OTCPK:EBKD.Y

Stock Analysis Report

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

-2.3%

OTCPK:EBKD.Y

-1.8%

US Banks

-1.6%

US Market


1 Year Return

-18.4%

OTCPK:EBKD.Y

-16.1%

US Banks

-3.0%

US Market

EBKD.Y underperformed the Banks industry which returned -16.1% over the past year.

EBKD.Y underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

EBKD.YIndustryMarket
7 Day-2.3%-1.8%-1.6%
30 Day-14.1%-10.1%-5.7%
90 Day-10.2%-5.0%0.2%
1 Year-15.0%-18.4%-13.7%-16.1%-0.8%-3.0%
3 Year28.8%16.4%37.9%28.5%38.1%29.1%
5 Year44.8%28.2%49.3%33.2%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

12%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Erste Group Bank's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Erste Group Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Erste Group Bank is good value based on earnings compared to the US Banks industry average.

Erste Group Bank is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Erste Group Bank is poor value based on expected growth next year.


Price Based on Value of Assets

Erste Group Bank is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Erste Group Bank expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Erste Group Bank's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Erste Group Bank's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

Erste Group Bank's revenue growth is positive but not above the United States of America market average.

Erste Group Bank's earnings growth is positive but not above the United States of America market average.

Erste Group Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Erste Group Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Erste Group Bank has delivered over 20% year on year earnings growth in the past 5 years.

Erste Group Bank's 1-year earnings growth is less than its 5-year average (20.5% vs 48.1%)

Erste Group Bank's earnings growth has not exceeded the US Banks industry average in the past year (20.5% vs 33.1%).


Return on Equity

Erste Group Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Erste Group Bank used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Erste Group Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Erste Group Bank has an acceptable proportion of non-loan assets held.

Erste Group Bank has a low allowance for bad loans.

Erste Group Bank's liabilities are made up of primarily low risk sources of funding.

Erste Group Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Erste Group Bank are broadly funded by customer deposits.

Erste Group Bank has a high level of bad loans (greater than 2%).


Next Steps

Dividend

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

5.50%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Erste Group Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Erste Group Bank's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


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?

0.08yrs

Average management tenure


CEO

Andreas Treichl (67yo)

22.1yrs

Tenure

€2,713,100

Compensation

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


CEO Compensation Analysis

Andreas's remuneration is lower than average for companies of similar size in United States of America.

Andreas's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.08yrs

Average Tenure

52yo

Average Age

The average tenure for the Erste Group Bank management team is less than 2 years, this suggests a new team.


Board Age and Tenure

9.4yrs

Average Tenure

67.5yo

Average Age

The tenure for the Erste Group Bank board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Andreas Treichl (67yo)

    Chairman of the Management Board & CEO

    • Tenure: 22.1yrs
    • Compensation: €2.71m
  • Gernot Mittendorfer (55yo)

    Consultant

    • Tenure: 0.1yrs
    • Compensation: €1.11m
  • Willi Cernko (63yo)

    Member of the Management Board

    • Tenure: 2.6yrs
    • Compensation: €993.60k
  • Peter Bosek (51yo)

    Chief Retail Officer & Member of the Management Board

    • Tenure: 4.6yrs
    • Compensation: €1.05m
  • Bernhard Spalt (51yo)

    Deputy CEO & Member of Management Board

    • Tenure: 0.1yrs
    • Compensation: €202.40k
  • Jozef Síkela (52yo)

    Consultant

    • Tenure: 0.1yrs
    • Compensation: €1.06m
  • Petr Brávek (58yo)

    COO & Member of the Management Board

    • Tenure: 4.3yrs
    • Compensation: €1.08m
  • Alexandra Habeler-Drabek (49yo)

    Chief Risk Officer & Member of Management Board

    • Tenure: 0.1yrs
  • Stefan Dörfler (48yo)

    Chief Financial Officer & Member of Management Board

    • Tenure: 0.1yrs
  • Ingo Bleier

    Chief Corporates & Capital Markets Officer

    • Tenure: 0.1yrs

Board Members

  • Wilhelm Rasinger (71yo)

    Member of the Supervisory Board

    • Tenure: 14.3yrs
    • Compensation: €90.00k
  • Jack Stack (73yo)

    Member of the Supervisory Board

    • Tenure: 12.3yrs
    • Compensation: €66.00k
  • Maximilian Hardegg (53yo)

    Second Vice Chairman of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €111.70k
  • Brian O’Neill (66yo)

    Member of the Supervisory Board

    • Tenure: 12.3yrs
    • Compensation: €69.00k
  • Friedrich Rödler (69yo)

    Chairman of the Supervisory Board

    • Tenure: 7.3yrs
    • Compensation: €210.00k
  • Jan Homan (72yo)

    1st Vice Chairman of the Supervisory Board

    • Tenure: 5.6yrs
    • Compensation: €133.00k
  • Gunter Griss (74yo)

    Member of the Supervisory Board

    • Tenure: 5.3yrs
    • Compensation: €69.00k
  • Karin Zeisel (58yo)

    Employee Representative of the Supervisory Board

    • Tenure: 11.0yrs
  • Andreas Lachs (55yo)

    Employee Representative of the Supervisory Board

    • Tenure: 11.0yrs
  • Markus Haag (39yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 7.8yrs

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: €12.227b
  • Listing Market Cap: €13.620b
  • 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 Analysis2019/08/24 23:52
End of Day Share Price2019/08/23 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.