GB00_erste lage_E - Erste Group

The Trading and Investment Banking segment comprises the Investment Banking unit and the
Treasury unit, which includes balance sheet management.
Change
in EUR million 2000 1) 1999 in %
Net interest income
Risk provisions
37.8 39.6 (4.5)
for loans and advances (0.2) 0.3 (166.7)
Net commission income 22.2 18.7 18.7
Trading result 75.8 71.8 5.6
General administrative expenses (93.3) (83.8) 11.3
Other operating results (1.7) (10.1) (83.2)
Pre-tax profit for the year
Share in pre-tax profit
40.6 36.5 11.2
for the year 14.7% 15.1% 0
Average risk-weighted assets 4,858.7 5,756.9 (15.6)
Average attributed equity 232.8 270.0 (13.8)
Share in equity 12.5% 19.9% 0
Cost-income ratio
ROE based on pre-tax profit
68.7% 64.4% 0
for the year
Contribution of business
with savings banks to
17.5% 13.5% 0
pre-tax profit for the year
Contribution of Česká spořitelna, a.s.
22.2 7.7 188.3
to pre-tax profit for the year 6.5 – 0
1) incl. 5 months Česká spořitelna, a.s.
The Trading and Investment Banking segment enhanced earnings by 11% even though volatility
increased throughout the year. Return on equity improved from 13.5% in 1999 to 17.5% in
the reporting period. A slight decrease in net interest income was more than offset by substantially
higher commission income from a series of initial public offerings. The increase in the costincome
ratio from 64.4% to 68.7% reflects higher administrative expenses.
Erste Bank 2000 55