#1Erste Group investor presentation Q3 2020 results 2 November 2020 Improving operating performance and lower risk costs - conditional dividend proposal of EUR 0.75 per share for 2019 Bernd Spalt, CEO Erste Group Stefan Dörfler, CFO Erste Group Alexandra Habeler-Drabek, CRO Erste Group ERSTE 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 topics amid Covid 19 • • • CEE Covid-19 evolution update Macroeconomic update Business update Operating trends • Asset quality and impairments . Capital trends and dividends Key takeaways and outlook • Q3 20 presentation • Executive summary • Business environment • Business performance • • Assets and liabilities Additional information • Covid-19 measures update ERSTEŚ Group Page 3#4CEE Covid-19 evolution update- - Number of positively tested persons rises across CEE, Europe • Main features of current virus spread in Central and Eastern Europe • Coronavirus has gone mainstream, reaching all sections of the population, while proliferation in spring was immaterial in Central and Eastern Europe • Testing capacities have multiplied over past weeks and months, resulting in higher detection rate • • • • (Relative) mortality continues to decline, while absolute number of deaths attributed to Covid-19 rises Hospital capacities remain intact in most countries, but load factors rise everywhere, albeit from low levels More pragmatic approach instead of full lockdown to protect economies (reducing social interaction, but keeping industry open) Summary of government measures in Central and Eastern Europe . • Austria: partial lockdown (production, retail trade and services, industry remain open), selective curfew Hungary: travel restrictions, increased mask usage, limitation of restaurant opening hours Czechia: re-introduction of temporary state of emergency and measures equivalent to lockdown, but with aim to keep industry open • Slovakia: embarking on nationwide testing exercise, selective curfew, school closures • Romania: mask usage, social distancing, school closures • Croatia: social distancing, smaller event sizes, mask usage • Serbia: stricter mask usage, shorter restaurant opening hours, limitation of event sizes ERSTEŚ Group Page 4#5Macroeconomic update (1) - CEE tackles Covid-19 challenge from a position of strength • • • • • Economy Strong labour markets Unemployment rates at historic lows in most countries at the end of 2019 Real wage growth Reduced external vulnerabilities Materially improved current account balances in all Erste CEE countries Sound government finances Manageable public debt Low interest rates Unemployment rates (in %) Banking markets Deposit overhang & excess liquidity on system level in all key markets No excesses, rather sustainable asset growth over the past years Sustainable growth opportunities Customer loans/GDP (in %) • Subsidiary banks Fully self-funded business model as opposed to parent company dependency Focus on local currency lending Historically low NPL ratios Strong market shares • High capital ratios Loan/deposit ratios (in %) 55 19 101 92 159 125 124 68 67 65 111 11 61 60 10 _ _ 92 _ _ 98 99 96 98 100 10 47 49 45 7 70 73 66 69 72 6 6 7 36 38 32 26 4 3 2 5 AT CZ SK RO HU HR RS AT CZ SK RO HU HR RS Group CZ SK RO HU HR RS 2007 2019 2007 2019 2007 2019 ERSTEŚ Group Page 15#6• Real GDP to decline 4% -9% in 2020 in Erste Group's core markets • Both exports and consumption will suffer in 2020 Macroeconomic update (2) - 2020 will see economic slump, partial rebound expected in 2021 CEE Recovery Index (0 = point of lowest activity, based on weekly indicators) 1.2 • Hardest hit industries expected to be tourism, services, transport, and retail trade 1.0 • Q2 expected to be hit hardest followed by Q3 & Q4 recovery Economic activity expected to partially rebound in 2021 0.8 Recent government measures will mainly be concentrated on retail & services 0.6 0.4 • Production expected to be less impacted In case of broad-based lockdown downward revisions very likely 0.2 • CEE Recovery Index shows the performance of various indicators compared to mid April Input factors: electricity consumption, air pollution, mobility in groceries, mobility in retail & recreation, mobility in workplace, capacity in automotive sector 0.0 • Current decline reflects recent government measures as a response to rising new Covid cases 1 March 1 May 1 July 1 Sept Source. Erste Group Research Evolution of real GDP forecasts 2020e -4.2 -4.7-4.7 -4.7 -4.6 -4.5 -5.0 -5.8 -6.0-6.2 -6.7-7.0 -6.3 -7.5 -7.5 -7.9 -9.0-9.0 ERSTEŚ Group -1.0 -2.3 -2.3 2021e 1 Nov 7.1 5.8 6.0 5.4 5.2 4.2 4.3 3.1 4.5 4.0 4.5 4.6 4.7 4.1 4.7 4.7 5.0 3.9 3.9 3.9 3.0 as of 30 April as of 31 July as of 31 Oct Page 6#7• Business update (1) — - Retail - what's happening on the ground? Diverging demand trends in Q3 20 • Continued strong demand for housing loans; customers see importance of owning real-estate • Lower demand for consumer loans, reflecting uncertainty among client base • • . Deposit volumes continue to increase, customers see Erste as a trusted partner Asset management sales volumes affected by a volatile market environment; strategic focus on long term savings plans Insurance sales with strong recovery after lockdown in Spring, solid demand from customers Monthly new sales volumes (2019 vs 2020, in EUR million) Housing loans Consumer loans 2019 2020 1,238 1,154 910 839 804 883 832 815 716 730 731 761 479 439 444 410 407 376 352 394 350 349 287 194 Customer interactions are changing due to COVID-crisis • . Branch traffic recovered strongly after lockdowns to almost pre Covid-19 levels, however decreases again in October due to the pandemic Generally higher digital activity of customers Apr May Jun Jul Aug Sep Apr May Jun Jul Aug Sep Branch traffic development since Covid-19 (in %) 100 • Digital sales peaked during lockdowns and in September; customers appreciate digital offering 90 • Cashless and mobile transactions on the rise 80 • The Covid-19 crisis proves again that Erste Group fulfills its role as critical infrastructure, but even more that advice and support both by Erste advisors and in George is highly relevant to our customers. 70 60 50 40 Pre- Apr May 20 Jun 20 Jul 20 Aug 20 Sep 20 Covid-19 - AT - CZ SK RO HU HR RS ERSTEŚ Group Page 7#8Business update (2) - Corporates - what's happening on the ground? • Clients continue to adjust • . • Loan demand is still increasing, but at a slowing pace in Q3 State guaranteed loan programmes mostly done in Austria; guaranteed volumes by comparison low in CEE Large acquisition finance facilities still in preparation, M&A has not picked up yet After strong reductions in earnings projections in Q2, we saw a stabilisation in forecasts on the lower level in Q3 at listed Corporates in CEE for 2020 and 2021 Clients continue to tap capital markets • 126 mandated transactions ytd with a total issuance volume of EUR 82 bn accompanied by Erste, mostly debt capital markets Drawdown behaviour • Ratio of drawn loan volume to overall loan and guarantee exposure has gone from 67.2% (YE19) to 70.4% (Q3 20) Core revenue slightly down • • NII increase yoy despite the negative impact from rate cuts (primarily in CZ hitting liability side), continued margin pressure Fees decline yoy (-7.3%) on the back of lower economic activity and negative SEPA regulation impact (primarily in CS and EBC) Trading & FV results below 2019, driven by CVA/ DVA valuations +9.0% Corporate loan stock development (gross, business line view, in EUR bn) +8.2% +7.1% +5.4% 55.2 56.8 57.6 50.6 52.5 53.8 55.1 58.1 YE 18 YE 19 Q1 19 Q1 20 Q2 19 Q2 20 Q3 19 Q3 20 Operating income development (business line view, in EUR m) -3.3% -2.2% -3.4% -4.4% 1,185.1 1,145.5 377.0 368.8 404.0 390.2 404.1 386.4 • SME business growth slowed • The number of active SME clients increases slower in 2020 than in 2019 (low single digit growth rate) • SME loan volume grew by 3% yoy ERSTEŚ Group 1-9 19 1-9 20 Q1 19 Q1 20 Q2 19 Q2 20 Q3 19 Q3 20 Page 8#9Understanding operating trends (1) - Low single-digit underlying net loan growth expected in 2020 . Qoq net loan growth amounted to +0.5% in Q3 (Q2 20: +1.6%) • Moratoria effect (reduced redemptions): EUR +0.5bn • • Impact of state-guaranteed loans: approx. EUR +0.8bn Currency effect: EUR -0.6bn in Q3 20 (ytd - EUR -2.0bn) Composition of net loan growth in Q3 20 (in EUR bn) • Real business growth: EUR +0.2bn . Erste Group so far supported more than 1m customers amid evolving Covid-19 situation • Stable moratoria participation trends • State guaranteed loans continue to be an Austria feature Volume-based active moratoria participation as of June 30 as of Sept 30 (in % of loans to customers) 14 14 7 7 96 4 3 Data source: EBA reporting, internal reports ERSTEŚ Group 0.8 163.7 0.5 0.6 164.5 0.2 Q2 20 Guarantees Moratoria FX-Effect Business Q3 20 Active volumes subject to key Covid-19 measures (as of 30 September, in EUR m) Opt-out 4,724 New state guaranteed loans 67 Other forbearance measure 1,188 Opt-out Moratoria 55 89 2,667 39 37 132 2,139 565 077 1,786 3,447 09 1,085 978 15 14 1,971 2,062 591 19.9 1,778 037 4-2 1,058 941 585 H Page 9#10Understanding operating trends (2) - Strong NII and fee performance in Q3 20, while costs were flat • NII improved in Q3 20, both qoq and yoy • NII continues to get accrued for moratoria loans, only PV- negative modification losses lead to negative impact on NII (EUR 5.5m in Q3 20 vs EUR 26.1m in Q2 20) . • Negative impact from rate cuts only partly mitigated by TLTRO3 Expectation is for flattish NII vs 2019 • . Fees recovered almost to prior year level, primarily driven by asset management and payment services Yoy decline mainly driven by lending business while payment services fees recovered despite negative SEPA impact (about EUR 6m in Q3 20, EUR 17m ytd); securities and asset management business still grew NII development +2.0% 3,517 3,589 +0.4% 1,188 1,168 1,192 . Fees are expected to decline in low-single digits in 2020 1-9 19 1-9 20 Q3 19 Q2 20 Q3 20 Trading & FV result continued to perform well in Q3 20, after recovery in Q2 20 and negative result in Q1 20 Fee development -2% Operating costs broadly flat yoy and qoq, as lower other 504 492 administrative expenses offset minor increases elsewhere 452 • Lower advertising/marketing expenses yoy and qoq • Lower legal and consulting costs yoy and qoq • Costs set to decline yoy -1% 240 237 213 166 174 182 Q3 19 Q2 20 Q3 20 +10% Cost/income ratio at solid 55.6% in Q3 20, driven by strong revenue and cost performance ERSTEŚ Group -27% 49 38 36 Total fees Payment services Securities & AM & brokerage fees Lending business Page 10#11Credit risk - - Risk provisions: heavy-lifting executed in Q2, lower risk costs expected in 2021 • • . • • - Total risk provisions of EUR 194.7m or 46bps in Q3 20 September review of macro forecasts did not lead to significant FLI updrift additional allocation of EUR 5.5m (Q2: EUR 300m) Significant increase in credit risk (SICR) overlays in relation to most Covid-19-affected sectors (cyclical industries, transportation, hotels and leisure), resulted in an expected credit loss (ECL) additional increase of EUR 22.3 m (Q2: EUR 90m) Ordinary course of business risk costs, driven primarily by Covid- 19 related negative corporate rating migrations, amounted to approx. EUR 167m Provisioning peak for 2020 likely in Q2 20, outlook for 2020 confirmed at 65-80bps Improved outlook for 2021, assuming no significant deterioration in macro environment Key IFRS 9 stage migration trends • • Stage 2 increased (driven by FLI update as well as SICR overlays described above) from 8.3% at YE19 to 16.7% as of Q3 20 Stage 1 declined almost by the same amount to 80.4% in Q3 20 · Stage 3 was stable at 2.2%, as reflected in the NPL ratio • • For Q4 20 slight increase in stage 3 expected, due to increased migrations to default after the end of some moratoria Comfortable coverage ratios across the stage spectrum Stage 1 and Stage 2 coverages slight increase vs YE19, while Stage 3 increased to 58.8% in Q3 20 from 56.6% at YE19 In Q4 20 maintenance of strong coverage ratios expected Risk cost development in 2020e (baseline scenario, in bps of average gross customer loans) 15 148 46 Q1 20 Q2 20 Q3 20 Risk provisions by IFRS9 stages ~65-80 2020e CLA Coverage in EUR million Dec 19 Mar 20 Jun 20 Sep 20 Sep 20 Sep 20 Stage 1 88.8% 86.5% 81.0% 80.4% 341 0.3% Stage 2 8.3% 10.7% 16.1% 16.7% 1,124 4.0% Stage 3 2.3% 2.2% 2.3% 2.2% 2,200 58.8% POCI 0.3% 0.2% 0.2% 0.2% 124 33.0% Subject to IFRS9 99.7% 99.7% 99.6% 99.6% 3,789 2.3% Not subject to IFRS 9 Gross customer loans 0.3% 0.3% 0.4% 0.4% 0 0.0% 163,417 164,268 167,369 168,276 3,789 2.3% ERSTEŚ Group Page 11#12Credit risk - - Asset quality: NPL ratio stable ytd as NPL coverage continues to build Development of NPL ratio Development of NPL coverage • in % 91.1 95.5 2.5 77.1 80.9 2.4 2.4 2.4 2019 Q1 20 Q2 20 Q3 20 . Stable NPL ratio year-to-date • No material rise in defaults (yet) due to multitude of government support measures (moratoria, guarantees, tax breaks, labour market support measures, etc) No significant regional divergences ERSTEŚ Group • 2019 Q1 20 Q2 20 Q3 20 in % NPL coverage at multi-year high of 95.5% in Sept 2020 excluding collateral • NPL coverage ratio above 100% in CEES, except Croatia (89%) NPL coverage in Austria also increased; currently at 82% Increase in Q3 2020 driven primarily by Stage 2 provisions Page 12#13Credit risk - - Gross credit exposure overview Gross credit exposure by NACE code Transport & comms Tourism Other 3% 2% Construction 5% 4% Services 5% Trade 5% EUR 288bn Sep 20 Manufacturing 7% Real estate 11% ERSTEŚ Group 14% Public admin Focus exposures (gross) Industry / Category as of Sep 20 of which Savings Banks Metals € 3.8bn € 0.8bn Households 28% Oil & gas € 2.6bn € 0.1bn Automotive € 3.6bn € 0.9bn Cyclical consumer € 4.3bn € 1.3bn products 16% Financial inst. Machinery € 4.7bn € 1.6bn Passenger transportation € 1.5bn € 0.1bn Hotels & leisure € 8.8bn € 3.5bn Comments Demand from construction industry compensated partially for lower capacities in automotive; Production has restarted, furlough schemes used to adjust, diversified client & product base More than half of exposure is with 6 major oil & gas companies in the region; most of them entail large downstream operations Car plants in our region are back to operation Car sales in China supported German premium carmakers in Q3, ST benefitting from public support schemes, slow recovery expected in the LT Mixed picture, DIY and sports retail profited while apparel & fashion is one of the hardest hit; second lock-downs are a threat Booming e-commerce as a mitigator Capacity utilization around 20-30% below pre- crisis level; impact varies significantly between sub-sectors due to the high diversity of the industry Stabilization at slightly lower level expected Segments with a strong link / dependency on tourism industry are particularly hit, a prolonged period with no return to pre-crisis level in the mid-term to be expected Hotel exposure: € 4.4bn: Summer season in our main regions was better than expected but 2020 will be below previous years Governmental support in our core regions AT and HR Page 13#14Credit risk - Further details on selected exposures Snapshot: real estate* RRE -Non-profit housing associations RRE Other RRE for rent & sale RRE Development projects Mixed portfolio 19% 19% Snapshot: consumer loans Czechia Austria Savings banks Austria EBOe* 3% 8% 24% Slovakia CRE - Office Croatia 12% CRE - Retail Romania 6% CRE - Other 12% EUR 35.9bn Sep 20 Hungary Serbia EUR 10.2bn 6% Sep 20 14% 19% 12% 26% 16% 4% . • • . • After the first wave of lockdowns footfall & recoveries in CRE - Retail recovered very fast, hence a second wave expected to have short-term effects only. So far no payment deferrals applied for due to second wave of Covid-19 Benign outlook for residential portfolio (with non-profit-housing associations AT making up 2/3 of the portfolio) Strong focus (more than 80%) on income producing projects Low risk profile: LTVS ~60%, NPE ratio 1.2% (Q2: 1.3%) Exposure focused on capitals and regional centres in CEE markets showing a positive demographic development • • Consumer loan exposure represents 13% of the total retail portfolio exposure of Erste Group 30+DPD delinquency rate at 1.13%, and 90+ DPD delinquency rate at 0.47%, both better than in June and a year ago - partially also supported by the moratoria First experience with post moratoria repayments show no material deterioration Moderate deterioration expected, to be handled by strengthened collection capacities and early preparations (pre-delinquency communication before end of moratoria, collection processes optimization). *) Business view distribution before risk transfer, includes exposure classified in various NACE categories. Mixed portfolio includes both residential and commercial assets whose rating is based on financial standing of client rather than asset type or value. ERSTES Group Page 14#15Capital position - Strong fully loaded CET1 ratio of 14.1% with additional cushion • 13.72 in % 0.55 0.25 0.28 0.06 14.15 0.52 0.26 0.12 0.30 FL CET1 target: 13.5% Reg. min CET1 10.2% (MDA threshold; P2G excluded) YE'19 A RWA SME A RWA Other Supporting Factor OCI Minorities inclusion FY'2019 H1'20 Profit Accrual for Dividend Change of 2019 Dividends accrual CET1 - other Q3'20 Main 1-9 20 capital/risk-weighted asset trends • RWA relief from early implementation of SME Supporting Factor in the amount of EUR 4.5bn • RWA Other: increase in credit RWA from business growth and market risk (-33bps) balanced with decreases in operational risk and other risks (+8bps) • • OCI positions worsening mainly due to decrease in foreign currency translation (-46bps) and the FV changes of debt and equity instruments (-6bps) Accrual of 2020 dividend EUR 0.32 per share in H1 20 (-12bps); as usual no accrual in Q3 20; final dividend announcement on 26 Feb 2021 CET1 cushion amounts to approx. 70bps at 30 Sept 2020 • • Combined cushion of Q3 20 interim profit and accrued but unpaid dividend for 2020: approx. 40bps Exclusion of YTD 20 minorities profit and deduction of minorities risk costs in the aggregate amount of approx. EUR 350m or 30bps ERSTEŚ Group Page 15#16Conclusion - Key takeaways and outlook for 2020/21 Operating environment Business performance Credit risk Capital position Profitability Risk factors to guidance • • Q3 20 key takeaways After initial Covid-19 shock, adoption of more pragmatic approaches, aiming to keep industry open Early warning signs as positive tests start to mount Authorities aiming for flexible, regional approaches NII and fees recovered well Good performance of trading/FV result Flat costs due to reduced other admin expenses Following spike in provisioning in Q2 20, reflecting macro deterioration and vulnerable industries overlays, significantly lower FLI and overlay impact in Q3 20 Asset quality remains strong, due to lack of defaults Fully loaded CET 1 ratio remained strong at 14.1%, as 50% of 2019 dividend accrual added back to capital Q3 profit not included in capital Profitability improved significantly, resulting in double- digit return on tangible equity (10.5%) • 2020/21 outlook Real GDP decline of between 4-9% expected in 2020, Q4 restrictions not yet incorporated Non-linear economic recovery in 2021 CEE-wide concerted fiscal mitigation efforts Challenged revenue outlook amid economic downturn, rate cuts & market volatility, costs to decline in 2020 Lower organic growth, protected growth (guarantees) and freezing of good portfolio through moratoria 2020e risk costs confirmed at approx. 65-80bps (of average gross customer loans) 2021e risk charge expected to be below 2020 level CET1 ratio is expected to remain strong with significant cushion in case of worse than expected economic performance CET1 target of 13.5% unchanged 2020e net result to be meaningfully lower than in 2019 Management intends to pay cash dividend both for 2019 and 2020, subject to business conditions and no regulatory or legal restrictions being in force Longer than expected duration of Covid-19 crisis Political or regulatory measures against banks Geopolitical, global economic and global health risks Economic downturn may put goodwill at risk ERSTEŚ Group Page 16#17Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update . • • Operating trends Asset quality and impairments Capital trends and dividends Key takeaways and outlook • Q3 20 presentation • Executive summary • Business environment • Business performance • • Assets and liabilities Additional information • Covid-19 measures update ERSTEŚ Group Page 17#18Executive summary - Group income statement performance QoQ net profit reconciliation (EUR m) YoY net profit reconciliation (EUR m) 58 +487.0% 0 419 87 48 343 1,223 108 ㄷ38 913 -47.9% 637 146 [87 165 Q2 20 Operating Operating Risk costs Other income expenses result Taxes on Minorities Q3 20 income 1-9 19 Operating Operating Risk costs income expenses Other result Taxes on Minorities 1-9 20 income • Q3 20 net result rose to EUR 343.3m on lower risk costs due to Covid-19 induced update of risk parameters in Q2 20 • • . Improvement in operating income driven by strong performance in fees and better NII; offsetting lower trading/FV result Taxes on income reflect better pre-tax result, while higher minorities charge is due to better performance of the savings banks • • ERSTEŚ Group Yoy net profit mainly down on substantial rise in risk costs driven by parameter updates Operating income declined mainly on trading/FV result following an exceptional performance in 1-9 19; improving NII (+2.0%) offsets weaker fees (-2.4%), while operating expenses improve slightly Other result improves on neg. one-off in RO in 1-9 19 Page 18#19Executive summary - Key income statement data Net interest income & margin Operating result & cost/income ratio 2.17% 2.09% in EUR m in EUR m -3.2% 2,233 2,163 55.5% 55.6% 805 806 2.04% 2.04% 3,517 3,589 1,168 1,192 Cost of risk in EUR m 614 1.48% 870 0.46% 195 1-9 19 1-9 20 Q2 20 Q3 20 1-9 19 1-9 20 Q2 20 Q3 20 -43 1-9 19 1-9 20 Q2 20 Q3 20 Banking levies 100 in EUR m 11.6% Reported EPS & ROE in EUR Return on tangible equity 91 33 2.78 5.5% 0.2% 9.6% 13.0% 6.0% 10.5% 00000000 17 1.37 0.02 0.81 0.2% 1-9 19 1-9 20 Q2 20 Q3 20 1-9 19 1-9 20 Q2 20 Q3 20 1-9 19 1-9 20 Q2 20 Q3 20 ERSTEŚ Group Page 19#20Executive summary - Group balance sheet performance . . YTD total asset reconciliation (EUR m) +10.7% 17,155 245,693 271,983 37. -94 2,618 4,245 2,216 31/12/19 Cash Trading, financial Loans to Net loans Intangibles Miscella- 30/09/20 banks assets neous assets Total assets up by 10.7%, mainly driven by a substantial increase in cash (+160.4%); net loans to customers increased by 2.6% Increase in cash attributable to AT (liquidity placed at central banks) mainly driven by TLTRO and to CZ (rise in cash position mirrors development in interbank and customer deposits) ERSTEŚ Group YTD equity & total liability reconciliation (EUR m) 13,293 245,693 -=424- +10.7% 271,983 961 =696- 1,325 10,983 31/12/19 Trading Bank Customer Debt Miscellaneous Equity 30/09/20 liabilities deposits deposits * securities liabilities • Total liability growth driven by a continuation of rising bank deposits (+101.2%) and customer deposits (+6.3%) Growing customer deposits result in a loan/deposit ratio of 89.0% (YE19: 92.2%) Increase in equity attributable to the issuance of AT1 instruments (+EUR 497m) in Q1 20 and an increase in retained earnings (+EUR 341m) in Q3 20 * excl. lease liabilities as of 2020 Page 20#21- Executive summary Key balance sheet data Loan/deposit & loan/TA ratio Net loans & credit RWA in EUR bn 31/12/19 30/09/20 NPL coverage ratio & NPL ratio 92.2% 89.0% +2.6% 95.5% 65.2% 60.5% 160.3 164.5 77.1% 100.4 97.7 Loan/deposit ratio Loans/total assets Net loans B3FL capital ratios Credit RWA NPL coverage B3FL capital & tangible equity¹ in EUR bn 18.5% 19.3% 16.3 16.4 12.8 13.1 13.7% 14.1% 2.5% 2.4% NPL ratio Liquidity coverage & leverage ratio² 179.4% 148.0% 6.8% 6.4% Total capital CET 1 CET 1 Tangible equity LCR LR (B3FL) 1) Based on shareholders' equity, not total equity 2) Pursuant to Delegated Act ERSTEŚ Group Page 21#22Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update . • • Operating trends Asset quality and impairments Capital trends and dividends Key takeaways and outlook • Q3 20 presentation • Executive summary . Business environment • Business performance • • Assets and liabilities Additional information • Covid-19 measures update ERSTEŚ Group Page 22#23Business environment - Recession in 2020 due to Coronavirus; partial rebound expected in 2021 Real GDP growth (in %) 2020 2021 Net export contribution* (in %) Consumer price inflation (avg, in %) Dom. demand contribution* (in %) 6.0 4.3 4.7 5.2 5.0 4.0 3.9 4.2 4.4 3.1 2.6 3.3 2.0 3.2 3.3 3.1 2.7 2.8 1.4 0.9 0.9 0.8 0.3 1.9 2.0 1.6 -1.7 1.2 1.1 -4.7 -2.8 0.8 -6.2 -6.3 -5.8 -1.3 -4.2 -1.8 -4.6 -4.5 -7.9 -9.0 -6.0 -3.3 AT CZ SK RO HU HR AT CZ SK RO HU HR AT CZ -3.0 SK RO HU HR -3.1 -2.8 0.0 ☐ AT CZ SK RO HU HR • Erste Group's markets to decline by 4-9% in 2020; rebound expected in 2021 • • Unemployment rate (avg, in %) Current account balance (% of GDP) Both exports and consumption will suffer in 2020; hardest hit industries expected to be tourism, services, transport, and retail trade Real GDP expected to rebound in 2021 as recent government measures will mainly be concentrated on retail & services; production less impacted Public debt (% of GDP) Gen gov balance (% of GDP) 9.5 2.8 2.3 8.5 88 85 88 86 8.1 7.1 7.4 1.1 75 72 0.3 5.8 5.4 61 63 5.9 4.6 4.9 4.0 -0.2 -3.0 40 41 44 47 2.6 -1.3 -1.0 -1.3 -4.3 -4.2 -1.7 -4.7 -6.0 -5.5 -2.6 -6.6 -3.4 -7.3 -8.1 -8.0 -4.1 -9.0 -8.6 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 will increase across the region in 2020 • Lower tax revenues and higher social payments will lead to rising fiscal deficits * Contribution to real GDP growth. Domestic demand contribution includes inventory change. Source: Erste Group Research, EU Commission ERSTEŚ Group Page 23 60#24Business environment - Policy rate cuts in across CEE • Austria Czech Republic Romania 3M Interbank 10YR GOV 0.11% 1.00% 4.61% 4.41% 4.21% 3.88% -0.17% 2.10% -0.91% -0.08% -0.29% 1.12% 0.58% 0.34% 1.61% -0.34% 1.02% 3.00% -0.39% -0.30% 2.34% 2.24% 1.91% -0.47% 1-9 19 1-9 20 Q2 20 Q3 20 1-9 19 1-9 20 Q2 20 Q3 20 1-9 19 1-9 20 Q2 20 Q3 20 ECB has kept its discount rate at zero & significantly increased quantitative easing as response to Coronavirus • National bank has cut the base rate in three steps by 200bps to 0.25% in March & May 2020 Central bank cut the key policy rate in three steps by 100bps to 1.50% in March, May & August 2020 Slovakia Hungary Croatia 1.57% 0.95% 0.92% 0.38% 0.43% 0.12% 2.65% 2.24% 2.23% 2.27% 0.84% -0.14% 0.68% 0.97% 0.19% 0.65% -0.34% -0.39% -0.30% 1-9 19 1-9 20 Q2 20 -0.47% Q3 20 1-9 19 1-9 20 Q2 20 Q3 20 1-9 19 1-9 20 Q2 20 Q3 20 • As part of the euro zone ECB rates and actions are applicable in SK • National bank cut the key policy rate in two steps by 30bps to 0.60% in June & July • Croatia joined ERM II in July 2020 • Central bank cut its 1w repo from 0.3% to 0.05% in March 2020 Source: Bloomberg, Reuters for SK 10Y. Annual and quarterly averages. ERSTEŚ 2020 Group Page 24#25Business environment - - CEE currencies have weakened versus the euro since Covid-19 outbreak EUR/CZK EUR/RON +2.7% -2.2% +6.4% +1.9% +0.2% +1.8% 25.7 26.4 27.1 26.5 25.4 27.1 4.74 4.83 4.84 4.84 4.79 4.87 1-9 19 1-9 20 Q2 20 Q3 20 31/12/19 30/09/20 . CZK reached its weakest level in March 2020 since 2014; benchmark rate cut in three steps from 2.25% to 0.25% in March & May 2020 EUR/HUF +7.7% +0.5% 348.1 351.6 353.4 323.0 331.2 • 1-9 19 Q2 20 Q3 20 31/12/19 30/09/20 1-9 20 RON depreciated significantly and remained close to its all time low in Q3 2020; policy rate cut by 100bps to 1.50% in March, May & August 2020 EUR/HRK +9.7% +1.6% -0.7% +1.6% 363.4 7.41 7.53 7.58 7.53 7.44 7.56 1-9 19 1-9 20 Q2 20 Q3 20 31/12/19 30/09/20 1-9 19 1-9 20 Q2 20 Q3 20 31/12/19 30/09/20 • HUF reached all time low versus the euro and remained relatively weak since then; key policy rate was cut by 30bps to 0.60% in HRK depreciated to its weakest level in April 2020 since 2016; 1w repo was cut to 0.05% in March 2020 June & July 2020 Source: Bloomberg ERSTEŚ Group Page 25#26Business environment - Stable market shares across the region Gross retail loans 30/09/19 30/06/20 30/09/20 21.9% 23.7% Gross corporate loans Retail deposits Corporate deposits AT 20.7% 20.4% 21.9% 20.5% AT 22.1% AT 21.2% AT CZ 75 23.6% 21.7% 25.5% 12.3% 23.8% CZ 20 21.1% 23.9% 21.0% 22 CZ 25.4% CZ 12.7% 25.4% 12.3% 26.2% 14.9% 28.2% 14.7% SK 26.0% SK 16.3% SK 28.4% SK 12.5% 25.8% 16.4% 28.4% 11.3% 16.6% 11.9% 14.9% 14.2% RO 17.0% RO 12.2% RO 14.7% RO 14.0% 17.2% 12.4% 14.6% 13.8% 11.7% 7.7% 9.7% 5.8% HU 11.9% HU 7.8% HU 10.5% H HU 6.8% 12.0% 7.7% 10.5% 6.6% 13.8% 19.8% 14.3% 14.7% HR 14.0% HR 21.4% HH HR 14.7% HR 17.2% 14.0% 21.6% 14.7% 17.0% 7.1% 6.2% 4.2% 6.3% RS 7.3% RS 6.8% RS 4.5% RS 6.9% 7.3% 6.7% 4.7% 7.5% • . • CZ: increasing market share in a growing market RO: increasing market shares driven mainly by mortgages SK: slightly declining market share caused by aggressive pricing by some of the smaller competitors • • • SK: increasing market shares in both Large Corporate and SME segments RO: increasing market share mainly in SME segment HR: increasing yoy market share driven by strong SME business * 30/09/2020 market share data for Austria not yet available ERSTEŚ • Continued inflows in all markets despite low interest rate environment Stable qoq market shares across the region Changes mainly due to normal quarterly volatility in corporate business SK: declining market share mainly in the large corporate segment due to pricing Page 26 Group#27Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update . • • Operating trends Asset quality and impairments Capital trends and dividends Key takeaways and outlook • Q3 20 presentation • Executive summary • Business environment • • Business performance Assets and liabilities Additional information • Covid-19 measures update ERSTEŚ Group Page 27#28Business performance: performing loan stock & growth - Performing loans continued to grow, supported by state guarantees Group AT/SB CZ -3.2% -0.4% -1.3% • 4.8% 0.6% 3.2% 1.2% 6.6% 1.8% 6.8% 156.8 163.3 164.3 33.8 AT/EBO e 34.5 34.9 45.4 47.6 48.4 14.8 AT/OA 16.4 15.8 28.4 28.6 28.3 8.3 4.1% RO 8.4 2.8% 8.7 13.7 8.0% SK 14.5 14.8 1.5% 4.5 HO 3.7% HU 4.7 4.7 -0.7% 6.3 HR 6.8 6.9 8.8% 0.8% 1.4 RS 1.7 20.0% 2.7% 1.7 0.1 Other 0.1 Not meaningful 0.1 in EUR bn • YOY 30/09/19 QoQ 30/06/20 30/09/20 Yoy development more pronounced in Corporates (+5.9%) than in Retail (+2.5%); solid contribution from Savings Banks Qoq growth dynamics slowed down both in Retail (+1.0%) and Corporates (+0.3%) Year-on-year segment trends: CZ: decline solely due to CZK depreciation; currency-adjusted solid growth of 5.1% SK: strong development in Corporates (+14.0%), mainly in Large Corporates; Retail up by 6.0% HR: growth in Corporates (+13.9%) more pronounced than in Retail (+3.1%) RS: continuation of dynamic growth Quarter-on-quarter segment trends: • AT/OA: decline mainly driven by lower short-term loans CZ: decline solely due to CZK depreciation; currency-adjusted relatively stable at +0.5% HU: decline owing to HUF depreciation (-2.5%) AT/SB: increase across most savings banks ERSTEŚ Group Page 28#29Business performance: customer deposit stock* & growth - Deposit build-up continues in Q3 20 YOY 30/09/19 QoQ 30/06/20 30/09/20 Group 172.5 182.7 184.8 • 7.1% 1.2% 36.8 AT/EBO e 39.8 10.4% 2.1% 40.6 48.0 13.2% AT/SB 53.0 2.4% 54.3 • 6.4 -14.2% AT/OA 5.2 5.3% 5.5 • 41.8 22 0.9% CZ 42.8 -1.5% 42.2 PO 11.7 6.9% RO 12.3 1.4% 12.5 SE 14.1 1.5% SK 14.4 -0.3% 14.3 6.1 HH HU 6.7 10.9% 1.5% • 6.8 7.0 HR 7.5 7.7 10.1% 3.1% 1.1 RS 1.4 1.5 145 35.6% 9.8% -0.5 Other -0.4 -0.6 Not meaningful in EUR bn • Continuation of exceptional deposit growth across most geographies despite zero/low interest rate environment as retail and corporate clients park cash in overnight accounts Yoy growth in absolute terms mainly driven by savings banks (+EUR 6.3bn) and Retail segment (+EUR 6.1bn); solid contribution from Corporates (+EUR 2.1bn) Qoq increase across most geographies Year-on-year segment trends: AT/OA: lower customer deposits in foreign branches AT/SB: increase across all savings banks HU: dynamic growth in Corporates (+24.8%) mainly driven by Group Large Corporates, Retail deposits increase by 14.0% RS: exceptional growth in Corporates (+61.8%) and in Retail (+28.2%) Quarter-on-quarter segment trends: • CZ: decline in Corporate deposits (-13.7%) due to Public Sector, Retail deposits increase slightly by 0.6% SK: reduced deposit inflow from Corporates (-10.3%) mainly driven by Group Large Corporates, Retail deposits increase by 1.2% HR: Continuation of growth both from Corporates (+3.3%) and Retail (+2.4%) * Excludes lease liabilities as of 2020 ERSTEŚ Group Page 29#30Business performance: NII and NIM NII increases yoy and qoq Group 1,188 .168 2.14% 2.04% 1,192 2.04% 165 1.57% AT/EBO e 160 1.56% 161 1.49% 265 1.75% AT/SB 265 1.69% 270 1.69% 109 1.11% AT/OA 114 1.10% 114 1.12% 285 2.02% CZ |242 255 [1.70% 1.77% 110 RO 109 108 108 SK 109 109 HO HU 515 53 49 57 HR 66 9899 69 66 2.52% 2.42% 2.40% 2.76% 2.22% 2.57% 3.14% 2.89% 68 15 RS 15 17 557 3.28% 10 Other 39 Not meaningful 32 in EUR m ERSTEŚ Group - • Q3 19 Q2 20 Q3 20 Yoy NII slightly up as improvements across most geographies, more than offset decline in CZ resulting from rate cuts and CZK depreciation Qoq increase across all geographies (except RO), mainly on higher volumes and lower modification losses 3.46% 3.35% 3.22% 2.95% 3.39% 3.06% • Year-on-year segment trends: CZ: decline in NII mainly driven by lower interest rate environment; FX impact -EUR 8.1m AT/OA: improvements in the corporate business of the Holding driven by higher customer loan volumes AT/EBOe: NII declines mainly on lower result from debt securities Quarter-on-quarter segment trends: CZ: improvement in NII on modification loss booked in Q2; FX impact: +EUR 6.4m HU: NII increases on higher volumes and on modification loss booked in Q2 AT/SB: improved NII across most savings banks, mainly on higher loan volumes Page 30#31- Business performance: operating income Stable revenues confirm solid business model Group 0.7% YOY Q3 19 QoQ Q2 20 Q3 20 Yoy development driven by improved trading and FV result and slightly better NII, offsetting minor decline in net fee and commission income (-2.4%) 1,801 1,809 0.3% 1,814 281 -0.4% AT/EBO e 282 -0.7% 280 405 3.6% AT/SB 430 -2.5% 419 184 0.4% AT/OA 238 -22.2% 185 CZ 22 389 -5.2% 343 368 178 7.3% -1.9% RO 163 7.3% 175 151 2.3% SK 151 2.3% 155 114 HG -6.0% HU 96 11.1% 107 112 -6.6% HR 97 104 7.2% RS 222 002 20 20 10.1% 11.7% 22 -32 Other -12 Not meaningful -2 in EUR m ERSTEŚ Group • Qoq improvement due to strong fee income (+8.6%) and better NII (+2.1%), while net trading and FV decline Year-on-year segment trends: CZ: operating income mainly impacted by lower NII, decline in fees due to SEPA regulation HR: decline in fee income as well as in net trading and fair value result HU: lower net trading and FV result weigh on operating income, partially offset by improved NII despite neg. FX impact on higher loan volumes Quarter-on-quarter segment trends: AT/OA: Improved net fee income (mainly on lower fee expenses) could not offset lower net trading and FV result on lower valuation results following strong Q2 CZ: improvements in all key revenue lines, fee income increases mainly on insurance and card fees HU: Rebound in operating performance driven by NII and fees Page 31#32Business performance: operating expenses - - Continued cost discipline results in lower expenses yoy Group 0.7% -0.5% 5.9% 1,015 1,003 1,008 -0.6% 0.5% 165 1.1% AT/EBO e 164 1.4% • 166 262 0.2% AT/SB 263 -0.2% 262 95 -3.7% AT/OA 86 91 186 -4.4% CZ 177 178 85 RO 81 84 72 -3.3% SK 72 -3.0% 69 52 -4.4% HU 52 -4.7% 49 HR 44 555 54 54 0.0% -0.5% 54 13 6.5% RS 15 -2.4% 14 32 Other 40 Not meaningful 39 in EUR m 776 229 3.9% YOY Q3 19 QoQ Q2 20 Q3 20 Yoy costs continue positive development; higher wages and higher IT expenses offset by lower consulting and marketing expenses Qoq minor cost increase mainly due to higher wages and depreciation Year-on-year segment trends: CZ: declining operating expenses driven by lower marketing and travel costs, offsetting higher personnel expenses resulting from higher salaries; FX impact: -EUR 5.3m AT/OA: improvement driven by lower personnel and consultancy expenses in the Holding Quarter-on-quarter segment trends: RO: operating expenses increase on IT, mainly due to the roll- out of George AT/OA: higher IT (run the bank) costs in the Holding SK: lower marketing and consultancy expenses ERSTEŚ Group Page 32#33Business performance: operating result and CIR CIR at 55.6% in Q3 20 Operating result - YoY Q3 19 QoQ Q2 20 Q3 20 786 Group 805 806 117 AT/EBO e 118 114 143 AT/SB 167 157 89 YoY &QoQ change 2.4% 0.0% -2.5% -3.7% 9.8% -5.9% 4.9% Cost/income ratio 56.3% 55.5% 55.6% 58.5% 58.1% 59.4% 64.6% 61.1% 62.5% 51.6% AT/OA 151 36.3% -38.3% 93 49.5% 203 47.8% CZ 72 -6.0% 167 51.5% 14.4% 191 48.3% RO SK HU HR RS 320905 98868% 20% 0030 645 545 758 193 47.7% -3.2% 82 49.9% 10.7% 90 48.4% 79 47.5% 80 7.4% 47.3% 7.0% 85 44.9% 45.4% 62 -7.2% 45 53.7% 29.4% 58 46.1% 48.5% 58 -12.8% 43 ☐ 55.9% 16.8% 150 51.9% 66.2% 17.1% 73.3% 50.2% 64.1% -64 Other -52 -41 TO Not meaningful Not meaningful in EUR m ERSTEŚ Group Page 33#34Business performance: risk costs (abs/rel*) - Risk cost development in line with guidance. 0 Group AT/EBO e 60 Q3 19 Q2 20 Q3 20 Yoy higher risk costs due to releases in Q3 19 and Covid-19 related allocations in Q3 20 Qoq risk cost development driven by updated risk parameters to reflect deteriorated macro outlook following Covid-19 induced crisis, mainly booked in Q2 20 and to a lesser extent in Q3 20 Ytd risk costs at 70bps Year-on-year segment trends: Higher allocations across most geographies (except RS) in the light of Covid-19 Quarter-on-quarter segment trends: 0.00% 614 195 ☐ 1.48% 0.46% 0.04% 0.68% 0.17% -0.03% AT/SB 126 1.02% 25 0.20% 0 -0.01% • AT/OA 84 2.06% 42 1.00% 0.03% CZ 112 1.54% 41 ☐ 0.57% -7 -0.33% RO 80 22 9 10.27% 52 1.41% 23 ☐ 0.61% -3 -0.31% . HU 54 4.89% 0.86% -5 -0.27% HR 41 2.25% 22 1.18% RS 06 0.09% 1.45% -1 -0.23% Other 40 Not meaningful = SK H -4 in EUR m 0.99% 3.60% • Continued assessment of forward-looking information and stage overlays in Q3 20, together with effects of portfolio migrations. Less significant allocations in Q3 due to stable macro outlook since Q2 20 RS: Release of excess allowances *) 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. ERSTEŚ Group Page 34#35Business performance: non-performing loans and NPL ratio NPL ratio stable at 2.4% 30/09/19 - 30/06/20 30/09/20 Group 4,290 4,043 2.7% • 3,983 2.4% 2.4% 470 1.4% AT/EBO e 453 1.3% NPL volume continues to decline and stood at EUR 4.0bn in Q3 20. NPL volume development driven by lower level of gross new inflows due to government support measures in the light of Covid-19 426 1.2% 1,380 2.9% AT/SB 1,280 2.6% • 1,250 2.5% 403 2.6% AT/OA 328 2.0% 315 2.0% 491 1.7% CZ 532 1.8% 542 1.9% 427 RO 400 394 4.9% 4.5% 4.4% NPL sales again at low levels at EUR 12.3m in Q3 20 (Q2 20: EUR 10.6m) Retail: EUR 6.8m (Q2 20: EUR 2.3m) Corporates: EUR 5.4m (Q4 19: EUR 8.3m) Q3 20 NPL sales mainly in the Czech Republic 460 3.3% SK 406 2.7% 393 2.6% HU PG 121 99 2.6% 2.1% 127 2.6% 503 7.3% HR 508 6.9% 499 6.7% RS 212 200 22 1.5% 19 1.2% 20 1.2% Other 17 18 FFF 378 13 in EUR m Not meaningful ERSTEŚ Group Page 35#36Business performance: allowances for loans and NPL coverage NPL coverage rises to multi-year high of 95.5% Group 107.8% 3.282 76.9% 3,662 91.1% 3,789 95.5% 303 64.5% AT/EBO e 333 73.6% 339 79.5% 892 64.6% AT/SB 948 74.2% 966 77.4% 235 61.0% AT/OA 296 95.3% 328 493 100.4% CZ 598 112.4% 624 115.1% 445 104.3% RO 469 117.4% 471 119.6% 357 SK 389 412 77.6% 95.8% 105.0% 110 91.1% HU 148 151.2% 154 122.3% 413 82.2% HH HR 427 84.1% 442 88.6% 28 RS 233 866 129.0% 36 36 187.0% 179.2% Other 69 17 811 16 Not meaningful HF in EUR m • • 30/09/19 - 30/06/20 30/09/20 NPL coverage increases yoy and qoq due to rising allowances Year-on-year segment trends: Allocations of allowances in performing portfolio in anticipation of future credit losses resulted in higher NPL coverage across all segments Quarter-on-quarter segment trends: • AT/EBOE, AT/SB, SK, HR: coverage improvement further driven by slight decrease in NPLs paired with higher loan loss allowances (mostly triggered by the continued transfer of loans to stage 2 as a result of Covid-19 related credit risk overlays and revised forward-looking information due to new macro assumptions) CZ: Increase of loan loss allowances at a faster pace than increase in NPLs resulted in higher NPL coverage HU: NPL coverage remains at a very high level despite default of one corporate customer ERSTEŚ Group Page 36#37Business performance: other result - Other result stable in the absence of major one-off effects -40 Group -43 -42 -8 AT/EBO e 9 -6 -10 AT/SB AT/OA -4 CZ -2 -5 -10 RO 27 Q3 19 Q2 20 Q3 20 Yoy and qoq other operating result remain relatively stable, minor effects across geographies • 16 • Year-on-year segment trends: AT/SB: other operating result improves on lower expenses related to IT subsidiary (neutral on group level) AT/OA: decline mainly due to non-financial assets selling gains in Q3 19 RO: realised gains of other non-financial assets Quarter-on-quarter segment trends: AT/EBOe: Q2 20 benefitted from real estate selling gains SK: improvement is due to the expiry of the obligation to pay banking levy -10 SK -17 0 -12 HU -13 HR -4 من خان RS Other -41 마 -16 ERSTEŚ Group 00 ~ in EUR m Page 37#38Business performance: net result - - Net profit rebounds qoq after Covid-19 induced rise in risk costs 25 491 Group 58 343 73 AT/EBO e 36 102 12 AT/SB 11 17 88 AT/OA 54 37 158 CZ 41 115 68 RO 3 60 47 SK 47 48 HU -14 32 34 HR [6 15 HH RS -42 Other -85 -87 5 in EUR m • • Q3 19 Q2 20 Q3 20 Yoy profitability hit by Covid-19 induced risk cost development; more than offsetting improved operating result Qoq performance driven by lower risk costs, while operating result remained stable Year-on-year segment trends: AT/EBOe: net result improves on pos. one-off tax effect due to reclassification within Austrian tax group (neutral on group level) AT/OA: higher risk costs in the Holding business weigh on the profitability CZ: net result adversely affected by higher risk costs and lower operating result Quarter-on-quarter segment trends: AT/EBOe: improvement on tax effect (see above) and lower risk costs following stage transfers and forward-looking information parameter update in Q2 20 CZ, HU: net result rises on improved operating performance and lower risk costs against the backdrop of stage overlays and forward-looking information parameters in Q2 20 Return on equity at 9.6%, following 0.2% in Q2 20, and 14.3% in Q3 19 Tangible return on equity at 10.5%, following 0.2% in Q2 20, and 16.1% in Q3 19 ERSTEŚ Group Page 38#39Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update • • Operating trends Asset quality and impairments Capital trends and dividends Key takeaways and outlook • Q3 20 presentation . • Executive summary • Business environment • Business performance • • Assets and liabilities Additional information • Covid-19 measures update ERSTEŚ Group Page 39#40- Assets and liabilities: YTD overview Loan/deposit ratio at 89.0% (Dec 19: 92.2%) Assets (EUR bn) Assets (in %) Liabilities & equity (EUR bn) Liabilities & equity (in %) 272.0 [4.4% 100% 272.0 2.8 245.7 27.8 10.2% C10.7 18.0% 245.7 13.1 5.3% 1.0% 26.4 9.7% <<<100% 1.0% 2.4 46.5 17.1% 44.3 9.4% 25.7 9.4% 23.1 65.2% 160.3 164.5 60.5% 70.8% 184.8 173.8 68.0% 30.4 29.7 12.4% 10.9% 5.4 6.8 2.2% 2.5% 1.4 6.0 6.1 1.3 -0.6% 0.5% 20.5 21.4 8.3% 7.9% 31/12/19 30/09/20 2.4% 31/12/19 2.2% 30/09/20 31/12/19 30/09/20 31/12/19 30/09/20 Cash Trading liabilities Equity Trading, financial assets Loans to banks Net loans Intangibles Miscellaneous assets Bank deposits Customer deposits Debt securities Miscellaneous liabilities ERSTES Group Page 40#41Assets and liabilities: customer loans by country of risk Net customer loans up 2.7%, NPLs down 7.0% ytd Net customer loans (EUR bn) - Performing loans (EUR bn) Non-performing loans (EUR bn) +2.7% +3.2% 160.2 163.7 164.5 163.3 164.3 159.3 5.9 [5.7] 5.9 [5.7 -3.8% [5.2 8.8 8.5 5.2. 8.5 8.8 8.5 1.9 2.1 2.1 8.4 6.8 7.3 7.2 1.9 2.1 2.2 4.1 5.4 5.3 5.3 6.7 7.1 7.1 4.0 4.0 5.4 5.4 5.3 0.1- 9.3 9.2 9.6 9.3 9.7 0.2 [0.2 0.1 9.4 0.0 0.2 0.0 0.2 0.0 14.8 15.4 15.6 14.7 15.4 15.6 0.6 0.6 0.6 0.1 0.1 28.1 28.0 27.3 28.0 28.1 27.4 0.1 0.4 0.4 0.4 0.4 0.4 0.4 0.6 0.6 0.6 80.3 81.7 83.2 79.7 81.2 82.9 1.6 1.5 1.5 31/12/19 30/06/20 30/09/20 31/12/19 30/06/20 30/09/20 31/12/19 30/06/20 30/09/20 AT CZ SK RO HU HR RS Other EU Other • • Performing loans enjoyed solid growth across most geographies, decline in CZ and HU due to FX depreciation Corporates performed better than Retail . Decline in NPL stock continued ERSTEŚ Group Page 41#42Assets and liabilities: financial and trading assets* LCR at excellent 179.4% By geography +4.0% By debtor type jn EUR bn - Liquidity buffer in EUR bn 44.3 43.0 41.4 100% 12.5% 8.7% 7.8% 25.9% 24.6% 10.7 8.4% 9.7% 10.6 23.0% 10.0 9.1% 64.8 0.7 0.8 0.6 3.6 55.5 55.9 3.4 3.6 5.6 5.8 5.7 6.2 5.2 6.2 83.0% 82.5% 78.4% 8.7 10.2 9.5 7.6 7.4 6.7 31/12/19 30/06/20 30/09/20 31/12/19 30/06/20 30/09/20 31/12/19 Other SK DE CZ HU AT RO * Excludes derivatives held for trading ERSTEŚ Group Other Banks Sovereign • . 30/06/20 30/09/20 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 42#43Assets and liabilities: customer deposit funding - Customer deposits* up 6.3% ytd, driven by households By customer type By product type in EUR bn in EUR bn • +6.3% 182.7 184.8 184.8 182.7 173.8 173.8 0.8 12.4 0.3 11.4 0.3 1.5= 0.8 4.2 0.3 [3.0:0.3 8.7 10.0 10.6 11.0 45.9 44.7 • 36.7 37.9 49.9 34.3 119.2 123.2 124.6 132.3 136.9 121.7 31/12/19 FV deposits 30/06/20 30/09/20 General governments Other financial corporations Non-financial corporations Households * excludes lease liabilities as of 2020 ERSTEŚ Group 31/12/19 30/06/20 30/09/20 FV deposits Repurchase agreements Term deposits Overnight deposits Highlights Continued deposit inflows driven by Retail segment with strong contribution from Corporate segment (esp. public sector) with highest demand for overnight deposits amid low interest rate environment Increasing share of overnight deposits with significantly longer behavioural maturity provides a cost effective funding source Page 43#44Assets and liabilities: debt vs interbank funding - - Reduced wholesale funding reliance, as customer deposits grow strongly Overnight deposits Term deposits Debt securities issued in EUR bn Interbank deposits -2.3% +101.2% 30.4 29.4 29.7 Sub debt 26.4 2.9 6.0 5.2 5.5 Senior non-preferred bonds 22.0 =0.5 Senior unsec. bonds 0.7 0.7 2.9 Certificates of deposit 8.3 8.2 8.5 Other CDs, name cert's 1.10.1 Mortgage CBs 13.1 1.1 0.0 1.1 0.0 Public sector CBs 2.0 21.9 17.4 Other 12.8 13.5 13.0 9.6 0.3 0.2 0.2 0.6 0.7 31/12/19 30/06/20 30/09/20 . Overall, relative stable development; volumes of mortgage covered bonds and senior unsecured bonds have risen ytd • ERSTEŚ Group 1.6 31/12/19 1.7 30/06/20 1.6 30/09/20 in EUR bn Repurchase agreements Significant increase in interbank deposits predominantly in term deposits; mainly driven by TLTRO3 Page 44#45Assets and liabilities: LT funding - Stable LT funding needs in 2020 Maturity profile of debt 3.6 3.0 2.7 2.4 2.1 3.2 2.7 1.4 1.2 0.9 in EUR bn 0.7 0.6 0.1 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ Senior unsec. bonds Senior non-preferred bonds Covered bonds Capital exc Tier 1 Debt CEE • • Beginning of September Erste Group concluded its 2020 funding plan with the issuance of a EUR 500mn 11NC6 T2 at MS+210bp, gathering an orderbook of EUR 2.9bn and pricing through its fair value Only two weeks later Erste Group kicked-off its 2021 pre-funding by issuing a EUR 500mn 5y senior preferred note at MS+52bp, attracting EUR 2.7bn orders good at re-offer - again with a negative new issue concession 2021 funding volume is expected to be comparable to this year's figures with a clear focus on senior preferred . TLTRO outstanding as of 30 Sept 2020: EUR 14bn ERSTEŚ Group Page 45#46- Assets and liabilities: LT funding — Targeting MPE approach • • Resolution strategy Direct presence in 7 geographically connected countries Erste Group's setup suggests a multiple point of entry (MPE) resolution strategy • When determined, MREL needs are likely to be met with a mix of own funds, senior non-preferred and senior preferred instruments Majority ownership Minority ownership ERSTEŚ Group CZ SK AT HU RO HR RS . • • • Austrian resolution group Major entities within the Austrian resolution group*: Erste Group Bank AG Erste Bank Oesterreich and its subsidiaries All other savings banks of the Haftungsverbund Subordination requirement does not seem to be a limiting factor Binding MREL targets for the Austrian, Slovak, Romanian, Hungarian and Czech resolution groups have been received; for Croatia the first binding target is expected in 2021 All CEE resolution groups with a binding decision received in 2020 will receive a transition period until year-end 2023 enabling them to reach their MREL targets gradually *) Subject to joint decision of resolution authority Page 46#47Assets and liabilities: LT funding - Expected total MREL-related issuance volume unchanged MREL resolution groups (June 2020) Preliminary 5-year issuance plan (avg. p.a.) in EUR m 163 in EUR bn 3,500-5,000 74 62 20 19 16 ~400-500- 8 8 10 7 96 ~200-300~100-300~100-300-100-150 AT CZ SK RO HR HU Holding CZ SK RO HR HU Total assets Total RWA • . Under MREL there are 6 resolution groups covered by the Single Resolution Board 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 • • CEE issuances will mainly be placed in domestic market First NPS issuances by Erste Group Bank AG (in EUR) and BCR (in RON) in 2019 and Slovenská sporiteľňa in Feb 2020 ERSTEŚ Group Page 47#48Assets and liabilities: MREL for the Austrian resolution group MREL requirement based on RWA fulfilled MREL ratio based on TREA (RWA)* 30.07% Other Senior Unsec> 1yr ---4.82% 27.49% NPS > 1yr\ -0.68% 1.12% Other subordinated > 1yr T2 4.68% 18.94% AT1 2.69% CET1 16.08% *) TREA... total risk exposure amount ERSTEŚ Group Jun 20 in % • . • • • • Key take-aways Erste Group's setup is based on a multiple point of entry (MPE) resolution approach In April 2020, Erste Group Bank AG received its MREL requirement calibrated on balance sheet data as of 31 Dec 2017 and based on BRRD1 Erste Group Bank AG, as the Point of Entry of the Austrian resolution group, must comply with a MREL requirement of 14.90% of TLOF and a subordination requirement of 10.27%, which equals RWAs of 27.49% and 18.94% for the subordination requirement based on BRRD1 Based on the Austrian resolution group's RWAs as of June 2020 of approx. EUR 74bn, the current MREL ratio stands at 30.07%, thereof 25.25% being subordinated eligible liabilities. Both ratios are well above the minimum requirements A new MREL requirement based on SRB's 2020 MREL policy and BRRD2 is expected in H1 2021 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 Page 48#49Assets and liabilities: capital position - CET1 ratio at a strong 14.1%, phased-in at 14.2% Basel 3 capital Risk-weighted assets in EUR bn Basel 3 capital ratios in EUR bn 21.5 22.0 22.0 22.4 121.4 118.6 120.5 21.3 115.3 116.1 3.2 =2.8 3.4 3.3 3.3 4.1 4.2 3.6 3.9 14.3 14.9 14.7 3.5 14.5 14.6 [1.5] [1.5] 2.0 2.0 2.0 103.9 100.8 102.4 97.5 98.2 15.9 16.3 15.8 16.4 16.4 30/09/19 31/12/19 31/03/20 30/06/20 30/09/20 30/09/19 31/12/19 31/03/20 30/06/20 30/09/20 Tier 2 AT1 CET1 Market risk Op risk Credit RWA • CET1 capital improves by EUR 164m ytd mainly on: • YTD credit RWA development mainly on: • • SME support factor: ca. -EUR 4.5bn • . • Retained earnings (50% of 2019 dividend accrued added back to capital): +EUR 347m Minority interest: +EUR 353m OCI and prudential filter impact (mainly on FX impact): -EUR 618m Non-inclusion of Q3 20 interim profit AT1 issuance in Q1 20: +EUR 497m • Business growth: ca. + EUR 4.9bn • • FX depreciation: ca. -EUR 1.4bn • Rise in market risk due to increased volatility • ERSTEŚ Group 13.1% 14.3% 17.7% 13.7% 15.0% 18.5% 13.1% 14.8% 17.7% 14.2% 15.9% 19.1% 14.1% 15.9% 30/09/19 31/12/19 31/03/20 30/06/20 30/09/20 CET1 Tier 1 Total capital CET1 ratio benefits from SME support factor: +55bps FX impact: -30bps Dividend accrual for H1 2020 included in capital ratios Medium-term target remains unchanged at 13.5% Page 49 19.3%#50Presentation topics • Addressing the key questions in an uncertain environment • CEE Covid-19 evolution update • Macroeconomic update • Business update . • • Operating trends Asset quality and impairments Capital trends and dividends Key takeaways and outlook • Q3 20 presentation • • • Executive summary Business environment ⚫ Business performance • • Assets and liabilities Additional information • Covid-19 measures update ERSTEŚ Group Page 50#51Additional information: segment structure Business line and geographic view - Erste Group Business segments - Retail Corporates Group Markets ALM & Local CC (ALM&LCC) Group Savings Banks Intragroup Corporate Center Elimination SME Large Corporate Commercial Real Estate Public Sector Austria Asset/Liability Management Local Corporate Center Erste Group - Geographical segmentation Central and Eastern Europe Other Subsidiaries Group bookings Holding Corporate Center Free Capital Other EBOE & Subsidiaries (AT/EBOe) Savings Banks (AT/SB) Other Austria (AT/OA) Czech Republic (CZ) Slovakia (SK) Romania Hungary (RO (HU) Croatia Serbia Holding ALM Holding CC (HR) (RS) ERSTEŚ Group Holding Business Erste Group Immorent Erste Asset Management Intermarket Bank AG Other Subsidiaries Group bookings and IC elimination Free Capital Page 51#52Additional information: income statement - Year-to-date and quarterly view Year-to-date view 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 1-9 19 1-9 20 YOY-A Q3 19 Q2 20 Q3 20 YOY-A QOQ-A 3,517.4 3,589.3 2.0% 1,187.7 1,167.9 1,192.4 0.4% 2.1% 4,139.4 3,882.9 -6.2% 1,397.4 1,253.5 1,237.7 -11.4% -1.3% 1,231.5 1,103.9 -10.4% 392.0 364.2 344.6 -12.1% -5.4% -817.8 -501.0 -38.7% -262.9 -147.9 -122.1 -53.5% -17.4% -1,035.7 -896.6 -13.4% -338.8 -302.0 -267.8 -21.0% -11.3% 1,484.3 1,448.3 -2.4% 503.9 452.5 491.6 -2.4% 8.6% 1,805.8 1,733.3 -4.0% 616.8 541.4 587.3 -4.8% 8.5% -321.5 -285.0 -11.4% -113.0 -88.9 -95.7 -15.3% 7.6% 24.0 15.7 -34.8% 5.1 13.3 0.9 -82.8% -93.4% 419.3 9.0 -97.9% 109.2 138.2 28.2 -74.2% -79.6% -189.4 81.4 n/a -49.2 -8.9 52.9 n/a n/a 10.1 9.9 -1.6% 3.1 2.6 4.0 32.4% 56.3% 128.4 132.3 3.0% 41.5 43.5 44.0 6.1% 1.3% -1,887.2 -1,902.2 0.8% -631.3 -635.5 -636.7 0.9% 0.2% Other administrative expenses -879.3 -819.0 -6.9% -253.8 -238.6 -235.6 -7.1% -1.2% Depreciation and amortisation -394.4 -402.0 1.9% -129.8 -129.4 -136.1 4.8% 5.2% Gains/losses from derecognition of financial assets measured at amortised cost -0.4 0.2 n/a -1.3 -0.1 -0.1 -90.6% 8.9% Other gains/losses from derecognition of financial instruments not measured at fair value through profit or loss Impairment result from financial instruments 18.0 -0.7 n/a 7.9 -0.5 1.4 -81.8% n/a 42.9 -870.1 n/a 0.1 -613.7 -194.7 n/a -68.3% 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 -397.2 -213.6 -46.2% -46.2 -42.3 -43.8 -5.3% 3.5% -90.9 -100.3 10.4% -26.2 -33.1 -17.3 -33.8% -47.6% 1,896.6 1,078.4 -43.1% 746.8 148.8 568.3 -23.9% >100.0% -350.9 -264.2 -24.7% -138.2 -37.3 -123.9 -10.3% > 100.0% 1,545.7 814.2 -47.3% 608.6 111.5 444.4 -27.0% > 100.0% 322.7 1,223.0 177.1 -45.1% 117.6 53.0 101.0 -14.0% 90.5% 637.1 -47.9% 491.1 58.5 343.3 -30.1% > 100.0% Operating income Operating expenses Operating result ERSTEŚ Group 5,394.1 5,285.8 -3,160.8 -3,123.2 -2.0% -1.2% 2,233.3 2,162.7 -3.2% 786.4 1,801.2 1,808.9 -1,014.9 -1,003.5 805.4 1,814.0 -1,008.5 805.5 0.7% 0.3% -0.6% 0.5% 2.4% 0.0% Page 52#53Additional information: group balance sheet - Assets in EUR million Cash and cash balances Financial assets held for trading Derivatives Other financial assets held for trading Non-trading financial assets at fair value through profit and loss Equity instruments Debt securities Loans and advances to banks Sep 19 Dec 19 Quarterly data Mar 20 Change Jun 20 Sep 20 YOY-A YTD-A QOQ-A 15,638 10,693 23,031 18,433 27,848 78.1% > 100.0% 51.1% 7,215 5,760 7,706 6,984 6,764 -6.3% 17.4% -3.2% 3,551 2,805 4,034 3,233 3,369 -5.1% 20.1% 4.2% 3,664 2,954 3,672 3,752 3,394 -7.4% 14.9% -9.5% 3,350 3,208 3,130 3,122 3,157 -5.8% -1.6% 1.1% 393 390 361 374 395 0.6% 1.2% 5.5% 2,539 2,335 2,250 2,129 2,124 -16.3% -9.0% -0.2% 0 0 0 0 0 n/a n/a n/a Loans and advances to customers 419 483 519 619 638 52.4% 31.9% 3.0% Financial assets at fair value through other comprehensive income 8,940 9,047 8,953 8,883 8,578 -4.0% -5.2% -3.4% Equity instruments 312 210 139 132 Debt securities 8,629 8,836 8,815 Financial assets at amortised cost 204,079 Debt securities Loans and advances to banks Loans and advances to customers Finance lease receivables Hedge accounting derivatives Property and equipment 26,808 26,764 204,162 207,133 27,700 8,750 214,464 212,824 136 8,442 -56.3% -35.2% 3.1% -2.2% -4.5% -3.5% 4.3% 4.2% -0.8% 29,298 28,649 6.9% 7.0% -2.2% 25,241 152,030 3,987 23,055 24,264 27,418 25,672 1.7% 11.4% -6.4% 154,344 155,168 157,749 158,502 4.3% 2.7% 0.5% 4,034 4,040 4,082 4,118 3.3% 2.1% 0.9% 182 130 226 270 254 39.7% 95.2% -5.9% 2,509 2,629 2,558 2,526 2,496 -0.5% -5.1% -1.2% Investment properties 1,226 1,266 1,254 1,257 1,245 1.5% -1.7% -1.0% Intangible assets 1,491 1,368 1,322 1,331 1,331 -10.7% -2.7% 0.0% Investments in associates and joint ventures 202 163 163 166 170 -15.6% 4.5% 2.4% Current tax assets 80 81 80 135 151 87.8% 86.6% 11.8% Deferred tax assets 436 477 453 467 454 4.2% -4.9% -2.9% Assets held for sale 242 269 265 260 209 -13.9% -22.3% -19.8% Trade and other receivables 1,405 1,408 1,391 1,287 1,256 -10.6% -10.8% -2.4% Other assets Total assets 1,119 1,001 1,191 1,019 1,123 0.4% 12.2% 10.2% 252,101 245,693 262,898 264,692 271,983 7.9% 10.7% 2.8% ERSTEŚ Group Page 53#54Additional 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 Sep 19 2,751 Dec 19 Quarterly data Mar 20 Change Jun 20 Sep 20 YOY-A YTD-A QOQ-A 2,421 3,322 2,737 2,845 3.4% 17.5% 4.0% 2,411 2,005 2,945 2,308 2,253 -6.5% 12.3% -2.4% 341 416 377 429 592 73.9% 42.5% 38.0% 14,550 277 13,494 265 12,591 12,607 12,334 -15.2% -8.6% -2.2% 13,754 520 208,728 19,936 171,831 13,011 219 204,143 13,141 173,066 181,439 252 12,128 211 219,988 20,703 295 279 0.7% 5.2% -5.5% 12,136 177 222,321 21,984 11,878 -13.6% -8.7% -2.1% 178 -65.8% -18.8% 0.8% 229,525 10.0% 12.4% 3.2% 26,433 32.6% >100.0% 20.2% 182,376 184,551 7.4% 6.6% 1.2% 16,350 17,360 17,285 17,295 17,797 8.9% 2.5% 2.9% 611 576 560 666 743 21.7% 29.0% 11.5% 403 515 520 521 516 28.1% 0.2% -0.9% 291 269 207 209 209 -28.0% -22.2% 0.3% 0 0 0 0 0 25.4% >100.0% -20.2% 2,001 1,919 2,046 2,033 2,008 0.4% 4.7% -1.2% 89 61 94 62 67 -24.2% 10.8% 8.5% 24 18 24 17 31 28.5% 73.9% 85.6% 7 6 7 7 3 -65.0% -59.4% -66.0% 3,128 2,369 3,045 2,978 3,006 -3.9% 26.9% 0.9% 20,130 20,477 21,053 21,200 21,438 6.5% 4.7% 1.1% 4,735 4,857 4,875 4,922 5,024 6.1% 3.4% 2.1% 1,490 1,490 1,987 1,987 1,987 33.4% 33.4% 0.0% 13,904 14,129 14,190 14,291 14,427 3.8% 2.1% 1.0% 860 860 860 860 860 0.0% 0.0% 0.0% 1,477 1,478 11,568 252,101 1,478 1,478 11,792 11,853 11,953 245,693 262,898 264,692 271,983 1,478 0.1% 0.0% 0.0% 12,090 4.5% 2.5% 1.1% 7.9% 10.7% 2.8% Page 54#55Additional information: regulatory capital position/requirement (SREP) - Capital requirements (SREP) for 2020; Erste Group target of 13.5% unchanged . Combined impact of reduced countercyclical buffers results in expected 18 bps at year-end 2020 Erste Group Unconsolidated Erste Group Consolidated Phased-in Fully loaded ECB Capital Relief Measures I) Fully loaded Phased-in Fully loaded 2018 2019 Q3 2020 Q3 2020 YE 2020 2018 2019 Q3 2020 YE 2020 Pillar | CETI requirement Combined buffer requirement 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 3.19% 4.91% 4.68% 2.18% 4.68% 3.07% 4.75% 4.63% 4.63% Capital conservation buffer 1.88% 2.50% 2.50% 0.00% 2.50% 1.88% 2.50% 2.50% 2.50% Countercyclical capital buffer 2) 0.31% 0.41% 0.18% 0.18% 0.18% 0.20% 0.25% 0.13% 0.13% OSII/Systemic risk buffer 1.00% 2.00% 2.00% 2.00% 2.00% 1.00% 2.00% 2.00% 2.00% Pillar 2 CETI requirement 3) 1.75% 1.75% 0.98% 0.98% 0.98% 1.75% 1.75% 0.98% 0.98% Pillar 2 CETI guidance 1.05% 1.00% 1.00% 0.00% 1.00% 0.00% 0.00% 0.00% 0.00% Regulatory minimum ratios excluding P2G CETI requirement 9.44% 11.16% 10.16% 7.66% 10.16% 9.32% 11.00% 10.12% 10.12% 1.50% ATI Tier I requirement 10.94% 12.66% 11.99% 9.49% 11.99% 10.82% 12.50% 11.95% 11.95% 2.00% T2 Own funds requirement 12.94% 14.66% 14.43% 11.93% 14.43% 12.82% 14.50% 14.38% 14.38% Regulatory minimum ratios including P2G CETI requirement 10.49% 12.16% 11.16% n.a. 11.16% 9.32% 11.00% 10.12% 10.12% 1.50% ATI Tier I requirement 10.94% 12.66% 2.00% T2 Own funds requirement 12.94% 14.66% 12.99% 15.43% n.a. 12.99% 10.82% 12.50% 11.95% 11.95% n.a. 15.43% 12.82% 14.50% 14.38% 14.38% Reported CETI ratio as of September 2020 14.21% 4) 21,75% 5) . Buffer to MDA restriction as of 30 Sep: 394bps Available distributable items (ADI) as of 30 Sep 20: EUR 2.7bn (post 2019 dividend and AT1 coupon; based on CRR II, which allows additional own funds components to be included, ADIs are at EUR 5.2bn) 1) Following ECB's announcement re. measures in reaction to COVID-19 on 12 March 2020. (MDA restrictions still apply in case of a combined buffer requirement breach). 2) Planned values based on Q3 2020 exposure (Q3 20 countercyclical buffer of 0.18% for Erste Group consolidated) 3) As of 12 March 2020 ECB brought forward measures for the use of the P2R re. capital stack (56.25% for CET1 capital and 75% for Tier 1 capital. The overall P2R remained at 1.75% for Erste Group 4) Consolidated capital ratios pursuant to IFRS. Unconsolidated capital ratios pursuant to Austrian Commercial Code (UGB) and on phased-in basis. ADIs pursuant to UGB. 5) Unconsolidated CET1 ratio based on Q2 20 figures ERSTEŚ Group Page 55#56Capital position - Erste Group applies regulatory quick fixes conservatively Quick Fix SME Supporting Factor Sovereigns in EU currency (STD approach) Sovereigns in EU currency (IRB approach) Software Applied by Erste Group From Phased-in/ Fully loaded Estimated impact on CET1 ratio* Q2 20 Fully loaded +55 bps Q2 20 Phased-in +12 bps Q4 20 Phased-in in the course of 2021 Fully loaded +15 bps Comment Regulator pulled forward permanent introduction from 2021 to Q2 20 Internal analysis currently ongoing and up to +20-25 bps decision on the application will be taken in the course of 2021 Retail loans backed by pensions Leverage ratio and H121 Fully-loaded No impact exclusion of central banks ✓ +46 bps on leverage Q2 20 Phased-in ratio FVTOCI debt securities ✓ Q2 20 Phased-in IFRS9 provisions for expected credit losses ✓ Q2 20 Phased-in Impact calculation not yet available (ECL) Impact calculation based on Q3 20 RWA ERSTEŚ Group Erste Group boasts strong leverage ratio (>6%), hence no need for application +1 bp Immaterial impact, hence no application Erste Group adopted fully loaded IFRS9 approach right from inception in 2019 Page 56#57Additional 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) 161.1 163.4 4.3 15.5 4.9 +4.1 164.3 5.3 3.9 16.1 5.3 20.1 167.4 168.3 161.1 163.4 4.0= 19.2 5.7 5.6 4.0 2.5 3.3 19.9 3.2 52 3.22.6 2.9 164.3 3.5 2.5 167.4 3.4 2.5 168.3 3.02.3 167.4 168.3 163.4 164.3 161.1 9.7 9.8 3.2 3.0 2.9 36.0 37.1 35.6 36.7 37.2 9.5 9.7 9.5 4.7 4.9 4.7 4.7 4.7 4.8 4.6 4.4 4.5 4.3 9.6 9.8 9.8 9.8 9.9 4.7 4.4 4.0 4.8 4.1 6.4 5.9 5.7 5.9 7.2 19 6.0 7.5 136.4 137.9 134.9 138.4 138.8 7.3 7.4 116.1 117.6 119.4 121.8 122.9 7.4 9.4 9.3 9.2 9.5 9.2 13.5 13.3 12.6 13.1 12.8 30/09/19 31/12/19 31/03/20 30/06/20 30/09/20 30/09/19 31/12/19 31/03/20 30/06/20 30/09/20 26.4 27.6 27.8 25.6 26.6 Gross customer loans by risk category (in %) Gross customer loans by currency (in %) 2.0% 1.5% 1.8% 1.4% 1.9% 22.0% 1.8% 22.1% 1.7% 100% 9.6% 2.7% 3.0% 9.8% 2.5% 2.4% 3.3% 12.3% 3.2% 11.5% 2.4% 3.4% 11.8% 3.4% 2.4% 2.1% 1.5% 2.0% 1.6% 22.3% 2.0% 22.7% 1.8% 21.7% 2.1% 1.5% 67.8 69.4 68.6 69.8 70.8 84.7% 84.4% 82.1% 82.7% 82.5% 72.1% 72.0% 72.7% 72.8% 73.1% 30/09/19 31/12/19 31/03/20 30/06/20 30/09/20 30/09/19 31/12/19 31/03/20 30/06/20 30/09/20 Non-performing Substandard Management attention 30/09/19 31/12/19 31/03/20 30/06/20 30/09/20 Other USD CHF CEE-LCY EUR Low risk Other Transport & comms Tourism Services Financial inst. Public admin Construction Manufacturing Real estate Households Trade ERSTEŚ Group Page 57#58Additional information: footprint - Customer banking in Austria and the eastern part of the EU Erste Group footprint Czech Republic Customers: 4.5m Employees: 9,914 Branches: 446 Slovakia Customers: 2.2m Employees: 3,795 Branches: 216 • Highlights Leading retail and corporate bank in 7 geographically connected countries CZ SK AT Majority ownership Minority ownership ERSTEŚ Group HU HR RS Austria RO Croatia Customers: 3.8m Employees: 16,142 Branches: 858 Customers 1.3m Employees 3,292 Branches: 141 Hungary Customers: 0.9m Employees: 3,234 Branches: 108 Romania Customers: 2.9m Employees: 5,749 Branches: 371 • Favourable mix of mature & emerging markets with low penetration rates Potential for cross selling and organic growth in CEE Serbia Customers: 0.5m Employees: 1,196 Branches: 88 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) Page 58#59Additional information: strategy. - A real customer need is the reason for all business Customer banking in Central and Eastern Europe Eastern part of EU Retail banking Corporate banking I Focus on CEE, limited exposure to other Europe Capital markets Public sector Interbank business Focus on local currency mortgage and consumer loans funded by local deposits FX loans (in EUR) only where funded by local FX deposits (Croatia and Serbia) Savings products, asset management and pension products Expansion of digital banking offering SME and local corporate banking Advisory services, with focus on providing access to capital markets and corporate finance Real estate business that goes beyond financing Focus on customer business, incl. customer- based trading activities In addition to core markets, presences in Poland, Germany, London, 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 59#60Additional information: Ratings - Composition of Erste Group Bank AG's issuer ratings MOODY'S Macro Profile Strong Financial Profile S&P Global Ratings SACP Stand-Alone Credit Profile a Fitch Ratings VR Viability Rating (Individual Rating ) a- Asset Risk Capital Profitability Funding Structure Liquid Resources + baa2 Anchor bbb+ baa1 baa3 a3 Business Position Capital & Earnings Risk Position Strong +1 Adequate 0 Adequate 0 - SRF Support Rating Floor baa1 Funding Above Average +1 Liquidity Strong Qualitative Factors NF (No Floor) + Business Diversification 0 Opacity, Complexity 0 Support 0 Corporate Behaviour 0 = BCA Baseline Credit Assessment baa1 ALAC Support 0 GRE Support 0 Affiliate Support Group Support 0 IDR Issuer Default Rating Long-Term Outlook / Short-Term A RWN* / F1 0 Sovereign Support 0 = Adjusted BCA baa1 + + Additional Factors 0 LGF Loss Given Failure +2 Government Support 0 = = Senior Unsecured Long-Term Outlook / Short-Term A2 Stable / P-1 Rating Watch Negative ERSTEŚ Group Issuer Credit Rating Long-Term Outlook / Short-Term A Stable A-1 Status as of 29 October 2020 Page 60#61Additional information: ESG ratings, indices and alignment with UN SDGs 20 VONIX1 INDEX MEMBER FTSE4Good EURONEXT 0 vigeqiris INDICES EUROZONE 120 2020 Bloomberg Gender-Equality Index Corporate ESG Performance RATED BY ISS ESG> Prime imug SUSTAINABILITY RATING RATING 2018 POSITIVE B MSCI ESG RATINGS ESG Indices and Ratings Erste Group has been included in the Vienna Stock Exchange's sustainability index since its launch in 2008 Included since 2016: The FTSE4Good Index Series measures the performance of companies with strong environmental, social and governance (ESG) practices Since 2017 included in the Euronext Vigeo Index: Eurozone 120 Included since 2019 in the Bloomberg Gender-Equality Index. Erste Group is the only Austrian company represented in this index (as of 2020). Erste Group was awarded prime status in ISS ESG ratings in October 2018. In March 2020, imug Investment Research confirmed the rating for Erste Group at positive (B), mortgage covered bonds are currently rated positive (BB) and raised the public sector covered bonds rating to very positive (A). AA Erste Group was upgraded to AA in July 2019 and is considered a leader among approx. 200 companies in the banking industry. UN Sustainable Development Goals In principle, Erste Group supports all SDGs. Given its regional footprint and business model, Erste Group is in fact able to make notable contributions to the achievement of the below-mentioned SDGs: 1 POVERTY 3 GOOD HEALTH AND WELL-BEING W QUALITY AEDUCATION 5 NDER EQUALITY DECENT WORK AND ECONOMIC GROWTH 10 INEQUALITIES REDUCED SUSTAINABLE CITIES 11 CONTES 13 CLIMATE ACTION 16 PEACE, JUSTICE AND STRONG INSTITUTIONS 17 FOR THE GOALS PARTNERSHIPS • • • • • . • Since its foundation 200 years ago, Erste Group's purpose has been to promote and secure prosperity. Erste Group values responsibility, respect and sustainability. Financial literacy is key to economic prosperity. Therefore, Erste Group offers a variety of financial literacy trainings. Erste Group respects and promotes work-life balance among its employees and also contributes to their good health. Diversity and equal opportunity are key elements of Erste Group's human resource strategy. For Erste Group social and/or ecological criteria are as important as economic criteria in its investment decision process. Erste Group has launched social banking initiatives aiming at the financial inclusion of those parts of the population that are often excluded. Erste Group contributes to the cultural and social development of society. Erste Group aims at protecting the environment by minimising its ecological footprint, in particular with its consumption of energy and paper. Erste Group cooperates with national and international organisations and it promotes corporate volunteering. ссс B BB BBB A AA AAA ERSTES Group Page 61#62Additional information: shareholder structure Total number of shares: 429,800,000 By investor Unidentified * Erste Foundation 1 Identified Trading ** 9.44% 11.41% BlackRock Inc. 2.02% 4.05% 48.45% Institutional 6.89% Savings Banks & Savings Banks Foundations 2 Other Syndicated 3 3.08% By region Unidentified * Identified Trading Rest of world ** 9.44% 2.02% 3.17% 9.92% Caixa Continental 24.57% Europe 0.74% 4.00% Employees Retail 1 Economic interest Erste Foundation, including Erste Employees Private Foundation 2 Economic interest Savings Banks & Savings Banks Foundations 3 Other parties to the shareholder agreement of Erste Foundation, Savings Banks and CaixaBank * Unidentified institutional and retail investors 16.41% UK & Ireland Austria 27.83% 16.56% North America ** Including Market Makers, Prime Brokerage, Proprietary Trading, Collateral and Stock Lending positions which are visible through custodian banklists Status as of 30 September 2020 ERSTEŚ Group Page 62#63The monetary policy reaction - A combination of rate cuts and quantitative easing Type of measures ECB (as part of the euro zone, actions applicable in AT & SK) cut its key rate to 0% in 2016; cut the deposit rate by 10 bps to -0.5% in 2019 ECB lowered financing costs for banks (TLTRO 3, PELTRO) In addition to the EUR 20bn monthly purchases (+120bn by eoy), the ECB introduced the Pandemic Emergency Purchasing Programmme in the amount of EUR 1,350bn, providing flexibility for asset purchases over time, issuers and asset classes CNB cut its key rate in three steps by 200bps to 0.25% in H1 2020 QE included in law, but has not yet been launched; only temporary measures expected MNB cut its key policy rate in two steps to 0.60% in June & July 2020 MNB raised the 1-week deposit interest rate by 15bps to 0.75% in September 2020 MNB confirmed that QE will be extended from the EUR 1.2bn programme NBR cut its key rate in three steps by 100bps to 1.50%; narrowed facility corridor to ±50bps (from ±100bps) NBR has purchased RON denominated Romanian government bonds in secondary market • ERSTEŚ HNB lowered 1Y and 5Y repo rates to 0.05% and 0.25% respectively HNB has introduced QE with a direct bond purchases close to HRK 20bn - approx. 5% of GDP CNB secured swap line with ECB in the size of EUR 2bn Croatia joined the ERM II on July 10th - central parity set at 7.5345 - ECB took over banking sector supervision from October 2020 NBS cut the key rate from 2.25% to 1.25% (50bps in 1Q20 and another 50bps in 2Q20); deposit facility rate at 0.75%, lending at 2.75% NBS supported liquidity of the banking system through repo and FX swap auctions; typical QE has not been introduced NBS might accept corporate bonds as collateral in monetary operations, with possibility of purchases on the secondary market NBS offers remuneration of 10+50bps paid on obligatory reserve to lenders who cut lending rates by 50bps in government guarantee scheme Page 63 Group#64The regulatory reaction - Pragmatism paired with dividend restrictions Type of measures • ECB has extended its recommendation for banks not to pay dividend and not to buy back shares until December 2021 Recalibration of SRB and OSII buffers to 1% will become effective in December 2020 Financial market Stability Board recommends to leave the countercyclical capital buffer at a rate of 0% Gradually reduced countercyclical capital buffer from 1.75% to 0.50% Restriction on dividend payment Relaxed limits on LTV; dropped limit on DSTI and DTI Loosened capital and liquidity requirements by ECB NBS reduced countercyclical capital buffer from 1.5% to 1.00% (as of August 2020) Recommendation to refrain from dividend payment Minimum reserve requirement eliminated Restriction on dividend payments extended until January 2021 Derogations from DTI & LTV limits and maximum tenor allowed for consumer loans amended under public moratorium Flexibility regarding temporary usage of liquidity and capital buffers; recommendation against dividend payment Loans amended under public and private moratoria will not be treated as forborne Reduced mandatory reserve requirement from 12% to 9% LCR requirement eased Restriction on dividend payments Restriction on dividend payments until YE 2020 Countercyclical buffer kept unchanged at 0% ERSTEŚ Group Page 64#65The political/fiscal reaction - Lockdowns followed by fiscal support measures across CEE Loan moratoria/payment holidays Loan guarantees, bridge loans Labour market support (eg short-time work schemes) Tax incentives (Cuts, holidays, deferrals) Direct payments COVID-19 measures (% of GDP) * Hungary: COVID-19 data as % of GDP includes Central Bank measures ERSTEŚ Group 13% 14% 7% 18%* 5% 11% 12% Page 65#66The political/fiscal reaction - Details on moratoria Main characteristics Opt-in / Opt-out Retail / Corporate Period Partici- pation Extended to 10 Statutory Retail Opt-in Interest charged during deferral period & paid after the moratoria Micro months (until January 2021) Retail: 5% Corp: 2% Statutory Interest charged during deferral period Rate cap at 2w repo + 8pp Retail Opt-in Corp. 3 to 6 months (until October 2020) Retail: 6% Corp: 8% Retail Statutory Opt-in Micro Interest charged during deferral period & paid after the moratoria SME Up to 9 months (up to duration of crisis situation) Retail: 12% Corp: 19% Statutory Interest cannot be charged on unpaid interest (monthly instalment cannot increase after moratoria & maturity will be extended) Statutory Interest capitalised & paid over the life of the contract (except mortgage for which interest will be accumulated & paid in 5 years) Opt-out Opt-in for corp in 21 Retail Corporate Extended from 9 to 15 months (until June 2021) Retail: 43% Corp: 30% Opt-in Retail Corporate Up to 9 months (until December 2020) Not statutory; banks encouraged to participate in moratoria Interest rate during deferral period accumulated and paid at the end of loan maturity Opt-in Retail Corporate Up to 6 months; 12 months for tourism (July 21) Retail:4% Corp: 10% Retail: 6% Corp: 21% Statutory Interest cannot be charged on unpaid interest Opt-out Retail Corporate Expired in June; extended for Aug & Sept 2020 * Customer participation in active moratoria at Erste Group subsidiaries as of September 30, 2020; moratoria participation in Austria includes deferrals ERSTEŚ Group Retail: 60% Corp: 50% Page 66#67The political/fiscal reaction - Details on loan guarantees Main characteristics • EUR 18bn programme for loans and guarantees for enterprises, especially SMEs Bridging loans in case of liquidity shortages EUR 33bn (COVID I, II, III) subsidised & guaranteed loan programmes COVID Praha for SMEs in Prague ERSTEŚ Group Other smaller COVID programmes for Sport, Culture, Rent etc. EUR 2.2bn in two state guarantee schemes (micro & SME, large corporates) EUR 5.6bn guaranteed loans to enterprises EUR 4bn state guarantee scheme for micro & SME loans EUR 1.7 bn for loans and guarantees for enterprises, especially SMEs Guarantee Up to 100% 80-90% (30% cap at portfolio level) Interest Subsidised (varies by products) Subsidised with absolute cap Absolute cap Period 2-5 years Up to 3 years 80-90% or subsidy of up to 4% Up to 6 years 80% 0-2.6% 3-15 years SME 80% Micro 80-90% Fully subsidised 3-6 years Up to 80-100% EUR 2.2bn programme for state guaranteed loans for micro companies and SMEs 80% (30% cap at portfolio level) Varies by product Up to 5 years • 4% LCY Up to 3 years <3% EUR Page 67#68Our response to Coronavirus - Erste Group is there for its customers, communities and employees • Employees Majority of HQ employees in home office Majority of HQ in home office Psychological support Health insurance benefit Majority of HQ in home office Protective equipment 24/7 online doctor Majority of HQ in home office Special benefits for pregnant, elderly people Majority of HQ in home office Transport allowance Psychological support Majority of HQ in home office High-risk employees working exclusively from home office Majority of HQ in home office Psychological support Majority of HQ in home office Paid leave for high risk employees Retail customers Branches remaining open & extending online services Branches remain open George available for moratorium applications Branches remain open Banker on phone/online Branches remain open Mobile ATMs available Special COVID-19 website Branches remain open More call centre staff Educational videos Branches remain open Repayment holiday Tripled call centre capacity Standard restructuring measures if needed Branches remain open Special authorisation for pension payment • Corporate customers Expanding client advisory & transmitting state support Extended credit facilities Online process for moratorium applications Extended phone service Free payment terminals Postponed repayments (beyond statutory) Extended credit lines Simplified processes Flexible lending and account administration Repayment holiday Extended revolving credit facilities Normal lending activity Working capital loans Guarantee schemes Various fee reliefs, eased conditions offered for businesses . Communities Supporting health care workers, affected people, hospitals Donation to Austrian Red Cross Call centres help with tracing contacts Donation to emergency committee Educational webinars Loan programme and donations to health care workers Donation to health care system & education & NGOs Entrepreneurial education Donation to hospitals Support for most vulnerable communities Healthcare donations Supporting disabled and elderly people ERSTEŚ Group Page 68#69Investor relations details • Erste Group Bank AG, Am Belvedere 1, 1100 Vienna E-mail: Internet: [email protected] http://www.erstegroup.com/investorrelations http://twitter.com/ErsteGroupIR 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] ERSTEŚ Group Page 69