Erste Group Bank

Erste Group is a financial services provider based in Austria. As of Dec 31 2015, Co.'s total assets amounted to Euro199,743 million and the number of customers was approximately 16.5 million. Co.'s key business is the retail business, covering the entire spectrum from lending, deposit and investment products to current accounts and credit cards. In addition to providing financial services to private individuals, Co.'s core activities also include advisory services and support for corporate clients in financing, investment and access to international capital markets, public sector funding and interbank market operations.
  • TickerEBS
  • ISINAT0000652011
  • ExchangeVienna Stock Exchange
  • SectorBanks
  • CountryAustria

Analysts

Marnik Hinnekens

TP ICAP - Europe - Morning CreditUpdate 19/11/2019 - Aroundtown - EN

Aroundtown (O/P Vs M/P): Agrees On All Share Merger With TLG Immobilien (O/P) Erste Group Bank (O/P): Issued A New Tier 2 At Mid-Swap+130bps Accor (O/P): Sale of 5.2% of Its Subsidiary AccorInvest For €204m Casino (O/P on short term bonds, M/P on long term bonds): New €2bn Syndicated Credit Line ArcelorMittal (O/P): Completes The Acquisition of Essar Steel For $5.8bn Coty (O/P): Acquisition of 51% of The Kylie Jenner Group For $600m Volkswagen (O/P): Cuts Its 2016-2020 Forecast Orange (O/P Hybrid): Considers An IPO of Its Africa B...

Research Team

The Rear-View Mirror – EME markets: Weak Istanbul, but good month in Hungary

EME Equity Market – October 2019 Market performance – ISE30 index the worst performer among our followed indices, down 10.1% in EUR terms and 7% in local currency terms. The MSCI EME index gained 3.7%, but added 6% in local currency terms. All our followed indices were in the black, bar the BET (-0.8% in EUR) and ISE30 indices (-10.1% in EUR). The BUX Index gained the most (5.9%), followed by MOEX (4.3%) and WSE (3.6%; all performance figures in EUR terms). Prague was also up in October (+1.9%) in EUR terms, while the Athens Stock Exchange index almost matched Prague’s performance, with a gain...

Research Team

Focus: transferring coverage of OTE with a BUY and a higher EUR 15.6 PT; Magnit’s 3Q19 numbers below expectations due to inventory sell-off, FY19E guidance cut; Santander Bank Polska’s 3Q19 net profit broadly in line with expectations

HEADLINES: • OTE: all about total return (BUY - transfer of coverage) • Magnit: 3Q19 numbers below expectations due to inventory sell-off; FY19E guidance cut NEGATIVE • Santander Bank Polska: 3Q19 net profit broadly in line with expectations NEUTRAL • CCC: 3Q numbers in line with prelims; inventory/sqm down 12% yoy NEUTRAL • Erste Bank: posts solid 3Q19 results NEUTRAL • OMV: 3Q19 results - in line with expectations • OMV Petrom: 3Q19 results • Orange Polska: key takeaways from the 3Q19 earnings call NEUTRAL • Atlantic Grupa: 3Q19 results show positive EBITDA dynamics POSITIVE • Famur: CEO ...

Thanks to a better fundamental star rating, ERSTE GROUP BANK AG sees an upgrade to Neutral

The independent financial analyst theScreener just awarded an improved star rating to ERSTE GROUP BANK AG (AT), active in the Money Center Banks industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 3 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date October 25, 2019, the closing price was EUR 32.28 and its expected value was estimated at EUR 30.34.

Research Team

Focus: Turkey macro: trip notes - looking better, even with the recent turmoil; Erdemir’s 3Q19 financial results - better EBITDA than expected on weak revenues; Mytilineos – weaker 3Q19, longer-term trends unchanged

HEADLINES: • Turkey macro: trip notes - looking better, even with the recent turmoil • Erdemir: 3Q19 financial results - better EBITDA than expected on weak revenues POSITIVE • Mytilineos: weaker 3Q19, longer-term trends unchanged • Kruk: 3Q19 results NEUTRAL • Alior Bank: guides on the 2H19E impact of the CJEU ruling on early consumer loan repayments NEGATIVE • Alior Bank: faces PFSA inspection on corporate lending policies • Kety: takeaways from the 3Q19 conference POSITIVE • Ciech: negative decision from the tax office regarding the VAT liability from 4Q13 NEGATIVE • CEZ: antitrust of...

Marnik Hinnekens

TP ICAP - Europe - Morning CreditUpdate 19/11/2019 - Aroundtown - EN

Aroundtown (O/P Vs M/P): Agrees On All Share Merger With TLG Immobilien (O/P) Erste Group Bank (O/P): Issued A New Tier 2 At Mid-Swap+130bps Accor (O/P): Sale of 5.2% of Its Subsidiary AccorInvest For €204m Casino (O/P on short term bonds, M/P on long term bonds): New €2bn Syndicated Credit Line ArcelorMittal (O/P): Completes The Acquisition of Essar Steel For $5.8bn Coty (O/P): Acquisition of 51% of The Kylie Jenner Group For $600m Volkswagen (O/P): Cuts Its 2016-2020 Forecast Orange (O/P Hybrid): Considers An IPO of Its Africa B...

Erste Group Bank AG: Geographical diversification and lower credit risk insulate Erste against low interest rates

Erste Bank's key credit metrics have improved thanks to the bank's efforts to de-risk its balance sheet, particularly by reducing non-performing loans in Central and Eastern Europe (CEE).

Erste Group Bank AG: Update to credit analysis

Our credit view of Erste Group Bank AG, reflecting the bank's improved asset quality, solid capitalisation and sound funding profile.

Moody's corrects rating and rating history for ISINs AT0000A14PZ1 and AT000B119680 issued by Erste Group Bank AG

Announcement: Moody's corrects rating and rating history for ISINs AT0000A14PZ1 and AT000B119680 issued by Erste Group Bank AG. Global Credit Research- 16 Aug 2017. Frankfurt am Main, August 16, 2017-- Moody's Investors Service has corrected the current rating and rating history for the Series 1257 subordinated fix-to-variable rate note due 2022 and the Series 1172 subordinated fix-to-variable rate note due 2023.

Erste Group Bank AG: Update following rating upgrade to A3/P-2

FINANCIAL INSTITUTIONS CREDIT OPINION 1 August 2017 Update RATINGS Erste Group Bank AG Domicile Vienna, Austria Long Term Debt A3 Type Senior Unsecured - Fgn Curr Outlook Positive Long Term Deposit A3 Type LT Bank Deposits - Fgn Curr Outlook Positive Please see the 

Research Team

The Rear-View Mirror – EME markets: Weak Istanbul, but good month in Hungary

EME Equity Market – October 2019 Market performance – ISE30 index the worst performer among our followed indices, down 10.1% in EUR terms and 7% in local currency terms. The MSCI EME index gained 3.7%, but added 6% in local currency terms. All our followed indices were in the black, bar the BET (-0.8% in EUR) and ISE30 indices (-10.1% in EUR). The BUX Index gained the most (5.9%), followed by MOEX (4.3%) and WSE (3.6%; all performance figures in EUR terms). Prague was also up in October (+1.9%) in EUR terms, while the Athens Stock Exchange index almost matched Prague’s performance, with a gain...

Research Team

Focus: Turkey macro: trip notes - looking better, even with the recent turmoil; Erdemir’s 3Q19 financial results - better EBITDA than expected on weak revenues; Mytilineos – weaker 3Q19, longer-term trends unchanged

HEADLINES: • Turkey macro: trip notes - looking better, even with the recent turmoil • Erdemir: 3Q19 financial results - better EBITDA than expected on weak revenues POSITIVE • Mytilineos: weaker 3Q19, longer-term trends unchanged • Kruk: 3Q19 results NEUTRAL • Alior Bank: guides on the 2H19E impact of the CJEU ruling on early consumer loan repayments NEGATIVE • Alior Bank: faces PFSA inspection on corporate lending policies • Kety: takeaways from the 3Q19 conference POSITIVE • Ciech: negative decision from the tax office regarding the VAT liability from 4Q13 NEGATIVE • CEZ: antitrust of...

Hai Thanh Le Phuong

Erste - NII Miss But Other Figures Compensate

Erste - Instant Earnings Comment Recommendation:  Accumulate (unch.) Target price (12M): EUR 37.3 (unch.) Erste reported net income came to EUR 355 mln, in line with our forecast and above market est. of EUR 335 mln. The Bank booked EUR 151 mln related to Romanian legal provisions. NII disappointed the market as it grew by only 0.7% q-o-q and 3.3% y-o-y to EUR 1,169 mln (vs. expectation of EUR 1,187 mln) mainly due to lower margins in Other Austria, CZ and Hungary. Net F&C also improved somewhat by 2.5% but higher operating income (y-o-y +5.9%) was thanks to strong trading results. Co...

Research Team

The Rear-View Mirror – EME markets: Strong month in Istanbul

EME Equity Market – July 2019 Market performance – following its strong performance in June, the best performer in July was the ISE30 again, gaining 13.1% in EUR terms and 6.2% in LCU. In EUR terms, the MSCI EME increased by 0.3% mom, and all the markets were up generally, with the exception of the WIG20, which fell 3.1% mom (-2.2% mom in LCU). The BET Index recorded a similar positive performance in both EUR and LCU terms, +4.4% mom; while the ASE Index grew 3.6% mom in EUR; and the rest of the indices stayed almost flat (Moscow’s MOEX +0.6% mom; Hungarian BUX +0.3% mom; and the Czech Republi...

Alex Boulougouris, CFA ...
  • Marta Jezewska-Wasilewska

Erste Bank: Keeping promise on ROTE (stays BUY)

In this report, we revise our financial forecasts for Erste Bank, discuss the risk of introduction of special charges for the banking sector in the Czech Republic, and reflect a EUR 230m negative one-off (in gross profit) in our 2019E expectations due to the unfavourable ruling of the Romanian court regarding building societies. We note that the discussion on sector charges in the Czech Republic restarted in late-April during the EU elections campaign, followed by some political turmoil in Austria in May, and then finally the recent news on a significant one-off loss in Romania. All of the abo...

1 director bought

A director at Erste Group Bank Ag bought 50,000 shares at 32.167EUR and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names o...

Pawel Wieprzowski, PhD

EME Strategy: Polish pension funds' holding data for 2018

The Polish pension funds (OFEs) released their annual holding reports last week, containing all of their stakes. Over the past year, OFEs’ equities allocation has remained broadly unchanged vs. end-2017, at c.85% of net assets. At the same time, the share of foreign equities in OFEs’ equities portfolio fell slightly, from 7.3% to 7.1%. The value of their equity portfolios dropped from c.PLN 153bn to c.PLN 134bn (-c.12% yoy), driven by the negative performance of the equities market (the WIG20 dropped by c.5% yoy on a total return basis, while the WIG lost 9.5% yoy), among other things. The val...

Research Team

Focus: transferring coverage of OTE with a BUY and a higher EUR 15.6 PT; Magnit’s 3Q19 numbers below expectations due to inventory sell-off, FY19E guidance cut; Santander Bank Polska’s 3Q19 net profit broadly in line with expectations

HEADLINES: • OTE: all about total return (BUY - transfer of coverage) • Magnit: 3Q19 numbers below expectations due to inventory sell-off; FY19E guidance cut NEGATIVE • Santander Bank Polska: 3Q19 net profit broadly in line with expectations NEUTRAL • CCC: 3Q numbers in line with prelims; inventory/sqm down 12% yoy NEUTRAL • Erste Bank: posts solid 3Q19 results NEUTRAL • OMV: 3Q19 results - in line with expectations • OMV Petrom: 3Q19 results • Orange Polska: key takeaways from the 3Q19 earnings call NEUTRAL • Atlantic Grupa: 3Q19 results show positive EBITDA dynamics POSITIVE • Famur: CEO ...

Research Team

Focus: keeping our BUY on Surgutneftegas’ preferred shares and our HOLD on the GDRs; Georgian banks – margin blues – sub-20% ROEs in sight already; Erste Bank – solid 2Q19 delivery, a notch above expectations

HEADLINES: • Surgutneftegas: piggy bank getting bigger... for now (preferred shares stay BUY, GDRs stay HOLD) • Georgian banks: margin blues - sub-20% ROEs in sight already • Erste Bank: solid 2Q19 delivery, a notch above expectations, well on track to deliver on promises • Garanti Bank: 2Q19 results review POSITIVE • OMV: 2Q19 results - strong net income • OMV Petrom: 2Q19 results - net income slightly below expectations • Atrium: 2Q19 - no surprises NEUTRAL • PKP Cargo: 2Q19 preliminary EBITDA misses consensus by 6% NEGATIVE • Pfleiderer: preliminary 1H19 results • EME Macro/Strategy...

Research Team

Focus: Turkey macro – going bold; EME Macro/Strategy – ECB – another wall of money coming; Akbank’s 2Q19 results highlights; Jeronimo Martins’ 2Q19 results (a notch) ahead of expectations on strong lfl in Poland

HEADLINES: • Turkey macro: going bold • EME Macro/Strategy: ECB - another wall of money coming • Akbank: 2Q19 results highlights • Jeronimo Martins: 2Q19 results (a notch) ahead of expectations on strong lfl in Poland POSITIVE • AmRest: 2Q19 preliminary sales up 33% yoy, 18% excluding M&A POSITIVE • Athens Exchange Group: small miss in 2Q19, but volume recovery improves bottom line • Magnit: 2Q19 numbers a touch above consensus POSITIVE • KAZ Minerals: 2Q19 trading update - immaterial cut in zinc guidance NEUTRAL • Novatek: 2Q19 conference call • Orange Polska: key takeaways from 2Q19 ear...

Research Team

Focus: keeping our BUY on Erste Bank, with a lower EUR 38.2 PT; Europe macro – reflections on the new EU leadership nominations; Greece macro – elections on Sunday – all you need to know; Turkey macro – inflation down

HEADLINES: • Erste Bank: Keeping promise on ROTE (stays BUY) • Europe macro: reflections on the new EU leadership nominations • Greece macro: elections on Sunday - all you need to know • Turkey macro: inflation down, the case for modest rate cuts is on • Polish banks: Parliament excludes conversion scheme from president's draft bill on mortgagors • Famur: wins PLN 67m contract from PGG for delivery of roof supporters POSITIVE • Warsaw Stock Exchange: launches project aimed at developing proprietary trading system NEUTRAL • Polish telecoms: mobile number portability in 2Q19 NEUTRAL • Sh...

Research Team

Focus: LiveChat Software’s 4Q18-19 EBITDA beats consensus by 11%; Erste Bank makes EUR 230m provision for old dispute in Romanian High Court; Polish financials – anti-usury bill draft amended, cutting maximum non-interest charges to 20%

HEADLINES: • LiveChat Software: 4Q18-19 EBITDA beats consensus by 11% POSITIVE • Erste Bank: makes EUR 230m provision for old dispute in Romanian High Court NEGATIVE • Polish financials: anti-usury bill draft amended, cutting maximum non-interest charges to 20% NEGATIVE • Play Communications: signs preliminary share purchase agreement for 3S Group NEGATIVE • Richter: AbbVie to acquire Allergen for USD 63bn NEUTRAL • Raiffeisen Int.: sees maximum EUR 15m potential provision related to Romanian building societies NEUTRAL • EME Strategy: MSCI - Kuwait upgraded conditionally to EM (broadly in line...

Thanks to a better fundamental star rating, ERSTE GROUP BANK AG sees an upgrade to Neutral

The independent financial analyst theScreener just awarded an improved star rating to ERSTE GROUP BANK AG (AT), active in the Money Center Banks industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 3 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date October 25, 2019, the closing price was EUR 32.28 and its expected value was estimated at EUR 30.34.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

Erste Group Bank - AGM 15 May 2019

Item 4: Since there is no vote on Management Board members' remuneration in Austria, we take the opportunity to voice our concerns regarding the remuneration system currently in place at Erste Group Bank which we consider has several shortcomings: The target amounts for the performance-linked remuneration have not been disclosed and the performance criteria and their weighting are insufficiently disclosed. Furthermore, there is no separate long-term incentive (LTI) in place for Management Board members. Although we consider the absolute amounts paid to the Management Board members as acceptabl...

Erste Group – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

EU and UK Financials remain actionable Our outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains positive and we continue to expect higher equity prices going forward. Below we highlight several new developments which give us additional confidence in our outlook, including but not limited to continued price and RS improvements for UK/European Financials. • Actionable Sector: Financials. Today's stock recommendations go beyond UK and European Financials, however these regions are the primary focus due to a plethora of attractive setups. In today's report we reiterate our 3/21...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

As support levels continue to hold for the MSCI ACWI and S&P 500, our neutral but constructive outlook remains. Additionally, we reiterate our expectation for more consolidation and volatility. In today's report we highlight actionable stocks within countries that are displaying bullish price and relative strength trends. • Asia/Pacific. In Japan, the TOPIX continues to exhibit leadership characteristics. Stay overweight. Broadly speaking, global Consumer Staples stocks are lagging, but Japan is the exception. Hong Kong's Hang Seng Index also remains on bullish footing... see pages 2 and 5-11...

David Nikoski

Int'l Insights: Bullish Stocks

• European banks present a pullback opportunity. The industry's two-month decline is testing support, and individual names are beginning to inflect higher, ranging from UBS Group (UBS) and Commerzbank (CBK-DE) to Intesa Sanpaolo (ISP-IT) and Deutsche Bank (DB). • French banks are particularly attractive. Both BNP Paribas (BNP-FR) and Societe Generale (GLE-FR) retraced to the 9-year base patterns they broke out from earlier this year. Credit Agricole (ACA-FR) is just beginning to break out from a similar pattern. Buy. • This is a reiteration of our original recommendation on Oct. 18, 2016. F...

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