[PPT] - Erste Group Money Study An annual survey of saving, investment and PowerPoint Presentation

SLIDE 1

Erste Group Money Study

An annual survey of saving, investment and spending practices across the CEE region

SLIDE 2

Saving remains important to people across CEE

3 1 4 5 40 31 20 17 6 1 1 6 7 2 18 22 6 6 1 8 5 9 4 1 6 4 4 3 4 8 37 36

N O T I M P O R T A N T O F M I N O R I M P O R T A N C E O N L Y S O M E W H A T I M P O R T A N T R A T H E R I M P O R T A N T V E R Y I M P O R T A N T

Putting money aside is “very”

r “rather” important for large

majorities across the region

27 33 50 17 33 40 40

AT RS RO SK SK RO RS AT CZ HR HR CZ HU HU

SLIDE 3

Mixed picture in development of average monthly saving amount

Savers in Hungary and Austria are putting signifjcantly more aside each month Declines in average monthly saving amount in both Croatia and Serbia

Current monthly average savings amount in Euro:

201

7.5%

216 AUSTRIA

1.3 %

76 77 CZECH REPUBLIC

3.2 %

94 97 SLOVAK REPUBLIC

10.6 %

47 52 HUNGARY

0%

46 46 ROMANIA

5 %

60 57 CROATIA

2.9 %

35 34 SERBIA

200 € 100 € 150 € 50 € 0 €

2015 2016

SLIDE 4

Widespread dissatisfaction in CEE with ability to save

Majorities in four countries say they don’t have enough money available to put anything aside Savers in Southeastern Europe are particularly dissatisfjed with their current monthly savings amount

14 6 7 9 20 7 6 6 1 2 3 1 6 1 4 1 6 20 15 3 2 1 6 2 6 34 28 3 2 28 2 3 18 1 9 21 14 2 4 32 2 1 2 5 3 1 27 35 2 2

R A T H E R S A T I S F I E D

AT RO SK RS CZ HR HU RS SK RO AT HR CZ HU

AGREE DISAGREE

CZ HU HR SK RO RS 39 39 21 21 59 62 65 55 35 33 24 26

V E R Y S A T I S F I E D S O S O N O T A T A L L S A T I S F I E D L E S S S A T I S F I E D

MONEY STUDY 2016 | #EGMS16

SLIDE 5 S E R B I A C R O A T I A R O M A N I A SAVED LESS % SAVED ABOUT THE SAME SAVED MORE NO ANSWER 1 3 1 3 1 4 3 2 2 1 4 1 5 5 6 6 4 2 3

Development of savings

ver past 2 or 3 years

People in CEE are generally not able to save more now than a few years ago

Across CEE, the share of people saving less is higher than that saving more Saving ability largely mirrors stagnant development in people’s overall financial situation

37 18 1 1 1 1 33 23 40 57 44 51 40 29 26 25 13 11

REMAINED THE SAME DETERIORATED NO ANSWER IMPROVED

CZ HU HR SK RO RS 44 26 29 50

Would you say that your general fjnancial situation in the past 2 or 3 years has …

SLIDE 6

Costs of living increased while income remained the same

Their reasons for saving less:

Total household income now lower

People who have saved less in the past 2 or 3 years

Lower income due to retirement Started a family, had a child Higher expenses for family, family members

16 15 10 9

%

20 20 40 40

17 2 11 13 7 9 9 9 4 16 5 2 7 11 19 10 15 21 22 31 % 30% 31% 41% 21% 32% 14 44 27 44 60

20 20 20 20 40 40 40 40

What has driven lower savings level for those saving less?

Higher cost of living, family-related expenses are key drivers

CZECHIA HUNGARY CROATIA SLOVAKIA ROMANIA SERBIA

1

SLIDE 7

85 92 93 89 81 AT CZ HR HU SK RS RO 67 44 AT CZ HR HU SK RS RO 26 66 65 AT CZ HR HU SK RS RO 62 68 68 45 65 25 AT CZ HR HU SK RS RO 27 22 29 AT CZ HR HU SK RS RO

Saving for a rainy day remains the prime motivation for putting money aside

Financial back up, for emergencies As a pension provision, in order to stop working earlier, as nursing care insurance So that I can afford something later on For smaller and larger acquisitions, as well as renovations For an upcoming vacation

SAFEGUARDING PURCHASES

75 77 57 37 17 18 38 14 58 14 32 27 16 39 15 20

SLIDE 8

Savings-focused products remain very popular despite interest rate climate

Across region, no capital markets products among Top 3 means of putting money aside

SAVINGS BOOK / CARD 77 37 77 37 BUILDING SAVINGS LIFE INSURANCE, CAPITAL ASSURANCE 62 65 AUSTRIA 52 40 GOVERNMENT-ENDORSED PENSION INSURANCE LIFE INSURANCE, CAPITAL ASSURANCE SAVINGS BOOK / CARD 46 48 43 45 CZECHIA 56 39 59 49 41 SAVINGSACCOUNT LIFE INSURANCE, CAPITAL ASSURANCE GOVERNMENT-ENDORSED PENSION INSURANCE SLOVAKIA 11 21 12 SAVINGS BOOK / CARD / ACCOUNT LIFE INSURANCE, CAPITAL ASSURANCE BUILDING SAVINGS 27 25 28 HUNGARY 22 17 22 21 LIFE INSURANCE GOLD OR OTHER PRECIOUS METALS OPTIONAL PENSION 25 23 ROMANIA 41 10 13 13 12 SAVINGS BOOK / CARD / ACCOUNT BUILDING SAVINGS LIFE INSURANCE 45 CROATIA 9 9 6 8 8 6 LIFE INSURANCE FIXED DEPOSIT SAVING SIGHT DEPOSIT ACCOUNT SERBIA

2015 2016

SLIDE 9

People in CEE are very risk-adverse when investing their money

A U S T R I A C Z E C H I A S L O V A K I A H U N G A R Y R O M A N I A C R O A T I A S E R B I A Very much willing to take risks Rather willing to take risks Mixed Rather safety conscious Very safety conscious No answer % 43

4 6 2 6 8 6 5 6 4 1 2 2 2 2 3 2

23 24 40 33 65 55 34

14 24 21 20 15

41 44 42 38 19 23

3 3 5 4 2 2 2

Croatians are the most risk-adverse, while 10% of Hungarians are “very” or “rather” willing to take risks Czechs and Slovaks show a more developed risk appetite than their Austrian neighbours

SLIDE 10

Procured life insurance, capital insurance, or private pension provision

39 50 11 27 9 10 26 27 12 27 4 17

Diverging responses to low interest rates on deposits

Gave money to own children, grandkids, family members Kept savings in a current account

20 40 10 30 50 38 42 51 22 44

CZ HU HR SK RO RS 2015 2016 CZ HU HR SK RO RS CZ HU HR SK RO RS CZ HU HR SK RO RS

52 29 40 48 13 45 15 19 20 47 22 36 39 14 40 11 15 15

Bought an apartment, house or property

SLIDE 11

30 48 39 40

13 16 18 48 4 22 22 33 16 7 8 1 10 22 47 12 9 21 16 43 10 29 14 14 30 13 11 11 22 10 46 NO ANSWER

CZ HU HR SK RO RS

VERY WELL VERY INSUFFICIENT

2016 2016 2016 2016 2016 2016 2015 2015 2015 2015 2015 2015

Confidence in financial knowledge, investing skills varies sharply across CEE region

How well do you personally feel informed about financial topics and banking products? I know a lot about different possibilities

f investing one‘s money

CZ HR HU SK RS RO 29 38 21 43

AGREE DISAGREE

29 34

47 28

MONEY STUDY 2016 | #EGMS16

SLIDE 12

55 42 41

Across CEE, people say their expenditures under control but many spend more than planned

I have my monthly outgoings and expenditures under control I frequently spend more money than planned

CZ CZ HR HR HU HU SK SK RS RS RO RO 33 3 6 6 6 23 39 41 82 81 75 77 82

48 46 47 29 29 87 11 15

MONEY STUDY 2016 | #EGMS16

SLIDE 13

Spending developments reflect mixed general economic status across CEE

Outlays for staple items have generally remained stable or risen

Groceries Clothing Healthcare Mobile phone/Internet

SPEND MORE SPEND ABOUT THE SAME SPEND LESS NO CURRENT SPENDINGS AND NONE LAST YEAR NO ANSWER

65 66 64 50 53 57 48 60 47 54 73 62 61 62 59 61 66 60 1 1 1 1 1 2 7 9 10 2 12 26 7 5 7 8 12 8 2 3 6 3 6 5 54 23 23 44 30 32 15 22 17 13 17 16 12 15 17 15 15 13 16 32 27 30 11 15 17 26 28 12 25 16 21 7 5 7 7 4 9 10 6 8 8 6 10 4 10 12 9 74 40 59 58 62 65 29 AT: AUSTRIA | CZ: CZECHIA | SK: SLOVAKIA | HU: HUNGARY | RO: ROMANIA | HR: CROATIA | RS: SERBIA BASIS: SURVEY OF AT LEAST 500 MEMBERS OF THE GENERAL PUBLIC AGED 15+ IN EACH COUNTRY MONEY STUDY 2016 | #EGMS16

CZ CZ CZ CZ HU HU HU HU HR HR HR HR SK SK SK SK RO RO RO RO RS RS RS RS

SLIDE 14

Spending developments reflect mixed general economic status across CEE

Outlays for larger-ticket items such as vacations and travel down signifjcantly

Housing and rent Going out Consumer Electronics Vacation, travelling

SPEND MORE SPEND ABOUT THE SAME SPEND LESS NO CURRENT SPENDINGS AND NONE LAST YEAR NO ANSWER

46 44 37 35 33 26 35 39 49 47 41 50 42 37 39 47 40 40 1 1 2 1 1 1 1 1 1 3 3 1 5 4 2 18 15 25 9 33 28 21 26 31 27 29 30 24 27 33 22 33 29 16 11 20 17 15 12 14 16 13 11 15 20 19 19 11 28 21 23 13 29 12 22 14 25 28 5 25 22 22 41 46 18 12 13 4 11 68 46 54 59 62 61 8 17 11 11 12 12 12 23 12 20 11 23 AT: AUSTRIA | CZ: CZECHIA | SK: SLOVAKIA | HU: HUNGARY | RO: ROMANIA | HR: CROATIA | RS: SERBIA BASIS: SURVEY OF AT LEAST 500 MEMBERS OF THE GENERAL PUBLIC AGED 15+ IN EACH COUNTRY MONEY STUDY 2016 | #EGMS16

CZ CZ CZ CZ HU HU HU HU HR HR HR HR SK SK SK SK RO RO RO RO RS RS RS RS

SLIDE 15

Research conducted August–September 2016 Method Telephone-based interviews using the CATI (Computer Assisted Telephone Interviewing) system were conducted in Austria, the Czech Republic, Slovakia, Hungary, Romania, Croatia and Serbia. Sample size In each market, more than 500 members of the general public aged 15+ were interviewed for the survey. Research institute

Erste Group Money Study An annual survey of saving, investment and - - PowerPoint PPT Presentation

Erste Group Money Study

Saving remains important to people across CEE

Widespread dissatisfaction in CEE with ability to save

Diverging responses to low interest rates on deposits

Survey design