Funding Strategy

Erste Bank´s prime liquidity source is the large surplus of customer deposits the bank has due to its strong market position in Austria and the CEE countries where it is active.

in EUR million 31.12.2019 31.12.2018 31.12.2017 31.12.2016 31.12.2015
Financial liabilities - held for trading 2,421 2,508 3,423 4,762 5,867
Deposits from banks 13,141 17,658 16,349 14,631 14,212
Deposits from customers 173,846 162,638 150,969 138,013 127,946
Debt securities issued 30,371 29,738 25,095 27,192 29,654
Miscellaneous liabilities 5,437 5,381 6,535 7,027 7,257
Total equity 20,477 18,869 18,288 16,602 14,807
Total 245,693 236,792 220,659 208,227 199,743

Debt Structure as of 31.12.2019

The growing international activity of Erste Bank led it to develop alternative sources to the classic primary funding through customer deposits. The bank employs a wide range of funding sources and programmes to meet the funding requirements of the Group, its subsidiaries and the Austrian savings banks. The bank is active in Austria and internationally as a private placement issuer as well as making public issues in varying currencies, maturities and structures. The largest portion within securitised debt is made up of mortgage covered bonds which represent ca. one third, followed by senior and tier 2 notes. The mentioned seniorities constitute approximately 90% of outstanding bonds.

Slight yoy increase primarily related to start of NPS issuance in preparation for MREL implementation.

Maturity Profile as of 31.12.2019

Erste Group started the year with  EUR 750m covered bond issuance in January 2020; pricing at MS+3pbs Furthermore a EUR 500m perpNC7.2 AT1 was issued with a 3.375% annual coupon in the second half of January representing the second lowest coupon for a EUR AT1 ever printed Funding needs in 2020 out of holding amount to approx. EUR 4bn in various seniorities