Erste Group Bank AG

Preliminary results 2014 - Seite 2

Taxes on income rose to EUR 509.4 million due to a negative change in deferred taxes (net) in the amount of EUR 197.0 million. The net result attributable to owners of the parent amounted to EUR -1,442.0 million (EUR 60.3 million).

Total equity (IFRS) declined to EUR 13.4 billion (EUR 14.8 billion). Common equity tier 1 capital (CET 1, Ba-sel 3 phased-in) decreased to EUR 10.6 billion versus EUR 11.2 billion (Basel 2.5). Total risk (risk-weighted assets including credit, market and operational risk, Basel 3 phased-in) increased to EUR 100.6 billion (EUR 97.9 billion). The common equity tier 1 ratio (CET 1, Basel 3 phased-in) stood at 10.6% versus 11.4% (Basel 2.5). The common equity tier 1 ratio (CET 1, Basel 3 final) increased quarter on quarter from 10.5% to 10.6%. The total capital ratio (Basel 3 phased-in) stood at 15.7% versus 16.3% (Basel 2.5).

Total assets amounted to EUR 196.3 billion (EUR 200.1 billion). Loans and advances to customers (net) increased moderately to EUR 120.8 billion (EUR 119.9 billion). The loan-to-deposit ratio stood at 98.6% (98.0%).

OUTLOOK

Operating environment anticipated to be conducive to credit expansion Real GDP growth is expected to be between 2% and 3% in all major CEE markets, except Croatia, driven by rising domestic demand. For Austria, a real GDP growth below 1% is forecast.

Return on tangible equity (ROTE) expected at 8-10% in 2015 (YE 14 TE: EUR 8.4 billion) Operating result is expected to decline in the mid-single digits on the back of lower but sustainable operating results in Hungary (due to FX conversion related effects of lower average volume and the expected reversal of a positive 2014 trading effect in 2015) and Romania (lower unwinding impact) as well as the persistent low interest rate environment.

For 2015, loan growth in the low single digits and a significant decline in risk costs are anticipated. Banking levies are expected to amount to about EUR 360 million in 2015, including contributions to European bank resolution and deposit insurance funds. Related discussions with the Austrian government are still ongoing.

Risks to guidance Consumer protection initiatives for example potential pre-election CHF legislation in Croatia as well as geopolitical risks (Eastern Ukraine conflict, Greece) could have a negative impact on Erste Group's operating environ-ment.



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emitter: Erste Group Bank AG address: Milchgasse 1, 1010 Wien country: Austria contact person: Thomas Sommerauer/ Simone Pilz phone: + 43 (0)5 0100 - 17741 e-mail: [e-mail] website: www.erstegroup.com

ISIN(s): AT0000652011 (share) stock exchanges: official trade in Vienna

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