Erste stock first listed on Vienna Stock Exchange on 4 December 1997.

Erste's initial public offering (IPO) was realized through a listing on the Vienna Stock Exchange 25 years ago, on 4 December 1997. The funds raised by going public in 1997 and through subsequent offerings helped finance Erste Group's growth in Central and Eastern Europe, as well as investments into market-leading technology and digital innovations.

With a volume corresponding to around 510 million euros, Erste's 1997 IPO marked the largest share issue in Austrian stock market history up to that time. Together with later supplemental public offerings, the IPO played a key role in Erste's growth from a regional savings bank focused on the Vienna region to being CEE'S leading financial services provider. Erste Group now services around 16 million customers in seven core markets across the region.

Willi Cernko, CEO Erste Group Willi Cernko, CEO Erste Group Erste Group

'Erste's IPO 25 years ago laid the foundation for a success story. Erste took the right step and raised capital through the stock exchange for major acquisitions in the 2000's. Thanks to this expansion, Erste Group has advanced to become the leading banking group in the eastern part of the EU,' explains Willi Cernko, CEO of Erste Group.

Strong growth over 25 years

The stock market listing in December 1997 was also the starting shot for Erste's expansion into Central and Eastern Europe. 'Erste Bank der oesterreichischen Sparkassen AG' acquired financial institutions in Hungary (1997 and 2003), the Czech Republic (2000), Croatia (2000-2002), Slovakia (2000), Serbia (2005) and Romania (2005). In addition to these core markets, further subsidiaries of savings banks and other Erste Group companies were created in Moldavia (1998), Slovenia (1999 and 2006), Bosnia and Herzegovina (2006), North Macedonia (2008) and Montenegro (2009).

Since it first listed on the Vienna Stock Exchange a quarter-century ago, Erste Group's total assets have grown nearly sevenfold to over 335 billion euros as of September 2022. The banking group's market capitalization has also grown strongly, from the equivalent of 2.03 billion euros at the end of 1997 to over 12.72 billion euros as per 30 November 2022. Similarly, the number of Erste employees has grown nearly fivefold over the past 25 years, with the share of those working for Erste outside of Austria rising from 17% to 65% over the time period.

That growth has benefitted not only the bank's customers and employees, but also its shareholders. An investor who purchased the equivalent of nearly 1,000 euros in Erste shares on the stock's initial listing in December 1997 would have realized a total shareholder return (share price rise and dividend payouts) of 298% as per the stock's closing price on 30 November 2022. During the same period, Austria's blue-chip ATX rose by 153%, while the banking stock index EURO STOXX Banks declined by 54%.

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Learn more about Erste's IPO on the following page: www.erstegroup.com/ipo

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