Erste Group investor presentation –
1-9 2013 results
30 October 2013

Participation capital repaid, asset quality improves...
Disclaimer –
Cautionary note regarding forward-looking statements
− THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEE...
Executive summary –
Participation capital repaid, asset quality improves
• Net profit of EUR 430.3m supported by significa...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
Operating environment: macro trends –
Signs of economic recovery visible in CEE
− Growth mainly driven by exports, however...
Operating environment: macro trends –
What has recently happened in CEE?
− AT: economy continuously outgrows the euro zone...
Key financial indicators –
EPS and ROE reflecting market environment
YTD cost income ratio
50.9%

1-9 09

52.4%

51.9%

YT...
Income statement (IFRS) 1-9 13 vs 1-9 12 –
Net profit driven by risk costs, NII and banking tax
in EUR million
Net interes...
Income statement (IFRS) drill-down –
Other operating result in detail
Other operating result (1-9 13): - EUR 578.5m

Decon...
Income statement (IFRS) Q3 13 vs Q2 13 –
Improved NII reflected in net profit
in EUR million
Net interest income
Risk prov...
Balance sheet (IFRS) –
Lower customer loans, lower RWAs
in EUR million
Cash and balances with central banks
Loans and adva...
Balance sheet (IFRS) –
Strong deposit base
Sep 13

Dec 12

Deposits by banks

22,946

21,822

Customer deposits

122,060

...
Segment highlights –
Improvement in RO, solid results in EBOe, CZ and SK
Top segment performers in 1-9 13:
EB Oesterreich
...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
BCR turnaround –
Restructuring well on track, NPL stock declines
Key priorities
Key priority #1:
Improve asset
quality

Th...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
Loan book review –
Slowing loan book decline
− Customer loans declined by 0.2% qoq, 1.8% ytd
reductions mainly in GCIB and...
Asset quality review –
First visible qoq NPL ratio reduction since 2008
− NPL ratio down qoq, but still up 0.4pp ytd

Erst...
Asset quality review –
AT, CZ & SK improve, while RO stabilises
− Retail & SME/Austria: asset quality stable

NPL ratios i...
Asset quality review –
Risk costs further decreased in retail & SME business
− Slovakia: further good quality loan growth
...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
Funding update –
Continued strong deposit performance
− Strong customer deposit base
− GCIB deposits increased by 18.6% yt...
Funding update –
Strong liquidity position, limited funding requirements
− Short-term funding needs very well covered

Evo...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
Capital position –
Capital increase & participation capital repayment in Q3
Capital position (Sep 2013)

CT1 (Basel 2.5) r...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
Conclusion –
Outlook
− Erste Group expects a slight improvement in economic performance for Central and
Eastern Europe unt...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
Segment review –
Improved profitability in the Retail & SME segment
Retail & SME

GCIB

1-9 13

1-9 12

Net interest incom...
Region – Austria
Net profit improves on lower risk costs
Savings banks
in EUR million
Net interest income
Risk provisions ...
Region – Central and Eastern Europe (1)
Romania shows most significant yoy improvement
Czech Republic
in EUR million

1-9 ...
Region – Central and Eastern Europe (2)
Declining risk costs drive CEE performance
Croatia
in EUR million

1-9 13

Net int...
Segment Retail & SME –
Net profit up on lower risk costs
− Decline in operating expenses almost offsets
decrease in operat...
Segment Retail & SME –
Loan book analysis
Segment Retail & SME Customer loans by currency

Segment Retail & SME Customer l...
Segment GCIB excl IB –
Net loss due to higher risk costs and lower NII
− Operating result declined on lower NII

in EUR mi...
International Business (GCIB) –
Net profit on improved other result
− Reduction of business impacts International
Business...
Segment GCIB (incl IB) –
Loan book analysis
Segment GCIB Customer loans by Basel II customer segment

Segment GCIB - Custo...
Segment Group Markets –
Net profit down on lower trading result
− Operating result and net profit declined substantially
o...
Segment Corporate Center –
1-9 12 results impacted by one-offs
− What is in the Corporate Center?

in EUR million

− Inclu...
Retail & SME: Austria/EB Oesterreich –
Improved net profit supported by lower risk costs
− Operating result improved year-...
Retail & SME: Austria/EB Oesterreich –
Loan book analysis
Subsegment EB Oesterreich Customer loans by currency

Subsegment...
Retail & SME: Austria/Savings banks –
Increased net profit on lower risk costs
− Operating result stable yoy despite weake...
Retail & SME: Austria/Savings banks –
Loan book analysis
Subsegment Savings Banks Customer loans by Basel II customer segm...
Retail & SME: Czech Republic –
Net profit down on lower operating income
− Operating result declined by 9.4% yoy, up qoq

...
Retail & SME: Czech Republic –
Loan book analysis
Subsegment Czech Republic Customer loans by currency

Subsegment Czech R...
Retail & SME: Romania –
Restructuring well under way, net profit in Q3 13
− Operating result improved yoy

in EUR million
...
Retail & SME: Romania –
Loan book analysis
Subsegment Romania Customer loans by Basel II customer segment
12

Subsegment R...
Retail & SME: Slovakia –
Solid operating performance continues
− Operating result slightly improved

in EUR million

− NII...
Retail & SME: Slovakia –
Loan book analysis
Subsegment Slovakia Customer loans by currency

Subsegment Slovakia Customer l...
Retail & SME: Hungary –
Operating performance reflects deleveraging
− Operating result down due to lower business volumes
...
Retail & SME: Hungary –
Loan book analysis
Subsegment Hungary Customer loans by currency

Subsegment Hungary Customer loan...
Retail & SME: Croatia –
Increase in risk costs impacts net profit
− Operating result decreased yoy but up qoq

in EUR mill...
Retail & SME: Croatia –
Loan book analysis
Subsegment Croatia Customer loans by Basel II customer segment

Subsegment Croa...
Retail & SME: Serbia –
Sound operating performance and net result
− Operating result improved on higher NII

in EUR millio...
Retail & SME: Serbia –
Loan book analysis
Subsegment Serbia Customer loans by currency

Subsegment Serbia Customer loans b...
Retail & SME: Ukraine –
Deconsolidation as of 29 April 2013
− Due to the deconsolidation following the sale of
EB Ukraine,...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
Asset quality analysis –
Key definitions
− Key asset quality indicators are based
on on-balance sheet customer loans

Risk...
Asset quality analysis –
Loan book overview
Customer loans by Basel II customer segments
150

133.5

131.9

130.3

7.5

12...
Asset quality analysis –
Loan book by segments
Management
attention

Low risk
in EUR million

Sep 13

Dec 12

Sep 13

Subs...
Asset quality analysis –
Loan book by region (country of origination)
Low risk
in EUR million
Core market
Austria
Croatia
...
Asset quality analysis –
Total exposure by region (country of origination)
Low risk

Management
attention

Substandard

No...
Asset quality analysis –
Financial assets
Financial assets by country of origination

Financial assets by currency

(30 Ju...
Balance sheet (IFRS) drill-down –
Trading assets as of 30 Sep 2013
− Increase of EUR 2.1 bn ytd mainly due to investments ...
Balance sheet (IFRS) drill-down –
Financial assets at fair value as of 30 Sep 2013
− Decline of EUR 141m ytd on reduction ...
Balance sheet (IFRS) drill-down –
Financial assets available for sale as of 30 Sep 2013
− Ytd decline of EUR 1.4 bn driven...
Balance sheet (IFRS) drill-down –
Financial assets held-to-maturity as of 30 Sep 2013
− Financial assets HTM declined by E...
Drill-down on selected asset classes –
Peripheral Europe exposure at manageable level
Total net exposure of Erste Group (i...
Off-balance sheet items –
Exclusively related to customer business
2011

in EUR million

2012

Sep 13

Total

6,920
6,170
...
Presentation topics
− Business performance
− BCR update
− Credit risk
− Funding
− Capital
− Outlook
− Appendix
− Segments
...
Key local entity data (IFRS, consolidated) –
Ceska sporitelna
Key figures and ratios

1-9 13

1-9 12

Cost/income ratio
Re...
Key local entity data (IFRS, consolidated) –
Banca Comerciala Romana (BCR)
Key figures and ratios

1-9 13

1-9 12

Cost/in...
Key local entity data (IFRS, consolidated) –
Slovenska sporitelna
Key figures and ratios

1-9 13

1-9 12

Cost/income rati...
Key local entity data (IFRS, consolidated) –
Erste Bank Hungary
Key figures and ratios

1-9 13

1-9 12

Cost/income ratio
...
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Erste Group – Q3 2013 results presentation 30 October 2013
Upcoming SlideShare
Loading in …5
×

Erste Group – Q3 2013 results presentation 30 October 2013

1,017 views

Published on

Q3 2013 results presentation
hosted by
Andreas Treichl, CEO, Erste Group
Gernot Mittendorfer, CFO, Erste Group
Andreas Gottschling, CRO, Erste Group

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,017
On SlideShare
0
From Embeds
0
Number of Embeds
28
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Erste Group – Q3 2013 results presentation 30 October 2013

  1. 1. Erste Group investor presentation – 1-9 2013 results 30 October 2013 Participation capital repaid, asset quality improves Andreas Treichl, CEO, Erste Group Gernot Mittendorfer, CFO, Erste Group Andreas Gottschling, CRO, Erste Group
  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. 1-9 2013 results presentation 2 30 October 2013
  3. 3. Executive summary – Participation capital repaid, asset quality improves • Net profit of EUR 430.3m supported by significant reduction in risk costs Income statement – 1-9 13 vs 1-9 12 • Decline in net profit due to significant one-off income in 1-9 12 (hybrid buyback) • Operating result impacted by subdued loan demand and low interest rate environment • Risk costs declined to 129bps (EUR 1,260.0m) of average customer loans • Improvements in retail & SME business, except Hungary, more than offset increased provisioning requirements in the large corporate and commercial real estate business • Improvement in net result mainly on stronger operating performance Income statement – Q3 13 vs Q2 13 • Slight increase in NII, operating expenses declined further • Other operating result impacted by deconsolidation of EB Ukraine and higher banking tax • Risk costs declined in retail & SME business, rose in corporate business Balance sheet – Sep 13 vs Dec 12 • Reported deposits at EUR 122.1bn • Customer loans declined to EUR 129.5bn • Driven mainly by GCIB and Romania • Loan/deposit ratio improved to 106.1% vs 107.2% at Dec 12 Asset quality • NPL ratio improved qoq to 9.6%, but still up ytd (Dec 12: 9.2%), NPL coverage ratio up to 63.0% (Dec 12: 62.6%) • Positive migration trends with low risk share increasing in AT, CZ and SK Capital • Core tier 1 ratio (Basel 2.5) after capital increase and repayment of entire participation capital at 10.9% as of Sep 13 (Dec 12: 11.2%) • Solvency ratio stood at 15.8% (Dec 12: 15.5%) • Risk-weighted assets down to EUR 99.0bn on exposure reductions, UA exit 1-9 2013 results presentation 3 30 October 2013
  4. 4. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 4 30 October 2013
  5. 5. Operating environment: macro trends – Signs of economic recovery visible in CEE − Growth mainly driven by exports, however, domestic demand has also started to gradually improve Real GDP growth in Erste Group‘s core markets (in %) 4.4 − Consumer confidence has improved across the region in 2013 − Several countries following through with austerity measures to limit public debt 2.3 2.1 2.2 2.5 1.8 1.3 1.6 0.7 − Falling inflation in all CEE countries − Very low interest rate environment 1.6 1.8 1.0 0.2 -1.7 13e euro zone avg.: -0.3% AT Export growth in Erste Group‘s core markets (%, yoy) RO CZ 0.0 -0.8 -0.9 -1.1 -1.1 − CEE will benefit from lower indebtedness and positive economic fundamentals 2013e 2.0 0.7 0.5 2012 2011 3.2 2.7 0.8 2010 SK HU -1.7 -2.3 -2.0 HR RS Public debt in Erste Group‘s core markets (in %, 13e) 30 73.6 20 10 Euro zone avg. budget deficit: 2.9% Euro zone avg. public debt: 95.5% 46.0 0 80.0 73.3 63.0 54.9 37.8 -10 2013e: AT: 3.2%, CZ: 1.1%, RO: 6.8%, SK: 2.7%, HU: 2.6% -20 -30 -2.3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 AT 1-9 2013 results presentation CZ RO SK HU AT HR -3.0 CZ -2.8 RO -3.2 SK Gen gov balance/GDP 5 -2.8 HU -4.5 -5.0 HR RS Public debt/GDP 30 October 2013
  6. 6. Operating environment: macro trends – What has recently happened in CEE? − AT: economy continuously outgrows the euro zone − Remains one of the strongest economies in Europe − Unemployment rate (4.9% as of August 2013) is the lowest in the entire European Union − Public debt and budget deficit are below euro zone average and in line with other AAA rated nations − CZ: economy has emerged from recession in Q2 2013 − − − − − Economy grew by 0.6% qoq in Q2 driven mainly by recovering industry Higher consumer confidence led to an increase of household demand in Q2 for the first time since 2011 Fiscal restrictions expected to ease as government balance has significantly improved Underlying fundamentals (deficit, net exports, current account, banking sector) remain strong Inconclusive election results will complicate formation of a new, stable government − RO: acceleration of GDP growth expected for 2013 – recently updated to 2.5% (from 1.8%) − − − − Agriculture’s contribution to economy expected to significantly improve after weak 2012 RON central bank rate cut to 4.25% Construction performance to improve on infrastructure projects and supported by higher EU fund absorption rate New IMF/EU precautionary arrangement approved by IMF − HU: unpredictable economic environment prevails − Increased political risk ahead of general parliamentary elections in April/May 2014 − NBH extended funding for growth scheme for SMEs with an additional amount of HUF 2,000bn − NBH maintains expansive monetary policy stance: − Base rate was cut to 3.6% (further reductions in smaller steps expected (10bps or lower), NBH sees the bottom at 3-3.5%) − Inflation has remained very low due partly to administrative price reductions (1.3% yoy in August) − SK: economic growth for 2013 revised upward to 0.7% (from 0.5%) − Car industry continues to perform well (up 8% yoy in August) and contributes significantly to economy − HR: macroeconomic environment still weak, joined European Union as of 1 July 2013 − Enhanced FDI inflows and access to EU fund are the key to capturing growth opportunities 1-9 2013 results presentation 6 30 October 2013
  7. 7. Key financial indicators – EPS and ROE reflecting market environment YTD cost income ratio 50.9% 1-9 09 52.4% 51.9% YTD net interest margin 52.4% 49.9% 1-9 10 2.98% 1-9 11 1-9 12 1-9 13 1-9 09 Cash earnings per share** 3.03% 2.82% 1-9 10 1-9 11 1-9 12 2.70% 1-9 13 Cash return on equity** 10.7% 2.06 1.96 3.09% 1.82 1.49 10.3% 1.06 1.41 1.26 8.5% 6.8% 5.3% 6.5% 6.3% 0.85 4.5% 0.1% -0.26 -9.7% -2.87 1-9 09 1-9 10 1-9 11 1-9 12 1-9 13 1-9 09 1-9 10 1-9 11 1-9 12 1-9 13 ** Red bars denote reported EPS and ROE respectively. Cash EPS and EPS calculated on average number of shares of 405.5m. Cash EPS and Cash ROE adjusted for non-cash items totalling EUR 84.3m in 1-9 2013 (linear amortisation of customer relationships after tax and non-controlling interests and impairments). Cash EPS and EPS adjusted for dividend on participation capital (EUR 84.7m). 1-9 2013 results presentation 7 30 October 2013
  8. 8. Income statement (IFRS) 1-9 13 vs 1-9 12 – Net profit driven by risk costs, NII and banking tax in EUR million Net interest income Risk provisions for loans Net fee and commission income Net trading result General administrative expenses 1-9 13 1-9 12 Change 3,651.6 3,968.9 (8.0%) (1,260.0) (1,465.3) (14.0%) 1,346.3 1,284.3 4.8% 241.0 191.4 25.9% Higher income from securities trading Strict cost control across the group (2,743.0) (2,826.1) (2.9%) (578.5) (214.0) >100.0% (247.1) (173.0) 42.8% Result from financial instruments - FV (55.0) 36.3 na Result from financial assets - AfS (10.2) 19.2 1.5 (19.3) Low interest rates, subdued loan demand Significant reduction in retail & SME business Stronger securities business in Austria na Result from financial assets - HtM Comment na Other operating result Thereof banking taxes + FTT Pre-tax profit/loss 593.6 975.4 Taxes on income (31.0) (87.7%) Net profit/loss for the period 562.6 724.3 132.3 127.0 4.2% Attributable to owners of the parent 430.3 597.3 Valuation effects and write-downs (22.3%) Attributable to non-controlling interests Higher banking taxes in SK and HU (39.1%) (251.1) Higher banking levies, hybrid buybacks in 1-9 12 (28.0%) Release of deferred tax liability in Romania Better profitability of savings banks − NII impacted by gradual decline in loan book, mainly in GCIB, Romania & Hungary, and lower reinvestment yields for financial assets; also impacted by changed presentation of Czech pension fund result (1-9 13: EUR 28.7m) − Decline in risk provisions across most countries, most notably Romania; increase in large corporate and commercial real estate business − Strict cost control across the group results in further decline of general administrative expenses − Operating result declined by 4.7% 1-9 2013 results presentation 8 30 October 2013
  9. 9. Income statement (IFRS) drill-down – Other operating result in detail Other operating result (1-9 13): - EUR 578.5m Deconsolidation EB Ukraine • Banking and transactional taxes are biggest single item -76.6 Goodwill impairment • 1-9 13 negative one-off effects: at EUR 157.4m Banking & transaction -247.1 taxes -52.2 − Deconsolidation EB Ukraine − Goodwill impairment EB Croatia − Hungarian one-off on FTT and advance payment of banking tax for Q4 13 Other items -95.6 incl valuation adjustments on properties -49.0 -58.0 Amortisation of customer relationships 1-9 2013 results presentation Deposit insurance 9 30 October 2013
  10. 10. Income statement (IFRS) Q3 13 vs Q2 13 – Improved NII reflected in net profit in EUR million Net interest income Risk provisions for loans Q3 13 1,220.4 Change Q2 13 1,190.6 2.5% Comment Strong retail & SME, particularly in Austria (428.2) (429.6) (0.3%) 450.4 447.7 0.6% 80.5 82.7 (2.7%) General administrative expenses (900.1) (911.7) (1.3%) Other operating result (180.8) (294.4) (38.6%) Higher banking taxes (HU) and Ukraine exit in Q2 (62.5) (113.0) (44.7%) 100% of 2013 Hungarian banking tax in Q2 4.0 (12.5) Result from financial assets - AfS (20.7) (0.9) >100.0% Result from financial assets - HtM (1.1) (4.0) (72.5%) Net fee and commission income Net trading result Thereof banking taxes + FTT Result from financial instruments - FV na Pre-tax profit/loss 224.3 67.9 Taxes on income (56.0) 91.4 na Net profit/loss for the period 168.3 159.3 5.6% 39.2 34.3 14.3% 129.1 125.0 3.3% Attributable to non-controlling interests Attributable to owners of the parent >100.0% Release of deferred tax liability in Romania in Q2 − NII improved mainly in Austrian retail & SME business, also up in Czech Republic, Slovakia and Serbia − Improvements in FX trading did not fully offset decline in securities business in net trading result − Other operating result in Q2 13 impacted by Ukraine exit and advance payment of banking tax in HU 1-9 2013 results presentation 10 30 October 2013
  11. 11. Balance sheet (IFRS) – Lower customer loans, lower RWAs in EUR million Cash and balances with central banks Loans and advances to credit institutions Loans and advances to customers Risk provisions for loans and advances Derivative financial instruments Trading assets Financial assets - FV Financial assets - AfS Financial assets - HtM Equity holdings in associates Intangible assets Property and equipment Investment properties Current tax assets Deferred tax assets Assets held for sale Other assets Total assets Risk-weighted assets Sep 13 10,556 9,113 129,492 (7,899) 8,718 7,289 575 20,508 18,193 217 2,766 2,108 941 98 852 106 4,219 207,852 Dec 12 9,740 9,074 131,928 (7,644) 13,289 5,178 716 22,418 18,975 174 2,894 2,228 1,023 128 658 708 2,338 213,824 98,995 105,323 Change 8.4% 0.4% (1.8%) 3.3% (34.4%) 40.8% (19.7%) (8.5%) (4.1%) 24.8% (4.4%) (5.4%) (8.0%) (23.3%) 29.6% (85.1%) 80.5% (2.8%) Comment Reduction in most segments Driven by Hungary & GCIB Volume reduction and valuation changes Deconsolidation of EB Ukraine Inclusion of Czech pension fund (6.0%) − Customer loans declined mainly in GCIB, Romania & Hungary, also impacted by depreciation of most CEE local currencies year-to-date − Deconsolidation of Ukrainian subsidiary and exposure reduction lead to decrease in risk-weighted assets 1-9 2013 results presentation 11 30 October 2013
  12. 12. Balance sheet (IFRS) – Strong deposit base Sep 13 Dec 12 Deposits by banks 22,946 21,822 Customer deposits 122,060 123,053 27,232 29,427 (7.5%) 870 1,220 (28.7%) 7,318 10,878 (32.7%) 448 481 (6.8%) 1,474 1,488 (0.9%) Current tax liabilities 89 53 68.3% Deferred tax liabilities 200 324 (38.1%) 0 339 na Other liabilities 4,613 3,077 49.9% Subordinated liabilities 5,310 5,323 (0.2%) 15,290 16,339 3,491 3,483 0.2% 11,800 12,855 (8.2%) 207,852 213,824 (2.8%) in EUR million Debt securities in issue Value adjustments from Portfolio fair value hedges Derivative financial instruments Trading liabilities Provisions Liabilities associated with assets held for sale Total equity Attributable to non-controlling interests Attributable to owners of the parent Total liabilities and equity Core tier 1 ratio 10.9% Change Comment 5.2% (0.8%) Exclusion of Czech pension fund: EUR 1.7bn Deconsolidation of EB Ukraine Inclusion of Czech pension fund (6.4%) Early redemption of part.cap., capital increase 11.2% − Decline in equity due to early repayment of entire participation capital in the amount of 1.76bn − Continued underlying customer deposit inflows (+ EUR 0.7bn), offset by changed presentation of Czech pension fund − Core tier 1 ratio driven by repayment of participation capital, capital increase and decline in risk-weighted assets 1-9 2013 results presentation 12 30 October 2013
  13. 13. Segment highlights – Improvement in RO, solid results in EBOe, CZ and SK Top segment performers in 1-9 13: EB Oesterreich Romania ∆ 1,090 1,191 706 (6%) (444) (459) 273 248 (46%) (45) (82) (45%) (29) 60% (11) 23 na (206) na 143 11% (236) (251) 349 318 10% (305) (560) Other result (47) Net profit/loss 118 Risk costs 1% 716 569 Operating result 1-9 12 3% 585 Operating expenses 1-9 13 1-9 12 1-9 12 Operating income ∆ 1-9 13 1-9 13 in EUR million 159 Czech Republic (3%) 10% ∆ Slovakia ∆ 1-9 13 1-9 12 (8%) 405 404 0% (492) (531) (7%) (175) (175) 0% 598 660 (9%) 230 229 0% (96) (121) (21%) (25) (43) (41%) (41) (57) (27%) (32) (17) 92% 366 371 137 135 (1%) 1% Special management attention on: Hungary GCIB 1-9 13 1-9 12 ∆ (7%) (1%) 388 (137) 450 (145) (14%) (5%) 192 (12%) 251 305 (18%) (160) (147) 9% (381) (231) 65% Other result (106) (107) (1%) (49) (69) (29%) Net profit/loss (101) (64) (150) (10) >100% in EUR million 1-9 13 1-9 12 293 (124) 317 (125) 169 Risk costs Operating income Operating expenses Operating result ∆ 57% The operating result of the sub-segment Czech Republic, adjusted for the shift of the Czech pension fund, declined by 5%. 1-9 2013 results presentation 13 30 October 2013
  14. 14. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 14 30 October 2013
  15. 15. BCR turnaround – Restructuring well on track, NPL stock declines Key priorities Key priority #1: Improve asset quality The road to profitability in 2013 • NPL stock declined for the first time since 2008 due to lower new NPL formation, efficient recovery efforts and sell-offs in line with strategy • 7th consecutive quarter of improving NPL provisioning coverage, now at 61.9% • Risk provisions almost halved in 1-9 13 • Down by 45.6% yoy or EUR 255.5m to EUR 304.6m in the Romanian Retail & SME segment Key priority #2: Revive top line growth • Operating income up by 2.8% yoy, while slightly down by 1.2% qoq pressured by retail liability margins and still limited LCY lending market • New current account product launched in Q4 12: 280,000 bundles sold by end-Sep • Focus on transaction banking & fee business: increased share of net fees in operating income • Operating expenses improved by 6.0% yoy, while kept flat vs Q2 13 Key priority #3: Operational excellence • Large scale business restructuring completed, new retail and corporate models in place; ongoing product simplification and streamlining • Network optimisation: 562 retail branches as of Sep 13, down by 10% yoy • Group headcount target 7,500 FTE by end-2013, staff reduced by 15% yoy or about 1,300 FTE to 7,695 (incl. leased); own staff at 7,083 FTE in Sep 13, increased FTE in workout • Full effect of the restructuring to be seen in 2014 Key priority #4: Focus on LCY lending 1-9 2013 results presentation • RON standard mortgage book (excl. Prima Casa) more than doubled since the shift to LCY lending in Oct 12, over 30% market share in new originations • RON mortgage increasing from a very low base, however total volumes contract further while the mortgage market is still predominantly FX • Further emphasis on consumer loans & credit cards, total new originations up 18% yoy; attractive rates within new campaign for cash loans started in Oct 13 15 30 October 2013
  16. 16. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 16 30 October 2013
  17. 17. Loan book review – Slowing loan book decline − Customer loans declined by 0.2% qoq, 1.8% ytd reductions mainly in GCIB and Romania − Austria: stable ytd, up qoq in retail and SMEs/local corporates but decline in municipalities − CEE: declining loan book ytd, relatively stable qoq; increasing loan book in CZ and SK, down in RO, HU − GCIB decline due to commercial real estate and International Business Customer loans by main segments 150 131.9 130.3 129.8 129.5 120 18.8 17.9 17.7 17.2 16.7 90 48.5 47.8 47.1 46.8 46.7 65.9 65.7 65.1 65.3 65.6 Q3 12 in EUR billion 133.5 Q4 12 Q1 13 Q2 13 Q3 13 60 30 − Increased share of EUR and LCY loans 0 − Share of CHF loans decreased to 8.7% of total loan book as of Sep 2013 due to successful efforts to convert CHF loans in Austria and to reduction in HU Retail & SME: Austria Customer loans by currency 80% 1.6% 10.1% 1.2% 9.7% 1.2% 9.3% 1.3% 8.8% 19.6% 19.4% 19.1% 19.3% 60 1.2% 8.7% 19.5% 66.7% 67.7% 68.8% 69.1% 69.1% 20% 40 30 20 10 48.5 47.8 47.1 46.8 46.7 5.9 6.5 6.4 5.9 6.2 6.6 5.9 5.9 6.7 6.0 5.5 6.8 5.9 5.6 6.8 10.8 10.7 10.5 10.3 9.9 17.8 17.9 17.5 17.6 17.9 Q3 12 50 60% 40% GCIB Quarterly loan book trends (Retail & SME detail: CEE) in EUR billion 100% Retail & SME - CEE Q4 12 Q1 13 Q2 13 Q3 13 0 0% Sep 12 EUR 1-9 2013 results presentation Dec 12 CEE-LCY Mar 13 CHF Jun 13 USD Sep 13 Other Czech Republic 17 Romania Slovakia Hungary Croatia Other CEE 30 October 2013
  18. 18. Asset quality review – First visible qoq NPL ratio reduction since 2008 − NPL ratio down qoq, but still up 0.4pp ytd Erste Group: NPL ratio vs NPL coverage − Ytd increase driven by GCIB and declining loan book − NPL reduction of EUR 61m qoq in Romania − NPL sales in Q3 13 at EUR 118m, mostly in HU and RO (Q2 13: EUR 91m) − Risk costs at 129 bps ytd on average customer loans 30% 73.0% 72.8% 71.9% 73.3% 9.2% 9.4% 9.7% 9.6% Dec 12 Mar 13 Jun 13 Sep 13 0% 50% NPL ratio 8% 1,200 73.9% 1.1% 400 -0.6% -1.2% Low risk Management attn 1-9 2013 results presentation Jun 13 -147 Sep 12 Substandard Sep 13 18 -1.0% Dec 12 -125 Mar 13 NPL growth (absolute) Non-performing 340 134 0% 0 -400 Mar 13 4% 2.8% 800 -73 0% Dec 12 NPL coverage (excl. collateral) 1,600 9.6% 3.0% 13.5% 20% Sep 12 55% Quarterly NPL growth (absolute/relative) 60% 40% 9.2% 5% in EUR million 80% 9.7% 2.9% 14.1% 65% 60% Sep 12 10% Customer loans by risk class 9.4% 3.1% 14.5% 63.0% 61.7% 15% − Increase of low risk share in AT and CEE, especially in CZ, SK and HU 9.2% 3.0% 15.0% 62.4% 20% − Positive migration in performing categories 9.2% 3.2% 15.7% 62.6% 25% − NPL coverage ratio improved to 63.0% 100% 63.1% Jun 13 -4% Sep 13 NPL growth (relative) 30 October 2013
  19. 19. Asset quality review – AT, CZ & SK improve, while RO stabilises − Retail & SME/Austria: asset quality stable NPL ratios in key segments − NPL ratio stable at 5.5% − NPL coverage ratio slightly down to 60.7% 35% 31.3% 30% − Hungary: uptick in NPLs in the retail segment (CHF portfolio) ahead of expected government support scheme in Nov (moral hazard issue) 27.4% 25% 20% 15% − NPL ratio up to 27.4% − Coverage ratio stable at 63.2% 10% 9.7% 5.5% 5% − Romania: first quarter of decline in NPL formation since beginning of the crisis 5.6% 4.8% 0% Austria Czech R Romania Slovakia Hungary − On-going efforts to build up strong capabilities to tackle non-performing portfolio − NPL ratio increased to 31.3% on shrinking loan book − NPL coverage improved further to 61.9% as a result of increased provisioning Sep 12 Dec 12 Mar 13 Jun 13 GCIB Sep 13 NPL coverage ratios in key segments (excluding collateral) 100% 92.1% 80.3% 80% 60% 63.2% 61.9% 60.7% 62.8% 40% 20% 0% Austria Czech R Romania Slovakia Hungary Sep 12 1-9 2013 results presentation 19 Dec 12 Mar 13 Jun 13 GCIB Sep 13 30 October 2013
  20. 20. Asset quality review – Risk costs further decreased in retail & SME business − Slovakia: further good quality loan growth − NPL ratio further declined to 5.5% − NPL coverage ratio stood at 92.1% − Loan growth mainly with retail clients Risk costs in key segments 8% − Czech Republic: NPL ratio reduction from already low base 6% 3.96% 4% − NPL ratio decreased to 4.8% − NPL coverage ratio further increased to 80.3% 2% − Croatia: NPL ratio increases despite slowdown in qoq NPL formation 3.22%2.57% 0.40% AT CZ RO Q3 12 Q4 12 600 500 400 484 Q2 13 Group Q3 13 42 84 41 12 515 43 117 200 195 68 10 177 35 76 19 81 Q3 12 Q4 12 300 0 Austria Slovakia 20 Q1 13 GCIB HU 700 100 1-9 2013 results presentation SK Risk costs in key segments in EUR million − NPL ratio increased to 9.7% driven by commercial real estate and corporate business in Hungary − NPL coverage ratio stood at 62.8% 0.22% 0% − NPL ratio increased to 21.2% − Asset quality development reflects current economic situation − GCIB: significant loan reductions in both corporate and commercial real estate business 1.31% 0.73% 430 428 34 118 43 137 60 14 111 34 16 55 8 94 29 92 46 4 100 32 67 Q1 13 Q2 13 402 42 127 Czech Republic Hungary Q3 13 Romania GCIB 30 October 2013
  21. 21. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 21 30 October 2013
  22. 22. Funding update – Continued strong deposit performance − Strong customer deposit base − GCIB deposits increased by 18.6% ytd − Retail & SME deposits in Austria down by 0.5% − Nominal decline in the Czech Republic due to changed presentation of Czech pension fund and currency depreciation − Ytd decline in Romania on weaker RON and repricing efforts; deposits stable qoq − Growth in Slovakia, Croatia and Serbia ytd Customer deposit trends by main segments 123.1 123.1 122.5 122.1 4.9 5.5 6.2 6.1 6.5 49.5 48.9 48.5 48.5 63.5 64.2 64.3 65.0 63.9 Q3 12 in EUR billion 122.2 50.8 125 Q4 12 Q1 13 Q2 13 Q3 13 100 75 50 25 0 − Loan/deposit ratio amounted to 106.1% as of Sep 2013 (YE 2012: 107.2%) Retail & SME: Austria 63.5 64.2 64.3 65.0 50.8 30.1 30.4 33.5 34.2 34.1 34.6 33.9 Q3 12 Q4 12 Q1 13 Q2 13 48.9 48.5 48.5 40 4.2 4.0 7.6 4.1 3.9 8.2 4.3 3.9 8.0 4.4 3.6 8.0 30 7.6 7.6 7.5 7.3 7.3 26.8 25.6 24.5 24.4 24.6 Q3 12 30.0 30 15 49.5 4.2 4.0 7.4 Q4 12 Q1 13 Q2 13 Q3 13 50 in EUR billion in EUR billion 45 30.0 Group Markets 60 63.9 60 30.0 GCIB Customer deposit trends by subsegments (Retail & SME detail: CEE) Customer deposit trends by subsegments (Retail & SME detail: Austria) 75 Retail & SME - CEE Q3 13 20 10 0 0 Savings banks 1-9 2013 results presentation Czech Republic EB Oesterreich 22 Romania Slovakia Hungary Croatia Other CEE 30 October 2013
  23. 23. Funding update – Strong liquidity position, limited funding requirements − Short-term funding needs very well covered Evolution of funding mix − Investment in highly liquid assets resulted in comfortable collateral coverage of short-term funding needs 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% − Elevated deposit volumes and subdued loan demand limit long term funding needs − Focus on retail issuance in 2013 − Continuation of longer dated issuances to flatten redemption profile (ytd: 8.0yrs) 3.0% 9.0% 10.5% 3.0% 8.2% 12.2% 2.7% 8.3% 11.1% 2.8% 7.9% 11.9% 15.6% 16.3% 15.8% 15.0% 14.1% 58.9% 61.1% 60.9% 62.8% 63.3% Dec 09 − Long-term funding 3.2% 8.5% 13.8% Dec 10 Dec 11 Dec 12 Sep 13 Customer deposits Deposits by banks Subordinated liabilities Redemption profile of Erste Group September 2013 Wholesale funding outflow (<1y) vs collateral coverage 165.1% 50 6 5.3 141.7% 40 4 3.5 3 in EUR billion in EUR billion 5 3.8 2.3 2.6 2.2 2.2 2 1 Issued bonds & CDs Equity 1.4 1.0 0.9 27.9 31.6 22.3 107.4% 120% 26.1 20 20.5 60% 0 Tier 2 0% Dec 09 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+ 1-9 2013 results presentation 24.0 33.9 0.6 0.1 Covered bonds 39.4 116.3% 27.6 25.7 180% 10 1.2 0 Senior unsecured 30 151.1% S-t funding Debt CEE subsidiaries 23 Dec 10 Dec 11 Dec 12 Unencumbered collateral Sep 13 Collateral coverage 30 October 2013
  24. 24. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 24 30 October 2013
  25. 25. Capital position – Capital increase & participation capital repayment in Q3 Capital position (Sep 2013) CT1 (Basel 2.5) ratio 10.9% Capital development Recent developments Core tier 1 ratio (total risk) − First and to date only Austrian bank that fully repaid the participation capital (EUR 1.76 bn) − Capital increase of EUR 660.6m conducted in July 10.9% 9.6% 6.9% 7.7% 7.8% Dec 10 Dec 11 − CT1 capital at EUR 10.8bn (YE 2012: EUR 11.8bn) Solvency ratio 15.8% − RWAs down to EUR 99.0bn on Ukraine deconsolidation and lower exposure Dec 09 Dec 12 Sep 13 − Transition in Romania of the calculation of RWA from standardised approach to IRB approach is expected in 2015 with a negative impact of approx. 40bps CET1 ratio (fully loaded Basel 3) 10.3% − Slightly increased Basel 3 impact (55 bps) based on current, changed interpretation of prudent valuation and index/fund lookthrough guidelines Core tier 1 ratio (CT1 ratio) = tier 1 capital excl. hybrid and after regulatory deductions divided by total RWA, including credit risk, market and operational risk. Based on Basel 2.5. 2009 – 2012 data adjusted for participation capital repayment. 1-9 2013 results presentation 25 30 October 2013
  26. 26. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 26 30 October 2013
  27. 27. Conclusion – Outlook − Erste Group expects a slight improvement in economic performance for Central and Eastern Europe until year-end 2013, loan demand not expected to pick up significantly − For 2013 Erste Group expects operating result to decline up to 5% compared to 2012 − Lower operating income as a result of moderate loan demand and low interest rates − Partially offset by lower operating costs − Group risk costs are expected to decline by 10-15% in 2013 − Mainly due to declining risk costs in Romania − Excluding any negative effects from potential FX borrower support scheme in Hungary − Romanian Retail & SME sub-segment is expected to return to profitability in 2013 − Irrespective of extraordinary tax-effect 1-9 2013 results presentation 27 30 October 2013
  28. 28. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 28 30 October 2013
  29. 29. Segment review – Improved profitability in the Retail & SME segment Retail & SME GCIB 1-9 13 1-9 12 Net interest income Risk provisions for loans and advances Net fee and commission income Net trading result General administrative expenses Other result Pre-tax profit/loss 3,048.4 (890.9) 1,206.7 116.3 (2,296.9) (250.6) 932.9 3,249.8 (1,234.7) 1,173.1 90.4 (2,410.1) (194.4) 674.1 300.6 (381.2) 74.3 13.4 (137.2) (48.9) (178.9) 381.0 (230.6) 62.9 6.2 (145.0) (69.1) 5.4 154.2 11.3 97.8 106.5 (159.2) (1.4) 209.3 154.8 0.0 94.9 162.8 (159.4) 4.4 257.5 148.4 0.7 (32.5) 4.7 (149.8) (341.3) (369.7) (104.9) 828.0 0.0 828.0 (169.3) 504.8 0.0 504.8 26.8 (152.2) 0.0 (152.2) (5.1) 0.3 0.0 0.3 (44.9) 164.4 0.0 164.4 (56.1) 201.4 0.0 201.4 133.1 694.8 120.7 384.1 (2.2) (150.0) 10.6 (10.3) 4.7 159.7 67,725.9 70,643.3 4,900.9 52.5% 18.9% 4,931.5 53.4% 10.4% Attributable to non-controlling interests Attributable to owners of the parent Average risk-weighted assets Average attributed equity Cost/income ratio Return on equity EOP customer loans EOP customer deposits 112,338.1 114,438.9 112,412.9 114,270.8 1-9 12 20,075.7 21,358.3 1,988.1 35.3% na 16,671.6 6,543.6 2,137.0 32.2% na 18,778.6 4,880.7 1-9 13 Corporate Center in EUR million Taxes on income Post-tax profit/loss Post-tax profit from discontinuing operations Net profit/loss for the period 1-9 13 Group Markets 1-9 12 1-9 13 1-9 12 Total Group 1-9 13 1-9 12 183.3 0.0 (46.6) (68.0) (111.6) 81.3 38.4 3,651.6 (1,260.0) 1,346.3 241.0 (2,743.0) (642.2) 593.6 3,968.9 (1,465.3) 1,284.3 191.4 (2,826.1) (177.8) 975.4 92.1 (277.7) 0.0 (277.7) (20.6) 17.8 0.0 17.8 (31.0) 562.6 0.0 562.6 (251.1) 724.3 0.0 724.3 5.7 195.7 (3.4) (274.2) (10.0) 27.8 132.3 430.3 127.0 597.3 2,474.3 2,738.5 (1,261.3) 9.1 89,014.7 94,749.2 386.6 44.4% 55.1% 353.0 38.6% 73.9% 5,507.0 124.2% na 5,247.7 162.4% 0.7% 12,782.6 52.4% 4.5% 12,669.2 51.9% 6.3% 117.3 2,333.0 128.9 1,578.1 365.2 770.4 160.2 129,492.2 133,506.5 1,519.4 122,059.8 122,249.0 Corporate Center including intragroup eliminations 1-9 2013 results presentation 29 30 October 2013
  30. 30. Region – Austria Net profit improves on lower risk costs Savings banks in EUR million Net interest income Risk provisions for loans and advances Net fee and commission income Net trading result General administrative expenses Other result Pre-tax profit/loss 1-9 13 EB Oesterreich 1-9 12 1-9 13 1-9 12 Austria 1-9 13 1-9 12 674.8 (129.8) 312.0 16.2 (696.3) (2.4) 174.5 701.7 (159.2) 291.4 20.1 (706.6) (2.1) 145.3 453.3 (45.1) 253.9 9.1 (443.8) (11.2) 216.3 467.5 (81.5) 240.8 (1.9) (458.5) 23.4 189.8 1,128.1 (174.9) 566.0 25.2 (1,140.1) (13.6) 390.7 1,169.2 (240.7) 532.2 18.2 (1,165.1) 21.3 335.1 (45.8) 128.7 0.0 128.7 (37.1) 108.2 0.0 108.2 (51.8) 164.4 0.0 164.4 (41.8) 148.0 0.0 148.0 (97.6) 293.1 0.0 293.1 (78.9) 256.2 0.0 256.2 111.5 17.2 99.1 9.1 5.6 158.9 4.6 143.4 117.0 176.1 103.7 152.5 Average risk-weighted assets Average attributed equity Cost/income ratio Return on equity 22,435.6 399.1 69.4% 5.7% 23,581.0 364.2 69.7% 3.3% 12,703.6 1,285.2 62.0% 16.5% 13,120.3 1,291.0 64.9% 14.8% 35,139.2 1,684.3 66.3% 13.9% 36,701.3 1,655.3 67.8% 12.3% EOP customer loans EOP customer deposits 37,499.1 33,910.4 37,690.5 33,503.2 28,096.4 29,956.9 28,202.5 29,962.3 65,595.6 63,867.3 65,893.1 63,465.5 Taxes on income Post-tax profit/loss Post-tax profit from discontinuing operations Net profit/loss for the period Attributable to non-controlling interests Attributable to owners of the parent 1-9 2013 results presentation 30 30 October 2013
  31. 31. Region – Central and Eastern Europe (1) Romania shows most significant yoy improvement Czech Republic in EUR million 1-9 13 Romania 1-9 13 1-9 12 Hungary Slovakia 1-9 12 1-9 13 1-9 12 1-9 13 1-9 12 747.2 (95.7) 309.8 33.2 (492.0) (41.3) 461.3 842.6 (120.5) 334.5 14.0 (531.1) (56.5) 483.0 437.6 (304.6) 103.4 43.7 (236.2) (47.1) (3.1) 423.7 (560.1) 90.5 54.9 (251.4) (29.4) (271.8) 322.5 (25.4) 78.8 3.6 (174.7) (31.9) 172.8 318.0 (43.4) 82.8 3.0 (174.7) (16.6) 169.1 201.9 (160.1) 87.2 4.0 (123.7) (106.4) (97.0) 257.6 (147.1) 67.8 (8.6) (125.0) (107.4) (62.7) (93.1) 368.3 0.0 368.3 (101.1) 381.9 0.0 381.9 127.4 124.3 0.0 124.3 53.0 (218.8) 0.0 (218.8) (36.2) 136.6 0.0 136.6 (33.7) 135.4 0.0 135.4 (3.9) (100.9) 0.0 (100.9) (1.4) (64.1) 0.0 (64.1) 1.8 366.5 11.3 370.6 6.1 118.2 (12.6) (206.2) 0.0 136.6 0.2 135.2 0.0 (100.9) 0.0 (64.1) Average risk-weighted assets Average attributed equity Cost/income ratio Return on equity 12,707.1 1,319.4 45.1% 37.0% 12,524.6 1,268.6 44.6% 39.0% 6,994.9 678.9 40.4% 23.2% 8,281.8 791.5 44.2% na 3,940.0 416.9 43.2% 43.7% 4,173.6 432.2 43.3% 41.7% 4,041.1 415.4 42.2% na 3,645.0 372.8 39.5% na EOP customer loans EOP customer deposits 17,890.2 24,570.2 17,831.3 26,784.0 9,901.1 7,316.2 6,832.2 7,981.7 6,434.6 7,445.2 5,617.3 3,642.3 6,523.1 4,042.0 Net interest income Risk provisions for loans and advances Net fee and commission income Net trading result General administrative expenses Other result Pre-tax profit/loss Taxes on income Post-tax profit/loss Post-tax profit from discontinuing operations Net profit/loss for the period Attributable to non-controlling interests Attributable to owners of the parent 1-9 2013 results presentation 31 10,846.4 7,590.6 30 October 2013
  32. 32. Region – Central and Eastern Europe (2) Declining risk costs drive CEE performance Croatia in EUR million 1-9 13 Net interest income Risk provisions for loans and advances Net fee and commission income Net trading result General administrative expenses Other result Pre-tax profit/loss Serbia 1-9 12 1-9 13 Ukraine 1-9 12 1-9 13 CEE 1-9 12 1-9 13 1-9 12 175.2 (119.5) 50.6 8.0 (93.9) (9.9) 10.4 191.8 (107.6) 51.0 8.2 (101.8) (0.9) 40.7 29.7 (6.8) 9.7 1.9 (26.2) (1.0) 7.2 26.6 (6.1) 9.8 1.7 (24.5) (1.4) 6.1 6.2 (4.0) 1.2 (3.3) (10.1) 0.5 (9.4) 20.3 (9.2) 4.5 (1.0) (36.5) (3.5) (25.4) 1,920.3 (716.0) 640.7 91.1 (1,156.8) (237.0) 542.2 2,080.6 (994.0) 640.9 72.2 (1,245.0) (215.7) 339.0 (0.8) 9.5 0.0 9.5 (7.2) 33.5 0.0 33.5 (0.7) 6.5 0.0 6.5 0.0 6.1 0.0 6.1 0.0 (9.4) 0.0 (9.4) 0.0 (25.4) 0.0 (25.4) (7.3) 534.9 0.0 534.9 (90.4) 248.6 0.0 248.6 7.8 1.7 16.8 16.7 0.4 6.1 1.3 4.8 0.0 (9.4) 0.0 (25.4) 16.1 518.8 17.0 231.6 Average risk-weighted assets Average attributed equity Cost/income ratio Return on equity 3,811.8 272.9 40.2% 0.8% 4,089.4 291.4 40.6% 7.6% 598.4 59.0 63.5% 13.8% 485.8 40.9 64.3% 15.7% 493.5 54.2 247.1% na 741.8 78.8 153.4% na 32,586.7 3,216.7 43.6% 21.5% 33,942.0 3,276.2 44.6% 9.4% EOP customer loans EOP customer deposits 5,926.5 4,406.5 5,918.7 4,196.6 575.2 628.6 539.2 492.1 452.5 254.7 46,742.5 48,545.6 48,545.8 50,805.3 Taxes on income Post-tax profit/loss Post-tax profit from discontinuing operations Net profit/loss for the period Attributable to non-controlling interests Attributable to owners of the parent 0.0 0.0 Due to the deconsolidation following the sale of EB Ukraine, only the results of the first 3 months are included in 2013 1-9 2013 results presentation 32 30 October 2013
  33. 33. Segment Retail & SME – Net profit up on lower risk costs − Decline in operating expenses almost offsets decrease in operating income in EUR million − Net profit increased on lower risk provisions in particular in RO and AT and positive tax one-off in RO − ROE improved to 18.9% (1-9 13: 10.4%) − CIR stood at 52.5% (1-9 13: 53.4%) 1-9 2013 results presentation 33 3,249.8 1,173.1 90.4 (2,410.1) 2,103.2 (1,234.7) (194.4) 384.1 Q3 13 Q2 13 Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Main negative drivers for the ytd other result are higher banking tax in SK and HU and FTT in HU − Main drivers for positive development in 2012 in Austria were sales of financial assets and real estate 3,048.4 1,206.7 116.3 (2,296.9) 2,074.4 (890.9) (250.6) 694.8 in EUR million − Other result improved both in Austria and CEE qoq, but declined yoy 1-9 12 Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Operating income decreased by 3.1% yoy − Growing share of secured lending in portfolio composition and sluggish demand for unsecured consumer lending led to decline in net interest income − Low interest rate environment additionally weighing on NII − Improved net trading result in Austria and CEE − Improved net commission income in Austria yoy, stable in CEE − Strict cost control resulted in decreased operating expenses 1-9 13 1,022.3 401.8 51.2 (753.4) 721.9 (291.5) (80.2) 222.7 1,004.5 402.5 26.3 (768.7) 664.7 (322.3) (117.2) 250.1 Change (6.2%) 2.9% 28.7% (4.7%) (1.4%) (27.8%) 28.9% 80.9% Change 1.8% (0.2%) 94.6% (2.0%) 8.6% (9.6%) (31.5%) (10.9%) 30 October 2013
  34. 34. Segment Retail & SME – Loan book analysis Segment Retail & SME Customer loans by currency Segment Retail & SME Customer loans by Basel II customer segment 114.4 113.6 112.2 112.0 112.3 6.3 6.6 6.4 6.2 6.4 90 44.5 43.7 43.1 43.2 42.9 60 12.3 12.1 12.0 12.0 12.1 51.3 51.1 50.7 50.7 51.0 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 in EUR billion 120 100% 1.7% 11.0% 1.3% 10.6% 1.2% 10.0% 1.2% 9.8% 21.6% 21.4% 21.2% 21.2% 21.5% 64.8% 65.9% 67.0% 67.5% 67.5% Sep 12 80% 2.1% 11.5% Dec 12 Mar 13 Jun 13 Sep 13 60% 30 40% 20% 0% 0 Private individuals Retail - Micros SME/local corporates Municipalities EUR Segment Retail & SME NPL ratio vs NPL coverage 100% 62.5% 63.0% 80% Other 60% 40% 40% 20% 0% 62.4% 80% 20% 62.1% 100% 60% 25% 62.2% CHF Migration analysis - Segment Retail & SME 30% 20% CEE-LCY 0% 9.6% 3.0% 15.5% 9.5% 2.8% 14.5% 9.6% 2.8% 14.1% 9.7% 2.6% 13.8% 9.6% 2.6% 13.1% 72.0% 73.2% 73.6% 73.8% 74.7% Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 15% 10% 9.6% 9.5% 9.6% 9.7% 9.6% 5% 0% Sep 12 Dec 12 NPL ratio 1-9 2013 results presentation Mar 13 Jun 13 Sep 13 NPL coverage (excl collateral) Low risk 34 Management attn Substandard Non-performing 30 October 2013
  35. 35. Segment GCIB excl IB – Net loss due to higher risk costs and lower NII − Operating result declined on lower NII in EUR million − Other result impacted by negative valuation effects Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Annualised risk costs increased to 255 bps in relation to average customer loans in 1-9 13 vs 146 bps in 1-9 12 in EUR million − NII declined mainly due to reduction of commercial real estate loans and volume declines in the large corporate business − Fee income increased mainly due to positive fee development in large corporate business in AT and syndicated lending activity in CZ − Net trading result improved yoy due to positive FX revaluations, declined qoq on FX revaluations and derivatives trading − Operating expenses declined yoy on lower expenses in commercial real estate business − Primarily due to provisions in commercial real estate business and in the large corporate business Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − NPL ratio increased to 9.7% in Sep 2013 vs 7.4% as of Dec 2012, coverage stood at 62.8% (Dec 2012: 67.2%) − CIR was up to 36.9% (1-9 13: 33.2%) 1-9 2013 results presentation 35 1-9 13 1-9 12 260.7 70.4 9.5 (125.6) 215.0 (378.4) (47.0) (174.7) 321.3 59.5 8.5 (129.3) 260.0 (226.1) (28.1) (10.0) Q3 13 85.7 22.0 (1.2) (41.8) 64.7 (136.7) (27.5) (83.8) Q2 13 84.4 22.2 5.9 (41.8) 70.8 (114.5) (11.8) (47.8) Change (18.9%) 18.3% 11.6% (2.9%) (17.3%) 67.4% 67.3% >100.0% Change 1.5% (1.1%) na 0.1% (8.5%) 19.4% >100.0% 75.4% 30 October 2013
  36. 36. International Business (GCIB) – Net profit on improved other result − Reduction of business impacts International Business unit result in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − NII declined as a result of significant portfolio downsizing − Trading result impacted by valuation results − Exposure declined ytd by 10.3% to EUR 2.9bn − No risk provisions booked in Q3 13 − Other result improved significantly yoy − Impairments and losses on sale of AfS and HtM securities in 2012 − Impairments on AfS portfolio in Q3 13 and lower securities valuations − Improved profitability yoy despite restructuring in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Annualised risk costs stood at 49 bps in relation to average customer loans in 1-9 13 (1-9 13: 44 bps) 1-9 2013 results presentation 36 1-9 13 1-9 12 39.9 4.0 3.9 (11.6) 36.2 (2.8) (1.9) 24.7 59.7 3.4 (2.4) (15.7) 45.0 (4.5) (40.9) (0.3) Q3 13 12.7 1.1 0.6 (4.2) 10.3 0.0 (5.9) 3.5 Q2 13 13.6 1.1 3.7 (3.9) 14.5 (3.4) (3.1) 6.4 Change (33.1%) 16.2% na (26.3%) (19.5%) (37.4%) (95.3%) na Change (6.3%) 3.7% (82.7%) 9.2% (29.3%) na 91.5% (45.6%) 30 October 2013
  37. 37. Segment GCIB (incl IB) – Loan book analysis Segment GCIB Customer loans by Basel II customer segment Segment GCIB - Customer loans by currency 25 in EUR billion 20 18.8 1.2 17.9 1.1 17.7 1.0 17.2 1.1 15 10 17.6 16.8 16.6 16.1 80% 16.7 1.0 5.4% 1.5% 7.3% 7.4% 5.3% 1.5% 6.9% 7.0% 5.3% 1.3% 6.6% 7.0% 5.1% 1.5% 6.7% 7.5% 5.1% 1.4% 6.4% 7.6% 78.5% 79.2% 79.8% 79.1% 79.5% Sep 12 100% Dec 12 Mar 13 Jun 13 Sep 13 60% 40% 15.7 5 20% 0% 0 Sep 12 Dec 12 Mar 13 Corporates Jun 13 Sep 13 EUR Municipalities Segment GCIB NPL ratio vs NPL coverage 12% 70.6% 67.2% 10% 8% 6.7% 7.4% 62.5% 8.6% 56.9% 9.6% USD CEE-LCY CHF Other Migration analysis - Segment GCIB 62.8% 9.7% 100% 80% 60% 7.4% 4.4% 18.2% 8.6% 4.9% 16.8% 9.6% 4.8% 15.6% 9.7% 5.7% 16.1% 71.4% 70.0% 69.8% 70.1% 68.5% Sep 12 80% 6.7% 4.6% 17.3% Dec 12 Mar 13 Jun 13 Sep 13 60% 6% 40% 40% 4% 20% 20% 2% 0% 0% Sep 12 Dec 12 NPL ratio 1-9 2013 results presentation Mar 13 Jun 13 0% Sep 13 Low risk NPL coverage (excl collateral) 37 Management attn Substandard Non-performing 30 October 2013
  38. 38. Segment Group Markets – Net profit down on lower trading result − Operating result and net profit declined substantially on lower net trading result in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − NII stable yoy, improvements qoq due to group equity trading and credit trading − Fee income improved on higher contributions from Erste Asset Management − Net trading result declined due to global money market, government bonds, credit & rates trading − Operating expenses flat yoy and decreased qoq on lower personnel expenses − CIR up to 44.4% (1-9 12: 38.6%) in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss 1-9 2013 results presentation 38 1-9 13 1-9 12 154.2 97.8 106.5 (159.2) 199.4 11.3 (1.4) 159.7 154.8 94.9 162.8 (159.4) 253.1 0.0 4.4 195.7 Q3 13 58.5 32.6 21.7 (50.0) 62.7 (0.6) 0.1 45.9 Q2 13 51.7 32.0 39.6 (55.5) 67.9 11.9 (1.0) 65.5 Change (0.4%) 3.1% (34.6%) (0.2%) (21.2%) na na (18.4%) Change 13.0% 1.7% (45.3%) (9.9%) (7.7%) na na (29.9%) 30 October 2013
  39. 39. Segment Corporate Center – 1-9 12 results impacted by one-offs − What is in the Corporate Center? in EUR million − Included are group services such as marketing, organisation, information technology as well as other departments supporting the group-wide implementation of the strategy as well as group balance sheet management plus intragroup consolidation and one-off non-operating effects − NII declined yoy mainly due to intragroup eliminations − Net trading result improved on the back of ALM valuation results − Operating expenses driven by intragroup consolidation of banking support operations Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss 1-9 13 1-9 12 148.4 (32.5) 4.7 (149.8) (29.2) 0.7 (341.3) (274.2) 183.3 (46.6) (68.0) (111.6) (42.9) 0.0 81.3 27.8 Change (19.1%) (30.3%) na 34.2% (32.0%) na na na − Main drivers of other result: − Positive one-off effect in 1-9 12 due to buy back of tier 1 and tier 2 instruments in the amount of EUR 413.2m − Negative one-off effect due to goodwill impairments in the amount of EUR 210.0m (BCR) in 1-91 12 and in the amount of EUR 52.2m (EB Croatia) in 1-9 13. − Deconsolidation of EB Ukraine amounted to EUR 76.6m − Linear amortisation of customer relationships was EUR 49.0m − Banking tax of Erste Holding was EUR 110.6m in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss Q3 13 41.1 (7.0) 8.2 (50.7) (8.4) 0.5 (85.1) (59.2) Q2 13 36.3 (10.2) 7.1 (41.9) (8.6) (1.5) (178.8) (149.2) Change 13.2% (31.2%) 14.9% 21.0% (2.6%) na (52.4%) (60.3%) Corporate Center including intragroup eliminations 1-9 2013 results presentation 39 30 October 2013
  40. 40. Retail & SME: Austria/EB Oesterreich – Improved net profit supported by lower risk costs − Operating result improved year-on-year by 9.9% in EUR million − NII decreased yoy as a result of the low interest rate environment and lower margins, improved qoq on higher volumes − Fee income increased yoy on improved securities business − Net trading improved on valuation effects Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Decrease in operating expenses due to reduction of the cost base − NPL coverage improved to 66.5% (Dec 2012: 65.7%) − NPL ratio down to 3.6% as of Sep 2013 − CHF loans as percentage of total loans declined further from 11.8% as of Dec 2012 to 10.1% as of Sep 2013 due to persistent efforts to convert CHF loans − Other result in 1-9 12 was mainly driven by selling gains on AfS financial assets and real estate in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Net profit improved yoy on stronger operating performance and lower risk costs, NII improved qoq on higher volumes − CIR improved to 62.0% (1-9 12: 64.9%) − Segment ROE of 16.5% (1-9 12: 14.8%) 1-9 2013 results presentation 40 1-9 13 1-9 12 453.3 253.9 9.1 (443.8) 272.5 (45.1) (11.2) 158.9 467.5 240.8 (1.9) (458.5) 247.9 (81.5) 23.4 143.4 Q3 13 155.3 81.6 1.7 (142.4) 96.2 (7.5) (4.2) 62.1 Q2 13 146.6 84.9 0.7 (151.3) 80.9 (40.1) (5.4) 25.3 Change (3.0%) 5.5% na (3.2%) 9.9% (44.7%) na 10.8% Change 6.0% (4.0%) >100.0% (5.9%) 18.9% (81.3%) (21.6%) >100.0% 30 October 2013
  41. 41. Retail & SME: Austria/EB Oesterreich – Loan book analysis Subsegment EB Oesterreich Customer loans by currency Subsegment EB Oesterreich Customer loans by Basel II customer segment 28.2 1.8 28.1 1.8 27.8 1.8 27.9 1.5 11.8 11.8 11.6 11.9 12.0 2.8 2.8 2.8 100% 28.1 1.5 2.8 30 2.9 1.5% 1.6% 1.9% 1.3% 1.2% 10.1% in EUR billion 12.5% 20 85.6% 11.7 11.6 11.6 Dec 12 Mar 13 Jun 13 87.2% 88.3% 88.7% Sep 12 Sep 13 Dec 12 Mar 13 Jun 13 Sep 13 60% 0 Private individuals Retail - Micros SME/local corporates Municipalities EUR 30% CHF Other Migration analysis - Retail & SME/EB Oesterreich Subsegment Erste Bank Oesterreich NPL ratio vs NPL coverage 25% 86.6% 11.7 Sep 12 11.3% 80% 10 11.8 11.8% 10.4% 100% 100% 65.7% 67.0% 66.5% 66.5% 20% 3.6% 0.8% 3.8% 0.9% 3.6% 80% 3.8% 0.7% 60% 69.1% 3.6% 0.8% 8.5% 7.8% 7.7% 7.5% 7.1% 87.1% 87.7% 87.9% 87.9% 88.2% Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 1.1% 15% 40% 10% 3.6% 3.8% 3.6% 3.8% 3.6% Sep 12 5% Dec 12 Mar 13 Jun 13 20% Sep 13 0% 80% 0% NPL ratio 1-9 2013 results presentation NPL coverage (excl collateral) Low risk 41 Management attn Substandard Non-performing 30 October 2013
  42. 42. Retail & SME: Austria/Savings banks – Increased net profit on lower risk costs − Operating result stable yoy despite weaker net interest income in EUR million − NII decreased as a result of lower income from financial assets, up qoq on improved business volumes − Net fee income up primarily on the back of strengthened securities business and payment transfers − Net trading result declined yoy mainly on FX transactions, improved qoq mainly on securities trading Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Costs improved due to lower other administrative expenses and lower amortisation and depreciation − Annualised risk costs down to 45 bps in 1-9 13 driven by a decline in defaults − NPL ratio stable at 6.9% − NPL coverage decreased to 58.4% as of Sep 2013 vs 60.2% at Dec 2012 − CHF loans as percentage of total loans declined from 14.5% (Dec 2012) to 12.8% as of Sep 2013 due to persistent efforts to convert CHF loans in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − ROE improved to 5.7% (1-9 12: 3.3%) − CIR stood at 69.4% (1-9 12: 69.7%) 1-9 2013 results presentation 42 1-9 13 1-9 12 674.8 312.0 16.2 (696.3) 306.7 (129.8) (2.4) 17.2 701.7 291.4 20.1 (706.6) 306.6 (159.2) (2.1) 9.1 Q3 13 Q2 13 235.2 101.7 6.7 (230.6) 113.0 (59.7) 2.0 2.3 219.5 100.0 3.8 (235.5) 87.8 (52.0) (0.6) (1.1) Change (3.8%) 7.1% (19.5%) (1.5%) 0.0% (18.5%) 14.8% 89.1% Change 7.2% 1.7% 76.7% (2.1%) 28.7% 14.8% na na 30 October 2013
  43. 43. Retail & SME: Austria/Savings banks – Loan book analysis Subsegment Savings Banks Customer loans by Basel II customer segment in EUR billion 40 30 37.7 1.6 37.7 1.7 37.3 1.6 37.4 1.6 37.5 1.6 16.4 16.3 16.2 16.3 Subsegment Savings banks Customer loans by currency 16.2 100% 3.5% 15.5% 3.3% 14.5% 2.3% 13.8% 2.2% 13.1% 2.3% 12.8% 81.0% 82.2% 83.9% 84.7% 85.0% Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 80% 60% 20 6.7 6.7 6.6 6.6 6.6 13.0 13.0 12.9 13.0 13.2 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 40% 10 20% 0% 0 Private individuals Retail - Micros SME/local corporates EUR Municipalities 30% 100% 58.4% 60% 40% 20% 0% 59.4% 60% 20% 59.9% 80% 40% 60.2% 100% 80% 25% 59.6% Other Migration analysis - Retail & SME/Savings Banks Subsegment Savings banks NPL ratio vs NPL coverage 20% CHF 0% 7.0% 2.5% 16.6% 6.9% 2.4% 16.0% 6.9% 2.5% 16.3% 7.0% 2.5% 16.1% 6.9% 2.4% 15.3% 73.9% 74.8% 74.3% 74.4% 75.3% Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 15% 10% 7.0% 6.9% 6.9% 7.0% 6.9% 5% 0% Sep 12 Dec 12 NPL ratio 1-9 2013 results presentation Mar 13 Jun 13 Sep 13 NPL coverage (excl collateral) Low risk 43 Management attn Substandard Non-performing 30 October 2013
  44. 44. Retail & SME: Czech Republic – Net profit down on lower operating income − Operating result declined by 9.4% yoy, up qoq in EUR million − NII down on low interest rate environment and subdued loan demand as well as on changed presentation for the pension fund (NII impact in 1-9 13: EUR 28.7m) − Net fee income declined on decreased fees from payment transfers and lending business − Net trading result improved due to derivatives business − Operating expenses remain well under control − Annualised risk costs improved to 72bps in 1-9 13 vs 92bps in 1-9 12 − Improvement driven by better loan portfolio development in retail and corporate business − NPL ratio down to 4.8% (Dec 2012: 5.3%) − NPL coverage increased further to a comfortable 80.3% vs 72.2% at Dec 2012 Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Other result improved yoy but deteriorated qoq in EUR million − Net profit down by 1.1% yoy Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Improvement largely due to changed presentation of the Czech pension fund − Payment into deposit insurance fund remains key factor − Deterioration qoq due to real estate fund revaluation − Net interest margin* was at 3.46% in 1-9 13 − CIR stood at 45.1% (1-9 12: 44.6%) All figures including 2.4% currency depreciation (based on 1-9 2012 average rate) 1-9 2013 results presentation 44 1-9 13 1-9 12 747.2 309.8 33.2 (492.0) 598.2 (95.7) (41.3) 366.5 842.6 334.5 14.0 (531.1) 660.0 (120.5) (56.5) 370.6 Q3 13 247.9 98.9 14.8 (162.8) 198.8 (32.4) (31.3) 107.3 Q2 13 246.5 103.7 6.4 (163.7) 192.9 (29.2) (5.4) 125.8 Change (11.3%) (7.4%) >100.0% (7.4%) (9.4%) (20.6%) (27.0%) (1.1%) Change 0.6% (4.7%) >100.0% (0.5%) 3.1% 11.0% >100.0% (14.7%) * based on local entity data 30 October 2013
  45. 45. Retail & SME: Czech Republic – Loan book analysis Subsegment Czech Republic Customer loans by currency Subsegment Czech Republic Customer loans by Basel II customer segment 20 in EUR billion 12 17.5 0.7 17.6 0.7 17.9 0.7 100% 5.7 5.5 5.5 5.6 1.5 1.5 1.5 1.4 40% 10.0 10.0 9.9 9.9 0.1% 4.7% 96.4% 96.3% 95.9% 95.8% 95.2% Dec 12 Mar 13 Jun 13 Sep 13 20% Sep 12 Private individuals Dec 12 Retail - Micros Mar 13 Jun 13 SME/local corporates 0% Sep 13 Municipalities CZK 30% 100% 75.1% 75.8% 80.3% 80% 40% 20% 0% 5.5% 5.3% 5.2% 5.1% 4.8% Sep 12 Dec 12 Mar 13 Jun 13 NPL ratio 1-9 2013 results presentation 5.2% 2.9% 13.0% 5.1% 3.1% 11.9% 4.8% 2.5% 11.4% 76.4% 77.1% 78.9% 79.9% 81.2% Dec 12 Mar 13 Jun 13 Sep 13 0% Sep 13 0% 5.3% 3.0% 14.6% 20% 15% 5% 5.5% 2.9% 15.1% 60% 40% 20% 80% 60% 72.2% Other Sep 12 100% 72.9% EUR Migration analysis - Retail & SME/Czech Republic Subsegment Czech Republic NPL ratio vs NPL coverage 10% 0.1% 4.1% 10.1 0 25% 0.2% 3.9% 60% 8 4 0.2% 3.5% 80% 1.5 0.2% 3.4% Sep 12 17.9 0.7 5.7 16 17.8 0.6 NPL coverage (excl collateral) Low risk 45 Management attn Substandard Non-performing 30 October 2013
  46. 46. Retail & SME: Romania – Restructuring well under way, net profit in Q3 13 − Operating result improved yoy in EUR million − NII increased yoy on deposit repricing despite declining volumes − Strong underlying fee performance on payment transfers − Decline in net trading result yoy due to lower FX business − Restructuring efforts led to a visible decline in operating expenses Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Risk provisions significantly down by 45.6% yoy − NPL ratio stood at 31.3% as of Sep 2013 on shrinking loan book (Dec 2012: 28.3%) − NPL coverage improved to 61.9% compared to 58.6% in Dec 2012 1-9 13 1-9 12 437.6 103.4 43.7 (236.2) 348.6 (304.6) (47.1) 118.2 423.7 90.5 54.9 (251.4) 317.7 (560.1) (29.4) (206.2) Change 3.3% 14.3% (20.3%) (6.0%) 9.7% (45.6%) 60.2% na − Net result significantly improved on lower risk costs and on release of deferred tax liability in 1-9 13 − Deferred tax liability amounted to EUR 127.7m − Net profit in Q3 13 without one-off effect in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Net interest margin* increased yoy to 4.93% in 1-9 13 − CIR improved to 40.4% in 1-9 13 (1-9 12: 44.2%) All figures including 0.6% currency appreciation (based on 1-9 2012 average rate) 1-9 2013 results presentation 46 Q3 13 141.1 38.3 14.9 (77.4) 116.9 (99.6) (14.1) 1.5 Q2 13 146.6 36.9 13.3 (77.1) 119.6 (94.4) (23.8) 120.3 Change (3.7%) 3.7% 12.1% 0.4% (2.3%) 5.5% (40.6%) (98.8%) * based on local entity data 30 October 2013
  47. 47. Retail & SME: Romania – Loan book analysis Subsegment Romania Customer loans by Basel II customer segment 12 Subsegment Romania Customer loans by currency 100% 10.5 1.0 10.3 1.2 1.2 1.2 1.2 4.2 4.1 3.9 3.6 60% 0.7 0.6 0.6 0.6 0.6 4.7 4.7 4.6 4.6 4.5 20% Dec 12 Mar 13 Jun 13 Sep 13 1.3% 1.3% 61.7% 61.2% 60.8% 60.8% 59.7% 36.8% 37.4% 37.9% 37.9% 39.0% Dec 12 Mar 13 Jun 13 Sep 13 40% 9 6 3 1.4% 80% 4.4 1.3% 9.9 Sep 12 in EUR billion 10.7 1.4% Sep 12 10.8 0 Private individuals Retail - Micros SME/local corporates 0% Municipalities RON 40% 30% 80% 27.5% 58.6% 59.3% 28.3% 29.7% 60.4% 30.8% Other Migration analysis - Retail & SME/Romania Subsegment Romania NPL ratio vs NPL coverage 57.6% EUR 100% 61.9% 31.3% 20% 28.3% 29.7% 30.8% 31.3% 5.7% 20.6% 5.0% 19.3% 3.4% 23.7% 21.6% 4.5% 19.5% 42.9% 45.5% 46.0% 44.3% 44.7% Sep 12 60% 40% 27.5% 5.8% 80% 60% Dec 12 Mar 13 Jun 13 Sep 13 40% 10% 20% 0% 20% 0% 0% Sep 12 Dec 12 NPL ratio 1-9 2013 results presentation Mar 13 Jun 13 Sep 13 NPL coverage (excl collateral) Low risk 47 Management attn Substandard Non-performing 30 October 2013
  48. 48. Retail & SME: Slovakia – Solid operating performance continues − Operating result slightly improved in EUR million − NII improvement driven by retail loan growth − Fee income decreased yoy due to legislation limiting commissions for payment transfers − Net trading result influenced by valuation effects − Operating expenses well under control Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Net interest margin* up to 4.19% in 1-9 13 − Risk costs declined by 41.5% yoy − Annualised risk costs declined to 50bps in 1-9 13 vs 92bps in 1-9 12, mainly driven by improvements in the local corporate and real estate business − NPL ratio down to 5.6% as of Sep 2013 (Dec 2012: 6.6%) − NPL coverage traditionally very high, increased further to 92.1% vs 84.3% in Dec 2012 in EUR million − Other result driven by increase in banking tax Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Stable net profit contribution − CIR stable at 43.2% vs 43.3% in 1-9 12 1-9 13 1-9 12 322.5 78.8 3.6 (174.7) 230.1 (25.4) (31.9) 136.6 318.0 82.8 3.0 (174.7) 229.1 (43.4) (16.6) 135.2 Q3 13 110.8 26.1 1.7 (59.3) 79.3 (3.7) (11.2) 49.4 Q2 13 108.1 28.1 1.1 (59.3) 78.0 (7.9) (8.8) 49.1 Change 1.4% (4.8%) 19.0% 0.0% 0.4% (41.5%) 92.3% 1.0% Change 2.5% (7.0%) 47.5% 0.1% 1.6% (54.0%) 27.4% 0.5% * based on local entity data 1-9 2013 results presentation 48 30 October 2013
  49. 49. Retail & SME: Slovakia – Loan book analysis Subsegment Slovakia Customer loans by currency Subsegment Slovakia Customer loans by Basel II customer segment 8 in EUR billion 6.4 6 6.7 6.8 6.8 0.2 1.3 0.3 6.6 0.2 1.3 0.3 0.2 1.3 0.3 100% 4.6 0.2% 0.1% 0.1% 0.1% 99.8% 99.9% 99.9% 99.9% Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 80% 60% 4 2 0.1% 99.9% 0.2 1.3 0.3 0.2 1.3 0.3 4.9 4.8 40% 5.0 4.9 20% 0 0% Sep 12 Private individuals Dec 12 Mar 13 Retail - Micros Jun 13 Sep 13 SME/local corporates EUR (LCY) Municipalities Migration analysis - Retail & SME/Slovakia Subsegment Slovakia NPL ratio vs NPL coverage 30% 25% 95.9% 92.1% 80% 60% 40% 40% 20% 20% 0% 20% 100% 60% 88.5% 100% 80% 82.3% 84.3% Other 0% 7.5% 3.0% 12.3% 6.6% 2.9% 12.6% 5.9% 3.2% 12.0% 5.5% 3.2% 12.3% 5.6% 2.9% 12.0% 77.2% 77.8% 78.9% 79.1% 79.5% Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 15% 10% 7.5% 6.6% 5.9% 5.5% 5.6% Mar 13 Jun 13 Sep 13 5% 0% Sep 12 Dec 12 NPL ratio 1-9 2013 results presentation NPL coverage (excl collateral) Low risk 49 Management attn Substandard Non-performing 30 October 2013
  50. 50. Retail & SME: Hungary – Operating performance reflects deleveraging − Operating result down due to lower business volumes − NII declined on portfolio reduction, lower margins and higher FX refinancing costs − Fee income increased in retail and corporate business − Trading result up on valuation gains − Operating expenses stable − Other result strongly influenced by banking tax and FTT: − 1-9 12 affected by provisions for expected future taxes in the amount of EUR 60.6m − EUR 49.0m entire banking tax for the full year 2013 (1-9 12 reflects the pro-rata amount of EUR 33.2m) − EUR 36.8m FTT incl. one-off extraordinary financial transaction tax amounting to EUR 16.3m in 1-9 13, introduced in 2013 − Risk costs remain at elevated levels in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss in EUR million − Increased risk provisioning yoy in retail business − NPL ratio increased to 27.4% in Sep 2013 on shrinking loan book and expected government FX borrower support scheme (Dec 2012: 25.4%) − NPL coverage stood at 63.2% (Dec 2012: 64.1%) Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Negative net result due to weak operating result, high risk costs and high tax burden − CIR stood at 42.2% vs 39.5% at 1-9 12 1-9 13 1-9 12 201.9 87.2 4.0 (123.7) 169.5 (160.1) (106.4) (100.9) 257.6 67.8 (8.6) (125.0) 191.8 (147.1) (107.4) (64.1) Q3 13 Q2 13 65.3 31.3 7.3 (41.2) 62.7 (45.9) (16.6) (2.0) 66.6 29.2 (2.5) (40.5) 52.8 (54.7) (69.1) (71.4) Change (21.6%) 28.6% na (1.1%) (11.6%) 8.8% (1.0%) 57.4% Change (1.9%) 7.1% na 1.7% 18.7% (16.0%) (75.9%) (97.2%) All figures including 1.9% currency depreciation (based on 1-9 2012 average rate) 1-9 2013 results presentation 50 30 October 2013
  51. 51. Retail & SME: Hungary – Loan book analysis Subsegment Hungary Customer loans by currency Subsegment Hungary Customer loans by Basel II customer segment 10 100% in EUR billion 6.5 6.2 6 0.3 4 1.9 0.1 0.3 1.7 0.1 2 4.1 4.0 Private individuals Dec 12 Retail - Micros 0.3 1.6 0.0 3.9 5.5 5.6 0.1 1.6 0.0 0.3 1.5 0.0 60% 3.8 3.7 20% Mar 13 Jun 13 20% 0.1% 21.2% 47.1% 48.8% 48.7% 49.3% 48.5% 30.8% 29.9% 28.2% 28.1% 30.2% SME/local corporates Dec 12 Mar 13 Jun 13 Sep 13 0% Sep 13 Municipalities HUF CHF EUR Other Migration analysis - Retail & SME/Hungary 35% 25% 0.1% 22.5% 40% Subsegment Hungary NPL ratio vs NPL coverage 30% 0.0% 23.1% 80% 5.9 0 Sep 12 0.1% 21.2% Sep 12 8 0.1% 22.0% 100% 80% 63.4% 64.1% 63.5% 63.6% 63.2% 25.3% 25.4% 25.9% 27.3% 27.4% 60% 25.4% 25.9% 5.6% 6.8% 5.7% 5.0% 21.8% 23.6% 22.4% 21.3% 19.0% 46.9% 45.4% 44.9% 45.7% 48.7% Sep 12 60% 25.3% 5.9% 80% Dec 12 Mar 13 Jun 13 Sep 13 40% 15% 27.3% 27.4% 40% 10% 20% 20% 5% 0% 0% Sep 12 Dec 12 NPL ratio 1-9 2013 results presentation Mar 13 Jun 13 0% Sep 13 NPL coverage (excl collateral) Low risk 51 Management attn Substandard Non-performing 30 October 2013
  52. 52. Retail & SME: Croatia – Increase in risk costs impacts net profit − Operating result decreased yoy but up qoq in EUR million − NII declined partly due to lower margins − Fee income slightly down yoy, improvement in Q3 13 due to seasonal effect in retail card business and payment transfers − Net trading result up qoq on valuation effects Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − Operating expenses declined on successful cost management − Risk provisions up mainly due to corporate business − Annualised risk cost increased from 241bps in 1-9 12 to 259bps in 1-9 13 − NPL ratio increased to 21.2% in Sep 2013 compared to 18.1% at Dec 2012 − NPL coverage relatively stable at 50.2% (Dec 2012: 50.0%) − Other result mainly driven by payments into deposit insurance fund in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − 1-9 12 positively impacted by gains from securities sales − CIR stood at 40.2% (1-9 12: 40.6%) 1-9 13 1-9 12 175.2 50.6 8.0 (93.9) 139.8 (119.5) (9.9) 1.7 191.8 51.0 8.2 (101.8) 149.2 (107.6) (0.9) 16.7 Q3 13 56.2 20.5 3.5 (31.0) 49.1 (42.1) (4.1) (1.7) Q2 13 61.2 16.3 2.8 (32.3) 48.0 (40.4) (3.9) 1.7 Change (8.7%) (0.9%) (2.9%) (7.7%) (6.3%) 11.1% >100.0% (89.6%) Change (8.1%) 25.2% 24.6% (3.8%) 2.3% 4.3% 5.9% na All figures including 0.6% currency depreciation (based on 1-9 2012 average rate) 1-9 2013 results presentation 52 30 October 2013
  53. 53. Retail & SME: Croatia – Loan book analysis Subsegment Croatia Customer loans by Basel II customer segment Subsegment Croatia Customer loans by currency in EUR billion 4 5.9 5.9 5.9 6.0 0.6 0.7 0.7 0.8 0.8 2.5 2.4 2.4 2.4 2.3 100% 60% 0.2 0.2 0.2 0.2 0.2 0.2% 10.8% 0.3% 10.9% 65.8% 68.6% 68.4% 65.8% 65.3% 19.3% 19.8% 23.2% 23.5% Dec 12 Mar 13 Jun 13 Sep 13 40% 2.6 2.6 2.6 2.6 2.6 20% 0 0% Sep 12 Private individuals Dec 12 Mar 13 Retail - Micros Jun 13 SME/local corporates Sep 13 Municipalities HRK Subsegment Croatia NPL ratio vs NPL coverage 50.1% 50.0% 50.2% 25% 20% 0.3% 11.5% 80% 2 30% 0.2% 11.9% Sep 12 5.9 0.2% 12.2% 21.7% 6 17.3% 18.1% 19.1% 48.3% 20.5% EUR CHF Other Migration analysis - Retail & SME/Croatia 50.2% 100% 60% 17.3% 20.5% 21.2% 6.8% 22.9% 18.1% 6.3% 17.7% 5.6% 16.3% 5.5% 16.4% 52.8% 57.1% 57.0% 57.6% 56.9% Sep 12 40% 19.1% 7.0% 60% 21.2% 18.1% 80% Dec 12 Mar 13 Jun 13 Sep 13 15% 10% 40% 20% 20% 5% 0% 0% Sep 12 Dec 12 NPL ratio 1-9 2013 results presentation Mar 13 Jun 13 0% Sep 13 Low risk NPL coverage (excl collateral) 53 Management attn Substandard Non-performing 30 October 2013
  54. 54. Retail & SME: Serbia – Sound operating performance and net result − Operating result improved on higher NII in EUR million − NII up on corporate loan growth and improved retail margins − Net trading result driven by FX development Net interest income Net fee income − Operating expenses driven by personnel expenses Net trading result Operating expenses − Risk provision increase yoy driven by corporate Operating result business − Annualised risk costs improved to 149bps in 1-9 13 vs 167bps Risk provisions in 1-9 12 Other result − NPL ratio increased to 13.7% in Sep 2013 (Dec 2012: 12.0%) − Coverage remained at high level and stood at 80.5% in Sep 2013 Net profit/loss 1-9 13 1-9 12 29.7 9.7 1.9 (26.2) 15.1 (6.8) (1.0) 6.1 26.6 9.8 1.7 (24.5) 13.6 (6.1) (1.4) 4.8 Q3 13 Q2 13 Change 11.5% (1.1%) 10.8% 6.8% 10.8% 12.1% (28.0%) 27.0% vs 84.1% in Dec 2012 − Net profit improved substantially in EUR million − ROE at 13.8% (1-9 12: 15.7%) Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss − CIR stood at 63.5% vs 64.3% in 1-9 12 10.3 3.5 0.6 (8.6) 5.8 (0.7) (0.6) 3.9 9.6 3.3 0.7 (9.1) 4.6 (3.7) (0.3) 0.5 Change 7.5% 4.1% (13.1%) (5.5%) 27.7% (80.7%) 85.3% >100.0% All figures including 0.2% currency appreciation (based on 1-9 2012 average rate) 1-9 2013 results presentation 54 30 October 2013
  55. 55. Retail & SME: Serbia – Loan book analysis Subsegment Serbia Customer loans by currency Subsegment Serbia Customer loans by Basel II customer segment 569.2 575.3 562.9 575.2 539.2 3.4 334.7 in EUR million 4.3 2.8 360.1 2.7 346.0 0.7% 3.2% 0.7% 3.0% 0.7% 3.0% 0.7% 2.9% 74.7% 75.3% 75.4% 74.5% 74.8% 20.8% 20.9% 21.7% 21.6% Sep 12 100% 2.9 0.8% 3.3% 21.2% 600 Dec 12 Mar 13 Jun 13 Sep 13 357.0 80% 400 328.1 60% 8.5 28.5 13.6 13.0 12.0 40% 198.2 200 202.7 198.7 201.2 203.4 20% 0 0% Sep 12 Dec 12 Private individuals Mar 13 Retail - Micros Jun 13 Sep 13 SME/local corporates Municipalities RSD Subsegment Serbia NPL ratio vs NPL coverage 30% 87.7% 84.1% 25% 81.9% 100% 80% 11.4% 12.0% 13.3% 13.7% 10% 80% 60% 40% 20% 0% Sep 12 Dec 12 NPL ratio 1-9 2013 results presentation Mar 13 Jun 13 12.0% 2.5% 15.8% 12.7% 2.0% 15.7% 13.3% 2.1% 16.4% 13.7% 1.4% 16.2% 65.9% 69.7% 69.6% 68.2% 68.7% Dec 12 Mar 13 Jun 13 Sep 13 20% 0% 5% 11.4% 3.8% 18.9% 60% 40% 12.7% Other Sep 12 80.5% 20% 15% CHF Migration analysis - Retail & SME/Serbia 100% 80.8% EUR 0% Sep 13 NPL coverage (excl collateral) Low risk 55 Management attn Substandard Non-performing 30 October 2013
  56. 56. Retail & SME: Ukraine – Deconsolidation as of 29 April 2013 − Due to the deconsolidation following the sale of EB Ukraine, only the results of the first 3 months are included in 2013 1-9 2013 results presentation in EUR million Net interest income Net fee income Net trading result Operating expenses Operating result Risk provisions Other result Net profit/loss 56 1-9 13 1-9 12 6.2 1.2 (3.3) (10.1) (6.0) (4.0) 0.5 (9.4) 20.3 4.5 (1.0) (36.5) (12.7) (9.2) (3.5) (25.4) Change (69.3%) (73.5%) >100.0% (72.5%) (52.9%) (56.6%) na (62.9%) 30 October 2013
  57. 57. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 57 30 October 2013
  58. 58. Asset quality analysis – Key definitions − Key asset quality indicators are based on on-balance sheet customer loans Risk category Low risk − Reported NPL and NPL coverage ratios exclude collateral Management attention Substandard − Broad NPL definition − 90-day overdue or less than 90-day overdue if: Non-performing Agency ratings AAA to BB / Aaa to Ba B CCC to C / Caa to C D, R, RD, SD − Customer unlikely to pay, e.g. because customer defaulted against third party − Customer view instead of product view has been adopted. The former is the case with all corporate customers and all retail customers in Austria. In CEE retail product view prevails. Accordingly, if an Austrian retail customer defaults on one product all performing products are classified as NPLs as well. 1-9 2013 results presentation 58 30 October 2013
  59. 59. Asset quality analysis – Loan book overview Customer loans by Basel II customer segments 150 133.5 131.9 130.3 7.5 129.8 129.5 7.8 7.5 7.3 7.4 90 61.8 60.4 59.7 59.4 58.7 60 12.8 12.6 12.4 12.3 12.4 51.4 51.2 50.7 50.7 51.1 120 in EUR billion Customer loans by industries 30 3.7% 2.9%3.0% 4.6% 5.5% 6.3% 40.1% 4.4% 6.6% 7.4% 15.6% 0 Sep 12 Dec 12 Private individuals Mar 13 Retail - Micros Jun 13 Sep 13 Corporate Municipalities Households Trade Public administration Services Customer loans by currency 100% 80% Manufacturing Construction Hotels & restaurants Customer loans by reporting segment 1.6% 10.1% 1.2% 9.7% 1.2% 9.3% 1.3% 8.8% 1.2% 8.7% 100% 19.6% 19.4% 19.1% 19.3% 19.5% 80% 66.7% 67.7% 68.8% 69.1% 20% 4.7% 8.1% 13.6% 4.5% 8.1% 13.4% 4.3% 7.9% 13.5% 4.3% 7.6% 13.8% 14.1% 13.6% 13.6% 13.3% 12.9% 40% 69.1% 4.9% 8.1% 13.4% 60% 60% 40% Real estate & housing Financial services Transport & comms Other 21.1% 21.3% 21.3% 21.5% 21.7% 28.2% 28.6% 28.6% 28.8% 29.0% Dec 12 Mar 13 Jun 13 20% 0% 0% Sep 12 EUR 1-9 2013 results presentation Dec 12 CEE-LCY Mar 13 CHF Jun 13 USD Sep 12 Sep 13 Austria - SBs Romania Ukraine Other 59 Austria - EBOe Hungary Serbia GCIB Slovakia Global Markets Sep 13 Czech Rep Croatia Corp Center 30 October 2013
  60. 60. Asset quality analysis – Loan book by segments Management attention Low risk in EUR million Sep 13 Dec 12 Sep 13 Substandard Dec 12 Sep 13 Non-performing Dec 12 Total loan book Risk provisions Sep 13 Sep 13 Sep 13 Dec 12 9.6% 9.5% 65,596 65,738 2,199 2,251 60.7% 61.8% 5.5% 5.5% 1,058 28,096 28,052 681 696 66.5% 65.7% 3.6% 3.8% 2,585 37,499 37,687 1,518 1,556 58.4% 60.2% 6.9% 6.9% 7,211 7,123 46,743 47,834 4,623 4,429 64.1% 62.2% 15.4% 14.9% 528 859 956 17,890 17,891 690 690 80.3% 72.2% 4.8% 5.3% 448 605 3,097 3,021 9,901 10,682 1,915 1,771 61.9% 58.6% 31.3% 28.3% 196 193 382 437 6,832 6,598 352 369 92.1% 84.3% 5.6% 6.6% 1,459 279 345 1,538 1,572 5,617 6,185 973 1,008 63.2% 64.1% 27.4% 25.4% 970 1,068 327 399 1,256 1,069 5,927 5,909 631 534 50.2% 50.0% 21.2% 18.1% 397 93 90 8 14 79 68 575 569 63 58 80.5% 84.1% 13.7% 12.0% 0 0 0 0 0 0 0 0 0 0 0 0.0% 0.0% na 11,424 12,557 2,681 3,261 954 781 1,613 1,330 16,672 17,928 1,013 893 62.8% 67.2% 9.7% 7.4% 91 69 24 7 2 0 0 0 117 77 1 0 >100.0% >100.0% 0.0% 0.0% 2 365 350 1 0 31.7% >100.0% 0.8% 0.5% 12,098 129,492 131,928 7,837 7,574 63.0% 9.6% 9.2% 3,180 10,832 53,024 52,803 7,745 8,197 1,204 1,095 3,622 3,643 EB Oesterreich 24,770 24,607 1,999 2,182 303 204 1,025 Savings Banks 28,254 28,196 5,747 6,014 901 891 2,597 30,894 30,368 6,926 8,258 1,712 2,085 14,535 13,797 2,043 2,610 453 Romania 4,423 4,856 1,933 2,200 Slovakia 5,434 5,137 820 831 Hungary 2,734 2,809 1,066 Croatia 3,373 3,373 395 0 Ukraine GCIB Group Markets Corporate Center Total Group 1-9 2013 results presentation Dec 12 62.1% 2,916 Serbia NPL ratio Sep 13 63.0% 16,455 Czech Republic Dec 12 6,681 14,671 CEE Sep 13 6,822 83,171 Austria NPL coverage Dec 12 10,766 112,338 113,573 83,918 Retail & SME Dec 12 222 229 115 102 25 17 3 95,655 96,027 17,492 19,825 3,897 3,978 12,448 60 62.6% nm 30 October 2013
  61. 61. Asset quality analysis – Loan book by region (country of origination) Low risk in EUR million Core market Austria Croatia Romania Serbia Slovakia Slovenia Czech Republic Hungary Ukraine Other EU Other industrialised countries Emerging markets Southeastern Europe / CIS Asia Latin America Middle East / Africa Total Share of total 1-9 2013 results presentation Sep 13 Dec 12 Management attention Sep 13 Dec 12 Substandard Sep 13 Dec 12 Non-performing Sep 13 Dec 12 89,790 53,235 4,191 5,201 647 6,112 741 16,503 3,161 0 3,766 707 1,392 1,028 180 46 137 95,655 90,219 53,528 4,186 5,586 669 5,851 938 16,031 3,431 0 4,012 533 1,263 892 180 82 110 96,027 16,355 7,107 1,464 2,353 194 1,015 307 2,591 1,325 0 571 77 490 466 10 2 11 17,492 18,191 7,479 1,661 2,692 186 1,045 230 3,190 1,708 0 939 130 564 539 10 3 12 19,825 3,554 1,043 457 710 43 215 136 595 355 0 230 31 82 82 0 0 0 3,897 3,807 949 452 958 47 216 124 650 412 0 72 17 83 81 1 1 1 3,978 11,645 3,104 1,483 3,450 121 440 269 1,004 1,775 0 474 87 242 216 19 0 6 12,448 11,258 3,176 1,274 3,280 78 486 221 1,030 1,715 0 540 84 216 181 24 5 6 12,098 73.9% 72.8% 13.5% 15.0% 3.0% 3.0% 9.6% 9.2% 61 Total loan book Sep 13 Share of total 93.7% 121,344 64,489 49.8% 7,595 5.9% 9.0% 11,713 1,004 0.8% 7,782 6.0% 1,452 1.1% 20,693 16.0% 5.1% 6,616 0.0% 0 5,041 3.9% 0.7% 902 2,205 1.7% 1,792 1.4% 210 0.2% 48 0.0% 0.1% 155 129,492 100.0% 100.0% Dec 12 Share of total 123,475 93.6% 65,131 49.4% 7,572 5.7% 12,515 9.5% 0.7% 980 7,598 5.8% 1,513 1.1% 15.8% 20,901 7,265 5.5% 0.0% 0 5,562 4.2% 764 0.6% 2,126 1.6% 1,692 1.3% 214 0.2% 90 0.1% 0.1% 129 100.0% 131,928 100.0% 30 October 2013
  62. 62. Asset quality analysis – Total exposure by region (country of origination) Low risk Management attention Substandard Non-performing in EUR million Sep 13 Dec 12 Core market Austria Croatia Romania Serbia Slovakia Slovenia Czech Republic Ukraine Hungary Other EU Other industrialised countries Emerging markets Southeastern Europe / CIS Asia Latin America Middle East / Africa Total 144,805 75,370 6,299 10,998 756 13,338 1,037 29,590 0 7,417 25,119 2,234 2,495 1,516 566 49 364 174,654 145,789 75,642 6,147 10,678 805 13,107 1,328 31,219 0 6,864 27,409 4,096 2,161 1,322 510 86 243 179,455 18,715 7,973 1,593 2,784 368 1,107 337 3,194 0 1,358 746 84 599 538 10 17 34 20,145 20,790 8,419 1,808 3,113 276 1,176 267 3,961 0 1,770 1,202 140 702 634 10 19 38 22,833 4,315 1,625 494 730 44 260 151 652 0 359 272 33 96 88 0 0 8 4,716 4,564 1,534 470 993 49 232 127 742 0 417 112 19 90 87 1 1 1 4,785 12,024 3,331 1,509 3,513 121 471 279 1,016 0 1,784 502 140 251 223 19 3 6 12,917 11,661 3,423 1,295 3,346 79 502 228 1,063 0 1,726 559 143 232 187 24 8 13 12,595 82.2% 81.7% 9.5% 10.4% 2.2% 2.2% 6.1% 5.7% Share of total 1-9 2013 results presentation Sep 13 Dec 12 Sep 13 62 Dec 12 Sep 13 Dec 12 Total Exposure Sep 13 Share of total 179,860 84.7% 88,299 41.6% 9,895 4.7% 18,025 8.5% 1,289 0.6% 15,176 7.1% 1,804 0.8% 34,453 16.2% 0 0.0% 5.1% 10,919 12.5% 26,639 2,491 1.2% 3,441 1.6% 2,364 1.1% 596 0.3% 69 0.0% 412 0.2% 212,431 100.0% 100.0% Dec 12 Share of total 182,803 83.2% 89,017 40.5% 9,720 4.4% 18,129 8.3% 1,209 0.6% 15,017 6.8% 1,951 0.9% 36,984 16.8% 0 0.0% 4.9% 10,777 29,283 13.3% 4,398 2.0% 3,184 1.4% 2,230 1.0% 546 0.2% 114 0.1% 294 0.1% 219,668 100.0% 100.0% 30 October 2013
  63. 63. Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (30 June 2013: EUR 39.3 bn) (30 June 2013: EUR 39.3 bn) 15.6% 1.3% 1.0% 9.1% 30.8% 3.1% 4.7% 2.6% AT 2.9% CZ SK US DE HU RO IT GB 2.0% 18.5% 17.6% 14.1% 5.6% 3.2% 67.8% Other EUR CZK USD HUF RON Financial assets by issuer/product Financial assets by rating (30 June 2013: EUR 39.3 bn) (30 June 2013: EUR 39.3 bn) 3.5% 4.3% 0.3% 13.6% 0.3% 4.5% 33.5% 7.7% 13.9% 4.9% 73.4% GOVT Other BANK 1-9 2013 results presentation CORP STRUCT. FIN. FUND 39.6% AAA EQUITY 63 AA A BBB BB B CCC CC D NR 30 October 2013
  64. 64. Balance sheet (IFRS) drill-down – Trading assets as of 30 Sep 2013 − Increase of EUR 2.1 bn ytd mainly due to investments into sovereign bonds in EUR m CZ SK RO HU AT IT ES GR IE PT FR BE DE NL Other Total 1-9 2013 results presentation Sovereign 1,501 23.3% 341 5.3% 1,109 17.2% 39.6% 2,549 7.4% 474 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 5 0.1% 0 0.0% 20 0.3% 0 0.0% 440 6.8% 6,440 100.0% Banks 0 0.0% 0 0.0% 1.4% 4 1 0.3% 175 57.8% 5 1.7% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0.1% 0 70 23.1% 11 3.7% 36 12.0% 100.0% 303 64 Other 8 0 1 23 201 6 6 0 14 0 4 0 103 31 150 546 1.4% 0.0% 0.2% 4.2% 36.8% 1.0% 1.1% 0.0% 2.6% 0.0% 0.7% 0.0% 18.9% 5.6% 27.4% 100.0% Total Trading 1,509 20.7% 341 4.7% 1,114 15.3% 35.3% 2,573 850 11.7% 11 0.1% 6 0.1% 0 0.0% 14 0.2% 0 0.0% 9 0.1% 0 0.0% 193 2.6% 42 0.6% 626 8.6% 7,289 100.0% 30 October 2013
  65. 65. Balance sheet (IFRS) drill-down – Financial assets at fair value as of 30 Sep 2013 − Decline of EUR 141m ytd on reduction of sovereign bonds in EUR m CZ SK RO HU AT IT ES GR IE PT FR BE DE NL Other Total 1-9 2013 results presentation Sovereign 78 67.1% 27 23.3% 5 4.2% 0 0.0% 0 0.4% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 6 5.1% 117 100.0% Banks 24 19.7% 0 0.0% 0 0.0% 0 0.0% 27 22.2% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 52 42.4% 0 0.0% 19 15.7% 123 100.0% 65 Other 62 12 2 0 131 0 1 0 0 0 2 0 18 22 86 335 18.4% 3.5% 0.7% 0.0% 39.0% 0.1% 0.2% 0.0% 0.0% 0.0% 0.7% 0.0% 5.2% 6.6% 25.6% 100.0% Total FV 164 28.5% 39 6.8% 7 1.3% 0 0.0% 159 27.6% 0 0.0% 1 0.1% 0 0.0% 0 0.0% 0 0.0% 2 0.4% 0 0.0% 70 12.1% 22 3.9% 111 19.3% 575 100.0% 30 October 2013
  66. 66. Balance sheet (IFRS) drill-down – Financial assets available for sale as of 30 Sep 2013 − Ytd decline of EUR 1.4 bn driven by changed presentation of Czech pension fund in EUR m CZ SK RO HU AT IT ES GR IE PT FR BE DE NL Other Total 1-9 2013 results presentation Sovereign 1,696 13.3% 1,940 15.3% 1,039 8.2% 0 0.0% 5,754 45.3% 75 0.6% 4 0.0% 0 0.0% 25 0.2% 5 0.0% 61 0.5% 68 0.5% 539 4.2% 46 0.4% 1,459 11.5% 12,711 100.0% Banks 106 2.7% 31 0.8% 0 0.0% 0 0.0% 868 22.4% 121 3.1% 29 0.7% 0 0.0% 47 1.2% 0 0.0% 161 4.1% 5 0.1% 1,029 26.5% 347 8.9% 1,136 29.3% 3,879 100.0% 66 Other 28 0.7% 26 0.7% 5 0.1% 5 0.1% 2,299 58.7% 23 0.6% 34 0.9% 0 0.0% 1 0.0% 6 0.2% 13 0.3% 4 0.1% 104 2.7% 144 3.7% 1,226 31.3% 3,918 100.0% Total AFS 1,829 8.9% 1,996 9.7% 1,044 5.1% 5 0.0% 8,921 43.5% 219 1.1% 67 0.3% 0 0.0% 73 0.4% 11 0.1% 235 1.1% 77 0.4% 1,673 8.2% 536 2.6% 3,821 18.6% 20,508 100.0% 30 October 2013
  67. 67. Balance sheet (IFRS) drill-down – Financial assets held-to-maturity as of 30 Sep 2013 − Financial assets HTM declined by EUR 782 m ytd in EUR m CZ SK RO HU AT IT ES GR IE PT FR BE DE NL Other Total 1-9 2013 results presentation Sovereign 4,838 30.2% 3,625 22.7% 2,498 15.6% 1,239 7.7% 2,908 18.2% 0 0.0% 2 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 21 0.1% 0.0% 0 866 5.4% 15,996 100.0% Banks 195 13.5% 0 0.0% 0.2% 2 0.0% 0 412 28.4% 136 9.4% 53 3.7% 0 0.0% 0 0.0% 5 0.3% 139 9.6% 0 0.0% 145 10.0% 121 8.4% 240 16.6% 1,449 100.0% 67 Other 25 24 101 0 110 37 89 0 0 0 19 9 25 43 265 748 3.3% 3.2% 13.5% 0.0% 14.7% 5.0% 11.9% 0.0% 0.0% 0.0% 2.5% 1.2% 3.3% 5.8% 35.5% 100.0% Total HTM 5,059 27.8% 3,649 20.1% 2,601 14.3% 1,239 6.8% 3,430 18.9% 173 1.0% 144 0.8% 0 0.0% 0 0.0% 5 0.0% 158 0.9% 9 0.0% 190 1.0% 164 0.9% 1,372 7.5% 18,193 100.0% 30 October 2013
  68. 68. Drill-down on selected asset classes – Peripheral Europe exposure at manageable level Total net exposure of Erste Group (incl. savings banks) to selected European countries: in EUR million Dec 11 Greece Ireland Portugal Spain Italy Sum total 4.4 46.5 5.6 23.8 472.6 553.0 Sovereign Dec 12 Sep 13 0.1 73.8 3.2 12.7 99.5 189.3 0.2 63.2 4.9 16.0 111.9 196.2 Dec 11 Bank Dec 12 Sep 13 Dec 11 Other Dec12 Sep 13 57.9 204.4 94.0 282.2 806.8 1,445.2 0.1 29.0 47.7 248.6 411.4 736.8 0.0 17.2 13.9 166.3 454.5 651.9 7.6 78.2 13.0 425.6 582.0 1,106.4 5.1 36.3 10.0 253.0 655.7 960.1 2.6 27.2 8.6 215.0 541.5 794.9 Total net exposure Dec 11 Dec 12 Sep 13 69.9 329.1 112.6 731.6 1,861.4 3,104.6 5.3 139.1 60.9 514.3 1,166.6 1,886.2 2.7 107.6 27.4 397.3 1,107.9 1,643.0 Sovereign net exposure by country and portfolio: Dec 11 FV Dec 12 Sep 13 Dec 11 AfS Dec 12 Sep 13 -8.5 0.0 0.0 -19.9 399.9 364.3 0.0 0.0 -16.3 -22.4 -11.7 -49.9 0.0 0.0 -8.7 -11.1 -7.4 -27.2 10.3 31.8 5.6 38.7 70.9 157.3 0.1 59.1 3.2 11.0 99.5 172.9 0.2 63.2 4.9 18.0 111.9 198.2 in EUR million Greece Ireland Portugal Spain Italy Sum total At amortised cost Dec 11 Dec12 Sep 13 2.6 14.7 0.0 12.2 1.8 31.3 0.0 14.7 0.0 1.7 0.0 16.4 0.0 0.0 0.0 1.7 0.0 1.7 Total net exposure Dec 11 Dec 12 Sep 13 4.4 46.5 5.6 23.8 472.6 553.0 0.1 73.8 3.2 12.7 99.5 189.3 0.2 63.2 4.9 16.0 111.9 196.2 Bank net exposure by country and portfolio: Dec 11 FV Dec 12 Sep 13 Dec 11 AfS Dec 12 Sep 13 0.0 99.4 9.4 61.9 233.6 404.3 0.1 16.2 1.9 69.0 43.9 131.1 0.0 13.1 -3.5 31.5 47.3 88.4 0.0 92.0 29.7 64.5 180.6 366.8 0.0 4.7 15.8 33.8 149.5 203.8 0.0 1.0 2.2 32.4 126.5 162.1 in EUR million Greece Ireland Portugal Spain Italy Sum total 1-9 2013 results presentation 68 At amortised cost Dec 11 Dec12 Sep 13 57.9 13.0 54.9 155.8 392.6 674.2 0.0 8.1 30.0 145.8 218.0 401.9 0.0 3.1 15.2 102.4 280.8 401.4 Total net exposure Dec 11 Dec 12 Sep 13 57.9 204.4 94.0 282.2 806.8 1,445.2 0.1 29.0 47.7 248.6 411.4 736.8 0.0 17.2 13.9 166.3 454.5 651.9 30 October 2013
  69. 69. Off-balance sheet items – Exclusively related to customer business 2011 in EUR million 2012 Sep 13 Total 6,920 6,170 18,579 9,762 7,238 1,221 6,363 5,584 14,415 9,057 4,446 834 6,551 5,808 14,583 8,717 4,590 1,161 25,499 Guarantees and warranties of which: in relation to corporate business Undrawn lines, loan commitments, promissory notes of which: in relation to corporate business of which: in relation to retail business of which: in relation to sovereigns, municipalities 20,779 21,134 − Detail on guarantees & warranties: − approx. 59% is related to Austria − approx. 77% is EUR-based − approx. 86% is towards low risk and management attention category − Detail on undrawn lines and loan commitments: − approx. 55% is related to Austria − approx. 75% is EUR based − approx. 99% is towards low risk and management attention category 1-9 2013 results presentation 69 30 October 2013
  70. 70. Presentation topics − Business performance − BCR update − Credit risk − Funding − Capital − Outlook − Appendix − Segments − Asset quality − CEE local consolidated results − About Erste Group − Shareholder structure 1-9 2013 results presentation 70 30 October 2013
  71. 71. Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-9 13 1-9 12 Cost/income ratio Return on equity 41.7% 18.6% Dec 12 Erste Group stake Solvency ratio 42.3% 16.0% Sep 13 99.0% 17.5% Employees Branches Customers (in m) 10,409 651 5.3 11,014 658 5.3 Change Rate and margin environment 80% 23.7% 27.2% 19.2% 10.2% 20.0% 1-9 13 816.2 (101.3) 328.5 78.1 (517.5) (33.2) (14.0) (6.2) 5.2 555.6 (110.5) 445.1 0.0 445.1 (0.5) 445.6 25.7 1-9 12 896.1 (121.8) 338.8 64.7 (542.5) (75.8) 2.6 16.8 2.4 581.3 (121.7) 459.6 0.0 459.6 (1.7) 461.3 25.7 70.6% 71.7% 72.5% 8% 6% 20% 3.7% 3.7% 3.4% 3.4% 3.5% 0.6% 0.3% 0.3% 0.3% 0.3% Sep 12 40% (5.5%) (1.1%) 0.1% 23.8% 27.7% 19.3% 10.5% 20.2% in EUR million Net interest income Risk provisions for loans and advances Net fee and commission income Net trading result General administrative expenses Other operating result Result from financial instruments - FV Result from financial assets - AfS Result from financial assets - HtM Pre-tax profit/loss Taxes on income Post-tax profit Post-tax profit from discontinuing operations Net profit/loss for the period Attributable to non-controlling interests Attributable to owners of the parent EUR FX rate (ave) 69.4% 60% 16.0% Market share - retail loans Market share - retail deposits Market share - corporate loans Market share - corporate deposits Market share - total assets 70.1% Dec 12 Mar 13 Jun 13 Sep 13 4% 2% 0% 0% Loan/deposit ratio (eop) Net interest margin (ytd) in EUR million Loans and advances to credit institutions Loans and advances to customers Risk provisions for loans and advances Financial assets - at fair value through profit or loss Financial assets - available for sale Financial assets - held to maturity Other assets Total assets Interest-bearing assets Deposits by banks Customer deposits Debt securities in issue Other liabilities Total equity Attributable to non-controlling interests Attributable to owners of the parent EUR FX rate (eop) Change (8.9%) (16.8%) (3.1%) 20.8% (4.6%) (56.1%) na na >100.0% (4.4% ) (9.2%) (3.2%) na (3.2% ) (70.6%) (3.4% ) 1m LCY market rate (eop) Sep 13 2,349 19,352 (719) 200 2,113 5,666 7,704 36,665 30,474 1,578 26,694 1,243 3,389 3,762 1 3,761 25.7 Dec 12 2,539 19,009 (709) 280 2,595 7,072 4,986 35,772 32,379 1,723 27,382 1,405 1,635 3,627 5 3,622 25.7 Change (7.5%) 1.8% 1.4% (28.5%) (18.6%) (19.9%) 54.5% 2.5% (5.9% ) (8.5%) (2.5% ) (11.6%) >100.0% 3.7% (79.0%) 3.8% To eliminate currency effects, Q3 2013 exchange rates were used for P&L and BS conversion. Market share data is as of Sept 2013. Solvency ratio is preliminary. 1-9 2013 results presentation 71 30 October 2013
  72. 72. Key local entity data (IFRS, consolidated) – Banca Comerciala Romana (BCR) Key figures and ratios 1-9 13 1-9 12 Cost/income ratio Return on equity 39.4% na Dec 12 150% Erste Group stake Solvency ratio 37.5% 10.7% Sep 13 93.3% 13.4% 12.4% 100% Employees Branches Customers (in m) 7,083 562 3.2 8,289 623 3.5 Market share - retail loans Market share - retail deposits Market share - corporate loans Market share - corporate deposits Market share - total assets 18.0% 18.9% 22.3% 13.6% 18.9% 18.3% 20.4% 23.2% 14.1% 19.3% in EUR million Net interest income Risk provisions for loans and advances Net fee and commission income Net trading result General administrative expenses Other operating result Result from financial instruments - FV Result from financial assets - AfS Result from financial assets - HtM Pre-tax profit/loss Taxes on income Post-tax profit Post-tax profit from discontinuing operations Net profit/loss for the period Attributable to non-controlling interests Attributable to owners of the parent EUR FX rate (ave) 1-9 13 485.7 (371.0) 116.9 76.5 (254.9) (48.4) 0.2 0.5 0.0 5.4 123.0 128.4 0.0 128.4 1.3 127.1 4.4 1-9 12 485.3 (597.6) 108.2 89.2 (268.9) (31.3) 1.0 0.6 0.0 (213.6) 41.8 (171.8) 0.0 (171.8) (0.8) (171.0) 4.4 Change Rate and margin environment 140.8% 140.6% 138.2% 139.0% 131.1% 15% 12% 9% 5.5% 6.0% 4.5% Sep 12 (14.5%) (9.8%) (9.2%) 5.1% 4.6% 4.6% 4.9% 4.9% 4.9% 3.0% Dec 12 Mar 13 Jun 13 Sep 13 50% 0% 3% 0% Loan/deposit ratio (eop) 1m LCY market rate (eop) in EUR million Loans and advances to credit institutions Loans and advances to customers Risk provisions for loans and advances Financial assets - at fair value through profit or loss Financial assets - available for sale Financial assets - held to maturity Other assets Total assets Interest-bearing assets Deposits by banks Customer deposits Debt securities in issue Other liabilities Total equity Attributable to non-controlling interests Attributable to owners of the parent EUR FX rate (eop) Change 0.1% (37.9%) 8.1% (14.3%) (5.2%) 54.6% (84.2%) (10.0%) na na >100.0% na na na na na 6% Net interest margin (ytd) Sep 13 139 10,952 (2,053) 8 1,031 2,563 2,628 15,267 12,680 3,915 8,351 289 1,059 1,654 6 1,648 4.5 Dec 12 81 11,933 (1,872) 10 969 2,411 2,893 16,425 13,683 4,907 8,488 302 1,203 1,525 4 1,520 4.5 Change 71.6% (8.2% ) 9.7% (24.6%) 6.4% 6.3% (9.2%) (7.1% ) (7.3% ) (20.2%) (1.6% ) (4.5%) (12.0%) 8.5% 33.8% 8.4% To eliminate currency effects, Q3 2013 exchange rates were used for P&L and BS conversion. Market share data is as of Sept 2013. Solvency ratio is preliminary. 1-9 2013 results presentation 72 30 October 2013
  73. 73. Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 1-9 13 1-9 12 Cost/income ratio Return on equity 41.4% 18.6% Dec 12 Erste Group stake Solvency ratio 42.0% 15.9% Sep 13 100% 23.5% Employees Branches Customers (in m) 4,215 296 2.4 4,185 297 2.4 Rate and margin environment Change 100% 82.0% 84.3% 81.1% 84.6% 84.6% 80% 8% 6% 21.2% 60% 0.7% (0.3%) (0.8%) 40% 4.1% 4.1% 4.0% 4.1% 4.2% 2% 20% Market share - retail loans Market share - retail deposits Market share - corporate loans Market share - corporate deposits Market share - total assets 25.9% 26.1% 11.3% 11.2% 19.9% in EUR million Net interest income Risk provisions for loans and advances Net fee and commission income Net trading result General administrative expenses Other operating result Result from financial instruments - FV Result from financial assets - AfS Result from financial assets - HtM Pre-tax profit/loss Taxes on income Post-tax profit Post-tax profit from discontinuing operations Net profit/loss for the period Attributable to non-controlling interests Attributable to owners of the parent 1-9 13 339.1 (34.2) 86.9 9.1 (182.9) (34.1) (1.2) 0.8 0.0 183.4 (39.9) 143.6 0.0 143.6 0.6 142.9 1-9 12 337.6 (47.7) 88.3 14.6 (182.3) (24.2) 0.6 1.7 0.6 189.2 (37.6) 151.7 0.0 151.7 0.2 151.5 0.1% 0.1% 0.1% 0.1% 0.1% Sep 12 26.5% 25.7% 10.9% 9.7% 20.2% Dec 12 Mar 13 Jun 13 Sep 13 0% 0% Loan/deposit ratio (eop) Net interest margin (ytd) in EUR million Loans and advances to credit institutions Loans and advances to customers Risk provisions for loans and advances Financial assets - at fair value through profit or loss Financial assets - available for sale Financial assets - held to maturity Other assets Total assets Interest-bearing assets Deposits by banks Customer deposits Debt securities in issue Other liabilities Total equity Attributable to non-controlling interests Attributable to owners of the parent Change 0.5% (28.3%) (1.5%) (37.7%) 0.3% 41.1% na (54.5%) (100.0%) (3.1% ) 6.2% (5.3%) na (5.3% ) >100.0% (5.7% ) 4% 1m EURIBOR (eop) Sep 13 39 7,334 (356) 31 922 2,776 830 11,577 10,771 626 8,673 599 439 1,240 3 1,237 Dec 12 290 7,093 (379) 31 1,358 2,443 941 11,777 10,861 1,148 8,413 537 475 1,205 3 1,202 Change (86.4%) 3.4% (5.9%) 1.0% (32.1%) 13.6% (11.8%) (1.7% ) (0.8% ) (45.5%) 3.1% 11.6% (7.6%) 2.9% 23.2% 2.9% Market share data is as of September 2013. Solvency ratio is preliminary. 1-9 2013 results presentation 73 30 October 2013
  74. 74. Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-9 13 1-9 12 Cost/income ratio Return on equity 37.2% na Dec 12 Erste Group stake Solvency ratio 40.1% na Sep 13 100% 10.4% Employees Branches Customers (in m) 2,822 136 0.9 2,690 141 0.9 Change Rate and margin environment 180% 12% 146.1% 138.2% 127.7% 127.6% 127.3% 11.7% Market share - retail loans Market share - retail deposits Market share - corporate loans Market share - corporate deposits Market share - total assets 15.6% 7.7% 7.1% 6.2% 8.1% 1-9 13 236.5 (160.6) 92.1 0.2 (131.9) (108.2) 0.0 0.0 (0.2) (72.1) (11.3) (83.3) 0.0 (83.3) 0.0 (83.3) 296.8 1-9 12 272.8 (144.6) 69.8 8.5 (130.6) (45.8) 0.0 (0.0) 0.0 30.1 (11.9) 18.2 0.0 18.2 0.0 18.2 296.8 8% 90% 4.9% (3.5%) 0.3% 6.6% 6% 4.3% 3.6% 4% 3.6% 3.7% 3.8% 2% Mar 13 Jun 13 Sep 13 5.8% 5.0% 3.9% 3.8% Sep 12 14.3% 8.3% 7.6% 6.5% 8.8% in EUR million Net interest income Risk provisions for loans and advances Net fee and commission income Net trading result General administrative expenses Other operating result Result from financial instruments - FV Result from financial assets - AfS Result from financial assets - HtM Pre-tax profit/loss Taxes on income Post-tax profit Post-tax profit from discontinuing operations Net profit/loss for the period Attributable to non-controlling interests Attributable to owners of the parent EUR FX rate (ave) 10% Dec 12 0% 0% Loan/deposit ratio (eop) Net interest margin (ytd) in EUR million Loans and advances to credit institutions Loans and advances to customers Risk provisions for loans and advances Financial assets - at fair value through profit or loss Financial assets - available for sale Financial assets - held to maturity Other assets Total assets Interest-bearing assets Deposits by banks Customer deposits Debt securities in issue Other liabilities Total equity Attributable to non-controlling interests Attributable to owners of the parent EUR FX rate (eop) Change (13.3%) 11.0% 32.0% (97.5%) 1.0% >100.0% na na na na (5.2%) na na na na na 1m LCY market rate (eop) Sep 13 519 5,803 (977) 0 3 1,298 1,823 8,469 7,980 2,878 4,558 22 395 616 0 616 298.2 Dec 12 429 6,304 (993) 0 690 1,179 1,743 9,352 8,528 3,677 4,562 5 401 706 0 706 298.2 Change 21.1% (7.9% ) (1.6%) na (99.5%) 10.1% 4.6% (9.4% ) (6.4% ) (21.7%) (0.1% ) >100.0% (1.5%) (12.7% ) na (12.7% ) To eliminate currency effects, Q3 2013 exchange rates were used for P&L and BS conversion. Market share data is as of Sept 2013. Solvency ratio is preliminary. 1-9 2013 results presentation 74 30 October 2013

×