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 Analysis

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

Stable Share Price: EBS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.0%

EBS

7.7%

AT Banks

8.8%

AT Market


1 Year Return

-47.9%

EBS

-36.9%

AT Banks

-26.7%

AT Market

Return vs Industry: EBS underperformed the Austrian Banks industry which returned -39.7% over the past year.

Return vs Market: EBS underperformed the Austrian Market which returned -28.8% over the past year.


Shareholder returns

EBSIndustryMarket
7 Day12.0%7.7%8.8%
30 Day-27.2%-20.3%-10.8%
90 Day-48.0%-37.5%-27.6%
1 Year-45.7%-47.9%-34.4%-36.9%-24.2%-26.7%
3 Year-34.4%-40.9%-23.3%-29.3%-10.2%-18.2%
5 Year-16.9%-26.8%-0.4%-9.8%5.7%-9.0%

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?

34.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBS (€17.8) is trading below our estimate of fair value (€26.95)

Significantly Below Fair Value: EBS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EBS is poor value based on its PE Ratio (5.5x) compared to the Banks industry average (5.1x).

PE vs Market: EBS is good value based on its PE Ratio (5.5x) compared to the Austrian market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: EBS is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: EBS is overvalued based on its PB Ratio (0.5x) compared to the AT Banks industry average (0.4x).


Next Steps

Future Growth

How is Erste Group Bank forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBS's forecast earnings growth (1.6% per year) is above the savings rate (-0.1%).

Earnings vs Market: EBS's earnings (1.6% per year) are forecast to grow slower than the Austrian market (11.3% per year).

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

Revenue vs Market: EBS's revenue (2.1% per year) is forecast to grow faster than the Austrian market (2% per year).

High Growth Revenue: EBS's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EBS's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

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

33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBS has a high level of non-cash earnings.

Growing Profit Margin: EBS's current net profit margins (19.1%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: EBS has become profitable over the past 5 years, growing earnings by 33.7% per year.

Accelerating Growth: EBS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EBS had negative earnings growth (-19.7%) over the past year, making it difficult to compare to the Banks industry average (-4%).


Return on Equity

High ROE: EBS's Return on Equity (9.3%) is considered low.


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


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 (2.24%)


Next Steps

Dividend

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

8.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EBS's dividend (8.43%) is higher than the bottom 25% of dividend payers in the Austrian market (1.88%).

High Dividend: EBS's dividend (8.43%) is in the top 25% of dividend payers in the Austrian market (5.97%)


Stability and Growth of Payments

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 (46.4%), 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 covered by earnings (50.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Bernhard Spalt (51yo)

0.25

Tenure

€765,100

Compensation

Mr. Bernhard Spalt has been Chairman of Management Board and Chief Executive Officer at Erste Group Bank AG since January 1, 2020. Mr. Spalt serves as Chairman of Management Board at ERSTE Foundation. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Bernhard's total compensation ($USD833.26K) is below average for companies of similar size in the Austrian market ($USD2.62M).

Compensation vs Earnings: Insufficient data to compare Bernhard's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Bernhard Spalt
Chairman of the Management Board & CEO0.25yr€765.10kno data
Stefan Dörfler
Chief Financial Officer & Member of Management Board0.75yr€765.10kno data
Peter Bosek
Chief Retail Officer & Member of the Management Board5.25yrs€1.13m0.00024% 17.5k
Alexandra Habeler-Drabek
Chief Risk Officer & Member of Management Board0.75yr€764.90kno data
Ingo Bleier
Chief Corporates & Capital Markets Officer and Member of Management Board0.75yr€764.40kno data
Gernot Mittendorfer
Consultant0.75yr€1.08m0.0024% 178.2k
Jozef Síkela
Consultant0.75yr€1.05m0.0015% 112.0k
David O'Mahony
Chief Operating Officer & Member of Management Board0.25yrno datano data
Ara Abrahamyan
Chief Digital Transformation Officer & Member of Management Board0.25yrno datano data
Johannes Leobacher
Head of Corporate and Investment Banking Division11yrs€654.50kno data

0.8yrs

Average Tenure

51yo

Average Age

Experienced Management: EBS's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wilhelm Rasinger
Member of the Supervisory Board14.92yrs€85.00k0.0055% 397.1k
John Stack
Member of the Supervisory Board12.92yrs€70.00k0.0080% 583.3k
Maximilian Hardegg
Second Vice Chairman of Supervisory Board2.92yrs€123.00k0.000060% 4.4k
Friedrich Rödler
Chairman of the Supervisory Board7.92yrs€207.00k0.00042% 30.5k
Jan Homan
1st Vice Chairman of the Supervisory Board6.25yrs€129.00k0.0011% 78.6k
Gunter Griss
Member of the Supervisory Board5.92yrs€70.00kno data
Karin Zeisel
Employee Representative of the Supervisory Board11.67yrsno data0.000010% 727.3
Andreas Lachs
Employee Representative of the Supervisory Board11.67yrsno datano data
Markus Haag
Employee Representative Member of the Supervisory Board8.42yrsno data0.000040% 2.9k
Elisabeth Senger-Weiss
Member of the Supervisory Board5.92yrs€83.00kno data

8.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: EBS's board of directors are considered experienced (8.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €7.273b
  • Shares outstanding: 408.62m
  • Website: https://www.erstegroup.com

Number of Employees


Location

  • Erste Group Bank AG
  • Erste Campus
  • 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
EBO NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1997
EBOETLX (Eurotlx)YesCommon StockITEURSep 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 Retail, Corporates, Group Markets, Asset/Liability Management and Local Corporate Center, Savings Banks, and Group Corporate Center segments. The company provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. It also offers banking solutions for small and medium-sized enterprises, and local large corporate and group large corporate customers, as well as commercial real estate and public sector business, such as account management, payments, digital-banking, and cash logistics services; working capital finance, accounts receivable purchasing, factoring, and structured trade finance; letters of credit, documentary collections, guarantees, equity interests and investments, revolving export credits lines, customer financing, and export guarantee; investment, acquisition and leveraged, project, and commercial real estate finance; and corporate finance advisory and research services. In addition, the company offers trading and markets services; trade execution, market making, and short-term liquidity management services; custody, depository, cash management, and trade and export finance services; and asset/liability management services. Further, the company provides discretionary portfolio management services and investment funds. It operates approximately 2,507 branches. Erste Group Bank AG was founded in 1819 and is headquartered in Vienna, Austria. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 00:33
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.