Erste Group Bank AG

Changes in the segment reporting from 1 January 2016

Business news for the stock market

Vienna (pta021/14.04.2016/14:35) - Following a strategic review related to Erste Group's operating segments and the method used for capital allocation to the segments, changes were introduced in the segment reporting from 1 January 2016. To ensure comparability Erste Group has adjusted the segment reporting for all quarters of the financial year 2015.

Rationale for the changes * Alignment of the segment structure with the new governance following last year's changes in the management board responsibilities * Undivided assignment of the customer business according to the organisational set-up and steering * Adoption of the changes in the capital allocation according to adjusted capital requirements

Major changes * New business segmentation structure: The number of business segments was reduced from nine to six; the entire corporate customer business is now shown in one segment. * All business and geographical segments were affected by the changes of the parameters used for capital allocation.

Business segmentation (for graph see pdf)

The Retail segment is mostly affected by the shift of some Czech leasing subsidiaries from the former SME Segment.

The Corporates segment comprises SME (small and medium sized enterprises), Local Large Corporate, Group Large Corporate, Commercial Real Estate and Public Sector business. The former segment Other Corporate consisting of Investment Banking and International Business is split between the Corporates and Group Markets segments. Erste Group Immorent's split according to client responsibility resulted in the partial shift of the result to other segments.

The Group Markets segment now comprises not only trading and markets services but also the entire financial institutions customer business (formerly partially included in other segments).

The ALM/LCC segment was impacted by the shift of Czech Real Estate funds to the Corporates segment. In addition, part of the result of Erste Group Immorent was allocated to this segment.

The Savings Banks segment was only affected by the change in capital allocation parameters.

The Group Corporate Center (GCC) segment was affected by the new capital allocation parameters, the shift of financial institutions customers to the Group Markets segment as well as the shift of certain entities to the Corporates segment.

Geographical segmentation

(for graph see pdf)

The geographical segmentation structure remained unchanged.

All segments were affected by the changes of the capital allocation parameters.

The Other Austria segment was impacted by the shift of financial institutions customers from the Other segment.

The Other segment largely mirrors the developments in the business Group Corporate Center segment and Intragroup Eliminations.



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emitter: Erste Group Bank AG address: Am Belvedere 1, 1100 Wien country: Austria contact person: Thomas Sommerauer/ Simone Pilz phone: [phone] e-mail: [e-mail] website: www.erstegroup.com

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

[ source: http://www.pressetext.com/news/20160414021 ]