Erste CEO on Cost Cuts, Negative Rates, Capital Ratio

The transcript covers various aspects of European banking, including net interest income challenges, cost management, and investment strategies. It highlights the digital platform George's role in client growth and market share. The economic outlook in the CEE region is discussed, noting its resilience compared to other areas. The conversation also touches on CET1 ratio targets and capital return strategies. Finally, expectations from the ECB and the need for stable regulatory policies are addressed.

What is the main challenge for European banks in growing net interest income?

• Strict lending regulations

• Negative interest rates

• High inflation rates

• Increased competition

What is the suggested approach to managing costs in the banking sector?

• Invest in technology and skilled personnel

• Announce cost-cutting plans publicly

• Focus on short-term gains

• Reduce customer service quality

What is the main benefit of the digital platform 'George' for the bank?

• Increased loan approvals

• Reduced operational costs

• Higher interest rates

• Growing client base

What is the expected GDP growth rate in Central and Eastern Europe?

• 1%

• 4%

• 3%

• 2%

Under what condition will higher dividends or share buybacks be considered?

• If CET1 exceeds 14%

• If GDP growth is above 4%

• If inflation is below 2%

• If interest rates rise

What is a key expectation from Christine Lagarde's leadership at the ECB?

• Expansion of the Eurozone

• Stability in regulatory environment

• Reduction in banking regulations

• Increase in interest rates

What is the potential risk of excessive regulation in the European financial system?

• Reduced innovation

• Increased competition

• Higher interest rates

• Market instability