GB00_erste lage_E - Erste Group

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MANAGEMENT REPORT AND FINANCIAL REVIEW Other operating results include a valuation gain from the transfer of former Erste Bank branches in Styria to Steiermärkische Bank und Sparkassen AG in the amount of EUR 55.6 million (in 1999 the valuation gain from transferring branches came to EUR 44.0 million). This notwith- standing, the figure for 2000 is negative at EUR –35.1 million, because it includes not only amortisation of goodwill from the acquisition of Česká spořitelna, a.s., but also a number of expenditures that will be explained in detail later on. After subtracting taxes on income, which resulted mainly from deferred tax liabilities and minority interests, the Group’s net profit for 2000 came to EUR 191.8 million, an increase of 16.5% year-on-year. Operating results and net profit after minorities (in EUR million) 330.6 133.4 The return on equity (ROE)—calculated as net profit after minorities as a percentage of average equity less the Bank’s own shares in the portfolio—reached 12.3% in 2000, which constitutes another improvement over the excellent figure posted the previous year despite the goodwill amortisation and funding costs incurred by acquiring Česká spořitelna, a.s., which isn’t generating enough income yet to compensate. General information on the 2000 Consolidated Financial Statements Since 1999 Erste Bank has been preparing its accounts in accordance with International Account- ing Standards (IAS). 350.7 (+ 6.1%) 164.6 (+ 23.4%) 1998 1999 2000 w/ ČS 473.7 (+ 35.1%) 191.8 (+ 16.5%) 2000 w/o ČS (pro forma) 407.9 (+ 16.3%) 201.1 (+ 22.2%) In the course of implementing the savings bank strategy, Erste Bank’s branches in Styria were spun off and transferred to Steiermärkische Bank und Sparkassen AG following the example set in the provinces of Upper Austria, Salzburg and Carinthia. In return, Erste Bank received a 14% 12 Erste Bank 2000 ❚ Operating results ❚ Net profit after minorities
❚ Net interest income ❚ Net commission income ❚ Net trading result stake in the savings bank. This transfer involved a balance sheet volume of EUR 0.6 billion (mostly loans and advances to customers and amounts owed to customers). This had no material impact on the individual items in the 2000 Consolidated Income Statement, since pursuant to IAS the results of this business segment are included until the fourth quarter of 2000. The 52% stake in Česká spořitelna, a.s. was included in the Consolidated Financial Statements of Erste Bank effective 3 August 2000, the day the purchase agreement was concluded (closing day). Hence, the Consolidated Balance Sheet contains the balance sheet figures for Česká spořitelna, a.s. as of this date and the individual items in the income statement reflect the results for the period from August to December 2000. First-time consolidation of Česká spořitelna, a.s. seriously restricts the ability to compare individual items in Erste Bank’s Consolidated Balance Sheet and Income Statement with the previous year’s figures. In the following review, wherever appropriate the rates of change are also indicated excluding the effects of the acquisition of Česká spořitelna, a.s. Earnings performance Operating income Total operating income (the sum of net interest income, net commission income and net trading result) was up 25.8% year-on-year to EUR 1,474.7 million. After adjusting for the effects of acquiring Česká spořitelna, a.s., the increase came to 5.8%, primarily owing to the change in net interest income (adjusted increase of 5.2%) and net commission income (adjusted increase of 10.3%). Structure of operating income (in EUR million) 732.7 306.5 133.0 736.3 322.4 113.7 1998 1999 2000 w/ ČS Erste Bank 2000 13 924.0 423.4 127.4 2000 w/o ČS (pro forma) 774.5 355.5 110.6
Page 1 and 2: The leading financial services prov
Page 3 and 4: Key figures of Erste Bank share 200
Page 5 and 6: 2000 Annual Report We are Erste Ban
Page 7 and 8: September ❚ The 24 Styrian branch
Page 9 and 10: from left to right Franz Hochstrass
Page 11 and 12: The third factor, the effectiveness
Page 13 and 14: ution channels. The complete classi
Page 15: ❚ Operating income ❚ General ad
Page 19 and 20: ❚ Securities transactions ❚ Bui
Page 21 and 22: greater, since some of the staff cu
Page 23 and 24: ▲ Cost-income ratio ■ ROE ❚ L
Page 25 and 26: ❚ Amounts owed to credit institut
Page 27 and 28: ▲ Solvency ratio ■ Core capital
Page 29 and 30: Results by business segment The act
Page 31 and 32: Retail and Real Estate
Page 33 and 34: Innovative advisory tools now also
Page 35 and 36: Volume has risen further The market
Page 37 and 38: Strong, united identity conveyed by
Page 39 and 40: Holdings of Erste Bank in Central E
Page 41 and 42: Erste Bank— a seal of quality Hun
Page 43 and 44: Asset Gathering
Page 45 and 46: Erste Bank in the top tier of asset
Page 47 and 48: Strong rise in insurance premium in
Page 49 and 50: The Large Corporate Customers segme
Page 51 and 52: Positive trend in International Bus
Page 53 and 54: Domestic credit risk by sectors A g
Page 55 and 56: Foreign credit risk by sectors Inte
Page 57 and 58: As a supplement to the general cred
Page 59 and 60: The Trading and Investment Banking
Page 61 and 62: However, lower income from trading
Page 63 and 64: Corporate Centre
Page 65 and 66: Harmonisation of EDP systems enhanc
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Leading-edge technology for Erste B
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2000 Consolidated Financial Stateme
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II. Group Income Statement of Erste
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IV. Cash Flow Statement in EUR Mio
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During the reporting period 52.07%
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Scope of Consolidation The impact o
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While the agreement is in force (un
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Principles of Consolidation Account
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All realised and unrealised gains f
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In the case of operating leases (in
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13) Loans and advances to credit in
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17) Investments available for sale
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20) Other assets in EUR million 200
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a) Employee benefits Total provisio
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lower limits defined above, a gradu
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As all own shares held in the Compa
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The above figures do not include th
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In addition to the above-mentioned
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Sundry operating expenses are compr
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37) Segment reporting The aim of se
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Asset Gathering Corporate Center To
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38) Additional information Assets a
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Organisation of risk management at
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Risks at Erste Bank Market risk Flu
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In March 2000 Erste Bank launched a
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Open fixed-income positions not att
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Nominal amount by remaining maturit
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Česká spořitelna, a.s. is the de
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Delegated by the Employee Council G
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Percentage Investment Net Fin. stat
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Percentage Investment Net Fin. stat
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Trading assets All trading assets a
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Other operating results This item i
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It is our conviction that the Finan
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Report of Supervisory Board During
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Prague Hlavní nádrazí (Central R
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Erste Bank share is included in fol
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GB00_erste lage_E - Erste Group

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