Slide 1: FY 2019 results presentation
ERSTES Group FY 2019 results presentation
Slide 2: CEE region remains Europe's growth outperformer
CEE region remains Europe's growth outperformer Real GDP growth seen up by 2-4% in 2020 vs. 1% in euro area Real GDP growth (in %) Summary > Region’s growth path has become more stable and coh resilient Rebalanced economies, with growth driven by domestic 49 2020f 41 AZ go 35 36 30 Ary demand; stron
Slide 3: Solid public finances
Solid public finances Healthy economic fundamentals, supported by 2019 @ 2020f Source: Erste Group Research 2019 @ 2020F Source: Erste Group Research ERSTES Group
Slide 4: Rising wages and low unemployment drive domestic demand
Rising wages and low unemployment drive domestic demand Capital market investments also benefit from rising disposable income ets of households Summary > Consumer confidence proving to be more resilient than in Western Europe thanks to ‘wage increases > Capital market investments becoming more impor
Slide 5: Interest rate environment
Interest rate environment Clear headwinds, but at least in CEE interest rates are positive Austria 0.66 ee -0.27 -0.13 —— 2018 2019 0319 Q419 > ECB cut discount rate to zero in March 2016 > Maintains expansionary monetary policy stance, despite tapering announcement Slovakia 0.86 SE ous ou o-———* 20
Slide 6: Underlying operating performance significantly improved, one-offs weigh on net profit
Business performance Underlying operating performance significantly improved, one-offs weigh on net profit Qo0 net profit reconcilation (EUR mn) [ ~49,7% ~~ -82 247 319 Operating Operating Riskcosts Other Taxeson Minorities Q419 income expenses result income ERSTES Group YoY net profit reconciliatio
Slide 7: Continued growth in customer loans (+7.3% YoY) and deposits (+6.9% YoY)
Business performance Continued growth in customer loans (+7.3% YoY) and deposits (+6.9% YoY) Customer loans (net; EUR bn) Group AT/EBOe 3: AT/SB ee CZ | RO a SK —e |) HU a HR ns RS : Customer deposits (EUR bn) 173 3 Loan-Deposit ratio (%) o18 &2 2 928 ———————— 942 SS 32 5 27 a 72° 659 a co 5 95.1 SS
Slide 8: Growth in operating income outpaces expenses
Business performance Growth in operating income outpaces expenses All revenue streams show increases Operating income (EUR mn) c_ +4.9% — 71 7,256 ee 507, 2018 Net interest income Net fee and commission income ERSTES Group @ Net trading result Other income 2019 Operating expenses (EUR mn) cr +2.4% —
Slide 9: Operating result rises by 8.7%; Cost/Income ratio improves to 59.0%
Business performance Operating result rises by 8.7%; Cost/Income ratio improves to 59.0% Operating result (EUR mn) Cost/Income ratio (in %) Group /— 82 2973 30° AT/EBOe aon ico AT/SB sm 520 03 @Z fal  at RO I S20 a2 SK 307 aT HU i220 as. HR 207 S19 RS Fe mar DEC18 @ DEC19 ERSTES Group
Slide 10: Other operating result impacted by one-offs in Romania and Slovakia
Business performance Other operating result impacted by one-offs in Romania and Slovakia Other operating result * (EUR mn) Levies on banking activities (EUR mn) -299 -l2 -604 -128 2018 2019 2018 2019 Goodwill in Slovakia in the amount of EUR 165 mn written down completely Banking tax (EUR 11mn) paya
Slide 11: Capital continues to improve organically
Business performance Capital continues to improve organically DEC 2010 DEC 201. DEC 2012 DEC 2013 DEC 2014 DEC 2015 DEC 2016 DEC 2017 DEC 2018 DEC 2019 ERSTES Group
Slide 12: Healthy asset quality continues, with risk costs still at very low levels
Business performance Healthy asset quality continues, with risk costs still at very low levels Risk costs: Absolute* (EUR mn) Group = AT/EBOe “ 5 AT/SB = = Z * * RO 23 SK HU “ HR 6 RS ae Ft ERSTES: Group gative figure reflects a net release of risk provisions 24 3 -0.95 -0.03 -0.01 0.04 -0.05 -016 R
Slide 13: NPL ratio of 2.5% is lowest since IPO in 1997
Business performance NPL ratio of 2.5% is lowest since IPO in 1997 NPL coverage improves to 77.1% NPL volume (EUR mn) NPL ratio (%) Group — ade rh AT/EBOe 0 cig AT/SB 1 2 Z ‘So 3 RO 39° a SK ie 30° HU ae Fran HR = : a RS io Ww DEC18 @ DEC19
Slide 14: Corporates and Markets
Corporates and Markets Solid 2019 performance Corporates Group Markets Asset Management Clients benefit from growth in customer Operating result increases to Growth in Assets under Management to loans to more than EUR 55 bn (+9% yoy) EUR 297 mn (+2% yoy) EUR 64 bn (+11% yoy) Operating Result exceeds
Slide 15: Retail lending volume rises by 3.9% to EUR 73.8 bn
Business performance Retail lending volume rises by 3.9% to EUR 73.8 bn Retail Highlights for 2019 MORTGAGES RETAIL DEPOSITS % 6.1% + 8.0% + 6.1% Volume rises to EUR 47.5 bn Financing for almost 100,000 households in 2019 on continued deposit inflow BANCASSURANCE + 5.2% & Volume of total gross writt
Slide 16: Customers love digital innovation
Customers love digital innovation More than 5.4 mn George users in CEE > George is the leading pan-European banking platform, onboarding over 5,000 users a day ~ George is open to partners thanks to APIs and modular architecture > Strong client uptake for Apple Pay ERSTES Group
Slide 17: Operating in the growth engine of the European Union
Operating in the growth engine of the European Union Strong operating performance — positive jaws Sound asset quality, low risk costs Strong capital position Above average profitability Risk factors to guidance 2020 Outlook Slight economic slowdown expected, with growth rates of 2% -- 4% in CEE, 1.3
Slide 18: ERSTES
ERSTES Group