GB00_erste lage_E - Erste Group

LARGE CORPORATE CUSTOMERS
Structure of international credit risk of Erste Bank AG
Share Provisioned Risk Coverage
in EUR million Exposure in % exposure provisions ratio
Austria, guaranteed 690 3.3%
Industrialised countries 15,739 75.9% 172.0 100.2 58.3%
Extended home market , 1,819 8.8% 4.0 2.1 51.6%
Emerging markets 2,338 11.3% 106.8 42.4 39.7%
Thereof:
Asia 1,056 5.1% 94.5 34.9 36.9%
Latin America 654 3.2% 1.8 0.2 9.0%
Russia 89 0.4% 7.6 4.3 56.1%
Other 539 2.6% 3.0 3.1 105.6%
Developing countries 141 0.7% 42.7 37.0 86.5%
Total 20,727 100% 325.6 181.7 55.8%
* Croatia, Czech Republic, Hungary, Poland, Slovakia, Slovenia
This breakdown represents the share of Erste Bank AG in the Group’s international exposure. Un-
like the 1999 Annual Report, in the present report the amount of risk was not inflated by including
unused commitment or by double-counting.
99% of the credit risk arising from interbank loans and advances and other trading assets arises
from partners in industrialised countries and the extended home market in Central and Eastern
Europe, and therefore present a low risk of default.
83% of the rest of Erste Bank’s international risk portfolio is also concentrated in these country
categories (including guaranteed volume from Austria). In the Emerging Markets new business
was conducted in countries with investment-grade ratings and short-term business with banks
and governments.
This risk policy paved the way for a successful financial year with no new country risk costs. Writ-
ing off fully provisioned loans and advances or parts thereof has reduced not only the volume of
loans for which provisions were made, but also the level of the provisions themselves.
The provisioned exposure of Erste Bank AG at the end of 2000 amounted to EUR 325.6 million,
consisting of about EUR 180.3 million (55%) of non-performing loans and EUR 145.3 million (45%)
of performing loans deemed to involve potential risk.
52 Erste Bank 2000