History of Česká spořitelna
After February 1948 small savings banks were nationalized
In 1967 one State Savings Bank was created and in 1969 it was split into Czech State Savings Bank and Slovak State Savings Bank as a result of Czechoslovak Federation Law
1948 - 1990
Spořitelna česká was established
12th February 1825
Česká spořitelnabecame a joint stock company
30th December 1991
Erste Bank paid first half or EUR 531 m price and became 52% shareholder of ČS
3rd August 2000
Ambitious 18 month transformation programme was completed
December 2001
Erste Bank through its major shareholder announced its intention to buy out minority shares of Česká spořitelna
Erste became 98% owner of Česká spořitelna in the course of time
March 2002
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Česká spořitelna offers a complete range of
financial products and related services to
Private individuals
Small and medium
sized businesses
Municipalities
Large corporates
Česká spořitelna Today
Market leader in many business activities:
Consumer lending
Payment cards
business
ATM network
Volume of provided
mortgage loans
Managing customer
funds
Today Česká spořitelna is client oriented, modern
and competitive bank of European quality
The largest bank in the Czech Republic
as measured by number of clients
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ČS Strategic Goals
Česká spořitelna tends to become a bank which
helps its clients to improve their financial health
by providing financial and nonfinancial services
(e.g. utilities), and therefore fulfil its long-term goal
of bringing prosperity to its clients
The bank focuses on key segments in retail,
corporate and public segment and through these
segments wants to help local regions and
communities become more prosperous. Target
region is central and eastern Europe
accompanied by inspiration from Europe
and global competition
In order to achieve these goals,
Česká spořitelna intensively
pursues:
Client’s need fulfilment
Customer Obsession
Financial guidance
Availability
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Three Faces of ČS Retail Division
Pro všechny;
For whom
What
Values
Family financial
advisory with focus
on simplicity
Friendliness
Easiness
Trust
30,000+ CZK net
monthly income
or wealth of
0.5+ mil. CZK
Convenient financial
solutions for financially
capable clients
Professionalism
Accountability
Partnership
70,000+ CZK net
monthly income
or wealth of 4+ mil.
Exclusive services
for clients who want
to increase the value
of their property
Uniqueness
Exclusivity
Prestige
Small businesses and
entrepreneurs with a
turnover to 60 mil.
Financial services
using deep
knowledge of the
client´s business
Intelligibility
Consultant´s report
Proactivity
For everyone
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PropositionMy Healthy Finances Premium banking
(Erste Premier a EPB)
Retail proposition for
MSE
Česká spořitelna at Glance
10,135 employees 4.7 m clients
510 branches 1,698 ATMs & POS
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ČS ratings (as of 10 May 2018)
Consolidated IFRS
(in CZK m)
1-3 17 2017 1-3 18Y/Y
Change
Balance Sheet
Total assets 1,310,841 1,329,223 1,303,274 -0.6%
Customer loans 590,288 638,694 668,953 13.3%
Customer deposits 826,175 883,237 909,409 10.1%
Profit & Loss Statement
Operating result 4,718 18,987 4,836 2.5%
Net profit 3,528 14,610 4,070 15.4%
Financial Ratios
Return on Equity - ROE 11.5% 12.1% 13.3%
Net Interest Margin 2.7% 2.6% 2.3%
Cost/Income Ratio 49.4% 49.0% 48.9%
EGB AG98.97%
Municipalities0.59%
Other0.44%
Shareholder structure
as of 31 March 2018
Fitch A- F1 stable
Moody's A2 Prime -1 positive
Standard & Poor's A A-1 positive
Rating agency Long-term Short-term Outlook
Česká spořitelna Financial Group
ČS subsidiaries offer customers wide range of
supplementary financial products in area of:
Building savings and building loans
Leasing
Pension supplementary insurance
Factoring
Net profit of selected subsidiaries
Selected subsidiaries included
in consolidation
100 %100 %
100 %100 % 100 %
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* Only the result of Pension Society of ČS is captured, funds not included
IFRS, CZK m 1-3 17 1-3 18 % Change
Stavební spořitelna ČS 175 182 4.0%
sAutoleasing 28 26 -7.1%
Erste leasing 17 16 -5.9%
ČS Penzijní společnost* 65 49 -24.6%
Factoring ČS 16 17 6.3% Leasing ServicesFactoring and
Forfaiting ServicesPension Company
Building Society
Leasing Services
ČS Market Shares
Market leadership maintained (March 2018)
Market leadership in:
Number of customers (4.7 m)
Total mortgages (market share of 27%)
Consumer loans incl. credit cards (market share of 28%)
Total loans (market share of 21%)
Total deposits (market share of 21%)
25% in retail deposits, 13% in corporate deposits
Mutual funds with market share of 26%
No. 2 positions in:
Private mortgages (market share 25%)
Total assets (market share of 19%)
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19%19% 19% 20%
19%
23% 23% 23% 23% 23%
20% 20% 20% 21% 21%
Mar 17 Jun 17 Sep 17 Dec 17 Mar 18
Total assets Retail loans Corporate loans
25% 25% 25% 25% 25%
12% 12%13% 12% 13%
Mar 17 Jun 17 Sep 17 Dec 17 Mar 18
Retail deposits Corporate deposits
ČS Digital
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BUSINESS 24 Mobile bankMakes the management of company finances easy even during traveling
Friends 24New way of making small payments without knowing the account number
Investment centreEasy way to monitor stock-exchange, market analyses, exchange rates and commodity prices
Česká spořitelna is a traditional bank
with almost 200 years of history.
At the same time it is modern
institution, which introduces unique
digital and mobile products and
services on the banking market.
Here are some of them:
My statusApplication for clients who do not need to make payments, but want to continually monitor their finances
GeorgeAllows clients to transfer money, make QR code payments, manage payment cards wherever they are, full-text search or upload receipt.Soon ready for NFC payments and integration of My Healthy Finances service. Will replace SERVIS 24 Mobile bank
Actual Awards from Prestigious Institution
Česká spořitelna won the third place in the main category of research Nejlepší banka 2017 by the newspaper
Hospodářské noviny. ČS‘s product “Půjčka bez papírů” (Paperless loan) was ranked as the second best
in the Banking Innovator category
The Erste Private Banking service was rated the best private banking in the Czech Republic by the prestigious
World Finance magazine. In addition, Private Banking of the Erste Group was awarded as the best in the CEE
region by The Banker magazine
Product “Půjčka bez papírů” (Paperless loan) received the first place in Cena pokroku, awarded by the financial
portal Chytrý Honza
TV spot of Česká spořitelna “Professor Vojta’s Story" won a bronze medal at one of the most prestigious
international creativity festivals, Clio Awards, in the royal film’s category, where it proved its quality among several
thousand works
Česká spořitelna succeeded in the Zlatá koruna competition. ČS received the first place in the Mortgage category,
also, for the third time in a row, in the Corporate Social Responsibility category. Stavební spořitelna ČS won gold
and bronze medals for its products, Penzijní společnost ČS won bronze medal as well
In July 2017, Česká spořitelna again received the prestigious Euromoney Awards for Excellence as the Best Bank
in the Czech Republic. The prize is awarded each year by the Euromoney, international magazine specializing in
banking and capital markets
In March 2017, Česká spořitelna won the title as the Best Bank of the Year 2017 given by Global Finance
Magazine. The magazine’s editorial staff decided on the prize after consultations with financial experts and analysts
across the continents
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Introduction to Erste Group
1997 2000 2001 2003 2004 2005 2006 2007 2008
New holding structure improving
Group governance
Austria’s first savings bank: Founded in 1819
Erste Group went public in 1997 with a strategy to expand its retail business model into CEE
Acquisition of more than 10 banks between 1997 and 2008
Erste core activities – besides the traditional strength in serving private individuals and SMEs – include advisory services and support for corporate clients (incl. access to international capital markets)
Erste Group’s customer base grew from 600,000 in 1997 to 16.5 m in March 2018Sale in 2012
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Erste Group – Leading retail bank in the eastern part of the EU
Leading retail and corporate bank
in 7 geographically connected countries
Favourable mix of mature & emerging
markets with low penetration rates
Potential for cross selling and
organic growth in CEE Clients: 0.9m
Retail loans: 12.0%
Retail dep.: 9.0%
Branches: 115
Clients: 3.4m
Retail loans: 16.2%
Retail dep.: 15.8%
Branches: 508
Clients: 4.7m
Retail loans: 23.2%
Retail dep.: 25.4%
Branches: 510
Czech Republic
Clients: 2.2m
Retail loans: 27.3%
Retail dep.: 27.8%
Branches: 270
Slovakia
Clients: 1.2m
Retail loans: 13.6%*
Retail dep.: 13.8%*
Branches: 153
Clients: 3.7m
Retail loans: 20.2%*
Retail dep.: 19.5%*
Branches: 905
Austria
Clients: 0.4m
Retail loans: 5.6%
Retail dep.: 3.8%
Branches: 85
Absolut data reported as of March 31st 2018; AT and HR market shares for March 31st 2018 not available yet
* Data as of December 31st 2017
Direct presence
Indirect presence
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Croatia Serbia
Hungary
Romania
Strategy
Focus on local currency
mortgage and consumer loans
funded by local
deposits
FX loans only in EUR for
clients with EUR income
(or equivalent) and where
funded by local FX deposits
(HR & RS)
Savings products, asset
management and pension
products
Expansion of digital banking
offering
Retail banking
Large, local corporate and
SME banking
Advisory services, with
focus on providing access
to capital markets and
corporate finance
Real estate business that
goes beyond financing
Corporate Banking
Focus on customer business,
incl. customer-based trading
activities
In addition to core markets,
presences in Poland,
Germany and London with
institutional client focus and
selected product mix
Building debt and equity
capital markets in CEE
Capital markets
Financing sovereigns and
municipalities with focus on
infrastructure development in
core markets
Any sovereign holdings are
only held for market-making,
liquidity or balance sheet
management reasons
Public sector
Focus on banks that operate
in the core markets
Any bank exposure is only
held for liquidity or balance
sheet management reasons
or to support client business
Interbank business
Eastern part of Europe Focus on CEE, limited exposure to other Europe
Real customer needs are the reason for our business
Strategic Objectives
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Erste Group Highlights
45,048 employees
16.5 m clients
2,546 branches
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EB ratings (as of 10 May 2018)
Consolidated IFRS
(in EUR m)Q1 2017 2017 Q1 2018
Y/Y
Change
Balance Sheet
Total assets 222,798 220,659 230,018 3.2%
Customer loans 132,992 139,532 142,100 6.8%
Customer deposits 144,707 150,970 155,306 7.3%
Profit & Loss Statement
Net profit 262 1,316 333 26.8%
Financial Ratios (quarterly)
Return on Equity - ROE 8.7% 10.1% 10.4%
Net Interest Margin 2.3% 2.4% 2.3%
Cost/Income Ratio 63.0% 66.1% 64.5%
Fitch A- F1 stable
Moody's A2 Prime-1 positive
Standard & Poor's A A-1 positive
Long-term Short-termRating agency Outlook
By regionBy investor
Shareholders structure Erste Group bank
Total number of shares: 429,800,000
1 Economic interest Erste Foundation2 Economic interest Savings Banks3 Other parties to the shareholder agreement of Erste Foundation, Savings banks and CaixaBank
* Unidentified institutional and retail investors
** Including Market Makers, Prime Brokerage, Proprietary Trading, Collateral and Stock Lending positions which are visible through custodian banklists
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Austria
27.5%
North America
16.3%
UK & Ireland
15.0%
Continental
Europe
25.7%
Rest of world
3.0%
Identified Trading **
3.2% Unidentified *
9.3%
Erste Foundation 1
11.2% Savings Banks 2
5.5%
Other Syndicated 3
3.1%
Caixa
9.9%
Employees
0.7%Retail
5.0%Institutional
47.2%
BlackRock Inc
4.9%
Identified Trading **
3.2%
Unidentified *
9.3%
ČS Group Product Offerings
Retail Customers
Corporate Customers
Financial Market Products
EU Programmes of ČS
My Healthy Finances
My Healthy Finances principles:
Helping clients better manage their
family budget
We are looking for savings in regular
monthly expenses, and advise how to
use them
We teach clients to use self-service
machines (simple operations can do
clients on their own; time spent with the
advisor = real advisory service)
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George
Banking of the future that will make clients‘ life easier
• Online advisor 24/7
George helps with money management and answers every question at any time
• George in mobile
George pays, changes the limit and blocks the card no matter where client currently is
• Smart search
Client enters the word or number related to the payment and George will find it within
a second
• Automated payment sorting
George carefully sorts out the client‘s expenditures, thus client exactly knows, how
much and for what he pays
• Higher security level and more comfortable login
Client sets his own login and adjusts the layout according to his ideas. He can log in
quickly and easily and confirm the payments with the application George Key
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Product Offering for Retail Customers
Accounts & Cards
My Healthy Finances with Personal Account (incl.
products for pupils, students and absolvents)
Entrepreneur current accounts
Service 24 (mobile & internet banking), application My
Balance, Melinda etc.
Debit and Credit cards
Lending products
Consumer loans (incl. loans consolidation)
Money on click – revolving loan
Operating, investment, mortgage, revolving, non-
purpose loans for MSE
Mortgages (incl. American mortgages)
Building Society Loans
Lombard loans
Overdrafts
Savings and Investment Products
ČS Saving account with envelopes for separate goals
Mutual funds
Building savings
Retirement benefit schemes
Life/non-life insurance
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Product Offering for Corporate Customers
Payment Services
Current accounts and business debit and credit cards
Business 24 Internet banking, Business 24 Mobile bank,
MultiCash
e-Invoicing (@FAKTURA 24, e-Faktura)
Cross-Border Services
Card acquiring
Hedging
FX risks, Commodities & Interest rate risks hedging
Lending Products
Working capital & investment financing
Real estate & project financing
Syndicated, club & acquisition finance
Debt capital markets
Trade & Export Finance
Documentary business & bank guarantees
Export finance
Issuers Services
Custody services, depositary, cash payouts, squeeze-
outs
Advisory services
Financial & strategic advisory
Debt & Rating advisory
M&A advisory
Grant advisory
Companies valuation
Equity capital markets
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Financial Market Products
Treasury
Investment products
Products for foreign currency risk management
Products for interest rate risk management
Money market products
Commodity derivatives, physical gold and electric energy
sales
Investment banking
Bonds & Equities trading and brokerage
Primary issues (domestic bonds, eurobonds, commercial
papers)
Corporate finance advisory
Private Equity, Venture Capital, Acquisition Finance
Asset management
Investment advisory for institutional and private clients
Individual portfolio management
Research / Consultancy
Custodian and securities/artworks depository services
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Special Programmes for ČS Customers
TOP INNOVATION program
Being the first bank in the Czech Republic, Česká
spořitelna offers special programme to its corporate
clients, that is designed for investments into further
development through innovation of existing products,
services, processes or technologies
ČS is building a network of cooperating partners –
including advisors, venture funds, professional
associations etc.
TOP INNOVATION programme includes:
Complete product range of bank financing
Benefits in the form of interest benefit from EIB
resources
ČMZRB subsidized loan
Hedging of energy and commodity prices
Advisory & education programmes focused
on innovation management
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Special Programmes for ČS Customers
InnovFin Programme (guarantees) of EIF
After successful implementation of the RSI guarantee of
the EIF in 2012, the second guarantee line InnovFin was
signed in 2015
The guarantee further develops programme TOP
Innovation and makes it more attractive to ČS customers
Key parameters of the guarantee:
Focus on innovation projects
Guaranteed exposure 50%, total limit available
EUR 100 m
SME businesses – up to 250 employees, EUR 50 m
turnover or EUR 43 m assets; Mid-caps up to 500
employees
Eligible also for start ups – max. 3 years from
registration, max. 10% from total guaranteed limit
Loan amount – from EUR 25 thousand up to
EUR 7 m
Loan maturity – up to 10 years
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Special Programmes for ČS Customers
InnovFin Programme (guarantees) of EIB
The new guarantee of EIB now also provides
guarantees for midsize companies up to 3,000
employees
Follows up on the EIF guarantee, which covers
companies up to 500 employees
Key parameters of the guarantee:
Focus on innovation projects
Guaranteed exposure 50%, total limit available
EUR 100 m
Midsize companies – up to 3,000 employees
without any limit on turnover or assets
Loan amount – up to EUR 40 m
Loan maturity – up to 5 years
Another guarantee programme is EaSI*
The guarantee is focused on financing of small start ups up to CZK 600 thousand. Together with InnovFin credit lines, ČS
covers the whole spectrum of loans (from start ups up to midsize companies) by guarantees of EU financial institutions.
In this area ČS is the market leader
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*Programme for Employment and Social Innovation
Special Programmes for ČS Customers
Global Loan EIB
Global Loan is intended to support the projects realized
by municipalities, SMEs and midsize companies up to
3,000 employees, in the form of advantageous interest
rate
Definition of SME:
1. Annual turnover up to
EUR 50 m
2. Up to 250 employees
3. Independence
Midsize companies – up to 3,000 employees without
the turnover or assets limit
ČS has signed contracts with the EIB in the total
volume of EUR 1,400 m and has supported more
than 1,000 projects
Up to 100% of eligible project costs can be financed
from Global Loan
Global Loan can be connected with support
programmes of European Commission: guarantee
programmes of EIF and EIB
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Making Good Things Happen
▸ Applications
For tw o and a quarter years, w e piloted a simple and modern
w ay to help people in need. Through Melinda, our mobile donor
application, our clients have donated over CZK 1 million for sixty
projects operated by various NGOs.
Now they can use Darujme.cz, a unique fundraising portal of
Nadace VIA, for w hich w e provide a payment gatew ay.
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▸ CultureWe support a w ide range of cultural events to make them as
accessible as possible and keep them for future generations. We
opened 2018 w ith the New Year's concert of the Czech
Philharmonic, w hose main partner w e have been since 2015.
Other events of this year include the festivals of Smetanova
Litomyšl, Metronome, Colours of Ostrava and Kefír.
Our Erste Premier partnered w ith the Czech Grand Design
Awards this year.
▸ SportsAs the partner of the Czech Olympic Committee, w e were
represented at the w inter games in Pyeongchang. In cooperation
w ith the YouTuber Karel Kovář know n as KOVY, w e prepared a
special program for sports fans on our social netw orks. More
than 877 thousand unique users saw our contributions and gave
us around 8,500 likes.
In the w inter season, w e supported the traditional Ski for Life
competition.
▸ Česká spořitelna FoundationČeská spořitelna Foundation is the largest banking foundation
in the Czech Republic. It pursues systemic change in education
and social enterprise. Every year, it invests roughly
CZK 60 million into the development of our civil society.
In January 2018, tw o spin-off foundations w ere created: Učitel
naživo, z. ú. and Elixír do škol, z. ú. In January 2018, the
Foundation also announced the w inners of the 4th anniversary of
the Floccus Award.
▸ Students University of Economics in Prague w as our f irst partner in the
academic w orld, and this year w e signed the 16th cooperation
agreement in the role of its chief partner. Later w e added further
higher teaching institutions, and now w e cooperate w ith
7 colleges and 2 faculties all over the country. We also support
TEDx events, a number of incubators, accelerators and youth
competitions . We communicate w ith students on the Facebook
page Pomáháme dobrým myšlenkám and elsew here.
▸ Financial literacyThe Abeceda peněz (Money Basics) project introduces the w orld
of business and finance to primary school pupils. The activities of
pupils accompanied by our employees culminate in sales fairs in
our branches. In March 2018 alone, 30 such events w ere held.
Roughly 10,000 people visited the DEPO2015 centre to see the
interactive exhibition called Show Me the Money that targets
pupils too.
.
Contact
Česká spořitelna, a. s.
Olbrachtova 1929/62
140 00 Praha 4
Czech Republic
Tel: +420 956 711 111
Fax: +420 224 641 511
Green line: 800 207 207
E-mail: [email protected]
Internet: www.csas.cz
SWIFT: GIBA CZ PX
Reuters: SPOPsp.PR