FriedlResearch has Published the Q3-2013 Company Report of Erste Group Bank AG

Lifestyle & TravelPersonal Real Estate ♦ Published: October 8, 2013; 19:59 ♦ (Vindobona)

This report contains in depth information and data about Erste Group and its operations and markets. It contains a company overview, business and strategy description, financial ratios, valuation & forecast data, SWOT analysis, plus data on key events.

FriedlResearch has Published the Q3-2013 Company Report of Erste Group Bank AG / Picture: © FriedlNet - Erste Group Bank AG Report

FriedlResearch’s "Erste Group Bank AG - SWOT Analysis & Company Report" provides

- a company overview, including its strategy and its shareholder structure,
- economic indicators for Austria and Central- and Eastern Europe,
- an investigation of the business and competitive environment in Austria and Central- and Eastern Europe,
- product and service offerings,
- detailed financials including share information, ratings, balance sheet, income and CF statements for the past 5 years,
- key financial figures including the most important ratios, risk provisions, EBIT and last quarter results,
- valuation and forecast data for the next 3-4 years,
- SWOT analysis,
- a banking industry and company outlook,
- plus information on key corporate actions and events affecting the company.


• Examines and identifies key information and issues about "Erste Group Bank AG" for business intelligence requirements
• Studies and presents the company's strengths, weaknesses, opportunities (growth potential) and threats (competition).
• Strategic and operational business information is objectively reported
• Provides analysis on financial ratios of the company
• The profile also contains information on business operations, company history, major products and services, prospects, key competitors, key management, locations and subsidiaries

Reasons To Get Report

• Quickly enhance your understanding of Erste Group
• Gain insight into the marketplace and a better understanding of internal and external factors which could impact the industry
• Increase business/sales activities by understanding your competitors’ businesses better
• Recognize potential partnerships and suppliers
• Obtain yearly profitability figures

Key Highlights

With 17 million customers, Erste Group is the third-biggest lender in Central- and Eastern Europe. The Vienna-based bank is specialized in SME and retail banking. Despite relatively high-risk provisions, Erste Group recorded profits again in 2012. In the first two quarters of 2013, the banking group underlined its profitability.

However, Erste Group still faces a number of uncertainties. Besides Southern Europe, the CEE region was a highly volatile market for Western banks after 2008. However, the history and the current situation is a different one. It pays to take a closer look at the region, which proves very heterogeneous. In Austria, domestic banks recognized soon that there is hardly any further growth potential. From the late 1990s to 2008, the CEE region was the growth engine for Austria and particularly for Austrian banks. Surely, history does not repeat itself. Nevertheless, many economists and analysts still regard Central and Eastern Europe as most promising market for the Austrian banking industry. As a result, not only Erste Group´s per-formance is still linked very closely to the macro-economic situation in the CEE region. In addition, the main competitors UniCredit Bank Austria and Raiffeisen Bank International have been in and out the limelight during the last 20 years.

Due to the low interest rates, the net interest income is under pressure. After Erste Group has recorded substantial risk provisions in Romania and Hungary, the banking group did re-cover last year. Furthermore, the bank´s operating cost structure has been optimized sus-tainably in the last years. Nevertheless, the situation remains tense and the frame conditions are challenging. Since 2009, Erste Group´s EBIT has been falling steadily. Regarding the net profits, the performance is rather ambiguous. In the next few years, we expect only marginal improvements.

From a strategic point of view, Erste Group´s market position is not easy. On the one hand, Erste Group is forced to improve its equity base. On the other hand, there is a significant growth pressure. The Vienna-based lender has no market presence in the fastest growing markets Russia, Poland and Turkey. Hence, the next years will prove difficult for Erste Group. At least, there is a significant catch-up potential in countries like Romania. The performance of the subsidiaries in Slovakia and the Czech Republic is satisfying. Medium-sized acquisitions in Southeastern Europe are likely.

This year, Erste Group is expected to record smaller net income and operating profits. In the course of 2014, the frame conditions for the banking industry in CESEE are expected to change significantly. In the meantime, Erste Group will have the opportunity to carry out repositioning measures and internal structural measures.

For more information visit the report page.

About FriedlResearch

FriedlResearch is a Vienna based market research company, which helps foreign investors, corporate executives and financial professionals to understand the dynamic markets and companies of Austria and the Central- and Eastern European countries Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Russia, Slovakia, Slovenia and the Ukraine.

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