GB00_erste lage_E - Erste Group

LARGE CORPORATE CUSTOMERS
Erste Bank AG as the parent company makes the biggest contribution to the above-mentioned
risk structure. The volume of loans with low risk makes up 85.6% of the risk volume. Doubtful
loans, on the other hand, only account for 2.1% of the portfolio and are completely covered by
existing collateral and risk provisions.
Similar risk structure is exhibited by Salzburger Sparkasse, which, particularly in 1997 and 1998
when it was coming in line with Erste Bank’s risk provision policy, allocated correspondingly large
risk provisions.
By the sheer nature of its business purpose, s Bausparkasse finances 95% of its lending volume
for consumer housing measures. Thanks to the type of business it does and the fact that practically
all of its financing is mortgage-backed, as of 31 December 2000 only 1% of the risk volume
of s Bausparkasse was covered by risk provisions.
The IMMORENT Group is a household name in property leasing in Austria. Because it is very selective
about its lessees and negotiates its lease agreements accordingly, the IMMORENT Group
has a low-risk profile. Adequate risk provisions have been set up to handle the few risk cases
encountered.
EBV-Leasing mostly offers car leases for consumers and other selective sectors without a heavy
concentration of business in any one group. Owing to the structure of its customer base and the
low risk involved in car leasing, 98% of EBV-Leasing’s risk volume is classified as low risk.
50 Erste Bank 2000