GB00_erste lage_E - Erste Group

37) Segment reporting
The aim of segment reporting is to present a comprehensive overview of the Erste Bank Group’s
earnings components according to
❚ business segments and
❚ geographical markets.
The basis for calculation is the internal profit contribution report by business areas. Income com-
prises net interest income determined based on opportunity cost (market spread, mismatch), net
commission income, net trading result, other operating results and the income on national equity
allocated to the segments according to their risk-weighted assets.
Administrative expenses are derived from activity-based costing and comprise product costs,
indirect costs and general overhead. Actual risk costs as reflected in the Income Statement are
used to present the risk situation of the financial year.
The earnings contributed by Česká spořitelna for five months are allocated to the corresponding
segments.
Reporting according to business segment covers the following segments:
❚ Retail and Real Estate (activities in retail banking, small and medium-sized
corporate customers, and real estate finance in Austria and Central Europe)
❚ Large Corporate Customers (key accounts in industry, trade and
service sectors as well as international business outside Central Europe)
❚ Trading and Investment banking (investment banking, treasury, balance sheet management)
❚ Asset Gathering (investment funds, portfolio management, insurance business) and
❚ Corporate Centre (fixed assets, other equity holdings, consolidating items).
Segment reporting according to geographical markets is based on the following breakdown:
❚ Austria
❚ Central Europe (Croatia, Czech Republic, Hungary, Slovakia, Slovenia)
❚ The rest of Europe
❚ North America
❚ Central and South America
❚ Asia
❚ Others (including International Organisations)
Attribution to the different segments is determined by the country code (ISO code) assigned to
each customer based on its place of residence.
Erste Bank 2000 101