Transformation in Česká spořitelna

Transcription

1 Transformation in Česká spořitelna Blending American style with Austrian concepts and Czech culture Dr. Heinz Knotzer Member of the Board and Deputy CEO Prague, May 16, 2006

2 Erste Bank Group - March 2006 ERSTE BANK in Central and Eastern Europe 2

3 Erste Bank Group Financial Ratios 3

4 Erste Bank Group Group Income Statement (IFRS) 4

5 Erste Bank Group Group Balance Sheet (IFRS) 5

6 Erste Bank Group Group Balance Sheet (IFRS) 6

7 Erste Bank Current shareholder structure Total numbers of shares: 308,032,560* By Investor Type By Region Austria Verein 5.0% Continental Europe 6.4% Others 0.9% 30.5% UK & Ireland 17.2% Employees 1.5% Institutional investors 48.6% Free float 64.5% Private investors 7.2% Savings banks 7.2% 7 North America 17.6% Austria 57.9% * As at February 2006

8 Česká spořitelna Financial Group 8

9 Česká spořitelna Group Profit & Loss Statement IFRS, Consolidated, CZK m original restated* Net interest income 17,126 17,236 18, Provisions on losses on loans and advances Net fee and commission income 8,580 8,394 8, Net profit/(loss) on financial operations 1,309 1,309 1, General administrative expenses -15,824-15,890-16, Income from insurance business Other operating income/(expenses) 2,827 2, Profit/(loss) before taxes 13,781 13,173 12, Income tax expense -4,046-3,950-3, Profit/(loss) after taxes 9,735 9,223 9, Minority interests -1,086-1, Net profit/(loss) for the year 8,649 8,137 9, Operating income 27,207 28, Operating expenses -15,890-16, Operating result 11,317 12, Cost / Income Ratio (%) 58.4% 56.9% ROE (%) 21.8% 22.3% % change 9

10 Česká spořitelna Financials (IFRS) IFRS, Consolidated, CZK m original restated* Net interest income 17,126 17,236 18, Provisions on losses on loans and advances Net fee and commission income 8,580 8,394 8, Net profit/(loss) on financial operations 1,309 1,309 1, General administrative expenses -15,824-15,890-16, Income from insurance business Other operating income/(expenses) 2,827 2, Profit/(loss) before taxes 13,781 13,173 12, Income tax expense -4,046-3,950-3, Profit/(loss) after taxes 9,735 9,223 9, Minority interests -1,086-1, Net profit/(loss) for the year 8,649 8,137 9, Operating income 27,207 28, Operating expenses -15,890-16, Operating result 11,317 12, Cost / Income Ratio (%) 58.4% 56.9% ROE (%) 21.8% 22.3% % change * Restated to reflect changes in accounting methodology related to IFRS 39 and other structural changes 10

11 Česká spořitelna Board Members + SMT 11

12 Transformation Jan 8 the failure of cash dispensers in full-area ČS cancels job positions OUT OF ORDER Ombudsman office starts its activities Start-up of Special Programmes (TOP Podnik, TOP Bydlení, TOP Kapitál, TOP Partner) Mortgage interest rate drops to 6.1% ČS devotes CZK 50 mio for floods damages recoverage ČS shortens the opening hours ČS offers Servis 24 Internetbanking Start-up of Client Call Centre in Prostějov 12 ČS becomes Bank of the Year 2002

13 Transformation H 2005 ČS succeeds to finish the legally enforced conversion of anonymous deposits books ČS establishes EU Office ČS becomes Bank of the Year 2003 ČS establishes Expat Centre ČS offers to companies the EU Programme to increase the competitiveness within EU ČS re-numbers 5 millions accounts due to EU entry ČS implements the possibility to pay by card in public authorities offices All cash dispensers work also for the settling payment orders ČS successfully introduces ORCO shares in Prague Stock Exchange ČS announces the action Let's pay by card, you help ČS sends from each transaction CZK 0,50 for a charity project ČS introduces 270 children corners in branches 13 Ministry of Finance attacks to ČS because of fees

14 Transformation 2 2H ČS introduces Codex of Clients Rights Gartner IT Consulting chooses ČS 2nd best in CRM among European banks ČS announces the project LEAP Dislocation of employees from H.Q. to outside Prague ČS announces the construction of Technical Centre. CZK 1.5 mio investment ČS establishes Business 24 - internet banking for companies 14

15 Transformation 1 - Project portfolio Local projects Group projects Enterprice Enterprice information information progr. progr. Credit Cards Credit Cards Chip Card Chip Card Payment Payment System System Development Development AML AML Core SAP Core SAP MSF MSF WebDON WebDON CIC III I R2 CIC III R2 Technical Technical center center LEAP LEAP Consumer Consumer Finance Finance FM Products FM Products Processing Processing SAP Bank SAP Bank Analyser Analyser DMS WfM II DMS WfM II Efficiency Efficiency Programme Programme (Hulk) (Hulk) Legacy Legacy Enhancement Enhancement Symbols CT Symbols CT WAN III WAN III Process Process Management Management in CS in CS EWCM EWCM Mortgage Mortgage Factory Factory Stabilization Stabilization releases releases Retail 2008 Retail 2008 Business Business Intelligence Intelligence Decentralised Decentralised Computing Computing (dis) (dis) Card Strategy Card Strategy GITO GITO EPM Tool EPM Tool Phase 2 Phase 2 Group Group Payment Payment System System Software Software Develop.. (NDU Develop. (NDU sit) sit) Large Large Corporates Corporates Cash Pooling Cash Pooling 15

16 New Group Architecture (NGA) Development of common approaches across the group with the aim to share benefits and ripe synergies Installation of a New Governing Body Group Steering Committee 16

17 New Group Architecture (NGA) Retail 2008 Harmonization of products & processes Widening of range of Investment Products Sales Management Techniques Consumer Finance Cards Group-wide Card Unit Revolving Credit Cards Group Large Corporates Group wide common approach to Large Corporates t/o > EUR 175 mio. Group Procurement Ripe synergies form combining procurement Information Technology Implementation of Group IT entities servicing the whole group Group Performance Model Harmonized controlling and reporting tools 17

18 Transformation 2 VISION, MISSION, VALUES & STRATEGIES

19 Transformation 2 Support Development of Market place Employee Code of Ethics CS Corporate Social Responsibility New Branding 19

20 Support Development of Market Place Corporate Governance Codex of Clients Rights for Private Clients Teach clients about products and service standards Develop better know-how on knowledge on customer side Specify not only rights but also what a customer can expect 20

21 Employee Code of Ethics Up date Basic version in use since 2001 Up-dated based on new core values for our stake holders, i.e. Clients Share holders Company Community 21

22 Corporate Social Responsibility Conducting Business Responsibly Sustaining Communities Being Responsive to our Communities and our Customers Environmental Responsibility Creating a Great Work Environment 22

23 FORMING A NEW BRAND

24 Vision & Mission Vision: CS is the First Choice Bank for all client groups. Through excellent performance of our employees, we provide superb advice, help and services to our clients. Through superb advice, help and service to our clients, we provide extraordinary returns to our shareholders. Through extraordinary returns to our shareholders, we provide a challenging and rewarding environment to our employees. Through extraordinary returns to our shareholders, we help in the development of the communities where we do business. Mission: We are a financial services provider enabling all our clients to achieve their specific wishes and needs. 24

25 Forming a new brand ČS as a company ČS in the market, as perceived by clients Vision Mission brand image in line withw brand essence Core values - ČS company s religion: pillars of executing and living its vision; deeply rooted in the brand essence; enable to fulfill the mission and to deliver in line with brand promise. Attentive & responsive Reliable Open & easy 25

26 New Brand Essence We always listen to our client needs and have an unquestioning commitment to fulfilling them. We make banking easy and worry-free so that our clients can achieve their own priorities both in managing their finances and in life as a whole. 26

27 Implementation of the New Brand SUBSIDIARIES COMMUNICATION APPROVAL PROCESSES Attentive & responsive Open &easy IN BRANCH NAVIGATION DISTRIBUTION CHANNELS STATEMENTS ČS Brand OMBUDSMAN SPONSORING PARTNERSHIPS Reliable 27 Etc PERSONNEL BEHAVIOR

28 Blending American style with Austrian concepts and Czech culture Fully dedicated to deliver outstanding financial results Vision to build the leading central European retail banking group Extreme high dedication and motivation Wish to take the leading position amongst the subsidiaries in EBG 28

29 Blending American style with Austrian concepts and Czech culture High committment to customer service and quality Establishing of group-wide valid principles and standards Very hard working Gradual integration and alignment of products and services Central support of IT development 29

30 Blending American style with Austrian concepts and Czech culture Benefit and profit driven customer care concepts Excellent technical skills Group wide harmonized marketing Prepared and ready to master the future 30

31 THANK YOU FOR YOUR ATTENTION