Q3 2020 Business Update amid Covid-19
Capital 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
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