Q3 2020 Business Update amid Covid-19
Understanding operating trends (2) -
Strong NII and fee performance in Q3 20, while costs were flat
•
NII improved in Q3 20, both qoq and yoy
•
NII continues to get accrued for moratoria loans, only PV- negative
modification losses lead to negative impact on NII (EUR 5.5m in Q3 20
vs EUR 26.1m in Q2 20)
.
•
Negative impact from rate cuts only partly mitigated by TLTRO3
Expectation is for flattish NII vs 2019
•
.
Fees recovered almost to prior year level, primarily driven
by asset management and payment services
Yoy decline mainly driven by lending business while payment services
fees recovered despite negative SEPA impact (about EUR 6m in Q3 20,
EUR 17m ytd); securities and asset management business still grew
NII development
+2.0%
3,517
3,589
+0.4%
1,188
1,168
1,192
.
Fees are expected to decline in low-single digits in 2020
1-9 19
1-9 20
Q3 19
Q2 20
Q3 20
Trading & FV result continued to perform well in Q3 20, after
recovery in Q2 20 and negative result in Q1 20
Fee development
-2%
Operating costs broadly flat yoy and qoq, as lower other
504
492
administrative expenses offset minor increases elsewhere
452
•
Lower advertising/marketing expenses yoy and qoq
•
Lower legal and consulting costs yoy and qoq
•
Costs set to decline yoy
-1%
240
237
213
166 174 182
Q3 19
Q2 20
Q3 20
+10%
Cost/income ratio at solid 55.6% in Q3 20, driven by strong
revenue and cost performance
ERSTEŚ
Group
-27%
49
38 36
Total fees
Payment services
Securities & AM
& brokerage fees
Lending business
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