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

Q1 2023 results presentation

Vienna, 28 April 2023

Revenue momentum and risk performance drive guidance upgrade

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, 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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