Funding Strategy

Erste Group´s prime liquidity source is the large surplus of customer deposits the bank has due to its strong market position in Austria and the CEE countries where it is active.

Debt Structure as of 31.03.2021

The growing international activity of Erste Group led it to develop alternative sources to the classic primary funding through customer deposits. The bank employs a wide range of funding sources and programmes to meet the funding requirements of the Group, its subsidiaries and the Austrian savings banks. The bank is active in Austria and internationally as a private placement issuer as well as making public issues in varying currencies, maturities and structures. The largest portion within securitised debt is made up of mortgage covered bonds which represent ca. 40%, followed by senior and tier 2 notes. The mentioned seniorities constitute approximately 90% of outstanding bonds.

Increase in debt securities issued exclusively driven by CP business of New York branch, while increased MREL-related issuance leads to rise in stock of senior unsecured bonds

Maturity Profile as of 31.03.2021

On the issue side, the current financial year began with the successful placement of a 10-year senior preferred note in the amount of EUR500 million at MS+55bps, and seamlessly followed on from the issuing activities in November of the previous year, which are to been asprefunding for the current financial year. The total refinancing volume for 2021 is at previous year's level, with a clear focus on seniorpreferred instruments.