Erste Group grows customer business and increases loan target to over €290bn

• Loan volume incl. Erste Bank Polska up 24% YTD to €287bn supports higher FY target of over €290bn
• Deposit volume incl. Erste Bank Polska higher by 28% YTD to €324bn
• Loans (+5.8%) and deposits (+4.5%) also higher on comparable basis excluding Poland
• Risk costs remain moderate, NPL ratio at 2.3%
• Return on tangible equity (ROTE) at 20.9% for nine-month period
• CET1 ratio of 15.0% (pro-forma) leaves ample headroom to increase stake in Erste Bank Polska

In the first nine months of the year Erste Group Bank AG (“Erste Group”) continued its performance driven by strong organic growth and the inclusion of Erste Bank Polska. Loan volume including Erste Bank Polska increased by 24% to 287 billion euros in the first nine months of 2026, supporting a further increase of the full-year lending target to above 290 billion euros. The integration of Erste Bank Polska continued to progress according to plan, with the successful launch of a new operations centre in Poland and the integration of Erste TFI in Poland into Erste Asset Management. Furthermore, on 25 September 2026, Erste Group announced its intention to launch a voluntary tender offer for shares in Erste Bank Polska to increase its ownership stake to more than 50%. Regulatory approval has been obtained, and the offer is scheduled to launch on 2 November 2026 with subscription period starting on November 3.

"European sovereignty depends on companies with the financial strength to invest in Europe’s future and support growth across national borders. Central Europe has the potential to remain one of the continent’s strongest growth engines, and we intend to help make that happen. Our ambition to grow our loan book to more than 290 billion euros reflects both our confidence in the region and our commitment to financing its future,” said Peter Bosek, CEO of Erste Group.

 Operating performance improves on customer growth and cost discipline

Erste Group’s customer business continued its dynamic development throughout the year, driving notable growth in both deposits and lending volumes. Customer loans increased year-to-date by 5.8% on a comparable basis (excl. Poland). Loan growth was particularly strong in Austria, the Czech Republic, and Hungary. For the group excluding Poland, loan volumes increased in both the retail (+5.1%) and corporate (+6.5%) segments. Retail lending growth was primarily driven by mortgage loans with around 85,000 new mortgage loans concluded in the first nine months of 2026 (excl. Poland). Corporate lending expanded across all client segments, with investment financing accounting for the largest share of new business. More than 28,500 investment loans were granted to companies by Erste Group in the first nine months of 2026 (excl. Poland). With Erste Bank Polska’s loan portfolio of 41.9 billion euros included, loans increased by 23.9% to an overall volume of 287.4 billion euros (Dec. 2025: 232.0 billion euros).

Customer deposits on a comparable basis (excl. Poland) rose by 4.5% during the first nine months of the year, with growth within Erste Group’s long-established markets driven mainly by higher deposit volumes in the Czech Republic, Austria, and Hungary. Including the 59.9 billion euros in customer deposits at Erste Bank Polska, the Group’s overall deposit volume grew by 28.1% to 324.1 billion euros (Dec. 2025: 253.0 billion euros).

These higher loan and deposit volumes helped to drive growth in core revenues. On a comparable basis excluding Erste Bank Polska, net interest income (NII) grew by 7.0%. Including Poland, NII was 43.4% higher year-on-year at 8.3 billion euros (9M 2025: 5.8 billion euros), with NII growth particularly notable in Austria, the Czech Republic and Hungary. Net fee and commission income (NFCI) rose by 9.5% on a comparable basis, while with Poland included it was 24.0% higher at 2.9 billion euros (9M 2025: 2.3 billion euros). Beyond the contribution from Erste Bank Polska, the increase in NFCI was driven by positive developments in the securities business, with assets under management (AuM) increasing to 120.3 billion euros (Dec. 2025: 103.9 billion euros) as a result of strong market performance, continued customer growth in monthly investment plans and the inclusion of the asset manager Erste TFI in Poland. Across Erste Group, the number of securities savings plans increased to 2.3 million, up 16.6% since the beginning of the year, with particularly strong growth in the Czech Republic. The average monthly investment amount increased from 66 to 76 euros over the same period.

These positive developments in core revenues led to a strong 8.6% year-on-year increase in operating income on a comparable basis. Including the contribution from Erste Bank Polska led overall operating income to increase by 40.1% to 12.0 billion euros (9M 2025: 8.6 billion euros). The 3.1% year-on-year increase in operating expenses excluding Erste Bank Polska was in line with guidance. With Erste Bank Polska included, operating expenses rose by 30.1% and amounted to 5.3 billion euros (9M 2025: 4.1 billion euros). As revenue growth clearly outpaced the increase in operating expenses, the operating result rose by 13.5% on a comparable basis, while with Poland included it was 49.1% higher at 6.7 billion euros (9M 2025: 4.5 billion euros). Accordingly, Erste Group’s cost/income ratio improved to 45.0% on a comparable basis or 44.0% with Poland included (9M 2025: 47.4%).

Sound performance and high asset quality underpin robust capitalisation

For the first nine months risk costs remained moderate at 21 basis points (9M 2025: 19 basis points) of average gross customer loans and amounted to 451 million euros (9M 2025: 318 million euros). This includes the regular loan portfolio of Erste Bank Polska but excludes one-off effects in the amount of 302 million euros, recognised in accordance with IFRS 9 due to the integration of Erste Bank Polska in the first quarter of 2026. Overall, loan portfolio quality remained robust, with the NPL ratio improving slightly year-to-date to 2.3% including Erste Bank Polska (Dec. 25: 2.4%).

The burden from banking levies continued to increase in the first nine months of 2026 to 529 million euros (9M 2025: 284 million euros). This sharp year-on-year rise of 86.3% was driven by higher charges in Hungary (up from 141 to 224 million euros) and Romania (up from 41 to 59 million euros), as well as by the first-time recognition of banking taxes in Poland (148 million euros). In addition to these banking levies, the Group booked banking taxes of 56 million euros in Slovakia (9M 2025: 50 million euros) as taxes on income. Including Poland, taxes on income for the whole group rose to 1.3 billion euros (9M 2025: 815 million euros) through the first nine months in 2026 with the tax rate increasing to 24.0% (9M 2025: 20.5%).

After nine months, Erste Group’s net profit rose by 7.9%, excluding Erste Bank Polska. The increase including Erste Bank Polska was 20.6%, reaching 3.1 billion euros (9M 2025: 2.6 billion euros). Despite the one-off effects associated with the first-time consolidation of the Polish subsidiary, Central Europe continued to be the clear profit driver for the Group, accounting for two-thirds of its total net profit. The return on tangible equity (ROTE) rose to 20.9% through the first nine months (9M 2025: 16.8%). The strong development in the Group’s core business also helped its capitalization, with the common equity tier 1 capital ratio (CET1, pro-forma) standing at 15.0% at the end of the third quarter of 2026 (Dec. 25: 19.3%, before the closing of the acquisition of a controlling stake in Erste Bank Polska).

“Our strong operating performance reflects the quality of our customer relationships and allows us to further reinforce our earnings and capital position. This gives us the financial flexibility to pursue growth opportunities across our core markets, including Poland,” said Erste Group CFO Stefan Dörfler.

Erste Group slightly upgrades 2026 outlook

Continued strong business performance in the first nine months of 2026 has enabled Erste Group to once again raise its financial guidance for the full year. Driven by robust customer demand, the target for loan growth has been increased to above 290 billion euros including Erste Bank Polska (versus approximately 290 billion euros in the previous guidance). Reflecting the favourable volume trends and a constructive interest rate environment, net interest income excluding Erste Bank Polska is now expected to grow by more than 6% (versus about 5%). Supported by continued strong demand for asset management products, fee and commission income excluding Erste Bank Polska is now projected to increase by around 10% (versus 7-9%). The improved outlook for core revenues, while cost guidance remains unchanged, is expected to reduce the cost/income ratio excluding Erste Bank Polska to below 46% (versus below 47%). All other guidance parameters remain unchanged.

Regulatory approval granted for Erste Bank Polska tender offer

Following receipt of regulatory approval, Erste Group will launch its voluntary tender offer for shares in Erste Bank Polska on Monday, 2 November 2026 with the subscription period starting on November 3. As announced on 25 September 2026, the offer is intended to increase Erste Group's current shareholding in Erste Bank Polska from 49% to more than 50%, while not exceeding 75% of the bank's shares. Maintaining a free float of at least 25% is consistent with the commitment Erste Group made to the Polish Financial Supervision Authority (KNF) in connection with the acquisition of its 49% stake in January 2026.

The offer price will be approximately PLN 713 per share. As with the acquisition of the initial 49% stake, Erste Group intends to fully fund the transaction from internal resources and expects to maintain a CET1 ratio above 14.25% following completion of the offer. The subscription period is expected to remain open for 30 days and may be extended in accordance with applicable regulations. Settlement is anticipated in December 2026. Completion of the offer will be subject to sufficient shares being tendered to increase Erste Group's stake above 50%, while remaining below the 75% threshold to preserve a free float of at least 25%.

Integration of Erste Bank Polska well on track

Erste Group continued to advance the integration of Erste Bank Polska in line with plan. At the start of September, Erste Operations officially opened its new operations centre in Poland, which now provides Erste Bank Polska with back-office and support services that had previously been delivered by the bank’s former majority owner. The successful transition of these services represents a further step in integrating the bank more fully into Erste Group’s operating model.

The integration of Polish asset manager Erste TFI into Erste Asset Management was completed on October 15. Through this intra-group transfer, the Polish asset management business now operates under the umbrella of Erste Asset Management. Based on figures as of the end of the third quarter, Erste TFI adds 8.0 billion euros in assets under management, bringing Erste Asset Management’s total assets under management to 120.3 billion euros.

About Erste Group

Erste Group is the leading banking group in Central Europe. It serves more than 23 million customers through its eight banks in its core markets: Austria, Poland, Czech Republic, Slovakia, Romania, Hungary, Croatia and Serbia.

Erste Group offers private, corporate, and institutional clients a broad range of banking and financial services – from retail and private banking to corporate and transaction banking, as well as asset management. Around 55,000 employees contribute to the Group’s success. Since its founding as the first Austrian savings bank in 1819, Erste has stood for financial inclusion and the promotion of economic prosperity.

For the first three quarters of 2026, the group reported a net result of 3.1 billion euros, while its CET1 ratio stood at 15.0%. Its total assets amounted to 462.5 billion euros.

You can find more information on Erste Group at: http://www.erstegroup.com