Q3 2020 Business Update amid Covid-19
Credit risk -
-
Asset quality: NPL ratio stable ytd as NPL coverage continues to build
Development of NPL ratio
Development of NPL coverage
•
in %
91.1
95.5
2.5
77.1
80.9
2.4
2.4
2.4
2019
Q1 20
Q2 20
Q3 20
.
Stable NPL ratio year-to-date
•
No material rise in defaults (yet) due to multitude of government
support measures (moratoria, guarantees, tax breaks, labour
market support measures, etc)
No significant regional divergences
ERSTEŚ
Group
•
2019
Q1 20
Q2 20
Q3 20
in %
NPL coverage at multi-year high of 95.5% in Sept 2020
excluding collateral
•
NPL coverage ratio above 100% in CEES, except Croatia (89%)
NPL coverage in Austria also increased; currently at 82%
Increase in Q3 2020 driven primarily by Stage 2 provisions
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