Q3 2020 Business Update amid Covid-19
Business update (2) -
Corporates - what's happening on the ground?
•
Clients continue to adjust
•
.
•
Loan demand is still increasing, but at a slowing pace in Q3
State guaranteed loan programmes mostly done in Austria;
guaranteed volumes by comparison low in CEE
Large acquisition finance facilities still in preparation, M&A has
not picked up yet
After strong reductions in earnings projections in Q2, we saw a
stabilisation in forecasts on the lower level in Q3 at listed
Corporates in CEE for 2020 and 2021
Clients continue to tap capital markets
•
126 mandated transactions ytd with a total issuance volume of
EUR 82 bn accompanied by Erste, mostly debt capital markets
Drawdown behaviour
•
Ratio of drawn loan volume to overall loan and guarantee
exposure has gone from 67.2% (YE19) to 70.4% (Q3 20)
Core revenue slightly down
•
•
NII increase yoy despite the negative impact from rate cuts
(primarily in CZ hitting liability side), continued margin pressure
Fees decline yoy (-7.3%) on the back of lower economic activity
and negative SEPA regulation impact (primarily in CS and EBC)
Trading & FV results below 2019, driven by CVA/ DVA valuations
+9.0%
Corporate loan stock development
(gross, business line view, in EUR bn)
+8.2%
+7.1%
+5.4%
55.2
56.8
57.6
50.6
52.5
53.8
55.1
58.1
YE 18 YE 19
Q1 19 Q1 20
Q2 19 Q2 20
Q3 19 Q3 20
Operating income development
(business line view, in EUR m)
-3.3%
-2.2%
-3.4%
-4.4%
1,185.1
1,145.5
377.0 368.8
404.0 390.2
404.1 386.4
•
SME business growth slowed
•
The number of active SME clients increases slower in 2020 than
in 2019 (low single digit growth rate)
•
SME loan volume grew by 3% yoy
ERSTEŚ
Group
1-9 19 1-9 20
Q1 19 Q1 20
Q2 19 Q2 20
Q3 19 Q3 20
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