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24th Annual General Meeting Erste Group Bank AG 17 May 2017 Wiener Stadthalle

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Friedrich Rödler Chairman of the supervisory board

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First item on the agenda

Report on the financial year 2016

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Report on the financial year 2016 of Erste Group Bank AG (consolidated)

Andreas Treichl CEO Erste Group

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Disclaimer – Cautionary note regarding forward-looking statements

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• 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.

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Operating environment – Strong economic development in Erste Group‘s markets

Real GDP growth (in %)

Domestic demand contribution to GDP growth (in %)

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• CEE economies grew faster than the euro zone in 2016 (euro zone GDP grew by 1.8% yoy in 2016) • Domestic demand remained significant growth driver in 2016 • Insignificant contribution of exports to GDP growth in 2016

CZ

2.7 2.3

AT

1.5 1.5

2.9

HR

3.2

HU

3.4

2.0

RO

4.3 4.8

SK

3.1 3.3

HR

3.4 3.1

HU

3.6

0.4

RO

5.9 5.6

SK

2.2 1.5

CZ

2.4

1.6

AT

1.4 1.9

2017 2016

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Operating environment – Solid public finances in Erste Group‘s markets

General government balance (in % of GDP)

Public debt (in % of GDP)

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• General government balance in all markets except Romania within Maastricht limit • Public debt in most markets below 60% Maastricht limit; Austria, Hungary and Croatia are exceptions,

but with a positive trend

HR

-1.4 -1.6

HU

-2.7 -2.2

RO

-3.5

-2.8

SK

-1.5

-2.2

CZ

-0.6

0.5

AT

-1.2 -1.6

8474

37

52

37

85 8274

39

52

36

81

SK HR RO CZ AT HU

2016 2017

Maastricht limit: -3%

Maastricht limit: 60%

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Business environment – Historic low interest rate environment poses challenges

Austria

8

Czech Republic Romania

Slovakia Hungary Croatia

• ECB cut discount rate to 0% in March 16; maintains expansionary monetary policy stance

• National bank maintains ultra-low interest rates since Nov 2012 at 0.05%

• Central bank cut policy rate to historic low of 1.75% in May 2015

• As part of euro zone ECB rates are applicable in SK

• Base rate was cut to historic low of 0.9% in May 2016

• Central bank maintains discount rate at 3.0% since 2015

2016 2015

0.46%

-0.23%

0.74%

-0.02%

10-year Gov 3m Interbank

2016 2015

0.43%

0.29%

0.67%

0.31%

2016 2015

3.36%

0.65%

3.50%

1.10%

2016 2015

0.58%

-0.23%

0.82%

-0.02%

2015 2016

3.19%

1.06%

3.44%

1.61%

2015 2016

0.73% 0.98%

Source: Bloomberg.

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Business performance: customer loans and deposits – Continued loan growth, strong deposit base, balanced business

Customer loans (net)

Loan/deposit ratio

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0.1 0.3

RS 0.8 0.7

HR 5.8 6.0

HU 3.2 3.1

SK 10.2 9.3

RO 7.1 7.2

CZ 21.4 19.7

AT/OA 12.1 12.1

AT/SB 39.5 38.0

AT/EBOe 30.6 29.5

Group 130.7 125.9

Other in EUR bn

31/12/16 31/12/15

Customer deposits

117.9% 107.3%

100.8% 111.3%

70.4% 77.9%

89.7% 87.3%

66.8% 75.9% 73.2% 74.6%

297.3% 326.9%

98.8% 100.5%

96.1% 97.4% 94.7% 98.4%

0.0 -0.5

0.7 0.6

5.7 5.4 4.6 4.0

11.4 10.7 10.6 9.4

29.2 26.4

4.1 3.7

39.9 37.9

31.8 30.3

138.0 127.9

in EUR bn Not meaningful

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Business performance: operating revenues and expenses – Pressure on revenues, increase in costs driven by regulatory requirements and IT

Operating revenues Operating expenses

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4,445

6,772 255 210

2015

1,862

-1.0%

2016

6,703 261 284

1,783

4,375

Other income Net trading result Net fee and commission income Net interest income

445 4,028

2016

3,869

2,245

+4.1%

453

1,236

2,339

2015

1,179

Depreciation and amortisation

Personnel expenses Other administrative expenses

in EUR m in EUR m

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Business performance: operating result and cost/income ratio – Operating result declines year-on-year

Geographic segments

Performance summary

• Declining operating result across all countries, except Serbia

• Pressure on operating performance in:

• Romania due to NPL disposals • Czech Republic due to low interest rate

environment & card fee cap • Savings Banks due to higher operating expenses

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RS 21

340

469

326

-157 Other -104

145

SK 320 157

RO

334 266

424

AT/EBOe 391 400

Group

751 CZ 713

213 215

2,663 2,903

HU

19

HR

AT/OA

AT/SB

323 52.2% 51.6%

63.1%

70.7% 67.3%

61.6% 60.2%

57.1%

48.5% 50.1%

56.8%

47.6%

53.5% 46.2%

46.6% 57.5%

44.3%

65.2% 66.9%

47.7%

in EUR m

2016 2015

Not meaningful

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Business performance: risk costs – Risk costs fall in all segments

Geographic segments

Performance summary

• Healthy or improving credit risk environment across the board: • Austria, supported by all three subsegments • Romania and Hungary, benefited from releases

of risk provisions • In all other CEE-markets

12

97

79

84

59

85

11

58

71

4

48

70

24

54

29

48RS

Other

HR 167

HU -92 106

SK

RO -62 -16

CZ

729

AT/OA

AT/SB

AT/EBOe

Group 196 0.56%

0.10% 0.20%

0.53%

-2.19%

0.68%

0.36% -0.18%

0.51%

-0.69%

0.21%

0.18% 0.61%

2.37%

0.13%

0.15%

0.72% 2.44%

0.63% 1.78%

in EUR m

2016 2015

Not meaningful

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Business performance: asset quality in 2016 – Strong asset quality improvement across all segments

NPL volume

NPL coverage (exc collateral)

13

41

75

33

56

AT/OA

1,712

686 1,345

AT/SB 2,219

6,678

AT/EBOe

9,314

861 781

1,980

834

475 540

HU

RO

Other

RS

HR 704 1,032

339 655

SK

CZ

928

695

Group

31.3% 13.5%

10.5% 6.8%

11.2% 15.3%

9.7% 18.7%

4.5% 5.6%

11.8% 20.2%

3.2% 4.1% 5.5%

10.5% 4.9% 5.6%

2.5% 2.9%

4.9% 7.1%

in EUR m

2016 2015

NPL ratio

96.7% 99.8% 99.1%

88.4% 72.4%

67.4% 75.0%

59.0% 72.1%

65.7% 85.3%

77.4% 82.8%

72.4% 63.9%

53.2% 58.1% 57.7% 59.3% 62.6%

69.1% 64.5%

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Business performance: other result – Other result improves slightly despite higher banking levies

Other result *

Levies on banking activities

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• Other result slightly improved yoy as a result of the VISA sale

• Increase in banking levies due to one-off banking tax payment in Austria

-517

2016 2015

-535 -389

-236

2016 2015

in EUR m in EUR m

*) Includes other operating result and gains/losses from financial assets and liabilities not measured at fair value through profit or loss, net.

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Business performance: pre-tax result and taxes on income – Further increase in pre-tax result

Pre-tax result

Taxes on income

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• Risk costs at historic low lead to further improvement of pre-tax result

• Tax rate is at 21.2% in 2016

2016

1,950

2015

1,639

-414-364

2015 2016

in EUR m in EUR m

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Business performance: net result and dividend – Dividend doubled to EUR 1.0 per share

Net result

Dividend

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• Highest net profit in corporate history • Payout ratio equates 34.0%

2016

1,265

2015

968

2016

1.0

2015

0.5

in EUR m in EUR

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Business performance: regulatory capital position – Capital build continues at fast pace in 2016, resulting in 13.4% in CET1 ratio

Regulatory capital (EUR bn)

Risk-weighted assets (EUR bn)

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Capital ratios (in %)

5.4 5.2

2016

18.8

13.6

2015

17.6

12.1

Tier 2 CET1

2.8 10.8

84.7

2016

101.8 3.6

15.1

83.1

2015

98.3

Market risk Op risk Credit RWA

2016

18.5

13.4

13.4

2015

17.9

12.3

12.3

Total capital CET1 Tier 1

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Q1 17 performance summary – Lower net interest income weighs on operating result

Operating revenues

Operating expenses

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Operating result

443 458

-1.4%

1-3 17

1,615 57 49

1,051

1-3 16

1,637 50 51

1,092

Other income Net trading result Net fee and commission income Net interest income

565 572

334 332

+0.9%

1-3 17

1,018 114

1-3 16

1,009 110

Depreciation and amortisation Other administrative expenses Personnel expenses

in EUR m in EUR m in EUR m

599620-3.4%

1-3 17 1-3 16

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Q1 17 performance summary – Net profit slightly down in Q1 17

Risk costs

Other result

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Net result

• Risk costs remain at historic low despite increase

• Other result improves mainly due to a lower banking levy in Austria

• Return on tangible equity of 9.8%

6656

+16.7%

1-3 17 1-3 16

-99

-137

1-3 17 1-3 16

in EUR m in EUR m in EUR m

262275-4.6%

1-3 17 1-3 16

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Q1 17 performance summary – Volume growth at excellent asset quality

Customer loans (net)

Customer deposits

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NPL ratio

• Customer loan growth mainly driven by the Czech Republic

• Continued inflow of customer deposits despite low interest rate environment

• Asset quality remains at excellent level

31/3/17 31/12/16

130,654 132,992

+1.8%

144,707

+4.9%

138,013

31/12/16 31/03/17

in EUR m in EUR m

4.9%

31/03/17

4.9%

31/12/16

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Share price performance – Share price up 21% year-to-date and up 46% year-on-year

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15

20

25

30

35

in E

UR

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• Real GDP growth of between 1.5-4.5% expected in 2017 in CEE and Austria • Real GDP growth to be driven by solid domestic demand, as real wage growth and declining

unemployment support economic activity in CEE • Solid public finances across CEE

Macro outlook 2017

• ROTE for 2017 targeted at 10%+ (based on average tangible equity in 2017) • Assumptions for 2017: at best flat revenues (assuming 5%+ net loan growth); cost inflation

of 1-2% due to regulatory projects and digitalisation; increase in risk costs, remaining at historically low levels; positive swing in other operating result due to lower Austrian banking tax

Business outlook 2017

• Impact from expansionary monetary central bank policies, inc negative interest rates • Political risks, eg various elections in key EU economies • Geopolitical risks and global economic risks • Consumer protection initiatives

Risk factors for guidance

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Conclusion – Outlook 2017

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Thank you for your attention!

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Agenda Items

Friedrich Rödler Chairman of the supervisory board

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Second item on the agenda

Appropriation of the profit

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Third item on the agenda

Grant of discharge to the members of the management board

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Fourth item on the agenda

Grant of discharge to the members of the supervisory board

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Fifth item on the agenda

Resolution on the remuneration of the members of the supervisory board

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Sixth item on the agenda

Appointment of an additional auditor

29

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Seventh item on the agenda

Elections to the supervisory board

30

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Eighth item on the agenda

Acquisition of own shares for the purpose of securities trading

31

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Ninth item on the agenda

Acquisition of own shares for no designated purpose

32

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Tenth item on the agenda

Acquisition of own shares for the purpose of offering these to employees, members of the management board or to a private foundation

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Eleventh item on the agenda

Amendments of the articles of association

34

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24th Annual General Meeting Erste Group Bank AG

Q & A

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24th Annual General Meeting Erste Group Bank AG

Resolutions

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Second item on the agenda

Appropriation of the profit

37

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Third item on the agenda

Grant of discharge to the members of the management board

38

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Fourth item on the agenda

Grant of discharge to the members of the supervisory board

39

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Fifth item on the agenda

Resolution on the remuneration of the members of the supervisory board

40

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Sixth item on the agenda

Appointment of an additional auditor

41

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Seventh item on the agenda

Elections to the supervisory board

42

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Eighth item on the agenda

Acquisition of own shares for the purpose of securities trading

43

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Ninth item on the agenda

Acquisition of own shares for no designated purpose

44

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Tenth item on the agenda

Acquisition of own shares for the purpose of offering these to employees, members of the management board or to a private foundation

45

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Eleventh item on the agenda

Amendments of the articles of association

46

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24th Annual General Meeting Erste Group Bank AG

Thank you for your active participation!