GB00_erste lage_E - Erste Group

Holdings of Erste Bank in Central Europe
Country Erste Bank principal subsidiaries Total assets
(% stake; part-owned since) (EUR approx.)
Hungary Erste Bank Hungary Rt. EUR 702 million
99.3%; December 1997 55 branches
Czech Republic Česká spořitelna, a.s. EUR 12.3 billion
52.07%, February 2000 707 branches
Croatia Erste & Steiermärkische Bank d.d. EUR 400 million
40.6%; presence in Croatia
since October 1997
30 branches
Slovak Republic Slovenská sporiteľňa, a.s. EUR 4.2 billion
87.18%; January 2001 530 branches
Other holdings in Central Europe
Slovak Republic Istrobanka a.s. EUR 606 million
10%; February 1994 32 branches
Czech Republic
With the purchase of 52.07% of Česká spořitelna, a.s. in the first quarter of 2000 for EUR 530
million, Erste Bank took its initial, crucial step on the road to becoming the leading provider of
financial services in Central Europe. Česká spořitelna, a.s. is the largest bank in the Czech Republic
by number of branches and customers as well as by deposits. With market shares of 34%
in customer deposits, 34% in lendings, 21% in mortgage loans and 79% in ATM cards and credit
cards, Česká spořitelna, a.s. is easily the market leader in the retail business. Another core activity
is the business with small and medium-sized corporate clients in the Czech Republic.
The management was restructured, operating and service units were linked to Erste Bank and
a transformation plan was swiftly developed that includes, among other elements, steps promoting
business development, process optimisation and cost reductions. Česká spořitelna, a.s. was
thus speedily and successfully integrated with Erste Bank Group.
By adjusting the controlling processes, restructuring branches, and taking steps to focus on
meeting customers’ needs, a move was introduced away from the past focus on products and
towards a customer-centred approach.
Small, uneconomical locations were closed. By the end of 2000 the number of branches fell
from 850 to 707; staff size of Česká spořitelna, a.s. declined from 15,270 to 14,200 employees.
Further reductions are planned for the next several years.
The second half of 2000 brought an improvement in the economic setting; deposits grew by
10% and commission income continued to rise.
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