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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, net release of risk costs push net profit up
QoQ net profit development
YTD net profit development
in EUR m
in EUR m
+14.7%
162
117
49
64
55
594
199
518
Q4 22 Operating
Operating Risk costs
Other
Taxes on Minorities Q1 23
income
expenses
result
income
+32.3%
7
80
142
70
462
178
594
449
1-322 Operating
Operating Risk costs
Other
Taxes on Minorities 1-323
income
expenses
result
income
Continuing strong revenue trends in Q1 23
NII remains key revenue driver in Q1 23, up 27.1%
− Underlying sequential NII growth remained significant at 5.0%
− Fees also contribute, in line with guidance
Significantly lower risk costs
Costs benefit from non-recurrence of Q1 22 one-off
− Low allocations paired with recoveries, amid positive credit risk
− Underlying cost inflation in line with expectations
environment
Costs, other result impacted by seasonal regulatory items
Net release of risk costs adds to better profitability
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EXECUTIVE SUMMARY: P&L DASHBOARD
Flying start to 2023 drives guidance upgrade
Net interest margin
Cost/income ratio
Risk cost ratio
in %
in %
in bps
2.50
60.7
G23: ~51%
G23: <25bps
37
28
2.24
2.25
2.15
51.6
51.9
13
2.14
49.8
49.7
-4
-18
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Banking levies
Earnings per share
Return on tangible equity
40
in EUR m
99
71
54
22
1.49
1.05
1.19 1.10
in EUR
in %
17.1
13.6
14.6
1.39
12.2
12.2
G23: ~13-15%
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
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Disclaimer
Erste Group Bank AG published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 05:36:01 UTC.
Erste Group Bank AG is one of the leading Austrian banking groups. Net interest income by activity breaks down as follows:
- retail banking (42.4%);
- corporate banking (24.7%)
- investment, finance and market banking (8.4%);
- other (24.5%).
At the end of 2022, the group was managing EUR 222.6 billion in current deposits and EUR149.3 billion in current loans.
Products and services are marketed through a network of 2,029 branches located in Austria (797), Czech Republic (398), Romania (321), Slovakia (190), Croatia (133), Hungary (102) and Serbia (88).
Net interest income breaks down geographically as follows: Austria (44.7%), Europe (52.8%) and other (2.5%).