#1Erste Group investor presentation FY 2021 preliminary results 28 February 2022 Erste Group closes FY 2021 with record net profit, ROTE of 12.7% Bernd Spalt, CEO Erste Group Stefan Dörfler, CFO Erste Group Alexandra Habeler-Drabek, CRO Erste Group ERSTEŚ Group#2Disclaimer - Cautionary note regarding forward-looking statements • . • • THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THIS INFORMATION OR OPINIONS CONTAINED HEREIN. CERTAIN STATEMENTS CONTAINED IN THIS DOCUMENT MAY BE STATEMENTS OF FUTURE EXPECTATIONS AND OTHER FORWARD-LOOKING STATEMENTS THAT ARE BASED ON MANAGEMENT'S CURRENT VIEWS AND ASSUMPTIONS AND INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR EVENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH STATEMENTS. NONE OF ERSTE GROUP OR ANY OF ITS AFFILIATES, ADVISORS OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER (IN NEGLIGENCE OR OTHERWISE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS DOCUMENT OR ITS CONTENT OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO PURCHASE OR SUBSCRIBE FOR ANY SHARES AND NEITHER IT NOR ANY PART OF IT SHALL FORM THE BASIS OF OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT WHATSOEVER. ERSTEŚ Group Page 2#3Presentation topics • . . . Key developments and executive summary Macroeconomic and business update Operating trends • Volumes • • Revenues and costs Impairments and asset quality Capital and wholesale funding Key takeaways and outlook • Additional information ERSTEŚ Group Page 3#4Key developments (1) - • Hot topic: Ukraine Erste Group has no direct subsidiaries in Russia, Ukraine or Belarus and has only immaterial credit exposure towards those countries. No meaningful additional risk provisions are currently anticipated in this context. • Market exposures (trading book and banking book securities accounted at fair value) are negligible too, resulting in no material economic risk to the bank. • Ongoing analysis of potential second round effects, including: • Screening potential new sanctions risk and associated impacts on credit portfolio • Screening large corporate portfolio for those customers most exposed to Russian, Ukrainian an/or Belarussian activities • • Screening of financial institutions and banks portfolio for indirect exposures to the wider Russian region Ad-hoc scenario for market risk stress test to estimate direct P&L effects of possible market volatility on trading book exposures as well as banking book securities accounted for at fair value • Screening of cyber risks and review of preparedness of business continuity plans for blackout scenarios ERSTES Group Page 4#5Key developments (2) - Setting the frame for today's presentation • . • Encouraging business environment in 2021 • • Economic growth in CEE & Austria has outperformed expectations Faster than expected rate hikes in Czech Republic, Hungary and Romania Strong operating result in 2021: +17.1% • Accelerating NII growth accompanied by record fee result drives operating income up by 8.2% Moderate cost inflation of 2.0% Benign credit risk environment throughout 2021 • Erste Group closes 2021 with risk costs of 9 bps, best NPL ratio since IPO at 2.4% Robust guidance for 2022, but risks are rising rapidly • Continued strong GDP growth in CEE & Austria expected • At least mid-single digit NII growth accompanied by mid-single digit loan growth • • • Fee growth expected in low to mid-single digits assuming constructive capital markets environment Positive jaws, as operating income expected to grow faster than operating expenses 2024 CIR target of 55% likely to be achieved already in 2022 Risk costs to remain moderate (<20 bps) • Again targeting double-digit ROTE • Erste Group defines M&A-/share buyback buffer on top of base dividend . Erste Group to propose to AGM EUR 1.6 DPS for business year 2021 · CET1 ratio portion > 13.5% = M&A-/share buyback buffer with preference for M&A (bolt-ons in existing markets) ERSTEŚ Group Page 5#6ESG update: focus on the Social) and the Governance) - Alignment of employee with shareholder interests ⚫ Erste Group plans to launch employee share programme (ESP) • • • • Key goals of employee share programme • • • Turn employees of the bank in CEE and Austria into shareholders of Erste Group Foster long-term share ownership culture and financial knowledge among employee base Further improve employee retention and employer attractiveness Allow employees to take advantage of tax benefits for share ownership, if applicable Over time establish employee foundation as a significant “shareholder" by transfer of voting rights from employees to employee foundation Planned structure of employee share programme • • 2-pronged programme structure • • Profit participation of EUR 350 pa for each employee subject to (1) parent company paying dividends and (2) parent company and subsidiaries satisfying regulatory capital and liquidity requirements Company subsidised investment opportunity for employees: each employee who purchases additional Erste Group shares up to a certain limit (tbd) is entitled to a sliding scale subsidy of investment volume by company Long-term retention periods, thereafter tax-free disposal possibility, if applicable Shares will be bought by Erste Group on the market - utilising existing buyback authorisation, subject to ECB approval Key numbers of the employee share programme Estimated annual cost of sliding scale subsidy approx EUR 13m • Annual cost of profit participation shares approx EUR 20m • • Total estimated annual cost of programme approx 0.75% of total expenses ERSTEŚ Group Page 6#7Executive summary - Group income statement performance QoQ net profit reconciliation (EUR m) YoY net profit reconciliation (EUR m) +145.6% • . . -11.5% 533 [63] 127 86] 472 80 587 138 [55] 783 8 Q3 21 Operating Operating Risk costs Other income expenses result 1,136 721 183 242 1,923 Taxes on Minorities income Q4 21 2020 Operating Operating Risk costs Other income expenses result Taxes on Minorities 2021 income Q4 21 net result slightly down due to seasonally higher costs, higher provisioning and accelerating operating income growth Operating income benefits from strong NII growth and another record fee income quarter (asset management) Operating expenses up due seasonally higher marketing and legal/consulting costs as well as higher personnel costs (bonus accruals, employee share programme) • • • Yoy net profit growth primarily driven by substantially higher operating income and significant decline in risk costs Operating income benefits from broad-based macro recovery, translating into strong fee performance (double digit increases in payment services, asset management and brokerage fees) Record minorities charge due to strong profitability at savings banks ERSTES Group Page 7#8Executive summary - Key income statement data Net interest income & margin Operating result & cost/income ratio Cost of risk 2.08% 2.05% in EUR m in EUR m in EUR m 4,976 2.08% +17.1% 4,775 1.98% 1,295 0.24% 3,436 58.1% -0.07% 53.4% 2,935 1,221 1,306 906 842 107 2020 2021 Q3 21 Q4 21 2020 2021 159 -31 Q3 21 Q4 21 2020 2021 Q3 21 Q4 21 118 Banking levies 73 in EUR m Reported EPS & ROE in EUR 11.6% 13.7% 10.1% 4.7% 4.17 Return on tangible equity 12.7% 15.0% 11.0% 0 0 0 0 0 0 0 0 0 0 19 1.57 1.25 0.93 5.1% 2 2020 2021 Q3 21 Q4 21 2020 2021 Q3 21 Q4 21 2020 2021 Q3 21 Q4 21 ERSTES Group Page 8#9Executive summary - Group balance sheet performance YTD total asset reconciliation (EUR m) +10.8% 307,428 3 260 14,218 465- 6,362 9,657 277,394 YTD equity & total liability reconciliation (EUR m) 277,394 7,114 -151. +10.8% 19,453 1,103 307,428 1,454 1,062 31/12/20 Cash Trading, Loans to Net loans Intangibles Miscella- 31/12/21 financial assets banks neous assets 31/12/20 Trading Bank Customer Debt Miscellaneous Equity 31/12/21 liabilities deposits deposits securities liabilities • . Total assets grew on the back of a strong rise in net customer loans (+8.6%), increased cash position (+26.9%) and higher volume of trading and financial assets (+13.6%) Increase in cash position and trading/financial assets mainly driven by continued customer deposit inflows and increased TLTRO III uptake (total stands at EUR 21.2bn at YE21) ERSTEŚ Group . • Total liability growth driven by rising customer deposits (+10.2%) and bank deposits (+28.7%) Growing customer deposits drive loan/deposit ratio to 85.6% (YE 20: 86.9%) Increase in equity reflects strong profitability Page 9#10- Executive summary Key balance sheet data Loan/deposit & loan/TA ratio Net loans & credit RWA in EUR bn 86.9% 85.6% +8.6% 59.9% 58.6% 180.3 166.1 Loan/deposit ratio Loans/total assets Net loans B3FL capital ratios 31/12/20 31/12/21 NPL coverage ratio & NPL ratio 90.9% 88.6% 111.2 101.7 Credit RWA NPL coverage 2.7% 2.4% NPL ratio Liquidity coverage & leverage ratio² B3FL capital & tangible equity¹ in EUR bn 189.3% 18.8 19.7% 19.1% 17.1 14.2% 14.5% 14.4 13.2 177.3% 6.7% 6.5% Total capital CET 1 CET 1 Tangible equity LCR LR (B3FL) 1) Based on shareholders' equity, not total equity 2) Includes central bank exposures ERSTES Group Page 10#11Presentation topics • Key developments and executive summary • Macroeconomic and business update • . Operating trends • • • Volumes Revenues and costs Impairments and asset quality Capital and wholesale funding Key takeaways and outlook • Additional information ERSTEŚ Group Page 11#12Macroeconomic update - CEE & AT recovery continues in 2022, rate hikes in CZ, HU & RO • CEE & AT economies have shown remarkable resilience and adaptability through Covid-19 • • • AT: recovery to reaccelerate after relatively weak winter tourism season CZ & SK: sound domestic and foreign demand but supply chain disruptions still have an impact on industrial output RO: slower dynamics in Q4 2021; economic growth to be supported by EU-funded investments in 2022 Real GDP expectations for 2022 (in %) 5.4 4.3 4.5 4.6 3.0 3.2 3.2 • • HU: very strong performance supported by relaxed fiscal policy, boosted investments, services and construction HR: EU-funds related investments and further normalisation of tourism to support economic performance SK RO CZ AT RS HR HU • • Multiannual Financial Framework and EU Next Generation funds to support recovery and growth Interest rate tightening cycle under way in CEE - faster and more sizeable than expected • Strong economic recovery and elevated inflation led to higher rate expectations CEE economies proved their resilience and experienced quick recovery Key interest rates (in %) (as of 22 February) 4.50 3.40 2.50 • Inflation has risen due to mismatch between supply and demand following re-opening of economies; expected to moderate in the second half of 2022 1.00 0.00 0.05 • Further rate hikes expected in HU, RO ECB HR RS RO • RS also expected to start hiking interest rates H = 30 HU CZ ERSTES Group Page 12#13Macroeconomic update - Economic rebound set to continue in 2022, albeit at slower pace 2021 2022 Real GDP growth (in %) Dom. demand contribution* (in %) Net export contribution* (in %) Consumer price inflation (avg, in %) 7.4 10.4 6.2 5.3 9.6 5.5 5.4 7.1 4.9 4.8 5.0 7.5 7.2 2.1 4.3 1.7 6.3 5.6 3.9 5.4 3.7 0.6 0.4 5.0 5.1 4.8 4.3 4.6 2.5 3.9 3.8 ☐ 3.3 3.2 3.0 3.0 3.2 -0.5 -0.9 -0.5 -0.8 -0.4 2.8 3.2 3.8 2.6 1.1 -2.3 -1.8 AT CZ SK RO HU HR AT CZ SK RO HU HR AT CZ SK RO HU HR AT CZ SK RO HU HR • • CEE & AT have demonstrated resilience in 2021; strong performance expected to continue with 2022 GDP growth of ~3-5% in CEE & AT Economies mostly driven by investments while supply chain issues have impacted industrial output . Strong economic recovery has been accompanied by visibly higher inflation; inflationary pressure expected to slightly ease in H2 2022 Unemployment rate (avg, in %) Current account balance (% of GDP) Public debt (% of GDP) Gen gov balance (% of GDP) 2.9 2.2 83 7.8 0.8 1.1 0.3 7.0 6.5 6.8 6.2 5.2 5.5 5.3 -0.8 4.1 3.8 79 78 75 81 78 63 62 50 50 60 -1.1 -0.7 42 43 -2.5 -2.9 2.9 2.7 -2.9 -3.1 -4.1 -4.0 -4.5 -5.1 -6.2 -6.0 -6.2 -6.8 -6.5 -7.3 -7.1 -7.8 AT CZ SK RO HU HR AT CZ SK RO HU HR AT CZ SK RO HU HR AT CZ SK RO HU HR • • Unemployment rates expected to decline in CEE & AT in 2022 • Fiscal deficits positively impacted by stronger tax revenues due to cyclical rebound and phasing out of covid-19 support in 2022 * Contribution to real GDP growth. Domestic demand contribution includes inventory change. Source: Erste Group Research, EU Commission ERSTEŚ Group Page 13#14Business update - Retail - what's happening on the ground? (1) • Strong demand for housing loans throughout 2021 Refinancing and increased mortgage demand in expectation of (further) interest rate hikes as the key drivers in CEE . • Rising share of fixed-rate housing loans Demand for consumer loans growing again, reflecting slowly increasing consumer confidence Client deposits continue to increase significantly, Erste Group perceived as a trusted partner for customers in all markets High demand for securities products throughout 2021 • • from securities driven by AT, CZ, HU Investment funds volumes growing, increase in fee income Increase of newly opened securities saving plans strongly supported by new digital solutions Housing loans Loan portfolio (in EUR billion) Consumer loans +11% +2% 66.2 11.6 11.8 59.6 December December 2020 2021 December December 2020 2021 Development of fee income securities (in EUR million) +29% 462 Newly opened regular securities saving plans (in thsd pieces) +43% 373 • • Annualised investment volume regular savings: > EUR 1 bn Demand from customers for insurance solutions (both life and non-life insurance) growing given increased client awareness for financial protection ERSTE Group 357 261 2020 2021 2020 2021 Page 14#15Business update - Retail - what's happening on the ground? (2) Clients continue to go digital Number of George users (in thsd) • More than 7.8 million users onboarded to George across 6 markets, vast majority of clients use mobile app • Clients appreciate broad digital offering of banking products - digital sales continue to increase substantially Offering for securities and insurance products further • • • extended, additional green products launched Offering of sustainable investment solutions broadened in CEE markets Additional insurance products offered via George (e.g. health insurance in HR, short-term travel insurance in CZ) Pilots for green mortgages started in selected markets Ongoing focus on improving customer experience results in increasing CXI (Customer experience indicator) values and supports the acquisition of new customers • Austrian savings banks show a strong sector performance, particularly driven by securities business +28% 7,830 6,100 Dec 2020 Dec 2021 Development of digital sales (in thsd pieces) 960 +43% 1,374 ERSTEŚ Group 2020 2021 Page 15#16Business update - Corporates & Markets - what's happening on the ground? . . Loan demand continues to grow Loan volume grew by more than EUR 5bn yoy; highest growth in our major markets in Austria, Romania and the Czech Republic; increase in all segments (LC, SME, CRE and PS) Record operating result on the back of higher income from core revenues, net trading and the fair value result as well as due to a strong fee development Outstanding year for Capital Markets business . • • Capital markets business performed exceptionally well with an operating income of more than EUR 600m Erste Group executed several capital markets transactions, amongst others the EUR 1bn initial public offering of CTP- the largest IPO in the European real estate sector since 2014 A total issuance volume of almost EUR 96bn was achieved through 205 mandated transactions (for all C&M segments) accompanied by a fee result of more than EUR 36m • Growth in Asset Management Corporate loan stock development (gross, business line view, in EUR bn) +8.7% +8.7% +3.3% +3.7% +5.6% 57.6 59.8 58.1 61.3 63.1 58.1 63.1 58.1 56.8 58.6 Q1 Q1 20 21 Q2 Q2 20 21 Q3 Q3 20 21 Q4 Q4 20 21 FY FY 20 21 20 Corporate segment operating results development (business line view, in EUR m) +16.0% 1,189.4 1,025.6 +20.5% +8.8% +18.6% +16.5% Assets under management stood at almost EUR 77bn at year- end 2021 (nearly +13% yoy) 233.1 280.8 260.2 283.2 254.1 301.3 278.2 324.2 • ESG-related AUM increased to EUR 15.5bn (nearly +15% yoy) Asset management sales in Retail more than tripled in 2021 to EUR 3.3bn Q1 Q1 Q2 Q2 Q3 Q3 20 21 20 21 20 21 Q4 Q4 20 21 FY FY 20 21 ERSTEŚ Group Page 16#17Presentation topics • . • . Key developments and executive summary Macroeconomic and business update Operating trends • • • Volumes Revenues and costs Impairments and asset quality Capital and wholesale funding Key takeaways and outlook • Additional information ERSTEŚ Group Page 17#18Operating trends: net loan stock & growth - Strong net loan growth in 2021 YoY 31/12/20 QoQ 30/09/21 31/12/21 Yoy growth strong and well balanced across all key business lines: Retail (+9.3%) driven by housing loans, Savings Banks (+6.9%), Corporates (+9.0%) Qoq growth dynamics more pronounced in Corporate (+3.1%) than in Retail (+2.5%); Savings Banks strong at +1.8% Year-on-year segment trends • 166.1 • 8.6% Group 175.9 2.5% 180.3 35.4 5.0% AT/EBO e 36.8 1.0% 37.2 50.2 6.9% AT/SB 52.8 1.8% 53.7 15.5 AT/OA 16.6 11.9% 4.1% 17.3 • 28.9 CZ 32.0 33.7 8.8 RO 9.4 9.7 14.9 SK 15.5 15.9 4.8 H HU I 16.7% 5.1% 9.5% 2.8% 6.7% 2.7% • 5.3% 5.1 -1.2% 5.1 7.1 1.3% HR 7.2 -0.4% 7.2 1.7 RS 1.8 1.8 ∞ ∞ 5.0% -1.3 Other -1.3 -1.3 in EUR bn 8.6% Not meaningful • CZ: strong demand supported by CZK appreciation (+5.3%); in Retail growth entirely attributable to mortgages, while Corporate growth balanced among SMEs and Large Corporates AT/OA: strong loan demand from large corporates HR: muted growth in all business lines Quarter-on-quarter segment trends • CZ: despite rate hikes continued strong demand for housing loans AT/OA: higher loan demand from Large Corporates (Holding) HU: decline entirely attributable to currency depreciation (2.5%) ERSTE Group Page 18#19Operating trends: customer deposit stock & growth - Strong deposit growth, loan/deposit ratio at 85.6% Group CZ 25 -8.3% 13.6% 191.1 10.2% 207.5 210.5 1.5% 42.1 7.9% AT/EBO e 44.9 1.2% 45.4 56.6 7.9% AT/SB 58.9 3.8% 61.1 5.8 AT/OA 8.3 7.6 41.9 49.3 -3.3% 47.7 13.3 13.3 9.9% 10.3% 14.6 14.9 SK 15.6 16.0 7.4 HU 7.8 8.7 8.0 HR 8.9 9.1 1.6 RS 1.7 1.9 PO RO St -0.5 Other -1.0 -1.5 679 2.2% 7.4% 29.9% • . 17.4% • 11.1% 14.1% 2.5% 16.7% 8.1% Not meaningful in EUR bn YoY 31/12/20 QoQ 30/09/21 31/12/21 Yoy growth due to exceptional inflows of Retail (+11.2%) as well as Corporate deposits (+14.1%); Savings Banks also strong (+7.9%) Qoq development driven by Retail (+2.8%) and Savings Banks inflows (+3.8%), while Corporate growth (+1.3%) decelerated Year-on-year segment trends: • • • AT/OA: rising deposits in foreign branches (intragroup; offset in Other seg) and in financial institutions business HU: strong growth in Corporate and Retail deposits, on the back of strong economic performance RS: exceptional growth driven primarily by Retail inflows Quarter-on-quarter segment trends: • AT/OA: decline due to lower deposit volumes in Group Markets business line CZ: seasonally lower Corporate and Group Markets deposits offset by continued strong Retail inflows HU: strong deposit inflow primarily due to large increase in Corporate sight deposits ERSTE Group Page 19#20Operating trends: NII and NIM - NII growth accelerates on rising rates and volume growth Group • Q4 20 Q3 21 Q4 21 ⚫ NII up yoy on solid volume growth and improved rate environment, primarily in CZ Qoq increase due to higher CZ interest rates, continued volume growth 1,186 1.221 2.05% 1.98% 1,306 2.08% 156 1.44% AT/EBO e 160 1.40% 164 1.42% 268 1.66% AT/SB 271 1.61% 272 1.60% 110 1.16% AT/OA 103 1.05% 119 1.21% 261 1.86% CZ 286 1.78% 329 2.05% 107 3.09% RO 107 2.98% 111 110 SK 106 107 HF HU 519 57 72 2.99% 2.35% 2.25% 2.21% 2.57% 2.70% 64 HR 16 RS 19 19 666 68 68 67 ∞ ∞ 7 Other 29 2.78% 2.66% 2.90% 3.32% 3.19% 32 965 34 Not meaningful 54 in EUR m ERSTEŚ Group 2.42% 2.91% Year-on-year segment trends: • • CZ: volume growth and rate hikes push NII up Other: better ALM contribution, complemented by intercompany effects (no impact on bottom line) Quarter-on-quarter segment trends: AT/OA: across-the-board better contributions from Corporates and Group Markets segments HU: decline due to one-off effects (mortgage interest cap: EUR 3.0m, rate cap for moratoria-related credit card debt and overdrafts: EUR 9.8m) CZ: see yoy development Other: see yoy development Page 20#21Operating trends: operating income - 5th consecutive record fee performance and NII drive revenues Group 22 1,869 1,944 2,007 YOY Q4 20 QoQ Q3 21 Q4 21 Revenues up yoy, pushed by exceptional fee and strong NII performance Qoq increase attributable to best NII print since Q4 11 and record fee income, offsetting weaker net trading and FV result Year-on-year segment trends: • 7.4% 3.2% • 283 AT/EBO e 294 10.3% 6.1% 312 446 1.9% AT/SB 439 3.6% 455 214 1.8% • AT/OA 194 12.4% 218 • 364 18.0% CZ 402 • 6.9% 430 176 7.6% RO 180 5.6% 190 153 2.7% SK 159 -0.7% 158 120 -11.1% HU 130 -18.3% 107 102 HR 110 107 21 26 25 -11 H RS Other 17 222 165 11 in EUR m 4.5% -3.3% -1.3% 18.2% Not meaningful • CZ: higher NII = key revenue driver RS: strong business growth drives up NII and fees AT/EBOe: increase due to strong fees (asset management, payment services) and higher NII (deposit fees for corporate clients) HU: stronger core revenues offset by weaker net trading & FV result (negative revaluation of FV loans as a result of higher interest rates) Quarter-on-quarter segment trends: • • AT/OA: better NII (Corporates, Group Markets) and fees push up revenues HU: one-off effects weigh on NII, while weaker net trading & FV result (see yoy comment) is key driver of revenue decline ERSTEŚ Group Page 21#22Operating trends: operating expenses - Costs increase on higher personnel and administrative spend Group 6.2% 12.3% • • YoY Q4 20 QoQ Q3 21 Q4 21 Yoy increase due to higher personnel costs (employee share programme, bonus accruals); other administrative expenses, depreciation/amortisation stable Qoq development attributable to personnel costs, seasonally higher other administrative expenses Year-on-year segment trends: • 1,097 1,038 1,165 192 -4.2% AT/EBO e 168 9.8% 184 288 2.2% . AT/SB 266 10.4% 294 99 -3.6% AT/OA 87 9.9% 96 173 27.2% CZ 190 15.8% 220 93 2.3% RO 81 18.1% 95 • 73 69 3.6% 9.9% 76 54 HU 58 1056 480 12.7% 3.5% 60 49 17.6% HR 54 7.3% 58 18 RS 12 15 15.5% • 3 38.3% 21 58 Other 50 Not meaningful 61 in EUR m SK 787 CZ: higher personnel expenses due to higher bonus accruals, wage increases and employee share programme; FX effect EUR 8.7m HR: mainly driven by higher staff costs (wage increases) • HU: mainly higher wage costs • AT/OA: lower costs due to London branch closure in Q4 20 Quarter-on-quarter segment trends: RS: mainly driven by higher other administrative expenses (IT, legal and consultancy, marketing) RO: driven by across-the-board higher other administrative expenses (IT, marketing, office space, legal & consultancy) and higher personnel expenses ERSTEŚ Group Page 22#23Operating trends: operating result and CIR- Operating result up 17.1% in 2021, CIR improves to 55.6% Operating result YoY Q4 20 QoQ Q3 21 Q4 21 772 Group 906 YoY &QoQ change 9.0% -7.2% Cost/income ratio 58.7% 53.4% 842 58.1% 90 68.0% 41.2% AT/EBO e 126 57.1% 1.3% 128 59.1% 159 64.5% 1.5% AT/SB 173 60.7% -6.8% 161 64.6% 115 46.4% AT/OA 107 6.5% 44.9% 14.5% 122 43.9% 192 47.4% 22 9.7% CZ 212 47.2% -1.0% 210 51.1% 83 52.9% RO 99 13.7% 44.9% -4.6% 94 50.2% 80 47.7% 2.0% SK 90 43.4% -8.8% 82 48.0% 66 44.7% 10 -30.4% HU 72 44.8% -35.9% 46 56.7% 53 48.2% HR 56 -7.6% -13.5% 48.9% 49 54.2% 3 86.7% 35.5% RS 10 4 -61.9% 60.5% 84.8% -68 Other -39 -54 Not meaningful Not meaningful in EUR m ERSTE Group Page 23#24Operating trends: risk costs (abs/rel*) - Benign risk environment throughout 2021 - risk costs of 9 bps Group -31 CZ • • Q4 20 Q3 21 Q4 21 Steep decline of yoy risk costs attributable to few defaults, absence of special UTP assessment and updated management overlays (Covid heatmap) Qoq increase due to new defaults, method effects, while overall risk environment remained favourable Year-on-year segment trends: . 70425 1.00% -0.07% 107 0.24% 39 0.44% AT/EBO e 0.03% 14 0.15% 102 0.80% AT/SB -37 -0.28% 28 0.21% 50 1.24% AT/OA 15 0.36% -17 -0.40% 123 1.68% 19 0.23% 18 0.21% 50 2.18% -0.06% 32 1.28% 21 0.56% SK -28 -0.71% 3 0.07% 19 1.72% HU 3 0.24% 10 0.90% 30 1.58% -0.24% 22 1.14% • 1.58% 0.76% 0.29% Not meaningful in EUR m RO HG HR RS Other -16 2 5 7 3 1 Generally lower risk costs on better macro, few defaults, absence of special UTP assessment apart from HU Quarter-on-quarter segment trends: • AT/OA: large single recoveries in CRE and LC; method effects (PD updates) weighing on Q3 21 AT/SB: in Q3 21 method effects (macro update, lifetime PDs) had positive impact, in Q4 21 method effects had negative impact, resulting is significant swing RO: retail and corporate PD updates drive higher charge SK: previous quarter benefitted from single case release HR: higher charge due to parameter updates and stage migrations (S1/S2) *) A positive (absolute) figure denotes risk costs, a negative figure denotes net releases. Relative risk costs are calculated as annualised quarterly impairment result of financial instruments over average gross customer loans. ERSTE Group Page 24#25☐ 2.7% Group 2.4% 88.6% 92.7% 2.4% 90.9% 1.6% 63.4% AT/EBO e 1.5% 63.6% 1.5% 62.0% 2.8% 2.4% 70.2% 73.7% 2.4% 70.2% 2.8% 78.1% AT/OA 2.5% 85.6% 2.4% 78.2% 2.2% 115.1% Operating trends: asset quality - NPL ratio and coverage NPL ratio at historic low, coverage ratio at comfortable level AT/SB 31/12/20 30/09/21 31/12/21 NPL ratio improves to 2.4% and NPL coverage increases to 90.9% on decreasing yoy NPL stock and accelerating loan growth • Stage 2 ratio improved to 16.7%, with strong coverage of 4.0% • Post-moratoria experiences continue to be promising No significant increase in hard defaults observed yet • CZ 2.1% 113.4% 2.1% 111.3% 4.5% 122.5% RO 4.0% 130.8% 3.9% 138.2% 2.4% 107.4% SK 1.9% 117.0% Risk provisions by IFRS9 stages 1.8% 115.9% CLA Coverage 3.0% 111.4% HU 3.0% 114.0% in EUR million Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Dec 21 Dec 21 3.7% 95.4% Stage 1 78.4% 78.2% 78.9% 79.2% 80.4% 412 0.3% 6.7% 89.7% HR 5.9% 95.3% Stage 2 18.4% 18.7% 18.1% 17.9% 16.7% 1,238 4.0% 5.5% 102.5% Stage 3 2.5% 2.5% 2.4% 2.3% 2.3% 2,198 52.8% 1.5% 168.2% POCI 0.2% 0.2% 0.2% 0.2% 0.2% 88 26.9% RS 2.1% 125.5% 2.1% 124.4% Subject to IFRS9 99.6% 99.6% 99.5% 99.5% 99.6% 3,936 2.1% Not subject to IFRS 9 0.4% 0.4% 0.5% 0.5% 0.4% 0 0.0% Other Not meaningful Not meaningful Gross customer loans 170,020 171,811 176,094 179,848 184,177 3,936 2.1% ERSTES Group Page 25#26Operating trends: other result - - Other result deteriorated in 2021 on valuation effects -58 Group -91 -83 AT/EBO e AT/SB 4 -10 сл -5 -18 AT/OA -21 10 CZ -38 -49 RO -8 -6 -9 -8 -14 HU -25 3 SK HR RS 10 -5 -2 21 Other -30 -22 ● • Yoy deterioration attributable selling losses from securities in Q4 21 Q4 20 Q3 21 Q4 21 Other result improves qoq due to breakage costs for early loan repayment in previous quarter Year-on-year segment trends: • • AT/OA: releases of provisions for litigation and other risks and lower new allocations CZ: higher impairments for buildings and software, increased legal provisions RO: improved subsidiary results and provisions releases Other: impairment of SK participation, charges at IT service providers Quarter-on-quarter segment trends: AT/OA: breakage costs related to early loan repayment in Q3 21; release of provisions in Q4 21 CZ: see above HU: reversal of temporary moratoria-related provisions and property-related selling gains ERSTES Group in EUR m Page 26#27Operating trends: net result - Net profit increases more than twofold in 2021 Group 146 533 2 48 AT/EBO e 87 80 18 AT/SB 22 15 35 43 116 65 151 120 AT/OA CZ • • • -19 RO 78 41 34 SK 88 53 • 29 35 36 33 56 HU 10 34 HR 13 -6 RS -59 Other .10 -3 40 in EUR m Q4 20 Q3 21 Q4 21 Yoy profitability up on lower risk costs and improved operating performance Minor qoq decline attributable to higher risk costs and increased operating costs (employee share programme) Year-on-year segment trends: . AT/EBOe: better operating performance and lower risk costs AT/OA: lower risk costs and better other result CZ: lower risk costs and better operating result RO: significantly improved other result Other: improvement due to deferred tax asset write-up Quarter-on-quarter segment trends: • AT/OA: lower risk costs and negative one-off in Q3 21 • RO: significantly higher risk costs SK: previous quarter benefitted from risk cost release • Return on equity at 10.1%, following 13.7% in Q3 21, and 2.3% in Q4 20 • Return on tangible equity at 11.0%, following 15.0% in Q3 21, and 2.5% in Q4 20 ERSTEŚ Group Page 27#28Presentation topics • • . Key developments and executive summary Macroeconomic and business update Operating trends • Volumes • Revenues and costs • • Impairments and asset quality Wholesale funding and capital Key takeaways and outlook • Additional information ERSTEŚ Group Page 28#29- Wholesale funding and capital: debt vs interbank funding Stable wholesale funding reliance, as customer deposits grow strongly Debt securities issued in EUR bn Interbank deposits -4.1% 33.5 32.1 Sub debt 30.7 4.9 Senior non-preferred bonds 5.4 5.4 [1.4] Senior unsec. bonds -9.9% 35.4 3.2 31.9 1.8 1.5 0.7 Certificates of deposit 24.8 11.9 Other CDs, name cert's 2.1 9.5 12.2 Mortgage CBs 1.0 -0.5 Public sector CBs 29.8 31 20 3.2 1.0 29.2 1.3 Other -1.0 21.7 12.8 11.0 10.6 0.2 0.0 0.0 =0.5 31/12/20 0.2 30/09/21 0.2 31/12/21 • • Increased MREL-related issuance leads to rise in stock of senior unsecured bonds Temporary increase in CDs reverses towards year-end High liquidity (attributable to substantial deposit inflow and TLTRO III) results in decline in covered bonds issuances ERSTEŚ Group • 0.9 31/12/20 2.3 30/09/21 1.0 31/12/21 in EUR bn Overnight deposits Term deposits Repurchase agreements Significant yoy increase in interbank deposits predominantly driven by increased TLTRO III balance, balance sheet management Page 29#30Wholesale funding and capital: LT funding – - Stable LT funding needs in 2022 with recurrence of covered bond funding Maturity profile of debt . 5.2 in EUR bn 3.5 3.6 2.9 2.4 2.4 2.1 1.4 1.2 0.6 0.7 0.1 0.0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034+ Senior unsec. bonds Senior non-preferred bonds Covered bonds Capital exc Tier 1 Debt CEE Erste Group returned to the covered bond market after a two year absence with a 6.5 and 15 year dual tranche, EUR 750m each, opening the market for European FIG issuers in January 2022 • 2022 funding volume of Erste Group Bank AG comparable to 2021 levels • 2027 maturity peak attributable to MREL issuances . ⚫ TLTRO III outstanding as of 31 Dec 2021: EUR 21.2bn ERSTES Group Page 30#31Wholesale funding and capital: MREL update - All resolution groups successfully completed their inaugural MREL issuances MREL resolution groups (December 2021) Preliminary 3year MREL issuance plan (avg. p.a.) in EUR m 191 in EUR bn ~1,000 2,000 83 66 22 23 18 9 8 12 7 12 6 AT CZ SK RO HR HU Total RWA • • Total assets Under MREL there are 6 MPE resolution groups: 3 (AT, SK, HR) covered by the Single Resolution Board and 3 (CZ, RO, HU) covered by the respective National Resolution Authority The Austrian resolution group (parent company, EBOe and savings banks) is not considered a legal entity or reporting unit, hence there is neither a statutory reporting nor a capital requirement for the Austrian resolution group ERSTEŚ Group • • Holding ~400-500 ~300-400-300-400 ~100-200~100-200 CZ SK RO HR HU CEE issuances will mainly be placed in domestic market and Euro markets First NPS issuances by Holding (in EUR) and BCR (in RON) in 2019 and Slovenská sporiteľňa in 2020 MREL-related issuances in 2021: . Holding: EUR 2bn PS bonds (3 benchmarks) • CZ: EUR 500m NPS bond (1 inaugural benchmark) • SK: EUR 230m PS bonds (in 2 tranches) • RO: RON 1.6bn NPS and RON 500m PS bonds • HR: EUR 445m PS (international EUR 400m and domestic EUR 45m bonds) MREL-related issuances in 2022: . HU: EUR 350m PS (international) Page 31#32Wholesale funding and capital: CET1 ratio waterfall - Fully loaded CET1 ratio advances to 14.5% at YE2021 - in % 1.60 -0.66 0.27 -0.11 -0.18 0.12 0.13 14.50 14.20 -1.15 0.27 Reg. Min CET1 10.2% (MDA CET1 Target 13.5% YE'20 A RWA Profit threshold; P2G excluded) Dividend accrual Intangibles Risk Costs & NPE OCI Minorities DTAs CET1 other YE'21 CET1 ratio rises as 2021 profit generation exceeds RWA growth, other effects • RWAs up by EUR 9.5bn to EUR 129.6bn, driven by rise in credit risk (business growth, method effects) • Full year profit of EUR 1.927m (CRR scope), dividend of EUR 1.60 per share and AT1 coupon incorporated • Lower deduction of intangible assets (EUR +322m) mainly driven by incorporation of prudent amortization on software assets Favourable development of NPE backstop (EUR +90m) and lower risk costs (EUR +71mn) • Positive OCI development mainly driven by improvement in FX translation (EUR +272mn) partly counterbalanced by lower FV changes from debt instruments (EUR -152m) • Increase in minorities (EUR +327m) mostly driven by early-profit inclusion of savings banks • Rise in deduction for deferred tax assets (EUR -129m) Higher deduction in own CET1 instruments and higher adjustments for prudent valuation (in total EUR -211m) ERSTEŚ Group Page 32#33Wholesale funding and capital: capital & RWA - - Risk-weighted assets grow by 7.9% in 2021, in line with loan growth Basel 3 capital in EUR bn Risk-weighted assets Basel 3 capital ratios in EUR bn 24.8 23.6 23.4 23.8 23.9 127.1 128.5 129.6 120.2 121.0 4.4 4.1 3.7 3.8 3.7 3.6 3.4 3.7 3.6 3.8 14.2 14.2 14.8 14.8 14.2 2.2 2.2 2.2 2.7 2.7 17.1 17.0 18.0 18.3 18.8 101.7 103.0 108.4 110.2 111.2 31/12/20 31/03/21 30/06/21 30/09/21 31/12/21 Tier 2 AT1 CET1 • CET1 capital up 10.2% in 2021 . • . Retained earnings: + EUR 1.2bn Minority interest: + EUR 0.3bn Other intangible assets: - EUR 0.3bn AT1 declines by EUR 500m on calling XS1425367494 AT1 instrument ERSTEŚ Group 31/12/20 31/03/21 30/06/21 30/09/21 31/12/21 14.2% 16.5% 19.7% 14.0% 16.3% 19.4% 14.2% 18.7% 15.9% 14.2% 18.6% 16.0% 14.5% 31/12/20 31/03/21 30/06/21 30/09/21 31/12/21 Market risk Op risk RWAs up by 7.9% in 2021 . • Credit RWA Credit RWA: +9.3% in 2021, mainly on business growth (+ EUR 9.9bn), method and regulatory effects (+ EUR 3.8bn for new LGD model, CRR2 implementation), while portfolio effects (- EUR 4.1bn) contributed positively Market and op risk RWA stable in 2021 • • CET1 Tier 1 Total capital CET1 ratio (final) at solid 14.5%, ahead of 13.5% target Management to propose EUR 1.6 dividend per share for FY2021 to 2022 AGM (FY2020: EUR 1.5 per share) Page 33 16.2% 19.1%#34Wholesale funding and capital: uses of (excess) capital - Organic capital generation supports business growth and capital return • Priorities for the use of (excess) capital CET1 requirement (SREP) 1. Funding organic business growth 2. Rewarding shareholders with adequate regular dividend targeting progressive dividend policy within 40-50%* payout corridor - • Payout ratio* for FY2021 (DPS = EUR 1.6): 38.7% 11.16% Pillar 2 CET 1 guidance Pillar 2 CET 1 requirement 1.00% 0.98% Combined buffer requirement 4.68% Pillar 1 CET requirement 4.50% Dec 21 3. Investing in inorganic business growth by way of bolt-on acquisitions in existing markets, such as Commerzbank transaction in Hungary 4. Additional capital return by way of share buybacks Excess capital component in CET1 ratio Excess capital 14.50% 1.00% *) Payout ratio = (DPS * number of shares issued at the end of the period)/ (net result for the period attributable to owners of the parent after deduction of AT1 capital dividend ) ERSTEŚ Group Mid-term capital target 13.50% Dec 21 Page 34#35Presentation topics • • . . • Key developments and executive summary Macroeconomic and business update Operating trends • Volumes • • Revenues and costs Impairments and asset quality Capital and wholesale funding Key takeaways and outlook • Additional information ERSTEŚ Group Page 35#36Conclusion - Key takeaways and outlook for 2022 Operating environment Business performance Credit risk 2021 key takeaways 2021 was a year of broad-based macro recovery Loan growth accelerated to +8.6% in 2021 Deposit growth came in at +10.2% Operating income grew by 8.2% on the back of strong fee (+16.5%) and NII (+4.2%) growth Operating costs up by just 2.0% despite inflation Operating result: +17.1%, CIR at 55.6% Very favourable risk environment resulted in low risk costs (9bps of average gross customer loans) Strong asset quality indicators: NPL ratio at 2.4%, NPL coverage at 90.9% 2022 outlook Real GDP to rise 3-5% in 2022 in Erste Group's core CEE markets and Austria Mid-single digit loan growth expected At least mid-single digit NII growth Low to mid-single digit fee growth Positive jaws, as operating income expected to grow faster than costs; <55% CIR likely already in 2022 2022e risk charge expected to be <20 bps of gross customer loans YE22e NPL ratio expected below.3.0% Capital position & capital return Fully loaded CET 1 ratio advanced to 14.5% Dividend per share of EUR 1.6 proposed to 2022 AGM 2022 dividend per share > 2021 DPS Definition of excess capital buffer for bolt-on M&A and potential share buybacks Profitability Risk factors to guidance ROTE recovered to 12.7% Improved operating performance and low risk costs were key net profit drivers Double-digit ROTE expected for 2022 Political, regulatory, geopolitical, economic, health and competition risks, also non-financial and legal risks Indirect effects from evolving Russia-Ukraine situation, such as financial market volatility, sanctions-related knock-on effects on some of our customers or the emergence of deposit insurance or resolution cases Uncertainties due to Covid-19 policy measures; economic downturn may put goodwill at risk ERSTEŚ Group Page 36#37Presentation topics • • . . Key developments and executive summary Macroeconomic and business update Operating trends • Volumes • • Revenues and costs Impairments and asset quality Capital and wholesale funding Key takeaways and outlook • Additional information ERSTEŚ Group Page 37#38Additional information: footprint - Customer banking in Austria and the eastern part of the EU CZ SK AT Erste Group footprint HU RO SI HR RS BIH MN MK Czech Republic Customers: 4.5m Employees: 9,711 Branches: 418 MD Slovakia Customers: 2.1m Employees: 3,644 Branches: 200 Hungary Customers: 0.9m Employees: 3,238 Branches: 105 • • Highlights Leading retail and corporate bank in 7 geographically connected countries Favourable mix of mature & emerging markets with low penetration rates Potential for cross selling and organic growth in CEE • Number of customers: 16.1 million Romania Customers: 2.9m Employees: 5,342 Branches: 326 • Number of employees: 44,596 Number of branches: 2,091 Core markets Indirect presence Austria Customers: 3.9m Employees: 15,606 Branches: 820 (EBOe: 177) Croatia Customers 1.3m Employees 3,220 Branches: 135 Serbia Customers: 0.5m Employees: 1,197 Branches: 87 Employees: FTEs as of end of reporting period (The presented FTE data exclude FTES outside Erste Group's core markets in Austria and CEE as well as FTEs of specific services entities not located in Austria) ERSTEŚ Group Page 38#39Additional information: strategy - A real customer need is the reason for all business Customer banking in Central and Eastern Europe Eastern part of EU Focus on CEE, limited exposure to other Europe Retail banking Corporate banking Capital markets Public sector Interbank business Acting as Prosperity Advisor for the people in our region; the result of our advice is the financial health of our customers Support customers to build up and secure wealth Democratising advice via George Active management of customer journeys to increase profitability and customer satisfaction SME and local corporate banking Advisory services, with focus on providing access to capital markets and corporate finance Transaction banking services (trade finance, factoring, leasing) Commercial real estate business Focus on customer business, incl. customer- based trading activities In addition to core markets, presences in Poland, Germany, New York and Hongkong with institutional client focus and selected product mix Building debt and equity capital markets in CEE Financing sovereigns and municipalities with focus on infrastructure development in core markets Any sovereign holdings are only held for market- making, liquidity or balance sheet management reasons Focus on banks that operate in the core markets Any bank exposure is only held for liquidity or balance sheet management reasons or to support client business ERSTEŚ Group Page 39#40Additional information: market shares - - Commanding market shares across the CEE region Gross retail loans Gross corporate loans AT 21.1% 21.2% AT 22.6% 23.4% AT Retail deposits 22.0% 23.0% AT 31/12/20 30/09/21 31/12/21 Corporate deposits 21.2% 25.6% 12.2% 21.2% CZ 26.6% CZ 75 12.1% 21.3% 26.8% 12.1% 17.3% 28.4% 11.9% 17.6% SK 28.3% SK 13.8% 18.1% 28.3% 13.4% 12.9% 14.5% 13.9% 12.9% RO 14.0% RO 12.9% 12.1% 13.9% 14.3% 7.8% 10.5% 6.3% HU 6.9% HG H HU 10.6% HU 6.9% 6.8% 10.7% 7.3% 21.5% 14.9% 17.7% 21.9% HR 15.1% HR 17.5% 22.2% 15.1% 18.2% 6.8% 4.9% 7.5% RS 6.7% RS 5.2% RS 7.1% 7.0% 5.2% 7.5% 23.9% CZ 24.4% CZ 24.6% 25.4% SK 24.7% SK 24.7% 17.1% RO 16.9% RO 17.0% 12.0% HU 11.8% 11.7% 14.1% HR 13.9% HR 13.7% 7.4% RS 7.3% 7.3% * Market shares for Austria not yet available as of 31/12/21 ERSTEŚ Group 24.4% 25.6% Page 40#41Additional information: income statement - Year-to-date and quarterly view in EUR million Net interest income Interest income Other similar income Interest expenses Other similar expenses Net fee and commission income Fee and commission income Fee and commission expenses Dividend income Net trading result Gains/losses from financial instruments measured at fair value through profit or loss Net result from equity method investments Rental income from investment properties & other operating leases Personnel expenses Other administrative expenses Depreciation and amortisation Gains/losses from derecognition of financial assets measured at amortised cost Other gains/losses from derecognition of financial instruments not measured at fair value through profit or loss Impairment result from financial instruments Other operating result Levies on banking activities Pre-tax result from continuing operations Taxes on income Net result for the period Net result attributable to non-controlling interests Net result attributable to owners of the parent Operating income Operating expenses Operating result ERSTEŚ Group Year-to-date view Quarterly view 2020 2021 YOY-A Q4 20 Q3 21 Q4 21 YOY-A QOQ-A 4,774.8 4,975.7 4.2% 1,185.6 1,220.8 1,306.2 10.2% 7.0% 5,107.9 5,108.9 0.0% 1,225.0 1,274.8 1,400.0 14.3% 9.8% 1,461.7 1,476.5 -621.2 1.0% 357.9 336.0 362.6 1.3% 7.9% -483.8 -22.1% -120.3 -124.1 -146.3 21.7% 17.9% -1,173.6 -1,125.9 -4.1% -277.0 -265.9 -310.1 11.9% 16.6% 1,976.8 2,303.7 16.5% 528.5 591.4 613.3 16.0% 3.7% 2,354.5 2,722.1 15.6% 621.2 699.1 728.8 17.3% 4.2% -377.7 -418.5 10.8% -92.7 -107.8 -115.6 24.7% 7.2% 19.9 33.2 66.3% 4.3 7.7 5.0 17.6% -34.7% 137.6 58.6 -57.4% 128.6 24.3 -8.8 n/a n/a 62.0 173.2 >100.0% -19.4 49.9 39.7 n/a -20.4% 10.4 15.4 48.0% 0.5 3.8 5.4 >100.0% 43.6% 173.6 182.3 5.0% 41.3 46.5 46.2 12.0% -0.5% -2,520.7 -2,578.1 2.3% -618.5 -632.4 -696.8 12.7% 10.2% -1,158.9 -1,180.3 1.9% -339.9 -265.3 -333.8 -1.8% 25.8% -540.9 -548.0 1.3% -138.9 -140.3 -134.9 -2.9% -3.9% 6.8 -7.6 n/a 6.6 -1.4 -9.5 n/a >100.0% -0.4 -25.2 >100.0% 0.3 -18.2 -6.4 n/a -64.9% -1,294.8 -158.8 -87.7% -424.7 31.3 -107.2 -74.8% n/a -278.3 -310.5 11.6% -64.6 -70.9 -67.2 4.0% -5.3% -117.7 -73.5 -37.6% -17.4 -19.4 -1.9 -89.0% -90.1% 1,368.0 2,933.4 >100.0% 289.6 847.0 651.2 >100.0% -23.1% -342.5 1,025.5 242.3 783.1 -525.2 2,408.1 >100.0% 484.8 >100.0% 1,923.4 >100.0% 53.3% -78.3 -146.3 -91.6 16.9% -37.4% 211.3 700.7 559.6 >100.0% -20.1% 65.2 167.3 146.0 533.4 87.6 472.0 >100.0% 34.3% -47.6% -11.5% 7,155.1 7,742.0 -4,220.5 -4,306.5 2,934.6 3,435.5 8.2% 2.0% 17.1% 1,869.3 1,944.3 2,007.0 -1,097.3 -1,038.0 -1,165.5 771.9 906.3 841.5 7.4% 3.2% 6.2% 12.3% 9.0% -7.2% Page 41#42Additional information: group balance sheet Assets - Quarterly data Change in EUR million Cash and cash balances Financial assets held for trading Derivatives Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 YOY-A YTD-A QOQ-A 35,839 53,954 48,421 47,125 45,495 26.9% 26.9% -3.5% 6,356 6,464 6,088 6,244 6,473 1.8% 1.8% 3.7% 2,954 2,551 2,146 2,269 2,263 -23.4% -23.4% -0.3% Other financial assets held for trading 3,402 3,912 3,942 3,975 4,210 23.8% 23.8% 5.9% Non-trading financial assets at fair value through profit and loss 3,083 3,096 3,154 3,105 3,124 1.3% 1.3% 0.6% Equity instruments 347 325 309 316 332 -4.4% -4.4% 5.0% Debt securities 2,048 2,036 1,999 1,953 1,975 -3.6% -3.6% 1.1% Loans and advances to banks 0 0 19 21 10 n/a n/a -53.0% Loans and advances to customers 687 735 827 815 808 17.6% 17.6% -0.9% Financial assets at fair value through other comprehensive income 8,519 8,547 9,181 9,074 8,881 4.3% 4.3% -2.1% Equity instruments 130 127 109 114 132 2.0% 2.0% 16.0% Debt securities 8,389 8,420 Financial assets at amortised cost 210,940 219,901 Debt securities Loans and advances to banks Loans and advances to customers Finance lease receivables 9,072 8,960 223,072 230,488 229,641 29,579 31,009 33,272 33,651 35,551 21,466 27,477 24,522 27,728 20,991 159,895 161,414 165,279 169,109 173,099 8,749 4.3% 4.3% -2.4% 8.9% 8.9% -0.4% 20.2% 20.2% 5.6% -2.2% -2.2% -24.3% 8.3% 8.3% 2.4% 4,127 4,094 4,167 4,208 4,209 2.0% 2.0% 0.0% Hedge accounting derivatives 205 149 131 94 79 -61.7% -61.7% -16.4% Fair value changes of hedged items in portfolio hedge of interest rate risk 5 I 0 -2 -4 n/a n/a >100.0% Property and equipment 2,552 2,526 2,545 2,539 2,645 3.6% 3.6% 4.2% Investment properties Intangible assets 1,280 1,312 1,370 1,367 1,344 5.0% 5.0% -1.7% 1,359 1,332 1,342 1,326 1,362 0.2% 0.2% 2.7% Investments in associates and joint ventures 190 192 195 196 211 10.9% 10.9% 7.6% Current tax assets 175 183 171 147 135 -22.6% -22.6% -8.1% Deferred tax assets 460 446 427 439 562 22.2% 22.2% 28.0% Assets held for sale 212 165 141 129 73 -65.5% -65.5% -43.6% Trade and other receivables 1,341 1,596 1,841 1,797 2,152 60.5% 60.5% 19.8% Other assets Total assets 751 1,010 1,188 962 1,045 39.2% 39.2% 8.6% 277,394 304,969 303,435 309,240 307,428 10.8% 10.8% -0.6% ERSTES Group Page 42#43Additional information: group balance sheet - Liabilities and equity in EUR million Financial liabilities held for trading Derivatives Other financial liabilities held for trading Financial liabilities at fair value through profit or loss Deposits from customers Debt securities issued Other financial liabilities Financial liabilities at amortised cost Deposits from banks Deposits from customers Debt securities issued Other financial liabilities Lease liabilities Hedge accounting derivatives Fair value changes of hedged items in portfolio hedge of interest rate risk Provisions Current tax liabilities Deferred tax liabilities Liabilities associated with assets held for sale Other liabilities Total equity Equity attributable to non-controlling interests Additional equity instruments Equity attributable to owners of the parent Subscribed capital Additional paid-in capital Retained earnings and other reserves Total liabilities and equity ERSTEŚ Group Quarterly data Change Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 ΥΟΥ-Δ YTD-A QOQ-A 2,625 2,192 2,412 2,193 2,474 -5.8% -5.8% 12.8% 2,037 1,631 1,392 1,364 1,624 -20.3% -20.3% 19.1% 588 561 1,021 829 850 44.6% 44.6% 2.5% 12,091 11,383 10,448 10,281 10,464 -13.5% -13.5% 1.8% 254 230 136 130 495 94.8% 94.8% >100.0% 11,657 10,982 10,136 9,971 9,778 -16.1% -16.1% -1.9% 180 172 235,125 262,669 24,771 35,288 190,816 205,144 206,120 176 261,691 34,643 180 267,069 191 5.9% 5.9% 6.3% 265,415 12.9% 12.9% -0.6% 35,387 31,886 28.7% 28.7% -9.9% 207,376 210,029 10.1% 10.1% 1.3% 19,020 21,535 20,107 23,534 22,352 17.5% 17.5% -5.0% 518 702 820 772 1,149 >100.0% >100.0% 48.9% 560 557 594 582 588 5.1% 5.1% 1.0% 189 191 170 230 309 64.0% 64.0% 34.6% 0 0 0 0 0 -100.0% -100.0% -99.9% 2,082 2,196 2,055 2,053 1,986 -4.6% -4.6% -3.3% 58 68 65 87 144 > 100.0% >100.0% 64.5% 20 25 28 26 19 -6.5% -6.5% -27.3% | I | 0 -100.0% -100.0% -100.0% 2,232 2,914 2,602 2,765 2,516 12.7% 12.7% -9.0% 22,410 22,771 23,371 23,954 23,513 4.9% 4.9% -1.8% 5,073 5,163 5,282 5,453 5,516 8.7% 8.7% 1.2% 2,733 2,733 2,733 2,732 2,236 -18.2% -18.2% -18.1% 14,604 14,876 15,355 15,769 15,761 7.9% 7.9% 0.0% 860 860 860 860 860 0.0% 0.0% 0.0% 1,478 1,478 1,478 1,478 1,478 0.0% 0.0% 0.0% 12,267 277,394 304,969 12,538 13,018 13,432 13,424 9.4% 9.4% -0.1% 303,435 309,240 307,428 10.8% 10.8% -0.6% Page 43#44Additional information: regulatory capital position/requirement (SREP) - Capital requirements (SREP) for 2022 slightly up on higher CCyB Erste Group Consolidated Fully loaded Erste Group Unconsolidated ECB Capital Relief Fully loaded Measures I) Fully loaded Fully loaded 2019 2020 Q4 2021 Q4 2021 YE 2022 2019 2020 Q4 2021 YE 2022 Pillar | CETI requirement Combined buffer requirement 5) Capital conservation buffer Countercyclical capital buffer 2) OSII buffer 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.91% 4.68% 4.68% 2.18% 4.90% 4.75% 4.63% 4.62% 4.83% 2.50% 2.50% 2.50% 0.00% 2.50% 2.50% 2.50% 2.50% 2.50% 0.45% 0.18% 0.18% 0.18% 0.40% 0.25% 0.13% 0.12% 0.33% 2.00% 2.00% 1.00% 1.00% 1.00% 2.00% 2.00% 1.00% 1.00% Systemic risk buffer 2.00% 2.00% 1.00% 1.00% 1.00% 2.00% 2.00% 1.00% 1.00% Pillar 2 CETI requirement 3) 1.75% 0.98% 0.98% 0.98% 0.98% 1.75% 0.98% 0.98% 0.98% Pillar 2 CETI guidance 1.00% 1.00% 1.00% 0.00% 1.00% 0.00% 0.00% 0.00% 0.00% Regulatory minimum ratios excluding P2G CETI requirement 11.16% 10.16% 10.16% 7.66% 10.38% 11.00% 10.11% 10.11% 10.31% 1.50% ATI Tier I requirement 12.66% 11.99% 11.99% 9.49% 12.21% 12.50% 11.94% 11.93% 12.14% 2.00% T2 Own funds requirement 14.66% 14.43% 14.43% 11.93% 14.65% 14.50% 14.38% 14.37% 14.58% Regulatory minimum ratios including P2G CETI requirement 12.16% 11.16% 11.16% n.a. 11.38% 11.00% 10.11% 10.11% 10.31% 1.50% ATI Tier I requirement 12.66% 12.99% 12.99% n.a. 13.21% 12.50% 11.94% 11.93% 12.14% 2.00% T2 Own funds requirement 14.66% 15.43% 15.43% n.a. 15.65% 14.50% 14.38% 14.37% 14.58% Reported CETI ratio as of December 2021 14.75% 4) 23.66% 4) • Buffer to MDA restriction as of 31 December 2021: 452bps . based on CRR II, which allows additional own funds components to be included, ADIs are at EUR 6.1bn 1. 2. 3. 4. Available distributable items (ADI) as of 31 December 21: EUR 3.5bn (post expected dividend); Following ECB's announcement related to measures in reaction to COVID-19 on 12 March 2020 and 1 July 2021, the ECB allows banks to operate temporarily below the level of capital defined by the Pillar 2 Guidance (P2G) and the Capital Conservation Buffer (CCB). However, MDA restrictions still apply in case of a combined buffer requirement breach. Planned values based on Q4 2021 exposure (Q4/21 Countercyclical buffer of 0.18% at EG Consolidated) As of end of May 2021 Art. 70b (7) ABA applies using the Pillar 2 Requirement (P2R) according to the capital stack which results in the following application: 56.25% for CET1 capital and 75% for Tier 1 capital. The overall P2R remained at 1.75% for Erste Group. In 2020 the temporary capital relief actions from ECB (published on 12 March 2020) applied. Consolidated capital ratios pursuant to IFRS on phased-in (Phl) basis. Unconsolidated capital ratios pursuant to Austrian Commercial Code (UGB). ADIS pursuant to UGB. 5. Combined buffer requirement: until Q1 2021 higher of OSII and Systemic risk buffer is considered; YE 2021 OSII and Systemic risk buffer are cumulative ERSTE Page 44 Group#45Additional information: Multiple point of entry resolution strategy - MREL compliance at Point of Entry Levels (bail-in) Ownership Structure 100% Česká spořitelna 100% Slovenská sporiteľňa Erste Group Bank AG & Savings Banks + other subs 99.9% 100%* Banca Comercială Română Erste Bank Hungary & local subsidiaries & local subsidiaries & local subsidiaries & local subsidiaries Resolution Groups 69.3%** Erste Bank Croatia & local subsidiaries Erste Group follows an MPE resolution strategy with each resolution group issuing its external MREL debt *Erste Bank Hungary: 30% held by Corvinus/Hungarian State and EBRD (15% each) with option agreement to sell stakes to Erste Group Bank AG **Erste Bank Croatia: direct stake of 59%; indirect stake through Steiermärkische Sparkasse ERSTEŚ Group Page 45#46Additional information: MREL details Austrian resolution group: MREL requirement based on RWA fulfilled MREL capacity based on TREA (RWA)* in % • 33.68% Interim MREL Target**: 30.80% from 1.1.2022 Other Senior Unsec> 1yr 8.21% NPS > 1yr 0.60% Other subordinated > 1yr 1.10% T2 4.17% AT1 2.69% 18.70% from 1.1.2022 CET1 16.91% Dec 21 Subordination Target**: • • • • Key take-aways Erste Group's setup is based on a multiple point of entry (MPE) resolution approach In Q2 2021, Erste Group Bank AG received its MREL requirement calibrated on balance sheet data as of 31 Dec 2019 and based on BRRD2 Erste Group Bank AG, as the Point of Entry of the Austrian resolution group, must comply with a MREL requirement of 30.80% of TREA (incl. CBR) and 9.92% of Leverage Ratio Exposure (LRE). In addition, the subordination requirement is set at 18.70% (incl. CBR) of TREA and 8.60% of LRE respectively. Based on the Austrian resolution group's RWAs as of Dec 2021 of approx. EUR 83bn, the current MREL ratio stands at 33.68%, thereof 25.48% being subordinated eligible liabilities. As of Q4 2021 the AT resolution group is compliant with the interim MREL and subordination requirements (TREA and LRE-based) to be fulfilled from 1 Jan 2022. Potential changes in the MREL requirement will be reflected in Erste Group Bank AG's funding plan as to ensure compliance with MREL & subordination targets * TREA... total risk exposure amount Target including the Combined Buffer Requirement (CBR) ERSTEŚ Group Page 46#47100% Additional information: gross customer loans. By risk category, by currency, by industry - Gross cust. loans by risk category (EUR bn) Gross customer loans by currency (EUR bn) Gross customer loans by industry (EUR bn) 170.0 4.5 171.8 6.3 4.5 176.1 5.84.4 179.8 F4.3= 184.2 184.2 184.2 6.1 5.3 4.4 21.9 5.6 22.2 20.3 22.9 21.7 170.0 2.7 2.7 38.6 171.8 176.1 2.3 <2.1 3.1三 3.2 2.2 2.4 2.3 179.8 ₤3.0 2.1 2.3 3.1 1.9 179.8 176.1 10.1 171.8 2.3 170.0 9.8 39.5 42.1 42.8 44.7 9.8 5.7 9.7 9.5 5.6 4.9 5.3 4.8 5.1 5.2 4.9 10.6 5.0 4.9 10.0 9.6 4.7 9.4 9.4 4.9 4.7 6.3 4.2 4.1 6.1 6.3 8.3 139.7 139.4 143.0 147.2 152.6 6.0 6.0 8.3 123.7 124.7 126.2 129.7 132.2 8.0 7.9 7.6 10.5 10.0 9.7 9.2 9.6 13.6 13.6 13.4 13.0 13.5 31/12/20 31/03/21 30/06/21 30/09/21 31/12/21 31/12/20 31/03/21 30/06/21 30/09/21 31/12/21 30.7 30.0 29.3 28.6 28.8 2.7% 2.6% Gross customer loans by risk category (in %) 11.9% 3.3% 12.6% 3.6% 13.0% 3.3% 12.4%; 3.4% 11.9% 2.9% $2.5% 2.4% 2.4% Gross customer loans by currency (in %) 1.6% 1.4% 1.8% 1.2% 1.8% 1.3% 1.7% 1.2% 1.7% 1.0% 22.7% 1.6% 23.0% 1.4% 23.9% 1.3% 23.8% 1.3% 24.3% 1.3% 72.3 73.0 75.1 76.8 78.8 82.1% 81.1% 81.2% 81.9% 82.9% 72.8% 72.6% 71.7% 72.1% 71.8% 31/12/20 31/03/21 30/06/21 30/09/21 31/12/21 31/12/20 31/03/21 30/06/21 30/09/21 31/12/21 31/12/20 31/03/21 30/06/21 30/09/21 31/12/21 Non-performing Substandard Management attention Low risk Other USD CHF CEE-LCY EUR Other Transport & comms Tourism Financial inst. Public admin Construction Manufacturing Real estate Households Services Trade ERSTEŚ Group Page 47#48Additional information: financial and trading assets* LCR at excellent 177.3% By geography - By debtor type +16.1% in EUR bn 50.9 100% 8.0% 7.5% 7.2% 43.8 43.8 25.3% 12.1 9.2% 9.1% 9.1% 64.6 10.6 10.6 0.7 5.2 0.7 0.7 3.7 3.7 5.9 6.0 6.0 6.3 82.8% 83.4% 83.6% 6.0 6.0 13.8 10.0 10.0 6.6 6.6 6.9 31/12/20 31/12/20 31/12/21 31/12/20 31/12/20 31/12/21 31/12/20 Other SK DE CZ HU AT RO * Excludes derivatives held for trading ERSTE Group Other Banks Sovereign Liquidity buffer 82.5 28.9% in EUR bn 78.6 27.7% 30/09/21 31/12/21 • • Liquidity buffer Liquidity buffer as % of total liabilities Liquidity buffer is defined as unencumbered collateral plus cash Total liabilities are defined as total on balance sheet liabilities excluding total equity Page 48#49Additional information: Ratings - Composition of Erste Group Bank AG's issuer ratings MOODY'S Macro Profile Strong + S&P Global Ratings SACP Stand-Alone Credit Profile a Fitch Ratings VR Viability Rating (Individual Rating ) a Financial Profile Asset Risk baa2 Anchor bbb+ Capital baa1 Profitability baa3 Business Position Capital & Earnings Strong +1 Adequate 0 Funding Structure Liquid Resources a2 baa1 Risk Position Adequate 0 + Funding Liquidity Above Average +1 Strong Qualitative Factors Business Diversification + 00 Support +1 Opacity, Complexity Corporate Behaviour 0 = BCA Baseline Credit Assessment baa1 ALAC Support +1 GRE Support 0 Affiliate Support 0 Group Support 0 Sovereign Support 0 = Adjusted BCA baa1 + LGF Loss Given Failure Government Support +2 0 Additional Factors = 0 SRF Support Rating Floor NF (No Floor) IDR - Issuer Default Rating Long-Term Outlook / Short-Term A Stable / F1 Senior Unsecured Long-Term Outlook / Short-Term A2 / Stable / P-1 Issuer Credit Rating Long-Term Outlook / Short-Term A+ / Stable / A-1 Status as of 16 December 2021 ERSTEŚ Group Page 49#50Additional information: shareholder structure Total number of shares: 429,800,000 By investor Erste Foundation direct Unidentified * 5.92% 12.79% Sparkassen Beteiligungs Gmbh & Co KG Identified Trading 1.09% BlackRock Inc. 5.06% Wellington 4.73% 48.21% Institutional 10.60% Savings Banks Foundation 1 1.69% Wiener Städtische 4.08% Versicherungsverein 0.83% Employees 5.00% Retail By region Unidentified * 12.79% Identified Trading ** Rest of world 1.43% 1.09% Continental Europe 13.60% Austria 30.11% 17.62% UK & Ireland 23.36% North America 1 Syndicated Savings Banks Foundations, own holdings of Savings Banks, Erste Employees Private Foundation * Unidentified institutional and retail investors Including Market Makers, Prime Brokerage, Proprietary Trading, Collateral and Stock Lending positions which are visible through custodian banklists The shareholder structure may contain rounding differences. ERSTEŚ Group Status as of 23 February 2022 Page 50#51- Additional information: segment structure - Geographical/operating and business segment view Erste Group - Geographical/operating segments Austria Central and Eastern Europe EBOE & Subsidiaries Savings Banks (AT/EBOe) (AT/SB) Other Austria (AT/OA) Czech Republic (CZ) Slovakia Romania Hungary Croatia (SK) (RO (HU) (HR) Serbia (RS) Holding Business Erste Group Immorent Erste Asset Management Intermarket Bank AG Erste Group - Business segments Other Holding ALM Holding CC Other Subsidiaries Group bookings and IC elimination Free Capital Retail Corporates Group Markets ALM & Local CC (ALM&LCC) Group Savings Banks Corporate Center Intragroup Elimination ERSTEŚ Group SME Large Corporate Commercial Real Estate Public Sector Asset/Liability Management Local Corporate Center Other Subsidiaries Group bookings Holding Corporate Center Free Capital Page 51#52• Investor relations details Erste Group Bank AG, Am Belvedere 1, 1100 Viennal E-mail: Internet: [email protected] http://www.erstegroup.com/investorrelations http://twitter.com/Erste GroupIR http://www.slideshare.net/Erste_Group Erste Group IR App for iPad, iPhone and Android http://www.erstegroup.com/de/Investoren/IR_App ERST.VI Bloomberg: EBS AV Reuters: Datastream: O:ERS ISIN: AT0000652011 Contacts Thomas Sommerauer Tel: +43 (0)5 0100 17326 Peter Makray Tel: +43 (0)5 0100 16878 Simone Pilz Tel: +43 (0)5 0100 13036 Gerald Krames Tel: +43 (0)5 0100 12751 e-mail: [email protected] e-mail: [email protected] e-mail: [email protected] e-mail: [email protected] ERSTES Group Page 52