Q3 2020 Business Update amid Covid-19
Business performance: allowances for loans and NPL coverage
NPL coverage rises to multi-year high of 95.5%
Group
107.8%
3.282
76.9%
3,662
91.1%
3,789
95.5%
303
64.5%
AT/EBO e
333
73.6%
339
79.5%
892
64.6%
AT/SB
948
74.2%
966
77.4%
235
61.0%
AT/OA
296
95.3%
328
493
100.4%
CZ
598
112.4%
624
115.1%
445
104.3%
RO
469
117.4%
471
119.6%
357
SK
389
412
77.6%
95.8%
105.0%
110
91.1%
HU
148
151.2%
154
122.3%
413
82.2%
HH
HR
427
84.1%
442
88.6%
28
RS
233
866
129.0%
36
36
187.0%
179.2%
Other
69
17
811
16
Not meaningful
HF
in EUR m
•
•
30/09/19
-
30/06/20
30/09/20
NPL coverage increases yoy and qoq due to rising
allowances
Year-on-year segment trends:
Allocations of allowances in performing portfolio in anticipation
of future credit losses resulted in higher NPL coverage across
all segments
Quarter-on-quarter segment trends:
•
AT/EBOE, AT/SB, SK, HR: coverage improvement further driven
by slight decrease in NPLs paired with higher loan loss
allowances (mostly triggered by the continued transfer of loans
to stage 2 as a result of Covid-19 related credit risk overlays and
revised forward-looking information due to new macro
assumptions)
CZ: Increase of loan loss allowances at a faster pace than
increase in NPLs resulted in higher NPL coverage
HU: NPL coverage remains at a very high level despite default
of one corporate customer
ERSTEŚ
Group
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