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

Debt Structure as of 31.03.2019

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 Q1 19. After a period of issuing wholesale covered bonds and capital (AT1), the bank again started to issue wholesale senior unsecured; benchmark issue in April 19 to be seen in Q2 19 results.

Maturity Profile as of 31.03.2019

Erste Group aspires to keep a constant redemption profile  to prevent above-average refinancing peaks in certain years.

Funding needs in 2019 amount to approx. EUR 3.8bn in various seniorities.
Erste Group capitalised on favourable market conditions beginning of March 2019 by issuing a third tranche of AT1 (EUR 500m, perpNC6.6, coupon 5.125%) and targets to fill 1.5%-AT1 bucket by year-end 2020.
Erste Group placed EUR 500m senior preferred at MS+45bps in April and attracted 240 investors with an orderbook above EUR 3.9bn after the last senior benchmark has been printed in 2013.