GB00_erste lage_E - Erste Group

CORPORATE CENTRE
The Euro2 Programme Management was set up in early 2000 in order to prepare for timely
and professional system conversion and the introduction of euro notes and coins within Erste
Bank, the Group and other savings banks. Euro-fitness of all systems is to be achieved by end
of June 2001. Up to the end of October 2001, efforts will focus on staff training and detailed
transition planning including the establishment of a coordination and support unit to provide logistic
support for Erste Bank itself, the Group and other savings banks when the changeover is to
be effected at the outset of the new year.
The Cost-Cutting Programme
At the beginning of 1999, Erste Bank launched a cost-cutting programme aimed at achieving cost
savings in the amount of EUR 76 million by the end of 2001. The 1999 savings target of EUR
18 million was outperformed by EUR 1 million thanks to the swift implementation of the measures.
In 2000, the projected target of EUR 46 million was attained in spite of increased spending
on staff and key projects (Česká spořitelna, a.s., easd+, implementation of the fourth core
strategy and foundation of ecetra). EUR 12 million of total projected cost savings of EUR 76 million
will be reflected in the results for 2001.
The fourth core strategy of Erste Bank: e-business
In March 2000 the three core strategies defined at the time of the initial public offering of Erste
Bank in December 1997 were rounded out by a fourth: Positioning the Bank in e-business and
e-finance. By taking advantage of the new electronic banking channels in addition to the comprehensive
personal advice available, Erste Bank customers now have the opportunity to reach their
bank around the clock.
ecetra Central European e-Finance AG was set up in March 2000 to build and operate the leading
e-finance platform servicing the capital markets of Central and Eastern Europe. Since December
2000, Erste Bank customers can buy securities via this platform and retrieve information on
financial issues. Investment will amount to EUR 30 million; the breakeven is to be reached in
2003. At the end of 2000, ecetra had 71 people on its payroll.
In 2000 Erste Bank took landmark steps to introduce new distribution channels and services for
customers and promote greater reliance on e-business. The reward for these efforts is clearly
visible in the transaction statistics: The share of transactions employing new service channels,
mainly the Internet and automated banking machines, has increased from 15% in 1997 to 40%
in 2000.
62 Erste Bank 2000
Successful implementation
of cost-cutting
programme