WBAG:EBS

Stock Analysis Report

Erste Group Bank

Executive Summary

Erste Group Bank AG provides a range of banking and other financial services to the retail and corporate customers in Austria, Central and Eastern Europe, and internationally.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Erste Group Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

EBS

5.6%

AT Banks

3.0%

AT Market


1 Year Return

-18.1%

EBS

-12.0%

AT Banks

-4.9%

AT Market

Return vs Industry: EBS underperformed the Austrian Banks industry which returned -12% over the past year.

Return vs Market: EBS underperformed the Austrian Market which returned -4.9% over the past year.


Shareholder returns

EBSIndustryMarket
7 Day4.0%5.6%3.0%
30 Day-3.0%-2.4%-1.0%
90 Day-9.1%-4.4%1.9%
1 Year-14.6%-18.1%-8.4%-12.0%-1.4%-4.9%
3 Year16.7%5.1%35.8%24.8%43.7%30.7%
5 Year85.8%63.7%67.8%52.6%68.1%43.9%

Price Volatility Vs. Market

How volatile is Erste Group Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Erste Group Bank undervalued compared to its fair value and its price relative to the market?

29.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: EBS (€30.03) is trading below our estimate of fair value (€42.31)

Significantly Undervalued: EBS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EBS is good value based on its PE Ratio (7.7x) compared to the Banks industry average (7.9x).

PE vs Market: EBS is good value based on its PE Ratio (7.7x) compared to the Austrian market (14.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: EBS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: EBS is overvalued based on its PB Ratio (0.8x) compared to the AT Banks industry average (0.6x).


Next Steps

Future Growth

How is Erste Group Bank forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBS's forecast earnings growth (3.9% per year) is above the savings rate (0.5%).

Earnings vs Market: EBS's earnings (3.9% per year) are forecast to grow slower than the Austrian market (8.5% per year).

High Growth Earnings: EBS's earnings are forecast to grow, but not significantly.

Revenue vs Market: EBS's revenue (4% per year) is forecast to grow faster than the Austrian market (3% per year).

High Growth Revenue: EBS's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EBS's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Erste Group Bank performed over the past 5 years?

48.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EBS has become profitable over the past 5 years, growing earnings by 48.1% per year.

Accelerating Growth: EBS's earnings growth over the past year (20.5%) is below its 5-year average (48.1% per year).

Earnings vs Industry: EBS earnings growth over the past year (20.5%) exceeded the Banks industry 2.6%.


Return on Equity

High ROE: EBS's Return on Equity (11%) is considered low.


Return on Assets

ROA vs Industry: EBS's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate EBS's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Erste Group Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: EBS has a low level of unsold assets or inventory.

Debt Coverage by Assets: EBS's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: EBS's level of assets compared to its equity is moderate.

Allowance for Bad Loans: EBS has a low allowance for bad loans.

Low Risk Liabilities: EBS's liabilities are made up of primarily low risk sources of funding.

Loan Level: EBS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EBS's loans are broadly funded by customer deposits.

Level of Bad Loans: EBS has a high level of bad loans (2.49%)


Next Steps

Dividend

What is Erste Group Bank's current dividend yield, its reliability and sustainability?

4.66%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.6%markettop25%4.5%industryaverage4.1%forecastin3Years5.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EBS's dividend (4.66%) is higher than the bottom 25% of dividend payers in the Austrian market (1.57%).

High Dividend: EBS's dividend (4.66%) is in the top 25% of dividend payers in the Austrian market (4.49%)

Stable Dividend: EBS's dividend payments have been volatile in the past 10 years.

Growing Dividend: EBS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.7%), EBS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EBS's dividends in 3 years are forecast to be well covered by earnings (45.5% payout ratio).


Next Steps

Management

What is the CEO of Erste Group Bank's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Andreas Treichl (67yo)

22.3yrs

Tenure

€2,713,100

Compensation

Magistrate Andreas Treichl, MP, serves as the Chief Executive Officer and Member of Management Board at Erste Securities Istanbul Menkul Degerler A.S. He has been the Chief Executive Officer of Erste Group ...


CEO Compensation Analysis

Compensation vs. Market: Andreas's total compensation ($USD3.02M) is about average for companies of similar size in the Austrian market ($USD3.57M).

Compensation vs Earnings: Andreas's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.3yrs

Average Tenure

52yo

Average Age

Experienced Management: EBS's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

9.5yrs

Average Tenure

67.5yo

Average Age

Experienced Board: EBS's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Andreas Treichl (67yo)

    Chairman of the Management Board & CEO

    • Tenure: 22.3yrs
    • Compensation: €2.71m
  • Gernot Mittendorfer (55yo)

    Consultant

    • Tenure: 0.3yrs
    • Compensation: €1.11m
  • Willi Cernko (63yo)

    Member of the Management Board

    • Tenure: 2.8yrs
    • Compensation: €993.60k
  • Peter Bosek (51yo)

    Chief Retail Officer & Member of the Management Board

    • Tenure: 4.8yrs
    • Compensation: €1.05m
  • Bernhard Spalt (51yo)

    Deputy CEO & Member of Management Board

    • Tenure: 0.3yrs
    • Compensation: €202.40k
  • Jozef Síkela (52yo)

    Consultant

    • Tenure: 0.3yrs
    • Compensation: €1.06m
  • Petr Brávek (58yo)

    COO & Member of the Management Board

    • Tenure: 4.5yrs
    • Compensation: €1.08m
  • Alexandra Habeler-Drabek (49yo)

    Chief Risk Officer & Member of Management Board

    • Tenure: 0.3yrs
  • Stefan Dörfler (48yo)

    Chief Financial Officer & Member of Management Board

    • Tenure: 0.3yrs
  • Ingo Bleier

    Chief Corporates & Capital Markets Officer

    • Tenure: 0.3yrs

Board Members

  • Wilhelm Rasinger (71yo)

    Member of the Supervisory Board

    • Tenure: 14.4yrs
    • Compensation: €90.00k
  • Jack Stack (73yo)

    Member of the Supervisory Board

    • Tenure: 12.4yrs
    • Compensation: €66.00k
  • Maximilian Hardegg (53yo)

    Second Vice Chairman of Supervisory Board

    • Tenure: 2.4yrs
    • Compensation: €111.70k
  • Brian O’Neill (66yo)

    Member of the Supervisory Board

    • Tenure: 12.4yrs
    • Compensation: €69.00k
  • Friedrich Rödler (69yo)

    Chairman of the Supervisory Board

    • Tenure: 7.4yrs
    • Compensation: €210.00k
  • Jan Homan (72yo)

    1st Vice Chairman of the Supervisory Board

    • Tenure: 5.8yrs
    • Compensation: €133.00k
  • Gunter Griss (74yo)

    Member of the Supervisory Board

    • Tenure: 5.4yrs
    • Compensation: €69.00k
  • Karin Zeisel (58yo)

    Employee Representative of the Supervisory Board

    • Tenure: 11.2yrs
  • Andreas Lachs (55yo)

    Employee Representative of the Supervisory Board

    • Tenure: 11.2yrs
  • Markus Haag (39yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 7.9yrs

Company Information

Erste Group Bank AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Erste Group Bank AG
  • Ticker: EBS
  • Exchange: WBAG
  • Founded: 1819
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €12.259b
  • Shares outstanding: 408.23m
  • Website: https://www.erstegroup.com

Number of Employees


Location

  • Erste Group Bank AG
  • Am Belvedere 1
  • Vienna
  • Vienna
  • 1100
  • Austria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EBKO.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 1997
EBODB (Deutsche Boerse AG)YesCommon StockDEEURSep 1997
EBSWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1997
ERBAGSEP (The Stock Exchange Prague Co. Ltd.)YesCommon StockCZCZKSep 1997
0MJKLSE (London Stock Exchange)YesCommon StockGBEURSep 1997
EBSBVB (Bucharest Stock Exchange)YesCommon StockRORONSep 1997
EBOXTRA (XETRA Trading Platform)YesCommon StockDEEURSep 1997
EBSVBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURSep 1997
EBSSWX (SIX Swiss Exchange)YesCommon StockCHCHFSep 1997
EBKD.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 2003

Biography

Erste Group Bank AG provides a range of banking and other financial services to the retail and corporate customers in Austria, Central and Eastern Europe, and internationally. The company operates through  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:38
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.