Investor Presentaiton
Key developments (2) -
Setting the frame for today's presentation
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Encouraging business environment in 2021
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Economic growth in CEE & Austria has outperformed expectations
Faster than expected rate hikes in Czech Republic, Hungary and Romania
Strong operating result in 2021: +17.1%
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Accelerating NII growth accompanied by record fee result drives operating income up by 8.2%
Moderate cost inflation of 2.0%
Benign credit risk environment throughout 2021
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Erste Group closes 2021 with risk costs of 9 bps, best NPL ratio since IPO at 2.4%
Robust guidance for 2022, but risks are rising rapidly
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Continued strong GDP growth in CEE & Austria expected
• At least mid-single digit NII growth accompanied by mid-single digit loan growth
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Fee growth expected in low to mid-single digits assuming constructive capital markets environment
Positive jaws, as operating income expected to grow faster than operating expenses
2024 CIR target of 55% likely to be achieved already in 2022
Risk costs to remain moderate (<20 bps)
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Again targeting double-digit ROTE
• Erste Group defines M&A-/share buyback buffer on top of base dividend
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Erste Group to propose to AGM EUR 1.6 DPS for business year 2021
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CET1 ratio portion > 13.5% = M&A-/share buyback buffer with preference for M&A (bolt-ons in existing markets)
ERSTEŚ
Group
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