Erste Group Bank AG

Despite net loss of EUR -929.7 mn in the first half of 2014 CET 1-ratio rises; - Seite 2

Taxes on income rose to EUR 335.6 million mainly due to a negative change in deferred taxes (net) in the amount of EUR 164.2 million. The net result attributable to owners of the parent amounted to EUR -929.7 million (EUR 302.2 million), tax expenses accounted for EUR 489.7 million thereof.

Total IFRS-capital declined to EUR 14.1 billion (EUR 14.8 billion). Common equity tier 1 capital (CET 1, phased-in) increased to EUR 11.5 billion versus EUR 11.2 billion (Basel 2.5). Risk-weighted assets (phased-in) were unchanged at EUR 98.0 billion (EUR 97.9 billion). The common equity tier 1 ratio (CET 1, phased-in) improved to 11.7% versus 11.4% (Basel 2.5). The total capital ratio (Basel 3, phased-in) rose to 16.5% versus 16.3% (Basel 2.5).

Total assets amounted to EUR 198.4 billion (EUR 200.1 billion). Loans and advances to customers (net) were stable at EUR 120.0 billion (EUR 119.9 billion). The loan-to-deposit ratio stood at 99.8% (98.0%).

Outlook

Erste Group confirms its guidance of 3 July 2014 for 2014 and 2015 as follows:

* For the geographic segment Romania: a full normalisation of risk costs at 100-150 bps of average gross customer loans starting in 2015, accompanied by an accelerated NPL reduction (down about EUR 800 million or 25%, compared to year-end 2013) already in 2014; a significant rise in the NPL coverage ratio; a lower, but sustainable operating result due to a lower unwinding impact on net interest income;

* For the geographic segment Hungary: a gradual normalisation of risk costs to 150-200 bps (by 2016) of average gross customer loans based on the assumption that all government actions will be completed in 2014; a lower, but sustainable operating result due to lower net interest income;

* For Erste Group (consolidated): * A group operating result, which - despite stable underlying group operating trends - will be pushed slightly below guidance in 2014 due to weaker operating results in Romania and Hungary; * Risk costs of EUR 2.1-2.4 billion depending on booking of Hungarian consumer loan law impact in risk provisions or other operating result; * A net loss for 2014 of EUR 1.4-1.6 billion; * A CET 1-ratio (fully loaded, based on current definitions) of about 10.0% at year-end; * Strongly improved post-provision result and net profit (ROTE: 8-10%) in 2015, despite still disproportionate banking levies.

Presentation of results via audio webcast and telephone conference for analysts

Date Thursday 31 July 2014

Time 9:00 Vienna / 8:00 London / 3:00 New York The presentation will be held in English.

Audio webcast http://www.erstegroup.com/investorrelations

Dial-in for analysts UK: [phone] US: [phone] Confirmation Code 9166232

Replay Will be available at http://www.erstegroup.com/en/Investors/Webcasts-Videos.



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emitter: Erste Group Bank AG address: Milchgasse 1, 1010 Wien country: Austria contact person: Thomas Sommerauer/ Simone Pilz phone: + 43 (0)5 0100 - 17741 e-mail: [e-mail] website: www.erstegroup.com

ISIN(s): AT0000652011 (share) stock exchanges: official trade in Vienna

[ source: http://www.pressetext.com/news/20140731011 ]