Ladies and gentlemen, dear shareholders, I'd like to welcome you very quarterly. My name is Friedrich Rutler. I'm the Chairman of the Supervisory Board of F2 AG. And pursuant to Section 100 and sixteen-one of the Austrian Stock Corporation Act, I take the chair and open today's twenty eighth Annual General Meeting AGM of Shareholders of Ethel Gogue Bank Now for the protection of shareholders and other participants, the management board has decided to make use of the existing legal provision to hold a virtual AGM. Today's Annual General Meeting will be held as a virtual Annual General Meeting in accordance with the COVID-nineteen Act and the COVID-nineteen ordinance, taking into account the interests of both the company and the participants and will be broadcast in its entirety on the Internet.
The holding of the Annual General Meeting as a virtual AGM in accordance with the COVID-nineteen Ordinance on Corporate Law leads to certain changes and modifications in the course of the AGM as well as in the exercise of the rights held by shareholders. All this was presented in the convening notice and participation information made available on the company's website and which Mr. Brickyard Republic will discuss in detail below. He will first be presented with the reports, in particular the management board presentation and proposed resolutions on all agenda items in one go. Following this, the special proxies, proxy holders will take the floor to read out any proposed resolutions.
This will be followed by the general debate, I. E, the reading out and answering of questions put by members of the Management Board. At this point, I would like to inform you, dear shareholders, that you can already submit your questions to the Management Board by using the following e mail address: kragen. Fiesttauppersammer. At.
Around one p. M, I will interrupt the Annual General Meeting for an approximately twenty five minute break. May I ask you to submit your questions by the end of this break? After the questions on all agenda items have been answered, the respective motions will be voted on in the order of the agenda. I note the following: The convening of today's AGM was published in due time in compliance with the provisions of Section 106 Stock Corporation Act in the Vienna Zeitung of 04/20/2021 and also that furthermore pursuant to Section 107 Paragraph three of the SAW Corporate Act, it was electronically distributed on European level by press release on 04/20/2021 as well.
On 04/20/2021, also in accordance with the new provisions of the Stock Exchange Law, the transmission of the convening notice to the shareholders was arranged via the so called chain of intermediaries pursuant to Section 182 of the Stock Exchange Act of 2018. I note that no motions or additions to the agenda and no other proposed resolutions were received from shareholders and therefore were not required to be published on the company's Web site. Therefore, at today's AGM, only the agenda items announced in the notice of the AGM on 04/20/2021, can be dealt with and only the candidate for election to the Supervisory Board, Agenda Item six, that was announced on the company's website on 04/20/2021 can be voted on. The documents to be disclosed pursuant to Section 108, Paragraph three and four of the Sovereign Corporation Act were made available on the company website on 04/20/2021. In particular, information on the organizational and technical requirements for participation pursuant to Section three paragraph three in conjunction with Section two paragraph four of the company's act as well as the COVID-nineteen ordinance, then a questionnaire and a power of attorney and instruction form for special proxies pursuant to with Section 120 of the Stock Corporation Act.
I may now ask the noted public Mr. Briggs to explain the modalities for exercising shareholders' rights at today's virtual shareholders' meeting and the course of the shareholders' meeting, which have been made available on the company website. Mr. Bensie, you have the floor. Thank you very much, Mr.
Chairperson, dear shareholders. In the notice convening the AGM on 04/20/2021, it was announced that today the AGM would be held as a virtual AGM without the physical presence of shareholders. In addition, on 04/20/2021, information was published on the company website regarding the organizational and technical requirements for participation in the AGM pursuant to Section three paragraph three in conjunction with Section two paragraph four of the corporate COVID-nineteen ordinance. Today's Annual General Meeting will be held in the presence of the Chairman of the Supervisory Board, Friedrich Feudler the First Deputy Chairman of the Supervisory Board, Johan Rumann the Chairman of the Management Board, Bernhard Schweig the members of the Management Board, Ingo Pleijer, Stefan Doerfleur, Alexander Havelen Trapek, David O. Mahoney, Mauricio Polekto and Thomas Chauffler.
The four special proxy holders:
Nicolas
Arrensammen, Attorney Law Michael Knab Christoph Nauer, Attorney Law and Robert Obamen, Attorney Law Richard Wolff, Attorney Law as Legal Advisor and myself as a Certifying of Republic. As representative of the auditors, Sparkasen Buchenstoban, Gerhard Maagetich is available to us by telephone and e mail for any questions. He is following the AGM via the live stream. As representative of the auditors PwC, Witcherst Bruffung, G. B.
H. Dorothea Reitmann can be reached via telephone and e mail to answer any questions. She is also following the AGM via the live stream. As representatives of the FMA, the state commissioners received an invitation to today's AGM and have the opportunity to follow it via the live stream. The local state commissioners can communicate with us during the AGM and, if need be, contact the management board or the chairman of the AGM.
How are shareholder rights exercised and enforced today? The exercise of voting rights, the right to propose resolutions and the right to object, while all of this is effective exclusively by granting power of attorney and issuing instructions to one of the special processes appointed by the company. The right to information can be exercised in today's virtual AGM by the stockholders themselves or by their authorized representatives via electronic communication. And now to the broadcasting and the way this AGM will be conducted pursuant to Section three, paragraph four of the COVID-nineteen Coordinates in Internet transmission with picture and fan in German language. Please select one on the F.
Gulpbach AG website, video webcast, Kopfasamen twenty twenty one or alternative stream video webcast annual general one is German, other one is in the annual general meeting. If you exercise any trouble during the transmission, please switch to the other access mode. Today's AGM will be conducted in German. The entire AGM will be interpreted from German into English. The live stream for this can be accessed on the English language website.
In addition, the German stream will also be available in sign language for the duration of the entire AGM. By broadcasting the AGM on the Internet, all shareholders who so wish will have the opportunity to follow the proceeding of the AGM in real time through this acoustic and visual link and to follow the presentations made by the management board and the answers to shareholders' questions and the voting procedure in real time. Please note that the live transmission of the virtual AGM does not enable remote participation Section 102 paragraph three of the Stock Corporation Act and remote voting Section 123 of the Stock Corporation Act and in Section 126 of the Stock Corporation Act and that the transmission on the Internet is not a two way connection. The individual shareholder can therefore only follow proceedings proceedings of the Annual General Meeting. Now, how is the right for information exercised, specifically shareholders and their proxies authorized to exercise the right confirmation and the right to speak also have the opportunity during the AGM to submit their questions in writing electronically to the management board within a certain time window after the opening of the AGM exclusively via the e mail address that is shown now: fraden.
Jftehauptforsanno. At. At today's AGM, these questions will be read out by the Chairman of the Supervisory Board and then answered by the management board. Please use a simple email to the email address at. Eftahalfsson.
At. For this purpose, you are requested to send this email from the email address provided in the process statement in order to establish a quick vetting of your identity. This e mail must state the shareholder's first and last name or company name, the shareholder's date of birth or company register number and the securities account number to enable the management board to determine the shareholder's identity and compliance with the securities account confirmation. Please enter your e mail with your name, so called replica of the named signature person to Section 13 paragraph two of the Stockholders' Act. Shareholders thus have the opportunity to react themselves to developments at today AGM, For example, by asking a question or a supplementary question, the Chairman will structure proceedings of the AGM in terms of time just like in a physical meeting and will interrupt the AGM at around one p.
M. For a break of around twenty five minutes. You are asked to submit your questions by the end of this break, as has been mentioned before. And now to the special proxies. Shareholders also have the opportunity to amend their instructions to special proxies in particular on submitting motions or resolutions, voting or amending their instructions regarding voting on one or more items of the agenda, but also in raising objections to one or more items of the agenda to the relevant special proxy even during the AGM up to a certain point.
To do this, please use a simple e mail to the e mail address of your Praxe Ole to whom you have also sent the power of attorney. These are shown and are thought: alzama. Efthauffsamen. At or knapp. Efthauffsamen.
At or naua. Efthauffsamen. At or bahama. Efthauffsamen. At.
In a simple e mail, the person of the shareholder, I. E. First name and last name or company name of the shareholder, date of birth or company register number of the shareholder must be stated. In order to enable the proxy holder to establish the identity and also compliance the proxy, please enter your e mail with your name, again, replica of the name signature person to Section 13 paragraph two of the Stockholders Act and also state your depository or securities account number as already mentioned. The e mail is to be sent from the e mail address indicated in the proxy.
Please note that during the AGM, communication with your proxy is only possible by e mail and in particular that it is not possible to reach your proxy by telephone. The time up to which instructions on submitting motions, voting and raising objections are possible will also be determined by the Chairman in the course of today's AGM. This time is expected to be close to the end of the general debate. It should be noted that it may be necessary to briefly interrupt the virtual AGM in order to deal with questions to the management board received during the AGM and instructions from the shareholders to the proxies. All right.
This is a summary of today's virtual Annual General Meeting, ladies and gentlemen, as published on the company's website, in particular in the document information on the organizational and technical requirements for participation pursuant to Section three paragraph three in connection with Section two, paragraph four of the corporate COVID-nineteen ordinance. Well, thank you very much, Notary Public, Mr. Blickes, for these statements. As Chairman, I order that today's Annual General Meeting be conducted in the manner announced in the notice of meeting and in the information made available online regarding organizational and technical requirements for participation pursuant to Section three paragraph three in conjunction with Section two paragraph four of the corporate COVID-nineteen ordinance and presented by the Novary public Mr. Briggs.
The list of participants will be completed before the first voting signed by myself, and the presence will then be announced to you. The list of participants will be made available electronically for inspection by the special proxies present in the room. And we now move on to the agenda. Item one of the agenda, presentation of the adopted annual financial statement, the management report, the consolidated corporate governance report and the management report, the consolidated non financial report, the proposal for the appropriation of profits and the report of the Supplies Report on the 2020 financial year and presentation of the consolidated financial statements and the Group Management Report on the 2020 financial year. Forementioned documents were made available on the company website in accordance with Section 108 Paragraph three and four of the Stock Operation Act.
The annual financial statements and management report prepared by the management board and the consolidated financial statements and group management report for the 2020 financial year were audited by Cebaca and Prufunk's Savings Bank's Auditing Association and statutory auditors and by PWC, which has an additional auditor and issued with an unqualified opinion. PWC, Wichestsburgfunk, GmbH, was also asked to perform a limited audit of the 2020 consolidated corporate governance report, namely to verify compliance with Rules one to 76 of the Austrian Corporate Governance Code. Deloitte audit of the GmbH was tasked with a limited audit of the 2020 consolidated non financial report. The audit did not lead to or result in any objections. The Supervisory Board examined the annual financial statements, the management report, the consolidated corporate governance report, the consolidated non financial report, the consolidated financial statements and the group management report and noted them with approval.
It has also approved the annual financial statements, which are thus deemed adopted. No further approval is therefore required at today's AGM. Furthermore, the Management Board and Supervisory Board have prepared a remuneration or compensation report for the first time for the 2020 financial year. Ladies and gentlemen, dear shareholders, I would now like to take a brief look back at the past financial year 2020 from the perspective of the Surprise report. Group's core markets in The EU or Central And Eastern Europe were severely affected by the COVID-nineteen pandemic.
But despite this exceptional and difficult environment, Ester Group was able to successfully hold its ground in the market in the financial year 2020, which is also a confirmation of the Ester Group's strategy from the Supervisory Board's perspective. Even in an environment characterized by economic slowdowns and downturns, LCBOB recorded growth in customer loans and deposits in all core markets. Based on our equipped with solid capital base, risk provisions were formed early on even though loan quality hardly deteriorated in the past financial year. Ethel Group and its subsidiary, Ben, have played and will continue to play an important role in managing economic consequences of the pandemic and in handling the conflicts and very diverse government aid programs and the moratoria in our core markets.
Now in
terms of an accompanying supervision, the Supervisory Board kept itself continuously and comprehensively informed about the measures taken by the Management Board in its context and this is a process that was and will be continued in 2021. It has always been a special concern of EST Group to always be there for its customers even in difficult situations and, if necessary, to look for an individual solution. The Supervisory Board was impressed by the professionalism, the speed and flexibility with which ETSIG Group's management board and employees responded and continue to respond to these challenges in 2020 and beyond. Accompanied by a great team of our health center and Doctor. Hertel, a working environment was created that allowed operations to continue in a difficult environment with only minor restrictions.
These developments naturally have had an impact on the management board's proposal for the appropriation of profits for 2019, which the Supervisory Board addressed in several meetings. The Supervisory Board took into account the ECB's recommendation of 03/27/2020, not to pay a dividend for 2019 initially until 10/01/2020. On 07/27/2020, this ECB recommendation was extended until January 2021. On 12/15/2020, the ECB issued a further recommendation asking to refrain from paying dividends until 09/30/2021 or to limit any dividends according to specified criteria. The payment of a dividend for the financial year 2019 and in February 2021 an amount approved by the AGM on 11/10/2020, would have been contrary to this new ECB recommendation at its meeting on 02/08/2021, the Executive Committee of the Supervisory Board, therefore, concurred with the management Board's determination or a statement that the condition for the payment of a dividend for the 2019 financial year is not met and therefore that the profits for the 2019 financial year will be carried forward in its entirety for a new accounting.
Let me now turn to HR changes occurring in past fiscal year. Now in 2020, were several changes in the management board. After more than twenty five years of service in our banking group, Peter Bostik resigned from the management board as of 12/31/2020, to take up a new challenge abroad. The Supervisory Board would like to express sincere thanks for his many years of successful service to Eltigo. To his development, he made a significant contribution as one of the fathers, so to speak, of our digital platform, George.
We wish him all the best and much success in his new position. As of 12/31/2020, Arahamian also stepped down from his mandate. And I would also like to express my sincere thanks to him for his work for Erste Group. On the 10/15/2020, the Supervisory Board extended Alexander Havel at Rabic's management board mandate to last until the 12/31/2023. Thomas Schalke and Maurizio Poleto were appointed by the Supervisory Board in October 2020 as additional members of the management board with effect from the 01/01/2021 until the 12/31/2023.
Now there were also changes to the Supervisory Board in the 2020 financial year. Here the mandates of Maxwell Enhardek, Kunta Kriess and William Rattingen expired at the end of the AGM on 11/10/2020. A mandate of Maxwell Enhardek was extended. Kunta Gris was no longer available for reelection due to the age limit for supervisory board members stipulated in the Articles of the Association. I would like to thank him very much for his many years of service on the supervisory board of Erste Group and AG.
Kounte Gris was not only a proven legal expert and recognized specialist in his field, but also a friend of the savings bank sector and closely tied to it for many years, we hope to be able to continue to count on the solidarity and commitment. William Krasningham passed away in December 2020 almost immediately after his mandate expired after his short and serious illness. He was a member of the Supervisory Board of Jastigroupe Bank AG for more than fifteen years. And we knew William Rasine as a person of courage and intellect on whose independent spirit we could always count. He always made important contributions to our discussions with his expertise, his vision and his compelling arguments.
And we were lucky to have him in our On the occasion of his departure from the supervisor board in November, I was also very pleased to receive his words of appreciation in the form of a letter, which I was allowed to read out at the left AGM at his personal request. We are pleased to welcome two new and very experienced personalities to our team, Friedrich Fante and Anders Seymourg, who were elected to the Supervisory Board at the AGM on 11/10/2020. Today's AGM marks the end of the mandate of John James Stack or Jack Stack as we know here, who is also no longer available for reelection due to the age limits set up in the articles of association. It's very difficult for me in the short time available here to adequately express the thanks we owe to Jack Stack for his contribution to and commitment and involvement with our banking group Jack Stack made a valuable and significant contribution to the development of our group and CEO, Francesca Skorgettema, later as its Chairman of the Supervisory Board and also as a member of the Supervisory Board of Delta Group and AG. His knowledge, his experience, his expertise, but also his affection and commitment to the people working in this banking group were unique.
I hope that we can continue to count on his support to Erste Group and that he will remain with us as a friend. Now, Mr. Schuster, we are proposing to add a new member of the Supervisory Board for this AGM. Well, with him, we would like to continue on our chosen path towards digitization and innovation and gain new knowledge and experience in these areas for the Supervisory Board. With regards to the composition and independence of the Supervisory Board as well as the focus of its activities, I refer to the consolidated corporate governance report prepared by the management report and audited by the Supervisory Board.
For the activities of the Audit Committee, I refer to its separate report. The Supervisory Board was kept informed promptly and comprehensively by the management board at a total of 43 supervisory boards and committee meetings. This enabled us to perform the duties incumbent upon us under the law, the Articles of Association, the Corporate Governance Code in full, and to ensure proper conduct of business. The annual financial statements consisting of the balance sheet, income statement notes and management report as well as the consolidated financial statement and group management report for 2020 were all audited by the Savings Bank Audit Association as a statutory auditor and the PWC Widgets Group from GNBH, the additional auditor appointed and were issued with an unqualified audit opinion. Representatives of the two auditors attended the meetings of the Audit Committee and the Supervisory Board at which annual financial statements were discussed and provided explanations of the or concerning the audits performed.
Following its own review, the Supervisory Board concurred with the results of these audits and agreed with the proposal for the appropriation of profits for the 2020 financial year. BWC Wigglesworth and GmbH was also tasked with the voluntary audit of the 2020 consolidated corporate governance report and the 2020 remuneration report. And as I've already mentioned, Deloitte audit, which is good from GmbH was tasked with an audit of the 2020 consolidated financial report.
Reasons and purposes were securities trading market making and authorized share buyback programs. The transactions took place on exchange and off exchange. For the purpose of securities trading and market making, 4,112,029 shares represented 0.96% of the capital stock were acquired in the aforementioned period, A total of 3,000,009 and 29,153 shares represented 0.91% of the share of the stock capital were sold. The total price purchase price amounted to 95,000,005 and €89,122.5 and the total selling price 87,000,001 and €34,999.5 The respective gain or loss was recognized in the net trading income. As of the 04/03/2021, ASTER Group Bank AG held a short position of 39,597 own shares, which was covered by borrowing transactions.
As part of authorized share buyback programs in the reporting period 2,707,499 shares representing 0.63% of the capital stock were acquired. A total of 2,363,535 shares representing 0.55 of the capital stock were sold. The total purchase price amounted to 57,000,007 and €23,747 and the total selling price €41,370,798 The respective gain or loss was recognized in the income statement. As of 04/30/2021, treasury shares amounted to 1,572,337 shares representing 0.37% of the share capital. I thank Mr.
Dafler for this presentation. Now we continue with the report of the Management Board and I would like to ask Mr. Spaitz to give us his presentation on the business year 2020. Thank you, Mr. Chairman, dear shareholders, dear shareholder representatives.
I would like to welcome you all to our second all digital Annual General Meeting from the Grand Hall at the Astecampus in Vienna. Thank you for tuning in. While last year it was quite strange for us to look into screens and cameras instead of faces, today we've already become somewhat accustomed to it. This pandemic is extraordinary for all of us. It teaches us digitization and puts a lot in our place.
It has brought some people as well as companies to the limit of their existence or even cost their lives. A bank is a mirror of the economy and so it comes as no surprise to anyone that our institution has also suffered from the consequences of the pandemic. Looking at the cultural sector, the tourism and transport industries, I'm well aware of the fact that of course the financial sector was not the main victim. On the contrary, unlike like during the financial crisis, banks have been an intrinsic part of crisis management this time. ST Group supported its customers in this crisis and has taken support measures with a total volume of €18,400,000,000 especially in the form of deferrals.
16,000,000 customers remained loyal to us. This is not self evident in a crisis unprecedented in this century in which consolidation is also taking place in the financial world. I understand this loyalty as a mandate. In line with our principle, which dates back more than two hundred years, we want to help secure and increase the prosperity of our customers and thus the prosperity of the society in which we live. We want to walk the path out of the crisis together with you, our shareholders together with our customers in order to benefit from the rebound we expect today, today one point five years after the outbreak of the pandemic.
Ladies and gentlemen, I believe now I'm convinced that the key competitive advantage of this banking group is our 46,000 employees. This is something that I as CEO and perhaps U. S. Customers and shareholders have been able to experience during this crisis. Wherever possible our branches remained opened and we were there for our customers without any restrictions.
And I think this is very important to understand. In this crisis, while we had lockdowns in order to, safeguard the health of the population, banks were part of the critical infrastructure that had to be open to provide infrastructure services. Proud is a big word, but I'm very proud of our team and I would like to thank our team. Since the beginning of this year, Mr. Rudel already mentioned that, the management team in our banking group has changed.
For Thomas Schauffler and Maurizio Polletto, it's not the first Annual General Meeting, but it's their first time on stage. I'm very pleased that they have been joining our team and welcome them most warmly. As you might know, we are currently working hard to prepare Erste Group for the challenges of the coming years. Topics such as further increasing efficiency, digital transformation and our growth strategy in the region in our core business are keeping us busy. And we are quite certain that we have chosen the right path.
And you might have read it in the media. Yes, apart from opportunities there will be consolidation processes. There will be opportunities to acquire banks and we have a lot of liquidity. We are strong in terms of capital and we are very profitable. And this is why we are strong enough to look at all the opportunities offered by the market.
At the same time, we are also looking more intensely at very specific issues for the future such as how to increase prosperity in a time of low and negative interest rates or how to deal with climate change. I'm well aware that it is a privilege to head a group of companies and a group of companies which wants to assume responsibility and can help shape the future. Dear shareholders, let me continue with the report on the financial year 2020 and the 2021. The corona crisis has had us firmly in its grip for over a year sending Europe's economy into recession. The measures imposed to contain the virus such as travel restrictions have brought international tourism to a standstill.
The manufacturing industry on the other hand came through the crisis quite well And what should not be forgotten is that the swiftly implemented government measures all over Europe be they guarantees or moratoria, short term working skills or allowances paid by the state made a significant contribution to ensuring that a wave of insolvencies did not set in during 2020 and hasn't set in yet. Understandably, domestic products in most countries declined significantly and unemployment rates and public debt have risen markedly. Against this background, our business performance in 2020, the business performance of Fiesta Group was very solid. Our net loans you can see them inserted here increased group wide by 3.6% to 166,100,000,000 Customer deposits increased, although there is no interest paid by an amazing 9.9% to €191,100,000,000 at year end. As pleasing as it is that we are seen as a trusted brand and a safe haven for the money of our customers, it is challenging to invest these funds profitably in times of extremely low interest rates.
If you look at the development of net fee and commission income in the current year, you will see that our advisers are really doing well. Resulting from the dynamic growth of our customer deposits, the loan to deposit ratio fell to 86.9% at the end of the year. That's a historic low, which was even lower in the 2021. This will change, but I'll come back to that later on. You can also see from the charts that deposits have increased in all countries and so have loans.
In Austria, the loan volume increased by over €3,000,000,000 which is positive. We financed revolving accounts and we also financed housing private housing. We are fulfilling our social function as a bank in this crisis and doing what the economy expects of us, granting loans. The credit type is open and not closed. If you now look with me at the development of our operating income, you see that despite of the circumstances I have just described, net interest income improved by 1.1% to €4,800,000,000 last year.
Net fee and commission income understandably suffered last year, but it was crisis of the century. But thanks to a very good performance in the fourth quarter only recorded a decline to 1,970,000,000 I think this is proof that the business model of Erste Group in all regions is robust, solid and also very future oriented. The trading and valuation results declined heavily in the past years. If you remember the 2020, there was a double shock. We had the lockdowns of the first wave of the pandemic.
And this at the same time, we had an oil price shock. And this resulted in unrest on the financial markets and this is why our net trading and fair value income suffered. In the following quarters, the situation eased and we recovered some of the declines. Operating expenses have fortunately declined over the past year, which is a strategic priority. Not only in the crisis, also in future, we wanted to make sure that we provide our services efficiently and that cost discipline is a major element in our business model.
Apart from structural changes, the improvement is of course also resulting from the fact that some expenses have declined as a result of the crisis for example elimination of business trips but also the reduction of marketing expenses. As a result of these measures, we were able to keep our operating profits relatively stable despite the deteriorating environment. The cost income ratio of our group remains at a satisfactory 59% and must improve however. On our Capital Markets Day twenty nineteen, we said before the pandemic that we want to have a cost income ratio of 55% by 2024. We didn't change this goal simply due to the pandemic.
We have to make sure that our cost income ratio is continuously improving. Once we realize the dimension and implications of the COVID crisis, we started proactive risk provisions. Last year, we didn't know what would happen if we have worldwide lockdowns. What happens if people can't pay back their loans? What effects this will have on the economy when state measures expire?
So we didn't postpone risk provisioning. In 2020, we started proactive booking of risk provisions in order not to shift this problem to the future. Whereas the risk costs for the full year 2019 were a mere €39,000,000 we booked €1,300,000,000 in 2020. This is 80 basis points in relation to the average credit volume. The proportion of our non performing loans if you look at the balance sheet increased only slightly from a very low 2.5% to 2.7% in 2020, 2.7% which is also very, very low.
The fact that this increase was relatively low is certainly also due to the large number of government support measures in our region. We are also well prepared for the period after the measures expire. This is evident among other things from our NPL coverage, which increased by more than 11 percentage point year on year to 88.6. In our CE markets in particular, our NPL coverage excluding collateral was very high. In The Czech Republic, Romania, Slovakia and Hungary, it was well above 100% and in Serbia it was even close to 170%.
We expect an economic rebound and we start this rebound from a very robust basis. The net result for 2020 reflects the internal influences following risk provisions. Resulting from the significant risk provisioning net profit fell to €783,000,000 I think this is a result when thinking about the development of our operating profit. It shows that our business model is the right one that the region we are doing business in is the right region and the strategy that we chose is the right strategy for our customers. We are deeply rooted in the real economy and a reliable partner for our customers be they private individuals, small and medium sized enterprises, large companies or the public sector.
Our capital development and I already mentioned that remained encouraging and we had a core Tier one ratio, the so called common equity Tier one ratio of 14.2% at year end. Our internal target ratio remains unchanged at 13.5% well above our minimum regulatory requirements. And this prepares us for future economic downturns and also allows us to think about acquisitions in future. It is obvious that we want our shareholders to share in our profits. At the last Annual General Meeting, which was held in October the previous year, a resolution was passed to pay a conditional dividend of €0.75 per share provided that no regulatory or other reasons contradict this approach.
The
ECB's recommendation and the Chairman already mentioned that did not permit such a distribution. Today in line with the ECB's recommendation, we will therefore propose to approve a dividend of €0.50 per share. In addition, I'd like to inform you that €1 per share has been reserved for a potential later payment. Should the ECB lift its recommendation on the dividend restriction in the second half of the year, which is planned for September. We plan paying out this amount as well.
I would like to take this opportunity to thank you dear shareholders for the trust you've placed in us. Thank you for investing in us and for remaining loyal
to us.
Let me turn to the development of the 2021. Overall, the start of 2021 was pleasing. The operating profit improved by 10% quarter over quarter. Net interest income declined as expected. Allow me to remind you that the Czech National Bank, a very important market for us the Czech Republic was still raising the key interest rate at the beginning of the previous year before it was cut again in the wake of the corona crisis by 200 basis points to 0.25 in three steps.
When talking about the future outlook, I will also explain that we hope that the interest landscape will recover. Net fee and commission income on the other hand developed excellently and amounted to €540,000,000 in the first quarter, a great result. I would like to emphasize the good development in asset management and the securities business. The trading and fair value result is back to normal after the crisis ridden 2020. Operating expenses have continued to decline and despite the fact that deposit guarantee contributions have increased.
As a result, the operating profit has improved significantly and the cost income ratio was 6.3% in the first quarter. Only minor risk costs were booked in the first quarter. And this is what we also see in the general economic situation. We don't see any increase in insolvencies. And this is why risk costs although they won't stay at this low level over the year.
And this is the reason why our risk costs were only of a minor basis in the first quarter. The operating income remained largely unchanged with net income showing a significant increase to €355,000,000 The return on equity was also back in double digits in the first quarter, very pleasing development. Owing to a very good performance in mortgage lending, net loans to customers increased by 1.1% to 167,800,000,000 Growth on the deposit side remains strong increasing by 7.5% since the beginning of the year to €205,400,000,000 This is a record. The loan deposit ratio thus stood at 81.7% in in the first quarter. Credit quality as already said hasn't suffered yet from the crisis.
The NPL ratio continued to remain at the relatively low level at 2.6%. Let me point out in particular that the initial experience after the expiry of the moratoria in almost all our countries has been significantly better than expected and doesn't give rise to major concern and makes us optimistic for the future. Speaking of the future, let's take a look at the economic forecast for our region. The numbers you see on the left hand side of each of this slide clearly show how the pandemic has affected the economies in our region over the past year. While Serbia was comparatively mildly affected with a GDP decline of minus 1% in 2020, the Croatian economy plunged by 8.5% compared with 2019.
In Austria, the GDP decline in 2020 was also comparatively strong at 7.2%. This is not a mere coincidence. The economies are depending on tourism. Tourism restrictions affected heavily affected tourism. There was no city tourism.
And this is why the two economies that I just mentioned were hardly hit. And the other economies Czech Republic, Slovakia and Hungary are very strong in the manufacturing industry. And these industries have almost come back to pre crisis levels. If we look at 2021 and beyond, 2021 will be a year in which signs change and we will see an economic rebound. Our economies expect a recovery across the region.
The basis for optimism is amongst other things a moderate but steady increase in the vaccination coverage of the population. All countries are investing here and we don't only see a decrease in infection rates, but also an increase in the vaccination coverage. And on the basis of this vaccination coverage, we hope that we won't need any further lockdowns, which have hit our industry so hard and we hope that a gradual return to normality will be possible. GDP growth is expected to be strongest in Croatia at 4.5 and Serbia at 5%. However, the economies of Hungary, Romania and Slovakia should also grow by more than 4% in the current year, only the Czech Republic is slightly lagging behind with an expected increase of 3.3%.
These figures are from the month of April. I do not rule out that this forecast will be revised upwards again. In any case, I look forward with confidence to the second half of the year when many things will have recovered people and the economy. Against this background, we are very confident of increasing our net income in 2021. Among the factors enabling this are economic recovery, the decline in risk costs and an improvement in operating profit.
We expect net loan growth to continue to increase in a low to mid single digit percentage range. This development should keep net interest income stable despite negative interest rates in the Eurozone. As far as the second important revenue component is concerned, net fee and commission income, we are aiming at an increase in at least the mid single digit percentage range. As in 2020, fund management, the securities business and insurance brokerage should have a positive impact. Given the average result in 2020, we expect a higher net trading and fair value income.
Of course, this depends on the development of the financial market. Although accurate forecasting is difficult in the current COVID-nineteen environment as the group assumes risk costs of a maximum 65 basis points of average gross customer lending for 2021. An adjustment of this forecast and a hope that a downwards adjustment is dependent on the progress of the vaccination coverage. Because the development of the health situation will determine, the end of the lockdowns, investments of companies and thus are creating growth again. Due to the expected expiry of government support measures, the NPL ratio is expected to increase from 2.6% to around 3% to 4%.
The CET1 ratio should remain at a stable and solid level. Our target ratio will remain unchanged at 13.5%. The other revenue components will remain stable by and large. Overall, revenues are expected to rise again in 2021. Operating expenses are expected to increase slightly in 2021, partly due to reemerging wage pressures in all Astegroup markets.
In addition, Astegroup will continue to invest in IT and thus in its competitiveness in 2021. Progressive IT modernization, back office digitalization and the expansion of the digital platform George will be the focus. Since February George has also been available in Hungary. It's very successful there enabling customers in the six largest core markets to use our digital platform. In total, we already have over 6,000,000 users in these six countries.
We will also to continue to develop we'll also continue to develop Georgian ad consulting and other product elements for example. For a few weeks now, it has been possible to take out accident insurance in Austria or supplementary private pension insurance in The Czech Republic through George. Using George Pro, small businesses can structure current income and expenses or larger projects since mid April. In addition, the new plug in allows to manage invoices and analyze cash flows after the next months. Ladies and gentlemen, I hope that I've been able to give you a good overview of 2020 and the 2021 and that I've been able to justify my optimism for the current financial year in a comprehensible way.
Before ending my report, please give me another five minutes of your attention for a topic that is very important to me. Our bank looks back to a history of more than two hundred years and according to the Articles of Association is responsible for wealth in the region. There was also always a tightrope walk between the regulator economic cycle and societal changes. We continue to play our role in a responsible way, responsible towards our shareholders, our customers and we will stay in the center of the company. The crisis has been hard.
But I hope the crisis is marking a turning point. There is a reorientation of thinking between global economies and local resilience. We have become more flexible. We can manage unprecedented situations. And at the same time, we are longing for physical meetings and we are well aware what personal freedom means and sustainability in the ecological sense, in the social sense and in the sense of responsible management are an absolute must in the post corona world.
And I am convinced that economic success can only be possible by taking social and ecological responsibility. Environmental protection, social issues and proper corporate governance I. E. The password ESG and environmental social and governance will therefore be a key strategic focus for Ernst Group in this new age. We have been contributing to societal development with our social banking initiatives and we've had projects for a good five years With funding totaling almost €400,000,000 we financed a 36,000 customers, 6,000 small businesses, 8,000 farmers and entrepreneurs, as well as 700 social enterprises and non profit organizations and are among the customers of the social banking departments in our group.
And this is no coincidence. It's responsibility in action at our bank. All these activities are based on funding of Erste Group and are building lives, building existences through this funding. Ladies and gentlemen, we used the year 2020 to prepare for another focus BE of ESG. We've set up a responsible finance policy and realigned our lending rules.
The recently communicated decision to phase out of coal financing by 2030 is the result of this policy. I'm well aware that there are viewers who would like to see a faster pace. I understand that. But at the same time, I ask you to understand that as a bank we have an obligation to accompany our customers carefully through this transformation. We have long term contracts.
We have long term trust relationships with customers. We all have to play roles on our path towards climate neutrality and the sustainable life on this planet. Turning off credit lines too quickly would either mean that we cause damage and the transformation cannot take place or maybe radiators in some homes which I call very quickly. Social banking means responsible banking.
Ladies and gentlemen, I'd like to talk about EU €750,000,000,000 recovery fund will unleash economic forces. And we are preparing to strengthen that. And this will be a growth factor, a growth factor that will be sustainable with green jobs, and we are ready and preparing for it. Following the placement of our own green retail bond for S IMO and the placement of the first green and sustainability linked bond for Verbund, we recently issued our first sustainable bond of our own. It is worth $05,000,000,000 and it was more oversubscribed in 2x.
Classified as green and subsidized housing projects in Austria certified according
include to both environmental and social criteria. We expect that funding activity to continue to grow and increase for the rest of the year and the focus of bank insurance will therefore largely be on ESG issues. And we're not excluding ourselves either and are making our contribution by effectively reducing our own carbon footprints to climate neutrality. Since our countries signed a Paris agreement, this figure has now been reduced by 25%, meaning our own carbon footprint. Our first campus here is already powered by 100% green electricity and we use rain water and district cooling.
We have eliminated 85,000 disposable cups since the middle of the previous year and reduced CO2 emissions by 11.6% to 57,492 tons. Energy consumption that is fossil fuel consumption was reduced by 5.3 to three forty gigawatt hours. And in December 2020, we set up floors above us here, photovoltaic system with seven sixty four modules covering an area of about 2,000 square meter. This turns the Esteban into a small power plant, able to produce 250,000 kilowatt hours. This is equivalent to the energy consumption of about five branches or 125 households, dear shareholders.
I know that all of this is not enough, but it is a beginning. We will continue. We know about our responsibility and we will prevail. Thank you for your attention and thank you for your trust. Thank you very much to Mr.
Spauld for this report. And on behalf of the Supervisory Board, I would like to thank members of the Management Board and of course all employees of the Erste Group. Thank them for their great commitment in the 2020 financial year, which was marked by the particular challenges and the particular environment of the COVID-nineteen pandemic. Now on Item two of the January resolution under probation are the retaining earnings. The management board and supervisory group suggest to the AGM to adopt the following resolution that the appropriation of the retaining earnings of 6 and €44,700 in the company's financial account will be made as follows: A dividend of €0.0.5 will be distributed for each share entitled to dividend in a maximum total of two and forty million nine hundred thousand euros The company is not entitled to any dividends from treasury shares.
The remaining and appropriate profit will be carried forward to new account. The dividend payment date is in deviation from Item 20.4 of the Arctic Association, which provides for the payment of the dividend ten days after the holding of the AGM, 05/27/2021. I now give the floor to Stefan Doffler and ask him to explain his proposals for the appropriation of profit. As support of this, I would like to state the following. On 03/27/2020, the European Central Bank published its recommendation ECB twenty twentynineteen on on dividend distribution during the COVID-nineteen pandemic and repeating recommendation ECB twenty twentyone.
The purpose of the recommendation was to preserve capital so that credit institution can continue to play the role in financing households, small and medium sized enterprises and companies and corporations during the economic uncertainty caused by the COVID-nineteen pandemic. On 07/27/2020, European Central Bank extended this ranking mandate until the 01/01/2021, considering that there would continue to be a heightened level of economic uncertainty that it would be difficult for credit institutions to predict the medium term capital needs, ECBtwenty twentythirty five. Deferring or canceling distribution was necessary to maintain the capital position on credit institutions. As this was a temporary measure justified only by the exceptional circumstances, Euro ECB intended to take a decision in the fourth quarter twenty twenty on the approach to be followed after 01/01/2021. And the AGM of Erste Group Bank and AG held on 11/10/2020, it was therefore resolved in line with the proposal of Management and Supervisory Board of the Group for the appropriation of net profit for the financial year 2019 to pay a dividend of €0.3 euros per dividend bearing provided that on the record date 02/08/2021.
There is no statutory prohibition on dividend payment and in the opinion of the company no recommendation of the ECB applicable to the company precludes the payment On 12/15/2020, ECB published recommendation ECBtwenty twentysixty two, which in the company's view was and still is applicable to as the condition of the dividend resolved therefore occurred on the record date 02/08/2021 and did not occur and therefore no dividend was paid for the financial year 2019. The retained earnings in the amount of EUR 6 and 44,700 thousand was subsequently carried forward in accordance with the resolution of the AGM on 11/10/2020. In accordance with recommendation ECBtwenty twentysixty two, which has already been addressed and is currently enforced, ECB considered it would not be prudent for credit institutions in the context of their deliberation on dividend distributions to consider distribution and share buybacks that extend 15% of the accumulated profit the financial year 2019 and 2020 all exceed 20 basis points in terms of the CET1 or CET1 ratio, whichever is lower. Taking into account this recommendation and the current economic environment caused by COVID-nineteen pandemic, Management Board and Supervisory Board proposed to distribute a dividend in the amount of EUR0.50 euros per dividend bearing share and to carry forward the remaining profit.
The proposed maximum distribution amount of 2 and €14,900,000 thus corresponds to approximately 20 basis points of the CET ratio at consolidated as the group level. The payment of the dividend is subject to the capital gains tax in accordance with tax regulations. Thank you, Mr. Doerfle. Continuing on the third item of the agenda resolution approval of the action statement.
Management Board and we suggest that the members of the management board of the Estee Cooper Bankerby are discharged from liability for the financial year 2020. And on the fourth item on agenda, a resolution on the formal approval of the actions of the members of Supervisory Board for the 2020 financial year. Management Board and Supervisory Board of Board Directors Directors Directors of of the of an additional auditor for the audit of the financial statements and management report as well as the consolidated financial statements and group management report for the year 2022. The Supervisory Board proposes that the Annual General Meeting has following resolution, an addition to the Saving Banks Auditing Association as statutory auditor, P. W.
C. Witcherkspur from GmbH is appointed as auditor for the Annual Financial Statements and Management Report, consolidated financial statements and consolidated management report of the company for the financial year 2022 according to Section one of the Auditing Regulation for Savings Banks annex to Section 24. And the justification is PWC, which has put from GmbH, was appointed by the Annual General Meeting of Oste Group Bank AG twenty nineteen as an additional auditor to the annual financial statements and management report, the consolidated financial statements and the Group Management Report 2020. And during the financial year 2020, the audit committee of the Supervisory Board of Hesterbro Bank AG regularly reviewed and monitored among other things the independence of PWC, Wirth of Prussung GNBH in particular with regard to the additional services provided to Caste Group's so called non audit services pursuant to Section 60 three(four) of the Banking Act. And after discussion, any threats to the independence of PWC, Witcher and Gerembein and the submission by PwC, which was pulled from GEMBER of the declaration of independence pursuant to the Section two zero seven of the Austrian Commercial Code and the audit committee recommended to the Supervisory Board the renewal of the PwC, the Jesperson Guillain Barre has recommended for the financial year 2022, the consolidated financial statement and the group management report.
The annual report and for the financial year 2020 shows the fees charged by the auditors and the subsidiaries for the reporting year 2020 as well as by companies of the PwC network. On agenda item six, election to the Supervisory Board. The Supervisory Board pursuant to Section fifteen one of the articles of association, Erste Bank Group consists of at least three and most 14 members elected by the AGM. After the last AGM, 11/10/2020, the Supervisory Board was composed by 12 members. The term of office of Supervisory Board member, John James Sachs, expires at the end of today's AGM as he has reached the age limit stipulated in the Articles of Association and therefore he is no longer available for re election.
One member would therefore have to be elected at today's AGM to reach the number of Supervisory Board members to 12 following the election at the AGM on November 1020. If 12 Supervisory members are elected by the AGM, at least four seats on the supervisory report must be occupied by women and men, respectively, and this in accordance with the paragraph 86, Section seven of the Stock Corporation Act. This requirement is met by the supervisory board. This is composed in accordance with the following election proposal. The supervisory proposes election of Michel Schuster born 05/22/1980.
Unfortunately, Mr. Schuster will not be able to introduce himself personally at today's Annual Stockholm AGM and so I will do so following the presentation of his curriculum vitae. A short introductory video is shown and has been made available on our company website. Michel Schuster has been Founder and General Partner of Speed Invest, a European venture capital fund specializing in investment in early stage companies and startups since 2011. Due to his academic background in computer science and economics as well as his many years of experience in the IT industry and an investor in startups, Michel Schuster can make a valuable contribution to the work of the Supervisory Board and complement its expertise, particularly in the areas of innovation, IT and digitalization.
For the rest, I refer to his curriculum vitae, which was made available on the company's website on 04/20/2021. Now we will show you a short video introducing Mr. Michel Schuster.
My name is Michel Schuster and I'm an entrepreneur. Ten years ago, I co founded Speed Invest, a European venture fund that invests in seed stage. In the past decade, we've invested over CHF400 million into 180 startups reaching from Slovakia to Portugal, from Croatia to Finland. Before that, I ran multiple startups myself, always trying to find ways to bring digital innovation to customers. Being innovative is hard in today's world.
It's even harder to stay innovative, especially if you're in a highly regulated and contested field such as banking. With George, ERste has done something remarkable, create a digital platform that people love. With my expertise and experience, I will be a trusted advisor for the next generation of innovations within ERste And I very much look forward to this opportunity with humility and anticipation.
To them whether they've approved Whether the candidate would contribute to the collective suitability of the Supervisory Board as a whole and that according to Section 86, Paragraph seven and as of Section 87, Paragraph 2A of the Stock Company Act, the candidate proposed by the Supervisory Board has submitted declaration pursuant to Section 87 of that law, which is available on a company website and registered in the commercial register. The nomination committee came to a positive assessment of Mr. Michael Schuster and recommended that the Advisory Board proposed the election of the candidate to the AGM and the Supervisory Board concurrent with this assessment. And the term of office of three years is therefore also set. I will now read out the motion in accordance with the resolution proposed by the Supervisory Board.
Supervisory Board proposed that the annual AGM adopts the following resolution. Mr. Michel Droussard, born on 05/22/1980, is elected to the Supervisory Board of Aster Group Bank AG with effect from the end of the AGM until the end of the AGM resolving on the discharge of the financial year 2023. Now Agenda Item seven, resolution on the compensation policy with regards to the principles of the compensation of the members of the Management Board and the Supervisory Board. Pursuant to the Articles 78a and 78b of the Austrian Stock Operation Act and in conjunction with Article 98A of said Act, the supervisory board is required to draw up the principles governing the compensation of the members of the Management Board and the Supervisory Board, the so called compensation policy, and to submit these to the vote of the AGM at least every fourth fiscal year.
And whenever there is a significant change, the remuneration policy approved at the AGM on 11/10/2020 has been amended and will therefore be put to vote again at today's AGM. In particular, the variable long term remuneration component for the Management Board was revised by introducing a long term remuneration plan, so called long term incentive plan, which makes the payment and the amount of the deferred variable remuneration dependent on the extent to which certain performance criteria are met over a multiyear period. By taking into account a multiyear performance period, the management board compensation in form of the new long term incentive plan is even more closely linked to the long term performance of ESTHER Group in the future. In effect starting with the performance year 2021, ESTHER Bank AG will use shares performance shares units so called PSUs and cash payments as variable remuneration components. In this way, the variable compensation of the management core management strongly aligned with the shareholder perspective and is designed for the long term.
In addition to the achievement of operational strategic targets, compensation committee also evaluates leadership's quality of individual management, board manage each year, while assessing variable compensation taking into account non financial criteria such as diversity, environment, social responsibility in addition to financial performance, as CEO Mr. Spalt said. Formed Mr. Bern Spalt, as the CEO of Osterbank Group, sustainability has been explicitly set as one of his performance targets to underline the group wide promotion and strengthening of sustainability as an important part of ASG Group's corporate strategy. Further details can be found in a remuneration policy to be put to the vote today and made available on the company's website pursuant to paragraph 78, subsection one, Austrian Stock Company Act.
The vote is of a recommender nature and the resolution is not subject to appeal. Supervisory Board proposes that the Annual General Meeting have the following resolution. Compensation policy with regard to the principles for the compensation of the members of the Board of Management, Supervisory Board is adopted. Compensation policy is attached to the proposed resolution as Annex one. Agenda Item eight, Resolution on the Remuneration Report for the Remuneration of Members of management board supervisory report for the financial year 2020 pursuant to Section 78 and 98A of the Austrian Stock Corporation Act, board and supervisory report of Alistair.
The company shall prepare a compensation report concerning compensation of the members of management board and supervisory report. The compensation report for the last financial year is to be submitted to the AGM for voting for the first time this year and pursuant to paragraph 78 D subsection one and of the Stock Cooperation Act as the vote is of a recommendatory nature and the resolution is not subject to appeal. While compensation policy sets out the principles and framework of the compensation system, the compensation report, which is being prepared for the first time, provides a comprehensive annual overview of compensation granted to the members of Management Board and Supervisory Board in the past financial year. In addition, in total compensation broken down by components, the compensation report shall include the relative proportion of fixed and variable compensation components and explanation of how the total compensation is in line with the compensation policy and information on any deviation from the compensation policy due to exceptional circumstances. On 12/15/2020, the ECB published the opinion on remuneration policy in the context of the coronavirus pandemic, which has been mentioned several times already, recommending that institutions make adjustment to the remuneration policies to limit the impact of variable remuneration on their capital base in the context of the COVID-nineteen crisis.
In addition, ECB called for restraint in variable remuneration and that until September 2021 and in particular to consider withholding a larger part of variable remuneration for a longer period of time as well as paying variable remuneration in the form of instruments as defined in Article 94 subsection one CRD. As a result, the Supervisory Board decided to deviate from the approved compensation policy for the variable compensation of the members of the Management Board for the performance year 2020 and to apply the same approaches for the performance year 2019. The variable compensation granted for performance year 2020 was therefore also granted exclusively in Phantom shares and thus deferred for a further year due to the holding period. Unlike in a regular financial years for the financial year 2020 in the financial year 2021 no cash portion of the variable compensation will be paid out. The award of variable remuneration in the form of Phantom shares was made at a weighted average share price for 2020 of €0.02 $1.03 The payment of the upfront portion of the variable remuneration for the performance year 2020 will not be made before 2022 at the weighted average share price for 2021.
The deferred portion of the variable remuneration for the performance year 2020 is also fully linked to the future development of the share price of Aster Group. Furthermore, the compensation report contains detailed information on the achievement of targets, which with regards to individual performance criteria as well as the assessment of the leadership quality of each individual management board member. Further details can be found in the compensation report to be voted on today and made available on the company's website. It should also be noted that Erste Groupe Bank AG commissioned PVC, which was performed by GmbH with a limited audit for the 2020 remuneration report, in the course of their audit procedures, auditors did not come aware of any matters that would lead them to believe that the remuneration report of Erstekopenk AG for the financial year 2020 does not comply in any material respect with the requirements of Section 78 and Section 98A of the Stock Corporation Act and Section 98A taking into account Aflac Opinion Number 37, remuneration report pursuant to Section 78. C, management board and supervisory board therefore proposed the AGM to adopt the following resolution.
The remuneration report for the remuneration of members of management board and supervisory board of Group Bank AG for the financial year 2020 is adopted. Remuneration report as proposed is attached as annex to on agenda item nine, resolution of the authorization of the management board to acquire treasury shares for the purpose of security trading and therefore give the floor to Stefan Doefler.
All right. Section 65 of the Austrian Stock Corporation Act provides that a bank may acquire treasury or own shares for the purpose of securities training for the purpose of offering the shares for purchase to employees, executives and members of the management board, supervisory board, the company or of an affiliated company involving a private foundation for its intersection four d of the Austrian Income Tax Act as well as for no specific purpose on the basis of an authorization granted by the AGM. The authorizations in questions were granted by the AGM of 2019 for a period of thirty months and expire on 11/14/2021, which is why they have been placed on the agenda again this year under agenda items nine, ten and eleven. Thank you, Mr. Drozov for these explanations.
I'd like to state the following portion of the share capital associated with the shares acquired by the company on the basis of this Agenda Item and following three agenda items ten and eleven together with other treasury shares that the Group Bank AG has already acquired and still holds may not exceed 10% of the share capital. I now read out the proposal in accordance with the resolution proposed by the Management Board and the Supervisory Board. The Management Board and the Supervisory Board proposed that the AGM adopt the following resolution. The authorization of the Management Board granted that the twenty sixth AGM of Este Group Bank AG to acquire treasury or own shares for the purpose of securities training is revoked and the Management Board is authorized to acquire treasury shares pursuant to Section 60 five(one) of the Austrosoft Corporation Act for the purpose of securities trading in the amount of up to 10% of share capital, whereby the trading portfolio of shares acquired for this purpose may not exceed 5% of the share capital at the end of each day. The consideration for the shares to be acquired may not be less than half the closing price at the Vienna Stock Exchange on the last trading day prior to the acquisition.
It may not exceed the closing price at the Vienna Stock Exchange on the last trading day prior to the acquisition of more than 20%. This authorization is valid for thirty months, I. E, until 11/18/2023. All right. Now Item 10, on the agenda resolution on the authorization of the management board to acquire treasury shares for the purpose of giving shares free of charge or at a reduced price to Erste Mitte by the Battalion Privatstiftung to its beneficiaries, to employees, executives and members of the management board of ERS Group Bank AG or any of its affiliated companies or to any other company under Section four d, paragraph five, subparagraph one of the Austrian Income Tax Act, I now give the floor to Stefan Dorfle.
Under the conditions of Section 60 five-one, subparagraph four of the Austrian Stock Corporation Act, listed stock corporation may be authorized by the AGM to repurchase its own shares if the shares are to be offered for purchase to employees, executives and members of management board or supervisory board of the company or a company affiliated with it. With involvement of a private foundation person to Section four d of the Austrian Income Tax Act. With regards to the highest and lowest consideration for these shares, the management board and its advisory board proposed the same ranges as under Agenda Item 11, that is to say, EUR 2 and EUR 120, respectively. As an employee participation foundation person to Section 4D of the Austrian Income Tax Act, EFD Wiederbetter Patrikum Kvatschietung to issue shares in Erste Group Bank AG to these beneficiaries free of charge or at a reduced price and to exercise uniformly the voting rights associated with the shares held in trust and administration. The management board shall be authorized with the supervisory board to acquire treasury shares for the purpose of transfer to Erste Meter Battelle Petitung Ploych Siftung the off market repurchase of treasury shares, excluding the shareholders' rights to offer as well as the statement of the conditions for the repurchase by the management board may only be carried out with the approval of the Supervisory Board.
Also refer to the report of the management board published on the company website. Thank you very much, Mr. Duflo. And I now read out the motion in accordance with the resolution proposed by the Management Board and the Supervisory Board. The Board of Management and the Supervisory Board proposed that the AGM adopt the following resolution pursuant to Section 65 paragraph one, Subparagraph four and 1A and 80 of the Austrian Stock Coverage Act.
The Management Board is authorized by a period of thirty months from the date of the resolution, I. E. Until 11/18/2023, with the consent of the Supervisory Board to acquire treasury shares of the company in the amount of up to 10% of the share capital of the company also by repeatedly utilizing the 10% limit, both by the stock exchange and over the counter also under exclusion of the quota based tender of the shareholders for the purpose of giving shares free of charge or at a reduced price to Estimita by Doctor. Teiligon Rebaccikum to its beneficiaries, to employees, executives and members of the management board of Geste Group, Bank AG or one of its affiliated companies or to any other companies pursuant to Section 4D, Paragraph five, Subparator one of the Austrian Income Tax Act, the authorization may be exercised in whole or in its entirety or in several installments and in pursuit of one or more purposes. The conservation per share may not fall below the lower limit of €2 and may not exceed the upper limit of €120 Reference is also made to the report of the Management Board published on the company website, which is registered in the commercial register.
Now Item 11 of the agenda resolution on the authorization of the management board to acquire treasure shares without earmarking, without a specific purpose. And I now hand over to Mr. Doflagen. Under Section 65, paragraph one, subparagraph eight of the Austrian Straub Corporation Act, a list of stock corporation may be authorized by the AGM to repurchase its own shares without specific earmarking, excluding trading in treasury shares. The Management Board and Supervisory Board proposed that in this authorization to repurchase shares without specific earmarking, the highest and lowest consideration for the shares should remain at absolute amounts.
The range should not be too narrow, so as not to make a possible repurchase impossible even in the event of strong price fluctuations. The treasury shares are to be used in particular as consideration for the acquisition of shareholdings or companies. In this case, it may be advantageous for the company to offer treasury shares as part in part or in full as conservation, for example, to compensate shareholders to target companies. This enables the company to take advantage of market opportunities quickly and flexibly and to cover the necessary capital capital and special financing requirements on favorable financing terms. The off market repurchase of treasury shares, excluding shareholders' tender rights and the setting of the terms and conditions for the repurchase may only be carried out by the management board with the approval of the Supervisory Board as made the sale of shares excluding shareholders' purchase rights, the so called exclusion of subscription rights.
Likewise, any resolution of the management board on the retirement of withdrawal of treasury shares is subject to the Privilege Advisory Board. Also refer to the report of the Management Board published on the company website, which is registered in the company registry. Thank you, Mr. Gerard Flam. I now read out the motion in accordance with the resolution proposed by the Management Board and the Supervisory Board.
The Management Board and the Supervisory Board proposed that the AGM adopt the following resolution. The authorization granted to the Management Board at the twenty sixth Annual General Meeting of ASE Group Bank AG to acquire treasury share without earmarking is revoked. And Management Board is authorized pursuant to Section 65, Paragraph one, Subparagraph eight as well as paragraphs 1A and 1B of the Austrian Stock Corporation Act for a period of thirty months from the date of the resolution, I. E, until 11/18/2023. The Management Board is authorized with the consent of the Supervisory Board to acquire treasury shares of the company up to amount of 10% of the share capital of the company also by repeatedly utilizing the 10% limit both at the stock exchange and over the counter, also excluding the shareholders' quota so called tender rights.
Rights to offer the authorization may be exercised in whole or in part or in several installments. And in the pursuit of one or more purposes, the consideration per share may not fall below the lower limit of EUR 2 and may not exceed the upper limit of EUR 120. The management board is authorized for a period of five years from the date of the resolution or until 05/18/2026 pursuant to Article 65, Paragraph 1B, in conjunction with Article 171 of the Stock Corporation Act with the approval of the Supervisory Board to sell or use treasury shares of the company for any legally permissible purpose other than by the stock exchange or by means of a public offer. In particular, as consideration for the acquisition and to finance the acquisition of companies, businesses, parts of businesses or shares in one or more companies in Austria or abroad. And in this context, also to exclude the shareholders' quota based purchase right exclusion of so called subscription rights.
The management board is authorized with the approval of the Supervisory Board to redeem treasury shares without further resolution by the AGM. Reference is also made to the report of the management board published in the company website, which is registered in the commercial register. And this concludes the presentation of reports and proposed resolutions of the Management Board and Supervisory Board on all agenda items. I now give the floor to each of the special proxies. Please let me know let me know whether any motions or resolutions have been received from the proxy shareholders.
If yes, please read them out. If no, please confirm that you have not received any motions for resolution so far. And I now give the floor to Nikolaus Arndt Sammain. Thank you, Mr. Chairman.
I represent 132 shareholders with a given number of shares, and there are no motions for resolutions as far as these shareholders are concerned. Thank you. Thank you very much, Mr. Adam Salmon. I now give the floor to Mikhail Knapp, proxy Mikhail Knapp.
Mr. Chairman, thanks for giving me the floor. I represent five thirty two shareholders, 42,221,565 shares and no shareholder has provided me with a motion. Thank you. Thank you, Mr.
Knapp. I now give the floor to Christoph Nauer. No motions have been provided to me by the shareholders that I represent. Thank you very much, Mr. Nauer.
And this here is presence here. So in accordance with Section 117 of the Stock Corporation Act and the list of participants I assigned, 3,426 shareholders are represented by the four special proxies who are authorized to cap votes amounting to 340,715,869 votes, which means that the AGM has a quorum on the items of the agenda. The list of participants is handed over electronically to the four special proxies. For reasons relating to data protection, we refrain from displaying the list online. And now the general debate, meaning reading the questions and answering the questions, I will read out the question of the shareholders and either myself or other management board members will then respond to these questions.
A few shareholders have already made use of this opportunity to submit questions by e mail prior to the AGM. These questions will be dealt with first, and we will also read out the answers to these questions. In line with our tradition, we will start out with the questions put by Mr. Staller and a short introduction that I want to read out. The Chairperson of the Supervisory Board is glad to then read out the question of Stallagibbrand, represented by Henrik Hubert Stallag and to read this question in entirety.
Staller Investment GmbH, the shareholder, has voting card 1885 and Michael Knapp from IFA Interrechen Verbat Andiger is the representative. So the shareholder also states the following: Ladies and gentlemen, today is the big day of opening in Austria. Hotels, restaurants, theaters and opera the opera and amusement parks, well, everything is open now. So this is what holds true for real life. This does not hold true for the AGM.
Again, it's a virtual AGM in line with the COVID-nineteen ordinance. Now everything has become virtual because of the pandemic, of course. Many people consider this an imposition, a major restriction. And I'm actually sick and tired of this virtual fake world. I would be remiss if I didn't mention this.
So I'm very much looking forward to tonight. Tonight, there will be a performance of Faust Vienna State Opera. But let's look into the future, what does the future of F Group AGMs hold. That was Mr. Staller, our representative.
And thanks for using such sophisticated language. When talking about restrictions, he could have also made some rather pithy remarks. Okay. A few questions that will be answered now. So in line with what I've just read, let me read out something that is directed to Mr.
Schwalde. Are you looking forward to the next in person AGM of ERSE Group? And what will you change and how will you make it more attractive? Well, thank you very much. As I've already pointed out in my presentation, there are many advantages and disadvantages connected to virtual meetings.
We miss a lot of things and some things are, of course, troubling and irritating. So we've had twelve or thirteen or fourteen months with many, many Supervisory Board meetings and other meetings and we know exactly what the advantages and disadvantages of virtual meetings are. Now in view of the experiences we've gained, I would say that virtual AGMs should also take place in the future. As to the specificities, well, we think that decisions will have to be made soon and preparatory work will have to commence soon. Important work needs to be carried out.
It's not just the interest of companies, meaning a safe AGM environment, but also the interest of shareholders and their questions and shareholder participation. All of this needs to be taken into consideration. So in the weeks and months to come, we'll try to optimize the format of AGMs and both, of course, consider the pros and cons. So that's what we'll do. Thank you very much.
Now from the point of view of the Supervisory Board, let me just say that we're closely connected to shareholders and it's very important for us to enforce the right held by shareholders. And of course, we'll look into the legal requirements to be met next year. The COVID-nineteen rules, of course, are set to expire at the end of this year. Okay. This brings me to the next question to be directed to Mr.
Drfla put by Mr. Staller. Now let me mention two groupings and thank two groupings within the bank. I would like to thank Investor Relations and Accounting teams of Erste Group for the management report. Now as it behooves a bank, this report is boring, but as far as the substance is concerned, it's quite informative.
Now I quite agree that a lot of work went into the reports made up of more than 300 pages. Thank you. But one thing you have to explain in the balance sheet, in deposits by customers or under deposits by customers, it says 190,000,860 sorry, €190,860,000,000 It's the same €190,000,000,000 €160,000,000 that you find in the Annex 2019. Now in the summary and in the indicators at the beginning of the management report, it says €191,070,000,000 So question to be put to Stefan Doerbla. Have I made a mistake?
What about the €254,000,000 worth of customer deposits? Have I lost them somewhere? Well, you very much, Mr. Staller, for these words of praise you found for the colleagues working in those teams. And I very much agree with those words of praise.
The colleagues you mentioned do a sterling job and they have a lot of work to do, but the result I think is something that we can be quite proud of. On your question, you haven't lost anything and we haven't lost anything either. Let me refer to 132 of the German language management report. That's where you have all the details. Now just look at €254,000,000 that's customer deposits at fair value.
And that's why and that's under liabilities. So it's financial liabilities at fair value. Customer deposits €254,000,000 whereas the other amounts financial liabilities deposits by customers at $190,860,000.00400000 euros as at the date of the balance sheet. So nothing is lost. It's just under different items.
It's just listed under different items, but nothing has gotten lost. Okay. Next question that's displayed, it's put to Mr. Schauppler, but actually it alludes to a question put by Mr. Staller before.
So there's a risk banks may actually play a secondary role as credit mediators between the ECB and customers if the ECB were to come up with a digital currency. So the question to
be put to Mr.
Schauffer is in light of this, what are the right investments and what are the wrong investments to respond adequately to this risk or danger? Well, the digital euro idea has been around for a long time. The ECB said that in five years' time, it may actually start implementing things. Our job is to prepare our customers in an optimum fashion, so that they can actually benefit from these developments in the past. As was said by the new Supervisory Board, in the past we've already come up with George and this platform has shown that we maximize customer benefits.
Our job is to make it more attractive, even more attractive, so that usage can be optimized. So the ECB is considering coming up with payment transactions, but digital one. But I think that it's our job to offer services to customers that place them at a more advantageous position compared to other banks. Thank you. All right.
The next question goes to Mr. Spalt. Hafalfa Anschatloo Services. Gimberhard is responsible for AGMs. It's the most important IT and service provider for AGMs in Austria.
And the question is what is the strategy that you deploy and what investments are you making in this company so that AGMs can be adapted in the digital era and so that they can become more attractive? Let me just refer to hybrid agents. Thank you. Well, half of Anscharlundski G and B is very successful in its market and is well accepted by customers. Half of Anscharlundski G and B during the pandemic showed that necessary and we're are working working on on a a strategy.
Strategy. This strategy of course depends on legal requirements as was already said by the Chairman. Right now having a virtual AGM is well is a possibility, but only until the end of the year. So we're working on a strategy. It depends very much on the legal framework and how it will develop and the legal opportunities that we'll have in the future.
AGMs as in person meetings or virtual meetings or hybrid meetings, these are the three options half of Anscharlundske and BR will respond to any of these changes and will be prepared to accommodate changes in this sector. Thank you. Now the next question is directed to Mr. Blajo. Now over the past three years, have we actually granted loans to political parties or associations affiliated with them or institutions?
If yes, what's the amount and who have been the beneficiaries? Thank you very much for this question. Now first of all, let me stress that because of banking secrecy, we cannot divulge information relating to customer relations and loans grant to customers and the like. Let me also stress that as far as financing associations and parties is concerned, we of course comply with lending criteria as well as regulatory requirements. All of this is taken into consideration.
Let me also say quite generally that financing or finding political parties and associations is not a major business as far as corporate clients go or any other activities. Thank you. Thank you very much. The next question concerns remuneration policy and is directed to myself. Let me read out Mr.
Shah's question. Ladies and gentlemen, during the AGM on the 11/10/2020, we dealt with the remuneration policy for the management board. 133,000,000 no votes. Well, that was a clear answer to what I said at the time. It was just blah, blah.
It was platitudes and truisms only. But today, of course, we have to deal with this again because the variable long term remuneration component has been reviewed. So the so called reviewed version of distribution remuneration policy for Board members of AG. And I am also reviewing the statement. Well, it's again just blah, blah, blah, full of platitudes, full of truisms.
Now voting on this banal set of goals is irrelevant. In accordance with 78 of the Stock Corporation Act, this is just a recommendation. So I will again cast a no vote. Ladies and gentlemen, dear shareholders. Now there is someone I appreciate a lot PWC BietjschevtgwerkmgmbH.
Interestingly, the Management Board and Supervisory Board tasked it with the review of the remuneration report for the fiscal year 2020. Unfortunately, this audit was only carried out based on limited security. But of course, there was a logical explanation for this. And I again quote from the audit reports conducted by PwC when auditing a document under limited security. Now the audit work that is less comprehensive, so that lower security a lower security level is achieved.
Ladies and gentlemen, I'm sure that you will understand now that this remuneration report submitted for the first time will be or has been reviewed by me in greater detail. Total remuneration for 2020, this refers to active and former members of the management board. Well, this amounted to €18,550,000 including a modest vacation supplement amounted to 60 EUR64000. Now in the small print, we don't really get information as to whether this supplement has been part of his total remuneration. We, the former Board member well, Midnof and Sigler, well in 2020 they still fare quite well financially.
That's nice. That's nice to have. But Andreas Treichler is an adviser. And in 2020, he made 5,200,000.0 including severance pay. So we hope that he will have quite enough.
Ada Abarhamian was a Board member for a brief period of time. So the Chairperson of the Supervisory Board, I'd like to thank him. Why has he been withdrawn and why is he no longer a Board member?
What is remarkable? Mr. Stalas also writes I with a capital I, I don't know what that means. Okay. We're taking this very seriously.
And let me comment the following. In fall twenty twenty, we published our remuneration policy, which was adapted, due to the feedback of, the shareholders and we published the remuneration report. And you can read the details of policy in the remuneration report. We tried to be absolutely transparent and include all parts of remuneration of our members of the Management Board and the Supervisory Board. You mentioned €18,550,000 for the Management Board and former members of the Management Board.
Let me emphasize that payments to previous members of the Board are in line with their contracts and we have a maximum of a twelve month one off payment. The severance payment of Mr. Treiche doesn't have anything to do with his consultancy agreement. It was the legal severance payment that he had been accumulating since he started his activities for more than twenty five years. This severance payment, we have provisions for this severance payments over the past years.
As far as Peter Bostek and the payment for non consumed vacation is concerned, this is not included in the total remuneration because it is a legal entitlement. As far as Mr. Abramian is concerned, we severed in this his contract in mutual consent. We said that we want to focus on George and extension of George and this is why Mr. Maurizio Polletto is the right person to supplement our team.
So much for this the answering of this question. Next question goes to Mr. Bleier. As the asset management at the 2020 managed €68,200,000,000 What is the strategy you apply in order to make asset management attractive? And what about the medium range goals?
Thank you very much. I'm happy, to that you ask a question relating to asset management. As you said, we have more than €68,000,000,000 assets under management. At the end of the first quarter, this has increased to €71,000,000,000 and we are the leading asset management company in Austria and Eastern Europe. We have an organic growth strategy.
So this explains our strategy, organic growth strategy in the private customer business and the institutional business. We want to attract more customers for asset management together with Mr. Schauppler. We want to attract these customers and we want to, broaden our product range, by sustainable products. We have been a pioneer in this respect and a large proportion of our managed assets are in this respect.
On the other hand, we are investing in real property, and other fields where we are protected against inflation. We issued a fund which is called Real Asset and was very successful in the private on the private customer side. And we think that more such products will help us to grow our business. Thank you very much Mr. Playa.
Mr. Staller isn't quite satisfied that his questions aren't answered as he asked them. I can only read the questions as they pop up on the screen. I see another question relating to the remuneration report. And we terminated his employment on mutual consent and he received 700,000 payments in terms of a contractual payment, which will be paid out in cash in 2021.
Wikipedia is informing us about payments in cash. A payment it's a payment where a person receives cash. Mr. Abrahamian didn't want to have coins. They he wanted to, nevertheless receive cash.
But payment in cash can be defined differently than Wikipedia. We can have a bank transfer and not pay the actual in cash. So payment in cash meant that we have a payment in cash and not Phantom shares or shares or any other payments in kind. Next question directed to Mr. Playa and refers to asset management.
Asset Management manages €68,000,000 €1,000,000,000 I think we already answered this question. Question. To Mr. Spalt. The Alsterstiftung holds 16.5% of the capital shares of the also the Spakassenstiftung increased their capital stocks 3.8% are held by other syndicates partners.
Who are they? Mr. Spike please. 3.8% of shares are held by the Vienna Wexelsatte for Sicherungsvaren for Mogensvar Walton Vienna Insurance Group. Okay.
We have two questions to Mr. Schauffler that relate to the same topic. What about the strategy if the ECB introduces the digital euro? I already mentioned before that, it is an important topic because it will organize our payments in future. Within the next five years, the ECB says, will not happen much.
But after five years, digital euros might take place, so we can offer our customers ways of not paying in cash. And we plan to offer our customers much convenience as far as payments are concerned. It's about the technical opportunities that we can offer. The ECB itself isn't quite clear whether ECB wants to offer a wallet to customers. And of course this will have a certain influence on liquidity directed towards the ECB.
But in 2020, we had many customer inquiries what happened to their money and ECB must be prepared to customer service, must be well prepared in order to answer such inquiries as we had last year. And I think what we offer in terms of services cannot be provided by ECB one hundred twenty one. Thank you, Mr. Schauppler. Next question.
How do you want to prevent that the bank in future is only a secondhand credit mediator between the customer and ECB? And what if others can do it the same way maybe in a more simple way? So far, the ECB does not think about giving loans to customers to private customers. If this happens, I can only say that's due to the long term customer relationships that we have. We have a competitive advantage due to our long relationships what we know about the customer and we know about his personal situation how we can pay back the loan.
Yes, the ECB might think about end to end solutions to customers. But due to the data quality that we have, we think that we can provide services of a higher quality. But we are also thinking about the digital end to end solution for our customers. And this is what Mr. Roedler said before.
This is also our focus as far as George is concerned to offer products and services that which will allow such digital services. And we can already offer an end to end service to the customer risk measurement and the next thing will be mortgage loans. We will have such instruments. Thank you, Mr. Schauppler.
Next question to Alexandra Havela Drabek. And maybe Mr. Spike will also like to comment its question 16 of Mr. Staller. The question is directed to Ms.
Havela Drabig an expert. Why do we have a women's quota of 14% in The Czech Republic which is so low as compared to sixty eight percent overall. Thank you very much for the esteem and thank you very much for the question because diversity is very important to me. This is not only applying to me, but to all of us that are here today and this is why the question will be answered by the CEO Mr. Schweil.
Diversity and not only gender diversity is something that we have always backed. We think that cognitive diversity is a source of excellence and that it will improve the decision making process. We are not happy with the women's quota in our management functions. It's a long way to get where we want to be, but we are on a good path. And if we look at the portfolio of Ms.
Alexandra Havelet Drabek, I would like to point out that we have a more than 50% women ratio. And also on the second management level also have a very strong women's quota. Of course, have departments where it is difficult to employ women because, young recruits are the problem. We have a diversity group that reports to me, a diversity department that reports to me. We set up KPIs for our companies in the individual countries where we want to get which targets we will fulfill.
What we have achieved so far is not satisfactory. Cesca Spojetelna implemented agile structures in the management function. Daniela Peshkova is responsible for the retail business and has a very strong role in Cesca and is responsible for sales in the private customer business. We have KPIs. We have ratios and we want to have diverse teams.
As far as recruitment is concerned, we want to have the same number of men and women as far as recruiting is concerned. The same number of men and women in the management boards will be difficult to fulfill. We know that we are lagging behind in The Czech Republic in Cesca Spudgytlna and I'm sure that we can have can be successful and achieve a lot of progress in the near future. Next question is directed to Mr. Schauffler.
We think we are a financial health company. That's question number six of Mr. Schauble. What are the products of the future of a financial health company? Thank you very much for this question.
We are taking the financial health company very seriously. Let me give some examples. For example in the financial life path, we have a digital investment challenge for young people starting, at the age of 14. More than 1,500 students are already using, this service. We also have a challenge for adults.
For example, how can I plan my financial life? How can I invest? So we're taking, this very seriously because we know that we are a friend of the customer. We accompany the customer. It is important to have the correct information and to give correct and right information to the customer.
Asset Management plays a very important role in our group. UInvest was one of the first asset management projects for small scale investments. We had one time payment and also savings plans and it gave people the opportunity to benefit from an excellently managed service. As far as financial health is concerned, we have a three stage program. On the one hand, we try to inform customers what it means to have liquidity management €372,000,000,000 not interesting bearing in Austria on savings books or in just normal bank accounts.
And it is important to inform customers what their liquidity reserve must be and what they can invest in interest bearing instruments. So first of all, we try to inform the customer what opportunities there are, what savings plans we can offer in order to build up assets. And we also inform people about instruments that it makes sense to invest in securities. We also talk about green invest real assets and we try to explain to the customer that it makes sense to build up assets in the long run. And our consultants are asking customers what they need and we have a very specific interview with the customer about the risk affinity, about what the customers expect in terms of profits and gains in order to offer the best product to the customer.
We are supported by a digital component where customers see how the investments develop. And via George the customer can get information that for example it would make sense to invest more. So it's not only a product package. It's not only investment into the right products. It's about financial literacy.
It's about passing on experience and to offer services to our customers consultancy in the individual branches and what we can offer with George. Thank you. Next question directed to Mr. Spijl. Question number 13 of Mr.
Staller. Did we spend money in 2020 for purposes such as lobbying? If yes, how much and too? As the group is a responsible corporate citizen and of course is trying to support its interests vis a vis decision making institutions in Austria as well as in Brussels and via our subsidiaries and CEE directly in our region. We are very active in the Bankenfasicherungen department of our economic chamber in Austria and I am the Chairman of the legal representation of interests of our banks.
And we are also a member of the Austrian Association of Industrialists. The ASTE Group is of course also registered in the lobbying and representation of interest register in Austria and in the transparency register of the European Commission and also has a code of conduct. In my portfolio, there is a department which is of course dealing with subjects and apart from membership fees for Wirtschaftskaam of course we have costs for personnel. Next question is directed to Mr. Dafler.
Question number four of Mr. Staller. Customer deposits rose €298,000,000,000 This is not an irony of the business model. The bank is drowning in liquidity because credits in 2020 could only be increased by 3.5% to €166,000,000,000 Question, what are you doing in order to manage the customer's money flowing in order to turn them into profit bearing products? Thank you for the question Mr.
Staller. This is one of the most important questions of the past years and will remain, to be such a question for the coming periods. We know about the situation on the capital markets. We know we all know what happened after the crisis. We all know about the trend in interest rates negative interest rates.
Then we had the crisis at the 2010 and the following years. Now we have extreme liquidity on the markets. Our customers in Europe and elsewhere trying to make sure that they are safe in very uncertain times. May I turn your attention to the figures of the 2021? We had 205,400,000,000 customer deposits at the end of the first quarter of this year.
So, the trend has continued unabatedly. But the question is what is the relationship between customer deposits and loan? And our CEO Mr. Spalt already mentioned in his report that the loan to deposit ratio is very low at 81.7% at the end of the first quarter. But not everything is bad in this respect.
Don't forget that a bank that had strong deposits has always been a very strong bank in the past decades. And also this helps us to finance our business plans. And I think you shouldn't ignore that fact. Maybe it's a burden as far as profitability is concerned. But as far as the long run is concerned, I think it is important that we have a balanced position.
What are we doing? We have medium and long run measures, which are reflected in our core business. This is of course giving loans to customers and grow these segments. Of course, this is not as easy as the inflow in a crisis. But in the past years in all segments in all our regions we have grown as far as our loan books are concerned and this will continue to be so.
I am with Mr. Schwalter fully agree with Mr. Schwalter that we will see a substantial increase in the coming months and years in our region. So it's the best way to spend liquidity so to speak and what to use the money of our customers. Mr.
Schaffler on the other hand already said that what is important is our asset management business. Long term asset management building up assets for our customers together with our customers. And it's not about speculation. It is not quickly it's not about quickly quaking money from A to B. It's turning money into profitable investments and building up property.
And then we have short term and midterm measures asset management, liquidity management where we are making use of opportunities in our region. And we are doing that very successfully as the financial market figures show given the difficult conditions of the interest environment that's a challenge that we have to meet on a day to day basis. And last but not least, it's an automatic consequence of negative interest rates policy that we have zero interest rates for customers for the private customer business. And as far as corporate customers are concerned, we have to collect fees for deposits in order to compensate the costs of over liquidity and the costs of the negative interest rates policy. This is a bundle of measures and I do hope that I've answered your question.
Thank you, Zeyra. Thank you.
Another question to Mr. Spalt. Question number 15 from Mr. Staller's list. Please mention the five largest donations in 2020 and the targets of the donations.
I already said in my presentation that we are aware of our role in our society. We think that the civil society is very important. We are think at the in the center of our society and trying to act responsibly for the society as a whole. As far as 2020 is concerned, it was clear for us at ASTE Group that we have to set measures that go beyond, increased commitment for our customers in a crisis in an unprecedented crisis. And we knew that we can only come back to normality once the health situation has been resolved.
And this is why to we decided to donate to the Red Cross, donate €1,000,000 to the Red Cross and this is the largest donations we made. Apart from these donations, we had donations to Agenda Austria, the International Theological Institute, the Association Allianz Human Rights in Austria and the Association Zoom Children's Museum. And the donations ranged between €40,000 and €100,000 Thank you. Two other questions by Mr. Staller that also relates to me questions eighteen and nineteen.
Mr. Schaller writes. John Stack is for age reasons leaving the Supervisory Board. I am skeptical when a personal friend of Mr. Tajki is a member of the Supervisory Board, but this case shows that his work and expertise was beyond doubt.
Thank you very much, dear John Sack. And I think I already mentioned that on behalf of the Supervisory Board. The last question to you dear Friedrich Ruhler. What about 2022? What about succession planning for the Chairman of the Supervisory Board?
This is a very personal question. And of course, the solution depends on various factors. It depends on my state of health. It depends on the state of my energy. Do I have enough energy to assume the responsibility of this term?
And in 2022 not only my term ends, but all about other terms end as well. And the nomination committee will discuss this question. And an additional question please allow me a personal additional question. Can we enjoy your quiet management in the Supervisory Board a little longer? Thank you very much for the virtual attention and I'm happy to receive real answers.
And if I may do this job and if I can do this job of OKA, I will be most willing to fulfill these functions as long as it is required. So much for the questions of Staller. Let me continue with the questions of Mr. Knapp. I would like to apologize to Mr.
Staller that the red thread in answering these questions was kind of lost. But it's the system that presents the questions that way maybe not in the sequence they were asked. Mr. Knap voting card 1944 and he is talking about potential one off effects in 2020. And the question is directed to Mr.
Spalt. And it says, because I too always experienced surprises most recently in Innsbruck for example, I ask only as a precaution. Were we affected in 2020 by the events surrounding Wirecard or Commerzalbeit Mathersburg? If so what were the effects? And in which items of the consolidated financial statements were they recorded?
Thank you very much. As Degrohe
Bank Mathersburg
was not involved in the VENC Wirecard and Commerziaibanc Mattersburg reported in the media. However, Astebanc was indirectly affected by the insolvency of Commerziaibanc Mattersburg and the resulting intervention of Einlagensicherung Austria GEMBHA. As SBausberg has was or is still a member of Einlagensicherung Austria GEMBHA at the time of the insolvency for historical reasons, It allows you to make corresponding contributions to compensate depositors. The estimated total loss for SBASBARKASSE would amount to €17,500,000 and would have to be paid in five installments. The first installment was paid in 2020 in the amount of €3,500,000 and was booked in the P and L in administrative expenses.
For 2020, paid a total of €9,600,000 to Einlagensicherung Austria GEMBHA. In 2021, as already reported in the media, the withdrawal of S. Bauchbergase from Einlagensicherung Austria GEMBHA and its transfer to S. Haftungs GEMPHA was also applied for with the regulator. We expect this change to be completed in the 2021.
If this change is approved, no further contributions will have to be made for the Commerziobankmattosburg claim for 2021 and subsequent years. Astegroup Bank, Astegbank, Osterreich and Savings Banks, which are united in an independent deposit guarantee company the S. Haftenski and Berard did not have to make any financial contributions.
Thank you, Sean. Thank you very much. Next question from Mr. Knapp is on Romania and goes to Mr. Dovio.
Romania is the only area segment where activity net profits for the period increased from €85,000,000 in 2019 to €123,000,000 in 2020. Bucharest Financial Plaza, the headquarters of a Romanian subsidiary BCR was sold to Immofinance for approximately €36,000,000 and this is from Emofinan's corporate news from the 03/23/2021. Was the sale of the property already anticipated in the Romania 2020 segment result or will it only have an impact this year as a one off effect? And how to determine the selling price, if applicable, expert opinion from which real estate expert is BCR now tenant of Immofinance in its headquarters? If so, for how long?
Or has BCR headquarters been sought, found or under construction? If so, when will it be completed? Mr. Driflo. Thank you, Chairman.
Well, allow me to say two words and a couple of things on Romania because in 2020 and this actually comes already directly out of the question until today in the financial year 2021 is very successful. We have excellent operational results And the risk costs of 2020 have been compensated for by one off effect. So the business in Romania is doing quite well. So concerning Bucharest Financial Partners, The sale was only in the books in the first quarter twenty twenty one. And this according to the Cashman and Wakefield GLL and due to the COVID-nineteen situation, update of the valuation was carried out
in 2020.
The finance sales price was above the value. And no, BGR is not tenant of Immo Finance. We lease the new headquarters, which is the Bridge And Business Garden Bucharest. Thank you. The next question is to Mr.
Leijer and about closing of the London. The subsidiary in London will be closed in 2021. Why is it for saving reasons or for what reasons? Well, with Brexit, we, of course, have a main factor. We have notified that to the financial authorities in London that we do not want to keep our license in The UK anymore.
And we transferred back to Vienna, and we transferred the whole Legend and also for cost reasons, we are in the process of closing. And all the credits have already credit lines have been transferred to Vienna. The next question of Mr. Knap is to Mr. Streib and goes to acquisitions.
Apparently according to an article of the newspaper Courier, there are some acquisitions under investigation in The Czech Republic. And up to now, nothing transforming has been said, but interesting opportunities in all markets and also in Austria are being observed. Most recently, you could see PK business of ING Austria, Dynazaitung 03/23/2021, Hungary business of Germany Commerzbank, DPA in the 04/08/2021 and Kronenzeitung May 1, Europe business of Russian Sberbank again Koenigseitung 05/01/2021. Nova KBM Bank second largest bank in Slovenia from Bergsiana Insider number 193.21%. With a takeover, we would become the market share of 20.5%.
And these things interesting to us as well. Acquisition in Hungary despite VIG's current problem there is acquiring Aegion business. And in which of our markets do we have our sights set on inorganic growth? Well, thank you very much. We are currently observing increased trend towards consolidation on the banking market in our still quite fragmented markets.
And we think this will apply to all markets. And all our markets have a good potential and have a high integration potential as well. If the fit is good and the price are also interesting, we observe all the markets. We wish to have an active role. And as soon as we do have concrete plans, we will issue an information.
Next question goes according to Mr. Duflo. In the table of the figures, our stock exchange capitalization has been the lowest in the last years knowing that the ledger was the highest. And this is a dramatic development and this is for the financial year 2020, Page 111. But there has been no reduction of the value.
And actually, the price per share is still under the value of €34 per thirty first December twenty twenty. So what steps do you take so that the price per share goes towards the ledger price? And I know that there are different measures taken like the acquisition of own shares. For the time being, we are 6% of our own capital and this is the report for the financial year 2020, Page two eighty two, note 44. So thank you very much.
Mr. Knapp, yes, you most probably know that and your question is a very important one. Many things have changed. And I have a look on my chart. We are at 34%, 39%.
So actually these answers already part of your question. In general, we cannot take into account the daily value of our share because we have to manage our company, our group in a profitable long term basis and therefore also be responsible to our investors. And you know that because of the COVID pandemic related situation, there have been huge changes in values. And for instance, yesterday the closing was at the EUR7.4 billion, so EUR4 billion higher than at the 2020. And the trend is positive and analysts also are convinced that the outset will be positive and you will actually see that in the group board as well.
As far as your question goes for the share buyback, As an alternative to dividend payments, the supervisory authority makes no distinction both amounts to reduction in the capital position. And the hope is that ECB's restrictions on dividend payments expire as it has been said by our CEO and our Chairman Rudler as well that with the September 2021, will be in a position again to pay dividends and as well as buybacks provided there are no other opportunities for capital utilization. And of course, we are ready to do that. And we have to take also into account other points for share buybacks. And for the time being, we do not have any concrete plans doing so.
Yes, the book value is at about €34 by the end of the year. Q1, we don't have any book value and the book value discount to the share price has been resolved and it's only a quarterly value that is being published. Thank you. The next question of Mr. Knapp is to Mr.
Schwal. In the Corporate Governance Report and in the on Page 94, you have all the different functions. Peter Basek was the Vice Chair of the Supervisory Board of Biena Steticherta Sicherring AG Vienna Insurance Group and the question was will that be will he be replaced and by whom? Peter Bossek actually in the course of his career change resigned by the 2020. And so far, we have not appointed a successor.
Thank you. And also, Mr. Technat, please accept our apologies. It's not in the order in which you ask the questions that we deal with them, but I have them on the screen. It's about the democracy of the shareholders meeting and this has been actually past five weeks ago.
Bank in while back, was not a savings bank, actually now has a new cost of €50 plus 20% of BIT in order to actually be registered for an AGM. This is the end of a democratic AGM. And you should not forget that the bank also has depot fees. And therefore the question is, do you have fees for the allowance of participating to AGMs? And if not, do you actually have plans in doing so in the medium or long term?
Thank you very much. Well, the saving banks are, of course, entitled to take their own decisions. And we have a very uniform policy as far as our fees are concerned. And we do not have any fees for the depot certificates for Austrian companies. For foreign companies, yes, we do.
And we whenever have such a request for the certificate, we always give the information what the costs will be. Thank you. And there are still a number of questions and they are all to Mr. Havilah Daharweg. First of all, the the two audits and references made to Pages six and one hundred and three of financial year 2020, The audits have been done in Citi and the Cementing.
That remarks have been made to the loan, IT and risk model that still were open by 12/31/2019. Have these points been dealt with? Well, let me first of all say again on-site audit. On-site audit is not extraordinary. That is a normal happening.
And this is also usually inscribed in the regular audit plan. So on a regular basis you have on-site audits. As far as the open points are concerned, we have closed twenty nineteen and the open points 48 as being dealt with in the timely framework that we actually convene together with the authority. Then okay, thank you very much. What is actually the workload with in situ products.
Well, we shall not underestimate that. It's quite immense. And has been taking place in 2019 and took place in 2020. On average, we have three months per audit taking 100 to 200 data sets need to be made available. And this leads to the fact that such an on-site audit, you have 10 to 30 employees that are almost exclusively working on these requests.
Twenty twenty COVID pandemic have not made things easier. This is a heavy workload for all the colleagues involved. I can also give you contribution for the different credit institutions, FMR. For the year 2019 paid in 2020, we paid €13,000,000 And for the year 2020, we don't have the figure yet. Very Thank much.
The next question again to you Ms. Havela. For the year 2021 there were some financial scandal And for the hedge fund, Archibos Capital or the Greensill Capital, is has the bank group involved? And if so what amounts? No.
We had no business relations with Aqueous Capital or Grinsyl Capital or Grinsyl Bank and has no implications with other financial scandals be it national or international. Thank you. So next question again to you Ms. Harald Hravik. What are the authorities that led the regulatory agencies conducted on-site inspections?
Well, in 2020, following on-site reviews took place with the reviews commissioned by the ECB performed by national supervisors due to COVID-nineteen. 2020 on-site reviews have mainly taken place virtually and covered credit risk for SMEs, small and medium enterprises group large corporate, process oriented, and credit and market risk models. One group large corporate inspection was actually not led, so no final report on it, just recommendations. And then last question also to you, Angela. What are the main recommendation material findings were addressed by the supervisory authorities, which material findings of the regulatory authority have been implemented and which in our areas of activity.
The majority of the findings related to models, validation, data quality reporting documentation and policies to be very concrete. As of 2020, the findings were allocated to the following areas: 72 finding in credit risk methods 14, group security 12, credit risk portfolio. All the findings were addressed by a risk mitigation plan agreed with the supervisory authority and being processed. And many of the findings have been or will be closed during the year twenty twenty, twenty twenty one. Thank you.
This was the last question of shareholder Knapp. And because it is almost one p. M. I would like to actually take the break. As initially said, we have twenty five minutes break.
It is six minutes to one p. M. And I therefore suggest that we reconvene at twenty past one. I now interrupt the AGM for this break. Thank you.
Dear shareholders, ladies and gentlemen, we'll now continue with our AGM. We'll continue reading out and answering questions. Let's now move on to the questions put by Josef voting card 999. Now he also asked that a prologue be read preceding the questions. Josef Warnmuller states the following.
Dear Professor Ruhler, ladies and gentlemen, it's an honor to put 14 questions to you and to contribute to the success of the Geste Group's AGM and hopefully also to enriching an important subject. Now what we see is that sustainability becomes more and more important. Sustainable finance also becomes more important. And then I've also had a host of talks with representatives of the company, the stakeholders and those accompanying the company in the market. And I'm very grateful for this.
With a view to the topics of relevance today, The past fiscal year and the first months of 2021 have been quite interesting, and I would like to judge them in an ambivalent fashion. So there's a plethora of documentation and processes that have been set in motion driven by a massive EU regulations as well as the coal exit strategy. Erste Group took a first leap in this connection and others followed suit. And then non financial we that we have seen past. Corruption and anti bribery policies.
Well, And technically speaking, technologically speaking, these are developments that must be recognized and acknowledged and appreciated. But what we also should point out is that in many other areas, players in the market have launched broader initiatives and have garnered public attention. Many experts feel that these initiatives have been more prominent than the achievements made by JASTIBANK Group. So in the European financial sector, there's a lot of pressure exerted on players. It's my hope that those responsible will pay heed to this and will respond favorably to this and will actually steer YESEKUK towards more and greater sustainability.
What are the preconditions for this? Well, I think Essipeg Group is well positioned to achieve headway and it also has a considerable size. So I think it's well placed to make additional progress. Finally, I would like to thank all employees at all levels of the company. Thank you for your commitment in this very challenging year 2020.
You've already achieved first success and you've made the success possible. In terms of non financial reporting, let me briefly mention Mr. Jagerci and Emile Jean Nort. Let me thank them very much for their untiring commitment. I wish you all the best for the future and I also wish you a lot of health in these ambivalent times.
So that was a letter I received from Josef Baummuller. And, let's now turn to his questions. The first questions are directed to Mr. Spalt. Now could you briefly explain that in I would like to ask you briefly where you stand in your implementation projects that you took on your regulation and what further steps you are taking to ensure timely preparation for the associated reporting and management obligations.
For the general understanding of the audience, I would also be grateful if you could briefly explain the content and requirements of this regulation in general and for Erste Group in particular.
Mr. Schweidt?
Well, thank you very much Mr. Baummuller for the prologue and this very constructive criticism that you leveled at us that I take seriously. Such a dialogue, of course, helps us improve our performance and develop further. On your question related to taxonomy, now reporting on sustainable activities for fixed. Well, let's say that on the 01/01/2022, well this new directive is to be transposed into national law.
Now details and specific aspects will be then published in June 2023. EFTEGO, of course, will focus on implementation and will to meet all the requirements. It's a work in progress. Some requirements are not clear yet. Some requirements have only emerged quite clearly.
It's a path that we have already embarked on and we will make sure that all of these requirements can be met in a timely fashion. Now standards on other objectives, well, by the 2021, they will be enumerated and on the 01/01/2023, they will be implemented. Now the application of taxonomy will proceed in a step by step manner. Now taxonomy is a unified system of classification and means reporting duties at EU level on ecologically sustainable business activities. It's supposed to provide incentives and it's supposed to direct capital flows to sustainable projects.
All right. The next question also directed to Mr. Spalte. Now in light of the draft of the EU directive published on 04/21/2021, which is intended to improve the standards framework for non financial reporting, I would like to ask you for an initial assessment of the need for action that you already perceived for Erste Group as well as your position on this draft directive. Now the new directive, Corporate Sustainability Reporting Directive is to be transposed international law by EU Member States as of the 12/01/2022.
So this is yet to come. Fiscal year starting on or after 01/01/2023 will be covered by the new directive for the first time. Thus, it concerns the reporting year 2023. As the Group Bank AG will work intensely on an implementation. There are major requirements I'm talking about.
Data management, for example, just like other financial and non financial elements, this will be part of our reporting in general. Thank you. And the next question is also put to Mr. Spad. On the website of ERSE Group, under the heading Social Responsibility, the ERSE Foundation is mentioned as the main shareholder.
Now from a sustainability perspective, I believe that this represents a USP, a unique selling proposition of ERSE Group in an overall context. I would therefore like to ask you to explain what role the objectives and priorities of ERSE Foundation play with regards to the sustainability strategy and also with regards to the Este Group's channel business strategy. Could you be as specific as possible? Furthermore, I would like to ask you to briefly state through which specific activities in the area of sustainability as a group can make the greatest contribution to the goals and priorities of KeyAste Foundation. What role do social or sustainability innovations play in this context and what measures are being taken in this direction.
Thank you. All right. A wave of introduction. Now ERSE Stiftummer Foundation is our shareholder. It's an organization independent of ERSE Group and therefore does not participate in the group sustainability strategy.
However, and you're right, it's a USP, a unique selling proposition. Our business purpose is generating prosperity for the region and the purpose of the foundation is actually quite similar. So there's a close alignment regarding the goals of these two organizations or entities. And this of course drives efficiency goals forward in our region. So yes, I agree with you.
We're cooperating quite closely, but we are independent of each other. And there is an alignment, as I've just said, regarding the goals of our two organizations. And we've also jointly initiated several projects in the area of social banking such as Zweid des Farkasse, which you know, it's a very important project involving the bank and the foundation. And then there is also social finance holding, which has proven to drive joint innovative thinking and this has a positive impact on society. As part of IASE Group's ESG strategy, we aim to further strengthen the social sector, the financial inclusion of low income individuals and job creation goals, leveraging Yazde Foundation's network and experience if and when needed and this is what we do on an everyday basis.
Thank very much. All right. The next question is put to myself. So what about the current legal framework? What about non financial reporting?
Couldn't the Audit Committee deal with this? And then the Commission came up with a proposal on the 04/21/2021 on how to improve non financial reporting. So please share with us if the published non financial report has been dealt with by the audit committee and what specific audit action has been taken and what expertise you will find in the audit committee or it needs to be built up. Well, let me say this. The consolidated non financial report has been dealt with and is being dealt with in the Audit Committee is discussed in great detail before it's handed over to the extended body.
The Chairperson of the Supervisory Board myself, I'm also the Chairperson of the Audit Committee. Well, I've been involved in the selection of the auditor of the consolidated nonfinancial report and have always been informed about the status quo of reporting. The auditors, of course, have been invited to audit committee meetings to receive or to submit written and oral information and to be at our disposal for questions, the Supervisory Board Chairman and the Chairman of the Audit Committee myself. Well, during the year, I deal with legal amendments as well as recommendations pertaining to non financial reporting as well as sustainability. And of course, the very important contributions you make, Well, I read them with great interest in journals trade journals.
Okay. The next question put to me as well. It's a demand that's been met that's been made now to actually appoint a sustainability expert in the management board just like you have financial experts as a role model in the audit committee. So an example from the ATX Prime is the Austrian Post and other companies too are also considering this. So as far as the Supervisory Board of ESEK Group is concerned, this has not yet been considered.
So is there a need for action and are further plans underway? Of course, it's important for this person to meet all the requirements, But let me also refer to the usefulness of this position because the financial expert has proven to be quite important. Well, are no regulatory requirements. I mean to actually have such an expert at the Supervisory Board. But regardless of the name sustainability expert, we have to point out that sustainability is quite an important issue for the Supervisory Board in its entirety.
The Supervisory Board is quite diverse and quite complex and discusses these issues at great length. So we believe that the chairperson of the Supervisory Board and the members of the Remuneration Committee and myself, we believe that all of us will focus greater attention on the issue of sustainability. And we will also, of course, make contributions to discussions, we'll educate ourselves further and we also will organize training events for Board members. There are individual supervisory Board members who as far as specific issues of sustainability are concerned are specialists. Let me just mention Mr.
Hadek, my second deputy, who knows a great deal about agriculture. And he knows a great deal about agriculture as well as sustainability. And I myself, while I'm an anti corruption expert, I'm a board member of Transparency International. So really across the board, no pun intended, there is a great deal of expertise. But of course, we'll evaluate things further and we'll see whether it makes sense to actually have a representative bearing this title on the Supervisory Board.
Which brings us to the next question put to me. What are the sustainability contributions? Mr. Schuster is alluded to here. Well, what contributions has he made in terms of sustainability?
Well, Mr. Schuster is not present today, but we have collected answers from him and I'm going to read out his answers. For years, we have tried to enhance diversity on the team and whenever investments are made. Since last year, we have set ourselves clear cut ecological goals. We are assessing our investments accordingly in a very structured manner by applying ecological and social criteria in order to tap into potentials.
We also want to raise awareness. We want to enhance sustainability overall. This, of course, results in specific figures and I hope that the next generation of entrepreneurs will perceive this as a positive impact. The next question concerns Mr. Schuster as well.
So what has been the largest setback or what has been your biggest failure so far? Mr. Schuster said the following. Well, I can I want to focus on sustainability, but I can't do that always? And sometimes decisions are made by having short term goals in mind.
Sometimes I haven't driven home this message to the founders and this is a failure. And then another question put by Mr. Baumuller to Mr. Schuster as well. So what are your personal goals Mr.
Schuster in terms of your work here during your new term? Well, I hope that I can make use of existing experiences and I hope that I will be able to support initiatives. What we need is corporate energy, entrepreneurial energy to overcome challenges and I want to use this expertise. So that's what Mr. Schuster says.
The next question concerns again Mr. Schuster. So Michael Schuster, could you please comment on sustainability sustainable responsible business activities and social banking. So what is your take on this? Now Mr.
Schustem has replied to this by saying the following. And I again read out his answer. As investors, we finance young companies and that has a direct impact on society, employees and the general climate in Europe. We make sure that we invest in business models that are inclusive, ecologically sustainable and social. As investors, we can only influence things indirectly, but of course, we can make sure that these companies also appreciate and embrace these values.
Many of the companies that we bankroll democratize access to services and information. Social banking is a contribution to greater democracy and inclusion. As far as I see things, this is part and parcel of corporate social responsibility displayed by a bank. So this is what Mr. Schuster has to say, and this ties in quite nicely with the EASE Group's strategy as presented by Mr.
Spalt at the beginning of our AGM. The next question is put by Mr. Baummuller and it's put to me. So during the AGM of Austrian Post on the 04/15/2021, a statement was made that has quite a big impact on sustainable activities in Austria. So voluntary external audits, the company of course is carrying out these audits.
Security levels have been set a bit lower and sufficient security of reporting has been mentioned. So what about indicators? In the next step, another sufficient level of security is to be made available. What about the AGM of Telkom Austria dating back to the 05/14/2021? Similar configurations were also made there.
Now many may consider this a terminological finesse or subtlety, but it's a revolutionary change towards more reliable facts on sustainability. The commission proposal of the 04/21/2021 presages developments, legal developments in the coming years. So could you now briefly explain to us if ERT Group considers these developments? And could you please also give us first indicators on substantive and time related plans? Well, as you know, limited auditing security is the standard that we comply with.
And this is also what the Supervisory Board has specified. It wants to know for sure that those involved have non financial information and that they are in keeping with legal requirements and our auditors have said that this is the case. And I'm also reading this in your articles, of course. Now in the future, we may consider other developments. So sufficient level of security could well be considered.
But of course, the substance of non financial reporting, the content of non financial reporting, well, that needs to be standardized. Currently, this is not yet the case. And that's why it's quite difficult for auditors to determine the depth of auditing so that certain parts of non financial reporting could be delved into further. But we are working on this. There are many international initiatives.
So the form and the content of non financial reporting, while this is to be standardized based on the sectors And I hope that we will then also enhance the or reconsider the intensity of reporting. So the next question is directed to Mr. Spalz. So what are the services in connection with non financial reporting? What business partners have been involved and what fees have been paid out?
Could you also please tell us how much was paid for voluntary non financial reporting? As a group bank for drawing up the non financial report, well, did not use any consulting services and external audits of non financial reporting while regular market fees were paid. Let me also say that as Chairperson of the Supervisory Board, I've been involved in the selection of the auditor. So this was a joint job carried out by the management and Supervisory Boards and we made sure that the consultancy fee was adequate. All right.
The next questions put by Mr. Baummuller refer to myself. So the remuneration policy for management and supervisory boards. So compared to the 2020 version, there has been a change. Could you now please provide me with the following information?
What are the most important changes that have occurred? Well, let me say this. What we've reviewed is variable long term remuneration components for the Management Board by coming up with a long term remuneration plan. So a long term incentive plan that has already been mentioned has been introduced. This long term incentive plan has an impact on the amount of variables and makes it dependent on certain criteria.
And that's how remuneration is closely linked to the long term performance of ERCO and thus promotes the positive and sustainable development of the company in the interest of shareholders and the general public. And Section 70 of the SOAR Corporation Act makes mention of this. ERSE Group Bank AG will use shares performance share units PSUs and cash payments as variable compensation components starting in the performance year 2021. In this way, the variable compensation of management board members is strongly aligned with the shareholder perspective and has been designed for the long haul, if you like. So it's long term performance criteria that have been applied for variable remuneration.
Now the next question put by Mr. Baumuller has been directed to me. What consulting services were obtained for this, meaning the revised remuneration policy from which persons or entities and what fee was charged in each case. All right. As far as remuneration policy goes, while HCM International Switzerland was used for consulting services, here a standard market fee was charged.
It's somewhere it's hovering in the lower five digit figures. And the next question is put to me again. What are the specific ESG targets, meaning environmental social governance for board members, for the members of the Board of Management? What are these targets in detail that are currently applied on the basis or as the basis for remuneration? Now for 2021, sustainability has been included in the KPIs of the CEO as well as CRO and business board members.
For the CEO, related targets include defining and setting specific sustainability targets regarding the impact of the group's business activities in our markets, both socially and environmentally and in terms of the climate, then optimizing reporting and transparency
to implement
sustainability targets and third, providing necessary resources for related activities. Well, that's of course a very important issue and that's why the CEO deals with this. The CRO's objectives relate to designing and taking basic rollout steps related to the implementation of ESG risk policies. Those for the business boards relate or Board members relate to the development of adequate sustainability targets and corresponding risk return measurements for the corporate and retail businesses. And I now move on to the next question put by shareholder, Mr.
Baumuller, a question directed to Mr. Playa. In March, Estate Asset Management excluded lending from its ESG investment universe after the events of the so called mask affair surrounding hygiene Austria became public. I may ask you here for an account of the current status of your dialogue with the company. In a recent blog post, a reopening was announced.
This is the URL of the blog. But the reasons for this are not entirely clear or comprehensible. In this respect, I would also ask you to provide a more detailed explanation of what in concrete terms led to a discontinuation of the previous reason for exclusion and what makes you expect a substantial improvement in Lansing's obviously misguided relevant due diligence mechanisms. Mr. Playa, you have the floor.
Thank you. Mr. Baumuller, now in March 2021, we saw that asset asset management had actually excluded lending from the universe of ethically sustainable funds. Now investment and de investment decisions taken by asset management have been independent. Our bank has no influence.
We have no way of influencing this at all. The exclusion was primarily due to the allegations of fraud. Chinese products were sold under the title Made in Austria. Lenzing has since then taken clear cut steps in order to set the agenda right again. So shares have been shed and lending has said that it would reorganize investment management structures in order to avoid similar developments in the future.
So exclusion criteria would then fall by the wayside. And in the future, it should be possible again to include lending shares in the ethically relevant portfolio. Okay. Next question is put to Mr. Urszwald.
So what have been the three most important results of the fiscal year 2020 according to Board members allowing Erste Group to move closer to social banking during the last AGM? This was mentioned as the group's USP. Now have you been successful in this regard? Social Banking. Social Banking
in 2020 followed the goal to support financial inclusion of customers of Erstevanca and to help them stay alive. In 2020 more than 10,000 customers were supported. 15,000,000 were spent for founders, for people, the employees of poverty and for startups. And financial sustainability in social banking what does that mean? We want we don't want to make profits.
We want to achieve a black zero so to speak. We don't want to make profits on Social Banking and we hope that we can build and expand this business. In COVID-nineteen, bridging initiative was started in 2020 and €25,000,000 were placed for non profit purposes in the markets of the European Union as the bank supports social institutions and also takes over interest payments for newly taken out loans. So So we work together the bank and the foundation work together for a social purpose. Thank you.
Next question is directed to Mr. Spalt. A future related topic which will result in legal action is the topic protection of the Supply Chain Act as it is called. If we compare ourselves with Germany, in how far are the due diligence mechanism of Erste Bank sufficient to comply with the expected challenges or which adjustments seem necessary? Do you already discuss this topic in the company and which projects are initiated in this respect?
Thank you very much. I will take over Mr. Thammen. Compliance with all legal provisions and standards to protect human rights and the environment are of extreme importance in the purchasing process along the total supply chain. Some of the future applicable provisions are not so clear at the moment and implementation in the national legislation has also not taken place yet.
We are very well prepared with our processes and we already have due diligence mechanisms in place. Concrete adjustment adjustments are still necessary in our supply chain. Allow me to mention that we have an ethical and environmental code of conduct which applies to all suppliers of products and services. We have ethical purchasing management and we and our suppliers must prove that they are certified in ethical purchasing management and that they also have sustainable supply chains. Partners are checked against international sanction lists.
Compliance with social ecological and ethics standards in the supply chain is guaranteed by a poll of our partners in the areas quality, governance, risk, social sustainability, PEP and finance. And the supply chains are communicated transparently in all media. Now two questions to Mr. Schwalte. Two last questions by Mr.
Baumiller. Could you tell us how you comply with the data collection obligations in relation to disclosure ordinance and the taxonomy ordinance. Which questionnaires do you use? How do you receive data of the business partners of ERT Group? Which progress was made?
And is the current situation satisfactory with respect to the data situation, which incentives are connected with sustainability of business partners for example, loan conditions depending on the emissions of the business partners and how is this expected to develop. The new EU directive on sustainability related disclosure relates to our asset management business in which we had strong ESG risk integration and disclosure. In the past years, we developed an internal best in class ESG rating. And on the basis of a number of exclusion criteria, we are applying this system to detrimental ecological and social activities. Procured data with the help of data feeds and analysis services of several ESG rating agencies.
On 03/10/2021, we published risk management and remuneration guidelines of ERZT Group until the 07/01/2021. We plan a group wide implementation of an ESG scorecard for our credit and loan business, which is in the fast that limited to large company and real property customers. The scorecard doesn't reject transaction, but gives the Board a warning if the customer the transaction is exposed to environmental social and governance risks. In all cases where we receive warnings, we have a detailed ESG due diligence process. Of course, this cohort is also the basis for a comprehensive ESG data collection about our customers.
At the moment, we see limited availability of ESG data on the CE market, which will probably increase or improve due to the reporting obligations that are expected. Last question is by Mr. Baumgler. What are the most important the three most important tasks in relation to social banking, which Astegorp took for the current year. In 2021 in social banking, defined the following goals.
First, new loan volume for social banking customers is planned to be increased to €60,000,000 that is to say by 20%. In addition, social banking and sustainability we'll be working closely more closely together in order to develop activities together. Thirdly, social banking activities are to be also included in the regular business lines in order to scale financial inclusion of customers. In addition, we have specific individual initiatives and new equity instrument for social companies and social projects that will be launched, which supports organizational growth and mitigates the consequences of the COVID-nineteen crisis or the Zweide Spakase, which might be new to you that just started to give small scale loans to people for housing purposes people that otherwise would be excluded from the credit market. Thank you.
We already laid out some several answers and questions several questions and answers. There is still a limited number of questions remaining unanswered. Can only be answered if they are submitted within the next twenty minutes. All questions that will be submitted later cannot be answered. Furthermore, I state instructions to proxies is also possible by email, but only during the next twenty minutes motions or instructions being submitted after this point in time will not be taken into consideration.
And you will also see a countdown on the screen in the coming twenty minutes.
Okay.
Let's continue. With the questions of shareholder Peter Michel with voting card 1836. The first question is directed to me and is relating to results and remuneration of the Management Board and the remuneration of the Supervisory Board for the business years 2019 and 2020. After a middle year, the decrease in earnings was enormous and is minus 47%. RBI had only minus 34.5.
The salaries of the seven members of the management board fell from €15,137,000 to €12,906,000 that is minus 14.7%. At RBI, the remuneration of the six members of the Management Board were reduced by 30.4% to €10,853,000 Why is Stefan is Erste Bank hesitant in reducing the remuneration of the members of the Management Board? I do not understand how you arrive at these values. From the remuneration report of RBI we take that six members of the Management Board received a total remuneration of €10,813,000 The remuneration was reduced by each to 16% as compared to 2019. Jastigropankaji has seven members of the management board that received a total remuneration of €10,902,000 The remuneration of all members of the board as compared to 2019 was reduced by 19%.
And if we simply compare the old board to the new board about 14%. In Erstekopa for 2019 as well as 2020, the bonus for members of the management board was only given in Phantom shares and I already mentioned that in the motion. And due to the fact that the share price in 2020 was lower, The bonus proportion was reduced by more than 34%. Question of Mr. Peter Miche is the risk is to Mr.
Dafla the dividend. Erste pays a €0.50 dividend, euros $0.02 more than RBI. Can Erste Bank afford this dividend? And when will be when would the dividend for 2019 be paid? Mr.
Chairman, Mr. Peelke Miche, the short answer is yes. Without repeating what we heard in the contributions before is that we have a very strong capital position. And in spite of the corona crisis, the consolidated core Tier one ratio increased from 13.7% year end 2019 to 40.2% in 2020. We expect regulatory relief by ECB and that's the difference to the thresholds for limitations of distributions was increased to 4.3% by the 2020.
The planned dividend payment of $0.00 €05 per share is backed by capital positions in the parent company of approximately €3,000,000,000 Next question by Mr. Petermik is directed to me and is relating to the remuneration of the Supervisory Board. EASTER has 14 members of the Supervisory Board that received a remuneration of €1,600,000 10% more than the year before. RBI has 12 Supervisory Board members and the remuneration is approximately €1,000,000 There was no increase. Thus as they really need 14 members of the Supervisory Board that received 56% more remuneration than the members of the Supervisory Board of RBI.
Are the Supervisory Board is the Supervisory Board of ASD better? And if so why? Can't you take it from the result? The remuneration of Supervisory Board members is composed of the actual Supervisory Board remuneration and the meeting fees. The Supervisory Board remuneration was let down in the Annual General Meeting in May 2018 and was adapted year by year.
For example, for a simple member per year a Supervisory Board fee of €60,000 without meeting fees. The epitome you also asked us in the past AGM and this is why I would make everything clear. I would like to make everything clear. The remuneration of the Supervisory Board has not been increased since 2017. Since there is no compensation of inflation, we have a reduction in real terms.
Only the amount of meeting fees is dependent on the number of meetings that took place. And the meeting fee per meeting is €1,000 and this hasn't changed as compared to 2019. I don't know how you arrive at 14 Supervisory Board members. In 2020, the Supervisory Board of ESCO consisted of 12 representatives. Only in November 2020, a change took place as we have already heard in my report at the beginning of the AGM.
Mr. Griss and Mr. Rasinger left the Supervisory Board. Mr. Santner and Mr.
Seymour became new members of the Supervisory Board. And this is also the reason why you see 14 names of Supervisory Board members in the table in the annual report. But at each time we only have 12 representatives of capital. The question whether the Supervisory Board of RBI or Astegroup is better is not something I can say. Of course, I have an opinion, a personal opinion, but I'm not quite sure whether this is an objective opinion.
What I'm certain about is that the supervisory boards of both companies do a very good job. Next question of Mr. Peter Michi is directed to Mr. Dafler And relates to the costincome ratio, Erste has 59% as compared to 56.8% at RBI. What are the reasons for that?
And what are the goals of Erste for 2022 and 2023?
Mr. Dobler.
First of all, I'd like to point out that our medium term goal is a cost income ratio of 55% and we are confident that we will achieve this goal in spite of the COVID crisis. And we hope that we can and we are sure that we can achieve that goal in 2024. As far as 2021 is concerned, we are aiming at increasing revenues and reducing expenses and thus contributing to our operating results. And if we manage to do that the cost income ratio will be below 59% in 2021. But this is not the only profitability goal.
And of course, there is return on equity and other factors that also come in. Next question also directed to Mr. Dafla relates to the CET1 ratio. Markets difference 12.813.6%. I don't understand the 12.8% or 13.6%.
Maybe you are mentioning figures of RBI. We have neither 12.8% nor 13.6% in relation to the CET1 ratio neither in 2019 nor in 2020. At the end of 2019, we have reached 13.7% CET1 ratio and at year end 2020 the CET1 ratio was 14.2 Maybe the figures are mixed our figures are mixed with RBIs figures. Next question also relates to Mr. Dirkle.
It relates to the difference to share price and book value. The share price fell in three years from 40% to 29.5%. This is 26%. RBI from twenty nine percent to 18.25%. This is 7%.
Okay. Let me react to the first part of question the because the second part of the question is a statement another question. As you can take from the annual report in the first pages, the book value at the 2020 was €34 per share.
And increased
from €32.9 in 2019 to €40 Today the share price is approximately 34.3 So we are currently hitting our target for the year end. Next question also directed to Mr. Dafle. Which part of the results is due to corona? Thank you very much.
This is a very important question, because this question is very important as far as the interpretation of our results are concerned. And the summary of Mr. Spalte, you already heard about the main drivers of the 2020 result risk costs, which we booked early in 2020 and risk costs were the main driver for the result. So risk costs were the largest driver in the decrease of operating profit. And the COVID pandemic had an influence on revenues as well as costs.
The largest part of costs related to traveling activities, but also further training and education of our employees and also marketing where we saved money because activities were limited as far as the revenue side is concerned. In March, April, the trade and fair value result was heavily hit. In the rest of the year 2020, we caught up a substantial part of the slump in March and April, but not 100%. We think that 5% to 6% of our revenues the decrease of our revenues is caused by corona in the amount of 5% to 6%. Of course, we cannot clearly identify what was caused by corona and what was by the COVID virus and what was caused by other environmental factors.
Next question to Mr. Spind. What about short time labor in 2020? No. And we are not planning to introduce it in 2021.
Next question to Ms. Haraldo Kavec. The NPL ratio is 4.9%. In Astepanc, RBI has 1.9%. Why?
What is planned to reduce this factor? Are you using different measuring sticks? The NPL ratio of Astegroup at year end 2020 was 2.7%. 4.9% Mr. Peter Michel are taken from the result 2016.
As Mr. Spait already said in his statement today, 2.7% only slightly above the excellence 2.5% in 2019. Looking at the first quarter twenty twenty one, the NPL ratio is slightly below 2020 at 2.6%. What was the reason why? We had an increase of an NPL ratio between 2019 and 2020.
In the fourth quarter, we carried out an unlikely to paycheck and 500,000,000 in terms of NPL were the result of this unlikely to paychecks. It's not hard defaults that is to say insolvencies. It's just a risk estimate of the future solvency of our customers against the background of the COVID pandemic. So only those customers where it is highly unlikely that they can pay their debt. In the course of the year, we expect that insolvencies will rise.
At the moment, we have a relatively low level. And after the expiry of all eight measures, we expect an increase in the NPL ratio of three to 4%, which is markedly below the pre crisis level of 02/2008, 5.6%. And the years following the year 02/2008, we had an NPL ratio of 9% to 10%. Thank you. Next question directed to Mr.
Spal. What are the gentlemen that received such high salaries plan to make Astegroup successful again. Dear Mr. Peter Michel, I think Astegroup is successful. It was so before the crisis and it will be after the crisis and it was during the crisis.
If you read equity research reports about Erste Group and if you look at our results, you will see that we have a very strong growth potential, which is based upon our business model that we have a good capital structure. Also in the international comparison, we have the right business model. We are doing business in the right regions. We already established a strategy in 2019 and published this on the capital market a strategy that is a growth strategy. We want to transform the capital market.
We want to be efficient. This is what we do. The net result 2020 reflects our estimates of the pandemic on the liquidity of our customer of on our customers. It was a difficult situation because we had no certainty. So please watch us how we master the crisis also in the long run, but we have a very robust business model.
We have good growth opportunities and we can organically grow and this is a fact. Thank you.
Thank you. The next question is to Mr. Schauffler and is about George. George is working quite well. And can I assume that there will be no fees attached to it?
Because as far as I know, fees in saving banks right now are high enough. Yes, George is working quite well. And we do not expect any change for George. There will be plug ins that might be according to your own needs be added or not and then being paid for us. You go.
Then Mr. Peter Michel has a question on the distribution of the remuneration of $1,000,006.03 €5,000,000 on the individual members. The remuneration was about €900,327.87 plus €277,000 for the year 2020. That in total is $1,000,177,327.87 euros The total amount and the distribution for each Supervisory Board member is included in the Remuneration Report 2020. The fee travel fees and the daily fees are €16,000 And if you want to have the figures for one or two members, for instance, for myself, it's 2 and 14,000, Mr.
Homan, $130,000 Maximilian Hardik $140,000 and all the other figures can be found in the remuneration report. So in total $1,177,327.08 7 question will not be answered anymore. We will answer of course all the questions we receive until now. The next question is about the Phantom shares and it's the next next question of Mr. Peter Michel.
It's about the Phantom, so something that disappears or is part of it in the books world. Phantom share is linked to the fact that its price is linked to the share price, but Phantom shares are not traded in any stock exchange, but a calculation matter so as to be able to translate the development of an action share price over a full financial year. So it's a calculation figure. So that were the questions of Mr. Peter Michel.
Now it is Berthold Berger with 1979. The first question is how many people attended the AGM last year, how many from Austria, how many are from abroad, how many this year, how many from Austria and how many from abroad. In the last year A1 had fourteen seventy six people logged in from Austria twelve ninety six and the rest from abroad. From other providers, were 147 people, 125 from Austria, the rest from abroad. Today, and this figures from eleven a.
M, three seventy eight people logged in, three fifty two from Austria.
Now
am on the next question to Mr. Berger again to myself. What did the technological setup camera team and Internet connection costs. In total, it did cost €23,238 for the AGM. For internal for the Internet connection, we used our internal Internet connection, so no extra costs for that.
The next two questions addressed to Mr. Spal, how many employees of Erste Bank Group were in working from home and how many today? No. During the first lockdown, we actually reduced presence to bare minimum. We had a 90% working from home rate.
And then this rate actually went to 80%, 85%. And this is still the value applicable. We hope that after our vaccination campaign, we will at least be at 50% in our central offices and headquarters. Of course, we need to comply with regulations of social distancing and two meter distance, so it will not improve further for the timing. Next question, how many people for health reasons went to early retirement and what was their average age?
In 2020, we had only one pension early retirement for health reasons. We had 10 on a temporary basis and they came back Eight of them, sorry, came back. Next question, I think, has been asked what is the share price. I think I can do that myself. On the 03/31/2021, the share price stands at €34.6 Yes, this would be contradictory.
This is absolutely correct. That is the calculation value, but this value is not published and we always use the end of the year value share value. And you always can
at
any point use the value per diem per end of a quarter. Then again questions to Mr. Farwilter is the corona what
is
the corona situation for employees in Austria and abroad and which country is most affected? So 05/11/2021, in the whole Aster group, had three thousand nine hundred and seventeen positive COVID cases, out of which four hundred Austria. The country most affected is Czech Republic with twelve ninety cases. We have vaccination going on in the Astern group and the number of infected persons is decreasing. Next question, what do you pay for social media and online marketing?
In total, we paid EUR 2,900,000.0 for online marketing and social media. And online, in the total of Astro Group, we paid in twenty twenty EUR fifteen point seven million for. And the first figure was social media. Next question, Mr. Duhfleur, how much do you pay to the ECB for negative interest rate?
This is a question that you cannot clearly say for the EBC placements. And I can only say that we have €35,000,000,000 placements at ECB and we have minus 0.5%. But also please note that on the other hand, we have to add the TLTRO facility And therefore, we cannot easily answer that question and it doesn't make any sense. So next question to Mr. Spalt.
What are you paying for sports sponsoring and what discipline are you supporting most? The whole of Oster Group spend €7,300,000 of sports on sports sponsoring. We have regional differences. It's from youth to running football and e sports. And of course, it's the as the bank opened tennis tournament.
Next, Mr. Ruhler, what is the technical support the camera team and the Internet connection costing for this AGM? And the costs are €11,950 plus VAT. And the Internet connection is, again, internal resources, doesn't cost any extra money. Then a question to Mr.
Bleier. As of which deposit amount customers do need to pay negative interest rate? Well, actually, we have a standard value of €100,000 And for institutional investors, we have a fee, so EUR100000 as an average figure. Thank you. The next two questions to Mr.
Omani. What do you pay for SAP?
Sorry.
No, no,
no, sorry. What do you spend for security software and how many people are working for it and have you been hacked?
Security is one of our top priorities. And to reflect this, we have dedicated security staff in all of our entities. They work in the areas of both security management and security operations, ensuring and focusing on the security of both the client information and our systems and infrastructure. Depending on the size of the entity, this dictates the number of people we have working there. But to give you an example, in our main Austrian entities, we have approximately 60 people dedicated to the topic of IT security.
On the investment front, approximately 5% of the IT budget is dedicated and spent on security. On security incidents and hacking, I think you will understand that we do not give any statements on any specific incidents on this topic. Thank you.
Thank you. And now the other question, what do we spend was given on SAP? How much do we spend on SAP? What do you spend on SAP? I
would ask
for the understanding that we don't give specific numbers for individual vendors and partners that we work with. We have SAP as group solutions across our entities in both the finance and the HR area. And we spend not just directly to SAP, but on the actual running of these systems and further development of the systems approximately €15,000,000 per annum.
Thank you, David. Mr. Spout, the next question to you. How many employees during the years 2019 and '20 went into retirement at what age? Well, in 2019 in the group, we had in the holding 42 and in the group 66 in 2020 in the holding 23 and in the group 88.
Average age was 63.4 for men and 60 for women. Thank you very much. Next question, how many electrical or BAF vehicles did you buy and how many did you lease in 2020? We had 47 electric vehicles being bought. In total, we had 72, 33 in Austrian and we don't have a percentage for leasing vehicles
for that.
Next question to Mr. Doerfle. Doerfle again. In 2020, we had 26 hybrid vehicles, 17 in Austria, in 2031 new hybrid vehicles. But this was not the question, but the answer, yes, I'm sorry.
I'm confused because the screen is moving so much. So the question was how many hybrid cars or vehicles did you possess and how many did you buy and how many did you lease? So as a group, we had 26, 17 in Austria including savings banks and 11 were newly bought and we do not have an extra rate for leasing. Mr. Doerfleet can add something.
No, no. Gerhard, this was totally correct. Next question, it's a question to Mr. Spalt. What is the amount that you spend for training in 2019 and 2022 for your employees?
Well, we spent €13,500,000 for trainings within and throughout the Aster Group. Every employee has to follow a certain amount of training because this is done on a yearly basis and some of them have certificates or recertification to undergo. And the next question to Mr. Dufry, you now may answer. Do you have any branches in tax havens like Delaware and others?
And what you do there. Well, first of all, I'd like to say that establishing the fact that these branches for many years and at least for decades exist. We always speak about the tax havens as defined by OECD. We have in Delaware 100% daughter which is commercial papers and refinancing the branch in New York. We then also have rental of airplane and activities associated to it.
We then also have the Aster Reinsurance S. A. In Luxembourg and we have private equity funds which usually are in Luxembourg or in The Netherlands. Then a question to Mr. Schauffla.
How many branches have been closed in 2019 and 2020 in Austria and abroad? Well, thank you very much. The total number of branches closed in 2019 is seventeen ninety seven and sixteen sixty five in minus 132 in the whole group. And now going to Astebank Austria. We closed five branch subsidiaries in 2024.
So that's a reduction of 99 to 99. So next question is addressed to Mr. Spauld. What was the employees turnover in 2019 and 2020 in Austria, Czech Republic, Romania, Slovakia and Croatia? Well, let me start with 2019.
On the group level 12.1% Austria 7.5% Czech Republic 16.13% Romania 19.6 Slovakia 11.5% and Croatia 7.7%. Turnover in 2020, group level 10.2% Austria 7.9% Czech Republic 10.7% Romanian 13.7% Slovenia 14.8% and Croatia 9.5%. Thank you. Next question also to Mr. Spalding.
How many people do work in the back office today as of today? It says twice back office. I don't know. So thank you to the back office for answering this question. And thank you very much for the whole for the work performed during the year.
So basically, I think that how many people work in the back office is the question. Well, you and thank you also for your good wish as well. The advantage of this virtual AGM is also that we do not have to all sit in the same room and therefore can protect our employees because they can work from their workplace and be reached in there if they are needed. I can give you the figure that at about 50 employees are ready to support us from a back office perspective. Thank you.
Now we have a question to Mr. Doerfle. What are the amounts spent on insurance for the car fleet 2019 and 2020 and what insurance is it. We insure our vehicle fleet at Wiener Stetyshe. And the premium total amount of premiums for the holding and as the group was EUR265000 €65,000 and for 2020, euros 320,000.
Ms. Havilah Parekh, next question goes to you. What are the NFL 2019 and 2020? In 2019, we had CHF $675,000,000 in 2020. It was CHF $387,000,000 that had to be written off.
And something that I'd like to underline is that those NFL credits were in 2020, million in 2019, it was EUR160 million. Next question goes to Mr. Spaldinger. It's a correction to the question, how many people are working in the back office and how many external experts like lawyers and experts. Well, that's what I say except the people attending the meeting here and the AGM.
Here in the room. We have Mr. Richard Wolff, our lawyer and all others back office of the Astergroup. Then Ms. Havela Prabek, next question goes to you.
How much insurance premiums did you pay for the branches in 2019, 2020? And what insurance company are you insured with? We are insured with the up risk insurance program of the first of the ASTER Group. And this includes not only buildings and fire hazards, but any type of operational risks coming out of bank business. So that is cybersecurity and everything.
And the premium for the after bank is €9,600,000 These are the figures for 2021, but the amount remains basically the same. And it's VIG, VN Insurance Group and it is reinsured under after reinsurance located in Luxembourg. And the last question of Mr. Berger, how many subsidies did you get from Austria and the European Union in 2020? Well, I guess that when you talk about subsidies, we can say as the group, we did not get any, be it and we said already it's not about the part time working schemes.
On the contrary, we tried to support our customers and best of our capacities so as to be able to support them getting any subsidies available. Okay. Thank you very much. And these were the questions from Mr. Berger.
Now Mr. Lust with the card number 1259. And according to and on the election of Michael Schust in the supervisory board, why a man with no experience? Why does he introduce himself in English? And why no alternative?
Well, I can say that we have proposed Mr. Schuster as a candidate for the Supervisory Board because we think that he is complementing the Supervisory Board in an excellent manner. Even though he is only 24 years of age, is not a greenhorn. He is the founder of the biggest venture capital funds in Austria. And with his know how in start ups, digitalization and innovation brings new perspectives and approaches to the work of the Supervisory Board and invests his own money in start ups and therefore also has the view of the investor and someone whom we believe we can benefit from.
We are convinced of our candidate and would not suggest him otherwise. For these reasons also and not necessarily without going into litigation in panels to have any alternatives, we left it to Mr. Schuster which language he would like to introduce himself. But due to the fact that the Aster Group also has a very large number of international shareholders, specifically concerned with topics that Mr. Schuster is working on, He considered it appropriate and justifiable that he chose English, and I understand that as well.
And his English knowledge is absolute must, being member of the Supervisory Board of Oster Group. But of course, the video has also been translated into German. And then we have two questions of Mr. Christian Bohm with the voting slip one out of nine seventy seven. And it is to Mr.
Doerfle. Please give the exact amount per calendar day. Per share being brought. Can we link it to the other question maybe? And we have you mentioned a short sale.
Can you please say on the how many short sales you had per day? What was the lowest and highest price? Did you whom did you say sell them to? And how much did you get per day? And then comes the question that we heard previously.
Well, you actually refer to my report that I mentioned. And I'd like to underline that the short sales are linked to the financial year 2020 and 2021 until the 04/30/2021. When we speak about short sales not sometimes but always. We have market mating trades, hedge, business or derivatives. And they are in the market making.
Therefore, it's difficult to give you a date and it is not possible to isolate a single business. And it's, if I recall correctly, thousand two hundred and the one that we had in the report. What is important is that these short positions are always on the lowest and that on the lowest value 2020. And the end you have to add that we always leverage and cover it with other transactions. And normally it's 20 to 100 basis points per transaction that we get as commission.
So thank you very much. There are no pending questions anymore. And therefore, I hereby close the general discussion and debate. And as I said, no further questions are now answered. I now allocate and give the floor to the four special proxies and ask them that there are no further requests that they received.
So I give the floor to Nicolas Adensar. Thank you, Chairman. I did not receive any further request and resolution. Then the floor goes to Michael Knapp. Thank you very much, Chairman.
I did not receive any resolution, but Stellar Investment GmbH I received an order and I am citing from that instruction. Stellar Investment in Berhad voting slip eighteen eighty five represented by Hupper Heinrich Staller to Michael Knapp I, Mr. Schaller am to accept the excuse of the chairperson of having lost the red thread, but I'd like to say for the record and I'd like to have it in the minute to the whole of the agenda. The reason because beforehand I gave 19 and submitted 19 questions that have been presented in a chaotic way and told and all ways have been interrupted. It was logically numbered.
It was stringent and clearly argumentative. And therefore, some of the points were left unanswered. I do not understand how this could happen to a professional back office. After one year of new digitalization in due to corona, the crew of Astebank should be able to work in a digital world. For that we as investors, we have to ask ourselves if there is not a certain intent so that with virtual events in the future, the right of investors to ask questions and get answers might be reduced so that the AGM can be reduced to decisions taken by shareholders.
And this is a development that I have to clearly mention as a risk for the future. Now thank you very much. Now the vote goes to Ewald Oberheimer. I do not, as the Chairman, have any new requests. Christoph Howard is the next.
Minida, I did not receive any request. Thank you very much. The Notary Mr. Briggs will record this in the minutes.
All right. Note that no further motions have been received and we now proceed with votes on agenda items two to 11. I agree that the votes will be taken in accordance with the well established subtraction procedure. This procedure with no votes and abstentions are counted and subtracted from the total number of votes present. And this then results from the yes votes.
For the voting, the four special proxies use the so called instruction cards or voting cards they received before the opening of the AGM. By entering instruction or voting cards in our IT system, the number of shares is recorded. In the case of yes votes, instruction or voting cards don't need to be held up, because the yes votes are determined using the subtraction method. Now for better recording and documentation, instructing our voting cards will be read out aloud by Notre public Mr. Briggs.
The voting procedure will be supervised by Notre public Mr. Briggs and computed by Daniel Bauer. Any voting bans will be automatically recorded for the votes and taken into account in the voting results. Let's now vote on item two of the agenda resolution on the appropriation of net income for 2020. I now put to the vote the proposed resolution I read out at the beginning and made available online as a motion that the Annual General Meeting resolve the following: the appropriation of the net retained profits of 6 and €44,700,000 reported in the annual financial statement.
The company as of 12/31/2020 shall be made as follows: a dividend amounted to €0.50 per share entitled to dividend shall be distributed I. E. A maximum total of $214,000,000 thousand. The company is not entitled to any dividends from treasury shares or own shares. The remaining net profit will be carried forward to new account.
The dividend payment date and that's deviation from Item 20 three-four of the Articles Physician, which provides for payment of the dividend ten days after the AGM is 05/27/2021. And let's now put this to a vote. The shareholders or the proxy holders that are against this motion, could you please now raise your voting cards? Doctor. Knap's voting cards and Mr.
Obahama, those were the votes against. Is there any abstention? Are there any abstentions? Oberhammer, Nawa, those were the abstentions. All right.
This is the voting results. Yes votes 314,416,478 no votes votes against 293,145. So that's the number of shares cast and the total number of shares for which votes have been cast 314,709 and the share of the shared capital represented by those votes 73.22 abstentions 6,246. I state that the motion has been carried with the requisite majority And this has therefore been decided by the AGM, the proposed operation of net income. Eighteen fifty eight, objection raised under eighteen fifty eight, that will be put in the minutes.
And this applies to all the items on the agenda, right? Yes. But formally, I have to raise my hand every time, Except my premature passing, this would not allow me to raise my hand. All right. Let's now vote on the third item, the agenda resolution on granting discharge to the members of the management board for the 2020 fiscal year.
I refer to Section 125 of the Stock Coversion Act according to Brisbane voting on the branding discharge to the Management Board. Those shareholders who were members of the Management Board in the 2020 fiscal year may not exercise their voting rights on their discharging. I now put to the vote the proposed resolution I read out at the beginning and made available online as a motion that the AGM resolve to discharge the members of the management board who were in office in the 2020 fiscal year for this period. Now who is opposed to this motion? Could you please raise your voting cards Knapp Knapp and Oppenheimer.
On item three, well this is the result. Guest votes €312,985,000 Neu votes 44,168. All right. The number of shares for which valid votes have been cast or the overall number of valid votes cast $313,029,007 and 35. The share of the share capital represented by those who owe 72.83%, abstentions 1,685,122.
I declare that this motion was adopted by the required majority and that the AGM has therefore resolved in accordance with the motion to grant discharge to the members of the management board for the 2020 fiscal year. And Mr. Knapp, of course, will raise an objection, yes, to be mentioned in the minutes voting cards eighteen fifty eight and we'll report this in a Let's now vote on the fourth item of the general resolution on granting discharge to the members of the Supervisory Board for the 2020 financial year. I refer to Article 125 of the Stock Cooperation Act according to this when voting on the granting discharge to the Supervisory Board. Those shareholders who were members of the Supervisory Board in the twenty twenty fiscal year may not exercise their voting rights on the discharge and output to the vote the proposal for a resolution I read at the beginning of the AGM and also made a bill online, namely that the AGM resolved to grant discharge to the members of the Supervisory Board who were in office in the twenty twenty financial year for this Now who is against this motion or resolution?
Would you please raise your hands or voting cards, OBAMA and KNAU? Thank you. Shareholders, representatives that wish to abstain, could you please raise your voting cards, OBAMA and KNAU? I announced the following results. We have closed 294008757 no votes $18,844.11 Number of shares for which votes have been cast or overall number of the valid votes cast 312,849,168.
And the share of the shared capital represented by these votes 72.79% abstentions 1,866,173. I declare that this motion was adopted by the requisite majority and that the AGM has therefore resolved to discharge the members of the Supervisory Board for the fiscal year 2020 in accordance with the motion. Mr. Knapp, thanks for taking the floor. I raise an objection on behalf of Stade Investment GNPH.
And that's the voting slip eighteen fifty eight. Thank you. Okay. Now on the fifth item of the agenda, election of an additional auditor for the audit of the annual financial statement and management report as well as the consolidated financial statements and group management report for the fiscal year 2020 And I put to the vote the proposed resolution, a motion read out at the beginning and made available on the website at the motion that the AGM elect PWC Biotrchowen's group from GNBH's auditors for the annual financial statements and management report, the consolidated financial statement and group management report of the company for the 2020 fiscal year in addition to the Spakhaven Proofum Spobant, the Savings Bank Audit Association's statutory auditors. Now if you are against this motion, please now show this by raising your voting cards.
Knapp Ardenfarme und and Oom, Oberhamer. Now is there anyone who wishes to abstain from the vote? Please raise your voting cards. Knapp Naua, Ubahama. And I announce the following voting results.
Votes in favor: 330,667,890 votes against 1,040,841. Number of shares for which valid votes have been cast or the overall number of valid votes casts three hundred and forty million seven and eighty and eight thousand seven hundred and thirty one. And the portion of the share capital represented by this vote is 73.22%, 7,138 abstentions. This motion I declare this motion was adopted by the required majority and that the AGM has therefore elected PwC, PwC, GmbH's additional auditors for the audit of the annual financial statement and management report as well as consolidated financial statement and group management report for fiscal year 2022 in accordance with the motion Mr. Knapp.
Again, I raise an objection on behalf of Stade Investment GmbH, shareholder number 1858. Thank you. Okay. Let's now vote on the sixth item of the agenda. Elections to the Supervisory Board and output to the vote of the proposed resolution I read out at the beginning and made available online as a motion that the AGM should elect Michael Schuster as a member of the Supervisory Board with effect from the end of the AGM until the end of the Annual General Meeting, which should result on the formal approval of the Supervisory Board for the fiscal year 2023 with effect from the end of the Annual General Meeting.
Obama and Thammakanab, they were against. Now let's see who abstains, Obamnau Knapp. And this now is the voting result on Item six of the agenda votes in favor 314,646,730 votes against 50,746 number of shares for which ballot votes have been cast or the overall number of valid votes cast 340,697,476. Portion of the share capital represented by these votes 73.22% abstentions 18,393. Mr.
Knapp, please. On this item two, I would like to raise an objection on behalf of Stalin Investment GmbH voting cards 1858. Thank you. And we will record this in a minute, of course. I declare that this motion was adopted by the required majority and that the AGM has therefore elected Micha Chusta to the Supervisory Board in accordance with the motion.
Finally, would like to state that Micha Chusta had already declared before the election that he would accept the mandate if elected. Let's now vote on the seventh item of the agenda, resolution on the remuneration policy with regards to the principles for the remuneration of management and supervisory board members. And I put to the vote the proposed resolution I just read, a motion that's already been put online. I had motion that the AGM adopt the remuneration policy with regards to the principles for the remuneration of management and supervisory workmans as made available on the website. All right.
Who is against this motion? Please raise your voting cards. The proxies that wish to obtain. And the voting result votes in favor three zero eight million five hundred and twenty nine votes against 2,854,419 Number of shares for which valid votes have been cast or the overall number of valid votes cast 311,356,618. A portion of the share count is represented by the votes 72.44%, extension 335-8239.
So I declare this motion was adopted by the required majority and that the AGM has therefore adopted the remuneration policy for the members of the management advisory boards in accordance with this motion, Mr. Knapp. Thanks for giving me the floor. On this item two, I would like to raise an objection on behalf of Stade Investment GnbH, voting card number 1858. Thank you.
Yes, we have recorded this. Let's now vote on the eighth item of the agenda, resolution on the remuneration report for the remuneration of management and supervisory board members for the 2020 financial year. And I put to the vote, I just read, resolution has also been made available online. This motion reads as follows: We move that the Annual General Meeting adopt the Remuneration Report on the Remuneration of Management and Supervisory Board members for the 2020 financial year as made available online. Now if you are against this, please show this by raising your voting cards.
Who wishes to abstain from the vote? Please raise your voting cards. And this is the voting results on Item eight. Votes in favor 283,368,685 votes against 27,770,060 Number of shares for which valid votes have been cast or the overall number of valid votes cast 311,138,754. The portion of the share capital represented by these votes 72.39% At the section 3,577,115, I declare that this motion was adopted with the requisite majority and that the AGM has therefore adopted the remuneration report for the remuneration of management and supervisor board members for the twenty twenty financial years in accordance with the motion of Mr.
Knappen. On this item two, I'd like to raise an objection on behalf of the shareholder, Stade and Bessemann GmbH with voting cards eighteen fifty eight. Yes. To acquire Treasury shares for the purpose of securities trading. And have put to the vote the proposed resolution I read out at the beginning and made available on the website as a motion that the AGM resolve to authorize the Management Board to purchase Treasury shares for the purpose of Please raise your voting cards.
Knapp, Obahama, Nawa, Agenzaermann. I now announce the result of the vote on certain item nine of the agenda that votes in favor 310,528,181 votes against 3,922,529. Number of shares for which ballot votes have been cast or overall number of the ballot
of of
of Directors I established that this motion was adopted with the required majority and that the AGM has therefore resolved in accordance with the motion to authorize management board to acquire treasury shares for the purpose of securities trading. Yes. Let me pitch in here. On this item too, I'd like to raise an objection on behalf of STAHL Investment GmbH with voting card number 1858. Thank you.
Okay. Thank you. Let's now vote on the tenth item of the general resolution on the authorization of the management board to acquire treasury shares for the purpose of giving shares free of charge or at a reduced price to after the meter by the tithing of the large shipment to its beneficiaries, employees, executives and members of the management board to the AltaVita Bank AG or any of its affiliated companies or to any other company under Section 4D paragraphs four subparagraph one of the Austrian Income Tax Act, an update to the vote, the proposed resolution I read at the beginning and made available on the website as a motion that the AGM resolve to authorize the management board to acquire treasury shares for the purpose of giving shares free of charge or at a reduced price to Elfsimi de Beitavatitideg or Lodgliebum to its beneficiaries to employ its executives and members of the management board of Elfsimi Group Banguages or one of its affiliated companies or to any other company under Section 4D or paragraph five of the Australian Income Tax Act. Who's against this motion? Please raise your vote on cards.
Who wishes to abstain from the voting? Obahama Nawa Knapp. I now announce the results of the vote on item 10 votes in favor 309,264,778 votes against 5,187,500. Thirdly, number of shares for which valid votes have been capped. Our overall number of valid votes casts 340,452,308.
Portion of the share capita represented by this vote is 73.16%, abstentions 263,561. I declare that this motion has been adopted with the required majority and that the AGM has therefore resolved in accordance with the motion to authorize the management board to acquire treasury shares for the purpose of giving shares for its charge for a reduced price to LTI Beta Vitale and Veraschigtum to its beneficiaries to employees, the executives and members of the management board of LTI Group BAN AG or one of its affiliated companies or to any other company under Section 4D5 Subfigure one of the Austrian Income Tax Act. Mr. Knab, thank you for giving me the floor, Chair. On Item 10, I would like to raise this objection on behalf of shareholder Stalet Investment GmbH based on voting card number 1858.
Thank you. And we'll record this in a minute. And let's now vote on the eleventh item of the agenda, Resolution on the authorization of the Management Board to acquire Treasury shares without earmarking an effort to the vote. He proposed a resolution I read out at beginning and which has been made approval online as a motion of the AGM to approve the authorization of the Board of Management to acquire Treasury shares without its specific purpose and including trading in treasury shares as the purpose of the acquisition as well as the authorization of the Board of Management to sell repurchased shares or shares bought back by means other than at the Stock Exchange or by means of a public offer together with the authorization of the Management Board with the approval of the Supervisory Board to exclude shareholders' general rights to offer and general purchase options and authorization of the Management Board with the approval of the Supervisory Board to cancel or withdraw treasury shares. Okay.
I now ask you who is against this motion. Please raise your voting cards. Knapp, Obahama. Who wishes to abstain? I declare that this motion was adopted.
But before that, let me briefly announce the voting results. Votes in favor of 309,287,218. Bodes against 5,009,602. Number of shares over which valid votes have been cast or the overall number of vessel votes cast, three fourteen million two hundred and ninety six thousand eight hundred and twenty. A portion of the share count represented was 73.13%, the extension is 493,049.
So I now declare that this motion was stopped by the requisite majority and that the AGM therefore resolved in accordance with the motion to authorize Management Board to repurchase the company's own shares or treasury shares for no specific purpose and excluding trading in the company's own shares as the purpose of the repurchase as well as to authorize Management Board to sell the repurchase shares by means other than the Stock Exchange over means of a public offer together with the authorization of the Management Board with the approval of the Supervisory Board to exclude the general right of shareholders to offer their shares in the general purchase option and the authorization of the management board with the approval of the Supervisory Board to withdraw TREASURE shares. Mr. Knapp, well, thank you for giving me the floor. On Item 11 of the agenda, I wish to raise an objection on behalf of Steinbecken's GmbH and this is based on voting card numbers 1858. Thank you.
And this will be recorded in minutes accordingly. All right. Ladies and gentlemen, this concludes the agenda of today's AGM. The voting results will be published on the company's website. I'd like to thank you, ladies and gentlemen, dear shareholders for following today's virtual AGM by the Internet and I'll close the twenty eighth Annual General Meeting.
Goodbye. I hope you stay healthy. And if you are in Austria, you know that today everything is opened up. So enjoy this day, whether you go to the opera or the concert or a restaurant. Wish you all the best.
Stay healthy, and we'll see each other at the natural AGM. Thank you. Goodbye.