Erste Group Bank AG (EBS) Earnings Call Transcript & Summary

Ladies and gentlemen, dear shareholders, I'd like to welcome you very cordially. My name is Friedrich Rödler. I'm the Chairman of the Supervisory Board of Erste Group Bank AG. And pursuant to Section 116 (1) of the Austrian Stock Corporation Act, I take the chair and open today's 28th Annual General Meeting, AGM of shareholders of Erste Group Bank AG. Now for the protection of shareholders and other participants, the management board have decided to make use of the existing legal provision to hold a virtual AGM. Today's annual general meeting will be held as a virtual annual general meeting in accordance with the COVID-19 Act and the COVID-19 ordinance, taking into account the interests of both the company and the participants, and will be broadcast in its entirety on the Internet. The holding of the Annual General Meeting as a virtual AGM in accordance with the COVID-19 ordinance on corporate law leads to certain changes and modifications in the course of the AGM, as well as in the exercise of the rights held by shareholders. All this was presented in the convening notice and the participation information made available on the company's website and which Brix, notary public -- Mr. Brix, notary public, will discuss in detail below. He will first be presented with the reports and particularly the management board presentation and proposed resolutions on all agenda items in 1 go. Following this, the special proxies, proxy holders will take the floor to read out any proposed resolutions. This will be followed by the general debate, i.e., the reading out and answering of questions put, by members of the management board. At this point, I would like to inform you, dear shareholders, that you can already submit your questions to the management board by using the following e-mail address: [email protected]. At around 1 p.m., I will interrupt the annual general meeting for an approximately 25-minute break. May I ask you to submit your questions by the end of this break. Now after the questions on all agenda items have been answered, the respective motions will be voted on in the order of the agenda. I note the following: The convening of today's AGM was published in due time in compliance with the provisions of Section 106 of the Stock Corporation Act in the Wiener Zeitung of April 20, 2021, and also that furthermore pursuant to Section 107, paragraph 3 of the Stock Corporation Act, it was electronically distributed on your PM level by press release on April 20, 2021 as well. On April 20, 2021, also in accordance with the new provisions of the stock exchange law, the transmission of the convening notice for the shareholders was arranged by a so-called chain of intermediaries pursuant to Section 182 of the Stock Exchange Act 2018. I note that no motions for additions to the agenda and no other proposed resolutions were received from shareholders, and therefore were not required to be published on the company's website. Therefore, at today's AGM, only the agenda items announced in the notice of the AGM on April 20, 2021 can be dealt with and only the candidate for election to the Supervisory Board, agenda item 6, that was announced on the company's website on April 20, 2021 can be voted on. The documents to be disclosed pursuant to Section 108, Paragraphs 3 and 4 of the Stock Corporation Act were made available on the company website on April 20, 2021. In particular, information on the organizational and technical requirements for participation pursuant to Section 3, Paragraph 3 in conjunction with Section 2, Paragraph 4 of the company's act as well as the COVID-19 ordinance, then a questionnaire and a power of attorney and instruction form for special proxies pursuant to Section 3, Paragraph 4 of the COVID-19 ordinance -- the Corporate COVID-19 ordinance. Notary public Mr. Brix is requested to certify the resolutions of today's AGM, to supervise the execution of the votes, and to report the minutes in accordance with Section 120 of the Stock Corporation Act. I may now ask notary public Mr. Brix to explain the modalities for exercising shareholders' rights at today's virtual shareholders' meeting and the course of the shareholders' meeting, which have been made available on the company website. Mr. Brix, you have the floor.

Thank you very much, Mr. Chairperson, dear shareholders. In the notice convening the AGM on April 20, 2021, it was announced that today's AGM would be held as a virtual AGM without the physical presence of shareholders. In addition, on April 20, 2021, information was published on the company website regarding the organizational and technical requirements for participation in the AGM pursuant to Section 3, Paragraph 3 in conjunction with Section 2, Paragraph 4 of the corporate COVID-19 ordinance. Today's Annual General Meeting will be held in the presence of the Chairman of the Supervisory Board, Friedrich Rodler, the First Deputy Chairman of the Supervisory Board, Johan (sic) [ Jan ] Homan, the Chairman of the Management Board, Bernhard Spalt, the members of Management Board, Ingo Bleier, Stefan Dorfler, Alexandra Habeler-Drabek, David O'Mahony, Maurizio Poletto and Thomas Schaufler. The 4 special proxy holders, Nikolaus Adensamer, attorney at law, Michael Knap, Christoph Nauer, attorney at law, and Ewald Oberhammer, attorney at law, Richard Wolf, attorney at law as legal adviser and myself as a certified notary public. As representative of the auditors Sparkassen-Prüfungsverband, Gerhard Margetich is available to us by telephone and e-mail for any questions. He is following the AGM via the livestream. As representative of the auditors PwC Wirtschaftsprüfung GmbH, Dorotea Rebmann can be reached via telephone and e-mail to answer any questions. She is also following the AGM via the live stream. As representatives of the FMA, the state commissioners received an invitation to today's AGM and have the opportunity to follow it via the live stream. The so-called state commissioners can communicate with us during the AGM and, if need be, contact the management board or the Chairman of the AGM. How are shareholder rights exercised and enforced today? The exercise of voting rights, the right to propose resolutions and the right to object, all of this is effected exclusively by granting power of attorney and issuing instructions to one of the special proxies appointed by the company. The right to information can be exercised in today's virtual AGM by the stockholders themselves or by their authorized representatives via electronic communication. And now to the broadcasting and the way this AGM will be conducted. Pursuant to Section 3, paragraph 4 of the corporate COVID-19 ordinance in conjunction with Section 102, paragraph 4 of the Austrian Stock Corporation Act, the Annual General Meeting will be broadcast in its entirety and this applies to the picture and the sound in real time on the Internet in an effort to include Erste Bank AG offers you 2 alternative access modes through the Internet, transmission with picture and German language. Please select 1 on the Erste Group Bank AG website, video webcast hauptversammlung 2021 or alternatively stream video webcast, annual general meeting. So one is in German, hauptversammlung, the other is English, annual general meeting. If your access has any trouble during the transmission, please switch to the other access mode. Today's AGM will be conducted in German. The entire AGM will be interpreted from German into English. The live stream for this can be accessed on the English language website. In addition, the German stream will also be available in sign language for the duration of the entire AGM. By broadcasting the AGM on the Internet, all shareholders who so wish will have the opportunity to follow the proceeding of the AGM in real time through this acoustic and visual link, and to follow the presentations made by the management board, and the answers to shareholders' questions and the voting procedure, in real time. Please note that the live transmission of the virtual AGM does not enable remote participation. Section 102, Paragraph 3 to the Stock Corporation Act and remote voting Section 1, 2, 3 of the Stock Corporation Act and Section 126 of the Stock Corporation Act and that the transmission on the Internet is not a 2-way connection. The individual shareholder can therefore only follow proceedings of the annual general meeting. Now how is the right to information exercised? Specifically shareholders and their proxies are authorized to exercise the right to information, and the right to speak. They also have the opportunity during the AGM to submit their questions in writing electronically to the management board within a certain time window after the opening of the AGM, exclusively via the email address that is shown now: [email protected] At today's AGM, these questions will be read out by the Chairman of the Supervisory Board and then answered by the management -- by the management Board. Please use a simple e-mail to the e-mail address [email protected] for this purpose. You are requested to send this e-mail from the e-mail address provided in the proxy statement, in order to establish a quick vetting of your identity. This e-mail must state the shareholder's first and last name or company name, the shareholder's date of birth or company register number and the securities account number, to enable the management board to determine the shareholder's identity in compliance with the securities account confirmation. Please end your e-mail with your name, so-called replica of the named signature pursuant to Section 13, Paragraph 2 of the Stock Corporation Act. Shareholders thus have the opportunity to react themselves to developments at AG -- at today's AGM, for example, by asking a question or a supplementary question. The Chairman will structure proceedings of the AGM in terms of time, just like in a physical meeting, and will interrupt the AGM at around 1 p.m. for a break of around 25 minutes. You are asked to submit your questions by the end of this break, as has been mentioned before. Now to the special proxies. Shareholders also have the opportunity to amend their instructions to special proxies, in particular on submitting motions or resolutions, voting or amending their instructions regarding voting on one or more items of the agenda, but also on raising objections to one or more items of the agenda to the relevant special proxy, even during the AGM up to a certain point. To do this, please use a simple e-mail to the e-mail address of your proxy holder to whom you have also sent the power of attorney. These are shown and are as follows: [email protected] [email protected] [email protected] [email protected] In the simple e-mail, the person of the shareholder, i.e. first name and last name or company name of the shareholder, date of birth or company register number of the shareholder must be stated. In order to enable the proxy holder to establish the identity and also combines the proxy, please end your e-mail with your name. Again, replica of the name signature pursuant to Section 13 Paragraph II of the Stockholders Act and also state your depository or securities account number, as already mentioned. The e-mail is to be sent from the e-mail address indicated in the proxy. Please note that during the AGM, communication with your proxy is only possible by e-mail. And in particular, that it is not possible to reach your proxy by telephone. The time up to which instructions on submitting motions, voting and raising objections are possible will also be determined by the Chairman in the course of today's AGM. This time, it is expected to be close to the end of the general debate. It should be noted that it may be necessary to briefly interrupt the virtual AGM in order to deal with questions to the management board received during the AGM and instructions from the shareholders to the proxies. All right. This is a summary of today's virtual annual general meeting, ladies and gentlemen, as published on the company's website; in particular, in the document Information on the Organizational and Technical Requirements For Participation pursuant to Section 3, Paragraph 3 in connection with Section 2, Paragraph 4 of the corporate COVID-19 ordinance.

Well, thank you very much, notary public Mr. Brix, for these statements. As Chairman, I order that today's annual general meeting be conducted in the manner announced in the notice of meeting and the information made available online regarding organizational and technical requirements for participation pursuant to Section 3, Paragraph 3 in conjunction with Section 2, Paragraph 4 of the corporate COVID-19 ordinance and presented by notary public Mr. Brix. The list of participants will be completed before the first voting, signed by myself and the presence will then be announced to you. The list of participants will be made available electronically for inspection by the special proxies present in the room. And we now move on to the agenda. Item 1 of the agenda, presentation of the adopted annual financial statement, the management report, the consolidated corporate governance report to the management board, the consolidated nonfinancial report, the proposal for the appropriation of profits and the report of the Supervisory Board on the 2020 financial year and presentation of the consolidated financial statements and the group management report on the 2020 financial year. Aforementioned documents were made available on the company website in accordance with Section 108, Paragraphs 3 and 4 of the Stock Corporation Act. The annual financial statements and management report prepared by the management board and the consolidated financial statements and group management report for the 2020 financial year were audited by Sparkassen-Prüfungsverband, the savings banks' auditing association, as statutory auditors, and by PwC Wirtschaftsprüfung GmbH, which was appointed by -- as an additional auditor and issued its own unqualified audit opinion. PwC Wirtschaftsprüfung GmbH was also asked to perform a limited audit of the 2020 consolidated corporate governance report, [ mainly ] to verify compliance with Rules 1 to 76 of the Austrian Corporate Governance Code. Deloitte Audit Wirtschaftsprüfungs GmbH was tasked with a limited audit of the 2020 consolidated nonfinancial report. The audit did not lead to or result in any objections. The Supervisory Board examined the annual financial statements, the management report, the consolidated corporate governance report, the consolidated nonfinancial report, the consolidated financial statements and the group management report, and noted them with approval. It has also approved the annual financial statements, which are thus deemed adopted. No further approval is, therefore, required at today's AGM. Furthermore, the management board and Supervisory Board have prepared a remuneration or compensation report for the first time for the 2020 financial year. Ladies and gentlemen, dear shareholders, I would now like to take a brief look back at the past financial year 2020 from the perspective of the Supervisory Board. Erste Group's core markets in CE or Central and Eastern Europe were severely affected by the COVID-19 pandemic. But despite this exceptional and difficult environment, Erste Group was able to successfully hold its ground in the market in the financial year 2020, which is also a confirmation of Erste Group's strategy, from the Supervisory Board's perspective. Even in an environment characterized by economic slowdowns and downturns, Erste Group recorded growth in customer loans and deposits in all core markets. Based on -- or equipped with solid capital base, risk provisions were formed early on, even though loan quality hardly deteriorated in the past financial year. Erste Group and its subsidiary [ banks ] have played and will continue to play an important role in managing economic consequences of the pandemic and in handling the conflicts in very diverse government aid programs and the moratoria in our core markets. Now in terms of an accompanying supervision, the supervisory board kept itself continuously and comprehensively informed about the measures taken by the management board in this context. And this is a process that was [ invoked ] and continued in 2021. It has always been a special concern of Erste Group to always be there for its customers even in difficult situations and, if necessary, to look for an individual solution. The Supervisory Board was impressed by the professionalism, the speed and flexibility with which Erste Group's management board and employees responded and continued to respond to these challenges in 2020 and beyond. Accompanied by a great team of our health center and Dr. [ Hurdkel ], a working environment was created that allowed operations to continue in a difficult environment with only minor restrictions. These developments naturally have had an impact on the management board's proposal for the appropriation of profits for 2019, which the Supervisory Board addressed in several meetings. The Supervisory Board took into account the ECB's recommendation of March 27, 2020, not to pay a dividend for 2019 initially until October 1, 2020. On July 27, 2020, this ECB recommendation was extended until January 2021. On December 15, 2020, the ECB issued a further recommendation asking [Technical Difficulty] [Foreign Language] to refrain from paying dividends until September 30, 2021 or to limit any dividends according to specified criteria. The payment of a dividend for the financial year 2019 in February 2021, in the amount approved by the AGM on November 10, 2020, would have been contrary to this new ECB recommendation at its meeting on February 8, 2021. The Executive Committee of the Supervisory Board, therefore, concurred with the Management Board's determination or its statement that the condition for the payment of a dividend for the 2019 financial year is not met. And therefore, that the profits for the 2019 financial year would be carried forward in its entirety to a new account. Let me now turn to HR changes occurring in the past fiscal year. Now in 2020, there were several changes in the management board. After more than 25 years of service in our banking group, Peter Bosek resigned from the management board as of December 31, 2020, to take up a new challenge abroad. The Supervisory Board would like to express its sincere thanks for his many years of successful service to Erste Group. Through his development, he made a significant contribution as one of the fathers, so to speak, of our digital platform, George. We wish him all the best and much success in his new position. As of December 31, 2020, Ara Abrahamyan also stepped down from his mandate. And I would also like to express my sincere thanks to him for his work for Erste Group. On the 15th of October 2020, the Supervisory Board extended Alexandra Habeler-Drabek's Management Board mandate to last until the 31st of December, 2023. Thomas Schaufler and Maurizio Poletto were appointed by the Supervisory Board in October 2020 as additional members of the management board with effect from the 1st of January, 2021 until the 31st of December, 2023. Now there were also changes to the Supervisory Board in the 2020 financial years -- year. The mandates of Maximilian Hardegg, Gunter Griss and Wilhelm Rasinger expired at the end at the AGM on November 10, 2020. The mandate of Maximilian Hardegg was extended. Gunter Griss was no longer available for reelection due to the age limit for Supervisory Board members stipulated in the articles of association. I would like to thank him very much for his many years of service on the Supervisory Board of Erste Group Bank AG. Gunter Griss was not only a proven legal expert and recognized specialist in his field, but also a friend of the savings bank sector and closely tied to it for many years. We hope to be able to continue to count on his solidarity and commitment. Wilhelm Rasinger passed away in December 2020 almost immediately after his mandate expired, after a short and serious illness. He was a member of the Supervisory Board of Erste Group Bank AG for more than 15 years. And we knew Wilhelm Rasinger as a person of courage and intellect on whose independent spirit we could always count. He always made important contributions to our discussions with his expertise, his vision, and his compelling arguments, and we were lucky to have him in our midst. On occasion of his departure from the Supervisory Board in November of last year, I was also very pleased to receive his words of appreciation in the form of a letter, which I was allowed to read out at the last AGM at his personal request. We are pleased to welcome 2 new and very experienced personalities to our team, Friedrich Santner and András Simor, who were elected to the Supervisory Board at the AGM on November 10, 2020. Today's AGM marks the end of the mandate of John James Stack, or Jack Stack as we know him here. He was also no longer available for reelection due to the age limit set up in the articles of association. It's very difficult for me in the short time available here to adequately express the thanks we owe to Jack Stack for his contribution to and commitment -- and involvement with our banking group. Jack Stack made a valuable and significant contribution to the development of our group and CEO of Ceská Sporitelna, later as its Chairman of the Supervisory Board and also as a member of the Supervisory Board of Erste Group Bank AG. His knowledge, his experience, his expertise, but also his affection and commitment to the people working in this banking group were unique. I hope that we can continue to count on his support to Erste Group and that he will remain with us as a friend. Now Michael Schuster we are proposing as a new member of the supervisory board for this AGM. Well with him, we would like to continue on our chosen path towards digitization, innovation and gain new knowledge and experience in these areas for the Supervisory Board. With regards to the composition and independence of the Supervisory Board as well as the focus of its activities, I refer to the consolidated corporate governance report prepared by the management board and audited by the Supervisory Board. For the activities of the Audit Committee, I refer to its separate report. The Supervisory Board was kept informed promptly and comprehensively by the management board at a total of 43 supervisory board and committee meetings. This enabled us to perform the duties incumbent upon us under the law, the articles of association, the corporate governance code in full, and to ensure proper conduct of business. The annual financial statements, consisting of the balance sheet, income statement, notes and management report as well as the consolidated financial statements with management report of 2020 were all audited by the Savings Bank Audit Association as a statutory auditor and the PwC Wirtschaftsprüfung GmbH, the additional auditor appointed, and were issued with an unqualified audit opinion. Representatives of the 2 auditors attended the meetings of the Audit Committee and the Supervisory Board, at which the annual financial statements were discussed and provided explanations of the -- or concerning the audits performed. Following its own review, the Supervisory Board concurred with the results of these audits and agreed with the proposal for the appropriation of profits for the 2020 financial year. PwC Wirtschaftsprüfung GmbH was also tasked with the voluntary audit of the 2020 consolidated corporate governance report and the 2020 remuneration report. And as I've already mentioned, Deloitte Audit Wirtschaftsprüfungs GmbH was tasked with an audit of the 2020 consolidated financial report.

[Foreign Language] [Interpreted] Reasons and purposes were securities trading, market making and authorized share buyback programs. The transactions took place on exchange and off exchange. For the purpose of securities trading and market making, 4,112,029 shares representing 0.96% of the capital stock were acquired in the aforementioned period. A total of 3,929,153 shares representing 0.91% of the share of the stock capital were sold. The total price -- purchase price amounted to EUR 95,589,122.50. And the total selling price EUR 87,134,999.50. The respective gain or loss was recognized in the net trading income. As of 3rd of April, 2021, Erste Group Bank again held a short position of 39,597 owned shares, which was covered by borrowing transactions. As part of authorized share buyback programs in the reporting period, 2,707,499 shares, representing 0.63% of the capital stock, were acquired. A total of 2,363,535 shares representing 0.55% of the capital stock were sold. The total purchase price amounted to EUR 57,723,747. And the total selling price EUR 41,370,798. The respective gain or loss was recognized in the income statement. As of April 30, 2021, treasury shares amounted to 1,572,337 shares, representing 0.37% of the share capital.

I thank Mr. Dorfler for this presentation. Now we continue with the report of the management board, and I would like to ask Mr. Spalt to give us his presentation on the business year 2020.

Thank you, Mr. Chairman. Dear shareholders, dear shareholder representatives, I would like to welcome you all to our second all-digital annual general meeting from the Grand Hall at the Erste Campus in Vienna. Thank you for tuning in. While last year, it was quite strange for us to look into screens and cameras instead of faces, today, we've already become somewhat accustomed to it. This pandemic is extraordinary for all of us. It teaches us digitization and puts a lot on our plate. It has brought some people as well as companies to the limit of their existence or even cost their lives. A bank is a mirror of the economy, and so it comes as no surprise to anyone that our institution has also suffered from the consequences of the pandemic. Looking at the cultural sector, the tourism and transport industries, I'm well aware of the fact that, of course, the financial sector was not the main victim. On the contrary, unlike like during the financial crisis, banks have been an intrinsic part of crisis management this time. Erste Group supported its customers in this crisis and has taken support measures with a total volume of EUR 18.4 billion, especially in the form of deferrals. 16 million customers remained loyal to us. This is not self-evident in the crisis, unprecedented in this century in which consolidation is also taking place in the financial world. I understand this loyalty as a mandate. In line with our principle, which dates back more than 200 years, we want to help secure and increase the prosperity of our customers and thus the prosperity of the society in which we live. We want to walk the path out of the crisis together with you, our shareholders, together with our customers in order to benefit from the rebound we expect today, today, 1.5 years after the outbreak of the pandemic. Ladies and gentlemen, I believe -- no, I'm convinced that the key competitive advantage of this banking group is our 46,000 employees. This is something that I as CEO, and perhaps you as customers and shareholders have been able to experience during this crisis. Wherever possible, our branches remained opened, and we were there for our customers without any restrictions. And I think this is very important to understand. In this crisis, while we had lockdowns in which we safeguard the health of the population, banks were part of the critical infrastructure that had to be open to provide infrastructure services. Proud is a big word, but I'm very proud of our team. And I would like to thank our team. Since the beginning of this year, Mr. Rödler had already mentioned that, the management team in our banking group has changed. For Thomas Schaufler and Maurizio Poletto, it's not their first annual general meeting, but it's their first time on stage. I'm very pleased that they have been joining our team and welcome them most warmly. As you might know, we are currently working hard to prepare Erste Group for the challenges of the coming years. Topics such as further increasing efficiency, digital transformation and our growth strategy in the region, in our core business are keeping us busy. And we are quite certain that we have chosen the right path. And you might have read in the media, yes, apart from opportunities, there will be consolidation processes. There will be opportunities to acquire banks. And we have a lot of liquidity. We are strong in terms of capital, and we are very profitable. And this is why we are strong enough to look at all the opportunities offered by the market. At the same time, we are also looking more intensely at very specific issues for the future, such as how to increase prosperity in a time of low and negative interest rates, or how to deal with climate change. I'm well aware that it is a privilege to head a group of companies, and a group of companies which wants to assume responsibility and can help shape the future. Dear shareholders, let me continue with the report on the financial year 2020 and the first quarter of 2021. The corona crisis has had us firmly in its grip for over a year, sending Europe's economy into recession. The measures imposed to contain the virus, such as travel restrictions, have brought international tourism to a standstill. The manufacturing industry, on the other hand, came through the crisis quite well. And what should not be forgotten is that the swiftly implemented government measures all over Europe, be they guarantees or moratoria, short-term working skills or allowances paid by the state, made a significant contribution to ensuring that a wave of insolvencies did not set in during 2020 and hasn't set in yet. Understandably, gross domestic product in most countries declined significantly and unemployment rates and public debt have risen markedly. Against this background, our business performance in 2020, the business performance of the Erste Group was very solid. Our net loans, you can see them inserted here, increased group-wide by 3.6% to EUR 166.1 billion. Customer deposits increased, although there is no interest paid, by an amazing 9.9% to EUR 191.1 billion at year-end. As pleasing as it is that we are seen as a trusted brand and a safe haven for the money of our customers, it is challenging to invest these funds profitably in times of extremely low interest rates. If you look at the development of net fee and commission income in the current year, you will see that our advisers are really doing well. Resulting from the dynamic growth of our customer deposits, the loan-to-deposit ratio fell to 86.9% at the end of the year. That's a historic low, which was even lower in the first quarter of 2021. This will change, but I'll come back to that later on. You can also see from the chart that deposits have increased in all countries. And so have loans. In Austria, the loan volume increased by over EUR 3 billion, which is positive. We financed revolving accounts and we also financed housing, private housing. We are fulfilling our social function as a bank in this crisis and doing what the economy expects of us, granting loans. The credit tap is open and not closed. If you now look with me at the development of our operating income, you see that despite of the circumstances I have just described, net interest income improved by 1.1% to EUR 4.8 billion last year. Net fee and commission income understandably suffered last year, but it was the crisis of the century, but thanks to a very good performance in the fourth quarter only recorded a decline to EUR 1.97 billion. I think this is proof that the business model of Erste Group in all regions is robust, solid and also very future-oriented. The trading and valuation results declined heavily in the past years. If you remember, the first quarter of 2020, there was a double shock. We had the long stance of the first wave of the pandemic. And at the same time, we had an oil price shock. And this resulted in unrest on the financial market, and this is why our net trading and fair value income suffered. In the following quarters, the situation eased and we recovered some of the declines. Operating expenses have fortunately declined over the past year, which is a strategic priority. Not only in the crisis, also in future, we want to make sure that we provide our services efficiently and that cost discipline is a major element in our business model. Apart from structural changes, the improvement is, of course, also resulting from the fact that some expenses have declined as a result of the crisis. For example, elimination of business trips, but also the reduction of marketing expenses. As a result of these measures, we were able to keep our operating profits relatively stable despite the deteriorating environment. The cost/income ratio of our group remains at a satisfactory 59% and must improve. However, on our Capital Markets Day 2019, we said before the pandemic that we wanted to have a cost/ income ratio of 55% by 2024. We didn't change this goal simply due to the pandemic, but we have to make sure that our cost/income ratio is continuously improving. Once we realized the dimension and implications of the COVID crisis, we started proactive risk provisionings. Last year, we didn't know what would happen if we have worldwide lockdowns, what happens if people can't pay back their loans, what effect this will have on the economy when state measures expire. So we didn't postpone risk provisioning. In 2020, we started proactive booking of risk provisions in order not to shift this problem into the future. Whereas the risk costs for the full year 2019 were a mere EUR 39 million, we booked EUR 1.3 billion in 2020. This is 80 basis points in relation to the average traded volume. The proportion of our nonperforming loans, if you look at the balance sheet, increased only slightly from a very low 2.5% to 2.7% in 2020, 2.7%, which is also very, very low. The fact that this increase was relatively low is certainly also due to the large number of government support measures in our region. We are also well prepared for the period after the measures expire. This is evident, among other things, from our NPL coverage, which increased by more than 11 percentage points year-on-year to 88.6%. In our CE markets, in particular, our NPL coverage excluding collateral was very high. In the Czech Republic, Romania, Slovakia and Hungary, it was well above 100%. And in Serbia, it was even close to 170%. We expect an economic rebound, and we start this rebound from a very robust basis. The net result for 2020 reflects the internal influences following risk provisions. Resulting from the significant risk provisioning, net profit fell to EUR 783 million. I think this is a result when thinking about the development of our operating profit. It shows that our business model is the right one, that the region we are doing business in is the right region and the strategy that we chose is the right strategy for our customers. We are deeply rooted in the real economy and a reliable partner for our customers, be they private individuals, small and medium-sized enterprises, large companies or the public sector. Our capital development, and I already mentioned that, remained encouraging, and we had a Core Tier 1 ratio, the so-called Common Equity Tier 1 ratio of 14.2% at year-end. Our internal target ratio remains unchanged at 13.5%, well above our minimum regulatory requirements. And this prepares us for future economic downturns and also allows us to think about acquisitions in future. It is obvious that we want our shareholders to share in our profits. At the last annual General Meeting, which was held in October the previous year, a resolution was passed to pay a conditional dividend of EUR 0.75 per share, provided that no regulatory or other reasons contradict this approach. The ECB's recommendation and the Chairman already mentioned that did not permit such a distribution. Today, in line with the ECB's recommendation, we will, therefore, propose to approve a dividend of EUR 0.50 per share. In addition, I'd like to inform you that EUR 1 per share has been reserved for a potential later payment. Should the ECB lift its recommendation on the dividend restriction in the second half of the year, which is planned for September, we plan paying out this amount as well. I would like to take this opportunity to thank you, dear shareholders, for the trust you've placed in us. Thank you for investing in us and for remaining loyal to us. Let me turn to the development of the first quarter of 2021. Overall, the start of 2021 was pleasing. The operating profit improved by 10% quarter-over-quarter. Net interest income declined as expected. Allow me to remind you that the Czech National Bank, a very important market for us, the Czech Republic, was still raising the key interest rate at the beginning of the previous year before it was cut again in the wake of the corona crisis by 200 basis points to 0.25 in 3 steps. When talking about the future outlook, I will also explain that we hope that the interest landscape will recover. Net fee and commission income, on the other hand, developed excellently and amounted to EUR 540 million in the first quarter, a great result. I would like to emphasize the good development in asset management and the securities business. The trading and fair value result is back to normal after the crisis-ridden first quarter of 2020. Operating expenses have continued to decline, and despite this -- despite the fact that deposit guarantee contributions have increased. As a result, the operating profit has improved significantly, and the cost/income ratio was 60.3% in the first quarter. Only minor risk costs were booked in the first quarter. And this is what we also see in the general economic situation. We don't see any increase in insolvencies. And this is why risk costs -- although they won't stay at this low level over the year. And this is the reason why our risk costs were only of a minor basis in the first quarter. The operating income remained largely unchanged with net income showing a significant increase to EUR 355 million. The return on equity was also back in double digits in the first quarter, a very pleasing development. Owing to a very good performance in mortgage lending, net loans to customers increased by 1.1% to EUR 167.8 billion. Growth on the deposit side remained strong, increasing by 7.5% since the beginning of the year to EUR 205.4 billion. This is a record. The loan/deposit ratio thus stood at 81.7% in the first quarter. Credit quality, as already said, hasn't suffered yet from the crisis. The NPL ratio continued to remain at a relatively low level at 2.6%. Let me point out, in particular, that the initial experience after the expiry of the moratoria in almost all our countries has been significantly better than expected and doesn't give rise to a major concern and makes us optimistic for the future. Speaking of the future, let's take a look at the economic forecast for our region. The numbers you see on the left-hand side of each of the slide clearly show how the pandemic has affected the economies in our region over the past year. While Serbia was comparatively mildly affected with a GDP decline of minus 1% in 2020, the Croatian economy plunged by 8.5% compared with 2019. In Austria, the GDP decline in 2020 was also comparatively strong at 7.2%. This is not a mere coincidence. The economies are depending on tourism. Tourism restrictions affected -- heavily affected tourism. There was no city tourism. And this is why the 2 economies that I just mentioned were hardly hit. And the other economies, Czech Republic, Slovakia and Hungary, are very strong in the manufacturing industry. And these industries have almost come back to precrisis levels. If we look at 2021 and beyond, 2021 will be a year in which signs change, and we will see an economic rebound. Our economies expect a recovery across the region. The basis for optimism is, amongst other things, a moderate but steady increase in the vaccination coverage of the population. All countries are investing here. And we don't only see a decrease in infection rates but also an increase in the vaccination coverage. And on the basis of this vaccination coverage, we hope that we won't need any further lockdowns, which have hit industries so hard. And we hope that a gradual return to normality will be possible. GDP growth is expected to be strongest in Croatia at 4.5% and Serbia at 5%. However, the economies of Hungary, Romania and Slovakia should also grow by more than 4% in the current year. Only the Czech Republic is slightly lagging behind with an expected increase of 3.3%. These figures are from the month of April. I do not rule out that this forecast will be revised upwards again. In any case, I look forward with confidence to the second half of the year when many things will have recovered, people and the economy. Against this background, we are very confident of increasing our net income in 2021. Among the factors enabling this are economic recovery, the decline in risk costs and an improvement in operating profit. We expect net loan growth to continue to increase in a low to mid-single-digit percentage range. This development should keep net interest income stable despite negative interest rates in the eurozone. As far as the second important revenue component is concerned, net fee and commission income, we are aiming at an increase in at least the mid-single-digit percentage range. As in 2020, fund management, securities business and insurance brokerage should have a positive impact. Given the average result in 2020, we expect a higher net trading and fair value income. Of course, this depends on the development of the financial market. Although accurate forecasting is difficult in the current COVID-19 environment, as the group assumes risk cost of a maximum of 65 basis points of average gross customer lending for 2021, an adjustment of this forecast and a hope that a downward adjustment is dependent on the progress of the vaccination coverage, because the development of the health situation will determine the end of the lockdowns, investments of companies and thus creating growth again. Due to the expected expiry of government support measures, the NPL ratio is expected to increase from 2.6% to around 3% to 4%. The CET1 ratio should remain at a stable and solid level. Our target ratio will remain unchanged at 13.5%. The other revenue components will remain stable by and large. Overall, operating revenues are expected to rise again in 2021. Operating expenses are expected to increase slightly in 2021, partly due to reemerging wage pressures in all Erste Group markets. In addition, Erste Group will continue to invest in IT and thus in its competitiveness in 2021. Progressive IT modernization, back-office digitalization and the expansion of the digital platform, George, will be the focus. Since February of this year, George has also been available in Hungary, it's very successful there, enabling customers in the 6 largest core markets to use our digital platform. In total, we already have over 6 million users in these 6 countries. We will also to continue to develop -- will also continue to develop George and add consulting and other product elements. For example, for a few weeks now, it has been possible to take an accident insurance in Austria or supplementary private pension insurance in the Czech Republic through George. Using George Pro, small businesses can structure current income and expenses, or larger projects since mid-April. In addition, the new plug-in allows to manage invoices and analyze cash flows of the next month. Ladies and gentlemen, I hope that I've been able to give you a good overview of 2020 and the first quarter of 2021, and that I've been able to justify my optimism for the current financial year in a comprehensive way. Before ending my report, please give me another 5 minutes of your attention for a topic that is very important to me. Our bank looks back to a history of more than 200 years and according to the Articles of Association is responsible for wealth in the region. There was also -- always a tightrope walk between the [ regulate ] economic cycle and societal changes. We continue to play our role in a responsible way, responsible towards our shareholders, our customers. And we will stay in the center of the company. The crisis has been hard, but I hope the crisis is marking a turning point. There is a reorientation of thinking between global economies and local resilience. We have become more flexible. We can manage unprecedented situations. And at the same time, we are longing for physical meetings. And we are well aware what personal freedom means. And sustainability in the ecological sense, in the social sense and in the sense of responsible management are an absolute must in the post-corona world. And I'm convinced that economic success can only be possible by taking social and ecological responsibility. Environmental protection, social issues and proper corporate governance, i.e., the password (sic) [ acronym ] ESG, environmental, social and governance, will therefore be a key strategic focus for Erste Group in this new age. We have been contributing to societal development with our social banking initiatives. And we've had projects for a good 5 years. With funding totaling almost EUR 400 million, we've financed 36,000 customers, 6,000 small businesses, 8,000 farmers and entrepreneurs as well as 700 social enterprises and nonprofit organizations [ and the homonga ] customers of the social banking department in our group. And this is no coincidence. It's responsibility in action at our bank. All these activities are based on funding of Erste Group and are building lives, building existences through this funding. Ladies and gentlemen, we used the year 2020 to prepare for another focus, the E of ESG. We've set up a responsible finance policy and realigned our lending rules. The recently communicated decision to phase out of coal financing by 2030 is the result of this policy. I'm well aware that there are viewers who would like to see a faster pace. I understand that. But at the same time, I ask you to understand that, as a bank, we have an obligation to accompany our customers carefully through this transformation. We have long-term contracts. We have long-term trust relationships with customers. We all have to play roles on our path towards climate neutrality and a sustainable life on this planet. Turning off credit lines too quickly would either mean that we cause damage and the transformation cannot take place, or maybe radiators in some homes would turn cold very quickly. Social banking means responsible banking. Ladies and gentlemen, I'd also like to talk about EU's EUR 750 billion recovery fund will unleash economic forces, and we are preparing to strengthen that, and this will be a growth factor, a growth factor that will be sustainable with green jobs, and we are ready and preparing for it. Following the placement of our own green retail bond for S IMMO and the placement of the first green and profitability linked bond for Verbund, we recently issued our first sustainable bond of our own. It is worth EUR 0.5 billion and was more oversubscribed than 2x. The proceeds of the issue will be used to finance projects defined as qualifying under the sustainable financial framework. These include commercial real estate projects in Romania classified as green, and subsidized housing projects in Austria certified according to both environmental and social criteria. We expect this funding activity to continue to grow and increase for the rest of the year. And the focus of bank insurance will therefore largely be on ESG issues. And we're not excluding ourselves either and are making our contribution by [ successive ] reducing our own carbon footprint to climate neutrality. Since our countries signed a Paris Agreement, this figure has now been reduced by 25%, meaning our own carbon footprint. Our first campus here is already powered by 100% green electricity. And we reuse rainwater and district cooling. We have eliminated 85,000 disposable cups since the middle of the previous year and reduced CO2 emissions by 11.6% to 70 -- 57,492 tonnes. Energy consumption, that is fossil fuel consumption, was reduced by 5.3% to 340 gigawatt hours. And in December 2020, we set up 12 floors above us here, a photovoltaic system with 764 modules covering an area of about 2,000 square meters. This turns the Erste Bank into a small power plant, able to produce 250,000 kilowatt hours. This is equivalent to the energy consumption of about 5 branches or 125 households. Dear shareholders, I know that all of this is not enough, but it is a beginning. We will continue. We know about our responsibility. And we will prevail. Thank you for your attention, and thank you for your trust.

Thank you very much to Mr. Spalt for this report. And on behalf of the Supervisory Board, I would like to thank members of the Management Board. And of course, all employees of the Erste Group, thank them for their great commitment in the 2020 financial year, which was marked by particular challenges and the particular environment of the COVID-19 pandemic. Now on Item 2 of the agenda, resolution on the appropriation of retaining earnings. The Management Board and Supervisory Group suggest to the AGM to adopt the following resolution: that the appropriation of retaining earnings of EUR 644,700,000 in the company's financial account will be made as follows: a dividend of EUR 0.50 will be distributed for each share entitled to dividend in a maximum total of EUR 214,900,000. The company is not entitled to any dividends from treasury shares; the remaining and appropriate profit will be carried forward to new account; the dividend payment date is in deviation from Item 20.4 of the Articles of Association, which provides for the payment of the dividend 10 days after the holding of the AGM, May 27, 2021. I now give the floor to Stefan Dorfler and ask him to explain his proposals for the appropriation of profits.

[ As the Board office, ] I would like to state the following. On March 27, 2020, the European Central Bank published its recommendation ECB/2020/19 on dividend distribution during the COVID-19 pandemic and repealing recommendation ECB/2020/1. The purpose of the recommendation was to preserve capital so that credit institution can continue to play the role in financing households, small and medium-sized enterprises and companies and corporations during the economic uncertainty caused by the COVID-19 pandemic. On July 27, 2020, European Central Bank extended this recommendation until the 1st of January 2021, considering that there would continue to be a heightened level of economic uncertainty, that it would be difficult for credit institutions to predict their medium-term capital needs, ECB/2020/35. Deferring or canceling distribution was necessary to maintain the capital position on credit institutions. This was a temporary measure justified only by the exceptional circumstances. Euro -- ECB intended to take a decision in the fourth quarter 2020 on the approach to be followed after January 1, 2021. At the AGM of Erste Group Bank AG held on November 10, 2020, it was therefore resolved, in line with the proposal of Management and Supervisory Board of the group for the appropriation of the net profit, for the financial year 2019 to pay a dividend of EUR 0.75 per dividend-bearing, provided that on the record date, February 8, 2021, there is no statutory prohibition on dividend payment, and in the opinion of the company, no recommendation of the ECB applicable to the company precludes the payment of a dividend. On December 15, 2020, ECB published recommendation ECB/2020/62, which in the company's view, was and still is applicable to as the condition of the dividend resolved, therefore, occurred on the record date, February 8, 2021, and did not occur. And therefore, no dividend was paid for the financial year 2019. The retained earnings in the amount of EUR 644,700,000 was subsequently carried forward in accordance with the resolution of the AGM on November 10, 2020, in accordance with recommendation ECB/2020/62, which has already been addressed and is currently in force. ECB considered it would not be prudent for credit institutions, in the context of their deliberation on dividend distributions, to consider distribution and share buybacks that extend 15% of the accumulated profit for the financial year 2019 and '20, or exceed 20 basis points in terms of the CET1 or CET1 ratio, whichever is lower. Taking into account this recommendation and the current economic environment caused by COVID-19 pandemic, Management Board and Supervisory Board propose to distribute a dividend in the amount of EUR 0.50 per dividend-bearing share and to carry forward the remaining profit. The proposed maximum distribution amount of EUR 214,900,000 thus corresponds to approximately 20 basis points of the CET ratio at consolidated Erste Group level. The payment of the dividend is subject to the capital gains tax in accordance with tax regulations.

Thank you, Mr. Dorfler. Continuing on the third item of the agenda, resolution on the approval of the actions of the Management Board. And we suggest that the members of the Management Board of the Erste Group Bank AG are discharged from liability for the financial year 2020. And on the fourth item on the agenda, resolution on the formal approval of the actions of the Management and Supervisory Board for the 2020 financial year. Management Board and Supervisory Board propose that the members of the Supervisory Board of Erste Group Bank AG are discharged from responsibility for the financial year 2020. On Item 5 on the agenda, election of an additional auditor for the audit of the financial statements and management report, as well as the consolidated financial statements and group management report for the year 2022. The Supervisory Board proposes that the Annual General Meeting as following resolution, an addition to the saving bank's auditing association as statutory auditor, PwC Wirtschaftsprüfung GmbH is appointed as auditor for the annual financial statements and management report, consolidated financial statements and consolidated management report of the company for the financial year 2022, according Section 1 of the auditing regulation for saving banks, annex to section 24. And the justification is PwC Wirtschaftsprüfung GmbH was appointed by the Annual General Meeting of Erste Group Bank AG 2019 as an additional auditor to the annual financial statement and management report, the consolidated financial statements and the group management report 2020. And during the financial year 2020, the Audit Committee of the Supervisory Board of Erste Group Bank AG regularly reviewed and monitored, among other things, the independence of PwC Wirtschaftsprüfung GmbH, in particular with regard to the additional services provided to Erste Group, so-called nonaudit services, pursuant to section 63 (4) of the Banking Act. And after discussion of the threats to the independence of PwC Wirtschaftsprüfung GmbH and the submission by PwC Wirtschaftsprüfung GmbH of the declaration of independence pursuant to the section 207 (sic) [ 270 ] of the Austrian Commercial Code [ and ] the Audit Committee recommended to the Supervisory Board the renewal of the PwC Wirtschaftsprüfung GmbH as recommended for the financial year 2022, the consolidated financial statement and the group management report. The annual report and -- for the year -- financial year 2020 shows the fees charged by the auditors and its subsidiaries for the reporting year 2020 as well as by companies of the PwC network. On agenda Item 6, election to the Supervisory Board. The Supervisory Board, pursuant to section 15.1 of the Articles of Association, Erste Bank Group consists of at least 3 and most 14 members elected by the AGM. After the last AGM, November 10, 2020, the Supervisory Board was composed by 12 members. The term of office of Supervisory Board member John James Stack expires at the end of today's AGM, as he has reached the age limit stipulated in the Articles of Association, and therefore he is no longer available for reelection. One member would therefore have to be elected at today's AGM to raise the number of Supervisory Board members to 12 following the election at the AGM on November 10, 2020. If 12 super -- members are elected by the AGM, at least 4 seats on the Supervisory Board must be occupied by women and men, respectively. And this in accordance with the paragraph 86, section 7 of the Stock Corporation Act. This requirement is met by the Supervisory Board, is composed in accordance with the following election proposal. The supervisory proposes election of Michael Schuster, born May 22, 1980. Unfortunately, Mr. Schuster will not be able to introduce himself personally at today's annual stock -- AGM. And so I will do so following the presentation of his curriculum vitae. A short introductory video will be shown and has been made available on our company website. Michael Schuster has been founder and general partner of Speedinvest, a European venture capital fund specializing in investment in early-stage companies and start-ups since 2011. Due to his academic background in computer science and economics, as well as his many years of experience in the IT industry and an investor in start-ups, Michael Schuster can make a valuable contribution to the work of the Supervisory Board and complement its expertise, particularly in the areas of innovation, IT and digitalization. For the rest, I refer to his curriculum vitae, which was made available on the company's website on April 20, 2021. Now we will show you a short video introducing Mr. Michael Schuster. [Presentation]

My name is Michael Schuster, and I'm an entrepreneur. 10 years ago, I cofounded Speedinvest, a European venture fund that invests in seed stage. In the past decade, we've invested over EUR 400 million into 180 start-ups, reaching from Slovakia to Portugal and Croatia to Finland. Before that, I ran multiple start-ups myself, always trying to find ways to bring digital innovation to customers. Being innovative is hard in today's world. It's even harder to stay innovative, especially if you're in a highly regulated and contested field such as banking. With George, Erste has done something remarkable: create a digital platform that people love. With my expertise and experience, I will be a trusted adviser for the next generation of innovations within Erste. And I very much look forward to this opportunity with humility and anticipation.

[Foreign Language]

[Interpreted] Whether the candidate would contribute to the collective suitability of the Supervisory Board as a whole and that according to section 86, paragraph 7 and section 87, paragraph 2a of the Stock Company Act, the candidate proposed by the Supervisory Board has submitted declaration pursuant to section 87 to -- of said law, which is available on the company website and registered in the commercial register. The Nomination Committee came to a positive assessment of Mr. Michael Schuster and recommended that the Supervisory Board propose the election of the candidate to the AGM and the Supervisory Board concurrent (sic) [ concurred ] with this assessment. And the term of office of 3 years is therefore also that I will now read out the motion in accordance with the resolution proposed by the Supervisory Board. Supervisory Board proposed that the annual AGM adopts the following resolution. Mr. Michael Schuster, born on May 22, 1980, is elected to the Supervisory Board of Erste Group Bank AG with effect from the end of the AGM until the end of the AGM resolving on the discharge of the financial year 2023. Now Agenda Item 7, resolution on the compensation policy with regards to the principles of the compensation of the members of the Management Board and the Supervisory Board. Pursuant to the articles 78a and 78b of the Stock -- Austrian Stock Corporation Act and in conjunction with Article 98a of said act, the Supervisory Board is required to draw up the principles governing the compensation of the members of the Management Board and the Supervisory Board, the so-called compensation policy, and to submit these to the vote of the AGM at least every fourth fiscal year. And whenever there is a significant change, the remuneration policy approved at the AGM on November 10, 2020, has been amended and will therefore be put to vote again at today's AGM. In particular, the variable long-term remuneration component for the Management Board was revised by introducing a long-term remuneration plan, so-called long-term incentive plan. It makes the payment and the amount of the deferred variable remuneration dependent on the extent to which certain performance criteria are met over a multiyear period. By taking into account a multiyear performance period, the Management Board compensation in the form of the new long-term incentive plan is even more closely linked to the long-term performance of Erste Group in the future. In effect, starting with the performance year 2021, Erste Bank AG will use shares, performance shares units, so-called PSUs, and cash payments as variable remuneration components in this way. The variable compensation of the Management Board [ managers ] is strongly aligned with the shareholder perspective and is designed for the long term. In addition to the achievement, operational and strategic targets, Compensation Committee also evaluates leadership's quality of individual Management Board managers each year while assessing variable compensation, taking into account nonfinancial criteria such as diversity, environment, social responsibility, in addition to financial performance. As CEO, Mr. Spalt said -- from Mr. Bernhard Spalt, as the CEO of Erste Bank Group, sustainability has been explicitly set as one of his performance targets to underline the group-wide promotion and strengthening of sustainability as an important part of Erste Group's corporate strategy. Further details can be found in the remuneration policy to be put to the vote today and made available on the company's website pursuant to paragraph 78b, subsection 1, Austrian Stock Company Act. The vote is of recommendatory in nature, and the resolution is not subject to appeal. Supervisory Board proposes at the Annual General Meeting of the following resolution: compensation policy with regard to the principles for the compensation of the members of the Board of Management, Supervisory Board has adopted compensation policies attached to the proposed resolution as Annex ./1. Agenda item 8, resolution on the remuneration report for the remuneration of members of Management Board and Supervisory Board for the financial year 2020. Pursuant to section 78c and 98a of the Austrian Stock Corporation Act, Management Board and Supervisory Board of a listed company shall prepare a compensation report concerning the compensation of the members of Management Board and Supervisory Board. The compensation report for the last financial year is to be submitted to the AGM for voting for the first time this year. And pursuant to paragraph 78d, subsection 1 and -- of the Stock Corporation Act, the vote is of a recommendatory nature, and the resolution is not subject to appeal. While the compensation policy sets out the principles and framework of the compensation system, the compensation report, which is being prepared for the first time, provides a comprehensive annual overview of compensation granted to the members of Management Board and Supervisory Board in the past financial year. In addition, [ the total compensation ] broken down by components, the compensation report shall include the relative proportion of fixed and variable compensation components and explanation of how the total compensation is in line with the compensation policy, and information on any deviation from the compensation policy due to exceptional circumstances. On December 15, 2020, the ECB published the opinion on remuneration policy in the context of the coronavirus pandemic, which has been mentioned several times already, recommending that institutions make adjustment to their remuneration policies to limit the impact of variable remuneration on their capital base in the context of the COVID-19 crisis. In addition, ECB called for extreme restraint in variable remuneration and that until September 13 -- 30, 2021, and in particular, to consider withholding a larger part of variable remuneration for a longer period of time as well as paying variable remuneration in the form of instruments, as defined in Article 94, subsection 1, CRD. As a result, the Supervisory Board decided to deviate from the approved compensation policy for the variable compensation of the members of the Management Board for the performance year 2020, and to apply the same approaches for the performance year 2019. The variable compensation granted for performance year 2020 was therefore also granted exclusively in phantom shares and thus deferred for a further year due to the holding period. Unlike in regular financial years, for the financial year '20 and the financial year 2021, no cash portion of the variable compensation will be paid out. The award of variable remuneration in the form of phantom shares was made at a weighted average share price for 2020 of EUR 21.38. The payment of the upfront portion of the variable remuneration for the performance year 2020 will not be made before 2022 at the weighted average share price for 2021. The deferred portion of the variable remuneration for the performance year 2020 is also fully linked to the future development of the share price of Erste Group. Furthermore, the compensation report contains detailed information on the achievement of targets, which with regards to individual performance criteria as well as the assessment of the leadership quality of each individual Management Board member, further details can be found in the compensation report to be voted on today and made available on the company's website. It should also be noted that Erste Group Bank AG commissioned PwC Wirtschaftsprüfung GmbH with a limited audit for the 2020 remuneration report. In the course of their audit procedures, auditors did not become aware of any matters that would lead them to believe that the remuneration report of Erste Group Bank AG for the financial year 2020 does not comply in any material respect with the requirements of section 78c and section 98a of the Stock Corporation Act and section 98a, taking into account AFRAC opinion number 37 "remuneration report pursuant to section 78c." Management Board and Supervisory Board therefore propose the AGM to adopt the following resolution. The remuneration report for the remuneration of members of Management Board and Supervisory Board of Erste Group Bank AG for the financial year 2020 is adopted. Remuneration report as proposed is attached as Annex ./2. On agenda item 9, resolution of the authorization of the Management Board to acquire treasury shares for the purpose of security trading and therefore give the floor to Stefan Dorfler.

All right. Section 65 of the Austrian Stock Corporation Act provides that a bank may acquire treasury or own shares for the purpose of securities trading, for the purpose of offering the shares for purchase to employees, executives and members of the Management Board or Supervisory Board, the company or of an affiliated company involving a private foundation pursuant to section 4d of the Austrian Income Tax Act, as well as for no specific purpose on the basis of an authorization granted by the AGM. The authorizations in question were granted by the AGM of 2019 for a period of 30 months and expire on November 14, 2021, which is why they have been placed on the agenda again this year under agenda items 9, 10 and 11.

Thank you, Mr. Dorfler, for these explanations. I'd like to state the following. Portion of the share capital associated with the shares acquired by the company on the basis of this agenda item and the following 2 agenda items 10 and 11, together with other treasury shares that the Erste Group Bank AG has already acquired and still holds, may not exceed 10% of the share capital. And I'll read out the proposal: in accordance with the resolution proposed by the Management Board and the Supervisory Board. The Management Board and the Supervisory Board proposed that the AGM adopt the following resolution. The authorization of the Management Board granted at the 26th AGM of Erste Group Bank AG to acquire treasury or own shares for the purpose of securities trading is revoked. And the Management Board is authorized to acquire treasury shares pursuant to section 65, para (1)(7) of the Stock Corporation Act for the purpose of securities trading in the amount of up to 10% of the share capital, whereby the trading portfolio of shares acquired for this purpose may not exceed 5% of the share capital at the end of each day. The consideration for the shares to be acquired may not be less than half of the closing price at the Vienna Stock Exchange on the last trading day prior to the acquisition and may not exceed the closing price at the Vienna Stock Exchange on the last trading day prior to the acquisition of more than 20%. This authorization is valid for 30 months, i.e., until November 18, 2023. All right. Now item 10 on the agenda, resolution on the authorization of the Management Board to acquire treasury shares for the purpose of giving shares free of charge or at a reduced price to Erste Mitarbeiterbeteiligung Privatstiftung, to its beneficiaries, to employees, executives and members of the Management Board of the Erste Group Bank AG or any of its affiliated companies or to any other company under section 4d, paragraph 5, subparagraph 1 of the Austrian Income Tax Act. I now give the floor to Stefan Dorfler.

Under the conditions of section 65, (1) subparagraph 4 of the Austrian Stock Corporation Act, a listed stock corporation may be authorized by the AGM to repurchase its own shares if the shares are to be offered for purchase to employees, executives and members of Management Board or Supervisory Board of the company or a company affiliated with it, with involvement of a private foundation person to section 4d of the Austrian Income Tax Act. With regards to the highest and lowest conservation for these shares, the Management Board and the Supervisory Board propose the same ranges as under agenda item 11, that is to say, EUR 2 and EUR 120, respectively. As an Employee Participation Foundation pursuant to section 4d of the Austrian Income Tax Act, the Erste Mitarbeiterbeteiligung Privatstiftung is responsible, among other things, for the fiduciary, safekeeping and administration of shares held by the beneficiary employees of the Erste Group in Erste Group Bank AG. And Erste Mitarbeiterbeteiligung Privatstiftung is also entitled to issue shares in Erste Group Bank AG to these beneficiaries free of charge or at a reduced price and to exercise uniformly the voting rights associated with the shares held in trust and administration. The Management Board shall be authorized with the Supervisory Board to acquire treasury shares for the purpose of transfer to Erste Mitarbeiterbeteiligung Privatstiftung. The off-market repurchase of treasury shares, excluding the shareholders' rights to offer, as well as the statement of the conditions for the repurchase by the Management Board, may only be carried out with the approval of the Supervisory Board. I also refer you to the report of the Management Board published on the company website.

Thank you very much, Mr. Dorfler. And I now read out the motion in accordance with the resolution proposed by the Management Board and the Supervisory Board management as well as a report proposed that the AGM adopt the following resolution. Pursuant to section 65, paragraph (1) (4) and 1a and 1b of the Austrian Stock Corporation Act, the Management Board is authorized for a period of 30 months from the date of the resolution, i.e. until November 18, 2023, with the consent of the Supervisory Board, to acquire treasury shares of the company in the amount of up to 10% of the share capital of the company, also by repeatedly utilizing the 10% limit, both via the stock exchange and over the counter, also under exclusion of the quota-based tender right of the shareholders for the purpose of giving shares free of charge or at a reduced price to Erste Mitarbeiterbeteiligung Privatstiftung and to its beneficiaries, to employees, executives and members of the Management Board of the Erste Group Bank AG or one of its affiliated companies, or to any other companies. Pursuant to section 4d, paragraph (5)(1) of the Austrian Income Tax Act. The authorization may be exercised in whole or in its entirety or in several installments and in pursuit of one or more purposes. The consideration per share may not fall below the lower limit of EUR 2 and may not exceed the upper limit of EUR 120. Reference is also made to the report of the Management Board published on the company website, which is registered in the commercial (sic) company register. Now Item 11 of the agenda resolution on the authorization of the Management Board to acquire treasury shares without earmarking, without a specific purpose. And I now hand over to Mr. Dorfler again.

Under section 65, paragraph (1)(8) of the Austrian Stock Corporation Act, [ enlisted ] stockholders may be authorized by the AGM to repurchase its own shares without specific earmarking, excluding trading and treasury shares. The Management Board and Supervisory Board propose that in this authorization to repurchase shares without specific earmarking, the highest and lowest consideration for the shares should remain at absolute amounts. The range should not be too narrow, so as not to make a possible repurchase impossible, even in the event of strong price fluctuations. The treasury shares are to be used in particular as consideration for the acquisition of shareholdings for our companies. In this case, it may be advantageous for the company to offer treasury shares as part -- in part or in full as consideration, for example, to compensate shareholders at target companies. This enables the company to take advantage of market opportunities quickly and flexibly and to cover the necessary capital and special financing requirements on favorable financing terms. The off-market repurchase of treasury shares, excluding shareholders' tender rights and the setting of the terms and conditions for the repurchase may only be carried out by the Management Board with the approval of the Supervisory Board, as may the sale of shares excluding shareholders' purchase rights, the so-called exclusion of subscription rights. Likewise, any resolution of the Management Board on the retirement of withdrawal of treasury shares is subject to the approval of the Supervisory Board, also referred in to the report of the Management Board published on the company website, which is registered in the company register.

Thank you, Mr. Dorfler. I now read out the motion in accordance with the resolution proposed by the Management Board and the Supervisory Board. The Management Board and the Supervisory Board propose that the AGM adopt the following resolution. The authorization granted to the Management Board at the 26th Annual General Meeting of the Erste Group Bank AG to acquire treasury share without earmarking is revoked. And the Management Board is authorized, pursuant to section 65, paragraph (1 (8) as well as paragraphs 1a and 1b of the Austrian Stock Corporation Act for a period of 30 months from the date of the resolution, i.e., until 18th of November 2023. The Management Board is authorized with the consent of the Supervisory Board to acquire treasury shares of the company up to an amount of 10% of the share capital of the company, also by repeatedly utilizing the 10% limit, both at the stock exchange and over the counter, also excluding the shareholders' quota, so-called tender rights. Rights to offer the authorization may be exercised in whole or in part or in several installments and in the pursuit of one or more purposes. The consideration per share may not fall below the lower limit of EUR 2 and may not exceed the upper limit of EUR 120. The Management Board is authorized for a period of 5 years from the date of the resolution or until May 18, 2026, pursuant to article 65, paragraph 1b in conjunction with article 171 of the Stock Corporation Act, with the approval of the Supervisory Board, to sell or use treasury shares of the company for any legally permissible purpose other than by the stock exchange or by means of a public offer, in particular, as consideration for the acquisition and to finance the acquisition of companies, businesses, parts of businesses or shares in one or more companies in Austria or abroad. And in this context, also to exclude the shareholders' quota-based purchase right, exclusion of so-called subscription rights. The Management Board is authorized, with the approval of the Supervisory Board, to redeem treasury shares without -- or to withdraw treasury shares without further resolution by the AGM. Reference is also made to the report of the Management Board published in the company website, which is registered in the commercial register. And this concludes the presentation of report and proposed resolutions of the Management Board and the Supervisory Board on all agenda items. I now give the floor to each of the special proxies. Please let me know if -- let me know whether any motions for the resolutions have been received from the proxy shareholders. If yes, please read them out. If no, please confirm that you have not received any motions for resolutions so far. And I now give the floor to Nikolaus Adensamer.

Thank you, Mr. Chairman. I represent [ 102 ] shareholders with a -- given number of shares and there are no motions for resolutions as far as these shareholders are concerned. Thank you.

Thank you very much, Mr. Adensamer. I now give the floor to Michael Knap, proxy Michael Knap.

Mr. Chairman, thanks for giving me the floor. I represent 532 shareholders, 42,221,565 shares. And no shareholder has provided me with motions. Thank you.

Thank you, Mr. Knap. I now give the floor to Christoph Nauer.

Chairman, no motions have been provided to me by the shareholders that I represent.

Thank you very much, Mr. Nauer. Ewald Oberhammer, you have the floor.

Mr. Chairperson, I can also confirm that no motions have been received. Thank you.

Mr. Oberhammer. Notary public Mr. Brix will mention this [ or state this ] in a minute. And this here is -- the presence here. So in accordance with section 117 of the Stock Corporation Act, and the list of participants are assigned. 3,426 shareholders are represented by the 4 special proxies who are authorized to account those [ managers ], 340,715,869 votes, which means that the AGM has a quorum on the items of the agenda. The list of participants is handed over electronically to the 4 special proxies. For reasons relating to data protection, we refrain from displaying the list online.

And now the general debate; meaning, reading the questions and answering the questions. I will read out the question of the shareholders, and either myself or other Management Board members will then respond to these questions. A few shareholders have already made use of this opportunity to submit questions by e-mail prior to the AGM. These questions will be dealt with first, and we'll also read out the answers to these questions. In line with our tradition, we will start out with the questions put by Mr. [ Stahle ] and a short introduction that I want to read out. The Chairperson of the Supervisory Board is glad to then read out the question of [ Stahle ] represented by [ Gubert Stahle ] and to read this question in its entirety. [ Stahle ] Investment GmBH the shareholder have voting card 1885 and [ tecknopf ] from [Foreign Language] is the representative. So this shareholder also states the following: Ladies and gentlemen, today is the big day of opening in Austria. Hotels, restaurants, theaters and the opera and amusement parks as well, everything is open now. So this is what holds true for real life. This does not hold true for the AGM. Again, it's a virtual AGM, in line with the COVID-19 ordinance. Now everything has become virtual because of the pandemic, of course. Many people consider this an imposition of a major restriction, and I'm actually sick and tired of this virtual fake world. I would be remiss if I didn't mention this. I'm very much looking forward to tonight. Tonight, there will be a performance of Faust at the Vienna State Opera. But let's look into the future, what's the future of the Erste Group AGM's hold? So that was Mr. [ Stahle ], our representative. And thanks for using such sophisticated language when talking about restrictions. He could have also made some rather pithy remarks. Okay. If you -- questions that will be answered now. So in line with what I've just read, let me read out something that is directed to Mr. Spalt. Are you looking forward to the next in-person AGM of Erste Group? And what will you change? And how will you make it more attractive?

Well, thank you very much. As I've already pointed out in my presentation, there are many advantages and disadvantages connected to virtual meetings. We miss a lot of things. And some things are, of course, troubling and irritating. So we've had 12 or 13 or 14 months with many, many Supervisory Board meetings and other meetings. And we know exactly what the advantages and disadvantages of virtual meetings are. Now in view of the experiences we've gained, I would say that virtual AGMs should also take place in the future. As to the specificities, well, we think that decisions will have to be made soon and preparatory work will have to commence soon. Important work needs to be carried out. It's not just the interest of companies, meaning to say AGM [ environment ], but also the interest of shareholders and their questions. And shareholder participation also needs to be taken into consideration. So in the weeks and months to come, we'll try to optimize the format of AGMs and both, of course, consider the pros and cons. So that's what we'll do.

Thank you very much. Now from the point of view of the Supervisory Board, let me just say that we're closely connected to shareholders, and it's very important for us to enforce the rights held by shareholders. And of course, we'll look into the legal requirements to be met next year. The COVID-19 rules, of course, are set to expire at the end of this year. Okay. This brings me to the next question to be directed to Mr. Dorfler put by Mr. [ Stahle ]: Now let me mention 2 groupings and thank 2 groupings within the bank. I would like to thank Investor Relations and accounting teams of Erste Group for the management report. Now as -- whose bank this report is boring, but as far as the substance is concerned, it's quite informative. Now I quite agree that a lot of work went into the reports made up of more than 300 pages. Thank you. But one thing you have to explain, in the balance sheet, in deposits by customers or under deposits by customers it says 190,860,000 -- sorry, 190,860,000,000, it's the same, 190.160 billion that you find in Annex 19. Now in the summary and in the indicators at the beginning of the management report, it says EUR 191.7 billion. So the question to be put to Stefan Dorfler: have I made a mistake? What about the EUR 254 million worth of customer deposits? Have I lost them somewhere?

Thank you very much, Mr. [ Stahle ] for these words of praise you found for the colleagues working in those teams and I very much agree with those words of praise. The colleagues you mentioned do a sterling job, and they have a lot of work to do, but the result, I think, is something that we can be quite proud of. On your question, you haven't lost anything, and we haven't lost anything either. So let me refer to 132 of the German language management report. That's where you have all the details. Now just look at EUR 254 million. That's customer deposits at fair value, and that's why -- and that's under liabilities. So it's -- financial liabilities at fair value, customer deposits, EUR 254.0 million. Whereas the other amounts of financial liabilities, deposits by customers at EUR 190,860,400,000 as at the date of the balance sheet. So nothing is lost. It's just under different items. It's just listed under different items, but nothing has gotten lost.

Okay. Next question that's displayed. It's put to Mr. Schaufler, but actually it alludes to a question put by Mr. [ Stahle ] before. So there's a risk. Banks may actually pay -- play a secondary role as credit mediators between the ECB and customers, if the ECB were to come up with a digital currency. So the question to be put to Mr. Schaufler is this: in light of this, what are the right investments and what are the wrong investments to respond adequately to this risk or danger?

Well, the digital euro idea has been around for a long time. The ECB said that in 5 years' time, it may actually start implementing things. Our job is to prepare our customers in an optimum fashion so that they can actually benefit from these developments. In the past, as was said by the new Supervisory Board, in the past, we've already come up with George. And this platform has shown that we maximize customer benefits. Our job is to make it more attractive -- even more attractive so that usage can be optimized. So the ECB is considering coming up with payment transactions, but on digital -- but I think that it's our job to offer services to customers that place them at a more advantageous position compared to other banks. Thank you.

All right. The next question goes to Mr. Spalt. So [Foreign Language] services again has responsibility for AGMs. It is the most important IT and service provider for AGMs in Austria. And the question is, what is the strategy that you deploy? And what investments are you making in this company so that AGMs can be adapted in the digital era and so that they can become more attractive? Let me just refer to hybrid AGMs. Thank you.

Well, [Foreign Language] [ GmBH ] is very successful in its market and is well accepted by customers. [Foreign Language] [ GmBH ] during the pandemic showed that it can adapt very quickly and flexibly to changes. [Foreign Language] finances itself by deposits and also makes investments. Now you're right, in the future, investments will be necessary, and we're working on a strategy. This strategy of course depends on legal requirements, as was already said by the Chairman. Right now, having a virtual AGM is a possibility, but only until at the end of the year. So we're working on a strategy. It depends very much on the legal framework and how it will develop and the legal opportunities that we'll have in the future. AGMs as in-person meetings, or virtual meetings or hybrid meetings, these are the 3 options. [Foreign Language] will respond to any of these changes and will be prepared to accommodate changes in this sector. Thank you.

Now the next question is directed to Mr. Bleier. Now over the past 3 years, have we actually granted loans to political parties or associations affiliated with them or institutions? If yes, what is the amount? And who have been the beneficiaries?

Thank you very much for this question. Now first of all, let me stress that because of banking secrecy, we cannot divulge information relating to customer relations and loans granted to customers and the like. Let me also stress that as far as financing associations and parties is concerned, we, of course, comply with lending criteria as well as regulatory requirements. All of this taken into consideration. Let me also quite generally that financing or funding political parties and associations is not a major business as far as corporate clients go, or any other activities. Thank you.

Thank you very much. The next question concerns remuneration policy and is directed to myself. Let me read out Mr. [ Stahle ]'s question: Ladies and gentlemen, during the AGM on the 10th of November 2020, we dealt with the remuneration policy for the Management Board. 133 million no votes, well, that was a clear answer to what I said at the time. It was just blah-blah. It was platitudes and truisms only. But today, of course, we have to deal with this again because the variable long-term remuneration component has been "reviewed". So the so-called reviewed version of -- distribution of remuneration policy for Board members of the Erste Group Bank AG, and I am also reviewing the statement, well, it's again just blah, blah, blah. full of platitudes, full of truisms. Now the voting on this banal set of goals is irrelevant. In accordance with 78 of the Stock Corporation Act, this is just a recommendation. So I will again cast a no vote. Ladies and gentlemen, dear shareholders, now there is someone I appreciate a lot, PwC Wirtschaftsprufung GmbH. Interestingly, the Management Board and Supervisory Board tasked it with the review of the remuneration report for the fiscal year 2020. Unfortunately, this audit was only carried out based on limited security. But of course, there was a logical explanation for this, and I again quote from the audit reports conducted by PwC. When auditing a document under limited security, now the audit work is less comprehensive, so that lower security level is achieved. Ladies and gentlemen, I'm sure that you will understand now that this remuneration report submitted for the first time will be -- or has been reviewed by me in greater detail. Total remuneration for 2020, this refers to active and former members of the Management Board. Well, this amounted to EUR 18.55 million, including a modest vacation supplement amounting to EUR 64,000. Now in the small print, we don't really get information as to whether this supplement has been part of his total remuneration. We, the former board member -- well [ Midva ] in particular, in 2020, they still fare quite well. Financially, that's nice to have, but Andreas Treichl is an adviser. And in 2020, he made EUR 5.2 million, including severance pay. So we hope that he will have quite enough. Ara Abrahamyan was a Board member for a brief period of time. So the Chairperson of the Supervisory Board, I'd like to thank him. Why has he been withdrawn? And why is he no longer a Board member? What is remarkable, Mr. [ Stahle ] also writes i with a capital I, I don't know what that means. Okay. We're taking this very seriously and let me comment the following. In the fall of 2020, we published our remuneration policy, which was adapted due to the feedback of the shareholders, and we've published a remuneration report. And you can read the details of our remuneration policy in the remuneration report. We tried to be absolutely transparent and include all parts of remuneration of our members of the Management Board and the Supervisory Board. You mentioned EUR 18.55 million for the Management Board and former members of the Management Board. Let me emphasize that payments to previous members of the Board are in line with their contracts. And we have a maximum of a 12-month one-off payment. The severance payment of Mr. Treichl doesn't have anything to do with his consultancy agreement. It was the legal severance payment that he had been accumulating since he started his activities for more than 25 years. This severance payment, we have provisions for the severance payments over the past years. As far as Peter Bosek and the payment for nonconsumed vacation is concerned, this is not included in the total remuneration because it is a legal entitlement. As far as Mr. Ara Abrahamyan is concerned, we severed in this -- his contract in mutual consent. We said that we want to focus on George and extension of George, and this is why Mr. Maurizio Poletto is the right person to supplement our team. So much for this -- the answering of this question. Next question goes to Mr. Bleier. Erste Asset Management at the end of 2020 managed EUR 68.2 billion. What is the strategy you applied in order to make Erste Asset Management attractive? And what about the medium-range goals?

Thank you very much. I'm happy to -- that you asked a question relating to asset management. As you said, we have more than EUR 68 billion assets under management. At the end of the first quarter, this has increased to EUR 71 billion, and we are the leading asset management company in Austria and Eastern Europe. We have an organic growth strategy, so this explains our strategy -- organic growth strategy in the private customer business and the institutional business. We want to attract more customers for asset management. Together with Mr. Schaufler, we want to attract these customers, and we want to broaden our product range by sustainable products. We have been a pioneer in this respect and a large proportion of our managed assets are in this respect. On the other hand, we are investing in real property and other fields where we are protected against inflation. We issued a fund, which is called Real Asset and was very successful on the private customer side, and we think that more such products will help us to grow our business.

Thank you very much, Mr. Bleier. Mr. [ Stahle ] isn't quite satisfied that his questions aren't answered as he -- [ as for me ] I can only read the questions as they pop up on the screen. I see another question relating to the remuneration report. Ara Abrahamyan. And we terminated his employment on mutual consent, and he received EUR 700,000 payments in terms of the contractual payment, which will be paid out in cash in 2021. Wikipedia is informing us about payments in cash, a payment -- it's a payment where a person receives cash. Mr. Abrahamyan didn't want to have coins. He wanted to nevertheless receive cash, but payment in cash can be defined differently than Wikipedia. We can have a bank transfer and not pay the actual in cash. So payment in cash meant that we have a payment in cash and not phantom shares or shares or any other payments in kind. Next question directed to Mr. Bleier and refers to Erste Asset Management. Asset management, Erste manages EUR 68 million -- billion. I think we already answered this question. Next question to Mr. Spalt. The ERSTE Stiftung holds 16.5% of the capital shares of -- also the Sparkassenstiftungen increased their capital stocks, 3.8% are held by other syndicates, partners, who are they? Mr. Spalt, please.

3.8% of shares are held by the [Foreign Language] Vienna Insurance Group.

Thank you. Okay. We have 2 questions to Mr. Schaufler that relate to the same topic. What about the strategy if the ECB introduces the digital euro?

I already mentioned before that it is an important topic, because it will organize payments in future. Within the next 5 years, the ECB says, will not happen much. But after 5 years, digital euros might take place, so we can offer customers ways of not paying cash. And we plan to offer our customers much convenience as far as payments are concerned. It's about the technical opportunities that we can offer. The ECB itself isn't quite clear whether ECB wants to offer wallet to customers. And of course, this will have a certain influence on liquidity directed towards the ECB. But in 2020 we had many customer inquiries, what happened to their money. And ECB must be prepared to customer service, must be well prepared in order to answer such inquiries as we had last year. And I think what we offer in terms of services cannot be provided by ECB one-to-one.

Thank you, Mr. Schaufler. Next question, how do you want to prevent that the bank in the future is only a second-hand credit mediator between the customer and the ECB? And what if others can do it the same way, maybe in a more simple way?

So far, the ECB does not think about giving loans to customers -- to private customers. If this happens, I can only say that due to the long-term customer relationships that we have, we have a competitive advantage due to our long relationships, what we know about the customer, and we know about his personal situation, how he can pay back the loan. Yes, the ECB might think about end-to-end solutions to customers, but due to the data quality that we have, we think that we can provide services of a higher quality. But we're also thinking about the digital end-to-end solution for our customers, and this is what Mr. Rodler said before. This is also our focus, as far as George is concerned, to offer products and services that which will allow such digital services. And we can already offer an end-to-end service to the customer, risk measurement, and the next thing will be mortgage loans. We will have such instruments.

Thank you, Mr. Schaufler. Next question to Alexandra Habeler-Drabek and maybe Mr. Spalt would also like to comment. It's question 16 of Mr. [ Stahle ]. The question is directed to Ms. Habeler-Drabek, an expert, why do we have a women's quota of 14% in the Czech Republic, which is so low as compared to 68% overall?

Thank you very much for the esteem, and thank you very much for the question, because diversity is very important to me. This is not only applying to me, but to all of us that are here today, and this is why the question will be answered by the CEO, Mr. Spalt.

Diversity and not only gender diversity is something that we have always backed. We think that cognitive diversity is a source of excellence, and that it will improve the decision-making process. We are not happy with the women's quota in our management functions. It's a long way to get where we want to be, but we are on a good path. And if we look at the portfolio of Ms. Alexandra Habeler-Drabek, I would like to point out that we have a more than 50% women ratio. And also on the second management level, also have a very strong women's quota. Of course, we have departments where it is difficult to employ women because young recruits are the problem. We have a diversity group that reports to me -- a diversity department that reports to me. We set up KPIs for our companies in the individual countries where we want to get, which targets we will fulfill. What we have achieved so far is not satisfactory. Ceska Sporitelna implemented agile structures in the management function. Daniela Peskova is responsible for the retail business and has a very strong role in Ceska, and is responsible for sales in the private customer business. We have KPIs, we have ratios, and we want it to have diverse teams. As far as recruitment is concerned, we want to have the same number of men and women as far as recruiting is concerned. The same number of men and women in the Management Board will be difficult to fulfill. We know that we are lagging behind in the Czech Republic in Ceska Sporitelna. And I'm sure that we can have -- can be successful and achieve a lot of progress in the near future.

Next question is directed to Mr. Schaufler. We -- I think we are a financial health company, that's question #6 of Mr. [ Stahle ]. What are the products of the future of a financial health company?

Thank you very much for this question. We are taking the financial health company very seriously. Let me give some examples. For example, in the financial life part, we have a digital investment challenge for young people starting at the age of 14. More than 1,500 students are already using this service. We also have a challenge for adults. For example, how can I plan my financial life, how can I invest. So we're taking this very seriously because we know that we are a friend of the customer. We accompany the customer. It is important to have the correct information and to give correct advice information to the customer. Erste asset management plays a very important role in our group. YOU INVEST was one of the first asset management projects for small-scale investments. We had onetime payments and also savings plans, and it gave people the opportunity to benefit from an excellently managed service. As far as financial health is concerned, we have a 3-stage program. On the one hand, we try to inform customers what it means to have liquidity management. EUR 372 billion, not interesting (sic) [ non-interest ] bearing in Austria and on savings books or in just normal bank accounts. And it is important to inform customers what their liquidity risk [ off ] must be and what they can invest in interest-bearing instruments. So first of all, we try to inform the customer what opportunities there are, what savings plans we can offer in order to build up assets. And we also inform people about the liquidity instruments, that it makes sense to invest in securities. We also talk about Green Invest real assets, and we try to explain to the customer that it makes sense to build up assets in the long run. And our consultants are asking customers what they need, and we have a very specific interview with the customer about the risk affinity, about what the customers expect in terms of profits and gains in order to offer the best product to the customer. We are supported by a digital component, where customers see how the investments develop. And via George, the customer can get information that, for example, it would make sense to invest more. So it's not only a product package. It's not only investment into the right products. It's about financial literacy. It's about passing on experience and to offer services to our customers, consultancy in the individual branches and what we can offer with George.

Thank you. Next question directed to Mr. Spalt. Question #13 of Mr. [ Stahle ]. Did we spend money in 2020 for purposes such as lobbying? If yes, how much and to who?

As the group is a responsible corporate citizen and, of course, is trying to support its interest vis-a-vis decision-making institutions in Austria as well as in Brussels, and by our subsidiaries and [ C E ] directly in our region. We are very active in the [Foreign Language] Department of Economic Chamber in Austria, and I am the Chairman of the legal representation of interest of our banks. And we are also a member of the Austrian Association of Industrialists. The Erste Group is, of course, also registered in the lobbying and representation of the interest register in Austria and in the transparency register of the European Commission, and also has a code of conduct. In my portfolio are various department which is, of course, dealing with subjects and apart from membership fees for [Foreign Language] costs for personnel.

Next question is directed to Mr. Dorfler. Question #4 of Mr. [ Stahle ]. Customer deposits rose EUR 298 billion. This is not an irony of the business model. The bank is drowning in liquidity because credits in 2020 could only be increased by 3.5% to EUR 166 billion. Question, what are you doing in order to manage the customers' monies flowing in, in order to turn them into profit-bearing products?

Thank you for the question, Mr. [ Stahle ]. This is one of the most important questions of the past years, and will remain to be such a question for the coming periods. We know about the situation on the capital market. We all know what happened after the crisis. We all know about the trend in interest rates -- negative interest rates. Then we had the crisis at the beginning of 2010 and the following years. Now we have extreme liquidity on the markets. Our customers in Europe and elsewhere are trying to make sure that they are safe in very uncertain times. May I turn your attention to the figures of the first quarter of 2021. We had EUR 205.4 billion customer deposits at the end of the first quarter of this year, so the trend has continued unabatedly. But the question is, what is the relationship between customer deposits and loan? And our CEO, Mr. Spalt, already mentioned in his report that the loan-to-deposit ratio is very low, at 81.7% at the end of the first quarter. But not everything is bad in this respect. Don't forget that a bank that has strong deposits has always been a very strong bank in the past decades. And also this helps us to finance our business plans, and I think you shouldn't ignore that fact. Maybe it's a burden as far as profitability is concerned. But as far as the long run is concerned, I think it is important that we have a balanced position. What are we doing? We have medium- and long-run measures which are reflected in our core businesses, of course, giving loans to customers and grow this segment. Of course, this is not as easy as the inflow in a crisis. But in the past years, in all segments, in all our regions, we've grown as far as our loan books are concerned, and this will continue to be so. I am with Mr. Spalt. I fully agree with Mr. Spalt that we will see a substantial increase in the coming months and years in our region. So it's the best way to spend liquidity, so to speak, and to use the money of our customers. Mr. Schaufler, on the other hand, already said that what is important is our asset management business. Long-term asset management, building up assets for our customers. We're together with our customers. And it's not about speculation. It is not quickly -- it's not about [ shiftly quicking ] money from A to B. It's turning money into profitable investments and building up property. And then we have short-term and midterm measures: asset management, liquidity management, where we are making use of all opportunities in our region, and we are doing that very successfully as the financial market figures show. Given the difficult conditions of the interest environment, that's a challenge that we have to meet on a day-to-day basis. And last but not least, it's an automatic consequence of negative interest rate policy that -- we have 0 interest rates for customers, for the private customer business. And as far as corporate customers are concerned, we have to collect fees for deposits in order to compensate the cost of over liquidity and the cost of the negative interest rates policy. This is a bundle of measures, and I do hope that I've answered your question.

Thank you. Another question to Mr. Spalt. Question #15 from Mr. [ Stahle ]'s list. Please mention the 5 largest donations in 2020 and the targets of the donations.

So I already said in my presentation that we are aware of our role in our society. We think that the civil society is very important. We are at the -- in the center of our society and trying to act responsibly for the society as a whole. As far as 2020 is concerned, it was clear for us as a group that we have to set measures that go beyond increased commitment for our customers in a crisis, in an unprecedented crisis. And we knew that we can only come back to normality once the health situation has been resolved. And this is why we decided to donate to the Red Cross, donate EUR 1 million to the Red Cross, and this is the largest donations we made. Apart from these donations, we had donations to Agenda Austria, the [ International Geological Institute ], the association Allianz human rights in Austria and the association ZOOM Children's Museum, and the donations ranged between EUR 40,000 and EUR 100,000.

Thank you. Two other questions by Mr. [ Stahle ] that also relates to me are questions 18 and 19. Mr. [ Stahle ] writes, John Stack is, for age reasons, leaving the Supervisory Board. I am skeptical when a personal friend of Mr. Treichl is a member of the Supervisory Board, but this case shows that his work and expertise was beyond doubt. Thank you very much, dear John Stack. And I think you already mentioned that on behalf of the Supervisory Board. The last question to you, dear Friedrich Rödler. What about 2022? What about succession planning for the Chairman of the Supervisory Board? This is a very personal question. And of course, the solution depends on various factors. It depends on my state of health. It depends on the state of my energy, to have enough energy to assume the responsibility of this term. And in 2022 not only my term ends, but all of the other terms end as well, and the Nomination Committee will discuss this question. And an additional question. Please allow me a personal additional question. Can we enjoy your quiet management in the Supervisory Board a little longer? Thank you very much for the virtual attention, and I'm happy to receive real answers. And if I may do this job and if I can do this job okay, yes, I will be most willing to fulfill these functions as long as it is required. So much for the questions of [ Stahle ]. Let me continue with the questions of Mr. Knap. I would like to apologize to Mr. [ Stahle ] that the thread in answering his questions was kind of lost, but it's the system that presents the questions that way. Maybe not in the sequence they were asked. Mr. Knap, voting card 1,944, and he is talking about potential one-off effects in 2020. And the question is directed to Mr. Spalt. And it says, because I too always experienced surprises most recently in Innsbruck, for example, I ask only as a precaution: were we affected in 2020 by the events surrounding Wirecard or Commerzialbank Mattersburg? If so, what were the effects and in which items of the consolidated financial statements were they recorded?

Thank you very much. Erste Group was not involved in the events that Wirecard and Commerzialbank Mattersburg reported in the media. However, Erste Bank was indirectly affected by the insolvency of Commerzialbank Mattersburg and the resulting intervention of [Foreign Language] GMbH. As [Foreign Language] was or is still a member of [Foreign Language] Austria GmBH at the time of the insolvency for historical reasons, it had also to make corresponding contributions to compensate depositors. The estimated total loss for [Foreign Language] would amount to EUR 17.5 million and would have to be paid in 5 installments. The first installment was paid in 2020 in the amount of EUR 3.5 million and was booked in the P&L in administrative expenses. For 2020, [Foreign Language ] paid a total of EUR 9.6 million to [Foreign Language ] GmbH. In 2021, as already reported in the media, the withdrawal of [Foreign Language] from [Foreign Language] Austria GmbH and its transfer to [Foreign Language] GmbH was also applied for with the regulator. We expect this change to be completed in the fourth quarter of 2021. If this change is approved, no further contributions will have to be made for the Commerzialbank Mattersburg claim for 2021 and subsequent years. Erste Group Bank, Erste Bank [ Osterreich ] and savings banks, which are united in an independent deposit guarantee company, the [Foreign Language] GmbH, did not have to make any financial contributions.

Thank you very much. Next question of Mr. Knap is on Romania and goes to Mr. Dorfler. Romania is the only area segment where activity net profit for the period increased from 80 -- EUR [ 88 ] million in 2019 to EUR 123 million in 2020. Bucharest Financial Plaza, the headquarters of our Romanian subsidiary BCR, was sold to IMMOFINANZ for approximately EUR 36 million. And this is from IMMOFINANZ corporate news from the 23rd of March 2021. Was the sale of the property already anticipated in the Romania 2020 segment result? Or will it only have an impact this year as a one-off effect? And how to determine the selling price if a particular expert opinion, from which real estate expert? Is BCR now tenant of IMMOFINANZ in its headquarters? If so, for how long? Or has BCR headquarters been sought, found or under construction? If so, when will it be completed? Mr. Dorfler?

Thank you, Chairman. Well, allow me to say 2 words on a couple of things on Romania, because in 2020, and this actually comes really directly out of the question. Until today in the financial year 2021 is very successful. We have excellent operational results. And the risk costs of 2020 have been compensated for by a one-off effect. So the business in Romania is doing quite well. So concerning Bucharest Financial Plazza, the sale was only in the books in Q -- in the first quarter 2021. And this, according to the Cushman & Wakefield, GLL. And due to the COVID-19 situation, update of the valuation was carried out in 2020 and the signing sales price was above the value. And no, BGR (sic) [ BCR ] is not tenant of IMMOFINANZ. We lease the new headquarters, which is The Bridge in Business Garden Bucharest. Thank you.

The next question is to Mr. Bleier and about closing of the London -- the subsidiary in London will be closed in 2021. Why? Is it for saving reasons or for what reasons?

Well, with Brexit, we, of course, have a main factor. We have notified that to the financial authorities in London that we do not want to keep our license in the U.K. anymore. And we transferred back to Vienna, and we transferred the whole ledger, and also for cost reasons. We are in the process of closing. And all the credits have already -- credit lines have been transferred to Vienna. Thank you.

The next question of Mr. Knap is to Mr. Spalt and goes to acquisitions. Apparently, according to an article of the newspaper Kurier, there are some acquisitions under investigation in the Czech Republic. And up to now, nothing transforming has been said, but interesting opportunities in all markets and also in Austria are being observed. Most recently, if you could see PK business of ING Austria, Wien [Foreign Language] 23rd of March 2021; Hungary business of Germany Commerzbank dpa in the 8th of April '21 and Kronen Zeitung 1st of May; Europe business of Russian SberBank, again, Kronen Zeitung 1st of May 2021; Nova KBM bank, second largest bank in Slovenia; from [ Burziana ] insider #193-21. With the takeover, we would become the market share of 20.5%, and these things interesting to us as well. Acquisition in Hungary, despite VIG's current problem there is acquiring Aegon business. And in which of our markets do we have our sights set on inorganic growth?

Well, thank you very much. We are currently observing an increased trend towards consolidation on the banking market in our still quite fragmented markets, and we think this will apply to all market. All our markets have a good potential and have a high integration potential as well if the fit is good and the price also interesting. We observe all the markets. We wish to have an active role. And as soon as we do have concrete plans, we will issue an information. Thank you.

The next question goes according to the -- to Mr. Dorfler. In the table of the figures, our stock exchange capitalization has been the lowest in the last years, knowing that the ledger was the highest. And this is a dramatic development. And this is for the financial year 2020, Page 111, but there has been no reduction of the value. Actually, the price per share is still under the value of EUR 34 per 31st December 2020. So what steps do you take so that the price per share goes towards the ledger price? And I know that there are different measures and taken like the acquisition of own shares. For the time being, we are 6% of our own capital, and this is the report on the financial year 2020. Page 28 -- 282, Note 44.

So thank you very much. Mr. Knap, yes, you most probably know that -- and your question is a very important one. Many things have changed. And I have a look on my chart. We are at 34 39. So actually, this answers already part of your question. In general, we cannot take into account the daily value of our share because we have to manage our company, our group in a profitable long-term basis and therefore, also be responsible to our investors. And you know that because of the COVID pandemic-related situation, there have been huge changes in values. And for instance, yesterday, the closing was at EUR 7.4 billion. So EUR 4 billion higher than at the end of 2020. And the trend is positive, and analysts also are convinced that the outset (sic) [ outlook ] will be positive. And you will actually see that the report as well. As far as your question goes for the share buyback. As an alternative to dividend payments, the supervisory authority makes no distinction, both amount to reduction in the capital position. And the hope is that the ECB's restrictions on dividend payments expire, as it has been said by our CEO and our Chairman Rödler as well, that with the September 2021 we will be in a position again to pay dividends and as well as buybacks, provided there are no other opportunities for capital utilization. And of course, we are ready to do that. And we have to take also into account other points for share buybacks. And for the time being, we do not have any concrete plans in doing so. Yes, the book value is at about EUR 34 by the end of the year. Q1, we don't have any book value. And the book value discount to the share price has been resolved, and it's only a quarterly value that is being published. Thank you.

The next question of Mr. Knap is to Mr. Spalt. In the corporate governance report and in the -- on Page 94, you have all the different functions. Peter Bosek was the Vice Head Chair of the Supervisory Board of [Foreign Language] here in AG Vienna Insurance Group. And the question was, will that be -- will he be replaced and by whom?

Peter Bosek, actually in the course of his career change, resigned by the end of 2020. And so far, we have not appointed a successor.

Thank you. And also Mr. Knap, please accept our apologies. It's not in the order in which you asked the questions that we deal with them, but I have them on the screen. It's about the democracy of the shareholders' meeting, and this has been actually asked 5 weeks ago. Bank in [Foreign Language], which was not a savings bank, actually now has a new cost of EUR 50 plus 20% of [ VAT ] in order to actually be registered for an AGM. This is the end of democratic AGM. And you should not forget that the bank also has depo fees. And therefore, the question is, do you have fees for the allowance of participating to AGMs? And if not, do you actually have plans in doing so in the medium or long term?

Thank you very much. Well, the saving banks are, of course, entitled to take their own decisions. And we have a very uniform policy as far as our fees are concerned. And we do not have any fees for the depo certificates for Austrian companies. For foreign companies, yes, we do. And we, whenever have such a request for depo certificate, we always give the information what the costs will be.

Thank you, and there's still a number of questions, and they are all to Ms. Habeler-Drabek. First of all, the in situ audits and references made to Pages 6 and 103 of financial year 2020. The audits have been done in situ and [ some of the site ] remarks have been made to the loan, IT and risk model that still were open by 31st of December 2019. Have these points been dealt with?

Well, let me first of all say again, on on-site audit. On-site audit is not extraordinary. That is a normal happening. And this is also usually inscribed in the regular audit plan. So on a regular basis, you have on-site audits. As far as the open points are concerned, we have closed 19 and the open points, 48, has been dealt with in the timely framework that we actually convened together with the authorities.

Then okay, thank you very much. What is actually the workload with in situ audits?

Well, we shall not underestimate that. It's quite immense. It has been taking place in '19 and took place in 2020. On average, we have 3 months per audit, taking 100 to 200 data sets need to be made available. And this leads to the fact that such an on-site audit, you have 10 to 30 employees that are almost exclusively working on these requests. 2020, COVID pandemic have not made things easier. This is a heavy workload for all the colleagues involved. I can also give you contribution for the -- in different credit institutions, [ FMR ]. For the year 2019, paid in 2020, we paid EUR 13 million. And for the year 2020, we don't have the figure yet.

Thank you very much. The next question, again, to you, Ms. Habeler, for the year 2021. 2021, there were some financial scandals. And for the hedge fund Archegos Capital or the Greensill Capital, is Erste Bank Group involved? And if so, what amount?

No. We had no business relations with Archegos Capital or Greensill Capital or Greensill Bank, and have no implications with other financial scandals, be it national or international.

Thank you. So next question, again, to you Ms. Habeler-Drabek. What are the authorities that led regulatory agencies conducted on-site inspections?

Well, in 2020, following on-site reviews took place with the reviews commission by the ECB performed by national supervisors due to COVID-19 in 2020. On-site reviews have mainly taken place virtually and covered credit risk for SMEs, small and medium enterprises, group large corporates, so process-oriented and credit and market risk models. One group large corporate inspection was actually not led. So no final report on it, just recommendations.

Thank you. And then last question also to you, Ms. Habeler. What are the main recommendation -- material findings were addressed by the supervisory authorities? Which material findings of the regulatory authority have been implemented and which are in our areas of activity?

The majority of the findings related to models, validation, data quality, reporting documentation and policy to be very concrete as of 2020. The findings were allocated to the following areas: 72 finding in credit risk methods, 14 group security, 12 credit risk portfolio. All the findings were addressed by a risk mitigation plan, agreed with the supervisory authority and being processed. And many of the findings have been or will be closed during the year 2020, 2021.

Thank you. This was the last question of shareholder Knap. And because it is almost 1 p.m., I would like to actually take the break. As initially said, we have 25 minutes break. It is 6 minutes to 1 p.m., and I therefore suggest that we reconvene at 20 past 1. I now interrupt the AGM for this break. Thank you. [Break]

Dear shareholders, ladies and gentlemen, we'll now continue with our AGM. We'll continue reading out and answering questions. Let's now move on to the questions put by [ Josef Baumüller ], voting card 999. Now he also asked that a prologue be read, preceding the questions. [ Josef Baumüller ] states the following. Dear Professor Rödler, ladies and gentlemen, it's an honor to put 14 questions to you and to contribute to the success of the Erste Group's AGM and hopefully also to enriching an important subject. Now what we see is that sustainability becomes more and more important. Sustainable finance also becomes more important. And then I've also had a host of talks with representatives of the company, the stakeholders and those accompanying the company in the market. And I'm very grateful for this. With a view to the topics of relevance today, the past fiscal year and the first months of 2021 have been quite interesting. And I would like to judge them in an ambivalent fashion. So there's a plethora of documentation and processes that have been set in motion. Driven by a mass of EU regulations, as well as the coal exit strategy, Erste Group took a first leap in this connection, and others followed suit. And then nonfinancial reporting. Well, here too, major headway can be observed. For example, on the database to determine indicators as well as compliance and anti-corruption and anti-bribery policies. Well, technically speaking, technologically speaking, these are developments that must be recognized and acknowledged and appreciated. But what we also should point out is that in many other areas, players in the market have launched broader initiatives and have garnered public attention. Many experts feel that these initiatives have been more prominent than the achievements made by Erste Bank Group. So in the European financial sector, there's a lot of pressure exerted on players. It's my hope that those responsible will pay heed to this and will respond favorably to this and will actually steer the Erste Group towards more and greater sustainability. What are the preconditions for this? Well, I think the Erste Bank Group is well positioned to achieve headway, and it also has a considerable size. So I think it's well placed to make additional progress. Finally, I would like to thank all employees at all levels of the company. Thank you for your commitment in this very challenging year, 2020. You've already achieved first success, and you've made the success possible. In terms of nonfinancial reporting, let me briefly mention Mr. [ Iaogi and Image and Noige ] and let thank them very much for their untiring commitment. I wish you all the best for the future. And I also wish you a lot of health in these ambivalent times. So that was a letter I received from [ Josef Baumüller ]. And let's now turn to his questions. The first questions are directed to Mr. Spalt. Now could you briefly explain that in -- I would like to ask you briefly where you stand in your implementation projects, the EU taxonomy regulation and what further steps you are taking to ensure timely preparation for the associated reporting and management obligations. For the general understanding of the audience, I would also be grateful if you could briefly explain the content and requirements of this regulation in general, and for Erste Group in particular. Mr. Spalt?

Well, thank you very much. Mr. [ Baumüller ] for the prologue and this very constructive criticism that you leveled at us that I take seriously. Such a dialogue, of course, helps us improve our performance and develop further. On your question related to taxonomy. Now reporting on sustainable activities for [Technical Difficulty] [Foreign Language]. I'd say that on the first of January 2022, while this new directive is to be transposed into national law, now details and specific aspects will be then published in June 2023. Erste Group, of course, will focus on implementation and will -- to meet all the requirements. It's a work in progress. Some requirements are not clear yet. Some requirements have only emerged quite clearly. It's a path that we have already embarked on. And we will make sure that all of these requirements can be met in a timely fashion. Now standards on other objectives. Well, by the end of 2021, they will be enumerated. And on the 1st of January 2023, they will be implemented. Now the application of taxonomy will proceed in a step-by-step manner. Now taxonomy is a unified system of classification and means reporting duties at EU level on ecologically sustainable business activities. It's supposed to provide incentives, and it's supposed to direct capital flows to sustainable projects.

All right. The next question also directed to Mr. Spalt. Now in light of the draft of the EU directive published on April 21, 2021, which is intended to improve the standards framework for nonfinancial reporting, I would like to ask you for an initial assessment of the need for action that you already perceive for Erste Group, as well as your position on this draft directive.

Now the new directive, corporate sustainability reporting directive, is to be transposed into national law by EU member states as of the 1st of December 2022, So this is yet to come. Fiscal years starting on or after January 1, 2023 will be covered by the new directive for the first time. Thus, it concerns the reporting year 2023. Erste Group Bank AG will work intensely on an implementation. There are major requirements on top of it; data management, for example. Just like other financial and nonfinancial elements, this will be part of our reporting in general.

Thank you. And the next question is also put to Mr. Spalt. On the website of Erste Group, under the heading social responsibility, Erste Foundation is mentioned as the main shareholder. Now from a sustainability perspective, I believe that this represents a USP, a unique selling proposition of Erste Group in an overall context. I would, therefore, like to ask you to explain what role the objectives and priorities of Erste Foundation play with regards to the sustainability strategy and also with regards to the Erste Group's general business strategy. Could you be as specific as possible? Furthermore, I would like to ask you to briefly state through which specific activities in the area of sustainability Erste Group can make the greatest contribution to the goals and priorities of the Erste Foundation. What role do social or sustainability innovations play in this context, and what measures are being taken in this direction? Thank you.

All right. By way of introduction, now the Erste Stiftung Foundation, as our shareholder, is an organization independent of Erste Group, and therefore, it does not participate in the group's sustainability strategy. However, and you're right, it's a USP, a unique selling proposition. Our business purpose is generating prosperity for the region, and the purpose of the foundation is actually quite similar. So there's close alignment regarding the goals of these 2 organizations or entities and this, of course, drives efficiency goals forward in our region. So yes, I agree with you. We're cooperating quite closely, but we are independent of each other. And there is an alignment, as I've just said, regarding the goals of our 2 organizations. And we've also jointly initiated several projects in the area of social banking, such as Zweite Sparkasse, which you know, it's a very important project involving the bank and the foundation. And then there's the Erste Social Finance Holding, which has proven to drive joint innovative thinking, and this has a positive impact on society as part of Erste Group's ESG strategy. We aim to further strengthen the social sector. The financial inclusion of low-income individuals and job creation goals, leveraging the Erste Foundation's network and experience if and when needed, and this is what we do on an everyday basis.

Thank you very much. All right. The next question is put to myself. So what about the current legal framework? What about nonfinancial reporting? Couldn't the Audit Committee deal with this? And then the EU Commission came up with a proposal on the 21st of April 2021 on how to improve nonfinancial reporting. So please share with us if the published nonfinancial report has been dealt with by the Audit Committee and what specific audit action has been taken. And what expertise you will find in the Audit Committee, or it needs to be built up? Well, let me say this. The consolidated nonfinancial report has been dealt with and is being dealt with in the Audit Committee. It's discussed in great detail before it's handed over to the extended body. The chairperson of the Supervisory Board, myself. I'm also the Chairperson of the Audit Committee. Well, I've been involved in the selection of the auditor of the consolidated nonfinancial report and have always been informed about the status quo of reporting. The auditors, of course, have been invited to Audit Committee meetings, to receive or to submit written and oral information, and to be at our disposal for questions, the Supervisory Board Chairman and the Chairman of the Audit Committee, myself. Well, during the year, I deal with legal amendments as well as recommendations pertaining to nonfinancial reporting as well as sustainability. And of course, the very important contributions you make, well, I read them with great interest in journals, trade journals. Okay. The next question put to me as well. It's a demand that's been met -- that's been made now to actually appoint a sustainability expert in the Management Board, just like you have financial experts as a role model in the Audit Committee. So an example from the ATX Prime is the auction post, and other companies, too, are also considering this. So as far as the Supervisory Board of the Erste Group is concerned, this has not yet been considered. So is there need for action and are further plans underway? Of course, it's important for this person to meet all the requirements, but let me also refer to the usefulness of this position, because the financial expert has proven to be quite important. Well, there are no regulatory requirements, I mean, to actually have such an expert in the Supervisory Board. But regardless of the name, sustainability expert, we have to point out that sustainability is quite an important issue for the Supervisory Board in its entirety. The Supervisory Board is quite diverse and quite complex and discusses these issues at great length. So we believe that the chairperson of the Supervisory Board and the members of the Remuneration Committee and myself, we believe that all of us will focus greater attention on the issue of sustainability. And we will also, of course, make contributions to discussions, will educate ourselves further, and we also will organize training events for Board members. There are individual Supervisory Board members, who, as for specific issues of sustainability are concerned, are specialists. Let me just mention Mr. Hardegg, my second deputy, who knows a great deal about agriculture. And he knows a great deal about agriculture as well as sustainability. And I, myself, while I'm an anti-corruption expert, I'm a Board member of Transparency International, so really, across the board, no pun intended, there is a great deal of expertise. But of course, we'll evaluate things further, and we'll see whether it makes sense to actually have a representative bearing this title on the Supervisory Board, which brings us to the next question put to me. What are the sustainability contributions? Mr. Schuster is alluded to here. Well, what contributions has he made in terms of sustainability? Well, Mr. Schuster is not present today, but we have collected answers from him, and I'm going to read out his answers. For years, we have tried to enhance diversity on the team and whenever investments are made. Since last year, we have set ourselves clear-cut ecological goals. We are assessing our investments accordingly in a very structured manner by applying ecological and social criteria in order to tap into potentials. We also want to raise awareness. We want to enhance sustainability overall. This, of course, results in specific figures. And I hope that the next generation of entrepreneurs will perceive this as a positive impact. The next question concerns Mr. Schuster as well. So what has been the largest setback or what has been your biggest failure so far? Mr. Schuster says the following. Well, I can -- I want to focus on sustainability, but I can't do that always. And sometimes, decisions are made by having short-term goals in mind. Sometimes, I haven't driven home this message to the founders. And this is a failure. And then another question put by Mr. [ Baumüller ] to Mr. Schuster as well. So what are your personal goals, Mr. Schuster, in terms of your work here during your new term? Well, I hope that I can make use of existing experiences, and I hope that I will be able to support initiatives. What we need is corporate energy, entrepreneurial energy, to overcome challenges, and I want to use this expertise. So that's what Mr. Schuster says. The next question concerns, again, Mr. Schuster. So Michael Schuster, could you please comment on sustainability, sustainable, responsible business activities and social banking? So what is your take on this? Now Mr. Schuster has replied to this by saying the following. And I, again, read out his answer. As investors, we finance young companies, and that has a direct impact on society, employees and the general climate in Europe. We make sure that we invest in business models that are inclusive, ecologically sustainable and social. As investors, we can only influence things indirectly. But of course, we can make sure that these companies also appreciate and embrace these values. Many of the companies that we bankroll democratize access to services and information. Social banking is a contribution to greater democracy and inclusion. As far as I see things, this is part and parcel of corporate social responsibility displayed by a bank. So this is what Mr. Schuster has to say and this ties in quite nicely with Erste Group's strategy as presented by Mr. Spalt at the beginning of our AGM. The next question is put by Mr. [ Baumuller ], and it's put to me. So during the AGM of Austrian Post on the 15th of April '21, a statement was made that has quite a big impact on sustainable activities in Austria, so voluntary external audits. The company, of course, is carrying out these audits, security levels have been set a bit lower. And sufficient security of reporting has been mentioned. So what about indicators? And the next step, another sufficient level of security is to be made available. What about the AGM of Telekom Austria, dating back to the 14th of May 2021? Similar considerations were also made there. Now many may consider this a terminological finesse or subtlety. But it's a revolutionary change towards more reliable facts on sustainability. The commission proposal of the 21st of April 2021 presages developments, legal developments in the coming years. So could you now briefly explain to us if Erste Group considers these developments? And could you please also give us first indicators on substantive and time-related plans? Well, as you know, limited auditing security is the standard that we comply with. And this is also what the Supervisory Board has specified. It wants to know for sure that those involved have nonfinancial information, that they are in keeping with legal requirements, and our auditors have said that this is the case. And I'm also reading this in your articles, of course. Now in the future, we may consider other developments. So sufficient level of security could well be considered. But of course, the substance of nonfinancial reporting, the content of nonfinancial reporting, well, that needs to be standardized. Currently, this is not yet the case, and that's why it's quite difficult for auditors to determine the depth of auditing, so that certain parts of nonfinancial reporting could be delved into further. But we are working on this. There are many international initiatives. So the form and the content of nonfinancial reporting, well, this is to be standardized based on the sectors. And I hope that we will then also enhance the -- or reconsider the intensity of reporting. So the next question is directed to Mr. Spalt. So what are the services in connection with nonfinancial reporting? What business partners have been involved and what fees have been paid out? Could you also please tell us how much was paid for voluntary nonfinancial reporting?

Erste Group Bank for drawing up the nonfinancial report did not use any consulting services, and external audits of nonfinancial reporting, well, regular market fees were paid, Let me also say that as chairperson of the Supervisory Board, I have been involved in the selection of the auditor, so this was a joint job carried out by the management and supervisory boards. And we made sure that the consultancy fee was adequate.

All right. The next questions put by Mr. [ Baumuller ] refer to myself. So the remuneration policy for management and supervisory boards. So compared to the 2020 version, there has been a change. Could you now please provide me with the following information: What are the most important changes that have occurred? Well, let me say this. What we've reviewed is variable long-term remuneration components for the management board by coming up with a long-term remuneration plan. So a long-term incentive plan that has already been mentioned has been introduced. This long-term incentive plan has an impact on the amount of variables and makes it dependent on certain criteria. And that's how remuneration is closely linked to the long-term performance of the Erste Group and thus promotes the positive and sustainable development of the company in the interest of shareholders and the general public. And Section 70 of the Stock Corporation Act makes mention of this. Erste Group Bank AG will use shares, performance share units, PSUs and cash payments as variable compensation components starting in the performance year 2021. In this way, the variable compensation of management Board members is strongly aligned with the shareholder perspective, and has been designed for the long haul, if you like. So it's long-term performance criteria that have been applied for a variable remuneration. Now the next question put by Mr. [ Baumuller ] has been directed to me. What consulting services were obtained for this, meaning the revised remuneration policy, from which persons or entities, and what fee was charged in each case? All right, as far as remuneration policy goes, well, HCM International Switzerland was used for consulting services. Here, a standard market fee was charged. It's somewhere -- it's hovering in the lower 5-digit figures. And the next question is put to me, again: what are the specific ESG targets, meaning environmental social governance, for board members, for the members of the Board of management, what are these targets in detail that are currently applied on the basis or as the basis for remuneration? Now for 2021, sustainability has been included in the KPIs of the CEO as well as CRO and business board members. For the CEO, related targets include defining and setting specific sustainability targets regarding the impact of the group's business activities in our markets, both socially and environmentally and in terms of the climate, then optimizing reporting and transparency to implement sustainability targets; and third, providing necessary resources for related activities. That's, of course, a very important issue. And that's why the CEO deals with it. The CRO's objectives relate to designing and taking basic rollout steps related to the implementation of ESG risk policies. Those for the business boards or board members relate to the development of adequate sustainability targets and corresponding risk/return measurements for the corporate and retail businesses. And I now move on to the next question put by a shareholder, Mr. [ Baumuller ], a question directed to Mr. Bleier. In March of this year, Erste Asset Management excluded Lenzing from its ESG investment universe after the events of the so-called mask affair surrounding Hygiene Austria became public. I may ask you here for an account of the current status of your dialogue with the company. In a recent blog post a reopening was announced. This is the URL of the blog. But the reasons for this are not entirely clear or comprehensible. In this respect, I would also ask you to provide a more detailed explanation of what, in concrete terms, led to a discontinuation of the previous reason for exclusion, and what makes you expect a substantial improvement in Lenzing's obviously misguided relevant due diligence mechanisms. Mr. Bleier, you have the floor.

Thank you. Mr. [ Baumuller ], in March 2021, we saw that asset -- Erste Asset Management had actually excluded Lenzing from the universe of ethically sustainable funds. Now investment and de-investment decisions taken by Erste Asset Management have been independent, our bank has no influence. We have no way of influencing this at all. The exclusion was primarily due to the allegations of fraud. Chinese products were sold under the title Made in Austria. Lenzing has since then taken clear-cut steps in order to set the agenda right again. So shares have been shed and Lenzing has said that it would reorganize investment management structures in order to avoid similar developments in the future. So exclusion criteria would then fall by the wayside. And in the future, it should be possible again to include Lenzing shares in the ethically relevant portfolio.

Okay, next question is put to Mr. Spalt. So what have been the 3 most important results of the fiscal year 2020, according to Board members, allowing Erste Group to move closer to social banking during the last AGM? This was mentioned as the Erste Group's USP. Now have you been successful in this regard?

Social banking in 2020 followed the goal to support financial inclusion of customers of Erste Bank and to help them keep -- stay alive. In 2020, more than 10,000 customers were supported, EUR 15 million were spent for founders, for people jeopardize of poverty and for start-ups. And financial sustainability in social banking, what does that mean? We don't want to make profits. We want to achieve a black zero, so to speak. We don't want to make profits on social banking, and we hope that we can build and expand this business. And a COVID-19 bridging initiative was started in 2020. And EUR 25 million were placed for nonprofit purposes in the markets of the European Union, as the bank supports social institutions and also takes over interest payments for newly taken out loans. So we work together, i.e. the bank and the foundation work together for a social purpose.

Next question is directed to Mr. Spalt. A future related topic, which will result in legal action is the topic protection of the supply chain, the Supply Chain Act, as it is called. If we compare ourselves with Germany, in how far the due diligence mechanism of Erste Bank sufficient to comply with the expected challenges or which adjustments seem necessary? Do you already discuss this topic in the company, and which projects are initiated in this respect?

Thank you very much. I will take over. Mr. Chairman. Compliance with all legal provisions and standards to protect human rights and the environment are of extreme importance in the purchasing process along the total supply chain. Some of the future applicable provisions are not so clear at the moment and implementation in the national legislation has also not taken place yet. We are very well prepared with our processes, and we already have due diligence mechanisms in place. Concrete adjusting measurements are still necessary in our supply chain. Allow me to mention that we have an ethical and environmental code of conduct, which applies to all suppliers of our products and services. We have ethical purchasing management. And we -- and our suppliers must prove that they are certified in ethical purchasing management and that they also have sustainable supply chains. Partners are checked against international sanction lists, compliance with social ecological and ethic standards in the supply chain is guaranteed by standard -- by a standardized poll of our partners in the areas: quality, governance, risk, social, sustainability, [ pip ] and finance. And the supply chains are communicated transparently in all media.

Now 2 questions to Mr. Spalt, 2 last questions by Mr. [ Baumuller ]. Could you tell us how you comply with the data collection obligations in relation to the disclosure ordinance and the taxonomy ordinance? Which questioners do you use? How do you receive that of the business partners of Erste Group? Which progress was made? And is the current situation satisfactory with respect to the data situation? Which incentives are connected with the sustainability of business partners? For example, are loan conditions depending on the emissions of the business partners? And how is this expected to develop?

The new EU Directive on sustainability-related disclosure relates to our asset management business, in which we had strong ESG risk integration and disclosure. In the past years, we developed an internal best-in-class ESG rating, and on the basis of a number of exclusion criteria, we are applying the system to detrimental ecological and social activities. We procured that with the help of datacation analysis services of several ESG rating agencies. On 10th of March 2021, we published risk management and remuneration guidelines of Erste Group. Until the 1st of July 2021 we plan a group-wide implementation of an ESG scorecard for our credit and loan business, which is in the first step limited to large company and real property customers. This quarter doesn't reject transactions, but gives the Board a warning if the customer -- or the transaction is exposed to environmental, social and governance risks. In all cases, where we have received warnings we have a detailed ESG due diligence process. Of course, the scorecard is also the basis for a comprehensive ESG data collection about our customers. At the moment, we see limited availability of ESG done on the CE market, which will probably increase or improve due to the reporting obligations that are expected.

Last questions by Mr. [ Baumuller ], what are the most important, the 3 most important tasks in relation to social banking, which Erste Group took for the current year?

In 2021, in social banking, we defined the following goals. First, new loan volume for social banking customers is planned to be increased to EUR 60 million, that is to say by 20%. In addition, on social banking and sustainability, we'll be working closely -- more closely together in order to develop activities together. Thirdly, social banking activities are to be also included in the regular business lines in order to scale financial inclusion of customers. In addition, we have specific individual initiatives. A new equity instrument for social companies and social projects will be launched, which supports organizational growth and mitigates the consequences of the COVID-19 crisis. Or the Zweite Sparkasse, which might be new to you, that just started to give small-scale loans to people for housing purposes, people that otherwise would be excluded from the credit market.

Thank you. We already bring out some several answers and questions, several questions and answers. There is still a limited number of questions remaining unanswered. [Foreign Language] can only be answered if they are submitted within the next 20 minutes. All questions that will be submitted later cannot be answered. Furthermore, I state that a last motion of shareholders or instructions to proxies is also possible by e-mail, but only during the next 20 minutes. Motions or instructions being submitted after this point in time, will not be taken into consideration. And we'll also see a countdown on the screen in the coming 20 minutes. Okay, let's continue with the questions of shareholder [ Peter Mihil ] with the Voting Card 81836. The first question is directed to me. And is relating to results and remuneration of the management board, the remuneration of the Supervisory Board for the business years 2019 and 2020. After a middle year, the decrease in earnings was enormous and is minus 47%. RBI had only minus 34.5%. The salaries of the 7 members of the management board fell from EUR 15.137 million to EUR 12.906 million. That is minus 14.7% and RBI the remuneration of the 6 members of the management board were reduced by 30.4% to EUR 10.853 billion. Why is Stefan hesitant in reducing the remuneration of the members of the management board? I do not understand how you arrive at these values from the remuneration report of RBI, we take that 6 members of the Management Board received a total remuneration of EUR 10,813,000. The remuneration was reduced by 8% to 16% as compared to 2019. Erste Group Bank AG has 7 members of the management board that received a total remuneration of EUR 10.902 billion. The remuneration of all members of the Board as compared to 2019 was reduced by 19%. And if we simply compare the old board to the new Board, about 14%. In Erste Group for 2019 as well as 2020, the bonus for members of the management board was only given in phantom shares. And already mentioned that in the motion. And due to the fact that the share price in 2020 was lower, the bonus proportion was reduced by more than 34%. Next question of Mr. Peter [ Mihil ] is directed to Mr. Dorfler. The dividend Erste pays for a EUR 0.50 dividends, EUR 0.02 more than RBI. Can Erste Bank afford this dividend and when will be the dividend for 2019 be paid?

Mr. Chairman, Mr. Peter [ Mihil ], the short answer is yes. Without repeating what we heard in the contributions before is that we have a very strong capital position. And in spite of the corona crisis, the consolidated core Tier 1 ratio increased from 13.7% year-end 2019 to 40.2% in 2020. We expect regulatory relief by ECB, and that the difference to the thresholds for limitations of distributions was increased to 4.3% by the end of 2020. The planned dividend payment of 0.5 cents per share is backed by capital positions in the parent company, approximately EUR 3 billion.

Next question by Mr. Peter [ Mikil ] is directed to me and is relating to the remuneration of the Supervisory Board. Erste has 14 members of the Supervisory Board that receive a remuneration of EUR 1.6 million, 10% more than the year before. RBI has 12 supervisory board members, and the remuneration is approximately EUR 1 million. There was no increase. Does Erste really need 14 members of the Supervisory Board that receive 56% more remuneration than the members of the Supervisory Board of RBI? The Supervisory board -- is the Supervisory Board of Erste better? And if so, why can't you take it from the results? The remuneration of Supervisory Board members is composed of the actual supervisory board remuneration and the meeting fees. The Supervisory Board remuneration was let down in the Annual General Meeting in May 2018. And was adapted year-by-year, for example, for a simple member per year, a Supervisory board fee of EUR 60,000 without meeting fee. Dear Peter [ Mikael ], you also asked this in the past AGM, and this is why I would make everything clear. I would like to make everything clear. The remuneration of the Supervisory Board has not been increased since 2017. Since there is no compensation of inflation, we have a reduction in real terms. Only the amount of meeting fees is dependent on the number of meetings that took place and the meeting fee per meeting is EUR 1,000. And this hasn't changed as compared to 2019. I don't know how you arrive at 14 Supervisory board members. In 2020, the Supervisory Board of Erste Group consisted of 12 representatives. Only in November 2020 a change took place, as we have already heard in my report at the beginning of the AGM. Mr. Griss and Mr. Rasinger left the Supervisory Board. Mr. Santner and Mr. Simor became new members of the Supervisory Board. And this is also the reason why you see 14 names for Supervisory Board members in the table in the annual report. But at each time, we only have 12 representatives of capital. The question whether the Supervisory Board of RBI or Erste Group is better, is not something I can say. Of course I have an opinion, a personal opinion, but I'm not quite sure whether this is an objective opinion. What I'm certain about is that the supervisory boards of both companies do a very good job. Next question of Mr. Peter [ Mihil ] is directed to Mr. Dorfler and relates to the cost/income ratio. Erste has 59% as compared to 56.8% at RBI. What are the reasons for that? And what are the goals of Erste for 2022 and 2023? Mr. Dorfler.

First of all, I'd like to point out that our medium-term goal is a cost/income ratio of 55%. And we are confident that we will achieve this goal in spite of the COVID crisis. And we hope that we can -- and we are sure that we can achieve that goal in 2024. As far as 2021 is concerned, we are aiming at increasing revenues and reducing expenses, and thus contributing to our operating results. And if we manage to do that, the cost/ income ratio will be below 59% in 2021. But this is not the only profitability goal. And of course, there is return on equity and other factors that also come in.

Next question also directed to Mr. Dorfler relates to the CET1 ratio. Markets difference, 12.8% and 13.6%.

I don't understand the 12.8 or 13.6. Maybe you are mentioning figures of RBI. We have neither 12.8% nor 13.6% in relation to the CET1 ratio, neither in '19 nor in '20. At the end of 2019, we have reached 13.7% CET1 ratio and at year-end 2020, the CET1 ratio was 14.2%. Maybe the figures are mixed -- our figures are mixed with RBI's figures.

Next question also relates to Mr. Dorfler, it relates to the difference to share price and book value. The share price fell in 3 years from 40% to 29.5%. This is 26%. RBI from 29% to 18.25%. This is at 7%.

Okay. Let me react to the first part of the question, because the second part of the question is a statement and not a question. As you can take from the annual report in the first pages, the book value at the end of 2020 was EUR 34 per share, and increased from EUR 32.9 million in 2019 to EUR 40 million. Today, the share price is approximately 34.3. So we are currently hitting our target for the year-end.

Next question also directed to Mr. Dorfler. Which part of the results is due to corona?

Thank you very much, this is a very important question, because this question is very important as far as the interpretation of our results are concerned. In the summary of Mr. Spalt, you already heard about the main drivers of the 2020 result, risk costs, which we booked early in 2020, and risk costs were the main driver for the result. So risk costs were the largest driver in the decrease of operating profits. And the COVID pandemic had an influence on revenues as well as costs. The largest part of costs related to traveling activities, but also a further training and education of our employees. And also marketing, where we saved money because activities were limited as far as the revenue side is concerned. In March, April last year, the trade and fair value result was heavily hit. In the rest of the year 2020, we caught up a substantial part of the slump in March and April, but not 100%. We think that 5% to 6% of our revenues, the decrease of our revenues is caused by corona in the amount of 5% to 6%. Of course, we cannot clearly identify what was caused by corona and what was by the COVID virus, and what was caused by other environmental factors.

Next question to Mr. Spalt. What about short-time labor in 2020?

No. And we are not planning to introduce it in 2021.

Next question to Ms. Habeler-Drabek. The NPL ratio is 4.9% in Erste Bank, RBI has 1.9%. Why? What is planned to reduce this factor? Are you using a different measuring sticks?

The NPL ratio of Erste Group at year-end 2020 was 2.7%. Of 4.9%, Mr. Peter [ Mihil ] are taking from the result 2016. As Mr. Spalt already said in his statement today, 2.7%, only slightly above the excellent 2.5% in 2019. Looking at the first quarter 2021, the NPL ratio is slightly below 2020 at 2.6%. What was the reason why we had an increase of an NPL ratio between 2019 and 2020? In the fourth quarter, we carried out an unlikely to pay check, and EUR 500 million in terms of NPL were the result of this unlikely to pay checks. It's not hard defaults, that is to say insolvencies. It's just a risk estimate of the future solvency of our customers against the background of the COVID pandemic. So only those customers where it is highly unlikely that they can pay their debt. In the course of the year, we expect that the insolvencies will rise. At the moment we have a relatively low level. And after the expiry of our aid measures, we expect an increase in the NPL ratio of 3% to 4%, which is markedly below the precrisis level of 2008, 5.6% and the years following the year 2008 where we had an NPL ratio of 9% to 10%.

Next question directed to Mr. Spalt. What are the gentlemen that receive such high salaries' plan to make Erste Group successful again.?

Dear Mr. Peter [ Mikael ]. I think Erste Group is successful. It was so before the crisis, and it will be after the crisis, and it was during the crisis. If you read equity research reports about the Erste Group and if you look at our results, you will see that we have a very strong growth potential, which is based upon our business model, that we have a good capital structure. Also in the international comparisons we have the right business model. We are doing business in the right regions. We already established a strategy in 2019 and published this on the capital market, a strategy that is a growth strategy. We want to transform the capital market. We want to be efficient. This is what we do. The net result 2020 reflects our estimates of the pandemic on the liquidity of our customer -- on our customers. It was a difficult situation because we had no certainty. So please watch us how we master the crisis also in the long run. But we have a very robust business model. We have good growth opportunities, and we can organically grow and this is a fact. Thank you.

Thank you. The next question is to Mr. Schaufler and is about George. George is working quite well. And can I assume that there will be no fee attached to it, because as far as no fees and savings banks right now are high enough.

Yes, George is working quite well. And we do not expect any change for George. There will be plug-ins that might be, according to your own needs, be added or not and then being paid for on as-you-go.

Then Mr. Peter [ Michel ] is -- has a question on the distribution of the remuneration of EUR 1.635 billion on the individual members. The remuneration was about 900,327.87 plus 277,000 for the year 2020. That in total is 1,177,327.87. The total amount in the distribution for each supervisory board member is included in the remuneration report 2020. The fee -- travel fees and the daily fee are EUR 16,000. And if you want to have the figures for 1 or 2 members, for instance for myself, it's EUR 214,000; Mr. Homan EUR 130,000; Maximillian Hardegg EUR 140,000. And all the other figures can be found in the remuneration report. So in total 1,177,327.87.

I now declare that the countdown is over. So any new question will not be answered anymore. We will answer, of course, all the questions we received until now. The next question is about the phantom shares, and it's the next question of Mr. Peter [ Mikael ]. It's about the phantom, so something that disappears. Or is part of it in the book's world. Phantom share is linked to the fact that its price is linked to the share price, but phantom shares are not traded on any stock exchange. But our calculation matter, so as to be able to translate the development of an actual share price over the full financial year. So it's a calculation figure. So that were the questions of Mr. Peter [ Mikael ]. Now it is [ Berthold Berger ] with 1,979. The first question is how many people attended the AGM last year. How many from Austria, how many from abroad, how many this year, how many from Austria and how many from abroad? In the last year, we had 1,476 people logged in. From Austria 1,296 and the rest from abroad. From other providers, it were 147 people, 125 from Austria, the rest from abroad. Today, and these are figures from 11:00 a.m., 378 people logged in, 352 from Austria. Now and on the next question to Mr. [ Berger ], again to myself. What did the technological setup camera team and Internet connection cost? In total, it did cost $23,238 for the AGM. For the Internet connection, we used our internal Internet connection, so no extra costs for that. The next 2 questions are addressed to Mr. Spalt. How many employees of Erste Bank Group were in working from home and how many today? Bernhard?

During the first lockdown, we actually reduced presence to a bare minimum. We had a 90% working from home rate and then this rate actually went to 80%, 85%. And this is still the value applicable. We hope that after our vaccination campaign, we will at least be at 50% in our central offices and headquarters. Of course, we need to comply with regulations of social distancing and 2-meter distance, so it will not improve further for the time being.

Next question, how many people for health reasons went to early retirement and what was the average age? In 2020, we had only 1 pension, early retirement for health reasons. We had 10 on a temporary basis, and they came back. Eight of them, sorry, came back. Next question I think has been asked, what is the share price. I think I can do it myself. So on the at 31st of March 2021, the share price stands at EUR 34.6. Yes. This would be contradictory, this is absolutely correct. That is the calculation value, but this value is not published, and we always use the end of the year value -- share value. And you always can at any point use the value per end of a quarter. Then again, questions to Mr. Spalt. Is the corona -- what is the corona situation for employees in Austria and abroad? And which country is most affected?

So 11th of May 2021, in the whole Erste Group, we had 3,917 positive COVID cases, out of which 400 in Austria. The country most affected is Czech Republic with 1,290 cases. We have vaccination going on in the Erste Group and the number of infected persons is decreasing.

Next question, what do you pay for social media and online marketing. In total, we paid 2.9 million for online marketing and social media. And online, in the total of Erste Group, we paid in 2020, EUR 15.7 million. And the first figure was social media. Next question, Mr. Dorfler. How much do you pay to the ECB for negative interest rate?

This is a question that you cannot clearly say for the ECB placements, and I can only say that we have EUR 35 billion placements at ECB and we have minus 0.5%. In that, also please note that on the other hand, we have the TLTRO facility. And therefore, we cannot easily answer that question, and it doesn't make any sense.

So next question to Mr. Spalt, "What are you paying for sports sponsoring? And what discipline are you supporting most?"

The whole of Erste Group spent EUR 7.3 million of sports -- on sports sponsoring. We have regional differences. It's from youth to running, football and e-sport. And of course, it's the Erste Bank Open Tennis tournament.

Next, Mr. Rödler, "What is the technical support, the camera team and the Internet connection costing for this AGM?" And the costs are EUR 11,950 plus VAT. And the Internet connection is, again, internal resources, doesn't cost any extra money. Then a question to Mr. Bleier, "As of -- which deposit amount customers do need to pay negative interest rate?"

Well, actually, we have a standard value of EUR 100,000. And for institutional investors, we have a fee. So EUR 100,000 as an average figure.

Thank you. The next 2 questions, to Mr. O'Mahony. "What do you pay for SAP?" No, no, no. Sorry. "What do you spend for security software? And how many people are working for it? And have you been hacked?"

Security is one of our top priorities. And to reflect this, we have dedicated security staff in all of our entities. They work in the areas of both security management and security operations, ensuring and focusing on the security of both the client information and our systems and infrastructure. Depending on the size of the entity, this dictates the number of people we have working there. But to give you an example, in our main Austrian entities, we have approximately 60 people dedicated to the topic of IT security. On the investment front, approximately 5% of the IT budget is dedicated and spent on security. On security incidents and hacking, I think you will understand that we do not give any statements on any specific incidents on this topic. Thank you.

Thank you. And now the other question, "What do we spend [ both keep on phase appears ] ? How much do we spend on SAP? What do you spend on SAP?"

I would ask for your understanding that we don't give specific numbers for individual vendors and partners that we work with. We have SAP as group solutions across our entities in both the finance and the HR area. And we spend, not just directly to SAP but on the actual running of these systems and further development of the systems, approximately EUR 15 million per annum.

Thank you, David. Mr. Spalt, the next question to you, "How many employees during the years 2019 and '20 went into retirement? And at what age?"

Well, in 2019, in the group, we had, in the holding, 42; and in the group, 66. In 2020, in the holding, 23; and in the group, 88. Average age was 63.4 for men and 60 years for women. Thank you very much.

The next question, "How many electrical or BEV vehicles did you buy? And how many did you lease in 2020?"

We had 47 electric vehicles being bought. In total, we had 72; 33 in Austria, and we don't have a percentage for leasing vehicles for [ that ].

Next question to Mr. Dörfler again. No, sorry. In 2020, we had 26 hybrid vehicles, 17 in Austria. In 2020, 11 new hybrid vehicles. But this was not the question but the answer. Yes, I'm sorry. I can't -- I'm confused because the screen is moving so much. So the question was, "How many hybrid cars or vehicles did you possess? And how many did you buy? And how many did you lease?"

So as a group, we had 26; 17 in Austria, including savings banks; and 11 were newly bought. And we do not have an exit rate for leasing. Mr. Dörfler, you can add something.

No, no, no. Chairman, this was totally correct.

Next question, it's a question to Mr. Spalt. "What is the amount that you spent for training in 2019 and '22 (sic) [ '20 ] for your employees?"

Well, we spent EUR 13.5 million for trainings within and throughout the Erste Group. Every employee has to follow a certain amount of training because this is done on a yearly basis, and some of them have certificates or recertification to undergo.

And the next question to Mr. Dörfler, you now may answer. "Do you have any branches in tax havens like Delaware and others? And what you do there?"

Well, first of all, I would like to say that establishing the fact that these branches, for many years and at least for decades, exist. We always speak about the tax havens as defined by OECD. We have in Delaware a 100% [ data ], which is commercial papers, and refinancing the branch in New York. We then also have rental of airplane and activities associated to it. We then also have the Erste Reinsurance S.A. in Luxembourg. And we have private equity funds, which usually are in Luxembourg or in the Netherlands.

Then a question to Mr. Schaufler. "How many branches have been closed in 2019 and '20 in Austria and abroad?"

Well, thank you very much. The total number of branches closed in 2019 is 1,797 and 1,665 in -- minus 132 in the whole group. And now going to Erste Bank Austria, we closed 5 branch subsidiaries, in 2020, 4. So that's a reduction of 99 -- to 99.

So next question is addressed to Mr. Spalt. "What was the employees' turnover in 2019 and 2020 in Austria, Czech Republic, Romania, Slovakia and Croatia?"

Well, let me start with 2019. On the group level, 12.1%; Austria, 7.5%; Czech Republic, 16.13%; Romania, 19.56%; Slovakia, 11.5%; and Croatia, 7.7%. Turnover in 2020: Group level, 10.2%; Austria, 7.9%; Czech Republic, 10.7%; Romania, 13.7%; Slovenia, 14.8%; and Croatia, 9.05%.

Thank you. Next question also to Mr. Spalt. "How many people do work in the back office for today -- as of today?" It says twice back office. I don't know. So thank you to the back office for answering this question, and thank you very much for the whole -- for the work performed during the year. So basically, I think that how many people work in the back office is the question.

Well, thank you, and thank you also for your good wishes. Well, the advantage of this virtual AGM is also that we do not have to all sit in the same room and, therefore, can protect our employees because they can work from their workplace and be reached in there if they are needed. I can give you the figure that [ at ] about 50 employees are ready to support us from a back-office perspective.

Thank you. Now we have a question to Mr. Dörfler. "What are the amounts spent on insurance for the car fleet 2019 and '20? And what insurance is it?"

We insure our vehicle fleet at Wiener Städtische. And the premium -- total amount of premiums for the holding and Erste Group was EUR 265,000; and for 2020, EUR 320,000.

Ms. Habeler-Drabek, next question goes to you. "What are the NFL '19 and 2020?"

In 2019, we had EUR 675 million. In 2020, it was EUR 387 million that had to be written off. And something that I'd like to underline is that those NFL [ rates ] were, in 2020, EUR 145 million. And in '19, it was EUR 160 million.

Next question goes to Mr. Spalt. Oh, it's a correction to the question "How many people are working in the back office? And how many external experts like lawyers and experts?"

Well actually, that's what I said, except people attending the meeting here and the AGM here in the room, we have Mr. Richard Wolf, our lawyer, and all others are back office of the Erste Group.

Then Ms. Habeler-Drabek, next question goes to you. "How much insurance premiums did you pay for the branches in 2019, 2020? And what insurance company are you insured with?"

We are insured with the OpRisk insurance program of the first -- of the Erste Group. And this includes not only buildings and fire hazards but any type of operational risks coming out of a bank business. So that is cybersecurity and everything. And the premium for the Erste Bank is EUR 9.6 million. These are the figures for 2021, but the amount remains basically the same. And it's VIG, Vienna Insurance Group. And it is reinsured under Erste Reinsurance located in Luxembourg.

And the last question of Mr. [ Berger ], "How many subsidies did you get from Austria and the European Union in 2020?"

Well, I guess that when you talk about subsidies, we can say, as Erste Group, we did not get any, be it -- and we said already it's a no about part-time working schemes. On the contrary, we tried to support our customers at best of our capacities, so as to be able to support them getting any subsidies available.

Okay. Thank you very much. And these were the questions from Mr. [ Berger ]. Now Mr. [ Klost ] with the card number 1,259. And according to -- on the election of Michael Schuster on the Supervisory Board, "Why a man with no experience? Why does he introduce himself in English? And why no alternative?" Well, I can say that we have proposed Mr. Schuster as a candidate for the Supervisory Board because we think that he is complementing the Supervisory Board in an excellent manner. Even though he is only 24 years of age, he is not a greenhorn. He is the founder of the biggest capture -- venture capital fund in Austria. And with his know-how in start-ups, digitalization and innovation, brings new perspectives and approaches to the work of the Supervisory Board and invests his own money in start-ups and, therefore, also has the view of the investor and someone whom we believe we can benefit from. We are convinced of our candidate and would not suggest him otherwise. For these reasons also, and not necessarily without going into legal [ impediments ] to have any alternatives, we left it to Mr. Schuster which language he would like to introduce himself. But due to the fact that the Erste Group also has a very large number of international shareholders specifically concerned with the topics that Mr. Schuster is working on, he considered it appropriate and justifiable that he chose English. And I understand that as well. And his English knowledge is absolute must, being a member of the Supervisory Board of Erste Group. But of course, the video has also been translated simultaneously into German. And then we have 2 questions of Mr. [ Christian Byrne ] with the voting slip of 1,977. And it is to Mr. Dörfler. "Please give the exact amount per calendar day per share being brought (sic) [ bought ]?" Can we link it to the other question maybe? "And we had -- you mentioned a short sale. Can you please say when the -- how many short sales you had per day? What was the lowest and the highest price? Who did you -- whom did you say you sell them to? And how much did you get per day?" And then comes the question that we heard previously.

Well, you actually refer to my report that I mentioned. And I'd like to underline that the short sales are linked to the financial year 2020 and 2021 until the 30th of April 2021. When we speak about short sales, not sometimes, but always, we have market-making trades and hedge business or derivatives. And they are in the market-making efforts. It's difficult to give you a date, and it is not possible to isolate a single business. And it's, if I recall correctly, 3,200, and the one that we had in the report. What is important is that these short positions are always on the lowest and that on the lowest value of 2020. And in the end, you have to add that we always leverage and cover it with other transactions. And normally, it's 20 to 100 basis points per transaction that we get as a commission.

So thank you very much. There are no pending questions anymore. And therefore, I hereby close the general discussion and debate. And as I said, no further questions are now answered. I now allocate and give the floor to the 4 special proxies and ask them that there are no further requests that they received. So I give the floor to Nikolaus Adensamer.

Thank you, Chairman. I did not receive any further requests and resolution.

Then the floor goes to Michael Knap.

Thank you very much, Chairman. I did not receive any resolution. But Staller Investments GmbH, I received an order, and I am citing from that instruction. Staller Investments GmbH, voting slip 1,885, represented by Rupert-Heinrich Staller, to Michael Knap. "I, Mr. Staller, am accepting the -- to accept the excuse of the Chairperson of having lost the [ red ] thread. But I'd like to say for the record, and I'd like to have it in the minutes to the whole of the agenda, the reason. Because beforehand, I gave 19 -- and submitted 19 questions that have been presented in a chaotic way and always being interrupted. It was logically numbered. It was stringent and clearly argumented (sic) [ argued ]. And therefore, some of the points were left unanswered. I do not understand how this could happen to a professional back office. After 1 year of new digitalization in -- due to corona, the crew of Erste Bank should be able to work in a digital world. For that, we as investors, we have to ask ourselves if there is not a certain intent so that with virtual events in the future, the right of investors to ask questions and get answers might be reduced, so that the AGM can be reduced to decisions taken by shareholders. And this is a development that I have to clearly mention as a risk for the future."

Now -- thank you very much. Now the word goes to Ewald Oberhammer.

I do not, Mr. Chairman, have any new requests.

Christoph Nauer, next.

Me neither, I did not receive any request.

Thank you very much. The Notary, Mr. Brix, will record this in the minutes. All right. I note that no further motions have been received, and we now proceed with votes on agenda items 2 to 11. I decree that the votes will be taken in accordance with the well-established subtraction procedure. This procedure that no votes and abstentions are counted and subtracted from the total number of votes present, and this then results in the yes votes. For the voting, the 4 special proxies use the so-called instruction cards or voting cards they received before the opening of the AGM. By entering instruction or voting cards in our IT system, the number of shares is recorded. In the case of yes votes, instruction or voting cards don't need to be held up, because the yes votes are determined using the subtraction method. Now for better recording and documentation, instructing or voting cards will be read out aloud by notary public, Mr. Brix. The voting procedure will be supervised by notary public, Mr. Brix, and computed by [ Daniel Bauer ]. Any voting [ bands ] will be automatically recorded for the votes and taken into account in the voting results. Let's now vote on Item 2 of the agenda resolution on the appropriation of net income for 2020. I now put to the vote the proposed resolution I read out at the beginning and made available online as a motion that the Annual General Meeting resolve the following: the appropriation of the net retained profits of EUR 644.700 million reported in the annual financial statement of the company as of December 31, 2020, shall be made as follows: a dividend amounting to EUR 0.50 per share entitled to a dividend shall be distributed, i.e., a maximum total of EUR 214.900 million. The company is not entitled to any dividends from tertiary shares or own shares. The remaining net profit will be carried forward to new account. The dividend payment date, and that's a deviation from Item 23.4 of the Articles of Association, which provides for payment of the dividend 10 days after the AGM, is May 27, 2021. And let's now put this to a vote. The shareholders or their proxy holders that are against this motion, could you please now raise your voting cards? [Voting]

[ Dr. ] Knap's voting cards and Mr. Oberhammer's, those were the votes against. Is there any abstention -- or are there any abstentions? Oberhammer and Nauer, those were the abstentions. Thank you. All right. This is the voting result. Yes votes, 314,416,478; no votes, votes against, 293,145. So that's the number of shares cast. And the total number of shares for which votes have been cast, 314,709,000 (sic) [ 314,709 623 ]. And the share of the share capital represented by those votes, 73.22%; abstentions, 6,246. I state that the motion has been carried with the requisite majority and has therefore been decided by the AGM, the proposed appropriation of net income. 1,858 objection raised, under 1,858. That will be put in the minutes. And this applies to all the items on the agenda, right?

Yes.

But formally, I have to raise my hand every time, except my premature passing. This would not allow me to raise my hand. All right. Let's now vote on the third item of the agenda, resolution on granting discharge to the members of the Management Board for the 2020 fiscal year. I refer to section 125 of the Stock Corporation Act. According to this, when voting on the granting of discharge to the Management Board, those shareholders who were members of Management Board in the 2020 fiscal year may not exercise their voting rights on their discharge. I now put to the vote the proposed resolution I read out at the beginning and made available online, as a motion that the AGM resolve to discharge the members of the Management Board who were in office in the 2020 fiscal year for this period. Now who is opposed to this motion? Could you please raise your voting cards, Knap and Oberhammer? [Voting]

Who abstains from the vote? [Voting]

Knap and Oberhammer. On item 3, well, this is the result: Yes votes, 312,985,000; no votes, 44,168. All right, the number of shares for which valid votes have been cast or the overall number of valid votes cast, 313,029,735. The share of capital represented by those votes, 72.83%; abstentions, 1,685,122. I declare that this motion was adopted by the required majority, that the AGM has therefore resolved, in accordance with the motion, to grant discharge to the members of the Management Board for the 2020 fiscal year. And Mr. Knap, of course, will raise an objection, yes, to be mentioned in the minutes, voting card 1858. And we'll record this in the minutes. Let's now vote on the fourth item of the agenda resolution on granting discharge to the members of the Supervisory Board for the 2020 financial year. I refer to article 125 of the Stock Corporation Act. According to this, when voting on the grant of discharge to the Supervisory Board, those shareholders who were members of the Supervisory Board in the 2020 fiscal year may not exercise their voting rights on the discharge. I now put to the vote the proposal for the resolution I read at the beginning of the AGM and also made available online; namely, that the AGM resolve to grant discharge to the members of the Supervisory Board who were in office in the 2020 financial year for this period. Now who is against this motion or resolution? Could you please raise your hands or voting cards? Oberhammer and Knap, thank you. [Voting]

Shareholders representatives that wish to abstain, could you please raise your voting cards? Oberhammer and Knap. [Voting]

I announce the following results: Yes votes, 294,008,757; no votes, 18 thousand (sic) [ million ] ,840,411; number of shares for which valid votes have been cast or overall number of the valid votes cast, 312,849,168. And the share of the share capital represented by this vote is 72.79%. Abstentions 1,866,173. I declare that this motion was adopted by the requisite majority, and that the AGM has therefore resolved to discharge the members of the Supervisory Board for the fiscal year 2020 in accordance with the motion. Mr. Knap, thanks for taking the floor.

I raise an objection on behalf of Staller Investments GmbH, and that's the voting slip 1858. Thank you.

Okay. Now on the fifth item of the agenda, election of an additional auditor for the audit of the annual financial statement, the management report as well as the consolidated financial statements and group management report for the fiscal year 2022. I now put to the vote the proposed resolution, a motion I read out at the beginning and made available on the website as a motion that the AGM elect PwC Wirtschaftsprüfung GmbH as auditors for the annual financial statements and management report, the consolidated financial statement and group management report of the company for the 2022 fiscal year, in addition to the Sparkassen-Prüfungsverband, savings bank audit association as statutory auditors. Now if you are against this motion, please now show this by raising your voting cards. Knap, Adensamer and Oberhammer. [Voting]

Now Is there anyone who wishes to abstain from the vote? Please raise your voting cards. Knap, Nauer, Oberhammer. [Voting]

And I announce the following voting result: Votes in favor, 313,667,890; votes against, 1,040,841; number of shares for which valid votes have been cast or the overall number of valid votes cast, 314,708,731; and the portion of the share capital represented by these votes, 73.22%; 7,138 abstentions. So this motion -- I declare this motion was adopted by the required majority and that the AGM has therefore elected PwC Wirtschaftsprüfung GmbH as additional auditors for the audit of the annual financial statement and management report, as well as the consolidated financial statement and group management report for fiscal year 2022 in accordance with the motion. Mr. Knap?

Again, I raise an objection on behalf of Staller Investment GmbH, shareholder number 1858. Thank you.

Okay. Let's now vote on the sixth item of the agenda, elections to the Supervisory Board. I now put to the vote the proposed resolution I read out at the beginning and made available online as a motion that the AGM should elect Michael Schuster as a member of the Supervisory Board with effect from the end of the AGM until the end of the Annual General Meeting, which resolves on the formal approval of the Supervisory Board for the fiscal year 2023 with effect from the end of the -- with effect from the end of the Annual General Meeting. Oberhammer, Adensamer, Knap, they were against. Now let's see who abstains. Oberhammer, Nauer, Knap. [Voting]

And this now is the voting result on item 6 of the agenda: votes in favor, 314,646,730; votes against, 50,746; number of shares for which valid votes have been cast or the overall number of valid votes cast, 314,697,476; portion of the share capital represented by these votes, 73.22%; abstentions, 18,393. Mr. Knap, please?

On this item, too, I would like to raise an objection on behalf of Staller Investment GmbH, voting card 1858. Thank you.

I will record this in the minutes, of course. I declare that this motion was adopted by the required majority and that the AGM has therefore elected Michael Schuster to the Supervisory Board in accordance with the motion. Finally, I would like to state that Michael Schuster had already declared before the election that he would accept the mandate if elected. Let's now vote on the seventh item of the agenda, resolution on the remuneration policy with regards to the principles for the remuneration of Management and Supervisory Board members. And I put to the vote the proposed resolution I just read, a motion that's already been put online, that's a motion that the AGM adopt the remuneration policy with regards to the principles for the remuneration of Management and Supervisory Board members, as made available on the website. All right. Who is against this motion? Please raise your voting cards. Knap, Nauer, Oberhammer. [Voting]

The proxies that wish to abstain? [Voting]

Knap, Oberhammer, Nauer. And this is the voting result: votes in favor, 308,502,199; votes against, 2,854,419; number of shares for which valid votes have been cast or the overall number of valid votes cast, 311,356,618; portion of the share capital represented by these votes, 72.44%; abstentions, 3,358,239. So I declare this motion was adopted by the required majority and that the AGM has therefore adopted the remuneration policy for the members of the Management and Supervisory Boards in accordance with this motion. Mr. Knap?

Thanks for giving me the floor. On this item, too, I would like to raise an objection on behalf of Staller Investment GmbH, voting card number 1858. Thank you.

Yes. We have recorded this. Let's now vote on the eighth item of the agenda, resolution on the remuneration report for the remuneration of Management and Supervisory Board members for the 2020 financial year. And I put to the vote I just read. Resolution has also been made [ available ] online. This motion reads as follows: we move that the Annual General Meeting adopt the remuneration report on the remuneration of Management and Supervisory Board members for the 2020 financial year, as made available online. Now if you are against this, please show this by raising your voting cards. Nauer, Knap, Oberhammer. [Voting]

Who wishes to abstain from the vote? Please raise your voting cards. [Voting]

Oberhammer, Nauer, Knap. And this is the voting result on item 8: votes in favor, 283,368,685; votes against, 27,770,069; number of shares for which valid votes have been cast or the overall number of valid votes cast, 311,138,754; portion of the share capital represented by these votes, 72.39%; abstentions, 3,577,115. I declare that this motion was adopted with the requisite majority and that the AGM has therefore adopted the remuneration report for the remuneration of Management and Supervisory Board members for the 2020 financial year, in accordance with the motion. Mr. Knap?

On this item, too, I'd like to raise an objection on behalf of the shareholder Staller Investments GmbH with voting card 1858.

Yes. Mentioned or recorded in the minutes. Vote on the ninth item of the agenda, resolution on the authorization of the Management Board to acquire treasury shares for the purpose of securities trading. I now put to the vote the proposed resolution I read out at the beginning and made available on the website as a motion that the AGM resolve to authorize the Management Board to purchase treasury shares for the purpose of securities trading. Now who is against this motion? Please raise your cards. Knap, Oberhammer. [Voting]

Now who wishes to abstain from the vote? Please raise your voting cards. [Voting]

Knap, Oberhammer, Nauer, Adensamer. I now announce the result of the vote concerning item 9 of the agenda: votes in favor, 310,528,181; votes against, 3,922,529; number of shares for which valid votes have been cast or overall number of the valid votes cast, 314,450,710; portion of the share capital represented by these votes, 73.16%; abstentions, 265,159. I establish that this motion was adopted with the required majority and that the AGM has therefore resolved in accordance with the motion to authorize the Management Board to acquire treasury shares for the purpose of securities trading.

Yes. Let me pitch in here. On this item, too, I'd like to raise an objection on behalf of Staller Investments GmbH with voting card number 1858. Thank you.

Okay. Thank you. Let's now vote on the 10th item of the agenda resolution, on the authorization of the Management Board to acquire treasury shares for the purpose of giving shares free of charge or at a reduced price to Erste Mitarbeiterbeteiligung Privatstiftung to its beneficiaries, employees, executives and members of the Management Board of Erste Group Bank AG or any of its affiliated companies or to any other company under section 4D, paragraph 4, subparagraph 1 of the Austrian Income Tax Act. And I put to the vote the proposed resolution I read out at the beginning and made available on the website as a motion that the AGM resolve to authorize the Management Board to acquire treasury shares for the purpose of giving shares free of charge or at a reduced price to Erste Mitarbeiterbeteiligung Privatstiftung to its beneficiaries, to employees, executives and members of the Management Board of the Erste Group Bank AG or one of its affiliated companies or to any other company under section 4D, paragraph 5 ( 1) of the Austrian Income Tax Act. Those against this motion, please raise your voting cards. [Voting]

Oberhammer, Knap. Who wishes to abstain from the voting? [Voting]

Oberhammer, Nauer, Knap. I now announce the result of the vote on item 10: votes in favor, 309,264,778; votes against, 5,187,530; number of shares for which valid votes have been cast or overall number of valid votes cast, 314,452,308; portion of the share capital represented by these votes, 73.16%; abstentions, 263,561. I declare that this motion has been adopted with the required majority and that the AGM has therefore resolved in accordance with the motion to authorize the Management Board to acquire treasury shares for the purpose of giving shares free of charge or at a reduced price to Erste Mitarbeiterbeteiligung Privatstiftung to its beneficiaries, to employees, executives and members of the Management Board of Erste Group Bank AG or one of its affiliated companies or to any other company under section 4d(5) subparagraph 1 of the Austrian Income Tax Act. Mr. Knap?

Thank you for giving me the floor, Chair. On item 10, I would like to raise an objection on behalf of shareholder Staller Investments GmbH, based on voting card number 1858. Thank you.

And we'll record this in the minutes. And let's now vote on the 11th item of the agenda, resolution on the authorization of the Management Board to acquire treasury shares without earmarking. I now put to the vote the proposed resolution I read out at the beginning and which has been made available online as a motion that the AGM should approve the authorization of the Board of Management to acquire treasury shares without a specific purpose and excluding trading and treasury shares as a purpose of the acquisition, as well as the authorization of the Board of Management to sell repurchased shares bought back by means other than at the Stock Exchange or by means of a public offer, together with the authorization of the Management Board with the approval of the Supervisory Board to exclude shareholders' general rights to offer and general purchase options and authorization of the Management Board with the approval of the Supervisory Board to cancel or withdraw treasury shares. Okay. I now ask you, who is against this motion? Please raise your voting cards. [Voting]

Knap, Oberhammer. Who wishes to abstain? [Voting]

Nauer, Adensamer, Oberhammer, Knap. I declare that this motion was adopted. But before that, let me briefly announce the voting result: votes in favor, 309,287,218; votes against, 5,009,602; number of shares for which valid votes have been cast or the overall number of valid votes cast, 314,296,820; portion of the share count represented was 73.13%; abstentions, 419,049. So I now declare that this motion was adopted by the requisite majority and that the AGM therefore resolved in accordance with the motion to authorize Management Board to repurchase the company's own shares or treasury shares for no specific purpose and excluding trading in the company's own shares as the purpose of the repurchase, as well as to authorize the Management Board to sell the repurchased shares by means other than at the Stock Exchange or by means of a public offer together with the authorization of the Management Board with the approval of the Supervisory Board to exclude the general right of shareholders to offer their shares and the general purchase option, and the authorization of the Management Board with the approval of the Supervisory Board to withdraw treasury shares. Mr. Knap?

Well, thank you for giving me the floor. On item 11 of the agenda, I wish to raise an objection on behalf of Staller Investments GmbH, and this is based on the voting card number 1858.

Thank you, and this will be recorded in the minutes accordingly. All right. Ladies and gentlemen, this concludes the agenda of today's AGM. Voting results will be published on the company's website. I'd like to thank you, ladies and gentlemen, dear shareholders, for following today's virtual AGM via the Internet. I now close the 28th Annual General Meeting. Goodbye. I hope you stay healthy. And if you are in Austria, you know that today, everything has opened up. So enjoy this day, whether you go to the opera or a concert or a restaurant. Wish you all the best. Stay healthy, and we'll see each other at the next AGM. Thank you. Goodbye. [Statements in English on this transcript were spoken by an interpreter present on the live call.]