Erste Bank : Präsentation Telefonkonferenz - Vorläufiges Jahresergebnis 2022

Q4 2022 preliminary results presentation

Vienna, 28 February 2023

Erste Group confirms guidance for 2023, targets share buy-back

Willi Cernko, CEO Erste Group

Stefan Dörfler, CFO Erste Group

Alexandra Habeler-Drabek, CRO Erste Group

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.

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PRESENTATION TOPICS

EXECUTIVE SUMMARY

MACROECONOMIC AND BUSINESS UPDATE

OPERATING TRENDS

WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK

APPENDIX

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EXECUTIVE SUMMARY: P&L PERFORMANCE

Positive operating jaws drive 2022 net profit growth

QoQ net profit development	YTD net profit development
in EUR m	in EUR m

											+12.5%
										268
									829		141
											130			2,165
												31	17
			+1.5%				1,923
	176	98	43	68
			2
510					43	518
Q3 22	Operating	Operating	Risk costs	Other	Taxes on	Minorities	Q4 22	2021	Operating	Operating	Risk costs	Other	Taxes on	Minorities	2022
	income	expenses		result	income				income	expenses		result	income

Strong revenue trends remain intact in Q4 22

• Underlying NII growth remained significant

Cost inflation fully in line with guidance

Risk cost driven by foward looking indicator (FLI) update

• Actual defaults remained insignificant in all geographies

NII is the key revenue driver in 2022, up 19.6%

• Fees also advance strongly, albeit at slowing pace

Successful cost containment despite rising inflation Risk costs increase only moderately to 15bps

• Rise primarily attributable to management overlays and FLI updates, as default cases remain at low levels

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EXECUTIVE SUMMARY: P&L DASHBOARD

Upgraded 2022 financial guidance fully delivered

Net interest margin			Cost/income ratio	
		in %			in %
				60.7
	2.24	2.25	58.1	G22: <55%
	2.15
2.14
2.08				51.6	51.9
				49.8

Q4 21 Q1 22 Q2 22 Q3 22 Q4 22Q4 21 Q1 22 Q2 22 Q3 22 Q4 22

Banking levies

Earnings per share

		Risk cost ratio			
								in bps
		G22: <20 bps	37		28
24
		13
				-18
Q4 21	Q1 22	Q2 22	Q3 22	Q4 22
	Return on tangible equity		

71

40

2

22

in EUR m

1.49

54

0.93 1.05

1.19

in EUR

1.10

			in %
		17.1
	12.2	13.6	12.2
11.0
		G22: ~14%

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

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