom ers Inves tm ents of ins urance com panies 13

14 Balance sheet in EUR million LIABILITIES AND SHAREHOLDERS' EQUITY Change in % Amounts owed to credit institutions 37,688 33, Amounts owed to customers 90,849 72, Debts evidenced by certificates 21,814 21, Other liabilities 15,238 14, Subordinated capital 5,210 4, Total equity 10,904 6, Shareholders' equity 7,979 4, Minority interests 2,925 2, Total liabilities and equity 181, ,

15 Balance sheet (liabilities and shareholders' equity) in EUR million 200, , , , , ,000 80,000 60,000 15,912 17,577 61,308 17,550 20,482 64,839 19,632 23,416 68,213 20,375 25,581 72,793 26,142 27,024 90,863 24,727 25,780 83,595 40,000 20, ,425 25,704 28,551 33, adapted Shareholders' equity and other as s ets Debts evidenced by certificates and s ubordinated capital Am ounts owed to custom ers Am ounts owed to credit ins titutions 37,688 incl. BCR 31,427 excl. BCR 15

16 income statement according to IFRS in EUR million Change in % I. Net interest income 3, , Risk provisions for loans and advances ,6 4.2 Net commission income 1, , Net trading result General and administrative expenses -2, , Income from insurance business Other operating result II. Pre-tax profit 1, , Taxes on income III. Net profit before minority interests 1, Minority interests IV. Net profit after minorities

17 Operating result & consolidated net profit in EUR million 2, , ,659 1,913 1, ,370 1,454 1,151 1, adapted incl. BCR excl. BCR Operating result Consolidated net profit 17

18 Divisional results core segments Result increased in all core segments CEE share of consolidated net profit 60.5% (: 61.0%) Cost/income ratio reduced in almost all segments Operating revenues (in EUR million) General admin. expense (in EUR million) Net profit after tax and minorities (in EUR million) , % , % , % ,555 2, ,633 1, Austria CEE subsids. Int. business Corp. Center 18

19 Retail & residential - details Retail and residential - improved results in all divisions Operating earnings (in EUR million) Net profit (in EUR million) Filialen KMU Eigene Own Branches SMEs Savings Sparkassen Bank Mortgage Wohnbau Subsidiaries Sonstige Beteiligungen Filialen KMU Eigene Branches SMEs Own Savings Sparkassen Bank Mortgage Wohnbau Subsidiaries Sonstige Beteiligungen ROE: 15.9% 4.2% 9.8% 14.3% 58.6% 19

20 Segmental reporting Austria CEE Int. business Corp. Center Total in EUR million Net interest income 1, , , , , ,794.2 Risk provisions Net commission income , ,256.8 General admin. expense -1, , , , ,670.0 Consolidated net profit Return on equity 18.3% 15.1% 36.0% 39.8% 23.5% 26.0% -6.7% -58.1% 13.7% 19.5% 20

21 Segmental reporting - Austria Joint liability scheme Retail & residential Major customers Trading & IB Austria in EUR million Net interest income Risk provisions Net commission income General administrative expense Consolidated net profit Return on equity 6.0% 3.6% 14.1% 12.6% 16.4% 12.3% 51.2% 36.5% 18.3% 15.1% 21

22 Segmental reporting - Central and Eastern Europe Czech Republic Rumania Slovakia Hungary Croatia Serbia in EUR million Net interest income Risk provisions Net commission income General administrative expense Consolidated net profit Return on equity 40.7% 40.0% 34.6% 0.0% 44.8% 50.3% 31.0% 40.4% 24.1% 28.5% nm nm 22

23 Share price development: Erste Bank DJ Euro Stoxx Bank and ATX (indexed) Share price developm ent: Erste Bank, DJ Euro Stoxx Bank Index and ATX (indexed) 130 Erste Bank share DJ Euro Stoxx Banks Index 100 Austrian Traded Index (ATX) Jan 06 Feb 06 Mar 06 Apr 06 May 06 Jun 06 Jul 06 Aug 06 Sep 06 Oct 06 Nov 06 Dec 06 23

24 Market capitalisation of Erste Bank Market capitalisation rises in to EUR 18.3 billion in EUR billions

25 Erste Bank Group outlook and objectives Consolidated net profit (1) On average exceeding 20% p.a. for Cost/income ratio 2009: below 55 % Return on equity (2) 2009: 18-20% 1) Profit after taxes and minority interests 2) Based on a core capital ratio of at least 7% 25

26 Shareholder structure By investor groups By regions Austria Insurance Capital Association Research and 4.9% Mgmt. 5.0% DIE ERSTE österreichische Spar- Casse Privatstiftung 30.6% Continental Europe 14.4% Other 2.5% UK & Ireland 14.0% Institutionals 41.8% Private 7.8% Em ployees 3.0% Sparkassen 6.9% North America 16.0% Free float: 64.5% Total number of shares: 315,296,185 26

27 8 countries 15.9 million customers one banking group Croatia Hungary Serbia Ukraine Austria Czech Republic Slovakia Rumania 27