Investor information 2020

24.04.2020 - Erste Group Bank AG has received a MREL requirement for the Austrian Resolution Group 

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) andcalibrated 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 group1, must comply with a MRELrequirement equivalent to 14.90% of total liabilities and own funds (TLOF) of the Austrian resolution group startingimmediately. 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 subordinatedinstruments such as regulatory capital, subordinated debt and senior non-preferred debt. The subordinationrequirement 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 bySRB 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:

These requirements are in line with our expectations. Based on balance sheet data for the Austrian resolutiongroup as of 31 December 2019 and SRB’s 2018 MREL Policy, Erste Group Bank AG complies with the abovementionedtotal MREL and subordination requirements.

The remaining MPE resolution groups (CZ, SK, RO, HU) of Erste Group are going to announce their MRELrequirements individually after receiving the respective notification letters. The Croatian (HR) resolution group willnot be subject to a binding MREL requirement in 2020.