Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q2 2025 Earnings Presentation
49 slides from Erste Group Bank's earnings presentation, Aug 2, 2025
Slide 1: Q2 25 results presentation
Q2 25 results presentation Vienna, 1 August 2025 Strong business performance, fast capital build Peter Bosek, CEO Erste Group Stefan Dörfler, CFO Erste Group Alexandra Habeler-Drabek, CRO Erste Group
Slide 2: Cautionary note regarding forward-looking statements
DISCLAIMER 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 CORRECTNES
Slide 3: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 3
Slide 4: Strong top line performance drives guidance upgrade
EXECUTIVE SUMMARY: P&L PERFORMANCE Strong top line performance drives guidance upgrade QoQ net profit development YTD net profit development in EUR m in EUR m +2.2% +24.0% 147 158 1,665 45 921 1,629 42 5 2 182 56 58 17 11 743 64 Q1 25 Operating Operating Risk costs Other Taxes on Minorities Q2 25 1-
Slide 5: Excellent P&L indicators
EXECUTIVE SUMMARY: P&L DASHBOARD Excellent P&L indicators Net interest margin Cost/income ratio Risk cost ratio in % in % in bps G25: <50% G25: ~20 bps 2.43 2.45 2.46 2.41 34 2.33 51.4 16 15 17 6 48.0 47.5 46.3 45.1 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1
Slide 6: Well-balanced customer volume growth
EXECUTIVE SUMMARY: BALANCE SHEET PERFORMANCE Well-balanced customer volume growth YTD total asset development YTD equity & total liability development in EUR bn in EUR bn +2.1% 361.1 361.1 0.0 0.4 1.8 0.7 2.9 2.7 5.9 353.7 4.2 0.9 5.9 6.8 2.5 353.7 31/12/24 Cash Trading, Loans to Net loans Intangibl
Slide 7: Strong balance sheet metrics
EXECUTIVE SUMMARY: BALANCE SHEET DASHBOARD Strong balance sheet metrics Loan/deposit ratio Loan & deposit growth Asset quality in % yoy, in % in % G25: >5% 80.6 78.7 74.6 73.6 72.5 90.2 89.4 90.1 5.8 6.0 89.0 4.9 87.9 2.6 2.5 2.5 3.1 3.5 2.4 2.4 4.6 3.8 3.4 1.7 -0.4 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q
Slide 8: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 8
Slide 9: CEE set to grow moderately in 2025, to accelerate in 2026
MACROECONOMIC AND BUSINESS UPDATE: ECONOMIC FORECASTS * CEE set to grow moderately in 2025, to accelerate in 2026 Real GDP growth Consumer price inflation Unemployment rate 2025 in % avg, in % avg, in % 2026 6.3 8.7 8.4 5.6 3.1 3.9 5.7 3.1 3.0 2.8 4.7 4.4 2.6 3.9 4.1 5.3 5.1 5.3 5.6 5.5 2.0 2.2 3.3
Slide 10: Retail business enjoys good volume momentum
MACROECONOMIC AND BUSINESS UPDATE: RETAIL BUSINESS Retail business enjoys good volume momentum Retail loan demand accelerates noticeably Gross retail loans by product * − Housing finance volumes improve across the group (+1.9% qoq, +5.5% yoy) as customer demand is supported by lower rates in EUR bn
Slide 11: Corporates & Markets business performs well
MACROECONOMIC AND BUSINESS UPDATE: CORPORATES & MARKETS BUSINESS Corporates & Markets business performs well Growing wholesale business and strong fee performance Net loan stock of Corporate segment − Growth impulses since YE 24 from Large Corporates across the region, SME market demand picking up.
Slide 12: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 12
Slide 13: Loan growth momentum continues to build – 2025 guidance upgraded
OPERATING TRENDS: NET LOAN STOCK AND GROWTH Loan growth momentum continues to build – 2025 guidance upgraded Net loan stock Growth rates Loan growth accelerates in Q2 25, including in Austria − Yoy growth strong across the board, but more pronounced in Retail 211.3 1.8% than in Corporate business, u
Slide 14: Retail deposit growth accelerates
OPERATING TRENDS: CUSTOMER DEPOSIT STOCK AND GROWTH Retail deposit growth accelerates Customer deposits Growth rates Erste Group’s favourable deposit mix is a key competitive advantage – overweight retail, sight, LCY deposits 240.2 1.0% Group 246.1 3.4% 248.5 Key Q2 25 deposit drivers 46.4 0.5% − Co
Slide 15: NII up yoy & qoq, NIM bounces back
OPERATING TRENDS: NET INTEREST INCOME (NII) AND NET INTEREST MARGIN (NIM) NII up yoy & qoq, NIM bounces back Net interest income Net interest margin NII continues consolidation along the top − NII up 4.3% yoy, with increase driven by strong performance in CEE, 1,835 2.43% partly offset by decline in
Slide 16: Fees consolidate close to record levels
OPERATING TRENDS: NET FEE AND COMMISSION INCOME Fees consolidate close to record levels Net fee income by segment Net fee income by fee type in EUR m in EUR m +7.2% -2.4% 780 780 762 780 780 762 735 34 7 33 7 735 31 711 35 7 711 23 19 23 18 35 7 16 26 23 33 7 84 83 87 23 72 67 69 78 Other 21 67 31 7
Slide 17: Operating expenses driven by personnel, other admin costs
OPERATING TRENDS: OPERATING EXPENSES Operating expenses driven by personnel, other admin costs Operating expenses by segment Operating expenses by type in EUR m in EUR m +7.6% +1.2% 1,470 1,470 102 1,345 1,361 1,345 1,361 Residual other admin 30 176 1,265 1,262 53 66 23 64 25 1,265 1,262 123 74 Othe
Slide 18: Operating efficiency outlook confirmed
OPERATING TRENDS: OPERATING RESULT AND COST/INCOME RATIO (CIR) Operating efficiency outlook confirmed Operating result Cost/income ratio in EUR m in % +2.5% 1,536 1,468 1,458 1,505 18 80 18 1,390 24 Other 75 16 143 72 7 69 71 16 RS 133 122 143 122 109 115 119 118 HR 123 168 164 168 175 HU G25: <50 %
Slide 19: Moderate ytd risk costs drive guidance upgrade
OPERATING TRENDS: CREDIT RISK/RISK COSTS Moderate ytd risk costs drive guidance upgrade Risk costs by segment * Risk cost ratio * in EUR m in bps 186 78 86 G25: ~20 bps Other 97 RS 85 HR 31 HU 18 34 SK 15 9 6 RO 16 15 17 CZ AT/OA 6 AT/SB AT/EBOe 2020 2021 2022 2023 2024 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25
Slide 20: Asset quality remains strong across footprint
OPERATING TRENDS: CREDIT RISK/ASSET QUALITY Asset quality remains strong across footprint NPL ratio NPL coverage ratio NPL ratio and NPL coverage (exc collateral) stable − Fewer defaults result in lower NPL inflows year-to-date 2.4 in % 80.6 in % Group 2.5 74.6 − Strong work-out activity resulting i
Slide 21: Other result benefits from positive one-off
OPERATING TRENDS: OTHER RESULT Other result benefits from positive one-off Other result by segment Other result by accounting categories in EUR m in EUR m Other RS HR 0 0 HU 0 -15 SK -59 -76 RO CZ -57 -8 -121 AT/OA -57 -51 -8 AT/SB -1 -129 AT/EBOe -48 -129 -190 -193 -193 -190 Q2 24 Q3 24 Q4 24 Q1 25
Slide 22: Strong ytd business performance drives 2025 ROTE guidance upgrade
OPERATING TRENDS: NET RESULT, EARNINGS PER SHARE (EPS) & RETURN ON TANGIBLE EQUITY (ROTE) Strong ytd business performance drives 2025 ROTE guidance upgrade Net result by segment EPS & ROTE in EUR m in EUR +8.9% 886 921 19.5% 846 Other 17.2% 17.5% 743 609 RS 15.2% HR 11.5% HU SK 2.14 2.11 RO 1.87 1.8
Slide 23: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 23
Slide 24: Vast retail deposit base provides competitive funding advantage
WHOLESALE FUNDING AND CAPITAL: ISSUED DEBT AND INTERBANK FUNDING Vast retail deposit base provides competitive funding advantage Liabilities and equity Debt securities Interbank deposits Comments in EUR bn in EUR bn in EUR bn Highly granular and well- diversified Retail & SME 353.7 361.1 deposit bas
Slide 25: 2025 funding plan well on track
WHOLESALE FUNDING AND CAPITAL: LONG TERM FUNDING 2025 funding plan well on track Maturity profile of debt 9.2 in EUR bn 7.5 5.8 5.7 5.1 2.9 2.8 2.0 1.3 1.0 1.2 1.0 0.1 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037+ Debt CEE & EBOe Tier 2 Covered bonds Senior non-preferred bonds Se
Slide 26: Fast capital build, measured RWA inflation
WHOLESALE FUNDING AND CAPITAL: CAPITAL AND RISK-WEIGHTED ASSETS (RWA) Fast capital build, measured RWA inflation Basel 3 capital (phased-in) Risk-weighted assets (phased-in) in EUR bn in EUR bn -3.0% 152.7 154.8 157.2 152.6 151.6 7.4 6.6 5.4 6.8 6.1 16.2 16.3 16.7 21.1 21.1 +11.5% 34.5 30.1 29.9 30.
Slide 27: CET 1 ratio surpasses 17.4% well ahead of plan
WHOLESALE FUNDING AND CAPITAL: COMMON EQUITY TIER 1 (CET1), TIER 1 AND TOTAL CAPITAL RATIOS CET 1 ratio surpasses 17.4% well ahead of plan CET 1 ratio development Basel 3 capital ratios (reported, phased-in) in % in % 22.6 17.45 0.12 0.07 0.02 0.19 20.7 0.45 19.7 19.7 19.9 0.18 19.3 1.05 17.6 17.4 1
Slide 28: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX Page 28
Slide 29: Broad-based 2025 guidance upgrade
FINANCIAL OUTLOOK Broad-based 2025 guidance upgrade Variable 2025 guidance Key assumptions/additional comments Real GDP ~ +0-4% CEE GDP growth remains on the agenda Loans > 5% Upgrade driven by strong growth dynamics in key markets, improving trend in Austria NII > 0% Solid volume growth and managea
Slide 30: Presentation topics
PRESENTATION TOPICS EXECUTIVE SUMMARY MACROECONOMIC AND BUSINESS UPDATE OPERATING TRENDS WHOLESALE FUNDING AND CAPITAL FINANCIAL OUTLOOK APPENDIX: ERSTE GROUP BASICS, ERSTE GROUP DETAILED FINANCIALS & ERSTE GROUP ESG PROFILE Page 30
Slide 31: Banking leadership in Central and Eastern Europe (1)
APPENDIX: ERSTE GROUP‘S GEOGRAPHIC FOOTPRINT Banking leadership in Central and Eastern Europe (1) Czech Republic Slovakia Customers: 4.6m Customers: 2.1m Hungary Employees: 9,629 Employees: 3,548 Customers: 1.1m Branches: 336 Branches: 150 Employees: 3,413 Retail loan share: 27.0% Retail loan share:
Slide 32: Banking leadership in Central and Eastern Europe (2)
APPENDIX: ERSTE GROUP STRATEGY Banking leadership in Central and Eastern Europe (2) Eastern part of EU Focus on CEE, limited exposure to other Europe Retail Corporate Capital Public Interbank banking banking markets sector business Acting as financial SME and large Focus on customer Financing sovere
Slide 33: Commanding market shares across the CEE region
APPENDIX: MARKET SHARES Commanding market shares across the CEE region Gross retail loans Retail deposits Gross corporate loans Corporate deposits 21.4% 24.4% 24.4% 22.4% AT 21.8% AT 24.7% AT 24.7% AT 22.8% 26.8% 24.3% 22.6% 14.8% CZ 26.9% CZ 24.3% CZ 22.5% CZ 14.2% 27.0% 24.3% 22.7% 14.9% 24.5% 26.
Slide 34: Strong track record of profitability
APPENDIX: ERSTE GROUP FINANCIALS/PROFIT AND LOSS ACCOUNT Strong track record of profitability Year-to-date view Quarterly view in EUR million 1-6 24 1-6 25 YOY-Δ Q2 24 Q1 25 Q2 25 YOY-Δ QOQ-Δ Net interest income 3,687.5 3,786.4 2.7% 1,835.0 1,872.1 1,914.4 4.3% 2.3% Interest income 7,850.7 7,037.4 -
Slide 35: Strong balance sheet dominated by customer loans
APPENDIX: ERSTE GROUP FINANCIALS/BALANCE SHEET/ASSETS Strong balance sheet dominated by customer loans Quarterly data Change in EUR million Jun 24 Sep 24 Dec 24 Mar 25 Jun 25 YOY-Δ YTD-Δ QOQ-Δ Cash and cash balances 26,231 23,972 25,129 23,940 27,652 5.4% 10.0% 15.5% Financial assets held for tradin
Slide 36: Liabilities dominated by retail deposits
APPENDIX: ERSTE GROUP FINANCIALS/BALANCE SHEET/ EQUITY AND LIABILITIES Liabilities dominated by retail deposits Quarterly data Change in EUR million Jun 24 Sep 24 Dec 24 Mar 25 Jun 25 YOY-Δ YTD-Δ QOQ-Δ Financial liabilities held for trading 2,003 1,770 1,821 2,094 2,729 36.2% 49.8% 30.3% Derivatives
Slide 37: Capital requirements for 2025 slightly up on higher buffers
APPENDIX: REGULATORY CAPITAL POSITION/REQUIREMENT (SREP – SUPERVISORY REVIEW AND EVALUATION PROCESS) Capital requirements for 2025 slightly up on higher buffers Erste Group Consolidated Erste Group Unconsolidated 2023 2024 Q2 2025 YE 2025 2023 2024 Q2 2025 YE 2025 Pillar 1 CET1 requirement 4.50% 4.5
Slide 38: MREL compliance at point of entry level (bail-in)
APPENDIX: MULTIPLE POINT OF ENTRY (MPE) RESOLUTION STRATEGY MREL compliance at point of entry level (bail-in) Resolution Groups * Erste Group Bank AG 100% 69.3%** & Savings Banks + other subs 100% 100% 99.9% Banca Česká Slovenská Erste Bank Erste Bank Comercială spořitelna sporiteľňa Hungary Croatia
Slide 39: Austrian resolution group: MREL requirement based on RWA fulfilled
APPENDIX: DETAILS ON AUSTRIAN RESOLUTION GROUP Austrian resolution group: MREL requirement based on RWA fulfilled MREL capacity based on TREA (RWA)* Key take-aways Erste Group adopted multiple point of entry (MPE) in % 43.63% resolution approach − In Q2 25, Erste Group Bank AG received its MREL requ
Slide 40: MREL issuance progresses to plan
APPENDIX: MULTIPLE POINT OF ENTRY (MPE) RESOLUTION STRATEGY MREL issuance progresses to plan MPE resolution groups MREL issuance plan (by year-end 2025) 207 ~1,000 – 2,000 in EUR bn, in EUR m 92 as of Jun 2025 84 29 27 24 16 13 13 ~350-500 11 ~250-350 ~250-350 7 6 ~50-150 ~0-150 AT CZ SK RO HR HU Ho
Slide 41: Erste Group benefits from a highly diversified loan book
APPENDIX: GROSS CUSTOMER LOANS BY RISK CATEGORY, CURRENCY AND INDUSTRY Erste Group benefits from a highly diversified loan book Gross customer loans by industry By currency By business segment 228.2 in EUR bn 222.2 4.4 0.0 2% 2% 0% 0.1 1% 1% Other Other 3.9 3.6 3.2 1% 1% 22% 23% 27% 27% 4.4 5.9 4.8
Slide 42: Real estate snapshot
APPENDIX: CREDIT RISK/EXPOSURE HIGHLIGHT: REAL ESTATE (RE) Real estate snapshot Sound lending standards − Income producing projects (>80%) − Ring-fenced, A-class buildings in prime locations with risk-mitigating structures − Highly collateralised business with conservative valuation approach (applic
Slide 43: Financial asset portfolio contributes to net interest income
APPENDIX: FINANCIAL ASSET DRILL-DOWN Financial asset portfolio contributes to net interest income Financial assets – geographic view Financial assets – accounting view AC by issuer and currency in EUR bn +23.2% 68.2 69.6 3% 3% 6% 56.5 17.5 17.9 14% 14% 4% 3.1 3.0 6% 1% 12.5 2.7 2.4 2.2 1.2 6.6 3.7 6
Slide 44: Erste Group's sustainability strategy is centered on two main pillars
APPENDIX: ESG PROFILE (1)/ESG STRATEGY OF ERSTE GROUP Erste Group’s sustainability strategy is centered on two main pillars GREEN TRANSITION SOCIAL INCLUSION • Our goal is to achieve net zero status for our portfolio • We enhance financial inclusion through our social by 2050, adhering to sector-spe
Slide 45: Portfolio towards our environmental targets
APPENDIX: ESG PROFILE (2)/ENVIRONMENT – NET-ZERO TARGET SETTING Portfolio towards our environmental targets Financed emissions Sustainable finance corporate Scope 3, financed emissions, covering EUR 193.1bn exposure New specific purpose Sustainable Financing1 Committed amount (total), June 2025 in E
Slide 46: Erste Group benefits from a strong and well-diversified shareholder base
APPENDIX. SHAREHOLDER STRUCTURE Erste Group benefits from strong and well-diversified shareholder base By investor By region Erste Foundation direct 4.59% 5.98% 2.37% Sparkassen Beteiligungs 0.23% 0.23% GmbH & Co KG 1.24% 1.24% 12.59% Foundations 16.14% Wiener Städtische Austria 33.06% Versicherungs
Slide 47: Erste Group Bank AG boasts strong issuer ratings
APPENDIX: CREDIT RATINGS Erste Group Bank AG boasts strong issuer ratings Financial Profile SACP - Stand-Alone Credit Profile VR - Viability Rating Asset Risk baa1 a (Individual Rating ) Capital baa1 ▲ a Profitability baa3 Anchor bbb+ Funding Structure a2 Business position Strong +1 SRF - Support Ra
Slide 48: Geographical/operating and business segment view
APPENDIX: SEGMENT REPORTING STRUCTURE Geographical/operating and business segment view Erste Group – Geographical/operating segments Austria Central and Eastern Europe Other EBOe & Savings Other Czech − Holding ALM Slovakia Romania Hungary Croatia Serbia Subsidiaries Banks Austria Republic − Holding
Slide 49: Erste Group IR contact details
APPENDIX: INVESTOR RELATIONS CONTACTS AND SHARE INFO Erste Group IR contact details IR Team Role Phone Email Catherina Frass IR Assistant +4350100 17731 catherina.frass@erstegroup.com Gerald Krames IR Manager +4350100 12751 gerald.krames@erstegroup.com Peter Makray IR Manager +4350100 16878 peter.ma