erste group investor presentation q1 2014 results...30 april 2014 erste group investor presentation...

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Stabilising loan volume, continued cost discipline Andreas Treichl, CEO Erste Group Gernot Mittendorfer, CFO Erste Group Andreas Gottschling, CRO Erste Group

30 April 2014

Erste Group investor presentation Q1 2014 results

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Disclaimer – Cautionary note regarding forward-looking statements

2

• 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.

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Presentation topics

3

• Executive summary • Operating environment • Assets and liabilities • Business performance • Outlook • Appendix

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Executive summary – Group income statement performance

QoQ net profit reconciliation (EUR m)

YoY net profit reconciliation (EUR m)

4

• Significant improvement in other result due to non-recurrence of one-offs (goodwill write-downs)

• Decline in risk costs due to lower provisions in the large corporate and commercial real estate business, and at the savings banks

• Lower tax charge due to reversal of YTD deferred tax assets and no creation of new deferred tax assets in Q4 13

• Decline in operating income driven by NII (CZK impact, lower margins outside the Austrian customer business) only partly offset by better trading and fee income

• Deterioration in other result driven by full recognition of Hungarian banking tax in Q1 14; subsequent quarters will benefit

• Positive contribution from minorities due to normalised provisioning at savings banks

1033348

Q1 14 Minorities Taxes on income

Other result

327

Risk costs

165

Operating expenses

8

Operating income

41

Q4 13

-370

5727 47

33 31

103

177

1-3 14 Minorities Taxes on income

Other result

Risk costs

8

Operating expenses

Operating income

1-3 13

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Executive summary – Key income statement data

Net interest income & margin

5

Operating result & cost/income ratio Cost of risk

Banking levies & income tax rate

Reported EPS & ROE

Cash EPS & cash ROE

G: ±2% G: -5%

758

-4.1%

1-3 14

727

1-3 13 Q1 14

364

1.14%

Q4 13

529

1.65%

-2.0%

1-3 14

364

1-3 13

372

Q1 14

727

57.0%

Q4 13

760

56.1%

Q1 14

1,124

2.62%

Q4 13

1,169

2.73%

64

Q1 14

100

Q4 13

72

1-3 14

100

41.6%

1-3 13

21.4%

1-3 14

0.24

3.6%

1-3 13

0.36

5.5%

Q1 14

0.24

3.6%

Q4 13

-0.91

-12.8%

1-3 14

0.27

4.1%

1-3 13

0.39

5.9%

Q1 14

0.27

4.1%

Q4 13

-0.17

-0.1%

1-3 14

1,124

2.62%

1-3 13

1,197

2.71%

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Executive summary – Group balance sheet performance

YTD total asset reconciliation (EUR m)

YTD total liability reconciliation (EUR m)

6

• Stabilisation of net customer loans in Q1 14 thanks to solid performance of AT, CZ and SK retail and SME business lines

• Slight increases in interbank lending as well as trading and financial assets following declines in previous quarters

• Increase in bank deposits more than offsets decline in customer deposits and in debt securities issued

• Decline in customer deposits mainly driven by final deconsolidation of Czech pension fund (EUR 1.8bn) and lower deposits in EBOe and Erste Bank Hungary

• Lower debt securities due to maturities of unsecured bonds

31/03/14

203,903

Other assets

298

Intangibles

33

Net loans

139

Loans to banks

1,585

Trading, financial assets

1,001

Cash

1,072

31/12/13

200,118

863

31/03/14

203,903

Equity

284

Other liabilities

Debt securities

2,081

Customer deposits

2,970

Bank deposits

7,121

Trading liabilities

568

31/12/13

200,118

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Executive summary – Key balance sheet data

Loan/deposit & loan/TA ratio

7

Net loans & credit RWA NPL ratio & NPL coverage ratio

Basel 3 (phased-in) capital ratios *

Regulatory (B3)* & tangible equity

Liquidity coverage & leverage ratio

-0.1%

Credit RWA

87.9 84.9

Net loans

119.8 119.9

31/03/14 31/12/13

NPL ratio

9.6% 9.6%

NPL coverage

62.6% 63.1%

Loans/total assets

58.8% 59.9%

Loan/deposit ratio

100.3% 98.0%

Tangible equity

9.1 8.9

CET1 (phased-in)

11.3 11.2

CET 1

11.1% 11.4%

Total capital

15.5% 16.3%

G: ±2%

* Dec 13 pursuant to Basel 2.5 LR (phased-in)

5.3% 5.3%

LCR

108.7% 106.6%

in EUR bn

in EUR bn

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Presentation topics

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Business environment – Ongoing macroeconomic stabilisation

Real GDP growth (in %)

9

Private consumption growth Consumer price inflation (ave, in %)

Fixed cap formation growth (in %)

Current account balance (% of GDP)

Gen gov balance (% of GDP)

Unemployment rate (eop, in %)

Public debt (% of GDP)

HR

0.3

-0.5

HU

1.4 1.5

RO

2.7 2.4

SK

1.5

0.5

CZ

0.6 0.4

AT

0.6 1.2

2015 2014

HR

0.8 0.0

HU

2.0 1.9

RO

3.3 3.0

SK

2.5 1.7

CZ

2.7 2.0

AT

1.9 1.7

0.7

HU

1.3

HR AT

3.4

1.2

2.7

1.2

2.4

SK

2.5

CZ RO

1.9 2.1 1.9 2.2

HU

7.1

18.0

AT

18.4

SK

9.9

HR

14.3

RO

10.4

14.5

CZ

7.1 7.5 7.2

4.9 4.9

HR HU RO AT

5.4

3.8 3.3

0.9

2.3

SK

3.0 2.0

CZ

2.6

-0.9

4.0

1.2

2.5

HR HU RO AT

-1.4

2.6 1.8

1.3 1.1

SK

4.7 4.1

CZ

-1.4

0.0

-1.2

2.4 2.6

HR HU RO AT

-2.8 -2.9

-3.0

-5.5 -4.8

SK

-2.6 -2.7

CZ

-2.0 -1.7

-2.8

-0.6 -1.5

68

79

39

57

45

73 7179

39

57

44

71

HR HU RO AT SK CZ

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Business environment – Interest rate environment still challenging

Austria

10

Czech Republic Romania

Slovakia

Hungary

Croatia

1-3 13 1-3 14

1.98%

0.30%

1.84%

0.21%

10YR GOV 3M Interbank

1-3 13 1-3 14

2.27%

0.37%

1.94%

0.50%

1-3 13 1-3 14

5.36%

2.66%

5.79%

5.47%

1-3 13 1-3 14

2.38%

0.30%

2.36%

0.21%

1-3 13 1-3 14

5.80%

2.82%

6.29%

5.42%

1-3 13 1-3 14

0.65%

1.10%

Q1 14

1.98%

0.30%

Q4 13

2.15%

0.24%

Q1 14

2.27%

0.37%

Q4 13

2.31%

0.41%

Q1 14

5.36%

2.66%

Q4 13

5.24%

2.56%

Q1 14

2.38%

0.30%

Q4 13

2.59%

0.24%

Q1 14

5.80%

2.82%

Q4 13

5.73%

3.34%

Q1 14

0.65%

Q4 13

1.12%

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Business environment – Limited currency volatility, despite CZK devaluation in November 2013

EUR/CZK

11

EUR/RON

EUR/HUF

EUR/HRK

1-3 13

+7.3%

25.6 27.4

1-3 14 Q4 13

+2.9%

26.7 27.4

Q1 14 31/12/13

+0.1%

27.4 27.4

31/03/14 1-3 13

+2.6%

4.39 4.50

1-3 14 Q4 13

+1.2%

4.45 4.50

Q1 14 31/12/13

-0.3%

4.47 4.46

31/03/14

1-3 13

+3.9%

296.5 307.9

1-3 14 Q4 13

+3.5%

297.4 307.9

Q1 14 31/12/13

+3.4%

297.0 307.2

31/03/14 1-3 13

+0.9%

7.58 7.65

1-3 14 Q4 13

+0.3%

7.63 7.65

Q1 14 31/12/13

+0.3%

7.63 7.65

31/03/14

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Business environment – Market shares: stability in AT*, CZ and SK, challenges in RO, HU

Gross retail loans

12

• RO: stabilisation following an 85% yoy increase in PI new business volumes

• HU: market share development is a function of legacy business

Gross corporate loans

• AT: higher volumes both in EBOe and the Savings banks

• RO: selective lending policy with focus on quality customers

• HU: portfolio concentration to preferred sectors; impact of municipality debt consolidation

Retail deposits

• RO: declining markets share mainly due to deposit repricing

• RS: market share increase due to well-respected brand

• HU: focus also on alternative saving products such as investment funds where EBH has market share of 16%

Corporate deposits

• RO: good quality large corporate inflow in Q1 2014

• HU: reviewing deposit repricing • RS: Q1 2014 mainly due to

short-term deposit inflow

23.5%

RS 3.4% 3.3%

HR 13.8% 13.7%

HU 15.5% 15.8%

RO 17.7% 18.2%

SK 26.0% 25.8% 26.6%

CZ 23.6% 23.7%

AT 19.0% 19.0%

17.8%

15.7%

13.8%

3.4%

28/02/14 31/12/13 31/03/13

RS 2.8% 2.8% 2.8%

HR 15.7% 15.9% 16.1%

HU 6.3% 6.6% 7.4%

RO 20.5% 20.8%

22.9%

SK 11.4% 11.1% 11.1%

CZ 19.4% 19.0% 19.2%

AT 17.1% 16.8%

RS 2.9% 2.8% 2.6%

HR 12.8% 12.8% 12.5%

HU 6.8% 7.0%

8.5%

RO 17.7% 18.1%

19.5%

SK 26.5% 26.5%

25.8%

CZ 26.6% 26.9% 27.5%

AT 18.3% 18.3%

9.9%

AT 20.4% 20.5%

RS 4.9% 4.6% 5.0%

HR 11.9% 12.2% 12.1%

HU 5.9% 5.8% 6.8%

RO 13.8%

12.8% 13.9%

SK 10.5%

9.6% 9.5%

CZ 10.1% 10.2%

* AT market shares not yet available.

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Presentation topics

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Assets and liabilities: YTD overview – Loan/deposit ratio balanced at 100.3%

Assets (EUR bn)

14

Assets (in %)

Liabilities & equity (EUR bn)

Liabilities & equity (in %)

31/03/14

203.9

9.1 2.4

119.8

10.0

52.3

10.4

31/12/13

200.1

8.8 2.4

119.9

8.4

51.3

9.3

Other assets Intangibles Net loans Loans to banks Trading, financial assets Cash

31/03/14

203.9

15.1 6.9

31.0

119.4

24.4 7.0

31/12/13

200.1

14.8 6.0

33.1

122.4

17.3 6.5

Equity Other liabilities Debt securities Customer deposits Bank deposits Trading liabilities

100%

31/03/14

4.5% 1.2%

58.8%

4.9%

25.6%

5.1%

31/12/13

4.4% 1.2%

59.9%

4.2%

25.6%

4.6% 100%

31/03/14

7.4% 3.4%

15.2%

58.6%

12.0% 3.5%

31/12/13

7.4% 3.0%

16.6%

61.2%

8.6% 3.2%

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Assets and liabilities: customer loans by country of risk – Stabilisation of net loans and performing loans in Q1 14

Net customer loans (EUR bn)

Performing loans (EUR bn)

15

Non-performing loans (EUR bn)

-0.1%

31/03/14

119.8

8.9

19.0

7.7

31/12/13

119.9

62.7

19.0

7.6 9.1 5.3

6.8 0.9

63.3

5.0 6.8

0.8 5.7 5.8 2.7

31/03/13

122.7

62.4

19.9

7.2 10.3 5.9

6.7 1.0

6.6 2.6 2.7

HU SK RO Other EU HR RS Other CZ AT

4.6

18.7

115.4

61.6

8.0

6.1

7.5

4.3

-0.2%

31/03/14

115.2

62.2

18.7

7.6 7.7

31/12/13

6.1 5.1

2.8 0.8

6.2 2.7 1.0 5.4

2.8

31/03/13

118.1

61.3

19.6

7.2 8.8 5.2

6.1 0.8

3.1

0.4

3.5

1.7

1.3 0.1

0.7 0.3

3.0

1.1 0.5

3.2

1.6

1.6 0.1

1.0

0.3

31/12/13

12.3

3.1

1.1 0.5

3.2

1.7

1.5 0.1

0.8 0.3

31/03/13

12.2 12.2

31/03/14

-0.5%

0.9

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Assets and liabilities: allowances for customer loans – Slight decline in allowances follows stabilisation of NPL volume

Quarterly development (EUR m)

16

Highlights • Stock of allowances for impairments

declined slightly ytd on the back of lower NPL stock vs year-end 2013

• QoQ improvement in new allocations driven by corporate, after extraordinarily high allocations in Q4 13

• New allocations almost evenly spread between retail and corporate, following no allocations in retail in Q4 13

• Lower level of use driven by corporate segment due to lower overall qoq NPL sales (EUR 86.2m vs EUR 329.5m)

• Releases flat qoq driven by strong increase in retail offset by decline in corporate

• Lower qoq interest income from impaired loans driven by corporate business

• Only minor FX impact in Q4 13, Q1 14

27

775

827725

380

506

249144

78

586

39

1,046

30/09/13

7,837 69

334

8

30/06/13

7,757 74

404

31/03/13 31/12/13

14

498

55 7,660

31/03/14

7,752

-1.2%

7,631

Exchange-rate and other changes (+/-) Interest income from impaired loans

Releases Use Allocations

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Assets and liabilities: financial and trading assets – LCR at comfortable 107% (YE 13: 109%)

By geography (EUR bn)

By debtor type

17

Liquidity buffer (EUR bn)

• Liquidity buffer is defined as unencumbered collateral plus cash

• Total liabilities are defined as total on balance sheet liabilities excluding total equity

47.0

12.3

10.4

6.3

4.1 3.5

2.1

31/03/13

+2.1%

31/03/14

45.8

12.1

8.2

6.0

5.3 3.9 2.2

8.1

31/12/13

44.8

12.6

8.6

6.0

4.6 3.1

2.1

7.8 8.4

AT CZ SK

RO HU DE Other

75.0%

100%

31/03/14

77.3%

12.1%

10.6%

31/12/13

75.1%

12.6%

12.3%

31/03/13

11.9%

13.2%

Banks Other

Sovereign

31/03/14 31/12/12

21.5%

31/12/13

20.7%

39.8 39.2 40.1

20.3%

31/12/11

34.6

17.8%

Liquidity buffer as % of total liabilities Liquidity buffer

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Assets and liabilities: intangibles – Intangibles reduced in size, currently at 20.9% of book value

Quarterly development of intangibles (EUR bn)

18

Highlights • Customer relationships are subject to regular

amortisation • Quarterly customer relationship amortisation

charge averages between EUR 15-20m and is booked in operating expenses of the Group Corporate Center

• Extraordinary goodwill writedowns amounted to EUR 383m in 2013

• BCR-related goodwill is carried in LCY, hence subject to currency volatility, while CZ and SK goodwill are carried in EUR

• No goodwill in Hungary • Regular impairment tests are carried out as

part of the annual auditing process at year-end

30/06/13

2.8

0.6

0.3

0.3

0.5

0.2

0.2

0.6

31/03/13

2.9

0.6

0.3

0.3

0.5

0.2

0.3

0.6

-1.3%

31/03/14

2.4

0.3

0.3

0.3

0.5

0.2 0.2

0.6

31/12/13

2.4

0.3

0.3

0.3

0.6

0.2 0.2

0.6

30/09/13

2.8

0.5

0.3

0.3

0.5

0.2 0.2

0.6

BCR goodwill

Brand (mainly BCR) Customer relationships (mainly BCR) CZ goodwill

SK goodwill Other goodwill Software

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Assets and liabilities: customer deposit funding – Decline in customer deposits driven by EUR 1.8bn Czech one-off

By customer type

By product type

19

Highlights • YTD decline driven mainly by:

• Final deconsolidation of Czech pension fund (EUR 1.8bn), one-off effect impacting retail

• Decline in EBOe due to successful deposit repricing with positive margin effect

• Continued yoy and qoq decline of Hungarian large corporate deposit base

3/31/14

119.4

61.3

57.1

0.6 0.4

31/12/13

122.4

65.1

56.0

0.9 0.5

31/03/13

123.1

68.2

52.9

1.4 0.6

Overnight deposits Term deposits Repurchase agreements FV deposits

-2.4%

31/03/14

119.4

83.4

22.8

7.8 5.0 0.4

31/12/13

122.4

87.8

23.5

4.9 5.8 0.5

31/03/13

123.1

86.7

27.0

3.0 5.9 0.6

Households Non-financial corporations Other financial corporations General governments FV deposits

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Assets and liabilities: debt vs interbank funding – Decline in deposits and issued debt offset by increase in interbank funding

Debt securities issued (EUR bn)

Interbank deposits (EUR bn)

20

-6.3%

31/03/14

31.0

0.3 2.1

7.6

1.6 0.4

13.7

0.4 1.2

3.8

31/12/13

33.1

0.3 2.1

7.4

1.9 0.8

15.5

0.4 1.2

3.6

31/03/13

34.5

0.3 2.1

8.5

2.4 0.1

16.4

0.0 1.2

3.5

Other Public sector CBs Mortgage CBs Other CDs, name cert’s Certificates of deposit Senior unsec. bonds Hybrid issues Suppl. capital Sub debt

+41.2%

31/03/14

24.4

4.1

16.9

3.4

31/12/13

17.3

2.7

10.3

4.3

31/03/13

21.4

2.6

12.5

6.2

Repurchase agreements Term deposits Overnight deposits

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Assets and liabilities: ST vs LT funding – Limited LT funding needs, solid ST funding collateral coverage

Maturity profile of debt (EUR bn)

Wholesale funding outflow (<1y) v collateral coverage

21

• Last government-guaranteed bond redeemed in February 2014 • Refinancing needs still modest in 2014 • Limited liquidity demand is covered by retail issues and private

placements • The average maturity of Q1 issues amounts to 8.2 years and

extends the current redemption profile

• Coverage ratio at a very reassuring level • The volume of unencumbered collateral constantly increases due

to investments exclusively to central bank eligible assets • Short term wholesale funding is quoted on a gross basis – net

short term wholesale funding (netting with short term interbank and central bank placements) actually decreased

37.0

31/12/13

139.4%

33.9

31/12/11

27.0

165.1%

31/12/12 31/03/14

156.6%

20.5

37.6

23.6 31.6

22.3

141.2%

31/12/10

27.9 24.0

116.3%

Collateral coverage Unencumbered collateral (post haircut) Wholesale funding outflow (<1y)

2023 2021 2017

1.5

2018

2.4

2016

3.5

2015 2020

2.4 2.7

2019

1.5

2.4

2014 2024 2025

0.2

2022

0.4 0.7

2.7

3.8

2026+

1.3

Capital exc Tier 1 Debt CEE subs

Senior unsec. bonds Covered bonds

Page

Assets and liabilities: capital position – Basel 3 implementation as of 31 March 2014

Basel 2.5/Basel 3 capital (EUR bn)

Risk-weighted assets (EUR bn)

22

Basel 2.5/Basel 3 capital ratios

• AT1 hybrids consumed by partial phase-out (20%) and deduction of intangibles from AT1 instead of CET1 during transitional period

• Increase in Tier 2 due IRB surplus for NPLs (switch to gross view)

• Further minor RWA adjustments are expected in the course of 2014

• Basel 3 induced RWA increase per 31 March 2014 is expected to be reduced by about EUR 1bn until year end

• Basel 3 CET1 ratio (final) equalled 10.4% at 31 March 2014

• Compared to year-end 2013 level of 10.8%, main drivers are implementation of gross view for IRB shortfall for performing loans and RWA uplift

31/03/14

15.9

11.3

0.0 4.5

31/12/13

16.0

11.2

0.4 4.2

30/09/13

15.7

10.8

0.4 4.3

30/06/13

16.8

11.9

0.4 4.2

31/03/13

16.7

11.8

0.4 4.2 0.3 0.0 0.2

0.3 0.2

CET1 AT1 Tier 2 Tier 3

31/03/14

102.2

87.9

11.0 3.3

31/12/13

97.9

84.9

10.2 2.9

30/09/13

99.0

86.6

9.3 3.0

30/06/13

100.9

87.3

10.1 3.5

31/03/13

105.1

90.1

11.2 3.7

Credit RWA Op risk Trading risk

31/03/14

15.5

%

11.1

%

11.1

%

31/12/13

16.3

%

11.8

%

11.4

%

30/09/13

15.8

%

11.2

%

10.9

%

30/06/13

16.6

%

12.2

%

11.8

%

31/03/13

15.9

%

11.6

%

11.2

%

Total capital Tier 1 CET1

Basel 2.5 Basel 3 Phased-in



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Presentation topics

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Business performance: performing loan stock & growth – Stabilisation in Q1 14 driven by Retail and SME in AT, SK, CZ

Business line view

Geographic view

24

• Stabilisation of performing loan stock in Q1 14 after significant decline in 2013, supported by Retail, SME and SBs segments

• Reallocation of about EUR 1.5bn of performing loans from SME to LC as per 1 Jan 2014 distorts yoy and qoq comparison, as does EUR 1.0bn shift from LC to OC as per 31 Dec 2013 (yoy only)

• Continued deleveraging in CRE qoq and yoy

• Continued qoq deleveraging in HU, RO and OA (CRE), partly offset by better performance in AT

0.5 0.5 0.5

HR 5.6 5.6 5.5

HU 3.7 4.0 4.5

SK 7.2 7.1 6.8

RS

7.0 7.4 8.4

CZ 17.7 17.6 18.2

AT/OA 10.2 10.6 12.4

AT/EBOe 27.2 27.0 26.8

RO 35.3 34.8

SME 18.8 20.2 20.7

Retail 43.2 43.1 43.9

Group 115.2 115.4 118.1

OC 1.6 1.7 0.8

CRE 7.6 8.0 9.4

LC 7.7 6.3 7.6

AT/SB 35.2

OC -8.2% 85.2%

CRE -4.7% -18.7%

LC 21.5% 0.6%

AT/SB -0.4% 1.3%

SME -7.0% -9.3%

Retail 0.3% -1.5%

Group -0.2% -2.4%

RS -6.7%

HU

HR 2.6%

-1.6%

0.6%

-5.4% -15.9%

SK 1.8% 5.8%

RO -5.1% -16.2%

CZ 0.5% -2.5%

AT/OA -3.5% -17.4%

AT/EBOe 0.7% 1.5%

YoY QoQ

in EUR bn in EUR bn

31/03/13

31/03/14 31/12/13

Page

Business performance: customer deposit stock & growth – Deposit decline overstated by EUR 1.8bn CZ one-off

Business line view

Geographic view

25

• EUR 3.0bn decline is overstated by EUR 1.8bn due to final deconsolidation of Czech pension fund (allocated to Retail)

• Shift from SME to LC distorts comparison

• Underlying trend in CZ stable (see left side explanation) • Decline in EBOe driven by Retail business line due to liability

repricing with positive margin effect • Decline in Hungary due to persistent LC deposit outflows; smaller,

but still significant decline in Retail, SME stable

0.6 0.6 0.6

HR 4.6 4.6 4.3

HU 3.7 4.1 4.8

SK 9.1 9.1 8.9

RS

8.4 8.4 8.5

CZ 24.7 26.5 27.2

AT/OA 4.9 4.4 5.0

AT/EBOe 28.7 30.0 30.1

RO

OC 0.0 0.0 0.0

CRE 1.0 1.2 1.3

LC 5.3 3.7 4.9

AT/SB 34.6 35.1 34.1

SME 10.4 12.3 12.2

Retail 62.6 64.9 64.6

Group 119.4 122.4 123.1

OC 131.5% 148.4%

CRE -16.1% -21.4%

LC 42.3% 8.6%

AT/SB -1.3% 1.6%

SME -15.6% -14.8%

Retail -3.6% -3.1%

Group -2.4% -2.9%

RS 1.4% 2.0%

HR -1.0% 5.8%

HU -9.5% -22.1%

SK 0.4% 2.1%

RO -0.1% -1.0%

CZ -6.7% -9.2%

AT/OA 11.9% -1.9%

AT/EBOe -4.2% -4.7%

QoQ YoY

in EUR bn in EUR bn

31/03/14 31/12/13 31/03/13

Page

Business performance: NII and NIM – NII down yoy and qoq on lower volumes, lower margins and CZK effect

Business line view

Geographic view

26

• Group NII down qoq and yoy due to lower volumes, lower margins, persistently low or falling (HU, RO) interest rates & FX effects (CZ)

• Retail: YOY & qoq decline on lower volumes and margins in BCR, shrinking business in EBH and FX impact in CZ

• SME, LC: QOQ NII impacted by reallocation from SME to LC • CRE: Deconsolidation of leasing companies contributed to overall

deleveraging impact

• AT: YOY improvement in EBOe due to deposit repricing; SBs up yoy and qoq mainly due to derivatives results

• CZ: Decline in NII mainly due to FX effects, despite stable margins • RO: qoq and yoy decline driven by significant volume decline,

especially in SME business, compounded by margin compression • OA: QOQ decline mainly due to lower treasury income and

deconsolidation of leasing companies from Immorent

145

8

60

75

104

162

257

103

135

8

61

70

107

142

241

108

145

8

63

70

108

136

233

99

RS

HR

HU

SK

RO

CZ

AT/OA

AT/EBOe

48

15

47

43

198

64

164

555

19

43

47

207

165

547

19

37

54

214

40

144

538

OC

CRE

LC

AT/SB

ALM&LCC

SME

Retail

Group 1.124

1.169 1.197

Q1 14 Q4 13 Q1 13

2.10% 2.03%

1.51% 1.57% 1.72% 1.76%

2.62% 2.47%

2.14% 1.72% 1.67% 1.57%

0.42% 0.48% 0.55%

2.54% 2.74% 2.71%

4.35% 4.37% 4.52%

2.62% 2.73% 2.71%

4.56% 4.82% 4.98%

3.11% 2.99% 3.01%

3.97% 3.68%

3.46% 4.00% 4.06%

3.83% 4.44% 4.61%

4.93% 3.18% 3.17% 3.16%

1.15% 1.29%

1.12% 1.53% 1.47% 1.38%

in EUR m in EUR m

Page

Business performance: operating income – Decline in NII weighs on operating income

Business line view

Geographic view

27

Highlights • Decline in qoq and yoy group operating

income driven by NII, partly offset by an improved net trading & FV result

• GCC: net trading result down on valuation effects and lower imputed NII on capital that is not allocated (free capital); offset by IG

• SME: qoq decline due to reallocation to LC • Retail: decline in NII driven by lower volumes

and margins, improvements in fee income in AT, RO, HU

• CRE: qoq and yoy decline mainly in NII due to deconsolidation of leasing companies and lower business volumes

• Other Austria driven by commercial real estate business (Immorent) and decline in treasury business

• CZ: positive developments in SME NII could not compensate overall FX effect and lower income from fees and in ALM&LCC

• RO: Lower volumes and margins in all major business lines weigh on NII, fee income improved in retail business

190

222

143

42

12

79

105

137

398

324

240

28

13

83

114

145

219

375

176

341

238

52

12

94

98

196

365

150

336

245

Other

RS

HR

HU

SK

RO

CZ

AT/OA

AT/SB

AT/EBOe

Group 1,691

1,732 1,748

118

235

-32

109

25

74

67

324

0

228

835

-42

83

100

30

69

80

341

-3

838

-18

54

110

24

46

79

336

30

207

824

IG

GCC

GM

OC

CRE

LC

AT/SB

ALM&LCC

SME

Retail

Group 1,691 1,732 1,748

Q1 14 Q4 13 Q1 13

in EUR m in EUR m

Page

Business performance: operating expenses – Improvements mainly on lower personnel expenses

Business line view

Geographic view

28

Highlights • Group operating expenses declined due to

lower average headcount (yoy) and seasonally higher costs in Q4 13 (qoq)

• Retail: yoy decline mainly on reduced personnel expenses, CZ (FX effect) and RO (restructuring)

• SME: lower personnel expenses and positive effect from reallocation to LC

• CRE: improvements on deconsolidation of leasing entities and lower depreciation on operating lease and investment properties

• GCC: significant yoy, qoq increase due to change in cost reimbursement methodology; fully offset in other result; bottom line neutral

• CZ: improvement in personnel expenses, supported by FX effect

• OA: seasonally higher costs in Q4 13, plus leasing deconsolidation effect, which increased costs in HR

• RO: decline in personnel expenses, full effect of restructuring measures visible

• Other: mirrors GCC and IG developments

94

154

238

93

9

34

46

59

185

89

227

153

54

9

38

45

66

92

171

104

103

9

43

42

65

81

165

78

231

145

Other

RS

HR

HU

SK

RO

CZ

AT/OA

AT/SB

AT/EBOe

Group 963 972 990

48

238

36

52

-85

175

46

12

34

16

227

27

74

465

-118

168

15

19

69

445

-91

190

45

12

24

19

231

31

68

434

IG

GCC

GM

OC

CRE

LC

AT/SB

ALM&LCC

SME

Retail

Group 963 972 990

Q1 14 Q4 13 Q1 13

in EUR m in EUR m

Page

Business performance: operating result and CIR – Lower operating income only partly offset by lower costs

Business line view

Geographic view

29

101

127

105

78

50

-51

3

44

60

78

128

212

96

87

3

45

68

79

204

72

103

84

-26-51

2

56

115

200

72

100

Other

RS

HR

HU

SK

RO

CZ

AT/OA

AT/SB

AT/EBOe

Group 727

760 758

72

392

166

105

54

-65

14

40

51

96

-27

154

370

77

-85

48

15

33

61

103

-51

73

-136

65

11

22

59

-2

138

391

IG

GCC

GM

OC

CRE

LC

AT/SB

ALM&LCC

SME

Retail

Group 727 760 758

Q1 14 Q4 13 Q1 13

81.2% 73.4% 76.1%

46.4% 45.6% 43.7% 43.0% 39.9% 43.5% 45.5% 45.7% 43.0% 41.1% 42.0% 42.5% 45.1% 45.5% 46.6% 52.1%

59.2% 46.6%

68.8% 69.8% 70.3%

59.3% 64.6% 63.9%

57.0% 56.1% 56.6%

40.5% 52.1%

38.7% 51.6%

48.7% 46.7%

51.4% 51.9%

46.3% 24.7% 23.1% 23.2%

68.8% 69.8% 70.3%

33.1% 29.4% 32.3%

52.6% 53.2% 55.7% 57.0% 56.1% 56.6%

in EUR m in EUR m

Page

Business performance: risk costs (abs/rel) – Lower risk costs mainly in SME and commercial real estate

Business line view

Geographic view

30

• Decline in group risk costs driven by lower provisioning requirements in CRE, SME and the savings banks (qoq), CRE (yoy)

• CRE: normalisation following exceptionally high provision in 2013 • SME & LC: impacted by reallocation from SME to LC • AT/SB: volatile risk cost distribution in 2013 followed by return to

normalised provisioning

• EBOe: release of risk costs in Q1 13, overall decline qoq due to lower provisioning requirements at subsidiaries

• Other Austria driven by improved risk costs in CRE • RO: different developments in retail and SME (both improved) and

LC (higher risk costs in work out portfolio) • HU: improvement in retail and SME, higher risk costs in CRE • HR: higher risk costs in CRE yoy to increase coverage

37

115

2

31

58

14

104

-4

3

44

46

18

108

27

137

32

3

40

45

13

110

36

51

21

RS

HR

HU

SK

RO

CZ

AT/OA

AT/EBOe 529

118

121

364

119

-4

103

32

13

96

132

372

-4

111

71

109

-4

60

88

48

59

OC

CRE

LC

AT/SB

SME

Retail

Group

-1.36% -1.17% -1.35%

2.37% 4.18%

3.65% 4.14%

3.74% 1.67%

0.49% 1.11%

0.14% 0.98%

1.89% 1.48%

1.02% 1.01% 1.12% 1.14%

1.65% 1.13%

1.93% 1.89%

1.35% 2.33% 2.62%

1.90% 3.37% 3.24%

3.80% 0.67% 0.95% 0.79%

4.29% 4.03% 3.93%

0.77% 0.58% 0.77%

1.64% 4.32%

3.13% 0.30% 0.45%

-0.06%

Q1 14 Q4 13 Q1 13

in EUR m in EUR m

Page

Business performance: non-performing loans and NPL ratio – Stable NPL volume, stable NPL ratio

Business line view

Geographic view

31

• Continued stabilisation of group NPL volume and group NPL ratio on supportive trends in RO, HU and commercial real estate

• NPL sales amounted to EUR 86.2m in Q1 14 • Retail: EUR 39m • Corporate: EUR 47.2m

• Reallocation of about EUR 800m from SME to LC is key reason for rising NPL ratio in LC and decline in SME; underlying trends stable

• NPL sales mainly in Hungary (EUR 71.6m), leading to NPL decline in same amount; NPL ratio rose due to declining overall volume

• Minor sales in CZ, SK, RO • QoQ deterioration in Serbia driven by Retail and LC business lines

738699RS

HR 1,212 1,179 1,160

HU 1,354 1,421 1,528

SK 405 407 405

RO 3,047 3,052

3,302

CZ 849 850 1,004

AT/OA 1,688 1,638

1,188

AT/EBOe 986 1,070 1,011

40OC

143 126

CRE 2,128 2,146

1,912

LC 1,303

535 694

AT/SB 2,557 2,571 2,561

SME 2,657

3,413 3,394

Retail 3,410 3,466 3,610

Group 12,238 12,296 12,232

6.8% 4.5%

21.1% 16.9%

7.8% 8.4%

6.8% 6.9%

14.4% 14.1%

7.4% 7.6%

9.6% 9.4%

9.6%

7.3%

12.4%

6.8%

14.5%

21.8%

8.3% 15.3%

12.7%

17.4% 17.5%

26.4% 25.5%

5.4% 5.6%

29.2% 28.3%

4.6% 5.2%

13.4% 8.8%

3.8% 3.6%

3.5%

14.2%

4.6%

30.3%

5.3%

26.6%

17.7%

17.4%

31/12/13 31/03/13

31/03/14

in EUR m in EUR m

Page

Business performance: allowances for loans and NPL coverage – NPL coverage remains comfortably above 60%-target

Business line view

Geographic view

32

• Overall stable group coverage ratio over the past quarters following significant provisioning

• Decline in LC coverage driven by reallocation from SME, which has lower coverage levels

• Decline in SME driven by charge-off of seasoned and highly provisioned NPLs, mainly related to Romania

• Continued increase in coverage in HR • OA coverage decline reflects shift from SME, booked in the

respective geographic segments, to holding business (LC), which is part of OA

• For explanation of RO coverage decline see left

596674RS

HR 675 635 586

HU 841 884 971

SK 354 352 361

RO 1,895

2,043 1,975

CZ 685 667 725

AT/OA 847 868

744

AT/EBOe 673 682 677

197373

OC

CRE 1,177 1,210

1,024

LC 864

415 489

AT/SB 1,572 1,551 1,533

SME 1,590

2,124 2,066

Retail 2,363 2,361 2,493

Group 7,660 7,753

7,632

58.1% 46.1%

56.4% 53.6%

77.7% 70.4%

60.3% 59.9%

62.2% 60.9%

68.1% 69.1%

63.1% 62.4%

62.6%

69.3%

59.8%

61.5%

66.3%

55.3%

50.8% 76.6% 80.8%

53.9% 50.5%

62.2% 63.6%

86.4% 89.3%

66.9% 59.8%

78.4% 72.2%

53.0% 62.6%

63.7% 67.0%

68.2%

50.2%

80.7%

62.2%

87.4%

62.1%

55.6%

74.8%

31/12/13 31/03/13

31/03/14

in EUR m in EUR bn

Page

Business performance: other result – Q1 14 impacted by full recognition of Hungarian banking tax

Business line view

Geographic view

33

Highlights • QOQ rise in group other result due to one-off

goodwill write-downs of EUR 330.8m in Q4 13; yoy decline due to full recognition of 2014 HU banking tax (EUR 47.9m) in Q1 14

• Hungarian banking tax impacts ALM & LCC business line and Hungary segment

• GCC: yoy improvement due to change in cost reimbursement methodology; fully offset in opex; bottom line neutral, also benefitted from lower Austrian banking tax

• LC: lower provisions for commitments and guarantees in Q1 14 (esp. BCR)

• SBs driven by selling gains in Q4 13

• Volatility in Other segment mirrors developments in GCC and IG elimination

• Improvement in EBOe qoq on impairments of participations in Q4 13

• CZ benefitted from positive one-off effect of EUR 8.1m in Q1 13

• RO improvements due to lower provisions for commitments/guarantees

8

-21

0

0

-22

-15

-19

16

-7

-5

-4

-76

0

-10

-26

-7

-16

5

7

-22

-13

0

0

-62

-11

-7

7

-8

-19

-9

Other -389

RS

HR

HU

SK

RO

CZ

AT/OA

AT/SB

AT/EBOe

Group -124

-450

7

-55

31

-1

2

-10

-7

-5

-16

-2

-12

-76

-78

-2

-5

-14

8

0

-15

-22

-73

59

0

2

-12

-2

-19

-60

1

-19

IG

GCC -330

GM

OC

CRE

LC

AT/SB

ALM&LCC

SME

Retail

Group -124

-450

Q1 14 Q4 13 Q1 13

in EUR m in EUR m

Page

Business performance: income tax and net result – Income tax rate in line with expectations at 41.6%, ROE at 3.6%

Net result by business line

Net result by geography

34

Highlights • Group income tax rate almost doubled yoy to

guided level of about 40%, due to non-creation of deferred taxes (DTA) in 2014

• QOQ decline in income tax charge due to limited recognition of DTAs in 2013

• QOQ improvement in net result driven by significantly lower one-offs (goodwill, taxes), and substantially lower risk costs

• YOY net result deterioration driven by lower operating contribution, full recognition of 2014 Hungarian banking tax in Q1 and higher tax charge

• Return on equity at 3.6% in Q1 14, following -12.8% in Q4 13 and 5.5% in Q1 13

• Cash return on equity at 4.1% in Q1 14, following -0.1% in Q4 13 and 5.9% in Q1 13

152

0

103

42

0

8

-23

40

0

-13

16

65

177

-6

-2

41

1

143

-64

3

17

0

6

-54

-8

136

-3

2

52

Other -69

-504 -70

RS

HR

HU

SK

RO

CZ

AT/OA

AT/SB

AT/EBOe

Group -370

21

62

51

0

51

15

-63

15

16

-33

48

169

177

0

40

-86

-22

3

-37

14

202

0

14

-53

-25

2

-63

193

103

IG

GCC -77

-506 -43

GM

OC

CRE

LC

AT/SB

ALM&LCC

SME

Retail

Group -370

Q1 14 Q4 13 Q1 13

in EUR m in EUR m

Page

Presentation topics

35


Page

Conclusion – Outlook • Erste Group expects a stable operating environment in its markets in Austria and CEE: while

economic growth is expected to average 1.9% (Erste Group Research) in 2014, interest rates are expected to remain persistently low or fall even further in certain geographies

• Erste Group aims to keep operating profit stable (± 2%) at about EUR 3.1 billion

• Net customer loans are set to remain stable (± 2%) at about EUR 120 billion

• In light of the upcoming ECB Asset Quality Review, Erste Group does not expect a decline in risk costs beyond 5% or to about EUR 1.7 billion

• Erste Group does not anticipate to recognise deferred tax assets in the Austrian tax group in 2014, which will result in a significantly elevated tax rate of about 40%

• The decline in banking taxes from EUR 311 million in 2013 to about EUR 270 million in 2014 should positively affect net profit

• Management proposes dividend of EUR 0.20 per share to AGM

36

Page

Presentation topics

37


Page

Additional information: new segmentation – Business line and geographic view

Retail

Erste Group – Business segments

SME ALM &

Local CC (ALM&LCC)

Savings Banks

(AT/SB)

Large Corporates

(LC)

Commercial Real Estate

(CRE)

Other Corporate

(OC)

Group Markets

(GM)

Group Corporate

Center (GCC)

Intragroup elimination

(IG)

Erste Group – Geographical segmentation

Austria Central and Eastern Europe Other

EBOe & Subsidiaries (AT/EBOe)

Savings Banks (AT/SB)

Other Austria

(AT/OA)

Czech Republic

(CZ)

Romania (RO)

Slovakia (SK)

Hungary (HU)

Croatia (HR)

Serbia (RS)

• Holding Business • Erste Group Immorent • Erste Asset Management

• Asset/Liability Management • Local Corporate Center

• Investment Banking • International Business

• Other Subsidiaries • Group bookings • Holding Corporate Center • Free Capital

• Holding ALM • Holding CC • Other Subsidiaries • Group bookings and

IG elimination • Free Capital

38

Page

Additional information: income statement – Quarterly view

39

in EUR m Q1 13 Q2 13 Q3 13 Q4 13 Q1 14Net interest income 1,196.7 1,143.3 1,175.9 1,169.2 1,123.9Net fee and commision income 447.4 446.8 449.5 462.8 452.1Dividend income 26.8 21.2 20.2 21.6 14.6Net trading and fair value result 30.7 72.8 80.7 34.6 50.4Net result from equity method investments 2.8 9.4 7.5 2.1 3.1Rental income from investment properties & other operating leases 43.7 41.5 46.6 41.6 46.5Personnel expenses -564.6 -561.9 -552.5 -553.4 -545.9Other administrative expenses -296.7 -280.3 -283.9 -285.1 -292.4Depreciation and amortisation -128.7 -128.1 -127.8 -133.1 -125.0Gains/losses from financial assets and liabilities not measured at fair value through profit or loss, net 22.0 -4.3 6.7 38.1 -3.7Net impairment loss on financial assets not measured at fair value through profit or loss -371.8 -412.6 -460.7 -529.4 -364.2Other operating result -98.2 -279.4 -142.6 -488.4 -119.8

Levies on banking activities -71.6 -113.1 -62.4 -63.9 -99.8Pre-tax result from continuing operations 310.1 68.4 219.6 -219.6 239.5Taxes on income -66.4 91.4 -56.0 -147.5 -99.7Post-tax result from continuing operations 243.7 159.8 163.5 -367.1 139.8Post-tax result from discontinued operations 0.0 0.0 0.0 0.0 0.0Net result for the period 243.7 159.8 163.5 -367.1 139.8

Net result attributable to non-controlling interests 67.0 34.2 35.2 3.2 36.5Net result attributable to owners of the parent 176.6 125.5 128.4 -370.3 103.3

Operating income 1,748.0 1,734.9 1,780.4 1,731.8 1,690.6Operating expenses -989.9 -970.3 -964.2 -971.7 -963.3Operating result 758.1 764.6 816.2 760.1 727.3

Page

Additional information: group balance sheet – Assets

40

in EUR m Mar 13 Jun 13 Sep 13 Dec 13 Mar 14Cash and cash balances 8,453 10,578 11,852 9,301 10,373Financial assets - held for trading 15,438 15,258 14,219 12,283 13,610

Derivatives 8,926 7,507 6,930 6,342 6,482Other trading assets 6,512 7,751 7,289 5,941 7,128

Financial assets - at fair value through profit or loss 657 642 575 529 512Financial assets - available for sale 21,269 20,492 20,569 20,678 20,956Financial assets - held to maturity 19,025 18,572 18,190 17,779 17,191Loans and receivables to credit institutions 10,896 9,150 7,757 8,377 9,962Loans and receivables to customers 122,703 121,999 121,656 119,945 119,805Derivatives - hedge accounting 2,503 1,850 1,788 1,944 2,212Changes in fair value of portfolio hedged items 0 0 0 0 0Property and equipment 2,410 2,364 2,402 2,320 2,330Investment properties 1,011 942 941 951 1,035Intangible assets 2,858 2,807 2,766 2,441 2,408Investments in associates and joint ventures 211 220 217 208 226Current tax assets 133 93 98 100 119Deferred tax assets 679 812 852 719 672Assets held for sale 618 95 106 75 82Other assets 4,345 4,558 4,096 2,471 2,409Total assets 213,211 210,431 208,084 200,118 203,903

Page

Additional information: group balance sheet – Liabilities and equity

41

in EUR m Mar 13 Jun 13 Sep 13 Dec 13 Mar 14Financial liabilities - held for trading 8,845 7,533 7,154 6,475 7,042

Derivatives 8,476 7,044 6,706 6,087 6,341Other trading liabilities 368 489 448 388 702

Financial liabilities - at fair value through profit or loss 2,553 2,418 2,377 2,339 2,275Deposits from banks 0 0 0 0 0Deposits from customers 592 527 498 460 449Debt securities issued 1,961 1,891 1,878 1,879 1,826Other financial liabilities 0 0 0 0 0

Financial liabilities measured at amortised cost 176,637 176,008 175,397 170,786 172,918Deposits from banks 21,359 22,004 23,163 17,299 24,421Deposits from customers 122,465 121,943 121,512 121,955 118,996Debt securities issued 32,509 31,762 30,425 31,245 29,217Other financial liabilities 303 299 298 286 285

Derivatives - hedge accounting 839 619 615 644 681Changes in fair value of portfolio hedged items 1,429 905 870 734 910Provisions 1,494 1,466 1,474 1,448 1,491Current tax liabilities 73 84 89 85 83Deferred tax liabilities 292 208 200 169 182Liabilities associated with assets held for sale 343 0 0 0 0Other liabilities 4,268 4,951 4,613 2,654 3,251Total equity 16,438 16,238 15,294 14,785 15,069

Equity attributable to non-controlling interests 3,536 3,465 3,501 3,466 3,542Equity attributable to owners of the parent 12,903 12,773 11,793 11,319 11,527

Total liabilities and equity 213,211 210,431 208,084 200,118 203,903

Page

Additional information: gross customer loans – Split by currency

Gross customers loans by currency (EUR bn)

Gross customers loans by currency in %

42

31/03/14

127.5

89.9

24.1

10.2 1.7 1.6

31/12/13

127.7

89.6

24.1

10.7 1.7 1.6

30/09/13

129.5

89.5

11.2 1.9 1.6

30/06/13

129.8

89.6

25.0

11.5 1.9 1.7

31/03/13

130.3

89.6

24.9

12.1 2.1 1.6

25.2

EUR CEE-LCY CHF Other USD

100%

31/03/14

70.5%

18.9%

8.0% 1.3% 1.2%

31/12/13

70.2%

18.9%

8.4% 1.3% 1.3%

30/09/13

69.1%

19.5%

8.7% 1.5% 1.2%

30/06/13

69.1%

19.3%

8.8% 1.5% 1.3%

31/03/13

68.8%

19.1%

9.3% 1.6% 1.2%

Page

Additional information: gross customer loans – Migration trends

Gross customers loans by risk category (EUR bn)

Gross customers loans by risk category in %

43

31/03/14

127.5

95.1

16.7

3.4 12.2

31/12/13

127.7

95.3

16.6

3.6 12.3

30/09/13

129.5

95.7

17.5

3.9 12.4

30/06/13

129.8

95.1

18.3

3.8 12.6

31/03/13

130.3

95.2

18.9

4.1 12.2

Low risk Management attention Substandard Non-performing

100%

31/03/14

74.6%

13.1%

2.7% 9.6%

31/12/13

74.6%

13.0%

2.8% 9.6%

30/09/13

73.9%

13.5%

3.0% 9.6%

30/06/13

73.3%

14.1%

2.9% 9.7%

31/03/13

73.0%

14.5%

3.1% 9.4%

Page

• Leading retail and corporate bank in 7 geographically connected countries

• Favourable mix of mature & emerging markets with low penetration rates

• Potential for cross selling and organic growth in CEE

Additional information: footprint – Customer banking in Austria and the eastern part of the EU

Erste Group footprint Highlights

44

Direct presence

Indirect presence

Customers : 0.9m

Hungary

Employees : 2,799

Branches: 135

Customers : 3.2m

Romania

Employees : 7,082

Branches: 563

Customers : 0.3m

Serbia

Employees : 964

Branches: 68

Customers : 1.0m

Croatia

Employees : 2,634

Branches: 153

Customers: 5.2m

Czech Republic

Employees : 10,425

Branches : 643

Customers: 2.4m

Slovakia

Employees : 4,216

Branches: 292

Customers: 3.4m

Austria

Employees: 15,791

Branches: 972

Page

Additional information: strategy – A real customer need is the reason for all business

Retail banking

Corporate banking

Capital markets

Public sector

Interbank business

Customer banking in Central and Eastern Europe

Eastern part of EU Focus on CEE, limited exposure to other Europe

Focus on local currency mortgage and consumer loans funded by local deposits FX loans only in EUR for clients with EUR income (or equivalent) and where funded by local FX deposits (RO, HR & RS) Savings products, asset management and pension products Potential future expansion into Poland

Focus on customer business, incl. customer-based trading activities In addition to core markets, presences in Poland, Turkey, Germany and London with institutional client focus and selected product mix Building debt and equity capital markets in CEE

Financing sovereigns and municipalities with focus on infrastructure development in core markets Any sovereign holdings are only held for market-making, liquidity or balance sheet management reasons

Large, local corporate and SME banking Advisory services, with focus on providing access to capital markets and corporate finance Real estate business that goes beyond financing Potential future expansion into Poland

Focus on banks that operate in the core markets Any bank exposure is only held for liquidity or balance sheet management reasons or to support client business

45

Page

Additional information: shareholder structure – Total number of shares: 429,800,000

By investor By region

46

* Including Sparkassen 1.2%, Sparkassen Beteiligungs GmbH & Co KG and other syndiate members

13.1%

7.1% 4.1%

1.5%

8.0%

4.0%

53.0%

9.1%

Erste Stiftung, direct Erste Stiftung, indirect * Austria Versicherungsverein Privatstiftung Employess Retail investors

Harbor International Fund CaixaBank

Institutional investors

2.8%

26.0%

43.0%

7.5%

20.7%

Continental Europe North America Austria UK & Ireland Other

Page

Investor Relations contacts

• Erste Group Bank AG, Graben 21, 1010 Vienna Fax : +43 (0)5 0100-13112 E-mail: [email protected] Internet: http://www.erstegroup.com/investorrelations

http://twitter.com/ErsteGroupIR http://www.slideshare.net/Erste_Group Erste Group IR App for iPad, iPhone and Android http://www.erstegroup.com/de/Investoren/IR_App

Reuters: ERST.VI Bloomberg: EBS AV Datastream: O:ERS ISIN: AT0000652011

• Investor Relations Thomas Sommerauer Tel: +43 (0)5 0100 17326 e-mail: [email protected] Peter Makray Tel: +43 (0)5 0100 16878 e-mail: [email protected] Simone Pilz Tel: +43 (0)5 0100 13036 e-mail: [email protected] Gerald Krames Tel: +43 (0)5 0100 12751 e-mail: [email protected]

47

erste group investor presentation q1 2014 results...30 april 2014 erste group investor presentation...

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