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Erste Group –Accelerating operating performance provides a platform for growth

H1 201122

Disclaimer –Cautionary note regarding forward-looking statements

− THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THIS INFORMATION OR OPINIONS CONTAINED HEREIN.

− CERTAIN STATEMENTS CONTAINED IN THIS DOCUMENT MAY BE STATEMENTS OF FUTURE EXPECTATIONS AND OTHER FORWARD-LOOKING STATEMENTS THAT ARE BASED ON MANAGEMENT’S CURRENT VIEWS AND ASSUMPTIONS AND INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR EVENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH STATEMENTS.

− NONE OF ERSTE GROUP OR ANY OF ITS AFFILIATES, ADVISORS OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER (IN NEGLIGENCE OR OTHERWISE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS DOCUMENT OR ITS CONTENT OR OTHERWISE ARISING IN CONNECTION WITH THIS DOCUMENT.

− THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO PURCHASE OR SUBSCRIBE FOR ANY SHARES AND NEITHER IT NOR ANY PART OF IT SHALL FORM THE BASIS OF OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT WHATSOEVER.

H1 20113

Presentation topics

−Erste Group at a glance

−Operating environment

−H1 2011 financial key topics

− Funding

−Pfandbrief

−Contacts

H1 20114

- Erste Group went public in 1997 with a strategy to expand its retail business model into CEE

- Erste Group’s customer base grew from 600,000 in 1997 to 16.9 million in 2011

Erste Group at a glance –Austria’s first savings bank: Founded in 1819

- Erste Group now runs market leading retail banking operations in new EU member states, which remain underpenetrated compared to their Western European markets

Česká spo řitelna, a.s. Stake: 97.99% 2000

2001

2005

2006

2007

1997

2004

2003

New holding structure improving Group governance

2008

Slovenská sporite ľňa, a.s.Stake: 100%

Erste & Steiermärkische Bank d.d.(Erste Bank Croatia), Stake: 69.25%

Erste Bank Hungary Zrt.Stake: 99.94%

Erste Bank a.d. Novi SadStake: 80.49%

Banca Comercial ă Român ă S.A.Stake: 69.17%

Erste Bank UkraineStake: 100%

H1 201155

Erste Group at a glance –Clear focus on the eastern part of the EU

Clients: 0.9m

Hungary

Retail loans: 14.3%

Retail dep.: 7.4%

Branches: 184

Clients: 0.2m

Ukraine

Retail loans: 1.6%

Retail dep .: 0.3%

Branches: 133

Clients: 3.7m

Romania

Retail loans: 18.2%

Retail dep.: 23.2%

Branches: 667

Clients: 0.3m

Serbia

Retail loans: 3.1%

Retail dep.: 2.4%

Branches: 65

Clients: 0.9m

Croatia

Retail loans: 13.7%

Retail dep.: 12.8%

Branches: 144

Clients: 5.2m

Czech Republic

Retail loans: 25.2%

Retail dep.: 28.7%

Branches: 653

Clients: 2.4m

Slovakia

Retail loans: 25.9%

Retail dep.: 26.6%

Branches: 291

Clients: 3.2m

Austria

Retail loans: 19.3%

Retail dep.: 18.8%

Branches: 1,043

EU or EU candidate

Non-EU or non-EU-candidate

Indirect presence

− Leading retail bank with 16.9 m customers in 8 geographically connected countries

− 50,425 employees (32% in Austria)

− Long term relationships with retail, SME and corporate customers

− Favourable mix of mature & emerging markets with low penetration rates

− Potential for cross selling and organic growth in CEE

H1 20116

Erste Group –Key factors are trending positive

Macroeconomy� All CEE economies expected to grow in 2011

� CEE macroeconomic convergence expected to resume

Banking markets

Erste Group’s operating performance

Erste Group’s asset quality

� Still comparably low banking penetration

� Expected increase in demand for banking products

� Strong “through the cycle”-performance

� Continuing cost discipline

� H1 2011 cost/income ratio at 49.5%, down from 57.2% in FY 2008

� Credit quality improving significantly in Austria, the Czech Republic & Slovakia

� NPL formation driven by Romania and Hungary

� Declining risk costs yoy, resilient margins

Erste Group’s funding

� Comfortable liquidity position – loan/deposit ratio at 111.0%

� Short-term funding needs well covered / limited lon g-term funding required

� Covered Bonds: Austrian framework & Erste Group’s c over pool

Erste Group’s capital position

� Solid capital position and strong internal capital generation

� Core Tier 1 ratio at 9.5% (excluding participation capital 8.0%)

� Supports organic growth in CEE

H1 20117

Presentation topics




− Funding

−Pfandbrief

−Contacts

H1 20118

Business environment: Economy –Austria is outperforming the eurozone

− Austria performed well throughout the economic down turn− Lowest unemployment rate in EU− Strong position in terms of price competitiveness − No bubble in the housing market− High savings ratio and 3rd richest country in the EU

− Strong credit fundamentals remain intact

− Only minor fiscal adjustments in comparison to othe r European countries

Sources: Austrian Federal Financing Agency, Statistik Austria, European Commission Spring 2011 Economic Forecast.

in % 2010 2011 2012 2010 2011 2012

Real GDP growth 2.1 3.0 1.8 1.8 1.6 1.8

Inflation (HICP) 1.9 3.2 2.6 1.6 2.6 1.8

Unemployment 4.4 4.2 4.2 10.1 10.0 9.7

Current Account Balance 2.7 3.2 3.5 -0.4 -0.2 -0.1

Budget Surplus/Deficit -4.6 -3.9 -3.3 -6.0 -4.3 -3.5

Debt to GDP 72.2 73.6 75.0 85.4 87.7 88.5

Euro-ZoneAustria

H1 20119

Domestic demand growth in CEE

-30

-20

-10

0

10

20

30

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

in %

AT CZ RO SK HU

Export growth in CEE

-30

-20

-10

0

10

20

30

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

in %

AT CZ RO SK HU

Real GDP growth in CEE

2.1

2.2

-1.3

4.0

1.23.

0

2.3

2.0

4.0

2.6

-4.0

-3.9

-6.7-4

.8

-7.1

-10-8-6-4-202468

AT CZ RO SK HU

in %

2009 2010 2011e

Operating environment: macro outlook –CEE to grow much ahead of euro zone average

− CEE to experience different growth patterns in line with levels of export dependency and country-specific issues− AT: to build on solid 2010 performance− CZ, SK: industry to further benefit from German recovery − RO: long-awaited upswing has finally arrived, driven

mainly by investments and exports; however, consumption has not yet fully recovered

− HU: to remain driven by external demand while domestic demand weighs on recovery

− CEE (3.2%) to outgrow euro zone (2.0%) in 2011

Sources: Erste Group Research, Eurostat

2011e:AT: 1.8%CZ: 6.2%RO: 8.0%SK: 12.0%HU: 14.1%

2011e:AT: 0.9%CZ: 1.0%RO: 3.0%SK: 1.8%HU: 3.1%

2011 euro zone avg.

H1 201110

Presentation topics




− Funding

−Pfandbrief

−Contacts

H1 201111

H1 2011 executive summary –Solid net profit despite challenging banking environment

− Accelerating operating performance in Q2 11− Q2 11 operating result benefited from record NII and stable qoq costs− H1 2011 operating income up to EUR 3,893.4m on solid performance of all line items− H1 2011 operating expenses rose by 1.5% yoy to EUR 1,926.3m – increase well below inflation rate− H1 2011 operating result declined by 1.2% to EUR 1,967.1m− Cost/income ratio at 49.5% (H1 2010: 48.8%)

− Risk costs declined from EUR 1,084.2m to EUR 940.0m or by 13.3% yoy in H1 2011− NPL ratio based on customer loans rose to 7.9% (YE 2010: 7.6%), driven mainly by deterioration in HU and RO− NPL coverage increased to 60.6% from 60.0% at YE 2010− New NPL formation in H1 2011 of EUR 565m, down from EUR 1,002m in H1 2010

− Net profit rose despite banking taxes and negative result from financial assets− Net profit rose by 5.2% yoy to EUR 496.3m in H1 2011− Banking tax in Austria and Hungary amounted to EUR 95.6m (pre-tax) in H1 2011, adversely affecting the other

operating result− Result from financial assets deteriorated in H1 2011 on weak Q2 11 performance

− Excellent liquidity position – loan/deposit ratio im proved to 111.0%− Customer deposits continued to provide stable funding base − Successful long-term debt-funding in H1 11 with healthy mix of secured and unsecured public and private placements− Short-term interbank funding more than fully covered by central bank eligible collateral

− Further improvement in capital position− Tier 1 (total risk) up to 10.5% (YE 2010: 10.2%); core tier 1 ratio (exc. hybrid capital) up to 9.5% (YE 2010: 9.2%)− Total RWAs remained flat at EUR 119.7bn

H1 20111212

1) Operating result = Operating income (NII + net fee & commission income + net trading result) minus general administrative expenses

H1 2011 financial highlights –Accelerating operating performance in Q2 11

Operating income per quarter

1,361 1,391 1,337 1,296 1,394

493 476 495 481 474

144 140 1091,953 2,010 1,905 1,917 1,977

99 72

(100)

400

900

1,400

1,900

2,400

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

in E

UR

mill

ion

Net interest income Net fee and commission income Net trading result

Operating expenses per quarter

545 567 606 576 566

303 312 237 292 303

95 102 95 94945 973 945 963 963

97

0

200

400

600

800

1,000

1,200

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

in E

UR

mill

ion

Personnel expenses Other administrative expenses Depreciation and amortisation

− Operating income up 3.1% qoq, flat yoy in H1 2011− Net interest income flat yoy in H1 2011, qoq increase of 7.6% broadly based across all segments except Romania− Net commission income declined by 1.0% to EUR 954.9m in H1 2011 due to lower contribution from securities

business on reduced client transaction volume, qoq decline due to securities business− Net trading result of EUR 248.7m, up 3.6% yoy, down seasonally in Q2 11

− Operating expenses flat qoq, up by only 1.5% yoy in H1 2011− Personnel expenses increased by 4.7% (+4.0% FX-adjusted) yoy in H1 2011 on severance payments in Czech

Republic and full consolidation of an IT subsidiary in H2 10− Other administrative expenses decreased by 3.4% due to the consolidation of the IT subsidiary− VAT increases in several countries mitigated by cost cutting projects

H1 20111313

Erste Group‘s operating performance –Strong and improving through the cycle

Operating resultby segments

1.3 1.9 2.2 2.3

0.7

0.8 0.8

0.9

0.4

0.5

0.6 0.6

0.3

0.2

2.5

3.0

3.8 4.0

0.3 0.5

(0.2)

0.8

1.8

2.8

3.8

4.8

2007 2008 2009 2010in

EU

R b

illio

n

Retail & SME: CEE Retail & SME: ATGCIB Group MarketsCorporate Center

Operating income by segments

3.0 3.8 3.9 4.1

2.2

2.3 2.4 2.4 0.5

0.6 0.7 0.7

0.5

0.4 6.2

7.0 7.6 7.8

0.6 0.7

(1.0)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2007 2008 2009 2010

in E

UR

bill

ion

Retail & SME: CEE Retail & SME: AustriaGCIB Group MarketsCorporate Center

H1 201114

Erste Group’s asset quality & margins –Risk costs declining yoy, resilient margins

Risk cost development

0.6% 0.7% 0.7%

1.5%1.2%

1.6% 1.7% 1.9% 1.6% 1.7% 1.5% 1.3% 1.4% 1.4%0.5%

2.5%

0%

1%

2%

3%

4%

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

Group Austria CEE

Net interest margin development

2.77% 2.71% 2.86% 3.04% 2.86% 2.99% 3.09% 3.20% 3.03% 3.05% 3.14% 3.03% 2.88% 3.05%

4.33%

2.13%

1%

2%

3%

4%

5%

6%

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

Group Austria CEE

14

H1 201115

Customer deposit review –Deposit growth continued to outpace loan growth

Customer deposit trends by subsegments(Retail & SME detail: CEE)

25.0 25.1 24.6 26.6 25.9

7.0 7.2 7.8 7.7 7.7 6.9 7.0 7.1 7.1 7.1 3.9 3.7 3.9 4.0 4.2 4.1 4.1 4.1 4.0 3.9

47.4 47.7 48.1 50.1 49.5

0

10

20

30

40

50

60

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

in E

UR

bill

ion

Czech Republic Romania Slovakia Hungary Croatia Other CEE

Customer deposit trends by subsegments(Retail & SME detail: Austria)

32.5 32.3 33.1 32.6 32.7

27.9 27.7 27.8 28.1 28.8

60.4 60.0 60.9 60.7 61.5

0

15

30

45

60

75

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

in E

UR

bill

ion

Savings banks EB Oesterreich

− Customer deposits grew by 3.2% in H1 11 (+1.4% qoq)− In Q2, visible inflows especially in EBOe and in HU

− Retail & SME deposits increased by 1.9% ytd− Austria grew by 1.0% ytd, supported by EBOe

(+3.5% ytd)− CEE enjoyed growth of 3.0% ytd: supported by the

Czech Republic (+5.5%) and Hungary (+9.1% on the back of corporate deposit inflows); other core markets reported stable or slightly declining volumes

− Loan/deposit ratio improved to 111.0% in H1 2011 (Y E 2010: 113.4%)

Customer deposit trends by main segments

60.4 60.0 60.9 60.7 61.5

47.4 47.7 48.1 50.1 49.5

5.7 6.1 6.3 5.4116.6 115.3 117.0 119.2 120.8

5.8

0

25

50

75

100

125

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

in E

UR

bill

ion

Retail & SME - Austria Retail & SME - CEE GCIB Group Markets

H1 201116

Customer loans by currency

63.5% 63.5% 63.9%

18.9% 19.7% 18.9% 19.7% 19.6%

12.9% 12.6% 13.1% 12.4% 12.9%2.9% 2.4% 2.3% 2.1% 2.0%

64.2% 63.8%

0%

20%

40%

60%

80%

100%

Jun 10 Sep 10 Dec 10 Mar 11 Jun 11

EUR CEE-LCY CHF USD Other

Loan book review –Loan demand still to recover across segments

Customer loans by main segments *

63.6 63.9 64.7 64.1 65.2

47.9 48.7 48.6 49.2 49.7

18.4 18.7 18.9 18.7

131.0 131.5 132.7 132.8 134.1

19.0

0

30

60

90

120

150

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

in E

UR

bill

ion

Retail & SME - Austria Retail & SME - CEE GCIB

Quarterly loan book trends(Retail & SME detail: CEE)

17.1 17.9 17.5 18.0 18.1

11.2 11.2 11.2 11.3 11.1

5.6 5.7 5.7 5.8 5.9 7.6 7.6 7.8 7.6 7.9 5.4 5.3 5.5 5.6 5.8

47.9 48.7 48.6 49.2 49.7

0

10

20

30

40

50

60

Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

in E

UR

bill

ion

Czech Republic Romania Slovakia Hungary Croatia Other CEE

*) Segments do not exactly add up to total due to consolidation effects

− Customer loans increased by 1.0% ytd; up 0.9% qoq− Retail & SME segment growth mainly driven by currency

movements (EUR/CZK, EUR/CHF, CHF/HUF)− Private individual portfolios in Austria and Slovakia slightly

growing− In GCIB portfolio International business decreasing while Large

Corporate business gaining momentum

− Customer distribution remained broadly unchanged− Retail: new production was mostly focused on secured business

in Austria, Czech Republic and Slovakia− Public sector and private individual share increasing ytd− Currency distribution unchanged− Despite new business being mainly in local currencies and

EUR, CHF share of portfolio increased ytd on CHF appreciation

H1 201117

Asset quality review –Group trends: NPL formation down yoy

Erste Group: NPL ratio vs NPL coverage

7.3% 7.6% 7.6% 7.7% 7.9%

59.7%60.9%

60.0%61.4% 60.6%

0%

5%

10%

15%

20%

25%

30%


50%

55%

60%

65%

NPL ratio NPL coverage (exc collateral)

Quarterly NPL growth (absolute/relative)

531 505

5

242 323

5.9% 5.3%

0.0%

2.4%

3.1%

0

400

800

1,200

1,600


in E

UR

mill

ion

-4%

0%

4%

8%

NPL growth (absolute) NPL growth (relative)

Customer loans by risk class

70.2% 70.1% 70.7% 71.4% 70.6%

17.7% 17.5% 17.1% 16.5% 17.6%

4.9% 4.8% 4.6% 4.4% 3.9%7.3% 7.6% 7.6% 7.7% 7.9%

0%

20%

40%

60%

80%

100%


Low risk Management attn Substandard Non-performing

− NPL growth driven by Romania and Hungary− Increase of new NPL formation amounted to EUR

323 m in Q2 11 due to lower NPL sales of EUR 126m and new defaults in SME/real estate business

− NPL ratio based on customer loans increased to 7.9% (YE 2010: 7.6%) on flat loan book

− Migration trend shows stabilisation− Low risk share remains above 70%− Substandard share falling since Q1 2010

H1 201118

Credit RWA as percentage of customer loans

77.4%

Total RWA as percentageof total assets

55.9%

Core tier 1 ratio(total risk)

8.3%

9.2%9.5%

Dec 09 Dec 10 Jun 11

Erste Group’s capital position –Strong capital position and conservative asset mix

Core tier 1 ratio (total risk) = tier 1 capital excl. hybrid and after regulatory deductions divided by total RWA - including credit risk, market and operational risk.

Core tier 1 ratio excl. part capital(total risk)

6.9%

7.7%8.0%

Dec 09 Dec 10 Jun 11

Total assets: EUR 214.2 billionTotal RWA: EUR 119.7 billion

Customer Loans: EUR 134.1 billionCredit RWA: EUR 103.8 billion

H1 201119

Outlook

−CEE economies set to continue economic recovery in H2 2011− All of Erste Group’s CEE markets are expected to post GDP growth in 2011− Austria, Czech Republic and Slovakia to perform well, banking markets to grow− Romania and Hungary also growing 2011, but banking markets still sluggish

−Operating performance to be sustained in 2011 based on:− Resilient margins, accelerating loan growth and solid performance of net commission

income− Continued strict cost management, with increase below inflation rate

−Risk costs to decline from H1 2011 level in H2 2011− Risk costs to remain elevated in Romania and to rise in Hungary in 2011

−Core tier 1 ratio (Basel II) of 9.5% translates int o a common equity tier ratio pursuant to Basel III of comfortably above 7%− Ability to generate retained earnings to remain strong− Participation capital to be repaid following regulatory approval

H1 201120

Presentation topics




− Funding

−Pfandbrief

−Contacts

H1 201121

Shareholder structure –Total number of shares: 378,176,721

By investor By region

Updated June 2011

Free float: 64.6%

Other3.1%

Continental Europe20.5%

UK & Ireland8.0%

North America20.9%

Austria47.5%

Caixa Bank10.1%

Institutional investors

51.8%

Retail investors6.6%

Savings banks4.2%

Employees2.0%

25.3%

H1 201122

AAA

F1

A(stable)

AaaAAARepublic of AustriaLong-Term Credit

Rating

P-1A-1Erste Group

Short-Term Credit Rating

A1(stable)

A(stable)

Erste GroupLong-Term Credit

Rating

Erste Group –Stable ratings

H1 20112323

Erste Group’s funding profile –Excellent liquidity position

− Customer deposits remained the primary source of fu nding

− Providing a stable funding base in all local currencies− Reflected in loan/deposit ratio improvement to 111.0%

Evolution of Erste Group's funding mix

54.6% 57.0% 58.9% 61.1% 60.4%

17.0% 15.9% 15.6% 16.3% 16.3%

19.2% 18.1% 13.8% 10.5% 11.7%6.2% 5.8% 8.5% 9.0% 8.8%3.0% 3.2% 3.2% 3.0% 2.9%

0%

20%

40%

60%

80%

100%

Dec 07 Dec 08 Dec 09 Dec 10 Jun 11Customer deposits Issued bonds & CDs Deposits by banksEquity Subordinated capital

H1 20112424

Erste Group’s funding profile –Limited long-term funding required

− Total funding needs for 2011 of EUR 5 billion, of w hich EUR 4.1 billion has already been raised− Successful issuance of a 10 year jumbo Pfandbrief an d of a 5 year senior unsecured

benchmark, proof of access to the capital markets− Continued focus on extension of maturity profile

Funding Mix YTD

Pfandbrief BM 29%

Pfandbrief PP 20%

Senior BM 18%

Senior PP 25%

Capital (LT2) 7%

Funding Mix Total Outstanding Volume

GGB 9%

Senior 53%

Capital (LT2,UT2)

12%

Pfandbrief 26%

H1 20112525

Erste Group’s funding profile –Maximum annual redemption EUR 5.3bn

Redemption profile of Erste GroupH1 2011

2.2

5.34.8

5.1

3.13.3

2.2

0.40.9 0.9

2.0

0.8

2.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022+

in E

UR

bill

ion

Senior unsecured Covered bonds Subordinated debt Debt CEE subsidiaries

H1 201126

Presentation topics




− Funding

−Pfandbrief

−Contacts

H1 201127

Austrian Covered Bonds

Pfandbriefe (Mortgage Banking Act)Fundierte

Schuldverschreibungen

Hypothekenbankgesetz(Mortgage Banking Act 1899)

Pfandbriefgesetz(Pfandbrief Law 1938)

Law from 1905

Erste Group Bank

Bank Austria UniCredit

Landeshypothekenbanken

Pfandbriefstelle

BAWAG

Kommunalkredit

Legal framework in Austria –Mortgage and Public Sector Pfandbrief

H1 201128

Pfandbriefe –Legislation comparison

��XX��3NPV matching

��Pfandbriefe remain outstanding in case of issuer´s bankruptcy

��Special proceedings in case of insolvency

��X��Cover Pool monitoring (Trustee)

X��Legally required minimum over-collateralization

X��XX��Collateral assets limited to Europe

��X��Cover register

X2��X��Mortgage and public sector collateral assets in separate pools

��Pfandbrief law in place

NorwaySpainFranceGermanyAustria (Pfandbriefe) 1

Criteria of Pfandbrief law

1) Hypothekenpfandbriefgesetz

2) Several single cover pools possible 3) If included in the articles of association of the respective credit institution which is the case for EGB

H1 201129

Overview of Public Sector Cover Pool –Key characteristics

− Aaa Rating from Moody’s

− Strong and long existing legal framework for Austri an Pfandbriefe

− 98% of the Cover Pool assets are originated in Aust ria, 2% are in Germany

− Public sector loans represent 97% of the Cover Pool

− Average exposure per entity is less than € 2m

− Average seasoning is 4.5 years

− Quarterly updates on our homepage− www.erstegroup.com – Investor Relations – Debt Investors

H1 201130

Pfandbrief

Cover Pool

Overview of Erste Group –Public Sector Cover Pool

Structure as of 30/06/2011

Cover Pool in EUR

Total value of cover pool in EUR equivalent: 3,518,1 85,014

thereof loans in EUR: 3,314,636,969

thereof loans in CHF: 110,748,046

thereof bonds in EUR equivalent: 92,800,000

thereof Swaps in the Cover Pool in EUR equivalent:

Issues in EUR

Total outstanding issues in EUR equivalent: 2,826,602,922

thereof issues in EUR: 2,370,965,444

thereof issues in CHF: 455,637,478

Nominal over-collaterisation in %: 24.5%

Present value over-collaterisation in %: 23.9%

H1 201131

Overview of Erste Group –Public Sector Cover Pool

Regional distribution as of 30/06/2011

Distribution by type of borrower / guarantor as of 30/0 6/2011

Regional distribution Europe (in %)

Austria98%

Germany2%

Regional distribution Austria

Vienna20%

Lower Austria

20%Upper

Austria7%

Salzburg15%

Tirol6%Styria

16%

Carinthia6%

Burgenland1%

Vorarlberg2%

Republic Austria

7%

Government1%

Province22%

Municipalities36%

Guaranteed by

Government6%

Guaranteed by Province

17%Guaranteed

by Municipalities

14%

Other4%

H1 201132

Real house price development in euro zone –Changes in %, 1999-2009

The Austrian real house prices are stable since 1999

Source: ECB, European CommissionNote: Greece data cover the period 1999 to 2008, Luxembourg from 1999 to 2007. Nominal house price data are deflated by GDP deflator

H1 201133

Overview of Mortgage Cover Pool –Key characteristics

− Aaa Rating from Moody’s

− Strong and long existing legal framework for Austri an Pfandbriefe− Highest LTV allowed by law is 60% => Erste Group’s LTV at 50.1%

− First-ranking mortgage loans of mostly Austrian pro perties − 93% Austria and 7% Germany

− Solid mortgage origination through own savings bank network

− Recourse to borrower in default

− No NPLs in the cover pool (NPL is 90 days overdue payment)

− Recalibration of assets done on a yearly basis− assets over €3m revaluation every 3 years− assets under €3m reassesment yearly using the real estate index publized yearly from the

Austrian National Bank

− Fix/Floating mix: 10.5% fix and 89.5% floating rate l oans

− Quarterly updates on our homepage− www.erstegroup.com – Investor Relations – Debt Investors

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Pfandbrief

Cover Pool

Overview of Erste Group –Mortgage Cover Pool

Structure as of 30/06/2011

Cover Pool in EUR

Total value of cover pool in EUR equivalent: 7,124,1 53,368

thereof loans in EUR: 5,335,303,548

thereof loans in CHF: 1,643,849,820

thereof substitute collateral in EUR equivalent: 145,000,000

thereof Swaps in EUR equivalent:

Issues in EUR

Total outstanding issues in EUR equivalent: 5,358,027,905

thereof issues in EUR: 4,285,208,752

thereof issues in CHF: 1,072,819,153

Nominal over-collaterisation in %: 33.0%

Present value over-collaterisation in %: 32.7%

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Regional distribution as of 30/06/2011

Distribution by property type as of 30/06/2011

Overview of Erste Group –Mortgage Cover Pool

Regional distribution Europe (in %)

Germany6.7%

Austria93.2%

Switzerland0.1%

Regional distribution Austria

Vienna32%

Lower Austria

18% Upper Austria

2%

Salzburg7%

Tirol11%Styria

16%Carinthia

5%

Burgenland2%

Vorarlberg5%

Republic Austria

2%

Residential assets

36%

Non-profit Housing

Assoc. (Multi-Family

assets)22%

Commercial housing

(Multi-Family assets)

16%

Commercial assets

26%

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Erste Group –Conclusion

Leading retail bank in CEE with over 50,000 employees

Stable ratings (A1/A/A)

Profitable through the cycle

Strong deposit base and access to the capital markets

16.9 million customers, 97% thereof in the EU

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Presentation topics




− Funding

−Pfandbrief

−Contacts

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Contacts

− Erste Group Bank AG, Börsegasse 14, 1010 Vienna

E-mail: [email protected]

Internet: http://www.erstegroup.com/en/Investors/Debt-Investo rs

− Investor Relations

Thomas Sommerauer Tel: +43 (0)5 0100-17326 e-mail: [email protected] Pilz Tel: +43 (0)5 0100-13036 e-mail: [email protected]

− Debt Capital Markets/ Long Term FundingChristian Reiss Tel: +43 (0)5 0100-84012 e-mail: [email protected]ée Bauer Tel: +43 (0)5 0100-84013 e-mail: [email protected]

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