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Annual Report
2025
1
Management report
Business performance and economic situation
Economic environment
From an economic point of view 2025 was mainly characterised by higher trade barriers, elevated policy uncertainty, stricter
immigration policies, rising AI (Artificial Intelligence)-related investments and continued regional conflicts. Inflation levels
declined further during the year although with significant regional divergence. On the monetary condition side, most of the world’s
major central banks continued to gradually loosen their respective policy stance and further cut their policy rates. The global
economy proved more resilient than expected which was mainly due to front loaded imports in the first half of the year and
reorganised supply chains to redirect trade flows. Economic growth rates varied significantly among advanced and emerging
economies with the latter significantly supported by China and India. Overall, the global economy achieved a growth rate of 3.3%.
Among advanced economies, the United States again outperformed the Euro Zone and Japan. While higher imports tariffs,
measures to curb immigration, the record long government shutdown, and policy uncertainty negatively impacted economic
growth in the US, these effects were counterbalanced by solid consumption, an accommodative fiscal and monetary policy as well
as strong AI-related investments. Inflation bottomed out in April 2025 then rising again at moderate levels. In response to the
weakening labour market the US Federal Reserve (Fed) resumed monetary policy easing and decreased the federal funds rate in
three steps, the first one in September, from 4.5% to 3.75%. The Fed also announced at its December meeting that it would start to
buy short-term government bonds. The initial amount was set at a monthly rate of USD 40 billion. The US government deficit
slightly decreased. Overall, the US economy grew by 2.1% in 2025.
In Europe economic growth was supported by resilient labour markets, decreasing inflation, and a more favourable interest rate
environment. In addition, policy support from the Recovery and Resilience Facility and other EU funding cushioned the effect of
tighter fiscal policy in several EU member states. Strong demand for services was supportive and important tourism destinations
such as Croatia and Spain benefited. Spain in particular recorded well above-average growth benefiting from successful reforms
and the country’s strong service sector. Germany, Europe’s largest economy, on the other hand, remained relatively weak. The euro
appreciated against the US dollar and other major currencies. Average inflation in the euro area hovered around the 2% target of
the European Central Bank (ECB), which cut the key policy rate from 3.00% to 2.00% in four steps during the year. The
unemployment rate stabilised at low levels in most European countries. Overall, the growth rate of the European Union stood at
1.5% in 2025.
Austria’s economic performance was slightly better than originally expected and after two years of recession the country’s economy
resumed with modest growth in 2025. Economic growth was mainly driven by increased consumption, government spending, and a
stabilisation of investment activity. Private consumption growth was supported by real income gains of the previous years. Exports,
on the other hand, dampened economic growth particularly against the backdrop of the weak performance of Germany, Austria’s
main trading partner. Non-residential construction recovered in 2025. Industrial production showed signs of recovery. Tourism
again performed well and contributed to economic growth. The agricultural sector, although not a major contributor to GDP, also
performed well. Overall, the Austrian economy underperformed the European Union average and grew by 0.4% in 2025.
Inflation increased during the year with average inflation in Austria amounting to 3.6%, above the euro zone average of 2.1%.
Service and energy prices remained among the main inflation drivers. Food prices and industrial goods prices also came in higher
than expected. Austria’s labour market remained relatively stable throughout the year with the unemployment rate increasing
slightly to 5.5%. Despite the fiscal consolidation measures adopted for the year the general government deficit increased further.
The general government debt in relation to GDP increased.
Central and Eastern European economies experienced solid economic growth in 2025 driven mainly by household consumption on
robust labour markets, easing inflation and, in most cases, higher real wages. Investment activity was fuelled by Next Generation
European Union funds. Deterioration of foreign demand was most pronounced in countries with a high dependency on Germany’s
economy, such as Slovakia or Hungary. Romania’s economy underperformed the CEE average as well. The economies of Croatia
and Poland posted the highest growth dynamics. Croatia benefitted from its booming tourism sector and was again one of the best
performing economies in the region. The Czech Republic also performed well. Consumer sentiment gradually recovered across all
CEE countries except Romania where fiscal consolidation affected households. Overall, CEE economies achieved GDP growth rates
ranging from 0.4% in Hungary to 3.6% in Poland in 2025.
2
Labour markets remained very strong in Central and Eastern Europe with the Czech Republic again posting one of the lowest
unemployment rates among the European Union countries. Inflation, on the other hand, increased in most CEE countries driven
mainly by higher food and energy prices. Romania’s inflation was the highest in the European Union as the country eliminated the
cap on electricity prices and increased value-added taxes in the course of the year. The Czech and Polish central banks further cut
their interest rates throughout the year while the Hungarian, Romanian and Serbian central banks kept their policy rates
unchanged. In Slovakia and Croatia ECB policy rates apply. While most CEE currencies were relatively stable during the year the
Hungarian forint appreciated against the euro. Windfall taxes, special banking levies, and financial transaction taxes were
introduced or increased in a number of CEE countries.
Analysis of performance
In the group management report P&L data of 2025 is compared with data of 2024, balance sheet data as of 31 December 2025 is
compared to data as of 31 December 2024. The entire development is presented in detail in the notes to the consolidated financial
statements.
Profit and Loss Statement

in EUR million | 2024 | 2025 | Change
Net interest income | 7,528 | 7,788 | 3.5%
Net fee and commission income | 2,938 | 3,191 | 8.6%
Net trading result and gains/losses from financial instruments at FVPL | 437 | 419 | -4.1%
Operating income | 11,178 | 11,659 | 4.3%
Operating expenses | -5,279 | -5,583 | 5.8%
Operating result | 5,900 | 6,076 | 3.0%
Impairment result from financial instruments | -397 | -478 | 20.3%
Other operating result | -414 | -158 | -62.0%
Levies on banking activities | -245 | -372 | 52.0%
Pre-tax result from continuing operations | 4,997 | 5,400 | 8.1%
Taxes on income | -1,053 | -1,103 | 4.8%
Net result for the period | 3,945 | 4,297 | 8.9%
Net result attributable to non-controlling interests | 819 | 788 | -3.9%
Net result attributable to owners of the parent | 3,125 | 3,510 | 12.3%

Net interest income
Net interest income rose especially in the CEE markets. Increases were recorded primarily in the Czech Republic and Slovakia and
were mainly attributable to higher loan volumes as well as lower interest expenses on customer deposits. The decline in Austria
was mainly due to repricing of variable rate customer loans and the delayed passing on of lower market rates on customer deposits.
The net interest margin (calculated as the annualised sum of net interest income, dividend income and net result from equity
method investments over average interest-bearing assets) was nearly stable at 2.41% (2.46%).
Net fee and commission income
Growth was achieved across all core markets and income categories. Asset management and the securities business showed a
strong development. Insurance brokerage also performed well. The significant rise in income from the lending business was mostly
attributable to a reclassification from payment services.
Net trading result & gains/losses from financial instruments measured at fair value through profit or loss
Net trading result as well as the line item gains/losses from financial instruments measured at fair value through profit or loss are
materially affected by the fair value measurement of debt securities issued. The related valuation is shown in the fair value result,
the valuation of corresponding hedges in the net trading result.
Net trading result deteriorated to EUR 313 million (EUR 519 million) due to negative valuation effects in derivatives held for
trading, despite a strong foreign exchange business. Gains/losses from financial instruments measured at fair value through profit
or loss trended in the opposite direction and improved to EUR 107 million (EUR -82 million), primarily due to a decline in losses
from the valuation of debt securities in issue at fair value.
3
General administrative expenses

in EUR million | 2024 | 2025 | Change
Personnel expenses | -3,202 | -3,335 | 4.1%
Other administrative expenses | -1,529 | -1,688 | 10.4%
Depreciation and amortisation | -547 | -560 | 2.3%
General administrative expenses | -5,279 | -5,583 | 5.8%

Personnel expenses were up in nearly all core markets – most significantly in Austria – driven mostly by collective salary
agreements. The rise in other administrative expenses was primarily attributable to higher IT, consulting and marketing expenses.
Contributions to deposit insurance schemes declined to EUR 53 million (EUR 72 million). Almost all of this decline occurred in
Austria, where contributions fell to EUR 13 million (EUR 33 million). General administrative expenses did include costs related to
the integration of Erste Bank Polska in an amount of EUR 38 million.
The cost/income ratio stood at 47.9% (47.2%).
Gains/losses from derecognition of financial instruments not measured at fair value through profit or loss and of
financial assets measured at amortised cost
Losses from this position amounted to EUR 41 million (EUR 91 million). This includes most notably negative results from the sale
of securities in the Czech Republic.
Impairment result from financial instruments
The impairment result from financial instruments amounted to EUR -478 million (EUR -397 million). Net allocations to provisions
for loans and advances rose to EUR 557 million (EUR 394 million), most nota bly in Central and Eastern Europe, which last year
benefited from releases. Positive effects came from high recoveries of receivables already written off, most notably in Austria.
Overall, the majority of impairments on financial instruments in 2025 occurred again in Austria..
Other operating result
Other operating result is significantly affected by taxes and levies on banking activities and one-off effects. Other operating result is
significantly affected by taxes and levies on banking activities and one-off effects. Taxes and levies on banking activities included in
this line item rose to EUR 372 million (EUR 245 million). In Austria, banking tax increased to EUR 133 million (EUR 40 million),
primarily on the back of a temporary tax increase in the amount of EUR 60 million. In Hungary, banking levies amounted to a total
of EUR 175 million (EUR 168 million). In Romania, banking levies rose to EUR 63 million (EUR 37 million), mainly due to the
increase in banking tax from 2% to 4% in July 2025. The rise in banking taxes was partly offset by lower contributions to resolution
funds, which dropped to EUR 15 million (EUR 28 million), most notably in the Czech Republic. In 2025, credit institutions in the
euro zone were again not charged regular contributions. Overall, other operating result improved mainly due to several positive
one-off effects, namely EUR 88 million related to a technical change in the inclusion of an associated company, EUR 77 million
resulting from the release of a provision after a positive court decision in Romania as well as EUR 48 million in gains from real
estate sales in the Czech Republic, while in the previous year a provision of EUR 90 million was booked for legal risks.
Net result attributable to owners of the parent
Taxes on income amounted to EUR 1,103 million (EUR 1,053 million). The decline in the minority charge to EUR 788 million
(EUR 819 million) was attributable to lower profitabili ty at the savings banks. The net result attributable to owners of the parent
rose to EUR 3,510 million (+12.3%; EUR 3,125 million). The return on tangible equity (ROTE) was 16.6% (16.3%).
adding some information.
4
Balance sheet

in EUR million | Dec 24 | Dec 25 | Change
Assets |  |  |
Cash and cash balances | 25,129 | 27,573 | 9.7%
Trading, financial assets | 75,781 | 79,522 | 4.9%
Loans and advances to banks | 26,972 | 20,827 | -22.8%
Loans and advances to customers | 218,067 | 231,985 | 6.4%
Intangible assets | 1,382 | 1,413 | 2.2%
Miscellaneous assets | 6,405 | 7,254 | 13.3%
Total assets | 353,736 | 368,574 | 4.2%
Liabilities and equity |  |  |
Financial liabilities held for trading | 1,821 | 2,412 | 32.4%
Deposits from banks | 21,261 | 16,919 | -20.4%
Deposits from customers | 241,651 | 252,991 | 4.7%
Debt securities issued | 51,889 | 54,872 | 5.7%
Miscellaneous liabilities | 6,346 | 6,715 | 5.8%
Total equity | 30,767 | 34,665 | 12.7%
Total liabilities and equity | 353,736 | 368,574 | 4.2%

Cash and cash balances amounted to EUR 27.6 billion (EUR 25.1 billion). Trading and investment securities held in various
categories of financial assets increased to EUR 79.5 billion (EUR 75.8 billion).
Loans and advances to credit institutions (net), including demand deposits other than overnight deposits, declined to
EUR 20.8 billion (EUR 27.0 billion). Loans and advances to customers (net) increased to EUR 232.0 billion (EUR 218.1 billion).
All core markets recorded a positive development, with Central and Eastern Europe posting stronger growth, most notably the
Czech Republic and Hungary. Growth was recorded in both retail and corporate business.
Loan loss allowances for loans to customers were almost unchanged at EUR 4.0 billion (EUR 4.1 billion). The NPL ratio – non-
performing loans as a percentage of gross customer loans – improved to 2.4% (2.6%), the NPL coverage ratio (based on gross
customer loans) slipped to 69.7% (72.5%).
Financial liabilities – held for trading amounted to EUR 2.4 billion (EUR 1.8 billion). Deposits from banks declined to
EUR 16.9 billion (EUR 21.3 billion). Deposits from customers increased to EUR 253.0 billion (EUR 241.7 billion) across the group,
most notably in the retail business and most strongly in the Czech Republic. The loan-to-deposit ratio stood at 91.7% (90.2%). Debt
securities in issue rose to EUR 54.9 billion (EUR 51.9 billion) on increased issuance activity.
Total assets rose to EUR 368.6 billion (EUR 353.7 billion). Total equity increased to EUR 34.7 billion (EUR 30.8 billion). This
includes AT1 instruments in the amount of EUR 3.5 billion. After regulatory deductions and filtering according to the Capital
Requirements Regulation (CRR) common equity tier 1 capital (CET1, CRR phased-in) rose to EUR 28.5 billion (EUR 24.0 billion)
as were total own funds (CRR phased-in) to EUR 36.5 billion (EUR 30.9 billion). Total risk – risk-weighted assets including credit,
market and operational risk (CRR phased-in) – declined to EUR 147.5 billion (EUR 157.2 billion). The decline, despite strong credit
growth, was attributable to a regulatory effect (CRR3 implementation) and securitisations and portfolio effects.
The total capital ratio, total eligible qualifying capital in relation to total risk, stood at 24.8% (19.7%), well above the legal minimum
requirement. The tier 1 ratio was 21.7% (17.0%), the common equity tier 1 ratio 19.3% (15.3%) (all ratios are CRR phased-in).
Cash earnings per share (diluted/undiluted) amounted to 8,25/8,26 in 2025 (EUR 7.20/7.21). Earnings per share (diluted/undiluted)
are EUR 8,24/8,24 (EUR 7.19/7.20).
The cash return on equity, i.e. the return on equity adjusted for non-cash expenses such as goodwill amortization and straight-line
depreciation for the customer relationships, was 15.7% (return on equity: 15.5%) after 15.2% (return on equity: 15.2%) last year.
Branches
Erste Group Bank AG maintains branches in New York, Hong Kong and Germany (Berlin and Stuttgart) that provide commercial
lending to foreign banks, leasing companies and sovereign debtors as well as institutional sales.
5
Expected development and risks of the Group
Long-term growth trends in Central and Eastern Europe
In line with growing economic performances disposable income have risen significantly in recent decades compared to Western
Europe. In addition, most countries of Central and Eastern Europe have labour markets that are considerably more flexible. These
advantages are complemented by, on average, highly competitive export industries that benefit from wage costs that are low
relative to workforce productivity and from investor-friendly tax and welfare systems.
A comparison of per capita private debt levels in Central and Eastern Europe with those of Western economies reveals the gap that
exists between these markets. Private debt levels and particularly household debt, are substantially lower than in the advanced
economies. Erste Group firmly believes that credit expansion accompanied by economic growth in this region will prove to be a
lasting trend.
Over the upcoming 15 to 20 years, on average, the countries of the eastern part of the European Union are therefore expected to
experience higher growth rates than the countries of Western Europe, even though periods of expansion may alternate with times
of economic stagnation or even setbacks on this long-term path of sustainable growth.
Customer banking in Central and Eastern Europe
The basis of Erste Group’s banking business are essentially the business segments of retail business, corporate business and the
capital markets business. For further information on the business segments, Erste Group refers to Note 1 Segment reporting in the
consolidated financial statements.
Retail business
Erste Group’s key business is the retail business, covering the entire spectrum from lending, deposit and investment products to
current accounts and credit cards. Erste Group’s core competence in retail banking has historical roots. In 1819, wealthy Viennese
citizens donated funds to establish Erste Group’s predecessor, the first savings bank in Central Europe. It was their aim to bring
basic banking services such as safe savings accounts and mortgage loans to wide sections of the population. Today, the bank serves
over 16 million customers in its markets and operates nearly 1,800 branches. Wealthy private clients, trusts and foundations are
served by the bank’s private banking staff and benefit from services that are tailored to the needs of this target group.
In addition, the bank uses and promotes digital distribution channels such as internet and mobile banking not only to meet the
increasing importance of digital banking, but also to actively shape the digital future. George, Erste Group’s digital platform, is
already available in six core markets: Austria, the Czech Republic, Slovakia, Romania, Croatia and Hungary. T he roll-out in Serbia
already started after year-end 2025 and will be completed in 2026.
Retail banking is attractive to Erste Group for a number of reasons: It offers a compelling business case that is built on market
leadership, an attractive risk-reward profile and the principle of self-funding. In addition, it benefits from a comprehensive range of
products that are simple and easy to understand and provide substantial cross-selling potential. Erste Group takes advantage of
these factors in all core markets and makes best use of its resulting position of strength by pursuing a hybrid business model. Erste
Group’s integrated-channel approach integrates the various sales and communication channels. Customers decide on how, when
and where they do their banking business. Contact centers serve as interfaces between digital banking and traditional branch
business. These contact centers offer advice and sales, thus going far beyond the traditional help desk function.
In addition to the expansion of digital sales channels, the branch network remains an important component of the business
strategy. Only a retail bank that offers modern digital services and operates an extensive distribution network is able to offer tailor-
made solutions and fund loans in local currency mainly from deposits made in the same currency. In short, Erste Group’s retail
banking model supports sustainable and deposit-funded growth even in economically more challenging times. Another positive
factor is the diversification of the retail business across countries that are at differing stages of economic development, which is the
case across the seven banking markets in which Erste Group has a direct presence.
Corporate business
The second main business line, which contributes significantly to Erste Group’s earnings, is business with small and medium-sized
enterprises, regional and multi-national groups, commercial real estate and public sector companies. Erste Group’s corporate
strategy is based on a universal service approach, following an organic growth strategy aimed at increasing the number of primary
clients and share of wallet across all corporate sub-segments.
6
Erste Group strives to be the bank of choice for outstanding service, encompassing financial health and sustainable business
practices. Based on the specific needs of its clients, Erste Group serves small and medium‑sized enterprises through local branches
or dedicated commercial centers, while larger and multinational groups are supported by specialized Large Corporates,
Commercial Real Estate, or Public Sector units. In addition, the Group maintains a focused approach to large multinational clients,
which are served centrally from the Holding through Group Large Corporates or related specialized units. Digital channels are also
gaining increasing importance for corporate clients, particularly within the small and medium‑sized enterprise segment.
The outlined approach enables Erste Group to integrate its industry‑specific and product expertise with a strong understanding of
regional needs and preferences, supported by the combined experience of local and central customer relationship managers as well
as modern data supported technology and intelligence .
Capital markets business
Client-driven capital markets activities are also part of the comprehensive portfolio of products and services that Erste Group offers
to its retail and corporate customers. The strategic significance of the bank’s centrally governed and locally rooted capital markets
operations consists in supporting all other business areas in their dealings with the capital markets and, hence, in providing the
bank’s customers with professional access to the financial markets. Erste Group, therefore, views its capital markets business as a
link between financial markets and its customers. As a key capital markets player in the region, Erste Group also performs
important functions such as market making, capital market research and product structuring.
The capital markets business serves the needs of Erste Group’s retail and corporate customers, as well as those of banks and non-
bank financial institutions. On account of Erste Group’s strong network in the eastern part of the European Union, the bank has a
thorough understanding of local markets and customer needs. In Erste Group’s capital markets business, too, the bank
concentrates on core markets of the Retail, SME, Large corporate, Corporate Real Estate and Public Sector business.
For institutional customers, specialized teams have been established in Germany and Poland, as well as in Hong Kong and New
York, that offer these customers a tailor-made range of products.
In many countries where Erste Group operates, the local capital markets are not yet as highly developed as in Western Europe or in
the United States of America. That means Erste Group’s banking subsidiaries are pioneers in some of these markets. Therefore,
building more efficient capital markets in the region is another strategic objective of Erste Group’s capital markets activities.
Customer Experience Index
As a profit-driven enterprise, Erste Group has a strong interest in its customers’ future behaviour and loyalty to the bank. The CXI
is an index that measures such loyalty and is derived from the evaluation of satisfaction ratings, referrals, readiness to switch to
another bank, customer effort score and the repurchase rate of the main customers of the individual banks
It thus reflects all conscious and unconscious experiences and decisions that Erste Group’s customers make with its bank in the
courses of their lives and that have an impact on the Group’s customers’ relations with Erste Group.
MEASURING CUSTOMER SATISFACTION
The Customer Experience Index (CXI) is determined by Group Customer Experience, which is part of Group Brand Management &
Communications, which in turn reports to the CEO. In the retail segment, a representative survey called the Banking Market
Monitor is carried out on a quarterly basis. 2,400 telephone interviews (with customers and non-customers) are conducted annually
across Erste Group’s markets. In the corporate customer segment, an extensive survey with at least 1,500 companies per country is
carried out once a year. These analyses are conducted by an external market research institute and provide data for a performance
comparison both within Erste Group and with its most important competitors. Based on these surveys, Erste Group’s customer
relations are rated in five categories (advocate, loyal, simply satisfied, non-engaged and dissatisfied) and successful improvement of
customer service is measured using the CXI (Customer Experience Index).
Based on these categories Erste Group calculates the CXI as follows:
% advocates + % loyal customers + 0.5 x% simply satisfied -% non-engaged - % dissatisfied. The CXI rating therefore ranges on a
scale from -100 to +100. This value is put in relation to the Top 3 competitors in each country and in each segment and is used to
identify the strengths and weaknesses of the local banks as compared to the market leaders.
7
The CXI is of great relevance for Erste Group as it is also used as input in the bonus assessment for members of the Management
Board of Erste Group, local banks and all employees. Targets for bonus evaluation purposes are set jointly by Group People &
Culture, Group Customer Experience and relevant business lines.
DETAILED RESULTS
The table shows the relative difference to the Top 3 competitors in the market and the ranking of the bank in the respective market:
Differences in relation to the top 3 competitors

| PI | Micro | SME | Total
| 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025
Erste Group | 2.4 | 6.0 | -0.9 | 0.4 | 2.9 | 3.9 | 1.9 | 4.8
Erste Bank Oesterreich | 18.6 | 16.9 | 3.2 | 1.3 | -2.0 | 3.7 | 12.0 | 11.9
Erste Bank Hungary | 1.5 | 16.1 | 2.2 | 4.9 | 0.0 | 1.8 | 1.3 | 11.7
Česká spořitelna | -2.3 | -2.0 | -15.0 | -11.5 | 0.9 | 4.4 | -3.7 | -2.5
Slovenská sporiteľňa | 1.0 | 4.5 | 6.1 | 6.3 | 4.7 | 4.2 | 1.8 | 4.6
Banca Comercială Română | -0.4 | 5.5 | 1.5 | 1.8 | 1.6 | 1.5 | 0.3 | 4.3
Erste Bank Croatia | 13.2 | 12.9 | 6.8 | 11.0 | 9.3 | 10.1 | 11.1 | 12.0
Erste Bank Serbia | 4.1 | 7.4 | -3.0 | -2.4 | -0.8 | 2.7 | 2.1 | 4.7

number 1 in the respective market
In 2025, the Erste Group once again succeeded in maintaining – or even improving – the excellent customer satisfaction levels
achieved in the previous year.
CXI Privates (PI)
In the segment of private customers not only Erste Bank Oesterreich and Erste Bank Croatia achieved the best values in their
respective countries this year, but also Erste Bank Hungary, Erste Bank Serbia, and Banca Comercială Română.
Compared to the Top 3 competitors, Erste Bank Hungary, Erste Bank Serbia, Slovenská sporiteľňa, and Banca Comercială Română
were able to improve their results, while the other banks remained stable.
CXI Micro segment
In the Micro segment, the subsidiary Slovenská sporiteľňa, Banca Comercială Română, and Erste Bank Croatia succeeded in taking
the leading position in their respective banking markets. Compared to the Top 3 competitors, Česká spořitelna and Erste Bank
Croatia improved their performance, while the development of all other banks remained stable.
CXI SME segment
In the SME segment, Česká spořitelna, Slovenská sporiteľňa, Banca Comercială Română, Erste Bank Croatia, and Erste Bank
Serbia demonstrated leading performance in their respective markets.The development in this segment was generally stable to
positive in all markets when compared to the Top 3 competitors. Erste Bank Oesterreich, Česká spořitelna, and Erste Bank Serbia
showed positive developments.
Erste Group’s strategy
Erste Group has devised a comprehensive and forward-looking strategy to secure its position as a leading financial institution in the
eastern part of the EU while addressing the challenges of rapidly changing market dynamics. Erste Group’s strategy addresses
significant global developments, including economic shifts, demographic changes, technological advancements, geopolitical
fragmentation and climate change, to ensure sustainable growth and resilience even in the event of a different future.
8
The political landscape in Europe and globally is changing rapidly, with rising populism, sentiments and measures hostile to the
European idea and potential political interventions in such forms as tariffs and new or expanded taxes posing challenges to some or
all of the bank’s core markets and to Europe more broadly. These challenges increase pressure on the continent’s politicians, often
leading to more interventionist policies and a distancing from the norms and practices that have so far shaped the EU. Monitoring
and appropriately responding to these developments on both global and CEE-specific levels is crucial for a large publicly-listed firm
with a prominent presence across the region.
Technological advancements, including AI, virtual/augmented reality, tokenized finance and quantum technology, are evolving
quickly. For Erste Group, data science and AI are expected to impact business operations and customer interactions, further
enabling high-quality and highly individualized digital advice and driving the demand for such advice on the part of the bank’s
clients.
The continuing convergence potential of CEE countries with the EU-27 remains a core principle of the bank’s business model.
However, rising wages and the end of cheap energy in Europe present growth challenges for the CEE economies, necessitating
adaptations to their long-term growth strategy.
The demographic shifts apparent across Europe will also impact the bank’s core markets, leading to shrinking workforces,
intensifying competition for talent and increasing wage pressures. Addressing these challenges through digitalization and AI to
improve workforce productivity is essential. Against the backdrop of ageing populations, Erste Group’s mission to provide access to
financial health across all age groups and customer segments takes on even more importance.
Environmental risks are also becoming increasingly significant. Projections indicate that five of the top ten global risks in the next
decade are likely to be environmental, such as extreme weather events and biodiversity loss. Erste Group is dedicated to
sustainability and aims to support social inclusion and is actively taking steps to support the net-zero transition being pursued by its
customers and region.
Erste Group’s strategy centers on five overarching objectives, designed to drive sustainable growth, improve customer experience
and strengthen operational excellence. These objectives emphasize the need for transformation, innovation and efficiency while
integrating principles of sustainability to ensure the bank remains competitive and relevant in a rapidly changing financial
landscape.
BUILDING A DISTINCTIVE BRAND IDENTITY
At the heart of Erste Group’s strategic goals is the creation of a unique and highly recognizable brand identity that resonates across
its markets. Erste Group seeks to differentiate itself from competition in the financial sector that is increasingly becoming
commoditized. This involves positioning Erste Group as more than just a bank, focusing instead on being a trusted partner that
understands and meets the needs of its customers at every stage of their financial journey.
To achieve this, Erste Group is committed to developing innovative and tailored products and services that cater to the specific
demands of regional markets and address the needs and interests of its customers at an individual level. This customer-first
approach is not only designed to foster customer-loyalty, but also to build long-term relationships by providing value that extends
beyond conventional banking. The group’s strong branding initiatives also seek to reinforce its reputation as a forward-thinking
and customer-focused financial institution.
PROVIDING EVERYONE WITH ACCESS TO FINANCIAL EXPERTISE AND FINANCIAL ADVICE
Erste Group proactively empowers every customer to improve their financial health. Modern technologies, particularly artificial
intelligence (AI) are at the core of Erste Group’s strategic objective to provide everyone with access to financial advice. The bank
aims to make high-quality financial expertise accessible to a much broader customer base by applying AI and data-driven solutions.
This represents a significant shift from traditional models, where personalized financial advice was often limited only to higher-
income clients.
Erste Group’s use of technology enables customized insights and recommendations tailored to individual financial needs. Whether
customers are seeking advice on investments, savings or retirement planning, this approach ensures they receive relevant
information and product offers in an easy-to-understand format to improve their financial health. Importantly, these technological
advancements will complement but not replace human interaction, ensuring that customers can still benefit from face-to-face or
conversation-based support when needed.
9
Through these efforts, Erste Group aims to bridge the gap between technology and personal service, creating a seamless, hybrid
advisory model that enhances the customer experience. Erste Group is also committed to integrate sustainability and ESG
principles and to improve financial literacy across its markets as a means of fostering informed decision-making on the part of its
clients.
DRIVING EFFICIENCY THROUGH DIGITALIZATION
A critical element of Erste Group’s transformation is its commitment to comprehensive digitalization. The bank plans to digitalize
all key processes across its operations, from customer-facing interactions to internal workflows, creating a more efficient and agile
organization. This focus on end-to-end digital solutions will not only enhance the speed and convenience of banking for customers
but also deliver significant cost savings and reduce operational risk through lowering the share of manual processes and improving
operational efficiency.
Digitalization efforts range from streamlining customer journeys, enabling seamless interactions through platforms such as Erste
Group’s flagship digital banking platform George, to digitalizing internal functions.
This ensures that customers can manage their banking needs independently while receiving a premium, user-friendly digital
experience. By making banking faster, more intuitive and more accessible, Erste Group can free up resources, allowing employees
to dedicate more time to high-value activities. This is essential for providing high-quality advisory services.
INNOVATIVE FINANCIAL HEALTH PROPOSITIONS
As part of its strategic focus, Erste Group is committed to developing innovative financial products and services that address the
evolving needs of its customers. This includes broadening the bank’s product offering in areas such as wealth management, as well
as introducing insurance and pension schemes designed to improve customers’ financial health and resilience. By aligning its
product portfolio with the priorities of its customers, Erste Group ensures that it remains relevant in an increasingly competitive
market.
By delivering value-driven and innovative solutions, Erste Group is positioning itself as a partner that genuinely cares about the
prosperity of its clients.
EXPANDING THROUGH ORGANIC AND INORGANIC GROWTH
Erste Group continues to capitalize on the substantial growth potential within the CEE banking sector by advancing both its
organic expansion initiatives and its long‑term strategy of targeted inorganic growth. With a focus on strengthening its presence in
existing markets and broadening its regional footprint, the Group has now taken a significant step toward consolidating its position
as a leading financial institution in Central and Eastern Europe through its successful entry into Poland — the region’s largest and
fastest‑growing economy, characterized by strong fundamentals and an underpenetrated banking sector.
A major milestone in this strategic expansion was the acquisition of Santander Bank Polska S.A. (‘SPL Bank’). The transaction
agreement was signed on 5 May 2025 and successfully closed on 9 January 2026, marking Erste Group’s formal entry into the Polish
market. The acquisition includes a 49% stake in SPL Bank as well as a 50% stake in Santander Towarzystwo Funduszy
Inwestycyjnych S.A. (‘TFI’- asset manager, further 50% are held directy by SPL Bank), both purchased from Banco Santander S.A.,
Spain. With the transaction now completed, Erste Group is positioned to accelerate operational integration and leverage the
substantial opportunities offered by this new market.
Strategic mergers and acquisitions such as this one enable Erste Group to scale its operations more effectively, diversify its
customer base, and unlock synergies across the Group’s regional network. These advantages — combined with the Group’s solid
financial foundation — ensure that Erste Group remains well equipped to pursue high‑value opportunities that align with its
long‑term strategic direction.
The rationale behind the acquisition is firmly anchored in Erste Group’s objective to establish a meaningful and sustainable scale in
each of its core markets. Poland’s economic resilience, market size, and attractive growth dynamics make it a natural and
strategically compelling extension of Erste Group’s presence in the CEE region. With the acquisition now finalized and stepping
into the integration phase, Erste Group is poised to deepen its regional influence and reinforce its growth trajectory in one of
Europe’s most promising banking markets.
10
SUSTAINABILITY AS A STRATEGIC DRIVER
Sustainability is an integral part of Erste Group’s long-term vision to ensure future success by taking into account environmental,
social and governance (ESG) factors. Erste Group’s sustainability strategy is based on two main pillars: supporting the green
transition and promoting social inclusion.
The Group supports the green transition in the CEE region by promoting a sustainable real estate sector and financing emission
reductions in the energy sector, in line with Erste Group's net zero ambition. Erste Group offers sustainable financing, sustainable
investment funds and advisory services to help businesses and private clients reduce their environmental footprint and positions
itself as a preferred partner for sustainability-oriented clients.
Erste Group assists its corporate customers with ESG topics by facilitating their green transition. To align the retail business with
the ESG strategy, Erste Group offers products and services that promote decarbonization aiming to enhance both financial health
and environmental sustainability. These products are aimed at not only providing financial security, but also empowering
customers to achieve their long-term goals.
Internally, Erste Group is reducing its carbon footprint by optimizing energy use and adopting environmentally friendly practices.
Social responsibility is embedded in Erste Group’s DNA, with initiatives aimed at reducing inequality, increasing financial access
and supporting community development. The bank also focuses on governance, ensuring transparency, ethical decision-making
and accountability.
Innovation is key in this sphere too, with advanced technologies like AI and data analytics enhancing sustainability solutions. Erste
Group’s holistic approach to sustainability aligns its business goals with ESG principles, ensuring inclusive, responsible growth.
This strategy combines customer-centric initiatives, technological innovation, operational efficiency and sustainable growth,
positioning Erste Group as a trusted financial institution in the CEE region.
For more details regarding strategy please refer to the chapters ‘SBM-1 - Strategy, Business model and value chain' in the
sustainability statement’ and ‘E1 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business
model’.
Outlook statement
Erste Group’s goal for 2026 is to achieve a return on tangible equity (ROTE) of about 19% and an increase in earnings per share of
more than 20% based on 2025 net profit adjusted for one-off items compared to 2026 net profit adjusted for extraordinary items
connected to the acquisition and first-time consolidation of Erste Bank Polska. This ambition is built on the following key
assumptions:
Firstly Erste Group’s business, as at year-end 2025 in seven core markets (Austria, Czech Republic, Slovakia, Romania, Hungary,
Croatia and Serbia), is expected to perform well supported by an improved macro-economic environment, broadly stable interest
rates, especially in the euro zone, stable margins and healthy loan volume growth of more than 5%. Operating performance as
defined by operating result (operating income minus operating expenses) is expected to improve year-on-year, as net interest
income is projected to grow by about 5%, fee and commission income continues to grow by more than 5%, net trading and fair
result produces a similar revenue contribution as in 2025, and operating expenses grow in the order of 3%. Consequently, the cost/
income ratio is expected to improve from the level of about 48% in 2025 to about 47% in 2026. Other operating result is expected to
normalise following several positive one-offs in the amount of about EUR 270 million in 2025 and be more in line with the amount
of banking levies also booked in this line item. Risk costs, at 20-25 basis points, are expected at a similarly benign level as in 2025.
Secondly, extraordinary effects due to the full consolidation of Erste Bank Polska are primarily expected in net interest income,
operating expenses and risk costs. Net interest income will be negatively impacted by about EUR 170 million (equivalent to a net
profit impact of approx. EUR -60 million) connected to the amortisation of positive fair value adjustments recognised on debt
securities and derivatives. In addition, interest income earned on the purchase price in 2025 will not recur in 2026. Operating
expenses will be affected by the amortisation of intangibles (customer stock and brand) and the booking of integration costs.
Customer relationships will be amortised over 10 years in the amount of about EUR 210 million per annum (net profit impact of
approx. EUR -70 million), while the brand will be fully written off following rebranding in 2026 (EUR 30 million gross or EUR ~10
million net). Remaining integration costs are forecast at EUR 180 million gross, mostly booked in 2026. The corresponding net
impact will depend on the allocation of costs between the parent company and the local bank, which is still to be determined. Risk
costs will be impacted by a EUR 300 million charge (net profit impact of about EUR -120 million) for expected credit losses of the
Polish portfolio required under IFRS 9 following fair valuation of all assets and liabilities on first-time consolidation, in line with
IFRS 3. This charge is not indicative of portfolio deterioration.
11
Consequently, taking into account organic underlying growth as well as the contribution from Erste Bank Polska including
extraordinary effects from its first-time consolidation, Erste Group in its now eight core markets, in 2026, targets net interest
income in excess of EUR 11 billion, fee income of approx. EUR 4 billion and operating expenses of about EUR 7 billion.
Consequently, the cost/income ratio is projected to improve to about 45%. Risk costs are expected in the range of 25-30 basis points
of average gross customer loans, as risk costs tend to be somewhat higher in Poland than in other CEE markets. This expectation is
adjusted for the EUR 300 million one-off ECL provision mentioned above. Reported net profit for the combined entity is forecast
somewhat below EUR 4 billion, net profit adjusted for extraordinary items related to first time consolidation of Erste Bank Polska is
projected at somewhat above EUR 4 billion.
First-time consolidation of Erste Bank Polska is expected to result in a CET 1-ratio drawdown of approximately 460 basis points,
and consequently, lead to a dip in the CET 1-ratio in the first quarter of 2026, albeit from a historic record level of 19.3% at the end
of 2025. Thereafter, in line with the projected strong profit performance, the CET1 ratio is expected to increase in 2026, providing
renewed capital return and/or M&A flexibility. Due to the full internal funding of the Erste Bank Polska acquisition, which
required higher profit retention in 2025, Erste Group management will propose a reduced dividend payment of EUR 0.75 per share
to the annual general meeting. This equals a payout ratio from 2025 net profit after deduction of AT1-dividends of 9.1%, in line with
the 2025 dividend policy of limiting the payout ratio to 10%, announced at the time of acquisition.
Potential risks to the guidance include (geo)political and economic (including monetary and fiscal policy impacts) developments,
regulatory measures as well as changes to the competitive environment. Current international (military) conflicts do not impact
Erste Group directly, as it has no operating presence in regions involved. Indirect effects, such as financial markets volatility,
sanctions-related knock-on effects, supply chain disruptions or the emergence of deposit insurance or resolution cases cannot be
ruled out, though. Erste Group is moreover exposed to non-financial and legal risks that may materialise regardless of the economic
environment. Worse than expected economic development may put goodwill at risk.
Risk management
With respect to the explanations on substantial financial risks at Erste Group as well as the goals and methods of risk manage-
ment, Erste Group would like to draw the reader’s attention to the information provided in Note 32 Risk management and in the
Notes 27 , 34 et seq, 44, 45, 46 and 54 of the consolidated financial statements.
Research and development
Digitalisation
Digitalisation and innovative technologies have fundamentally transformed the banking sector, with change unfolding at an ever
faster pace. Digital technologies reshape not only consumer expectations. Erste Group is convinced that digital banking will further
gain in relevance and will be essential for sustainable economic success in the long term and is therefore committed to digital
innovation. Intra-group interdisciplinary teams are developing innovative solutions with the goal of offering everyone access to
financial literacy and financial advice and helping the bank’s customers to strengthen their financial health in a sustainable
manner.
The centre-piece of Erste Group’s digital strategy is the digital platform George, designed to provide customers access to
personalised products of Erste Group. APIs support a wide range of co-operation arrangements with fintechs, start-ups and even
across industries and can therefore help to open up new markets and attract new customers. George is available to retail customers
in Austria, the Czech Republic, Slovakia, Romania, Croatia and Hungary.The roll-out in Serbia already started after year-end 2025
and will be completed in 2026. At present, George is being actively used by more than eleven million customers. The portfolio of
digitally available products and services is being constantly expanded. Customers can activate applications via plug-ins and use
them to manage their finances.
George Business was developed to provide excellent digital banking to corporate customers as well. It was implemented in Austria
in 2022, in Romania in 2023, and in the Czech Republic in 2025. The roll-out in Slovakia will be completed in 2026. It is the aim to
offer all customer segments across the group an outstanding digital user experience on a single platform.
Digital innovation such as artificial intelligence (AI) and deep customer data analysis are the key to success. Erste Group’s holistic
approach combines the broadening of financial expertise through the use of modern technologies (‘AI-supported digital advisory’)
with the digitalisation of all relevant bank processes. One App for the account, cards, savings, loan and securities account.
12
In 2025, software development costs of EUR 27 million (EUR 25 million) were capitalised.
Reporting on material characteristics of the internal
control and risk management system with regard to the
accounting process
Internal Control System Framework Requirements
The internal control system (ICS) is an essential element of the corporate governance system of Erste Group contributing to the
safeguarding of shareholders’ investments and company’s assets. Erste Group’s ICS plays a key role in identifying risks associated
with the respective internal processes.
The ICS Policy provides the framework conditions for the internal control system at Erste Group. It defines current standards
concerning general tasks and responsibilities as well as minimum criteria for ICS documentation. In Erste Group, a top down, risk
oriented, decentralised ICS approach is applied, designed based on the local process map, which promotes adequacy by focusing on
all material risks. This means, that all material risks identified must be mitigated by key controls which are involved in the ICS
process. The following criteria are applied for an adequate ICS:
_ Completeness: The process landscape as well as policies and procedures issued within the Group Policy Framework ensure that
all identified risks and potential risk scenarios are considered, regulated and managed, aiming to set up a comprehensive and
integrated control environment throughout the entity. All material risks must be covered with key controls, to demonstrate the
importance at local level.
_ Effectiveness and traceability: The functionality of key controls are regularly checked, the optimal control environment is
reviewed and challenged during monitoring activity of risk appetite/tolerance.
_ Comprehensibility: The process landscape together with local policies and procedures constitute documentation of identified key
controls, which ensures that relevant employees are aware of all key controls and their role in the internal control process is
transparent and accountable within the entire local entity.
The risk profile, which includes the current and target situation, is monitored by each individual risk function unit and is
illustrated in the framework of the consolidated risk reporting (GRR) for the management or relevant Risk Committee.
Control environment
The Code of Conduct provides orientation for all employees of Erste Group, defines mandatory rules for day-to-day business life,
describes the corporate values, affirms the obligation to act responsibly as a company and ensures compliance with legal provisions
and internal guidelines (compliance).
The awareness of potential compliance issues and a sustainable risk culture enable risks to be identified quickly and well-
considered decision-making when dealing with existing regulations. The main component of the risk culture are internal
guidelines and, above all, open communication in order to create the broadest possible awareness of all employees for all risks that
Erste Group is confronted with.
The Management Board is responsible for the establishment, structure and application of an appropriate internal control and risk
management system that meets the company’s needs in its group accounting procedures.
Erste Group’s IFRS Accounting Manual provides a comprehensive methodological basis for the preparation and submission of the
monthly, quarterly and annual IFRS Group Reporting Packages by Erste Group’s subsidiaries.
The management in each subsidiary is responsible for implementing group-wide instructions. Compliance with group rules is
monitored as part of the audits performed by group and local auditors.
Group Accounting and Group Controlling are responsible for preparing the consolidated financial reporting. Both divisions are
assigned to the CFO of Erste Group. The preparation of the consolidated financial statements is the responsibility of the Group
Accounting department. The assignment of competencies, the process description and the necessary control procedures are defined
in the working instructions.
13
Risk assessment and controls measures
The main risk in the financial reporting procedures is that errors or deliberate action (fraud) prevent facts from adequately
reflecting the company’s financial position and performance. This is the case if the data provided in the financial statements and
notes is materially deviating from the correct figures, i.e. whenever, alone or in aggregate, they could influence the decisions made
by the users of financial statements. Such a decision may incur serious damage, such as financial loss, the imposition of sanctions
by the banking supervisor or reputational harm.
Furthermore, especially estimates for the determination of the fair value of financial instruments for which no reliable market
value is available, estimates for the accounting of risk provisions for loans and advances and for provisions, complex measurement
requirements for accounting as well as a volatile business environment bear the risk of significant financial reporting errors.
Erste Group issues group policies used for preparation of consolidated financial statements in accordance with IFRS. A summary
description of the accounting process is provided in Erste Group’s IFRS Accounting Manual. All transactions in subsidiaries have to
be recorded, posted and accounted for in accordance with the accounting and measurement methods set out in this manual.
The basic components of the internal control system (ICS) within Erste Group are:
_ systemic, automatic control systems and measures in the formal procedure and structure, e.g. programmed controls during data
processing,
_ principles of functional separation and checks performed by a second person (the four-eye principle),
_ Controlling as a permanent financial/business analysis (e.g. comparison of target and actual data between accounting and
controlling) and control of the company and/or individual corporate divisions,
_ highly automated data validation in the group consolidation process.
_ The integrated Disclosure Management Tool ensures high audit readiness through clear documentation (‘Single Source of truth’).
The areas of responsibility assigned to the individual positions are documented and are continuously updated. Special attention is
paid to a functioning deputy regulation in order not to jeopardize the ability to meet deadlines if one person is absent.
Group consolidation
The individual financial statements reported by the subsidiaries in the consolidation system are checked by the person responsible
for the individual financial statements in Group Accounting as part of the data release process, which provides for extensive, largely
automated check routines and - if necessary - adjustments to the individual financial statements are made in coordination with the
individual entities or the auditors. The subsequent consolidation steps are then performed using the consolidation system. These
include consolidation of capital, expense and income consolidation and debt consolidation, any intragroup gains are eliminated. At
the end of the consolidation process, the notes to the consolidated financial statements are prepared in accordance with IFRS and
BWG/UGB.
The consolidated financial statements and the group management report are reviewed by the Audit Committee of the Supervisory
Board and are also presented to the Supervisory Board for approval. They are published as part of the annual report, on Erste
Group’s website and in the Official Journal of Wiener Zeitung and finally filed with the Commercial Register.
Information and communication
Throughout the year, the group produces consolidated monthly reports for group management. Statutory interim reports are
produced that conform to the provisions of IAS 34 and are also published quarterly in accordance with the Austrian Stock
Corporation Act. Before publication, the consolidated financial information is presented to senior managers and the CFO for final
approval and then submitted to the Supervisory Board’s Audit Committee.
Reporting is almost fully automated, based on source systems and automated interfaces and guarantees up-to-date data for
controlling, segment reporting and other analyses. Accounting information is derived from the same data source and is reconciled
monthly for reporting purposes. Close collaboration between accounting and controlling permits continual target/actual
comparisons for control and reconciliation purposes. Monthly and quarterly reports to the Management Board and the Supervisory
Board ensure a regular flow of financial information and monitoring of the internal control system.
In addition, when introducing new core banking systems and implementing new products, accounting is in contact with the
relevant departments in order to provide information at an early stage on accounting-specific aspects and implications for new
product launches.
14
Monitoring
In order to monitor and at the same time support strong governance and risk management, Erste Group applies three lines of
defence to review the structures and processes that enable the achievement of the objectives for their effectiveness.
The first line of defence includes the business lines in which the department heads are responsible for monitoring including
internal controls of their business areas. This line is in constant dialogue with the business areas and reports on planned, actual and
expected results in connection with the goals of the organisation as well as on risks.
The role of the second line of defence is covered by specific areas of expertise, in addition to providing expertise, support,
monitoring and risk management tasks. At Erste Group, these activities are carried out by the departments Risk Management,
BWG Compliance, WAG Compliance, Anti Money Laundering Prevention, Group Data and Reporting Governance and Group
Security. Above all, the departments should support the business lines in the control steps, validate the actual controls, bring state-
of-the-art practices into the organisation and cover tasks related to risk management.
The third line of defence is responsible for providing independent and objective assurance and advice on the adequacy and
effectiveness of governance and risk management. Internal Audit is in charge of auditing and evaluating all areas of the bank based
on risk-oriented audit areas (according to the annual audit plan as approved by the Management Board and reported to the Audit
Committee). The main focus of audit reviews is to monitor the completeness and functionality of the internal control system.
Internal Audit has the duty of reporting its findings to the group’s Management Board, Supervisory Board and Audit Committee
several times within one year.
Internal Audit is according to section 42 Austrian Banking Act (BWG) a control body that is directly subordinate to the
Management Board. Its sole purpose is to comprehensively verify the lawfulness, propriety and expediency of the banking business
and banking operation on an on-going basis. The mandate of Internal Audit is therefore to support the Management Board in its
efforts to secure the bank’s assets and promote economic and operational performance and thus in the Management Board’s
pursuit of its business and operating policy. The activities of Internal Audit are governed in particular by the currently applicable
Rules of Procedure, which were drawn up under the authority of all Management Board members and approved as well as
implemented by them. The Rules of Procedure are reviewed on a regular basis and whenever required and adapted should the need
arise.
Holdings, purchase and sale of own shares
The presentation of own shares as of trade date follows the disclosure requirements in accordance with the Austrian Stock
Corporation Act (AktG).
Holdings of own shares

Number of shares | Dec 24 | Dec 25
Erste Group Bank AG | -257,675 | -106,551
Affiliates | 761,329 | 551,329
thereof pledged | 0 | 0

As of 31 December 2025 , retained earnings include a short position in Erste Group Bank AG shares amounting to 106,551 units
(prior year: short-position 257,675), which is covered by securities lending deals.
From the purchase and sale of its own shares in the long portfolio Erste Group Bank AG generated selling gains in course of
securities trading in the amount of EUR 0 million (2024: EUR 1 million) which were recognized in the capital reserve and in course
of the employee share program selling losses in the amount of EUR 1 million (2024: selling gains of EUR 1 million in the capital
reserve) which recognized in other retained earnings .
15
Purchase of own shares

| Erste Group Bank AG | Affiliates of Erste Group Bank AG
| Number of shares | Par value of the share capital EUR million | Purchase price in EUR million | Purpose of transaction | Number of shares | Par value of the share capital EUR million | Purchase price in EUR million | Purpose of transaction
January | 186,435 | 0.37 | 11.27 | trading |  |  |  |
February | 224,829 | 0.45 | 14.60 | trading |  |  |  |
March | 326,721 | 0.65 | 21.72 | trading |  |  |  |
March | 23,253 | 0.05 | 1.59 | employee share programm |  |  |  |
April | 398,793 | 0.80 | 23.36 | trading |  |  |  |
May | 116,459 | 0.23 | 7.97 | trading |  |  |  |
May | 22,000 | 0.04 | 1.55 | employee share programm |  |  |  |
June | 94,700 | 0.19 | 6.72 | trading |  |  |  |
June | 432,000 | 0.86 | 30.74 | employee share programm |  |  |  |
July | 49,155 | 0.10 | 3.74 | trading |  |  |  |
August | 79,466 | 0.16 | 6.70 | trading |  |  |  |
September | 178,594 | 0.36 | 14.88 | trading |  |  |  |
October | 54,412 | 0.11 | 4.59 | trading |  |  |  |
November | 48,650 | 0.10 | 4.39 | trading |  |  |  |
December | 155,854 | 0.31 | 15.49 | trading |  |  |  |
Total | 2,391,321 | 4.78 | 169.31 |  | 0 | 0.00 | 0.00 |

The purpose of securities trading was in particular ‘market making’ and hedging positions in the Austrian Stock Exchange Index
(ATX).
For further details on the employee share program, Erste Group refers to Note 62 Share-based payments.
Sale of own shares

| Erste Group Bank AG | Affiliates of Erste Group Bank AG
| Number of shares | Par value of the share capital EUR million | Selling price in EUR million | Number of shares | Par value of the share capital EUR million | Selling price in EUR million
January | 158,249 | 0.32 | 9.60 |  |  |
February | 249,493 | 0.50 | 16.17 |  |  |
March | 173,905 | 0.35 | 11.56 | 210,000 | 0.42 | 14.20
April | 361,592 | 0.72 | 21.74 |  |  |
May | 208,165 | 0.42 | 13.86 |  |  |
June | 719,873 | 1.44 | 50.53 |  |  |
July | 73,956 | 0.15 | 5.65 |  |  |
August | 57,357 | 0.11 | 4.83 |  |  |
September | 64,945 | 0.13 | 5.39 |  |  |
October | 65,251 | 0.13 | 5.58 |  |  |
November | 53,637 | 0.11 | 4.88 |  |  |
December | 53,774 | 0.11 | 5.32 |  |  |
Total | 2,240,197 | 4.48 | 155.11 | 210,000 | 0.42 | 14.20

Capital, share, voting and control rights and associated
agreements
For details in respect of capital structure, class of shares and treasury shares please refer to Note 55 Total equity of the consolidated
financial statements. The mandatory disclosure requirements of Section 243a (1) UGB are met as follows:
16
1. Capital structure and class of shares
As of 31 December 2025 , together with its syndicate partners (savings banks, share management savings banks –
‘Anteilsverwaltungs-sparkassen’ and savings bank foundations – ‘Sparkassenstiftungen’), DIE ERSTE oesterreichische Spar-Casse
Privatstiftung (‘ERSTE Stiftung’), a foundation, controls 25.52% (prior year: 25.41%) of the shares in Erste Group Bank AG and with
18.59% (prior year: 18,48%) is the main shareholder. The ERSTE Stiftung holds 6% (prior year: 5.94%) of the shares directly; the
indirect participation of the ERSTE Stiftung amounts to 12.59% (prior year: 12,54%) of the shares held by Sparkassen Beteiligungs
GmbH & Co KG, which is an affiliated undertaking of the ERSTE Stiftung. 2.66% (prior year: 2.66%) are held directly by savings
bank foundations, savings banks and the Erste employee share participation foundation (Erste Mitarbeiterbeteiligungsstiftung),
acting together with the ERSTE Stiftung. 4.27% (prior year: 4.27%) are held by a syndicate partner, Wiener Städtische
Versicherungsverein.
The Erste Group Bank AG forms a joint liability scheme (Haftungsverbund), together with the Austrian savings banks, in
accordance with article 4 (1) Z 127 CRR as well as an institutional protection scheme (IPS) approved by the supervisory authority
pursuant to article 113(7) CRR. The required individual services of the individual members of the scheme are in case of an occasion
subject to an individual and general ceiling. The applicable amounts are determined by joint liability scheme’s steering company
and made known to the paying members.
The payments of the individual members in the IPS Ex-Ante Fund established for support measures are recognised in the financial
statements as a share in IPS GesbR, which manages the ex-ante fund and are accounted for as retained earnings. Due to the
contractual terms, these retained earnings represent a blocked reserve. The release of this blocked reserve may only take place as a
result of the utilisation of the ex-ante fund due to a claim. This reserve can therefore not be utilised internally to cover losses and on
member level does not qualify as own funds according to the CRR; on a consolidated level, the ex-ante fund does qualify, however.
For details, please refer to the section scope of consolidation and Note 33.
Erste Group Bank AG is the central institution for the associated Austrian savings banks and together they form a cash pool
pursuant to section 27a Austrian Banking Act (BWG). Where necessary, Erste Group Bank AG must supply liquidity to an
associated savings bank in accordance with legal and contractual provisions.
2. Restrictions of voting rights and of the transfer of shares
The Articles of Association do not contain any restrictions affecting voting rights or the transfer of shares.
In shareholder agreements ERSTE Stiftung - which, together with its syndicate partners, held 25.52% capital shares as at 31
December 2025 (previous year: 25.41%) agreed the following: concerning the appointment of the members of the Supervisory Board
the partners are obliged to vote as required by ERSTE Stiftung. The partners can dispose of shares according to a predefined sale
procedure and can purchase shares only within the quotas agreed with ERSTE Stiftung (of a maximum of 3% per calendar year);
with this regulation an unwanted creeping-in according to takeover law shall be prevented. In addition, the partners have
committed themselves not to make a hostile takeover bid, nor to participate in a hostile takeover bid nor to act together with a
hostile bidder in any other way.
3. Direct or indirect shareholdings amounting at least 10%
Apart from ERSTE Foundation, the Management Board is not aware of any other direct or indirect shareholdings that amount to at
least 10%.
4. Special rights of control associated with holding shares
There are no shareholders with special control rights.
5. Voting rights control in the case of capital participation of employees
The voting rights of shares held by Erste Mitarbeiterbeteiligung Privatstiftung in trust or by proxy for the employees of employer
companies participating in employee share programs according to section 4d (5) (1) Income Tax Act (EStG) are exercised by the
Board of Directors of Erste Mitarbeiterbeteiligung Privatstiftung. The members of the Board of Directors are appointed and
dismissed by the Advisory Board through resolution with simple majority, whereby the delegation rights of Erste Group Bank AG
as well as the existing statutory employee representatives of Erste Group Bank AG and Erste Bank der oesterreichischen
Sparkassen AG shall be taken into account. A further member of the Board of Directors to be appointed by the Advisory Board shall
17
be a former member of the Management Board or a former (freelance) employee of an employer company pursuant to section 4d
(5) (1) Income Tax Act (EStG). The Advisory Board of Erste Mitarbeiterbeteiligung Privatstiftung consists of up to five members.
6. Special control rights, bodies and amendments of the articles of association
This concerns:
_ Art. 15.1 of the Articles of Association, which provides that ERSTE Stiftung will be granted the right to nominate up to one third
of the members of the Supervisory Board to be elected by the shareholders’ meeting, as long as ERSTE Stiftung is liable for all
present and future liabilities of the company in the case of its insolvency pursuant to Section 92 (9) Banking Act,
_ Art. 15.4 of the Articles of Association, which provides that a three-quarter majority of valid votes cast and a three-quarter
majority of the subscribed capital represented at the meeting considering the proposal are required to pass a motion for removal
of Supervisory Board members and
_ Art. 19.9 of the Articles of Association, which provides that amendments to the Articles of Association, in so far as they do not
alter the business purpose, may be passed by simple majority of votes cast and simple majority of the subscribed capital
represented at the shareholders meeting considering the amendment. Where higher majority votes are required by individual
provisions of the Articles of Association, these provisions can only be amended with the same higher majority vote. Moreover,
amendments to Art. 19.9 require a three-quarter majority of the votes cast and a three-quarter majority of the subscribed capital
represented at the meeting considering the proposal.
7. Powers of the Management Board to issue and repurchase shares
As per decision of the General Meeting of 21 May 2025:
_ The Management Board is entitled to purchase up to 10% of the share capital in own shares for the purpose of securities trading
according to section 65 (1) (7) Austrian Stock Corporation Act (AktG). However, the trading volume of shares acquired may not
exceed 5% of the share capital at the end of each day. The consideration may not be more than 50% below or above the closing
price of the share on the Vienna Stock Exchange on the last trading day prior to the acquisition. This authorization is valid for a
period of 30 months from the date of the resolution, i.e. until 21 November 2027.
_ The Management Board is entitled, pursuant to section 65 (1) (8) as well as (1a) and (1b) Stock Corporation Act and for a period
of 30 months from the date of the resolution, i.e. until 21 November 2027, to acquire own shares in the amount of up to 10% of
the share capital, subject to approval by the Supervisory Board and without any further resolution of the General Meeting at a
lowest consideration of EUR 2.00 per share and a highest consideration not exceeding 50% above the average Vienna Stock
Exchange price, weighted according to trading volumes, of the last 20 trading days prior to the respective acquisition of the
shares; in the case of a public offer, the cut-off date for the end of the calculation period shall be the day on which the intention to
make a public offer is announced (sec 5 (2) and (3) Austrian Takeover Act [ÜbG]). The acquisition may, at the discretion of the
Management Board and with the consent of the Supervisory Board, be effected on the stock exchange or by means of a public
offer or in any other legally permissible and expedient manner, in particular also off the stock exchange and/or from individual
shareholders and excluding the pro rata tender right (reverse subscription right). The authorization may be exercised in whole or
in part or in several partial amounts and in pursuit of one or more purposes by the Company, its affiliated companies (sec. 189a
(8) Commercial Code [UGB]) or for their account by third parties. Pursuant to section 65 (1b) Stock Corporation Act, the
Management Board is authorized for a period of five years from the date of the resolution, i.e. until 21 May 2030, with the
consent of the Supervisory Board, to sell or dispose the company’s own shares, also in a way other than via the stock exchange or
by means of a public offer for any legally permissible purpose, to determine the terms and conditions of the sale and to decide on
the exclusion of the shareholders’ subscription rights. These authorizations include the sale of own shares in particular for the
following purposes: (i) in order to be able to sell the shares for a consideration other than cash, provided that this serves the
purpose of acquiring (also indirectly) companies, businesses, parts of businesses, shares in one or more companies domestically
or abroad; (ii) to transfer shares free of charge or at a reduced price to employees, executives and members of the Management
Board of the Company or of an affiliated company (sec 189a (8) Commercial Code [UGB]) or of any other company within the
meaning of sec 4d (5) (1) Austrian Income Tax Act (EStG), as well as to Erste Mitarbeiterbeteiligung Privatstiftung and its
beneficiaries; and (iii) to resell own shares with partial or full exclusion of the subscription rights in any manner permitted by
law, including over-the-counter. The authorizations in this resolution may be exercised once or several times, in whole or in part,
individually or jointly.
_ The Management Board is authorized to redeem shares without further resolution at the General Meeting with the approval of
the Supervisory Board.
All sales and purchases were carried out as authorized at the General Meeting.
According to section 8.3 of the Articles of Association, the Management Board is authorized to issue until 18 May 2027, with the
consent of the Supervisory Board, convertible bonds (including Contingent Convertible Bonds according to section 26 Austrian
Banking Act), which have the conversion or subscription right for shares of the Company, observing or excluding the subscription
18
rights of the shareholders. The terms and conditions may, in addition or instead of a conversion or subscription right, also provide
for the mandatory conversion at the end of the term or at any other time. The issuance of convertible bonds is limited to the extent
that all conversion or subscription rights and in case of a mandatory conversion stipulated in the terms and conditions, the
mandatory conversion, are covered by conditional capital. Section 5.3 shall apply to the issue of convertible bonds without
subscription rights. The issue amount, the terms and conditions of the issue of the convertible bonds and the exclusion of the
subscription rights for the shareholders will be determined by the Management Board with the consent of the Supervisory Board.
8. Significant agreements which become effective, are amended or are rendered ineffective when
there is a change in the control of the company and their effects
CROSS-GUARANTEE SCHEME AGREEMENT
The agreement in principle of the cross-guarantee scheme (Haftungsverbund) provides for the possibility of early cancellation for
good cause. Good cause, allowing the respective other contracting parties to cancel the agreement, is deemed to exist if:
_ one contracting party grossly harms the duties resulting from the present agreement,
_ the ownership structure of a party to the contract changes in such a way – particularly by transfer or capital increase – that one or
more third parties from outside the savings bank sector directly and/or indirectly gain a majority of the equity capital or voting
rights in the contracting party or
_ one contracting party resigns from the savings bank sector irrespective of the reason.
The cross-guarantee scheme’s agreement in principle and supplementary agreements expire if and as soon as any entity that is not
a member of the savings bank sector association acquires more than 25% of the voting power or equity capital of Erste Group Bank
AG in any manner whatsoever and a member savings bank notifies the cross-guarantee scheme’s steering company and Erste
Group Bank AG by registered letter within twelve weeks from the change of control that it intends to withdraw from the cross-
guarantee scheme.
DIRECTORS & OFFICERS-INSURANCE
In the event that any of the following transactions or processes occur during the term of the insurance policy (each constituting a
‘change in control’) in respect of the insured:
_ the insured ceases to exist as a result of a merger or consolidation, unless the merger or consolidation occurs between two
insured parties, or
_ another company, person or group of companies or persons acting in consent, who are not insured parties, acquire more than
50% of the insured’s outstanding equity or more than 50% of its voting power (resulting in the right to control the voting power
represented by the shares and the right to appoint the Management Board members of the insured),
then the insurance cover under this policy remains in full force and effect for claims relating to unlawful acts committed or alleged
to have been committed before this change in control took effect. However, no insurance cover is provided for claims relating to
unlawful acts committed or allegedly committed after that time (unless the insured and insurer agree otherwise). The premium for
this insurance cover is deemed to be completely earned.
In the event that a subsidiary ceases to be a subsidiary during the insurance period, the insurance cover under this policy shall
remain in full force and effect for that entity for the remainder of the insurance period or (if applicable) until the end of the
extended discovery period, but only in respect of claims brought against an insured in relation to unlawful acts committed or
alleged to have been committed by the insured during the existence of this entity as a subsidiary. No insurance cover is provided for
claims brought against an insured in relation to unlawful acts committed or allegedly committed after this entity ceased to exist.
COOPERATION BETWEEN ERSTE GROUP BANK AG AND VIENNA INSURANCE GROUP (VIG)
Erste Group Bank AG and Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) are parties to a general distribution
agreement (the Agreement) concerning the framework of the cooperation of Erste Group and VIG in Austria and CEE with respect
to bank and insurance products. Originally concluded in 2008 (between Erste Bank der österreichischen Sparkassen AG and
Vienna Insurance Group der WIENER STÄDTISCHE Versicherung AG), the Agreement was renewed and extended in 2018 until
the end of 2033. The objective for the renewal and extension in particular was to adapt the Agreement to the corporate
restructuring of the original parties, to amend some commercial parameters and to align the Agreement with recent developments
in the legal framework. Already in the original Agreement the parties stipulated that both parties have the right to terminate the
Agreement in case of a change of control of one of the parties. In case of change of control of Erste Group Bank AG, VIG has the
right to terminate the Agreement. In case of change of control of VIG, Erste Group Bank AG has the reciprocal right. A change of
control is defined, with respect to Erste Group Bank AG, as the acquisition of Erste Group Bank AG by any person/entity other
than DIE ERSTE österreichische Spar-Casse Privatstiftung or Austrian savings banks of 50% plus one share of Erste Group Bank
19
AG’s shares or voting rights. In respect to VIG, the aforementioned provisions apply analogously, except for share purchases by
Wiener Städtische Wechselseitiger Versicherungsverein – Vermögensverwaltung – Vienna Insurance Group.
Apart from this regulation on the termination of the Agreement, the parties agreed in the renewal and extension of the Agreement
for an additional termination for cause if based on new legal or regulatory provisions, the continuation of the Agreement is
unreasonable for each or both of the parties.
Erste Group Bank AG and VIG are furthermore parties to an asset management agreement, pursuant to which Erste Group
undertakes to manage certain parts of VIG’s and its group companies’ securities assets. In case of a change of control (as described
above), each party has the termination right. The asset management agreement has been renewed and extended until 2033
concurrently with the renewal and extension of the Agreement outlined above.
9. Indemnification agreements
In the event of a public takeover offer, there are no compensation agreements between Erste Group Bank AG and its Executive
Board and Supervisory Board members or employees.
(Consolidated) Non-financial statement
Basis of preparation
Erste Group applies the provisions of the Austrian Commercial Code (UGB) in accordance with § 908 (2b) UGB in the version
applicable before the entry into force of the Sustainability Reporting Act (NaBeG, BGBl I Nr.6/2026). Pursuant to § 243b and § 267a
(previous version) of the Austrian Commercial Code (UGB), Erste Group Bank AG is required to include a (consolidated) non-
financial statement in its consolidated management report as of 31 December 2025.
Erste Group Bank AG relies, in accordance with § 267a (5) UGB (previous version), on the European Sustainability Reporting
Standards (ESRS) as a Union-based framework for the preparation of its (consolidated) non-financial statement for the 2025
financial year, and therefore includes a sustainability statement in its consolidated non-financial statement within the consolidated
management report. This also includes the disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (EU Taxonomy).
Any additional information required by §§ 243b, 267a (previous version) of the Austrian Commercial Code (UGB) which is not
covered by the sustainability statement is presented in the chapter ‘Additional information pursuant to §§ 243b, 267a of the
Austrian Commercial Code (UGB) (previous version)’; this specifically comprises selected information and KPIs referring to Erste
Group Bank AG on a non-consolidated basis as presented in previous years.
Additional information pursuant to §§ 243b, 267a of the Austrian Commercial Code (UGB) (previous
version)
Matters not covered by the Sustainability Statement
As ESRS reporting follows the double materiality assessment, certain matters required to be reported in the non-financial statement
are not covered by the sustainability statement.
Selected information and KPIs referring to Erste Group Bank AG on a non-consolidated basis
Whereas sustainability matters related to Erste Group Bank AG are fully reflected in the sustainability statement, information in
the sustainability statement is, in accordance with ESRS 1.54, disaggregated at entity level only if required for a proper
understanding of material impacts, risks and opportunities.
The following KPIs relating to social and employee matters, presented in previous years under GRI 2021, relate to Erste Group
Bank AG on a stand-alone basis:
Workforce by age group

| Total | <30 years | 30-50 years | >50 years
2025 | Women | Men | Others | Number | in % | Number | in % | Number | in %
EGB | 1,010 | 1,073 | 0 | 307 | 14.70% | 1,101 | 52.90% | 675 | 32.40%

20

| Total | <30 years | 30-50 years | >50 years
2024 | Women | Men | Others | Number | in % | Number | in % | Number | in %
EGB | 991 | 1,065 | 0 | 289 | 14.10% | 1,161 | 56.40% | 606 | 29.50%

Sick leave days per employee

| 2024 | 2025
EGB | 4 | 5

21
Sustainability Statement
Table of contents

Sustainability Statement ........................................................................................................................................................................................................................... | 21
Table of contents ..................................................................................................................................................................................................................................... | 21
General information .................................................................................................................................................................................................................................... | 23
Basis for preparation ............................................................................................................................................................................................................................... | 23
BP-1 – General basis for preparation of sustainability statement ........................................................................................................................................... | 23
BP-2 – Disclosures in relation to specific circumstances, time horizons and data methodology for reporting ......................................................... | 23
Governance ................................................................................................................................................................................................................................................ | 25
GOV-1 – The role of the administrative, management and supervisory bodies .................................................................................................................. | 25
GOV-2 – Information and sustainability aspects dealt with by the company’s administrative, management and supervisory bodies ............... | 27
GOV-3 – Integration of sustainability-related performance in incentive schemes ............................................................................................................ | 28
GOV-4 – Statement on due diligence ............................................................................................................................................................................................. | 30
GOV-5 – Risk management and internal controls over sustainability statement ............................................................................................................... | 31
Strategy ...................................................................................................................................................................................................................................................... | 32
SBM-1 – Strategy, business model and value chain ................................................................................................................................................................... | 32
SBM-2 – Interests and views of stakeholders ............................................................................................................................................................................. | 34
SBM-3 – Material impacts, risks and opportunities and their interaction with erste group’s strategy and business model .................................. | 36
Impact, risk and opportunity management ........................................................................................................................................................................................ | 39
IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities ......................................................................... | 39
IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statement ............................................................................... | 45
Environmental information ....................................................................................................................................................................................................................... | 51
EU Taxonomy Disclosures ..................................................................................................................................................................................................................... | 51
Climate change ......................................................................................................................................................................................................................................... | 80
E1 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model ....................................................... | 80
E1-1 – Transition plan .......................................................................................................................................................................................................................... | 84
E1-2 – Policies and transition measures for climate change mitigation and adaptation ................................................................................................... | 85
E1-3 – Actions and resources in relation to climate change mitigation and adaptation ................................................................................................... | 90
E1-4 – Targets related to climate change mitigation and adaptation .................................................................................................................................... | 93
E1-5 – Energy consumption and mix .............................................................................................................................................................................................. | 103
E1-6 – Gross Scopes 1, 2, 3 and Total GHG Emissions .............................................................................................................................................................. | 105
Biodiversity and ecosystems ................................................................................................................................................................................................................ | 115
E4 SBM-3 – Material impact related to biodiversity and ecosystems ................................................................................................................................... | 115
E4-1 – Resilience of Erste Group's strategy and business model in relation to soil sealing ............................................................................................ | 115
E4-2 – Policies related to soil sealing ............................................................................................................................................................................................. | 116
E4-3 – Actions and resources related to soil sealing ................................................................................................................................................................. | 117
E4-4 – Targets related to soil sealing ............................................................................................................................................................................................ | 117
E4-5 – Impact metrics related to soil sealing ............................................................................................................................................................................... | 117
Social information ........................................................................................................................................................................................................................................ | 118
Own workforce .......................................................................................................................................................................................................................................... | 118
S1 SBM3 – Material impacts, risk and opportunities related to own workforce and their interactions with strategy and business model ........ | 118
S1-1 – Policies related to own workforce ...................................................................................................................................................................................... | 120
S1-2 – Processes for engaging with own workforce and workers' representatives about impacts .............................................................................. | 123
S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns ....................................................................... | 125
S1-4 – Taking action on material impacts on own workforce and pursuing material opportunities related to own workforce and effectiveness of those actions .................................................................................................................................................................................................. | 126
S1-5 – Targets related to managing material negative impacts, advancing positive impacts and managing material opportunities .................. | 131
S1-6 – Characteristics of the undertaking's employees ............................................................................................................................................................ | 132
S1-7 – Characteristics of non-employees in the undertaking's own workforce ................................................................................................................. | 133
S1-9 – Diversity metrics ..................................................................................................................................................................................................................... | 134
S1-12 – Persons with disabilities ...................................................................................................................................................................................................... | 134

22

S1-13 – Training and skills development metrics ........................................................................................................................................................................ | 135
S1-16 – Remuneration metrics (pay gap and total remuneration) .......................................................................................................................................... | 135
S1-17 – Incidents, complaints and severe human rights impacts ........................................................................................................................................... | 137
Affected communities ............................................................................................................................................................................................................................. | 138
S3 SBM-3 – Material impact and its interaction with strategy and business model ......................................................................................................... | 138
S3-1 – Policies related to affected communities ......................................................................................................................................................................... | 138
S3-2 – Processes for engaging with affected communities about impacts ........................................................................................................................ | 139
S3-4 – Taking action on material impacts on affected communities and managing the effectiveness of those actions ....................................... | 140
S3-5 – Targets related to advancing positive impacts .............................................................................................................................................................. | 142
Consumers and end-users ..................................................................................................................................................................................................................... | 144
S4 SBM-3 – Material impact and their interaction with strategy and business model ..................................................................................................... | 144
S4-1 – Policies related to consumers and end-users ................................................................................................................................................................ | 144
S4-2 – Processes for engaging with consumers and end-users about impacts ................................................................................................................ | 146
S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns ................................................. | 147
S4-4 – Taking action on material impacts on consumers and end-users and effectiveness of those actions .......................................................... | 147
S4-5 – Targets related to managing material negative impacts and advancing positive impacts ................................................................................ | 149
Governance information ............................................................................................................................................................................................................................ | 151
Business conduct ..................................................................................................................................................................................................................................... | 151
G1-1 – Business conduct policies and corporate culture .......................................................................................................................................................... | 152
G1-3 – Prevention and detection of corruption and bribery .................................................................................................................................................... | 153
G1-4 – Incidents of corruption or bribery ...................................................................................................................................................................................... | 155
G1-5 - Political influence and lobbying activities ........................................................................................................................................................................ | 155

23
General information
Basis for preparation
BP-1 – GENERAL BASIS FOR PREPARATION OF SUSTAINABILITY STATEMENT
This sustainability statement has been prepared in accordance with the European Sustainability Reporting Standards (ESRS) and
the requirements of Article 8 of EU Regulation 2020/852 (EU Taxonomy).
The scope of consolidation of the sustainability statement corresponds to the scope of consolidation of the f inancial statements,
which are prepared in accordance with the International Financial Reporting Standards (IFRS) and presented in Note 70 of the
2025 consolidated financial statements. The information in this statement relates to entities within this consolidation scope.
Metrics provided include information on the upstream and downstream value chain, as appropriate and specified in the respective
text.
To ensure that all material sustainability matters are addressed, Erste Group Bank AG (hereinafter ‘Erste Group’ or ‘the Group’)
conducted a value chain assessment as part of the double materiality assessment (DMA). This materiality analysis helped Erste
Group to identify and assess impacts, risks and opportunities (IROs) across the value chain. Further information on the value chain
and its assessment can be found in the chapter ‘SBM‑1 – Strategy, Business Model and Value Chain.’
Erste Group did not make use of the option to exclude information on intellectual property, know‑how or innovation results, as
there is no such information that requires disclosure.
BP-2 – DISCLOSURES IN RELATION TO SPECIFIC CIRCUMSTANCES, TIME HORIZONS
AND DATA METHODOLOGY FOR REPORTING
Estimation uncertainty and assumptions
Certain disclosed metrics have been calculated using estimates and assumptions. Information on the estimates and data sources,
including potential measurement uncertainties and assumptions, where applicable, is provided in the respective chapters. Erste
Group discloses metrics that incorporate value chain information which has either been sourced directly from counterparties or
derived indirectly through third-party data providers or industry-specific proxies.
A high level of measurement uncertainty due to limitations in data and methodologies relate to the disclosure of GHG emissions.
In Erste Group’s analysis and climate target-setting, estimates have been made using the recognised frameworks available at the
time. Detailed descriptions of the methodological approaches can be found in sections E1-4 and E1-6.
The presentation of EU Taxonomy reporting is subject to uncertainty due to limitations to the availability of information and the
use of third-party data. See the ‘Reporting methodology and underlying assumptions and interpretations’ section within the EU
Taxonomy Disclosures chapter for a description of limitations in data and data quality for EU Taxonomy reporting.
The limitations in the availability of environmental data from Erste Group’s corporate clients and other business relationships may
also have impacted the results of its impact materiality assessment.
Climate-related target setting, alongside the respective actions and policies, require forward-looking parameters over a long-term
horizon. Erste Group’s parameters are based on expectations, projections and estimations, which inherently involve a degree of
uncertainty and risk. This is due to factors such as evolving methodologies, fluctuating market conditions, technological
advancements and challenges in data availability, accuracy, as well as potential regulatory changes. These assessments are subject
to change and should not be considered reliable indicators of future performance. To address these limitations, Erste Group has
implemented an ESG Data Strategy, approved by the Management Board, which defines structured short- and medium-term
actions to enhance ESG data availability. The strategy focuses in particular on strengthening client-level ESG data collection.
Progress against these actions is regularly monitored through internal governance frameworks with the objective of progressively
reducing estimation uncertainty over time.
24
Transitional provisions and phase-in options
_ Erste Group has used the phase-in option under ESRS 1 Appendix C with respect to anticipated financial effects of material risks
and opportunities identified on Erste Group’s financial position and financial performance in future years (SBM-3).
_ Erste Group has used the phase-in option under ESRS 1 Appendix C with respect to anticipated financial effects from material
physical and transition risks and potential climate-related opportunities (E1-9).
_ Erste Group has set GHG intensity reduction targets and, correspondingly, reports progress against these relative targets. Erste
Group does not report associated absolute values for the target years in accordance with ESRS 1.133 (transitional provision
regarding value chain information).
Time horizons
Erste Group uses the following time horizons in accordance with ESRS:
_ short-term: up to 1 year,
_ medium-term: 1 to 5 years,
_ long-term: over 5 years.
Where applicable, any deviations from these time horizons are noted, for example when internal risk processes foresee different
time horizons.
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Governance
GOV-1 – THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY
BODIES
Organisational structure for sustainability topics
Management Board
The Management Board of Erste Group Bank AG (Management Board) has overarching responsibility for managing the
organisation and defining the sustainability strategy, framework, goals and priorities. This includes ensuring the implementation of
the sustainability strategy by allocating adequate resources and controls and preparing the sustainability statement. The
Management Board is also responsible for the process of identifying and managing impacts, risks and opportunities (IROs) and is
periodically informed on the status and milestones achieved.
In 2025, the Management Board was briefed six times on material environmental matters (sustainable financing, climate change
mitigation, Responsible Financing Policy) in the context of board meetings by experts from CEO, CFO and CRO divisions. For
social topics t he gender pay gap was presented to the Management Board and the Remuneration Committee of the Supervisory
Board. The CRO was briefed quarterly on data privacy issues and receives regular reports. There are also ad-hoc meetings with
other board members on these matters.
The Management Board, the Audit Committee and the Strategy and Sustainability Committee of the Supervisory Board were
informed four times about the status and results of the updated double materiality assessment (DMA) by experts from the CEO,
CFO and CRO divisions. The DMA was then acknowledged by the Management Boar d and presented to the Audit Committee.
Supervisory Board
The Supervisory Board is responsible for overseeing the implementation of the sustainability strategy and for approving
fundamental decisions on strategy. To facilitate this, the Supervisory Board has established its own Strategy and Sustainability
Committee. The Supervisory Board and the Audit Committee are tasked with reviewing the Management Report, which comprises
the Sustainability Statement prepared by the Management Board. The Supervisory Board was briefed on material IROs and
informed and consulted in the process of setting, reviewing and adapting targets towards material IROs. The Audit Committee and
the Strategy and Sustainability Committee were briefed eight times on climate related IROs by experts from CEO, CFO and CRO
divisions in 2025.
ESG Governance
ESG is a shared responsibility that spans the entire organisation. ESG governance is led by the CEO, CFO and CRO, ensuring it is
firmly embedded in daily operations. This structure fosters close collaboration with individual business units and facilitates
ongoing dialogue with key stakeholders across the Group. Respective responsible B-1 ensure organisational and functional
alignment on the topics regarding ESG. Experts across various departments contribute to the development of the sustainability
strategy and ensure its consistent implementation throughout the organisation. The ESG organisational set-up and governance
structures are subject to regular review to ensure ongoing compliance with applicable legal and regulatory requirements.
Local management boards
The management boards (of CSRD-reporting obligated entities) discuss environmental, social and governance IROs within their
board meetings. They ensure the local adoption of sustainability-related strategies and develop a tailored catalogue of measures to
implement these strategies, taking into account regional specifics. The management boards further support and implement
activities to achieve the sustainability targets that have been set, including approving a dedicated local budget for sustainability
matters when necessary. Discussions between the local and the Group management board s also occur on a regular basis, at least
once a year.
Composition of the bodies, skills and expertise
Management Board
The Management Board of Erste Group Bank AG consists of five members. For 2025, the average ratio of female to male
Management Board members is 20.00% (2024: 18.33%).
Peter Bosek, the Chief Executive Officer (CEO) and Chief Retail Officer (CRetO), has led various departments focused on real
estate, housing and retail business. He served on the Management Board of Erste Bank der oesterreichischen Sparkassen AG and
Erste Group Bank AG until December 2020. Before his appointment as CEO and CRetO of Erste Group Bank AG, he was CEO of
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Luminor Bank AS in Estonia, focusing on business development, profitability, brand building, governance and technology
modernisation.
Stefan Dörfler, the Chief Financial Officer (CFO), has held various leadership positions, including the role as Head of Group
Markets and Capital Markets. He served as CEO of Erste Bank der oesterreichischen Sparkassen AG from 2016 to June 2019 and
was responsible for corporate business, commercial real estate, social banking and the public sector. He is also a member of the
Expert Council at AfB, a charitable organisation dedicated to creating jobs for people with disabilities.
Alexandra Habeler-Drabek, the Chief Risk Officer (CRO), has held various leadership roles in credit risk, restructuring and
workout at Creditanstalt (later UniCredit Bank Austria AG). At Erste Group, her positions included CRO of Erste Bank der
oesterreichischen Sparkassen AG, Head of Group Enterprise-Wide Risk Management at Erste Group Bank AG and CRO at
Slovenská sporiteľňa, a.s. She is also a member of the Presidium at UNICEF Austria.
Ingo Bleier, the Chief Corporates and Markets Officer (CCMO), has held various leadership roles in corporate banking, project
finance and loan syndication at Creditanstalt and later at UniCredit Bank Austria AG. Since 2008, he has held management
positions at Erste Group Bank AG, overseeing corporate and acquisition finance, investment banking and group corporates. He is
responsible for the customer segments large corporate, commercial real estate (CRE), small and medium-sized enterprises (SME),
financial institutions and the public sector.
Maurizio Poletto, the Chief Platform Officer (CPO) and Chief Operating Officer (COO), initially gained experience as a designer
and art director before successfully founding and leading his own company as creative director. At Erste Group, Maurizio Poletto
founded the in-house fintech George Labs GmbH and has been actively involved in the development and expansion of George for
about 10 years. Through his roles, he contributes to the strategic direction and oversight of this institution, ensuring adherence to
high standards of governance, while his efforts in promoting innovation and technology support social development by enhancing
financial services and accessibility.
Supervisory Board
The Supervisory Board of Erste Group Bank AG consists of 18 members. Six members are employee representatives delegated by
the employees’ council, ensuring active participation in the employer’s supervisory bodies. For 2025, the average ratio of female to
male Supervisory Board members is 55.34% (2024: 55.09%). In accordance with the definition of independence as stated in the
Austrian Corporate Governance Code, the average ratio of independent members is 91.60% (2024: 91.72%).
The Supervisory Board members are carefully evaluated for their suitability before appointment, based on the requirements
applicable to credit institutions. When appointing members to the Supervisory Board, care is taken to ensure that the Supervisory
Board as a collective body possesses, in its entirety, the necessary knowledge, skills and professional experience required for the
proper performance of its duties, including Erste Group’s sustainability matters and their associated IROs.
Sustainability-related expertise
The Management Board and the Supervisory Board have access to various sources of specialist expertise from all the bank’s
specialist areas, for example through ongoing external and internal training courses in which they participate. The boards also have
access to the relevant expertise through their representation in the Risk Committee and Strategy and Sustainability Committee. In
2025, a mandatory web‑based ESG training was rolled out across the Group to all employees, including board members,
strengthening the overall sustainability competence within Erste Group. The individual members of the Management Board are
briefed through direct reporting lines from senior management as well as through regular board meetings. In addition to the
specialist expertise within Erste Group, external consultants may be engaged for specific topics to provide additional support and
further enhance the governance and strategic oversight within Erste Group.
Due to the professional background and experience of the individual members, the Supervisory Board has in-depth knowledge of
key sustainability issues such as sustainable investments, the legal framework and legal developments on sustainability issues,
employee concerns, corporate governance and sustainability reporting. The Supervisory Board continually updates and expands its
professional expertise in this area through ongoing further education and training as well as exchanges with experts. This includes
the training course on ‘Implementing the EBA Guidelines on the Management of ESG Risks’. The members of the Management
and Supervisory Board also completed the 2025 FMA webinar on sustainable finance for management and supervisory bodies.
For further details on how specific IROs are overseen and managed within the Group, please refer to chapter ‘GOV-2 – Information
and sustainability aspects dealt with by the company’s administrative, management and supervisory bodies’. For more general
information on the composition and working procedures of the corporate bodies and the expertise of the Supervisory Board
members, please refer to the related chapters in the separate Corporate Governance Report of Erste Group.
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Gender diversity targets
Erste Group is committed to constantly progress towards a gender-balanced management on all levels. The Nomination Committee
of Erste Group Bank AG has set a minimum target of 30% by 2028 for the underrepresented gender for the Management Board and
Supervisory Board of Erste Group Bank AG as the holding entity (separately). While not falling below this minimum, the gender
targets for local bank subsidiaries shall be adapted to local regulatory requirements and shall be approved by the respective
Nomination Committee or Supervisory Board. Currently, all local banks in Erste Group’s core markets approved a harmonised
target of 30% for the underrepresented gender until 2028 for the local management boards and the local supervisory boards.
GOV-2 – INFORMATION AND SUSTAINABILITY ASPECTS DEALT WITH BY THE
COMPANY’S ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
To ensure continuous progress and transparency in sustainability, Erste Group has developed an ESG KPI Dashboard that enables
regular monthly performance monitoring of key sustainability metrics. This includes sustainable financing volumes across various
business lines, financing activities and GHG emissions and decarbonisation KPIs on a group level. The Management Board is
informed at least quarterly about environmental IROs, through the ESG KPI Dashboard. For other IROs, such as those for Own
Workforce, Consumers & End-users and Business Conduct, information is provided to the management on demand.
Key insights and findings are further reported through the Sustainable Financing Report, provided monthly via an online reporting
platform to all bank internal ESG stakeholders including local board members. This reporting structure ensures alignment with
decarbonisation targets and supports decision-making at all organisational levels. Additionally, quarterly reviews and signoffs of
decarbonisation figures are conducted. Detailed reviews are also regularly performed in the Corporates & Markets board, where
progress toward targets and the development of transactions that are still in progress are thoroughly assessed.
All IROs identified as material in the DMA were discussed with and acknowledged by the Management Board and presented to the
Audit Committee. For a list of all material IROs, please refer to the list in chapter ‘SBM-3 – Material impacts, risks and opportunities
and their interaction with Erste Group’s strategy and business model’.
Policy governance
The CEO is responsible for central functions, including sustainability matters related to the Own Workforce. The CFO oversees
finance, while the COO handles IT and banking services. Risk management, including environmental risks, falls under the CRO’s
responsibility. The respective functions give rise to responsibilities for policies, which are described in the following chapters in
connection with the key sustainability matters and their related IROs. Although the Group Management Board holds overall
responsibility for a unified strategy and framework, each local management board is tasked with implementing these policies,
taking into account their specific circumstances.
Erste Group has procedures in place to manage IROs and integrate them into the company’s structure. The following examples
show how IROs are managed within the group.
Policy governance for t he identified climate change mitigation IROs
As a leading financial institution in Central and Eastern Europe, Erste Group plays a pivotal role in accelerating the real economy’s
transition. Achieving a low‑carbon future requires coordinated action across the financial system and industry, and Erste Group is
committed to driving this transformation by steering capital toward climate‑positive solutions and supporting clients in
decarbonising their business models. Through this approach, we actively enable climate‑change mitigation across the region. The
reduction of financed CO₂-emissions is a shared responsibility and lies with the CRO, CCMO and CRetO.
Erste Group’s Group Responsible Financing Policy establishes industry‑specific ESG exclusion and phase‑out criteria that prioritise
climate‑change mitigation, setting clear thresholds and guidelines to determine transaction eligibility in carbon‑intensive sectors.
By directing financing away from high‑emission activities and toward lower‑carbon alternatives, the Policy reduces ESG‑related
credit and reputational risks while supporting the transition to a net‑zero economy. It also defines non‑financial risk profiles that
trigger enhanced risk management support, and outlines sector‑specific assessment procedures to ensure informed
decision‑making aligned with Erste Group’s commitment to responsible, climate‑aligned financing. Responsibility for this policy
lies within Credit Portfolio Steering (CRP).
CRP, a division within the CRO area of Erste Group Bank AG, establishes the framework and provides guidance to all entities
covered by the Group Responsible Financing Policy. The policy was most recently updated in 2025 and approved by the
Management Board in October 2025.
Local boards are responsible for the implementation of the policy on subsidiary level. At Holding Level, the Policy Owner is
represented by the ESG Function within Credit Risk Portfolio, which is also responsible for the Policy’s content and alignment with
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Erste Group’s financing principles. At Local Level, the Policy Owner is represented by the respective local ESG function. Regular
communication between Group and Local Policy Owners ensures a mutual understanding and operationalisation of the Policy
across Erste Group.
Policy governance for the identified gender equality IRO
Group Diversity Management (GDM) supports the implementation of the overall strategy by developing a comprehensive
communication strategy for Erste Group’s diversity impact and by serving as a source of expertise for both Erste Group’s
management and local Diversity Management (LDM) teams. In addition, GDM provides support and guidance to diversity-related
Employee Resource Groups (e.g., Erste Women’s Hub, Erste Colours, Erste Ability).
GDM is organised as a Group function within the CEO division of Erste Group Bank AG. GDM provides a framework and guidance
to all entities within the scope of the Group Diversity & Inclusion Policy. Embedded in the Group People & Culture division, GDM
collects group-wide diversity data, identifies key focus areas and develops a diversity strategy in close collaboration with relevant
stakeholders (such as LDM and Group Communications & Corporate Affairs). GDM develops diversity targets and provides
diversity data for reports, rating agencies and communication on Group level. The Management Board engages in active dialogue
with GDM on Erste Group’s diversity impact and supports implementation of group-wide activities to promote diversity and
inclusion.
LDM acts as a focal point for the diversity impact of each bank subsidiary. While GDM defines the diversity strategy, LDM adapts
measures, trainings and the Group Diversity & Inclusion Policy to suit local circumstances. Regular communication between GDM
and LDM ensures a mutual understanding of the diversity impact across Erste Group.
The Management Board discusses the progress of diversity targets with local management boards in Erste Group’s core markets on
a regular basis - at least annually - and also monitors the Group’s overall diversity targets. The local management boards are
responsible for the implementation of the policy on a subsidiary level.
GOV-3 – INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE
SCHEMES
Erste Group is committed to a remuneration system that integrates sustainability matters. The Group Remuneration Policy for
Erste Group Bank AG outlines the structure and criteria for compensating members of the Management Board and Supervisory
Board. No variable remuneration is paid to members of the Supervisory Board.
For the Management Board, variable remuneration is capped relative to the amount of fixed remuneration with a maximum of
100% (bonus cap). This variable remuneration is granted and paid based on specific, measurable performance criteria that align
with Erste Group’s business strategy and long-term development. These criteria are annually assessed by the Remuneration
Committee of the Supervisory Board of Erste Group Bank AG.
Variable remuneration is structured to include both upfront and deferred payments. For amounts exceeding EUR 150,000, 60% of
the variable remuneration is deferred, while for amounts below this threshold, 40% is deferred. At least half of both the upfront and
deferred remuneration is delivered in the form of non-cash instruments, such as shares (Performance Share Units, PSUs), with the
remaining portion paid in cash. The Group Remuneration Policy also includes malus and clawback provisions in accordance with
EBA guidelines.
Components of the remuneration of the members of the Management Board

Type/components | Elements | Method of payment | Features
Fixed remuneration |  |  |
Base salary |  | Cash | – Consideration of the area of responsibility of the respective board member – Promoting cooperation within the board
Other remuneration | Pension fund | Assumption of contributions by the company | – Defined contribution pension plan via an external pension fund – Severance fund (Mitarbeitervorsorgekasse)
Insurances | Assumption of contributions by the company | – Risk insurance against occupational disability and in case of death – Risk accident insurance
Other | Cash or benefits in kind | – Any annual leave payments – Possible one-time sign-on bonus – Benefits in kind, e.g. company car incl. driver, employee shares

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Type/components | Elements | Method of payment | Features
Variable remuneration |  |  |
Upfront remuneration (40%) | Upfront cash payments (50% of the upfront portion) | Cash payment in the subsequent fiscal year | – Alignment with the fulfillment of certain comprehensible performance criteria in line with business strategy and long-term development of Erste Group – Consideration of targets at group and/or individual institution level and – Consideration of individual targets
Upfront non-cash component (50% of the upfront portion) | Equity settlement with consideration of the retention period
Deferrals (60%) For variable remuneration amounts exceeding EUR 150,000 | Deferred cash payments (50% of the deferrals) | Cash payment from the third following fiscal year in 3 annual tranches
| Deferred non-cash component (50% of the deferral) | Equity settlement with consideration of deferral and retention periods

ESG related targets are in line with the main pillars of the sustainability strategy of Erste Group. Erste Group’s primary impact on
the environment and biodiversity lies in its lending activities and the resulting financed emissions. As a financial institution, it is
therefore its role to contribute to the transition towards a low-carbon economy by engaging with its clients and supporting them
along their decarbonisation pathway. Measurable ESG targets, aligned with Erste Group’s objectives, are suggested by experts of the
CEO, CFO and CRO division and approved by the Supervisory Board (in accordance with legal requirements, Supervisory Board’s
resolutions on remuneration are prepared by the Supervisory Board’s independent Remuneration Committee). These targets are
translated into individual Management Board member targets forming a significant part of the variable remuneration system of the
Management Board.
In 2025, 15% (2024: 15%) of the relevant Management Board members’ variable remuneration was based on ESG criteria (including
10% ESG targets out of which 1/3 to 2/3 with climate related considerations).
Performance on ESG related targets is assessed on a 5-point rating scale, which experts of CEO, CFO and CRO division then
evaluate at the end of the performance period. The results of this evaluation are reviewed and approved by the Remuneration
Committee, who subsequently informs the Supervisory Board.
ESG targets for Management Board members may include, but are not limited to, maintaining a strong ESG performance,
supporting the sustainable transition i.e. Sustainable financing and Net Zero transition.
In 2025, the ESG targets (10%) for Management Board members included two overarching targets, which are not directly linked to
any specific sustainability matter:
_ Maintaining a good ESG performance for Erste Group is shared by the CEO/CRetO, CFO, CRO and CCMO and is assessed by
external ESG ratings (MSCI, ISS ESG, SUSTAINALYTICS, CDP). Except for CDP, which focuses on climate impact, the other
three ESG rating agencies measure the environmental, social as well as governance related performance of companies as well as
their ability to manage ESG risks.
_ Implementation of the ECB ESG Action Plan is assigned to the CRO.
Further, the following ESG targets, which will be explained in more detail in the relevant chapters were assigned to Management
Board members:
_ Supporting the portfolio net zero transition (net zero target setting) is shared by CFO and CCMO (see chapter E1-4).
_ Strategic sustainability agenda, climate strategy and targets of Erste Group are assigned to the CEO.
_ CSRD sustainability reporting is assigned to the CFO.
_ Increasing sustainable retail mortgages (target volume of new sustainable retail mortgages) is assigned to the CRetO (see chapter
E1-4).
_ Increasing sustainable corporate financing (target volume of new sustainable corporate financing) is assigned to the CCMO (see
chapter E1-4).
_ Increasing zero-carbon electricity sourcing is assigned to the CFO (see chapter E1-4).
In addition, all Management Board members have a diversity target with 5% weight which is part of the leadership evaluation.
Note: Erste Group’s target volume of Sustainable Financing and retail mortgages are determined according to the criteria described
in E1-4 and must not be confused with the Green Asset Ratio (GAR) KPI under the EU Taxonomy.
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GOV-4 – STATEMENT ON DUE DILIGENCE
Erste Group’s Code of Conduct illustrates how its policies and processes are aligned with international instruments that respect
human rights, with reference to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for
Multinational Enterprises as a basis. Through the Code of Conduct, these international instruments are also incorporated into Erste
Group’s policies and processes to ensure that all Erste Group operations are undertaken with the highest standards of ethical
behaviour and respect for human rights.
Erste Group has firmly embedded the concept of sustainability into its business strategy, relying on sustainable, value-driven and
responsible practices to generate stable long-term returns for all stakeholders. As a financial institution operating across diverse
sectors, Erste Group recognises that its activities impact the environment or society. To address these impacts, Erste Group applied
continuous due diligence processes throughout the Double Materiality Assessment to identify actual and potential negative impacts
on the environment and society, as well as in the policies and processes to prevent, mitigate and manage them.
The table below provides a mapping that addresses the core elements of Erste Group’s due diligence process and explains how and
where its application of the main aspects and steps of the due diligence process are reflected in the sustainability statement. Those
core elements include embedding due diligence in governance, strategy and business model, engaging with affected stakeholders,
identifying and assessing adverse impacts, taking actions to address those adverse impacts and tracking the effectiveness of those
efforts and communicating. This allows the actual due diligence practices of the undertaking to be depicted.
Core elements of due diligence

Core elements of due diligence | Paragraphs in the sustainability statement
a) Embedding due diligence in governance, strategy and business model | ESRS 2 GOV-2 – Information and sustainability aspects dealt with by the company’s administrative, management and supervisory bodies
ESRS 2 GOV-3 – Integration of sustainability-related performance in incentive schemes
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with Erste Group’s strategy and business model
b) Engaging with affected stakeholders in all key steps of the due diligence | ESRS 2 GOV-2 – Information and sustainability aspects dealt with by the company’s administrative, management and supervisory bodies
ESRS 2 SBM-2 – Interests and views of stakeholders
ESRS 2 IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities
E1-2 – Policies and transition measures for climate change mitigation and adaptation
S1-1 – Policies related to own workforce
S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts
S3-1 – Policies related to affected communities
S3-2 – Processes for engaging with affected communities about impacts
S4-1 – Policies related to consumers and end-users
S4-2 – Processes for engaging with consumers and end-users about impacts
G1-1 – Business conduct policies and corporate culture
c) Identifying and assessing adverse impacts | ESRS 2 IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities
d) Taking actions to address those adverse impacts | E1-3 – Actions and resources in relation to climate change mitigation and adaptation
S1-4 – Taking action on material impacts on own workforce and approaches to managing material risks and pursuing material opportunities related to own workforce and effectiveness of those actions
S3-4 – Taking action on material impacts on affected communities and managing the effectiveness of those actions
S4-4 – Taking action on material impacts on consumers and end-users and effectiveness of those actions
e) Tracking the effectiveness of these efforts and communicating | E1-4 – Targets related to climate change mitigation and adaptation
S1-5 – Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities
S3-5 – Targets related to advancing positive impacts
S4-5 – Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities

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GOV-5 – RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY
STATEMENT
The three main risks in the sustainability reporting process are 1) including errors in reporting, such as inaccuracies in both
quantitative and qualitative data, 2) reporting on irrelevant information, such as including non-material information that does not
significantly impact stakeholders, as well as 3) omitting relevant information, such as failing to disclose material information that is
important for stakeholders. These risks are also valid for value chain data.
To mitigate against these risks, Erste Group implements four main mitigation measures. The first measure involves internal
controls for quantitative data. Many of the same internal controls and processes used for financial reporting are also applied to
quantitative data in sustainability reporting. This includes the 4-eyes principle and data validation to minimise errors.
The second measure includes internal controls for qualitative data, including the 4-eyes principle which also applies to quantitative
data. Further, the review steps outlined in the the first measure ensure the accuracy and relevance of qualitative data. This includes
multiple internal feedback loops, a management review and external consulting to continuously improve the assessment of
qualitative data.
The third mitigation measure is the Double Materiality Assessment (DMA). This comprehensive assessment was carried out in
collaboration with an external consultant to ensure that the information presented is relevant and material. This helps in avoiding
the reporting of irrelevant information and ensures that all significant aspects are covered. Further information regarding the DMA
can be found in chapter ‘IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities’.
The fourth mitigation measure is the relevance analysis. This analysis is based on the results of the DMA and identifies the
mandatory and material disclosure requirements and data points following the ESRS that are subsequently disclosed in the
sustainability statement.
In 2025, Erste Group implemented a new disclosure management tool to further improve the reporting process for the
sustainability statement, as well as mitigating the aforementioned risks. These improvements in control measures result in
increased efficiency and control of the reporting process that include:
_ granular user rights and permissions that can be granted per section/chapter,
_ clear documentation of changes,
_ approval of tracked changes being restricted to document owners.
Furthermore, there is improved data integration from various sources that are directly uploaded to the disclosure management tool
as well as dynamic linking. This dynamic linking means that once the data has been uploaded, it refreshes across the entire
document to ensure consistency and accuracy.
Future considerations will result from risk management and the internal control system and be used to continuously improve the
sustainability reporting process. This means refining internal controls, enhancing data validation procedures and conducting
regular assessments to ensure the relevance and accuracy of reported information. Furthermore, feedback from internal reviews,
external consultants and auditors will be incorporated into future reporting cycles to address any identified gaps or areas for
improvement.
The Management Board and Audit Committee are informed of the findings of the risk assessment for sustainability reporting on an
annual basis. The sustainability statement is presented to the Supervisory Board for approval.
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Strategy
SBM-1 – STRATEGY, BUSINESS MODEL AND VALUE CHAIN
Erste Group’s business model
Erste Group has an extensive market presence in Austria, Czechia, Slovakia, Romania, Hungary, Croatia and Serbia. Erste Group’s
business model centres around retail and corporate banking, encompassing a wide array of services from lending, deposits and
investments to current accounts and credit cards. With a customer base exceeding 16 million across its markets, the bank caters to
various costumer groups, providing tailored services to meet the specific needs of its clients.
Erste Group’s position in its markets makes it one of the major providers of finance to local businesses, including large companies,
real estate companies and to the public sector. While Erste Group’s roots are in the retail small & medium-sized enterprises (SME)
business, Erste Group has taken account of its role and responsibility and has firmly embraced corporate and public sector lending
as part of its business model.
For further information on the business segments of Erste Group refer to Note 1 in the consolidated financial statement. For further
information on the headcount of employees by geographical area of Erste Group refer to chapter ‘S1-6 - Characteristics of the
undertaking’s employees’.
Erste Group’s sustainability strategy
Since its foundation Erste Group has been pursuing the goal defined in the Statement of Purpose, namely, to promote and secure
prosperity for all people throughout the region. This is why Erste Group has incorporated key ESG themes into the business
strategy. Erste Group believes that this is the only way to be successful over the long term, working towards a fairer and more
inclusive society.
Erste Group’s sustainability strategy centres on two main pillars, supporting the green transition and promoting social inclusion:
Supporting the green transition
Erste Group’s primary impact on the environment lies in its lending activities and more precisely, the resulting financed emissions.
As a financial institution, it is therefore its role to contribute to the transition towards a low-carbon economy by engaging with its
clients and supporting them along their decarbonisation pathway while facing evolving challenges, such as policy uncertainty, both
on country and European level. Erste Group believes this to be the most important lever to help fostering a green transition.
As part of the environmental pillar of its sustainability strategy, Erste Group:
_ has the ambition to achieve a net-zero status of Erste Group’s portfolio by 2050,
_ wants to achieve a net-zero status in banking operations by 2030 and
_ maintains a strong role in sustainable financing across CEE by funding climate action and adaptation.
Promoting social inclusion
Erste Group’s social impact involves its interactions with employees, customers and the broader community while establishing and
maintaining good ethical compliance for building trust with stakeholders and ensuring long-term organisational stability.
As part of the social pillar of its sustainability strategy, Erste Group:
_ boosts financial inclusion with social banking, bringing communities closer together and strengthening social cohesion,
_ helps customers gain financial health and literacy,
_ promotes diversity, including gender diversity and
_ fosters good ethical conduct and compliance, e.g. through extensive corruption and bribery prevention and detection trainings.
Significant markets and customer groups
Erste Group’s sustainability strategy is focused on its significant markets and customer groups and has detailed approaches
customised for each of them. More information on the set targets relating to the strategic priorities can be found in the respective
chapters.
Retail
In the Retail segment, most of the environmental impact stems from the buildings sector, which includes energy used for
constructing, heating, cooling and lighting homes and businesses, as well as the appliances and equipment installed in them. These
factors account for over one third of global energy consumption and emissions. Within Erste Group and particularly in Austria,
retail mortgages contribute a large share of total assets. Erste Group has adopted an ambition that supports the decarbonisation of
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the housing sector while safeguarding affordability, inclusion and access to finance. As regulatory frameworks evolve and
government incentives strengthen, the Group will reassess its ambition level to ensure continued alignment with the broader
transition of the real estate sector.
For achieving the decarbonisation targets for the retail mortgage portfolio, Erste Group will adopt the following approach:
Technological possibilities to decarbonise. A significant part of the buildings stock in the Erste Group region is not yet ‘climate-
proof’ due to old age of the buildings and poor insulation. An improvement can only be achieved through changes in customer
behaviour, which can be influenced in the short-term by cost considerations and in the mid and long-term through regulations and
availability of government subsidies across all countries Erste Group is active in, which will foster further investments and
improvements.
Product offering. In the retail mortgages segment, sustainable mortgage loans have been developed and new products for
renovation projects have been designed to improve the energy efficiency of buildings. Erste Group actively offers locally available
subsidized loans for renovation purposes in all countries. To help customers meet the challenges involved in building renovation,
Erste Group has developed various measures in Austria, Czechia and Croatia such as digital renovation and energy calculators, as
well as an in-house team of experts to assist and advise customers on a wide variety of matters relevant to building renovation
projects.
Insurance linked services, either bundled with financing products or standalone, will be part of Erste Group’s overall ESG
proposition. Cooperation with the Vienna Insurance Group contributes to closing the gap of insurance coverage for certain natural
hazard risks, such as river floods.
Corporates
Each of Erste Group’s four business lines (SME, Large Corporates, Public Sector and Commercial Real Estate (CRE)) covers a
distinct customer type with unique needs and preferences and hence specific sales and service models.
Approach for decarbonisation. The implemented approach for corporate business is designed to support the achievement of
Erste Group’s ambition to achieve a net zero status of its portfolio by 2050, as it consists of performing an initial client transition
readiness assessment via an ESG Assessment Questionnaire and an in-depth client engagement process with identified clients
while evaluating financing needs. Erste Group understands its diverse customer base and is determined to help customers find a
tailored approach, fitting to their needs.
Product offering. Erste Group’s ambition includes helping clients to realise the benefits of decarbonisation by supporting cost-
effective action. Erste Group offers specific purpose financing and advisory services focused on climate solutions, including
renewable energy projects, high-efficiency buildings in commercial real estate and sustainable transportation solutions.
Erste Group wants to be the bank that provides financing across CEE to enable the net zero transition. Therefore, Erste Group is
constantly in touch with its customer base as the main stakeholder, to better understand their needs. For further information on
the stakeholder engagement, please refer to chapter ‘SBM-2 - Interests and views of stakeholders’.
Erste Group’s value chain composition
As a bank, Erste Group’s value chain encompasses the inflow and outflow of money, facilitating payments and transactions. The
bank transforms clients’ savings and investments by making the cash available as loans while simultaneously managing the
associated risks. Key business actors include Erste Group’s clients, both private individuals and corporations, who benefit from
Erste Group’s services offered through digital and direct distribution channels.
For the value chain assessment, Erste Group aims to reflect the interests and views of affected stakeholders, as well as users of
sustainability statement which are further described in chapter ‘ SBM-2 - Interests and views of stakeholders ’. Moreover, for the
identification and assessment of impacts, risks and opportunities (IROs), special consideration was given on the upstream and
downstream value chain to ensure completeness of the relevant IROs. In this context, Erste Group analysed the flow of activities,
processes and value creation within the organisation.
In the context of the double materiality assessment (DMA), Erste Group is currently limited in considering all aspects of the value
chain due to data availability constraints. Therefore, the focus has been on the direct business relationships. With the
implementation of EU legislation (e.g., CSRD reporting, CSDDD), Erste Group expects these limitations to be addressed, leading to
more detailed value chain information in the future.
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Upstream
The upstream value chain includes the goods and services procured by Erste Group, such as IT services, office supplies, property
and infrastructure, consultancy and other external services that support the bank’s operations. Erste Group conducted an in-depth
review of the costs related to purchased goods and services in the year prior to the DMA. The total expenditures were categorised by
sourcing categories from Erste Group’s procurement system, with main expenditures considered for detailed assessment. These
categories included IT services, infrastructure software, marketing, property management, consulting and personnel management
expenditures. For each expenditure category, Erste Group assessed the potential sustainability matters and IROs. For example, IT
services were included in the assessment for Climate Change (E1) due to their high energy consumption, while consulting services
were considered in the assessment of Workers in the Value Chain (S2). The insights from these assessments were included in the
overall evaluation.
Own operations
The assessment of Erste Group’s own operational activities, including workforce management and office branches, was based on
the full scope of consolidated entities under IFRS. Additionally, it was evaluated whether Erste Group has operational control over
not fully consolidated entities. All aspects of own operations were considered in the assessment. While environmental impacts from
own operations were few, material IROs were identified in the areas of Own workforce (S1), Consumers and end-users (S4) and
Business conduct (G1). To ensure completeness and accuracy of these impacts, Erste Group closely aligned with the responsible
departments to reflect these effects adequately in the reporting.
Downstream (Portfolio)
Erste Group finances and invests in a diverse range of clients, including corporate and retail customers, institutional investors and
stakeholders involved in its sustainability initiatives. The downstream value chain is subsequently referred to as the portfolio, as all
of Erste Group’s downstream material impacts are linked to it. These conclusions are derived from IROs assessed following the
DMA process and an in‑depth portfolio analysis. This analysis was based on the breakdown of credit exposure and the calculation
of financed emissions. The IROs related to the financed sectors are directly reflected in the materiality assessment. For example, the
highest individual sectoral exposure (real estate) is reflected in the identified material negative impact relating to financed CO 2
emissions of Erste Group.
SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS
Erste Group has gathered relevant information to reflect the interests and perspectives of its stakeholders both in business
processes and in the Double Materiality Assessment (DMA) for the sustainability statement.
As part of the DMA, Erste Group classified its stakeholders into two categories: affected stakeholders and users of the sustainability
statement. These groups are defined as follows:
_ affected stakeholders: retail customers, corporate clients, employees, suppliers and nature,
_ users of the sustainability statement: investors, analysts, rating agencies, supervisory and regulatory authorities, NGOs, potential
future employees and other readers.
For each stakeholder group, at least one internal contact person was identified. These individuals are in regular exchange with the
respective stakeholders, are familiar with their concerns and viewpoints and are able to provide informed insights.
Through individual interviews, the topics relevant to each stakeholder group were identified and systematically documented. This
approach ensured that both the potential and the actual impacts of Erste Group’s business activities on stakeholders, as well as the
risks and opportunities identified by stakeholders of Erste Group, were appropriately considered in the materiality assessment.
The involvement of internal experts who maintain ongoing contact with the respective stakeholder groups proved particularly
valuable in defining the Impacts, Risks and Opportunities (IROs) within the DMA. For instance, the IROs for S1 (Own Workforce)
were defined with employee representatives and the Group People & Culture department.
For further details on the type of engagement, its purpose, implementation and the topics discussed with stakeholder groups, please
refer to the table ‘Key stakeholder engagement’ below.
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Key stakeholder engagement

Key Stakeholders | Why Erste Group engages | How Erste Group engages | Interests and views of key stakeholders | Actions / results of engagement
Customers | Strong engagement with customers enables Erste Group to understand their needs, anticipate market trends and consequently adjust services. | – advisory sessions – conferences and seminars – website – customer experience programme | – improve customer experience – enhance products and services – accelerate innovation and drive digitalisation | Erste Group’s engagement enables a regular assessment of how customer needs can be met through product and service offerings.
Employees | Erste Group engages with employees to foster an environment of open dialogue and provide them with continuously improving opportunities for growth and development. | – employee surveys – Intranet – training, coaching and mentorship – Employee Resource Groups – annual feedback and professional development talks – engagement with works council | – invest in people development – foster diversity, equity and inclusion – promote employee health and work-life balance – increase employee involvement | Erste Group’s engagement enables the targeted adaptation of the people and culture strategy.
Suppliers | Erste Group engages with suppliers to ensure high standards of quality, integrity and compliance throughout the procurement process. | – supplier feedback questionnaire | – smooth and efficient cooperation – simple and streamlined business processes – effective and trustworthy communication | Erste Group’s engagement enables a regular assessment of how supplier expectations are addressed in procurement processes and collaboration.
Nature, represented by academic institutions, environmental and social NGOs | Erste Group conducts content-driven debates with academic institutions as well as environmental and social NGOs (non-government organisations). | – conferences and events – bilateral meetings | – accelerate climate action – mitigate global physical and transition risks – protect biodiversity | Erste Group’s engagement enables identification of current and future priorities from the academic society and reflect them early in the strategic planning.
Investors, analysts and rating agencies | Through engaging with investors and analysts Erste Group aims to foster a clear understanding of company performance and strategy. | – investor presentations and webcasts – bilateral talks – roadshows – conferences | – drive performance and execute strategy for sustainable growth – accelerate climate action – foster diversity, equity and inclusion – enhance risk management to ensure resilience – increase transparency | Erste Group’s engagement increases the level of transparency in external reporting to ensure a clear understanding of the company’s performance and strategy.
Supervisory and regulatory authorities | Erste Group conducts a permanent, pro-active dialogue with national and European supervisory and regulatory authorities to understand supervisory expectations. | – supervisory dialogues | – drive performance and execute strategy for sustainable growth – accelerate climate action – foster diversity, equity and inclusion – enhance risk management to ensure resilience – increase transparency | Erste Group’s engagement enables it to adapt processes and increase the level of transparency to fulfil supervisory expectations.

The key interests of Erste Group’s stakeholders, identified through ongoing engagement, inform and shape the business model. It is
however, often impossib le to attribute amendments to the strategy exclusively to stakeholder views without considering other
factors, such as business needs.
A key consideration for Erste Group’s stakeholder engagement is the respect and promotion of human rights. Erste Group does not
tolerate any form of discrimination, such as discrimination on the basis of gender, age, marital status, family obligations, religion,
political conviction, sexual orientation, race, nationality, social or ethnic background, disability, physical appearance or any other
aspects unrelated to the business.
The Management Board is responsible for managing the organisation to the benefit of the company, considering the interests of the
shareholders and the employees as well as the public. Information on the outcomes of engagement with all stakeholder groups is
provided to the Management Board both informally through meetings with internal stakeholder representatives as well as formally
in board meetings. The Supervisory Board is similarly informed about engagement with key stakeholder groups in dedicated
agenda items in Supervisory Board meetings with internal stakeholder representatives.
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SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION
WITH ERSTE GROUP’S STRATEGY AND BUSINESS MODEL
This chapter gives an overview of Erste Group’s material IROs, resulting from the DMA (see IRO-1 ). In the table below, all material
IROs are listed, based on the sustainability matter they relate to, the type of IRO, the position in the value chain and the time
horizon the materiality has been detected in. Additional information regarding the material IROs and their interaction with Erste
Group’s strategy and business model can be found in the respective topical chapters.

Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
E1-Climate change adaptation | Risk | Erste Group faces a higher credit risk as climate-related physical risks can lead to a devaluation of collateral and/or to negative effects on the business models and lastly financial stability of debtors. The consequences are increased risk provisions for Erste Group and connected negative impacts to its P&L and own funds. | Portfolio | Medium- to long- term
Opportunity | For Erste Group, additional financial opportunities arise from the financing of and investments into companies that offer solutions for adapting to climate change and the funding of adaptation solutions in the real estate market (residential and commercial real estate). | Portfolio | All time horizons
E1-Climate change mitigation | Risk | Erste Group faces a higher credit risk as climate-related transition events (e.g. carbon pricing and regulatory interventions) can lead to negative effects on the profitability of business models and the financial stability of debtors. The consequences are increased risk provisions for Erste Group and connected negative impacts to its P&L and own funds. | Portfolio | All time horizons
E1-Energy | Actual positive impact | By financing renewable energy and energy grid infrastructure, Erste Group promotes CO 2 e-neutral power and supports energy security as well as the transition to a sustainable economy. | Portfolio | All time horizons
Risk | Price instability on the energy market due to climate change can result in decreased profitability in companies in energy-intensive sectors as well as liquidity shortage of retail clients, leading to a higher default risk and a related increase in risk provisions for Erste Group, impacting P&L as well as own funds. | Portfolio | All time horizons
E1-Climate change mitigation and energy | Actual negative impact | Erste Group’s Scope 1, 2 and 3 CO 2 e emissions (from upstream value chain, own operations and financed emissions) contribute to climate change and thus to global warming. | Upstream, Own operations, Portfolio | All time horizons
Opportunity | Erste Group can gain financial opportunities by investing in and financing clients that support decarbonization, transition to sustainability and renewable energy projects (e.g., pumped storage plants, green hydrogen) that support CO 2 e-neutral energy production. | Portfolio | All time horizons
E4-Soil sealing | Actual negative impact | Financing real estate and public infrastructure projects can have a negative impact on biodiversity as soil is sealed and land is degraded, thus causing increased flooding risks, climate change exacerbation and possible health issues caused by decreased air and water quality. | Portfolio | All time horizons
S1-Gender equality and equal pay for work of equal value | Actual negative impact | The current gender pay gap which is mainly caused by gender disparity at different job levels at Erste Group disadvantages female employees. | Own operations | All time horizons
S1-Training and skills development | Opportunity | Tailored trainings and further education with regards to technology and AI improve employee's professional skills and qualifications and increases productivity and innovation. | Own operations | All time horizons
S1-Diversity | Actual positive impact | Diversity initiatives, such as employee networks that target demographics that would otherwise experience potential exclusion, have a positive impact on Erste Group employees by fostering an inclusive corporate culture. These efforts create an open environment where support is prioritized, allowing employees to feel valued and empowered. | Own operations | Short- to medium-term
Potential negative impact | Workplace discrimination can profoundly impact vulnerable groups of employees by fostering a hostile and unsafe work environment. These issues can lead to heightened stress and anxiety, making these employees feel unsupported and excluded and might affect their mental and physical health. | Own operations | All time horizons
S3-Social Banking (entity specific) | Actual positive impact | By ensuring that financial education programmes, as well as all banking products and services are accessible to marginalized individuals as well as underserved starting enterprises and social organisations/projects, Erste Group promotes their autonomy, social and professional integration and active participation in community life. | Downstream | All time horizons

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Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
S4-Privacy | Potential negative impact | Data breaches or cyberattacks could lead to compromised sense of security and privacy for individuals, leaking private and financial data of affected customers. | Portfolio | All time horizons
S4-Financial Health (entity specific) | Actual positive impact | Through educational programs, financial advice and tools Erste Group has a positive impact on the financial health of customers contributing to customers overall economic stability, leading to a better quality of life. | Portfolio | All time horizons
G1-Protection of whistleblowers | Potential negative impact | The potential lack of protection for whistle-blowers interferes with freedom of expression, potentially leading to retaliation and reprisal, social exclusion and psychological stress for whistle- blowers. | Own operations | All time horizons
G1-Corruption and Bribery - Prevention and detection including training | Potential negative impact | A lack of awareness and internal measures could potentially lead to corruption or bribery incidents with legal consequences including labour law sanctions as well as civil and criminal proceedings for employees. (also material for Incidents of corruption or bribery) | Own operations | All time horizons

For entity-specific topics, Erste Group follows the same disclosure requirements as prescribed by the respective E SRS for
sustainability matters. Therefore, disclosures for entity-specific topics include information regarding policies, actions and targets, if
available. The following disclosures in this sustainability statement are not covered by the ESRS and are entity-specific:
_ Adjusted Gender Pay Gap (for more information see S1-16)
_ Social Banking Performance Indicators (for more information see S3-5 and S4-5)
Information regarding the methodology of considering ESG risks in the existing risk appetite statement can be found in note 32.
Financial risk management, Risk appetite. As described in IRO-1, the process for evaluating the IROs was adjusted compared to last
year. Accordingly, several refinements and modifications were made during the course of the assessment, resulting from increased
guidance and benchmarking in 2025. These changes are outlined below.
E1 - Climate change adaptation
For ‘E1 - Climate Change Adaptation’, t he positive impact of climate change adaptation financing was reassessed as not material.
E1 - Climate change mitigation
For ‘E1 - Climate Change Mitigation’, the two negative impacts that were considered in last year’s assessment - the CO₂ emissions
from Erste Group’s own operations and upstream value chain contributing to climate change and global warming and the financed
CO₂ emissions contributing to climate change and global warming - were consolidated into one material negative impact in this
year’s evaluation.
E1 - Energy
For ‘E1 - Energy’, the two negative impacts that were assessed as material last year - the CO₂ emissions resulting from Erste
Group’s own energy mix (electricity, fuel and heating) and the investments in and financing of energy-intensive companies still
relying on fossil fuels - were consolidated and are now reflected under the material negative impact of Climate Change Mitigation.
This means that the material negative impact identified under Climate Change Mitigation equally applies to Energy.
The same approach applies to the opportunity: the previously material opportunity under Energy has been integrated into the
material opportunity under Climate Change Mitigation and therefore applies to both topics. No separate material opportunity is
assessed for Energy this year.
S1 - Own workforce
For ‘S1 - Own Workforce’, the positive impact identified under Work-life balance last year has not exceeded the materiality
threshold in the reassessment. The same applies to the positive impact under Health and Safety. Regarding the topic of Diversity an
additional potential negative impact was identified.
S3 - Social Banking (entity specific)
For ‘S3 - Affected Communities’ the entity specific positive impact related to Social Banking has been identified as material in this
year’s evaluation (2024 in S4).
S4 - Consumers and end-users
For ‘S4 - Consumers and End Users’, last year both a positive impact and an opportunity related to Financial Health were assessed
as material. While the opportunity was not considered as material in this year’s assessment, the positive impact remains the same.
Regarding the topic of Privacy the associated risk is no longer considered material. The topic Access to Products and Services is no
longer assessed as material for S4 this year. However, as noted earlier, a new positive impact under ‘S3 – Social Banking’ has been
identified.
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G1 - Business Conduct
For ‘G1 - Business Conduct’, last year a material positive impact was identified under Protection of Whistleblowers and a potential
positive impact under Corruption and bribery – Prevention and Detection, including Training. In this year’s assessment, both topics
are instead assessed as having a material potential negative impact.
After conducting the materiality assessment, the material IROs were evaluated to understand their potential impact on, or the need
to adjust, Erste Group’s business model, value chain and strategy. Currently, no changes to Erste Group’s business model based on
the material IROs have been made, however due to the important role that these IROs play for Erste Group, any potential impacts
on strategy and business are currently being reviewed and will be adjusted as appropriate.
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Impact, risk and opportunity management
IRO-1 – DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL
IMPACTS, RISKS AND OPPORTUNITIES
For the compilation of this year’s sustainability statement Erste Group has performed the annual double materiality assessment
(DMA) in accordance with the requirements of ESRS 1 and 2. Consequently, the performed assessment covered the identification
and assessment of impacts, risks and opportunities (IROs) under the IFRS consolidation scope. Furthermore, other participations,
which are not fully consolidated, were analysed regarding potential IROs and operational control. The outcomes of the assessment
are the basis for the scope of topics reported and data points included in this statement.
In 2025, the DMA process was conducted for the second time according to the ESRS. It deviates from the materiality assessment
from last year by introducing a Portfolio Analysis to identify impacts from the credit risk portfolio, adjusti ng the scoring process
and stakeholder engagement by building cross-functional scoring teams, who scored each time horizon separately.
Identification of impacts, risks and opportunities
The DMA was performed under the lead of Group Accounting and Group Corporate Affairs & Stakeholder Management,
considering inputs from Group Investor Relations, Group People & Culture, Group Procurement, Risk Management and
Corporates & Markets.
Double materiality assessment process
The process to identify the material impacts, risks and opportunities (IROs) was conducted in four steps. As a first step a relevance
analysis of all sustainability matters listed in ESRS 1 Appendix A AR 16 was conducted. Additionally, this list was enriched with the
entity specific topics such as financial health and social banking. A topic may be relevant if it is connected to the Group’s core
business, strategic priorities or value chain. Relevance can also arise from the extent to which stakeholders are affected. If a
sustainability matter was assessed as relevant, the respective IROs assigned to the topic were subsequently subject to an impact and
financial materiality assessment. The final step was to validate and approve the outcome of the DMA, where the final scoring per
IRO was quality assured by a central expert jury . Subsequent to these steps the results were visualised in a matrix, summarised in
an executive presentation and acknowledged by Erste Group’s Management Board.
To gain a deep understanding of the circumstances Erste Group is operating in, various data was collected for the identification of
IROs. Inputs for the DMA included:
_ guidance documents and peer benchmarking,
_ analysis of the group strategy and related business activities,
_ e ngagement with internal experts and use of studies,
_ integration of Erste Group Risk Materiality Assessment results,
_ mapping of sectoral credit exposures and financed emissions (Portfolio Analysis),
_ spend for purchased goods and services (Upstream),
_ consultation with internal expert jury.
Portfolio Analysis
The results of the portfolio analysis also inform the identification of impacts in the downstream value chain and their materiality
status. Using an Excel-based tool considering input data by UNEP FI and ENCORE, Erste Group assessed ESG impacts across its
portfolio and linked them to ESRS requirements for the DMA. To run the analysis, Erste Group provided portfolio data, including
loan details, exposure values, associated industries using NACE codes and countries of operation. Each loan is then assigned ESG
impact scores based on its sector and country, which are weighted by exposure to create a portfolio-wide ESG impact profile and
aggregated by sector to show which industries contribute most to ESG impacts. UNEP FI impact categories are mapped to ESRS
sub-topics and topics are flagged as relevant if their impact score exceeded the 90 th percentile threshold. These flagged topics were
then reviewed and validated by internal experts to determine whether they represent material impacts for Erste Group. The
portfolio analysis replaces the previous manual assessment approach by establishing materiality through a structured, data-driven
process.
Throughout the DMA, a Top-Down approach was used to identify the material IROs. This was done by assessing the IROs centrally
for the group with a continuous validation against the DMA results from the subsidiaries consolidated under IFRS. Consequently,
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in order to assure the completeness and accuracy of the DMA within Erste Group, constant communication with the subsidiaries
was necessary. This was to identify and assess potentially relevant IROs at both the group and entity levels. This was achieved by:
_ weekly AT/CEE calls,
_ ad hoc meetings on a 1:1 basis (Erste Group and subsidiaries),
_ workshops.
The outcome of the DMA is the list of material IROs that is shown in SBM-3 and lays the foundation for this report.
Stakeholder Engagement
The DMA was informed by internal experts from various business units, e.g People & Culture, Carbon Calculation & Targeting,
Data Protection Legal etc. and the Employees Council. Erste Group had no other direct consultations with other affected
stakeholders in the DMA. Results were validated by the Expert Jury. The Expert Jury are individuals representing Group
Accounting and Group Corporate Affairs & Stakeholder Management.
Value Chain Assessment
For the DMA, Erste Group aimed to reflect the interests and views of affected stakeholders the sustainability statement as described
in ‘SBM-2 - Interests and views of stakeholders’. Moreover, for the identification and assessment of IROs, special consideration was
given to the upstream and downstream value chain to ensure completeness of the relevant IROs. In this context, Erste Group
analysed the flow of activities, processes and value creation within the organisation.
Further information on Erste Group’s value chain composition and the respective implications on the DMA can be found in
chapter ‘SBM-1 - Strategy, business model and value chain’.
Impact Materiality Assessment
The assessment was based on the following central assumptions:
_ The value chain relevance and the time horizon of their assumed occurrence were identified per impact.
_ Impacts were defined as either positive or negative. If multiple but deviating impacts (i.e. positive and negative) were identified
towards a sustainability matter, each impact was evaluated separately.
_ For a sustainability matter to be deemed as material, only one material impact is sufficient, regardless of the count of additional
immaterial impacts, its state as actual or potential, its allocated time horizon or value chain relevan ce.
_ The severity and the likelihood were evaluated for each impact. An impact is classified as actual if it has already occurred and is
therefore observable or verifiable in the present. Conversely, an impact is classified as potential if its occurrence is only possible
in the future and thus based solely on a plausible expectation or projected development. Whether an impact is to be classified as
actual or potential is determined by the responsible internal experts. For actual impacts the likelihood was consistently set to
100%. For potential impacts the likelihood was assessed on a scale from 0-5 with each scale having a corresponding probability
weight.
_ The scoring of severity included the three parameters of scale, scope and - only for negative impacts - irremediabili ty. Each
evaluation parameter was assessed individually on a scale from 0-5. Their values were averaged, and the resulting score was then
multiplied by the likelihood.
_ Subsequent impacts and human rights impacts were considered. For human rights impacts severity took precedence over
likelihood with a weight of 100%.
_ Impacts with a total score above 2.5 on a scale from 0 to 5 were considered material. Using this as the threshold ensures that only
impacts with at least an upper-medium level of severity are classified as material. This approach prevents low-severity impacts
from being considered material, maintaining focus on the most significant topics.
_ Impact evaluations were conducted per time horizon by cross-functional scoring teams holding group functions setting scores
based on evidence and/or expert opinion.
_ The material impacts were aligned with the outcome of the financial materiality assessment for sustainability matters whereby
financial materiality would be triggered by impact materiality.
_ The final scoring per impact was quality assured by a central expert jury.
The executed assessment process did not comprise an explicit step of engaging with external stakeholders. Information concerning
affected stakeholders was considered implicitly via the above-mentioned in-house experts and their regular exchanges with
externals (i.e. customers, NGOs, rating agencies, investors). For more information on stakeholder groups and engagement, please
refer to chapter ‘SBM-2 - Interests and views of stakeholders’.
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Impacts relating to E1 Climate change
The whole value chain was considered and assessed in the context of climate change. As described in section ‘SBM-1 - Strategy,
business model and value chain’, some sectors with high emissions, such as IT-services, are part of Erste Group’s upstream value
chain. These were assessed alongside emissions from Erste Group’s own operations. The assessment was carried out in alignment
with the process outlined above, incorporating both the Portfolio Analysis and expert evaluations. Together, the impact was
considered material, especially due to the high score considering the scope of CO 2 emissions, which were considered to have a
global impact, as well as the irremediability, as CO 2 emissions are very difficult to be reversed.
However, a major part of Erste Group’s overall emissions stem from the financed emissions in the portfolio, which are part of its
downstream value chain. As such, these are closely monitored. During Erste Group’s DMA, the current total carbon footprint based
on end of year 2024 values was used as input. Erste Group is calculating and reporting GHG emissions for both its banking
operations (scope 1, 2 and 3) as well as its financed portfolio (financed scope 3 emissions). The used methodologies are in line with
the GHG Protocol Corporate Accounting and Reporting Standard and the PCAF methodology. Details regarding the computations
and calculation scope can be found in chapter E1-6 of this statement.
For the subtopic of climate change mitigation a negative impact was identified, which, due to its actual and global nature, received
the highest notch evaluation and hence was deemed material. This negative impact is equally applicable to the subtopic of energy,
but is only listed as a single negative impact applicable to both subtopics.
Erste Group already finances renewable energy projects supporting the transition to an economic system within the planetary
boundaries. It does so based on its Responsible Financing Policy, which sets out financing exclusions for high emitting sectors, as
well as its Sustainable Finance Methodology which pursues targets in sustainable financing. Based on the actual and global nature
this positive portfolio related impact was assessed as material.
Impacts relating to E4 Biodiversity and ecosystems
In the upstream value chain, no material impacts in connection to biodiversity and ecosystems were identified. Nevertheless, Erste
Group is aware that biodiversity and ecosystems is a topic of increasing importance and is closely monitoring all parts of its value
chain to ensure that potential impacts are adequately managed.
Erste Group has no sites (own premises) located in or near biodiversity-sensitive areas and no material impacts were identified
related to Erste Group’s own operations affecting any biodiversity-sensit ive areas.
Concerning downstream impacts, Erste Group’s focus on financing real estate and public infrastructure projects was assessed to
have an actual negative impact on biodiversity, as soil is sea led and land is degraded, causing increased flooding risks, climate
change exacerbation and possible health issues due to decreased air and water quality. Potential o ther impact drivers, such as
dependencies on ecosystems for certain financed sectors (such as tourism), have been considered, but were not considered material
due to the comparatively low exposure share . The evaluation was based on expert judgement and supported by portfolio analysis
data using ENCORE and UNEP FI data. Information with regards to affected communities are covered through the aforementioned
data bases and portfolio analysis. The material actual impact of biodiversity and ecosystem matters are restricted to the financed
portfolio.
Impacts relating to S1 Own Workforce
Erste Group places great importance on the development and support of its own employees, as they are a key factor in the
company’s success. Topics such as gender equality and equal pay for equal work, as well as diversity were identified as material for
Erste Group. A comprehensive analysis was conducted, taking into account existing People & Culture strategies and internal
policies. The assessment was based on the evaluations of internal experts and the results of existing employee surveys as well as
external studies.
Impac ts relating to S3 Affected Communities
Erste Group interacts in many ways with surrounding communities, which is why a positive impact was identified and the topic of
Social Banking was classified as material. The assessment was aligned with the Social Banking strategy, expert evaluations and
stakeholder feedback. Key impacts include ensuring access to products and services for financially vulnerable people and
promoting financial inclusion.
Impacts relating to S4 Consumers and End Users
As a financial services provider, Erste Group places great importance on its responsibility towards customers and end users. The
assessment of potential impacts related to the topics in this chapter - consumers and end users - was therefore carried out with
particular care. Topics such as financial health and privacy were identified as material to Erste. The assessment focused on the
direct impact on customers and end users, with a strong emphasis on the overall customer experience and the protection of their
interests. A detailed assessment was conducted, taking into account existing customer policies and data protection measures. This
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assessment was based on evaluations of internal experts and feedback from customer satisfaction surveys. For example, financial
well-being was given high priority.
Impacts relating to G1 Business conduct
All G1 subtopics were deemed in general as relevant for Erste Group’s own operations. An analysis was performed taking Erste
Group’s existing governance setup and compliance status as well as its role as a tightly supervised and regulated financial
institution and financial services provider into account. This influenced the evaluation of the impacts. For example, the impact
connected to the prevention and detection including training regarding corruption and bribery was deemed to have the lowest
likelihood, as Erste Group already has rigorous practices and trainings in place. The evaluation of the impacts was performed based
on Erste Group’s internal expert judgment, leading to two material potential negative impacts in connection to the protection of
whistleblowers and the prevention of corruption and bribery (see table in SBM-3).
Fi nancial Materiality Assessmen t
The financial materiality assessment was based on the following central assumptions:
_ For the assessment of financial materiality, risks and opportunities arising from future legislation, reputational considerations
and related uncertainties are taken into account. The process is linked to existing internal risk assessments and Erste Group’s
strategic positioning to capture emerging business opportunities. As part of this process, internal experts were briefed on the
methodological requirements of the DMA, including the interdependences between impact and financial materiality, with
particular emphasis on recognising financial materiality that results from impacts and dependencies.
_ The identification and evaluation of risks for this year’s DMA result considers information stemming out of Erste Group’s annual
risk materiality assessment, in which ESG risks and risk drivers were already included and evaluated. For more information on
the RMA, see the section below ‘Risk Materiality Assessment (RMA)’.
_ The value chain relevance and the time horizon of their assumed occurrence were identified per risk and opportunity.
_ For a sustainability matter to be deemed as material, only one material risk or opportunity is sufficient, regardless of the count of
additional immaterial risks or opportunities, its allocated time horizon or value chain relevance.
_ Identified risks and opportunities were evaluated in terms of the magnitude of their financial effect on a scale from 0-3 and
s ubsequently multiplied by the probability of occurrence on a scale from 0-5, with each scale having a corresponding probability
weight.
_ Risks and opportunities with a total score above 1.5 on a scale from 0 to 3 were considered material. Using this as the threshold
ensures that only risks and opportunities with at least medium scale of magnitude of financial effect are classified as material.
This approach prevents low-scaled risks and opportunities from being considered material, maintaining focus on the most
significant topics.
_ Risks and opportunities were defined and evaluated per time horizon separately by cross-functional scoring teams holding group
functions setting scores based on evidence and/or expert opinion.
_ The final scoring per risk and opportunity was quality assured by a centra l expert jury.
Risk Materiality Assessment (RMA)
The Business Environment Scan (BES) identifies climate and environmental risks and opportunities, serving as input for the RMA
to narrow down relevant topics. While the RMA provides the foundation for identifying material environmental risks,
opportunities subject to the environment are derived directly from the BES. Identified risks are then analysed by internal experts to
determine physical and transition risks, which are assessed across risk types (credit, market, operational, strategic, reputational,
liquidity) and time horizons (short-, medium-, long-term) for materiality and are mapped to the ESRS longlist topics, linked to prior
DMA risks or added as new ones. If any of those risks is material, the entire associated risk or topic is deemed material. The RMA
replaces manual expert assessments by defining materiality systematically.
RISKS AND OPPORTUNITIES RELATING TO E1 CLIMATE CHANGE
Physical risks
For the means of the DMA physical risks are identified and assessed under the subtopic of climate change adaptation. Physical
risks can arise at various locations throughout the value chain, such as:
_ Erste Group’s own fixed assets,
_ fixed assets of suppliers (e.g. data centres),
_ fixed assets of customers and as a specific category thereof
_ those customer fixed assets that serve as collateral.
Due to its essential importance for Erste Group as a credit institution, the assessment focused on the financed portfolio and the
transmission channels leading to credit risk. A transmission channel is the mechanism through which a physical risk (e.g., a flood)
translates into a financial risk for the bank (e.g., credit risk). While physical risks also affect the upstream value chain and Erste
Group’s own assets, their impact was assessed as minor compared to the downstream value chain. Acute physical risks can damage
43
collateral, and together with chronic physical risks, can impair the viability of business models. These dynamics act as transmission
channels that ultimately materialises as credit risk for Erste Group.
The assessment of the portfolio was guided by multiple inputs. The results of Erste Group’s risk materiality assessment, taking into
account the results of the comprehensive stress-testing exercise, including a flood risk scenario, as well as the results of a portfolio
screening based on MunichRe Location Risk Intelligence data were used as the basis for the materiality assessment. More
information can be found in chapter E1 SBM-3.
Erste Group applies the RCP 4.5 scenario, assuming moderate emission reductions with a peak around 2040 followed by a gradual
decline. The assessment uses 2050 as the central reference year, corresponding to the typical remaining economic life of financed
real estate assets (20–40 years). Physical risks are expected to affect collateral values mainly from mid‑century onward through
reduced marketability and higher operational and adaptation costs.
Physical risks across the portfolio and own assets are assessed at geocoordinate level, enabling precise location‑based scoring
beyond the regional aggregation required for CSRD (NUTS‑3). This approach captures local differences in exposure across core
markets more accurately.
For collateral assessment, Erste Group applies a bottom‑up methodology, evaluating climate‑related hazards for each financed
property or real estate collateral. This includes quantifying potential market value impacts associated with risks such as flooding or
extreme weather. Properties located in very high‑risk areas typically undergo on‑site inspections to document mitigations, which
may influence valuations. These property‑level findings are then aggregated to determine overall physical risk exposure for the real
estate portfolio.
Physical risk – own assets
Out of Erste Group’s own assets across countries, EUR 876.9 million, or approximately 0.24% of total assets (2024:
EUR 927.8 million, or approximately 0.26% of total assets) are exposed to material physical risks considering short, medium and
long-term horizon. Hence, Erste Group’s own assets do not show material physical risk. Geographically, Austria represents the
largest part of own assets exposed to material physical risks, followed by Romania and Hungary. Most exposures subject to material
physical risk are classified as facing acute physical risks.
Physical risk – real estate taken as collateral
The carrying amounts of the Group’s real estate taken as collateral include a portion of assets identified as being exposed to
material physical risks. An asset is considered materially exposed when MunichRe assigns a high or very high location‑specific risk
score.
The analysis of Erste Group’s financed asset portfolio indicates a single-digit percentage exposure to material physical climate risks
(7.55% (2024: 7.40%) of total assets as stated in the IFRS balance sheet).
Geographically, Austria stands out as the area with the highest share of exposure exposed to material physical risk, which is
attributed to the operational focus of Erste Group’s operations in this region, followed by Romania and Slovakia. From a risk
categorisation perspective, 97.00% (2024: 94.44%) of assets exposed across countries exposed to material physical risk are impacted
by acute physical risks (fire weather, river flooding, earthquakes, drought). The above exposure is primarily concentrated in long-
term maturities, which account for 76.83% or EUR 21.38 billion (2024: 74,54% or EUR 19.50 billion) of the total assets
(EUR 27.82 billion) exposed to material physical risk.
Transition risks and opportunities
Due to its essential importance to Erste Group as a credit institution, the focus of the identification and assessment of transition
risks and opportunities was centred on the financed portfolio and the impact on credit risk, as transition events such as policy
changes can impact the viability and profitability of customers’ business models. While risks and opportunities can arise in the
upstream value chain and Erste Group’s own operations, they have been assessed to be minor compared with the financed
portfolio.
Transition Risk
In line with the EBA Guidelines on the management of environmental, social and governance risks (EBA/GL/2025/01), Erste
Group defined a central scenario reflectin g its latest expectations on the development of its environment. Against the backdrop of
the current political and economic state of the world, the baseline is a combination of the NGFS scenarios Below 2°C and
Fragmented World. This hybrid scenario reflects a world where the European Union (EU) pursues a coordinated climate policy
path by implementing gradual but increasingly stringent climate policies (Below 2°C), while the rest of the world follows a more
fragmented trajectory, marked by delayed, uncoordinated and uneven climate actions a cross regions (Fragmented World).
44
Assets at material transition risk
Based on the described baseline scenario and its impact expressed in terms of additional expected credit loss Erste Group conducted
an additional assessment to gain valuable information about the portion of the credit portfolio currently exposed to material
transition risk. For this purpose, the gross impact (i.e. without consideration of any mitigating actions like decarbonization) was
calculated on client level and subsequently compared to a dedicated materiality threshold. This allows for a (im)materiality-
classification of all clients with emission calculation in Erste Group’s portfolio.
The following table provides information on the share of assets at material transition risk as percentage of total assets in scope of
the conducted transition risk scenario analysis. The scenario analysis allows for a materiality classification of assets worth
EUR 227,101 million (2024: EUR 179,826 million) as of year end 2025. Based on each client’s individual deal maturity, the data is
further broken down by maturity buckets in line with the pre-defined time horizons. The figures published last year are also
displayed, although those are based on an adverse scenario (delayed transition) and therefore do not allow for a direct comparison.
Assets at material transition risk in baseline scenario

Date | Item | Gross carrying amount (in EUR million) | of which assets at material transition risks
|  | Breakdown by maturity bucket
|  |  |  |  | Short-term | Medium-term | Long-term
31.12.2025 | Assets covered by scenario analysis | 227,101 | absolute | 51,225 | 10,213 | 15,342 | 25,670
% | 22.6% | 4.5% | 6.8% | 11.3%
30.06.2024 | Assets covered by scenario analysis | 179,826 | absolute | 58,543 | 20,578 | 21,378 | 16,588
% | 32.6% | 11.4% | 11.9% | 9.2%

While 22.6% (2024: 32.6%) of the assets are considered subject to material transition risk, it is important to emphasize that this
figure does not represent an expected loss. Assets identified as being at material transition risk are rather a potential source of
additional credit losses with any such losses being quantified in accordance with the existing methodology for determining credit
loss allowances (CLA).
With the implementation of a dedicated decarbonisation strategy for focus sectors, Erste Group can cover more than 43% (2024:
41%) of assets materially exposed to transition risk, thereby effectively reducing the associated credit risk and strengthening Erste
Group’s resilience towards transition risk. Erste Group is well aware that the necessary economic adjustments will continue to have
indirect macroeconomic effects on its business model. Nonetheless, mitigation measures can substantially reduce the impact and
allow management to contain the risk in line with the ambition level of the defined targets.
The gross carrying amount of financial assets at fair value through other comprehensive income, financial assets at amortised cost,
trade and other receivables, non-trading financial assets at fair value through profit or loss and finance lease receivables with credit
institutions, other financial corporations, non-financial corporations and households respectively amount to EUR 238,095 million
(2024: EUR 226,521 million) according to the notes 16 , 17, 19, 23 and 50 amount of the consolidated financial statements. The assets
covered by the scenario analysis amount to EUR 227,101 million (2024: EUR 179,826 million). The difference results primarily from
unsecured positions towards private households (consumer loans).
Real estate-related assets by their energy efficiency levels
Beyond counterparty-level transition risk, collaterals may also be exposed, as buildings could prove to be energy‑inefficient and
therefore face potential market value declines. Hence, the evaluation of transition risks is taking into account the current
distribution of the portfolio based on its carbon-intensity and the Energy Performance Certificate (EPC) across the commercial and
residential real estate portfolio. Energy‑inefficient buildings may trigger higher energy or renovation-related costs, increasing the
financial strain on owners or occupants, ultimately leading to a potential deterioration in clients’ credit quality.
One of the key metrics are Energy Performance Certificate (EPC) Labels, which classify assets based on their energy efficiency
rating from A (highest efficiency) to G (lowest efficiency). Energy efficiency data coverage is increasing across the Group, with EPC
labels availability representing 34% of total assets (2024: 29%) excluding estimated labels. Among these collected EPC Labels, a
significant share of exposure falls within high energy efficiency buckets (A–C), representing 82% of total assets (2024: 82%). Overall,
the increasing share of energy-efficient collateral - especially in EU area – is expected to support the mitigation of transition risk
impacts, thereby contributing to Erste Group’s strategic resilience.
Transition opportunities
The evaluation of transition opportunities is taking into account the current distribution of the portfolio and the potential financial
benefits of identified opportunities. This includes opportunities from financing companies investing into the decarbonisation of
their own business models and clients offering climate change adaptation solutions, for example in the real estate sector.
45
Non-material sustainability matter s
Erste Group examined various topics, including pollution, water and marine resources, resource use and circular economy. In all
these areas, no material IROs were identified. The assessment considered Erste Group’s business model as a financial institution
and its up- and downstream value chain. The assessments indicated that the potential IROs were considered minor and non-
material due to Erste Group’s non-manufacturing business model and the structure of its portfolio.
E2 Pollution
The upstream value chain, such as IT-providers, as well as Erste Group’s own operations and downstream value chain were
considered in the assessment of pollution matters. A portfolio analysis was performed to identify impacts linked to the typical risk
profiles of the industries (see chapter IRO-1 – Impact Materiality Assessment for further details). The industries with the highest
impacts were identified as agriculture, mining, manufacturing, construction and transportation. Due to the high standards and
strict regulations on pollution matters that are in place to limit impacts on the environment within these industries, no material
impact was determined. Risks and opportunities relating to pollution were analysed based on the current business strategy and
portfolio structure in combination with the results of Erste Group’s risk materiality assessment and underlying ESG sector risk
heatmap. No material risks or opportunities were identified, primarily because the industries evaluated as high-risk within the
scope of pollution matters had a low exposure share.
E3 Water and marine resources
Potential impacts relating to water and marine resources in the upstream value chain, such as water cooling connected to IT
services were assessed. A portfolio analysis was used to identify impact drivers in the downstream value chain. The impacts, when
weighted by exposure to the relevant industries, did not indicate materiality. The assessment of risks and opportunities was
conducted based on the current business strategy and portfolio structure, supplemented by insights from Erste Group’s risk
materiality assessment and its ESG sector risk heatmap. No material risks or opportunities were identified, primarily because the
industries evaluated as high-risk within the scope of water and marine resource matters had a low exposure share.
E5 Resource use and circular economy
Erste Group’s own operations and upstream value chain were assessed, along with impacts related to the financed portfolio, using a
portfolio analysis. The highest impacts were identified in industries such as agriculture, mining, manufacturing, construction and
real estate. Following high standards and strict regulations on resource use and circular economy matters that are in place to limit
impacts on the environment within these industries, no material impact was determined. The assessment of risks and opportunities
associated with resource use and the circular economy was carried out based on the current business strategy and portfolio
structure, complemented by insights from Erste Group’s risk materiality assessment and its ESG sector risk heatmap. No material
risks or opportunities were identified, primarily because the exposure share of industries affected by the main risk driver of a
potential ban of environmentally damaging materials or chemicals is not significant.
IRO-2 – DISCLOSURE REQUIREMENTS IN ESRS COVERED BY THE UNDERTAKING’S
SUSTAINABILITY STATEMENT
List of disclosure requirements
After the completion of the DMA the respective material sustainability matters were allocated to the relevant disclosure
requirements and data points by using the EFRAG Guidance. Additionally, Erste Group discloses entity specific information
following the policy, action and target structure for the sustainability matters of social banking and financial health. Metrics were
disclosed where required.
The list of disclosure requirements and their location in the statement can be found below.
46

List of disclosure requirements | Page #
General information |
BP-1 | General basis for preparation of sustainability statement | 23
BP-2 | Disclosures in relation to specific circumstances, time horizons and data methodology for reporting | 23
GOV-1 | The role of the administrative, management and supervisory bodies | 25
GOV-2 | Information and sustainability aspects dealt with by the company’s administrative, management and supervisory bodies | 27
GOV-3 | Integration of sustainability-related performance in incentive schemes | 28
GOV-4 | Statement on due diligence | 30
GOV-5 | Risk management and internal controls over sustainability statement | 31
SBM-1 | Strategy, business model and value chain | 32
SBM-2 | Interests and views of stakeholders | 34
SBM-3 | Material impacts, risks and opportunities and their interaction with Erste Group’s strategy and business model | 36
IRO-1 | Description of the process to identify and assess material impacts, risks and opportunities | 39
IRO-2 | Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement | 45
Climate change |
E1 SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 80
E1-1 | Transition plan | 84
E1-2 | Policies and transition measures for climate change mitigation and adaptation | 85
E1-3 | Actions and resources in relation to climate change mitigation and adaptation | 90
E1-4 | Targets related to climate change mitigation and adaptation | 93
E1-5 | Energy consumption and mix | 103
E1-6 | Gross Scopes 1, 2, 3 and Total GHG emissions | 105
Biodiversity and ecosystems |
E4 SBM-3 | Material impact related to biodiversity and ecosystems | 115
E4-1 | Resilience of Erste Group’s strategy and business model in relation to soil sealing | 115
E4-2 | Policies related to soil sealing | 116
E4-3 | Actions and resources related to soil sealing | 117
E4-4 | Targets related to soil sealing | 117
E4-5 | Impact metrics related to soil sealing | 117
Own workforce |
S1 SBM-3 | Material impacts, risks and opportunities related to own workforce and their interaction with strategy and business model | 118
S1-1 | Policies related to own workforce | 120
S1-2 | Processes for engaging with own workforce and workers’ representatives about impacts | 123
S1-3 | Processes to remediate negative impacts and channels for own workforce to raise concerns | 125
S1-4 | Taking action on material impacts on own workforce and pursuing material opportunities related to own workforce and effectiveness of those actions | 126
S1-5 | Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities | 131
S1-6 | Characteristics of the undertaking’s employees | 132
S1-7 | Characteristics of non-employees in the undertaking's own workforce | 133
S1-9 | Diversity metrics | 134
S1-12 | Persons with disabilities | 134
S1-13 | Training and skills development metrics | 135
S1-16 | Remuneration metrics (pay gap and total remuneration) | 135
S1-17 | Incidents, complaints and severe human rights impacts | 137
Affected communities |
S3 SBM-3 | Material impact and its interaction with strategy and business model | 138
S3-1 | Policies related to affected communities | 138
S3-2 | Process for engaging with affected communities about impacts | 139
S3-4 | Taking action on material impacts on affected communities and managing the effectiveness of those actions | 140
S3-5 | Targets related to advancing positive impacts | 142
Consumers and end-users |
S4 SBM-3 | Material impacts and their interaction with strategy and business model | 144
S4-1 | Policies related to consumers and end-users | 144
S4-2 | Processes for engaging with consumers and end-users about impacts | 146
S4-3 | Processes to remediate negative impacts and channels for consumers and end-users to raise concerns | 147
S4-4 | Taking action on material impacts on consumers and end-users and effectiveness of those actions | 147
S4-5 | Targets related to managing material negative impacts, advancing positive impacts | 149
Business conduct |
G1-1 | Business conduct policies and corporate culture | 152
G1-3 | Prevention and detection of corruption and bribery | 153
G1-4 | Incidents of corruption or bribery | 155
G1-5 | Political influence and lobbying activities | 155

47
List of data points in cross-cutting and topical standards that derive from other EU legislation

Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Material / not material | Page reference
ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) | Indicator number 13 of Table #1 of Annex 1 |  | Commission Delegated Regulation (EU) 2020/1816 ( 27 ), Annex II |  | Material | 25
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 25
ESRS 2 GOV-4 Statement on due diligence paragraph 30 | Indicator number 10 Table #3 of Annex 1 |  |  |  | Material | 30
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i | Indicators number 4 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 ( 28 ) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk | Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii | Indicator number 9 Table #2 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii | Indicator number 14 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1818 ( 29 ), Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv |  |  | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 |  |  |  | Regulation (EU) 2021/1119, Article 2(1) | Material | 84
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g) and Article 12.2 |  | Material | 84
ESRS E1-4 GHG emission reduction targets paragraph 34 | Indicator number 4 Table #2 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 6 |  | Material | 93
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 | Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 |  |  |  | Material | 103

48

Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Material / not material | Page reference
ESRS E1-5 Energy consumption and mix paragraph 37 | Indicator number 5 Table #1 of Annex 1 |  |  |  | Material | 103
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Indicator number 6 Table #1 of Annex 1 |  |  |  | Not material |
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 | Indicators number 1 and 2 Table #1 of Annex 1 | Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) |  | Material | 105
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 | Indicators number 3 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 8(1) |  | Material | 105
ESRS E1-7 GHG removals and carbon credits paragraph 56 |  |  |  | Regulation (EU) 2021/1119, Article 2(1) | Not material |
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 |  |  | Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II |  | Material | Phase-in
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c) |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. |  |  | Material | Phase-in
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c) |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral |  |  | Material | Phase-in
ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 |  |  | Delegated Regulation (EU) 2020/1818, Annex II |  | Material | Phase-in
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 | Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E3-1 Water and marine resources paragraph 9 | Indicator number 7 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E3-1 Dedicated policy paragraph 13 | Indicator number 8 Table 2 of Annex 1 |  |  |  | Not material |
ESRS E3-1 Sustainable oceans and seas paragraph 14 | Indicator number 12 Table #2 of Annex 1 |  |  |  | Not material |

49

Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Material / not material | Page reference
ESRS E3-4 Total water recycled and reused paragraph 28 (c) | Indicator number 6.2 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E3-4 Total water consumption in m 3 per net revenue on own operations paragraph 29 | Indicator number 6.1 Table #2 of Annex 1 |  |  |  | Not material |
ESRS 2- SBM 3 - E4 paragraph 16 (a) i | Indicator number 7 Table #1 of Annex 1 |  |  |  | Material | 115
ESRS 2- SBM 3 - E4 paragraph 16 (b) | Indicator number 10 Table #2 of Annex 1 |  |  |  | Material | 115
ESRS 2- SBM 3 - E4 paragraph 16 (c) | Indicator number 14 Table #2 of Annex 1 |  |  |  | Material | 115
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E4-2 Policies to address deforestation paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E5-5 Non-recycled waste paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 | Indicator number 9 Table #1 of Annex 1 |  |  |  | Not material |
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) | Indicator number 13 Table #3 of Annex I |  |  |  | Not material |
ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) | Indicator number 12 Table #3 of Annex I |  |  |  | Not material |
ESRS S1-1 Human rights Policy commitments paragraph 20 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I |  |  |  | Material | 120
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 120
ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 | Indicator number 11 Table #3 of Annex I |  |  |  | Material | 120
ESRS S1-1 Workplace Accident Prevention Policy or management system paragraph 23 | Indicator number 1 Table #3 of Annex I |  |  |  | Material | 120
ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) | Indicator number 5 Table #3 of Annex I |  |  |  | Material | 125
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) | Indicator number 2 Table #3 of Annex I |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) | Indicator number 3 Table #3 of Annex I |  |  |  | Not material |
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) | Indicator number 12 Table #1 of Annex I |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 135
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) | Indicator number 8 Table #3 of Annex I |  |  |  | Material | 135

50

Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Material / not material | Page reference
ESRS S1-17 Incidents of discrimination paragraph 103 (a) | Indicator number 7 Table #3 of Annex I |  |  |  | Material | 137
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a) | Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) |  | Material | 137
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) | Indicators number 12 and n. 13 Table #3 of Annex I |  |  |  | Not material |
ESRS S2-1 Human rights Policy commitments paragraph 17 | Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 |  |  |  | Not material |
ESRS S2-1 Policies related to value chain workers paragraph 18 | Indicator number 11 and n. 4 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S2-1Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 | Indicator number 10 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Not material |
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S3-1 Human rights Policy commitments paragraph 16 | Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 |  |  |  | Not material |
ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17 | Indicator number 10 Table #1 Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Not material |
ESRS S3-4 Human rights issues and incidents paragraph 36 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S4-1 Policies related to consumers and end- users paragraph 16 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 |  |  |  | Material | 144
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 | Indicator number 10 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Material | 144
ESRS S4-4 Human rights issues and incidents paragraph 35 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Material | 147
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) | Indicator number 15 Table #3 of Annex 1 |  |  |  | Material | 152
ESRS G1-1 Protection of whistleblowers paragraph 10 (d) | Indicator number 6 Table #3 of Annex 1 |  |  |  | Material | 152
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) | Indicator number 17 Table #3 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II) |  | Material | 155
ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) | Indicator number 16 Table #3 of Annex 1 |  |  |  | Material | 155

51
Environmental information
EU Taxonomy Disclosures
Legal framework at EU level
The EU Commission’s Delegated Regulation (EU) 2026/73 (further referred to as ‘revised EU Taxonomy DDA’) amending the EU
Commission’s Delegated Regulation (EU) 2021/2178 (further referred to as ‘unrevised EU Taxonomy DDA ’) as regards the
simplification of the content and presentation of information to be disclosed concerning environmentally sustainable activities
addresses the requirement of the EU Taxonomy’s Article 8 by specifying the accordingly revised content and presentation of
information to be disclosed concerning environmentally sustainable economic activities and specifying the accordingly revised
methodology to comply with that disclosure obligation.
The revised EU Taxonomy DDA has been published in EU’s Official Journal on 8th of January 2026, with applicability from 1st of
January 2026 for the financial year 2025. The necessity of such a revision stem from the experience with the first year of reporting
by financial undertakings and the two consecutive years of reporting by non-financial undertakings, which was found to provide a
sufficient basis for the EU Commission (EC) to introduce certain targeted simplification measures to streamline reporting
obligations and thereby reduce administrative burden on reporting undertakings, while not losing relevant and material data from
the Taxonomy reporting framework. These measures, in a draft form open for comments, were issued in February 2025, as part of
the so-called ‘Sustainability Omnibus Proposal’ (hereafter referred to as ‘Omnibus’), then further refined and issued on the 4th of
July 2025 in the form of an EC Delegated Regulation. In parallel, Omnibus’ ‘stop the clock’ proposal - that is, applying year-end
2024’s scope of undertakings subject to CSRD (hence: to EU Taxonomy disclosures as well) until further re-assessment of scope’s
previously enacted gradual widening across the years 2025-2028 - was fast-tracked for immediate enacting at EU level.
As mandated by its Article 4, Erste Group initially applies the revised EU Taxonomy DDA for the reporting year ending on 31
December 2025. Therefore, Group’s EU Taxonomy disclosures as of 31 December 2025 hereafter included, as well as the number,
the content and the structure of the related templates have been adapted to fully reflect the requirements of the revised EU
Taxonomy DDA, notably the amendments to the Annex VI to the unrevised EU Taxonomy DDA (providing the updated layouts of
the currently required templates 0-5) and the deletion of the Annex XII to the unrevised EU Taxonomy DDA (previously
integrating the requirements of the Delegated Regulation 2022/1214 and the related previously applicable templates dedicated to
direct and indirect applicable exposures towards the nuclear & fossil gas energy sectors).
Erste Group's application of revised EU Taxonomy DDA's provisions prompting reporting credit
institutions to make own reporting choices
10% de minimis threshold applicable to UoP (Use of proceeds) assets with respect to sustainability assessment
In accordance with the revised EU Taxonomy DDA, up to 10% of credit institution’s on-balance ‘use of proceeds known’ assets or
off-balance items considered into the denominator of the related Taxonomy KPI of the credit institution can be omitted from such
an assessment and reported instead as non-assessed exposures in a newly available dedicated section of the related EU Taxonomy
templates. For the year ending on 31 December 2025, being also the first year of application of the revised EU Taxonomy DDA by
Erste Group (and, inherently, by any other CSRD obligated undertaking), the Group opted for not making use of the above
described 10% de minimis threshold. Consequently, the newly introduced columnar section ‘Non-assessed exposures’ is reported
empty across all rows in all related EU Taxonomy simplified templates of the Group as of 31 December 2025.
10% net turnover de minimis threshold applicable to reporting credit institutions's EU Taxonomy KPIs to be
disclosed
Another key change brought by the revised EU Taxonomy DDA relates to the possibility for reporting credit institutions to not
report a given EU Taxonomy KPI provided that the related assets or off-balance items contribute by 10% or less to institution’s net
turnover, as defined by the applicable regulatory requirements. On this basis, Erste Group has proceeded with determining the
relative contribution of Group’s asset management fees, as reported in Group’s consolidated statement of comprehensive income
for the financial year ending on 31 December 2024 and concluded that this contribution did not reach the mentioned de minimis
threshold of 10%. Consequently, Erste Group does not disclose its AuM KPI as of 31 December 2025 in any of the applicable views.
52
Consequently, the related rows of the Templates 1 and 5 for 31 December 2025, as presented below, (all applicable views) are not
populated.
Option to include selected assets towards CSRD non-obligated undertakings into the GAR calculation
In accordance with the revised EU Taxonomy DDA as well, the applicable taxonomy KPIs can be either mandatorily or voluntarily
disclosed by the related undertakings. However, in the latter case and provided that the reporting credit institution opts for
considering exposures to such undertakings into its Green Asset Ratio (GAR), the applicable general-purpose exposures and the
calculated amounts arising from the above mentioned weighing shall be distinctly disclosed into a newly available dedicated
section of the related EU Taxonomy templates, along any specific-purpose applicable exposures towards CSRD non-obligated
undertakings that the credit institution may voluntarily include into the assets covered by the GAR calculation (hence: assess the
specifically financed activities accordingly). For year-end 2025 EU Taxonomy reporting purposes, Erste Group opted for including
into its assets covered by the GAR calculation neither applicable general-purpose exposures to undertakings having voluntarily
disclosed their taxonomy KPIs nor applicable specific-purpose exposure towards CSRD non-obligated undertakings (whether they
voluntarily disclosed any taxonomy KPIs or not). Therefore, the newly included linear section ‘Exposures included on a voluntary
basis’ is reported empty across all columns in all related EU Taxonomy simplified templates of the Group as of 31 December 2025.
Revised EU Taxonomy DDA's approach to GAR calculation and its implementation in Erste Group
The GAR is the proportion of taxonomy aligned assets or economic activities financed by Erste Group compared to the total ‘GAR
assets’. The revised EU Taxonomy DDA has introduced a key change in the composition of GAR’s denominator, aimed at achieving
GAR’s ‘symmetry’ in the sense of ensuring a full overlap with respect to the categories of assets and counterparts falling in the
respective scopes of GAR’s numerator and denominator. This means that:
_ Non-trading non-derivative financial assets towards CSRD non-obligated undertakings, previously included in GAR’s
denominator’s only, have been fully excluded from the assets covered by the GAR calculation, unless the reporting credit
institution would opt to include them on a voluntary basis, which, as mentioned above, is not the case of Erste Group for 31
December 2025;
_ Other categories of financial assets previously included in GAR’s denominator only, such as hedging derivatives, on demand
inter-bank loans, cash and cash related assets, have been fully excluded from the assets covered by the GAR calculation;
_ Other categories of assets, such as goodwill and other non-financial assets, previously included in GAR’s denominator only, have
been fully excluded from the assets covered by the GAR calculation.
As a direct result of the newly adopted ‘symmetrical’ approach to the GAR calculation, Erste Group further proceeded with the
following two reallocations out of the ‘GAR assets’ into the category of assets not covered for the GAR calculation:
_ Loans to Households other than those identified as EU taxonomy eligible (that means: other than those collateralized by
residential real estate or building renovation loans or motor vehicle loans granted starting with 2022), previously considered as a
category of assets covered in both the numerator and the denominator of the GAR (although inherently not eligible for
contributing to GAR’s numerator), have been fully excluded from the assets covered by the GAR calculation and considered
instead within the GAR-excluded category ‘Undertakings and entities not subject to CSRD’ within the related Taxonomy
templates as per the revised EU Taxonomy DDA;
_ similarly, general or sundry financings of Local Governments, previously considered as a category of assets covered in both the
numerator and the denominator of the GAR (although inherently not eligible for contributing to GAR’s numerator), have been
fully excluded from the assets covered by the GAR calculation and considered instead within the GAR-excluded category
‘Undertakings and entities not subject to CSRD’ within the related Taxonomy templates as per the revised EU Taxonomy DDA.
Non-trading non-derivative financial assets having CSRD-obligated undertakings as counterparts are mandatorily included in the
GAR calculation. Considering the ‘stop the clock’ decision of the EU Commission in respect to the CSRD scope of obligated
undertakings (as also referred to above), the criteria applied at year-end 2024 for identification of the CSRD-obligated undertakings
continue to apply in full at year-end 2025 as well. Thus, all undertakings considered to be of public interest and employing more
than 500 employees either as individual entities or at the related group level are deemed required to comply with Article 8,
Paragraph 1 of Regulation (EU) 2020/852 and hence identified as CSRD-obligated, even when such an obligation does not apply at
related undertaking’s individual level, provided that the related undertaking is identified as subsidiary of a parent undertaking
CSRD-obligated at consolidated level only.
The assets covered in the GAR calculation due to having financial or non-financial undertakings identified as CSRD-obligated as
counterparts are further considered in the GAR numerator as follows:
_ in full, if the purpose of the financing is known (use of proceeds known) and the financed economic activities demonstrably meet
all technical screening criteria of the classification system (e.g. project financing) and are MS compliant, or
_ weighed by the counterpart’s (or, if unavailable, by the counterpart’s group) most recently published taxonomy alignment KPI, if
the purpose of the financing is unknown (‘general purpose financing’, e.g. working capital loans).
53
‘Use of proceeds known’ non-trading non-derivative financial assets that have households or local governments as counterparts
(namely, public authority bodies or agencies other than those directly run by related country’s central government, e.g.
municipalities or local councils) are also covered in the GAR calculation, if the financed economic activities demonstrably meet all
the applicable technical screening criteria.
Financial assets previously already fully excluded from the GAR calculation, namely those towards central governments,
supranational issuers and central banks, as well as all trading assets, have continued to remain so.
Ensuing implications on the Eligibility KPI
Another significant KPI is the taxonomy eligibility KPI. This KPI puts the assets covered in the GAR calculation that are classified
as taxonomy eligible in relation to the total assets covered in the GAR calculation. Similarly to the GAR, covered financial assets
towards financial or non-financial undertakings are considered in both the numerator and the denominator of the eligibility KPI
provided that the related counterparts are themselves CSRD-obligated at either individual or consolidated level or belong to a group
headed by an CSRD-obligated undertaking or are included by the reporting credit institution on a voluntary basis (not the case for
Erste Group for year-end 2025, as mentioned above). Such financial assets (if they are neither held for trading nor derivative assets)
are further considered in the numerator of the taxonomy eligibility KPI as follows:
_ in full, if the purpose of the financing is known and the economic activities financed are found as taxonomy eligible by
corresponding to the activities described in the classification system, regardless of whether all technical criteria are met (e.g.
project financings), or
_ weighed by counterpart’s (or, if unavailable, by counterpart’s group) most recently published taxonomy eligibility KPI, if the
purpose of the financing is unknown (‘general purpose financing’ e.g. working capital loans).
Additionally, ‘use of proceeds known’ non-trading non-derivative financial assets that have households or local governments as
counterparts are also included in the numerator of the taxonomy eligibility KPI, if the financed economic activities demonstrably
are found as taxonomy eligible by corresponding to the activities described in the classification system, regardless of whether all
technical criteria are met.
Derived KPIs (‘proportions’) additionally introduced by the revised EU Taxonomy DDA
Aside the GAR and the Eligibility KPI, the revised EU Taxonomy DDA has introduced within the GAR KPI stock and flow
templates a new columnar section named ‘Proportion of Taxonomy aligned in Taxonomy eligible’, where the ratio of taxonomy-
aligned assets into the taxonomy-eligible assets, as already referred to by the Annex V of the unrevised EU Taxonomy DDA as
‘second step’ KPIs, has to be distinctly disclosed.
Overview of Erste Group’s Taxonomy disclosures and KPIs
SCOPE OF THE PUBLISHED EU TAXONOMY REPORTING TEMPLATES
Erste Group has prepared the EU Taxonomy disclosures on a consolidated basis, in accordance with the CRR consolidation scope,
which is insignificantly different from Group’s IFRS scope of consolidation (as disclosed in the related Annex to this Annual
Report), notably in terms of impact in the consolidated taxonomy disclosures based on Group’s total consolidated assets. Therefore,
whilst Erste Group’s total consolidated assets as at 31 December 2025 in accordance with the IFRS consolidation scope amount to
EUR 368.57 billion (31 December 2024: EUR 353.74 billion), they amount to EUR 368.28 billion (31 December 2024:
EUR 353.71 billion) according to the CRR consolidation scope, net of related credit loss allowances in amount of EUR 4.02 billion
(31 December 2024: EUR 4.14 billion), which are grossed-up for EU Taxonomy reporting purposes along adjustments to other
balance-sheet items as further detailed in the sub-chapter ‘Reporting methodology and underlying assumptions and interpretations’
below). This slight difference is due to a few entities qualifying as subsidiaries under the IFRS scope of consolidation only.
For year-end 2025, unlike for year-end 2024, Erste Group, as a credit institution, applies Annex V and VI of the EU Taxonomy
Disclosures Regulation, as modified by the revised EU Taxonomy DDA. Inherently, this legislative update impacts therefore the
year-on-year comparability of some of Erste Group’s Taxonomy KPIs. Had the methodological changes brought by the revised EU
Taxonomy DDA been applied for year-end 2024 as well, the related Taxonomy KPIs of the Group had been different as further
detailed in the sub-chapter ‘Summary of the revised EU Taxonomy DDA’s effects on the comparative information as of year-end 2024’
below.
Based on CSRD, all Erste Group’s sub-groups in scope of sustainability reporting as of 31 December 2025 are publishing separate
(consolidated) sustainability statements. Erste Group did not identify any material differences between the KPIs for the group as a
whole and any of its subsidiaries that would justify or require a separate presentation of their KPIs, which is in line with
expectations driven by the limitations of the prudential scope of consolidation, only comprising institutions, financial institutions
and, if consolidated supervision is required, ancillary service undertakings.
54
SUMMARY OF THE PUBLISHED EU TAXONOMY REPORTING TEMPLATES ACCOMPANIED BY CONSIDERATIONS
ON SELECTED YEAR-ON-YEAR DEVELOPMENTS
This paragraph provides a concise description of the EU Taxonomy reporting templates published by Erste Group as of
31 December 2025, simultaneously addressing the requirements of Annex XI to the EU Taxonomy Disclosures regulation with
regards to qualitative explanations addressing significant developments in the main taxonomy KPIs, starting with the second year
of implementation.
Template 0 ‘Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation’
Template 0 provides a summary of key amounts and most significant taxonomy KPIs, as further disclosed in the Templates 1, 3 or 5
(see below). According to Annex VI to the EU Taxonomy Disclosures Regulation as modified by the revised EU Taxonomy DDA,
Template 0 does not feature a comparative (‘T-1’) section. Therefore, Erste Group does not create a comparative Template 0 for 31
December 2024. However, the significant year-on-year developments in the quantitative information featured in Template 0 are
further outlined below.
Total environmentally sustainable assets / activities (turnover view)
As of 31 December 2025, Erste Group discloses in Template 0 total taxonomy aligned assets (‘stock’) in amount of EUR 2.92 billion
(31 December 2024: EUR 1.59 billion) in ‘turnover’ view and respectively EUR 3.41 billion (31 December 2024: EUR 2.60 billion) in
‘CapEx’ view. Out of them, those having been initially recognised during the current year (‘flow’) amount to EUR 0.70 billion (2024:
EUR 0.68 billion) in ‘turnover’ view and respectively EUR 0.80 billion (2024: 1.00 billion) in ‘CapEx’ view. The ‘turnover’ view
indicates that – as far as general-purpose financings to CSRD-obligated clients or issuers having published Taxonomy KPIs are
concerned – the related exposures have been weighted by their respective taxonomy KPIs in connection to their revenue-generating
activities (non-financial undertakings) or financings thereof (financial undertakings). The ‘Capex’ view indicates that – as far as
general-purpose financings to CSRD-obligated clients or issuers having published Taxonomy KPIs are concerned – the related
exposures have been weighted by their respective taxonomy KPIs in connection to their capital expenditure activities (non-financial
undertakings) or financings thereof (financial undertakings).
The significant year-on-year increase in the taxonomy aligned financings is mainly attributable to mortgage loans to Households
that could be assessed as taxonomy-aligned for the first time at year-end 2025, thanks to improvements in the completeness and
quality of the underlying data with respect to both the energy performance of the financed real estate collaterals and the applicable
physical risks scorings in the geo-locations of those collaterals, as modelled across the required time horizons and RCP scenarios.
Thus, taxonomy-aligned loans to Households increased from EUR 0.0 billion at 31 December 2024 to EUR 1.20 billion at
31 December 2025. Further methodological details are provided in the sub-chapter ‘Retail lending’ within the chapter ‘Removal of
GAR structural constraints and developments in data availability’ below.
On the other hand, taxonomy aligned financings to financial undertakings and respectively CSRD-obligated non-financial have
remained relatively stable on a year-on-year basis:

| Turnover view (stock) | CapEx view (stock)
in EUR billion | Dec 24 | Dec 25 | Dec 24 | Dec 25
Financial undertakings | 0.39 | 0.34 | 0.62 | 0.43
Non-financial undertakings | 1.20 | 1.38 | 1.97 | 1.78

Total environmentally sustainable assets are further detailed, notably per categories of assets and related counterparts, but also per
eligibility and alignment towards each of the 6 environmental objectives within Template 1 ‘Assets for the calculation of GAR’,
disclosed in both the turnover view and the CapEx view and, as newly required by the revised EU Taxonomy DDA, as both stock
and flow as well. Template 1 does no longer feature a ‘T-1’ comparative section.
Total GAR Stock and Flow (turnover view and CapEx view)
The below considerations addressing the year-on-year development (31 December 2025 vs 31 December 2024) in Group’s GAR
Stock and Flow (turnover and CapEx views) are based on year-end 31 December 2024’s related GAR ratios having been
recalculated by retrospectively applying the changes in GAR’s calculation approach induced by the revised EU Taxonomy DDA, as
outlined in the preceding sub-chapter above and further summarized (in terms of quantitative impact) in the sub-chapter
‘Summary of the revised EU Taxonomy DDA’s effects on the comparative information as of year-end 2024’ effects on the comparative
information as of year-end 2024 below. Such retrospective recalculation has the purpose of ensuring ‘like with like’ comparability
of the GAR ratios as at 31 December 2025 vs 31 December 2024, thus ensuring the adequacy of the below considerations by
reference to Annex XI’s related requirements.
Erste Group’s total GAR (turnover view) acknowledges a development from 1.48% as at 31 December 2024 to 2.52% as at
31 December 2025 (stock) and respectively from 3.59% as at 31 December 2024 to 3.10% as of 31 December 2025 (flow). GAR’s
55
significantly favourable change for stock results essentially from the above described year-on-year positive development in total
taxonomy aligned mortgage and building renovation loans to Households, most of them originated in prior years (and therefore
having an insignificant impact on ‘flow’).
In the CapEx view, the corresponding development is as follows: from 2.42% as of 31 December 2024 to 2.94% as of
31 December 2025 (stock) and respectively from 5.27% as of 31 December 2024 to 3.55% as of 31 December 2025 (flow).
Erste Group’s GAR Stock as of 31 December 2025 remains nevertheless significantly limited by the inherent difficulties in fully
assessing, beyond any reasonable doubt, the taxonomy alignment of Group’s mortgage loans to Households, in particular with
regards to the DNSH criterion and notably when the identification of high or very high particular physical risk(s) in financed
collateral’s geolocation would have prompted an asset level vulnerability assessment by reference to any related asset-level
adaptation measures for mitigating those material physical risks, others than those that can be deemed factored into the applied
scoring methodology for the related particular physical risk (further details in the sub-chapter ‘Developments in data availability’
below). None of such mortgage loans could therefore be reported as taxonomy aligned, although for some of them the SC criterion
would have been found as satisfied. In addition, the consistent application of relative performance benchmarks, such as the Top
15% criterion, is constrained by the availability of locally accepted, comparable and standardised building stock data in certain
markets. Therefore, as of 31 December 2025, out of Erste Group’s consolidated mortgage and building renovation loans to
Households amounting to EUR 79.63 billion, only a relatively small fraction of 1.20 billion could be reported as taxonomy aligned,
despite most of this volume (EUR 75.80 billion) being assessed and reported as taxonomy eligible.
GAR Stock and GAR Flow are further detailed, notably per categories of assets and related counterparts, but also per combined
eligibility (across all six environmental objectives) and alignment towards each environmental objective within Template 3 ‘GAR
KPI Stock’ and Template 4 ‘GAR KPI Flow’ respectively. These templates are disclosed in both the turnover view and the CapEx
view, with no ‘T-1’ comparative sections, in accordance with the Annex VI as modified by the revised EU Taxonomy DDA. In
accordance with the revised EU Taxonomy DDA, both these templates newly include columnar sections respectively dedicated to
disclosing the proportion of aligned assets into the related eligible assets, as well as the proportion of non-assessed assets into the
related total assets covered by the GAR calculation.
FinGuar KPI Stock (turnover view and CapEx view)
Whilst the GAR refers to credit institution’s on-balance assets, the FinGuar KPI focuses on credit institution’s off-balance
exposures. Unlike the GAR, Erste Group’s FinGuar Stock KPI has acknowledged a relative stability on a year-on-year basis: from
14.20% as of 31 December 2024 to 13.33% as of 31 December 2025 (turnover view) and respectively from 16.94% as of
31 December 2024 to 15.66% as of 31 December 2025 (CapEx view). This development can be plausibly explained by the limited
year-on-year change in the specific population of underlying CSRD-obligated counterparts and the related taxonomy KPIs applied,
but it has been also slightly adversely influenced by local governments becoming a relevant counterpart sub-category for this KPI in
accordance with the revised EU Taxonomy DDA, along CSRD-obligated undertakings, taking into account that the aforementioned
year-end 2024 comparatives were not recalculated in this respect.
FinGuar KPI Stock and FinGuar KPI Flow are further detailed, notably per categories of assets and related counterparts, but also
per combined eligibility across all 6 environmental objectives and alignment towards each environmental objective within
Template 5 ‘KPI Off balance-sheet exposures’. These templates are disclosed in both the turnover view and the CapEx view, as
well as in both stock and flow views, with no comparative section included. The template also discloses the proportion of any non-
assessed exposures into the total amount of related off-balance sheet exposures covered by Taxonomy.
Template 2 GAR sector information
This template provides, in both stock turnover view and stock CapEx view, a breakdown per the applicable NACE codes of all the
eligible and aligned amounts featured in Template 1 as assets covered in the GAR calculation, limited to the first 10 NACE codes in
terms of materiality of the related gross carrying amounts. Template 2 features two additional rows dedicated to the on-balance
banking book exposures covered by the EU Taxonomy and fully (specific-purpose) or partly (general-purpose) attributable to the
Nuclear and respectively Fossil Gas energy sectors, either directly (CSRD-obligated non-financial undertakings primarily active in
the mentioned energy sectors) or indirectly (CSRD-obligated financial undertakings exposed in their turn to CSRD-obligated non-
financial undertakings primarily active in the mentioned energy sectors).
The taxonomy-eligible and respectively taxonomy-aligned amounts disclosed in the above mentioned nuclear and respectively
fossil gas related additional two rows of Template 2, when expressed as respective proportions into Group’s total assets covered by
the GAR calculation, are as follows:
56
GAR Stock (turnover view)

| Nuclear energy activities | Fossil gas activities
| Dec 24* | Dec 25 | Dec 24* | Dec 25
Eligibility proportion | 0.13% | 0.14% | 0.21% | 0.40%
Alignment proportion | 0.13% | 0.14% | 0.00% | 0.00%

GAR Stock (CapEx view)

| Nuclear energy activities | Fossil gas activities
| Dec 24* | Dec 25 | Dec 24* | Dec 25
Eligibility proportion | 0.18% | 0.09% | 0.26% | 0.30%
Alignment proportion | 0.18% | 0.09% | 0.00% | 0.04%

GAR Flow (turnover view)

| Nuclear energy activities | Fossil gas activities
| Dec 24* | Dec 25 | Dec 24* | Dec 25
Eligibility proportion | 0.14% | 0.48% | 0.48% | 0.81%
Alignment proportion | 0.14% | 0.48% | 0.01% | 0.01%

GAR Flow (CapEx view)

| Nuclear energy activities | Fossil gas activities
| Dec 24* | Dec 25 | Dec 24* | Dec 25
Eligibility proportion | 0.20% | 0.33% | 0.59% | 0.79%
Alignment proportion | 0.20% | 0.32% | 0.01% | 0.18%

*)retrospectively calculated for comparability purposes only, using as numerators the relevant amounts reported at 31 December 2024 in the formerly required Nuclear & Fossil Gas related
templates 2 and 4 in relation to GAR and as denominators the total assets covered by the GAR calculation as at 31 December 2024, recalculated consistently to 31 December 2025, i.e.
based on the ‘symmetrical’ approach to the GAR calculation as required by the revised EU Taxonomy DDA.
Group’s similar proportions in respect of financial guarantee off-balance sheet exposures covered by the EU Taxonomy are
additionally summarized below:
FinGuar Stock (turnover view)

| Nuclear energy activities | Fossil gas activities
| Dec 24* | Dec 25 | Dec 24* | Dec 25
Eligibility proportion | 0.13% | 0.12% | 0.80% | 0.97%
Alignment proportion | 0.11% | 0.10% | 0.03% | 0.00%

FinGuar Stock (CapEx view)

| Nuclear energy activities | Fossil gas activities
| Dec 24* | Dec 25 | Dec 24* | Dec 25
Eligibility proportion | 0.22% | 0.13% | 0.59% | 0.73%
Alignment proportion | 0.21% | 0.11% | 0.02% | 0.04%

FinGuar Flow (turnover view)

| Nuclear energy activities | Fossil gas activities
| Dec 24* | Dec 25 | Dec 24* | Dec 25
Eligibility proportion | 0.05% | 0.06% | 0.33% | 0.71%
Alignment proportion | 0.05% | 0.04% | 0.00% | 0.00%

FinGuar Flow (CapEx view)

| Nuclear energy activities | Fossil gas activities
| Dec 24* | Dec 25 | Dec 24* | Dec 25
Eligibility proportion | 0.00% | 0.05% | 0.27% | 0.36%
Alignment proportion | 0.00% | 0.04% | 0.00% | 0.00%

*)retrospectively calculated for comparability purposes only, using as numerators the relevant amounts reported at 31 December 2024 in the formerly required Nuclear & Fossil Gas related
templates 2 and 4 in relation to FinGuar KPI and as denominators the total financial guarantee off-balance sheet exposures covered by the EU Taxonomy as at 31 December 2024.
57
As mentioned above, Erste Group does not disclose its AuM KPI as of 31 December 2025 in any of the applicable views, due to
applying the ‘de minimis’ provision of the revised EU Taxonomy DDA with respect to the credit institution’s main Taxonomy KPIs
covering assets or off-balance sheet items contributing by less than 10% to institution’s net annual turnover. Therefore, the related
proportions in respect of the taxonomy-eligible and respectively taxonomy-aligned amounts attributable to the nuclear energy and
respectively fossil gas activities, as presented above with regards to GAR (all views) and respectively FinGuar (all views) have not
been determined and are therefore not available and not disclosed with regards to AuM KPI.
According to the revised EU Taxonomy DDA, Template 2 does not feature a ‘T-1’ comparative section and is provided as both stock
and flow, in both turnover and CapEx view.
Revised EU Taxonomy DDA's brought forward disclosures on financings of Nuclear and Fossil Gas related
economic activities
According to the revised EU Taxonomy DDA, such disclosures are limited to those already captured in Template 2, as described
above. Following the deletion of Annex XII to the EU Taxonomy Disclosures Regulation, the Nuclear and Fossil Gas additional
templates formerly required and consequently published by Erste Group for the year-ends 2024 and 2023 are no longer featured in
Erste Group’s EU Taxonomy disclosures as at 31 December 2025.
SELECTED KPIS’ OVERVIEW
As of 31 December 2025, Erste Group’s total eligibility KPI and total GAR can be summarized as follows:
Turnover view
_ Group’s consolidated taxonomy eligible assets amount to EUR 87.66 billion (2024: EUR 82.66 billion), representing 75.6% (2024
as formerly reported 32.4% and as recalculated 76.9%) of the total covered assets.
_ Group’s consolidated taxonomy aligned assets amount to EUR 2.92 billion (2024: EUR 1.59 billion), representing 2.52% (2024 as
formerly reported: 0.62% and as recalculated 1.48%) of the total covered assets.
Capex view
_ The Group’s taxonomy eligible assets amount to EUR 89.16 billion (2024: EUR 83.89 billion), representing 76.9% (2024 as
formerly reported 32.9% and as recalculated 78.06%) of the total covered assets.
_ The Group’s taxonomy aligned assets amount to EUR 3.41 billion (2024: EUR 2.60 billion), representing 2.94% (2024 as formerly
reported 1.02% and as recalculated 2.42%) of the total covered assets.
In the turnover view, the total eligibility KPI and total GAR as of 31 December 2025 are further comparatively analysed and
presented in the charts below:
Eligible on-balance exposure per economic sector of
the counterparty
Aligned on-balance exposure per economic sector of
the counterparty
Therefore, as of 31 December 2025, Erste Group’s total taxonomy eligibility KPI consists of the following main components:
_ Financing to private households to the amount of EUR 75.8 billion (2024: EUR 70.5 billion), the purpose of which corresponds to
taxonomy eligible activities in the real estate and the automotive sector.
_ Use of proceeds known and unknown financing to non-financial undertakings to the amount of EUR 5.4 billion (2024:
EUR 4.9 billion) and to financial undertakings to the amount of EUR 3.1 billion (2024: EUR 3.8 billion), the use of proceeds
unknown financing having been classified proportionately as taxonomy eligible based on the eligibility KPIs published by the
respective counterparties.
_ Financing to local and regional governments to the amount of EUR 3.3 billion (2024 : EUR 3.4 billion), the purpose of which
corresponds to taxonomy eligible activities.
58
The first two categories of taxonomy-eligible assets mentioned above further contribute to Group’s GAR as at 31 December 2025, as
follows:
_ Use of proceeds known mortgage and building renovation loans to private households to the amount of EUR 1.20 billion (2024:
EUR 0.00 billion).
_ Use of proceeds known and unknown financing to financial and respectively non-financial undertakings to the amount of EUR
0.34 billion (2024: EUR 0.39 billion) and respectively EUR 1.38 billion (2024: EUR 1.20 billion), with 89.9% (2024: 89.0%) of the
combined aligned amount resulting from use of proceeds unknown financing that were classified proportionately as taxonomy
aligned, based on the alignment KPIs published by the respective counterparties.
Removal of GAR structural constraints and developments in data availability
Up to 31 December 2024, the taxonomy disclosures and KPIs of Erste Group as of 31 December 2025, as well as their year-on-year
development as outlined above, have been inherently influenced by both structural constraints arising from both the legal design of
the GAR and the restricted scope of the CSRD, as well as by various other data availability limitations. Such constraints and
limitations have considerably reduced in terms of their adverse GAR impact, as further described below.
Removal of GAR structural constraints
Due to the extensive information required to evaluate the applicable taxonomy alignment technical criteria (SC, DNSH), as well as
the MS compliance, the scope of application of the EU Taxonomy Disclosures Regulation is limited by legislation (at EU level:
CSRD), as far as qualifying exposures to undertakings are concerned, to those that are CSRD-obligated as at the current reporting
year-end, as well as to any subsidiaries thereof. For Erste Group as a universal bank, this meant, for both year-ends 2024 and 2023,
namely before the issuance of the revised EU Taxonomy DDA and their first time application by Erste Group as at 31 December
2025, that a significant part of the portfolio (small and medium-sized enterprises not CSRD-obligated or part of such a group) could
be considered in the numerators of the taxonomy eligibility KPI and the GAR, with most of them were qualifying for the respective
denominators only (‘GAR structural asymmetry’).
As outlined above in the introductory part of this chapter, the revised EU Taxonomy DDA removed GAR’s structural asymmetry by
ensuring the scopes of assets covered in the numerator and respectively the denominator of the GAR are the same, with the direct
consequence of assets previously falling in the scope of the GAR denominator only, notably the non-trading exposures towards
CSRD non-obligated undertakings, being removed in full from the GAR calculation. Another consequence for Erste Group was that
taxonomy inherently non-eligible exposures towards Households and respectively Local Governments, notably general or sundry
purpose consumer loans to retail customers and general or sundry financings of Local Governments, previously deemed relevant
for both GAR’s numerator and denominator although inherently unable to make any contribution to the former, have been
removed in full from the GAR calculation as well.
Whilst, on the one hand, the revised EU Taxonomy DDA have thus removed GAR’s structural asymmetry, GAR’s coverage, hence
arguably GAR’s representativeness of reporting credit institution’s total assets has on the other hand contracted accordingly. Thus,
as at 31.12.2024, the proportion of total covered assets into total assets, as previously reported by Erste Group, amounted to 71,27%
for stock and 58,61% for flow. When, for comparability purposes only, they are retrospectively recalculated based on the revised EU
Taxonomy DDA, they decrease to 30.04% and respectively 18.14%. At 31 December 2025, as featured in the Template 0 presented
below, Group’s GAR coverage amounts to 31.13% (stock) and respectively 19.42% (flow).
Developments in data availability
Retail lending - Climate Change Adaptation related DNSH assessment of taxonomy-eligible mortgage and building
renovation loans to Households substantially contributing to the Climate Change Mitigation environmental objective.
Related to real estate and vehicle financing towards private households, as well as financing of housing or other taxonomy eligible
specific purpose projects by local governments, for collateral which meets substantial contribution criteria of climate change
mitigation (e.g. energy efficiency), an assessment of climate-related physical risks and vulnerabilities is performed to ensure
compliance with the DNSH criterion on climate change adaptation. This assessment is based on recognized scientific sources, best-
practice methodologies and available climate risk data, including external datasets and modelling where appropriate.
These efforts resulted in an enhanced methodology and more comprehensive underlying internal processes for assessing the DNSH
criterion for Climate Change Adaptation with regards to the mortgage loans to Households financing building acquisition/
ownership or building renovation identified as substantially contributing to the Climate Change Mitigation based on the related
financed real estate collateral being substantiated as highly energy efficient, by reference to the related building’s Energy
Performance Certificate as issued by the relevant local authority either bearing the Label A or - in the case of Czechia and Hungary
- providing Primary Energy Demand (PED) among the top 15% most energy-efficient residential building stock, based on relevant
PED thresholds, as determined from external regional technical studies to ensure national benchmarking.
59
In essence, for each such CCM substantially contributing loan to Households, the DNSH criterion had been deemed met for CCA
provided that all 21 physical risks identified as relevant for the real estate sector and the countries where Erste Group activates as
retail lender (out of the full list of 35 as per Annex 1 to the EU Taxonomy Regulation) have been determined as scoring lower than
‘high’ or, in the case of the risks of subsidence, drought and precipitations, ‘very high’ severity in the specific geolocation of the
related real estate collateral, across all applicable statistically modelled RCP (representative concentration pathway) scenarios with
regards to greenhouse gas concentration expectations and all available time horizons by reference to the generally accepted span of
a residential building’s economic life, hence irrespective of the expected remaining maturity of the related loans. The setting of the
scoring threshold to ‘very high’ for the DNSH criterion to be deemed failed in the particular case of the above mentioned three
physical risks reflects Erste Group’s reasonable expectation that all due adaptation measures are by default embedded into the
advanced design and construction of high-energy efficient buildings. Also, as far as the risk of floods is concerned, by factoring in
the related ‘defended risk’ indices into the above described DNSH assessment approach, Erste Group has ensured that the due
adaptation measures were considered in the retrieved scoring, hence in the applied ‘high’ scoring threshold below which the DNSH
criterion was deemed met with respect to this particular physical risk.
All such CCM substantially contributing loans for which, based on the aforementioned approach, the DNSH criterion for CCA has
been deemed met have been further classified as taxonomy-aligned, additionally based on the MS non-applicability as stemming
from EU Taxonomy DDA’s Annex V’s definition of the numerator of the Retail lending’s alignment KPI, further corroborated to
Erste Group’s interpretation that the FAQ 37 from EC’s Third Commission Notice (indicating that the MS compliance assessment
for retail lending should address the corporate manufacturers upstream retail client’s supply chain with regards to the financed
object) does not apply to buildings as far as the financed eligible activity is acquisition or ownership, rather than construction.
Environmental objectives 3-6
Erste Group’s EU Taxonomy disclosures as of year-end 2024 have covered already the entire set of environmental objectives for the
alignment figures for general purpose loans. As at 31 December 2025, the applied client alignment KPIs for the environmental
objectives 3-6 continue to have, in general, relatively low values.
Furthermore, regarding both new and existing business with CSRD-obligated undertakings and local governments – despite
considerable efforts to further advance the examination of individual transactions – in some cases there is still insufficient
information and data basis on the customer side to determine whether these transactions can be classified as taxonomy-eligible
with regards to the environmental objectives 3-6, which resulted in relatively infrequent ‘use of proceeds known’ financings having
been classified as of 31 December 2025 as eligible by reference to these environmental objectives, none of them being further
assessed as taxonomy-aligned for the related objective. In the same time, the Taxonomy templates as per the Annex VI as modified
by the revised EU Taxonomy DDA do no longer require the breakdown of eligible exposures covered by Taxonomy per the six
environmental objectives.
Reporting methodology and underlying assumptions and interpretations
(Gross) carrying amounts of assets
Regarding the (gross) carrying amounts of assets represented in Template 1, the following approach was taken:
_ For all relevant financial assets at amortised cost and debt securities at FVOCI (Fair Value Through Other Comprehensive
Income), the cost carried forward before adjustment of value adjustments was used - regardless of the counterparty type.
_ For all other assets falling into lines 1-40 of Template 1, the gross carrying amount, i.e., the amount actually accounted for and
used in the CRR-consolidated IFRS FINREP balance sheet, was used. This means:
_ For performing debt instruments at FVPL (Fair Value Through Profit or Loss), the gross carrying amount corresponds to the
fair value. For non-performing debt instruments at FVPL, the gross carrying amount corresponds to the fair value after the
accumulation of any accumulated negative changes in fair value due to credit risk.
_ For all investments in associated and joint ventures, the carrying value in accordance with IAS28/IFRS11 is used.
_ For all equity instruments at FVPL, the fair value is used.
_ For all non-financial assets (‘collateral obtained by taking possession’ or ‘Other categories of assets’), the carrying amounts
disclosed according to IFRS are used.
CSRD-obligated financial and non-financial undertakings and use of their KPIs
All companies considered to be public interest entities and employing more than 500 people at either individual or consolidated
level have been obligated to report EU Taxonomy disclosures as of 31 December 2024 and co ntinue to be so as of 31 December 2025
under the CSRD, taking into account EC’s ‘stop the clock’ decision referred to in the opening part of this chapter. Financial and
non-financial undertakings, that are parents of obligated groups, must publish their KPIs on a consolidated basis. These KPIs are
used for the purpose of determining Erste Group’s KPIs for qualifying exposures towards all subsidiaries of this group (‘closest
reporting parent’), unless KPIs are available for the specific single counterparty.
60
Flow
For the purpose of preparing the ‘flow’ views of the Templates 1, 2, 4 and 5, ‘flow’ has been defined as a sub-set of ‘stock’, limited to
related asset deals’ having been initially recognised during the current reporting date, with the exception of n on-financial assets
and financial assets not having the nature of loans and advances, debt securities or equity instruments, for which ‘flow’ has been
deemed zero.
Significant notes for the consideration of assets in Template 1
Accepted for the numerator and the denominator of the GAR and therefore relevant for the taxonomy eligibility or alignment
review are non-trading loans and advances, debt securities, equity instruments having CSRD-obligated financial or non-financial
undertakings as counterparties (or subsidiaries thereof), as well as real estate and car financing to private households, use of
proceeds known financing with local governments and real estate collateral obtained through taking possession. As outlined above,
Erste Group chose to not consider any ‘exposures included on a voluntary basis’ into Group’s GAR calculation as at 31 December
2025.
Financial and non-financial undertakings
_ Qualifying assets in relation to financial and non-financial undertakings are included in the numerator of the GAR if the direct
counterparty is CSRD-obligated or a subsidiary of a CSRD-obligated group.
_ Financing to not CSRD-obligated financial and non-financial undertakings, which are not part of a CSRD-obligated group, were
fully excluded from the GAR calculation, irrespective of their domicile (EU or Non-EU)
_ Financing to Multilateral Development Banks listed in the paragraphs in Article 117(1), or Article 117(2) Regulation (EU)
575/2013 (CRR) are considered credit institutions according to the clarifications of the ‘Environmental Act’ and are allowed for
the GAR numerator and denominator provided they are based in the EU.
Private households
_ Financing to private households and subject to further assessment for taxonomy eligibility or alignment comprises only real
estate-related financing or car loans (the latter from 1.1.2022). The remaining exposures to households (essentially: general-
purpose financing) have been fully excluded from the GAR calculation, the related gross carrying amounts being therefore
included in column a of Template’s 1 row 25 ‘Undertakings and entities not subject to CSRD’.
_ Financing of building renovation and collateralised by residential immovable property are solely included in the row ‘of which
building renovation loans’ in order to avoid double counting.
Local & regional governments
Financing to local or regional governments and subject to further assessment for taxonomy eligibility or alignment comprises only
financing where the respective use of proceeds is known. Financing without a known use of proceeds has been fully excluded from
the GAR calculation, the related gross carrying amounts being therefore included in column a of Template’s 1 row 25
‘Undertakings and entities not subject to CSRD’.
N uclear & fossil gas activities related new section of Template 2 ‘GAR sector information’ (all views)
In the portfolio of Erste Group, there are no material ‘use of proceeds known’ financings related to the activities in the area of
nuclear energy and fossil gas listed in the Commission Delegated Regulation (EU) 2022/1214. Consequently, populating the
respective two additional rows newly required by the revised EU Taxonomy DDA within the Template 2 (all views) as at 31
December 2025 is essentially based on the KPIs published by the related counterparties (namely: CSRD-obligated energy companies
or CSRD-obligated banks or insurances directly exposed to such energy companies) in their Nuclear & Fossil gas related templates
2 and 4 (related views), as reported at 31 December 2024 based on the requirements of the former Annex XII to the EU Taxonomy
DDA, meanwhile deleted by the revised EU Taxonomy DDA.
Summary of the revised EU Taxonomy DDA's effects on the comparative information as of year-end
2024
In accordance with the Taxonomy templates’s layouts as per the Annex VI to the EU Taxonomy DDA as modified by the revised
EU Taxonomy DDA, no prior-year comparatives are featured in any of them. However, for comparability purposes only in the
context of addressing Annex XI’s requirement of providing qualitative disclosures around the year-on-year development in
reporting institution’s main Taxonomy KPIs, Erste Group is summarizing below prior year’s Taxonomy KPIs and other related
quantitative information as at 31 December 2024, both as previously published and as recalculated.
61

| As previously published | As recalculated
Template 0 |  |
GAR% Stock – turnover | 0.62% | 1.48%
GAR% Stock – CapEx | 1.02% | 2.42%
% coverage over total assets - stock | 71.27% | 30.04%
GAR% Flow – turnover | 1.11% | 3.59%
GAR% Flow – CapEx | 1.63% | 5.27%
% coverage over total assets - flow | 58.61% | 18.14%
Template 3 turnover view, additional changes |  |
Eligibility KPI – Households | 67.81% | 94.72%
Eligibility KPI – Local Governments | 51.03% | 96.81%
Eligibility KPI – total | 32.41% | 76.91%
Template 3 CapEx view, additional changes |  |
Eligibility KPI – Households | 67.81% | 94.72%
Eligibility KPI – Local Governments | 51.03% | 96.81%
Eligibility KPI – total | 32.90% | 78.06%

The comparative figures that would have been impacted as detailed above are not presented once again accordingly in the
respective views of the related templates, given that, according to the revised EU Taxonomy DDA, the related templates no longer
feature a comparative ‘T-1’ section.
Consideration of EU Taxonomy in Erste Group’s business strategies, product design processes and
engagement with clients and counterparties
Erste Group informs its customers about possible cost advantages that can arise from taxonomy-aligned disclosure. The GAR is
currently not integrated into the strategic board internal remuneration framework and should not be considered as performance-
linked KPI for management incentives.
0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation

|  | Total exposure to Taxonomy- aligned activities (EUR million) | KPI | KPI | % coverage (over total assets) | non assessed exposures (% of covered assets) | non assessed exposures (% of covered assets)
|  | Turnover- based | CapEx- based | Turnover- based | CapEx- based |  | Turnover- based | CapEx- based
Main KPI | Green asset ratio (GAR) stock | 2,924 | 3,409 | 2.52% | 2.94% | 31.13% | 0.00% | 0.00%

|  | Total exposure to Taxonomy- aligned activities (EUR million) | KPI | KPI | % coverage (over total assets) | non assessed exposures (% of covered assets) | non assessed exposures (% of covered assets)
|  | Turnover- based | CapEx-based | Turnover- based | CapEx- based |  | Turnover- based | CapEx- based
Additional KPI | GAR (flow) | 698 | 798 | 3.10% | 3.55% | 19.42% | 0.00% | 0.00%
| Trading book | 0 | 0 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
| Financial guarantees | 510 | 599 | 13.33% | 15.66% | 48.93% | 0.00% | 0.00%
| Assets under management | 0 | 0 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
| Fees and commissions income | 0 | 0 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%

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1.1. Assets for the calculation of GAR, stock turnover-based view

| 31 December 2025 in EUR million | a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p
Total [gross] carrying amount | Of which Taxon- omy- eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed expo- sures |  |  |
Of which Taxon- omy- aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transi- tional | Of which enabling | Of which financing non- material activities or counter- parties | Of which expo- sures financing counter- parties reporting in accor- dance with Article 7(9) | Of which not as- sessed consid- ered non- material by the credit institution
Climate Change Mitigation (CCM) | Climate Change Adapta- tion (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiver- sity and Eco- systems (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 115,879 | 87,650 | 2,924 | 2,900 | 12 | 2 | 9 | 3 | 0 | 1,374 | 215 | 731 | 0 | 0 | 0 | 0
3 | Financial undertakings | 15,543 | 3,143 | 343 | 330 | 8 | 0 | 6 | 0 | 0 | 0 | 37 | 112 | 0 | 0 | 0 | 0
4 | Loans and advances | 7,990 | 1,294 | 148 | 141 | 7 | 0 | 1 | 0 | 0 | 0 | 23 | 61 | 0 | 0 | 0 | 0
5 | Debt securities, including UoP | 7,310 | 1,803 | 188 | 183 | 0 | 0 | 5 | 0 | 0 | 0 | 14 | 51 | 0 | 0 | 0 | 0
6 | Equity instruments | 243 | 46 | 7 | 7 | 0 | 0 | 0 | 0 | 0 | — | 0 | 0 | 0 | 0 | 0 | 0
7 | Non-financial undertakings | 17,135 | 5,356 | 1,381 | 1,369 | 4 | 2 | 3 | 3 | 0 | 174 | 178 | 619 | 0 | 0 | 0 | 0
8 | Loans and advances | 15,435 | 4,789 | 1,227 | 1,217 | 4 | 1 | 2 | 3 | 0 | 174 | 158 | 557 | 0 | 0 | 0 | 0
9 | Debt securities, including UoP | 1,396 | 480 | 146 | 146 | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 60 | 0 | 0 | 0 | 0
10 | Equity instruments | 304 | 87 | 7 | 7 | 0 | 0 | 0 | 0 | 0 | — | 0 | 3 | 0 | 0 | 0 | 0
11 | Households | 79,865 | 75,815 | 1,200 | 1,200 | 0 | — | 0 | — | — | 1,200 | 0 | 0 | 0 | 0 | 0 | 0
12 | of which loans collateralised by residential immovable property | 76,094 | 72,261 | 1,196 | 1,196 | 0 | — | 0 | — | — | 1,196 | 0 | 0 | 0 | 0 | 0 | 0
13 | of which building renovation loans | 3,539 | 3,539 | 4 | 4 | 0 | — | 0 | — | — | 4 | 0 | 0 | 0 | 0 | 0 | 0
14 | of which motor vehicle loans | 233 | 15 | 0 | 0 | — | — | — | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
15 | Local governments financing | 3,336 | 3,336 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
16 | Housing financing | 113 | 113 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
17 | Other local government financing | 3,224 | 3,224 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 9 | 6 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
19 | Exposures included on a voluntary basis | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
20 | Total GAR assets | 115,888 | 87,657 | 2,924 | 2,900 | 12 | 2 | 9 | 3 | 0 | 1,374 | 215 | 731 | 0 | 0 | 0 | 0
21 | Assets not covered for GAR calculation | 256,387 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
22 | Central governments and Supranational issuers | 59,621 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —

63

23 | Central banks exposure | 36,330 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
24 | Trading book | 9,377 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
25 | Undertakings and entities not subject to CSRD | 138,098 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 92,516 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
27 | Loans and advances | 89,195 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
28 | of which loans collateralised by commercial immovable property | 33,675 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
29 | of which building renovation loans | 1,288 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
30 | Debt securities | 1,350 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
31 | Equity instruments | 1,971 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 9,618 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
33 | Loans and advances | 8,358 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
34 | Debt securities | 1,247 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
35 | Equity instruments | 14 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
36 | Derivatives | 231 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
37 | On demand interbank loans | 1,526 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
38 | Cash and cash-related assets | 3,376 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
39 | Other categories of assets (e.g. Goodwill, commodities etc.) | 7,828 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
40 | Total assets | 372,275 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | 3,823 | 1,471 | 510 | 480 | 0 | 0 | 28 | 1 | 0 | 0 | 3 | 421 | 0 | 0 | 0 | 0
42 | Assets under management | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
43 | Of which debt securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
44 | Of which equity instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

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1.2 Assets for the calculation of GAR, flow turnover-based view

| Financial year 2025 in EUR million | a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p
Total [gross] carrying amount | Of which Taxon- omy- eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed expo- sures |  |  |
Of which Taxon- omy- aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transi- tional | Of which enabling | Of which financing non- material activities or counter- parties | Of which expo- sures financing counter- parties reporting in accor- dance with Article 7(9) | Of which not as- sessed consid- ered non- material by the credit institution
Climate Change Mitigation (CCM) | Climate Change Adapta- tion (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiver- sity and Eco- systems (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 22,477 | 13,040 | 698 | 687 | 1 | 0 | 8 | 2 | 0 | 140 | 124 | 229 | 0 | 0 | 0 | 0
3 | Financial undertakings | 5,972 | 1,173 | 138 | 132 | 0 | 0 | 5 | 0 | 0 | 0 | 8 | 60 | 0 | 0 | 0 | 0
4 | Loans and advances | 4,013 | 561 | 67 | 66 | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 32 | 0 | 0 | 0 | 0
5 | Debt securities, including UoP | 1,951 | 611 | 71 | 66 | 0 | 0 | 5 | 0 | 0 | 0 | 3 | 28 | 0 | 0 | 0 | 0
6 | Equity instruments | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — | 0 | 0 | 0 | 0 | 0 | 0
7 | Non-financial undertakings | 5,180 | 1,219 | 419 | 414 | 1 | 0 | 2 | 2 | 0 | 0 | 116 | 168 | 0 | 0 | 0 | 0
8 | Loans and advances | 4,852 | 1,126 | 402 | 396 | 1 | 0 | 2 | 2 | 0 | 0 | 108 | 165 | 0 | 0 | 0 | 0
9 | Debt securities, including UoP | 198 | 67 | 17 | 17 | 0 | 0 | 0 | 0 | 0 | 0 | 8 | 3 | 0 | 0 | 0 | 0
10 | Equity instruments | 130 | 26 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | — | 0 | 0 | 0 | 0 | 0 | 0
11 | Households | 10,944 | 10,267 | 140 | 140 | 0 | — | 0 | — | — | 140 | 0 | 0 | 0 | 0 | 0 | 0
12 | of which loans collateralised by residential immovable property | 10,352 | 9,774 | 140 | 140 | 0 | — | 0 | — | — | 140 | 0 | 0 | 0 | 0 | 0 | 0
13 | of which building renovation loans | 482 | 482 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
14 | of which motor vehicle loans | 110 | 11 | 0 | 0 | — | — | — | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
15 | Local governments financing | 381 | 381 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
16 | Housing financing | 0 | 0 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
17 | Other local government financing | 381 | 381 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 0 | 0 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
19 | Exposures included on a voluntary basis | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
20 | Total GAR assets | 22,477 | 13,040 | 698 | 687 | 1 | 0 | 8 | 2 | 0 | 140 | 124 | 229 | 0 | 0 | 0 | 0

65

21 | Assets not covered for GAR calculation | 93,288 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
22 | Central governments and Supranational issuers | 11,709 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
23 | Central banks exposure | 27,831 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
24 | Trading book | 8,201 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
25 | Undertakings and entities not subject to CSRD | 42,249 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 24,229 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
27 | Loans and advances | 23,627 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
28 | of which loans collateralised by commercial immovable property | 6,379 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
29 | of which building renovation loans | 155 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
30 | Debt securities | 427 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
31 | Equity instruments | 175 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 5,626 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
33 | Loans and advances | 5,382 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
34 | Debt securities | 240 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
35 | Equity instruments | 4 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
36 | Derivatives | 0 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
37 | On demand interbank loans | 833 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
38 | Cash and cash-related assets | 2,465 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
39 | Other categories of assets (e.g. Goodwill, commodities etc.) | 0 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
40 | Total assets | 115,765 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | 1,206 | 421 | 145 | 127 | 0 | 0 | 18 | 0 | 0 | 0 | 1 | 121 | 0 | 0 | 0 | 0
42 | Assets under management | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
43 | Of which debt securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
44 | Of which equity instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

66
1.3 Assets for the calculation of GAR, CapEx-based view, stock

| 31 December 2025 in EUR million | a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p
Total [gross] carrying amount | Of which Taxon- omy- eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed expo- sures |  |  |
Of which Taxon- omy- aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transition al | Of which enabling | Of which financing non- material activities or counter- parties | Of which expo- sures financing counter- parties reporting in accor- dance with Article 7(9) | Of which not as- sessed consid- ered non- material by the credit institution
Climate Change Mitigation (CCM) | Climate Change Adapta- tion (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiver- sity and Eco- systems (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 115,879 | 89,150 | 3,409 | 3,382 | 9 | 0 | 15 | 3 | 0 | 1,374 | 191 | 1,068 | 0 | 0 | 0 | 0
3 | Financial undertakings | 15,543 | 3,439 | 427 | 421 | 3 | 0 | 3 | 0 | 0 | 0 | 35 | 165 | 0 | 0 | 0 | 0
4 | Loans and advances | 7,990 | 1,589 | 193 | 190 | 3 | 0 | 0 | 0 | 0 | 0 | 21 | 94 | 0 | 0 | 0 | 0
5 | Debt securities, including UoP | 7,310 | 1,804 | 227 | 224 | 0 | 0 | 2 | 0 | 0 | 0 | 13 | 71 | 0 | 0 | 0 | 0
6 | Equity instruments | 243 | 47 | 7 | 7 | 0 | 0 | 0 | 0 | 0 | — | 0 | 0 | 0 | 0 | 0 | 0
7 | Non-financial undertakings | 17,135 | 6,560 | 1,781 | 1,760 | 6 | 0 | 12 | 3 | 0 | 174 | 156 | 902 | 0 | 0 | 0 | 0
8 | Loans and advances | 15,435 | 5,807 | 1,573 | 1,555 | 5 | 0 | 10 | 3 | 0 | 174 | 126 | 773 | 0 | 0 | 0 | 0
9 | Debt securities, including UoP | 1,396 | 663 | 191 | 188 | 1 | 0 | 2 | 0 | 0 | — | 29 | 117 | 0 | 0 | 0 | 0
10 | Equity instruments | 304 | 90 | 17 | 17 | 0 | 0 | 0 | 0 | 0 | — | 1 | 12 | 0 | 0 | 0 | 0
11 | Households | 79,865 | 75,815 | 1,200 | 1,200 | 0 | — | 0 | — | — | 1,200 | 0 | 0 | 0 | 0 | 0 | 0
12 | of which loans collateralised by residential immovable property | 76,094 | 72,261 | 1,196 | 1,196 | 0 | — | 0 | — | — | 1,196 | 0 | 0 | 0 | 0 | 0 | 0
13 | of which building renovation loans | 3,539 | 3,539 | 4 | 4 | 0 | — | 0 | — | — | 4 | 0 | 0 | 0 | 0 | 0 | 0
14 | of which motor vehicle loans | 233 | 15 | 0 | 0 | — | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
15 | Local governments financing | 3,336 | 3,336 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
16 | Housing financing | 113 | 113 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
17 | Other local government financing | 3,224 | 3,224 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 9 | 6 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
19 | Exposures included on a voluntary basis | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
20 | Total GAR assets | 115,888 | 89,157 | 3,409 | 3,382 | 9 | 0 | 15 | 3 | 0 | 1,374 | 191 | 1,068 | 0 | 0 | 0 | 0
21 | Assets not covered for GAR calculation | 256,387 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
22 | Central governments and Supranational issuers | 59,621 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
23 | Central banks exposure | 36,330 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —

67

24 | Trading book | 9,377 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
25 | Undertakings and entities not subject to CSRD | 138,098 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 92,516 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
27 | Loans and advances | 89,195 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
28 | of which loans collateralised by commercial immovable property | 33,675 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
29 | of which building renovation loans | 1,288 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
30 | Debt securities | 1,350 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
31 | Equity instruments | 1,971 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 9,618 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
33 | Loans and advances | 8,358 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
34 | Debt securities | 1,247 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
35 | Equity instruments | 14 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
36 | Derivatives | 231 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
37 | On demand interbank loans | 1,526 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
38 | Cash and cash-related assets | 3,376 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
39 | Other categories of assets (e.g. Goodwill, commodities etc.) | 7,828 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
40 | Total assets | 372,275 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | 3,823 | 1,637 | 599 | 585 | 1 | 0 | 13 | 0 | 0 | 0 | 20 | 398 | 0 | 0 | 0 | 0
42 | Assets under management | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
43 | Of which debt securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
44 | Of which equity instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

68
1.4 Assets for the calculation of GAR, CapEx-based view, flow

| Financial year 2025 in EUR million | a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p
Total [gross] carrying amount | Of which Taxon- omy- eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed expo- sures |  |  |
Of which Taxon- omy- aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transi- tional | Of which enabling | Of which financing non- material activities or counter- parties | Of which expo- sures financing counter- parties reporting in accor- dance with Article 7(9) | Of which not as- sessed consid- ered non- material by the credit institution
Climate Change Mitigation (CCM) | Climate Change Adapta- tion (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiver- sity and Eco- systems (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 22,477 | 13,732 | 798 | 788 | 3 | 0 | 5 | 2 | 0 | 140 | 77 | 307 | 0 | 0 | 0 | 0
3 | Financial undertakings | 5,972 | 1,441 | 187 | 185 | 0 | 0 | 2 | 0 | 0 | 0 | 8 | 89 | 0 | 0 | 0 | 0
4 | Loans and advances | 4,013 | 812 | 97 | 97 | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 53 | 0 | 0 | 0 | 0
5 | Debt securities, including UoP | 1,951 | 628 | 90 | 88 | 0 | 0 | 2 | 0 | 0 | 0 | 3 | 35 | 0 | 0 | 0 | 0
6 | Equity instruments | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — | 0 | 0 | 0 | 0 | 0 | 0
7 | Non-financial undertakings | 5,180 | 1,644 | 470 | 463 | 3 | 0 | 3 | 2 | 0 | 0 | 69 | 218 | 0 | 0 | 0 | 0
8 | Loans and advances | 4,852 | 1,519 | 447 | 440 | 3 | 0 | 3 | 2 | 0 | 0 | 65 | 203 | 0 | 0 | 0 | 0
9 | Debt securities, including UoP | 198 | 98 | 22 | 22 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 14 | 0 | 0 | 0 | 0
10 | Equity instruments | 130 | 27 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | — | 0 | 0 | 0 | 0 | 0 | 0
11 | Households | 10,944 | 10,267 | 140 | 140 | 0 | — | 0 | — | — | 140 | 0 | 0 | 0 | 0 | 0 | 0
12 | of which loans collateralised by residential immovable property | 10,352 | 9,774 | 140 | 140 | 0 | — | 0 | — | — | 140 | 0 | 0 | 0 | 0 | 0 | 0
13 | of which building renovation loans | 482 | 482 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
14 | of which motor vehicle loans | 110 | 11 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
15 | Local governments financing | 381 | 381 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
16 | Housing financing | 0 | 0 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
17 | Other local government financing | 381 | 381 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 0 | 0 | 0 | 0 | 0 | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 0 | 0
19 | Exposures included on a voluntary basis | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
20 | Total GAR assets | 22,477 | 13,732 | 798 | 788 | 3 | 0 | 5 | 2 | 0 | 140 | 77 | 307 | 0 | 0 | 0 | 0
21 | Assets not covered for GAR calculation | 93,288 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
22 | Central governments and Supranational issuers | 11,709 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —

69

23 | Central banks exposure | 27,831 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
24 | Trading book | 8,201 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
25 | Undertakings and entities not subject to CSRD | 42,249 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 24,229 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
27 | Loans and advances | 23,627 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
28 | of which loans collateralised by commercial immovable property | 6,379 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
29 | of which building renovation loans | 155 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
30 | Debt securities | 427 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
31 | Equity instruments | 175 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 5,626 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
33 | Loans and advances | 5,382 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
34 | Debt securities | 240 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
35 | Equity instruments | 4 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
36 | Derivatives | 0 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
37 | On demand interbank loans | 833 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
38 | Cash and cash-related assets | 2,465 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
39 | Other categories of assets (e.g. Goodwill, commodities etc.) | 0 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
40 | Total assets | 115,765 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | 1,206 | 460 | 155 | 147 | 0 | 0 | 8 | 0 | 0 | 0 | 5 | 81 | 0 | 0 | 0 | 0
42 | Assets under management | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
43 | Of which debt securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
44 | Of which equity instruments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

70
2.1 GAR sector information, stock, turnover-based view

| a | b | c | d | e | f | g | h | i | j
| Breakdown by sector - NACE 4 digits level (code and label) 31 December 2025 in EUR million | Total [Gross] carrying amount | Of which Taxonomy eligible | Of which Taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Eco- systems (BIO)
1 | K64.19 Other monetary intermediation | 12,834 | 2,310 | 190 | 189 | 1 | 0 | 0 | 0 | 0
2 | O84.11 General public administration activities | 7,373 | 3,367 | 0 | 0 | 0 | 0 | 0 | 0 | 0
3 | L68.20 Renting and operating of own or leased real estate | 4,727 | 2,312 | 116 | 109 | 7 | 0 | 0 | 0 | 0
4 | D35.11 Production of electricity from non-renewable sources | 1,112 | 566 | 453 | 451 | 0 | 1 | 0 | 0 | 0
5 | T98.20 Undifferentiated service-producing activities of private households for own use | 987 | 194 | 0 | 0 | 0 | 0 | 0 | 0 | 0
6 | I55.10 Hotels and similar accommodation | 817 | 270 | 0 | 0 | 0 | 0 | 0 | 0 | 0
7 | Q86.22 Specialist medical practice activities | 763 | 357 | 9 | 9 | 0 | 0 | 0 | 0 | 0
8 | N77.11 Renting and leasing of motor vehicles | 736 | 244 | 25 | 25 | 0 | 0 | 0 | 0 | 0
9 | A01.50 Growing of tobacco | 728 | 53 | 0 | 0 | 0 | 0 | 0 | 0 | 0
10 | C29.32 Manufacture of other parts and accessories for motor vehicles | 591 | 126 | 41 | 40 | 0 | 0 | 1 | 0 | 0
11 | Nuclear activities | 29,463 | 167 | 165 | 0 | 0 | 0 | 0 | 0 | 0
12 | Fossil gas activities | 29,463 | 462 | 4 | 0 | 0 | 0 | 0 | 0 | 0
13 | Of which non-assessed exposures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

71
2.2 GAR sector information, flow, turnover-based view

| a | b | c | d | e | f | g | h | i | j
| Breakdown by sector - NACE 4 digits level (code and label) Financial year 2025 in EUR million | Total [Gross] carrying amount | Of which Taxonomy eligible | Of which Taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Eco- systems (BIO)
1 | K64.19 Other monetary intermediation | 4,926 | 862 | 75 | 75 | 0 | 0 | 0 | 0 | 0
2 | O84.11 General public administration activities | 1,514 | 401 | 0 | 0 | 0 | 0 | 0 | 0 | 0
3 | L68.20 Renting and operating of own or leased real estate | 534 | 242 | 9 | 9 | 0 | 0 | 0 | 0 | 0
4 | D35.11 Production of electricity | 445 | 191 | 167 | 166 | 0 | 0 | 0 | 0 | 0
5 | N77.11 Renting and leasing of cars and light motor vehicles | 433 | 128 | 14 | 14 | 0 | 0 | 0 | 0 | 0
6 | M70.10 Activities of head offices | 278 | 30 | 3 | 3 | 0 | 0 | 0 | 0 | 0
7 | G47.11 Retail sale in non-specialised stores with food, beverages or tobacco predominating | 242 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0
8 | J61.10 Wired telecommunications activities | 239 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0
9 | C29.10 Manufacture of motor vehicles | 228 | 175 | 17 | 17 | 0 | 0 | 0 | 0 | 0
10 | Q86.22 Specialist medical practice activities | 206 | 46 | 3 | 3 | 0 | 0 | 0 | 0 | 0
11 | Nuclear activities | 10,924 | 108 | 108 | 0 | 0 | 0 | 0 | 0 | 0
12 | Fossil gas activities | 10,924 | 182 | 3 | 0 | 0 | 0 | 0 | 0 | 0
13 | Of which non-assessed exposures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

72
2.3 GAR sector information, CapEx-based view, stock

| a | b | c | d | e | f | g | h | i | j
| Breakdown by sector - NACE 4 digits level (code and label) 31 December 2025 in EUR million | Total [Gross] carrying amount | Of which Taxonomy eligible | Of which Taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Eco- systems (BIO)
1 | K64.19 Other monetary intermediation | 12,834 | 2,253 | 224 | 223 | 1 | 0 | 0 | 0 | 0
2 | O84.11 General public administration activities | 7,373 | 3,370 | 0 | 0 | 0 | 0 | 0 | 0 | 0
3 | L68.20 Renting and operating of own or leased real estate | 4,727 | 2,340 | 83 | 81 | 3 | 0 | 0 | 0 | 0
4 | D35.11 Production of electricity from non-renewable sources | 1,112 | 537 | 435 | 434 | 0 | 0 | 0 | 0 | 0
5 | T98.20 Undifferentiated service-producing activities of private households for own use | 987 | 194 | 0 | 0 | 0 | 0 | 0 | 0 | 0
6 | I55.10 Hotels and similar accommodation | 817 | 231 | 0 | 0 | 0 | 0 | 0 | 0 | 0
7 | Q86.22 Specialist medical practice activities | 763 | 357 | 9 | 9 | 0 | 0 | 0 | 0 | 0
8 | N77.11 Renting and leasing of motor vehicles | 736 | 483 | 56 | 56 | 0 | 0 | 0 | 0 | 0
9 | A01.50 Growing of tobacco | 728 | 55 | 0 | 0 | 0 | 0 | 0 | 0 | 0
10 | C29.32 Manufacture of other parts and accessories for motor vehicles | 591 | 222 | 71 | 71 | 0 | 0 | 0 | 0 | 0
11 | Nuclear activities | 29,463 | 108 | 107 | 0 | 0 | 0 | 0 | 0 | 0
12 | Fossil gas activities | 29,463 | 345 | 51 | 0 | 0 | 0 | 0 | 0 | 0
13 | Of which non-assessed exposures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

73
2.4 GAR sector information, CapEx-based view, flow

| a | b | c | d | e | f | g | h | i | j
| Breakdown by sector - NACE 4 digits level (code and label) Financial year 2025 in EUR million | Total [Gross] carrying amount | Of which Taxonomy eligible | Of which Taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Eco- systems (BIO)
1 | K64.19 Other monetary intermediation | 4,926 | 829 | 83 | 82 | 0 | 0 | 0 | 0 | 0
2 | O84.11 General public administration activities | 1,514 | 403 | 0 | 0 | 0 | 0 | 0 | 0 | 0
3 | L68.20 Renting and operating of own or leased real estate | 534 | 248 | 1 | 1 | 0 | 0 | 0 | 0 | 0
4 | D35.11 Production of electricity | 445 | 142 | 117 | 117 | 0 | 0 | 0 | 0 | 0
5 | N77.11 Renting and leasing of cars and light motor vehicles | 433 | 350 | 33 | 33 | 0 | 0 | 0 | 0 | 0
6 | M70.10 Activities of head offices | 278 | 53 | 3 | 3 | 0 | 0 | 0 | 0 | 0
7 | G47.11 Retail sale in non-specialised stores with food, beverages or tobacco predominating | 242 | 79 | 6 | 5 | 0 | 0 | 1 | 0 | 0
8 | J61.10 Wired telecommunications activities | 239 | 56 | 0 | 0 | 0 | 0 | 0 | 0 | 0
9 | C29.10 Manufacture of motor vehicles | 228 | 199 | 45 | 45 | 0 | 0 | 0 | 0 | 0
10 | Q86.22 Specialist medical practice activities | 206 | 46 | 3 | 3 | 0 | 0 | 0 | 0 | 0
11 | Nuclear activities | 10,924 | 73 | 73 | 0 | 0 | 0 | 0 | 0 | 0
12 | Fossil gas activities | 10,924 | 177 | 40 | 0 | 0 | 0 | 0 | 0 | 0
13 | Of which non-assessed exposures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

74
3.1 GAR KPI stock, turnover-based view

% (compared to corresponding total covered assets in the denominator) 31 December 2025 | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxon- omy- eligible |  |  |  |  |  |  |  |  |  |  | Propor- tion of Taxonomy aligned in Taxonomy eligible | Non- assessed exposures
Taxon- omy- aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transi- tional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiver- sity and Eco- systems (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 75.64% | 2.52% | 2.50% | 0.01% | 0.00% | 0.01% | 0.00% | 0.00% | 1.19% | 0.19% | 0.63% | 3.34% | 0.00%
3 | Financial undertakings | 20.22% | 2.21% | 2.12% | 0.05% | 0.00% | 0.04% | 0.00% | 0.00% | 0.00% | 0.24% | 0.72% | 10.93% | 0.00%
4 | Loans and advances | 16.20% | 1.86% | 1.76% | 0.09% | 0.00% | 0.01% | 0.00% | 0.00% | 0.00% | 0.28% | 0.77% | 11.47% | 0.00%
5 | Debt securities, including UoP | 24.67% | 2.58% | 2.50% | 0.00% | 0.00% | 0.07% | 0.00% | 0.00% | 0.00% | 0.20% | 0.69% | 10.45% | 0.00%
6 | Equity instruments | 18.74% | 2.70% | 2.70% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.09% | 0.03% | 14.39% | 0.00%
7 | Non-financial undertakings | 31.26% | 8.06% | 7.99% | 0.03% | 0.01% | 0.02% | 0.02% | 0.00% | 1.01% | 1.04% | 3.61% | 25.78% | 0.00%
8 | Loans and advances | 31.03% | 7.95% | 7.88% | 0.03% | 0.01% | 0.02% | 0.02% | 0.00% | 1.13% | 1.03% | 3.61% | 25.63% | 0.00%
9 | Debt securities, including UoP | 34.36% | 10.49% | 10.43% | 0.00% | 0.01% | 0.03% | 0.01% | 0.00% | 0.00% | 1.41% | 4.27% | 30.52% | 0.00%
10 | Equity instruments | 28.72% | 2.34% | 2.30% | 0.00% | 0.01% | 0.01% | 0.02% | 0.00% | — | 0.00% | 0.89% | 8.15% | 0.00%
11 | Households | 94.93% | 1.50% | 1.50% | 0.00% | — | 0.00% | — | — | 1.50% | 0.00% | 0.00% | 1.58% | 0.00%
12 | of which loans collateralised by residential immovable property | 94.96% | 1.57% | 1.57% | 0.00% | — | 0.00% | — | — | 1.57% | 0.00% | 0.00% | 1.66% | 0.00%
13 | of which building renovation loans | 100.00% | 0.11% | 0.11% | 0.00% | — | 0.00% | — | — | 0.11% | 0.00% | 0.00% | 0.11% | 0.00%
14 | of which motor vehicle loans | 6.38% | 0.00% | 0.00% | — | — | — | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
15 | Local governments financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
16 | Housing financing | 100.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
17 | Other local government financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 71.35% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
19 | Exposures included on a voluntary basis | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | —
20 | GAR - Total GAR assets | 75.64% | 2.52% | 2.50% | 0.01% | 0.00% | 0.01% | 0.00% | 0.00% | 1.19% | 0.19% | 0.63% | 3.34% | 0.00%

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3.2 GAR KPI stock, CapEx-based view

% (compared to corresponding total covered assets in the denominator) 31 December 2025 | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxon- omy- eligible |  |  |  |  |  |  |  |  |  |  | Propor- tion of Taxonomy aligned in Taxonomy eligible | Non- assessed exposures
Taxon- omy- aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transi- tional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiver- sity and Eco- systems (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 76.93% | 2.94% | 2.92% | 0.01% | 0.00% | 0.01% | 0.00% | 0.00% | 1.19% | 0.16% | 0.92% | 3.82% | 0.00%
3 | Financial undertakings | 22.13% | 2.75% | 2.71% | 0.02% | 0.00% | 0.02% | 0.00% | 0.00% | 0.00% | 0.22% | 1.06% | 12.42% | 0.00%
4 | Loans and advances | 19.89% | 2.42% | 2.38% | 0.03% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.27% | 1.18% | 12.14% | 0.00%
5 | Debt securities, including UoP | 24.67% | 3.10% | 3.06% | 0.01% | 0.00% | 0.03% | 0.00% | 0.00% | 0.00% | 0.18% | 0.97% | 12.58% | 0.00%
6 | Equity instruments | 19.29% | 3.08% | 3.08% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.09% | 0.08% | 15.97% | 0.00%
7 | Non-financial undertakings | 38.28% | 10.40% | 10.27% | 0.03% | 0.00% | 0.07% | 0.02% | 0.00% | 1.01% | 0.91% | 5.27% | 27.15% | 0.00%
8 | Loans and advances | 37.62% | 10.19% | 10.08% | 0.03% | 0.00% | 0.07% | 0.02% | 0.00% | 1.13% | 0.82% | 5.01% | 27.09% | 0.00%
9 | Debt securities, including UoP | 47.48% | 13.66% | 13.45% | 0.08% | 0.00% | 0.12% | 0.01% | 0.00% | 0.00% | 2.11% | 8.37% | 28.77% | 0.00%
10 | Equity instruments | 29.63% | 5.74% | 5.72% | 0.00% | 0.00% | 0.01% | 0.01% | 0.00% | — | 0.22% | 4.09% | 19.37% | 0.00%
11 | Households | 94.93% | 1.50% | 1.50% | 0.00% | — | 0.00% | — | — | 1.50% | 0.00% | 0.00% | 1.58% | 0.00%
12 | of which loans collateralised by residential immovable property | 94.96% | 1.57% | 1.57% | 0.00% | — | 0.00% | — | — | 1.57% | 0.00% | 0.00% | 1.66% | 0.00%
13 | of which building renovation loans | 100.00% | 0.11% | 0.11% | 0.00% | — | 0.00% | — | — | 0.11% | 0.00% | 0.00% | 0.11% | 0.00%
14 | of which motor vehicle loans | 6.38% | 0.00% | 0.00% | — | — | — | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
15 | Local governments financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
16 | Housing financing | 100.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
17 | Other local government financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 71.35% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
19 | Exposures included on a voluntary basis | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | —
20 | GAR - Total GAR assets | 76.93% | 2.94% | 2.92% | 0.01% | 0.00% | 0.01% | 0.00% | 0.00% | 1.19% | 0.16% | 0.92% | 3.82% | 0.00%

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4.1 GAR KPI flow, turnover-based view

% (compared to corresponding total covered assets in the denominator) Financial year 2025 | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxon- omy- eligible |  |  |  |  |  |  |  |  |  |  | Propor- tion of Taxonomy aligned in Taxonomy eligible | Non- assessed exposures
Taxon- omy- aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transi- tional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiver- sity and Eco- systems (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 58.01% | 3.10% | 3.05% | 0.00% | 0.00% | 0.03% | 0.01% | 0.00% | 0.62% | 0.55% | 1.02% | 5.35% | 0.00%
3 | Financial undertakings | 19.64% | 2.31% | 2.22% | 0.01% | 0.00% | 0.09% | 0.00% | 0.00% | 0.00% | 0.13% | 1.01% | 11.77% | 0.00%
4 | Loans and advances | 13.97% | 1.66% | 1.65% | 0.00% | 0.00% | 0.01% | 0.00% | 0.00% | 0.00% | 0.11% | 0.80% | 11.87% | 0.00%
5 | Debt securities, including UoP | 31.33% | 3.66% | 3.39% | 0.01% | 0.00% | 0.26% | 0.00% | 0.00% | 0.00% | 0.16% | 1.45% | 11.68% | 0.00%
6 | Equity instruments | 14.27% | 1.10% | 1.10% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.01% | 0.00% | 7.72% | 0.00%
7 | Non-financial undertakings | 23.54% | 8.10% | 7.99% | 0.01% | 0.01% | 0.04% | 0.04% | 0.00% | 0.00% | 2.24% | 3.25% | 34.39% | 0.00%
8 | Loans and advances | 23.21% | 8.28% | 8.17% | 0.01% | 0.01% | 0.04% | 0.04% | 0.00% | 0.00% | 2.23% | 3.39% | 35.66% | 0.00%
9 | Debt securities, including UoP | 34.02% | 8.70% | 8.56% | 0.00% | 0.01% | 0.07% | 0.05% | 0.00% | 0.00% | 3.95% | 1.73% | 25.56% | 0.00%
10 | Equity instruments | 19.86% | 0.44% | 0.44% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | 0.03% | 2.22% | 0.00%
11 | Households | 93.81% | 1.28% | 1.28% | 0.00% | — | 0.00% | — | — | 1.28% | 0.00% | 0.00% | 1.37% | 0.00%
12 | of which loans collateralised by residential immovable property | 94.41% | 1.36% | 1.36% | 0.00% | — | 0.00% | — | — | 1.36% | 0.00% | 0.00% | 1.44% | 0.00%
13 | of which building renovation loans | 100.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
14 | of which motor vehicle loans | 9.83% | 0.00% | 0.00% | — | — | — | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
15 | Local governments financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
16 | Housing financing | 100.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
17 | Other local government financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 100.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
19 | Exposures included on a voluntary basis | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | —
20 | GAR - Total GAR assets | 58.01% | 3.10% | 3.05% | 0.00% | 0.00% | 0.03% | 0.01% | 0.00% | 0.62% | 0.55% | 1.02% | 5.35% | 0.00%

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4.2 GAR KPI flow, CapEx-based view

% (compared to corresponding total covered assets in the denominator) Financial year 2025 | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxon- omy- eligible |  |  |  |  |  |  |  |  |  |  | Propor- tion of Taxonomy aligned in Taxonomy eligible | Non- assessed exposures
Taxon- omy- aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transi- tional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiver- sity and Eco- systems (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 61.09% | 3.55% | 3.50% | 0.01% | 0.00% | 0.02% | 0.01% | 0.00% | 0.62% | 0.34% | 1.36% | 5.81% | 0.00%
3 | Financial undertakings | 24.13% | 3.14% | 3.09% | 0.00% | 0.00% | 0.04% | 0.00% | 0.00% | 0.00% | 0.14% | 1.48% | 13.01% | 0.00%
4 | Loans and advances | 20.23% | 2.42% | 2.41% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.13% | 1.33% | 11.94% | 0.00%
5 | Debt securities, including UoP | 32.18% | 4.63% | 4.51% | 0.01% | 0.00% | 0.12% | 0.00% | 0.00% | 0.00% | 0.15% | 1.81% | 14.40% | 0.00%
6 | Equity instruments | 14.41% | 1.23% | 1.23% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | 0.01% | 8.55% | 0.00%
7 | Non-financial undertakings | 31.74% | 9.07% | 8.93% | 0.06% | 0.00% | 0.05% | 0.04% | 0.00% | 0.00% | 1.34% | 4.21% | 28.60% | 0.00%
8 | Loans and advances | 31.30% | 9.21% | 9.06% | 0.06% | 0.00% | 0.05% | 0.04% | 0.00% | 0.00% | 1.35% | 4.19% | 29.44% | 0.00%
9 | Debt securities, including UoP | 49.72% | 11.16% | 11.06% | 0.00% | 0.02% | 0.05% | 0.03% | 0.00% | 0.00% | 1.96% | 7.27% | 22.44% | 0.00%
10 | Equity instruments | 20.63% | 0.75% | 0.75% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | 0.08% | 3.61% | 0.00%
11 | Households | 93.81% | 1.28% | 1.28% | 0.00% | — | 0.00% | — | — | 1.28% | 0.00% | 0.00% | 1.37% | 0.00%
12 | of which loans collateralised by residential immovable property | 94.41% | 1.36% | 1.36% | 0.00% | — | 0.00% | — | — | 1.36% | 0.00% | 0.00% | 1.44% | 0.00%
13 | of which building renovation loans | 100.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
14 | of which motor vehicle loans | 9.83% | 0.00% | 0.00% | — | — | — | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
15 | Local governments financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
16 | Housing financing | 100.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
17 | Other local government financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 100.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
19 | Exposures included on a voluntary basis | 0.00% | 0.00% | 0.00% | 0.00% | — | 0.00% | — | — | 0.00% | 0.00% | 0.00% | 0.00% | —
20 | GAR - Total GAR assets | 61.09% | 3.55% | 3.50% | 0.01% | 0.00% | 0.02% | 0.01% | 0.00% | 0.62% | 0.34% | 1.36% | 5.81% | 0.00%

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5.1 KPI off-balance sheet exposures turnover-based view, stock

% (compared to corresponding total off-balance sheet assets) 31 December 2025 | a | b | c | d | e | f | g | h | i | j | k | l
Taxonomy eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Eco- systems (BIO)
1 | Financial guarantees (FinGuar KPI) | 38.49% | 13.33% | 12.55% | 0.01% | 0.01% | 0.73% | 0.03% | 0.00% | 0.00% | 0.08% | 11.01% | 0.00%
2 | Assets under management (AuM KPI) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%

5.2 KPI off-balance sheet exposures turnover-based view, flow

% (compared to corresponding total off-balance sheet assets) Financial year 2025 | a | b | c | d | e | f | g | h | i | j | k | l
Taxonomy eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Eco- systems (BIO)
1 | Financial guarantees (FinGuar KPI) | 34.91% | 12.05% | 10.50% | 0.01% | 0.01% | 1.48% | 0.04% | 0.00% | 0.00% | 0.05% | 10.02% | 0.00%
2 | Assets under management (AuM KPI) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%

5.3 KPI off-balance sheet exposures CapEx-based view, stock

% (compared to corresponding total off-balance sheet assets) 31 December 2025 | a | b | c | d | e | f | g | h | i | j | k | l
Taxonomy eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Eco- systems (BIO)
1 | Financial guarantees (FinGuar KPI) | 42.83% | 15.66% | 15.30% | 0.02% | 0.00% | 0.34% | 0.00% | 0.00% | 0.00% | 0.52% | 10.40% | 0.00%
2 | Assets under management (AuM KPI) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%

79
5.4 KPI off-balance sheet exposures CapEx-based view, flow

% (compared to corresponding total off-balance sheet assets) Financial year 2025 | a | b | c | d | e | f | g | h | i | j | k | l
Taxonomy eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objective | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Eco- systems (BIO)
1 | Financial guarantees (FinGuar KPI) | 38.15% | 12.86% | 12.16% | 0.02% | 0.00% | 0.68% | 0.00% | 0.00% | 0.00% | 0.39% | 6.75% | 0.00%
2 | Assets under management (AuM KPI) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%

80
Climate change
Erste Group addresses climate change within its sustainability strategy, recognizing that transitioning to net zero is crucial for long-
term wellbeing, financial stability and overall prosperity. Achieving the transition to a low-carbon economy requires coordinated
efforts across the financial system and the broader economy. The Group has the ambition to achieve a net zero status of its portfolio
by 2050.
Erste Group’s double materiality analysis (DMA) identifies climate change as a key issue affecting its business and stakeholders. As
a leading provider of financial services, Erste Group aims to address the impact of its own operations and its financing and
investment activities on climate change.
E1 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL
Material impacts, risks and opportunities (IROs)

Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
E1-Climate change adaptation | Risk | Erste Group faces a higher credit risk as climate-related physical risks can lead to a devaluation of collateral and/or to negative effects on the business models and lastly financial stability of debtors. The consequences are increased risk provisions for Erste Group and connected negative impacts to its P&L and own funds. | Portfolio | Medium- to long-term
Opportunity | For Erste Group, additional financial opportunities arise from the financing of and investments into companies that offer solutions for adapting to climate change and the funding of adaptation solutions in the real estate market (residential and commercial real estate). | Portfolio | All time horizons
E1-Climate change mitigation | Risk | Erste Group faces a higher credit risk as climate-related transition events (e.g. carbon pricing and regulatory interventions) can lead to negative effects on the profitability of business models and the financial stability of debtors. The consequences are increased risk provisions for Erste Group and connected negative impacts to its P&L and own funds. | Portfolio | All time horizons
E1-Energy | Positive impact | By financing renewable energy and energy grid infrastructure, Erste Group promotes CO 2 e-neutral power and supports energy security as well as the transition to a sustainable economy. | Portfolio | All time horizons
Risk | Price instability on the energy market due to climate change can result in decreased profitability in companies in energy-intensive sectors as well as liquidity shortage of retail clients, leading to a higher default risk and a related increase in risk provisions for Erste Group, impacting P&L as well as own funds. | Portfolio | All time horizons
E1-Climate change mitigation and energy | Negative impact | Erste Group’s Scope 1, 2 and 3 CO 2 e emissions (from upstream value chain, own operations and financed emissions) contribute to climate change and thus to global warming. | Upstream, Own operations, Portfolio | All time horizons
Opportunity | Erste Group can gain financial opportunities by investing in and financing clients that support decarbonization, transition to sustainability and renewable energy projects (e.g., pumped storage plants, green hydrogen) that support CO 2 e- neutral energy production. | Portfolio | All time horizons

Climate Change Adaptation
Erste Group is confronted with an elevated credit risk due to climate-related physical risks, which can lead to a devaluation of
collateral and subsequently affect the business model and financial stability of debtors. According to Erste Group’s physical climate
risk analysis, these risks are a material driver for credit risk (short-, medium- and long-term), operational risk (medium- and long-
term) as well as strategic risk (long-term). The pronounced credit risk exposure is largely driven by climate-related hazards,
particularly flood risk, which is identified as key physical risk driver for Erste Group having material impact. Established scientific
expectations estimate physical risks - particularly climate-related hazards - to substantially intensify from the mid-century onwards,
impacting the portfolio, strategic position as well as Erste Group’s own operations. The consequences are increased risk provisions
for Erste Group and connected negative impacts to its P&L and own funds.
Additional financial opportunities arise from both the financing of and investments in companies that develop and provide
solutions for climate change adaptation, as well as the funding of adaptation measures in the real estate sector, including both
residential and commercial properties. For companies, this can include technologies and services such as climate-resilient
infrastructure, advanced water management systems, heat-resistant materials, flood protection technologies and early warning or
risk assessment tools. In the real estate sector, adaptation solutions may involve retrofitting buildings for improved energy
efficiency and thermal resilience, installing green roofs and walls, implementing flood-proof construction methods, enhancing
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natural ventilation systems and integrating on-site water retention and drainage systems to mitigate the effects of extreme weather
events.
Climate Change Mitigation
Erste Group faces elevated credit risk from climate-related transition risks, such as regulatory interventions, which can adversely
affect the profitability and financial stability of debtors. As a result, Erste Group may be required to increase risk provisions, leading
to negative impacts on its profit and loss statement as well as its own funds. The climate risk analysis indicates that, in a disorderly
transition to a low-carbon economy, transition risks could significantly affect credit risk exposure across in the short- and medium-
term. This is mainly driven by environmental taxation, regulatory changes and shifts in market behaviour of investors, consumers,
suppliers and employees. In the long term, the impact is immaterial for credit risk as the initially recorded shocks - marked by steep
carbon price hikes, rapid technology changes and stranded assets - have already mostly been absorbed. Over time, markets and
firms adapt to the new policy environment, reducing transition-related volatility. The delayed transition scenario illustrates that
delaying action amplifies disruption in the short- and medium-term but eventually stabilizes in the long run.
Energy
By financing renewable energy and energy grid infrastructure, Erste Group promotes CO₂e-neutral power and supports both
energy security and the transition to a sustainable economy. This includes investments in wind and solar, hydroelectric and
geothermal power plants, green hydrogen production facilities, as well as the expansion and modernisation of electricity grids,
smart grid technologies, battery storage systems and cross-border interconnectors to enhance grid stability and flexibility.
Volatility in energy markets, exacerbated by climate change and related physical or transition events, can negatively affect the
profitability of companies, particularly those operating in energy-intensive sectors, by increasing operational costs and reducing
margins. At the same time, rising and unstable energy prices may lead to liquidity constraints for retail clients, impairing their
repayment capacity. These developments contribute to a higher probability of default across portfolios, requiring increased risk
provisions from Erste Group and potentially resulting in adverse impacts on both the profit and loss statement and own funds.
Climate Change Mitigation and Energy
Some of the identified impacts, risks and opportunities pertain to both the Climate Change Mitigation and Energy subtopics.
Accordingly, the combined subcategory ‘Climate Change Mitigation and Energy’ comprises IROs that apply to both areas.
The CO₂e emissions from Erste Group’s own operations, its upstream value chain and through the financed portfolio contribute to
climate change and, consequently, to global warming. In its own operations, key emission hotspots include energy consumption in
office buildings, heating and cooling systems, employee commuting and business travel. In the upstream value chain, significant
sources involve emissions from purchased goods and services, such as IT infrastructure, data centres and external service providers.
Erste Group can unlock financial opportunities by investing in and financing of clients that drive decarbonization, advance the
transition to a sustainable economy and develop renewable energy projects. This may include financing solutions such as the
electrification of industrial processes, the implementation of energy efficiency measures, the shift to low-emission machinery,
development of circular economy business models and the integration of on-site renewable energy systems like solar or wind
power, pumped storage plants and hydrogen.
RESILIENCE OF THE BUSINESS MODEL
Erste Group has implemented a comprehen sive scenario-based approach to assess and quantify transition and physical risks in the
short-, medium and long-term on own operations, client relationships and the asset portfolio. The systematic analysis of potential
future scenarios enables the identification of opportunities for enhanced resilience and adaptation.
Scenario Analysis Framework
Erste Group’s analytical framework incorporates scenarios informed by the Network for Greening the Financial System (NGFS) to
explore the impact of transition and physical risks. The results enable Erste Group to assess its short‑ to medium‑term financial
resilience, while also evaluating the adaptability and long‑term robustness of its business model amid increasing uncertainties in
the business environment. The selected scenarios encompass three distinct pathways:

Typ | Name | Description
Baseline | Central Scenario | reflects Erste Group’s baseline view on the expected development of its environment by combining NGFS’ Below 2°C and Fragmented world
Adverse | Delayed Transition | assumes that the implementation of strong climate policies is stalled until 2030 ultimately leading to high transition risk implications
Current Policies | assumes that existing climate policies remain in place but there is no ambition to further strengthen them leading to increasing physical risks (Hot House World)

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The evaluation of transition and physical risks is based on the results from the two respective adverse scenarios, Delayed Transition
scenario for transition risk and the Current Policies scenario for physical risk. The delayed transition scenario examines the
implications of a rapid, disorderly transition to a low-carbon economy, characterised by sudden policy changes in 2030 triggering
market disruptions as countries rush to meet the Paris Agreement target of limiting global warming to well below 2°C. For Erste
Group’s usage it is considered ‘accelerated’, implying that the disorderly transition starts already in the next year rather than in the
2030s allowing for a consistent assessment of the short- (2026) and medium-term (2030) respectively. Meanwhile, the Hot House
World scenario reflects a future with minimal climate change mitigation, resulting in severe physical impacts such as extreme
weather events (e.g. floods, fires). By choosing these scenarios, Erste Group ensures it is testing its portfolio under adverse
conditions, thereby strengthening its resilience and enhancing risk awareness for a robust climate risk management.
It should be noted, that the resilience analysis is subject to uncertainties as it uses long‑term (up to 30 years) climate and
macro‑economic projections that depend on assumptions about future policies, technologies and how quickly the transition will
progress. Uncertainty also comes from the limited historical data for extreme climate events and from the sensitivity of the risk
models, which means actual impacts may differ from the estimates.
Scope of the resilience analysis
The analysis of transition risks covers clients including sovereigns, financial institutions, large corporates, SMEs and real estate
(commercial real estate including income producing residential real estate and retail mortgages) and Erste Group’s own operations.
The analysis of physical risks covers loans collateralised by real estate (commercial real estate including income producing
residential real estate and retail mortgages) and Erste Group’s own and outsourced operations (i.e. headquarters and branches incl.
critical facilities like data centres).
The assessment of both risks is conducted over the short-, medium- and long-term horizons. The time horizons used for the
physical and transition risk assessments are as follows:
_ short-term: up to 1 year,
_ medium-term: 1 to 5 years and
_ long-term: more than 5 years (for transition risk up to 2050, for physical risks up to 2100).
Description of the resilience analysis
The methodology for the transition risk assessment focuses on the impact of increasing (shadow) carbon prices on the financial
position of counterparties. This (shadow) carbon price encompasses a multitude of risk drivers related to transition risk and is
therefore a prudent way to quantify the risk impact. The modelling reflects the direct impact of a higher carbon price on
counterparties as well as the indirect effects of macroeconomic developments. The macroeconomic parameters were derived from
the regulatory scenarios as well as the economic research department of Erste Group and cover each critical sector individually in a
projection of the gross value added. The developments are based on each scenario’s narrative tailored to the current economic
starting points of key markets. Critical assumptions on developments are therefore aligned to regulatory as well as scientific
scenarios.
The physical risk assessment combines quantitative analyses which simulate extreme weather events like floods or fires to
evaluate portfolio resilience under adverse conditions:
_ Comprehensive scenario analysis: As with the transition risk scenario analysis, the basis was represented by a NGFS scenario,
namely Current Policies. Additionally, two dedicated physical risk models were designed to simulate the direct effects of two key
climate-related hazards, namely riverflood and fire weather. The impact unfolds on the credit portfolio collateralized by real
estate (i.e. RRE, CRE) via LGD shifts.
_ Munich RE hazard data: The Location Risk Intelligence data on physical risks from Munich RE provides an extensive list of
hazards and climate-related variables like various time horizons as well as scenarios. Erste Group bases its risk materiality
assessment of future time frames on the RCP 8.5 and SSP 5 scenario respectively, capturing physical risk exposures under adverse
conditions reflected by high-emission and fossil-fueled trajectories. Applying this severe downside scenario guarantees a highly
conservative approach in evaluating Erste Group’s resilience to climate-related risks.
Results of the resilience analysis
The outcomes of the assessment performed in the third quarter of 2025 to evaluate anticipated risk exposure under adverse
scenarios are as follows.
Transition Risk
Credit Risk: The analysis conducted by Erste Group indicates notable exposure to transition-induced credit risk across short- and
medium-term in case the transition to low-carbon economy occurs in adverse fashion (delayed transition). This adverse scenario
and its impact do not reflect Erste Group’s current baseline expectations on the development of its environment but serve as
exploratory analysis to assess the exposure to transition risk in the adverse stress scenario. Under the baseline or orderly transition
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scenario, the direct impact of the transition risk drivers on Erste Group is significantly smaller and limited. This elevated credit risk
exposure is mainly driven by climate-related factors and drivers such as environmental taxation and subsidies, regulatory
requirements, energy and transport policies, behavioural changes of investors, consumers, suppliers and employees as well as
technological developments. In the long-term, capital position is expected to improve and the risk becomes immaterial as markets
and firms adapt to the new policy environment, reducing transition-related volatility.
From an operational risk perspective, two of the most relevant transition risk drivers have been identified in the medium- and long-
term horizon. First, there is an increased risk of regulatory non-compliance due to rapidly evolving requirements and heightened
regulatory oversight. Second, shifting behaviours and expectations of stakeholders regarding environmental performance create
additional operational challenges that require careful management.
Market, Liquidity, Strategic and Reputational Risk: The evaluation concluded that no material transition risks were identified
across all time horizons – short-, medium- and long-term.
To evaluate the business model resilience, it is essential to assess the effectiveness of Erste Group’s strategic responses and
mitigation actions to determine the net impact. This process involves comparing the financial impact of the transition risk scenario
with and without mitigating actions, especially considering the implemented decarbonization strategy. The 2025 Climate &
Environmental Scenario Analysis, showed that under the short- and medium-term adverse scenarios, the largest impact stems from
a disorderly transition but it resulted in no breach of regulatory thresholds showing that the bank is well positioned to withstand
such adverse shocks. While long‑term projections indicate a higher concentration of losses within carbon‑intensive sectors (such as
Natural Resources and Commodities), Erste Group’s capital position remains resilient throughout the assessment horizon.
Erste Group has the ambition to achieve a net zero status of its portfolio by 2050. By following the strategy towards established
targets for key sectors, Erste Group’s exposure to climate-related transition risks is expected to decline. The decarbonization effect
becomes particularly evident in the medium term, as it significantly reduces the gross impact of the adverse scenario to an
immaterial level (especially in segments related to real estate), thereby underlining its strong contribution to Erste Group’s
resilience towards transition risks. Further information on the established decarbonization pathways can be found in chapter E1-4.
Against the backdrop of having a resilient capital position and a comprehensive ESG Risk Management Framework, Erste Group
maintains the ability to adapt its strategy and business model to climate‑related developments across all time horizons if deemed
necessary. In the short term, the Group’s robust capital position and stable funding structure fundamentally support ongoing access
to finance at an affordable cost of capital. In the medium and long-term, the Group can redeploy its credit portfolio by supporting
clients to more sustainable business models and operations. This is supported by an established decarbonization strategy as well as
a dedicated client‑engagement framework consisting of several tools like ESG Assessment Questionnaire, Responsible Financing
Policy and Sustainable Finance Methodology. Besides that, the Group supports also internal workforce adaptability through
continuous reskilling initiatives and comprehensive ESG‑related training programmes. These strategic adjustment levers ensure
that the Group can realign its business model as climate‑related risks and opportunities continue to evolve arising from the ongoing
transition of the real economy.
Other components of the risk management framework that allow to effectively manage and reduce exposure to transition risks
include various mitigation tools, such as enhancing the existing limit framework, strengthening underwriting standards, improving
monitoring processes and expanding ESG-related data collection.
Besides the conducted materiality assessment of transition risk, the forward-looking best-estimate Weighted Average Carbon
Intensity (WACI) offers insights into Erste Group’s exposure to transition risks across different climate scenarios. Scenario
pathways range from steep decline under ‘Net Zero 2050’ to minimal reductions under ‘Current Policies’, emphasising the potential
financial impact of delayed action. For business loans, project finance and corporate bonds (EUR 77 billion as of December 2025),
the scope 1 and 2 WACI amounts to 220 tCO 2 e per EUR million turnover in 2025, down from 252 tCO 2 e per EUR million turnover
in 2024. Scope 3 emissions are excluded due to inherent forecast uncertainties. As noted in ‘Scope 3 Category 13 and 15 Financed
emissions’, the actual 2024 WACI was recalculated due to a significant portfolio shift between business loans and real estate
exposures, as well as methodological improvements in the allocation of WACI between scope 1,2 and scope 3 emissions. The
recalculated forward-looking best-estimate 2025 WACI amounts to 252 tCO 2 e per EUR million turnover, placing the actual 2025
value below this estimate and consistent with declining Scope 1 and 2 financed emissions and intensity.
The following table expresses yearly scope 1 and 2 emissions of debtors in the business loan, project finance and corporate bond
portfolios, expressed as a ratio of turnover generated by Erste Group with these clients. These amounts vary in the short-, medium-
and long-term in accordance with the climate scenarios and adaptation efforts.
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Forward-looking best-estimate WACI (scope 1 and 2)

WACI scope 1 & 2 in tCO 2 e per EUR million turnover | 2026 (short-term) | 2030 (medium-term) | 2050 (long-term)
Net Zero 2050 | 204 | 141 | 19
Below 2°C | 211 | 175 | 37
Delayed transition | 218 | 213 | 26
Current policies | 217 | 209 | 203

Physical Risk
Credit Risk: According to Erste Group’s assessment, physical risks are a material driver for credit risk across all time horizons. This
elevated credit risk exposure is mainly driven by climate-related physical risk hazards. In line with scientific projections those are
expected to intensify in severity and frequency from the mid-century onwards with a higher impact expected on the real estate
sector. Given the severity of the applied stress scenario (Current Policies), it is noteworthy that Erste Group’s capital position
remains at highly robust levels even over the long‑term horizon. This demonstrates that the business model is well positioned to
absorb and adapt to adverse environmental developments.
Operational Risk: For internal operations, Erste Group identifies physical risks as a material driver in the medium- and long-term
time horizons, primarily due to potential river floods and related changing rainfall patterns affecting facilities in certain areas.
Looking ahead to 2100, heat waves are expected to reach material level across all geographies, both for own operation and third-
party service providers.
Strategic Risk: Erste Group assesses the impact of physical risk drivers as material on the strategic risk in the long-term (2100)
coming mainly from the elevated climate-related physical risk hazards on its credit portfolio.
Market, Liquidity and Reputational Risk: The evaluation concluded that no material physical risks were identified across all time
horizons – short-, medium- and long-term.
E1-1 – TRANSITION PLAN
Erste Group has the ambition to achieve a net zero status of its portfolio by 2050. Erste Group’s net zero 2050 ambition is closely
interlinked with regulatory developments at both EU and national levels and will be accompanied by actions that reflect these
evolving frameworks, methodologies and targets. As the EU further defines its commitments, the Group will progressively align its
approach to support and follow these developments.
In 2024, Erste Group has developed elements of a transition plan guided by GFANZ. Building on these elements, Erste Group has
been developing its prudential transition plan in 2025 in line with the requirements under the Capital Requirements Directive
(CRD VI). Due to different legal requirements and timing there is currently no intention to develop an overall transition plan fully
aligned with a 1.5‑degree pathway. Erste Group’s transition plan under the Capital Requirements Directive focuses on assessing
and managing financial risks arising from nature and climate risks, providing strategic direction, including decarbonisation targets
and implementation measures to support proper risk decisions. Work on this integration began in 2025 and Erste Group continues
to strengthen the alignment between its sustainability strategy and prudential risk management, ensuring consistency across
regulatory frameworks and internal planning processes.
As part of its ambition to support the transition to a sustainable economy, Erste Group aims to support clients and sectors towards
decarbonisation, while also reducing emissions from its own operations. This is fully integrated into Erste Group’s overall business
strategy and financial planning, ensuring that decarbonisation efforts are part of decision-making processes. Erste Group
emphasises continuous engagement with clients across various industries to support their transition and manage climate-related
risks. Erste Group integrates emission reduction targets into its business strategy to support both the clients’ transition and the
bank’s sustainability goals. Furthermore, Erste Group monitors portfolio developments and client progress quarterly. This process
includes assessing the impact of client engagements, adjusting strategies and implementing necessary measures. Progress is
reported regularly to the Management Board and Supervisory Board.
More information on the respective policies, actions and targets can be found in the corresponding chapter E1-2, E1-3 and E1-4.
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E1-2 – POLICIES AND TRANSITION MEASURES FOR CLIMATE CHANGE MITIGATION
AND ADAPTATION
Erste Group’s policies to transition to a sustainable economy focus on targets for investment and financing activities, which are
endorsed and supported by the management of all subsidiaries.
AT A GLANCE: ADDRESSING IMPACTS, RISKS AND OPPORTUNITIES

Impacts, risks and opportunities | Strategy / Policy | Key decarbonization lever and actions | Targets
By financing renewable energy and energy grid infrastructure, Erste Group promotes CO 2 e-neutral power and supports energy security as well as the transition to a sustainable economy. (Positive Impact Energy) Erste Group can gain financial opportunities by investing in and financing clients that support decarbonization, transition to sustainability and renewable energy projects (e.g., pumped storage plants, green hydrogen) that support CO 2 e-neutral energy production. (Opportunity Climate Mitigation and Energy) | Sustainable Finance Methodology | Lever Promoting a sustainable real estate sector Lever Emission reduction in the energy sector Lever: Client engagement | 15% sustainable retail mortgages by 2027 25% sustainable corporate financing by 2026
Erste Group faces a higher credit risk as climate-related physical risks can lead to a devaluation of collateral and/or to negative effects on the business models and lastly financial stability of debtors. The consequences are increased risk provisions for Erste Group and connected negative impacts to its P&L and own funds. (Risk Climate Change Adaptation) For Erste Group, additional financial opportunities arise from the financing of and investments into companies that offer solutions for adapting to climate change and the funding of adaptation solutions in the real estate market (residential and commercial real estate). (Opportunity Climate Change Adaptation) | Group Real Estate Financing (REF) Policy | Lever Promoting a sustainable real estate sector Lever Emission reduction in the energy sector | Portfolio decarbonisation target
Erste Group’s Scope 1, 2 and 3 CO 2 e emissions (from upstream value chain, own operations and financed emissions) contribute to climate change and thus to global warming. (Negative Impact Climate Change Mitigation & Energy) | Group Real Estate Financing Policy (REF) Group Responsible Financing Policy (RFP) Group Corporate Lending Principles (CLP) | REF Promoting a sustainable real estate sector RFP Emission reduction in the energy sector CLP: Client engagement Lever: Emission reduction in own operations | Portfolio decarbonisation target Net Zero operations targets
Price instability on the energy market due to climate change can result in decreased profitability in companies in energy-intensive sectors as well as liquidity shortage of retail clients, leading to a higher default risk and a related increase in risk provisions for Erste Group, impacting P&L as well as own funds. (Risk Energy) | Group Retail Credit Risk Management Policy Group Corporate Lending Principles Group Real Estate Financing (REF) Policy | Lever Promoting a sustainable real estate sector Lever Emission reduction in the energy sector Lever: Client engagement | Portfolio decarbonisation target
Erste Group faces a higher credit risk as climate-related transition events (e.g. carbon pricing and regulatory interventions) can lead to negative effects on the profitability of business models and the financial stability of debtors. The consequences are increased risk provisions for Erste Group and connected negative impacts to its P&L and own funds. (Risk Climate Change Mitigation) | Group Retail Credit Risk Management Policy Group Corporate Lending Principles | Lever Promoting a sustainable real estate sector Lever Emission reduction in the energy sector | Portfolio decarbonisation target

Concerning all policies, an ongoing dialogue is conducted with relevant stakeholders such as supervisory and regulatory
authorities, investors, analysts and rating agencies as well as academic and environmental institutions and NGOs. Inputs from
these stakeholders were received through bilateral talks, conferences and supervisory dialogues regarding climate change and are
consequently used in Erste Group’s policy setting process. For more details on consideration of interests and views of stakeholders
please refer to chapter SBM-2.
The below mentioned policies need to be implemented by the management body of relevant Erste Group’s subsidiaries.
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SUSTAINABLE FINANCE METHODOLOGY (SFM)
Policy objectives to address impacts, risks and opportunities
Erste Group’s primary environmental impact stems from its lending activities, specifically the emissions generated by the projects it
finances. As a financial institution, Erste Group plays an important role in facilitating the transition to a low-carbon economy by
actively engaging with its clients and supporting them on their decarbonisation journey. Considering the climate crisis, this means
to mobilise funds to create a fairer and more prosperous world for all, thereby contributing to a sustainable future. The SFM
outlines methodology for classifying sustainable financings, focusing on renewable energy and energy-efficient buildings, as well as
other sustainable activities (for more details see chapter SBM-1). No external third‑party standards or initiatives were identified as
directly relevant to the policy.
The Sustainable Finance Methodology and thus Erste Group’s sustainable financings, is a classification that primarily addresses its
opportunities and positive impacts and, under certain conditions, may contribute to its decarbonisation targets:
_ Additional financial opportunities arise from Erste Group’s financing of customers supporting their decarbonisation and
transition to a sustainable state.
_ Erste Group’s financing of renewable energy projects enables CO 2 e-neutral energy production, which is necessary for the
transition to an economic system within the planetary boundaries.
_ Erste Group’s financing of and investments in renewable energy projects (e.g. energy from renewable energy sources such as
solar energy or wind power) enable CO 2 e-neutral energy production and offers new opportunities for the portfolio.
_ Through the financing of climate-change adaptation solutions, Erste Group has a positive impact on reducing vulnerabilities to
climate change impacts.
Sustainable Financings have demonstrable impact on decarbonization in real estate and renewable energy sectors:
_ In real estate, financing energy-efficient properties significantly reduces emissions intensity compared to traditional financing,
reinforcing the alignment between sustainable finance and climate objectives.
_ In the energy sector, renewable energy financing inherently supports climate mitigation by replacing fossil-based generation and
delivering measurable environmental benefits. These projects are systematically prioritized and tracked within Erste Group's
portfolio, reflecting the Group’s commitment to energy transformation and the expansion of clean energy solutions. In case of
project finance, Erste Group assumes that renewable energy projects (wind, solar, geothermal and hydropower) have an emission
factor for scope 1 and 2 of zero (see chapter E1-6 Methodology Business Loan, Corporate Bonds and Project Finance).
Actions, metrics and targets related to Sustainable Financings are partially linked with Material impacts, risks and opportunities
(IROs) outlined in chapter E1 SBM-3.
Methodology
‘Sustainable financing’ is a term used by Erste Group to determine financings that address the interplay of Erste Group’s identified
environmental impacts and opportunities. This involves screening and evaluating Erste Group’s financed portfolio in accordance
with a bespoke approach and set of criteria, grounded in the principles of established standards and frameworks. With the
decarbonisation levers of ‘promoting a sustainable real estate sector’, ‘reduction of financed emissions in the energy sector’,
‘emission reduction in own operations’ as well as ‘client engagement framework’, Erste Group’s sustainable financings have a
primary focus on:
Real estate financings:
_ Energy efficient buildings with energy efficient indicators in the Energy Performance Certificate (e.g. EPC label A),
_ Buildings meeting the requirements for a ‘nearly zero energy building’ (NZEB) according to EU Directive 31/2010,
_ Buildings that account to the top 15% (based on an estimate) of the national or regional building stock expressed as operational
Primary Energy Demand (PED). This methodology is explained in chapter E1-4.
Renewable energy projects financings:
_ supporting the realisation of decarbonisation via financing innovative technologies or the shift from non-renewable to renewable
energy sources.
Further details on the screening approach and the criteria can be found in chapter E1-4. In addition, the above-mentioned
decarbonisation levers contributing to the achievement of the target are explained in chapter E1-3.
The Sustainable Finance Methodology provides the framework for classifying sustainable financings that support climate transition
of Erste Group’s clients and the achievement of 15% sustainable mortgages by 2027 and to the goal of reaching 25% sustainable
corporate financing by 2026. Through this, Erste Group continues to maintain its strong role in sustainable financings (see SBM-1
for more details on strategic priorities).
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Methodology outlook for 2026
Erste Group is refining its Sustainable Financing Methodology to better support decarbonization targets. The focus of Sustainable
Financing will be broadened to include a wider range of impactful activities and sectors, making it more relevant and connected to
market developments. Beyond energy-efficient buildings and renewable energy the refined approach will for example include,
among others, low-carbon manufacturing, water and efficiency improvements across all sectors. The updated methodology remains
anchored in established standards and robust governance, with ongoing stakeholder engagement ensuring alignment with market
expectations. The new approach will be implemented in 2026.
Scope
The methodology set out in the SFM is applicable to all credit institutions of Erste Group. The Sustainable Financing KPI only
applies to business lines of parent banks in the core markets of Erste Group for corporate and retail. Erste Group’s Sustainable
Financing KPI is an internal remuneration-linked metric and must not be confused with the Green Asset Ratio (GAR) KPI under
the EU Taxonomy.
The approach and process related requirements on sustainable financings are captured in the SFM. Any criteria and programme in
scope of sustainable financings is subject to approval by the Holding Board. The policy is only available internally.
GROUP RESPONSIBLE FINANCING POLICY
Policy objectives to address impacts, risks and opportunities
The Group Responsible Financing Policy outlines industry-specific ESG exclusion and phase-out criteria, including thresholds and
guidelines for determining transaction eligibility to prevent ESG related credit and reputational risk. It also defines non-financial
risk profiles that trigger detailed due diligence and scrutiny. Additionally, the policy describes assessment procedures for specific
sectors and subsectors to ensure informed decision-making aligned with Erste Group's commitment to providing responsible
financing services.
Thus, the policy supports portfolio decarbonisation targets by 2050. To reach this target, Erste Group has implemented a well-
defined structure and governance framework for the execution of decisions under the Group Responsible Financing Policy.
In 2025, there was a revision of the Group Responsible Financing Policy to support a responsible energy transition. Erste Group
addresses the current challenges and finances the coal phase-out, in a responsible, prudent way and in line with the EU Comission
Requirements.
In this context, Erste Group is committed to progressively reduce its financing of thermal coal mining and thermal coal-based
power generation, phasing out coal financing by 2030 in alignment with the National Energy and Climate Plans (NECPs) in its core
markets. The extension to 2035 applies exclusively to existing power‑generation and heat‑and‑steam clients that already have a
defined exit plan targeting 2035.
Another change in 2025 was driven by other priorities in the context of defense. Due to the significantly changed geopolitical
environment, the strategic importance of the defense sector in Europe has fundamentally shifted. Financial institutions are now
expected to contribute to collective security, industrial resilience and defense readiness, as outlined in the EU White Paper ‘Defense
Readiness 2030’. This is reflected in the changes towards the eligibility criteria of financing defense.
Methodology
The policy mandates a two-tier review process. To comply with the requirements of the policy, the deal originator must:
_ seek a dedicated dialogue with high-emitting clients. This typically starts with an industry and client-specific assessment of ESG
issues, to identify Sustainable Financing instruments that match the client’s sustainability and funding strategy. Additionally,
collect relevant information and documents related to the specific deal.
_ assess the non-financial risks in line with the Group Responsible Financing Policy and propose corresponding follow-up
measures if necessary.
The second review is carried out by local risk functions and the Local and Group Non-financial Risk Management (NFR) function.
They ensure that all respective risks are identified, assessed, measured, monitored, managed and properly reported by the Business
Units in the first line of defense and, in case it becomes relevant, guide the deal originator and associated employees through the
specific NFR process required by the deal in question.
Erste Group defines exclusion criteria for the energy sector, defense, as well as gaming and gambling sector, and additionally
covers the topic of biodiversity to advance the management of environmental and climate risks as well as energy security of actual
energy transition projects. These energy sector principles are based on accepted industry principles and acknowledged by various
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stakeholders as best practice. These principles are also aligned with Erste Group’s commitment to reduce carbon emissions as Erste
Group recognises the strategic importance of renewable energy and energy efficiency projects.
Scope
All products and services in the Corporates and Markets area for all Erste Group financial institution entities are in scope of this
policy, no matter whether the financing is direct or indirect, on- or off-balance-sheet financing and whether financial risks are
linked to it or not.
A client company/group is considered within the scope of the policy if the economic activity in scope of the deal accounts for more
than 5% of the group’s turnover. Not in scope of this policy are all retail business line products (except for defense transactions),
single payment transactions, transactions below an aggregate amount of EUR 1 million within an already approved limit (except for
defense transactions) and ‘responsible investments’ including Erste Asset Management.
By adhering to this policy, Erste Group commits to respect the demands by the EU Paris agreement as well as the EU taxonomy.
The policy, including any amendments or updates, is subject to formal approval by the Board and is published on Erste Group’s
website.
GROUP RETAIL CREDIT RISK MANAGEMENT POLICY
Policy objectives to address impacts, risks and opportunities
Price instability on the energy market due to climate change can result in decreased profitability for companies in energy-intensive
sectors as well as liquidity shortage of retail clients. Additionally, Erste Group faces a higher credit risk as climate-related transition
events can lead to negative effects on the profitability and the financial stability of debtors which might lead to increased risk
provisions and connected negative impacts on the profit and loss for Erste Group. The policy supports the achievement of the
portfolio decarbonisation targets by 2050. Decarbonisation levers primarily contributing are the ‘emission reduction in the energy
sector’ as well as the ‘promotion of a sustainable real estate sector’ (see chapter E1-3 for more details). For a detailed understanding
of the CO 2 e metrics associated with financed emissions, chapter E1-6 provides comprehensive results for the current and prior
years.
Methodology
The policy requires local entities to collect and store sustainability data, which can be obtained through an EPC of the financed
object or an alternative method of assessing energy classification. The policy includes special lending conditions based on the
energy efficiency values of the objects being financed. These conditions acknowledge that objects with lower energy efficiency are
more likely to result in higher future maintenance and investment costs, which could impact the repayment capacity of customers
and represent a higher credit risk. Higher energy efficiency means a lower carbon footprint for the building.
The recommended lending parameters for housing loans are differentiated by energy efficiency levels, with different maximum
loan tenors and Debt Service to Income (DSTI) ratios assigned to each energy efficiency category.
For customers planning to renovate the financed property, lending parameters that reflect the new energy performance category
expected to be achieved post-renovation can be applied at loan origination. The targeted energy performance level post-renovation
must be assessed and provided by locally acceptable methods at the time of loan origination.
Scope
The scope of the policy applies to entities in the group’s core markets and their respective subsidiaries that are engaged in lending
to private individuals and micro entities. The CROs of the local entities are responsible for the implementation of the policy. The
policy is available internally.
By adhering to this policy, Erste Group also follows the European Banking Authority (EBA) guidelines on loan origination and
monitoring as well as the EU GDPR and KYC (Know your costumer) requirements.
GROUP REAL ESTATE FINANCING POLICY
Policy objectives to address impacts, risks and opportunities
Erste Group benefits from the financial opportunities that arise from the financing of and investments into companies that offer
solutions for adapting to climate change and the funding of adaptation solutions in the real estate market (residential and
commercial real estate). However, Erste Group also encounters an elevated credit risk as climate-related physical risks can lead to a
devaluation of collateral and/or to negative effects on the business models and financial stability of debtors. The consequences are
increased risk provisions and negative impacts on Erste Group’s profit and loss statement and own funds. For this reason, Erste
Group’s Real Estate Financing (REF) Policy requires a sustainability assessment for real estate financing projects with exposure of
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EUR 20 million or above before making a credit decision. Financing assets with high CO 2 emissions which are considered high or
medium risk are subject to stricter lending criteria. In doing so, the policy contributes to the achievement of the portfolio
decarbonisation targets by 2050. One of the most important mechanisms for decarbonisation, which is crucial for achieving the
policy’s objectives is ‘promoting a sustainable real estate sector’ (see chapter E1-3 for more details). As part of the Real Estate
Financing Policy, Erste Group supports the adherence to recognized international sustainability standards and initiatives. When
assessing real estate financing, the technical screening criteria and ‘Do No Significant Harm’ principles of the EU Taxonomy
Regulation are taken into account where applicable. Detailed CO 2 e results for financed emissions, covering both the current and
previous years, are available in chapter E1-6.
Methodology
With regards to the monitoring process, the policy requires an assessment of energy efficiency, physical risk (e.g. flooding, drought
etc.) and the CO 2 e value of the asset. It requires a Technical Due Diligence report, which includes the documentation of following
areas:
_ Global Warming Potential for the life cycle of the building,
_ ESG Report,
_ Sensitive flood areas,
_ Energy Performance Certificate,
_ Energy Consumption,
_ Photovoltaic system,
_ Energy supply contracts on renewable/non-renewable energy sources and
_ Environmental report and strategy on climate risks and weather.
Scope
The scope of the policy encompasses all real estate financing transactions with corporate clients or client groups, regardless of
segmentation criteria. It covers the Group Commercial Real Estate segment, all specialised lending income-producing real estate
clients and clients with certain codes in the nomenclature statistique des activités économiques dans la communauté européenne
(NACE) related to the corporates segment or the industry segments of Real Estate or Hotels and Leisure. The policy is applicable to
all Erste Group entities engaged in such business activities. These entities are required to integrate the policy into their local
frameworks. Erste Group Bank AG has a dual role, both overseeing activities within the group and acting as a distinct legal entity
offering corporate banking services. For clients or client groups outside of Erste Group’s home markets, group standards are
applicable as defined in the country specifics.
GROUP CORPORATE LENDING PRINCIPLES
Policy objectives to address impacts, risks and opportunities
The Group Corporate Lending Principles policy defines group-wide rules and principles for corporate lending to ensure sound
credit risk management, responsible banking and standardised client creditworthiness assessments. The policy supports managing
risks stemming from energy and climate change mitigation by conducting a comprehensive ESG assessment of corporate
borrowers, with a turnover ≥ EUR 50 million and SMEs with transferable securities to trading on an EU regulated market. Erste
Group may face higher credit risk caused by climate-related transition events that can lead to negative effects on the profitability of
business models and the financial stability of debtors. The consequences are increased risk provisions for Erste Group and
connected to negative impacts to its profit and loss statement and own funds. For example, price instability in the energy market
due to climate change can result in decreased profitability in companies belonging to high emitting sectors.
By managing these risks, the policy supports Erste Group’s portfolio decarbonisation targets and potential subsequent emission
reduction. The key decarbonisation lever contributing to achieving the policy’s target is ‘emission reduction in the energy
sector’ (see chapter E1-3 for more details). Detailed CO 2 e results for financed emissions, covering both the current and previous
years, are available in chapter E1-6.
If clients are exposed to increased sustainability risks, these must be properly assessed with respect to their financial position in the
credit application and considered in the final lending decision as well as the rating. For large corporates in certain industries that
lack a climate transition plan and do not measure the current emissions, any new transaction including a policy exception must be
approved by the Credit Committee of Erste Group Bank AG. This ensures that material sustainability matters are integrated into
the lending process and encourages clients to adopt sustainable practices. Additionally, ESG assessments are updated annually to
reflect any changes in the client’s ESG risks.
Methodology
The evaluation of the client performance or solvency includes an assessment of its financial metrics and their engagement in
mitigation activities. ESG assessment questionnaires are used during the lending process to evaluate climate change mitigation
risks and how ESG factors may positively (mitigation) or negatively (risks) impact the financial performance or solvency of the
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client. Corporate borrowers, with a turnover ≥ EUR 50 million and SME’s with transferable securities to trading on a EU regulated
market are required to share their corporate carbon footprint as well as their carbon offsets. In addition, the client’s energy mix and
efficiency are analysed. A more sustainable energy mix and higher energy efficiency benefit the client’s overall performance in the
evaluation.
Scope
The policy is applicable to the whole group and covers all corporate clients (LC, SME, CRE, Corporates owned by Sovereigns or
Sub-Sovereigns, Public Sector). The policy explicitly excludes clients involved in suspicious and illegal activities or controversial
industries as well as pure financial holdings without transparency and captive/offshore companies which are consolidated into a
internal Group of Connected Clients.
By adhering to this policy, Erste Group complies with the FMA’s ‘Kreditinstitute-Risikomanagementverordnung’ (KI-RMV), as
well as the EBA Guidelines on loan origination and monitoring. The Management Board, particularly the CRO, is accountable for
the implementation of the policy. The policy is made available internally.
E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE MITIGATION
AND ADAPTATION
The energy and real estate sectors in Erste Group’s portfolio are key to its decarbonisation efforts as these have the highest
emissions. Therefore, to achieve its 2050 net zero emission ambition, Erste Group focuses on four portfolio decarbonisation lever s
that comprise several already implemented key actions. For a more comprehensive understanding of the CO 2 e results pertaining to
financed emissions, please consult chapter E1-6. The current and future operational and capital expenditures incurred to
implement the below actions are immaterial amounts. Achieved and expected GHG‑reduction contributions, as well as quantitative
and qualitative information on the progress made compared with prior periods, are not disclosed for all actions. Additionally, no
actions are in place to provide remedy to individuals harmed by actual material impacts.
DECARBONISATION LEVER ‘PROMOTING A SUSTAINABLE REAL ESTATE SECTOR’
Erste Group aims to reduce its financed emissions by increasing sustainable financing in the real estate sector through two main
enablers, its Financial Health Commercial Real Estate Tool to track the carbon footprint of commercial real estate portfolios and
the Renovation Financing and Energy Efficiency Calculator to assess its client’s home renovation need and energy efficiency.
Successfully motivating clients to take measures to improve the energy performance of the buildings they own, financed by the
Group, contributes to reducing financed emissions in absolute terms if higher emission-loans mature. The effectiveness of actions
under this lever further is assessed based on the attainment of the 25% sustainable corporate financing target and the 15%
sustainable mortgage target (see chapter E1-4 for more details on targets).
Enabler 1: Financial Health Commercial Real Estate Tool
Erste Group has developed the Financial Health Commercial Real Estate Tool to enhance client engagement, provide greater
transparency and improve the overall quality of its portfolio. It is expected that this instrument will have a positive impact on
climate change mitigation by enabling the identification and promotion of energy-efficient building practices.
By integrating asset-level data on energy performance and greenhouse gas (GHG) emissions, the tool allows both the bank and its
clients to actively track and manage the carbon footprint of commercial real estate portfolios. The tool raises client awareness and
encourages the adoption of renewable energy solutions, such as on-site solar power generation or green electricity procurement.
With this initiative Erste Group aims to enhance energy efficiency and reduce carbon emissions within its commercial real estate
holdings.
The Financial Health Commercial Real Estate Tool integrates client asset KPIs with benchmark values derived from Erste Group’s
portfolio data, internal policies and GHG thresholds. For instance, Erste Group compares client EPCs among other client assets in
the portfolio (EPC values of CRE assets). A pre-defined CO 2 e threshold allows Erste Group to identify assets that are desirable in
terms of CO 2 e emissions and are aligned with its portfolio reduction pathway. The tool enables clients to visualise their projects,
compare them with other portfolio projects and place them within the context of Erste Group’s commercial real estate
decarbonisation pathways.
The screening of each client within the portfolio is currentl y underway across all entities and will continue throughout 2026. The
primary objective is to engage with all relevant commercial real estate clients, utilising available underlying asset information. As a
result, the Financial Health Commercial Real Estate Tool indirectly contributes to climate change mitigation and GHG reduction
by facilitating the identification and promotion of energy-efficient building practices among clients.
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Enabler 2: Renovation financing and the Energy Efficiency Calculator
To support the energy efficiency transition in residential properties, Erste Group provides its retail clients with digital, web-based
solutions that simplify the process of assessing their home renovation needs. The renovation calculator tools help clients
understand their current property’s energy efficiency and identify potential improvements. By engaging clients through this
platform, Erste Group provides the possibility to get a clear picture of how their home’s energy efficiency can be improved, which
actions to take and how to quantify the business case for these improvements. The expected results include increased client
engagement via digital channels, with more homeowners adopting energy-efficient renovation measures. Additionally, clients are
encouraged to access subsidy programmes across the CEE region and to receive financing options, leading to better utilisation of
energy-saving technologies such as solar panels, heat pumps and home insulations. Where financially viable and credit risk
parameters are met, Erste Group is easing the time to cash for customers to receive financing for energy upgrades. This measure
supports the implementation and realisation of the Retail Credit Risk Policy, the SFM as well as the sustainable finance framework.
It contributes to the achievement of the target ‘sustainable retail mortgages’ as outlined in the table ‘Sustainable financing – actuals
and targets’.
Erste Group proactively engages with clients, offering renovation calculation and financing options through various channels. By
leveraging the renovation calculator and associated financing solutions, Erste Group supports clients in enhancing the energy
efficiency of their homes, thereby promoting sustainable housing solutions. The effectiveness of this initiative is monitored by the
granted renovation loans.
Scope of the decarbonisation lever
The geographical scope for the decarbonisation lever encompasses all regions of operations. The finalization of implementation
relates to a medium-term period. Currently in the rollout phase, the Financial Health Commercial Real Estate Tool is being
implemented across all Erste Group regions, with the screening of all existing stock assets expected to be completed in the short- to
medium-term. The tool focuses on the downstream value chain and addresses the commercial real estate portfolio of Erste Group.
Renovation Financing and the Energy Efficiency Calculator applies to the downstream value chain of Erste Group, focusing on
retail mortgage clients.The scope covers all regions of operation, particularly targeting clients with high energy intensity. Detailed
CO 2 e results for financed emissions, covering both the current and previous years, are available in chapter E1-6.
DECARBONISATION LEVER ‘FINANCED EMISSIONS REDUCTIONS IN THE ENERGY SECTOR’
Erste Group aims to reduce its financed emissions in the energy sector by increasing sustainable financing for renewable energy
projects and by reducing its loan portfolio in the coal sector. The contribution to decarbonisation targets significantly depends on
the nature of the financed company. For instance, a coal-reliant company that utilises the financing to implement adaptation
solutions (e.g. such as wind parks) can thereby reduce its reliance on fossil-based technology.
This lever contributes to the decarbonisation of Erste Group’s energy portfolio and is in line with the Sustainable Finance
Methodology which defines sustainable investments that contribute to climate-neutrality as well as the Group Responsible
Financing Policy which sets exclusion criteria for harmful socio-environmental economic activities, such as investments into
specific carbon-intensive energy activities. Additionally, it contributes to the objectives of the Group Corporate Lending Principles.
Therefore, this decarbonisation lever addresses the IROs of these policies as outlined in chapter E1-2. The actions of this lever help
achieve the policies’ objectives such as the 2050 net zero portfolio ambition as well as the 25% sustainable corporate target. The
achievement of the policies’ targets is outlined in chapter E1-4.
Through the key actions ‘renewable energy financing’ and ‘reducing coal financings’, investment in and financing of carbon-
intensive energy companies will be reduced, while financing renewable energy projects enables CO 2 e-neutral energy production,
which is necessary for the transition to an economic system within sustainable boundaries, offering new clean energy opportunities
for Erste Group’s portfolio.
Key action 1: Renewable energy financing
Erste Group’s renewable energy financing aims to increase the share of sustainable financing for projects that support the
transition to cleaner energy sources. By focusing on clients with decarbonisation technologies in its core regions, Erste Group seeks
to accelerate the adoption of renewable energy solutions, including wind, solar and battery storage. The anticipated impact includes
an increase in financing for renewable energy projects and a reduction in financed emissions from the energy and heat production
sectors, particularly if fossil-reliant companies transition to cleaner energy technologies. This initiative is a key measure
contributing to the realisation of Erste Group’s Sustainable Finance targets and goals.
As of year-end 2025, renewable energy exposures classified as sustainable financing account for 44% of the total electricity portfolio
in Erste Group's Core Group. These exposures are assigned a zero-emission intensity and relate to specific-purpose financing
activities in renewable energy generation, such as wind, solar and hydropower projects.
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This portfolio distribution reflects Erste Group commitment to the energy transition and its strategic focus on supporting the
expansion of renewable energy infrastructure. By maintaining a significant share of renewable energy financing, the Group
contributes to decarbonisation efforts and advances the transformation toward a low-carbon electricity system.
Key action 2: Reducing coal financings
In line with its Responsible Financing Policy, Erste Group is committed to progressively reduce its financing of thermal coal mining
and thermal coal-based power generation, phasing out coal financing by 2030 in alignment with the National Energy and Climate
Plans (NECPs) in its core markets (with an extension period until 2035 for existing clients within heat and steam, as well as power
generation if certain conditions are alraedy in place such as a credible transition plan for the exit until 2035). For the oil and gas
sector, Erste Group has committed to avoiding any expansion of financing for oil and gas exploration unless it is crucial for
independence from Russia and is indispensable for national energy security within Europe. Gas-fired generation and related
infrastructure may still serve as transitional solution and may be financed as long as they also meet the criteria set out in the EU
Taxonomy.
Erste Group actively engages with all clients exposed to thermal coal, focusing on understanding their transition plans. It analyses
all clients in this sector in-depth during the annual review process to assess and align their transition plans with the bank’s 2050 net
zero ambition. This includes identifying clients with over 25% of revenues from thermal coal and requiring them to present a
credible, time-bound exit plan. Relationship managers are equipped with single-client assessment toolkits that use public and
internal information to assess each client’s transition readiness and their contribution to Erste Group’s targets. Erste Group ensures
that its engagement focuses on helping oil and gas sector clients adopt environmental action plans and decarbonisation strategies.
On one hand, this includes avoiding financing for extraction in unconventional sectors, such as oil sands or Arctic exploration. On
the other hand, Erste Group is prioritising engagements of high emitting clients, who are part of their sector’s decarbonisation
targets, to assess their transition plans including the necessary CapEx investments.
Through the implementation of the two outlined measures, this initiative will result in a substantial reduction in financed
emissions intensity. Renewable energy financing currently constitutes the second-largest component of Erste Bank’s 25%
sustainable financing target. Following commercial Real Estate Financing Policy, it is the most significant contributor to the
reduction of financed emissions. The coal exit engagement strategy is expected to achieve a notable reduction in financed emissions
associated with fossil fuels. Focusing on specific-purpose financing in renewable technologies, such as wind, solar and hydro, will
further reduce Erste Group’s financed emissions and significantly contribute to the 25% corporate sustainable financing target.
Additional information on the achieved GHG reductions can be found in table ‘Portfolio Decarbonisation Targets,’ with particular
emphasis on the electricity production sector.
Scope of the decarbonisation lever
The scope of the ‘Sustainable Financing for renewable energy’ measure covers the downstream value chain of Erste Group,
specifically targeting renewable energy projects in the energy and heat production sectors. The geographic scope encompasses all
regions of Erste Group, with a primary focus on high-exposure markets such as Austria, Czechia, Slovakia and Romania. The
implementation of the Sustainable Financing measure for renewable energy is designed for a long-term period.
The scope of the ‘coal portfolio reduction’ measure applies to the downstream value chain of the bank and covers all entities and
regions of Erste Group. The time horizon for the reduction of the coal portfolio is medium-term, with in-depth analysis and
transition plan assessments scheduled to be completed by 2026.
DECARBONISATION LEVER 'CLIENT ENGAGEMENT FRAMEWORK'
The client engagement framework is a holistic approach that is aimed to support the shift of the clients toward low‑carbon business
models while ensuring alignment with Erste Group’s portfolio decarbonization targets.
The client engagement framework represents the toolkit consisting of several elements such as ESG Assessment Questionnaire,
Responsible Financing Policy and Sustainable Finance Methodology. While the later tool provides framework for classifying
sustainable financings that support climate transition of Erste Group’s clients, the questionnaire facilitates data collection on the
environmental footprint of large corporate, commercial real estate and commercial residential real estate (Wohnbau), thus enabling
the Group to identify clients which are prone to environmental, climate, social and governance risks. It is updated at least annually
and allows Erste Group to assess the impact of ESG factors on credit risk. Thus, already as of today, Erste Group evaluates the
transition plans of the clients and aligns them with the sector’s decarbonisation targets.
In 2025 the ESG Assessment has been enlarged focusing on the resilience of ESG risks including transition risk and embraces
clients vulnerability to physical risks and nature-related risks.
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The process follows a structured three-phase approach consisting of: (1) clients assessment and selection, (2) engagement and
dialogue and (3) monitoring. The client selection process on Erste Group level was finalised in fall 2025 that will enable
relationship managers to engage with the clients following the lending processes throughout the year 2026. The revised framework
will further contribute into Erste Group’s engagement with clients using a strategy tailored to their maturity in the transition
journey. Moreover, the framework will ensure that ESG considerations are systematically integrated into client relationships, credit
processes and portfolio steering.
Through this framework, Erste Group aims to act as a trusted partner for its clients, enabling them to navigate the challenges of the
green transition while safeguarding financial stability. By combining risk management with financing solutions, Erste Group
contributes to a sustainable economy and long-term value creation for all stakeholders.
Scope of the decarbonisation lever
The ‘Client Engagement Framework’ lever was developed in a first phase for large corporate clients within Erste Group’s lending
portfolio and covers all entities and regions of the Group. The client engagement approach will enable Erste Group to gain deeper
insights into Erste Group’s clients’ transition plans. The Group’s approach focuses on supporting clients in this transition, but also
includes a reassessment of the relationship with clients who are unwilling to commit to progress. The implementation of this lever
is designed as a long-term initiative.
DECARBONISATION LEVER ‘EMISSION REDUCTION IN OWN OPERATIONS’
Erste Group aims to decarbonise its operations by decarbonising employee mobility through electrification, enhancing building
energy efficiency, switching to low-carbon energy sources and increasing employee engagement through trainings and joint action.
The implemented actions target the bank’s CO 2 e emissions from own operations, thus contributing to its net zero operations goal.
Erste Group’s actions currently focus on the reduction of scope 1 and 2 emissions as managing operational scope 3 emissions
represents a significant challenge, as these emissions are largely influenced by the activities of third parties and external
stakeholders. Please refer to chapter E1-4 to gain a deeper understanding of the achieved GHG emission reductions within scope 1
and 2. Additionally, chapter E1-6 outlines the current CO 2 e balance results and those from the previous year. For more insights into
energy consumption and its breakdown, please see chapter E1-5.
No significant capital expenditure and operating expenditure is required for the described measures.
Scope of the decarbonisation lever
The implementation of the measures relates to the short-term period for employee engagement and awareness and to the medium-
term period for decarbonisation of employment mobility, increased energy efficiency of own buildings and low carbon energy use.
The decarbonisation lever is measured with the net zero target which is applicable to Erste Group Bank AG, Erste Bank Oesterreich
and its subsidiaries and CEE subsidiaries in the core markets. The savings banks of Haftungsverbund that are not majority-owned
are not included in this lever.
The table presents the relevant actions/levers together with their associated targets; information on the achieved emission
reductions is provided in subchapter E1-4.

Action/Lever | Target
Enabler 1: Financial Health Commercial Real Estate Tool | Decarbonisation target for Commercial Real Estate, sustainable finance real estate target
Enabler 2: Renovation Financing and the Energy Efficiency Calculator | Decarbonisation target for mortgage, sustainable finance real estate target
Key action 1: Renewable energy finance | Decarbonisation targets for heat and steam production and for electricity production, sustainable corporate finance target.
Key action 2: Reducing coal financing | Decarbonisation targets for heat and steam production and for electricity production.
Decarbonisation lever ‘Client engagement framework’ | All decarbonisation targets except those for commercial real estate and mortgages
Decarbonisation lever ‘Emission reduction in own operations’ | Scope 1 and 2 targets

E1-4 – TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION
PORTFOLIO DECARBONISATION TARGETS
Erste Group’s decarbonisation targets are presented in the ‘Portfolio decarbonisation targets and actuals ’ table, detailing emission
scopes, the base year, the target value, the reference value and the selected scenario pathways and methodologies. Erste Group’s
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GHG emission reduction targets are scientifically sound and compatible with the group’s ambition to achieve a net zero status of its
portfolio by 2050.
The 2050 net zero portfolio ambition is strategically designed to evaluate the effectiveness and efficiency of Erste Group’s initiatives
in mitigating the emissions associated with its financing activities. This target not only serves as a benchmark for assessing the
success of various measures implemented to reduce the carbon footprint of financed projects, but also underscores Erste Group’s
commitment to sustainable finance.
The policies described in chapter E1-2, such as the SFM, the Group Responsible Financing Policy, the Group Corporate Lending
Principles Policy, the Group REF Policy and the Group Retail Credit Risk Management Policy, collectively support the achievement
of the portfolio decarbonisation target by addressing Erste Group’s material IROs as listed in the table ‘Material Impacts, Risks and
Opportunities’ in chapter SBM-3 . The portfolio target is primarily achieved through a reduction in financed emissions in the energy
sector as well as the promotion of a sustainable real estate sector. This is explained in more detail in the prior chapter E1-3.
By focusing on the energy and real estate sectors as well as client engagement, Erste Group aims to address major sources of
emissions through sustainable financing, energy efficiency improvements and the transition to renewable energy sources. These
efforts are expected to contribute significantly to achieving the GHG emission reduction targets. The portfolio decarbonisation
targets address Erste Group’s downstream value chain and applies to all regions in which it operate in line with the internally
defined materiality threshold.
Client executives, industry experts and sustainability advisors were engaged to ensure that Erste Group’s goals are both ambitious
and aligned with broader industry standards and expectations.
The following medium- and long-term targets have been set to define the path towards a net zero portfolio and make progress
clearly measurable:
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Portfolio decarbonisation targets and actuals

|  |  |  |  | Baseline | Value | Internal Risk Appetite | Targets
Sector | Metric | Methodology 1 | Scenario/ pathway | Emissions scope 2 | Year | Value | 2025 | Reduction in % | Value 2025 | Status 3 | 2030 | 2050
Mortgages 4 | kgCO 2 e/m² | Internal model | XDC ITR 2.2°C | 1 and 2 | 2024 | 45.2 | 43.7 | -3% | n/a | n/a | 32.1 | 5.1
Commercial real estate 4 | kgCO 2 e/m² | Internal model | XDC ITR 1.7°C | 1 and 2 | 2024 | 32.9 | 32.0 | -3% | n/a | n/a | 21.9 | 5.7
Electricity production | kgCO 2 e/MWh | PACTA | IEA NZE2050 | 1 and 2 | 2022 | 357.1 | 97.2 | -73% | 315.0 | not at risk | 182.7 | 21.6
Heat and steam production 5 | Tsd tCO 2 e | SBTi AC | IEA NZE2050 | 1 and 2 | 2022 | 1,614.3 | 747.3 | -54% | 1,324.0 | not at risk | 924.0 | 159.3
Oil and gas extraction 5 | Tsd tCO 2 e | PACTA | IEA NZE2050 | 1,2 and 3 | 2023 | 1,020.4 | 200.0 | -80% | 1,000.0 | not at risk | 923,7 | 368.6
Automotive 6 | gCO 2 e/km | PACTA | IEA NZE2050 | 1,2 and 3 | 2023 | 169.8 | 153.3 | -10% | 170.0 | not at risk | 103.6 | 31.2
Iron and steel 6 7 8 | tCO 2 e/tonne steel | PACTA | IEA NZE2050 | 1 and 2 | 2023 | 1.5 | 1.4 | -2% | 1.5 | not at risk | 1.1 | -
Cement production 9 | tCO 2 e/tonne cement | SBTiSDA | IEA NZE2050 | 1 and 2 | 2023 | 0.6 | 0.5 | -14% | 0.6 | not at risk | 0.5 | 0.0

1 Erste Group’s baseline values fulfil the requirements and calculation approach of third-party standard setters such as SBTi and PACTA. Those standards are based on the latest findings from leading environmental institutions, such as the IPCC. Hence, Erste Group’s baseline
value is to be considered a representative one.
2 The given scopes represent emissions from Erste Group’s downstream activities, in particular the scope 1, 2 and where significant also scope 3 emissions from the financed company / project.
3 Target achievement 2030
4 Mortgage and Commercial real estate targets defined based on proprietary internal model (driven by portfolio and market drivers) and benchmarked using X-Degree Compatibility model (version 2025.08) by Right° based on science GmbH. Implied temperature of 2050 target at
2.2°C for Mortgages and 1.7°C for Commercial real estate. More details in the respective chapter on Mortgage and Commercial real estate decarbonisation. SBTi SDA methodology was applied to determine the 1.5°C benchmark. For the Mortgages portfolio, this translates into a
49% reduction (23.2 kgCO2e/m2) from the 2024 baseline by 2030 and a 99% reduction (0.6 kgCO2e/m2) by 2050. For the commercial real estate portfolio, the required reduction amounts to 47% (17.6 kgCO2e/m2) from the 2024 baseline by 2030 and 95% (1.7 kgCO2e/m2) by
2050.
5 Target setting was based on clients Erste Group engaged with at point of target setting; with supporting local targets focusing on entities where on balance bookings were recorded. Regular monitoring is performed on total Group level to ensure a full coverage of Erste’s client
engagement, no matter in which entity bookings are conducted. Therefore, group entities considered during target setting differ from the scope of entities contributing to disclosed achieved reductions. Starting with 2025, the savings banks' portfolio was incorporated into
decarbonisation monitoring.
6 Decarbonization targets are defined on the Erste Group level and cascaded to Entities applying materiality threshold. Thus, the targets for Automotive are cascaded to Austria, Romania, Hungary, Slovakia and Czech Republic, while the targets for Iron & Steel are cascaded to
Austria, Hungary, Czech Republic and Slovak ia. Starting with 2025, the savings banks' portfolio was incorporated into decarbonisation monitoring.
7 No long-term targets for 2050 were set for the iron and steel production sector, as the technological uncertainties - such as the development of alternative fuels like hydrogen to a competitive, industrial scale - remain significant. Ongoing efforts aim to improve the basis for long-
term targets, enabling the definition of specific targets up to 2050 in subsequent years.
8 In case no specific data are available, parameters used at point of target setting are applied in the monitoring.
9 The base year / actual values are based on available input data (e.g., client sustainability reports), some of them only show CO 2 values as numerator or tonne cementitious as a denominator. If, instead of the CO 2 e intensity per tonne of cement, only the CO 2 intensity per tonne of
cementitious was available, this was used.
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In total, to date, the decarbonisation targets have been set for a credit risk volume of EUR 128 billion, this represents 64.3% (2024:
EUR 108 billion, this represented 56.9%) of the volume covered by the financed emissions calculation. The portfolios with
decarbonisation targets cover 40.5% (2024: 40.1%; scope 1 and scope 2) and 17.1% (2024: 19.7%; scope 1, 2 and 3) of financed
emissions in 2025. The observed year-over-year increase in the coverage of portfolio decarbonisation targets is primarily influenced
by the onboarding of savings banks in Heat and Steam production, Oil and gas extraction, Automotive, Iron and steel and Cement
production sectors.
As all targets are derived based on the Science-Based Target Initiative (SBTi) and PACTA methodologies, these targets serve as
1.5°C scenario-based benchmarks, except the real estate sectors. The real estate sector is further described in the section
‘Commercial real estate and mortgage decarbonisation target’. From a risk management perspective, aligning scenario assumptions
with realistic portfolio trajectories allows Erste Group to identify potential vulnerabilities early and safeguard the resilience of its
business model. Based on this analysis, economic capital was allocated to reflect the transition risk associated with the portfolio’s
current temperature alignment.
Methodology, defined measures and the current progress towards the targets will be described below.
Erste Group has followed a phased‑in approach for onboarding the savings banks into the Group’s decarbonisation targets. In 2024,
the savings banks’ portfolios were integrated into the decarbonisation framework for the sectors such as mortgages, commercial
real estate and electricity production. For the remaining sectors, targets for the savings banks’ portfolios were defined in 2024 and
were incorporated into the monitoring of decarbonisation progress from Q1 2025 onwards. As a result, a direct year‑on‑year
comparison of decarbonization progress for these latter sectors is not feasible.
After defining portfolio decarbonisation targets for priority sectors, Erste Group’s risk appetite evaluation has been enhanced
through the introduction of an internal indicator. The internal indicator addresses the question at what level of CO 2 e emissions or
CO 2 e emissions per physical metric (identical to the metric used in decarbonisation target setting) in the respective year (e.g., 2025)
puts the target achievement for 2030 at risk. Thus, its aim is not only to support the commitment to climate action, but also to
enable pro-active steering of portfolio development along the defined decarbonisation path. The internal indicator is set as a buffer
above the downward decarbonisation pathway, thus allowing minor deviations above it but still ensuring sufficiently early alert in
case of possible misalignment with 2030 targets.
In case of a trigger event, the reasons for the indicator breach are analysed and mitigation measures are developed with the
involvement of relevant stakeholders on a case-by-case basis. This process is dependent on the drivers, industry specifics, impact as
well as necessary time for remediation.
The progress along the decarbonisation pathway is monitored quarterly via dedicated internal reports presented to the
management. Moreover, the actual results are approved by the Management Board as part of the Group Risk Report.
The explanation on the progress is elaborated in the chapters dedicated to the decarbonisation of the respective sectors.
Electricity sector decarbonisation target
The focus within the electricity production portfolio is on diversified electricity producers as well as project-based financing of
electricity production. A thorough review is applied to confirm that the activities are centred on electricity generation. This focus
supports the broader goal of reducing carbon emissions in the power sector, which is a significant contributor to global GHG
emissions.
Moreover, the energy sector will be the central cornerstone of Europe’s decarbonisation success. As one of the most pollutive
industries at present, it also offers a substantial opportunity to transform from fossil fuels to renewable energy. Besides, a more
environmentally sustainable energy mix, origination from electricity transformation, will be a key contributor to reduce emissions
in other industries.
To support the energy transition, the EU climate objectives have helped to increase the ambition of national programmes for
deploying clean energy measures. Electricity systems need to be flexible and require growth in battery energy storage and flexible
peaking power plants such as combined cycle gas turbines. Expansion and modernisation of transmission and distribution grids
offer opportunities for financing to meet growing electrification demands.
This portfolio’s scope includes direct emissions (scope 1) from the combustion of fossil fuels and indirect emissions (scope 2)
associated with the purchase of electricity, heat and cooling necessary for operations.
E rste Group’s methodological approach is grounded in the Paris Agreement Capital Transition Assessment (PACTA) framework,
customised for financial institutions. This allows to track and manage the physical emission intensity of electricity producers
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within its portfolio. Decarbonisation targets are defined considering a physical metric and measured as kgCO 2 e/MWh. This metric
plays a crucial role in evaluating whether Erste Group’s clients are prepared for the necessary transition in line with the 2030 and
2050 decarbonisation objectives.
To align with global efforts to limit temperature rise, Erste Group has adopted the IEA Net Zero 2050 scenario as the guiding
benchmark. The targets aim for a 49% reduction in the physical emission intensity of the portfolio by 2030, bringing it down from a
2022 baseline of 357.1 kgCO 2 e/MWh to 182.7 kgCO 2 e/MWh. Erste Group is tracking the progress closely, with 2025 interim results
showing a reduction of 73% to 97.2 kgCO 2 e/MWh comparing to the baseline. The actual metric in terms of physical emission
intensity is in line with the internal indicator.
Year‑over‑year, physical emission intensity in the electricity production portfolio decreased by 29%, reflecting the Group’s
continued focus on energy transformation initiatives and increased exposure to renewable energy assets. Financed emission
intensity (Scope 1 and 2) in terms of tCO 2 e/EUR Mio, in scope of decarbonisation monitoring, declined by 7% due to financed
emission fluctuation and change in portfolio composition.
For deriving the future trajectories for each technology, the NZE 2050 (1.5°C) scenario was used. The IEA, with its ‘Net Zero by
2050: A Roadmap for the Global Energy Sector’ report, depicts the pathway to building a global energy sector with net zero
emissions by 2050. The key drivers of this scenario are electrification and electricity supply and demand. Electricity supply will
change with the share of renewables rising and the use of coal falling globally. Natural gas is used as a transition up to 2030 but will
decline in the long term. The path involves replacing carbon-intensive processes with renewable technologies wherever feasible.
For example, this includes waste-heat recovery, geothermal technologies for heating and solar and wind for electricity production.
Heat and steam sector decarbonisation target
The focus within the heat and steam production portfolio is local, mainly involving district heating units. Most of the clients from
this sector are in Czechia, Slovakia and Austria and therefore national energy and climate plans in these countries are of
importance. Thus, Erste Group applies a thorough review process to confirm that its activities are centred on heat and steam
generation. This portfolio’s scope includes direct emissions (scope 1) and indirect emissions (scope 2) associated with the purchase
of electricity, heat and cooling necessary for operations.
The targets aim for a 43% reduction in the absolute financed emissions of Erste Group’s portfolio by 2030, bringing it down from a
2022 baseline of 1,614.3 thousand tCO 2 e to 924.0 thousand tCO 2 e. Erste Group is tracking progress closely, with 2025 interim
results showing a reduction of 54% to 747.3 thousand tCO 2 e comparing to the baseline. The actual metric in terms of absolute
financed emissions is in line with the internal indicator. A direct comparison of 2025 actuals with the previous year (2024: 584.7
thousand tCO₂e) is not feasible due to the onboarding of the savings banks’ portfolio into the decarbonization scope and the
resulting restatement of the baseline value. As a result, the 2024 and 2025 values are based on different coverage scopes and
therefore should not be interpreted as year‑on‑year performance differences.
The clients in this sector, being usually a part of the integrated electricity producing companies, have been moving to renewable
sources and this transition is visible in the downward movement of financed emissions.
The derivation of the targets follows the absolute contraction approach (1.5°C) as foreseen by the SBTi tool and is enhanced with
the net zero tool for long-term targets (2050), assuming a 90% reduction of emissions. In this case, the electricity demand for
cooling is foreseen to increase in developing economies. According to extremely hot or cold periods, the electrification of heating
and cooling will become a challenge for the electricity grid.
Oil and gas upstream decarbonisation target
The focus within the oil and gas portfolio is exclusively on clients’ upstream activities, thus Erste Group applies a thorough review
process to confirm that activities are related to upstream. Decarbonisation of this portfolio includes scope 1, 2 and 3 emissions.
The methodological approach is grounded in the PACTA framework, customised for financial institutions. The scenario used is
World Energy Outlook (WEO) 2021 NZE aligned (1.5°C) global. The scenario implies the decline in global oil demand and foresees
that natural gas demand remains mostly stable until 2030. The scenario anticipates oil demand reduction coming from the shift of
passenger vehicles, transport cars and heavy trucks to electric power. The share of natural gas in the global energy mix remains
around 11%, while around 70% of natural gas use in 2050 in NZE is equipped with carbon capture, utilisation and storage.
Erste Group’s targets aim for a 9% reduction in the absolute financed emissions of the portfolio by 2030, bringing it down from a
2023 baseline of 1,020.4 thousand tCO 2 e to 923,7 thousand tCO 2 e. Erste Group is tracking progress closely, with 2025 interim
results of 200.0 thousand tCO 2 e that is in line with the internal indicator.
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The baseline has factored in Erste Group’s business with its oil and gas clients at the point of target setting. Erste Group has
committed to refraining from increasing its exposure to oil and gas exploration, with the exemption of projects that align with
Europe’s national energy and climate plans (NECPs), as mandated by the European Commission.
Iron and steel decarbonisation target
Erste Group has defined a net zero target for its clients in iron and steel manufacturing and casting. This portfolio includes scope 1
and 2 emissions.
The methodological approach is grounded in the PACTA framework, customised for financial institutions. This allows Erste Group
to track and manage the physical emission intensity of iron and steel production within the portfolio that is measured as tCO 2 e/
tonne steel. This metric plays a crucial role in evaluating whether clients are prepared for the necessary transition in line with Erste
Group’s 2030 target. To align with global efforts to limit temperature rise, it has adopted the Net Zero 2050 (WEO 2021) scenario as
the guiding benchmark. As there is an uncertainty in the development of the technology that is needed to support transition to net
zero for this sector after 2030, the targets are set only for 2030. The scenario assumes a shift on the technology side from basic
oxygen furnaces that release large amounts of carbon dioxide and nitrogen oxide to electric arc furnaces, supported by usage of
renewable energy.
The target is a 24% reduction in the physical emission intensity of Erste Group’s portfolio by 2030, bringing it down from a 2023
baseline of 1.5 tCO 2 e/tonne steel to 1.1 tCO 2 e/tonne steel. Erste Group is tracking the progress closely, with 2025 interim results
showing a reduction of 2% to 1.4 tCO 2 e/tonne steel comparing to the baseline. The actual metric in terms of physical emission
intensity is in line with the internal indicator. The slight decrease of emission intensities compared to the baseline reflects the
gradual movement of the clients to the usage of electric arc furnaces in their processes.
A direct year‑over‑year comparison for this sector is not possible due to methodological adjustments and additional portfolios
included in 2025. The respective savings banks and corporate bond portfolios were included in the decarbonization scope and
monitoring of the physical emission intensity now relies on actual values rather than forecast‑based estimates. An indicative
comparison with the previous year suggests an around 20% increase in physical emission intensity, while financed emission
intensity (Scope 1 and 2) in terms of tCO 2 e/EUR million decreased by around 15%.
Automotive decarbonisation target
Erste Group has defined a net zero target for the original equipment manufacturers, namely manufacturers of light duty vehicles
(LDV). A thorough review process was carried out to identify the clients whose business activities fall under the definition of this
sector. This portfolio includes scope 1, 2 and 3 emissions, thus enabling the consideration of emissions for the entire lifetime of the
vehicle.
The methodological approach is grounded in the PACTA framework, customised for financial institutions. This allows Erste Group
to focus on the automotive value chain that controls the bulk of the impact and the decarbonisation efforts, to track and manage the
physical emission intensity of auto manufacturers within the portfolio that is measured as gCO 2 e/km, following the well-to-wheel
methodology. This metric as well as technology mix plays a crucial role in evaluating whether Erste Group’s clients are prepared for
the necessary transition in line with Erste Group’s 2030 and 2050 decarbonisation objectives.
To align with global efforts to limit temperature rise, Erste Group has adopted the Net Zero 2050 scenario (WEO 2021) as guiding
benchmark. The targets aim for a 39% reduction in the physical emission intensity of Erste Group’s portfolio by 2030, bringing it
down from a 2023 baseline of 169.8 gCO 2 e/km to 103.6 gCO 2 e/km.
The reduction of the CO 2 e emissions captured in Erste Group’s decarbonisation path is mostly driven by the EU regulation
published by the European Parliament, stating the EU ban on sale of new petrol and diesel cars from 2035 as part of the programme
Fit for 55. Moreover, the broader EU Green Deal and Sustainable and Smart Mobility Strategy provide the policy umbrella for
decarbonizing transport.
Erste Group is tracking progress closely, with 2025 interim results showing a reduction of 10% to 153.3 g CO 2 e/km comparing to the
baseline. The actual metric in terms of physical emission intensity is in line with the internal indicator. The development of
emission intensity in the portfolio of Erste Group resembles the trends that are seen on the market, namely moderate transition by
the auto manufacturers.
A direct year‑over‑year comparison for this sector is not feasible due to methodological and portfolio changes introduced in 2025.
An indicative comparison with the previous year suggests that physical emission intensity decreased by 9%, whereas financed
emission intensity (Scope 1, 2 and 3) in terms of tCO 2 e/EUR million increased by around 80%, primarily due to the more
comprehensive reporting of Scope 3 emissions data.
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Cement decarbonisation target
A net zero target of Erste Group is defined for the clients in cement manufacturing. A thorough review process was carried out to
identify the clients whose activities fall under the definition of this sector and to whom a client relationship exists. This portfolio
includes scope 1 and 2 emissions.
The methodological approach is grounded in the SBTi framework. Erste Group applies the Sectoral Decarbonisation Approach
(SDA) for 2030 and the Net Zero Tool for 2050. This allows it to track and manage the physical emission intensity of cement
production within Erste Group’s portfolio. It uses a key metric that measures the amount of CO 2 e emissions per tonne of cement
(tCO 2 e/tonne cement). This metric plays a crucial role in evaluating whether clients are prepared for the necessary transition in
line with the 2030 targets. To align with global efforts to limit temperature rise, it has adopted the Net Zero 2050 (IEA 2021)
scenario as the guiding benchmark. There is an uncertainty in the development of the technology needed to support the transition
to net zero for this sector after 2030.
The target is a 19% reduction in the physical emission intensity of the portfolio by 2030, bringing it down from a 2023 baseline of
0.594 tCO 2 e/tonne cement to 0.483 tCO 2 e/tonne cement. Erste Group is tracking the progress closely, with interim results showing
a relatively steady downward trajectory at 0.513 tCO 2 e/tonne cement by 2025, driven by business developments and positive
decarbonisation effects from existing clients. Based on the year-end monitoring of the decarbonisation progress of cement, the
actual metric is in line with the internal indicator (0.592 tCO 2 e/tonne cement) established by Erste Group, thus indicating that the
bank’s respective decarbonisation target set for 2030 is not at risk.
Physical emission intensity in terms of tCO 2 e/tonne cement recorded a decrease of 13% as of December 2025 in comparison with
the same period last year. When looking at the financed emission intensity in terms of tCO 2 e/EUR million, reduction in the same
period amounts to 4% and is influenced by change in portfolio composition, mainly onboarding of savings banks segment during
2025.
Erste Group categorises the portfolio assets based on the current and planned cement-related emission intensities of the clients and,
if not disclosed, of related national-wide cement associations to which the client belongs. This classification helps Erste Group to
assess clients’ readiness for the transition and shaping engagement strategies with them.
Mortgage and Commercial real estate decarbonisation target
Erste Group’s real estate decarbonisation targets are defined for clients in scope of the PCAF real estate module and cover scope 1
and 2 emissions. As communicated in the 2024 CSRD report, Erste Group proactively considered rebaselining these targets because
the existing pathways were not aligned with a 1.5°C scenario.
In 2025, the Group implemented significant methodological enhancements to the PCAF real estate module, including scope
expansion, the introduction of a machine-learning EPC proxy model and the consideration of a financed property flag. Combined
with the updated National Energy and Climate Plans by EU Member States, these improvements triggered the decision to
rebaseline the real estate decarbonisation targets in 2025.
The methodological approach of the rebaselining combined a proprietary internal model with a science based pathway assessment.
The internal model simulates the development of portfolio emission intensity based on asset-level data, energy performance
characteristics and market assumptions. In parallel, a science-based decarbonisation pathway is applied using the SBTi SDA
methodology aligned with a 1.5°C scenario (based on CRREM pathways). Both approaches allow Erste Group to track and manage
the physical emission intensity of this portfolio using a metric that measures the amount of CO 2 e emissions per square meter
(kgCO 2 e/m 2). To benchmark the results from the internal model and assess the implied temperature alignment, an external
analysis was conducted using X-Degree Compatibility (XDC) model developed by Right° based on science GmbH.
Mortgages
External benchmarking using the XDC model shows that Erste Group’s 2050 retail mortgage portfolio pathway (5.1 kgCO 2 e/m 2)
corresponds to an implied temperature alignment of 2.2°C. The updated mortgage portfolio decarbonisation target is to achieve a
29% reduction in the portfolio’s physical emission intensity by 2030, decreasing from a 2024 baseline of 45.2 kgCO 2 e/m 2 to
32.1 kgCO 2 e/m 2. The portfolio is predominantly composed of retail business volume. Erste Group closely monitors progress, with
interim results for 2025 showing a decline to 43.7 kgCO 2 e/m 2.
Financed emission intensity at the end of 2025 amounted to 33 tCO 2 e/EUR million. The Group has rebaselined decarbonisation
targets for this sector, and as stated previously enhanced PCAF real estate module thus no meaningful year-over-year comparison is
provided.
Decarbonising the residential mortgage segment remains highly dependent on government action, regulatory incentives and the
pace of national energy-system decarbonisation areas where progress in the CEE region is currently limited. Achieving a 1.5°C-
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aligned pathway would require large-scale building renovations, substantial energy-efficiency upgrades and a rapid shift towards
low-carbon heating technologies. These developments rely heavily on external factors such as the availability of public subsidies,
predictable long-term frameworks, simplified permitting procedures and accelerated decarbonisation of national electricity grids.
At present, progress in these areas remains uneven across Erste Group’s core markets and households continue to face significant
financial burden. As a result, the external environment limits the feasibility of achieving a fully Paris-aligned decarbonisation
pathway for this portfolio.
Given Erste Group’s priority to support clients in reducing the carbon footprint of their real estate assets, the Group has adopted a
prudent and responsible ambition that supports the decarbonisation of the housing sector while safeguarding affordability,
inclusion and access to finance. As regulatory frameworks evolve and government incentives strengthen, the Group will reassess its
decarbonisation pathway to ensure continued alignment with the broader transition of the real estate sector.
The rebaselined decarbonisation pathways have also been incorporated into the C&E scenario analysis to quantify transition-risk
impacts and ensure adequate capital planning. From a risk management perspective, aligning scenario assumptions with realistic
portfolio trajectories allows Erste Group to identify potential vulnerabilities early and safeguard the resilience of its business model.
Based on this analysis, economic capital was allocated to reflect the transition risk associated with the portfolio’s current
temperature alignment.
Commercial real estate
External benchmarking using the XDC model shows that Erste Group’s 2050 commercial real estate portfolio pathway (5.7 kgCO 2 e/
m 2) corresponds to an implied temperature alignment of 1.7°C, which confirm the previous ambition level set by Erste Group
(published in the 2024 CSRD report). The updated commercial real estate portfolio decarbonisation target is to achieve a 34%
reduction in the portfolio’s physical emission intensity by 2030, decreasing from a 2024 baseline of 32.9 kgCO 2 e/m 2 to 21.9 kgCO 2 e/
m 2. The portfolio predominantly consists of volumes in the corporate business segment, primary from the sub-segment commercial
real estate and SME. Erste Group closely monitors progress, with interim results for 2025 showing a decline to 32.0 kgCO 2 e/m 2.
Financed emission intensity at the end of 2025 amounted to 19 tCO 2 e/EUR million. The Group has rebaselined decarbonisation
targets for this sector, and as stated previously enhanced the PCAF real estate module thus no meaningful year-over-year
comparison is provided.
NET ZERO OPERATIONS TARGET
Erste Group has set a net zero target to reduce its operational scope 1 and 2 emissions by 90% in comparison to the base year (2017).
In absolute figures, the target is to reduce scope 1 and 2 emissions from 72,154 to 7,215 tCO 2 e by 2030. Additionally, chapter E1-5
provides more in-depth information on Erste Group’s energy consumption and its composition.
The target covers Erste Group Bank AG, Erste Bank Oesterreich and its subsidiaries and CEE subsidiaries in the core markets. The
savings banks of Haftungsverbund that are not majority-owned are not included in this target.
The net zero target for operational scope 1 and 2 emissions was set according SBTi´s net zero Standard and Target Setting tool v 1.1,
hence there is the compatibility with limiting global warming to 1.5°C. The target setting method applied is absolute contraction,
using a cross-sector pathway. It was set in 2021 and its ambition was updated to reflect the further development of the standard and
align to best practices. The target covers 100% of scope 1 and 2 emissions of entities in scope. For scope 2, the market-based method
is used to calculate the target. Erste Group’s baseline values fulfill the requirements and calculation approach of third-party
standard setter SBTi. Those standards are based on the latest findings from leading environmental institutions, such as the IPCC.
Hence, Erste Group’s baseline value is to be considered a representative one.
The net zero operations target addresses climate change mitigation and energy by aiming to reduce negative impacts through
energy mix and own GHG emissions. Currently, there is no formal policy covering the operational emission reduction target but an
internal action plan. The decarbonisation measures necessary, to achieve the operational target, have been identified to be
renewable energy transition, energy efficiency improvement, decarbonising employee mobility and employee engagement and
awareness trainings like explained in chapter E1-3.
An ongoing dialogue is conducted with relevant stakeholders such as supervisory and regulatory authorities, investors, analysts and
rating agencies as well as academic and environmental institutions and NGOs. Inputs from these stakeholders were received
through bilateral talks, conferences and supervisory dialogues regarding climate change and consequently used in Erste Group’s
target setting process. For more details on consideration of interests and views of stakeholders please refer to chapter ‘SBM-2 -
Interests and views of stakeholders’.
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The basis for Erste Group’s target monitoring and review process represent the annual emission calculation of scope 1 and 2
emissions including details on energy consumption and efficiency. With updated annual data, Erste Group assesses its performance
against the set targets and adjusts or plans measures accordingly towards the achievement of the target on an entity level, e.g. an
increased focus on switching to alternative heating systems in certain regions. In the last two years, Erste Group’s scope 1 and 2
emissions showed a significant decrease resulting from the switch to green electricity.
In 2025, scope 1 and scope 2 emissions remained broadly stable, with marginal increase of 0.16%, compared to the previous
reporting year, from 19,799 tCO 2 e to 19,830 tCO 2 e. Overall this continues to represent a substantial 73% reduction compared to the
base year 2017. Specifically, scope 1 emissions decreased from 25,733 tCO 2 e to 12,362 tCO 2 e, while scope 2 emissions fell from
46,421 tCO 2 e to 7,468 tCO 2 e compared to the base year. While Erste Group’s scope 2 emission remained stable, scope 1 emission
recorded a considerable decrease of 11% in 2025. This reduction was primarily driven by the growing share of electric vehicles in
the fleet which increased from 22% to 36% and enabled the Group to reach its 2025 short-term target of 25%.
At the same time, the decrease in scope 1 emission was counterbalanced by an increase in scope 2 emissions. The rise in scope 2
emissions was primarily due to lower volume of guarantees of origin purchased compared to the previous year and the inclusion of
emissions associated with data-centre operations. With these developments, the Group still remains on track to achieve its 2030
target.
Scope 1 and 2 targets

Targets | Metric | Baseline 2017 | 2024 | 2025 | Target 2030
Total scope 1 and 2 emissions | tCO2e | 72,154 | 19,799 | 19,830 | 7,215
Electric fleet | % of e-cars in total carfleet | — | 22% | 36% | 100%

SUSTAINABLE FINANCING TARGETS
To measure the effectiveness of actions implementing its Sustainable Finance Methodology (SFM), Erste Group has defined
sustainable financing targets for the corporate and retail core markets.
Methodology
The SFM outlines the following categories based on which a financing can be qualified as a ‘sustainable financing’:
1. either complies fully with the respective EU Taxonomy criteria for specific purpose financings or general purpose financings
weighed by counterpart’s most recently published Taxonomy-alignment KPI, if the purpose of the financing is unknown
(please refer to the ‘ EU Taxonomy Disclosure’ chapter for more information) or
2. activities for which simplified internal criterion sets for evaluation apply by either showing reduction in carbon emissions
compared to the market standard or by supporting climate and nature related objectives,
3. support of projects from supranational institutions in key-sectors,
4. fulfilment of project categories of voluntary frameworks,
5. support of dedicated national programmes.
Related to climate change mitigation economic activity ‘Construction of new buildings’
Considerable reduction in carbon emissions for the activity ‘Construction of new buildings’ is shown by a primary energy demand
that is 10% lower than the national NZEB standard. This is certified by an Energy Performance Certificate.
Climate change mitigation economic activity ‘Acquisition and ownership of buildings’
Financings for the activity ‘Acquisition and ownership of buildings’ are considered sustainable financing when the energy
efficiency benchmarks for the real estates show to be among the top 15% of the regional building stock. The general methodology
for real estate proxies has been provided by management experts. Reference benchmarks for energy demand are based on the
building energy code and the year of construction, taking into account the applicable technical standards at the time. They result in
an estimated primary energy demand to be used for a certain type of building in a given area, depending on the available
construction date information (e.g., building permit date, year of construction completion, year of construction from the energy
performance certificate). For this purpose, the top 15% of existing national building stocks are determined using the year of
construction respectively major renovation, using assumptions and extrapolation, such as a linear distribution between data points
available, the number of building permits per building use and age according to national legislation.
Climate change mitigation economic activity ‘Transportation’
Erste Group finances transportation activities that significantly reduce greenhouse gas emissions, including:
_ Rail Transport: Passenger and freight trains that have zero direct CO₂ emissions or operate primarily on electric infrastructure.
Freight wagons must not be dedicated to fossil fuel transport.
_ Road Vehicles: Cars, vans and motorcycles that meet strict EU CO₂ emission standards.
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Following categories are reflected as ‘Other’ in the table New Sustainable Corporate Financing
_ support of projects from supranational institutions in key-sectors (e.g. EIF, EIB),
_ fulfilment of project categories of voluntary frameworks (e.g. Green Bond Principles under International Capital Market
Association (ICMA), Green Loan principles under Loan Market Association),
_ support of dedicated national programmes (as per individual analysis).
Sustainable financings from all five categories stated above flow into the table ‘Sustainable Financings - actuals and targets’.
Actions, metrics and targets related to Sustainable Financings are partially linked with Material impacts, risks and opportunities
(IROs) outlined in chapter E1 SBM-3.
25% sustainable corporate financing target by 2026
The 25% sustainable corporate financing target addresses Erste Group’s identified positive impacts and opportunities related to
climate change mitigation and reduction of emissions in the sectors real estate and renewable energy. This includes primarily
financing of real estate projects and renewable energy, while also supporting Erste Group’s clients in their decarbonisation efforts
and transition to a sustainable state. The Sustainable Finance Methodology outlines which financings contribute to the target
achievement (see ‘Methodology’ in this chapter and E1-2 for more details).
Erste Group aims to achieve a ratio of 25% of sustainable financings towards corporates in its core markets, including Tiroler
Sparkasse in 2026. Several subsidiaries outside the core group have set comparable targets. The target is defined relative to the gross
carrying amount of corporate financing on the balance sheet.
15% sustainable mortgages target by 2027
The 15% target for sustainable mortgages tackles Erste Group’s recognised positive impacts and opportunities concerning climate
change mitigation and efficient use of energy. This involves financing and investing in real estate, renovation and energy efficiency
projects supporting the transition to a sustainable state. The Sustainable Finance Methodology outlines which financings
contribute to the target achievement (see ‘Methodology’ in this chapter and E1-2 for more details).
Erste Group aims to achieve a ratio of 15% of sustainable mortgage lending towards retail clients in its core markets, including
Tiroler Sparkasse and Sparkasse Hainburg-Bruck-Neusiedl, in 2027. Some of the Group’s credit institutions not included in this
group have set themselves comparable targets. The target is defined in relative terms to the on-balance gross carrying mortgage
amount towards retail clients.
The following table shows the actual figures and targets for sustainable financing. The first line shows the ratio of the gross carrying
amount out of financing business in corporate business sectors that meet sustainable financing criteria, as a percentage of total
receivables in these sectors. The second line shows the ratio of the gross carrying amount out of mortgage loans that meet the
sustainable financing criteria, as a percentage of total receivables in this portfolio.
Sustainable financing – actu als and targets

| Metric | 2024 | 2025 | Target Year | Target (%)
Sustainable corporate financing | % of corporate financing portfolio | 18.0% | 20,9% | 2026 | 25.0%
Sustainable retail mortgages | % of retail mortgage portfolio | 14.9% | 15,6% | 2027 | 15.0%

No changes in the targets, corresponding metrics or the underlying methodologies have been made in 2025 . Sustainable corporate
financings increased from 18.0% in 2024 to 20.9% in 2025 and were mainly driven by real estate financings and renewable energy
projects. The sustainable retail mortgage ratio increased from 14.9% in 2024 to 15.6% in 2025.
The denominator for the sustainable mortgage financing ratio is EUR 51,881 million (2024: EUR 46,853 million). The Retail
business segment in Note 1 amounts to EUR 88,180 million (2024: EUR 81,035 million). The difference results mainly from the fact
that the sustainable finance ratio only covers the core market entities with their mortgage portfolio.
The denominator for the sustainable corporate financing ratio is EUR 83,163 million (EUR 79,399 million). The Corporates
business segment in Note 1 amounts to EUR 88,855 million (2024: EUR 84,201 million). The difference results mainly from the fact
that the sustainable finance ratio only covers the core market entities with their financing business.
The base year for the sustainable corporate financing target is 2022 and for the sustainable retail mortgages 2023.
New corporate sustainable (use-of-proceeds) financing has been supported by a strong contribution from highly energy efficient
commercial real estate financing and renewable energy projects driven mainly by financing of wind parks.
The below table contains new business generated during the reporting period in the corporate segment.
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New s ustainable corporate financing

in EUR million | 2024 | 2025
New corporate sustainable financing, total new business 1 | 5,314.7 | 5,004.0
Construction and real estate | 3,514.0 | 3,515.0
Renewable energy | 917.0 | 732.0
Transportation | 320.0 | 82.0
Other corporate financing 1 | 564.0 | 675.0

1 The target is applicable for all corporate business lines of parent banks in core markets within Erste Group
The measurement of this metrics has not been validated by an external body .
The sustainable corporate financing target and the sustainable mortgages target were set based on guidance collected through
bilateral discussions, conferences, dialogues from supervisory and regulatory authorities, investors, analysts and rating agencies as
well as NGOs, academic and environmental institutions. The experts’ recommendations were subsequently integrated into the
target-setting process. For more details on consideration of interests and view of stakeholders please refer to chapter ‘SBM-2 -
Interests and views of stakeholders’. Monitoring is done on a quarterly basis and discussed at respective Management Board
meetings.
E1-5 – ENERGY CONSUMPTION AND MIX
Energy consumption at approximately 2,500 business locations is individually recorded and evaluated. Annual electricity and
heating consumption values in MWh are collected on an individual address level, broken down by source of electricity and heating
type to be able to split the total energy consumption into fossil, nuclear and renewable sources. As proof documents, supplier
invoices are recorded in the system. The data is not validated by an external body.
The split between energy from fossil, nuclear and renewable sources is according to following logic:
_ Consumption from 100% renewable sources (e.g. purchased green electricity as defined in the contract with the energy supplier)
is automatically allocated to ‘renewables’.
_ Consumption from 100% fossil sources (e.g. oil for heating or diesel for emergency generators) is automatically allocated to
‘fossil’.
_ For mixed sources like national electricity supply or district heating partially from biomass and fossil sources, data contributors
have the option to enter the split as indicated on their energy bills or provided by their suppliers into the system.
_ If data contributors do not have access to this information a national average split is applied.
Measurement uncertainty can result from the fact that the collection of energy consumption is not linked directly to the meters
installed at the office or branch locations but based on the manual input of energy consumption as invoiced by the energy provider.
For some locations, data must be extrapolated if invoices are received after the reporting deadline or to account for different cut-off
periods. For those locations where no consumption values, supported by a supplier invoice, were available, an average
consumption is automatically applied and calculated for the individual location based on the net floor area considering a national
average split of energy source by fossil, nuclear and renewables. Furthermore, energy consumption data from leasing properties
owned and rented out by Erste Group’s leasing companies is not included due to limitations in data availability.
Compared to the previous year the total energy consumption showed a slight decrease in 2025, while the share of energy from
renewable sources remained 56%. The total energy consumption in 2025 amounts to 258,073 MWh.
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Energy consumption and mix

| 2024 | 2025
Fuel consumption from coal and coal products (MWh) | 0.0 | 0.0
Fuel consumption from crude oil and petroleum products (MWh) | 22,051.0 | 21,259.3
Fuel consumption from natural gas (MWh) | 38,429.0 | 37,049.8
Fuel consumption from other fossil sources (MWh) | 0.0 | 0.0
Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources (MWh) | 57,359.0 | 55,300.8
Total fossil energy consumption (MWh) | 117,839.0 | 113,610.0
Share of fossil sources in total energy consumption (%) | 44% | 44%
Consumption from nuclear sources (MWh) | 554.1 | 514.8
Share of consumption from nuclear sources in total energy consumption (%) | 0.2% | 0.2%
Total energy consumption from renewable sources disaggregated by: | 149,386.0 | 143,948.2
– fuel consumption for renewable sources 1 | 486.7 | 355.3
–consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources; | 146,634.7 | 141,106.4
–consumption of self-generated non-fuel renewable energy.² | 2,265.0 | 2,486.5
Share of renewable sources in total energy consumption (%) | 56% | 56%
Total energy consumption (MWh) | 267,779.2 | 258,073.0

1 incl. biomass (also comprising industrial and municipal waste of biologic origin), biofuels, biogas, hydrogen from renew. sources
2 The 2024 amount has been corrected from 7,211 to 2,265.
Additionally, Erste Group calculates greenhouse gas (GHG) emissions related to investment properties that are owned by Erste
Group entities but not directly operated by the Group. However, these emissions are not included in operative emissions
disclosures (E1-5, E1-6), as the future treatment and disclosure approach for these assets is being evaluated.
For transparency purposes, Erste Group nevertheless calculated the energy consumption and mix of these investment properties.
Energy consumption of investment properties falling under scope 1 and 2 was 54,494 MWh.
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E1-6 – GROSS SCOPES 1, 2, 3 AND TOTAL GHG EMISSIONS
TOTAL GREENHOUSE GAS EMISSIONS
Total GHG emissions

| Retrospective | Milestones and target years
| Base year | Base year value | 2024 | 2025 | % Change compared to previous year | 2030 | (2050) | Annual % target / Base year
Scope 1 GHG emissions 1 |  |  |  |  |  |  |  |
Gross scope 1 GHG emissions (tCO 2 e) | 2022 | 20,707 | 16,803 | 14,867 | -12% |  |  |
Percentage of scope 1 GHG emissions from regulated emission trading schemes (%)2 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A
Scope 2 GHG emissions |  |  |  |  |  |  |  |
Gross location-based scope 2 GHG emissions (tCO 2 e) | 2022 | 44,769 | 42,619 | 44,462 | 4% |  |  |
Gross market-based scope 2 GHG emissions (tCO 2 e) | 2022 | 18,742 | 9,212 | 9,330 | 1% |  |  |
Significant scope 3 GHG emissions 3 |  |  |  |  |  |  |  |
Total Gross indirect (scope 3) GHG emissions (tCO 2 e) |  | 32,038,783 | 42,329,822 | 48,862,650 | 15% |  |  |
Purchased goods and services | 2022 | 3,369 | 4,242 | 4,857 | 15% |  |  |
Capital goods | 2022 | 470 | 362 | 582 | 61% |  |  |
Fuel and energy-related activities | 2022 | 9,377 | 7,086 | 6,226 | -12% |  |  |
Upstream transportation and distribution | 2022 | 12,736 | 14,260 | 15,749 | 10% |  |  |
Waste generated in operations | 2022 | 760 | 1,645 | 1,678 | 2% |  |  |
Business travels | 2022 | 7,339 | 10,518 | 9,885 | -6% |  |  |
Employee commuting | 2022 | 23,841 | 25,546 | 25,458 | 0% |  |  |
Downstream leased assets | 2022 | 1,730,209 | 1,913,494 | 1,712,374 | -11% |  |  |
Investments | 2022 | 30,250,683 | 40,352,668 | 47,085,840 | 17% |  |  |
Total GHG emissions |  |  |  |  |  |  |  |
Total GHG emissions (location-based) (tCO 2 e) |  | 32,104,260 | 42,389,244 | 48,921,978 | 15% |  |  |
Total GHG emissions (market-based) (tCO 2 e) |  | 32,078,233 | 42,355,837 | 48,886,847 | 15% |  |  |

1 Note: No biogenic emissions are emitted.
2 Erste Group is not part of any regulated emission trading schemes. Therefore, no scope 1 GHG emissions stem from such schemes.
3 ESRS E1 refers to the GHG protocol Corporate Value Chain (scope 3) Accounting and Reporting Standard, 2011, which defines 15 scope 3 categories of which only material ones should
be disclosed.
The increase in total GHG emissions and GHG intensity per net revenue in 2025 is primarily attributable to enhanced data quality
for scope 3 emissions from investments, specifically the inclusion of downstream emissions reported by debtors.
As indicated in E1-5 Erste Group calculated the emissions attributable to investment properties falling under scope 1 and 2 which
amount to 6,408 tCO 2 e.
With regards to the methodologies and assumptions used for calculating the measured GHG emission please refer to the
subsequent paragraphs concerning operational and financed emissions.
GREENHOUSE GAS INTENSITY PER NET REVENUE
GHG intensity per net revenue

| 2024 | 2025 | Change compared to 2024
Total GHG emissions (location-based) per net revenue (tCO 2 e/EUR million) | 5,589 | 6,794 | 22%
Total GHG emissions (market-based) per net revenue (tCO 2 e/EUR million) | 5,585 | 6,789 | 22%

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RECONCILIATION OF NET REVENUE
Total net revenue amounts to EUR 21,547 million (2024: EUR 23,612 million) and is determined according to the net revenue
definition of the Council Directive 85/635/EEC. It is derived from pre-tax result from continuing operations before personnel
expenses, other administrative expenses, depreciation and amortisation, impairment result from financial instruments, interest
expense, other similar expense and net fee and commission expenses. Net revenue used to calculate GHG intensity amounts to
EUR 7,201 million (2024: EUR 7,584 million). The difference results primarily from items depicted in the table ‘Share of the
portfolio covered by the calculations’.
GHG emissions caused by Erste Group’s operations are calculated in accordance with the GHG Protocol Corporate Accounting and
Reporting Standard. Calculations cover scope 1, scope 2 and scope 3 emissions and each was measured in CO 2 e. The organisational
scope of the calculation refers to all entities in the IFRS scope of consolidation with at least one FTE. To calculate the emissions
from activities emission factors with a GWP100 was used including relevant GHG emissions (CO 2 , CH 4, N 2 O, HFCs, PFCs, SF 6,
NF 3). The results are not validated by an external body.
In case of the various emission categories, Erste Group implemented the following approaches:
Scope 1 and 2
Erste Group gathers scope 1 and scope 2 environmental data as stated in chapter E1-5. For a better understanding of Erste Group’s
methodologies and significant assumptions behind the metrics please refer to chapter E1-5. Scope 2 emissions were calculated by
using a location-based and a market-based method. In case of the location-based method, Grid factors were used to calculate the
emissions. In case of the market-based evaluation approach, Erste Group considered its actual energy composition based on its own
procurement strategy. For conversion to CO 2 equivalents (CO 2 e), emission factors from DBEIS 2025 (Department for Business,
Energy and Industrial Strategy) and the IEA 2024 (International Energy Agency) are used.
In 2025, 27% (2024: 24%) of Erste Group’s total energy consumption was covered by contractual instruments. The purchased
instruments include Energy Attribute Certificates (EECS-GO) for green electricity, covering 50% (2024: 39%) of the total electricity
consumption and biomass, covering 51% (2024: 28%) of total district heating consumption from biomass.
In 2025, due to the growing share of electric cars in the fleet, Erste Group reduced its scope 1 and scope 2 emissions by 7%, from
26,015 tCO 2 e to 24,197 tCO 2 e. 4.2 % of scope 1 data is based on country level estimates, while the corresponding percentage for
scope 2 is 6 %.
Scope 3
The scope 3 categories ‘upstream leased assets’, ‘downstream transportation’, ‘processing of sold products’, ‘use of sold products’,
‘end-of-life treatment of sold products’ and ‘franchises’ are considered immaterial due to the magnitude of GHG emissions and are
not disclosed in the total GHG emissions table.
Scope 3 category 1 - Purchased goods and services
For scope 3 category 1 a spend-based method was used. Emissions for goods and services were estimated by collecting data on the
economic value of goods (spend in EUR) and services purchased by Erste Group and multiplying it by emission factors originating
from an environmentally extended input-output analysis (EEIOA; exiobase 2024). Each purchase, based on customer country, was
mapped with the corresponding emission category from exiobase and multiplied accordingly.
Scope 3 category 2 - Capital goods
For scope 3 category 2 a spend-based method was used. Just like for scope 3 category 1, emissions for capital goods were estimated
by collecting data on the economic value (spend in EURO) of capital goods purchased by and multiplying it by emission factors
originating from an EEIOA (exiobase 2024). Each purchase, based on customer country, was mapped with the corresponding
emission category from exiobase and multiplied accordingly.
S cope 3 category 3 - Fuel-and-energy-related activities (not included in scope 1 or 2)
For scope 3 category 3 the average-data method was used. The emissions were estimated by using secondary emission factors
(DBEIS, 2024) for upstream emissions per unit of consumption (T&D and WTT). The data for purchased energy and fuel is actual
supplier data, which also serves as the basis for the scope 1 and 2 calculations.
Scope 3 category 4 - Upstream transportation and distribution
For scope 3 category 4 a spend-based method was used. Just like for scope 3 category 1 and scope 3 category 2, emissions for
upstream transportation and distribution were estimated by collecting data on the economic value (spend in EUR) of transportation
and distribution services purchased by Erste Group and multiplying it by emission factors originating from an environmentally
107
extended input-output-analysis (exiobase, 2024). Each purchase, based on customer country, was mapped with the corresponding
emission category from exiobase and multiplied accordingly.
Scope 3 category 5 - Waste generated in operations
For scope 3 category 5 a waste-type-specific method was used if primary data was available for different waste types in countries.
For all primary data available, waste descriptions from Erste Group countries were mapped to waste activities and waste types.
Waste types were then matched to waste treatment options based on ‘GHG reporting by department of business, Energy and
Industrial strategy UK’ (defra 2024). After that, the emissions for the waste types were multiplied by emission factors based on the
waste treatment options provided by defra. The waste treatment splits were set based on research and municipal waste treatment
data from OECD and European Environment Agency.
If a country had no primary data at all, a conservative approach with 100% municipal waste was assumed. To calculate emissions,
municipal waste splits per countries as well as defra emission factors were used.
Scope 3 category 6 - Business travel
For scope 3 category 6 the distance-based method was applied. The distance and mode of business trips are collected and partially
extrapolated when no primary data was available. For the extrapolation country average distance travelled by mode of
transportation based on actual data entered in the system was used. The appropriate emission factors (Federal Environment
Agency, 2025), for each mode of transportation used were applied.
Scope 3 category 7 - Employee commuting
In 2024, a survey was performed for scope 3 category 7 among Erste Group employees in selected countries to assess the average
distance travelled and mode of transportation used by employees to travel to their place of work. The 2025 emission calculation is
based on survey results from 29 entities done in 2024. In total, approximately 50% of FTEs were surveyed with an average
participation rate per entity of over 70%. In addition, the number of working days per country, with consideration to vacation days,
average sick days and home office rates, was determined. To do this, Erste Group People & Culture department provided the
necessary information for vacation days, the average sick days reported per country of last year’s non-financial report as well as the
home office rate. The appropriate emission factors for each mode of transportation used were applied (Federal Environment
Agency, 2024) and multiplied accordingly.
Measurement uncertainty can result especially where extrapolations are made in calculating emissions. This is especially relevant
for emission categories where actual data availability is limited such as ‘waste generated in operations’ and ‘employee commuting’.
In the process for preparation and presentation of sustainability information in 2025, Erste Group assessed the ESRS-related
requirements on the reporting on Total GHG emissions, to provide information of the group’s GHG emissions occurring from its
upstream value chain.
In 2025 Erste Group’s total operational scope 3 emissions increased due to enhancements in data quality with the biggest increase
in emission from employee commuting. The calculation of scope 3 categories 1, 2 and 4 emissions is to 21% based on estimates. For
categories 3 and 6 emissions the share of estimates is 12% and for category 5 22%. The calculation of scope 3 category 7 is 100%
based on estimates as results from the employee surveys performed were extrapolated using the number of FTEs.
Scope 3 Category 13 and 15 Financed Emissions
Financed emissions stood at 48.8 (2024: 42.3) million tonnes CO 2 e and include ‘Investments and Downstream Leased Assets’ in
table ‘Financed Emissions’. Financed emission intensity stood at 246 tC O 2 e/EUR million (prior year: 222 tCO 2 e/EUR million),
which is a year-on-year increase of 24 tCO 2 e/EUR millio n. The increase in intensity can be mainly explained by data quality
improvements in scope 3, resulting from the fact that more downstream scope 3 emissions are included in the disclosure this year
compared to last year. In line with that, scope 3 data quality score improved from 3.9 to 3.7.
The scope 1 and 2 financed emissions decreased from 14.6 million tonnes CO 2 e to 13.5 million tonnes CO 2 e despite increasing
exposure development, mainly coming fro m Private Customers, Healthcare and Services and Real Estate. The largest declines in
financed Scope 1 and 2 emissions occurred in Private Customers and Real Estate, in line with Erste Group’s decarbonization
targets. Following GHG protocol, Ers te Group reports financed biogenic emissions separately from financed emissions, which
amount at 331 tonnes CO 2 e.
Overall, the calculation of 2025 financed emis sions covers 60.1% of the credit exposure and increased slightly compared to last year
(59.5%). The remaining uncovered exposure results from the fact that selected portfolios (e.g., exposure to central banks and credit
institutions, off-balance sheet items and consumer loans) are not part of the current financed emission calculation. Erste Group
applies the GHG Protocol to determine the minimum boundaries of its financed emission calculation.
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Share of the portfolio covered by the calculations

| Dec 24 | Dec 25
| Credit exposure | covered by financed emissions | Credit exposure | covered by financed emissions
| in EUR million | in EUR million | % | in EUR million | in EUR million | %
Off-balance sheet exposures | 73,137 | 0 | 0.0% | 79,557 | 0 | 0.0%
Central banks | 21,208 | 0 | 0.0% | 15,308 | 0 | 0.0%
Central governments | 63,310 | 46,817 | 73.9% | 71,404 | 52,047 | 72.9%
Credit institutions | 24,139 | 0 | 0.0% | 20,871 | 0 | 0.0%
Other financial corporations | 9,147 | 6,466 | 70.7% | 8,976 | 6,727 | 74.9%
Non-financial corporations | 103,848 | 101,824 | 98.1% | 108,790 | 107,169 | 98.5%
Households | 103,978 | 82,121 | 79.0% | 111,906 | 84,371 | 75.4%
Total | 398,766 | 237,228 | 59.5% | 416,812 | 250,315 | 60.1%

Erste Group uses the PCAF methodology (version 2022) to account for its financed emissions (scope 3 emissions category 15
‘Investments’). As this standard is in conformity with the internationally recognised GHG Protocol (Corporate Value Chain (scope
3) Accounting and Reporting Standard) emissions are calculated for all the seven GHGs that are listed in the Kyoto Protocol. These
are carbon dioxide (CO 2), methane (CH 4), nitrous oxide (N 2 O) and the fluorinated gases (F-gases): hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs) and sulphur hexafluoride (SF 6) as well as nitrogen trifluoride (NF 3 ).
For details of the methodology including assumptions see the ‘Methodology’ section below. Erste Group includes the following
PCAF-defined asset classes in its calculatio n: corporate bonds and listed equity, business loans and unlisted equity, pro ject finance,
commercial real estate finance and mortgages. Additionally, Erste Group calculates emissions of the PCAF-defined asset class
‘sovereign debt’ and reports them in a separate table. The leasing business (category 13 ‘Downstream Leased Assets’) is included in
Erste Group scope 3 emissions. This category is calculated using the same methodology as for category 15 and is separately shown
as a sub-item. For simplicity and following market practice, the report refers to the PCAF-defined asset class ‘corporate bond and
listed equity’ as ‘corporate bond’ and the asset class ‘business loan and unlisted equity’ as ‘business loan’.
Weighted Average Carbon Intensity (WACI) sets the client emissions in relation to client revenues, weighted by the share of the
respective client in the total portfolio. The WACI can only be calculated for in the PCAF-asset classes business loans, corporate
bonds and project finance. For the real estate object related financed emission calculation the metric is not meaningful, as the
calculation is dependent on the financed object and not the client emissions. The portfolio WACI stands at 719 gCO 2 e/EUR
revenue (2 024: 664 g CO 2 e/EUR revenue). Scope 1 and 2 WACI decreased from 252 gCO 2 e/EUR revenue (2024) to 220 gCO 2 e/EUR
revenue (2025) in line with the decrease in Scope 1 and 2 absolute financed missions and emission intensity. In comparison to that,
in Scope 3 the WACI increased from 412 gCO 2 e/EUR revenue (2024) to 499 gCO 2 e/EUR revenue (2025) due to increased Scope 3
Downstream Emission availability. The WACI for 2024 has been recalculated due to a significant portfolio shift between Business
Loans and Real Estate exposures, as well as methodological improvements in the allocation of WACI between Scope 1, 2 and Scope
3 emissions.
One out of the seven currently existing PCAF calculation methodologies – motor vehicle loans – have not been applied yet. The
motor vehicles asset class has not been implemented as such because of the low weight of this portfolio. The financed emissions of
this portfolio are currently calculated by means of the methodology used for business loans.
Erste Group would restate financed emissions of the base year and the previous year in case:
_ A significant methodological change leads to a deviation of +/-5 % of financed emissions in the reporting year vs. base year.
_ A detected error leads to a deviation of +/- 5 % of financed emissions in the reporting year vs. base year.
There was no requirement to restate emissions this year.
Methodology Business Loan, Corporate Bonds and Project Finance
In the case of business loans, Erste Group follows the PCAF methodology by relying either on emissions reported by the corporate
customers or emission factors drawn from the PCAF database or on its own approach for loans to large real estate managing
companies.
In 2025, Erste Group refined its PCAF asset class allocation methodology, enabling the reclassification of EUR 13 billion from
general-purpose calculations (business loans) to specific-purpose calculations (commercial real estate). This shift was made
possible by aligning the PCAF definition of commercial real estate with Erste Group’s internal Group Real Estate Financing Policy.
Consequently, Erste Group discontinued the previous approach of applying commercial real estate intensity factors to real estate
companies classified under NACE L68. The impact of the reclassification is a reduction in financed emissions of –0.7 million tonnes
CO₂e, largely attributable to Scope 3 emissions. This reflects the different methodological treatment, as Scope 3 emissions have been
included for Business Loans, but are not included for Commercial Real Estate exposures.
109
Erste Group is deviating from PCAF standard for listed companies in the business loan and corporate bond modules. It applies the
balance sheet value instead of the Enterprise Value including Cash (EVIC) as a denominator to calculate the attribution factor for
listed companies, as using EVIC might lead to higher volatilities only driven by capital market movements, e.g., in a market stress
situation its financed emissions would increase, which doesn’t need to be directly related to movements in the physical production
of the company. This approach is in line with Erste Group’s peers, due to the limitation of the metric.
In case of project finance, Erste Group assumes that renewable energy projects (wind, solar, geothermal and hydropower) have an
emission factor for scope 1 and 2 of zero. Otherwise in the absence of financing purpose and specific emission factors, project
finance follows the calculation methodology for the business loans asset class by using either the emissions reported by the
businesses or estimates based on financial metrics and emission factors drawn from the PCAF database.
Erste Group keeps using the base year 2015 PCAF emission factors (Exiobase database) for the 2025 reporting to ensure
comparability with the figures of the previous year, which were also used as a basis for target setting. The initial PCAF version is
based on Exiobase 2015 data base and was the most up-to-date version until March 2023, being replaced by Exiobase 2019 data
base. Keeping for 2025 the Exiobase 2015 data base is also in line with the user briefing published by PCAF, providing as a
recommendation to apply the same economic emission factor dataset for longer periods of time (minimum 3 years). For scope 3
PCAF Emission factors are not containing Downstream Emissions. In October 2025, PCAF released a new database version based
on the Comprehensive Environmental Data Archive (CEDA), which Erste Group is currently reviewing. Erste Group plans to begin
using the CEDA database in 2026. At present, switching to CEDA would not result in an increase in reported emissions.
Methodology Commercial Real Estate and Mortgages
With regards to commercial real estate and mortgages, the calculation of financed emissions is based on building data, which in a
first step is used to calculate the emissions of a financed asset. Depending on data availability, Erste Group calculates emissions
from buildings in the following order (which does not reflect the data quality score):
1. CO 2 e emissions as per energy performance certificate
2. Primary energy demand (PED) as per energy performance certificate
3. PED class as per energy performance certificate
4. PED class with advanced EPC proxy estimation approach
5. PED class based on the year of construction
6. PED class based on the national average drawn from the PCAF European building emission factor database as of 2025.
Erste Group enhanced the real estate based financed emissions calculation methodology by EPC proxy estimation approach. This
approach applies advanced methodologies (e.g., machine-learning algorithm) to derive EPC labels from collateral data or other
relevant information. In 2025, the identification framework for financed real estate exposures was enhanced. The introduction of a
financed‑property flag resulted in the exclusion of specific exposures, while real estate assets without buildings were explicitly
identified and classified as vacant land. Financing of vacant land was therefore treated separately and assigned zero financed
emissions.
For calculation 3 to 6, average primary energy demand is based on the primary energy demand class recorded in the PCAF
European building database as of 2025. Once primary energy demand has been determined, it has to be converted into emissions as
input for calculation 2 to 6. If primary energy demand is not specified in local legislation or has not been historically recorded, final
energy demand is used as an alternative. The year selected as the national average in the PCAF European building emission factor
database was 2020, in line with a conservative methodology for the older buildings. This approach is used when no better data is
available, which is most often the case for older properties.
Erste Group decided to use emission conversion factors based on statistical data on energy mixes and emission intensities. These
factors are also a key component in the development of scenarios for the future in the decarbonisation model. In addition,
conversion factors obtained in this manner come with the advantage, that where in-house portfolio data are available, national
averages may be substituted by the relevant portfolio data (e.g. if the gas portion in the portfolio is below/above the national
average). Moreover, this internally developed emission conversion factor enables Erste Group to apply values tailored to the specific
heating medium used, thereby aligning with Erste Group’s financed data rather than relying on national averages. Main data
sources for the energy mixes and electricity-based emission intensities of the core countries were Eurostat and Electricity map and
for the heating-based emission intensities the German Umweltbundesamt (UBA). Plausible local data sources were as well taken
into consideration, particularly for non-EU countries.
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Financed emissions

| Credit exposure | Credit exposure covered by emission calculation | Financed emissions, thousand tCO 2 e 1, 2 | Emission intensity in tCO 2 e/in EUR million | Weighted data quality (High=1, Low=5) | Weighted average carbon intensity (WACI) in gCO 2 e/EUR revenue
| in EUR million | in EUR million | Scope 1 and 2 | Scope 3 2,3 | Scope 1 and 2 | Scope 3 | Scope 1 and 2 | Scope 3 | Scope 1 and 2 | Scope 3
2025 |  |  |  |  |  |  |  |  |  |
per PCAF asset class |  |  |  |  |  |  |  |  |  |
Corporate bonds | — | 2,265 | 413 | 840 | 182 | 371 | 3.1 | 3.4 | 275 | 601
Business loans | — | 71,139 | 9,400 | 33,767 | 132 | 475 | 3.5 | 3.7 | 175 | 494
Project finance | — | 3,665 | 347 | 649 | 95 | 177 | 2.8 | 3.7 | 1,056 | 542
Mortgages | — | 76,564 | 2,495 | — | 33 | — | 3.7 | — | — | —
Commercial real estate | — | 44,634 | 849 | — | 19 | — | 3.4 | — | — | —
Total | 416,812 | 198,266 | 13,504 | 35,256 | 68 | 178 | 3.5 | 3.7 | 220 | 499
per sector |  |  |  |  |  |  |  |  |  |
Natural resources & commodities | 13,932 | 9,591 | 2,968 | 4,590 | 309 | 479 | 3.5 | 3.7 | 365 | 504
Energy | 20,169 | 8,742 | 2,978 | 5,871 | 341 | 672 | 2.7 | 3.3 | 1,038 | 876
Construction | 20,177 | 8,692 | 1,426 | 2,839 | 164 | 327 | 3.7 | 3.9 | 175 | 324
Automotive | 8,774 | 5,797 | 255 | 4,434 | 44 | 765 | 3.2 | 3.2 | 43 | 725
Cyclical consumer goods | 8,807 | 5,597 | 443 | 1,400 | 79 | 250 | 3.6 | 3.6 | 80 | 234
Non-cyclical consumer goods | 11,909 | 7,726 | 901 | 4,333 | 117 | 561 | 3.3 | 3.5 | 97 | 443
Machinery | 8,475 | 4,298 | 175 | 6,183 | 41 | 1,439 | 3.5 | 3.8 | 46 | 2,017
Transportation | 10,497 | 5,186 | 406 | 1,252 | 78 | 241 | 3.5 | 3.7 | 117 | 279
TMT | 8,231 | 4,700 | 157 | 1,173 | 33 | 250 | 3.2 | 3.2 | 53 | 327
Healthcare & Services | 14,554 | 9,736 | 414 | 1,754 | 43 | 180 | 3.8 | 4.0 | 71 | 224
Hotels and Leisure | 10,843 | 8,644 | 264 | 695 | 30 | 80 | 3.7 | 3.9 | 37 | 197
Real estate | 49,433 | 43,510 | 747 | 193 | 17 | 4 | 3.4 | 4.1 | 38 | 145
Public sector | 84,393 | 152 | 2 | 19 | 13 | 125 | 2.8 | 2.7 | 32 | 829
Financial institutions | 29,965 | 2,901 | 49 | 423 | 17 | 146 | 3.7 | 3.8 | 31 | 227
Private customers | 111,461 | 72,992 | 2,319 | 96 | 32 | 1 | 3.7 | 5.0 | 15 | 88
Other sectors | 5,191 | 3 | 1 | 1 | 163 | 204 | 4.0 | 4.0 | 117 | 304
Total | 416,812 | 198,266 | 13,504 | 35,256 | 68 | 178 | 3.5 | 3.7 | 220 | 499
of which category 13 (Downstream Leased Assets) |  | 4,104 | 630 | 1,078 | 153 | 263 | 4.6 | 4.7 |  |
according to risk countries | — |  |  |  |  |  |  |  |  |
Austria | — | 93,922 | 4,342 | 10,900 | 46 | 116 | 3.6 | 3.8 | 139 | 433
Czechia | — | 39,222 | 3,413 | 4,548 | 87 | 116 | 3.7 | 3.7 | 221 | 349
Romania | — | 5,746 | 777 | 4,595 | 135 | 800 | 3.2 | 3.3 | 367 | 1,120
Slovakia | — | 10,932 | 822 | 3,478 | 75 | 318 | 3.4 | 3.7 | 222 | 551
Germany | — | 18,223 | 1,262 | 1,731 | 69 | 95 | 3.6 | 3.8 | 423 | 324
Croatia | — | 7,187 | 905 | 1,510 | 126 | 210 | 3.4 | 3.5 | 304 | 431
United States | — | 2,032 | 315 | 1,245 | 155 | 613 | 2.8 | 3.3 | 218 | 774
Hungary | — | 5,267 | 417 | 1,078 | 79 | 205 | 3.3 | 3.6 | 179 | 514
Netherlands | — | 1,325 | 55 | 1,247 | 42 | 941 | 3.0 | 2.8 | 85 | 916
Singapore | — | 285 | 17 | 951 | 60 | 3,341 | 2.4 | 2.4 | 39 | 1,426
Remaining Countries | — | 14,125 | 1,179 | 3,973 | 83 | 281 | 3.3 | 3.5 | 316 | 636
Total | 416,812 | 198,266 | 13,504 | 35,256 | 68 | 178 | 3.5 | 3.7 | 220 | 499

1 For details on the calculation of financed emissions see 'Methodology'.
2 Financed emissions also include category 13 ‘Downstream Leased Assets’ of Erste Group Scope 3 emissions, which are shown separately as a sub-category.
3 Where Erste Group uses reported emissions for calculating scope 3 emissions, this includes – if both are reported – both upstream and downstream emissions. Where Erste Group uses
emissions with national emission factors from the PCAF database, only Scope 3 upstream emissions are accounted for due to data availability. The data quality score for Scope 3
emissions is therefore reported separately.
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| Credit exposure | Credit exposure covered by emission calculation | Financed emissions, thousand tCO2e 1, 2 | Emission intensity in tCO 2 e/in EUR million | Weighted data quality (High=1, Low=5) | Weighted average carbon intensity (WACI) in gCO 2 e/EUR revenue
| in EUR million | in EUR million | Scope 1 and 2 | Scope 3 2,3 | Scope 1 and 2 | Scope 3 | Scope 1, 2 and 3 | Scope 3 | Scope 1 and 2 | Scope 3
2024 |  |  |  |  |  |  |  |  |  |
per PCAF asset class |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | 2,315 | 470 | 738 |  | 522 | 3.5 | 3.6 | 344 | 540
Business loans |  | 80,587 | 9,930 | 26,355 |  | 450 | 3.9 | 3.9 | 147 | 389
Project finance |  | 3,201 | 352 | 618 |  | 303 | 3.8 | 3.8 | 579 | 1,019
Mortgages |  | 74,765 | 3,208 | 0 |  | 43 | 3.8 | 0.0 | 0 | 0
Commercial real estate |  | 29,549 | 595 | 0 |  | 20 | 3.5 | 0.0 | 0 | 0
Total | 398,766 | 190,417 | 14,554 | 27,712 |  | 222 | 3.8 | 3.9 | 168 | 417
per sector |  |  |  |  |  |  |  |  |  |
Natural resources & commodities | 13,951 | 9,402 | 3,080 | 5,545 |  | 917 | 3.6 | 3.6 | 333 | 645
Energy | 18,499 | 7,705 | 3,116 | 4,193 |  | 948 | 3.2 | 3.3 | 742 | 1,000
Construction | 18,860 | 8,441 | 1,663 | 2,763 |  | 524 | 3.9 | 3.9 | 186 | 314
Automotive | 8,576 | 5,882 | 248 | 2,509 |  | 469 | 3.3 | 3.3 | 51 | 528
Cyclical consumer goods | 8,465 | 5,606 | 471 | 1,333 |  | 322 | 3.6 | 3.6 | 70 | 204
Non-cyclical consumer goods | 11,630 | 7,491 | 681 | 3,114 |  | 507 | 3.5 | 3.7 | 152 | 708
Machinery | 7,538 | 3,890 | 182 | 3,238 |  | 879 | 3.8 | 3.9 | 48 | 857
Transportation | 10,375 | 4,820 | 456 | 1,150 |  | 333 | 3.8 | 3.9 | 109 | 276
TMT | 7,949 | 4,528 | 170 | 725 |  | 198 | 3.3 | 3.3 | 67 | 296
Healthcare & Services | 12,190 | 8,311 | 332 | 1,287 |  | 195 | 4.0 | 4.1 | 68 | 294
Hotels and Leisure | 10,246 | 8,316 | 279 | 699 |  | 118 | 3.9 | 4.0 | 45 | 197
Real estate | 47,729 | 42,408 | 977 | 745 |  | 41 | 4.0 | 4.8 | 66 | 105
Public sector | 86,830 | 101 | 1 | 16 |  | 173 | 2.7 | 2.4 | 35 | 940
Financial institutions | 33,192 | 2,555 | 37 | 294 |  | 130 | 3.9 | 4.0 | 17 | 148
Private customers | 102,416 | 70,954 | 2,862 | 99 |  | 42 | 3.8 | 4.9 | 15 | 88
Other sectors | 318 | 5 | 0 | 1 |  | 213 | 4.1 | 4.2 | 68 | 291
Total | 398,766 | 190,417 | 14,554 | 27,712 |  | 222 | 3.8 | 3.9 | 168 | 417
of which category 13 (Downstream Leased Assets) |  | 4,085 | 731 | 1,183 |  | 468 | 4.7 | 4.7 |  |
according to risk countries |  |  |  |  |  |  |  |  |  |
Austria |  | 92,369 | 4,769 | 8,429 |  | 143 | 3.9 | 4.1 | 118 | 257
Czechia |  | 36,891 | 3,575 | 4,379 |  | 216 | 3.9 | 3.9 | 201 | 375
Romania |  | 10,592 | 1,010 | 3,107 |  | 389 | 3.5 | 3.8 | 135 | 595
Slovakia |  | 17,462 | 1,562 | 1,716 |  | 188 | 3.7 | 3.8 | 149 | 333
Germany |  | 5,166 | 508 | 2,001 |  | 486 | 3.6 | 3.7 | 149 | 634
Croatia |  | 6,335 | 984 | 1,094 |  | 328 | 3.7 | 3.7 | 283 | 359
United States |  | 2,073 | 293 | 1,190 |  | 715 | 3.1 | 3.4 | 476 | 1,938
Hungary |  | 5,111 | 472 | 980 |  | 284 | 3.4 | 3.5 | 155 | 521
Netherlands |  | 1,039 | 50 | 1,205 |  | 1,207 | 3.1 | 3.2 | 50 | 1,270
Singapore |  | 197 | 25 | 714 |  | 3,748 | 2.1 | 2.0 | 68 | 1,961
Remaining Countries |  | 13,182 | 1,306 | 2,897 |  | 319 | 3.6 | 3.7 | 237 | 639
Total | 398,766 | 190,417 | 14,554 | 27,712 |  | 222 | 3.8 | 3.9 | 168 | 417

1 For details on the calculation of financed emissions see 'Methodology'.
2 Financed emissions also include category 13 ‘Downstream Leased Assets’ of Erste Group Scope 3 emissions, which are shown separately as a sub-category.
3 Where Erste Group uses reported emissions for calculating scope 3 emissions, this includes – if both are reported – both upstream and downstream emissions. Where Erste Group uses
emissions with national emission factors from the PCAF database, only Scope 3 upstream emissions are accounted for due to data availability. The data quality score for Scope 3
emissions is therefore reported separately.
Detailed results by sector
Erste Group used its in-house customer segmentation by sectors for the purpose of PCAF measuring and disclosure of financed
emissions.
The sector posting the highest financed emission intensity for scope 1 and 2 of 341 tCO 2 e/EUR million, was the Energy industry,
with a credit exposure covered in the emission calculation of EUR 8.7 billion.
The sector posting the highest financed emission intensity (scope 1, 2 and 3), of 1,480 tCO 2 e/EUR million, was the Machinery
industry, with a credit exposure covered in the emission calculation of EUR 4.3 billion.
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Detailed results by country
Financed emissions are broken down by customers country of risk. Because of its business model, the country with the highest
absolute level of financed emissions (15.2 million tCO 2 e) is Austria, which at the same time has the lowest level of emission
intensity at 162 gCO 2 e/EUR. The country with the highest emission intensity is Singapore at 3,401 tCO 2 e/EUR million, with
absolute emissions coming to 1.0 million tCO 2 e.
Detailed results by data quality
Erste Group relies on the PCAF methodology for scoring data quality (data availability), where the scale ranges from a score of
DQ 1 (= highest data quality) to DQ 5 (= lowest data quality). The data quality of the calculations reflects the high dependence on
sectoral emission factors, as relevant customer information was not widely available. Reported emissions in the corporate
customers segment are currently not distinguished between verified and non-verified and therefore the DQ 2 is applied, following a
conservative approach.
The weighted average data quality of the quantified portfolio was 3.6 as of 2025 reporting and thus improved versus the previous
year ( 2024: 3.8). The table shows a breakdown of financed emissions distinguished by data availability (energy performance
certificates for the real estate sector and reported emissions for the other PCAF asset classes).
Erste Group is disclosing financed emissions from clients reported emissions or derived from an available energy performance
certificate separately from financed emissions where it used PCAF factors to calculate financed emissions. The share of emissions
derived from reported emissions or an available energy performance certificate amounts to 38% (2024 29%) of the credit exposure
(covered by the emission calculations) and 52% (2024: 43%) of financed emission s. The significant improvement in data quality is
driven by higher availability of Energy Performance Certificates, improved identification of vacant land and reclassification of
Exposure from Business Loan to Real Estate Calculation. The exposure share is higher for the real estate sector, even though it
must be noted that the energy performance certificate – depending on country-specific standards – partially covers only the
(primary) energy demand and not the level of emissions.
For corporate segments, the emission intensity (tCO 2 e/EUR million) is lower where Erste Group uses PCAF factors to calculate
emissions. For scope 3 this is mainly driven by the fact that PCAF emission factors only contain upstream emissions. Also, the
scope 1 and 2 emission intensity for corporate clients are higher in the reported emissions segment. One of the drivers can be
unequal industry distribution as clients in carbon intensive sectors are more likely subject of emission disclosure requirements.
Financed emissions by data quality

| Credit exposure covered by calculated emissions | Financed emissions, thousand tCO 2 e | Emission intensity tCO 2 e/in EUR million | Weighted data quality (High = 1, Low = 5)
| in EUR million | Scope 1 and  2 | Scope 3 | Scope 1 and 2 | Scope 3 | Scope 1 and 2 | Scope 3
Total 2025 | 198,266 | 13,504 | 35,256 | 68 | 178 | 3.5 | 3.7
Reported emissions / energy performance certificate available (by PCAF asset class) |  |  |  |  |  |  |
Corporate bonds 1 | 1,010 | 198 | 631 | 196 | 625 | 2.0 | 2.0
Business loans 1 | 15,313 | 2,179 | 21,148 | 142 | 1,381 | 2.0 | 2.0
Project finance 1 | 661 | 5 | 330 | 7 | 500 | 2.0 | 2.0
Mortgages 2 | 31,573 | 517 | — | 16 | — | 3.0 | —
Commercial real estate 2 | 27,197 | 391 | — | 14 | — | 2.9 | —
Total | 75,755 | 3,290 | 22,110 | 43 | 292 | 2.7 | 2.0
No Reported emissions / no energy performance certificate available (by PCAF asset class) |  |  |  |  |  |  |
Corporate bonds | 1,255 | 214 | 209 | 171 | 166 | 3.9 | 4.5
Business loans | 55,826 | 7,221 | 12,619 | 129 | 226 | 4.0 | 4.1
Project finance | 3,003 | 343 | 318 | 114 | 106 | 2.9 | 4.0
Mortgages | 44,991 | 1,978 | — | 44 | — | 4.2 | —
Commercial real estate | 17,436 | 459 | — | 26 | — | 4.1 | —
Total | 122,511 | 10,215 | 13,146 | 83 | 107 | 4.0 | 4.1

1 Availability of reported emissions for corporate bonds / business loans : reported emissions are available for all scopes that are of relevance for calculating financed emissions (equivalent
to DQ 2).
2 Availability of energy performance certificate for mortgages and commercial real estate: energy performance certificate is available and has been used for calculating financed emissions
(equivalent to DQ 3).
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| Credit exposure covered by calculated emissions | Financed emissions, thousand tCO 2 e | Emission intensity tCO 2 e/in EUR million | Weighted data quality (High = 1, Low = 5)
| in EUR million | Scope 1 and  2 | Scope 3 | Scope 1 and 2 | Scope 3 | Scope 1, 2 and 3 | Scope 3
Total 2024 | 190,417 | 14,554 | 27,712 | 76 | 322 | 3.8 | 3.9
Reported emissions / energy performance certificate available (by PCAF asset class) |  |  |  |  |  |  |
Corporate bonds 1 | 802 | 233 | 514 | 290 | 641 | 2.0 | 2.0
Business loans 1 | 14,288 | 2,060 | 14,030 | 144 | 982 | 2.0 | 2.0
Project finance 1 | 446 | 1 | 277 | 2 | 622 | 2.0 | 2.0
Mortgages 2 | 24,014 | 578 |  | 24 |  | 3.0 |
Commercial real estate 2 | 16,169 | 281 |  | 17 |  | 3.0 |
Total | 55,720 | 3,153 | 14,821 | 57 | 954 | 2.7 | 2.0
No Reported emissions / no energy performance certificate available (by PCAF asset class) |  |  |  |  |  |  |
Corporate bonds | 1,512 | 237 | 224 | 157 | 148 | 4.3 | 4.5
Business loans | 66,299 | 7,870 | 12,326 | 119 | 186 | 4.3 | 4.4
Project finance | 2,755 | 351 | 341 | 127 | 124 | 4.0 | 4.0
Mortgages | 50,751 | 2,630 |  | 52 |  | 4.2 |
Commercial real estate | 13,380 | 313 |  | 23 |  | 4.2 |
Total | 134,697 | 11,401 | 12,891 | 85 | 183 | 4.2 | 4.3

1 Availability of reported emissions for corporate bonds / business loans : reported emissions are available for all scopes that are of relevance for calculating financed emissions (equivalent
to DQ 2).
2 Availability of energy performance certificate for mortgages and commercial real estate: energy performance certificate is available and has been used for calculating financed emissions
(equivalent to DQ 3).
Sovereign emissions
Erste Group’s sovereig n emissions stand at 10.9 million tCO 2 e including land use, land change and forestry (LULUCF) and 11.9
million tCO 2 e excluding LULUCF. The decision to report them separately from other financed emissions is driven by the fact that
sovereign scope 1 emissions include th e whole production of a country, thus leading to double counting of financed emissions.
Additionally, sovereign emissions development should follow countries’ national transition plans, decreasing till 2050 according to
the governmentals’ committments. For the calculation of Sovereign emissions, Erste Group applies the PCAF database as of
September 2025. The database provides ma inly 2021 figures, e xpressed in million USD. For the calculation of sovereign emissions,
the USD/EUR FX rate of the respective emission factor year is applied.

| Credit exposure covered by emissions calculation | Financed emissions, thousand tCO 2 e | Emission intensity tCO 2 e/ EUR million | Weighted data quality
Country | In EUR million | Scope 1 incl. LULUCF 1 | Scope 1 excl. LULUCF 1 | Scope 1 incl. LULUCF 1 | Scope 1 excl. LULUCF 1 | Scope 1 2
2025 |  |  |  |  |  |
Czechia | 16,254 | 4,867 | 4,546 | 299 | 280 | 1.0
Romania | 8,066 | 871 | 1,520 | 108 | 188 | 1.0
Slovakia | 5,803 | 1,173 | 1,441 | 202 | 248 | 1.0
Austria | 8,239 | 1,166 | 1,347 | 142 | 164 | 1.0
United States | 3,082 | 557 | 628 | 181 | 204 | 1.0
Remaining Countries | 10,600 | 2,237 | 2,443 | 211 | 231 | 1.4
Total | 52,044 | 10,872 | 11,925 | 209 | 229 | 1.1

1 Land use, land change and forestry (LULUCF)
2 no change between incl. and excl. LULUCF
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| Credit exposure covered by emissions calculation | Financed emissions, thousand tCO 2 e | Emission intensity tCO 2 e/EUR million | Weighted data quality
Country | In EUR million | Scope 1 incl. LULUCF 1 | Scope 1 excl. LULUCF 1 | Scope 1 incl. LULUCF 1 | Scope 1 excl. LULUCF 1 | Scope 1 2
2024 |  |  |  |  |  |
Czechia | 14,757 | 4,419 | 4,127 | 299 | 280 | 1.0
Romania | 7,775 | 840 | 1,465 | 108 | 188 | 1.0
Slovakia | 5,596 | 1,131 | 1,389 | 202 | 248 | 1.0
Austria | 6,029 | 854 | 986 | 142 | 164 | 1.0
United States | 2,223 | 603 | 685 | 271 | 308 | 1.0
Remaining Countries | 10,438 | 2,446 | 2,570 | 234 | 246 | 1.4
Total | 46,818 | 10,292 | 11,222 | 220 | 240 | 1.1

1 Land use, land change and forestry (LULUCF)
2 no change between incl. and excl. LULUCF
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Biodiversity and ecosystems
This section focuses on Erste Group’s impact on biodiversity and ecosystems. Biodiversity or biological diversity can be understood
as the variety of life and refers to the uniqueness of all living things (Federal Ministry for Agriculture and Forestry, Climate and
Environmental Protection, Regions and Water Management). Biodiversity loss can lead to the extinction of species and the
depletion of genetic variations. This can have a far-reaching impact on the food chain and the dynamics of ecosystems, on which
humanity thrives.
Erste Group is committed to assess and disclose its biodiversity-related impacts, dependencies, risks and opportunities. Erste Group
recognises the indirect impact its investments can have on biodiversity through the identified subtopic soil sealing.
E4 SBM-3 – MATERIAL IMPACT RELATED TO BIODIVERSITY AND ECOSYSTEMS

Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
E4-Soil sealing | Negative impact | Financing real estate and public infrastructure projects can have a negative impact on biodiversity as soil is sealed and land is degraded, thus causing increased flooding risks, climate change exacerbation and possible health issues caused by decreased air and water quality. | Portfolio | All time horizons

SOIL SEALING
The EU Soil Strategy for 2030 emphasises that soil sealing is highly relevant for Europe and the region Erste Group is active in. Soil
sealing has substantial negative impacts on the environment and society, including the loss of essential ecosystem services,
increased flood risks and more intense urban heat island effects. Additionally, soil sealing can contribute to water scarcity, as sealed
surfaces prevent the natural infiltration of water into the ground.
The relationship between biodiversity and financial institutions is indirect. Erste Group finances companies that are at least partly
dependent on ecosystem services to produce goods and services. Soil sealing has been identified in the 2025 double materiality
assessment (DMA) as a negative impact on biodiversity originating from Erste Group’s portfolio activities, in particular the
financing of real estate projects and public infrastructure that seal land. Soil sealing contributes to increased flooding risk,
exacerbates climate change and can lead to potential health issues due to reduced air and water quality.
Real estate accounts for the largest share of Erste Group’s portfolio activities. Further information can be found in the Consolidated
Financial Statements in Note 35 Credit risk exposure under the sections ‘Credit Risk Exposure by Industry and Risk Category’ and
‘Credit Risk Exposure Collateralised’.
Erste Group has no material impact (in form of office and branch locations) on biodiversity-sensitive areas and no material impacts
were identified related to its own operations affecting any biodiversity-sensitive areas.
E4-1 – RESILIENCE OF ERSTE GROUP'S STRATEGY AND BUSINESS MODEL IN
RELATION TO SOIL SEALING
ERSTE GROUP’S BUSINESS ENVIRONMENT
Erste Group has analysed the business environment it is operating in and performed an analysis to assess the resilience of Erste
Group’s business model. As part of the resilience analysis, both physical and transitional risks are tracked and analysed. Within this
framework, biodiversity loss is categorised under other-environmental risks. Systemic risks are not treated as a separate risk type,
but are indirectly covered when transition and physical risks are assessed based on comprehensive stress testing. Erste Group’s own
operations and upstream value chain have not been assessed.
The assessment covers short-, medium- and long-term horizons. The time horizons, used for the assessment of the business
environment and resilience are defined by risk management and are as follows:
_ short-term: 0-1 year
_ medium-term: 2-5 years
_ long-term: more than 5 years (up to 2050)
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Currently, systematic external stakeholder involvement in the analysis has not yet been established. However, an ongoing dialog is
conducted with relevant stakeholders, such as supervisory and regulatory authorities, investors, analysts and rating agencies as well
as academic and environmental institutions and NGOs. These discussions were also taken into account in the assessment of the
topic as material.
The evaluation for the resilience analysis was carried out in a holistic and qualitative manner and included in the assessment
process. Further details can be found in chapter E1 SBM-3 - Resilience of the business model.
RESULTS OF THE RESILIENCE ANALYSIS
The primary goal of the resilience analysis was to illustrate how the business model of Erste Group could be influenced by various
climate and environmental risk factors. Biodiversity and ecosystem-related physical and transition risks are not yet covered
comprehensively by the resilience analysis. Still, Erste Group did not identify any significant threats to its business model or
strategy when considering biodiversity and ecosystems-related physical or transition risks with the existing analysis. Systemic risk
is not yet analysed.
STRATEGY AND BUSINESS MODEL
Erste Group is assessing its strategy and business model in the light of the analysis described above. Erste Group actively engages
with clients and takes environmental policies into account when deciding on new business. As an example, in the course of the
valuation of the collateral and inspection of a property, it must be examined in terms of biodiversity. For this purpose, the Green
Building Certificate can be checked for information on biodiversity as the first source of information. The biodiversity related
information has to be documented in the valuation report. If violations of environmental protection are identified, the necessary
renaturation costs must be taken into account in the valuation.
E4-2 – POLICIES RELATED TO SOIL SEALING
Erste Group did not yet develop a comprehensive policy to address this sustainability matter. As a first immediate step, its internal
Group Responsible Financing Policy has been complemented by restrictions to finance activities or projects that may impact
protected sites or are located within protected areas. Once having established a methodology to estimate or measure the actual
contribution to soil sealing from its financed portfolio, Erste Group is dedicated to develop a strategy, establish more actions and set
targets to reduce negative impacts on biodiversity and ecosystems from soil sealing. Material dependencies, physical and transition
as well as systemic risks and opportunities are currently not covered.
GROUP RESPONSIBLE FINANCING POLICY
The Group Responsible Financing Policy establishes the exclusion criteria for financing of the Energy, Defense, Biodiversity and
Gaming & Gambling sector. In the DMA, Erste Group has identified a material impact related to its financed portfolio for the
subtopic soil sealing. As a result, Erste Group has broadened the scope of this policy and implemented exclusion criteria regarding
activities and projects in protected areas, or with adverse impact on protected areas as a first step to reduce the identified negative
impact. Erste Group will not finance any activities with material adverse effect on protected areas. An impact assessment of the
project must be carried out to assess all potential impacts. If the impact assessment confirms that satisfactory mitigation measures
have been taken to compensate for any negative impacts of the project on the protected area, the project may be financed. The
Group Responsible Financing Policy focuses on the financing business for corporate clients of Erste Group, its international
branches, its credit institution subsidiaries and their subsidiaries. This policy supports the steering of the portfolio and contributes
to addressing the identified material impact. Through clearly defined exclusion and non-eligibility criteria, Erste Group aims to
eliminate, prevent and mitigate ecosystem-related impacts.
Erste Group has established a clear structure and governance for executing decisions within the scope of the Group Responsible
Financing Policy and has implemented both a first and second level of control. At both the group and local levels, the first line of
control is executed by the business units and credit underwriting teams. On the group level, the second line of control is ensured by
the Non-Financial Risk function, in collaboration with the ESG function within the Credit Risk Portfolio. Locally, the second line of
control is carried out by the respective local Risk functions. The Group Responsible Financing Policy is owned by Credit Risk
Portfolio, has been communicated to relevant employees and is publicly accessible via Erste Group’s website. The policy’s
principles are reviewed at least annually, with updates made more frequently as deemed necessary by Erste Group.
More information on Erste Group’s Responsible Financing Policy can be found in E1-2.
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E4-3 – ACTIONS AND RESOURCES RELATED TO SOIL SEALING
Erste Group recognises the critical importance of biodiversity and ecosystems and is committed to addressing the negative impact
of soil sealing. Specific actions have not yet been established. However, Erste Group has reviewed the scope of its Group
Responsible Financing Policy and implemented exclusion criteria regarding activities and construction projects in protected areas
as a first step to reduce the identified negative impact. Following the identification of the material impact in the DMA 2025, specific
actions to measure progress will be defined in the upcoming years on the basis of a more in-depth analysis.
E4-4 – TARGETS RELATED TO SOIL SEALING
Erste Group is dedicated to integrating targets to reduce negative impacts on biodiversity and ecosystems into its strategic
framework. Specific targets have not yet been established. The identified material impact of soil sealing will trigger more
comprehensive disclosures in upcoming years.
E4-5 – IMPACT METRICS RELATED TO SOIL SEALING
Specific metrics related to the identified material impact of soil sealing in Erste Group’s real estate portfolio have not yet been
established. Erste Group does not disclose biodiversity metrics relating to its own operations, because it has no material impact on
biodiversity-sensitive areas.
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Social information
Own workfo rce
The scope of this chapter covers the material impacts and the opportunity that Erste Group has identified towards the company’s
own employees .
Erste Group’s success in the ongoing development of its organisation, its corporate culture and competences is critically driven by
employee engagement. Erste Group promotes modern working methods that support flexible, adaptive and client-centric work.
Erste Group attaches great importance to recruiting, retaining and engaging a highly qualified workforce to ensure its continuing
success and strives to be the employer of choice in the region in both the financial and IT sectors by offering opportunities for
training and continuing professional development, diverse and international teams, as well as exciting tasks within a flexible
organisation.
S1 SBM3 – MATERIAL IMPACTS, RISK AND OPPORTUNITIES RELATED TO OWN
WORKFORCE AND THEIR INTERACTIONS WITH STRATEGY AND BUSINESS MODEL
As part of its commitment to transparency and sustainability, this chapter provides a comprehensive overview of the IROs related
to its own workforce. As a leading bank, it is crucial for Erste Group to prioritise the well-being and development of its employees.
The company’s employees comprise individuals in employment relationship engaged in business operations or providing services
in alignment with their designated roles and remunerated in accordance with the Group Remuneration Policy. The employees of
Erste Group are permanent and temporary employees, full-time and part-time employees, interns, trainees and apprentice. In
addition to its own employees, Erste Group also engages non-employees for a defined period based on contractual terms.
Employment contracts take precedence over non-employees agreements.
Actual and potential impacts on the company’s workforce, as well as an opportunity for Erste Group were identified through the
double materiality assessment (DMA). The impacts originate from and are connected to people‑intensive operations. Group policies
and Erste Group’s People & Culture strategy addresses these impacts. This linkage ensures that workforce impacts shape strategic
priorities and decision‑making. By fostering leadership in digital transformation and providing further education in technology and
AI, Erste Group seizes the opportunity to strengthen its business model by enhancing workforce skills and driving innovation.
Policies and actions related to IROs identified extend to own employees excluding non-employees.

Sustainability matter | Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
Equal treatment and opportunities for all | S1-Gender equality and equal pay for work of equal value | Negative impact | The current gender pay gap which is mainly caused by gender disparity at different job levels at Erste Group disadvantages female employees. | Own operations | All time horizons
S1-Training and skills development | Opportunity | Tailored trainings and further education with regards to technology and AI improve employee's professional skills and qualifications and increases productivity and innovation. | Own operations | All time horizons
S1-Diversity | Positive impact | Diversity initiatives, such as employee networks that target demographics that would otherwise experience potential exclusion, have a positive impact on Erste Group employees by fostering an inclusive corporate culture. These efforts create an open environment where support is prioritized, allowing employees to feel valued and empowered. | Own operations | Short- to medium-term
Potential negative impact | Workplace discrimination can profoundly impact vulnerable groups of employees by fostering a hostile and unsafe work environment. These issues can lead to heightened stress and anxiety, making these employees feel unsupported and excluded and might affect their mental and physical health. | Own operations | All time horizons

119
GENDER EQUALITY AND EQUAL PAY FOR WORK OF EQUAL VALUE
Erste Group fosters initiatives for fair and equal pay for its employees, regardless of their gender. There has been a negative impact
of gender pay gap identified related to own employees, which is systemic within the context of job structure and prevalence of
certain gender in certain job roles. The objective is to achieve a sustainable reduction of both the adjusted and unadjusted gender
pay gap among employees of Erste Group. First steps towards transparency of gender pay gap reporting were done in 2023 by
establishing a group-wide common approach, definition and external certification. Actions and targets focus on the job structural
aspects of gender pay gap, to balance representation of women and men in various job roles especially in top-management. For
more information about the methodology and measurements please refer to chapter S1-4 and chapter S1-16 for actions and metrics.
The company is actively pursuing several measures to reduce pay disparities through existing internal resources at both Group and
local People & Culture levels. No additional costs were incurred in 2025. (In 2024, costs were incurred due to the engagement of
external consultancy services.)
TRAINING AND SKILLS DEVELOPMENT
The training program strengthens AI literacy across all local entities, enabling employees to confidently work with AI systems and
unlock new opportunities. By leveraging advanced data and AI capabilities, Erste Group can boost operational efficiency, elevate
customer experiences and accelerate product innovation. These advancements support sustainable growth and contribute to strong,
future‑oriented financial performance.
Tailored trainings and further education with regards to technology and AI create an opportunity to improve employee’s
professional skills and qualifications and increases productivity and innovation.
Coordination of the actions is in group and local People & Culture departments and Erste Group’s subsidiary Österreichische
Sparkassenakademie with expenditures amounting to EUR 21.6 million in 2025 (2024: EUR 21.3 million).
DIVERSITY
Erste Group fosters an inclusive corporate culture that creates an open environment of inclusion and support for all employees,
regardless of gender, ethnic background, sexual orientation, age or any other characteristics. A work culture shaped by acceptance,
respect, fairness and equal opportunities has a positive impact on its employees.
Erste Group recognizes both positive and potential negative impacts related to diversity. Erste Group’s positive impact is visible in
the support provided to vulnerable groups by fostering an open, supportive environment that values and empowers the respective
groups (such as people with disabilities, queer people and women). Erste Group actively prevents potential workplace
discrimination for all employees. Recognizing that discrimination can disproportionately affect vulnerable groups, leading to
feelings of exclusion, increased stress and potential harm to mental and physical health, the company embeds anti-discrimination
measures within its policies and culture.
Actions taken by Erste Group to address diversity and equality include various diversity initiatives such as employee networks Erste
Colours for queer employees, Erste Women’s Hub for women & Erste Ability for employees with disability. The coordination of the
measures lies with group and local People & Culture departments.
Diversity is an integral part of the company’s identity, the client interactions and the corporate culture of Erste Group. Accordingly,
the resources supporting diversity measures are embedded across various departments. Therefore, the budget varies and depends
on the number of projects, training courses and initiatives for the respective year.
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S1-1 – POLICIES RELATED TO OWN WORKFORCE

Impacts, risks and opportunities | Strategy / Policy | Actions | Targets
The current gender pay gap which is mainly caused by gender disparity at different job levels at Erste Group disadvantages female employees. | Group Remuneration Policy Group Diversity and Inclusion Policy | Hiring and Succession Planning Standards based on Women Career Index Performing a Gender Pay Gap Analysis | Gender representation in management board positions and on B-1 management level
Tailored trainings and further education with regards to technology and AI improve employee's professional skills and qualifications and increases productivity and innovation. | Group People & Culture Strategy | Skills-based development talks and performance reviews Employee and leadership development | No target
Diversity initiatives, such as employee networks that target demographics that would otherwise experience potential exclusion, have a positive impact on Erste Group employees by fostering an inclusive corporate culture. These efforts create an open environment where support is prioritized, allowing employees to feel valued and empowered. Workplace discrimination can profoundly impact vulnerable groups of employees by fostering a hostile and unsafe work environment. These issues can lead to heightened stress and anxiety, making these employees feel unsupported and excluded and might affect their mental and physical health. | Group Diversity and Inclusion Policy | Employee Resource Groups: Erste Colours, Erste Women’s Hub & Erste Ability Discrimination prevention strategies | Gender representation in management board positions and on B-1 management level

The Peop le & Culture strategy of Erste Group is founded on the objective of building the bank of tomorrow through its people. The
strategy is organised around three key priorities: talent, leadership and performance.
At Erste Group, employees’ individual drive, as well as their functional and technological expertise are key in creating value.
Placing the right skills and capabilities at the heart of Erste Group’s hiring and internal mobility decisions, ensures that people are
matched with their roles where they can thrive and have an impact.
Leadership culture is a key differentiator of Erste Group’s employer brand. In an era of rapid technological change, leaders play a
pivotal role in unlocking the potential of Artificial Intelligence and digital innovation. Their ability to champion technology-driven
transformation, foster customer-centricity and prioritize the development of individuals and teams ensures that Erste Group stays
ahead in a competitive market. Erste Group needs leaders who not only manage but inspire, embrace emerging technologies and
deliver results that matter.
Erste Group’s Leadership Dimensions are more than guiding principles – they represent a competitive advantage in shaping a
future-ready organization. By actively promoting AI and technology-related upskilling, leaders empower teams to make confident
decisions, enhance productivity and drive meaningful change across the Group.
At Erste Group, performance management puts focus on impact rather than hierarchy. Alignment with strategic goals follows by
establishing clear expectations around both results and behaviours. Continuous dialogue, regular feedback and development
planning foster a performance culture at Erste Group.
Erste Group gives its employees a voice through regular group-wide engagement surveys, which are described in S1-2 in more
detail. Based on this continuous feedback from its employees, Erste Group supports targeted improvement measures in all areas
and constantly grows with its employees.
These measures include a commitment to greater transparency and gender equality in remuneration. Erste Group’s principles of
employee centricity drive its operations, enabling Erste Group to realise the potential of its employees. Furthermore, Erste Group is
committed to nurturing an inclusive work environment for all employees, including monitoring progress towards targets in
collaboration with its local bank subsidiaries to reach underrepresented gender ratio metrics on managerial levels.
HUMAN RIGHTS COMMITMENTS
Erste Group’s Code of Conduct sets clear commitments for human rights protection, guided by its values, ethical principles,
national and international laws. These commitments are grounded in recognized international human rights frameworks,
including the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the
OECD Guidelines for Multinational Enterprises.
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Erste Group’s Code of Conduct refers to its Group Diversity and Inclusion Policy, which clearly defines expected behaviour, roles
and responsibilities and demonstrates how diversity is lived across Erste Group, thus ensures that all employees and customers are
treated equally. With regard to labour rights, Erste Group’s Code of Conduct aligns with national labour laws as well as the
principles of the ILO Declaration on Fundamental Principles and Rights at Work, and it upholds all fundamental rights by
encouraging freedom of association and collective bargaining, prohibiting any form of forced or child labour, eliminating any form
of discrimination, and promoting a safe and healthy working environment. Erste Group further strengthens this commitment
through direct and indirect engagement with its employees, and through clearly defined processes to address any form of
discrimination. Further information is provided in chapter S1-2 and S1-3. Fair and reasonable remuneration is integral to
compliance with labour rights within Erste Group, and is governed by the Group Remuneration Policy. The Code of Conduct is
approved by the Holding Management Board and is available on Erste Group’s website.
Processes and mechanisms to monitor compliance with these international standards and conventions include Erste Group’s
regular procedures outlined in chapter S1-2 and S1-3 to raise the concerns and remedies for negative impacts on human rights
violation. Erste Group further supports adherence to its commitments through the Erste Integrity whistleblowing platform, which
serves as the central mechanism for confidentially reporting suspicions of misconduct or seeking guidance on related topics. More
information on the Erste Integrity Whistleblowing Platform is provided in the G1 section.
GENDER EQUALITY AND EQUAL PAY FOR WORK OF EQUAL VALUE
Erste Group aims to promote fair rewards based on job value and equal pay for similar roles. The compensation structure is built on
competitive base pay and gender-neutral policies, guaranteeing equal pay for equal work or work of equal value.
Erste Group recognizes that the unadjusted gender pay gap partly reflects the underrepresentation of women in higher-paid roles.
To address this, targets for women in top management are set and fair succession planning is implemented (see chapter S1-5).
Collective agreements and internal job grading further support equality within job roles.
Group Remuneration Policy
Erste Group’s Remuneration Policy establishes the standards, rules and principles of the remuneration system and strategy, which
are designed to reward competitively, based on long-term sustainable performance. The Remuneration Policy promotes gender
equality and equal pay for equal work, thereby creating a secure environment with standardised and adequate wages for all
employees regardless of their gender. All employees are entitled to fair and favourable working conditions with special focus on
remuneration. This necessitates to strive for a reduction of the adjusted as well as the unadjusted gender pay gap.
The Remuneration Committee of Erste Group Bank AG’s Supervisory Board is responsible for overseeing the implementation of
the Remuneration Policy to ensure it operates as intended. The committee functions under delegated authority from the
supervisory function. The Remuneration Committee of Erste Group Bank AG approves the general principles of the Remuneration
Policy, reviews them at least once a year and is responsible for their implementation. The committee monitors the Remuneration
Policy, remuneration practices and remuneration-linked incentive programmes in relation to the control, monitoring and
containment of risks, the capital base and liquidity. The committee approves material exceptions from the application of the
Remuneration Policy to individual staff members of the company and monitors the payment of variable remuneration to members
of the Management Board. The committee members collectively possess adequate knowledge, skills and experience in
remuneration policies and practices, risk management and control activities, as well as variable remuneration schemes and the
associated risks. The committee considers the long-term interests of employees, shareholders, investors and other stakeholders in
Erste Group. It holds meetings at least twice a year.
The Remuneration Policy provides a remuneration framework and applies to all employees of Erste Group and to members of the
Supervisory Board of Erste Group Bank AG on a consolidated, sub-consolidated and solo level, in all credit and financial
institutions and other institutions within the scope of CRR consolidation, including all branches. The Remuneration Committee is
responsible for overseeing the implementation of the policy to ensure it operates as intended. The Committee functions under
delegated authority from the supervisory function. The Group Remuneration Policy refers to Erste Group’s Code of Conduct, which
covers third-party standards like the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and
Rights at Work and the United Nations Guiding Principles on Business and Human Rights.
Employees are represented in the Remuneration Committee of Erste Group Bank AG by representatives of the Works Council of
Erste Group Bank AG. The Remuneration Policy is communicated to all employees through Erste Group’s intranet.
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TRAINING AND SKILLS DEVELOPMENT
Erste Group strives to be the place where people transform obstacles into opportunities, learn continuously and collaborate across
boarders. Training and development not only enhance qualifications, engagement and productivity, but also generate future
advantage for Erste Group. By strategically investing in tailored technology and AI-related training in line with the Group AI
Strategy and Group AI Governance Policy, Erste Group strengthens employees’ professional skills and future-ready qualifications.
The training program aims to establish a foundational understanding of AI systems across all local entities enabling employees to
recognize potential risks, comply with applicable regulations, and make informed decisions when interacting with AI systems.
Empowerment through data and AI, using advanced data and AI capabilities increases operational efficiency, enhances the
customer experience, and ensures regulatory compliance which transforms to sustainable long-term financial results of Erste
Group.
All employees have access to professional development coordinated by Group and local People & Culture teams and the
Oesterreichische Sparkassenakademie.
Technology and AI in People & Culture Strategy
The topic of Training and Development is steered under a common umbrella within Erste Group People & Culture strategy without
a specific group policy in place focused on upskilling and AI people development.
AI training and development efforts are closely connected to Erste Group strategic commitments on development of human
expertise and digital innovation skills. In the People & Culture Strategy of Erste Group, this pillar translates into placing technology
awareness and deep understanding of customer journeys at the core of all talent‑related activities. In line with the strategic
priorities, continued skill development in AI will remain central and transparent, supporting all employees in delivering
high‑quality, customer‑oriented services in an AI‑enhanced environment. Group People & Culture is the most senior level
accountable for implementation of the strategy.
DIVERSITY
For Erste Group, an inclusive corporate culture means recognising every employee for their individuality. Erste Group understands
diversity and inclusion as a mindset that obliges everyone to treat each other with respect, so that everyone feels safe to speak their
mind openly. Erste Group seeks to create an environment in which people are enabled to develop themselves, support each other
when facing challenges and bring out the absolute best in themselves and their peers. By communicating Erste Group’s diversity
values outside and inside the organisation, all employees and business partners perceive the overarching objective of Erste Group’s
open environment and acceptance of all.
Building on this foundation, Erste Group translates its commitment to diversity and inclusion into concrete actions that shape
everyday practice. As part of its corporate strategy, the Group implements initiatives designed to reduce barriers and foster equal
opportunities, such as advancing gender balance, supporting employees from diverse backgrounds and ensuring accessibility for
individuals with disabilities. These principles are brought to life through comprehensive training programs that promote respectful
interactions, raise awareness of unconscious bias and strengthen inclusive leadership, complemented by sessions on preventing
harassment and enhancing disability inclusion. Employee resource groups, including Erste Women’s Hub, Erste Colours and Erste
Ability, further reinforce representation and create spaces for dialogue and belonging. All measures are embedded within the
Group Diversity and Inclusion Policy, which ensures accountability, clear governance structures and dedicated resources to sustain
progress and uphold the inclusive mindset that defines Erste Group.
Group D iversity and Inclusion Policy
Erste Group’s Diversity and Inclusion Policy addresses sustainability matters related to diversity, gender equality and
discrimination. Promoting diversity within the organisation fosters an open and inclusive corporate culture, which positively
impacts equal opportunities for its employees, so that they can develop and grow within Erste Group’s organisation.
The Group Diversity and Inclusion Policy addresses both the positive and potential negative impacts. In terms of positive impact,
fostering an inclusive corporate culture includes supporting employee networks that represent demographics that might otherwise
face potential exclusion, the policy defines diversity dimensions such as ethnicity, gender, sexual orientation, gender identity, social
economic status, age as well as cognitive dimensions. In terms of potential negative impact, the policy highlights the importance of
creating a discrimination‑free workplace as a foundation for an inclusive culture. This is reinforced through designated focal
persons (such as an ombudsperson or anti-discrimination officer) who handle complaints accessible processes for all employees
and track the frequency and type of complaints related to discrimination, as well as, ongoing training, such as unconscious bias and
anti‑harassment programs that strengthens awareness and prevention.
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The Group Diversity and Inclusion Policy describes roles and responsibilities, as well as general guidelines for developing,
implementing and adjusting diversity and inclusion strategies and targets. Group Diversity coordinates the implementation of D&I
initiatives across business units and countries, advises the Holding Board and top management on D&I matters through regular
reporting and monitors progress to ensure strategic consistency. The Holding Management Board approves the Group Diversity
and Inclusion Policy.
The Group Diversity and Inclusion Policy covers employees of local banks in Erste Group’s core markets (Erste Group Bank AG,
Erste Bank Oesterreich, Česká spořitelna, Banca Comercială Română, Erste Bank Hungary, Slovenská sporiteľňa, Erste &
Steiermärkische Bank (Erste Bank Croatia) and Erste Bank a.d. Novi Sad (Erste Bank Serbia)), with the respective entities
responsible for their local subsidiaries. The Management Board holds the highest level of accountability for the implementation of
the policy. It refers to Erste Group’s Code of Conduct, which aligns with third-party standards such as the Universal Declaration of
Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the United Nations Guiding Principles on
Business and Human Rights. The Group Diversity and Inclusion Policy is communicated to all employees through Erste Group’s
intranet.
S1-2 – PROCESSES FOR ENGAGING WITH OWN WORKFORCE AND WORKERS'
REPRESENTATIVES ABOUT IMPACTS
As a responsible employer, Erste Group recognises the importance of engaging with its workforce and workers’ representatives to
understand the impacts of its operations on its employees. One approach that Erste Group takes to foster positive impacts and
mitigate negative impacts is by promoting a feedback culture. The company supports this culture by providing many channels for
direct and indirect engagement with employees, managers, teams and communities. This gives employees ample opportunities to
voice their views and concerns and provide feedback on matters of training and skills development, diversity and equality and any
other topic.
The Management Board, particularly the CEO, is entrusted with the responsibility of managing the organisation in a manner that
serves the best interests of the company, while considering the interests and concerns of the employees.
DIRECT ENGAGEMENT
Erste Group engages with its employees directly through annual one-to-one performance reviews, through the Group internal
social network, via the Group engagement survey or indirectly via representative bodies such as works council. Employee
engagement activities take place at both the organisational level and lower ones such as team, project or community level.
Performance reviews
Skills development management at Erste Group is driven by constructive feedback and a fair and transparent assessment of
individual potential. The individual performance review meeting takes place annually between the direct superior and the
employee. During the performance review, the contribution and impact the employee has made to the company’s success and
employee’s personal development plan are discussed. The department management (B-1), as the most senior role, is required to
consider the results of these discussions and have an overview of performance and impact in their area of responsibility.
Additionally, assessments of long-term performance and potential of individuals can be made during talent reviews / succession
planning sessions throughout the year.
Group-wide internal social network
In 2024, Erste Group’s internal social network was successfully launched for all employees. It is part of the communication
platform ‘echo’. The internal social network is an interactive and easy-to-use communication channel, which fosters dialogue
between employees. It increases visibility and interaction across country and entity borders and establishes a unique and shared
employee experience. Additionally, this tool is useful for top management to share and discuss current topics, initiatives and events
with all employees.
Overall, Erste Group’s internal social network is very well received by employees. As of the end of December 2025, there are 20
active group-wide communities (2024:14) in which employees exchange knowledge about ESG, Artificial Intelligence, Tech trends,
etc. or get together to support each other e.g. Queer and Allies community, Erste Colours community, Ability and Inclusion,
community Women’s Talk, Gen Z Community. Furthermore, there are more than 300 country- and institute-specific communities
(2024: 270) in place. Group Communications together with the local Communications Departments are responsible to develop the
communication platform enhancing employee experience and strengthening its group-wide governance.
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Engagement survey
Erste Group aims to improve its workplace culture by actively listening to employees and acting on their feedback. The employee
surveys provide insights into employee engagement, identifying both strengths and areas for growth. Erste Group aims to conduct
the survey on a yearly basis. The People & Culture team is responsible for coordinating regular engagement surveys at the group
level.
The employee engagement survey serves as a highly valuable mechanism for receiving feedback from employees which influences
decisions directly. The transparent nature of the results and feedback obtained from the survey enables the implementation of an
effective improvement and action plan. These results are presented to local management boards and the Holding Board at the
group level. Teams are encouraged to work on improving identified areas at a team level. Furthermore, areas that require
improvement as well as a summary of actions and approaches on country level are made available to all employees on the intranet.
The results are handled under strict confidentiality. All participants are informed of the confidentiality framework at the beginning
of the survey. In addition, the principles governing confidentiality are clearly outlined in the intranet FAQs. Employee perspectives
are integrated into the decision‑making process, and employees are informed about how their feedback has influenced decisions
through their managers and HR Business Partners in the first place. In addition, each country has established its own follow‑up
process, tailored to local needs and organizational context. An example is the introduction of the so-called role of ‘Magic Advisors’
in some entities to customise actions within their own teams based on the team’s feedback in the engagement survey.
In 2025, Erste Group conducted an employee engagement survey to measure employee engagement and help make Erste Group the
best workplace it can possibly be. More than 44,000 people (2024: 40,000) were invited and more than 36,000 employees (2024:
32,000) participated, achieving a response rate of 82% (2024: 81%). Their ratings and more than 57,000 comments (2024: 37,000)
contributed to a group-wide Employee Engagement Index score of 80 out of a possible 100 points (same as 2024). To ensure a
positive impact of the survey on the employees, a follow-up process to discuss feedback with employees and plan the next steps was
initiated at various levels across the Group. Group results and country results together with analyses of employees comments and
action steps are presented to the Holding Management Board.
INDIRECT ENGAGEMENT VIA WORKER’S REPRESENTATIVES
In accordance with legal requirements, Erste Group involves its employees in management decisions via representative bodies in
matters that directly affect employees.
In Erste Group Bank AG, as required by law, four times a year the works council meets with the Management Board. In addition,
People & Culture routinely convene with the works council to hold discussions and keep a steady line of communicatio n. The
works council informs regularly employees about current topics, developments and actions, so that it keeps them up to date,
demonstrating the effectiveness of indirect engagement with employees.
The main tasks of the works council are:
_ representing the economic, social, health-related and cultural interest of employees,
_ safeguarding the interests of employees with regard to the employer,
_ monitoring adherence to laws relating to employees, payment of salaries, occupational health and safety,
_ intervening to ensure compliance with employee-related legislation, improving working conditions and setting up/organising in-
company training,
_ two-way sharing of information: from the Management Board to the works council and from the works council to the employees
and vice versa,
_ employee counselling and consultations with the employer on current and individu al m atters.
The local banks in Erste Group’s core markets (Erste Group Bank AG, Erste Bank Oesterreich, Česká spořitelna, Banca Comercială
Română, Erste Bank Hungary, Slovenská sporiteľňa, Erste & Steiermärkische Bank (Erste Bank Croatia) and Erste Bank a.d. Novi
Sad (Erste Bank Serbia)) have different forms of employee representation based on local legislation. They are represented through
trade unions or work-councils under national legislation at the company level. The subsidiaries continuously collaborate with
employee representation bodies at the strategic and operational levels and arrange regular meetings between the local management
board and the representative body. Collective agreement is conducted between the representative bodies and government bodies.
The majority of the Savings Banks in Austria have their own works councils. The respective councils collaborate with one another
and meet three to four times per year to align on key objectives.
Employees are welcome to contact the works council at any time through a channel of their preference such as email, phone,
Microsoft Teams Call, or personally to ask for support or raise concerns for individual matters. Once an employee reaches out, a
meeting, either in person or online will be arranged with a member of the works council, which will consult the employee and will
handle this information with highest confidentially. If it becomes necessary to involve the employee’s line manager to resolve the
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matter, the works council will do so given that the employee agrees. Should a follow‑up meeting be required, it will be scheduled
accordingly.
Regular engagement between management and representative bodies occurs as required by local law. Works council delegates
participate in the employer’s supervisory bodies, with one third of the members representing employees. By law, the works council
is either proactively or, upon request, promptly and fully informed about all significant matters of business management. Within its
consultation rights, the works council must be heard and may submit proposals that the employer is required to consider in
planning and decision‑making. Based on this process, works agreements mandatory, enforceable, or voluntary may be negotiated.
Erste Group has concluded an agreement with the European Works Council. This agreement applies to all employees in Erste
Group operations and entities subject to Directive 2009/38/EC on the Establishment of a European Works Council and, beyond
that, in all those countries in which Erste Group operates and which have entered into an association agreement with the European
Union.
ENGAGEMENT WITH VULNERABLE GROUPS
To gain insights into the interests of employees who are part of vulnerable groups, Erste Group has established various initiatives
such as Erste Colours, Erste Ability and a group-wide social network to get valuable insight to the views of all its employees
including vulnerable people or queer people (for more information, see chapter S1-4). The Holding Board is informed about
activities and enters the dialogue with employee network groups.
S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR OWN
WORKFORCE TO RAISE CONCERNS
Processes to remediate negative impacts and channels for the own workforce to raise concerns are crucial for any organisation that
cares about its employees’ satisfaction and engagement. Erste Group takes this responsibility seriously and is committed to address
any material negative impact on its workforce that it may cause or contribute to, with special attention to equal treatment and
discrimination. Erste Group identifies and assesses negative impacts through employee engagement surveys, feedback mechanisms
between managers and employees as well as incident reporting systems through dedicated channels. Furthermore, Erste Group
investigates reported issues to understand their root causes.
When a negative impact is identified, Erste Group takes steps to provide remedies, which may include:
_ providing access to counselling and support services,
_ implementing corrective actions, such as policy changes or additional training,
_ engagement with employees and their representatives to ensure that the remedies provided are fair and effective.
To ensure effectiveness, Erste Group monitors the outcomes of its remediation actions through feedback from affected employees
and engagement surveys.
Approach to remediation of discrimination and gender equality
To remediate cases of discrimination, Erste Group has established specific channels and processes to enable employees to raise
their concerns. Each entity has its defined anti-discrimination approach. Erste Group’s employees can address their concerns
regarding any type of discrimination, including gender equality and equal pay for work of equal value.
Erste Group’s entities have aligned the anti-discrimination processes with their respective local legal requirements and Erste
Group’s values. The objective is to ensure a zero-tolerance for unacceptable behaviour in the workplace, including discrimination,
harassment, bullying, mobbing, violent behaviour, gender-based discrimination and to provide all employees with the necessary
channels to submit complaints and fully exercise their rights. The banks have respective policies or internal acts regarding anti-
discrimination, for instance in Bosnia and Herzegovina (Labour Regulations of Sparkasse Bank dd BiH and Code of Ethics),
Czechia (Code of Ethics and Work Rules), Hungary (Code of Ethics), Montenegro (Whistleblowing Policy and Code of Ethics),
North Macedonia (Workplace Harassment Protection Law and Discrimination Law), Poland (Good Conduct Policy, Anti-mobbing
Policy, an Anti-discrimination Rules within the Work Regulations), Slovakia (Whistleblower app), Serbia (Whistleblowing Policy
and Code of Conduct), Croatia (Whistleblowing policy, Labour Regulation Rulebook, and Anti-discrimination Officer), and in
Slovenia (Internal procedure, and assigned officers for handling complaints and remediation).
These policies and internal acts are available on the entity’s intranet and the employees are informed about the respective local
laws during the onboarding process. Depending on the entity, employees can file complaints to the Anti-discrimination Committee,
Committee of Ethics, the Internal Ombudsman, the Ethics Manager, Head of HR Employee Care Department, or the Head of local
unions, authorised individuals from Human Resources or Legal or mobbing officers. For more details refer to chapter S1-4.
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Channels to raise concerns
As already described, Erste Group has established multiple channels through which employees can raise concerns and have their
needs addressed by the company:
_ line manager as the first contact point to raise any concerns,
_ whistleblowing process (see chapter G1-1),
_ worker’s representatives, e.g., local works councils,
_ employee survey,
_ performance reviews,
_ contact with the Anti-Discrimination Officer, ethics manager, ombudsman office, or specially trained people.
Each entity decides on local initiatives to inform employees about the availability of channels to raise their concerns. One of the
options used is to inform newcomers right from the beginning of their employment as part of the onboarding welcome day
programme .
Given the highly sensitive nature of the matters addressed through these mechanisms, Erste Group does not currently conduct
formal surveys among employees who have used internal grievance or concern raising channels. Protecting the privacy, dignity,
and emotional wellbeing of individuals who use these channels is a priority, and Erste Group aims to avoid creating any perception
for employees of pressure to evaluate or measure outcomes or individual solutions regarding these sensitive processes.
Nevertheless, Erste Group does obtain insights regarding the functioning of these channels. Employees who make use of the
mechanisms frequently provide individual feedback directly to the antidiscrimination officer or other designated contact persons.
While this feedback is not collected or recorded as part of a formal measurement system, it provides qualitative indications of
experience and trust employees have in the process. In addition, Erste Group monitors whether individuals escalate their concerns
to external bodies after having used the internal channels. Such escalation occurs only in rare cases, which Erste Group interprets
as an indirect indicator that the majority of users find the internal resolution process adequate and effective.
The channels through which employees can raise their concerns and needs are well-established, as dialogues with line managers
and the employee survey occur regularly. Due to the consistent rhythm of engagement opportunities and the multitude of channels
available for employees to raise their concerns and issues, the measures taken to improve employee matters are regularly
monitored with consideration to employee interests at the local entity level. On a group level Erste Group can assess the
effectiveness of the whistleblowing channel which also includes reports related to unacceptable behaviour. The measures taken
based on the whistleblowing reports are provided to the Management and Supervisory Board. In addition, the Head of Group
People & Culture is a member of the Whistleblowing Committee which indicates that cases related to its employees are given
special attention.
S 1-4 – TAKING ACTION ON MATERIAL IMPACTS ON OWN WORKFORCE AND
PURSUING MATERIAL OPPORTUNITIES RELATED TO OWN WORKFORCE AND
EFFECTIVENESS OF THOSE ACTIONS
Group People & Culture identifies necessary and appropriate actions in response to actual or potential negative impacts on the
workforce through structured processes embedded in the People & Culture strategy and Group policies. To ensure that
organizational practices do not cause or contribute to material negative impacts on its own employees, Group People & Culture
works in close cooperation with employee council and where relevant also other departments.
Erste Group has implemented various actions to address the material topics of gender equality, training and skills development and
diversity to demonstrate a commitment to preventing, mitigating and remedying significant negative impacts while especially
contributing to achieving positive impacts and pursuing opportunities. Erste Group has established group policies that provide a
framework for its approach to these material matters (listed in chapter S1-1). The local policies in each entity respect the local legal
framework of the country in which they operate and are in line with the group policies through a rollout implementation process.
Financial and other resources for actions related to Erste Group’s own employees are allocated locally based on the strategy of each
entity, however mostly in local human resources departments. The actions are taken in the reporting year and are also planned to
continue in the future to bring a continuous positive impact on the employees and to mitigate the negative impact of gender pay
gap to ensure continuous gender equality and preventing potential negative impact of discrimination.
The actions presented in the table below reflect a broad set of Group practices designed to support employees across Erste Group's
entities. Group‑wide measures, such as those embedded in the Remuneration Policy and Group Code of Conduct, apply to all Erste
Group entities. This include equal opportunities, diversity and inclusion, fair working conditions and remuneration and anti-
discrimination and respectful behaviour in the workplace. Initiatives under the People & Culture Strategy and the Succession
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Policy are primarily implemented across the major banking entities in the local markets. Together, these actions ensure a
consistent, responsible and employee‑focused framework across the entire Group and contribute to effectively addressing material
impacts on the workforce.

Sub-topic | List of key actions | Policy
S1-Gender equality and equal pay for work of equal value | Hiring and Succession Planning Standards based on Women Career Index Performing a Gender Pay Gap Analysis | Group Remuneration Policy Group Diversity and Inclusion Policy
S1-Training and skills development | Skills-based development talks and upskilling Employee development | Group People & Culture Strategy
S1-Diversity | Employee Resource Groups: Erste Colours, Erste Women’s Hub & Erste Ability Discrimination prevention strategies | Group Diversity and Inclusion Policy

GENDER EQUALITY AND EQUAL PAY FOR WORK OF EQUAL VALUE
Erste Group reaffirms its strong commitment to advancing gender equality and ensuring equal pay for work of equal value. In 2025,
the Group continues to actively work on targeted measures derived from the Women Career Index (FKi) initiative focusing on
strengthening gender equality, increasing female representation in leadership and supporting career development for women and
maintain monitoring and steering of the gender pay gap, reinforcing its dedication to creating a fair and inclusive workplace.
Hiring and Succession Planning Standards based on Women career index (FKi)
Building on last year’s comprehensive analysis, Erste Group continued its commitment to fostering equitable career development
for women across the organization. The index model applied offers strategic insights into organizational structures and readiness
for change, serving as a benchmark across industries. The FKi is an ongoing initiative that involves all local banks in Erste Group’s
core markets. Data collection is conducted in a regular cycles.
In 2025, the focus shifted towards translating these insights into tangible actions. Based on the group-wide findings, two
overarching measures were developed to advance equal opportunities: the establishment of inclusive hiring and succession
planning standards. Additionally, each local bank defined at least one tailored initiative, which is currently being implemented.
Gender Pay Gap Analysis
The aim of the gender pay gap analysis group initiative is to have a common approach group-wide, to use a common methodology,
common definitions and the same certification. The gender pay gap is measured as an unadjusted index and also as an adjusted
index where structural explanatory factors are taken into account. More information is provided in chapter S1-16. Coordination of
the actions lies in group and local People & Culture departments.
A gender pay gap calculation of unadjusted gender pay gap is performed for all employees. Analyses of the structural impacts and
adjusted gap are performed for more than 80% (2024: 80%) of employees (excluding students and trainees). The objective of this
action is to bring group-wide transparency on equal gender opportunities and remuneration.
Ensuring balanced nominations in talent management, conducting hearings for all positions, targeted coaching, balanced
succession lists and conducting a group-wide diversity audit are actions to balance gender representation in management positions
and to target the negative impact of gender pay gap in the entities in scope of the Group Diversity Policy and the Group Succession
Policy.
Via regular review and adjustment, Erste Group hopes to prevent negative impacts. The actions related to the sustainability matter
of gender equality and equal pay for equal work are monitored through the established targets concerning gender representation
and are continuously assessed for their effectiveness (for more information, see chapter S1-5).
By implementing these initiatives and setting targets on balanced gender distribution in the top-management, the organisation
fosters a more inclusive and diverse environment, where equal opportunities and remuneration are provided for all employees.
TRAINING AND SKILLS DEVELOPMENT
Erste Group fosters continuous leaning and development, recognizing the opportunity and potential of technology and artificial
intelligence. Through tailored trainings and further education in technology and AI, Erste Group improves and empowers
employees professional skills and qualifications leading to company competitive advantage in shaping a future-ready organization.
To strengthen and support training and skills development, Erste Group places focus on future-ready skills like data literacy and
Artificial Intelligence. A comprehensive approach includes specialised trainings on data and AI, performance reviews and
development talks, and targeted leadership and employee development programs.
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To evaluate the impact of its individual and team development initiatives, Erste Group evaluates by participant numbers, trainings
demand and qualitative feedback.
Skills-based development talks and upskilling
Development discussions and performance reviews play a central role in identifying and cultivating future relevant capabilities.
Annual development cycles are being strengthened with skills-based development talks, profiling individual skills such as those
related to AI and digital literacy, and helping to establish development plans. By integrating technology and AI related skill
development into these processes, Erste Group can direct employees toward tailored training and continuous learning pathways
that enhance their professional qualifications in identified job positions. This targeted investment in upskilling not only
strengthens digital readiness but also creates financial opportunities for the organization: improved productivity, more efficient
workflows, reduced operational risks, and accelerated product innovation. Through structured feedback and development
planning, the Group ensures that individual growth ambitions align with strategic business needs and equip employees in
identified job positions to leverage technological advances for sustainable performance and value creation.
As Erste Group initiated a skills management initiative and started alignment on group-wide standardized skills catalogue in 2025,
AI literacy and digital literacy are core skills, with structured evaluations and gap analysis processes to be implemented. This will
ensure that Erste Group’s employees are equipped to drive innovation, engagement and long-term value creation.
The employee performance talks with line managers is a group wide current measure. These employee interviews are a long-term
initiative designed to achieve a sustained impact. The interviews take place on a yearly basis.
The opportunity effectiveness of qualified high skilled employees with greater employee engagement and productivity is not
directly measurable with any specific indicator but can be visible in a long run through improvements in processes and products
that indirectly contribute to the financial result of the company.
Employee development
At Erste Group, using technology and Artificial Intelligence are important elements that are embedded in the learning and
development initiatives, ensuring a consistent baseline across functional and leadership programs, aiming to prepare employees
and leaders to navigate transformation and leverage innovation effectively.
Erste Group provides centrally managed group-wide learning programmes as well as country-specific personalised development
offers. Specialised training in Austria and across the group covers areas such as corporates & markets, finance including
controlling, asset/liability management, accounting, data excellence and AI knowledge. These programmes are a current long-term
initiative designed to achieve a sustained impact. All these programmes are offered on a yearly basis and have been running for
several years.
The newly introduced group-wide Learning Week further connects learning to strategic priorities. Each day featured 5 sessions on
future skills and updates on digital internal projects, showcasing also specific examples on applying digitalisation and using AI. The
program was openly available to the employees and the recordings made available afterwards.
In line with th e business strategy, enhancing the Data and AI knowledge and capability across the organisation has been defined as
one strategic goal for upcoming years. In partnership with Group AI Office, learning journeys for various target groups have been
designed and implemented based on the role-specific skills expectations. The learning journeys consist of a mix of various formats,
from AI Literacy web-based training available for all employees, webinars and specialised trainings and seminars.
In addition, senior leaders across the group attended an AI for Executives programme, focused on gaining a solid understanding of
AI as a catalyst for innovation and source of competitive advantage and discovering opportunities to create value through AI
implementations.
All courses and programmes are easily accessible and bookable through the Learning Management System. Erste Group
continually updates learning materials to reflect changes in regulations and offer training in fields like risk management, security
and compliance. The accessibility of learning offerings is constantly enhanced by the extensive implementation of digital learning
formats.
DIVERSITY
Diversity initiatives, such as groupwide trainings, employee networks and various diversity events that specifically address
vulnerable groups at risk of exclusion make a significant contribution to fostering an inclusive corporate culture at Erste Group.
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These measures create an open and supportive environment where equal opportunities are prioritized, enabling employees to feel
valued and empowered to realize their full potential.
Throughout 2025, Erste Group has consistently advanced its diversity focus areas with a clear strategic approach. A strong
foundation was established across the Group, including the implementation of key trainings in local languages such as ‘Fostering
Respectful Interactions’ and ‘Recognizing and Preventing Sexual Harassment’. In addition, to mark the International Day of
Persons with Disabilities, Erste Group launched its first Group-wide Disability Awareness Day on December 3, aimed at raising
awareness and fostering inclusion in the workplace.
Together with the ongoing development of Employee Resource Groups and inclusive leadership initiatives, these efforts reflect the
long-term commitment of Erste Group to embedding diversity and inclusion into its organizational culture and to fulfilling the
Group-wide gender targets.
Employee Resource Groups
Erste Group fosters a diverse and inclusive workplace through several ongoing active Employee Resource Groups (ERGs). These
groups are dedicated to promoting equal opportunities, empowerment and visibility for employees from underrepresented or
vulnerable communities – including women, queer individuals and people with disabilities.
Through tailored formats, ERGs create spaces for networking, dialogue and peer support. Their initiatives contribute meaningfully
to building an inclusive culture and complement the Group’s broader diversity and career development efforts.
Erste Colours advocates for the agendas of queer people. The group initiates and organises various events and content formats
throughout the year with the goal to raise awareness for LGBTQIA* people and their challenges. The Employee Resource Group
supports the organisation of Erste Group’s appearance at Vienna Pride, one of Erste Group’s partnerships.
Erste Women’s Hub is a network for women in Austria that has been providing a platform for exchange, networking and career
development for over ten years. It empowers women to share innovative ideas and actively shape their professional paths. As a
catalyst for personal and professional growth, the network plays a key role in promoting gender equality across all levels of the
organisation. A new working group, NextGen Woman, started its activities with a focus on next generations.
Erste Ability is Erste Group’s network focused on disability inclusion. It aims to raise awareness, break down taboos and provide a
platform for knowledge sharing and networking. This year, the breakfast events continued to be well attended, reflecting strong
interest and engagement. The Erste Ability Leo Talks format has also become well established, offering valuable support to
employees navigating disability in the workplace. All initiatives under Erste Ability are designed to promote openness,
understanding and equal participation and are aligned with Erste Group’s broader diversity and inclusion goals.
The Employee Resource Groups are mainly active in Austria and Hungary. In the other core markets, initial activities have been
established and are gaining visibility and significance. These resource groups are playing an increasingly important role at the local
level by fostering exchange, enabling empowerment and contributing to the integration of diversity and inclusion within the
respective local entities. These groups are designed for the long term and will continue their work in the future.
The initiatives of the Employee Resource Groups are regularly evaluated by participant numbers and qualitative feedback.
Resources for actions related to diversity matters are allocated in diversity teams locally and on the group level. Budget for group
diversity trainings is coordinated and allocated in the group diversity team on a yearly basis.
Discrimination prevention strategies
In alignment with the Group Diversity and Inclusion Policy, the establishment and maintenance of a discrimination-free
environment is recognised as fundamental to fostering an inclusive workplace culture. This commitment applies to Erste Group’s
employees and represents an ongoing initiative across all time horizons to prevent potential negative impacts. Workplace
discrimination can profoundly impact vulnerable groups of employees by fostering a hostile and unsafe work environment. These
issues can lead to heightened stress and anxiety, making these employees feel unsupported and excluded and might affect their
mental and physical health.
As a foundational measure, group-wide trainings on ‘Fostering Respectful Interactions’ and ‘Recognising and Preventing Sexual
Harassment’ are being implemented to raise awareness, build competencies and strengthen a shared understanding of respectful
workplace behaviour.
In Austria, the Anti-Discrimination Officer provides advice and mediates in cases of harassment, discrimination, or bullying.
Advice for employees is confidential and accompanied by a structured conflict resolution process, if required. The primary focus is
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on raising awareness and improving processes, behaviour and organisational issues among both management and employees. The
Anti-Discrimination Officer is also the contact person for all complaints and questions relating to harassment and bullying and
plays a key role in ensuring compliance with all human rights. All employees may seek advice in absolute confidentiality and
develop measures and resolution strategies in a collective process, the implementation of which is then supported by the Anti-
Discrimination Officer. Measures, remediation processes and consequences are described in the Works Agreement on Anti-
Discrimination and Respectful Behaviour in the Workplace which is communicated to the employees on Erste Group’s intranet.
An anonymised report prepared by the Anti-Discrimination Officer covers, among other things, the reported cases of
discrimination. The report is communicated to the Management Board, People & Culture department and the employees’ council.
Awareness-building and prevention measures implemented by the Anti-Discrimination Officer in cooperation with management
are instrumental for remediation. To support these efforts, unconscious bias training is offered to make employees aware of
unconscious prejudices and help them act more sensitively.
The Banca Comercială Română has specific procedures and guidelines in place, in line with EU and local legislation and has
established dedicated channels and processes to enable employees to raise their concerns and get negative impacts remedied. The
objectives of such guidelines and processes are to ensure a zero-tolerance policy for harassment in the workplace and to provide all
employees with the necessary tools to fully exercise their rights. All concerns and complaints regarding the harassment and
discrimination in the workplace are managed by a committee comprised of members representing Compliance, Legal and People
and Culture Divisions, all experts in equal opportunities. The Committee is responsible for receiving, investigating and solving
harassment and/or discriminations allegations. Each case is taken seriously and treated with promptness and confidentiality. If the
case is classified as a harassment incident, it may be subject to appropriate disciplinary sanction according to the provisions of the
Internal Regulation.
In Erste Bank Hungary, the Code of Ethics contains the discrimination- and harassment-related rules and procedures. There is
an anonymous reporting line where employees can report and describe their complaints. The compliance department is responsible
for exploring and assessing the situation. Any subsequent decisions are made by the Committee of Ethics.
Česká spořitelna's Code of Ethics and Work Rules is based on legislation and describes a zero tolerance for discrimination. At
Česká spořitelna, employees can report discriminatory or inappropriate behaviour to the internal ombudsman, the ethics manager,
or through the whistleblowing process. The internal ombudsman is an impartial body that discreetly handles employee complaints.
Each reported complaint is formally investigated by the internal ombudsman, who is specially trained in such investigation and
mediation. The whistleblower is guaranteed absolute anonymity and protection. The entire process is described in an internal
procedure.
In Slovenská sporitel’ňa, complaints can be reported via the whistleblower app EMUS or according to the valid procedure using
either the Head of HR Employee Care Department or the Head of local Unions. Reported concerns are officially investigated in the
Compliance and Human Resources departments. Investigation and mitigation are conducted by specifically trained persons in
absolute anonymity and protection. The process is described in the local procedure. Based on the Employee wellbeing strategy
SLSP introduced PEER TO PEER Program as a highest level of employee crisis intervention – 19 fully certified SLSP employees
have been trained as internal crisis intervention specialists and provide first detections across whole of Slovakia as a part its
voluntary mission.
In Erste Bank Croatia, discrimination complaints are processed in accordance with legal requirements and Erste Group values.
Any grievance can be filed with the‘Authorized person’ named by the Management Board. The ‘Authorized persons’ usually
include employees from Legal and People & Culture who ensure due process and provide support to employees. Special attention is
also paid to the implementation of prevention measures in close cooperation with the works council and other employee
representatives as well as management training programs, in particular the ‘Start program,’ where managers are trained in the core
values and obligations of Erste Group towards its employees.
In Erste Bank Serbia, members of the bank’s local People & Culture team mediate or take action in case of complaints. They also
track the frequency and type of complaints. To prevent unwanted behaviour and motivate employees to report any problem,
‘HeartCount’ was established in 2023. HeartCount is a communication tool between employees and Erste Bank Serbia. It enables
the bank to respond instantly, eliminating uncertainties at their source and preventing them from escalating into dissatisfaction.
Erste Bank Serbia uses HeartCount semi-transparently, with only part of the People & Culture team having access to the data,
while other employees can only view overall statistics. There is also an Anti-Bullying Counselling Centre, which is made up of bank
employees from the bank’s Trade Union Board. The Counselling Centre works in coordination with the Ministry of Labour and
Social Policy, the Labour Inspection and the Agency for the Prevention of Abuse at Work. The Centre monitors the resolution of
complaints filed. Complaints can also be submitted anonymously. Erste Bank Serbia has appointed an authorized individual to
receive information and conduct procedures related to internal whistleblowing, ensuring that whistleblowers are protected in
accordance with the law.
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S1-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS,
ADVANCING POSITIVE IMPACTS AND MANAGING MATERIAL OPPORTUNITIES
Target setting is an important practice in an organisation, as it helps to focus efforts and resources towards achieving specific goals.
While Erste Group does not set measurable targets to track the effectiveness of all policies and actions on the group level, Erste
Group has specific targets related to the material matter, gender equality and equal pay for work of equal value. Increasing the
number of women in top-management positively influence the unadjusted as well as adjusted pay gap. These targets are published
in the Group Diversity and Inclusion Policy and fosters equal professional development to ensure equal opportunities for all
genders.
On group level Erste Group wants to create equal opportunities regardless of gender and to remediate the impact of the gender pay
gap by balancing gender distribution in top-management positions (board level and B-1). Targets for local banks in Erste Group’s
core markets (Erste Group Bank AG, Česká spořitelna, Erste Bank Oesterreich, Slovenská sporiteľňa, Banca Comercială Română,
Erste Bank Hungary, Erste & Steiermärkische Bank (Erste Bank Croatia) und Erste Bank a.d. Novi Sad (Erste Bank Serbia)) in
areas of gender representation in management board positions and B-1 level management have been defined.
Erste Group sets targets only for gender equality matters because it gives the respective institutions in the group the freedom to
decide what the optimal goal is in their local environment for topics such as average training hours, percentage of part-time
employment, percentage of performance evaluation or average sick days. As Erste Group does not have any other targets related to
the other sustainability matters, it tracks the effectiveness of the policies and actions in relation to material IROs at group level via
its engagement survey. Qualitative analyses of employee surveys provide insight into the long‑term effectiveness of the measures
implemented. Recognised fields for improvement and results are transparent and available on Erste Group’s intrane t.
Target on gender representation in management boards and board-1
The target on gender representation in management boards aims at a minimum of 30% representation of the underrepresented
gender in management board positions by 2028 for each local bank in each core market.
The following target aims at a minimum of 33% representation of the underrepresented gender in board-1 positions by 2028 for
each local bank in each core market. These targets are linked to Erste Group’s Group Diversity and Inclusion Policy and Group
Suitability and Succession Policy and address the material matter, gender equality and equal pay for work of equal value. By setting
the targets to support women in the top-management position, Erste Group aims to mitigate the negative impact of the unadjusted
gender pay gap that is focused on the prevalence of men in better paid management job roles.
The Group Diversity Management team within the People & Culture department reviewed the proportion of women in
management positions over previous years and assessed the need for target setting for local banks in core markets. Employees or
workers’ representatives were not involved in the process of setting these targets. Given the low number of B-1 positions and
limited turnover in these roles, targets were defined with a medium-term perspective. Considering the different starting points
across individual banks, a target of 33% for the B-1 level was agreed upon after alignment with the Holding Board. These targets
have been formally embedded in the Group Diversity and Inclusion Policy. Performance against these targets is monitored
quarterly by the Group Diversity team in collaboration with local diversity teams. In case of deviations, the teams jointly analyse
underlying reasons and identify measures for improvement.
The target encompasses the following local banks in core markets: (Erste Group Bank AG, Erste Bank Oesterreich, Česká
spořitelna, Banca Comercială Română, Erste Bank Hungary, Slovenská sporiteľňa, Erste & Steiermärkische Bank (Erste Bank
Croatia) and Erste Bank a.d. Novi Sad (Erste Bank Serbia)).
For six years, Erste Group has utilised dashboards to measure progress. The first diversity policy was introduced in 2017 with one
common target for entities in scope valid for both board members and B-1. The most recent major update of the diversity targets
was carried out in 2023. As baseline values for individual targets per entity in scope, separately for gender representation by board
members and B-1, the values of 2022 were considered (28% share of women in top-management). The current target horizon
extends until 2028.
The Group Diversity’s proposal for diversity targets in top management was approved by the Holding Board, following an analysis
of the current situation at the banks in the core markets. In 2025, no adaptations were made to the targets. Since the targets are set
until 2028 (medium-term), there is no need to update them regularly unless a new regulatory change or a change in strategy occurs.
The diversity dashboards are updated quarterly and made available to top management on an ongoing basis.
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Proportion of women in top-management

| Underrepresented gender in management board | Underrepresented gender in board -1
| 2022 | 2023 | 2024 | 2025 | Minimum target by 2028 | 2022 | 2023 | 2024 | 2025 | Minimum target by 2028
Erste Group Bank AG | 16.7% | 16.7% | 20.0% | 20.0% | 30.0% | 17.9% | 30.8% | 30.8% | 33.3% | 33.0%
Erste Bank Oesterreich | 50.0% | 50.0% | 50.0% | 66.7% | 30.0% | 26.9% | 43.5% | 47.6% | 37.0% | 33.0%
Erste Bank Hungary | 20.0% | 16.7% | 16.7% | 16.7% | 30.0% | 34.5% | 37.0% | 32.1% | 31.3% | 33.0%
Česká spořitelna | 16.7% | 16.7% | 16.7% | 16.7% | 30.0% | 20.0% | 13.0% | 20.0% | 26.2% | 33.0%
Slovenská sporiteľňa | 0.0% | 0.0% | 0.0% | 0.0% | 30.0% | 34.6% | 33.3% | 29.2% | 32.0% | 33.0%
Banca Comercială Română | 60.0% | 60.0% | 50.0% | 60.0% | 30.0% | 26.1% | 34.8% | 33.3% | 26.1% | 33.0%
Erste Bank Croatia | 0.0% | 0.0% | 20.0% | 20.0% | 30.0% | 43.5% | 43.5% | 43.5% | 40.9% | 40.0%
Erste Bank Serbia | 50.0% | 50.0% | 50.0% | 50.0% | 30.0% | 40.0% | 50.0% | 47.8% | 52.2% | 33.0%

Targets are monitored and reviewed quarterly. No straight linear progress has been expected as it needs to be considered hand in
hand with succession planning for top-management positions. Erste Group believes that the progress of proportion of
underrepresented gender in Management Board is on the right track and with effective succession planning the goal in 2028 can be
reached. Some of the banks already reached the targets of 30% women in management board, whereas Erste Bank Hungary, Česká
spořitelna, Erste Bank Croatia and Erste Group Bank AG are on their way to reach the goal. Slovenská sporiteľňa needs to catch up
in both in management board and board-1 in the following years. When it comes to board-1 positions, some fluctuations from one
year to another are acceptable, as a positive trend towards reaching the goal in four years’ time is anticipated.
S1-6 – CHARACTERISTICS OF THE UNDERTAKING'S EMPLOYEES
As of the end of the reporting period , 31 December 2025, Erste Group had 49,024 (2024: 49,094) employees. Employees are actively
undertaking business activities or rendering service to the reporting company based on their job role for which they are
compensated in form of remuneration in line with the Group Remuneration Policy. Number of employees includes also long-term
sick leave employees, interns, trainees and apprentices
Data is reported in headcounts (one person = one headcount, irrespective of the number of hours worked) as of the end of
reporting period. The headcount measure is the relevant metric for labour law and offers a better representation when it comes to
material topics such as training, diversity, health and safety than full-time equivalent measures. The headcount provides a full
picture of an organisation’s diversity as well as training and skills development efforts irrespective of hours worked. The
measurement of all own workforce metrics has not been validated by an external body.
Employee headcount broken down by gender

Gender | 2024 | 2025
Male | 18,628 | 18,780
Female | 30,465 | 30,244
Other | 1 | 0
Not reported | 0 | 0
Total employees | 49,094 | 49,024

E mployee headcount in Erste Group by countries

Countries | 2024 | 2025
Austria (incl. branches in New York and Hongkong) | 19,952 | 20,111
Czechia | 10,374 | 10,097
Romania | 5,259 | 5,158
Hungary | 3,553 | 3,603
Slovakia | 3,536 | 3,647
Croatia | 3,148 | 3,102
Serbia | 1,287 | 1,292
North Macedonia | 655 | 665
Bosnia and Herzegovina | 521 | 536
Slovenia | 399 | 403
Montenegro | 374 | 373
Poland (Erste Securities Polska) | 36 | 37

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The majority of Erste Group’s workforce hold a permanent contract. A permanent (unlimited) contract of employment is a contract
of unlimited duration including all new employees currently on their probation period who are likely to have their contract made
permanent. Temporary employees have limited contracts, here Erste Group includes for instance, interns or some service positions.
Most of the active headcount are full-time employees, defined as those with 100% occupancy, i.e. FTE = 1. In some countries where
Erste Group operates, its employees use the flexibility of part-time work in more extent than in others.
In Slovakia, Erste Group employs non-guaranteed hours employees, working under agreements on work performed outside an
employment relationship according to the Slovak labour code. These contracts speculate the maximum working hours and the
agreed amount of working time in the contract shall not be considered as an obligation to work a certain number of hours.
Therefore, reported as non-guaranteed hours employees from reporting year 2025 (in 2024 Slovenská sporiteľňa reported 144 non-
guaranteed hours employees).
E mployee headcount by contract type, broken do wn b y gender

Headcount | Female | Male | Other | Not reported | Total
2025 |  |  |  |  |
Total number of employees | 30,244 | 18,780 | 0 | 0 | 49,024
Number of permanent employees | 28,130 | 17,621 | 0 | 0 | 45,751
Number of temporary employees | 1,994 | 1,052 | 0 | 0 | 3,046
Number of non-guaranteed hours employees | 120 | 107 | 0 | 0 | 227
Number of full-time employees | 23,142 | 17,477 | 0 | 0 | 40,619
Number of part-time employees | 6,982 | 1,196 | 0 | 0 | 8,178
2024 |  |  |  |  |
Total number of employees | 30,465 | 18,628 | 1 | 0 | 49,094
Number of permanent employees | 28,200 | 17,416 | 1 | 0 | 45,617
Number of temporary employees | 2,265 | 1,212 | 0 | 0 | 3,477
Number of non-guaranteed hours employees | 0 | 0 | 0 | 0 | 0
Number of full-time employees | 23,635 | 17,408 | 0 | 0 | 41,043
Number of part-time employees | 6,830 | 1,220 | 1 | 0 | 8,051

Employee turnover (including retirements)

| 2024 | 2025
New hires | 6,367 | 5,686
Female | 3,809 | 3,392
Male | 2,558 | 2,294
Other | 0 | 0
Gender not reported | 0 | 0
Leavers | 5,995 | 6,070
Female | 3,795 | 3,863
Male | 2,200 | 2,206
Other | 0 | 1
Gender not reported | 0 | 0
Turnover ratio (%) | 12.2% | 12.3%

*Turnover ratio includes employees who leave voluntarily or due to dismissal, retirement, or death in service.
In 2025, employee turnover at Erste Group (total of men and women) was 12.3% (2024: 12.2%). Turnover ratio presents the number
of employees who left voluntarily, due to dismissal, retirement or death in service during the fiscal year. The number of leavers
does not include employees on parental leave and internal transfers within the group. The employee turnover rate in percent is
calculated (based on the BDA formula) as follows: the number of employees who left the company during the reporting period (12
months) is divided by the average headcount (HC) of the reporting year.
Information about average FTEs can be found in the financial statements Note 8 to the Group Consolidated Financial Statements
2025. Using Full-time Equivalent for financial statements, especially in tracking administrative expenses, is generally more effective
than headcount as it better represents the cost of labour.
S1-7 – CHARACTERISTICS OF NON-EMPLOYEES IN THE UNDERTAKING'S OWN
WORKFORCE
In addition to own employees, there are 3,469 (2024: 3,104) non-employee workers (headcount as of 31.12.25), which are either self-
employed individuals (1,031; 2024: 1,099) or individuals contracted through a third party engaged in employment activity (2,438;
2024: 2,005). Non-employees are contracted for a specific period based on the conditions stated in their contract. As in Erste
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Group’s operations, employees’ contracts prevail over non-employees’ contracts, this group of workers represents only 7% (2024:
6%) of total own-workforce headcount. 61% (2024: 57%) of all non-employees in Erste Group are contracted for information
technologies (IT) departments. About 27% (2024:23%) of the non-employees in Erste Group work in Hungary. Most of them work in
the local IT functions (e.g. developer, tester, etc.) and in outsourced activities in the retail area, such as telesales or mobile bankers.
For non-employees, there are currently no policies, actions or targets in place, except for the Group Risk Policy Whistleblowing.
Thus, all policies are specifically addressed to Erste Group’s own employees. Additionally, actions, targets, metrics and engagement
and grievance mechanisms are designed to support and benefit its own employees.
S1-9 – DIVERSITY METRICS
Employee gender distribution at top management

| Top management (headcount) | Top management (share)
| 2024 | 2025 | 2024 | 2025
Female | 128 | 124 | 25% | 25%
Male | 374 | 363 | 75% | 75%
Other | 0 | 0 | 0% | 0%
Not reported | 0 | 0 | 0% | 0%
Total employees | 502 | 487 | 100% | 100%

The year-on-year decrease in the number of top-management functions (B0 & B-1) is attributable to the consolidation of B-1 mirror
positions in Erste Bank AG and Erste Bank Oesterreich. Although two B-1 functions continue to exist across two separate legal
entities, they are held by a single individual, counted as one top-management headcount.
Top management is defined as Erste Group Bank AG top management (Management Board (B0) and positions reporting directly to
the Management Board (B-1)), in Erste Group Bank AG, Erste Bank Oesterreich, Česká spořitelna, Banca Comercială Română,
Erste Bank Hungary, Slovenská sporiteľňa, Erste & Steiermärkische Bank (Erste Bank Croatia) and Erste Bank a.d. Novi Sad (Erste
Bank Serbia) and board members/managing directors (B0) of other subsidiaries with reported own employees. Top-management
distribution by gender is reported on headcount bases as of year-end.
The assumption is that board members/managing directors of each subsidiary, no matter the size, is a governing body responsible
for the development and success of the entity. They make decisions in the interests of the entity and its stakeholders and ensure
that their employees are supported in achieving the entity’s objectives.
Employee age distribution by age groups

| 2024 | 2025
| Number of employees (headcount) | Share of employees (headcount) | Number of employees (headcount) | Share of employees (headcount)
under 30 years old | 8,121 | 16.5% | 8,112 | 16.5%
between 30-50 years old | 28,231 | 57.5% | 27,102 | 55.3%
over 50 years old | 12,742 | 26.0% | 13,810 | 28.2%
Total employees | 49,094 | 100.0% | 49,024 | 100.0%

Employee age distribution by age groups is reported on headcount bases as of year-end.
S1-12 – PERSONS WITH DISABILITIES
The number of employees with disabilities in headcount (as of 31 December 2025 ) is collected using the definition based on the UN
Convention on the Rights of Persons with Disabilities. It defines persons with disabilities as those who have long-term physical,
mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective
participation in society on an equal basis with others. This can be reflected as percentage-based disability ratings or categorization
of severity.
Erste Group employs 651 ( 2024: 643) employees with health disability (disability above 50% or equivalent severity grade) as of
31 December 2025 which represents 1.3% (2024: 1.3%) of the total headcount.
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S1-13 – TRAINING AND SKILLS DEVELOPMENT METRICS
Material matter of training and skills development are tracked by average training hours metrics and the proportion of performance
reviews to the foreseen number of performance reviews by the management.
Training and skills development metrics

| 2024 | 2025
Average training hours per headcount | 39.4 | 39.5
Female | 40.1 | 40.8
Male | 38.2 | 37.4
Other | 68.0 | 0.0
Gender not reported | 0.0 | 0.0
Management functions | 43.5 | 43.8
Non management functions | 38.8 | 39.0

In 2025 , Erste Group’s employees completed on average 39.5 ( 2024: 39.4) hours of professional development, thereof women 40.8
( 2024: 40.1) hours and men 37.4 (2024: 38.2) hours. Employees in management positions completed an average of 43.8 (2024: 43.5)
hours of training. Erste Group monitors average trainings hours by collecting the information per year end for each entity and
comparing them to the previous year. The indicator is calculated as the number of training hours in the reporting period of its
employees’ headcount as of 31. December divided by the total headcount as of 31. December. There is no targeted value on the
group level, as for each entity the optimal number of trainings hour might be different. Moreover, the number of training hours
may fluctuate throughout the years, as some regulatory training may be required.
Next to employee and leadership development, leadership feedback and enhancing of Data and AI knowledge, performance
reviews are one of Erste Group’s actions to address the material matter of training and skill development identified in the double
materiality assessment.
Generally, employees are invited to a personal performance review with their line managers to talk about their performance, to
define goals for the current year and define plans for their further personal development once a year. However, not for all own
employees is the performance review planned or foreseen. For instance, when an employee joins the company within the year or
when internal procedures foresee that an annual performance review is mandatory only for employees eligible for a bonus. In 2025,
appraisal talks were held with 88.7% (2024: 87.9%) of all employees of Erste Group. The figure is reported as the number of
performance reviews per active headcount (as of 31. December) during the reporting period divided by the number of total
headcount (as of 31. December).
The proportion of reviews to the foreseen number of reviews by Erste Group’s local internal procedure is 98.9% (2024: 97.1%). This
figure has been derived as number of performance reviews per active headcount (as of 31. December) during the reporting period
divided by the number of headcount scheduled for performance review based on internal processes (e.g. based on eligibility for
variable remuneration).
Performance reviews

| 2024 | 2025
Percentage of employees that participated in regular performance and career development reviews | 87.9% | 88.7%
Female | 87,4% | 89.0%
Male | 88,7% | 88.2%
Other | 0.0% | 0.0%
Gender not reported | 0.0% | 0.0%
Management functions | 91.0% | 94.8%
Non management functions | 87,5% | 87.9%

S1-16 – REMUNERATION METRICS (PAY GAP AND TOTAL REMUNERATION)
Erste Group has identified a negative impact in relation to gender pay gap in the sustainability matter gender equality and equal
pay for work of equal value.
Erste Group’s approach is to understand the reasons for the gap and bring transparency to what part of the gender pay gap can be
explained and foreseen due to job structure and other explanatory factors. Erste Group established a methodology to analyse and
monitor the gender pay gap. It aligns on transparent communication and coordinate efforts to mitigate any potential negative
impacts on Erste Group’s workforce related to gender pay gap within Erste Group.
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Erste Group holds a Fair Pay Analyst certification from the Fair Pay Innovation Lab, with its UNIVERSAL FAIR PAY CHECK®
recognised as a certification trademark by the European Union Intellectual Property Office. This check integrates different
European legislative initiatives into a single procedure, accommodating both current and future legislation, making certification
possible regardless of location and applicable laws. The analysis, based on the organisation’s internal data, lays the groundwork for
accurately determining the necessary steps to implement fair pay. Through this certification, Erste Group underscores its
commitment to conducting fair pay analyses correctly.
In Erste Group, the gender pay gap is viewed from two perspectives: an unadjusted pay gap and adjusted pay gap. The unadjusted
gender pay gap shows the percentage difference between the average gross pay for women and men. The adjusted gender pay gap
shows the percentage difference between the average gross hourly pay for women and men after accounting for factors that
typically influence pay. It is calculated using a regression analysis, which is a robust mathematical method to determine how each
variable affects each employee’s compensation. To support a common methodology over the group, job levelling is used as the main
objective factor. This factor explains most differences in pay. On top, age, management responsibility and country specific or even
entity specific factors are considered which reflect the local job market. In order to calculate the adjusted pay gap across the Group,
the country results were weighted according to the number of employees analysed.
Unadjusted gender pay gap
In Erste Group, the gender pay gap for its employees is calculated based on an annualized, full-time equivalent measure, as the
average pay of all men and women across the group and all job levels, representing the unadjusted gender pay gap. To ensure a
consistent and comparable representation across the diverse countries in which Erste Group operates, the Group‑level
consolidation is performed using a weighted‑average methodology. Individual entity results are weighted by their respective
headcounts, which also helps to eliminate differences in purchasing power between countries and provides a more accurate and
balanced Group‑wide view.
Unadjusted gender pay gap per country

Countries | 2024 | 2025
Erste Group | 28.9% | 27.7%
Austria (incl. branches in New York and Hongkong) | 24.8% | 24,6%
Czechia | 37.3% | 34.5%
Romania | 32.1% | 30.7%
Hungary | 34.4% | 32.9%
Slovakia | 41.0% | 38.4%
Croatia | 27.2% | 23.8%
Poland (Erste Securities Polska) | 57.7% | 51.7%
Slovenia | 20.8% | 19.8%
Serbia | 36.1% | 36.1%
Bosnia and Herzegovina | 35.7% | 36.2%
North Macedonia | 24.2% | 28.2%
Montenegro | 25.0% | 35.5%

*Gender Pay Gap figures may slightly vary from published by individual banks in core markets, as banks consolidate based on subsidiary ownership. The country view reflects the
geographical location of legal entity.
This unadjusted gender pay gap calculation for Erste Group’s own employees in 2025 was 27.7% (2024: 28.9%). This covers all own
employees in scope where remuneration data was available through payroll systems.
Variable remuneration is based on the overall performance of the entity and individual performance of each employee. It will be
awarded in April 2026. For the 2025 pay gap and remuneration ratio, an estimate of variable remuneration based on 2024
performance (awarded in 2025 ) was necessary to cover total compensation. For long-term incentive bonus schemes, the awarded
variable remuneration is reported, no matter if paid out in the reporting year or in the future.
Erste Group remains committed to progressively reducing the unadjusted Gender Pay Gap across the Group. Erste Group
acknowledges that variations in local market structures, regulatory frameworks and the composition of business areas, such as
varying gender representation in retail banking versus technology roles, can influence unadjusted pay gap outcomes.
Analysis of the gender pay gap
Erste Group conducts a more detailed analyses on a yearly basis, to ensure that men and women with comparable jobs or job
responsibilities and performing work of similar value are receiving equal pay. In 2024 , Erste Group started to analyse the wage data
of 38.195 employees across all its core markets and in 2025 increased the scope to 38.726 employees.
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Within this scope, the analysis revealed an average global gender-specific pay gap of about 25.9% in 2025 (2024: 26.8%), which is
greatly influenced by the distribution of functions among male and female staff. Having a gender pay gap does not mean that
women are paid less than men for the same job. Therefore, Erste Group also considers acceptable reasons that explain differences
in pay, such as job, experience, location and performance. Following the analysis of Erste Group employees, the adjusted gender
pay gap is 2.1% (2024: 2.5%). The Gender Pay Gap analyses shows that, the unadjusted pay gap is driven by job levelling as it is used
as the main objective factor. This factor explains most differences in pay. One of the ways Erste Group addresses this topic is by
setting the targets for gender representation in top management.
Remuneration ratio
Erste Group shows the income distribution within the company by comparing the annual total remuneration of the highest-paid
person with the median total annual remuneration of all employees in its core markets Austria, Czechia, Slovakia, Hungary,
Romania, Croatia, Serbia and all other countries in which Erste Group has subsidiaries. All salaries are calculated as annual
salaries on the basis of full-time equivalents. Variable remuneration paid out in 2025 is considered. For 3% (2024: 3%) of the
employees, their salaries were interpolated according to the salary distribution of the rest of the workforce. The remuneration ratio
for the 2025 fiscal year is 70.8 (2024: 67.5). It is calculated by means of the following formula: annual total remuneration of the
highest-paid employee of Erste Group (CEO) divided by the median annual total remuneration of all employees of the organisation
except for the highest-paid person. The calculation incorporates an estimated bonus for the highest earner, Erste Group (CEO),
reflecting the full contractual bonus potential together with the applicable bonus pool multiplier.
S1-17 – INCIDENTS, COMPLAINTS AND SEVERE HUMAN RIGHTS IMPACTS
Erste Group has reported on its approach to complaints, channels to raise them and on remediation of negative impacts in chapters
S1-2 and S1-3. Channels for raising concerns have been identified in each entity and the number of complaints submitted to the
company’s reporting tool has been recorded. There have been in total 28 (2024: 26) reported incident s of discrimination. The data
has been compiled in Erste Group’s reporting tool in accordance with the ESRS definition.
Entities within Erste Group have implemented processes to mitigate and solve discrimination cases. Erste Group’s commitment to
providing a safe and inclusive workplace means all claims of discrimination are taken seriously and Erste Group strives to resolve
them in a timely and effective manner. As part of these established processes, every employee has the opportunity to have their
specific case examined by internal, independent bodies. This ensures that each individual case is followed up accordingly, with
empathy and respect for all parties involved as well as utmost confidentiality.
Erste Group strives to resolve matters internally in a respectful manner and in most cases, this approach is successful. If an
employee is not satisfied with the outcome, they have the right to seek resolution through an external body. This reflects Erste
Group’s commitment to fostering a culture of trust, respect and equality throughout its organisation.
In 2025, the company received 156 (2024: 160) total complaints from its workforce regarding various topics related to unacceptable
behavior, discrimination, termination of employment and entitlements and workplace management, thereof 56 (2024: 84) in Česka
spořitelna. The higher number of complaints in Česká spořitelna reflects the high level of awareness and trust employees place in
the Ombudsman function. It demonstrates a strong culture of openness, where employees feel safe to speak up and seek resolution
internally. This proactive approach contributes to a respectful, inclusive and well-informed workplace environment. In 2025, the
number of complaints reported in S1-17 was reduced in Česka spořitelna due to a methodology alignment with Erste Group Bank
AG, so that it now relates only to complaints to its own workforce.
In both 2025 and 2024, there have been no fines, penalties, or compensation for damages resulting from incidents of discrimination
and complaints or relating to severe human rights issues or incidents connected to the company’s own workforce. No incidents
related to human rights have been reported in either 2025 and 2024.
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Affected communities
This chapter focuses on Erste Group’s impact on the communities it touches - defined as people whose community life is
influenced by the Group’s activities. It focuses on the sustainability topic of Social Banking, highlighting positive contributions such
as improving access to products and services for vulnerable groups and fostering financial inclusion.
S3 SBM-3 – MATERIAL IMPACT AND ITS INTERACTION WITH STRATEGY AND
BUSINESS MODEL

Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
S3- Social Banking (entity specific) | Positive impact | By ensuring that financial education programmes, as well as all banking products and services are accessible to marginalised individuals as well as underserved starting enterprises and social organisations/projects, Erste Group promotes their autonomy, social and professional integration and active participation in community life. | Downstream | All time horizons

SOCIAL BANKING (ENTITY SPECIFIC)
Providing support to society was one of the founding ideas of Erste Oesterreichische Spar-Casse and this continues to shape the
Group to this day. Erste Group’s responsibility goes beyond simply financial business to support institutions, initiatives and projects
relating to social issues. Therefore, an aspect of Erste Group’s strategy and business model is to provide financial services to socially
vulnerable people, small enterprises and social organisations (hereafter referred to as Social Banking clients), including those who
would otherwise be excluded from access to financial services, positively impacting those effected. Initiatives supporting the
financial health, transparency and inclusivity of these groups are key to its value proposition and helps build long-term
relationships while improving their financial autonomy and subsequent wider social impact through capacity building for small
enterprises and subsequent job creation and retention. Furthermore, Group Social Banking engages with various social
organisations to ensure the effectiveness of its impact throughout the regions it operates in. These efforts ensure a strong socio-
economic environment to form the basis for sustainable success.
S3-1 – POLICIES RELATED TO AFFECTED COMMUNITIES

Impacts, risks and opportunities | Strategy / Policy | Actions | Targets
By ensuring that financial education programmes, as well as all banking products and services are accessible to marginalised individuals as well as underserved starting enterprises and social organisations/projects, Erste Group promotes their autonomy, social and professional integration and active participation in community life. | Social Banking Strategy | Social organisations Microfinancing Time Bank FLiP (Erste Financial Life Park) Financial Literacy Workshops | Target on Social Banking financing volume Target on FLiP (Erste Financial Life Park)

SOCIAL BANKING
Social banking in Erste Group aims to generate an economic, social and environmental return as well as to support generating jobs
by financing social organisations, micro clients/starting entrepreneurs, private individuals and special impact projects with tailor-
made solutions and preferential offerings. Financing activities shall directly or indirectly aim to achieve the primary objectives:
_ Improving financial stability and inclusion for people on low incomes,
_ Enabling job creation and self-employment and
_ Fostering social innovations and enlarging the impact of social organisations.
Social banking at Erste Group seeks to strengthen and support communities in the regions where the Group operates in (Austria,
Czechia, Slovakia, Hungary, Romania, Croatia, Serbia), focusing on vulnerable groups who might otherwise experience social
exclusion and/or are at risk of poverty. This is achieved indirectly by supporting social organisations such as NGOs and social
enterprises in increasing their impact and directly by improving access to financial goods and services for vulnerable groups and
underserved enterprises. Indirect support focuses on enabling social organisations to deliver essential services and address social
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challenges more effectively. To achieve this, Erste Group provides them with financial instruments such as bridge and investment
loans and capacity-building programs. These measures help social organisations enhance their operational resilience, expand their
reach and amplify their social impact. Direct support targets individuals and small businesses such as starting entrepreneurs that
face financial exclusion.
This support contributes to the overarching goal of fighting poverty and increasing prosperity. In order to support sustainable and
inclusive/social investments, innovation and job creation, Social Banking benefits from support programs such as EIF guarantees
funded by the European Union under the InvestEU Programme. These overarching objectives are linked to specific targets that
Group Social Banking has set related to financing and job creation and retention. Further information on these targets can be found
under ‘S3-5 - Targets related to advancing positive impacts’.
Group Social Banking, which reports to the CEO is responsible for the overall implementation of the Social Banking Strategy. In its
impact report, Erste Group Social Banking publishes information related to its activities as well as the direct and intended
outcomes of its clients once every two years (the previous version of the Impact Report having been published in 2023). Data in the
2025 impact report was collected through 1,266 (1,190 in the 2023 Impact Report) interviews within its client base. Information
about the overarching Social Banking Strategy as well as the Impact Report are publicly available on Erste Group’s website.
S3-2 – PROCESSES FOR ENGAGING WITH AFFECTED COMMUNITIES ABOUT
IMPACTS
SOCIAL BANKING
Erste Group engages with affected communities through a combination of indirect engagement via social organisations and direct
engagement with vulnerable individuals and underserved enterprises on an ongoing basis. These processes aim to identify needs,
assess impacts and continuously improve the effectiveness of financial and non-financial support. Social Banking departments are
establishe d in all core markets w ith dedicated full-time employees. The Management Board is entrusted with the responsibility for
engaging with affected communities with regards to social banking.
Indirect engagement through social organisations
Social organisations such as NGOs and social enterprises act as key partners in reaching vulnerable groups and addressing social
challenges. Engagement occurs through partnership programs and advisory exchanges to understand emerging needs and to co-
design solutions. Capacity-building initiatives, including the High-Impact Enterprises Scaling Programme (Marc), launched in
2024, provide mentoring, training and technical support to strengthen business models and ensure financial sustainability for social
enterprises. Feedback mechanisms are integrated into the programs to ensure continuous improvement. The 2025 Social Banking
Impact Report includes findings from participating organisations, confirming the relevance and value of non-financial support in
improving operational resilience and social impact.
Erste Group is also a member of multiple national organisations, such as the Social Entrepreneurship Network Austria (SENA).
Direct engagement with vulnerable clients and underserved enterprises
Engagement with individuals and micro-entrepreneurs occurs through advisory and mentoring sessions in branches and online
which promotes active customer engagement and financial health. Financial education and readiness programs, including bespoke
counselling and training, promote financial literacy and strengthen the participants’ resilience.
Impact Assessment and Continuous Improvement
Erste Group monitors the effectiveness of its social banking activities through a structured impact assessment process. Every two
years, a comprehensive social impact assessment is conducted, including ex-post client surveys, to evaluate the outcomes of
financial and non-financial support. The results are published in the Social Banking Impact Report, which serves as a key tool for
transparency and accountability.
In 2025, the assessment included 1,266 (1,190 in the 2023 Impact Report) client interviews, which influences product design, risk
management and strategic priorities. For example, identified gaps in business know-how led to the development of the High-
Impact Enterprises Scaling Programme (Marc), which addresses capacity-building needs among social enterprises.
This ongoing evaluation process ensures that Erste Group’s social banking activities remain relevant and effective, while client
feedback indicates necessary steps to maximise positive impacts for customers and communities.
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S3-4 – TAKING ACTION ON MATERIAL IMPACTS ON AFFECTED COMMUNITIES AND
MANAGING THE EFFECTIVENESS OF THOSE ACTIONS
Social Banking identifies necessary and appropriate actions in response to actual impacts on the affected communities through
structured processes, with loan origination and monitoring strictly following Erste Group’s standards, as tailored in the Group
Social Banking Risk Policy.
Social Banking exists as a separate department within the group and is assigned a budget based on a proposal to the management
board. The following actions are taken in the reporting year and are also planned to continue in the future to bring a continuous
positive impact. The effectiveness of the following actions are tracked through the 2025 Social Banking Impact Report, including
feedback from the intended recipients in the form of surveys and interviews.

Sub-topic | List of key-actions | Policy
S3 - Social Banking (entity-specific) | Social organisations | Social Banking Strategy
Microfinancing | Social Banking Strategy
Time Bank | -
FLiP (Erste Financial Life Park) | Policy Framework
Financial Literacy Workshops | Social Banking Strategy

Social organisations
Erste Group supports social organisations such as NGOs and social enterprises through financial and non-financial measures
aimed at strengthening their capacity and impact in the communities where the Group operates. Social banking provides tailored
financial solutions to social organisations, including working capital loans, bridging loans and investment loans as part of the
ongoing operations. These offerings are supported by portfolio guarantees from the European Investment Fund (EIF) under the
InvestEU Programme, enabling preferential terms for eligible organisations. In addition, ERSTE Foundation provides a
complementary guarantee, allowing Erste Group to finance social organisations that are not covered by EIF guarantees.
Beyond financial products, Erste Group offers free non-financial support such as bespoke counselling, mentoring, training and
technical assistance for social and sustainable entrepreneurs. In 2024, Erste Group launched the High-Impact Enterprises Scaling
Programme (Marc), a capacity-building initiative designed to strengthen and scale social businesses across key markets, including
Austria, Croatia, Czechia, Hungary, Romania, Serbia and, starting next year, Slovakia. The Marc program addresses gaps in
business know how and funding by helping social enterprises develop sustainable operating models. It also fosters an ecosystem for
growth through knowledge exchange, networking opportunities and access to markets. The program’s objective is to enable high-
impact enterprises to achieve financial sustainability while amplifying their social impact.
Microfinancing
Erste Group’s social banking initiative includes financing entrepreneurs to fund starting enterprises and micros that are not
covered by regular retail business, specifically targeting clients who do not meet the eligibility criteria of the regular Retail Lending
Policy, as part of its ongoing operations. This initiative ensures that these individuals have access to necessary financial resources,
contributing to the economic stability and growth of their businesses.
Specific programmes include ‘Der Mikrokredit’ in Austria, which focuses on currently unemployed individuals and dedicated
financing initiatives in Slovakia, Romania, Croatia and Serbia. For example, in Romania, BCR Social Finance supports financially
excluded micros. In Serbia, the ‘Naše selo’ programme, in cooperation with Delta Holding, is dedicated to the restoration and
modernisation of villages.
Time Bank
Time Bank – the volunteering portal of Erste Group - makes a meaningful contribution to civil society by involving employees in
various forms of volunteer engagement, such as in-kind donations, collection campaigns, ad hoc aid initiatives, the implementation
of charitable ideas and marketing support for NGOs. Donating time has a tangible impact: it allows people to connect with others,
gain new experiences and improve the lives of those in need. It is a valuable and positive contribution to the well-being of civil
society and this engagement is continuously taking place in Austria.
FLiP (Erste Financial Life Park)
FLiP is a financial education project that offers a broad range of options aiming to promote access to products and services as well
as financial health with a focus on adolescents and young adults. In light of the rising levels of debt among young people, the need
for financial education initiatives is becoming increasingly evident. FLiP has played a leading role in the field of financial education
in Austria since 2016 and advocates on a socio-political level that financial education be included in the national curriculum.
Furthermore, FLiP played a key role in the development of the National Financial Literacy Strategy. Since April 2023, FLiP has
been a non-profit limited liability company and a wholly owned subsidiary of Erste Social Finance Holding GmbH, 49% of which is
owned by Erste Group and 51% by Erste Foundation. This step laid the foundation for the development of a social franchising
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system, which by 2025 included six social franchise partners. In 2025, the first FLiP locations operated by social franchise partners
were opened in Graz and Klagenfurt. For the purposes of CSRD reporting, FLiP is considered as a part of Erste Group’s value chain.
FLiP guided tours convey the importance of a successful financial life for people’s personal lives in a fun and interactive way. Since
FLiP opened its doors in October 2016, more than 109,000 (96,000 in 2024) visitors from all types of schools and age groups have
taken part in the interactive tours offered in Vienna. Supported by Erste Bank Oesterreich and the regional savings banks,
FLiP2Go, the mobile version of FLiP launched in April 2019, has attracted more than 55,000 (44,000 in 2024) visitors on its tours
across all of Austria. The success of the FLiP app can be measured using session tracking with the figure for 2025 sitting at 45,000
(20,648 in 2024). In 2025, the FLiP app even received the eAward. The eAward is an Austrian business award that has been
presented annually by Report Verlag since 2005 and honors outstanding IT projects. The number of downloads of FLiP’s teaching
materials also provides an indication of its reach as well as an alignment with its goal of advancing the field of financial education.
This number has gone up continuously since FLiP was first opened and has amounted to a total of 7,200 (6,900 in 2024) downloads
in 2025. The blog articles focusing on financial literacy from the ‘Geld und so’ series was viewed a total of 9,124 (8,813 in 2024)
times in 2025.
FLiP provides the colleagues responsible for financial education in countries in which Erste Group is active with all the content of
the FLiP app and supports them in developing a new language version. FLiP has not only expanded geographically in recent years;
the target groups reached by FLiP measures are also constantly being expanded. In addition to pupils, students, people in
education, refugees and migrants, FLiP is developing workshops, special tours and teaching materials for girls and women. In
addition, FLiP is the coordinator of FinEd4NPOs, an initiative aimed at improving financial literacy among women. The project
supports NGO workers, community leaders and volunteers by equipping them with the knowledge and tools to provide financial
education in their communities.
Financial Literacy Workshops
Erste Group promotes financial literacy and education in all its markets through structured workshops tailored to diverse target
groups as part of its ongoing operations. Delivered both online and in-person, these programs strengthen financial literacy and
equip individuals with practical tools for managing personal finances. The following are just a few examples of these initiatives.
In Croatia, Erste Bank’s School of Smart Finance offers free workshops for adults and school-aged students. Sessions last up to 120
minutes and are held in small groups to ensure effective learning. Participants gain hands-on experience with budgeting tools,
saving strategies and responsible spending habits.
In Romania, the Money School provides financial literacy education from kindergarten to adulthood. Supported by a dedicated
website, the program offers accessible resources to help users improve their financial health. LifeLab, a complementary initiative,
integrates financial literacy into school curricula and is available at www.lifelab.ro.
Financial Literacy Workshops for Children and Youth
In Slovakia, the FinQ program has been active since 2019, helping primary and secondary students develop financial competencies
alongside critical and systemic thinking. Structured around a competency framework (A1–B2), FinQ integrates financial education
with broader cognitive development across subjects.
In Serbia, Erste Bank runs both online and offline workshops for youth, alongside the four-year Money School project in
partnership with the Ministry of Education. The initiative includes a book, game and theatre play titled Guardians of the Dragon’s
Treasure, designed to make financial concepts accessible and entertaining.
Launched in 2025 in Romania, Zbor HUBs – community centres in nine locations nationwide - offer financial literacy classes for
youth. For schoolchildren, the Money School provides workshops and classes, particularly during the nation al ‘Different Week’
initiative. Complementary materials include the Kids and Money financial health game and a three-part storybook series titled
Well-Raised Money School Book, which introduces concepts of money and entrepreneurship in an engaging format.
In Croatia, a new Financial Literacy Program for Students is being developed, with the first workshops expected to launch in Q1
2026. The curriculum includes modules on personal finance, budgeting, debt management, investment and digital safety.
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S3-5 – TARGETS RELATED TO ADVANCING POSITIVE IMPACTS
SOCIAL BANKING
Target on Social Banking financing volume
Erste Group is committed to promoting social banking to improve access to products and services those who would otherwise be
excluded. The set targets directly support these objectives and contribute to the economic stability of communities. The targets for
social banking financing, job creation and retention as well as education support initiatives are related to measuring the
effectiveness of Erste Group’s Social Banking initiatives. The targets focus on Erste Group’s core markets (Austria, Czech Republic,
Slovakia, Hungary, Romania, Croatia and Serbia).
The target of social banking financing volume focuses on increasing access to financial services for individuals across all core
markets. This is achieved by financing social enterprises, micro companies, start-ups and individuals that do not meet regular retail
lending criteria. The target related to education support participants aims to increase capacity building abilities of organisations,
financial education and knowledge of employees and private individuals. These educational activities are organised and conducted
in all core markets. The target of job creation and retention refers to the number of jobs created or retained as a result of social
banking financing. This is assessed through regular surveys and reports. These targets are continuously monitored and evaluated to
ensure their effectiveness and positive impact through the performance indicators shown below. Targets were determined by
analysing historical performance and extrapolating future developments, taking into account the available resources and
operational capacities.
By promoting social banking and achieving these targets, Erste Group contributes to the financial health and economic stability of
its customers, ultimately leading to a better quality of life and a stronger market position.

| Metric | Baseline 2017 | 2024 | 2025 | Target 2025 | Target 2030
Social banking financing | in EUR million, cumulative | 115 | 713 | 814 | 650 | 1,000
Education support participants 1 | Number in thousand, cumulative | 7 | 90 | 111 | — | 80
Job creation and retention | Number in thousand, cumulative | 20 | — | 110 | — | 200

1 The target shows the total number of persons participating in educational activities organised or initiated by Group Social Banking.
Performance indicators
Erste Group has developed social banking yearly performance indicators. Part of them serve as a measure to track the progress of
the social banking targets, which have been set.
The individual yearly social banking performance indicators shown below measure the progress and summarise the social banking
targets. Social banking financing includes private individuals, microfinance, start-up financing and financing for social
organisations. The volume of social banking financing is reported quarterly by local entity departments to Erste Group.
The target for education support participants is based on the number of participants in educational activities organised or initiated
by social banking each year. The number of educational support participants is reported annually by local entity departments.
Job creation and retention are assessed through the social banking impact report, performed every second year based on a
representative sample of social banking clients. Due to this data only being collected once every two years, the figure in the table
represents a cumulative number of both this year and the previous year. The number of created or preserved jobs is calculated
using survey results from the previous year and is therefore estimated data.
The financing provided to financial individuals in difficulty (as a part of the total of the sum of social banking financing volume) is
presented in ‘S4-5 Targets related to managing negative impacts and advancing positive impacts’.
Calculation of indicators
The number of newly created or preserved jobs is calculated in two steps. First, the average number of jobs per client based on
survey responses is determined. Then this average is multiplied by the total number of new financed clients within each segment,
country, and timeframe. The data is not validated by an external body.
The overall number of created and preserved jobs is determined using the following formula: Jobs created or preserved = Jobs
created or preserved through 2023 + Average jobs created or preserved by interviewed clients X all new financed Social Banking clients
in 2024-2025
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Social Banking yearly performance indicators

| 2024 | 2025
New social banking financing in EUR million | 97.7 | 101.4
New social banking financing in number of new clients | 2,078 | 2,208
Microfinance and start-up finance in EUR million | 55.4 | 53.4
Microfinance and start-up finance in number of new clients | 1,879 | 1,712
Social organisation finance in EUR million | 42.3 | 44.6
Social organisation finance in number of new clients | 199 | 182
Number of education support participants | 18,367 | 20,930
Number of preserved and created jobs (cumulative) | — | 110,531

Target on FLiP (Erste Financial Life Park)
FLiP is a financial education project that offers a wide range of options for promoting financial literacy, with a focus on teenagers
and young adults. The success of this initiative can be measured by the reach achieved among these groups. The goal of reaching a
total of 15,000 visitors in 2025 was achieved and even exceeded with over 17,000 visitors (16,302 in 2024). The goal for the FLiP app
was to reach 20,000 sessions. In 2025, over 45,000 (20,648 in 2024) sessions were recorded, exceeding the set goal by twice as much.
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Consumers and end-users
This chapter focuses on Erste Group’s impacts on consumers and end-users. The scope of this chapter covers the impacts that Erste
Group has identified towards the company’s retail customer base. As part of Erste Group’s commitment to transparency and
sustainability, Erste Group places the interests and needs of its customers at the core of its business activities.
Erste Group identified a positive impact on the financial health of its vulnerable customer base. Furthermore, Erste Group
r ecognised a potential negative impact on the topic of privac y that will also be disclosed in this chapter.
S4 SBM-3 – MATERIAL IMPACT AND THEIR INTERACTION WITH STRATEGY AND
BUSINESS MODEL

Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
S4-Financial health (entity specific) | Positive impact | Through educational programs, financial advice and tools Erste Group has a positive impact on the financial health of customers contributing to customers overall economic stability, leading to a better quality of life. | Portfolio | All time horizons
S4-Privacy | Potential negative impact | Data breaches or cyberattacks could lead to compromised sense of security and privacy for individuals, leaking private and financial data of affected customers. | Portfolio | All time horizons

FINANCIAL HEALTH (ENTITY SPECIFIC)
Financial Health serves as an aspect of Erste Group’s strategy , positively impacting financially vulnerable customers through
offering financial services to individuals that would otherwise be excluded as well as access to financial literacy programmes. These
ongoing programmes develop a combination of financial awareness, knowledge, skills, attitudes and behaviours necessary to
achieve individual financial well-being. Examples of financially vulnerable clients include those who are unable to meet debt
repayments as well as those who experience financial exclusion and a lack of financial literacy. The outcomes of actions to improve
the financial health of customers continuously influence Erste Group’s strategy and business model. Further information regarding
actions and outcomes can be seen under ‘S4-4 - Taking action on material impacts’.
PRIVACY
Handling customer data is a crucial part of Erste Group’s business model. As such, the company is dedicated to protecting this data
and must be vigilant about potential data breaches or cyberattacks. Examples of this are identity theft, fraud and financial loss.
Such incidents could compromise the security and privacy of customers by exposing their private and financial data. Data breaches
and cyberattacks can potentially affect all customers whose personal data is processed by the bank. The outcomes of actions to
address data breaches and cyberattacks continuously influence improvements to Erste Group’s strategy and business model.
Further information regarding actions and outcomes can be seen under ‘S4-4 - Taking action on material impacts’.
S4-1 – POLICIES RELATED TO CONSUMERS AND END-USERS

Impacts, risks and opportunities | Strategy / Policy | Actions | Targets
Through educational programs, financial advice and tools Erste Group has a positive impact on the financial health of customers contributing to customers overall economic stability, leading to a better quality of life. | Social Banking Strategy Zweite Sparkasse Strategy | Private Individuals Zweite Sparkasse Financial Literacy | Target on Social Banking financing volume (see S3-5 - Targets for affected communities) Zweite Sparkasse Target
Data breaches or cyberattacks could lead to compromised sense of security and privacy for individuals, leaking private and financial data of affected customers. | Group Security Strategy Group Data Protection Policy Group Cybersecurity Policy | Cyber Security and Data Protection, Employee Trainings | No target

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FINANCIAL HEALTH (ENTITY SPECIFIC)
Erste Group improves the financial health of its vulnerable customers by providing access to financial goods and services for groups
who might otherwise be excluded, offering them financial products, sound financial advice as well as mentoring. As part of its
Social Banking strategy, Erste Group supports individuals currently in financial difficulty by providing these customers with the
essential tools, such as financial literacy programmes and debt counselling to enhance their knowledge. The Group then guides
them through important decisions that allow them to improve their financial health. This support contributes to the overarching
goal of fighting poverty and increasing prosperity. Further information related to the Social Banking Strategy can be found under
‘S3-1 - Policies related to affected communities’.
The Zweite Sparkasse strategy focuses on financial inclusion and providing services to people without access to regular banking,
and is directly tied to the defined positive impact of improved accessibility, which promotes autonomy, social/professional
integration and participation. Zweite Sparkasse is a fully-fledged Austrian credit institution with an established strategy and policy
framework. The institution is governed by a dedicated Managing Board, which holds full responsibility for the strategic direction
and policy oversight. This governance structure ensures that Zweite Sparkasse operates in alignment with its social mission and
regulatory obligations. Information about the Zweite Sparkasse Strategy is publically available on its website.
PRIVACY
Erste Group prioritises the protection of customer data, recognising that the right to data protection is enshrined in the EU Charter
of Fundamental Rights. The Group Security Strategy outlines the Group Security Principles that serve as a foundation for reasoning
and decision making regarding the direction of Group Security. These five principles are as follows:
_ Security as a part of Erste DNA to involve and train key business areas to integrate ‘security and resilience by design’ in major
critical processes and trends.
_ Striving simplicity to reduce interfaces, roles involved, approvals/reviews required, data sources and user interactions in the
security process.
_ Data Driven Security to govern security maturity and compliance that is supported by the collection and analysis of real raw
data directly from Group security solutions rather than information interpreted and delivered by key people.
_ Risk integration to prioritise the implementation of new/enhanced controls, using the group’s Cyber Risk Profiles for decision
making.
_ Customer orientation to provide improved customer experience across key security processes and tools as well as in the
execution of key operations.
These principles rest on collaboration within the group through in-person and online channels as well as an emphasis on the
responsibility for security being shared by all employees. The Group Security Strategy is approved by the Management Board and
aligned with regulatory standards, specifically the objectives of international instruments such as the GDPR, which aims to protect
individuals in regard to their personal data.
Additionally, many security policies and procedures govern security-related requirements and controls for systems, infrastructure
and Erste Group’s own employees to protect the data of its customers. Compliance with these policies is mandatory for Erste Group
Bank AG, their relevant security entities as well as all subsidiaries of the Group. Further details on the specifics of these policies as
they relate to Data Protection and Cybersecurity are outlined below under the relevant sub-heading.
Erste Group places significant emphasis on providing customers with clear and comprehensible information regarding the
processing of their personal data. Where necessary, prior consent for the processing of personal data is obtained. Further
information related to data protection is made available to Erste Group’s customers on the website. This includes the rights of its
clients regarding their data as well as whom to contact in case of any concerns related to data processing or potential breaches.
Erste Group ensures that employees are well-informed about the implementation of Group policies related to privacy through
yearly trainings. This comprehensive understanding enables Erste Group’s staff to better serve its customers by adhering to high
standards of service and data protection. Consequently, these policies directly support Erste Group’s commitment to meeting the
needs and rights of its customers, while mitigating the potential negative impact of any cyberattacks or data breaches.
Group Data Protection
Erste Group’s Group Data Protection Policy, along with its associated procedures, aim to ensure and sustain the appropriate
safeguarding of all personal data in alignment with both regulatory requirements and business needs. This objective is focused on
achieving compliance with the General Data Protection Regulation (GDPR). In alignment with the GDPR, the focus of the Data
Protection Policy is the personal data of natural persons. Additionally, personal data pertaining to natural persons acting for or on
behalf of a legal person are included within the scope of this policy. The relevant local Data Protection Management department is
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responsible for monitoring data breaches while the Group Data Protection Officer ensures a consistently high level of data
protection throughout Erste Group at both local and group levels.
In addition to the Data Protection Policy, the following mandatory requirements ensure that data protection governance is
effectively implemented across the Group:
_ Data Controller Responsibility Procedure: The Data Controller Responsibility Procedure aims to ensure the adequate
protection of all personal data and information assets to meet regulatory and business requirements in data processing. The
standards require data privacy by design and by default, records of processing activities, technical and organisational security
requirements (including data secrecy), responses to data breaches, data protection impact assessments and awareness and
training programmes.
_ Data Protection Officer Procedure: The Data Protection Officer Procedure outlines detailed provisions governing the tasks
and other legal functions related to data protection.
_ Data Processing Legitimacy Procedure: The Data Processing Legitimacy Procedure sets out the fundamental principles for
data processing, including data transfer and storage limitations. The standards cover, among other things, key prerequisites for
processing personal data, the commissioning of processors, data transfers to third countries or international organisations as well
as time limits for data storage and deletion.
_ Transparency and Data Subjects Rights Procedure: The Transparency and Data Subjects Rights Procedure defines the
functions and conditions relating to data processing transparency and the rights of affected individuals.
Cyber Security
Cyber security of Erste Group operates under a robust set of cyber security policies and procedures. The Group Cyber Security
Policy outlines clear objectives, governance structures and technical safeguards to protect customer data and assets. The
overarching objective of the cyber security framework is to protect all types of information assets from cyber threats. Additionally, it
outlines the organisational structure, related roles and responsibilities as well as definitions and implementation activities to be
performed at both group and local levels. Due to the dynamic nature of cyberthreats, Erste Group’s Cyber Security Policy is
annually reviewed and aligned to reflect developing technologies, or changing legal or regulator requirements like the Digital
Operational Resilience Act (DORA).
The Group Chief Information Security Officer (Group CISO) is specifically accountable for cyber and information security control
and management within Erste Group, including the definition of Erste Group’s cyber and information security strategy. A primary
task of the Group CISO is to monitor and support the local implementation of cyber and information security, ensuring it follows
‘good practices’ and is executed effectively, efficiently and consistently in daily operations.
The rules and requirements stipulated by the Cyber Security Policy are binding for all Erste Group employees, contractors or
service providers who implement, manage or operate ICT solutions used by or for Erste Group entities, their employees and
customers.
S4-2 – PROCESSES FOR ENGAGING WITH CONSUMERS AND END-USERS ABOUT
IMPACTS
FINANCIAL HEALTH (ENTITY SPECIFIC)
Both direct and indirect engagement is undertaken by the Group to gain insight into the perspectives of vulnerable retail
customers. As detailed in ‘S3-2 - Processes for engaging with affected communities about impacts’, the effectiveness of the Group’s
financial health initiatives are monitored through a Social Banking Impact Report, published every two years (the previous version
having been published in 2023), that includes client surveys to evaluate the outcomes of financial support for vulnerable customers.
In 2025 the impact report included 158 (162 in the 2023 impact report) client interviews with individuals in financial difficulty that
provided insight into how Group initiatives contribute to improving the financial stability of these individuals. The results of this
assessment influence product design, risk management and strategic priorities. For further details on the impact report, as well as
social banking engagement with clients, refer to ‘S3-2 - Processes for engaging with affected communities about impacts’. Group
Social Banking is the department responsible for ensuring engagement with the Erste Group’s vulnerable retail customers occurs.
PRIVACY
The processes surrounding the GDPR are regulated and thus are valid for all customers, regardless of their background. Therefore,
Erste Group does not directly engage with its customer base for insight into an already heavily regulated process. For further
information please refer to chapter ‘S4-3 - Processes to remediate negative impacts and channels for consumers and end-users to raise
concerns’.
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S4-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR
CONSUMERS AND END-USERS TO RAISE CONCERNS
PRIVACY
Data breaches are defined as breaches of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised
disclosure of, or access to, personal data transmitted, stored or otherwise processed. The reasons for a data breach can vary, e.g.
from an email sent erroneously to the wrong recipient, to a system malfunction. Data breaches can be detected through internal
technical or organisational measures (e.g., through the data leak prevention system or through internal reports from employees
that became aware of the data breach) or through external reports (e.g., through a notification from the wrong recipient).
Reported data breaches are handled by expert teams who assess the potential risks using an internally developed data breach risk
assessment tool, based on the methodology provided by the European Union Agency for Cybersecurity. Remedial action is taken by
active engagement, such as directly contacting the person who reported or caused the data breach and instructing them on how to
remediate the threats to the rights and freedoms of the data subjects. The relevant actions range from deleting data to changing
passwords or giving general advice on how to secure data or how to adapt processes to make them even more data-protection
friendly. Refresher courses and ultimately disciplinary measures are also actions that help to prevent data breaches and mitigate
the associated risks. Developing and refining Erste Group’s response to data breaches and cyberattacks is a crucial element of its
risk mitigation efforts. This includes clear protocols for identifying, reporting, investigating, lessons learned and mitigating any
potential negative impact on customers.
Erste Group’s Contact Centre is the first port of call for instant customer support, playing a crucial role in maintaining strong
business relationships. Available 24/7 and reachable by telephone and e-mail, the Contact Centre ensures that Erste Group’s clients
receive timely and effective assistance. Complaints raised by the customer base are seen as a crucial in helping to refine and
improve upon processes in place. For specific privacy-related matters, contact details are provided online and in the data protection
notice. Further reinforcing Erste Group’s commitment to transparency and trust in its business interactions, customer complaints
can be reported on an anonymised basis via a whistleblowing platform (for more information, see chapter G1-1). In 2025 0.28%
(0.33% in 2024) of group customer complaints were related to privacy matters. Furthermore, research is conducted into the levels of
satisfaction with the customer complaints processes to determine effectiveness as well as their overall levels of usage and
knowledge of the channels available. This information is collected in the form of structured online interviews targeted at those who
have submitted complaints. Further trust of these processes is facilitated through reporting on an anonymised basis. Any
complaints involving Erste Group’s business relationships can also be made through Erste Group’s call centre and online, with
each complaint being treated as important with the aim to resolve them in the best possible way. Information on how to contact the
service is publicly available on Erste Group’s website.
S4-4 – TAKING ACTION ON MATERIAL IMPACTS ON CONSUMERS AND END-USERS
AND EFFECTIVENESS OF THOSE ACTIONS
Erste Group’s various initiatives promote the financial health of vulnerable clients , while also mitigating the potential negative
impact of data breaches and cyberattacks. These actions are designed to address the diverse needs of different demographic groups,
from individuals facing financial exclusion to clients at risk of data or cybersecurity breaches. Continuous monitoring, regular
assessments and stakeholder engagement are integral to ensure the effectiveness and adaptability of these actions. By focusing on
education, financial stability and social innovation, Erste Group aims to create a positive and lasting impact on its customer base.
Resources for actions related to financial health and privacy are allocated within the respective teams at both group and local levels.
All the following actions are performed on an ongoing basis. In 2025 there were no incidents of severe human rights abuses
towards the Group’s retail customer base.

Sub-topic | List of key-actions | Policy
S4-Financial health (entity specific) | Private Individuals | Social Banking Strategy
Zweite Sparkasse | Zweite Sparkasse Strategy
Financial Literacy | Overarching group objective
S4-Privacy | Employee Trainings | Group Security Strategy
Cyber Security and Data Protection | Group Cyber Security Policy, Group Data Protection Policy

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FINANCIAL HEALTH (ENTITY SPECIFIC)
Private Individuals
Erste Group supports financially vulnerable individuals who might otherwise be excluded from basic financial services, as part of
its ongoing operations. The aim is to improve financial inclusion and stability through tailored financial products and
complementary non-financial support. Group Social Banking offers specialised accounts, housing microloans and education loans
to help individuals manage unexpected financial challenges and gain access to social/affordable housing and education. In
Romania and Austria, study loans enable access to higher education, while housing programs in several countries provide solutions
for affordable living.
To strengthen financial health and resilience, Erste Group provides debt counselling, financial education and advisory services. For
example, Slovenská sporiteľňa offers debt counselling to help low-income customers manage household finances and reduce over-
indebtedness. These initiatives aim to empower individuals to take control of their financial situation and improve long-term
stability.
T he effectiveness of these initiatives are monitored through the Social Banking Impact report based on client feedback. In 2025 the
results found that 83% of clients were now able to pay their debt obligations on time as a result of Erste Group’s support, based on a
sample group that would originally have been unable to do so. This metric is based on a survey provided to 158 (162 in the 2023
Impact Report) clients of Social Banking.
Zweite Sparkasse
Based in Austria, Zweite Sparkasse seeks to address social challenges and acknowledge the dignity of every individual. The goal of
Zweite Sparkasse is to permanently reintegrate its customers into organised economic conditions. This is achieved by providing
financial services to anyone who cannot find a partner to take control of their financial life. Customer eligibility is determined by
partner social organisations that specialise in providing financial guidance and support to people facing financial difficulties.
Zweite Sparkasse has confidence in the expertise of these partners and collaborates closely with them in providing customer
service.
Support for vulnerable customers contributes to Erste Group’s positive impacts through improving their accessibility to financial
products and services which creates a deeper understanding of steps they can take to improve their own financial health and
stability. The effectiveness of this action is monitored by the number of new clients that Zweite Sparkasse reaches each year. More
information on this target can be found under ‘S4-5 - Targets related to managing material negative impacts and advancing positive
impacts’.
Financial literacy
Financial Literacy Workshops
Erste Group promotes financial literacy in all its markets through structured workshops tailored to diverse target groups as part of
its ongoing operations. Delivered both online and in-person, these programs strengthen financial literacy and equip individuals
with practical tools for managing personal finances.
In Austria, the ongoing financial education initiative ‘she inves ts’ offers female customers an opportunity to improve their
financial knowledge and make informed decisions. The program addresses persistent gender gaps in financial literacy through
targeted workshops and events, including three online and one in-person session annually, along with a monthly newsletter
covering relevant financial topics. The initiative ensures unbiased treatment of female customers by providing equal access to
financial education resources, regardless of background or financial status.
Erste Group tracks the effectiveness of the ‘she Invests’ initiative through obtaining qualitative feedback from participants, as well
as tracking engagement in the programme, which typically is around 1,000 participants. Resources allocated to this initiative are
split between Group Diversity and the Group Communications and Marketing departments.
PRIVACY
Cyber Security and Data Protection
Erste Group’s proactive approach reflects its deep dedication to have the trust of its customers, partners and stakeholders. It
continuously invests in advanced and innovative technologies, robust infrastructure and expert teams to ensure that all the data of
Erste Group is handled in a secure and confidential manner. In todays increasingly digital banking world, Erste Group is
committed to protect its assets and customer data with state-of-the art cyber security services and tools. Erste Group’s multi-layer
security architecture includes, for example, advanced firewall technologies, distributed denial of service (DDoS) protection,
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comprehensive endpoint detection and response (EDR) solutions, cyber threat intelligence (CTI), security operation centre (SOC)
as well as robust intrusion prevention systems (IPS).
A specific Control Framework is used for the core markets to ensure ongoing adherence to cybersecurity and data protection
standards and to identify any areas requiring improvement. The design and execution of the control framework is derived from
requirements defined in the Group Cyber Security and Data Protection Policies and Procedures. The scope of the control
framework is to monitor the proper implementation of policy and procedure requirements. A self-assessment is done on a local
level and afterwards approved on group level. Continuous monitoring also includes the regular reporting of groupwide Key
Performance Indicators by Local entities to identify the effectiveness of implemented preventive, detective and corrective measures.
Furthermore, Erste Group publishes current warnings of cyber threats (e.g. social engineering attacks, phishing, fake calls) on
different channels, such as the George online banking system, on the website in the ‘SicherheitsCenter’ and on social media
channels. Also, Erste Group supports public private partnership with the Federal Ministry of Interior, Payment Services Austria,
Austrian Post and Watchlist Internet to foster a common counterweight against fraudulent activities and to raise public awareness
in campaigns such as ‘Phishen Impossible’ or ‘10 Tage gegen Phishing’.
In 2025, Erste Group spending on the topic of cybersecurity totalled EUR 67.83 million (2024: EUR 59.68 million). Information on
resource management in relation to the topic of privacy can be found under ‘S4-1 - Policies related to consumers and end-users’
Employee Trainings
Investing in customer-centric training programmes ensures all staff members are well equipped with the knowledge and skills
necessary to handle customer data securely. In the training material, great emphasis is put on the detection, prevention and
handling of data breaches. In addition, Erste Group’s employees are then expected to be able to communicate effectively to its
customers about the processing of their personal data. By emphasising the importance of data protection, Erste Group aims to not
only safeguard its customers’ information and maintain their trust in its organisation, but also to foster a culture of responsibility by
raising awareness among its employees about potential risks.
Erste Group also invests in cyber security trainings and awareness campaigns to help employees recognise and avoid cyber threats
such as phishing campaigns or social engineering attacks. Therefore, Erste Group regularly educates its employees, executives,
board members and specific user groups (such as branch office employees, newcomers and trainees) through Erste Group’s
cybersecurity awareness programme, including mandatory annual web-based training, as well as phishing simulations and security
awareness events. In addition to the cyber security awareness program focusing on internal and external personnel, Erste Group
also sets activities to help its customers strengthening their cyber security awareness. Erste Group offers best-practice
recommendations and cyber security awareness sessions to educate on how to detect, prevent and respond to cyber threats.
Employees are required to undertake the training once a year to ensure that employee’s knowledge is always accurate given new
developments and threats, while Erste Group monitors the participation rate. The effectiveness of this action can be assessed
through the participation rate (98,9%, 2024: 97%) and subsequent dissemination of knowledge about Cyber Security Awareness.
The training programmes in Austria is overseen by the Group Data Protection Officer, with dedicated teams per subgroup
responsible for organising and conducting the training sessions in their respective entities. The Group Data Protection Officer is in
communication with the entities regarding the completion rates of these programmes.
S4-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS AND
ADVANCING POSITIVE IMPACTS
FINANCIAL HEALTH
Target on number of new clients reached in 2025 through Zweite Sparkasse.
The impact on the financial health of Erste Group’s vulnerable customer base can be reflected in the number of individuals
supported by Zweite Sparkasse, who would otherwise be unable to access financial services. In 2024, Zweite Sparkasse set a new
target for an increase in 1,000 new clients for each subsequent year. To this end, Zweite Sparkasse reported 1,794 new clients in
2025, exceeding the target by a significant amount.
Target on Social Banking financing for private individuals
The financing of private individuals in financial difficulty (presented below) serve as a component of the total financing target for
Social Banking. Information on the target of Social Banking financing can be found under ‘S3-5 - Targets related to managing
material negative impacts and advancing positive impacts’.
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Social Banking yearly performance indicators for private individuals

| 2024 | 2025
Finance for private clients with difficulties in EUR million | — | 3.4
Finance for private clients with difficulties in number of new clients | — | 314
Number of new supported private clients in financial difficulties | 2,878 | 7,156

PRIVACY
Due to the high level of regulation within the fields of data protection and cybersecurity, Erste Group has set no additional
quantitative targets. However, Erste Group’s aim is continued strict compliance with the GDPR to ensure the highest level of
protection for customer data and to prevent regulatory penalties.
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Governance information
Business conduct
This section focuses on Erste Group’s business conduct and its commitment to ethical behaviour. Erste Group places a high value
on ethically correct behaviour, considering it as a fundamental prerequisite for its business activities and strategic priorities. This
commitment is reflected in its Statement of Purpose, which requires employees to consider not only the legality and profitability of
business decisions but also whether they are the right thing to do. Building on this foundation, Erste Group’s Code of Conduct,
approved by the Management Board in 2015 and updated in January 2025, sets forth binding rules and ethical principles for all
employees and board members. The Code emphasises responsibility, respect and sustainability in all business activities.
Additionally, Erste Group is committed to the principles of the UN Global Compact, which include upholding human rights, labour
standards and combating corruption, drawing from key international declarations and conventions.
In the context of the double materiality assessment (DMA), two sustainability matters have been identified within Business
Conduct, each with potential negative impact:

Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
G1-Protection of whistleblowers | Potential negative impact | The potential lack of protection for whistle- blowers interferes with freedom of expression, potentially leading to retaliation and reprisal, social exclusion and psychological stress for whistle-blowers. | Own operations | All time horizons
G1-Corruption and bribery - Prevention and detection including training | Potential negative impact | A lack of awareness and internal measures could potentially lead to corruption or bribery incidents with legal consequences including labour law sanctions as well as civil and criminal proceedings for employees. (also material for Incidents of corruption or bribery) | Own operations | All time horizons

Protection of whistleblowers
The established protection mechanisms for whistleblowers at Erste Group play a crucial role in preventing individual risks for
whistle-blowers. Without these secure and confidential reporting channels, individuals who expose misconduct could face serious
consequences, such as retaliation, professional disadvantages or social exclusion. Such outcomes could also have a lasting impact
on trust in the organisation.
The established reporting channels for all stakeholders serve to prevent individual whistleblowers from facing isolation or
disadvantage resulting from inadequate protection. They limit potential harm to single cases, as regular audits and transparent
processes ensure the effectiveness of the mechanisms.
Corruption and bribery – prevention and detection including training
Training programs aimed at preventing and detecting corruption and bribery are a key pillar of Erste Group’s anti-bribery and
corruption (ABC) strategy. Offered to all employees, these initiatives play a crucial role in fostering awareness and understanding of
ethical conduct. Without such measures, a lack of knowledge and sensitivity to conflict of interest (CoI) and ABC risks could result
in employees failing to identify corrupt practices or becoming unintentionally involved in them, whether through active or passive
participation.
In the event of a corruption-related incident, the consequences can be severe. The resulting loss of trust in the organisation would
be difficult to restore and could necessitate extensive and prolonged remediation efforts. Moreover, such incidents may lead to
significant reputational damage, financial losses and even criminal consequences for the individuals involved or the company itself.
Ultimately, these preventive initiatives help cultivate a strong business conduct for the sake of zero tolerance to bribery and
corruption, reinforcing Erste Group’s reputation as a principled and trustworthy financial institution.
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G1-1 – BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE
Erste Group’s policies relating to business conduct comprise the Code of Conduct at Erste Group, which fosters its corporate
culture by embedding its core values of people, fairness and transparency into every aspect of its operations. Therefore, Erste
Group’s culture is aligned with its group and business strategy. Leadership plays a pivotal role in Erste Group’s culture, guided by
its five leadership dimensions: out of comfort zone, servant leadership, performance impact, future orientation and client
orientation. The Code of Conduct also serves as a guide for leaders to ensure the organisation is fit for the future while adhering to
all relevant ethical standards. Erste Group regularly monitors and refines its culture through exchanges, employee feedback and
360° leadership evaluations to ensure it remains strong and effective. Erste Group enhances its corporate culture through
leadership development, employee training on values and ethics and engagement surveys. Erste Group also offers town halls, open
forums and onboarding programs. Erste Group’s cultural initiatives include diversity and inclusion, social responsibility and
sustainability efforts.
To ensure the integrity and trust in the organisation, Erste Group has implemented two key policies: the Group Risk Policy
Whistleblowing and the Policy on CoI and Anti-Bribery and ABC. These policies are essential components of its governance
structure and contribute to an ethical and transparent work environment.
Protection of whistleblowers
The Group Risk Policy Whistleblowing at Erste Group establishes group-wide standards to identify, report and investigate concerns
about unlawful behaviour, including such behaviour in contradiction to the code of conduct. The policy is based on the EU
Directive 2019/1937, the Austrian Whistleblower Protection Act and the Austrian Banking Act §99g.
Erste Group provides various channels for reporting concerns, including an internet portal, mail, telephone and personal meetings.
These channels are accessible not only to employees but also to third parties, in accordance with applicable whistleblower
protection laws. Information about whistleblowing is provided through Erste Group websites, internal mandatory trainings, annual
mandatory information sessions by team and department heads. Whistleblowing officers receive specialised training, particularly in
data protection and maintain the independence necessary for their role.
Detailed information regarding the process and protection against retaliation is available in the FAQ section of Erste Group’s
Whistleblowing platform, Erste Integrity. The ‘Erste Integrity’ program includes an internal reporting office where employees can
report suspected cases or ask questions about possible violations. This office, under the CRO division, is staffed by qualified and
authorised employees within the Non-Financial Risk function. Reports are received and processed confidentially according to a
standardised process, with all reports being investigated and appropriate measures taken if necessary. The system provides
safeguards for whistleblowers, including anonymity protection, protection of involved individuals and protection against false
accusations. Correct processing of concerns is ensured through regular reporting to the Management and Supervisory Board, as
well as internal and external audits.
The Group Risk Policy Whistleblowing covers all employees, customers and third parties and includes a category for ‘Unacceptable
behaviour’ to address concerns of violence, discrimination, harassment and similar misconduct. The Non-Financial Risk team
within the CRO division is responsible for implementing this policy with the involvement and support of employee representatives
to ensure better acceptance among employees, facilitated by a specific mutual works agreement.
Whistleblowing policies (group and local) related to employees are available on the intranet, accessible to internal stakeholders.
External stakeholders are informed via Erste Group websites and the ‘Erste Integrity’ Whistleblowing platform on the internet.
Corruption and bribery – Prevention and detection including training
The Policy on CoI and ABC directly addresses the potential negative impacts identified in the materiality assessment, corruption
and bribery - prevention and detection including training. The policy establishes comprehensive standards to prevent and detect
conflicts of interest, bribery and corruption. The policy is derived from the Statement of Purpose and the Code of Conduct.
Responsibilities and standardised procedures for managing conflicts of interest and anti-bribery and corruption throughout all
levels of Erste Group’s business are defined in the policy. It aims to prevent legal breaches and protect the company’s reputation
through a responsible corporate culture, a clear compliance framework and appropriate employee qualifications. This policy is
implemented through prevention training offered to all employees. This training effectively counteracts potential corruption and
bribery, benefiting the interests of consumers, employees and business partners and promoting a trusting and ethical business
environment.
All individuals are considered at risk for bribery and corruption therefore Erste Group does not differentiate between employees.
Thus, the Conflict of Interest and Anti-Bribery and Corruption web-based trainings (WBT) are mandatory for all Erste Group
employees. The WBT must be repeated every two years. The training provides an overview of different types of conflicts of interest,
such as organisational CoI, confidential CoI and CoI regarding procurement or the supply chain. The WBT consists of four
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categories: general information, treatment of benefits, treatment of secondary activities and personal and close relationships. It
details various terms to ensure a uniform understanding and presents the reporting and approval processes for different types of
CoI involving various stakeholders. The trainings are centrally defined in English and German and rolled out to the entities, where
they are adapted to local legislation and language. Employees must pass a knowledge test with a rate of at least 80% at the end of
the training. All employees are considered at risk of bribery and corruption. However, an additional targeted training course is
conducted for those at Erste Group who are particularly exposed to situations where corruption or bribery could occur, in addition
to the basic mandatory training for all employees. This training is aimed at members of the Management Board, as well as
employees working in sales, sponsorship, cooperation, donations and marketing, due to a risk-based approach.
Monitoring processes include reporting obligations via a reporting tool or email, data analysis by the Group Conduct Compliance
unit to detect material gaps for training purposes, impromptu controls when conflicts of interest arise and desk reviews. All
relevant Erste Group entities and their staff must implement necessary policies, processes and infrastructure to fully support
compliance with the defined minimum standards. The policy applies across all geographies in which Erste Group operates and
addresses the needs and concerns of all affected stakeholder groups.
The policy is approved by all members of the Management Board, who are legally accountable and liable for the group-wide ABC
policy. The document is owned by Group Conduct Compliance and follows a review cycle of two years, during which contents are
reviewed and assessed based on changes in legal acts or recommendations from public authorities. Investigations regarding the
prevention and detection of corruption and bribery are carried out by the Conduct Compliance department independently of
business units (including staff and management).
The policy is made available through the intranet for all employees and is part of the WBT that all employees must complete. Local
process owners define detailed processes and regulations, which are rolled out via the intranet or the communication platform
(‘Anweisungsportal’) to employees. General information about Erste Group’s Policy on CoI and ABC is also made available to
external stakeholders on its website.
G1-3 – PREVENTION AND DETECTION OF CORRUPTION AND BRIBERY
Internal fraud involving bribery and/or corruption occurs when an employee unlawfully accepts or offers bribes to influence
decisions or gain undue advantages. A corruption incident is defined as the abuse of entrusted public or business power, office, or
resources for private gain, either by elected government officials or by other private individuals. Bribery, a form of corruption, is
defined as the act of receiving a benefit, whether financial or non-financial, that alters the behaviour of the recipient. A bribery
incident involves intentionally offering, giving, receiving, or soliciting the benefit, directly or indirectly, or through a third party, to
improperly influence a person in the performance of a duty, to obtain or retain a benefit or any undue advantage, or to influence
the actions of an official or other person in charge of a public or business duty.
When an incident of internal fraud involving bribery or corruption is suspected, the Internal Audit function is involved to perform
a thorough audit on the matter. This ensures that all allegations are investigated independently and comprehensively. The Conduct
Compliance department, which operates separately from the chain of management, also plays a crucial role in investigating these
incidents according to the 3-Lines-of-Defense Model. This model ensures that responsibility for compliance matters, including
breaches of corruption and bribery, lies with Group Conduct Compliance, which reports directly to the Management Board. In case
a suspicion on internal fraud occurs for an employee, who has already been dismissed, Internal Audit will perform audit steps on
the matter, which might lead to legal actions.
Erste Group has established rigorous procedures to prevent, detect and address allegations or incidents of corruption and bribery.
These efforts focus on ensuring compliance with financial sanctions, embargoes, securities compliance and good conduct
compliance, which includes anti-bribery and anti-corruption agendas. Regular risk-based monitoring by Compliance units ensures
adherence to these procedures and raises awareness of compliance risks among all relevant staff. Critical conflicts of interest,
particularly those indicating corruption, are reported to the Board and Supervisory Board of Erste Group Bank AG. Reports are
submitted through Group Conduct Compliance to Group Internal Audit, the Management Board and the Supervisory Board.
Compliance officers are provided with specific internal working instructions outlining procedures to prevent, detect and address
allegations or incidents of corruption and bribery. An escalation process involving various stakeholders (Internal Audit,
Compliance, People & Culture, Non-Financial Risk function) is followed to investigate potential cases of corruption or bribery.
Investigations are carried out by the Conduct Compliance department, which operates independently from the chain of
management, ensuring unbiased and thorough investigations.
Group Anti-Financial Crime provides a comprehensive and mandatory fraud prevention training to employees. This training
educates employees on common fraud schemes, red flags, preventive measures and reporting procedures, including internal fraud
154
awareness. It includes Erste Group’s legal/regulatory framework around fraud, addressing its Zero Tolerance Policy and
elaboration of all types of fraud. The training tackles techniques how to detect fraud, strategies to prevent and how to report fraud.
The training is designed for both new and existing employees, with specific formats and frequencies to ensure comprehensive
coverage. New employees receive on-site fraud training available in both English and German, conducted regularly at least once a
month. All employees must complete the mandatory web-based fraud training available on the internal learning platform every two
years.
In 2022, the Policy on Conflict of Interest and Anti-Bribery and Corruption was rolled out to Erste Group Bank AG and Erste Bank
der oesterreichischen Sparkassen AG, including their major shareholdings, as well as to CEE banks making it applicable to over 90
entities within the Erste Group and the Austrian savings banks sector. All entities of the Haftungsverbund (cross-guarantee system)
implemented the Policy in form of the HV-Rulebook. At the end of 2024, a revised second version of the Group Policy on CoI an
ABC was implemented. It places enhanced emphasis on conflicts of interest arising from political mandates held as secondary
occupations, as well as on donations and sponsorships in favour of political parties and politically linked groups, aiming to address
potential risks more precisely and further strengthen the Group’s integrity. The implementation of the revised second version of the
HV Rulebook will be finalised in the beginning of 2026.
Group Conduct Compliance monitors the completion of e-learning modules, supported by the Group People Development &
Culture department, which is locally responsible for implementation, oversight and escalation in cases of non-completion.
Completion rates vary depending on local factors such as the technical infrastructure of the e-learning platform, assignment dates
and logic, escalation processes and the scope and definition of management across entities in Austria and CEE. These discrepancies
have led to a comparatively low completion rate of 69,2% (2024: 73,6%) among management bodies (see table ‘Anti-corruption and
bribery training’ for details).
In 2025, significant steps were taken to harmonise training records across the Group. Through the CSRD Manual, key measures
related to CoI and ABC were standardised and newly defined at Group level. This provides a consistent foundation for the
assignment and tracking of training content.
In addition, Group People Development introduced a new regulatory training framework called RegONE. This framework
establishes a uniform, audit-ready and scalable structure that covers all employee groups subject to regulatory training
requirements. RegONE standardises processes, ensures ongoing compliance and creates clarity, reliability and controllability across
the Group. It encompasses the entire lifecycle of regulatory training. from definition and assignment to escalation, governance and
audit readiness - and includes an escalation logic for non-completion. The rollout of the framework will initially begin in Austria.
The following data includes the completion rates for the COI and ABC WBT of staff at risk, defined as all employees including
management (but excluding supervisory board members), across all entities within the Group Compliance steering perimeter. This
perimeter is basically based on majority stakes and Compliance’s risk‑based approach and may therefore differ from the IFRS
consolidation scope. For the purpose of this report, all employees are considered staff in risk functions. Nevertheless, the table
presents the data in a manner by distinguishing between staff-at-risk (all employees) and management bodies/management board.
Compared to the previous report, the completion rate differs due to the application of a different observation period. The previous
reporting cycle applied a longer observation period, whereas the current cycle applies a shorter one.
Anti-corruption and bribery training

| 2024 | 2025
| Staff at-risk functions | Management bodies - board members | Staff at-risk functions | Management bodies - board members
Training coverage | 92.4% | 73.6% | 90.4% | 69.2%
Total trainings completed | 30,101 | 53 | 31,199 | 74

Erste Group implements a comprehensive training concept to prevent corruption, bribery and conflicts of interest. The foundation
is a mandatory groupwide WBT on CoI and ABC, which is also available in locally adapted versions. Training data are primarily
based on the completion of this groupwide WBT on CoI and ABC or its localised versions.
The training provides practical knowledge on typical forms of conflicts of interest, corruption and bribery, as well as on their
prevention and reporting. It is based on Erste Group´s legal and regulatory framework and the group-wide CoI and ABC policy,
which establishes a zero-tolerance approach towards any form of corruption and bribery. The total duration of the WBT is
approximately 60 minutes, with 45 minutes dedicated to the theoretical part and 15 minutes to a final knowledge check.
Additional trainings are conducted as needed, with content and duration tailored to the specific risks and requirements of the
respective local entities.
155
G1-4 – INCIDENTS OF CORRUPTION OR BRIBERY
Incidents of corruption or bribery within an organisation can severely undermine its integrity and ethical standards. At Erste
Group, such incidents are treated with the utmost seriousness in accordance with the Policy on CoI and ABC. The Group maintains
a strict zero tolerance approach towards any form of bribery or corruption.
There have been zero convictions for violations of anti-corruption and anti-bribery laws and the amount of fines for such violations
is zero in 2025. This mirrors the situation from the previous year, where both convictions and fines were also zero (2024: zero). The
data is not validated by an external body.

Subtopic | List of key-actions | Policy
G1-Corruption and bribery - prevention and detection including training | Training programmes to prevent and detect corruption and bribery | Policy on Conflict of Interest and Anti-Bribery and Corruption

Training programmes to prevent and detect corruption and bribery
Erste Group has established comprehensive training programmes to prevent and detect corruption and bribery, aligned with the
Policy on CoI and ABC. These ongoing actions are designed to raise awareness, prevent corruptive behaviour and address any
material gaps, thereby supporting the positive impact of promoting a trusting and ethical business environment (see G1-1 and G1-3
for further details).
An additional implementation of a group-wide compliance platform is in progress. The platform is designed to serve as a central
hub for knowledge sharing on key compliance topics; including conflicts of interest, the CoI and ABC policies, relevant points of
contact and links to WBT resources. Its objective is to enhance accessibility and promote the consistent dissemination of essential
compliance information across the organisation.
The progress of these actions is monitored through evaluations of the web-based training, data analysis of the reporting tool, checks
and risk assessments (see G1-3). Group Conduct Compliance, with support from the department of Group People Development,
monitors the completion rates of the e-learning programmes and escalates cases of non-completion.
G1-5 - POLITICAL INFLUENCE AND LOBBYING ACTIVITIES
Erste Group engages in advocacy activities both on the national as well as EU level. Erste Group priorities during 2025 included the
creation of a strong Savings and Investments Union, increasing the EU’s and CEE region’s competitiveness as well as fostering
domestic policies that are conducive for the economy. Additionally, Erste Group also addressed the following sustainability
matters, which have been identified as material:
_ Climate change mitigation/energy: During the reporting year, Erste Group advocated for a well-balanced simplification agenda,
e.g. in the context of CSRD/CSDDD, that aligns with bank’s reporting requirements.
_ Financial health: In 2025 Erste Group focused on the Commission’s recommendation on Savings and Investment Accounts, with
a view to strengthening financial health across the EU.
_ Gender equality and equal pay for work of equal value: Erste Group contributed ideas on how to effectively implement the EU
Directive on Pay Transparency.
Erste Group is a member of several trade associations. Erste Group Bank AG and Erste Bank der oesterreichischen Sparkassen AG
do not provide donations to political parties (or their sub-organizations), candidates, active politicians with political mandates at all
levels, party-political action committees or for party-political causes. This is in line with the group’s Political Engagement
Statement, which provides these restrictions and applies to all employees, management board members, representatives and third
parties acting on behalf of Erste Group Bank AG and its entities in political or lobbying contexts.
Selected memberships and affiliations are:
_ Institute of International Finance (IIF) (international),
_ Eurofi (international),
_ Austrian Federal Economic Chamber (national – mandatory membership by law),
_ Federation of Austrian Industries (national) and
_ Austrian Savings Banks Association (national).
Erste Group is registered in the Austrian Lobbying and Advocacy Register under the number LIVR-00179 as well as in the EU’s
Transparency register under the number 910859715397-14.
156
Among the Supervisory Board members newly appointed during the reporting period, one member had held a position in public
administration within the two years preceding their appointment.
Group Corporate Affairs & Stakeholder Management is responsible for steering the political engagement and responsible lobbying
for Erste Group Bank AG and Erste Bank der oesterreichischen Sparkassen AG. Its division reports directly to the CEO.
157
Subsequent events after balance sheet date
For events of particular importance after balance sheet date, Erste Group refers to the disclosures in Note 67 Events after the balance
sheet date in the consolidated financial statements.
158

Management Board
Peter Bosek mp, Chairman
Ingo Bleier mp, Member | Stefan Dörfler mp, Member
Alexandra Habeler-Drabek mp, Member | Maurizio Poletto mp, Member

Vienna, 25 February 2026
159
Group Consolidated Financial
Statements 2025 (IFRS)

Consolidated statement of income ........................................................................................................................................................................................................ | 161
Consolidated statement of comprehensive income ......................................................................................................................................................................... | 162
Consolidated balance sheet ..................................................................................................................................................................................................................... | 163
Consolidated statement of changes in equity .................................................................................................................................................................................... | 164
Consolidated statement of cash flow .................................................................................................................................................................................................... | 166
Notes to the group financial statements of Erste Group ................................................................................................................................................................. | 167
General information .................................................................................................................................................................................................................................... | 167
Material accounting policies .................................................................................................................................................................................................................... | 167
a) Basis of preparation ........................................................................................................................................................................................................................... | 167
b) Foreign currency translation ............................................................................................................................................................................................................ | 168
c) Material accounting judgements, assumptions and estimates ............................................................................................................................................... | 168
d) Application of amended and new IFRS/IAS .................................................................................................................................................................................. | 169
Performance / Return ................................................................................................................................................................................................................................. | 170
1.Segment reporting ............................................................................................................................................................................................................................. | 170
2.Net interest income ........................................................................................................................................................................................................................... | 178
3.Net fee and commission income .................................................................................................................................................................................................... | 179
4.Dividend income ................................................................................................................................................................................................................................. | 180
5.Net trading result .............................................................................................................................................................................................................................. | 180
6.Gains/losses from financial instruments measured at fair value through profit or loss .................................................................................................. | 180
7.Rental income from investment properties & other operating leases .................................................................................................................................. | 180
8.General administrative expenses .................................................................................................................................................................................................. | 181
9.Gains/losses from derecognition of financial assets measured at amortised cost .......................................................................................................... | 182
10.Other gains/losses from derecognition of financial instruments not measured at fair value through profit or loss ............................................... | 182
11.Impairment result from financial instruments ............................................................................................................................................................................ | 183
12.Other operating result ..................................................................................................................................................................................................................... | 184
13.Taxes on income ............................................................................................................................................................................................................................... | 184
14.Appropriation of profit ..................................................................................................................................................................................................................... | 188
Financial instruments – Material accounting policies ...................................................................................................................................................................... | 189
Financial instruments held at amortised cost .................................................................................................................................................................................... | 194
15.Cash and cash balances ................................................................................................................................................................................................................. | 194
16.Financial assets at amortised cost ................................................................................................................................................................................................ | 194
17.Trade and other receivables ........................................................................................................................................................................................................... | 196
18.Financial liabilities at amortised costs ......................................................................................................................................................................................... | 196
Financial assets at fair value through other comprehensive income ......................................................................................................................................... | 199
19.Financial assets at fair value through other comprehensive income – debt instruments .............................................................................................. | 199
20.Financial assets at fair value through other comprehensive income – equity instruments ............................................................................................ | 200
Financial instruments at fair value through profit or loss ............................................................................................................................................................... | 201
21.Derivative financial instruments ..................................................................................................................................................................................................... | 202
22.Other financial assets held for trading ......................................................................................................................................................................................... | 203
23.Non-trading financial assets at fair value through profit or loss ........................................................................................................................................... | 203
24.Other financial liabilities held for trading ..................................................................................................................................................................................... | 203
25.Financial liabilities at fair value through profit or loss .............................................................................................................................................................. | 204
Financial instruments – other disclosure matters ............................................................................................................................................................................ | 206
26.Fair value of financial instruments ................................................................................................................................................................................................. | 206
27.Hedge Accounting ............................................................................................................................................................................................................................. | 214
28.Offsetting of financial assets and liabilities ................................................................................................................................................................................ | 219
29.Transfers of financial assets – repurchase transactions and securities lending .............................................................................................................. | 220
30.Financial assets pledged as collaterals ........................................................................................................................................................................................ | 222
31.Securities ............................................................................................................................................................................................................................................. | 222
Risk and capital management .................................................................................................................................................................................................................. | 223
32.Financial risk management .............................................................................................................................................................................................................. | 223

160

33.Own funds and capital requirements ............................................................................................................................................................................................ | 228
34.Credit risk: credit risk review and monitoring ........................................................................................................................................................................... | 231
35.Credit risk exposure ......................................................................................................................................................................................................................... | 234
36.Use of collateral and other credit enhancements ..................................................................................................................................................................... | 240
37.Measurement of expected credit loss .......................................................................................................................................................................................... | 243
38.Credit risk exposure by IFRS 9 Stage and ECL .......................................................................................................................................................................... | 247
39.Development of credit loss allowances ....................................................................................................................................................................................... | 249
40.Scenarios used in forward looking information and Crises Effects ..................................................................................................................................... | 254
41.Restructuring, renegotiation and forbearance ........................................................................................................................................................................... | 261
42.Non-performing credit risk exposure and credit loss allowances ....................................................................................................................................... | 264
43.Detailed analysis of loans and advances to customers ........................................................................................................................................................... | 265
44.Market risk .......................................................................................................................................................................................................................................... | 270
45.Liquidity risk ........................................................................................................................................................................................................................................ | 274
46.Operational risk .................................................................................................................................................................................................................................. | 277
Non-current assets and other investments ........................................................................................................................................................................................ | 279
47.Property, equipment and investment properties ....................................................................................................................................................................... | 279
48.Intangible assets ................................................................................................................................................................................................................................ | 282
49.Other assets ........................................................................................................................................................................................................................................ | 285
Leases .............................................................................................................................................................................................................................................................. | 287
50.Erste Group as a lessor .................................................................................................................................................................................................................... | 287
51.Leases where the Group is a lessee ............................................................................................................................................................................................. | 288
Accruals, provisions, contingent liabilities and legal proceedings ............................................................................................................................................. | 290
52.Other liabilities .................................................................................................................................................................................................................................... | 290
53.Provisions ............................................................................................................................................................................................................................................. | 290
54.Contingent liabilities ......................................................................................................................................................................................................................... | 295
Capital instruments, equity and reserves ............................................................................................................................................................................................ | 297
55.Total equity .......................................................................................................................................................................................................................................... | 297
56.Non-controlling interest ................................................................................................................................................................................................................... | 300
Scope of consolidation ............................................................................................................................................................................................................................... | 301
57.Scope of consolidation - additions and disposals .................................................................................................................................................................... | 301
58.Subsidiaries ......................................................................................................................................................................................................................................... | 304
59.Investments in associates and joint ventures ............................................................................................................................................................................ | 305
60.Unconsolidated structured entities ............................................................................................................................................................................................... | 307
Other disclosure matters ........................................................................................................................................................................................................................... | 309
61.Related-party transactions .............................................................................................................................................................................................................. | 309
62.Share-based payments .................................................................................................................................................................................................................... | 311
63.Fees of the Auditors ......................................................................................................................................................................................................................... | 313
64.Assets held for sale and liabilities associated with assets held for sale ............................................................................................................................. | 313
65.Assets and liabilities denominated in foreign currencies and outside Austria and return on assets .......................................................................... | 314
66.Analysis of remaining maturities .................................................................................................................................................................................................... | 315
67.Events after the balance sheet date ............................................................................................................................................................................................. | 316
68.Country by country reporting ......................................................................................................................................................................................................... | 316
69.Government grants ............................................................................................................................................................................................................................ | 316
70.Details of the companies wholly or partly owned by Erste Group as of 31 December 2025 ......................................................................................... | 317
Additional information ................................................................................................................................................................................................................................ | 329

161
Consolidated statement of income

in EUR million | Notes | 1-12 24 | 1-12 25
Net interest income | 2 | 7,528 | 7,788
Interest income | 2 | 15,353 | 13,693
Other similar income | 2 | 3,756 | 2,914
Interest expenses | 2 | -7,549 | -5,990
Other similar expenses | 2 | -4,032 | -2,829
Net fee and commission income | 3 | 2,938 | 3,191
Fee and commission income | 3 | 3,454 | 3,810
Fee and commission expenses | 3 | -517 | -620
Dividend income | 4 | 39 | 36
Net trading result | 5 | 519 | 313
Gains/losses from financial instruments measured at fair value through profit or loss | 6 | -82 | 107
Net result from equity method investments |  | 27 | 46
Rental income from investment properties & other operating leases | 7 | 210 | 179
Personnel expenses | 8 | -3,202 | -3,335
Other administrative expenses | 8 | -1,529 | -1,688
Depreciation and amortisation | 8 | -547 | -560
Gains/losses from derecognition of financial assets measured at amortised cost | 9 | -90 | -49
Other gains/losses from derecognition of financial instruments not measured at fair value through profit or loss | 10 | -1 | 9
Impairment result from financial instruments | 11 | -397 | -478
Other operating result | 12 | -414 | -158
Levies on banking activities | 12 | -245 | -372
Pre-tax result from continuing operations |  | 4,997 | 5,400
Taxes on income | 13 | -1,053 | -1,103
Net result for the period |  | 3,945 | 4,297
Net result attributable to non-controlling interests |  | 819 | 788
Net result attributable to owners of the parent |  | 3,125 | 3,510

Earnings per share
Earnings per share constitute net profit/loss for the year attributable to owners of the parent divided by the average number of
ordinary shares outstanding. The average number of outstanding shares is net of the average number of treasury shares,
considering the shares buyback in the previous year. Diluted earnings per share represent the maximum potential dilution
(through an increase in the average number of shares) that would occur if all subscription and conversion rights granted were
exercised. The difference between the weighted average number of outstanding shares and the weighted average diluted number of
outstanding shares results from share-based payment transactions with employees. For information on share-based payments
please refer to Note 62 Share-based payments .

|  | 1-12 24 | 1-12 25
Net result attributable to owners of the parent | in EUR thousand | 3,125,299 | 3,509,552
Dividend on AT1 capital (after tax effect) | in EUR thousand | -132,593 | -138,564
Net result for the period attributable to owners of the parent after deduction of AT1 capital dividend | in EUR thousand | 2,992,706 | 3,370,988
Weighted average undiluted number of outstanding shares |  | 415,854,514 | 408,949,788
Earnings per share | in EUR | 7.20 | 8.24
Weighted average diluted number of outstanding shares |  | 416,176,925 | 409,244,552
Diluted earnings per share | in EUR | 7.19 | 8.24

For details regarding the number of outstanding shares please refer to Note 55 Total equity.
162
Consolidated statement of comprehensive income

in EUR million | Notes | 1-12 24 | 1-12 25
Net result for the period |  | 3,945 | 4,297
Other comprehensive income |  |  |
Items that may not be reclassified to profit or loss |  | -19 | 25
Remeasurement of defined benefit plans | 53 | 19 | 41
Fair value reserve of equity instruments | 20 | 7 | 4
Own credit risk reserve | 25 | -59 | -12
Deferred taxes relating to items that may not be reclassified | 13 | 14 | -8
Items that may be reclassified to profit or loss |  | -139 | 212
Fair value reserve of debt instruments | 19 | 45 | 33
Gains/losses during the period |  | 38 | 53
Reclassification adjustments |  | 10 | -19
Credit loss allowances |  | -2 | 0
Cash flow hedge reserve | 27 | 29 | -7
Gains/losses during the period |  | 76 | -64
Reclassification adjustments |  | -47 | 57
Currency reserve |  | -195 | 194
Gains/losses during the period |  | -197 | 260
Net investment hedge gains/losses during the period | 27 | 3 | -67
Reclassification adjustments |  | 0 | 1
Deferred taxes relating to items that may be reclassified | 13 | -19 | -8
Gains/losses during the period |  | -30 | 0
Reclassification adjustments |  | 11 | -8
Total other comprehensive income |  | -158 | 237
Total comprehensive income |  | 3,787 | 4,535
Total comprehensive income attributable to non-controlling interests |  | 829 | 813
Total comprehensive income attributable to owners of the parent |  | 2,958 | 3,721

For a detailed split of income tax items within other comprehensive income please refer to Note 13 Taxes on income.
163
Consolidated balance sheet

in EUR million | Notes | Dec 24 | Dec 25
Assets |  |  |
Cash and cash balances | 15 | 25,129 | 27,573
Financial assets held for trading | 21, 22 | 11,463 | 9,377
Derivatives | 21 | 1,226 | 829
Other financial assets held for trading | 22 | 10,236 | 8,548
Pledged as collateral | 29 | 483 | 248
Non-trading financial assets at fair value through profit or loss | 23 | 3,040 | 3,833
Pledged as collateral | 29 | 0 | 0
Equity instruments | 23 | 464 | 523
Debt securities | 23 | 1,468 | 1,786
Loans and advances to customers | 23 | 1,108 | 1,524
Financial assets at fair value through other comprehensive income | 19, 20 | 9,498 | 9,181
Pledged as collateral | 29 | 107 | 275
Equity instruments | 20 | 109 | 113
Debt securities | 19 | 9,388 | 9,068
Financial assets at amortised cost | 16 | 288,894 | 301,707
Pledged as collateral | 29 | 4,066 | 2,708
Debt securities | 16 | 52,889 | 58,655
Loans and advances to banks | 16 | 26,972 | 20,827
Loans and advances to customers | 16 | 209,034 | 222,225
Finance lease receivables | 50 | 5,248 | 5,290
Hedge accounting derivatives | 27 | 181 | 231
Fair value changes of hedged items in portfolio hedge of interest rate risk | 27 | -19 | -64
Property and equipment | 47 | 2,754 | 2,941
Investment properties | 47 | 1,678 | 1,913
Intangible assets | 48 | 1,382 | 1,413
Investments in associates and joint ventures | 59 | 280 | 465
Current tax assets | 13 | 45 | 84
Deferred tax assets | 13 | 266 | 171
Assets held for sale | 64 | 154 | 211
Trade and other receivables | 17 | 2,677 | 2,946
Other assets | 49 | 1,066 | 1,301
Total assets |  | 353,736 | 368,574
in EUR million | Notes | Dec 24 | Dec 25
Liabilities and equity |  |  |
Financial liabilities held for trading | 21, 24 | 1,821 | 2,412
Derivatives | 21 | 1,149 | 1,092
Other financial liabilities held for trading | 24 | 672 | 1,321
Financial liabilities at fair value through profit or loss | 25 | 10,281 | 9,857
Deposits from customers | 25 | 115 | 174
Debt securities issued | 25 | 10,030 | 9,268
Other financial liabilities | 25 | 136 | 415
Financial liabilities at amortised cost | 18 | 305,332 | 316,168
Deposits from banks | 18 | 21,261 | 16,919
Deposits from customers | 18 | 241,535 | 252,817
Debt securities issued | 18 | 41,859 | 45,604
Other financial liabilities |  | 676 | 829
Lease liabilities | 51 | 691 | 721
Hedge accounting derivatives | 27 | 194 | 170
Provisions | 53 | 1,626 | 1,416
Current tax liabilities | 13 | 241 | 323
Deferred tax liabilities | 13 | 31 | 52
Liabilities associated with assets held for sale | 64 | 93 | 84
Other liabilities | 52 | 2,658 | 2,706
Total equity | 55 | 30,767 | 34,665
Equity attributable to non-controlling interests | 55 | 7,633 | 8,367
Additional equity instruments | 55 | 2,688 | 3,479
Equity attributable to owners of the parent | 55 | 20,447 | 22,819
Subscribed capital | 55 | 821 | 821
Additional paid-in capital | 55 | 1,516 | 1,516
Retained earnings and other reserves | 55 | 18,110 | 20,481
Total liabilities and equity |  | 353,736 | 368,574

164
Consolidated statement of changes in equity

in EUR million | Subscribed capital | Additional paid-in capital | Retained earnings | Cash flow hedge reserve | Fair value reserve | Own credit risk reserve | Currency reserve | Remeasurement of defined benefit plans | Equity attributable to owners of the parent | Additional equity instruments | Equity attributable to non-controlling interests | Total equity
As of 01 January 2025 | 821 | 1,516 | 19,517 | -6 | 69 | -102 | -889 | -480 | 20,447 | 2,688 | 7,633 | 30,767
Changes in treasury shares | 0 | 0 | -5 | 0 | 0 | 0 | 0 | 0 | -5 | 0 | 0 | -5
Dividends paid | 0 | 0 | -1,344 | 0 | 0 | 0 | 0 | 0 | -1,344 | 0 | -95 | -1,439
Capital increase/decrease | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 792 | 2 | 793
Changes in scope of consolidation and ownership interest | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1
Reclassification from other comprehensive income to retained earnings | 0 | 0 | -1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0
Share-based payments | 0 | 0 | -2 | 0 | 0 | 0 | 0 | 0 | -2 | 0 | 0 | -2
Other changes | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 14 | 14
Total comprehensive income | 0 | 0 | 3,510 | -5 | 17 | -7 | 194 | 13 | 3,721 | 0 | 813 | 4,535
Net result for the period | 0 | 0 | 3,510 | 0 | 0 | 0 | 0 | 0 | 3,510 | 0 | 788 | 4,297
Other comprehensive income | 0 | 0 | 0 | -5 | 17 | -7 | 194 | 13 | 212 | 0 | 26 | 237
Change from remeasurement of defined benefit plans | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13 | 13 | 0 | 18 | 31
Change in fair value reserve | 0 | 0 | 0 | 0 | 17 | 0 | 0 | 0 | 17 | 0 | 9 | 27
Change in cash flow hedge reserve | 0 | 0 | 0 | -5 | 0 | 0 | 0 | 0 | -5 | 0 | 0 | -5
Change in currency reserve | 0 | 0 | 0 | 0 | 0 | 0 | 194 | 0 | 194 | 0 | 0 | 194
Change in own credit risk reserve | 0 | 0 | 0 | 0 | 0 | -7 | 0 | 0 | -7 | 0 | -2 | -9
As of 31 December 2025 | 821 | 1,516 | 21,675 | -12 | 87 | -108 | -695 | -466 | 22,819 | 3,479 | 8,367 | 34,665

165

in EUR million | Subscribed capital | Additional paid-in capital | Retained earnings | Cash flow hedge reserve | Fair value reserve | Own credit risk reserve | Currency reserve | Remeasurement of defined benefit plans | Equity attributable to owners of the parent | Additional equity instruments | Equity attributable to non-controlling interests | Total equity
As of 01 January 2024 | 843 | 1,494 | 18,143 | -31 | 51 | -69 | -694 | -495 | 19,243 | 2,405 | 6,853 | 28,502
Changes in treasury shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Dividends paid | 0 | 0 | -1,217 | 0 | 0 | 0 | 0 | 0 | -1,217 | 0 | -132 | -1,348
Capital increase/decrease | -22 | 22 | -507 | 0 | 0 | 0 | 0 | 0 | -507 | 283 | 7 | -217
Changes in scope of consolidation and ownership interest | 0 | 0 | -31 | 0 | 0 | 0 | 0 | 0 | -31 | 0 | 81 | 50
Reclassification from other comprehensive income to retained earnings | 0 | 0 | 2 | 0 | -3 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Share based payments | 0 | 0 | 3 | 0 | 0 | 0 | 0 | 0 | 3 | 0 | 0 | 3
Other changes | 0 | 0 | -2 | 0 | 0 | 0 | 0 | 0 | -2 | 0 | -6 | -8
Total comprehensive income | 0 | 0 | 3,125 | 24 | 21 | -33 | -195 | 15 | 2,958 | 0 | 829 | 3,787
Net result for the period | 0 | 0 | 3,125 | 0 | 0 | 0 | 0 | 0 | 3,125 | 0 | 819 | 3,945
Other comprehensive income | 0 | 0 | 0 | 24 | 21 | -33 | -195 | 15 | -167 | 0 | 9 | -158
Change from remeasurement of defined benefit plans | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15 | 15 | 0 | 0 | 16
Change in fair value reserve | 0 | 0 | 0 | 0 | 21 | 0 | 0 | 0 | 21 | 0 | 16 | 37
Change in cash flow hedge reserve | 0 | 0 | 0 | 24 | 0 | 0 | 0 | 0 | 24 | 0 | 0 | 24
Change in currency reserve | 0 | 0 | 0 | 0 | 0 | 0 | -195 | 0 | -195 | 0 | 0 | -195
Change in own credit risk reserve | 0 | 0 | 0 | 0 | 0 | -33 | 0 | 0 | -33 | 0 | -7 | -40
As of 31 December 2024 | 821 | 1,516 | 19,517 | -6 | 69 | -102 | -889 | -480 | 20,447 | 2,688 | 7,633 | 30,767

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Consolidated statement of cash flow

in EUR million | Notes | 1-12 24 | 1-12 25
Net result for the period |  | 3,945 | 4,297
Non-cash adjustments for items in net profit/loss for the year |  |  |
Depreciation, amortisation and net impairment of non-financial assets | 47, 48 | 554 | 550
Net allocation of credit loss allowances and other provisions | 11,12 | 427 | 490
Gains/losses from measurement and derecognition of financial assets and financial liabilities | 9, 10 | -876 | 1,419
Other adjustments |  | -43 | 187
Changes in assets and liabilities from operating activities after adjustment for non-cash components |  |  |
Financial assets held for trading | 21, 22 | -2,641 | 2,164
Non-trading financial assets at fair value through profit or loss | 23 |  | 0
Equity instruments | 23 | -50 | -58
Debt securities | 23 | 139 | -284
Loans and advances to customers | 23 | -54 | -410
Financial assets at fair value through other comprehensive income: debt securities | 19 | -581 | 355
Financial assets at amortised cost | 16 |  |
Debt securities | 16 | -8,925 | -5,817
Loans and advances to banks | 16 | -5,556 | 6,136
Loans and advances to customers | 16 | -10,190 | -13,741
Finance lease receivables | 50 | -277 | -46
Hedge accounting derivatives - assets | 27 | 26 | -56
Other assets from operating activities | 17, 49 | 61 | -536
Financial liabilities held for trading | 21, 24 | 542 | -920
Financial liabilities at fair value through profit or loss | 25 | -1,075 | -427
Financial liabilities measured at amortised cost | 18 |  |
Deposits from banks | 18 | -1,649 | -4,343
Deposits from customers | 18 | 9,313 | 11,306
Debt securities issued | 18 | 8,529 | 3,744
Other financial liabilities |  | -672 | 153
Hedge accounting derivatives - liabilities | 27 | -91 | -24
Other liabilities from operating activities | 52 | 115 | -102
Cash flow from operating activities |  | -9,029 | 4,039
Proceeds of disposal |  |  |
Financial assets at fair value through other comprehensive income: equity instruments | 20 | 0 | 3
Investments in associates and joint ventures | 59 | -21 | -28
Property and equipment and intangible assets | 47, 48 | 51 | 62
Investment properties | 47 | 12 | 12
Acquisition of |  |  |
Property and equipment and intangible assets | 47, 48 | -746 | -753
Investment properties | 47 | -84 | -341
Acquisition of subsidiaries (net of cash and cash equivalents acquired) |  | -88 | -21
Disposal of subsidiaries |  | 28 | 67
Cash flow from investing activities |  | -850 | -1,000
Capital increase | 55 | 290 | 1,013
Capital decrease | 55 | -545 | -205
Changes in ownership interests that do not result in a loss of control | 55 | 50 | 1
Dividends paid to equity holders of the parent | 55 | -1,217 | -1,344
Dividends paid to non-controlling interests | 55 | -132 | -95
Cash flow from financing activities |  | -1,553 | -630
Cash and cash equivalents at the beginning of the period | 15 | 36,685 | 25,129
Cash flow from operating activities |  | -9,029 | 4,039
Cash flow from investing activities |  | -850 | -1,000
Cash flow from financing activities |  | -1,553 | -630
Effect of currency translation |  | -123 | 34
Cash and cash equivalents at the end of period | 15 | 25,129 | 27,573
Cash flows related to taxes, interest and dividends (included in cash flow from operating activities) |  | 6,423 | 6,680
Payments for taxes on income | 13 | -807 | -856
Interest received | 2 | 23,003 | 20,764
Dividends received | 4 | 39 | 36
Interest paid | 2 | -15,812 | -13,265

Cash and cash equivalents are equal to the amount in the balance sheet line item ‘Cash and cash balan ces’. Within the cash flow
from investing activities, the cash inflows and outflows related to equity transactions have been presented separately to enhance
transparency.
167
Notes to the group financial statements of Erste Group
General information
Erste Group Bank AG is Austria’s oldest savings bank and listed on the Vienna Stock Exchange. It is also quoted on the Prague
Stock Exchange and on the Bucharest Stock Exchange. The registered office of Erste Group Bank AG is located at Am Belvedere 1,
1100 Vienna, Austria.
The group of Erste Group Bank AG (hereinafter referred to as ‘Erste Group’ or ‘Group’) offers a complete range of banking and
other financial services, such as savings accounts, asset management (including investment funds), consumer credit and mortgage
lending, investment banking, securities and derivatives trading, portfolio management, project finance, foreign trade financing,
corporate finance, capital market and money market services, foreign exchange trading, leasing and factoring.
In 2025, Erste Group significantly expanded its geographical presence by entering the Polish market through an agreement to
acquire a controlling stake in Santander Bank Polska. The acquisition was completed in January 2026. Further information is
provided in Note 57 Scope of consolidation - additions and disposals.
These consolidated financial statements have been prepared and authorised for issue by the Management Board as at the signing
date of this report. Both, the Supervisory Board (12 March 2026) and the annual general meeting ( 17 April 2026) may amend the
individual financial statements of Erst e Group B ank AG, which in turn may have an impact on th ese consolidated financial
statements. The consolidated financial statements have not been accepted by th e Supervisory Board and the financial statements of
Erste Group Bank AG have not been approved by the Supervisory Board at the date of this report. This is also applicable to the
majority of the individual financial statements, which are relevant for the calculatio n of own funds.
Erste Group is subject to the regulatory requirements of Austrian and European supervisory bodies (National Bank, Financial
Market Authority, Single Supervisory Mechanism). These regulations include those pertaining to minimum capital adequacy
requirements, categorisation of exposures and off-balance sheet commitments, credit risk connected with clients of the Group,
market risk (including interest rate and foreign exchange risk) and operational risk.
In addition to the banking entities, some Group companies are subject to regulatory requirements, specifically in relation to asset
management.
Material accounting policies
a) Basis of preparation
The consolidated financial statements of Erste Group for the financial year ending on 31 December 2025 and the related
comparative information were prepared in compliance with applicable IFRS Accounting Standards as adopted by the European
Union on the basis of IAS Regulation (EC) No. 1606/2002. The requirements of Section 59a of the Austrian Banking Act and
Section 245a of the Austrian Commercial Code are fulfilled.
The consolidated financial statements have been prepared on a going concern basis.
Erste Group is subject to regulatory restrictions on capital distributions stemming from the EU-wide capital requirements
regulations applicable to all credit institutions based in the EU. Erste Group does not have any other significant restrictions on its
ability to access or use the assets and settle the liabilities of the Group. Also, the owners of non-controlling interests in Group
subsidiaries do not have rights that can restrict the Group’s ability to access or use the assets and settle the liabilities of the Group.
Except as otherwise indicated, all amounts are stated in millions of euro. The tables in this report may contain rounding
differences. The abbreviations used in the consolidated financial statements of Erste Group are explained in the appendix ‘Glossary’
at the end of this report.
168
b) Foreign currency translation
The consolidated financial statements are presented in euro, which is the functional currency of Erste Group Bank AG, the parent
company of Erste Group. The functional currency is the currency of the primary business environment in which an entity operates.
Each entity in Erste Group determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency.
For foreign currency translation, exchange rates quoted by the central banks in each country are used. For Erste Group entities
with the euro as functional currency, these are the European Central Bank reference rates.
i. Transactions and balances in foreign currency
Transactions in foreign currencies are initially recorded at the functional currency exchange rate effective as of the date of the
transaction. Subsequently, monetary assets and liabilities denominated in foreign currencies are translated at the functional
currency exchange rate as of the balance sheet date. All resulting exchange differences that arise are recognised in the statement of
income under the line item ‘Net trading result’. Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates as of the dates of the initial transactions, i.e. they do not give rise to exchange
differences. Non-monetary items that are measured at fair value (such as equity investments) in a foreign currency are translated
using the exchange rates at the date when the fair value is measured, thus the exchange differences are part of the fair value gains
or losses.
ii. Translation of the statements of Group companies
Assets and liabilities of foreign operations (foreign subsidiaries and branches) are translated into Erste Group’s presentation
currency, the euro, at the rate of exchange as of the balance sheet date (closing rate). Their consolidated statement of income and
consolidated statement of comprehensive income are translated at the average exchange rate of the respective reporting period
calculated on the basis of daily rates. Goodwill, intangible assets and fair value adjustments to the carrying amounts of assets and
liabilities recognised on acquisition of foreign subsidiaries are treated as assets and liabilities of the foreign subsidiaries and are
translated at the closing rate. However, goodwill of Česká spořitelna a.s. is translated at the historical FX rate as allowed by the
transitional provisions in IAS 21.59.
Exchange differences arising on translation are recognised in OCI in the line ‘Currency reserve’ of the statement of comprehensive
income. The accumulated OCI is presented in equity, specifically under ‘Currency reserve’ in the statement of changes in equity.
On disposal of a foreign subsidiary, the cumulative amount of translation differences recognised in other comprehensive income is
recognised in the statement of income under the line item ‘Other operating result’.
c) Material accounting judgements, assumptions and estimates
The consolidated financial statements contain amounts that have been determined on the basis of judgements and by the use of
estimates and assumptions. The estimates and assumptions used are based on historical experience and other factors, such as
planning as well as expectations and forecasts of future events that are currently deemed to be reasonable. As a consequence of the
uncertainty associated with these assumptions and estimates, actual results could in future periods lead to adjustments in the
carrying amounts of the related assets or liabilities. The most significant uses of judgements, assumptions and estimates are
described in the notes of the respective assets and liabilities and relate in particular to:
_ Taxes on income and deferred tax assets ( Note 13 Taxes on income)
_ SPPI assessment of financial instruments (Chapter Financial instruments – Material accounting policies)
_ Business model assessment of financial instruments (Chapter Financial instruments – Material accounting policies)
_ Fair value of financial instruments (Note 26 Fair value of financial instruments )
_ Impairment of financial instruments (Chapter Financial instruments – Material accounting policies, Note 37 Measurement of
expected credit losses and Note 40 Scenarios used in forward looking information and crises effects)
_ Impairment of non-financial assets (Chapter Non-current assets and other investments)
_ Provisions (Note 53 Provisions)
_ Defined employees benefit plans (Note 53 Provisions)
_ Control of subsidiaries (Note 58 Subsidiaries)
_ Significant influence in associates and joint control in joint ventures ( Note 59 Investments in associates and joint ventures)
_ Interest in structured entities (Note 60 Unconsolidated structured entities)
169
d) Application of amended and new IFRS/IAS
The accounting policies adopted are consistent with those used in the previous financial year except for standards and
interpretations that became effective for financial years beginning after 1 January 2025. As regards new standards and
interpretations and their amendments, only those that are relevant for the business of Erste Group are listed below.
EFFECTIVE STANDARDS AND INTERPRETATIONS
The following amendments of standards have become mandatory for the financial year 2025 and have been endorsed by the EU:
_ Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
Application of the amendments in 2025 did not have a significant impact on Erste Group’s financial statements.
STANDARDS AND INTERPRETATIONS NOT YET EFFECTIVE
The standards and amendments shown below were issued by the IASB but are not yet effective. All of them have been endorsed by
the EU.
IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 was issued in April 2024 and become effective for
annual periods beginning on or after 1 January 2027. The standard replaces IAS 1. It sets out requirements for the presentation and
disclosure of information in general purpose financial statements to help ensure they provide relevant information that faithfully
represents an entity’s assets, liabilities, equity, income and expenses.
Application of IFRS 18 will result in adjustments in the structure of the consolidated statement of income of Erste Group driven by
a new mandatory subtotal ‘Operating profit or loss’. New disclosures in the area of management-defined performance measures
will be provided.
Amendments to IFRS 9 and IFRS 7: Amendments to the Classification and Measurement of Financial Instruments. The
amendments to IFRS 7 and IFRS 9 were issued in May 2024 and become effective for annual periods beginning on or after 1
January 2026. Erste Group revised its original intention to early apply these amendments in 2025 and will apply them from 2026.
The amendments to IFRS 9 permit an entity to deem a financial liability that will be settled using an electronic payment system to
be discharged before the settlement date. Further, they bring clarifications for classification of financial assets in the areas of
contractual terms which are consistent with a basic lending agreement, assets with non-recourse features and contractually linked
instruments. The amendments to IFRS 7 bring new disclosure requirements for investment in equity instruments measured at fair
value through other comprehensive income and for contractual terms that could change the timing or amount of contractual cash
flows.
The amendments to IFRS 9 will result in a different way of SPPI assessment for financial assets whose interest is adjusted based on
meeting certain ESG-linked targets by the borrowers. Erste Group will no longer assess them based on whether the effect of the
adjustments is de-minimis but whether the adjusted cash flows could be significantly different from the contractual cash flows of a
financial asset with identical contractual terms but without such an ESG-linked feature. The new assessment is not expected to
change the measurement of the affected financial assets. Other amendments to IFRS 9 are not expected to have a significant impact
on Erste Group’s financial statements. Erste Group will not make use of the option to deem a financial liability that will be settled
using an electronic payment system to be discharged before the settlement date. Amendments to IFRS 7 will result in new
disclosures.
Annual Improvements Volume 11. In July 2024 the IASB issued a set of amendments to various standards. The amendments to
IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 are effective for annual periods beginning on or after 1 January 2026. Application of
these amendments is not expected to have a significant impact on Erste Group’s financial statements.
170
Performance / Return
1. Segment reporting
Erste Group’s segment reporting is based on IFRS 8 Operating Segments, which adopts the management approach. Accordingly,
segment information is prepared on the basis of internal management reporting that is regularly reviewed by the chief operating
decision maker to assess the performance of the segments and make decisions regarding the allocation of resources. Within Erste
Group the function of the chief operating decision maker is exercised by the Management Board. Erste Group uses a matrix
organisational structure with geographical segmentation and business segments. Since the chief operating decision maker performs
the steering primarily based on geographical segments, those are defined as operating segments according to IFRS 8. In order to
provide more comprehensive information, the performance of the business segments is reported additionally.
Geographical segmentation (operating segments)
For the purpose of segment reporting geographical segments are defined as operating segments, for which the information is pre-
sented on the basis of the booking entity’s location (not the country of risk). In case of information regarding a partial group, the
allocation is based on the location of the respective parent entity according to the local management responsibility.
Geographical areas are defined according to the core markets in which Erste Group operates. Based on the locations of the banking
and other financial institution participations, the geographical areas consist of two core markets, Austria and Central and Eastern
Europe and a residual segment Other that comprises the remaining business activities of Erste Group outside its core markets as
well as the reconciliation to the consolidated accounting result.
The geographical area Austria consists of the following three operating segments:
_ The Erste Bank Oesterreich & Subsidiaries (EBOe & Subsidiaries) segment comprises Erste Bank der oesterreichischen
Sparkassen AG (Erste Bank Oesterreich) and its main subsidiaries (e.g. sBausparkasse, Tiroler Sparkasse, Sparkasse Hainburg).
Salzburger Sparkasse was merged with Erste Bank Oesterreich as of 1 August 2025.
_ The Savings banks segment includes those savings banks which are members of the Haftungsverbund (cross-guarantee system)
of the Austrian savings banks sector and in which Erste Group does not hold a majority stake but which are fully controlled
according to IFRS 10. The fully or majority owned Erste Bank Oesterreich, Tiroler Sparkasse, and Sparkasse Hainburg are not
part of the Savings Banks segment.
_ The Other Austria segment comprises Erste Group Bank AG (Holding) with its Corporates and Group Markets business, Erste
Group Immorent GmbH, Erste Asset Management GmbH and Intermarket Bank AG.
The geographical area Central and Eastern Europe (CEE) consists of six operating segments covering Erste Group’s banking
subsidi-aries located in the respective CEE countries:
_ Czech Republic (comprising Česká spořitelna Group)
_ Slovakia (comprising Slovenská sporitel’ňa Group)
_ Romania (comprising Banca Comercială Română Group)
_ Hungary (comprising Erste Bank Hungary Group)
_ Croatia (comprising Erste Bank Croatia Group)
_ Serbia (comprising Erste Bank Serbia Group).
The residual segment Other covers mainly centrally managed activities and items that are not directly allocated to other segments.
It comprises the corporate center of Erste Group Bank AG (and thus dividends and the refinancing costs from participations,
general administrative expenses), internal service providers (facility management, IT, procurement), the banking tax of Erste
Group Bank AG as well as free capital of Erste Group (defined as the difference of the total average IFRS equity and the average
171
economical equity allocated to the segments). Asset/Liability Management of Erste Group Bank AG as well as the reconciliation to
the consolidated accounting result (e.g. intragroup eliminations, dividend eliminations) are also part of the segment Other.
Intragroup eliminations are equal to the Intragroup eliminations shown in the business segmentation view (see the table ‘Business
segments (2)’).
Business segmentation
Apart from geographical segments, which are Erste Group’s operating segments, business segments are reported as well.
Retail. The Retail segment comprises the business with private individuals, micros and free professionals within the responsibility
of account managers in the retail network. This business is operated by the local banks in cooperation with their subsidiaries such
as leasing and asset management companies with a focus on simple products ranging from mortgage and consumer loans,
investment products, current accounts, savings products to credit cards and cross selling products such as leasing, insurance and
building society products.
Corporates. The Corporates segment comprises business done with corporate customers of different turnover size (small and
medium-sized enterprises and Large Corporate customers) as well as commercial real estate and public sector business.
Group Markets. The Group Markets (GM) segment comprises trading and markets services as well as customer business with
financial institutions. It includes all activities related to the trading books of Erste Group, including the execution of trade, market
making and short-term liquidity management. In addition, it comprises business connected with servicing financial institutions as
clients.
Asset/Liability Management & Local Corporate Center. The Asset/Liability Management & Local Corporate Center (ALM &
LCC) segment includes all asset/liability management functions – local and of Erste Group Bank AG (Holding) – as well as the
local corporate centers which comprise all non-core banking business activities such as internal service providers and
reconciliation items to local entity results. The corporate center of Erste Group Bank AG is included in the Group Corporate Center
segment.
Savings Banks. The Savings Banks segment is identical to the operating segment Savings banks.
Group Corporate Center. The Group Corporate Center (GCC) segment covers mainly centrally managed activities and items that
are not directly allocated to other segments. It comprises the corporate center of Erste Group Bank AG (and thus dividends and the
refinancing costs from participations, general administrative expenses), internal service providers (facility management, IT,
procurement), the banking tax of Erste Group Bank AG as well as free capital of Erste Group (defined as the difference of the total
average IFRS equity and the average economical equity allocated to the segments).
Intragroup Elimination. Intragroup Elimination (IC) is not defined as a segment but is the reconciliation to the consolidated ac-
counting result. It includes intragroup eliminations between participations of Erste Group (e.g. intragroup funding, internal cost
charges). Intragroup eliminations within partial groups are disclosed in the respective segments.
Dividend elimination between Erste Group Bank AG and its fully consolidated subsidiaries is performed in Group Corporate
Center. Consolidation differences arising between the segments, which are eliminated over the lifespan of the underlying
transaction, are part of Group Corporate Center.
Measurement
The profit and loss statement of the segment report is based on the measures reported to the Erste Group Management Board for
the purpose of allocating resources to the segments and assessing their performance. Management reporting as well as the segment
172
report of Erste Group are based on IFRS. Accounting standards and methods as well as measurements used in segment reporting
are the same as for the consolidated financial statements of accounting.
Interest revenues are not reported separately from interest expenses for each reportable segment. Those measures are reported on
the net basis within the position ‘Net interest income’ as interest revenues and interest expenses are neither included into the
measure of segment profit or loss reviewed by the chief operating decision maker nor otherwise regularly provided to the chief
operating decision maker. Chief operating decision maker relies solely on net interest income to assess the performance of the
segments and make decisions about resources to be allocated to the segments. Net fee and commission income and Other operating
result are reported on a net basis according to the regular reporting to the chief operating decision maker.
Capital consumption per segment is regularly reviewed by the management of Erste Group to assess the performance of the seg-
ments. The average allocated capital is determined by the credit risk, market risk, operational risk and business strategic risk.
According to the regular internal reporting to Erste Group Management Board, total assets and total liabilities as well as risk
weighted assets and allocated capital are disclosed per segment. Total average allocated capital for the Group equals average total
equity of the Group.
For measuring and assessing the profitability of segments within Erste Group, such key measures as return on allocated capital and
cost/income ratio are used. Return on allocated capital is defined as net result for the period before minorities in relation to the
aver-age allocated capital of the respective segment. Cost/income ratio is defined as operating expenses (general administrative
expenses) in relation to operating income (total of net interest income, net fee and commission income, dividend income, net
trading result, gains/losses from financial instruments measured at fair value through profit or loss, net result from equity method
investments, rental income from investment properties and other operating lease).
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Operating segments: Geographical segmentation – overview

| Austria | Central and Eastern Europe | Other | Group total
in EUR million | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25
Net interest income | 3,520 | 3,386 | 3,749 | 3,893 | 259 | 509 | 7,528 | 7,788
Net fee and commission income | 1,625 | 1,788 | 1,434 | 1,550 | -121 | -147 | 2,938 | 3,191
Dividend income | 27 | 24 | 4 | 4 | 8 | 8 | 39 | 36
Net trading result | 94 | 29 | 359 | 355 | 66 | -71 | 519 | 313
Gains/losses from financial instruments at FVPL | -4 | 70 | 29 | 18 | -107 | 19 | -82 | 107
Net result from equity method investments | 11 | 7 | 17 | 18 | -2 | 20 | 27 | 46
Rental income from investment properties & other operating leases | 153 | 158 | 39 | 36 | 17 | -15 | 210 | 179
General administrative expenses | -2,535 | -2,662 | -2,455 | -2,597 | -289 | -325 | -5,279 | -5,583
thereof depreciation and amortization | -175 | -184 | -278 | -292 | -95 | -84 | -547 | -560
Gains/losses from derecognition of financial assets at AC | -6 | -10 | -57 | -58 | -27 | 19 | -90 | -49
Other gains/losses from derecognition of financial instruments not at FVPL | 0 | -2 | -48 | -4 | 47 | 14 | -1 | 9
Impairment result from financial instruments | -398 | -343 | 5 | -134 | -4 | 0 | -397 | -478
Other operating result | -82 | -56 | -254 | -117 | -78 | 16 | -414 | -158
Levies on banking activities | -14 | -41 | -204 | -238 | -27 | -92 | -245 | -372
Pre-tax result from continuing operations | 2,405 | 2,389 | 2,823 | 2,964 | -231 | 48 | 4,997 | 5,400
Taxes on income | -560 | -541 | -568 | -564 | 75 | 1 | -1,053 | -1,103
Net result for the period | 1,845 | 1,848 | 2,255 | 2,400 | -156 | 49 | 3,945 | 4,297
Net result attributable to non-controlling interests | 727 | 679 | 85 | 84 | 7 | 25 | 819 | 788
Net result attributable to owners of the parent | 1,118 | 1,169 | 2,170 | 2,316 | -163 | 24 | 3,125 | 3,510
Operating income | 5,427 | 5,462 | 5,631 | 5,874 | 121 | 324 | 11,178 | 11,659
Operating expenses | -2,535 | -2,662 | -2,455 | -2,597 | -289 | -325 | -5,279 | -5,583
Operating result | 2,892 | 2,800 | 3,176 | 3,277 | -169 | -1 | 5,900 | 6,076
Risk-weighted assets (credit risk, eop) | 70,355 | 64,163 | 61,651 | 58,758 | 1,694 | -2,699 | 133,700 | 120,222
Average allocated capital | 10,570 | 11,140 | 10,872 | 10,923 | 8,105 | 10,677 | 29,547 | 32,740
Cost/income ratio | 46.7% | 48.7% | 43.6% | 44.2% | >100% | >100% | 47.2% | 47.9%
Return on allocated capital | 17.5% | 16.6% | 20.7% | 22.0% | -1.9% | 0.5% | 13.4% | 13.1%
Total assets (eop) | 209,416 | 211,492 | 163,716 | 173,289 | -19,396 | -16,207 | 353,736 | 368,574
Total liabilities excluding equity (eop) | 160,985 | 158,799 | 148,325 | 156,941 | 13,659 | 18,170 | 322,969 | 333,909
Impairments | -401 | -328 | 5 | -133 | -4 | 19 | -399 | -442
Net impairment loss on financial assets AC/FVTOCI and finance lease receivables | -352 | -355 | 7 | -132 | 2 | 1 | -343 | -486
Net impairment loss on commitments and guarantees given | -46 | 12 | -2 | -3 | -6 | -1 | -54 | 8
Impairment of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Net impairment on investments in subsidiaries, joint ventures and associates | 0 | 0 | 0 | 8 | -1 | 20 | -1 | 27
Net impairment on other non-financial assets | -3 | 15 | 1 | -6 | 1 | 0 | -1 | 9

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Operating segments: Geographical area Austria

| EBOe & Subsidiaries | Savings Banks | Other Austria | Austria total
in EUR million | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25
Net interest income | 1,102 | 1,035 | 1,838 | 1,756 | 580 | 595 | 3,520 | 3,386
Net fee and commission income | 549 | 591 | 721 | 770 | 356 | 427 | 1,625 | 1,788
Dividend income | 8 | 9 | 11 | 7 | 8 | 7 | 27 | 24
Net trading result | 29 | 2 | 40 | 11 | 25 | 15 | 94 | 29
Gains/losses from financial instruments at FVPL | 1 | 20 | -2 | 34 | -3 | 16 | -4 | 70
Net result from equity method investments | 11 | 8 | 0 | 0 | 0 | -1 | 11 | 7
Rental income from investment properties & other operating leases | 61 | 62 | 39 | 37 | 53 | 58 | 153 | 158
General administrative expenses | -786 | -810 | -1,332 | -1,403 | -417 | -448 | -2,535 | -2,662
thereof depreciation and amortization | -49 | -53 | -85 | -87 | -41 | -44 | -175 | -184
Gains/losses from derecognition of financial assets at AC | -6 | -13 | 1 | 0 | -1 | 2 | -6 | -10
Other gains/losses from derecognition of financial instruments not at FVPL | 0 | 0 | -2 | -1 | 2 | 0 | 0 | -2
Impairment result from financial instruments | -146 | -128 | -248 | -213 | -3 | -3 | -398 | -343
Other operating result | -38 | -52 | -40 | -38 | -4 | 33 | -82 | -56
Levies on banking activities | -7 | -20 | -7 | -20 | 0 | -1 | -14 | -41
Pre-tax result from continuing operations | 785 | 725 | 1,026 | 960 | 594 | 703 | 2,405 | 2,389
Taxes on income | -192 | -162 | -232 | -220 | -136 | -159 | -560 | -541
Net result for the period | 593 | 564 | 794 | 740 | 458 | 544 | 1,845 | 1,848
Net result attributable to non-controlling interests | 24 | 26 | 692 | 641 | 11 | 11 | 727 | 679
Net result attributable to owners of the parent | 569 | 537 | 102 | 99 | 447 | 533 | 1,118 | 1,169
Operating income | 1,762 | 1,728 | 2,648 | 2,616 | 1,017 | 1,118 | 5,427 | 5,462
Operating expenses | -786 | -810 | -1,332 | -1,403 | -417 | -448 | -2,535 | -2,662
Operating result | 975 | 917 | 1,316 | 1,212 | 601 | 670 | 2,892 | 2,800
Risk-weighted assets (credit risk, eop) | 17,100 | 16,158 | 30,355 | 29,158 | 22,900 | 18,848 | 70,355 | 64,163
Average allocated capital | 2,360 | 2,684 | 5,271 | 5,638 | 2,940 | 2,818 | 10,570 | 11,140
Cost/income ratio | 44.6% | 46.9% | 50.3% | 53.7% | 41.0% | 40.1% | 46.7% | 48.7%
Return on allocated capital | 25.1% | 21.0% | 15.1% | 13.1% | 15.6% | 19.3% | 17.5% | 16.6%
Total assets (eop) | 57,456 | 59,704 | 84,989 | 89,557 | 66,970 | 62,231 | 209,416 | 211,492
Total liabilities excluding equity (eop) | 54,070 | 56,270 | 77,201 | 80,847 | 29,714 | 21,682 | 160,985 | 158,799
Impairments | -146 | -128 | -251 | -214 | -3 | 14 | -401 | -328
Net impairment loss on financial assets AC/FVTOCI and finance lease receivables | -146 | -124 | -215 | -205 | 9 | -26 | -352 | -355
Net impairment loss on commitments and guarantees given | -1 | -4 | -33 | -8 | -12 | 24 | -46 | 12
Impairment of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Net impairment on investments in subsidiaries, joint ventures and associates | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Net impairment on other non-financial assets | 0 | 0 | -3 | -1 | 0 | 16 | -3 | 15

175
Operating segments: Geographical area Central and Eastern Europe

| Czech Republic | Slovakia | Romania | Hungary | Croatia | Serbia | Central and Eastern Europe total
in EUR million | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25
Net interest income | 1,464 | 1,551 | 552 | 615 | 775 | 778 | 425 | 417 | 421 | 418 | 112 | 114 | 3,749 | 3,893
Net fee and commission income | 509 | 533 | 232 | 242 | 227 | 241 | 305 | 358 | 133 | 144 | 27 | 32 | 1,434 | 1,550
Dividend income | 2 | 2 | 0 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 4
Net trading result | 136 | 131 | 19 | 22 | 99 | 106 | 77 | 67 | 16 | 16 | 12 | 13 | 359 | 355
Gains/losses from financial instruments at FVPL | -2 | 2 | 7 | -1 | 5 | 4 | 18 | 10 | 1 | 2 | 0 | 0 | 29 | 18
Net result from equity method investments | 10 | 11 | 4 | 7 | 2 | -1 | 0 | 0 | 1 | 2 | 0 | 0 | 17 | 18
Rental income from investment properties & other operating leases | 9 | 11 | 0 | 0 | 7 | 3 | 11 | 8 | 7 | 7 | 4 | 7 | 39 | 36
General administrative expenses | -967 | -1,024 | -354 | -376 | -456 | -475 | -301 | -325 | -280 | -293 | -96 | -104 | -2,455 | -2,597
thereof depreciation and amortization | -110 | -114 | -34 | -35 | -52 | -54 | -36 | -41 | -30 | -29 | -15 | -19 | -278 | -292
Gains/losses from derecognition of financial assets at AC | -34 | -54 | -10 | 0 | -5 | 0 | -7 | -3 | 0 | 0 | 0 | 0 | -57 | -58
Other gains/losses from derecognition of financial instruments not at FVPL | 0 | -4 | 0 | 0 | -1 | 0 | -41 | 0 | -5 | 0 | 0 | 0 | -48 | -4
Impairment result from financial instruments | 10 | -18 | -13 | -51 | -21 | -50 | 20 | 3 | 18 | -8 | -9 | -10 | 5 | -134
Other operating result | 10 | 69 | 1 | -13 | -80 | 12 | -171 | -181 | -15 | -5 | 2 | 1 | -254 | -117
Levies on banking activities | 0 | 0 | 0 | -1 | -37 | -63 | -168 | -175 | 0 | 0 | 0 | 0 | -204 | -238
Pre-tax result from continuing operations | 1,147 | 1,210 | 437 | 444 | 551 | 619 | 337 | 355 | 298 | 282 | 53 | 52 | 2,823 | 2,964
Taxes on income | -198 | -204 | -163 | -152 | -87 | -98 | -56 | -54 | -59 | -50 | -6 | -6 | -568 | -564
Net result for the period | 949 | 1,006 | 275 | 292 | 464 | 521 | 281 | 301 | 239 | 233 | 47 | 47 | 2,255 | 2,400
Net result attributable to non-controlling interests | 0 | 0 | 0 | 0 | 1 | 1 | 0 | 0 | 75 | 73 | 9 | 10 | 85 | 84
Net result attributable to owners of the parent | 949 | 1,006 | 275 | 292 | 463 | 521 | 281 | 301 | 164 | 159 | 38 | 37 | 2,170 | 2,316
Operating income | 2,128 | 2,242 | 814 | 885 | 1,115 | 1,132 | 837 | 860 | 580 | 588 | 156 | 165 | 5,631 | 5,874
Operating expenses | -967 | -1,024 | -354 | -376 | -456 | -475 | -301 | -325 | -280 | -293 | -96 | -104 | -2,455 | -2,597
Operating result | 1,160 | 1,218 | 460 | 509 | 659 | 657 | 536 | 536 | 300 | 295 | 60 | 61 | 3,176 | 3,277
Risk-weighted assets (credit risk, eop) | 27,012 | 23,905 | 10,428 | 9,527 | 10,122 | 11,141 | 4,930 | 4,717 | 7,140 | 7,145 | 2,019 | 2,322 | 61,651 | 58,758
Average allocated capital | 4,506 | 4,439 | 1,530 | 1,430 | 2,122 | 2,276 | 1,314 | 1,231 | 1,037 | 1,184 | 363 | 363 | 10,872 | 10,923
Cost/income ratio | 45.5% | 45.7% | 43.4% | 42.5% | 40.9% | 42.0% | 35.9% | 37.7% | 48.3% | 49.8% | 61.6% | 62.9% | 43.6% | 44.2%
Return on allocated capital | 21.1% | 22.7% | 18.0% | 20.4% | 21.9% | 22.9% | 21.4% | 24.5% | 23.1% | 19.6% | 13.0% | 12.8% | 20.7% | 22.0%
Total assets (eop) | 80,607 | 84,108 | 26,392 | 28,013 | 24,286 | 25,880 | 12,181 | 13,642 | 16,507 | 17,626 | 3,744 | 4,020 | 163,716 | 173,289
Total liabilities excluding equity (eop) | 74,461 | 77,900 | 23,875 | 25,588 | 21,473 | 22,382 | 10,579 | 11,847 | 14,681 | 15,760 | 3,255 | 3,465 | 148,325 | 156,941
Impairments | 18 | -30 | -13 | -42 | -33 | -53 | 24 | 10 | 18 | -8 | -9 | -10 | 5 | -133
Net impairment loss on financial assets AC/FVTOCI and finance lease receivables | 16 | -6 | -10 | -52 | -42 | -70 | 19 | 0 | 33 | 5 | -8 | -9 | 7 | -132
Net impairment loss on commitments and guarantees given | -6 | -12 | -3 | 1 | 20 | 20 | 1 | 3 | -14 | -13 | -1 | -1 | -2 | -3
Impairment of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Net impairment on investments in subsidiaries, joint ventures and associates | 0 | 0 | 0 | 8 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8
Net impairment on other non-financial assets | 8 | -12 | 1 | 2 | -11 | -3 | 4 | 6 | 0 | 0 | 0 | 0 | 1 | -6

176
Business segments (1)

| Retail | Corporates | Group Markets | ALM&LCC
in EUR million | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25
Net interest income | 3,151 | 3,217 | 1,865 | 1,795 | 341 | 382 | -62 | 110
Net fee and commission income | 1,580 | 1,709 | 440 | 485 | 333 | 395 | -106 | -118
Dividend income | 1 | 1 | 2 | 2 | 6 | 5 | 12 | 12
Net trading result | 173 | 196 | 115 | 123 | 102 | 68 | 96 | -82
Gains/losses from financial instruments at FVPL | 16 | 8 | -13 | 13 | 7 | 4 | -121 | 16
Net result from equity method investments | 9 | 12 | 3 | 3 | 0 | 0 | 15 | 10
Rental income from investment properties & other operating leases | 11 | 13 | 138 | 106 | 1 | 1 | 36 | 37
General administrative expenses | -2,573 | -2,710 | -682 | -732 | -287 | -311 | -131 | -121
thereof depreciation and amortization | -274 | -296 | -69 | -74 | -15 | -17 | -11 | -2
Gains/losses from derecognition of financial assets at AC | 0 | 0 | -2 | -1 | 0 | 3 | -44 | -50
Other gains/losses from derecognition of financial instruments not at FVPL | 0 | 0 | 2 | 0 | 0 | 0 | -40 | 9
Impairment result from financial instruments | -38 | -145 | -129 | -129 | 4 | -2 | 19 | 11
Other operating result | -109 | -38 | -97 | -80 | -17 | -13 | -73 | -5
Levies on banking activities | -110 | -132 | -67 | -86 | -12 | -10 | -23 | -31
Pre-tax result from continuing operations | 2,221 | 2,264 | 1,642 | 1,586 | 491 | 532 | -398 | -172
Taxes on income | -441 | -438 | -310 | -314 | -99 | -109 | 17 | 19
Net result for the period | 1,780 | 1,826 | 1,332 | 1,272 | 393 | 423 | -381 | -153
Net result attributable to non-controlling interests | 34 | 33 | 67 | 62 | 5 | 6 | 15 | 21
Net result attributable to owners of the parent | 1,746 | 1,793 | 1,266 | 1,210 | 388 | 417 | -396 | -174
Operating income | 4,941 | 5,157 | 2,550 | 2,528 | 790 | 855 | -129 | -15
Operating expenses | -2,573 | -2,710 | -682 | -732 | -287 | -311 | -131 | -121
Operating result | 2,368 | 2,447 | 1,868 | 1,795 | 504 | 544 | -260 | -136
Risk-weighted assets (credit risk, eop) | 27,799 | 29,858 | 63,620 | 57,898 | 4,285 | 3,477 | 6,738 | 3,068
Average allocated capital | 3,988 | 4,070 | 6,787 | 6,676 | 1,077 | 996 | 6,323 | 6,957
Cost/income ratio | 52.1% | 52.6% | 26.8% | 29.0% | 36.3% | 36.4% | >100% | >100%
Return on allocated capital | 44.6% | 44.9% | 19.6% | 19.1% | 36.4% | 42.5% | -6.0% | -2.2%
Total assets (eop) | 81,035 | 88,180 | 84,201 | 88,855 | 47,398 | 42,479 | 96,936 | 98,284
Total liabilities excluding equity (eop) | 119,385 | 125,991 | 46,346 | 49,309 | 44,444 | 36,295 | 77,440 | 81,235
Impairments | -38 | -146 | -132 | -113 | 5 | -2 | 23 | 13
Net impairment loss on financial assets AC/FVTOCI and finance lease receivables | -48 | -133 | -109 | -162 | 8 | 5 | 20 | 9
Net impairment loss on commitments and guarantees given | 10 | -12 | -20 | 32 | -4 | -6 | -1 | 2
Impairment of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Net impairment on investments in subsidiaries, joint ventures and associates | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8
Net impairment on other non-financial assets | 0 | -1 | -3 | 16 | 0 | 0 | 4 | -6

177
Business segments (2)

| Savings Banks | Group Corporate Center | Intragroup Elimination | Group total
in EUR million | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25 | 1-12 24 | 1-12 25
Net interest income | 1,838 | 1,756 | 363 | 501 | 32 | 27 | 7,528 | 7,788
Net fee and commission income | 721 | 770 | 10 | -14 | -40 | -36 | 2,938 | 3,191
Dividend income | 11 | 7 | 8 | 8 | 0 | 0 | 39 | 36
Net trading result | 40 | 11 | 2 | 2 | -9 | -5 | 519 | 313
Gains/losses from financial instruments at FVPL | -2 | 34 | 30 | 32 | 0 | 0 | -82 | 107
Net result from equity method investments | 0 | 0 | -2 | 20 | 0 | 0 | 27 | 46
Rental income from investment properties & other operating leases | 39 | 37 | 7 | 8 | -23 | -24 | 210 | 179
General administrative expenses | -1,332 | -1,403 | -1,240 | -1,353 | 966 | 1,048 | -5,279 | -5,583
thereof depreciation and amortization | -85 | -87 | -97 | -87 | 3 | 4 | -547 | -560
Gains/losses from derecognition of financial assets at AC | 1 | 0 | 0 | 0 | -45 | -2 | -90 | -49
Other gains/losses from derecognition of financial instruments not at FVPL | -2 | -1 | -7 | 0 | 46 | 2 | -1 | 9
Impairment result from financial instruments | -248 | -213 | -5 | 0 | 0 | 0 | -397 | -478
Other operating result | -40 | -38 | 848 | 1,025 | -927 | -1,010 | -414 | -158
Levies on banking activities | -7 | -20 | -27 | -92 | 0 | 0 | -245 | -372
Pre-tax result from continuing operations | 1,026 | 960 | 15 | 229 | 0 | 0 | 4,997 | 5,400
Taxes on income | -232 | -220 | 13 | -40 | 0 | 0 | -1,053 | -1,103
Net result for the period | 794 | 740 | 27 | 189 | 0 | 0 | 3,945 | 4,297
Net result attributable to non-controlling interests | 692 | 641 | 7 | 25 | 0 | 0 | 819 | 788
Net result attributable to owners of the parent | 102 | 99 | 20 | 164 | 0 | 0 | 3,125 | 3,510
Operating income | 2,648 | 2,616 | 418 | 557 | -40 | -38 | 11,178 | 11,659
Operating expenses | -1,332 | -1,403 | -1,240 | -1,353 | 966 | 1,048 | -5,279 | -5,583
Operating result | 1,316 | 1,212 | -822 | -796 | 926 | 1,010 | 5,900 | 6,076
Risk-weighted assets (credit risk, eop) | 30,355 | 29,158 | 901 | -3,237 | 0 | 0 | 133,700 | 120,222
Average allocated capital | 5,271 | 5,638 | 6,101 | 8,403 | 0 | 0 | 29,547 | 32,740
Cost/income ratio | 50.3% | 53.7% | >100% | >100% | >100% | >100% | 47.2% | 47.9%
Return on allocated capital | 15.1% | 13.1% | 0.4% | 2.2% |  |  | 13.4% | 13.1%
Total assets (eop) | 84,989 | 89,557 | 4,021 | 3,534 | -44,844 | -42,315 | 353,736 | 368,574
Total liabilities excluding equity (eop) | 77,201 | 80,847 | 3,021 | 2,549 | -44,869 | -42,317 | 322,969 | 333,909
Impairments | -251 | -214 | -5 | 19 | 0 | 0 | -399 | -442
Net impairment loss on financial assets AC/FVTOCI and finance lease receivables | -215 | -205 | 1 | 1 | 0 | 0 | -343 | -486
Net impairment loss on commitments and guarantees given | -33 | -8 | -6 | -1 | 0 | 0 | -54 | 8
Impairment of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Net impairment on investments in subsidiaries, joint ventures and associates | 0 | 0 | -1 | 20 | 0 | 0 | -1 | 27
Net impairment on other non-financial assets | -3 | -1 | 1 | 0 | 0 | 0 | -1 | 9

178
2. Net interest income
Net interest income is broken down into line items of interest income, other similar income, interest expenses and other similar
expenses. The distinguishing factor is whether the EIR method is mandatorily applied for recognition of interest income or expense
in accordance with IFRS 9.
‘Interest income’ relates to interest revenue from financial assets measured at amortised cost and at fair value through other
comprehensive income. It is calculated using the EIR method as discussed in chapter ‘Financial instruments – Material accounting
policies’.
‘Other similar income’ captures interest-like sources of income resulting from non-derivative financial assets measured at fair value
through profit or loss, held for trading derivatives, hedge accounting derivatives, finance lease receivables and negative interest on
financial liabilities.
‘Interest expenses’ relate to interest expense from financial liabilities measured at amortised cost calculated using effective interest
rate.
‘Other similar expenses’ capture interest-like sources of expense resulting from non-derivative financial liabilities measured at fair
value through profit or loss, held for trading derivatives, hedge accounting derivatives, lease liabilities, provisions recognised under
IFRS 9 and IAS 37 (unwinding of the time value of the money effect due to passage of time) and net defined liabilities (net interest
cost on severance payments, pensions and jubilee obligations) under IAS 19.
As regards types of financial instruments, interest income and other similar income include interest income on loans and advances
to banks and customers, on cash balances, on debt securities in all measurement categories of financial assets, on trade and other
receivables and on finance lease receivables. Interest expenses and other similar expenses include interest paid on deposits from
customers, deposits from banks, debt securities issued and other financial liabilities in all measurement categories of financial
liabilities and interest paid on lease liabilities. Net interest income also includes interest on derivative financial instruments.
Interest income also includes modification gains and losses recognised on financial assets in Stage 1. Further, the unamortised
balance of the origination fees/transaction costs upon derecognition of assets in Stage 1 and 2 considered in the effective interest
rate is presented as interest income at the derecognition date.

in EUR million | 1-12 24 | 1-12 25
Interest income | 15,353 | 13,693
Financial assets at AC | 14,968 | 13,282
Financial assets at FVOCI | 385 | 411
Other similar income | 3,756 | 2,914
Non-trading financial assets at FVPL | 96 | 128
Financial assets HfT | 3,317 | 2,489
Hedge accounting derivatives, interest rate risk | 34 | 14
Other assets | 295 | 272
Negative interest from financial liabilities | 15 | 10
Interest and other similar income | 19,109 | 16,607
Interest expenses | -7,549 | -5,990
Financial liabilities at AC | -7,549 | -5,990
Other similar expenses | -4,032 | -2,829
Financial liabilities at FVPL | -353 | -305
Financial liabilities HfT | -3,067 | -2,272
Hedge accounting derivatives, interest rate risk | -558 | -196
Other liabilities | -54 | -54
Negative interest from financial assets | -1 | -1
Interest and other similar expenses | -11,581 | -8,819
Net interest income | 7,528 | 7,788

An amount of EUR 145 million (2024: EUR 169 million) relating to impaired financial assets is included in interest income.
179
3. Net fee and commission income
Erste Group earns fee and commission income from a diverse range of services that it provides to its customers. Fee and
commission income is measured based on the consideration specified in the contract with a customer. Erste Group recognises
revenue when it transfers a promised service to a customer.
Fees earned for the provision of services over a period of time are accrued over that period. These fees include commitment fees,
premiums received for financial guarantees and other fees from lending business, commission income from asset management,
custody and other management and advisory fees. Services provided over a period of time also include certain payment services like
periodic card fees.
Fee income earned from providing transaction services, such as arranging the acquisition and sale of shares or other securities on
behalf of customers or foreign exchange transactions, as well as commission income earned from services such as the sale of
collective investments and insurance products, are recognised upon completion of the underlying transaction. Transaction based
services also include certain payment services like withdrawal fees.
A contract with a customer that results in the recognition of a financial instrument in the Group’s financial statements may be
partially in the scope of IFRS 9 and partially in the scope of IFRS 15. If this is the case, then Erste Group first applies IFRS 9 to
separate and measure the part of the contract that is in the scope of IFRS 9 and then applies IFRS 15 to the residual. For example,
loan servicing fees agreed in a loan contract that are not integral to the effective interest rate of a financial instrument are included
in the net fee and commission income.

| 1-12 24 | 1-12 25
in EUR million | Income | Expenses | Income | Expenses
Securities | 314 | -57 | 378 | -66
Issues | 53 | -2 | 76 | -2
Transfer orders | 249 | -43 | 287 | -51
Other | 12 | -12 | 15 | -13
Clearing and settlement | 2 | -1 | 3 | -1
Asset management | 667 | -43 | 753 | -52
Custody | 153 | -21 | 165 | -24
Fiduciary transactions | 1 | 0 | 1 | 0
Payment services | 1,614 | -291 | 1,688 | -338
Card business | 496 | -188 | 632 | -223
Current accounts from customers | 686 | 0 | 847 | 0
Other | 432 | -103 | 209 | -114
Customer resources distributed but not managed | 318 | -13 | 348 | -15
Collective investment | 28 | -2 | 37 | -3
Insurance products | 261 | -2 | 281 | -1
Foreign exchange transactions | 26 | -2 | 27 | -2
Other | 3 | -7 | 3 | -9
Structured finance | 6 | 0 | 7 | 0
Servicing fees from securitization activities | 0 | -2 | 0 | -15
Lending business | 252 | -46 | 329 | -65
Guarantees given, guarantees received | 100 | -5 | 97 | -14
Loan commitments given, loan commitments received | 60 | -1 | 77 | -1
Other lending business | 92 | -40 | 155 | -50
Other | 127 | -41 | 137 | -44
Total fee and commission income and expenses | 3,454 | -517 | 3,810 | -620
Net fee and commission income | 2,938 | 3,191

Asset management, custody and fiduciary transactions fees relate to fees earned by Erste Group on trust and other fiduciary
activities in which Erste Group holds or invests assets on behalf of its customers and amount to EUR 844 million on a net basis
(2024: EUR 756 million). Net fee and commission income above include income of EUR 1,233 million (2024: EUR 1,126 million)
relating to financial assets and financial liabilities not measured at FVPL.
The total amount of revenue from administrative and agency services to third parties amounts to EUR 1,177 million (2024:
EUR 1,061 million).
180
4. Dividend income
Dividend income is recognised when the right to receive the payment is established. This line item includes dividends from all
shares and other equity investments, i.e. from those that are held for trading, non-trading equity instruments at FVPL and at
FVOCI.

in EUR million | 1-12 24 | 1-12 25
Financial assets HfT | 7 | 6
Non-trading financial assets at FVPL | 22 | 18
Financial assets at FVOCI | 10 | 13
Dividend income | 39 | 36

5. Net trading result
Results arising from trading activities include all gains and losses from changes in the fair value (clean price) of financial assets and
financial liabilities classified as held for trading, including all derivatives not designated as hedging instruments and gains and
losses from their derecognition. Further, the net trading result includes any ineffective portions recorded in fair value and cash flow
hedge transactions. Also, foreign exchange gains and losses on all monetary assets and liabilities and from spot currency
conversions are included here.
The Accounting Policy for recognition of foreign exchange gains and losses is described in the chapter ‘Material accounting policies’,
b) ‘Foreign currency translations’, i. ‘Transactions and balances in foreign currency’. Detailed information relating to hedge
accounting can be found in Note 27 Hedge accounting.

in EUR million | 1-12 24 | 1-12 25
Securities and derivatives trading | 116 | -38
Foreign exchange transactions | 419 | 354
Result from hedge accounting | -16 | -3
Net trading result | 519 | 313

6. Gains/losses from financial instruments measured at fair value through profit or
loss
Changes in fair value (clean price) of non-trading financial assets at fair value through profit or loss, including gains and losses on
their derecognition, are presented under this line item. This concerns both non-trading financial assets designated and those
mandatorily measured at FVPL. Gains and losses (clean price) of financial liabilities designated at FVPL, including gains and losses
on their derecognition, are also presented under this line item. However, the fair value changes resulting from own credit risk of
the liability are recognised in OCI.

in EUR million | 1-12 24 | 1-12 25
Result from measurement/sale of financial assets designated at FVPL | 3 | 0
Result from measurement/repurchase of financial liabilities designated at FVPL | -170 | 5
Result from financial assets and liabilities designated at FVPL | -168 | 5
Result from measurement/sale of financial assets mandatorily at FVPL | 86 | 102
Gains/losses from financial instruments measured at fair value through profit or loss | -82 | 107

7. Rental income from investment properties & other operating leases
Rental income from investment properties and other operating leases is recognised on a straight-line basis over the lease term.
Operating expenses for investment properties are reported in line item ‘Other operating result’. For further details Erste Group
refers to Note 12 Other operating result.

in EUR million | 1-12 24 | 1-12 25
Investment properties | 132 | 140
Other operating leases | 77 | 39
Rental income from investment properties & other operating leases | 210 | 179

181
8. General administrative expenses
PERSONNEL EXPENSES
Personnel expenses include wages and salaries, expenses for variable remuneration, statutory and voluntary social security
contributions, staff-related taxes and levies. They also include service costs for severance payments, pension and jubilee obligations
and remeasurements of jubilee obligations. Furthermore, restructuring provision expenses may be part of personnel expenses.
Information about remuneration of management including performance-linked remuneration can be found in Note 61 Related-
party transactions. Information about share-based payments to the Management Board and to employees can be found in Note 62
Share-based payments.
OTHER ADMINISTRATIVE EXPENSES
Other administrative expenses include primarily information technology expenses, expenses for office space, office operating
expenses, advertising and marketing and expenditures for legal and other consultants. Furthermore, the line item contains deposit
insurance contributions. Restructuring provision expenses may also be presented in other administrative expenses.
DEPRECIATION AND AMORTISATION
This line item comprises depreciation of property and equipment, depreciation of investment property and amortisation of
intangible assets. In the line item ‘Depreciation and amortisation’, also the depreciation of right-of-use assets according to IFRS 16
is disclosed.
General administrative expenses

in EUR million | 1-12 24 | 1-12 25
Personnel expenses | -3,202 | -3,335
Wages and salaries | -2,474 | -2,558
Compulsory social security | -575 | -608
Long-term employee provisions | -14 | -6
Other personnel expenses | -139 | -163
Other administrative expenses | -1,529 | -1,688
Deposit insurance contribution | -72 | -53
IT expenses | -622 | -717
Expenses for office space | -199 | -206
Office operating expenses | -163 | -167
Advertising/marketing/events | -237 | -254
Legal and consulting costs | -158 | -205
Sundry administrative expenses | -78 | -86
Depreciation and amortisation | -547 | -560
Software and other intangible assets | -179 | -175
Owner occupied real estate | -162 | -164
Investment properties | -33 | -36
Customer relationships | -4 | -7
Office furniture and equipment and sundry property and equipment | -169 | -178
General administrative expenses | -5,279 | -5,583

Personnel expenses include expenses of EUR 59 million (2024: EUR 56 million) for defined contribution plans.
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Average number of employees during the financial period (weighted according to the level of
employment)

| 1-12 24 | 1-12 25
Austria | 16,614 | 16,902
Erste Group Bank AG, Erste Bank Oesterreich and subsidiaries | 9,256 | 9,364
Cross-guarantee system companies | 7,358 | 7,539
Outside Austria | 29,031 | 29,005
Česká spořitelna Group | 9,653 | 9,597
Banca Comercială Română Group | 5,227 | 5,115
Slovenská sporiteľňa Group | 3,501 | 3,540
Erste Bank Hungary Group | 3,360 | 3,416
Erste Bank Croatia Group | 3,283 | 3,188
Erste Bank Serbia Group | 1,282 | 1,277
Savings banks subsidiaries | 1,546 | 1,567
Other subsidiaries and foreign branch offices | 1,179 | 1,307
Total | 45,645 | 45,908

For better comparability, prior-year figures have been adjusted to align with the current presentation format. The line item ‘Savings
banks’ has been replaced by ‘Cross-guarantee system companies’, resulting in a reallocation from the line ‘Erste Group, EB
Oesterreich and subsidiaries’ to ‘Cross-guarantee system companies’ of 100,84 FTE as of 31.12.2025 (2024: 22,03 FTE).
9. Gains/losses from derecognition of financial assets measured at amortised cost
This line item includes selling and other derecognition gains or losses on financial assets measured at amortised cost. However, if
such gains/losses relate to derecognition of financial assets in Stage 3, they are included in the line item ‘Impairment result from
financial instruments’.

in EUR million | 1-12 24 | 1-12 25
Gains from derecognition of financial assets at AC | 0 | 26
Losses from derecognition of financial assets at AC | -90 | -76
Gains/losses from derecognition of financial assets measured at amortised cost | -90 | -49

In order to optimise the portfolio of debt securities measured at amortised cost, certain bonds were sold during 2024 and 2025
within existing internal retrospective thresholds for the ‘held to collect’ business model assessment. The objective was to sell low
yielding bonds thereby improving the interest income in the consecutive years . Additionally, the gains reported in 2025 relate to
sales of bonds carried out to manage Erste Group’s capital position in relation to the acquisition of Santander Bank Polska.
10. Other gains/losses from derecognition of financial instruments not measured at
fair value through profit or loss
This line item includes selling and other derecognition gains or losses on financial assets at FVOCI, financial liabilities measured at
amortised cost and other financial instruments not measured at FVPL, such as finance lease receivables or financial guarantees.
However, if such gains/losses relate to financial assets in Stage 3 they are included in the line item ‘Impairment result from
financial instruments’.

in EUR million | 1-12 24 | 1-12 25
Sale of financial assets at FVOCI | -8 | 10
Sale of financial lease receivables | 2 | 0
Derecognition of financial liabilities at AC | 6 | -1
Derecognition of the separate line item in portfolio fair value hedges of interest rate risk | 0 | 0
Other gains/losses from derecognition of financial instruments not measured at fair value through profit or loss | -1 | 9

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11. Impairment result from financial instruments
Net impairment losses on financial instruments comprise impairment losses and reversals of impairment on all kinds of financial
instruments, to which the IFRS 9 expected credit loss impairment model applies. The impairment result also includes recoveries on
written-off financial assets. Modification gains and losses recognised on financial assets in Stage 2 and Stage 3 and POCI assets are
also included in this line item. Moreover, gains/losses from derecognition of financial assets in Stage 3 and POCI assets are
presented as part of the impairment result.

in EUR million | 1-12 24 | 1-12 25
Financial assets at FVOCI | 1 | 7
Financial assets at AC | -347 | -491
allocation/reversal to credit loss allowances (net) | -395 | -556
Direct write-offs | -6 | -4
Recoveries recorded directly to the income statement | 69 | 77
Modification gains or losses | -16 | -8
Finance lease receivables | 2 | -2
allocation/reversal to credit loss allowances (net) | 1 | -1
Direct write-offs | -1 | -2
Recoveries recorded directly to the income statement | 2 | 1
Credit loss allowances for loan commitments and financial guarantees given | -54 | 8
Impairment result from financial instruments | -397 | -478

In the following table, the change of the credit loss allowance recognised in balance sheet is compared to the impairment result
from financial instruments.
Changes of credit loss allowances

in EUR million | Impairment result of financial instruments | Other changes through profit or loss | Changes not affecting profit or loss | Total
Credit loss allowances Jan 25 |  |  |  | -4,628
Net allocation to credit loss allowances | -529 |  |  | -529
Increase due to passage of time (unwinding correction) |  | -120 |  | -120
Derecognition due to sales |  |  | 143 | 143
Write-offs |  |  | 683 | 683
Changes in scope of consolidation |  |  | 0 | 0
Foreign exchange differences |  | -27 |  | -27
Other |  | 20 |  | 20
Credit loss allowances Dec 25 |  |  |  | -4,458
Impairment gains or losses on POCIs without CLA | -13 |  |  |
Direct write-offs | -5 |  |  |
Recoveries recorded directly to the income statement | 78 |  |  |
Modification gains or losses | -8 |  |  |
Impairment result from financial instruments | -478 |  |  |

in EUR million | Impairment result of financial instruments | Other changes through profit or loss | Changes not affecting profit or loss | Total
Credit loss allowances Jan 24 |  |  |  | -4,530
Net allocation to credit loss allowances | -456 |  |  | -456
Increase due to passage of time (unwinding correction) |  | -124 |  | -124
Derecognition due to sales |  |  | 52 | 52
Write-offs |  |  | 399 | 399
Changes in scope of consolidation |  |  | 0 | 0
Foreign exchange differences |  | 29 |  | 29
Other |  | 2 |  | 2
Credit loss allowances Dec 24 |  |  |  | -4,628
Impairment gains or losses on POCIs without CLA | 9 |  |  |
Direct write-offs | -7 |  |  |
Recoveries recorded directly to the income statement | 72 |  |  |
Modification gains or losses | -16 |  |  |
Impairment result from financial instruments | -397 |  |  |

184
12. Other operating result
The other operating result reflects all other income and expenses not directly attributable to Erste Group’s ordinary activities.
It includes expenses for allocations to and income from release of provisions in scope of IAS 37. Further, impairment losses or any
reversal of impairment losses as well as results on the sale of property and equipment, investment property and intangible assets
are presented as other operating result. Any impairment losses on goodwill are also included in this line item.
In addition, the other operating result encompasses the following: resolution fund contributions, expenses for other taxes as well as
selling gains and losses on equity investments accounted for using the equity method and gains or losses from derecognition of
subsidiaries.
Furthermore, levies on banking activities are considered as part of the other operating result. For further details on levies on
banking activities we refer to the Management report, chapter Other operating result. Erste Group recognises a liability or a
provision for the levy when the activity that triggers payment, as identified by the relevant legislation, occurs.

in EUR million | 1-12 24 | 1-12 25
Other operating expenses | -337 | -517
Allocation to other provisions | -51 | -108
Levies on banking activities | -245 | -372
Banking tax | -153 | -244
Financial transaction tax | -91 | -128
Other taxes | -14 | -22
Resolution fund contributions | -28 | -15
Impairment of goodwill | 0 | 0
Other operating income | 74 | 155
Release of other provisions | 74 | 155
Result from properties and equipment, investment properties and other intangible assets | 16 | 22
Result from other operating expenses/income | -167 | 182
Other operating result | -414 | -158

Operating expenses (including repair and maintenance) for investment properties held for rental income totalled to EUR 33 million
(2024: EUR 29 million).
In 2024, t he result from other operating expenses/income includes an allocation in the amount of EUR 102 million to a provision
relating to the interbank exemption pursuant to Art 6 sec 1 subsec 28 (2nd sentence) Austrian VAT Act. More details can be found
in Note 53 Provisions.
I mpairment loss on assets held for sale has been recognized in the amount of EUR 4 million (2024: EUR 0 million).
13. Taxes on income
Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period. However, they are
recognised in other comprehensive income or directly in equity if they arise from a transaction or event which itself is recognised in
OCI or equity.
Coupon payments made to the holders of Additional Tier 1 equity instruments issued by Erste Group Bank AG are tax-deductible
interest payments under the Austrian Tax Regulations. Since the AT1 coupons are considered as distributions of profit the income
tax effects are recognised in profit or loss.
PILLAR 2
Erste Group is subject to the requirements of the EU‑wide minimum taxation system Pillar 2 and must reflect this in its group-wide
processes. At 31 December 2025 Erste Group applied the temporary exception according to IAS 12.88A under which a company
discloses limited information about deferred tax assets and liabilities related to the proposed OECD/G20 BEPS Pillar 2 model rules.
Under the legislation, the group is liable to pay a top-up tax for the difference between the Global Anti-Base Erosion Rules (GloBE)
effective tax rate for each jurisdiction and the 15% minimum rate. The group has effective tax rates that exceed 15% in all relevant
jurisdictions in which it operates (Austria, Czech Republic, Germany, Hongkong, Croatia, Luxemburg, Montenegro, Malta, Poland,
185
Romania, Slovenia, Slovakia and US) except for the jurisdictions Hungary, Serbia, North Macedonia and Bosnia-Herzegovina
where some of its subsidiaries operate. However, although the average effective tax rate is below 15%, the group’s exposure to
paying Pillar 2 income taxes might not be for the full difference in tax rates in relation to these jurisdictions. This is due to the
impact of specific adjustments envisaged in the Pillar 2 legislation which give rise to different effective tax rates compared to those
calculated in accordance with IAS 12. Top-up tax for Hungary and North Macedonia was provisioned locally, as these jurisdictions
have also introduced Pillar 2 legislation. As their legislation did not include any Pillar 2 rules 2024, Serbia and Bosnia-Herzegovina
were provisioned in Austri a.
MATERIAL ACCOUNTING JUDGEMENTS, ASSUMPTIONS AND ESTIMATES
Judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level
of future taxable profits, together with future tax planning strategies. For this purpose a planning period of 5 years is used.
CURRENT AND DEFERRED TAXES
Taxes on income are made up of current taxes on income calculated in each of the Group companies based on the results reported
for tax purposes, corrections to taxes on income for previous years and the change in deferred taxes.

in EUR million | 1-12 24 | 1-12 25
Current tax expense/income | -848 | -1,004
current period | -875 | -993
prior period | 27 | -11
Deferred tax expense/income | -205 | -99
current period | -212 | -103
prior period | 8 | 4
Total | -1,053 | -1,103

The following table reconciles the income taxes reported in the income statement to the pre-tax result from continuing operations
multiplied by the nominal Austrian tax rate.

in EUR million | 1-12 24 | 1-12 25
Pre-tax result from continuing operations | 4,997 | 5,400
Income tax expense for the financial year at the Austrian statutory tax rate (23%) | -1,149 | -1,242
Impact of different foreign tax rates | 178 | 188
Impact of tax-exempt earnings of investments and other tax-exempt income | 240 | 285
Tax increases due to non-deductible expenses, additional business tax and similar elements | -199 | -213
Impact on deferred taxes from topics on Group level | -67 | -71
Current period's recognition through P&L of DTA from tax losses, assessed non-recoverable at the end of the prior period | 3 | 39
Current period's recognition through P&L of DTA from temporary differences, assessed non-recoverable at the end of the prior period | 29 | 0
Impact of current non-recoverable fiscal losses and temporary differences for the year | -1 | -1
Tax expense attributable to Windfall Tax | -103 | -67
Tax expense attributable to Pillar 2 Model Top-Up Tax | -12 | -11
Tax expense/income not attributable to the reporting period | 35 | -7
Tax expense/income from changes of the tax rate or the imposition of new taxes | 11 | 0
Tax expense/income attributable to other effects | -18 | -4
Total | -1,053 | -1,103

The windfall tax relates to the special levy for banks reintroduced in Slovakia from December 31, 2023, which amounts to 25% of
the pre-tax profits in 2025. This percentage will be reduced by 5 percentage points each year and will amount to 15% from 2027.
The current tax expense related to total Pillar 2 income taxes amounts to EUR 11 million.
The following table shows the income tax effects relating to each component of other comprehensive income:
186

| 1-12 24 | 1-12 25
in EUR million | Pre-tax amount | Income tax | Net-of-tax amount | Pre-tax amount | Income tax | Net-of-tax amount
Fair value reserve of equity instruments | 7 | -2 | 6 | 4 | -1 | 3
Fair value reserve of debt instruments | 45 | -15 | 31 | 33 | -10 | 24
Own credit risk reserve | -59 | 19 | -40 | -12 | 3 | -9
Cash flow hedge reserve | 29 | -5 | 24 | -7 | 1 | -5
Remeasurement of defined benefit plans | 19 | -4 | 16 | 41 | -9 | 31
Currency reserve | -197 | 0 | -197 | 261 | 0 | 261
Other comprehensive income | -155 | -5 | -161 | 321 | -16 | 305

Taxes on income within other comprehensive income are influenced by the consideration of the result of recoverability
assessments allocated against OCI-related deferred tax assets. The allocation of the result of recoverability assessments is based on
Erste Group’s methodology of allocating non-recoverable deferred tax assets per P&L and OCI. This approach proportionately
reflects how the underlying temporary differences arose from IFRS-based adjustments of the accounting values of the related items.
Besides, the income tax related to the fair value reserve and the cash flow hedge reserve is influenced by differences of tax rates
applicable on contrary changes within the fair value reserve.
Major components of deferred tax assets and deferred tax liabilities

| Tax assets | Tax liabilities | Net variance 2025
in EUR million | Dec 25 | Jan 25 | Dec 25 | Jan 25 | Total | Profit or loss | Other comprehen- sive income
Temporary differences related to the following items: |  |  |  |  |  |  |
Financial assets and liabilities HfT and non-trading financial assets and liabilities at FVPL | 136 | 129 | -224 | -239 | 23 | 20 | 3
Financial assets at FVOCI | 5 | 8 | -37 | -7 | -32 | -21 | -11
Financial assets at AC and finance lease receivables | 310 | 356 | -13 | -7 | -53 | -54 | 0
Hedge accounting derivatives | 57 | 48 | -33 | -32 | 8 | 7 | 1
Property, plant and equipment | 26 | 27 | -93 | -74 | -20 | -20 | 0
Equity Investments in subsidiaries, associates and joint-ventures | 31 | 32 | 0 | -4 | 2 | 2 | 0
Financial liabilities at AC | 15 | 11 | -175 | -154 | -17 | -17 | 0
Long-term employee provisions (tax valuation different) | 65 | 93 | -2 | -4 | -26 | -16 | -9
Other provisions (tax valuation different) | 28 | 40 | -11 | -6 | -17 | -17 | 0
Customer relationships, brands and other intangibles | 2 | 2 | -64 | -69 | 4 | 6 | 0
Other | 136 | 134 | -44 | -53 | 11 | 10 | 0
Non-recoverable tax position from temporary differences | 0 | 0 | 0 | 0 | 0 | 0 | 0
Deferred tax position from accumulated tax loss carried forward after recoverability considerations | 3 | 2 | 0 | 0 | 1 | 1 | 0
Effect of netting according IAS 12.71 | -645 | -617 | 645 | 617 | 0 | 0 | 0
Total deferred taxes | 171 | 266 | -52 | -31 | -115 | -98 | -16
Current taxes | 84 | 45 | -323 | -241 |  | -1,004 | 0
Total taxes | 255 | 311 | -374 | -272 |  | -1,102 | -16

187

| Tax assets | Tax liabilities | Net variance 2024
in EUR million | Dec 24 | Jan 24 | Dec 24 | Jan 24 | Total | Profit or loss | Other comprehen- sive income
Temporary differences related to the following items: |  |  |  |  |  |  |
Financial assets and liabilities HfT and non-trading financial assets and liabilities at FVPL | 129 | 214 | -239 | -292 | -31 | -50 | 19
Financial assets at FVOCI | 8 | 20 | -7 | -16 | -4 | 13 | -16
Financial assets at AC and finance lease receivables | 356 | 504 | -7 | -41 | -113 | -112 | 0
Hedge accounting derivatives | 48 | 56 | -32 | -31 | -9 | -5 | -4
Property, plant and equipment | 27 | 26 | -74 | -118 | 45 | 45 | 0
Equity Investments in subsidiaries, associates and joint-ventures | 32 | 49 | -4 | -1 | -19 | -19 | 0
Financial liabilities at AC | 11 | 92 | -154 | -298 | 64 | 64 | 0
Long-term employee provisions (tax valuation different) | 93 | 105 | -4 | -5 | -11 | -7 | -4
Other provisions (tax valuation different) | 40 | 44 | -6 | -5 | -5 | -5 | 0
Customer relationships, brands and other intangibles | 2 | 3 | -69 | -72 | 3 | 9 | 0
Other | 134 | 155 | -53 | -48 | -26 | -25 | 0
Non-recoverable tax position from temporary differences | 0 | -52 | 0 | 0 | 52 | 52 | 0
Deferred tax position from accumulated tax loss carried forward after recoverability considerations | 2 | 167 | 0 | 0 | -166 | -165 | 0
Effect of netting according IAS 12.71 | -617 | -914 | 617 | 915 | 0 | 0 | 0
Total deferred taxes | 266 | 468 | -31 | -14 | -219 | -205 | -6
Current taxes | 45 | 72 | -241 | -265 |  | -848 | 0
Total taxes | 311 | 540 | -272 | -279 |  | -1,053 | -6

The deferred tax assets and liabilities are presented prior to subsidiary-level balance-sheet netting of attributable gross deferred tax
assets and gross deferred tax liabilities. The amounts shown in the table are gross amounts before recoverability assessments except
for the position deferred tax assets resulting from tax loss carry-forward. Any remaining non-recoverable amounts are considered in
line ‘Non-recoverable tax position from temporary differences’ in the table. The position ‘Other’ comprises all deferred tax positions
not being shown as separate positions in the table above.
Out of th e decrease of the total net deferred tax asset of EUR 115 million (2024: decrease EUR 219 million) an amount of
EUR 98 million (2024: expense EUR 205 million) is reflected as deferred ta x expense in the Group’s income statement for the year
2025, whils t an expense amount of EUR 16 million (2024 : expense EUR 6 million) represents the impact in the Group’s other
comprehensive expense for the year. Furthermore, deferred ta x expense in the amount of EUR 0 million ( 2024: expense EUR 1
million) representing accumulated OCI in respect of deferred tax recognised for cumulative changes in own credit risk attributable
to own issues repurchased during the year has been transferred into retained earnings, consequent to the related temporary
differences reversing upon repurchase.
The Group’s consolidated deferred tax asset position in amount o f EUR 171 million a s of 31 December 2025 (2024:
EUR 266 million) is expected to be recoverable in the foreseeable future. This is also expected to be the case for deferred tax assets
exceeding their deferred tax liabilities by an amoun t of EUR 13 million as of 3 1 December 2025 (2024: EUR 4 million) incurred by
subsidiaries reporting losses in the current or prior period. These expectations result from year-end recoverability assessments
undertaken by the Group’s entities, either at individual level, or at relevant tax group level. Such assessments are comparing net
temporary deductible differences and available fiscal losses at year-end - after offsetting with deferred tax liabilities at individual
level or at relevant tax group level - with fiscal profit forecasts for a group-wide unified and unchanged time horizon of a maximum
5 years depending on the fiscal jurisdiction and applicable facts and circumstances. If the result of these assessments is negative,
the deferred tax asset positions are correspondingly not recorded and the already existing deferred tax asset positions are
correspondingly depreciated.
In accordance with IAS 12.39, no deferred tax liabilities were recognised for temporary differences relating to investments in
subsidiaries with an amount o f EUR 3,615 million (2024: EUR 3,665 million), as they are not expected to reverse in the foreseeable
future. As of 31 December 2025, no deferred tax assets were recognised for tax loss carry-forward and deductible temporary
differences with a total amount of EUR 2,414 million (2024: EUR 2,881 million), of which EUR 71 million (2024: EUR 333 million)
relates to tax loss carry-forward, as they are not expected to be realized in the foreseeable future. The figure comprises an amount of
EUR 2,343 million (2024: EUR 2,548 million) representing temporary differences in connection with investments in subsidiaries no
deferred tax assets have been recognised for in accordance with IAS 12.44.
From the total of the not recorded deferred tax assets related to tax loss carry-forward in the following period EUR 0 million will
expire (2024: EUR 0 million) and in later periods EUR 1 million ( 2024: EUR 1 million), EUR 16 million (2024: EUR 76 million) will
not expire.
188
14. Appropriation of profit
In the reporting period, Erste Group Bank AG posted a post-tax profit of EUR 2,708 million (2024 : EUR 2,406 million) under the
Austrian accounting regulations, which increased its distributable capital accordingly.
The Management Board of Erste Group Bank AG will propose a 2025 dividend of EUR 0.75 (2024: EUR 3.00 per share) per share to
the 2025 Annual General Meeting.
189
Financial instruments – Material accounting policies
Accounting and measurement methods for financial instruments
A financial instrument is any contract giving rise to a financial asset of one party and a financial liability or equity instrument of
another party. In accordance with IFRS 9, all financial assets and liabilities – which also include derivative financial instruments –
have to be recognised on the balance sheet and measured in accordance with their assigned categories.
Regular way (spot) purchases and sales of financial assets are recognised at the settlement date, which is the date that an asset is
delivered.
Measurement of financial assets and financial liabilities is subject to two primary measurement methods: at amortised cost and fair
value.
i. Amortised cost and effective interest rate
Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal
repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial
amount and the maturity amount. For financial assets the amount is adjusted for any loss allowance.
The effective interest rate (‘EIR’) is the rate that exactly discounts estimated future cash payments or receipts through the expected
life of the financial asset or financial liability to the gross carrying amount of the financial asset (i.e. its amortised cost before
adjusting for any loss allowance) or to the amortised cost of the financial liability. The estimated cash flows consider all the
contractual terms of the financial instrument but disregard the expected credit losses. The calculation includes transaction costs,
origination fees that are an integral part of the EIR and all other premiums and discounts to the par amount.
ii. Fair Value
Details on valuation techniques applied for fair value measurement and on the fair value hierarchy are disclosed in Note 26 Fair
value of financial instruments .
Classification and subsequent measurement of financial assets
In accordance with IFRS 9, the classification and subsequent measurement of financial assets depend on the following two criteria:
_ The business model for managing the financial assets; and
_ The cash flow characteristics of the financial assets.
For further details refer to part ‘Material accounting judgements, assumptions and estimates ’ in this chapter.
Application of these criteria leads to classification of financial assets into three measurement categories described in the respective
note.
_ Financial assets at amortised cost (AC)
_ Financial assets at fair value through other comprehensive income (FVOCI)
_ Financial assets at fair value through profit or loss (FVPL)
Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at amortised cost unless they are measured at fair value through profit or loss.
Interest expense is calculated by applying the EIR to the amortised cost of a financial liability. Further details on financial liabilities
at amortised cost and financial liabilities at FVPL are in the respective notes: Note 18 Financial liabilities at amortised costs and Note
25 Financial liabilities at fair value through profit or loss.
Impairment of financial instruments
Erste Group recognises loss allowances for impairment on its debt instrument financial assets, other than those measured at FVPL,
its lease receivables and its off-balance credit risk exposures arising from financial guarantees and certain loan commitments.
The amount of the impairment loss is recognised as a loss allowance. For the purpose of the measurement of the amount of
expected credit loss and recognition of interest income, Erste Group distinguishes between three stages of impairment.
Stage 1 relates to financial instruments for which no significant increase in credit risk has been recorded since their initial
recognition or which are subject to the ‘low credit risk exemption’ allowed by IFRS 9. The impairment is measured in the amount
equal to the portion of lifetime expected credit losses that result from default events possible within the next 12 months. Interest
income is recognised by EIR applied to the gross carrying amount of the financial asset.
190
Financial instruments in Stage 2 are subject to significant increase in credit risk since their initial recognition (and the ‘low credit
risk exemption’ does not apply). Stage 2 also includes trade receivables without significant financing component to which the
‘simplified approach’ is applied mandatorily based on IFRS 9 requirements. The impairment is measured in the amount of the
lifetime expected credit loss. Interest income is recognised by EIR applied to the gross carrying amount of the financial asset (as for
Stage 1). In the case of drawings by non-defaulted customers on previously committed credit lines, the whole exposure (on-balance
and off-balance) is categorised as either Stage 1 or Stage 2, depending on the development of credit risk between the commitment
date and the drawing date.
Financial instruments in Stage 3 are credit-impaired. In respect of applying the ‘credit-impaired’ concept of IFRS 9, Erste Group
adopted the approach of aligning it with the regulatory concept of ‘default’ in accordance with guidelines of the European Banking
Authority EBA/GL/2016/07 and Commission Delegated Regulation (EU) 2018/171. Erste Group generally applies a customer view
for the default definition, which leads to Stage 3 classification of all transactions with the customer even if the customer defaults
only on one of several transactions (‘pulling effect’). On the other hand, an upgrade to a non-defaulted rating grade implies that all
the transactions with the customer cease to be impaired. The impairment of financial instruments in Stage 3 is measured in the
amount of the lifetime expected credit loss. Interest income is calculated by EIR applied to the amortised cost (i.e. the net carrying
amount) of the financial asset. From a balance sheet perspective, interest is accrued based on the financial assets’ gross carrying
amount. The difference between the interest accrued on the assets and the interest income recognised is reflected through the
allowance account (without impacting the impairment loss).
For financial assets that are credit-impaired at initial recognition (purchased or originated credit-impaired financial assets ‘POCI’)
lifetime expected credit losses are initially reflected in the credit-adjusted EIR. As a result, no loss allowance is recognised at
inception. Subsequently, only adverse changes in lifetime expected credit losses after the initial recognition are recognised as loss
allowance, whilst favourable changes are recognised as impairment gains increasing the gross carrying amount of the POCI
financial assets. No impairment stages are distinguished for the POCI financial assets.
Measurement of expected credit losses includes cash flows expected from collateral and those financial guarantees held by Erste
Group which are considered as integral to the contractual terms of financial assets whose risk is guaranteed. Erste Group considers
as integral those guarantees which are entered into at or close to the inception of the guaranteed financial assets. If the bank has in
a loan contract an option to require provision of a guarantee, it is also considered as integral. Premiums paid for integral financial
guarantees and other credit enhancements are considered in the EIR of the related financial assets.
Reimbursement assets from financial guarantees which are not considered integral are recognised under ‘Other assets’ in the
balance sheet. In the statement of income they reduce the impairment loss incurred on guaranteed financial assets under
‘Impairment result from financial instruments’. A precondition for this treatment is that it must be virtually certain that the
guarantee would reimburse the bank for the loss. Premiums paid for non-integral financial guarantees are presented in the
statement of income under the line item ‘Fee and commission expense’ under ‘Net fee and commission income’. Typical example of
non-integral guarantees in the business of Erste Group are synthetic securitisations of loan portfolios. Synthetic securitisations are
undertaken with the aim of reducing risk-weighted assets for regulatory own funds requirement purposes. More details on
synthetic securitisations are provided in Note 36 Use of collateral and other credit enhancements.
More detailed information about identification of significant increases in credit risk including collective assessment and estimation
techniques used to measure 12-month and lifetime expected credit losses is provided in Note 34 Credit risk. For further information
on the definition of default refer to Note 37 Measurement of expected credit loss.
For financial assets measured at amortised cost, the net carrying amount of the financial asset presented on the balance sheet is the
difference between the gross carrying amount and the cumulative loss allowance. However, for financial assets measured at
FVOCI, the loss allowance is recognised in the accumulated OCI, specifically under ‘Fair value reserve’ in the statement of changes
in equity. Loss allowances for loan commitments and financial guarantees are presented under the balance sheet line item
‘Provisions’.
Information about the development of the expected credit loss of the respective financial instruments is provided in Note 37
Measurement of expected credit loss.
In the statement of income, impairment losses and their reversals (gains) on all kinds of financial instruments are presented in the
line item ‘Impairment result from financial instruments’.
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Derecognition of financial instruments including treatment of contractual modifications
i. Derecognition of financial assets
The difference between the carrying amount of the derecognised asset and the consideration received is presented in the statement
of income in the line ‘Gains/losses from derecognition of financial assets measured at amortised cost’ or, for financial assets at
FVOCI, in the line ‘Other gains/losses from derecognition of financial instruments not measured at fair value through profit or
loss’. For financial assets measured at FVPL the derecognition gains or losses are recognised together with the measurement result
in the lines ‘Net trading result’ or ‘Gains/losses from financial instruments measured at fair value through profit or loss’.
ii. Derecognition criteria with respect to contractual modifications of financial assets
In the normal course of running its lending business and in agreement with the respective debtors, Erste Group may renegotiate or
otherwise modify some terms or conditions of the underlying contracts. This can involve either market-driven commercial
renegotiations or contractual changes aimed at alleviating or preventing borrower’s financial difficulty. For the purpose of
capturing the economic substance and financial effect of such contractual modifications, Erste Group has developed a set of criteria
to assess whether or not the modified terms are substantially different from the original terms and thus the financial asset has to be
derecognised.
Commercial interest rate adjustments fulfilling specific conditions do not trigger the modification significance assessment. Instead,
they result in a recalculation of the EIR of related loans. Such interest rate adjustments relate to performing non-forborne financial
assets for which a prepayment/early termination option and a sufficiently competitive refinancing market exist. Furthermore, the
costs that the debtor would incur in case of prepayment/early termination would have to be assessed as low. Such conditions
introduce an implicit floating rate element to the contract. This kind of interest rate adjustments rarely applies to loan assets in
Stage 2.
Substantial modifications lead to derecognition of the original financial asset and initial recognition of the modified financial asset
as a new financial instrument. They include following events:
_ change of the contractual counterparty (unless this is a formal change such as changes in legal name);
_ change in the currency of the contract (unless the change results from exercising an embedded option in the original contract
with pre-agreed conditions of the change, or if the new currency is pegged to the original currency);
_ introduction of a non-SPPI contractual feature (unless it is intended to improve recoveries from debtors by granting concessions
supporting them to recover from financial difficulties); or
_ removal of a non-SPPI contractual feature.
Some derecognition criteria distinguish whether contractual modifications are applied to debtors facing financial difficulties.
Application of certain modifications to debtors in financial difficulties is not considered as substantial since they are aimed at
improving the prospects of the bank to recover the claims by tailoring the repayment schedules to specific financial conditions of
those debtors. On the other hand, such contractual modifications applied to performing debtors may be considered as substantial
enough to warrant the derecognition, as further detailed below.
From this perspective, the following criteria lead to derecognition unless they are considered as forbearance measures or they are
applied to customers in default or they trigger default (i.e. the derecognition occurs if the modification does not relate to financial
difficulties):
_ repayment schedule changed in a way that the weighted remaining maturity of the assets is modified by more than 100% and at
least two years compared to the original asset;
_ change in timing/amount of contractual cash flows resulting in the present value of the modified cash flows (discounted at pre-
modification effective interest rate) being different by more than 10% of the gross carrying amount of the asset immediately
before the modification (cumulative assessment considering all modifications occurring over the last twelve months); or
_ altering a floating interest rate into a fixed interest rate or vice versa for the entire remaining life of the financial asset.
If contractual modifications that qualify as forbearance measures or they are applied to customers in default or they trigger default
(i.e. they relate to customers in financial difficulties) are so significant that they are qualitatively assessed as an extinguishment of
original contractual rights, they result in derecognition. Examples of such modifications are:
_ a new agreement with materially different terms signed up as part of distressed restructuring following a standstill agreement
suspending the rights of the original assets;
_ consolidation of multiple original loans into one with substantially different terms; or
_ transformation of a revolving loan into non-revolving.
Contractual modifications leading to derecognition of the related original assets result in the initial recognition of new financial
assets. If the debtor is in default or the significant modification leads to the default, then the new asset will be treated as POCI. The
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difference between the carrying amount of the derecognised asset and initial fair value of the new POCI asset is presented in the
statement of income in the line ‘Impairment result from financial instruments’.
If the debtor is not in default or the significant modification does not lead to default, the new asset recognised after derecognition of
the original asset will be in Stage 1. For loans measured at amortised cost, the unamortised balance of the origination fees/
transaction costs considered in the effective interest rate is presented in the line item ‘Interest income’ under ‘Net interest income’
at the derecognition date. The release of the credit loss allowance attached to the original asset at the date of that significant
modification as well as the credit loss allowance recognised for the new asset are presented in the line ‘Impairment result from
financial instruments’. The remaining difference is presented in the line ‘Gains/losses from derecognition of financial assets
measured at amortised cost’.
For debt instrument assets not measured at FVPL that are subject to contractual modifications that do not result in derecognition,
the gross carrying amount of the asset is adjusted against recognising a modification gain or loss in profit or loss. The modification
gain or loss equals the difference between the gross carrying amount before the modification and the present value of the cash
flows based on the modified terms discounted with the original EIR. In the statement of income, the modification gain or loss is
presented in the line ‘Interest income’ under ‘Net interest income’ if the modification relates to financial assets in Stage 1. For
financial assets in Stage 2 and 3 and POCI financial assets, the modification gain or loss is presented in the line ‘Impairment result
from financial instruments’. However, to the extent that the contractual modification involves the bank giving up its rights of
collecting cash flows in respect of an outstanding amount of the asset, such as waiving (part of) principal or accrued interest
amount, it is treated as a write-off.
iii. Write-offs
Erste Group writes off a financial asset or a part of it when it has no reasonable expectations of recovering the respective cash flows.
When performing the write-off, the gross carrying amount of the asset is reduced simultaneously with the related loss allowance
balance.
Erste Group has specified criteria for writing off the unrecoverable balances in its loan business. Write-off can result from
forbearance measures whereby the bank contractually waives part of the existing balance in order to help the customers overcome
financial difficulties and thus improve the prospects of recovering the remaining loan balance (normally this relates to going
concern scenarios for corporate customers). For more information on Forbearance please refer to Note 41 Restructuring,
renegotiation and forbearance.
In gone concern scenarios with corporate customers, write-offs of the unrecoverable exposure parts are triggered by enforcement
activities such as filing or termination of legal proceedings (bankruptcy, liquidation, court case). Other write-off triggers may result
from decisions about no enforcement due to worthlessness of the claim/collateral or generally from assessment that the receivable
is economically lost. For retail customers, the non-recoverability and the timing and amounts of write-off crystallise during the
collection process when it becomes evident that the amount due cannot be collected, e.g. due to ongoing bankruptcy proceedings.
Residual uncollectable balances are written off after the collection process.
iv. Derecognition of financial liabilities
In the statement of income, the difference between the carrying amount of the derecognised financial liability and the
consideration paid is presented in the line ‘Other gains/losses from financial instruments not measured at fair value through profit
or loss’, ‘Gains/losses from financial instruments measured at fair value through profit or loss’ and ‘Net trading result’ depending
on the measurement category of the derecognised financial liability.
MATERIAL ACCOUNTING JUDGEMENTS, ASSUMPTIONS AND ESTIMATES
i. SPPI assessment
The assessment of whether the contractual cash flows of financial assets give rise to cash flows that are solely payments of principal
and interest (SPPI) is subject to the application of significant judgements which rely on the guidance in IFRS 9. These judgements
are crucial in the IFRS 9 classification and measurement process, as they determine whether the asset must be measured at FVPL
or, depending on the business model assessment, at amortised cost or at FVOCI. When taking into consideration specific features of
financial assets in the business of Erste Group, significant areas of judgement are prepayment fees, project financing loans and
interest rate adjustments based on the fulfilment of certain ESG-related targets.
The assessment whether the prepayment fees applied to loans can be considered as a reasonable compensation for early
terminations or prepayments is based on comparing the level of the fees with the economic costs incurred by the bank upon the
early termination. For these purposes, Erste Group uses a quantitative test where the costs relate to the lost interest margin and the
lost interest differential due to a potential decrease in the interest rates upon early termination or prepayment. The adequacy of the
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fees can also be defended on a qualitative basis, such as common market practice regarding the level of prepayment fees and their
acceptance by authorities.
For project financing loans Erste Group assesses whether they represent basic loan agreements rather than investments in the
financed projects. In this respect, credit rating, level of collateralisation, existing sponsor guarantees and the extent of equity
funding of the financed projects are considered.
In the last years financial assets whose interest is adjusted based on meeting certain ESG-linked targets by the borrowers (e.g.
meeting specified CO 2 emission targets) became part of Erste Group’s business. Erste Group has concluded that ESG-related
interest adjustments have a de minimis effect on the contractual cash flows. As a result, they do not affect the SPPI assessment.
ii. Business model assessment
For each SPPI-compliant financial asset at initial recognition, Erste Group must assess whether it is part of a business model where
the assets are held in order to collect contractual cash flows, to both collect the contractual cash flows and sell the assets, or they are
held in other business models. As a consequence, the critical aspect in distinguishing the business models is frequency and
significance of sales of assets in the respective business model. Since asset allocation to business models is based on the initial
assessment, it may happen that in subsequent periods cash flows are realised differently than originally expected and a different
measurement method may seem to be appropriate. In accordance with IFRS 9, such subsequent changes do not generally lead to
reclassifications or prior period error corrections in respect of existing financial assets. The new information on how cash flows are
realised may, however, indicate that the business model and thus the measurement method changes for newly acquired or newly
originated financial assets.
At Erste Group, certain sales or other derecognition events are considered as not contradicting the held to collect contractual cash
flows business model. Examples are sales due to increases in credit risk, sales close to assets’ maturity, infrequent sales triggered by
a non-recurring event (such as changes in regulatory or tax environment, major internal reorganisation or a business combination,
severe liquidity crisis, etc.) or derecognitions resulting from replacements of bonds based on an issuer’s offer. Other kinds of sales
carried out in the ‘held to collect’ business model are assessed retrospectively and if they exceed certain quantitative thresholds, or
whenever it is considered necessary with regard to new expectations, Erste Group performs a prospective test. If the outcome was
that the carrying amount of assets expected to be sold over the expected life of the current business model portfolio, for reasons
other than the cases above, exceeds 10% of the carrying amount of the portfolio, any new acquisitions or originations of assets
would be classified in a different business model.
iii. Impairment of financial instruments
The expected credit loss impairment model is inherently based on judgement since it requires assessment of significant increases in
credit risk and measurement of expected credit losses without providing detailed guidance. In respect of significant increases in
credit risk, Erste Group has determined specific assessment rules consisting of qualitative information and quantitative thresholds.
Another area of complexity relates to establishing groups of similar assets when credit risk deterioration has to be assessed on a
collective basis before specific information is available at individual instrument level. Measurement of expected credit losses
involves complex models relying on historical statistics of probabilities of default and loss rates in case of defaults, their
extrapolations in case of insufficient observations, individual estimates of credit-adjusted cash flows and probabilities of various
scenarios including forward-looking information. In addition, the life of the instruments has to be modelled in respect of
behavioural life of revolving credit facilities.
Detailed disclosures about identification of significant increases in credit risk including collective assessment and estimation
techniques used to measure 12-month and lifetime expected credit losses are provided in Note 34 Credit risk. For further
information on the definition of default refer to Note 37 Measurement of expected credit loss. The development of loan loss provisions
is described in Note 39 Development of credit loss allowances.
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Financial instruments held at amortised cost
Financial assets are classified as measured at amortised cost if they are held in a business model whose objective is to collect
contractual cash flows and their contractual cash flows are SPPI.
On the balance sheet, these assets are carried at amortised cost, i.e. the gross carrying amount net of the credit loss allowance. They
are presented under the line ‘Financial assets at amortised cost’, ‘Trade and other receivables’ and ‘Cash and cash balances’.
Interest income on these assets is calculated by effective interest method and is included under the line ‘Interest income’ under ‘Net
interest income’ in the statement of income. Impairment gains or losses are included in the line ‘Impairment result from financial
instruments’. Gains and losses from derecognition (such as sales) of the assets are reported under the line item ‘Gains/losses from
derecognition of financial assets measured at amortised cost’.
At Erste Group, financial assets at amortised cost constitute the largest measurement category, which includes the vast majority of
loan business to customers (except for certain loans measured at fair value through profit or loss), interbank lending business
(including reverse repo transactions), deposits with central banks, investments in debt securities, amounts in the course of
settlement, trade and other receivables.
For description of financial liabilities at measured amortised cost refer to Note 18 Financial liabilities at amortised costs.
15. Cash and cash balances
Cash balances include only claims (deposits) against central banks and credit institutions that are repayable on demand. Repayable
on demand means that they may be withdrawn at any time or with a term of notice of only one business day or 24 hours. A part of
‘Cash balances at central banks’ represents the mandatory minimum reserve requirement deposits which amounted to
EUR 6,566 million (2024: EUR 4,673 million) at the reporting date. The mandatory minimum reserve requirement is calculated
from defined balance sheet items and has to be fulfilled in average through an extended period of time. Therefore, the mandatory
minimum reserve requirement deposits are not subject to restraints.

in EUR million | Dec 24 | Dec 25
Cash on hand | 3,122 | 3,376
Cash balances at central banks | 20,813 | 22,636
Other demand deposits at credit institutions | 1,194 | 1,561
Cash and cash balances | 25,129 | 27,573

16. Financial assets at amortised cost
DEBT SECURITIES
Investments in debt securities measured at amortised cost may be acquired with different business objectives (such as fulfilling
internal/external liquidity risk requirements and efficient placement of the structural liquidity surplus, strategic positions decided
by the board of directors, initiation and fostering of client relationships, substitution of loan business or other yield generating
activities). Their common attribute is that significant and frequent sales of such securities are not expected. For a description of
what sales are considered as compliant with the held to collect contractual cash flows business model, see paragraph ‘Business
model assessment’ in chapter ‘Financial instruments - Material accounting policies’.
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Gross carrying amounts and credit loss allowances per impairment buckets

| Gross carrying amount | Credit loss allowances |
in EUR million | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Carrying amount
Dec 25 |  |  |  |  |  |  |  |  |
Central banks | 26 | 0 | 0 | 26 | 0 | 0 | 0 | 0 | 26
General governments | 49,024 | 8 | 0 | 49,032 | -5 | 0 | 0 | -5 | 49,027
Credit institutions | 7,875 | 5 | 0 | 7,881 | -3 | 0 | 0 | -3 | 7,878
Other financial corporations | 634 | 21 | 0 | 655 | 0 | 0 | 0 | -1 | 654
Non-financial corporations | 1,005 | 61 | 9 | 1,075 | -1 | -1 | -4 | -6 | 1,069
Total | 58,565 | 95 | 9 | 58,669 | -8 | -2 | -4 | -14 | 58,655
Dec 24 |  |  |  |  |  |  |  |  |
Central banks | 22 | 0 | 0 | 22 | 0 | 0 | 0 | 0 | 22
General governments | 42,278 | 73 | 0 | 42,350 | -5 | 0 | 0 | -5 | 42,346
Credit institutions | 8,870 | 1 | 0 | 8,871 | -3 | 0 | 0 | -3 | 8,867
Other financial corporations | 652 | 25 | 0 | 678 | 0 | -1 | 0 | -1 | 677
Non-financial corporations | 926 | 47 | 9 | 982 | -1 | -1 | -4 | -6 | 977
Total | 52,748 | 146 | 9 | 52,904 | -9 | -2 | -4 | -15 | 52,889

For information about the development of credit loss allowances refer to Note 39 Development of credit loss allowances.
LOANS AND ADVANCES TO BANKS
Gross carrying amounts and credit loss allowances per impairment buckets

| Gross carrying amount | Credit loss allowances |
in EUR million | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Carrying amount
Dec 24 |  |  |  |  |  |  |  |  |
Central banks | 13,667 | 0 | 0 | 13,667 | 0 | 0 | 0 | 0 | 13,667
Credit institutions | 7,163 | 0 | 0 | 7,163 | -3 | 0 | 0 | -3 | 7,159
Total | 20,830 | 0 | 0 | 20,830 | -3 | 0 | 0 | -3 | 20,827
Dec 23 |  |  |  |  |  |  |  |  |
Central banks | 17,620 | 0 | 0 | 17,620 | 0 | 0 | 0 | 0 | 17,620
Credit institutions | 9,352 | 6 | 0 | 9,358 | -6 | 0 | 0 | -6 | 9,352
Total | 26,972 | 6 | 0 | 26,978 | -6 | 0 | 0 | -6 | 26,972

For information about the development of credit loss allowances refer to Note 39 Development of credit loss allowances.
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LOANS AND ADVANCES TO CUSTOMERS
Gross carrying amounts and credit loss allowances per impairment buckets

| Gross carrying amount | Credit loss allowances |
in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Carrying amount
Dec 25 |  |  |  |  |  |  |  |  |  |  |
General governments | 9,636 | 359 | 32 | 2 | 10,030 | -4 | -12 | -1 | -1 | -19 | 10,011
Other financial corporations | 6,167 | 417 | 56 | 0 | 6,640 | -11 | -15 | -30 | 0 | -56 | 6,583
Non-financial corporations | 80,030 | 16,503 | 3,308 | 228 | 100,069 | -231 | -645 | -1,296 | -39 | -2,211 | 97,858
Households | 97,530 | 9,700 | 2,022 | 106 | 109,359 | -155 | -441 | -977 | -14 | -1,586 | 107,773
Total | 193,363 | 26,979 | 5,418 | 337 | 226,097 | -401 | -1,113 | -2,304 | -54 | -3,872 | 222,225
Dec 24 |  |  |  |  |  |  |  |  |  |  |
General governments | 8,689 | 600 | 62 | 16 | 9,367 | -5 | -16 | -4 | 0 | -25 | 9,342
Other financial corporations | 5,745 | 744 | 64 | 0 | 6,553 | -12 | -17 | -28 | 0 | -57 | 6,496
Non-financial corporations | 71,722 | 20,079 | 3,190 | 239 | 95,229 | -204 | -770 | -1,247 | -54 | -2,276 | 92,953
Households | 88,288 | 11,443 | 2,030 | 115 | 101,876 | -145 | -460 | -1,009 | -19 | -1,633 | 100,243
Total | 174,443 | 32,866 | 5,346 | 369 | 213,024 | -366 | -1,263 | -2,289 | -73 | -3,991 | 209,034

For information about the development of credit loss allowances refer to Note 39 Development of credit loss allowances.
17. Trade and other receivables
Trade receivables arise largely from the factoring business of Erste Group.
Gross carrying amounts and credit loss allowances per impairment buckets

| Gross carrying amount | Credit loss allowances |
in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Carrying amount
Dec 25 |  |  |  |  |  |  |  |  |  |  |
General governments | 80 | 22 | 0 | 0 | 102 | 0 | 0 | 0 | 0 | 0 | 101
Credit institutions | 34 | 3 | 0 | 0 | 37 | 0 | 0 | 0 | 0 | 0 | 37
Other financial corporations | 143 | 18 | 0 | 0 | 161 | 0 | 0 | 0 | 0 | -1 | 160
Non-financial corporations | 1,681 | 857 | 36 | 1 | 2,576 | -10 | -2 | -15 | -1 | -28 | 2,547
Households | 60 | 43 | 15 | 0 | 118 | 0 | -5 | -13 | 0 | -18 | 100
Total | 1,999 | 942 | 51 | 2 | 2,993 | -11 | -7 | -28 | -1 | -47 | 2,946
Dec 24 |  |  |  |  |  |  |  |  |  |  |
General governments | 61 | 19 | 0 | 0 | 80 | 0 | 0 | 0 | 0 | 0 | 80
Credit institutions | 60 | 2 | 0 | 0 | 62 | 0 | 0 | 0 | 0 | 0 | 62
Other financial corporations | 105 | 18 | 0 | 0 | 123 | 0 | 0 | 0 | 0 | -1 | 122
Non-financial corporations | 1,504 | 803 | 19 | 1 | 2,327 | -9 | -3 | -12 | -1 | -25 | 2,302
Households | 81 | 34 | 15 | 0 | 129 | 0 | -5 | -13 | 0 | -18 | 111
Total | 1,811 | 876 | 34 | 1 | 2,722 | -10 | -8 | -26 | -1 | -44 | 2,677

For information about development of credit loss allowances refer to Note 39 Development of credit loss allowances.
18. Financial liabilities at amortised costs
The line item ‘Financial liabilities at amortised cost’ is further broken down into ‘Deposits from banks’, ‘Deposits from customers’,
‘Debt securities issued’ and ‘Other financial liabilities’.
Interest expenses incurred are calculated using effective interest method are reported in the line item ‘Interest expenses’ under ‘Net
interest income’ in the statement of income. Gains and losses from derecognition (mainly repurchase) are reported under the line
item ‘Other gains/losses from derecognition of financial instruments not measured at fair value through profit or loss’.
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Deposits from banks

in EUR million | Dec 24 | Dec 25
Deposits repayable on demand | 2,853 | 2,565
Term deposits | 10,720 | 10,923
Repurchase agreements | 7,688 | 3,431
Deposits from banks | 21,261 | 16,919

Deposits from customers

in EUR million | Dec 24 | Dec 25
Deposits repayable on demand | 170,533 | 184,773
Savings deposits | 56,356 | 62,108
Other financial corporations | 196 | 172
Non-financial corporations | 3,689 | 3,885
Households | 52,472 | 58,051
Non-savings deposits | 114,177 | 122,665
General governments | 9,234 | 9,405
Other financial corporations | 5,307 | 5,689
Non-financial corporations | 32,386 | 35,970
Households | 67,250 | 71,602
Term deposits | 67,341 | 62,365
Deposits with agreed maturity | 66,073 | 60,534
Savings deposits | 27,018 | 25,719
Other financial corporations | 120 | 33
Non-financial corporations | 1,277 | 757
Households | 25,622 | 24,929
Non-savings deposits | 39,055 | 34,815
General governments | 3,955 | 2,726
Other financial corporations | 8,507 | 6,089
Non-financial corporations | 11,407 | 11,975
Households | 15,186 | 14,025
Deposits redeemable at notice | 1,268 | 1,831
General governments | 0 | 10
Other financial corporations | 0 | 6
Non-financial corporations | 1 | 324
Households | 1,267 | 1,489
Repurchase agreements | 3,661 | 5,679
General governments | 1,418 | 2,124
Other financial corporations | 2,244 | 3,503
Non-financial corporations | 0 | 52
Deposits from customers | 241,535 | 252,817
General governments | 14,607 | 14,265
Other financial corporations | 16,373 | 15,492
Non-financial corporations | 48,759 | 52,963
Households | 161,797 | 170,096

Debt securities issued

in EUR million | Dec 24 | Dec 25
Subordinated debt securities issued | 3,410 | 3,746
Senior non-preferred bonds | 5,066 | 6,263
Other debt securities issued | 33,383 | 35,594
Bonds | 12,300 | 13,702
Certificates of deposit | 5,713 | 4,191
Other certificates of deposits/name certificates | 94 | 94
Mortgage covered bonds | 15,277 | 17,608
Debt securities issued | 41,859 | 45,604

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SUBORDINATED LIABILITIES
Subordinated liabilities are reported either in the item ‘Financial liabilities at amortised costs’ or ‘Financial liabilities at fair value
through profit or loss’. Securitized and non-securitized liabilities are subordinated if the claims can only be satisfied after the claims
of other, non-subordinated creditors in the event of liquidation or bankruptcy.
Material subordinated liabilities

Issuer | ISIN | Currency | Nominal value | Initial fixed rate | Reset rate after the first call date | Due | Call Redemption Date
Erste Group Bank AG | AT0000A2J645 | EUR | 500 million | 1.625% | 5Y swap +2.100% | 08.09.2031 | 01.04.2026
Erste Group Bank AG | AT0000A2YA29 | EUR | 500 million | 4.000% | 5Y swap +2.550% | 07.06.2033 | 25.01.2028
Erste Group Bank AG | AT0000A3FY07 | EUR | 750 million | 4.000% | 5Y swap +1.200% | 15.01.2035 | 04.12.2029
Erste Group Bank AG | AT0000A3NRE3 | EUR | 750 million | 3.625% | 5Y swap +1.300% | 26.11.2035 | 21.11.2030

In the reporting period, expenses for subordinated liabilities of all measurement categories amounted to EUR 185 million (2024:
EUR 170 million).
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Financial assets at fair value through other
comprehensive income
19. Financial assets at fair value through other comprehensive income – debt
instruments
Debt instrument financial assets are measured at fair value through other comprehensive income (FVOCI) if their contractual cash
flows are SPPI-compliant and they are held within a business model whose objective is achieved by both to collect contractual cash
flows and sell the assets. On the balance sheet, they are included as ‘Debt securities’ under the line ‘Financial asset at fair value
through other comprehensive income’.
Interest income on these assets is calculated using the effective interest method and is included in the line ‘Interest income’ under
‘Net interest income’ in the statement of income. Impairment gains and losses are recognised in profit or loss in the line
‘Impairment result from financial instruments’ with opposite loss allowance entry in OCI rather than against the asset value. As a
result, the measurement impact recognised in profit or loss is the same as for financial assets measured at amortised cost.
The difference between the fair value at which the assets are carried in the balance sheet and the amortised cost component is
recognised as accumulated OCI in equity specifically under ‘Fair value reserve’ in the statement of changes in equity. The change
for the period is reported as OCI in the statement of comprehensive income in the line ‘Fair value reserve of debt instruments’
which also includes the loss allowance OCI entry. When the financial asset is derecognised, the amount previously accumulated in
OCI is reclassified to profit or loss and reported under the line ‘Other gains/losses from derecognition of financial instruments not
measured at fair value through profit or loss’.
Erste Group classifies investments in debt securities as measured at FVOCI, i.e. no loan business is included in this measurement
category. Similarly to investments in debt securities measured at amortised cost, they relate to various business objectives such as
fulfilling internal/external liquidity risk requirements and efficient placement of the structural liquidity surplus, strategic positions
decided by the board of directors, initiation and fostering of client relationships, substitution of loan business or other yield-
enhancement activities. The common attribute for investments in debt instruments at FVOCI is that an active yield optimisation
via sales is integral to achieving the objectives. The sales are carried out in order to optimise the liquidity position or to realise fair
value gains or losses. As a result, the business objectives are achieved through both collecting contractual cash flows and sales of
the securities.
Gross carrying amounts and credit loss allowances per impairment buckets

| Gross carrying amount | Credit loss allowances |  |  |
in EUR million | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Amortised cost | Accumulated OCI changes | Fair value
Dec 25 |  |  |  |  |  |  |  |  |  |  |
General governments | 7,461 | 0 | 0 | 7,461 | -2 | 0 | 0 | -2 | 7,460 | 31 | 7,490
Credit institutions | 792 | 0 | 0 | 792 | 0 | 0 | 0 | 0 | 792 | 12 | 803
Other financial corporations | 130 | 1 | 0 | 131 | 0 | 0 | 0 | 0 | 131 | -1 | 130
Non-financial corporations | 588 | 60 | 5 | 652 | -1 | 0 | -2 | -3 | 649 | -5 | 644
Total | 8,971 | 60 | 5 | 9,036 | -3 | 0 | -2 | -5 | 9,031 | 37 | 9,068
Dec 24 |  |  |  |  |  |  |  |  |  |  |
General governments | 6,951 | 0 | 0 | 6,951 | -2 | 0 | 0 | -2 | 6,949 | -6 | 6,943
Credit institutions | 1,449 | 0 | 0 | 1,449 | -1 | 0 | 0 | -1 | 1,448 | 17 | 1,465
Other financial corporations | 133 | 40 | 0 | 174 | 0 | -1 | 0 | -1 | 173 | -1 | 172
Non-financial corporations | 658 | 162 | 4 | 824 | 0 | -8 | 0 | -9 | 815 | -7 | 809
Total | 9,191 | 202 | 5 | 9,398 | -3 | -9 | 0 | -13 | 9,385 | 3 | 9,388

For information about the development of credit loss allowances refer to Note 39 Development of credit loss allowances.
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20. Financial assets at fair value through other comprehensive income – equity
instruments
For certain investments in equity instruments that are not held for trading, Erste Group makes use of the option to measure them
at FVOCI. This election is applied to strategic, significant banking business relationship investments (except for insurance
business). The fair value gains or losses for the period are reported as OCI in the line ‘Fair value reserve of equity instruments’ of
the statement of comprehensive income. The cumulative gains or losses are included under ‘Fair value reserve’ in the statement of
changes in equity. The amount recognised in OCI is never reclassified to profit or loss. However, upon derecognition of the
investments in equity instruments at FVOCI the amount accumulated in OCI is transferred to retained earnings. Dividends
received on these investments are reported under the line ‘Dividend income’ of the statement of income. On the balance sheet,
financial assets measured at fair value through OCI are included as ‘Equity instruments’ under the line ‘Financial asset at fair value
through other comprehensive income’.
The carrying am ount of Erste Group’s equity instruments at FVOCI as at 31 December 2025 amounts to EUR 113 million (2024:
EUR 109 million), the cumulative fair value change for equity instruments FVOCI before taxes recognised in other comprehensive
income amounted to EUR 73 million (2024 : EUR 69 million). During the year 2024 and 2025, no equity instruments FVOCI were
sold due to strategic business decisions. The cumulative loss (net of tax) that was transferred from accumulated other
comprehensive income into retained earnings amounted to EUR 0 million (2024: EUR 3 million).
201
Financial instruments at fair value through profit or loss
There are various reasons for assigning the fair value through profit or loss (FVPL) measurement category to debt instrument
financial assets.
FVPL measurement relates to that are part of residual business models, i.e. they are neither held to collect contractual cash flows
nor held to either collect contractual cash flows or sell the assets. These financial assets are generally expected to be sold before
their maturity or they are managed and their performance is evaluated on a fair value basis. In the business of Erste Group, such
business models are typical of assets that are held for trading (i.e. financial assets held by the trading function of the bank), of assets
whose value is expected to be primarily realised through sales, such as loan syndications when the loan is offered for sale on the
market. Further subject to FVPL measurement are financial assets held by funds consolidated by Erste Group since they are
managed and their performance is evaluated on a fair value basis.
Another reason for the FVPL measurement are financial assets whose contractual cash flows are not considered as SPPI. At Erste
Group, this concerns certain debt securities and loans to customers.
Erste Group also makes use of the option to designate some financial assets as measured at FVPL at initial recognition. Such a
classification is used if it eliminates or significantly reduces an accounting mismatch between fixed interest rate financial assets,
which in the absence of such a classification would be measured at amortised cost or at FVOCI and related derivatives measured at
FVPL.
On the balance sheet, debt instrument financial assets measured at FVPL are presented as ‘Financial assets held for trading’, sub-
item ‘Other financial assets held for trading’ and ‘Non-trading financial assets at fair value through profit or loss’, sub-items ‘Debt
securities’ and ‘Loans and advances to customers’. Non-trading financial assets at FVPL consist of two sub-categories disclosed in
N ote 23 Non-trading financial assets at fair value through profit or loss which are ‘mandatorily at fair value through profit or loss’
and ‘designated at fair value through profit or loss’. Financial assets are mandatorily measured at fair value through profit or loss
either because they are held as part of residual business models that are other than held for trading or their contractual cash flows
are not SPPI.
Investments in equity instruments that are held for trading (i.e. financial assets held by the trading function of the bank) are
measured at FVPL. They are included in the balance sheet under the line ‘Financial assets held for trading’, sub-item ‘Other
financial assets held for trading’. Investments in equity instruments that are not held for trading are also measured at FVPL (unless
they are designated at FVOCI). They are presented in the balance sheet under ‘Non-trading financial assets at fair value through
profit or loss’, sub-item ‘Equity instruments’, sub-category ‘mandatorily at fair value through profit or loss’ in Note 23 Non-trading
financial assets at fair value through profit or loss.
From IFRS 9 perspective all derivatives which are not designated as hedging instruments are considered as held for trading. As a
result, they are measured at FVPL. They are described in more detail in Note 21 Derivative financial instruments.
In the statement of income, the profit or loss effects of non-derivative financial assets measured at FVPL are split into interest
income or dividend income and fair value gains and losses. The interest income on debt instruments is presented in the line ‘Other
similar income’ under ‘Net interest income’ and is calculated by applying the EIR to the amortised cost component of the financial
assets. The dividend income on equity instruments is presented in the line ‘Dividend income’. The fair value gains or losses are
calculated net of the interest or dividend income and they also include transaction costs and origination fees. They are reported in
the line ‘Net trading result’ for financial assets held for trading and in the line ‘Gains/losses from financial instruments measured at
fair value through profit or loss’ in case of non-trading financial assets at FVPL. For investments in funds, which are not
consolidated by Erste Group, the interest or dividend component is not separated from the fair value gains or losses.
Financial liabilities at FVPL consist of financial liabilities held for trading and financial liabilities designated at FVPL.
On the balance sheet, financial liabilities at FVPL are presented as ‘Financial liabilities held for trading’, sub-items ‘Derivatives’ and
‘Other financial liabilities held for trading’ and as ‘Financial liabilities at fair value through profit or loss’ which are further broken
down into ‘Deposits from customers’, ‘Debt securities issued’ and ‘Other financial liabilities’. Accounting Policy related to financial
liabilities at FVPL can be found in Note 21 Derivative financial instrument, Note 24 Other financial liabilities held for trading and
Note 25 Financial liabilities at fair value through profit or loss.
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21. Derivative financial instruments
Derivative financial instruments are used by Erste Group to manage exposures to interest rates, foreign currencies and other
market price risks. Derivatives used by Erste Group include mainly interest rate swaps, futures, forward rate agreements, interest
rate options, currency swaps and currency options as well as credit default swaps.
For presentation purposes, derivatives are split into:
_ Derivatives – held for trading; and
_ Derivatives – hedge accounting.
Hedge accounting derivatives are discussed in Note 27 Hedge accounting.
Derivative financial instruments are carried at fair value (dirty price) on the balance sheet. Derivatives are carried as assets if their
fair value is positive and as liabilities if their fair value is negative.
Derivatives – held for trading are those that are not designated as hedging instruments for hedge accounting. They are presented in
the line item ‘Derivatives’ under the heading ‘Financial assets/Financial liabilities held for trading’. All kinds of non-hedging
derivatives without regard to their internal classification, i.e. both derivatives held in the trading book and banking book, are
presented in this line item.
Changes in the fair value (clean price) of derivatives – held for trading are reported in the statement of income in the line item ‘Net
trading result’. Interest income/expense related to held for trading derivatives is presented in the statement of income in the line
item ‘Other similar income’ or ‘Other similar expenses’ under ‘Net interest income’. Interest income/expense recognition is based
on EIR-like accruals in respect of the derivative notional amount and includes amortisation of the inception value of the derivative
(e.g. upfront fees, if any).
Embedded derivatives
Erste Group issues certain financial liabilities which contain structured features. Structured features mean that a derivative is
embedded in non-derivative host instruments.
Embedded derivatives that are separated are accounted for as stand-alone derivatives and presented on the balance sheet under the
line item ‘Derivatives’ in financial assets held for trading and financial liabilities held for trading. At Erste Group, these relate to
bonds and deposits whose payments are linked to equity prices or FX rates.
In the business of Erste Group, the majority of non-closely related embedded derivatives relates to bonds issued for which fair value
option has been applied. As a result, these embedded derivatives are part of the measurement of the entire hybrid instrument at
FVPL and thus are not separated.
Derivatives held for trading

| Dec 24 | Dec 25
in EUR million | Notional value | Positive fair value | Negative fair value | Notional value | Positive fair value | Negative fair value
Derivatives held in the trading book | 235,383 | 3,892 | 3,704 | 260,413 | 3,390 | 3,481
Interest rate | 180,233 | 3,303 | 3,249 | 204,278 | 3,010 | 2,955
Equity | 380 | 5 | 5 | 346 | 7 | 15
Foreign exchange | 54,245 | 579 | 441 | 55,310 | 368 | 507
Credit | 189 | 1 | 6 | 93 | 0 | 2
Commodity | 7 | 0 | 0 | 11 | 0 | 0
Other | 328 | 5 | 2 | 376 | 5 | 2
Derivatives held in the banking book | 30,760 | 471 | 535 | 42,150 | 367 | 406
Interest rate | 23,102 | 353 | 299 | 33,456 | 255 | 281
Equity | 965 | 72 | 52 | 750 | 73 | 23
Foreign exchange | 6,476 | 47 | 180 | 6,392 | 39 | 98
Credit | 46 | 0 | 0 | 1,366 | 0 | 0
Other | 170 | 0 | 4 | 186 | 0 | 4
Total gross amounts | 266,143 | 4,363 | 4,239 | 302,564 | 3,758 | 3,887
Offset |  | -3,137 | -3,090 |  | -2,928 | -2,795
Total |  | 1,226 | 1,149 |  | 829 | 1,092

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Erste Group undertakes a part of interest rate derivative and credit derivative transactions via Clearing Houses. These derivatives
and related cash margin balances fulfil the requirements for balance sheet offsetting. For more details on balance sheet offsetting
please refer to Note 28 Offsetting of financial instrument s .
22. Other financial assets held for trading

in EUR million | Dec 24 | Dec 25
Equity instruments | 141 | 222
Debt securities | 10,095 | 8,326
Central banks | 3,539 | 1,595
General governments | 3,941 | 4,036
Credit institutions | 2,135 | 2,300
Other financial corporations | 324 | 259
Non-financial corporations | 155 | 135
Other financial assets held for trading | 10,236 | 8,548

23. Non-trading financial assets at fair value through profit or loss

| Dec 24 | Dec 25
in EUR million | Designated | Mandatorily | Designated | Mandatorily
Equity instruments | 0 | 464 | 0 | 523
Debt securities | 44 | 1,424 | 0 | 1,786
General governments | 0 | 364 | 0 | 484
Credit institutions | 44 | 144 | 0 | 356
Other financial corporations | 0 | 847 | 0 | 813
Non-financial corporations | 0 | 69 | 0 | 133
Loans and advances to customers | 0 | 1,108 | 0 | 1,524
General governments | 0 | 0 | 0 | 0
Non-financial corporations | 0 | 26 | 0 | 8
Households | 0 | 1,081 | 0 | 1,515
Financial assets designated and mandatorily at FVPL | 44 | 2,996 | 0 | 3,833
Non-trading financial assets at fair value through profit or loss | 3,040 | 3,833

Erste Group has designated debt securities at FVPL. The maximum exposure to credit risk on these securities is its fair value. In
2024 and 2025 there were no material changes in fair value due to changes in credit risk.
24. Other financial liabilities held for trading
Non-derivative held for trading liabilities largely comprise short sales. These arise from obligations to return securities, which are
purchased under agreements to resell or are borrowed through securities lending transactions and subsequently sold to third
parties. On the balance sheet such liabilities are presented under the line ‘Financial liabilities held for trading’, sub-item ‘Other
financial liabilities’. The gains or losses on financial liabilities held for trading are reported in the line ‘Net trading result’ in the
statement of income.

in EUR million | Dec 24 | Dec 25
Short positions | 603 | 1,226
Equity instruments | 61 | 40
Debt securities | 543 | 1,187
Debt securities issued | 69 | 94
Other financial liabilities held for trading | 672 | 1,321

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25. Financial liabilities at fair value through profit or loss
Erste Group makes use of the option to designate some financial liabilities as measured at FVPL at initial recognition (referred to as
fair value option) if:
_ such classification eliminates or significantly reduces an accounting mismatch between fixed interest rate financial liabilities
otherwise measured at amortised cost and related derivatives measured at FVPL. Erste Group assesses quantitatively that the
designation actually eliminates or significantly reduces the accounting mismatch in respect of fair value changes attributable to
interest rate risk; or
_ the entire hybrid contract contains a non-closely related embedded derivative.
Financial liabilities designated at FVPL are reported on the balance sheet under the line item ‘Financial liabilities at fair value
through profit or loss’ and are further broken down into ‘Deposits from customers’, ‘Debt securities issued’ and ‘Other financial
liabilities’. Other financial liabilities relate to fund units issued by funds consolidated by Erste Group. Interest incurred is calculated
by applying the EIR to the amortised cost of the financial liability and is reported in the statement of income under in line item
‘Other similar expenses’ under ‘Net interest income’. Gains and losses resulting from changes in fair value are recognised net of the
interest expense under the line item ‘Gains/losses from financial instruments measured at fair value through profit or loss’.
The amount of the fair value change resulting from the credit risk of the financial liability for the period is presented as OCI in the
statement of comprehensive income in the line ‘Own credit risk reserve’. The cumulative amount is recognised as accumulated
OCI, specifically under ‘Own credit risk reserve’ in the statement of changes in equity. The amount recognised in OCI is never
reclassified to profit or loss. However, upon derecognition (mainly repurchases) of the financial liabilities designated at FVPL the
amount accumulated in OCI is transferred to retained earnings.
The cumulative amount of the credit risk recognised as accumulated OCI is calculated as the difference between the present value
of the liability determined by using the original credit spread and the fair value of the liability. The amount of fair value change
attributable to changes in credit risk of the liability for the period which is recognised in OCI is the difference between the
cumulative amount of the credit risk at the end of the period and at the beginning of the period. When calculating the present value
of the liability by using the original credit spread, the rate used for discounting is the sum of the observed interest rate (swap yield
curve) and the original credit spread. The original credit spread is determined at initial recognition of the liability and it equals the
difference between the total yield of the liability and the observed interest rate (swap yield curve) at that time.
Delta between carrying amount and amount repayable for financial liabilities at FVPL

| Carrying amount | Amount repayable | Delta between carrying amount and amount repayable
in EUR million | Dec 24 | Dec 25 | Dec 24 | Dec 25 | Dec 24 | Dec 25
Deposits | 115 | 174 | 116 | 176 | 0 | -2
Debt securities issued | 10,030 | 9,268 | 10,248 | 9,687 | -218 | -419
Other financial liabilities | 136 | 415 | 136 | 415 | 0 | 0
Financial liabilities at FVPL | 10,281 | 9,857 | 10,500 | 10,278 | -219 | -421

Fair value changes that are attributable to changes in own credit risk

| For reporting period | Cumulative amount
in EUR million | 1-12 24 | 1-12 25 | Dec 24 | Dec 25
Deposits | 3 | 1 | 3 | 4
Debt securities issued | 57 | 11 | 136 | 145
Financial liabilities at FVPL | 60 | 12 | 139 | 149

The line ‘Other financial liabilities’ contains fund units issued by investment funds fully consolidated by Erste Group. Their fair
value changes are subject to asset-specific performance risk only and are not dependent on changes in the individual own credit
risk of the respective investment funds.
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Debt securities issued

in EUR million | Dec 24 | Dec 25
Subordinated debt securities issued | 1,985 | 1,768
Other debt securities issued | 8,045 | 7,500
Bonds | 5,557 | 5,083
Other certificates of deposits/name certificates | 1,143 | 1,091
Mortgage covered bonds | 1,269 | 1,249
Public sector covered bonds | 74 | 77
Debt securities issued | 10,030 | 9,268

In the reporting period, a loss of EUR 2 million (2024 EUR 0 million) was transferred from own credit risk reserve to retained
earnings due to the repurchase of debt securities (own issues) issued.
206
Financial instruments – other disclosure matters
26. Fair value of financial instruments
The measurement of fair value at Erste Group is based primarily on external sources of data (stock market prices or broker quotes
in highly liquid market segments). Financial instruments for which the fair value is determined on the basis of quoted market
prices are mainly listed securities and listed derivatives as well as liquid OTC bonds.
Where the fair values of financial assets and financial liabilities recorded on the balance sheet cannot be derived from active
markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The inputs to
these models are derived from observable market data where possible, but where observable market data is not available judgement
is required to establish fair values. Using of unobservable inputs is particularly relevant for models used for valuations of loans and
unquoted equity investments. Disclosures on valuation models, the fair value hierarchy and fair values of financial instruments can
be found subsequently.
For all financial instruments the fair value is measured on recurring basis.
Financial instruments carried at fair value
DESCRIPTION OF VALUATION MODELS AND PARAMETERS
Erste Group uses valuation models that have been tested internally and for which the valuation parameters (such as interest rates,
exchange rates, volatilities and credit spreads) have been determined independently.
Loans. Not SPPI compliant loans are to be valued at fair value. The methodology to compute fair value of these loans corresponds
to the basic present value technique. The credit risk is recognized by adjusting contractual cash flows to come to expected cash
flows accounting for customer’s probability of default (‘PD’) and loss given default (‘LGD’). These adjusted cash flows are then
discounted by a yield curve which consists of a risk-free rate and a funding spread for senior unsecured issues.
Debt securities. For plain vanilla (fixed and floating rate) debt securities the fair value is calculated by discounting the future cash
flows using a discounting curve depending on the interest rate for the respective issuance currency and a spread adjustment. The
spread adjustment is usually derived from the credit spread curve of the issuer. If no issuer curve is available the spread is derived
from a proxy instrument and adjusted for differences in the risk profile of the instruments. If no close proxy is available, the spread
adjustment is estimated using other information, including estimation of the credit spread based on internal ratings and PDs or
management judgment. For more complex debt securities (e.g. including option-like features such as callable, cap/floor, index-
linked) the fair value is determined using combinations of discounted cash flow models and more sophisticated modeling
techniques including methods described for OTC-derivatives.
Equity instruments. For non-trading equity instruments which do not have quoted market prices in an active market the fair
value is determined by standard valuation models using also unobservable input parameters. These models include the adjusted net
asset value method, the simplified income approach, the dividend discount model and the comparable company multiple method.
The adjusted net asset method requires an investor to measure the fair value of the individual assets and liabilities recognized in an
investee’s statement of financial position as well as the fair value of any unrecognized assets and liabilities at the measurement
date. The resulting fair values of the recognized and unrecognized assets and liabilities should therefore represent the fair value of
the investee’s equity.
The dividend discount model assumes that the price of equity instruments issued by an entity equals the present value of all its
expected future dividends in perpetuity. Similar to the dividend discount model, the simplified income approach estimates the fair
value based on the future income. However, it can be used also when only one year planned income is available. The simplified
income approach and the dividend discount model discount future income and dividends using the cost of equity. The cost of
equity is dependent on the risk-free rate, the market risk premium, the levered beta and the country risk premium. The levered beta
is derived from the industry classification which is published and maintained by Damodaran.
In rare cases, techniques for non-trading equity instruments may also include comparable company multiple methods. These are
valuation techniques that use prices and other relevant information generated by market transactions involving comparable
company peers of an investee to derive a valuation multiple from which the indicated fair value of the investee’s equity or
enterprise value can be inferred.
207
Liabilities. For issued debt securities where the fair value cannot be retrieved from quoted market prices, the fair value is
calculated by discounting the future cash flows. Significant input factors for the spread adjustment of Erste Group’s own credit risk
for the respective seniority class are credit spreads derived from liquid benchmark bonds and additional indications from external
investments banks, which are provided on a regular basis. The applied spreads are validated on a regular basis from an independent
Risk Management unit. In case of issued securities with structured features, optionality is taken into account as well when
calculating the fair value.
OTC-derivative financial instruments. Derivative instruments traded in liquid markets (e.g. interest rate swaps and options,
foreign exchange forward and options, options on listed securities and indices, credit default swaps and commodity swaps) are
valued by using standard valuation models. These models include discounting cash flow models, option models of the Black-
Scholes and Hull-White type as well as hazard rate models. Models are calibrated on quoted market data (including implied
volatilities). Valuation models for more complex instruments also use Monte-Carlo simulation. For instruments in less liquid
markets, data obtained from less frequent transactions or extrapolation techniques are used. For determining the fair value of
collateralised derivatives a discounting interest rate reflecting the interest rate of the corresponding cash collateral is used.
Erste Group values derivatives at mid-market levels. To reflect the potential bid-ask-spread of the relevant positions an adjustment
based on market liquidity is performed. The adjustment parameters depend on product type, currency, maturity, liquidity and
notional size. Parameters are reviewed on a regular basis or in case of significant market moves.
Credit value adjustments (CVA) for counterparty risk and debit value adjustments (DVA) for own default credit risk are applied to
OTC derivatives. For the CVA the adjustment is driven by the expected positive exposure of the derivative and the probability of
default of the counterparty. The DVA is driven by the expected negative exposure of the derivative and Erste Group’s probability of
default. The modeling of the expected exposure is based on option replication strategies or Monte-Carlo simulation techniques.
The accumulated CVA-adjustments amounted to EUR 9 million (2024: EUR 15 million) and the total DVA-adjustment amounted
to EUR 10 million (2024: EUR 9 million).
Based on an analysis carried out by Erste Group it was decided that for the valuation of OTC derivatives no Funding Value
Adjustment (‘FVA’) would be considered.
VALIDATION AND CONTROL
The responsibility for valuation of financial instruments measured at fair value is independent of the trading units. In addition,
Erste Group has implemented an independent validation function in order to ensure separation between units responsible for
model development, fair value measurement and validation. The aim of independent model validation is to evaluate model risks
arising from the models’ theoretical foundation, the appropriateness of input data (market data) and model calibration.
Fair value hierarchy
Financial assets and financial liabilities measured at fair value are categorized under the three levels of the IFRS fair value
hierarchy.
LEVEL 1 OF THE FAIR VALUE HIERARCHY
Level 1 measurements include exchange traded derivatives (options), shares, government bonds as well as other bonds and funds,
which are traded in highly liquid and active markets.
LEVEL 2 OF THE FAIR VALUE HIERARCHY
In case a market quote is used for valuation but due to restricted liquidity the market does not qualify as active (derived from
available market liquidity indicators) the instrument is classified as Level 2. If no market prices are available the fair value is
measured by using valuation models which are based on observable market data. For Level 2 valuations typically yield curves,
credit spreads and implied volatilities are used as observable market parameters.
Level 2 measurements include OTC derivatives, theoretically priced exchange traded derivatives, less liquid shares, bonds and
funds as well as asset backed securities (ABS), collateralized debt obligations (CDO), own issues and deposits.
208
LEVEL 3 OF THE FAIR VALUE HIERARCHY
If any unobservable input in the valuation model is significant or the price quote used is updated infrequently the instrument is
classified as Level 3 of the fair value hierarchy. Typically credit spreads derived from internally calculated historical probability of
default (PD) and loss given default (LGD) measures are used as unobservable parameters. Furthermore, internally calculated cost
of equity and adjustments made on the equity (in the adjusted net asset value method) are unobservable parameters for the
valuation of non-trading equity instruments.
The volume of Level 3 financial assets can be allocated to the following categories:
_ Derivatives where the credit value adjustment (CVA) has a material impact and is calculated based on unobservable parameters
(i.e. internal estimates of PDs and LGDs).
_ Illiquid bonds, shares, participations and funds not quoted in an active market where either valuation models with non-
observable parameters have been used (e.g. credit spreads) or broker quotes have been used that cannot be allocated to Level 1 or
Level 2.
_ Loans which do not comply with the contractual cash flow criteria.
The allocation of the appropriate level of positions is determined at the end of the reporting period.
A reclassification from Level 1 into Level 2 or Level 3 as well as vice versa will be performed if the financial instrument does no
longer meet the criteria described above for the respective level.
Classification of financial instruments carried at fair value by levels of the fair value hierarchy

| Dec 24 | Dec 25
in EUR million | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Assets |  |  |  |  |  |  |  |
Financial assets HfT | 4,414 | 6,985 | 63 | 11,463 | 4,717 | 4,603 | 57 | 9,377
Derivatives | 1 | 1,184 | 41 | 1,226 | 1 | 795 | 34 | 829
Other financial assets HfT | 4,413 | 5,802 | 22 | 10,236 | 4,717 | 3,808 | 23 | 8,548
Non-trading financial assets at FVPL | 1,348 | 129 | 1,563 | 3,040 | 1,706 | 91 | 2,036 | 3,833
Equity instruments | 63 | 6 | 396 | 464 | 67 | 14 | 441 | 523
Debt securities | 1,285 | 123 | 60 | 1,468 | 1,639 | 77 | 71 | 1,786
Loans and advances | 0 | 0 | 1,108 | 1,108 | 0 | 0 | 1,524 | 1,524
Financial assets at FVOCI | 7,543 | 1,626 | 329 | 9,498 | 6,977 | 1,906 | 298 | 9,181
Equity instruments | 0 | 0 | 109 | 109 | 1 | 0 | 113 | 113
Debt securities | 7,543 | 1,626 | 220 | 9,388 | 6,976 | 1,906 | 185 | 9,068
Hedge accounting derivatives | 0 | 181 | 0 | 181 | 0 | 231 | 0 | 231
Total assets | 13,305 | 8,921 | 1,956 | 24,181 | 13,400 | 6,832 | 2,390 | 22,622
Liabilities |  |  |  |  |  |  |  |
Financial liabilities HfT | 605 | 1,202 | 14 | 1,821 | 1,220 | 1,191 | 1 | 2,412
Derivatives | 2 | 1,133 | 14 | 1,149 | 4 | 1,087 | 1 | 1,092
Other financial liabilities HfT | 603 | 69 | 0 | 672 | 1,216 | 104 | 0 | 1,321
Financial liabilities at FVPL | 136 | 10,145 | 0 | 10,281 | 415 | 9,442 | 0 | 9,857
Deposits from customers | 0 | 115 | 0 | 115 | 0 | 174 | 0 | 174
Debt securities issued | 0 | 10,030 | 0 | 10,030 | 0 | 9,268 | 0 | 9,268
Other financial liabilities | 136 | 0 | 0 | 136 | 415 | 0 | 0 | 415
Hedge accounting derivatives | 0 | 194 | 0 | 194 | 0 | 170 | 0 | 170
Total liabilities | 741 | 11,541 | 14 | 12,296 | 1,635 | 10,804 | 1 | 12,439

Derivatives transacted via Clearing Houses are presented after netting in compliance with their balance sheet treatment. The netted
derivatives are allocated to Level 2.
VALUATION PROCESS FOR FINANCIAL INSTRUMENTS CATEGORISED AS LEVEL 3
The valuation of financial instruments categorized as Level 3 involves one or more significant inputs that are not directly
observable on the market. Additional price verification steps need to be done. These may include reviewing relevant historical data
and benchmarking for similar transactions, among others. This involves estimation and expert judgment. Further details regarding
input parameters used and the results of the sensitivity analysis are disclosed in the sub-chapter Unobservable inputs and
sensitivity analysis for Level 3 measurements below.
209
CHANGES IN VOLUMES OF LEVEL 1 AND LEVEL 2
Reclassification between Level 1 and Level 2 based on balance sheet positions and instruments

| Dec 24 | Dec 25
in EUR million | L1 to L2 | L2 to L1 | L1 to L2 | L2 to L1
Financial assets HfT | 144 | 11 | 217 | 4
Bonds | 144 | 10 | 217 | 3
Shares | 0 | 0 | 0 | 1
Non-trading financial assets at FVPL | 2 | 4 | 3 | 5
Bonds | 2 | 3 | 2 | 5
Shares | 0 | 1 | 0 | 0
Financial assets at FVOCI | 258 | 25 | 159 | 4
Bonds | 258 | 25 | 159 | 4
Total | 404 | 40 | 379 | 13

Transfers into and out of Level 1 and Level 2 are caused by changes in market activities and consequently due to the quality and
observability of valuation parameters.
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MOVEMENTS IN LEVEL 3
Development of fair value of financial instruments in Level 3

in EUR million |  | Gains/losses profit or loss | Gains/ losses OCI | Purchases | Sales | Settle- ments | Addition to group | Disposal out of group | Transfer into Level 3 | Transfer out of Level 3 | Currency translation |
| Jan 25 |  |  |  |  |  |  |  |  |  |  | Dec 25
Assets |  |  |  |  |  |  |  |  |  |  |  |
Financial assets HfT | 63 | 14 | 0 | 4 | -15 | 0 | 0 | 0 | 14 | -22 | 0 | 57
Derivatives | 41 | 14 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -22 | 0 | 34
Other financial assets HfT | 22 | 0 | 0 | 3 | -15 | 0 | 0 | 0 | 14 | 0 | 0 | 23
Non-trading financial assets at FVPL | 1,563 | 56 | 0 | 487 | -17 | -92 | 3 | 0 | 1 | -53 | 87 | 2,036
Equity instruments | 396 | 45 | 0 | 61 | -11 | 0 | 0 | 0 | 0 | -52 | 2 | 441
Debt securities | 60 | 6 | 0 | 13 | -7 | -5 | 3 | 0 | 1 | -1 | 0 | 71
Loans and advances | 1,108 | 5 | 0 | 413 | 0 | -88 | 0 | 0 | 0 | 0 | 85 | 1,524
Financial assets at FVOCI | 329 | 5 | 2 | 26 | 0 | -75 | 0 | 0 | 139 | -131 | 3 | 298
Equity instruments | 109 | 0 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 113
Debt securities | 220 | 5 | -1 | 26 | 0 | -75 | 0 | 0 | 139 | -131 | 3 | 185
Hedge accounting derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total assets | 1,956 | 75 | 2 | 516 | -33 | -168 | 3 | 0 | 154 | -206 | 90 | 2,390
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Financial liabilities HfT | 14 | -14 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1
Derivatives | 14 | -14 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1
Other trading financial liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Financial liabilities at FVPL | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Debt securities issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Other financial liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Hedge accounting derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total liabilities | 14 | -14 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1
| Jan 24 |  |  |  |  |  |  |  |  |  |  | Dec 24
Assets |  |  |  |  |  |  |  |  |  |  |  |
Financial assets HfT | 139 | 13 | 0 | 40 | -34 | 0 | 0 | 0 | 19 | -114 | 0 | 63
Derivatives | 75 | 11 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | -46 | 0 | 41
Other financial assets HfT | 64 | 2 | 0 | 40 | -34 | 0 | 0 | 0 | 18 | -68 | 0 | 22
Non-trading financial assets at FVPL | 1,444 | 60 | 0 | 254 | -15 | -69 | 0 | 0 | 2 | -33 | -80 | 1,563
Equity instruments | 333 | 34 | 0 | 57 | -2 | 0 | 0 | 0 | 0 | -25 | -2 | 395
Debt securities | 73 | 10 | 0 | 3 | -13 | -3 | 0 | 0 | 2 | -8 | -2 | 61
Loans and advances | 1,038 | 16 | 0 | 195 | 0 | -65 | 0 | 0 | 0 | 0 | -76 | 1,108
Financial assets at FVOCI | 392 | -1 | 1 | 7 | 0 | -15 | 0 | -1 | 191 | -242 | -2 | 329
Equity instruments | 109 | 0 | 7 | 0 | 0 | -13 | 0 | 4 | 1 | 0 | 0 | 109
Debt securities | 283 | -1 | -7 | 7 | 0 | -3 | 0 | -5 | 190 | -242 | -2 | 220
Hedge accounting derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total assets | 1,975 | 71 | 1 | 301 | -49 | -84 | 0 | -1 | 212 | -389 | -81 | 1,956
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Financial liabilities HfT | 10 | 14 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10 | 0 | 14
Derivatives | 10 | 14 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10 | 0 | 14
Other trading financial liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Financial liabilities at FVPL | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Debt securities issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Other financial liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Hedge accounting derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total liabilities | 10 | 14 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10 | 0 | 14

Transfers into and out of Level 3 mainly result from changes in valuation models with observable or non-observable parameters and when the non-observable parameters become significant or
insignificant.
211
Gains/losses in profit or loss on Level 3 instruments held at the end of the reporting period

in EUR million | 1-12 24 | 1-12 25
Assets |  |
Financial assets HfT | 8 | 27
Derivatives | 11 | 27
Other financial assets HfT | -2 | 0
Non-trading financial assets at FVPL | 62 | 56
Equity instruments | 37 | 46
Debt securities | 10 | 3
Loans and advances | 15 | 7
Total | 70 | 86
Liabilities |  |
Financial liabilities HfT | -14 | -1
Derivatives | -14 | -1
Total | -14 | -1

UNOBSERVABLE INPUTS AND SENSITIVITY ANALYSIS FOR LEVEL 3 MEASUREMENTS
In case the fair value measurement of a financial asset is retrieved from input parameters which are not observable in the market,
those parameters can be retrieved from a range of alternative parameters. For the preparation of the balance sheet the parameters
were chosen to reflect the market situation at the reporting date.
Range of unobservable valuation parameters used in Level 3 measurement

|  |  | Fair value in EUR million |  | Range of unobservable inputs (weighted average)
Financial assets / liabilities | Type of instrument | Valuation technique | Dec 24 | Dec 25 | Significant unobservable inputs | Dec 24 | Dec 25
Positive / negative fair value of derivatives | Forwards, swaps, options | DCF and option models with CVA adjustment based on potential future exposure | 29 | 32 | PD | 0.98%-11.21% (1.81%) | 0.97%-4.95% (2.22%)
LGD | 60% | 60%
Financial assets at FVPL | Fixed and variable coupon bonds | DCF | 24 | 22 | Credit Spread | -0.79%-9.54% (1.13%) | -1.11%-2.58% (1.97%)
Loans | DCF | 1,108 | 1,524 | PD | 0.04%-6.29% (0.19%) | 0.02%-29.18% (0.48%)
LGD | 0.06%-40.97% (23.23%) | 0.01%-61.63% (28.31%)
Financial assets at FVOCI | Fixed and variable coupon bonds | DCF | 202 | 185 | Credit Spread | 0.42%-6.05% (1.69%) | -1.18%-3.11% (1.16%)
Financial assets at FVOCI / at FVPL | Non-trading equity instruments (participations) | Dividend Discount Model; Simplified Income Approach | 240 | 281 | Beta levered | Industries: 0.57-1.15 (0.97) | 0.58-1.22 (0.90)
Country risk premium | 0.38%-2.68% (0.56%) | 0.27%-2.18% (0.48%)
Adjusted Net Asset Value | 132 | 145 | Adjusted Equity | Depending on accounting equity of investment | Depending on accounting equity of investment

The range of unobservable credit spreads for fixed and variable coupon bonds contains premiums and discounts related to riskless
as well as risky, market observable (e.g. industry- and rating-specific spread curves) parameters.
For financial assets at FVOCI/at FVPL, where Beta levered and Country risk premium inputs are being used, the resulting cost of
equity based on these inputs is in the range 6.02%-13.24% (2024: 5.91%-13.40%). The majority of financial assets at FVOCI/at FVPL,
where Beta levered inputs are being used, is related to Financial Services (Non-bank & Insurance) with 1.03 ( 2024 : Financial
Services (Non-bank & Insurance) with 1.00). The majority of financial assets at FVOCI/at FVPL, where Country risk premium
inputs are being used, is related to Austria with 0.32% (2024: Austria with 0.40%).
In addition to the information above, equity instruments with a fair value in amoun t of EUR 68 million (2024: EUR 51 million) are
assessed on the basis of expert opinions.
212
Furthermore, for equity instruments other than participations classified as Level 3, the amount o f EUR 10 million (2024:
EUR 23 million) is presented in the statement of financial position using the criteria of availability and quality of broker quotes.
Sensitivity analysis - Fair value changes per product type using reasonably possible alternatives

| Dec 24 | Dec 25
in EUR million | Positive | Negative | Positive | Negative
Derivatives | 2 | -3 | 1 | -2
Income statement | 2 | -3 | 1 | -2
Debt securities | 8 | -10 | 6 | -9
Income statement | 2 | -3 | 1 | -1
Other comprehensive income | 6 | -7 | 5 | -7
Equity instruments | 77 | -55 | 106 | -69
Income statement | 56 | -41 | 82 | -54
Other comprehensive income | 21 | -14 | 24 | -15
Loans and advances | 19 | -70 | 30 | -98
Income statement | 19 | -70 | 30 | -98
Total | 106 | -138 | 142 | -177
Income statement | 79 | -117 | 113 | -155
Other comprehensive income | 27 | -21 | 29 | -22

In estimating these impacts, mainly changes in credit spreads (for bonds), PDs, LGDs (for CVA of derivatives) and market values of
comparable equities were considered. An increase (decrease) of spreads, PDs and LGDs result in a decrease (increase) of the
corresponding fair values. Positive correlation effects between PDs and LGDs were not taken into account in the sensitivity
analysis. For non-trading equity instruments increases (decreases) in any of the inputs used for the cost of equity calculation in
isolation would result in a lower (higher) fair value.
The following ranges of reasonably possible alternatives of the unobservable inputs were considered in the sensitivity analysis table:
_ for debt securities range of credit spreads between +100 basis points and -75 basis points
_ for equity related instruments the price range between -10% and +5%
_ for unquoted equity instruments measured by the adjusted net asset value the price range between -10% and +10%
_ for unquoted equity instruments measured by dividend discount model/simplified income approach the cost of equity range
between -2% and +2%
_ for CVA on derivatives PDs rating upgrade/downgrade by one notch, as well as the change of LGD by -5% and +10%
_ for loans, the PDs rating upgrade/downgrade by 1%, the change of LGD by -5% and +10% and a range of credit spreads between
+100 basis points and 75 basis points.
213
Financial instruments not carried at fair value with fair value disclosed in the notes

in EUR million | Carrying amount | Fair value | Level 1 | Level 2 | Level 3
Dec 25 |  |  |  |  |
Assets |  |  |  |  |
Financial assets at AC | 301,707 | 296,511 | 52,936 | 3,965 | 239,609
Loans and advances to banks | 20,827 | 20,752 | 0 | 0 | 20,752
Loans and advances to customers | 222,225 | 218,669 | 0 | 0 | 218,669
Debt securities | 58,655 | 57,090 | 52,936 | 3,965 | 188
Finance lease receivables | 5,290 | 5,263 | 0 | 0 | 5,263
Trade and other receivables | 2,946 | 2,944 | 0 | 0 | 2,944
Liabilities |  |  |  |  |
Financial liabilities at AC | 316,168 | 315,755 | 25,944 | 18,632 | 271,179
Deposits from banks | 16,919 | 16,657 | 0 | 0 | 16,657
Deposits from customers | 252,817 | 252,547 | 0 | 0 | 252,547
Debt securities issued | 45,604 | 45,723 | 25,944 | 18,632 | 1,147
Other financial liabilities | 829 | 829 | 0 | 0 | 829
Financial guarantees and commitments |  |  |  |  |
Financial guarantees | n/a | 36 | 0 | 0 | 36
Loan commitments | n/a | 50 | 0 | 0 | 50
Dec 24 |  |  |  |  |
Assets |  |  |  |  |
Financial assets at AC | 288,894 | 283,770 | 47,098 | 3,635 | 233,038
Loans and advances to banks | 26,972 | 26,990 | 0 | 0 | 26,990
Loans and advances to customers | 209,034 | 205,972 | 0 | 0 | 205,972
Debt securities | 52,889 | 50,808 | 47,098 | 3,635 | 76
Finance lease receivables | 5,248 | 5,223 | 0 | 0 | 5,223
Trade and other receivables | 2,677 | 2,676 | 0 | 0 | 2,676
Liabilities |  |  |  |  |
Financial liabilities at AC | 305,332 | 304,790 | 21,910 | 16,561 | 266,319
Deposits from banks | 21,261 | 21,001 | 0 | 0 | 21,001
Deposits from customers | 241,535 | 241,308 | 0 | 0 | 241,308
Debt securities issued | 41,859 | 41,804 | 21,910 | 16,561 | 3,333
Other financial liabilities | 676 | 676 | 0 | 0 | 676
Financial guarantees and commitments |  |  |  |  |
Financial guarantees | n/a | 32 | 0 | 0 | 32
Loan commitments | n/a | 1,230 | 0 | 0 | 1,230

In the table above, positive fair values of financial guarantees and commitments are shown with a positive sign whereas negative
fair values are shown with a negative sign.
The fair value of loans and advances to customers and credit institutions has been calculated by discounting future cash flows while
taking into consideration interest and credit spread effects. The interest rate impact is based on the movements of market rates,
while credit spread changes are derived from PDs and LGDs used for internal risk calculations. Loans and advances were grouped
into homogeneous portfolios based on rating method, rating grade, maturity and the country where they were granted. The
measurement of fair values of loans to customers is not affected by whether they are subject to synthetic securitisations. As a result,
they are categorised as Level 3 measurements. Details on synthetic securitisations can be found in Note 36 Use of collateral and
other credit enhancements. The fair values of debt securities at amortised cost are either taken directly from the market or they are
determined by directly observable input parameters (i.e. yield curves).
The fair value of deposits and other liabilities, measured at amortised cost, is estimated by taking into account the current interest
rate environment, as well as the own credit spreads. For liabilities without contractual maturities (e.g. demand deposits), the
carrying amount represents the minimum of their fair value.
The fair value of issued securities and subordinated liabilities measured at amortised cost is determined based on the same
valuation models as described for Liabilities above in the section Financial instruments carried at fair value.
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Regarding off-balance sheet liabilities (i.e. financial guarantees and unused loan commitments) the fair value of unused loan
commitments is estimated using regulatory credit conversion factors. The resulting loan equivalents are treated like other on-
balance sheet assets. The difference between the calculated total fair value and the notional amount of the hypothetical loan
equivalents represents the fair value of the unused loan commitments. In case of the total fair value being higher than the notional
amount of the hypothetical loan equivalents the unused loan commitments have a positive fair value. The fair value of financial
guarantees is estimated in analogy to credit default swaps. The fair value of the guarantee is the sum of the present value of the
protection leg and the present value of the premium leg. The value of the protection leg is estimated using the PDs and LGDs of the
respective customers, whereas the value of the premium leg is estimated by the present value of the future fee payments to be
received. If the protection leg is higher than the premium leg, financial guarantees have a negative fair value.
Trading book disclosure according to §64 section 15 BWG
Erste Group maintained a trading book in accordance with CRR Art. 94 (3) b and c including a market value of EUR 24,341 million
as of 31 December 2025 (2024: EUR 16,937 million).
The publication of the new final RTS by the EBA on the determination of the long/short classification led to a corresponding
adjustment of the methodology for determining the trading book volume.
27. Hedge Accounting
Erste Group makes use of derivative instruments to hedge exposures to interest rate risk and foreign currency risk. As permitted by
the transitional provisions of IFRS 9, Erste Group has elected to continue to apply the hedge accounting requirements of IAS 39.
On the balance sheet, derivatives designated as hedging instruments are carried at fair value (dirty price). They are presented in the
line item ‘Hedge accounting derivatives’ on the asset or liability side depending on whether their fair value is positive or negative.
i. Fair value Hedge
For qualifying and designated fair value hedges, the change in the fair value (clean price) of a hedging instrument is recognised in
the statement of income under the line item ‘Net trading result’. Interest income and expenses on hedging derivatives are reported
in the line item ‘Other similar income’ or ‘Other similar expenses’ under ‘Net interest income’. The change in the fair value of the
hedged item attributable to the hedged risk is also recognised in the statement of income under the line item ‘Net trading result’
and adjusts the carrying amount of the hedged item.
Erste Group also applies portfolio fair value hedges of interest rate risk as regulated by IAS 39.AG114-AG132. For this purpose,
Erste Group makes use of the relaxation provided by the EU-carve out for so called ‘bottom layer’ hedges. More details are
discussed in part ‘Hedges of interest rate risk’ below. The change in the fair value of the hedged items attributable to the hedged
interest risk in portfolio fair value hedges is presented on the balance sheet under the line item ‘Fair value changes of hedged items
in portfolio hedge of interest rate risk’.
For terminated hedges the fair value adjustment of the hedged item is amortised until maturity of the financial instrument. In the
statement of income the amortisation is presented under ‘Net interest income’ in the line item ‘Interest income’ if the hedged item
was a financial asset or in the line item ‘Interest expenses’ if the hedged item was a financial liability. For portfolio fair value hedges
of interest rate risk the fair value adjustment related to the terminated hedge is amortised to the statement of income on a straight-
line basis in the line item ‘Other similar income’ under ‘Net interest income’.
ii. Cashflow Hedge
For designated and qualifying cash flow hedges, the effective portion of the gain or loss on the hedging instrument is recognised as
OCI in the line ‘Cash flow hedge reserve’ of the statement of comprehensive income. The accumulated other comprehensive
income is presented under ‘Cash flow hedge reserve’ in the statement of changes in equity. The ineffective portion of the gain or
loss on the hedging instrument is recognised in the statement of income under the line item ‘Net trading result’. For determination
of the effective and ineffective portions, the derivative is considered at its clean price, i.e. excluding the interest component. When
the hedged cash flow affects the statement of income, the gain or loss on the hedging instrument is reclassified from other
comprehensive income on the corresponding income or expense line item in the statement of income (mainly ‘Other similar
income’ or ‘Other similar expenses’ under ‘Net interest income’). As far as accounting for hedged items in cash flow hedges is
concerned, there is no change compared to the situation when no hedging is applied.
For terminated hedges the cumulative gain or loss on the hedging instrument that has been recognised in other comprehensive
income remains in ‘Cash flow hedge reserve’ until the transaction occurs.
215
iii. Net investment hedge
For designated and qualifying net investment hedges, the effective portion of the gain or loss on the hedging instrument is
recognised as OCI in the line ‘Currency reserve’ of the statement of comprehensive income. The accumulated other comprehensive
income is presented under ‘Currency reserve’ in the statement of changes in equity.
For terminated hedges the cumulative gain or loss on the hedging instrument that has been recognised in other comprehensive
income remains in ‘Currency reserve’ until the hedged net investment is disposed of.
If the spot FX rate is designated as the hedged risk, the undesignated part of the hedging instrument is treated as a derivative – held
for trading and recognised in the statement of income under the line item ‘Net trading result’. However, accruals of forward points
on FX swaps are presented in the line item ‘Other similar income’ or ‘Other similar expenses’ under ‘Net interest income’.
HEDGES OF INTEREST RATE RISK
As an inherent part of its business Erste Group is exposed to interest rate risk arising from the interest characteristics and
behaviour of assets, liabilities and off-balance sheet items. This relates to the existing balance sheet items as well as to expected
development of the balance sheet and banking activities. Interest rate risk can generally be defined as a potential deterioration of a
bank’s financial condition in reaction to adverse movements in market interest rates.
Hedge accounting activities relate to interest risk bearing exposures in the banking book. The interest rate risk of the banking book
is managed by Group Asset Liability Management (ALM). Interest rate risk management actions of ALM are approved as part of
the ALM strategy by Group Asset Liability Committee (ALCO). For hedging relationships qualifying for hedge accounting hedge
effectiveness is measured by risk management unit which is independent from ALM as the risk taker.
The objective of the interest rate risk management in the banking book is to optimise the risk and return of interest rate risk
exposures. For this purpose and for compliance with external and internal regulations and limitations Erste Group manages the
interest rate risk from the earnings and economic value perspectives. The focal point of the interest rate risk analysis from the
earnings perspective is the variation in earnings, i.e. the net interest income. The changes in interest rates have an impact on the
bank’s earnings via its distinct impact on interest income and interest expenses accrued on assets and liabilities, respectively. The
economic value perspective views the interest rate risk as changes in the economic value of equity. It can be identified as the
present value of cash-flows arising from asset, liability and off-balance-sheet items. Change in interest rates alters both the size of
future cash-flows and the value of discount rates applied in the calculation.
Existing balance sheet items and contributions of planned or forecast transactions are analysed through the earnings and economic
value-based metrics. Erste Group keeps the risk within predefined limits. When actively managing interest rate risk ALM gives
preference to investing in bonds and entering into derivatives. In general, the policy of Erste Group is to swap all substantial fixed
or structured issued bonds to floating items. Occasionally, ALM may decide not to swap certain benchmark issued bonds as part of
the interest risk management.
Interest rate swaps are the most common derivatives used to manage interest rate. If fixed rate repricing profiles of assets or
liabilities do not fit to the interest rate risk management strategy they are swapped into variable rate items (usually 3-month money
market rate such as EURIBOR). In other cases, variable rate repricing profiles of assets or liabilities may need to be swapped into
fixed rate items.
Erste Group employs hedge accounting to address accounting mismatches resulting from different measurement requirements for
derivatives which are measured at fair value through profit or loss and financial assets and liabilities in the banking book measured
at amortised cost or at fair value through other comprehensive income. Some of the accounting mismatches are addressed by
designating financial assets or financial liabilities as measured at FVPL (fair value option) without the need to use hedge
accounting.
Fair value hedges address the risk management activities of swapping fixed rate assets or liabilities into variable rate. On the other
hand, cash flow hedges are used when floating rates assets or liabilities are swapped into fixed ones (please refer also to the
discussion of proxy hedges below).
For hedges of interest rate risk of portfolios of prepayable fixed rate loans Erste Group applies requirements for portfolio fair value
hedges of interest rate risk as regulated by IAS 39.AG114-AG132. For this purpose, Erste Group makes use of the relaxation
provided by the EU-carve out and hedges the interest rate risk in respect of so called ‘bottom layer’ amount. The bottom layer
amount is expected not to be affected by prepayments of loans (including a margin of conservatism). Thus, it represents a stable
fixed interest rate exposure which is hedged by using interest rate swaps. With this approach, any prepayments, other
216
derecognitions and impairments are attributed to the un-hedged buffer amount above the designated bottom layer. Thus, they do
not affect the hedge effectiveness unless their amount hits the designated hedged bottom layer level.
Fair value hedges are designated in respect of the interest rate risk component of the fair value changes of the hedged fixed rate
items. The hedged interest rate risk portion in fair value hedges relates to the observed interest rate (swap yield curve) component.
I.e. the fair value volatility resulting from changes in the spread of the hedged fixed rate instrument over the swap yield curve is
excluded from hedge accounting and is not accounted for.
Similarly, in cash flow hedges the hedged risk is designated in respect of the variable cash flows portion equal to the interest index
of the swap (such as EURIBOR). The credit spreads over the swap index are excluded from hedge accounting.
The hedging interest derivatives are economically related to the hedged interest rate risk component of the hedged item. The non-
interest components (such as credit spreads) of the hedged items are outside the hedging relationship. As a result, comparable
valuation inputs are applied on both sides of the hedging relationship. Thus offsetting effects are recognised to the extent the
economic relationship exists without giving rise to artificial volatility in profit or loss. The hedged interest risk component is the
most significant factor affecting fair value changes of the hedged item.
For cash flow hedges of deposits with central banks (disclosed under the line ‘Interbank loans/repos’ below) no forward-looking
curve over the hedging period exists for the hedged interest rates (such as DFR of the ECB or two-week repo rate of the CNB). In
such cases the hedged risk is replicated by another rate for which the forward-looking curve exists (such as €STR swap curve or 1M
PRIBOR swap curve). A proof of a strong correlation between the rates is necessary.
The designated hedging relationships normally correspond to the economic hedges set up by ALM when managing the interest rate
risk. However, in some cases, the hedging derivatives may not be directly related to specific assets or liabilities but they manage the
overall interest risk position. Also, the derivatives may relate to instruments which do not qualify as hedged items under the IFRS
hedge accounting requirements. In order to account for risk mitigating effects of such derivatives Erste Group searches for suitable
hedged items providing the best fit to the terms of the derivative and designates an effective hedging relationship (so called proxy
hedges). Typically cash flow hedges of variable rate assets are designated on such a basis whereby the actual economically hedged
risk may result from modelled fixed rate profile of demand deposit liabilities.
The hedge ratio is chosen in compliance with the rules defined in IAS 39. The volume of the hedging instrument which is
designated for the hedge relation can never be greater than the volume of the hedged item. If the notional of a hedging derivative is
greater than the notional of the hedged item the respective proportion of the derivative is designated as hedging instrument.
Further, the tenor of the hedging instrument is never longer than the tenor of the hedged item.
Sources of hedge ineffectiveness can result from:
_ designation of hedging instruments and hedged items during their life rather than from their inception
_ different discounting curves applied for hedged item and hedging instrument
_ different interest tenors of hedging swaps and hedged variable rate items in cash flow hedges
_ volatility of present value of floating leg of hedging swaps in fair value hedges
_ different trade dates for the hedging instrument and the hedged item
_ real prepayments of a loan portfolio deviating from expected prepayments
_ credit risk adjustments (CVA, DVA) on the hedging derivatives.
Notional amounts of hedged items – hedges of interest rate risk

|  | Notional amount
in EUR million | Type of hedged items | Dec 24 | Dec 25
Fair value hedges |  |  |
Assets | Portfolios of client loans | 1,198 | 2,441
Assets | Single loans | 268 | 23
Assets | Bonds at FVOCI | 838 | 620
Assets | Bonds at AC | 5,872 | 6,273
Liabilities | Issued bonds | 22,804 | 27,347
Liabilities | Other liabilities/repos | 50 | 50
Cash flow hedges |  |  |
Assets | Interbank loans/repos | 564 | 2,386
Assets | Client loans | 1,608 | 2,676

217
Portfolio hedges of defined bottom layer amounts (bottom layer hedges) are disclosed in the table with the nominal hedged bottom
layer amounts. Client loans hedged in portfolio hedges are disclosed in the balance sheet line item ‘Financial assets measured at
amortised cost’, with a carrying amount of EUR 17.524 million ( 2024: EUR 6,860 million).
HEDGES OF FOREIGN EXCHANGE RISK
The objective of foreign exchange risk management in the banking book is to avoid profit or loss impacts of unfavourable market
movements of foreign exchange rates. Only a minor part of foreign exchange risk management activities requires using of hedge
accounting.
Currently bonds and loans with notional amount of EUR 1,587 million (2024: EUR 1,637 million) are hedged in cash flow hedges
by using cross currency swaps as hedging instruments. FX swaps with notional amount of EUR 120 million (2024:
EUR 180 million) are used as hedging instrument in hedges of interest accruals on financial assets in foreign currency. Sources of
hedge ineffectiveness can result from the hedged cash flows falling under the hedged volume and from credit risk adjustments
(CVA, DVA) on the hedging derivatives.
Furthermore, Erste Group mitigates structural FX risk of its subsidiaries with non-EUR functional currency (currently CZK and
HUF). The basis for managing this risk are the EBA Guidelines on the treatment of structural FX which require that the risk is
either directly mitigated using an FX hedge or a capital requirement is imposed. Erste Group uses a mix of these two approaches.
For the hedging part it designates net investment hedges. Hedging instruments are short-term FX swaps which are rolled over as
part of the hedging strategy.
QUANTITATIVE DISCLOSURES
In the tables below, detailed information related to hedging instruments and hedged items in fair value and cash flow hedges are
reported. The indicated values for fair value hedges include single hedges as well as portfolio hedges, which due to immateriality
are not shown separately.
Hedging instruments

| Carrying amount |  |  | Timing of the nominal amounts of the instruments
in EUR million | Assets | Liabilities | Change in FV for the period used for calculating hedge ineffectivness | Notional | ≤ 3 m | > 3 m and ≤ 1 y | > 1 y and ≤ 5 y | > 5 y
Dec 25 |  |  |  |  |  |  |  |
Fair value hedges | 684 | 891 | 190 | 36,761 | 525 | 2,385 | 20,769 | 13,083
Interest rate risk | 684 | 891 | 190 | 36,761 | 525 | 2,385 | 20,769 | 13,083
Cash flow hedges | 115 | 17 | -63 | 6,723 | 0 | 560 | 6,163 | 0
Interest rate risk | 33 | 11 | -23 | 5,062 | 0 | 500 | 4,562 | 0
Foreign exchange risk | 82 | 6 | -40 | 1,661 | 0 | 60 | 1,601 | 0
Hedge of net investments in a foreign operation | 0 | 54 | -67 | 1,881 | 852 | 1,029 | 0 | 0
Total gross amounts | 799 | 962 | 60 | 45,365 | 1,377 | 3,974 | 26,932 | 13,083
Offset | -568 | -792 |  |  |  |  |  |
Total | 231 | 170 | 60 | 45,365 | 1,377 | 3,974 | 26,932 | 13,083
Dec 24 |  |  |  |  |  |  |  |
Fair value hedges | 621 | 1,101 | 441 | 30,858 | 593 | 1,762 | 14,511 | 13,992
Interest rate risk | 621 | 1,101 | 441 | 30,858 | 593 | 1,762 | 14,511 | 13,992
Cash flow hedges | 95 | 42 | 78 | 5,450 | 315 | 382 | 3,313 | 1,440
Interest rate risk | 50 | 12 | 82 | 3,751 | 278 | 199 | 2,401 | 874
Foreign exchange risk | 45 | 30 | -4 | 1,698 | 37 | 184 | 912 | 566
Hedge of net investments in a foreign operation | 2 | 1 | 3 | 767 | 122 | 645 | 0 | 0
Total gross amounts | 718 | 1,143 | 522 | 37,074 | 1,029 | 2,790 | 17,824 | 15,431
Offset | -537 | -949 |  |  |  |  |  |
Total | 181 | 194 | 522 | 37,074 | 1,029 | 2,790 | 17,824 | 15,431

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The hedging instruments are presented in the line ‘Hedge accounting derivatives’ in the balance sheet.
Hedged items in fair value hedges

|  | Hedge adjustments
in EUR million | Carrying amount | included in the carrying amount | Thereof: for the period used for recognition of hedge ineffectiveness | Remaining adjustments for terminated hedges
Dec 25 |  |  |  |
Financial assets at FVOCI |  |  |  |
Interest rate risk | 584 | -17 | 16 | 1
Financial assets at AC |  |  |  |
Interest rate risk | 23,716 | -371 | -253 | 10
Financial liabilities at AC |  |  |  |
Interest rate risk | 26,626 | -616 | -26 | 13
Dec 24 |  |  |  |
Financial assets at FVOCI |  |  |  |
Interest rate risk | 788 | -38 | 11 | 2
Financial assets at AC |  |  |  |
Interest rate risk | 24,440 | -123 | 41 | 12
Financial liabilities at AC |  |  |  |
Interest rate risk | 23,783 | -558 | -510 | 32

The hedged items are disclosed in the following line items in the balance sheet:
_ Financial assets at fair value through other comprehensive income: debt securities
_ Financial assets at amortised cost: loans and advances to customers
_ Financial assets at amortised cost: debt securities
_ Financial liabilities at amortised cost: debt securities issued
Hedged items in cash flow hedges and net investment hedges

in EUR million | Change in FV for the period used for calculating hedge ineffectiveness | Cash flow hedge reserve and foreign currency translation reserve for continuing hedges | Cash flow hedge reserve and foreign currency translation reserve for terminated hedges
Dec 25 |  |  |
Interest rate risk | 68 | -21 | 0
Foreign exchange risk | -15 | 6 | 0
Hedge of net investments in a foreign operation | 67 | -64 | 0
Total | 121 | -79 | 0
Dec 24 |  |  |
Interest rate risk | -54 | -7 | -21
Foreign exchange risk | 20 | 20 | 0
Hedge of net investments in a foreign operation | -3 | 3 | 0
Total | -36 | 16 | -21

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Effects of hedge accounting in profit or loss and other comprehensive income

|  |  | Hedging reserve reclassified to profit or loss because
in EUR million | Hedge ineffectiveness recognised in P&L | Hedging gains/losses recognised in OCI | the hedged item has affected profit or loss | the hedged future cash flows are no longer expected to occur
Dec 25 |  |  |  |
Fair value hedges |  |  |  |
Interest rate risk | -3 | 0 | 0 | 0
Cash flow hedges |  |  |  |
Interest rate risk | 0 | -23 | -6 | 0
Foreign exchange risk | 0 | -40 | 62 | 0
Hedge of net investments in a foreign operation | 0 | -67 | 0 | 0
Total | -3 | -130 | 56 | 0
Dec 24 |  |  |  |
Fair value hedges |  |  |  |
Interest rate risk | -18 | 0 | 0 | 0
Cash flow hedges |  |  |  |
Interest rate risk | 1 | 81 | -24 | 0
Foreign exchange risk | 1 | -5 | -31 | 0
Hedge of net investments in a foreign operation | 0 | 3 | 0 | 0
Total | -16 | 79 | -55 | 0

Ineffectiveness from both fair value and cash flow hedges is presented under ‘Net trading result’ in the statement of income. The
amounts reclassified from the cash flow hedge reserve are presented in the line ‘Other similar income’ under ‘Net interest income’
for hedges of interest rate risk and ‘Net trading result’ for hedges of foreign exchange risk.
28. Offsetting of financial assets and liabilities
The following table shows netting effects on the balance sheet of Erste Group as well as the impacts of offsetting financial
instruments which are subject to offsetting agreements.
Financial assets and liabilities subject to offsetting and potential offsetting agreements

|  |  |  | Potential effects of netting agreements not qualifying for balance sheet offsetting |
in EUR million | Financial assets/liabilities (gross) | Amounts offset (gross) | Financial assets/liabilities in balance sheet (net) | Financial instruments | Cash collateral received/ pledged | Other financial collateral received/ pledged | Net amount after potential offsetting
Dec 25 |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Derivatives | 4,557 | 3,496 | 1,061 | 450 | 256 | 0 | 355
Variation margin assets | 375 | 375 | 0 | 0 | 0 | 0 | 0
Reverse repurchase agreements | 19,101 | 0 | 19,101 | 0 | 110 | 18,976 | 15
Total | 24,033 | 3,871 | 20,162 | 450 | 366 | 18,976 | 369
Liabilities |  |  |  |  |  |  |
Derivatives | 4,849 | 3,587 | 1,262 | 450 | 204 | 0 | 608
Variation margin liabilities | 285 | 284 | 0 | 0 | 0 | 0 | 0
Repurchase agreements | 9,110 | 0 | 9,110 | 0 | 9 | 9,095 | 5
Total | 14,243 | 3,871 | 10,372 | 450 | 213 | 9,095 | 613

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|  |  |  | Potential effects of netting agreements not qualifying for balance sheet offsetting |
in EUR million | Financial assets/liabilities (gross) | Amounts offset (gross) | Financial assets/liabilities in balance sheet (net) | Financial instruments | Cash collateral received/ pledged | Other financial collateral received/ pledged | Net amount after potential offsetting
Dec 24 |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Derivatives | 5,081 | 3,674 | 1,407 | 609 | 354 | 0 | 444
Variation margin assets | 589 | 585 | 3 | 0 | 0 | 0 | 3
Reverse repurchase agreements | 24,609 | 0 | 24,609 | 0 | 109 | 24,329 | 171
Total | 30,279 | 4,259 | 26,020 | 609 | 464 | 24,329 | 618
Liabilities |  |  |  |  |  |  |
Derivatives | 5,383 | 4,040 | 1,343 | 609 | 295 | 2 | 437
Variation margin liabilities | 221 | 220 | 1 | 0 | 0 | 0 | 1
Repurchase agreements | 11,350 | 0 | 11,350 | 0 | 32 | 11,309 | 8
Total | 16,953 | 4,259 | 12,694 | 609 | 327 | 11,311 | 446

The impact of offsetting is shown in the column ‘Amounts offset (gross)’.
Erste Group undertakes interest rate derivative transactions via London Clearing House and EUREX by fulfilling all offsetting
requirements according to IAS 32. Offsetting is carried out between gross asset and liability derivative positions. The net derivative
position is further offset with variation margin amounts. As a result, the offsetting of derivatives has to be viewed in relation to the
variation margin assets and liabilities balances. The sum of the amounts offset in the lines ‘Derivatives’ and ‘Variation margin
assets’ in the table for financial assets equals the sum of the amounts offset in the lines ‘Derivatives’ and ‘Variation margin
liabilities’ in the table for financial liabilities. The variation margin assets are presented under the balance sheet items ‘Cash and
cash balances’. The variation margin liabilities are presented under the balance sheet item ‘Financial liabilities measured at
amortised cost’, subitem ‘Deposits from banks’.
Erste Group employs master netting agreements and repurchase agreements as a means of reducing credit risk of derivative and
financing transactions. They qualify as potential offsetting agreements.
Master netting agreements are relevant for counterparties with multiple derivative contracts. They provide for the net settlement of
all the contracts in the event of default of any counterparty. For derivatives transactions the values of assets and liabilities that
would be set off as a result of master netting agreements are presented in the column ‘Financial instruments’. If the net position is
further secured by cash collateral or other financial collaterals the effects are disclosed in columns ‘Cash collateral received /
pledged’ and ‘Other financial collateral received / pledged’ respectively.
Repurchase agreements are primarily financing transactions. They are structured as a sale and subsequent repurchase of securities
at a pre-agreed price and time. This ensures that the securities remain in the hands of the lender as collateral in case the borrower
defaults on fulfilling any of its obligations. Offsetting effects from repurchase agreements are disclosed in the column ‘Other
financial collateral received / pledged’ respectively. Collateral is presented at the fair value of the transferred securities. However, if
the fair value of collateral exceeds the carrying amount of the receivable/liability from the repo transaction the value is capped at
the level of the carrying amount. Remaining position may be secured by cash collateral. Cash and other financial collateral involved
in these transactions is restricted from being used by the transferor during the time of the pledge. For further details regarding
repurchase and reverse repurchase transactions Erste Group refers to Note 29 Transfers of financial assets – repurchase transactions
and securities lending.
29. Transfers of financial assets – repurchase transactions and securities lending
Repurchase and reverse repurchase agreements
Transactions involving sales of securities under an agreement to repurchase them at a specified future date are also known as
‘repos’ or ‘sale and repurchase agreements’. Securities sold in such transactions are not derecognised from the balance sheet, as
Erste Group retains substantially all risks and rewards of ownership, because the securities are repurchased at a fixed price when
the transaction ends. Furthermore, Erste Group is the beneficiary of all coupons and other income payments received on the
transferred assets over the period of the transactions. These payments are remitted to Erste Group or are reflected in the repurchase
price.
The cash received upon sale of securities is recognised on the balance sheet with a corresponding obligation to return under the
line item ‘Financial liabilities at amortised cost’, sub-items ‘Deposits from banks’ or ‘Deposits from customers’ reflecting the
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transaction’s economic substance as a loan to Erste Group. The difference between the sale and repurchase prices is treated as
interest expense which is accrued over the life of the agreement and recorded in the statement of income in the line item ‘Interest
expenses’ under ‘Net interest income’. Financial assets transferred out by Erste Group under repurchase agreements remain on the
Group’s balance sheet and are presented separately under the original balance sheet items in the ‘thereof pledged as collateral’
lines. The measurement category of the transferred financial assets does not change.
Conversely, securities purchased under agreements to resell at a specified future date are not recognised on the balance sheet. Such
transactions are also known as ‘reverse repos’. The consideration paid is recorded on the balance sheet under the line item
‘Financial assets at amortised cost’, sub-items ‘Loans and advances to banks’ and ‘Loans and advances to customers’ reflecting the
transaction’s economic substance as a loan by Erste Group. The difference between the purchase and resale prices is treated as
interest income and is accrued over the life of the agreement and recorded in the statement of income in the line item ‘Interest
income’ under ‘Net interest income’.
Securities lending and borrowing
In securities lending transactions, the lender transfers ownership of securities to the borrower on the condition that the borrower
will retransfer, at the end of the agreed loan term, ownership of instruments of the same type, quality and quantity and will pay a
fee determined by the duration of the lending. The transfer of the securities to counterparties via securities lending does not result
in derecognition. Substantially all the risks and rewards of ownership are retained by Erste Group as a lender because the securities
are received at the end of the securities lending transaction. Furthermore, Erste Group is the beneficiary of all the coupons and
other income payments received on the transferred assets over the period of the securities lending. Securities lent are presented
separately under the original balance sheet items in the ‘thereof pledged as collateral’ lines. Fee income from securities lending
transactions is presented in the statement of income in the line ‘Fee and commission income’ under ‘Net fee and commission
income’.
Securities borrowed are not recognised on the balance sheet unless they are then sold to third parties. If such sales occur, the
obligation to return the securities is recorded on the balance sheet as a short sale within ‘Financial liabilities held for trading’, sub-
item ‘Other financial liabilities’. Fee expense incurred on securities borrowing transactions is presented in the statement of income
in the line ‘Fee and commission expenses’ under ‘Net fee and commission income’.

| Dec 24 | Dec 25
in EUR million | Carrying amount of transferred assets | Carrying amount of associated liabilities | Carrying amount of transferred assets | Carrying amount of associated liabilities
Repurchase agreements | 3,870 | 3,593 | 1,840 | 1,699
Financial assets at AC | 3,417 | 3,145 | 1,478 | 1,363
Trading assets | 409 | 406 | 123 | 123
Financial assets at FVOCI | 44 | 42 | 239 | 213
Securities lendings | 786 | 0 | 1,391 | 0
Financial assets at AC | 650 | 0 | 1,230 | 0
Trading assets | 73 | 0 | 125 | 0
Financial assets at FVOCI | 63 | 0 | 37 | 0
Total | 4,656 | 3,593 | 3,231 | 1,699

The transferred financial instruments consist of bonds and other interest-bearing securities. The total amount of transferred
financial assets represent the carrying amount of financial assets in the respective balance sheet positions for which the transferee
has a right to sell or repledge. The associated liabilities from repo transaction, which are measured at amortised cost, represent an
obligation to repay the borrowed funds.
The following table shows fair values of the transferred assets and associated liabilities for repo transactions with an existing
recourse right only on the transferred assets:

| Dec 24 | Dec 25
in EUR million | Fair value of transferred assets | Fair value of associated liabilities | Net position | Fair value of transferred assets | Fair value of associated liabilities | Net position
Financial assets at AC | 3,299 | 3,137 | 162 | 1,414 | 1,363 | 51
Trading assets | 409 | 406 | 3 | 123 | 123 | 0
Financial assets at FVOCI | 44 | 42 | 2 | 239 | 212 | 26
Total | 3,752 | 3,585 | 167 | 1,776 | 1,698 | 78

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30. Financial assets pledged as collaterals
Finan cial assets pledged as collaterals for financial liabilities

in EUR million | Balance sheet line of liabilities | Financial assets HfT | Non-trading financial assets at FVPL | Financial assets at FVOCI | Financial assets at AC | Total
Dec 25 |  |  |  |  |  |
Repurchase agreements | Financial liabilities at AC, at FVPL and HFT | 123 | 0 | 239 | 1,478 | 1,840
Securities lending | Financial liabilities at AC, at FVPL and HFT | 125 | 0 | 37 | 1,230 | 1,391
Assets pledged for derivatives | Financial liabilities HFT and Hedge accounting derivatives | 119 | 0 | 0 | 349 | 468
Assets pledged for covered bonds | Financial liabilities at AC and FVPL | 0 | 0 | 0 | 23,698 | 23,698
Refinancing transactions & other collateral arrangements | Financial liabilities at AC | 0 | 85 | 0 | 15,045 | 15,131
Ward money | Financial liabilities at AC | 0 | 9 | 0 | 1,458 | 1,467
Total |  | 367 | 94 | 275 | 43,259 | 43,995
Dec 24 |  |  |  |  |  |
Repurchase agreements | Financial liabilities at AC, at FVPL and HFT | 409 | 0 | 44 | 3,417 | 3,870
Securities lending | Financial liabilities at AC, at FVPL and HFT | 73 | 0 | 63 | 650 | 786
Assets pledged for derivatives | Financial liabilities HFT and Hedge accounting derivatives | 115 | 0 | 1 | 285 | 400
Assets pledged for covered bonds | Financial liabilities at AC and FVPL | 0 | 0 | 0 | 22,917 | 22,917
Refinancing transactions & other collateral arrangements | Financial liabilities at AC | 0 | 47 | -42 | 7,835 | 7,840
Ward money | Financial liabilities at AC | 0 | 1 | 42 | 1,074 | 1,117
Total |  | 598 | 48 | 108 | 36,176 | 36,929

To enhance transparency, the carrying amounts of financial assets pledged as collaterals are being presented in tabular form
starting with 2025.
The fair value of collateral received which may be repledged or resold even without the collateral provider’s default was
EUR 20,331 million (2024: EUR 25,258 million). Collateral with fair value of EUR 6,153 million (2024: EUR 6,897 million) was
resold or repledged. The bank is obliged to return the resold and repledged collateral.
31. Securities

| Dec 24 | Dec 25
|  |  | Financial assets |  |  | Financial assets
in EUR million | At AC | Trading assets | Mandatorily at FVPL | Designated at FVPL | At FVOCI | At AC | Trading assets | Mandatorily at FVPL | Designated at FVPL | At FVOCI
Bonds and other interest-bearing securities | 52,889 | 10,095 | 1,424 | 44 | 9,388 | 58,655 | 8,326 | 1,786 | 0 | 9,068
Listed | 47,666 | 3,240 | 860 | 0 | 7,988 | 54,957 | 4,518 | 1,247 | 0 | 7,830
Unlisted | 5,223 | 6,855 | 564 | 44 | 1,401 | 3,698 | 3,808 | 539 | 0 | 1,238
Equity-related securities | 0 | 141 | 464 | 0 | 109 | 0 | 222 | 523 | 0 | 113
Listed | 0 | 136 | 117 | 0 | 0 | 0 | 209 | 147 | 0 | 1
Unlisted | 0 | 5 | 348 | 0 | 109 | 0 | 13 | 376 | 0 | 113
Total | 52,889 | 10,236 | 1,889 | 44 | 9,498 | 58,655 | 8,548 | 2,309 | 0 | 9,181

Investment funds units are reported within bonds and other interest-bearing securities. Bonds and other interest-bearing securities
in the amount of EUR 14,201 million (2024: EUR 13,414 million) are due in the following year.
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Risk and capital management
32. Financial risk management
Risk Policy and strategy
Erste Group has developed a risk management framework that is forward-looking and tailored to its business and risk profile. This
framework is based on a clear risk strategy that sets out general principles according to which risk taking must be performed across
the Group. The risk strategy is consistent with the business strategy and incorporates the expected impact of external environment
on the planned business and risk development.
The risk strategy describes the current and targeted risk profile, defines risk management principles, strategic goals and initiatives
for the main risk types as well as sets strategic limits for the significant financial and non-financial risk types as defined in the Risk
Materiality Assessment. The risk strategy is executed within a clearly defined governance structure. This structure also applies to
monitoring of risk appetite, additional metrics, as well as to the escalation of limit breaches.
Erste Group is publishing online its disclosures under Article 434 of the Regulation (EU) No. 575/2013 on prudential requirements
for credit institutions and investment firms (Capital Requirements Regulation - CRR) and Regulation (EU) No. 876/2019 amending
Regulation (EU) No. 575/2013. Details are available on the website of Erste Group at www.erstegroup.com/ir.
Risk management organisation
Risk monitoring and control is achieved through a clear organisational structure with defined roles and responsibilities, delegated
authorities and risk limits.
The Management Board and in particular Erste Group’s Chief Risk Officer (Group CRO) perform the oversight function within
Erste Group’s risk management structure. Risk control and risk steering within Erste Group are performed based on the business
strategy and risk appetite approved by the Management Board. The Group CRO, working together with the chief risk officers of the
subsidiaries, is responsible for the implementation and adherence to the risk control and risk management strategies across all risk
types and business lines.
The Management Board and, in particular the Group CRO, ensure the availability of appropriate infrastructure and staff as well as
methods, standards and processes to that effect; the actual identification, measurement, assessment, approval, monitoring, steering
and limit setting for the relevant risks are performed on the operating entity level within Erste Group.
At group level, the Management Board is supported by several divisions established to perform operating risk control functions and
exercise strategic risk management responsibilities.
In 2025, the risk management organisation at Erste Bank Oesterreich was reorganized to strengthen the Austrian risk business and
ensure adequate resourcing. In the course of this initiative, a reallocation of responsibilities between Erste Group and Erste Bank
Oesterreich was undertaken.
At Erste Group, Group Retail Risk Management was transferred to the Group Credit Risk Management division (formerly ‘Group
Corporate Risk Management’). The organizational restructuring was formally enacted with effect from 1 June 2025. Moreover, the
established structure was continued and strengthened.
The following risk management functions report directly to the Group CRO:
_ Group Liquidity and Market Risk Management;
_ Enterprise wide & Operational Risk Management;
_ Credit Risk Methods;
_ Group Compliance;
_ Credit Risk Portfolio;
_ Group Credit Risk Management;
_ Cyber Risk Management;
_ Local Chief Risk Officers.
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The Management Board regularly deals with risk issues of all risk types in its regular board meetings. Actions are discussed and
taken when needed.
Furthermore, certain cross-divisional committees were established with the purpose of carrying out risk management activities in
the Erste Group.
_ Risk Committee of the Supervisory Board;
_ CRO Board;
_ Holding Credit Committee;
_ Market Risk Committee;
_ Operative Market Risk Committee;
_ Strategic Risk Executive Committee;
_ Strategic Risk Management Committee;
_ Stress Testing and Novel Risk Committee;
_ Group Resolution Committee;
_ United States Risk Committee;
_ Regional Operational Conduct Committee;
_ Group IT Risk & Security Committee;
_ Group Asset/Liability Committee;
_ Operational Liquidity Committee;
_ Banking Book Committee;
_ Capital Committee.
In addition, committees are established at local level, such as the ‘Team Risikomanagement’ in Austria. It is responsible for a
common risk approach with the Austrian savings banks.
Group-wide risk and capital management
Enterprise-wide Risk Management includes as its fundamental component the Internal Capital Adequacy Assessment Process
(ICAAP) as required under Pillar 2 of the Basel framework and regulatory guides (e.g., ECB Guide to ICAAP).
The ICAAP framework is designed to support the management of the bank in managing the risk portfolios as well as the coverage
potential and to ensure that the bank always holds adequate capital for the nature and magnitude of its risk profile. The framework
is tailored to the Erste Group’s business and risk profile and reflects the strategic goal of protecting shareholders and senior debt
holders while ensuring the sustainability of the organisation.
The ICCAP framework is a modular and comprehensive management and steering system within Erste Group as well as an
essential part of the overall steering and management instruments. Its components necessary to ensure all aspects, in particular to
fulfil regulatory requirements and to provide an effective internal steering tool, can be clustered as follows:
_ Risk Appetite Statement (RAS), limits and risk strategy;
_ portfolio and risk analytics including Risk Materiality Assessment (RMA), concentration risk management and stress testing;
_ Risk-bearing Capacity Calculation (RCC);
_ capital allocation and performance management;
_ planning of key risk indicators;
_ recovery and resolution planning.
In addition to the ICAAP’s ultimate goal of assuring capital adequacy and sustainability at all times, the ERM components serve to
support the bank’s management in pursuing its strategy.
RISK APPETITE
Risk appetite defines the maximum level of risk Erste Group is willing to accept in pursuing its business goals. The overall
approach includes a risk appetite statement, risk limits and the roles and responsibilities of those overseeing the implementation
and monitoring of the risk appetite framework. Limit framework (i.e., risk appetite framework) of Erste Group includes risk limits
set in Risk Appetite Statement and Risk Strategy, industry limits, maximum lending limits, climate related metrics and operational
limits.
The Group Risk Appetite Statement (Group RAS) represents a strategic statement that expresses the maximum level of risk it is
willing to accept in order to deliver its business objectives. The Group RAS acts as a binding constraint to Erste Group’s business
activities within its overall risk appetite via triggers and limits approved by the Management Board and the Risk Committee of the
Supervisory Board and brought to the Supervisory Board for information. It is integrated and embedded into Erste Group’s
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structural processes, including business and risk strategy, budgeting process, capital and liquidity planning, recovery plan, stress
testing and remuneration framework. The Group RAS consists of a set of core risk metrics (capital, liquidity, risk/earnings)
providing quantitative direction for overall risk-return steering and qualitative statements in the form of key risk principles that are
part of the guidelines for managing risks.
The core risk metrics are set as ultimate boundaries for the Group risk-return target setting. They are also a key part of the annual
strategic planning / budgeting process and give an overall picture of capital, liquidity and risk-return trade-offs. The key objective of
the RAS is to:
_ ensure that Erste Group has sufficient resources to support its business at any given point in time and absorb stress events;
_ set boundaries for the Group’s risk target setting;
_ support the group’s financial strength and the robustness of its systems and controls.
To foster risk-return steering and to ensure proactive management of the risk profile, Erste Group creates its RAS on a forward-
looking basis. External constraints such as regulatory requirements create the floor and ceiling for the RAS and therefore the
amount of risk Erste Group is willing to accept. To ensure that the group remains within the targeted risk profile, a traffic light
system was established and assigned to the core metrics. This approach allows a timely delivery of information to the respective
governance and the implementation of effective remediation measures. The RAS traffic light system is defined as follows:
_ RAS is green: The target risk profile is within the specified boundaries.
_ RAS is amber: The undershooting or overshooting of a pre-defined threshold leads to an escalation to the designated governance
and the discussion of potential remediation actions.
_ RAS is red: The undershooting or overshooting of a pre-defined limit initiates an immediate escalation to the designated
governance and a prompt implementation of remediation actions.
Moreover, stress indicators are defined for selected core metrics and integrated into the assessment of the stress test results. They
are reported as early warning signals to the Management Board to support proactive management of the risk and capital profile.
In addition, supporting metrics and principles are defined by material risk type in the Group Risk Strategy based on Group RAS.
These support implementation of the mid- to long-term strategy. Risk management governance ensures full oversight of risk
decisions and sound execution of the Group risk strategy. Mitigating actions are undertaken as part of the regular risk management
process to ensure that the Group remains within its RAS.
Group RAS is also cascaded to local entities. Local RAS is approved by the Management Board to ensure compliance with the
Group RAS and approved also by the local management board to ensure alignment with local regulatory requirements. The Group
may also decide to include further compulsory constraints and limits in local RAS to ensure alignment with Group RAS and Group
Risk Strategy.
The Group further developed an aggregated and consolidated risk appetite dashboard, which is part of Group Risk Report (Group
Risk Report/Risk Dashboard) illustrating the group and local entities’ risk profile developments by comparing the risk exposure
and risk limits. The Group Risk Report/Risk Dashboard is regularly presented to the Management Board and to the Supervisory
Board (including Risk Committee of Supervisory Board) to support its review, oversight and monitoring of the group risk profile
and the risk profile of its local entities.
Group RAS 2025-2029 was approved by the Management Board and the Risk Committee of the Supervisory Board and brought to
the Supervisory Board for information in the last quarter of 2024.
ESG risks are embedded in the Risk Appetite Statement as well as in the Risk Strategy and are also part of Erste Group’s Risk
Materiality Assessments. They are integrated into Erste Group’s risk taxonomy as transversal risks drivers, impacting primary risk
types, such as credit, market, liquidity, non-financial and other risks. Erste Group’s definition of ESG risks is part of the Group
ICAAP Procedure and covers environmental, social and governance factors.
PORTFOLIO AND RISK ANALYTICS
Erste Group uses dedicated infrastructure, systems and processes to actively identify, measure, control, report and manage risks
within its portfolio. Portfolio and risk analytics processes are designed to quantify, qualify and discuss risks in order to raise aware-
ness to management in a timely manner.
Risk materiality assessment
The Risk Materiality Assessment (RMA) is a regular process for risk identification and assessment of potential impact of those risks
on the risk profile of the Group. It serves as a steering tool for the management in deciding on the necessity to allocate economic
capital (EC) in Pillar 2/ICAAP or liquidity in ILAAP (Internal Liquidity Adequacy Assessment Process), as well as for defining
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other risk steering measures. Risk steering and mitigation techniques are customized to the specific characteristics of each
individual risk, with general requirements based on the materiality grade.
Moreover, RMA is a crucial input for various risk management activities, such as defining priorities and strategic initiatives for the
Group’s risk strategy, setting limits within the risk appetite framework and scenario design for comprehensive- and reverse stress
tests.
Risk concentration analysis
Erste Group has implemented a process to identify measure, control and manage risk concentrations. This process is important to
ensure the long-term viability of Erste Group, especially in times of an adverse business environment and stressed economic
conditions.
The risk concentration analysis at Erste Group is performed on an annual basis covering credit risk, market risk, operational risk,
liquidity risk and inter-risk concentrations. Identified risk concentrations are considered in the scenario design of the
comprehensive stress test and measured under stressed conditions. The output of the risk concentration analysis additionally
contributes to the identification of material risks within the RMA and to the setting/calibration of Erste Group’s limit system.
Stress testing
Modelling sensitivities of the group’s assets, liabilities and profit or loss provides management with steering information and helps
to optimise Erste Group’s risk-return profile. Stress tests help factor in severe but plausible scenarios, providing further robustness
to measurement, steering and management. Risk modelling and stress testing are vital forward-looking elements of the ICAAP.
Finally, sensitivities and stress scenarios are considered within the group’s planning process.
Erste Group’s most complex stress testing activities are scenario stress tests that take comprehensive account of the impact of
various economic scenarios. This includes second-round effects on all major risk types (credit, market, liquidity and operational)
and effects on the associated volumes of assets and liabilities as well as on profit and loss. In addition to the standard scenario-
driven stress testing exercises, reverse stress tests are performed to identify a scenario or a combination of scenarios in which the
viability of the current business model can be questioned.
Erste Group has developed specific tools to translate macroeconomic variables (e.g., GDP or unemployment rate) into risk
parameters to support the stress testing process, combining bottom-up and top-down approaches. For adapting the stress
parameters, Erste Group additionally leverages the experience of its local professionals and uses, where appropriate, their statistical
models to simulate the impacts of macroeconomic variables on the risk parameters in the respective portfolios. Special attention is
taken to account for the granularity and special characteristics (i.e., countries and industries) when determining the segmentation
in which the stressed parameters are defined.
Erste Group has integrated climate stress test analysis into its internal stress‑testing framework. Both physical and transition risks
arising from projected climate change are included in the internal Climate Risk Stress Test. The scenario design is based on NGFS
(Network for Greening the Financial System) data and pathways. The climate stress test results are incorporated into the Bank’s
Risk Materiality Assessment. Climate stress test analysis supports the Group’s strategic approach to climate risk.
Results from Erste Group’s internal stress tests are analysed to decide on appropriate measures and inform bank steering. The
internal comprehensive stress tests performed in 2025 indicated that Erste Group remains within the stressed RAS in all years of
the adverse scenario after application of scenario contingent measures.
RISK-BEARING CAPACITY CALCULATION
The Risk-bearing Capacity Calculation (RCC) describes the methodology of Pillar 2 capital adequacy calculation. In contrast to the
normative (regulatory) view of Pillar 1, referring to the Group’s ability to fulfil all its capital-related regulatory and supervisory
requirements and demands, the RCC is based on an economic view of Pillar 1+ approach, assuming continuation of Erste Group as
expected by the ECB Guide to ICAAP. The RCC determines whether the Group has sufficient internal capital for covering all
(regulatory and economic) risks it is exposed to. Economic and normative perspectives at Erste Group are set in a way to mutually
inform each other and are integrated into all material business steering activities and decisions. In addition, with applied Pillar 1+
approach the Group increases efficiency and ensures comparability with the Pillar 1 calculation. Based on the results of the RMA,
the economic capital is considered for relevant risk types as approved by the Management Board. The economic capital
requirement is then compared to internally available capital (coverage potential) to cover the Group’s risks in Pillar 2. Both
economic capital and coverage potential are computed on the CRR scope of consolidation of Erste Group as ultimate parent entity
based on IFRS accounting standards.
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Besides the Pillar 1 risk types (credit, market in trading book, FX in banking book and operational risks), concentration risk,
interest rate risk in the banking book, credit spread risk in the banking book as well as business risk are explicitly considered
within the economic capital calculated over a horizon of one year and at a confidence level of 99.9%. For the calculation of the
economic capital, Erste Group uses, where possible, more risk sensitive/advanced methodologies tailored to its individual risk
profile and specificities of the Group’s individual risk exposures. Diversification effects between risks (inter-risk diversification) are
not considered, reflecting the Group’s prudent approach to maintain sufficient internal capital in times when correlations between
risks may change dramatically (like in times of stress). The largest portion of economic capital requirements is coming from credit
risk, which accounts for 72.5% of total economic capital requirements at the end of 2025.
The calculation of internal capital or coverage potential required to cover Pillar 2 risks/unexpected losses is based on Pillar 1+
approach. Namely, the regulatory own funds are adjusted by internal capital components, i.e. Pillar 2 adjustments, necessary to
come to the internally available capital deemed as risk-bearing and loss absorbing from the economic view (e.g. exclusion of
Additional Tier 1 and Tier 2 capital instruments, Pillar 2 IRB expected loss excess/shortfall add-on, year-to-date profit, if it is not
already considered in Pillar 1 capital, etc.).
The coverage potential must be sufficient to absorb Pillar 2 risks/unexpected losses resulting from the Group’s operations at any
point in time (normal and stressed), as reflected in the Group’s Risk Appetite through the limits set for Group economic capital
adequacy and stressed capital adequacy utilisation. At the end of 2025, the economic capital adequacy was at 49.7%, fully in line
with group RAS.
The Management Board and Supervisory Board (including Risk Committee of Supervisory Board) are briefed quarterly on the
results of the ICAAP capital adequacy through the Group Risk Report. The includes risk profile developments, available capital
(coverage potential), consideration of potential losses in stress situations, the degree of the risk limit utilisation and the overall
status of capital adequacy.
RISK PLANNING
Group Risk Planning framework is essential for the capital allocation and overall financial planning processes and supports the
adequate reflection of risks within the strategy, steering and management processes of the group.
Methods and instruments applied
Key risk indicators covered by the Risk Planning framework include indicators that provide an overview of incurred or potential
risks, with respect to both portfolio and economic environment developments. Indicators include RWA (and related indicators),
port-folio quality indicators (impairments, NPL/NPE and relevant performance indicators, etc.), as well as indicators required by
the regulatory authorities under the responsibility of the Risk division.
Planning activities are performed in close cooperation with all stakeholders in the group´s overall process and follow a clear
governance structure to ensure sound risk planning process.
Capital allocation
An important task integral to the risk planning process is the allocation of capital to entities, business lines and segments. This is
done with close cooperation between Risk Management and Controlling. Methodology for allocation reflects risk and controlling
processes to allocate capital with risk-return considerations.
ERSTE GROUP’S AGGREGATE CAPITAL REQUIREMENTS BY RISK TYPE
The following diagrams present the composition of the economic capital requirements according to type of risk:
Other risks include business risk.
1 Both CRD IV and CRR have been amended since the entry into force in 2014 inter alia with directive (EU) 2019/878 (CRD V), directive (EU) 2024/1619 (CRD VI; implementation is still in
political coordination), as well as regulations (EU) 2019/876 (CRR 2), (EU) 2020/873 (CRR Quick Fix) and regulation (EU) 2024/1623 (CRR3) which came into force on January 1 2025
and includes phased implementation deadlines, e.g., concerning the output floor.”
2 CRDV has been transposed by an amendment of the ABA (BGBl I 2021/98; BWG-Novelle) which entered into force on 31 May 2021.
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R ECOVERY AND RESOLUTION PLANS
The Directive (EU) 2014/59 as amended (Bank Recovery and Resolution Directive – BRRD) has been implemented in Austria into
national law by the Austrian Recovery and Resolution Act (‘Sanierungs- und Abwicklungsgesetz – BaSAG’).
On 18 April 2023, the European Commission published a legislative package for a framework on a Crisis Management and
Depositor Insurance (CMDI). The package consists of amendments to the BRRD, the Single Resolution Mechanism Regulation
(SRMR), the Deposit Guarantee Scheme Directive (DGSD) and the Daisy Chain deduction regime. The CMDI legislative package
was endorsed by the European Parliament and the Council and is currently subject to interinstitutional negotiations between these
bodies. The amendments to the Daisy Chain deduction regime were implemented through a Directive that was published in the
Official Journal of the European Union in April 2024, applicable since November 2024 and implemented also in the Austrian
BaSAG in 2025. The other parts of the CMDI package could enter into force in 2026 and be applicable in 2028.
Recovery Planning. In compliance with the current Austrian BaSAG, Erste Group annually submits a Group Recovery Plan to
Joint Supervisory Team (JST). ECB regularly assesses the Group Recovery Plan. The Group Recovery Plan identifies potential
options for the replenishment of capital and liquidity resources of the bank in order to cope with a range of severe scenarios
including both idiosyncratic and market-wide stress. The Recovery Framework is mainly reconciled with the Risk Appetite
Framework across indicators and indicator thresholds, ensuring comprehensive enterprise-wide risk management. It is relevant to
demonstrate that in a severe stress, which is close to a failing or likely to fail situation, there is sufficient recovery capacity available
to be able to recover back into the recovery green zone. The recovery governance described in the plan ensures timely identification
and proper management of a recovery situation of Erste Group. Furthermore, the assessment of the Group Recovery Plan and the
assessment of the overall recovery capacity are part of the Supervisory Review and Evaluation Process (SREP) assessment.
Resolution Planning. Erste Group collaborates with the resolution authorities in the drawing up of resolution plans as required
by BaSAG and EU Regulation No 806/2014 establishing the Single Resolution Mechanism (SRM Regulation). The legislative
framework allows for a multiple-point-of-entry (MPE) or a single-point-of-entry (SPE) resolution strategy. The Resolution
Authorities formed a joint decision in the resolution college for Erste Group which defines the MPE approach forming seven
separate resolution groups with Erste Group’s core CEE subsidiaries and Austria, but with SPE approaches on country level. This
results in having resolution groups in AT, CZ, HR, HU, RO, SI and SK. Under the MPE strategy, a group has more than one
Resolution Entity which is the entry point for resolution. The resolution plans (including resolution strategy and MREL decisions)
are regularly updated by the Resolution Authorities and subject to Joint Decision formed in a resolution college by Resolution
College Members.
MREL. The Bank Recovery and Resolution Directive (BRRD) introduced the Minimum Requirement for Own Funds and Eligible
Liabilities (MREL). MREL notifications are provided by the national resolution authorities on the level of resolution groups and
relevant individual subsidiaries of resolution entities, reflecting the resolution strategy, based on the MREL joint decision taken by
the resolution college. MREL requirements are expressed as a percentage of the total risk exposure amount (TREA) as well as lever-
age ratio exposure (LRE). In May 2025, Erste Group received Joint Decision determining the MREL for its resolution groups and
some non-resolution entities. The binding requirements are applicable from the date of the receipt of the notification of the act of
the relevant national resolution authority. Information on MREL targets have been published on the local entities’ website based
on legal notifications. MREL metric is integrated into the RAS and Recovery Framework of Erste Group.
33. Own funds and capital requirements
Regulatory requirements
Since 1 January 2014, Erste Group has been calculating the regulatory own funds and the regulatory capital requirements according
to the Capital Requirements Regulation (CRR, Regulation (EU) No. 575/2013) 1 and the Capital Requirement Directive (CRD IV,
Directive (EU) 2013/36/EU). Both the CRD IV and CRD V 2 were transposed into national law in the Austrian Banking Act (ABA).
All requirements as defined in the CRR, the ABA and in technical standards issued by the European Banking Authority (EBA) are
applied by Erste Group for regulatory purposes.
Furthermore Erste Group also fulfils capital requirements determined in the Supervisory Review and Evaluation Process (SREP).
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Accounting principles
The financial and regulatory figures published by Erste Group are based on IFRS. Eligible capital components are derived from the
balance sheet and income statement which were prepared in accordance with IFRS.
Regulatory scope of consolidation and institutional protection scheme
The consolidated regulatory own funds and the consolidated regulatory capital requirements are calculated based on the scope of
consolidation stipulated in the CRR. The definition pursuant to CRR differs from the scope of consolidation according to IFRS,
which also includes insurance companies and other entities, that are subject to full consolidation.
Erste Group Bank AG is a member of the Haftungsverbund (cross-guarantee system) of the Austrian savings bank sector. As of the
balance sheet date Erste Group Bank AG and Erste Bank der oesterreichischen Sparkassen AG as well as Bausparkasse der öster-
reichischen Sparkassen AG and all Austrian savings banks form this cross-guarantee system. Based on the cross-guarantee contract
these entities are included as subsidiaries in Erste Group´s regulatory scope of consolidation.
Furthermore, Erste Group Bank AG together with the Haftungsverbund entities form an institutional protection scheme (IPS)
according to Art. 113 para 7 CRR. Disclosure requirements for the institutional protection scheme according to Art. 113 para 7 e
CRR are met by the publication of the consolidated financial statements, which cover all entities included in the institutional
protection scheme.
Consolidated own funds
Own funds according to CRR consist of Common Equity Tier 1 (CET1), Additional Tier 1 (AT1) and Tier 2 (T2). In order to deter-
mine the capital ratios, each respective capital component – after application of all regulatory deductions and filters – is considered
in relation to the total risk amount.
The items of own funds as disclosed are also used for internal capital management purposes, except AT1 and T2 capital
instruments. Erste Group fulfilled the capital requirements throughout the reporting period.
Beside the regulatory minimum capital ratios also capital buffers according to ABA and regulations of the Financial Market
Authority (FMA) need to be considered.
In addition to minimum capital ratios and capital buffer requirements, institutions also have to fulfil capital requirements
determined in the Supervisory Review and Evaluation Process (SREP). As a result of the 2024 SREP process performed by the
European Central Bank (ECB) Erste Group applies a Pillar 2 requirement (P2R) of 2.00% as of 31 December 2025 .
Following the SREP 2024, Erste Group is expected to meet a Pillar 2 Guidance (P2G) of 1.0% with CET1, valid as of 1 January 2025
onwards.
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Overview of capital requirements and capital buffers

| Dec 24 | Dec 25
Pillar 1 |  |
Minimum CET1 requirement | 4.50% | 4.50%
Minimum Tier 1 requirement | 6.00% | 6.00%
Minimum own funds requirement | 8.00% | 8.00%
Combined buffer requirement (CBR) | 5.63% | 6.03%
Capital conservation buffer | 2.50% | 2.50%
Countercyclical capital buffer | 0.63% | 0.70%
Systemic risk buffer | 1.00% | 1.08%
O-SII capital buffer | 1.50% | 1.75%
Minimum CET1 requirement (incl. CBR) | 10.13% | 10.53%
Minimum Tier 1 requirement (incl. CBR) | 11.63% | 12.03%
Minimum own funds requirement (incl. CBR) | 13.63% | 14.03%
Pillar 2 | 1.90% | 2.00%
Minimum CET1 requirement | 1.07% | 1.13%
Minimum T1 requirement | 1.43% | 1.50%
Minimum own funds requirement | 1.90% | 2.00%
Total CET1 requirement for Pillar 1 and Pillar 2 | 11.19% | 11.65%
Total Tier 1 requirement for Pillar 1 and Pillar 2 | 13.05% | 13.53%
Total capital requirement for Pillar 1 and Pillar 2 | 15.53% | 16.03%

Capital structure (phased in)

in EUR million | Dec 24 | Dec 25
Common equity tier 1 capital (CET1) |  |
Capital instruments eligible as CET1 | 2,337 | 2,337
Retained earnings | 16,459 | 20,118
Accumulated other comprehensive income (and other reserves) | -691 | -404
Minority interest recognised in CET1 | 7,408 | 8,092
Common equity tier 1 capital (CET1) before regulatory adjustments | 25,513 | 30,143
Own CET1 instruments | -72 | -125
Prudential filter: cash flow hedge reserve | 6 | 12
Prudential filter: Cumulative gains and losses due to changes in own credit risk on fair valued liabilities | 107 | 114
Prudential filter: Fair value gains and losses arising from the institution's own credit risk related to derivative liabilities | -9 | -10
Value adjustments due to the requirements for prudent valuation | -95 | -97
Securitisation which qualify for a RW of 1250%, where the institution opts for the deduction alternative (deduction from CET1) | 0 | -147
Goodwill | -609 | -621
Other intangible assets | -357 | -434
DTA that rely on future profitability and do not arise from temporary differences net of associated tax liabilities | 0 | -1
IRB shortfall of credit risk adjustments to expected losses | -147 | 0
CET1 capital elements or deductions – other | -280 | -282
Common equity tier 1 capital (CET1) | 23,996 | 28,524
Additional tier 1 capital (AT1) |  |
Capital instruments eligible as AT1 | 2,688 | 3,479
Instruments issued by subsidiaries that are given recognition in AT1 | 12 | 11
Additional tier 1 capital (AT1) before regulatory adjustments | 2,700 | 3,490
Own AT1 instruments | -1 | -1
Tier 1 capital = CET1 + AT1 | 26,694 | 32,013
Tier 2 capital (T2) |  |
Capital instruments eligible as T2 | 3,898 | 4,100
Instruments issued by subsidiaries recognised in T2 | 411 | 360
IRB excess of provisions over expected losses eligible | 0 | 127
Tier 2 capital (T2) before regulatory adjustments | 4,309 | 4,587
Own T2 instruments | -60 | -61
Tier 2 capital (T2) | 4,249 | 4,526
Total own funds | 30,943 | 36,539
Capital requirement | 12,579 | 11,799
CET1 capital ratio | 15.3% | 19.3%
Tier 1 capital ratio | 17.0% | 21.7%
Total capital ratio | 19.7% | 24.8%

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The position ‘CET1 capital elements or deduction – other’ includes the development of unaudited risk provisions during the year
(EU No 183/2014) and insufficient coverage for non-performing exposures (NPE Backstop) covering the requirements from both
Art. 36 para 1 (m) CRR in connection with Art. 47(c) CRR and the Addendum to the ECB Guidance to banks on non-performing
loans: supervisory expectations for prudential provisioning of non-performing exposures. Furthermore this position contains
exposures to CIU (Collective Investment Undertakings) with a risk weight of 1,250%.
Risk structure (phased in)

| Dez 24 | Dez 25
in EUR million | Total risk | Capital requirement | Total risk | Capital requirement
Total risk exposure amount | 157,241 | 12,579 | 147,487 | 11,799
Risk weighted assets (credit risk) | 131,492 | 10,519 | 119,889 | 9,591
Standardised approach | 25,518 | 2,041 | 25,418 | 2,033
IRB approach | 105,296 | 8,424 | 91,091 | 7,287
Contribution to the default fund of a CCP | 8 | 1 | 10 | 1
Securitizations | 670 | 54 | 3,370 | 270
Settlement risk | 0 | 0 | 1 | 0
Trading book, foreign FX risk and commodity risk | 6,612 | 529 | 4,585 | 367
Operational risk | 16,651 | 1,332 | 22,277 | 1,782
Exposure for CVA | 383 | 31 | 333 | 27
Other exposure amounts (incl. Basel 1 floor) | 2,103 | 168 | 402 | 32

Following the receipt of the regulatory approval, the IRB approach has been implemented in Banca Comercială Română in the first
quarter of 2025 leading to the release of the previously imposed RWA add-on on Group level, which was part of the position “Other
exposure amounts (including Basel 1 floor).
In the fourth quarter of 2025 an additional RWA add-on in the amount of approximate EUR 400 million due to a temporary non-
compliance with the CRR3 provisions related to the CCF estimates was implemented.
CRR3 implementation effect (incl. credit value adjustment risk - CVA) resulted in RWA decrease of EUR -11.7 billion,
predominantly driven by lower regulatory parameters (Loss given default in Corporates and Credit conversion factors for undrawn
commitments) and multipliers used in the Risk weighted assets calculation (EUR -10.6 billion).
In addition the switch to the standardized measurement approach (SMA approach) resulted in an increase of the operational risk
RWA of EUR 4.5 billion.
34. Credit risk: credit risk review and monitoring
ESG RISK MANAGEMENT
Erste Group integrates ESG factors in its risk management and industry strategy framework. ESG risk related conclusions from the
annual business environment scan are considered together with the Erste Group ESG Factor Heatmap. The ESG Factor Heatmap is
used as a screening instrument to identify certain industry segments (out of the existing sub-industries) that may be exposed to ESG
risk factors and determine those industries which are more vulnerable to ESG risks. Erste Group establishes industry strategies and
lending standards to support the steering of the portfolio under considerations of ESG risks; both are the basis for decisions, which
determine which clients and transactions fit into the group’s portfolio.
Secondly, the Group has established an ESG risk framework for the assessment of material ESG factors, related risks and
appropriateness of the mitigating strategies in the credit and rating processes. In this manner, the Group takes ESG risk criteria into
account when making credit decisions.
For large corporate, commercial real estate and commercial residential real estate transactions, the group conducts a systemic ESG
analysis via an internal digital ESG assessment questionnaire. The questionnaire is a mandatory prerequisite in the loan origination
and monitoring process. By providing a comprehensive ESG risk assessment, Erste Group can determine how certain ESG factors
may have a positive or negative impact on the financial performance of clients. The questionnaire enables the group to identify
clients’ ESG risks or opportunities.
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Particular questions in the questionnaire may also require an in-depth assessment to understand the nature and severity of the ESG
risks to which the client is exposed. The questionnaire forms an integral part of the credit application and is updated at least
annually, allowing Erste Group to understand the client’s business model in the context of carbon transition. To support achieving
the group’s decarbonization targets, additional lending guidance has been introduced for large corporate, depending on their
communicated strategy to align with climate science recommendations.
Furthermore, ESG relevant data is collected for certain types of collateral, as defined in the Group Collateral Management Policy
for real estate collateral valuations, documentation and reporting purposes. Environmental aspects which affect the value of the
collateral have to be included in the real estate valuations, which can lead to a higher or lower valuation result. Moreover, any risks
arising from social (e.g., location and transportation, mass urbanisation – being indicators for easy accessibility for people) and
governance factors (such as improper business practices such as tax fraud or bribery of the financed company being the owner of
the building serving as collateral) have to be considered as well. For commercial real estate assets, the questionnaire additionally
includes an assessment of the building’s environmental footprint, including information on land consumption, space efficiency and
the existence of a sustainable building certificate. Similarly to large corporate lending, the bank has introduced additional lending
guidance for commercial real estate financing, tied to the carbon footprint of the financed asset.
With regards to credit risk measurement and internal models a respective project to define and collect relevant climate risk drivers
for all rating systems has started in 2022 to ensure the explicit consideration of climate risks in future model development
initiatives. ESG factors are considered in the soft facts assessment in the corporate rating models. In case of sovereigns and banks,
the rating is overridden based on the ESG score derived from available sources World Bank / OECD and Bloomberg, respectively.
Moreover, if it is concluded that calculated model rating does not reflect the ESG risk properly, then rating can be overridden
manually based on ESG assessment questionnaire. For the LGD models, climate risk is indirectly reflected via the collateral value.
Additionally, within each new model development, testing of the ESG drivers is obligatory and where it is deemed relevant, the
respective information needs to be integrated via model into ECL measurement.
For the assessment and management of physical risks, Erste Group uses Munich Re’s Location Risk Intelligence. In 2023 the group
has conducted a physical risks materiality assessment together with the University of Graz to identify key hazards and climate
change scenarios relevant for its collateral portfolio. The results of the assessment, highlighting the importance of river flood, fire
weather stress, drought stress, sea level rise and heat stress, is integrated into the collateral management, incorporating an
intermediate climate change scenario of 2-3C by 2100 (Representative Concentration Pathway 4.5 / Shared Socioeconomic Pathway
2, developed by the Intergovernmental Panel on Climate Change) as a reasonable assumption. In case of the existence of very high
physical risks of a location, the collateral value would be negatively affected.
To assess the potential impact of physical risk, the internal stress test incorporated an internally developed physical risk model. The
risk ‘river flood’ was determined to be the most relevant risk for Erste Group applying the climate hazard scores provided by
Munich Re on EGBs collaterals.
Among the industries presented in the table ‘Credit risk exposure by industry and risk category’ below in this chapter, Erste Group
identified, as part of the strategic climate initiative for the Net Zero Banking Alliance, certain carbon-intensive sectors as important
levers for setting interim emission targets for 2030, thereby supporting the migration of ‘Transition Risk’ in Erste Group financed
portfolio. Targets are set for the following sectors: housing mortgages, commercial real estate, electricity production, heat and
steam production, cement production, auto manufacturing, oil and gas upstream, iron and steel.
An internal Climate Risk Stress Test was conducted based on NGFS (Network for Greening the Financial System) scenarios. The
analysis was informed by internal sectoral targets and the results are integrated into the bank’s Risk Materiality Assessment.
METHODS OF CREDIT RISK MANAGEMENT
Credit risk arises from Erste Group’s traditional lending and investment businesses.
Operative credit decisions based on lending parameters defined by credit risk management units in each subsidiary and are
executed by dedicated units with appropriate decision authority locally and by Group Credit Risk Management at the group level.
Credit risk related to retail and corporate loan portfolios is managed at the group and at local entity level with a common interest to
ensure regulatory compliant risk management practices and to provide customers with manageable loan facilities that are within
their financial capacities and supported by underlying profitability.
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INTERNAL RATING SYSTEM
Erste Group has business and risk strategies in place that govern policies for lending and credit approval processes. These policies
are reviewed at a minimum on an annual basis and adjusted if necessary. They cover the entire lending business, considering the
nature, scope and risk level of the transactions and the counterparties involved. Credit approval considers individual information
on the creditworthiness of the customer, the type of credit, collateral, covenant package and other risk mitigation factors involved.
The assessment of credit default risk within Erste Group is based on the customer’s probability of default (PD). For each credit
exposure and lending decision, Erste Group assigns an internal rating, which is a unique measure of the credit default risk. The
internal rating of each customer is updated event-specific, however, at least once a year (annual rating review). Ratings of workout
customers are reviewed with a higher frequency.
The main purpose of the internal ratings is to support the decision-making for lending and for the terms of credit facilities. Internal
ratings also determine the level of credit approval authority within Erste Group and the monitoring procedures for existing
exposures. At a quantitative level, internal ratings influence the level of required risk pricing, loss allowances and, where
applicable, risk-weighted assets under Pillar 1 and 2.
For entities of Erste Group that use the internal ratings-based (IRB) approach, internal ratings are key input for the risk-weighted
assets calculation. They are also used in the group’s assessment of the economic capital requirements according to Pillar 2 and in
other relevant model use areas. For these purposes, a distinct PD value is assigned to each rating grade for its IRB portfolios within
a calibration process that is performed individually for each rating method. PD values reflect a 12-month probability of default
based on long-term average default rates per rating grade. The bank assigns margins of conservatism to the calculated PDs.
Internal ratings consider all available significant information for the assessment of credit default risk. For non-retail borrowers,
internal ratings take into account the financial strength of the counterparty, the possibility of external support, flexibility in
corporate financing, general company information and external credit history information, where available. For retail clients,
internal ratings are based mainly on payment behaviour versus the bank and, where applicable, credit bureau information,
supplemented with information provided by the respective client and general demographic information. Rating ceiling rules on
credit quality are applied based on membership in a group of economically related entities and the country of main economic
activity (applicable to cross-border financing facilities).
Internal specialist teams develop and continuously improve internal rating models and risk parameters in cooperation with risk
managers. All Pillar 1 and 2, as well as IFRS9 models are subject of an annual review of their estimates, considering the inclusion of
most recent data in the estimation of risk parameters, as well as a regular cycle of full model review. Model development follows an
internal group-wide methodological standard and utilises relevant data covering the respective market. In this way, Erste Group
ensures the availability of rating models with the best possible prediction and discriminatory ability across its core regions.
The central Model Validation department is responsible for defining the validation methodologies and standards to be applied to all
credit risk models within Erste Group as well as for conducting the validation activities across the whole Erste Group. All Pillar 1,
material Pillar 2 and IFRS9 models are subject to an annual validation, while for non-material Pillar 2 and IFRS9 models a regular
validation cycle is implemented. Model Validation employs qualitative as well as quantitative validation methods to challenge
conceptual soundness, performance and model use aspects. The validation outcomes are approved by the respective model
committees and, in case of IRB models, shared with the regulatory bodies. In addition to the validation process, the group applies a
regular monitoring process on the performance of IRB models, reflecting developments in new defaults and early delinquencies.
Approvals of all new models, model changes, changes to risk parameters, changes in group-wide methodological standards and
other model-related aspects are following a dual approval process within the Group – corresponding Holding and local model
committee structures reflect joint responsibilities for decisions on Pillar 1 IRB and Pillar 2 credit risk models as well as on
methodologies related to IFRS9 parameters. Responsibilities are assigned depending on model perimeter (group-wide or locally
developed model). In this context, the following committees are established: Strategic Risk Executive Committee and Strategic Risk
Management Committee. Ultimate responsibility for all models used within the Group (at consolidated level) lies with the Group
CRO.
CREDIT RISK CLASSIFICATION
For the disclosure of asset quality Erste Group assigns each customer to one of the following four risk categories:
Low risk. Typically, regional customers with well-established and rather long-standing relationships with Erste Group or large
internationally recognised customers. Very good to satisfactory financial position and low likelihood of financial difficulties relative
to the respective market in which the customers operate. Retail clients having long relationships with the bank, or clients with a
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wide product pool use. No relevant late payments currently or in the most recent 12 months. New business is generally done with
clients in this risk category.
Management attention. Vulnerable non-retail clients, who may have overdue payments or defaults in their credit history or may
encounter debt repayment difficulties in the medium term. Retail clients with possible payment problems in the past triggering
early collection reminders. These clients typically have a good recent payment history.
Substandard. The borrower is vulnerable to short-term negative financial and economic developments and shows an elevated
probability of failure. In some cases, restructuring measures are possible or already in place. Generally, such loans are managed in
specialised risk management departments.
Non-performing. One or more of the default criteria under Article 178 of the CRR are met, which include full repayment unlikely,
interest or principal payments on a material exposure more than 90 days past due, restructuring resulting in a loss to the lender,
realisation of a loan loss, or initiation of bankruptcy proceedings. Erste Group applies the customer view for all customer segments,
including retail clients; if an obligor defaults on one deal, then the customer’s performing transactions are classified as non-
performing as well. All non-performing exposures are also defaulted.
The materiality of 90 days past due credit obligation is applied for on-balance exposure at client level and assessed daily against the
group-wide defined materiality threshold (except the local regulator has defined different thresholds) for the:
_ retail exposure: as an absolute limit on client level of 100 EUR and relative 1% on client level;
_ non-retail exposure: as an absolute limit on client level of 500 EUR and relative 1% on client level.
Based on the calibration of internal PDs (probabilities of default) for regulatory purposes to the default rates published by rating
agencies, the equivalent external customer rating is used for the assignment to risk categories. For the agency ratings, average one-
year default rates resulting from long-term time series are applied.
CREDIT RISK REVIEW AND MONITORING
Retail Risk Management as well as Credit Risk Portfolio in cooperation with Corporate Risk Management conduct periodical
reviews of the loan portfolio for each local entity to ensure an adequate portfolio quality and to monitor the compliance of local
portfolios with the principles and parameters as stipulated by Erste Group’s credit risk policies.
All credit limits and the transactions booked within the limits are reviewed at least once a year. Counterparty credit risk limits are
monitored daily in an internal limit management system with remedial actions taken in case limits are exceeded.
A group-wide standardised early warning monitoring process is implemented to proactively identify negative developments. The
early warning monitoring process for corporate clients is managed at group level by Credit Risk Portfolio and, at subsidiary level, by
the local units responsible for corporate risk management. When early warning signals are identified and validated, the overall
client exposure and creditworthiness is reviewed and adequate risk mitigating actions are taken where deemed necessary. Watch
list review meetings are held on a regular basis to monitor customers with a poor credit standing and to discuss pre-emptive
measures.
For smaller enterprises (micro) and retail customers, the monitoring is done on Group and local level. In Retail, early warning
indicators on client level are identified automatically and clients are segmented in different early warning risk segments. On
portfolio level adverse developments include, for instance, quality deterioration in new business or a decreasing collections
effectiveness and require appropriate countermeasures.
Adverse portfolio developments regarding the non-performing and substandard loans portfolio of Erste Group are monitored,
discussed and reported regularly. In case of further negative developments clients are managed in specialized workout units aiming
to maximise recoveries.
35. Credit risk exposure
Credit risk exposure relates to the sum of the following balance sheet items:
_ cash and cash balances - demand deposits to credit institutions;
_ instruments (derivatives and debt securities) held for trading (HfT);
_ non-trading debt instruments at fair value through profit or loss (FVPL);
_ debt instruments at fair value through other comprehensive income (FVOCI);
_ debt instruments at amortised cost (AC), other than trade and other receivables;
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_ trade and other receivables (for disclosure purposes in the tabular summaries below, any contract assets are also included in this
category);
_ finance lease receivables;
_ debt instruments held for sale in disposal groups;
_ positive fair value of hedge accounting derivatives;
_ off-balance sheet exposures (primarily financial guarantees and undrawn loan commitments).
The credit risk exposure equates the gross carrying amount (or nominal value in the case of off-balance sheet positions) excluding:
_ credit loss allowances for financial assets;
_ credit loss allowances for loan commitments and financial guarantees;
_ provisions for other commitments;
_ any collateral held (including risk transfer to guarantors);
_ netting effects;
_ other credit enhancements;
_ credit risk mitigating transactions.
PORTFOLIO OVERVIEW ON TOTAL CREDIT RISK
236
Between the 31 December 2024 and 31 December 2025, the credit risk exposure increased from EUR 398,766 million to EUR
416,812 million. This is an increase of 4.5% or 18,046 EUR million.
Reconciliation between the gross carrying amount and the carrying amount of the credit risk exposure
components

in EUR million | Credit risk exposure | Credit loss allowances | Adjustments | Net carrying amount
Dec 25 |  |  |  |
Cash and cash balances - demand deposits to credit institutions | 1,563 | -2 | 0 | 1,561
Instruments HfT | 9,155 | 0 | 0 | 9,155
Non-trading debt instruments at FVPL | 3,310 | 0 | 0 | 3,310
Debt securities | 1,786 | 0 | 0 | 1,786
Loans and advances to banks | 0 | 0 | 0 | 0
Loans and advances to customers | 1,524 | 0 | 0 | 1,524
Debt instruments at FVOCI | 9,036 | -5 | 37 | 9,068
Debt securities | 9,036 | -5 | 37 | 9,068
Loans and advances to banks | 0 | 0 | 0 | 0
Loans and advances to customers | 0 | 0 | 0 | 0
Debt instruments at AC | 305,596 | -3,889 | 0 | 301,707
Debt securities | 58,669 | -14 | 0 | 58,655
Loans and advances to banks | 20,830 | -3 | 0 | 20,827
Loans and advances to customers | 226,097 | -3,872 | 0 | 222,225
Trade and other receivables | 2,993 | -47 | 0 | 2,946
Finance lease receivables | 5,369 | -79 | 0 | 5,290
Debt instruments held for sale in disposal groups | 0 | 0 | 0 | 0
Positive fair value of hedge accounting derivatives | 231 | 0 | 0 | 231
Off-balance sheet exposures | 79,557 | -441 | 0 | -
Financial guarantees | 7,766 | -145 | 0 | -
Loan commitments | 54,875 | -290 | 0 | -
Other commitments | 16,916 | -6 | 0 | -
Total | 416,812 | -4,463 | 37 | 333,269
Dec 24 |  |  |  |
Cash and cash balances - demand deposits to credit institutions | 1,196 | -2 | 0 | 1,194
Instruments HfT | 11,322 | 0 | 0 | 11,322
Non-trading debt instruments at FVPL | 2,576 | 0 | 0 | 2,576
Debt securities | 1,468 | 0 | 0 | 1,468
Loans and advances to banks | 0 | 0 | 0 | 0
Loans and advances to customers | 1,108 | 0 | 0 | 1,108
Debt instruments at FVOCI | 9,398 | -13 | 3 | 9,388
Debt securities | 9,398 | -13 | 3 | 9,388
Loans and advances to banks | 0 | 0 | 0 | 0
Loans and advances to customers | 0 | 0 | 0 | 0
Debt instruments at AC | 292,905 | -4,011 | 0 | 288,894
Debt securities | 52,904 | -15 | 0 | 52,889
Loans and advances to banks | 26,978 | -6 | 0 | 26,972
Loans and advances to customers | 213,024 | -3,991 | 0 | 209,034
Trade and other receivables | 2,722 | -44 | 0 | 2,677
Finance lease receivables | 5,331 | -83 | 0 | 5,248
Debt instruments held for sale in disposal groups | 0 | 0 | 0 | 0
Positive fair value of hedge accounting derivatives | 181 | 0 | 0 | 181
Off-balance sheet exposures | 73,137 | -486 | 0 | -
Financial guarantees | 7,431 | -162 | 0 | -
Loan commitments | 50,981 | -312 | 0 | -
Other commitments | 14,725 | -12 | 0 | -
Total | 398,766 | -4,639 | 3 | 321,479

Credit loss allowances comprise impairments for financial assets measured at amortised cost (including finance lease and trade and
other receivables) and at fair value through other comprehensive income (FVOCI), as well as credit loss allowances and provisions
for off-balance sheet exposures. Adjustments refer to the fair value changes of the carrying amount for financial assets at FVOCI.
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B REAKDOWN OF CREDIT RISK EXPOSURE
On the following pages the credit risk exposure is presented according to different segmentation criteria.
Credit risk exposure by industry and risk category

in EUR million | Low risk | Management attention | Substandard | Non- performing | Total
Dec 25 |  |  |  |  |
Natural Resources & Commodities | 9,755 | 2,870 | 808 | 499 | 13,932
Energy | 18,435 | 1,339 | 292 | 102 | 20,169
Construction and building materials | 14,527 | 4,259 | 929 | 462 | 20,177
Automotive | 6,643 | 1,407 | 529 | 195 | 8,774
Cyclical Consumer Products | 6,088 | 1,886 | 471 | 362 | 8,807
Non-Cyclical Consumer Products | 9,475 | 2,039 | 275 | 120 | 11,909
Machinery | 6,763 | 1,310 | 238 | 164 | 8,475
Transportation | 8,519 | 1,572 | 303 | 103 | 10,497
Telecommunications, Media, Technology | 6,838 | 1,114 | 122 | 157 | 8,231
Healthcare & Services | 11,422 | 2,626 | 367 | 139 | 14,554
Hotels & Leisure | 8,214 | 1,872 | 484 | 274 | 10,843
Real Estate | 39,179 | 6,925 | 1,567 | 1,762 | 49,433
Public Sector | 83,700 | 544 | 116 | 34 | 84,393
Financial Institutions | 28,444 | 1,139 | 331 | 50 | 29,965
Private Households | 92,796 | 13,085 | 3,921 | 1,659 | 111,461
Other | 5,153 | 0 | 35 | 3 | 5,191
Total | 355,951 | 43,986 | 10,789 | 6,086 | 416,812
Dec 24 |  |  |  |  |
Natural Resources & Commodities | 9,975 | 2,898 | 701 | 377 | 13,951
Energy | 16,612 | 1,469 | 375 | 44 | 18,499
Construction and building materials | 13,735 | 3,843 | 865 | 417 | 18,860
Automotive | 6,259 | 1,598 | 300 | 420 | 8,576
Cyclical Consumer Products | 5,820 | 1,779 | 523 | 343 | 8,465
Non-Cyclical Consumer Products | 9,121 | 2,049 | 278 | 182 | 11,630
Machinery | 5,764 | 1,291 | 275 | 208 | 7,538
Transportation | 8,362 | 1,615 | 279 | 119 | 10,375
Telecommunications, Media, Technology | 6,622 | 1,113 | 125 | 89 | 7,949
Healthcare & Services | 9,383 | 2,299 | 333 | 175 | 12,190
Hotels & Leisure | 7,477 | 1,913 | 497 | 359 | 10,246
Real Estate | 37,915 | 6,579 | 1,698 | 1,537 | 47,729
Public Sector | 86,294 | 384 | 76 | 76 | 86,830
Financial Institutions | 31,599 | 1,247 | 322 | 24 | 33,192
Private Households | 84,726 | 12,310 | 3,729 | 1,650 | 102,416
Other | 198 | 13 | 105 | 3 | 318
Total | 339,862 | 42,398 | 10,481 | 6,025 | 398,766

With 85%, the low risk exposure has the highest share in total credit risk exposure, while management attention represents 11%.
The substandard exposure contributes 3% and the non-performing category 2%.
From industry and financial instrument point of view, the highest exposure is represented by households in loans and advances to
customers with EUR 98,122 million, representing 24% from total exposure, followed by public sector in debt securities with an
exposure of EUR 43,962 million representing 11% from total and real estate and housing in loans and advances to customers with
an exposure of EUR 43,357 million representing 10% from total.
Credit risk exposure by region and risk category
The geographic analysis of credit risk exposure is based on the country of risk of borrowers and counterparties. It also includes
obligors domiciled in other countries if the economic risk exists in the respective country of risk. Accordingly, the distribution by
regions differs from the composition of the credit risk exposure by geographical segments of Erste Group.
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in EUR million | Low risk | Management attention | Substandard | Non- performing | Total
Dec 25 |  |  |  |  |
Core markets | 293,591 | 41,129 | 9,887 | 5,566 | 350,173
Austria | 127,993 | 14,677 | 4,648 | 3,313 | 150,631
Czechia | 80,145 | 10,755 | 1,516 | 818 | 93,233
Slovakia | 26,347 | 4,856 | 1,968 | 533 | 33,705
Romania | 26,082 | 3,921 | 731 | 413 | 31,147
Hungary | 14,608 | 3,380 | 620 | 140 | 18,749
Croatia | 13,959 | 2,707 | 278 | 291 | 17,235
Serbia | 4,457 | 832 | 125 | 58 | 5,473
Other EU | 39,655 | 1,564 | 519 | 378 | 42,116
Other industrialised countries | 16,431 | 217 | 70 | 9 | 16,727
Emerging markets | 6,274 | 1,076 | 313 | 132 | 7,796
Southeastern Europe/CIS | 4,222 | 694 | 236 | 94 | 5,246
Asia | 1,134 | 52 | 7 | 10 | 1,204
Latin America | 202 | 3 | 0 | 0 | 205
Middle East/Africa | 717 | 326 | 70 | 28 | 1,140
Total | 355,951 | 43,986 | 10,789 | 6,086 | 416,812
Dec 24 |  |  |  |  |
Core markets | 279,809 | 39,033 | 9,676 | 5,524 | 334,043
Austria | 121,943 | 14,194 | 4,465 | 3,413 | 144,016
Czechia | 77,158 | 9,676 | 1,515 | 802 | 89,151
Slovakia | 24,621 | 4,901 | 1,701 | 422 | 31,645
Romania | 24,322 | 3,997 | 876 | 389 | 29,584
Hungary | 15,369 | 2,766 | 562 | 138 | 18,835
Croatia | 12,475 | 2,611 | 469 | 298 | 15,853
Serbia | 3,921 | 889 | 88 | 62 | 4,960
Other EU | 41,585 | 1,686 | 466 | 307 | 44,044
Other industrialised countries | 12,458 | 245 | 49 | 9 | 12,761
Emerging markets | 6,010 | 1,434 | 290 | 185 | 7,918
Southeastern Europe/CIS | 3,410 | 833 | 255 | 104 | 4,602
Asia | 1,913 | 61 | 6 | 10 | 1,990
Latin America | 271 | 1 | 1 | 0 | 273
Middle East/Africa | 416 | 538 | 28 | 70 | 1,053
Total | 339,862 | 42,398 | 10,481 | 6,025 | 398,766

The credit risk exposure increased by EUR 6,616 million, or 5% in Austria and by EUR 9,514 million, or 5% in the CEE core
markets. In the other EU member states (EU 27 excluding core markets), the credit risk exposure decreased by EUR -1,928 million,
or -4%, while in other industrialised countries the increase in exposure amounted to EUR 3,966 million (31%). The emerging
markets registered a decrease of EUR -123 million or -2%. In total, Erste Group’s core markets and the EU accounted for 94% (2024:
95%) of credit risk exposure. At 2% (2024: 2%), the share of emerging markets remained of minor importance.
C redit risk exposure by reporting segment and risk category
The reporting of segments of Erste Group conforms to the internal management and control structure and is based on geographical
segments in order to provide more comprehensive information the segmental reporting also comprises business segments.
239
Credit risk exposure by geographical segment and risk category

in EUR million | Low risk | Management attention | Substandard | Non- performing | Total
Dec 25 |  |  |  |  |
Austria | 178,600 | 17,352 | 5,237 | 3,811 | 205,001
EBOe & Subs. | 49,944 | 4,721 | 1,484 | 1,058 | 57,206
Savings Banks | 69,019 | 11,305 | 3,303 | 2,415 | 86,041
Other Austria | 59,638 | 1,327 | 450 | 338 | 61,753
CEE | 159,741 | 26,622 | 5,542 | 2,275 | 194,181
Czechia | 80,616 | 10,961 | 1,666 | 827 | 94,071
Slovakia | 24,877 | 4,886 | 2,030 | 535 | 32,328
Romania | 25,060 | 3,965 | 734 | 411 | 30,169
Hungary | 10,696 | 3,288 | 604 | 135 | 14,723
Croatia | 14,591 | 2,720 | 391 | 312 | 18,014
Serbia | 3,902 | 801 | 118 | 54 | 4,875
Other | 17,610 | 12 | 9 | 0 | 17,631
Total | 355,951 | 43,986 | 10,789 | 6,086 | 416,812
Dec 24 |  |  |  |  |
Austria | 175,979 | 16,889 | 5,231 | 3,872 | 201,970
EBOe & Subs. | 47,675 | 4,425 | 1,496 | 1,013 | 54,609
Savings Banks | 65,012 | 10,806 | 3,382 | 2,279 | 81,479
Other Austria | 63,292 | 1,657 | 352 | 580 | 65,882
CEE | 147,463 | 25,495 | 5,250 | 2,152 | 180,360
Czechia | 77,312 | 10,155 | 1,540 | 838 | 89,845
Slovakia | 22,493 | 4,918 | 1,745 | 418 | 29,575
Romania | 22,410 | 4,036 | 861 | 389 | 27,696
Hungary | 8,874 | 2,726 | 543 | 132 | 12,276
Croatia | 13,037 | 2,806 | 479 | 315 | 16,637
Serbia | 3,337 | 853 | 82 | 61 | 4,332
Other | 16,420 | 15 | 1 | 0 | 16,436
Total | 339,862 | 42,398 | 10,481 | 6,025 | 398,766

Credit risk exposure by business segment and risk category

in EUR million | Low risk | Management attention | Substandard | Non- performing | Total
Dec 25 |  |  |  |  |
Retail | 75,020 | 14,538 | 4,070 | 1,678 | 95,307
Corporates | 115,291 | 17,658 | 3,040 | 1,968 | 137,957
Group Markets | 23,638 | 393 | 174 | 0 | 24,206
ALM & LCC | 72,811 | 81 | 192 | 24 | 73,108
Savings Banks | 69,019 | 11,305 | 3,303 | 2,415 | 86,041
GCC | 172 | 12 | 9 | 0 | 193
Total | 355,951 | 43,986 | 10,789 | 6,086 | 416,812
Dec 24 |  |  |  |  |
Retail | 67,961 | 13,488 | 3,864 | 1,650 | 86,964
Corporates | 107,666 | 17,253 | 2,911 | 2,088 | 129,919
Group Markets | 28,733 | 746 | 206 | 1 | 29,686
ALM & LCC | 70,368 | 92 | 117 | 6 | 70,583
Savings Banks | 65,012 | 10,806 | 3,382 | 2,279 | 81,479
GCC | 122 | 13 | 1 | 0 | 136
Total | 339,862 | 42,398 | 10,481 | 6,025 | 398,766

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36. Use of collateral and other credit enhancements
Recognition of credit collateral
Collateral Management is integrated in Collateral Management department of Credit Risk Portfolio division. The Group Collateral
Management Policy Part 1 Credit Collateral defines, among other topics, uniform valuation standards for credit collateral across the
entire group. It ensures that the credit risk decision processes are standardised with respect to accepted collateral values.
All collateral types acceptable within the group are contained in the Group Collateral Catalogue. Locally permitted collateral is
defined by the respective bank in accordance with applicable national legal provisions. The valuation and revaluation of collateral
is done according to the principles defined in the Group Collateral Catalogue broken down by collateral type and based on the
internal work instructions in accordance with the individual supervisory requirements. Whether a type of collateral or a specific
collateral asset is accepted for credit risk mitigation is decided by Enterprise-wide Risk Management after determining if the
applicable regulatory requirements are met. Credit underwriting monitors adherence to the standard processes stipulated for
assigning the acceptable collateral assets to the categories available.
Main types of credit collateral
Mostly, the following types of credit collateral are accepted:
_ real estate: residential and commercial real estate;
_ financial collateral: securities, cash deposits and endowment life insurance policies;
_ guarantees: given by sovereigns, public sector entities, financial institutes, companies and private individuals. All guarantors
must have a minimum credit rating, which is reviewed annually;
_ movables: equipment, investment goods, machinery and motor vehicles;
_ claims and rights: trade account receivables, leasehold rights and shares in a company’s capital.
Collateral valuation and management
Collateral valuation is based on current market prices while considering an amount that can be recovered within a reasonable
period. The valuation processes are defined and their IT-supported technical application is performed by Collateral Management at
group level and by authorised staff in each country with the assistance of software applications. The allocated collateral values are
capped by the amount of the secured transaction.
Real estate valuation may only be performed by qualified valuators who are independent of the credit decision process. The
valuation is to be made according to international, European, or national standards and has to follow valuation methods defined by
the bank. Internal guidelines define criteria of qualification and requirements of independence for the selection of valuators. A
valuator may only perform two sequential valuations of the same asset, any further valuation has to result in the rotation of the
valuator. For quality assurance purposes, real estate valuators and real estate valuations are supervised on an ongoing basis.
Real estate valuation includes consideration of energy efficiency of the object, possible negative impact of the real estate asset to the
environment and physical risks that may threaten the object (like e.g. flood or heat stress). Information on energy efficiency and
CO 2 emission of the collateral objects is collected and stored systematically in order to be considered for real estate collateral
valuations and reporting purposes.
The methods and discounts used for valuations are based on empirical data representing past experience of the workout
departments and on the collected data on recoveries from realising collateral. The valuation discounts are adjusted regularly – at
least once a year – to reflect the recoveries under consideration of foreseeable developments (like expected real estate price
changes).
The revaluation of collateral is done periodically and is automated as far as possible. In the case of external data sources, the
appropriate interfaces are used. The maximum periods for the revaluation of individual collateral assets are predefined and
compliance is monitored by risk management using software applications. Apart from periodic revaluations, collateral is assessed
when information becomes available that indicates a decrease in the value of the collateral for exceptional reasons, or when defined
triggers are exceeded. Particularly real estate collateral assets in development, showing problems like significant cost or time
overrun, as well as assets, collateralizing loans with lower credit quality, are monitored or revalued with higher frequencies.
Concentration risks resulting from credit risk mitigation techniques may affect a single customer, but also a portfolio defined by
region, industry, or type of collateral. Erste Group is a retail bank and, due to its customer structure and the markets in which it
operates, it does not have any concentrations with respect to collateral from customers. All guarantee liabilities and loans of a
corporate guarantee provider are taken into consideration in the credit application process in order to prevent possible
concentrations. Guarantees provided by sovereigns, a public sector entity or financial institutions have to lie within the approved
limit of the guarantor. Concerning other areas of a potentially detrimental correlation of risks, the collateral portfolios are analysed
using statistical evaluations for, among other things, regional or industry-specific concentrations within the scope of portfolio
241
monitoring. The response to those risks identified includes, above all, the adjustment of volume targets, setting of corresponding
limits and modification of the staff’s discretionary limits for lending.
Collateral obtained in foreclosure proceedings is made available for sale in an orderly fashion, with the proceeds used to reduce or
repay the outstanding claim. Generally, Erste Group does not occupy repossessed properties for its own business use. The main part
of assets taken onto its own books is commercial land and buildings. In addition, residential real estate properties and transport
vehicles are taken into Erste Group’s possession. As of 31 December 2025, the carrying value of these assets obtained during the
reporting period amounted to EUR 3 million (2024: EUR 7 million).
Treasury collateral
The department Trading Book Risk Management is responsible for treasury collateral. The Group Collateral Management Policy
Part 2 defines, among other things, uniform valuation standards for treasury collateral across the entire group.
Under the framework of treasury collateral, netting agreements (international framework agreements for derivatives of the
International Swap and Derivatives Association (ISDA), Austrian or German framework agreements, framework agreements for
securities lending transactions and repurchase deals) as well as collateral agreements (e.g., ISDA Credit Support Annex) are used
for reducing the credit risk from derivatives.
Netting agreements make it possible to net all amounts due or payable for each individual transaction under a framework
agreement in the case of a credit default, with the result that only the net receivables vis-à-vis the business partner are of relevance
for credit risk. Within the scope of these collateral agreements, the portfolio with the respective counterparty is revalued
periodically, usually daily and in case of insufficient coverage additional collateral is requested. The policy restrictions on collateral
types ensure that collateral received predominantly consists of cash or securities of investment grade quality. In the case of
securities used as collateral, an additional valuation discount (haircut) depending on credit quality and residual maturity is applied.
The following table compares the credit risk exposure broken down by financial instrument to the allocated collateral which
corresponds to the accepted value after internal haircuts capped by the exposure amount.
Synthetic securitisations
Erste Group uses synthetic securitisations for portfolios of loans to SME, corporate customers, commercial real estate loans and
residential mortgages. No transfer of loans and set up of SPVs are involved. Each synthetic securitisation transaction is structured
so that credit losses on the underlying loans are allocated on a waterfall basis first to the excess spread, then to the junior tranche,
mezzanine tranche and finally to the senior tranche. The losses related to the excess spread and the junior tranche, but also to the
senior tranche, are borne by Erste Group. Erste Group receives a guarantee in relation to the volume of the mezzanine tranche. The
guarantee providers are external parties to Erste Group including Supranational and institutional investors (mainly insurance
companies). For accounting purposes, Erste Group treats synthetic securitisations as non-integral guarantees (see chapter Financial
instruments – Material accounting policies, part Impairment of financial instruments). For regulatory capital purposes, the
synthetic securitisations reduce risk weights of the underlying loans which is the primary objective of Erste Group for undertaking
the transactions.
242
Credit risk exposure by financial instrument and collateral

|  |  | Collateralised by |  | IFRS 9 impairment relevant
in EUR million | Total credit risk exposure | Collateral total | Guarantees | Real estate | Other | Credit risk exposure net of collateral | Neither past due nor credit impaired | Past due but not credit impaired | Credit impaired
Dec 25 |  |  |  |  |  |  |  |  |
Cash and cash balances - demand deposits to credit institutions | 1,563 | 781 | 0 | 0 | 781 | 782 | 1,559 | 3 | 0
Instruments HfT | 9,155 | 337 | 337 | 0 | 0 | 8,818 | 0 | 0 | 0
Non-trading debt instruments at FVPL | 3,310 | 1,385 | 925 | 460 | 0 | 1,925 | 0 | 0 | 0
Debt instruments at FVOCI | 9,036 | 345 | 345 | 0 | 0 | 8,692 | 9,030 | 0 | 5
Debt instruments at AC | 305,596 | 157,566 | 11,237 | 121,178 | 25,151 | 148,030 | 292,079 | 7,937 | 5,581
Debt securities | 58,669 | 2,171 | 2,171 | 0 | 0 | 56,498 | 58,660 | 0 | 9
Loans and advances to banks | 20,830 | 19,644 | 2,327 | 0 | 17,317 | 1,186 | 20,830 | 0 | 0
Loans and advances to customers | 226,097 | 135,751 | 6,740 | 121,178 | 7,834 | 90,345 | 212,589 | 7,937 | 5,572
Trade and other receivables | 2,993 | 236 | 234 | 1 | 1 | 2,757 | 1,723 | 1,218 | 53
Finance lease receivables | 5,369 | 3,045 | 69 | 119 | 2,857 | 2,325 | 2,993 | 2,265 | 112
Debt instruments held for sale in disposal groups | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Positive fair value of hedge accounting derivatives | 231 | 0 | 0 | 0 | 0 | 231 | 0 | 0 | 0
Off-balance sheet exposures | 79,557 | 8,853 | 307 | 3,954 | 4,592 | 70,704 | 62,611 | 0 | 182
thereof other commitments | 16,916 | 1,383 | 0 | 294 | 1,089 | 15,533 | 152 | 0 | 0
Total | 416,812 | 172,549 | 13,454 | 125,713 | 33,382 | 244,263 | 369,994 | 11,423 | 5,933
Dec 24 |  |  |  |  |  |  |  |  |
Cash and cash balances - demand deposits to credit institutions | 1,196 | 475 | 0 | 0 | 475 | 721 | 1,195 | 1 | 0
Instruments HfT | 11,322 | 0 | 0 | 0 | 0 | 11,322 | 0 | 0 | 0
Non-trading debt instruments at FVPL | 2,576 | 1,038 | 785 | 253 | 0 | 1,538 | 0 | 0 | 0
Debt instruments at FVOCI | 9,398 | 556 | 556 | 0 | 0 | 8,842 | 9,392 | 0 | 5
Debt instruments at AC | 292,905 | 156,397 | 11,756 | 113,541 | 31,100 | 136,508 | 284,315 | 3,060 | 5,531
Debt securities | 52,904 | 2,304 | 2,304 | 0 | 0 | 50,599 | 52,896 | 0 | 9
Loans and advances to banks | 26,978 | 25,238 | 2,054 | 0 | 23,185 | 1,739 | 26,977 | 0 | 0
Loans and advances to customers | 213,024 | 128,854 | 7,398 | 113,541 | 7,915 | 84,170 | 204,442 | 3,060 | 5,522
Trade and other receivables | 2,722 | 215 | 211 | 1 | 2 | 2,507 | 1,545 | 1,142 | 35
Finance lease receivables | 5,331 | 3,076 | 84 | 158 | 2,834 | 2,255 | 4,957 | 255 | 119
Debt instruments held for sale in disposal groups | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Positive fair value of hedge accounting derivatives | 181 | 0 | 0 | 0 | 0 | 181 | 0 | 0 | 0
Off-balance sheet exposures | 73,137 | 8,705 | 282 | 3,376 | 5,047 | 64,432 | 58,373 | 0 | 228
thereof other commitments | 14,725 | 1,620 | 0 | 244 | 1,376 | 13,105 | 189 | 0 | 0
Total | 398,766 | 170,460 | 13,673 | 117,329 | 39,458 | 228,306 | 359,776 | 4,458 | 5,917

The collateral attributable to exposures that are credit impaired as of 31 December 2025 amounts to EUR 2,950 million (2024: EUR 2,906 million).
The exposure increase of debt instruments at amortized cost that are past due but not credit‑impaired is primarily driven by the Austrian entities, where the logic of the DPD counter has been
standardised.
243
In addition to the amounts in the table, loans and advances to customers at AC with outstanding nominal value of EUR 23,623
million (2024: EUR 4,873 million) are guaranteed through synthetic securitisation transactions as explained above. The
unguaranteed first loss portion which is related to the excess spread and the junior tranches amounts to EUR 3 09 million (2024:
EUR 82 million). The credit protection received relates to the mezzanine tranches which amount to EUR 1,303 million (2024: EUR
274 million).
37. Measurement of expected credit loss
The general principles and standards for credit loss allowances are governed by internal policies in Erste Group. According to IFRS
9, credit loss allowances are calculated for all components of credit risk exposures which are measured at amortised cost (AC) or at
fair value through other comprehensive income. They include debt securities, loans and advances, demand deposits on nostro
accounts with commercial banks as well as finance lease and trade receivables. In addition, credit loss allowances are calculated for
loan commitments and financial guarantees if they meet the applicable IFRS 9 definition s.
CLASSIFICATION INTO STAGES AND DEFINITION OF CREDIT-IMPAIRED FINANCIAL INSTRUMENTS
There are three main stages outlined for expected credit loss (ECL) determination. The stages approach applies to financial
instruments within the scope of the impairment requirements of IFRS 9 and those that are not categorised as purchased or
originated credit impaired financial assets (POCI), which form a category of their own. Depending on the impairment status and
the assessment of the development of credit risk, these financial instruments are assigned to one of the three stages, as described in
the chapter ‘Financial instruments – Material accounting policies’, in the section ‘Impairment of financial instruments’.
SIGNIFICANT INCREASE IN CREDIT RISK DETERMINATION
Assessment of significant increase in credit risk (SICR) of financial instruments as at the reporting date since initial recognition is
one of the key drivers affecting the amount of the ECL recognised based on IFRS 9 requirements. In this respect, across portfolios
and product types, quantitative and qualitative indicators are defined for assessing SICR, including the indicator of 30 days-past-
due (DPD).
Erste Group methodology allows introduction of the cure periods for migrations back to Stage 1 from Stage 2 in addition to those
already established in general credit risk practices (forbearance, watch lists, default). They are rarely applied, only in specific
countries for specific criteria without significant effect on the overall expected credit loss or Stage 2.
Quantitative criteria. Quantitative SICR indicators include adverse changes in lifetime probability of default with significance
being assessed by comparison to the thresholds. The bank has established thresholds for significant increases in credit risk based on
both a percentage (relative) and absolute change in PD compared to initial recognition. SICR occurs for a particular financial
instrument, when both the relative and the absolute thresholds are breached.
The relative measure is calculated as a ratio between current annualised LT PD and annualised LT PD value on initial recognition,
considering remaining maturity of the instrument. Cumulative LT PD comparison can be used for simplification according to Erste
Group methodology; however, such approach is rarely used. The breach means that such ratio has reached or is higher than the
established threshold. These relative thresholds for SICR assessment are established at PD segment l evel or client rating level for
each consolidated entity, as necessary and are subject to initial and on-going validation.
The relative thresholds are kept stable as one of the most significant estimates in ECL measurement. They are re-estimated only in
cases of significant changes in PD models or when required by internal validation findings. I n 2025, thresholds were recalibrated in:
_ Czechia, in case of local private individual models, resulting in an ECL increase of EUR 7.5 million;
_ Slovakia, for local micro model used for clients with single‑entry bookkeeping, with no material impact on ECL;
_ Hungary, for local private and corporate models, also without material impact on ECL (combined with the PD review for these
two models, the total impact was approximately EUR 360 thousand; and
_ Serbia, in case of local models, resulting in ECL decrease of approx. EUR 0.4 million.
244
Relative thresholds for SICR assessment by Erste Group main entities

| Dec 24 | Dec 25
Threshold interval (x times) | Min | Max | Min | Weighted average | Max
Austria | 1.02 | 2.37 | 1.02 | 1.60 | 2.37
EBOe & Subs. | 1.02 | 2.37 | 1.02 | 1.53 | 2.37
Savings Banks | 1.02 | 2.37 | 1.02 | 1.65 | 2.37
Holding | 1.02 | 2.37 | 1.02 | 1.62 | 2.37
CEE | 1.00 | 4.08 | 1.01 | 2.38 | 4.90
Czechia | 1.01 | 3.59 | 1.01 | 2.24 | 4.83
Slovakia | 1.13 | 4.08 | 1.13 | 2.89 | 4.08
Romania | 1.06 | 3.37 | 1.06 | 2.56 | 3.37
Hungary | 1.13 | 3.21 | 1.01 | 2.12 | 4.90
Croatia | 1.13 | 3.13 | 1.13 | 2.14 | 3.13
Serbia | 1.00 | 2.72 | 1.01 | 2.14 | 3.00
Total | 1.00 | 4.08 | 1.01 | 1.88 | 4.90

The table shows only relative thresholds applied by main Erste Group entities. The thresholds applied by their subsidiaries can
deviate from those shown in the table.
Thresholds might seem to show high dispersion, but they are driven mainly by regional and rating diversity. In general, the
maximal thresholds are applied in case of clients with higher credit quality and minimal in case of clients with lower credit quality.
The thresholds’ review performed in 2025 for selected portfolios resulted in more pronounced increases, which in some cases
exceeded a fourfold level. However, these increases are concentrated within a narrow part of the portfolio comprising clients with
the better assigned ratings. The observed increases in thresholds primarily reflect changes in PD models or adjustments to portfolio
segmentation, such as the split of a single model into secured and unsecured components. Given that, within Erste Group, PD
curves assigned to individual deals at initial recognition are not recalibrated over time, such model or segmentation changes could
otherwise result in unjustified transfers of exposures to Stage 2 in cases where credit quality, as reflected by the rating, remains
strong and where the Stage 2.
The exposure weighted average threshold at Group level remains below two.
The absolute threshold refers to difference of LT PD on initial recognition and current LT PD (annualized or cumulative values). It
is set to a maximum of 50 bps and serves as a backstop for migrations between the best ratings (LT PDs considered for remaining
maturity). In such cases, relative thresholds may be breached, however overall LT PD is very low and therefore SICR is not
triggered.
There are certain portfolios where the SICR quantitative criteria are assessed based on the ratings rather than PDs. Predefined
rating notches’ downgrade leads to SICR recognition. These rules are applied primarily to leasing and factoring business
receivables.
Qualitative criteria. Qualitative SICR indicators include forbearance-type flags (identification of regulatory forbearance), work-
out transfer flags (when the account starts being monitored by the work-out department), information from the early-warning
system and fraud indicators. The assignment of some of the qualitative indicators inherently relies on experienced credit risk
judgment being exercised adequately and in a timely manner. The related group-wide and entity-level credit risk controlling
policies and procedures (adapted as necessary in the light of transition to IFRS 9) ensure the necessary governance framework.
These indicators are used internally for identification of insolvency or increased probability that a borrower will enter bankruptcy
and there is increased risk of default in the foreseeable future.
Besides the qualitative indicators defined on a client level, the assessment of a significant increase in credit risk is performed on a
portfolio level if the increase in credit risk on individual instruments or at a client level is available only with a certain time lag or is
observable exclusively on a portfolio level.
Examples are Stage 2 overrides for parts of Swiss franc retail portfolio or in case of high LTV loans resulting from a specific law in
Romania (clients are allowed to give up on real estate collateral against waiver of principal).
Erste Group has introduced additional portfolio level SICR assessment criteria stemming from multiple geopolitical conflicts
(implemented with the start of the war in Ukraine in 2022) and related macroeconomic impacts. For more details refer to
‘Collective assessment’ in the next chapter.
245
Backstop. A backstop is applied and the financial instruments are considered to have experienced a SICR if the borrower is more
than 30 days past due on contractual payments. As observed during validation, this does not represent a major trigger for Stage 2
classification.
Low credit risk exemption. The ‘Low credit risk exemption’ allowed by IFRS 9 for ‘Investment grade’ assets or other assets
deemed ‘Low risk’ (and resulting in 12 months expected credit losses being calculated irrespective of SICR quantitative measures)
has been implemented with limitations in Erste Group. Thus, the potential activation of this exemption is limited to particular
types of debt instruments and counterparty categories and only if supported by sufficient ‘Low risk’ evidence. On this basis, the
‘Low risk exemption’ is applied in special cases to debt security exposures and only exceptionally to loans.
As of 31 December 2025, low credit risk exemption is applied only to debt securities in the Czech subsidiary (Česká spořitelna) and
sovereign exposures in the Romanian subsidiary (Banca Comercială Română). In Česká spořitelna, the corresponding exposure
amounted to EUR 18 billion (2024: EUR 17 billion) with PDs interval of 0.004%-0.25%. In Banca Comercială Română, the respective
exposure amounted to EUR 8 billion (2024: EUR 8 billion) with PD below 0.1%.
MEASURING ECL – EXPLANATION OF INPUTS AND MEASUREMENT
Credit loss allowances are calculated individually or collectively.
The individual calculation approach is applied in case of exposures to significant defaulted customers in Stage 3 or POCI. It consists
in the individual assessment of the difference between the gross carrying amount and the present value of the expected cash flows,
which are estimated by workout or risk managers. The discounting of the cash flows is based on the effective interest rate (POCI:
credit-adjusted effective interest rate). However, the discount rate for financial guarantees shall reflect the current market
assessment of the time value of money and the risks that are specific to the cash flows which in Erste Group’s implementation
means using a risk-free rate as a proxy.
A defaulted customer is classified as individually significant if the total on- and off-balance exposure exceeds a predefined
materiality limit. Otherwise, the customer is considered insignificant and a rule-based (collective) approach is used for the
calculation of the related credit loss allowance as the product of gross carrying amount and LGD, where the LGD depends on
characteristics such as time in default or the stage of the workout process.
For exposures to non-defaulted customers (i.e., in Stage 1 and Stage 2), collective allowances are calculated according to a rule-
based approach irrespective of the significance of the customer. The calculation of collective allowances requires grouping the
related exposures into homogenous clusters based on shared risk characteristics. The grouping criteria may differ based on the
customer segment (retail, corporate) and include product type, collateral type, repayment type, loan to value band and credit rating
band.
The calculation of credit loss allowances is done monthly on a single exposure level and in the contractual currency of the
exposure. To compute the collective credit loss allowance, Erste Group applies an expected credit loss (ECL) model based on a
three-stage approach that leads to either a 12-month ECL or to a lifetime ECL. ECL is the discounted product of exposure at default
(EAD) that also includes a credit conversion factor in the case of off-balance sheet exposures, probability of default (PD) and loss
given default (LGD), defined as follows:
_ PD represents the likelihood of a borrower defaulting on its financial obligation (per definition of default below), either over next
12 months (1Y PD) for Stage 1 exposures or over the remaining lifetime (LT PD) for Stage 2 and 3 and POCI exposures.
_ EAD is based on the amounts Erste Group expects to be owed at the time of default, over next 12 months (1Y EAD) for Stage 1
exposures, or over the remaining lifetime (LT EAD) for Stage 2 and 3 and POCI exposures. The estimation includes current
balance, expected repayments and expected drawings up to the current contractual limit by the time of default.
_ LGD represents the Erste Group’s expectation of the extent of loss on a defaulted exposure. LGD varies by type of counterparty,
type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit
exposure at the time of default (EAD).
LIFE-TIME PARAMETERS
The LT PD is developed through observation of historical defaults over an available history. The calculated LT PDs are
extrapolated, e.g., via matrix multiplication, to ensure that the final lifetime PD covers the lifetime of the loans from initial
recognition. It is assumed to be the same across all assets in the same portfolio, rating band and the country of risk which is an
additional relevant PD characteristic considered via forward looking information in case of local specialized lending portfolio in
Austria and central models for Group (Large) Corporate.
246
The 1Y and LT EADs are determined based on the expected payment profiles, which vary by product type. The LT EAD calculation
utilises repayment schedule or repayment type (annuity, linear, bullet). In the case of undrawn commitments, credit conversion
factor is estimated for reflecting the expected credit exposure in the EAD.
The LGD is estimated as a lifetime curve for any point in time, based on historical loss observations.
The risk parameters used in the ECL calculation consider all information available at the reporting date, including past events,
current conditions, and forecasts of future economic development. In general, the risk parameters applied in the calculation of
collective allowances differ from the risk parameters used for capital requirement purposes, which are determined on a through-
the-cycle basis if the characteristics of the respective portfolio in combination with IFRS requirements necessitate such divergence.
Nevertheless, the approach to modelling and selecting the estimation sample for the risk parameters remains harmonized across
the Group.
Within Erste Group, risk parameters are reviewed regularly, at least once per year. The only exception is the forward‑looking
information (FLI) review, which is typically performed at least semi‑annually.
In 2025, the following parameter reviews (excluding FLI) had a significant impact on expected credit loss (ECL):
September
_ Romania – LGD re-calibration for local corporate model resulted in an ECL decrease of EUR 40 million.
October
_ Austria – LGD review for corporate models resulted in an ECL decrease of EUR 49 million;
_ Austria – LGD review for retail models resulted in an ECL increase of EUR 21 million;
_ Croatia – PD review for local models, driven by the merger of clients of Erste Bank Croatia and Erste Credit Cards into a single
estimation sample, resulted ECL increase of EUR 23 million.
December
_ Romania – LGD re-calibration for non-performing secured private individuals resulted in an ECL decrease of EUR 27 million.
247
38. Credit risk exposure by IFRS 9 Stage and ECL
Credit risk exposure according to IFRS 9 by region

in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Credit risk exposure (AC and FVOCI) | Not subject to IFRS 9 impairment | Total
Dec 25 |  |  |  |  |  |  |
Core markets | 291,794 | 30,575 | 5,274 | 338 | 327,981 | 22,193 | 350,173
Austria | 122,657 | 20,168 | 3,262 | 56 | 146,143 | 4,489 | 150,631
Czechia | 83,288 | 4,218 | 747 | 60 | 88,313 | 4,920 | 93,233
Slovakia | 27,580 | 1,692 | 446 | 115 | 29,833 | 3,872 | 33,705
Romania | 26,872 | 1,905 | 381 | 55 | 29,213 | 1,934 | 31,147
Hungary | 12,516 | 951 | 111 | 28 | 13,607 | 5,142 | 18,749
Croatia | 14,590 | 1,343 | 277 | 13 | 16,224 | 1,011 | 17,235
Serbia | 4,290 | 300 | 49 | 10 | 4,649 | 825 | 5,473
Other EU | 35,681 | 1,555 | 362 | 7 | 37,605 | 4,511 | 42,116
Other industrialised countries | 14,407 | 371 | 9 | 0 | 14,787 | 1,940 | 16,727
Emerging markets | 6,114 | 734 | 126 | 3 | 6,977 | 819 | 7,796
Southeastern Europe/CIS | 4,010 | 604 | 89 | 2 | 4,705 | 541 | 5,246
Asia | 942 | 51 | 10 | 0 | 1,003 | 201 | 1,204
Latin America | 196 | 5 | 0 | 0 | 202 | 3 | 205
Middle East/Africa | 966 | 73 | 26 | 1 | 1,066 | 74 | 1,140
Total | 347,996 | 33,234 | 5,771 | 348 | 387,350 | 29,462 | 416,812
Dec 24 |  |  |  |  |  |  |
Core markets | 270,676 | 37,031 | 5,287 | 364 | 313,359 | 20,685 | 334,043
Austria | 115,203 | 21,809 | 3,368 | 61 | 140,441 | 3,575 | 144,016
Czechia | 76,672 | 7,046 | 724 | 74 | 84,517 | 4,634 | 89,151
Slovakia | 25,437 | 2,333 | 374 | 128 | 28,272 | 3,372 | 31,645
Romania | 24,730 | 2,598 | 379 | 33 | 27,740 | 1,844 | 29,584
Hungary | 11,569 | 1,299 | 114 | 32 | 13,014 | 5,821 | 18,835
Croatia | 13,212 | 1,592 | 285 | 16 | 15,105 | 748 | 15,853
Serbia | 3,853 | 355 | 43 | 20 | 4,270 | 691 | 4,960
Other EU | 37,588 | 1,927 | 272 | 2 | 39,789 | 4,254 | 44,044
Other industrialised countries | 9,627 | 563 | 9 | 0 | 10,199 | 2,562 | 12,761
Emerging markets | 5,758 | 866 | 164 | 17 | 6,805 | 1,114 | 7,918
Southeastern Europe/CIS | 3,361 | 635 | 98 | 3 | 4,097 | 505 | 4,602
Asia | 1,330 | 69 | 10 | 0 | 1,410 | 581 | 1,990
Latin America | 268 | 5 | 0 | 0 | 273 | 0 | 273
Middle East/Africa | 798 | 157 | 56 | 15 | 1,025 | 28 | 1,053
Total | 323,649 | 40,387 | 5,732 | 383 | 370,152 | 28,615 | 398,766

Stage 1 and Stage 2 comprise not impaired credit risks while Stage 3 includes impaired credit risks. POCI (purchased or originated
credit impaired) consists of credit risks already impaired when purchased or originated. The exposure not subject to IFRS 9
impairment is measured at fair value.
The defaulted part of POCI amounted to EUR 161 million (2024: EUR 186 million), the non-defaulted part to EUR 187 million
(2024: EUR 197 million).
248
Credit risk exposure according to IFRS 9 by geographical segment

| Credit risk exposure | Credit loss allowances | NPE coverage ratio
in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Not subject to IFRS 9 impairment | Stage 1 | Stage 2 | Stage 3 | POCI | Stage 2 | Stage 3 | POCI
Dec 25 |  |  |  |  |  |  |  |  |  |  |  |
Austria | 163,297 | 22,904 | 3,737 | 67 | 14,997 | -196 | -701 | -1,195 | 0 | 3.1% | 32.0% | 0.0%
EBOe & Subs. | 49,186 | 6,132 | 1,036 | 17 | 835 | -47 | -188 | -329 | 0 | 3.1% | 31.8% | 0.0%
Savings Banks | 66,307 | 14,250 | 2,381 | 45 | 3,059 | -112 | -458 | -803 | 0 | 3.2% | 33.7% | 0.1%
Other Austria | 47,803 | 2,522 | 320 | 4 | 11,104 | -37 | -55 | -62 | 0 | 2.2% | 19.5% | 0.0%
CEE | 167,141 | 10,325 | 2,034 | 281 | 14,400 | -357 | -677 | -1,270 | -59 | 6.6% | 62.5% | 20.9%
Czechia | 84,587 | 4,222 | 750 | 66 | 4,445 | -107 | -275 | -475 | -20 | 6.5% | 63.4% | 29.6%
Slovakia | 26,290 | 1,670 | 451 | 113 | 3,804 | -47 | -95 | -226 | -17 | 5.7% | 50.2% | 15.1%
Romania | 26,197 | 1,897 | 382 | 51 | 1,642 | -115 | -168 | -284 | -3 | 8.9% | 74.4% | 6.2%
Hungary | 10,775 | 845 | 106 | 28 | 2,969 | -25 | -47 | -72 | -9 | 5.6% | 68.2% | 31.4%
Croatia | 15,505 | 1,427 | 298 | 14 | 771 | -50 | -76 | -181 | -9 | 5.3% | 60.8% | 66.4%
Serbia | 3,786 | 265 | 45 | 10 | 768 | -14 | -14 | -30 | -1 | 5.5% | 66.9% | 10.8%
Other | 17,559 | 5 | 0 | 0 | 66 | -2 | -1 | 0 | 0 | 17.8% | 0.0% | 0.0%
Total | 347,996 | 33,234 | 5,771 | 348 | 29,462 | -555 | -1,379 | -2,465 | -59 | 4.1% | 42.7% | 16.9%
Dec 24 |  |  |  |  |  |  |  |  |  |  |  |
Austria | 156,474 | 25,257 | 3,787 | 64 | 16,387 | -184 | -753 | -1,237 | 0 | 3.0% | 32.7% | 0.1%
EBOe & Subs. | 46,276 | 6,697 | 996 | 19 | 620 | -43 | -180 | -323 | 0 | 2.7% | 32.4% | 0.0%
Savings Banks | 61,449 | 15,360 | 2,244 | 45 | 2,381 | -99 | -498 | -792 | 0 | 3.2% | 35.3% | 0.2%
Other Austria | 48,749 | 3,200 | 547 | 0 | 13,386 | -42 | -76 | -122 | 0 | 2.4% | 22.3% | 0.0%
CEE | 150,805 | 15,127 | 1,944 | 319 | 12,164 | -328 | -795 | -1,248 | -78 | 5.3% | 64.2% | 24.4%
Czechia | 77,490 | 7,215 | 740 | 94 | 4,305 | -97 | -286 | -458 | -26 | 4.0% | 61.8% | 27.3%
Slovakia | 23,396 | 2,295 | 374 | 125 | 3,385 | -37 | -124 | -190 | -17 | 5.4% | 50.8% | 14.0%
Romania | 23,631 | 2,466 | 379 | 33 | 1,187 | -121 | -243 | -314 | -6 | 9.9% | 82.8% | 18.2%
Hungary | 8,986 | 1,129 | 107 | 32 | 2,021 | -24 | -50 | -73 | -9 | 4.4% | 68.3% | 28.4%
Croatia | 14,026 | 1,706 | 301 | 16 | 587 | -40 | -79 | -182 | -11 | 4.6% | 60.4% | 67.0%
Serbia | 3,276 | 316 | 41 | 20 | 680 | -11 | -13 | -30 | -9 | 4.1% | 73.3% | 44.5%
Other | 16,370 | 3 | 0 | 0 | 63 | -2 | -2 | 0 | 0 | 74.5% | 97.7% | 0.0%
Total | 323,649 | 40,387 | 5,732 | 383 | 28,615 | -514 | -1,550 | -2,485 | -78 | 3.8% | 43.4% | 20.3%

Credit risk exposure according to IFRS 9 treatment by business segment

| Credit risk exposure | Credit loss allowances | NPE coverage ratio
in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Not subject to IFRS 9 impairment | Stage 1 | Stage 2 | Stage 3 | POCI | Stage 2 | Stage 3 | POCI
Dec 25 |  |  |  |  |  |  |  |  |  |  |  |
Retail | 83,843 | 8,018 | 1,631 | 91 | 1,724 | -175 | -458 | -903 | -15 | 5.7% | 55.4% | 16.3%
Corporates | 111,135 | 10,609 | 1,735 | 211 | 14,266 | -246 | -443 | -748 | -44 | 4.2% | 43.1% | 20.8%
Group Markets | 13,732 | 315 | 0 | 0 | 10,159 | -9 | -15 | 0 | 0 | 4.8% | 16.2% | 0.0%
ALM & LCC | 72,856 | 37 | 24 | 0 | 191 | -13 | -4 | -10 | 0 | 11.4% | 43.5% | 77.8%
Savings Banks | 66,307 | 14,250 | 2,381 | 45 | 3,059 | -112 | -458 | -803 | 0 | 3.2% | 33.7% | 0.1%
GCC | 124 | 5 | 0 | 0 | 64 | -1 | -1 | 0 | 0 | 17.8% | 0.0% | 0.0%
Total | 347,996 | 33,234 | 5,771 | 348 | 29,462 | -555 | -1,379 | -2,465 | -59 | 4.1% | 42.7% | 16.9%
Dec 24 |  |  |  |  |  |  |  |  |  |  |  |
Retail | 74,104 | 9,906 | 1,598 | 103 | 1,253 | -159 | -459 | -917 | -20 | 4.6% | 57.4% | 19.9%
Corporates | 100,583 | 14,740 | 1,883 | 235 | 12,477 | -229 | -579 | -768 | -57 | 3.9% | 40.8% | 24.4%
Group Markets | 17,139 | 292 | 1 | 0 | 12,253 | -13 | -9 | 0 | 0 | 3.0% | 0.4% | 0.0%
ALM & LCC | 70,300 | 86 | 6 | 0 | 190 | -14 | -4 | -7 | 0 | 4.7% | 114.3% | 0.0%
Savings Banks | 61,449 | 15,360 | 2,244 | 45 | 2,381 | -99 | -498 | -792 | 0 | 3.2% | 35.3% | 0.2%
GCC | 73 | 3 | 0 | 0 | 59 | 0 | -2 | 0 | 0 | 74.5% | 97.7% | 0.0%
Total | 323,649 | 40,387 | 5,732 | 383 | 28,615 | -514 | -1,550 | -2,485 | -78 | 3.8% | 43.4% | 20.3%

249
39. Development of credit loss allowances
The following tables give an overview over the development of credit loss allowances per balance sheet line item.
In column ‘Additions’ increases of CLA due to the initial recognition of financial instruments during the current reporting period
are disclosed. Releases of CLA following the derecognition of the related financial instruments are reported in column
‘Derecognitions’.
In column ‘Transfers between stages’ CLA net changes due to changes in credit risk that triggered re-assignments of the related
financial instruments from Stage 1 (at 1 January 2025 or initial recognition date) to Stages 2 or 3 at 31 December 2025 or vice-versa
are reported. The effects of transfers from Stage 1 to Stages 2 or 3 on the related CLAs are adverse and presented in lines
attributable to Stages 2 or 3. The effects of transfers from Stages 2 or 3 to Stage 1 on the related CLAs are favourable and presented
in line ‘Stage 1’. The P&L-neutral effect from cross-stage transferring of the related CLA amounts recognised prior to stage re-
assignments are presented above in column ‘Other changes in credit risk (net)’.
Any other changes in credit risk which do not trigger a transfer between Stage 1 and Stage 2 or 3 or vice-versa are disclosed in
column ‘Other changes in credit risk (net)’.
FINANCIAL INSTRUMENTS HELD AT AMORTISED COST
Movement in credit loss allowances – debt securities

in EUR million | As of | Additions | Derecognitions | Transfers between stages | Other changes in credit risk (net) | Other | As of
| Jan 25 |  |  |  |  |  | Dec 25
Stage 1 | -9 | -2 | 2 | 1 | -1 | 0 | -8
Stage 2 | -2 | 0 | 1 | -1 | 1 | 0 | -2
Stage 3 | -4 | 0 | 0 | 0 | 0 | 0 | -4
Total | -15 | -2 | 3 | 0 | 0 | 0 | -14
| Jan 24 |  |  |  |  |  | Dec 24
Stage 1 | -10 | -2 | 2 | 0 | 0 | 0 | -9
Stage 2 | -3 | 0 | 0 | -1 | 1 | 0 | -2
Stage 3 | -4 | 0 | 0 | 0 | 1 | 0 | -4
Total | -17 | -2 | 2 | -1 | 2 | 0 | -15

The year-end total GCAs of AC debt securities that were initially recognised (purchased) during the year 2025 and not fully
derecognised by 31 December 2025 amounts to EUR 12,315 million ( 2024 : EUR 14,623 million.) The GCA of AC debt securities that
were held at 1 January 2025 and derecognised during the year 2025 amounts to EUR 6,403 million (2024: EUR 5,212 million).
Movement in credit loss allowances – loans and advances to banks

in EUR million | As of | Additions | Derecognitions | Transfers between stages | Other changes in credit risk (net) | Other | As of
| Jan 25 |  |  |  |  |  | Dec 25
Stage 1 | -6 | -7 | 6 | 0 | 4 | 0 | -3
Stage 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Stage 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total | -6 | -7 | 6 | 0 | 4 | 0 | -3
| Jan 24 |  |  |  |  |  | Dec 24
Stage 1 | -8 | -13 | 9 | 0 | 6 | 0 | -6
Stage 2 | -3 | 0 | 3 | 0 | 0 | 0 | 0
Stage 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total | -12 | -13 | 13 | 0 | 7 | 0 | -6

The year-end total GCA of AC loans and advances to banks that were initially recognised during the year 2025 and not fully de-
recognised by 31 December 2025 amounts to EUR 18,396 million (2024: EUR 25,420 million). The GCA of AC loans and advances
to banks that were held as of 1 January 2025 and fully derecognised during the year 2025 amounts to EUR 25,424 million (2024:
18,238 million).
250
Movement in credit loss allowances – loans and advances to customers

in EUR million | As of | Additions | Derecog- nitions | Transfers between stages | Other changes in credit risk (net) | Write-offs | Other | As of
| Jan 25 |  |  |  |  |  |  | Dec 25
Stage 1 | -366 | -295 | 99 | 580 | -415 | 3 | -8 | -401
General governments | -5 | -3 | 3 | 3 | -3 | 0 | 1 | -4
Other financial corporations | -12 | -19 | 14 | 12 | -7 | 0 | 0 | -11
Non-financial corporations | -204 | -165 | 57 | 261 | -180 | 3 | -4 | -231
Households | -145 | -108 | 25 | 304 | -225 | 0 | -6 | -155
Stage 2 | -1,263 | -126 | 242 | -678 | 726 | 1 | -15 | -1,113
General governments | -16 | 0 | 1 | -3 | 0 | 0 | 6 | -12
Other financial corporations | -17 | -6 | 37 | -48 | 20 | 0 | -1 | -15
Non-financial corporations | -770 | -102 | 149 | -292 | 386 | 0 | -17 | -645
Households | -460 | -17 | 56 | -336 | 320 | 1 | -4 | -441
Stage 3 | -2,289 | -57 | 385 | -91 | -907 | 644 | 12 | -2,304
General governments | -4 | 0 | 0 | 0 | 3 | 0 | 0 | -1
Other financial corporations | -28 | -1 | 13 | 0 | -14 | 1 | -1 | -30
Non-financial corporations | -1,247 | -34 | 185 | -47 | -643 | 473 | 18 | -1,296
Households | -1,009 | -22 | 187 | -44 | -253 | 170 | -6 | -977
POCI | -73 | 0 | 6 | 0 | -7 | 22 | -3 | -54
General governments | 0 | 0 | 0 | 0 | -1 | 0 | 0 | -1
Other financial corporations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Non-financial corporations | -54 | 0 | 5 | 0 | -5 | 16 | -1 | -39
Households | -19 | 0 | 1 | 0 | -1 | 6 | -2 | -14
Total | -3,991 | -478 | 733 | -190 | -602 | 670 | -14 | -3,872
| Jan 24 |  |  |  |  |  |  | Dec 24
Stage 1 | -357 | -301 | 83 | 680 | -467 | 0 | -5 | -366
General governments | -5 | -2 | 2 | 3 | -3 | 0 | 0 | -5
Other financial corporations | -9 | -12 | 8 | 20 | -16 | 0 | -1 | -12
Non-financial corporations | -188 | -170 | 48 | 292 | -188 | 0 | 2 | -204
Households | -155 | -117 | 25 | 366 | -259 | 0 | -5 | -145
Stage 2 | -1,401 | -252 | 289 | -763 | 861 | 0 | 3 | -1,263
General governments | -19 | 0 | 0 | -8 | 10 | 0 | 0 | -16
Other financial corporations | -10 | -21 | 4 | -15 | 25 | 0 | 0 | -17
Non-financial corporations | -835 | -206 | 224 | -375 | 411 | 0 | 11 | -770
Households | -536 | -25 | 60 | -365 | 416 | 0 | -9 | -460
Stage 3 | -2,072 | -140 | 400 | -129 | -746 | 371 | 28 | -2,289
General governments | -5 | 0 | 0 | 0 | 2 | 0 | 0 | -4
Other financial corporations | -28 | -1 | 2 | -8 | 3 | 1 | 3 | -28
Non-financial corporations | -1,082 | -113 | 255 | -84 | -503 | 241 | 38 | -1,247
Households | -957 | -25 | 143 | -37 | -248 | 128 | -13 | -1,009
POCI | -85 | 0 | 8 | 0 | -7 | 12 | 0 | -73
General governments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Other financial corporations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Non-financial corporations | -60 | 0 | 3 | 0 | 0 | 2 | 2 | -54
Households | -25 | 0 | 5 | 0 | -7 | 10 | -2 | -19
Total | -3,915 | -693 | 779 | -212 | -359 | 383 | 26 | -3,991

CLAs recognised against drawings from non-revolving loan commitments are deemed as additions for the purpose of presenting
current period’s movement in CLA. Therefore, additions in Stages 2 and 3 reflect transfers from Stage 1 having occurred between
commitment and drawing dates of related credit facilities. They also reflect deals for which the CLA initial recognition in
accounting occurred after those deals having been already assigned to Stage 2 as a result of applying the SICR collective assessment
overlays further described in Note 40 Scenarios used in forward looking information and Crises Effects.
The column ‘Other changes in credit risk (net)’ also captures the passage-of-time adverse effect (‘unwinding correction’) over the
lifetime expected cash shortfalls of AC loans and advances to customers that were assigned to Stage 3 for any period throughout the
year, as well as of any POCI loans and advances to customers. This adverse effect amounted to EUR 119 million (2024: EUR 122
million) cumulatively for the year 2025, which also reflects the unrecognised interest income out of the related AC loans and
advances to customers throughout the year.
251
The use of CLA triggered by full or partial write-offs of AC loans and advances to customers is reported in column ‘Write-offs’.
One significant driver of the CLA movements for the year has been the transfer of the related instruments across different
impairment stages. The year-end GCA of AC loans and advances to customers that were assigned at 31 December 2025 to a
different stage compared to 1 January 2025 (or to the initial recognition date, if originated during the year) are summarized below:

| Transfers between Stage 1 and Stage 2 | Transfers between Stage 2 and Stage 3 | Transfers between Stage 1 and Stage 3 | POCI
in EUR million | To Stage 2 from Stage 1 | To Stage 1 from Stage 2 | To Stage 3 from Stage 2 | To Stage 2 from Stage 3 | To Stage 3 from Stage 1 | To Stage 1 from Stage 3 | To Defaulted from Non- Defaulted | To Non- Defaulted from Defaulted
Dez 25 |  |  |  |  |  |  |  |
General governments | 70 | 258 | 20 | 0 | 0 | 0 | 0 | 0
Other financial corporations | 228 | 285 | 25 | 0 | 1 | 0 | 0 | 0
Non-financial corporations | 5,813 | 6,113 | 903 | 110 | 422 | 17 | 2 | 11
Households | 4,067 | 3,787 | 432 | 159 | 311 | 41 | 2 | 8
Total | 10,179 | 10,443 | 1,380 | 268 | 735 | 58 | 3 | 19
Dez 24 |  |  |  |  |  |  |  |
General governments | 415 | 73 | 0 | 0 | 0 | 0 | 0 | 0
Other financial corporations | 471 | 206 | 14 | 0 | 9 | 0 | 0 | 0
Non-financial corporations | 9,139 | 8,653 | 1,052 | 188 | 595 | 6 | 2 | 10
Households | 5,487 | 3,557 | 462 | 169 | 300 | 50 | 2 | 8
Total | 15,511 | 12,489 | 1,529 | 357 | 904 | 56 | 5 | 19

The year-end total GCA of the AC loans and advances to customers that were initially recognised during the reporting period and
not fully derecognised by 31 December 2025 amounts to EUR 49,654 million (2024: EUR 44,600 million). The GCA of the AC loans
and advances to customers that were held at 1 January 2025 and fully derecognised during the reporting period amounts to
EUR 19,070 million ( 2024: EUR 16,191 million).
The undiscounted amount of the lifetime expected credit losses considered in the initial measurement of the AC loans and
advances to customers initially recognised and identified as POCI during the year 2025 amounted to EUR 123 million (2024:
EUR 54 million).
Movement in credit loss allowances – trade and other receivables

in EUR million | As of | Additions | Derecognitions | Transfers between stages | Other changes in credit risk (net) | Write-offs | Other | As of
| Jan 25 |  |  |  |  |  |  | Dec 25
Stage 1 | -10 | -6 | 3 | 1 | -1 | 1 | 1 | -11
Stage 2 | -8 | 0 | 2 | -1 | 0 | 1 | 0 | -7
Stage 3 | -26 | 0 | 3 | -5 | -5 | 6 | -1 | -28
POCI | -1 | 0 | 0 | 0 | -1 | 0 | 0 | -1
Total | -44 | -7 | 8 | -5 | -7 | 9 | -1 | -47
| Jan 24 |  |  |  |  |  |  | Dec 24
Stage 1 | -11 | -8 | 4 | 2 | 2 | 0 | 0 | -10
Stage 2 | -10 | 0 | 2 | -2 | 2 | 1 | 0 | -8
Stage 3 | -41 | 0 | 4 | -2 | 6 | 8 | 0 | -26
POCI | -1 | 0 | 0 | 0 | 0 | 0 | 0 | -1
Total | -63 | -8 | 10 | -2 | 10 | 9 | 0 | -44

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FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – DEBT INSTRUMENTS
Movement in credit loss allowances – debt instrument financial assets

in EUR million | As of | Additions | Derecognitions | Transfers between stages | Other changes in credit risk (net) | Other | As of
| Jan 25 |  |  |  |  |  | Dec 25
Stage 1 | -3 | -1 | 1 | 2 | -2 | 0 | -3
Stage 2 | -9 | 0 | 1 | 0 | 8 | 0 | 0
Stage 3 | 0 | 0 | 0 | 0 | -1 | 0 | -2
Total | -13 | -1 | 2 | 2 | 5 | 0 | -5
| Jan 24 |  |  |  |  |  | Dec 24
Stage 1 | -5 | -1 | 2 | 1 | 0 | 0 | -3
Stage 2 | -9 | 0 | 0 | -1 | 0 | 0 | -9
Stage 3 | -1 | 0 | 0 | 0 | 0 | 0 | 0
Total | -14 | -1 | 2 | 0 | 1 | 0 | -13

One significant driver of the above presented CLA movements for the year has been the transfer of the related instruments across
different stages. The year-end GCAs of FVOCI debt securities that were assigned at 31 December 2025 to a different stage compared
to 1 January 2025 (or to the initial recognition date, if purchased during the year) are summarized in the table below:
Transfers between stages – debt instrument financial assets

in EUR million | Dec 24 | Dec 25
Transfers between Stage 1 and Stage 2 |  |
To Stage 2 from Stage 1 | 41 | 36
To Stage 1 from Stage 2 | 43 | 104
Transfers between Stage 1 and Stage 3 |  |
To Stage 3 from Stage 1 | 2 | 0

FINANCE LEASE RECEIVABLES
Movement in credit loss allowances – finance lease receivables

in EUR million | As of | Additions | Derecognitions | Transfers between stages | Other changes in credit risk (net) | Write-offs | Other | As of
| Jan 25 |  |  |  |  |  |  | Dec 25
Stage 1 | -20 | -9 | 2 | 12 | -8 | 0 | -1 | -22
Stage 2 | -31 | 0 | 1 | -16 | 21 | 0 | 1 | -25
Stage 3 | -32 | 0 | 7 | -5 | -6 | 4 | 0 | -32
POCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total | -83 | -9 | 11 | -9 | 7 | 4 | 0 | -79
| Jan 24 |  |  |  |  |  |  | Dec 24
Stage 1 | -17 | -7 | 1 | 12 | -8 | 0 | 0 | -20
Stage 2 | -33 | 0 | 1 | -15 | 15 | 0 | 0 | -31
Stage 3 | -40 | 0 | 6 | -6 | 1 | 7 | 0 | -32
POCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Total | -90 | -8 | 8 | -8 | 8 | 7 | 0 | -83

The column ‘Other changes in credit risk (net)’ captures the passage-of-time adverse effect (‘unwinding correction’) over the
lifetime expected cash shortfalls of finance lease receivables that were assigned to Stage 3 for any period throughout the year, as
well as of any POCI finance lease receivables. This adverse effect amounted to EUR 1 million (2024: EUR 1 million) cumulatively
for the year 2025, which also reflects the unrecognised interest income out of the related finance lease receivables throughout the
year.
The use of CLA triggered by full or partial write-offs of finance lease receivables is reported in column ‘Write-offs’.
253
One significant driver of the CLA movements for the year has been the transfer of the related instruments across impairment
stages. The year-end GCA of finance lease receivables that were assigned at 31 December 2025 to a different stage compared to 1
January 2025 (or to the initial recognition date, if originated during the year) are summarized below:
Transfers between stages – finance lease receivables

in EUR million | Dec 24 | Dec 25
Transfers between Stage 1 and Stage 2 |  |
To Stage 2 from Stage 1 | 273 | 215
To Stage 1 from Stage 2 | 257 | 193
Transfers between Stage 2 and Stage 3 |  |
To Stage 3 from Stage 2 | 27 | 16
To Stage 2 from Stage 3 | 28 | 3
Transfers between Stage 1 and Stage 3 |  |
To Stage 3 from Stage 1 | 32 | 20
To Stage 1 from Stage 3 | 2 | 5

The year-end total GCA of the finance lease receivables that were initially recognised during the reporting period and not fully de-
recognised by 31 December 2025 amounts to EUR 1,311 million (2024: EUR 1,260 million). The GCA of the finance lease
receivables that were held at 1 January 2025 and fully derecognised during the year 2025 amounts to EUR 524 million ( 2024:
EUR 657 million).
LOAN COMMITMENTS AND FINANCIAL GUARANTEES
Movement in credit loss allowances – loan commitments and financial guarantees

in EUR million | As of | Additions | Derecognitions | Transfers between stages | Other changes in credit risk (net) | Other | As of
| Jan 25 |  |  |  |  |  | Dec 25
Stage 1 | 98 | 201 | -45 | -153 | 6 | -2 | 105
Stage 2 | 237 | 0 | -65 | 206 | -135 | -10 | 233
Stage 3 | 135 | 0 | -33 | 8 | -13 | -1 | 95
POCI | 4 | 2 | -7 | 0 | 5 | -1 | 3
Total | 474 | 202 | -150 | 60 | -138 | -13 | 435
| Jan 24 |  |  |  |  |  | Dec 24
Stage 1 | 82 | 190 | -52 | -138 | 17 | -1 | 98
Stage 2 | 208 | 0 | -97 | 209 | -73 | -10 | 237
Stage 3 | 124 | 0 | -47 | 27 | 31 | 0 | 135
POCI | 2 | 0 | -3 | 0 | 4 | 0 | 4
Total | 416 | 190 | -198 | 97 | -21 | -10 | 474

The column ‘Other changes in credit risk (net)’ captures the passage-of-time adverse effect (‘unwinding’) over the lifetime expected
cash shortfalls of defaulted loan commitments and financial guarantees.
One significant driver of the CLA movements for the year has been the transfer of the related instruments across different stages.
The year-end notional amounts of loan commitments and financial guarantees that were assigned at 31 December 2025 to a
different stage compared to 1 January 2025 (or to the initial recognition date, if originated during the year) are summarized below:
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Transfers between stages – loan commitments and financial guarantees

in EUR million | Dec 24 | Dec 25
Transfers between Stage 1 and Stage 2 |  |
To Stage 2 from Stage 1 | 2,806 | 1,697
To Stage 1 from Stage 2 | 3,370 | 1,836
Transfers between Stage 2 and Defaulted |  |
To Defaulted from Stage 2 | 50 | 45
To Stage 2 from Defaulted | 28 | 22
Transfers between Stage 1 and Defaulted |  |
To Defaulted from Stage 1 | 51 | 26
To Stage 1 from Defaulted | 6 | 4

The year-end nominal amounts of unused off-balance commitments and financial guarantees that were initially recognised during
the year 2025 and not fully derecognised by 31 December 2025 amounts to EUR 22,914 million (2024: EUR 21,314 million). The
nominal amounts of unused off-balance commitments or financial guarantees that were held at 1 January 2025 and fully
derecognised during the year 2025 amounts to EUR 13,608 million (2024: EUR 12,355 million).
40. Scenarios used in forward looking information and Crises Effects
Overview on scenarios used in forward-looking information
INCORPORATION OF FORWARD-LOOKING INFORMATION
Parameters are determined to reflect the risk as a ‘point-in-time’ measure and with consideration of forward-looking information
(FLI). This results in using a baseline forecast and several alternative scenarios for selected macroeconomic variables. The
alternative scenarios are derived, together with their weights of scenario outcome, as a deviation from baseline forecasts. The
baseline forecasts are, with few exceptions, internally determined by Erste Group’s research department. Given multiple scenarios,
the ‘neutral’ PDs (and partially included in LGDs) are adjusted using macro models that link relevant macroeconomic variables
with risk drivers. The same macro-shift models as for external and internal stress test are used. Forward-looking information is
incorporated for first three years of ECL measurement. Measurement of the parameters for the remaining lifetime returns to
through-the-cycle observations immediately in year four.
Thus, the unbiased scenario weighted ECL considering FLI is derived using the weights representing the outcome of each
macroeconomic scenario. Typical macroeconomic variables may include real gross domestic product, unemployment rate, inflation
rate, production index as well as market interest rates. The selection of variables also depends on the availability of reliable
forecasts for the given local market. The main indicator of the estimated economic development and basis for alternative scenario
derivation is the GDP. In addition, the ongoing war in Ukraine and continued geopolitical instability in the Middle East remain key
drivers of macroeconomic uncertainty in 2026. Macro-shift FLI models are recalibrated on a regular basis to ensure that they reflect
the most relevant macro-variables. The recalibration is performed by the respective local entities (except the central models for
Group (Large) Corporates), and variables with the highest statistical relevance are included.
In case of central model for Group (Large) Corporates, the Group (dedicated central units) is responsible for the PD review,
including the FLI component which is structured on the country of risk distinguishing the macro development in the different
countries. The same approach is applied in case of local specialized lending portfolio booked in Austria.
In June 2025, the FLI shifts were reviewed. The most significant impact on expected credit loss was an increase of EUR 44 million
driven by the portfolios booked in Austria, partially offset by a EUR 28 million decrease from the Romanian local models.
In September 2025, Erste Group reassessed the use of in-model adjustments within FLI models, specifically the incorporation of
comprehensive stress test (CST) scenario into the downside scenario modelling applied in case of the central models for Group
(Large) Corporates and the local CEE models. Based on the assessment of exit triggers, Erste Group decided to remove CST from
downside scenario modelling. This decision was supported by the positive macroeconomic development in Czechia, Croatia,
Romania and Serbia and risk materialization in Germany. In case of Slovakia and Hungary, it was concluded that downside risk is
already considered in GDP outlook. As a result of the CST removal, the expected credit loss (ECL) decreased in amount of approx.
EUR 15 million, based on internal simulations, until end of October 2025. For Austrian local models, the CST had already been
removed from scenario modelling in 2024.
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In October 2025, the PD macro model for local models was reviewed in Czechia. It resulted in ECL release in amount of EUR 21
million. Erste Group conducted the last review of the FLI in November 2025 based on the disclosed macroeconomic forecasts for
baseline, downside, and upside scenarios. It triggered the release of allocated ECL by EUR 34 million on Erste Group level.
The bank is disclosing sensitivity of the staging and ECL on macro scenarios in the ‘Collective assessment’ section below.
Baseline scenario
Erste Group anticipates a slight moderation of Eurozone economic activity in 2026, with GDP-growth forecast to reach 1.1%,
following an estimated 1.4% expansion in 2025. The 2025 GDP-growth figure has been benefited from a sizeable one-off effect
stemming from the of intellectual property rights by large multinational companies to Ireland. Currently, the Eurozone economy
continues to deliver solid growth, supported by robust private consumption, benefiting from rising real wages, and by investment
activity driven by favourable financing conditions. With increasing competitive pressures from China and the trade barriers
imposed by the United States, the outlook for foreign trade remains cautious.
Over the midterm, growth prospects have improved marginally, supported by Germany’s announcement of a EUR 500 billion fiscal
stimulus programme to be implemented over the next decade, as well as the relaxation of EU fiscal rules to accommodate increased
defence spending across Member States. With the deposit rate at 2%, the ECB is considered to have reached the end of the current
rate cutting cycle. Risks to the interest rate outlook are now more balanced, compared with the previously prevailing downside bias
up to mid‑2025. Assuming macroeconomic fundamentals remain stable and financing conditions supportive, no further monetary
easing by the ECB is anticipated.
DOWNSIDE RISKS TO THE BASELINE SCENARIO
On of the k ey downside risks includes the ongoing conflict in Ukraine. In addition, uncertainty surrounding the trade policy
direction of the new US administration under President Trump remains a significant challenge. The announcement of a framework
about a trade deal between the US and the EU has reduced uncertainty to some extent. However, subsequent additional demands
from the US administration, as well as renewed tensions regarding Greenland, demonstrate the fragility of the current negotiation
environment. A deterioration in US–EU trade relations would pose a clear downside risk to the economic outlook, particularly for
export performance and investment growth.
Energy security also remains a critical concern for the EU in light of the ongoing war between Russia and Ukraine. The region has
become increasingly dependent on liquefied natural gas (LNG) imports from geographically distant suppliers, such as the United
States and Middle Eastern countries. At the same time, a surge in energy‑intensive data centres in the US, driven by the rapid
expansion of AI applications, has significantly increased domestic energy demand. This could constrain the volume of LNG
available for export to Europe. Any disruption in global LNG supply chains could trigger sharp increases in energy prices,
potentially forcing the ECB to adopt a more restrictive monetary policy stance to contain inflation, with implications across the
entire yield curve.
Furthermore, the rapid expansion of green‑energy investments adds volatility to the European power system. Variability in
renewable energy production can lead to temporary spikes in electricity prices, such as the recent increases observed in Spain,
which can negatively affect industrial output and erode consumer purchasing power.
A pronounced increase in interest rates would also pose downside risks for both corporate and household investment. While the
likelihood of a sharp rise in rates has recently diminished, such a scenario could still result in investment activity falling below the
levels assumed in the baseline forecast.
Higher Harmonized Index of Consumer Prices (HICP), particularly in energy-related costs, would reduce disposable income and
dampen consumption. Combined with elevated post‑pandemic debt levels, rising military expenditures, and expansionary fiscal
policies, especially in France, this may heighten investor concerns about debt sustainability in certain EU member states.
UPSIDE RISKS TO THE BASELINE SCENARIO
A stronger and faster recovery in global industrial activity could provide notable upside potential for the Eurozone economy. This
would be particularly beneficial for Germany, which is expected to post slight GDP growth in 2025 - its first expansion in three
years. Given Germany’s deep economic linkages with other major Eurozone economies, a rebound in German industrial output
would likely generate positive spillover effects across the region.
In such an upside scenario, Eurozone GDP growth in 2026 would receive an additional boost, primarily driven by a more dynamic
than expected rebound in investment activity. Improved consumer sentiment would further support private consumption, leading
256
to a stronger contribution to overall growth compared with the baseline scenario. The services sector would also benefit from rising
confidence and increased household spending.
For this optimistic scenario to materialise, a continued and gradual decline in inflation, particularly within the services component,
remains essential. This would help maintain the ECB’s deposit facility rate at 2% and preserve favourable financing conditions.
Overview of Baseline, Upside and Downside scenarios
Below Erste Group is summarizing expected development of the GDP for all regions, all scenarios and scenario weights, as main
indicator of the macro-economic situation. In case of Group (Large) Corporate clients, the considered GDP scenarios are the same
as shown below for the standalone countries, however including GDP predictions for Germany.
Additionally, Erste is disclosing the most relevant variables for the macro-shift model in the most significant regions.
Austria, Czechia, Slovakia and Romania are presented as they have the highest share of credit risk exposure, expected credit loss
and the highest share of FLI component in the expected credit loss measurement. Macro-shift models are calibrated for the three
main sub-portfolios: private individuals, micro enterprises and another corporate business. Models’ calibration and variables
disclosed below are incorporated into expected credit loss measurement as of 31 December 2025. The baseline and weighted
scenario outcome for the major variables is disclosed in the tabular format for the years 2026-2028.
257
Baseline, upside and downside scenarios of GDP growth by geographic region

|  | Scenario weights | GDP growth in %
| Scenario | 2026-2028 | 2026 | 2027 | 2028
Dec 25 |  |  |  |  |
| Upside | 21% | 3.3 | 3.7 | 3.7
Austria | Baseline | 50% | 0.7 | 1.1 | 1.1
| Downside | 29% | -2.0 | -1.6 | -1.6
| Upside | 24% | 4.7 | 4.7 | 4.8
Czechia | Baseline | 50% | 2.7 | 2.7 | 2.8
| Downside | 26% | 0.2 | 0.2 | 0.3
| Upside | 26% | 3.7 | 4.2 | 4.4
Slovakia | Baseline | 50% | 1.3 | 1.8 | 2.0
| Downside | 24% | -1.8 | -1.3 | -1.1
| Upside | 24% | 5.0 | 5.9 | 5.6
Romania | Baseline | 50% | 2.1 | 3.0 | 2.7
| Downside | 26% | -1.4 | -0.5 | -0.8
| Upside | 18% | 4.4 | 4.7 | 4.9
Hungary | Baseline | 50% | 2.0 | 2.3 | 2.5
| Downside | 32% | -0.6 | -0.3 | -0.1
| Upside | 26% | 4.9 | 5.3 | 4.9
Croatia | Baseline | 50% | 2.8 | 2.6 | 2.6
| Downside | 24% | 0.7 | -0.1 | 0.3
| Upside | 21% | 4.8 | 6.6 | 5.6
Serbia | Baseline | 50% | 2.7 | 4.5 | 3.5
| Downside | 29% | 0.5 | 2.3 | 1.3
| Upside | 22% | 3.0 | 3.6 | 3.3
Germany | Baseline | 50% | 0.9 | 1.5 | 1.2
| Downside | 28% | -1.7 | -1.1 | -1.4
Dec 24 |  | 2025-2027 | 2025 | 2026 | 2027
| Upside | 23% | 3.3 | 3.2 | 3.6
Austria | Baseline | 50% | 0.9 | 0.8 | 1.2
| Downside | 27% | -1.8 | -1.9 | -1.5
| Upside | 22% | 4.6 | 4.7 | 4.6
Czechia | Baseline | 50% | 2.6 | 2.7 | 2.6
| Downside | 28% | -3.9 | -2.1 | 0.1
| Upside | 28% | 4.4 | 4.3 | 4.6
Slovakia | Baseline | 50% | 2.0 | 1.9 | 2.2
| Downside | 22% | -4.9 | -2.8 | -0.5
| Upside | 26% | 4.4 | 5.6 | 5.0
Romania | Baseline | 50% | 1.2 | 2.4 | 1.8
| Downside | 24% | -3.0 | -1.0 | -0.7
| Upside | 19% | 4.4 | 6.0 | 5.7
Hungary | Baseline | 50% | 2.0 | 3.6 | 3.3
| Downside | 31% | -4.4 | -1.8 | 0.5
| Upside | 28% | 4.8 | 5.5 | 4.5
Croatia | Baseline | 50% | 2.9 | 2.8 | 2.5
| Downside | 22% | -3.0 | -1.2 | 0.2
| Upside | 21% | 6.7 | 6.5 | 6.7
Serbia | Baseline | 50% | 4.5 | 4.3 | 4.5
| Downside | 29% | -0.8 | 0.5 | 1.3
| Upside | 24% | 2.8 | 3.4 | 3.1
Germany | Baseline | 50% | 0.8 | 1.4 | 1.1
| Downside | 26% | -3.2 | -2.0 | -1.0

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Baseline and scenario weighted values of the main variables in the most significant regions

| Baseline scenario | Scenario weighted outcome
| 2026 | 2027 | 2028 | 2026 | 2027 | 2028
Dec 25 |  |  |  |  |  |
Austria |  |  |  |  |  |
GDP growth | 0.7 | 1.1 | 1.1 | 0.5 | 0.9 | 0.9
Inflation | 2.0 | 2.2 | 2.0 | 2.1 | 2.3 | 2.1
Yields_10Y | 2.8 | 2.7 | 2.7 | 2.8 | 2.7 | 2.2
Czechia |  |  |  |  |  |
GDP Deflator | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4
CPI core | 157.7 | 161.5 | 165.8 | 157.7 | 161.5 | 165.7
Slovakia |  |  |  |  |  |
Unemployment Rate | 5.8 | 5.6 | 5.5 | 5.8 | 5.6 | 5.5
Inflation | 3.2 | 2.3 | 2.1 | 3.5 | 2.6 | 2.4
Romania |  |  |  |  |  |
GDP growth | 2.1 | 3.0 | 2.7 | 1.9 | 2.8 | 2.5
Interest Rate (ROBOR 3M) | 5.5 | 4.3 | 4.0 | 5.6 | 4.4 | 4.1
Inflation (CPI) | 6.5 | 3.0 | 3.0 | 6.5 | 3.0 | 3.0
| 2025 | 2026 | 2027 | 2025 | 2026 | 2027
Dec 24 |  |  |  |  |  |
Austria |  |  |  |  |  |
GDP growth | 0.9 | 0.8 | 1.2 | 0.7 | 0.6 | 1.0
Inflation | 1.7 | 1.5 | 2.0 | 1.8 | 1.6 | 2.1
Yields_10Y | 2.3 | 2.3 | 2.3 | 2.3 | 2.3 | 2.3
Czechia |  |  |  |  |  |
Unemployment Rate | 3.4 | 3.5 | 3.5 | 3.7 | 4.0 | 4.0
Inflation (PPI) | 147.8 | 151.0 | 154.1 | 148.2 | 151.5 | 154.6
Slovakia |  |  |  |  |  |
Unemployment Rate | 5.5 | 5.3 | 5.1 | 5.4 | 5.6 | 5.3
Inflation | 4.5 | 3.0 | 2.3 | 4.6 | 3.2 | 2.0
Romania |  |  |  |  |  |
GDP growth | 1.2 | 2.4 | 1.8 | 1.0 | 2.4 | 2.0
Interest Rate (ROBOR 3M) | 5.2 | 4.4 | 4.3 | 5.2 | 4.4 | 4.2
Inflation (CPI) | 4.1 | 3.2 | 3.1 | 4.5 | 3.2 | 2.8

Collective assessment
In addition to standard SICR assessment, Erste Group applied collective SICR assessment, i.e., transfer into Stage 2 based on pre-
defined portfolio characteristics, due to emerging risks not covered by standard models. This approach is aligned with all affected
entities and business lines and approved by the respective governance bodies of Erste Group. It requires, after the assessment of the
outliers from the common portfolio characteristics, to have exemptions from the collective SICR assessment, if properly
documented why they would behave differently than the rest of the portfolio.
In December 2025, Erste Group applied collective staging assessment (industry stage overlays), that had been implemented in 2024.
This approach means that rules for transferring into stage 2 are defined as a combination, in case of industries selected in line with
industry strategy, to ensuring that it reflects risks and changes in the risk assessment which our portfolio is exposed to, and one-
year IFRS PDs.
During 2025, several adjustments were made to the industry stage overlays in line with updates to the Group’s risk strategy and
observed portfolio developments:
March - the Hotel and Leisure sub-industry, category Leisure, was added into the scope of industry overlays what resulted into
ECL allocation in amount of EUR 10 million.
September - following a review of the industry strategy, the Construction and Building Materials sub‑industry was removed from
the scope of industry stage overlays. This decision resulted in the release of allocated ECL amounting to EUR 6 million.
October - the Real Estate Developers sub‑industry was excluded from the overlays for Central and Eastern European (CEE)
countries, and subsequently for the Holding, due to stable portfolio performance. No deterioration was observed in the CEE
region in recent periods, and no adverse developments are anticipated. The removal of this overlay led to the release of EUR 20
million in allocated ECL. In Austria, the segment remained within the scope of the overlay. Even though the inflow of new
259
defaults has stabilised, it continues to remain at an elevated level. Once a sustained improvement is confirmed in 2026, the
overlays in the Austrian perimeter will also be released.
December - the Metals (Iron/Steel) industry category was added to the industry stage overlays following a change in the Group’s
risk strategy. The adjustment was driven by decreasing demand in certain key end‑user industries (e.g., construction), increased
price competition from Asian imports, and persistent structural cost pressures stemming from elevated energy and labour
expenses. This update resulted in a minor ECL allocation of EUR 0.4 million.
Out of the overall credit risk exposure of EUR 417 billion (2024: EUR 399 billion), portfolio under collective staging assessment
(industry stage overlays) represents EUR 63 billion, thereof EUR 12 billion is in Stage 2 (out of which EUR 4 billion due to applying
rules for industry stage overlays).
In addition, local risk management may apply a local SICR collective assessment when it is determined that the recalibration of the
PD model, the macro‑shift FLI model, or the scoring model does not sufficiently reflect current economic conditions, such as
developments in inflation, interest rates, or unemployment.
In 2022, local risk management in Czechia and Croatia assessed that the recalibration of the macro-shift FLI model for private
individuals did not sufficiently reflect the current environment. Consequently, a local SICR collective assessment for private
individuals was introduced. Based on the regular review of exit triggers, these collective assessments were maintained as of
year‑end 2025. As of 31 December 2025, the exposure in Stage 2 resulting from this collective assessment amounts to EUR 1 billion,
with an allocated ECL to EUR 17 million (2024: exposure of EUR 1 billion, ECL of EUR 21 million).
In addition, at the same time, in Croatia, following the internal validation of the scoring model for private individuals, another type
of local SICR collective assessment is applied. As of 31 December 2025, the exposure in Stage 2 due to this collective assessment
amounts to EUR 366 million and an allocated ECL to EUR 12 million (2024: exposure of EUR 330 million, ECL of EUR 11 million).
In September 2024, because of floods in parts of Central Europe, new SICR collective assessment rules were introduced in Czechia
to cover the physical risk. In the second quarter of 2025, these rules were decommissioned – the evaluation of the exit trigger
showed no deterioration of the affected portfolio since September 2024. It triggered the release of allocated ECL by EUR 15 million.
EFFECT ON EXPECTED CREDIT LOSS
The analysis tables below present the effects of the collective SICR assessment and FLI on both exposure migration to Stage 2 and
the resulting increase of ECL. Additional sensitivities to the baseline, upside and downside scenarios are simulated. Effects on
geographical segments are disclosed.
In December 2025, the exposure in Stage 2 due to the application of the rules for collective SICR assessment (industry stage
overlays) stood at EUR 3,784 million (2024: EUR 6,559 million), with additional ECL allocated in the amount of EUR 71 million
(2024: EUR 122 million).
As described above, the FLI were reassessed based on the latest macro-scenarios in the fourth quarter of 2025. Considering the
review of in-model adjustments (removal of the CST scenario from the downside scenario), the Stage 2 exposure triggered by FLI
decreased to EUR 2,942 million as of December 2025 (2024: EUR 3,599 million). The decrease of the Stage 2 exposure affected the
level of ECL allocated in Stage 2 due to FLI: EUR 265 million (2024: EUR 326 million).
Scenario simulation presents sensitivity analyses taking into consideration only changes due to the different values of PDs, if
baseline, upside or downside FLI scenarios had 100% weight. Sensitivities of these scenarios are calculated in comparison to current
production - weighted scenarios FLI shifted - PDs (weights and scenarios are disclosed in the ‘Incorporation of forward-looking
information’ section above). Both staging and resulting ECL were simulated with the scenario PDs.
The incorporation of 100% baseline scenario instead of the currently applied weighted scenario outcome would lead to a decrease of
Stage 2 exposure by EUR 289 million (2024: EUR 856 million), resulting in an ECL drop by EUR 19 million (2024: EUR 58 million).
The downside scenario would lead to additional EUR 3,905 million (2024: EUR 5,281 million) of exposure migration to Stage 2 in
comparison with scenario weighted FLI, resulting in ECL increase of EUR 294 million (2024: EUR 383 million).
For the ECL change a positive sign (+) equals a release while a negative sign (-) equals an allocation. Values presented sensitivities
are results of internal simulations.
260
F orward looking information (FLI) and collective SICR assessment
Impact on credit risk exposure by geographical segment

| Current status - parameters (FLI shifted) | Simulations - difference to FLI shifts effect
|  |  |  | Stage 2 impacted by |  |  |
|  |  |  | Collective assessment |  |  |  |
in EUR million | Stage 1 | Stage 2 | Total | Industry | PI | FLI shifts | Upside scenario | Baseline scenario | Downside scenario
Dec 25 |  |  |  |  |  |  |  |  |
Austria | 163,297 | 22,904 | 186,200 | 3,244 | 0 | 2,064 | -2,239 | -250 | 3,351
EBOe & Subs. | 49,186 | 6,132 | 55,319 | 905 | 0 | 720 | -795 | -101 | 1,125
Savings Banks | 66,307 | 14,250 | 80,557 | 2,317 | 0 | 1,151 | -1,381 | -149 | 1,992
Other Austria | 47,803 | 2,522 | 50,325 | 22 | 0 | 193 | -63 | 0 | 233
CEE | 167,141 | 10,325 | 177,466 | 540 | 1,055 | 878 | -485 | -39 | 555
Czechia | 84,587 | 4,222 | 88,809 | 173 | 850 | 429 | -253 | -13 | 200
Slovakia | 26,290 | 1,670 | 27,960 | 66 | 0 | 30 | -28 | 0 | 59
Romania | 26,197 | 1,897 | 28,095 | 121 | 0 | 183 | -151 | -21 | 240
Hungary | 10,775 | 845 | 11,620 | 45 | 0 | 126 | -32 | -4 | 37
Croatia | 15,505 | 1,427 | 16,931 | 92 | 205 | 105 | -18 | 0 | 15
Serbia | 3,786 | 265 | 4,051 | 44 | 0 | 5 | -3 | -1 | 5
Other | 17,559 | 5 | 17,565 | 0 | 0 | 0 | 0 | 0 | 0
Total | 347,996 | 33,234 | 381,231 | 3,784 | 1,055 | 2,942 | -2,723 | -289 | 3,905
Dec 24 |  |  |  |  |  |  |  |  |
Austria | 156,474 | 25,257 | 181,732 | 4,743 | 0 | 2,393 | -1,886 | -525 | 3,529
EBOe & Subs. | 46,276 | 6,697 | 52,974 | 1,297 | 0 | 809 | -635 | -170 | 999
Savings Banks | 61,449 | 15,360 | 76,809 | 3,333 | 0 | 1,340 | -1,071 | -301 | 1,620
Other Austria | 48,749 | 3,200 | 51,949 | 113 | 0 | 244 | -180 | -54 | 910
CEE | 150,805 | 15,127 | 165,932 | 1,818 | 1,382 | 1,205 | -1,016 | -332 | 1,751
Czechia | 77,490 | 7,215 | 84,705 | 611 | 988 | 616 | -509 | -152 | 882
Slovakia | 23,396 | 2,295 | 25,692 | 462 | 0 | 71 | -64 | -56 | 76
Romania | 23,631 | 2,466 | 26,097 | 470 | 0 | 298 | -320 | -80 | 610
Hungary | 8,986 | 1,129 | 10,115 | 49 | 0 | 185 | -92 | -34 | 108
Croatia | 14,026 | 1,706 | 15,732 | 174 | 394 | 44 | -6 | -2 | 39
Serbia | 3,276 | 316 | 3,592 | 52 | 0 | -9 | -25 | -8 | 36
Other | 16,370 | 3 | 16,373 | 0 | 0 | 0 | 0 | 0 | 0
Total | 323,649 | 40,387 | 364,037 | 6,561 | 1,382 | 3,598 | -2,902 | -857 | 5,280

261
Impact on credit loss allowances by geographical segment

| Current status - parameters (FLI shifted) | Simulations - difference to FLI shifts effect
|  |  |  | Out of which: |  |  |
|  |  |  | Collective assessment due to |  |  |  |
in EUR million | Stage 1 | Stage 2 | Total | Industry | PI | FLI shifts | Upside scenario | Baseline scenario | Downside scenario
Dec 25 |  |  |  |  |  |  |  |  |
Austria | -196 | -701 | -897 | -55 | 0 | -144 | 141 | 12 | -207
EBOe & Subs. | -47 | -188 | -236 | -15 | 0 | -38 | 41 | 3 | -63
Savings Banks | -112 | -458 | -570 | -40 | 0 | -77 | 88 | 6 | -128
Other Austria | -37 | -55 | -91 | 0 | 0 | -29 | 12 | 3 | -17
CEE | -357 | -677 | -1,034 | -15 | -17 | -121 | 75 | 7 | -87
Czechia | -107 | -275 | -383 | -5 | -11 | -30 | 24 | 3 | -23
Slovakia | -47 | -95 | -142 | -2 | 0 | -4 | 8 | 0 | -10
Romania | -115 | -168 | -283 | -5 | 0 | -43 | 35 | 3 | -46
Hungary | -25 | -47 | -72 | -1 | 0 | -21 | 3 | 0 | -3
Croatia | -50 | -76 | -126 | -2 | -6 | -21 | 4 | 0 | -4
Serbia | -14 | -14 | -28 | -1 | 0 | -2 | 1 | 0 | -1
Other | -2 | -1 | -3 | 0 | 0 | 0 | 0 | 0 | 0
Total | -555 | -1,379 | -1,934 | -71 | -17 | -265 | 216 | 19 | -294
Dec 24 |  |  |  |  |  |  |  |  |
Austria | -184 | -753 | -937 | -75 | 0 | -169 | 103 | 27 | -173
EBOe & Subs. | -43 | -180 | -223 | -19 | 0 | -39 | 27 | 6 | -41
Savings Banks | -99 | -498 | -597 | -53 | 0 | -95 | 62 | 16 | -92
Other Austria | -42 | -76 | -117 | -3 | 0 | -35 | 14 | 5 | -40
CEE | -328 | -795 | -1,123 | -47 | -21 | -156 | 113 | 32 | -212
Czechia | -97 | -286 | -382 | -17 | -14 | -51 | 30 | 8 | -47
Slovakia | -37 | -124 | -161 | -11 | 0 | -6 | 5 | 3 | -14
Romania | -121 | -243 | -364 | -11 | 0 | -61 | 67 | 17 | -136
Hungary | -24 | -50 | -74 | -1 | 0 | -21 | 6 | 2 | -7
Croatia | -40 | -79 | -119 | -7 | -7 | -17 | 3 | 1 | -5
Serbia | -11 | -13 | -24 | 0 | 0 | 0 | 2 | 1 | -3
Other | -2 | -2 | -4 | 0 | 0 | 0 | 0 | 0 | 0
Total | -514 | -1,550 | -2,064 | -122 | -21 | -325 | 216 | 59 | -385

41. Restructuring, renegotiation and forbearance
Restructuring means contractual modification of any of the customer’s loan repayment conditions including tenor, interest rate,
fees, principal amount due or a combination thereof. Forbearance can be initiated by the bank or by the customer (on account of
loss of employment, illness etc.). Components of forbearance can be instalment reduction, tenor extension, interest reduction or
forgiveness, principal reduction or forgiveness, revolving exposure change to instalment and/or others.
A restructuring is considered ‘forbearance’ if it entails a concession towards a customer facing or about to face financial difficulties
in meeting their contractual financial commitments. A borrower is in financial difficulties if any of the following conditions are
met:
_ the customer was more than 30 days past due in the past 3 months;
_ the customer would be 30 days past due or more without receiving forbearance;
_ the customer is in default;
_ the customer would default without receiving forbearance.
Additional criteria for non-retail segment:
_ early warning signals for this customer identified (deteriorated financial figures, increased probability of default);
_ customers managed in a workout unit.
Forbearance concession triggers the performing forbearance classification and means that any of the following conditions are met:
_ modification/refinancing of the contract would not have been granted, had the customer not been in financial difficulty;
_ there is a difference in favour of the customer between the modified/refinanced terms of the contract and the previous terms of
the contract;
262
_ the modified/refinanced contract includes more favourable terms than other customers with a similar risk profile would have
obtained from the same institution;
_ activation of embedded forbearance clause of the contract;
_ any waiver of a default relevant covenant.
The performing forbearance classification can be discontinued and the account can become a non-forborne account when all the
following conditions are met:
_ a minimum of two years has passed from the date of classifying the exposure as performing forbearance (probation period);
_ under the forborne payment plan, at least 50% of the original (pre-forbearance) instalment has been regularly repaid (significant
repayment) at least during half of the probation period (in the case of retail customers);
_ regular repayments in a significant amount during at least half of the probation period have been made (in the case of non-retail
customers);
_ significant repayment includes amount previously past-due (if any) or written-off (if no-past due amounts) for both segments re-
tail and non-retail;
_ none of the exposure of the customer is more than 30 days past due at the end of the probation period.
Performing forborne exposures become non-performing when one of the following forbearance classifications is fulfilled during the
monitoring period of a minimum two years:
_ the contract modification involves total or partial cancellation of the debt by (partial) write-off;
_ an additional forbearance measure is extended;
_ the customer becomes more than 30 days past due on forborne exposure and in the past the customer was in the non-performing
_ forbearance category;
_ the customer meets any of the default event criteria defined in the default definition;
_ for corporate customers, when a final restructuring agreement cannot be concluded within 18 months after the first forbearance
measure.
The non-performing forbearance classification can be discontinued and reclassified as performing under probation when all the
following conditions are met:
_ the customer is not classified as defaulted according to the definition of default;
_ the customer has demonstrated the ability to comply with the post-forbearance conditions;
_ one year has passed from the date of classifying the exposure as non-performing forbearance or from the latest of the following
events:
_ the moment of extending the restructuring measure;
_ the end of the grace period included in the restructuring agreement;
_ the moment when the exposure has been classified as defaulted;
_ the forbearance has not led the exposure to be classified as non-performing.
263
Credit risk exposure, forbearance exposure and credit loss allowances

in EUR million | Loans and advances | Debt securities | Other positions | Loan commitments | Total
Dec 25 |  |  |  |  |
Credit exposure | 256,813 | 69,492 | 35,632 | 54,875 | 416,812
thereof gross forborne exposure | 5,657 | 0 | 0 | 189 | 5,846
Performing exposure | 251,071 | 69,478 | 35,437 | 54,740 | 410,726
thereof performing forborne exposure | 3,242 | 0 | 0 | 144 | 3,386
Credit loss allowances for performing exposure | -1,589 | -13 | -99 | -240 | -1,941
thereof credit loss allowances for performing forborne exposure | -169 | 0 | 0 | -7 | -176
Non-performing exposure | 5,742 | 14 | 195 | 136 | 6,086
thereof non-performing forborne exposure | 2,415 | 0 | 0 | 45 | 2,460
Credit loss allowances for non-performing exposure | -2,413 | -6 | -54 | -50 | -2,522
thereof credit loss allowances for non-performing forborne exposure | -838 | 0 | 0 | -6 | -844
Dec 24 |  |  |  |  |
Credit exposure | 249,162 | 63,769 | 34,854 | 50,981 | 398,766
thereof gross forborne exposure | 5,502 | 0 | 0 | 264 | 5,766
Performing exposure | 243,481 | 63,756 | 34,703 | 50,801 | 392,741
thereof performing forborne exposure | 3,377 | 0 | 0 | 194 | 3,571
Credit loss allowances for performing exposure | -1,711 | -23 | -110 | -229 | -2,073
thereof credit loss allowances for performing forborne exposure | -157 | 0 | 0 | -10 | -167
Non-performing exposure | 5,680 | 13 | 151 | 180 | 6,025
thereof non-performing forborne exposure | 2,126 | 0 | 0 | 70 | 2,196
Credit loss allowances for non-performing exposure | -2,412 | -4 | -67 | -83 | -2,566
thereof credit loss allowances for non-performing forborne exposure | -783 | 0 | 0 | -30 | -813

Types of forbearance exposure

in EUR million | Gross forborne exposure | Modification in terms and conditions | Refinancing
Dec 25 |  |  |
Loans and advances | 5,657 | 4,864 | 793
Debt securities | 0 | 0 | 0
Loan commitments | 189 | 154 | 35
Total | 5,846 | 5,018 | 828
Dec 24 |  |  |
Loans and advances | 5,502 | 4,799 | 703
Debt securities | 0 | 0 | 0
Loan commitments | 264 | 218 | 46
Total | 5,766 | 5,017 | 749

Loans and advances also include lease, trade and other receivables.
I mpact of non-significant contractual modifications of debt instruments AC assigned to Stage 2 and 3

| Dec 24 | Dec 25
in EUR million | Amortised cost before the modification | Net modification gains/losses | Amortised cost before the modification | Net modification gains/losses
Loans and advances |  |
General governments | 2 | 0 | 45 | 0
Other financial corporations | 15 | 0 | 35 | 0
Non-financial corporations | 2,609 | -6 | 2,866 | -1
Households | 1,053 | -6 | 780 | -5
Total | 3,679 | -12 | 3,727 | -6

As of 31 December 2025, the total GCA of Erste Group’s debt instruments measured at AC, which were impacted by non-significant
contractual modifications while they were assigned to Stage 2 or 3 and re-assigned to Stage 1 during the year 2025 amounted to
EUR 1,253 million (2024: EUR 1,123 million).
264
42. Non-performing credit risk exposure and credit loss allowances
For the definition of credit risk exposure classified as non-performing, please refer to the description of risk categories in the
subsection ‘Credit risk classification’. Credit risk allowances include credit loss allowances for financial assets, credit loss
allowances for loan commitments and financial guarantees (all allowances within the scope of IFRS 9) and provisions for other
commitments.
Credit loss allowances (all stages combined) covered 75% (2024: 78%) of the reported non-performing on-balance and off-balance
credit risk exposure.
During 2025, the non-performing credit risk exposure slightly increased by EUR 61 million, or 1%, while the credit loss allowances
for loans and advances together with credit loss allowances for loan commitments and financial guarantees decreased by EUR -170
million or -4%. This development resulted in a moderate decrease of 3 percentage points in the coverage of non-performing credit
risk exposure by credit risk allowances.
The following tables show the coverage of the non-performing credit risk exposure by credit loss allowances (without taking into
consideration collateral). The differences in the credit allowance levels between the reporting segments result from the risk
situation in the respective markets, different levels of collateralisation as well as the local legal environment and regulatory
requirements.
The non-performing exposure ratio (NPE ratio) is calculated as the non-performing credit risk exposure divided by total credit risk
exposure while the NPE coverage ratio is computed as total credit loss allowances (all allowances within the scope of IFRS 9)
divided by non-performing credit risk exposure at AC and FVOCI. Collateral is not considered in the NPE coverage ratio.
Non-performing credit risk exposure by geographical segment and
coverage by credit loss allowances and collateral

| Non-performing | Credit risk exposure | Credit loss allowances | Collateral for NPE | NPE ratio | NPE coverage ratio | NPE collateralisation ratio
in EUR million | Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI
Dec 25 |  |  |  |  |  |  |  |  |  |  |  |
Austria | 3,811 | 3,770 | 205,001 | 190,004 | -2,092 | 2,199 | 2,199 | 1.9% | 2.0% | 55.5% | 57.7% | 58.3%
EBOe & Subs. | 1,058 | 1,042 | 57,206 | 56,372 | -565 | 628 | 628 | 1.8% | 1.8% | 54.2% | 59.4% | 60.3%
Savings Banks | 2,415 | 2,404 | 86,041 | 82,983 | -1,373 | 1,455 | 1,455 | 2.8% | 2.9% | 57.1% | 60.2% | 60.5%
Other Austria | 338 | 324 | 61,753 | 50,649 | -154 | 116 | 116 | 0.5% | 0.6% | 47.5% | 34.3% | 35.8%
CEE | 2,275 | 2,162 | 194,181 | 179,781 | -2,362 | 764 | 751 | 1.2% | 1.2% | 109.3% | 33.6% | 34.7%
Czechia | 827 | 798 | 94,071 | 89,626 | -878 | 222 | 219 | 0.9% | 0.9% | 110.0% | 26.8% | 27.4%
Slovakia | 535 | 468 | 32,328 | 28,524 | -386 | 219 | 218 | 1.7% | 1.6% | 82.5% | 40.8% | 46.6%
Romania | 411 | 410 | 30,169 | 28,528 | -570 | 144 | 144 | 1.4% | 1.4% | 138.9% | 35.1% | 35.1%
Hungary | 135 | 122 | 14,723 | 11,754 | -153 | 51 | 42 | 0.9% | 1.0% | 125.6% | 37.9% | 34.5%
Croatia | 312 | 310 | 18,014 | 17,243 | -317 | 112 | 112 | 1.7% | 1.8% | 102.2% | 36.0% | 36.3%
Serbia | 54 | 54 | 4,875 | 4,106 | -60 | 17 | 17 | 1.1% | 1.3% | 109.9% | 30.8% | 30.8%
Other | 0 | 0 | 17,631 | 17,565 | -3 | 0 | 0 | 0.0% | 0.0% | >500.0% | 0.0% | 0.0%
Total | 6,086 | 5,933 | 416,812 | 387,350 | -4,457 | 2,963 | 2,950 | 1.5% | 1.5% | 75.1% | 48.7% | 49.7%
Dec 24 |  |  |  |  |  |  |  |  |  |  |  |
Austria | 3,872 | 3,828 | 201,970 | 185,583 | -2,174 | 2,138 | 2,138 | 1.9% | 2.1% | 56.8% | 55.2% | 55.9%
EBOe & Subs. | 1,013 | 1,012 | 54,609 | 53,988 | -546 | 615 | 615 | 1.9% | 1.9% | 53.9% | 60.8% | 60.8%
Savings Banks | 2,279 | 2,268 | 81,479 | 79,099 | -1,389 | 1,329 | 1,329 | 2.8% | 2.9% | 61.2% | 58.3% | 58.6%
Other Austria | 580 | 547 | 65,882 | 52,496 | -239 | 194 | 194 | 0.9% | 1.0% | 43.8% | 33.5% | 35.5%
CEE | 2,152 | 2,090 | 180,360 | 168,196 | -2,449 | 779 | 768 | 1.2% | 1.2% | 117.2% | 36.2% | 36.7%
Czechia | 838 | 811 | 89,845 | 85,540 | -866 | 274 | 268 | 0.9% | 0.9% | 106.7% | 32.7% | 33.1%
Slovakia | 418 | 390 | 29,575 | 26,191 | -368 | 189 | 188 | 1.4% | 1.5% | 94.4% | 45.2% | 48.3%
Romania | 389 | 389 | 27,696 | 26,509 | -684 | 128 | 128 | 1.4% | 1.5% | 175.8% | 33.0% | 33.0%
Hungary | 132 | 125 | 12,276 | 10,254 | -156 | 45 | 40 | 1.1% | 1.2% | 124.8% | 34.3% | 32.1%
Croatia | 315 | 314 | 16,637 | 16,050 | -312 | 130 | 130 | 1.9% | 2.0% | 99.3% | 41.2% | 41.3%
Serbia | 61 | 60 | 4,332 | 3,652 | -63 | 13 | 13 | 1.4% | 1.6% | 104.8% | 21.1% | 21.4%
Other | 0 | 0 | 16,436 | 16,373 | -4 | 0 | 0 | 0.0% | 0.0% | >500.0% | 0.0% | 0.0%
Total | 6,025 | 5,918 | 398,766 | 370,152 | -4,627 | 2,917 | 2,906 | 1.5% | 1.6% | 78.2% | 48.4% | 49.1%

265
Non-performing credit risk exposure by business segment and
coverage by credit loss allowances and collateral

| Non-performing | Credit risk exposure | Credit loss allowances | Collateral for NPE | NPE ratio | NPE coverage ratio | NPE collateralisation ratio
in EUR million | Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI
Dec 25 |  |  |  |  |  |  |  |  |  |  |  |
Retail | 1,678 | 1,671 | 95,307 | 93,583 | -1,550 | 626 | 621 | 1.8% | 1.8% | 92.8% | 37.3% | 37.2%
Corporates | 1,968 | 1,834 | 137,957 | 123,691 | -1,481 | 873 | 865 | 1.4% | 1.5% | 80.7% | 44.4% | 47.2%
Group Markets | 0 | 0 | 24,206 | 14,047 | -24 | 0 | 0 | 0.0% | 0.0% | >500.0% | 0.0% | 0.0%
ALM & LCC | 24 | 24 | 73,108 | 72,917 | -28 | 9 | 9 | 0.0% | 0.0% | 116.5% | 39.8% | 39.9%
Savings Banks | 2,415 | 2,404 | 86,041 | 82,983 | -1,373 | 1,455 | 1,455 | 2.8% | 2.9% | 57.1% | 60.2% | 60.5%
GCC | 0 | 0 | 193 | 130 | -2 | 0 | 0 | 0.1% | 0.2% | >500.0% | 0.0% | 0.0%
Total | 6,086 | 5,933 | 416,812 | 387,350 | -4,457 | 2,963 | 2,950 | 1.5% | 1.5% | 75.1% | 48.7% | 49.7%
Dec 24 |  |  |  |  |  |  |  |  |  |  |  |
Retail | 1,650 | 1,645 | 86,964 | 85,711 | -1,555 | 619 | 615 | 1.9% | 1.9% | 94.5% | 37.5% | 37.4%
Corporates | 2,088 | 1,997 | 129,919 | 117,441 | -1,634 | 969 | 962 | 1.6% | 1.7% | 81.8% | 46.4% | 48.2%
Group Markets | 1 | 1 | 29,686 | 17,432 | -22 | 0 | 0 | 0.0% | 0.0% | >500.0% | 0.0% | 0.0%
ALM & LCC | 6 | 6 | 70,583 | 70,392 | -25 | 0 | 0 | 0.0% | 0.0% | 404.8% | 2.6% | 2.6%
Savings Banks | 2,279 | 2,268 | 81,479 | 79,099 | -1,389 | 1,329 | 1,329 | 2.8% | 2.9% | 61.2% | 58.3% | 58.6%
GCC | 0 | 0 | 136 | 76 | -3 | 0 | 0 | 0.3% | 0.5% | >500.0% | 0.0% | 0.0%
Total | 6,025 | 5,918 | 398,766 | 370,152 | -4,627 | 2,917 | 2,906 | 1.5% | 1.6% | 78.2% | 48.4% | 49.1%

43. Detailed analysis of loans and advances to customers
The tables on the following pages present the structure of the customer loan book, excluding loans to central banks and credit
institutions broken down by different categories. Loans and advances to customers comprise:
_ loans and advances to customers at FVPL;
_ loans and advances to customers at AC;
_ finance lease receivables;
_ trade and other receivables.
The presentation is by gross carrying amount excluding loan loss allowances and collateral.
266
Loans and advances to customers by geographical segment and currency

in EUR million | EUR | CEE-LCY | CHF | USD | Other | Total
Dec 25 |  |  |  |  |  |
Austria | 122,952 | 0 | 1,551 | 3,152 | 2,519 | 130,175
EBOe & Subs. | 42,764 | 0 | 532 | 37 | 11 | 43,345
Savings Banks | 59,924 | 0 | 862 | 18 | 1,839 | 62,643
Other Austria | 20,264 | 0 | 157 | 3,096 | 669 | 24,187
CEE | 48,750 | 56,574 | 32 | 238 | 101 | 105,695
Czechia | 9,246 | 39,966 | 26 | 132 | 68 | 49,437
Slovakia | 21,071 | 0 | 0 | 9 | 33 | 21,113
Romania | 4,026 | 10,739 | 0 | 54 | 0 | 14,820
Hungary | 1,786 | 5,112 | 0 | 5 | 0 | 6,904
Croatia | 10,718 | 0 | 5 | 36 | 0 | 10,759
Serbia | 1,903 | 757 | 0 | 1 | 0 | 2,661
Other | 28 | 42 | 0 | 0 | 43 | 114
Total | 171,730 | 56,616 | 1,583 | 3,389 | 2,664 | 235,983
Dec 24 |  |  |  |  |  |
Austria | 118,456 | 0 | 1,546 | 3,312 | 2,883 | 126,197
EBOe & Subs. | 41,814 | 0 | 628 | 50 | 18 | 42,509
Savings Banks | 57,403 | 0 | 898 | 65 | 1,621 | 59,988
Other Austria | 19,238 | 0 | 20 | 3,197 | 1,244 | 23,700
CEE | 45,788 | 49,868 | 10 | 190 | 78 | 95,933
Czechia | 8,933 | 35,036 | 2 | 77 | 65 | 44,113
Slovakia | 19,779 | 0 | 0 | 9 | 12 | 19,800
Romania | 3,815 | 10,116 | 0 | 85 | 0 | 14,015
Hungary | 1,747 | 4,060 | 0 | 7 | 0 | 5,815
Croatia | 9,917 | 0 | 7 | 11 | 0 | 9,935
Serbia | 1,599 | 655 | 0 | 1 | 0 | 2,255
Other | 11 | 14 | 0 | 0 | 29 | 54
Total | 164,256 | 49,882 | 1,556 | 3,501 | 2,989 | 222,184

‘CEE-LCY’ refers to the CEE geographical segment view where the local currency is the currency of the respective country (e.g.,
CZK in Czechia, RON in Romania etc.).
267
Loans and advances to customers by geographical segment and risk category

in EUR million | Low risk | Management attention | Substandard | Non- performing | Total
Dec 25 |  |  |  |  |
Austria | 108,256 | 13,690 | 4,576 | 3,652 | 130,175
EBOe & Subs. | 37,145 | 3,810 | 1,374 | 1,016 | 43,345
Savings Banks | 48,260 | 9,082 | 2,983 | 2,319 | 62,643
Other Austria | 22,851 | 798 | 220 | 318 | 24,187
CEE | 78,062 | 21,063 | 4,481 | 2,089 | 105,695
Czechia | 38,392 | 8,894 | 1,378 | 774 | 49,437
Slovakia | 15,296 | 3,860 | 1,501 | 456 | 21,113
Romania | 11,048 | 2,744 | 631 | 397 | 14,820
Hungary | 3,322 | 2,905 | 566 | 111 | 6,904
Croatia | 8,026 | 2,122 | 312 | 299 | 10,759
Serbia | 1,978 | 538 | 93 | 53 | 2,661
Other | 105 | 4 | 4 | 0 | 114
Total | 186,424 | 34,758 | 9,060 | 5,742 | 235,983
Dec 24 |  |  |  |  |
Austria | 104,481 | 13,443 | 4,606 | 3,668 | 126,197
EBOe & Subs. | 36,435 | 3,695 | 1,395 | 985 | 42,509
Savings Banks | 45,760 | 9,001 | 3,048 | 2,179 | 59,988
Other Austria | 22,286 | 747 | 163 | 504 | 23,700
CEE | 69,900 | 19,641 | 4,379 | 2,013 | 95,933
Czechia | 34,057 | 8,007 | 1,257 | 792 | 44,113
Slovakia | 14,284 | 3,738 | 1,395 | 382 | 19,800
Romania | 10,095 | 2,795 | 759 | 366 | 14,015
Hungary | 2,810 | 2,385 | 509 | 110 | 5,815
Croatia | 7,033 | 2,213 | 385 | 305 | 9,935
Serbia | 1,621 | 503 | 73 | 58 | 2,255
Other | 51 | 3 | 0 | 0 | 54
Total | 174,432 | 33,087 | 8,985 | 5,680 | 222,184

Loans and advances to customers by business segment and risk category

in EUR million | Low risk | Management attention | Substandard | Non- performing | Total
Dec 25 |  |  |  |  |
Retail | 67,426 | 13,324 | 3,872 | 1,659 | 86,280
Corporates | 68,409 | 12,192 | 2,117 | 1,741 | 84,459
Group Markets | 2,126 | 111 | 17 | 0 | 2,255
ALM & LCC | 183 | 44 | 67 | 23 | 317
Savings Banks | 48,260 | 9,082 | 2,983 | 2,319 | 62,643
GCC | 20 | 4 | 4 | 0 | 29
Total | 186,424 | 34,758 | 9,060 | 5,742 | 235,983
Dec 24 |  |  |  |  |
Retail | 61,432 | 12,328 | 3,656 | 1,630 | 79,046
Corporates | 64,854 | 11,705 | 2,161 | 1,865 | 80,585
Group Markets | 2,206 | 25 | 25 | 1 | 2,257
ALM & LCC | 172 | 25 | 95 | 6 | 298
Savings Banks | 45,760 | 9,001 | 3,048 | 2,179 | 59,988
GCC | 8 | 3 | 0 | 0 | 11
Total | 174,432 | 33,087 | 8,985 | 5,680 | 222,184

In the following tables, the non-performing loans and advances to customers divided by segments are contrasted with allowances
for customer loans (all allowances for loans and advances to customers within the scope of IFRS 9) and the collateral for non-
performing loans (NPL). The NPL ratio, the NPL coverage ratio (excluding collateral) and the NPL collateralisation ratio are also
included.
268
Non-performing loans and advances to customers by geographical segment
and coverage by loan loss allowances and collateral

| Non-performing | Customer loans | Loan loss allowances | Collateral for NPL | NPL ratio | NPL coverage ratio | NPL collateralisation ratio
in EUR million | Total | AC | Total | AC | AC | Total | AC | Total | AC | AC | Total | AC
Dec 25 |  |  |  |  |  |  |  |  |  |  |  |
Austria | 3,652 | 3,652 | 130,175 | 130,166 | -1,813 | 2,181 | 2,181 | 2.8% | 2.8% | 49.7% | 59.7% | 59.7%
EBOe & Subs. | 1,016 | 1,016 | 43,345 | 43,337 | -484 | 624 | 624 | 2.3% | 2.3% | 47.7% | 61.4% | 61.4%
Savings Banks | 2,319 | 2,319 | 62,643 | 62,642 | -1,227 | 1,441 | 1,441 | 3.7% | 3.7% | 52.9% | 62.2% | 62.2%
Other Austria | 318 | 318 | 24,187 | 24,187 | -102 | 116 | 116 | 1.3% | 1.3% | 32.1% | 36.5% | 36.5%
CEE | 2,089 | 2,084 | 105,695 | 104,179 | -2,183 | 736 | 731 | 2.0% | 2.0% | 104.8% | 35.2% | 35.1%
Czechia | 774 | 774 | 49,437 | 49,436 | -811 | 209 | 209 | 1.6% | 1.6% | 104.9% | 27.0% | 27.0%
Slovakia | 456 | 456 | 21,113 | 21,113 | -371 | 216 | 216 | 2.2% | 2.2% | 81.5% | 47.4% | 47.4%
Romania | 397 | 397 | 14,820 | 14,820 | -524 | 141 | 141 | 2.7% | 2.7% | 132.0% | 35.5% | 35.5%
Hungary | 111 | 106 | 6,904 | 5,390 | -133 | 44 | 38 | 1.6% | 2.0% | 125.5% | 39.1% | 36.2%
Croatia | 299 | 299 | 10,759 | 10,759 | -287 | 110 | 110 | 2.8% | 2.8% | 96.0% | 36.7% | 36.7%
Serbia | 53 | 53 | 2,661 | 2,661 | -57 | 17 | 17 | 2.0% | 2.0% | 107.3% | 31.8% | 31.8%
Other | 0 | 0 | 114 | 114 | -1 | 0 | 0 | 0.2% | 0.2% | >500.0% | 0.0% | 0.0%
Total | 5,742 | 5,736 | 235,983 | 234,459 | -3,998 | 2,917 | 2,912 | 2.4% | 2.4% | 69.7% | 50.8% | 50.8%
Dec 24 |  |  |  |  |  |  |  |  |  |  |  |
Austria | 3,668 | 3,668 | 126,197 | 126,170 | -1,856 | 2,105 | 2,105 | 2.9% | 2.9% | 50.6% | 57.4% | 57.4%
EBOe & Subs. | 985 | 985 | 42,509 | 42,502 | -468 | 608 | 608 | 2.3% | 2.3% | 47.5% | 61.7% | 61.7%
Savings Banks | 2,179 | 2,179 | 59,988 | 59,986 | -1,225 | 1,312 | 1,312 | 3.6% | 3.6% | 56.2% | 60.2% | 60.2%
Other Austria | 504 | 504 | 23,700 | 23,682 | -163 | 185 | 185 | 2.1% | 2.1% | 32.3% | 36.7% | 36.7%
CEE | 2,013 | 2,008 | 95,933 | 94,853 | -2,260 | 758 | 754 | 2.1% | 2.1% | 112.5% | 37.7% | 37.5%
Czechia | 792 | 792 | 44,113 | 44,113 | -807 | 262 | 262 | 1.8% | 1.8% | 101.9% | 33.1% | 33.1%
Slovakia | 382 | 382 | 19,800 | 19,800 | -352 | 187 | 187 | 1.9% | 1.9% | 92.3% | 49.1% | 49.1%
Romania | 366 | 366 | 14,015 | 14,015 | -618 | 127 | 127 | 2.6% | 2.6% | 168.8% | 34.6% | 34.6%
Hungary | 110 | 106 | 5,815 | 4,734 | -135 | 42 | 38 | 1.9% | 2.2% | 128.1% | 38.6% | 36.3%
Croatia | 305 | 305 | 9,935 | 9,935 | -287 | 126 | 126 | 3.1% | 3.1% | 94.2% | 41.5% | 41.5%
Serbia | 58 | 58 | 2,255 | 2,255 | -60 | 13 | 13 | 2.6% | 2.6% | 103.5% | 21.9% | 21.9%
Other | 0 | 0 | 54 | 54 | -2 | 0 | 0 | 0.4% | 0.4% | >500.0% | 0.0% | 0.0%
Total | 5,680 | 5,676 | 222,184 | 221,077 | -4,118 | 2,863 | 2,859 | 2.6% | 2.6% | 72.5% | 50.4% | 50.4%

Total gross customer loans, total non-performing loans and total collateral include both AC and FVPL portfolios.
The NPL ratio of loans and advances to customers is calculated by dividing the gross carrying amount of non-performing loans and
advances to customers by the total gross carrying amount of loans and advances to customers. Consequently, it differs from the
NPE ratio in section ‘Credit risk exposure’. Collaterals for non-performing loans mainly consist of real estates.
The NPL coverage ratio is calculated by dividing total loss allowances by the gross carrying amount of the non-performing loans
and advances to customers. Collateral is not considered.
269
Non-performing loans and advances to customers by business segment
and coverage by loan loss allowances and collateral

| Non-performing | Customer loans | Loan loss allowances | Collateral for NPL | NPL ratio | NPL coverage ratio | NPL collateralisation ratio
in EUR million | Total | AC | Total | AC | AC | Total | AC | Total | AC | AC | Total | AC
Dec 25 |  |  |  |  |  |  |  |  |  |  |  |
Retail | 1,659 | 1,653 | 86,280 | 84,764 | -1,498 | 623 | 618 | 1.9% | 2.0% | 90.6% | 37.6% | 37.4%
Corporates | 1,741 | 1,741 | 84,459 | 84,453 | -1,253 | 844 | 844 | 2.1% | 2.1% | 72.0% | 48.5% | 48.5%
Group Markets | 0 | 0 | 2,255 | 2,255 | -5 | 0 | 0 | 0.0% | 0.0% | >500.0% | 0.0% | 0.0%
ALM & LCC | 23 | 23 | 317 | 317 | -14 | 9 | 9 | 7.4% | 7.4% | 61.8% | 40.3% | 40.3%
Savings Banks | 2,319 | 2,319 | 62,643 | 62,642 | -1,227 | 1,441 | 1,441 | 3.7% | 3.7% | 52.9% | 62.2% | 62.2%
GCC | 0 | 0 | 29 | 29 | -1 | 0 | 0 | 0.9% | 0.9% | 479.7% | 0.0% | 0.0%
Total | 5,742 | 5,736 | 235,983 | 234,459 | -3,998 | 2,917 | 2,912 | 2.4% | 2.4% | 69.7% | 50.8% | 50.8%
Dec 24 |  |  |  |  |  |  |  |  |  |  |  |
Retail | 1,630 | 1,625 | 79,046 | 77,964 | -1,506 | 616 | 611 | 2.1% | 2.1% | 92.6% | 37.8% | 37.6%
Corporates | 1,865 | 1,865 | 80,585 | 80,560 | -1,370 | 935 | 935 | 2.3% | 2.3% | 73.5% | 50.2% | 50.2%
Group Markets | 1 | 1 | 2,257 | 2,257 | -6 | 0 | 0 | 0.0% | 0.0% | >500.0% | 0.0% | 0.0%
ALM & LCC | 6 | 6 | 298 | 298 | -10 | 0 | 0 | 2.1% | 2.1% | 156.4% | 2.4% | 2.4%
Savings Banks | 2,179 | 2,179 | 59,988 | 59,986 | -1,225 | 1,312 | 1,312 | 3.6% | 3.6% | 56.2% | 60.2% | 60.2%
GCC | 0 | 0 | 11 | 11 | -2 | 0 | 0 | 1.8% | 1.8% | >500.0% | 0.0% | 0.0%
Total | 5,680 | 5,676 | 222,184 | 221,077 | -4,118 | 2,863 | 2,859 | 2.6% | 2.6% | 72.5% | 50.4% | 50.4%

Loans and advances to customers at AC
and coverage by loan loss allowances by geographical segment and IFRS 9 treatment

| Loans to customers | Credit loss allowances | Coverage ratio
in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Not subject to IFRS 9 impairment | Stage 1 | Stage 2 | Stage 3 | POCI | Stage 2 | Stage 3 | POCI
Dec 25 |  |  |  |  |  |  |  |  |  |  |  |
Austria | 106,785 | 19,696 | 3,619 | 67 | 8 | -139 | -545 | -1,129 | 0 | 2.8% | 31.2% | 0.0%
EBOe & Subs. | 37,027 | 5,283 | 1,009 | 17 | 7 | -34 | -145 | -305 | 0 | 2.8% | 30.2% | 0.0%
Savings Banks | 47,872 | 12,429 | 2,296 | 45 | 1 | -85 | -377 | -765 | 0 | 3.0% | 33.3% | 0.0%
Other Austria | 21,886 | 1,983 | 314 | 4 | 0 | -20 | -23 | -59 | 0 | 1.2% | 18.8% | 0.0%
CEE | 93,047 | 8,898 | 1,961 | 273 | 1,515 | -295 | -598 | -1,235 | -56 | 6.7% | 62.9% | 20.4%
Czechia | 45,026 | 3,619 | 726 | 65 | 1 | -95 | -236 | -461 | -19 | 6.5% | 63.6% | 29.8%
Slovakia | 19,012 | 1,550 | 440 | 111 | 0 | -40 | -89 | -225 | -17 | 5.8% | 51.2% | 14.9%
Romania | 12,793 | 1,608 | 369 | 49 | 0 | -90 | -153 | -278 | -3 | 9.5% | 75.4% | 6.4%
Hungary | 4,486 | 786 | 95 | 23 | 1,514 | -19 | -44 | -64 | -6 | 5.6% | 67.0% | 26.5%
Croatia | 9,354 | 1,104 | 288 | 14 | 0 | -40 | -62 | -176 | -9 | 5.6% | 61.3% | 66.4%
Serbia | 2,376 | 232 | 44 | 10 | 0 | -12 | -14 | -29 | -1 | 6.0% | 67.0% | 10.8%
Other | 109 | 5 | 0 | 0 | 0 | 0 | -1 | 0 | 0 | 19.2% | 0.0% | 0.0%
Total | 199,941 | 28,599 | 5,581 | 340 | 1,524 | -434 | -1,144 | -2,364 | -56 | 4.0% | 42.4% | 16.4%
Dec 24 |  |  |  |  |  |  |  |  |  |  |  |
Austria | 100,740 | 21,739 | 3,628 | 63 | 27 | -127 | -591 | -1,137 | 0 | 2.7% | 31.3% | 0.0%
EBOe & Subs. | 35,711 | 5,804 | 968 | 19 | 8 | -31 | -140 | -298 | 0 | 2.4% | 30.8% | 0.0%
Savings Banks | 44,377 | 13,410 | 2,155 | 44 | 1 | -76 | -409 | -740 | 0 | 3.0% | 34.4% | 0.0%
Other Austria | 20,652 | 2,525 | 504 | 0 | 18 | -21 | -43 | -99 | 0 | 1.7% | 19.6% | 0.0%
CEE | 79,868 | 12,806 | 1,871 | 307 | 1,081 | -268 | -709 | -1,209 | -74 | 5.5% | 64.6% | 24.0%
Czechia | 37,296 | 6,002 | 722 | 93 | 0 | -85 | -249 | -448 | -26 | 4.1% | 62.0% | 27.6%
Slovakia | 17,278 | 2,032 | 367 | 123 | 0 | -33 | -113 | -189 | -17 | 5.6% | 51.5% | 14.0%
Romania | 11,559 | 2,069 | 356 | 32 | 0 | -92 | -219 | -300 | -6 | 10.6% | 84.2% | 18.9%
Hungary | 3,579 | 1,036 | 95 | 25 | 1,080 | -19 | -46 | -65 | -6 | 4.4% | 68.3% | 22.6%
Croatia | 8,234 | 1,393 | 292 | 16 | 0 | -29 | -69 | -178 | -11 | 4.9% | 61.2% | 67.0%
Serbia | 1,922 | 274 | 39 | 20 | 0 | -10 | -13 | -29 | -9 | 4.6% | 73.5% | 44.5%
Other | 51 | 2 | 0 | 0 | 0 | 0 | -2 | 0 | 0 | 75.6% | 98.2% | 0.0%
Total | 180,659 | 34,548 | 5,499 | 371 | 1,108 | -396 | -1,302 | -2,346 | -74 | 3.8% | 42.7% | 19.9%

270
Stage 1 and Stage 2 comprise not credit impaired loans and advances while Stage 3 includes credit impaired loans and advances.
POCI (purchased or originated credit impaired) consists of loans already credit impaired when purchased or originated.
The defaulted part of POCI loans amounted to EUR 156 million (2024: EUR 177 million), the non-defaulted part to EUR 184
million (2024: EUR 194 million).
Loans and advances to customers at AC
and coverage by loan loss allowances by business segment and IFRS 9 treatment

| Loans to customers | Loan loss allowances | Coverage ratio
in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Not subject to IFRS 9 impairment | Stage 1 | Stage 2 | Stage 3 | POCI | Stage 2 | Stage 3 | POCI
Dec 25 |  |  |  |  |  |  |  |  |  |  |  |
Retail | 75,849 | 7,212 | 1,614 | 89 | 1,516 | -163 | -424 | -896 | -15 | 5.9% | 55.5% | 16.4%
Corporates | 73,779 | 8,821 | 1,647 | 206 | 7 | -184 | -335 | -693 | -41 | 3.8% | 42.1% | 19.9%
Group Markets | 2,147 | 107 | 0 | 0 | 0 | -2 | -3 | 0 | 0 | 2.6% | 16.2% | 0.0%
ALM & LCC | 270 | 24 | 23 | 0 | 0 | 0 | -4 | -10 | 0 | 16.8% | 42.9% | 77.8%
Savings Banks | 47,872 | 12,429 | 2,296 | 45 | 1 | -85 | -377 | -765 | 0 | 3.0% | 33.3% | 0.0%
GCC | 24 | 5 | 0 | 0 | 0 | 0 | -1 | 0 | 0 | 19.2% | 0.0% | 0.0%
Total | 199,941 | 28,599 | 5,581 | 340 | 1,524 | -434 | -1,144 | -2,364 | -56 | 4.0% | 42.4% | 16.4%
Dec 24 |  |  |  |  |  |  |  |  |  |  |  |
Retail | 67,296 | 8,990 | 1,579 | 99 | 1,082 | -148 | -428 | -909 | -20 | 4.8% | 57.6% | 20.3%
Corporates | 66,648 | 11,927 | 1,758 | 227 | 25 | -169 | -456 | -691 | -54 | 3.8% | 39.3% | 23.7%
Group Markets | 2,048 | 208 | 1 | 0 | 0 | -2 | -3 | 0 | 0 | 1.6% | 0.4% | 0.0%
ALM & LCC | 281 | 11 | 6 | 0 | 0 | 0 | -4 | -5 | 0 | 33.0% | 89.7% | 0.0%
Savings Banks | 44,377 | 13,410 | 2,155 | 44 | 1 | -76 | -409 | -740 | 0 | 3.0% | 34.4% | 0.0%
GCC | 9 | 2 | 0 | 0 | 0 | 0 | -2 | 0 | 0 | 75.6% | 98.2% | 0.0%
Total | 180,659 | 34,548 | 5,499 | 371 | 1,108 | -396 | -1,302 | -2,346 | -74 | 3.8% | 42.7% | 19.9%

The NPL exposures above exclude any write-offs recognised in accordance with IFRS 9. Erste Group distinguishes between
contractual write-offs (debt forgiveness towards the defaulted client, either unconditional or subject to conditions) and technical
write-offs (claim removal from the books due to no reasonable expectation of recovery, whereby the legal claim towards the
customer remains). Both types of write-offs have as a pre-condition that all reasonable workout measures and late collections tools
have been applied for optimal recovery. In case of collateralised loans, write-off prior to the realisation of the collateral is not
allowed unless specific circumstances apply. Additional technical write-off triggers include enforcement, worthlessness of claim/
collateral, legally binding bankruptcy/liquidation or other economic loss of the rights to claim/sale. The amount written off during
2025, which is still subject to enforcement activity, totals EUR 388 million (2024: EUR 178 million).
44. Market risk
Market risk is the risk of loss that may arise due to adverse changes in market prices and to the parameters derived from them.
These market value changes might appear in the profit and loss account, in the statement of comprehensive income or in hidden
reserves. At Erste Group, market risk is divided into interest rate risk; credit spread risk, currency risk, equity risk, commodity risk
and volatility risk. This concerns both trading and banking book positions.
METHODS AND INSTRUMENTS EMPLOYED
At Erste Group, potential losses that may arise from market movements are assessed using the value at risk (VaR) methodology.
The VaR describes what level of losses may be expected as a maximum at a defined probability – the confidence level – within a
certain holding period of the positions under historically observed market conditions.
The VaR calculation for the trading book is based on the methodology of historical simulation with a one-sided confidence level of
99%, a holding period of one day and a look back period of two years.
Back-testing for the trading book is used to constantly monitor the validity of the internal market risk model. This process is
conducted with a one-day delay to monitor if the model projections regarding losses have actually materialised. At a confidence
level of 99%, the actual loss on a given day should exceed the VaR estimate statistically only two to three times a year (1% of around
250 workdays).
271
The VaR calculation for banking book positions (BB-VaR) is based on the methodology used for ICAAP calculation of Erste Group
where 250.000 historical scenarios (starting with 2010) are calculated with a theoretical holding period of 1 year and a confidence
level of 99.90%. The same calculation is used for the BB-VaR with a 1 day holding period and a 99% confidence level, consistent
with the trading book methodology. The results of both calculations, ICAAP and BB-VaR are presented in the Group ALCO to the
Management Board.
A known limitation of the VaR approach is that on the one hand, it estimates losses only up to the confidence level and on the other
hand, the model considers only those market scenarios observed within the look-back period to calculate the VaR for the current
position of the bank. To address this limitation and to investigate any extreme market situations not reflected in the VaR approach,
stress tests are conducted at Erste Group. These stress tests are designed to cover market movements of low probability and high
impact.
The stress tests are carried out according to several methods: for the trading book, a stressed VaR (SVaR) is derived from the normal
VaR calculation. Instead of simulating only over the two most recent years, an analysis of a much longer period is carried out to
identify a one-year period that constitutes a relevant period of stress for the current portfolio mix. According to the regulatory
framework, that one-year stressed period is used to calculate a VaR with a 99% confidence level. This enables Erste Group to hold
sufficient own funds available for the trading book even in periods of elevated market volatility, while also enabling it to
incorporate these resulting effects into the management of trading positions.
Standard scenarios are also defined, in which selected market risk factors are subject to extreme movements. Such scenarios are
calculated at Erste Group for interest rates, stock prices, exchange rates and volatilities. Historic scenarios are a modification of the
concept of standard scenarios. In this case, risk factor movements modelled after certain crisis events such as ‘Covid-19 crisis’ or
‘Lehman bankruptcy’ form the basis of the stress calculation. In addition, hypothetical stress test scenarios are defined based on
analysis of the current economic environment and projections of adverse developments of key market risk drivers. These analyses
are made available to the Market Risk Committee within the scope of the regular market risk reporting. Banking book positions are
considered in the comprehensive stress test.
METHODS AND INSTRUMENTS OF RISK MITIGATION
At Erste Group, market risks are controlled in the trading book by setting several layers of limits. The overall limit based on risk-
weighted assets (RWAs) for the trading book is allocated by the Management Board in the Risk Appetite Statement while
considering the risk-bearing capacity and projected earnings. A further breakdown in VaR, SVaR and sensitivity limits is done by
the Market Risk Committee on the basis of a proposal from the Trading Book Risk Management unit.
All market risk activities of the trading book are assigned risk limits which are entirely consistent with the overall RWA limit. The
RWA limit is broken down into dedicated VaR and SVaR limits and assigned in a top-down procedure to the individual trading
units. Additionally, in a bottom-up procedure, sensitivity limits are assigned on trading desk level to control exposures to individual
risk drivers and ensure sufficient diversification. These are then aggregated and applied as a second-limit layer to the VaR and
SVaR limits.
Limit compliance is verified at two levels: by the appropriate local risk management unit and by the Trading Book Risk
Management unit. The monitoring of sensitivity limits is performed on both intraday and end-of-day basis. On demand, limit
reports can also be triggered by the trading units or risk management on an ad-hoc basis.
Trading book VaR and SVaR are calculated daily at group level and reported to all key stakeholders including the relevant board
members. In case of a limit breach, the escalation procedure ensures the timely remediation of the limit breach.
In the Banking Book, limits are implemented top-down from Group to individual entity covering change in economic value and in
net interest income as well as limits on market risk Pillar 2 RWA. Limit monitoring is done by respective local risk management
and Group Banking Book Risk Management. A dedicated escalation procedure is in place in case of limit breaches.
ANALYSIS OF MARKET RISK
The following tables show the VaR amounts at the 99% confidence level using equally weighted market data and with a holding
period of one day. The figures do not cover exposures which are accounted for in the standardized approach (e.g., FX risks in the
banking book, specific position risk):
272
Value at Risk of banking book and trading book

in EUR thousand | Total | Interest | Credit spread | Currency | Shares | Commodity | Volatility
Dec 25 |  |  |  |  |  |  |
Erste Group | 93,713 | 88,697 | 55,462 | 803 | 1,249 | 333 | 594
Banking book | 91,015 | 86,411 | 55,462 | - | - | - | -
Trading book | 2,698 | 2,285 | - | 803 | 1,249 | 333 | 594
Dec 24 |  |  |  |  |  |  |
Erste Group | 118,670 | 119,568 | 18,646 | 731 | 1,060 | 197 | 648
Banking book | 114,849 | 116,212 | 18,646 | - | - | - | -
Trading book | 3,821 | 3,356 | - | 731 | 1,060 | 197 | 648

As of year-end 2025 the number of VaR backtesting outliers is one in the trading book and hence the regulatory multiplier has a
value of 3.0. This is marginally higher compared to the zero outliers at year-end 2024. The outlier was caused by major market
movements across all asset classes in response to worse than expected employment data in the US in the context of trade tariff
tensions. The postponed implementation of the new regulatory framework for market risk under the CRR3 to 2027 means that the
internal model will be used also in 2026. VaR figure for Banking Book decreased due to lower duration investments on asset side
and higher inflow of demand deposits. For year end 2025 methodological changes were performed. Scope of bonds subject to credit
spread risk has been extended from fair value bond portfolio to also including amortised cost bond portfolio (closing of SREP
finding) and treatment of margins in cashflows was aligned with the methodology for the Supervisory Outlier Test from Economic
Value Perspective (carve out of margins).
Interest rate risk in the banking book (IRRBB)
Interest rate risk is the current and prospective risk of a negative impact to the institution’s economic value of equity, or to the
institution’s net interest income, taking market value changes into account as appropriate, which arise from adverse movements in
interest rates affecting interest rate sensitive instruments, including gap risk, basis risk and option risk.
To identify interest rate risk, all financial instruments, including off-balance instruments are used to calculate the impact of certain
interest rate scenarios on their economic value and their net interest income. Limits and thresholds are implemented for both
aspects of the IRRBB, the change in economic value as well as the change in net interest income. Positions without contractually
defined maturity or repricing structures, such as demand deposits or overdrafts are modelled accordingly. For positions where the
customer has the right to prepay his debt prepayment models are applied.
During 2025 Erste Group has updated its behavioural models according to the internal Model Risk Management Policy and
regulatory expectations. Among others, this update comprises enlargement of model coverage and extension of data histories,
reflecting the recent developments of interest rates.
For internal risk calculations and for the regulatory interest rate risk measures, the maximum downward shock is floored according
to the Article 4 (k) of the EBA Regulatory Technical Standard on the supervisory outlier tests (EBA/RTS/2022/10) and the Article 3
(7) of the Commission Delegated Regulation (EU) 2024/856. With increasing yield curves, especially in EUR, USD and CZK, these
embedded floors have become less relevant.
Exchange rate risk
Risk from open foreign exchange positions is the risk related to exchange rates that derives from the mismatch between assets and
liabilities, or from currency-related financial derivatives. In the trading book, these risks might originate from customer-related or
trading operations and are monitored and managed daily. Foreign currency exposure is subject to regulatory and internal limits.
The internal limits for the trading book are set by the Market Risk Committee.
Erste Group separately measures and manages other types of risks relating to the Group’s balance sheet and earnings structure.
The translation risk related to the valuation of the balance sheet items, earnings, dividends and participations/net investments in
local currency or foreign exchange has an impact on consolidated earnings and consolidated capital. Erste Group also reduces the
negative impact related to volatility of foreign exchange rates on asset performance (for example because of foreign exchange
lending in the CEE countries that was stopped for clients not having sufficient regular income in the respective loan currency).
In order to manage its multi-currency earnings structure, Erste Group regularly discusses hedging opportunities and takes
decisions in the Group Asset Liability Committee (ALCO). Balance Sheet Management (BSM) uses as the usual source of
information the current financial results and the financial budget prepared for the upcoming period to obtain as much information
as possible on the future foreign currency cash flows. The proposal, which mainly includes the volume, hedging level, hedge ratio
and timeline of the hedging, is submitted by BSM to ALCO. The impact of translation on consolidated capital is monitored and
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reported to ALCO. The ALCO decisions are then executed by BSM and the implementation status is reported on a monthly basis to
ALCO.
The following table shows the largest open foreign currency positions of Erste Group. The inclusion of structural FX positions in
the table below is in line with the EBA guideline on the treatment of structural FX (EBA/GL/2020/09) which requires banks to
calculate own funds for FX positions resulting from participations in foreign subsidiaries. The inclusion of structural FX positions
leads to overall significantly higher open positions in the core market currencies. In 2025 ALCO approved partial hedging of the
structural FX positions in CZK and HUF. The hedges are executed using a combination of derivatives and spot positions and are
recorded as net investment hedges.
Open foreign currency positions

in EUR thousand | Open Position
Dec 25 |
RON | 1,763,722
CZK | 825,137
RSD | 533,618
HUF | 404,604
MKD | 323,630
BAM | 255,484
PLN | 17,053
CHF | 13,434
USD | 8,593
CNH | 6,472
Dec 24 |
CZK | 2,431,289
RON | 1,659,256
HUF | 768,588
RSD | 495,111
MKD | 294,404
BAM | 226,908
GBP | 82,203
CHF | 33,372
PLN | 25,795
TRY | 8,541

Credit spread risk
Credit spread risk is the risk driven by changes in the market perception about the price of credit risk, liquidity premium and
potentially other components of credit-risky instruments. Erste Group is exposed to credit spread risk with respect to its securities
portfolio, both in the trading as well as in the banking book.
For the trading book, credit spread risk for government bonds is part of the general market risk covered by VaR and SVaR.
Corporate bonds are allocated to benchmark spread curves depending on sector, rating and currency as part of the general risk
covered by VaR and SVaR. The issuer specific risk is covered by the standardised approach for Pillar 1 of regulatory capital
requirements. For the issuer specific risk of the trading book in Pillar 2, the spread risk is broken down into a systematic and a
residual part risk and report-ed on an aggregated level.
Quantifying the credit spread risk of the securities in the banking book is based on a historical simulation. The maximum
(hypothetical) drawdown that can be attributed to credit related risk factors over a one-year horizon is calculated. It is based on
credit spread sensitivities (CR01) and the risk factors used are mainly z-spreads for sovereigns and corporate benchmark bond
spreads for financials and corporates. The portfolio included into the calculation comprises all bonds on the asset and liability side.
The resulting amount is used as part of the ICAAP calculations to determine the Pillar 2 capital consumption of the banking book
portfolio.
For banking book positions, the impacts of changes in credit spreads on the economic value and net interest income are
additionally assessed through rating-dependent widening and narrowing shock scenarios derived from historical data.
Hedging
Banking book market risk management consists of optimising Erste Group’s risk position by finding the proper trade-off between
the economic value of the balance sheet and forecasted earnings. ALM is responsible for the interest rate and FX risk management
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of the banking book and respective hedging actions. ALCO is informed by BSM on a regular basis about the interest rate risk of the
banking book and required approvals (e.g., for strategic positions, the BSM strategy, investments, etc.) by the members of the
ALCO.
To achieve the goals of risk management, hedging activities focus on the two main control variables: net interest income and
market value of equity risk. In a broader sense, hedging refers to an economic activity that mitigates risk but does not necessarily
qualify for hedge accounting under IFRS rules. IFRS hedge accounting is applied, if possible, to avoid accounting mismatches due
to hedging activity. Within the scope of IFRS-compliant hedge accounting, fair value hedges, cash flow and net investment hedges
are used. In addition, the fair value option is used for hedging the market risk from the economic perspective. Most of the hedging
within Erste Group concerns hedging of interest rate risk. The remainder is hedging of foreign exchange rate risk using net
investment hedges.
45. Liquidity risk
LIQUIDITY STRATEGY
In 2025, customer deposits remained the primary source of funding for Erste Group. The growth in loan volume was financed by
inflows of customer deposits and issued securities.
With regards its own issuance, Erste Group Bank AG issued EUR 5.2 billion in bonds in 2025 (2024: EUR 4.5 billion). EUR 2.1
billion (2024: EUR 1.4 billion) was collected by issuing senior preferred bonds, of which EUR 1.5 billion (2024: EUR 750 million)
was printed via 2 benchmark sized transactions. Mortgage bonds issued in amount of EUR 2.2 billion (2024: EUR 2.2 billion),
whereby Tier 2 subordinated debt issuance amounted to EUR 860 million (2024: EUR 990 million). There were no repurchases in
2025 (2024: EUR 9.2 million). The average tenor of all new issues in 2025 is approximately 6.8 years (2024: 7.2 years).
LIQUIDITY METRICS AND REPORTS
The liquidity risk in Erste Group is defined in line with the principles set out by the Basel Committee on Banking Supervision as
well as the European and Austrian regulations Regulation (EU) No 575/2013 (CRR), Regulation (EU) 2015/61 and the Council and
the ‘Kreditinstitute-Risikomanagement-Verordnung - KI-RMV’ in their current versions. Accordingly, a distinction is made
between market liquidity risk, which is the risk that the group entities cannot easily offset or close a position at the market price
because of inadequate market depth or market disruption and funding liquidity risk, which is the risk that the banks in the group
will not be able to meet efficiently both expected and unexpected current and future cash flow and collateral needs without
affecting either daily operations or the financial condition of the group members.
Funding liquidity risk is further divided into insolvency risk and structural liquidity risk. The former is the short-term risk that
current or future payment obligations cannot be met in full and on time in an economically justified manner, while structural
liquidity risk is the long-term risk of losses due to a change in the Group’s own refinancing cost or spread.
The regulatory liquidity ratios LCR and NSFR are well implemented in Erste Group which uses the above-mentioned technical
environment to calculate the LCR according to Regulation (EU) No 2015/61 as well as the NSFR according to the Regulation (EU)
No 575/2013 in their currently valid versions.
Erste Group calculates LCR daily on solo and group level and reports it monthly to the authorities. Furthermore, the LCR is part of
the internal Risk Appetite Statement (RAS). LCR limits are defined in the RAS targeting to be well above the regulatory
requirement of 100%. Legal lending limits exist in all CEE countries where Erste Group is represented. As they restrict liquidity
flows between Erste Group’s subsidiaries in different countries they are considered for the assessment of liquidity risk in the
survival period model as well as in the calculation of the LCR at group level.
The NSFR is calculated monthly on solo and group level and is reported on a quarterly basis to the authorities. Same as the LCR,
the NSFR is part of the internal RAS and limits are defined in the RAS targeting to be well above the regulatory requirement of
100%.
Short-term insolvency risk is monitored by calculating the survival period analysis (SPA) on both entity and group levels. This
analysis determines the maximum period during which the entity can survive a set of defined scenarios, including a severe
combined market and idiosyncratic crisis while relying on its pool of liquid assets. The monitored worst-case scenario simulates
very limited money market and capital market access and at the same time significant client deposit outflows. Furthermore, the
simulation assumes increased drawdown on guarantees and loan commitments dependent on the type of customer, as well as the
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potential out-flows from collateralised derivative transactions estimating the effect of collateral outflows in the case of adverse
market movements. The SPA is covering a stress horizon of up to 12 months. It is calculated monthly at entity and group level.
Structural liquidity is monitored with the internal Structural Liquidity Ratio (STRL), depicting the going concern maturity
mismatches of the subsidiaries and the group. The STRL is calculated monthly both on solo entity level and on group level.
All above mentioned reports (LCR, NSFR, SPA and STRL) are reported to the Operational Liquidity Committee (OLC) as well as to
the Management Board during the Group ALCO.
Additionally, concentration risks in the funding structure and ‘Counterbalancing Capacity’ (CBC) are regularly monitored and
reported to the regulator. Erste Group’s funds transfer pricing (FTP) system has also proven to be an efficient tool for structural
liquidity risk management.
METHODS AND INSTRUMENTS OF RISK MITIGATION
Apart from the reporting of liquidity metrics to the OLC and the Group ALCO, another important instrument for managing the
liquidity risk within Erste Group and in relation to its subsidiaries is the FTP system. Important information for liquidity
management can be obtained by the process of planning funding needs. Therefore, a detailed overview of funding needs is prepared
on a quarterly basis for the planning horizon across Erste Group.
The Comprehensive Contingency Plan of the Erste Group ensures the necessary coordination of all parties involved in the liquidity
management process in case of crisis and is reviewed on a regular basis. The contingency plans of the subsidiaries are coordinated
as part of the plan for Erste Group.
ANALYSIS OF LIQUIDITY RISK
In Erste Group, the liquidity risk is analysed by the following methods.
Liquidity coverage ratio. Erste Group uses the regulatory LCR for internal monitoring and steering of the liquidity position. To
keep the LCR according LCR DA above both limits, the regulatory limit and the internal limit, Erste Group closely monitors its
short-term liquidity inflows and outflows as well as its available counterbalancing capacity (CBC).
Erste Group has continued to actively increase their liquidity buffer resulting in a higher LCR ratio in comparison to previous year.
Increase is mainly due to the increase of Level 1 central government assets and higher volume of excess minimum reserve. Thus,
Erste Group is having a more than comfortable buffer well above internal and external limits. Following the closure of findings
from the 2024 liquidity inspection, parts of the LCR methodology have been adjusted accordingly. This adjustment has resulted in a
slight downward impact, effective from August 2025.
Liquidity coverage ratio

in EUR million | Dec 24 | Dec 25
Liquidity buffer | 79,810 | 90,532
Net liquidity outflow | 52,642 | 55,588
Liquidity coverage ratio | 151.6% | 162.9%

Structural liquidity gaps. The long-term liquidity position is managed using structural liquidity gaps based on contractual and
partially behavioural cash flows of all liquidity relevant components of the balance sheet (on-balance and off-balance). This
liquidity position is calculated for each material currency.
Cash flows are broken down by contractual maturities in accordance with the amortisation schedule and arranged in maturity
ranges. All customer products without contractual maturities (such as demand deposits and overdrafts) are included according to a
going concern maturity profile using model based on statistically observed client behaviour. The increased liquidity buffer also has
a positive impact on the first year time band of the structural liquidity gap.
Structural liquidity gap

| 0-12 months | 1-3 years | 3-5 years | > 5 years
in EUR million | Dec 24 | Dec 25 | Dec 24 | Dec 25 | Dec 24 | Dec 25 | Dec 24 | Dec 25
Liquidity gap | 24,319 | 32,057 | 3,113 | -2,579 | 4,103 | 3,050 | -36,159 | -40,115

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An excess of assets over liabilities is indicated by a positive value, while an excess of liabilities over assets is indicated by a negative
value. The cash inflows from liquid securities amounting to EUR 67 billion (2024: EUR 64 billion), which are accepted as collateral
by the central banks to which Erste Group has access, are considered in the first-time bucket rather than considering them at their
contractual maturity.
Counterbalancing capacity. Erste Group regularly monitors its counterbalancing capacity, which consists of cash, excess
minimum reserves at the central banks as well as unencumbered central bank eligible assets and other liquid securities, including
impacts from repos, reverse repos and securities lending transactions. These assets can be mobilised in the short term to offset
potential cash out-flows in a crisis situation.
Term structure of counterbalancing capacity

in EUR million | < 1 month | 1-12 months | 1-5 years | > 5 years
Dec 25 |  |  |  |
Cash, excess reserve | 22,139 | 0 | 0 | 0
Liquid assets | 62,236 | -10,489 | -30,509 | -21,238
Other central bank eligible assets | 16,145 | 1,283 | -9,769 | -7,659
Thereof retained covered bonds | 12,522 | 1,165 | -10,178 | -3,510
Thereof credit claims | 3,880 | 0 | 0 | -3,880
Counterbalancing capacity | 100,520 | -9,206 | -40,278 | -28,897
Dec 24 |  |  |  |
Cash, excess reserve | 19,927 | 0 | 0 | 0
Liquid assets | 57,497 | -8,783 | -28,657 | -20,057
Other central bank eligible assets | 14,872 | 691 | -11,525 | -4,038
Thereof retained covered bonds | 9,877 | 1,403 | -10,418 | -862
Thereof credit claims | 4,319 | 0 | 0 | -4,319
Counterbalancing capacity | 92,296 | -8,092 | -40,182 | -24,095

The figures above show the total amount of potential liquidity available for the group in a going concern situation considering the
applicable central bank haircuts. In a crisis situation, adverse market movements can decrease this amount. The initial
counterbalancing capacity available at group level is reduced by additional stressed haircuts. Negative figures are maturing
positions of the counterbalancing capacity. Positive figures after first time bucket are positions not immediately available as
counterbalancing capacity.
The growth in counterbalancing capacity is primarily driven by higher volumes of highly liquid Level 1 assets, increased excess
minimum reserves, and a higher amount of issued retained covered bonds. Consequently, counterbalancing capacity volume even
further increased at an already high level, ensuring a comfortable liquidity buffer for Erste Group.
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Financial liabilities. The table below shows the undiscounted principal cash flows for all financial liabilities and it contains
interest cash flows.
Financial liabilities

in EUR million | Carrying amounts | Contractual cash flows | < 1 month | 1-12 months | 1-5 years | > 5 years
Dec 25 |  |  |  |  |  |
Non-derivative liabilities | 324,781 | 340,028 | 252,380 | 17,425 | 44,630 | 25,593
Deposits by banks | 16,919 | 23,375 | 8,561 | 2,821 | 8,070 | 3,923
Customer deposits | 252,991 | 255,050 | 239,106 | 7,805 | 6,256 | 1,883
Debt securities in issue | 49,358 | 55,267 | 4,516 | 6,495 | 28,757 | 15,499
Subordinated liabilities | 5,514 | 6,337 | 197 | 305 | 1,547 | 4,288
Derivative liabilities | 1,262 | 4,002 | 606 | 664 | 2,566 | 167
Derivatives liabilities with netted Cash Flows | - | 3,486 | 572 | 422 | 2,353 | 138
Derivatives liabilities with gross Cash Flow (net) | - | 517 | 33 | 242 | 213 | 28
Outflows | - | 68,048 | 53,184 | 8,666 | 4,960 | 1,237
Inflows | - | -67,531 | -53,151 | -8,424 | -4,747 | -1,209
Contingent liabilities | - | 79,557 | 79,557 | - | - | -
Financial guarantees | - | 7,766 | 7,766 | - | - | -
Commitments | - | 71,792 | 71,792 | - | - | -
Other financial liabilities | 2,564 | 2,564 | 2,564 | - | - | -
Total | 328,608 | 426,152 | 335,107 | 18,089 | 47,196 | 25,759
Dec 24 |  |  |  |  |  |
Non-derivative liabilities | 314,801 | 326,531 | 246,509 | 17,033 | 41,005 | 21,984
Deposits by banks | 21,261 | 24,272 | 11,833 | 2,600 | 6,203 | 3,636
Customer deposits | 241,651 | 244,305 | 227,856 | 9,992 | 5,051 | 1,406
Debt securities in issue | 46,494 | 51,779 | 6,650 | 4,014 | 28,144 | 12,970
Subordinated liabilities | 5,395 | 6,175 | 169 | 427 | 1,608 | 3,971
Derivative liabilities | 1,343 | 3,804 | 327 | 687 | 2,581 | 208
Derivatives liabilities with netted Cash Flows | - | 2,981 | 121 | 523 | 2,171 | 166
Derivatives liabilities with gross Cash Flow (net) | - | 822 | 206 | 164 | 410 | 42
Outflows | - | 52,221 | 36,478 | 5,743 | 8,809 | 1,192
Inflows | - | -51,399 | -36,271 | -5,579 | -8,399 | -1,150
Contingent liabilities | - | 73,137 | 73,137 | - | - | -
Financial guarantees | - | 7,431 | 7,431 | - | - | -
Commitments | - | 65,706 | 65,706 | - | - | -
Other financial liabilities | 1,484 | 1,484 | 1,484 | - | - | -
Total | 317,628 | 404,956 | 321,458 | 17,719 | 43,587 | 22,192

As of year-end 2025, the currency composition of the non-derivative liabilities consisted of approximately 71% EUR, 18% CZK, 4%
RON, 3% USD and 4% in other currencies (2024: 71% EUR, 18% CZK, 4% RON, 3% USD and 4% in other currencies).
Besides the contingent liabilities from unused credit lines and guarantees, material potential cash outflow is calculated from the
collateralised derivative transactions for the stress testing, following a historical lookback approach, which amounted to EUR 1
billion (2024: EUR 1 billion) in the severe combined idiosyncratic and market crisis scenario as of 31 December 2025.
As of 31 December 2025 , the volume of customer deposits due on demand amounted to EUR 185 billion (2024: EUR 171 billion).
According to customer segments, the customer demand deposits are composed as follows: 65% private individuals, 19% small and
medium-sized enterprises, 8% large corporates, 5% public sector and 3% non-banking financial institutions (2024: 65% private
individuals, 19% small and medium-sized enterprises, 8% large corporates, 5% public sector and 3% non-banking financial
institutions).
46. Operational risk
Pursuant to point (52) of Article 4(1) of regulation (EU) No 575/2013 (CRR), Erste Group defines operational risk (OpRisk) as risk
of loss resulting from inadequate or failed internal processes, people and systems or from external events, including, but not limited
to, legal risk, model risk or information and communication technology (ICT) risk, but excluding strategic and reputational risk.
Non-Financial Risks (NFR) comprise both operational and reputational risks. Erste Group’s operational risk appetite sets the limits
and escalation levels in line with the group risk strategy for risk-taking as a consequence of doing business. The OpRisk Framework
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is a modular, interrelated and comprehensive approach integrated into the banks and the group’s steering and risk management
system. It is designed to fulfil internal risk management and external regulatory requirements.
ORGANISATION AND GOVERNANCE
The roles and responsibilities for OpRisk management is defined by the ‘Three Lines of Defence’ model. The day-to-day
management of operational risk is the primary responsibility of Business Line Management (BLM). BLM is responsible for
identifying, assessing and managing the risks residual in the products, activities, processes and systems on an ongoing basis by
using operational risk management instruments. Operational and Non-Financial Risk independently oversees the Group-wide
management of operational risks, identifies and reports risks on the Group-level. The NFR function defines the NFR framework,
promotes a consistent application across the group and maintains the operational risk capital requirement calculation under
Standardised Measurement Approach .
Regional Operational Conduct Committee (ROCC) decides on strategic steering topics based on NFR reporting, serves as a
sounding board for risk decisions concerning non-financial risks , environmental, social and governance impacts and decides on
escalations to the Holding Board of Erste Group. Further on, it acts as Reputational Risk, Operational Resilience and ESG
Committee.
NON-FINANCIAL RISK FRAMEWORK AND MEASUREMENT
OpRisk framework consists of various elements. Risk identification takes place through the collection of internal loss data and Key
Risk Indicators (KRI) to measure the risk level changes. Risk indicators are reviewed periodically to ensure early detection of risk
potentials to cause losses. The risk identification process includes an on-going mechanism to identify new sub-risk types, risk
drivers and emerging risks. Risk evaluation is an ongoing process in which the Business Line Management (BLM) proactively
identifies and analyses relevant non-financial risks and assesses the effectiveness of the controls to mitigate those risks, both for the
run and change the bank processes (e.g., new product approval, third-party service providers). BLM evaluates the risks in line with
the risk appetite and reports the residual risks to senior management or Risk Committees for risk response. The acceptance level of
NFR is managed by using the Group Operational Risk Scaling Matrix which is setting the limits of the residual operational risk
tolerated by Erste Group. Risk monitoring via corrective measures is performed on a regular basis. Regular risk reporting provides
detailed information to business and risk management units, senior management and the board of directors, most importantly the
quarterly Group Risk Re-port, which informs on recent losses, loss trends, qualitative information derived from Risk Control Self-
Assessments, NFR decisions, risk indicators, key ratios and the own funds requirements for operational risk. Small entities
implemented internal loss data collection, new product approval and third party risk management instruments following the
proportionality principle.
Erste Group measures the capital requirements for operational risk using a non-model-based approach for the calculation of the
own funds requirements in line with the Regulation (EU) 575/2013 (CRR3). Under the Standardised Measurement Approach the
Business Indicator Component (BIC) is calculated by multiplying the Business Indicator (BI) by a set of regulatory determined
marginal coefficients in the applicable BI ranges. The BI is a financial statement proxy of operational risk exposure.
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Non-current assets and other investments
47. Property, equipment and investment properties
PROPERTY AND EQUIPMENT
Depreciation of property and equipment is calculated using the straight-line method to write down the cost of property and
equipment to their residual values over their estimated useful lives. Depreciation is recognised in the statement of income in the
line item ‘Depreciation and amortisation’ and impairment in the line item ‘Other operating result’.

| Useful lives in years
Buildings | 30-50
Re-buildings on own and foreign real estates | 15-50
Office furniture and equipment | 4-10
Passenger cars | 4-8
Computer hardware | 4-6

Land is not depreciated.
Any impairment losses including their reversals and gain or loss arising on disposal of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) are recognised in the statement of income under the line
item ‘Other operating result’.
INVESTMENT PROPERTIES
Investment property is property (land and buildings or part of a building or both) held for the purpose of earning rental income or
for capital appreciation or both.
Investment property is presented on the balance sheet in the line item ‘ Investment properties’.
Rental income is recognised in the statement of income in the line item ‘Rental income from investment properties and other
operating leases’. Depreciation is presented in the statement of income in the line item ‘Depreciation and amortisation’ using the
straight-line method over an estimated useful life. The useful lives of investment properties are in the range of 15-100 years. Any
impairment losses, as well as their reversals, are recognised under the line item ‘Other operating result’.
IMPAIRMENT
The bank assesses at each reporting date whether there is an indication that a non-financial asset may be impaired. Testing for
impairment is done at individual asset level if the asset generates cash inflows that are largely independent of those from other
assets. The typical case is investment property. Otherwise, the impairment test is carried out at the level of the cash-generating unit
(CGU) to which the asset belongs.
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ACQUISITION AND PRODUCTION COSTS
Own property, equipment and investment properties

in EUR million | Land and buildings | Office and plant equipment/other fixed assets | IT assets (hardware) | Movable other property | Property and equipment | Investment properties
Jan 24 | 2,481 | 994 | 617 | 312 | 4,405 | 1,987
Additions | 261 | 84 | 96 | 63 | 504 | 141
Disposals | -52 | -82 | -64 | -136 | -335 | -27
Acquisition of subsidiaries | 0 | 1 | 0 | 0 | 1 | 106
Disposal of subsidiaries | -16 | 0 | -1 | 0 | -17 | 0
Reclassification | -2 | 1 | 1 | 0 | 0 | 0
Assets held for sale | -10 | 0 | -10 | 0 | -20 | 0
Currency translation | -17 | -3 | -5 | 2 | -24 | -6
Dec 24 | 2,645 | 995 | 634 | 240 | 4,514 | 2,199
Additions | 222 | 96 | 88 | 71 | 478 | 339
Disposals | -54 | -56 | -57 | -111 | -278 | -20
Acquisition of subsidiaries | 0 | 0 | 0 | 0 | 0 | 27
Disposal of subsidiaries | -51 | 0 | 0 | -7 | -58 | 0
Reclassification | 8 | -1 | 3 | 0 | 10 | -10
Assets held for sale | -16 | 0 | 0 | 0 | -16 | -178
Currency translation | 32 | 3 | 7 | -1 | 40 | 12
Dec 25 | 2,786 | 1,036 | 675 | 193 | 4,690 | 2,369

ACCUMULATED DEPRECIATION
Own property, equipment and investment properties

in EUR million | Land and buildings | Office and plant equipment/other fixed assets | IT assets (hardware) | Movable other property | Property and equipment | Investment properties
Jan 24 | -1,123 | -655 | -407 | -150 | -2,334 | -554
Amortisation and depreciation | -71 | -62 | -72 | -29 | -234 | -30
Disposals | 42 | 77 | 62 | 80 | 261 | 11
Acquisition of subsidiaries | 0 | 0 | 0 | 0 | 0 | -2
Disposal of subsidiaries | 5 | 0 | 0 | 0 | 5 | 0
Impairment | -3 | -1 | 0 | -4 | -7 | -1
Reversal of impairment | 11 | 0 | 0 | 0 | 11 | 1
Reclassification | 1 | 1 | 0 | 0 | 1 | -1
Assets held for sale | -70 | 0 | 9 | 0 | -61 | -68
Currency translation | 60 | 2 | 3 | -3 | 62 | 2
Dec 24 | -1,147 | -637 | -405 | -107 | -2,296 | -642
Amortisation and depreciation | -75 | -65 | -77 | -28 | -246 | -32
Disposals | 37 | 50 | 55 | 60 | 203 | 11
Acquisition of subsidiaries | 0 | 0 | 0 | 0 | 0 | -2
Disposal of subsidiaries | 51 | 0 | 0 | 7 | 58 | 0
Impairment | -2 | -1 | 0 | -1 | -4 | 0
Reversal of impairment | 3 | 0 | 0 | 0 | 3 | 0
Reclassification | -16 | 0 | 0 | 2 | -14 | 14
Assets held for sale | 11 | 0 | 0 | 0 | 11 | 85
Currency translation | -14 | -2 | -4 | 1 | -18 | -6
Dec 25 | -1,152 | -654 | -432 | -65 | -2,302 | -572

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CARRYING AMOUNTS
Own property, equipment and investment properties

in EUR million | Land and buildings (used by the Group) | Office and plant equipment/other fixed assets | IT assets (hardware) | Movable other property | Property and equipment | Investment properties
Dec 24 | 1,498 | 358 | 229 | 134 | 2,218 | 1,557
Dec 25 | 1,634 | 382 | 243 | 128 | 2,387 | 1,797

Rights of use: property, equipment and investment properties

in EUR million | Land and buildings (used by the Group) | Office and plant equipment/other fixed assets | IT assets (hardware) | Movable other property | Property and equipment | Investment properties
Dec 24 | 501 | 3 | 0 | 33 | 537 | 121
Dec 25 | 532 | 3 | 0 | 18 | 553 | 116

Total carrying amounts

in EUR million | Land and buildings (used by the Group) | Office and plant equipment/other fixed assets | IT assets (hardware) | Movable other property | Property and equipment | Investment properties
Dec 24 | 1,999 | 360 | 229 | 167 | 2,754 | 1,678
Dec 25 | 2,166 | 385 | 243 | 146 | 2,941 | 1,913

For details related to right of use assets capitalized in balance sheet arising from leases where Erste Group is lessee, please see N ote
51 Leases where the Group is a lessee.
The carrying amount of investment properties include properties subject to operating leases in the amount of EUR 1,812 million
(2024: EUR 1,179 million). Investment properties with a carrying amount of EUR 790 million (2024: EUR 741 million) are pledged
as collaterals. Investment properties with a carrying amount of EUR 969 million ( 2024: EUR 761 million) are subject to the
Austrian Non-Profit Housing Act (Wohnungsgemeinnützigkeitsgesetz) and hence are subject to the specific rules in respect of sale
and use of these properties . The carrying amount of property and equipment includes properties subject to operating leases in the
amount of EUR 155 million (2024 : EUR 161 million).
In the reporting period, expenditures in the amount of EUR 232 million (2024: EUR 111 million) are capitalised in the carrying
amount of fixed assets and investment properties during their construction. The contractual commitments for purchase of fixed
assets are EUR 7 million (2024: EUR 2 million).
In 2025 , for land and buildings net impairment gains in the amount of EUR 2 million in Slovakia (2024: EUR 4 million net
impairment gain in Czech Republic) were realized. As of 31 December 2025, the recoverable amount of these impaired assets
amounted to EUR 16 million (2024 : EUR 4 million).
As of 31 December 2025 the fair value of inv estment properties with a carrying amount of EUR 1,913 million (2024:
EUR 1,678 million) amounts to EUR 2,373 million (2024: EUR 2,122 million) and is classified as level 3 of the fair value hierarchy.
The fair values are determined by experts with recognised and relevant professional qualification. Fair values of commercial real
estate in Austria and CEE owned by Erste Group through Austrian companies are based on valuation reports relying essentially,
but not solely, on observable market inputs (such as selling price per square meter charged in recent market observable
transactions for similar assets). For all other property owned by Erste Group through subsidiaries located in CEE countries the
valuations are carried out mainly using the comparative and investment methods. Assessment is made on the basis of a comparison
and analysis of appropriate comparable investment and rental transactions, together with evidence of demand within the vicinity of
the relevant property. The characteristics of such similar transactions are then applied to the asset, taking into account size,
location, terms, covenant and other material factors.
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48. Intangible assets
Erste Group’s intangible assets include goodwill (see Note 58 Subsidiaries), computer software, customer relationships and other
intangible assets.
Intangible assets with finite lives are amortised over their useful economic lives using the straight-line method. The amortisation
expense is recognised in the statement of income under the line item ‘Depreciation and amortisation’.

| Useful lives in years
Computer software | 4-10
Customer relationships | 10-20

IMPAIRMENT OF INTANGIBLE ASSETS INCLUDING GOODWILL
It is typical of intangible assets that they do not generate cash inflows that are largely independent of those from other assets. As a
result, the impairment test is carried out at the level of the cash-generating unit (CGU) to which the asset belongs. For CGUs to
which goodwill has been allocated the impairment test is carried out annually in November, or whenever there is an indication of
possible impairment during the year.
For CGUs at Erste Group the recoverable amount for determining the potential impairment loss is typically based on value in use
which is the present value of the future cash flows expected to be derived from the CGU. The calculation starts with estimation of
future earnings distributable to shareholders. In this respect financial plans for the CGUs as agreed by the management while
taking into account the fulfilment of the respective regulatory capital requirements are used. The planning period is five years. Any
forecasted earnings beyond the planning period are derived on the basis of the last year of the planning period and a long-term
growth rate. The present value of such perpetual earnings growing at a stable rate (referred to as terminal value) takes into
consideration macroeconomic parameters and economically sustainable cash flows for each CGU.
The cash flows are determined by subtracting the annual capital requirement generated by a change in the amount of risk-weighted
assets from the estimated future earnings. The capital requirement was defined through the target tier 1 ratio in light of the
expected future minimum regulatory capital requirements.
The discount rates reflect risks specific to the CGU and have been determined based on the capital asset pricing model (CAPM).
According to the CAPM, the discount rate comprises a risk-free interest rate together with a market risk premium that itself is
multiplied by a factor that represents the systematic market risk (beta factor). Furthermore, a country-risk premium component is
considered in calculation of the discount rate. The values used to establish the discount rates are determined using external sources
of information.
When the recoverable amount of a CGU is less than its carrying amount, the difference is recognised as an impairment loss in the
statement of income under the line item ‘Other operating result’.
The analysis on the recoverability of non-financial assets is explained in section ‘Material accounting policies’ in the chapter
‘Material accounting judgements, assumptions and estimates’.
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Acquisition and production costs

in EUR million | Goodwill | Customer relationships | Software acquired | Self-constructed software within the Group | Others (licenses, patents, etc.) | Total
Jan 24 | 663 | 158 | 1,908 | 632 | 341 | 3,701
Additions | 0 | 0 | 155 | 25 | 5 | 185
Disposals | 0 | 0 | -64 | -19 | -24 | -108
Acquisition of subsidiaries | 66 | 30 | 0 | 0 | 2 | 98
Disposal of subsidiaries | 0 | 0 | 0 | 0 | 0 | 0
Reclassification | 0 | 0 | 10 | -9 | -1 | 0
Assets held for sale | 0 | 0 | -1 | 0 | -12 | -12
Currency translation | -1 | -2 | -32 | 0 | -1 | -36
Dec 24 | 727 | 186 | 1,976 | 629 | 309 | 3,827
Additions | 12 | 10 | 152 | 27 | 13 | 215
Disposals | 0 | -1 | -281 | -19 | -13 | -313
Acquisition of subsidiaries | 0 | 0 | 0 | 0 | 0 | 0
Disposal of subsidiaries | 0 | 0 | 0 | 0 | 0 | 0
Reclassification | 0 | 0 | -3 | -6 | 8 | -1
Assets held for sale | 0 | 0 | 0 | 0 | 0 | 0
Exchange-rate changes | 1 | 2 | 45 | -1 | 1 | 47
Dec 25 | 740 | 196 | 1,889 | 631 | 319 | 3,775

Accumulated depreciation

in EUR million | Goodwill | Customer relationships | Software acquired | Self-constructed software within the Group | Others (licenses, patents, etc.) | Total
Jan 24 | -118 | -138 | -1,368 | -467 | -297 | -2,388
Amortisation and depreciation | 0 | -4 | -107 | -59 | -13 | -183
Disposals | 0 | 0 | 59 | 19 | 24 | 103
Acquisition of subsidiaries | -1 | 0 | 0 | 0 | -2 | -4
Disposal of subsidiaries | 0 | 0 | 0 | 0 | 0 | 0
Impairment | 0 | 0 | -9 | 0 | 0 | -10
Reversal of impairment | 0 | 0 | 0 | 0 | 0 | 0
Reclassification | 0 | 0 | -5 | 0 | 5 | 0
Assets held for sale | 0 | 0 | 1 | 0 | 11 | 12
Currency translation | 1 | 2 | 22 | 0 | 1 | 25
Dec 24 | -119 | -140 | -1,408 | -507 | -271 | -2,445
Amortisation and depreciation | 0 | -7 | -116 | -47 | -12 | -182
Disposals | 0 | 1 | 279 | 19 | 13 | 312
Acquisition of subsidiaries | 0 | 0 | 0 | 0 | 0 | 0
Disposal of subsidiaries | 0 | 0 | 0 | 0 | 0 | 0
Impairment | 0 | 0 | -12 | 0 | -1 | -13
Reversal of impairment | 0 | 0 | 0 | 0 | 0 | 0
Reclassification | 0 | 0 | -1 | 1 | 0 | 0
Assets held for sale | 0 | 0 | 0 | 0 | 0 | 0
Currency translation | -1 | -2 | -31 | 1 | -1 | -34
Dec 25 | -119 | -149 | -1,288 | -534 | -272 | -2,362

Carrying amounts

in EUR million | Goodwill | Customer relationships | Software acquired | Self-constructed software within the Group | Others (licenses, patents, etc.) | Total
Dec 24 | 609 | 45 | 568 | 122 | 38 | 1,382
Dec 25 | 621 | 48 | 600 | 97 | 47 | 1,413

The contractual commitments for the purchase of intangible assets amounted to EUR 0 million ( 2024: EUR 2 million). As of 31
December 2025 the customer relationship Ringturm Kapitalanlagegesellschaft m.b.H. amounted to EUR 11 million (2024:
EUR 16 million). The remaining amortization period of the customer relationship in Ringturm Kapitalanlagegesellschaft m.b.H.
was 2.8 years. In addition, a customer relationship of InterCapital Asset Management d.o.o. in the amount of EUR 10 million was
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recognised in 2025. Amortization is spread on average over the next 9 years for 2 customer segments. In October 2025 InterCapital
Asset Management d.o.o. was merged into company Erste Asset Management d.o.o.
GOODWILL
The addition to goodwill includes EUR 12 million from the acquisition of InterCapital Asset Management d.o.o. (in October 2025
InterCapital Asset Management d.o.o. was merged into company Erste Asset Management d.o.o.).
The goodwill of Česká spořitelna a.s. (‘CSAS’) was tested for objective evidence of impairment on a quarterly basis during 2025. The
annual goodwill impairment test was performed as of 31 October 2025. With regards to the ongoing planning uncertainty caused by
the unpredictable economic environment due to several global conflicts (Israel, Ukraine), Erste Group derived an additional
planning scenario for the impairment test. In addition to the base case scenario, which was weighted as the most likely scenario
with 75% probability, a downside scenario with 25% probability weighting was also defined. The recoverable amount was higher
than the carrying amount, thus no impairment was required.
Carrying amount and material parameters used for the impairment test per subsidiary (CGU) for
significant goodwills

| CSAS
Carrying amount of goodwill as of 1 January 2025 (in EUR million) | 544 |
Effect of exchange rate changes for the year 2025 (in EUR million) | 0 |
Basis upon which recoverable amount has been determined | Value in Use (discounted cash flow model based)
Key interest input parameters into the discounted cash flow model | Risk Free Rate, Terminal Growth Rate, ß Factor, Market Risk Premium
Description of approach to determining value assigned to risk free rate | Risk Free Rate has been set at 3.25% p.a. throughout relevant Group's CGUs on relevant financial statistics published by Deutsche Bundesbank as at the reference date 31. October 2025.
Description of approach to determining values assigned to terminal growth rate | For non-Austrian (CEE) CGUs: Terminal Growth Rate has been equated to 3% representing the recommended cap level for the Terminal Growth Rate, as per the report ESMA/2013/2 'European Enforcers Review of Impairment of Goodwill and Other Intangible Assets in the IFRS Financial Statements' published by the European Securities and Markets Authority (ESMA).
Description of approach to determining values assigned to β factor | Set as the median value of a group of levered ß factors attributable to a sample of 'peer banks' representative of the tested banks (CGUs), as published by Capital IQ as of the reference date 31 October 2025
Description of approach to determining values assigned to market risk premium | Set at 5.98% throughout relevant Group's CGUs based on published evaluations by the Austrian Chamber of Commerce (Kammer der Steuerberater und Wirtschaftsprüfer).
Period of cash flow projection (years) | 5 years (2026 - 2030); extrapolation to perpetuity based on Terminal Growth Rate
Discount rate applied to cash flow projections (pre-tax) | 14.2% |
The value assigned to β Factor | 1.26 |
Amount of goodwill impairment loss recognised in profit or loss for the year 2025 (in EUR million) | 0 |
Post-impairment carrying amount of goodwill as of 31 December 2025 (in EUR million) | 544 |

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Carrying amount of goodwill as of 1 January 2024 (in EUR million) | 544 |
Effect of exchange rate changes for the year 2024 (in EUR million) | 0 |
Basis upon which recoverable amount has been determined | Value in Use (discounted cash flow model based)
Key interest input parameters into the discounted cash flow model | Risk Free Rate has been set at 2.60% p.a. throughout relevant Group’s CGUs based on relevant financial statistics published by Deutsche Bundesbank as at the reference date 31 October 2024.
Description of approach to determining value assigned to risk free rate | For non-Austrian (CEE) CGUs: Terminal Growth Rate has been equated to 3%, representing the recommended cap level for the Terminal Growth Rate, as per the report ESMA/2013/2 ‘European Enforcers Review of Impairment of Goodwill and Other Intangible Assets in the IFRS Financial Statements’ published by the European Securities and Markets Authority (ESMA).
Description of approach to determining values assigned to terminal growth rate | For non-Austrian (CEE) CGUs: Terminal Growth Rate has been equated to 3%, representing the recommended cap level for the Terminal Growth Rate, as per the report ESMA/2013/2 ‘European Enforcers Review of Impairment of Goodwill and Other Intangible Assets in the IFRS Financial Statements’ published by the European Securities and Markets Authority (ESMA).
Description of approach to determining values assigned to β factor | Set as the median value of a group of levered β factors attributable to a sample of ‘peer banks’ representative of the tested banks (CGUs), as published by Capital IQ as of the reference date 31 October 2024.
Description of approach to determining values assigned to market risk premium | Set at 6.87% throughout relevant Group’s CGUs based on published evaluations by the Austrian Chamber of Commerce (Kammer der Steuerberater und Wirtschaftsprüfer).
Period of cash flow projection (years) | 5 years (2025 - 2029); extrapolation to perpetuity based on Terminal Growth Rate
Discount rate applied to cash flow projections (pre-tax) | 13.8% |
The value assigned to β Factor | 1.19 |
Amount of goodwill impairment loss recognised in profit or loss for the year 2024 (in EUR million) | 0 |
Post-impairment carrying amount of goodwill as of 31 December 2024 (in EUR million) | 544 |

For cash generating units outside the euro-zone, an inflation differential has been considered when determining the discount rates
applicable to the related 2026-2030 cash flow projections.
The outcome of the sensitivity analysis shows by how much the key input parameters into the applied discounted cash flow models
would need to vary in order to cause the unit’s calculated recoverable amount to equal its related carrying amount:

Dec 25 | CSAS
Amount by which recoverable amount exceeds/fall short the carrying amount (in EUR million) | 4,794
Risk free rate increase/decrease that would cause recoverable amount to equal carrying amount (basis points) | 798
Terminal growth rate increase/decrease that would cause recoverable amount to equal carrying amount (basis points) | -6,808
β factor increase/decrease that would cause recoverable amount to equal carrying amount (coefficient value) | 1.335
Market risk premium increase/decrease that would cause recoverable amount to equal carrying amount (basis points) | 635
Dec 24 |
Amount by which recoverable amount exceeds/fall short the carrying amount (in EUR million) | 3,916
Risk free rate increase/decrease that would cause recoverable amount to equal carrying amount (basis points) | 650
Terminal growth rate increase/decrease that would cause recoverable amount to equal carrying amount (basis points) | -6,033
β factor increase/decrease that would cause recoverable amount to equal carrying amount (coefficient value) | 0.945
Market risk premium increase/decrease that would cause recoverable amount to equal carrying amount (basis points) | 547

49. Other assets

in EUR million | Dec 24 | Dec 25
Prepayments | 162 | 187
Inventories | 108 | 129
Sundry assets | 796 | 985
Other assets | 1,066 | 1,301

In the line ‘Inventories’ real estate project developments and repossessed assets (mainly real estate) are disclosed.
The impairment of inventories, shown as expense in the reporting period amounts to EUR 1 million ( 2024: EUR 5 million). The
carrying amount of inventories carried at fair value less costs to sell amounts to EUR 16 million (2024: EUR 25 million). The cost of
inventories recognised as expense in the reporting period amounts to EUR 4 million (2024: EUR 3 million).
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FIDUCIARY ASSETS
The Group provides trust and other fiduciary services that result in the holding or investing of assets on behalf of its clients. Assets
held in a fiduciary capacity are not reported in the financial statements, as they are not the assets of Erste Group.
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Leases
A lease is a contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration.
50. Erste Group as a lessor
On the side of the lessor, a distinction is made between finance leases and operating leases. A finance lease is a lease that transfers
substantially all the risks and rewards incidental to ownership of an asset. In the case of a finance lease, Erste Group reports a
receivable from the lessee under the line item ‘Finance lease receivables’. The receivable is equal to the present value of the
contractually agreed payments taking into account any residual value. Interest income on the receivable is reported in the
statement of income in the line item ‘Other similar income’ under ‘Net interest income’.
In the case of operating leases, which are leases other than finance leases, the leased asset is reported in ‘Property and equipment’
or in ‘Investment properties’ and is depreciated in accordance with the principles applicable to the assets involved. Lease income is
recognised on a straight-line basis over the lease term in the statement of income under the line item ‘Rental income from
investment properties and other operating leases’.
Erste Group is mitigating the risk associated with any rights it retains in underlying assets. This is achieved especially by means of
residual value guarantees, variable lease payments for use in excess of specified limits and buy-back agreements with third parties.
Erste Group (intermediate lessor) accounts for the head lease and the sublease as two separate contracts. The intermediate lessor is
required to classify the sublease as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
The vast majority of lease agreements in which Erste Group operates as a lessor are finance leases.
FINANCE LEASES
Erste Group leases both movable property and real estate to other parties under finance lease arrangements. For finance lease
receivables included in this item, the reconciliation of the gross investment in leases to the present value of the minimum lease
payments is as follows:

in EUR million | Dec 24 | Dec 25
Outstanding lease payments | 5,789 | 5,880
Non-guaranteed residual values | 165 | 160
Gross investment | 5,954 | 6,040
Unrealised financial income | 623 | 667
Net investment | 5,331 | 5,373
Present value of non-guaranteed residual values | 116 | 112
Present value of outstanding lease payments | 5,215 | 5,261

Maturity analysis by residual maturities

| Dec 24 | Dec 25
in EUR million | Gross investment | Present value of outstanding lease payments | Gross investment | Present value of outstanding lease payments
< 1 year | 1,630 | 1,438 | 1,647 | 1,453
1-2 years | 1,266 | 1,125 | 1,323 | 1,176
2-3 years | 1,034 | 932 | 1,096 | 985
3-4 years | 797 | 724 | 829 | 748
4-5 years | 524 | 472 | 485 | 427
> 5 years | 702 | 524 | 661 | 472
Total | 5,954 | 5,215 | 6,040 | 5,261

During 2025, Erste Group recognised interest income on finance lease receivables in the amount of EUR 271 million (2024:
EUR 290 million). Gains/losses from derecognition of finance lease receivables are recognised in line item ‘Other gains/losses from
derecognition of financial instruments not measured at fair value through profit or loss’ (see Note 10 Other gains/losses from
derecognition of financial instruments not measured at fair value through profit or loss).
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Finance lease receivables
Gross carrying amounts and credit loss allowances per impairment buckets

| Gross carrying amount | Credit loss allowances |
in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Carrying amount
Dec 25 |  |  |  |  |  |  |  |  |  |  |
General governments | 234 | 10 | 0 | 0 | 244 | -1 | -1 | 0 | 0 | -2 | 242
Credit institutions | 1 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1
Other financial corporations | 236 | 4 | 13 | 0 | 253 | -1 | 0 | -1 | 0 | -2 | 252
Non-financial corporations | 3,282 | 596 | 83 | 1 | 3,963 | -16 | -21 | -25 | 0 | -63 | 3,900
Households | 825 | 68 | 15 | 0 | 908 | -5 | -2 | -6 | 0 | -13 | 895
Total | 4,579 | 678 | 112 | 1 | 5,369 | -22 | -25 | -32 | 0 | -79 | 5,290
Dec 24 |  |  |  |  |  |  |  |  |  |  |
General governments | 248 | 5 | 0 | 0 | 253 | -1 | -1 | 0 | 0 | -2 | 251
Credit institutions | 1 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1
Other financial corporations | 234 | 4 | 18 | 0 | 255 | -1 | 0 | 0 | 0 | -1 | 254
Non-financial corporations | 3,123 | 724 | 87 | 1 | 3,934 | -14 | -28 | -26 | 0 | -68 | 3,866
Households | 800 | 73 | 13 | 0 | 886 | -4 | -2 | -5 | 0 | -11 | 875
Total | 4,405 | 806 | 119 | 1 | 5,331 | -20 | -31 | -32 | 0 | -83 | 5,248

For information about development of credit loss allowances refer to Note 39 Development of credit loss allowances.
OPERATING LEASES
Under operating leases, Erste Group leases both real estate and movable property to other parties.
Maturity analysis of lease payments from operating leases

in EUR million | Dec 24 | Dec 25
< 1 year | 167 | 160
1-2 years | 151 | 145
2-3 years | 145 | 143
3-4 years | 147 | 141
4-5 years | 149 | 131
> 5 years | 147 | 378
Total | 905 | 1,098

During 2025, Erste Group recognised income relating to variable lease payments in the amount of EUR 2 million (2024:
EUR 3 million). For information about rental income please refer to Note 7 Rental income from investment properties and other
operating leases.
51. Leases where the Group is a lessee
Under IFRS 16, Erste Group as a lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease
liability representing its obligation to make lease payments.
The right-of-use asset is depreciated to the earlier of the end of its useful life or the end of the lease term. Erste Group uses the
straight-line method of depreciation. The right-of-use assets are presented on the balance sheet as part of ‘Property and equipment’
or, if they are sub-leased to third parties, for operating leases as part of ‘Investment properties’ and for finance leases as a ‘Finance
lease receivable’.
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The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. The
lease payments also include the exercise price under a purchase option and consider lease payments in an optional renewal period
if Erste Group is reasonably certain to exercise the options. Extension and termination options are included in a number of real
estate leases across Erste Group. The use of extension and termination options gives Erste Group added flexibility in case more
suitable premises in terms of costs and/or location are identified or in case it is considered favourable to remain in a location
beyond the original lease term.
When determining the present value of lease payment Erste Group typically uses the incremental borrowing rate as the discount
rate. For movables it consists of EURIBOR as a base rate, adjusted by a surcharge based on the entity’s rating, the amount of funds
borrowed, the term of the lease and the collateral provided. The determination of the incremental borrowing rate for property
leases is based on two components, the market rate and the single property rate. The market rate considers the lease term,
creditworthiness and the base rate EURIBOR and is derived from existing bank data. The single property rate represents a
surcharge to the market rate based on the quality of the single property. On the balance sheet the lease liabilities are presented in
the line item ‘Lease liabilities’.
Erste Group primarily rents real estates such as buildings and land for headquarters, branches and parking lots. In addition,
movables such as IT equipment and ATMs are rented for business operations.
Rights of use assets

in EUR million | Land and buildings | Property and equipment
Dec 25 |  |
Carrying amount | 532 | 553
Additions | 114 | 122
Depreciation | -89 | -96
Dec 24 |  |
Carrying amount | 501 | 537
Additions | 97 | 116
Depreciation | -91 | -97

Maturity analysis of lease liabilities based on undiscounted cash flows

in EUR million | Dec 24 | Dec 25
< 1 year | 103 | 115
1-5 years | 342 | 357
> 5 years | 362 | 364
Total | 807 | 836

During 2025, interest expenses on lease liabilities were recognised in the amount of EUR 14 million (2024: EUR 13 million). In
addition, expenses in the amount of EUR 4 million (2024: EUR 4 million) relating to short term leases and expenses amounting to
EUR 6 million (2024: EUR 7 million) relating to leases of low value items, for which the recognition exemption of IFRS 16 applies,
were recognised. Gains arising from sale and leaseback transactions in the amount of EUR 2 million (2024: EUR 5 million) were
recognised. During 2025, income from subleasing right-of-use assets was recognised in the amount of EUR 1 million ( 2024:
EUR 2 million). Total cash outflow for leases in 2025 was EUR 116 million (2024 : EUR 111 million).
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Accruals, provisions, contingent liabilities and legal
proceedings
52. Other liabilities

in EUR million | Dec 24 | Dec 25
Deferred income | 124 | 128
Sundry liabilities | 2,534 | 2,577
Other liabilities | 2,658 | 2,706

Deferred income outstanding at 31 December 2025 includes ‘contract liabilities’ in accordance with IFRS 15 in amount of
EUR 111 million (2024: EUR 110 million). Revenue recognised in the reporting year 2025 that was included in the contract liability
balance at the beginning of the period amounts to EUR 80 million (2024: EUR 47 million).
The item ‘Sundry liabilities’ mainly contains outstanding settlement liabilities as well as other liabilities from employee benefits.
53. Provisions
Provisions are liabilities with uncertain timing or amount. The balance sheet line item ‘Provisions’ includes:
_ provisions for defined employee benefit plans recognised based on requirements of IAS 19
_ provisions for expected credit losses from loan commitments and financial guarantees recognised based on requirements of
IFRS 9; and
_ remaining classes of provisions recognised in accordance with IAS 37 such as provisions or litigation, restructuring,
commitments and guarantees not in scope of IFRS 9.
MATERIAL ACCOUNTING JUDGEMENTS, ASSUMPTIONS AND ESTIMATES
Recognition of provisions requires judgement with respect to whether Erste Group has a present obligation as a result of a past
event and whether it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.
Furthermore, estimates are necessary with respect to the amount and timing of future cash flows when determining the amount of
provisions. Further details on provisions for off-balance credit risk exposures are explained in Note 35 Credit risk exposure and 39
Development of credit loss allowances. Legal proceedings that do not meet the criteria for recognition of provisions are described in
Note 54 Contingent liabilities.
Following classes of provision can be distinguished in the business of Erste Group:

in EUR million | Dec 24 | Dec 25
Defined employee benefit plans | 746 | 657
Loan commitments and financial guarantees given in scope of IFRS 9 | 474 | 435
Pending legal issues and tax litigation | 258 | 196
Commitments and guarantees given out of scope of IFRS 9 | 12 | 6
Other provisions | 136 | 121
Provisions | 1,626 | 1,416

D EFINED EMPLOYEE BENEFIT PLANS
Defined employee benefit plans operated by Erste Group are for pensions, severance and jubilee benefits. They largely relate to
plans operated in Austria which are described below. In addition, there are defined employee benefit plans for foreign subsidiaries
in Romania, Croatia, Serbia and Slovakia and the New York branch.
In Austria, the defined benefit pension plans relate largely to retired employees before 2000. The pension obligations for current
employees or those who retired after 2000 were transferred to external pension funds.
Employees of Austrian entities who started their employment before 1 January 2003, are entitled to receive a severance payment if
their employment is terminated by the employer or if they retire. The amount depends on the number of years of service and the
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employee’s salary at termination of the employment. For other employees a contribution-based system is provided. The
contributions to external employee pension funds are recognised as expenses.
Jubilee provisions are special one-off payments stipulated in the collective agreement which are dependent on remuneration and
duration of service. Eligibility is conditioned on a certain minimum duration of the employment.
From IAS 19 categorisation perspective, pension and severance benefits qualify as post-employment defined benefits plans whereas
jubilee benefits are other long-term employee benefits.
Obligations ensuing from defined employee benefit plans are determined using the projected unit credit method. The calculation
involves actuarial assumptions which are further discussed below.
The liability recognised under a defined benefit plan represents the present value of the defined benefit obligation less the fair value
of the plan assets available for the direct settlement of obligations. The resulting defined benefit liability is reported on the balance
sheet under the line item ‘Provisions’. At Erste Group, the plan assets consist of qualifying insurance policies purchased to back
severance and jubilee benefit provisions. Plan assets for pension provision are held by a long-term employee benefit fund.
Remeasurements consist of actuarial gains and losses on the defined benefit obligations and the return on plan assets.
Remeasurements of pension and severance defined benefit plans are recognised as accumulated OCI in equity specifically under
‘Remeasurement of defined benefit plans’ in the statement of changes in equity. The change for the period is reported as OCI in the
statement of comprehensive income in the line ‘Remeasurement of defined benefit plans’. Remeasurements of jubilee defined
benefit plans are recognised in the statement of income under the line item ‘Personnel expenses’.
Long-term employee provisions

in EUR million | Pensions | Severance payments | Jubilee benefits | Total
Present value of long-term employee benefit obligations - Dec 21 | 720 | 447 | 115 | 1,282
Present value of long-term employee benefit obligations - Dec 22 | 609 | 367 | 98 | 1,074
Present value of long-term employee benefit obligations - Dec 23 | 599 | 375 | 108 | 1,082
Settlements/curtailments | 1 | 0 | 0 | 1
Service cost | 1 | 9 | 6 | 17
Interest cost | 19 | 12 | 3 | 35
Payments | -61 | -32 | -6 | -99
Exchange rate difference | 3 | 0 | 0 | 3
Actuarial gains/losses recognised in OCI | -9 | -3 | 0 | -11
Actuarial gains/losses recognised in PL | 0 | 0 | -3 | -3
Present value of long-term employee benefit obligations - Dec 24 | 553 | 362 | 108 | 1,023
Obligations covered by plan assets | 31 | 182 | 62 | 275
Obligations covered by provisions | 521 | 180 | 46 | 748
Less fair value of plan assets | 31 | 182 | 62 | 275
Provisions - Dec 24 | 521 | 180 | 46 | 748
Present value of long-term employee benefit obligations - Dec 24 | 553 | 362 | 108 | 1,023
Settlements/curtailments | 1 | 0 | 0 | 1
Service cost | 1 | 8 | 6 | 16
Interest cost | 19 | 13 | 4 | 35
Payments | -58 | -34 | -7 | -100
Exchange rate difference | -5 | 0 | 0 | -5
Actuarial gains/losses recognised in OCI | -24 | -17 | 0 | -41
Actuarial gains/losses recognised in PL | 0 | 0 | -11 | -11
Present value of long-term employee benefit obligations - Dec 25 | 487 | 330 | 100 | 917
Obligations covered by plan assets | 33 | 171 | 56 | 260
Obligations covered by provisions | 454 | 159 | 44 | 657
Less fair value of plan assets | 33 | 171 | 56 | 260
Provisions - Dec 25 | 454 | 159 | 44 | 657

ACTUARIAL ASSUMPTIONS
The cost of the defined benefit pension plan is determined using an actuarial valuation. The actuarial valuation involves making
assumptions about interest rates, future pension increases, future salary increases and mortality rates.
292
For Austrian entities the actuarial calculation of pension obligations is based on the following assumptions:

in % | Dec 24 | Dec 25
Interest rate | 3.48 | 3.99
Expected increase in retirement benefits | 3.10 | 3.10

The expected retirement age for each employee was individually calculated on the basis of the changes set out in the Budget
Implementation Act of 2003 (Austrian Federal Law Gazette Vol. I No. 71/2003) regarding the increase in the minimum retirement
age. The currently applicable legislation on the gradual raising of the retirement age for women to 65 was taken into consideration.
For Austrian entities the actuarial calculation of severance payment and jubilee benefits is based on the following assumptions:

in % | Dec 24 | Dec 25
Interest rate | 3.48 | 3.99
Average increase in salary (incl. career trend and collective agreement trend) | 4.00 | 4.00

The interest rate applied for the calculation of the long-term employee provisions is derived from the yield of a portfolio of AA-
rated corporate bonds. For this purpose the weighted average yield of the underlying portfolio with a corresponding duration is
determined.
For the non-Austrian subsidiaries and branches interest rates between 3.0% (2024: 2.0%) and 6.8% ( 2024: 6.9%) were used.
Obligations were calculated based on mortality tables entitled ‘AVÖ 2018–P – Rechnungsgrundlagen für die Pensionsversicherung’
or comparable mortality tables.
The following table presents a sensitivity analysis for each significant actuarial assumptions showing how the defined benefit
obligation would have been affected by changes in the relevant actuarial assumptions that were reasonably possible at the balance
sheet.

| Dec 24 | Dec 25
in EUR million | Pensions | Severance payments | Total | Pensions | Severance payments | Total
Change in discount rate +0.5% | 535 | 345 | 880 | 472 | 316 | 788
Change in discount rate -0.5% | 573 | 380 | 953 | 503 | 346 | 849
Change in future salary increases +0.5% | 553 | 380 | 933 | 487 | 346 | 833
Change in future salary increases -0.5% | 553 | 345 | 898 | 487 | 315 | 802
Change in future benefit increases +0.5% | 584 | 362 | 946 | 513 | 330 | 843
Change in future benefit increases -0.5% | 523 | 362 | 885 | 462 | 330 | 792
Increase in survival rate by approx. 10% | 598 | 362 | 960 | 526 | 330 | 856

INVESTMENT STRATEGY
Erste Group’s severance payments and jubilee payments are partially covered by the fair value of plan assets, while large majority of
the defined benefit pension plans are unfunded.
The primary investment strategy of Erste Group is the continuous optimization of plan assets and the effective coverage of existing
entitlements. The Group works with professional fund managers for the investment of plan assets. The Investment Fund Act
applies as a requirement with respect to specific investment guidelines relating to the investment of plan assets. Additionally, the
Investment Committee is responsible for monitoring the mandate guidelines and the investment structure, the supervision, which
may arise from regulatory or other legal requirements, as well as the monitoring of demographic changes. It is composed of senior
staff in the financial sector and representatives of the S-Versicherung and Erste Asset Management.
293
Movements in plan assets

in EUR million | Pensions | Severance payments | Jubilee benefits | Total
Fair value of plan assets - Dec 23 | 30 | 183 | 60 | 273
Addition | 0 | 0 | 0 | 0
Interest income on plan assets | 2 | 6 | 2 | 9
Contributions by the employer | 1 | 12 | 6 | 20
Benefits paid | -1 | -19 | -6 | -27
Return on plan assets recognised in OCI | 1 | 6 | 0 | 7
Return on plan assets recognised in PL | 0 | 0 | 0 | 0
Fair value of plan assets - Dec 24 | 31 | 189 | 62 | 283
Addition | 0 | 0 | 0 | 0
Interest income on plan assets | 2 | 6 | 2 | 10
Contributions by the employer | 1 | 9 | 2 | 13
Benefits paid and other | -5 | -19 | -8 | -32
Return on plan assets recognised in OCI | 2 | -3 | 0 | -1
Return on plan assets recognised in PL | 0 | 0 | 0 | 0
Fair value of plan assets - Dec 25 | 33 | 183 | 58 | 274

In 2026, the expected contributions for the severance and jubilee benefit obligations will amount to EUR 6 million (2025:
EUR 6 million). The contributions shown in the table includ e not only regular contributions but also one-time payments at the end
of the year. The total gain on plan assets in 2025 amounted to EUR 9 million (2024 : gain EUR 17 million).
Asset allocation in the different asset classes

| Dec 24 | Dec 25
in EUR million | Europe- EMU | Europe- non EMU | USA | Other countries | Total | Europe- EMU | Europe- non EMU | USA | Other countries | Total
Cash and cash equivalents |  |  |  |  | 48 |  |  |  |  | 13
Equity instruments | 1 | 1 | 34 | 12 | 49 | 2 | 2 | 40 | 13 | 58
Investment-grade bonds |  |  |  |  |  |  |  |  |  |
Government | 72 | 2 | 0 | 4 | 78 | 34 | 5 | 0 | 5 | 44
Non-government bonds | 19 | 9 | 11 | 10 | 50 | 52 | 20 | 26 | 14 | 112
Non-investment-grade bonds |  |  |  |  |  |  |  |  |  |
Government | 0 | 0 | 0 | 6 | 6 | 0 | 0 | 0 | 6 | 6
Non-government bonds | 13 | 5 | 7 | 10 | 35 | 14 | 6 | 5 | 8 | 33
Alternatives |  |  |  |  |  |  |  |  |  |
Other | 4 | 3 | 0 | 13 | 19 | 0 | 0 | 0 | 8 | 8
Derivatives (market risk) |  |  |  |  |  |  |  |  |  |
Other |  |  |  |  | 0 |  |  |  |  | 1
Plan assets |  |  |  |  | 285 |  |  |  |  | 274

In the table above, Investment-grade refers to BBB and above. The plan assets shown in the table above include mainly assets that
are quoted and traded on active markets.
For the yearly pension payments of the unfunded defined benefit plans and the unfunded part of severance payments Erste Group
generally takes care within its asset-liability management strategy covering the funding plan and interest rate risk position of the
Group.
Effects of defined post-employment benefit plans in profit or loss and other long-term employee
benefits

in EUR million | Dec 24 | Dec 25
Settlements/curtailments | -1 | -1
Service cost | -17 | -16
Net interest | -26 | -25
Total | -43 | -41

294
Settlements and curtailments as well as service costs are included in the income statement in the line item ‘Personnel expenses’.
Net interest includes interest expenses for long-term employee benefits as well as the expected return on plan assets. These are
disclosed in the income statement in the line item ‘Other similar income’ and ‘Other similar expense’ under ‘Net interest income’.
As of 31 December 2025, the cumulative amount of remeasurement from defined benefit plans, recognised in other comprehensive
income amounted to EUR 716 million before tax (2024: EUR 756 million).
I MPACT ON CASH FLOWS
Benefits expected to be paid by the defined benefit plans in each of the respective periods

in EUR million | Pensions | Severance payments | Total
2026 | 53 | 16 | 69
2027 | 50 | 15 | 65
2028 | 47 | 16 | 63
2029 | 44 | 18 | 62
2030 | 41 | 20 | 61
2031-2035 | 157 | 146 | 303

DURATION
Weighted average duration of the defined benefit obligations

in years | Dec 24 | Dec 25
Pensions | 6.97 | 6.56
Severance payments | 9.89 | 9.35
Total | 8.12 | 7.69

The weighted average duration is affected by changes in longevity and in the mortality table.
LOAN COMMITMENTS AND FINANCIAL GUARANTEES GIVEN IN SCOPE OF IFRS 9
In the ordinary course of business, Erste Group provides financial guarantees, consisting of various types of letters of credit and
guarantees. A financial guarantee is a contract that requires the guarantor to make specified payments to reimburse the holder for a
loss it incurs in case a specified debtor fails to make a payment when due in accordance with the original or modified terms of a
debt instrument.
For financial guarantees provisions are recognised based on the expected credit loss impairment model if the amount is higher than
the unamortised balance of the initial premium.
Loan commitments are firm commitments to provide credit under prespecified terms and conditions. Loan commitments are
generally not recognised in the balance sheet before they are drawn. If it is probable that the bank will enter into the loan
agreement loan commitment fees received are deferred and adjust the effective interest rate of the loan when the commitment is
drawn. Loan commitments result in recognition of provisions based on the expected credit loss impairment model.
Expenses or income related to provisions for loan commitments and financial guarantees are reported in the statement of income
under the line item ‘Impairment result from financial instruments’.
For information about development of credit loss allowances for provision for financial guarantees and loan commitments refer to
N ote 39 Development of credit loss allowances, part ‘Loan commitments and financial guarantees’: table ‘Movement in credit loss
allowances – loan commitments and financial guarantees’.
PROVISIONS RECOGNISED IN ACCORDANCE WITH IAS 37
Expenses or income related to provisions which are in scope of IAS 37 are reported in the statement of income under the line item
‘Other operating result’.
295
Following table provides the information about the development of the IAS 37 provisions

in EUR million | As of | Allocations | Use | Releases | Unwind of discount | Exchange rate and other changes | As of
| Jan 25 |  |  |  |  |  | Dec 25
Pending legal issues and tax litigation | 258 | 85 | -20 | -129 | 1 | 1 | 196
Commitments and guarantees given out of scope of IFRS9 | 12 | 6 | 0 | -12 | 0 | 0 | 6
Other provisions | 136 | 6 | -8 | -14 | 2 | 1 | 121
Provisions | 406 | 97 | -28 | -155 | 2 | 2 | 324
| Jan 24 |  |  |  |  |  | Dec 24
Pending legal issues and tax litigation | 289 | 32 | -15 | -44 | 0 | -3 | 258
Commitments and guarantees given out of scope of IFRS9 | 24 | 13 | 0 | -25 | 0 | 0 | 12
Other provisions | 71 | 108 | -30 | -4 | 1 | -11 | 136
Provisions | 384 | 154 | -44 | -74 | 1 | -14 | 406

Under position ‘Pending legal issues and tax litigation’ provisions related to litigations from lending business, asset management or
litigations related to customer protection topics, which normally occur in banking business, are disclosed. In 2025, a partial release
of provisions for risks related to Romanian Consumer Protection Claims Act was recognised in the income statement in the amount
of EUR 42 million (2024: allocation of EUR 1 million). The total amount of the provision as of 31 December 2025 was
EUR 23 million (2024: EUR 66 million).
With respect to the business activities of the Romanian building society subsidiary BCR Banca pentru Locuinte SA (BPL) the
recognition of a penalty (in relation to whether state subsidies had been disbursed to building society’s clients in accordance with
the applicable legal provisions) amounting in total to EUR 78 million was derecognized in autumn 2025 following favorable court
ruling. Consequently, no liability will remain recognised at year-end 2025 (2024: EUR 78 million).
In Croatia, the Supreme Court, in a proceeding initiated by a local consumer protection association against several credit
institutions (‘Collective Case’), among them Erste Bank Croatia (‘EBC’), declared in 2015 that Swiss Franc (CHF) clauses in loan
agreements with consumers are valid, but contractual provisions permitting unilateral change of the variable interest rates in CHF
denominated consumer loans, used by the majority of credit institutions until 2008, are null and void. In 2016, the Croatian
Constitutional Court rescinded the part of the Supreme Court of Croatia decision relating to the validity of CHF clauses. After the
case had been returned for a retrial with respect to the CHF clause to the court of second instance, such court delivered its decision
in 2018, declaring in essence the nullification of the CHF currency clause, holding that collective and individual consumer rights
were breached.
In the course of the aforementioned pending Collective Case, EBC was forced to offer a statutory conversion in 2015, allowing
clients to convert their CHF denominated loans to EUR denominated loans based on respective conversion agreements. A certain
number of CHF denominated loans concluded between 2004 and 2008 are subject of individual court proceedings initiated by
clients arguing to be entitled to restitution on the account of partial nullity of their initial loan agreement although the conversion
was conducted. A final legal standing on the issue of restitution claims for converted loans is currently under consideration on the
level of the Supreme Court. Due to the uncertainty on the final legal standing and the continuous non-uniform judicial practice of
courts in Croatia in regards to converted loans, respective provisions for individual cases were adjusted accordingly.
In July 2024, the Federal Fiscal Court raised the question whether Art 6 sec 1 subsec 28 (2nd sentence) Austrian VAT Act
constitutes state aid pursuant to Article 107 (1) of the Treaty on the Functioning of the European Union (TFEU) to the ECJ in
proceedings brought by an Austrian bank. A decision can be expected in around one to two years. From today’s perspective, Erste
believes there is a high probability that the ECJ will affirm the existence of state aid in its decision. The calculation of the provision
is based on a best estimate. In 2024, a provision amounting to EUR 102 million was recognized. The 2025 remeasurement did not
result in any material change.
54. Contingent liabilities
To meet the financial needs of customers, the bank enters into various irrevocable commitments and contingent liabilities. Even
though these obligations may not be recognised on the balance sheet, they do involve credit risk and are therefore part of the
overall risk of the Bank (see Note 35 Credit risk exposure and 39 Development of Credit loss allowances).
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Legal proceedings
Erste Group Bank AG and some of its subsidiaries are involved in legal disputes, most of which have arisen in the course of
ordinary banking business. These proceedings are not expected to have a significant negative impact on the financial position or
profitability of Erste Group or Erste Group Bank AG. Erste Group is also subject to the following ongoing proceedings, some of
which, if adversely adjudicated, may have a significant impact on the financial position or profitability of Erste Group or Erste
Group Bank AG. Any possible financial impacts of these proceedings are not disclosed, as neither the duration nor the outcome can
be reliably estimated and to avoid influencing the outcome of the various proceedings.
CONSUMER PROTECTION CLAIMS
Several subsidiaries of Erste Group have been named in their respective jurisdictions as defendants in a number of lawsuits and in
regulatory proceedings, filed by individual customers, regulatory authorities or consumer protection agencies and associations.
Some of the lawsuits are class actions. The proceedings mainly relate to allegations that certain contractual provisions, particularly
in respect of consumer loans, violate mandatory consumer protection laws and regulations and principles of general civil law and
that certain fees or parts of interest payments charged to customers in the past must be repaid. The allegations relate to the
enforceability of certain fees as well as to contractual provisions for the adjustment of interest rates and currencies. In some
jurisdictions, the legal risks in connection with loans granted in the past are also increased by the enactment of politically-
motivated laws impacting existing lending relationships, which may result in repayment obligations towards customers. The
following consumer protection issues are deemed noteworthy.
In Romania, BCR is - aside from being a defendant in a number of individual lawsuits initiated by consumers regarding alleged
violations of applicable consumer protection laws - among several local credit institutions pursued by the consumer protection
authority for allegedly abusive clauses pertaining to pre-2010 lending practices. In connection therewith, BCR is currently a
defendant in an individual litigation claim filed by the local consumer protection authority on behalf of or several borrowers. The
court proceeding is still pending. A potential adverse judgment on the validity of certain contractual clauses may have an impact of
invalidating such clauses also in other similar agreements concluded by BCR with other consumers.
CSAS MINORITY SHAREHOLDERS CLAIMS
Following the completion of a squeeze-out procedure in CSAS resulting in Erste Group Bank AG becoming the sole shareholder of
CSAS, some former minority shareholders of CSAS filed legal actions with the courts in Prague against Erste Group Bank AG. In
that proceedings the plaintiffs allege in essence that the share price of 1,328 CZK (then approx. EUR 51 per share) paid by Erste
Group Bank AG in the squeeze-out of the CSAS minority shareholders in 2018 was unfair and too low and should be increased. In
case the courts find there should be an increase, this would affect all minority shareholders squeezed-out. In the squeeze-out
performed in 2018 Erste Group Bank AG acquired a total of 1.03% of minority shares for a consideration of approx. EUR 80 million.
Erste Group Bank AG views that the purchase price, established by a valuation done by professional external experts and in the
course of the ongoing proceeding supported by another external expert valuation appointed by Erste Group Bank AG, was correct
and fair. The competent first instance court in Prague confirmed the view of Erste Group Bank AG of having paid a fair and correct
share price to the former minority shareholders and ruled against the plaintiffs in its first instance judgement, rejecting their claims
for an increase of the share price being paid out. The judgement was appealed by several plaintiffs. The appellate proceeding is still
pending.
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Capital instruments, equity and reserves
55. Total equity

in EUR million | Dec 24 | Dec 25
Subscribed capital | 821 | 821
Additional paid-in capital | 1,516 | 1,516
Retained earnings and other reserves | 18,110 | 20,481
Owners of the parent | 20,447 | 22,819
Additional equity instruments | 2,688 | 3,479
Non-controlling interests | 7,633 | 8,367
Total | 30,767 | 34,665

As of 31 December 2025, subscribed capital (also known as registered capital) consists of 410,514,384 (2024: 410,514,384) voting
bearer shares (ordinary shares). The pro rata amount of registered capital, per no-par value share, was EUR 2.00. Additional paid-in
capital (or share premium) represents the amount by which the issue price of the shares exceeded their par value. Retained
earnings and other reserves represent accumulated net profit brought forward, as well as income and expenses recognised in other
comprehensive income.
SHARE BUYBACK PROGRAM
There was no share buyback program in the course of 2025.
At the Annual General Meeting of Erste Group on 22 May 2024, the Management Board was authorized, with the approval of the
Supervisory Board, to repurchase own shares up to 10% of the share capital within a period of 30 months and to cancel own shares
pursuant to section 65 (1) 8 in conjunction with section 192 of the Austrian Stock Corporation Act. After approval by the ECB on 4
June 2024, the Management Board and Supervisory Board of Erste Group decided to launch a share buyback program with a
volume of up to EUR 500 million. The share buyback program was carried out by a bank commissioned by Erste Group. The
program started on 28 June 2024 and was completed on 28 November 2024. 10,398,524 shares and 2.47% of the share capital have
been redeemed.
Capital decrease was entered in the commercial register during 2024.
ADDITIONAL EQUITY INSTRUMENTS
In addition, Erste Group Bank AG issued additional tier 1 capital (AT1 bonds). AT1 bonds are unsecured and subordinated bonds.
AT1 bonds are perpetual and can be called by the issuer at predetermined dates. The bonds include discretionary non-cumulative
coupon payments. Due to these features, they are classified as equity under IFRS.
AT1 bonds issued

Nominal value | Currency | Issue | Initial fixed rate | Reset rate after the first call date | Coupon payments | First and subsequent call dates
500 million | EUR | January 2020 | 3.375% | 5Y swap +3.433% | Semi-annually on 15th April and 15th October | 15.04.2027 + coupon dates thereafter
750 million | EUR | November 2020 | 4.25% | 5Y swap +4.646% | Semi-annually on 15th April and 15th October | 15.10.2027 + daily until 18.04.2028 + subsequent coupon dates thereafter
500 million | EUR | September 2023 | 8.50% | 5Y swap +5.463% | Semi-annually on 15th April and 15th October | 16.10.2028 + monthly on 15th until coupon payment + subsequent coupon dates thereafter
750 million | EUR | May 2024 | 7.00% | 5Y swap +4.646% | Semi-annually on 15th April and 15th October | 15.04.2031 + coupon dates thereafter
1 billion | EUR | May 2025 | 6.375% | 5Y swap +4.008% | Semi-annually on 15th April and 15th October | 15.10.2032 + coupon dates thereafter

If common equity tier 1 ratio of Erste Group or Erste Group Bank AG falls below 5.125% (i.e. a trigger event occurs) the principal
amount will be written down (fully or partially) on a temporary basis. The issuer may, at its sole discretion, write up the amount
(fully or partially) provided a positive profit has been recorded and the trigger event no longer exists.
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In 2025 the bank issued a new AT1 bond in the amount of EUR 1 billion and redeemed a 2019 issuance.
DISTRIBUTIONS ON OWN EQUITY INSTRUMENTS
Distributions on own equity instruments are recognised as a liability and deducted from equity when their payment is confirmed.
For dividends on common shares the decision is taken by the Annual General Meeting. For coupons on additional tier 1
instruments the payouts do not need approvals but an event of non-payment would require a decision of Erste Group Bank AG
Board.
Changes in number of outstanding shares

| Dec 24 | Dec 25
Shares outstanding as of 1 January | 399,294,699 | 388,126,224
Acquisition of treasury shares | -14,698,790 | -2,746,469
Disposal of treasury shares | 14,678,790 | 3,026,469
Capital increase/Capital decrease | -11,148,475 | 0
Shares outstanding as of 31 December | 388,126,224 | 388,406,224
Treasury shares | 22,388,160 | 22,108,160
Number of shares issued as of 31 December | 410,514,384 | 410,514,384
Weighted average undiluted number of outstanding shares | 415,854,514 | 408,949,788
Weighted average diluted number of outstanding shares | 416,176,925 | 409,244,552

In addition to the calculation of the annual average number of shares outstanding by incorporation of acquisitions and disposals of
treasury shares during the year, the line items ‘weighted average number of outstanding shares’ and ‘weighted average diluted
number of outstanding shares’ consider a proportionate allocation of the treasury shares held by non-controlling interests.
TREASURY SHARES AND CONTRACTS ON TREASURY SHARES
Equity instruments of Erste Group that it or any of its subsidiaries acquire (referred to as treasury shares) are deducted from equity.
TRANSACTIONS AND SHARES HELD BY THE MANAGEMENT BOARD AND SUPERVISORY BOARD
The shares of Management- and Supervisory Board member, whose office term began or ended during the financial year, held as at
the date of inception or termination of their term in office were recognised as additions or disposals.
Shares and related dividends held by Management Board

Managing Board member | Dec 24 | Additions | Disposals | Dec 25 | Dividends received in 2025 (in EUR)
Peter Bosek (Chairman) | 10,351 | 1,097 | 0 | 11,448 | 34,344
Ingo Bleier | 11,574 | 3,638 | 0 | 15,212 | 45,636
Stefan Dörfler | 15,215 | 3,695 | 0 | 18,910 | 56,559
Alexandra Habeler-Drabek | 11,922 | 3,583 | 0 | 15,505 | 46,515
Maurizio Poletto | 8,187 | 3,583 | 0 | 11,770 | 35,310

299
Shares and related dividends held by Supervisory Board

Supervisory Board member | Dec 24 | Additions | Disposals | Dec 25 | Dividends received in 2025 (in EUR)
Christine Catasta | 0 | 0 | 0 | 0 | 0
Henrietta Egerth-Stadlhuber | 0 | 0 | 0 | 0 | 0
Alois Flatz | 0 | 0 | 0 | 0 | 0
Martin Grießer | 222 | 29 | 0 | 251 | 666
Markus Haag | 426 | 24 | 0 | 450 | 1,278
Gottfried Haber (since 21.05.2025) | 0 | 0 | 0 | 0 | 0
Regina Haberhauer | 396 | 24 | 0 | 420 | 1,188
Jakob Hofstädter | 701 | 63 | 0 | 764 | 2,103
Marion Khüny | 0 | 0 | 0 | 0 | 0
Mariana Kühnel (until 24.03.2025) | 0 | 0 | 0 | 0 | 0
Caroline Kuhnert | 0 | 0 | 0 | 0 | 0
Elisabeth Krainer-Senger-Weiss | 1,592 | 3,183 | 0 | 4,775 | 14,325
Barbara Pichler | 742 | 39 | 0 | 781 | 2,226
Friedrich Rödler (until 21.05.2025) | 3,802 | 0 | 3,802 | 0 | 11,406
Friedrich Santner | 0 | 0 | 0 | 0 | 0
Michael Schuster | 30 | 0 | 0 | 30 | 90
Walter Schuster | 0 | 0 | 0 | 0 | 0
Gabriele Semmelrock-Werzer (since 21.05.2025) | 0 | 42 | 0 | 42 | 126
Christiane Tusek | 0 | 0 | 0 | 0 | 0
Karin Zeisel | 122 | 29 | 0 | 151 | 366

For further details on shares held by Supervisory Board refer to the published ‘Director’s Dealings’ of Erste Group Bank AG.
As of 31 December 2025, Supervisory Board members did not receive any Erste Group Bank AG shares or options for such shares as
part of their remuneration. Persons related to members of the Management Board or Supervisory Board held 1,696 shares (2024:
1,690 shares) of Erste Group Bank AG.
REMAINING AUTHORISED AND CONTINGENT CAPITAL AS OF 31 DECEMBER 2025
Clause 5 of the articles of association authorises the Management Board to increase the registered capital with the consent of the
Supervisory Board until 18 May 2027 – also in several tranches – by an amount of up to EUR 343,600,000 by issuing up to
171,800,000 voting no-par value bearer shares in return for contributions in cash and/or in kind, with the issue price and the
issuing conditions being determined by the Management Board with the consent of the Supervisory Board. Furthermore, the
Management Board is authorized to fully or partly exclude the statutory subscription right of the shareholders with the consent of
the Supervisory Board if the capital increase is in return for contributions in kind or if the capital increase is in return for cash and
the pro rata amount of the share capital attributable to the shares issued under exclusion of subscription rights in both cases
(section 5.1.1 capital increase against contribution in kind and section 5.1.2 capital increase against cash contribution) does not
exceed EUR 85,960,000.
The measures in sections 5.1.1 (capital increase against contribution in kind) to 5.1.2 (capital increase against cash contribution)
can also be combined. The aggregate pro rata amount of registered capital represented by new shares in respect of which the
shareholders’ subscription rights are excluded under this authorization in section 5.1 (authorized capital), together with the pro
rata amount of registered capital attributable to new shares which serve to fulfil subscription rights, conversion rights and
conversion obligations arising from convertible bonds issued with the exclusion of subscription rights from 18 May 2022 onwards
pursuant to section 8.3 and which are issued from conditional capital pursuant to section 6.3 to satisfy share options of employees,
senior employees and members of the Management Board of the Company or of a group company, must not exceed the
proportionate amount of 10% of the share capital in total.
Clause 6.3 of the articles of association states that conditional capital based on the resolutions of the Management Board in 2002
and 2010 (both approved by the Supervisory Board) with a nominal value of EUR 21,923,264 persists that can be consumed by
issuing up to 10,961,632 ordinary bearer shares or ordinary registered shares (ordinary share) with an issue price of at least
EUR 2.00 per share against cash contribution and by excluding the subscription rights of the current shareholders. This conditional
capital is used for granting options to staff, management and members of the Management Board of the entity of one of its related
undertakings.
Under clause 6.4 of the articles of association, the company has conditional capital of EUR 124,700,000.00 available, which may be
utilized by issuing up to 62,350,000 pieces bearer shares. This conditional capital can be used for granting conversion or
300
subscription rights to holders of convertible bonds. In case the terms and conditions of the convertible bonds provide for a
mandatory conversion, it shall also serve to cover the mandatory conversion. The issue price and exchange ratio shall be
determined pursuant to a recognised pricing method on the basis of accepted finance-mathematical methods and the share price of
the company.
According to clause 7 of the articles of association, currently no authorized conditional capital exists.
56. Non-controlling interest

| Haftungsverbund Savings Banks, thereof:
in EUR million | Total | Sparkasse Oberösterreich | Sparkasse Steiermark | Sparkasse Kärnten
Dec 25 |  |  |  |
Country of incorporation | Austria | Austria | Austria | Austria
Place of business | Austria | Austria | Austria | Austria
Main business activity | Banking | Banking | Banking | Banking
Ownership% held by NCI | 50,1%-100% | 90% | 75% | 75%
Reporting currency | EUR | EUR | EUR | EUR
Dividends paid to equity holders of the parent | 77 | 18 | 22 | 16
Net result attributable to non-controlling interests | 640 | 73 | 172 | 31
Accumulated NCI | 7,466 | 974 | 2,003 | 285
Subsidiary-level stand-alone key financial information |  |  |  |
Current assets | 26,742 | 5,671 | 6,001 | 1,512
Non-current assets | 67,195 | 10,185 | 14,286 | 4,073
Current liabilities | 69,983 | 11,386 | 15,894 | 4,844
Non-current liabilities | 12,245 | 3,176 | 1,232 | 172
Operating income | 2,868 | 403 | 788 | 171
Profit or loss from continuing operations | 996 | 91 | 406 | 49
Total comprehensive income | 1,951 | 145 | 563 | 112
Dec 24 |  |  |  |
Country of incorporation | Austria | Austria | Austria | Austria
Place of business | Austria | Austria | Austria | Austria
Main business activity | Banking | Banking | Banking | Banking
Ownership% held by NCI | 50,1%-100% | 90% | 75% | 75%
Reporting currency | EUR | EUR | EUR | EUR
Dividends paid to equity holders of the parent | 106 | 48 | 19 | 18
Net result attributable to non-controlling interests | 694 | 73 | 192 | 25
Accumulated NCI | 6,750 | 893 | 1,727 | 266
Subsidiary-level stand-alone key financial information |  |  |  |
Current assets | 26,056 | 6,028 | 6,051 | 1,390
Non-current assets | 62,248 | 9,527 | 13,156 | 3,808
Current liabilities | 66,518 | 11,489 | 14,803 | 4,513
Non-current liabilities | 11,951 | 2,901 | 1,777 | 207
Operating income | 2,592 | 345 | 677 | 144
Profit or loss from continuing operations | 974 | 81 | 367 | 31
Total comprehensive income | 1,461 | 118 | 417 | 71

301
Scope of consolidation
The IFRS scope of consolidation of Erste Group as of 31 December 2025 comprises 281 companies including Erste Group Bank AG
as the parent company (31 December 2024: 299). These comprise a total of 49 entities, which are members of the Haftungsverbund
(cross-guarantee system) of the Austrian savings bank sector. Alongside Erste Group Bank AG, local savings banks, Bausparkasse
der österreichischen Sparkassen Aktiengesellschaft, Erste Bank der oesterreichischen Sparkassen AG and Zweite Wiener Vereins-
Sparcasse are members of the Haftungsverbund (cross-guarantee system). The scope of consolidation also includes ‘ex-ante fund’
IPS GesbR which can be used solely for the purpose to cover loss events of members of the cross-guarantee system. It was
established in 2014 and the members are required to pay into the fund until 31 December 2031.
57. Scope of consolidation - additions and disposals
ADDITIONS 2026
These disclosures are provided based on requirements of IFRS 3.B66 which mandates information on business combinations for
which the acquisition date occurs after the end of the reporting period but before the financial statements are authorised for issue.
Acquisition of Santander Bank Polska S.A. and subsidiaries
In May 2025, Erste Group Bank AG and Banco Santander S.A. entered into an agreement under which Erste Group acquired a 49%
stake in Santander Bank Polska Group S.A. (‘Santander Bank Polska’), a publicly listed universal bank operating in Poland, and a
50% stake in Santander Towarzystwo Funduszy Inwestycyjnych S.A. (‘Santander TFI’), an asset management company. The
transaction was closed on 9 January 2026, the acquisition date, when Erste Group obtained control of the companies. At the
extraordinary general assembly of Santander Bank Polska held on 22 January 2026, a resolution to rename Santander Bank Polska
to ‘Erste Bank Polska S.A.’ was unanimously approved. The rebranding will also apply to Santander Bank Polska group companies
that have ‘Santander’ in their name.
The acquisition of Santander Bank Polska is consistent with Erste Group’s strategic objective of strengthening its presence in
Central and Eastern Europe and expanding its retail and corporate banking operations in Poland, one of the largest and fastest-
growing banking markets in the EU. The business combination provides the Group with access to a well-diversified customer base,
a strong distribution network and a scalable operational platform. Santander Bank Polska is the third-largest bank in Poland by
assets, with market share of 8% (based on transaction perimeter as of December 2024), and is also one of the most profitable banks
in the country. It offers a full range of commercial banking products to retail, SME and corporate clients. Santander TFI is an asset
management company with EUR 6 billion in assets under management as of December 2024.
Erste Group considers that the 49.00% stake in Santander Bank Polska constitutes a controlling interest, despite not representing a
majority of the voting rights. Currently Banco Santander S.A. holds 9.70%, Allianz Polska Otwarty Fundusz Emerytalny 5.23% and
Nationale-Nederlanden OFE 5.01% of the share capital in Santander Bank Polska. The remaining 31.06% of the share capital is in
free float. There are around 100 institutional investors each holding less than a 0.5% stake. The remaining free float is held by
individual investors. There is no information regarding voting agreements among the shareholders. Over the last five years the
participation rate at general meetings of Santander Bank Polska was stable between 82% to 86%. The critical participation rate at
which shareholders, acting in a mutual agreement, could theoretically outvote Erste Group exceeds 98%. As a result, Erste Group
concludes that due to the wide dispersion of shareholdings of the other vote holders it exercises control over Santander Bank
Polska.
Regarding Santander TFI, the other 50% stake is held directly by Santander Bank Polska which grants Erste Group control over
100% of the voting rights.
The transactio n will be accounted for as a business combination using the acquisition method under IFRS 3.
Consideration transferred
The consideration amounts to EUR 7,035 million paid in cash. No equity-settled consideration arrangements exist. The amount
consists of EUR 6,844 million paid for Santander Bank Polska and EUR 171 million paid for Santander TFI. The remaining EUR 20
million relates to post-tax effect of the acquisition price increase in connection with the sale of shares in Santander Consumer Bank
S.A. (subsidiary of Santander Bank Polska) held by Santander Bank Polska S.A. prior to the finalisation of the transaction. The
consideration of EUR 20 million will be paid in cash in the first quarter of 2026 in accordance with the contract, while the
remaining consideration of EUR 7,015 million was paid on the acquisition date.
302
Acquisition related costs
The Group incurred acquisition-related costs of EUR 38 million relating to external legal fees, advisory and due diligence costs.
These costs will be included in ‘administrative expenses’ i n the consolidated statement of income.
Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the date of acquisition
measured based on the IFRS 3 requirements.

in EUR million | Carrying Amount | IFRS 3 adjustment | IFRS 3 measurement
Cash and cash balances | 3,240 | 0 | 3,240
Financial assets held for trading | 4,236 | 0 | 4,236
Financial assets at fair value through other comprehensive income | 9,066 | 0 | 9,066
Debt securities at amortised cost | 11,880 | 277 | 12,158
Loans and advances to banks at amortised cost | 3,740 | 0 | 3,740
Loans and advances to customer at amortised cost | 33,549 | 266 | 33,815
Finance lease receivables | 2,546 | 15 | 2,560
Hedge accounting derivatives | 479 | 0 | 479
Property and equipment | 309 | 0 | 309
Intangible assets | 633 | -369 | 264
Customer relationship | 0 | 2,170 | 2,170
Investments in associates and join ventures | 234 | 97 | 332
Deferred tax assets | 158 | -158 | 0
Other assets | 2,834 | 3 | 2,837
Total assets | 72,906 | 2,301 | 75,206
Financial liabilities held for trading | 2,925 | 0 | 2,925
Deposits from banks at amortised cost | 675 | 0 | 675
Deposits from customers at amortised cost | 55,059 | 0 | 55,059
Debt securities issued at amortised cost | 3,813 | 0 | 3,813
Lease liabilities | 92 | 0 | 92
Hedge accounting derivatives | 46 | 0 | 46
Provisions | 579 | 331 | 909
Deferred tax liability | 0 | 481 | 481
Other liabilities | 1,317 | 66 | 1,383
Total liabilities | 64,505 | 878 | 65,383

Given that the acquisition date of Santander Bank Polska occurred on 9 January 2026, the amounts are provisional, as Erste Group
has not yet finalised the measurement of certain assets acquired and liabilities assumed. In accordance with the requirements of
IFRS 3, Erste Group will finalise the accounting for the acquisition within a maximum of one year from the acquisition date. In
particular, based on additional information the valuation of loan portfolios, customer relationships, intangible assets, contingent
liabilities and resulting deferred tax balances might be adj usted. Consequently, finalisation of the acquisition accounting may result
in changes to the carrying amounts of the assets acquired, liabilities assumed and goodwill.
In accordance with IFRS 3, the assets acquired and the liabilities assumed as part of the purchase price allocation at the acquisition
date are generally measured at fair value. In accordance with IFRS 13, for assets and liabilities for which quoted prices in active
markets are not available, fair values are determined using valuation techniques that require the use of assumptions and
judgments. Absence of quoted market prices is common in the purchase price allocation process. Accordingly, the fair values
recognised in the PPA are subject to estimation uncertainty and reflect reasonable estimates based on information available at the
acquisition date, rather than precise or directly observable amounts.
The acquired receivables
Loans and advances to banks at AC

in EUR million | Amount
Fair value of the receivables | 3,740
Gross contractual amounts receivable | 3,740
Contractual cash flows not expected to be collected* | 0

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Loans and advances to customers at AC

in EUR million | Amount
Fair value of the receivables | 33,815
Gross contractual amounts receivable | 34,790
Contractual cash flows not expected to be collected* | 1,463

Loans and advances to customers at FVOCI

in EUR million | Amount
Fair value of the receivables | 749
Gross contractual amounts receivable | 783
Contractual cash flows not expected to be collected* | 36

Finance lease receivables

in EUR million | Amount
Fair value of the receivables | 2,560
Gross contractual amounts receivable | 2,562
Contractual cash flows not expected to be collected* | 53

Factoring receivables (Other assets)

in EUR million | Amount
Fair value of the receivables | 1,977
Gross contractual amounts receivable | 2,007
Contractual cash flows not expected to be collected* | 34

*Local credit loss allowances are used as a proxy as the calculations are still ongoing
Goodwill
Goodwill arising from the acquisition was measured as follows.

in EUR million | Amount
(i) Consideration transferred* | 7,035
(ii) Non-controlling interests measured based on a proportionate share in the recognised amounts of the assets and liabilities of Santander Bank Polska = 51% of (iii) | 5,010
(iii) Fair value of identifiable net assets** | 9,823
Goodwill = (i) + (ii) – (iii) | 2,222

* See part Consideration transferred
** See part Identifiable assets acquired and liabilities assumed
The goodwill recognised in connection with the acquisition primarily reflects:
_ anticipated synergies expected to arise from integrating the operations of Santander Bank Polska with those of Erste Group,
including operational efficiencies, enhanced distribution capabilities, optimisation of funding and liquidity management, and
cost rationalisation;
_ the value of assembled workforce and other intangible resources that do not meet the recognition criteria for identifiable
intangible assets under IAS 38;
_ expected future profitability of the combined entity that cannot be separately recognised as an intangible asset; and
_ the strategic benefits derived from expanding Erste Group’s footprint in a key EU banking market not otherwise available for
separate recognition.
Goodwill is not expected to be tax deductible.
ADDITIONS AND DISPOSALS 2025
Additions and disposals had no material impact on the financial position and performance of the Group.
ADDITIONS AND DISPOSALS 2024
On 11 September 2024 Erste Asset Management GmbH (EAM) has signed a purchase agreement to acquire 100% of Impact Asset
Management GmbH (IAM), which was previously majority-owned by Cubic (London) Ltd. IAM is an Investment Management
company focused on ESG- and Impact Investing. This acquisition enables EAM to strengthen its existing market position as leading
provider of ESG- and sustainable investments and expand the presence on the German market. The transaction was effectuated as
of 3 December 2024 with the approval of the financial market authority and the responsible competition authorities.
304
For the assessment of the purchase price allocation, an external expert opinion has been commissioned. The expert opinion
provides a goodwill of EUR 64 million and a customer relationship of EUR 30 million. The goodwill was calculated as the
difference between the adjusted net asset and the purchase price allocation and is not tax-deductible. No other significant assets
and liabilities were identified during the purchase price allocation.
Assets and liabilities recognized in first consolidation are as follows:

in EUR million | Carrying Amount
Cash and cash balances at central banks | 3
Financial assets at fair value through profit or loss | 5
Property and equipment | 0
Intangible assets – Goodwill | 64
Intangible assets – Customer relationships | 30
Trade and other receivables | 1
Tax assets | 0
Other assets | 1
Total Assets | 104
Other financial liabilities | 1
Tax liabilities | 7
Other liabilities | 2
Total Liabilities | 9
Capital | 95
Total Equity | 95
Total Liabilities and Equity | 104

The fair value of the total consideration amounts to EUR 95 million. It consists of the cash purchase price of EUR 91 million and
the seller’s right to 65% of the distributable annual profit at the time of dividend payment for the fiscal year 2024.
Since the transaction was completed just before 31 December 2024, no contribution from IAM is included in the annual results
2024 of Erste Group. If IAM had been included in Erste Group’s consolidated financial statements as of 1 January 2024, the
contribution to the operating income would have been EUR 15 million and the contribution to net result for the period would have
been EUR 5 millio n.
Other additions and disposals had no material impact on the financial position and performance of Erste Group.
58. Subsidiaries
A subsidiary is an entity controlled by another entity. All entities directly or indirectly controlled by Erste Group Bank AG are
consolidated in the Group financial statements on the basis of their annual accounts as of 31 December 2025 and for the year then
ended.
Non-controlling interests represent those portions of total comprehensive income and net assets that are neither directly nor
indirectly attributable to the owners of Erste Group Bank AG. Non-controlling interests are presented separately in the
consolidated statement of income, in the consolidated statement of comprehensive income and within equity on the consolidated
balance sheet.
CONTROL
Assessing the existence of control may require considerable accounting judgements, assumptions and estimates, notably in non-
standard situations such as:
_ power stemming both from voting rights and from contractual arrangements (or mostly from the latter);
_ exposure to variable returns from the involvement with the investee stemming from on-balance investments and from off-
balance commitments or guarantees (or mostly from the latter); or from readily identifiable income streams (e.g. dividends,
interest, fees) and from cost savings, economies of scale and/or operational synergies (or mostly from the latter).
In the case of Erste Group, such accounting judgements, assumptions and estimates have been primarily relevant for the
assessment of the following cases:
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i. The savings bank members of the Austrian cross-guarantee system
Erste Group Bank AG is a member of the Haftungsverbund (cross-guarantee system) of the Austrian savings bank sector. As of the
balance sheet date, all Austrian savings banks, in addition to Erste Group Bank AG, Erste Bank der oesterreichischen Sparkassen
AG and Bausparkasse der österreichischen Sparkassen Aktiengesellschaft, formed part of this cross-guarantee system. The
provisions of the agreement governing the Haftungsverbund are implemented by Haftungsverbund GmbH. Erste Group Bank AG
always holds directly and indirectly at least 51% of the voting rights of the steering company. The indirect voting rights are held via
Erste Bank der oesterreichischen Sparkassen AG and via other savings banks in which companies of Erste Group hold the majority
of voting rights.
Erste Group has also assessed whether it exercises control over those savings banks in the cross-guarantee system, in which the
group it forms, holds less than 50% of the voting rights.
From the contractual agreement the following substantive rights related to the savings banks arise, which, through control of
Haftungsverbund GmbH, are attributable to Erste Group Bank AG:
_ participation in the appointment of board members;
_ approval of budgets including capital decisions;
_ provision of binding guidelines in the areas of risk and liquidity management as well as internal audit; and
_ determination of thresholds for capital requirement including the payment of dividends.
Considering the magnitude of Erste Group Bank AG’s involvement with the member banks – whether in the form of synergies,
investments, commitments, guarantees, or access to common resources – the Group has significant exposure to the variable returns
of each of the members. As Erste Group Bank AG, via its direct and indirect participation in the Haftungsverbund GmbH, is able to
affect the variable returns through the rights stipulated in the contractual agreement, Erste Group Bank AG exercises control over
the savings banks.
ii. Investment funds under own management
The Group has assessed whether the investment funds it manages through its asset management subsidiaries are controlled and
hence shall be consolidated. This assessment has been made on the basis that power over such investment funds is generally
conferred based on the contractual arrangements appointing an Erste Group subsidiary as fund manager without any substantive
removal rights by fund’s investors. Furthermore, Erste Group made the conclusive judgement that its exposure to such own-
managed funds’ variable returns is basically considered as significant if, additionally to the exposure through management fees,
Erste Group is also exposed in the form of at least 20% investment in the fund. Furthermore, in its capacity as fund manager, Erste
Group is also able to affect the returns of the funds through its power. Following this assessment, investment funds under own
management in which Erste Group – directly or through its subsidiaries – has significant unit holdings (i.e. holds at least 20% of the
units issued by the fund) are deemed to be controlled and included in the scope of consolidation.
iii. Pension funds under own management
The Group has assessed whether the contractual arrangements appointing an Erste Group subsidiary as pension fund manager
(with no substantive removal rights by the fund’s participants) are generally expected to confer power over such funds, followed by
an assessment of the Group’s exposure/rights to the pension fund’s variable returns. The relevant legal requirements regulating the
activities of such pension funds in their respective jurisdictions were also considered, notably in assessing the significance of the
rights to variable returns from management fees, as well as of the exposure to losses from any guarantees that the fund manager
may be legally bound to. As a result of this review, the Czech pension fund ‘Transformovaný fond penzijního připojištění se státním
příspěvkem Česká spořitelna – penzijní společnost, a.s.’ (the ‘Transformed pension fund’) is not consolidated. There are no further
cases of application in Erste Group.
59. Investments in associates and joint ventures
In the case of Erste Group, all equity method investments are direct or indirect investments in associates and joint ventures over
which the Group exercises significant influence or joint control stemming from voting power greater than 20% up to 50%.
Carrying amounts of at equity measured entities

in EUR million | Dec 24 | Dec 25
Credit institutions | 47 | 78
Financial institutions | 120 | 168
Others | 114 | 218
Total | 280 | 465

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Aggregated financial information of at equity measured entities

in EUR million | Dec 24 | Dec 25
Total assets | 5,591 | 7,035
Total liabilities | 4,619 | 5,415
Income | 745 | 1,271
Profit/loss | 73 | 409

None of Erste Group’s investments accounted for using the equity method published price quotations.
Selected equity method investments where the Erste Group has strategic interest

| Dec 24 | Dec 25
in EUR million | Global Payments s.r.o. | Prvá stavebná | VBV - Betriebliche Altersvorsorge AG | Global Payments s.r.o. | Prvá stavebná | VBV - Betriebliche Altersvorsorge AG
Country of Incorporation | Czechia | Slovakia | Austria | Czechia | Slovakia | Austria
Place of business | Czechia | Slovakia | Austria | Czechia | Slovakia | Austria
Main business activity | Payment services | Financing building society | Insurance | Payment services | Financing building society | Insurance
Ownership held % | 49% | 35% | 32% | 49% | 35% | 32%
Voting rights held % | 49% | 35% | 29% | 49% | 35% | 29%
IFRS Classification (JV/A) | Associate | Associate | Associate | Associate | Associate | Associate
Reporting currency | CZK | EUR | EUR | CZK | EUR | EUR
Investee's financial information for the reporting year |  |  |  |
Cash and cash balances | 52 | 1 | 0 | 32 | 1 | 40
Other current assets | 112 | 107 | 46 | 113 | 133 | 67
Non-current assets | 127 | 2,906 | 48 | 240 | 2,758 | 486
Current liabilities | 121 | 2,341 | 0 | 131 | 2,216 | 0
Non-current liabilities | 18 | 351 | 27 | 19 | 341 | 209
Operating Income | 90 | 72 | 18 | 100 | 80 | 12
Post-tax result from continuing operations | 19 | 12 | -5 | 23 | 18 | 327
Total comprehensive income | 19 | 12 | -5 | 23 | 18 | 327
Depreciation and amortization | -9 | -7 | 0 | -10 | -7 | -2
Interest income | 1 | 104 | 18 | 1 | 106 | 12
Interest expense | -3 | -42 | 0 | -3 | -38 | 0
Tax expense/income | -2 | -8 | 0 | 0 | -6 | -5
Reconciliation of investee's net assets against equity investment's carrying amount |  |  |
Net assets attributable to Erste Group | 74 | 113 | 21 | 115 | 117 | 125
Accumulated impairment | 0 | -69 | 0 | 0 | -41 | 0
Carrying amount | 74 | 44 | 21 | 115 | 76 | 125

The classification of current and non-current financial assets and liabilities is based on the expected remaining maturities of assets
and liabilities.
In 2025 a reversal of the impairment of the carrying amount of Prvá stavebná was recognized in the amount of EUR 27 million
(2024: impairment of EUR 1 million).
Aggregated financial information of other equity method investments

| Dec 24 | Dec 25
in EUR million | Associates | Joint Ventures | Associates | Joint Ventures
Total comprehensive income | 8 | 22 | 36 | 6
Carrying amount | 89 | 38 | 110 | 38

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60. Unconsolidated structured entities
INTERESTS IN STRUCTURED ENTITIES
Assessing which entities are structured entities and which involvements in such entities are interests, may require considerable
accounting judgements and assumptions. In the case of Erste Group, such accounting judgements, assumptions and estimates have
been primarily relevant for assessing involvements with investment funds and securitisation vehicles.
For investment funds, Erste Group reached the conclusion that direct Group exposure would typically indicate an interest in these
structured entities, irrespective of whether such exposure comes from on-balance financial assets – mostly in the form of units held
in such funds, off-balance commitments given or management fees varying in relation to the assets under management (for own-
managed funds in general). As described under Note 58 Subsidiaries above, own-managed funds where the Group cumulatively
holds less than 20% of the related fund units in issue are not consolidated due to lack of control and thus are subject to specific
disclosures for unconsolidated structured entities. Erste Group uses following structured entities in the course of its business
activity.
INVESTMENT FUNDS
Direct investments in own-managed and third-party-managed investment funds as well as management fees earned for the
management of investment funds by subsidiaries of Erste Group are classified as interests in unconsolidated structured entities, if
they are not consolidated.
Direct investments in investment funds. Erste Group is invested in several mutual funds as well as in private investment funds
which are registered in Austria, Central- and Eastern Europe or other countries. The majority of those funds is managed by
subsidiaries of Erste Group, the smaller part of the funds being managed by independent third parties. The investments in funds
held by Erste Group do not constitute material investments (basically below 20%) and mostly take the form of redeemable fund unit
investments. They are measured at fair value on the Group’s balance sheet and are disclosed as debt securities either under line
item ‘Non-trading financial assets at fair value through profit or loss’ or ‘Financial assets held for trading’.
Management fees. Moreover, Erste Group earns management fees for providing investment management services as fund
manager (by subsidiaries of Erste Group); meaning for making the investment decision for the funds under management of the
relevant investment fund.
Beside the management fees for the services as fund manager Erste Group also receives distributions for their investments in fund
units. On the other side stand expenses for the administration of investment funds and fees for the business activity of investment
funds, especially custodian fees and fees for securities trading transactions. In the normal course of business activity Erste Group
enters into derivative transactions with own-managed unconsolidated investment funds. Moreover, own-managed unconsolidated
investment funds are also invested - over different time periods - in debt securities issued by or deposits of Erste Group. In restricted
cases Erste Group offers capital guarantees for own-managed unconsolidated investment funds.
The magnitude of the Group’s equity interests in unconsolidated investment funds may vary in the future depending on the future
performance of their respective underlying assets, relevant market circumstances and opportunities, or regulatory requirements.
OTHERS
To a lesser extent, Erste Group is also exposed (notably as lender) to unconsolidated structured entities having other business
activities. The respective loans and advances are either measured at amortised cost or at fair value through profit or loss, depending
whether they are SPPI-compliant or not. Debt securities include investments in Collateralised Mortgage Obligations as well as
securitizations.
MAXIMUM EXPOSURE TO UNCONSOLIDATED STRUCTURED ENTITIES
Erste Group’s maximum exposure to losses from its interests in unconsolidated structured entities is equal to the total fair value of
its fund units, bond investments, trading derivative assets, provided loans and off-balance sheet commitments and guarantees as of
the respective balance sheet date. The maximum exposure corresponds to the carrying amounts after risk provisions as of the
balance sheet date. For off-balance sheet loan commitments and guarantees the maximum exposure corresponds to the respective
nominal value.
The table below summarises the Group’s business relations to unconsolidated structured entities per balance sheet line item,
business activity and business location. The summary includes the assets identified as impaired at year-end, as well as related net
308
impairment losses/gains incurred during the year. The carrying amounts of the exposures summarized below are mostly referring
to assets already measured at fair value in the balance sheet of the Group. The carrying amounts of the remaining exposures
(notably ‘Loans and advances’) are materially similar to their fair values.

| Investment Funds |  |
in EUR million | Own-managed | Third-party managed | Total | Other | Total
Dec 25 |  |  |  |  |
Assets |  |  |  |  |
Equity instruments, thereof: | 0 | 0 | 0 | 7 | 7
at FVPL | 0 | 0 | 0 | 7 | 7
Debt securities, thereof: | 579 | 289 | 868 | 13 | 882
Financial assets HfT | 0 | 221 | 221 | 0 | 221
at FVPL | 579 | 68 | 647 | 13 | 660
Loans and advances | 53 | 0 | 53 | 219 | 271
Trading derivatives | 2 | 0 | 2 | 1 | 3
Total assets | 634 | 289 | 923 | 239 | 1,162
thereof impaired | 0 | 0 | 0 | 0 | 0
On-balance sheet exposure analysis per jurisdiction |  |  |  |  |
Austria | 614 | 0 | 614 | 0 | 614
Central and Eastern Europe | 20 | 16 | 36 | 226 | 262
Other jurisdictions | 0 | 273 | 273 | 13 | 286
Liabilities |  |  |  |  |
Equity instruments | 208 | 0 | 208 | 0 | 208
Debt securities issued | 367 | 0 | 367 | 0 | 367
Deposits | 1,486 | 0 | 1,486 | 23 | 1,508
Trading derivatives | 42 | 0 | 42 | 0 | 42
Total liabilities | 2,103 | 0 | 2,103 | 23 | 2,125
Off balance-sheet commitments | 440 | 0 | 440 | 123 | 563
Dec 24 |  |  |  |  |
Assets |  |  |  |  |
Equity instruments, thereof: | 0 | 0 | 0 | 39 | 39
at FVPL | 0 | 0 | 0 | 39 | 39
Debt securities, thereof: | 625 | 320 | 944 | 20 | 964
Financial assets HfT | 1 | 249 | 250 | 0 | 250
at FVPL | 624 | 70 | 695 | 20 | 715
Loans and advances | 192 | 0 | 192 | 213 | 405
Trading derivatives | 61 | 0 | 61 | 1 | 63
Total assets | 879 | 320 | 1,198 | 272 | 1,471
thereof impaired | 0 | 0 | 0 | 0 | 0
On-balance sheet exposure analysis per jurisdiction |  |  |  |  |
Austria | 846 | 0 | 846 | 0 | 846
Central and Eastern Europe | 33 | 13 | 46 | 252 | 298
Other jurisdictions | 0 | 307 | 307 | 20 | 327
Liabilities |  |  |  |  |
Equity instruments | 155 | 0 | 155 | 0 | 155
Debt securities issued | 350 | 0 | 350 | 0 | 350
Deposits | 1,601 | 0 | 1,601 | 30 | 1,631
Trading derivatives | 3 | 0 | 3 | 1 | 4
Total liabilities | 2,109 | 0 | 2,109 | 30 | 2,139
Off balance-sheet commitments | 261 | 0 | 261 | 192 | 453

309
Other disclosure matters
61. Related-party transactions
In the course of its ordinary business activity Erste Group enters into business relationships with related persons and entities.
Shareholders of Erste Group Bank AG are classified as related parties if they have significant influence over Erste Group. In
addition, Erste Group also defines as related parties subsidiaries that are controlled but not consolidated due to non-materiality as
well as associated entities and joint ventures that are included in the consolidated financial statements by the equity method.
Transactions between Erste Group Bank AG and fully consolidated companies are not recognised in the consolidated financial
statements as they have been eliminated. Furthermore, related persons consist of key management personnel, i.e. Management and
Supervisory Board members of Erste Group Bank AG. Moreover, Erste Group defines close family members of Management and
Supervisory Board members of Erste Group Bank AG, as well as companies which are controlled or significantly influenced by
Management and Supervisory Board members of Erste Group Bank AG, as other related parties. Banking transactions with related
persons and entities are done at arm’s length.
TRANSACTIONS WITH SHAREHOLDERS OF ERSTE GROUP BANK AG
Erste österreichische Spar-Casse Privatstiftung
In addition to its shareholding of the subscribed capital of Erste Group Bank AG, there are other factors giving Erste österreichische
Spar-Casse Privatstiftung (ERSTE Stiftung) significant influence over Erste Group. As of 31 December 2025, Erste Group had
liabilities toward ERSTE Foundation of EUR 65 million ( 2024: EUR 28 million). In addition, ERSTE Foundation held bonds issued
by Erste Group Bank AG in the amount of EUR 47 million (2024: EUR 46 million). The mentioned transactions resulted in interest
expenses of EUR 3 million (2024: EUR 2 million). Erste Group did not receive fee and commission income or rental income in 2024
and 2025. In 2025, ERSTE Foundation received a dividend of EUR 151 million (2024: EUR 136 million) on its shareholding in Erste
Group Bank AG.
Under article 15.1 of the articles of association of Erste Group Bank AG, for the duration of its assumption of liability for all current
and future debts in the event of default on payment by Erste Group Bank AG, the ERSTE Foundation is entitled, pursuant to
Section 92 (9) of the Austrian Banking Act, to delegate up to one-third of the Supervisory Board members to be elected at the
Annual General Meeting of Erste Group Bank AG.
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TRANSACTIONS WITH NOT CONSOLIDATED SUBSIDIARIES, ASSOCIATED ENTITIES AND JOINT VENTURES
Balances and off-balance exposures

| Dec 24 | Dec 25
in EUR million | Subsidiaries, not consolidated | Associated entities | Joint ventures | Subsidiaries, not consolidated | Associated entities | Joint ventures
Financial assets | 88 | 633 | 472 | 110 | 835 | 480
Equity instruments | 55 | 99 | 20 | 71 | 124 | 21
Debt securities | 0 | 5 | 0 | 0 | 0 | 0
Loans and advances | 34 | 528 | 451 | 39 | 711 | 460
Loans and advances credit institutions | 0 | 10 | 0 | 0 | 3 | 0
Loans and advances customers | 34 | 518 | 451 | 39 | 708 | 460
of which impaired | 0 | 0 | 0 | 0 | 0 | 0
of which finance lease receivables | 0 | 0 | 0 | 0 | 2 | 0
Financial liabilities | 28 | 230 | 14 | 28 | 196 | 15
Deposits | 28 | 230 | 14 | 28 | 196 | 15
Deposits from banks | 0 | 0 | 0 | 0 | 0 | 0
Deposits from customers | 28 | 230 | 14 | 28 | 196 | 15
Other financial instruments |  |  |  |  |  |
Loan commitments, financial guarantees and other commitments given (notional amount) | 2 | 307 | 92 | 9 | 433 | 90
of which defaulted | 0 | 0 | 0 | 0 | 0 | 0
Loan commitments, financial guarantees and other commitments received (notional amount) | 0 | 1 | 0 | 0 | 5 | 0
Derivatives (notional amount) | 0 | 0 | 0 | 0 | 7 | 0
Credit loss allowances and provisions | 0 | 0 | 0 | 0 | 0 | 0

Expenses and income

| 1-12 24 | 1-12 25
in EUR million | Subsidiaries, not consolidated | Associated entities | Joint ventures | Subsidiaries, not consolidated | Associated entities | Joint ventures
Interest income | 1 | 25 | 14 | 1 | 24 | 14
Fee and commission income | 0 | 2 | 2 | 0 | 2 | 2
Dividend income | 4 | 10 | 3 | 3 | 9 | 1
Interest expenses | 0 | -2 | 0 | 0 | -2 | 0
Fee and commission expenses | -2 | -2 | 0 | -2 | -1 | 0
Impairment result from financial instruments | 0 | -1 | 0 | 0 | 0 | 0

TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
Remuneration of Management and Supervisory Board members
The following table shows total remuneration of the members of the Management and Supervisory Board. The expenses were
recognised on an accrual basis in line with the respective rules of the underlying standards IAS 19 and IFRS 2. The amounts
disclosed correspond to the estimated disbursement as of the balance sheet date and may deviate from the ones which will be
finally paid.

| 1-12 24 | 1-12 25
in EUR million | Management board | Supervisory board | Total | Management board | Supervisory board | Total
Short-term employee benefits | 8 | 2 | 10 | 8 | 2 | 10
Post-employment benefits | 1 |  | 1 | 1 |  | 1
Other long-term benefits | 2 |  | 2 | 1 |  | 1
Share-based payment | 5 |  | 5 | 3 |  | 3
Total | 16 | 2 | 18 | 13 | 2 | 15

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Short-term employee benefits. Under this category salaries, benefits in kind, social security contributions and other short-term
benefits are included. Further, this category includes variable remuneration to be settled in cash within one year. Disclosed
remuneration for Supervisory Board members comprises supervisory board compensation, meeting fees as well as remuneration for
board functions in fully consolidated subsidiaries.
Post-employment benefits. The members of the Management Board participate in the defined contribution pension plan of Erste
Group according to the same principles as the employees of the Group (see Note 53 Provisions). Post-employment benefits shown in
the table above contain contribution payments to pension schemes and to severance schemes (‘Mitarbeitervorsorgekasse’).
Other long-term benefits. This category includes variable remuneration to be settled in cash, but payable - deferred over several
years - only after one year. In addition, net allocations to provisions for jubilee payments (see Note 53 Provisions) are also reported
under this category.
Share-based payment transactions. Expenses for variable share-based payments are disclosed under this line (refer to Note 62
Share-based payments, Share-based payment for the Management Board of Erste Group Bank AG).
On 31 December 2025 the outstanding amount of liability for variable remuneration towards members of the Management Board
amounts to EUR 8 million (2024: EUR 10 million). This amount includes liabilities resulting from the Share-based Payment
Program for the Management Board of Erste Group Bank AG (for the performance year 2021 for the first time) and liabilities from
unpaid deferred tranches from the Phantom Shares Program (for performance years up to 2021). For further details please refer to
Note 62 Share-based payments.
The members of the Management Board of Erste Group were granted a remuneration of 0.4% ( 2024: 0.5%) of the total personnel
expenses for their activities in the financial year 2024.
In 2025, EUR 2 million (2024: EUR 3 million) was paid in cash and 30,684 (2024: 40,607) share-equivalents were assigned to former
board members and their dependents.
BANKING TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
As of the end of 2025, loans and advances granted to members of the Management Board and Supervisory Board totalled
EUR 3 million (2024: EUR 2 million). Deposits of members of the Management Board and Supervisory Board at Erste Group
amounted to EUR 12 million (2024: EUR 14 million) in total. Members of the Management and Supervisory Board held bonds
issued by Erste Group of EUR 0 million (2024: EUR 0 million). Loan commitments and financial guarantees, issued in favour of
members of the Management and Supervisory Board totalled EUR 1 million (2024: EUR 0 million) as of the end of 2025. From
banking transactions with members of the Management Board and Supervisory Board Erste Group received interest income and fee
income of EUR 0 million (2024: EUR 0 million) in total. The interest expenses and fee expenses amounted to EUR 0 million (2024:
EUR 1 million).
TRANSACTIONS WITH OTHER RELATED PARTIES
Loans and advances to close family members of key management employees and companies over which key management
employees have control or significant influence (hereinafter referred to ‘other related parties’) totalled EUR 8 million ( 2024:
EUR 1 million) as of 31 December 2025. As of the end of 2025, deposits of other related parties at Erste Group amounted to
EUR 8 million (2024 : EUR 6 million) in total. Loan commitments and financial guarantees, issued in favour of other related parties
totalled EUR 0 million (2024: EUR 0 million) as of the end of 2025. From banking transactions with other related parties Erste
Group received interest income and fee income of EUR 1 million ( 2024: EUR 0 million) in total and paid interest and fee expenses
of EUR 0 million ( 2024 : EUR 0 million).
62. Share-based payments
The total expense recognised during the reporting period arising from share-based payment transactions amounts to
EUR 67 million (2024: EUR 58 million), thereof EUR 33 million (2024: EUR 32 million) relate to equity-settled share-based
payment transactions. At the end of the reporting period the liability arising from share-based payment transactions amounts to
EUR 76 million (2024: EUR 56 million). The intrinsic value of the liability is EUR 86 million (2024: EUR 70 million).
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SHARE-BASED PAYMENT FOR THE MANAGEMENT BOARD OF ERSTE GROUP BANK AG
The share-based remuneration plan for the management board of Erste Group Bank AG comprises short-term and long-term
variable remuneration components. The total amount of variable compensation is determined in the following year by a resolution
of the Supervisory Board.
Upfront share-based remuneration. 20% of the bonus will be converted into shares on the date of the Supervisory Board
resolution and is transferred to the participant’s securities deposit and retained for one year.
Deferred share-based remuneration. 30% of the bonus is converted into performance share units (PSUs) on the day of the
Supervisory Board resolution using the average share price of the last 30 trading days. A PSU represents an unsecured, conditional
right to receive shares of Erste Group Bank AG in the future. In the following five years, the initial number of PSUs is adjusted in a
range from 120% to 0% to the group’s performance based on performance criteria, which the Supervisory Board reviews on a yearly
basis and adjusts in exceptional cases. The final number of PSUs corresponds to the number of shares, which is transferred to the
participant’s securities deposit and retained for one year.
The awarded shares and PSUs are equity-settled share-based payments that vest by the end of the performance year. The
determination of the grant date requires an assessment of all the circumstances. As the Supervisory Board has significant
discretionary powers in connection with the assessment of the performance in the performance year, the grant is made with the
resolution of the Supervisory Board on the bonus awarded for the past performance year.
For the performance year 2025, it is expected that 9,791 shares and 14,687 PSUs (2024: 20,630 shares and 30,944 PSUs) will be
granted to participants. The fair value of PSUs on the measurement date is calculated based on a Monte Carlo simulation model
considering the achievement level of Erste Group performance over the next five years and the share price of Erste Group Bank AG.
The estimated fair value on the balance sheet date is EUR 2 million (2024 : EUR 3 million). In 2025, in total personnel expenses of
EUR 2 million (2024 : EUR 4 million) and a corresponding retained earnings reserve were recognised.
PHANTOM SHARES PROGRAM
Erste Group grants selected employees every year a bonus for services rendered in the past year (vesting period). If the individual
bonus exceeds a certain limit, the final payout amount of at least 25% depends on the development of the average, volume-
weighted, daily price of Erste Group shares in subsequent years (phantom share program). The program applies to Erste Group
entities in different countries, with different amounts and share equivalents. The share equivalents (phantom shares) are divided
into several tranches, which differ in the duration of the observation period for the development of the Erste Group share price.
The phantom share program meets the criteria for cash-settled share-based payments in accordance with IFRS 2.
The estimated fair value of variable compensation for share equivalents is recognised in profit or loss. The liability for stock
equivalents that have not yet been paid out is continuously measured at fair value until payment is made. Fair value changes and
changes of the final allocation in subsequent years are recognised in profit or loss. To determine the fair value, the number of share
equivalents not yet paid out as at the balance sheet date is multiplied by the estimated average price of Erste Group shares for the
respective payout year. The fair values of the share equivalents for the respective payout year are determined using an option
pricing model (Black-Scholes model). The main parameters are the share price of the Erste Group share on the balance sheet date
and the dividend payments expected until payment.
For 2025, it is expected that 141,206 (2024: 233,980) share equivalents with a fair value of EUR 14 million (2024: EUR 13 million)
will be granted to eligible employees. The total expense recognised in the reporting period for the phantom share program amounts
to EUR 34 million ( 2024: EUR 26 million), the carrying amount of the liability as at the balance sheet date is EUR 76 million (2024:
EUR 56 million). The intrinsic value of the liability from unpaid share equivalents is EUR 86 million (2024: EUR 70 million).
WESHARE BY ERSTE GROUP PROGRAM
The WeShare by Erste Group-Participation program and the WeShare by Erste Group-Investment Plus program are equity-settled
share-based payment transactions. Both programs are offered to employees of Erste Group provided that specific requirements (e.g.
capital and liquidity requirements, payment of dividends, ECB approval) are met.
Under the WeShare by Erste Group-Investment Plus program all employees, who had been employed by an entity of the Erste
Group, from March/April 2025 until June 2025 could voluntarily invest in Erste Group shares and receive free shares depending on
the amount of their personal investment. The WeShare by Erste Group-Investment Plus program was settled in June 2025. The
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number of free shares, which were granted under this program for the reporting period, is 229,226 (2024: 349,019). Personnel
expenses in the amount of EUR 16 million (2024: EUR 16 million) were recorded.
Under the WeShare by Erste Group-Participation program all employees, who have been employed by an entity of the Erste Group
for at least six months in year 2025 and are still employed until the transfer of the shares to the employees in June 2026 are entitled
to receive shares in an equivalent amount of EUR 350. The expected number of free shares, which are granted under this program
for the period, is 171,054 (2024: 295,569). Based on the number of entitled employees, personnel expenses in the amount of
EUR 7 million (2024: EUR 7 million) were recorded and a corresponding reserve in retained earnings was created. Furthermore,
during 2025 an expense of EUR 8 million was booked, which is related to the active employment requirement of the WeShare by
Erste Group-Participation that was offered to employees in 2024.
63. Fees of the Auditors
The following table contains fees charged by the auditors of Erste Group Bank AG and subsidiaries for the financial years 2025 and
2024; the auditors being Sparkassen-Prüfungsverband (auditing agency) and Price Waterhouse Coopers. The values for
PricewaterhouseCoopers comprise the services of ‘PwC Wirtschaftsprüfung GmbH’ as well as the PwC network. The amounts in
the table include value-added tax.

in EUR million | Dec 24 | Dec 25
Statutory audit of financial statements/consolidated financial statements | 17 | 18
Audit fees - PwC | 7 | 8
Audit fees - Sparkassen-Prüfungsverband | 10 | 10
Other assurance services | 5 | 5
Other assurance services - PwC | 3 | 3
Other assurance services - Sparkassen-Prüfungsverband | 2 | 2
Tax consulting | 0 | 0
Tax consulting - PwC | 0 | 0
Tax consulting - Sparkassen-Prüfungsverband | 0 | 0
Other services | 1 | 2
Other services - PwC | 1 | 1
Other services - Sparkassen-Prüfungsverband | 0 | 0
Total | 24 | 25

The Sparkassen-Prüfungsverband (Austrian Savings Bank Auditing Association) provided audit services for an amount of
EUR 2 million (2024: EUR 2 million) to Erste Group Bank AG and EUR 7 million (2024: EUR 8 million) for the subsidiaries. For
other assurance services EUR 0 million (2024: EUR 0 million) were charged to the subsidiaries of Erste Group Bank AG while
EUR 0 million ( 2024: EUR 0 million) is the amount for other services provided to the subsidiaries. The amounts in the table above
also include fees for services provided by SPV Wirtschaftsprüfungsges.m.b.H..
The auditor ‘PwC Wirtschaftsprüfung GmbH’ provided audit services to Erste Group Bank AG for EUR 2 million (2024:
EUR 2 million) and to the subsidiaries for EUR 1 million (2024: EUR 1 million). An amount of EUR 5 million (2024: EUR 5 million)
was charged for audit services of the PricewaterhouseCoopers network to the subsidiaries. The total amount for other assurance
services provided by ‘PwC Wirtschaftsprüfung GmbH’ is EUR 1 million (2024: EUR 1 million).
64. Assets held for sale and liabilities associated with assets held for sale
Assets classified as held for sale and assets belonging to disposal groups held for sale are reported under the balance sheet line item
‘Assets held for sale’. Liabilities belonging to the disposal groups held for sale are presented on the balance sheet under the line
item ‘Liabilities associated with assets held for sale’.
Non-current assets and disposal groups that are classified as held for sale are measured at the lower of carrying amount and fair
value less costs to sell. Should the impairment loss in a disposal group exceed the carrying amount of the assets that are within the
scope of IFRS 5 measurement requirements, there is no specific guidance on how to treat such a difference. Erste Group recognises
this difference as a provision under the balance sheet line item ‘Provisions’.

in EUR million | Dec 24 | Dec 25
Assets held for sale | 154 | 211
Liabilities associated with assets held for sale | 93 | 84

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As of the end of 2025, ‘Assets held for sale’ include mainly land and buildings in amount of EUR 194 million ( 2024:
EUR 147 million). This includes an amount of EUR 96 million classified as ‘Assets held for sale’ by Česká spořitelna and relates to
the planned sale of the current headquarter. EUR 89 million was classified as ‘Assets held for sale’ by Immorent subgroup in
connection with the planned sale of commercial premises.
In addition, assets and liabilities of Erste Card Club in Croatia were included as of the end of 2025, which met the criteria for the
classification as a ‘disposal group held for sale’ for the first time in 2024. The sale was completed on 2nd January 2026.
Assets held for sale are measured at fair value on non-recurring basis when their carrying amount is impaired down to fair value
less costs to sell. The fair values are determined by experts with recognised and relevant professional qualification.
Fair values and fair value hierarchy

in EUR million | Carrying amount | Fair value | Level 1 | Level 2 | Level 3
Dec 25 |  |  |  |  |
Assets for which the FV is presented in the balance sheet |  |  |  |  |
Assets held for sale | 116 | 117 | 0 | 0 | 117
Dec 24 |  |  |  |  |
Assets for which the FV is presented in the balance sheet |  |  |  |  |
Assets held for sale | 151 | 151 | 0 | 0 | 151

65. Assets and liabilities denominated in foreign currencies and outside Austria and
return on assets
Assets and liabilities not denominated in EUR

in EUR million | Dec 24 | Dec 25
Assets | 125,825 | 127,754
Liabilities | 97,546 | 103,304

Assets and liabilities outside Austria

in EUR million | Dec 24 | Dec 25
Assets | 220,770 | 228,729
Liabilities | 163,110 | 165,681

Return on assets (net profit after tax for the year divided by total assets at the reporting period) was 1.17% at 31 December 2025
(2024: 1.12%).
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66. Analysis of remaining maturities
Expected remaining maturities of assets and liabilities

| Dec 24 | Dec 25
in EUR million | < 1 year | > 1 year | < 1 year | > 1 year
Cash and cash balances | 25,129 | 0 | 27,573 | 0
Financial assets HfT | 7,860 | 3,602 | 6,043 | 3,334
Derivatives | 699 | 528 | 481 | 348
Other financial assets held for trading | 7,162 | 3,074 | 5,562 | 2,986
Non-trading financial assets at FVPL | 501 | 2,539 | 710 | 3,123
Equity instruments | 7 | 458 | 5 | 518
Debt securities | 475 | 993 | 702 | 1,084
Loans and advances to customers | 19 | 1,089 | 2 | 1,522
Financial assets at FVOCI | 1,455 | 8,043 | 2,432 | 6,749
Equity instruments | -9 | 118 | 1 | 112
Debt securities | 1,463 | 7,925 | 2,431 | 6,637
Financial assets at AC | 56,156 | 232,738 | 51,334 | 250,373
Debt securities | 4,581 | 48,307 | 5,815 | 52,840
Loans and advances to banks | 22,793 | 4,178 | 16,430 | 4,397
Loans and advances to customers | 28,781 | 180,252 | 29,089 | 193,136
Finance lease receivables | 642 | 4,606 | 558 | 4,732
Hedge accounting derivatives | 3 | 177 | 18 | 214
Fair value changes of hedged items in portfolio hedge of interest rate risk | -410 | 390 | -1 | -62
Property and equipment | 0 | 2,754 | 0 | 2,941
Investment properties | 0 | 1,678 | 0 | 1,913
Intangible assets | 0 | 1,382 | 0 | 1,413
Investments in associates and joint ventures | 0 | 280 | 0 | 465
Current tax assets | 45 | 0 | 84 | 0
Deferred tax assets | 0 | 266 | 0 | 171
Assets held for sale | 154 | 0 | 211 | 0
Trade and other receivables | 2,582 | 95 | 2,816 | 130
Other assets | 1,006 | 61 | 1,162 | 140
Total Assets | 95,123 | 258,613 | 92,940 | 275,634
Financial liabilities HfT | 595 | 1,226 | 656 | 1,756
Derivatives | 519 | 630 | 557 | 534
Other trading liabilities | 77 | 596 | 99 | 1,222
Financial liabilities at FVPL | 2,200 | 8,081 | 2,184 | 7,673
Deposits | 44 | 71 | 112 | 62
Debt securities issued | 2,020 | 8,010 | 1,657 | 7,611
Other financial liabilities | 136 | 0 | 415 | 0
Financial liabilities at AC | 161,529 | 143,803 | 150,281 | 165,887
Deposits from banks | 14,697 | 6,564 | 9,220 | 7,698
Deposits from customers | 138,272 | 103,263 | 131,817 | 121,000
Debt securities issued | 7,863 | 33,996 | 8,447 | 37,156
Other financial liabilities | 697 | -20 | 796 | 32
Lease liabilities | 46 | 645 | 90 | 631
Hedge accounting derivatives | 10 | 184 | 58 | 112
Provisions | 458 | 1,168 | 421 | 994
Current tax liabilities | 241 | 0 | 323 | 0
Deferred tax liabilities | 0 | 31 | 0 | 52
Liabilities associated with assets held for sale | 93 | 0 | 84 | 0
Other liabilities | 2,337 | 321 | 2,399 | 307
Total liabilities | 167,509 | 155,459 | 156,497 | 177,412

In the line ‘Deposits to customers’ the amounts were broken down into the columns ‘< 1 year’ and ‘> 1 year’ on the following basis.
For non-maturing deposits such as current accounts and savings deposits, the liquidity model used for interest rate risk in the
banking book was applied. Core deposits, which are assumed to remain with the bank over a longer horizon, are allocated to the
‘> 1 year’ bucket. Non‑core deposits are expected to flow out within 1 year are therefore included in the ‘< 1 year’ bucket. All
deposits with a given maturity structure, such as term deposits, are allocated according to their remaining contractual maturity. To
comply with this method, the prior-year figure was adjusted.
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67. Events after the balance sheet date
Acquisition of Santander Bank Polska S.A. and subsidiaries
In May 2025, Erste Group Bank AG and Banco Santander S.A. entered into an agreement under which Erste Group acquired a 49%
stake in Santander Bank Polska Group S.A. and a 50% stake in Santander Towarzystwo Funduszy Inwestycyjnych S.A.. The
transaction was closed on 9 January 2026, the acquisition date, when Erste Group obtained control of the companies. Further
details can be found in Note 57 Scope of consolidation - additions and disposals.
Sale of Erste Card Club d.o.o.
The sale of Erste Card Club d.o.o. was completed on 2 January 2026 and EUR 101 million in cash was received. The company had
already been classified as held for sale as of 31 December 2025.
68. Country by country reporting
The following country by country breakdown complies with the disclosure requirements of Article 89 of the EU Capital
Requirements Directive IV:

in EUR million | Operating income | Pre-tax result from continuing operations (ex dividend income) | Taxes on income
Dec 25 |  |  |
Austria | 8,358 | 2,233 | -432
Croatia | 598 | 294 | -52
Czech Republic | 2,475 | 1,374 | -237
Hungary | 1,013 | 447 | -66
Romania | 1,304 | 854 | -124
Serbia | 195 | 78 | -8
Slovakia | 919 | 478 | -162
Other locations | 62 | -117 | -21
Consolidation | -3,265 | -277 | -1
Total | 11,659 | 5,364 | -1,103
Dec 24 |  |  |
Austria | 7,325 | 2,296 | -405
Croatia | 570 | 303 | -58
Czech Republic | 2,344 | 1,254 | -223
Hungary | 970 | 427 | -64
Romania | 1,244 | 666 | -105
Serbia | 187 | 77 | -9
Slovakia | 836 | 452 | -167
Other locations | 305 | 135 | -21
Consolidation | -2,603 | -652 | -1
Total | 11,178 | 4,958 | -1,053

The unconsolidated profit before tax is presented for each country in which the Group operates. The profit before tax, excluding
dividend income, is presented in accordance with the Transfer Pricing Documentation Act. The consolidation column leads to the
consolidated profit. Income tax is allocated according to the expenses incurred in the respective tax jurisdictions in which the
Group operates. The previous year's figures were adjusted to reflect the new structure.
For information regarding the country of residence of each fully consolidated entity refer to Note 70 Details of the companies wholly
or partly owned by Erste Group as of 31 December 2025. Information about the geographical split of the average number of
headcounts employed in Erste Group throughout 2025 is disclosed in Note 8 General administrative expenses.
69. Government grants
A government grant is recognised in Erste Group’s financial statements, when there is reasonable assurance that it will be received
and that Erste Group will comply with the conditions attached to it. Grants that compensate for the acquisition of assets are
presented as deduction from the cost of the related asset and are recognised in profit or loss over the periods and in the proportions,
317
in which depreciation and amortisation expenses on those assets are recognised. Grants that compensate for expenses incurred are
presented as deduction of relevant expenses in the period in which the expenses are incurred.
The total amount of government grants recognised in the group adds up to EUR 18 million (2024: EUR 7 million). Out of this total
amount, EUR 12 million ( 2024: EUR 1 million) relates to government grants received by Czech entities, primarily in connection
with the Modernisation Fund. The remaining government grants have been reported by Austrian entities.
70. Details of the companies wholly or partly owned by Erste Group as of 31
December 2025
The table below presents material, fully consolidated subsidiaries, investments in associates accounted for at equity and other
investments.

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
Fully consolidated subsidiaries |  |  |
Credit institutions |  |  |
Banca Comerciala Romana SA | Bucharest | 99.9 | 99.9
Banka Sparkasse d.d. | Ljubljana | 28.0 | 28.0
Bausparkasse der österreichischen Sparkassen Aktiengesellschaft | Wien | 100.0 | 100.0
BCR Banca pentru Locuinte SA | Bucharest | 99.9 | 99.9
Ceska sporitelna, a.s. | Praha | 100.0 | 100.0
Die Zweite Wiener Vereins-Sparcasse | Wien | 0.0 | 0.0
Dornbirner Sparkasse Bank AG | Dornbirn | 0.0 | 0.0
Erste & Steiermärkische Bank d.d. | Rijeka | 69.3 | 69.3
ERSTE BANK AD PODGORICA | Podgorica | 69.3 | 69.3
ERSTE BANK AKCIONARSKO DRUSTVO, NOVI SAD | Novi Sad | 80.5 | 80.5
Erste Bank der oesterreichischen Sparkassen AG | Wien | 100.0 | 100.0
Erste Bank Hungary Zrt | Budapest | 100.0 | 100.0
Erste Group Bank AG | Wien | 0.0 | 0.0
ERSTE Jelzálogbank Zártkörüen Müködö Részvénytársaság | Budapest | 100.0 | 100.0
Erste Lakas-Takarekpenztar Zartkoruen Mukodo Reszvenytarsasag | Budapest | 100.0 | 100.0
Kärntner Sparkasse Aktiengesellschaft | Klagenfurt | 25.0 | 25.0
KREMSER BANK UND SPARKASSEN AKTIENGESELLSCHAFT | Krems | 0.0 | 0.0
Lienzer Sparkasse AG | Lienz | 0.0 | 0.0
Slovenska sporitelna, a. s. | Bratislava | 100.0 | 100.0
Sparkasse Baden | Baden | 0.0 | 0.0
Sparkasse Bank AD Skopje | Skopje | 24.1 | 24.1
Sparkasse Bank dd Bosna i Hercegovina | Sarajevo | 25.0 | 25.0
Sparkasse Bludenz Bank AG | Bludenz | 0.0 | 0.0
Sparkasse Bregenz Bank Aktiengesellschaft | Bregenz | 0.0 | 0.0
Sparkasse der Gemeinde Egg | Egg | 0.0 | 0.0
Sparkasse der Stadt Amstetten AG | Amstetten | 0.0 | 0.0
Sparkasse der Stadt Feldkirch | Feldkirch | 0.0 | 0.0
Sparkasse der Stadt Kitzbühel | Kitzbühel | 0.0 | 0.0
Sparkasse Eferding-Peuerbach-Waizenkirchen | Eferding | 0.0 | 0.0
Sparkasse Feldkirchen/Kärnten | Feldkirchen | 0.0 | 0.0
SPARKASSE FRANKENMARKT AKTIENGESELLSCHAFT | Frankenmarkt | 0.0 | 0.0
Sparkasse Hainburg-Bruck-Neusiedl Aktiengesellschaft | Hainburg | 75.0 | 75.0
Sparkasse Haugsdorf AG | Haugsdorf | 0.0 | 0.0
Sparkasse Herzogenburg-Neulengbach Bank Aktiengesellschaft | Herzogenburg | 0.0 | 0.0
Sparkasse Horn-Ravelsbach-Kirchberg Aktiengesellschaft | Horn | 0.0 | 0.0
Sparkasse Imst AG | Imst | 0.0 | 0.0
Sparkasse Korneuburg AG | Korneuburg | 0.0 | 0.0
Sparkasse Kufstein Tiroler Sparkasse von 1877 | Kufstein | 0.0 | 0.0
Sparkasse Lambach Bank Aktiengesellschaft | Lambach | 0.0 | 0.0
Sparkasse Langenlois | Langenlois | 0.0 | 0.0
Sparkasse Mittersill Bank AG | Mittersill | 0.0 | 0.0
Sparkasse Mühlviertel-West Bank Aktiengesellschaft | Rohrbach | 40.0 | 40.0
Sparkasse Mürzzuschlag Aktiengesellschaft | Mürzzuschlag | 0.0 | 0.0
Sparkasse Neuhofen Bank Aktiengesellschaft | Neuhofen | 0.0 | 0.0
Sparkasse Neunkirchen | Neunkirchen | 0.0 | 0.0

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|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
SPARKASSE NIEDERÖSTERREICH MITTE WEST AKTIENGESELLSCHAFT | St. Pölten | 0.0 | 0.0
Sparkasse Oberösterreich Bank AG | Linz | 10.0 | 10.0
Sparkasse Pöllau AG | Pöllau | 0.0 | 0.0
Sparkasse Pottenstein N.Ö. | Pottenstein | 0.0 | 0.0
Sparkasse Poysdorf AG | Poysdorf | 0.0 | 0.0
Sparkasse Pregarten - Unterweißenbach AG | Pregarten | 0.0 | 0.0
Sparkasse Rattenberg Bank AG | Rattenberg | 0.0 | 0.0
Sparkasse Reutte AG | Reutte | 0.0 | 0.0
Sparkasse Ried im Innkreis-Haag am Hausruck | Ried | 0.0 | 0.0
Sparkasse Salzkammergut AG | Bad Ischl | 0.0 | 0.0
Sparkasse Scheibbs AG | Scheibbs | 0.0 | 0.0
Sparkasse Schwaz AG | Schwaz | 0.0 | 0.0
Sparkasse Voitsberg-Köflach Bankaktiengesellschaft | Voitsberg | 4.2 | 4.2
Stavebni sporitelna Ceske sporitelny, a.s. | Praha | 100.0 | 100.0
Steiermärkische Bank und Sparkassen Aktiengesellschaft | Graz | 25.0 | 25.0
Tiroler Sparkasse Bankaktiengesellschaft Innsbruck | Innsbruck | 75.0 | 75.0
Waldviertler Sparkasse Bank AG | Zwettl | 0.0 | 0.0
Wiener Neustädter Sparkasse | Wiener Neustadt | 0.0 | 0.0
Financial institutions |  |  |
"Die Kärntner" Trust-Vermögensverwaltungsgesellschaft m.b.H. | Klagenfurt | 25.0 | 25.0
ACP Financial Solutions GmbH | Wien | 75.0 | 75.0
Alea-Grundstückverwaltung Gesellschaft m.b.H. | Wien | 100.0 | 100.0
BCR Leasing IFN SA | Bucharest | 99.9 | 99.9
BCR Payments Services SRL | Sibiu | 99.9 | 99.9
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA | Bucharest | 99.9 | 99.9
CEE Property Development Portfolio 2 a.s. | Praha | 100.0 | 100.0
Ceska sporitelna - penzijni spolecnost, a.s. | Praha | 100.0 | 100.0
DENAR-Immorent Grundverwertungsgesellschaft m.b.H. | Wien | 62.5 | 62.5
DIE ERSTE Leasing Grundstückverwaltungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Dostupné bydlení Ceské sporitelny, a.s. | Praha | 100.0 | 100.0
Društvo za leasing Sparkase Lizing d.o.o. Skopje | Skopje | 24.6 | 24.6
EB Erste Bank Internationale Beteiligungen GmbH | Wien | 100.0 | 100.0
Erste & Steiermärkische S-Leasing drustvo s ogranicenom odgovornoscu za leasing vozila i strojeva | Zagreb | 47.1 | 47.1
Erste Alapkezelo Zrt. (Erste Asset Management Ltd.) | Budapest | 91.1 | 91.1
Erste Asset Management d.o.o. | Zagreb | 91.1 | 91.1
Erste Asset Management GmbH | Wien | 91.1 | 91.1
Erste Befektetesi Zrt. | Budapest | 100.0 | 100.0
ERSTE CARD CLUB d.o.o. | Zagreb | 69.3 | 69.3
Erste Finance (Delaware) LLC | Wilmington | 100.0 | 100.0
Erste Group Immorent CR s.r.o. | Praha | 100.0 | 100.0
Erste Group Immorent International Holding GmbH | Wien | 100.0 | 100.0
Erste Group Immorent Lizing Zartkörüen Müködö Reszvenytarsasag | Budapest | 100.0 | 100.0
ERSTE GROUP IMMORENT LJUBLJANA, financne storitve, d.o.o. | Ljubljana | 100.0 | 100.0
ERSTE Immobilien Kapitalanlagegesellschaft m.b.H. | Wien | 68.7 | 68.7
Erste Reinsurance S.A. | Luxembourg | 100.0 | 100.0
Erste Securities Polska S.A. | Warsaw | 100.0 | 100.0
Factoring Ceske sporitelny a.s. | Praha | 100.0 | 100.0
GIROLEASING-Mobilienvermietungsgesellschaft m.b.H. | Wien | 62.5 | 62.5
Hotel- und Sportstätten-Beteiligungs-, Errichtungs- und Betriebsgesellschaft m.b.H. Leasing KG | St. Pölten | 54.6 | 54.6
ImmoRent Einkaufszentren Verwaltungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Immorent-Clio-Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Immorent-Gamma-Grundstücksverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-GREKO Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Immorent-Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-NERO Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-Raiffeisen Fachhochschule Errichtungs- und BetriebsgmbH | Wien | 55.0 | 55.0
IMMORENT-RASTA Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-RIO Grundverwertungsgesellschaft m.b.H. | Wien | 55.0 | 55.0
IMMORENT-RIWA Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Immorent-Theta-Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-TRIAS Grundverwertungsgesellschaft m.b.H. | Wien | 62.5 | 62.5

319

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
IMNA-Immorent Immobilienleasing GmbH | Wien | 100.0 | 100.0
Impact Asset Management GmbH | Wien | 91.1 | 91.1
Intermarket Bank AG | Wien | 93.8 | 93.8
IPS Fonds Gesellschaft bürgerlichen Rechts | Wien | 65.2 | 67.5
IR REAL ESTATE LEASING d.o.o. u likvidaciji | Zagreb | 92.5 | 92.5
Leasing Ceske sporitelny, a.s. | Praha | 100.0 | 100.0
MEKLA Leasing Gesellschaft m.b.H. | Wien | 100.0 | 100.0
NAXOS-Immorent Immobilienleasing GmbH | Wien | 100.0 | 100.0
OREST-Immorent Leasing GmbH | Wien | 100.0 | 100.0
PAROS-Immorent Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
PREDUZECE ZA FINANSIJSKI LIZING ERSTE LEASING DOO, BEOGRAD | Belgrade | 66.6 | 66.6
REICO investicni spolecnost Erste Asset Management, a.s. | Praha | 91.1 | 91.1
RHEA-Immorent Holding GmbH | Wien | 100.0 | 100.0
s ASG Sparkassen Abwicklungs- und Servicegesellschaft mbH | Graz | 25.0 | 25.0
s Autoleasing SK, s.r.o. | Bratislava | 100.0 | 100.0
s Wohnbaubank AG | Wien | 100.0 | 100.0
s Wohnfinanzierung Beratungs GmbH | Wien | 100.0 | 100.0
SAI Erste Asset Management S.A. | Bucharest | 91.1 | 91.1
sBAU Holding GmbH | Wien | 100.0 | 100.0
SCIENTIA Immorent GmbH | Wien | 100.0 | 100.0
Sieben Tiroler Sparkassen Beteiligungsgesellschaft m.b.H. | Kufstein | 0.0 | 0.0
S-Leasing Immobilienvermietungsgesellschaft m.b.H. | Wiener Neustadt | 33.3 | 33.3
SPARKASSE IMMORENT Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Sparkasse Leasing društvo sa ogranicenom odgovornošcu za leasing nekretnina, vozila, brodova i mašina, Sarajevo | Sarajevo | 25.0 | 25.0
Sparkasse Leasing S, družba za financiranje d.o.o. | Ljubljana | 28.0 | 28.0
Sparkasse Oberösterreich Kapitalanlagegesellschaft m.b.H. | Linz | 14.1 | 14.1
Sparkasse Pay poslovanje s kreditnimi karticami, d.o.o. | Ljubljana | 28.0 | 28.0
TAURIS-Immorent Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Theuthras-Immorent Grundverwertungsgesellschaft m.b.H. | Wien | 62.5 | 62.5
WIESTA-Immorent Immobilienleasing GmbH | Wien | 100.0 | 100.0
Other |  |  |
"Die Kärntner" Trust- Vermögensverwaltungsgesellschaft m.b.H. & Co KG | Klagenfurt | 25.0 | 25.0
"Nare" Grundstücksverwertungs-Gesellschaft m.b.H. | Wien | 100.0 | 100.0
BP Antal, s.r.o. | Praha | 100.0 | 100.0
BTV-Beteiligungs-, Treuhand-, Vermögens-Verwaltungsgesellschaft m.b.H. | Klagenfurt | 25.0 | 25.0
Budejovicka development, s. r. o. | Praha | 100.0 | 100.0
Cinci-Immorent Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Collat-real Korlatolt Felelössegü Tarsasag | Budapest | 100.0 | 100.0
Commerzbank Zrt. "v.a." | Budapest | 100.0 | 100.0
CPDP 2003 s.r.o. | Praha | 100.0 | 100.0
CS NHQ, s.r.o. | Praha | 100.0 | 100.0
CS Seed Starter, a.s. | Praha | 100.0 | 100.0
DBCS Cerny Most, s.r.o. | Praha | 100.0 | 100.0
DBCS Opatov, s.r.o. | Praha | 100.0 | 100.0
DBCS Prosek, s.r.o. | Praha | 100.0 | 100.0
DBCS Zdar s.r.o. | Praha | 100.0 | 100.0
DIE ERSTE Leasing Grundbesitzgesellschaft m.b.H. | Wien | 100.0 | 100.0
DIE ERSTE Leasing Immobilienbesitzgesellschaft m.b.H. | Wien | 100.0 | 100.0
DIE ERSTE Leasing Immobilienverwaltungs- und -vermietungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Dienstleistungszentrum Leoben GmbH | Wien | 51.0 | 51.0
EBB Beteiligungen GmbH | Wien | 100.0 | 100.0
EB-Grundstücksbeteiligungen GmbH | Wien | 100.0 | 100.0
EB-Restaurantsbetriebe Ges.m.b.H. | Wien | 100.0 | 100.0
EKZ-Immorent Vermietung GmbH | Wien | 100.0 | 100.0
Erste Bank und Sparkassen Leasing GmbH | Wien | 100.0 | 100.0
ERSTE CAMPUS Immobilien AG & Co KG | Wien | 100.0 | 100.0
Erste Digital GmbH | Wien | 81.8 | 81.8
Erste Grantika Advisory, a.s. | Brno | 100.0 | 100.0
Erste Group Card Processor d.o.o. | Zagreb | 100.0 | 100.0
Erste Group Immorent GmbH | Wien | 100.0 | 100.0
ERSTE GROUP IMMORENT HRVATSKA drustvo s ogranicenom odgovornoscu za upravljanje | Zagreb | 100.0 | 100.0

320

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
Erste Group Immorent Slovensko s.r.o. | Bratislava | 100.0 | 100.0
Erste Group Services GmbH | Wien | 100.0 | 100.0
ERSTE Immobilien Alpha Eggenberger Gürtel GmbH & Co KG | Wien | 0.0 | 89.9
ERSTE Immobilien Alpha Lemböckgasse 59 GmbH & Co KG | Wien | 90.0 | 90.0
ERSTE Immobilien Alpha Ulmgasse GmbH & Co. KG | Wien | 0.0 | 90.0
ERSTE Immobilien Gamma Lemböckgasse GmbH & Co KG | Wien | 90.0 | 90.0
ERSTE Immobilien Gamma Seepark Campus West GmbH & Co KG | Wien | 90.0 | 90.0
Erste Ingatlan Fejleszto, Hasznosito es Mernoki Kft. | Budapest | 100.0 | 100.0
ERSTE NEKRETNINE d.o.o. za poslovanje nekretninama | Zagreb | 69.3 | 69.3
Erste Operations GmbH | Wien | 100.0 | 100.0
Erste Sparkassen Services GmbH | Wien | 100.0 | 46.2
ERSTE Tower Kft. | Budapest | 100.0 | 100.0
Eva-Immobilienverwaltungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Eva-Realitätenverwaltungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
F & S Leasing GmbH | Klagenfurt | 100.0 | 100.0
FUKO-Immorent Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
George Labs GmbH | Wien | 100.0 | 100.0
Graben 21 Liegenschaftsverwaltung GmbH | Wien | 100.0 | 100.0
Haftungsverbund GmbH | Wien | 63.1 | 63.1
HATHOR Grundverwertungsgesellschaft m.b.H. | Graz | 62.5 | 25.0
HBM Immobilien Kamp GmbH | Wien | 100.0 | 100.0
Holding Card Service s.r.o. | Praha | 100.0 | 100.0
HP Immobilien Psi GmbH | Wien | 100.0 | 100.0
HT Immobilien Tau GmbH | Wien | 100.0 | 100.0
HT Immobilien Theta GmbH | Wien | 100.0 | 100.0
HV Immobilien Hohenems GmbH | Wien | 100.0 | 100.0
IBF-Anlagenleasing 95 Gesellschaft m.b.H. | Wien | 100.0 | 100.0
IGP Industrie und Gewerbepark Wörgl Gesellschaft m.b.H. | Kufstein | 0.0 | 0.0
ILGES - Immobilien- und Leasing - Gesellschaft m.b.H. | Rohrbach | 40.0 | 40.0
Immo Smaragd GmbH | Schwaz | 0.0 | 0.0
Immobilienverwertungsgesellschaft m.b.H. | Klagenfurt | 25.0 | 25.0
Immorent - Immobilienleasing Gesellschaft m.b.H. | Wien | 100.0 | 100.0
Immorent Oktatasi Ingatlanhasznosito es Szolgaltato Kft. | Budapest | 100.0 | 100.0
IMMORENT Österreich GmbH | Wien | 100.0 | 100.0
IMMORENT RIED GmbH | Wien | 100.0 | 100.0
Immorent Singidunum d.o.o. | Belgrade | 100.0 | 100.0
IMMORENT Terinvest Ingatlanhasznosíto es Szolgaltato Korlatolt Felelössegü Tarsasag | Budapest | 100.0 | 100.0
IMMORENT-ANUBIS Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Immorent-Kappa Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-KRABA Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-LEANDER Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-PAN Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-RAMON Grundverwertungsgesellschaft m.b.H. | Wien | 62.5 | 62.5
IMMORENT-REMUS Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-RIALTO Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-RONDO Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
IMMORENT-RUBIN Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Immorent-WBV Grundverwertungsgesellschaft m.b.H. | Wien | 50.0 | 50.0
IR Beteiligungsverwaltungsgesellschaft mbH | Wien | 100.0 | 100.0
IR CEE Project Development Holding GmbH | Wien | 100.0 | 100.0
IZBOR NEKRETNINA D.O.O. ZA USLUGE | Zagreb | 69.3 | 69.3
Jura GrundverwertungsgmbH | Graz | 25.0 | 25.0
Kärntner Sparkasse Vermögensverwaltungsgesellschaft m.b.H. | Klagenfurt | 25.0 | 25.0
KEKS pay d.o.o. | Zagreb | 0.0 | 69.3
KS - Dienstleistungsgesellschaft m.b.H. | Klagenfurt | 25.0 | 25.0
KS-Beteiligungs- und Vermögens-Verwaltungsgesellschaft m.b.H. | Klagenfurt | 25.0 | 25.0
LANED a.s. | Bratislava | 100.0 | 100.0
Lassallestraße 7b Immobilienverwaltung GmbH | Wien | 100.0 | 100.0
LIEGESA Immobilienvermietung GmbH Nfg OG | Graz | 25.0 | 25.0
MCS 14 Projektentwicklung GmbH & Co KG | Wien | 100.0 | 100.0
NÖ-Sparkassen Beteiligungsgesellschaft m.b.H. | St. Pölten | 2.5 | 2.5
Oktatasi Solutions PPP Korlatolt Felelossegu Tarsasag | Budapest | 100.0 | 100.0

321

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
Ölim-Grundverwertungsgesellschaft m.b.H. | Graz | 25.0 | 25.0
OM Objektmanagement GmbH | Wien | 100.0 | 100.0
Österreichische Sparkassenakademie GmbH | Wien | 43.8 | 43.8
Österreichisches Volkswohnungswerk, Gemeinnützige Gesellschaft mit beschränkter Haftung | Wien | 100.0 | 100.0
ÖVW Bauträger GmbH | Wien | 100.0 | 100.0
Pacemaker Lab GmbH | Wien | 0.0 | 100.0
Procurement Services CZ s.r.o. | Praha | 99.9 | 99.9
Procurement Services GmbH | Wien | 99.9 | 99.9
Procurement Services HR d.o.o. | Zagreb | 99.9 | 99.9
Procurement Services HU Kft. | Budapest | 99.9 | 99.9
Procurement Services RO srl | Bucharest | 99.9 | 99.9
Procurement Services SK, s.r.o. | Bratislava | 99.9 | 99.9
QBC Management und Beteiligungen GmbH in Liqu. | Wien | 65.0 | 65.0
Real-Service für oberösterreichische Sparkassen Realitätenvermittlungsgesellschaft m.b.H. | Linz | 56.1 | 54.9
Real-Service für steirische Sparkassen, Realitätenvermittlungsgesellschaft m.b.H. | Graz | 61.7 | 61.7
s IM Immobilien Management GmbH | Graz | 25.0 | 25.0
S IMMORENT OMIKRON drustvo s ogranicenom odgovornoscu za poslovanje nekretninama | Zagreb | 100.0 | 100.0
s REAL Immobilienvermittlung GmbH | Wien | 100.0 | 100.0
s ServiceCenter GmbH | Wien | 55.2 | 55.2
s Wohnbauträger GmbH | Wien | 100.0 | 100.0
S-Invest Beteiligungsgesellschaft m.b.H. | Wien | 70.0 | 70.0
SK - Immobiliengesellschaft m.b.H. | Krems | 0.0 | 0.0
SK Immobilien Epsilon GmbH | Wien | 100.0 | 100.0
SKT Immobilien GmbH | Kufstein | 0.0 | 0.0
SKT Immobilien GmbH & Co KG | Kufstein | 0.0 | 0.0
SLSP Seed Starter, s.r.o. | Bratislava | 100.0 | 100.0
SLSP Social Finance, s.r.o. | Bratislava | 79.8 | 79.8
sMS Marktservice für Sparkassen GmbH | Krems | 0.0 | 0.0
Sparfinanz-, Vermögens-, Verwaltungs- und Beratungs- Gesellschaft m.b.H. | Wiener Neustadt | 0.0 | 0.0
Sparkasse Mühlviertel-West Holding GmbH | Rohrbach | 40.0 | 40.0
Sparkassen IT Holding AG | Wien | 27.5 | 27.5
Sparkassen Leasing Süd GmbH | Graz | 25.0 | 25.0
Sparkassen Real Vorarlberg Immobilienvermittlung GmbH | Dornbirn | 50.0 | 50.0
Sparkassen-Haftungs GmbH | Wien | 63.1 | 63.1
Sparkassen-Real-Service für Kärnten und Osttirol Realitätenvermittlungs-Gesellschaft m.b.H. | Klagenfurt | 57.6 | 57.6
Sparkassen-Real-Service -Tirol Realitätenvermittlungs-Gesellschaft m.b.H. | Innsbruck | 68.7 | 68.7
SPK OÖ Beteiligungsholding GmbH | Linz | 10.0 | 10.0
SPK OÖ Immobilien GmbH | Linz | 10.0 | 10.0
SPK OÖ R6-8 Immobilien GmbH & Co KG | Linz | 10.0 | 10.0
S-Real, Realitätenvermittlungs- und -verwaltungs Gesellschaft m.b.H. | Wiener Neustadt | 0.0 | 0.0
S-RENT DOO BEOGRAD | Belgrade | 35.5 | 35.5
Steiermärkische Verwaltungssparkasse Immobilien & Co KG | Graz | 25.0 | 25.0
Subholding Immorent GmbH | Wien | 100.0 | 100.0
Suport Colect SRL | Bucharest | 99.9 | 99.9
UBG-Unternehmensbeteiligungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Vorarlberger Sparkassen Beteiligungs GmbH | Dornbirn | 0.0 | 0.0
XENIA-Immorent Grundverwertungsgesellschaft m.b.H. | Wien | 100.0 | 100.0
ZWETTLER LEASING Gesellschaft m.b.H. | Zwettl | 0.0 | 0.0
Funds |  |  |
ERSTE RESERVE CORPORATE | Wien | 0.0 | 0.0
ERSTE RESPONSIBLE RESERVE | Wien | 0.0 | 0.0
IPS Fonds II | Wien | 0.0 | 0.0
SPARKASSEN 4 | Wien | 0.0 | 0.0
SPARKASSEN 5 | Wien | 0.0 | 0.0
SPARKASSEN 8 | Wien | 0.0 | 0.0
Equity method investments |  |  |
Credit institutions |  |  |
Prva stavebna sporitelna, a.s. | Bratislava | 35.0 | 35.0
SPAR-FINANZ BANK AG | Salzburg | 50.0 | 50.0
Financial institutions |  |  |
BCR Social Finance IFN S.A. | Bucharest | 73.9 | 73.9
ERSTE d.o.o. | Zagreb | 45.2 | 50.6

322

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
Erste Social Finance Holding GmbH | Wien | 49.0 | 49.0
Esquilin Grundstücksverwaltungs Gesellschaft m.b.H. | St. Pölten | 24.5 | 24.5
FORIS Grundstückvermietungs Gesellschaft m.b.H. | St. Pölten | 24.5 | 24.5
Global Payments s.r.o. | Praha | 49.0 | 49.0
HOSPES-Grundstückverwaltungs Gesellschaft m.b.H. | St. Pölten | 33.3 | 33.3
Immorent-Hypo-Rent Grundverwertungsgesellschaft m.b.H. | Innsbruck | 49.0 | 49.0
LITUS Grundstückvermietungs Gesellschaft m.b.H. | St. Pölten | 24.5 | 24.5
NÖ Bürgschaften und Beteiligungen GmbH | Wien | 14.4 | 14.4
NÖ-KL Kommunalgebäudeleasing Gesellschaft m.b.H. | Wien | 33.4 | 33.4
PSA Payment Services Austria GmbH | Wien | 18.5 | 18.5
Quirinal Grundstücksverwaltungs Gesellschaft m.b.H. | Wien | 33.3 | 33.3
TKL VIII Grundverwertungsgesellschaft m.b.H. | Innsbruck | 24.5 | 24.5
VALET-Grundstückverwaltungs Gesellschaft m.b.H. | St. Pölten | 24.5 | 24.5
VOLUNTAS Grundstückvermietungs Gesellschaft m.b.H. | St. Pölten | 35.0 | 35.0
Other |  |  |
APHRODITE Bauträger GmbH | Wien | 50.0 | 50.0
Gemdat Niederösterreichische Gemeinde-Datenservice Gesellschaft m. b. H. | Korneuburg | 0.8 | 0.8
Hochkönig Bergbahnen GmbH | Mühlbach | 49.2 | 49.2
Neue Eisenstädter gemeinnützige Bau-, Wohn- und Siedlungsgesellschaft m.b.H. | Eisenstadt | 50.0 | 50.0
O.Ö. Kommunalgebäude-Leasing Gesellschaft m.b.H. | Linz | 40.0 | 40.0
Steirische Gemeindegebäude Leasing Gesellschaft m.b.H. | Wien | 50.0 | 50.0
Steirische Leasing für öffentliche Bauten Gesellschaft m.b.H. in Liqu. | Wien | 50.0 | 50.0
Steirische Kommunalgebäudeleasing Gesellschaft m.b.H. | Wien | 50.0 | 50.0
Steirische Leasing für Gebietskörperschaften Gesellschaft m.b.H. | Wien | 50.0 | 50.0
STUWO Gemeinnützige Studentenwohnbau Aktiengesellschaft | Wien | 50.0 | 50.0
SWO Kommunalgebäudeleasing Gesellschaft m.b.H. | Wien | 50.0 | 50.0
TRABITUS Grundstückvermietungs Gesellschaft m.b.H. in Liqu. | Wien | 25.0 | 25.0
"Wohnungseigentümer" Gemeinnützige Wohnbaugesellschaft m.b.H. | Mödling | 20.3 | 20.3
Slovak Banking Credit Bureau, s.r.o. | Bratislava | 33.3 | 33.3
VBV - Betriebliche Altersvorsorge AG | Wien | 29.3 | 29.3
Flottenmanagement GmbH | Wien | 51.0 | 51.0
GELUP GmbH | Wien | 33.3 | 33.3
KWC Campus Errichtungsgesellschaft m.b.H. | Klagenfurt | 13.6 | 13.6
Erste ÖSW Wohnbauträger GmbH | Wien | 50.1 | 50.1
CIT ONE SA | Bucharest | 33.3 | 33.3
Dostupny Domov j.s.a. | Nitra | 39.9 | 39.9
Monilogi s.r.o. | Bratislava | 28.0 | 28.0
Dostupny Najom j.s.a. | Nitra | 39.8 | 39.8
Other investments |  |  |
Credit institutions |  |  |
ALTA BANKA AD BEOGRAD | Belgrade | 0.0 | 0.0
EUROAXIS BANK AD Moskva | Moscow | 1.6 | 1.6
EUROPEAN INVESTMENT FUND | Luxembourg | 0.1 | 0.1
Oesterreichische Kontrollbank Aktiengesellschaft | Wien | 12.9 | 12.9
Public Joint-stock company commercial Bank "Center-Invest" | Rostov | 9.1 | 9.1
Südtiroler Sparkasse AG | Bozen | 0.1 | 0.1
Financial institutions |  |  |
"Die Kärntner" - Förderungs- und Beteiligungsgesellschaft für die Stadt Friesach Gesellschaft m.b.H. | Friesach | 25.0 | 25.0
"Die Kärntner" - Förderungsgesellschaft für das Gurktal Gesellschaft m.b.H. | Gurk | 25.0 | 25.0
"Die Kärntner"-Förderungs- und Beteiligungsgesellschaft für den Bezirk Wolfsberg Gesellschaft m.b.H. | Wolfsberg | 25.0 | 25.0
AMC V SCA SICAV-RAIF | Luxembourg | 2.9 | 2.9
Anlegerentschädigung von Wertpapierfirmen GmbH | Wien | 0.0 | 0.5
ASEF S.C.Sp. | Senningerberg | 5.3 | 5.3
BCR Asigurari de Viata Vienna Insurance Group SA | Bucharest | 5.5 | 5.5
BCR SEED STARTER SRL | Bucharest | 99.9 | 99.9
Burza cennych papierov v Bratislave, a.s. | Bratislava | 3.9 | 3.9
capital300 EuVECA GmbH & Co KG | Wien | 0.7 | 0.7
Centar banka d.d. in bankruptcy | Zagreb | 0.6 | 0.6
Central Securities Depository AD Skopje | Skopje | 4.6 | 4.6
Clearing House KIBS AD Skopje | Skopje | 4.5 | 4.5
Crowdberry Investment Platform j.s.a. | Bratislava | 20.0 | 20.0

323

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
CULINA Grundstückvermietungs Gesellschaft m.b.H. | St. Pölten | 25.0 | 25.0
CVI Private Debt Fund II S.C.A. SICAV-RAIF | Luxembourg | 0.0 | 3.3
EBA CLEARING (ABE CLEARING S.A.S.) | Paris | 2.1 | 2.1
Erste Asset Management Deutschland GmbH | Haar | 91.1 | 91.1
ERSTE Immobilien Beta GmbH | Wien | 68.7 | 68.7
Fortenova Group STAK Stichting | Amsterdam | 0.3 | 0.3
Fund of Excellence Förderungs GmbH | Wien | 45.0 | 45.0
Garantiqa Hitelgarancia Zrt. | Budapest | 2.3 | 2.3
Gladiator Leasing Limited | Pieta | 100.0 | 100.0
Innova/7 SCA SICAV-RAIF | Senningerberg | 2.9 | 2.9
KERES-Immorent Immobilienleasing GmbH | Wien | 25.0 | 25.0
KOOPERATIVA poistovna, a.s. Vienna Insurance Group | Bratislava | 1.5 | 1.5
Kooperativa pojistovna, a.s. Vienna Insurance Group | Praha | 1.6 | 1.6
Neo Investment B.V. | Amsterdam | 0.0 | 0.0
Oberösterreichische Kreditgarantiegesellschaft m.b.H. | Linz | 2.3 | 1.5
Omniasig Vienna Insurance Group SA | Bucharest | 0.1 | 0.1
Q-ENERGY V, FCR | Madrid | 1.3 | 1.3
Round2 Capital Partners II SCSp RAIF | Howald | 5.2 | 5.2
S Servis, s.r.o. | Znojmo | 100.0 | 100.0
SOCIETATEA DE TRANSFER DE FONDURI SI DECONTARI TRANSFOND SA | Bucharest | 3.2 | 3.2
Society for Worldwide Interbank Financial Telecommunication scrl | La Hulpe | 0.3 | 0.3
Speedinvest III EuVECA GmbH & Co KG | Wien | 1.8 | 1.8
Speedinvest IV EuVECA GmbH & Co KG | Wien | 1.6 | 1.6
SREDISNJE KLIRINSKO DEPOZITARNO DRUSTVO D.D.(CENTRAL DEPOZITORY & CLEARING COMPANY Inc.) | Zagreb | 0.1 | 0.1
SVB Lambach Versicherungsmakler GmbH | Lambach | 0.0 | 0.0
Taaleri SolarWind III CEE SCSp | Luxembourg | 0.0 | 1.7
Taaleri SolarWind III SCSp. | Luxembourg | 0.0 | 1.7
TKL VI Grundverwertungsgesellschaft m.b.H. | Innsbruck | 33.3 | 33.3
TKL VII Grundverwertungsgesellschaft m.b.H. | Innsbruck | 33.3 | 33.3
UNION Vienna Insurance Group Biztosito Zrt. | Budapest | 1.4 | 1.4
WB & VC Sparkasse Korneuburg GmbH | Korneuburg | 0.0 | 0.0
Web Value GmbH | Wien | 6.5 | 6.5
Wiener Börse AG | Wien | 11.6 | 11.6
Wiener osiguranje Vienna Insurance Group dionicko drustvo za osiguranje | Zagreb | 1.1 | 1.1
WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group | Wien | 2.2 | 2.2
WKBG Wiener Kreditbürgschafts- und Beteiligungsbank AG (vorm.Kapital-Beteiligungs Aktiengesellschaft) | Wien | 14.4 | 14.4
WVR Immobilien GmbH | Zwettl | 0.0 | 0.0
Zweite Beteiligungsgesellschaft Reefer-Flottenfonds mbH & Co KG | Hamburg | 0.0 | 0.0
Other |  |  |
"Gasthof Löwen" Liegenschaftsverwaltung GmbH & Co., KG | Feldkirch | 0.0 | 0.0
"Photovoltaik-Gemeinschaftsanlage" der Marktgemeinde Wolfurt | Wolfurt | 0.0 | 0.0
"S-PREMIUM" Drustvo sa ogranicenom odgovornoscu za posredovanje i zastupanje u osiguranju d.o.o. Sarajevo | Sarajevo | 25.0 | 25.0
"Stolz auf Wien" Beteiligungs GmbH | Wien | 0.0 | 0.0
"TBG" Thermenzentrum Geinberg Betriebsgesellschaft m.b.H. | Geinberg | 0.4 | 0.4
"THG" Thermenzentrum Geinberg Errichtungs-GmbH | Linz | 0.4 | 0.4
AB Banka, a.s. v likvidaci | Mladá Boleslav | 4.5 | 4.5
Achenseebahn-Aktiengesellschaft in Abwicklung | Jenbach | 0.0 | 0.0
Achtundsechzigste Sachwert Rendite-Fonds Holland GmbH & Co KG | Hamburg | 0.0 | 0.0
AD SPORTSKO POSLOVNI CENTAR MILLENNIUM VRSAC | Vršac | 0.2 | 0.2
Agrargemeinschaft Kirchschlag | Kirchschlag | 0.0 | 0.0
Alpbacher Bergbahn Gesellschaft m.b.H. & Co.KG. | Alpbach | 0.0 | 0.0
Am Garnmarkt Betriebs GmbH | Götzis | 0.0 | 0.0
ARWAG Holding-Aktiengesellschaft | Wien | 19.3 | 19.3
AS LEASING Gesellschaft m.b.H. | Linz | 10.0 | 10.0
AS Support GmbH | Linz | 10.0 | 10.0
Austrian Reporting Services GmbH | Wien | 14.3 | 14.3
aws Gründerfonds Beteiligungs GmbH & Co KG | Wien | 5.1 | 5.1
Bankovni identita, a.s. | Praha | 17.0 | 17.0
Bäuerliches Blockheizkraftwerk Kautzen registrierte Genossenschaft mit beschränkter Haftung | Kautzen | 0.0 | 0.0
beeex GmbH | Pöllau | 0.0 | 0.0

324

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
Berg- und Schilift Schwaz-Pill Gesellschaft m.b.H. | Schwaz | 0.0 | 0.0
Bergbahn Aktiengesellschaft Kitzbühel | Kitzbühel | 0.0 | 0.0
Bergbahn Lofer GmbH | Lofer | 7.1 | 7.1
Bergbahnen Oetz Gesellschaft m.b.H. | Oetz | 0.0 | 0.0
Bergbahnen Westendorf Gesellschaft m.b.H. | Westendorf | 0.0 | 0.0
BGM - EB-Grundstücksbeteiligungen GmbH & Co KG | Wien | 0.0 | 0.0
Biogenrohstoffgenossenschaft Kamptal und Umgebung registrierte Genossenschaft mit beschränkter Haftung | Maiersch | 0.0 | 0.0
Biomasse Heizwerk Zürs GmbH | Zürs | 0.0 | 0.0
Biroul de Credit SA | Bucharest | 19.4 | 19.4
Born Digital s.r.o. | Praha | 7.5 | 7.5
Brauerei Murau eGen | Murau | 0.7 | 0.7
Bregenz Tourismus & Stadtmarketing GmbH | Bregenz | 0.0 | 0.0
Budapesti Értéktozsde Zártköruen Muködo Részvénytársaság | Budapest | 2.3 | 2.3
Camelot Informatik und Consulting Gesellschaft m.b.H. | Wien | 4.1 | 4.1
CAMPUS 02 Fachhochschule der Wirtschaft GmbH | Graz | 1.5 | 1.5
CANCOM Banking Services GmbH | Wien | 0.3 | 0.3
Cargo-Center-Graz Betriebsgesellschaft m.b.H | Werndorf | 1.6 | 1.6
Cargo-Center-Graz Betriebsgesellschaft m.b.H. & Co KG | Werndorf | 1.6 | 1.6
CARUSO Carsharing eGen | Dornbirn | 0.0 | 0.0
Casa Romana de Compensatie Sibiu | Sibiu | 0.4 | 0.4
CBCB-Czech Banking Credit Bureau, a.s. | Praha | 20.0 | 20.0
CONATUS Grundstückvermietungs Gesellschaft m.b.H. in Liqu. | St. Pölten | 24.5 | 24.5
CRNOMEREC CENTAR D.O.O. ZA PROJEKTIRANJE GRADENJE I NADZOR | Zagreb | 0.0 | 0.0
Dachstein Tourismus AG | Gosau | 0.0 | 0.0
Dateio s.r.o. | Praha | 31.0 | 31.0
Digital factory s.r.o. | Praha | 15.0 | 15.0
Dornbirner Seilbahn AG | Dornbirn | 0.0 | 0.0
DRUSTVO ZA KONSALTING I MENADZMENT POSLOVE TRZISTE NOVCA A.D. BEOGRAD (SAVSKI VENAC) | Belgrade | 0.8 | 0.8
EBB-Delta Holding GmbH | Wien | 100.0 | 100.0
EBV-Leasing Gesellschaft m.b.H. | Wien | 51.0 | 51.0
EC Energie Center Lipizzanerheimat GmbH | Bärnbach | 0.0 | 0.0
Egg Investment GmbH | Egg | 0.0 | 0.0
E-H Liegenschaftsverwaltungs-GmbH | Etsdorf | 0.0 | 0.0
EHKS74 Projektentwicklung GmbH & Co KG | Korneuburg | 0.0 | 0.0
Einlagensicherung AUSTRIA Ges.m.b.H. | Wien | 1.8 | 1.8
EKS74 GmbH | Korneuburg | 0.0 | 0.0
ELAG Immobilien AG | Linz | 0.4 | 0.4
encall s.r.o. | Praha | 10.0 | 10.0
Energie AG Oberösterreich | Linz | 0.1 | 0.1
Energiegemeinschaft Kamptal eGen | Langenlois | 0.0 | 0.0
Erste Diversified Private Equity I | Senningerberg | 0.0 | 0.0
ERSTE Immobilien Alpha "WE-Objekte" GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Alpha APS 85 GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Alpha Baufeld Omega GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Alpha Brünner Straße 124 Liegenschaftsverwaltung GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Alpha Favoritenstraße 92 GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Alpha GmbH | Wien | 68.7 | 68.7
ERSTE Immobilien Alpha Hirschstettner Straße 61 GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Alpha Kerensstraße GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Alpha Paragonstraße GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Alpha W175 GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Aspernbrückengasse 2 GmbH & Co KG | Wien | 0.1 | 0.1
ERSTE Immobilien Beta GS 131 GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Gamma Breitenfurter Straße 235 GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Gamma GmbH | Wien | 68.7 | 68.7
ERSTE Immobilien Gamma Hilde-Spiel-Gasse GmbH & Co KG | Wien | 0.0 | 0.0
ERSTE Immobilien Gamma Poststraße 1 GmbH & Co KG | Wien | 0.0 | 0.0
Erste PEWO Immobilienverwaltung GmbH | Wien | 96.9 | 96.9
Erste Private Capital S.a r.l. | Senningerberg | 91.1 | 91.1
Erste Private Capital S.C.A. SICAV-RAIF | Senningerberg | 0.0 | 0.0
FLiP GmbH - gemeinnützige Gesellschaft zur Förderung finanzieller Bildung | Wien | 49.0 | 49.0

325

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
FLiP Linz GmbH - Gemeinnützige Gesellschaft zur Förderung finanzieller Bildung | Linz | 10.0 | 10.0
Flourish d.o.o Podgorica | Podgorica | 3.5 | 3.5
Förstergasse 7 Immobilien GmbH | Zwettl | 0.0 | 0.0
Fortenova STAK Stichting | Amsterdam | 0.2 | 0.2
Freizeitpark Zell GmbH | Zell | 0.0 | 0.0
Freizeitzentrum Zillertal GmbH | Fügen | 0.0 | 0.0
FWG-Fernwärmeversorgung Raabs a.d. Thaya registrierte Genossenschaft mit beschränkter Haftung | Raabs | 0.0 | 0.0
Gasteiner Bergbahnen Aktiengesellschaft | Bad Hofgastein | 13.4 | 13.4
GEBAU-NIOBAU Gemeinnützige Baugesellschaft m.b.H. | Mödling | 19.2 | 19.2
GEMDAT OÖ GmbH | Linz | 4.3 | 2.9
GEMDAT OÖ GmbH & Co KG | Linz | 4.7 | 3.2
Gemeinnützige Bau- und Siedlungsgenossenschaft "Waldviertel" registrierte Genossenschaft mit beschränkter Haftung | Raabs | 0.0 | 0.0
Gemeinnützige Wohn- und Siedlungsgesellschaft Schönere Zukunft, Gesellschaft m.b.H. | Wien | 15.0 | 15.0
Gemeinnützige Wohnungsgesellschaft "Austria" Aktiengesellschaft | Mödling | 20.0 | 20.0
Gerlitzen - Kanzelbahn - Touristik Gesellschaft m.b.H. & Co KG | Sattendorf | 0.0 | 0.0
Gewerbe- und Dienstleistungspark der Stadtgemeinde Bad Radkersburg KG | Bad Radkersburg | 12.5 | 12.5
Gladiator Aircraft Management Limited (in Liqui.) | Pieta | 100.0 | 100.0
GLL A319 AS LIMITED | Pieta | 100.0 | 100.0
GLL MSN 2118 DESIGNATED ACTIVITY COMPANY (in Liqui) | Dublin | 100.0 | 100.0
Golfclub Brand GmbH | Brand | 0.0 | 0.0
Golfclub Pfarrkirchen im Mühlviertel GesmbH | Pfarrkirchen | 0.2 | 0.2
Golfplatz Hohe Salve - Brixental Errichtergesellschaft m.b.H. & Co KG | Westendorf | 0.0 | 0.0
Golfresort Haugschlag GmbH & Co KG | Litschau | 0.0 | 0.0
Green Encoded GmbH | Graz | 0.0 | 0.0
Großarler Bergbahnen Gesellschaft mit beschränkter Haftung & Co. KG. | Großarl | 0.1 | 0.1
GW St. Pölten Integrative Betriebe GmbH | St. Pölten | 0.0 | 0.0
GWS Gemeinnützige Alpenländische Gesellschaft für Wohnungsbau und Siedlungswesen m.b.H. | Graz | 7.5 | 7.5
GXT Vermögensverwaltung GmbH & Co KG | Wien | 0.4 | 0.4
Harkin Limited | Dublin | 100.0 | 100.0
Haus für Senioren 1 Fischamend Errichtungsgesellschaft m.b.H. & Co KG | Wien | 0.0 | 0.0
Hauser Kaibling Seilbahn- und Liftgesellschaft m.b.H. & Co. KG. | Haus | 0.4 | 0.4
HDL Fiecht GmbH | Vomp | 0.0 | 0.0
Heiltherme Bad Waltersdorf GmbH | Bad Waltersdorf | 4.5 | 4.5
Heiltherme Bad Waltersdorf GmbH & Co KG | Bad Waltersdorf | 4.1 | 4.1
Hinterstoder-Wurzeralm Bergbahnen Aktiengesellschaft | Hinterstoder | 0.1 | 0.1
Hrvatski registar obveza po kreditima d.o.o. (HROK) | Zagreb | 7.3 | 7.3
HV-Veranstaltungsservice GmbH | St. Lorenzen | 100.0 | 100.0
I4A Baumeistergasse 65 Projekt GmbH | Zwettl | 0.0 | 0.0
IMMORENT S-Immobilienmanagement GesmbH | Wien | 100.0 | 100.0
Innovations.Raum Kufstein eGen | Kufstein | 0.0 | 0.0
Investown Technologies s.r.o. | Zlatniky- Hodkovice | 24.1 | 19.0
JAVNO SKLADISTE SLOBODNA CARINSKA ZONA NOVI SAD AD NOVI SAD | Novi Sad | 4.1 | 4.1
Juchgasse 10 Immobilien GmbH | Zwettl | 0.0 | 0.0
JUGOALAT-JAL AD NOVI SAD | Novi Sad | 5.0 | 5.0
Kaiser-Ebersdorfer Straße 8 GmbH & Co KG | Wien | 0.0 | 0.0
Kapruner Freizeitzentrum Betriebs GmbH | Kaprun | 0.0 | 0.0
Kitzbüheler Anzeiger Gesellschaft m.b.H. | Kitzbühel | 0.0 | 0.0
Kleinkraftwerke-Betriebsgesellschaft m.b.H. | Wien | 100.0 | 100.0
Kur- und Fremdenverkehrsbetriebe Bad Radkersburg Gesellschaft m.b.H. | Bad Radkersburg | 0.3 | 0.3
L & M Immobilien Invest GmbH | St. Pölten | 0.0 | 0.0
ländleticket marketing gmbh | Dornbirn | 0.0 | 0.0
Langenloiser Liegenschaftsverwaltungs-Gesellschaft m.b.H. | Langenlois | 0.0 | 0.0
LBH Liegenschafts- und Beteiligungsholding GmbH | Innsbruck | 75.0 | 75.0
Lebens.Resort & Gesundheitszentrum GmbH | Ottenschlag | 0.0 | 0.0
Lienzer-Bergbahnen-Aktiengesellschaft | Gaimberg | 0.0 | 0.0
Liezener Bezirksnachrichten Gesellschaft m.b.H. | Liezen | 1.1 | 1.1
LOCO 597 Investment GmbH | Egg | 0.0 | 0.0
Lorit Kommunalgebäudeleasing Gesellschaft m.b.H. | Wien | 26.7 | 26.7
LV Holding GmbH | Linz | 14.2 | 9.7
Macedonian Stock Exchange AD | Skopje | 4.7 | 4.7
Maissauer Amethyst GmbH | Maissau | 0.0 | 0.0

326

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
MAJEVICA HOLDING AKCIONARSKO DRUSTVO, BACKA PALANKA | Bacčka Palanka | 5.2 | 5.2
Mayer Property Alpha d.o.o. u likvidaciji | Zagreb | 100.0 | 100.0
Mayrhofner Bergbahnen Aktiengesellschaft | Mayrhofen | 0.0 | 0.0
MCG Graz e.gen. | Graz | 1.4 | 1.4
MEG Hausgemeinschaft "Bahnhofstraße 1, 4481 Asten" | Asten | 0.0 | 0.0
MIGRA Gemeinnützige Wohnungsges.m.b.H. | Wien | 19.8 | 19.8
Mittersiller Golf- und Freizeitanlagen Gesellschaft m.b.H. | Mittersill | 0.0 | 0.0
Montfort Investment GmbH | Götzis | 0.0 | 0.0
Mühlbachgasse 8 Immobilien GmbH | Langenlois | 0.0 | 0.0
MUNDO FM & S GmbH | Wien | 100.0 | 100.0
Nahwärme Frankenmarkt eGen | Frankenmarkt | 0.0 | 0.0
Neuhofner Bauträger GmbH | Neuhofen | 0.0 | 0.0
O.Ö. Kommunal-Immobilienleasing GmbH | Linz | 40.0 | 40.0
Oberösterreichische Unternehmensbeteiligungsgesellschaft m.b.H. | Linz | 2.3 | 1.5
Oberpinzgauer Fremdenverkehrsförderungs- und Bergbahnen - Aktiengesellschaft | Neukirchen | 0.0 | 0.0
Obertilliacher Bergbahnen-Gesellschaft m.b.H. | Obertilliach | 0.0 | 0.0
ÖKO-Heizkraftwerk Pöllau GmbH | Pöllau | 0.0 | 0.0
ÖKO-Heizkraftwerk Pöllau GmbH & Co KG | Pöllau | 0.0 | 0.0
OÖ HightechFonds GmbH | Linz | 3.1 | 2.1
Ortswärme Fügen GmbH | Fügen | 0.0 | 0.0
Österreichische Wertpapierdaten Service GmbH | Wien | 32.6 | 32.6
Osttiroler Wirtschaftspark GesmbH | Lienz | 0.0 | 0.0
ÖSW Wohnbauvereinigung Gemeinnützige Gesellschaft m.b.H. | Salzburg | 15.0 | 15.0
ÖWGES Gemeinnützige Wohnbaugesellschaft m.b.H. | Graz | 2.5 | 2.5
Planai - Hochwurzen - Bahnen Gesellschaft m.b.H. | Schladming | 0.7 | 0.7
Planung und Errichtung von Kleinkraftwerken GmbH | Wien | 100.0 | 100.0
POSLOVNO UDRUZENJE DAVAOCA LIZINGA "ALCS" BEOGRAD | Belgrade | 8.3 | 8.3
PREDUZECE ZA PRUZANJE CONSULTING USLUGA BANCOR CONSULTING GROUP DOO NOVI SAD | Novi Sad | 2.6 | 2.6
Profluo Mind SRL | Pucioasa | 0.0 | 6.8
Prvni certifikacni autorita, a.s. | Praha | 23.3 | 23.3
Radio Osttirol GesmbH | Lienz | 0.0 | 0.0
Rätikon-Center Errichtungs- und Betriebsgesellschaft m.b.H. | Bludenz | 0.0 | 0.0
RDS43 Immobilien GmbH | Zwettl | 0.0 | 0.0
Realitäten und Wohnungsservice Gesellschaft m.b.H. | Köflach | 4.0 | 4.0
REGIONALNA AGENCIJA ZA RAZVOJ MALIH I SREDNJIH PREDUZECA ALMA MONS D.O.O. | Novi Sad | 3.3 | 3.3
Rekenber s.r.o. | Praha | 20.0 | 20.0
Riesneralm - Bergbahnen Gesellschaft m.b.H. & Co. KG. | Irdning- Donnersbachtal | 0.0 | 0.0
Rolling Stock Lease s.r.o. | Bratislava | 3.0 | 3.0
RTG Tiefgaragenerrichtungs und -vermietungs GmbH | Graz | 25.0 | 25.0
S - Leasing und Vermögensverwaltung - Gesellschaft m.b.H. | Peuerbach | 0.0 | 0.0
S IMMOKO Leasing GesmbH | Korneuburg | 0.0 | 0.0
SALIX-Grundstückserwerbs Ges.m.b.H. | Eisenstadt | 50.0 | 50.0
SALZBURG INNENSTADT, Vereinigung zur Förderung selbständiger Unternehmer der Salzburger Innenstadt, registrierte Genossenschaft mit beschränkter Haftung in Liquidation | Salzburg | 2.0 | 2.0
S-AMC1 DOOEL Skopje | Skopje | 24.1 | 24.1
Schweighofer Gesellschaft m.b.H. & Co KG | Friedersbach | 0.0 | 0.0
S-City Center Wirtschaftsgütervermietungsgesellschaft m.b.H. | Wiener Neustadt | 0.0 | 0.0
S-COMMERZ Immobilienvermittlung GmbH | Neunkirchen | 0.0 | 0.0
SEG Sport Event GmbH | Hohenems | 0.0 | 0.0
Seniorenresidenz "Am Steinberg" GmbH | Graz | 25.0 | 25.0
S-Finanzservice Gesellschaft m.b.H. | Baden | 0.0 | 0.0
SHAPE Capital Partners GmbH | Wien | 0.0 | 22.7
SILO II Komplementärgesellschaft m.b.H. in Liqu. | Wien | 49.0 | 49.0
Silvrettaseilbahn Aktiengesellschaft | Ischgl | 0.0 | 0.0
Skilifte Unken - Heutal Gesellschaft m.b.H. & Co, KG | Unken | 0.0 | 0.0
Skilifte Unken Heutal Gesellschaft m.b.H. | Unken | 2.2 | 2.2
SmartHead Co. s.r.o. | Bratislava | 13.8 | 17.0
Smarthuts SRL | Bucharest | 0.0 | 10.0
Sparkasse Amstetten Service- und Verwaltungsgesellschaft m. b. H. | Amstetten | 0.0 | 0.0
Sparkasse Bludenz Beteiligungsgesellschaft mbH | Bludenz | 0.0 | 0.0
Sparkasse Bludenz Immobilienverwaltungsgesellschaft mbH | Bludenz | 0.0 | 0.0
Sparkasse Imst Immobilienverwaltung GmbH | Imst | 0.0 | 0.0

327

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
Sparkasse Imst Immobilienverwaltung GmbH & Co KG | Imst | 0.0 | 0.0
Sparkassen Bankbeteiligungs GmbH | Dornbirn | 0.0 | 0.0
Sparkassen Beteiligungs GmbH & Co KG | Wien | 3.0 | 3.0
Sparkassen Facility Management GmbH | Innsbruck | 75.0 | 75.0
Sparkassen Leasing Süd GmbH | Kaprun | 6.5 | 6.5
Sparkassen Leasing Süd GmbH | Hermagor | 25.0 | 25.0
SPES GmbH & Co. KG | Schlierbach | 0.0 | 0.0
SPK OÖ City Immobilien GmbH | Linz | 10.0 | 10.0
SPK OÖ Investment GmbH | Linz | 10.0 | 10.0
SPK OÖ M2 Immobilien GmbH | Linz | 10.0 | 10.0
SPKR Liegenschaftsverwertungs GmbH | Reutte | 0.0 | 0.0
SPKU Immo GmbH | Kufstein | 0.0 | 0.0
Sport- und Freizeitanlagen Gesellschaft m.b.H. | Schwanenstadt | 3.3 | 3.3
SPRON ehf. | Reykjavik | 4.9 | 4.9
Stadtgemeinde Weiz - Wirtschaftsentwicklungs KG | Weiz | 0.0 | 0.0
Stadtmarketing-Ternitz GmbH | Ternitz | 0.0 | 0.0
Sternstein Sessellift Gesellschaft m.b.H. | Bad Leonfelden | 7.2 | 7.2
Stoderzinken - Liftgesellschaft m.b.H. & Co. KG. | Gröbming | 0.4 | 0.4
SZG-Dienstleistungsgesellschaft m.b.H. | Salzburg | 100.0 | 100.0
Tannheimer Bergbahnen GmbH | Tannheim | 0.0 | 0.0
Tauern SPA World Betriebs- Gmbh & Co KG | Kaprun | 11.1 | 11.1
Tauern SPA World Betriebs-GmbH | Kaprun | 12.2 | 12.2
Tauern SPA World Errichtungs- GmbH & Co KG | Kaprun | 11.1 | 11.1
Tauern SPA World Errichtungs-GmbH | Kaprun | 12.2 | 12.2
TAUROS Capital Investment GmbH & Co KG | Wien | 40.4 | 40.4
TAUROS Capital Investment Zwei GmbH & Co KG | Wien | 48.1 | 48.1
TAUROS Capital Management GmbH | Wien | 44.6 | 44.6
TDG Techn. Dienstleistungs- und Objektservicegesellschaft m.b.H. | Wien | 100.0 | 100.0
TECH21 Bürohaus und Gewerbehof Errichtungs- und Betriebsgesellschaft mbH & Co KG | Wien | 0.1 | 0.1
Technologie- und Dienstleistungszentrum Ennstal GmbH | Reichraming | 0.0 | 0.0
TECHNOLOGIE- und GRÜNDERPARK ROSENTAL GmbH | Rosental | 0.3 | 0.3
Technologie- und Innovationszentrum Kirchdorf GmbH | Schlierbach | 0.0 | 0.0
Technologiezentrum Inneres Salzkammergut GmbH | Bad Ischl | 0.0 | 0.0
Technologiezentrum Salzkammergut GmbH | Gmunden | 0.2 | 0.2
Technologiezentrum Salzkammergut-Bezirk Vöcklabruck GmbH | Attnang- Puchheim | 0.0 | 0.0
Techno-Z Ried Technologiezentrum GmbH | Ried | 0.0 | 0.0
Therme Wien Ges.m.b.H. | Wien | 15.3 | 15.3
Therme Wien GmbH & Co KG | Wien | 15.3 | 15.3
Tiefgarage Anger, Gesellschaft m.b.H. & Co. KG. | Lech | 0.0 | 0.0
Tiroler Siedlungswerk Gemeinnützige Wohnungsaktiengesellschaft | Innsbruck | 25.8 | 25.8
TIZ Landl - Grieskirchen GmbH | Grieskirchen | 0.0 | 0.0
TKL II. Grundverwertungsgesellschaft m.b.H. | Wien | 26.7 | 26.7
Tourismus- u. Freizeitanlagen GmbH | Hinterstoder | 0.0 | 0.0
Tourismusgenossenschaft Ramsau am Dachstein eGen | Ramsau am Dachstein | 0.4 | 0.4
TravelPerk Inc. | Wilmington | 0.0 | 0.2
TSG EDV-Terminal-Service Ges.m.b.H. | Wien | 0.1 | 0.1
VERMREAL Liegenschaftserwerbs- und -betriebs GmbH | Wien | 25.6 | 25.6
Vestberry Holding, j.s.a. | Bratislava | 4.4 | 10.1
VISA INC. | San Francisco | 0.0 | 0.0
VIVEA Bad Schönau GmbH | Bad Schönau | 0.0 | 0.0
VIVIThv GmbH | St. Pölten | 19.9 | 19.9
VIVITimmo GmbH | St. Pölten | 14.9 | 14.9
Waldviertler Leasing s.r.o. | Praha | 0.0 | 0.0
Wassergenossenschaft Mayrhofen | Mayrhofen | 0.0 | 0.0
WBV Beteiligungs- und Vermögensverwaltungsgesellschaft m.b.H. | Feldkirch | 0.0 | 0.0
we - Gemeinnützige Tiroler Wohnbau GmbH | Innsbruck | 19.1 | 19.1
WEB Windenergie AG | Pfaffenschlag | 0.0 | 0.0
Weißsee-Gletscherwelt GmbH | #NV | 0.0 | 0.0
WET Wohnbaugruppe Service GmbH | Mödling | 19.9 | 19.9
wflow.com Czech Republic s.r.o. | Praha | 17.0 | 17.0
Wien 3420 Aspern Development AG | Wien | 24.5 | 24.5
WIEPA-Vermögensverwaltungsgesellschaft m.b.H. | Dornbirn | 0.0 | 0.0

328

|  | Interest of Erste Group in %
Company name, registered office |  | Dec 24 | Dec 25
Wirtschaftspark Kleinregion Fehring Errichtungs- und Betriebsgesellschaft m.b.H. | Fehring | 1.3 | 1.3
WNI Wiener Neustädter Immobilienleasing Ges.m.b.H. | Wiener Neustadt | 0.0 | 0.0
WW Wohnpark Wehlistraße GmbH | Wien | 100.0 | 100.0
Zagreb Stock Exchange, Inc. | Zagreb | 2.3 | 2.3
Zwettler Immobilien und Projekt GmbH | Zwettl | 0.0 | 0.0

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Additional information
GLOSSARY
Book value per share
Equity (attributable to owners of the parent) divided by the number of outstanding shares at the end of the period.
Cash return on equity (cash RoE)
Net profit for the period attributable to the owners of the parent less dividends for Additional Tier 1 capital (AT1), adjusted for non-
cash items such as goodwill amortisation and amortisation of customer relationship as a percentage of the average equity
attributable to the owners of the parent. The average is calculated on the basis of final quarterly values.
Cash earnings per share
Net profit for the period attributable to owners of the parent, less dividends for Additional Tier 1 capital (AT1), adjusted for non-
cash items such as goodwill impairment and amortisation of customer relationship divided by the weighted average number of
outstanding shares.
CEE (Central and Eastern Europe)
Abbreviation for the economic area Central and Eastern Europe. Includes the new EU member states of the enlargement rounds
2004 and 2007 as well as the successor states of Yugoslavia and the Soviet Union as well as Albania.
CET1
Common equity Tier 1.
CET1 ratio
Common equity Tier 1 as a percentage of the total risk (according to CRR).
CRR
Capital Requirements Regulation: one of the two legal acts containing the new Capital Requirements.
Cost/income ratio
General administrative expenses or operating expenses as a percentage of operating income.
Dividend yield
Dividend distribution of the financial year as a percentage of the year-end closing price or the most recent price of the share.
Earnings per share
Net profit for the period attributable to owners of the parent, less dividends for Additional Tier 1 capital (AT1), divided by the
weighted average number of outstanding shares.
Interest-bearing assets
Total assets less cash and cash balances, derivatives – held for trading, hedge accounting derivatives, property and equipment,
investment properties, intangible assets, current and deferred tax assets, assets held for sale and other assets.
Loan to deposit ratio
Loans and receivables to customers (net) in relation to deposits from customers
Miscellaneous assets
The total of hedge accounting derivatives, property and equipment, investment properties, investments in associates and joint
ventures associates, current and deferred tax assets, assets held for sale and other assets.
Miscellaneous liabilities
The total of other financial liabilities at fair value through profit or loss, other financial liabilities at amortised cost, hedge
accounting derivatives, changes in fair value of portfolio hedged items, provisions, current and deferred tax liabilities, liabilities
associated with assets held for sale and other liabilities.
Net interest margin
Net interest income as a percentage of average interest-bearing assets. The average is calculated on the basis of quarterly values.
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Operating expenses (general administrative expenses)
The total of personnel expenses, other administrative expenses and depreciation and amortisation.
Operating income
Total of net interest income, net fee and commission income, dividend income, net trading result, gains/losses from financial
instruments measured at fair value through profit or loss, net result from equity method investments and rental income from
investment properties & other operating leases.
Operating result
Operating income less operating expenses.
Own funds
Own funds according to CRR consist of Common equity Tier 1 (CET1), Additional Tier 1 capital (AT1) and the supplementary
capital (T2).
Price/earnings ratio
Ratio between closing price of the financial year and earnings per share of the financial year.
Non-performing exposure (NPE) collateralisation ratio
Collateral for non-performing credit risk exposure as a percentage of non-performing credit risk exposure.
Non-performing exposure (NPE) coverage ratio
Credit risk allowances for credit risk exposure (all allowances in scope of IFRS 9 and provisions for other commitments) as a
percentage of non-performing credit risk exposure.
Non-performing exposure (NPE) ratio
Non-performing credit risk exposure as a percentage of total credit risk exposure.
Non-performing loans (NPL) collateralisation ratio
Collateral for non-performing loans and advances to customers as a percentage of non-performing loans and advances to
customers.
Non-performing loans (NPL) coverage ratio
Credit risk allowances for loans and advances to customers as a percentage of non-performing loans and advances to customers.
Non-performing loans (NPL) ratio
Non-performing loans and advances to customers as a percentage of total loans and advances to customers.
Return on equity (RoE)
Net profit for the period attributable to owners of the parent, less dividends for Additional Tier 1 capital (AT1) as a percentage of
the average equity attributable to the owners of the parent. The average is calculated on the basis of final quarterly figures.
Return on equity excluding intangible assets (ROTE)
Net profit for the period attributable to owners of the parent, less dividends for Additional Tier 1 capital (AT1) as a percentage of
average equity attributable to owners of the parent and adjusted for intangible assets and AT1. The average is calculated on the
basis of quarterly final values.
Risk Appetite Statement (RAS)
The RAS is a strategic document, which concludes the maximum risk an organization is willing to take in order to reach any given
target.
Risk categories
Risk categories classify the risk exposures of Erste Group based on the internal ratings of Erste Group. There exist three risk
categories for performing risk exposures and one risk category for non-performing risk exposures.
Risk category – low risk
Typically regional customers with well-established and rather long-standing relationships with Erste Group or large,
internationally recognised customers. Very good to satisfactory financial position and low likelihood of financial difficulties relative
to the respective market in which the customers operate. Retail clients having long relationships with the bank, or clients with a
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wide product pool use. No relevant late payments currently or in the most recent 12 months. New business is generally done with
clients in this risk category.
Risk category – management attention
Vulnerable non-retail clients, which may have overdue payments or defaults in their credit history or may encounter debt
repayment difficulties in the medium term. Retail clients with possible payment problems in the past triggering early collection
reminders. These clients typically have a good recent payment history.
Risk category – substandard
The borrower is vulnerable to short term negative financial and economic developments and shows an elevated probability of
failure. In some cases, restructuring measures are possible or already in place. As a rule, such loans are managed in specialised risk
management departments.
Risk category – non-performing
One or more of the default criteria under Article 178 of the CRR are met: among others, full repayment unlikely, interest or
principal payments on a material exposure more than 90 days past due, restructuring resulting in a loss to the lender, realisation of
a loan loss, or initiation of bankruptcy proceedings. Erste Group applies the customer view for all customer segments, including
retail clients; if an obligor defaults on one deal then the customer’s performing transactions are classified as non-performing as
well. Furthermore, non-performing exposures also comprise non-performing forborne transactions even in cases where the client
has not defaulted.
Share capital
Total equity attributable to owners of the parent subscribed by the shareholders.
Tax ratio
Taxes on income as a percentage of pre-tax profit from continuing operations.
Texas ratio
Total capital according to IFRS dividends for Additional Tier 1 capital (AT1) and intangible assets plus allowances for loans and
advances to customers as a percentage of non-performing loans.
T 1 ratio
Tier 1 as a percentage of the total risk (according to CRR).
Total capital ratio
Total of own funds as a percentage of the total risk (according to CRR).
Total risk (risk-weighted assets, RWA)
Includes credit, market and operational risk (according to CRR).
Total shareholder return
Performance of an investment in Erste Group Bank AG shares within one year including all distributions, such as dividends, as a
percentage of the share price at the end of the previous year.
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ABBREVIATIONS

ABA | Austrian Banking Act
ABC | Anti-bribery and Corruption
AC | Amortised cost
AI | Artificial Intelligence
ALCO | Asset Liability Committee
ALM | Asset Liability Management
AMA | Advanced Measurement Approach
AT1 | Additional Tier 1
AuM | Assets under Management
B2BS | Beyond 2°C Scenario
BCR | Banca Comercialǎ Romȃnlǎ S.A.
CapEx | Capital Expenditures
CCMO | Chief Corporates and Markets Officer
CEE | Central and Eastern Europe
CEO | Chief Executive Officer
CFO | Chief Financial Officer
CET1 | Common Equity Tier 1
CGU | Cash-Generating Unit
CLA | Credit Loss Allowance
CMO | Collateralised Mortgage Obligation
CO 2 | Carbon Dioxide
CO 2 e | Carbon Dioxide Equivalent
CoI | Conflict of Interest
COO | Chief Operating Officer
CPO | Chief Platform Officer
CRD | Capital Requirements Directive
CRE | Commercial Real Estate
CRetO | Chief Retail Officer
CRO | Chief Risk Officer
CRP | Credit Portfolio Steering
CRR | Capital Requirements Regulation
CSAS | Česká spořitelna, a.s.
CSDDD | Corporate Sustainability Due Diligence Directive
CSRD | Corporate Sustainability Reporting Directive
CVA | Credit Value Adjustments
DBEIS | Department for Business, Energy & Industrial Strategy
Defra | Department for Environment, Food & Rural Affairs
DFR | Deposit Facility Rate
DMA | Double Materiality Assessment
DNSH | Do no significant harm
DQ | Data Quality
DTA | Deferred Tax Asset
DVA | Debit Value Adjustment
EAD | Exposure At Default
EBA | European Banking Authority
EBC | Erste Bank Croatia
EBH | Erste Bank Hungary Zrt.
EBOe | Erste Bank Oesterreich
ECB | European Central Bank
ECL | Expected Credit Loss
EIB | European Investment Bank
EIF | European Investment Fund
EIR | Effective interest rate
eop | end of period
EPC | Energy Performance Certificate
ERG | Employee Resource Group
ERM | Enterprise wide & Operational Risk Management
ESG | Environmental, Social and Governance

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ESMA | European Security and Markets Authority
ESRS | European Sustainability Reporting Standards
EVIC | Enterprise Value including Cash
FinGuar | Financial Guarantees
FINREP | Financial Reporting
FKi | Frauen-Karriere-Index; Women's Career Index
FLI | Forward Looking Information
FLiP | Erste Financial Life Park
FMA | Financial Market Authority
FTE | Full-time Equivalent
FVOCI | Fair value through other comprehensive income
FVPL | Fair value through profit or loss
FX | Foreign exchange
GAR | Green Asset Ratio
GCA | Gross Carrying Amount
GCC | Group Corporate Centre
GDM | Group Diversity Management
GDPR | General Data Protection Regulation
GHG | Greenhouse Gas
GWP | Global Warming Potentials
HC | Headcount
HFT | Held for trading
IAS | International Accounting Standards
IC | Intercompany
ICAAP | Internal Capital Adequacy Assessment Process
ICS | Internal Control System
ICT | Information and Communication Technology
IEA | International Energy Agency
IFRS | International Financial Reporting Standards
ILO | International Labour Organization
IRO | Impacts, Risks and Opportunities
KPI | Key Performance Indicator
LC | Large Corporates
LCC | Local Corporate Centre
LCR | Liquidity Coverage Ratio
LDM | Local Diversity Management
LGD | Loss Given Default
LT PD | Lifetime Probability of Default
LULUCF | Land Use, Land-Use Change and Forestry
MREL | Minimum Requirement for Own Funds and Eligible Liabilities
MS | Minimum Safeguards
MWh | Megawatt-hour
N&G | Nuclear and Gas
NACE | Nomenclature statistique des activités économiques dans la Communauté éeuropéenne
NCI | Non-controlling Interest
NECPs | National Energy and Climate Plans
NFR | Non-financial Risk
NGFS | Network for Greening the Financial System
NGO | Non-Governmental Organisation
NPE | Non-performing Exposure
NPL | Non-performing Loans
NZE | Net Zero Emissions
NZEB | Nearly Zero Energy Building
OCI | Other comprehensive income
O-SII | Other Systemic Important Institution
OTC | Over the Counter
P&L | Profit and loss
P2G | Pillar 2 Guidance
P2R | Pillar 2 Requirement
PACTA | Paris Agreement Capital Transition Assessment

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PCAF | Partnership for Carbon Accounting Financials
PD | Probability of Default
PED | Primary Energy Demand
POCI | Purchased or originated credit impaired
PSU | Performance Share Unit
RAS | Risk Appetite Statement
RCP | Representative Concentration Pathway
REF | Real Estate Financing
RMA | Risk Materiality Assessment
RRE | Residential Real Estate
RWA | Risk Weighted Assets
SBTi | Science Based Targets initiative
SC | Substantial Contribution
SDA | Sectoral Decarbonisation Approach
SFM | Sustainable Finance Methodology
SICR | Significant increase in credit risk
SLSP | Slovenská sporiteľňa
SME | Small and medium-sized Enterprises
Sparkasse Kärnten | Kärntner Sparkasse Aktiengesellschaft
Sparkasse Oberösterreich | Sparkasse Oberösterreich Bank AG
Sparkasse Steiermark | Steiermärkische Bank und Sparkassen Aktiengesellschaft
SPPI | Solely payments of principal and interest
SREP | Supervisory Review and Evaluation Process
T&D | Transmission and Distribution
T1 | Tier 1
T2 | Tier 2
TLTRO | Target Longer-Term Refinancing Operations
TMT | Technology, Media and Telecommunications
UBA | Umweltbundesamt
UGB | Unternehmensgesetzbuch; Austrian Company Code
UN | United Nations
UoP | Use of Proceeds
VAR | Value at Risk
WACI | Weighted Average Carbon Intensity
WBT | Web-based Training
WEO | World Energy Outlook
WTT | Well-to-tank

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Management Board
Peter Bosek mp, Chairman
Ingo Bleier mp, Member | Stefan Dörfler mp, Member
Alexandra Habeler-Drabek mp, Member | Maurizio Poletto mp, Member

Vienna, 25 February 2026
336
AUDITOR’S REPORT
AUDIT OPINION
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
AUDIT OPINION
Sparkassen-Prüfungsverband (Prüfungsstelle) and PwC Wirtschaftsprüfung GmbH, Vienna, – hereinafter referred to as “we” –
have audited the group consolidated financial statements of Erste Group Bank AG, Vienna, and its subsidiaries (the Group), which
comprise the consolidated balance sheet as at December 31, 2025 , the consolidated statement of income, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows
for the fiscal year then ended, and the notes to the group financial statements of Erste Group Bank AG.
In our opinion, the accompanying consolidated financial statements comply with legal requirements and give a true and fair view
of the financial position of the Group as at December 31, 2025 , and of its financial performance and cash flows for the year then
ended in accordance with the IFRS Accounting Standards (IFRSs) as adopted by the EU and the additional requirements under
Section 59a Austrian Banking Act (BWG) in conjunction with Section 64 BWG and Section 245a Austrian Company Code (UGB).
BASIS FOR OPINION
We conducted our audit in accordance with Regulation (EU) No. 537/2014 (hereinafter “EU Regulation”) and Austrian generally
accepted auditing standards. Those standards require the application of the International Standards on Auditing (ISAs). Our
responsibilities under those provisions and standards are further described in the “Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements” section of our report.
We are independent of the Group in accordance with Austrian Generally Accepted Accounting Principles, the provisions of the
Austrian Banking Act and professional requirements and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained until the date of this auditor’s report is sufficient and
appropriate to provide a basis for our opinion by this date.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the fiscal year. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have structured key audit matters as follows:
_ Description
_ Audit approach
_ Reference to related disclosures
IMPAIRMENTS OF LOANS AND ADVANCES TO CUSTOMERS (EXPECTED CREDIT LOSSES)
DESCRIPTION
Impairments of Loans and Advances represent management's best estimate of the credit losses expected with respect to the loan
portfolio at balance sheet date.
For loans and advances to customers in the amount of EUR 226.1 billion, measured at amortized cost, Erste Group Bank AG has
recognized credit loss allowances in the amount of EUR 3.9 billion as of December 31, 2025.
For the estimation of expected credit losses Erste Group Bank AG has implemented internal guidelines and specific processes. As
part of these processes to estimate expected credit losses the management relies significantly on complex criteria and judgements
subject to considerable discretion.
The models used for determining loss allowances are specific to the types of loan portfolios. These models are complex and not only
take product specific information into consideration, but also economical features as well as specific scenarios for country specific
337
future information and alternative scenarios. The uncertainty inherent in the estimation of impairments of loans and advances, in
particular the consideration of future economic conditions, are in 2025 significant due to the geopolitical and economic
developments.
Erste Group Bank AG has taken this into account by collective staging (overlays).
Details on the methodology are presented in Note 40.
Due to
_ the volume of risk provisions,
_ the complexity of models and interdependent assumptions and the resulting audit effort,
_ a high degree of uncertainty of future economic developments, which led to a high degree of auditor judgement and
_ the substantial judgement to be applied by the management in designing overlays.
we identified this area to be a key audit matter.
AUDIT APPROACH
To assess the appropriateness of impairments of loans and advances to customers, we:
_ updated our understanding of the Expected Credit Loss calculation methodology applied by Erste Group Bank AG based on
policies, documentation and interviews and assessed its compliance with the requirements of IFRS 9. We focused specifically on
adjustments to methods and processes made in order to capture the increased uncertainties of the present and future
environment in expected credit losses.
_ evaluated the control activities in credit risk management and lending business processes and tested key controls, in particular
with respect to the approval of loans, ongoing monitoring and the early warning system as well as the processes around the early
identification of default, as well as understood and evaluated the UTP assessment (unlikeness to pay assessment).
_ evaluated control activities and tested key controls in the area of rating models and collateral valuation and critically assessed the
valuation of collaterals based on risk adjusted sampling.
_ assessed model governance and validation processes and critically reviewed the information brought to the attention of the
management. We evaluated, with the support from our internal credit risk modelling experts, the results of back-testing and
model validations.
_ examined and critically assessed the appropriateness of credit risk parameters and models, taking into account possible structural
breaks in the observable data, and assessed the plausibility of expectations and estimates made on the basis of such biases, to
identify significant increases in the credit risk of individual customers or groups of customers.
_ assessed the correctness of the stage allocation for selected portfolios based on applicable policies.
_ analyzed sensitivities and impacts of IFRS 9 specific model aspects.
_ evaluated whether key components of the calculation of expected credit losses are correctly incorporated in the models by
performing walkthroughs and reviewing steering tables.
_ assessed the correctness of the expected credit loss calculation (ECL calculation) for selected portfolios.
_ evaluated the adequacy and plausibility of forward-looking information integrated into the estimates. In particular, we have
compared the underlying macro-economic forecasts with external sources of information and critically assessed the individual
weights attributed to scenarios.
_ tested, on a sample basis, whether default events have been identified in accordance with applicable policies, and evaluated
whether events occurred that significantly affect the borrower’s ability to repay loans and advances. Furthermore, we tested, on a
sample basis, the adequacy of individual loan loss allowances assessing the scenarios adopted and the estimation of expected cash
flows made.
REFERENCE TO RELATED DISCLOSURES
For further details regarding the process of determining loss allowances as well as regarding the design of the models involved, we
refer to the management’s disclosures in section significant accounting policies point c) Significant judgements, assumptions and
estimates and Note 37. Measurement of expected credit loss.
OTHER INFORMATION
Management is responsible for other information. Other information comprises any information included in the annual report, but
does not include the consolidated financial statements, the management report for the Group and the auditor’s report.
We obtained the consolidated corporate governance report in accordance with Section 267b UGB as well as the consolidated non-
financial declaration in accordance with Section 267a UGB prior to the date of this auditor`s report, all other parts of the annual
report are expected to be made available to us after that date.
338
Our opinion on the consolidated financial statements does not cover other information and we will not express any form of
assurance thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
RESPONSIBILITIES OF MANAGEMENT AND THE AUDIT COMMITTEE FOR THE CONSOLIDATED FINANCIAL
STATEMENTS
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the EU, and the additional requirements under Section 59a
BWG in conjunction with Section 64 BWG and Section 245a UGB, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The Audit Committee is responsible for overseeing the Group’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the EU Regulation and
with Austrian generally accepted auditing standards, which require the application of ISAs, will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with the EU Regulation and with Austrian generally accepted auditing standards, which require
the application of ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
_ identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risks of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
_ obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
_ evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
_ conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
_ evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and
whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
_ plan and perform the audit of the consolidated financial statements in order to obtain sufficient appropriate audit evidence
regarding the financial information of the entities or business activities within the Group as a basis for forming an audit opinion
339
on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work
performed for the purposes of the audit of the consolidated financial statements. We bear sole responsibility for our audit
opinion.
_ We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
_ We also provide the Audit Committee with a statement that we have complied with all relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
_ From the matters communicated to the Audit Committee, we determine those matters that were of most significance in the audit
of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
OTHER LEGAL AND REGULATORY REQUIREMENTS
REPORT ON THE MANAGEMENT REPORT
Pursuant to the Austrian Company Code, the management report for the Group is to be audited as to whether it is consistent with
the consolidated financial statements and as to whether the management report for the Group was prepared in accordance with the
applicable legal requirements.
Regarding the consolidated non-financial statement included in the group management report, our responsibility is to check
whether it has been prepared, to read it and to assess whether this other information shows material discrepancies with the
consolidated financial statements or with our knowledge obtained during the audit, or otherwise appears to be misrepresented.
Management is responsible for the preparation of the management report for the Group in accordance with the Austrian Company
Code and the special legal requirements.
We conducted our audit in accordance with Austrian Standards on Auditing for the audit of the management report for the Group.
OPINION
In our opinion, the management report for the Group was prepared in accordance with the applicable legal requirements, includes
accurate statement pursuant to Section 243a UGB and is consistent with the consolidated financial statements.
STATEMENT
Based on the findings during the audit of the consolidated financial statements and the obtained understanding concerning the
Group and its circumstances no material misstatements in the management report for the Group came to our attention.
ADDITIONAL INFORMATION IN ACCORDANCE WITH ARTICLE 10 OF THE EU REGULATION
Pursuant to Sections 23 and 24 Austrian Savings Bank Act (SpG), Sparkassen-Prüfungsverband (Prüfungsstelle) is the statutory
auditor of Erste Group Bank AG, Vienna. In accordance with Section 23 (3) SpG in conjunction with Sections 60 and 61 BWG, this
comprises the audit of the consolidated financial statements.
At the general meeting dated May 22, 2024 and pursuant to Section 1 (1) of the Auditing Rules for Savings Banks, Annex to Section
24 SpG, PwC Wirtschaftsprüfung GmbH, Vienna, was appointed as additional auditor for the financial year 2025 and, subsequently,
was engaged by the supervisory board. At the general meeting dated May 21, 2025 PwC Wirtschaftsprüfung GmbH, Vienna, was
appointed as additional auditor for the financial year 2026 and, subsequently, was engaged by the Supervisory Board. Since 2017
PwC Wirtschaftsprüfung GmbH, Vienna, has constantly been appointed as additional auditor.
We confirm that the audit opinion in the “Report on the Consolidated Financial Statements” section is consistent with the
additional report to the Audit Committee referred to in Article 11 of the EU Regulation.
We declare that we did not provide any prohibited non-audit services (Article 5 (1) of the EU Regulation) and that we remained
independent of the audited company in conducting the audit.
340
RESPONSIBLE ENGAGEMENT PARTNER
Responsible for the proper performance of the engagement are Mr. Herwig Hierzer, Austrian Certified Public Accountant
(Prüfungsstelle des Sparkassen-Prüfungsverbandes), Mr. Martin Ziegler, Austrian Certified Public Accountant (appointed auditor
within the meaning of Section 3 (1) of the Auditing Rules for Savings Banks), and Mr. Marius Richter, Austrian Certified Public
Accountant (PwC Wirtschaftsprüfung GmbH, Vienna).
Vienna, February 25, 2026
Sparkassen-Prüfungsverband
(Prüfungsstelle)
(Bank Auditor)
Herwig Hierzer
Austrian Certified Public Accountant
Martin Ziegler
Austrian Certified Public Accountant
PwC Wirtschaftsprüfung GmbH
Marius Richter
Austrian Certified Public Accountant
This report is a translation of the original report in German, which is solely valid. Publication and sharing with third parties of the
consolidated financial statements together with our auditor’s opinion is only allowed if the consolidated financial statements and
the management report for the Group are identical with the German audited version. This audit opinion is only applicable to the
German and complete consolidated financial statements with the management report for the Group. For deviating versions, the
provisions of Section 281 (2) UGB apply.
341
INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT ON ERSTE GROUP BANK
AG’S CONSOLIDATED SUSTAINABILITY REPORTING
We have performed an engagement to obtain limited assurance on the consolidated sustainability reporting of Erste Group Bank
AG, Vienna, for the financial year ending on 31 December 2025, contained in the Group Management Report in the section
“Sustainability Statement”.
CONCLUSION BASED ON AN AUDIT WITH LIMITED ASSURANCE
Based on our audit procedures performed and evidence obtained, nothing has come to our attention that causes us to believe that
the consolidated sustainability reporting included in the Group Management Report in the section “Sustainability Statement” is not
in accordance, in all material respects, with the requirements of Art. 29a (1) to (5), of the Directive 2013/34/EU, including
_ compliance with the European Sustainability Reporting Standards (ESRS),
_ the performance of the process to determine information to report on in accordance with the ESRS (hereafter ‘materiality
analysis process’) and its presentation in the information in chapter ‘IRO-1 - Description of the processes for determining and
evaluating material climate-related impacts, risks and opportunities’, and
_ compliance with the reporting requirements pursuant to Art. 8 of the Taxonomy Regulation (EU) 2020/852 (hereinafter ‘EU
Taxonomy Regulation’).
BASIS FOR CONCLUSION
We conducted our limited assurance engagement in accordance with the legal requirements and Austrian generally accepted
standards for other assurance engagements and additional statements. In a limited assurance engagement, the assurance
procedures are less extensive than for a reasonable assurance engagement, and therefore less assurance is obtained than in a
reasonable assurance engagement.
Our responsibilities under those provisions and standards are further described in the ‘Responsibilities of the group auditors’
section of our report.
We are independent of the group in accordance with Austrian professional requirements and Art. 22ff AP-RL, insofar as these are
applicable, and we have fulfilled our other professional responsibilities in accordance with these requirements.
Our audit firms are subject to the provisions of KSW-PRL 2022, which essentially corresponds to the requirements of ISQM 1, and
apply a comprehensive quality management system, including documented guidelines and procedures to comply with ethical
requirements, professional standards and applicable legal and regulatory requirements, where applicable.
We believe that the audit evidence we have obtained as of the date of this assurance report is sufficient and appropriate to provide a
basis for our summary assessment as of this date.
OTHER INFORMATION
Management is responsible for other information. Other information comprises any information included in the consolidated
financial statements, the Management Report for the Group, the annual report, except the sustainability statements and our
assurance report.
Our limited assurance conclusion on the consolidated sustainability statement included in in the section “Sustainability Statement“
does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our
limited assurance engagement on the consolidated sustainability statement included in the section “Sustainability Statement” it is
our responsibility to read the other information and, in doing so, to consider whether it is materially inconsistent with the
sustainability reporting included in the section “Sustainability Statement” or our knowledge obtained in the limited assurance
engagement or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT
Management is responsible for preparing the “Sustainability Statement”, including developing and implementing the materiality
analysis process in accordance with the applicable requirements and standards. This responsibility includes
_ identifying the actual and potential impacts, risks and opportunities related to sustainability aspects and assessing the materiality
of these impacts, risks and opportunities,
342
_ preparing the sustainability reporting included in the “Sustainability Statement” section of the Group Management Report in
accordance with the requirements of Article 29a (1) to (5) of Directive 2013/34/EC, including compliance with the ESRS,
_ including information in the “Sustainability Statement” in accordance with the EU Taxonomy Regulation, and
_ designing, implementing and maintaining internal controls the management considers relevant to enable the preparation of a
sustainability reporting included in the section “Sustainability Statement” of the Group Management Report; to ensure that is
free from material misstatement due to fraud or error and to enable the implementation of the materiality analysis process in
accordance with the requirements of the ESRS.
This responsibility also includes selecting and applying appropriate methods for sustainability reporting and making assumptions
and estimates for individual sustainability disclosures that are reasonable in the circumstances.
INHERENT LIMITATIONS IN THE PREPARATION OF THE “SUSTAINABILITY STATEMENT”
Reporting on sustainability aspects in accordance with the ESRS requires the use of information from the group's value chain,
which is only accessible to a limited extent. As described in the “Sustainability Statement” in the chapter “BP-2 – Disclosures in
relation to specific circumstances, time horizons and data methodology for reporting”, section “General information – Basis for
preparation”, the management must therefore use data and information from third parties and make assumptions and estimates as
part of the materiality analysis and to determine parameters that are disclosed in the “Sustainability Statement”. Such parameters
are therefore subject to considerable uncertainty.
Setting climate-related targets and defining the corresponding measures and strategies requires forward-looking parameters with a
long-term horizon. The underlying expectations, projections and estimates are subject to uncertainties, and actual developments
are likely to differ from current expectations.
When determining the methodology for implementing Delegated Regulation (EU) 2021/2178, as amended by Delegated Regulation
(EU) 2026/73, it is necessary to interpret undefined legal terms. Undefined legal terms can be interpreted in different ways, and the
legal conformity of their interpretation is therefore subject to uncertainty.
AUDITOR’S RESPONSIBILITIES FOR THE LIMITED ASSURANCE ENGAGEMENT OF THE CONSOLIDATED
SUSTAINABILITY REPORTING
Our responsibility is to plan and perform a limited assurance engagement on whether the consolidated sustainability reporting in
the “Sustainability Statement” section of the Group Management Report, including the materiality analysis process and the
reporting on the EU Taxonomy Regulation, is free from material misstatement, whether due to fraud or error, and to issue a report
containing our summary assessment. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of the sustainability
declaration.
We exercise professional judgement and maintain professional scepticism throughout the limited assurance engagement.
Our responsibilities include:
_ Performing risk assessment procedures, including obtaining an understanding of internal controls relevant to the engagement to
identify representations where material misstatements are likely to occur, whether due to fraud or error, but not for the purpose
of expressing a conclusion on the effectiveness of the group's internal controls, and
_ developing and performing audit procedures on the disclosures in the “Sustainability Statement” where material misstatements
are likely.
The risk of material misstatements resulting from fraud not being detected is higher than that of material misstatements resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
SUMMARY OF WORK PERFORMED
A limited assurance engagement involves performing procedures to obtain evidence about the sustainability reporting contained in
the “Sustainability Statement” section. The nature, timing and extent of the procedures selected depend on professional judgement,
including the identification of information in the “Sustainability Statement” that is likely to be materially misstated, whether due to
fraud or error.
In conducting our limited assurance engagement on the sustainability reporting included in the “Sustainability Statement” of the
Group Management Report, we proceed as follows:
_ We gain an understanding of the materiality analysis process, in particular by:
343
_ interviews to understand the sources of the information used by the management; and
_ reviewing internal documentation of the process; and
_ we assess, based on the evidence obtained from our audit procedures, whether the materiality analysis procedure complies with
the requirements of the ESRS and with the presentation of the process in the chapter “IRO-1 - Description of the process to
identify and assess material impacts, risks and opportunities”.
_ We assess whether all relevant information obtained through the materiality analysis process has been included in the
“Sustainability Statement”.
_ We gain an understanding of the company's procedures that are relevant to the preparation of the “Sustainability Statement”.
_ We assess whether the structure and presentation of the consolidated sustainability reporting contained in the “Sustainability
Statement” are in accordance with the ESRS.
_ We conduct interviews with relevant personnel and analytical procedures on selected information in the “Sustainability
Statement”.
_ We perform substantive procedures on samples of selected information in the “Sustainability Statement”.
_ We obtain evidence regarding the methods for developing estimates and forward-looking information described in the
“Sustainability Statement”.
_ We obtain an understanding of the process for identifying taxonomy-eligible and taxonomy-aligned economic activities and for
preparing the corresponding disclosures in the “Sustainability Statement”,
_ evaluate whether these processes, based on our understanding, are in accordance with the EU Taxonomy Regulation and the
related Delegated Regulations,
_ and test the input data and calculation logic used on a sample basis.
_ We compare selected information in the “Sustainability Statement” with information in the consolidated financial statements
and the other sections of the Group Management Report.
LIMITATION OF LIABILITY
The limited assurance engagement on the “Sustainability Statement” is a voluntary engagement. As agreed, in the event of liability,
any contributory negligence on the part of the audited Company, its legal representatives and vicarious agents must be taken into
account. As our report is prepared exclusively on behalf of and in the interests of the company, it does not form a basis for any
reliance by third parties on its content. Claims by third parties cannot therefore be derived from it.
We issue this limited assurance report on the basis of the engagement letters concluded with the Company, which are governed by
the General Terms and Conditions for the Public Accounting Professions (AAB 2018) enclosed to this report, which are also
effective with respect to third parties. Our liability for slight negligence is excluded in accordance with the AAB 2018.
Notwithstanding section 7 (2) of the AAB 2018, a maximum liability limit of EUR 12 million is agreed for our liability to the
company in the event of gross negligence.
344
RESPONSIBLE ENGAGEMENT PARTNERS
Responsible for the proper performance of the engagement are Mr. Herwig Hierzer, Austrian Certified Public Accountant
(Prüfungsstelle des Sparkassen-Prüfungsverbandes), Mr. Martin Ziegler, Austrian Certified Public Accountant (appointed auditor
within the meaning of Section 3 (1) of the Auditing Rules for Savings Banks), and Mrs. Dorotea-E. Rebmann, Austrian Certified
Public Accountant (PwC Wirtschaftsprüfung GmbH, Vienna).
Vienna, February 25, 2026
Sparkassen-Prüfungsverband
(Prüfungsstelle)
(Bank Auditor)
Herwig Hierzer
Austrian Certified Public Accountant
Martin Ziegler
Austrian Certified Public Accountant
PwC Wirtschaftsprüfung GmbH
Dorotea-E. Rebmann
Austrian Certified Public Accountant
This report is a translation of the original report in German language, which is solely valid. Publication and sharing with third
parties of the consolidated sustainability reporting included ed in the section ‘Sustainability Statement’ of the group Management
report together with our limited assurance report is only allowed if the “Sustainability Statement” is identical with the German
version which was subject to our engagement. This limited assurance report only refers toto complete German language
“Sustainability Statement”. For deviating versions, the provisions of Section 281 (2) UGB shall apply accordingly.
345
STATEMENT OF ALL MEMBERS OF THE MANAGEMENT
BOARD
We confirm that to the best of our knowledge the consolidated financial statements give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group
management report gives a true and fair view of the development and performance of the business and the position of the Group,
together with a description of the principal risks and uncertainties to which the Group is exposed.

Management Board
Peter Bosek mp, Chairman
Ingo Bleier mp, Member | Stefan Dörfler mp, Member
Alexandra Habeler-Drabek mp, Member | Maurizio Poletto mp, Member

Vienna, 25 February 2026
346
Erste Group Bank AG
Financial Statements 2025
347
Table of Contents

Balance Sheet of Erste Group Bank AG as of 31 December 2025 .................................................................................................................................. | 349
Income Statement of Erste Group Bank AG for the year ended 31 December 2025 ................................................................................................ | 351
Notes to the Financial Statement 2025 .................................................................................................................................................................................. | 352
GENERAL INFORMATION ......................................................................................................................................................................................................... | 352
NOTES ON ACCOUNTING AND MEASUREMENT METHODS ......................................................................................................................................... | 353
NOTES ON THE BALANCE SHEET AND INCOME STATEMENT ..................................................................................................................................... | 360
1.Maturity structure of loans and advances as well as liabilities to credit institutions and customers (by residual time to maturity) ............................................................................................................................................................................................................................ | 360
2.Debt securities due within one year .......................................................................................................................................................................... | 360
3.Assets and liabilities in foreign currencies ............................................................................................................................................................... | 361
4.Loans and advances as well as liabilities to affiliated companies and companies in which participating interests are held ............ | 361
5.Subordinated assets ...................................................................................................................................................................................................... | 361
6.Fiduciary business .......................................................................................................................................................................................................... | 361
7.Securities .......................................................................................................................................................................................................................... | 362
8.Trading Book .................................................................................................................................................................................................................... | 363
9.Participating interests and shares in affiliated companies .................................................................................................................................. | 363
10.Fixed assets ..................................................................................................................................................................................................................... | 365
11.Other assets ..................................................................................................................................................................................................................... | 366
12.Accrued and deferred items ........................................................................................................................................................................................ | 366
14.Securitised liabilities ...................................................................................................................................................................................................... | 367
15.Other liabilities ................................................................................................................................................................................................................. | 367
16.Provisions .......................................................................................................................................................................................................................... | 367
17.Subordinated liabilities, Tier 2 capital and additional core capital .................................................................................................................... | 368
18.Subscribed capital and reserves ................................................................................................................................................................................ | 370
19.Authorised and conditional capital as of 31 December 2025 ............................................................................................................................. | 370
20.Major Shareholders ........................................................................................................................................................................................................ | 371
21.Resolution Fund, deposit guarantee fund, IPS fund .............................................................................................................................................. | 371
22.Securitisation transaction ............................................................................................................................................................................................. | 372
23.Own funds and capital requirement ........................................................................................................................................................................... | 373
24.List of assets pledged as collateral for liabilities (acc. to section 64 [1] no. 8 Austrian Banking Act) ..................................................... | 375
25.Total volume of unsettled derivatives ....................................................................................................................................................................... | 376
26.Derivative financial instruments and fixed-asset financial instruments .......................................................................................................... | 378
27.Market value for securities in inactive markets ...................................................................................................................................................... | 381
28.Reclassification in securities positions ...................................................................................................................................................................... | 381
29.Hedging transactions ..................................................................................................................................................................................................... | 381
30.Consideration of CVA/DVA in derivative valuation ................................................................................................................................................ | 382
31.Risk provisions ................................................................................................................................................................................................................. | 382
32.Contingent liabilities ....................................................................................................................................................................................................... | 382
33.Credit risk .......................................................................................................................................................................................................................... | 383
34.Gross income – regional breakdown ......................................................................................................................................................................... | 383
35.Income from participating interests and shares in affiliated companies ......................................................................................................... | 383
36.Other operating income ................................................................................................................................................................................................ | 383
37.Personnel expenses ....................................................................................................................................................................................................... | 383
38.Other administrative expenses ................................................................................................................................................................................... | 384
39.Other operating expenses ............................................................................................................................................................................................ | 384
40.Value adjustments as well as results from purchases and sales in respect of participating interests and shares in affiliated Companies ........................................................................................................................................................................................................................ | 384
41.Taxes on profit or loss ................................................................................................................................................................................................... | 384
42.Other taxes ....................................................................................................................................................................................................................... | 385
43.Branches on a consolidated basis .............................................................................................................................................................................. | 385
44.Return on assets ............................................................................................................................................................................................................. | 385
45.Events after balance sheet date ................................................................................................................................................................................. | 386
BOARD MEMBERS AND EMPLOYEES ................................................................................................................................................................................... | 387
APPROPRIATION OF PROFIT ................................................................................................................................................................................................... | 390
MANAGEMENT BODIES OF ERSTE GROUP BANK AG IN 2025 ...................................................................................................................................... | 391

348

Management Report ..................................................................................................................................................................................................................... | 393
ECONOMIC ENVIRONMENT AND BUSINESS DEVELOPMENT ....................................................................................................................................... | 393
ANTICIPATED DEVELOPMENT AND RISKS OF BUSINESS .............................................................................................................................................. | 396
RESEARCH AND DEVELOPMENT ........................................................................................................................................................................................... | 404
REPORTING ON MATERIAL CHARACTERISTICS OF THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM WITH REGARD TO THE ACCOUNTING PROCESS .......................................................................................................................................................................................... | 405
HOLDINGS, PURCHASE AND SALE OF OWN SHARES ..................................................................................................................................................... | 407
CAPITAL, SHARE, VOTING AND CONTROL RIGHTS AND ASSOCIATED AGREEMENTS ........................................................................................ | 408
NON-FINANCIAL REPORTING ................................................................................................................................................................................................. | 411
GLOSSARY ................................................................................................................................................................................................................................... | 412
Auditor’s Report .......................................................................................................................................................................................................................... | 415
Statements of all members of the Management Board ..................................................................................................................................................... | 423

349
Balance Sheet of Erste Group Bank AG as of
31 December 2025
Assets

in EUR or in EUR thousand | Dec 25 | Dec 24
1. Cash in hand, balances with central banks | 9,824,295,463.86 | 6,932,389
2. Treasury bills and other bills eligible for refinancing with central banks | 17,901,326,096.77 | 16,142,603
a) treasury bills and similar securities | 17,901,326,096.77 | 16,142,603
b) other bills eligible for refinancing with central banks | 0.00 | 0
3. Loans and advances to credit institutions | 24,802,041,944.42 | 32,386,353
a) repayable on demand | 2,388,809,669.48 | 2,556,698
b) other loans and advances | 22,413,232,274.94 | 29,829,656
4. Loans and advances to customers | 24,254,225,795.27 | 23,652,703
5. Debt securities and other fixed-income securities | 4,446,546,740.86 | 13,997,028
a) issued by public bodies | 538,120,028.22 | 400,069
b) issued by other borrowers | 3,908,426,712.64 | 13,596,960
of which: own debt securities | 154,419,366.75 | 8,616,527
6. Shares and other variable-yield securities | 1,827,435,506.19 | 1,811,052
7. Participating interests | 205,621,137.18 | 155,622
of which: in credit institutions | 57,384,198.07 | 34,984
8. Shares in affiliated companies | 10,237,814,268.86 | 9,796,892
of which: in credit institutions | 9,584,594,033.79 | 9,210,717
9. Intangible fixed assets | 28,797,223.01 | 27,129
10. Tangible fixed assets | 167,590,513.14 | 170,827
of which: land and buildings used by the credit institution for its own business operations | 6,856,879.05 | 3,442
11. Shares in a controlling company | 0.00 | 0
of which: par value | 0.00 | 0
12. Other assets | 2,676,406,580.34 | 2,888,187
13. Subscribed capital called but not paid | 0.00 | 0
14. Prepayments and accrued income | 98,447,275.20 | 98,157
15. Deferred tax assets | 32,160,381.40 | 46,891
Total assets | 96,502,708,926.50 | 108,105,833
Off-balance sheet items |  |
1. Foreign assets | 62,781,566,166.72 | 68,913,090

Liabilities and equity

in EUR or in EUR thousand | Dec 25 | Dec 24
1. Liabilities to credit institutions | 30,517,498,206.15 | 35,552,929
a) repayable on demand | 4,719,568,632.49 | 7,501,888
b) with agreed maturity dates or periods of notice | 25,797,929,573.66 | 28,051,041
2. Liabilities to customers (non-banks) | 8,806,418,492.76 | 10,672,557
a) savings deposits | 0.00 | 0
aa) repayable on demand | 0.00 | 0
bb) with agreed maturity dates or periods of notice | 0.00 | 0
b) other liabilities | 8,806,418,492.76 | 10,672,557
aa) repayable on demand | 2,488,524,230.13 | 2,583,490
bb) with agreed maturity dates or periods of notice | 6,317,894,262.63 | 8,089,067
3. Securitised liabilities | 31,168,272,399.98 | 38,906,116
a) debt securities issued | 28,338,431,433.64 | 35,216,229
b) other securitised liabilities | 2,829,840,966.34 | 3,689,887
4. Other liabilities | 3,694,886,726.69 | 3,073,978
5. Accruals and deferred income | 177,906,243.58 | 202,264

350

in EUR or in EUR thousand | Dec 25 | Dec 24
6. Provisions | 641,821,492.98 | 549,929
a) provisions for severance payments | 0.00 | 0
b) provisions for pensions | 184,923,129.81 | 214,368
c) provisions for taxes | 228,594,249.85 | 100,909
d) other | 228,304,113.32 | 234,652
6a. Special fund for general banking risks | 0.00 | 0
7. Tier 2 capital pursuant to Part 2 Title I Chapter 4 of Regulation (EU) No 575/2013 | 4,750,357,651.37 | 4,679,784
8. Additional Tier 1 capital pursuant to Part 2 Title I Chapter 3 of Regulation (EU) No 575/2013 | 3,544,108,153.49 | 2,738,413
of which: Compulsory convertible bonds pursuant to § 26 Austrian Banking Act (BWG) | 0.00 | 0
8b Instruments without a vote pursuant to § 26a Austrian Banking Act (BWG) | 0.00 | 0
9. Subscribed capital | 821,028,768.00 | 821,029
a) Share capital | 821,028,768.00 | 821,029
b) Nominal amount own treasury shares | 0.00 | 0
10. Capital reserves | 1,666,864,890.01 | 1,666,726
a) committed | 1,666,864,890.01 | 1,666,726
b) uncommitted | 0.00 | 0
10a. Reserves for share-based payments | 7,575,288.05 | 9,890
11. Retained earnings | 9,546,509,652.44 | 7,149,053
a) statutory reserve | 1,537,900,000.00 | 1,537,900
b) reserves provided for by the articles | 0.00 | 0
c) other reserves | 7,816,570,166.40 | 5,447,939
d) other restricted reserves | 192,039,486.04 | 163,214
11a. Reserves for own shares | 0.00 | 0
12. Reserve pursuant to section 57 (5) of Austrian Banking Act (BWG) | 851,000,000.00 | 851,000
13. Net profit or loss for the year | 307,885,788.00 | 1,231,543
14. Investment grants | 575,173.00 | 623
Total Liabilities and equity | 96,502,708,926.50 | 108,105,833
Off-balance sheet items |  |
1. Contingent liabilities of which | 13,214,805,914.56 | 12,627,167
a) acceptances and endorsements | 0.00 | 0
b) guarantees and assets pledged as collateral security | 13,206,805,914.56 | 12,567,217
c) credit derivatives | 8,000,000.00 | 59,950
2. Commitments | 21,424,856,015.16 | 19,784,658
of which: commitments arising from repurchase agreements | 0.00 | 0
3. Liabilities arising out of fiduciary activities | 181,641.60 | 131
4. Own funds pursuant to Part 2 of Regulation (EU) No 575/2013 | 19,998,148,078.13 | 15,948,354
of which: Tier 2 capital pursuant to Part 2 Title I Chapter 4 of Regulation (EU) No 575/2013 | 4,045,128,438.66 | 3,843,503
5. Own funds requirements pursuant to Art 92 of Regulation (EU) No 575/2013 of which: capital required pursuant to Art 92 (1) of Regulation (EU) No 575/2013 | 39,303,765,100.17 | 40,976,387
a) Common Equity Tier 1 capital ratio | 31.74% | 22.99%
b) Tier 1 capital ratio | 40.59% | 29.54%
c) Total capital ratio | 50.88% | 38.92%
6. Foreign liabilities | 16,987,352,936.06 | 23,833,019

351
Income Statement of Erste Group Bank AG for the year
ended 31 December 2025

In EUR or EUR Thousand | Dec 25 | Dec 24
1. Interest and similar income | 6,607,370,221.80 | 8,754,553
of which: from fixed-income securities | 958,056,322.21 | 1,041,692
2. Interest and similar expenses | -6,289,602,802.95 | -8,550,198
I. NET INTEREST INCOME | 317,767,418.85 | 204,355
3. Income from securities and participating interests | 2,706,130,404.79 | 1,978,455
a) income from shares, other ownership interests and variable-yield securities | 110,784,140.60 | 88,236
b) income from participating interests | 11,596,979.02 | 10,505
c) income from shares in affiliated companies | 2,583,749,285.17 | 1,879,714
4. Commissions income | 268,830,832.04 | 234,159
5. Commissions expenses | -211,378,372.49 | -182,906
6. Net profit or loss on financial operations | -119,576,302.96 | 35,436
7. Other operating income | 140,595,245.04 | 167,132
II. OPERATING INCOME | 3,102,369,225.27 | 2,436,632
8. General administrative expenses | -685,726,055.51 | -649,147
a) staff costs | -331,654,721.98 | -325,561
aa) wages and salaries | -262,244,003.25 | -256,844
bb) expenses for statutory social security contributions and compulsory contributions related to wages and salaries | -51,482,094.02 | -50,118
cc) other social expenses | -3,117,850.71 | -2,945
dd) expenses for pensions and assistance | -9,876,236.11 | -10,976
ee) release / allocation to the provision of pensions | 0.00 | 0
ff) expenses for severance payments and contributions to severance and retirement funds | -4,934,537.89 | -4,678
b) other administrative expenses | -354,071,333.53 | -323,586
9. Value adjustments in respect of assets items 9 and 10 | -13,642,182.92 | -13,525
10. Other operating expenses | -19,943,280.21 | -31,713
III. OPERATING EXPENSES | -719,311,518.64 | -694,385
IV. OPERATING RESULT | 2,383,057,706.63 | 1,742,247
11./12. Income/expenses from value adjustments of loans and advances as well as individual provisions for liabilities and credit risks | -532,731.91 | -6,389
13./14. Income/expenses from value adjustments of transferable securities held as financial fixed assets, participating interests and shares in affiliated companies | 424,987,392.21 | 697,481
V. PROFIT ON ORDINARY ACTIVITIES | 2,807,512,366.93 | 2,433,340
15. Extraordinary income | 4,370,487.12 | 1,566
of which: withdrawals from the special fund for general banking risks | 0.00 | 0
16. Extraordinary expenses | 0.00 | 0
of which: allocation to the special fund for general banking risks | 0.00 | 0
17. Extraordinary result (sub-total of items 15 and 16) | 4,370,487.12 | 1,566
18. Tax on profit or loss | -11,963,482.46 | -2,494
19. Other taxes not reported under item 18 | -92,360,005.99 | -26,775
VI. PROFIT FOR THE YEAR AFTER TAX | 2,707,559,365.60 | 2,405,638
20. Changes in reserves | -2,399,673,577.60 | -1,177,630
of which: allocation to liability reserve pursuant to section 23 -6 of the Austrian Banking Act (BWG) | 0.00 | 0
of which: reversal of liability reserve pursuant to section 23 -6 of the Austrian Banking Act (BWG) | 0.00 | 0
VII. PROFIT FOR THE YEAR AFTER DISTRIBUTION ON CAPITAL | 307,885,788.00 | 1,228,008
21. Profit brought forward from previous year | 0.00 | 3,535
22. Profit transferred on the basis of profit transfer agreement | 0.00 | 0
VIII. PROFIT FOR THE YEAR | 307,885,788.00 | 1,231,543

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Notes to the Financial Statement 2025
GENERAL INFORMATION
Erste Group Bank AG is listed on the Vienna Stock Exchange. It is also quoted on the Prague Stock Exchange and on the Bucharest
Stock Exchange. Erste Group Bank AG is registered in the company register at the Commercial Court of Vienna under FN 33209m.
The address of its registered office is: Am Belvedere 1, 1100 Vienna, Austria.
The 2025 financial statements of Erste Group Bank AG have been prepared in accordance with the regulations of the Commercial
Code (Unternehmensgesetzbuch, UGB) and in conjunction with the applicable provisions of the Austrian Banking Act
(Bankwesengesetz, BWG).
Pursuant to section 59a Austrian Banking Act (BWG), Erste Group Bank AG has prepared the consolidated financial statements in
accordance with International Financial Reporting Standards (IFRS) on the same balance sheet date. The Erste Group consolidated
financial statements have been filed with the commercial register at the Commercial Court of Vienna.
Erste Group Bank AG forms together with the Austrian savings banks a cross-guarantee scheme (Haftungsverbund) in accordance
with article 4 (1) Z 127 CRR as well as an institutional protection scheme (IPS) approved by the supervisory authority pursuant to
article 113 (7) CRR, whereby the contributions of the members, in case of the triggered event, are subject to an individual and
general cap. The applicable amounts are determined by the cross-guarantee steering company that notifies the contributing
members.
According to the regulations on the cross-guarantee scheme, the joint fulfilment of liabilities to customers (this applies to all
deposits pursuant to section 1 (1) no. 1 BWG, all monetary claims based on credit balances from banking transactions, all monetary
claims from the issue of securities, excluding own funds items pursuant to article 26ff, 51ff, 62ff CRR and claims from transactions
relevant under criminal law) depends on the respective capitalization of the individual cross-guarantee scheme members. For new
liabilities to customers, this provision was lifted from September 1, 2024; liabilities until August 30, 2024 are phasing out.
The contributions of the IPS members in the IPS ex-ante fund, that is set up for support measures, are recognised in the balance
sheet as a participating interest in IPS GesbR, which manages this ex-ante fund, and are accounted for as retained earnings. Due to
the contractual terms, these retained earnings represent a blocked reserve. This reserve can be utilised only in case of a claim by ex-
ante fund and therefore cannot be used internally to cover losses. It qualifies as capital according to the CRR only on a consolidated
level, but not on the single entity level. Further explanations can be found in note 21 Resolution Fund, deposit guarantee fund, IPS
fund.
Furthermore, Erste Group Bank AG is the central institution for the associated Austrian savings banks, and together they form a
liquidity compound pursuant to section 27a Austrian Banking Act (BWG). Where necessary, Erste Group Bank AG must supply
liquidity to an associated savings bank in accordance with the legal and contractual provisions.
Ongoing legal cases
Erste Group Bank AG is party to lawsuits that mostly relate to ordinary banking business. The outcome of these proceedings is not
expected to have a significant negative impact on the financial position and profitability of Erste Group Bank AG. Erste Group
Bank AG is currently involved in the following legal case:
Lawsuit filed by minority shareholders in Česká spořitelna a.s.:
Following the completion of a squeeze-out procedure in Česká spořitelna a.s. resulting in Erste Group Bank AG becoming the sole
shareholder of Česká spořitelna a.s., some former minority shareholders of Česká spořitelna a.s. filed a lawsuit with the courts in
Prague. In these proceedings, the plaintiffs essentially claim that the settlement price per share of CZK 1,328.00 (approx. EUR 51.00
at the time) paid by Erste Group Bank AG was unfair and too low and should be increased. If the courts deem an increase to be
necessary, this decision will work in favor of all former minority shareholders. In the squeeze-out carried out in 2018, Erste Group
Bank AG acquired a total of 1.03% of minority shares with a value of EUR 80,327,547.67. Erste Group Bank AG considers the
settlement amount determined by an external valuation expert, the amount of which was confirmed by another external expert
consulted by Erste Group Bank AG in the course of the ongoing proceedings, to be correct and fair. The competent court of first
instance in Prague decided in line with the opinion of Erste Group Bank AG that it had paid a fair and correct settlement amount to
the former minority shareholders in the - not legally binding - judgment of first instance and rejected the claim for an increased
settlement amount asserted by the plaintiffs. The judgement was appealed by several plaintiffs. The appellate proceeding is still
pending.
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Disclosure
Erste Group Bank AG fulfills the publishing disclosure requirements according to Part 8 of the regulation (EU) No 575/2013 on
prudential requirements for credit institutions and investment firms (Capital Requirements Regulation – CRR) published on the
Internet. Details are available on the website of Erste Group at www.erstegroup.com/ir. The consolidated capital as well as
consolidated capital requirements are published in Erste Group’s consolidated financial statements. Further disclosures can be
found in the Erste Group annual report in the section ‘reports’ or they are published as separate documents in the section
‘regulatory disclosure’.
Large enterprise according to section 221 Commercial Code (UGB)
Pursuant to section 221 (3) Commercial Code (UGB) in connection with section 189a (1) Commercial Code (UGB), Erste Group
Bank AG is the subject to the legal regulations for large companies for the financial year ending 31 December 2025.
NOTES ON ACCOUNTING AND MEASUREMENT METHODS
Generally accepted accounting principles
The financial statements were prepared in accordance with the generally accepted accounting principles and according to the
standard principle that the financial statements should provide a fair and accurate view of the company's financial position, income
and expenses. In the preparation of the financial statements, the principle of completeness was applied. The principle of individual
measurement was applied in assessing the company’s assets and liabilities, and the assumption was that the company would
continue to operate (going concern). In applying the principle of prudence, the particularities of the banking business were
considered.
Receivables and liabilities in foreign currency
Receivables and liabilities in foreign currencies are measured at the ECB reference rates applicable at the balance sheet date. The
currencies for which ECB did not publish a reference rate were recognised at the mid-rate published by Erste Group Bank AG
applicable at the balance sheet date. Foreign exchange forward transactions and foreign exchange swaps are priced at the forward
exchange rate.
Participating interests and shares in affiliated companies
The valuation approach for participating interests and shares in affiliated companies is the modified lower of cost or market
principle.
The fair value is determined based on expert assessments of the corporate value and recent transactions or market values. In
general, the value is determined using a discounted cash-flow model (DCF model), which incorporates the specifics of the banking
business and its regulatory environment. For this purpose, Erste Group Bank AG performs an annual impairment test at the
balance sheet date, although an impairment test is also carried out during the year if evidence exists that might indicate
depreciation. Methodologically, this is carried out following International Accounting Standards (IAS) 36.
The estimation of future earnings distributable to shareholders is based on financial plans (budgets) as agreed by the management
of the subsidiaries while considering the fulfillment of the respective regulatory capital requirements. The corporate value
determination is based on different budget scenarios to reflect the uncertainty about the future macroeconomic development and
the development of the risk costs. The base scenario uses the approved budgets. The downside scenario takes a more conservative
view of the macroeconomic data. The scenarios are weighted with their expected probability of occurrence.
Any forecast beyond the planning period is derived based on the last year of the planning period and a long-term growth rate
(perpetual annuity). If the implicit return on equity is higher than the equity capital costs at the end of the planning period, the
return on equity for the perpetuities is aligned with the equity capital costs. The present value of perpetual earnings growing at a
stable rate (referred to as terminal value) takes macroeconomic parameters estimates and economically sustainable cash flows into
consideration.
The interest rate used for calculation is determined based on the CAPM (Capital Asset Pricing Model). Key input factors include:
_ A risk-free interest rate (Source: Svensson yield curve method for 30-year German government bonds)
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_ Market risk premium
_ Beta factor
_ Weighted country risk premium (Source: Damodaran).
Dividend earnings from participating interests and shares in affiliated companies are reported according to the resolution on
dividend pay-outs and shown in the profit and loss category 3 Income from securities and participating interests.
Loans and advances to credit institutions and customers
Credit loans and advances to credit institutions and customers are measured in accordance with the provisions set out in the
provision paper by the AFRAC (Austrian Financial Reporting and Auditing Committee) of 14 June 2021 using the effective interest
rate method. Default risks, which are recognised at the balance sheet date, are covered by loan loss provisions. Write-ups from the
release of loan loss provisions are carried out. Methodologically, the calculation of loan loss provisions is conducted using the IFRS
9 impairment models set out in the Commercial Code (UGB).
Securities
Securities are valued according to their classification either as trading assets, current assets, fixed assets, or receivables and similar
financial instruments (Forderungen und forderungsähnliche Finanzinstrumente (FFI)). FFI are debt instruments which are
intended to be kept until their maturity and for which the value is not potentially affected by risk and income structures that differ
significantly from the instrument’s default risks.
_ trading assets at market value, even above the acquisition cost.
_ current assets at amortised cost or at the market price if lower. If the market price cannot be determined, they are valued
according to the acquisition cost or fair value if lower. Repurchased own listed bonds (retained covered bonds) are valued at the
redemption amount.
_ securities, which are FFI, are valued at amortised cost less impairment for default risks. Only securities held as fixed assets are
FFI.
_ debt instruments held as fixed assets, that are not FFI, are written down to the lower fair value when the permanent impairment
can be presumed („ the moderated lower of cost or market principle “). Other securities held as fixed assets are valued at the
lower of amortized cost or fair value („ the strict lower of cost or market principle “). Securities in the asset class 6 are valued
according to the strict lower of cost or market principle without exception.
The allocation of securities to trading assets, current assets or fixed assets and the determination of the intention to hold them until
maturity is done in accordance with the organisational policies adopted by the Management Board. The fair value is the price that
can be achieved by selling or buying a financial instrument in an active market. Market prices are used for the assets’ valuation
where available. The valuation methods, especially the present value method, are used for assets without market prices.
Amortized cost and Effective Interest Rate Method
The amortised cost of financial assets is the amount at which the asset is measured at the initial recognition minus redemptions,
plus or minus the cumulated amortisation between the original amount and the amount redeemable at maturity using the effective
interest rate method. In the lending business, fees, and commission similar in nature to interest as well as changes in estimates are
amortised on a pro rata basis using the effective interest method.
The effective interest rate is the interest rate that discounts the estimated future cash flows over the expected life of the asset or
liability to the amortized cost. The estimated cash flows take into consideration all contract conditions. The expected credit losses,
however, are not considered. Furthermore, the calculation includes transaction costs and handling fees, if these are distributable, as
well as all other premiums or discounts.
Pursuant to section 56 (2) and (3) Austrian Banking Act (BWG) in connection with section 198 (7) Commercial Code (UGB), the
difference between acquisition cost and redemption amount for fixed-income securities with the characteristics of the financial
investments as well as for securitised liabilities is amortised on a pro rata basis. The distribution of the difference takes place in line
with AFRAC statement 14: Accounting of non-derivative financial instruments (UGB) (June 2021) according to the effective
interest rate method either until the call date, or until the redemption date.
LENDING BUSINESS
Interest-related fees and commissions, as well as changes in estimates in the lending business, are amortized on a pro rata basis
using the effective interest method.
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Should the nominal interest rate change during the life of a variable interest rate loan and this change is not due to contractual
modification, the changes to the contractual future cash flows are taken into consideration by recalculating the effective interest
rate. Any caps and floors agreed on the nominal interest rate are also considered.
If the expected contractual future cash flows of a loan change during the contract term and the change is neither due to contractual
modification nor to an adjustment to the nominal interest rate, nor to a deterioration in creditworthiness, the amortised cost of the
asset is adjusted by a changed estimate. This changed estimate corresponds to the difference between the amortised cost before the
change in the expected cash flows and the present value of the newly expected contractual cash flows discounted by the original
effective interest rate. The changed estimate is reflected in the interest income in the profit and loss statement.
Market-based adjustments to interest conditions, which fulfil specific conditions, are considered by recalculating the effective
interest rate. Such changes to the interest conditions usually concern loans, which have no forbearance status and for which there
is a prepayment option and a sufficiently competitive refinancing market. Moreover, the costs, which are incurred by the debtor in
the case of prepayment or early termination, must be low.
Handling of contractual modifications
A contractual modification occurs if a contract is modified in a way that was not specified in the contract. Contractual
modifications are mainly made in the lending business. These contractual modifications are split into significant and non-
significant modifications, depending on qualitative and quantitative aspects.
A contractual modification is significant if, following qualitative and quantitative assessment, there is a significant change which
adjusts the asset’s economic substance significantly.
A contractual modification can be classified as significant, if it leads to a borrower change, a currency conversion (if this was not
stipulated in the contract). In the case of non-defaulted loans, significant contractual adjustments include those that lead to certain
changes in the interest clause, a change in present value, or a change in the weighted remaining maturity to a certain extent.
Significant contractual modifications lead to the derecognition of the original financial asset and to the initial recognition of a new
financial asset in accordance with the contractual modifications. If the debtor has defaulted or the significant contractual
modification leads to a default, the new asset is treated as a defaulted asset. The difference between the carrying value of the
derecognised asset and the fair value of the new asset is initially recognised in profit and loss category 11 or 12.
If the debtor has not defaulted and the significant contractual modification does not lead to default, the new asset is classified in
stage 1 following the derecognition of the original asset. Stage 1 includes financial assets at initial recognition (provided they are
not already impaired at the time of acquisition) and financial assets that, regardless of their credit rating, have not shown a
significant increase in credit risk since initial recognition. The non-amortised amount of handling fees/transaction costs, which
were reflected in the effective interest rate, is booked at the time of derecognition in the interest result. The reversal of impairments,
which were recorded for the original asset until the contract has been significantly modified, as well as the booking of impairments
for the new asset are shown in profit and loss category 11 or 12. The remaining difference between the old book value following the
release of the amortized handling fees and transaction costs and the fair value of the new asset is shown in other operating income
or expenses (profit and loss category 7 or 10).
A contractual adjustment is non-significant if, following qualitative and quantitative assessment, there is no significant change and
the asset’s economic substance is only insignificantly adjusted. Non-significant contractual modifications are accounted for
according to general corporate law principles.
Impairment for credit risks
Impairments for default risks are recognised for receivables and similar financial instruments. Impairments for default risks are
particularly recognised for credit claims, certain securities held as fixed assets, and off-balance sheet credit risks from financial
guarantees and certain loan commitments.
For credit claims, the book value of the asset recorded in the balance sheet corresponds to the difference between the amortised
cost and the cumulated impairment. Impairment for loan commitments and financial guarantees are reported in the balance sheet
item “Other provisions”. In the profit and loss statement, impairment losses and income are recorded in profit and loss category
11/12 or 13/14 for all assets in accordance with section 53 Austrian Banking Act (BWG).
The calculation of impairment is carried out by using the IFRS 9 model in the Commercial Code (UGB) in accordance with AFRAC
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statement 14 (June 2021). The impairment model is based on expected credit loss and considers the “statistically determined
empirical values from similar facts and circumstances” in Section 201 (2) Z 7 Commercial Code (UGB), which are also necessary for
the valuation of expected credit loss in the Commercial Code (UGB).
Expected credit loss (ECL) reflects the following:
_ an unbiased probability-weighted amount, which is determined by a series of possible scenarios,
_ the time value of money, and
_ plausible and comprehensible information about past events and current conditions, as well as prognoses about future
economic developments that are available as of the balance sheet date without unreasonable cost or effort.
THREE STAGE MODEL
An impairment model based upon a three-stage approach is used for the calculation of the risk provisions:
_ Stage 1 includes financial assets at initial recognition (provided they are not already impaired at the time of acquisition) and
financial assets that, regardless of their credit rating, have not shown a significant increase in credit risk since initial
recognition.
_ Stage 2 includes financial assets which have shown a significant increase in credit risk since initial recognition, however for
which there is not yet any impairment at the time of report. Stage 2 also includes non-impaired assets, which credit risk could
not be assessed at the time of acquisition due to missing data in the framework of the IFRS 9 transition. There exist specific rules
for the classification of initial utilisation of the approved credit lines. Dependent on the development of credit risk between
approval and initial utilisation, the loan is classified at stage 1 or stage 2.
_ Stage 3 includes financial assets that are impaired on the reporting date. A financial asset is principally impaired if the customer
defaults.
Across the Erste Group, the definition used for loan default is based on European Banking Authority (EBA) requirements in EBA/
GL/2016/07 “Guidelines on the application of the definition of default under Article 178 of Regulation (EU) number 575/2013” and
“Commission Delegated Regulation (EU) 2018/171 of 19 October 2017 on supplementing Regulation (EU) No 575/2013 of the
European Parliament and of the Council with regard to regulatory technical standards for the materiality threshold for credit
obligations past due.” The definition lays out the rules for “default contagion” in groups of connected customers and establishes the
concept of technical overdue. When applying the definition of default, Erste Group generally takes an overall customer view, which
leads to an impairment of all receivables, even if the default occurs in only one of several transactions (pulling effect). On the other
hand, an upgrade from the default status results in the loss of the impaired creditworthiness for all risk positions.
In stage 1 risk provisions are calculated based on the expected credit losses over 12 months. In stages 2 and 3 risk provisions are
calculated based on the lifetime expected credit losses.
SIGNIFICANT INCREASE IN CREDIT RISK
Concerning the modelling of the expected credit losses (ECL) and the calculation of the risk provisions for credit risks resulting
therefrom, the identification of a significant increase in credit risk (SICR) since the recognition of the credit claim is one of the
substantial determinants for the expected impact. For this purpose, quantitative and qualitative indicators for the estimation of a
SICR are defined for all portfolios and product types, including receivables overdue by more than 30 days.
Quantitative indicators include adverse changes in the probability of default (PD) over the lifetime, whereby the significant increase
is determined by means of a combination of relative and absolute change threshold levels. Generally, the indicators for the PD are
defined to represent the risk in consideration of forward-looking information (FLI) as a point-in-time measurement. The PD
threshold levels are defined for customer segments or (individual) customer rating and are subject to continuous validation.
Qualitative indicators for calculating a SICR include forbearance measures and the transfer of the customer to the workout
department as well as early warning indicators (if these are not already sufficiently considered in the rating) and indications of
fraud. The setting of qualitative indicators is based inherently on the expert evaluation of credit risks, which is to be carried out in
an appropriate and timely manner. The group-wide and institution-specific guidelines and processes concerning this ensure the
required governance framework. Besides the qualitative determinants on a customer level, the calculation of a SICR is carried out
at portfolio level if the increase to the credit risk on a business or customer level occurs only after some delay or if the increase is
only noticeable at portfolio level. In the financial year 2024, additional approaches were used to determine the significant increase
in credit risk, as described in the “Effects of the multiple crises on economic development” section.
RISK PROVISIONS DETERMINED INDIVIDUALLY OR COLLECTIVELY
The calculation of risk provisions for defaulted customers is generally carried out on an individual level. The individual method is
used for significantly defaulted customers and comprises an individual definition of those restructuring or liquidation scenarios
deemed currently possible, their probability of occurrence, and the expected recoveries per scenario (amortisations and collateral
proceeds) by the workout risk manager. The present value is determined by discounting the expected cash flows using the original
357
effective interest rate. The required risk provision is the difference between the gross carrying amount and the present value of the
expected cash flows in a scenario, that is the probability weighted calculation of all scenarios. A customer is classified as significant
if the total receivables and off-balance sheet items are above a certain materiality threshold. Otherwise, the customer is classified as
“insignificant”, whereby a rule-based approach is applied for the calculation of the individual risk provision. Statistically calculated
risk parameters are used for the expected loss calculation of a customer classed as “insignificant”, depending on the length of
recovery and the status of the restructuring and workout process, the potential restructuring and settlement scenarios, their
probability of occurrence, and the associated expected returns.
The risk provisions are calculated by taking the gross carrying amount, minus the cash-flows discounted by the effective interest
rate per scenario, calculated over all probability weighted scenarios. The calculation of risk provisions for receivables for not
defaulted customers follows a rule-based approach. The credit risk parameters used in the calculation include the gross carrying
amount at default, the probability of default (PD), the loss given default (LGD), and the conversion factor (CCF) for off-balance
sheet items. When determining the loss given default, the result of discounting future cash flows to the present value is considered.
The risk parameters applied in the calculation of the expected credit loss consider both the information available on past events and
current conditions on the reporting date, as well as future-related information in the form of forecasts concerning future economic
developments. Depending on the characteristics of each portfolio and in consideration of the IFRS rules, the risk parameters which
are used in the calculation of the rule-based risk provisions can differ from the risk parameters used to calculate the capital
requirements.
EFFECTS OF THE MULTIPLE CRISES ON ECONOMIC DEVELOPMENT
Due to the multiple crises in recent years and the different effects on economic development, Erste Group Bank AG applied a
collective assessment of the significant increase in credit risk (stage-overlays) in the year 2025 in addition to the standard valuation
of forward-looking information. This led to a shift to Stage 2 based on predefined portfolio characteristics.
Certain industrial sectors are vulnerable to the distortions of the current environment, which has been marked by geopolitical and
macroeconomic shocks. Persistently high inflation and the reduction in disposable income continued to dampen private
consumption. At the same time, the great global uncertainty and high refinancing costs led to a negative impact on investments and
industrial activity.
While some industries proved resilient, others continued to face high inventories, ongoing supply chain issues, cost inflation and an
additional drop in demand. This development has not yet been fully reflected in the financial data of customers, which is why a
further deterioration of ratings is expected.
Moreover, the policy changes introduced by the new US administration have further increased complexity in an already
challenging global economy in a state of multiple crises.
To take into account the different developments in the industries and to ensure closer integration with internal risk management
processes, the stage-overlay for industrial sectors (industry-overlay) was retained in 2025. The rules for the industry-overlay were
defined as a combination of industries with a high risk profile (according to the industry strategy) or medium risk profile and a
hold/decrease strategy as well as a threshold of 250 basis points for one-year default probabilities according to UGB/IFRS.
Intangible and tangible assets
Intangible and tangible assets are measured at purchase or production cost less depreciation and impairment. Straight-line
depreciation is applied. The useful life is 25 to 50 years for buildings, 4 to 20 years for business and office equipment and 4 to 15
years for intangible assets. Low-value assets are fully written off in the year of acquisition.
Liabilities
Liabilities are recognized in the balance sheet at their settlement values.
Issuing costs for securities are expensed immediately; premiums and discounts on issued securities are amortised on a pro rata
basis using the effective interest rate method.
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Provisions
D EFINED BENEFIT PLAN
Defined benefit plans of Erste Group Bank AG comprise provisions for pension, severance, and jubilee benefits. In Austria, defined
pension plans now only apply to retired employees. The pension obligations for active employees were transferred to VBV-
Betriebliche Altersvorsorge AG in the previous years. Remaining with Erste Group Bank AG is a defined-benefit obligation for
entitlements of former employees who had already retired by 31 December 1998 before the pension reform took effect, and for
those former employees who did not retire until 1999 but continued to be entitled to a direct pension from Erste Group Bank AG
under individual agreements. Entitlements to resulting survivor pensions also remained with the Erste Group Bank AG. Severance
entitlements continue to be applicable for employees whose employment contract with Erste Group Bank AG commenced prior to
1 January 2003. Severance pay is a one-off payment which employees are entitled to when their employment is terminated.
Entitlement to this severance pay arises after three years of employment. Defined benefit plans include jubilee benefits. The
amount of jubilee benefits (payments for long-term service/loyalty to the company) is determined by the length of employment
with the employer. The entitlement to jubilee benefits is established by a collective agreement, which defines both the conditions
and amount of the entitlement.
Obligations under defined benefit plans for employees are determined using the projected unit credit method. Future obligations
are determined based on actuarial reports. The calculation considers not only the known salaries, pensions and entitlements to
future pension payments but also expected salary and pension increases.
The interest rate applied for the calculation of long-term personnel provisions is derived from the current interest rate of a portfolio
of high-quality (AA-rating) corporate bonds. For this purpose, the weighted average of the yield of the underlying portfolio is
determined with a corresponding duration.
TAX PROVISIONS AND OTHER PROVISIONS
Unless the amounts are small, provisions are set aside on the best estimate basis. Tax provisions and other provisions with a term of
more than a year are discounted at a market interest rate of corporate bonds with an AA rating. Depending on the applicable
remaining duration, interest rates between 0.00% and 3.71% were applied.
Assets held in trust
Separable trust assets are declared off-balance sheet in accordance with section 48 (1) Austrian Banking Act (BWG).
Derivatives transactions
Derivatives in a hedge relationship under AFRAC-statement 15 (December 2023) are treated as a valuation unit, thus the fair value
neither of the derivative nor of the hedged item is part of the balance sheet. Derivatives in the Banking Book, which are not in a
hedge relationship under AFRAC statement 15 (December 2023) are recognised based on the imparity principle in profit and loss as
provisions for contingent losses with the expected loss exceeding the book value. The interest income/expenses as well as possible
financial compensation from the current period are accrued based on the effective interest rate. These are shown in the interest
result. Any compensation payments arising from the early termination of hedging instruments related to interest‑bearing
underlying items are accounted for as a subsequent premium or discount. They are recognized as prepayments or deferred income
and amortised over time in order to adjust future interest expenses or interest income accordingly.
Derivatives in the trading book are shown in the balance sheet for each contract based on mark-to-market valuations.
The fair value is the amount which could be achieved in an active market from the sale of a financial instrument, or the amount
which would need to be paid for a purchase. If market rates were available, these were used for valuation. If market rates are not
available, valuation models, especially the net present value method, are used. Fair values for options were calculated using the
recognised option price models. Amongst others, the valuation models include the Black-Scholes model, binomial model, Hull-
White model, local volatility model and Vanna-Volga model.
Credit Value Adjustment (CVA) and Debt Value Adjustment (DVA) are used for the calculation of the fair value of derivatives.
Derivatives with the same counterparty and a netting agreement, which comply with the requirements for offsetting (central
counterparts), are netted in the balance sheet.
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Deferred tax assets
Deferred tax assets are recognised to the extent of convincing substantial evidence that sufficient taxable income will be available in
future against which tax-deductible temporary differences and tax losses can be offset. Valuation is carried out using those tax rates
(and tax laws), which are already in force on the balance sheet date or have been decided by the National Assembly and are
expected to be in force at the time of reversal of the temporary differences. The valuation methods are based on expected results for
all larger incorporated companies in the tax group.
The calculation of deferred tax assets of Erste Group Bank AG as group parent of the group of companies, which includes only
group members in Austria, is completed in accordance with AFRAC-Statement 30 “Deferred Tax Assets in single and consolidated
financial statements” (September 2023).
Securities lending and repurchase transactions
In repurchase agreements / securities lending transactions, the underlying assets continue to be recognised in the balance sheet. A
liability is presented against the pledgee in the amount received for the transfer. In reverse repurchase agreements / securities
lending transactions, the assets taken over are not part of the balance sheet. The amount owed by the pledgor is recognised as a
receivable in the amount paid for the transfer.
Investment grants
Investment grants, as defined by the law on investment grants (InvPrG), which were mainly capitalised for tangible assets, are
recognised, in accordance with the gross method, on the liabilities side of the balance sheet under investment grants and
recognised in profit and loss according to the respective useful lives of the subsidised capital assets.
Changes in accounting and measurement methods
There were no changes in accounting and measurement methods in the financial year 2025.
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NOTES ON THE BALANCE SHEET AND INCOME STATEMENT
Unless otherwise indicated, amounts for the reporting year are stated in Euros, for the previous year in thousand Euros. The tables
in this report may contain rounding differences.
1. Maturity structure of loans and advances as well as liabilities to credit institutions
and customers (by residual time to maturity)
Loans and Advances

in EUR or in EUR thousand | Dec 25 | Dec 24
Loans and advances to credit institutions | 24,802,041,944.42 | 32,386,353
payable on demand | 2,388,809,669.48 | 2,556,698
0-3 months | 10,726,169,161.22 | 15,343,436
3-12 months | 2,883,068,215.29 | 4,486,301
1-5 years | 5,318,884,652.67 | 6,138,981
>5 years | 3,485,110,245.76 | 3,860,939
Loans and advances to customers | 24,254,225,795.27 | 23,652,703
payable on demand | 1,179,735,031.67 | 601,002
0-3 months | 3,271,636,589.62 | 3,552,128
3-12 months | 1,887,605,964.69 | 1,444,463
1-5 years | 11,794,707,720.11 | 11,872,500
>5 years | 6,120,540,489.18 | 6,182,610

Liabilities

in EUR or in EUR thousand | Dec 25 | Dec 24
Liabilities to credit institutions | 30,517,498,206.15 | 35,552,929
payable on demand | 4,719,568,632.49 | 7,501,888
0-3 months | 18,440,985,850.03 | 21,733,649
3-12 months | 1,233,020,493.08 | 981,233
1-5 years | 4,009,679,517.04 | 3,732,313
>5 years | 2,114,243,713.51 | 1,603,847
Liabilities to customers (non-banks) | 8,806,418,492.76 | 10,672,557
Savings deposits | 0.00 | 0
Other Liabilities | 8,806,418,492.76 | 10,672,557
payable on demand | 2,488,524,230.13 | 2,583,490
0-3 months | 6,218,529,234.68 | 8,038,237
3-12 months | 2,898,792.01 | 23,564
1-5 years | 55,659,924.52 | 6,726
>5 years | 40,806,311.42 | 20,541

2. Debt securities due within one year
Purchased debt securities worth EUR 1,372,499,496.23 (prior year: EUR 1,097,966 thousand) and issued debt securities worth
EUR 3,245,886,088.28 (prior year: EUR 2,797,342 thousand) are scheduled to mature in the year following 31 December 2025.
361
3. Assets and liabilities in foreign currencies

in EUR or in EUR thousand | Dec 25 | Dec 24
Assets | 20,443,430,903.03 | 28,047,790
Liabilities | 10,448,368,237.82 | 12,648,687

4. Loans and advances as well as liabilities to affiliated companies and companies in
which participating interests are held

| Loans and advances to affiliated companies | Loans and advances to participating interests
in EUR or in EUR thousand | Dec 25 | Dec 24 | Dec 25 | Dec 24
Loans and advances to credit institutions | 15,921,230,911.75 | 17,531,989 | 0.00 | 0
Loans and advances to customers | 495,944,637.76 | 467,688 | 4,706,347.17 | 6,608
Debt securities and other fixed-income securities (incl. securitised loans and advances to credit institutions) | 134,900,725.97 | 299,115 | 0.00 | 0
Shares and other variable-yield securities | 1,392,630,340.16 | 1,405,610 | 0.00 | 833

| Liabilities to affiliated companies | Liabilities to participating interests
in EUR or in EUR thousand | Dec 25 | Dec 24 | Dec 25 | Dec 24
Liabilities to credit institutions | 19,586,980,634.95 | 19,925,806 | 101,886.03 | 413
Liabilities to customers (non-banks) | 1,456,736,121.39 | 2,138,679 | 602,218.15 | 1,230
Securitised liabilities | 95,160,861.06 | 147,253 | 0.00 | 0
Tier 2 capital pursuant to Part 2 Title I Chapter 4 of Regulation (EU) No 575/2013 | 1,965,035.21 | 0 | 0.00 | 0

Business with affiliated companies is conducted at arm’s length.
5. Subordinated assets

in EUR or in EUR thousand | Dec 25 | Dec 24
Loans and advances to credit institutions, thereof | 1,039,430,069.63 | 890,322
to affiliated companies | 1,034,807,799.83 | 890,322
to companies with participating interests | 0.00 | 0
Loans and advances to customers, thereof | 1,209,736.91 | 155
to affiliated companies | 0.00 | 0
to companies with participating interests | 31,393.32 | 57
Shares and other fixed-income securities, thereof | 24,856,108.19 | 14,202
to affiliated companies | 0.00 | 0
to companies with participating interests | 0.00 | 0

Repurchased bonds from own issues of Erste Group Bank AG are included within shares and other fixed-income securities with a
carrying amount including interest accruals of EUR 11,654,257.38 (previous year: EUR 13,162 thousand).
Erste Group Bank AG also holds senior non-preferred notes, which are not reported in the table. These are reported under loans
and advances to credit institutions in the amount of EUR 706,572,055.22 (prior year: EUR 454,489 thousand) and shares and other
fixed-income securities in the amount of EUR 225,878,263.05 (prior year: EUR 412,949 thousand). Within loans and advances to
credit institutions EUR 702,107,138.93 (prior year: EUR 450,447 thousand) relate to affiliated companies. Shares and within other
fixed-income securities EUR 33,351,077.23 (prior year: EUR 6,633 thousand) are attributable to affiliated companies.
6. Fiduciary business
No fiduciary business without the right of disposal was disclosed as of the balance sheet date.
362
7. Securities
In the item ‘Shares and other fixed‑income securities’, the decrease is due to the fact that own covered bonds, which were included
as of 31 December 2024 with a carrying amount of EUR 8,456,167,821.38, are not listed on any regulated market in the current
financial year 2025 and are therefore not recognized in the financial statements.
BREAKDOWN OF SECURITIES ADMITTED TO TRADING ON STOCK EXCHANGE ITEMS A5 TO A8

pursuant to section 64 (1) no. 10 Austrian Banking Act (BWG) | Listed | Not Listed
in EUR or in EUR thousand | Dec 25 | Dec 24 | Dec 25 | Dec 24
Shares and other fixed-income securities | 4,446,546,740.86 | 13,997,028 | 0.00 | 0
Shares and other variable-yield securities | 422,805,496.63 | 400,941 | 14,505,951.96 | 3,730
Participating interests | 0.00 | 0 | 0.00 | 0
Shares in affiliated companies | 0.00 | 0 | 0.00 | 0
Total | 4,869,352,237.49 | 14,397,969 | 14,505,951.96 | 3,730

BREAKDOWN OF SECURITIES ADMITTED TO TRADING ON STOCK EXCHANGE ITEMS A5 TO A6

pursuant to section 64 (1) no. 11 Austrian Banking Act (BWG) | Fixed assets | Current assets
in EUR or in EUR thousand | Dec 25 | Dec 24 | Dec 25 | Dec 24
Shares and other fixed-income securities | 2,416,938,616.64 | 4,111,304 | 9,977,719.51 | 8,473,464
Shares and other variable-yield securities | 24,312,889.27 | 19,795 | 12,497,670.59 | 10,952
Total | 2,441,251,505.91 | 4,131,099 | 22,475,390.10 | 8,484,416

Securities that are listed on a non-regulated market, for example those on the third market of the Vienna Stock Exchange, are
considered as approved for trading on the stock market, yet they are not publicly listed.
Allocation pursuant to section 64 (1) no. 11 Austrian Banking Act (BWG) was carried out in accordance with the organisational
policies adopted by the Management Board, with positions being included under fixed assets that are held for strategic purposes of
liquidity. As of 31 December 2025, the difference to the redemption value – items A2 to A6 - resulting from the pro rata write-
downs pursuant to section 56 (2) Austrian Banking Act (BWG) amounts to EUR 186,831,828.96 (prior year: EUR 200,672
thousand), whereas the difference to the redemption value from the pro rata write-ups pursuant to section 56 (3) Austrian Banking
Act (BWG) amounts to EUR 289,770,573.82 (prior year: EUR 302,016 thousand).
REPURCHASE AGREEMENTS
The carrying amount of assets subject to sale and repurchase agreements amounts to EUR 427,906,399.43 on the balance sheet date
(prior year: EUR 7,231,217 thousand).
SECURITIES LENDING TRANSACTIONS
Securities lent are reported in the corresponding securities items. The claim for repayment is held in evidence accounts. The
carrying amount of the securities lent is EUR 1,232,386,337.98 (previous year: EUR 6,189,656 thousand). In addition, securities with
a market value of EUR 245,595,517.48 (previous year: EUR 914,135 thousand) were lent, which were received as part of securities
lending or repurchase agreements and are therefore not reported in the balance sheet.
DIFFERENCES OF THE SECURITIES LISTED FOR TRADE ON THE STOCK EXCHANGE NOT HELD AS FINANCIAL
FIXED ASSETS
As in the prior year the right to book the securities at the higher market value pursuant to section 56 (5) Austrian Banking Act
(BWG) was not exercised, as in the previous year.
The difference between the higher market value on the balance sheet date and the booked cost of purchase pursuant to section 56
(4) Austrian Banking Act (BWG) amounts to EUR 370,489.15 (prior year: EUR 3,887 thousand).
363
BREAKDOWN OF DEBT SECURITIES AND OTHER FIXED-INCOME SECURITIES

in EUR or in EUR thousand | Dec 25 | Dec 24
Issued by public-sector issuers | 538,120,028.22 | 400,069
Repurchased own issues | 154,419,366.75 | 8,616,527
Bonds - domestic credit institutions | 130,575,457.15 | 265,381
Bonds - foreign credit institutions | 1,013,498,295.79 | 2,371,694
Mortgage and municipal securities | 2,346,771,347.19 | 2,006,523
Convertible bonds | 0.00 | 0
Other bonds | 263,162,245.76 | 336,835
Total position A5 | 4,446,546,740.86 | 13,997,028

8. Trading Book
Erste Group Bank AG kept a trading book in accordance with CRR Article 94 (3) b and c, with a volume of EUR 30,498,100,180.53
as of 31 December 2025 (prior year: EUR 46,410,525 thousand). The publication of the new final Regulatory Technical Standards
(RTS) by the EBA for determining the long/short classification led to an adjustment of methodology for calculating the trading
book volume.
9. Participating interests and shares in affiliated companies
The amounts for equity and result are denominated in euro and, as a rule, are, on behalf of a timely reporting, derived from the
IFRS financial statements prepared for consolidation purposes according to uniform group guidelines. The share indicated below
represents direct and indirect shares.
Holdings as of 31 December 2025

Company name, registered office | Interest of Erste Group in % | Equity | Result | Balance sheet date
Credit institutions according to the CRR |  |  |  |
Banca Comerciala Romana SA, Bucharest | 99.89 | 3,476,138,673.80 | 631,435,554.03 | 31 Dec 25
Banka Sparkasse d.d., Ljubljana | 28.00 | 198,382,832.21 | 14,989,453.95 | 31 Dec 25
Ceska sporitelna, a.s., Prague | 100.00 | 5,698,499,684.34 | 1,044,723,193.64 | 31 Dec 25
Erste & Steiermärkische Bank d.d., Rijeka | 69.26 | 1,696,257,476.60 | 229,898,939.98 | 31 Dec 25
ERSTE BANK AKCIONARSKO DRUSTVO, NOVI SAD, Novi Sad | 80.50 | 545,632,634.40 | 65,491,457.63 | 31 Dec 25
Erste Bank der oesterreichischen Sparkassen AG, Vienna | 100.00 | 2,852,362,786.59 | 561,751,228.60 | 31 Dec 25
Erste Bank Hungary Zrt, Budapest | 100.00 | 1,630,587,731.89 | 336,617,769.94 | 31 Dec 25
Prva stavebna sporitelna, a.s., Bratislava | 35.00 | 334,358,878.80 | 17,956,454.78 | 31 Dec 25
Public Joint-stock company commercial Bank "Center-Invest", Rostow on Don | 9.09 |  |  | n.a.
Slovenska sporitelna, a. s., Bratislava | 100.00 | 2,367,669,265.12 | 299,278,002.17 | 31 Dec 25
SPAR-FINANZ BANK AG, Salzburg | 50.00 | 5,591,799.04 | 156,662.06 | 31 Dec 25
Finanzinstitute |  |  |  |
EB Erste Bank Internationale Beteiligungen GmbH, Vienna | 100.00 | 26,060,613.78 | -668,925.98 | 31 Dec 25
Erste Asset Management GmbH, Vienna | 91.06 | 315,223,290.35 | 119,275,698.26 | 31 Dec 25
Erste Finance (Delaware) LLC, Wilmington | 100.00 | 0.39 | 0.19 | 31 Dec 25
Erste Group Immorent GmbH, Vienna | 100.00 | 333,154,818.34 | 15,131,969.53 | 31 Dec 25
ERSTE GROUP IMMORENT LJUBLJANA, financne storitve, d.o.o., Ljubljana | 100.00 | -219,945.75 | -67,150.63 | 31 Dec 25
EUROPEAN INVESTMENT FUND, Luxembourg | 0.07 | 4,865,811,636.00 | 279,772,600.00 | 31 Dec 24
Holding Card Service s.r.o., Prague | 100.00 | 71,696,084.57 | -9,223.82 | 31 Dec 25
Intermarket Bank AG, Vienna | 93.79 | 163,117,658.86 | 8,873,826.47 | 31 Dec 25
Other |  |  |  |
AMC V SCA SICAV-RAIF, Luxembourg | 2.86 | 154,695,726.00 | 12,596,183.00 | 31 Dec 24
ASEF S.C.Sp., Senningerberg | 5.32 | 102,434,495.00 | 20,880,168.00 | 31 Dec 24
Austrian Reporting Services GmbH, Vienna | 14.28 | 85,672.58 | 2,591.40 | 31 Dec 24

364

Company name, registered office | Interest of Erste Group in % | Equity | Result | Balance sheet date
aws Gründerfonds Beteiligungs GmbH & Co KG, Vienna | 5.11 | 23,272,393.09 | -1,349,235.89 | 31 Dec 24
Dateio s.r.o., Prague | 31.03 | 5,707,183.23 | 866,113.67 | 31 Dec 24
EBA CLEARING (ABE CLEARING S.A.S.), Paris | 2.08 | 56,868,000.00 | 4,568,000.00 | 31 Dec 24
EB-Restaurantsbetriebe Ges.m.b.H., Vienna | 100.00 | 936,399.58 | 73,635.37 | 31 Dec 25
ERSTE CAMPUS Immobilien AG & Co KG, Vienna | 100.00 | 106,661,930.38 | 10,318,589.63 | 31 Dec 25
ERSTE d.o.o., Zagreb | 50.57 | 20,606,451.40 | 3,323,640.83 | 31 Dec 25
Erste Digital GmbH, Vienna | 81.81 | 73,875,683.67 | -6,033,056.74 | 31 Dec 25
Erste Group Card Processor d.o.o., Zagreb | 100.00 | 17,384,682.02 | 2,024,795.40 | 31 Dec 25
Erste Group Services GmbH, Vienna | 100.00 | 708,194.95 | 86,054.76 | 31 Dec 25
Erste Operations GmbH, Vienna | 100.00 | 1,499,397.59 | 959,808.76 | 31 Dec 25
Erste Reinsurance S.A., Luxembourg | 100.00 | 65,043,326.49 | 3,077,082.77 | 31 Dec 25
George Labs GmbH, Vienna | 100.00 | 2,773,305.99 | 1,281,542.94 | 31 Dec 25
Graben 21 Liegenschaftsverwaltung GmbH, Vienna | 100.00 | 6,563,219.01 | 1,152,436.45 | 31 Dec 25
Haftungsverbund GmbH, Vienna | 63.09 | 728,205.52 | 646.25 | 31 Dec 25
Innova/7 SCA SICAV-RAIF, Senningerberg | 2.86 | 261,385,677.00 | 25,296,559.00 | 31 Dec 24
IPS Fonds Gesellschaft bürgerlichen Rechts, Vienna | 67.50 | 320,927,401.17 | 4,351,519.50 | 31 Dec 24
OM Objektmanagement GmbH, Vienna | 100.00 | 26,378,512.10 | 5,246,748.48 | 31 Dec 25
Österreichische Wertpapierdaten Service GmbH, Vienna | 32.56 | 342,472.03 | 14,874.41 | 31 Dec 24
Pacemaker Lab GmbH, Vienna | 100.00 | 1,324,315.54 | 1,289,315.54 | 31 Dec 25
Procurement Services GmbH, Vienna | 99.86 | 1,170,545.52 | 414,744.86 | 31 Dec 25
Q-ENERGY V, FCR, Madrid | 1.25 | 794,792,203.00 | -5,813,504.00 | 31 Dec 24
Round2 Capital Partners II SCSp RAIF, Howald | 5.16 | 85,822,816.00 | 3,948,697.00 | 31 Dec 24
Society for Worldwide Interbank Financial Telecommunication scrl, La Hulpe | 0.34 | 803,945,301.00 | 151,419,729.00 | 31 Dec 24
Speedinvest III EuVECA GmbH & Co KG, Vienna | 1.82 | 106,960,213.33 | -12,350,969.73 | 31 Dec 24
Speedinvest IV EuVECA GmbH & Co KG, Vienna | 1.61 | 103,884,928.70 | -14,166,513.26 | 31 Dec 24
Taaleri SolarWind III CEE SCSp, Luxembourg | 1.67 | 37,965,359.00 | 4,771,058.00 | 31 Dec 24
Taaleri SolarWind III SCSp., Luxembourg | 1.67 | 71,892,149.00 | 1,880,930.00 | 31 Dec 24
TAUROS Capital Investment GmbH & Co KG, Vienna | 40.43 | 4,185,990.12 | -1,272,931.20 | 31 Dec 24
TAUROS Capital Investment Zwei GmbH & Co KG, Vienna | 48.13 | 1,906,622.58 | -303,377.44 | 31 Dec 24
Therme Wien GmbH & Co KG, Vienna | 15.33 | 29,367,364.98 | 4,063,064.98 | 31 Dec 24
VBV - Betriebliche Altersvorsorge AG, Vienna | 29.32 | 384,259,820.49 | 326,841,278.65 | 31 Dec 25
Wiener Börse AG, Vienna | 11.62 | 208,981,025.79 | 46,404,319.75 | 31 Dec 24
WIENER STÄDTISCHE VERSICHERUNG AG Vienna Insurance Group, Vienna | 2.15 | 763,773,949.69 | 124,962,698.98 | 31 Dec 24

There are open payment obligations to the nominal capital amounting to EUR 4,000,000.00 EUR (prior year: EUR 4,000 thousand)
to the EUROPEAN INVESTMENT FUND, Luxembourg.
Advanced payments made for affiliated companies in amount of EUR 20,370,619.29 were capitalised for the acquisition of the
investment in Santander Bank Polska S.A.
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10. Fixed assets
Statement of changes in fixed and long-term assets 2025
AT COST

in EUR | 1 January 2025 | Additions | Disposals | Reclassification | Currency translation (+/-) | 31 December 2025
Participating interests | 251,716,730.24 | 34,629,878.37 | 3,065,831.27 | 0.00 | 0.00 | 283,280,777.34
Shares in affiliated companies | 11,361,048,319.51 | 91,267,943.17 | 17,500.00 | 0.00 | 0.00 | 11,452,298,762.68
Intangible fixed assets | 94,939,339.65 | 8,136,305.84 | 0.00 | 0.00 | 0.00 | 103,075,645.49
Tangible assets | 215,860,218.54 | 4,071,690.55 | 693,986.00 | 0.00 | 0.00 | 219,237,923.09
Securities | 21,093,100,820.65 | 5,835,483,570.81 | 5,099,126,629.37 | 0.00 | -52,528,520.54 | 21,776,929,241.55
Treasury bills and similar securities | 12,962,437,002.69 | 3,011,228,922.66 | 818,165,607.58 | 0.00 | -5,814,105.50 | 15,149,686,212.27
Loans and advances to credit institutions | 2,135,564,453.07 | 752,458,862.46 | 525,208,398.85 | -19,953,400.00 | -17,361,184.37 | 2,325,500,332.31
Loans and advances to customers | 534,343,788.34 | 1,259,536,268.16 | 1,255,148,997.60 | 0.00 | -22,629,054.41 | 516,102,004.49
Bonds and other fixed-income securities | 4,033,205,509.38 | 360,759,517.53 | 1,999,806,077.34 | 19,953,400.00 | -6,724,176.26 | 2,407,388,173.31
Shares and other non-fixed-income securities | 1,427,550,067.17 | 451,500,000.00 | 500,797,548.00 | 0.00 | 0.00 | 1,378,252,519.17
Total | 33,016,665,428.59 | 5,973,589,388.74 | 5,102,903,946.64 | 0.00 | -52,528,520.54 | 33,834,822,350.15

ACCUMULATED DEPRECIATION

in EUR | 1 January 2025 | Write-ups (-) | Write-downs (+) | Additions / Disposals (-/+) | Currency translation (+/-) | 31 December 2025
Participating interests | 96,094,446.65 | 23,881,223.89 | 6,248,423.90 | -802,006.50 | 0.00 | 77,659,640.16
Shares in affiliated companies | 1,564,155,937.42 | 360,534,136.60 | 10,862,693.00 | 0.00 | 0.00 | 1,214,484,493.82
Intangible fixed assets | 67,810,123.96 | 0.00 | 6,468,298.52 | 0.00 | 0.00 | 74,278,422.48
Tangible assets | 45,033,647.81 | 0.00 | 7,221,480.40 | -607,718.26 | 0.00 | 51,647,409.95
Securities | -186,565,207.63 | 110,753,287.20 | 27,365,770.44 | -19,773,093.94 | 462,621,369.22 | 172,895,550.89
Treasury bills and similar securities | -165,339,364.35 | 64,404,603.49 | 24,548,939.48 | -1,981,014.42 | 299,476,768.17 | 92,300,725.39
Loans and advances to credit institutions | -13,724,383.01 | 2,527,814.69 | 1,185,142.11 | -18,263,409.95 | 85,363,818.10 | 52,033,352.56
Loans and advances to customers | -13,214,114.95 | 17,323,136.77 | 208,232.42 | -4,585,499.70 | 33,557,492.54 | -1,357,026.46
Bonds and other fixed-income securities | -22,347,887.27 | 4,548,893.09 | 1,326,897.91 | 5,266,350.45 | 44,223,278.28 | 23,919,746.28
Shares and other non-fixed-income securities | 28,060,541.95 | 21,948,839.16 | 96,558.52 | -209,520.32 | 12.13 | 5,998,753.12
Total | 1,586,528,948.21 | 495,168,647.69 | 58,166,666.26 | -21,182,818.70 | 462,621,369.22 | 1,590,965,517.30

In the income statement item 9 (value adjustments), the above-mentioned depreciation of property, plant and equipment is reduced by investment grants in the amount of EUR 47,596.00 (prior
year: EUR 48 thousand).
366
CARRYING AMOUNT

in EUR | Clean price | Contractual interest accrual | 31 December 2025 | 1 January 2025
Participating interests | 205,621,137.18 | 0.00 | 205,621,137.18 | 155,622,283.59
Shares in affiliated companies | 10,237,814,268.86 | 0.00 | 10,237,814,268.86 | 9,796,892,382.09
Intangible fixed assets | 28,797,223.01 | 0.00 | 28,797,223.01 | 27,129,215.69
Tangible assets | 167,590,513.14 | 0.00 | 167,590,513.14 | 170,826,570.73
Securities | 21,604,033,690.66 | 216,170,546.58 | 21,820,204,237.24 | 21,499,368,147.01
Treasury bills and similar securities | 15,057,385,486.88 | 129,510,703.52 | 15,186,896,190.40 | 13,250,524,781.47
Loans and advances to credit institutions | 2,273,466,979.75 | 9,337,797.25 | 2,282,804,777.00 | 2,162,552,668.69
Loans and advances to customers | 517,459,030.95 | 1,637,031.92 | 519,096,062.87 | 548,748,134.52
Bonds and other fixed-income securities | 2,383,468,427.03 | 33,470,189.61 | 2,416,938,616.64 | 4,111,304,370.33
Shares and other non-fixed-income securities | 1,372,253,766.05 | 42,214,824.28 | 1,414,468,590.33 | 1,426,238,192.00
Total | 32,243,856,832.85 | 216,170,546.58 | 32,460,027,379.43 | 31,649,838,599.11

The carrying amount of developed land was EUR 6,758,201.35 as of 31 December 2025 (prior year: EUR 6,758 thousand). The
carrying amount as of 31 December 2025 did not include leased assets. For the next financial year, Erste Group Bank AG will have
expenses from the use of tangible assets not disclosed in the balance sheet (rental and leasing contracts) of EUR 15,028,735.46
(prior year: EUR 14,457 thousand), and of EUR 71,641,958.00 for the next five financial years (prior year: EUR 69,045 thousand).
Intangible fixed assets include assets with a value of EUR 28,765,256.56 (prior year: EUR 27,092 thousand) that were acquired from
an affiliated company. During the reporting year, assets were acquired in the value of EUR 8,123,577.63 (prior year: EUR 7,737
thousand).
11. Other assets

in EUR or in EUR thousand | Dec 25 | Dec 24
Securities transactions | 23,168,771.16 | 28,325
Derivatives | 2,033,172,979.41 | 2,292,805
Accrued income | 16,849,345.55 | 12,296
Receivables from participating interests and affiliated companies | 175,118,125.73 | 202,173
Other payments and settlements | 428,097,358.49 | 352,588
Other assets | 2,676,406,580.34 | 2,888,187

The carrying amounts for derivatives are shown post offsetting with central counterparties. Derivative assets and liabilities as well
as provided and received cash collateral to cover the market values of outstanding derivatives are included in offsetting. Offsetting
is carried out according to clearing agent, central clearer and currency.
The carrying amount of derivatives in the balance sheet item other assets is reduced by EUR 3,158,491,667.22 (prior year: EUR
3,423,396 thousand). In the balance sheet item loans to customers, the carrying amount for trades with central counterparties was
reduced by EUR 23,374,077.54 (prior year: EUR 44,765 thousand). As a result of EUREX returning its banking license, the balance
sheet item loans to credit institutions decreased by EUR 2 thousand in the previous year.
12. Accrued and deferred items
Prepayments and deferred charges increased to EUR 98,447,275.20 as of 31 December 2025 (prior year: EUR 98,157 thousand). Of
these, EUR 92,353,601.27 (prior year: EUR 90,129 thousand) are to be amortized in connection with securities and derivative
instruments.
13. Deferred tax assets
In accordance with Section 198 Paragraph 9 of the Austrian Commercial Code (UGB) deferred tax assets amount to
EUR 32,160,381.40 (prior year: EUR 46,891 thousand) and is solely based on temporary differences. To calculate deferred taxes, the
local tax rate in Austria in the amount of 23.0% is applied for the parent company as well as for branches with tax credit method
367
according to the double taxation agreement. For the branch in Hong Kong (double taxation agreement with tax exemption
method), the local tax rate in the amount of 16.5% is applied.
14. Securitised liabilities
The decrease in the item ‘Mortgage and municipal bonds’ is due to the fact that own issuances, which were included as of
31 December 2024 with a carrying amount of EUR 8,456,167,821.38, are not listed on any regulated market in the current financial
year 2025 and are therefore not recognized in the financial statements.

in EUR or in EUR thousand | Dec 25 | Dec 24
Non-covered loans and bank bonds | 13,662,796,396.46 | 13,605,285
Mortgage and municipal bonds | 14,675,635,037.18 | 21,610,944
Certificates of deposits | 2,829,840,966.34 | 3,689,887
Securitised liabilities | 31,168,272,399.98 | 38,906,116

Erste Group Bank AG issues commercial papers and certificates of deposit for the US money market via the New York branch and
the fully consolidated subsidiary Erste Finance Delaware LLC. The New York branch’s Dollar Certificates of Deposit Program had
reached EUR 25,563,753.47 as 31 December 2025 (prior year: EUR 28,898 thousand). The Dollar Commercial Paper Program of
Erste Finance Delaware LLC is fully secured by Erste Group Bank AG. The framework program amounted to EUR 6,382,978,723.40
as of 31 December 2025 (prior year: EUR 7,219,174 thousand), of which commercial papers are in circulation in the amount of EUR
1,361,015,533.59 (prior year: EUR 2,020,638 thousand) for which the issue amount was immediately transferred to Erste Group
Bank AG and are recognised in the item liabilities to customers.
15. Other liabilities

in EUR or in EUR thousand | Dec 25 | Dec 24
Securities transaction | 38,336,370.80 | 28,365
Derivatives | 2,202,751,129.58 | 2,241,584
Accrued income | 6,438,505.25 | 2,302
Other liabilities and settlements | 1,447,360,721.06 | 801,727
Other liabilities | 3,694,886,726.69 | 3,073,978

The carrying amounts for derivatives are shown post offsetting with central counterparties. Derivative assets and liabilities as well
as provided and received cash collateral to cover the market values of outstanding derivatives are included in offsetting. Offsetting
is carried out according to clearing agent/central clearer and currency.
The carrying amount of derivatives in the balance sheet item other liabilities is reduced by EUR 2,904,232,430.46 (prior year: EUR
3,258,626 thousand). The carrying amount in the balance sheet item other liabilities to customers is reduced by EUR 276,418,140.25
(prior year: EUR 209,022 thousand). The carrying amount of derivatives in the balance sheet item other provisions is reduced by
EUR 1,215,174.05 (prior year: EUR 516 thousand).
16. Provisions

in EUR or in EUR thousand | Dec 25 | Dec 24
Provisions for pensions | 184,923,129.81 | 214,368
Provisions for taxation | 228,594,249.85 | 100,909
Provisions for contingent liabilities | 49,288,576.59 | 71,475
Provisions for derivatives in the bank book | 12,390,248.16 | 8,808
Other | 166,625,288.57 | 154,369
Provisions | 641,821,492.98 | 549,929

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Assumptions for the actuarial calculation of pension entitlements

| Dec 25 | Dez 24
Interest rate | 3.99% | 3.48%
Expected increase in pension benefits (including career- and collective agreement trend) | 4.00% | 4.00%

The expected retirement age was individually calculated per employee due to the amendments determined in the Ancillary Budget
Act 2003 (BGBl I 71/2003) concerning the raising of the earliest possible retirement age. The currently applicable legislation
specifying a gradual rise of the retirement age for men and women to 65 was taken into consideration.
An interest rate of 5.45% (prior year: 5.80%) was used for the calculation of pension obligations in the New York branch.
The pension entitlements for the New York branch are outsourced to Milliman Inc. The calculated pension obligations amount to
EUR 34,590,853.62 (prior year: EUR 36,553 thousand). As of 31 December 2025, the balance at the bank dedicated to the fulfilment
of the outsourced pension obligations amounted to EUR 32,734,760.00 (prior year: EUR 33,336 thousand).
Assumptions for the actuarial calculation of severance entitlements and jubilee benefits

| Dec 25 | Dec 24
Interest rate | 3.99% | 3.48%
Average salary rise (including career- and collective agreement trend) | 4.00% | 4.00%

The obligations were calculated in accordance with the Association of Actuaries’ (AVÖ) mortality table "AVÖ 2018 –
Rechnungsgrundlagen für die Pensionsversicherung".
Severance and anniversary entitlements are outsourced to Wiener Städtische Versicherung AG. Severance entitlements measured
in accordance with commercial law and based on the above parameters amount to EUR 25,592,949.26 (prior year: EUR 28,180
thousand), respectively EUR 15,142,452.17 (prior year: EUR 17,239 thousand) for jubilee benefits obligations and are posted as a
contingent liability off-balance. The credit intended for the performance of outsourced severance entitlements with the insurer as of
31 December 2025 amounted to EUR 27,413,311.86 (prior year: EUR 29,422 thousand) and the amount defined for jubilee benefits
obligations is EUR 15,637,917.42 (prior year: EUR 17,239 thousand).
The outsourcing of severance/jubilee benefits entitlements to Wiener Städtische Versicherung AG has not resulted in any change to
employee claims against Erste Group Bank AG, which continues to be liable for the severance/jubilee benefits entitlements of
eligible employees.
Provision for pensions, severance payments and anniversary bonuses are calculated in accordance with AFRAC statement 27:
provision for personnel (UGB) (June 2022).
17. Subordinated liabilities, Tier 2 capital and additional core capital
SUBORDINATED LIABILITIES
As of 31 December 2025, subordinated debt (subordinated liabilities and supplementary capital) amounted to EUR 8,294,465,804.86
(previous year: EUR 7,434,625 thousand). Of the subordinated liabilities issued by Erste Group Bank AG (including supplementary
capital), a single issuance with a nominal value of EUR 1,000,000,000.00 exceeded the limit of 10% of the total subordinated debt
portfolio.
This instrument carries a fixed coupon of 6.375% until 2032, after which the interest rate resets to a variable rate of mid‑swap plus
4.008%. The bond is callable on any coupon payment date starting 15 October 2032. It qualifies as an Additional Tier 1 instrument
under Article 52 of the CRR and therefore has no fixed maturity. The nominal value of the bonds will be reduced as soon as the
common equity tier 1 ratio falls below 5.125%. There is no provision for conversion into shares.
The modalities of the subordinated debt in the amount of EUR 4,750,357,651.37 (previous year: EUR 4,679,784 thousand) fulfill the
conditions of Art. 62 to 71 CRR (Part 2 Title 1 Chapter 4 of Regulation (EU) No. 575/2013).
Movements in total subordinated liabilities were as follows:
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in EUR or in EUR thousand | 1-12 25 | 1-12 24
Opening balance | 7,434,625,358.19 | 6,476,077
Increase due to new issues | 1,880,475,486.31 | 1,763,386
Decrease due to redemption | -1,050,836,978.55 | -503,885
Decrease due to partial extinguishment | 0.00 | -299,799
Changes in carrying amount of bonds, of accrued interest and of FX valuation | 30,201,938.91 | -1,155
Closing balance | 8,294,465,804.86 | 7,434,625

Supplementary capital liabilities are primarily issued in the form of securities. The securities are due at the end of the term.
Supplementary capital bonds are sold to international institutional customers and private customers.
In the upcoming year, securitised supplementary capital liabilities in the value of EUR 290,037,747.67 (prior year: EUR 340,211
thousand) are due for repayment due to maturity.
The weighted average interest rate of supplementary capital bonds was 3.2% as of 31 December 2025 (prior year: 3.0%) and the
average remaining term was 6.7 years (prior year: 6.4 years).
The term “subordinated” is defined in accordance with section 45, paragraph 4 and section 51, paragraph 9 of the Austrian Banking
Act.
Erste Group Bank AG also issued a senior non-preferred bond in the amount of EUR 502,672,945.21 (prior year: EUR 502,673
thousand), which will mature next year.
In 2025, Erste Group Bank AG's expenses for subordinated liabilities amounted to EUR 344,103,956.93 (prior year: EUR 281,030
thousand).
TIER 2 CAPITAL PURSUANT TO PART 2 TITLE I CHAPTER 4 OF REGULATION (EU) NO 575/2013
As of the 2025 balance sheet date, the carrying amount of supplementary capital is EUR 4,750,357,651.37 (prior year:
EUR 4,679,784 thousand). Thereof amounts the repurchased supplementary capital from own issues of Erste Group Bank AG with
a carrying amount including interest accruals in the amount to EUR 11,654,257.38 (prior year: EUR 13,162 thousand).
ADDITIONAL CORE CAPITAL
In the reporting year 2025, Erste Group Bank AG issued a new bond totalling EUR 1,000,000,000.00 (prior year: EUR 750,000
thousand) as part of its Additional Tier 1 programme from 20 April 2016. In addition, a redemption of the 2019 issuance was made
in the amount of EUR 203,400,000.00 (prior year: EUR 168,800 thousand).
Article 52 (1) lit n CRR provides for the loss absorbency of financial instruments of additional core capital (write-down or
conversion). A trigger event for the write-off or conversion of additional core capital is deemed to occur according to Article 54 (1)
lit a CRR if the core capital ratio of the Erste Group Bank AG falls below 5.125% or below another higher value defined by the Erste
Group Bank AG. In 2025 no write-downs occurred.
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18. Subscribed capital and reserves
In 2025, the capital of Erste Group Bank AG developed as follows:

in EUR | 1 January 2025 | Allocations (+) | Releases (-) | Reclassification | 31 December 2025
Subscribed Capital | 821,028,768.00 |  |  |  | 821,028,768.00
Capital reserves | 1,666,725,957.86 | 0.00 | 0.00 | 138,932.15 | 1,666,864,890.01
committed | 1,666,725,957.86 |  |  | 138,932.15 | 1,666,864,890.01
uncommitted | 0.00 |  |  |  | 0.00
Reserves for share-based payments | 9,890,118.10 |  |  | -2,314,830.05 | 7,575,288.05
Retained earnings | 7,149,052,624.74 | 2,399,673,577.60 | 0.00 | -2,216,549.90 | 9,546,509,652.44
statutory reserve | 1,537,900,000.00 |  |  |  | 1,537,900,000.00
reserves provided for by the articles | 0.00 |  |  |  | 0.00
other reserves | 5,447,939,005.89 | 2,370,847,710.41 |  | -2,216,549.90 | 7,816,570,166.40
blocked reserves | 163,213,618.85 | 28,825,867.19 |  |  | 192,039,486.04
Reserves for own shares | 0.00 |  |  |  | 0.00
Reserve pursuant to section 57 (5) of Austrian Banking Act (BWG) | 851,000,000.00 |  |  |  | 851,000,000.00

As of 31 December 2025 the subscribed capital amounted to EUR 821,028,768.00 (previous year: EUR 821,029 thousand) and was
divided into 410,514,384 of bearer, voting shares (ordinary shares). In addition, Erste Group Bank AG did not hold any own shares
as of the balance sheet date.
Erste Group Bank AG generated selling gains of EUR 138,932.15 (previous year: EUR 44 thousand) from the purchase and sale of
its own shares in the long portfolio and, in the previous year, also for the employee share ownership program. These selling gains
were recorded as additions to the committed capital reserve in accordance with section 229 (1a and 1b) of the Austrian Commercial
Code (UGB).
The net allocation to retained earnings totalled EUR 2,399,673,577.60 (previous year: EUR 1,177,630 thousand) and comprises EUR
2,370,847,710.41 (previous year: EUR 1,299,027 thousand) of other reserves and EUR 28,825,867.19 (previous year: release of EUR
121,397 thousand) of blocked reserves. The latter includes EUR 43,556,172.47 (previous year: EUR 38,965 thousand) from the
allocation to the ex-ante fund (see Note 21) and the release of deferred tax assets in the amount of EUR 14,058,931.86 (previous
year: allocation EUR 159,529 thousand) in Austria, EUR 669,067.79 (previous year: EUR 625 thousand) in the New York branch
and EUR 2,305.63 (previous ye ar: allocation EUR 209 thousand) in the Hong Kong branch.
Blocked reserves include the contribution to the ex-ante fund, which is not eligible for inclusion in own funds at member level in
accordance with Art. 26 (1) CRR, as well as amounts from the capitalisation of deferred taxes that are subject to a restriction on
distribution in accordance with section 235 (2) Austrian Commercial Code (UGB). These are recognised separately from the other
equity items due to the restricted right of disposal.
19. Authorised and conditional capital as of 31 December 2025
Authorised capital
According to clause 5 of the Articles of Association, the Management Board is authorised to increase the share capital with the
consent of the Supervisory Board until 18 May 2027 - also in several tranches - by an amount of up to EUR 343,600,000.00 by
issuing up to 171,800,000 voting no-par value bearer shares with voting rights against contributions in cash and/or in kind, whereby
the issue price and the issue conditions shall be determined by the Management Board with the consent of the Supervisory Board.
Furthermore, the Management Board is authorised to fully or partly exclude the subscription rights of the shareholders with the
consent of the Supervisory Board (exclusion of the subscription right):
_ if the capital increase is in return for contributions in kind; or
_ if the capital increase is in return for cash and the pro rata amount of the share capital attributable to the shares issued under
exclusion of subscription rights in both cases does not exceed EUR 85.960.000,00.
These two measures may also be combined.
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The proportionate amount of share capital attributable to the new shares (i) for which the subscription right is excluded, (ii) which
serve to fulfil subscription rights, conversion rights and conversion obligations arising from convertible bonds issued with the
exclusion of subscription rights from 18 May 2022, and (iii) which had been issued from conditional capital pursuant to section 6.3
to satisfy share options of employees, senior employees and members of the Management Board of the company or of a group
company, must not exceed 10% of the share capital in total.
Conditional Capital
Pursuant to clause 6.3 of the Articles of Association, conditional capital based on the Management Board resolutions in 2002 and
2010 with a nominal value of EUR 21,923,264.00 persists, which can be consumed by issuing up to 10,961,632 ordinary bearer
shares or ordinary registered shares with an issue price of at least EUR 2.00 per share against cash contribution and by excluding
the subscription rights of the current shareholders. According to clause 6.4 of the Articles of Association, a conditional increase of
the registered capital was resolved in the shareholders’ meeting of 12 May 2009 in an amount of up to EUR 124,700,000.00 by
issuing up to 62,350,000 ordinary bearer shares. This conditional capital serves to grant conversion or subscription rights to
investors of convertible bonds. In case the terms and conditions of the convertible bonds provide for a mandatory conversion, it
shall also serve to cover the mandatory conversion. The issue price and exchange ratio shall be determined pursuant to a
recognized pricing method on the basis of accepted finance-mathematical methods and the share price of the company.
Authorized conditional capital
According to clause 7 of the Articles of Association currently no authorised conditional capital exists.
20. Major Shareholders
As of 31 December 2025, together with its syndicate partners (savings banks, share management savings banks –
“Anteilsverwaltungssparkassen”, and savings bank foundations – “Sparkassenstiftungen”), DIE ERSTE oesterreichische Spar-Casse
Privatstiftung (“ERSTE Stiftung”), a foundation, controls 25.52% (prior year: 25.41%) of the shares in Erste Group Bank AG and
with 18.59% (prior year: 18.48%) is the main shareholder. The ERSTE Stiftung holds 6.00% (prior year: 5.94%) of the shares directly;
the indirect participation of the ERSTE Stiftung amounts to 12.59% (prior year: 12.54%) of the shares held by Sparkassen
Beteiligungs GmbH & Co KG, which is an affiliated undertaking of the ERSTE Stiftung. 2.66% (prior year: 2.66%) are held directly
by savings bank foundations, savings banks, and the Erste employee share participation foundation (Erste
Mitarbeiterbeteiligungsstiftung), acting together with the ERSTE Stiftung. 4.27% (prior year: 4.27%) are held by a syndicate partner,
Wiener Städtische Versicherungsverein.
On 21 May 2025, a decision was made at the annual general meeting in favour of paying a dividend in the amount of EUR 3.00 per
share. According to its share in Erste Group Bank AG, a dividend was paid for the ERSTE Stiftung amounting to EUR
151,140,000.00 (prior year: EUR 135,716 thousand) in the financial year 2025.
The purpose of the ERSTE Stiftung, to be achieved notably by way of holding interests in Erste Group Bank AG, is to support social,
scientific, cultural as well as charitable institutions and to promote the guiding principles of the savings bank philosophy. As of
31 December 2025, Gudrun Egger, Wolfgang Schopf und Martin Wohlmuth were appointed as board members of the ERSTE
Stiftung. The ERSTE Stiftung’s Supervisory Board had nine members at the end of 2025, one of whom is also an employee
representative on the Supervisory Board of Erste Group Bank AG.
In accordance with clause 15.1 of the Articles of Association, and for the time in which the ERSTE Stiftung assumes liability for all
current and future debts in the event of their default on payment, it is entitled, pursuant to section 92 (9) Austrian Banking Act, to
nominate up to one-third of the Supervisory Board members for election at the annual general meeting. So far, the ERSTE Stiftung
has not exercised this right.
The ERSTE Stiftung did not hold as of 31 December 2025 bonds of Erste Group Bank AG (prior year: EUR 0 thousand).
21. Resolution Fund, deposit guarantee fund, IPS fund
RESOLUTION FUND
Regulation (EU) No 806/2014 established a Single Resolution Mechanism (SRM), which has been exercising its resolution powers
since 1 January 2016. The SRM aims to strengthen the resilience of the financial system and help prevent future crises through the
372
timely and effective resolution of banks. The regulation sets out the framework for Member States participating in the Banking
Union for those cases in which bank resolution is necessary.
The SRM provides for the establishment of a Single Resolution Fund (SRF), which is intended to support the financing of
resolution measures, using pre-collected contributions from the banking sector. The eight-year build-up phase ended on 31
December 2023, and the SRF's financial resources amount to 1% of the insured deposits of the contributing institutions. As in the
previous year, no contributions were collected for the SRF in 2025.
The annual contribution amount is determined by the Single Resolution Board (SRB) and collected via the national resolution
authorities (in Austria, the Financial Market Authority). The individual contribution amount depends primarily on the institution's
size and the risk profile on the contributing institution as defined by the resolution authority.
DEPOSIT GUARANTEE FUND
The deposit guarantee scheme, based on an EU directive (2014/49/EU), serves to protect customer deposits held at credit
institutions. This EU directive was transposed into national law in Austria by way of the Act on Deposit Guarantee Schemes and
Investor Compensation (ESAEG) and came into effect on 14 August 2015.
Every guarantee scheme has its own deposit guarantee fund consisting of available financial resources amounting to no less than
0.8% of the sum of covered deposits held at the member institutions (target level). This target level was achieved over a period of 10
years on 3 rd July 2024.
Thus in 2025, Erste Group Bank AG paid a total of EUR 0.00 (prior year: EUR 37 thousand), which is included in the item other
administrative expenses.
IPS FUND (EX-ANTE-FUND)
The IPS (Institutional Protection Scheme) fund is an ex-ante-fund of the Austrian savings banks’ institutional guarantee system
(IPS) that is intended to secure financial support to members facing economic difficulties. The IPS fund is a "Gesellschaft
bürgerlichen Rechts" (IPS Fonds GesBR - a partnership under civil law) – the low-risk, readily available investment of the ex-ante-
fund is recognised as a special asset. Shareholders with a stake in the assets are Erste Group Bank AG, Erste Bank der
oesterreichischen Sparkassen AG, the building society of österreichische Sparkassen AG, and all other Austrian savings banks.
Cross-guarantee scheme (Haftungsverbund) GmbH is an active partner but not obliged to make a capital contribution.
By means of annual allocations from the member institutes, the ex-ante fund will be built up until 31 December 2031. The aim is to
achieve a volume amounting to 0.5% of the total risk exposure amount of Erste Group on a consolidated level, in accordance with
article 92 (3) CRR. Cross-guarantee scheme (Haftungsverbund) GmbH is tasked with determining the amount of the respective
payment due. The contributions (deposits) are to be taken from the annual financial result, with other reserves being released
where necessary. Erste Group Bank AG created a reserve which corresponds to the amount of the contributions made (deposits) of
EUR 43,556,172.47 (prior year: EUR 38,965 thousand) in 2025.
22. Securitisation transaction
In December 2024 and March 2025, Erste Group Bank AG carried out securitisation transactions (“EGB CRE LC 2024-1” and “EGB
CRE LC 2025-1”). The aim of these transactions was to hedge the credit risk of commercial real estate and commercial loan
portfolios by means of guarantees on the mezzanine tranches. The significant transfer of risk to investors reduced risk-weighted
assets and freed up regulatory capital for new lending. Unlike conventional true sale securitisations, these two synthetic
securitisations, EGB CRE LC 2024-1 and EGB CRE LC 2025-1, do not provide financing to the issuer.
The securitisations comprise existing portfolios of loans to commercial customers in contractually specified countries. The
receivables are not derecognized from the Erste Group Bank AG balance sheet, they continue to be carried in the books. The
transaction was not rated. The internal ratings-based approach (SEC-IRBA) was used to calculate the risk weights of the tranches.
Detailed information on the synthetic securitization transaction can be found in the following table:
373

name | EGB CRE LC 2024-1
type of securitization | synthetic
originator | Erste Group Bank AG
servicer | Erste Group Bank AG
aim of securitization | significant risk transfer
loan category | commercial real estate- and corporate loans
effective date | 31/12/2024
notional amount of loan portfolio | EUR 9,251,374,081.64 (thereoff securitized EUR 3,000,000,000.00 or 32.43% of notional amount)
rating agency | -
amount and terms of tranches | -
ISIN | -
seniority of tranche | Senior | Mezzanine | Junior
class | A | B | C
rating | no rating | no rating | no rating
listing | - | - | -
effective date | 31.12.2024 | 31.12.2024 | 31.12.2024
legal termination date | 31.12.2037 | 31.12.2037 | 31.12.2037
call options | time call, clean-up call, tax call and regulatory call
initial tranche size | €2,827,500,000.00 | €150,000,000.00 | €22,500,000.00
tranche size at the end of reference period | €2,827,500,000.00 | €150,000,000.00 | €22,500,000.00

name | EGB CRE LC 2025-1
type of securitization | synthetic
originator | Erste Group Bank AG
servicer | Erste Group Bank AG
aim of securitization | significant risk transfer
loan category | commercial real estate- and corporate loans
effective date | 31/3/2025
notional amount of loan portfolio | EUR 5,905,398,867.91 (thereoff securitized EUR 1,500,188,821.82 or 25.40% of notional amount)
rating agency | -
amount and terms of tranches | -
ISIN | -
seniority of tranche | Senior | Mezzanine | Junior
class | A | B | C
rating | no rating | no rating | no rating
listing | - | - | -
effective date | 31.3.2025 | 31.3.2025 | 31.3.2025
legal termination date | 31.12.2038 | 31.12.2038 | 31.12.2038
call options | time call, clean-up call, tax call and regulatory call
initial tranche size | €1,410,927,608.87 | €78,009,819.95 | €11,251,416.34
tranche size at the end of reference period | €1,410,927,608.87 | €78,009,819.95 | €11,251,416.34

23. Own funds and capital requirement
These unconsolidated financial statements of Erste Group Bank AG have yet to be approved by the Supervisory Board. Erste Group
Bank AG applies the transitional provisions regarding own funds requirements and credit risk according to the CRR accompanying
regulation as well as EU Regulation No. 2016/445 of the European Central Bank on the use of options and discretions under
European Union law, ECB/2016/4.
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Own funds - Capital structure according to Regulation (EU) No 575/2013 (CRR)

in EUR or in EUR thousand | Article pursuant to CRR | Dec 25 | Dec 24
Common equity tier 1 capital (CET1) |  |  |
Capital instruments eligible as CET1 | 26 (1) (a) (b), 27-30, 36 (1) (f), 42 | 2,325,360,231.54 | 2,325,743
Own CET1 instruments | 36 (1) (f), 42 | -40,312,511.34 | -23,197
Retained earnings | 26 (1) (c), 26 (2) | 9,743,239,988.60 | 6,721,856
OCI | 4 (100), 26 (1) (d) | -336,756,798.09 | -348,906
Other reserves | 4 (117), 26 (1) (e) | 889,571,232.00 | 889,571
Prudential filter: cash flow hedge reserve | 33 (1) (a) | -2,470,971.19 | -4,511
Prudential filter: cumulative gains and losses due to changes in own credit risk on fair valued liabilities | 33 (1) (b) | 103,880,806.38 | 97,151
Prudential filter: fair value gains and losses arising from the institution's own credit risk related to derivative liabilities | 33 (1) (c), 33 (2) | -7,457,773.88 | -4,315
Value adjustments due to the requirements for prudent valuation | 34, 105 | -65,029,589.23 | -58,492
Regulatory adjustments relating to unrealised gains and losses | 467, 468 | 0.00 | 0
Other intangible assets | 4 (115), 36 (1) (b), 37 (a) | -14,175,965.24 | -31,111
Deferred tax assets dependent upon future profitability and not temporary differences net of associated tax liabilities | 36 (1) (c), 38 | 0.00 | 0
IRB shortfall of credit risk adjustments to expected losses | 36 (1) (d), 40, 158, 159 | -50,029,634.95 | -107,691
Excess of deduction from AT1 items over AT1 | 36 (1) (j) | 0.00 | 0
Securitisation positions which can alternatively be subject to a 1250 % risk weight | 244 (1) (b), 245 (1) (b), 253 (1) | -42,440,469.64 | -27,058
Other components or deductions of the CET1 | 47 (c) | -28,355,729.69 | -10,615
Common equity tier 1 capital (CET1) | 50 | 12,475,022,815.27 | 9,418,426
Additional tier 1 capital (AT1) |  |  |
Additional tier 1 capital (AT1) | 51 (a), 52-54, 56 (a), 57 | 3,479,396,824.20 | 2,687,826
Own AT1 instruments | 52 (1) (b), 56 (a), 57 | -1,400,000.00 | -1,400
Instruments issued by subsidiaries that are given recognition in AT1 | 85, 86 | 0.00 | 0
Transitional adjustments due to grandfathered AT1 instruments | 483 (4) (5), 484-487, 489, 491 | 0.00 | 0
AT1 instruments of financial sector entities where the institution has a significant investment | 4 (27), 56 (d), 59, 79 | 0.00 | 0
Excess of deduction from AT1 items over AT1 | 36 (1) (j) | 0.00 | 0
Additional tier 1 capital (AT1) | 61 | 3,477,996,824.20 | 2,686,426
Tier 1 capital - total amount of common equity tier 1 (CET1) and additional tier1 (AT1) |  | 15,953,019,639.47 | 12,104,851
Tier 2 capital (T2) |  |  |
Capital instruments and subordinated loans eligible as T2 | 62 (a), 63-65, 66 (a), 67 | 4,100,220,252.40 | 3,898,098
Own T2 instruments | 63 (b) (i), 66 (a), 67 | -55,091,813.74 | -54,595
Instruments issued by subsidiaries recognised in T2 | 87, 88 | 0.00 | 0
Transitional adjustments due to additional recognition in T2 of instruments issued by subsidiaries | 480 | 0.00 | 0
Transitional adjustments due to grandfathered T2 instruments and subordinated loans | 483 (6) (7), 484, 486, 488, 490, 491 | 0.00 | 0
IRB excess of provisions over expected losses eligible | 62 (d) | 0.00 | 0
Standardised approach general credit risk adjustments | 62 (c) | 0.00 | 0
T2 instruments of financial sector entities where the institution has a significant investment | 4 (27), 66 (d), 68, 69, 79 | 0.00 | 0
Tier 2 capital (T2) | 71 | 4,045,128,438.66 | 3,843,503
Total own funds |  | 19,998,148,078.13 | 15,948,354
Total Risk Exposure Amount | 92 (3), 95, 96, 98 | 39,303,765,100.17 | 40,976,387
CET1 capital ratio | 92 (2) (a) | 31.74% | 22.99%
Tier 1 capital ratio | 92 (2) (b) | 40.59% | 29.54%
Total capital ratio | 92 (2) (c) | 50.88% | 38.92%

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Capital Requirements - Risk structure according to Regulation (EU) No 575/2013 (CRR)

|  | Dec 25 | Dec 24
in EUR or in EUR thousand | Article pursuant to CRR | Calculation base/ total risk | Capital requirement | Calculation base/ total risk | Capital requirement
Total Risk Exposure Amount | 92 (3), 95, 96, 98 | 39,303,765,100.17 | 3,144,301,208.01 | 40,976,387 | 3,278,111
Risk weighted assets (credit risk) | 92 (3) (a) (f) | 30,064,638,864.77 | 2,405,171,109.18 | 35,807,568 | 2,864,605
Standardised approach |  | 15,073,897,694.65 | 1,205,911,815.57 | 4,426,865 | 354,149
IRB approach |  | 14,201,220,526.32 | 1,136,097,642.11 | 30,888,076 | 2,471,046
Default fund contributions to a central counterparty |  | 10,245,831.50 | 819,666.52 | 8,231 | 658
Securitisation positions |  | 779,274,812.30 | 62,341,984.98 | 484,397 | 38,752
Settlement Risk | 92 (3) (c) (ii), 92 (4) (b) | 696,769.63 | 55,741.57 | 145 | 12
Trading book, foreign FX risk and commodity risk | 92 (3) (b) (i) and (iii), 92 (4) (b) | 3,432,596,204.14 | 274,607,696.33 | 3,782,139 | 302,571
Operational Risk | 92 (3) (e), 92 (4) (b) | 5,168,399,710.00 | 413,471,976.80 | 965,715 | 77,257
Exposure for CVA | 92 (3) (d) | 637,433,551.63 | 50,994,684.13 | 420,821 | 33,666
Other amounts receivable (regulatory Add-On) |  | 0.00 | 0.00 | 0 | 0
Other exposure amounts incl. Basel 1 floor | 3, 458, 459 | 0.00 | 0.00 | 0 | 0

For the preparation of consolidated capital and consolidated capital requirements, reference is made to the corresponding
statements in the Erste Group’s Consolidated Financial Statements. Erste Group Bank AG has filed an application for early
recognition of year-end profits according to Art 26 para. 2 CRR.
24. List of assets pledged as collateral for liabilities (acc. to section 64 [1] no. 8
Austrian Banking Act)

in EUR or in EUR thousand | Dec 25 | Dec 24 | Liability description | Balance sheet item
OeNB asset pool (tender) | 377,418,194.89 | 252,287 |  |
Fixed-income securities | 377,418,194.89 | 252,287 | Refinancing by OeNB / ECB | Liability 1
Collateral pool for municipal and mortgage bonds* | 197,490,028.46 | 169,434 |  |
Loans and advances to customers | 197,490,028.46 | 169,434 | Issued municipal and mortgage bonds | Liability 3
Collateral for derivatives | 1,346,586,031.68 | 1,398,701 |  |
Cash Collateral for OTC-derivatives | 841,591,262.74 | 1,016,703 | Other liabilities | Liability 4
Cash Collateral for exchange traded derivatives | 34,136,811.75 | 4,609 | margin requirement |
Blocked securities account as collateral for OTC- and exchange traded derivatives | 470,857,957.19 | 377,388 | Other liabilities / margin requirement | Liability 4
Coverage for the pension provisions | 110,378,770.06 | 156,828 |  |
Pension provisions § 11 BPG | 110,378,770.06 | 156,828 | Coverage for the pension provisions | Liability 6
Pledge agreements | 286,421,464.55 | 297,560 |  |
Securities loan | 286,421,464.55 | 297,560 | Guarantees and contingent liabilities pledged as collateral |
Collateralized Guarantee | 792,609,214.21 | 841,008 |  |
Securities loan | 792,609,214.21 | 841,008 | Guarantees and contingent liabilities pledged as collateral |
Total | 3,110,903,703.85 | 3,115,817 |  |

*previous year adjusted
Eligible collateral totalling EUR 33,519,272,576.64 (previous year: EUR 33,641,839 thousand) was provided by the savings banks for
Erste Group Bank AG's own liabilities.
In addition to the collateral specified above, own issued covered bonds that are not listed on a regulated market and therefore are
not recognized in the balance sheet were pledged as collateral in repurchase agreements with a nominal value of EUR
4,431,300,000.00 (previous year: EUR 0 thousand ) and were lent as part of securities lending transactions with a nominal value of
EUR 5,057,000,000.00 (previous year: EUR 0 thousand).
376
Furthermore, the company's own issued covered bonds that were not placed on the market, with a nominal value of EUR
851,000,000.00 (previous year: EUR 500,000 thousand), were pledged as collateral in repurchase agreements.
25. Total volume of unsettled derivatives

Dec 25 | Remaining maturity nominals |
in EUR | < 1 years | 1-5 years | > 5 years | Total
Interest rate contracts | 91,861,484,397.95 | 160,513,997,415.37 | 71,391,267,844.44 | 323,766,749,657.76
OTC products | 91,251,906,694.93 | 160,513,997,415.37 | 71,391,267,844.44 | 323,157,171,954.74
Options | 2,221,132,439.53 | 23,434,656,292.33 | 547,435,372.47 | 26,203,224,104.33
Other (f.i.: Interest rate swaps) | 89,030,774,255.40 | 137,079,341,123.04 | 70,843,832,471.97 | 296,953,947,850.41
Exchange-traded products | 609,577,703.02 | 0.00 | 0.00 | 609,577,703.02
Options | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Futures) | 609,577,703.02 | 0.00 | 0.00 | 609,577,703.02
Securities related business | 1,587,855,012.95 | 1,700,228,842.02 | 180,206,000.00 | 3,468,289,854.97
OTC products | 1,424,317,193.10 | 1,678,873,957.43 | 180,206,000.00 | 3,283,397,150.53
Options | 514,836,032.32 | 770,807,322.08 | 23,650,000.00 | 1,309,293,354.40
Other (f.i.: Stock swaps) | 909,481,160.78 | 908,066,635.35 | 156,556,000.00 | 1,974,103,796.13
Exchange-traded products | 163,537,819.85 | 21,354,884.59 | 0.00 | 184,892,704.44
Options | 50,040,508.63 | 21,354,884.59 | 0.00 | 71,395,393.22
Other (f.i.: Futures) | 113,497,311.22 | 0.00 | 0.00 | 113,497,311.22
Currency contracts | 52,158,762,574.27 | 12,565,778,537.35 | 3,355,900,233.25 | 68,080,441,344.87
OTC products | 52,125,538,779.59 | 12,565,778,537.35 | 3,355,900,233.25 | 68,047,217,550.19
Options | 2,051,853,934.89 | 581,498,765.51 | 0.00 | 2,633,352,700.40
Other (f.i.: Currency swap) | 50,073,684,844.70 | 11,984,279,771.84 | 3,355,900,233.25 | 65,413,864,849.79
Exchange-traded products | 33,223,794.68 | 0.00 | 0.00 | 33,223,794.68
Options | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Futures) | 33,223,794.68 | 0.00 | 0.00 | 33,223,794.68
Credit derivatives | 13,240,000.00 | 265,832,502.15 | 0.00 | 279,072,502.15
OTC products | 13,240,000.00 | 265,832,502.15 | 0.00 | 279,072,502.15
Credit default options | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Credit Default Swaps) | 13,240,000.00 | 265,832,502.15 | 0.00 | 279,072,502.15
Exchange-traded products | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00
Other | 0.00 | 0.00 | 0.00 | 0.00
Commodity contracts | 10,802,314.89 | 0.00 | 0.00 | 10,802,314.89
OTC products | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Commodity swaps) | 0.00 | 0.00 | 0.00 | 0.00
Exchange-traded products | 10,802,314.89 | 0.00 | 0.00 | 10,802,314.89
Options | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Futures) | 10,802,314.89 | 0.00 | 0.00 | 10,802,314.89
Other | 465,779,434.72 | 877,352,328.61 | 54,000,000.00 | 1,397,131,763.33
OTC products | 465,779,434.72 | 877,352,328.61 | 54,000,000.00 | 1,397,131,763.33
Options | 25,000,000.00 | 120,000,000.00 |  | 145,000,000.00
Other (f.i.: Inflation swaps) | 440,779,434.72 | 757,352,328.61 | 54,000,000.00 | 1,252,131,763.33
Exchange-traded products | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00
Other | 0.00 | 0.00 | 0.00 | 0.00
Total | 146,097,923,734.78 | 175,923,189,625.50 | 74,981,374,077.69 | 397,002,487,437.97
OTC products | 145,280,782,102.34 | 175,901,834,740.91 | 74,981,374,077.69 | 396,163,990,920.94
Exchange-traded products | 817,141,632.44 | 21,354,884.59 | 0.00 | 838,496,517.03

The nominal values were presented without netting the transactions with central counterparties.
377

Dec 24 | Remaining maturity nominals |
in EUR thousand | < 1 years | 1-5 years | > 5 years | Total
Interest rate contracts | 66,887,022 | 134,594,517 | 75,345,756 | 276,827,295
OTC products | 66,097,684 | 134,457,614 | 75,345,756 | 275,901,054
Options | 2,046,762 | 11,517,206 | 680,584 | 14,244,552
Other (f.i.: Interest rate swaps) | 64,050,922 | 122,940,408 | 74,665,173 | 261,656,502
Exchange-traded products | 789,337 | 136,903 | 0 | 926,241
Options | 0 | 0 | 0 | 0
Other (f.i.: Futures) | 789,337 | 136,903 | 0 | 926,241
Securities related business | 1,279,949 | 2,431,828 | 510,813 | 4,222,590
OTC products | 1,076,962 | 2,431,828 | 510,813 | 4,019,603
Options | 468,890 | 977,794 | 63,367 | 1,510,050
Other (f.i.: Stock swaps) | 608,072 | 1,454,034 | 447,446 | 2,509,553
Exchange-traded products | 202,987 | 0 | 0 | 202,987
Options | 51,372 | 0 | 0 | 51,372
Other (f.i.: Futures) | 151,615 | 0 | 0 | 151,615
Currency contracts | 46,506,845 | 15,564,937 | 3,200,892 | 65,272,674
OTC products | 46,490,452 | 15,564,937 | 3,200,892 | 65,256,281
Options | 2,954,215 | 439,023 | 0 | 3,393,239
Other (f.i.: Currency swap) | 43,536,237 | 15,125,914 | 3,200,892 | 61,863,043
Exchange-traded products | 16,393 | 0 | 0 | 16,393
Options | 0 | 0 | 0 | 0
Other (f.i.: Futures) | 16,393 | 0 | 0 | 16,393
Credit derivatives | 123,904 | 213,848 | 0 | 337,752
OTC products | 123,904 | 213,848 | 0 | 337,752
Credit default options | 0 | 0 | 0 | 0
Other (f.i.: Credit Default Swaps) | 123,904 | 213,848 | 0 | 337,752
Exchange-traded products | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0
Other | 0 | 0 | 0 | 0
Commodity contracts | 6,893 | 0 | 0 | 6,893
OTC products | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0
Other (f.i.: Commodity swaps) | 0 | 0 | 0 | 0
Exchange-traded products | 6,893 | 0 | 0 | 6,893
Options | 0 | 0 | 0 | 0
Other (f.i.: Futures) | 6,893 | 0 | 0 | 6,893
Other | 7,500 | 1,199,824 | 124,443 | 1,331,768
OTC products | 7,500 | 1,199,824 | 124,443 | 1,331,768
Options | 0 | 125,000 | 20,000 | 145,000
Other (f.i.: Inflation swaps) | 7,500 | 1,074,824 | 104,443 | 1,186,768
Exchange-traded products | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0
Other | 0 | 0 | 0 | 0
Total | 114,812,112 | 154,004,955 | 79,181,905 | 347,998,971
OTC products | 113,796,503 | 153,868,052 | 79,181,905 | 346,846,459
Exchange-traded products | 1,015,609 | 136,903 | 0 | 1,152,512

378
26. Derivative financial instruments and fixed-asset financial instruments
Derivative financial instruments

Dec 25 | Notional amount | Carrying amount | Fair value
in EUR |  | thereof sells | Assets (+) / Liabilities (-) | Positive | Negative
Interest rate contracts | 323,766,749,657.76 | 3,101,930,903.36 | -46,921,478.29 | 4,814,072,051.89 | -5,012,029,788.94
OTC products | 323,157,171,954.74 | 3,101,930,903.36 | -46,921,478.29 | 4,814,072,051.89 | -5,012,029,788.94
Options | 26,203,224,104.33 | 3,101,930,903.36 | 61,556,493.13 | 87,309,610.56 | -25,768,796.26
Other (f.i.: Interest rate swaps) | 296,953,947,850.41 |  | -108,477,971.42 | 4,726,762,441.33 | -4,986,260,992.68
Exchange-traded products | 609,577,703.02 | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Futures) | 609,577,703.02 |  | 0.00 | 0.00 | 0.00
Securities related business | 3,468,289,854.97 | 609,713,751.28 | -7,335,779.92 | 208,183,803.53 | -159,873,268.18
OTC products | 3,283,397,150.53 | 547,116,152.61 | -5,469,526.32 | 207,560,671.34 | -157,383,882.38
Options | 1,309,293,354.40 | 547,116,152.61 | 61,449,357.40 | 113,453,768.82 | -62,613,770.83
Other (f.i.: Stock swaps) | 1,974,103,796.13 |  | -66,918,883.72 | 94,106,902.52 | -94,770,111.55
Exchange-traded products | 184,892,704.44 | 62,597,598.67 | -1,866,253.60 | 623,132.19 | -2,489,385.80
Options | 71,395,393.22 | 62,597,598.67 | -1,866,253.60 | 623,132.19 | -2,489,385.80
Other (f.i.: Futures) | 113,497,311.22 |  | 0.00 | 0.00 | 0.00
Currency contracts | 68,080,441,344.87 | 1,539,758,823.73 | -245,410,797.49 | 534,900,936.94 | -779,838,631.81
OTC products | 68,047,217,550.19 | 1,539,758,823.73 | -245,410,797.49 | 534,900,936.94 | -779,838,631.81
Options | 2,633,352,700.40 | 1,539,758,823.73 | -969,178.25 | 24,065,178.54 | -25,034,356.79
Other (f.i.: Currency swap) | 65,413,864,849.79 |  | -244,441,619.24 | 510,835,758.40 | -754,804,275.02
Exchange-traded products | 33,223,794.68 | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Futures) | 33,223,794.68 |  | 0.00 | 0.00 | 0.00
Credit derivatives | 279,072,502.15 | 9,470,000.00 | -9,664,238.57 | 709,216.07 | -4,997,127.84
OTC products | 279,072,502.15 | 9,470,000.00 | -9,664,238.57 | 709,216.07 | -4,997,127.84
Credit default options | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Credit Default Swaps) | 279,072,502.15 | 9,470,000.00 | -9,664,238.57 | 709,216.07 | -4,997,127.84
Exchange-traded products | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Other | 0.00 |  | 0.00 | 0.00 | 0.00
Commodity contracts | 10,802,314.89 | 0.00 | 0.00 | 0.00 | 0.00
OTC products | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Commodity swaps) | 0.00 |  | 0.00 | 0.00 | 0.00
Exchange-traded products | 10,802,314.89 | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Futures) | 10,802,314.89 |  | 0.00 | 0.00 | 0.00
Other | 1,397,131,763.33 | 0.00 | 2,840,338.81 | 13,332,747.04 | -15,118,440.22
OTC products | 1,397,131,763.33 | 0.00 | 2,840,338.81 | 13,332,747.04 | -15,118,440.22
Options | 145,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00
Other (f.i.: Inflation swaps) | 1,252,131,763.33 |  | 2,840,338.81 | 13,332,747.04 | -15,118,440.22
Exchange-traded products | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Options | 0.00 | 0.00 | 0.00 | 0.00 | 0.00
Other | 0.00 |  | 0.00 | 0.00 | 0.00
Total | 397,002,487,437.97 | 5,260,873,478.37 | -306,491,955.46 | 5,571,198,755.47 | -5,971,857,256.99
thereof external/internal deals |  |  |  |  |
external deals | 366,970,286,560.82 | 5,105,723,366.68 | -71,523,948.05 | 4,691,612,963.45 | -5,092,271,464.96
internal deals | 30,032,200,877.15 | 155,150,111.69 | -234,968,007.41 | 879,585,792.02 | -879,585,792.03
thereof OTC/Exchange-traded products |  |  |  |
OTC products | 396,163,990,920.94 | 5,198,275,879.70 | -304,625,701.86 | 5,570,575,623.28 | -5,969,367,871.19
Exchange-traded products | 838,496,517.03 | 62,597,598.67 | -1,866,253.60 | 623,132.19 | -2,489,385.80
thereof trading book/banking book |  |  |  |  |
Trading Book | 355,537,195,527.49 | 5,243,113,478.37 | -128,020,067.16 | 4,834,382,173.54 | -4,850,388,172.94
Banking Book | 41,465,291,910.48 | 17,760,000.00 | -178,471,888.30 | 736,816,581.93 | -1,121,469,084.05
thereof hedges | 36,359,546,446.33 | 17,760,000.00 | -60,379,369.28 | 735,259,123.13 | -1,011,703,064.41

379
Nominal Values and fair values are presented without netting transactions with central counterparties.
The carrying amounts of derivatives are reported after netting transactions with central counterparties. The netting includes
derivatives on the asset and liability side as well as cash collateral provided or received to cover the fair values of derivatives not yet
matured (cash collaterals). Netted carrying amounts are shown on the balance sheet on other assets or other liabilities.

Dec 24 | Notional amount | Carrying amount | Fair value
in EUR thousand |  | thereof sells | Assets (+) / Liabilities (-) | Positive | Negative
Interest rate contracts | 276,827,295 | 3,847,797 | -54,065 | 5,222,410 | -5,546,345
OTC products | 275,901,054 | 3,847,797 | -54,065 | 5,222,410 | -5,546,345
Options | 14,244,552 | 3,847,797 | 39,309 | 78,801 | -39,535
Other (f.i.: Interest rate swaps) | 261,656,502 |  | -93,374 | 5,143,610 | -5,506,810
Exchange-traded products | 926,241 | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0 | 0
Other (f.i.: Futures) | 926,241 |  | 0 | 0 | 0
Securities related business | 4,222,590 | 570,325 | 23,195 | 242,640 | -223,364
OTC products | 4,019,603 | 532,292 | 24,078 | 241,229 | -221,070
Options | 1,510,050 | 532,292 | 65,525 | 134,619 | -115,169
Other (f.i.: Stock swaps) | 2,509,553 |  | -41,447 | 106,610 | -105,900
Exchange-traded products | 202,987 | 38,033 | -883 | 1,411 | -2,294
Options | 51,372 | 38,033 | -883 | 1,411 | -2,294
Other (f.i.: Futures) | 151,615 |  | 0 | 0 | 0
Currency contracts | 65,272,674 | 1,899,019 | -69,091 | 706,106 | -774,113
OTC products | 65,256,281 | 1,899,019 | -69,091 | 706,106 | -774,113
Options | 3,393,239 | 1,899,019 | -1,392 | 29,126 | -30,518
Other (f.i.: Currency swap) | 61,863,043 |  | -67,699 | 676,980 | -743,595
Exchange-traded products | 16,393 | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0 | 0
Other (f.i.: Futures) | 16,393 |  | 0 | 0 | 0
Credit derivatives | 337,752 | 0 | -2,409 | 2,106 | -7,106
OTC products | 337,752 | 0 | -2,409 | 2,106 | -7,106
Credit default options | 0 | 0 | 0 | 0 | 0
Other (f.i.: Credit Default Swaps) | 337,752 | 0 | -2,409 | 2,106 | -7,106
Exchange-traded products | 0 | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0 | 0
Other | 0 |  | 0 | 0 | 0
Commodity contracts | 6,893 | 0 | 0 | 0 | 0
OTC products | 0 | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0 | 0
Other (f.i.: Commodity swaps) | 0 |  | 0 | 0 | 0
Exchange-traded products | 6,893 | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0 | 0
Other (f.i.: Futures) | 6,893 |  | 0 | 0 | 0
Other | 1,331,768 | 0 | 1,819 | 14,770 | -16,494
OTC products | 1,331,768 | 0 | 1,819 | 14,770 | -16,494
Options | 145,000 | 0 | 0 | 0 | 0
Other (f.i.: Inflation swaps) | 1,186,768 |  | 1,819 | 14,770 | -16,494
Exchange-traded products | 0 | 0 | 0 | 0 | 0
Options | 0 | 0 | 0 | 0 | 0
Other | 0 |  | 0 | 0 | 0
Total | 347,998,971 | 6,317,141 | -100,550 | 6,188,032 | -6,567,422
thereof external/internal deals |  |  |  |  |
external deals | 315,867,037 | 6,083,900 | 25,226 | 5,250,716 | -5,630,105
internal deals | 32,131,934 | 233,242 | -125,776 | 937,316 | -937,316
thereof OTC/Exchange-traded products |  |  |  |
OTC products | 346,846,459 | 6,279,108 | -99,667 | 6,186,621 | -6,565,128
Exchange-traded products | 1,152,512 | 38,033 | -883 | 1,411 | -2,294
thereof trading book/banking book |  |  |  |  |
Trading Book | 309,680,555 | 6,285,531 | -35,437 | 5,431,262 | -5,355,074
Banking Book | 38,318,416 | 31,610 | -65,112 | 756,770 | -1,212,347
thereof hedges | 34,788,798 | 31,610 | -63,341 | 746,703 | -1,203,577

380
Book values are represented in the following balance sheet items:

in EUR or in EUR thousand | Dec 25 | thereof internal trades | Dec 24 | thereof internal trades
A12 Other assets | 2,033,172,979.41 | 493,610,051.00 | 2,292,805 | 587,321
A14 Prepayments and accrued income | 7,875,157.00 | 7,619,062.92 | 9,313 | 9,047
P04 Other liabilities | 2,202,751,129.58 | 685,048,014.64 | 2,241,584 | 640,343
P05 Accruals and deferred income | 132,398,714.13 | 51,028,817.84 | 152,276 | 79,523
P06 Provisions | 12,390,248.16 | 120,288.85 | 8,808 | 2,278

Embedded derivatives

| Dec 25 | Dec 24
| Notional amount | Fair value | Notional amount | Fair value
in EUR or in EUR thousand |  | Positive | Negative |  | Positive | Negative
Securities related business | 1,039,146,776.61 | 38,593,392.55 | -83,765,507.96 | 1,407,331 | 81,007 | -85,635
Credit derivatives | 5,260,000.00 | 112,052.45 | -233,608.51 | 32,695 | 474 | -821
Other | 297,162,000.00 | 4,143,120.49 | -4,640,741.64 | 297,162 | 4,788 | -5,110
Total | 1,341,568,776.61 | 42,848,565.49 | -88,639,858.11 | 1,737,188 | 86,270 | -91,567

Embedded derivatives are reported together with the underlying liability in accordance with AFRAC Statement 15 (2023), as the
embedded derivatives are fully hedged. Therefore, the table does not include any book values.
Improved internal reports enabled simpler identification of embedded derivatives. The amounts of the comparative period 2024
have been adjusted accordingly.
Fixed assets instruments
In the following table the figures are displayed without contractual interest accruals.

in EUR or in EUR thousand | Carrying amount | Positive fair value | Hidden losses | Hidden reserves
Dec 25 |  |  |  |
Treasury bills | 8,346,640,044.14 | 7,802,674,467.58 | -543,965,576.56 |
| 6,710,745,442.11 | 6,771,115,495.26 |  | 60,370,053.15
Loans and advances to credit institutions | 714,732,677.37 | 702,674,348.60 | -12,058,328.77 |
| 1,558,734,302.38 | 1,581,056,394.98 |  | 22,322,092.60
Loans and advances to customers | 36,352,854.67 | 36,011,090.95 | -341,763.72 |
| 481,105,363.33 | 483,267,170.43 |  | 2,161,807.10
Debt securities | 1,388,998,903.71 | 1,317,947,828.22 | -71,051,075.49 |
| 994,469,523.33 | 1,006,879,430.31 |  | 12,409,906.98
Shares and other variable-yield securities | 267,677,091.86 | 267,639,736.91 | -37,354.95 |
| 1,104,576,674.19 | 1,155,395,673.00 |  | 50,818,998.81
Financial instruments carried as fixed assets | 10,754,401,571.75 | 10,126,947,472.26 | -627,454,099.49 |
| 10,849,631,305.34 | 10,997,714,163.98 |  | 148,082,858.64
Dec 24 |  |  |  |
Treasury bills | 7,675,715 | 7,120,833 | -554,882 |
| 5,452,061 | 5,542,225 |  | 90,164
Loans and advances to credit institutions | 636,337 | 622,244 | -14,092 |
| 1,512,952 | 1,534,130 |  | 21,178
Loans and advances to customers | 131,436 | 129,938 | -1,498 |
| 416,122 | 417,764 |  | 1,642
Debt securities | 1,969,332 | 1,865,876 | -103,456 |
| 2,086,222 | 2,125,321 |  | 39,099
Shares and other variable-yield securities | 532,975 | 532,914 | -61 |
| 866,514 | 907,313 |  | 40,799
Financial instruments carried as fixed assets | 10,945,794 | 10,271,806 | -673,989 |
| 10,333,872 | 10,526,753 |  | 192,881

381
Fixed assets were not written down because the impairments are not expected to be permanent. Analyses in this regard showed
that there were no credit rating related impairments in the reporting period. Interest induced impairments are not realized because
there is an ability and intention to hold these securities until maturity. Fair value is the amount that could be obtained in an active
market through the sale of a financial instrument, or correspondingly the amount that would be payable for its purchase. If market
prices were available, these are used to determine fair value. In the absence of market prices, valuation models, in particular the
present value method, were used.
27. Market value for securities in inactive markets
Erste Group Bank AG calculates theoretical prices for securities in an inactive market. A market is assumed to be inactive when
prices for the relevant securities are formed only sporadically, there is only small-volume trading or no current prices are available.
Of securities traded on stock exchanges and valued at market price, theoretical prices were used for the following volumes. The
values shown in the following tables do not include contractual accrued interest.

in EUR or in EUR thousand | Dec 25 | Dec 24
Carrying amount of securities not marked on the basis of market prices | 684,623,549.92 | 781,107
Fair value on the basis of the price in the inactive market | 684,987,240.33 | 759,656
Difference | 363,690.41 | -21,451

The last available rates are used as rates for inactive markets. The decrease in the difference compared to the prior year is
predominantly attributable to the liquidation of a zero‑coupon bond. In 2025, this instrument only contributed EUR 12,638.95 to
the difference (prior year: EUR 22,134 thousand).
28. Reclassification in securities positions
There were no reclassifications of securities positions to current financial assets in 2025.
29. Hedging transactions
Erste Group Bank AG uses interest rate swaps, cross currency swaps, credit derivatives and options in order to hedge against the
market risk (interest-change risk and price risk) from balance sheet assets (bonds) with a notional of EUR 3,984,489,361.70 (prior
year: EUR 4,379,160 thousand) and liabilities (own issues) with a notional of EUR 30,399,306,527.47 (prior year: EUR 28,901,062
thousand) on an individual basis.
Derivatives are used as specified by the hedging strategy in accordance with the Commercial Code (UGB) to hedge the fair value or
the variable future cash flow of underlying transactions and thereby reducing the interest rate risk of Erste Group Bank AG to the
level defined under the interest risk strategy.
Erste Group Bank AG uses interest rate swaps to hedge the interest rate risk of the variable future cash flows from the ECB deposit
facility with a notional of EUR 1,800,000,000.00 (prior year: EUR 1,500,000 thousand).
A discrepancy between the notional of the hedging instrument and the hedged item results from the different treatment of
transactions with notional in foreign currency and the volume determination of structured transactions.
382

in EUR | Dec 25 | Dec 24 | Change
Fair value hedge |  |  |
Positive market value fair value hedge | 562,270,506.29 | 612,018,992.15 | -49,748,485.86
Negative market value fair value hedge | -922,517,536.84 | -1,063,946,379.70 | 141,428,842.86
Cash flow hedge |  |  |
Positive market value cash flow hedge | 4,029,261.24 | 5,765,145.19 | -1,735,883.95
Negative market value cash flow hedge | -876,804.56 | 0.00 | -876,804.56
Total |  |  |
Total positive market values | 566,299,767.53 | 617,784,137.34 | -51,484,369.81
Total negative market values | -923,394,341.40 | -1,063,946,379.70 | 140,552,038.30

The table above represents the proportion of the fair value (Dirty Price) of derivatives in a hedging relationship that were not
recognized in the balance sheet (prior to netting). As of 31 December 2025, fair value hedges with maturity up to 2053 and cash
flow hedges with maturity up to 2027 were held.
The Commercial Code hedging efficiency measurement is carried out for Erste Group Bank AG for the year 2025 in form of a
critical term match and for cash flow hedges within the framework of a regression test, prospectively and retrospectivly.
30. Consideration of CVA/DVA in derivative valuation
Credit value adjustments (CVA) for counterparty default risks and debt value adjustments (DVA) for own credit risk are applied for
all OTC derivatives. No CVA was recognized for counterparties fully backed by credit support annex – agreements (CSA). The CVA
adjustment depends on the expected positive exposure and the counterparty’s credit worthiness. DVA is determined by the
expected negative exposure and by the credit quality of Erste Group Bank AG. The calculation of expected exposure is based on a
model that relies on replicated options and on a Monte Carlo simulation, respectively, the probability of default is based on market
information.
For portfolios that are marked-to-market, a CVA in the amount of EUR 5,314,370.33 (prior year: EUR 8,355 thousand) and a DVA
EUR 9,143,152.97 (prior year: EUR 7,004 thousand), were respectively recognized. For the banking book portfolio as in prior years,
no CVA (prior year: EUR 0 thousand) was recognized, since hedging transactions are carried out via a central counterparty
whereby trades are collateralized.
31. Risk provisions
The development of risk provisions for loans and advances and similar financial instruments to credit institutions, for loans and
advances and similar financial instruments to customers as well as for contingent liabilities, is as follows:

in EUR or in EUR thousand | 1-12 25 | 1-12 24
Opening balance | 232,199,566.64 | 238,088
Allocations / Releases (-) | 12,662,067.60 | 15,199
Use | -75,070,448.64 | -22,062
Reclassification |  | 0
Exchange rate changes | -1,077,271.59 | 975
Closing balance | 168,713,914.01 | 232,200

32. Contingent liabilities
Within the off-balance item contingent liabilities in the amount of EUR 13,214,805,914.56 (prior year: EUR 12,627,167 thousand)
necessary provisions were deducted. The largest part of the amount totalling EUR 7,142,746,894.06 (prior year: EUR 6,503,158
thousand) relates to liabilities and guarantees from collateralization. This amount also includes comfort letters in the amount of
EUR 332,091,997.60 (prior year: EUR 335,052 thousand). A large part of this sum totaling EUR 239,685,743.75 (prior year:
EUR 242,404 thousand) was issued by Erste Group Bank AG in 2015 for affiliated companies in case they do not meet their rent
payment obligations for the Erste Campus. Moreover, this item also includes credit derivatives in the amount of EUR 8,000,000.00
(prior year: EUR 59,950 thousand).
383
In this chapter the contingent liabilities of the cross-guarantee scheme are included. The contingent liability of the cross-guarantee
scheme relates to the reciprocal obligation of the liable members to provide financial support for savings banks in financial
difficulties or, in the event of distress, to ensure the timely fulfilment of certain monetary claims of customers against another liable
member. A case of distress is the opening of bankruptcy proceedings against a member of the cross-guarantee system. With regard
to the abolition of the extended deposit guarantee of the cross-guarantee system, please refer to chapter General information.
33. Credit risk
There is credit risk in the amount of EUR 21,403,585,015.16 (prior year: EUR 19,781,994 thousand) primarily for loan and
guarantee commitments which have not yet been exercised. These amounts are net of the appropriate provisions.
34. Gross income – regional breakdown
Gross income of Erste Group Bank AG was broken down as follows (according to the location of branches):

| 1-12 25 | 1-12 24
in EUR or in EUR thousand | Domestic | Abroad | Total | Domestic | Abroad | Total
Interest and similar income | 5,436,038,446.08 | 1,171,331,775.72 | 6,607,370,221.80 | 7,123,529 | 1,631,024 | 8,754,553
Income from securities and participating interests | 2,706,130,404.79 | 0.00 | 2,706,130,404.79 | 1,978,455 | 0 | 1,978,455
Fee and commission income | 268,830,055.00 | 777.04 | 268,830,832.04 | 234,150 | 9 | 234,159
Net profit or loss on financial operations | 81,184,612.69 | -200,760,915.65 | -119,576,302.96 | 68,895 | -33,458 | 35,436
Other operating income | 139,929,076.04 | 666,169.00 | 140,595,245.04 | 163,082 | 4,050 | 167,132
Gross income | 8,632,112,594.60 | 971,237,806.11 | 9,603,350,400.71 | 9,568,111 | 1,601,625 | 11,169,736

35. Income from participating interests and shares in affiliated companies
The balance sheet item income from participating interests and shares in affiliated companies includes EUR 649,517,568.55 (prior
year: EUR 477,287 thousand) and the balance sheet item extraordinary income includes EUR 4,198,599.95 (prior year: EUR 1,000
thousand) from group members, which are subsidiaries be longing to the fiscal group of Erste Group Bank AG within the
framework of the group taxation regulations which came into power in 2005.
36. Other operating income
Other operating income of EUR 140,595,245.04 (prior year: EUR 167,132 thousand) includes income from personnel and other
administrative expenses reimbursed to group members in the amount of EUR 100,225,737.95 (prior year: EUR 95,061 thousand),
rental income in the amount of EUR 11,830,675.62 (prior year: EUR 10,936 thousand), income from the release of pension
provisions in the amount of EUR 9,337,163.45 (prior year: EUR 6,044 thousand) and fees for early prepaid loans in the amount
EUR 1,533,695.55 (prior year: EUR 45,310 thousand).
37. Personnel expenses
In terms of personnel expenses, the position expenses for severance payments and payments to severance-payment funds included
expenses for severance payments in the amount of EUR 1,803,040.13 (prior year: EUR 1,791 thousand).
Expenses for pensions are accounted for as follows:
_ For defined pension payments in the amount of EUR 9,337,163.45 as income from the release of pension provisions included in
the other operating income position (prior year: EUR 6,044 thousand ) and interest expenses in the amount of EUR 7,073,367.19
(prior year: 7,574 thousand) in the position interest and similiar expense.
_ Current pension fund contributions in the amount of EUR 9,205,293.22 (prior year: EUR 10,305 thousand) also as personnel
costs.
384
38. Other administrative expenses
Other administrative expenses include fees paid for auditing and tax advisory services. The table below lists the fees or charges,
including value added tax, charged by the external auditors (Sparkassen-Prüfungsverband and PwC Wirtschaftsprüfung GmbH):

in EUR or in EUR thousand | 1-12 25 | 1-12 24
Fees charged for auditing the financial statements | 4,497,185.84 | 4,132
Fees charged for audit-related services | 2,219,321.89 | 2,516
Fees charged for tax advisory services | 0.00 | 0
Fees charged for other services | 167,587.37 | 387
Total | 6,884,095.10 | 7,036

As statutory auditors, Sparkassen-Prüfungsverband (auditing agency) provided auditing services for affiliated companies of Erste
Group Bank AG in the amount of EUR 7,404,196.00 (prior year: EUR 7,725 thousand). Other advisory services were charged to
other affiliated companies in the amount of EUR 175,143.00 (prior year: EUR 139 thousand). The amount charged for other services
for affiliated companies came up to EUR 36,106.00 (prior year: EUR 48 thousand).
PwC Wirtschaftsprüfung GmbH provided auditing services for affiliated companies of Erste Group Bank AG in the amount of EUR
839,329.00 (prior year: EUR 734 thousand). Other advisory services were charged to other affiliated companies in the amount of
EUR 280,740.00 (prior year: EUR 268 thousand).
39. Other operating expenses
Other operating expenses in the amount of EUR 19,943,280.21 (prior year: EUR 31,713 thousand) mainly comprise expenses for
credit derivatives to hedge loans of Erste Group (securitizations at the group level, which are presented as derivatives at the
individual level, since the hedged assets are not on the balance sheet of Erste Group Bank AG) in the amount of EUR 10,289,643.98
(previous year: EUR 0 t housand) and expenses for the Operational Risk Insurance Program in the amount of EUR 6,048,321.78
(prior year: EUR 6,186 thousan d). In the prior year also expenses for the provision for interbank VAT exemption in the amount of
EUR 14,519 thousand were included.
40. Value adjustments as well as results from purchases and sales in respect of
participating interests and shares in affiliated Companies
In 2025, the balance from value adjustments as well as results from sales of participating interests and shares in affiliated
companie s results in a write-up of EUR 367,414,387.72 (prior year: EUR 575,211 thousand). This amount is largely attributable to
the write-up of Banca Comercială Română S.A. in the amount of EUR 353,400,000.00 (prior year: EUR 289,700 thousand) and of
Prva stavebna sporitelna, a.s. in the amount of EUR 22,400,000.00 (prior year: EUR 2,100 thousand). In the prior year also write-up
of Erste Bank Hungar y Zrt. of EUR 267,384 thousand as well as of Erste Group Immorent GmbH of EUR 25,600 thousand were
included.
For group members (subsidiaries that are considered a tax group with Erste Group Bank AG under the group taxation regulations
of 2005) write-down requirements in the amount of EUR 10,862,693.00 (prior year: EUR 13,241 thousand) and write-ups
amounting to EUR 4,534,136.60 (prior year: EUR 31,722 thousand) are included in this item. As in the prior year, no group
members were sold affecting results in the reporting year.
41. Taxes on profit or loss
The item taxes on profit or loss shows expense amounting to EUR 11,963,482.46 (prior year: EUR 2,494 thousand). This includes
income in the amount of EUR 180,164,730.93 (prior year: EUR 196,158 thousand) from the current tax allocation, an expense of
EUR 1,594,851.56 (prior year: income EUR 3,967 thousand) from the retroactive accounting of prior years according to section 9
Corporate Tax Act on group taxation, as well as an expense of EUR 14,691,279.26 (prior year: EUR 159,790 thousand) from deferred
tax assets. For current corporate income tax to Austrian tax authority, an expense amounting to EUR 157,457,100.57 (prior year:
EUR 52,687 thousand) was recorded, as well as an aperiodic corporate income tax expense of EUR 10,231,460.68 (prior year:
income EUR 18,894 thousand).
385
Since 2005, Erste Group Bank AG and its main domestic subsidiaries have formed a tax group in accordance with section 9
Corporate Tax Act, with Erste Group Bank AG as parent company of the group. Group and tax equalisation agreements were
concluded with all affiliated companies. Under these agreements, affiliated companies allocate amounts equivalent to the
corporation tax on taxable profits to Erste Group Bank AG. Since tax losses from prior years are recorded and offset against their
current tax liability by the affiliated companies themselves, there is no obligation to make tax allocation payments to Erste Group
Bank AG. Moreover, Erste Group Bank AG undertakes to make compensatory payments for any tax losses utilized up to that point
to any affiliated company leaving the Group.
Foreign income taxes and other foreign income related taxes are expenses of EUR 4,797,987.41 (prior year: EUR 4,219 thousand).
The company is fully consolidated in the consolidated financial statements of Erste Group and is therefore subject to the provisions
of the MinBestG. In accordance with Section 198 Paragraph 10 Clause 3 Item 4 of the Austrian Commercial Code (UGB), no
deferred taxes resulting from the application of the MinBestG or a comparable foreign law were recognized. The MinBestG
increased the company's current income tax expense by EUR 2,622,548.75 (prior year: EUR 1,705 thousand). Group companies
from Serbia and Bosnia-Herzegovina have not achieved the required minimum taxation of 15%. These countries have not yet
passed a national minimum taxation law, so Austria, as the headquarters of the parent company, is subject to taxation in this
regard. The tax expense is proportionally distributed to the relevant companies. Future tax burdens from the MinBestG or
comparable foreign laws depend in particular on the earnings situation of foreign group companies.
42. Other taxes
The balance sheet item other taxes not shown under item 18 in the amount of EUR 92,360,005.99 (prior year: EUR 26,775
thousand) includes mainly the bank levy in the amount of EUR 91,990,608.26 (prior year: EUR 26,686 thousand).
43. Branches on a consolidated basis

Business Areas | Commercial lending to foreign banks, leasing companies and sovereign debtors | Institutional sales-business
Branches | New York | Hong Kong | Berlin, Stuttgart
Country of domicile | USA | China | Germany
Dec 25 |  |  |
Net interest income in EUR | 40,198,691.34 | -34,353,848.56 | -11,124.68
Operating result in EUR | 40,111,727.67 | -31,245,966.07 | 8,092.14
Headcount / as of reporting date | 23 | 24 | 13
Profit or loss from ordinary activities in EUR | 27,628,780.74 | -39,483,131.23 | -4,661,147.23
Taxes on income in EUR | -4,065,070.39 | -1,219,568.14 | -145,696.28
Public benefits received | none | none | none
Dec 24 |  |  |
Net interest income in EUR | 70,562 | -15,308 | -16
Operating result in EUR | 74,224 | -12,072 | -16
Headcount / as of reporting date | 23 | 24 | 13
Profit or loss from ordinary activities in EUR | 62,988 | -19,875 | -4,356
Taxes on income in EUR | -1,837 | -2,609 | -34
Public benefits received | none | none | none

The consolidated negative result before tax of Hong Kong branch is due to internal trades with Vienna headquarter for the purpose
of refinancing and hedging. These trades are to be eliminated for the presentation of the table. The overall unconsolidated branch
result is positive.
44. Return on assets
Profit for the year after tax before changes in reserves expressed in proportion to the average total assets was at balance sheet date
2.6% in 2025 (prior year: 2.3%).
386
45. Events after balance sheet date
In May 2025, Erste Group Bank AG and Banco Santander S.A. entered into an agreement under which Erste Group Bank AG
acquired a 49% stake in Santander Bank Polska Group S.A. (“Santander Bank Polska”), a publicly listed universal bank operating in
Poland, and a 50% stake in Santander Towarzystwo Funduszy Inwestycyjnych S.A. (“Santander TFI”), an asset management
company. The transaction was closed on 9 January 2026, the acquisition date, when Erste Group Bank AG obtained control of the
companies. At the extraordinary general assembly of Santander Bank Polska held on 22 January 2026, a resolution to rename
Santander Bank Polska to “Erste Bank Polska S.A.” was unanimously approved. The rebranding will also apply to Santander Bank
Polska group companies that have "Santander" in their name.
The acquisition of Santander Bank Polska is consistent with Erste Group Bank AG’s strategic objective of strengthening its presence
in Central and Eastern Europe and expanding its retail and corporate banking operations in Poland, one of the largest and fastest
growing banking markets in the EU. Santander Bank Polska is the third-largest bank in Poland by assets, with market share of 8%
(based on transaction perimeter as of December 2024), and is also one of the most profitable banks in the country. It offers a full
range of commercial banking products to retail, SME and corporate clients. Santander TFI is an asset management company with
EUR 6 billion in assets under management as of December 2024.
Erste Group Bank AG considers that the 49.00% stake in Santander Bank Polska constitutes a controlling interest, despite not
representing a majority of the voting rights. Erste Bank Polska S.A. and Santander TFI will be reported under item 8. Shares in
affiliated companies, in accordance with the provisions of the Austrian Commercial Code (UGB) and the Austrian Banking Act
(BWG).
The consideration amounts to EUR 7,035 million paid in cash. No equity-settled consideration arrangements exist. The amount
consists of EUR 6,844 million paid for Santander Bank Polska and EUR 171 million paid for Santander TFI. The remaining EUR 20
million relates to post-tax effect of the acquisition price increase in connection with the sale of shares in Santander Consumer Bank
S.A. (subsidiary of Santander Bank Polska) held by Santander Bank Polska S.A. prior to the finalisation of the transaction. The
consideration of EUR 20 million will be paid in cash in the first quarter of 2026 in accordance with the contract, while the
remaining consideration of EUR 7,015 million was paid on the acquisition date.
387
BOARD MEMBERS AND EMPLOYEES
The average number of employees at Erste Group Bank AG (weighted, excluding employees on leave and Management Board
members) was 2,025 during the financial year 2025 (previous year: 2,006).
In 2025, 84 employees (previous year: 109) worked at other companies against reimbursement of expenses. The reimbursement
costs of EUR 15,036,176.11 (previous year: EUR 25,822 thousand) are included in other operating income.
Overview remuneration of Management and Supervisory Board members
The following table displays the total remuneration of the Management Board and the Supervisory Board. The expenses were
recognised on an accrued basis. The amounts indicated correspond to the expected payments on the balance sheet date and can
deviate from those amounts, which are actually paid out.
The distribution of remuneration to active members of the Management and Supervisory Board is as follows:

| 1-12 25 | 1-12 24
in EUR or in EUR thousand | Management Board | Supervisory Board | Total | Management Board | Supervisory Board | Total
Short-term benefits | 7,940,058.09 | 2,257,212.33 | 10,197,270.42 | 8,251 | 2,157 | 10,409
Other long-term benefits | 1,114,191.84 | 0.00 | 1,114,191.84 | 1,848 | 0 | 1,848
Post-employment benefits | 1,356,971.01 | 0.00 | 1,356,971.01 | 1,354 | 0 | 1,354
Share-based payments | 2,876,709.80 | 0.00 | 2,876,709.80 | 4,588 | 0 | 4,588
Total | 13,287,930.74 | 2,257,212.33 | 15,545,143.07 | 16,042 | 2,157 | 18,199

Neither in 2025 nor in the previous year, Erste Group Bank AG granted loans directly to members of the board or Supervisory
Board. Remuneration paid to board members, who left during this financial year, is reported as active board members. The
members of the Management Board of Erste Group Bank AG were granted a total compensation of 0.4% (previous year: 0.5%)
related to Erste Group’s total personnel expenses for their activities in the financial year. Total remuneration of EUR 1,978,581.42
(previous year: EUR 2,811 thousand) was granted to former board members and their surviving dependents in the financial year
2025 and 30,684 (previous year: 40,607) share equivalents were awarded.
SHORT-TERM BENEFITS
This category includes salaries, payments in kind, social security contributions and other short-term benefits. These also include
variable remuneration components, which are paid in cash within a year. The Supervisory Board remuneration indicated includes
Supervisory Board remuneration, attendance fees and remuneration for serving on the boards of affiliated companies.
POST-EMPLOYMENT BENEFITS
The members of the Management Board participate in the defined contribution pension plan of Erste Group Bank AG according to
the same principles as the employees of the Group (see Notes 16. Provisions). Termination benefits primarily include contributions
paid to pension funds and employee provision funds.
OTHER LONG-TERM BENEFITS
These primarily include variable remuneration components, which are paid in cash only after a year and distributed over several
years. Moreover, expenses for provisions for jubilee benefits (see Notes 16. Provisions) are presented in this category.
SHARE-BASED PAYMENTS
This category includes expenses for share-based variable compensation components.
388
Supervisory board members
The Supervisory Board consists of at least three and a maximum of fourteen members elected in the annual general meeting.
Unless the annual general meeting has determined a shorter term of the mandate for individual, several or all Supervisory Board
members on the occasion of their appointment, the term of office of the members of the Supervisory Board ends at the close of the
annual general meeting that resolves on the approvals of their actions for the fourth financial business year following their election;
re-election is permitted. In addition, membership of the Supervisory Board ceases upon death, revocation, resignation or in the
event of a defined impediment. Revocation requires a majority of three quarters of valid votes cast and a majority of three-quarters
of the registered capital represented at the time of the resolution.
BREAKDOWN OF SUPERVISORY BOARD REMUNERATION
Pursuant to the decision passed at the annual general meeting of 22. May 2024, the Supervisory Board adopted in its constituent
meeting the following yearly remuneration structure for the financial year 2023 and the following years:

in EUR |  |  | Allowance per person
Chairman |  |  | 240,000.00
1st Vice Chairman |  |  | 110,000.00
2nd Vice Chairman |  |  | 90,000.00
Member |  |  | 75,000.00

In addition, the chairmen of the risk and the audit committee each receive further annual compensation of EUR 24,000.00, the
chairman of the IT committee of EUR 18,000.00 and the chairmen of the remuneration, strategy and sustainability committee each
of EUR 15,000.00. The chairman of the nomination committee receives an annual compensation of EUR 12,000.00. If there is no
personal identity between the financial expert and the chairperson of the audit committee, the former also receives an additional
annual remuneration of EUR 20,000.00.
The additional attendance fee to be paid to the members of the Supervisory Board was set at EUR 1,200.00 per meeting of the
Supervisory Board or one of its committees.
Erste Group Bank AG did not conclude other legal transactions with its members of the Supervisory Board.
Transactions and shares held by Management Board and Supervisory Board members
The tables below provide in formation on Erste Group Bank AG shares held by Management Board and Supervisory Board
members as well as transactions carried out with Erste Group Bank AG shares (numbers of shares). Erste Group Bank AG shares
held by Management Board and Supervisory Board members, whose office term began or ended during the financial year, as at the
date of inception or termination of their term in office were recognised as additions or disposals.

Members of the Management Board | Dec 24 | Additions | Disposals | Dec 25
Peter Bosek (Chairman) | 10,351 | 1,097 |  | 11,448
Ingo Bleier | 11,574 | 3,638 |  | 15,212
Stefan Dörfler | 15,215 | 3,695 |  | 18,910
Alexandra Habeler-Drabek | 11,922 | 3,583 |  | 15,505
Maurizio Poletto | 8,187 | 3,583 |  | 11,770

Supervisory Board members did not receive any options on Erste Group Bank AG shares for exercising their mandate.
389

Members of the Supervisory Board | Dec 24 | Additions | Disposals | Dec 25
Christine Catasta | 0 |  |  | 0
Henrietta Egerth-Stadlhuber | 0 |  |  | 0
Alois Flatz | 0 |  |  | 0
Martin Grießer | 222 | 29 |  | 251
Markus Haag | 426 | 24 |  | 450
Gottfried Haber (since 21.05.2025) | 0 |  |  | 0
Regina Haberhauer | 396 | 24 |  | 420
Jakob Hofstädter | 701 | 63 |  | 764
Marion Khüny | 0 |  |  | 0
Mariana Kühnel (until 24.03.2025) | 0 |  |  | 0
Caroline Kuhnert | 0 |  |  | 0
Elisabeth Krainer-Senger-Weiss | 1,592 | 3,183 |  | 4,775
Barbara Pichler | 742 | 39 |  | 781
Friedrich Rödler (until 21.05.2025) | 3,802 |  | 3,802 | 0
Friedrich Santner | 0 |  |  | 0
Michael Schuster | 30 |  |  | 30
Walter Schuster | 0 |  |  | 0
Gabriele Semmelrock-Werzer (since 21.05.2025) | 0 | 42 |  | 42
Christiane Tusek | 0 |  |  | 0
Karin Zeisel | 122 | 29 |  | 151

For further details on shares held by Supervisory Board refer to the published “Director’s Dealings” of Erste Group Bank AG.
Persons related to Management Board or Supervisory Board members held 1,696 pieces (previous year: 1,690) of Erste Group Bank
AG shares as of 31 December 2025.
Share-based payments
The total expense recognised during the reporting period arising from share-based payment transactions amounts to EUR
19,859,879.31 (previous year: EUR 18,555 thousand), thereof EUR 3,843,960.63 (previous year: EUR 5,939 thousand) relates to
equity-settled sharebased payment transactions. At the end of the reporting period, the provision arising from share-based payment
transactions amounts to EUR 34,970,323.92 (previous year: EUR 26,387 thousand). The intrinsic value of the provision is
EUR 40,065,836.46 (previous year: EUR 38,421 thousand).
SHARE-BASED PAYMENT FOR THE MANAGEMENT BOARD OF ERSTE GROUP BANK AG
The share-based remuneration plan for the executive board of Erste Group Bank AG comprises short-term and long-term variable
remuneration components. The total amount of variable compensation is determined in the following year by a resolution of the
Supervisory Board.
Upfront share-based remuneration: 20% of the bonus will be converted into shares on the date of this Supervisory Board
resolution and is transferred to the participant’s securities deposit after one year.
Deferred share-based remuneration: 30% of the bonus is converted into performance share units (PSUs) on the day of the
Supervisory Board resolution using the average share price of the last 30 trading days (Long Term Incentive Plan). A PSU
represents an unsecured, conditional right to receive shares of Erste Group Bank AG in the future. In the following five years, the
initial number of PSUs is adjusted in a range from 120% to 0% to the group’s performance based on performance criteria, which will
be determined by the Supervisory Board. The final number of PSUs corresponds to the number of shares, which is transferred to
the participant’s securities deposit after a retention period of another year.
The shares and PSUs granted are equity-settled share-based payments that vest by the end of the performance year. The share-
based payments are recognized at the fair value of the shares or PSUs at the grant date, i.e., the date when the parties on both sides
have a common understanding of all the terms and conditions. The determination of the grant date requires the judgment of all
circumstances. As the Supervisory Board has significant discretionary powers in connection with the assessment of performance in
the performance year, the grant date is the date of the Supervisory Board's resolution on the bonus awarded for the past
performance year.
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For the performance year 2025, it is expected that 9,791 shares and 14,687 PSUs (previous year: 20,630 shares and 30,945 PSUs) will
be granted to participants. The fair value of PSUs on the measurement date is calculated based on a Monte Carlo simulation model
considering the achievement level of Erste Group performance over the next five years and the share price of Erste Group Bank AG.
The estimated fair value on the balance sheet date is EUR 2,390,784.26 (previous year: EUR 2,943 thousand). In 2025 personnel
expenses of EUR 2,132,712.32 (previous year: EUR 3,547 thousand) and a corresponding reserve for share-based remuneration was
recognised.
Phantom shares program
Erste Group Bank AG awards selected employees every year a bonus for services rendered in the past year (vesting period). If the
individual bonus exceeds a certain limit, the final payout amount of at least 25% depends on the development of the average,
volume-weighted, daily price of Erste Group shares in subsequent years (phantom share program). The share equivalents (phantom
shares) are divided into several tranches, which differ in the duration of the observation period for the development of the Erste
Group share price.
The phantom share program meets the criteria for cash-settled share-based payments in accordance with AFRAC 3.
The estimated fair value of variable compensation for share equivalents is recognised in profit or loss. The provision for stock
equivalents that have not yet been paid out is continuously measured at fair value until payment is made. Fair value changes and
changes of the final allocation in subsequent years are recognised in profit or loss. The fair values of the share equivalents for the
respective payout year are determined using an option pricing model (Black-Scholes model). The main parameters are the share
price of the Erste Group Bank AG on the balance sheet date and the dividend payments expected until payment.
For 2025 it is expected that 56,833 (previous year: 90,987) share equivalents with a fair value of EUR 5,563,068.99 (previous year:
EUR 5,000 thousand) will be granted to eligible employees. The total expense recognised in the reporting period for the phantom
share program amounts to EUR 16,015,918.68 (previous year: EUR 12,616 thousand).
EMPLOYEE SHARE PROGRAMS
The WeShare by Erste Group-Participation program and the WeShare by Erste Group-Investment Plus program are equity-settled
sharebased payment transactions. Both programs are offered to employees of Erste Group provided that specific requirements (e.g.
capital and liquidity requirements, payment of dividends, ECB approval) are met.
Under the WeShare by Erste Group-Investment Plus program all employees, who had been employed by an entity of the Erste
Group, from March/April 2025 until June 2025 could voluntarily invest in Erste Group shares and receive free shares depending on
the amount of their personal investment. The WeShare by Erste Group-Investment Plus program was settled in June 2025. The
number of free shares, which were granted under this program for the reporting period to employees of Erste Group Bank AG, is
20,619 (previous year: 35,696). Personnel expenses in the amount of EUR 1,395,938.05 (previous year: EUR 1,596 thousand) were
recorded.
Under the WeShare by Erste Group-Participation program all employees, who have been employed by an entity of the Erste Group
for at least six months in year 2025 and are still employed until the transfer of the shares to the employees in June 2026 are entitled
to receive shares in an equivalent amount of EUR 350. The expected number of free shares, which are granted under this program
for the period, is 7,913 (previous year: 34,696). Based on the number of entitled employees, personnel expenses in the amount of
EUR 315,310.26 (previous year: EUR 796 thousand) were recorded and a corresponding reserve in retained earnings was created.
Severance payments and pensions
The income for severance payments and pensions for members of the Management Board and managers amounted to EUR
777,381.33 (previous year: income EUR 5,228 thousand). Expenses for severance payments and pensions for other employees
amounted to EUR 6,250,991.88 (previous year: EUR 14,837 thousand). Expenses for surviving dependents and pensioners are
included in the reported amounts. In accordance with section 239 (2) Commercial Code, statements regarding members of the
Management and Supervisory Board are disclosed separately in section Management Bodies of Erste Group Bank AG.
APPROPRIATION OF PROFIT
At the annual general meeting, the board will suggest that a dividend in the amount of EUR 0.75 per share (prior year: EUR 3.00
per share) be paid to the shareholders from the total net retained earnings. The amount blocked according to section 235 (1)
Commercial Code is EUR 0.00 (prior year: EUR 0 thousand).
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MANAGEMENT BODIES OF ERSTE GROUP BANK AG IN 2025
Supervisory Board

Position | Name | Year of birth | Occupation | Date of initial appointment | Expiration date of current period
Chair (since May 21, 2025) | Gottfried Haber | 1972 | University professor | 21 May 2025 | AGM 2029
Chair (until May 21, 2025) | Friedrich Rödler | 1950 | Auditor and tax advisor | 4 May 2004 | AGM 2025
1st Vice Chair | Elisabeth Krainer-Senger-Weiss | 1972 | Lawyer | 21 May 2014 | AGM 2027
2nd Vice Chair | Christine Catasta | 1958 | Auditor and tax advisor | 1 July 2022 | AGM 2026
Member | Henrietta Egerth-Stadlhuber | 1971 | Managing Director | 26 June 2019 | AGM 2026
Member | Alois Flatz | 1966 | Investor | 18 May 2022 | AGM 2029
Member | Marion Khüny | 1969 | Consultant | 17 May 2017 | AGM 2026
Member | Mariana Kühnel | 1983 | Deputy secretary general, Austrian Federal Economic Chamber | 18 May 2022 | 24 March 2025
Member | Caroline Kuhnert | 1963 | Executive Board Member (Banking), ret. | 1 August 2024 | AGM 2027
Member | Friedrich Santner | 1960 | Entrepreneur | 10 November 2020 | AGM 2027
Member | Michael Schuster | 1980 | Investor | 19 May 2021 | AGM 2028
Member | Walter Schuster | 1955 | Consultant | 22 May 2024 | AGM 2027
Member | Gabriele Semmelrock-Werzer | 1958 | Executive Board Member (Banking), ret. | 21 May 2025 | AGM 2029
Member | Christiane Tusek | 1975 | Vice director of finance and entrepreneurship | 12 May 2023 | AGM 2026
Delegated by the employees' council |  |  |  |
Member | Martin Grießer | 1969 | - | 26 June 2019 | until further notice
Member | Markus Haag | 1980 | - | 21 November 2011 | until further notice
Member | Regina Haberhauer | 1965 | - | 12 May 2015 | until further notice
Member | Jakob Hofstädter | 1962 | - | 8 May 2024 | until further notice
Member | Barbara Pichler | 1969 | - | 9 August 2008 | until further notice
Member | Karin Zeisel | 1961 | - | 9 August 2008 | until further notice

Representatives of the supervisory authority

Name | Position
Bartsch Wolfgang | State Commissioner
Kremser Michael | Deputy State Commissioner
BINDER GRÖSSWANG Rechtsanwälte GmbH | Deputy trustee under the Mortgage Bank Act (Pfandbriefgesetz)

Management Board

Management Board Members | Year of birth | Date of initial appointment | Expiration date of current period
Peter Bosek (Chairman) | 1968 | 1. July 2024 | 30. June 2027
Ingo Bleier | 1970 | 1. July 2019 | 30. June 2026
Stefan Dörfler | 1971 | 1. July 2019 | 31. December 2027
Alexandra Habeler-Drabek | 1970 | 1. July 2019 | 31. December 2027
Maurizio Poletto | 1973 | 1. January 2021 | 31. December 2027

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Vienna, 25. February 2026
Management Board
Peter Bosek e.h.
Chairman
Ingo Bleier e.h.Stefan Dörfler e.h.
Member Member
Alexandra Habeler-Drabek e.h.Maurizio Poletto e.h.
Member Member
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Management Report
ECONOMIC ENVIRONMENT AND BUSINESS DEVELOPMENT
Economic environment
From an economic point of view 2025 was mainly characterised by higher trade barriers, elevated policy uncertainty, stricter
immigration policies, rising AI (Artificial Intelligence)-related investments and continued regional conflicts. Inflation levels
declined further during the year although with significant regional divergence. On the monetary condition side, most of the world’s
major central banks continued to gradually loosen their respective policy stance and further cut their policy rates. The global
economy proved more resilient than expected which was mainly due to front loaded imports in the first half of the year and
reorganised supply chains to redirect trade flows. Economic growth rates varied significantly among advanced and emerging
economies with the latter significantly supported by China and India. Overall, the global economy achieved a growth rate of 3.3%.
Among advanced economies, the United States again outperformed the Euro Zone and Japan. While higher imports tariffs,
measures to curb immigration, the record long government shutdown, and policy uncertainty negatively impacted economic
growth in the US, these effects were counterbalanced by solid consumption, an accommodative fiscal and monetary policy as well
as strong AI-related investments. Inflation bottomed out in April 2025 then rising again at moderate levels. In response to the
weakening labour market the US Federal Reserve (Fed) resumed monetary policy easing and decreased the federal funds rate in
three steps, the first one in September, from 4.5% to 3.75%. The Fed also announced at its December meeting that it would start to
buy short-term government bonds. The initial amount was set at a monthly rate of USD 40 billion. The US government deficit
slightly decreased. Overall, the US economy grew by 2.1% in 2025.
In Europe economic growth was supported by resilient labour markets, decreasing inflation, and a more favourable interest rate
environment. In addition, policy support from the Recovery and Resilience Facility and other EU funding cushioned the effect of
tighter fiscal policy in several EU member states. Strong demand for services was supportive and important tourism destinations
such as Croatia and Spain benefited. Spain in particular recorded well above-average growth benefiting from successful reforms
and the country’s strong service sector. Germany, Europe’s largest economy, on the other hand, remained relatively weak. The euro
appreciated against the US dollar and other major currencies. Average inflation in the euro area hovered around the 2% target of
the European Central Bank (ECB), which cut the key policy rate from 3.00% to 2.00% in four steps during the year. The
unemployment rate stabilised at low levels in most European countries. Overall, the growth rate of the European Union stood at
1.5% in 2025.
Austria’s economic performance was slightly better than originally expected and after two years of recession the country’s economy
resumed with modest growth in 2025. Economic growth was mainly driven by increased consumption, government spending, and a
stabilisation of investment activity. Private consumption growth was supported by real income gains of the previous years. Exports,
on the other hand, dampened economic growth particularly against the backdrop of the weak performance of Germany, Austria’s
main trading partner. Non-residential construction recovered in 2025. Industrial production showed signs of recovery. Tourism
again performed well and contributed to economic growth. The agricultural sector, although not a major contributor to GDP, also
performed well. Overall, the Austrian economy underperformed the European Union average and grew by 0.4% in 2025.
Inflation increased during the year with average inflation in Austria amounting to 3.6%, above the euro zone average of 2.1%.
Service and energy prices remained among the main inflation drivers. Food prices and industrial goods prices also came in higher
than expected. Austria’s labour market remained relatively stable throughout the year with the unemployment rate increasing
slightly to 5.5%. Despite the fiscal consolidation measures adopted for the year the general government deficit increased further.
The general government debt in relation to GDP increased.
Central and Eastern European economies experienced solid economic growth in 2025 driven mainly by household consumption on
robust labour markets, easing inflation and, in most cases, higher real wages. Investment activity was fuelled by Next Generation
European Union funds. Deterioration of foreign demand was most pronounced in countries with a high dependency on Germany’s
economy, such as Slovakia or Hungary. Romania’s economy underperformed the CEE average as well. The economies of Croatia
and Poland posted the highest growth dynamics. Croatia benefitted from its booming tourism sector and was again one of the best
performing economies in the region. The Czech Republic also performed well. Consumer sentiment gradually recovered across all
CEE countries except Romania where fiscal consolidation affected households. Overall, CEE economies achieved GDP growth rates
ranging from 0.4% in Hungary to 3.6% in Poland in 2025.
Labour markets remained very strong in Central and Eastern Europe with the Czech Republic again posting one of the lowest
unemployment rates among the European Union countries. Inflation, on the other hand, increased in most CEE countries driven
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mainly by higher food and energy prices. Romania’s inflation was the highest in the European Union as the country eliminated the
cap on electricity prices and increased value-added taxes in the course of the year. The Czech and Polish central banks further cut
their interest rates throughout the year while the Hungarian, Romanian and Serbian central banks kept their policy rates
unchanged. In Slovakia and Croatia ECB policy rates apply. While most CEE currencies were relatively stable during the year the
Hungarian forint appreciated against the euro. Windfall taxes, special banking levies, and financial transaction taxes were
introduced or increased in a number of CEE countries.
Analysis of the business performance
NOTES ON THE BALANCE SHEET DEVELOPMENT
The balance sheet total as of 31 December 2025 decreased by 10.7% from EUR 108.1 billion to EUR 96.5 billion compared to the
end of 2024. The individual items developed as follows:
Due to increased overnight balances in euros held at the Austrian National Bank the item cash in hand, balances with central
banks increased by 41.7% from EUR 6.9 billion to EUR 9.8 billion. The 10.9% growth in public-sector debt instruments to
EUR 17.9 billion (previous year: EUR 16.1 billion) resulted primarily from the purchase of euro-denominated bonds, eligible for
refinancing with central banks, issued by the Republic of Austria and the European Union. The 23.4% decline in item loans and
advances to credit institutions from EUR 32.4 billion in the previous year to EUR 24.8 billion is attributable to lower foreign
volumes in repurchase agreements an d interbank lending transactions abroad, as well as to sales of unlisted foreign bonds from the
trading portfolio in foreign currency. Since new lending transactions with foreign customers in euros more than offset the sales of
foreign public sector bonds in foreign currency from the trading portfolio, the item loans and advances to customers increased
by 2.5% year-on-year to EUR 24.3 billion (previous year: EUR 23.7 billion). The decisive factor for the 68.2% decrease of the item
debt securities and other fixed-income securities from EUR 14.0 billion to EUR 4.4 billion was the reduction in repurchased
own issues, which due to delisting no longer had to be carried on the balance sheet. Primarily due to the write-up of Banca
Comerciala Romana SA, the carrying amounts of the items participating interests and shares in affiliated companies
increased by 4.9% from EUR 10.0 billion to EUR 10.4 billion as of 31 December 2025. The item other assets of EUR 2.7 billion
(previous year: EUR 2.9 billion) decreased by 7.3%, mainly due to the 11.3% decline in receivables from derivative products, which
now account for 76.0% (previous year: 79.4%) of the item.
The reduction of the item liabilities to credit institutions by 14.2% to EUR 30.5 billion (previous year: EUR 35.6 billion) is
primarily attributable to lower volumes of genuine repurchase agreements with foreign banks in euros. The main reason for the
17.5% decrease in the item liabilities to customers from EUR 10.7 billion to EUR 8.8 billion were lower term deposits from other
foreign financial clients. Due to the delisting of euro-denominated mortgage bonds and municipal bonds the item securitized
liabilities decreased by 19.9% to EUR 31.2 billion (previous year: EUR 38.9 billion). As a result of the doubling of liabilities from
short positions, mainly in Austrian government bonds, to EUR 1.2 billion (previous year: EUR 0.6 billion), the item other
liabilities rose by 20.2% to EUR 3.7 billion (previous year: EUR 3.1 billion). Since the scheduled redemptions more than
compensated for by new issues, the items supplementary and additional Tier 1 capital increased by 11.8% to EUR 8.3 billion
(previous year: EUR 7.4 billion).
After applying the deductions and filters stipulated in the Capital Requirements Regulation (CRR), Tier 1 capital (CET1 and AT1)
amounted to EUR 16.0 billion (previous year: EUR 12.1 billion) and Common Equity Tier 1 capital (CET1) to EUR 12.5 billion
(previous year: EUR 9.4 billion). The eligible own funds of Erste Group Bank AG pursuant to Part 2 of EU Regulation No.
575/2013 (primarily Tier 1 and Tier 2 capital) amounted to EUR 20.0 billion as of 31 December 2025 (previous year:
EUR 15.9 billion). The Common Equity Tier 1 (CET1) ratio was 31.7% (previous year: 23.0%) and the total capital ratio was
50.9% (previous year: 38.9%).
DETAILS ON EARNINGS
Since the significantly lower interest expenses from derivatives trading for hedging its own issues (fair value hedges) more than
compensated for the reduced interest income from bond and lending activities, Erste Group Bank AG's net interest income
improved by 55.5% to EUR 317.8 million (previous year: EUR 204.4 million). The 36.8% increase in income from securities and
participating interests to EUR 2,706.1 million (previous year: EUR 1,978.5 million) was primarily attributable to higher dividend
payouts from Ceska sporitelna, a.s., Erste & Steiermärkische Bank d.d., and Erste Bank der oesterreichischen Sparkassen AG – all
affiliated companies. Particularly due to higher returns from capital market financing, which more than offset the costs of hedging
Erste Group Bank AG's loans (financial guarantees for securitizations), the balance of commission income and expenses
increased by 12.1% from EUR 51.3 million in the previous year to EUR 57.5 million in fiscal year 2025. Net profit or loss on
financial operations reversed from EUR 35.4 million profit in the previous year to EUR 119.6 million loss in 2025, which was
attributable to FX derivatives (primarily for hedging investments). Realizations from early loan terminations were significantly
lower in 2025, resulting in a 15.9% decrease in other operating income to EUR 140.6 million (previous year: EUR 167.1 million).
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Overall, this resulted in a 27.3% improvement in operating income to EUR 3,102.4 million in 2025 (previous year: EUR 2,436.6
million).
Staff costs include fixed and variable salary costs, statutory contributions, costs from long-term social security provisions, and
pension fund contributions. Overall, staff costs increased by 1.9% to EUR 331.7 million (previous year: EUR 325.6 million) because
of the measurement of phantom shares due to the higher Erste Bank share price.
The number of employees at Erste Group Bank AG (weighted by level of employment) decreased by 3.3% primarily due to the
clarification of the term "on leave," compared to 31 December 2024 and was as follows compared to the previous year:

| Dec 25 | Dec 24
Domestic | 1,985.0 | 2,052.7
Foreign branches | 59.0 | 60.0
New York | 22.0 | 23.0
Hong Kong | 24.0 | 24.0
Berlin, Stuttgart | 13.0 | 13.0
Total | 2,044.0 | 2,112.7
thereof maternity/paternity leave | 47.6 | 106.2

Mainly due to increased IT and consulting costs other administrative expenses rose by 9.4% to EUR 354.1 million (previous year:
EUR 323.6 million). Depreciation and amortization of tangible and intangible fixed assets remained at the previous year's
level of EUR 13.6 million. Although expenses for credit derivatives used to hedge loans within the Erste Group (securitizations)
amounting to EUR 10.3 million were incurred for the first time in fiscal year 2025, other operating expenses decreased by 37.1%
to EUR 19.9 million (previous year: EUR 31.7 million), as no provisions were allocated in connection with the VAT interbank
exemption pursuant to sec. 6 (1) no. 28 of the Austrian VAT Act. Consequently operating expenses increased by 3.6% to
EUR 719.3 million (previous year: EUR 694.4 million).
After deducting total operating expenses from operating income, the operating result for fiscal year 2025 amounted to
EUR 2,383.1 million (previous year: EUR 1,742.2 million). The cost/income ratio (operating expenses as a percentage of operating
income) was significantly lower at 23.2% compared to the previous year's figure of 28.5%.
Like in the previous year, Erste Group Bank AG reported a net allocation of loan loss provisions (including write-downs on
loans netted with income from receipts on write-off loans) of EUR 9.8 million (previous year: EUR 10.5 million), which was due to
the continued tense geopolitical situation. The result from securities held as current assets (valuation and realizations) as well
as from the items income and value adjustments on participations and securities held as financial fixed assets amounted to a
positive EUR 434.2 million in 2025 (previous year: EUR 701.5 million). In the reporting year especially valuation of participations –
mainly the write-up of Banca Comercială Română S.A. – with EUR 367.3 million (previous year: EUR 574.9 million), the valuation
of the non-fixed interest Additional Tier 1 bonds issued by subsidiaries at EUR 17.5 million (previous year: EUR 153.2 million) and
the sale of long-term bonds held as fixed assets at EUR 34.9 million (previous year: loss EUR 27.4 million) improved the result.
Consequently, the result from ordinary activities in 2025 was positive at EUR 2,807.5 million (previous year:
EUR 2,433.3 million).
Since Erste Group Bank AG received profit distributions - not resulting from operating income - extraordinary income amounted
to EUR 4.4 million in the 2025 financial year (previous year: EUR 1.6 million). In 2025, Erste Group Bank AG generated a taxable
profit – as in the previous year – which was only partially offset against existing tax loss carryforwards. Consequently taxes on
profit or loss for 2025 resulted in an expense of EUR 12.0 million (previous year: EUR 2.5 million). Because of the additional
special payment of EUR 55.1 million due for 2025 as part of the bank levy other taxes increased to EUR 92.4 million in 2025
(previous year: EUR 26.8 million).
After considering the changes in reserves, which resulted in a net allocation (see Notes 18. Subscribed capital and reserves for
details) of EUR 2,399.7 million (previous year: EUR 1,177.6 million), both net profit for the year after distribution on capital
and net profit for the year amounted to EUR 307.9 million (previous year: EUR 1,228.0 million and EUR 1,231.5 million
respectively).
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Branches
Erste Group Bank AG maintains branches in New York, Hong Kong and Germany (Berlin and Stuttgart) that provide commercial
lending to foreign banks, leasing companies and sovereign debtors as well as institutional sales. For further quantitative
information, please refer to the notes, point 43.
ANTICIPATED DEVELOPMENT AND RISKS OF BUSINESS
Long-term growth trends in Central and Eastern Europe
In line with growing economic performances disposable income have risen significantly in recent decades compared to Western
Europe. In addition, most countries of Central and Eastern Europe have labour markets that are considerably more flexible. These
advantages are complemented by, on average, highly competitive export industries that benefit from wage costs that are low
relative to workforce productivity and from investor-friendly tax and welfare systems.
A comparison of per capita private debt levels in Central and Eastern Europe with those of Western economies reveals the gap that
exists between these markets. Private debt levels and particularly household debt, are substantially lower than in the advanced
economies. Erste Group Bank AG firmly believes that credit expansion accompanied by economic growth in this region will prove
to be a lasting trend.
Over the upcoming 15 to 20 years, on average, the countries of the eastern part of the European Union are therefore expected to
experience higher growth rates than the countries of Western Europe, even though periods of expansion may alternate with times
of economic stagnation or even setbacks on this long-term path of sustainable growth.
Customer banking in Central and Eastern Europe
The basis of Erste Group’s banking business are essentially the business segments of retail business, corporate business and the
capital markets business.
RETAIL BUSINESS
Erste Group’s key business is the retail business, covering the entire spectrum from lending, deposit and investment products to
current accounts and credit cards. Erste Group’s core competence in retail banking has historical roots. In 1819, wealthy Viennese
citizens donated funds to establish Erste Group’s predecessor, the first savings bank in Central Europe. It was their aim to bring
basic banking services such as safe savings accounts and mortgage loans to wide sections of the population. Today, the bank serves
over 16 million customers in its markets and operates nearly 1,800 branches. Wealthy private clients, trusts and foundations are
served by the bank’s private banking staff and benefit from services that are tailored to the needs of this target group.
In addition, the bank uses and promotes digital distribution channels such as internet and mobile banking not only to meet the
increasing importance of digital banking, but also to actively shape the digital future. George, Erste Group’s digital platform, is
already available in six core markets: Austria, the Czech Republic, Slovakia, Romania, Croatia and Hungary. T he roll-out in Serbia
already started after year-end 2025 and will be completed in 2026.
Retail banking is attractive to Erste Group for a number of reasons: It offers a compelling business case that is built on market
leadership, an attractive risk-reward profile and the principle of self-funding. In addition, it benefits from a comprehensive range of
products that are simple and easy to understand and provide substantial cross-selling potential. Erste Group takes advantage of
these factors in all core markets and makes best use of its resulting position of strength by pursuing a hybrid business model. Erste
Group’s integrated-channel approach integrates the various sales and communication channels. Customers decide on how, when
and where they do their banking business. Contact centers serve as interfaces between digital banking and traditional branch
business. These contact centers offer advice and sales, thus going far beyond the traditional help desk function.
In addition to the expansion of digital sales channels, the branch network remains an important component of the business
strategy. Only a retail bank that offers modern digital services and operates an extensive distribution network is able to offer tailor-
made solutions and fund loans in local currency mainly from deposits made in the same currency. In short, Erste Group’s retail
banking model supports sustainable and deposit-funded growth even in economically more challenging times. Another positive
factor is the diversification of the retail business across countries that are at differing stages of economic development, which is the
case across the seven banking markets in which Erste Group has a direct presence.
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CORPORATE BUSINESS
The second main business line, which contributes significantly to Erste Group’s earnings, is business with small and medium-sized
enterprises, regional and multi-national groups, commercial real estate and public sector companies. Erste Group’s corporate
strategy is based on a universal service approach, following an organic growth strategy aimed at increasing the number of primary
clients and share of wallet across all corporate sub-segments.
Erste Group strives to be the bank of choice for outstanding service, encompassing financial health and sustainable business
practices. Based on the specific needs of its clients, Erste Group serves small and medium‑sized enterprises through local branches
or dedicated commercial centers, while larger and multinational groups are supported by specialized Large Corporates,
Commercial Real Estate, or Public Sector units. In addition, the Group maintains a focused approach to large multinational clients,
which are served centrally from the Holding through Group Large Corporates or related specialized units. Digital channels are also
gaining increasing importance for corporate clients, particularly within the small and medium‑sized enterprise segment.
The outlined approach enables Erste Group to integrate its industry‑specific and product expertise with a strong understanding of
regional needs and preferences, supported by the combined experience of local and central customer relationship managers as well
as modern data supported technology and intelligence .
CAPITAL MARKETS BUSINESS
Client-driven capital markets activities are also part of the comprehensive portfolio of products and services that Erste Group offers
to its retail and corporate customers. The strategic significance of the bank’s centrally governed and locally rooted capital markets
operations consists in supporting all other business areas in their dealings with the capital markets and, hence, in providing the
bank’s customers with professional access to the financial markets. Erste Group, therefore, views its capital markets business as a
link between financial markets and its customers. As a key capital markets player in the region, Erste Group also performs
important functions such as market making, capital market research and product structuring.
The capital markets business serves the needs of Erste Group’s retail and corporate customers, as well as those of banks and non-
bank financial institutions. On account of Erste Group’s strong network in the eastern part of the European Union, the bank has a
thorough understanding of local markets and customer needs. In Erste Group’s capital markets business, too, the bank
concentrates on core markets of the Retail, SME, Large corporate, Corporate Real Estate and Public Sector business.
For institutional customers, specialized teams have been established in Germany and Poland, as well as in Hong Kong and New
York, that offer these customers a tailor-made range of products.
In many countries where Erste Group operates, the local capital markets are not yet as highly developed as in Western Europe or in
the United States of America. That means Erste Group’s banking subsidiaries are pioneers in some of these markets. Therefore,
building more efficient capital markets in the region is another strategic objective of Erste Group’s capital markets activities.
Customer Experience Index
As a profit-driven enterprise, Erste Group has a strong interest in its customers’ future behaviour and loyalty to the bank. The CXI
is an index that measures such loyalty and is derived from the evaluation of satisfaction ratings, referrals, readiness to switch to
another bank, customer effort score and the repurchase rate of the main customers of the individual banks
It thus reflects all conscious and unconscious experiences and decisions that Erste Group’s customers make with its bank in the
courses of their lives and that have an impact on the Group’s customers’ relations with Erste Group.
MEASURING CUSTOMER SATISFACTION
The Customer Experience Index (CXI) is determined by Group Customer Experience, which is part of Group Brand Management &
Communications, which in turn reports to the CEO. In the retail segment, a representative survey called the Banking Market
Monitor is carried out on a quarterly basis. 2,400 telephone interviews (with customers and non-customers) are conducted annually
across Erste Group’s markets. In the corporate customer segment, an extensive survey with at least 1,500 companies per country is
carried out once a year. These analyses are conducted by an external market research institute and provide data for a performance
comparison both within Erste Group and with its most important competitors. Based on these surveys, Erste Group’s customer
relations are rated in five categories (advocate, loyal, simply satisfied, non-engaged and dissatisfied) and successful improvement of
customer service is measured using the CXI (Customer Experience Index).
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Based on these categories Erste Group calculates the CXI as follows:
% advocates + % loyal customers + 0.5 x% simply satisfied -% non-engaged - % dissatisfied. The CXI rating therefore ranges on a
scale from -100 to +100. This value is put in relation to the Top 3 competitors in each country and in each segment and is used to
identify the strengths and weaknesses of the local banks as compared to the market leaders.
The CXI is of great relevance for Erste Group as it is also used as input in the bonus assessment for members of the Management
Board of Erste Group, local banks and all employees. Targets for bonus evaluation purposes are set jointly by Group People &
Culture, Group Customer Experience and relevant business lines.
DETAILED RESULTS
The table shows the relative difference to the Top 3 competitors in the market and the ranking of the bank in the respective market:
Differences in relation to the top 3 competitors

| PI | Micro | SME | Total
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024
Erste Group | 6.0 | 2.4 | 0.4 | -0.9 | 3.9 | 2.9 | 4.8 | 1.9
Erste Bank Oesterreich | 16.9 | 18.6 | 1.3 | 3.2 | 3.7 | -2.0 | 11.9 | 12.0
Erste Bank Hungary | 16.1 | 1.5 | 4.9 | 2.2 | 1.8 | 0.0 | 11.7 | 1.3
Česká spořitelna | -2.0 | -2.3 | -11.5 | -15.0 | 4.4 | 0.9 | -2.5 | -3.7
Slovenská sporiteľňa | 4.5 | 1.0 | 6.3 | 6.1 | 4.2 | 4.7 | 4.6 | 1.8
Banca Comercială Română | 5.5 | -0.4 | 1.8 | 1.5 | 1.5 | 1.6 | 4.3 | 0.3
Erste Bank Croatia | 12.9 | 13.2 | 11.0 | 6.8 | 10.1 | 9.3 | 12.0 | 11.1
Erste Bank Serbia | 7.4 | 4.1 | -2.4 | -3.0 | 2.7 | -0.8 | 4.7 | 2.1

number 1 in the respective market
In 2025, the Erste Group once again succeeded in maintaining – or even improving – the excellent customer satisfaction levels
achieved in the previous year.
CXI Privates (PI)
In the segment of private customers not only Erste Bank Oesterreich and Erste Bank Croatia achieved the best values in their
respective countries this year, but also Erste Bank Hungary, Erste Bank Serbia, and Banca Comercială Română.
Compared to the Top 3 competitors, Erste Bank Hungary, Erste Bank Serbia, Slovenská sporiteľňa, and Banca Comercială Română
were able to improve their results, while the other banks remained stable.
CXI Micro segment
In the Micro segment, the subsidiary Slovenská sporiteľňa, Banca Comercială Română, and Erste Bank Croatia succeeded in taking
the leading position in their respective banking markets. Compared to the Top 3 competitors, Česká spořitelna and Erste Bank
Croatia improved their performance, while the development of all other banks remained stable.
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CXI SME segment
In the SME segment, Česká spořitelna, Slovenská sporiteľňa, Banca Comercială Română, Erste Bank Croatia, and Erste Bank
Serbia demonstrated leading performance in their respective markets.The development in this segment was generally stable to
positive in all markets when compared to the Top 3 competitors. Erste Bank Oesterreich, Česká spořitelna, and Erste Bank Serbia
showed positive developments.
Erste Group’s strategy
Erste Group has devised a comprehensive and forward-looking strategy to secure its position as a leading financial institution in the
eastern part of the EU while addressing the challenges of rapidly changing market dynamics. Erste Group’s strategy addresses
significant global developments, including economic shifts, demographic changes, technological advancements, geopolitical
fragmentation and climate change, to ensure sustainable growth and resilience even in the event of a different future.
The political landscape in Europe and globally is changing rapidly, with rising populism, sentiments and measures hostile to the
European idea and potential political interventions in such forms as tariffs and new or expanded taxes posing challenges to some or
all of the bank’s core markets and to Europe more broadly. These challenges increase pressure on the continent’s politicians, often
leading to more interventionist policies and a distancing from the norms and practices that have so far shaped the EU. Monitoring
and appropriately responding to these developments on both global and CEE-specific levels is crucial for a large publicly-listed firm
with a prominent presence across the region.
Technological advancements, including AI, virtual/augmented reality, tokenized finance and quantum technology, are evolving
quickly. For Erste Group, data science and AI are expected to impact business operations and customer interactions, further
enabling high-quality and highly individualized digital advice and driving the demand for such advice on the part of the bank’s
clients.
The continuing convergence potential of CEE countries with the EU-27 remains a core principle of the bank’s business model.
However, rising wages and the end of cheap energy in Europe present growth challenges for the CEE economies, necessitating
adaptations to their long-term growth strategy.
The demographic shifts apparent across Europe will also impact the bank’s core markets, leading to shrinking workforces,
intensifying competition for talent and increasing wage pressures. Addressing these challenges through digitalization and AI to
improve workforce productivity is essential. Against the backdrop of ageing populations, Erste Group’s mission to provide access to
financial health across all age groups and customer segments takes on even more importance.
Environmental risks are also becoming increasingly significant. Projections indicate that five of the top ten global risks in the next
decade are likely to be environmental, such as extreme weather events and biodiversity loss. Erste Group is dedicated to
sustainability and aims to support social inclusion and is actively taking steps to support the net-zero transition being pursued by its
customers and region.
Erste Group’s strategy centers on five overarching objectives, designed to drive sustainable growth, improve customer experience
and strengthen operational excellence. These objectives emphasize the need for transformation, innovation and efficiency while
integrating principles of sustainability to ensure the bank remains competitive and relevant in a rapidly changing financial
landscape.
BUILDING A DISTINCTIVE BRAND IDENTITY
At the heart of Erste Group’s strategic goals is the creation of a unique and highly recognizable brand identity that resonates across
its markets. Erste Group seeks to differentiate itself from competition in the financial sector that is increasingly becoming
commoditized. This involves positioning Erste Group as more than just a bank, focusing instead on being a trusted partner that
understands and meets the needs of its customers at every stage of their financial journey.
To achieve this, Erste Group is committed to developing innovative and tailored products and services that cater to the specific
demands of regional markets and address the needs and interests of its customers at an individual level. This customer-first
approach is not only designed to foster customer-loyalty, but also to build long-term relationships by providing value that extends
beyond conventional banking. The group’s strong branding initiatives also seek to reinforce its reputation as a forward-thinking
and customer-focused financial institution.
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PROVIDING EVERYONE WITH ACCESS TO FINANCIAL EXPERTISE AND FINANCIAL ADVICE
Erste Group proactively empowers every customer to improve their financial health. Modern technologies, particularly artificial
intelligence (AI) are at the core of Erste Group’s strategic objective to provide everyone with access to financial advice. The bank
aims to make high-quality financial expertise accessible to a much broader customer base by applying AI and data-driven solutions.
This represents a significant shift from traditional models, where personalized financial advice was often limited only to higher-
income clients.
Erste Group’s use of technology enables customized insights and recommendations tailored to individual financial needs. Whether
customers are seeking advice on investments, savings or retirement planning, this approach ensures they receive relevant
information and product offers in an easy-to-understand format to improve their financial health. Importantly, these technological
advancements will complement but not replace human interaction, ensuring that customers can still benefit from face-to-face or
conversation-based support when needed.
Through these efforts, Erste Group aims to bridge the gap between technology and personal service, creating a seamless, hybrid
advisory model that enhances the customer experience. Erste Group is also committed to integrate sustainability and ESG
principles and to improve financial literacy across its markets as a means of fostering informed decision-making on the part of its
clients.
DRIVING EFFICIENCY THROUGH DIGITIZATION
A critical element of Erste Group’s transformation is its commitment to comprehensive digitalization. The bank plans to digitalize
all key processes across its operations, from customer-facing interactions to internal workflows, creating a more efficient and agile
organization. This focus on end-to-end digital solutions will not only enhance the speed and convenience of banking for customers
but also deliver significant cost savings and reduce operational risk through lowering the share of manual processes and improving
operational efficiency.
Digitalization efforts range from streamlining customer journeys, enabling seamless interactions through platforms such as Erste
Group’s flagship digital banking platform George, to digitalizing internal functions.
This ensures that customers can manage their banking needs independently while receiving a premium, user-friendly digital
experience. By making banking faster, more intuitive and more accessible, Erste Group can free up resources, allowing employees
to dedicate more time to high-value activities. This is essential for providing high-quality advisory services.
INNOVATIVE FINANCIAL HEALTH PROPOSITIONS
As part of its strategic focus, Erste Group is committed to developing innovative financial products and services that address the
evolving needs of its customers. This includes broadening the bank’s product offering in areas such as wealth management, as well
as introducing insurance and pension schemes designed to improve customers’ financial health and resilience. By aligning its
product portfolio with the priorities of its customers, Erste Group ensures that it remains relevant in an increasingly competitive
market.
By delivering value-driven and innovative solutions, Erste Group is positioning itself as a partner that genuinely cares about the
prosperity of its clients.
EXPANDING THROUGH ORGANIC AND INORGANIC GROWTH
Erste Group continues to capitalize on the substantial growth potential within the CEE banking sector by advancing both its
organic expansion initiatives and its long‑term strategy of targeted inorganic growth. With a focus on strengthening its presence in
existing markets and broadening its regional footprint, the Group has now taken a significant step toward consolidating its position
as a leading financial institution in Central and Eastern Europe through its successful entry into Poland — the region’s largest and
fastest‑growing economy, characterized by strong fundamentals and an underpenetrated banking sector.
A major milestone in this strategic expansion was the acquisition of Santander Bank Polska S.A. (‘SPL Bank’). The transaction
agreement was signed on 5 May 2025 and successfully closed on 9 January 2026, marking Erste Group’s formal entry into the Polish
market. The acquisition includes a 49% stake in SPL Bank as well as a 50% stake in Santander Towarzystwo Funduszy
Inwestycyjnych S.A. (‘TFI’- asset manager, further 50% are held directy by SPL Bank), both purchased from Banco Santander S.A.,
Spain. With the transaction now completed, Erste Group is positioned to accelerate operational integration and leverage the
substantial opportunities offered by this new market.
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Strategic mergers and acquisitions such as this one enable Erste Group to scale its operations more effectively, diversify its
customer base, and unlock synergies across the Group’s regional network. These advantages — combined with the Group’s solid
financial foundation — ensure that Erste Group remains well equipped to pursue high‑value opportunities that align with its
long‑term strategic direction.
The rationale behind the acquisition is firmly anchored in Erste Group’s objective to establish a meaningful and sustainable scale in
each of its core markets. Poland’s economic resilience, market size, and attractive growth dynamics make it a natural and
strategically compelling extension of Erste Group’s presence in the CEE region. With the acquisition now finalized and stepping
into the integration phase, Erste Group is poised to deepen its regional influence and reinforce its growth trajectory in one of
Europe’s most promising banking markets.
SUSTAINABILITY AS A STRATEGIC DRIVER
Sustainability is an integral part of Erste Group’s long-term vision to ensure future success by taking into account environmental,
social and governance (ESG) factors. Erste Group’s sustainability strategy is based on two main pillars: supporting the green
transition and promoting social inclusion.
The Group supports the green transition in the CEE region by promoting a sustainable real estate sector and financing emission
reductions in the energy sector, in line with Erste Group's net zero ambition. Erste Group offers sustainable financing, sustainable
investment funds and advisory services to help businesses and private clients reduce their environmental footprint and positions
itself as a preferred partner for sustainability-oriented clients.
Erste Group assists its corporate customers with ESG topics by facilitating their green transition. To align the retail business with
the ESG strategy, Erste Group offers products and services that promote decarbonization aiming to enhance both financial health
and environmental sustainability. These products are aimed at not only providing financial security, but also empowering
customers to achieve their long-term goals.
Internally, Erste Group is reducing its carbon footprint by optimizing energy use and adopting environmentally friendly practices.
Social responsibility is embedded in Erste Group’s DNA, with initiatives aimed at reducing inequality, increasing financial access
and supporting community development. The bank also focuses on governance, ensuring transparency, ethical decision-making
and accountability.
Innovation is key in this sphere too, with advanced technologies like AI and data analytics enhancing sustainability solutions. Erste
Group’s holistic approach to sustainability aligns its business goals with ESG principles, ensuring inclusive, responsible growth.
This strategy combines customer-centric initiatives, technological innovation, operational efficiency and sustainable growth,
positioning Erste Group as a trusted financial institution in the CEE region.
For more details regarding strategy please refer to the chapters ‘SBM-1 - Strategy, Business model and value chain' in the
sustainability statement’ and ‘E1 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business
model’.
O utlook statement
Erste Group’s goal for 2026 is to achieve a return on tangible equity (ROTE) of about 19% and an increase in earnings per share of
more than 20% based on 2025 net profit adjusted for one-off items compared to 2026 net profit adjusted for extraordinary items
connected to the acquisition and first-time consolidation of Erste Bank Polska. This ambition is built on the following key
assumptions:
Firstly Erste Group’s business, as at year-end 2025 in seven core markets (Austria, Czech Republic, Slovakia, Romania, Hungary,
Croatia and Serbia), is expected to perform well supported by an improved macro-economic environment, broadly stable interest
rates, especially in the euro zone, stable margins and healthy loan volume growth of more than 5%. Operating performance as
defined by operating result (operating income minus operating expenses) is expected to improve year-on-year, as net interest
income is projected to grow by about 5%, fee and commission income continues to grow by more than 5%, net trading and fair
result produces a similar revenue contribution as in 2025, and operating expenses grow in the order of 3%. Consequently, the cost/
income ratio is expected to improve from the level of about 48% in 2025 to about 47% in 2026. Other operating result is expected to
normalise following several positive one-offs in the amount of about EUR 270 million in 2025 and be more in line with the amount
of banking levies also booked in this line item. Risk costs, at 20-25 basis points, are expected at a similarly benign level as in 2025.
Secondly, extraordinary effects due to the full consolidation of Erste Bank Polska are primarily expected in net interest income,
operating expenses and risk costs. Net interest income will be negatively impacted by about EUR 170 million (equivalent to a net
profit impact of approx. EUR -60 million) connected to the amortisation of positive fair value adjustments recognised on debt
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securities and derivatives. In addition, interest income earned on the purchase price in 2025 will not recur in 2026. Operating
expenses will be affected by the amortisation of intangibles (customer stock and brand) and the booking of integration costs.
Customer relationships will be amortised over 10 years in the amount of about EUR 210 million per annum (net profit impact of
approx. EUR -70 million), while the brand will be fully written off following rebranding in 2026 (EUR 30 million gross or EUR ~10
million net). Remaining integration costs are forecast at EUR 180 million gross, mostly booked in 2026. The corresponding net
impact will depend on the allocation of costs between the parent company and the local bank, which is still to be determined. Risk
costs will be impacted by a EUR 300 million charge (net profit impact of about EUR -120 million) for expected credit losses of the
Polish portfolio required under IFRS 9 following fair valuation of all assets and liabilities on first-time consolidation, in line with
IFRS 3. This charge is not indicative of portfolio deterioration.
Consequently, taking into account organic underlying growth as well as the contribution from Erste Bank Polska including
extraordinary effects from its first-time consolidation, Erste Group in its now eight core markets, in 2026, targets net interest
income in excess of EUR 11 billion, fee income of approx. EUR 4 billion and operating expenses of about EUR 7 billion.
Consequently, the cost/income ratio is projected to improve to about 45%. Risk costs are expected in the range of 25-30 basis points
of average gross customer loans, as risk costs tend to be somewhat higher in Poland than in other CEE markets. This expectation is
adjusted for the EUR 300 million one-off ECL provision mentioned above. Reported net profit for the combined entity is forecast
somewhat below EUR 4 billion, net profit adjusted for extraordinary items related to first time consolidation of Erste Bank Polska is
projected at somewhat above EUR 4 billion.
First-time consolidation of Erste Bank Polska is expected to result in a CET 1-ratio drawdown of approximately 460 basis points,
and consequently, lead to a dip in the CET 1-ratio in the first quarter of 2026, albeit from a historic record level of 19.3% at the end
of 2025. Thereafter, in line with the projected strong profit performance, the CET1 ratio is expected to increase in 2026, providing
renewed capital return and/or M&A flexibility. Due to the full internal funding of the Erste Bank Polska acquisition, which
required higher profit retention in 2025, Erste Group management will propose a reduced dividend payment of EUR 0.75 per share
to the annual general meeting. This equals a payout ratio from 2025 net profit after deduction of AT1-dividends of 9.1%, in line with
the 2025 dividend policy of limiting the payout ratio to 10%, announced at the time of acquisition.
Potential risks to the guidance include (geo)political and economic (including monetary and fiscal policy impacts) developments,
regulatory measures as well as changes to the competitive environment. Current international (military) conflicts do not impact
Erste Group directly, as it has no operating presence in regions involved. Indirect effects, such as financial markets volatility,
sanctions-related knock-on effects, supply chain disruptions or the emergence of deposit insurance or resolution cases cannot be
ruled out, though. Erste Group is moreover exposed to non-financial and legal risks that may materialise regardless of the economic
environment. Worse than expected economic development may put goodwill at risk.
Risk Management
RISK PROFIL OF ERSTE GROUP BANK AG
In light of the business strategy of Erste Group Bank AG, besides participation risk, the main risks included credit risk, market risk,
interest-change risk in the banking book, liquidity risk and non-financial risks. In addition, a risk materiality assessment is
undertaken on an annual basis. It is ensured that all relevant material risks are covered by Erste Group Bank AG’s control and risk
management framework. This entails a set of different tools and governance to ensure adequate oversight of the overall risk profile
and sound execution of the risk strategy, including appropriate monitoring and escalation of issues that could materially impact the
risk profile of the group.
PARTICIPATION RISK
Participation risk refers to the risk of potential value losses from providing equity, as current-value write-offs, capital losses from
sales, omissions of dividends or decline of hidden reserves as well liability risks from letters of comfort or capital payment
commitments. The majority of direct and indirect participations are fully consolidated in the group balance sheet and thus these
risks are recorded ascertained. Consequently, potential risks of investments are usually covered by other types of risks and
correspondingly considered in their monitoring and control methods.
The participations entered into by Erste Group Bank AG took place in line with the strategic objective to invest in retail banking
whereby own experience and expertise could be contributed. In order to participate more in growth markets, geographic
diversification was increased by investing in central and eastern European states. In order to reduce the political, legal and
economic risks, the management focuses on countries within the EU or on potential EU candidate countries.
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RISK MANAGEMENT, INCLUDING RISK MANAGEMENT OBJECTIVES AND -METHODS RELATED TO THE USE OF
FINANCIAL INSTRUMENTS
In 2025, geopolitical developments continued to be a key observation factor for management. The ongoing international (military)
conflicts – in particular the Russian war of aggression against Ukraine and the unstable security situation in the Middle East – did
not have a direct impact on Erste Group Bank AG in the year under review, as the institution is not represented by local companies
in these regions. However, indirect effects, such as increased volatility on the financial markets, the effects of sanctions or the
potential occurrence of deposit insurance or resolution cases, cannot be ruled out. At the end of the fourth year of the Russia-
Ukraine war, Europe still does not have a fully stress-resilient energy supply. Electricity and gas prices continue to be traded at a
geopolitical risk premium, which puts energy-intensive companies in particular at a competitive disadvantage from an
international perspective. In addition, the sharp rise in wage costs in recent years has weighed on the overall economic situation.
Additionally, the United States' increasingly restrictive customs and trade policy since President Donald Trump took office has led
to new tensions in the international movement of goods and additional volatility in the financial markets. These protectionist
tendencies can also have an indirect impact on the European economy and put an additional strain on global supply chains.
The special risks of the lending business are taken into account to an appropriate extent by the recognition of risk provisions (value
adjustments for off-balance sheet credit transactions and provisions for off-balance sheet credit transactions). Details on this are
presented in the notes to the financial statement, section Notes on Accounting and measurement methods, “Impairment for credit
risks”.
Due to the multiple crises in recent years and the different effects on economic development, Erste Group Bank AG applied a
collective assessment of the significant increase in credit risk (stage overlays) at the end of December 2025 in addition to the
standard valuation of forward-looking information. This led to a shift to Stage 2 based on predefined portfolio characteristics. This
procedure was agreed in the savings bank sector and approved by the respective management bodies of Erste Group Bank AG.
Exceptions to the collective assessment of the significant increase in credit risk were necessary when specificities were identified
and properly documented as to why they behaved differently from the rest of the portfolio.
Certain industrial sectors are vulnerable to the distortions of the current environment, which has been marked by geopolitical and
macroeconomic shocks. Persistently high inflation and the reduction in disposable income continued to dampen private
consumption. At the same time, the great global uncertainty and high refinancing costs led to a negative impact on investments and
industrial activity. While some industries proved resilient, others continued to face high inventories, ongoing supply chain issues,
cost inflation and an additional drop in demand. This development has not yet been fully reflected in the financial data of
customers, which is why a further deterioration of ratings is expected. Moreover, the policy changes introduced by the new US
administration have further increased complexity in an already challenging global economy in a state of multiple crises.
Therefore, the rules for stage overlays (industry overlays) were defined as a combination of industries with a high risk profile
(according to the industry strategy) or medium risk profile and a hold/decrease strategy as well as one-year default probabilities
according to UGB/IFRS. Exceptions to this are permissible on the basis of an individual review and documentation.
The measurement of credit risk for the impacts of climate change is carried out on the one hand via the LGD models, where the
climate risk is indirectly reflected via the collateral value, and on the other hand ESG factors are taken into account when assessing
the soft facts in the corporate rating models. In addition, as of December 31, 2025, no collective assessment of the significant
increase in credit risk (stage overlays) is considered necessary.
For credit risk, the most important risk category, Erste Group Bank AG applies the internal ratings-based (IRB) approach according
to the Capital Requirements Regulation (CRR) and adopts this approach also for the assessment of economic capital requirements
according to Pillar 2. Furthermore, all methods and processes affiliated with and necessary for this approach are applied. At Erste
Group Bank AG, all essential internal models are validated annually and revised if necessary, whereby both observations made by
the supervisory authorities and foreseeable future amendments to the legal requirements are taken into consideration.
The market risks in the trading book are backed by equity capital own funds on the basis of an internal model. In order to hedge the
market risk from balance sheet assets (bonds, repurchase agreements on the asset side) and liabilities (own issues), the bank uses
interest swaps, currency swaps, credit derivatives and options as hedging instruments in micro-hedge relationships. Together with
the hedged underlying transaction, these hedging instruments are recorded in the balance sheet as a valuation unit based on
section 201 Commercial Code (UGB).
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Value at risk values (confidence level 99%, equally weighted market data, holding period 1 day)

in EUR or in EUR thousand | Total | Interest | Credit spread | Currency | Shares | Commodity | Volatility
Dec 25 |  |  |  |  |  |  |
Erste Group Bank AG | 53,946,005.83 | 42,390,742.14 | 35,279,025.40 | 740,458.38 | 1,246,321.00 | 333,009.94 | 593,278.19
Banking Book | 51,351,408.08 | 40,185,944.14 | 35,279,025.40 | 0.00 | 0.00 | 0.00 | 0.00
Trading Book | 2,594,597.75 | 2,204,798.00 | 0.00 | 740,458.38 | 1,246,321.00 | 333,009.94 | 593,278.19
Dec 24 |  |  |  |  |  |  |
Erste Group Bank AG | 54,709 | 52,561 | 8,309 | 639 | 1,049 | 197 | 648
Banking Book | 51,060 | 49,233 | 8,309 | 0 | 0 | 0 | 0
Trading Book | 3,649 | 3,328 | 0 | 639 | 1,049 | 197 | 648

VaR figure for Banking Book remained stable where lower investments on asset side were offset by credit spread risk increase. For
year end 2025 methodological changes were performed. Scope of bonds subject to credit spread risk has been extended from fair
value bond portfolio to also including amortised cost bond portfolio (closing of SREP finding) and treatment of margins in
cashflows was aligned with the methodology for the Supervisory Outlier Test from Economic Value Perspective (carve out of
margins).
The requirements for the generation of valuation units are fulfilled by the fair value hedge accounting processes which are applied
at Erste Group Bank AG. Details on these processes are presented in the notes to the financial statement, note 29.
The operational risk own funds requirements are calculated under the Standardised Measurement Approach with the Business
Indicator Component.
In order to provide a comprehensive overview of current and future risk and the cover pools of the Bank, the bank’s risk-bearing
capacity is determined by the Internal Capital Adequacy Assessment Process (ICAAP). The risk-bearing capacity provides regular
updates on the risk profile and capital adequacy, forming the basis for defining and implementing any measures that may be
necessary.
Erste Group Bank AG defines its risk strategy and risk appetite within the framework of the annual strategic planning process,
during which adequate orientation of the risk, capital and results and earnings targets is ensured. Strategic limits and principles are
defined for all types of risk on the basis of the RAS in the risk strategy. These limits and principles support the implementation of
medium and long-term risk decisions. Risk Management governance ensures the comprehensive overview of all risk decisions and
the proper execution of the risk strategy. Risk-reducing measures are carried out as part of the ordinary risk management process in
order to make sure that the Group acts in accordance with the defined risk appetite.
Statements concerning value adjustments for credit risks can be found in the Notes, note 31 and concerning off-balance sheet risk
items in the Notes, note 32 of this financial statement. Litigations are dealt with in the Notes in section General Information
(Ongoing legal cases).
RESEARCH AND DEVELOPMENT
Erste Group Bank AG ´s business purpose is to provide banking services. The production process of a bank is therefore not
connected with research and development in an industrial sense. However, development work impacts permanently the current
business of the bank.
Digitalisation in Erste Group
Digitalisation and innovative technologies have fundamentally transformed the banking sector, with change unfolding at an ever
faster pace. Digital technologies reshape not only consumer expectations. Erste Group is convinced that digital banking will further
gain in relevance and will be essential for sustainable economic success in the long term and is therefore committed to digital
innovation. Intra-group interdisciplinary teams are developing innovative solutions with the goal of offering everyone access to
financial literacy and financial advice and helping the bank’s customers to strengthen their financial health in a sustainable
manner.
The centre-piece of Erste Group’s digital strategy is the digital platform George, designed to provide customers access to
personalised products of Erste Group. APIs support a wide range of co-operation arrangements with fintechs, start-ups and even
across industries and can therefore help to open up new markets and attract new customers. George is available to retail customers
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in Austria, the Czech Republic, Slovakia, Romania, Croatia and Hungary.The roll-out in Serbia already started after year-end 2025
and will be completed in 2026. At present, George is being actively used by more than eleven million customers. The portfolio of
digitally available products and services is being constantly expanded. Customers can activate applications via plug-ins and use
them to manage their finances.
George Business was developed to provide excellent digital banking to corporate customers as well. It was implemented in Austria
in 2022, in Romania in 2023, and in the Czech Republic in 2025. The roll-out in Slovakia will be completed in 2026. It is the aim to
offer all customer segments across the group an outstanding digital user experience on a single platform.
Digital innovation such as artificial intelligence (AI) and deep customer data analysis are the key to success. Erste Group’s holistic
approach combines the broadening of financial expertise through the use of modern technologies (‘AI-supported digital advisory’)
with the digitalisation of all relevant bank processes. One App for the account, cards, savings, loan and securities account.
REPORTING ON MATERIAL CHARACTERISTICS OF THE INTERNAL CONTROL AND
RISK MANAGEMENT SYSTEM WITH REGARD TO THE ACCOUNTING PROCESS
Internal Control System Framework Requirements
The internal control system (ICS) is an essential element of the corporate governance system of Erste Group Bank AG contributing
to the safeguarding of shareholders’ investments and company’s assets. Erste Group Bank AG’s ICS plays a key role in identifying
risks associated with the respective internal processes.
The ICS Policy provides the framework conditions for the internal control system at Erste Group Bank AG. It defines current
standards concerning general tasks and responsibilities as well as minimum criteria for ICS documentation. In Erste Group Bank
AG, a top down, risk oriented, decentralised ICS approach is applied, designed based on the local process map, which promotes
adequacy by focusing on all material risks. This means, that all material risks identified must be mitigated by key controls which
are involved in the ICS process. The following criteria are applied for an adequate ICS:
_ Completeness: The process landscape as well as policies and procedures issued within the Group Policy Framework ensure that
all identified risks and potential risk scenarios are considered, regulated and managed, aiming to set up a comprehensive and
integrated control environment throughout the entity. All material risks must be covered with key controls, to demonstrate the
importance at local level.
_ Effectiveness and traceability: The functionality of key controls are regularly checked, the optimal control environment is
reviewed and challenged during monitoring activity of risk appetite/tolerance.
_ Comprehensibility: The process landscape together with local policies and procedures constitute documentation of identified key
controls, which ensures that relevant employees are aware of all key controls and their role in the internal control process is
transparent and accountable within the entire local entity.
The risk profile, which includes the current and target situation, is monitored by each individual risk function unit and is
illustrated in the framework of the consolidated risk reporting (GRR) for the management or relevant Risk Committee.
Control environment
The control environment provides the framework for the introduction, implementation and monitoring of IKS principles,
procedures and measures. The Management Board of Erste Group Bank AG is responsible for the establishment, structure and
application of an appropriate internal control and risk management system that meets the company’s needs in its group accounting
procedures.
The Code of Conduct provides orientation for all employees of Erste Group Bank AG, defines mandatory rules for day-to-day
business life, describes the corporate values, affirms the obligation to act responsibly as a company and ensures compliance with
legal provisions and internal guidelines (compliance).
The awareness of potential compliance issues and a sustainable risk culture enable risks to be identified quickly and well-
considered decision-making when dealing with existing regulations. The main component of the risk culture are internal
guidelines and, above all, open communication in order to create the broadest possible awareness of all employees for all risks that
Erste Group Bank AG is confronted with.
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Accounting AT, which is part of Group Accounting, coordinate s and verify the final accounts’ compilation for Erste Group Bank
AG. The assignment of powers, the process description and the necessary control procedures are defined in the operating
instructions.
Risk assessment and controls measures
The main risk in the financial reporting procedures is that errors or deliberate action (fraud) prevent facts from adequately
reflecting the company’s financial position and performance. This is the case if the data provided in the financial statements and
notes is materially deviating from the correct figures, i.e. whenever, alone or in aggregate, they could influence the decisions made
by the users of financial statements. Such a decision may incur serious damage, such as financial loss, the imposition of sanctions
by the banking supervisor or reputational harm.
The relevant units are obliged to comply with the accounting and measurement principles that are applicable for capturing, posting
and accounting transactions and laid out in the operating instructions relating to the UGB and in the IFRS Accounting Manual.
The basic components of the internal control system (ICS) at Erste Group Bank AG are:
_ controlling as a permanent financial/business analysis (e.g. comparison of target and actual data between accounting and
controlling) and control of the company and/or individual corporate divisions.
_ systemic, automatic control systems and measures in the formal procedure and structure, e.g. programmed controls during data
processing.
_ principles of functional separation and checks performed by a second person (the four-eye principle).
_ Integrated Disclosure Management Tool ensures high audit readiness through clear documentation (“Single Source of truth”).
The areas of responsibility assigned to the individual positions are documented and are continuously updated. Special attention is
paid to a functioning deputy regulation in order not to jeopardize the ability to meet deadlines if one person is absent. The annual
financial statements including the management report are reviewed by the audit committee of the Supervisory Board and are also
presented to the Supervisory Board for approval. It is published on the electronic announcement and information platform of the
Federal Government (elektronische Verlautbarungs- und Informationsplattform des Bundes (EVI)) and finally filed with the
Commercial Register.
Information and Communication
In accordance with Austrian Commercial Code (UGB)/Austrian Banking Act (BWG), the final accounts are prepared in a
standardized format and in compliance with the control measures described above. Before being passed on to the Audit Committee
of the Supervisory Board, the financial statements to be published are submitted to the managers and CFO for approval. During the
year the UGB-result is presented to the responsible board member (CFO) on a quarterly basis.
Reporting is almost fully automated, based on source systems and automated interfaces and guarantees up-to-date data for
controlling, segment reporting and other analyses. Accounting information is derived from the same data source and is reconciled
monthly for reporting purposes. Close collaboration between accounting and controlling permits continual target/actual
comparisons for control and reconciliation purposes.
In addition, when introducing new core banking systems and implementing new products, accounting is in contact with the
relevant departments in order to provide information at an early stage on accounting-specific aspects and implications for new
product launches.
Monitoring
In order to monitor and at the same time support strong governance and risk management, Erste Group Bank AG applies three
lines of defence to review the structures and processes that enable the achievement of the objectives for their effectiveness.
The first line of defence includes the business lines in which the department heads are responsible for monitoring including
internal controls of their business areas. This line is in constant dialogue with the business areas and reports on planned, actual and
expected results in connection with the goals of the organisation as well as on risks.
The role of the second line of defence is covered by specific areas of expertise, in addition to providing expertise, support,
monitoring and risk management tasks. At Erste Group Bank AG, these activities are carried out by the departments Risk
Management, BWG Compliance, WAG Compliance, Anti Money Laundering Prevention, Group Data and Reporting Governance
and Group Security. Above all, the departments should support the business lines in the control steps, validate the actual controls,
bring state-of-the-art practices into the organisation and cover tasks related to risk management.
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The third line of defence is responsible for providing independent and objective assurance and advice on the adequacy and
effectiveness of governance and risk management. Internal Audit is in charge of auditing and evaluating all areas of the bank based
on risk-oriented audit areas (according to the annual audit plan as approved by the Management Board and reported to the Audit
Committee). The main focus of audit reviews is to monitor the completeness and functionality of the internal control system.
Internal Audit has the duty of reporting its findings to the group’s Management Board, Supervisory Board and Audit Committee
several times within one year.
Internal Audit is according to section 42 Austrian Banking Act (BWG) a control body that is directly subordinate to the
Management Board. Its sole purpose is to comprehensively verify the lawfulness, propriety and expediency of the banking business
and banking operation on an on-going basis. The mandate of Internal Audit is therefore to support the Management Board in its
efforts to secure the bank’s assets and promote economic and operational performance and thus in the Management Board’s
pursuit of its business and operating policy. The activities of Internal Audit are governed in particular by the currently applicable
Rules of Procedure, which were drawn up under the authority of all Management Board members and approved as well as
implemented by them. The Rules of Procedure are reviewed on a regular basis and whenever required and adapted should the need
arise.
HOLDINGS, PURCHASE AND SALE OF OWN SHARES
The presentation of own shares as of trade date follows the disclosure requirements in accordance with the Austrian Stock
Corporation Act (AktG).
Holdings of own shares

Number of shares | Dec 25 | Dec 24
Erste Group Bank AG | -106,551 | -257,675
Affiliates | 551,329 | 761,329
thereof pledged | 0 | 0

As of 31 December 2025, other liabilities include a short position in Erste Group Bank AG shares amounting to 106,551 units (prior
year: 257,675 units), which is covered by securities lending deals.
From the purchase and sale of its own shares in the long portfolio Erste Group Bank AG realized selling gains in course of
securities trading in the amount of EUR 138,932.15 (previous year: EUR 19 thousand) which were recognized in the committed
capital reserve and selling losses - recorded in other reserves - in course of the employee share program in the amount of
EUR 694,411.60 (previous year: gains of EUR 148 thousand recognized in the committed capital reserve) respectively.
Purchase of own shares

| Erste Group Bank AG | Affiliates of Erste Group Bank AG
| Number of shares | Par value of the share capital EUR | Purchase price in EUR | Purpose of transaction | Number of shares | Par value of the share capital EUR | Purchase price in EUR | Purpose of transaction
January | 186,435 | 372,870.00 | 11,268,449.09 | trading |  |  |  |
February | 224,829 | 449,658.00 | 14,599,157.96 | trading |  |  |  |
March | 326,721 | 653,442.00 | 21,719,944.33 | trading |  |  |  |
March | 23,253 | 46,506.00 | 1,587,536.50 | employee share programm |  |  |  |
April | 398,793 | 797,586.00 | 23,360,058.01 | trading |  |  |  |
May | 116,459 | 232,918.00 | 7,974,434.22 | trading |  |  |  |
May | 22,000 | 44,000.00 | 1,553,700.00 | employee share programm |  |  |  |
June | 94,700 | 189,400.00 | 6,718,246.00 | trading |  |  |  |
June | 432,000 | 864,000.00 | 30,744,729.80 | employee share programm |  |  |  |
July | 49,155 | 98,310.00 | 3,736,778.76 | trading |  |  |  |
August | 79,466 | 158,932.00 | 6,703,999.81 | trading |  |  |  |
September | 178,594 | 357,188.00 | 14,881,965.11 | trading |  |  |  |

408

October | 54,412 | 108,824.00 | 4,585,848.87 | trading |  |  |  |
November | 48,650 | 97,300.00 | 4,387,379.24 | trading |  |  |  |
December | 155,854 | 311,708.00 | 15,489,804.14 | trading |  |  |  |
Total | 2,391,321 | 4,782,642.00 | 169,312,031.84 |  | 0 | 0.00 | 0.00 |

The purpose of securities trading was in particular ‘market making’ and hedging positions in the Austrian Stock Exchange Index
(ATX).
For further details on the employee share program, please refer to chapter Share-based payments.
Sale of own shares

| Erste Group Bank AG | Affiliates of Erste Group Bank AG
| Number of shares | Par value of the share capital EUR | Selling price in EUR | Number of shares | Par value of the share capital EUR | Selling price in EUR
January | 158,249 | 316,498.00 | 9,597,718.87 |  |  |
February | 249,493 | 498,986.00 | 16,173,528.51 |  |  |
March | 173,905 | 347,810.00 | 11,559,512.63 | 210,000 | 420,000.00 | 14,204,400.00
April | 361,592 | 723,184.00 | 21,738,088.85 |  |  |
May | 208,165 | 416,330.00 | 13,855,029.18 |  |  |
June | 719,873 | 1,439,746.00 | 50,527,831.12 |  |  |
July | 73,956 | 147,912.00 | 5,651,398.90 |  |  |
August | 57,357 | 114,714.00 | 4,830,231.21 |  |  |
September | 64,945 | 129,890.00 | 5,390,716.24 |  |  |
October | 65,251 | 130,502.00 | 5,584,049.15 |  |  |
November | 53,637 | 107,274.00 | 4,881,028.00 |  |  |
December | 53,774 | 107,548.00 | 5,321,544.56 |  |  |
Total | 2,240,197 | 4,480,394.00 | 155,110,677.22 | 210,000 | 420,000.00 | 14,204,400.00

CAPITAL, SHARE, VOTING AND CONTROL RIGHTS AND ASSOCIATED AGREEMENTS
The mandatory disclosure requirements of Section 243a (1) UGB are met as follows:
Capital structure and class of shares (No 1)
Subscribed capital on 31 December 2025 was EUR 821,028,768.00 (prior year: EUR 821,029 thousand), represented by 410,514,384
voting bearer shares (ordinary shares). For additional information reference is made to th e Note 18 Subscribed capital and reserves
respecti vely section General Information regarding details to the cross-guarantee scheme (Haftungsverbund).
Restrictions of voting rights and of the transfer of shares (No 2)
The Articles of Association do not contain any restrictions affecting voting rights or the transfer of shares.
In shareholder agreements ERSTE Stiftung - which, together with its syndicate partners, held 25.52% capital shares as at 31
December 2025 (previous year: 25.41%) agreed the following: concerning the appointment of the members of the Supervisory Board
the partners are obliged to vote as required by ERSTE Stiftung. The partners can dispose of shares according to a predefined sale
procedure and can purchase shares only within the quotas agreed with ERSTE Stiftung (of a maximum of 3% per calendar year);
with this regulation an unwanted creeping-in according to takeover law shall be prevented. In addition, the partners have
committed themselves not to make a hostile takeover bid, nor to participate in a hostile takeover bid nor to act together with a
hostile bidder in any other way.
Direct or indirect shareholdings amounting at least 10% (No 3)
Apart from ERSTE Foundation, the Management Board is not aware of any other direct or indirect shareholdings that amount to at
least 10%. For additional information please refer to the notes to the financial statements Note 20 Major Shareholders
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Special rights of control associated with holding shares (No 4)
There are no shareholders with special control rights.
Voting rights control in the case of capital participation of employees (No 5)
The voting rights of shares held by Erste Mitarbeiterbeteiligung Privatstiftung in trust or by proxy for the employees of employer
companies participating in employee share programs according to section 4d (5) (1) Income Tax Act (EStG) are exercised by the
Board of Directors of Erste Mitarbeiterbeteiligung Privatstiftung. The members of the Board of Directors are appointed and
dismissed by the Advisory Board through resolution with simple majority, whereby the delegation rights of Erste Group Bank AG
as well as the existing statutory employee representatives of Erste Group Bank AG and Erste Bank der oesterreichischen
Sparkassen AG shall be taken into account. A further member of the Board of Directors to be appointed by the Advisory Board shall
be a former member of the Management Board or a former (freelance) employee of an employer company pursuant to section 4d
(5) (1) Income Tax Act (EStG). The Advisory Board of Erste Mitarbeiterbeteiligung Privatstiftung consists of up to five members.
Special control rights, bodies and amendments of the articles of association (No 6)
This concerns:
_ Art. 15.1 of the Articles of Association, which provides that ERSTE Stiftung will be granted the right to nominate up to one third
of the members of the Supervisory Board to be elected by the shareholders’ meeting, as long as ERSTE Stiftung is liable for all
present and future liabilities of the company in the case of its insolvency pursuant to Section 92 (9) Banking Act,
_ Art. 15.4 of the Articles of Association, which provides that a three-quarter majority of valid votes cast and a three-quarter
majority of the subscribed capital represented at the meeting considering the proposal are required to pass a motion for removal
of Supervisory Board members and
_ Art. 19.9 of the Articles of Association, which provides that amendments to the Articles of Association, in so far as they do not
alter the business purpose, may be passed by simple majority of votes cast and simple majority of the subscribed capital
represented at the shareholders meeting considering the amendment. Where higher majority votes are required by individual
provisions of the Articles of Association, these provisions can only be amended with the same higher majority vote. Moreover,
amendments to Art. 19.9 require a three-quarter majority of the votes cast and a three-quarter majority of the subscribed capital
represented at the meeting considering the proposal.
Powers of the Management Board to issue and repurchase shares (No 7)
As per decision of the General Meeting of 21 May 2025:
_ The Management Board is entitled to purchase up to 10% of the share capital in own shares for the purpose of securities trading
according to section 65 (1) (7) Austrian Stock Corporation Act (AktG). However, the trading volume of shares acquired may not
exceed 5% of the share capital at the end of each day. The consideration may not be more than 50% below or above the closing
price of the share on the Vienna Stock Exchange on the last trading day prior to the acquisition. This authorization is valid for a
period of 30 months from the date of the resolution, i.e. until 21 November 2027.
_ The Management Board is entitled, pursuant to section 65 (1) (8) as well as (1a) and (1b) Stock Corporation Act and for a period
of 30 months from the date of the resolution, i.e. until 21 November 2027, to acquire own shares in the amount of up to 10% of
the share capital, subject to approval by the Supervisory Board and without any further resolution of the General Meeting at a
lowest consideration of EUR 2.00 per share and a highest consideration not exceeding 50% above the average Vienna Stock
Exchange price, weighted according to trading volumes, of the last 20 trading days prior to the respective acquisition of the
shares; in the case of a public offer, the cut-off date for the end of the calculation period shall be the day on which the intention to
make a public offer is announced (sec 5 (2) and (3) Austrian Takeover Act [ÜbG]). The acquisition may, at the discretion of the
Management Board and with the consent of the Supervisory Board, be effected on the stock exchange or by means of a public
offer or in any other legally permissible and expedient manner, in particular also off the stock exchange and/or from individual
shareholders and excluding the pro rata tender right (reverse subscription right). The authorization may be exercised in whole or
in part or in several partial amounts and in pursuit of one or more purposes by the Company, its affiliated companies (sec. 189a
(8) Commercial Code [UGB]) or for their account by third parties. Pursuant to section 65 (1b) Stock Corporation Act, the
Management Board is authorized for a period of five years from the date of the resolution, i.e. until 21 May 2030, with the
consent of the Supervisory Board, to sell or dispose the company’s own shares, also in a way other than via the stock exchange or
by means of a public offer for any legally permissible purpose, to determine the terms and conditions of the sale and to decide on
the exclusion of the shareholders ’ subscription rights. These authorizations include the sale of own shares in particular for the
following purposes: (i) in order to be able to sell the shares for a consideration other than cash, provided that this serves the
purpose of acquiring (also indirectly) companies, businesses, parts of businesses, shares in one or more companies domestically
or abroad; (ii) to transfer shares free of charge or at a reduced price to employees, executives and members of the Management
Board of the Company or of an affiliated company (sec 189a (8) Commercial Code [UGB]) or of any other company within the
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meaning of sec 4d (5) (1) Austrian Income Tax Act (EStG), as well as to Erste Mitarbeiterbeteiligung Privatstiftung and its
beneficiaries; and (iii) to resell own shares with partial or full exclusion of the subscription rights in any manner permitted by
law, including over-the-counter. The authorizations in this resolution may be exercised once or several times, in whole or in part,
individually or jointly.
_ The Management Board is authorized to redeem shares without further resolution at the General Meeting with the approval of
the Supervisory Board.
All sales and purchases were carried out as authorized at the General Meeting.
According to section 8.3 of the Articles of Association, the Management Board is authorized to issue until 18 May 2027, with the
consent of the Supervisory Board, convertible bonds (including Contingent Convertible Bonds according to section 26 Austrian
Banking Act), which have the conversion or subscription right for shares of the Company, observing or excluding the subscription
rights of the shareholders. The terms and conditions may, in addition or instead of a conversion or subscription right, also provide
for the mandatory conversion at the end of the term or at any other time. The issuance of convertible bonds is limited to the extent
that all conversion or subscription rights and in case of a mandatory conversion stipulated in the terms and conditions, the
mandatory conversion, are covered by conditional capital. Section 5.3 shall apply to the issue of convertible bonds without
subscription rights. The issue amount, the terms and conditions of the issue of the convertible bonds and the exclusion of the
subscription rights for the shareholders will be determined by the Management Board with the consent of the Supervisory Board.
Significant agreements which become effective, are amended or are rendered ineffective when there
is a change in the control of the company and their effects (No 8)
CROSS-GUARANTEE SCHEME AGREEMENT
The agreement in principle of the cross-guarantee scheme (Haftungsverbund) provides for the possibility of early cancellation for
good cause. Good cause, allowing the respective other contracting parties to cancel the agreement, is deemed to exist if:
_ one contracting party grossly harms the duties resulting from the present agreement,
_ the ownership structure of a party to the contract changes in such a way – particularly by transfer or capital increase – that one or
more third parties from outside the savings bank sector directly and/or indirectly gain a majority of the equity capital or voting
rights in the contracting party or
_ one contracting party resigns from the savings bank sector irrespective of the reason.
The cross-guarantee scheme’s agreement in principle and supplementary agreements expire if and as soon as any entity that is not
a member of the savings bank sector association acquires more than 25% of the voting power or equity capital of Erste Group Bank
AG in any manner whatsoever and a member savings bank notifies the cross-guarantee scheme’s steering company and Erste
Group Bank AG by registered letter within twelve weeks from the change of control that it intends to withdraw from the cross-
guarantee scheme.
DIRECTORS & OFFICERS-INSURANCE
In the event that any of the following transactions or processes occur during the term of the insurance policy (each constituting a
‘change in control’) in respect of the insured:
_ the insured ceases to exist as a result of a merger or consolidation, unless the merger or consolidation occurs between two
insured parties, or
_ another company, person or group of companies or persons acting in consent, who are not insured parties, acquire more than
50% of the insured’s outstanding equity or more than 50% of its voting power (resulting in the right to control the voting power
represented by the shares and the right to appoint the Management Board members of the insured),
then the insurance cover under this policy remains in full force and effect for claims relating to unlawful acts committed or alleged
to have been committed before this change in control took effect. However, no insurance cover is provided for claims relating to
unlawful acts committed or allegedly committed after that time (unless the insured and insurer agree otherwise). The premium for
this insurance cover is deemed to be completely earned.
In the event that a subsidiary ceases to be a subsidiary during the insurance period, the insurance cover under this policy shall
remain in full force and effect for that entity for the remainder of the insurance period or (if applicable) until the end of the
extended discovery period, but only in respect of claims brought against an insured in relation to unlawful acts committed or
alleged to have been committed by the insured during the existence of this entity as a subsidiary. No insurance cover is provided for
claims brought against an insured in relation to unlawful acts committed or allegedly committed after this entity ceased to exist.
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COOPERATION BETWEEN ERSTE GROUP BANK AG AND VIENNA INSURANCE GROUP (VIG)
Erste Group Bank AG and Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) are parties to a general distribution
agreement (the Agreement) concerning the framework of the cooperation of Erste Group and VIG in Austria and CEE with respect
to bank and insurance products. Originally concluded in 2008 (between Erste Bank der österreichischen Sparkassen AG and
Vienna Insurance Group der WIENER STÄDTISCHE Versicherung AG), the Agreement was renewed and extended in 2018 until
the end of 2033. The objective for the renewal and extension in particular was to adapt the Agreement to the corporate
restructuring of the original parties, to amend some commercial parameters and to align the Agreement with recent developments
in the legal framework. Already in the original Agreement the parties stipulated that both parties have the right to terminate the
Agreement in case of a change of control of one of the parties. In case of change of control of Erste Group Bank AG, VIG has the
right to terminate the Agreement. In case of change of control of VIG, Erste Group Bank AG has the reciprocal right. A change of
control is defined, with respect to Erste Group Bank AG, as the acquisition of Erste Group Bank AG by any person/entity other
than DIE ERSTE österreichische Spar-Casse Privatstiftung or Austrian savings banks of 50% plus one share of Erste Group Bank
AG’s shares or voting rights. In respect to VIG, the aforementioned provisions apply analogously, except for share purchases by
Wiener Städtische Wechselseitiger Versicherungsverein – Vermögensverwaltung – Vienna Insurance Group.
Apart from this regulation on the termination of the Agreement, the parties agreed in the renewal and extension of the Agreement
for an additional termination for cause if based on new legal or regulatory provisions, the continuation of the Agreement is
unreasonable for each or both of the parties.
Erste Group Bank AG and VIG are furthermore parties to an asset management agreement, pursuant to which Erste Group
undertakes to manage certain parts of VIG’s and its group companies’ securities assets. In case of a change of control (as described
above), each party has the termination right. The asset management agreement has been renewed and extended until 2033
concurrently with the renewal and extension of the Agreement outlined above.
Indemnification agreements (No 9)
In the event of a public takeover offer, there are no compensation agreements between Erste Group Bank AG and its Executive
Board and Supervisory Board members or employees.
NON-FINANCIAL REPORTING
Non-financial reporting for Erste Group Bank AG pursuant to Section 243b of the Commercial Code (UGB) is integrated in the
group management report and published in the annual report of Erste Group. The annual report is published on the website at
www.erstegroup.com/ir .
EVENTS AFTER BALANCE SHEET DATE
For events of particular importance that occurred after the end of the fiscal year, please refer to the notes 45.
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GLOSSARY
CEE (Central and Eastern Europe)
English abbreviation also commonly used in German applied to the economic area of Central and Eastern Europe. Includes the
new EU member states from expansion in 2004 and 2007 as well as the successor states to Yugoslavia and the Soviet Union and
Albania.
Cost-Income Ratio
Operating expenses as a % of the operating income.
Common Equity Tier 1 Capital Ratio
Common Equity Tier 1 capital (CET1) according to Art 50 CRR expressed in % of the total risk amount according to Art 92 (3) CRR.
Erste Group Bank AG
Erste Group Bank AG as individual company.
Erste Group
Erste Group as group of affiliated companies.
Forbearance
Concessions to the debtor due to financial difficulties.
Operating Expenses
Sum of general administrative expenses, value adjustments in respect of assets items 9 and 10 as well as other operating expenses.
Operating Income
Sum of net interest income, net commissions income, income from securities and participating interests, net profit or loss on
financial operations and other operating income.
Operating Result
Operating income less operating expenses .
Return on Assets
Profit for the year after tax before changes in reserves expressed in proportion to the average total assets as of the reporting date of
the previous year and the reporting year.
Return on Tangible Equity (ROTE)
Results from profit or loss for the year after tax before changes in reserves divided by the average equity adjusted for intangible
assets. The average is calculated on the basis of quarterly final values.
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Risk Appetite Statement (RAS)
The RAS is a strategic explanation that describes the maximum risk that a company is prepared to take to achieve its goals.
Tier 1 Capital Ratio
Tier 1 Capital according to Art 25 CRR in % of the total risk amount according to Art 92 (3) CRR.
Total Capital Ratio
The total eligible own capital according to Art 72 CRR expressed in % of the total risk amount according to Art 92 (3) CRR.
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Vienna, 25. February 2026
Management Board
Peter Bosek e.h.
Chairman
Ingo Bleier e.h.Stefan Dörfler e.h.
Member Member
Alexandra Habeler-Drabek e.h.Maurizio Poletto e.h.
Member Member
415
We draw attention to the fact that the English translation of this auditor’s report according to Section 274 of the Austrian Company
Code (UGB) is presented for the convenience of the reader only and that the German wording is the only legally binding version.
AUDITOR’S REPORT
REPORT ON THE FINANCIAL STATEMENTS
AUDIT OPINION
The Sparkassen-Prüfungsverband (Prüfungsstelle) and PwC Wirtschaftsprüfung GmbH, Vienna, – hereinafter referred to as “we” –
have audited the financial statements of Erste Group Bank AG, Vienna, which comprise the balance sheet as at December 31, 2025,
the income statement for the fiscal year then ended, and the notes.
In our opinion, the accompanying financial statements comply with legal requirements and give a true and fair view of the
financial position of the Company as at December 31, 2025, and of its financial performance for the fiscal year then ended in
accordance with the Austrian Company Code and the special legal requirements.
BASIS FOR OPINION
We conducted our audit in accordance with Regulation (EU) No. 537/2014 (hereinafter EU Regulation) and Austrian generally
accepted auditing standards. Those standards require the application of the International Standards on Auditing (ISAs). Our
responsibilities under those provisions and standards are further described in the “Auditor’s Responsibilities for the Audit of the
Financial Statements” section of our report.
We are independent of the Company in accordance with Austrian Generally Accepted Accounting Principles, the provisions of the
Austrian Banking Act and professional requirements and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained until the date of this auditor’s report is sufficient and
appropriate to provide a basis for our opinion by this date.
416
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the fiscal year. These matters were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have structured key audit matters as follows:
_ Description
_ Audit approach
_ Reference to related disclosures
(1) REVERSAL OF IMPAIRMENT - BANCA COMERCIALĂ ROMÂNĂ S.A.
Description
Erste Group Bank AG, Vienna, is the main shareholder of Banca Comercială Română SA, Bucharest, (“BCR”) with a stake of
99,89%. The acquisition costs of BCR amount to EUR 4.611,4 Mio. The carrying amount of the shares in BCR (hereinafter referred
to as the “investment”) as of December 31, 2025, amounts to EUR 4,025.5 million after the reversal of impairment of EUR 353.4
million made in the financial year 2025. The reversal of impairment of this investment largely depends on the expectations
regarding BCR’s economic development and on the assumptions and parameters used in the valuation.
To assess the recoverability or possible reversal of previous impairments of the existing carrying amount of investments,
impairment tests are performed annually.
In determining the fair value using a discounted cash flow model, the calculation of future distributable profits is based on the
planned and by management and supervisory board of BCR approved forecast results (budgets) for the years 2026 to 2030, taking
into account compliance with regulatory capital requirements. The fair value was determined using different budget scenarios
(base and downside), which were weighted according to their expected probabilities of occurrence.
Due to
_ management's discretion in determining future scenarios incorporated into the budgets and in calculating future planned
results
_ the complexity of the models and interdependent assumptions, as well as the associated audit effort, and
_ the monetary volume of the reversal of impairment
we have identified this area as a key audit matter.
Audit Approach
In order to assess the appropriateness of the carrying amount of Erste Group Bank AG's investment in BCR as of December 31,
2025, we have with the support of internal valuation experts with the necessary industry knowledge
_ evaluated the summary of the planning data in the two budget scenarios (base and downside) that were used as a basis for the
calculation of the appraised value, and
• assessed the steps taken to ensure the mathematical accuracy of the planning data.
• analyzed the key assumptions in the business plan and
◦ verified the plausibility of the derivation of key value drivers, such as the assumptions for the growth of interest-
bearing assets, the net interest income and for the cost-income-ratio (using benchmarking),
◦ verified the plausibility of compliance with regulatory capital requirements based on capital ratios and bank
specific minimum ratios,
◦ compared the macroeconomic assumptions used for the future with independent economic forecasts,
◦ reviewed the planning accuracy for past planning periods by comparing plan vs. actual values.
• critically assessed probability weighting of the two scenarios.
_ challenged the appropriateness of the cost of equity used to discount the resulting expected dividend by developing our own
estimate of the base interest rate, the beta factor, the market risk premium, the country risk premium and the inflation
differential.
_ compared, by using samples, if the target figures and parameters used in the valuation model concur with the approved budget
figures as well as with the evaluated parameters of the valuation model. Here, our focus was in particular on the assumptions on
the perpetual annuity (most notably on the growth rate and retention).
_ evaluated, the valuation models used with regard to their technical and mathematical accuracy to determine whether the
valuation method applied is consistent with the business model of the participating interest.
_ reconciled the determined appreciation with the posted reversal of impairment, ensuring that the historic acquisition cost
principle is observed.
_ evaluated the appropriateness and accuracy of the representations and explanations in the notes.
417
Reference to related disclosures
We refer to the comments made by management in the notes under the heading “Notes on accounting and measurement methods”
and item 40 of the “Notes to the balance sheet and income statement.”
(2) IMPAIRMENTS OF LOANS AND ADVANCES TO CUSTOMERS (EXPECTED CREDIT LOSSES)
Description
Impairments of Loans and Advances represent management's best estimate of the credit losses expected with respect to the loan
portfolio at balance sheet date. The calculation of impairments is carried out in line with the AFRAC 14 (June 2021) by using the
IFRS 9 model in the Austrian Company Code (UGB).
For loans and advances to customers in the amount of EUR 24.3 billion, measured at amortized cost, Erste Group Bank AG has
recognized credit loss allowances in the amount of EUR 0.2 billion as at December 31, 2025.
For the estimation of expected credit losses Erste Group Bank AG has implemented internal guidelines and specific processes. As
part of these processes to estimate expected credit losses the management relies significantly on complex criteria and judgements
subject to considerable discretion.
The models used for determining loss allowances are specific to the types of loan portfolios. There are country-specific and forward-
looking features both with regard to products and economic environment that are relevant to the respective loss estimate resulting
in heightened complexity of models and input factors. The uncertainties inherent in the estimation of impairments of loans and
advances, in particular the consideration of future economic conditions, are in 2025 significant due to the geopolitical and
economic developments.
Erste Group Bank AG has taken this into account by collective staging and in-model adjustments (overlays).
Details on the methodology are presented in management’s disclosures under item “Impairment for credit risks”.
Due to
_ the volume of risk provisions,
_ the complexity of models and interdependent assumptions and the resulting audit effort,
_ a high degree of uncertainty of future economic developments, which led to a high degree of auditor judgement and
_ the substantial judgement to be applied by the management in designing overlays, incl. determination and definition of weights
for future macroeconomic scenarios,
we identified this area to be a key audit matter.
Audit Approach
To assess the appropriateness of impairments of loans and advances to customers, we
_ updated our understanding of the Expected Credit Loss calculation methodology applied by Erste Group Bank AG based on
policies, documentation and interviews and assessed its compliance with the requirements of IFRS 9. We focused specifically on
adjustments to methods and processes made in order to capture the increased uncertainties of the present and future
environment in expected credit losses.
_ evaluated the control activities in credit risk management and lending business processes and tested key controls, in particular
with respect to the approval of loans, ongoing monitoring and the early warning system as well as the processes around the
early identification of default, as well as understood and evaluated the UTP-assessment (unlikeness to pay assessment).
_ evaluated control activities and tested key controls in the area of rating models and collateral valuation and critically assessed
the valuation of collaterals based on risk adjusted sampling.
_ assessed model governance and validation processes and critically reviewed the information brought to the attention of the
management. We evaluated, with the support from our internal credit risk modelling experts, the results of back-testing and
model validations.
_ examined and critically assessed the appropriateness of credit risk parameters and models, taking into account possible
structural breaks in the observable data, and assessed the plausibility of expectations and estimates made on the basis of such
biases, to identify significant increases in the credit risk of individual customers or groups of customers.
_ assessed the correctness of the stage allocation for selected portfolios based on applicable policies.
_ analyzed sensitivities and impacts of IFRS 9 specific model aspects.
_ evaluated whether key components of the calculation of expected credit losses are correctly incorporated in the models by
performing walkthroughs and reviewing steering tables.
_ assessed the correctness of the expected credit loss calculation (ECL calculation) for selected portfolios.
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_ evaluated whether forward-looking information integrated into the estimates is appropriate and reasonable. In particular, we
have compared the underlying macro-economic forecasts with external sources of information and critically assessed the
individual weights attributed to scenarios.
_ tested, on a sample basis, whether default events have been identified in accordance with applicable policies and evaluated
whether events occurred that significantly affect the borrower’s ability to repay loans and advances. Furthermore, we tested, on
a sample basis, the adequacy of individual loan loss allowances assessing the scenarios adopted and the estimation of expected
cash flows made.
Reference to related disclosures
For further details on the determination of expected credit losses and the design of the models used for this purpose, please refer to
the management commentary in the notes under the section “notes on accounting and measurement methods,” sub-section
“impairment for credit risks”.
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OTHER INFORMATION
Management is responsible for other information. Other information comprises any information included in the annual report, but
does not include the financial statements, the management report and the auditor’s report.
We obtained the corporate governance report in accordance with Section 243c UGB and the non-financial statement in accordance
with Section 243b UGB as part of the group management report prior to the date of this auditor`s report, all other parts of the
annual report are expected to be made available to us after that date.
Our opinion on the financial statements does not cover other information and we will not express any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read other information identified above when it
becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
RESPONSIBILITIES OF MANAGEMENT AND THE AUDIT COMMITTEE FOR THE FINANCIAL
STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the Austrian
Company Code and the special legal requirements, and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The audit committee is responsible for overseeing the Company’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with the EU Regulation and with Austrian
generally accepted auditing standards, which require the application of ISAs, will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the EU Regulation and with Austrian generally accepted auditing standards, which require
the application of ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
_ identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risks of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
_ obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal controls.
_ evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
_ conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Company to cease to continue as a going concern.
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_ evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the audit committee regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with all relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated to the audit committee, we determine those matters that were of most significance in the audit of
the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
OTHER LEGAL AND REGULATORY REQUIREMENTS
REPORT ON THE MANAGEMENT REPORT
Pursuant to the Austrian Company Code, the management report is to be audited as to whether it is consistent with the financial
statements and as to whether the management report was prepared in accordance with the applicable legal requirements. In
relation to the non-financial statement contained in the group management report, our responsibility is to check whether it has
been prepared, to read it and to assess whether this other information shows significant discrepancies with the annual financial
statement or with our knowledge gained during the audit, or otherwise appears to be misrepresented.
Management is responsible for the preparation of the management report in accordance with the Austrian Company Code and the
special legal requirements.
We conducted our audit in accordance with Austrian Standards on Auditing for the audit of the management report.
OPINION
In our opinion, the management report for the Company was prepared in accordance with the applicable legal requirements,
includes accurate statement pursuant to Section 243a UGB and is consistent with the financial statements.
STATEMENT
Based on the findings during the audit of the financial statements and the obtained understanding concerning the Company and its
circumstances no material misstatements in the management report came to our attention.
ADDITIONAL INFORMATION IN ACCORDANCE WITH ARTICLE 10 OF THE EU REGULATION
Pursuant to Sections 23 and 24 Austrian Savings Bank Act (SpG), the Sparkassen-Prüfungsverband (Prüfungsstelle) is the statutory
auditor of Erste Group Bank AG, Vienna.
At the annual general meeting dated May 22, 2024 and pursuant to Section 1 (1) of the Auditing Rules for Savings Banks, Annex to
Section 24 SpG, PwC Wirtschaftsprüfung GmbH, Vienna, was appointed as additional auditor for the financial year 2025 and,
subsequently, was engaged by the supervisory board. At the annual general meeting dated May 21, 2025 PwC Wirtschaftsprüfung
GmbH, Vienna, was appointed as additional auditor for the financial year 2026 and, subsequently, was engaged by the supervisory
board. Since 2017 PwC Wirtschaftsprüfung GmbH, Vienna, has constantly been appointed as additional auditor.
We confirm that the audit opinion in the “Report on the Financial Statements” section is consistent with the additional report to
the audit committee referred to in Article 11 of the EU Regulation.
We declare that we did not provide any prohibited non-audit services (Article 5 (1) of the EU Regulation) and that we remained
independent of the audited company in conducting the audit.
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RESPONSIBLE ENGAGEMENT PARTNER
Responsible for the proper performance of the engagement are Mr. Herwig Hierzer, Austrian Certified Public Accountant
(Prüfungsstelle des Sparkassen-Prüfungsverbandes), Mr. Martin Ziegler, Austrian Certified Public Accountant, (appointed auditor
within the meaning of Section 3 (1) of the Auditing Rules for Savings Banks) and Mr. Marius Richter, Austrian Certified Public
Accountant (PwC Wirtschaftsprüfung GmbH, Vienna).
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Vienna, February 25, 2026
Sparkassen-Prüfungsverband
(Prüfungsstelle)
(Bank Auditor)
Herwig Hierzer Martin Ziegler
Austrian Certified Public Accountant Austrian Certified Public Accountant
PwC Wirtschaftsprüfung GmbH
Marius Richter
Austrian Certified Public Accountant
This report is a translation of the original report in German, which is solely valid. Publication and sharing with third parties of the
consolidated financial statements together with our auditor’s opinion is only allowed if the financial statements and the
management report are identical with the German audited version. This audit opinion is only applicable to the German and
complete financial statements with the management report. For deviating versions, the provisions of Section 281 (2) UGB apply.
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Statements of all members of the Management Board
We confirm to the best of our knowledge that the separate financial statements give a true and fair view of the assets, liabilities,
financial position and profit or loss of the parent company as required by the applicable accounting standards and that the
management report gives a true and fair view of the development and performance of the business and the position of the
company, together with a description of the principal risks and uncertainties the company faces.
Vienna, 25. February 2026
Management Board
Peter Bosek e.h.
Chairman
Ingo Bleier e.h.Stefan Dörfler e.h.
Member Member
Alexandra Habeler-Drabek e.h.Maurizio Poletto e.h.
Member Member