OTCPK:EBKD.Y

Stock Analysis Report

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Executive Summary

Erste Group Bank AG provides a range of banking and other financial services to retail, corporate, real estate, and public sector customers in Austria, Central and Eastern Europe, and internationally. More Details


Snowflake Analysis

Good value 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: EBKD.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

EBKD.Y

0.3%

US Banks

-1.4%

US Market


1 Year Return

-42.6%

EBKD.Y

-28.7%

US Banks

17.8%

US Market

Return vs Industry: EBKD.Y underperformed the US Banks industry which returned -28.5% over the past year.

Return vs Market: EBKD.Y underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

EBKD.YIndustryMarket
7 Day2.8%0.3%-1.4%
30 Day-5.6%5.8%4.7%
90 Day-16.5%-0.5%8.2%
1 Year-42.6%-42.6%-26.1%-28.7%20.5%17.8%
3 Year-50.5%-53.9%-19.3%-26.0%42.2%32.7%
5 Year-20.0%-29.1%14.8%0.6%83.4%62.7%

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

No news available

Valuation

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

8.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EBKD.Y ($10.38) is trading above our estimate of fair value ($9.42)

Significantly Below Fair Value: EBKD.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EBKD.Y is good value based on its PE Ratio (8.2x) compared to the US Banks industry average (10x).

PE vs Market: EBKD.Y is good value based on its PE Ratio (8.2x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: EBKD.Y is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: EBKD.Y is good value based on its PB Ratio (0.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Erste Group Bank forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBKD.Y's forecast earnings growth (18.5% per year) is above the savings rate (2.2%).

Earnings vs Market: EBKD.Y's earnings (18.5% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: EBKD.Y's revenue (3.8% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: EBKD.Y's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EBKD.Y's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

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

12.3%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: EBKD.Y's current net profit margins (14.5%) are lower than last year (23.4%).


Past Earnings Growth Analysis

Earnings Trend: EBKD.Y has become profitable over the past 5 years, growing earnings by 12.3% per year.

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

Earnings vs Industry: EBKD.Y had negative earnings growth (-44.6%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: EBKD.Y's Return on Equity (6.3%) 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: EBKD.Y's Assets to Equity ratio (12.5x) is moderate.

Allowance for Bad Loans: EBKD.Y has a low allowance for bad loans (89%).

Low Risk Liabilities: 82% of EBKD.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: EBKD.Y has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: EBKD.Y's Loans to Deposits ratio (95%) is appropriate.

Level of Bad Loans: EBKD.Y has a high level of bad loans (2.1%).


Next Steps

Dividend

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

5.32%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EBKD.Y's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EBKD.Y's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EBKD.Y's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EBKD.Y's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EBKD.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EBKD.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Bernd Spalt (52 yo)

0.75

Tenure

€765,100

Compensation

Mr. Bernd Spalt has been Chairman of Management Board and Chief Executive Officer at Erste Group Bank AG since January 1, 2020. Mr. Spalt is a Member of Supervisory Board at Banca Comerciala Româna SA sinc ...


CEO Compensation Analysis

Compensation vs Market: Bernd's total compensation ($USD908.02K) is below average for companies of similar size in the US market ($USD7.32M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bernd Spalt
Chairman of the Management Board & CEO0.75yr€765.10k0.0012%
€ 105.1k
Stefan Dörfler
CFO & Member of Management Board1.25yrs€765.10k0.00020%
€ 17.2k
Peter Bosek
Chief Retail Officer & Member of the Management Board5.75yrs€1.13m0.00037%
€ 31.9k
Alexandra Habeler-Drabek
Chief Risk Officer & Member of Management Board1.25yrs€764.90k0.000020%
€ 1.7k
Ingo Bleier
Chief Corporates & Capital Markets Officer and Member of Management Board1.25yrs€764.40k0.00076%
€ 65.5k
Gernot Mittendorfer
Consultant1.25yrs€1.08mno data
Jozef Síkela
Consultant1.25yrs€1.05mno data
David O'Mahony
COO & Member of Management Board0.75yrno datano data
Thomas Schaufler
Member of Management Boardno datano datano data
Maurizio Poletto
Member of Management Boardno datano datano data
Johannes Leobacher
Head of Corporate and Investment Banking Division11.5yrs€654.50kno data
Thomas Sommerauer
Head of Group Investor Relations9.75yrsno datano data

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: EBKD.Y's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wilhelm Rasinger
Independent Member of the Supervisory Board15.42yrs€85.00k0.0060%
€ 512.5k
John Stack
Independent Member of the Supervisory Board13.42yrs€70.00k0.0080%
€ 691.7k
Maximilian Hardegg
Independent Second Vice Chairman of Supervisory Board3.42yrs€123.00k0.000060%
€ 5.2k
Friedrich Rödler
Chairman of the Supervisory Board8.42yrs€207.00k0.00054%
€ 46.5k
Jan Homan
1st Vice Chairman of the Supervisory Board6.75yrs€129.00k0.0011%
€ 93.0k
Gunter Griss
Independent Member of the Supervisory Board6.42yrs€70.00kno data
Karin Zeisel
Employee Representative of the Supervisory Board12.17yrsno data0.000010%
€ 861.4
Andreas Lachs
Employee Representative of the Supervisory Board12.17yrsno datano data
Markus Haag
Employee Representative Member of the Supervisory Board8.92yrsno data0.000040%
€ 3.4k
Elisabeth Senger-Weiss
Independent Member of the Supervisory Board6.42yrs€83.00kno data
Barbara Pichler
Employee Representative of the Supervisory Board12.17yrsno data0.000080%
€ 6.9k
Regina Haberhauer
Employee Representative of the Supervisory Board5.42yrsno data0.000050%
€ 4.3k

8.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: EBKD.Y's board of directors are considered experienced (8.7 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: EBKD.Y
  • Exchange: OTCPK
  • Founded: 1819
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €7.258b
  • Listing Market Cap: €8.614b
  • Shares outstanding: 408.23m
  • 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
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 retail, corporate, real estate, and public sector customers in Austria, Central and Eastern Europe, and internationally. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:36
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.