Q3 2020 Business Update amid Covid-19

The 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

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