Erste Group

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  Erste Group Bank AG
logo
Country AustriaAustria Austria
Seat Vienna
legal form Corporation
ISIN AT0000652011
Bank code 20100
BIC GIBAATWGXXX
founding 2008 (1819 as the first Austrian Spar-Casse )
Website www.erstegroup.com
Business data 2018
Total assets € 236.8 billion
insoles € 162.6 billion
Customer credit € 149.3 billion
Employee 47,397
Offices 2,507
management
Board Bernhard Spalt , CEO
Supervisory board Friedrich Rödler , Chairman of the Supervisory Board

The Erste Group Bank AG (Erste Group), with 16 million customers and more than 2,500 stores in seven countries one of the largest banking groups in Central and Eastern Europe. It belongs to the Savings Bank Group in Austria and in the Austrian Savings Banks Association represented.

history

Erste Group was founded in 1819 in Leopoldstadt , a suburb of Vienna , as the first Austrian Spar-Casse . After the fall of communism , the company expanded rapidly into Central and Eastern Europe and by 2008 had acquired 10 banks. The company went public in 1997 and is now listed on the Vienna , Prague and Bucharest stock exchanges and is weighted in the CEETX , ATX and PX indices . On August 9, 2008, the then Erste Bank of the Austrian Sparkassen AG was split into the newly founded holding company Erste Group and the subsidiary Erste Bank Oesterreich; their foreign holdings were taken over by the new holding company. Erste Group now subsumes all of the group's companies.

The 1997 initial public offering in Vienna was carried out by the then unified Erste Bank, as were further capital increases up to 2006 and a share split. Some of these were the largest transactions of this kind ever carried out in the Vienna financial center. The capital raised was used to finance the acquisitions. On July 18, 2013, Erste Group successfully completed a capital increase of EUR 660.6 million. Erste Group shares are listed on the Vienna, Prague and Bucharest stock exchanges. The Erste Group Bank AG share is the most weighted component of the “ATX” share index, which mirrors the blue chip segment on the Vienna Stock Exchange (as of May 25, 2018).

In 2017 Erste Group received the “Best Bank in Central and Eastern Europe” award from the specialist publication Euromoney. The Erste Group subsidiary banks in Austria, the Czech Republic and Montenegro were also named “Best Bank” in their respective markets by Euromoney in 2017, while the group subsidiary Banca Comerciala Romana (BCR) in Romania received the “Best Bank Transformation in Central and Eastern Europe” award .

In a 2013 ranking by Forbes Magazine of the world's largest public limited companies, Erste Group Bank ranks 672, making it third among Austrian companies. Erste Group ranks among the 100 largest banks in the world in terms of total assets. This shows a comparison of the NordLB.

The asset management activities within Erste Group Bank AG are coordinated and managed by Erste Asset Management GmbH, to which the subsidiary Erste-Sparinvest KAG has belonged since 2008 .

In September 2018, Bernhard Spalt was appointed by the Erste Group supervisory board to succeed Andreas Treichl as CEO of Erste Group from January 1, 2020.

Expansion course in Central and Eastern Europe since 1997

After the restructuring and the IPO, the then unified Erste Bank began to expand in Central and Eastern Europe . The Hungarian Mezőbank was the first to be taken over in 1997 . After another capital increase, the expansion was continued. In 2000, the majorities in the Czech Česká spořitelna and the Slovak Slovenská sporiteľňa were taken over.

Also in 2000, three small Croatian banks were merged to form Erste & Steiermärkische Bank dd , after they had been taken over from 1997 by Erste Bank and Steiermärkische Bank und Sparkassen AG.

In 2003 Riječka banka was merged with “Erste & Steiermärkische Bank”. The share of the first in this subsidiary has since been 69.3%.

The takeover of 61.88% of Banca Comercială Română SA (BCR), the largest Romanian bank with 2.8 million customers and 12,000 employees, in 2005 for 3.751 billion euros represents the largest foreign direct investment in Austrian economic history to date The number of employees at the end of 2014 was 7,054.

In July 2005 Erste Bank signed the purchase agreement for the acquisition of 83.28% of the shares in Novosadska banka ad, Novi Sad, from the Republic of Serbia. With the purchase of the bank, Erste Bank is entering the Serbian market, which has considerable growth potential.

In 2007 Erste acquired 100 percent of Bank Prestige in Ukraine, its first investment in this country. In April 2013 Erste Group sells its Ukraine subsidiary for around EUR 63 million to the owners of the Ukrainian Fidobank. The sale is in line with Erste Group's strategy of focusing on customer business in the eastern part of the European Union. In recent years, Ukraine has moved further and further away from the EU politically and therefore no longer fits in with the orientation of the banking group.

In 2008 Erste Bank's foreign commitments were transferred to the newly founded Erste Group.

Bank takeovers in Central and Eastern Europe since 1997
year Bank country Share
(today) 		Price
(million euros) 		Remarks
1997
2003		 Mezőbank
Postabank		 Hungary 70.00% k. A.
400		 operates the fifth largest branch network in Hungary; 1998 Erste Bank Hungary renamed, merged with Postabank in 2003
2000 Česká spořitelna Czech Republic 99% 530 largest private customer bank in the Czech Republic; 2000: 52.07% taken over
2000 Slovenská sporiteľňa Slovakia 100.00% 425 2000: takeover of 67.2%; 2005: Call option redeemed for a further 19.99%, then 100% takeover
1997-
2002		 Bjelovarska banka
Trgovačka banka
Čakovečka banka
Riječka banka		 Croatia 69.3% k. A. Merger to form Erste & Steiermärkische Bank dd , the third largest bank in Croatia
2005 Novosadska banka Serbia 80.5% k. A.
2005 Banca Comercială Română Romania 93.6% 3,751 largest bank in Romania
2007 Bank prestige Ukraine 0% 79.4 Sold to Fidobank in April 2013
Headquarters of Erste Bank & Steiermärkische Bank dd in Zagreb , Croatia

Subsidiaries in Central and Eastern Europe

The Erste Group Bank AG holding company is active in local banks in seven countries in Central and Eastern Europe:

Consequences of the financial crisis

In August 2013, Erste Group Bank AG was the first domestic bank to pay the participation capital issued in 2009 in the amount of EUR 1.76 billion, of which EUR 1.22 billion was subscribed by the Republic of Austria and EUR 540 million by private investors was back in full. From 2009 to 2012, the Republic of Austria received annual dividend payments of EUR 98 million from Erste Group and private investors of EUR 43 million, including the aliquot dividend for 2013, which was paid after a corresponding resolution by the Annual General Meeting in June 2014, was received by the Republic Austria thus EUR 448 million and private investors EUR 198 million. In 2014 Erste Group closed with a loss of 1.44 billion euros. However, the fourth quarter of 2014 was back in the black. In 2014, Erste Group launched larger packages of bad loans. Over the year as a whole, the bank sold non-performing loans with a volume of EUR 1.1 billion (2013: EUR 0.7 billion). In the fourth quarter alone it was 575.2 million euros.

In the stress test carried out by the European Banking Authority (EBA) in 2014, Erste Group Bank AG achieved an equity ratio of 11.2% in the normal scenario and 7.6% in the negative scenario, meaning that Erste Group passed the stress test as planned. At the end of 2015, Erste Group achieved a net profit of EUR 968.2 million, 4.2% credit growth and a capital ratio of 12.3%.

Online banking George

In January 2015 Erste launched its digital banking platform “George” on the Austrian market. In the first half of 2018, George was launched in Slovakia and the Czech Republic. According to Erste Group, there were around 2.4 million users in these three markets by the end of May 2018.

Headquarters Erste Campus

In spring 2016, a total of 4,500 employees from Erste Group, Erste Bank Oesterreich and their subsidiaries in Vienna moved to the new headquarters "Erste Campus". The foundation stone was laid on June 26, 2012. The headquarters was built on the site of the former Südbahnhof and is the first major project to be completed in the “ Quartier Belvedere ”. This new district will be an urban mix of corporate offices, residential buildings, green spaces, cultural institutions, museums, shops and restaurants.

IPO, capital increases, acquisitions

Erste Group group structure

The 1997 initial public offering in Vienna was carried out by the then unified Erste Bank (see there), as were further capital increases up to 2006 and a share split. Some of these were the largest transactions of this kind ever carried out in the Vienna financial center. The capital raised was used to finance the acquisitions. On July 18, 2013, Erste Group successfully completed a capital increase of EUR 660.6 million. Erste Group shares are listed on the Vienna, Prague and Bucharest stock exchanges.

Shareholders

Shares ERSTE GROUP BANK - diagram of the development of the Vienna Stock Exchange.

As of January 31, 2018, the shareholder structure is as follows:

  • 11.2% ERSTE Foundation direct & indirect
  • 9.9% Criteria Caixa Corp, SA
  • 5.0% private investors Austria
  • 5.1% BlackRock
  • 0.7% employees
  • 48.3% institutional investors
  • 4.8% savings banks
  • 3.8% other syndicated
  • 11.2% Unknown (institutional and private investors international)

Free float: 70.6%

Others

In summer 2020 it was announced that Erste Group is the new sponsor of the esports league LEC. The stated aim of Peter Bosek, Chief Retail Officer of Erste Group, is to make the potential of esports more accessible in the regions. Synergy effects, especially in the growing e-sports market, are of interest to Erste Group.

Web links

Individual evidence

  1. ↑ a b query for bank code 20100. In: SEPA payments directory of the Oesterreichische Nationalbank (OeNB) . (Requires browser reloading.)
  2. ↑ Erste Group - Annual Financial Report 2018
  3. ↑ Erste Group: Board of Directors. In: erstegroup.com. Accessed January 2, 2020 .
  4. ↑ Erste Group Fact Sheet ( Memento of the original from September 13, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.erstegroup.com
  5. ↑ Current index rating. In: wienerborse.at. May 25, 2018. Retrieved May 25, 2018 .
  6. ↑ CEE's best bank 2017: Erste Group. In: euromoney.com. July 6, 2017, accessed July 4, 2018 .
  7. ↑ Eleven companies among the world's largest. In: oesterreich.orf.at. April 18, 2013, accessed on April 18, 2013 : “Austria is represented by eleven companies in the ranking of the world's largest 2,000 companies published on Wednesday by the US magazine“ Forbes ”. […] Erste Group Bank (672th place), […] Among the 2,000 companies there are only public limited companies, which is why Red Bull, for example, does not appear. [...] The following key figures were used to create the ranking: sales, profit, assets and market capitalization. "
  8. ↑ Erste Group among the 100 largest banks. In: derstandard.at. August 28, 2014. Retrieved August 28, 2014 .
  9. ↑ Vorarlberger Spalt takes over the Erste Group. In: erstegroup.com. September 14, 2018, accessed December 18, 2019 .
  10. ↑ a b Interactive story  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2Template: Dead Link / www.erstegroup.com  
  11. ↑ History of Erste Bank and Erste Group (accessed April 1, 2014)
  12. ↑ The state is at the first out of Der Standard, August 8, 2013
  13. ↑ [1] Der Standard, February 27, 2015
  14. ↑ [2] Format, February 27, 2015
  15. ↑ [3] EBA
  16. ↑ [4]
  17. ↑ George is the largest pan-European banking platform. Futurezone, May 23, 2018, accessed July 4, 2018 .
  18. ↑ Archive link ( Memento of the original dated May 2, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. First campus  @1@ 2Template: Webachiv / IABot / www.erstecampus.at
  19. ↑ The ERSTE GROUP BANK share - The development of prices on the Prague Stock Exchange and historical trading statistics
  20. ↑ Shareholder structure. (No longer available online.) Erste Group, September 5, 2016, archived from the original on November 10, 2016 ; accessed on September 5, 2016 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.erstegroup.com
  21. ↑ Computer games: Erste Group becomes the main sponsor of the LEC e-sports league. Retrieved July 15, 2020 .