Page 1

ERSTEŚ Group Press release Additional insights will follow at ca. 11:45 CET 30 April 2021 Results for Q1 / 2021 : Erste Group posts good start to 2021 on back of low risk costs and higher fee income • First - quarter net profit up 50.9 % year - on - year to 355 million euros , reflecting lower risk costs as CEE economies prove resilient Strong operating result of 725 million euros ( + 31.5 % ) , with turnaround in net trading & fair value result and record fees income offsetting decline in NII Significant deposit inflows and solid lending growth across all markets Erste Group , the leading lender in Central and Eastern Europe , has launched into the rebound year 2021 with a solid operating result of 725 million euros ( up 31.5 % year - on - year ) . During the first quarter , the banking group formed low risk costs of 36 million euros ( down 42 % year - on- year ) as the risk environment in the region remained benign . Coupled with a reversal in the net trading and fair value result compared to the same quarter in 2020 , these lower risk costs offset higher tax charges and minorities to help boost net profit by 50.9 % to 355 million euros . Customer loans grew by 1.1 % since the start of the year to 168 billion euros , while customer deposit volumes increased by 7.5 % to 205 billion euros . The common equity tier 1 ratio ( CET1 , final ) declined from 14.2 % to 14.0 % . Erste Group CFO Stefan Dörfler : " We're off to a good start in 2021 , which promises to be a solid rebound year . Our operating business continues to run very well and our bottom line has been given a big boost thanks to lower risk costs and higher fee and commission income . " OPERATING INCOME POSTS STRONG GAIN Net interest income declined by 4.6 % year - on - year to 1.17 billion euros , also reflecting reduced NII contributions from the Czech Republic on account of a lower interest rate environment and a foreign currency effect . Net fee and commission income rose by 7.1 % to 540 million euros on the back of increases in all fee and commission income categories , most notably in the securities business and in asset management . The total revenues stemming from the net trading result and the line item gains / losses from financial instruments measured at fair value experienced a significant rebound , coming in at 66 million euros compared to a loss of nearly 120 million euros during the same period in 2020. Both line items were driven mostly by valuation effects . These developments helped push operating income 10 % higher year - on - year to 1.83 billion euros . COSTS DOWN SLIGHTLY General administrative expenses declined by 0.7 % to 1.10 billion euros , supported by a 1.2 % drop in personnel expenses to 622 million euros . Headcount ( on a FTE basis ) declined by 0.6 % from 45,690 to 45,411 at the end of the period . Other administrative expenses were nearly unchanged ( + 0.3 % ) at 346 Page 1/3