Erste Bank : Raport anual 2021

Erste Group

Annual Financial Report 2021

Table of contents

Annual Report 2021	1
Letter from the CEO	4
Report of the supervisory board	6
Report of the audit committee	8
(Consolidated) non-financial report	57
(Consolidated) corporate governance report	95
Audited financial reporting
Auditors' report (report of the independent auditors)	112
Management report	117
Consolidated financial statements	128
Glossary, Abbreviations	294
Statement of all members of the management board	299
Financial Statements 2021	301

Imprint

Erste Group Bank AG

Am Belvedere 1, 1100 Vienna, Austria E-Mail:[e-mail]:https://www.erstegroup.com/en/investoren

Responsible for the content:

Investor Relations & Accounting Teams, Erste Group

Erste Group

Annual Report 2021

Extensive presence in Central and Eastern Europe

Core markets of Erste GroupIndirect presence in CEE

Key financial and operating data

Income statement (in EUR million)	2017	2018	2019	2020	2021
Net interest income	4,353.2	4,582.0	4,746.8	4,774.8	4,975.7
Net fee and commission income	1,851.6	1,908.4	2,000.1	1,976.8	2,303.7
Net trading result and gains/losses from financial instruments at FVPL	210.5	193.7	293.8	199.5	231.8
Operating income	6,669.0	6,915.6	7,255.9	7,155.1	7,742.0
Operating expenses	-4,158.2	-4,181.1	-4,283.3	-4,220.5	-4,306.5
Operating result	2,510.8	2,734.6	2,972.7	2,934.6	3,435.5
Impairment result from financial instruments	-132.0	59.3	-39.2	-1,294.8	-158.8
Other operating result	-457.4	-304.5	-628.2	-278.3	-310.5
Pre-tax result from continuing operations	2,077.8	2,495.0	2,329.7	1,368.0	2,933.4
Net result attributable to owners of the parent	1,316.2	1,793.4	1,470.1	783.1	1,923.4
Net interest margin (on average interest-bearing assets)	2.40%	2.30%	2.18%	2.08%	2.05%
Cost/income ratio	62.4%	60.5%	59.0%	59.0%	55.6%
Provisioning ratio (on average gross customer loans)	0.09%	-0.03%	0.02%	0.78%	0.09%
Tax rate	19.7%	13.3%	18.0%	25.0%	17.9%
Return on tangible equity	11.5%	15.2%	11.2%	5.1%	12.7%
Earnings per share (in EUR)	2.94	4.02	3.23	1.57	4.17
Balance sheet (in EUR million)	Dec 17	Dec 18	Dec 19	Dec 20	Dec 21
Cash and cash balances	21,796	17,549	10,693	35,839	45,495
Trading, financial assets	42,752	43,930	44,295	46,849	53,211
Loans and advances to banks	9,126	19,103	23,055	21,466	21,001
Loans and advances to customers	139,532	149,321	160,270	166,050	180,268
Intangible assets	1,524	1,507	1,368	1,359	1,362
Miscellaneous assets	5,929	5,382	6,012	5,830	6,090
Total assets	220,659	236,792	245,693	277,394	307,428
Financial liabilities held for trading	3,423	2,508	2,421	2,625	2,474
Deposits from banks	16,349	17,658	13,141	24,771	31,886
Deposits from customers	150,969	162,638	173,846	191,070	210,523
Debt securities issued	25,095	29,738	30,371	30,676	32,130
Miscellaneous liabilities	6,535	5,381	5,437	5,840	6,902
Total equity	18,288	18,869	20,477	22,410	23,513
Total liabilities and equity	220,659	236,792	245,693	277,394	307,428
Loan/deposit ratio	92.4%	91.8%	92.2%	86.9%	85.6%
NPL ratio	4.0%	3.2%	2.5%	2.7%	2.4%
NPL coverage ratio (based on AC loans, ex collateral)	68.8%	73.4%	77.1%	88.6%	90.9%
Texas ratio	29.2%	24.5%	19.9%	20.3%	18.3%
Total own funds (CRR final, in EUR million)	20,337	20,891	21,961	23,643	24,758
CET1 capital ratio (CRR final)	12.9%	13.5%	13.7%	14.2%	14.5%
Total capital ratio (CRR final)	18.2%	18.1%	18.5%	19.7%	19.1%
About the share	2017	2018	2019	2020	2021
Shares outstanding at the end of the period	429,800,000	429,800,000	429,800,000	429,800,000	429,800,000
Weighted average number of outstanding shares	426,679,572	426,696,221	426,565,097	426,324,725	426,246,662
Market capitalisation (in EUR billion)	15.5	12.5	14.4	10.7	17.8
High (in EUR)	37.99	42.38	37.07	35.6	41.95
Low (in EUR)	27.46	28.10	28.23	15.34	24.80
Closing price (in EUR)	36.105	29.05	33.56	24.94	41.35
Price/earnings ratio	11.8	7.0	9.8	13.7	9.2
Dividend per share (in EUR)	1.20	1.40	0.00	1.50	1.60
Payout ratio	39.2%	33.6%	0.0%	82.3%	35.8%
Dividend yield	3.3%	4.8%	0.0%	6.0%	3.9%
Book value per share	30.0	31.1	32.9	34.0	36.7
Price/book ratio	1.2	0.9	1.0	0.7	1.1
Additional information	Dec 17	Dec 18	Dec 19	Dec 20	Dec 21
Employees (full-time equivalents)	47,702	47,397	47,284	45,690	44,596
Branches	2,565	2,507	2,373	2,193	2,091
Customers (in million)	16.1	16.2	16.6	16.1	16.1

CRR: Capital Requirements Regulation

Shares outstanding include Erste Group shares held by savings banks that are members of the Haftungsverbund (cross-guarantee system).

The dividend for the financial year 2020 was paid in two tranches. On 19 May 2021, the annual general meeting resolved to pay a dividend of EUR 0.5 per share. An additional EUR 1 per share was reserved for a potential later payment. After expiry of the ECB recommendation, this dividend was paid in December 2021 as resolved by the extraordinary general meeting of 25 November 2021.