Financial Analysis of Erste Group Savings Bank and its influence and standing on the Central and East European market

Ledion Mihilli

Bachelor's thesis

Abstract:

Abstract:Erste Group is one of the largest financial services providers in Central and East Europe. The main objective of the study was to evaluate the position of the banking group and its stance on the CEE market. The analysis was structured on two divisions; the strategic analysis which was evaluated through internal and external analysis and financial analysis which was done by using indicators as performance on the market, profitability and growth outlook. The collected secondary data of time period 2005 to 2015 was analyzed and used to examine Return on Assets (ROA), Return on Equity (ROE), Return on Capital (ROC) on the long term perspective. The Group s Geographical segmentation was examined to gain proper results on its influence on the CEE markets. The results of the analysis revealed that Erste Bank has maintained a constant positive presence on the finance sector with positive parameters and has been able to earn premium on capital costs that is sustainable over the long term. The sustainable growth and its capability to extend the capital under its management reinforce that Erste Group has strong premises for a further positive outlook and enlargement and extending its branches in other developing countries.

Keywords

Central Europe, banking, deposits, consumer behavior, Erste group

Language used: English

Date on which the thesis was submitted / produced: 3. 3. 2016

Thesis defence

• Supervisor: Ing. Petr Procházka, MSc Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme / field:
Economics and Management / Economics and Management