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

1 director bought

A director at Erste Group Bank Ag bought 150,000 shares at 34.349EUR and the significance rating of the trade was 76/100. 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 ...

Derya Guzel

Erste Group 1Q 2019: Interest Rate Hikes and Lending Growth Drive 1Q Results

Erste Group reported first-quarter results of EUR 377 million compared with EUR 336 million in the same period last year, driven by improved interest rates as well as lending growth in most of its core markets. The beneficial operating environment, supported by real wage growth and low unemployment, is expected to continue in 2019, keeping credit costs at a benign level while improved interest rates and loan growth support income generation going forward. We maintain our fair value estimate of E...

Research Team

Focus: transferring coverage of Electrica (BUY), Transelectrica (HOLD) and Transgaz (HOLD); Yapi Kredi’s 1Q19 highlights; Erste Bank posts 6% beat vs. net profit estimates in 1Q19, due to LLPs releases; Komercni Banka posts solid 1Q19

HEADLINES: • Romanian utilities: entering murky waters (Electrica stays BUY, Transelectrica & Transgaz stay HOLD – transfer of coverage) • Yapi Kredi: 1Q19 highlights POSITIVE • Erste Bank: posts 6% beat vs. net profit estimates in 1Q19, due purely to LLPs releases • Komercni Banka: posts solid 1Q19 NEUTRAL • Coca-Cola Icecek: 1Q19 review - weak numbers, with 5% beat on EBITDA; Pakistan issues continue NEUTRAL • BRD-GSG: weaker pre-provision profitability, but write-backs support bottom line • OMV: 1Q19 results, in line • OMV Petrom: 1Q19 results, no surprises • MOL: 1Q19 results • Myti...

Research Team

The Rear-View Mirror – EME markets: Greek equities stand out in April

EME Equity Market – April 2019 Market performance – Greece up 7.2% mom in EUR terms in April 2019. The MSCI EME gained 2.4% in April, and was outperformed by the Greek ASE index, which rose 7.2%. The second-best performing market in EME was Romania, with the BET index up 5.3% mom, followed by the Russian MOEX (+4.1% mom), the Polish WIG20 (+1.4% mom) and the Hungarian BUX (+1.3% mom). The Czech PX index was flat mom; while the Turkish ISE30 dropped by 4.5% mom, but this was related to the depreciation of the TRY against the EUR, as the index was up 1.2% mom in TRY terms.

Research Team

Focus: Turkey macro - borrowing cost update; Kruk’s solid 1Q19 delivery; Hellenic Bank’s full-year results post Coop acquisition and capital issue; Novatek’s 1Q19 results - earnings better, although FCF not as strong as expected

HEADLINES: • Turkey macro: borrowing cost update • Kruk: solid 1Q19 delivery POSITIVE • Hellenic Bank: full-year results post Coop acquisition and capital issue • Novatek: 1Q19 results - earnings better, although FCF not as strong as expected NEUTRAL • Lenta: 1Q19 revenues up 6% on 5% lfl growth NEUTRAL • X5: 1Q19 results above expectations POSITIVE • NIS: 1Q19 results review - weak, as expected NEUTRAL • Bank Pekao: reaches agreement with the trade unions on the group layoffs announced previously NEUTRAL • Erste Bank: supervisory board approves new management board members NEUTRAL • Moscow ...

Erste Group Bank AG: Semiannual update

FINANCIAL INSTITUTIONS CREDIT OPINION 22 May 2017 Update RATINGS Erste Group Bank AG Domicile Vienna, Austria Long Term Debt Baa1 Type Senior Unsecured - Fgn Curr Outlook Stable Long Term Deposit Baa1 Type LT Bank Deposits - Fgn Curr Outlook Stable Please see the 

Erste Group Bank AG: Semiannual update

FINANCIAL INSTITUTIONS CREDIT OPINION 21 December 2016 Update RATINGS Erste Group Bank AG Domicile Vienna, Austria Long Term Debt Baa1 Type Senior Unsecured - Fgn Curr Outlook Stable Long Term Deposit Baa1 Type LT Bank Deposits - Fgn Curr Outlook

Derya Guzel

Erste Group 1Q 2019: Interest Rate Hikes and Lending Growth Drive 1Q Results

Erste Group reported first-quarter results of EUR 377 million compared with EUR 336 million in the same period last year, driven by improved interest rates as well as lending growth in most of its core markets. The beneficial operating environment, supported by real wage growth and low unemployment, is expected to continue in 2019, keeping credit costs at a benign level while improved interest rates and loan growth support income generation going forward. We maintain our fair value estimate of E...

Research Team

The Rear-View Mirror – EME markets: Greek equities stand out in April

EME Equity Market – April 2019 Market performance – Greece up 7.2% mom in EUR terms in April 2019. The MSCI EME gained 2.4% in April, and was outperformed by the Greek ASE index, which rose 7.2%. The second-best performing market in EME was Romania, with the BET index up 5.3% mom, followed by the Russian MOEX (+4.1% mom), the Polish WIG20 (+1.4% mom) and the Hungarian BUX (+1.3% mom). The Czech PX index was flat mom; while the Turkish ISE30 dropped by 4.5% mom, but this was related to the depreciation of the TRY against the EUR, as the index was up 1.2% mom in TRY terms.

Derya Guzel

Morningstar | All Aboard the Money Laundering Train; New Reports Implicate More European Banks

Over the past days a consortium of investigative newspapers, online portals, and television programs revealed a web of money laundering activities flowing through the European banking system, which lay bare a different scale and urgency of the problem of anti-money laundering controls within most banks as well as regulators than previously acknowledged. Of the banks named thus far to be involved we cover Danske, Nordea, Swedbank, Raiffeisen, Erste, RBS (acquired the unit in question from ABN in 2008), ING, and Deutsche Bank. While other Nordic banks as well as other banks in our coverage have ...

Derya Guzel

All Aboard the Money Laundering Train; New Reports Implicate More European Banks

Over the past days a consortium of investigative newspapers, online portals, and television programs revealed a web of money laundering activities flowing through the European banking system, which lay bare a different scale and urgency of the problem of anti-money laundering controls within most banks as well as regulators than previously acknowledged. Of the banks named thus far to be involved we cover Danske, Nordea, Swedbank, Raiffeisen, Erste, RBS (acquired the unit in question from ABN in ...

Research Team

The Rear-View Mirror – EME markets: ASE rallied in February

EME Equity Market – February 2019 Market performance – ASE Index up 11.5% mom in February. The ASE index outperformed its rivals in February, rising by 11.5%, following a mom gain of 3.5% in January. Bucharest was the second-best performer, up 10.2% in February, while Prague’s PX recorded a mom gain of 3.2%. The MSCI EME was in correction mode in February, losing 1.6% mom, following January’s double-digit growth of 11.3% mom; while the MOEX and BUX both lost 1.3% mom in February; and the Turkish ISE30 was down 2.1% mom. Last but not least, the worst performer was the WIG20, which recorded a lo...

1 director bought

A director at Erste Group Bank Ag bought 150,000 shares at 34.349EUR and the significance rating of the trade was 76/100. 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 ...

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 Electrica (BUY), Transelectrica (HOLD) and Transgaz (HOLD); Yapi Kredi’s 1Q19 highlights; Erste Bank posts 6% beat vs. net profit estimates in 1Q19, due to LLPs releases; Komercni Banka posts solid 1Q19

HEADLINES: • Romanian utilities: entering murky waters (Electrica stays BUY, Transelectrica & Transgaz stay HOLD – transfer of coverage) • Yapi Kredi: 1Q19 highlights POSITIVE • Erste Bank: posts 6% beat vs. net profit estimates in 1Q19, due purely to LLPs releases • Komercni Banka: posts solid 1Q19 NEUTRAL • Coca-Cola Icecek: 1Q19 review - weak numbers, with 5% beat on EBITDA; Pakistan issues continue NEUTRAL • BRD-GSG: weaker pre-provision profitability, but write-backs support bottom line • OMV: 1Q19 results, in line • OMV Petrom: 1Q19 results, no surprises • MOL: 1Q19 results • Myti...

Research Team

Focus: Turkey macro - borrowing cost update; Kruk’s solid 1Q19 delivery; Hellenic Bank’s full-year results post Coop acquisition and capital issue; Novatek’s 1Q19 results - earnings better, although FCF not as strong as expected

HEADLINES: • Turkey macro: borrowing cost update • Kruk: solid 1Q19 delivery POSITIVE • Hellenic Bank: full-year results post Coop acquisition and capital issue • Novatek: 1Q19 results - earnings better, although FCF not as strong as expected NEUTRAL • Lenta: 1Q19 revenues up 6% on 5% lfl growth NEUTRAL • X5: 1Q19 results above expectations POSITIVE • NIS: 1Q19 results review - weak, as expected NEUTRAL • Bank Pekao: reaches agreement with the trade unions on the group layoffs announced previously NEUTRAL • Erste Bank: supervisory board approves new management board members NEUTRAL • Moscow ...

Research Team

Focus: Turkish Banks - putting CBT swaps into context for the banks; Banca Transilvania – first read on the 1Q19 parent results - strong beat due to provision reversals; PKP Cargo’s CEO does not exclude raising EBITDA forecasts for 2019E

HEADLINES: • Turkish Banks: Putting CBT swaps into context for the banks • Banca Transilvania: first read on the 1Q19 parent results - strong beat due to provision reversals • Kety: 1Q19 results - better than the preliminary figures, broadly in line with our forecasts POSITIVE • PKP Cargo: CEO does not exclude raising the EBITDA forecasts for 2019 following 1H19E POSITIVE • Benefit Systems: incentive programme for foreign companies' managements NEUTRAL • Tofas: to adjust production into two shifts, CEO comments on the domestic market NEUTRAL • MTS: plans to invest in drones, according to Ko...

Research Team

WOOD Morning (30 January)

HEADLINES: • Romanian banks: it happened one night (Banca Transilvania and BRD downgraded to HOLD) • Romania politics: parliamentary structure and ALDE comments • Santander Bank Polska: posts neutral set of underlying results for 4Q18 • Bucharest Stock Exchange: shareholders approve creation of central counterparty • AmRest: 4Q18 preliminary sales up 23% yoy NEUTRAL • O2 Czech Republic: takeaways from 4Q18 conference call NEUTRAL • KGHM: tremor at Rudna mine NEGATIVE • Raiffeisen Int.: 4Q18E results preview (preliminary data due on 6 February) • Erste Bank: 4Q18E results preview (due on 2...

Research Team

WOOD Morning (28 January)

HEADLINES: • Sberbank: lifting of Rusal sanctions positive news POSITIVE • Erste Bank: issues profit expectations for 2018E, proposes 2018E DPS of EUR 1.4 NEUTRAL • MMK: 4Q18 trading update - in line with expectations • PGNiG: 4Q18 operating results • OMV: to acquire 15% of ADNOC refining for USD 2.5bn • PGE: DGP speculates on Ostroleka and market consolidation • MONETA Money Bank: 4Q18E preview (due on 6 February) • Short News (BFT, PKP)

With a more favourable environment, ERSTE GROUP BANK AG improves to Slightly Positive

ERSTE GROUP BANK AG (AT), a company active in the Money Center Banks industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date February 15, 2019, the closing price was EUR 32.00 and its potential was estimated at EUR 35.44.

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...

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