Strong operating performance and rising demand for loans in the first half of the year

• Loan volume growth of +6.3% YTD to 191.5 billion euros
• Low risk costs in all markets, NPL ratio at 2.2%
• Strong net interest income reflects lending growth and changing interest rate environment

Erste Group Bank AG reported a strong operating result of 1.86 billion euros in the first half of 2022 (up 10.3% year-on-year). Net interest income increased by 15.9% to 2.84 billion euros on the back of continued solid loan volume growth, especially in the corporate segment and for mortgage loans, as well as further interest rate increases in Czechia, Hungary and Romania. Net fee and commission income increased by 10.5% year-on-year to 1.21 billion euros. The banking group generated a net profit of 1.14 billion euros in the first six months of 2022 (H1 2021: 918 million euros). Erste Group's strategy focuses on the financial health of its customers. A first part of this approach involves a broadly based initiative to create affordable housing in the region. By 2030, the group plans to finance a total of up to 15,000 apartments in the subsidized affordable segment in CEE.

"The geopolitical situation and high inflation are clouding the outlook in Europe.Nevertheless, the economies in the Eastern part of the EU have so far shown resilience - with comparably solid public finances, an unbroken willingness to invest on the part of companies, as well as a labor market development that remains so far and consumer confidence that continues to be positive," said Willi Cernko, CEO of Erste Group Bank AG.

"Our task as a bank will be to stand by the people in our region even in difficult situations and to address their financial health. Our solid business model and strong capitalization prove that we are able to do this. As a first step, we will send out a clear signal in this regard by pursuing an extensive housing initiative through which we intend to finance a total of up to 15,000 affordable rental apartments in our CEE markets over the next years."

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