GB00_erste lage_E - Erste Group

▲ Solvency ratio
■ Core capital ratio
Solvency and core capital ratios of the Erste Bank Group under Banking Act
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
▲
■
6.4%
▲ ▲ ▲
11.2% 11.1% 11.0%
■ ■ ■
10.8%
6.1% 6.1% 6.3%
1996 1997 1998 1999 2000
Outlook for 2001 and recent developments
In the autumn of last year Erste Bank beat out international competitors vying for a stake in Slovenská
sporiteľňa, a.s., the largest retail bank in the Slovak Republic with just under 1.8 million
customers. On 11 January 2001 Erste Bank signed an agreement to purchase 87.18% of the
share capital of the Slovak savings bank Slovenská sporiteľňa, a.s., thereby achieving the Central
Europe objective that Erste Bank set when it went public in 1997 to become the leading financial
services provider in the region.
The integration of Slovenská sporiteľňa, a.s. will require substantial resources and involve
not only funding costs despite the capital increase conducted by Erste Bank in autumn 2000,
but also restructuring measures which will not be offset by income in the short term. Nevertheless,
after restructuring in 2001, a year during which no major increase in earnings is anticipated,
we expect to see the positive trend in solid earnings continue as of 2002.
Due to the acquisition of Slovenská sporiteľňa, a.s., the objectives previously set by Erste
Bank for its most crucial financial ratios, e.g. raising ROE to at least 14% and improving the costincome
ratio to 66% by 2002, were simply postponed by one year and are to be achieved by 2003.
Erste Bank 2000 23
▲
■
11.2%
6.7%