Q3 2020 Business Update amid Covid-19
Macroeconomic update (1) -
CEE tackles Covid-19 challenge from a position of strength
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Economy
Strong labour markets
Unemployment rates at historic lows in
most countries at the end of 2019
Real wage growth
Reduced external vulnerabilities
Materially improved current account
balances in all Erste CEE countries
Sound government finances
Manageable public debt
Low interest rates
Unemployment rates (in %)
Banking markets
Deposit overhang & excess liquidity on
system level in all key markets
No excesses, rather sustainable asset
growth over the past years
Sustainable growth opportunities
Customer loans/GDP (in %)
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Subsidiary banks
Fully self-funded business model as
opposed to parent company dependency
Focus on local currency lending
Historically low NPL ratios
Strong market shares
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High capital ratios
Loan/deposit ratios (in %)
55
19
101
92
159
125
124
68
67 65
111
11
61
60
10
_ _ 92 _ _
98
99 96 98
100
10
47
49
45
7
70 73
66
69
72
6 6
7
36
38
32
26
4
3
2
5
AT CZ SK
RO HU
HR
RS
AT
CZ
SK
RO HU
HR
RS
Group CZ
SK RO HU
HR RS
2007
2019
2007
2019
2007
2019
ERSTEŚ
Group
Page
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