Erste Group Bank AG: has received a MREL requirement for the Austrian Resolution Group

Vienna (pta030/24.04.2020/17:10 UTC+2) The Austrian Financial Market Authority today notified Erste Group Bank AG about its MREL requirement (Minimum Requirement for own funds and Eligible Liabilities) set by the Single Resolution Board (SRB) and calibrated on balance sheet data as of 31 December 2017 and the Bank Recovery and Resolution Directive 1 (BRRD1).

Erste Group Bank AG, as the resolution entity of the Austrian resolution group , must comply with a MREL requirement equivalent to 14.90% of total liabilities and own funds (TLOF) of the Austrian resolution group starting immediately. The MREL requirement would be equal to 27.49% in terms of risk-weighted assets (RWAs).

In addition, a minimum subordination requirement was set at a level of 10.27% of total liabilities and own funds (TLOF), thereby specifying the amount of the total MREL requirement that must be met with subordinated instruments such as regulatory capital, subordinated debt and senior non-preferred debt. The subordination requirement equals 18.94% in terms of risk-weighted assets (RWAs).

The total own funds and eligible liabilities of the Austrian resolution group as of 31 December 2017 (as applied by SRB for the MREL calibration) amounted to EUR 134.3 billion, RWAs to EUR 72.8 billion.

The table below summarises the current MREL and subordination requirements:

Requirements for Austrian Resolution Group based on December 2017 data
Total MREL: 14.90% in % of TLOF, 27.49% in % of RWAs
Subordinated MREL: 10.27% in % of TLOF, 18.94%in % of RWAs

These requirements are in line with our expectations. Based on balance sheet data for the Austrian resolution group as of 31 December 2019 and SRB's 2018 MREL Policy, Erste Group Bank AG complies with the above-mentioned total MREL and subordination requirements.

The remaining MPE resolution groups (CZ, SK, RO, HU) of Erste Group are going to announce their MREL requirements individually after receiving the respective notification letters. The Croatian (HR) resolution group will not be subject to a binding MREL requirement in 2020.

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Emitter:	Erste Group Bank AG Am Belvedere 1 1100 Wien Austria
Contact Person:	Thomas Sommerauer/ Simone Pilz
Phone:	+43 (0)5 0100 - 17326
E-Mail:	thomas.sommerauer@erstegroup.com
Website:	www.erstegroup.com
ISIN(s):	AT0000652011 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)
Other Stock Exchanges:	Bucharest Stock Exchange, Prague Stock Exchange