Erste Group Bank (EBS) investor relations material

Executive summary

• Net profit for Q1 2026 reached up to EUR 944 million, up 18.2% year-over-year, driven by the consolidation of Erste Bank Polska and strong core market performance, despite a sequential decline due to seasonality.

• Operating profit and income set new records, supported by robust net interest income, fee growth, and trading results, with Poland contributing significantly.

• Integration of Erste Bank Polska contributed positively, with EUR 30 million in integration costs and extraordinary items from consolidation expected to fade in coming quarters.

• Return on tangible equity was around 19%, with EPS growth projected above 20% for the year, adjusted for one-offs.

• Guidance for 2026 is fully confirmed despite geopolitical and macroeconomic uncertainties.

Financial highlights

• Net interest income (NII) ex-Polska/EBP grew 6.5% year-on-year; total NII increased up to 42.8% year-on-year, with EUR 681 million from Poland.

• Net fee income ex-Polska/EBP up 7.3% year-on-year; total net fee and commission income grew 23.7%, including EUR 128 million from Poland.

• Operating result improved up to 48.7% to over EUR 2 billion; cost/income ratio improved to 45.0%, in line with guidance.

• Risk costs ex-Polska/EBP at 16 bps; reported risk costs at up to 68 bps due to a one-off ECL provision of EUR 302 million from Polish consolidation.

• Loan book exceeds EUR 275 billion; customer deposits above EUR 314 billion, up 24.4% year-to-date, mainly from Poland.

Outlook and guidance

• Full-year 2026 targets confirmed: NII above EUR 11 billion, fee income around EUR 4 billion, cost guidance at EUR 7 billion, and loan growth above 5%.

• Risk cost guidance for 2026 remains at 25–30 bps, excluding the one-off Polish ECL provision.

• CET1 ratio target set at 14.25%, with actual CET1 ratio at up to 14.8% after EBP consolidation, supporting capital allocation and shareholder returns.

• Asset quality expected to remain stable, with NPL ratio around 2.4% and coverage near 70%.

• EPS uplift of over 20% expected for 2026, with adjusted net profit target above EUR 4 billion.