> Balance Sheet Analysis > Reinhard Ortner, CFO Erste Bank > 17 September 2003
Assets EUR m % Change YE 1999/HY 2003 Loans and advances to credit institutions 10,295 19,472 18,912 15,492 18,146 76.26 Loans and advances to customers 26,405 31,238 39,210 64,435 65,358 147.52 Risk provisions for loans and advances (965) (1,544) (1,875) (2,983) (3,004) 211.30 Trading assets, AFS 5,795 7,142 6,363 10,223 12,578 117.05 Financial investments 7,396 9,542 14,730 22,572 25,087 239.20 Sundry assets 3,517 5,346 8,693 11,483 10,988 212.43 Total assets 52,443 71,196 86,033 121,222 129,153 146.27 incl. incl. inckl. cross guarantee system (CGS) + s- Versicherung) 2
Liabilities and shareholders equity EUR m % Change YE 1999/HY 2003 Amounts owed to credit institutions 20,571 25,639 28,642 26,425 28,483 38.5 Amounts owed to customers 19,533 28,841 37,175 61,308 63,934 227.3 Debts evidenced by certificates and subordinated capital 8,328 10,736 12,707 17,577 18,909 127.1 Minority interests 428 833 1,259 2,723 3,031 608.2 Shareholders' equity 1,436 1,856 1,904 2,481 2,543 77.1 Sundry liabilities 2,147 3,291 4,346 10,708 12,253 470.7 Total liabilities and shareholders' equity 52,443 71,196 86,033 121,222 129,153 146.3 incl. incl. inckl. cross guarantee system (CGS) + s- Versicherung) 3
Loans and advances to customers Total (EUR m) 26,405 31,238 39,210 64,435 65,358 100% 90% 80% 70% 60% 50% 17.8% 1.3% 9.3% 14.3% 11.6% 13.7% 18.6% 7.8% 11.1% 7.0% 6.6% 14.4% 14.8% 44.9% 44.3% 40% 30% 71.6% 64.2% 58.7% 20% 10% 0% 33.7% 34.2% Erste Bank Savings banks Total CE others 4
Development of loan portfolio in CE Total CE (EUR m) 336 4,273 7,214 9,267 9,700 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 10.3% 9.6% 13.1% 13.5% 9.7% 12.3% 12.2% 10.0% 10.4% 100.0% 89.7% 80.7% 64.6% 63.9% Ceska Sporitelna Slovenska Sporitelna Erste Bank Hungary Erste Bank Croatia 5
Development of financial investments, AFS, trading assets Total (EUR m) 13,191 16,684 21,093 32,795 37,665 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000-4,298 3,487 8,280 6,736 3,451 1,397 3,210 2,912 3,932 22,572 25,087 4,399 14,730 7,395 9,542 Financial Investments AFS Trading Assets 6
Proportional development of financial invest., AFS, trading assets Total (EUR m) 13,191 16,684 21,093 32,795 37,665 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 10.6% 19.2% 16.4% 10.6% 11.4% 33.3% 13.8% 20.5% 22.0% 23.6% 56.1% 57.2% 69.8% 68.8% 66.6% Financial Investments AFS Trading Assets 7
Amounts owed to customers Total (EUR m) 19,533 28,841 37,175 61,308 63,934 70,000 60,000 50,000 40,000 30,000 20,000 10,000-6,557 24,428 27,295 16,010 11,496 36,880 36,639 12,976 17,345 21,165 Savings deposits Other 8
Customer deposits Total (EUR m) 19,533 28,841 37,175 61,308 63,934 100% 80% 60% 24.7% 11.7% 1.6% 15.4% 12.9% 7.5% 9.7% 36.7% 45.5% 7.1% 6.9% 42.1% 40.5% 40% 20% 0% 31.5% 31.6% 62.1% 40.4% 31.9% 19.3% 21.0% Erste Bank Total CE Savings Banks Other 9
Deposit to loan ratio development 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - EUR m 97 100 77 37,335 37,175 29,694 25,440 28,841 19,533 61,452 62,354 61,308 100 63,934 103 120 100 80 60 40 20 0 % Loans and advances to customers Ratio in % Amounts owed to customers 10
Proportional development of funding structure Total (EUR m) 48,432 65,216 78,524 105,310 111,326 100% 80% 17.2 16.5 16.2 16.7 17.0 60% 40% 20% 0% 40.3 44.2 47.3 58.2 57.4 42.5 39.3 36.5 25.1 25.6 Debts evidenced by certificates and subordinated capital Amounts owed to customers Amounts owed to credit institutions 11
> Qualifying capital (Austrian Banking Act) Core capital and Tier 1 ratio EUR m 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Risk-weighted basis under Section 22 Austrian Banking Act 3,800 3,921 6.7% 6.3% 2,125 2,337 6.6% 1,753 6.3% 6.2% 27.750 31.879 37.803 60.257 59.654 Core capital (Tier 1) Tier 1 ratio in % 6.9% 6.7% 6.5% 6.3% 6.1% 5.9% 5.7% 5.5% 12
> Qualifying capital (Austrian Banking Act) Risk weighted basis (EUR m) Erste Bank AG 20.246 19.736 21.208 20.537 20.323 CE-companies 298 4.897 6.991 9.067 9.347 Savings Banks 2.111 2.108 3.977 25.521 25.188 Others 5.094 5.138 5.627 5.132 4.796 Total 27.750 31.879 37.803 60.257 59.654 13
EB Group Breakdown of Tier 1 Capital (including Cross guarantee scheme) EUR m YE 1999 YE 2000 YE 2001 YE 2002 Q1 2003 HY 2003 Paid in capital 322 366 366 435 435 436 Reserves 1,476 1,786 1,820 2.211 2,211 2,214 Minorities 191 411 601 2,233 2,236 2,240 Hybrid tier 1 100 225 456 466 626 609 Goodwill -187-468 -612-1,071-1,084-1,120 Software -149-195 -294-474 -457-458 Total tier 1 1,753 2,125 2,337 3,800 3,967 3,921 share of hybrid tier 1 - total tier 1 5.7 % 10.6 % 19.5 % 12.3 % 15.8 % 15.5 % 14
> Shareholder s equity IFRS - Tier 1 capital Reconciliation of shareholders equity with Tier 1 capital As of 31 December 2002, in EUR m 6000 5000 4000 3000 5,204 (100) 148 93 5,345 (1,071) (474) 3,800 2000 1000 0 Total Shareholders Equity and Minority interests (IFRS) Dividends to be paid in 2003 Reversal of IFRS-value adjustments Other changes (eg consolidation differences) Gross Equity (ABA) Goodwill (ABA) Software (ABA) Tier 1 Capital 15
> Current projects IASB 2003 2003 2003 2004 2004 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Later Business combinations, phase 1 IFRS Amendments IAS 39 IFRS (I) IFRS (II) Business combinations, application of the purchase method phase 2 ED IFRS 16
> Proposed Amendments to IAS 39 (in discussion) Measurement» All financial assets and financial liabilities permitted to be measured at fair value by designating them at initial recognition» held for trading» Option to recognise gains and losses on available-for-sale financial assets in profit or loss is eliminated» no longer necessary in light of proposed amendment above» Impairment losses recognised in instruments classified as available for sale cannot be reversed» Guidance provided on how to evaluate impairment inherent in a group of loans, receivables or held-to-maturity investments 17