"INOGATE Technical Secretariat & Integrated Programme in support of the Baku Initiative and the Eastern Partnership energy objectives" Project B U I L D I N G P A R T N E R S H I P S F O R E N E R G Y S E C U R I T Y www.inogate.org
INOGATE Workshop Energy Efficiency & Renewable Energy Sources "Introducing Erste Bank, EE/RES financing, bank's policy, portfolio, partners" 25 February 01 March 2014 Yerevan, ARMENIA Presenter: Werner Weihs-Raabl - Head of Group Infrastructure Finance, Erste Group
1. ERSTE Group An Introduction 2. Case Study 3
ERSTE Group - History Erste Group went public in 1997 with a strategy to expand its retail business model into CEE. Acquisition of more than 10 banks between 1997 and 2008 Erste Group now runs market leading retail and corporate banking operations in the Eastern part of the EU, which remains underpenetrated compared to Western European markets. 2003 2004 2005 2006 2007 2008 New holding structure improving Group governance 2000 1997 2001 1997 1 core market 5,000 employees 230 branches 0.6mn customers EUR 2bn market cap <5% CEE contribution 2013 7 core markets ~46,000 employees ~2,900 branches ~16,4mn EUR 48bn customers assets under management 4
16.4 million clients in the Eastern part of the EU Erste Group clients: ~ 16.4 mn (of which 99% are within EU) Market leadership in AUT, RO, SK and CZ No. 1 asset manager in CEE with EUR 48bn assets under management TOP position in debt capital markets in Austria and CEE with more than 11% market share TOP Mandated Lead Arranger of syndicated loans in CEE No. 3 in CEE commercial real estate business All data as of November 2013 5
One of leading financial services groups in the Eastern part of the EU Retail banking As a retail and corporate bank, Erste Group is market leader in the Eastern part of the EU. It is one of the largest financial services providers in Central and Eastern Europe (CEE) in terms of clients and total assets. Around 46,000 employees serve 16,4 million customers in 2,900 branches in 7 countries (Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia, Serbia). Focus on local currency mortgage and consumer loans funded by local deposits FX loans only where funded by local FX deposits (RO & HR) Savings products, asset management and pension products Potential future expansion into Poland Eastern part of EU Corporate banking Customer banking in Central and Eastern Europe Large, local corporate and SME banking Advisory services, with focus on providing access to capital markets and corporate finance Real estate business that goes beyond financing Potential future expansion into Poland ERSTE Group Focus on CEE, limited exposure to other Europe Capital markets Public sector Interbank business Focus on customer business, incl. customer-based trading activities In addition to core markets, presences in Poland, Turkey, Germany and London with institutional client focus and selected product mix Building debt and equity capital markets in CEE Financing sovereigns and municipalities with focus on infrastructure development in core markets Any sovereign holdings are only held for marketmaking, liquidity or balance sheet management reasons Focus on banks that operate in the core markets Any bank exposure is only held for liquidity or balance sheet management reasons or to support client business 6
ERSTE Group Core Market Overview on Support Instruments - Green Certificates vs. Feed in Tariffs The majority of EU Member States applies a Feed in Tariff system. 6 countries use a quota obligation based on tradable green certificates as main instrument. Support Instruments in Europe Green Certificate Mechanism SE FI EE Value of electricity generation trading / consumption IE UK NL BE DK DE PL LT LA Value of green certificate PT ES FR LU IT CZ AT SK HU RO BG GR conventional power plant Feed-in tariff system Quota obligation with Tradable Green Certificates (TGC) Tax incentives/investment grants Certificates Renewable energy source Value of conventional electricity trading / consumption 7