Erste Group Bank AG · VIE:EBS
Erste Group Bank — Shareholder Meeting (May 2013)
49 slides from Erste Group Bank's shareholder meeting presentation, May 16, 2013
Slide 1: 20th Annual General Meeting of Erste Group Bank AG
20th Annual General Meeting of Erste Group Bank AG 16 May 2013 Austria Center Vienna
Slide 2: Friedrich Rödler, Chairman of the supervisory board
Friedrich Rödler Chairman of the supervisory board
Slide 3: Report on the financial year 2012
First item on the agenda Report on the financial year 2012 AGM 2013 16 May 2013 3
Slide 4: Report on the financial year 2012 of Erste Group Bank AG (consolidated)
Report on the financial year 2012 of Erste Group Bank AG (consolidated) Andreas Treichl Chairman of the management board
Slide 5: Disclaimer – Cautionary note regarding forward-looking statements
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 CORREC
Slide 6: Operating environment – Economic decline due to weak domestic demand
Operating environment – Economic decline due to weak domestic demand Real GDP growth in Erste Group‘s core markets (in %) 4.4 2010 2012 3.2 2011 2013e 2.7 2.3 2.2 2.1 1.9 2.0 1.8 1.6 1.6 1.3 1.5 0.8 0.9 1.0 0.7 0.5 0.0 -0.3 -0.2 -0.8 -1.2 -1.1 13e euro zone avg.: -0.3% -1.7 -1.9 -2.0 -2.3 AT CZ RO S
Slide 7: Operating environment – Government debt is not a major issue in CEE
Operating environment – Government debt is not a major issue in CEE Public debt in Erste Group‘s core markets (in %, 2013e) 79.8 75.4 Euro zone avg. budget deficit: 2.8% 73.1 Euro zone avg. public debt: 95.1% 60.1 54.9 46.0 35.9 -2.3 -3.2 -2.8 -3.0 -3.0 -4.5 -5.0 AT CZ RO SK HU HR RS Gen gov balance
Slide 8: Operating income – Low demand lead to lower NII, fees
Operating income – Low demand lead to lower NII, fees 5-year operating income history in EUR m -3.3% 7,579 7,604 7,479 6,999 7,230 585 322 122 115 273 1,843 1,787 1,971 1,773 1,721 5,221 5,439 5,569 5,235 4,913 2008 2009 2010 2011 2012 Net trading result Net fee and commission income Net interest in
Slide 9: Operating expenses – Continued strict cost control, lower headcount
Operating expenses – Continued strict cost control, lower headcount 5-year operating expense history in EUR m -2.4% 4,002 3,851 3,807 3,817 3,757 375 378 387 375 367 1,313 1,202 1,166 1,152 1,106 2,314 2,228 2,264 2,324 2,284 2008 2009 2010 2011 2012 Depreciation and amortisation Personnel expenses
Slide 10: Operating profit – Stable despite low interest rate environment
Operating profit – Stable despite low interest rate environment 5-year operating profit history in EUR m 3,771 3,787 3,628 3,473 2,997 2008 2009 2010 2011 2012 AGM 2013 16 May 2013 10
Slide 11: Risk costs – Still elevated, but best performance since 2008
Risk costs – Still elevated, but best performance since 2008 5-year risk cost history in EUR m -12.7% 2,267 2,057 2,021 178 12 1,980 0 0 0 268 176 352 347 483 452 322 1,071 0 186 1,725 408 1,306 1,393 1,307 477 2008 2009 2010 2011 2012 Group Markets Retail & SME: Austria GCIB Retail & SME: CEE AGM 2
Slide 12: Post-provision operating profit – First significant rise since 2008
Post-provision operating profit – First significant rise since 2008 5-year post-provision profit history in EUR m 1,926 1,715 1,766 +9.7% 1,493 1,361 2008 2009 2010 2011 2012 AGM 2013 16 May 2013 12
Slide 13: Other result – Lower net negative one-offs in 2012
Other result – Lower net negative one-offs in 2012 Other result in EUR m (other operating result + results from financial assets) +991 -454 -442 -692 -1,349 -1,683 2008 2009 2010 2011 2012 AGM 2013 16 May 2013 13
Slide 14: Banking taxes – Banking taxes slow down capital formation
Banking taxes – Banking taxes slow down capital formation +32.0% 244 32 185 0 47 Slovakia 53 Hungary Austria 165 50 132 0 50 0 2010 2011 2012 In 2011, banking tax in Hungary was offset by the costs of repayment of foreign currency loans at non-market rates. AGM 2013 16 May 2013 14
Slide 15: Net profit – Reconciliation to underlying net profit
Net profit – Reconciliation to underlying net profit • 2012 positive extraordinary effects: EUR 380.1m (post-tax) • 2012 negative extraordinary effects: EUR 740.8m (post-tax) -360.7 56.8 323.3 456.2 844.2 187.4 Capital neutral 75.0 483.5 22.2 Underlying Hybrid Selling gains Goodwill Banking Selling
Slide 16: Dividend – Dividend of EUR 0.4 per share proposed to AGM
Dividend – Dividend of EUR 0.4 per share proposed to AGM 5-year dividend history in EUR 0.70 0.65 0.65 +0.40 0.40 0.00 2008 2009 2010 2011 2012 AGM 2013 16 May 2013 16
Slide 17: Balance sheet – Loan/deposit ratio improves to 107.2%
Balance sheet – Loan/deposit ratio improves to 107.2% 5-year loan and deposit history in EUR bn +3.5% -2.1% 132.3 134.8 131.9 126.2 128.8 123.1 117.0 118.9 109.3 112.0 2008 2009 2010 2011 2012 Loans and advances to customers Customer deposits AGM 2013 16 May 2013 17
Slide 18: Balance sheet – Asset quality stabilises, coverage up
Balance sheet – Asset quality stabilises, coverage up Asset quality summary in % 14 63.1 70 61.0 61.9 61.2 62.6 12 60 10 9.2 9.2 9.2 50 8.5 8.8 8 40 6 30 4 20 2 10 0 0 31/12/11 31/3/12 30/6/12 30/9/12 31/12/12 NPL ratio NPL coverage (excl. collateral) AGM 2013 16 May 2013 18
Slide 19: Capital – Best capital position since going public in 1997
Capital – Best capital position since going public in 1997 Core tier 1 capital Core tier 1 ratio in % in EUR m (total risk) 11.848 11.2% 11.019 10.681 10.276 9.2% 9.4% 8.3% 31/12/09 31/12/10 31/12/11 31/12/12 31/12/09 31/12/10 31/12/11 31/12/12 AGM 2013 16 May 2013 19
Slide 20: Share price performance – Erste Group share up 76.8% in 2012
Share price performance – Erste Group share up 76.8% in 2012 30 +6.3% 25.55 24.03 25 +76.8% 20 13.59 15 10 5 0 AGM 2013 16 May 2013 20
Slide 21: Q1 13 performance summary – Risk costs declined, BCR improved
Q1 13 performance summary – Risk costs declined, BCR improved • Net profit of EUR 176.2m supported by significant reduction in risk costs Income statement – • Decline in net profit due to significant one-off income in Q1 12 Q1 13 vs Q1 12 • Operating result impacted by subdued loan demand and low in
Slide 22: Outlook
Outlook − Erste Group expects a slight improvement in economic performance for Central and Eastern Europe in H2 2013, even though growth will remain moderate − For 2013 Erste Group targets a stable operating result compared to 2012 − Slightly lower operating income as a result of moderate loan deman
Slide 23: Thank you for your attention!
Thank you for your attention!
Slide 24: Friedrich Rödler – Agenda items
Friedrich Rödler Chairman of the supervisory board Agenda items
Slide 25: Appropriation of the profit
Second item on the agenda Appropriation of the profit AGM 2013 16 May 2013 25
Slide 26: Grant of discharge to the members of the management board and the supervisory board
Third item on the agenda Grant of discharge to the members of the management board and the supervisory board AGM 2013 16 May 2013 26
Slide 27: Remuneration of the members of the supervisory board
Fourth item on the agenda Remuneration of the members of the supervisory board AGM 2013 16 May 2013 27
Slide 28: Election to the supervisory board
Fifth item on the agenda Election to the supervisory board AGM 2013 16 May 2013 28
Slide 29: Appointment of an additional auditor
Sixth item on the agenda Appointment of an additional auditor AGM 2013 16 May 2013 29
Slide 30: Authorisation to acquire own shares for the purpose of securities trading
Seventh item on the agenda Authorisation to acquire own shares for the purpose of securities trading AGM 2013 16 May 2013 30
Slide 31: Authorisation to acquire own shares for no designated purpose
Eighth item on the agenda Authorisation to acquire own shares for no designated purpose AGM 2013 16 May 2013 31
Slide 32: Authorisation to acquire own participation certificates for the purpose of securities trading
Ninth item on the agenda Authorisation to acquire own participation certificates for the purpose of securities trading AGM 2013 16 May 2013 32
Slide 33: Authorisation to acquire own participation certificates for no designated purpose
Tenth item on the agenda Authorisation to acquire own participation certificates for no designated purpose AGM 2013 16 May 2013 33
Slide 34: Q&A
20th Annual General Meeting Erste Group Bank AG Q&A
Slide 35: Resolutions
20th Annual General Meeting Erste Group Bank AG Resolutions
Slide 36: Appropriation of the profit
Second item on the agenda Appropriation of the profit AGM 2013 16 May 2013 36
Slide 37: Grant of discharge to the members of the management board and the supervisory board
Third item on the agenda Grant of discharge to the members of the management board and the supervisory board AGM 2013 16 May 2013 37
Slide 38: a) Discharge of the members of the management board
Third item on the agenda a) Discharge of the members of the management board AGM 2013 16 May 2013 38
Slide 39: b) Discharge of the members of the supervisory board
Third item on the agenda b) Discharge of the members of the supervisory board AGM 2013 16 May 2013 39
Slide 40: Remuneration of the members of the supervisory board
Fourth item on the agenda Remuneration of the members of the supervisory board AGM 2013 16 May 2013 40
Slide 41: Election to the supervisory board
Fifth item on the agenda Election to the supervisory board AGM 2013 16 May 2013 41
Slide 42: a) Reduction of the number of supervisory board members from ten to nine
Fifth item on the agenda a) Reduction of the number of supervisory board members from ten to nine AGM 2013 16 May 2013 42
Slide 43: b) Election of Theresa Jordis to the supervisory board
Fifth item on the agenda b) Election of Theresa Jordis to the supervisory board AGM 2013 16 May 2013 43
Slide 44: Appointment of an additional auditor
Sixth item on the agenda Appointment of an additional auditor AGM 2013 16 May 2013 44
Slide 45: Authorisation to acquire own shares for the purpose of securities trading
Seventh item on the agenda Authorisation to acquire own shares for the purpose of securities trading AGM 2013 16 May 2013 45
Slide 46: Authorisation to acquire own shares for no designated purpose
Eighth item on the agenda Authorisation to acquire own shares for no designated purpose AGM 2013 16 May 2013 46
Slide 47: Authorisation to acquire own participation certificates for the purpose of securities trading
Ninth item on the agenda Authorisation to acquire own participation certificates for the purpose of securities trading AGM 2013 16 May 2013 47
Slide 48: Authorisation to acquire own participation certificates for no designated purpose
Tenth item on the agenda Authorisation to acquire own participation certificates for no designated purpose AGM 2013 16 May 2013 48
Slide 49: Thank you for your active participation!
20th Annual General Meeting Erste Group Bank AG Thank you for your active participation!