Erste Bank : Präsentation Telefonkonferenz - 1. Halbjahr 2023 (englisch)

Q2 2023 results presentation

Vienna, 31 July 2023

Strong bottom line paves way for increased capital return

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.

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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

Revenue growth and net releases of risk costs drive net profit

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

		+51.0%
			67	60	896
		267
	12	12
594	164

Q1 23 Operating	Operating Risk costs	Other	Taxes on Minorities Q2 23
income	expenses	result	income

	+31.0%
187	3	53
	123
1,014			301	1,490
1,137

1-622 Operating	Operating Risk costs	Other	Taxes on Minorities 1-623
income	expenses	result	income

Continued strong revenue trends in Q2 23

• NII sets another quarterly record (up by 1.3%)
• Net trading & FV result rises mainly on better valuations

NII remained key revenue driver in H1 23, up 25.5%

• Trading and FV result also made a strong positive contribution supported by improved valuations

Strongly improved other result	Cost inflation in line with expectations
− Q1 23 impacted by full-year charges, plus: reversal of some	Strong risk performance supported profitability
resolution fund charges and banking tax in HU

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EXECUTIVE SUMMARY: P&L DASHBOARD

2023 guidance upgraded again

	Net interest margin			Cost/income ratio
				in %					in %
			2.50	2.45				G23: <50%
2.15	2.24	2.25			49.8	51.6	51.9	49.7
									46.2
Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23

Risk cost ratio

in bps

G23: <10 bps

37

28

-4-2

-18

Q2 22 Q3 22 Q4 22 Q1 23 Q2 23

Banking levies

99

71

54

22

in EUR m

22

Earnings per share

in EUR

1.98

	1.49	1.19	1.39
		1.10

Return on tangible equity

in %

20.2

17.1

13.6	14.6
12.2
	G23: >15%

Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

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