Präsentation Telefonkonferenz - 3. Quartal 2021 (englisch)

Erste Group investor presentation

Q3 2021 results

2 November 2021

Excellent operating performance and benign risk environment continue, resulting in ROTE of 15.0%

Bernd Spalt, 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

• Key developments and executive summary
• Macroeconomic and business update
• Operating trends
• • Volumes
  • Revenues and costs
  • Impairments and asset quality
• Capital and wholesale funding
• Key takeaways and outlook
• Additional information

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Key developments -

Setting the frame for today's presentation

• CEE & AT macro recovery on track, expected 2021 real GDP growth upgraded further
• • Economic growth in CEE & Austria has outperformed expectations so far this year
  • Faster than expected rate hikes in Czech Republic, Hungary and Romania
  • Loan growth guidance for 2021 improved again to mid to high-singledigit growth
• Fee performance goes from strength to strength
• • Strong recovery in payment services fees continued in Q3 21
  • Asset management and insurance brokerage fees continue to make strong growth contribution
  • Further guidance upgrade to low double-digit growth in 2021
• Benign credit risk environment results in further improvement of 2021 risk cost guidance
• • Risk cost guidance revised to max 15bps in 2021, following 4bps in 1-9 21
  • NPL ratio at historic low of 2.4%; estimated at approx. 2.5% at year-end 2021
• Further 2021 outlook upgrades
• • NII expected to post low-single digit growth in 2021
  • Operating result to post double-digit growth, CIR to improve significantly yoy
  • Significant improvement in net profit → return to solid, double-digit ROTE
• Erste Group returns to progressive dividend policy
• • Payout 2021: EUR 1.0 per share additional payment following ECB lifting its dividend restriction; subject to EGM approval on 25 Nov 2021, resulting in total payout of EUR 1.5 per share
  • Payout 2022: Erste Group targets EUR 1.6 DPS for business year 2021

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ESG: a key objective for Erste Group (1) -

Economic success paired with environmental and social well-being

Our aspiration …

Main topics where we aspire to make a change

We believe in a stronger, healthier and

more prosperous society in the

Central and Eastern European region.

Where we believe to have an impact …

Climate

Action

Clean

Water

Recycling & Waste

Affordable Housing

Climate change is not only a global challenge. Our region needs green investments into energy transition, clean transportation and building renovation.

Clean water is still a prevailing challenge in our region. Wastewater collection, leakage and treatment deficiencies need long-term commitment and financing.

Collection, sorting and reprocessing of urban and industrial waste is an important part of financial success and resilience of our clients and societies.

Housing is a growing concern of many middle-class citizens, especially young families. Our cities need

relevance	history
…we make an	…our 200 years of
impact through 16	history built on our
million customers,	purpose of
~45,000 employees	prosperity proves
and ~2,100+	our long-term
branches in the	commitment to the
region.	well-being of
	society.

proximity

…our social banking activities support those who are especially in need of help and financial assistance.

Financial Inclusion

Financial Literacy

Gender Equality

affordable housing projects with long-term sustainable financing.

There are still 14 million people in our region in risk of poverty. Many of them need access to banking services and financial guidance.

Financial literacy is a basis for successful financial life, financial stability and prosperity. Financial literacy needs to get into schools and the education system at large.

Strong, resilient societies are built from successful individuals enjoying equal opportunities, rewards and recognition regardless of their gender.

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