GB00_erste lage_E - Erste Group

Information for shareholders
The earnings per Erste Bank share for the 2000 fiscal year amounted to EUR 4.21. This represents an increase
of 12.6% compared to the previous year (1999: EUR 3.74). The Erste Bank share closed the year
2000 on a price-earnings multiple of 11.4x. On the same date the Austrian Traded Index (ATX) at large recorded
a P/E of 11.2x.
A dividend of EUR 1.24 per share, unchanged on last year, will be recommended to the annual general
meeting on 8 May 2001. This represents a dividend yield of 2.6% based on Erste Bank’s closing share price
of EUR 48.00 at the year end, visibly surpassing the weighted average of 2.4% for the 24 shares that constituted
the ATX on 31 December 2000.
To receive the annual financial statements of Erste Bank AG (based on Austrian accounting standards
and available in German only) contact Investor Relations, Graben 21, A-1010 Vienna or investor.relations@
erstebank.co.at.
The Erste Bank share
After reaching its low for the year 2000 of EUR 40.85 on 2 February, the Erste Bank share recovered strongly
upon the acceptance of Erste Bank’s bid to acquire a majority interest in Česká spořitelna, a.s. The price of
the Erste Bank share moved within a narrow margin during the second quarter of 2000. Eventually, the very
good business results reported by Erste Bank in the first half of the year and the announcement of the capital
increase drove the share price up significantly in the third quarter. On 15 September 2000 Erste Bank’s
share reached its high for the year, at EUR 51.30.
In order to support the expansion plans in Central Europe and finance its e-business activities, Erste Bank
carried out a capital increase in October 2000. In this secondary public offering (SPO), Erste Bank issued
6 million new shares. At a price of EUR 47 per share, the bank thus gained EUR 272 million of new capital
(net after issuing expenses and tax).
The negative trend on international equity markets caused by vast price losses of telecommunications and
technology issues, combined with downgradings of some European bank shares in the fourth quarter of 2000,
pulled the Erste Bank share lower. In December the announcement that Erste Bank would buy Slovenská
sporiteľňa, a.s. provided a positive impetus for the share price.
The Erste Bank share performed exceptionally well in 2000, ending the year on a price of EUR 48.00,
(up 9.1%) giving Erste Bank the fifth strongest price gain in the ATX.
Erste Bank’s share outperformed the ATX and the DJ Euro Stoxx Bank index (a key benchmark for bank
shares) since the beginning of 2000, since the flotation in December 1997 as well as since the capital increase
in October 2000 (see table below).
The strong performance of the Erste Bank share continued in the first quarter of 2001. The signing in the
first half of January of the agreement to acquire a majority stake in Slovenská sporiteľňa, a.s. was well-received
by investors. An additional important boost to performance came from the inclusion of the Erste Bank
share in the MSCI Standard Index Austria in February 2001, which lifted the share price sharply. Erste Bank’s
share price attained a new two-year high of EUR 58.40 in March 2001.
Share price to the end of 2000
Since IPO 1) Since Since SPO 2)
in Dec 1997 1 Jan 2000 in Oct 2000
Erste Bank share + 8.3% + 9.1% + 2.1%
ATX (17.7%) (10.4%) (8.1%)
DJ Euro Stoxx Bank Index – * + 3.8% (5.3%)
* Comparison since IPO is not possible as Erste Bank has been included
in this index only since 16 January 1998.
1) Initial public offering
2) Secondary public offering
134 Erste Bank 2000