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 30.09.2019 31.12.2018 31.12.2017 31.12.2016 31.12.2015
Financial liabilities - held for trading 2,751 2,508 3,423 4,762 5,867
Deposits from banks 19,936 17,658 16,349 14,631 14,212
Deposits from customers 172,511 162,638 150,969 138,013 127,946
Debt securities issued 30,103 29,738 25,095 27,192 29,654
Miscellaneous liabilities 6,670 5,381 6,535 7,027 7,257
Total equity 20,130 18,869 18,288 16,602 14,807
Total 252,101 236,792 220,659 208,227 199,743

Debt Structure as of 30.09.2019

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 respresent ca. one third, followed by senior and tier 2 notes. The mentioned seniorities constitute approximately 90% of outstanding bonds.

Amount of debt stable in Q3 19. 

Maturity Profile as of 30.09.2019

In 2019, Erste Group has placed a total volume of EUR 2.5 billion in five benchmark-size issuances at all levels of seniority except tier 2. The most recent issue was a 10-year mortgage covered bond priced at MS + 6bp in September, which resulted in a negative yield of -0.16%. This transaction was the longest Euro denominated bond with a negative yield at this seniority level.