Q3 2020 Business Update amid Covid-19 slide image

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 Page 56
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