Erste Group CMD11 - Romania: Making progress

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Macroeconomic snapshot − BCR business performance review − Credit risk management − History of asset quality deterioration − Loan origination history − Restoring BCR’s asset quality− Business roadmap − Retail − Local corporate− Special topic − Outlook

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Erste Group CMD11 - Romania: Making progress

  1. 1. Erste Group –8th Capital Markets Day9 December 2011, ViennaRomania: Making progressDominic Bruynseels, CEO, Banca Comercială RomânăFrank-Michael Beitz, CRO, Banca Comercială Română
  2. 2. 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 CORRECTNESS OF THIS INFORMATION OR OPINIONS CONTAINED HEREIN.− CERTAIN STATEMENTS CONTAINED IN THIS DOCUMENT MAY BE STATEMENTS OF FUTURE EXPECTATIONS AND OTHER FORWARD-LOOKING STATEMENTS THAT ARE BASED ON MANAGEMENT’S CURRENT VIEWS AND ASSUMPTIONS AND INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR EVENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH STATEMENTS.− NONE OF ERSTE GROUP OR ANY OF ITS AFFILIATES, ADVISORS OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER (IN NEGLIGENCE OR OTHERWISE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS DOCUMENT OR ITS CONTENT OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT.− THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO PURCHASE OR SUBSCRIBE FOR ANY SHARES AND NEITHER IT NOR ANY PART OF IT SHALL FORM THE BASIS OF OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT WHATSOEVER.9 December 2011 8th CMDVienna 2 Romania: Making progress
  3. 3. Presentation topics− Macroeconomic snapshot− BCR business performance review− Credit risk management − History of asset quality deterioration − Loan origination history − Restoring BCR’s asset quality− Business roadmap − Retail − Local corporate− Special topic− Outlook− Appendix9 December 2011 8th CMDVienna 3 Romania: Making progress
  4. 4. Romania –Potential still promising – from a more stable basis − Romanian economy slowly returning to steady growth rate − Highly correlated with eurozone developments - exports and investments are main transmission channels − Likely to rise above its long-term potential (3.5%) as early as 2015 − Public reform and policy stability remain prerequisite for boosting investors confidence − In the medium term, capital investments and private consumption should reinstate their role as main growth engines Romania - GDP/capita vs % of eurozone GDP/capita (%) 14 35 12 30in EUR thousand 10 25 8 20 6.1 6.5 6.0 6.1 5.8 5.9 6 5.2 5.5 5.6 5.7 15 4.5 4.1 3.7 4 3.2 10 2.8 2.6 2.1 2.2 2.3 2.4 1.8 1.9 2.0 2 1.2 5 0 0 1995 2000 H1 01 2001 H1 02 2002 H1 03 2003 H1 04 2004 H1 05 2005 H1 06 2006 H1 07 2007 H1 08 2008 H1 09 2009 H1 10 2010 H1 11 2011 2012f 2013f 2014f 2015f 2016f 2017f 2018f 2019f 2020f GDP/capita % of eurozone (rhs) 9 December 2011 8th CMD Vienna 4 Romania: Making progress
  5. 5. Macroeconomic environment –Agriculture and construction driving GDP growth in Q3 11− Excellent performance of agriculture (+22% yoy) GDP formation - broad recovery in incomes pushed Q3 GDP up by 4.4% yoy, the fastest rate -6 -4 -2 0 2 4 6 8 in the last 3 years 2011e − Romania is among world’s top 5 corn producers − Domestic demand consolidated, private consumption 2010 and investments positively contributed to GDP formation 2009 2008− Construction returned to positive in Q3 (+7% yoy) 2007 − Main support from commercial and infrastructure -6 -4 -2 0 2 4 6 8 − Residential segment slightly positive due to strong base effect and continuation of Prima Casa Program Industry Agriculture Construction Services Indirect taxes− Industry kept up a good pace (+6% yoy), external GDP formation - positive evolution in expenditure demand still a driving force in Q3 -16 -12 -8 -4 0 4 8 12 16 − Exports at all-time high in Sep (EUR 4.2bn) 2011e − Domestic demand on rebound helped industry in Q3 2010− Annual inflation down to 3.5% all-time low in Sep 2009 − Effects of the agricultural bumper crop fading away 2008 − CPI within central bank’s target range (3%±1pp) 2007 − Monetary policy eased, key rate cut by 25bps to 6% -16 -12 -8 -4 0 4 8 12 16 Household consumption Government Gross capital formation Net exports9 December 2011 8th CMDVienna 5 Romania: Making progress
  6. 6. Macroeconomic environment –The IMF’s model pupil− Public finances in a much better shape Public deficit and debt* * − Romania tackled the structural problems in public 10 United States Ireland Fiscal deficit to GDP (2012e) finance at an early stage 9 UK − Government committed to bring fiscal deficit down to 8 3% of GDP in 2012 and keep public debt at ~34% 7 6 Croatia France − High level of intl. reserves (EUR 36bn, covering 9 Slovakia Belgium 5 Portugal months of imports) Poland Austria 4 Romania − Precautionary deal with the IMF (EUR 5bn) 3 Czech Rep Hungary Italy − Local banks able to provide RON liquidity 2 1 Germany 0− Rating actions 2011 25 50 75 100 125 150 − Fitch: upgraded to investment grade BBB- with stable Public debt to GDP (2012e) outlook (July) * Bubble size indicates public debt per capita − S&P: rating affirmed at BB+ (LT FC); stable outlook Private capital inflows vs current account balance* − Moody’s: country ceilings affirmed at A1 (LT FC debt) 20% and Baa3 (LT FC bank deposits), stable outlook (July) 16.5% 15.2% 10.2% 10% 6.7% 5.5% 4.4% as % of GDP 10.8%− CAD significantly down to 3.5% of GDP in Q3 2.0% 0% − Positive growth differential export-imports contributed 3.0% 1.1% 1.5% 0.8% 2.8% to shrinking foreign trade deficit (4% of GDP) -10% -5.2% -5.1% -4.8% -3.6% -3.5% − Net current transfers up 9% y/y in 9M on better EU -9.7% -13.6%-13.6% funds absorption -20% Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 CA balance External assistance (IMF&EU) Net private capital inflows * Net private capital inflows (FDIs, current transfers & remittances)9 December 2011 8th CMDVienna 6 Romania: Making progress
  7. 7. Presentation topics− Macroeconomic snapshot− BCR business performance review− Credit risk management − History of asset quality deterioration − Loan origination history − Restoring BCR’s asset quality− Business roadmap − Retail − Local corporate− Special topic− Outlook− Appendix9 December 2011 8th CMDVienna 7 Romania: Making progress
  8. 8. BCR: business performance review –Operating income performance overview 350 Operating income & GDP growth per quarter 15% 306.2 * 300 Pre-crisis growth 8 Consolidation 274.9 51 10% 261.3 258.3 7 9 254.1 248.4 240.7 29 250 239.5 3 240.3 233.4 5 13 235.1 8 0 35 219.7 44 44 221.8 217.8 215 211.9 3 64 64 36 29 1 6 38 39 206.3 in EUR million 197.5 4 35 18 20 5% 200 65 13 26 75 31 32 159 72 6 58 150 0% 44 246 207 213 202 207 100 190 186 195 196 200 186 167 177 169 163 134 141 -5% 127 50 109 0 -8 -1 -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 Net interest income Net fee and commission income Net trading result Real GDP growth (%,(%, y/y) Real GDP growth y/y) * NII impacted in Q4 09 by changes in EIR method for the loan portfolio prior to 2006, leading to an increase of interest-like income and first time amortisation of transaction fees related to customer loans, recognised as deferred instead of cash-based as previously9 December 2011 8th CMDVienna 8 Romania: Making progress
  9. 9. BCR: business performance review –Successful cost control but pressure on NIM− NIM pressured by overall decreasing YTD net interest margin vs. T-bills avg. yield * interest rates 8% 11.3% ▲ 7.24% 12% 6.80% 6.73% − Lower asset margins on retail due to Prima 5.46% 5.41% 10% 6% Casa, weak RON consumer business and 8% loan portfolio repricing 4% 6% 4% − Refinancing gained speed, following the 2% 2% alignment to EUR consumer protection stds. 0% 0% − Pressures on liabilities margins due to 2007 2008 2009 2010 1-9 11 increased competition for liquidity YTD NIM T-bills (avg. yield)− Additional impact on margins from * Source: BNR, avg. yield on T-bills primary market (maturities <1Y) placements in lower yielding Operating expenses and CIR government securities than historically 600 100% 516.9− Continued strong focus on cost 500 457.6 80% effectiveness 383.3 in EUR million 400 375.2 60% 65.6% − Actively managed cost base through 300 282.7 40% efficiency programs and project prioritisation 200 45.2% 43.2% 37.3% 39.2% − Continued focus on alternative channels and 100 20% cards, IT development 0 0% − Cost savings on network optimisation 2007 2008 2009 2010 1-9 119 December 2011 8th CMDVienna 9 Romania: Making progress
  10. 10. Presentation topics− Macroeconomic snapshot− BCR business performance review− Credit risk management − History of asset quality deterioration − Loan origination history − Restoring BCR’s asset quality− Business roadmap − Retail − Local corporate− Special topic− Outlook− Appendix9 December 2011 8th CMDVienna 10 Romania: Making progress
  11. 11. BCR: Credit risk management –History of asset quality deterioration (local view) 25% 56.5% Split Risk/ Financial 60% x 20.8% 50.3% 20% Financial Crisis 16.8% x 40% 15% New Top Mgm t. % NPL Closing 10/2006 x 12.3% x Confirm atory DD 10% & Transform ation 21.0% x 20% Due 4.6% 5% diligence 2.2% 7.3% x 2.6% 2.1% 1.3% 0% 0% 2005 2006 2007 2008 2009 2010 1-9 11 NPL ratio Net loan growth Phase 1 - Transition Phase 2 - Pre-crisis Phase 3 - Crisis & recession9 December 2011 8th CMDVienna 11 Romania: Making progress
  12. 12. BCR: Credit risk management –History of actions taken (local view)% NPL Phase 1 - Transition Phase 2 - Pre-crisis Phase 3 - Crisis & recession9 December 2011 8th CMDVienna 12 Romania: Making progress
  13. 13. BCR: Credit risk management –Loan origination history Origination of loans (Segment)− Phase I ~ Transition 12,000 13% − Almost 55% of BCR’s NPLs (and 42% of 10,000 14% 1,413 11,044 loans) were generated during the transition 10% 1,569 EUR million 8,000 period and prior to Erste’s takeover 21% 1,098 6,000 2,346 20%− Phase II ~ Pre-crisis 4,000 2,252 10% − 2008 pre-crisis year contributed with 29% to 2,000 12% 1,039 NPLs and with 21% to loans origination 1,327 1-9 11 0 Phase 1 1 Phase 2 Phase 3− Phase III ~ Crisis & recession 2005≤ 2006 2007 2008 2009 2010 1‐9 11 − Only 16% of NPLs (and 37% of loans) were Origination of NPLs (Segment)  generated after 2008, whereby retail 3% 2,500 6% contributed only 4pp and corporate 12pp 70 2,432 7% 146 29% 160 2,000− Phase IV ~ Recovery 712 EUR million 1,500 28% − Risk under control 1,000 690 13% 500 14% 306 348 1-9 11 0 Phase 1 1 Phase 2 Phase 3 2005≤ 2006 2007 2008 2009 2010 1‐9 119 December 2011 8th CMDVienna 13 Romania: Making progress
  14. 14. BCR: Credit risk management –Restoring BCR’s asset quality− Enforce prudent cash-flow oriented lending policies − Debt/EBITDA ratio, debt service coverage ratio, interest coverage ratio − Industry guidance looks at various industries considering the expected economic viability of the industry and not the collateralisation degree− Centralise loan and collateral documentation for SMEs until 2012 YE − The measure applies to 48 corporate centers, 3,763 clients and RON 9bn loan volumes − Operational risk (human processing errors, legal documents missing, contract obligation breaches) is estimated to decrease by RON 13.6m in 2012 and by RON 20.5m in 2013 and 2014− Improve asset protection − Focus on collateral management − Increase NPL coverage− De-risk the loan book9 December 2011 8th CMDVienna 14 Romania: Making progress
  15. 15. BCR: Credit risk management –Restoring BCR’s asset quality in retail business Comparison of PI overdue loans (DPD>1 day)25% 21.2% 21.0% 21.4% 21.3% 24.6% 24.8%20% 22.2% 23.0% 20.4% 20.1% 20.5% 20.3% 18.8% 19.1%15% 17.6% 16.2%10% 7.8% 8.1% 7.5% 6.1% 7.1% 5.3% 5.6% 6.0% 5% Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Total BCR by BNR  Banking system by BNR BCR new (granted in 09&10) Total overdue portfolio contaminated:− De-risk the loan book – reduce DPDs in retail business - contaminated at client level - DPD > 1 − Collection software upgraded (integrated auto dialer), 90+ DPD (<180 - exposure > RON 20,000 DPD) decreased from 3.5% (Dec 09) to 2.5% as of Sep 11 − EUR 390m unsecured consumer loans sold during 2010 and 20119 December 2011 8th CMDVienna 15 Romania: Making progress
  16. 16. BCR: Credit risk management –Restoring BCR’s asset quality in corporate businessNo. of clients 130 46 1,194(1,370) - -Loans exposure(EUR 1,899 m) 775 464 660 - -o/w NPL 455 197 613 - -(EUR 1,265 m)FTE-2011 YE(130) 16 16 41 36 21− De-risk the loan book – reduce NPLs in corporate business − Regular portfolio screening and enhanced watchlist management − Change workout strategy from “Restructure & Hold” to “Restructure & Sell” − Structure of newly set up Corporate Remedial & Recovery Division9 December 2011 8th CMDVienna 16 Romania: Making progress
  17. 17. Presentation topics− Macroeconomic snapshot− BCR business performance review− Credit risk management − History of asset quality deterioration − Loan origination history − Restoring BCR’s asset quality− Business roadmap − Retail − Local corporate− Special topic− Outlook− Appendix9 December 2011 8th CMDVienna 17 Romania: Making progress
  18. 18. BCR: business roadmap –Segment Romania− Operating income set to improve on fee income − Strategy to activate customers, cross-sell & increase transactional banking volume − Main NCI driver in retail business will be current accounts− Very strict cost discipline to improve competitiveness− Still elevated risk provisions− Prioritising of business opportunities and strict control of RWA development − Focus on Prima Casa, EU-funds related projects and infrastructure9 December 2011 8th CMDVienna 18 Romania: Making progress
  19. 19. BCR: business roadmap –Measures to improve retail results− Strong focus on customer retention to increase value of existing customer base (client activation) − Redesign products/ bundles to match better customer expectations, priority on daily banking − Simplify processes and documentation for better quality of services and customer satisfaction − Align retail performance evaluation and business profitability− Deposits − Sight deposits: focus on increasing active main relationships − Term deposits: focus on stable deposits with long tenor and customers with regular savings − Micro & corporate clients: acquisition of payroll clients through dedicated employee benefit packages− Secured lending − Increased focus on local currency lending − Continued support for Prima Casa Program − Pricing aligned to profitability of the customer relationship− Unsecured lending − Pricing based on profitability across the product range− New lending rules will not significantly impact BCR’s retail business due to current conservative approach on FX lending9 December 2011 8th CMDVienna 19 Romania: Making progress
  20. 20. BCR: business roadmap –Measures to improve local corporate results− Increase transaction banking income, focus on cross-selling − Supply chain finance – implement a standard value proposition and launch vendor financing solution − Improve internet banking capabilities & service availability, develop electronic platforms − Increase cross-selling with sales campaigns on cash management, trade and treasury products, or client categories RWA optimization− Strict control of RWA development: new business prioritising, repricing, improve collateral coverage, and adjust offering − Focus on core customers to develop EVA positive business relationships − Continue focusing on co-financing EU infrastructure loans and increase usage of guarantee schemes− Lending process improvement − Develop specific product structures, processes and dedicated competence centers for targeted industries: agribusiness, infrastructure, renewable energy, healthcare − Improvement of the loan approval process for prolongations and small amount increases − Centralisation of loan and collateral documentation and monitoring − Centralisation of the process flow for issuing cash collateral LGs− Sales process optimisation − Improve quality of customer service on each process through staff training and certification, internal monitoring of service quality, continuously monitoring of client experience on specific products and processes9 December 2011 8th CMDVienna 20 Romania: Making progress
  21. 21. Infrastructure investments –Projects totalling EUR 7.8bn signed between 2007-2011 Projects signed 2007-2009 Projects signed 2010-2011Total project value: EUR 1,929m Total project value: EUR 5,876m58% from EU funds 68% from EU fundsNumber of projects: 18 Number of projects: 71Avg. implementation status: 32% Avg. implementation status: 5% Top 5 projects by value (EURmn) Top 5 projects by value (EURmn)Cernavoda – Constanta highway Orastie – Sibiu highway (Corridor IV) 746 432(part of Pan-European Corridor IV to Black Sea) Nadlac – Arad highway (Corridor IV) 308Constanta city road belt 226 Rehabilitation and modernisation of water and 163Water systems expansion and rehabilitation sewage systems (Prahova county) 197(Cluj and Salaj counties) Expansion and rehabilitation of water and 150Water system rehabilitation (Brasov city) 189 waste water networks (Dolj county)Expansion and rehabilitation of water network Expansion and modernisation of water and 122 140(Teleorman county) waste water networks (Arad county)Total 1,166 Total 1,5069 December 2011 8th CMDVienna 21 Romania: Making progress
  22. 22. Presentation topics− Macroeconomic snapshot− BCR business performance review− Credit risk management − History of asset quality deterioration − Loan origination history − Restoring BCR’s asset quality− Business roadmap − Retail − Local corporate− Special topic− Outlook− Appendix9 December 2011 8th CMDVienna 22 Romania: Making progress
  23. 23. BCR: Funding and liquidity –Robust core deposit base− Dominant market share in deposits (~21%) Customer deposits, main funding source − Stable retail deposits (both RON and EUR) 37.8 39.1 40 35.6 100% − Strong performance in RON corporate deposits 33.0 30.1 in RON billion 80% (both sight and term) 30 60% 20 52%− Overall L/D ratio of 135%, expected to 48% 48% 51% 51% 40% 10 decline further on improvement in EUR L/D 20% ratio 0 0% 2007 2008 2009 2010 Sep-11 − RON L/D ratio of 76% Amounts owed to customers in % of balance sheet − EUR L/D ratio of 253% Balance sheet as of Sep 2011 (in RON million)− EMTN program - flexible funding tool (EUR Other liabilities + Total Other assets 3,382 10,667 250m issued so far) 13,244 2,029 equity 1,157 Financial assets 1,249 Subordinated capital− Strong liquidity buffer - eligible collateral 9,276 21,553 approx. RON 13.2bn Trading assets Debt securities in issue Loans and advances Amounts owed to credit− Medium to long-term funding sources well- to credit institutions 47,305 39,050 38,385 39,050 institutions diversified by lenders & geographic areas Loans and advances Amounts owed to to customers + Risk customers (partnerships with IFIs) provisions9 December 2011 8th CMDVienna 23 Romania: Making progress
  24. 24. Presentation topics− Macroeconomic snapshot− BCR business performance review− Credit risk management − History of asset quality deterioration − Loan origination history − Restoring BCR’s asset quality− Business roadmap − Retail − Local corporate− Special topic− Outlook− Appendix9 December 2011 8th CMDVienna 24 Romania: Making progress
  25. 25. Conclusion –Outlook− Long-term story Romania remains intact – from a more stable basis− Optimism about operating income − Infrastructure projects to be key revenue driver − BCR ideally positioned to benefit − Strong municipalities and contractor contacts − Profitability in retail will track the recovery of consumer confidence and wage rises− Risk costs will stay elevated for some time − Efforts to improve risk/reward of underlying business will pay off mid-term− Firm cost management was and will be a pillar of strength− More sustainable bank and model from where to grow with the market and benefit from competitor weakness9 December 2011 8th CMDVienna 25 Romania: Making progress
  26. 26. Presentation topics− Macroeconomic snapshot− BCR business performance review− Credit risk management − History of asset quality deterioration − Loan origination history − Restoring BCR’s asset quality− Business roadmap − Retail − Local corporate− Special topic− Outlook− Appendix9 December 2011 8th CMDVienna 26 Romania: Making progress
  27. 27. Appendix: Romania –Significant competitive advantage in terms of labour cost Productivity adjusted hourly labour costs 40 35.2 35 32.4 30 28.3 25 21.2 21.4 in EUR 20 16.1 14.2 15.0 15 11.5 10 5 0 Romania Poland Bulgaria Hungary Czech Slovakia Slovenia EU27 Austria Republic Source: Eurostat, Erste Research9 December 2011 8th CMDVienna 27 Romania: Making progress
  28. 28. Appendix: business roadmap –Retail: new lending rules adopted by the Central Bank− New prudential rules adopted at end-October, aiming to limit the risks associated with consumer lending, mainly in FX − Max. 5 year tenor for new unsecured and secured consumer loans, irrespective of currency − No max. tenor previously imposed, max. 10 years for unsecured and 25-30 years for secured according to market practice − Debt to income limit and stress parameters adopted − Min.133% coverage by collateral for FX home equity loans − Corresponding to max. 75% LTV, no min. level of coverage by collateral previously stipulated − Lower LTV for FX mortgage loans − Loans under Prima Casa and refinancing of loans contracted before the new regulation entered into force exempted from current tenor and down payment limitations− BCR’s own rules well ahead of BNR’s new guidelines − Lower impact on BCR’s retail business as compared to the market, due to conservative approach on FX lending − Higher collateralization, lower debt to income and LTV ratios, max. tenor for unsecured consumer limited to 5 years since early 2010, FX unsecured loans cancelled from BCR offer starting H2 11 − Estimated impact on new sales in 2012: − -10% in standard mortgage (~EUR 9m) − -20% in unsecured consumer (~EUR 92m) − -65% in secured consumer (~EUR 66m) − Estimated impact on NII in 2012: EUR -11.5m9 December 2011 8th CMDVienna 28 Romania: Making progress
  29. 29. Appendix: Special topic –Update on Erste shareholding in BCR− 4 SIFs have signed transaction documents − Issue of 16,102,263 EGB shares (thereof until 8.12.2011: 8,275,312; thereof 4,025,566 issuance pending) − Cash contribution of RON 494.4m (thereof until 8.12.2011: RON 244.5) − Erste Group will increase stake in BCR to 93.54%− Up to date 12.4% of BCR shares have been acquired SIFs shareholding before transaction Status quo of transaction # of Shares # of Shares Num ber of BCR Shares total 10,856,364,880 100.00% 10,856,364,880 100.00% SIF Oltenia 652,033,303 6.01% 652,033,303 6.01% SIF Muntenia 651,381,927 6.00% 241,744,625 2.23% SIF Banat Crisana 651,381,927 6.00% 366,373,358 3.37% SIF Moldova 651,381,927 6.00% 515,104,582 4.74% SIF Transilvania 651,381,927 6.00% 136,277,240 1.26% Erste Group 7,547,067,344 69.52% 8,895,423,653 81.94% Others 51,736,525 0.48% 49,408,119 0.46%− Movement in Erste share price has no influence on deal structure − Shares are exchanged at fixed exchange ratio of 127.9583 BCR shares for one EGB share9 December 2011 8th CMDVienna 29 Romania: Making progress

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