Q4 2022 preliminary results presentation
Vienna, 28 February 2023
Erste Group confirms guidance for 2023, targets share buy-back
Willi Cernko, CEO Erste Group
Stefan Dörfler, CFO Erste Group
Alexandra Habeler-Drabek, CRO Erste Group
DISCLAIMER
Cautionary note regarding forward-looking statements
THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THIS INFORMATION OR OPINIONS CONTAINED HEREIN.
CERTAIN STATEMENTS CONTAINED IN THIS DOCUMENT MAY BE STATEMENTS OF FUTURE EXPECTATIONS AND OTHER FORWARD-LOOKING STATEMENTS THAT ARE BASED ON MANAGEMENT'S CURRENT VIEWS AND ASSUMPTIONS AND INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR EVENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH STATEMENTS.
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PRESENTATION TOPICS
EXECUTIVE SUMMARY
MACROECONOMIC AND BUSINESS UPDATE
OPERATING TRENDS
WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK
APPENDIX
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EXECUTIVE SUMMARY: P&L PERFORMANCE
Positive operating jaws drive 2022 net profit growth
QoQ net profit development | YTD net profit development |
in EUR m | in EUR m |
+12.5% | |||||||||||||||
268 | |||||||||||||||
829 | 141 | ||||||||||||||
130 | 2,165 | ||||||||||||||
31 | 17 | ||||||||||||||
+1.5% | 1,923 | ||||||||||||||
176 | 98 | 43 | 68 | ||||||||||||
2 | |||||||||||||||
510 | 43 | 518 | |||||||||||||
Q3 22 | Operating | Operating | Risk costs | Other | Taxes on | Minorities | Q4 22 | 2021 | Operating | Operating | Risk costs | Other | Taxes on | Minorities | 2022 |
income | expenses | result | income | income | expenses | result | income |
Strong revenue trends remain intact in Q4 22
- Underlying NII growth remained significant
Cost inflation fully in line with guidance
Risk cost driven by foward looking indicator (FLI) update
- Actual defaults remained insignificant in all geographies
NII is the key revenue driver in 2022, up 19.6%
- Fees also advance strongly, albeit at slowing pace
Successful cost containment despite rising inflation Risk costs increase only moderately to 15bps
- Rise primarily attributable to management overlays and FLI updates, as default cases remain at low levels
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EXECUTIVE SUMMARY: P&L DASHBOARD
Upgraded 2022 financial guidance fully delivered
Net interest margin | Cost/income ratio | | |||
in % | in % | ||||
60.7 | |||||
2.24 | 2.25 | 58.1 | G22: <55% | ||
2.15 | |||||
2.14 | |||||
2.08 | 51.6 | 51.9 | |||
49.8 |
Q4 21 Q1 22 Q2 22 Q3 22 Q4 22Q4 21 Q1 22 Q2 22 Q3 22 Q4 22
Banking levies | Earnings per share |
Risk cost ratio | | ||||||||
in bps | |||||||||
G22: <20 bps | 37 | 28 | |||||||
24 | |||||||||
13 | |||||||||
-18 | |||||||||
Q4 21 | Q1 22 | Q2 22 | Q3 22 | Q4 22 | |||||
Return on tangible equity | |
71
40
2
22
in EUR m
1.49
54
0.93 1.05
1.19
in EUR
1.10
in % | |||
17.1 | |||
12.2 | 13.6 | 12.2 | |
11.0 | |||
G22: ~14% |
Q4 21 | Q1 22 | Q2 22 | Q3 22 | Q4 22 | Q4 21 | Q1 22 | Q2 22 | Q3 22 | Q4 22 |
Q4 21 | Q1 22 | Q2 22 | Q3 22 | Q4 22 |
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Erste Group Bank AG published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 06:44:05 UTC.