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BCR Group
1
Banca Comercială Română S. A.
No. CFO Office 4 / 27.03.2026
Supervisory Board
Banca Comercială Română S. A.
Consolidated and Separate Administrators' Report
(The Group and the Parent Bank)
LEI Code: 549300ORLU6LN5YD8X90
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1.Macroeconomic developments | 4
2. General presentation | 5
3. 2025 financial and commercial highlights | 6
4. Outlook for BCR’s activity in 2026 | 9
4.1. 2026 expected macroeconomic development | 9
4.2. BCR Group’s strategy and business model | 9
4.3. Balance Sheet developments | 11
4.4. Statement of profit or loss developments | 11
4.5. Outlook for BCR subsidiaries | 11
5. Statements of financial position of the Group and of the BCR | 12
5.1. Statement of compliance | 12
5.2. Statements of financial position – assets | 12
5.3. Statements of financial position – liabilities and equity | 13
6. Statements of profit or loss of the Group and of the BCR | 14
7. Equity accounts and profit distribution | 14
7.1. Equity accounts as at 31 December 2025 | 14
7.2. Profit distribution | 15
7.3. Own funds elements | 15
8. Subsidiaries business performance overview and predictions | 16
8.1. BCR Leasing IFN SA | 16
8.2. BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA (“BCR Pensii”) | 16
8.3. BCR Banca pentru Locuinte SA | 16
8.4. Suport Colect SRL | 17
8.5. BCR Fleet Management SRL | 17
8.6. BCR Payments Services SRL | 17
9. The Bank’s and Group risk profile | 17
9.1. Overview | 17
9.2. Proportionality Principles | 18
9.3. Risk Profile | 18
9.4. Individual risk profiles for the key risk types | 18
9.4.1. Credit Risk | 18
9.4.2. Concentration risk | 19
9.4.3. Residual risk | 19
9.4.4. FX induced credit risk | 19
9.4.5. Market Risk | 19
9.4.6. Liquidity & Funding Risk | 20
9.4.7. Operational Risk | 21
9.4.8. Reputational Risk | 21
10. Risk management | 21
10.1. ICAAP framework | 21
10.1.1. Risk profile | 21
10.1.2. Risk appetite (RAS) | 22
10.1.3. Risk bearing capacity (RCC) | 22
10.1.4. Stress testing | 22
10.1.5. Risk Planning and Forecasting | 22
10.1.6. Recovery Plan and Resolution | 22
10.2. Monitoring of the Group Risk Profile | 23
10.2.1. Strategic oversight | 23
10.2.2. Operational oversight | 23
11. Statement regarding corporate governance | 23
11.1. Corporate governance framework | 23
11.2. General Ordinary and Extraordinary Meeting of Shareholders | 23
11.3. The Supervisory Board (SB) | 25
11.3.1. Audit Committee (AC) | 26
11.3.2. Risk and Compliance Committee (RCC) | 26
11.3.3. Remuneration Committee | 26
11.3.4. Nomination Committee | 26

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11.4. Management Board (MB) | 27
11.4.1. Asset and Liabilities Committee (ALCO) | 28
11.4.2. Credit Committee (CC) | 28
11.4.3. Risk Committee (RC) | 28
11.4.4. Data Analytics & AI Committee (DAAIC) | 28
11.4.5. Sustainability Diversity and Inclusion Committee (former Sustainability Committee) (SDIC) | 28
11.4.6. Capital Management Committee (CMC) | 29
11.4.7. Strategic Risk Committee (SRC) | 29
11.5. Organization of the internal control system’s function | 29
11.6. Corporate governance of BCR and the subsidiaries | 31
Consolidated Sustainability Statement | 32

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Administrators' report
1. Macroeconomic developments
Flash estimates for 4Q25 GDP delivered a negative outcome, with output contracting by –1.9% q/q and rising only +0.1% y/y. As a result,
full‑year GDP growth for 2025 came in at +0.6%, down from +0.9% in 2024. The release also included data revisions for the first three
quarters of 2025. The most significant adjustment was to 1Q25, which was revised down sharply, from +0.1% q/q to –0.6% q/q. Given that
both 3Q25 and 4Q25 now show quarterly contractions, Romania meets the definition of a technical recession.
December 2025 CPI came in at 9.7% y/y, decelerating slightly compared to 9.8% in the prior month. Core inflation accelerated slightly to
8.5% y/y in December from 8.4% y/y prior. The average annual inflation rate for 2025 stands at 7.3% compared to 5.6% in 2024.
The NBR left the monetary policy rate unchanged in 2025, at 6.50%. The 3M ROBOR ended the year at 6.1% vs. 5.9% in December 2024,
declining from 7.1% in the second quarter of 2025.
During January–November 2025, the current account of the balance of payments recorded a deficit of EUR 27,140 million, compared with
EUR 26,060 million in January–November 2024. The FDI coverage of the current account gap was 24.2% in November 2025 on a 12-
month rolling basis.
The cash budget deficit was 7.65% of GDP in 2025 compared to 8.67% in December 2024. Budget revenues advanced by 15.3% y/y, while
government expenditures increased at a slower pace by 11.2% y/y. The ratio between rigid public expenditures (public wages + social
payments+ interest payment) and cyclical revenues (fiscal revenues + social insurance contributions) was 88.3% in December 2025 same
as it was in December 2024.
The average unemployment rate in 2025 increased to 6.0% from 5.5% in 2024, reaching the highest level since the 2020 Covid pandemic.
The average net wage increased by +4.8% year‑on‑year in December, slightly accelerating from +4.2% in the previous month, reaching
RON 5,914. The average net wage in the public sector recorded an annual decline of -1.8% in December, down from -1.1% in November,
ending the year with a 2.8% increase, a strong deceleration from 18.0% in 2024. The average net wage in the private sector rose by +6.5%
in December, accelerating from +5.7% in the previous month, and registered an increase of 7.6% in 2025, slowing from 12.1% in 2024. In
real terms, the average net wage fell by 4.5% y/y in December. In 2025, the average net wage increased by 6.5%.
In January and March 2025, the rating agencies Standard & Poor’s and Moody’s revised Romania’s outlook from stable to negative while
affirming the rating at ‘BBB-’/’Baa3’. Both rating agencies attributed this decision to the large budget deficit and the prevailing political
uncertainty. Currently all three rating agencies place Romanian on the lowest investment grade rank with a negative outlook.
The EUR/RON exchange rate was volatile in the first half of 2025. In 2025, the EUR/RON rate recorded an average value of 5.0415 and
ended the year at 5.0985. The leu depreciated by 1.3% on average in nominal terms in 2025 vs. 2024. Large current account deficit poses
depreciation risks to the EUR/RON over the medium-term.
Important events since end-2025
The NBR kept the key policy rate unchanged at 6.50% at its two meetings in January and February 2026, in line with market
consensus. The credit facility rate was left at 7.50% and the deposit facility rate remained at 5.50%.
The rating agency Fitch decided to maintain Romania’s sovereign rating at BBB- with a negative outlook at its February meeting.
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2. General presentation
Banca Comercială Română (“BCR” or “Bank”) was established in 1990, when it took over the commercial operations of the National
Bank of Romania. As a result of the privatization process organized by the government of Romania, Erste Bank der oesterreichischen
Sparkassen AG (‘Erste Bank‘) purchased 61.88% of the share capital of the Bank pursuant to a share purchase agreement dated 21
December 2005. Until 31 December 2025, Erste Bank purchased further 38.0116% from other shareholders (including employees) of the
Bank, adding up to 99.8916%.
Erste Bank is the direct parent of the Bank. Erste Bank is owned 100% by Erste Group Bank AG. The ultimate parent of the Group is Erste
Group Bank AG.
The Group provides day-to-day banking services and other financial services to governmental institutions, corporate and individual
clients operating in Romania and abroad. These services include accounts opening, domestic and international payments, foreign
exchange transactions, working capital finance, medium and long term facilities, retail loans, finance micro and small enterprises, bank
guarantees, letters of credit and through subsidiaries also leasing, brokerage, financial consultancy services and asset management.
Products & Services
More than 1.9 million people benefited from a personalized financial plan through Financial Coaching, including over 900,000 in
2025 alone. This planning tool has been integrated into the George Benefits Programme, Romania’s first banking loyalty
programme, available to 1.8 million BCR clients. Structured across five benefit levels – Go, Advanced, Pro, Max, and Max Invest –
the programme encourages clients to diversify their financial portfolios and optimize their banking costs. To date, more than 1.4
million BCR clients have received discounts through the George Benefits Programme: around 50% in payments and cash
withdrawals, while 420,000 customers accessed loans and deposits at preferential interest rates. In addition, 61% of clients who set a
goal within the programme chose saving as their financial priority, also opening a saving account.
BCR is the first bank in Romania to introduce RoPay Alias, providing a fully digital banking experience for its clients. Users can
request or transfer money instantly using only a mobile phone number, without an IBAN, in a secure, efficient, and easy manner.
Over 22% of customers accessed a mortgage through a 100% digital journey in George, compared to 9% in 2024. December 2025
reached a record level, with 30% of customers choosing George to originate their mortgage. BCR is the first bank in Romania to
fully digitalize the most complex retail lending product, offering end-to-end digital journeys in George for both mortgage
origination and refinancing.
Over 2.1 million BCR products were opened through a fully digital process in 2025, marking a 16% increase compared to 2024.
BCR clients received over RON 37 million through George Moneyback, the loyalty programme that rewards users with cashback
for card payments. George Moneyback has now reached over 1.46 million users, up 7% compared to 2024.
BCR further strengthened its portfolio of strategic partnerships supporting the growth of its digital ecosystem, through
collaborations with leading brands in retail, e-commerce, mobility and services, such as eMAG, Kaufland, Bolt, OLX, Dedeman and
Vodafone, alongside OMV, Mega Image and Uber. In addition, the George Store offering was expanded through new partnerships
in travel, entertainment, mobility and shopping, including Animawings, Paralela 45, Dertour, Voxa, Uber and Freshful.
Approximately 170,000 companies are enrolled in George for Business, Romania’s unique digital ecosystem. In 2025, over 76% of
eligible clients opened their banking relationship through George, while more than 60% of loans to microenterprise clients were
originated through the available digital products: Digital Overdraft, George Smart Credit and the George Credit Card.
BCR expanded its portfolio of digital solutions for corporates, and as of December 2025 merchants can enroll in the RoPay system
directly via George, benefiting from payment settlement in up to 10 seconds, immediate funds availability, optimized processing
costs, simplified payment-to-delivery reconciliation, rapid implementation, and a high level of security and operational availability.
BCR serves as a financial partner for over 15,000 companies, including SMEs and large corporates, providing expertise and tailored
solutions to meet the needs of the real economy. The bank is one of the market leaders in syndicated lending, with a total
participation in 2025 of approximately RON 3.2 billion (EUR 630 million) in major expansion and technology-driven initiatives.
Branch and equipment network
BCR offers a full range of financial products and services through a network of 290 branches, out of which 73% cashless branches
and 81% featuring 24/7 self-service areas. BCR also operates 20 business centers and 18 mobile offices dedicated specifically to
companies. BCR customers have the largest national network of ATMs and multifunctional machines - almost 2,000 machines, and
full banking services through Internet banking, Mobile banking, Phone-banking and E-commerce.
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BCR’s financial inclusion programme for rural and small urban communities, through which BCR operates two mobile branches,
has so far covered a distance of 27,000 km and reached 52 communities, supporting over 7,500 people through financial education
sessions and personalized banking services.
Bank and subsidiaries
During 2025, Banca Comercială Română Group (“BCR Group” or “the Group”) comprised the parent Bank, Banca Comercială Română
S.A. and its subsidiaries, presented in the following table:

Company's name | Country of incorporation | Nature of the business | Shareholding | Gross Book Value | Net Book Value | Impairment
2025 | 2024
BCR Leasing IFN SA | Romania | Financial leasing | 99.97% | 99.97% | 389,491 | 389,491 | -
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA | Romania | Pension Fund | 99.99% | 99.99% | 229,484 | 198,125 | 31,359
BCR Banca pentru Locuinte SA | Romania | Banking | 99.99% | 99.99% | 948,578 | 335,800 | 612,778
Suport Colect SRL | Romania | Workout | 72.87% | 99.99% | 983,047 | - | 983,047
BCR Payments Services SRL | Romania | Payments transactions | 99.99% | 99.99% | 1,900 | 1,900 | -
BCR Fleet Management SRL (i) | Romania | Operational leasing | - | 99.97% | - | - | -
Total |  |  |  |  | 2,552,500 | 925,316 | 1,627,184

(i) During 2025, BCR Fleet Management SRL was merged in Suport Colect SRL, with BCR Fleet Management SRL being
deregistered.
Investments in other companies, except consolidated subsidiaries, associates and joint ventures are in total amount of RON 92,124
thousands (2024: RON 75,345 thousands) as presented in the statement of financial position as Equity Instruments and in the Note 20.
3. 2025 financial and commercial highlights
BCR's impact on economy and society
In the retail banking business, BCR generated new loans to individuals and micro businesses of RON 17.8 billion in 2025, higher by
14.3% year-on-year. The stock of unsecured consumer loans (including credit cards and overdrafts) increased by 15.5% yoy. At the
same time, the stock of mortgage loans increased by 10.4% yoy, of which the standard mortgage loans (Casa Mea) increased by
31.3% year-on-year, partially offset by repayments for Prima Casă loans.
In the corporate banking business, BCR approved new loans of RON 16.1 billion in 2025, of which about a quarter aimed for
investments. The stock of corporate loans increased by 6.8% year-on-year. Most of the financing was directed towards energy,
consumer goods, and public infrastructure, key sectors for Romania’s resilience and development. In 2025, BCR granted RON 6.5
billion for projects supporting the energy, agriculture, real estate, infrastructure, and construction sectors.
In 2025, BCR also approved more than 200 loans and other products totalling about RON 1.6 billion for prefinancing and co-
financing of EU and national-funded projects for corporates and microenterprises.
Additionally, BCR granted loans backed by guarantees issued by the European Investment Fund (EIF), the National Guarantee
Fund for SME (FNGCIMM), the European Investment Bank (EIB) and the Romanian Bank for Investment and Development
(BID), totalling about RON 1.1 billion in 2025.
In the fourth quarter 2025, BCR signed an SME portfolio guarantee agreement with the Romanian Bank for Investment and
Development. Based on this new instrument, BCR estimates to grant more than RON 1 billion financing in 2026, with a strong
focus on investment loans.
In 2025, BCR Leasing exceeded the EUR 1 billion threshold in its financed portfolio, marking a significant milestone for the
Romanian financial leasing market.
BCR Social Finance supported more than 2,170 microenterprises, including 1,030 in the agribusiness sector, by providing EUR 45.2
million in financing, which contributed to preserving over 4,150 jobs. In 2025, the institution financed 55 NGOs and social
enterprises with EUR 7.6 million, contributing to the wellbeing of more than 140,000 beneficiaries, maintaining 1,350 jobs, and
creating an additional 450 new positions. Additionally, BCR Social Finance granted 256 StudyUP loans, totaling over EUR 500,000,
to support lifelong learning through university, master’s, doctoral, and specialization programmes.
In 2025, Marc Impact Programme, a regional scaling programme implemented by BCR, BCR Social Finance and Synerb, completed
its first cohort and launched the second mentorship edition for impact-driven businesses. In Romania, 40 companies addressing
social or environmental challenges are involved in Marc, and as a result of the programme, HELP Autism has already secured over
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EUR 1 million in investment capital and launched Romania’s first social franchise, thereby facilitating access to more than EUR
100 million in government funding.
BCR invested EUR 5 million in ZBOR, a project developed in partnership with an extensive network of NGOs active in youth
development and social innovation. A year and a half after its launch, ZBOR ecosystem has reached over 70,000 young people
nationwide through 9 hubs located in Constanța, Iași, Cluj, Brașov, Ploiești, Târgu Jiu, Baia Mare, Vaslui and Timișoara.
Over the past 10 years, more than 1 million children, teenagers, young people and adults attended Money School trainings, with
100,000 participants in 2025 alone.
Customer Experience Index
As a profit-driven enterprise, BCR Group has a strong interest in its customers’ future behaviour and loyalty to the bank. The CXI is
an index that measures customer satisfaction and loyalty, considering satisfaction ratings, referrals, readiness to switch to another
bank, customer effort score and the repurchase rates. The CXI is calculated using the formula:
CXI = % Advocates + % Loyal + 0.5 x % Simply satisfied - % Non-engaged - % Dissatisfied.
The CXI is measured through quarterly and annual surveys conducted by an external market research institute, covering private,
micro, and SME segments. The results are used to set targets for the following year, aiming for significant yearly improvements.
The CXI is also used in bonus assessments for management and employees, with targets set by Group People & Culture, Group
Customer Experience, and relevant business lines. Due to the large amount of market research involved in calculating the CXI, a
limitation of this metric is standard deviation.
Through supporting financially excluded micro enterprises and start-ups, BCR Group fosters economic stability and enhances
customer satisfaction, whilst also maintaining its positive impacts on the topics “financial health and financial literacy“ and “access
to products and services“. The long-term target for BCR Group is to become the leader in CXI in the country. The target is relative
compared to the top 3 competitors in the market.
The target setting process and review is part of the yearly Strategy and Budget Dialogue with our shareholders.
CXI results
The table shows the relative difference to the Top 3 competitors in the market and the ranking of the bank in the respective market.

| PI | Micro | SME | Total
| 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025
Banca Comercială Română | -0.4 | 5.5 | 1.5 | 1.8 | 1.6 | 1.5 | 0.3 | 4.3

BCR had consistent improvements on both Private Individuals and Micro segments on customer satisfaction in the last years, as a
result of the continuous digitalization and new service models. BCR is now the CXI leader in the market, for privates and both
business segments.
1 All the financial data presented below constitute the unaudited consolidated results of Banca Comerciala Romana (BCR) Group
for 2025, according to IFRS. Unless otherwise specified, the 2025 financial results are compared to 2024 results. Also, unless
otherwise specified, the exchange rates used to convert amounts into euros are those communicated by the European Central Bank.
The profit and loss account are converted using the average exchange rate for 2025, i.e. 5.0419 RON/EUR when referring to the
2025 results, and using the average exchange rate for 2024, i.e. 4.9746 RON/EUR with reference to 2024 results. The balance sheets
as of 31 December 2025 and 31 December 2024 are converted using the closing exchange rates on those dates (5.0968 RON/EUR on
31 December 2025 and 4.9743 RON/EUR on 31 December 2024). All the percentage changes refer to the figures expressed in RON.
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BCR Group's financial performance in 2025 1
BCR delivered a solid financial performance, posting a net profit of RON 3,320 million (EUR 658 million) in 2025, up by 20.0%
against RON 2,767 million (EUR 556 million) in 2024, supported by continued expansion in customer business.
In September 2025, BCR Group recorded a one-off income amounting to RON 388.9 million as a result of the favourable High
Court ruling from 2024 becoming final and MDLPA Decision no. 201286/26.09.2024 (‘Amnesty Decision’) becoming final, thus
allowing for the reversal of the previously recognized liability. The favourable ruling referred to the legal action initiated by BCR
BpL subsidiary in 2022 for the cancellation of accessory budgetary obligations ((i.e. interest and penalties accrued to the principal
obligation for the period elapsed between date when the state premiums were cashed in and the date when BCR BpL reimbursed
the state premiums to MDLPA), based on the special provisions of Government Emergency Ordinance no. 69/2020 on several fiscal
measures, extension of certain deadlines, introduction of certain tax incentives and amendment of certain regulatory acts.
Operating result improved by 8.2% to RON 4,137 million (EUR 821 million) in 2025, compared to RON 3.825 million (EUR 769
million) in 2024, supported by higher operating income.
Net interest income rose by 7.8%, reaching RON 4,746 million (EUR 941 million) in 2025, up from RON 4,401 million (EUR 885
million) in 2024. The advance reflects higher business volumes and an optimized balance sheet structure.
Net fee and commission income increased by 7.6% to RON 1,214 million (EUR 241 million) in 2025, compared to RON 1,128
million (EUR 227 million) in 2024, driven by stronger transactional activity, lending growth and higher insurance-related fees.
Net trading & FV result increased by 7.4% to RON 555 million (EUR 110 million) in 2025, from RON 517 million (EUR 104 million)
in 2024.
As a result of these developments, operating income advanced by 7.2% reaching RON 6,533 million (EUR 1,296 million) in 2025,
compared to RON 6,096 million (EUR 1,225 million) in 2024.
General administrative expenses rose by 5.5%, reaching RON 2,395 million (EUR 475 million) in 2025 versus RON 2,271 million
(EUR 456 million) in 2024, driven by continued investments in strategic projects as well as the impact of inflation and increased
VAT. As such, the cost-income ratio improved to 36.7% in 2025, versus 37.3% in 2024.
Risk Costs and Asset Quality
The net result from the impairment of financial instruments amounted to RON 252 million (EUR 50 million) in 2025, compared
with RON 106 million (EUR 21 million) in 2024. This development reflects the growth in customer business volume as well as the
new NPL formation, partially compensated by provision releases from recoveries and debt sales.
The NPL ratio for BCR Group, calculated according to Erste Group methodology, stood at 2.7% as of December 2025, broadly in line
with 2.6% recorded in December 2024. The stable year-on-year evolution reflects the positive lending dynamics, solid portfolio
quality, and the efficient NPL management measures taken during the year. The NPL provisioning coverage stood at 132% as of
December 2025.
Capital position and funding
Total (Tier 1+2) capital ratio of BCR Group stood at 22.8% as of December 2025, well above the regulatory requirements of the
National Bank of Romania and clearly reflecting BCR’s strong capital and funding positions.
Net loans and advances to customers increased by 9.3% against 31 December 2024 to RON 72,956 million (EUR 14,314 million) as
of 31 December 2025, supported by the advance in both retail and corporate segments.
Deposits from customers increased by 2.3% against 31 December 2024 to RON 93,084 million (EUR 18,263 million) as of 31
December 2025, driven by the increase in retail deposits.
BCR has also set another landmark in capital markets financing in 2025, through the issuance of EUR 500 million in MREL-eligible
Eurobonds, at one of the most competitive margins ever achieved by a Romanian bank, and a RON 1.12 billion senior non-
preferred bond issuance, through which BCR secured the tightest spread for this instrument among Romanian banks, confirming
investors’ confidence.
9
4. Outlook for BCR’s activity in 2026
4.1. 2026 expected macroeconomic development
Economic growth is estimated at +2.1% in 2026, with investments being the key metric to watch this year.
Real wage growth is likely to remain negative at least until 2H26 which should affect household consumption.
The inflation rate could ease to 3.7% y/y in December 2026 from 9.7% y/y in December 2025, and the NBR could start cutting rates as early
as May dependent on inflation path.
The average unemployment rate is estimated to go marginally down to 5.7% in 2026, after 6.0% in 2025.
4.2. BCR Group’s strategy and business model
BCR has a balanced presence, financing customers from various economic sectors, as well as retail customers, reaching a portfolio of
more than 3 million customers, out of which BCR has over 1.3 million are digitally active users. BCR is continuously developing George
application by adding new features and products. As part of Erste Group, BCR has access to tools, software and other functionalities of
George application, developed at Group level and adapted to reflect local needs and local specific characteristics.
While implementing its long-term Financial Health architecture, which started in 2020, structured on five pillars: 1. Business architecture,
2. IT architecture, 3. Data architecture, 4. People architecture and 5. Brand architecture, BCR’s main objective on the medium term is to
focus on offering the best financial mentoring, tools, and products at the right time, in the right context, empowering people and
businesses to adopt healthy financial habits and to prosper.
The strategy design process takes place once every 3 years, this process being initiated upon receiving the Erste Group Strategy Guidelines.
An annual review is performed so that the strategy can be refined considering the most recent developments and the actual context. It
gathers and integrates key strategic inputs from diverse business units and functions across the bank, including: Macro-research (external
environment analysis), Marketing (Net Promoter Score and NPS data), Retail Business Divisions (value proposition, objectives, and
priorities for Private Individuals and Micro segments), Corporate Business Divisions (value proposition, objectives, and priorities for SME,
large corporates, and Public segments), Strategic Risk Management, IT and Change Divisions and Controlling.
After defining BCR’s medium-term 3-year strategy around 5 strategic bets (main pillars: Financial Health dialogues, Commercial time,
Bank on 1 app, Society and Education, People), given the strong convergence in content, in 2025 BCR fully transitioned to Erste Group’s 5
WINs Strategy for defining success:
This structured approach ensures a robust and well-aligned strategy development process, enabling BCR Group to effectively respond to
market dynamics and achieve its strategic objectives, whilst contributing to reaching the overarching objectives at Erste Group level. The 5
WINS are BCR’s guiding framework to steer the bank and every initiative is contributing to either Group or Local 5 WINs perimeter:
10
• Win 1 – Love Brand: BCR aims to build a love brand, to regain image leadership in Romania, to increase public affinity, and
build a strong presence in key image attributes. The strategy includes three dimensions: being iconic, being emotional and
nurturing the relationship with ZBOR ("flight") Youth Hubs. In addition to brand development, BCR also pursues strategies in
Digital Marketing and Financial / Entrepreneurial Education.
• Win 2 – Super Human, Super Digital: BCR's goal is to leverage technology and human-centric approaches to attract, activate
and engage customers and increase cross sell opportunities. A key element is the launch of the benefits program - GoMax - with
a tiered scheme and goal-based recommendations linked to financial health. Other initiatives include the Blueprint model, FIT
zone, Hey George. These efforts aim to focus on enhancing digital capabilities, providing personalized recommendations, and
improving client engagement through innovative digital solutions.
• Win 3 – Delivery Excellence: BCR aims to improve service delivery by increasing efficiency, optimizing time spent with clients,
and ensuring consistent service quality. This includes various automation projects designed to streamline processes and support
operational improvements.
• Win 4 - Next Level Financial Health Propositions: BCR aims to support clients' financial well-being by offering tailored financial
solutions and advisory services. The focus is on helping clients achieve long-term financial goals. Core focus is a modern IT
platform which enables automation and supports investment growth, alongside initiatives such as digital enrollment for private
pensions via George, and the sale of insurance and pension products.
• Win 5 – (In)organic Growth: BCR is constantly monitoring the market for targets, but in the absence of opportunities for M&A
transactions, BCR plans to expand its retail and corporate client base by implementing targeted commercial campaigns,
optimizing sales activities, and developing tactical programs.
BCR subsidiaries that are involved yearly on the extensive strategy exercise are: BCR Leasing IFN SA and BCR Pensii,
Societate de Administrare a Fondurilor de Pensii Private (“SAFPP”) S.A.
BCR Leasing IFN S.A. (“BCR Leasing”) is focused on improving operational efficiency by adjusting processes and workflows, while
continuing its strategy to increase sales volumes. BCR Leasing IFN S.A. will continue to develop its activity in a sustainable way based on
the essential pillars and in the current market context, pillars such as the improvement of processes to increase the degree of customer
s atisfaction, the acceleration of the digitalization process of the business model of the company, as well as identifying new opportunities
offered by the market.
The business model of BCR Leasing is to offer financial leasing and financial credit flexible, efficient solutions for the purchase of vehicles,
fleets, equipment, industrial machinery, agricultural machinery, medical equipment. The contracts are typically run for a period of
between 1-5 years, with transfer of ownership of the leased asset at the end of the contract term. The receivables are secured by the
underlying assets and by other collateral. BCR Leasing operates in an omnichannel business environment based on its direct sales and
strategic partnerships, while building a transformational digital channel, eBCR Leasing.ro a top edge solution for the Romanian market,
in order to address the needs of all types of customers (corporate and retail, public and private) in a vibrant economy.
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA (“BCR Pensii”) is a company that performs its activity
on the private pensions market in Romania, including mandatory (Pillar II) and voluntary private pensions (Pillar III). The strategy of the
subsidiary is to promote its two funds towards an increased number of eligible prospects and to promote the benefits of the supplementary
pension as a long-term saving product. Regarding the sales strategy for Pillar III, it is based on improving the quality of the portfolio by
ensuring quality sales through constant sales management actions and continuing the actions of reactivating the payments for suspended
contributions. BCR Pensii strategy continues in 2025 also, towards the increase in number of participants in the voluntary pension fund,
improving the quality of the products and services offered to them, as well as the loyalty of the participants through the permanent
improvement of the communication channels with them.
BCR Pensii business model is to enrol new participants to the voluntary pension fund (Pillar III) using mainly the standard sales channels
of BCR using a push sales strategy according to which sales agents target BCR corporate and retail customers.
For Pillar II (BCR FPAP), most of the participants are provided by the auto-enrolment process according to which 90% of the new
participants come from the random allocation provided by National Pension House.
The strategic objective of BCR Pensii is to achieve long-term capital growth for the participants, through investments in a diversified
portfolio of assets having different risk profiles, aiming to comply with the limits provided by law. These should allow the growth of the
participants' assets under prudent conditions.
11
4.3. Balance Sheet developments
It is estimated that loan production will remain the primary driver of asset growth, with an anticipated mid-single-digit increase
over the budget year. Both the retail and corporate portfolios are forecast to outperform the market next year.
Both Retail and Corporate loan portfolios are expected to expand slightly faster than the overall market. Compared to the initial
forecast, Retail loan volumes show stronger growth, reflecting the dynamic market conditions in 2025, while Corporate maintains
its previously set growth ambition.
We expect deposits from customers to continue growing steadily in 2026, with an estimated two-digit growth rate. This positive
trend is driven by robust performance in both the retail and corporate sectors.
Loan-to-deposit ratio (gross) at 74 per cent.
4.4. Statement of profit or loss developments
Operating income estimated to grow at a mid-single-digit rate, mainly on the back of net fee and commission income and net interest
income, in line with volume growth, while trading is expected to follow the market trends.
It is anticipated that general administrative expenses will undergo moderate growth, enabling strategy implementation, correlated with
FTE development, as a direct result of productivity and efficiency gains.
Cost of risk (cost of risk/ average loans to customers) is estimated at a normalized level of around 0.45 per cent.
Financial performance is expected to remain robust. A key indicator, return on equity, is projected to remain sound at up to 16% by 2026.
Capital & Minimum requirement for eligible liabilities ("MREL") ratios at comfortable levels driven by a diversified capital & MREL
instruments issued.
The current situation regarding Iran has no direct impact on the Group, as there is no operational presence in that country. Indirect
effects, such as financial market volatility or secondary impacts resulting from sanctions imposed on some of our clients, cannot be
excluded. Future geopolitical developments could lead to economic difficulties. Any resulting financial effects cannot be assessed at this
time.
4.5. Outlook for BCR subsidiaries
In 2026, BCR Leasing will continue its development on key pillars for a sustainable growth within current market context, such as
processes improvement with the purpose to increase the customers’ satisfaction, speeding up the digitalization of the company’ business
model and continue to invest in identifying new market opportunities.
The strategy of BCR Pensii is to promote its two funds towards an increased number of eligible prospects and to promote the benefits of
the supplementary pension as a long-term saving product. Regarding the sales strategy for Pillar III, this is based on expanding the
number of participants and on improving the quality of the portfolio. The quality of sales is planned to be ensured through constant sales
management actions, larger corporate sales and suspended contributions reactivation.
BCR Pensii continues in 2026 towards increasing number of participants in the voluntary pension fund, improving the quality of the
products and services offered to them, as well as the loyalty of the participants through the permanent improvement of the
communication channels with them. A key tool in this process will be service digitalization which will continue in 2026 both in the front
end and the back end.
12
5. Statements of financial position of the Group and of
the BCR
5.1. Statement of compliance
As of 31 December 2025, BCR prepared Consolidated and Separate Financial Statements in compliance with the Accounting Law no.
82/1991, with its subsequent amendments and supplements and with the National Bank of Romania Order no. 27/2010 for approval of
Accounting Regulations compliant with International Financial Reporting Standards applicable to credit institutions.
Order no. 27/2010 of the National Bank of Romania further specifies that the Consolidated and separate Financial Statements of credit
institutions must be prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European
Union.
Consequently, the Consolidated and Separate Financial Statements of BCR Group for the year ended 31 December 2025 were prepared in
accordance with IFRS, observing also the specific group accounting policies of Erste Group to which BCR Group belongs.
5.2. Statements of financial position – assets
Total assets of the Bank as at 31 December 2025 amounted to RON 132,220,902 thousand, increasing by 9.6% compared to 31
December 2024 (RON 120,676,695 thousand). At BCR Group level, the total assets increased by 9.2% from RON 120,804,935
thousand as at 31 December 2024 to RON 131,904,347 thousand as at 31 December 2025.

| Group |  | Bank |
in RON thousands | 31.12.2025 | 31.12.2024 | Variance | 31.12.2025 | 31.12.2024 | Variance
Assets |  |  |  |  |  |
Cash and cash equivalents | 11,440,918 | 10,642,241 | 7.5% | 11,435,554 | 10,596,154 | 7.9%
Financial assets held for trading | 3,329,764 | 1,912,779 | 74.1% | 3,329,764 | 1,912,779 | 74.1%
Derivative financial instruments held for trading | 102,599 | 187,806 | -45.4% | 102,599 | 187,806 | -45.4%
Debt securities held for trading | 3,227,165 | 1,724,973 | 87.1% | 3,227,165 | 1,724,973 | 87.1%
thereof pledged as collateral | 620,510 | 9,898 | >100% | 620,510 | 9,898 | >100%
Non-trading financial assets mandatorily at fair value through profit or loss | 97,614 | 87,862 | 11.1% | 97,614 | 87,862 | 11.1%
Equity instruments | 92,124 | 75,345 | 22.3% | 92,124 | 75,345 | 22.3%
Debt securities | 5,490 | 12,517 | -56.1% | 5,490 | 12,517 | -56.1%
Financial assets at fair value through other comprehensive income | 13,290,491 | 12,767,715 | 4.1% | 13,290,491 | 12,767,715 | 4.1%
Debt securities | 13,290,491 | 12,767,715 | 4.1% | 13,290,491 | 12,767,715 | 4.1%
Financial assets at amortized cost | 98,155,165 | 90,038,137 | 9.0% | 100,365,988 | 91,972,536 | 9.1%
Debt securities | 23,248,722 | 20,623,315 | 12.7% | 23,115,245 | 20,497,053 | 12.8%
Loans and advances to banks | 5,572,108 | 6,004,729 | -7.2% | 5,566,874 | 5,960,826 | -6.6%
Loans and advances to customers | 69,334,335 | 63,410,093 | 9.3% | 71,683,869 | 65,514,657 | 9.4%
Finance lease receivables | 2,678,181 | 2,321,385 | 15.4% | 30,375 | 15,043 | >100%
Property and equipment | 1,135,557 | 1,029,795 | 10.3% | 1,107,182 | 902,686 | 22.7%
Investment property | 15,343 | 112,198 | -86.3% | 15,342 | 112,198 | -86.3%
Intangible assets | 551,266 | 496,946 | 10.9% | 515,201 | 468,484 | 10.0%
Investments in joint ventures and associates | 34,599 | 38,838 | -10.9% | 25,961 | 25,961 | —%
Current tax assets | 1,068 | 139 | >100% | - | - | -
Deferred tax assets | 2,445 | 92,230 | -97.3% | 394 | 90,567 | -99.6%
Assets held for sale and disposal group | 15,204 | 729 | >100% | 15,204 | 729 | >100%
Trade and other receivables | 943,541 | 1,002,936 | -5.9% | 939,449 | 995,338 | -5.6%
Investments in subsidiaries | - | - | - | 925,316 | 613,371 | 50.9%
Other assets | 213,191 | 261,005 | -18.3% | 127,067 | 115,272 | 10.2%
Total assets | 131,904,347 | 120,804,935 | 9.2% | 132,220,902 | 120,676,695 | 9.6%

13
5.3. Statements of financial position – liabilities and equity

| Group |  | Bank |
in RON thousands | 31.12.2025 | 31.12.2024 | Variance | 31.12.2025 | 31.12.2024 | Variance
Liabilities and Equity |  |  |  |  |  |
Financial liabilities held for trading | 165,342 | 133,740 | 23.6% | 165,342 | 133,740 | 23.6%
Derivative financial instruments held for trading | 165,342 | 133,740 | 23.6% | 165,342 | 133,740 | 23.6%
Financial liabilities measured at amortized cost | 112,153,887 | 104,405,296 | 7.4% | 112,668,813 | 104,748,753 | 7.6%
Deposits from banks | 2,740,235 | 1,174,726 | >100% | 3,262,252 | 1,686,012 | 93.5%
Borrowings and financing lines | 439,197 | 533,268 | -17.6% | 108,463 | 127,307 | -14.8%
Deposits from customers | 93,084,106 | 91,007,840 | 2.3% | 93,460,301 | 91,281,395 | 2.4%
Debt securities issued | 14,246,361 | 10,407,030 | 36.9% | 14,246,361 | 10,407,030 | 36.9%
Other financial liabilities | 1,643,988 | 1,282,432 | 28.2% | 1,591,436 | 1,247,009 | 27.6%
Lease liabilities | 591,782 | 500,390 | 18.3% | 590,344 | 498,276 | 18.5%
Provisions | 490,048 | 788,313 | -37.8% | 477,507 | 768,162 | -37.8%
Current tax liabilities | 58,994 | 42,508 | 38.8% | 54,373 | 38,260 | 42.1%
Deferred tax liabilities | 22,130 | 25,177 | -12.1% | - | - | -
Other liabilities | 592,575 | 919,357 | -35.5% | 547,340 | 475,339 | 15.1%
Total liabilities | 114,074,758 | 106,814,781 | 6.8% | 114,503,719 | 106,662,530 | 7.4%
Total equity | 17,829,589 | 13,990,154 | 27.4% | 17,717,183 | 14,014,165 | 26.4%
Attributable to non-controlling interest | 83 | 64 | 29.7% | - | - | -
Attributable to owners of the parent | 17,829,506 | 13,990,090 | 27.4% | 17,717,183 | 14,014,165 | 26.4%
Total liabilities and equity | 131,904,347 | 120,804,935 | 9.2% | 132,220,902 | 120,676,695 | 9.6%

14
6. Statements of profit or loss of the Group and of the
BCR

| Group |  | Bank |
in RON thousands | 31.12.2025 | 31.12.2024 | Variance | 31.12.2025 | 31.12.2024 | Variance
Net interest income | 4,746,338 | 4,400,976 | 7.8% | 4,549,187 | 4,253,358 | 7.0%
Interest income | 6,914,594 | 6,692,846 | 3.3% | 6,905,858 | 6,720,942 | 2.8%
Other similar income | 518,841 | 242,463 | >100% | 357,939 | 77,352 | >100%
Interest expenses | -2,459,089 | -2,504,410 | -1.8% | -2,487,045 | -2,515,429 | -1.1%
Other similar expense | -228,008 | -29,923 | >100% | -227,565 | -29,507 | >100%
Net fee and commission income | 1,214,169 | 1,128,180 | 7.6% | 1,148,886 | 1,071,921 | 7.2%
Fee and commission income | 1,601,850 | 1,450,865 | 10.4% | 1,528,033 | 1,387,671 | 10.1%
Fee and commission expense | -387,681 | -322,685 | 20.1% | -379,147 | -315,750 | 20.1%
Dividend income | 6,581 | 6,192 | 6.3% | 10,124 | 74,078 | -86.3%
Net trading result | 544,422 | 487,915 | 11.6% | 544,422 | 487,871 | 11.6%
Gains/(losses) from non-trading financial instruments mandatorily measured at fair value through profit or loss | 19,736 | 24,723 | -20.2% | 19,736 | 24,723 | -20.2%
Foreign currency translation | -8,723 | 4,371 | <(100)% | -21,254 | -2,074 | >100%
Net result from equity method investments | -4,240 | 8,831 | <(100)% | - | - | -
Rental income from investment properties and other operating leases | 14,237 | 34,543 | -58.8% | 5,266 | 5,346 | -1.5%
Personnel expenses | -1,110,961 | -1,111,044 | -% | -1,042,600 | -1,047,484 | -0.5%
Other administrative expenses | -1,013,577 | -900,699 | 12.5% | -997,567 | -890,171 | 12.1%
Depreciation and amortisation | -270,946 | -259,105 | 4.6% | -258,129 | -241,797 | 6.8%
Operating Income | 6,532,520 | 6,095,731 | 7.2% | 6,256,367 | 5,915,223 | 5.8%
Operating Expense | -2,395,484 | -2,270,848 | 5.5% | -2,298,296 | -2,179,452 | 5.5%
Operating Result | 4,137,036 | 3,824,883 | 8.2% | 3,958,071 | 3,735,771 | 6.0%
Gains/(losses) from derecognition of financial assets measured at amortized cost | - | -26,881 | -100.0% | - | -26,881 | -100.0%
Other gains/(losses) from derecognition of financial instruments not measured at fair value through profit or loss | -1,307 | -4,127 | -68.3% | -1,307 | -4,127 | -68.3%
Net impairment gain/ (losses) on financial instruments | -252,408 | -106,342 | >100% | -215,199 | -66,482 | >100%
Other operating result | 60,533 | -400,038 | <(100)% | 54,159 | -354,175 | <(100)%
Other operating income | 702,611 | 84,752 | >100% | 612,161 | 50,890 | >100%
Other operating expense | -642,078 | -484,790 | 32.4% | -558,002 | -405,065 | 37.8%
Pre-tax result from continuing operations | 3,943,854 | 3,287,495 | 20.0% | 3,795,724 | 3,284,106 | 15.6%
Taxes on income | -623,763 | -520,072 | 19.9% | -612,089 | -502,354 | 21.8%
Net result for the year | 3,320,091 | 2,767,423 | 20.0% | 3,183,635 | 2,781,752 | 14.4%
Net result attributable to non-controlling interests | 20 | 8 | >100% | - | - | -
Net result attributable to owners of the parent | 3,320,071 | 2,767,415 | 20.0% | 3,183,635 | 2,781,752 | 14.4%

7. Equity accounts and profit distribution
7.1. Equity accounts as at 31 December 2025
The Bank's equity as at December 31 st 2025, amounts to RON 17,717,183 thousand and is detailed below:

| Bank
in RON thousands | 31.12.2025
Share capital 1 | 1,625,342
Adjustment of the capital – hyperinflation | 1,327,223
Share premium | 395,483
Additional equity instruments | 2,482,035
Other reserves | 1,404,346
Legal statutory reserves | 569,355
General reserve regarding credit risk set up from profit before tax | 162,935
Reserve on general banking risks | 267,673
Other reserves | 404,383
Other comprehensive income | 269,876
Retained earnings | 7,029,243
Net profit of the year | 3,183,635
Total amount of the Bank’s equity | 17,717,183

[1] The share capital represents the subscribed and paid-up share capital at nominal value, consisting of 16,253,416,254 ordinary shares
(equal voting rights) with each nominal value of RON 0.1 / share. The Bank and the Group do not hold redeemed own shares.
Erste Bank is the direct parent of the Bank and holds 99.8916% of share capital at 31 st December 2025.
15
7.2. Profit distribution
The net profit of the Bank for the financial year ended 31 December 2025, amounting to RON 3,183,635 thousand will be
distributed according to General Meeting of Shareholders’ decision and in compliance with the current legislation.
The proposal for the distribution of profit is in accordance with: art. 29 para. 1 of the Accounting Law no. 82/1991, republished as
subsequently amended and supplemented, para. 67 of the Law no. 31/1990, republished as subsequently amended and
supplemented and para. 27 of BCR Charter. The Supervisory Board proposes to the General Meeting of Shareholders the
distribution of 2025 net profit as follows:

Table A | Bank
in RON |
Other reserves[1] | 29,655,051
Dividend distribution and AT1 coupon payments, out of which:[2] | 1,777,049,850
- ordinary dividends | 1,591,817,460
- AT1 coupon[3] | 185,232,390
Retained earnings[4] | 1,376,930,019
Total | 3,183,634,920

Table B | Bank
in RON |
Transfer of reserves[5] | (420,951)
Retained earnings[5] | 420,951
Total impact in retained earnings[4]+[5] | 1,377,350,970

[1] The amount of RON 29,655,051 represents the reinvested accounting profit in 2025 of BCR which was exempt from applying corporate
income tax, in accordance with the provisions of the Fiscal Code in force and which should be allocated to „Other Reserves”.
[2] The amount of RON 1,777,049,850 represents the gross amount of ordinary dividends and coupons related to AT1 instruments issued
by BCR in September 2022 and in January 2025 recorded in other AT1 capital items.
[3] The AT1 coupon will be booked as payable in EUR on the date of approval of their distribution by the GMS and will be paid according
to contract on 28 May 2026. Its value, established according to the terms and conditions of the AT1 notes, is EUR 36,249,000. The RON
equivalent mentioned above has been calculated at the exchange rate estimated for payment date. Its final value will be lower or higher
depending on the evolution of the EUR - RON exchange rate up to the date of registration of the payment obligation in EUR. The FX
difference will have impact on the Retained earnings – item 4.
[4] The amount allocated to retained earnings from the net profit of 2025 totalling RON 1,376,930,019 will be used in accordance with the
Bank's business strategy.
[5] The amount of RON 420,951 represents transfer to retained earnings of amounts recognized in previous years as reserve for reinvested
profit for which conditions for tax credit are no longer fulfilled (assets disposed earlier than mandatory period in the fiscal law). These
amounts will be used in accordance with the Bank’s business strategy.
7.3. Own funds elements
Pursuant to Regulation 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for
credit institutions and investment firms and amending Regulation (EU) No. 648/2012, Chapter II "Basic Tier 1 Own Funds", Article
26, paragraph 1, the main own funds items other than share capital instruments are: retained earnings, other items of accumulated
comprehensive income, other reserves and funds for general banking risks. Eligible own funds items are included net of potential
obligations (foreseeable dividends, taxation effects). In case of reinvested accounting profit, the amount included in own funds will
be net of any potential tax charge at the moment of its calculation. The taxation effect will be maintained until the full amortization
(useful life expiry) of assets for which fiscal facility was calculated. These items are considered Own Funds Common Equity Tier 1
only if they are available to the Bank for unrestricted and immediate use in order to cover risks or losses as soon as they appear.
16
8. Subsidiaries business performance overview and
predictions
8.1. BCR Leasing IFN SA
BCR Leasing provides financial leasing products, such as leasing for cars, light and heavy commercial vehicles and industrial equipment.
In 2025, BCR Leasing focused on improving operational efficiency by adjusting processes and workflows, while continuing its strategy to
increase sales volumes. The total assets of BCR Leasing increased by 9% compared to the previous year, based on new sales volumes. The
share of non-performing exposures remained at a low single digit level, reflecting the efforts to improve the quality of the portfolio, as well
as the quality of new sales.
The operating result increased by 41% compared to the previous year, mainly due to the increase in net interest income by 35%. In 2025,
the cost/income ratio hovered around the level of 31.8%, reflecting the company's ability to support business growth in a challenging
macroeconomic environment and a highly competitive market. BCR Leasing registered a net profit in 2025 of RON 78.07 mn.
The sales volume continued to be stimulated by both sales channels, the Bank and the partnerships with dealers / partners.
Net assets as at 31 December 2025 were RON 312.79 mn.
8.2. BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA (“BCR
Pensii”)
BCR Pensii SAFPP is a company that performs its activity on the private pensions market in Romania, including mandatory (Pillar II) and
voluntary private pensions (Pillar III).
At the end of 2025, according to the statistics published on its website by the Financial Supervisory Authority, the mandatory private
pension Fund managed by BCR Pensii has a participant market share of 9.79%, managing the assets of 828,373 subscribers.
In terms of total number of subscribers for voluntary pensions funds, the voluntary private pensions Fund BCR Plus managed by BCR
Pensii SAFPP has a market share of 17.59% corresponding to a number of 175,808 participants, for the same date (31.12.2025).
Net profit in 2025 of BCR Pensii SAFPP was RON 22.47 mn under IFRS. Net assets as at 31 December 2025 were RON 190.72 mn.
8.3. BCR Banca pentru Locuinte SA
BCR Banca pentru Locuinte (“BCR BpL”) activity consists in the management of savings - lending products in the housing sector.
BCR BpL's total portfolio (savings-lending number of contracts) as of 31 December 2025 is 2,243 contracts (8,353 as at 31st of December
2024) and the volume of savings deposits amounted to RON 34,592 thousand as at 31 December 2025, compared to thousand RON 88,599
thousand as at 31 December 2024.
The activity of selling new savings-credit contracts (“ECDL contracts”) has been suspended in February 2016.
The financial result of 2025 is profit in amount of RON 393.64 mn under IFRS.
The completion of BCR BpL’s legal proceedings with the Ministry of Development is presented in the Financial Statements – Note 38
Litigations and contingent liabilities.
As of 31 December 2025, the management of BCR BpL assessed that the going concern assumption remains not appropriate, considering
all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period.
In accordance with IAS 1 “Presentation of financial statements”, paragraph 25, when preparing Financial Statements, management
should perform an assessment of an entity’s ability to continue as a going concern.
For further details, please refer to Consolidated and Separate Financial Statements, Note 40 – Subsidiaries.
Net asset of the company as of 31st December 2025 is RON 466.77 mn (2024: RON 73.13 mn).
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8.4. Suport Colect SRL
By end of 2025 Suport Colect SRL merged by absorption with BCR Fleet Management SRL, acting as absorbing entity. The Management
has evaluated the overall situation of the company and concluded that it is appropriate to maintain the same approach as in the previous
years and to prepare its financial statements for 2025 on a non-going concern basis.
The main arguments taken into consideration are as follows:
• the entity has no new business for some time and has no intention to acquire any, moreover no new business will be generated
following the merger, the only activity relates to receivables acquired in the past and monetising of the fixed assets stock (i.e., “cease
trading” condition in IAS 10.14 is fulfilled);
• there is an obvious intention of the management to liquidate the company in the future proved by the approved budgets which no
longer considered the company from 2027 onwards (IAS 1.25).
Net asset of the company as of 31st December 2025 is RON 68,048 thousands (2024: RON 42,482 thousands), according to IFRS.
8.5. BCR Fleet Management SRL
BCR Fleet Management was merged into Suport Colect at the end of the financial year 2025.
8.6. BCR Payments Services SRL
BCR Payments Services SRL is a subsidiary of the BCR Group, founded in 2011, following the outsourcing of payment processing services,
which had until then been performed by the same unit integrated within BCR, the Sibiu Processing Centre of the Banking Operations
Division. The company is responsible for centralized processing of payment operations in both local and foreign currency, debit
instruments and account administration.
BCR Payments Services SRL serves all local units of BCR, the Banking Services Division, as well as other BCR divisions, on the base of the
outsourcing contract signed between the two parties. During 2025, the company processed 1.6 mn transactions, and the company's net
profit as of 31 December 2025 amounted RON 0.6 mn under IFRS standalone. Net assets of the company as of 31st December 2025 is
RON 3.3 mn.
9. The Bank’s and Group risk profile
9.1. Overview
Risk management processes ensure that the bank’s risk profile remains in line with the risk strategy. The development of specific risk
profile (i.e. retail credit, corporate credit, operational risk, etc.) is reported through dedicated risk reports in a more granular way and
supports risk decision making of the dedicated risk functions. These reports also include specific monitoring metrics that provide an early
warning signal for adverse developments of portfolio quality (client, segment, countries and industries) or risk drivers. In instances where
certain risk portfolios or events are identified as potentially in distress, these are closely monitored by the dedicated risk functions to
manage the risk impact and to develop effective strategies to minimize potential losses. These processes facilitate early risk detection and
reaction.
The overall risk profile for the Group, as well as the individual risk profiles are implemented through the Group Risk Strategy and are
subject to an annual comprehensive review process. A quarterly assessment of the risk profiles checks if there are changes in respect of
the risk materiality or if new risks occurred in the Bank’s activity.
Given Group business strategy, the key risks for the Group are credit risk, market risk (including interest rate risk in the banking book),
liquidity and funding risk and operational risk. All material risks are covered by the Group’s control and risk management framework.
This entails a set of different tools and governance to ensure adequate oversight of the overall risk profile and sound execution of the risk
strategy, including appropriate monitoring and escalation of issues that could materially impact the risk profile of the Group.
Based on the Group Risk Strategy and the Group overall and individual risk profiles, the Group subsidiaries, including the Bank, set up
their local risk profile. Also, the Group’s capital management framework serves to ensure that the Group and its subsidiaries are
capitalized in line with the risk profile, regulatory requirements and economic capital requirements.
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As part of its risk strategy, the Group analyses its actual risk profile and determines a target risk profile based on its strategic goals. The
risk materiality analysis, which underpins the determination of the overall risk profile, is part of the risk strategy package. The materiality
analysis, based on the assessment of quantitative and qualitative risk drivers, leads to the determination of the current risk profile (for the
year ending) and a risk profile for the following year. For example now we have done the materiality analysis for YE 2025 and the risk
profile for 2026. The target risk profile is a result of the risk assessment process in combination with the boundaries set by the business
strategy and the risk appetite framework. In terms of governance, full oversight of the risk profile and a sound execution of the risk
strategy is ensured including appropriate monitoring and escalation of issues that could materially impact the risk profile of the Group.
9.2. Proportionality Principles
The proportionality principle is a crucial and integral part of the Group’s overall risk framework and strategy. The proportionality
principle is applied for the core components of the Group ICAAP framework (Risk Materiality Assessment/Risk taxonomy, Risk-bearing
Capacity Calculation, Risk Appetite & Risk Profile, Stress testing, Risk Concentration Analysis, and Recovery Plan).
The Group level risk management principles, concepts and processes are generally designed, developed and implemented to address over-
arching organizational needs across both group and local entities/subsidiaries reflecting a high degree of granularity and detail.
However, subsequent implementation and application at Group subsidiaries require an approach that takes differences in business
structures, size, complexity and relevance into account. This will ensure a meaningful, suitable and adequate application across the Group
in line with local needs and capabilities while still fulfilling overall Group level requirements and standards.
The evaluation of proportionality criteria is reviewed on an annual basis and included in the Risk Strategy. In addition, a reassessment
might be carried out outside the annual review cycle if changed business parameters indicate a need for a respective reclassification.
9.3. Risk Profile
Starting from the volume and nature of the Bank’s activity as part of the Group, the risk profile of the Group is driven by the Bank risk
profile. Thus, the Risk Profile for Group follows in general the same directions as the Bank, both with regard to overall risk profile and
individual risks profiles based on the following considerations:
• the volume and nature of the Bank activity as part of Group;
• the categorization of the Bank as a full subsidiary based on the Proportionality Principles.
9.4. Individual risk profiles for the key risk types
9.4.1. Credit Risk
Credit risk is defined as the current or prospective risk to earnings and capital arising from a borrower’s failure to meet the terms of any
contract with the credit institution or its failure to perform as agreed.
In respect of the credit risk profile, in order to lower the risk profile for this risk in 2025, the Bank has targeted the following strategic
directions:
_ any relaxing of the lending standards which can affect the Credit Risk profile of the Bank have to be benchmarked against the targeted
risk profile and operative limits, supporting metrics and in the end against the Risk Appetite Statement;
_ an integrated risk management framework where risk appetite is cascaded down to the highest granular level in terms of
concentration policy, lending acceptance criteria and business strategy;
_ the Group continued to refine, update, monitor and redevelop its statistically validated scorings, rating models, risk parameters and
tools;
_ the Group continued to manage the industry concentrations and to align the portfolio composition with the business strategy; perform
periodical stress tests/sensitivity analysis related to the impact of credit risk on the Bank and Group.
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9.4.2. Concentration risk
The Bank concentration risk framework outlines the standards needed to identify, measure, monitor, and mitigate concentration risks,
which implementation is essential to ensure the long-term viability of any financial institution, especially in the case of stressed economic
conditions.
In respect of concentration risk management, the Bank has implemented a wide framework of limits which are specific, measurable,
frequency-based, reportable, and based on forward looking assumptions in order to facilitate effective monitoring and reporting.
The limit framework includes material risk concentrations at the bank-wide, business line and legal entity levels (e.g. counterparty,
industry, region, product) aiming to ensure that the Bank operates within its defined Risk Appetite and they are effective in controlling
Risk Tolerance. Dimensions included in the limit framework comprise industry limits, geographic regions, corporate unsecured loans,
corporate and Retail product limits, FX retail limits, as well as concentration risk limits on individual counterparties depending on the
ratings (maximum/operational lending limits), market and liquidity risk limits and operational key risk indicators.
9.4.3. Residual risk
This is the risk that the recognized credit risk mitigation techniques (e.g., collateral) employed by the Bank will be less effective than
expected.
Collateral and credit enhancement are evaluated pursuant to internally defined rules. Depending on rating grade, purpose and tenor, risk
bearing products are protected against losses by stipulating adequate collateral that is fully and indisputably legally enforceable and
sufficiently documented for the Bank. Nevertheless, collateral and credit enhancement can never substitute repayment capability.
9.4.4. FX induced credit risk
FX induced credit risk is a risk associated with foreign currency lending to un-hedged borrowers, which arises due to exchange rate
fluctuations of the respective foreign currency.
Foreign currency loans are defined as loans that are at least partially receivable in other currencies than the legal tender of the country in
which the borrower is domiciled. Un-hedged borrowers mean borrowers without a natural or financial hedge which are exposed to a
currency mismatch between the loan currency and the hedge currency. Natural hedges include in particular cases where borrowers
receive income in foreign currency (e.g. remittances/export receipts), while financial hedges normally presume there is a contract with a
financial institution.
The Bank has in place limits for new retail FX loans (calculated as share of EUR denominated new loan volume in total new acquisitions),
in order to decrease the overall retail FX exposures and mitigate FX Induced Credit Risk. FX induced Credit Risk is also estimated
through capital requirement under Pillar 2 and monitored by the Bank on a quarterly basis.
9.4.5. Market Risk
Market risk is the risk to incur losses corresponding to on-balance and off-balance positions due to adverse market price movements (such
as, for example stock prices, interest rates, commodity prices and foreign exchange rates).
Key principles of the Group’s market risk management are based on the following pillars:
• identification of market risks – identification of market risks inherent in the investment operations and in new products, and
ensuring adequate procedures and controls before these are implemented or undertaken;
• position keeping and Market Data Maintenance – ensuring proper data representation of banking book and trading book
positions and also sourcing of appropriate market data for financial instruments and risk factors including data quality checks
and cleansing;
• pricing and valuation – maintenance of appropriate instrument pricing framework and valuation process for the calculation of
valuation adjustments;
• risk measurement – calculation of risk exposure using sensitivities, value-at-risk, and stress testing;
• validation - on one hand this concerns Value at Risk (“VaR”) back-testing while on the other hand parameters and models used
must be validated on a regular basis;
• market Conformity of Trading Activity - assuring that trading activities are performed at market conforming prices and rates;
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• market Risk Limits - development of a comprehensive limit system, limit allocation and breach reporting;
• market Risk Monitoring and Reporting – timely and accurate reporting of all relevant information.
9.4.6. Liquidity & Funding Risk
Liquidity Risk is the risk that the Bank is unable to meet its payment obligations when they come due or only being able to meet these obligations
at excessive cost.
The Group distinguishes between:
• funding liquidity risk (which is the risk that the banks in the group will not be able to meet efficiently both expected and
unexpected current and future cash flow and collateral needs without affecting either daily operations or the financial condition
of the group members);
• market liquidity risk (which is the risk that the group entities cannot offset or close a position at the market price because of
inadequate market depth or market disruption) and
• funding concentration risk (concentration risk arises when funding is sourced from too a small number of clients, or an
insufficiently diverse range of market instruments or sectors).
Furthermore, the funding liquidity risk is divided into structural liquidity risk (the long-term risk of losses due to a change in the Bank’s own
refinancing cost or spread) and insolvency risk (the short-term risk that current or future payment obligations cannot be met in full, on time
in an economically justified way).
The Group has an appropriate reporting framework for liquidity and funding risk management which includes the scope, possible
manifestations, and frequency of these risks, and which also designates the entity responsible for preparing the specific reports.
Additionally, BCR Bank and BCR BpL have implemented and deliver the regulator the Additional Liquidity Monitoring Metrics
(ALMM) reports, thus benefiting from a more comprehensive analysis of their financing sources.
The Bank has an adequate set of limits on the values of various liquidity risk indicators, which enable it to closely monitor and control liquidity
risk. These limits are also cascaded down to the major entities of the Group, which have also implemented the limits and set their own values,
based on prior approval from the Bank.
The Bank is also using the Survival Period Analysis (“SPA”) as a key tool for measuring liquidity risk; its aim is to assess whether
sufficient liquidity can be obtained in order to operate at a level where the Bank can survive for the length of all predefined liquidity crisis
scenarios. The analysis is performed per each significant currency (i.e. RON and EUR), and per total currencies.
Another important tool for Bank’s funding risk management process is the Contingency Funding Plan (CFP). It provides a useful
framework in the event the Bank is unable to fund some or all of its activities in a timely manner, and at a reasonable cost.
With respect to cash flow risks, the Bank is actively managing the intraday liquidity positions, so that it can be able to fulfil at any time the
requirements related to payments and settlements, in both normal and crisis conditions.
Thus, BCR has the capacity to:
• measure daily the gross inflows and outflows, to predict as accurately as possible the time of the day when these flows will
occur, and to predict any financing deficits that may occur during a day;
• monitor the intraday liquidity positions as compared to the expected activities and available resources (balances, capacity to
cover outstanding loans, available collaterals);
• obtain the necessary financing for meeting the intraday liquidity objectives;
• manage the eligible collaterals for obtaining the intraday financing;
• manage the liquidity outflows according to Banks’ intraday objectives;
• react quickly when facing unexpected changes in intraday liquidity flows.
The mechanisms used by the Bank in order to calculate the liquidity position are based on: prediction of cash-flows impacting the current
account during the day, estimation of the possible cash-flow shortages, ability to monitor the intraday liquidity position and the expected liquidity
requirements throughout the day.
Potential measures used by the Bank for managing liquidity in order to ensure the intraday availability of funds are: the possibility to access
intraday liquidity from NBR via its money market operations and /or facilities, banking book portfolio that can be used as collateral in order
to obtain secured funding (bilateral repos with banks), using the available liquidity facility, covering currency mismatch through swaps
(either with external counterparties, or with NBR).
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9.4.7. Operational Risk
The Group’s operational risk is governed by an operational risk management policy, which defines:
• the operational risk management structure, hierarchy and governance model (“three lines of defence model”);
• the risk appetite setting the limits of residual operational risk tolerance (OpRisk scaling matrix);
• common standards for managing and documenting operational risk within the Group;
• the framework that ensures OpRisk (OpRisk concentrations) are adequately identified, assessed, documented and managed.
The quantitative measurement methods are based on internal loss experience data, which are collected across Erste Group using a
standard methodology and entered into a central data pool. In addition to the quantitative methods, qualitative methods are also used to
determine operational risk, such as risk and control self-assessment, outsourcing risk assessments, scenario analysis etc. The Group also
reviews certain key indicators periodically to ensure early detection of changes in risk potential that may lead to losses.
To lower the operational risk profile, Bank has undertaken the following measures:
• permanent development and improvement of control environment;
• improvement of operational loss data collection;
• performing periodical stress tests/ sensitivity analysis related to the impact of operational risk on the Bank and Group.
The Bank and its subsidiaries have implemented a wide range of specific ratios for managing operational risk. The monitoring and regular
reporting of operational risk indicators (KRI) is enabling the Bank to detect any change in its exposure to operational risk in due time.
Also, the Bank is monitoring the evolution of recorded events, as well as through implementing/ solving corrective measures.
9.4.8. Reputational Risk
Reputational risk is defined as the current or prospective risk to earnings and capital arising from adverse perception of the image of the
credit institution on the part of customers, counterparties, shareholders, investors or supervisory authorities.
Reputational risk issues arise from transactions with clients or through different business activities. However, due to its nature, these
usually materialize through other risk types.
The primary responsibility for the identification, escalation and resolution of reputational risk issues resides with business and the
relevant risk type owner supports their resolution.
Reputational risk registered improvements based on continuing initiatives / projects, such as the financial education program,
strengthening corporate culture, using the risk return decision tool, product approval process.
10. Risk management
10.1. ICAAP framework
The Group has continued to strengthen its ICAAP comprehensive framework. This includes as its fundamental pillar the ICAAP
(Internal Capital Adequacy Assessment Process) required under Pillar 2 of the Basel framework.
The ICAAP framework is a holistic steering and management model designed to support the Group in managing its risk portfolios
and its risk bearing capacity by ensuring that the Bank has, at all times, an adequate coverage potential which ensures the
necessary capital adequacy to sustain its business and risk strategy.
A key component of ICAAP is the assessment of the group’s capital adequacy using economic capital measures. In the ICAAP, the
Group identifies and measures its risks and ensures that it has sufficient capital in relation to its risk profile. The process also
ensures that adequate risk management systems are used and further developed. The relevant components of the framework refer
to: risk profile & risk materiality assessment, risk appetite (RAS), risk bearing capacity (RCC), stress testing, limit framework, risk
concentration analysis, risk planning and forecasting, recovery and resolution plan.
10.1.1. Risk profile
The risk profile is defined by the Group as the assessment at a given point in time of gross and, where appropriate, net risk exposures
(after taking into account risk mitigants), aggregated within and between each relevant risk category, on the basis of current assumptions
or anticipatory.
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The Group Risk Profile is developed within the Risk Appetite and by evaluating the material risks to which the Bank is exposed. Group
ICAAP Report monitors the development of BCR Group Risk Profile compared with the Risk Appetite and Risk Strategy and it is
presented to the Management Board and Supervisory Board on a quarterly basis.
10.1.2. Risk appetite (RAS)
The Risk Appetite is defined as the aggregate level and types of risk that the Group is willing to assume within the limits of its risk
capacity, according to its business model, in order to achieve its strategic objectives.
RAS represents a strategic statement expressing the maximum level of risks the Group is prepared to accept in order to achieve its
business objectives. It consists of a set of core metrics providing quantitative direction for risk steering, as well as qualitative statements in
the form of key risk principles that form part of the strategic guidelines for managing risks.
10.1.3. Risk bearing capacity (RCC)
The risk-bearing capacity is defined as the maximum level of risk that the Group may assume, considering the applicable capital
requirements, its own risk management and control capabilities, and its regulatory constraints.
The Risk Bearing Capacity calculation defines the capital adequacy required by ICAAP. Within the RCC the Group’s risks measured from
an internal economic perspective are summed up to provide the basis to determine the Group’s Economic Capital. The Economic Capital
is then compared to internal capital, as measured by the coverage potential.
The integral forecast, risk appetite limits and the traffic light system support management in its discussions and decision process. The
traffic light system embedded in the Group’s RCC helps to alert the management in case there is need to decide on, plan and execute
actions either to replenish the capital base or to take measures for reducing risk.
10.1.4. Stress testing
Stress testing is a vital component of the Risk Management framework within the Group and is incorporated into the strategic planning
process for business activities, capital and liquidity assessment. The assessment of the ability of the Bank to sustain losses in severe but
plausible macroeconomic scenarios provides information on the adequacy of the overall business model and supports the planning of
emergency and mitigation measures.
Stress testing results and recommendations are incorporated into the process for defining the RAS, subsequent financial projections and
budgeting processes, as well as in the calculation of the risk-bearing capacity and the determination of the economic capital adequacy
limit.
10.1.5. Risk Planning and Forecasting
The Group has implemented a sound risk planning and forecasting process, which includes both forward- and backward-looking
component, focusing on both portfolio and economic environment changes.
Planning of risk relevant key numbers is also part of the Group ICAAP framework and it assures the adequate reflection of risks within
the steering and management process of the Group activity.
10.1.6. Recovery Plan and Resolution
The Bank Recovery Plan Governance represents a framework for the drawing up, update and implement the recovery plan as a main
pillar of strengthening the financial resilience of the Bank and restoring its financial position following a significant deterioration. It
identifies a set of recovery measures which could be taken in order to restore the Bank’s financial strength and viability when it comes
under severe stress.
The Recovery Plan also ensures that proper remediation measures are applied if the Bank starts moving outside of its approved risk
appetite in order to recalibrate its risk profile and ensure that it can recover on a sustainable basis.
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10.2. Monitoring of the Group Risk Profile
Oversight of the overall risk profile at the Group level consists of both strategic and operational oversight.
10.2.1. Strategic oversight
A major part of the strategic oversight plan is determining the Bank’s risk appetite. The Risk Appetite Statement (RAS) sets the boundary
for a maximum risk the BCR Group is willing to accept in order to pursue its business objectives; this includes a set of core steering
metrics with trigger levels providing strategic guidelines for risk management and planning.
The Risk strategy sets strategic risk targets based on the targeted risk profile of the BCR Group and the RAS and provides a balanced risk-
return view considering strategic focus & business plans.
Both are regularly monitored and reported in the Bank ICAAP Report including a traffic light overview together with respective measures
to address identified deviations from strategic plans or objectives.
10.2.2. Operational oversight
Operational oversight involves the identification, assessment, and prioritization of risks and the application of resources to minimize,
control and mitigate the impact of unfortunate events on business. Risk management by risk type ensures that the risk specific profile
remains in line with the risk strategy and operative limits support the achievement of strategic targets. The development of the specific
risk profile (i.e. retail credit, corporate credit, operational risk, etc.) is reported through dedicated risk reports in a more granular way and
supports risk decision making of the dedicated risk functions to ensure the risk profile remains within risk strategy. These reports also
include specific monitoring metrics that provide early warning signals for adverse developments of, e.g., portfolio quality (client, segment,
industries etc.) or risk drivers. In instances where certain risk portfolios or events are identified as potentially in distress, these are closely
monitored by the dedicated risk functions to manage the risk impact and to develop effective strategies to minimize potential losses. This
process facilitates early risk detection and reaction.
11. Statement regarding corporate governance
11.1. Corporate governance framework
The Bank managed in a two-tier system, carries out its activity based on a corporate governance framework which is in line with the legal
and regulatory requirements of the Romanian legislative framework, the Erste Group policies, regulations and guidelines, as well as the
best international practices in the industry.
The policy regarding corporate governance at Bank level, in compliance with the provisions of the regulatory framework issued by the
National Bank of Romania (“NBR”), is based on the principles stating that the overall management structure and especially the
supervisory function have the responsibility to establish, assess and periodically and systemically review: how the Bank’s activity is
organized, the collective and individual competencies and responsibilities, how the implementation and application of the entire set of
regulations is monitored, flows and control keys from the perspective of the undertaken mission and vision, targets’ achievement as per
the business plans, effective risk management.
The policy and the corporate governance principles on which the policy is based are applicable at the Group level, and Bank management
body is assuring that at the group level for Bank’s subsidiaries there is assured a proper corporate governance framework in order the
meet all applicable governance requirements.
Within this framework, the undertaken principles are based on the fact that BCR is part of Erste Group – one of the largest financial
services suppliers from Central and Eastern Europe and are aligned with the corporate governance principles applicable at Group level.
11.2. General Ordinary and Extraordinary Meeting of Shareholders
From Bank’s perspective, corporate governance covers all rules, systems and processes implemented with a view to establish the relation
between shareholders, management, clients, employees, suppliers and other parties involved in setting the objectives and the manner to
achieve them, for increasing economic performance and, implicitly, the Bank’s value. It also highlights the efficiency of the management
systems, namely the role of the Supervisory Board and of the Management Board, the responsibilities and remuneration of these
structures’ members, the fair view and accuracy of the Financial Statements and the efficiency of control functions.
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Details regarding BCR Corporate Governance Report may be found on the following link: https://www.bcr.ro/en/about-us/corporate-
governance/principles-policies.
The General Meeting of Shareholders (GMS) is the Bank’s highest management and decisional body.
The Ordinary GMS deliberates and decides on:
- discussing, approving, or changing the Annual Financial Statements, after analysing the reports of the: Supervisory Board,
Management Board and financial auditor, including the reports of Supervisory Board’s committees, and setting up the dividends, reserves
or other allotments;
- electing and revoking the Supervisory Board members;
- setting up an adequate remuneration for the Supervisory Board members for the current year;
- assessing the activity of Supervisory Board and Management Board’s members and discharging them of duty for the previous
financial year;
- approving the income and expense budget and, if applicable, the plan of activities for the next financial year;
- approving the pledge, lease or close down of the Bank’s units;
- approving the initiation of the legal proceedings against the members of Supervisory Board and the financial auditor and
nominating the person empowered to represent the Bank in such legal process;
- appointing and revoking the financial auditor and establishing the minimum duration of the contract concluded with them;
- other matters that are included on the agenda of the meeting and are attributed to the ordinary General Meeting of
Shareholders by law.
The Extraordinary GMS deliberates and decides on:
- change in the legal form of the Bank;
- reducing the share capital or its increase, except the case when the increase is decided by the Management Board;
- reconstituting the share capital in order to meet the minimum capital requirements established by law;
- reshaping the Bank main business activity as set forth in Article 9 of the Charter;
- the merger of the Bank with any other company or the Bank splitting up process;
- the liquidation and dissolution of the Bank;
- issuance of bonds;
- conversion of one category of bonds into another category or into shares;
- conversion of shares from one class to another;
- re-organizing, consolidating or provision documents regarding to fixed assets, when the value of transactions exceeds 25
(twenty-five) percent of the Bank own funds;
- contracts conclusion by the Management Board’s members regarding the acquisition, selling, lease, exchange or pledge of the
Bank assets if the value of such assets exceeds 50 % of the Bank's assets book value on the date of concluding such legal agreement, based
on the last available Annual Financial Statements;
- purchase by the Bank of its own shares, directly or indirectly, in accordance with the law;
- amending the Bank’s Charter;
- any public offering of shares issued by the Bank or admission thereof to trading on any regulated market/multilateral trading
facility;
- any acquisition or alienation by any member/members of the Management Board or of the Supervisory Board in his/her own
name of assets from or to the Bank, the value of which exceeds 10% of the net asset value of the Bank;
- other matters that are included on the agenda of the meeting and are assigned to the extraordinary General Meeting of
Shareholders by law.
All shareholders may attend the general meetings of shareholders : (i) in person, (ii) or by means of a representative or (iii) by
correspondence or other means of remote electronic communication that meet the technical requirements necessary to ensure the
identification of participants, their effective participation in the meeting and the continuous retransmission of the proceedings.
Shareholders can be represented at the General Meeting of Shareholders based on a special power of attorney lodged with the Bank by at
least 2 (two) working days before the relevant meeting.
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11.3. The Supervisory Board (SB)
The SB shall supervise the Management Board in its operational management of the Bank and monitors the compliance of the activities
performed by the Management Board pursuant to the Applicable Legislation, the Bank’s Charter and the General Meeting of
Shareholders decisions.
The Supervisory Board is composed of seven (7) members appointed by the ordinary GSM for a maximum four-year term, from among
the candidates nominated by the shareholders or by the SB in office, with the possibility of being re-elected for subsequent four-year
mandates.
The main responsibilities include:
- establishes, monitors and regularly assesses (at least yearly) the structure and effectiveness of the governance framework of the
Bank and its subsidiaries, including the policies related to it, reviewing (at least yearly) and considering various risks, both internal, as well
as external that the Bank and its subsidiaries are exposed to;
- approves and regularly reviews, (at least annually) the general business strategy, the risk strategy and the general risk
management policy at Bank’s level and at the level of its subsidiaries;
- approves and periodically reviews the internal audit statute and the internal audit plan, as well as the financial audit scope and
the frequency of audit engagements;
- approves and assesses (at least yearly) the policy regarding compliance risk and its implementation;
- approves the guidelines for staff policy and the organizational structure of the Bank down to the level of independent entities
inclusively and any changes thereof.
Sustainability-related expertise and skills of the Supervisory Board members
The roles are defined as follows:

| Main competencies | Specific competencies
Name | Banking and Financial sector | Industry | Consultancy | Directors /senior management | Accounting/ audit/ risk management | Compliance/ public sector | IT/ digitalization / innovation | Corporate acquisitions/ reorganisations/ capital markets | Sustainability*
Elisabeth Krainer Senger-Weiss | x | x | x |  | x | x | x | x | x
Christine Catasta | x | x | x | x | x | x |  | x | x
Manfred Wimmer | x |  | x | x | x | x |  | x | x
Stefan Dörfler | x |  |  | x | x | x | x | x | x
Iris Bujatti | x |  | x | x | x | x |  | x | x
Hildegard Gacek | x | x |  | x | x | x |  |  | x
Daniela Camelia Nemoianu | x | x | x | x | x | x |  | x | x

* All the members of the Supervisory Board attended the regulatory „Annual Training for Management Body” (November 17th,
2025), which also covered ESG regulatory updates.
During 2025, there have been no changes in the membership structure of the Supervisory Board.
As of 31.12.2025, the members of the Supervisory Board were the following:
- Manfred Wimmer – Chairman;
- Stefan Dörfler – Deputy Chairman;
- Daniela Camelia Nemoianu – member;
- Hildegard Gacek – member;
- Elisabeth Krainer Senger-Weiss – member;
- Iris Bujatti – member;
- Christine Catasta – member.
26
The Supervisory Board may establish committees as necessary and appropriate consisting of at least 3 members of the Supervisory Board,
the duties of which will include carrying out analysis and drawing up recommendations for the Supervisory Board in the following main
areas: audit, remuneration, nomination, risk and compliance.
At December 31st, 2025, the Supervisory Board was supported by the following consultative committees:
- Audit Committee;
- Risk and Compliance Committee;
- Remuneration Committee;
- Nomination Committee.
11.3.1. Audit Committee (AC)
The Audit Committee is a consultancy body, which reviews, reports to, advises and assists the Supervisory Board in carrying out its tasks
related to internal control and audit, as well as on the quality and performance of Bank’s internal accountants and auditors, the reliability
of the Bank’s financial information, and the adequacy of the Bank's financial controls and policies.
The Audit Committee is made of 3 members and one additional replacement member elected out of the Supervisory Board members.
Members of the Audit Committee must have basic accounting and financial knowledge and at least one member of the Audit Committee
shall have accounting or financial management professional background. The responsibilities, organization, the operation and the
procedures of the Audit Committee are established by the Audit Committee Internal Rules.
11.3.2. Risk and Compliance Committee (RCC)
The Risk and Compliance Committee is a consultancy body which reviews, reports to, advises and assists the Supervisory Board in
carrying out tasks related to risk management (strategic risk, legal risks and business continuity and security management), internal
control, compliance and ESG and issues recommendations within its authority limits. In addition, there are several audit matters,
including the Financial Statements, which, as always, are received and reviewed by this Committee in accordance with the provisions of
its Internal Rules.
The Risk and Compliance Committee is made of 3 members and one additional replacement member elected out of the Supervisory
Board members. The responsibilities, organization, the operation and the procedures of the Risk and Compliance Committee are
established in accordance with the Risk and Compliance Committee Internal Rules.
11.3.3. Remuneration Committee
The Remuneration Committee is a consultancy body which reviews, reports to, advises and assists the Supervisory Board in carrying out
its powers and responsibilities with respect to the overall remuneration policy, and in particular advises and monitors the remuneration,
bonuses and benefits of the members of the Management Board and of the identified staff.
The Remuneration Committee is made of 3 members and one additional replacement member elected out of the Supervisory Board
members.
The responsibilities, the organization, the operation and the procedures of the Remuneration Committee are established in accordance
with the Remuneration Committee Internal Rules.
11.3.4. Nomination Committee
The Nomination Committee is a consultancy body, which reviews, reports to, advises and assists the Supervisory Board in carrying out its
tasks related to the nomination and assessment of suitability of the members of the Supervisory Board, the Management Board and of key
function holders respectively as well as to the Bank's corporate governance framework.
The Nomination Committee is made of 3 members and one additional replacement member elected out of the Supervisory Board
members.
The responsibilities, the organization, the operation and the procedures of the Nomination Committee are established in accordance with
the Nomination Committee Internal Rules.
27
11.4. Management Board (MB)
The Management Board ensures the operational management of the Bank and the effective management of the compliance risk.
The Management Board members are authorized to manage the Bank on a daily basis, and they have authority and power to legally
represent and bind the Bank, according to the Bank Charter.
The Management Board has five (5) members appointed by the Supervisory Board, for mandates of maximum four-year period
each, one of them being appointed as President of the Management Board. The remuneration of Management Board members is
decided by the Supervisory Board.
The President and the other members of the Management Board have competences and assignments established by law and by the
Management Board’s Internal Rules. Main responsibilities:
• managing the implementation of Bank’s financial targets, strategy and business plan;
• systematically and regularly approving and revising the strategies and policies regarding the risk management;
• approving the strategies and policies related to the internal capital and own funds (covering and proportional to the nature,
extension and complexity of the activity conducted by the Bank);
• periodically monitoring and assessing the efficiency of the Bank’s activity management framework and practices, mainly the
management policies regarding the management framework, and reviewing the management framework in order to reflect any
changes in the internal and external factors affecting the Bank;
• approving the explicit plan regarding the capital;
• approving and assessing the Bank risk appetite;
• approving the level of interest, commission, fees, costs and other similar bank charges collected and paid by the Bank in line
with the budget approved by the General Meeting of Shareholders;
• approving the internal rules of the committees established by the Management Board.
Sustainability-related expertise and skills of the management board members

| Main competencies | Specific competencies
Name | Banking and Financial sector | Industry | Consultancy | Directors /senior management | Accounting/ audit/ risk management | Compliance / public sector | IT/ digitalizati on / innovation | Corporate acquisitions/ reorganisations/ capital markets | Sustainability *
Sergiu Cristian Manea | x | x |  |  | x | x | x | x | x
Elke Meier | x | x |  |  | x | x | x | x | x
Dana Luciana Dima | x | x |  | x | x | x | x | x | x
Thomas Kolarik | x | x |  |  | x | x | x | x | x
Ioana Anca Gheorghiade | x | x |  | x | x | x | x |  |

* All the members of the Management Board attended the „Annual Training for Management Body” (November 17th, 2025), which
also covered ESG regulatory updates.
The Members of the Management Board as of 31.12.2025 were as follows:
1.Sergiu Cristian Manea – Executive President, Chairman of the Management Board - mandate valid until 28.02.2030;
2.Elke Meier – Executive Vice-President coordinating the Financial functional line, Member of the Management Board - mandate
valid until 31.12.2027;
3.Dana Luciana Dima - Executive Vice-President coordinating the Retail & Private Banking functional line, Member of the
Management Board - mandate valid until 31.10.2029;
4.Thomas Kolarik - Executive Vice-President coordinating the Operations & IT functional line, Member of the Management Board
–mandate valid until 31.12.2027;
5. Ioana Anca Gheorghiade - Executive Vice-President coordinating the Risk functional line, Member of the Management Board -
mandate valid until 31.10.2027.
28
Management Board members meet the general conditions provided by the law and the special conditions of the Banking Law,
National Bank’s regulations, and Recruitment and Remuneration Policy of BCR Group management.
Professional experience details of Management Board may be found on the following link: https://www.bcr.ro/en/about-us/bcr-
management.
The Management Board may set up committees as it deems necessary and appropriate. Such committee’s competencies and
authority will be stipulated by the Management Board and responsibilities will be defined by each committee’s internal rules.
As at 31.12.2025, the Management Board’s Committees are:
11.4.1. Asset and Liabilities Committee (ALCO)
ALCO reviews, reports to, and assists the Management Board in carrying out responsibilities regarding asset and liabilities structure
management, financing strategy, interest rate policy, liquidity policy, pricing for savings products/ lending products/ cards/ introducing/
suspension or the removal of the products and services. The committee is a body for analysis and decision that issues decisions and
recommendations according to the established authority limits.
The ALCO consists of all the Management Board members and the CFO is Chairwoman whilst the CEO is Deputy Chair of this
Committee.
The responsibilities, organization, working means and procedures of ALCO are established in accordance with the Internal Rules of the
Committees subordinated to the Management Board.
11.4.2. Credit Committee (CC)
The Credit Committee reviews, reports to, and assists the Management Board in carrying its responsibilities regarding loans granting,
changing of terms and conditions for granting, using and/or securing some previously granted loans, concluding agreements, extending
their validity periods, issuing letters of guarantee, factoring and other activities, for retail, corporate and workout customers.
The Credit Committee is made of 3 members, namely CRO - Chair, CFO – Deputy Chair and CEO/Retail & Private Banking VP –
member.
The responsibilities, organization, working means and procedures of Credit Committee are established by the Internal Rules of the
Committees subordinated to the Management Board.
11.4.3. Risk Committee (RC)
Risk Committee is subordinated to the Management Board and is responsible for approval and reviewing the aspects regarding the
operational risk administration.
The Risk Committee is made of 3 members of Management Board Members, respective CRO – Chair, CEO – Deputy Chair and COO -
member. The responsibilities, organization, working means and procedures of Risk Committee are established by the Internal Rules of
the Committees subordinated to the Management Board.
11.4.4. Data Analytics & AI Committee (DAAIC)
Data Analytics & AI Committee is subordinated to the Management Board and ensures the management of all aspects related to data in
BCR, regulatory requirements related to data management and data initiatives and priorities in the Data Analytics & AI Operational
Decision Body, takes strategic decisions on related topics. The Committee comprises 5 members, namely the CFO – Chairwoman, COO –
Deputy Chair, CRO, VP Retail & Private Banking and B-1 Data Analytics & AI Division - members. The responsibilities, organization,
working means and procedures of Data Analytics & AI Committee are established by the Internal Rules of the Committees subordinated
to the Management Board.
11.4.5. Sustainability Diversity and Inclusion Committee (former Sustainability
Committee) (SDIC)
Sustainability Committee was renamed in 2025 into Sustainability Diversity and Inclusion Committee subordinated to the Management
Board and ensuring in-depth discussions and review of all sustainability, diversity and inclusion related topics.
2 This Committee was set up as at 31.12.2025 and did not have any activity in 2025
29
The Committee comprises 7 (seven) members, out of which 5 (five) are all the members of the Management Board. The CRO is the SDIC
Chair, and the CFO is the SDIC Deputy Chair. The rest of the members are the following: CEO, VP Retail & Private Banking, COO, Head
of Sustainability Department, Diversity Manager from People and Culture Division. The responsibilities, organization, working means
and procedures of the Sustainability, Diversity and Inclusion Committee are established by the Internal Rules of the Committees
subordinated to the Management Board.
11.4.6. Capital Management Committee (CMC)
Is subordinated to the Management Board and is an analysis, consultative and decision-making body for all joint alignments,
endorsements, decisions as well as confirmations related to capital management relevant topics in BCR Group across all its Divisions,
Departments, Staff Units and Subsidiaries.
The new set-up Committee consists of 5 members, namely the CFO – Chairwoman, CRO – Deputy Chair, the Executive Managers of
Controlling Division, Strategic Risk Management Division and Balance Sheet Management Division as members. The responsibilities,
organization, working means and procedures of Capital Management Committee are established by the Internal Rules of the Committees
subordinated to the Management Board.
11.4.7. Strategic Risk Committee (SRC) 2
Starting with 31.12.2025, a new Committee of the Management Board was set up, namely the Strategic Risk Committee (SRC) which is an
analysis, consultative body and decision-making body, subordinated to the MB, exercising responsibilities delegated by the Management
Board regarding all technical aspects related to the risk management frameworks, methodologies, and technical documentation to ensure
BCR’s compliance with prudential requirements. The structure of the Committee consists of 9 members with the CRO as Chairwoman
and the rest of the members being Executive Managers from risk, compliance, controlling, accounting and security management areas.
11.5. Organization of the internal control system’s function
Internal Control System Framework Requirements
The internal control system (ICS) is an essential element of the corporate governance system of BCR Group contributing to the
safeguarding of shareholders’ investments and company’s assets. BCR Group’s ICS plays a key role in identifying risks associated with the
respective internal processes.
The BCR Internal Control Policy provides the framework conditions for the internal control system at BCR Group. It defines current
standards concerning general tasks and responsibilities as well as minimum criteria for ICS documentation.
Ensuring an internal control in Romanian Commercial Bank (BCR) involves:
a) the existence of a sound internal control framework in place, which covers the whole credit institution (including the outsourced
activities), including the activities of all business, support and control functions, ensured by:
• definition of the role and responsibilities of the management body concerning the internal control;
• identification, assessment and monitoring of significant risks;
• control activities definition, segregation of duties assurance and conflict of interest avoidance;
• assurance of a transparent framework for information and communication;
• continuous monitoring of the activities and correcting the deficiencies.
b) the existence in place of independent control functions, established at an adequate hierarchical level with direct line of reporting to the
management body.
Everyone in the organization has responsibility for internal control to a certain extent.
Control environment
The Code of Conduct provides orientation for all employees of BCR Group, defines mandatory rules for day-to-day business life, describes
the corporate values, affirms the obligation to act responsibly as a company and ensures compliance with legal provisions and internal
guidelines (compliance).
30
The awareness of potential compliance issues and a sustainable risk culture enable risks to be identified quickly and well-considered
decision-making when dealing with existing regulations.
The main component of the risk culture is internal guidelines and, above all, open communication in order to create the broadest possible
awareness of all employees for all risks that BCR Group is confronted with. The management board is responsible for the establishment,
structure and application of an appropriate internal control and risk management system that meets the company’s needs in its group
accounting procedures.
BCR’s IFRS Accounting Manual provides a comprehensive methodological basis for the preparation and submission of the monthly,
quarterly and annual IFRS Group Reporting Packages by BCR Group’s subsidiaries. The management in each subsidiary is responsible
for implementing group-wide instructions. Compliance with group rules is monitored as part of the audits performed by group and local
auditors.
Accounting Division is responsible for preparing the consolidated financial reporting. Accounting Division is assigned to the CFO and
Accounting Director of BCR Bank. The assignment of competencies, the process description and the necessary control procedures are
defined in the working instructions.
Risk assessment and controls measures
The main risk in the financial reporting procedures is that errors or deliberate action (fraud) prevent facts from adequately reflecting the
company’s financial position and performance. This is the case if the data provided in the Financial Statements and notes is materially
deviating from the correct figures, i.e. whenever, alone or in aggregate, they could influence the decisions made by the users of Financial
Statements. Such a decision may incur serious damage, such as financial loss, the imposition of sanctions by the banking supervisor or
reputational harm.
Furthermore, especially estimates for the determination of the fair value of financial instruments for which no reliable market value is
available, estimates for the accounting of risk provisions for loans and advances and for provisions, complex measurement requirements
for accounting as well as a volatile business environment bear the risk of significant financial reporting errors.
The basic components of the internal control system within BCR Group are:
- systemic, automatic control systems and measures in the formal procedure and structure, e.g. programmed controls during data
processing;
- principles of functional separation and checks performed by a second person (the four-eye principle);
- controlling as a permanent financial/business analysis (e.g. comparison of target and actual data between accounting and controlling)
and control of the company and/or individual corporate divisions;
- highly automated data validation in the group consolidation process.
The areas of responsibility assigned to the individual positions are documented and are continuously updated. Special attention is paid to
a functioning deputy regulation in order not to jeopardize the ability to meet deadlines if one person is absent.
BCR issues group policies used for preparation of Consolidated Financial Statements in accordance with IFRS.
A summary description of the accounting process is provided in BCR’s IFRS Accounting Manual. Preparation of the Financial Statements
of the subsidiaries for consolidation purposes is in accordance with the accounting and measurement methods set out in this manual.
Monitoring
In order to monitor and at the same time support strong governance and risk management, BCR Group applies three lines of defense to
review the structures and processes that enable the achievement of the objectives for their effectiveness.
First control line – business lines / The first control line has the responsibility of managing risks that could affect the activity of BCR and
its financial performance, as well as its reputation and is translated in the following actions performed as part of the internal control
system. The business line management (functional entities/ branches/ business centers, excluding entities that are part of the risk
management function, compliance and internal audit function) has the main responsibility to ensure an adequate internal control
framework by identifying, evaluating and mitigating risks, providing support for the policies and regulations development and
implementation, thus ensuring the business in line with the bank’s objectives.
Second control line - Risk Management function and Compliance function
Second line of defense functions have the main responsibility to set the rules regarding overall risk management:
• identify the inherent and residual risks and the relating regulatory requirements and state them in the relevant policies and procedures;
• define key controls from ICS perspective and assign the control to the risk intended to be mitigated;
• allocate responsibilities necessary to implement the key controls as they are designed in the policies;
• monitor and assess the control effectiveness to improve the design of the controls and/or to introduce new controls;
• assist the business lines by setting up definition and allocation of necessary internal controls and/or other risk mitigation measures.
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Internal audit function (represented by Internal Audit Division) is an independent function, which corresponds to the third level of the
internal control framework and provides an objective assurance, designed to add value and improve the Bank’s operations. Internal Audit
helps the organization to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the
effectiveness and efficiency of risk management, control, and governance processes.
Internal Audit conducts periodical reviews of the internal control system (both from the first and second control line), distinctly from the
daily monitoring performed by management. The internal audit process covers all activities of the Bank, including those of the
subsidiaries within the BCR Group. Internal Audit also evaluates the internal control system of all outsourced activities.
The activity of the Internal Audit is regulated through BCR Group Internal Audit Policy, whose objective is to provide a framework and
regulate the activities of BCR Internal Audit Division in cooperation with internal audit functions of the legal entities included in BCR
Group consolidation area.
Group consolidation
The Individual Financial Statements reported by the subsidiaries in the consolidation system are checked by the persons responsible for
the Individual Financial Statements in Accounting Division as part of the data release process, which provides for extensive, largely
automated check routines, and - if necessary - adjustments to the Individual Financial Statements are made in coordination with the
individual entities or the auditors.
The subsequent consolidation steps are then performed using the consolidation system. These include consolidation of capital, expense
and income consolidation, and debt consolidation, any intragroup gains/losses are eliminated. At the end of the consolidation process, the
notes to the Consolidated Financial Statements are prepared in accordance with IFRS. The Consolidated Financial Statements and the
Administrator’s report are pre-approved by the management board and the supervisory board and approved by the general shareholders
meeting. They are audited and published on BCR’s website.
11.6. Corporate governance of BCR and the subsidiaries
The following table presents the woman to man ratio of the Corporate governance of BCR and the subsidiaries as at 31 December 2025:

Entity | MB/Directorate woman to man ratio | SB/BoD woman to man ratio
BCR Bank | 3:2 | 5:2
BCR Banca pentru Locuinte | 1:2 | 1:2
BCR Leasing IFN SA | 1:2 | 1:2
BCR Payments Services SRL | 1:0 | 1:1
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA | 1:2 | 2:1
Suport Colect SRL | 1:1 | 1:1

32
Consolidated Sustainability
Statement
Table of contents

Consolidated Sustainability Statement | 32
Table of contents | 32
12.1 General information | 34
12.1.1 Basis for preparation | 34
BP-1 – General basis for preparation of the consolidated sustainability statement | 34
BP-2 – DISCLOSURES IN RELATION TO SPECIFIC CIRCUMSTANCES | 34
12.1.2 Governance | 37
GOV-1 – THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES | 37
GOV-2 –INFORMATION PROVIDED TO AND SUSTAINABILITY MATTERS ADDRESSED BY THE UNDERTAKING’S ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES | 39
GOV-3 – INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE SCHEMES | 41
GOV-4 – STATEMENT ON DUE DILIGENCE | 42
GOV-5 – RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY STATEMENT REPORTING | 43
12.1.3 Strategy | 45
SBM-1 – STRATEGY, BUSINESS MODEL AND VALUE CHAIN | 45
SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS | 47
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL | 49
12.1.4 Impact, risk and opportunity management | 52
IRO-1 – DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES | 52
IRO-2 – DISCLOSURE REQUIREMENTS IN ESRS COVERED BY THE UNDERTAKING’S CONSOLIDATED SUSTAINABILITY STATEMENT | 58
12.2 Environmental information | 64
12.2.1 EU Taxonomy Disclosures | 64
12.2.2 Climate change | 94
E1 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL | 94
E1-1 - Transition plan | 98
E1-2 – POLICIES AND TRANSITION MEASURES FOR CLIMATE CHANGE MITIGATION AND ADAPTATION | 99
E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES | 104
E1-4 – TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTatION | 108
E1-5 – ENERGY CONSUMPTION AND MIX | 115
E1-6 – GROSS SCOPES 1, 2, 3 AND TOTAL GHG EMISSIONS | 116
12.2.3 Biodiversity and ecosystems | 126
E4 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL | 126
E4-1 – TRANSITION PLAN AND CONSIDERATION OF BIODIVERSITY AND ECOSYSTEMS IN STRATEGY AND BUSINESS MODEL | 126
E4-2 – POLICIES RELATED TO BIODIVERSITY AND ECOSYSTEMS | 127
E4-3 – ACTIONS AND RESOURCES RELATED TO BIODIVERSITY AND ECOSYSTEMS | 128
E4-4 – TARGETS RELATED TO BIODIVERSITY AND ECOSYSTEMS | 128
E4-5 – IMPACT METRICS RELATED TO BIODIVERSITY AND ECOSYSTEMS CHANGE | 128
12.3 Social information | 128
12.3.1 Own workforce | 128
S1 SBM3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTIONS WITH STRATEGY AND BUSINESS MODEL | 128
S1-1 – POLICIES RELATED TO OWN WORKFORCE | 130
S1-2 – PROCESSES FOR ENGAGING WITH OWN WORKFORCE AND WORKERS’ REPRESENTATIVES ABOUT IMPACTS | 134
S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR OWN WORKFORCE TO RAISE CONCERNS | 136

33

S1-4 – TAKING ACTION ON MATERIAL IMPACTS ON OWN WORKFORCE, AND APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO OWN WORKFORCE AND EFFECTIVENESS OF THOSE ACTIONS | 138
S1-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING POSITIVE IMPACTS AND MANAGING MATERIAL RISKS AND OPPORTUNITIES | 142
S1-6 – CHARACTERISTICS OF THE UNDERTAKING’S EMPLOYEES | 142
S1-7 – CHARACTERISTICS OF NON-EMPLOYEES IN THE UNDERTAKING’S OWN WORKFORCE | 143
S1-8 – COLLECTIVE BARGAINING COVERAGE AND SOCIAL DIALOGUE | 144
S1-9 – DIVERSITY METRICS | 144
S1-12 – PERSONS WITH DISABILITIES | 145
S1-13 – TRAINING AND SKILLS DEVELOPMENT METRICS | 145
S1-15 – WORK-LIFE BALANCE METRICS | 146
S1-16 – Remuneration metrics (pay gap and total remuneration) | 146
S1-17 – INCIDENTS, COMPLAINTS AND SEVERE HUMAN RIGHTS IMPACTS | 147
12.3.2 Affected Communities | 148
S3 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL | 148
S3-1 - Policies related to financial literacy | 148
S3-2 - Processes for engaging with affected communities about impacts | 148
S3-3 - Processes to remediate negative impacts and channels for affected communities to raise concerns | 149
S3-4 - Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities and effectiveness of those actions | 149
12.3.3 Consumers and end-users | 152
S4 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL | 152
S4-1 – POLICIES RELATED TO CONSUMERS AND END-USERS | 153
S4-2 – PROCESSES FOR ENGAGING WITH CONSUMERS AND END-USERS ABOUT IMPACTS | 156
S4-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR CONSUMERS AND END-USERS TO RAISE CONCERNS | 157
S4-4 – TAKING ACTION ON MATERIAL IMPACTS ON CONSUMERS AND END-USERS, AND APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO CONSUMERS AND END-USERS AND EFFECTIVENESS OF THOSE ACTIONS | 158
S4-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING POSITIVE IMPACTS AND MANAGING MATERIAL RISKS AND OPPORTUNITIES | 161
12.4. Governance information | 163
Business conduct | 163
G1-1 – BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE | 164
G1-3 – PREVENTION AND DETECTION OF CORRUPTION AND BRIBERY | 167
G1-4 – INCIDENTS OF CORRUPTION OR BRIBERY | 168

34
12.1 General information
12.1.1 Basis for preparation
BP-1 – GENERAL BASIS FOR PREPARATION OF THE CONSOLIDATED SUSTAINABILITY
STATEMENT
This Sustainability Statement for 2025 has been prepared on a consolidated basis, in accordance with the European Sustainability
Reporting Standards (ESRS) and the requirements of Article 8 of EU Regulation 2020/852 on establishing a framework to facilitate
sustainable investment (EU Taxonomy). This statement was prepared in accordance with Appendix 1 Section III of the National
Bank of Romania Order 27/2010 for the approval of accounting regulations in accordance with International Financial Reporting
Standards (republished) as part of the Administrators' Report of the Consolidated Financial Statements.
The scope of consolidation of the sustainability statement corresponds to the scope of consolidation of the Consolidated Financial
Statements, which are prepared in accordance with the International Financial Reporting Standards (IFRS) and is shown in Note
40 of the 2025 C onsolidated and Separate Financial Statements. The information in this statement relates to entities within this
consolidation scope. Metrics provided include information on the BCR Group's upstream and downstream value chain, as
appropriate and specified in the respective text, where applicable.
To ensure that material impacts, risks and opportunities (IROs) are addressed, BCR Group conducted a value chain assessment, as
part of the Double Materiality Assessment (DMA). The material IROs connected to the direct value chain are an integral part of the
report. Also, where value chain information was available, this is reflected in the Consolidated Sustainability Statement of BCR
Group. For instance, the greenhouse gas emissions of a joint venture on which BCR Group does not have operational control are
covered in this report, as indicated in the “Climate change” chapter. Further information on the value chain and its assessment can
be found in the chapter “SBM-1 Strategy, business model and value chain”.
BCR Group (hereinafter also referred to as “the Group” or “we”) did not make use of the option to exclude information on
intellectual property, know-how, or innovation results, as there is no such information that requires disclosure.
The provisions of Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 as regards
corporate sustainability reporting (CSRD) have been transposed into the national legislation, therefore BCR Group does not apply
the exemptions indicated by ESRS 2, BP-1 § 5 (e).
BP-2 – DISCLOSURES IN RELATION TO SPECIFIC CIRCUMSTANCES
Estimation uncertainty and assumptions
Certain disclosed metrics have been calculated using estimates and assumptions. Information on the estimates and data sources,
including potential measurement uncertainties and assumptions, where applicable, is provided in the respective chapters. BCR
Group discloses metrics that incorporate value chain information which has either been sourced directly from counterparties or
derived indirectly through third-party data providers or industry-specific proxies. For example, financed emissions are calculated
using client-provided data where available; otherwise, sectoral emission factors and proxy models are applied. Other Scope 3
greenhouse gas (GHG) emissions categories and energy consumption metrics are based on value chain estimates where direct
measurements are not available, as described in sections 'E1-5 Energy consumption and mix' and 'E1-6 Gross Scopes 1, 2, 3 and
Total GHG emissions'.
Thus, a high level of measurement uncertainty due to limitations in data and methodologies relates to the disclosure of GHG
emissions. In climate target-setting, estimates have been made using the recognized frameworks available at the time. Detailed
descriptions of the methodological approaches can be found in sections 'E1-4 T argets related to climate change mitigation and
adaptation' and 'E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions'.
The presentation of EU Taxonomy reporting is subject to uncertainty due to limited data availability and the use of third-party data.
See the "Reporting methodology and underlying assumptions and interpretations" section within the EU Taxonomy Disclosures
chapter for a description of data limitations and data quality for EU Taxonomy reporting.
35
The pay gap and remuneration ratio are calculated using an estimate of the variable remuneration granted, based on the previous
year’s performance, to reflect total compensation including both fixed and variable pay. Further details are provided in section
"S1-16 Remuneration metrics (pay gap and total remuneration)".
The limitations in the availability of environmental data from our corporate clients and other business relationships may also have
impacted the results of our Double M ateriality Assessment.
Climate-related target setting, alongside the respective actions and policies, require forward-looking parameters over a long-term
horizon. BCR’s parameters are based on expectations, projections, and estimations, which inherently involve a degree of
uncertainty and risk. This is due to factors such as evolving methodologies, fluctuating market conditions, technological
advancements and challenges in data availability, accuracy, as well as potential regulatory changes. These assessments are subject
to change and should not be considered reliable indicators of future performance.
For more information regarding planned actions to improve the accuracy in the future, please refer to section 'GOV-5 Risk
management and internal controls over Sustainability Statement'.
Based on the current estimations, for the implementation of the actions disclosed in this Consolidated Sustainability Statement no
significant Capex or Opex was identified considering the time horizon for each action. Also, specific preconditions which might
affect BCR Group's ability to implement these actions were not identified. Further details concerning the resources allocated for
managing the material IROs are provided in the related chapter.
Transitional provisions and phase-in options
— BCR Group has used the phase-in option under ESRS 1 Appendix C with respect to anticipated financial effects of material risks
and opportunities identified on BCR Group’s financial position and financial performance in future years (SBM-3).
— BCR Group has used the phased-in option under ESRS 1 Appendix C with respect to anticipated financial effects from material
physical and transition risks and potential climate-related opportunities, as indicated u nder E1-9.
— BCR has set GHG intensity reduction targets and, correspondingly, reports progress against these relative targets. BCR does not
report associated absolute values for the target years in accordance with ESRS 1 §133 (transitional provision regarding value
chain information).
— No other transitional provisions under BP-2 §17 are applied by BCR Group for the 2025 Consolidated Sustainability Statement.
Time horizons
BCR Group uses the following time horizons, in accordance with ESRS:
— short-term: up to 1 year.
— medium-term: 1 to 5 years.
— long-term: over 5 years.
External assurance
In developing its 2025 C onsolidated Sustainability Statement BCR Group has not relied upon other European standards. The report
has been subject to a limited assurance process performed by PricewaterhouseCoopers Audit SRL ("PwC"). Unless specifically
indicated, the frameworks, guidelines, policies, effectiveness of the actions, targets and metrics presented in this Consolidated
Sustainability Statement have not been validated, audited, certified or assessed by any external body other than PwC for the limited
assurance purposes.
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Incorporation of information by reference
The following disclosure requirements of ESRS have been incorporated by reference:

List of disclosure requirements | Section | Incorporated by reference to
ESRS2 BP-1 - General basis for preparation of the Consolidated Sustainability Statement: information related to the scope of consolidation | Note 40 | Consolidated and Separate Financial Statements
ESRS2 GOV-1 – The role of the administrative, management and supervisory bodies: information about the composition and diversity of the members of the management and supervisory bodies, including the number of executive and non-executive members, as well as experience relevant to the sectors, products, and geographic locations of BCR Group and expertise regarding business conduct | 11. Statement regarding corporate governance | Administrators’ Report
ESRS 2 SBM-1 – Strategy, business model and value chain: additional elements related to the general strategy and on the strategy and business model inputs and BCR Group’s approach to gathering, developing, and securing those inputs | 4.2. BCR Group’s strategy and business model | Administrators’ Report
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model: additional information about the resilience of the strategy and business model regarding BCR Group's capacity to address its material impacts and risks and to take advantage of its material opportunities | Note 28 | Consolidated and Separate Financial Statements

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12.1.2 Governance
GOV-1 – THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY
BODIES
Organisational structure for sustainability topics
Management Board
The Management Board of Banca Comercială Română S.A (”BCR”, ”the Bank” or “BCR Bank”) has overarching responsibility for
managing the organisation and defining the sustainability strategic pillars, framework, goals and priorities. This includes ensuring
the implementation of the sustainability strategic initiatives by allocating adequate resources and controls and preparing the
Consolidated Sustainability Statement. The Management Board is also responsible for the process of identifying and managing
impacts, risks and opportunities (IROs) and is informed on the status and milestones achieved. These tasks are implemented
through the Sustainability, Diversity and Inclusion Committee (former Sustainability Committee) comprising 7 members,
including all the members of the Management Board of BCR and is chaired by the Chief Risk Officer. The Committee includes both
executive and non-executive members, with no employees representatives.
In 2025, the Management Board and the Sustainability, Diversity and Inclusion Committee were briefed four times on material
environmental matters (sustainable financing, climate change mitigation, Responsible Financing Polic y) by the Head of the BCR
Sustainability Department and experts from CEO, CFO and CRO divisions. For social topics, the diversity strategy for 2025 was
presented and discussed in the Diversity Council and aligned with the CEO and CFO in December 2024. The CRO was briefed
quarterly on sustainability issues and received regular reports. There are also impromptu meetings with other board members on
these matters. On governance topics regarding whistleblowing and specific investigations, the Management Board and Supervisory
Board receive quarterly Compliance Activity reports and semi-annual Whistleblowing reports. Furthermore, the Management
Board oversees the implementation of the Code of Ethics and of the Anticorruption Policy, which are aimed to support the business
conduct of the organization and its commitment to an ethical behavior.
The Management Board, the Risk and Compliance Committee and the Supervisory Board were informed about the status and
results of the Double Materiality Assessment (DMA) by the Sustainability Department. The DMA was approved by the
Management Board.
Supervisory Board
The Supervisory Board of BCR is responsible for approving fundamental decisions on overall BCR strategy. The Supervisory Board
and the Audit Committee are tasked with reviewing and approving the Administrator's Report, which comprises the Consolidated
Sustainability Statement prepared by the Management Board. The Management Board and the Risk and Compliance Committee
are briefed and consulted in the process of setting, reviewing and adapting targets towards material IROs by the Head of
Sustainability and furthermore, a status progress information on targets, projects and DMA was also submitted to the Supervisory
Board in 2025. The Audit Committee was briefed on the annual limited assurance of the CSRD report together with the
Consolidated and Separate Financial Statements.
Administrative, Management and Supervisory Bodies
The Administrative, Management and Supervisory Bodies of all entities within BCR Group are comprised of a Supervisory Board/
Board of Directors and a Management Board/Directorate, with a composition which varies depending on the complexity of each
entity. For further details please see section "11.6 Corporate governance of the subsidiaries".
BCR subsidiaries have the following governance system:
— two-tier system (management function is carried out by the Management Board/Directorate and the supervisory function is
ensured by the Supervisory Board): BCR Banca pentru Locuinte SA, BCR Pensii SAFPP SA and BCR Leasing IFN SA.The
Supervisory Boards of the above-mentioned subsidiaries are supported by the following consultative committees: for BCR Pensii
SAFPP SA, there are Audit Committee, Nomination Committee and Remuneration Committee, whilst for BCR Banca pentru
Locuinte SA and BCR Leasing IFN SA, there is an Audit and Risk Management Committee.
— unitary system (administration is ensured by the Board of Directors): BCR Payments Services SRL, and Suport Colect SRL.
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Sustainability Governance
ESG is a shared responsibility that spans the entire organisation, under the coordination of the Sustainability Department. ESG
governance is led by the CEO, CFO and CRO, ensuring it is embedded in daily operations. This structure fosters close collaboration
with individual business units and facilitates ongoing dialogue with key stakeholders across the Group. Respective responsible B-1
ensure organisational and functional alignment on the topics regarding ESG.
The Sustainability Department is responsible for coordinating the development of the sustainability strategy and ensuring its
integration throughout the organisation, aligned with Erste Group strategy. The Sustainability Department develops key ESG
policies, secures in-house expertise on climate, environmental, social and governance objectives, defines the ESG governance
framework and financing rules and selectively intervenes in structuring single transactions and greenlighting transactions in
controversial sectors, in accordance with Responsible Financing Policy. Additionally, the Sustainability Department acts as a point
of contact and provides advice to BCR Group subsidiaries concerning the integration of sustainability matters in their strategies and
business model. Furthermore, it ensures transparency on BCR Group’s sustainability performance and coordinates with various
stakeholders including regulatory and public bodies. The ESG organisational set-up and governance structures are subject to
reviews to ensure ongoing compliance with applicable legal and regulatory requirements.
Management Boards of BCR subsidiaries
The Management Boards of BCR subsidiaries discuss social, governance and the environmental IROs relevant for their strategies
within their board meetings. They ensure adoption of sustainability-related strategic priorities at subsidiary level. The Management
Boards further support setting sustainability-related targets and implementing activities to achieve them, including approving a
dedicated local budget for sustainability matters when necessary. Discussions between the subsidiaries and the BCR Management
Boards also occur on a regular basis, at least annually.
Representatives of subsidiaries participate in regular Sustainability, Diversity and Inclusion Committee meetings, as well as in
impromptu presentations with Sustainability Department on specific topics.
Composition of the bodies, skills and expertise
Management Board
The Management Board of the Bank consists of five (5) members. As of February 2025, following the authorisation of a new CRO,
the Management Board is comprised of three (3) women and two (2) men. Thus, the average ratio of female to male for 2025 is 3:2
(2:2 in 2024). For 2025, the ratio of female to total Management Board members is 60% (2024: 55.8%). This variation is attributable
to the fact that, as of December 2024, the Management Board was operating with one vacancy, with only four of the five positions
filled.
While the Management Board collectively oversees the sustainability journey, specific responsibilities include:
— The CEO (Mr. Sergiu Cristian Manea) is responsible for ESG strategy and ensures that sustainability considerations are
integrated smoothly into the BCR Group’s corporate culture and governance framework. Also, he supervises the activity of the
Sustainability Department, supporting the overall strategic sustainability agenda and climate strategy and targets of the Bank,
with special focus on transition to a net-zero portfolio and operations, and integration of climate risks within organization.
— The CRO (Mrs. Ioana Anca Gheorghiade) integrates environmental risks, including physical and transition climate risks, into
the BCR Group’s risk management framework and ensures that governance and remuneration principles adequately account
for these risks. The CRO supports the activity of the Sustainability Department ensuring sufficient budget and resources for ESG
Risk Framework and other ESG-related projects, with special focus on: (i) development, definition and supervision of
sustainability strategy, and (ii) development and implementation of organizational policies to address environmental and social
concerns.
Supervisory Board
The Supervisory Board of BCR consists of seven (7) non-executive members. In 2025 no changes as compared to last year have
occurred, thus the average ratio of female to male of the Supervisory Board members is 5:2. The ratio of female to total Supervisory
Board members remained 71.4%. In accordance with the independence criteria set out in Companies Law no. 31/1990 and NBR
Regulation no. 5/2013 on prudential requirements (as subsequently amended and supplemented), the average ratio of independent
members is 57.14%. There are no employee representatives on the Supervisory Board.
The Supervisory Board members are carefully evaluated for their suitability knowledge before appointment, based on the
requirements applicable to credit institutions. T he Supervisory Board, as a collective body, possesses the necessary knowledge,
skills, and professional experience required for sustainability topics oversight and IRO management. Members, collectively have
expertise in banking, risk management, compliance, corporate governance, and sustainability topics relevant to BCR’s geographic
footprint and product portfolio.
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Sustainability-related expertise
The Management Board and the Supervisory Board have access to broad specialist expertise across all functional areas of the
Bank’s, including ongoing internal and external ESG training programs. The Boards also access relevant expertise through their
participation in the Risk and Compliance Committee and the Sustainability, Diversity and Inclusion Committee. Furthermore,
individual members of the Management Board are briefed through direct reporting lines from senior management and via regular
board meetings. In 2025, a mandatory web‑based ESG training was rolled out across the BCR Group to all employees, including
Board Members, strengthening the overall sustainability competence within BCR Group.
Due to the professional background and experience of the individual members, the Supervisory Board has in-depth knowledge of
key sustainability issues such as sustainable investments, the legal framework and legal developments on sustainability issues,
employee concerns, corporate governance and sustainability reporting. The Supervisory Board continually updates and expands its
professional sustainability expertise through ongoing further education and training as well as exchanges with experts. All
members of the Supervisory Board completed the annual regulatory training for the management body on 17 November 2025.
Delivered by a third-party provider, the session also included ESG regulatory updates.
For further details on how specific IROs are overseen and managed within the Group, please refer to chapter ‘GOV-2 – Information
provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies’.
For further information on the composition and experience relevant to the sectors and products of BCR Group, as well as business
conduct related experience, please refer to section '2 General presentation' of the Administrators' Report.
For more details refer to sections 'The Supervisory Board (SB)' and 'Management Board (MB)' under 'GOV-1 - T he role of the
administrative, management and supervisory bodies'.
GOV-2 –INFORMATION PROVIDED TO AND SUSTAINABILITY MATTERS ADDRESSED
BY THE UNDERTAKING’S ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY
BODIES
To ensure continuous progress and transparency in sustainability, BCR Group utilizes an ESG KPI Dashboard developed by Erste
Group, which enables monthly performance monitoring of key sustainability metrics and targets. This includes sustainable
financing volumes across various business lines, financing activities and GHG emissions and decarbonisation KPIs on a group
level. The Management Board has set up its own Sustainability, Diversity and Inclusion Committee, whose activities are described
in the (consolidated) Administrators' Report. In these Committee meetings, the BCR Sustainability Department, alongside other
experts, provides updates on the progress toward ESG targets. This equips Committee members with sufficient information to
incorporate impacts, risks, and opportunities into strategic decision-making. For other IROs, such as those for Own Workforce,
Consumers & End-users and Business Conduct, ad-hoc information is provided to the management.
Key insights and findings are further reported through the ESG KPI Monitoring Report, provided monthly by Erste Group to all
subsidiaries ESG stakeholders including board members. This reporting structure ensures alignment with sustainable finance and
decarbonisation targets, and supports decision-making at all organisational levels. It includes detailed overview on sustainable
financing results and targets’ achievements (new business flow and stock) at entity level and financed emissions and
decarbonisation targets at Erste Group level. Additionally, quarterly reviews of decarbonisation figures are assessed and included in
reports which are regularly presented in the Sustainability, Diversity and Inclusion Committee and Risk Committee, where
progress toward targets and the development of transactions that are still in progress are assessed. Moreover, different reports are
presented to the investors, rating agencies and other external stakeholders. This framework demonstrates BCR Group’s
commitment to transparency, governance and sustainability.
Material IROs are also considered in major transactions made by BCR Group. The BCR Group Responsible Financing Policy
defines industry-specific ESG criteria and establishes financing rules to determine whether, and under what conditions, a
transaction may proceed. Additionally, the policy outlines an assessment process to ensure well-documented decision-making.
These criteria reflect the identified IROs, with particular emphasis on financing emission-intensive sectors and their associated
biodiversity impacts.
All IROs identified as material in the DMA were discussed with and approved by the Management Board and presented to the Risk
and Compliance Committee. For the list of material IROs, please refer to chapter ‘SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and business model’.
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Policy governance
Group policies and procedures are established across various areas within the organization, such as business, central functions,
finance, IT, banking services, and risk management. The implementation of each specific group policy is overseen by the
Management Board member responsible for that area. The CEO is responsible for central functions, including sustainability
matters related to the Own Workforce. The CFO oversees finance, while the COO handles IT and banking services. Risk
management, including environmental risks, falls under the CRO’s responsibility. The respective functions entail responsibilities
for policies, which are detailed in the following chapters in relation to the key sustainability matters and their associated IROs.
Although the Management Board of Erste Group holds overall responsibility for a unified strategy and framework, each local
Management Board is tasked with implementing these policies, taking into account their specific circumstances. The same
approach is valid at BCR level. The local approval levels for policies and procedures, as detailed in the BCR Group Policy
Framework are as follows: all policies and risk-related procedures require Management Board approval. Remaining procedures are
approved by the relevant Board Member if they apply to multiple entities, or by the Executive Manager if they apply to a single
entity. Additionally, policies identified by the Compliance function as entailing significant or critical risk are approved by the
Supervisory Board.
BCR Group has policies and procedures in place to manage IROs and integrate them into the company’s structure. The following
examples show how IROs are managed within the group:
Policy governance for the identified climate change mitigation IROs
As a leading financial institution in Romania, BCR Group plays an important role in accelerating the real economy’s transition.
Achieving a low‑carbon future requires coordinated action across the financial system and industry, and BCR Group is committed
to driving this transformation by steering capital toward climate‑positive solutions and supporting clients in decarbonizing their
business models. Through this approach, we actively enable climate‑change mitigation across the country. The reduction of
financed CO₂-emissions is a shared responsibility and lies with the CEO, CRO and Chief Retail Officer (CRetO).
BCR Group’s Responsible Financing Policy establishes industry‑specific ESG exclusion and phase‑out criteria that prioritise
climate‑change mitigation, setting clear thresholds and guidelines to determine transaction eligibility in carbon‑intensive sectors.
By directing financing away from high‑emission activities and toward lower‑carbon alternatives, the policy reduces ESG‑related
credit and reputational risks while supporting the transition to a net‑zero economy. It also defines non‑financial risk profiles that
trigger enhanced risk management support, and outlines sector‑specific assessment procedures to ensure informed
decision‑making aligned with our commitment to responsible, climate‑aligned financing. Responsibility for this policy lies within
the Sustainability Department.
The Sustainability Department within the CEO area of BCR, establishes the framework and provides guidance to all entities
covered by the Group Responsible Financing Policy and it is also responsible for the policy content. Regular communication
between BCR Group and Erste Group policy owners ensures a mutual understanding and operationalization of the policy. The
policy was most recently updated in November 2024.
Policy governance for the identified gender equality IRO
Group Diversity Management (GDM) supports the implementation of the overall strategy by developing a comprehensive
communication strategy for Erste and BCR Group’s diversity impact and by serving as a source of expertise for local Diversity
Management team.
In addition, GDM provides a framework and guidance to all entities within the scope of the Group Diversity & Inclusion Policy
(including BCR). Embedded in the Group People & Culture division, GDM collects group-wide diversity data, identifies key focus
areas and develops a diversity strategy in close collaboration with relevant stakeholders (such as local Diversity Management,
Group Communications & Corporate Affairs, Group ESG Office). GDM develops diversity targets and provides diversity data for
reports, rating agencies and communication on a Group level.
Local Diversity Management (LDM) acts as a focal point for the diversity impact of BCR Group. While GDM defines the diversity
strategy, LDM adapts measures, trainings and the Group Diversity & Inclusion Policy, to suit local circumstances. Regular
communication between GDM and LDM ensures mutual understanding of the diversity impact across Erste Group.
BCR Group aims to create equal opportunities regardless of gender, and to remediate the impact of the gender pay gap by various
measures, including by balancing gender distribution in top-management positions (board level and B-1). The Management Board
of BCR is responsible for the implementation of the Policy Diversity and Inclusion on BCR Group level.
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GOV-3 – INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE
SCHEMES
The Remuneration Policy for BCR Group outlines the structure and criteria for compensating members of the Management Board
and Supervisory Board. No variable remuneration is paid to members of the Supervisory Board.
The Remuneration Policy for the Management Board of BCR is consistent with the strategy of BCR Group and Erste Group and is
designed to motivate management board members to promote a sustainable and positive development of the company. The
remuneration of Management Board members of BCR consists of two components: fixed and variable remuneration. Fixed
remuneration is granted regardless of performance and comprises the basic salary as well as contributions to the company’s
pension scheme (pension fund), insurance benefits and other benefits in-kind. Variable remuneration is always performance-
linked. Variable remuneration is granted and paid on the basis of specific, measurable performance criteria that are aligned with
BCR Group’s and Erste Group’s business strategy and long-term development. Both Erste Group and BCR Group level targets and
individual targets are taken into account. If minimum performance criteria are not met, variable remuneration is not awarded.
The remuneration of BCR Management Board members is set by the Supervisory Board. Remuneration consultants are not
involved in determining remuneration. The Supervisory Board of BCR has set up an independent Remuneration Committee
pursuant to legal requirements, which advises the Supervisory Board on remuneration matters. Both business and leadership
performance of BCR Management Board are assessed by a Performance Evaluation Committee formed at Erste Group Level which
prepares recommendations for BCR Supervisory Board.
The Management Board's variable compensation is limited to a maximum equal to 100% of their fixed pay, serving as a cap on
bonuses. These criteria are annually assessed by the Remuneration Committee of the Supervisory Board of BCR.
Variable remuneration is structured to include both upfront and deferred payments. For amounts exceeding EUR 150,000, 60% of
the variable remuneration is deferred, while for amounts below this threshold, 40% is deferred. At least half of both the upfront and
deferred remuneration is delivered in the form of non-cash instruments, such as phantom certificates, with the remaining portion
paid in cash. The Remuneration Policy also includes malus and clawback provisions in accordance with EBA guidelines.
Components of the remuneration of the members of the Management Board
ESG related targets are aligned with the main pillars of the sustainability strategic agenda of BCR Group. BCR Group’s primary
impact on the environment and biodiversity lies in its lending activities and more precisely, the resulting financed emissions. As a
financial institution, it is therefore its role to contribute to the transition towards a low-carbon economy by engaging with its clients
and supporting them along their decarbonisation pathway. Measurable ESG targets, aligned with BCR Group's objectives, are
suggested by experts of the CEO, CFO and CRO division and approved by the Supervisory Board.
These targets are integrated into the variable remuneration framework and translated into individual Management Board member
performance KPIs part of their annual performance scorecard.
In 2025, up to 10% of the relevant Management Board members’ variable remuneration was based on ESG criteria. This criteria also
comprises climate-related considerations such as net zero transition for both own operations and portfolio (1/3 weight of climate
related considerations). However, a separate share in the overall ESG related score is not defined for climate related aspects. The
Remuneration Committee prepares the Supervisory Board’s resolutions on remuneration in accordance with legal requirements.
Performance is evaluated using a five-point rating system, and ESG elements can contribute as much as 10% to the total
performance assessment. The BCR Sustainability Department is responsible for reviewing these factors at the conclusion of the
evaluation period. The results of this evaluation are reviewed and approved by the Remuneration Committee, who subsequently
informs the Supervisory Board.
ESG targets for Management Board members may include, but are not limited to, maintaining a strong ESG performance,
supporting the sustainable transition (i.e. sustainable financing and net zero transition).
In 2025, the ESG targets for Management Board members included two overarching targets, which are not directly linked to any
specific sustainability matter:
— Maintaining a good ESG performance for Erste Group is shared by the CEO/C&M, Chief Retail Officer, CFO and CRO and is
assessed by external ESG ratings (MSCI, ISS ESG, SUSTAINALYTICS, CDP). Except for CDP, which focuses on climate impact,
the other three ESG rating agencies measure the environmental, social as well as governance related performance of companies
as well as their ability to manage ESG risks .
— Implementation of the ECB (European Central Bank) ESG Action Plan is assigned to the Chief Risk Officer.
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Further, the following ESG targets which are explained in more detail in the relevant chapters were assigned to Management Board
members:
— Supporting the Portfolio net zero transition (net zero target setting) at Erste Group level is shared by BCR Group risk, finance,
and business Board Members (for more detailed information on this topic, please refer to chapter 'E1-4 – Targets related to
climate change mitigation and adaption');
— Strategic sustainability agenda, climate strategy, and targets of BCR Group are assigned to the CEO;
— CSRD reporting is assigned to the CFO;
— Increasing sustainable retail mortgages (target volume of new sustainable retail mortgages) is assigned to the Chief Retail
Officer (please refer to chapter 'E1-4 – Targets related to climate change mitigation and adaption');
— Increasing sustainable corporate financing (target volume of new sustainable corporate financing) is assigned to the CEO
(please refer to chapter 'E1-4 – Targets related to climate change mitigation and adaption');
— Increasing zero-carbon electricity sourcing is assigned to the CFO (please refer to chapter 'E1-4 – Targets related to climate
change mitigation and adaption').
Note: BCR’s targets of Sustainable financing are determined according to the criteria described in 'E1-4 – Targets related to climate
change mitigation and adaption' and must not be confused with the Green Asset Ratio (GAR) KPI under the EU Taxonomy.
GOV-4 – STATEMENT ON DUE DILIGENCE
Our Code of Ethics illustrates how BCR Group policies and processes are aligned with international instruments that respect
human rights, in a manner which is consistent with the UN Guiding Principles on Business and Human Rights and the OECD
Guidelines for Multinational Enterprises. Through the Code of Ethics, these international principles are also incorporated into BCR
Group’s policies and processes to ensure that all BCR Group operations are undertaken with the highest standards of ethical
behaviour and respect for human rights.
BCR Group has embedded the concept of sustainability into its business strategy and relies on sustainable, value-driven and
responsible business practices that enable BCR Group to generate stable returns for all stakeholders over the long term. As a
financial institution operating across diverse sectors, BCR Group recognises that its activities impact the environment or society. To
address these challenges, BCR Group applied continuous due diligence processes throughout the Double Materiality Assessment
designed to identify actual and potential negative impacts on the environment and society, as well as in the policies and processes
to prevent, mitigate and manage them.
The table below maps the core elements of BCR Group’s due diligence process to their specific locations within the Consolidated
Sustainability Statement. These core elements include embedding due diligence into governance, strategy and business models,
engaging with affected stakeholders, identifying and assessing adverse impacts, taking actions to address those adverse impacts,
and tracking and communicating the effectiveness of these efforts. This provides a clear depiction of the undertaking's actual due
diligence practices.
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Core elements of due diligence

Core elements of due diligence | Paragraphs in the Consolidated Sustainability Statement
a) Embedding due diligence in governance, strategy and business model | ESRS 2 GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
ESRS 2 GOV-3 – Integration of sustainability-related performance in incentive schemes
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
b) Engaging with affected stakeholders in all key steps of the due diligence | ESRS 2 GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
ESRS 2 SBM-2 – Interests and views of stakeholders
ESRS 2 IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities
E1-2 – Policies related to climate change mitigation and adaptation
S1-1 – Policies related to own workforce
S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts
S3-1 - Policies related to affected communities
S3-2 - Processes for engaging with affected communities about impacts
S4-1 – Policies related to consumers and end-users
S4-2 – Processes for engaging with consumers and end-users about impacts
G1-1 – Business conduct policies and corporate culture
c) Identifying and assessing adverse impacts | ESRS 2 IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities
d) Taking actions to address those adverse impacts | S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions
S3-4 - Taking action on material impacts on affected communities and managing the effectiveness of those actions
S4-4 – Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users and effectiveness of those actions
E1-3 – Actions and resources in relation to climate change policies
e) Tracking the effectiveness of these efforts and communicating | E1-4 – Targets related to climate change mitigation and adaption
S1-5 - Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities
S3-5 - Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities
S4-5 – Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities

GOV-5 – RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY
STATEMENT REPORTING
The three main risks in the sustainability reporting process are: 1) including errors in reporting, such as inaccuracies in both
quantitative and qualitative data, 2) reporting on irrelevant information, such as including non-material information that does not
significantly impact stakeholders, as well as 3) omitting relevant information, such as failing to disclose material information that is
important for stakeholders. These risks are also valid for value chain data.
To mitigate these risks, BCR Group implements four main mitigation measures. The first measure involves internal controls for
quantitative data. Many of the internal controls and processes used for financial reporting are also applied to quantitative data in
sustainability reporting. This includes the 4-eyes principle and data validation to minimise errors.
The second measure includes internal controls for qualitative data, including the 4-eyes principle which also applies to quantitative
data. Further, the review steps outlined in the first measure ensure the accuracy and relevance of qualitative data. This includes
multiple internal feedback loops, a management review and external consulting to continuously improve the assessment of
qualitative data.
The third mitigation measure is the Double Materiality Assessment (DMA). This comprehensive assessment was carried out in
collaboration with an external consultant to ensure that the information presented is relevant and material. This helps in avoiding
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the reporting of irrelevant information and ensures that all significant aspects are covered. Further information regarding the DMA
can be found in chapter 'IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities'.
The fourth mitigation measure is the relevance analysis. This analysis is based on the results of the DMA and identifies the
mandatory and material disclosure requirements and data points following the ESRS that are subsequently disclosed in the
Consolidated Sustainability Statement.
In 2025, BCR Group implemented a new disclosure management tool to further improve the reporting process for the Consolidated
Sustainability Statement, as well as mitigating the aforementioned risks. These improvements in control measures result in
increased efficiency and control of the reporting process that include:
— granular user rights and permissions that can be granted at the section or chapter level;
— clear documentation of changes;
— approval of tracked changes being restricted to document owners.
Furthermore, there is improved data integration from various sources that are directly uploaded to the disclosure management tool
as well as dynamic linking. This dynamic linking means that once the data has been uploaded, it refreshes across the entire
document to ensure consistency and accuracy.
Future considerations will result from risk management and the internal control system and be used to continuously improve the
sustainability reporting process. This means refining internal controls, enhancing data validation procedures and conducting
regular assessments to ensure the relevance and accuracy of reported information. Furthermore, feedback from internal reviews,
external consultants and auditors will be incorporated into future reporting cycles to address any identified gaps or areas for
improvement.
The Management Board and Audit Committee are informed of the findings of the risk assessment for sustainability reporting on an
annual basis. The Consolidated Sustainability Statement is presented for pre-approval to the Management Board on 18 March 2026
and Supervisory Board on 27 March 2026.
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12.1.3 Strategy
SBM-1 – STRATEGY, BUSINESS MODEL AND VALUE CHAIN
BCR Group’s business model
BCR pursues a universal business model, with a balanced presence in Retail and Corporates, which includes public sector, and
capital markets, being the 2nd largest player based on total assets in the banking sector in the Romanian market.
BCR has a portfolio of more than 3 million customers serviced through a network of 20 business centers, 18 mobile desks dedicated
to companies and 290 branches located in cities with more than 10,000 inhabitants in Romania, where 73% of units are cashless.
Customers omnichannel service also includes a national network of ATMs and around 1.800 multifunctional machines, as well as
full banking services through internet banking, mobile banking, phone-banking and e-commerce.
Each business segment is providing tailored services to meet the specific needs of target client groups. BCR offers a wide array of
services which varies from current accounts, lending, deposits, and other products specific to each of the business segment.
Please refer to section '4.2. BCR Group’s strategy and business model' of the Administrators' Report for more details on products
and customer groups.
BCR's core strategy is to build Financial Health for local communities by offering financial mentoring, tools and products that
enable people and businesses to adopt healthy financial habits and improve their future perspectives.
For further information on the business segments of BCR Group refer to Note 42 in the Consolidated and Separate Financial
Statements. BCR Group operates only in Romania, thus details on the total headcount of 5,117 (2024: 5,220) employees by
geographical area are not provided. For further information on the headcount of BCR Group employees please refer to chapter 'S1-6
Characteristics of the undertaking's employees'.
BCR Group’s sustainability strategic initiatives
BCR Groups is pursuing the goal defined in the Statement of Purpose of Erste Group, namely, to promote and secure prosperity for
all people throughout the region, and it has incorporated key ESG themes into the corporate strategy. BCR Group believes that this
is the only way to be successful over the long term, working towards a fairer and more inclusive society.
BCR Group’s sustainability strategic priorities are catalysed around two main pillars: supporting the green transition and
promoting social inclusion.
Supporting the green transition
BCR Group’s primary impact on the environment lies in its lending activities and more precisely, the resulting financed emissions.
It is therefore our role to contribute to the transition towards a low-carbon economy by engaging with clients and supporting them
along their decarbonisation pathway while facing evolving challenges, such as policy uncertainty, both on country and European
level. BCR Group believes this to be the most important lever to help fostering a green transition.
BCR Group’s key priorities relating to the environment include:
— the ambition to achieve a net-zero status of BCR’s portfolio by 2050,
— aiming to achieve a net-zero status in own operations (scope 1 and scope 2) by 2030 and
— maintaining a strong role in sustainable financing by funding climate change mitigation and adaptation actions.
Promoting social inclusion
BCR Group’s social impact involves its interactions with employees, customers and the broader community while establishing and
maintaining good ethical compliance for building trust with stakeholders and ensuring long-term organizational stability.
For the Social pillar, BCR Group has established the following strategic priorities:
— boosting financial inclusion with social banking, bringing communities closer together and strengthening social cohesion;
— helping customers gain financial health and financial literacy;
— promoting diversity, including gender diversity, and
— fostering good ethical conduct and compliance with the regulations in force, e.g. through extensive corruption and bribery
prevention and detection trainings.
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Significant markets and customer groups
BCR Group’s sustainability priorities focus on its significant markets and customer groups, with detailed approaches customized
for each. Further information regarding the targets set for these strategic priorities is available in the respective chapters. In 2025,
there were no significant changes to the products and services offered, markets served, or customer categories compared to the
previous reporting cycle.
Retail
In the Retail segment, most of the environmental impact stems from the buildings sector, which includes energy used for
constructing, heating, cooling and lighting homes and businesses, as well as the appliances and equipment installed in them. These
factors account for over one third of global energy consumption and emissions. Retail mortgages contribute a large share (29% as at
31 December 2024 and 28% as at 31 December 2025) of the total of BCR Group ’s portfolio activities. BCR Group's ambition
supports the decarbonisation of the housing sector while safeguarding affordability, inclusion and access to finance. As regulatory
frameworks evolve and government incentives strengthen, the Group will reassess its ambition level to ensure continued alignment
with the broader transition of the real estate sector.
For achieving the decarbonisation targets for the retail mortgage portfolio, BCR Group will adopt the following approach:
Technological possibilities to decarbonise: A significant part of the buildings stock in the BCR Group region is not yet ‘climate-
proof’ due to old age of the buildings and poor insulation. An improvement can only be achieved through changes in customer
behaviour, which can be influenced in the short-term by cost considerations, and in the mid and long-term, through regulations
and availability of government subsidies in Romania, which will foster further investments and improvements.
Product offering: Within our retail mortgages portfolio, we have introduced "Casa Mea Natura" loan for energy efficient homes
(energy performance certificate class A and B). We are currently working on expanding our green offering to include renovation
loans focused on energy efficiency and renewable energy integration. To support our decarbonization strategy for retail mortgage
portfolio, we shall continue and enhance our actions to collect Energy Performance Certificates (EPCs) for private individuals
secured loans (dedicated campaigns for customers having mortgage loans for houses and/or for buildings for which an EPC is not
collected) and to offer loans for energy performance improvements.
Insurance linked services, either bundled with financing products or standalone, will be part of BCR Group’s overall ESG
proposition. The cooperation with insurance companies, should help to close the gap of insurance coverage for certain natural
hazard risks, such as river floods.
Corporates
Each of BCR Group’s Corporate four business lines: SME, Large Corporates, Public Sector and Commercial Real Estate (CRE)
covers a distinct customer type with unique needs and preferences and hence specific sales and service models.
Approach for decarbonisation. The implemented approach for corporate business is designed to support the ambition to achieve
a net zero status of the portfolio by 2050 at Erste Group level, as it consists of performing an initial client transition readiness
assessment through an ESG Assessment Questionnaire, and an in-depth client engagement process with identified clients while
evaluating financing needs. BCR Group understands its diverse customer base and is determined to help customers find a tailored
approach, fitting to their needs.
Product offering: BCR Group’s ambition includes helping clients to realise the benefits of decarbonisation by supporting cost-
effective action. BCR Group offers specific purpose financing and advisory services focused on climate solutions, including
renewable energy projects, high-efficiency buildings in commercial real estate and energy efficient production processes.
Through its banking activities, BCR Group aims to provide financing which enables the net-zero transition of the Romanian
economy. Therefore, BCR Group is constantly in touch with its customer base as the main stakeholder, to better understand their
needs. For further information on the stakeholder engagement, please refer to chapter 'SBM-2 Interests and views of stakeholders'.
BCR Group’s value chain composition
BCR Group’s value chain encompasses the inflow and outflow of money, facilitating payments and transactions. Inputs are secured
by attracting both financial resources from the international financial market, shareholders and clients’ savings and investments
that are transformed by making the cash available as loans while simultaneously managing the associated risks. This is performed
with the support of the BCR Group professionals that are equipped with the right competencies and resources. BCR Leasing offers
financial leasing and financial credit flexible and efficient solutions for the purchase of vehicles, fleets, equipment, industrial
machinery, agricultural machinery, medical equipment. BCR Pensii performs activities related to the private pensions market in
Romania, including mandatory (Pillar II) and voluntary private pensions (Pillar III). BCR Payments Services SRL is a subsidiary of
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BCR Group responsible for centralized processing of payment transactions in local currency and foreign currency and debt
instruments, debit instruments and accounts management (opening, closing and maintenance).
Key business actors include BCR Group’s clients, both private individuals and corporations, who benefit from BCR Group's services
offered through digital and direct distribution channels.
For the value chain assessment, BCR Group aims to reflect the interests and views of affected stakeholders, as well as users of the
Consolidated Sustainability Statement which are further described in chapter 'SBM-2 Interests and views of stakeholders'.
Moreover, for the identification and assessment of impacts, risks and opportunities (IROs), special consideration was given on the
upstream and downstream value chain to ensure completeness of the relevant IROs. In this context, BCR Group analysed the flow
of activities, processes and value creation within the organisation.
In the context of the Double Materiality Assessment (DMA), BCR Group is currently limited in considering all aspects of the value
chain due to data availability constraints. Therefore, the focus has been on the direct value chain. With the implementation of EU
legislation (e.g., reporting in line with the requirements of the Corporate Sustainability Reporting Directive, additional
requirements under the Corporate Sustainability Due Diligence Directive), BCR Group expects these limitations to be addressed,
leading to more detailed value chain information in the future.
Upstream
The upstream value chain includes the goods and services procured by BCR Group, such as IT services, office supplies, property
and infrastructure, consultancy and other external services that support the Group’s operations. BCR Group conducted an in-depth
review of the costs related to purchased goods and services in 2023, considering it was the most recent data which could be used for
the Double Materiality Assessment (DMA). The total expenditures were categorised by sourcing categories from BCR Group’s
procurement system, with main expenditures considered for detailed assessment. These categories included IT services,
infrastructure software, marketing, property management, consulting and personnel management expenditures. For each
expenditure category, BCR Group assessed the potential sustainability matters and IROs. For example, IT services were included in
the assessment for Climate Change (E1) due to their high energy consumption, while consulting services were considered in the
assessment of Workers in the Value Chain (S2). The insights from these assessments were included in the overall evaluation. Also,
the impacts of climate change for a joint venture on which BCR Group does not have operational control have been considered.
Own operations
Refers to the BCR G roup own operational activities, including the management of its workforce, office branches, and direct
business activities under the full scope of consolidated entities under IFRS. Additionally, it was evaluated whether BCR Group has
operational control over not fully consolidated entities. All aspects of own operations were considered in the value chain
assessment.
While environmental impacts from own operations were few, material IROs were identified in the areas of own workforce (S1),
consumers and end-users (S4) and business conduct (G1). To ensure completeness and accuracy of these impacts, BCR Group
closely aligned with the responsible departments to reflect these effects adequately in the reporting.
Downstream (Portfolio)
The largest proportion in the overall BCR Group business pertains to the activities of the Bank and of BCR Leasing IFN S.A. and
the financing provided to a diverse range of clients, including corporate and retail customers, institutional investors and
stakeholders involved in its sustainability initiatives. The downstream value chain is subsequently referred to as the portfolio, as all
of BCR Group’s downstream material impacts are linked to it. These conclusions are derived from IROs assessed following the
DMA process and an in-depth portfolio analysis. This analysis was based on the breakdown of credit exposure and the calculation
of financed emissions. The IROs related to the financed sectors are directly reflected in the Double M ateriality Assessment. For
example, the highest individual sectoral exposure (energy) is reflected in the identified material negative impact relating to
financed CO2 emissions of BCR Group.
SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS
BCR Group has gathered relevant information to reflect the interests and perspectives of stakeholders both in business processes
and in the Double Materiality Assessment (DMA) for the Consolidated S ustainability Statement.
As part of the DMA, BCR Group classified its stakeholders into two categories: affected stakeholders and users of the Consolidated
Sustainability Statement. These groups are defined as follows:
— affected stakeholders: retail customers, corporate clients, employees, suppliers, and nature;
— users of the Consolidated Sustainability Statement: investors, analysts, rating agencies, supervisory and regulatory authorities,
NGOs, potential future employees and other readers.
48
For each stakeholder group, at least one internal contact person was identified. These individuals are in regular dialogue with the
respective stakeholders, are familiar with their concerns and viewpoints and are able to provide informed insights.
During the DMA workshops, but also one to one interviews with key experts, the topics relevant to each stakeholder group were
identified and systematically documented. This approach ensured that both the actual and potential impacts of BCR Group’s
business activities on stakeholders, as well as the risks and opportunities identified by stakeholders of BCR Group, were
appropriately considered in the materiality assessment.
The involvement of internal experts who maintain ongoing contact with the respective stakeholder groups contributed to the
definition of IROs in the DMA. For instance, the IROs for S1 (Own Workforce) were defined with the BCR People and Culture
department who is in close contact with the two trade unions acting as workers’ representatives. For further details on the type of
engagement, its purpose, implementation and the topics discussed with stakeholder groups, please refer to the table "Key
stakeholder engagement" below.
Key stakeholder engagement

Key Stakeholders | Why BCR Group engages | How BCR Group engages | Interests and views of key stakeholders | Actions / results of engagement
Customers | Engagement with customers enables BCR Group to understand their needs, anticipate market trends and consequently adjust services. | – advisory sessions – conferences and seminars – website – customer experience program | – improve customer experience – enhance products and services – accelerate innovation and digitalisation | BCR Group’s engagement enables a regular assessment of how customer needs can be met through product and service offerings.
Employees | BCR Group engages with employees to foster an environment of open dialogue and provide them with continuously improving opportunities for growth and development. | – employee surveys – Intranet – training, coaching and mentorship – Employee Resource Groups – annual feedback and professional development talks – periodical meetings between trade unions and BCR board members | – organisational changes that might impact employees – foster diversity, equity and inclusion – support employee health and work-life balance – increase employee involvement – strategic business projects and how it may impact jobs; – any topic of interest to the employees. | BCR Group’s engagement enables the targeted adaptation of the people and culture strategy.
Nature, represented by academic institutions, and NGOs | BCR Group engages with NGOs and academic institutions to foster an open dialog and conducts content- driven debates on important topics aimed to develop educational opportunities | – conferences and events – bilateral meetings, training sessions, workshops | – financial literacy – access to quality education – environmental education – climate change and accelerate climate action – protect biodiversity – digital and entrepreneurial education – life skills for young people | BCR Group’s engagement enables identification of current and future priorities from the academic society and non-profit sector and reflect them early in the strategic planning.
Investors, analysts and rating agencies | By engaging with investors and analysts, BCR Group aims to foster a clear understanding of company performance and strategy. | – quarterly results investor presentations – bilateral meetings, investor calls – bond issue investor presentations and roadshows – periodic rating reviews and annual management meetings with rating agencies’ bank analysts, – data input on various due diligence questionnaires requested by the rating agencies | – financial performance and strategy – customer business volumes development, product & process digitalization – liquidity and funding, MREL issuance – risk management & asset quality – transparency – ESG targets and implementation status, green financing and climate action | BCR Group’s engagement increases the level of transparency in external reporting to ensure a clear understanding of the organization’s performance and strategy.
Supervisory and regulatory authorities | BCR Group conducts a permanent, pro-active dialogue with national and European supervisory and regulatory authorities to understand supervisory expectations. | – supervisory dialogues- – workshops, meetings – inspections | – drive performance and execute strategy for sustainable growth – accelerate climate action – foster diversity, equity, and inclusion – enhance risk management to ensure resilience – increase transparency | BCR Group’s engagement enables it to adapt processes and increase the level of transparency to fulfil supervisory expectations.
Suppliers | We engage with our suppliers to ensure high standards of quality, integrity and compliance throughout the procurement process | – Supplier feedback questionnaire | – smooth and efficient cooperation – simple and streamlined business processes – effective and trustworthy communication | Our engagement enables regular assessment of how supplier expectations are addressed in procurement processes and collaboration

The key interests of BCR Group’s stakeholders, identified through ongoing engagement, inform and shape the business model. It is
however, often impossible to attribute amendments to the strategy exclusively to stakeholder views without considering other
factors, such as business needs.
A key consideration for BCR Group’s stakeholder engagement is the respect and promotion of human rights. BCR Group does not
tolerate any form of discrimination, such as discrimination based on gender, age, marital status, family obligations, religion,
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political conviction, sexual orientation, race, nationality, social or ethnic background, disability, physical appearance, or any other
aspects unrelated to the business. This not only holds true for BCR Group’s own workforce but is also reflected in the engagement
with workers in the value chain, and its customers.
The Management Board is responsible for managing the organisation to the benefit of the BCR Group, considering the interests of
the shareholders and the employees, as well as the public. Information on the outcomes of engagement with all stakeholder groups
is provided to the Management Board both informally through meetings with internal stakeholder representatives, as well as
formally in board meetings. The Supervisory Board is similarly informed about engagement with key stakeholder groups.
SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION
WITH STRATEGY AND BUSINESS MODEL
This chapter gives an overview of BCR Group’s material IROs, resulting from the Double Materiality Assessment (see IRO-1). In
the table below, all material IROs are listed, based on the sustainability matter they relate to, the type of IRO, the position in the
value chain and the time horizon the materiality has been detected in. Additional information regarding the material IROs and
their interaction with BCR Group’s strategy and business model can be found in the respective chapters.
Table Impacts, risks and opportunities of BCR Group

Sustainability Matter | Type of IRO | IRO Description | Value chain | Time horizon
E1- Climate change adaptation | Risk | BCR Group faces a higher credit risk as climate-related physical risks can lead to a devaluation of collateral and/or to negative effects on the business models and lastly financial stability of debtors. The consequences are increased risk provisions for BCR Group and connected negative effects to its P&L and own funds. (Physical Risk) | Downstream | Long-term
Opportunity | Additional financial opportunities might be captured by BCR Group from financing of strategies/projects conducted by a wide array of entities, from local SMEs to large companies (e.g adaptation solutions for residential and commercial real estate, agriculture), municipalities and other public entities for adaptation infrastructure. | Downstream | Long-term
E1-Climate change mitigation | Potential Negative impact | The CO2 emissions of BCR Group in the upstream value chain contribute to climate change and thus to global warming. | Upstream | Long-term
Potential Negative impact | The CO2 emissions of BCR Group's own operations contribute to climate change and thus to global warming. | Own operations | Long-term
Negative impact* | The CO2 emissions financed by BCR Group contribute to climate change and therefore to global warming. | Downstream | All time horizons
Risk | BCR Group faces a higher credit risk as climate-related transition events (regulatory interventions) can lead to negative effects on the profitability of business models and lastly the financial stability of debtors. The consequences are increased risk provisions for BCR Group and connected negative effects to its P&L and own funds. (Transition Risk) | Downstream | Long-term
Opportunity | For BCR Group, additional financial opportunities may arise from investments in and the financing of clients to support their transition to sustainable business initiatives, and subsequently, the implementation of decarbonisation measures. | Downstream | Medium to Long-term
E1-Energy | Potential Negative impact | The energy (electricity, fuel and heating) used by BCR Group suppliers generates CO2 emissions and therefore contributes to climate change. | Upstream | Medium-term
Potential Negative impact | Until the assumed net zero targets for own operations are achieved, the energy (electricity, fuel and heating) used by BCR Group continues to generate CO2 emissions and therefore contributes to climate change. Also, a potential slow progression on the adoption of renewable energy (either purchased or self-generated) may lead to a higher contribution to any risk associated with climate change, physical or transitional. | Own operations | Medium-term
Negative impact* | BCR Group's financing of energy-intensive industries may lead to increased greenhouse gas emissions, thereby influencing climate change and global warming trends. | Downstream | All time horizons
Potential Positive impact | Through the financing of renewable energy projects, energy grid infrastructure and supply side flexibility (e.g. battery storage) BCR Group supports energy security, enables CO2-neutral power and contributes to the systemic shift towards a sustainable economy. | Downstream | Medium to Long-term
Risk | Price instability on the energy market due to climate change can result in decreased profitability in companies in energy-intensive sectors as well as liquidity shortage of retail clients, leading to a higher default risk and a related increase in risk provisions for BCR Group, impacting P&L as well as own funds.(Transition Risk) | Downstream | Medium-term
Opportunity | BCR Group's financing of renewable energy projects (e.g. wind and solar projects, battery storage) and energy transition enables neutral/ low CO2 energy production and offers new opportunities for the portfolio. | Downstream | Medium to Long-term

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Sustainability Matter | Type of IRO | IRO Description | Value chain | Time horizon
E4- Impacts on the extent and condition of ecosystems Examples: Land degradation; Desertification; Soil sealing | Negative impact* | Financing real estate and public infrastructure projects can have a negative impact on biodiversity as soil is sealed and land is degraded, thus causing increased flooding risks, climate change exacerbation, and possible health issues caused by decreased air and water quality. | Downstream | All time horizons
S1-Collective bargaining, including rate of workers covered by collective agreements | Actual Positive impact | The existence of a collective bargaining agreement ensures that employees benefit from consistent and transparent employment conditions, including fair and adequate wages, which contributes to job security and strengthens trust in the organization. | Own operations | Short-term
S1-Work-life balance | Actual Positive impact | BCR Group fosters a good balance between career and personal life through its @Valued at BCR initiative which positively impacts the standard of living and satisfaction of employees. By focusing on the physical and mental health of employees BCR Group continuously expands its health offerings to ensure access to quality medical support. | Own operations | Short-term
S1 - Gender equality and equal pay for work of equal value | Negative impact* | The current gender pay gap at BCR Group disadvantages the affected employees. | Own operations | Short to Medium term
S1-Training and skills development | Opportunity | Initiatives like BCR Academies, Școala de Cariere (to prepare young talent for labor market), and the Learning Hub (internal training hub) help attract young talent, improve employee capabilities, and reduce turnover-related costs. | Own operations | Medium to Long-term
S1-Diversity | Potential Positive impact | Diversity initiatives at BCR Group have a positive impact on employees by fostering an inclusive corporate culture. These efforts create an open environment where acceptance and support are prioritized, allowing all employees to feel valued and empowered. | Own operations | Short-term
S3 - Financial literacy (entity specific) | Positive impact* | Through national programs such as ‘Școala de Bani’ and ‘Flip’, BCR Group provides equitable access to financial education for every segment of society – including underserved and rural communities. By bridging these gaps, we are driving measurable progress in financial literacy, autonomy, and long-term financial well-being for every workshop participant. | Own operations | All time horizons
S4-Financial Health (entity specific) | Potential Positive impact | Through personalized financial health tools such as the Financial Coach in George and CRM-driven advisory services, BCR Group supports clients in improving their financial resilience, budgeting, and long-term planning. | Downstream | Medium to Long-term
Opportunity | By promoting customer financial health, BCR Group strengthens satisfaction, loyalty, and its own market performance. | Downstream | Medium-term
S4-Privacy | Risk | Cyberattacks and data breaches can erode customer trust, damage BCR Group’s reputation, and trigger legal penalties under regulations such as the GDPR. | Own operations | Short to Medium -term
S4-Access to products and services | Positive impact* | By ensuring that all banking products and services are accessible to socially vulnerable people (e.g. people with disabilities and the elderly), BCR promotes their autonomy, social and professional integration and active participation in community life. | Downstream | All time horizons
G1 – Corporate culture | Potential Positive impact | BCR Group has a positive corporate culture, promotes a safe, transparent and ethical environment thus ensuring healthy working environment and can increase employee satisfaction. | Own operations | Short-term
G1-Protection of whistle-blowers | Risk | The absence of effective whistle-blower protection and channels, or failure to implement whistle-blowing policies and procedures can lead to potential loss of profits, regulatory violations and reputational damage. | Own operations | Long-term
G1-Corruption and bribery Prevention and detection including training | Risk | Failure to ensure adequate awareness, control, and monitoring of corruption and bribery risks may lead to undetected incidents involving employees and that can expose BCR Group to financial penalties, legal costs, and reputational harm. | Own operations | Long-term

*In line with the methodology applied for the DMA, if not otherwise indicated, the short-term impact is actual, whilst for medium and long time horizons the impact is potential.
For entity-specific topics, BCR Group follows the same disclosure requirements as prescribed by the respective ESRS for
sustainability matters. Therefore, disclosures for entity-specific topics include information regarding policies, actions, targets and
metrics, if available.
As described in IRO-1, the process for evaluating the IROs was adjusted compared to last year. While no significant changes were
identified in BCR Group’s strategy or business model compared to the prior year, the DMA process reflects either methodological
refinements (granularity, traceability, assessment per each time horizon) or reassessments based on updated information, which
may lead to certain IROs no longer being considered material.
These refinements were driven by enhanced internal data availability and the need to better reflect where impacts, risks and
opportunities (IROs) arise across the value chain, rather than by changes in strategic direction.
Current-year refinements
— Value chain disaggregation: IROs were assessed separately for Upstream and Own operations. Consequently, the number of
material IROs increased versus prior year due to higher granularity (e.g. E1 related IROs).
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— Portfolio analysis: integrated as a mandatory DMA input to support identification and substantiation of IROs linked to relevant
portfolios (e.g., credit risk portfolio).
— Enhanced scoring & engagement: more granular scoring across time horizons, updated definitions for positive impacts which
triggered the re-assessment for some of the impacts identified in 2024, and broader screening for potential human rights
impacts.
Accordingly, several refinements and modifications were made in the course of the assessment, resulting from increased guidance
and benchmarking in 2025. These change s are outlined below.
E1 - Climate change mitigation
For 'E1 - Climate Change Mitigation', the positive impact of providing transition finance and green financing was reassessed as not
material considering that largely such impact originates from financings related to the energy sector. To enhance the clarity of
reporting the approach was refined as to connect this impact to the energy topic only.
E4 - Biodiversity and ecosystems
For "E4 - Impacts on the extent and condition of ecosystems Examples: land degradation; desertification; soil sealing" the risk
related to stricter regulations which could entail a decrease of financing volumes identified in last year's assessment was
reevaluated as not material. This change reflects evolving external context (i.e. status of implementation of the EU Biodiversity
Strategy 2030, the EU Soil Strategy for 2030 and subsequent regulations, as well as ESRS modifications) which reduced the assessed
likelihood and/or magnitude compared to the prior year scoring. Even if the financial effects are no longer considered material, the
negative impact on soil sealing is still recognised as material.
S1 - Own workforce
For "S1 - Health and safety" the positive impact identified last year is no longer presented separately under the health and safety
topic providing that the initiatives connected to this topic largely overlap with our work - life balance related actions. An additional
negative impact was newly identified in this year's assessment for "Gender equality and equal pay for work of equal value".
S3 - Affected communities (Financial literacy - entity specific)
While no IROs were assessed as material for S3 - "Affected communities" last year, a positive impact deriving from the entity-
specific topic "Financial health & financial literacy" in the prior assessment was determined as material in this year evaluation and
relevant to the affected communities. The material entity-specific topic of "Financial health and financial literacy" from 2024 has
this year been split into two, recognizing the positive impact separately for the respective affected stakeholder groups. Thus,
financial literacy positive impact is presented under "S3 - Affected Communities", whilst the financial health positive impact
continues to be connected to "S4 - Consumers and end users".
S4 - Consumers and end-users
For 'S4 - Consumers and End Users', the positive impact related to "Privacy" is no longer assessed as material for S4 this year in line
with the updated definition for positive impacts.
G1 - Business Conduct
For 'G1 - Business Conduct', last year material positive impacts were identified for both "Protection of Whistleblowers" and
"Corruption and Bribery – Prevention and Detection, including Training". In this year’s assessment, both topics are instead assessed
as long term material risks mainly based on the updated definition for positive impacts.
After conducting the materiality assessment, the material IROs were evaluated to understand their potential impact on, or the need
to adjust, BCR Group’s business model, value chain and strategy. Currently, no changes to BCR Group’s business model based on
the material IROs have been made. However due to the important role that these IROs play for BCR Group, any potential impacts
on strategy and business are currently being reviewed and will be adjusted as appropriate.
As risk management is a core element in the Bank’s business model and sustainability risks are part of the Bank’s processes and are
assessed in line with other risk types, both sustainability risks and opportunities are integrated into the BCR’s other management
processes. Information regarding the methodology of considering ESG risks in the existing risk appetite is provided in Note 28
Credit risk, ESG Risk Management in the Consolidated and Separate Financial Statements. For the current and anticipated effects
of material risks, as well as on the resilience of the strategy and business model, more details are provided in chapter 'E1 SBM-3
Material impacts, risks, and opportunities and their interaction with strategy and business model' and Note 28 in the Consolidated
and Separate Financial Statements.
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12.1.4 Impact, risk and opportunity management
IRO-1 – DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL
IMPACTS, RISKS AND OPPORTUNITIES
BCR Group has performed a Double Materiality Assessment in accordance with the requirements of ESRS 1 and ESRS 2 for the
development of the 2025 Consolidated Sustainability Statement.
Consequently, the performed assessment covered the identification and assessment of impacts, risks and opportunities (IROs)
under the IFRS consolidation scope. Furthermore, other participations, which are not fully consolidated, were analysed regarding
potential IROs and operational control. The process also focused on the identification and assessment of IROs in the upstream and
downstream value chain of BCR Group. The outcomes of the assessment are the basis for the scope of topics reported and data
points included in this statement.
In 2025, the DMA process was conducted for the second time at BCR Group level. It differs from the materiality assessment
performed last year by introducing Portfolio Analysis to identify impacts from the credit risk portfolio, adjusting the scoring process
and enhancing stakeholder engagement through cross-functional scoring teams, which scored each time horizon separately
considering all parts of the value chain (upstream, own operations and downstream). The following update of the DMA is planned
to be conducted for the next reporting cycle, as to consider the potential amendments introduced by the simplified ESRS.
Identification of impacts, risks and opportunities
The Double Materiality Assessment (DMA) was performed under the lead of the Sustainability Department, considering inputs
from Risk Management, Strategy, Investor Relations, Group People and Culture, Procurement, Corporates, Retail, Property
Management, Compliance, Accounting and BCR Group Subsidiaries. The process included across-functional collaboration to
ensure comprehensive coverage of potential impacts, risks, and opportunities across own operations and business relationships
(upstream and downstream).
Double materiality assessment process
The process to identify the material sustainability matters was conducted in four steps. First, a relevance analysis of all
sustainability matters listed in ESRS 1 Appendix A AR 16 was conducted, enriched with entity-specific topics such as financial
health and financial literacy. A topic may be relevant if it is connected to the Group’s core business, strategic priorities, or value
chain. Relevance can also arise from the extent to which stakeholders are affected. If a sustainability matter was assessed as
relevant, the respective IROs assigned to the topic were subsequently subject to an impact and financial materiality assessment,
based on severity, likelihood, and magnitude criteria in line with ESRS 1 sections 3.4 and 3.5. The final step was to validate and
approve the outcome of the DMA, where the final scoring per impact, risk and opportunity (IRO) was quality assured by an Expert
Jury comprising leadership representatives overseeing various relevant areas. Subsequent to these steps, the results were visualized
in a matrix, summarized in an executive presentation and approved by BCR’s Management Board.
To gain a deep understanding of the circumstances BCR Group is operating in, various data was collected for the identification of
IROs. Inputs for the DMA included:
— guidance documents and peer benchmarking;
— analysis of the BCR strategy, including sector financing strategies, and BCR Group related business activities;
— e ngagement with internal experts and use of studies;
— BCR Risk Materiality Assessment results, including the Business Environment Scan and the ESG Factor Heatmap;
— mapping of sectoral credit exposures and financed emissions (Downstream);
— expenditures for purchased goods and services (Upstream);
— consultation with the Internal Expert Jury.
Portfolio Analysis
The results of the portfolio analysis also inform the identification of impacts in the downstream value chain and their materiality
status. Using an Excel-based tool considering input data by UNEP FI and ENCORE, BCR Group assessed ESG impacts across its
portfolio and linked them to ESRS requirements for the DMA. To run the analysis, BCR Group provided portfolio data, including
loan details, exposure values, associated industries using NACE codes and countries of operation. Each loan is then assigned ESG
impact scores based on its sector and country, which are weighted by exposure to create a portfolio-wide ESG impact profile and
53
aggregated by sector to show which industries contribute most to ESG impacts. UNEP FI impact categories are mapped to ESRS
sub-topics and topics are flagged as relevant if their impact score exceeded the 90th percentile threshold. These flagged topics were
then reviewed and validated by internal experts to determine whether they represent material impacts for BCR Group. The
portfolio analysis replaces the previous manual assessment approach by establishing materiality through a structured, data-driven
process.
Furthermore, to assure the completeness and accuracy of the DMA within BCR Group, ongoing communication with the
subsidiaries consolidated under IFRS and with Erste Group was necessary. This was to identify potentially relevant IROs at both
the group and entity levels.
This was achieved by:
— weekly calls with Erste Group and other subsidiaries of Erste Group;
— ad hoc calls or scheduled calls on a 1:1 basis (BCR Group and subsidiaries);
— workshops with internal experts to gain insights on potential impacts, risks and opportunities and perform their assessment;
— integration of CSRD/DMA topics in the quarterly meetings of the Sustainability, Diversity and Inclusion Committee;
— on-going e-mail exchange on the application of various topics related to the Double Materiality Assessment with internal
experts and the representatives of Erste Group DMA core team.
The outcome of the DMA is the list of material IROs that is shown in SBM-3 and lays the foundation for this report.
Stakeholder Engagement
The DMA was informed by internal experts from various business units, such as People & Culture, Compliance, Strategic Risk,
Data Protection, Legal, Property Management etc. BCR Group had no other direct consultations with affected stakeholders in the
DMA. The assessment of the IROs was conducted by the Sustainability Department with the support of the Accounting team based
on internal expert dialogues and workshops. During these workshops the internal experts of BCR provided consolidated inputs
following their engagement with various groups of stakeholders as part of their regular business activities, and thus were
considered in the assessment. Results were validated by the Internal Expert Jury, who is comprised by executive members in
various areas of the Bank.
Value Chain Assessment
For the DMA, BCR Group aimed to reflect the interests and views of affected stakeholders as well as users of the Consolidated
Sustainability Statement as described in "SBM-2 Interests and views of stakeholders". Moreover, for the identification and
assessment of IROs, special consideration was given to the upstream and downstream value chain to ensure completeness of the
relevant IROs. In this context, BCR Group analysed the flow of activities, processes and value creation within the organisation.
Further information on BCR Group’s value chain composition and the respective implications on the DMA can be found in chapter
'SBM-1 Strategy, business model and value chain'.
Impact Materiality Assessment
The assessment was based on the following central assumptions:
— The value chain relevance and the time horizon of their assumed occurrence were identified per impact;
— Impacts were defined as either positive or negative. If multiple but deviating impacts (i.e. positive and negative) were identified
as concerns a sustainability matter, each impact was evaluated separately;
— For a sustainability matter to be deemed as material, only one material impact is sufficient, regardless of the count of additional
immaterial impacts, its state as actual or potential, its allocated time horizon or value chain relevance;
— The severity and the likelihood were evaluated for each impact. An impact is classified as actual if it has already occurred and is
therefore observable or verifiable in the present. Conversely, an impact is classified as potential if its occurrence is only possible
in the future and thus based solely on a plausible expectation or projected development. Whether an impact is to be classified as
actual or potential is determined by the responsible internal experts. For actual impacts the likelihood was consistently set to
100%. For potential impacts, the likelihood was assessed on a scale from 0 to 5 with each scale having a corresponding
probability weight;
— The scoring of severity included the three parameters of scale, scope and irremediability (only for negative impacts). Each
evaluation parameter was assessed individually on a scale from 0 to 5. Their values were averaged, and the resulting score was
then multiplied by the likelihood;
— Subsequent impacts, relating to positive impacts which trigger or are likely to trigger a negative impact, and human rights
impacts were considered. For human rights impacts severity took precedence over likelihood;
54
— Impacts with a total score higher than 2.5 on a scale from 0 to 5 were considered material. Using this as the threshold ensures
that only impacts with at least an upper-medium level of severity are classified as material. This approach prevents low-severity
impacts from being considered material, maintaining focus on the most significant topics;
— Impact evaluations were conducted per time horizon by cross-functional scoring teams setting scores based on evidence and/or
expert opinion;
— The material impacts were aligned with the outcome of the financial materiality assessment for sustainability matters whereby
financial materiality would be triggered by impact materiality;
— The final scoring per impact was quality assured by the Expert Jury.
The process carried out did not comprise an explicit step of engaging with external stakeholders. Information concerning affected
stakeholders was considered implicitly via the above-mentioned in-house experts and their regular exchanges with external parties
(i.e. customers, NGOs, rating agencies, investors). For more information on stakeholder groups and engagement, please refer to
chapter 'SBM-2 Interests and views of stakeholders'.
Impacts relating to E1 Climate change
The whole value chain was considered and assessed in the context of climate change. As described in section ‘SBM-1 - Strategy,
business model and value chain’, some sectors with high emissions, such as IT-services, are part of BCR Group’s upstream value
chain. These were assessed separately of emissions from BCR Group’s own operations. The assessment was carried out in
alignment with the process outlined above, incorporating both the Portfolio Analysis and internal expert evaluations. These
impacts were evaluated as material, especially due to the high score considering the scope of CO2 emissions, which were assessed
to have a global impact, as well as the irremediability, as CO2 emissions are difficult to be reversed.
However, a major part of BCR Group’s overall emissions stem from the financed emissions in the Bank’s portfolio, which are part
of its downstream value chain. As such, these are closely monitored. During BCR Group’s DMA, the current total carbon footprint
based on end of year 2024 values was used as input. BCR Group is calculating and reporting GHG emissions for its upstream and
own operations (Scope 1, 2 and 3), as well as of financed portfolio (financed Scope 3 emissions categories 13 and 15). The used
methodologies are in line with the GHG Protocol Corporate Accounting and Reporting Standard and the PCAF methodology.
Details regarding the computations and calculation scope can be found in chapter 'E1-6 - Gross Scopes 1,2,3 and Total GHG
Emissions' of this statement.
For the climate change mitigation and energy topics, negative impacts were identified, which, due to their actual and global nature,
received the highest score and hence were deemed material. The negative impacts in the subtopic of energy are on the one hand
driven by the energy mix consumed by BCR Group, directly or in its' upstream value chain, leading to CO2 emissions (please also
refer to chapter 'E1-5 - Energy consumption and mix' for details) and on the other hand, its financing of energy-intensive
companies.
BCR Group already finances renewable energy projects and energy transmission and distribution infrastructure projects,
supporting the transition to a low carbon economy and the energy security of the region. It does so based on its Responsible
Financing Policy, which sets out financing exclusions for high emitting sectors, as well as the Sustainable Finance Methodology
which applies to pursue targets in sustainable financing. Based on the actual and global nature this positive portfolio related impact
was assessed as material.
Lastly, concerning the sub-topic of climate change adaptation, the financing of adaptation solutions was assessed to be very likely
in the focus of BCR Group’s future financing strategy, but we have not identified significant impacts on short- and medium-term
stemming from this.
Impacts relating to E4 Biodiversity and ecosystems
In the upstream value chain, no material impacts in connection to biodiversity and ecosystems were identified. Nevertheless, BCR
Group is aware that biodiversity and ecosystems is a topic of increasing importance and is closely monitoring all parts of its value
chain to ensure that potential impacts are adequately managed.
BCR Group has no sites (own/leased premises) located in or at the limit of biodiversity-sensitive areas and no material impacts
were identified related to BCR Group’s own operations affecting any biodiversity-sensitive areas.
Concerning downstream impacts, BCR Group’s focus on financing real estate, renewables, development of new production
facilities and infrastructure projects was assessed to have an actual short term negative impact on biodiversity, as soil is sealed and
land is degraded, causing increased flooding risks, further contributing to climate change and possible health issues due to
decreased air and water quality. This might also occur on medium and long term, thus potential negative impacts were defined and
evaluated as material for these time horizons as well. Potential other impact drivers, such as dependencies on ecosystems for
55
certain financed sectors (such as agriculture), have been evaluated, but were not considered material due to the comparatively low
exposure share.
The evaluation was based on expert judgment and supported by portfolio analysis data using ENCORE and UNEP FI data.
Information with regards to affected communities are covered through the aforementioned data and portfolio analysis. The
material potential impacts of biodiversity and ecosystem matters are restricted to the financed portfolio. Based on the DMA results
additional biodiversity mitigation measures to complement what it is already addressed through the BCR Group Responsible
Financing Policy have not been considered necessary.
Impacts relating to S1 Own Workforce
BCR Group places great importance on the development and support of its own employees, as they are a key factor in the
organization's success. Topics such as work-life balance, collective bargaining, gender equality and equal pay for work of equal
value, as well as diversity were identified as material for BCR Group. A comprehensive analysis was conducted, considering
existing People & Culture strategies and internal policies. The assessment was based on the evaluations of internal experts and the
results of existing employee surveys. Collective bargaining and work-life balance were given the highest scores.
Further details can be found in the table in the chapter ‘SBM-3 - Material impacts, risks and opportunities and their interaction
with strategy and business model’.
Impacts relating to S3 Affected Communities (Financial literacy)
BCR Group interacts in many ways with surrounding communities, which is why a positive impact was identified and the topic of
Financial Literacy was classified as material. The assessment was aligned with the strategy pillar, expert evaluations and
stakeholder feedback. Key impacts include ensuring access to financial education for financially vulnerable people and promoting
financial inclusion.
Further details can b e found in the table in the chapter "SBM - 3 Material impacts, risks and opportunities and their interaction
with strategy and business model".
Impacts relating to S4 Consumers and End Users
As a client facing organization, BCR Group places great importance on its responsibility towards customers and end users. Topics
such as financial health, privacy and access to products and services (social banking) were identified as material to BCR Group. The
assessment focused on the direct impact on customers and end users, with a strong emphasis on the overall customer experience
and the protection of their interests. A detailed assessment was conducted, based on existing customer policies and data protection
measures. This assessment was based on evaluations of internal experts and feedback from customer satisfaction surveys. Privacy
and the entity specific topic financial health were given high priority.
Further details can be found in the table in the chapter ‘SBM-3 - Material impacts, risks and opportunities and their interaction
with strategy and business model’.
Impacts relating to G1 Business conduct
All G1 subtopics were generally deemed as relevant for BCR Group's own operations. Political engagement was not considered
relevant providing that BCR Group is a non-political organization, and it does not support the engagement of its employee in
political leadership.
The analysis of the governance related topics was performed taking into account BCR Group’s existing governance setup and
compliance status as well as its role as a tightly supervised and regulated financial institution and financial services provider. The
evaluation of the impacts was performed based on BCR Group’s internal expert judgment, leading to identification of one material
positive impact in connection to corporate culture (see table in 'SBM-3 - Material impacts, risks and opportunities and their
interaction with strategy and business model’).
Financial Materiality Assessment
The financial materiality assessment was based on the following central assumptions:
— For the assessment of financial materiality, risks and opportunities arising from future legislation, reputational considerations
and related uncertainties are taken into account. The process is linked to existing internal risk assessments, and BCR Group's
strategic positioning to capture emerging business opportunities. As part of this process, internal experts were briefed on the
methodological requirements of the DMA, including the interdependences between impact and financial materiality, with
particular emphasis on recognising financial materiality that results from impacts and dependencies.
— The identification and evaluation of risks in the DMA was also based on information stemming out of BCR Group’s annual risk
materiality assessment, in which ESG risks and risk drivers were already included and evaluated.
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— The value chain relevance and the time horizon of their assumed occurrence were identified per risk and opportunity.
— For a sustainability matter to be deemed as material, only one material risk or opportunity is sufficient, regardless of the count
of additional immaterial risks or opportunities, its allocated time horizon or value chain relevance.
— Identified risks and opportunities were evaluated in terms of the magnitude of their financial effect on a scale from 0-3 and
subsequently multiplied by the probability of occurrence on a scale from 0-5, with each scale having a corresponding probability
weight.
— Risks and opportunities with a total score above 1.5 on a scale from 0 to 3 were considered material. Using this as the threshold
ensures that only risks and opportunities with at least medium scale of magnitude of financial effect are classified as material.
This approach prevents low-scaled risks and opportunities from being considered material, maintaining focus on the most
significant topics.
— Risks and opportunities were defined and evaluated per time horizon separately by cross-functional scoring teams (i.e.
Operational Risk Management, ICAAP Team, Strategy, Business – Retail and Corporates, Compliance) setting scores based on
evidence and/or expert opinion. The score was set individually per risk or opportunity.
— The final scoring per risk and opportunity was quality assured by an Internal Expert Jury.
Risk Materiality Assessment (RMA)
The Business Environment Scan (BES), performed at Erste Group level, identifies climate and environmental risks and
opportunities, providing the foundation for the Risk Materiality Assessment (RMA) to narrow down relevant topics. While RMA
provides the foundation for identifying material environmental risks, environmental related opportunities are derived directly from
the BES. Identified risks are then analysed by internal experts to determine physical and transition risks, which are then assessed
for materiality across various risk types (credit, market, operational, strategic, reputational, liquidity) and time horizons (short-,
medium-, long-term) and are mapped to the ESRS long-list topics, either linked to existing DMA risks or added as new ones. If any
of those risks is material, the entire associated risk or topic is deemed material. Furthermore, for risks not captured in the RMA,
scoring is conducted using an internal ESG Factor Heatmap based on portfolio mapping results. This approach represents an
enhancement in defining materiality through a systematic framework.
RISKS AND OPPORTUNITIES RELATING TO E1 CLIMATE CHANGE
Physical risks
For the means of the DMA physical risks are identified and assessed under the subtopic of climate change adaptation. Physical
risks can arise at various locations throughout the value chain, such as:
— BCR’s own fixed assets;
— fixed assets of suppliers (e.g. suppliers of data center services);
— fixed assets of customers and as a specific category thereof;
— those customer fixed assets that serve as collateral.
Due to its essential importance for BCR Group and its crediting line of business, the assessment focused on the financed portfolio
and the transmission channels leading to credit risk. A transmission channel is the mechanism through which a physical risk (e.g.,
a flood) translates into a financial risk for the bank (e.g., credit risk). While physical risks also affect the the upstream value chain
and BCR Group’s own assets, their impact was assessed as minor compared to the downstream value chain. Acute physical risks
can damage collateral, and together with chronic physical risks can impair the viability of business models. These dynamics act as a
transmission channel that ultimately materialises as credit risk for BCR Group.
The assessment of the portfolio was guided by multiple inputs. The results of BCR’s risk materiality assessment, taking into account
the results of the comprehensive stress-testing exercise performed at Erste Group level, including a flood risk scenario, as well as
the results of a portfolio screening based on MunichRe Location Risk Intelligence data were used as the basis for the materiality
assessment.
Transition risks and opportunities
Due to its essential importance to BCR Group’s credit business segment, the focus of the identification and assessment of transition
risks and opportunities was on the financed portfolio and the impact on credit risk, as transition events such as policy changes can
impact the viability and profitability of customers’ business models. While risks and opportunities can arise in the upstream value
chain and BCR Group’s own operations, they have been assessed to be minor compared with the financed portfolio.
The evaluation of transition risks in the portfolio is taking into account the current distribution of the portfolio based on its carbon-
intensity and the EPC distribution across the commercial and residential real estate portfolio. The rationale applied in this case was
that the higher the current GHG emissions, the more investments and costs are likely to be incurred for reducing emissions or
improving energy efficiency, which can have a negative impact on credit quality.
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The current portfolio state in relation to the above-mentioned indicators led to material transition risks in both climate change
mitigation and energy – the latter focusing especially on potential decreased profitability and liquidity shortage in case of increasing
costs for compliance with climate change related regulations and related default risk.
Providing that the decarbonisation of the portfolio of BCR Group, as well as of Erste Group which is committed to Paris Agreement
and limiting global temperature increase to 1.5 0 C, will be a long-term exercise, transition risks resulting out of the financed
portfolio were also assessed to be prominent over short, medium and long-term. For further explanations, please refer to chapter
'E1 SBM-3 - Material impacts, risks, and opportunities and their interaction with strategy and business model'.
The evaluation of transition opportunities is taking into account the current distribution of the portfolio and the potential financial
benefits of identified opportunities. This includes opportunities from financing companies investing into the decarbonisation of
their own business models and clients offering climate change adaptation solutions, for example in the real estate sector.
RISKS AND OPPORTUNITIES RELATING TO G1 BUSINESS CONDUCT
Potential Risks and opportunities related to Business conduct are mostly focused on BCR Group’s own operations. BCR Group is
operating in a highly regulated field, notably due to the banking activities it conducts, where the regulations aim to reduce potential
risks both for customers as well as the organization itself. A lack of regulatory compliance is already assessed as part of other risk
factors, which are part of the financial report. In addition, during the DMA process BCR Group has identified additional material
risks connected to the protection of whistleblowers and prevention and detection including training for the long term horizon.
Considering the actions already implemented these risks have a very low likelihood to manifest on short and medium term.
However, for the long term horizon additional resources might be further allocated in order to adapt to new challenges as to be able
maintain the practices currently in place.
Concerning the identified opportunities, their respective potential positive financial effects were evaluated to be low based on BCR
Group internal expert judgment, leading to none of them being deemed material.
Non-material sustainability matters
BCR Group examined various topics, including pollution, water and marine resources, resource use and circular economy. In all
these areas, no material IROs were identified. The assessment considered BCR Group’s business model and its upstream and
downstream value chain. The assessments indicated that the potential IROs were considered minor and non-material due to BCR
Group’s non-manufacturing business model and the structure of its portfolio. Although direct consultations with affected
communities or other stakeholders were not conducted, the BCR Group incorporated their input into the DMA through internal
experts who participated in workshops, as detailed under Stakeholder Engagement section above.
E2 Pollution
As with any other sustainability matters covered by ESRS, the respective AR 16 sub-topics, particularly concerning the pollution of
air, water, and soil, were evaluated separately. Any other sub-topics related to pollution were excluded from the assessment, as they
were either already considered as part of the assessment related to the pollution of air, water, and soil, or they lacked general
relevance based on the business conducted by BCR Group and its value chain.
The identification and evaluation of IROs related to the subtopics of pollution of air, water, and soil were restricted to the financed
portfolio. BCR Group’s own operations and upstream value chain, as a financial services provider and private pension funds
administrator, were deemed to have no significant connection to the pollution of air, water, and soil, especially when compared to
the pollution-related impacts, risks, and opportunities of other industries.
A portfolio analysis was performed to identify impacts linked to the typical risk profiles of the industries (see chapter 'IRO-1 –
Impact Materiality Assessment' for further details). The industries with the highest impacts were identified as agriculture, mining,
manufacturing, construction and transportation. Due to the high standards and strict regulations on pollution matters that are in
place to limit impacts on the environment within these industries, no material impact was determined. Risks and opportunities
relating to pollution were analyzed based on the current business strategy and portfolio structure in combination with the results of
BCR Group and Erste Group risk materiality assessments and underlying ESG Factor Heatmap. No material risks or opportunities
were identified, primarily because the industries evaluated as high-risk within the scope of pollution matters had a low exposure
share.
Regarding opportunities, the financing of and investments in clients developing innovative solutions that minimize, or remedy air
pollution were considered possible within BCR Group’s business focus. However, based on internal expert judgment and the
expected financial effect, these opportunities were assessed as not material.
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E3 Water and marine resources
The AR 16 sub-sub-topics concerning water consumption, withdrawals, and discharges, were evaluated separately during the DMA
process. Any other sub-sub-topics related to marine resources were excluded from the assessment due to their lack of general
relevance to BCR Group's business activities.
Potential impacts relating to water and marine resources in the upstream value chain, such as water cooling connected to IT
services were assessed. A portfolio analysis was used to identify impact drivers in the downstream value chain. The impacts, when
weighted by exposure to the relevant industries, did not indicate materiality. The assessment of risks and opportunities was
conducted based on the current business strategy and portfolio structure, supplemented by insights from BCR Group’s risk
materiality assessment and its ESG Factor Heatmap. No material risks or opportunities were identified, primarily because the
industries evaluated as high-risk within the scope of water and marine resource matters had a low exposure share.
Regarding opportunities, the financing of and investments in clients focused on improving water efficiency such as water
recirculation in close loop systems, the treatment and recycling of greywater or rainwater, or on developing new products aimed at
generating less wastewater or requiring less water for the manufacturing process, were considered possible within BCR Group’s
business focus. However, based on internal expert judgment and the expected financial effect, these opportunities were evaluated
as immaterial.
In terms of impacts, multiple positive and negative potential impacts were identified based on BCR Group's portfolio. However,
none of these impacts were attributed sufficiently high evaluations in the assessment dimensions to be considered material.
E5 Resource use and circular economy
The DMA considered the AR-16 sub-topics related to resource use and circular economy similarly to the topics from any other
ESRS standards. Thus, resource inflows, outflows, and waste, were evaluated separately.
BCR Group's own operations and upstream value chain were assessed together, along with impacts related to the financed
portfolio, using a portfolio analysis. The highest impacts were identified in industries such as agriculture, mining, manufacturing,
construction and real estate. Following high standards and strict regulations on resource use and circular economy matters that are
in place to limit impacts on the environment within these industries, no material impact was determined. The assessment of risks
and opportunities associated with resource use and the circular economy was carried out based on the current business strategy
and portfolio structure, complemented by insights from BCR and Erste Group’s risk materiality assessments and its ESG sector risk
Factor Heatmap. No material risks or opportunities were identified, primarily because the exposure share of industries affected by
the main risk driver of a potential ban of environmentally damaging materials or chemicals is not significant.
IRO-2 – DISCLOSURE REQUIREMENTS IN ESRS COVERED BY THE UNDERTAKING’S
CONSOLIDATED SUSTAINABILITY STATEMENT
List of disclosure requirements
After the completion of the DMA, the respective material sustainability matters were allocated to the relevant disclosure
requirements and data points using the EFRAG Guidance. Additionally, BCR Group discloses entity specific information following
the policy, action and target structure for the sustainability matters of financial literacy and financial health. Metrics were disclosed
where required. To determine the materiality of information to be disclosed, BCR Group applied the approach indicated in
Appendix E of the ESRS 1 standard. In the case of metrics for which not all the data points of a Disclosure Requirement were
needed to meet the objective of that requirement, these were omitted, and argumentation of the rationale was documented and
presented to the Management Board.
The list of disclosure requirements and their location in the statement can be found below.

| List of disclosure requirements | Page
General information
BP-1 | General basis for preparation of the Consolidated Sustainability Statement | 34
BP-2 | Disclosures in relation to specific circumstances | 34
GOV-1 | The role of the administrative, management and supervisory bodies | 37
GOV-2 | Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | 39
GOV-3 | Integration of sustainability-related performance in incentive schemes | 41
GOV-4 | Statement on due diligence | 42
GOV-5 | Risk management and internal controls over Sustainability Statement reporting | 43

59

SBM-1 | Strategy, business model and value chain | 45
SBM-2 | Interests and views of stakeholders | 47
SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 49
IRO-1 | Description of the process to identify and assess material impacts, risks and opportunities | 52
IRO-2 | Disclosure Requirements in ESRS covered by the undertaking’s Consolidated Sustainability Statement | 58
Climate change
E1 SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 94
E1-1 | Transition plan | 98
E1-2 | Policies and transition measures for climate change mitigation and adaptation | 99
E1-3 | Actions and resources in relation to climate change policies | 104
E1-4 | Targets related to climate change mitigation and adaptation | 108
E1-5 | Energy consumption and mix | 115
E1-6 | Gross Scopes 1, 2, 3 and Total GHG emissions | 116
Biodiversity and ecosystems
E4 SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 126
E4-1 | Transition plan and consideration of biodiversity and ecosystems in strategy and business model | 126
E4-2 | Policies related to biodiversity and ecosystems | 127
E4-3 | Actions and resources related to biodiversity and ecosystems | 128
E4-4 | Targets related to biodiversity and ecosystems | 128
E4-5 | Impact metrics related to biodiversity and ecosystems change | 128
Own workforce
S1 SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 128
S1-1 | Policies related to own workforce | 130
S1-2 | Processes for engaging with own workforce and workers’ representatives about impacts | 134
S1-3 | Processes to remediate negative impacts and channels for own workforce to raise concerns | 136
S1-4 | Taking action on material impacts on own workforce and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | 138
S1-5 | Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 142
S1-6 | Characteristics of the undertaking’s employees | 142
S1-7 | Characteristics of non-employees in the undertaking’s own workforce | 143
S1-8 | Collective bargaining coverage and social dialogue | 144
S1-9 | Diversity metrics | 144
S1-12 | Persons with disabilities | 145
S1-13 | Training and skills development metrics | 145
S1-15 | Work-life balance metrics | 146
S1-16 | Remuneration metrics (pay gap and total remuneration) | 146
S1-17 | Incidents, complaints and severe human rights impacts | 147
Affected communities
S3-SBM3 | Material impact and its interaction with strategy and business model | 148
S3-1 | Policies related to affected communities | 148
S3-2 | Process for engaging with affected communities about impacts | 148
S3-3 | Processes to remediate negative impacts and channels for affected communities to raise concerns | 149
S3-4 | Taking action on material impacts on affected communities and managing the effectiveness of those actions | 149
S3-5 | Targets related to advancing positive impacts | 150
Consumers and end-users
S4 SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 152
S4-1 | Policies related to consumers and end-users | 153
S4-2 | Processes for engaging with consumers and end-users about impacts | 156
S4-3 | Processes to remediate negative impacts and channels for consumers and end-users to raise concerns | 157
S4-4 | Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users and effectiveness of those actions | 158
S4-5 | Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 161
Business conduct
G1-1 | Business conduct policies and corporate culture | 164
G1-3 | Prevention and detection of corruption and bribery | 167
G1-4 | Incidents of corruption or bribery | 168

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List of data points in cross-cutting and topical standards that derive from other EU legislation

Disclosure requirement and related data point | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Material / not material | Page reference
ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) | Indicator number 13 of Table #1 of Annex 1 |  | Commission Delegated Regulation (EU) 2020/1816 ( 27 ) , Annex II |  | Material | 37
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 37
ESRS 2 GOV-4 Statement on due diligence paragraph 30 | Indicator number 10 Table #3 of Annex 1 |  |  |  | Material | 42
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i | Indicators number 4 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 ( 28 ) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk | Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii | Indicator number 9 Table #2 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii | Indicator number 14 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1818 ( 29 ) , Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv |  |  | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 |  |  |  | Regulation (EU) 2021/1119, Article 2(1) | Material | 98
ESRS E1-1 Undertakings excluded from Paris- aligned Benchmarks paragraph 16 (g) |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g) and Article 12.2 |  | Material | 98
ESRS E1-4 GHG emission reduction targets paragraph 34 | Indicator number 4 Table #2 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 6 |  | Material | 108
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 | Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 |  |  |  | Material | 115
ESRS E1-5 Energy consumption and mix paragraph 37 | Indicator number 5 Table #1 of Annex 1 |  |  |  | Material | 115
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Indicator number 6 Table #1 of Annex 1 |  |  |  | Not material |

61

Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Material / not material | Page reference
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 | Indicators number 1 and 2 Table #1 of Annex 1 | Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) |  | Material | 116
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 | Indicators number 3 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 8(1) |  | Material | 116
ESRS E1-7 GHG removals and carbon credits paragraph 56 |  |  |  | Regulation (EU) 2021/1119, Article 2(1) | Not material |
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 |  |  | Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II |  | Material | Phase-in
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c) |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. |  |  | Material | Phase-in
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c) |  | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral |  |  | Material | Phase-in
ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 |  |  | Delegated Regulation (EU) 2020/1818, Annex II |  | Material | Phase-in
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 | Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E3-1 Water and marine resources paragraph 9 | Indicator number 7 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E3-1 Dedicated policy paragraph 13 | Indicator number 8 Table 2 of Annex 1 |  |  |  | Not material |
ESRS E3-1 Sustainable oceans and seas paragraph 14 | Indicator number 12 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E3-4 Total water recycled and reused paragraph 28 (c) | Indicator number 6.2 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E3-4 Total water consumption in m 3 per net revenue on own operations paragraph 29 | Indicator number 6.1 Table #2 of Annex 1 |  |  |  | Not material |

62

Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Material / not material | Page reference
ESRS 2- SBM 3 - E4 paragraph 16 (a) i | Indicator number 7 Table #1 of Annex 1 |  |  |  | Material | 126
ESRS 2- SBM 3 - E4 paragraph 16 (b) | Indicator number 10 Table #2 of Annex 1 |  |  |  | Material | 126
ESRS 2- SBM 3 - E4 paragraph 16 (c) | Indicator number 14 Table #2 of Annex 1 |  |  |  | Material | 126
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E4-2 Policies to address deforestation paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E5-5 Non-recycled waste paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 |  |  |  | Not material |
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 | Indicator number 9 Table #1 of Annex 1 |  |  |  | Not material |
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) | Indicator number 13 Table #3 of Annex 1 |  |  |  | Not material |
ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) | Indicator number 12 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S1-1 Human rights Policy commitments paragraph 20 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 |  |  |  | Material | 130
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 130
ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 | Indicator number 11 Table #3 of Annex 1 |  |  |  | Material | 130
ESRS S1-1 Workplace Accident Prevention Policy or management system paragraph 23 | Indicator number 1 Table #3 of Annex 1 |  |  |  | Material | 130
ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) | Indicator number 5 Table #3 of Annex 1 |  |  |  | Material | 136
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) | Indicator number 2 Table #3 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) | Indicator number 3 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) | Indicator number 12 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Material | 146
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) | Indicator number 8 Table #3 of Annex 1 |  |  |  | Material | 146
ESRS S1-17 Incidents of discrimination paragraph 103 (a) | Indicator number 7 Table #3 of Annex 1 |  |  |  | Material | 147
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a) | Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) |  | Material | 147
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) | Indicators number 12 and n. 13 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S2-1 Human rights Policy commitments paragraph 17 | Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 |  |  |  | Not material |

63

Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Material / not material | Page reference
ESRS S2-1 Policies related to value chain workers paragraph 18 | Indicator number 11 and n. 4 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S2-1Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 | Indicator number 10 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Not material |
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 |  |  | Delegated Regulation (EU) 2020/1816, Annex II |  | Not material |
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S3-1 Human rights Policy commitments paragraph 16 | Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 |  |  |  | Not material |
ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17 | Indicator number 10 Table #1 Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Not material |
ESRS S3-4 Human rights issues and incidents paragraph 36 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Not material |
ESRS S4-1 Policies related to consumers and end-users paragraph 16 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 |  |  |  | Material | 153
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 | Indicator number 10 Table #1 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |  | Material | 153
ESRS S4-4 Human rights issues and incidents paragraph 35 | Indicator number 14 Table #3 of Annex 1 |  |  |  | Material | 158
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) | Indicator number 15 Table #3 of Annex 1 |  |  |  | Material | 164
ESRS G1-1 Protection of whistleblowers paragraph 10 (d) | Indicator number 6 Table #3 of Annex 1 |  |  |  | Material | 164
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) | Indicator number 17 Table #3 of Annex 1 |  | Delegated Regulation (EU) 2020/1816, Annex II) |  | Material | 168
ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) | Indicator number 16 Table #3 of Annex 1 |  |  |  | Material | 168

3 However, for financial years beginning between 01 January and 31 December 2025, companies may still apply Delegated
Regulations (EU) 2021/2178, (EU) 2021/2139 and (EU) 2023/2486 in the versions applicable on 31 December 2025.
4 In Romania, the CSRD directive transposed locally by the Ministry of Finance, the National Bank of Romania and Romanian
Financial Supervisory Authority was subject to amendments to transpose the Omnibus' 'stop the clock' proposal, so that it
postpones CSRD reporting obligations by two years for affected companies:
—Order of the Ministry of Finance No. 1421/2025, published in the Official Gazette and in force since 22 August 2025;
—Order of the National Bank of Romania no. 2/2026 published in the Official Gazette no 107 / 10 February 2026.
64
12.2 Environmental information
12.2.1 EU Taxonomy Disclosures
Legal framework at EU level
The EU Commission’s Delegated Regulation (EU) 2026/73 (further referred to as 'revised EU Taxonomy DDA') amending the EU
Commission’s Delegated Regulation (EU) 2021/2178 (further referred to as 'unrevised EU Taxonomy DDA') as regards the
simplification of the content and presentation of information to be disclosed concerning environmentally sustainable activities
addresses the requirement of the EU Taxonomy’s Article 8 of Regulation (EU) 2020/852 on EU taxonomy ("EU Taxonomy"), by
specifying the accordingly revised content and presentation of information to be disclosed concerning environmentally sustainable
economic activities and specifying the accordingly revised methodology to comply with that disclosure obligation.
The revised EU Taxonomy DDA has been published in EU's Official Journal on 8th of January 2026, with applicability from 1st of
January 2026 for the financial year 2025( 3). The necessity of such a revision stem from the experience with the first year of reporting
by financial undertakings and the two consecutive years of reporting by non-financial undertakings, which was found to provide a
sufficient basis for the EU Commission ('EC') to introduce certain targeted simplification measures to streamline reporting
obligations and thereby reduce administrative burden on reporting undertakings, while not losing relevant and material data from
the Taxonomy reporting framework. These measures, in a draft form open for comments, were issued in February 2025, as part of
the so-called 'Sustainability Omnibus Proposal' (hereafter referred to as 'Omnibus'), then further refined and issued on the 4th of
July 2025 in the form of an EC Delegated Regulation. In parallel, Omnibus 'stop the clock' proposal - that is, applying year-end
2024's scope of undertakings subject to CSRD (hence: to EU Taxonomy disclosures as well) until further re-assessment of scope's
previously enacted gradual widening across the years 2025-2028 - was fast-tracked for immediate enacting at EU level. In Romania,
this was as well adopted in 2025 as an amendment to the legislation transposing CSRD ( 4).
As mandated by its Article 4, BCR Group initially applies the revised EU Taxonomy DDA for the reporting year ending on 31
December 2025. Therefore, Group's EU Taxonomy disclosures as of 31 December 2025 hereafter included, as well as the number,
the content and the structure of the related templates have been adapted to fully reflect the requirements of the revised EU
Taxonomy DDA, notably the amendments to the Annex VI to the unrevised EU Taxonomy DDA (providing the updated layouts of
the currently required templates 0-5) and the deletion of the Annex XII to the unrevised EU Taxonomy DDA (previously
integrating the requirements of the Delegated Regulation 2022/1214 and the related previously applicable templates dedicated to
direct and indirect applicable exposures towards the nuclear & fossil gas energy sectors).
BCR Group's application of revised EU Taxonomy DDA's provisions prompting
reporting credit institutions to make own reporting choices
'
Under the EU Taxonomy financial undertakings must report the Green Asset Ratio (‘GAR’) and other asset-based KPIs, while non-
financial undertakings must report the proportion of their Turnover, Capital Expenditure and Operating Expenditure that is
Taxonomy-eligible and Taxonomy-aligned. EU Taxonomy eligibility and alignment must be disclosed separately for each KPI.
De minimis 10% threshold applicable to UoP (Use of proceeds) assets with respect to sustainability assessment
In accordance with the revised EU Taxonomy DDA, up to 10% of credit institution's on-balance 'use of proceeds known' assets or
off-balance items considered into the denominator of the related Taxonomy KPI of the credit institution can be omitted from such
an assessment and reported instead as non-assessed exposures in a newly available dedicated section of the related EU Taxonomy
templates. For the year ending on 31 December 2025, being also the first year of application of the revised EU Taxonomy DDA by
BCR Group (and, inherently, by any other CSRD obligated undertaking), the Group opted for not making use of the above
65
described 10% de minimis threshold. Consequently, the newly introduced columnar section 'Non-assessed exposures' is reported
empty across all rows in all related EU Taxonomy simplified templates of the Group as of 31 December 2025.
De minimis 10% net turnover threshold applicable to reporting credit institutions' EU Taxonomy KPI to be disclosed
Another key change brought by the revised EU Taxonomy DDA relates to the possibility for reporting credit institutions to not
report a given EU Taxonomy KPI provided that the cumulative value of the net turnover generated by the activities covered by that
KPI is below 10 % of the total net turnover of the credit institution, as defined by the applicable regulatory requirements.
On this basis, BCR Group has proceeded with determining the relative contribution of Group's asset management fees, as reported
in Group's Consolidated and Separate Financial Statements - Statements of comprehensive income, for the financial year ending on
31 December 2024, and concluded that this contribution did not reach the mentioned de minimis threshold of 10%. Consequently,
BCR Group does not disclose its Assets under management ("AuM") KPI as of 31 December 2025 in any of the applicable
Templates. Consequently, the related rows of the Templates 1 and 5 for 31 December 2025, as presented below, (all applicable
views) are not populated.
Option to include selected assets towards CSRD non-obligated undertakings into the GAR calculation
Under the amended DDA, the counterparties’ Taxonomy KPIs may be either mandatorily disclosed (where the undertaking is
subject to CSRD reporting obligations) or voluntarily disclosed (where the undertaking is outside the mandatory scope but chooses
to publish its KPIs). However, in the latter case and provided that the reporting credit institution opts for considering exposures to
such undertakings into its Green Asset Ratio (GAR), the applicable general-purpose exposures and the calculated amounts arising
from the above mentioned weighing shall be distinctly disclosed into a newly available dedicated section of the related EU
Taxonomy templates, along any specific-purpose applicable exposures towards CSRD non-obligated undertakings that the credit
institution may voluntarily include into the assets covered by the GAR calculation (hence: assess the specifically financed activities
accordingly). For year-end 2025 EU Taxonomy reporting purposes, BCR Group opted for including into its assets covered by the
GAR calculation neither applicable general-purpose exposures to undertakings having voluntarily disclosed their taxonomy KPIs
nor applicable specific-purpose exposure towards CSRD non-obligated undertakings (whether they voluntarily disclosed any
taxonomy KPIs or not). Therefore, the newly included linear section 'Exposures included on a voluntary basis' is reported empty
across all columns in all related EU Taxonomy simplified templates of the Group as of 31 December 2025.
Revised EU Taxonomy DDA's approach to GAR calculation and its implementation in
Erste Group and BCR Group
The Green Asset Ratio (GAR) is the proportion of the taxonomy aligned assets or economic activities financed by BCR Group
compared to the total ‘GAR assets’.
The revised EU Taxonomy DDA have introduced a key change in the composition of GAR's denominator, aimed at achieving
GAR's 'symmetry' in the sense of ensuring a full overlap with respect to the categories of assets and counterparts falling in the
respective scopes of GAR's numerator and denominator. This means that:
— Non-trading non-derivative financial assets towards CSRD non-obligated undertakings, previously included in GAR's
denominator's only, have been fully excluded from the assets covered by the GAR calculation, unless the reporting credit
institution would opt to include them on a voluntary basis, which, as mentioned above, is not the case of BCR Group for 31
December 2025;
— Other categories of financial assets previously included in GAR's denominator only, such as hedging derivatives, on demand
inter-bank loans, cash and cash related assets, have been fully excluded from the assets covered by the GAR calculation;
— Other categories of assets, such as goodwill and other non-financial assets, previously included in GAR's denominator only,
have been fully excluded from the assets covered by the GAR calculation.
As a direct result of the newly adopted 'symmetrical' approach to the GAR calculation, BCR Group further proceeded with the
following two reallocations out of the 'GAR assets' into the category of assets not covered for the GAR calculation:
— Loans to Households other than those identified as EU taxonomy eligible (that means: other than those collateralized by
residential real estate or building renovation loans or motor vehicle loans granted starting with 2022), previously considered as a
category of assets covered in both the numerator and the denominator of the GAR (although inherently not eligible for
contributing to GAR's numerator), have been fully excluded from the assets covered by the GAR calculation and considered
instead within the GAR-excluded category 'Undertakings and entities not subject to CSRD' within the related Taxonomy
templates as per the revised EU Taxonomy DDA;
66
— similarly, general or sundry financings of Local Governments, previously considered by BCR Group as a category of assets
covered in both the numerator and the denominator of the GAR (although inherently not eligible for contributing to GAR's
numerator), have been fully excluded from the assets covered by the GAR calculation and considered instead within the GAR-
excluded category 'Undertakings and entities not subject to CSRD' within the related Taxonomy templates as per the revised EU
Taxonomy DDA.
Non-trading non-derivative financial assets having CSRD-obligated undertakings as counterparts are mandatorily included in the
GAR calculation. Considering the 'stop the clock' decision of the EU Commission in respect to the CSRD scope of obligated
undertakings (as also referred to above), the criteria applied at year-end 2024 for identification of the CSRD-obligated undertakings
continue to apply in full at year-end 2025 as well.
Thus, all undertakings considered to be of a public interest and employing more than 500 employees either as individual entities or
at the related group level are deemed required to comply with Article 8, Paragraph 1 of Regulation (EU)2020/852 and hence
identified as CSRD-obligated, even when such an obligation does not apply at related undertaking's individual level, provided that
the related undertaking is identified as subsidiary of a parent undertaking CSRD-obligated at consolidated level only. The assets
covered in the GAR calculation due to having financial or non-financial undertakings identified as CSRD-obligated as counterparts
are further considered in the GAR numerator as follows:
— in full, if the purpose of the financing is known (use of proceeds known) and the financed economic activities demonstrably
meet all technical screening criteria of the classification system (e.g. project financing) and are MS compliant, or
— weighed by the counterpart’s (or, if unavailable, by the counterpart’s group) most recently published taxonomy alignment KPI,
if the purpose of the financing is unknown (‘general purpose financing’, e.g. working capital loans).
“Use of proceeds known” non-trading non-derivative financial assets that have households or local governments as counterparts
(namely, public authority bodies or agencies other than those directly run by related country’s central government, e.g.
municipalities or local councils) are also covered in the GAR calculation, if the financed economic activities demonstrably meet all
the applicable technical screening criteria.
Financial assets previously already fully excluded from the GAR calculation, namely those towards central governments,
supranational issuers and central banks, as well as all trading assets, have continued to remain so.
Ensuing implications on the Eligibility KPI
Another significant KPI is the taxonomy eligibility KPI, which is disclosed ahead of GAR. This KPI puts the assets covered in the
GAR calculation that are classified as taxonomy eligible in relation to the total assets covered in the GAR calculation. Similarly to
the GAR, covered financial assets towards financial or non-financial undertakings are considered in both the numerator and the
denominator of the eligibility KPI provided that the related counterparts are themselves CSRD-obligated at either individual or
consolidated level, or the related undertaking is identified as subsidiary of a parent undertaking CSRD-obligated at consolidated
level, or are included by the reporting credit institution on a voluntary basis (not the case for BCR Group for year-end 2025, as
mentioned above). Such financial assets, (if they are neither held for trading nor derivative assets) are further considered in the
numerator of the taxonomy eligibility KPI as follows:
— in full, if the purpose of the financing is known, and the economic activities financed are found as taxonomy eligible by
corresponding to the activities described in the classification system, regardless of whether all technical criteria are met (e.g.
project financings), or
— weighed by counterpart’s (or, if unavailable, by counterpart’s group) most recently published taxonomy eligibility KPI, if the
purpose of the financing is unknown (“general purpose financing” e.g. working capital loans).
Additionally, ‘use of proceeds known’ non-trading non-derivative financial assets that have households or local governments as
counterparts are also included in the numerator of the taxonomy eligibility KPI, if the financed economic activities demonstrably
are found as taxonomy eligible by corresponding to the activities described in the classification system, regardless of whether all
technical criteria are met.
Derived KPIs ('proportions') additionally introduced by the revised EU Taxonomy DDA
Aside the GAR and the Eligibility KPI, the revised EU Taxonomy DDA have introduced within the GAR KPI stock and flow
templates a new columnar section named 'Proportion of Taxonomy aligned in Taxonomy eligible', where the ratio of taxonomy-
aligned assets into the taxonomy-eligible assets, as already referred to by the Annex V of the unrevised EU Taxonomy DDA as
'second step' KPIs, has to be distinctly disclosed.
5 ANNEX V – KPIs of credit institutions
ANNEX VI - Template for the KPI’s of credit institutions
67
Overview of BCR Group’s Taxonomy disclosures and KPIs
SCOPE OF THE PUBLISHED EU TAXONOMY REPORTING TEMPLATES
BCR Group has prepared the EU Taxonomy disclosures on a consolidated basis, in accordance with the CRR consolidation scope,
which is same as the BCR Group’s IFRS scope of consolidation (as disclosed in Note 40 of the Consolidated and Separate Financial
Statements), notably in terms of impact in the consolidated taxonomy disclosures based on Group’s total consolidated assets. BCR
Group’s total consolidated assets as of 31 December 2025 in accordance with the IFRS consolidation scope amount to RON
131,904,347 thousand (31 December 2024: RON 120,804,935 thousand), net of related credit loss allowances in amount of RON
2,683,220 thousand (31 December 2024: RON 3,082,300 thousand), which are grossed-up for EU Taxonomy reporting purposes
along adjustments to other balance-sheet items as further detailed in the sub-chapter ‘Reporting methodology and underlying
assumptions and interpretations’ below.
For year-end 2025, unlike for year-end 2024, BCR Group, as a credit institution, applies Annex V and VI of the EU Taxonomy
Disclosures Regulation( 5), as modified by the revised EU Taxonomy DDA. Inherently, this legislative update impacts therefore the
year-on-year comparability of some of BCR Group's Taxonomy KPIs. Had the methodological changes brought by the revised EU
Taxonomy DDA been applied for year-end 2024 as well, the related Taxonomy KPIs of the Group would have been different as
further detailed in the sub-chapter 'Summary of the revised EU Taxonomy DDA's effects on the comparative information as of year-
end 2024' below.
Based on CSRD, none of BCR Group’s sub-groups are in scope of sustainability reporting as of 31 December 2025 and therefore are
not publishing separate sustainability statements.
SUMMARY OF THE PUBLISHED EU TAXONOMY REPORTING TEMPLATES ACCOMPANIED BY CONSIDERATIONS
ON SELECTED YEAR-ON-YEAR DEVELOPMENTS
This paragraph provides a concise description of the EU Taxonomy reporting templates published by BCR Group as of 31
December 2025, simultaneously addressing the requirements of Annex XI to the EU Taxonomy Disclosures regulation with regards
to qualitative explanations addressing the main taxonomy KPIs.
Template 0 ‘Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation’
Template 0 provides a summary of key amounts and most significant taxonomy KPIs, as further disclosed in the Templates 1, 3 or 5
(see below). According to Annex VI to the EU Taxonomy Disclosures Regulation as modified by the revised EU Taxonomy DDA,
Template 0 does not feature a comparative (‘T-1’) section. However, the significant year-on-year developments in the quantitative
information featured in Template 0 are further outlined below and Template 0 for prior year is presented in chapter 'Summary of
revised EU Taxonomy DDA' effects on the comparative information as of year-end 2024' as:
— Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation, as of year-end 2024, as reported -
Template 0; and
— Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation, as of year-end 2024, as
recalculated - Template 0.
Total environmentally sustainable assets / activities (turnover view)
As of 31 December 2025, BCR Group discloses in Template 0 total taxonomy-aligned assets ('stock') in amount of RON 806,935
thousand ( 31 December 2024: RON 494,931 thousand) in ‘turnover' view and respectively RON 1,126,859 thousand (31 December
2024: RON 1,537,337 thousand) in 'CapEx' view. Out of them, those having been initially recognized during the year 2025 (‘flow’)
amount to RON 378,459 thousand (2024: RON 479,329 thousand) in 'turnover' view and respectively RON 496,004 thousand (2024:
887,461 thousand) in 'CapEx' view.
The 'turnover' view indicates that – as far as general-purpose financings to CSRD-obligated clients or issuers having published
Taxonomy KPIs are concerned – the related exposures have been weighted by their respective taxonomy KPIs in connection to
their revenue-generating activities (non-financial undertakings) or financings thereof (financial undertakings).
The 'Capex' view indicates that – as far as general-purpose financings to CSRD-obligated clients or issuers having published
Taxonomy KPIs are concerned – the related exposures have been weighted by their respective taxonomy KPIs in connection to
their capital expenditure activities (non-financial undertakings) or financings thereof (financial undertakings).
The year-on-year increase in the taxonomy aligned financings is mainly attributable to:
68
— Non-financial undertakings, for which the taxonomy aligned financings increased by 80% at 31 December 2025 compared with
31 December 2024 for Turnover view (stock), due to the general purpose financings weighed by related counterpart’s (or, if
unavailable, by the counterpart’s parent) most recently published Taxonomy-alignment KPI - in connection to their revenue-
generating activities (further details in sub-chapter 'CSRD-obligated financial and non-financial undertakings and use of their
KPIs');
— Households that could be assessed as taxonomy-aligned for the first time at year-end 2025, thanks to improvements in the
completeness and quality of the underlying data with respect to both the energy performance of the financed real estate
collaterals and the applicable physical risks scorings in the geo-locations of those collaterals, as modelled starting 2025 across
the required time horizons and Representative Concentration Pathway ('RCP') scenarios. Thus, taxonomy-aligned loans to
Households increased from RON 0 thousand at 31 December 2024 to RON 37,037 thousand at 31 December 2025. Further
methodological details are provided in the sub-chapter 'Retail lending - Climate Change Adaptation related DNSH assessment
of taxonomy-eligible mortgage and building renovation loans to Households substantially contributing to the Climate Change
Mitigation environmental objective' within the chapter 'Removal of GAR structural constraints and developments in data
availability' below.

| Turnover view (stock) | CapEx view (stock)
in RON thousand | 31.12.2024 | 31.12.2025 | 31.12.2024 | 31.12.2025
Financial undertakings | 139,903 | 130,949 | 156,503 | 166,106
Non-financial undertakings | 355,028 | 638,949 | 1,380,834 | 923,716
Households | — | 37,037 | — | 37,037
Total | 494,931 | 806,935 | 1,537,337 | 1,126,859

Taxonomy aligned financings for financial undertakings are relatively stable; also, for non-financial undertakings, specific purpose
financings are relatively stable.
Taxonomy aligned financings for non-financial undertakings, decreased by approx, 30% at 31 December 2025 compared with 31
December 2024 for CapEx view (stock), due to the general purpose financings weighed by related counterpart’s (or, if unavailable,
by the counterpart’s parent) most recently published Taxonomy-alignment KPI - in connection to their capital expenditure
activities (further details in sub-chapter 'CSRD-obligated financial and non-financial undertakings and use of their KPIs').
Total environmentally sustainable assets are further detailed, notably per categories of assets and related counterparties, but also
per eligibility and alignment towards each of the 6 environmental objectives within Template 1 ‘Assets for the calculation of GAR’,
disclosed in both the turnover view and the CapEx view and, as newly required by the revised EU Taxonomy DDA, as both stock
and flow as well. Template 1 no longer feature a 'T-1' comparative section.
Total GAR Stock and Flow (turnover view and CapEx view)
The below considerations addressing the year-on-year development (31 December 2025 vs 31 December 2024) in Group's GAR
Stock and Flow (turnover and CapEx views) are based on year-end 31 December 2024's related GAR ratios having been recalculated
by retrospectively applying the changes in GAR's calculation approach induced by the revised EU Taxonomy DDA, as outlined in
the preceding sub-chapter above and further summarized (in terms of quantitative impact) in the sub-chapter 'Summary of revised
EU Taxonomy DDA' effects on the comparative information as of year-end 2024' below. Such retrospective recalculation has the
purpose of ensuring 'like with like' comparability of the GAR ratios as at 31 December 2025 vs 31 December 2024, thus ensuring the
adequacy of the below considerations by reference to Annex XI's related requirements.
BCR Group’s total GAR (turnover view) acknowledges a development from 0.63% as reported as at 31 December 2024 (as
recalculated 1.37%) to 1.99% as at 31 December 2025 (stock) and respectively from 1.44% as reported as at 31 December 2024 (as
recalculated 4.14%) to 2.54% as of 31 December 2025 (flow).
In the CapEx view, the corresponding development is as follows: from 1.96% as reported as of 31 December 2024 (as recalculated
4.25%) to 2.79% as of 31 December 2025 (stock) and respectively from 2.67% as reported as of 31 December 2024 (as recalculated
7.66%) to 3.33% as of 31 December 2025 (flow).
BCR Group's GAR Stock as of 31 December 2025 remains nevertheless at a low level, mainly due to the significant challenges in
determining, with sufficient certainty, the Taxonomy alignment of the Group’s mortgage loans to households. The key difficulty
lies in meeting the DNSH requirements, especially in cases where the identification of high or very high physical risks at the
collateral’s location would require an asset‑level vulnerability assessment, including verification of any relevant adaptation
measures beyond those already incorporated into the physical‑risk scoring methodology. Further details are provided in the section
“Developments in data availability” below. None of such mortgage loans could therefore be reported as taxonomy aligned, although
for some of them the substantial contribution (SC) criterion would have been found as satisfied. Therefore, as of 31 December 2025,
out of BCR Group’s consolidated 'loans collateralised by residential immovable property' to Households amounting to RON
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19,754,719 thousand (2024: 18,232,392 thousand), only a relatively small fraction of 37,037 thousand (2024: 0 thousand) could be
reported as taxonomy aligned, despite most of this volume of RON 19,255,020 thousand (2024: 17,628,707 thousand) being assessed
and reported as taxonomy eligible.
GAR Stock and GAR Flow are further detailed, notably per categories of assets and related counterparts, but also per combined
eligibility (across all six environmental objectives) and alignment towards each environmental objective within Template 3 ‘GAR
KPI Stock’ and Template 4 ‘GAR KPI Flow’ respectively. These templates are disclosed in both the turnover view and the CapEx
view, with no 'T-1' comparative sections, in accordance with the Annex VI as modified by the revised EU Taxonomy DDA. In
accordance with the revised EU Taxonomy DDA, both these templates newly include columnar sections respectively dedicated to
disclosing the proportion of aligned assets into the related eligible assets, as well as the proportion of non-assessed assets into the
related total assets covered by the GAR calculation.
Financial Guarantees (FinGuar) KPI Stock (turnover view and CapEx view)
Whilst the GAR refers to credit institution’s on-balance assets, the FinGuar KPI focuses on credit institution’s off-balance
exposures. Unlike the GAR, BCR Group’s FinGuar Stock KPI decreased on a year-on-year basis: from 17.44% as of 31 December
2024 to 3.56% as of 31 December 2025 (turnover view) and respectively from 25.95% as of 31 December 2024 to 13.71% as of 31
December 2025 (CapEx view). This development can be explained by the limited year-on-year change in the specific population of
underlying CSRD-obligated counterparts and the related taxonomy KPIs applied, and it has been also slightly adversely influenced
by local governments becoming a relevant counterpart sub-category for this KPI in accordance with the revised EU Taxonomy
DDA, along CSRD-obligated undertakings, taking into account that the aforementioned year-end 2024 comparatives were not
recalculated in this respect.
FinGuar KPI Stock and FinGuar KPI Flow are further detailed, notably per categories of assets and related counterparts, but also
per combined eligibility across all 6 environmental objectives and alignment towards each environmental objective within
Template 5 ‘KPI Off balance-sheet exposures’. These templates are disclosed in both the turnover view and the CapEx view, as well
as in both stock and flow views, wit h no comparative section included. The template also discloses the proportion of any non-
assessed exposures into the total amount of related off-balance sheet exposures covered by Taxonomy.
Template 2 GAR sector information
This template provides, in both stock turnover view and stock CapEx view, a breakdown per the applicable NACE codes of all the
eligible and aligned amounts featured in Template 1 as assets covered in the GAR calculation, limited to the first 10 NACE codes in
terms of materiality of the related gross carrying amounts. Template 2 includes two additional rows that capture on‑balance‑sheet
banking book exposures which fall under the EU Taxonomy and that are fully (specific‑purpose lending) or partly (general‑purpose
lending) attributable to the Nuclear and Fossil Gas energy sectors. These exposures may arise either directly, from CSRD‑obligated
non‑financial undertakings whose main activities are in these energy sectors, or indirectly, from CSRD‑obligated financial
institutions whose own exposures relate to CSRD‑obligated non‑financial undertakings primarily operating in these sectors.
As mentioned above, BCR Group does not disclose its AuM KPI as of 31 December 2025 in any of the applicable views, due to
applying the 'de minimis' provision of the revised EU Taxonomy DDA with respect to the credit institution's main Taxonomy KPIs
covering assets or off-balance sheet items contributing by less than 10% to institution's net annual turnover. Therefore, the related
proportions in respect of the taxonomy-eligible and respectively taxonomy-aligned amounts attributable to the nuclear energy and
respectively fossil gas activities, as presented above with regards to GAR (all views) and respectively FinGuar (all views) have not
been determined and are therefore not available and not disclosed with regards to AuM KPI.
According to the revised EU Taxonomy DDA, Template 2 does not feature a ‘T-1’ comparative section and is provided as both stock
and flow, in both turnover and CapEx view.
Revised EU Taxonomy DDA's brought forward disclosures on financings of Nuclear and Fossil Gas related
economic activities
According to the revised EU Taxonomy DDA, such disclosures are limited to those already captured in Template 2, as described
above. Following the deletion of Annex XII to the EU Taxonomy Disclosures Regulation, the Nuclear and Fossil Gas additional
templates formerly required and consequently published by BCR Group for the year-end 2024 are no longer featured in Groups EU
Taxonomy disclosures as at 31 December 2025.
SELECTED KPIS’ OVERVIEW
As of 31 December 2025, BCR Group’s total eligibility KPI and total GAR can be summarized as follows:
Turnover view
— BCR Group’s consolidated taxonomy eligible assets amount to RON 29,262,573 thousand ( 2024: RON 27,078,978 thousand),
representing 72.33% (2024: as formerly reported 34.57% and as recalculated 74.91%) of the total covered assets.
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— BCR Group’s consolidated taxonomy aligned assets amount to RON 806,935 thousand (2024 : RON 494,931 thousand),
representing 1.99% (2024: as formerly reported 0.63% and as recalculated 1.37%) of the total covered assets.
CapEx view
— BCR Group’s taxonomy eligible assets amount to RON 31,068,164 thousand (2024: RON 28,836,493 thousand), representing
76.80% (2024: as formerly reported 36.81% and as recalculated 79.78%) of the total covered assets.
— BCR Group’s taxonomy aligned assets amount to RON 1,126,859 thousand (2024: RON 1,537,337 thousand), representing 2.78%
( 2024: as formerly reported 1.96% and as recalculated 4.25%) of the total covered assets.
In the turnover view, the total eligibility KPI and total GAR as of 31 December 2025 are further comparatively analyzed and
presented in the charts below:
Therefore, as of 31 December 2025, BCR Group’s total taxonomy eligibility KPI consists of the following main components:
— Financing to private households to the amount of RON 19,255,020 thousand, 66% (2024: RON 17,628,707 thousand as reported
and as recalculated, 65%), the purpose of which corresponds to taxonomy eligible activities in the real estate sector.
— Financing to local and regional governments to the amount of RON 6,403,169 thousand, 22% (2024: RON 6,341,421 thousand as
reported and as recalculated, 23%), the purpose of which corresponds to taxonomy eligible activities.
— Use of proceeds known and unknown financing to non-financial undertakings to the amount of RON 2,195,246 thousand, 7%
(2024: RON 1,277,106 thousand as reported and as recalculated, 5%) and to financial undertakings to the amount of RON
1,406,807 thousand, 5% (2024: RON 1,826,269 thousand as reported and as recalculated, 7%). Financings with the use of
proceeds unknown have been classified proportionately as taxonomy eligible based on the eligibility KPIs published.
The taxonomy-eligible assets mentioned above further contribute to Group's GAR as at 31 December 2025, as follows:
— Use of proceeds known 'loans collateralised by residential immovable property' to private households to the amount of RON
37,037 thousand (2024: RON 0 thousand) - 5% contribution to aligned on-balance exposure (Group's GAR) (2024 - 0%).
— Use of proceeds known and unknown financing to financial and respectively non-financial undertakings to the amount of RON
130,949 thousand, 16% (2024: RON 139,903 thousand, 28%) and respectively RON 638,949 thousand, 79% (2024: RON 355,028
thousand, 72%). Overall 61% (2024: 43%) of the combined aligned amount resulting from use of proceeds unknown financing
that were classified proportionately as taxonomy aligned, based on the alignment KPIs published by the respective
counterparties.
Removal of GAR structural constraints and developments in data availability
Up to 31 December 2024, the taxonomy disclosures and KPIs of BCR Group as of 31 December 2025 , as well as their year-on-year
development as outlined above, have been inherently influenced by both structural constraints arising from both the legal design of
the GAR and the restricted scope of the CSRD, as well as by various other data availability limitations. Such constraints and
limitations have considerably reduced in terms of their adverse GAR impact, as further described below.
Removal of GAR structural constraints
Due to the extensive information required to evaluate the applicable taxonomy alignment technical criteria (SC, DNSH), as well as
the MS compliance. the scope of application of the EU Taxonomy Disclosures Regulation is limited by legislation (at EU level:
CSRD), as far as qualifying exposures to undertakings are concerned, to those that are CSRD-obligated as at the current reporting
year-end, as well as to any subsidiaries thereof. For BCR Group, this meant that at year-end 2024 - prior to the revised EU
Taxonomy DDA becoming applicable as of 31 December 2025, a significant part of the portfolio ( notably small and medium-sized
enterprises not CSRD-obligated and not belonging to CSRD‑obligated group) could not be included in the numerators of the
Taxonomy eligibility KPI and the GAR, with most of them qualifying only for the denominators (thus resulting in ‘GAR structural
asymmetry’).
As outlined above in the introductory part of this chapter, the revised EU Taxonomy DDA removed GAR's structural asymmetry by
ensuring the scopes of assets covered in the numerator and respectively the denominator of the GAR are the same, with the direct
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consequence of assets previously falling in the scope of the GAR denominator only, notably the non-trading exposures towards
CSRD non-obligated undertakings, being removed in full from the GAR calculation. Another consequence for BCR Group was that
taxonomy inherently non-eligible exposures towards Households and respectively Local Governments, notably general or sundry
purpose consumer loans to retail customers and general or sundry financings of Local Governments, previously deemed relevant
for both GAR's numerator and denominator although inherently unable to make any contribution to the former, have been
removed in full from the GAR calculation as well.
Whilst, on the one hand, the revised EU Taxonomy DDA have thus removed GAR's structural asymmetry, GAR's coverage, hence
arguably GAR's representativeness of reporting credit institution's total assets has on the other hand contracted accordingly. Thus,
as at 31.12.2024, the proportion of total covered assets into total assets, as previously reported by BCR Group, amounted to 63.25%
for stock and 70.95% for flow. When, for comparability purposes only, they are retrospectively recalculated based on the revised EU
Taxonomy DDA, they decrease to 29.19% and respectively 24.70%. At 31 December 2025, as featured in the Template 0 presented
below, Group's GAR coverage amounts to 30.11% (stock) and respectively 27.74% (flow).
Developments in data availability
Retail lending - Climate Change Adaptation related DNSH assessment of taxonomy-eligible mortgage and building
renovation loans to Households substantially contributing to the Climate Change Mitigation environmental objective
Related to real estate and vehicle financing towards private households, as well as financing of housing or other taxonomy eligible
specific-purpose projects by local governments, for collateral which meets substantial contribution criteria of climate change
mitigation (e.g. energy efficiency), an assessment of climate-related physical risks and vulnerabilities is performed to ensure
compliance with the central DNSH criterion on climate change adaptation. This assessment is based on recognized scientific
sources, best-practice methodologies and available climate risk data, including external datasets and modelling where appropriate.
These efforts resulted in an enhanced methodology and more comprehensive underlying internal processes for assessing the DNSH
criterion for Climate Change Adaptation with regards to the mortgage loans to Households financing building acquisition/
ownership or building renovation identified as substantially contributing to the Climate Change Mitigation based on the related
financed rea.l estate collateral being substantiated as highly energy efficient, by reference to the related building's Energy
Performance Certificate as issued by the relevant local authority bearing the Label A.
In essence, for each such CCM substantially contributing loan to Households, the DNSH criterion had been deemed met for CCA
provided that all 21 physical risks identified as relevant for the real estate sector and Romania (out of the full list of 35 as per Annex
1 to the EU Taxonomy Regulation) have been determined as scoring lower than 'high' or, in the case of the risks of subsidence,
drought and precipitations, 'very high' severity in the specific geolocation of the related real estate collateral, across all applicable
statistically modelled RCP ('representative concentration pathway') scenarios with regards to greenhouse gas concentration
expectations and all available time horizons by reference to the generally accepted span of a residential building's economic life,
hence irrespective of the expected remaining maturity of the related loans. The setting of the scoring threshold to 'very high' for the
DNSH criterion to be deemed failed in the particular case of the above mentioned three physical risks reflects BCR Group's
reasonable expectation that all due adaptation measures are by default embedded into the advanced design and construction of
high-energy efficient buildings. Also, as far as the risk of floods is concerned, by factoring in the related 'defended risk' indices into
the above described DNSH assessment approach, BCR Group has ensured that the due adaptation measures were considered in the
retrieved scoring, hence in the applied 'high' scoring threshold below which the DNSH criterion was deemed met with respect to
this particular physical risk.
All such CCM substantially contributing loans for which, based on the aforementioned approach, the DNSH criterion for CCA has
been deemed met have been further classified as taxonomy-aligned, additionally based on the MS non-applicability as stemming
from EU Taxonomy DDA's Annex V's definition of the numerator of the Retail lending's alignment KPI, further corroborated to
BCR Group's interpretation that the FAQ 37 from EC's Third Commission Notice (indicating that the MS compliance assessment
for retail lending should address the corporate manufacturers upstream retail client's supply chain with regards to the financed
object) does not apply to buildings as far as the financed eligible activity is acquisition or ownership, rather than construction.
Environmental objectives 3-6
BCR Group’s EU Taxonomy disclosures as of 31 December 2024 have covered already the entire set of environmental objectives for
the alignment figures for general purpose loans. As at 31 December 2025, the applied client alignment KPIs for the environmental
objectives 3-6 continue to have, in general, relatively low values.
Furthermore, regarding both new and existing business with CSRD-obligated undertakings and local governments – despite
considerable efforts to further advance the examination of individual transactions – in some cases there is still insufficient
6 In Romania, in 2024, the CSRD directive was transposed locally by the Ministry of Finance, the National Bank of Romania and
—Romanian Financial Supervisory Authority so that all categories of entities are covered:
—Order of the Ministry of Finance no. 1802 of December, 2014 for the approval of the Accounting Regulations regarding the
individual annual financial statements and the consolidated annual financial statements, amended and supplemented including
by Order no. 85 of January 12, 2024 for the regulation of aspects related to sustainability reporting, that transposes locally the
requirements of the CSRD Directive, and Order no. 4164 of August, 2024;
—Order of the National Bank of Romania no. 1 of May, 2024 regarding the amendment and completion of the Order of the
National Bank of Romania no. 27/2010 for the approval of the Accounting Regulations compliant with the International
Financial Reporting Standards and the amendment and completion of the Order of the National Bank of Romania no. 6/2015
for the approval of the Accounting Regulations in accordance with European directives;
—Regulation no. 4 of February, 2024 regarding the modification and completion of Financial Supervision Authority Regulation
no.39/2015 for the approval of the Accounting Regulations in accordance with the International Financial Reporting Standards,
applicable to entities authorized, regulated and supervised by the Financial Supervisory Authority in the Financial Instruments
and Investments Sector, as well as the Investor Compensation Fund;
—-Regulation no. 17 of September, 2024 for the modification and completion of Financial Supervision Authority Regulation no.
14/2015 regarding the accounting regulations in accordance with the European directives applicable to the private pension
system;
—Regulation no. 7 of April, 2024 for the modification and completion of Financial Supervision Authority Regulation no. 36/2015
regarding the accounting regulations relating to individual annual financial statements and consolidated annual financial
statements applicable to brokerage companies carrying out insurance and/or reinsurance distribution activities
72
information and data basis on the customer side to determine whether these transactions can be classified as taxonomy-eligible
with regards to the environmental objectives 3-6, which resulted in relatively infrequent ‘use of proceeds known’ financings having
been classified as of 31 December 2025 as eligible by reference to these environmental objectives, none of them being further
assessed as taxonomy-aligned for the related objective. In the same time, the Taxonomy templates as per the Annex VI as modified
by the revised EU Taxonomy DDA do no longer require the breakdown of eligible exposures covered by Taxonomy per the six
environmental objectives.
Reporting methodology and underlying assumptions and interpretations
(Gross) carrying amounts of assets
Regarding the (gross) carrying amounts of assets represented in Template 1, the following approach was taken:
— For all relevant financial assets at amortised cost and debt securities at FVOCI (Fair Value Through Other Comprehensive
Income), the cost carried forward before the application of value adjustments (comprising both Expected Credit Loss ("ECL")
and Fair value ("FV") adjustments) was used - regardless of the counterparty type.
— For all other assets falling into lines 1-40 of Template 1, the gross carrying amount, i.e., the amount actually accounted for and
used in the CRR-consolidated IFRS FINREP balance sheet, was used. This means:
— For performing debt instruments at FVPL (Fair Value Through Profit or Loss), the gross carrying amount corresponds to the
fair value. For non-performing debt instruments at FVPL, the gross carrying amount corresponds to the fair value after the
accumulation of any accumulated negative changes in fair value due to credit risk.
— For all investments in associated and joint ventures, the carrying value in accordance with IAS28/IFRS11 is used.
— For all equity instruments at FVPL, the fair value is used.
— For all non-financial assets (‘collateral obtained by taking possession’ or ‘Other categories of assets’), the carrying amounts
disclosed according to IFRS are used.
CSRD-obligated financial and non-financial undertakings and use of their KPIs
All companies considered to be public interest entities and employing more than 500 people at either individual or consolidated
level have been obligated to report EU Taxonomy disclosures as of 31 December 2024 and continue to be so as of 31 December 2025
under the CSRD( 6) taking into account EC's 'stop the clock' decision referred to in the opening part of this chapter.
Financial and non-financial undertakings, that are parents of obligated groups, must publish their KPIs on a consolidated basis.
These KPIs are used for the purpose of determining BCR Group’s KPIs for qualifying exposures towards all subsidiaries of this
group (“closest reporting parent”), unless KPIs are available for the specific single counterparty. KPIs are available for the specific
single counterparty.
Flow
For the purpose of preparing the 'flow' views of the Templates 1,2,4 and 5, ‘flow’ has been defined as a sub-set of ‘stock’, limited to
related asset deals’ having been initially recognised during the current reporting date, with the exception of n on-financial assets
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and financial assets not having the nature of loans and advances, debt securities or equity instruments, for which ‘flow’ has been
deemed zero.
Significant notes for the consideration of assets in Template 1
Accepted for the numerator and the denominator of the GAR and therefore relevant for the taxonomy eligibility or alignment
review are non-trading loans and advances, debt securities, equity instruments having CSRD-obligated financial or non-financial
undertakings as counterparties (or subsidiaries thereof), as well as real estate and car financing to private households, use of
proceeds known financing with local governments and real estate collateral obtained through taking possession. As outlined above,
BCR Group chose to not consider any 'exposures included on a voluntary basis' into Group's GAR calculation as at 31 December
2025.
Impact in the BCR Group GAR ratio from Financial and non-financial undertakings
— Qualifying assets in relation to financial and non-financial undertakings are included in the numerator of the GAR if the direct
counterparty is CSRD-obligated or a subsidiary of a CSRD-obligated group.
— Financing to not CSRD-obligated financial and non-financial undertakings, which are not part of a CSRD-obligated group, were
fully excluded from the GAR calculation, irrespective of their domicile (EU or Non-EU).
Impact in the BCR Group GAR ratio from Private households
— Financing to private households and subject to further assessment for taxonomy eligibility or alignment comprises only real
estate-related financing or car loans (the latter from 1.1.2022). The remaining exposures to households (essentially: general-
purpose financing) have been fully excluded from the GAR calculation, the related gross carrying amounts being therefore
included in column a of Template's 1 row 25 ‘Undertakings and entities not subject to CSRD’.
— Financing of building renovation and collateralized by residential immovable property are solely included in the row ‘of which
building renovation loans’ in order to avoid double counting (RON 0 thousand for BCR Group as at 31 December 2024 and
2025).
Impact in the BCR Group GAR ratio from Local & regional governments
Financing to local or regional governments and subject to further assessment for taxonomy eligibility or alignment comprises only
financing where the respective use of proceeds is known. Financing without a known use of proceeds has been fully excluded from
the GAR calculation, the related gross carrying amounts being therefore included in column a of Template's 1 row 25
‘Undertakings and entities not subject to CSRD’.
Nuclear & fossil gas activities related new section of Template 2 'GAR sector information' (all views)
In the portfolio of BCR Group, there are no material 'use of proceeds known' financings related to the activities in the area of
nuclear energy and fossil gas listed in the Commission Delegated Regulation (EU) 2022/1214. Consequently, populating the
respective two additional rows newly required by the revised EU Taxonomy DDA within the Template 2 (all views) as at 31
December 2025 is essentially based on the KPIs published by the related counterparties (namely: CSRD-obligated energy companies
or CSRD-obligated banks or insurances obligated to KPI disclosure directly exposed to such energy companies) in their Nuclear &
Fossil gas related templates 2 and 4 (related views), as reported at 31 December 2024 based on the requirements of the former
Annex XII to the EU Taxonomy DDA, meanwhile deleted by the revised EU Taxonomy DDA.
Summary of revised EU Taxonomy DDA' effects on the comparative information as of
year-end 2024
In accordance with the Taxonomy templates' layouts as per the Annex VI to the EU Taxonomy DDA as modified by the revised EU
Taxonomy DDA, no prior-year comparatives are featured in any of them. However, for comparability purposes only in the context
of addressing Annex XI's requirement of providing qualitative disclosures around the year-on-year development in reporting
institution's main Taxonomy KPIs, BCR Group is summarizing below prior year's Taxonomy KPIs and other related quantitative
information as at 31 December 2024, both as previously published and as recalc ulated.
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Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation, as of year-end 2024, as
reported - Template 0

'31 December 2024 | Total exposure to Taxonomy- aligned activities (RON thousand) | KPI | KPI | % coverage (over total assets) | non assessed exposures (% of covered assets)* | non assessed exposures (% of covered assets)**
|  | Turnover-based | CapEx-based | Turnover- based | CapEx- based |  | Turnover-based | CapEx-based
Main KPI | Green asset ratio (GAR) stock | 494,931 | 1,537,337 | 0.63% | 1.96% | 63.25% | 22.66% | 36.75%

'31 December 2024 | Total exposure to Taxonomy- aligned activities (RON thousand) | KPI | KPI | % coverage (over total assets) | non assessed exposures (% of covered assets)* | non assessed exposures (% of covered assets)**
|  | Turnover-based | CapEx-based | Turnover- based | CapEx- based |  | Turnover-based | CapEx-based
Additional KPI | GAR (flow) | 479,329 | 887,461 | 1.44% | 2.67% | 70.95% | 27.32% | 29.05%
| Trading book |  |  |  |  |  |  |
| Financial guarantees | 287,352 | 427,500 | 17.44% | 25.95% |  |  |
| Assets under management | 96,595 | 199,625 | 2.99% | 6.17% |  |  |
| Fees and commissions income |  |  |  |  |  |  |

*% of assets excluded from the numerator of the GAR (Article 7 (2) and (3) and Section 1.1.2. of Annex V)
**% of assets excluded from the denominator of the GAR (Article 7 (1)) and Section 1.2.4 of Annex V)
Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation, as of year-end 2024, as
recalculated - Template 0

'31 December 2024 | Total exposure to Taxonomy- aligned activities (RON thousand) | KPI | KPI | % coverage (over total assets) | non assessed exposures (% of covered assets) | non assessed exposures (% of covered assets)
|  | Turnover-based | CapEx-based | Turnover- based | CapEx- based |  | Turnover-based | CapEx-based
Main KPI | Green asset ratio (GAR) stock | 494,931 | 1,537,337 | 1.37% | 4.25% | 29.19% | 0.00% | 0.00%

'31 December 2024 | Total exposure to Taxonomy- aligned activities (RON thousand) | KPI | KPI | % coverage (over total assets) | non assessed exposures (% of covered assets) | non assessed exposures (% of covered assets)
|  | Turnover-based | CapEx-based | Turnover- based | CapEx- based |  | Turnover-based | CapEx-based
Additional KPI | GAR (flow) | 479,329 | 887,461 | 4.14% | 7.66% | 24.70% | 0.00% | 0.00%
| Trading book |  |  |  |  |  |  |
| Financial guarantees | 287,352 | 427,500 | 17.44% | 25.95% |  |  |
| Assets under management | 96,595 | 199,625 | 2.99% | 6.17% |  |  |
| Fees and commissions income |  |  |  |  |  |  |

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Additional KPIs:

31 December 2024 | As previously published | As recalculated
Template 3 turnover view, additional changes |  |
Eligibility KPI – Households | 54.70% | 96.69%
Eligibility KPI – Local Governments | 98.01% | 100.00%
Eligibility KPI – total | 34.51% | 74.91%
Template 3 capex view, additional changes |  |
Eligibility KPI – Households | 54.70% | 96.69%
Eligibility KPI – Local Governments | 98.01% | 100.00%
Eligibility KPI – total | 36.68% | 79.78%

The comparative figures that would have been impacted as detailed above are not presented once again accordingly in the
respective views of the related templates, given that, according to the revised EU Taxonomy DDA, the related templates no longer
feature a comparative 'T-1' section.
Consideration of EU Taxonomy in BCR Group’s business strategies, product design
processes and engagement with clients and counterparties
BCR Group informs its customers about possible cost advantages that can arise from taxonomy-aligned disclosure. The GAR is
currently not integrated into the strategic board internal remuneration framework and should not be considered as performance-
linked KPI for management incentives.
0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy
Regulation

'31 December 2025 | Total exposure to Taxonomy- aligned activities (RON thousand) | KPI | KPI | % coverage (over total assets) | non assessed exposures (% of covered assets) | non assessed exposures (% of covered assets)
|  | Turnover-based | CapEx-based | Turnover- based | CapEx- based |  | Turnover-based | CapEx-based
Main KPI | Green asset ratio (GAR) stock | 806,935 | 1,126,859 | 1.99% | 2.79% | 30.11% | 0.00% | 0.00%

'31 December 2025 | Total exposure to Taxonomy- aligned activities (RON thousand) | KPI | KPI | % coverage (over total assets) | non assessed exposures (% of covered assets) | non assessed exposures (% of covered assets)
|  | Turnover-based | CapEx-based | Turnover- based | CapEx-based |  | Turnover-based | CapEx-based
Additional KPI | GAR (flow) | 378,459 | 496,004 | 2.54% | 3.33% | 27.74% | 0.00% | 0.00%
| Trading book |  |  |  |  |  |  |
| Financial guarantees | 72,149 | 277,528 | 3.56% | 13.71% | 79.20% | 0.00% | 0.00%
| Assets under management |  |  |  |  |  |  |
| Fees and commissions income |  |  |  |  |  |  |

76
1.1. Assets for the calculation of GAR, stock turnover-based view

| 31 December 2025 in RON thousand | a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p
Total [gross] carrying amount | Of which Taxonom y-eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures |  |  |
Of which Taxonom y-aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitiona l | Of which enabling | Of which financing non- material activities or counterpar ties | Of which exposures financing counterpar ties reporting in accordanc e with Article 7(9) | Of which not assessed considere d non- material by the credit institution
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystem s (BIO)
1 | GAR - Covered assets in both numerator and denominator
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 40,452,175 | 29,260,243 | 806,935 | 779,619 | 16,835 | 6 | 10,265 | 210 | — | 313,944 | 15,357 | 191,766 | — | — | — | —
3 | Financial undertakings | 7,742,899 | 1,406,807 | 130,949 | 130,499 | 450 | — | — | — | — | — | 12,940 | 19,392 | — | — | — | —
4 | Loans and advances | 6,567,556 | 1,295,310 | 125,578 | 125,147 | 431 | — | — | — | — | — | 12,107 | 18,850 | — | — | — | —
5 | Debt securities, including UoP | 1,127,536 | 103,593 | 4,126 | 4,108 | 18 | — | — | — | — | — | 833 | 543 | — | — | — | —
6 | Equity instruments | 47,807 | 7,904 | 1,244 | 1,244 | — | — | — | — | — |  | — | — | — | — | — | —
7 | Non-financial undertakings | 6,551,388 | 2,195,246 | 638,949 | 612,083 | 16,385 | 6 | 10,265 | 210 | — | 276,907 | 2,417 | 172,373 | — | — | — | —
8 | Loans and advances | 6,551,388 | 2,195,246 | 638,949 | 612,083 | 16,385 | 6 | 10,265 | 210 | — | 276,907 | 2,417 | 172,373 | — | — | — | —
9 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
10 | Equity instruments | — | — | — | — | — | — | — | — | — |  | — | — | — | — | — | —
11 | Households | 19,754,719 | 19,255,020 | 37,037 | 37,037 | — |  | — |  |  | 37,037 | — | — | — | — | — | —
12 | of which loans collateralised by residential immovable property | 19,754,719 | 19,255,020 | 37,037 | 37,037 | — |  | — |  |  | 37,037 | — | — | — | — | — | —
13 | of which building renovation loans | — | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
14 | of which motor vehicle loans | — | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
15 | Local governments financing | 6,403,169 | 6,403,169 | — | — | — | — | — | — | — | — | — | — | — | — | — | —
16 | Housing financing | — | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
17 | Other local government financing | 6,403,169 | 6,403,169 | — | — | — |  | — |  |  | — | — | — | — | — | — | —
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 2,330 | 2,330 | — | — | — |  | — |  |  | — | — | — | — | — | — | —
19 | Exposures included on a voluntary basis | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
20 | Total GAR assets | 40,454,505 | 29,262,573 | 806,935 | 779,619 | 16,835 | 6 | 10,265 | 210 | — | 313,944 | 15,357 | 191,766 | — | — | — | —
21 | Assets not covered for GAR calculation | 93,884,962 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
22 | Central governments and Supranational issuers | 38,861,116 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

77

23 | Central banks exposure | 7,550,199 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
24 | Trading book | 3,329,764 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
25 | Undertakings and entities not subject to CSRD | 38,302,679 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 21,959,789 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
27 | Loans and advances | 21,889,512 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
28 | of which loans collateralised by commercial immovable property | 5,069,799 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
29 | of which building renovation loans | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30 | Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
31 | Equity instruments | 70,277 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 131,409 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
33 | Loans and advances | 125,919 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
34 | Debt securities | 5,490 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
35 | Equity instruments | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
36 | Derivatives | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
37 | On demand interbank loans | 114,045 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
38 | Cash and cash-related assets | 3,778,145 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
39 | Other categories of assets (e.g. Goodwill, commodities etc.) | 1,949,014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
40 | Total assets | 134,339,467 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | 2,024,216 | 363,937 | 72,149 | 70,951 | 1,168 | — | 30 | — | — | — | 1,513 | 36,401 | — | — | — | —
42 | Assets under management | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
43 | Of which debt securities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
44 | Of which equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —

78
1.2 Assets for the calculation of GAR, flow turnover-based view

| Financial year 2025 in RON thousand | a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p
Total [gross] carrying amount | Of which Taxonom y-eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures |  |  |
Of which Taxonom y-aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling | Of which financing non- material activities or counterpart ies | Of which exposures financing counterpart ies reporting in accordanc e with Article 7(9) | Of which not assessed considered non- material by the credit institution
Climate Change Mitigation (CCM) | Climate Change Adaptatio n (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversi ty and Ecosyste ms (BIO)
1 | GAR - Covered assets in both numerator and denominator
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 14,916,401 | 7,609,696 | 378,459 | 367,456 | 1,346 | — | 9,544 | 113 | — | 6,004 | 14,334 | 79,247 | — | — | — | —
3 | Financial undertakings | 6,401,246 | 1,253,290 | 123,358 | 122,949 | 410 | — | — | — | — | — | 11,976 | 18,549 | — | — | — | —
4 | Loans and advances | 6,079,381 | 1,232,811 | 122,040 | 121,641 | 399 | — | — | — | — | — | 11,976 | 18,371 | — | — | — | —
5 | Debt securities, including UoP | 313,259 | 20,479 | 1,318 | 1,308 | 10 | — | — | — | — | — | — | 178 | — | — | — | —
6 | Equity instruments | 8,606 | — | — | — | — | — | — | — | — |  | — | — | — | — | — | —
7 | Non-financial undertakings | 3,244,746 | 1,087,293 | 249,096 | 238,503 | 936 | — | 9,544 | 113 | — | — | 2,359 | 60,699 | — | — | — | —
8 | Loans and advances | 3,244,746 | 1,087,293 | 249,096 | 238,503 | 936 | — | 9,544 | 113 | — | — | 2,359 | 60,699 | — | — | — | —
9 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
10 | Equity instruments | — | — | — | — | — | — | — | — | — |  | — | — | — | — | — | —
11 | Households | 4,710,865 | 4,709,569 | 6,004 | 6,004 | — |  | — |  |  | 6,004 | — | — | — | — | — | —
12 | of which loans collateralised by residential immovable property | 4,710,865 | 4,709,569 | 6,004 | 6,004 | — |  | — |  |  | 6,004 | — | — | — | — | — | —
13 | of which building renovation loans | — | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
14 | of which motor vehicle loans | — | — | — | — |  |  |  |  |  | — | — | — | — | — | — | —
15 | Local governments financing | 559,544 | 559,544 | — | — | — | — | — | — | — | — | — | — | — | — | — | —
16 | Housing financing |  |  | — | — | — |  | — |  |  | — | — | — | — | — | — | —
17 | Other local government financing | 559,544 | 559,544 | — | — | — |  | — |  |  | — | — | — | — | — | — | —
18 | Collateral obtained by taking possession: residential and commercial immovable properties | — | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
19 | Exposures included on a voluntary basis | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
20 | Total GAR assets | 14,916,401 | 7,609,696 | 378,459 | 367,456 | 1,346 | — | 9,544 | 113 | — | 6,004 | 14,334 | 79,247 | — | — | — | —
21 | Assets not covered for GAR calculation | 38,848,180 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

79

22 | Central governments and Supranational issuers | 11,167,203 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
23 | Central banks exposure | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
24 | Trading book | 1,858,742 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
25 | Undertakings and entities not subject to CSRD | 22,042,503 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 13,224,024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
27 | Loans and advances | 13,224,024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
28 | of which loans collateralised by commercial immovable property | 2,718,784 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
29 | of which building renovation loans | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30 | Debt securities | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
31 | Equity instruments | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 111,168 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
33 | Loans and advances | 111,168 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
34 | Debt securities | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
35 | Equity instruments | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
36 | Derivatives | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
37 | On demand interbank loans | 1,587 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
38 | Cash and cash-related assets | 3,778,145 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
39 | Other categories of assets (e.g. Goodwill, commodities etc.) | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
40 | Total assets | 53,764,581 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | 1,030,739 | 86,323 | 52,712 | 51,967 | 734 | — | 11 | — | — | — | 388 | 30,074 | — | — | — | —
42 | Assets under management | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
43 | Of which debt securities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
44 | Of which equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —

80
1.3 Assets for the calculation of GAR, CapEx-based view, stock

| 31 December 2025 in RON thousand | a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p
Total [gross] carrying amount | Of which Taxonom y-eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures |  |  |
Of which Taxonom y-aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling | Of which financing non- material activities or counterpart ies | Of which exposures financing counterpart ies reporting in accordanc e with Article 7(9) | Of which not assessed considered non- material by the credit institution
Climate Change Mitigation (CCM) | Climate Change Adaptatio n (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversi ty and Ecosyste ms (BIO)
1 | GAR - Covered assets in both numerator and denominator
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 40,452,175 | 31,065,834 | 1,126,859 | 1,115,003 | 10,405 | 99 | 761 | 592 | — | 313,944 | 21,520 | 435,612 | — | — | — | —
3 | Financial undertakings | 7,742,899 | 1,428,035 | 166,106 | 165,274 | 737 | 95 | — | — | — | — | 13,394 | 39,568 | — | — | — | —
4 | Loans and advances | 6,567,556 | 1,308,139 | 154,242 | 153,428 | 719 | 95 | — | — | — | — | 12,561 | 36,841 | — | — | — | —
5 | Debt securities, including UoP | 1,127,536 | 111,755 | 10,445 | 10,426 | 18 | — | — | — | — | — | 833 | 2,724 | — | — | — | —
6 | Equity instruments | 47,807 | 8,141 | 1,419 | 1,419 | — | — | — | — | — |  | — | 3 | — | — | — | —
7 | Non-financial undertakings | 6,551,388 | 3,979,610 | 923,716 | 912,692 | 9,667 | 4 | 761 | 592 | — | 276,907 | 8,126 | 396,044 | — | — | — | —
8 | Loans and advances | 6,551,388 | 3,979,610 | 923,716 | 912,692 | 9,667 | 4 | 761 | 592 | — | 276,907 | 8,126 | 396,044 | — | — | — | —
9 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
10 | Equity instruments | — | — | — | — | — | — | — | — | — |  | — | — | — | — | — | —
11 | Households | 19,754,719 | 19,255,020 | 37,037 | 37,037 | — |  | — |  |  | 37,037 | — | — | — | — | — | —
12 | of which loans collateralised by residential immovable property | 19,754,719 | 19,255,020 | 37,037 | 37,037 | — |  | — |  |  | 37,037 | — | — | — | — | — | —
13 | of which building renovation loans | — | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
14 | of which motor vehicle loans | — | — | — | — |  |  |  |  |  | — | — | — | — | — | — | —
15 | Local governments financing | 6,403,169 | 6,403,169 | — | — | — | — | — | — | — | — | — | — | — | — | — | —
16 | Housing financing | — | — | — |  |  |  |  |  |  | — | — | — | — | — | — | —
17 | Other local government financing | 6,403,169 | 6,403,169 | — | — | — |  | — |  |  | — | — | — | — | — | — | —
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 2,330 | 2,330 | — | — | — |  | — |  |  | — | — | — | — | — | — | —
19 | Exposures included on a voluntary basis | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
20 | Total GAR assets | 40,454,505.28 | 31,068,164.497 | 1,126,859 | 1,115,003 | 10,405 | 99 | 761 | 592 | — | 313,944 | 21,520 | 435,612 | — | — | — | —
21 | Assets not covered for GAR calculation | 93,884,962 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
22 | Central governments and Supranational issuers | 38,861,116 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
23 | Central banks exposure | 7,550,199 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
24 | Trading book | 3,329,764 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

81

25 | Undertakings and entities not subject to CSRD | 38,302,679 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 21,959,789 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
27 | Loans and advances | 21,889,512 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
28 | of which loans collateralised by commercial immovable property | 5,069,799 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
29 | of which building renovation loans | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30 | Debt securities | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
31 | Equity instruments | 70,277 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 131,409 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
33 | Loans and advances | 125,919 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
34 | Debt securities | 5,490 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
35 | Equity instruments | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
36 | Derivatives | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
37 | On demand interbank loans | 114,045 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
38 | Cash and cash-related assets | 3,778,145 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
39 | Other categories of assets (e.g. Goodwill, commodities etc.) | 1,949,014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
40 | Total assets | 134,339,467 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | 2,024,216 | 705,093 | 277,528 | 274,340 | 2,532 | 1 | 575 | 79 | — | — | 1,414 | 82,360 | — | — | — | —
42 | Assets under management | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
43 | Of which debt securities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
44 | Of which equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —

82
1.4 Assets for the calculation of GAR, CapEx-based view, flow

| Financial year 2025 in RON thousand | a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p
Total [gross] carrying amount | Of which Taxonom y-eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures |  |  |
Of which Taxonom y-aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling | Of which financing non- material activities or counterpart ies | Of which exposures financing counterpart ies reporting in accordanc e with Article 7(9) | Of which not assessed considered non- material by the credit institution
Climate Change Mitigation (CCM) | Climate Change Adaptatio n (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversi ty and Ecosyste ms (BIO)
1 | GAR - Covered assets in both numerator and denominator
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 14,916,401 | 8,307,024 | 496,004 | 493,004 | 2,268 | 87 | 645 | — | — | 6,004 | 20,531 | 163,525 | — | — | — | —
3 | Financial undertakings | 6,401,246 | 1,266,412 | 152,597 | 151,838 | 673 | 87 | — | — | — | — | 12,405 | 36,471 | — | — | — | —
4 | Loans and advances | 6,079,381 | 1,243,568 | 149,404 | 148,655 | 662 | 87 | — | — | — | — | 12,405 | 35,587 | — | — | — | —
5 | Debt securities, including UoP | 313,259 | 22,844 | 3,193 | 3,183 | 10 | — | — | — | — | — | — | 884 | — | — | — | —
6 | Equity instruments | 8,606 | — | — | — | — | — | — | — | — |  | — | — | — | — | — | —
7 | Non-financial undertakings | 3,244,746 | 1,771,499 | 337,402 | 335,162 | 1,595 | — | 645 | — | — | — | 8,126 | 127,054 | — | — | — | —
8 | Loans and advances | 3,244,746 | 1,771,499 | 337,402 | 335,162 | 1,595 | — | 645 | — | — | — | 8,126 | 127,054 | — | — | — | —
9 | Debt securities, including UoP | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
10 | Equity instruments | — | — | — | — | — | — | — | — | — |  | — | — | — | — | — | —
11 | Households | 4,710,865 | 4,709,569 | 6,004 | 6,004 | — | — | — | — | — | 6,004 | — | — | — | — | — | —
12 | of which loans collateralised by residential immovable property | 4,710,865 | 4,709,569 | 6,004 | 6,004 | — |  | — |  |  | 6,004 | — | — | — | — | — | —
13 | of which building renovation loans | — | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
14 | of which motor vehicle loans | — | — | — | — |  |  |  |  |  | — | — | — | — | — | — | —
15 | Local governments financing | 559,544 | 559,544 | — | — | — | — | — | — | — | — | — | — | — | — | — | —
16 | Housing financing |  | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
17 | Other local government financing | 559,544 | 559,544 | — | — | — |  | — |  |  | — | — | — | — | — | — | —
18 | Collateral obtained by taking possession: residential and commercial immovable properties | — | — | — | — | — |  | — |  |  | — | — | — | — | — | — | —
19 | Exposures included on a voluntary basis | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
20 | Total GAR assets | 14,916,401 | 8,307,024 | 496,004 | 493,004 | 2,268 | 87 | 645 | — | — | 6,004 | 20,531 | 163,525 | — | — | — | —
21 | Assets not covered for GAR calculation | 38,848,180 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
22 | Central governments and Supranational issuers | 11,167,203 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
23 | Central banks exposure | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

83

24 | Trading book | 1,858,742 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
25 | Undertakings and entities not subject to CSRD | 22,042,503 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
26 | SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations | 13,224,024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
27 | Loans and advances | 13,224,024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
28 | of which loans collateralised by commercial immovable property | 2,718,784 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
29 | of which building renovation loans | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30 | Debt securities | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
31 | Equity instruments | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
32 | Non-EU country counterparties not subject to CSRD disclosure obligations | 111,168 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
33 | Loans and advances | 111,168 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
34 | Debt securities | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
35 | Equity instruments | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
36 | Derivatives | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
37 | On demand interbank loans | 1,587 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
38 | Cash and cash-related assets | 3,778,145 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
39 | Other categories of assets (e.g. Goodwill, commodities etc.) | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
40 | Total assets | 53,764,581 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments
41 | Financial guarantees | 1,030,739 | 290,882 | 187,855 | 186,672 | 976 | 1 | 205 | 1 | — | — | 170 | 67,260 | — | — | — | —
42 | Assets under management | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
43 | Of which debt securities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —
44 | Of which equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | —

84
2.1 GAR sector information, stock turnover-based view

| a | b | c | d | e | f | g | h | i | j
| Breakdown by sector - NACE 4 digits level (code and label) 31 December 2025 in RON thousand | Total [Gross] carrying amount | Of which Taxonomy eligible | Of which Taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystems (BIO)
1 | K64.19 Other monetary intermediation | 6,829,013 | 1,266,491 | 115,094 | 114,668 | 426 | — | — | — | —
2 | O84.11 General public administration | 6,478,000 | 6,403,169 | — | — | — | — | — | — | —
3 | L68.20 Renting and operating of own or leased real estate | 1,057,270 | 1,040,546 | 276,907 | 276,907 | — | — | — | — | —
4 | H49.50 Transport via pipeline | 952,515 | — | — | — | — | — | — | — | —
5 | D35.14 Trade of electricity | 655,177 | 198,180 | — | — | — | — | — | — | —
6 | D35.22 Distribution of gaseous fuels through mains | 394,452 | 106,502 | 102,558 | 102,558 | — | — | — | — | —
7 | D35.13 Distribution of electricity | 356,068 | 149,328 | — | — | — | — | — | — | —
8 | Q86.22 Specialist medical practice activities | 331,869 | — | — | — | — | — | — | — | —
9 | K64.91 Financial leasing | 323,043 | 102,212 | 12,940 | 12,916 | 24 | — | — | — | —
10 | H52.23 Operation of transport terminals | 267,901 | 15,190 | 15,190 |  | 15,190 | — | — | — | —
11 | Nuclear activities | 13,249,206 | 1,495 | 1,355 | — | — | — | — | — | —
12 | Fossil gas activities | 13,249,206 | 19,677 | 8,411 | — | — | — | — | — | —
13 | Of which non-assessed exposures |  |  |  |  |  |  |  |  |

85
2.2 GAR sector information, flow turnover-based view

| a | b | c | d | e | f | g | h | i | j
| Breakdown by sector - NACE 4 digits level (code and label) Financial year 2025 in RON thousand | Total [Gross] carrying amount | Of which Taxonomy eligible | Of which Taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystems (BIO)
1 | K64.19 Other monetary intermediation | 5,915,872 | 1,154,714 | 111,625 | 111,216 | 410 | — | — | — | —
2 | D35.14 Trade of electricity | 655,177 | 198,180 | — | — | — | — | — | — | —
3 | O84.11 General public administration | 561,183 | 559,544 | — | — | — | — | — | — | —
4 | Q86.22 Specialist medical practice activities | 309,387 | — | — | — | — | — | — | — | —
5 | C19.20 Manufacture of refined petroleum products | 248,493 | 534 | — | — | — | — | — | — | —
6 | K64.92 Other credit granting | 224,534 | — | — | — | — | — | — | — | —
7 | C29.32 Manufacture of other parts and accessories for motor vehicles | 214,503 | 213,910 | 28,053 | 21,663 | — | — | 6,390 | — | —
8 | L68.20 Renting and operating of own or leased real estate | 212,420 | 202,384 | — | — | — | — | — | — | —
9 | D35.13 Distribution of electricity | 173,286 | 53,696 | — | — | — | — | — | — | —
10 | D35.12 Transmission of electricity | 172,507 | 172,505 | 172,505 | 172,505 | — | — | — | — | —
11 | Nuclear activities | 9,527,270 | 1,297 | 1,270 | — | — | — | — | — | —
12 | Fossil gas activities | 9,527,270 | 11,113 | 8,369 | — | — | — | — | — | —
13 | Of which non-assessed exposures |  |  |  |  |  |  |  |  |

86
2.3 GAR sector information, CapEx-based view, stock

| a | b | c | d | e | f | g | h | i | j
| Breakdown by sector - NACE 4 digits level (code and label) 31 December 2025 in RON thousand | Total [Gross] carrying amount | Of which Taxonomy eligible | Of which Taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystems (BIO)
1 | K64.19 Other monetary intermediation | 6,829,013 | 1,284,697 | 134,234 | 133,425 | 714 | 95 | — | — | —
2 | O84.11 General public administration | 6,478,000 | 6,403,169 | — | — | — | — | — | — | —
3 | L68.20 Renting and operating of own or leased real estate | 1,057,270 | 1,040,546 | 276,907 | 276,907 | — | — | — | — | —
4 | H49.50 Transport via pipeline | 952,515 | 952,515 | — | — | — | — | — | — | —
5 | D35.14 Trade of electricity | 655,177 | 477,665 | — | — | — | — | — | — | —
6 | D35.22 Distribution of gaseous fuels through mains | 394,452 | 323,451 | 315,562 | 315,562 | — | — | — | — | —
7 | D35.13 Distribution of electricity | 356,068 | 331,943 | — | — | — | — | — | — | —
8 | Q86.22 Specialist medical practice activities | 331,869 | — | — | — | — | — | — | — | —
9 | K64.91 Financial leasing | 323,043 | 104,262 | 28,345 | 28,321 | 24 | — | — | — | —
10 | H52.23 Operation of transport terminals | 267,901 | 9,001 | 7,957 | — | 7,957 | — | — | — | —
11 | Nuclear activities | 13,249,206 | 134,971 | 134,961 | — | — | — | — | — | —
12 | Fossil gas activities | 13,249,206 | 153,282 | 133,388 | — | — | — | — | — | —
13 | Of which non-assessed exposures |  |  |  |  |  |  |  |  |

87
2.4 GAR sector information, CapEx-based view, flow

| a | b | c | d | e | f | g | h | i | j
| Breakdown by sector - NACE 4 digits level (code and label) Financial year 2025 in RON thousand | Total [Gross] carrying amount | Of which Taxonomy eligible | Of which Taxonomy aligned | Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystems (BIO)
1 | K64.19 Other monetary intermediation | 5,915,872 | 1,166,642 | 125,912 | 125,152 | 673 | 87 | — | — | —
2 | D35.14 Trade of electricity | 655,177 | 477,665 | — | — | — | — | — | — | —
3 | O84.11 General public administration | 561,183 | 559,544 | — | — | — | — | — | — | —
4 | Q86.22 Specialist medical practice activities | 309,387 | — | — | — | — | — | — | — | —
5 | C19.20 Manufacture of refined petroleum products | 248,493 | 24,899 | — | — | — | — | — | — | —
6 | K64.92 Other credit granting | 224,534 | — | — | — | — | — | — | — | —
7 | C29.32 Manufacture of other parts and accessories for motor vehicles | 214,503 | 213,912 | 50,904 | 50,904 | — | — | — | — | —
8 | L68.20 Renting and operating of own or leased real estate | 212,420 | 202,384 | — | — | — | — | — | — | —
9 | D35.13 Distribution of electricity | 173,286 | 155,283 | — | — | — | — | — | — | —
10 | D35.12 Transmission of electricity | 172,507 | 172,507 | 168,417 | 168,417 | — | — | — | — | —
11 | Nuclear activities | 9,527,270 | 134,861 | 134,860 | — | — | — | — | — | —
12 | Fossil gas activities | 9,527,270 | 139,088 | 133,334 | — | — | — | — | — | —
13 | Of which non-assessed exposures |  |  |  |  |  |  |  |  |

88
3.1 GAR KPI stock turnover-based view

% (compared to corresponding total covered assets in the denominator) 31 December 2025 | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxonomy -eligible |  |  |  |  |  |  |  |  |  |  | Proportion of Taxonomy aligned in Taxonomy eligible | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversit y and Ecosystem s (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 72.33% | 1.99% | 1.93% | 0.04% | 0.00% | 0.03% | 0.00% | 0.00% | 0.78% | 0.04% | 0.47% | 2.76% | 0.00%
3 | Financial undertakings | 18.17% | 1.69% | 1.69% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.17% | 0.25% | 9.31% | 0.00%
4 | Loans and advances | 19.72% | 1.91% | 1.91% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.18% | 0.29% | 9.69% | 0.00%
5 | Debt securities, including UoP | 9.19% | 0.37% | 0.36% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.07% | 0.05% | 3.98% | 0.00%
6 | Equity instruments | 16.53% | 2.60% | 2.60% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% | 0.00% | 15.74% | 0.00%
7 | Non-financial undertakings | 33.51% | 9.75% | 9.34% | 0.25% | 0.00% | 0.16% | 0.00% | 0.00% | 4.23% | 0.04% | 2.63% | 29.11% | 0.00%
8 | Loans and advances | 33.51% | 9.75% | 9.34% | 0.25% | 0.00% | 0.16% | 0.00% | 0.00% | 4.23% | 0.04% | 2.63% | 29.11% | 0.00%
9 | Debt securities, including UoP | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
10 | Equity instruments | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% | 0.00% | 0.00% | 0.00%
11 | Households | 97.47% | 0.19% | 0.19% | 0.00% |  | 0.00% |  |  | 0.19% | 0.00% | 0.00% | 0.19% | 0.00%
12 | of which loans collateralised by residential immovable property | 97.47% | 0.19% | 0.19% | 0.00% |  | 0.00% |  |  | 0.19% | 0.00% | 0.00% | 0.19% | 0.00%
13 | of which building renovation loans | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
14 | of which motor vehicle loans | 0.00% | 0.00% | 0.00% |  |  |  |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
15 | Local governments financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
16 | Housing financing | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
17 | Other local government financing | 100.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 100.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
19 | Exposures included on a voluntary basis | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
20 | GAR - Total GAR assets | 72.33% | 1.99% | 1.93% | 0.04% | 0.00% | 0.03% | 0.00% | 0.00% | 0.78% | 0.04% | 0.47% | 2.76% | 0.00%

89
3.2 GAR KPI stock CapEx-based view

% (compared to corresponding total covered assets in the denominator) 31 December 2025 | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxonomy -eligible |  |  |  |  |  |  |  |  |  |  | Proportion of Taxonomy aligned in Taxonomy eligible | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversit y and Ecosystem s (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 76.80% | 2.79% | 2.76% | 0.03% | 0.00% | 0.00% | 0.00% | 0.00% | 0.78% | 0.05% | 1.08% | 3.63% | 0.00%
3 | Financial undertakings | 18.44% | 2.15% | 2.13% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.17% | 0.51% | 11.63% | 0.00%
4 | Loans and advances | 19.92% | 2.35% | 2.34% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.19% | 0.56% | 11.79% | 0.00%
5 | Debt securities, including UoP | 9.91% | 0.93% | 0.92% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.07% | 0.24% | 9.35% | 0.00%
6 | Equity instruments | 17.03% | 2.97% | 2.97% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% | 0.01% | 17.43% | 0.00%
7 | Non-financial undertakings | 60.74% | 14.10% | 13.93% | 0.15% | 0.00% | 0.01% | 0.01% | 0.00% | 4.23% | 0.12% | 6.05% | 23.21% | 0.00%
8 | Loans and advances | 60.74% | 14.10% | 13.93% | 0.15% | 0.00% | 0.01% | 0.01% | 0.00% | 4.23% | 0.12% | 6.05% | 23.21% | 0.00%
9 | Debt securities, including UoP | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
10 | Equity instruments | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% | 0.00% | 0.00% | 0.00%
11 | Households | 97.47% | 0.19% | 0.19% | 0.00% |  | 0.00% |  |  | 0.19% | 0.00% | 0.00% | 0.19% | 0.00%
12 | of which loans collateralised by residential immovable property | 97.47% | 0.19% | 0.19% | 0.00% |  | 0.00% |  |  | 0.19% | 0.00% | 0.00% | 0.19% | 0.00%
13 | of which building renovation loans | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
14 | of which motor vehicle loans | 0.00% | 0.00% | 0.00% |  |  |  |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
15 | Local governments financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
16 | Housing financing | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
17 | Other local government financing | 100.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 100.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
19 | Exposures included on a voluntary basis | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
20 | GAR - Total GAR assets | 76.80% | 2.79% | 2.76% | 0.03% | 0.00% | 0.00% | 0.00% | 0.00% | 0.78% | 0.05% | 1.08% | 3.63% | 0.00%

90
4.1 GAR KPI flow turnover-based view

% (compared to corresponding total covered assets in the denominator) Financial year 2025 | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxonomy -eligible |  |  |  |  |  |  |  |  |  |  | Proportion of Taxonomy aligned in Taxonomy eligible | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversit y and Ecosystem s (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 51.02% | 2.54% | 2.46% | 0.01% | 0.00% | 0.06% | 0.00% | 0.00% | 0.04% | 0.10% | 0.53% | 4.97% | 0.00%
3 | Financial undertakings | 19.58% | 1.93% | 1.92% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.19% | 0.29% | 9.84% | 0.00%
4 | Loans and advances | 20.28% | 2.01% | 2.00% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.20% | 0.30% | 9.90% | 0.00%
5 | Debt securities, including UoP | 6.54% | 0.42% | 0.42% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.06% | 6.44% | 0.00%
6 | Equity instruments | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% | 0.00% | 0.00% | 0.00%
7 | Non-financial undertakings | 33.51% | 7.68% | 7.35% | 0.03% | 0.00% | 0.29% | 0.00% | 0.00% | 0.00% | 0.07% | 1.87% | 22.91% | 0.00%
8 | Loans and advances | 33.51% | 7.68% | 7.35% | 0.03% | 0.00% | 0.29% | 0.00% | 0.00% | 0.00% | 0.07% | 1.87% | 22.91% | 0.00%
9 | Debt securities, including UoP | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
10 | Equity instruments | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% | 0.00% | 0.00% | 0.00%
11 | Households | 99.97% | 0.13% | 0.13% | 0.00% |  | 0.00% |  |  | 0.13% | 0.00% | 0.00% | 0.13% | 0.00%
12 | of which loans collateralised by residential immovable property | 99.97% | 0.13% | 0.13% | 0.00% |  | 0.00% |  |  | 0.13% | 0.00% | 0.00% | 0.13% | 0.00%
13 | of which building renovation loans | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
14 | of which motor vehicle loans | 0.00% | 0.00% | 0.00% |  |  |  |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
15 | Local governments financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
16 | Housing financing | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
17 | Other local government financing | 100.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
19 | Exposures included on a voluntary basis | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
20 | GAR - Total GAR assets | 51.02% | 2.54% | 2.46% | 0.01% | 0.00% | 0.06% | 0.00% | 0.00% | 0.04% | 0.10% | 0.53% | 4.97% | 0.00%

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4.2 GAR KPI flow CapEx-based view

% (compared to corresponding total covered assets in the denominator) Financial year 2025 | a | b | c | d | e | f | g | h | i | j | k | l | m
Taxonomy -eligible |  |  |  |  |  |  |  |  |  |  | Proportion of Taxonomy aligned in Taxonomy eligible | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversit y and Ecosystem s (BIO)
1 | GAR - Covered assets in both numerator and denominator |  |  |  |  |  |  |  |  |  |  |  |  |
2 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 55.69% | 3.33% | 3.31% | 0.02% | 0.00% | 0.00% | 0.00% | 0.00% | 0.04% | 0.14% | 1.10% | 5.97% | 0.00%
3 | Financial undertakings | 19.78% | 2.38% | 2.37% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.19% | 0.57% | 12.05% | 0.00%
4 | Loans and advances | 20.46% | 2.46% | 2.45% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.20% | 0.59% | 12.01% | 0.00%
5 | Debt securities, including UoP | 7.29% | 1.02% | 1.02% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.28% | 13.98% | 0.00%
6 | Equity instruments | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% | 0.00% | 0.00% | 0.00%
7 | Non-financial undertakings | 54.60% | 10.40% | 10.33% | 0.05% | 0.00% | 0.02% | 0.00% | 0.00% | 0.00% | 0.25% | 3.92% | 19.05% | 0.00%
8 | Loans and advances | 54.60% | 10.40% | 10.33% | 0.05% | 0.00% | 0.02% | 0.00% | 0.00% | 0.00% | 0.25% | 3.92% | 19.05% | 0.00%
9 | Debt securities, including UoP | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
10 | Equity instruments | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% | 0.00% | 0.00% | 0.00%
11 | Households | 99.97% | 0.13% | 0.13% | 0.00% |  | 0.00% |  |  | 0.13% | 0.00% | 0.00% | 0.13% | 0.00%
12 | of which loans collateralised by residential immovable property | 99.97% | 0.13% | 0.13% | 0.00% |  | 0.00% |  |  | 0.13% | 0.00% | 0.00% | 0.13% | 0.00%
13 | of which building renovation loans | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
14 | of which motor vehicle loans | 0.00% | 0.00% | 0.00% |  |  |  |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
15 | Local governments financing | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
16 | Housing financing | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
17 | Other local government financing | 100.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
18 | Collateral obtained by taking possession: residential and commercial immovable properties | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
19 | Exposures included on a voluntary basis | 0.00% | 0.00% | 0.00% | 0.00% |  | 0.00% |  |  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00%
20 | GAR - Total GAR assets | 55.69% | 3.33% | 3.31% | 0.02% | 0.00% | 0.00% | 0.00% | 0.00% | 0.04% | 0.14% | 1.10% | 5.97% | 0.00%

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5.1 KPI off-balance sheet exposures turnover-based view, stock

% (compared to corresponding total off-balance sheet assets) 31 December 2025 | a | b | c | d | e | f | g | h | i | j | k | l
Taxonomy eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystem s (BIO)
1 | Financial guarantees (FinGuar KPI) | 17.98% | 3.56% | 3.51% | 0.06% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.07% | 1.80% | 0.00%
2 | Assets under management (AuM KPI) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

5.2 KPI off-balance sheet exposures turnover-based view, flow

% (compared to corresponding total off-balance sheet assets) Financial year 2025 | a | b | c | d | e | f | g | h | i | j | k | l
Taxonomy eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystem s (BIO)
1 | Financial guarantees (FinGuar KPI) | 8.37% | 5.11% | 5.04% | 0.07% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.04% | 2.92% | 0.00%
2 | Assets under management (AuM KPI) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

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5.3 KPI off-balance sheet exposures CapEx-based view, stock

% (compared to corresponding total off-balance sheet assets) 31 December 2025 | a | b | c | d | e | f | g | h | i | j | k | l
Taxonomy eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystem s (BIO)
1 | Financial guarantees (FinGuar KPI) | 34.83% | 13.71% | 13.55% | 0.13% | 0.00% | 0.03% | 0.00% | 0.00% | 0.00% | 0.07% | 4.07% | 0.00%
2 | Assets under management (AuM KPI) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

5.4 KPI off-balance sheet exposures CapEx-based view, flow

% (compared to corresponding total off-balance sheet assets) Financial year 2025 | a | b | c | d | e | f | g | h | i | j | k | l
Taxonomy eligible |  |  |  |  |  |  |  |  |  |  | Non- assessed exposures
Taxonomy aligned | Breakdown per environmental objectives | Of which Use of Proceeds | Of which transitional | Of which enabling
Climate Change Mitigation (CCM) | Climate Change Adaptation (CCA) | Water and marine resources (WTR) | Circular economy (CE) | Pollution (PPC) | Biodiversity and Ecosystem s (BIO)
1 | Financial guarantees (FinGuar KPI) | 28.22% | 18.23% | 18.11% | 0.09% | 0.00% | 0.02% | 0.00% | 0.00% | 0.00% | 0.02% | 6.53% | 0.00%
2 | Assets under management (AuM KPI) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

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12.2.2 Climate change
BCR Group addresses climate change within its sustainability strategic planning, recognizing that transitioning to a net zero
economy is crucial for long-term wellbeing, financial stability and overall prosperity of society. Achieving the low carbon objectives
requires coordinated efforts across the financial system and the broader economy. We aim to achieve a net zero status of our
portfolio by 2050.
Through our double materiality analysis (DMA), we have identified climate change as one of the key sustainability topic that
significantly impacts our business and stakeholders. BCR Group aims to address the impact of its own operations and its financing
activities on climate change.
E1 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL
Material impacts, risks and opportunities (IROs)

Sustainability Matter | Type of IRO | IRO Description | Value chain | Time horizon
E1- Climate change adaptation | Risk | BCR Group faces a higher credit risk as climate-related physical risks can lead to a devaluation of collateral and/or to negative effects on the business models and lastly financial stability of debtors. The consequences are increased risk provisions for BCR Group and connected negative effects to its P&L and own funds. (Physical Risk) | Downstream | Long-term
Opportunity | Additional financial opportunities might be captured by BCR Group from financing of strategies/projects conducted by a wide array of entities, from local SMEs to large companies (e.g adaptation solutions for residential and commercial real estate, agriculture), municipalities and other public entities for adaptation infrastructure. | Downstream | Long-term
E1-Climate change mitigation | Potential Negative impact | The CO2 emissions of BCR Group in the upstream value chain contribute to climate change and thus to global warming. | Upstream | Long-term
Potential Negative impact | The CO2 emissions of BCR Group's own operations contribute to climate change and thus to global warming. | Own operations | Long-term
Negative impact* | The CO2 emissions financed by BCR Group contribute to climate change and therefore to global warming. | Downstream | All time horizons
Risk | BCR Group faces a higher credit risk as climate-related transition events (regulatory interventions) can lead to negative effects on the profitability of business models and lastly the financial stability of debtors. The consequences are increased risk provisions for BCR Group and connected negative effects to its P&L and own funds. (Transition Risk) | Downstream | Long-term
Opportunity | For BCR Group, additional financial opportunities may arise from investments in and the financing of clients to support their transition to sustainable business initiatives, and subsequently, the implementation of decarbonisation measures. | Downstream | Medium to Long-term
E1-Energy | Potential Negative impact | The energy (electricity, fuel and heating) used by BCR Group suppliers generates CO2 emissions and therefore contributes to climate change. | Upstream | Medium-term
Potential Negative impact | Until the assumed net zero targets for own operations are achieved, the energy (electricity, fuel and heating) used by BCR Group continues to generate CO2 emissions and therefore contributes to climate change. Also, a potential slow progression on the adoption of renewable energy (either purchased or self-generated) may lead to a higher contribution to any risk associated with climate change, physical or transitional. | Own operations | Medium-term
Negative impact* | BCR Group's financing of energy-intensive industries may lead to increased greenhouse gas emissions, thereby influencing climate change and global warming trends. | Downstream | All time horizons
Potential Positive impact | Through the financing of renewable energy projects, energy grid infrastructure and supply side flexibility (e.g. battery storage) BCR Group supports energy security, enables CO2-neutral power and contributes to the systemic shift towards a sustainable economy. | Downstream | Medium to Long-term
Risk | Price instability on the energy market due to climate change can result in decreased profitability in companies in energy-intensive sectors as well as liquidity shortage of retail clients, leading to a higher default risk and a related increase in risk provisions for BCR Group, impacting P&L as well as own funds.(Transition Risk) | Downstream | Medium-term
Opportunity | BCR Group's financing of renewable energy projects (e.g. wind and solar projects, battery storage) and energy transition enables neutral/ low CO2 energy production and offers new opportunities for the portfolio. | Downstream | Medium to Long-term

*In line with the methodology applied for the DMA, if not otherwise indicated, the short-term impact is actual, whilst for medium and long time horizons the impact is potential.
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Climate Change Adaptation
BCR Group is confronted with an elevated credit risk due to climate-related physical risks, which can lead to a devaluation of
collaterals, and subsequently affect the business model and financial stability of debtors. According to BCR Group's physical
climate risk analysis, these risks are a material driver for credit risk (on short, medium and long term), operational risk (on medium
and long-term), as well as strategic risk (on long-term). The pronounced credit risk exposure is largely driven by climate-related
hazards, particularly flood risk, which is identified as key physical risk driver for BCR Group as having material impact. Established
scientific expectations estimate physical risks, particularly climate-related hazards, to substantially intensify from the mid-century
onwards, impacting the portfolio and strategic position of BCR Group. The consequences are increased risk provisions for BCR
Group and connected negative impacts to its the profit and loss (P&L) statement and own funds. However, in the short- and
medium-term, physical risks are considered immaterial due to BCR Group's limited exposure to geographical areas or sectors that
are particularly vulnerable.
Additional financial opportunities arise from financing of companies that develop and provide solutions for climate change
adaptation, and adaptation infrastructure projects carried out by the public sector, as well as the funding of adaptation measures in
the real estate sector. For companies, this can include technologies and services such as climate-resilient infrastructure, advanced
water management systems, climate resilient crops, heat-resistant materials, flood protection technologies and early warning or
risk assessment tools. In the real estate sector, adaptation solutions may involve retrofitting buildings for improved energy
efficiency and thermal resilience, installing green roofs and walls, implementing flood-proof construction methods, enhancing
natural ventilation systems and integrating on-site water retention and drainage systems to mitigate the effects of extreme weather
events.
Climate Change Mitigation
The CO₂e emissions from BCR Group's own operations and its upstream value chain, as well as related to the financed portfolio,
contribute to climate change and, consequently, to global warming. In its own operations, key emission hotspots include energy
consumption in office buildings, heating and cooling systems, employee commuting and business travel. In the upstream value
chain, significant sources involve emissions from purchased goods and services, such as IT infrastructure, data centres and external
service providers.
BCR Group faces elevated credit risk from climate-related transition risks, such as regulatory interventions, which can adversely
affect the profitability and financial stability of debtors. As a result, BCR Group may be required to increase its risk provisions,
leading to negative impacts on its P&L and its own funds. The climate transition risk analysis performed at Erste Group level
indicates that, in a disorderly transition to a low-carbon economy, transition risks could significantly affect credit risk exposure
across all time horizons. Climate and environmental (CE) risks continue to shape financial markets and taxation, regulatory
changes and shifts in market behaviour of investors, consumers, suppliers and employees. The long-term effect on credit risk is
immaterial, as the initial shocks of high carbon pricing, technology changes and stranded assets have already been largely absorbed
by the market. Over time, markets and firms will adapt to new policy environment, reducing transition-related volatility. The
delayed transition scenario illustrates that delaying action amplifies disruption in the short and medium term, but eventually
stabilizes in the long run.
BCR Group can unlock financial opportunities by financing of clients that drive decarbonization, and advance the transition to a
sustainable economy. This may include financing solutions such as the electrification of industrial processes, the implementation
of energy efficiency measures, the shift to low-emission machinery and on-site renewable energy systems, as well as circular
economy related projects.
Energy
By financing renewable energy and energy grid infrastructure, BCR Group promotes CO₂e-neutral power and supports both energy
security and the transition to a sustainable economy. This includes investments in wind and solar, as well as the expansion and
modernisation of electricity grids, smart grid technologies, battery storage systems and interconnectors to enhance grid stability and
flexibility.
Volatility in energy markets, exacerbated by climate change and related physical or transition events, can negatively affect the
profitability of companies, particularly those operating in energy-intensive sectors, by increasing operational costs and reducing
margins. At the same time, rising and unstable energy prices may lead to liquidity constraints for retail clients, impairing their
repayment capacity. These developments contribute to a higher probability of default across portfolios, requiring increased risk
provisions from BCR Group and potentially resulting in adverse impacts on both the profit and loss statement and own funds.
BCR Group must also account for the increased vulnerability of its own physical infrastructure (such as data centers and branch
networks) to rising energy costs. Addressing these operational risks is essential for maintaining business continuity and meeting
sustainability targets, as high energy volatility can inflate the Bank’s Scope 2 emissions costs and complicate the achievement of its
transition targets.
7 For our use it is considered 'accelerated', implying that the disorderly transition starts already in the next year rather than in the
2030s allowing for a consistent assessment of the short (2026) and medium-term (2030) respectively.
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RESILIENCE OF THE BUSINESS MODEL
BCR Group, in line with Erste Group, has implemented a comprehensive scenario-based approach to assess and quantify transition
and physical risks in the short, medium and long-term on own operations, client relationships and the asset portfolio in 2024 (there
was no reassessment in 2025). The systematic analysis of potential future scenarios enables the identification of opportunities for
enhanced resilience and adaptation.
Scenario Analysis Framework
The analytical framework applied by BCR Group is developed at Erste Group level and incorporates scenarios informed by the
Network for Greening the Financial System (NGFS) to explore the impact of transition and physical risks. The results enable BCR
Group to assess its short to medium‑term financial resilience, while also evaluating the adaptability and long‑term robustness of its
business model amid increasing uncertainties in the business environment. The selected scenarios encompass three distinct
pathways:
— Central Scenario reflects Erste Group’s and BCR Group's baseline view on the expected development of its environment by
combining NGFS’ Below 2°C (EU) and Fragmented world (rest of the world).
— Delayed Transition assumes that the implementation of strong climate policies is stalled until 2030 ultimately leading to high
transition risk implications.
— Hot House World assumes that existing climate policies remain in place but there is no ambition to further strengthen them
leading to increasing physical risks.
The evaluation of transition and physical risks is based on the results of two adverse scenarios: delayed transition scenario for
transition risks and the Current Policies scenario for physical risks.
The Delayed Transition scenario examines the consequences of a rapid, disorderly shift to a low-carbon economy, where abrupt
policy shifts in 2030 trigger significant market disruptions in order to meet Paris Agreement target o limiting global warming to
well below 2 0 C( 7). Meanwhile, the Hot House World scenario models a future with minimal climate change mitigation, leading to
catastrophic physical risks such as extreme floods and wildfires. By evaluating its portfolio against these divergent pathways, BCR
Group ensures it is stress-testing under peak adverse conditions—strengthening institutional resilience and embedding climate risk
awareness into its core management framework.
It should be noted, that the resilience analysis is subject to uncertainties as it uses long‑term (up to 30 years) climate and
macro‑economic projections that depend on assumptions about future policies, technologies and how quickly the transition will
progress. Uncertainty also comes from the limited historical data for extreme climate events and from the sensitivity of the risk
models, which means actual impacts may differ from the estimates.
Scope of the resilience analysis
The analysis of transition risks covers clients including sovereigns, financial institutions, large corporates, SMEs and real estate
(commercial real estate and retail mortgages) and BCR Group’s own operations.
The analysis of physical risks covers loans collateralised by real estate (commercial and retail mortgages) and BCR Group’s own
and outsourced operations (i.e. headquarters and branches including critical facilities like data centers). While ESRS E1 identifies
28 distinct climate hazards, BCR Group has tailored its physical risk analysis to the specific vulnerabilities of its portfolio. By
mapping our assets climate scenarios, we have concentrated our strategic focus on the 5 most material hazards: drought stress, river
and coastal floods, drought stress and fire weather stress (increasing the likelihood of wildfire ignition). This targeted approach
ensures that our risk management resources are allocated to the most significant threats to our long-term stability.
The assessment of both risks is conducted over the short, medium and long-term horizons. The time horizons used for the physical
and transition risk assessments are as follows:
— short-term: up to 1 year
— medium-term: 1 to 5 years
— long-term: more than 5 years (for transition risk up to 2050, for physical risks up to 2100).
Description of the resilience analysis
The methodology for the transition risk assessment focuses on the impact of increasing (shadow) carbon prices on the financial
position of counterparties. This (shadow) carbon price encompasses a multitude of risk drivers related to transition risk and is
therefore a prudent way to quantify the risk impact. The modelling reflects the direct impact of a higher carbon price on
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counterparties as well as the indirect effects of macroeconomic developments. The macroeconomic parameters were derived from
the regulatory scenarios as well as the e conomic research departments of BCR Group and Erste Group and cover each critical sector
individually in a projection of the gross value added. The developments are based on each scenario’s narrative tailored to the
current economic starting points of key markets in which Erste Group operates, including Romania. Critical assumptions on
developments are therefore aligned to regulatory as well as scientific scenarios.
The physical risk assessment combines quantitative analyses which simulate extreme weather events like floods or fires to evaluate
portfolio resilience under adverse conditions:
— Comprehensive scenario analysis: As with the transition risk scenario analysis, the basis was represented by a NGFS scenario,
namely Current Policies. Additionally, two dedicated physical risk models were designed to simulate the direct effects of two
key climate-related hazards, namely riverflood and fire weather. The impact unfolds on the credit portfolio collateralized by real
estate (i.e. RRE, CRE) via loss given default shifts.
— Munich RE hazard data: The Location Risk Intelligence data on physical risks from Munich RE provides an extensive list of
hazards and climate-related variables like various time horizons as well as scenarios. BCR Group, in alignment with Erste
Group bases its risk materiality assessment of future time frames on the RCP 8.5 and SSP 5 scenario respectively, capturing
physical risk exposures under adverse conditions reflected by high-emission and fossil-fueled trajectories. Applying this severe
downside scenario guarantees a highly conservative approach in evaluating resilience to climate-related risks.
Results of the resilience analysis
The outcomes of the assessment coordinated by Erste Group performed in the third quarter of 2025 to evaluate the anticipated risk
exposure under adverse scenarios are as follows:
Transition Risk
— Credit Risk: The analysis conducted by Erste Group, with inputs provided by BCR Group, indicates notable exposure to
transition-induced credit risk across all time horizons, in case the transition to a low carbon economy occurs disorderly. The
transition risk on the credit risk exposure is driven largely by climate-related factors and drivers such as environmental taxation
and subsidies, regulatory requirements, energy and transport policies, behavioural changes of investors, consumers, suppliers
and employees as well as technological developments, while non-climate related drivers are immaterial. Looking towards
medium and long-term time horizons, these transition risks intensify, with impacts gradually spreading across an expanding
range of sectors. This scenario and its impact do not reflect Erste Group’s and BCR Group’s most likely or baseline scenario, but
serve as an exploratory analysis to assess the exposure to transition risk in the event of a disorderly and abrupt transition. Under
the baseline or orderly transition scenario, the direct impact of the transition risk drivers on both BCR Group and Erste Group is
significantly smaller and limited;
— Operational Risk: From an operational risk perspective, two of the most relevant transition risks have been identified in the
medium and long-term horizon. First, there is an increased risk of regulatory non-compliance due to rapidly evolving ESG
requirements and heightened regulatory oversight. Second, shifting behaviours and expectations of stakeholders (consumers,
suppliers and employees) regarding environmental performance create additional operational challenges that require careful
management. Both factors materially contribute to the overall operational risk profile;
— Market, Liquidity and Reputational Risk: The evaluation concluded that no material transition risks were identified across all
time horizons – short, medium and long-term.
The 2025 Climate & Environmental Scenario Analysis showed that under the short and medium term adverse scenarios, the largest
impact stems from a disorderly transition but it resulted in no breach of regulatory thresholds showing that the bank is well
positioned to withstand such adverse shocks. While long‑term projections indicate a higher concentration of losses within
carbon‑intensive sectors (such as Natural Resources and Commodities), BCR Group's capital position remains resilient throughout
the assessment horizon.
BCR Group has the ambition to achieve a net zero status of its portfolio by 2050. By following the strategy towards established
targets for key sectors, BCR Group’s exposure to climate-related transition risks is expected to decline. The decarbonization effect
becomes particularly evident in the medium term, as it significantly reduces the gross impact of the adverse scenario to an
immaterial level (especially in segments related to real estate), thereby underlining its strong contribution to BCR Group’s
resilience towards transition risks. Further information on the established decarbonization pathways can be found in chapter 'E1-4
Targets related to climate change mitigation and adaptation'.
Other components of the risk management framework that allow effectively manage and reduce exposure to transition risks
include various mitigation tools, such as enhancing the existing limit framework, strengthening underwriting standards, improving
monitoring processes and expanding ESG-related data collection.
Against the backdrop of having a resilient capital position and a comprehensive ESG Risk Management Framework, BCR
maintains the ability to adjust its strategy and business model to climate‑related developments across all relevant time horizons, if
deemed necessary. In the short term, the bank’s strong capital base and stable funding structure support ongoing access to finance
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at an affordable cost of capital. Over the medium and long term, BCR can realign its credit portfolio by supporting clients in their
transition towards more sustainable business models and operations. This is enabled by established internal policies and tools such
as the ESG Assessment Questionnaire and the Responsible Financing Policy, as well as by strengthened client dialogue on
sustainability topics. In addition, BCR promotes workforce adaptability through continuous reskilling initiatives and ESG‑related
training programs. These strategic adjustment levers ensure that the bank can realign its business model as climate‑related risks
and opportunities continue to evolve in line with developments within the real economy.
Physical Risk
— Credit and Strategic Risk: According to both BCR Group’s and Erste Group’s assessment, physical risks are a material driver for
long-term credit and strategic risk. In line with scientific projections climate-related physical hazards will materialize and
intensify from mid-century onwards, thereby impacting the portfolio and strategic position of BCR Group. However, in the
short and medium term, physical risks are considered immaterial due to BCR Group’s limited exposure to regions or sectors
that are particularly vulnerable;
— Operational Risk: For internal operations, physical risks are a material driver in the long-term (up to the year 2100), from heat
waves potentially impacting BCR Group’s operations;
— Market, Liquidity and Reputational Risk: The evaluation concluded that no material physical risks were identified across all
time horizons – short, medium and long-term.
E1-1 - TRANSITION PLAN
BCR Group has the ambition to achieve a net zero status of its portfolio by 2050. Our Group’s net zero 2050 ambition is closely
interlinked with regulatory developments at both EU and national levels and will be accompanied by actions that reflect these
evolving frameworks, methodologies and targets. As the EU further defines its commitments, the BCR Group will progressively
align its approach to support and follow these developments.
BCR Group alongside Erste Group has been developing its prudential transition plan in line with the requirements under the
Capital Requirements Directive (CRD VI). Due to different legal requirements and timing there is currently no intention to develop
an overall transition plan fully aligned with a 1.5‑degree pathway. Erste Group's transition plan under the Capital Requirements
Directive, which is also assumed by BCR Group, focuses on assessing and managing financial risks arising from nature and climate
risks, providing strategic direction, including decarbonisation targets and implementation measures to support proper risk
decisions. Work on this integration began in 2025 and BCR Group alongside Erste Group continues to strengthen the alignment
between its sustainability strategy and prudential risk management, ensuring consistency across regulatory frameworks and
internal planning processes.
As part of its ambition to support the transition to a sustainable economy, BCR Group aims to support clients and sectors towards
decarbonisation, while also reducing emissions from its own operations. This is fully integrated into BCR Group’s overall business
strategy and financial planning, ensuring that decarbonisation efforts are part of decision-making processes. BCR Group
emphasises continuous engagement with clients across various industries to support their transition and manage climate-related
risks. BCR Group integrates emission reduction targets into its business strategy to support both the clients’ transition and the
Bank’s sustainability goals. Furthermore, BCR Group monitors portfolio developments and client progress quarterly. This process
includes assessing the impact of client engagements, adjusting strategies and implementing necessary measures. Progress is
reported regularly to the Management Board and Supervisory Board.
More information on the respective policies, actions and targets can be found in sections E1-2 Policies and transition measures for
climate change mitigation and adaptation', 'E1-3 Actions and resources in relation to climate change policies' and 'E1-4 Targets
related to climate change mitigation and adaption'.
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E1-2 – POLICIES AND TRANSITION MEASURES FOR CLIMATE CHANGE MITIGATION
AND ADAPTATION
BCR Group’s policies to transition to a sustainable economy focus on targets for financing activities, which are endorsed and
supported by the management.
AT A GLANCE: ADDRESSING IMPACTS, RISKS AND OPPORTUNITIES

Impacts, risks and opportunities | Strategy / Policy | Key decarbonisation lever and actions | Targets
For BCR Group, additional financial opportunities may arise from investments in and the financing of clients to support their transition to sustainable business initiatives, and subsequently, the implementation of decarbonisation measures. (Opportunity Climate Change Mitigation) Through the financing of renewable energy projects, energy grid infrastructure and supply side flexibility (e.g. battery storage) BCR Group supports energy security, enables CO2-neutral power and contributes to the systemic shift towards a sustainable economy. (Pos. Impact Energy) BCR Group's financing of renewable energy projects (e.g. wind and solar projects, battery storage) and energy transition enables neutral/ low CO2 energy production and offers new opportunities for the portfolio. (Opportunity Energy) | Sustainable Finance Methodology | Lever: Promoting a sustainable real estate sector Lever: Financed emissions reduction in the energy sector Lever: Client engagement framework | 15% sustainable retail mortgages by 2027 25% sustainable corporate financing by 2026
BCR Group faces a higher credit risk as climate-related physical risks can lead to a devaluation of collateral and/or to negative effects on the business models and lastly financial stability of debtors. The consequences are increased risk provisions for BCR and connected negative impacts to its P&L and own funds. (Risk Climate Change Adaptation) Additional financial opportunities might be captured by BCR from financing of strategies/projects conducted by a wide array of entities, from local SMEs to large companies (e.g adaptation solutions for residential and commercial real estate, agriculture), municipalities and other public entities for adaptation infrastructure. (Opportunity Climate Change Adaptation) | BCR Real Estate Financing ('REF') Policy | Lever: Promoting a sustainable real estate sector Lever: Financed emissions reduction in the energy sector | Portfolio decarbonisation target
The CO2 emissions of BCR Group in the upstream value chain and in own operations contribute to climate change and thus to global warming.(Negative Impacts Climate Change Mitigation) Until the assumed net zero targets for own operations are achieved, the energy (electricity, fuel and heating) used by BCR continues to generate CO2 emissions and therefore contributes to climate change. Also, a potential slow progression on the adoption of renewable energy (either purchased or self-generated) may lead to a higher contribution to any risk associated with climate change, physical or transitional. (Negative Impact Energy) BCR's financing of energy-intensive industries may lead to increased greenhouse gas emissions, thereby influencing climate change and global warming trends.(Negative Impact Energy) | BCR Group Responsible Financing Policy BCR Corporate Lending Policy | Lever: Promoting a sustainable real estate sector Lever: Financed emissions reductions in the energy sector Lever: Emission reduction in own operations Lever: Client engagement framework | Portfolio decarbonisation target Net zero operations target
Price instability on the energy market due to climate change can result in decreased profitability in companies in energy-intensive sectors as well as liquidity shortage of retail clients, leading to a higher default risk and a related increase in risk provisions for BCR, impacting P&L as well as own funds. (Risk Energy) | BCR Retail Credit Risk Management Policy BCR Corporate Lending Policy BCR Real Estate Financing (REF) Policy | Lever: Promoting a sustainable real estate sector Lever: Financed emissions reduction in the energy sector Lever: Client engagement framework | Portfolio decarbonisation target
BCR faces a higher credit risk as climate-related transition events (regulatory interventions) can lead to negative effects on the profitability of business models and lastly the financial stability of debtors. The consequences are increased risk provisions for BCR and connected negative impacts to its P&L and own funds. (Risk Climate Change Mitigation) | BCR Retail Credit Risk Management Policy BCR Corporate Lending Policy | Lever: Promoting a sustainable real estate sector Lever: Financed emissions reduction in the energy sector | Portfolio decarbonisation target

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Concerning all policies, an ongoing dialogue is conducted with relevant stakeholders such as supervisory and regulatory
authorities, investors, analysts and rating agencies as well as academic institutions and NGOs. Inputs from these stakeholders were
received through bilateral talks, conferences and supervisory dialogues regarding climate change, and are consequently used in
BCR Group’s policy setting process. For more details on consideration of interests and views of stakeholders please refer to chapter
'SBM-2 - Interests and views of stakeholders'.
The below mentioned policies are developed at Erste Group level and are implemented or applied by BCR Group.
SUSTAINABLE FINANCE METHODOLOGY (SFM)
Policy objectives to address impacts, risks and opportunities
BCR Group’s primary environmental impact stems from its lending activities, specifically the emissions generated by the projects it
finances. BCR Group, through its financing activities, plays an important role in facilitating the transition to a low-carbon economy
and it is actively engaging with its clients, and supporting them, on their decarbonisation journey. Considering the climate crisis,
this means mobilizing funds to create a fairer and more prosperous world for all, and contributing to a sustainable future. The SFM
outlines the methodology for classifying sustainable financings, focusing on renewable energy and energy efficient buildings, as
well as sustainable activities (for more details see chapter 'SBM-1 – Strategy, business model and value chain').
The Sustainable Finance Methodology and thus BCR Group’s sustainable financing is a classification that primarily addresses its
opportunities and positive impacts and, under certain conditions, may contribute to its decarbonisation targets:
— BCR Group's financing of investments into renewable energy projects (e.g. energy from renewable energy sources such as wind
power and solar energy, battery storage) enables CO2e-neutral energy production and offers new opportunities for the portfolio.
— BCR Group's financing of other energy transition projects enables low carbon energy production, which is necessary for a low
carbon economic system within the planetary boundaries.
— BCR Group’s additional financial opportunities arise from other sustainable investments (ex. circular economy, sustainable
transportation) and the financing of customers supporting their decarbonisation and transition to a sustainable business state.
— Through the financing of climate-change adaptation solutions, BCR Group might gain additional financing opportunities whilst
contributing towards reducing vulnerabilities to climate change impacts.
Sustainable Financing has demonstrable impact on decarbonization in real estate and energy sectors:
— in real estate, financing energy-efficient properties significantly reduces emissions intensity compared to traditional financing,
reinforcing the alignment between sustainable finance and climate objectives.
— in the energy sector, renewable energy financing inherently supports climate mitigation by replacing fossil-based generation,
thus entailing environmental benefits. These projects are systematically prioritized and tracked within BCR Group's portfolio,
reflecting our commitment to energy transformation and the expansion of clean energy solutions. In case of project finance,
BCR Group assumes that renewable energy projects (wind, solar, geothermal and hydropower) have an emission factor for
Scope 1 and 2 of zero (see section 'Methodology Business Loan, Corporate Bonds and Project Finance' under E1-6 'Gross Scopes
1, 2 , 3 and Total GHG Emissions').
Actions, metrics and targets related to Sustainable Financings are partially linked with material impacts, risks and opportunities
(IROs) outlined in chapter 'E1 SBM-3 - Material impacts, risks, and opportunities and their interaction with strategy and business
model'.
Methodology
‘Sustainable financing’ is a term used by BCR Group to determine financings that address the interplay of BCR Group’s identified
environmental impacts and opportunities and aligned with Erste Group sustainable finance methodology.
This involves screening and evaluating BCR Group’s financed portfolio in accordance with a bespoke approach and set of criteria,
grounded in the principles of established standards and frameworks. With the decarbonisation levers of “promoting a sustainable
real estate sector”,“reduction of financed emissions in the energy sector”, 'emission reduction in own operations', as well as 'client
engagement framework' (presented in section 'E1-3 Actions and resources in relation to climate change policies'), BCR Group’s
sustainable financings have a primary focus on:
Real estate financings:
— energy efficient buildings with energy-efficient indicators in the Energy Performance Certificate (e.g. EPC label A).
— buildings meeting the requirements for a ‘nearly zero energy building’ (NZEB) according to EU Directive 31/2010.
This methodology is explained in chapter 'E1-4 - Targets related to climate change mitigation and adaption'.
Renewable energy projects financings:
— supporting the fulfillment of decarbonisation via financing transition technologies, the shift to renewable energy sources,
battery storage capacities, upgrades of the transmission and distribution networks.
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Further details on the screening approach and the criteria can be found in chapter 'E1-4 - Targets related to climate change
mitigation and adaption'. In addition, the above-mentioned decarbonisation levers are contributing to the achievement of the target
that are explained in chapter 'E1-3 - Actions and resources in relation to climate change policies'.
The Sustainable Finance Methodology provides the framework for classifying sustainable financings that support climate transition
of BCR Group's clients and complementing the achievement of 15% sustainable mortgages by 2027 and reaching the goal of 25%
sustainable corporate financing by 2026. Through this, BCR Group continues to maintain its prominent role in sustainable
financings (see SMB-1 for more details on strategic priorities).
Methodology outlook for 2026
This methodology is being refined to better support decarbonization targets. The focus of Sustainable Financing will be broadened
to include a wider range of impactful activities and sectors, making it more relevant and connected to market developments.
Beyond energy-efficient buildings and renewable energy the refined approach will for example include, among others, low-carbon
manufacturing, water use and efficiency improvements across all sectors. The updated methodology remains anchored in
established standards and robust governance, with ongoing stakeholder engagement ensuring alignment with market expectations.
The new approach will be implemented starting 2026.
Scope
The methodology set out in the SFM applies to BCR, as defined in chapter 'E1-4 Targets related to climate change mitigation and
adaption'. The policy covers customer groups that currently fall outside the scope of EU Taxonomy mandatory disclosure
requirements, such as SMEs. It explicitly accounts for their limited reporting infrastructure, allowing for simplified data collection
methods where formal sustainability disclosures are not yet available. The Sustainable Finance KPI are applicable to corporate and
retail business lines of BCR. BCR’s Sustainable Financing KPI is an internal remuneration-linked metric and must not be confused
with the Green Asset Ratio (GAR) KPI under the EU Taxonomy. BCR’s Management Board does not have a GAR ratio KPI.
The BCR Head of Sustainability Department is accountable for approving and implementing the policy in BCR. The methodology
was not yet formally transposed into a BCR policy in 2025. The methodology is only available internally, but elements of it such as
the criteria for sustainable financing, are discussed with clients during the regular ESG dialogues carried out by BCR.
BCR GROUP RESPONSIBLE FINANCING POLICY
Policy objectives to address impacts, risks and opportunities
The BCR Group Responsible Financing Policy outlines industry-specific ESG exclusion and phase-out criteria, including thresholds
and guidelines for determining transaction eligibility to prevent ESG related credit and reputational risk. It also defines non-
financial risk profiles that trigger detailed due diligence and scrutiny. Additionally, the policy describes assessment procedures for
specific sectors and subsectors to ensure informed decision-making aligned with the commitment to providing responsible
financing services.
Thus, the policy supports the achievement of the portfolio 2050 decarbonisation targets. To reach this target, BCR Group has
implemented a structure and governance framework for the execution of decisions under the BCR Group Responsible Financing
Policy.
In 2025, a revision process for the BCR Group Responsible Financing Policy was started, with the goal to support a responsible
energy transition. BCR Group is committed to phase out coal financing by 2030 in alignment with the National Energy and Climate
Plan (NECP). An extension to 2035 applies exclusively to existing power‑generation and heat‑and‑steam clients that already have a
defined exit plan targeting the same year.
Another change foreseen is driven by other priorities in the context of defense. Due to the significantly changed geopolitical
environment, the strategic importance of the defense sector in Europe has fundamentally shifted. Financial institutions are now
expected to contribute to collective security, industrial resilience and defense readiness, as outlined in the EU White Paper 'Defense
Readiness 2030'. This will be reflected in the changes towards the eligibility criteria of financing defense sector.
Methodology
The existing policy mandates a two-tier review process. To comply with the requirements of the policy, the deal originator must:
— seek a dedicated dialogue with high-emitting clients. This typically starts with an industry and client-specific assessment of ESG
issues, to identify sustainable finance instruments that match the client’s sustainability and funding strategy.
— additionally collect relevant information and documents related to the specific deal.
— assess the non-financial risks in line with the BCR Group Responsible Financing Policy, and propose corresponding follow-up
measures if necessary.
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The second review is carried out by the Sustainability Department and Non-financial Risk Management (NFR) function. They
ensure that all respective risks are identified, assessed, measured, monitored, managed and properly reported by the Business Units
in the first line of defense and, in case it becomes relevant, guide the deal originator and associated employees through the specific
NFR process required by the deal in question.
BCR Group defines exclusion criteria for the energy sector, defense, as well as gaming and gambling sector, and additionally covers
the topic of biodiversity to advance the management of environmental and climate risks as well as energy security of actual energy
transition projects. These energy sector principles are based on accepted industry principles and acknowledged by various
stakeholders as best practice. These principles are also aligned with BCR Group´s commitment to reduce carbon emissions as BCR
Group recognizes the strategic importance of renewable energy and energy efficiency projects.
Scope
The policy applies to on and off-balance sheet transactions of BCR, and BCR Leasing IFN S.A., and has no application for BCR
Group’s upstream value chain.
All products and services in the Corporates segment for BCR Group financing entities are in the scope of this policy, no matter
whether the financing is direct or indirect, on- or off-balance-sheet financing and whether financial risks are linked to it or not.
A client company/group is considered within the scope of the policy if the economic activity in scope of the deal accounts for more
than 5% of the group's turnover, unless otherwise specified. Not in scope of this policy are all retail business line products (except
for defense transactions), single payment transactions, transactions below a threshold of EUR 1 million within an already approved
limit (except for defense transactions) and “Responsible Investments” (including Erste Asset Management). For transactions
managed by Financial Institutions Department below a threshold of EUR 0,5 million within the approved limit, compliance with
the BCR Group Responsible Financing Policy is assessed by the Business line.
The BCR Group Responsible Financing Policy, including any amendments or updates, is subject to formal approval by the
Management Board. This policy is owned by the Sustainability Department and is made available on the internal website of BCR
Group; relevant external stakeholders are provided upon request with this document via e-mail. By adhering to this policy, BCR
Group commits to respect the demands by the Paris Agreement as well as the EU taxonomy.
BCR RETAIL CREDIT RISK MANAGEMENT POLICY
Policy objectives to address impacts, risks and opportunities
Higher operational costs and capital expenditure of clients to align to increasing standards due to climate change can result in
decreased profitability for companies in energy-intensive sectors, as well as liquidity shortage of retail clients. Also, BCR Group
faces a higher credit risk as climate-related transition events can lead to negative effects on the profitability of business models and
the financial stability of debtors. For BCR Group the consequences include increased risk provisions, which result in adverse effects
on both the profit and loss statement and own fund s. The policy supports the achievement of the 2050 portfolio decarbonisation
targets. Decarbonisation levers primarily contributing are the emission reduction in the energy sector as well as the promotion of a
sustainable real estate sector (see chapter 'E1-3 - Actions and resources in relation to climate change policies' for more details). For
a detailed understanding of the CO 2 e metrics associated with financed emissions, chapter 'E1-6 - Gross Scopes 1,2,3 and Total GHG
Emissions' provides comprehensive results for the current and prior years.
Methodology
The policy requires BCR Group lending entities, to collect and store sustainability data, which can be obtained through an EPC of
the financed object or an alternative method of assessing energy classification. If no energy classification information is received,
the worst category of the available energy performance scale is assumed for the loan decision. The policy includes special lending
conditions based on the energy efficiency values of the objects being financed. These conditions acknowledge that objects with
lower energy efficiency are more likely to incur higher future maintenance and investment costs, which could impact the
repayment capacity of customers and represent a credit risk. Higher energy efficiency, evidenced by an EPC, means a lower carbon
footprint for the building. Thus, for retail mortgages, the pricing is linked to energy efficiency of the real estate collateral, higher
energy efficient purchases are incentives with interest rate discounts, on the entire loan lifetime.
Within BCR's lending process, housing loan recommended parameters are differentiated by product type to reflect specificities such
as Energy Performance Certificate (EPC) levels. Consequently, each product type is assigned a specific minimum application score
and minimum income requirement, which determine a client's eligibility for a higher-than-standard maximum Debt Service to
Income (DSTI) ratio.
Scope
The scope of the policy applies to BCR Group’s entities that are engaged in lending to private individuals and micro entities. The
Chief Risk Officer (CRO) of BCR is responsible for the implementation of the policy and ensuring that majority-owned subsidiaries
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also comply with the requirements of this policy. The policy, available internally, covers the entire end-to-end retail credit cycle,
which includes loan granting, portfolio management and collections. There are no explicit exclusions mentioned in terms of
activities or the upstream and down-stream value chain.
By adhering to this policy, BCR Group also follows the European Banking Authority (EBA) guidelines on loan origination and
monitoring, the EU GDPR and KYC (Know Your Customer) requirements, as well as the regulation and recommendations issued
by the National Bank of Romania. This policy is available to internal stakeholders and it has also been communicated to the
National Bank of Romania.
BCR REAL ESTATE FINANCING POLICY
Policy objectives to address impacts, risks and opportunities
BCR benefits from the financial opportunities that arise from the financing of and investments into companies that offer solutions
for climate change adaptation and the funding of adaptation solutions in the real estate market (commercial real estate). However,
BCR also considers climate-related physical risks that can lead to a devaluation of collaterals and/or to negative effects on the
business models and financial stability of debtors. The consequences are increased risk provisions and negative impacts on BCR
profit and loss statement and own funds. For this reason, BCR Real Estate Financing Policy requires a sustainability assessment for
real estate financing projects before making a credit decision. Financing assets with high CO2 emissions which are considered high
or medium risk are subject to stricter lending clauses. In doing so, the policy contributes to the achievement of the 2050 portfolio
decarbonisation targets. One of the most important mechanisms for decarbonisation that is instrumental in attaining the policy's
objectives is focused on ‘promoting a sustainable real estate sector’ (see chapter 'E1-3 - Actions and resources in relation to climate
change policies' for more details). As part of the Real Estate Financing Policy, BCR Group supports the adherence to recognized
international sustainability standards and initiatives. When assessing real estate financing, the technical screening criteria and ‘Do
No Significant Harm’ principles of the EU Taxonomy Regulation are taken into account where applicable. Detailed CO2 e results for
financed emissions, covering the current year, are available in chapter 'E1-6 - Gross Scopes 1,2,3 and Total GHG Emissions'.
Methodology
With regards to the monitoring process, the policy requires an assessment of energy efficiency, physical risk (e.g. flooding, drought
etc.) and the CO2e value of the asset. It requires a Technical Due Diligence report, which includes the documentation of the
following areas:
— Global Warming Potential for the life cycle of the building
— ESG Report
— Sensitive flood areas
— Energy Performance Certificate
— Energy Consumption
— Photovoltaic system
— Energy supply contracts on renewable/non-renewable energy sources and Environmental report and strategy on climate risks
and weather
Scope
The scope of the policy encompasses all real estate financing transactions with corporate clients or client groups, regardless of
segmentation criteria. It covers BCR`s Commercial Real Estate segment, all specialized lending income-producing real estate clients
and clients with certain codes in the 'Nomenclature Statistique des Activités Economiques dans la Communauté
Européenne' ('NACE') related to the corporates segment or the industry segments of Real Estate or Hotels and Leisure.
The BCR Management Board is accountable for approving and implementing the policy. The policy is available to internal
stakeholders on the internal website of BCR Group.
BCR CORPORATE LENDING POLICY
Policy objectives to address impacts, risks and opportunities
BCR Corporate Lending Policy defines group-wide rules and principles for corporate lending to ensure sound credit risk
management, responsible banking and standardised client creditworthiness assessments. The policy supports managing risks
stemming from energy and climate change mitigation by conducting a comprehensive ESG assessment of corporate clients and
SME's with transferable securities to trading on an EU regulated market. BCR Group may face higher credit risk caused by climate-
related transition events that can lead to negative effects on the profitability of business models and the financial stability of
debtors. The consequences are increased risk provisions for BCR Group and connected to negative impacts to its profit and loss
statement and own funds. For example, price instability in the energy market due to climate change can result in decreased
profitability in companies belonging to high emitting sectors. By managing these risks, the policy supports the BCR Group’s
portfolio decarbonisation targets and potential subsequent emission reduction. The key decarbonisation lever contributing to
achieving the policy’s target is ‘emission reduction in the energy sector’(see chapter 'E1-3 - Actions and resources in relation to
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climate change policies' for more details). Detailed CO2e results for financed emissions, covering the current year, are available in
chapter 'E1-6 - Gross Scopes 1,2,3 and Total GHG Emissions'.
If clients are exposed to increased sustainability risks, these must be properly assessed with respect to their financial position in the
credit application and considered in the final lending decision as well as the rating. For large corporates in certain industries that
lack a climate transition plan and do not measure the current emissions, any new transaction including a policy exception must be
approved according to specific Approval Authorities regulation. This ensures that material sustainability matters are integrated into
the lending process and encourages clients to adopt sustainable practices. Additionally, ESG assessments are updated annually to
reflect any changes in the client's ESG risks.
Methodology
The evaluation of the client performance or solvency includes an assessment of its financial metrics and their engagement in
mitigation activities. ESG assessment questionnaires are used during the lending process to evaluate climate change mitigation
risks and how ESG factors may positively (mitigation) or negatively (risks) impact the financial performance or solvency of the
client. The Large Corporate clients, the SMEs with transferable securities to trading on a EU regulated market, the State Owned
Enterprises with annual consolidated turnover > EUR 50 mn and Real Estate Clients are required to share their carbon footprint as
well as their carbon offsets during the ESG Questionnaire assessment. In addition, the client’s energy mix and efficiency are
analysed. A more sustainable energy mix and higher energy efficiency contribute positively to the client’s overall performance
evaluation.
Scope
The policy is also applicable to BCR Leasing IFN SA subsidiary and covers all corporate clients (LC, SME, CRE, Corporates owned
by Sovereigns or Sub-Sovereigns and public sector). The policy explicitly excludes clients involved in suspicious and illegal activities
or controversial industries as well as pure financial holdings without transparency and captive/ offshore companies).
By adhering to this policy, BCR complies with the EBA Guidelines on loan origination and monitoring. The Management Board is
accountable for the implementation of the policy. The policy is made available internally on the intranet.
E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES
The energy and real estate sectors in BCR Group’s portfolio are key to its decarbonisation efforts. To achieve its 2050 net zero
emission ambition, BCR focuses on four portfolio decarbonisation levers that comprise several already implemented key actions.
For a more comprehensive understanding of the CO2e results pertaining to financed emissions, please consult chapter 'E1-6 - Gross
Scopes 1,2,3 and Total GHG Emissions'. The current and future operational and capital expenditures incurred to implement the
below actions are immaterial amounts.
To achieve our net-zero own operations target, BCR has defined a separate decarbonisation lever which is broadly related to
employee mobility, enhancing building energy efficiency, and switching to low-carbon energy sources.
DECARBONISATION LEVER ‘PROMOTING A SUSTAINABLE REAL ESTATE SECTOR’
BCR aims to reduce its financed emissions by increasing sustainable financing in the real estate sector through two main enablers,
its Financial Health Commercial Real Estate Tool to track the carbon footprint of commercial real estate portfolios and the
development of Renovation Financing solutions to assess its client’s home renovation need and energy efficiency.
Successfully motivating clients to take measures to improve the energy performance of the buildings they own, financed by the
Group, contributes to reducing financed emissions in absolute terms if higher emission-loans mature. As a result, it contributes to
the achievement of the portfolio decarbonisation targets by 2050. The effectiveness of actions under this lever further is assessed
based on the attainment of the 25% sustainable corporate financing target and the 15% sustainable mortgage target (see chapter
'E1-4 - Targets related to climate change mitigation and adaption' for more details on targets).
Enabler 1: Financial Health Commercial Real Estate Tool
BCR applies the Financial Health Commercial Real Estate Tool, which was developed at Erste Group level, to enhance client
engagement, provide greater transparency and improve the overall quality of its portfolio. It is expected that this instrumen t will
have a positive impact on climate change mitigation by enabling the identification and promotion of energy-efficient building
practices. By integrating asset-level data on energy performance and greenhouse gas (GHG) emissions, the tool allows both the
Bank and its clients to actively track and manage the carbon footprint of commercial real estate portfolios. The tool raises client
awareness and encourages the adoption of renewable energy solutions, such as on-site solar power generation or green electricity
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procurement. With this initiative, BCR aims to enhance energy efficiency and reduce carbon emissions within its commercial real
estate holdings.
The Financial Health Commercial Real Estate Tool integrates client asset KPIs with benchmark values derived from Erste Group's
portfolio data, internal policies and GHG thresholds. For instance, BCR compares client EPCs with other client assets in the
portfolio (EPC values of CRE assets). A pre-defined CO 2e threshold allows BCR to identify assets that are desirable in terms of CO2e
emissions and are aligned with its portfolio reduction pathway. The tool enables clients to visualize their projects, compare them
with other portfolio projects and place them within the context of BCR 's commercial real estate decarbonisation pathways.
The screening of each client within the portfolio is currently underway and will continue throughout 2026. The primary objective is
to engage with all relevant commercial real estate clients, using available underlying asset information. As a result, the Financial
Health Real Estate Tool indirectly contributes to climate change mitigation and GHG reduction by facilitating the identification
and promotion of energy-efficient building practices among clients.
Enabler 2: Renovation financing
To support the energy efficiency transition in residential properties, BCR Group is planning to further provide its retail clients with
dedicated products to accommodate their home renovation needs. BCR launched the Casa Mea Natura loan in August 2021, which
is dedicated for energy efficient homes. This product can be accessed providing that an energy performance certificate (EPC) A or
B, issued based on the most recent methodology in place at national level, is available.
BCR focus will remain on further supporting renovation efforts of our clients, and identifying new dedicated products and
partnerships. Over the long term, BCR intends to introduce new products designed to support the increase of energy efficiency in
buildings. Also, BCR will continue its actions aimed at enhancing the EPCs collection for its portfolio private individuals secured
loans by focusing on the implementation of tailored campaigns. The expected results include increased client engagement via
various channels, with more homeowners adopting energy-efficient renovation measures and have an EPC issued.
By developing and implementing new financing solutions, BCR shall continue to support its clients in enhancing the energy
efficiency of their homes, thereby promoting sustainable housing solutions. Additionally, clients are encouraged to access subsidy
programs and to receive financing options, leading to better utilization of energy-saving technologies such as solar panels, heat
pumps and home insulations. Where financially viable and credit risk parameters are met, BCR is easing the time to cash for
customers to receive financing for energy upgrades. This measure supports the implementation and fulfillment of the Retail Credit
Risk Policy and the SFM. It contributes to the achievement of the target ‘sustainable retail mortgages’ as outlined in the table
‘Sustainable financing – actuals and targets’ in chapter E1-4 'Targets related to climate change adaptation and mitigation'.
BCR Group proactively engages with clients, offering renovation calculation and financing options through various channels. By
leveraging the renovation calculator and associated financing solutions, BCR Group supports clients in enhancing the energy
efficiency of their homes, thereby promoting sustainable housing solutions. The effectiveness of this initiative will be monitored by
the granted renovation loans.
Scope of the decarbonisation lever
The Financial Health Commercial Real Estate Tool was implemented by BCR Group, with the screening of all existing stock assets
expected to be completed in the short to medium term. The tool focuses on downstream value chain and addresses the commercial
real estate portfolio of BCR. The Renovation Financing will apply to the downstream value chain of BCR Group, focusing on retail
mortgage clients, particularly targeting those with high energy intensity. Detailed CO2e results for financed emissions, covering the
current year, are available in chapter 'E1-6 - Gross Scopes 1,2,3 and Total GHG Emissions', tables Financed emissions and Financed
emissions by data quality.
The actions under the decarbonization lever ‘Promoting a sustainable real estate sector’ have been considered particularly for short
and medium term, but in light of the decabonization targets set, these are to be further enhanced as to be used on a long-time
horizon as well. For the implementation of these actions, resources from Corporates, Retail, Risk and Sustainability teams are
allocated.
DECARBONISATION LEVER ‘FINANCED EMISSIONS REDUCTION IN THE ENERGY SECTOR’
BCR aims to reduce its financed emissions in the energy sector by increasing sustainable financing for renewable energy projects
and by reducing its loan portfolio in the coal sector. The contribution to decarbonisation targets significantly depends on the nature
of the financed company. For instance, a coal or a conventional fuels-reliant company that utilises the financing to implement
adaptation solutions (e.g. such as wind parks) can thereby reduce its reliance on fossil-based technology.
This lever contributes to the decarbonisation of BCR’s energy portfolio and is in line with the Sustainable Finance Methodology
which defines sustainable investments that contribute to climate-neutrality as well as the BCR Group Responsible Financing Policy
which sets exclusion criteria for harmful socio-environmental economic activities, such as investments into specific carbon-
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intensive energy activities. Additionally, it contributes to the objectives of the BCR Corporate Lending Policy. Therefore, this
decarbonisation lever addresses the IROs of these policies as outlined in chapter 'E1-2 - Policies and transition measures for climate
change mitigation and adaptation'. The actions of this lever support the policies’ objectives such as the 2050 net zero portfolio
ambition, as well as the 25% sustainable corporate target. The achievement of the policies’ targets is outlined in chapter 'E1-4 -
Targets related to climate change mitigation and adaption'.
Through the key actions ‘renewable energy financing’ and ‘reducing coal financings’, investment in, and financing of energy-
intensive energy companies will be reduced, while financing renewable energy projects enables CO2e-neutral energy production,
which is necessary for the transition to a low carbon economic system within sustainable boundaries, offering new clean energy
opportunities for BCR's portfolio.
Key action 1: Renewable energy financing
BCR's renewable energy financing aims to increase the share of sustainable financing for projects that support the transition to
cleaner energy sources, contributing to the adoption of renewable energy solutions, including wind, solar and battery storage. The
anticipated impact includes an increase in financing for renewable energy projects and a reduction in financed emissions from the
energy and heat production sectors, particularly if fossil-reliant companies transition to cleaner energy technologies. This initiative
is a key measure contributing to the fulfillment of BCR Group's Sustainable Finance targets and goals.
As of year-end 2025, renewable energy producers exposures for 75% of the total electricity production portfolio in BCR Group. The
renewable energy exposures are assigned a zero-emission intensity and relate to specific-purpose financing activities in renewable
energy generation, such as wind and solar projects.
This portfolio distribution reflects BCR Group commitment to the energy transition and its strategic focus on supporting the
expansion of renewable energy infrastructure. By maintaining a significant share of renewable energy financing, BCR Group
contributes to decarbonisation efforts and advances the transformation toward a low-carbon electricity system.
Key action 2: Reducing coal financings
In line with its Responsible Financing Policy, BCR Group is committed to progressively reduce its financing of thermal coal mining
and thermal coal-based power generation, phasing out coal financing by 2030 in alignment with the National Energy and Climate
Plan (NECP) of Romania (with an extension period until 2035 for existing clients within heat and steam, as well as power
generation if certain conditions are already in place such as the adoption of a credible transition plan for the exit until 2035). For
the oil and gas sector, BCR Group has committed to avoiding any expansion of financing for oil and gas exploration unless it is
crucial for independence from Russia, and is indispensable for national energy security within Europe. Gas-fired generation and
related infrastructure may still serve as transitional solution and may be financed as long as they also meet the criteria set out in the
EU Taxonomy.
BCR actively engages with all clients exposed to thermal coal, focusing on understanding their transition plans. It analyses all
clients in this sector in-depth during the annual review process to assess and align their transition plans with the bank's 2050 net
zero ambition. This includes identifying clients with over 25% of revenues from thermal coal and requiring them to present a
credible, time-bound exit plan. BCR ensures that its engagement focuses on helping oil and gas sector clients adopt environmental
action plans and decarbonisation strategies. On one hand, this includes avoiding financing for extraction in unconventional sectors.
On the other hand, BCR is prioritising engagements of high emitting clients, who are part of their sector’s decarbonisation targets,
to assess their transition plans including the necessary CapEx investments.
Through the implementation of the two outlined measures, this initiative will result in a substantial reduction in financed
emissions intensity. Renewable energy financing currently constitutes the second-largest component of the Bank's 25% sustainable
financing target. Following commercial Real Estate Financing Policy, it is the most significant contributor to the reduction of
financed emissions. Romania’s coal phase-out strategy is expected to achieve a notable reduction in financed emissions associated
with fossil fuels. Focusing on specific-purpose financing in renewable technologies, such as wind, solar and hydro, will further
reduce BCR’s financed emissions and significantly contribute to the 25% corporate sustainable financing target.
Additional information on the achieved GHG reductions can be found in table ‘Portfolio Decarbonisation Targets, with particular
emphasis on the electricity production sector.
Scope of the decarbonisation lever
The scope of the 'Sustainable Financing for renewable energy' measure covers the downstream value chain of BCR Group,
specifically targeting renewable energy projects in the energy and heat production sectors. The implementation of the sustainable
financing measure for renewable energy is designed for a long-term period.
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The actions under the decarbonization lever ‘Financed emissions reduction in the energy sector’ have been considered particularly
for short and medium term, but in light of the decarbonisation targets set these are to be further enhanced as to be used on a long
time horizon as well. For the implementation of these actions resources from Corporates, Retail, Risk and Sustainability teams are
allocated, and the effectiveness of the action is determined based on the financed emissions and coal exposure trends.
DECARBONISATION LEVER 'CLIENT ENGAGEMENT FRAMEWORK'
The client engagement framework is a holistic approach that is aimed to support the shift of the clients belonging to sectors not
included in BCR Group’s toward low‑carbon business models while ensuring alignment with our portfolio decarbonization targets.
The client engagement framework represents the toolkit consisting of several elements such as ESG Assessment Questionnaire,
Responsible Financing Policy and Sustainable Finance Methodology. While the later tool provides a framework for classifying
sustainable financings that support climate transition of BCR Group clients, the questionnaire facilitates data collection on the
environmental footprint of large corporate and commercial real estate, thus enabling the Group to identify clients which are prone
to environmental, climate, social and governance risks. It is updated at least annually and allows us to assess the impact of ESG
factors on credit risk. Thus, BCR Group focuses on evaluating the transition plans of the clients and aligning them with the sector’s
decarbonisation targets.
In 2025, the ESG Assessment has been broadened to place greater emphasis on the resilience of ESG risks, such as transition risk,
and now also takes into account clients’ susceptibility to physical and nature-related risks.
The process follows a structured three-phase approach consisting of: (1) clients assessment and selection, (2) engagement and
dialogue and (3) monitoring. The client selection process for BCR Group was finalised in Q4 202 5, enabling our teams to engage
with the clients following the lending processes throughout the year 2026. The revised framework will further contribute to BCR's
Group engagement with clients in the transition journey using a strategy tailored to their maturity. Moreover, the framework will
ensure that ESG considerations are systematically integrated into client relationships, credit processes and portfolio steering.
Through this framework, BCR Group aims to act as a trusted partner for its clients, enabling them to navigate the challenges of the
green transition while safeguarding financial stability. By combining risk management with financing solutions, BCR Group
contributes to a sustainable economy and long-term value creation for all stakeholders.
Scope of the decarbonisation lever
The ‘Client Engagement Framework’ lever was developed for large corporate clients within BCR Group’s lending portfolio. The
client engagement approach will enable us to gain deeper insights into BCR Group's clients' transition plans. The Group's approach
focuses on supporting clients in this transition, but also includes a reassessment of the relationship with clients who are unwilling
to commit to progress. The implementation of this lever is designed as a long-term initiative.
DECARBONISATION LEVER ‘EMISSION REDUCTION IN OWN OPERATIONS’
BCR Group aims to decarbonise its operations by lowering the CO2 emissions associated with employee mobility through
electrification, enhancing building energy efficiency, switching to low-carbon energy sources and increasing employee engagement
through trainings and joint action. The implemented actions target tCO2e emissions from own operations, thus contributing to its
net zero operations goal set at Bank level. BCR Group’s actions currently focus on the reduction of scope 1 and 2 emissions as
managing operational scope 3 emissions represents a significant challenge, as these emissions are largely influenced by the
activities of third parties and external stakeholders. Please refer to chapter 'E1-4 Targets related to climate change mitigation and
adaptation' to gain a deeper understanding of the achieved GHG emission reductions within scope 1 and 2. Additionally, chapter
'E1-6 Gross scopes 1,2,3 and Total GHG emissions' outlines the current CO2e balance results. For more insights into energy
consumption and its breakdown, please see chapter 'E1-5 'Energy consumption and mix.
Resources from Property Management, IT operations, People and Culture and Sustainability teams are allocated for the
implementation of these actions. This also depends to some extent on the availability of resources, including financial ones.
Nevertheless, no constraints in terms of resources which might impair our ability to implement the climate change and mitigation
actions in own operations were identified at this stage.
No significant capital expenditure and operating expenditure is required for the described measures.
Scope of the decarbonisation lever
The implementation of the measures relates to the short-term period for employee engagement and awareness and to the medium-
term period for decarbonisation of employment mobility, increased energy efficiency of own buildings and low carbon energy use.
The decarbonisation lever is tracked with the net zero target which is applicable to BCR Group.
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The expected emission reduction per each of the actions/levers presented in this chapter is described by the respective target in the
following table. The achieved reductions are disclosed in section 'E1-4 Targets related to climate change mitigation and adaptation'.

Action/Lever | Target
Enabler 1: Financial Health Commercial Real Estate Tool | Decarbonisation target for Commercial Real Estate, sustainable corporate finance target
Enabler 2: Renovation Financing | Decarbonisation target for mortgage, sustainable finance real estate target
Key action 1: Renewable energy finance | Decarbonisation targets for heat and steam production and for electricity production, sustainable corporate finance target
Key action 2: Reducing coal financing | Decarbonisation targets for heat and steam production and for electricity production
Decarbonisation lever 'Client engagement' framework | All decarbonisation targets except those for commercial real estate and mortgages
Decarbonisation lever 'Emission reduction in own operations' | Scope 1 and 2 targets

E1-4 – TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION
PORTFOLIO DECARBONISATION TARGETS
BCR’s decarbonisation targets are presented in the ‘Portfolio Decarbonisation Targets’ table, detailing emission scopes, the base
year, the target value, the reference value and the selected scenario pathways and methodologies. BCR’s GHG emission reduction
targets are scientifically sound and compatible with BCR Group's ambition to achieve a net zero status of its portfolio by 2050.
The 2050 net zero portfolio ambition set at Erste Group level, which is supported by BCR, is strategically designed to evaluate the
effectiveness and efficiency of the initiatives in mitigating the emissions associated with its financing activities. This target not only
serves as a benchmark for assessing the success of various measures implemented to reduce the carbon footprint of financed
projects, but also underscores the Bank's commitment to sustainable finance.
The policies described in chapter 'E1-2 Policies and transition measures for climate change mitigation and adaptation', such as the
SFM, the BCR Group Responsible Financing Policy, the BCR Corporate Lending Policy, the Group Real Estate Financing Policy
and the BCR Group Retail Credit Risk Management Policy, collectively support the achievement of the portfolio decarbonisation
target by addressing BCR Group’s material IROs as listed in the table ‘Material Impacts, Risks and Opportunities’ in chapter 'SBM-3
– Material impacts, risks and opportunities and their interaction with strategy and business model'. The portfolio target is primarily
achieved through a reduction in financed emissions in the energy sector, as well as the promotion of a sustainable real estate sector.
This is explained in more detail in the chapter 'E1-3 Actions and resources in relation to climate change policies'.
By focusing on the energy and real estate sectors, as well as client engagement, BCR aims to address major sources of emissions
through sustainable financing, energy efficiency improvements and the transition to renewable energy sources. These efforts are
expected to contribute significantly to achieving the GHG emission reduction targets. The portfolio decarbonisation targets address
BCR’s downstream value chain and applies to the entire geographical area in which it operate in line with the internally defined
materiality threshold.
Client executives, industry experts and sustainability advisors were engaged to ensure that Erste Group’s goals, and therefore
BCR`s, are both ambitious and aligned with broader industry standards and expectations. The targets’ setting process was
coordinated by Erste Group and comprised a series of workshops carried out with the support of an external consultant. During
these sessions the SBTi/PACTA methodologies for each sector were discussed, as well as the country level scenarios. BCR provided
inputs on the business perspectives for each sector, transactions pipeline, mid- and long-term scenarios. The results of these
workshops were used for developing the decarbonization targets at both Erste Group and BCR level.
The following medium and long-term targets have been set to define the path towards a net zero portfolio and make progress
measurable:
8 https://www.ipcc.ch/
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Portfolio decarbonisation targets and actuals

|  |  |  |  | Baseline | Value | Targets 3
Sector | Metric | Methodol ogy 1 | Scenario/ pathway | Emission s scope 2 | Year | Value | 2025 | Reductio n in % | 2030 | Reductio n in % | 2050 | Reductio n in %
Mortgage s 4 | kgCO 2 e/ m² | Internal Model | XDC ITR 2.6°C | 1 and 2 | 2024 | 39.3 | 33.9 | -14% | 31.6 | -20% | 6.7 | -83%
Commerc ial real estate 4 | kgCO 2 e/ m² | Internal Model | XDC ITR 1.5°C | 1 and 2 | 2024 | 31.6 | 23.8 | -25% | 24.8 | -22% | 4.6 | -85%
Electricity productio n | kgCO 2 e/ MWh | PACTA | IEA NZE2050 | 1 and 2 | 2022 | 147.2 | 79.3 | -46% | 72.9 | -50% | 7.8 | -95%
Oil and gas extractio n | Tsd tCO 2 e | PACTA | IEA NZE2050 | 1, 2 and 3 | 2023 | 250.7 | 88.5 | -65% | 233.6 | -7% | 103.2 | -59%
Automoti ve productio n sector* | gCO 2 e / km | PACTA | IEA NZE2050 | 1, 2 and 3 | 2023 | 184.5 | 155.6 | -17% | 100.6 | -45% | 22.7 | -88%

1 BCR’s baseline values fulfill the requirements and calculation approach of third-party standard setters such as SBTi and PACTA. Those standards are based on the latest findings from
leading environmental institutions, such as the IPCC( 8). Hence, BCR’s baseline value is to be considered a representative one.
2 The given scopes represent emissions from BCR’s downstream activities, in particular the scope 1, 2 emissions of the client financed by BCR, and where significant also scope 3
emissions from the financed company / project.
3 Decarbonization targets are defined on the Erste Group level, applying materiality threshold, and cascaded to Erste Group Entities including BCR.
4 Mortgage and Commercial real estate targets defined based on proprietary internal model (driven by portfolio and market drivers) and benchmarked using X-Degree Compatibility model
(version 2025.08) by Right° based on science GmbH. Implied temperature of 2050 target at 2.6°C for Mortgages and 1.5°C for Commercial real estate. More details in the respective
chapter on Mortgage and Commercial real estate decarbonisation. SBTi SDA methodology was applied to determine the 1.5°C benchmark.
*In the 2025 review process the Baseline Value and Targets for Automotive sector have been updated to present the relevant values.
No decarbonisation targets have been set for the portfolio of BCR Leasing due to the fact that no material exposures were booked at
subsidiary level for sectors included in the decarbonization setting exercise.
Out of total credit risk volume of RON 155 billion as disclosed in the Note 28 in the Consolidated and Separate Financial
Statements, 57% is covered by the financed emissions calculation (see details in the respective chapter of CSRD). The portfolios
with decarbonisation targets cover 30% (scope 1 and 2) and 32% (scope 1+2 and scope 3) out of financed emissions in 2025.
Decarbonisation targets were established for carbon intensive sectors considering also available scientific methodologies.
As all targets are derived based on the Science-Based Target Initiative (SBTi) and Paris Agreement Capital Transition Assessment
(PACTA) methodologies, these targets serve as 1.5°C scenario-based benchmarks, except the real estate sectors. The real estate
sector is further described in the section 'Real estate decarbonisation target'. From a risk management perspective, aligning
scenario assumptions with realistic portfolio trajectories allows Erste Group, and therefore BCR, to identify potential vulnerabilities
early and safeguard the resilience of its business model. Based on this analysis, economic capital was allocated to reflect the
transition risk associated with the portfolio's current temperature alignment.
Methodology, defined measures and the current progress towards the targets will be described below.
The progress along the decarbonisation pathway is monitored quarterly via dedicated internal reports presented to the
management. Moreover, the actuals are approved by the Management Board as part of the BCR Group Risk Management Report.
The explanation on the progress is elaborated in the chapters dedicated to the decarbonisation of the respective sectors.
Electricity sector decarbonisation target
The focus within the electricity production portfolio is on diversified electricity producers as well as project-based financing of
electricity production. A thorough review is applied to confirm that the activities are centered on electricity generation. This focus
supports the broader goal of reducing carbon emissions in the power sector, which is a significant contributor to global GHG
emissions.
Moreover, the energy sector will be the central cornerstone of Europe’s decarbonisation success. As one of the most pollutant
industries at present, it also offers a substantial opportunity to transform from fossil fuels to renewable energy. Besides, a more
environmentally sustainable energy mix, origination from electricity transformation, will be a key contributor to reduce emissions
in other industries.
To support the energy transition, the EU climate objectives have helped to increase the ambition of national programs for deploying
clean energy measures. Electricity systems need to be flexible and require growth in battery energy storage and flexible peaking
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power plants such as combined cycle gas turbines. Expansion and modernisation of transmission and distribution grids offer
opportunities for financing to meet growing electrification demands.
This portfolio's scope includes direct emissions (scope 1) from the combustion of fossil fuels and indirect emissions (scope 2)
associated with the purchase of electricity, heat and cooling necessary for operations, as well as other indirect emissions (scope 3)
occurring throughout the entire value chain, such as those from the extraction and production of purchased materials, business
travel, employee commuting and other energy‑related activities not included in scopes 1 or 2.
BCR’s methodological approach is grounded in the PACTA framework, customized for financial institutions. This allows to track
and manage the physical emission intensity of electricity producers within its portfolio. Decarbonisation targets are defined
considering a physical metric and measured as kgCO2e/MWh.
This metric plays a crucial role in evaluating whether BCR’s clients are prepared for the necessary transition in line with the 2030
and 2050 decarbonisation objectives.
To align with global efforts to limit temperature rise, BCR has adopted the IEA (International Energy Agency) Net Zero 2050
scenario as the guiding benchmark. The targets aim for a 50% reduction in the physical emission intensity of the portfolio by 2030,
bringing it down from a 2022 baseline of 147 kgCO2e/MWh to 73 kgCO2e/MWh. BCR is tracking the progress closely, with interim
results showing a reduction of 46% to 79.3 kgCO2e/MWh by 2025, marking an improvement compared to the 2024 level of 87.2
kgCO₂e/MWh. This status reflects the group-wide focus on energy transformation and financing renewable energy projects as
elaborated in the section on Sustainable financing targets of this chapter.
For deriving the future trajectories for each technology, the NZE (Net Zero Emissions) 2050 (1.5°C) scenario was used. The IEA,
with its ‘Net Zero by 2050: A Roadmap for the Global Energy Sector report,’ depicts the pathway to building a global energy sector
with net zero emissions by 2050. The key drivers of this scenario are electrification and electricity supply and demand. Electricity
supply will change with the share of renewables rising and the use of coal falling globally. Natural gas is used as a transition up to
2030 but will decline in the long term. The path involves replacing carbon-intensive processes with renewable technologies
wherever feasible. For example, this includes waste-heat recovery, geothermal technologies for heating and solar and wind for
electricity production.
Oil and gas upstream decarbonisation target
The focus within the oil and gas portfolio is exclusively on clients’ upstream activities, thus BCR applies a thorough review process
to confirm that activities are related to upstream. Decarbonisation of this portfolio includes Scope 1, 2 and 3 emissions.
The methodological approach is grounded in the PACTA framework, customized for financial institutions.
The scenario used is World Energy Outlook (WEO) 2021 NZE aligned (1.5°C) global. The scenario implies the decline in global oil
demand and foresees that natural gas demand remains mostly stable until 2030. The scenario anticipates oil demand reduction
coming from the shift of passenger vehicles, transport cars and heavy trucks electric power. The share of natural gas in the global
energy mix remains around 11%, while around 70% of natural gas use in 2050 in NZE is equipped with carbon capture, utilisation
and storage.
BCR’s targets aim for a 7% reduction in the absolute financed emissions of the portfolio by 2030, bringing it down from a 2023
baseline of 250.7 (which takes into account also expected pipeline added to the baseline) thousand tCO2e to 233.6 thousand tCO2e.
BCR is tracking progress closely, with interim results of 88.5 thousand tCO2e by 2025. The results show a decrease compared to
2024 (191.5 thousand tCO2e).
The baseline value has factored in BCR's business with its oil and gas clients at the point of targets setting. BCR has committed to
refrain from increasing its exposure to oil and gas exploration financing, with the exemption of projects that align with Europe’s
national energy and climate plans (NECPs). BCR Group will provide banking services subject to its Group Responsible Financing
Policy.
Automotive decarbonisation target
BCR has defined a decarbonisation target for the original equipment manufacturers, namely manufacturers of light duty vehicles
(LDV). A thorough review process was carried out to identify the clients whose business activities fall under the definition of this
sector. This portfolio includes scope 1, 2 and 3 emissions, thus enabling the consideration of emissions for the entire lifetime of the
vehicle.
The methodological approach is grounded in the PACTA framework, customized for financial institutions. This allows BCR to
focus on the automotive value chain that controls the bulk of the impact and the decarbonisation efforts, to track and manage the
physical emission intensity of auto manufacturers within the portfolio that is measured as gCO2e/km, following the well-to-wheel
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methodology. This metric as well as technology mix plays a crucial role in evaluating whether BCR’s clients are prepared for the
necessary transition in line with BCR’s 2030 and 2050 decarbonisation objectives.
To align with global efforts to limit temperature rise, BCR has adopted the Net Zero 2050 scenario (WEO 2021) as guiding
benchmark. The targets aim for a 45% reduction in the physical emission intensity of BCR ’s portfolio by 2030, bringing it down
from a 2023 baseline of 186.7 gCO2e/km to 102.2 gCO2e/km.
The reduction of the CO2e emissions captured in BCR’s decarbonisation path is mostly driven by the EU regulation published by
the European Parliament, stating the EU ban on sale of new petrol and diesel cars from 2035 as part of the programme Fit for 55.
Moreover, the broader EU Green Deal and Sustainable and Smart Mobility Strategy provide the policy umbrella for decarbonizing
transport.
BCR is tracking progress closely, with interim results showing a reduction of 17% to 155.6 g CO2e/km by 2025, marking an
improvement compared to the 2024 level of 176 g CO2e/km. Relatively stable development of emission intensity in the portfolio of
BCR Group resembles the trends that are seen on the market, namely slow transition by the auto manufacturers.
R eal estate decarbonisation target
BCR's real estate decarbonisation targets are defined for clients in scope of the PCAF real estate module and cover scope 1 and 2
emissions. As communicated in the 2024 CSRD report, BCR proactively considered rebaselining these targets because the existing
pathways were not aligned with a 1.5°C scenario.
In 2025, Erste Group implemented significant methodological enhancements (applicable for BCR as well) to the PCAF real estate
module, including scope expansion, the introduction of a machine-learning EPC proxy model and the consideration of a financed
property flag. Combined with the updated National Energy and retail mortgages. Climate Plans by EU Member States, these
improvements triggered the decision to rebaseline the real estate decarbonisation targets in 2025.
The methodological approach of the rebaselining combined a proprietary internal model with a science based pathway assessment.
The internal model simulates the development of portfolio emission intensity based on asset-level data, energy performance
characteristics, and market assumptions. In parallel, a science-based decarbonisation pathway is applied using the SBTi SDA
(Science Based Target initiative Sectoral Decarbonization Approach) methodology alligned with a 1.5°C scenario (based on Carbon
Risk Real Estate Monitor (CRREM) pathways). Both approaches allow BCR Group to track and manage the physical emission
intensity of this portfolio using a metric that measures the amount of CO2e emissions per square meter (kgCO2e/m2). To
benchmark the results from the internal model and assess the implied temperature alignment, an external analysis was conducted
using X-Degree Compatibility (XDC) model developed by Right° based on science GmbH.
Mortgages
External benchmarking using the XDC model shows that BCR Group's 2050 retail mortgage portfolio pathway (6.7 kgCO2e/m2)
corresponds to an implied temperature alignment of 2.6°C. Despite the more ambitious commitments, achieving a portfolio
composition substantially different from national averages remains challenging. The updated mortgage portfolio decarbonisation
target is to achieve a 20% reduction in the portfolio's physical emission intensity by 2030, decreasing from a 2024 baseline of 39.3
kgCO2e/m2 to 31.6 kgCO2e/m2. The portfolio is predominantly composed of retail business volume. BCR Group closely monitors
progress, with interim results for 2025 showing a decline to 33.9 kgCO2e/m2.
Financed emission intensity at the end of 2025 amounted to 33.9 tCO2e/RON mn. The Group has rebaselined decarbonisation
targets for this sector, and as stated previously enhanced PCAF real estate module thus no meaningful y ear-over-year comparison is
provided.
Decarbonising the residential mortgage segment remains highly dependent on government action, regulatory incentives and the
pace of national energy-system decarbonisation - areas where progress in the CEE region is currently limited. Achieving a 1.5°C-
aligned pathway would require large-scale building renovations, substantial energy-efficiency upgrades and a rapid shift towards
low-carbon heating technologies. These developments rely heavily on external factors such as the availability of public subsidies,
predictable long-term frameworks, simplified permitting procedures, and accelerated decarbonisation of national electricity grids.
At present, progress in these areas remains uneven across BCR Group's core markets, and households continue to face significant
financial burden. As a result, the external environment limits the feasibility of achieving a fully Paris-aligned decarbonisation
pathway for this portfolio.
As regulatory frameworks evolve and government incentives strengthen, the Group will reassess its decarbonisation pathway to
ensure continued alignment with the broader transition of the real estate sector.
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Commercial real estate
External benchmarking using the XDC model shows that BCR Group's 2050 commercial real estate portfolio pathway (4.6 kgCO2e/
m2) corresponds to an implied temperature alignment of 1.5°C. The updated commercial real estate portfolio decarbonisation
target is to achieve a 22% reduction in the portfolio's physical emission intensity by 2030, decreasing from a 2024 baseline of 31.6
kgCO2e/m2 to 24.8 kgCO2e/m2. The portfolio predominantly consists of volumes in corporate business segment. BCR closely
monitors progress, with interim results for 2025 showing a decline to 23.8 kgCO2e/m2.
Financed emission intensity at the end of 2025 amounted to 2.3 tCO2e/RON mn. The Group has rebaselined decarbonisation
targets for this sector, and as stated previously enhanced PCAF real estate module thus no meaningful year-over-year comparison is
provided.
NET ZERO OPERATIONS TARGET
The net zero target for BCR Group operational scope 1 and 2 emissions was set as a decrease of 90 % in comparison to the base year
(2017). In absolute figures, the target is to reduce scope 1 and 2 emissions (market-based method) from 21,374 to 2,137 tCO2e by
2030. Additionally, chapter 'E1-5 - Energy consumption and mix' provides more in-depth information on BCR Group’s energy
consumption and its composition.
The net zero target for operational scope 1 and 2 emissions was set according SBTi´s net zero Standard and Target Setting tool v 1.1,
hence there is compatibility with limiting global warming to 1.5°C. The target setting method applied is absolute contraction, using
a cross-sector pathway. It was set in 2021 and was updated to reflect the further development of the standard and align to best
practices. The target covers 100 % of scope 1 and 2 emissions of BCR. For scope 2, the market-based method is used to calculate the
target. BCR Group’s baseline values fulfill the requirements and calculation approach of third-party standard setter SBTi. Those
standards are based on the latest findings from leading environmental institutions, such as the IPCC. Hence, BCR Group’s baseline
value is to be considered a representative one.
The net zero operations target addresses climate change mitigation and energy by aiming to reduce negative impacts through
energy mix and own GHG emissions. Currently, there is no formal policy covering the operational emission reduction target, but an
internal set of measures. The decarbonisation measures needed to achieve the operational target, have been identified to be
renewable energy transition, energy efficiency improvement, decarbonizing employee mobility and employee engagement and
awareness trainings like explained in chapter 'E1-3 - Actions and resources in relation to climate change policies'.
An ongoing dialogue is conducted with relevant stakeholders such as supervisory and regulatory authorities, investors, analysts and
rating agencies as well as academic and environmental institutions and NGOs. Inputs from these stakeholders were received
through bilateral talks, conferences and supervisory dialogues regarding climate change and consequently used in BCR ’s target
setting process which was centrally coordinated by Erste Group. For more details on consideration of interests and views of
stakeholders please refer to chapter 'SBM-2 - Interests and views of stakeholders'.
The basis for BCR ’s target monitoring and review process represent the annual emission calculation of scope 1 and 2 emissions
including details on energy consumption and efficiency. With updated annual data, BCR assesses its performance against the set
targets and adjusts or plans measures accordingly towards the achievement of the target (e.g. an increased focus on switching to
alternative heating systems in own branches where feasible). In the last two years, BCR’s scope 1 and 2 emissions showed a
significant decrease resulting from the switch to green electricity, reduction in consumption of gas used for business premises
heating and increased usage of electric vehicles.
In 2025, scope 1 and scope 2 emissions decreased with approx 2.2%, compared to the previous reporting year, from 6,137 tCO2e to
6,001 tCO2e. Overall this continues to represent a substantial 72% reduction compared to the base year 2017. Specifically, scope 1
emissions decreased from 11,435 tCO2e to 5,354 tCO2e, while scope 2 emissions fell from 9,939 tCO2e to 647 tCO2e compared to
the base year. Scope 1 emissions recorded a decrease of 5% in 2025 compared to the previous reporting year. This reduction was
primarily driven by the growing share of electric vehicles in the fleet which increased from 21% to 33% and enabled BCR Group to
overachieve 2025 short-term target of 30%.
At the same time, the decrease in scope 1 emission was counterbalanced by an increase in scope 2 emissions. The rise in scope 2
emissions was primarily due to a more granular data collection process as regards emissions associated with datacenter operations.
With these developments, BCR Group still remains on track to achieve its 2030 target.
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Scope 1 and 2 targets

Targets | Metric | Baseline 2017 | Target 2025 | Target 2030
Total scope 1 and 2 emissions | tCO 2 e | 21,374 | 6,000 | 2,137
Electric fleet | % of e-cars in total carfleet | - | 30% | 100%

BCR’s focus is to decrease scope 1 and 2 emissions in own operations, and it has not adopted a target for scope 3 emissions as to be
able to progress promptly based on actions targeted at the part of its value chain that it can influence.
SUS TAINABLE FINANCI NG TARGETS
To measure the effectiveness of actions implementing the Sustainable Finance Methodology (SFM), BCR Group has defined
sustainable financing targets for the corporate and retail segments of the Bank.
Methodology
The SFM outlines the following categories based on which a financing can be qualified as a ‘sustainable financing’:
— either complies fully with the respective EU Taxonomy criteria for specific purpose financings or general purpose financings
weighed by counterpart’s most recently published Taxonomy-alignment KPI, if the purpose of the financing is unknown (please
refer to the ‘EU Taxonomy Disclosure’ chapter for more information)
— activities for which simplified internal criterion sets for evaluation apply by either showing reduction in carbon emissions
compared to the market standard or by supporting climate and nature related objectives;
— support of projects from supranational institutions in key-sectors;
— fulfillment of project categories of voluntary frameworks;
— support of dedicated national programs.
Related to climate change mitigation economic activity ‘Construction of new buildings’
Considerable reduction in carbon emissions for the activity ‘Construction of new buildings' is shown by a primary energy demand
that is 10% lower than the NZEB standard. This is certified by an Energy Performace Certificate.
Climate change mitigation economic activity ‘Acquisition and ownership of buildings’
Financings for the activity ‘Acquisition and ownership of buildings’ are considered sustainable financing for buildings built before
31 December 2020 when the building has at least an Energy Performance Certificate (EPC) class A.
Categories reflected as ‘Other’ in the table New Sustainable Corporate Financing
— support of projects from supranational institutions in key-sectors e.g. (EIF, EIB);
— fulfillment of project categories of voluntary frameworks (e.g. Green Bond Principles under International Capital Market
Association, ICMA, Green Loan principles under Loan Market Association);
— support of dedicated national programmes (as per individual analysis).
Sustainable financings from the categories stated above flow into table ‘Sustainable Financings - actuals and targets’. Actions,
metrics and targets related to Sustainable Financings are partially linked with the material impacts, risks and opportunities (IROs)
outlined in chapter 'E1 SBM-3- material impacts, risks, and opportunities and their interaction with strategy and business model'.
25% sustainable corporate financing target by 2026
The 25% sustainable corporate financing target addresses BCR’s identified material impacts and opportunities related to climate
change mitigation, emission reduction for real estate, and deployment of renewable energy deployment. This includes primarily
financing of real estate and renewable energy projects, while also supporting BCR Group’s clients in their decarbonisation efforts
and transition to a sustainable business model. The Sustainable Finance Methodology and criteria outlines which financings
contributes to the target achievement (see ‘Methodology’ in this chapter and 'E1-2 - Policies and transition measures for climate
change mitigation and adaptation' for more details).
BCR aims to achieve a ratio of 25% of sustainable financings towards corporates in 2026. The target is defined in relative to the
gross carrying amount of corporate financing on the balance sheet. The target is applicable for all corporate business lines of BCR.
In 2025, the share of sustainable financing related to the corporate’s portfolio was 21% (2024: 11.3%). Monitoring is done on a
quarterly basis and discussed at the Sustainability, Diversity and Inclusion Committee meetings.
15% sustainable mortgages target by 2027
The 15% target for sustainable mortgages tackles BCR’s recognized opportunities concerning climate change mitigation and
efficient energy use (material positive impact also considered). This involves financing and investing in real estate, renovation and
energy efficient projects. The Sustainable Finance Methodology and related criteria outlines which financings contribute to the
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target achievement (see ‘Methodology’ in this chapter and 'E1-2 - Policies and transition measures for climate change mitigation
and adaptation' for more details).
BCR is committed to achieve a ratio of 15% of sustainable mortgage lending towards retail clients in 2027, to support the target set
at Erste Group level. However, we have the local ambition to overachieve this target and reach at 25% sustainable mortgage lending
by 2027. The target is defined in relative terms to the on-balance gross carrying mortgage amount towards retail clients.
In 2025, the share of sustainable financing related to sustainable mortgages was 29.1% (2024: 20.1%). The actual results are
monitored and reviewed in regular intervals. Monitoring is done on a quarterly basis and discussed at Sustainability, Diversity and
Inclusion Committee meetings.
The following table shows the actual figures and targets for sustainable financing. The first line shows the ratio of the gross carrying
amount out of financing business in corporate business sectors that meet sustainable financing criteria, as a percentage of total
receivables in these sectors. The second line shows the ratio of the gross carrying amount out of mortgage loans that meet the
sustainable financing criteria, as a percentage of total receivables in this portfolio.
Sustainable financing – actuals and targets

|  |  |  |  |  | Targets
|  | Baseline | Actual | Actual | short-term | mid-term
| Metric | Year | Value | 2024 | 2025 | Year | Target | Year | Target
Sustainable corporate financing | % of corporate financing portfolio | - | - | 11.3% | 21.0% | - | - | 2026 | 25.0%
Sustainable retail mortgages* | % of retail mortgage portfolio | - | - | 20.1% | 29.1% | - | - | 2027 | 15.0%

* BCR is committed to achieve a ratio of 15% of sustainable mortgage lending towards retail clients in 2027, to support the target set at Erste Group level. However, we have the local ambition to overachieve this target and
reach 25% sustainable mortgage lending by 2027.
The sustainable retail mortgage ratio of 29.1% in 2025 (2024: 20.1%) indicates that BCR fulfils its sustainable retail mortgage target
ahead of the schedule.
Sustainable corporate financings reaching 21.0% in 2025 (2024: 11.3%) were mainly driven by real estate financings, and renewable
energy projects, while also further enhancing BCR’s financing opportunities in other sustainable areas.
The base year for the sustainable corporate financing target is 2022 and for the sustainable retail mortgages 2023.
New corporate sustainable (use of proceeds) financing has been supported by a strong contribution from commercial real estate
financing and renewable energy projects, as shown in the Table Sustainable corporate financing. This growth has further
strengthened our sustainable corporate financing KPI.
The table below includes new business generated during the reporting period in the corporate segment.
New sustainable corporate financing*

in RON million | 2024 | 2025
New corporate sustainable financing, total new business 1 | 2,375.6 | 3,939.6
Construction and real estate | 788.4 | 1,631.0
Renewable energy | 1,119.7 | 1,264.5
Transportation | 149.2 | 43.3
Other corporate financing 1 | 318.3 | 1,000.8

1 The target is applicable for all corporate business lines of BCR
* New sustainable corporate financing: the new and increased commitment volume delivered within the calendar year
The measurement of these metrics has not been validated by an external body, apart from the assurance provider.
No changes in the targets, corresponding metrics or the underlying methodologies have been made in 2025. The sustainable
corporate financing target and the sustainable mortgages target were set based on guidance collected through bilateral discussions,
conferences, dialogues from supervisory and regulatory authorities, investors, analysts and rating agencies as well as NGOs,
academic and environmental institutions. The internal experts' recommendations were subsequently integrated into the target-
setting process which was centrally coordinated by Erste Group. For more details on consideration of interests and view of
stakeholders please refer to chapter 'SBM-2 Interests and views of stakeholders'.
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E1-5 – ENERGY CONSUMPTION AND MIX
BCR Group uses the Tagetik software program, implemented at Erste Group level, to gather energy consumption data. Energy
consumption at approximately 340 business locations is individually recorded and evaluated. Annual electricity and heating
consumption values in MWh are collected on an individual address level, broken down by source of electricity and heating type to
be able to split the total energy consumption into fossil, nuclear and renewable sources. As proof documents, supplier invoices are
recorded in the accounting system. The data is not validated by an external body.
The split between energy from fossil, nuclear and renewable sources is done as follows:
— consumption from 100% renewable sources (e.g. purchased green electricity as defined in the contract with the energy supplier
or via other contractual instruments such as Energy Attribute Certificates – Guarantee of Origin (EECS-GO) for green
electricity) is automatically allocated to ‘‘renewables’’.
— consumption from 100% fossil sources (e.g. oil for heating or diesel for emergency generators) is automatically allocated to
‘‘fossil’’.
— for mixed sources like national electricity supply or district heating partially from renewables and fossil sources, data
contributors have the option to enter the split as indicated on their energy bills or provided by their suppliers into the system.
— if data contributors do not have access to this information a national average split is applied.
Measurement uncertainty can result from the fact that the collection of energy consumption is not linked directly to the meters
installed at the office or branch locations but based on the manual input of energy consumption as invoiced by the energy provider.
Adjustments are made to the invoiced quantity if part of the property is leased out to third parties. Adjustments are based on leased
out area as % of total property area if there is no meter available for tenant’s space. Estimated impact of the adjustments: 380 tons
tCO2e for 2025, respectively 292 tCO2e for 2024. Both figures refer to scope 1 and scope 2 emissions. Overall aim is to estimate BCR
Group part of the consumption in the property. Data is extrapolated if invoices are received after the reporting deadline or to
account for different cut-off periods. For those locations where no consumption values, supported by a supplier invoice, were
available, an average consumption is automatically applied and calculated for the individual location based on the net floor area
and comparable properties and considering a national average split of energy source by fossil, nuclear and renewables.
Compared to previous year the total energy consumption showed a slight decrease in 2025, while the share of energy from
renewable sources increased from 42.19% to 42.70%, mirroring the rise in green electricity and renewable heating usage across the
group.
The total energy consumption in 2025 amounts to 42,369 MWh (2024: 43,515 MWh).
Energy consumption and mix

| 2024 | 2025
Fuel consumption from coal and coal products (MWh) |  |
Fuel consumption from crude oil and petroleum products (MWh) | 5,558 | 4,209
Fues consumption from natural gas (MWh) | 16,704 | 16,464
Fuel consumption from other fossil sources (MWh) | 0 | 0
Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources (MWh) | 2,895 | 3,603
Total fossil energy consumption (MWh) | 25,157 | 24,276
Share of fossil sources in total energy consumption (%) | 57.8% | 57.3%
Consumption from nuclear sources (MWh) | 0 | 0
Share of consumption from nuclear sources in total energy consumption (%) | 0.0% | 0.0%
Total energy consumption from renewable sources disaggregated by: | 18,358 | 18,093
– fuel consumption for renewable sources 1 | 0 | 0
–consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources; | 18,356 | 18,022
–consumption of self-generated non-fuel renewable energy. | 2 | 71
–Share of renewable sources in total energy consumption (%) | 42.2% | 42.7%
Total energy consumption (MWh) | 43,515 | 42,369

1 incl. biomass (also comprising industrial and municipal waste of biologic origin), biofuels, biogas, hydrogen from renew. Sources
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E1-6 – GROSS SCOPES 1, 2, 3 AND TOTAL GHG EMISSIONS
TOTAL GREENHOUSE GAS EMISSIONS
Total GHG emissions

in RON thousand | Base year (2022) | 2024 | 2025 | % Change compared to previous year | 2030 | (2050) | Annual % target / Base year
Scope 1 GHG emissions 1 |  |  |  |  |  |  |
Gross scope 1 GHG emissions (tCO 2 e) | 5,750 | 5,617 | 5,354 | -5% | 1,679 |  | -71%
Percentage of scope 1 GHG emissions from regulated emission trading schemes (%) 2 | N/A | N/A | N/A | 0% |  |  |
Scope 2 GHG emissions |  |  |  |  |  |  |
Gross location-based scope 2 GHG emissions (tCO 2 e) | 6,192 | 5,605 | 5,637 | 1% |  |  |
Gross market-based scope 2 GHG emissions (tCO 2 e) | 2,001 | 520 | 647 | 24% | 458 |  | -77%
Significant scope 3 GHG emissions 3 3 |  |  |  |  |  |  |
Total Gross indirect (scope 3) GHG emissions (tCO 2 e) | 1,926,941 | 4,046,684 | 4,250,153 | 5% |  |  |
Purchased goods and services | 704 | 1,388 | 1,243 | -10% |  |  |
Capital goods | 61 | 93 | 197 | 112% |  |  |
Fuel and energy-related activities | 1,918 | 1,176 | 1,050 | -11% |  |  |
Upstream transportation and distribution | 3,774 | 3,984 | 4,002 | 0% |  |  |
Waste generated in operations | 175 | 1,100 | 1,109 | 1% |  |  |
Business travels | 730 | 1,473 | 2,018 | 37% |  |  |
Employee commuting | 2,961 | 3,355 | 3,284 | -2% |  |  |
Downstream leased assets | 100,082 | 121,043 | 146,269 | 21% |  |  |
Investments | 1,816,536 | 3,913,072 | 4,090,980 | 5% |  |  |
Total GHG emissions |  |  |  |  |  |  |
Total GHG emissions (location- based) (tCO 2 e) | 1,938,883 | 4,057,906 | 4,261,144 | 5% |  |  |
Total GHG emissions (market- based) (tCO 2 e) | 1,934,692 | 4,052,821 | 4,256,154 | 5% |  |  |

1 Note: No biogenic emissions are emitted.
2 BCR Group is not part of any regulated emission trading schemes. Therefore, no scope 1 GHG emissions stem from such schemes.
3 ESRS E1 refers to the GHG protocol Corporate Value Chain (scope 3) Accounting and Reporting Standard, 2011, which defines 15 scope 3 categories of which only material ones should be disclosed.
The baseline value determined for scope 1 and 2 emissions is 21,374 CO2 tones and the related base year is 2017, as described above
under section 'E1-4 – Targets related to climate change mitigation and adaption'. Values presented in the table above for scope 1
and 2 under column 'Base year 2022' were included to ensure consistency and comparability with the data presented for scope 3, for
which the base year was set to be 2022 (for all scope 3 categories). The increase in total GHG emissions and GHG intensity per net
revenue in 2025 is primarily attributable to enhanced data quality for scope 3 emissions from investments, specifically the inclusion
of downstream emissions reported by debtors.
A cumulated target (scope 1 & 2 emissions) was approved by highest level of management for 2025 as 6,000 tones CO2 and for 2030
2,137 tones. Scope 2 emissions are market based emissions.
The cumulated targets are supported by separate targets for scope 1 and 2 approved at a lower level of management. These are as
follows: scope 1: 5,480 tons in 2025 and 1,679 tons in 2030; scope 2: 520 tons in 2025 and 458 tons in 2030.
With regards to the methodologies and assumptions used for calculating the measured GHG emission please refer to the
subsequent paragraphs concerning operational and financed emissions.
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GREENHOUSE GAS INTENSITY PER NET REVENUE
GHG intensity per net revenue

| 2024 | 2025 | Change compared to prior year
Total GHG emissions (location-based) per net revenue (tCO 2 e/RON) | 1,519 | 1,705 | 12.3%
Total GHG emissions (market-based) per net revenue (tCO 2 e/RON) | 1,517 | 1,703 | 12.3%

RECONCILIATION OF NET REVENUE
Reconciliation of net revenue

in RON thousand | 2024 | 2025
Amounts used to calculate GHG emissions * | 2,671,880 | 2,499,302
Total amount according to the Consolidated and Separate Financial Statements | 9,039,740 | 10,104,371

* Net revenue used to calculate GHG emissions refer to the net revenue generated from the loans that were included in the
financed emissions calculation. GHG intensity per total net revenue is 421.71 tCO2e / RON (2024: 448.83 tCO2e / RON) (location-
based) and 421.22 tCO2e / RON (2024: 448.33 tCO2e / RON) (market-based).
GHG emissions caused by BCR Group’s operations are calculated in accordance with the GHG Protocol Corporate Accounting and
Reporting Standard. Calculations cover scope 1, 2 and 3 emissions and each was measured in CO2e. The organisational scope of the
calculation refers to all entities in the IFRS scope of consolidation with at least one FTE. To calculate the emissions from activities
emission factors with a GWP100 was used including relevant GHG emissions (CO2, CH4, N2O, HFCs, PFCs, SF6, NF3). The results
are not validated by an external body.
Reconciliation with the statements of profit or loss
Total net revenue amounting to RON 2,499,302 thousand (2024: RON 2,671,880 thousand) which served as the basis for calculating
GHG emissions represents net revenue associated with the exposure included in the financed emissions calculation (as presented
in Table “Share of the portfolio covered by the calculations”), and are part of the Total amount according to the Consolidated and
Separate Financial Statements. amounting to RON 10,104,371 thousand (2024: RON 9,039,740 thousand), as presented in the
Consolidated and Separate Financial Statements, and table bellow. This total is determined according to the net revenue definition
of the Council Directive 85/635/EEC, derived from pre-tax result from continuing operations before personnel expenses, other
administrative expenses, depreciation and amortisation, impairment result from financial instruments, interest expense, other
similar expense and net fee and commission expenses:

in RON thousand | Notes to the Financial Statements | Revenue 2024 | Revenue 2025
Interest income | 1 | 6,692,846 | 6,914,620
Other similar income | 1 | 242,463 | 518,841
Fee and commission income | 2 | 1,450,865 | 1,601,850
Dividend income | 3 | 6,192 | 6,581
Net trading result | 4 | 487,915 | 544,422
Foreign currency translation |  | 4,371 | -8,723
Rental income from investment properties and other operating leases | 5 | 34,543 | 14,237
Other revenues included in the Statements of profit or loss in Other Operating Result, but not as a separate presentation line | 11 | 120,545 | 512,543
Total amount according to the Consolidated and Separate Financial Statements |  | 9,039,740 | 10,104,371

In case of the various emission categories, BCR Group implemented the following approaches:
Scope 1 and 2
BCR Group gathers scope 1 and 2 emission data as stated in chapter 'E1-5 - Energy consumption and mix'. For a better
understanding of BCR Group’s methodologies and significant assumptions behind the metrics please refer to chapter 'E1-5 - Energy
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consumption and mix'. Scope 2 emissions were calculated using location-based and market-based method. In case of the location-
based method, grid factors were used to calculate the emissions. In case of the market-based method, BCR Group considered its
actual energy composition based on its own procurement strategy. For convers ion to CO 2 equival ents (CO 2 e), emission factors from
DBEIS 2025 (Department for Business, Energy and Industrial Strategy) and the IEA 2024 (International Energy Agency) are used.
These sources are considered reliable sources and were validated at Erste Group level.
Out of BCR Group total energy consumption, 43% is electricity consumption (2024: 42%). Out of electricity consumption, 40% of it
was renewable energy through unbundled contractual instruments (2024: 39%), Energy Attribute Certificates – Guarantee of Origin
(EECS-GO). The remaining 60% (2024: 61%) of it was renewable energy through bundled contractual instruments directly from
Romanian suppliers. As such, this entire 43% (2024: 42%) from the total energy consumption was renewable electricity.
In 2025, due to growing share of electric cars in the fleet, BCR Group reduced its scope 1 and 2 emissions by 2.2%, from 6,137
tCO2e to 6,001 tCO2e. Approximately 13% (2024: 12%) of scope 1 data is based on estimates, while the corresponding percentage for
scope 2 is 20% (2024: 20%).
Scope 3
For the computation of scope 3 emissions, BCR Group has focused on those categories for which data was available or could be
determined on estimates which would not entail high uncertainty, whilst also considering the perspective of exercising a certain
level of influence towards commitment to curve down emissions.
The scope 3 categories 'upstream leased assets', 'downstream transportation', 'processing of sold products', 'use of sold products',
'end-of-life treatment of sold products' and 'franchises' are considered immaterial due to the magnitude of GHG emissions and are
not disclosed in the total GHG emissions table.
Scope 3 category 1 - Purchased goods and services
For scope 3 category 1 a spend-based method was used. Emissions for goods and services were estimated by collecting data on the
economic value of goods (spend in EUR) and services purchased by BCR Group and multiplying it by emission factors originating
from an environmentally extended input-output analysis (EEIOA; exiobase 2024). Each purchase, based on customer country, was
mapped with the corresponding emission category from exiobase and multiplied accordingly.
Scope 3 category 2 - Capital goods
For scope 3 category 2 a spend-based method was used. Just like for scope 3 category 1, emissions for capital goods were estimated
by collecting data on the economic value (spend in EUR) of capital goods purchased by and multiplying it by emission factors
originating from an EEIOA (exiobase 2024). Each purchase, based on customer country, was mapped with the corresponding
emission category from exiobase and multiplied accordingly.
Scope 3 category 3 - Fuel-and-energy-related activities (not included in scope 1 or 2)
For scope 3 category 3 the average-data method was used. The emissions were estimated by using secondary emission factors
(DEFRA, 2024) for upstream emissions per unit of consumption (T&D and WTT). The data for purchased energy and fuel is actual
supplier data, which also serves as the basis for the scope 1 and 2 calculations.
Scope 3 category 4 - Upstream transportation and distribution
For scope 3 category 4 a spend-based method was used. Just like for scope 3 category 1 and scope 3 category 2, emissions for
upstream transportation and distribution were estimated by collecting data on the economic value (spend in EUR) of transportation
and distribution services purchased by BCR Group and multiplying it by emission factors originating from an environmentally
extended input-output-analysis (exiobase, 2024). Each purchase, based on customer country, was mapped with the corresponding
emission category from exiobase and multiplied accordingly.
Scope 3 category 5 - Waste generated in operations
For scope 3 category 5 a waste-type-specific method was used if primary data was available for different waste types. For all primary
data available, waste descriptions were mapped to waste activities and waste types. Waste types were then matched to waste
treatment options based on ‘‘GHG reporting by department of business, Energy and Industrial Strategy UK’’ (DEFRA 2024). After
that, the emissions for the waste types were multiplied by emission factors based on the waste treatment options provided by
DEFRA. The waste treatment splits were set based on research and municipal waste treatment data from OECD and European
Environment Agency.
Scope 3 category 6 - Business travel
For scope 3 category 6, the distance-based method was applied. The distance and mode of business trips are collected and partially
extrapolated when no primary data was available. For the extrapolation country average distance travelled by mode of
9 https://www.umweltbundesamt.at/en/
119
transportation based on actual data entered in the system was used. The appropriate emission factors (Federal Environment
Agency, 2025)( 9) for each mode of transportation used were applied.
Scope 3 category 7 - Employee commuting
For scope 3 category 7 a survey was performed in 2024 among Erste Group employees in to assess the average distance travelled
and mode of transportation used by employees to travel to their place of work. However, this was not carried out by BCR Group,
therefore the results available at Erste Group level were extrapolated for our organization. The 2025 emission calculation is based
on survey results from 29 entities part of Erste Group. In addition, the number of working days, with consideration to vacation
days, average sick days and home office rates, was determined. Such information was provided by Erste Group People and Culture
department. The appropriate emission factors for each mode of transportation used were applied (Federal Environment Agency,
2024) and multiplied accordingly.
Measurement uncertainty can result especially where extrapolations are made in calculating emissions. This is especially relevant
for emission categories where actual data availability is limited such as ‘‘employee commuting’’.
In the process for preparation and presentation of sustainability information in 2024 and 2025, BCR Group assessed the ESRS-
related requirements on the reporting on Total GHG emissions, to provide information of the group’s GHG emissions occurring
from its upstream value chain. Based on this assessment , emissions from CIT One SRL were included in the calculation. BCR Bank
owns 33% of CIT One SRL in a joint venture arrangement and CIT One SRL is financially consolidated through equity method by
BCR. It is the main supplier of BCR for cash transport and processing services.
In 2025, BCR Group’s total operational scope 3 emissions slightly increased due increase in business travel emissions. The
calculation of scope 3 categories 1, 2 and 4 emissions are 0% (2024: 0%) based on estimates. For category 3 emissions the share of
estimates is 15% (2024: 14%), for category 5 the share of estimates is 91% (2024: 89%) and for category 6 emissions the share of
estimates is 38% (2024: 24%). The calculation of scope 3 category 7 is 100% (2024: 100%) based on estimates as results from the
employee surveys performed were extrapolated using the number of FTEs.
All operational scope 3 emissions described above are measured using inputs from specific activities from BCR upstream value
chain such as number of employees, amounts spent for goods and services, distance travelled etc. None of emissions calculated are
using primary data obtained from suppliers or other value chain partners.
Scope 3 Category 13 and 15 Financed Emissions
Financed emissions stood at 4.2 million tons CO2e (2024: 4 million tons CO2e) and include ‘Investments' and 'Downstream Leased
Assets’ in table ‘Financed Emissions’. Financed emission intensity stood at 86.1 tCO2e/RON million (2024: 88.3 tCO2e/RON
million), which is a year-on-year decrease of 2.2 tCO2e/RON million. Decrease in intensity can be mainly explained by the
significant methodological enhancements implemented on Erste Group level for Commercial real estate and mortgages. In line
with that, Scope 3 data quality score improved from 3.8 to 3.7.
The scope 1 and 2 financed emissions decreased from 979.9 tonnes CO2e to 791.6 million tonnes CO2e mainly driven by
methodological enhancements. Following GHG protocol, BCR Group reports financed biogenic emissions separately from financed
emissions, which amount at 34.1 tonnes CO2e.
Overall, the calculation of 2025 financed emissions covers 56.7% (2024: 57.7%) of the BCR Group's credit exposure and shows a
decrease compared to last year, driven by the increase in off-balance sheet exposure, which is not included in the financed emission
calculation. The remaining uncovered exposure originates from the fact that selected portfolios (e.g., exposure to central banks and
credit institutions, off-balance sheet items and consumer loans) are not part of the current financed emission calculation.
BCR Group applies the GHG Protocol to determine the minimum boundaries of its financed emission calculation. No significant
events or changes occurred during the reporting period that would have an impact on the GHG emissions disclosed.
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Share of the portfolio covered by the calculations

| Dec 24 | Dec 25
| Credit exposure | covered by financed emissions | Credit exposure | covered by financed emissions
| in RON thousands | in RON thousands | % | in RON thousands | in RON thousands | %
Off-balance sheet exposures | 29,706,710 | 0 | 0.0% | 34,114,770 | 0 | 0.0%
Central banks | 0 | 0 | 0.0% | 0 | 0 | 0.0%
Central governments | 44,525,482 | 35,630,180 | 80.0% | 48,566,282 | 38,660,515 | 79.6%
Credit institutions | 7,492,959 | 0 | 0.0% | 7,029,274 | 0 | 0.0%
Other financial corporations | 1,603,218 | 853,509 | 53.2% | 1,664,865 | 924,961 | 55.6%
Non-financial corporations | 25,503,935 | 25,455,763 | 99.8% | 27,777,094 | 27,724,635 | 99.8%
Households | 32,227,017 | 19,387,940 | 60.2% | 35,892,439 | 20,588,894 | 57.4%
Total | 141,059,320 | 81,327,393 | 57.7% | 155,044,723 | 87,899,006 | 56.7%

BCR uses the PCAF methodology (version 2022) to account for its financed emissions (scope 3 emissions category 15
‘Investments’). As this standard is in conformity with the internationally recognised GHG Protocol (Corporate Value Chain (scope
3) Accounting and Reporting Standard) emissions are calculated for all the seven GHGs that are listed in the Kyoto Protocol. These
are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and the fluorinated gases (F-gases): hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) as well as nitrogen trifluoride (NF3).
For details of the methodology including assumptions, see the ‘Methodology’ section below. BCR Group includes the following
PCAF-defined asset classes in its calculation: corporate bonds and listed equity, business loans and unlisted equity, project finance,
commercial real estate finance and mortgages. Additionally, BCR calculates emissions of the PCAF-defined asset class ‘sovereign
debt’ and reports them in a separate table. The leasing business (category 13 ‘Downstream Leased Assets’) is included in BCR scope
3 emissions. This category is calculated using the same methodology as for category 15 and is separately shown as a sub-item. For
simplicity and following market practice, the report refers to the PCAF - defined asset class 'corporate bond and listed equity' as
'corporate bond' and the asset class 'business loan and unlisted equity' as 'business loan'.
Weighted Average Carbon Intensity (WACI) sets the client emissions in relation to client revenues, weighted by the share of the
respective client in the total portfolio. The WACI can only be calculated for in the PCAF-asset classes business loans, corporate
bonds and project finance. For the real estate the metric is not applicable, as the calculation is dependent on the financed object
and not the client emissions. Scope 1 and 2 WACI increased from 138 gCO2e/RON revenue (2024) to 210 gCO2e/RON revenue
(2025) mainly due to Energy and Natural resourses. In comparison to that, in scope 3 the WACI decreased from 612 gCO2e/RON
revenue (2024) to 558 gCO2e/RON revenue (2025), mainly driven by the Natural resources and Energy, partially offset by Non-
cyclical consumer goods.
One out of the seven currently existing PCAF calculation methodologies – motor vehicle loans – have not been applied yet. The
motor vehicles asset class has not been implemented as such because of the low weight of this portfolio. The financed emissions of
this portfolio are currently calculated by means of the methodology used for business loans.
Methodology Business Loan, Corporate Bonds and Project Finance
In the case of business loans, BCR follows the PCAF methodology by relying either on emissions reported by the corporate
customers or emission factors drawn from the PCAF database or on its own approach for loans to large real estate managing
companies.
In 2025, Erste Group refined its PCAF asset class allocation methodology applicable for BCR Group as well, enabling the
reclassification of RON 3 billion for BCR from general-purpose calculations (business loans) to specific-purpose calculations
(commercial real estate). This shift was made possible by aligning the PCAF definition of commercial real estate with Erste Group's
internal Commercial Real Estate Policy. As a result, exposures previously categorized under business loans were reassigned to the
commercial real estate category. Consequently, Erste Group discontinued the previous approach of applying commercial real estate
intensity factors to real estate companies classified under NACE L68.
BCR is deviating from PCAF standard for listed companies in the business loan and corporate bond modules. It applies the balance
sheet value instead of the Enterprise Value including Cash (EVIC) as a denominator to calculate the attribution factor for listed
companies, as using EVIC might lead to higher volatilities only driven by capital market movements, e.g., in a market stress
situation its financed emissions would increase, which doesn’t need to be directly related to movements in the physical production
of the company. This approach is in line with Erste Group's peers, due to the limitation of the metric.
10 https://ec.europa.eu/eurostat/databrowser/view/nrg_bal_c__custom_12489432/default/table?lang=en
https://app.electricitymaps.com/map/live/fifteen_minutes
11 umweltbundesamt.de/sites/default/files/medien/1410/publikationen/2021-12-13_climate-
change_71-2021_emissionsbilanz_erneuerbarer_energien_2020_bf_korr-01-2022.pdf
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In case of project finance, BCR assumes that renewable energy projects (wind, solar, geothermal and hydropower) have an
emission factor for scope 1 and 2 of zero. Otherwise, in the absence of financing purpose and specific emission factors, project
finance follows the calculation methodology for the business loans asset class by using either the emissions reported by the
businesses or estimates based on financial metrics and emission factors drawn from the PCAF database.
BCR keeps using the base year 2015 PCAF emission factors (Exiobase database) for the 2025 reporting to ensure comparability with
the figures of the previous year, which were also used as a basis for target setting. The initial PCAF version is based on Exiobase
2015 data base and was the most up-to-date version until March 2023, being replaced by Exiobase 2019 data base. Keeping for 2025
the Exiobase 2015 data base is also in line with the user briefing published by PCAF, providing as a recommendation to apply the
same economic emission factor dataset for longer periods of time (minimum 3 years). For scope 3, PCAF Emission factors are not
containing Downstream Emissions. In October 2025, PCAF released a new database version based on the Comprehensive
Environmental Data Archive (CEDA). BCR Group and Erste Group plan to begin using the CEDA database in 2026. At present,
switching to CEDA would not result in an increase in reported emissions.
Methodology Commercial Real Estate and Mortgages
With regards to commercial real estate and mortgages, the calculation of financed emissions is based on building data, which in a
first step is used to calculate the emissions of a financed asset. Depending on data availability, BCR calculates emissions from
buildings in the following order (which does not reflect the data quality score):
1. CO2e emissions as per energy performance certificate
2. Primary energy demand (PED) as per energy performance certificate
3. PED class as per energy performance certificate
4. PED class with advanced EPC proxy estimation approach
5. PED class based on the year of construction
6. PED class based on the national average drawn from the PCAF European building emission factor database as of 2025.
Erste Group enhanced the real estate based financed emissions calculation methodology by EPC proxy estimation approach. This
approach, applicable for BCR as well, applies advanced methodologies (e.g., machine-learning algorithm) to derive EPC labels from
collateral data or other relevant information. In 2025, the identification framework for financed real estate exposures was
enhanced. The introduction of a financed‑property flag resulted in the exclusion of specific exposures, while real estate assets
without buildings were explicitly identified and classified as vacant land. Financing of vacant land was therefore treated separately
and assigned zero financed emissions.
For calculation 3 to 6, average primary energy demand is based on the primary energy demand class recorded in the PCAF
Database. Once primary energy demand has been determined it has to be converted into emissions as input for calculation 2 to 6. If
primary energy demand is not specified in local legislation or has not been historically recorded, final energy demand is used as an
alternative. The year selected as the national average in the PCAF European building emission factor database was 2020, in line
with a conservative methodology for the older buildings. This approach is used when no better data is available, which is most
often the case for older properties.
BCR decided to use emission conversion factors based on statistical data on energy mixes and emission intensities. These factors
are also a key component in the development of scenarios for the future in the decarbonisation model. In addition, conversion
factors obtained in this manner comes with the advantage, that where in-house portfolio data are available, national averages may
be substituted by the relevant portfolio data (e.g. if the gas portion in the portfolio is below/above the national average). Moreover,
this internally developed emission conversion factor enables Erste Group to apply values tailored to the specific heating medium
used, thereby aligning with Erste Group's financed data rather than relying on national averages. Main data source for the energy
mixes and electricity-based emission intensities of the core countries were Eurostat and Electricity map( 10) and for the heating-
based emission intensities, the German UBA( 11).
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Financed emissions

2025 | Credit exposure | Credit exposure covered by emission calculation | Financed emissions, thousand tCO 2 e 1,2 | Emission intensity in tCO2e/RON million | Weighted data quality (High=1, Low=5) | Weighted average carbon intensity (WACI) in gCO2e/RON revenue
| in RON million | in RON million | scope 1 and 2 | scope 3 2,3 | scope 1 and 2 | scope 3 | scope 1 and 2 | scope 3 | scope 1 and 2 | scope 3
per PCAF asset class
Corporate bonds |  | 5 | - | - | 1 | 5 | 4.0 | 4.0 | 14 | 62
Business loans |  | 23,846 | 645 | 3,433 | 27 | 144 | 3.7 | 3.8 | 178 | 578
Project finance |  | 1,601 | 1 | 12 | 1 | 8 | 2.3 | 3.5 | 687 | 258
Mortgages |  | 20,423 | 137 | - | 7 | - | 3.3 | - | - | -
Commercial real estate |  | 3,364 | 8 | - | 2 | - | 3.1 | - | - | -
Total | 155,045 | 49,239 | 791 | 3,445 | 16 | 70 | 3.5 | 3.7 | 210 | 558
per sector |  |  |  |  |  |  |  |  |  |
Natural resources & commodities | 4,442 | 2,786 | 114 | 137 | 41 | 49 | 3.8 | 3.8 | 253 | 257
Energy | 14,049 | 5,862 | 290 | 1,625 | 50 | 277 | 2.5 | 2.8 | 555 | 1,342
Construction | 8,886 | 3,339 | 123 | 182 | 37 | 55 | 4.1 | 4.2 | 230 | 342
Automotive | 2,563 | 1,773 | 16 | 1,041 | 9 | 587 | 3.7 | 3.7 | 28 | 1,166
Cyclical consumer goods | 1,851 | 1,078 | 17 | 28 | 16 | 26 | 4.1 | 4.2 | 74 | 127
Non-cyclical consumer goods | 4,786 | 2,634 | 49 | 308 | 18 | 117 | 3.5 | 3.7 | 75 | 506
Machinery | 1,484 | 519 | 5 | 21 | 9 | 41 | 4.0 | 3.9 | 47 | 239
Transporta- tion | 4,453 | 2,996 | 10 | 33 | 3 | 11 | 4.2 | 4.2 | 36 | 116
TMT | 826 | 503 | 5 | 11 | 9 | 21 | 4.1 | 4.1 | 31 | 93
Healthcare & Services | 3,589 | 2,412 | 12 | 44 | 5 | 18 | 3.9 | 4.2 | 42 | 131
Hotels and Leisure | 513 | 399 | 2 | 7 | 4 | 18 | 4.4 | 4.5 | 26 | 123
Real estate | 4,528 | 4,047 | 9 | 5 | 2 | 1 | 3.3 | 4.1 | 29 | 70
Public sector | 53,818 | 6 | - | - | 5 | 24 | 4.1 | 4.1 | 22 | 104
Financial institutions | 11,262 | 462 | 2 | 3 | 5 | 8 | 3.7 | 3.8 | 37 | 86
Private customers | 37,995 | 20,423 | 137 |  | 7 |  | 3.3 |  | 16 |
Total | 155,045 | 49,239 | 791 | 3,445 | 16 | 70 | 3.5 | 3.7 | 210 | 558
of which category 13 (Downstream Leased Assets)
|  | 2,763 | 77 | 69 | 28 | 25 | 5.0 | 5.0 |  |
according to risk countries
Romania |  | 48,688 | 790 | 3,442 | 16 | 71 | 3.5 | 3.7 | 213 | 568
Belgium |  | 54 | - | 1 | 4 | 23 | 4.0 | 4.0 | 19 | 119
Netherlands |  | 339 | 1 | 1 | 2 | 2 | 4.0 | 4.0 | 84 | 110
UnitedStates |  | 113 | - | 1 | 1 | 5 | 4.0 | 4.0 | 20 | 79
Slovakia |  | 7 | - | - | 27 | 31 | 2.0 | 2.0 | 158 | 184
Switzerland |  | 5 | - | - | 13 | 63 | 3.9 | 4.0 | 11 | 56
Lithuania |  | 5 | - | - | 18 | 21 | 2.0 | 2.0 | 158 | 184
Germany |  | 6 | - | - | 7 | 8 | 4.5 | 5.0 | 10 | 18
UK |  | 11 | - | - | 3 | 4 | 3.7 | 4.0 | 10 | 71
Italy |  | 3 | - | - | 7 | - | 3.8 | - | - | -
Remaining Countries |  | 8 | - | - | 7 | 1 | 3.6 | 4.9 | 9 | 151
Total | 155,045 | 49,239 | 791 | 3,445 | 16 | 70 | 3.5 | 3.7 | 210 | 558

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1 For details on the calculation of financed emissions see Methodology
2 Financed emissions also include category 13 ‘Downstream Leased Assets’ of BCR Group scope 3 emissions, which are shown separately as a sub-category.
3 Where BCR Group uses reported emissions for calculating scope 3 emissions, this includes – if both are reported – both upstream and downstream emissions. Where BCR Group uses emissions with national emission
factors from the PCAF database, only scope 3 upstream emissions are accounted for due to data availability. The data quality score for scope 3 emissions is therefore reported separately.

2024 | Credit exposure | Credit exposure covered by emission calculation | Financed emissions, thousand tCO 2 e 1,2 | Emission intensity in tCO2e/RON million | Weighted data quality (High=1, Low=5) | Weighted average carbon intensity (WACI) in gCO2e/RON revenue
| in RON million | in RON million | scope 1 and 2 | scope 3 2,3 | scope 3 | scope 1 and 2 | scope 3 | scope 1 and 2 | scope 3
per PCAF asset class |  |  |  |  |  |  |  |  |
Corporate bonds |  | 13 | - | - | 8 | 4.0 | 4.0 | 14 | 62
Business loans |  | 22,157 | 688 | 3,041 | 168 | 3.7 | 3.8 | 131 | 581
Project finance |  | 859 | 3 | 13 | 19 | 3.8 | 3.8 | 368 | 1,393
Mortgages |  | 19,231 | 277 | - | 14 | 3.3 | - | - | -
Commercial real estate |  | 3,437 | 12 | - | 4 | 3.0 | - | - | -
Total | 141,059 | 45,697 | 980 | 3,054 | 88 | 3.5 | 3.8 | 138 | 612
per sector |  |  |  |  |  |  |  |  |
Natural resources & commodities | 5,235 | 3,427 | 143 | 645 | 230 | 3.8 | 3.9 | 113 | 508
Energy | 11,907 | 4,556 | 273 | 1,096 | 300 | 2.7 | 2.8 | 396 | 1,588
Construction | 8,250 | 3,485 | 165 | 200 | 105 | 4.2 | 4.2 | 263 | 319
Automotive | 2,266 | 1,514 | 11 | 703 | 472 | 3.4 | 3.4 | 18 | 1,166
Cyclical consumer goods | 1,844 | 1,068 | 18 | 27 | 42 | 4.2 | 4.2 | 71 | 108
Non-cyclical consumer goods | 4,342 | 2,786 | 44 | 188 | 83 | 3.6 | 3.7 | 64 | 277
Machinery | 1,142 | 498 | 5 | 15 | 42 | 4.1 | 4.0 | 49 | 140
Transportation | 4,614 | 2,552 | 11 | 112 | 48 | 4.5 | 4.5 | 17 | 176
TMT | 746 | 508 | 6 | 15 | 40 | 4.1 | 4.1 | 41 | 109
Healthcare & Services | 2,824 | 1,587 | 10 | 41 | 32 | 4.2 | 4.2 | 35 | 139
Hotels and Leisure | 493 | 384 | 3 | 6 | 24 | 4.3 | 4.5 | 26 | 117
Real estate | 3,906 | 3,799 | 14 | 5 | 5 | 3.1 | 4.0 | 104 | 187
Public sector | 48,362 | 1 | - | - | 42 | 4.2 | 4.2 | 22 | 104
Financial institutions | 10,943 | 302 | - | 1 | 6 | 4.2 | 4.2 | 27 | 113
Private customers | 33,931 | 19,230 | 277 |  | 14 | 3.3 | 5.0 | 16 | 20
Other sectors | 254 | - | - | - | 9 | 5.0 | 5.0 | 88 | 274
Total | 141,059 | 45,697 | 980 | 3,054 | 88 | 3.5 | 3.8 | 138 | 612
of which category 13 (Downstream Leased Assets) | - | 2,409 | 63 | 58 | 50 | 5.0 | 5.0 | - | -

Detailed results by PCAF asset class
Corporate bonds
Corporate bonds with a volume of RON 5 million account for 0.03 thousands tCO2 (2024: RON 13 million account for 0.1
thousands tCO2e) in financed emissions and an emission intensity of 6 tCO2e/ RON million (2024: 8 tCO2e/ RON million).
Business loans
Business loans in the amount of RON 23,846 million (2024: RON 22,157 million) are a major source of financed emissions, because
of both their absolute amount of 4,078 thousands tCO2e (2024: 3,728 thousands tCO2e) and financed emission intensity of 171
tCO2e/RON million (2024: 168 tCO2e/RON million). Business loans comprise financing granted to large international and national
corporates, small and medium-sized enterprises as well as micro entrepreneurs (non-financial corporates).
Project finance
The project finance portfolio had a moderate exposure of RON 1,601 million (2024: RON 859 million) and 14 thousands tCO2e
(2024: 16 thousands tCO2e) of financed emissions and an emission intensity of 9 tCO2e/RON million (2024: 19 tCO2e/RON
million).
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Commercial real estate
Commercial real estate accounted for an exposure of RON 3,364 million (2024: RON 3,438 million), with emissions of 8 thousands
tCO2e (2024: 12 thousands tCO2e).
Mortgages
Retail mortgages with an exposure of RON 20,423 million (2024: RON 19,231 million) were the second largest contributor of
absolute emissions with 137 thousands tCO2e (2024: 277 thousands tCO2e).
Detailed results by sector
BCR used its in-house customer segmentation by sectors for the purpose of PCAF measuring and disclosure of financed emissions.
The sector posting the highest financed emission intensity for scope 1 and 2 of 292 tCO2e/RON million, was the Energy industry,
with a credit exposure covered in the emission calculation of RON 5.9 billion.
The sector posting the highest financed emission intensity (scope 1, 2 and 3), of 596 tCO2e/RON million, was the Automotive
industry, with a credit exposure covered in the emission calculation of RON 1.8 billion.
Detailed results by data quality
BCR relies on the PCAF methodology for scoring data quality (data availability), where the scale ranges from a score of DQ 1 (=
highest data quality) to DQ 5 (= lowest data quality). The data quality of the calculations reflects the high dependence on sectoral
emission factors, as relevant customer information was not widely available. Reported emissions in the corporate customers
segment are currently not distinguished between verified and non-verified and therefore the DQ 2 is applied, following a
conservative approach.
The weighted average data quality of the quantified portfolio was 3.4 as of 2025 reporting and thus improved versus the previous
year (2024: 3.5). The table shows a breakdown of financed emissions distinguished by data availability (energy performance
certificates for the real estate sector and reported emissions for the other PCAF asset classes).
BCR is disclosing financed emissions from clients reported emissions or derived from an available energy performance certificate
separately from financed emissions where it used PCAF factors to calculate financed emissions. The share of emissions derived
from reported emissions or an available energy performance certificate amounts to 46 % (2024 46 %) of the credit exposure (covered
by the emission calculations) and 71 % (2024: 69 %) of financed emissions (Scope 1+2+3).
For corporate segments, the emission intensity (tCO2e/RON million) is lower where BCR Group uses PCAF factors to calculate
emissions. For scope 3 this is mainly driven by the fact that PCAF emission factors only contain upstream emissions. Also, the
scope 1 and 2 emission intensity for corporate clients are higher in the reported emissions segment. One of the drivers can be
unequal industry distribution as clients in carbon intensive sector are more likely in scope of emission disclosure requirements.
Financed emissions by data quality

| Credit exposure covered by calculated emissions | Financed emissions, thousand tCO 2 e | Emission intensity tCO 2 e/in RON million | Weighted data quality (High = 1, Low = 5)
| in RON million | scope 1 and 2 | scope 3 | scope 1 and 2 | scope 3 | scope 1 and 2 | scope 3
Total 2025 | 49,239 | 792 | 3,446 | 16 | 135 | 3.5 | 3.7
Reported emissions / energy performance certificate available (by PCAF asset class)
Corporate bonds 1 |  |  |  |  |  |  |
Business loans 1 | 5,311 | 137 | 2,787 | 26 | 525 | 2.0 | 2.0
Project finance 1 | 418 | 1 | 9 | 2 | 22 | 2.0 | 2.0
Mortgages 2 | 14,054 | 70 | 0 | 5 | 0 | 3.0 | 0.0
Commercial real estate 2 | 3,003 | 7 | 0 | 2 | 0 | 3.0 | 0.0
Total | 22,786 | 215 | 2,796 | 9 | 488 | 2.7 | 2.0
No Reported emissions / no energy performance certificate available (by PCAF asset class)
Corporate bonds | 5 | 0 | 0 | 1 | 5 | 4.0 | 4.0
Business loans | 18,535 | 508 | 646 | 27 | 35 | 4.2 | 4.3
Project finance | 1,182 | 1 | 3 | 1 | 3 | 2.4 | 4.0
Mortgages | 6,370 | 66 | 0 | 10 | 0 | 4.1 | 0.0
Commercial real estate | 361 | 1 | 0 | 3 | 0 | 3.5 | 0.0
Total | 26,453 | 576 | 649 | 22 | 33 | 4.1 | 4.2

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1 Availability of reported emissions for corporate bonds / business loans : reported emissions are available for all scopes that are of relevance for calculating financed emissions (equivalent to DQ 2).
2 Availability of energy performance certificate for mortgages and commercial real estate: energy performance certificate is available and has been used for calculating financed emissions (equivalent to DQ 3).

| Credit exposure covered by calculated emissions | Financed emissions, thousand tCO 2 e | Emission intensity tCO 2 e/in RON million | Weighted data quality (High = 1, Low = 5)
| In RON million | scope 1 and 2 | scope 3 | scope 1 and 2 | scope 3 | scope 1, 2 and 3 | scope 3
Total 2024 | 45,697 | 980 | 3,054 | 21 | 133 | 3.5 | 3.8
Reported emissions / energy performance certificate available (by PCAF asset class)
Corporate bonds 1 | - | - | - | - | - | - | -
Business loans 1 | 4,958 | 217 | 2,416 | 44 | 487 | 2.0 | 2.0
Project finance 1 | 69 | 1 | 7 | 9 | 102 | 2.0 | 2.0
Mortgages 2 | 13,104 | 146 | - | 11 | - | 3.0 | -
Commercial real estate 2 | 3,093 | 10 | - | 3 | 0 | 3.0 | -
Total | 21,224 | 374 | 2,423 | 18 | 482 | 2.8 | 2.0
No Reported emissions / no energy performance certificate available (by PCAF asset class)
Corporate bonds | 13 | - | - | 1 | 6 | 4.0 | 4.0
Business loans | 17,199 | 470 | 625 | 27 | 36 | 4.2 | 4.3
Project finance | 790 | 3 | 6 | 4 | 7 | 4.0 | 4.0
Mortgages | 6,126 | 131 | - | 21 | - | 4.1 | -
Commercial real estate | 345 | 2 | - | 7 | - | 3.2 | -
Total | 24,473 | 606 | 631 | 25 | 35 | 4.2 | 4.3

Sovereign emissions
BCR’s sovereign emissions stand at 0.8 million tCO2e including land use, land change and forestry (LULUCF) and 1.4 million
tCO2e excluding LULUCF. The decision to report them separately from other financed emissions is driven by the fact that
sovereign scope 1 emissions include the whole production of a country, thus leading to double counting of financed emissions.
Additionally, it is important to note that sovereign emissions will decarbonise automatically when the respective country is
decarbonizing. For the calculation of Sovereign emissions, BCR applies the PCAF database as of September 2025. The database
provides mainly 2021 figures, expressed in million USD. For the calculation of sovereign emissions, the USD/EUR FX rate of the
respective emission factor year is applied.

Sovereign emissions - 2025 | Credit exposure covered by emissions calculation | Financed emissions, thousand tCO2e | Emission intensity tCO2e/RON million | weighted data quality
Country | in RON million | scope 1 incl. LULUCF 1 | scope 1 excl. LULUCF 1 | scope 1 incl. LULUCF 1 | scope 1 excl. LULUCF 1 | scope 1 2
Romania | 38,617 | 819 | 1,427 | 21 | 37 | 1
United States | 44 | 2 | 3 | 53 | 60 | 1
Total | 38,661 | 821 | 1,430 | 21 | 37 | 1

1 Land use, land change and forestry (LULUCF)
2 no change between incl. and excl. LULUCF

Sovereign emissions - 2024 | Credit exposure covered by emissions calculation | Financed emissions, thousand tCO2e | Emission intensity tCO2e/RON million | weighted data quality
Country | in RON million | scope 1 incl. LULUCF 1 | scope 1 excl. LULUCF 1 | scope 1 incl. LULUCF 1 | scope 1 excl. LULUCF 1 | scope 1 2
Romania | 35,582 | 772 | 1,348 | 22 | 38 | 1
United States | 48 | 3 | 3 | 55 | 62 | 1
Total | 35,630 | 775 | 1,351 | 22 | 38 | 1

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12.2.3 Biodiversity and ecosystems
Biodiversity or biological diversity can be understood as the variety of life, and refers to the uniqueness of all living things.
Biodiversity loss can lead to the extinction of species and the depletion of genetic variations. This can have a far-reaching impact on
the food chain and the dynamics of ecosystems, on which humanity thrives.
BCR Group has assessed its biodiversity-related impacts, dependencies, risks, and opportunities and is disclosing information
related to the identified material negative impact. BCR Group recognizes the indirect impact its financing can have on biodiversity
through soil sealing which is one of the five impact drivers included in ESRS E4.
E4 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL

Sustainability matter | Type of IRO | IRO description | Value chain | Time horizon
E4- Impacts on the extent and condition of ecosystems Examples: Land degradation; Desertification; Soil sealing | Negative impact* | Financing real estate and public infrastructure projects can have a negative impact on biodiversity as soil is sealed and land is degraded, thus causing increased flooding risks, climate change exacerbation, and possible health issues caused by decreased air and water quality. | Downstream | All time horizons

*In line with the methodology applied for the DMA, if not otherwise indicated, the short-term impact is actual, whilst for medium and long time horizons the impact is potential.
SOIL SEALING
The EU Soil Strategy for 2030 emphasises that soil sealing is highly relevant topic for Europe and efforts towards sustainable use of
soils are a key driver in reaching climate neutrality as well. Soil sealing has substantial negative impacts on the environment and
society, including the loss of essential ecosystem services, increased flood risks, and more intense urban heat island effects.
Additionally, soil sealing can contribute to water scarcity, as sealed surfaces prevent the natural infiltration of water into the
ground.
The relationship between biodiversity and financial institutions is indirect. BCR Group finances companies that are, at least partly,
dependent on ecosystem services to produce goods and services. Soil sealing has been evaluated in the 2025 Double Materiality
Assessment as a short term actual negative impact, which could extend on medium and long term time horizons as well (potential
negative impact). This negative impact on biodiversity is originating from the Bank’s portfolio activities, in particular the financing
of real estate, development of new facilities and energy projects that involve sealing the land. Commercial and retail real estate
accounts for 28% of BCR ’s portfolio activities, to which construction related activities from other sectors might be added, therefore
we indirectly contribute to the effects entailed by sealing the soil. Further information can be found in the Note 28 in the
Consolidated and Separate Financial Statements, under the sections ‘Credit Risk Exposure by Industry and Risk Category’ and
‘Credit Risk Exposure by Financial Instrument and Collateral’.
BCR Group has not identified any biodiversity related material direct impact or risks and sensitive areas associated with its offices
or branch locations, nor material negative impacts related to land degradation and land desertification.
E4-1 – TRANSITION PLAN AND CONSIDERATION OF BIODIVERSITY AND
ECOSYSTEMS IN STRATEGY AND BUSINESS MODEL
BCR GROUP’S BUSINESS ENVIRONMENT
BCR Group has analysed the business environment in which it operates and performed an analysis of the resilience of its business
model. As part of the resilience analysis, both physical and transitional risks were tracked and analysed for our portofolio. Within
this framework, biodiversity loss is categorised under other-environmental risks. There were no impacts, risks and opportunities
identified and upstream value chain has not been assessed.
The assessment covers short, medium, and long-term horizons. The time horizons used for the assessment of the business
environment and resilience are defined by risk management and are as follows:
127
— Short-term: 0-1 year.
— Medium-term: 1-5 years.
— Long-term: more than 5 years (up to 2050).
Currently, systematic external stakeholder involvement in the analysis of this topic has not yet been established. However, an
ongoing dialog is conducted with stakeholders such as supervisory and regulatory authorities, investors, analysts, and rating
agencies, as well as academic and environmental institutions and NGOs. The aspects covered during these dialogues were also
considered in the assessment of the topic as material based on the consolidated input provided by our internal experts.
RESULTS OF THE RESILIENCE ANALYSIS
The evaluation for the resilience analysis was carried out in a holistic and qualitative manner and was coordinated by Erste Group.
The primary goal was to illustrate how the business models of Erste Group and BCR Group could be influenced by various climate
and environmental risk factors. Biodiversity and ecosystem-related physical and transition risks are not yet covered
comprehensively by the resilience analysis. Still, no significant threats to the business model or strategy, when considering
biodiversity and ecosystems-related physical or transition risks within the existing analysis, were identified for BCR Group.
Systemic risks are not treated as a separate risk type, but are indirectly covered when transition and physical risks are assessed
based on comprehensive stress testing.
STRATEGY AND BUSINESS MODEL
Supported by Erste Group, BCR Group is assessing its strategy and business model in light of the resilience analysis. BCR Group
uses ESG Factor Heatmaps for SMEs and ESG questionnaires for large corporate in its loan application process (for its banking
activities), and engages with clients and takes environmental policies into account when deciding on new products and services.
E4-2 – POLICIES RELATED TO BIODIVERSITY AND ECOSYSTEMS
BCR Group has not yet developed a policy to address the material negative impact identified under this sustainability topic. But as
an immediate step, BCR Group Responsible Financing Policy has been complemented with restrictions to finance activities or
projects that may impact protected areas. Therefore, BCR Group will not provide financing and any other banking services to
entities that:
— contribute to degradation of land by adopting intensive practices.
— practice land abandonment and neglect, especially by using agricultural land for other purposes, with the exceptions permitted
by law.
BCR Group Responsible Financing Policy does not directly address social consequences of biodiversity and ecosystems-related
impacts.
Once having established a methodology to estimate or measure the actual contribution to soil sealing from its financed portfolio,
BCR Group shall focus on developing a strategy, establish more actions and set targets to reduce negative impacts on biodiversity
and ecosystems from soil sealing. Material dependencies, physical and transition as well as systemic risks and opportunities are
currently not covered.
BCR GROUP RESPONSIBLE FINANCING POLICY
BCR Group Responsible Financing Policy, which is implemented within the Bank and BCR Leasing IFN S.A., establishes the
exclusion criteria for financing of the Energy, Defense/Weapons, Biodiversity and Gaming & Gambling sectors. In the Double
Materiality Assessment, BCR Group has identified a material negative impact related to its financed portfolio for the biodiversity
subtopic soil sealing. As a result, BCR Group has broadened the scope of this policy and implemented exclusion criteria regarding
activities and projects in protected areas, or with adverse impact on protected areas, as a first step to reduce the identified negative
impact. BCR Group will not finance any activities with material adverse effect on protected areas. An environmental impact
assessment of the project must be carried out to assess all potential impacts. If the impact assessment confirms that satisfactory
mitigation measures have been taken to compensate for any negative impacts of the project on the protected area, the project may
be financed. This policy supports the overseeing of the portfolio and contributes to addressing the identified material impact related
to soil sealing. Through defined exclusion and non-eligibility criteria, BCR Group aims to eliminate, prevent and mitigate
ecosystem-related impacts. Compliance is monitored as part of the regular loan origination process. BCR Group’s Responsible
Financing Policy does not consider any third-party standards or initiatives.
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BCR Group has established a structure and governance model for executing decisions within the scope of the Responsible
Financing Policy and has implemented both a first (carried out by the business function) and second (carried out by the non-
financial risk management function) line of defense holding responsibilities concerning the application of this policy. BCR Group
Responsible Financing Policy is owned by the Sustainability Department, it has been communicated to employees, including as
part of the onboarding training for the corporate coverage teams, and is available on BCR’s internal website. E xternal stakeholders
have also received the policy via email to enable them to better understand BCR Group's approach and implementation status of an
Environmental and Social Management System required under bilateral cooperation agreements with these stakeholders.
The principles described in this policy are reviewed at least annually, however, more frequent updates are made whenever BCR
Group deems it necessary.
More information concerning BCR Group Responsible Financing Policy can be found in 'E1-2 Policies and transition measures for
climate change mitigation and adaptation'.
E4-3 – ACTIONS AND RESOURCES RELATED TO BIODIVERSITY AND ECOSYSTEMS
Besides the policy aspects described above, specific actions have not yet been established. The identified material impact of soil
sealing will trigger more comprehensive disclosures in the upcoming years. Following the identification of the biodiversity related
material impact, specific actions will be defined in the upcoming years based on a more in-depth analysis.
E4-4 – TARGETS RELATED TO BIODIVERSITY AND ECOSYSTEMS
Specific targets have not yet been established. The identified material impact of soil sealing will trigger more comprehensive
disclosures in the upcoming years.
E4-5 – IMPACT METRICS RELATED TO BIODIVERSITY AND ECOSYSTEMS CHANGE
Specific metrics related to the identified material impact of soil sealing in BCR Group’s portfolio have not yet been established and
thus are not provided in this year reporting. BCR Group does not disclose biodiversity metrics relating to its own operations,
because it has no material impact on biodiversity-sensitive areas, nor associated risks.
12.3 Social information
12.3.1 Own workforce
The successful continuous development of BCR Group, of its corporate culture and competences, are driven by its employees. As
such, BCR Group places great importance on recruiting, retaining, and engaging a highly qualified workforce. At the same time, it
strives to be the employer of choice in the country in the financial sector by providing opportunities for training and continous
professional development, working in diverse and international teams, as well as stimulating tasks within a flexible organization.
BCR Group promotes modern working methods that support flexible, adaptive, and client-centric work.
S1 SBM3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTIONS WITH STRATEGY AND BUSINESS MODEL
This chapter provides an overview of the impacts, risks and opportunities (IROs) related to BCR Group, as identified in the DMA
process and further detailed below. Policies and actions related to IROs identified extend to own employees excluding non-
employees.
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Sustainability Matter | Type of IRO | IRO Description | Value chain | Time horizon
S1-Collective bargaining, including rate of workers covered by collective agreements | Actual Positive impact | The existence of a collective bargaining agreement ensures that employees benefit from consistent and transparent employment conditions, including fair and adequate wages, which contributes to job security and strengthens trust in the organization. | Own operations | Short-term
S1-Work-life balance | Actual Positive impact | BCR Group fosters a good balance between career and personal life through its @Valued at BCR initiative which positively impacts the standard of living and satisfaction of employees. By focusing on the physical and mental health of employees BCR Group continuously expands its health offerings to ensure access to quality medical support. | Own operations | Short-term
S1 - Gender equality and equal pay for work of equal value | Negative impact* | The current gender pay gap at BCR Group disadvantages the affected employees. | Own operations | Short to Medium term
S1-Training and skills development | Opportunity | Initiatives like BCR Academies, Școala de Cariere (to prepare young talent for labor market), and the Learning Hub (internal training hub) help attract young talent, improve employee capabilities, and reduce turnover-related costs. | Own operations | Medium to Long-term
S1-Diversity | Potential Positive impact | Diversity initiatives at BCR Group have a positive impact on employees by fostering an inclusive corporate culture. These efforts create an open environment where acceptance and support are prioritized, allowing all employees to feel valued and empowered. | Own operations | Short-term

*In line with the methodology applied for the 2025 DMA the short-term negative impact related to equal pay for work of equal value is actual, whilst for medium time horizon the impact is potential considering the mitigation
actions in place (please refer to section 'S1-4 - Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce and effectiveness of
those actions').
Collective bargaining agreement
BCR Group's strategy includes ensuring fair and standardized wages for all employees across all its subsidiaries, via a collective
agreement. This approach promotes financial well-being and equal pay. It also affirms our commitment to include our employees,
through their representatives, in deciding all major aspects of their employment life such as remuneration and other financial
benefits, working time and flexible working arrangements (including remote work), support in case of redundancies, retirement
and other personal life events. The local banking sector has a sectorial collective bargaining agreement in place since 2024, but BCR
Group is going beyond the provision of this agreement in terms of compensation and benefits, as a differentiator on the local
market.
Work-life balance
A work environment that allows employees to achieve a sound work-life-balance is essential for BCR Group’s attractiveness as an
employer and for the engagement of its staff. BCR Group supports flexible working hours, balancing family life with work.
To this aim, BCR Group’s overarching strategy is to encourage employees to actively manage their work-life balance by using
various options that are in place. Developing healthy self-management skills, and the ability to set coherent priorities are crucial for
the employees to work effectively and maintain a good balance between time at work and private time. Hybrid working, which
combines working from home and in the office, has become the new normal in working life.
Whether a job is structured as part-time or full-time, onsite or remote, BCR Group offers options in terms of working arrangements,
that can be used while always putting emphasis on collaboration, productivity and efficiency at work.
Supporting work-life balance also means caring for the physical and mental well-being of our employees and their families. To this
end, BCR Group ensures timely access to medical care through a comprehensive health services package offered in partnership
with leading private healthcare providers in Romania.
Gender equality and equal pay for work of equal value
Gender equality is a core value for BCR Group, embedded in our culture, governance practices and people management approach.
We maintain a strong focus on female representation across all management roles and continuously monitor our progress f or
underrepresented gender, women in leadership roles and succession planning. Through these measures we aim to ensure balanced
opportunities for career growth. Based on our most recent Double Materiality Assessment, gender equality and equal pay for work
of equal value is identified as having a material impact based on the equal pay for work of equal value considerations mostly
interlinked with gender pay gap. Further information on how BCR Group manages gender equality matters is provided together
with diversity related disclosures.
Gender pay equity has been identified as a topic with an actua l negative material impact, consistently with the assessment
performed across all Erste Group entities. This impact is primarily linked to the level of the unadjusted gender pay gap.
The unadjusted gap is largely driven by structural and demographic factors, including the uneven distribution of women and men
across job families. A higher concentration of men is observed in technical and specialist roles that are typically associated with
12 PwC Gender Pay Gap Report, 2024 (https://hrleadersportal.pwc.com/media/1408/pwc-romania-gender-pay-gap-report-2024.pdf)
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higher remuneration, while women are more frequently found in administrative or customer-facing roles, which generally have
lower pay ranges. While the bank's pay gap reflects the wider context of the Romanian financial sector, our current unadjusted
gender pay gap is positioned in line with competitors within the financial industry, as indicated by recent market data collected in
the latest edition of the PwC survey( 12).
Notably, the adjusted gender pay gap—which accounts for factors such as job role, seniority level, and scope of responsibility—
shows a significant positive trend as described in chapter 'S1-4 - Taking action on material impacts on own workforce, and
approaches to managing material risks and pursuing material opportunities related to own workforce and effectiveness of those
actions', reflecting the bank's commitment to pay equity for comparable work.
Training and skills development
Continuous training and skills development represent a material opportunity to strengthen organizational resilience and sustain
competitive advantage. Rapid technological advancements, evolving regulatory requirements, and changing customer expectations
demand a workforce equipped with up-to-date expertise and future-ready capabilities. Investing in structured learning programs
helps ensure that employees can deliver high-quality, compliant, and innovative banking solutions.
Training initiatives focuses on enhancing technical knowledge, digital & AI literacy, and risk management skills, which are critical
for providing a comprehensive range of financial services - from lending and investment products to payment solutions and
advisory services. These programs also support the development of analytical and customer-centric competencies, enabling
employees to respond effectively to market shifts and client needs. Tailored programs build important capabilities, foster
innovation and keep the employees and organization competitive in a rapidly evolving market.
Leadership development remains a strategic priority, ensuring that future leaders possess the agility and decision-making
capabilities required in a highly regulated and fast-changing environment. Succession planning and talent management
frameworks are designed to secure continuity in governance and strategic execution, reinforcing trust and stability for stakeholders.
By aligning employee development with organizational objectives, BCR Group fosters engagement, productivity, and innovation.
This approach not only strengthens operational performance but also contributes to long-term financial sustainability.
Coordination of these initiatives is managed within the People & Culture division, ensuring consistency and alignment with
industry standards and regulatory expectations.
Diversity
BCR Group provides equal treatment and professional development options to ensure equal opportunities for all employees, with a
positive impact on its own workforce. Ensuring diversity inside the organization creates an open and inclusive corporate culture
which contributes to BCR Group being an attractive employer. BCR Group stands for a work culture that fosters a sense of
belonging and values the work of its employees. Measures include a commitment to greater transparency and gender equality in
remuneration, this being also a part of our people and culture strategy.
Non-material sustainability matters
BCR Group has not identified any material negative impacts on own workforce arising from transition plans aimed at reducing
negative impacts on the environment and achieving greener and climate-neutral operations. Also, the BCR Group did not identify
any significant risk of incidents of forced labor, compulsory labour or child labour and has not identified any sub-groups of their
employees that are at greater risk of harm.
S1-1 – POLICIES RELATED TO OWN WORKFORCE
The People & Culture strategy of BCR Group is designed to shape the business of tomorrow by empowering its people, placing
leadership mindset, accountability, impact and innovation at the center of future success. The people strategy redefines how BCR
attracts. leads, rewards, and develops talent, integrating leadership, performance, and culture into a unified framework that ensures
the right people are in the right roles, with the right behaviors.
The strateg y is supported by a set of workforce-related policies which contribute to fair working conditions, equal opportunities,
and continuous professional dev elopment.
HUMAN RIGHTS COMMITMENTS
The Code of Ethics, deriving from Erste Group Code of Conduct, is aligned with the provisions of the Romanian Labour Code and
other relevant national legislation. It is also structured in a manner which is consistent with the principles outlined by the
13 https://eur-lex.europa.eu/eli/dir/2013/36/oj/eng
14 https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12012E/TXT:en:PDF
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international standards and conventions (including, but not being limited to, the UN Guiding Principles on Business and Human
Rights which prohibits involvement in human trafficking, forced labour, or child labour). The Code of Ethics was last updated and
internally published in May 2025 and its principles essentially derive from the Universal Declaration of Human Rights, the ILO
Declaration on Fundamental Principles and Rights at Work and the United Nations Guiding Principles on Business and Human
Rights, amongst others.
BCR Group must, under no circumstances, be involved in human trafficking, forced labour, or child labour, nor should it benefit
from these practices in any way, the principle of human rights observance being the basis of all relations, also considering that the
rights and liberties shall, under no circumstances, be exerted in contrary manner to the goals and principles of the United Nations
Organization. This commitment aligns also with the principles outlined within ILO Convention No. 29 on Forced Labour, ILO
Convention No. 138 on the Minimum Age, and ILO Convention No. 105 on the Abolition of Forced Labour. Processes and
mechanisms to monitor compliance with these international standards and conventions include BCR Group’s regular procedures
as outlined in sections 'S1-2 - Processes for engaging with own workforce and workers' representatives about impacts' and 'S1-3 -
Processes to remediate negative impacts and channels for own workforce to raise concerns' from this report and are intended to
raise the concerns and include remedies, if the case, for negative impacts on human rights violation.
BCR Group further strengthens this commitment through direct and indirect engagement with its employees, and through clearly
defined processes to address any form of discrimination. Fair and reasonable remuneration is integral to compliance with labour
rights within BCR Group, and is governed by the Group Remuneration Policy.
BCR has a workplace accident Prevention Plan which includes specific measures to prevent work related accidents and it is revised
annually.
All BCR Group policies are revised as agreed with the National Bank of Romania, at every 12 or 36 months depending on the type
or scope of the policy. In addition, there are some other triggers for interim reviews, such as alignment to regulatory, business or
Erste Group requirements.
BCR policies and procedures are revised based on a general framework (BCR Group Policy Framework) that sets the key
requirements related to developing, maintaining, classifying, approving, and implementing policies and procedures in BCR and
BCR Group, as applicable. A monthly report on policies and procedures is used to make sure these are being updated regularly.
BCR Group policies and procedures are published on the BCR Intranet.
WORK-LIFE BALANCE
Work-life balance is steered under a common umbrella within BCR Group, rather than a standalone policy. However, healthcare
services are governed by the established terms of the collective bargaining agreement. A dedicated policy on work-life balance
matters was not deemed necessary as these elements are already provided in the Internal Regulation which is updated at least
annually.
GENDER EQUALITY AND EQUAL PAY FOR WORK OF EQUAL VALUE
Gender equality within BCR Group is governed by the Diversity and Inclusion Policy, stating BCR Group's commitment to make
continuous progress towards a gender-balanced management at all levels. To achieve this, several accompanying measures have
been taken, as described in section 'S1-4 - Taking action on material impacts on own workforce, and approaches to managing
material risks and pursuing material opportunities related to own workforce and effectiveness of those actions'.
The BCR Group reinforces its commitment to pay equity through a gender-neutral remuneration framework which is also
referenced by the Diversity and Inclusion Policy. This policy establishes that all employees receive equal pay for equal work,
maintaining full compliance with Directive on access to the activity of credit institutions and the prudential supervision of credit
institutions and investment firms( 13) and Article 157 of the Treaty on the Functioning of the European Union ('TFEU')( 14).
In addition, the topic of equal pay is covered by the Remuneration Policy, which is approved yearly by the Supervisory Board. This
policy reinforces gender equality and equal pay for work of equal value, as defined through structured job grading mechanisms. It
provides a standardized framework for designing pay structures, supports equal opportunities for professional development, and
addresses the gender pay gap through transparent remuneration practices and regular reviews.
The policy aims to attract and retain competent and committed employees who perform their roles in the long-term interests of the
BCR Group, its customers, and shareholders. It defines pay components, variable remuneration schemes, performance
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management processes, job structures, salary benchmarking, and both monetary and non-monetary rewards, all aligned with the
Group’s values and strategies. It applies to all BCR Group entities and is available to all employees via the intranet.
The remuneration framework applies to all employees of the BCR Group and members of the Supervisory Board. The
Remuneration Committee advises the Supervisory Board on, approving a nd overseeing remuneration-related policies. Its members,
appointed in accordance with regulatory requirements, possess expertise in remuneration practices, risk management, and control
activities. The committee considers the long-term interests of employees, shareholders, and other stakeholders and meets at least
twice a year to align remuneration strategies across the Group.
TRAINING AND SKILLS DEVELOPMENT
BCR Group aims to be the place where people embrace opportunities, learn every day, and collaboratively work together. Collective
contribution and impact should go beyond geography, entity, or business area borders. The training and skills development are
governed by BCR 'Recruitment, training and Human resources administration' policy and overarched by BCR People and Culture
strategy, applicable in BCR Group. These frameworks establish clear principles for fostering continuous learning, capability
building, and leadership development, ensuring alignment with organizational objectives and regulatory standards in the financial
sector.
BCR Group is committed to strategic workforce planning to enable more targeted recruitment and further development measures,
as well as driving employee growth through reskilling and upskilling initiatives, while supporting their financial literacy.
The design of our training and skills development processes involves multiple stakeholder groups, as follows:
— Talent Acquisition, Learn & Development teams as owners of the process and methodology - to enable efficient consultation,
alignment with the strategic objectives of BCR Group and feedback integration.
— HR Business Partners (HRBPs) - to support implementing teams and promote the processes among managers and employees.
— Senior Leadership (Top & Middle Management) - to validate priorities and ensure alignment with strategic objectives.
— People managers across all divisions – to provide operational insights and check for practical relevance.
— Employees – to express their views on the targeted curricula through focus groups, surveys, pilot groups, and feedback rounds.
— External partners (learning providers, leadership assessment specialists) – to benchmark and strengthen program design,
A structured and specific communication plan is used for every recruitment, training, and development processes, including but
not limited to: People & Culture intranet page, weekly newsletters, Viva Engage internal social platform, direct discussions with
stakeholders, emails, open-line sessions, HR Business talks.
Internal HR teams are assigned clear ownership for governance, implementation, and ongoing support. Budget and time resources
are allocated annually for leadership training and development programs, digital learning platforms, and external assessments
where needed. HR Business Partners were equipped to support teams during the training, performance and development cycles.
Attendance and completion rates for the mandatory training sessions are monitored yearly as to ensure that these are followed by
all employees. Optional training courses and dedicated development programs are monitored through attendance data and
feedback at the end of each iteration and program overall. This data serves as input for deciding upon the continuation of such
programs and/or for future enhancements such as the identification of key interest topics that should be further addressed.
Furthermore, feedback loops with HRBPs and managers ensure ongoing refinement of processes. These annual reviews of the
talent and development framework ensure alignment with strategy and evolving workforce needs.
The 'Recruitment, training and Human resources administration' policy is approved by the Management Board, its' principles are
applicable to all BCR Group entities, and is available to all employees on the communication channels listed in the section S1-3
"Processes to remediate negative impacts and channels for own workforce to raise concerns". BCR Group applies an Erste Group -
wide defined leadership framework that promotes accountability, ethical decision-making, and inclusion as well as future
orientation and servant leadership. Structured succession planning ensures continuity and prepares future leaders based on group-
wide leadership dimensions, supporting long-term organizational resilience.
Nomination and Suitability Assessment Policy for Management Body
The Nomination and Suitability Assessment Policy for Management Body outlines the process for assessing the suitability of
individuals who are members of the Management and Supervisory Boards; it also outlines the succession process for potential
members of its Supervisory and Management Board and training for the Management Body of BCR Group. This policy provides a
structured framework for defining a diverse succession list of potential candidates for these boards, and for monitoring the gender
balance targets as specified in the Diversity and Inclusion Policy. Specific criteria outlined in the succession planning part of the
Nomination and Suitability Assessment Policy for Management Body are used by the Erste Group Holding Management Board, in
collaboration with the local People and Culture division, to evaluate respective managers, based on performance and potential. The
results of all assessments form the basis for a pre-selection of potential successors, and are discussed in upcoming succession talks.
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Erste Group People and Culture department is responsible for developing and constantly reviewing the succession process for all
Management Bodies of the local banks. It also initiates the annual succession process and provides instructions and documentation
templates to the local People and Culture division.
The policy also provides a framework based on which the members of the Management Body are provided with proper induction
and training that are relevant and appropriate to the members’ individual and collective responsibilities, and meet the current and
future needs and strategic objectives of the Bank, in accordance with risk and regulatory compliance standards.
Following the periodical assessment/ re-assessment, the Nomination Committee is responsible for the preparation of an annual
training plan for Management Body members based on the training needs identified.
The Nomination and Suitability Assessment Policy for Management Body applies to BCR and subsidiaries, namely BCR Banca
pentru Locuinte and BCR Pensii SAFPP (except for the succession process).
The Nomination Committee of the Supervisory Board, is responsible for implementing this policy in BCR. People and Culture
Division, Legal, Governance and Public Affairs Division (Group Secretariat Department) and Compliance Division support the
Nomination Committee in all matters related to this Nomination and Suitability Assessment Policy.
The policy implements the Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management
body and key function holders under Directive 2013/36/EU and Directive 2014/65/EU (EBA/GL/2021/06), the EBA Guideline on
internal governance under Directive 2013/36/EU (EBA/GL/2021/05), the Circular Letter on the Suitability of members of the
Management Board, Supervisory Board, and Key Function Holders, and the ECB Guide for fit and proper assessments.
The Nomination and Suitability Assessment Policy for Management Body is available on the BCR Group Intranet.
Performance reviews and development talks
The performance management process is a group wide process designed to generate long-term impact. Each year, all employees
participate in performance discussions with their line managers to set goals for the current year and define development plans to
enable their ongoing personal and professional growth.
To further support consistency and quality in feedback conversations, BCR Group has introduced a structured and unified
performance management discussion framework for all managers. The performance management process is governed by the
Performance and Development Management Procedure which sets the framework, structure and steps of the performance
management process.
DIVERSITY
For BCR Group, an inclusive corporate culture means recognizing every employee in their individuality. BCR Group understands
diversity and inclusion as a mindset that obliges everyone to treat each other with respect, so that everyone feels safe to speak their
mind openly. BCR Group seeks to create an environment in which people are enabled to develop themselves, support each other
when facing challenges and bring out the absolute best in themselves and their peers.
The relations between the BCR Group and its employees are governed by the principle of non-discrimination and elimination of all
actions which would violate a person’s dignity, which is guaranteed by the Romanian Constitution. Any discrimination based on
reasons of race, nationality, ethnicity, language, religion, social category, age, opinions, gender or sexual orientation, disability,
chronic non-communicable disease, HIV infection, membership of a underprivileged group or on any other criterion which has as
purpose or as effect limiting or elimination of acknowledgment, use or lawful exercising of the fundamental human rights and
liberties provisioned by the law of a political, economic social and cultural type, or of any other types or domains of public life is
strictly forbidden.
By adopting and implementing the provisions of the Guide on preventing and combating gender-based and moral harassment in the
workplace, included in the Internal Regulation, and defining a procedure for dealing with discrimination and harassment cases, the
organization undertakes to ensure a safe environment for all employees, as per the requirements of the Diversity and Inclusion
Policy.
Diversity and Inclusion Policy
BCR Group’s Diversity and Inclusion Policy addresses the BCR Group’s impacts related to diversity and gender equality. Promoting
diversity within the organization fosters an open and inclusive corporate culture, which positively impacts employee’s well-being so
that they can develop and grow within BCR Group’s organization regardless of their protected characteristics.
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The purpose of this policy is to outline how BCR Group responds to the societal context in which it operates. It addresses
stakeholders’ expectations with regards to diversity and inclusion by defining the common understanding of these two concepts
within BCR Group and Erste Group. Additionally, it describes roles and responsibilities, as well as the general guidelines for
developing, implementing, and adjusting diversity and inclusion strategies and targets. Diversity management is part of our
corporate strategy and embraces dimensions like age, gender, origin as well as the cognitive diversity. The policy’s prohibited
grounds of discrimination, detailed within the Internal Regulation of BCR, fully align with those set out in the Romanian
Constitution and applicable legislation.
Embedded within the Erste Group People & Culture division, Erste Group Diversity Management (GDM) identifies key focus areas
(like gender balance, anti-discrimination and harassment, etc), and develops a diversity strategy in close collaboration with relevant
stakeholders, such as local Diversity Management, Group Communications and Group Corporate Affairs and Stakeholder
Management. GDM develops diversity targets which are subsequently transposed into the local Diversity and Inclusion Policy
approved by BCR Supervisory Board.
At local level, BCR established the function of “Local Diversity Manager” (LDM) who acts as a focal point for all diversity-related
issues of the bank. While GDM defines the general Group diversity strategy, LDM adapts measures, trainings and the Group
Diversity & Inclusion Policy, to suit local circumstances and priorities. Regular communication between GDM and LDM ensures
that a mutual understanding of diversity issues across Erste Group exists.
BCR Group strives to ensure equal opportunities of development for all employees. Thus, an important field of action, as per the
Diversity and Inclusion Policy is to ensure a discrimination-free environment, as a basic prerequisite for establishing an inclusive
working culture.
Besides the above-mentioned commitment to ensure a discrimination-free environment for all employees, there are no specific
policy commitments related to people from groups at particular risk of vulnerability in our own workforce.
The BCR Diversity and Inclusion Policy covers all BCR employees within own operations. The policy has also been adopted by the
following BCR subsidiaries: BCR Banca pentru Locuinte SA, BCR Pensii SAFPP SA and BCR Leasing IFN SA. The management
board holds the highest level of accountability for the implementation of the policy. The policy is monitored and reviewed annually
or whenever necessary, considering applicable legislation, regulatory requirements and revisions of Erste Group Diversity Policy.
S1-2 – PROCESSES FOR ENGAGING WITH OWN WORKFORCE AND WORKERS’
REPRESENTATIVES ABOUT IMPACTS
As a responsible employer, BCR Group recognizes the importance of engaging with its workforce and workers' representatives to
understand the impacts of its operations on its employees. One approach that BCR Group takes to foster positive impacts is by
supporting a feedback culture. BCR Group supports this culture by providing many channels for direct and indirect engagement
with employees, managers, teams, and communities such as Employee Engagement Survey, dedicated open lines, People & Culture
events, etc. This gives employees ample opportunities to voice their views and concerns and provide feedback on matters related to
our material IRO s such as work-life balance, learn & grow, psychological safety and any other topic. With the actions that BCR
Group takes it aims to prevent future negative impacts on its employees and to enhance the positive impacts.
The management board, in particular the CEO, is entrusted with the responsibility of managing the organization in a manner that
serves the best interests of the BCR Group, while considering the interests and concerns of employees.
DIRECT ENGAGEMENT
BCR Group engages directly with its employees through annual one-to-one performance reviews, as well as through the Group
internal social network, the Group engagement survey, various open lines and events dedicated to employees.
All engagement activities take place at entity level, but also at team, project or BCR Group community level. Particular measures to
improve culture and work environment may be taken by managers at unit level, as part of our non-structured response to
employee's feedback.
BCR Group promotes a work culture that values employees, supports a sense of belonging and facilitates internal communities
built around shared goals, values, and interests. These communities are facilitated by collaboration platforms designed to foster
professional networking, cross-functional knowledge exchange, and organizational engagement.
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We cultivate an inclusive and supportive culture consistent with our commitment to fair working conditions and equal
opportunities. By leveraging employee engagement, feedback and collaboration, BCR drives greater organizational cohesion,
ensuring every team member can contribute effectively to BCR Group's long-term goals.
The Magic Advisors Engagement community drives engagement activities in all business areas and ensures the communication of
actions through internal platform. This is an employee experience platform that fosters communication, collaboration and
community building within organizations. It is integrated with Microsoft Teams enabling employees to share updates, engage in
discussions and connect across departments. The engagement activities take place at department and division level and they are
centralized by the Community Manager. The most inspiring and impactful engagement activities are promoted on BCR Group's
intranet and on management level.
Performance management reviews
Talent management at BCR Group is driven by constructive feedback and by fair and transparent assessment of individual potential
and performance. An annual performance review meeting is conducted between each employee and their direct superior to discuss
the employee’s contribution and impact on BCR Group’s success, as well as their personal development plan. The division
management (B-1), as the most senior role, is required to consider the results of these discussions and maintain an overview of
performance and impact in their area of responsibility. Additionally, assessments of long-term performance and potential of
individuals can be made during talent reviews / succession planning sessions throughout the year.
For senior management (B-1 level), the performance and potential are assessed by a dedicated Performance Evaluation Committee
composed of members of the Management Body and People & Culture representatives ensuring calibration and cross functional
alignment.
Group -wide internal social network
Viva Engage is the internal social network that connects all colleagues across the Erste Group. Launched in June 2024, it facilitates
collaboration and communication within the group, offering us a shared space where we can exchange information, discuss ideas,
and solve problems in real time.
At BCR Group, colleagues interact in more than 25 niche communities on diverse topics: from financial education, AI, and digital
innovation to personal development, running, or football.
Echo is our new information and communication platform, launched at BCR in July 2025, which connects the entire Erste Group
in a single environment.
Echo is an information hub which integrates 3 former platforms into a modern, accessible place, built for connecting all BCR
Group employees. Together with Viva Engage, Echo, the new Group-wide intranet, forms a connected and integrated environment
way of working.
Engagement survey
BCR Group aims to strengthen its workplace culture by actively listening to employees and acting on their feedback. Employee
surveys provide insights into employee engagement levels, highlighting both strengths and areas for growth. BCR Group conducts
the survey on a yearly basis, as part of Erste Group Engagement Survey. The People & Culture division is responsible for
coordinating regular engagement surveys at BCR Group level and ensuring that feedback informs workforce-related decisions and
improvement plans.
The employee engagement survey serves as a highly valuable mechanism for receiving feedback from all employees. The
transparent nature of the results and feedback obtained from the survey enables the implementation of effective improvements and
action plan.
Feedback is collected from all employees through an internal platform that enables real-time feedback, sentiment analysis and
follow-up actions. This is based on a questionnaire addressing a variety of items, offering opportunity for open comments for each
item, plus two general comments which are thoroughly analyzed as qualitative feedback. All managers have access to the platform
and can view their teams’ results. Key engagement drivers are acknowledged and specific action plans are developed to address the
main improvement opportunities. The results are handled under strict confidentiality. All participants are informed of the
confidentiality framework at the beginning of the survey. In addition, the principles governing confidentiality are clearly outlined
in the intranet FAQs. Employee perspectives are integrated into the decision‑making process, and employees are informed about
how their feedback has influenced decisions through their managers and HR Business Partners in the first place.
Detailed engagement results are presented to the Management Board and overall engagement results are shared with all employees
via intranet.
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In 2025, BCR participated in the Erste Group employee engagement survey meant to measure employee engagement and to
enhance workplace quality. With a response rate of 87% (90% in 2024), BCR achieved an Employee Engagement Index score of 77
out of 100 points (81 out of 100 in 2024), inviting all employees to voice their opinions.
INDIRECT ENGAGEMENT VIA WORKERS' REPRESENTATIVES
In accordance with legal requirements (Romanian Labour Code and Law on Social Dialogue), BCR Group involves its employees in
management decisions via representative bodies in matters that directly affect employees.
In Romania, two representative trade union federations in the banking sector (including banks, savings banks, etc.) negotiate a
sector-wide collective agreement. This agreement establishes minimum financial rights that apply to all employees in the banking
sector.
In BCR, there are two trade unions, namely the BCR Independent Trade Union (SIBCR) and the BCR National Employees’ Union
(SNS BCR), which represent members’ interests. SIBCR is legally representative and negotiates collective agreements.
The unions secure ongoing collaboration between the management board and BCR employees. The unions meet periodically, at
least twice per year, with management board representatives, based on an Agenda brought forward by the unions. Minutes of these
meetings are communicated to unions, who further distribute them to their members. Relevant feedback is incorporated into our
people strategy, policies and procedures during revisions, ensuring that engagement outcomes influence decision-making.
The People and Culture Division also routinely convenes with the unions to maintain steady communication beyond legally
required topics. In 2025 we focused our bilateral conversations to the topic of understanding pay transparency, in the context of
collective labour bargaining process. Legally required information and consultation with the unions on topics relevant to
employees is documented formally, through email exchanges.
SIBCR has members in two BCR subsidiaries (BCR BPL and BCR Leasing) and participates in local dialogue and collective labor
agreement negotiations.
BCR subsidiaries continuously collaborate with employee representation bodies and have regular meetings between the
management board and the representative body.
The effectiveness of engagement with our employees is ensured through the various direct and indirect engagement opportunities
and the active usage of these formats. Additionally, the employee survey provides insights to continuously improve BCR Group’s
engagement efforts.
S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR OWN
WORKFORCE TO RAISE CONCERNS
Equal pay for work of equal value has been identified as a material topic with actual short and potential medium term negative
impact on workforce trust and engagement. It is specifically linked to the level of unadjusted gender pay gap (details in section
'S1-16 - Remuneration metrics (pay gap and total remuneration').
To mitigate and remediate this impact, BCR implemented and is running an ongoing structured pay equity process. This is
designed to reduce existing adjusted pay gaps, prevent the recurrence of inequities and ensure fairness at the individual level.
Together, they form the foundation for BCR's broader pay equity strategy detailed in 'S1-4 - Taking action on material impacts on
own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce and
effectiveness of those actions'.
Channels to raise concerns
BCR Group has established multiple channels through which employees can raise their concerns and have their needs addressed
by the organization:
— Line manager as the first contact point.
— Queries on AskHR team.
— Whistleblowing process (see also chapter 'G1-1 - Business conduct policies and corporate culture').
— W orkers’ representatives (see also chapter 'S1-2 - Processes for engaging with own workforce and workers' representatives about
impacts' for more details).
— Contact with the ethics advisors and the anti-discrimination channel.
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— Employee Engagement Survey (see chapter 'S1-2 - Processes for engaging with own workforce and workers' representatives
about impacts' for more details).
— Performance reviews (see chapter 'S1-2 - Processes for engaging with own workforce and workers' representatives about
impacts' for more details).
Due to the consistent rhythm of engagement opportunities and the multitude of channels available for employees to raise their
concerns and issues, without fear of retaliation, the measures taken to improve employee matters are regularly monitored with
consideration of employee interests on BCR Group level.
Line managers as the first point of contact, deal mostly with employees' day-to-day complaints. This is mostly an informal process -
however, should the employee decide to engage in a formal discussion with his/ her manager, he/she may document the
conversation and later escalate, according to local governance standards. The process is managed as normal course of business in
case of minor cases, conflicts or claims by People and Culture division, HR BP (Human Resources Business Partner) and Direct
Management function.
Queries on Ask HR, which is implemented by BCR, are tracked and monitored. For example, complaints sent by employees via
AskHR are monitored by complaint tracking on a dedicated call center app (7 received in 2025 as compared to 17 in 2024).
Whistleblowing channels ( internal & external)
The Whistleblowing process which is focused on BCR Group employees’ conduct and covers the following categories of
abatements: (a) Financial crimes (fraud, embezzlement, etc.), including theft (of material goods and information); (b) Breach of
internal regulations and legislation (Regulatory Compliance); (c) Infringement of securities and market regulations (insider
dealing, market manipulation, dissemination of false information); (d) Bribery and Corruption, including conflicts of interest
(invitations, gifts, extra-professional activities, intercompany relations, etc); (e) Money laundering/ terrorism financing; (f) Data
security, confidential information; (g) any act involving a violation of the law, international regulation, professional ethics, by a
member of staff/ suppliers/ partner of the Bank. The whistleblowing channel is actively promoted to third parties through the
company’s website and is also embedded within the content of commercial contracts (detailed in G1-1 Protection of
whistleblowers).
BCR Group ensures that employees are familiar with these channels through regular monitoring and through the mandatory
Compliance/Whistleblowing course. Related whistleblower channels standard promotion mechanisms are in place such as the
annual training for all employees and BCR’s website for third parties.
Whistleblowing management process is subject to internal audits (3rd line of defense). Last review was performed in 2023, and no
findings were identified. Annually, during the Supervisory Review and Evaluation Process (SREP) inspections conducted by the
National Bank of Romania (NBR) information is presented to the regulator (regulator controls). In line with an internal procedure
and the applicable regulatory framework, BCR is submitting a semestrial report to NBR related all situations investigated in the
reference period. Statistical information is also submitted annually to Erste Group. For the year 2025, no complaints met the
admissibility criteria for processing under the whistleblowing reporting channel. Most of the alerts received were redirected to the
standard business channels, as they referred to issues concerning the functionality or design of banking products, or to matters
related to internal activity and employees, which were handled through the anti‑discrimination process.
Anti-Discrimination channel
Complaints sent via the Anti-Discrimination channel are highlighted in a dedicated register (5 claims received in 2025 as compared
to 11 in 2024). The process related to Antidiscrimination and Anti-harassment is defined in BCR’s Internal Regulation and
generally addresses cases in which BCR Group employees submit different claims or complaints related to harassment and
discrimination (exclusively). This also includes provisions concerning the non-retaliation safeguards provided to employees.
The objectives of such guidelines and processes are to ensure a zero-tolerance policy for harassment and discrimination in the
workplace and to provide all employees with the necessary tools to fully exercise their rights. As regards the anti-discrimination
channel, it has been established internally (without participation in third-party mechanisms). All concerns and complaints
regarding the harassment and discrimination in the workplace are managed by an internal Committee comprised of three members
representing Compliance, Legal and People and Culture Divisions, all certified experts in equal opportunities. The Committee is
responsible for receiving, investigating and solving harassment and/or discrimination allegations. Each case is taken seriously and
treated with promptness and confidentiality. If the case is classified as a harassment incident, it may be subject to appropriate
disciplinary sanction according to the provisions of the Internal Regulation.
BCR informs employees about the availability of above channels to raise their concerns. One of the options used is to inform
newcomers right from the beginning of their employment as part of the onboarding welcome program. Other ways to raise
awareness is through dedicated online training including this type of information. In addition to this, the Employee Engagement
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Survey assesses employees' perception of their ability to express thoughts and ideas openly without fear of negative consequences,
highlighting BCR Group's commitment to fostering a psychologically safe environment for communication.
Customized training material related to antidiscrimination and anti-harassment is deployed regularly using also standard
communication related channels and process in place.
Employees may voice their concerns through worker's representatives either via dedicated meetings or individual reportings.
Reportings through workers' representatives are dealt with protective measures against retaliation, as foreseen by the law and the
collective bargaining agreement in force.
S1-4 – TAKING ACTION ON MATERIAL IMPACTS ON OWN WORKFORCE, AND
APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL
OPPORTUNITIES RELATED TO OWN WORKFORCE AND EFFECTIVENESS OF THOSE
ACTIONS
BCR Group has implemented various actions to address the material topics of gender pay equity, diversity, training and skills
development, work-life balance, to prevent and mitigate negative impacts and to create positive impacts for its own workforce. BCR
Group has established group policies that provide a framework for its approach to these material matters (listed in Chapter 'S1-1 -
Policies related to own workforce'). The local policies follow the local legal framework and are in line with the group policies
through a rollout implementation process.
Financial and other resources for actions related to BCR Group’s own employees are allocated mostly from the People & Culture
departments, but other teams provide support for specific actions as well. The actions are taken in the reporting year and are also
planned to continue annually and over the medium and long term to ensure sustained positive impact, mitigate potential future
negative impacts or risks and to pursue material opportunities. To support the implementation of the actions listed in the table
below, BCR Group allocates resources from several departments, and allocates dedicated budgets.
Table Key actions and policies associated with the material IROs

Sub-topic | List of key actions | Policy
S1-Collective bargaining | Maintain current coverage (100%) at bank level by committing to periodical negotiations with representative unions, according to national legislation. As regards the subsidiaries, periodical collective bargaining are taking place in those companies where representative unions were established (BCR Leasing IFN and BCR Banca pentru Locuinte SA). | Mandatory negotiations are provided by law, therefore there is no need for a company policy in place.
S1-Work-life balance | Flexibility of working time (part-time, flexible working hours) Hybrid work of remote and on site Private healthcare packages | A dedicated stand alone policy is not implemented, but the topic is covered either by local strategies under overarching Erste Group objectives, by the collective bargaining agreement or by BCR Internal Regulation.
S1 - Gender equality and equal pay for work of equal value | Reduce the adjusted gender pay gap, while also gradually addressing the unadjusted gap driven by structural factors | Remuneration Policy Diversity and Inclusion Policy
S1-Training and skills development | Talent management and leadership Performance reviews and development talks 360 0 Leadership feedback | BCR Nomination and Suitability Assessment Policy for Management Body Recruitment, Training and Human Resources Policy
S1-Diversity | Establish a new formal framework for deciding upon the diversity priorities and major initiatives (i.e. Sustainability, Diversity and Inclusion Committee). Implementing actions that support the objectives in the Diversity and Inclusion Policy, on topics like Gender Equality, Equal Treatment, Disability and Accessibility, Generational Diversity and Diversity indexing | Diversity and Inclusion Policy

COLLECTIVE BARGAINING
Maintaining almost 100% coverage of BCR’s own workforce under a collective bargaining agreement is a key action to continue to
create positive impact.
BCR Group commits to periodic negotiations with representative unions in compliance with national legislation to maintain full
coverage. For subsidiaries, the objective is to preserve 100% coverage where representative bodies exist:
— Two subsidiaries (BCR Banca pentru Locuinte SA and BCR Leasing IFN SA) already have collective agreements in place
— One subsidiary (BCR Payments Services SRL) is covered by the sector-wide banking agreement.
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WORK-LIFE BALANCE
BCR Group has adopted a number of measures to allow working times to be adjusted to personal requirements. BCR Group offers a
range of family-friendly measures which are regularly adapted to the needs of its employees. With family-friendly flextime (such as
flexible working schedule or additional time off) and work-from-home schemes, BCR Group enables its employees to balance
personal time and work.
We prioritize work-life balance through a comprehensive strategy that considers employee perspectives. Through a bottom-up
approach, we engaged colleagues from various levels of the organization in a collaborative exercise to shape our flexible work
benefits, ensuring that the diverse needs of our workforce are met. The effectiveness of these actions is determined based on
monitoring reports on the rate of use for such options and based on the employees’ feedback provided specifically or as part of the
Engagement Surveys.
To ensure high standards of occupational health and well-being, the BCR Group delivers a comprehensive suite of medical services
through a certified health providers. We continuously evaluate the effectiveness of these interventions by analyzing annual health
status reports, which serve as the foundation for targeted awareness campaigns focused on preventable illnesses. Furthermore, we
monitor anonymized data regarding the utilization of medical services by employees and their dependents to better align our
offerings with their needs. To promote equitable access to care, we provide on-site diagnostic screenings in locations with limited
clinical infrastructure, facilitating early detection and proactive health management for our employees.
GENDER EQUALITY AND EQUAL PAY FOR WORK OF EQUAL VALUE
BCR believes that pay equity is essential for a fair and equitable workplace. Starting in 2022, BCR has initiated a pay transparency
journey focused on delivering structured and customized communication regarding BCR's compensation philosophy and pay
practices across the organization. This effort aims to bring greater transparency on BCR's pay strategy, job grading system and
salary grids, ensuring that all employees understand the principles behind equal pay for work of equal value.
BCR holds a Fair Pay Analyst certification from the Fair Pay Innovation Lab, with its UNIVERSAL FAIR PAY CHECK® recognized
as a certification trademark by the European Union Intellectual Property Office. This certification integrates various European
legislative initiatives into a single procedure, accommodating both current and future regulations. The analysis, based on BCR’s
internal data, provides a solid foundation for implementing fair pay practices and underscores BCR's commitment to conducting
pay analyses correctly.
BCR's commitment to pay transparency started with the individual total rewards statement and individual pay positioning vs. the
salary grid and will continue with future forthcoming disclosures aiming to improve transparency and promote equity.
Building on remediation processes, BCR Group’s strategic actions aim to primarily reduce the adjusted gender pay gap, while also
gradually addressing the unadjusted gap driven by structural factors. This approach includes:
— Applying a consistent pay equity analysis methodology aligned with Erste Group standards and external certification practices;
— Conducting systematic pay equity reviews and implementing corrections of individual pay discrepancies as part of the annual
salary adjustment process;
— Promoting frameworks to address structural factors, such as gender distribution across roles by promoting fair and transparent
salary negotiations beyond collective agreements during the hiring process;
— Progressively ensuring pay transparency, beginning with total reward statements and evolving toward company-wide gender
pay gap disclosures.
For more details see chapter 'S1-16 - Remuneration metrics (pay gap and total remuneration)'.
BCR aims to be positioned positively compared to relevant Romanian financial sector peers, while continuing to reduce the
adjusted gap further and progressively address structural factors impacting the unadjusted gap over time.
The overarching objective is to achieve a sustainable reduction in pay disparities and reinforce trust through transparent reporting.
Through the actions described in this section coupled with the internal gender representation targets which we have in place we
are ensuring that the gender pay gap is consistently addressed and its negative impact reduced.
The time horizon for these actions is ongoing. Fostering pay transparency and pay equity remains a top priority for BCR Group and
we are committed to continuously refining and expanding our initiatives to ensure sustained progress.
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TRAINING AND SKILLS DEVELOPMENT
Talent management and leadership
Training and development represent a key opportunity for BCR Group to strengthen workforce capabilities and ensure long-term
organizational resilience. By investing in learning initiatives, the Group aims to equip employees with future-ready skills, foster
adaptability, and support career growth in alignment with strategic priorities.
BCR Group delivers centrally coordinated, organization-wide learning programs for all employee levels, complemented by
development opportunities. The talent development philosophy is aligned with the Group's strategic priorities to reinforce
attractiveness, long-term sustainability and competitiveness.
This approach is reflected in four key areas of action that structure our talent development efforts across the organization.
1. Continuous Learning and Future-Ready Capabilities for All Employees. BCR Group provides employees with access to a
wide range of learning programs designed to enhance technical expertise, regulatory compliance, and digital transformation
skills. Initiatives are implemented to build proficiency in data and AI literacy, financial knowledge, and customer-centric
approaches. Structured learning journeys, delivered through blended formats, encourage adaptability and promote a culture of
continuous growth. Reskilling and upskilling programs are prioritized to address evolving business needs and technological
advancements.
2. Management Body Development and Executive Managers. Development for the management body and executive
managers includes regular updates on regulatory requirements and participation in Group-wide learning initiatives. Tailored
programs are designed to strengthen leadership capabilities and ensure alignment with organizational objectives at senior
levels.
3. Leadership Development. A comprehensive leadership development framework supports current and future leadership
competencies. The approach emphasizes knowledge, skills, and behavioral attributes aligned with Group leadership
dimensions. Learning experiences are delivered through diverse formats such as workshops, coaching, and peer learning.
Leadership programs are integrated with succession planning to secure continuity and organizational resilience.
4. Talent Development. Targeted programs are implemented for high-potential employees to build a diverse and future-ready
pipeline of leadership and key talent. Career mobility and cross-functional exposure are encouraged to enhance organizational
adaptability. Personalized development plans and mentoring opportunities foster engagement and empowerment, supporting
long-term career growth.
All employees are involved in at least one of these development initiatives, being invited to participate, integrate the transferred
knowledge, and give feedback for program improvement at the end of each cycle. A specific communication plan is implemented
for each of these development initiatives, as described in section “S1-1 Policies related to own workforce”. There is a budget
allocated for each development initiative, and Learning & Development specialists and experts, as well as HR Business partners and
managers are all involved in the implementation process. Development initiative outcomes are assessed through post program
evaluations, impact surveys, and follow up reviews with participants and managers. Feedback is collected on an annual basis and
serves as input for designing improvement actions.
In 2025, BCR Group employees completed on average 47.26 hours of professional development (2024: 47.6 hours). Employees in
management positions completed an average of 70.49 hours of training (2024: 72.9 hours). BCR monitors average trainings hours
by collecting the information per year and comparing them to the previous year. The indicator is calculated as the number of
training hours in the reporting period divided by the total head count as of year-end. There is no targeted value as the number of
training hours may fluctuate throughout the years, as some regulatory training may be required.
Performance reviews and development talks
At BCR Group, talent management starts with constructive feedback, a fair and transparent assessment of individual potential. The
performance management process and the results it generates represent a continuous, annual, and highly valuable source of
information for learning and skills development activities. In each performance evaluation cycle, the data collected by managers
refer to development needs, professional growth directions, and competency gaps at both individual and organizational levels.
All employees should participate in the annual performance and development talk, initiated by the direct superior. Support is
offered by the dedicated teams in People and Culture, covering the subject matters of feedback, development and performance. This
process implies organizing open lines with all employees as well as dedicated sessions with managers on conducting a performance
and development talk with their teams. HR Business partners also offer support and have an overview of the process. Specific
communication plan is implemented for, using various channels like direct emails, newsletters, company intranet, notifications
from the performance management system in place.
The effectiveness of running the performance management process annually - especially in strengthening the skills of highly
qualified employees, enhancing engagement, and increasing productivity - cannot be fully captured through a single, specific
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indicator. However, the benefits become visible over time through improvements in processes, products, and overall organizational
performance, which indirectly support the company’s financial results.
In this way, the annual performance management cycle not only measures performance but also provides a solid basis for the
strategic planning of development initiatives, ensuring alignment between business objectives and the evolution of employees’
capabilities.
360° Leadership feedback
LEAD360 is Erste Group’s leadership feedback survey designed for evaluation of managers based on their daily behaviors at work,
while leading a team. 360 Feedback surveys not only form a well-rounded view of a manager‘s performance, but also increase self-
awareness, identify strengths and development areas, promote a culture of feedback and improve team dynamics. This is a
development tool which gives valuable insight on future career progression actions as well as performance management. The key
insights from the results of LEAD360, are used to assess leadership KPIs and are therefore used in the short-term horizon for yearly
performance evaluation of board, senior and mid-level management.
Managers receive feedback from all their direct reports. They are also evaluated by their own managers (including matrix managers
if applicable). To get a broader perspective and add valuable context to the overall evaluation, each manager can in addition
personally select colleagues who should provide feedback. Special Open line sessions as well as direct discussions help managers
understand and apply the process correctly and in the benefit of their own development.
All managers within Erste Group are in the scope of this process and, additional experts or functional leaders may be invited to
participate as evaluees. All employees are automatically invited to offer feedback as subordinates to their superiors within the
LEAD 360 process. Additionally, they may be invited to give feedback to peers they frequently work with and who participate in the
process as evaluees. Support is offered by the dedicated teams in People and Culture, covering the subjects of feedback and
development and implies offering technical support, guidance and follow-up on the completion rate. HR Business partners also
offer support and have an overview of the process. A specific communication plan is implemented using various channels like
direct emails, newsletters, company intranet, notifications from the feedback platform.
In 2025, 465 managers from BCR Group have been invited to participate in Lead 360 Feedback and the participation rate exceeded
95%.
At the end of the process, each manager receives an individual report to support his/her individual development plan. Additionally,
the aggregated results are used by the Learning and Development teams to create future development programs.
DIVERSITY
BCR established the Sustainability Diversity and Inclusion Committee (SDIC), as a framework for debating and approving the local
diversity strategy, as well as:
— deciding upon the diversity and inclusion priorities and major initiatives.
— supporting the adoption of the diversity targets set through the policy and the required measures to achieve the targets.
— promoting diversity as part of corporate culture and strategy.
SDIC is a formal committee, under the direct coordination of BCR Management Board and is comprised of all Board Members, the
Head of Sustainability and the Local Diversity Manager .
In 2025, we focused on pursuing the following Diversity & Inclusion areas:
— Gender Equality (representation of women on all levels): launching the Program Lead as you for the development of female
talents in BCR, scaling the MindfulParent Program (BRG) for all parents in BCR to over 450 members in 2025
— Equal Treatment (Anti-Discrimination and Harassment), as detailed below
— Generational Diversity: connecting generations through mentorship programs, employees becoming Career Teachers or
Money School Teachers, launching the Next45 Community (BRG), that reached over 150 members in 4 months
— Accessibility and professional inclusion of people with disabilities: 1. creating and filling the Accessibility Manager role,
first dedicated position in banking industry in Romania (In the context of EAA (European Accessibility Act) implementation,
his expertise helped BCR to understand many of the accessibility challenges our clients are facing when they are using banking
products and services, and remove digital barriers.); 2. launching BCR Accessibility Webpage; 3. organizing and participating in
events designed to raise awareness on disability and accessibility topics; 4. partnering with disability organizations to recruit
persons with disabilities. By working towards facilitating a smooth integration, BCR Group is committed to become an inclusive
organization that stands for accessibility and empowerment for people with disabilities.
Actions taken by BCR in coordination with Erste Group to address diversity include training programs, like Fostering respectful
interactions at work and Preventing sexual harassment, in order to promote an inclusive and respectful working culture.
Additionally, diversity indexing is an action to establish a group-wide monitoring methodology. These initiatives aim to promote an
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inclusive corporate culture that strengthens both the internal and external perception of BCR Group as an attractive workplace
which also supports the achievement of the objectives in the Diversity and Inclusion Policy.
The effectiveness of the initiatives related to fostering diverse and inclusive work environment are tracked considering the gender
and age balance in BCR Group’s workforce (see 'S1-9 - Diversity metrics') and number of complaints and discrimination incidents
(see 'S1-17 Incidents, complaints and severe human rights impacts').
Resources for actions related to diversity matters are allocated in People and culture team. Budget for diversity trainings addressing
all Erste Group Employees is coordinated and allocated by Group Diversity Management team on yearly basis.
S1-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS,
ADVANCING POSITIVE IMPACTS AND MANAGING MATERIAL RISKS AND
OPPORTUNITIES
BCR Group currently does not set measurable targets for all material topics identified and acknowledges the need to further
develop this practice in line with ESRS requirements in the future reporting cycles.
However, the organization is pursuing continuous improvements in the following areas:
— Pay equity: progressively address the unadjusted pay gap and maintaining it below industry peer level, actively reducing the
adjusted pay gap.
— Diversity: promoting greater representation of the underrepresented gender within the management body, senior management,
and succession lists whilst ensuring that the minimum targets foreseen by the regulatory provisions in force are observed.
— Training and skills development: monitoring training hours at employee level with the aim of encouraging and supporting a
consistent upward trend.
S1-6 – CHARACTERISTICS OF THE UNDERTAKING’S EMPLOYEES
At 31 December 2025, BCR Group had 5,117 own employees (2024: 5,220 ). Employees actively undertake business activities based
on their job role for which they are compensated for in line with the BCR Group Remuneration Policy. The reporting includes all
active employees (headcount).
Data is reported in headcounts (one person = one headcount, irrespective of the number of hours worked). The headcount measure
is the relevant metric for labor law and better representation of material topics such as training, diversity etc., compared to full-time
equivalent measures. It provides a full picture of the organization’s diversity and inclusion efforts. Figures related to own
employees refer to the end of the reporting period (31 December 2025 and 31 December 2024 respectively).
The table 'Employee headcount broken down by gender' shows data for BCR Group, namely the bank and the five subsidiaries.
All BCR Group entities operate in Romania, therefore, reporting the own workforce headcount by country is not relevant.
Employee headcount broken down by gender

Gender | 2024 | 2025
Male | 1,359 | 1,356
Female | 3,861 | 3,761
Other | 0 | 0
Not reported | 0 | 0
Total employees | 5,220 | 5,117

Trainees are not included in the headcount or full-time equivalent figures used for the calculation of metrics disclosed under this
chapter.
Table 'Employee headcount by contract type, broken down by gender' indicates that the majority of BCR Group’s workforce
holds a permanent contract. A permanent (unlimited) contract of employment is a contract of unlimited duration and includes all
new employees currently on a probationary period who are likely to have their contract made permanent. Temporary employees
have limited contracts and include among others Trainees, Contact Center positions and Management Board contracts. Most of the
active headcount are full-time employees, defined as those with 100% occupancy (FTE= 1). BCR Group does not have hourly paid
employees.
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'Own workforce headcount by contract type, broken down by gender' table shows data for BCR Group, namely the bank and
the five subsidiaries.
Employee headcount by contract type, broken down by gender

2025 (headcount) | Female | Male | Other | Not reported | Total
Total number of employees (headcount) | 3,761 | 1,356 | 0 | 0 | 5,117
Number of permanent employees (headcount) | 3,588 | 1,300 | 0 | 0 | 4,888
Number of temporary employees (headcount) | 173 | 56 | 0 | 0 | 229
Number of full-time employees (headcount) | 3,642 | 1,314 | 0 | 0 | 4,956
Number of part-time employees (headcount) | 119 | 42 | 0 | 0 | 161
Number of non-guaranteed hours employees (headcount) | 0 | 0 | 0 | 0 | 0

2024 (headcount) | Female | Male | Other | Not reported | Total
Total number of employees (headcount) | 3,861 | 1,359 | 0 | 0 | 5,220
Number of permanent employees (headcount) | 3,658 | 1,312 | 0 | 0 | 4,970
Number of temporary employees (headcount) | 203 | 47 | 0 | 0 | 250
Number of full-time employees (headcount) | 3,735 | 1,326 | 0 | 0 | 5,061
Number of part-time employees (headcount) | 126 | 33 | 0 | 0 | 159
Number of non-guaranteed hours employees (headcount) | 0 | 0 | 0 | 0 | 0

The table 'Employee turnover (including retirements)' shows data for BCR Group, namely the bank and the five subsidiaries.
Employee turnover (including retirements)

| 2024 | 2025
New hires | 386 | 454
Female | 281 | 319
Male | 105 | 135
Other | n.a. | n.a.
Gender not reported | 0 | 0
Leavers | 615 | 533
Female | 462 | 398
Male | 153 | 135
Other | n.a. | n.a.
Gender not reported | 0 | 0
Turnover ratio (%) | 11.60% | 10.29%

*Turnover ratio includes employees who leave voluntarily or due to dismissal, retirement, or death in service.
In 2025, employee turnover at BCR Group (total of men and women) was 10.29% (2024: 11.60%).
The turnover ratio presents the number of employees who left voluntarily, due to dismissal, retirement, or death in service during
the fiscal year. It does not include employees on parental leave, students completing internship and internal transfers within the
group. The employee turnover rate (%) is calculated using the formula: the number of employees who left the company during the
reporting period (12 months) divided by the average headcount (HC) at the reporting date since the beginning of the year.
Information about average FTEs can be found in Note 6 (General administrative expenses) in the BCR Group Consolidated and
Separate Financial Statements 2025. Using Full-time Equivalent for financial statements, especially in tracking administrative
expenses, is generally more effective than headcount as it better represents the cost of labor.
S1-7 – CHARACTERISTICS OF NON-EMPLOYEES IN THE UNDERTAKING’S OWN
WORKFORCE
In addition to own employees, there are 669 non-employee workers in BCR Group - headcount as of 31 December 2025 (584 non-
employee workers in BCR Group - headcount as of 31.12.2024), which are either self-employed individuals - 5 (2024: 5) or
individuals contracted through a third party engaged in employment activity - 664 (2024: 579). Non-employees are contracted for a
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specific period of time based on their contract conditions and are mostly active in IT and Risk areas. Similar to BCR Group’s
operations, where employees’ contracts prevail over non-employees' contracts, non-employees represent only 12% (2024: 10%) of
the total own-workforce headcount. For non-employees, there are currently no policies, actions or targets in place. Thus, all
policies, are specifically addressed to BCR Group’s own employees. Additionally, actions, targets, metrics, and engagement and
grievance mechanisms are designed to support and benefit own employees.
S1-8 – COLLECTIVE BARGAINING COVERAGE AND SOCIAL DIALOGUE
Overall, a percentage of 99.90% (2024: 99.92%) of BCR employees are covered by a collective bargaining agreement. As for BCR
Group subsidiaries, only employees of two BCR subsidiaries (BCR Banca pentru locuinte and BCR Leasing) are covered by the
organization’s collective bargaining agreement, while BCR Payments Services SRL employees are covered by the banking sector
collective bargaining agreement.
Under Romanian legislation, BCR Group does not have the obligation to organize European Workers' Councils since it does not
have subsidiaries in other EU countries. However, both BCR Trade Unions participate in the European Workers Council organized
by Erste Group (each of the two Trade Unions has 2 members).
The Board Members of BCR and BCR subsidiaries (operating under mandate and not under a labour contract) are not covered by
the collective bargaining agreement.

2025 Collective bargaining Coverage (either by company or by sectoral agreement) | Social dialogue
Entity | Coverage rate | Workplace representation
BCR Bank | 99.90% | Yes, 2 trade unions
BCR Banca pentru Locuinte SA | 91.67% | Yes, 1 trade union
BCR Leasing IFN SA | 98.11% | Yes, 1 trade union
BCR Payments Services SRL | 98.48% | No
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA, Suport Colect SRL | 0.00% | No

2024 Collective bargaining Coverage (either by company or by sectoral agreement) | Social dialogue
Entity | Coverage rate | Workplace representation
BCR Bank | 99.92% | Yes, 2 trade unions
BCR Banca pentru Locuinte SA | 92.59% | Yes, 1 trade union
BCR Leasing IFN SA | 97.99% | Yes, 1 trade union
BCR Payments Services SRL | 98.53% | No
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA, BCR Fleet Management SRL, Suport Colect SRL | 0.00% | No

S1-9 – DIVERSITY METRICS
Employee gender distribution at top management

| Top management* (headcount) | Top management* (share)
| 2024 | 2025 | 2024 | 2025
Female | 15 | 14 | 38.5% | 35.9%
Male | 24 | 25 | 61.5% | 64.1%
Other | 0 | 0 | 0.0% | 0.0%
Not reported | 0 | 0 | 0.0% | 0.0%
Total employees | 39 | 39 | 100.0% | 100.0%

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*Management board positions (B0), as well as positions reporting directly to the management board (B-1), are defined as top
management positions on the single entity level. From the consolidated group perspective (Table Employee gender distribution
at top management) Top Management is defined as BCR Bank Top Management (B0 and B-1) and Top Management of the BCR
Group subsidiaries. The distribution by gender is presented as both number and percentage for these positions.
Employee age distribution by age groups

| 2024 | 2025
| Number of employees (headcount) | Share of employees (headcount) | Number of employees (headcount) | Share of employees (headcount)
under 30 years old | 783 | 15.0% | 702 | 13.7%
between 30-50 years old | 3,161 | 60.6% | 3,090 | 60.4%
over 50 years old | 1,276 | 24.4% | 1,325 | 25.9%
Total employees | 5,220 | 100.0% | 5,117 | 100.0%

Employee age distribution by age groups is reported on headcount bases as of year-end.
The table Employee age distribution shows data for BCR Group, namely the bank and the five subsidiaries. The distribution is
broken down into the following age categories: under 30 years, 30–50 years, and over 50 years, as required by ESRS 'S1-9 - Diversity
metrics'.
S1-12 – PERSONS WITH DISABILITIES
In the Double Materiality Assessment process a specific IRO related to persons with disabilities was not identified. However, BCR
Group considers this topic to be linked to diversity and has therefore disclosed this metric. The number of employees with
disabilities as of 31 December 2025 is collected using the definition based on the Romanian legislation on the rights of persons with
disabilities. It defines persons with disabilities as those who due to physical, mental, or sensory impairments, lack the abilities to
normally carry out daily activities, requiring protection measures to support recovery, integration, and social inclusion.
As of 31 December 2025, BCR Group had 47 employees with a recognized health disability, all of whom are employed by the bank.
This corresponds to 0.92% of the total BCR Group headcount (2024: 43 employees, 0.82%).
S1-13 – TRAINING AND SKILLS DEVELOPMENT METRICS
The material matter of training and skills development is tracked by the average training hours metric and the proportion of
performance reviews to the foreseen number of performance reviews concluded by management.
Training and skills development metrics

| 2024 | 2025
Average training hours | 47.6 | 47.3
Female | 47.8 | 48.2
Male | 47.2 | 44.7
Other | 0.0 | 0.0
Gender not reported | 0.0 | 0.0
Management functions | 72.9 | 70.5
Non management functions | 45.0 | 44.9

The table Training and skills development metrics shows data for BCR Group, namely the bank and the following subsidiaries:
BCR Leasing IFN, BCR Pensii, Societate de administrare a fondurilor de Pensii Private, BCR Banca pentru Locuinte.
In 2025, BCR Group’s employees completed on average 47.3 (2024: 47.6) hours of professional development, thereof women 48.2
(2024: 47.8) hours and men 44.7 (2024: 47.2) hours. Employees in management positions completed an average of 70.5 (2024: 72.9)
hours of training. BCR Group monitors average training hours by collecting the information per year for each entity and comparing
them to the previous year. The indicator is calculated as the number of training hours completed in the reporting period by its
employees active as of 31 December divided by the total headcount as of 31 December. There is no targeted value at group level, as
for each entity the optimal number of training hours might be different. Moreover, the number of training hours may fluctuate
throughout the years, as some regulatory trainings may be required.
Next to talent management and leadership, performance reviews are one of BCR Group’s actions to address the material matter of
Training and skills development identified in the Double Materiality Assessment.
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In 2025, performance reviews were concluded for 91.60% (2024: 82.55%) of all employees of BCR Group. These performance
reviews are based on the 2024 performance (considering that the performance reviews for 2025 performance will be available later
in 2026). The figure has been derived through group consolidation of number of performance reviews per active head count (as of
December 31) during the reporting period divided by the number of total head count (as of December 31).
As per the provisions of the performance management process, all employees with more than 3 months worked during the
reporting year, should have a final performance evaluation concluded for the reporting period. All performance reviews are
concluded by each respective manager.
Performance reviews

| 2024 | 2025
Percentage of employees that participated in regular performance and career development reviews | 82.55% | 91.60%
Female | 80.99% | 92.13%
Male | 86.98% | 90.12%
Other | 0.00% | 0.00%
Gender not reported | 0.00% | 0.00%
Management functions | 93.35% | 97.66%
Non management functions | 81.45% | 90.96%

The table Performance reviews shows data for BCR Group, namely the bank and the five subsidiaries.
S1-15 – WORK-LIFE BALANCE METRICS
All of BCR Group’s own employees are entitled to take family-related leaves (based on head count), which include maternity leave,
paternity leave, parental leave, and leave for family caregivers, etc., as granted under national law or collective bargaining
agreements. A percentage of 18.91% (2024: 18.2%) of employees took family-related leaves during the reporting period, female
employees 21.16% (2024: 20,59%), male employees 12.31% (2024: 11.1%). The percentage was calculated by dividing the number of
employees who took family-related leave during the reporting period by the sum of active employees and employees on parental
leave as of 31 December 2025.
Also, all BCR Group employees benefit of a hybrid working model in accordance with their area of activity. During the reporting
period more than 52% (2024: 55%) of BCR Group employees used teleworking days.
S1-16 – REMUNERATION METRICS (PAY GAP AND TOTAL REMUNERATION)
BCR is committed to ensuring fair and transparent remuneration practices. Our approach focuses on understanding the drivers of
the gender pay gap and distinguishing between differences that can be explained by objective factors such as job structure,
experience, and performance. The organization has established a robust methodology to analyze and monitor pay equity, aligning
with transparent communication and coordinated efforts to mitigate any potential negative impacts on the workforce.
Gender Pay Gap Analysis
BCR conducts an annual detailed analysis to identify the current gender pay gap and understand the factors influencing it. Both
unadjusted and adjusted pay gaps are monitored:
— Unadjusted Gender Pay Gap: Represents the percentage difference between the average gross hourly pay for women and men
across all job levels, without considering any influencing factors.
— Adjusted Gender Pay Gap: Reflects the percentage difference after accounting for various influencing factors that typically
impact pay. This calculation uses regression analysis, a robust statistical method that determines how different variables affect
individual compensation.
— Remuneration ratio: represents the annual total remuneration of the highest-paid individual of BCR Group (CEO) divided by
the median annual total remuneration of all employees except for the highest-paid person.
Calculation Method
At BCR Group, the gender pay gap is calculated on an annualized, full-time equivalent basis, comparing the average pay of all men
and women across the organization and job levels. Pay gaps are computed for base pay and total compensation separately. Total
compensation includes base pay and variable remuneration, which is performance-driven.
Variable remuneration is based on the overall performance of the entity and individual performance of each employee. Therefore,
the performance evaluation for 2025 will be granted in May 2026.
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For the 2025 pay gap and remuneration ratio, an estimate of variable remuneration based on 2024 performance (granted in 2025)
was necessary to cover the total compensation.
Within the Bank, t he 2025 analysis on total compensation (base pay 2025 + variable remuneration based on 2024 performance + all
benefits in kind and other amounts paid in 2025) revealed the following:
— Unadjusted gender pay gap: 29.0% (2024: 31.3%), primarily influenced by the current distribution of male and female employees
across roles within the organization.
— The remuneration ratio for 2025 is of 43.4 for BCR (2024: 48.4).
BCR unadjusted gender pay gap for base pay is 29.5% (2024: 32.0%).
In addition, BCR monitors the adjusted gender pay gap.
The results confirm that most pay differences are explained by objective factors such as job grading, business area, managerial
responsibility, and individual performance.
BCR remains committed to actively reducing gaps through targeted measures, including promoting gender balance across job levels
and ensuring equitable career development opportunities.
At BCR Group level, the unadjusted gender pay gap for base pay is 29.5% (2024: 31.7%), while the unadjusted gender pay gap on
total compensation is 29.2% (2024: 31.3%), driven by the current workforce demographics and the distribution of male and female
employees across roles and entities within the Group.
The Remuneration ratio at BCR Group level for 2025 is of 44 (2024: 48.7).
S1-17 – INCIDENTS, COMPLAINTS AND SEVERE HUMAN RIGHTS IMPACTS
BCR Group has reported on its approach to complaints, channels to raise them and on remediation of negative impacts in Chapters
'S1-2 - Processes for engaging with own workforce and workers' representatives about impacts' and 'S1-3 - Processes to remediate
negative impacts and channels for own workforce to raise concerns'. Channels for raising concerns have been set-up, and the
number of complaints submitted to the organization's reporting tool has been recorded.
BCR recorded 7 discrimination and harassment cases in 2025, out of which 5 were addressed internally, without involvement of
local authorities and 2 represented litigations.
In 2025, BCR has received a total of 1 4 complaints (2024: 28) from its workforce regarding various topics, relating to discrimination
and harassment allegations (7 cases in 2025 vs. 11 cases in 2024 ) and inappropriate behavior, termination of employment and
entitlements, performance appraisal results and workplace management (7 cases in 2025 vs. 17 cases in 2024). There have been no
fines, penalties, or compensation for damages resulting from incidents of discrimination and complaints or relating to severe
human rights issues or incidents connected to BCR's own workforce. Data was compiled from internal HR and compliance systems
and reconciled with financial reporting to confirm that no monetary sanction s were applied.
At the level of the BCR subsidiaries, only one incident related to harassment and discrimination was reported in 2025 (2024: 0). The
incident was resolved through an informal approach. The other subsidiaries within the BCR Group did not report any incidents or
complaints.
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12.3.2 Affected Communities
This chapter focuses on BCR Group’s impact on communities - defined as people whose life is influenced by the Group’s activities.
It focuses on a BCR Group specific sustainability topic - Financial literacy, highlighting our positive contributions such as providing
to wider groups of stakeholders access to instruments and guidance enabling them to make informed and lasting financial
decisions.
S3 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL
As part of BCR Group's commitment to transparency and sustainability, this chapter provides an overview of the impacts, risks, and
opportunities (IROs) related to affected communities. As a prominent business in the local market, it is crucial for BCR Group to
consider the interests and needs of the wider society and contribute to developing stronger and prosperous communities for the
long run.
With regard to affected communities, BCR Group has identified a positive impact stemming from its financial literacy initiatives:

Sustainability Matter | Type of IRO | IRO Description | Value chain | Time horizon
S3 - Financial literacy (entity specific) | Positive impact* | Through national programs such as ‘Școala de Bani’ and ‘Flip’, BCR Group provides equitable access to financial education for every segment of society – including underserved and rural communities. By bridging these gaps, we are driving measurable progress in financial literacy, autonomy, and long-term financial well-being for every workshop participant. | Own operations | All time horizons

*In line with the methodology applied for the DMA, if not otherwise indicated, the short-term impact is actual, whilst for medium and long time horizons the impact is potential.
S3-1 - POLICIES RELATED TO FINANCIAL LITERACY
FINANCIAL LITERACY (POSITIVE IMPACT)
Financial literacy is a fundamental pillar of the business strategy (please see section '4.2 BCR Group's strategy and business model'
in the Administrator's report), which seeks to equip participants from diverse stakeholder groups with essential knowledge and
abilities for managing their personal fin ances. Through its 'Scoala de Bani' (Money School) initiative, BCR Group demonstrates its
commitment to enhancing financial literacy. B y focusing on crucial topics like budgeting, saving, and investing, the initiative
ensures that individuals are well-prepared to make informed financial choices for their future.
By using digital tools such as a dedicated platform and expert guidance, BCR Group aims to ensure that financial education is
accessible and engaging for people of all ages and backgrounds. Also, BCR Group contributes to the empowerment of teachers to
integrate financial literacy content in their lessons. This is part of the Life Lab sub-program under Money School and aims to bring
financial literacy in each topic of school curricula.
Through personalized approaches and interactive learning experiences under this program, BCR Group supports the development
of a more financially stable and educated society. Furthermore, through the implementation of this framework BCR Group
supports the UN Sustainable Development Goal 4: quality education.
Money School framework is aimed to support the strategic objectives of BCR on medium and long term. The Marketing and
Communication Division of BCR is responsible for the implementation and monitoring of this financial education program, which
was developed considering market research data and insights from internal stakeholders during the strategy development process.
S3-2 - PROCESSES FOR ENGAGING WITH AFFECTED COMMUNITIES ABOUT
IMPACTS
Engagement with Affected Communities: Financial Literacy Initiatives
BCR employs a multi-channel engagement process to manage the impacts of its financial education services on local communities,
students, and educators. This process is designed to ensure that the Money School and LifeLab initiatives are responsive to the
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actual needs of affected stakeholders. A dedicated team for Financial literacy projects is established within the Communications
Department. Also, financial literacy teachers in many departments of BCR Group support this initiative by delivering dedicated
workshops. Ultimately, the Management Board is entrusted with the responsibility for engaging with affected communities
concerning financial literacy.
Direct Engagement Channels:
BCR conducts ongoing direct dialogue through financial literacy sessions and mobile units across schools, companies, and local
communities. To ensure inclusive participation, engagement is facilitated through formal partnerships with the Ministry of
Education and Regional School Inspectorates (e.g., Bucharest, Ilfov, Iași, Brașov, Cluj).
Methodology for Meaningful Engagement:
Engagement is supported by evidence-based research to identify systemic gaps. This includes:
— Qualitative & Quantitative Studies: Conducted annually with Cult Market Research, utilizing focus groups with students,
parents, and teachers to capture lived experiences.
— Strategic Research: Collaboration with the Institute for Research on Quality of Life (ICCV) to establish a strategic framework
based on national socio-economic data (identifying a 30% financial illiteracy rate).
— Feedback Loops and Integration: Stakeholder perspectives are systematically gathered via post-event surveys and quarterly
reviews. These insights directly inform the bank's strategic objectives.
Outcome of Engagement:
Based on stakeholder feedback and research identifying the need for interdisciplinary scaling, BCR expanded the LifeLab program.
As of 2025, this engagement-led strategy r esulted in the training of 14,000 teachers and the inclusion of 21,000 students across 12
pilot schools, ensuring the program's evolution aligns with the educational needs of the Romanian community.
S3-3 - PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR
AFFECTED COMMUNITIES TO RAISE CONCERNS
No negative impacts have been identified, and no complaints have been received regarding the financial literacy programs. BCR
provides multiple channels for stakeholders to raise concerns or submit complaints related to financial education initiatives,
including dedicated email addresses (scoaladebani@bcr.ro), contact forms on the Money School platform and LifeLab platform,
and direct communication during community sessions. All feedback collected through these channels - along with post-event
surveys and insights from direct feedback discussions - is systematically analyzed and integrated into program design and delivery
to ensure continuous improvement and responsiveness to community needs.
One example of feedback integrated into program design and delivery is the introduction of interactive budgeting simulations
within the Money School workshops. This change was implemented after participants consistently indicated in post-event surveys
that they wanted more practical, hands-on exercises to apply financial concepts. As a result, the program incorporated real-life
budgeting scenarios and digital tools to enhance engagement and learning outcomes.
Also, all new courses created for the Money School platform were proposed during the focus groups we did with the participants to
our training course who were asked to propose new topics of interest for them.
Further details on the processes that BCR Group has in place for raising concerns, as well as on the policies in place regarding the
protection of individuals against retaliation are available in section 'G1-1 Business conduct policies and corporate culture'.
S3-4 - TAKING ACTION ON MATERIAL IMPACTS ON AFFECTED COMMUNITIES, AND
APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL
OPPORTUNITIES RELATED TO AFFECTED COMMUNITIES AND EFFECTIVENESS OF
THOSE ACTIONS
BCR Group’s various initiatives share a common goal of promoting financial and social inclusion. These actions are designed to
address the diverse needs of different demographic groups. Continuous monitoring, regular assessments, and stakeholder
engagement are integral to ensuring the effectiveness and adaptability of these programs. By focusing on education and financial
stability BCR aims to create a positive and lasting impact in its communities.
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All the following actions are performed on an ongoing basis. For the implementation of the actions listed in the table below BCR
Group allocates budgets and resources from various departments such as Marketing and Communication, People and Culture,
Retail, Social Banking.
As concerns the implementation of these actions, no significant CapEx or OpEx was identified as needed for both this year and for
medium term.

Subtopic | List of key-actions | Policy
S3-Financial literacy | Financial Literacy Scoala de Bani & Financial literacy | Local Strategy under overarching Erste Group objective
S3-Financial literacy | Financial Literacy FLiP | Local Strategy under overarching Erste Group objective

Scoala de Bani and financial literacy
Money School by BCR is an extensive financial education program launched almost 10 years ago and aimed at empowering
Romanians with the knowledge and skills needed to make informed financial decisions, ensuring they can effectively manage their
personal finances and plan for long-term financial stability. The long-term initiative, which addresses kids from kindergarten,
school, high-school, universities and adults from companies, public institutions, NGOs, already reached, since its implementation,
through workshops, webinars, events, online platform, more than 900,000 Romanians across the country. The face-to-face
workshops are delivered by 2,000 BCR employees who became volunteers in the School of Money program. Its core objectives are
to reduce financial illiteracy, promote responsible financial behavior, and foster a deeper understanding of essential concepts such
as savings, budgeting, and investment. The results have been positive, with participants reporting increased confidence in their
ability to manage finances and a significant improvement in their financial knowledge measured through evaluation
questionnaires applied at the end of the workshops. Through this initiative, BCR aims to create a financially literate society that can
contribute to the overall economic development of the country.
More than 250,000 of the participants in our Money School program were kids and youngsters. The Ministry of Education endorsed
this program of BCR for the last 9 years, and now it considers introducing financial literacy notions in school teaching curricula.
BCR contributes to these efforts of improving financial literacy nationwide through its Life Lab subprogram.
LifeLab by BCR is a national program that integrates financial education into all school subjects, from kindergarten to high school,
using interdisciplinary resources and practical exercises. LifeLab started as a pilot program in 2022, tested in more than 12 schools
across Romania, proving that financial education can be naturally integrated into any subject. In 2025, the program was scaled
nationally through the LifeLab.ro platform, becoming a dedicated digital space for teachers and an essential tool for shaping a more
financially informed generation. Through the LifeLab.ro platform, teachers receive free access to over 500 educational materials
designed to embed financial literacy into existing curricula, helping students develop essential money management skills for real-
life situations.
FLiP
In Romania, Money School on Wheels – FLIP truck was launched in 2016 and it is an itinerant financial education exhibition for
kids aged 7-14. Its purpose is to teach kids how to manage their money correctly and why it is important to have a financially
responsible behavior. For an hour and a half, kids enter in the “Money World” where they have to pass through 5 steps together
with their allies and friends: Games, Interaction and Joy. In 2025 around 13,628 kids have participated to 600 online and offline
workshops. The Marketing and Communication Division of BCR is responsible for the implementation and monitoring of FLIP
programme, with one colleague from CSR team allocated for this project.
S3-5 - TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS,
ADVANCING POSITIVE IMPACTS AND MANAGING MATERIAL RISKS AND
OPPORTUNITIES
Performance indicators
BCR has developed annual performance indicators to monitor progress against its financial education objectives. These indicators
track both the reach and effectiveness of the financial education programs. The main indicator focuses on the number of
individuals participating in financial literacy activities organized or initiated by BCR each year, while additional indicators capture
the quality and impact of these initiatives, such as participant feedback and knowledge improvement scores. Data is collected
continuously through post-workshop surveys, and a qualitative impact study is under development for 2025 related information.
The table below includes data related to Flip - 18,722 participants in 2025 (2024: 0), Money School BCR - 101,134 participants in
2025 (2024: 80,226), Lifelab - 7,975 participants in 2025 (2024:0), Destiny - 108,956 participants in 2025 (2024:0):
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Financial Literacy Yearly Performance Indicators
|  | Baseline* | Actual
| Metric | Year | Value | 2025 | 2024
Number of education support participants (financial literacy) | Number of participants | n/a | n/a | 236,787 | 80,226

*no baseline defined
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12.3.3 Consumers and end-users
The scope of this chapter is to provide an overview on the approach towards managing the IROs that BCR Group has identified as
relevant for consumers and end-users, in particular the retail customer base. As part of its commitment to transparency and
sustainability, BCR Group places the interests and needs of its customers at the core of its business activities.
Under ESRS S4, BCR Group has identified material positive impacts regarding the financial health and inclusion of its consumer
base. These are primarily driven by social banking services and mobile banking units, which facilitate access for underserved
communities.
From a financial materiality perspective, BCR Group recognizes a material opportunity to enhance its business model resilience by
improving the long-term financial health of its customers. Conversely, a material risk related to data privacy has been identified.
The Group's approach to managing these impacts, risks, and opportunities (IROs), including specific mitigation actions for the
privacy topic, is detailed in the following sections.
S4 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND BUSINESS MODEL
The table below provides an overview of the identified IROs related to consumers and end-users. As a prominent business in the
local market, it is crucial for BCR Group to prioritize the interests and needs of its customers while effectively managing potential
risks.

Sustainability Matter | Type of IRO | IRO Description | Value chain | Time horizon
S4-Financial Health (entity specific) | Potential Positive impact | Through personalized financial health tools such as the Financial Coach in George and CRM-driven advisory services, BCR Group supports clients in improving their financial resilience, budgeting, and long-term planning. | Downstream | Medium to Long-term
Opportunity | By promoting customer financial health, BCR Group strengthens satisfaction, loyalty, and its own market performance. | Downstream | Medium-term
S4-Privacy | Risk | Cyberattacks and data breaches can erode customer trust, damage BCR Group’s reputation, and trigger legal penalties under regulations such as the GDPR. | Own operations | Short to Medium -term
S4-Access to products and services | Positive impact* | By ensuring that all banking products and services are accessible to socially vulnerable people (e.g. people with disabilities and the elderly), BCR promotes their autonomy, social and professional integration and active participation in community life. | Downstream | All time horizons

*In line with the methodology applied for the Double Materiality Assessment ("DMA"), if not otherwise indicated, the short-term impact is actual, whilst for medium and long time horizons the impact is potential.
FINANCIAL HEALTH (ENTITY - SPECIFIC)
Positive Impact
Financial health serves as key pillar of BCR strategy, positively impacting its retail customer base and other stakeholder groups
through offering financial advise programs that enhance their economic stability and quality of life. These ongoing financial health
program s develop a combination of financial awareness as well as the knowledge, skills, attitudes, and behaviors necessary to make
sound financial decisions and ultimately achieve individual financial well-being. This is especially valuable for those clients who
are unable to effectively manage their budgets and dealing with unexpected financial pressures which can further affect their
ability to meet debt repayments. The outcomes of actions to improve the financial health of customers continuously inform BCR
Group's strategy and business model. Further information regarding actions and outcomes can be seen under 'S4-4 - Taking action
on material impacts'.
Opportunity
BCR Group believes that by actively supporting the financial health of its retail customer base it can enhance their satisfaction and
loyalty, which in turn reinforces its financial performance and market position. With a growing and extensive customer base, BCR
Group has a strong foundation for financial health advisory services, as well as tools. This also presents an opportunity to deepen
client relationships, especially with those who are digitally active. Technological advancements are driving a shift in its approach to
financial health advice. Digital channels allow BCR Group to increase advisory touchpoints and reach more customers.
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PRIVACY
Handling customer data is a crucial part of BCR Group’s business model. As such, the organization is dedicated to protecting this
data and must be vigilant about potential data breaches or cyberattacks. Such incidents could compromise the security and privacy
of customers by exposing their private and financial data. Data breaches and cyberattacks can potentially affect all customers whose
personal data is processed by the bank. The outcomes of actions to address data breaches and cyberattacks (which can result in
theft, fraud and financial loss) continuously influence improvements to BCR's strategy and business model to effectively mitigate
risks in a timely manner. Further information regarding actions and outcomes can be seen under "S4-4 - Taking action on material
impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to
consumers and end-users and effectiveness of those actions".
ACCESS TO PRODUCTS AND SERVICES (SOCIAL BANKING & MOBILE BANKING UNITS)
Based o n its business model, BCR Group provides financial services to socially vulnerable people (e.g elderly, people in rural and/or
from low income geographical areas, difficult health conditions or with disabilities), including those who would otherwise be
excluded from access to financial goods and services. Initiatives focused on access to banking services, transparency and inclusivity
of these customers are key to BCR Group's value proposition and help build long-term customer relationships while improving
their financial autonomy. Strategically, these efforts mitigate social risks while enhancing customer trust and loyalty, which are
identified as key drivers for the Group’s stability and sustainable growth.
S4-1 – POLICIES RELATED TO CONSUMERS AND END-USERS
HUMAN RIGHTS COMMITMENTS
BCR Group commits itself to meeting its responsibilities on human rights and corruption prevention. The BCR Group strategy is
based on principles which are in line with the Universal Declaration of Human Rights, the ILO Declaration on Fundamental
Principles and Rights at Work, and the United Nations Convention Against Corruption, among others.
The Code of Ethics serves as a basis of our customer oriented commitment (further details are provided in the section 'Human
Rights commitments', in chapter 'S1-1 Policies related to own workforce'). Also, BCR Group dutifully considers and responds to the
feedback and inquiries from its customers on a range of topics.
BCR Group’s Code of Ethics, is based on principles which are aligned with international instruments that respect the human rights
of its customer base such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational
Enterprises. The principles set forth by these international instruments are also incorporated into BCR Group’s policies ensuring
that operations involving BCR Group’s customer based are considering the highest standards of ethical behaviour and respect for
human rights.
Furthermore, any non-respect of human rights by BCR Group towards its customer base can be reported by any stakeholder
through the whistleblower channels, and standard claim channels, where it is addressed promptly. Such assessment is performed
from a client perspective, for example by identifying entanglements and focusing on improving operations considering the data and
clients' feedback received through these channels. These mechanisms, supported by the Whistleblowing Policy and customer's
complaints management processes, allow BCR Group to maintain transparency and accountability, ensuring that any violations are
identified and rectified in a timely manner. In 2025, similarly to last year, BCR Group had no case of non-compliance related to
breaches of Human Rights.
For more information on the whistleblowing platform, please see ‘G1-1 – Business conduct policies and corporate culture’.
FINANCIAL HEALTH (ENTITY SPECIFIC)
In line with the pillar from its business strategy (please refer to section '4.2 BCR Group's strategy and business model' in the
Administrator's report), BCR guides its customers through important financial decisions, enabling choices that allow them to
improve their financial health. The overarching aim of this strategic pillar is to normalize financial advice, ensuring that customers
receive support, by combining the expertise of human advisors with its digital platform, George. By fostering informed decision-
making and providing practical solutions, based on the policies and procedures in place for its core banking activities and which
are intertwined with the financial health framework, BCR enables its customers to build a financially secure and confident future.
BCR Group’s financial health framework is based on the monitoring of five indicators that support its customers to better
understand their financial situation and make informed decisions to grow their wealth: 1) budget, 2) reserve, 3) protection, 4)
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investments and 5) pensions. The calculation of these indicators helps BCR Group take a personalized approach towards
supporting each digital enabled customer by understanding their individual circumstances.
The financial health of BCR Group’s retail customers is reflected by the status, stability and knowledge of their financial situation.
By analyzing and evaluating the financial health indicators of its customers, BCR Group can better understand their needs to help
them become financially independent. Information regarding the financial health indicators is available on the digital platform
George, with some already accessible and others being gradually introduced as the framework evolves. To better understand the
needs of its customer base regarding financial advice, BCR will continue to focus its strategy and further enhance its financial
health initiatives to improve customer loyalty and build trust.
The Retail Division is responsible for monitoring and implementing this framework.
PRIVACY
BCR Group prioritises the protection of customer data, recognising that the right to data protection is enshrined in the EU Charter
of Fundamental Rights.
Thus, the objective of the Data Protection Policy together with its related procedures (i.e., Data protection procedure - general
procedure referring to the internal rules on data processing, Data protection procedure referring to data breaches management and
Data protection procedure related to the processing of employees' data) is to achieve and maintain appropriate protection of all
personal data according to regulatory and business needs within BCR specifically to reach compliance with the GDPR.
The BCR Group Security Strategy, approved by the Management Board, defines strategic goals that are aligned with regulatory
standards. Organizationally, many security policies and procedures govern security-related requirements and controls for systems,
infrastructure and BCR Group’s own employees to protect data of its customers. Compliance with these policies is mandatory for
BCR Group. All security-related policies are reviewed and updated on an annual basis. Higher frequency updates are possible, if
necessary, such as to integrate new regulatory requirements.
BCR Group places significant emphasis on providing customers with clear and comprehensible information regarding the
processing of their personal data. Where necessary, prior consent for the processing of personal data is obtained. Further
information related to data protection is made available to BCR Group’s client base on the website. This includes the rights of its
clients regarding their data as well as whom to contact in the case of any concerns related to data processing or potential breaches.
BCR Group ensures that employees are well-informed about the implementation of Group policies related to privacy through
yearly trainings. This comprehensive understanding enables its staff to better serve BCR Group’s customers by adhering to high
standards of service and data protection. Consequently, these policies directly support BCR Group’s commitment to meeting the
needs and rights of its customers, while mitigating the risk of any cyberattacks or data breaches.
BCR Data Protection Policy
BCR‘s Data Protection Policy, along with its associated procedures, are available to all employees via an internal communication
platform. The aim is to ensure and sustain the appropriate safeguarding of all personal data in alignment with both regulatory
requirements and business needs. This objective is focused on achieving compliance with the General Data Protection Regulation
(GDPR). In alignment with the GDPR, the focus of the Data Protection Policy is the personal data of natural persons. Additionally,
personal data pertaining to natural persons acting for, or on behalf of a legal person are included within the scope of this policy.
The Management Board is ultimately accountable for the policy’s implementation. Accountability for policy implementation is
assigned to data controlling representatives within each BCR division.
Complementary to this policy, BCR has implemented a bank-wide Data Protection Procedure, which include detailed annexes on
different data protection requirements (e.g., roles and responsibilities, transparency, data subjects’ rights, etc.). This procedure
ensures continuous adherence to data protection standards and allows for identification of areas for improvement.
The following mandatory requirements ensure that data protection governance is effectively implemented within the organization:
1. Data Controller Responsibility Annex: The Data Controller Responsibility Procedure aims to ensure the adequate
protection of all personal data and information assets to meet regulatory and business requirements in data processing.
The standards require data privacy by design and by default, records of processing activities, technical and organizational
security requirements (including data secrecy), responses to data breaches, data protection impact assessments and
awareness and training programs.
2. Data Protection Officer Annex: The Data Protection Officer Procedure outlines detailed provisions governing the tasks
and other legal functions related to data protection.
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3. Data Processing Legitimacy Annex: The Data Processing Legitimacy Procedure sets out the fundamental principles for
data processing, including data transfer and storage limitations. The standards cover, among other things, key
prerequisites for processing personal data, the commissioning of processors, data transfers to third countries or
international organizations as well as time limits for data storage and deletion.
4. Transparency and Data Subjects Rights Annex: The Transparency and Data Subjects Rights Procedure defines the
functions and conditions relating to data processing transparency and the rights of affected individuals.
By implementing this internal policy, BCR ensures that data protection rules are respected through all its internal processes
(comprising rules to follow, templates, other internal obligations, which reflect the legal provisions on data protection etc.). The
Data Protection Policy and procedure are transposed from Erste Group by the Data protection department and adapted to local
specifics. The adoption process follows the rules applicable at BCR Group, entailing all the competent reviewers. After adoption in
BCR, the Data Protection Policy and procedures follow the same adoption flow in subsidiaries.
The Data protection policy and procedures provide rules on transparency principle, which is subject to specific privacy notices. The
privacy notices are updated when necessary. The transparency principle is ensured through general and/or dedicated privacy
notices available on BCR’s website, as well as in the Framework agreement for Banking Services, signed between the customer and
BCR. Depending on the product contracted by the customer, dedicated privacy notices are also provided (e.g., loans, current
accounts, investments), enabling customer to understand how their data is processed in detail.
Each subsidiary adopts its privacy notices adapted to their own processes.
BCR Cyber and Information Security Policy
BCR Group's information technology and cyber security operate under a robust set of cyber security policies and procedures. The
Cyber and Information Security Policy, along with its associated procedures, is available to all employees via an internal
communication platform, and it outlines clear objectives, governance structures and technical safeguards to protect customer data
and assets. The overarching objective of the cyber security framework is to protect all types of information assets from cyber threats.
Additionally, it outlines the organizational structure, related roles and responsibilities, information security risk management
context, as well as definitions and implementation to be performed within BCR. Generally, the security procedures refer to
protection of the BCR infrastructure, including applications and data therein. Each procedure has a set of security controls, which
are monitored on a regular basis. Generally, the security procedures have to be implemented by all BCR subsidiaries as well.
The Chief Information Security Officer (CISO) is accountable for cyber and information security control and management within
the Group, including the definition of the cyber and information security strategy, as well as for the implementation, monitoring
and update of the Cyber Information Security Policy. A primary task of the CISO is to monitor and support the implementation of
cyber and information security, ensuring it follows 'good practices' and is executed effectively, efficiently, and consistently in daily
operations.
The rules and requirements stipulated by this policy are binding for all BCR Group employees, contractors, or service providers
who implement, manage, or operate IT solutions used by or for BCR Group entities and their employees and customers.
Contractors, service providers or other vendors receive BCR’s security requirements in both RFPs, as well as annexes within
contracts. The BCR Management Board is the most senior level responsible for the implementation of the policy.
Due to the dynamic nature of cyberthreats, BCR Group regularly adapts its policies to meet changing practices and developing
technologies. The policy has been updated to adhere to the requirements of the Digital Operational Resilience Act (DORA,
Regulation (EU) 2022/2554 on digital operational resilience for the financial sector). Additional internal stakeholders and experts
were consulted in the drafting of this policy to best cater to the protection of customer data.
ACCESS TO PRODUCTS AND SERVICES (SOCIAL BANKING & MOBILE BANKING UNITS)
Social banking at BCR seeks to improve access to financial goods and services for vulnerable groups who might otherwise be
excluded, offering them access to financial products. Social Banking seeks to foster starting entrepreneurs through working capital
loans and start up loans to create new jobs, as well as supporting vulnerable groups by improving their financial situation through
special accounts and micro loans. For example, BCR offers specialized services for Non Governmental Organizations ("NGO’s"),
including tailored products such as current accounts, financing options, and support for community and educational initiatives.
BCR services are designed to empower organizations by providing the financial tools they need to grow and make a positive impact.
We support NGO’s within following their purpose through dedicated banking solutions.
15 https://cdn0.erstegroup.com/content/dam/at/eh/www_erstegroup_com/de/%C3%9Cber%20uns/Social-Banking/social-banking-
activity-report-2024.pdf
16 https://www.bcr.ro/ro/business/ong-uri#
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Social Banking Risk Policy
The Social Banking Risk Policy applied by BCR covers social banking lending to private individuals, starting entrepreneurs or
special impact projects, regardless of the further client segmentation.
The policy applied for the social banking lending activities within BCR is also aimed to support the UN Sustainable Development
Goals ('SDG'): SDG 3 (good health and well-being), SDG 4 (quality education), SDG 5 (gender equality), SDG 8 (decent work and
economic growth), SDG 9 (industry, innovation and infrastructure) and SDG 10 (reduced inequality), and, thus, we contribute at
evolving to a more inclusive society by facilitating the access to banking products and services.
BCR’s Social Banking Department, which reports to the CEO, is responsible for the overall implementation of the policy which is
made available to internal stakeholders via a platform.
Group contributes to the annual impact report( 15) of Erste Social Banking disclosing information related to the output of its
activities as well as the direct and intended outcomes of its clients. Data in the annual impact report is collected through a relevant
number of interviews with BCR clients. Additional information related to our social banking projects is presented on a dedicated
webpage( 16).
S4-2 – PROCESSES FOR ENGAGING WITH CONSUMERS AND END-USERS ABOUT
IMPACTS
FINANCIAL HEALTH, ACCESS TO PRODUCTS AND SERVICES
Direct engagement with retail customers occurs through a variety of channels, both online and in the branches where BCR offers
advisory services to help them achieve their financial goals. To ensure that its customers continue to benefit from BCR’s positive
impacts, an advisory framework is in place. This framework revolves around encouraging active customer engagement around BCR
advisory propositions, which leads to addressing their drivers of financial health. A key element of this approach is ensuring advice
is easily accessible across all channels.
BCR also has processes in place to determine the effectiveness of these channels of engagement. These are mainly based on annual
monitoring of key data such as topics addressed, frequency and number of clients raising a particular topic, as well as the overall
levels of usage and knowledge of the channels available. Following financial health discussions, surveys are regularly triggered,
targeting a representative sample of customers. Feedback, which is gathered on a quarterly basis, is subsequently analyzed through
studies that contribute to shaping the organization's business strategy. BCR continuously improves accessibility and service quality
by collecting and analyzing customer feedback from advisory interactions. Further research is also undertaken to gain insight into
the perspectives of retail customers that may be particularly vulnerable. For example, the social banking impact report includes
specifically targeted feedback from a representative sample that included financed 'NGOs' who provide support to people in
financial difficulties.
BCR designs and delivers financial health products and services tailored to the diverse needs of people in the regions in which it
operates. The development and approval of new offerings follow a structured process to ensure high-quality standards. Moreover,
BCR creates inclusive environment in which special needs customers (e.g. those with disabilities) have adequate access to its
products and services.
BCR conducts user interviews and pilot programs prior to the full rollout of new products to gather customer feedback at an early
stage and adapt its processes if necessary. BCR Retail Division is responsible for ensuring engagement with our retail customers.
PRIVACY
The processes surrounding the GDPR are regulated and are valid for all customers, regardless of their background. Therefore, BCR
Group does not directly engage with its customer base for insight into an already heavily regulated process. For further information
please refer to chapter 'S4-3 - Processes to remediate negative impacts and channels for consumers and end-users to raise concerns'.
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S4-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR
CONSUMERS AND END-USERS TO RAISE CONCERNS
PRIVACY
There is no material negative impact related to data protection, but a material risk related to data breaches has been identified. Data
breaches are defined as breaches of security leading to the accidental or unlawful destruction, loss, alteration, unauthorized
disclosure of, or access to, personal data transmitted, stored, or otherwise processed. The reasons for a data breach can vary, e.g.
from an email sent erroneously to the wrong recipient, to a system malfunction. Data breaches can be detected through internal
technical or organizational measures (e.g., through the data leak prevention system or through internal reports from employees
that became aware of the data breach), or through external reports (e.g., through a notification from the wrong recipient).
BCR Group has implemented a structured process to ensure that personal data breaches can be promptly investigated and notified
to the National Supervisory Authority for Personal Data Processing ("ANSPDCP"), in case the conditions of the GDPR are met,
according to the internal policy and procedures.
All data breach reports are collected and evaluated at the BCR Group entities level. According to Article 33 of the GDPR, a
notification will be filed with the responsible data protection authority if the data breach is likely to result in a risk to the rights and
freedoms of natural persons. Beyond that, the data breach is communicated to the affected person, when it is likely to result in a
high risk to their rights and freedom in accordance with Article 34 in GDPR. The relevant risk assessment is supported by an
internally developed data breach risk assessment, based on the methodology established in line with the European Data Protection
Board (EDPB) guidelines and other competent authorities. Developing and refining BCR Group’s incident response plan is a crucial
element of its risk mitigation efforts. This includes clear protocols for identifying, reporting, investigating, lessons learned and
mitigating any potential negative impacts on customers.
A ll data breaches are documented and evaluated, with root causes analyzed on a case-by-case basis and followed by relevant
corrective actions. In 2025, BCR Group had no data breaches notified to the relevant data protection authority.
In 2024, BCR Group had one data breach investigated by the relevant data protection authority. Separately, no communications
were issued to customers regarding high-level risks to their personal rights and freedoms in 2024 and 2025. For comparison, the
data breach investigated in 2024 did not result in a high risk, while in 2025 BCR Group had no data breach investigated by the
authority.
BCR Group places great emphasis on providing customers with clear and understandable information about how their personal
data are being processed. Prior consent is obtained for the processing of personal data upon initiation of the business relationship or
whenever necessary. Furthermore, providers are contractually committed to fulfilling strict requirements related to the handling of
customer data.
BCR ensures, through multiple channels available (website, e-mail address or post, territorial units, contact center), that its
consumers can submit a request regarding their rights under GDPR. In addition, the Data Protection Officer carries out monitoring
measures as required under Article 39 of the GDPR, at the local level.
The processes surrounding the GDPR are heavily regulated and thus are valid for all customers, regardless of background.
Separately, related to vulnerable consumers, if processing activities are subject to data protection impact assessments (“DPIA”), the
impact of the processing on vulnerable subjects is also assessed.
ACCESS TO PRODUCTS AND SERVICES
BCR Contact Center serves as the first point of contact for customers seeking immediate support, operating 24/7 through multiple
channels (telephone, e‑mail, George messages, live chat, Facebook Messenger). In Contact Center, different communication
channels are available for customers to receive support and raise concerns, with all dissatisfaction formally registered as complaints
and used to refine internal processes. Issues raised through these channels are systematically recorded, categorized, and monitored
within dedicated reporting systems to ensure timely resolution. Channel effectiveness is assessed through audits, quality checks,
feedback, and performance indicators, ensuring accessibility and reliability. Further reinforcing BCR Group’s commitment to
transparency and trust in its business interactions, customers have access to a whistleblowing platform which can be used on an
anonymized basis (for more information, see chapter 'G1-1 - Business conduct policies and corporate culture').
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S4-4 – TAKING ACTION ON MATERIAL IMPACTS ON CONSUMERS AND END-USERS,
AND APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL
OPPORTUNITIES RELATED TO CONSUMERS AND END-USERS AND EFFECTIVENESS
OF THOSE ACTIONS
BCR Group’s various initiatives share a common goal of promoting financial and social inclusion, while properly mitigating the
risk of data breaches and cyberattacks. These actions are designed to address the diverse needs of different demographic groups,
from individuals facing financial exclusion to entrepreneurs trying to start their own business. Continuo us monitoring, regular
assessments, and stakeholder engagement are integral to ensuring the effectiveness and adaptability of these program s. By focusing
on education, financial stability, and social innovation, BCR Group aims to create a positive and lasting impact on its customer
base.
All the following actions are performed on an ongoing basis. F ive fi nancial health indicators are live in George app starting end of
2025. For the implementation of the actions listed in the table below, BCR Group allocates budgets and resources from various
departments (e.g., Retail Distribution Division, Retail Development Division etc.). Budgets for training and initiatives are
coordinated annually at BCR Group level.
As concerns the implementation of these actions, no significant Capex or Opex was identified as needed for both this year and for
medium term.

Subtopic | List of key-actions | Policy
S4-Financial Health | 2025 Financial Health Indicators Rollout (via George & Advisors) | A standalone dedicated policy is not in place, but these actions are covered by the existing Financial Health Framework
S4-Financial Health | George enables financial health advice | A standalone dedicated policy is not in place, but these actions are covered by the existing Financial Health Framework
S4-Privacy | Incident response plan | Local Strategies under overarching BCR group objective Data protection procedure, along with annexes Data protection policy Data protection procedure referring to data breaches management
S4-Privacy | Data Protection Control Framework | Overarching BCR group objective Data protection procedure, along with annexes Data protection policy Data protection procedure referring to processing of employees' data
S4-Privacy | Cyber Security Employee security awareness Customer Security Awareness | Overarching BCR group objective Information Technology Security policies Cyber Security policies Employee Security Awareness trainings Informing BCR customers about active threats
S4-Access to products and services | Microfinancing and Social Banking | Overarching Erste Group objective BCR Social Banking Risk Policy
S4-Access to products and services | Mobile banking units | A dedicated policy is not adopted, but this action is carried out in line with the local strategy (under overarching Erste Group objective)

FINANCIAL HEALTH (ENTITY SPECIFIC)
2025 Financial Health Indicators Rollout (via George & Advisors)
Through financial advice and products and services offerings, BCR positively impacts the financial health of its customers,
contributing to an improvement in their overall economic stability. By actively supporting its customers' financial health, BCR also
improves customer satisfaction and loyalty, building on the opportunity to enhance its own financial performance and market
position.
As a part of its approach to Financial Health, in 2025 BCR rolled out all financial health indicators (described in S4-1 ‘Policies
related to consumers and end-users’) to all retail customers and defined its overarching awareness campaign among customers.
This campaign runs both through advisors and digital channels starting 2026. This process is supported and locally coordinated by
BCR Retail Division, and Erste Group Retail Transformation is responsible for ensuring the rollout.
George enables financial health advice
BCR took a major step forward in empowering clients to achieve financial well-being by embedding Financial Health directly into
George. Moving beyond the standalone Financial Coach platform used by advisors, BCR introduced a dedicated section in George
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(Fin Coach) that evaluates each client’s financial situation through five key indicators – budget, reserve, protection, pension, and
investments – complemented by actionable recommendations and educational resources.
In January 2025, BCR launched the Benefits Program, helping customers achieve their goals through personalized
recommendations and rewarding all Financial Health categories. The efforts delivered significant impact as shown in the section
'S4-5 T argets related to managing material negative impacts, advancing positive impacts and managing material risks and
opportunities'.
PRIVACY (RISK)
Incident response plan
BCR Group has an incident response plan, defined as a crucial element of our risk mitigation efforts on the topic of privacy and
data processing. While clear protocols are in place in internal procedures and policies for identifying, reporting, investigating,
lessons learned and mitigating any potential negative impacts on all BCR Group customers, these protocols must be communicated
and taught to all employees across the group.
Separately, in order to prevent data breaches, BCR Group invests in training programs to ensure all staff members are well
equipped with the knowledge and skills necessary to handle customer data securely, and how to respond to incidents properly. In
the training material, there is a great emphasis on the detection, prevention and handling of data breaches. In addition, our
employees are then expected to be able to communicate effectively to our customers about the processing of their personal data. By
emphasizing the importance of data protection, BCR Group aims to not only safeguard its customers' information and maintain
their trust in its organization, but also to foster a culture of responsibility by raising awareness among its employees about potential
risks.
The Data Protection Team provides a training framework comprised of a suit of training forms, such as online (at least once a
year)/ individual (subject to topic or event), applicable in different cases such as general know-how or particular topics (specific
areas such as data protection agreements, marketing/profiling), performed for all BCR employees/external contractors within BCR
and BCR subsidiaries throughout the year. The training framework is updated yearly from two perspectives: (i) the type of trainings
to be performed throughout the year and (ii) the information to be delivered through the trainings. The effectiveness of actions is
monitored by tracking the level of participation and completion rate.
The training program is overseen by the Data Protection Officer, through delegates responsible for organizing and/or conducting
the trainings at the level of BCR Group.
These trainings directly contribute to the achievement of BCR Group’s objectives outlined in its Data Protection and Cybersecurity
Policies. Specifically, they support BCR Group’s goal of ensuring the highest standards of data security and customer privacy, which
are critical components of its overall commitment to transparency.
Reported data breaches are handled by expert teams who assess the potential risks using an internally developed data breach risk
assessment. Remedial action is taken by active engagement, such as directly contacting the person who reported or caused the data
breach and instructing them on how to remediate the threats to the rights and freedoms of the data subjects. The relevant actions
range from deleting data, to changing of passwords, giving general advice on how to secure data or how to adapt processes to make
them even more data protection friendly. Refresher courses and ultimately disciplinary measures are also actions that help to
prevent data breaches and mitigate the associated risks.
Data Protection Control Framework
A specific Data Protection Control Framework is used to ensure ongoing adherence to data protection standards and to identify any
areas requiring improvement. The design and execution of the control framework is derived from requirements defined in the BCR
Data Protection Policy and BCR Data Protection Procedure. The controls therefore cover the principles relating to processing of
personal data as laid out in the GDPR. The scope of the control framework is to monitor and ensure that the policy and the
procedures are properly implemented. A self-assessment is done on a local level and afterwards approved on Erste Group level.
Continuous monitoring and quality assurance are also done on local and at Erste Group level.
Cyber Security
BCR Group's Cyber Security Policy outlines objectives, governance structures and technical safeguards to protect the assets and
customers’ data. Due to the dynamic nature of cyber threats, BCR Group regularly reviews and updates the framework to reflect the
latest developments, such as those in technology or regulatory requirements.
BCR Group's pro-active approach reflects its deep dedication to have the trust of its customers, partners and stakeholders. It
continuously invests in advanced and innovative technologies, robust infrastructure and expert teams to ensure that all of BCR
Group's data are handled in a secure and confidential manner. In todays increasingly digital banking world, BCR Group is
17 https://www.bcr.ro/ro/persoane-fizice/informatii-utile/securitate/securitatea-tranzactiilor-pe-internet
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committed to protect its assets and customer data with state-of-the art cyber security services and tools. BCR Group's multi-layer
security architecture includes, for example, advanced firewall technologies, distributed denial of service (DDoS) protection,
comprehensive endpoint detection and response (EDR) solutions, cyber threat intelligence (CTI), security operation center (SOC)
as well as robust intrusion prevention systems (IPS).
Employee Security Awareness
BCR Group invests in cyber security trainings and awareness campaigns to help employees recognize and avoid cyber threats like
phishing campaigns or social engineering attacks. Therefore, BCR Group regularly educates its employees, executives, board
members, and specific user groups (such as branch office employees, newcomers, and trainees) through BCR Group’s cybersecurity
awareness program, including mandatory annual web-based training, as well as phishing simulations and security awareness
events.
Customer Security Awareness
In addition to the cyber security awareness program focusing on internal and external personnel, BCR also sets activities to help its
customers strengthen their cyber security awareness. BCR offers best-practice recommendations and cyber security awareness
sessions to educate on how to detect, prevent and respond to cyber threats. Furthermore, BCR periodically publishes warnings of
current cyber threats (e.g., social engineering attacks, phishing, fake calls) on different channels like George online banking system,
on the website 'Securitate bancară'( 17) but also on social media channels. Additionally, BCR issues targeted fraud alerts to
customers during peak shopping seasons (e.g. holiday seasons, Black Friday) to help them stay vigilant when fraudulent activity is
likely to increase.
ACCESS TO PRODUCTS AND SERVICES (POSITIVE IMPACT)
Microfinancing and Social Banking
BCR’s Social Banking initiatives are focused on financing NGOs, Social Enterprises and startups across its core market, targeting
clients who are typically underserved by traditional banking services. This initiative ensures that these organisations have access to
essential financial resources, enabling them to address social and environmental challenges effectively, and contribute to
sustainable community development.
The Social Banking department within BCR supports the financial inclusion of social organizations and entrepreneurs by providing
tailored financial products, such as loans and current accounts, and capacity-building programs such as Amplify and Marc.
Amplify, a BCR Social Finance and Launch Romania initiative, supported by BCR and Erste Foundation, contributes to a thriving,
more sustainable and innovative social-impact sector, where all actors act and engage as a purpose-driven community. Marc is a
high-impact enterprise scaling program, a joint initiative of Erste Foundation, Erste Social Finance Holding, IFUA Nonprofit and
SIMPACT, implemented in Romania by BCR, BCR Social Finance and Synerb.
Furthermore, BCR offers specialized services for NGO’s, including tailored products such as current accounts, financing options,
and support for community and educational initiatives. BCR services are designed to empower organizations by providing the
financial tools they need to grow and make a positive impact. We help NGO’s achieve their mission with dedicated banking
solutions.
Periodical social impact assessments, including client surveys, are conducted to evaluate the outcomes of these initiatives. This
continuous evaluation ensures that the Social Banking financings and programs deliver measurable results, enhancing the
economic stability of its clients and strengthening their capacity to create meaningful change within their communities and
Romania. For metrics related to the actions presented under this section please refer to 'S4-5 Targets related to managing material
negative impacts, advancing positive impacts and managing material risks and opportunities'.
Mobile Banking Units
Since its inception, BCR’s financial inclusion program for rural and small urban communities has traveled 27,000 km and reached
52 communities, supporting over 7,500 individual s through financial education and personalized banking services via its mobile
units.
In 2025, BCR has expanded this program by putting into operation a second mobile unit which is Romania’s first 100% electric
modular banking truck. These vehicles travel nationwide to provide underserved communities with access to modern financial
services and entrepreneurial education. Through this initiative, the bank aims to mature the program and scale its impact, offering
personalized solutions that support the long-term development and financial autonomy of local communities.
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S4-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS,
ADVANCING POSITIVE IMPACTS AND MANAGING MATERIAL RISKS AND
OPPORTUNITIES
FINANCIAL HEALTH (OPPORTUNITY)
A crucial element in enhancing the financial health of BCR’s customers is the implementation of financial health indicators
(previously detailed in section 'S4-1 Policies related to consumers and end-users’) throughout the various channels as well as in
advisory services provided in branches.
This initiative enables customers to receive more tailored advice to achieve their financial objectives and to improve their financial
growth objectives. Additionally, the calculation of these indicators will allow BCR to focus on further development of its business,
by refining the advice and tools offered. A focused and tailored response to the financial needs of BCR’s customer base is further
aimed at consolidating customer loyalty to further enhance the Bank’s financial performance and market position. To monitor the
effectiveness and progress of the financial health related actions BCR has defined targets for the short term. As indicated in the
table below, in 2025 more than 895,000 Financial Health dialogues took place, thus financial health is part of our clients’ everyday
banking experience.
T argets set for Education support in financial health dialogues, and actuals:

|  |  |  |  |  | Targets
|  | Baseline | Actual |  | Short term
| Metric | Year | Value | 2025 | 2024 | Year | Target | Year | Target
Education support participants 1 2 | Number of participants | 2022 | 32,000 | 895,976 | 634,271 | 2025 | 1,000,000 | 2026 | 1,500,000

1The target shows the total number of persons participating in financial health related programs
2 This metric reflects the number of individuals completing a financial dialogue process with resumes with an action such as for
instance setting a financial goal. The computation methodology for this metric considers only dialogues which are following at least
one step of the defined process and it relied on completion reports based on George app or filled in by the advisors.
PRIVACY (RISK)
Due to the rigorous regulatory framework governing data protection and cybersecurity, BCR Group has not set additional
quantitative targets beyond its commitment to strict GDPR compliance (including preventing data breaches), in order to ensure the
highest level of protection for customer data.
BCR Group monitors all data breaches, with oversight provided by the Data Protection Team and the Data Protection Officer
(DPO). In accordance with internal policies, all incidents are reported to the Data Protection Team, which determines, in
collaboration with the DPO, if notification to the relevant data protection authority is required. Furthermore, the team identifies if
it is necessary and implements targeted employee training as a corrective measure following incident analysis, continuously
monitoring that data protection rules are understood and applied to prevent future breaches.
As a result of the implemented actions, as previously described above and also in section 'S4-4 – Taking action on material impacts
on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers
and end-users and effectiveness of those actions', in 2025, BCR Group had no data breaches notified to the relevant data protection
authority (qualified as significant incidents). Significant incidents are data breaches that are likely to result in a risk to the rights
and freedoms of natural persons, which are reported to the data protection authority. Sanctions are any applicable sanction that the
data protection authority may impose, including fines (sanctions are detailed in Article 83 of the GDPR). In 2024 BCR Group had
one data breach investigated by the relevant data protection authority which did not result in a high risk to te person concerned.
ACCESS TO PRODUCTS AND SERVICES
Performance indicators
BCR is committed to improve access to products and services, including for customers facing vulnerabilities, as well as the financial
health of its customers, through tailored initiatives. BCR has set internal targets (milestones) that directly support these objectives
and contribute to the financial health and economic stability of customers. The internal targets f or social banking financing and job
creation and retention are related to measuring the effectiveness of BCR’s Social Banking initiatives.
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The interna l target o f social banking financing volume focuses on increasing access to financial services for starting entrepreneurs
and NGOs / social enterprises. This is achieved by financing micro companies and start-ups that do not meet regular retail lending
criteria.
The volume of social banking financing is reported quarterly by local Social Banking Department of BCR to Erste Group and
annually to the Management Board. Job creation and preservatio n are assessed through the social impact forms filled in by NGO
clients and individual discussions and then reported in Erste Group Social Banking Impact report along with qualitative impact
data performed on a representative sample of social banking clients. Information regarding the number of beneficiaries involved
into the programme each year and the SDGs supported is collected through the social impact form filled in by NGO clients.
By promoting social banking and achieving these internal targets, BCR contributes to the financial health and economic stability of
its customers, ultimately leading to a better quality of life and a stronger market position.
BCR has developed social banking yearly performance indicators. Part of them serve as a measure to track the progress of the social
banking internal targets, which have been set.
The individual yearly social banking performance indicators presented below, measure the progress and summarise the social
banking internal targets. Social banking financing includes microfinance, start-up financing, and financing for social organisations.
The intern al target for education support participants is based on the number of participants in educational activities organised or
initiated by Social Banking each year. The job creation and retention metric relates to the financing and support activities of Social
Banking. These indicators are based on information provided directly by the clients (NGOs) through the Social Impact Form or
through direct discussions with them. The data on job creation, job preservation, number of beneficiaries and SDG contributions
relies on the clients’ self‑reported information, which represents the best available source for these metrics. The effectiveness of
these measures is assessed through a recurring client survey coordinated at Erste Group level and supported by the local BCR team.

Social Banking Yearly Performance Indicators | 2024 | 2025
New social banking financing in RON | 71,546,887 | 22.873.828
New social banking financing in number of new clients | 319 | 1
Microfinance and start-up finance in RON * | 60,302,158 | -
Microfinance and start-up finance in number of new clients * | 317 | -
Social organisation finance in RON | 11,244,729 | 22.873.828
Social organisation finance in number of new clients | 3 | 1
Job creation and retention (number of jobs) | 134 | 576
Number of education support participants (Social Banking) | 4,270 | 2,221

*Starting with 2025, BCR no longer granted credits for new Startups.
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12.4. Governance information
Business conduct
This section focuses on BCR Group’s business conduct and its commitment to ethical behavior. BCR Group places a high value on
ethically correct behavior, considering it as a fundamental prerequisite for its business activities and strategic priorities. This
commitment is reflected in the Statement of Purpose defined at Erste Group level, which requires employees to consider not only
the legality and profitability of business decisions but also whether they are the right thing to do. Building on this foundation, BCR
Group’s Code of Ethics, last updated and approved by the Management Board in January 2025, sets forth binding rules and ethical
principles for all employees and B oard Members. The Code emphasises responsibility, respect, and sustainability in all business
activities. Additionally, Erste Group and therefore BCR Group, is committed to the principles of the UN Global Compact, which
include upholding human rights, labour standards, and combating corruption, drawing from key international declarations and
conventions.
In the context of the D ouble Materiality Assessment, three sustainability matters have been identified as material within Business
Conduct: one due to its potential positive impact and two, due to their potential risk implications.

Sustainability Matter | Type of IRO | IRO Description | Value chain | Time horizon
G1 – Corporate culture | Potential Positive impact | BCR Group has a positive corporate culture, promotes a safe, transparent and ethical environment thus ensuring healthy working environment and can increase employee satisfaction. | Own operations | Short-term
G1-Protection of whistle-blowers | Risk | The absence of effective whistle-blower protection and channels, or failure to implement whistle-blowing policies and procedures can lead to potential loss of profits, regulatory violations and reputational damage. | Own operations | Long-term
G1-Corruption and bribery Prevention and detection including training | Risk | Failure to ensure adequate awareness, control, and monitoring of corruption and bribery risks may lead to undetected incidents involving employees and that can expose BCR Group to financial penalties, legal costs, and reputational harm. | Own operations | Long-term

Corporate Culture
Our corporate culture is strategically aligned with the way BCR Group positions itself on the market: as a community partner,
fostering the financial education in Romania. This is the main strategic driver that brings together our corporate values of care,
learning, results and order.
Protection of whistleblowers
BCR Group has implemented robust whistleblower protection mechanisms that are essential for maintaining organizational
integrity and ethical standards. These mechanisms foster a transparent and accountable work environment by encouraging the
reporting of misconduct without fear of retaliation.
Secure and confidential reporting channels are critical to safeguarding individuals who disclose unethical practices. Without such
protections, whistleblowers could face significant risks, including professional setbacks, social exclusion, or other forms of
retaliation—outcomes that can erode trust within the organization.
By providing accessible and confidential reporting avenues for all stakeholders, BCR Group ensures that concerns are addressed
promptly and effectively. Regular audits and transparent processes reinforce the reliability of these mechanisms, minimizing
potential harm and preventing whistleblowers from experiencing isolation or disadvantage. This proactive approach strengthens
compliance, mitigates risk, and upholds the organization’s commitment to ethical conduct. No incidents related to breaches of
whistleblower protection have been identified.
Corruption and bribery – prevention and detection including training
Training programs aimed at preventing and detecting corruption and bribery are a key pillar of Erste Group’s anti-bribery and
corruption (ABC) strategy. Offered to all employees, these initiatives play a crucial role in fostering awareness and understanding of
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ethical conduct. Without such measures, a lack of knowledge and sensitivity to conflict of interest (CoI) and ABC risks could result
in employees failing to identify corrupt practices or becoming unintentionally involved in them, whether through active or passive
participation.
In the event of a corruption-related incident, the consequences can be severe. The resulting loss of trust in the organisation would
be difficult to restore and could necessitate extensive and prolonged remediation efforts. Moreover, such incidents may lead to
significant reputational damage, financial losses and even criminal consequences for the individuals involved or the organization
itself.
Ultimately, these preventive initiatives help cultivate a strong business conduct for the sake of zero tolerance to bribery and
corruption, reinforcing BCR's Group reputation as a principled and trustworthy financial institution.
G1-1 – BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE
BCR Group’s policies relating to business conduct comprise the Code of Ethics, which fosters its corporate culture by embedding its
core values of people, fairness and transparency into every aspect of its operations. BCR Group’s culture is aligned with its business
strategy. BCR Group regularly monitors and refines its culture through exchanges, employee feedback and 360° leadership
evaluations to ensure it remains strong and effective. BCR Group enhances its corporate culture through leadership development,
employee training on values and ethics and engagement surveys.
To ensure the integrity and trust in the organisation, BCR Group has implemented two key policies: the Whistleblowing Policy and
the Policy on Conflict of Interest and Anti-Bribery and Corruption (implemented in BCR through Anti-Corruption Policy and Code
of Ethics). These policies are essential components of its governance structure and contribute to an ethical and transparent work
environment.
Corporate culture
The aforementioned policies and the frameworks indicated below are aimed to nurture the integration of sustainability principles
into our corporate culture, whilst also encouraging employees to adopt our values.
BCR Group has identified financial education as a main driver for our strategy and for growing our corporate culture. A financially
educated person will make better financial decisions. And it gives our employees a sense of purpose. Our core values of care,
learning, results, and order were established as part of our mission to foster an internal culture that empowers employees to grow
personally and professionally while supporting our clients in becoming financially educated.
We actively promote these values through consistent involvement in internal employee training, learning programs and
volunteering activities. In addition, we conduct internal campaigns to highlight employee benefits through our dedicated platform,
Valued@BCR. This platform not only informs but also reinforces our commitment to creating a supportive and engaging work
environment that reflects our core values. Through annual Employee Engagement Survey ("EES") we listen to our teams,
understand their needs, and take action to improve their experience.
Each employee can benefit from one paid volunteering day per year, motivating them to engage in community activities and live
these values. For the last 8 years we, as a team, were actively involved in impactful sustainability programs and acted as an active
promoter of financial education.
Internal communities created around common values, beliefs and interests, with the involvement of our employees, drive an
inclusive environment (e.g. Step Into the Future, Mindful Parent, Magic Advisor, Edu Fin Teachers, Career School Teachers). The
members of these communities act as ambassadors and are involved in various engagement activities aimed at promoting and
nurturing our internal culture.
We regularly inform Board Members about employee related initiatives. These meetings also serve as a platform to review the
results of the Employee Engagement Survey and identify actionable ways to support our employees’ attachment to our
organizational culture.
Board Members encourage and offer guidelines regarding leadership programs development, by acting internally as Sponsors for
specific learning modules and participating in internal & external learning and corporate activities and events.
The main themes promoted and communicated as part of our corporate culture include:
— People: Valued@BCR: A dedicated initiative that highlights our benefits, available to our employees, career opportunities and
personal development, work-life balance, ensuring they feel appreciated and supported.
18 https://www.bcr.ro/en/about-us/whistleblowing
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— Financial Health: These campaigns are designed to help employees to better understand our strategy and direction, fostering
alignment and engagement across all levels.
— Society & Education: We actively promote the organization’s community engagement initiatives, encouraging employees to
participate and contribute to our community projects.
— Digital Excellence (Bank on an App): integrating digital tools into internal operations, reducing manual workloads, and
promoting sustainability by minimizing paper consumption.
— Commercial Time: BCR’s advisory approach, processes and commercial focus.
By maintaining an open dialogue at the leadership level, we ensure that our strategies align with employee needs and that we
continuously enhance the programs and opportunities that contribute to their growth, satisfaction, and engagement. This
collaborative approach reinforces our commitment to building a workplace culture where everyone can thrive.
We have specific incentives and tools designed to foster and encourage our corporate culture, ensuring employees are engaged,
informed, and continuously developing their skills. These include:
— Echo platform and Viva Engage: a centralized platform that facilitates communication, collaboration, and access to essential
resources, keeping employees connected and informed.
— Learning Platform Courses: training courses available through our learning platforms, empowering employees to grow their
skills and align with the values and goals of the organization.
— Regular Newsletters: these provide updates on internal initiatives, achievements, career & learning opportunities and events,
ensuring transparency and a sense of inclusion across the organization.
— BCR News: dedicated news updates to keep employees up to date with the latest developments within the organization,
reinforcing a shared understanding of our direction and progress.
Protection of whistleblowers
The Whistleblowing Policy establishes group-wide standards to identify, report, and investigate concerns about unlawful
behaviour. This also covers behaviours which are in contradiction to the Code of Ethics, except for topics related to
antidiscrimination and harassment which are managed in a separate and dedicated workflow as per Romanian legislation.
Promoting a well-established whistleblowing process helps BCR Group to manage potential risks and further build trust among
employees, partner organizations, and customers.
A key benefit of this process is the creation of a culture of transparency and accountability. When employees have a safe and
confidential way to report concerns, they are more likely to do so, ensuring that instances of misconduct are detected and addressed
promptly, fostering a safer and more ethical environment. The policy is based on the EU Directive on the protection of persons who
report breaches of Union law no. 2019/1937, and the Law regarding the protection of whistleblowers for public interest no.
361/2022, industry regulations (e.g. The Bank complies with National Bank of Romania Regulation concerning prudential
requirements for credit institutions no. 5/2013) and best practices in the sector. Further details on the categories of incidents
covered by the whisteblowing process are provided in the section 'S1-3 – Processes to remediate negative impacts and channels for
own workforce to raise concerns'.
Following an alert, each whistleblower receives a confirmation within 7 days of its submission. The investigation must be finalized
within 45 days, but depending on the investigation pattern and complexity it is possible to extend this term by up to 90 days.
BCR Group provides various channels for reporting concerns, including email, telephone, personal meetings, and Erste web
platform. These channels are accessible not only to employees but also to third parties, in accordance with applicable whistleblower
protection laws. Information about whistleblowing is provided through BCR Group website( 18), internal mandatory training
courses, annual mandatory information sessions that are conducted using e-learning tools. Whistleblowing Officers receive
specialized training, particularly for data protection, and maintain the independence necessary for their role.
Whistleblowers will not be at risk of dismissal, disciplinary actions or any other contractual penalties or any other form of sanction.
Their identity is protected, even if it is found that what is reported is not confirmed, provided that:
— they act in good faith.
— they believe on reasonable grounds that the information is correct.
— they do not report in bad faith or for the purpose of personal gain or reward.
— they do not make the referral with the purpose of exonerating himself/herself from possible legal/ procedural liability.
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BCR does not tolerate any harassment or victimization (including informal pressures) and will take appropriate action to protect
the identity of whistleblowers that raise a concern in good faith. If a whistleblower requests protection of their identity, BCR will
not disclose it without their consent.
The Whistleblowing Policy covers all employees, customers and third parties. The Compliance Division is responsible for
implementing this policy.
Comprehensive procedures regarding the reporting process and anti-retaliation protections are established within our internal
regulation. A summary of these provisions is publicly available on BCR's website for stakeholders. The BCR alerting system
includes an internal reporting function where employees can report suspected cases or ask questions about possible violations. The
function, under the Chief Compliance Officer, is staffed by qualified and authorized employees within Compliance Division.
Whistleblowing officers are nominated through a Management Board decision. Reports are received and processed confidentially
according to a standardized process, with all reports being investigated and appropriate measures taken if necessary. The system
provides safeguards for whistleblowers, including anonymity protection, protection of involved individuals, and protection against
false accusations. Correct processing of concerns is ensured through regular reporting to the Management and Supervisory Board,
as well as internal and external audits and National Bank of Romania (BNR)
In the policy setting process, in addition to the legal requirements, inputs from internal and external stakeholders were received
through bilateral talks and envisaged trends and best practices in the sector.
All policies related to employees are available on the intranet, accessible exclusively to internal stakeholders. External stakeholders
are informed via BCR website.
Corruption and bribery – Prevention and detection including training
BCR Group’s policies, which are based on Erste Group‘s Policy on Conflict of Interest (CoI) and Anti-Bribery and Corruption
(ABC), directly address the risk identified in the materiality assessment on Corruption and bribery - Prevention and detection
including training. The aforementioned Erste Group documents are implemented locally through BCR Code of Ethics and BCR
Anti-Corruption Policy.
The framework establishes comprehensive standards to prevent and detect conflicts of interest, bribery, and corruption. The
framework is derived from the “Statement of Purpose” and the “Code of Conduct” of Erste Group. Responsibilities and
standardized procedures for managing conflicts of interest and anti-bribery and corruption throughout all levels of Erste Group’s
business (including BCR) are defined in the framework and aim to prevent legal breaches and protect the organization’s reputation
through a responsible corporate culture, a clear compliance framework, and appropriate employee qualifications. This policy is
implemented through prevention training offered to all employees. This training effectively counteracts potential corruption and
bribery, benefiting the interests of consumers, employees and business partners, and promoting a trusting and ethical business
environment.
BCR maintains a consistent approach to preventing bribery and corruption by applying the same standards and expectations to all
employees.
Conflict of Interest and Anti-Bribery and Corruption web-based trainings (WBT) are mandatory for all Erste Group entities,
including BCR Group employees. All BCR Group employees will annually undergo a WBT session for knowledge refreshment and
updating. This approach ensures ongoing alignment with the latest regulations and may involve either revisiting the core course or
completing a newly enhanced version.
In addition to the Erste Group WBT, all BCR employees must complete a mandatory annual module specifically developed to
address Romanian country-specific requirements.
The Management Board fulfills its annual training obligation through a specialized regulatory session conducted by an external
consultant. This training also addresses critical topics, including Anti-Bribery and Corruption (ABC).
The trainings provide an overview of different types of conflicts of interest, such as organizational CoI, confidential CoI, and CoI
regarding procurement or the supply chain. The on-line training module (WBT) consists of four categories: general information,
treatment of benefits, treatment of secondary activities, and personal and close relationships. It details various terms to ensure a
uniform understanding and presents the reporting and approval processes for different types of CoI involving various stakeholders.
Employees must pass a knowledge test with a rate of at least 80% at the end of the training.
The Framework is approved by Management Bodies, who are legally accountable and liable for the group-wide Anti-Corruption
Policy and Code of Ethics. The framework is owned by the Compliance Division and follows a yearly review cycle, during which
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contents are reviewed and assessed based on changes in legal acts or recommendations from public authorities. Investigations
regarding the prevention and detection of corruption and bribery are coordinated by the Compliance Division independently of
business units (including staff and management).
The policy applies across all geographical areas in which BCR Group operates and addresses the needs and concerns of all affected
stakeholder groups. Inputs from internal and external stakeholders, obtained during bilateral meetings, were considered in the
policy setting process. The policy is made available through the intranet for all employees and is part of the yearly compliance
trainings that all employees must complete. Process owners define detailed processes and regulations, which are rolled out via the
intranet or the communication platform to employees. General information about BCR Group’s Policies on Anti-Corruption Policy
and Code of Ethics is also made available to external stakeholders on our website.
G1-3 – PREVENTION AND DETECTION OF CORRUPTION AND BRIBERY
A corruption incident is defined as the abuse of entrusted public or business power, office, or resources for private gain, either by
elected government officials or by other private individuals. Bribery, a form of corruption, is defined as the act of receiving a
benefit, whether financial or non-financial, that alters the behaviour of the recipient. A bribery incident involves intentionally
offering, giving, receiving, or soliciting the benefit, directly or indirectly, or through a third party, to improperly influence a person
in the performance of a duty, to obtain or retain a benefit or any undue advantage, or to influence the actions of an official or other
person in charge of a public or business duty.
The ABC Program implemented in BCR Group is structured as to address the following 3 pillars: 1. prevention and deterrence; 2.
reporting, detection & investigation; 3. reporting & correction.
When an incident of bribery or corruption is suspected, the Compliance Function coordinates the investigation, with cooperation
from other functions, if the case (such as Internal Audit function, Security Experts, IT experts, experts from Erste Group
Compliance). This ensures that all allegations are investigated independently and comprehensively. The Compliance Division,
which operates separately from the chain of management, plays a crucial role in investigating these incidents according to the 3-
Lines-of-Defense Model. This model ensures that responsibility for compliance matters, including investigation of BCR has
established rigorous procedures to prevent, detect, and address allegations or incidents of corruption and bribery. These efforts
focus on ensuring compliance with financial sanctions, embargoes, securities compliance, and good conduct compliance, which
includes anti-bribery and anti-corruption agendas.
Regular risk-based monitoring activities /controls are conducted by Compliance Division (as 2nd level controls), actions which
ensure adherence to these procedures and raise awareness of compliance risks among all relevant staff. The management bodies of
BCR Group are informed on critical conflicts of interest, particularly those indicating corruption, which are also reported to the
National Bank of Romania. Such instances are reported to the B oard and Supervisory Board of Erste Group Bank AG as well.
Reports are submitted through Erste Group Conduct Unit within the Compliance function to Group Internal Audit, the
Management Board, and the Supervisory Board.
Compliance officers are provided with specific internal working instructions outlining procedures to prevent, detect and address
allegations or incidents of corruption and bribery. Investigations are carried out by the Compliance Division Monitoring Unit,
which operates independently from the chain of management, ensuring unbiased and thorough investigations.
BCR Compliance Division Monitoring Unit monitors the fulfillment of the e-learning completion and is responsible for
implementation of the e-learning and for escalating cases of non-completion. The overall process within the BCR Group
Compliance steering scope is the same as the IFRS consolidation scope.
People and Culture Division provides support for the implementation of the e-learning and provides regular completion reports to
the Compliance Division Moni toring Unit. For 2025, the completion rate for BCR own employees active at 31.12.2025, was 97.34%
for WBT training and 98.33% for local training (see table 'Anti-corruption and bribery training' for details).
BCR Antifraud Department provides a comprehensive and mandatory fraud prevention training to employees. This training
educates employees on common fraud schemes, red flags, preventive measures and reporting procedures, including internal fraud
awareness. It includes BCR Group’s legal/regulatory framework around fraud, addressing its Zero Tolerance Policy and elaboration
of all types of fraud. The training tackles techniques on how to detect fraud, strategies to prevent and how to report fraud. The
training is designed for both new and existing employees, with specific formats and frequencies to ensure comprehensive coverage.
New employees receive on-site fraud training available in both English and Romanian languages, conducted regularly at least once
a month.
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The following data includes the completion rates within BCR:
Anti-corruption and bribery training

| 2024 | 2025
Anti-corruption and bribery WBT training (Group E-learning Training) | All staff incl. Management roles | Out of which, Management roles including MB | All staff incl. Management roles | Out of which, Management roles including MB
Training coverage (%) | 98.45% | 97.91% | 100.00% | 100.00%
Total employees at end of period (#) | 4,919 | 431 | 4,809 | 411
Total employees registered in trainings (#) | 4,843 | 422 | 4,809 | 411
Training completion (%) | 96.43% | 92.18% | 97.34% | 91.73%
Total employees with trainings completed (#) | 4,670 | 389 | 4,681 | 377
Duration of web-based training | 1 hour | 1 hour | 1 hour | 1 hour
Frequency | Annually | Annually | Annually | Annually

Erste Group implements a comprehensive training framework designed to prevent corruption, bribery, and conflicts of interest.
The foundation of this framework is a mandatory, group‑wide web‑based training (WBT) on Conflicts of Interest (CoI) and
Anti‑Bribery & Corruption (ABC), which is also available in locally adapted versions. Training results are primarily based on the
completion of this group‑wide CoI and ABC WBT. BCR applies this training framework in full, adopting the content and
requirements 1:1, in line with Erste Group standards.
The training covers all relevant aspects around the different types of conflicts of interests, corruption and bribery, how they occur,
how they can be prevented and reported. It is based on BCR Group´s legal and regulatory framework and the group-wide CoI and
ABC Policy, which establishes a zero-tolerance approach towards any form of corruption and bribery. The WBT takes 1 hour, with
the theoretical input lasting 45 minutes and the quiz 15 minutes.
Additional training courses vary in duration and assignment logic and are adapted to the specific content and targeted audience,
based on entity risks.
To this extent BCR is rolling out on annual basis a local e-learning addressed to all staff, including management, on the topics of
Ethics/Conflicts of Interests /Whistleblowing/Anti-bribery and Corruption.

| 2024 | 2025
Anti-corruption and bribery training (BCR Local E-learning Training) | All staff incl. management roles | All staff incl. management roles
Training coverage (%) | 99.51% | 99.69%
Total employees at end of period (#) | 4,919 | 4,809
Total employees registered in trainings(#) | 4,895 | 4,794
Training completion (%) | 98.51% | 98.33%
Total employees with trainings completed (#) | 4,822 | 4,714
Web-based training | 1 hour | 1 hour
Frequency | annually | annually

The training sessions started in March 2025 and availability ended in December 2025. The training covered all relevant topics
within the framework (Code of Ethics, ABC Policy and Whistleblowing). The learning session is finalized with a test that contains
questions from the information material.
Beside quantitative monitoring process the qualitative indicators are followed, meaning that each employee who attends the
training session must obtain a pass rate of minimum 70%. For the implementation of the actions related to these training sessions
no significant Capex or Opex was identified as needed for both reporting year and for medium term.
G1-4 – INCIDENTS OF CORRUPTION OR BRIBERY
Incidents of corruption or bribery can undermine its integrity and ethical standards and at BCR such incidents are treated with the
utmost seriousness, in accordance with the BCR`s Policy on CoI and ABC; BCR Group maintains a strict zero tolerance approach
towards any form of bribery or corruption.
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There have been zero convictions for violations of anti-corruption and anti-bribery laws, and the number of fines for such violations
is zero for year 2025. This mirrors the situation from the previous year, where both convictions and fines were also zero.

Subtopic | List of key-actions | Policy
G1-Corruption and bribery - prevention and detection including training | Training programmes to prevent and detect corruption and bribery | Code of Ethics and BCR Anticorruption Policy

For the implementation of the programs indicated in the table above no significant Capex or Opex was identified as needed for both
the reporting year and for medium term.
Training programmes to prevent and detect corruption and bribery
BCR Group employees have completed in 2025 the Erste Group web-based training ABC as per completion rate mentioned under
section 'G1-3 - Prevention and detection of corruption and bribery' above. In addition, BCR Group has implemented local training
programs tailored to the local context and target audience, programs that are addressed to all BCR Group employees. Furthermore,
the BCR Management Body participates in dedicated sessions as part of the annual training programs.
An additional implementation of a group-wide compliance platform is in progress. This platform is designed to serve as a central
hub for knowledge, sharing on key compliance topics, including conflicts of interest, the Policy on CoI and ABC, relevant points of
contact and links to WBT resources. Its objective is to enhance the accessibility and dissemination of essential compliance
information across the organization.
The progress of these actions is monitored through evaluations of the WBT, data analysis of the reporting tool, checks and risk
assessments (see 'G1-3 - Prevention and detection of corruption and bribery'). BCR Compliance, with support from the People and
Culture Division, monitors the completion rates of the e-learning programs and escalates cases of non-completion. By
implementing these targeted training programs and the compliance platform, both Erste Group and BCR Group effectively take
measures to avert the risks identified in the Double Materiality Assessment 2025.
Supervisory Board Chairmen,
Manfred WIMMER
Banca Comercială Română S.A.
Consolidated and Separate Financial Statements
(The Group and the Parent Bank)
Prepared in Accordance with
International Financial Reporting Standards
as adopted by the European Union
LEI Code: 549300ORLU6LN5YD8X90
31 December 2025
Content of the consolidated and separated financial statements

Statements of profit or loss | 1
Statements of comprehensive income | 2
Statements of financial position | 3
Statements of changes in equity | 4
Statements of cash flows | 6
Notes to the group financial statements of BCR Group | 7
Corporate information | 7
Chapter 1 – Material accounting policies information | 7
Chapter 2 - Performance/ return | 10
1.Net interest income | 10
2.Net fee and commission income | 11
3.Dividend income | 12
4.Net trading result | 12
5.Rental income from investment properties and other operating leases | 13
6.General administrative expenses | 13
7.Gains/losses from derecognition of financial assets measured at amortized cost | 15
8.Other gains/losses from derecognition of financial instruments not measured at fair value through profit or loss (FVOCI) | 15
9.Net impairment loss on financial instruments | 15
10.Reconciliation of the net impairment result to the changes in the credit loss allowances (CLA) | 16
11.Other operating result | 16
12.Taxes on income | 17
13.Dividends paid | 20
Chapter 3 – Financial instruments – Material accounting policies | 21
Chapter 4 – Financial instruments held at amortized cost | 26
14.Cash and cash equivalents | 26
15.Financial assets at amortized cost | 26
16.Trade and other receivables | 31
17.Financial liabilities measured at amortized cost | 32
Chapter 5 – Financial instruments at fair value | 35
18.Derivatives financial instruments held for trading | 35
19.Other financial assets held for trading | 36
20.Non-trading financial assets mandatorily at fair value through profit or loss | 36
21.Financial assets at fair value through other comprehensive income | 36
Chapter 6 – Financial instruments – other disclosure matters | 38
22.Securities | 38
23.Fair value of financial assets and liabilities | 38
24.Encumbered assets for repo transactions | 45
25.Transfers of financial assets | 45
Chapter 7 – Risk and capital management | 47
26.Risk management | 47
27.Own funds and capital requirements | 50
28.Credit Risk | 51
29.Market risk | 95
30.Liquidity risk | 97
Chapter 8 – Non-current assets and other investments | 101
31.Property, equipment and investment properties | 101
32.Fair values of non-financial assets | 106
33.Intangible assets | 107
34.Other assets and investment in subsidiaries | 110
35.Leases | 110
Chapter 9 – Other liabilities and provisions | 114
36.Other liabilities | 114
37.Provisions | 114
38.Litigations and contingent liabilities | 118
Chapter 10 – Capital instruments, equity and reserves | 120
39.Total equity | 120

Chapter 11 – Scope of consolidation | 121
40.Subsidiaries | 121
41.Investments in joint ventures and associates | 123
Chapter 12 – Other disclosure matters | 125
42.Segment reporting | 125
43.Return on assets and turnover information | 134
44.Related-party transactions and principal shareholders | 134
45.Audit fees and other services | 137
46.Split between current and non-current assets and liabilities | 138
47.Events after the balance sheet date | 140

Independent auditors’ report to the shareholders of Banca Comercială Română S.A.
1
STATEMENTS OF PROFIT OR LOSS
Consolidated and Separate for the year ended 31 December 2025

Statements of profit or loss

| Notes | Group | Bank
in RON thousands |  | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Net interest income | 1 | 4,746,338 | 4,400,976 | 4,549,187 | 4,253,358
Interest income |  | 6,914,594 | 6,692,846 | 6,905,858 | 6,720,942
Other similar income |  | 518,841 | 242,463 | 357,939 | 77,352
Interest expenses |  | -2,459,089 | -2,504,410 | -2,487,045 | -2,515,429
Other similar expense |  | -228,008 | -29,923 | -227,565 | -29,507
Net fee and commission income | 2 | 1,214,169 | 1,128,180 | 1,148,886 | 1,071,921
Fee and commission income |  | 1,601,850 | 1,450,865 | 1,528,033 | 1,387,671
Fee and commission expense |  | -387,681 | -322,685 | -379,147 | -315,750
Dividend income | 3 | 6,581 | 6,192 | 10,124 | 74,078
Net trading result | 4 | 544,422 | 487,915 | 544,422 | 487,871
Gains/(losses) from non-trading financial instruments mandatorily measured at fair value through profit or loss |  | 19,736 | 24,723 | 19,736 | 24,723
Foreign currency translation |  | -8,723 | 4,371 | -21,254 | -2,074
Net result from equity method investments | 41 | -4,240 | 8,831 | - | -
Rental income from investment properties and other operating leases | 5 | 14,237 | 34,543 | 5,266 | 5,346
Personnel expenses | 6 | -1,110,961 | -1,111,044 | -1,042,600 | -1,047,484
Other administrative expenses | 6 | -1,013,577 | -900,699 | -997,567 | -890,171
Depreciation and amortisation | 6 | -270,946 | -259,105 | -258,129 | -241,797
Gains/(losses) from derecognition of financial assets measured at amortized cost | 7 | - | -26,881 | - | -26,881
Other gains/(losses) from derecognition of financial instruments not measured at fair value through profit or loss | 8 | -1,307 | -4,127 | -1,307 | -4,127
Net impairment gain/ (losses) on financial instruments | 9,10 | -252,408 | -106,342 | -215,199 | -66,482
Other operating result, out of which | 11 | 60,533 | -400,038 | 54,159 | -354,175
Other operating income |  | 702,611 | 84,752 | 612,161 | 50,890
Other operating expense, out of which |  | -642,078 | -484,790 | -558,002 | -405,065
Supplementary tax for credit institutions |  | -316,070 | -182,460 | -307,637 | -181,702
Pre-tax result from continuing operations |  | 3,943,854 | 3,287,495 | 3,795,724 | 3,284,106
Taxes on income | 12 | -623,763 | -520,072 | -612,089 | -502,354
Net result for the year |  | 3,320,091 | 2,767,423 | 3,183,635 | 2,781,752
Net result attributable to non-controlling interests |  | 20 | 8 | - | -
Net result attributable to owners of the parent |  | 3,320,071 | 2,767,415 | 3,183,635 | 2,781,752

AUTHORIZED PERSON,AUTHORIZED PERSON,
Signature Signature
Executive Vice-President, Director Accounting Division,
Elke Meier Gina Badea

2
STATEMENTS OF COMPREHENSIVE INCOME
Consolidated and Separate for the year ended 31 December 2025

Statements of comprehensive income

| Notes | Group | Bank
in RON thousands |  | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Net result for the year |  | 3,320,091 | 2,767,423 | 3,183,635 | 2,781,752
Actuarial gains/(losses) on defined benefit pension plans | 37 | -17,503 | 5,314 | -17,089 | 5,179
Deferred taxes relating to items that will not be reclassified | 12 | 2,771 | -820 | 2,734 | -829
Total items that will not be reclassified to profit or loss |  | -14,732 | 4,494 | -14,355 | 4,350
Items that may be reclassified to profit or loss |  |  |  |  |
Debt instruments at fair value through other comprehensive income |  | 218,228 | -19,063 | 218,228 | -15,307
Currency translation reserve |  | - | 3,402 | - | -
Reclassification adjustments |  | 38 | - | - | -
Deferred taxes relating to items that may be reclassified | 12 | -34,916 | 2,899 | -34,916 | 2,449
Total items that may be reclassified to profit or loss |  | 183,350 | -12,762 | 183,312 | -12,858
Total other comprehensive income |  | 168,618 | -8,268 | 168,957 | -8,508
Total comprehensive income |  | 3,488,709 | 2,759,155 | 3,352,592 | 2,773,244
Total comprehensive income attributable to non-controlling interests |  | 20 | 8 | - | -
Total comprehensive income attributable to owners of the parent |  | 3,488,689 | 2,759,147 | 3,352,592 | 2,773,244

AUTHORIZED PERSON ,AUTHORIZED PERSON,
Signature Signature
Executive Vice-President, Director Accounting Division,
Elke Meier Gina Badea
3
STATEMENTS OF FINANCIAL POSITION
Consolidated and Separate as at 31 December 2025

Statements of financial position

|  | Group | Bank
in RON thousands | Notes | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Assets |  |  |  |  |
Cash and cash equivalents | 14 | 11,440,918 | 10,642,241 | 11,435,554 | 10,596,154
Financial assets held for trading |  | 3,329,764 | 1,912,779 | 3,329,764 | 1,912,779
Derivative financial instruments held for trading | 18 | 102,599 | 187,806 | 102,599 | 187,806
Debt securities held for trading | 19,23 | 3,227,165 | 1,724,973 | 3,227,165 | 1,724,973
thereof pledged as collateral | 24, 25 | 620,510 | 9,898 | 620,510 | 9,898
Non-trading financial assets mandatorily at fair value through profit or loss | 20 | 97,614 | 87,862 | 97,614 | 87,862
Equity instruments |  | 92,124 | 75,345 | 92,124 | 75,345
Debt securities |  | 5,490 | 12,517 | 5,490 | 12,517
Financial assets at fair value through other comprehensive income | 21, 23 | 13,290,491 | 12,767,715 | 13,290,491 | 12,767,715
Debt securities | 21, 23 | 13,290,491 | 12,767,715 | 13,290,491 | 12,767,715
thereof pledged as collateral | 24, 25 | 644,802 | 20,797 | 1,166,685 | 20,797
Financial assets at amortized cost | 15 | 98,155,165 | 90,038,137 | 100,365,988 | 91,972,536
Debt securities | 15.1, 22, 23 | 23,248,722 | 20,623,315 | 23,115,245 | 20,497,053
thereof pledged as collateral | 24, 25 | 100,925 | 322,960 | 100,925 | 855,579
Loans and advances to banks | 15.2 | 5,572,108 | 6,004,729 | 5,566,874 | 5,960,826
Loans and advances to customers | 15.3 | 69,334,335 | 63,410,093 | 71,683,869 | 65,514,657
Finance lease receivables | 35 | 2,678,181 | 2,321,385 | 30,375 | 15,043
Property and equipment | 31 | 1,135,557 | 1,029,795 | 1,107,182 | 902,686
Investment property | 31 | 15,343 | 112,198 | 15,342 | 112,198
Intangible assets | 33 | 551,266 | 496,946 | 515,201 | 468,484
Investments in joint ventures and associates | 41 | 34,599 | 38,838 | 25,961 | 25,961
Current tax assets | 12 | 1,068 | 139 | - | -
Deferred tax assets | 12 | 2,445 | 92,230 | 394 | 90,567
Assets held for sale and disposal group | 46 | 15,204 | 729 | 15,204 | 729
Trade and other receivables | 16 | 943,541 | 1,002,936 | 939,449 | 995,338
Investments in subsidiaries | 34,40 | - | - | 925,316 | 613,371
Other assets | 34 | 213,191 | 261,005 | 127,067 | 115,272
Total assets |  | 131,904,347 | 120,804,935 | 132,220,902 | 120,676,695
Liabilities and Equity |  |  |  |  |
Financial liabilities held for trading |  | 165,342 | 133,740 | 165,342 | 133,740
Derivative financial instruments held for trading | 18 | 165,342 | 133,740 | 165,342 | 133,740
Financial liabilities measured at amortized cost | 17 | 112,153,887 | 104,405,296 | 112,668,813 | 104,748,753
Deposits from banks | 17.1 | 2,740,235 | 1,174,726 | 3,262,252 | 1,686,012
Borrowings and financing lines | 17.2 | 439,197 | 533,268 | 108,463 | 127,307
Deposits from customers | 17.4 | 93,084,106 | 91,007,840 | 93,460,301 | 91,281,395
Debt securities issued | 17.3 | 14,246,361 | 10,407,030 | 14,246,361 | 10,407,030
Other financial liabilities | 17.5 | 1,643,988 | 1,282,432 | 1,591,436 | 1,247,009
Lease liabilities | 35 | 591,782 | 500,390 | 590,344 | 498,276
Provisions | 37 | 490,048 | 788,313 | 477,507 | 768,162
Current tax liabilities | 12 | 58,994 | 42,508 | 54,373 | 38,260
Deferred tax liabilities | 12 | 22,130 | 25,177 | - | -
Other liabilities | 36 | 592,575 | 919,357 | 547,340 | 475,339
Total liabilities |  | 114,074,758 | 106,814,781 | 114,503,719 | 106,662,530
Total equity | 39 | 17,829,589 | 13,990,154 | 17,717,183 | 14,014,165
Attributable to non-controlling interest |  | 83 | 64 | - | -
Attributable to owners of the parent |  | 17,829,506 | 13,990,090 | 17,717,183 | 14,014,165
Share capital |  | 2,952,565 | 2,952,565 | 2,952,565 | 2,952,565
Additional equity instruments |  | 2,482,035 | 741,555 | 2,482,035 | 741,555
Retained earnings |  | 10,325,096 | 8,430,294 | 10,212,878 | 8,454,512
Other reserves |  | 2,069,810 | 1,865,676 | 2,069,705 | 1,865,533
Total liabilities and equity |  | 131,904,347 | 120,804,935 | 132,220,902 | 120,676,695

AUTHORIZED PERSON,AUTHORIZED PERSON,
Signature Signature
Executive Vice-President, Director Accounting Division,
Elke Meier Gina Badea
4
STATEMENTS OF CHANGES IN EQUITY
Consolidated and Separate for the year ended 31 December 2025
Statements of changes in equity

|  |  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Share capital | Share premium | Additional equity instruments (1) | Retained earnings | Other reserves (2) | Fair value reserve | Currency translation reserve | Actuarial gains/(losses) on defined benefit pension plans | Deferred tax | Equity attributable to owners of the parent | Equity attributable to non- controlling interests | Total
Total equity as of 01.01.2025 | 2,952,565 | 395,483 | 741,555 | 8,430,294 | 1,369,128 | 53,765 | - | 66,511 | -19,211 | 13,990,090 | 64 | 13,990,154
Dividends paid | - | - | - | -1,389,876 | - | - | - | - | - | -1,389,876 | - | -1,389,876
Capital increases | - | - | 1,740,480 | - | - | - | - | - | - | 1,740,480 | - | 1,740,480
Reclassification among components of equity | - | - | - | -35,393 | 35,393 | - | - | - | - | - | - | -
Other changes | - | - | - | - | 122 | - | - | - | - | 122 | -1 | 121
Total comprehensive income, of which | - | - | - | 3,320,071 | 38 | 218,228 | - | -17,503 | -32,145 | 3,488,689 | 20 | 3,488,709
Net result for the year | - | - | - | 3,320,071 | - | - | - | - | - | 3,320,071 | 20 | 3,320,091
Other comprehensive income | - | - | - | - | 38 | 218,228 | - | -17,503 | -32,145 | 168,618 | - | 168,618
Total equity as of 31.12.2025 | 2,952,565 | 395,483 | 2,482,035 | 10,325,096 | 1,404,682 | 271,993 | - | 49,008 | -51,356 | 17,829,506 | 83 | 17,829,589

(1) Capital increases include AT1 instruments issued as described in Note 39.
(2) Other reserves include legal reserves and general banking risk reserve described Note 39.

|  |  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Share capital | Share premium | Additional equity instruments (1) | Retained earnings | Other reserves (2) | Fair value reserve | Currency translation reserve | Actuarial gains/(losses) on defined benefit pension plans | Deferred tax | Equity attributable to owners of the parent | Equity attributable to non- controlling interests | Total
Total equity as of 01.01.2024 | 2,952,565 | 395,483 | 741,555 | 6,961,940 | 1,316,622 | 72,828 | -3,402 | 61,197 | -21,290 | 12,477,498 | 56 | 12,477,554
Dividends paid | - | - | - | -1,243,706 | - | - | - | - | - | -1,243,706 | - | -1,243,706
Reclassification among components of equity | - | - | - | -53,145 | 53,145 | - | - | - | - | - | - | -
Other changes | - | - | - | -2,210 | -639 | - | - | - | - | -2,849 | - | -2,849
Total comprehensive income, of which | - | - | - | 2,767,415 | - | -19,063 | 3,402 | 5,314 | 2,079 | 2,759,147 | 8 | 2,759,155
Net result for the year | - | - | - | 2,767,415 | - | - | - | - | - | 2,767,415 | 8 | 2,767,423
Other comprehensive income | - | - | - | - | - | -19,063 | 3,402 | 5,314 | 2,079 | -8,268 | - | -8,268
Total equity as of 31.12.2024 | 2,952,565 | 395,483 | 741,555 | 8,430,294 | 1,369,128 | 53,765 | - | 66,511 | -19,211 | 13,990,090 | 64 | 13,990,154

(1) Capital increases include AT1 instruments issued as described in Note 39.
(2) Other reserves include legal reserves and general banking risk reserve described Note 39.
5
STATEMENTS OF CHANGES IN EQUITY
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Share capital | Share premium | Additional equity instruments (1) | Retained earnings | Other reserves (2) | Fair value reserve | Actuarial gains/ (losses) on defined benefit pension plans | Deferred tax | Total
Total equity as of 01.01.2025 | 2,952,565 | 395,483 | 741,555 | 8,454,512 | 1,369,128 | 53,767 | 66,376 | -19,221 | 14,014,165
Dividends paid | - | - | - | -1,389,876 | - | - | - | - | -1,389,876
Capital increases | - | - | 1,740,480 | - | - | - | - | - | 1,740,480
Reclassification among components of equity | - | - | - | -35,393 | 35,393 | - | - | - | -
Other changes | - | - | - | - | -178 | - | - | - | -178
Total comprehensive income, of which | - | - | - | 3,183,635 | - | 218,228 | -17,089 | -32,182 | 3,352,592
Net result for the year | - | - | - | 3,183,635 | - | - | - | - | 3,183,635
Other comprehensive income | - | - | - | - | - | 218,228 | -17,089 | -32,182 | 168,957
Total equity as of 31.12.2025 | 2,952,565 | 395,483 | 2,482,035 | 10,212,878 | 1,404,343 | 271,995 | 49,287 | -51,403 | 17,717,183

(1) Capital increases include AT1 instruments issued as described in Note 39.
(2) Other reserves include legal reserves and general banking risk reserve described Note 39.

|  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Share capital | Share premium | Additional equity instruments (1) | Retained earnings | Other reserves (2) | Fair value reserve | Actuarial gains/ (losses) on defined benefit pension plans | Deferred tax | Total
Total equity as of 01.01.2024 | 2,952,565 | 395,483 | 741,555 | 6,969,611 | 1,316,622 | 69,074 | 61,197 | -20,841 | 12,485,266
Dividends paid | - | - | - | -1,243,706 | - | - | - | - | -1,243,706
Reclassification among components of equity | - | - | - | -53,145 | 53,145 | - | - | - | -
Changes in scope of consolidation and ownership interest | - | - | - | - | -639 | - | - | - | -639
Total comprehensive income, of which | - | - | - | 2,781,752 | - | -15,307 | 5,179 | 1,620 | 2,773,244
Net result for the year | - | - | - | 2,781,752 | - | - | - | - | 2,781,752
Other comprehensive income | - | - | - | - | - | -15,307 | 5,179 | 1,620 | -8,508
Total equity as of 31.12.2024 | 2,952,565 | 395,483 | 741,555 | 8,454,512 | 1,369,128 | 53,767 | 66,376 | -19,221 | 14,014,165

(1) Capital increases include AT1 instruments issued as described in Note 39.
(2) Other reserves include legal reserves and general banking risk reserve described Note 39.
6
CASH FLOWS STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Statements of cash flows

|  | Group | Bank
in RON thousands | Notes | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Net result for the year |  | 3,320,091 | 2,767,423 | 3,183,635 | 2,781,752
Non-cash adjustments for items in net result for the period |  |  |  |  |
Depreciation, amortisation of assets | 6 | 270,946 | 259,105 | 258,129 | 241,797
Allocation and release of impairment of loans | 9 | 264,734 | 151,197 | 217,176 | 92,061
Gains/(losses) from the sale of property and equipment and investment properties | 11 | 3,356 | -8,840 | -7,548 | -12,470
Gain on disposal of non-current assets held for sale and disposal group | 11 | -1,808 | -5,747 | -1,808 | -5,145
Other provisions | 11 | -221,627 | -16,762 | -212,816 | -18,233
Net impairment of subsidiaries | 11 | - | - | -352,282 | -25,266
Impairment tangible and intangible assets | 11 | 8,106 | 27,309 | 4,098 | 9,568
Impairment of assets held for sale and other assets | 11 | 6,293 | 29,509 | 3,855 | 30,758
Current tax not paid | 12 | 568,887 | 488,605 | 554,098 | 476,066
Expenses with supplementary tax for credit institutions |  | 316,070 | 182,460 | 307,637 | 181,702
Deferred tax | 12 | 54,958 | 31,467 | 57,991 | 26,288
Other adjustments |  | -225,647 | -94,182 | 198,877 | -59,675
Adjustments for items in net profit/(loss) for the year |  | -4,752,944 | -4,407,168 | -4,559,337 | -4,327,436
Interest income from operating activities |  | -6,273,466 | -6,007,993 | -6,112,121 | -5,877,837
Interest expense for operating activities |  | 1,951,161 | 1,801,407 | 1,993,547 | 1,836,284
Interest income from investing activities |  | -1,159,995 | -927,316 | -1,151,702 | -920,457
Interest expense for financing activities |  | 735,937 | 732,926 | 721,063 | 708,652
Dividend income from investing activities | 3 | -6,581 | -6,192 | -10,124 | -74,078
Changes in assets and liabilities from operating activities after adjustment for non-cash components |  |  |  |  |
Financial assets - held for trading | 19 | -1,502,192 | -1,159,563 | -1,502,192 | -1,159,563
Financial assets at fair value through other comprehensive income | 21 | -305,283 | -2,649,139 | -305,283 | -2,649,104
Financial assets at amortized cost |  | -6,232,335 | -13,163,420 | -6,369,454 | -13,162,297
Loans and advances to banks | 15 | 867,944 | -3,231,699 | 829,275 | -3,171,122
Loans and advances to customers | 15 | -6,736,679 | -9,606,457 | -7,184,580 | -9,993,512
Finance lease receivables | 35 | -363,600 | -325,264 | -14,149 | 2,337
Supplementary tax for credit institutions paid |  | -253,895 | -133,907 | -245,648 | -133,309
Other assets from operating activities | 34 | 36,253 | 58,277 | 2,813 | 50,396
Financial liabilities measured at amortized cost | 17 | 4,081,054 | 11,061,355 | 4,136,316 | 10,959,001
Deposits from banks | 17 | 1,618,936 | 240,585 | 1,589,744 | 116,152
Deposits from customers | 17 | 2,100,563 | 12,476,497 | 2,202,144 | 12,511,285
Other financial liabilities | 18 | 361,555 | -1,655,727 | 344,428 | -1,668,436
Income tax paid |  | -551,351 | -526,717 | -538,136 | -520,939
Other liabilities from operating activities | 36 | 45,043 | 41,671 | 79,220 | 33,459
Interest received from operating activities |  | 6,509,265 | 6,390,970 | 6,428,993 | 6,326,847
Interest paid for operating activities |  | -1,995,669 | -1,784,145 | -2,022,121 | -1,798,805
Cash flow from operating activities |  | -557,695 | -2,460,242 | -683,787 | -2,662,547
Proceeds of disposal: |  | 2,620,603 | 2,144,608 | 2,600,357 | 2,098,109
Debt securities at amortized cost | 17 | 2,583,109 | 1,990,682 | 2,583,109 | 1,990,682
Property and equipment, intangible assets,investment properties and assets held for sale | 31, 46 | 37,494 | 97,210 | 17,248 | 50,711
Assets held for sale and disposal group | 46 | - | 56,716 | - | 56,716
Acquisition of: |  | -5,379,127 | -5,219,382 | -5,362,717 | -5,200,781
Debt securities at amortized cost | 15 | -5,084,682 | -4,951,396 | -5,084,682 | -4,951,396
Property and equipment, intangible assets,investment properties and assets held for sale | 31, 46 | -294,445 | -267,986 | -278,035 | -249,385
Interest received from investing activities |  | 1,042,270 | 758,622 | 1,033,977 | 758,143
Dividends received from investing activities | 3 | 6,581 | 6,192 | 10,124 | 74,078
Cash flow from investing activities |  | -1,709,673 | -2,309,960 | -1,718,259 | -2,270,451
Additional equity instruments | 39 | 1,740,480 | - | 1,740,480 | -
Capital decrease |  | - | - | 40,336 | -
Dividends paid to equity holders of the parent | 13 | -1,279,455 | -1,175,306 | -1,279,455 | -1,175,306
Dividends paid to non-controlling interests | 13 | -1,391 | -1,295 | -1,391 | -1,295
Repayment of principal of lease liabilities (IFRS 16) | 35 | -117,184 | -116,257 | -106,668 | -100,708
Debt securities issued | 17 | 3,705,250 | 223,835 | 3,705,250 | 223,835
AT1 coupon | 13 | -109,030 | -67,105 | -109,030 | -67,105
Outflows from other financing activities | 17 | -127,288 | -149,302 | -27,012 | -33,538
Interest paid for financing activities |  | -745,337 | -732,926 | -721,063 | -708,652
Debt securities issued |  | -745,337 | -732,926 | -721,063 | -708,652
Cash flow from financing activities |  | 3,066,045 | -2,018,356 | 3,241,447 | -1,862,769
Cash and cash equivalents at beginning of period | 14 | 10,642,241 | 16,763,792 | 10,596,153 | 16,724,913
Cash flow from operating activities |  | -557,695 | -2,460,242 | -683,787 | -2,662,547
Cash flow from investing activities |  | -1,709,673 | -2,309,960 | -1,718,259 | -2,270,451
Cash flow from financing activities |  | 3,066,045 | -2,018,356 | 3,241,447 | -1,862,769
Other non-cash movements in the statement of financial positions |  | - | 667,007 | - | 667,007
Cash and cash equivalents at the end of the period | 14 | 11,440,918 | 10,642,241 | 11,435,554 | 10,596,153

7
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Notes to the group financial statements of BCR Group
Corporate information
Banca Comercială Română S.A. (“the Bank” or “BCR”), together with its subsidiaries (“the Group”), is one of Romania’s
leading financial institutions, offering a comprehensive range of banking and financial services tailored to individuals,
businesses, and institutional clients. With a commitment to innovation, accessibility, and sustainability, the Bank’s
expertise spans retail banking, corporate & investment banking, treasury, capital markets, leasing, and private pensions,
delivering solutions that support financial education and long‑term prosperity. As a result of the privatization process
organized by the government of Romania, Erste Bank der oesterreichischen Sparkassen AG (‘Erste Bank‘) purchased
61.88% of the share capital of the Bank pursuant to a share purchase agreement dated 21 December 2005. Until 31
December 2025, Erste Bank purchased further 38.0116% from other shareholders (including employees) of the Bank,
adding up to 99.8916%. Erste Bank is the direct parent of the Bank. Erste Bank is owned 100% by Erste Group Bank AG.
The ultimate parent of the Group is Erste Group Bank AG.
The Group provides day-to-day banking services and other financial services to governmental institutions, corporate and
individual clients operating in Romania and abroad. These services include: accounts opening, domestic and international
payments, foreign exchange transactions, working capital finance, medium and long-term facilities, retail loans, finance
micro and small enterprises, bank guarantees, letters of credit and through subsidiaries also leasing, brokerage, financial
consultancy services and asset management.
Banca Comercială Română S.A. is incorporated and domiciled in Romania. Its registered office is at 15D, Soseaua
Orhideelor, The Bridge -Building 1, 2nd floor, Bucharest, Romania.
The consolidated financial statements for the year ended 31 December 2025 were pre-approved by the Management Board
on 18 March 2026 and Supervisory Board on 27 March 2026.
The financial statements are audited by PricewaterhouseCoopers Audit SRL starting with the financial year ended 31
December 2017.
Chapter 1 – Material accounting policies information
The accounting policies apply to both the consolidated (‘Group’) and separate financial statements of the Bank.
a) Basis of preparation
The separate and consolidated financial statements of the Group have been prepared in accordance with applicable
International Financial Reporting Standards (IFRS) as adopted by the European Union on the basis of IAS Regulation (EC)
No. 1606/2002 and in accordance with NBR Order 27/2010 with further amendments.
The Bank and its subsidiaries which are incorporated in Romania maintain their books of account and prepare their
statutory financial statements in accordance with Romanian Accounting Regulations and in the case of the Bank and its
subsidiaries ‘BCR Leasing IFN SA‘ and ‘Banca pentru Locuinte‘ in accordance with IFRS and Romanian Banking
Regulations. The foreign subsidiaries maintain their books of account and prepare their statutory financial statements in
their presentation currencies and in accordance with the regulations of the countries in which they operate. Subsidiaries
included in scope of consolidation are presented in Note 40.
The Bank’s separate and Group’s consolidated financial statements are presented in Romanian Lei (‘RON‘), and all values
are rounded to the nearest RON thousands, except when otherwise indicated. The tables in these Financial Statements may
contain rounding differences.
The Bank’s separate and consolidated financial statements have been prepared on a going concern basis.
The Group presents its statements of financial position in decreasing order of liquidity.
8
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

b) Accounting and measurement methods
Foreign currency translation
The financial statements are presented in RON, which is the Bank’s functional and presentation currency. Each entity in
the Group determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency.
i. Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency at the rate of exchange applicable at the
date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated into the functional currency at the rate of
exchange applicable at the statements of financial position date. Differences are taken to ‘Foreign currency translation’ in
the profit or loss except for Financial assets at fair value through other comprehensive income which are booked to Fair
value Reserves and Non-trading financial assets mandatorily at fair value through profit or loss which are booked to Gains/
(losses) from non-trading financial instruments mandatorily measured at fair value through profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was determined.
ii. Group companies
As at the reporting date, the assets and liabilities of foreign subsidiaries are translated into the Bank’s presentation
currency (RON) at the National Bank of Romania (NBR) rate of exchange ruling at the statements of financial position
date, and their profits or losses are translated at the average NBR exchange rates for the year. Exchange differences arising
on translation are taken directly to a separate component of equity ‘Currency translation reserve’. On disposal of a foreign
entity, the deferred cumulative amount recognized in equity relating to that particular foreign operation is recognized in
the statements of other comprehensive income in ‘Other operating result’.
c) Significant accounting judgments, assumptions and estimate
The consolidated and separate financial statements contain amounts that have been determined on the basis of judgments
and by the use of estimates and assumptions. The estimates and assumptions used are based on historical experience and
other factors, such as planning as well as expectations and forecasts of future events that are currently deemed to be
reasonable. As a consequence of the uncertainty associated with these assumptions and estimates, actual results could in
future periods lead to adjustments in the carrying amounts of the related assets or liabilities. The most significant uses of
judgments, assumptions and estimates are described in the notes of the respective assets and liabilities and relate in
particular to:
• Taxes on income and deferred tax assets (Note 12 - Taxes on income);
• Impairment of financial instruments (Chapter Financial instruments – Material accounting policies, Note 28
Credit risk).
d) Application of amended and new IFRS/IAS New Accounting Pronouncements
Effective Standards and Interpretations
The accounting policies adopted are consistent with those used in the previous financial year.
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability. The
amendments to IAS 21 were issued in August 2023 and become effective for annual periods beginning on or after 1 January
2025. The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange
rate when it is not. Application of these amendments had no significant impact on the Group’s financial statements.
As regards new standards and interpretations and their amendments, only those that are relevant for the business of the
Group are listed below.
9
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Adoption of New or Revised Standards and Interpretations
The standards and amendments set out below have been issued by the IASB but are not yet effective. They have been
endorsed by the EU with the exception of IFRS 19.
IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 was issued in April 2024 and become effective
for annual periods beginning on or after 1 January 2027. The standard replaces IAS 1. It sets out requirements for the
presentation and disclosure of information in general purpose financial statements to help ensure they provide relevant
information that faithfully represents an entity’s assets, liabilities, equity, income and expenses.
Application of IFRS 18 will result in adjustments in the structure of the consolidated statement of income of the Group
driven by a new mandatory subtotal ’Operating profit or loss’. New disclosures in the area of management-defined
performance measures will be provided.
Amendments to IFRS 9 and IFRS 7: Amendments to the Classification and Measurement of Financial Instruments.
The amendments to IFRS 7 and IFRS 9 were issued in May 2024 and become effective for annual periods beginning on or
after 1 January 2026.
The amendments to IFRS 9 permit an entity to deem a financial liability that will be settled using an electronic payment
system to be discharged before the settlement date. BCR Group will not make use of the option to deem a financial liability
that will be settled using an electronic payment system to be discharged before the settlement date.
Further, they bring clarifications for classification of financial assets in the areas of contractual terms which are consistent
with a basic lending agreement, assets with non-recourse features and contractually linked instruments.
The amendments to IFRS 7 bring new disclosure requirements for investment in equity instruments measured at fair value
through other comprehensive income and for contractual terms that could change the timing or amount of contractual
cash flows.
The amendments to IFRS 9 will result in a different way of SPPI assessment with period starting 1st of January 2026, for
financial assets whose interest is adjusted based on meeting certain ESG-linked targets by the borrowers. Group will no
longer assess them based on whether the effect of adjustments is de-minimis but whether the adjusted cash flows could be
significantly different from the contractual cash flows without such an ESG-linked feature. Other amendments to IFRS 9
are not expected to have a significant impact on the Group’s financial statements. Amendments to IFRS 7 will result in new
disclosures.
Annual Improvements Volume 11. In July 2024, the IASB issued a set of amendments to various standards. The
amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 are effective for annual periods beginning on or after 1 January
2026. Application of these amendments is not expected to have a significant impact on the Group’s financial statements.
IFRS 19 Subsidiaries without Public Accountability: Disclosures (Issued on 9 May 2024 and effective for annual periods
beginning on or after 1 January 2027). IFRS 19 permits eligible subsidiaries to use IFRS Accounting Standards with
reduced disclosures. The Group is not eligible to apply the reduced disclosure requirements introduced by this standard.
Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (Issued on 18 December 2024
and effective from 1 January 2026). The IASB has made targeted amendments to IFRS 9, Financial Instruments, and IFRS
7, Financial Instruments: Disclosures to help companies better report the financial effects of nature-dependent electricity
contracts, which are often structured as power purchase agreements (PPAs). Current accounting requirements may not
adequately capture how these contracts affect a company’s performance. The amendments include:
(a) clarifying the application of the ‘own-use’ requirements;
(b) relaxing certain hedge accounting requirements if these contracts are used as hedging instruments; and
(c) adding new disclosure requirements to enable investors to understand the effect of these contracts on financial
performance and cash flows.
Application of these amendments is not expected to have an impact on the Group’s financial statements.
10
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 2 - Performance/ return
1. Net interest income
Net interest income is broken down into line items of ‘interest income’, ‘other similar income’, ‘interest expenses’ and
‘other similar expenses’. The distinguishing factor is whether the effective interest rate (EIR) method is mandatorily
applied for recognition of interest income or expense in accordance with IFRS 9.
‘Interest income’ relates to interest revenue from financial assets measured at amortized cost and at fair value through
other comprehensive income. It is calculated using the EIR method as presented in chapter ‘Financial instruments –
Material accounting policies’, ‘Measurement methods for financial instruments’, part i.’ Amortized cost and effective
interest rate’. The prepayment fees are not deferred and are assimilated to interest income.
‘Other similar income’ captures interest-like sources of income resulting from financial leases, non-derivative financial
assets measured at fair value through profit or loss and finance lease receivables.
‘Interest expenses’ relates to interest expense from financial liabilities measured at amortized cost calculated using effective
interest rate as discussed in chapter ‘Financial instruments’, ‘Measurement methods for financial instruments’, part (i)
‘Amortized cost and effective interest rate’.
‘Other similar expenses’ capture interest-like sources of expense resulting from effect of passage of time on provisions
recognised under IFRS 9 and IAS 37 and net defined liability (net interest cost on severance payment, pension and jubilee
obligations) under IAS 19.
As regards types of financial instruments, interest income and other similar income include interest income on loans and
advances to banks and customers, on cash balances, on debt securities in all measurement categories of financial assets, on
trade and other receivables and on finance lease receivables. Interest expenses and other similar expenses include interest
paid on deposits from customers, deposits from banks, debt securities issued and other financial liabilities in all
measurement categories of financial liabilities and interest paid on lease liabilities.
Interest income also includes modification gains and losses recognised on financial assets in Stage 1. Further, the
unamortized balance of the origination fees/transaction costs upon derecognition of assets in Stage 1 and 2 considered in
the effective interest rate is presented as interest income at the derecognition date.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Interest and other similar income |  |  |  |
Financial assets at amortized cost | 6,144,658 | 6,101,377 | 6,135,922 | 6,129,473
Financial assets measured at fair value through other comprehensive income | 769,962 | 591,469 | 769,962 | 591,469
Interest income | 6,914,620 | 6,692,846 | 6,905,884 | 6,720,942
Finance lease receivables | 161,785 | 165,934 | 883 | 823
Financial assets held for trading | 356,606 | 76,031 | 356,606 | 76,031
Other assets | 446 | 389 | 446 | 389
Negative interest from financial liabilities | 4 | 109 | 4 | 109
Other similar income | 518,841 | 242,463 | 357,939 | 77,352
Total interest and other similar income | 7,433,461 | 6,935,309 | 7,263,823 | 6,798,294
Interest and other similar expense |  |  |  |
Financial liabilities measured at amortized cost | -2,459,089 | -2,504,410 | -2,487,045 | -2,515,429
Interest expenses | -2,459,089 | -2,504,410 | -2,487,045 | -2,515,429
Lease liabilities | -20,342 | -18,814 | -19,922 | -18,449
Financial liabilities held for trading | -197,606 | - | -197,606 | -
Other liabilities | -10,028 | -11,085 | -10,005 | -11,034
Negative interest from financial assets | -32 | -24 | -32 | -24
Other similar expense | -228,008 | -29,923 | -227,565 | -29,507
Total interest and other similar expense | -2,687,097 | -2,534,333 | -2,714,610 | -2,544,936
Net interest income | 4,746,364 | 4,400,976 | 4,549,213 | 4,253,358

11
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

2. Net fee and commission income
The Group earns fee and commission income from a diverse range of services it provides to its customers. Fee and commission
income is measured based on the consideration specified in the contract with a customer. The Group recognizes revenue when it
performs a promised service to a customer. Fee income can be divided into the following two categories:
Fee income earned from services that are provided over a certain period of time
Fees earned for the provision of services over a period of time are accrued over that period, being recognized in statements
of profit or loss gradually. These fees include commitment fees, premiums received for financial guarantees and other fees
from lending business, commission income from asset management, custody and other management and advisory fees.
Services provided over a period of time also include certain payment services like periodic card fees.
Loan commitment given and received fees for loans that are likely to be drawn down and other credit related fees are
deferred (together with any incremental costs) and recognized as an adjustment to the effective interest rate on the loan.
When it is unlikely that a loan will be drawn down, the loan commitment fees are recognized over the commitment period
on a straight-line basis.
Fee income from providing transaction services
Fees arising from negotiating or participating in the negotiation of a transaction for a third party, such as the arrangement
of the acquisition of shares or other securities or the purchase or sale of businesses, are recognized on completion of the
underlying transaction. Fees or components of fees that are linked to a certain performance are recognized after fulfilling
the corresponding criteria. Fees that are recognized when the service is provided are securities – brokerage, clearing and
settlement, custody, payment services, customer resources distributed but not managed, structured finance.
When another party is involved in providing goods or services to a customer, the Group determines whether the nature of
its promise is a performance obligation to provide the specified goods or services itself (i.e. the Group is a principal) or to
arrange for those goods or services to be provided by the other party (i.e. the Group is an agent). This determination is
made by identifying each specified (i.e. distinct) good or service promised to the customer in the contract and evaluation
whether the entity obtains control of the specified goods or service before it is transferred to the customer (e.g.
intermediation for insurance, pension and leasing products).
When the Group is a principal, it recognizes as revenue the ‘gross’ amount paid by the customer for the specified good or
service and records a corresponding expense for the commission or fee that it has to pay to any agent, in addition to the
direct costs of satisfying the contract.

| Group
in RON thousands | 31.12.2025 | 31.12.2024
| Income | Expenses | Income | Expenses
Securities - brokerage | 84,448 | -9,321 | 72,177 | -8,190
Own issues | 15,225 | - | 5,942 | -
Transfer orders | 65,577 | -9,321 | 66,235 | -8,190
Other | 3,646 | - | - | -
Clearing and settlement | 14,477 | -2,730 | 11,477 | -3,921
Asset management | 49,221 | - | 40,689 | -
Custody | 29,528 | -7,833 | 26,116 | -7,059
Payment services | 1,002,649 | -282,519 | 933,101 | -259,308
Card business | 472,206 | -178,850 | 436,688 | -164,253
Other | 530,443 | -103,669 | 496,413 | -95,055
Customer resources distributed but not managed | 219,460 | -1,758 | 197,327 | -9,496
Collective investment | 56,384 | - | 51,506 | -
Insurance products | 158,653 | - | 142,972 | -4,242
Foreign exchange transactions | - | -1,758 | - | -5,254
Other | 4,423 | - | 2,849 | -
Structured finance | 37,668 | - | 23,278 | -
Lending business | 106,079 | -61,932 | 89,100 | -30,299
Guarantees given, guarantees received | 10,346 | -6,435 | 10,287 | -113
Loan commitments given, loan commitments received | 74,380 | - | 63,473 | -
Other lending business | 21,353 | -55,497 | 15,340 | -30,186
Other | 58,320 | -21,588 | 57,600 | -4,412
Total fee and commission income and expenses | 1,601,850 | -387,681 | 1,450,865 | -322,685
Net fee and commission income | 1,214,169 | 1,128,180

12
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

| Bank
in RON thousands | 31.12.2025 | 31.12.2024
| Income | Expenses | Income | Expenses
Securities - brokerage | 84,448 | -9,321 | 72,177 | -8,190
Own issues | 15,225 | - | 5,942 | -
Transfer orders | 65,577 | -9,321 | 66,235 | -8,190
Other | 3,646 | - | - | -
Clearing and settlement | 14,477 | -2,650 | 11,483 | -3,826
Asset management | - | - | - | -
Custody | 29,528 | -4,879 | 26,116 | -4,154
Payment services | 1,003,088 | -281,960 | 933,526 | -258,984
Card business | 472,209 | -178,850 | 436,691 | -164,252
Other | 530,879 | -103,110 | 496,835 | -94,732
Customer resources distributed but not managed | 201,851 | -1,758 | 179,431 | -9,496
Collective investment | 56,384 | - | 51,506 | -
Insurance products | 137,563 | - | 121,757 | -4,242
Foreign exchange transactions | - | -1,758 | - | -5,254
Other | 7,904 | - | 6,168 | -
Structured finance | 37,668 | - | 23,278 | -
Lending business | 107,338 | -61,599 | 91,065 | -30,038
Guarantees given, guarantees received | 11,601 | -6,435 | 12,228 | -113
Loan commitments given, loan commitments received | 74,384 | - | 63,497 | -
Other lending business | 21,353 | -55,164 | 15,340 | -29,925
Other | 49,635 | -16,980 | 50,595 | -1,062
Total fee and commission income and expenses | 1,528,033 | -379,147 | 1,387,671 | -315,750
Net fee and commission income | 1,148,886 | 1,071,921

3. Dividend income
Revenue is recognized when the Group’s or Bank’s right to receive the payment is established. This line item includes
dividends from all shares and other equity investments, i.e. from those that are held for trading, non-trading equity
instruments at FVPL and at FVOCI.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Non-trading financial assets at fair value through profit or loss (i) | 6,581 | 6,192 | 6,581 | 6,192
Dividend income from investment in subsidiaries and associates (ii) | - | - | 3,543 | 67,886
Dividend income | 6,581 | 6,192 | 10,124 | 74,078

(i) Dividends received from non-trading financial assets at fair value through profit or loss: Biroul de Credit, BCR
Asigurari de Viata, Transfond SA and Omniasig Vienna Insurance Group;
(ii) Dividends received from subsidiaries: BCR Pensii SAFPP and BCR Payments Services.
4. Net trading result
Results arising from trading activities include all gains and losses from changes in fair value (clean price) of financial assets
classified as held for trading and from derivatives not designated as hedging instruments and gains and losses from their
derecognition. Also, foreign exchange gains and losses on all monetary assets and liabilities and from spot currency
conversions are included in this line. Transactions with related parties are presented in Note 44.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Securities and derivatives trading | 165,011 | 104,941 | 165,011 | 104,941
Foreign exchange transactions | 379,411 | 382,974 | 379,411 | 382,930
Net trading result | 544,422 | 487,915 | 544,422 | 487,871

13
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

5. Rental income from investment properties and other operating leases
Rental income from investment properties and other operating leases is recognised on a straight-line basis over the lease
term.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Investment properties | 3,636 | 3,115 | 4,013 | 3,598
Other operating leases | 10,601 | 31,428 | 1,253 | 1,748
Rental income from investment properties and other operating leases | 14,237 | 34,543 | 5,266 | 5,346

Operating leases are mainly from vehicles rentals and other buildings which do not meet the criteria for investment
property. Reported decrease is in line with expectation of operating leasing business of the Group (see Note 35).
6. General administrative expenses
Personnel expenses
Personnel expenses include wages and salaries, bonuses, statutory and voluntary social security contributions, staff-related
taxes, levies and cash-settled share-based payments, service costs for severance payments.
Short-term employee benefits include wages, salaries, bonuses and social security contributions. Short-term employee
benefits are recognized as expense when services are rendered.
The Bank and the subsidiaries in Romania, in the normal course of business make payments to the Romanian State funds
on behalf of its Romanian employees for pension, health care and income tax and unemployment benefit. All employees of
the Bank and of the subsidiaries in Romania are members and are also legally obliged to make defined contributions
(included in the social security contributions) to the Romanian State pension plan (a State defined contribution plan). All
relevant contributions to the Romanian State pension plan are recognized as an expense in the profit or loss as incurred.
The Bank and its subsidiaries in Romania make payments to the Romanian state’s funds on behalf of its Romanian
employees for contributions due to the state social insurance budget, contributions due to the single health insurance fund.
Contributions are paid by the employer. The amounts paid in 2025 to the Romanian State Pension Plan are RON 289,727
thousands for Group (2024: RON 277,263 thousands) and RON 250,234 thousands for the Bank (2024: RON 240,283
thousands). BCR pays the labor insurance contribution to the state funds, the contribution is relevant to the profit and loss
account.
For Management Board members, all executive directors and Other Identified staff, variable remuneration is subject to a
deferral mechanism from accounting treatment point of view in accordance with Remuneration Policy.
Depending on the amount, a pre-set % of the variable remuneration payment is allocated immediately (meaning upfront
payment) and a pre-set % of the variable remuneration payment is deferred over the minimum five (5) years for
Management Board members and minimum four (4) years (equal installments) for all Executive Managers and Other
Identified Staff. 50% of the entire variable remuneration has to be effected in cash and 50% in remuneration certificates.
BCR uses a remuneration certificate as an alternative to non-monetary payment. The nominal value of a certificate shall be
1 RON (at granting date). The value of a certificate at the payment date shall be set based on its current price observing the
calculation method detailed in the Remuneration Policy.
Other administrative expenses
Other administrative expenses include primarily information technology expenses (IT), expenses for office space, office
operating expenses, advertising and marketing and expenditures for legal and other consultants. Furthermore, the line
item contains deposit insurance contributions.
Depreciation and amortisation
This line item comprises depreciation of property and equipment, depreciation of investment property and amortisation of
intangible assets.
In the line item ‘Depreciation and amortisation’, also the depreciation of right-of-use assets according to IFRS 16 is
disclosed.
14
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Personnel expenses (i) | -1,110,961 | -1,111,044 | -1,042,600 | -1,047,484
Other administrative expenses (ii) | -1,013,577 | -900,699 | -997,567 | -890,171
Depreciation and amortisation (iii) | -270,946 | -259,105 | -258,129 | -241,797
Total | -2,395,484 | -2,270,848 | -2,298,296 | -2,179,452
Personnel expenses | -1,110,961 | -1,111,044 | -1,042,600 | -1,047,484
Wages and salaries | -1,052,020 | -1,056,624 | -986,536 | -996,074
Compulsory social security | -28,458 | -28,527 | -26,639 | -26,925
Long-term employee provisions | -1,538 | -507 | -1,473 | -28
Other personnel expenses | -28,945 | -25,386 | -27,952 | -24,457
Other administrative expenses | -1,013,577 | -900,699 | -997,567 | -890,171
Payments into deposit insurance fund | -20,043 | -19,988 | -19,651 | -19,582
IT expenses | -457,336 | -387,974 | -448,763 | -380,930
Expenses for office space maintenance | -73,732 | -66,538 | -73,111 | -65,822
Office operating expenses | -169,807 | -155,443 | -176,032 | -162,072
Security services | -12,174 | -11,753 | -12,174 | -11,753
Service charge | -20,133 | -18,566 | -19,880 | -18,362
Advertising / Marketing | -150,520 | -137,191 | -144,620 | -134,206
Legal and consulting costs | -64,242 | -64,615 | -61,061 | -61,395
Sundry administrative expenses | -45,590 | -38,631 | -42,275 | -36,049
Depreciation and amortisation | -270,946 | -259,105 | -258,129 | -241,797
Software and other intangible assets | -95,750 | -88,432 | -90,093 | -82,378
Owner occupied real estate | -19,795 | -15,164 | -19,643 | -15,012
Investment properties | -4,768 | -5,127 | -4,768 | -5,127
Right of use assets | -79,590 | -77,466 | -75,831 | -73,357
Office furniture and equipment and sundry property and equipment | -71,043 | -72,916 | -67,794 | -65,923
General administrative expenses | -2,395,484 | -2,270,848 | -2,298,296 | -2,179,452

(i) Personnel expenses almost flat, reduced FTEs and lower variable remuneration, fully offsetting the collective
labor agreement driven wage inflation. The number of full time equivalent of the Bank at 31 December 2025 was 4,737
employees (31 December 2024: 4,851 employees). The number of full time equivalent of the Group at 31 December 2025
was 5,051 employees (31 December 2024: 5,158 employees).
Starting 2022, WeShare program was implemented in BCR Bank and its subsidiaries in Romania. WeShare program
is a cash-settled share-based payment transaction and consists of two parts: WeShare-Investment Plus and WeShare-
Participation. Both parts are offered to employees of BCR Group provided that the specific requirements detailed in the
Remuneration Policy are met.
Under the WeShare-Investment Plus part program all employees, who had been employed by an entity of the
Group, from March/April 2025 until June 2025 (service condition) could voluntarily invest in Erste Group (EGB) shares
and receive free shares depending on the amount of their personal investment. The WeShare-Investment Plus part was
settled in June 2025. The number of free shares, which were granted under this program for the period, is 15,680. Personnel
expenses in the amount of RON 5,504 thousands were booked.
In June 2025 was implemented the WeShare-Participation part of 2024 program. All employees who have been
employed by an entity of the Group for at least six months in 2024 and were still employed until the transfer of the shares
in June 2025 (service condition) were entitled to receive shares in an equivalent amount of EUR 350. The number of free
shares, which were granted under this program for the period, was 24,666. Personnel expenses in the amount of RON
15,134 thousands (employer taxes included) were booked for the period July 2024 – June 2025.
In the WeShare-Participation part all employees, who have been employed by an entity of the Group for at least six
months in 2025 and are still employed until the transfer of the shares to the employees in 2026 (service condition) are
entitled to receive shares in an equivalent amount of EUR 350. The number of shares granted is calculated using the on-
grant date expected EGB share price on settlement date. Based on the number of entitled employees, personnel expenses in
the amount of RON 6,347 thousands (employer taxes included) were booked for the period July – December 2025;
(ii) Other administrative expenses for the Group in 2025 were higher (+13% / 112,878 thousand) compared with
2024, driven by higher IT costs supporting strategic projects, as well as elevated advertising and marketing spend (including
the reclassification of ‘recommendation fees’ from NFC to GAE), alongside the effect of higher inflation and VAT with
impact across all costs positions.
(iii) Depreciation and amortization for the Group in 2025 were higher (+5% / RON 11,841 thousand) compared
with 2024, mainly coming from IT depreciation (Software and other intangible assets - projects related) and Property
depreciation (Owner occupied real estate - mainly due to put in function of major investments related to Retail plan)
15
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The key management remuneration for the Bank

| 2025 | 2024
in RON thousands | Expenses | Employer taxes | Accrued liability | Employer taxes | Expenses | Employer taxes | Accrued liability | Employer taxes
Short-term benefits | 16,886 | 242 | - | - | 16,205 | 205 | - | -
Salaries | 11,383 | 191 | - | - | 10,784 | 161 | - | -
Benefits in kind | 5,503 | 51 | - | - | 5,421 | 44 | - | -
Share-based compensation: | 83 | 2 | 27,486 | 618 | - | - | 26,066 | 586
Cash-settled share-based compensation (bonus cash) | 83 | 2 | 27,486 | 618 | - | - | 26,066 | 586

The actual cash out for share-based compensation was of 7,748 thousands RON in 2025 and 7,150 thousands RON in 2024.
The average numbers of own employees during the financial years are presented below (weighted according to
the period of employment):

| 2025 | 2024
Domestic | 5,116 | 5,227
Banca Comerciala Romana | 4,810 | 4,924
BCR Leasing IFN SA | 154 | 149
BCR Banca pentru Locuinte SA | 29 | 31
BCR Payments Services SRL | 65 | 64
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA | 54 | 52
BCR Fleet Management SRL | - | 3
Suport Colect SRL | 4 | 4
Total | 5,116 | 5,227

7. Gains/losses from derecognition of financial assets measured at amortized cost
This line item includes selling and other derecognition gains or losses on financial assets measured at amortized cost.
There were no such sales during 2025. As for 2024, there were sales of bond with nominal value of RON 248,746
thousands , with a carrying amount of RON 224,363 thousands, generated a loss of RON 26,881 thousands.
8. Other gains/losses from derecognition of financial instruments not measured at fair value
through profit or loss (FVOCI)
This line item includes selling and other derecognition gains or losses on financial assets at FVOCI.
In 2025, sales of bonds with nominal value of RON 266,600 thousands and a carrying amount of RON 273,421 thousands
generated a loss of RON 1,307 thousands.
In 2024, sales of bonds with nominal value of RON 529,245 thousands and a carrying amount of RON 541,005 thousands
generated a loss of RON 4,127 thousands.
9. Net impairment loss on financial instruments
Net impairment losses on financial instruments comprise impairment losses and reversals of impairment on all types of
financial instruments, to which the IFRS 9 expected credit loss impairment model applies. The impairment result also
includes recoveries on written-off financial assets. Modification gains and losses recognised on financial assets in Stage 2
and Stage 3 and POCI assets are also included in this line item. Moreover, gains/losses from derecognition of financial
assets in Stage 3 and POCI assets are presented as part of the impairment result – see section D Impairment of Financial
Instruments.
16
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
(Allocation)/Release to risk provisions | -263,017 | -144,390 | -215,458 | -85,261
Financial assets at fair value through other comprehensive income | -361 | -929 | -361 | -929
Financial assets at amortized cost | -357,711 | -218,335 | -318,426 | -185,469
Finance lease receivables | -6,804 | -26,435 | 1,183 | -13
Commitments and guarantees given | 101,859 | 101,309 | 102,146 | 101,150
Direct write-offs | -1,717 | -6,807 | -1,717 | -6,800
Recoveries recorded directly to the income statements | 18,342 | 53,598 | 7,992 | 34,322
Modification gains or losses | -6,016 | -8,743 | -6,016 | -8,743
Net impairment gain/ (losses) on financial instruments | -252,408 | -106,342 | -215,199 | -66,482

Group impairment result amounted to RON 252mn, mainly driven by allocations booked for NPL inflows, partially offset
by proceeds from Retail debt sale, recoveries and portfolio provisions reassessment.
10. Reconciliation of the net impairment result to the changes in the credit loss allowances
(CLA)

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Opening balance of credit loss allowances | -3,403,863 | -3,393,930 | -3,235,478 | -3,227,088
(Allocation)/Release to risk provisions | -263,017 | -144,390 | -215,458 | -85,261
(Increase)/ decrease attributable to write-offs | 423,386 | 156,722 | 367,428 | 97,863
(Increase) due to passage of time (UWC) | -117,533 | -93,567 | -115,248 | -89,729
CLA decreases due to sales | 338,270 | 65,793 | 338,270 | 65,793
Other CLA changes* | 115,971 | 5,509 | 120,570 | 2,944
Closing balance of credit loss allowances (total) | -2,906,786 | -3,403,863 | -2,739,916 | -3,235,478

* The deviation compared to previous year is related to adjustments for purchased originated credit-impaired loss.
Balance of credit loss allowance includes allowances for cash and cash equivalents in amount of RON 1,470 thousands for
Group (2024: RON 1,156 thousands) and RON 1,470 thousands for the Bank (2024: RON 1,066 thousands).
11. Other operating result
The other operating results reflect all other income and expenses not directly attributable to Group’s primary activities.
In particular, this includes impairment losses or any reversal of impairment losses as well as results on the sale of property
and equipment, investment property and intangible assets. The main reasons for impairment losses to be recognized are
summarized hereinafter:
• the intention to sell fixed assets and accordingly their re-measurement before reclassifying them based on IFRS 5;
• not fully occupied buildings that triggered a lower recoverable amount;
• recurring measurement for foreclosed assets at the balance sheet date;
• recurring measurement for own used items of property at the balance sheet date; and
• net releases from other provisions and subsidiaries impairment
In addition, the other operating result encompasses the following: Recovery and resolution fund contribution, expenses for
other taxes, income from the release of and expenses for allocations to provisions and gains or losses from impairment of
subsidiaries.
Furthermore, specific supplementary turnover tax is considered as part of the other operating result. Group recognizes a
liability for the tax when the activity that triggers payment, as identified by the relevant legislation, occurs.
17
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Other income, of which: | 702,611 | 101,514 | 612,161 | 94,389
Gain on disposal of property and equipment | - | 4,847 | 7,323 | 8,477
Gain on disposal of investment properties and intangible assets | 223 | 3,993 | 223 | 3,993
Gain on disposal of non-current assets held for sale and disposal group (i) | 1,808 | 5,747 | 1,808 | 5,145
Gains on other assets | 43,424 | 25,733 | 2,767 | 12,341
Other income (ii) | 435,529 | 44,432 | 34,942 | 20,934
Other provisions - net (allocation)/release (iii) | 221,627 | 16,762 | 212,816 | 18,233
Impairment of subsidiaries - net (allocation)/release (iv) | - | - | 352,282 | 25,266
Other expense, of which: | -642,078 | -501,552 | -558,002 | -448,564
Loss on disposal of premises and equipment | -3,582 | - | - | -
Losses on other assets | -39,936 | -21,150 | -1,663 | -7,555
Impairment of tangible and intangible assets - net (allocation)/release (v) | -8,106 | -27,309 | -4,098 | -9,568
Impairment of assets held for sale and other assets(vi) | -6,298 | -29,509 | -3,860 | -30,758
Recovery and resolution fund | -37,658 | -27,393 | -37,648 | -27,383
Insurance premiums | -58,626 | -59,925 | -57,580 | -56,749
Other taxes | -53,275 | -20,183 | -48,707 | -16,386
Supplementary tax for credit institutions (vii) | -316,070 | -182,460 | -307,637 | -181,702
Other expenses (viii) | -118,527 | -133,623 | -96,809 | -118,463
Total | 60,533 | -400,038 | 54,159 | -354,175

(i) In 2025 the Bank sold various lands and buildings held for sale;
(ii) In September 2025, BCR Banca pentru Locuinte recognized as income from the release of the liability for penalties
recorded towards the Ministry of Development, an amount of RON 388,919 thousand;
(iii) The movement in amount of RON 194,583 thousands in other provisions are presented in Note 37;
(iv) Impairment of subsidiaries is eliminated at Group level. For 2025, the Bank registered a release of impairment, in
amount of RON 352,282 thousands. Further details are presented in Note 40;
(v) The book value of fixed assets was adjusted to the recoverable amount based on an external valuator report in 2025, as
a result of annual impairment test as presented in Note 31;
(vi) In 2025 impairment for repossessed assets was in amount of RON (3,7) million compared to 2024 where impairment
repossessed assets were RON (16) million and impairment sundry debtors RON (11) million;
(vii) Increase compared to 2024 is due to change in percentage from 2 % to 4% and increase in tax base. For more details
please see Note 12.3. From the total Group amount of RON 316,070 thousand, an amount of RON 7.778 thousand
represents the related supplementary tax for credit institutions due to the release of RON 388.919 thousand, as
disclosed in Note 40.
(viii) Includes sundry expenses: cash transportations, penalties, expenses from the disposal of intangible assets.
12. Taxes on income
12.1 Current and deferred tax
Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period. However,
they are recognised in other comprehensive income (OCI) or directly in equity if they arise from a transaction or event
which itself is recognised in OCI or equity.
i. Current tax
The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the
statements of financial position date.
ii. Deferred tax
Deferred tax assets are recognized for all deductible temporary differences.
The Group recognizes both deferred tax assets and liabilities within different entities across the Group which have no
enforceable right to be compensated.
18
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Taxes on income are made up of current taxes on income calculated in each of the Group companies based on the results
reported for tax purposes and the change in deferred taxes.
Material Accounting Judgments, Assumptions and Estimates
Judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing
and level of future taxable profits, together with future tax planning strategies. For this purpose a planning period of 5 years
is used. Income tax uncertainties in accounting have been considered by weighting possible outcome scenarios.
Taxes on income are made up of current taxes on income calculated in each of the Group entities based on the results
reported for tax purposes, corrections to taxes on income for previous years and the change in deferred taxes.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Current tax expense/income | -568,805 | -488,605 | -554,098 | -476,066
Current period | -568,887 | -488,605 | -554,098 | -476,066
Prior period | 82 | - | - | -
Deferred tax expense/income | -54,958 | -31,467 | -57,991 | -26,288
Current period | -54,958 | -31,467 | -57,991 | -26,288
Taxes on income | -623,763 | -520,072 | -612,089 | -502,354

The following table reconciles the income taxes reported in the statements of profit or loss to the pre-tax profit/loss
multiplied by the nominal Romanian tax rate.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Pre-tax profit/(loss) | 3,943,854 | 3,287,495 | 3,795,724 | 3,284,106
Income tax expense for the financial year at the domestic statutory tax rate (16%) | -631,017 | -525,999 | -607,316 | -525,457
Impact of tax-exempt income and other similar income (i) | 411,647 | 344,990 | 329,634 | 301,230
Tax increases due to non-deductible expenses and similar elements (ii) | -430,105 | -391,318 | -362,138 | -339,739
Impact of other elements (iii) | 25,630 | 52,255 | 27,731 | 61,612
Tax expense not atributable to the reporting period | 82 | - | - | -
Income tax (expense) / release reported in the income statements | -623,763 | -520,072 | -612,089 | -502,354
The effective tax rate | 15.82% | 15.82% | 16.13% | 15.30%

(i) Includes mainly the releases of the provisions for off-balance sheet exposures, releases of the provisions for litigations;
(ii) Includes mainly the allocation of the provisions for off-balance sheet exposures, allocations of the provisions for
litigations and other provisions, specific supplementary turnover tax;
(iii) Includes sponsorship, tax exemption for reinvested profit.
The increase in income tax from RON 502,354 thousand in 2024 to RON 612,089 thousand in 2025 is primarily attributable
to the Bank’s higher pre‑tax profit, reflecting a stronger operating performance in 2025 relative to the prior year.
Furthermore, the tax charge was additionally impacted by the sale of receivables.
12.2 Pillar 2
Law no. 431/2023 transposes the provisions of Directive (EU) 2022/2523 (hereinafter referred to as “Pillar 2 Directive”) to
introduce into the Romanian legislation a complex system of rules for an effective minimum taxation of 15% for
multinational enterprise groups and large-scale domestic groups with annual consolidated revenues of at least EUR 750
million in at least two of the four previous financial exercises. The law is applied to financial exercises starting as of
December 2024.
For financial year 2025, the reporting deadline is 15 months from the last day of reporting financial year. This is also the
deadline for the potential payment of the top-up tax. The Group calculated the effective tax rate under the Globe model
rules for 2025 and is above the legal threshold of 15%, meaning that the Group is not liable for paying Pillar 2 income taxes.
19
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

12.3 Supplementary tax for credit institutions
BCR is liable for a specific supplementary turnover tax ("Impozit suplimentar pentru institutiile de credit"- Supplementary
tax for credit institutions) in accordance with the provisions of Fiscal Code, calculated by applying the following tax rates to
the Issuer's turnover:
• 2% for 1st January 2024 – 30th June 2025;
• 4% as of 1st July 2025 until 31st December 2026.
To determine the fiscal result, this tax is a non-deductible expense. The supplementary tax for credit institutions is
computed, declared and paid quarterly, up to and including the 25th day of the month following the quarter for which the
payment is made, for first to third quarters, and up to and including 25 March of the following year, for the fourth quarter.
The turnover subject of tax consists of elements such as interest income, fee and commission income, dividend income, net
trading result, net gains on financial instruments and other income determined in accordance to National Bank of
Romania Order 8/2024.
12.4 Reinvested profit
Tax exemption on reinvested profit is a tax relief/incentive available for profit reinvested in technical equipment (subgroup
2.1 or 2.2.9 of the Catalogue of the Classification and the Normal Useful Life of Fixed Assets) and software or license rights
produced/acquired during the relevant tax period and is represented by the acquisition value (including VAT) of the
respective investment (investment go live in the current year). The amount of profit for which the profit tax exemption was
applied, minus the portion related to the legal reserve, shall be allocated at the end of the financial year or during the
following year, with priority given to the establishment of reserves, up to the level of the accounting profit recorded at the
end of the financial year.
In order to benefit from this tax exemption, BCR has to keep the equipment for at least half of the normal useful economic
life, in accordance with the applicable accounting rules, but no more than 5 years.
The amount of RON 4,745 thousand represents the tax exemption related to the reinvested profit recognized in 2025,
totaling RON 29,655 thousand, which will be transferred to Other Reserves following the approval of the General Meeting
of Shareholders, in accordance with the applicable legal provisions. Should a decision be made in the future to use or
distribute this reserve in any form, the tax exemption associated with the profit recorded in Other Reserves will be
reversed, and the corresponding tax will become payable at that time.
12.5 Sponsorship
All companies registered as corporate income taxpayers that record sponsorship expenses in accordance with the relevant
legislation may benefit from tax credit (deduction from the corporate income tax due) for sponsorship, which means that
part of the tax due to the state budget is redirected towards the recipients of the sponsorships granted by the company.
Eligibility for the tax credit requires that sponsorships comply with Law no. 32/1994 on Sponsorship, as amended, and with
the Fiscal Code. Sponsorships must be supported by a written agreement, and beneficiaries must be registered, at the
contract date, in the Register of entities eligible for tax deductions. In 2025, the Bank incurred sponsorship expenses of
RON 22,986 thousand (2024: RON 55,259 thousand), generating a tax credit of an equivalent amount. If the statutory
minimum threshold under the Fiscal Code is not fully utilized, the taxpayer may instruct the tax authority to redirect
additional amounts to eligible registered beneficiaries.
The following table shows the income tax effects relating to each component of other comprehensive income:

|  |  |  |  |  | Group
| 2025 | 2024
in RON thousands | Before-tax amount | Tax benefit/ (expense) | Net-of-tax amount | Before-tax amount | Tax benefit/ (expense) | Net-of-tax amount
Fair value reserve | 271,993 | -43,517 | 228,476 | 53,765 | -8,601 | 45,164
Remeasurement of net gain/ (losses) on benefit plans | 49,008 | -7,839 | 41,169 | 66,511 | -10,610 | 55,901
Other comprehensive income | 321,001 | -51,356 | 269,645 | 120,276 | -19,211 | 101,065

20
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  | Bank
| 2025 | 2024
in RON thousands | Before-tax amount | Tax benefit/ (expense) | Net-of-tax amount | Before-tax amount | Tax benefit/ (expense) | Net-of-tax amount
Fair value reserve | 271,995 | -43,517 | 228,478 | 53,767 | -8,601 | 45,166
Remeasurement of net gain/ (losses) on benefit plans | 49,287 | -7,886 | 41,401 | 66,376 | -10,620 | 55,757
Other comprehensive income | 321,282 | -51,403 | 269,879 | 120,143 | -19,221 | 100,923

Major components for deferred tax assets and deferred tax liabilities

|  |  |  |  |  | 31.12.2025 | Group
|  |  |  |  | Net variance 2025
in RON thousands | Tax assets 2025 | Tax assets 2024 | Tax liabilities 2025 | Tax liabilities 2024 | Total | Through profit or loss | Through other comprehensive income
Temporary differences related to the following items: |  |  |  |  |  |  |
Financial assets at fair value through other comprehensive income | -43,517 | -8,601 | - | - | -34,916 | - | -34,916
Property and equipment (useful life in tax law different) | 3,686 | 2,548 | - | - | 1,138 | 1,138 | -
Long-term employee provisions (tax valuation different) | -7,839 | -10,610 | - | - | 2,771 | - | 2,771
Other provisions (tax valuation different) | 102,185 | 151,453 | - | - | -49,268 | -49,268 | -
Intangible assets | -56,860 | -49,141 | - | - | -7,719 | -7,719 | -
Other | 4,790 | 6,581 | -22,130 | -25,177 | 1,256 | 891 | -
Total deferred taxes | 2,445 | 92,230 | -22,130 | -25,177 | -86,738 | -54,958 | -32,145
Total current taxes | 1,068 | 139 | -58,994 | -42,508 | -568,805 | -568,805 | -
Total taxes | 3,513 | 92,369 | -81,124 | -67,685 | -655,543 | -623,763 | -32,145

|  |  |  |  |  | 31.12.2025 | Bank
|  |  |  |  | Net variance 2025
in RON thousands | Tax assets 2025 | Tax assets 2024 | Tax liabilities 2025 | Tax liabilities 2024 | Total | Through profit or loss | Through other comprehensive income
Temporary differences related to the following items: |  |  |  |  |  |  |
Financial assets at fair value through other comprehensive income | -43,517 | -8,603 | - | - | -34,914 | - | -34,914
Property and equipment (useful life in tax law different) | 4,724 | 6,463 | - | - | -1,739 | -1,739 | -
Long-term employee provisions (tax valuation different) | -7,888 | -10,620 | - | - | 2,732 | - | 2,732
Other provisions (tax valuation different) | 101,988 | 151,212 | - | - | -49,224 | -49,224 | -
Intangible assets | -54,913 | -47,885 | - | - | -7,028 | -7,028 | -
Total deferred taxes | 394 | 90,567 | - | - | -90,173 | -57,991 | -32,182
Total current taxes | - | - | -54,373 | -38,260 | -554,098 | -554,098 | -
Total taxes | 394 | 90,567 | -54,373 | -38,260 | -644,271 | -612,089 | -32,182

13. Dividends paid
Dividends on ordinary shares are recognized as a liability and deducted from equity when they are approved by the Group’s
shareholders.
Following the Decision of the Ordinary General Meeting of shareholders, BCR distributed during 2025 for financial year
2024: dividends related to AT1 instruments in amount of EUR 21,904,562 (RON 109,029,956 equivalent) as described in
Note 39 and dividends related to ordinary shares in amount of R O N 1,280,845,846. For 2024 the value of the gross dividend
per share was RON 0.0788.
Distributed during 2024 for financial year 2023: dividends related to AT1 instruments in amount of EUR 13,485,000 (RON
67,105,405 equivalent) and dividends related to ordinary shares in amount of RON 1,176,600,923. For 2023 the value of the
gross dividend per share was RON 0.0724.
21
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 3 – Financial instruments – Material accounting policies
A financial instrument is any contract giving rise to a financial asset of one party and a financial liability or equity
instrument of another party. In accordance with IFRS 9, all financial assets and liabilities – which also include derivative
financial instruments – have to be recognised on the statements of financial position and measured in accordance with
their assigned categories.
a. Measurement methods for financial instruments
Measurement of financial assets and financial liabilities is subject to two primary measurement methods.
(i) Amortized cost and effective interest rate
Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference
between that initial amount and the maturity amount. For financial assets, the amount is adjusted for any loss allowance.
(ii) Fair value
Details on valuation techniques applied for fair value measurement and on the fair value hierarchy are disclosed in Note 23
“Fair value of financial assets and liabilities”.
b. Classification and subsequent measurement of financial assets
In accordance with IFRS 9, the classification and subsequent measurement of financial assets depend on the following two
criteria:
• the business model for managing the financial assets and
• the cash flow characteristics of the financial assets.
Application of these criteria leads to classification of financial assets into three measurement categories described in the
notes:
• Note 15 - Financial assets at amortized cost;
• Note 21 - Financial assets at fair value through other comprehensive income;
• Note 20 – Non-trading financial assets mandatorily at fair value through profit or loss.
c. Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at amortized cost unless they are measured at fair value through profit or
loss. Interest expense is calculated by applying the EIR to the amortized cost of a financial liability. Further details on
financial liabilities at amortized cost and financial liabilities at FVPL are in the notes: Note 17 Financial liabilities
measured at amortized costs and section Financial instruments at fair value.
d. Impairment of financial instruments
BCR Group recognizes loss allowances for impairment on its debt instrument financial assets, other than those measured
at FVPL, its lease receivables and its off-balance credit risk exposures arising from financial guarantees and irrevocable
loan commitments.
The amount of the impairment loss is recognised as a loss allowance. For the purpose of the measurement of the amount of
expected credit loss and recognition of interest income, BCR Group distinguishes between three stages of impairment.
As per IFRS 9 requirements, the following definitions of expected credit losses are used:
• lifetime expected credit losses - the expected credit losses that result from all possible default events over the
expected life of a financial instrument;
• 12-month expected credit losses - the portion of lifetime expected credit losses that result from default events on a
financial instrument that are possible within the 12 months after the reporting date.
Stage 1 relates to financial instruments for which no significant increase in credit risk has been recorded since their initial
recognition. The impairment is measured in the amount of the 12-month expected credit loss. Interest income is recognised
by effective interest rate (EIR) applied to the gross carrying amount of the financial asset.
22
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Financial instruments in Stage 2 are subject to significant increase in credit risk since their initial recognition. The
impairment is measured in the amount of the lifetime expected credit loss. Interest income is recognised by EIR applied to
the gross carrying amount of the financial asset.
Financial assets in Stage 3 are credit-impaired. In respect of applying the ‘credit-impaired’ concept of IFRS 9, BCR Group
generally adopted the approach of aligning it with the regulatory concept of ‘default’. The impairment for such financial
assets is measured in the amount of lifetime expected credit loss. Interest income is recognised by EIR applied to the
amortized cost (i.e. the net carrying amount) of the financial asset.
From statements of financial position perspective, interest is accrued based on the financial assets’ gross carrying amount.
The difference between the interest accrued on the assets and the interest income on the net carrying amount recognised is
reflected through the allowance account (without impacting the impairment loss).
The loss allowances decrease the value of the assets, i.e. for financial assets measured at amortized cost, the net carrying
amount of the financial asset presented on the balance sheet is the difference between the gross carrying amount and the
cumulative loss allowance, that is recognised in the statements of profit or loss. However, for financial assets measured at
FVOCI, the loss allowance is recognised in accumulated OCI, specifically under ‘Fair value reserve’ in the statements of
changes in equity and it does not reduce the carrying amount of the financial asset on the statements of financial position.
For financial assets that are credit-impaired at initial recognition (purchased or originated credit-impaired – POCI –
financial assets) lifetime expected credit losses are initially reflected in the credit-adjusted effective interest rate. As a result,
no loss allowance is recognised at inception. Subsequently, only adverse changes in lifetime expected credit losses after the
initial recognition are recognised as loss allowance, whilst favorable changes are recognised as impairment gains increasing
the gross carrying amount of the POCI financial assets.
Loss allowances for loan commitments and financial guarantees are presented under the balance sheet line item
‘Provisions’. Measurement of ECL for credit lines and other facilities with undrawn component is done separately for the
undrawn component.
In the statements of profit or loss, impairment losses and their reversals (gains) on all categories of financial instruments
are presented in the line item ‘Net impairment loss on financial instruments’. Disclosures concerning impairment of
financial assets are in Note 9.
e. Derecognition of financial instruments including treatment of contractual modifications
i. Derecognition of financial assets
The difference between the carrying amount of the derecognized asset and the consideration received is presented in the
statements of profit or loss in the line ‘Gains/losses from derecognition of financial assets measured at amortized cost’ (if
the case) or, for debt financial assets at FVOCI, in the line ‘Other gains/losses from derecognition of financial instruments
not measured at fair value through profit or loss‘. For financial assets measured at FVPL, the derecognition gains or losses
are recognised together with the measurement result in the lines ‘Net trading result’ or ‘Gains/losses from financial
instruments measured at fair value through profit or loss’.
ii. Derecognition criteria with respect to contractual modifications of financial assets
In the normal course of running its lending business and in agreement with the respective debtors, BCR Group may
renegotiate or otherwise modify some terms or conditions of the underlying contracts. This can involve either market-
driven commercial renegotiations or contractual changes aimed at alleviating or preventing borrower’s financial difficulty.
For the purpose of capturing the economic substance and financial effect of such contractual modifications, BCR Group
has developed a set of criteria to assess whether or not the modified terms are substantially different from the original
terms and thus the financial asset should be derecognized.
Substantial modifications lead to derecognition of the original financial asset and initial recognition of the modified
financial asset as a new financial instrument. They include the following events:
• change of the contractual counterparty (unless this is a formal change such as changes in legal name);
• change in the currency of the contract (unless the change results from exercising an embedded option in the
original contract with pre-agreed conditions of the change, or if the new currency is pegged to the original
currency);
• introduction of a non-SPPI contractual feature (unless it is intended to improve recoveries from debtors by
granting concessions supporting them to recover from financial difficulties);
23
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

• removal of a non-SPPI contractual feature; and
• the modification which alters floating interest rate into fixed interest rate (such as Euribor-based interest rate into
fixed interest rate) or vice versa for the entire remaining life of the financial asset.
Some derecognition criteria distinguish whether contractual modifications are applied to debtors facing financial
difficulties. Application of certain modifications to debtors in financial difficulties is not considered as substantial since
they are aimed at improving the prospects of the Bank to recover the claims by tailoring the repayment schedules to
specific financial conditions of those debtors. On the other hand, such contractual modifications applied to performing
debtors may be considered as substantial enough to warrant the derecognition, as further detailed below.
From this perspective, the following criteria lead to derecognition unless they are considered as forbearance measures, they
are applied to customers in default or they trigger default:
• repayment schedule changed in a way that the weighted remaining maturity of the assets is modified by more
than 100% and not less than two years compared to the original asset;
• change in timing/amount of contractual cash flows resulting in the present value of the modified cash flows
(discounted at pre-modification effective interest rate) being different by more than 10% of the gross carrying
amount of the asset immediately before the modification (cumulative assessment considering all modifications
occurring over the last twelve months).
If contractual modifications that qualify as forbearance measures are applied to customers in default or trigger default are
so significant that they are qualitatively assessed as an extinguishment of original contractual rights, they result in
derecognition. Examples of such modifications are:
• a new agreement with materially different terms signed up as part of distressed restructuring following a
standstill agreement suspending the rights of the original assets;
• consolidation of multiple original loans into one with substantially different terms; or
• transformation of a revolving loan into non-revolving.
Contractual modifications leading to derecognition of the related original assets result in the initial recognition of new
financial assets. If the debtor is in default or the significant modification leads to the default, then the new asset will be
treated as POCI. The difference between the carrying amount of the derecognized asset and initial fair value of the new
POCI asset is presented in the statements of profit or loss in the line ‘Impairment result from financial instruments’.
If the debtor is not in default or the significant modification does not lead to default, the new asset recognised after
derecognition of the original asset will be in Stage 1. For loans measured at amortized cost, the unamortized balance of the
origination fees/transaction costs considered in the effective interest rate is presented in the line ‘Net interest income’ at
the derecognition date. The release of the credit loss allowance attached to the original asset at the date of that significant
modification as well as the credit loss allowance recognised for the new asset are presented in the line ‘Impairment result
from financial instruments’.
For financial assets measured at FVPL, irrespective of whether they are in default, the derecognition gains and losses are
included in the same line items of the statements of profit or loss as their measurement result, i.e. in ‘Gains/losses from
financial instruments measured at fair value through profit or loss’.
For debt instrument assets not measured at FVPL that are subject to contractual modifications that do not result in
derecognition, the gross carrying amount of the asset is adjusted against recognizing a modification gain or loss in profit or
loss. The modification gain or loss equals the difference between the gross carrying amount before the modification and the
present value of the cash flows based on the modified terms discounted with the original effective interest rate. In the
statements of profit or loss, the modification gain or loss is presented in the line ‘Net interest income’ if the modification
relates to financial assets in Stage 1. For financial assets in Stage 2 and 3 and POCI financial assets, the modification gain or
loss is presented in the line ‘Impairment result from financial instruments’. However, to the extent that the contractual
modification involves the Bank giving up its rights of collecting cash flows in respect of an outstanding amount of the asset,
such as waiving (part of) principal or accrued interest amount, it is treated as a write-off.
(iii) Write-offs
BCR Group writes off a financial asset or a part of it when it has no reasonable expectations of recovering the respective
cash flows. When performing the write-off, the gross carrying amount of the asset is reduced simultaneously with the
related loss allowance balance.
BCR Group has specified criteria for writing off the unrecoverable balances in its loan business.
24
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

As a general rule, the write-off can only occur after all applicable and appropriate workout measures have been exhausted
in order to recover the exposure towards the client to the largest extent possible.
Usually, write offs occurs in the following situations:
•If all possible and reasonable legal actions to achieve further recovery of the credit claim have been exhausted
and the decision about the final closing of the case is made, the remaining exposure is written-off (debt
forgiveness);
•the contractual rights of the relevant loan have been transferred to a third party, the respective exposure in
default is sold and/or assigned without recourse; upon the derecognition due to sale the gross carrying amount is
removed against the selling price and the existing credit loss allowance;
•in exceptional cases, when the value of the collateral is only minor or the marketability is not given and/or the
costs for the realization of the collateral would exceed the proceeds from the collateral.
Still, during a final restructuring agreement aiming at restoration of the financial sustainability of the customer, the Bank
may consent to conditional debt forgiveness. Usually this happens under the condition of a substantial participation from
the owners’ side (in particular equity injection from original owners and/or new investors). Also, the discount in an
insolvency proceeding is treated as a contractual (conditional) debt forgiveness.
Write-off can result from forbearance measures whereby the Bank contractually waives part of the existing balance in order
to help the customers overcome financial difficulties and thus improve the prospects of recovering the remaining loan
balance (normally this relates to going concern scenarios for corporate customers). In non-going concern scenarios with
corporate customers, write-offs of the unrecoverable exposure parts are triggered by enforcement activities such as filing or
termination of legal proceedings (bankruptcy, liquidation, court case).
Other write-off triggers may result from decisions about no enforcement due to worthlessness of the claim/collateral or
generally from assessment that the receivable is economically lost.
For retail customers, the non-recoverability, the timing and amounts of write-off crystallize during the collection process
when it becomes evident that the amount due cannot be collected, e.g. due to ongoing bankruptcy proceedings. Residual
uncollectable balances are written off after the finalization of the collection process.
f. Significant accounting judgments, assumptions and estimates
(i) SPPI assessment
The assessment of whether the contractual cash flows of financial assets give rise to cash flows that are solely payments of
principal and interest (SPPI) is subject to the application of significant judgments which rely on the guidance in IFRS 9.
These judgments are crucial in accordance with IFRS 9 classification and measurement process as they determine whether
the asset must be measured at FVPL or, depending on the business model assessment, at amortized cost or at FVOCI.
When taking into consideration specific features of loans in the business of BCR Group, significant areas of judgment are
project financing loans and benchmark test for loans with interest mismatch features.
The assessment whether the prepayment fees applied to loans can be considered as a reasonable compensation for early
terminations or prepayments is based on comparing the level of the fees with the economic costs incurred by the Bank
upon the early termination. For these purposes, BCR Group uses a quantitative test where the costs relate to the lost
interest margin and the lost interest differential due to a decrease in the interest rates upon early termination or
prepayment.
The evaluation is normally performed on a portfolio level. The adequacy of the fees can also be defended on a qualitative
basis such, as common market practice regarding level of prepayment fees and their acceptance by authorities.
For project financing loans, BCR Group assesses whether they represent basic loan agreements rather than investments in
the financed projects. In this respect credit rating, level of collateralization, existing sponsor guarantees and the extent of
equity funding of the financed projects are considered.
Interest mismatches relate mainly to floating rate agreements for which the floating base rate is contractually repriced
based on past date price (ex. loans with rate linked to 3-month Euribor and reset frequency of 3 months but the rate is
always fixed as of the last day of previous month).
For assets with interest mismatches resulting only from prior and average rates (i.e. no mismatches resulting from a tenor
different from the reset frequency), SPPI compliance is considered to be met based on a qualitative assessment if the time
lag between the fixation of the rate and the start of the interest period does not exceed one month.
For assets with interest mismatches resulting from prior and average rates (i.e. no mismatches resulting from a tenor
different from the reset frequency) with the lag between the fixation of the rate and the start of the interest period higher
than 1 month, BCR Group has developed what is called a ‘benchmark test’ to assess whether the interest mismatch feature
25
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

could result in contractual (undiscounted) cash flows that are significantly different from the (undiscounted) benchmark
cash-flows (that would arise if the time value of money element was not modified).
Apart from the interest mismatch features, the terms of this benchmark deal correspond to the asset in the test (i.e. if the
floating rate reset frequency is 3 months, then the floating rate would be the 3-month Euribor and/or no time lag exists in
the floating rate fixation).
The quantitative significance threshold is set to 5% for the cumulative cash flow ratio (ratio between the simulated cash
flow of the actual deal and the benchmark deal). If the significance thresholds are breached, the benchmark test is not
passed and the financial asset must be measured at fair value through profit or loss.
IRCC is a regulated rate mandatorily used for pricing the loans granted to individuals which was assessed as being a proxy
for the time value of money element because it provides consideration that is broadly consistent with the passage of time.
In the last years financial assets whose interest is adjusted based on meeting certain ESG-linked targets by the borrowers
(e.g. meeting specified CO2 emission targets) became part of BCR Group’s business. BCR Group has concluded that ESG-
related interest adjustments have a de minimis effect on the contractual cash flows. As a result, they do not affect the SPPI
assessment.
(ii) Business model assessment
For each SPPI-compliant financial asset at initial recognition, BCR Group must assess whether it is part of a business model where
the assets are held in order to collect contractual cash flows, to both collect the contractual cash flows and sell the assets or they are
held in other business models. As a consequence, the critical aspect in distinguishing the business models is frequency and
significance of sales of assets in the respective business model. Since asset allocation to business models is based on the initial
assessment, it may happen that in subsequent periods cash flows are realized differently than originally expected, and a different
measurement method may seem to be appropriate. In accordance with IFRS 9, such subsequent changes do not generally lead to
reclassifications or prior period error corrections in respect of existing financial assets.
The new information on how cash flows are realized may, however, indicate that the business model, and thus the measurement
method changes for newly acquired or newly originated financial assets.
At BCR Group, sales due to increases in credit risk, sales close to assets’ maturity, infrequent sales triggered by a non-recurring
event (such as changes in regulatory or tax environment, major internal reorganization or a business combination, severe liquidity
crisis, etc.) are considered as not contradicting the held to collect contractual cash flows business model. Other kinds of sales
carried out in the ‘held to collect’ business model is assessed retrospectively and if they exceed certain quantitative thresholds or
whenever it is considered necessary with regard to new expectations, BCR Group performs a prospective test. If the outcome was
that the carrying amount of assets expected to be sold over the expected life of the current business model portfolio, for reasons
other than the cases above, exceeds 10% of the carrying amount of the portfolio, any new acquisitions or originations of assets
would be classified in a different business model.
(iii) Impairment of financial instruments
The expected credit loss impairment model is inherently based on judgment since it requires assessment of significant
increases in credit risk and measurement of expected credit losses without providing detailed guidance. In respect of
significant increases in credit risk, BCR Group has determined specific assessment rules consisting of qualitative
information and quantitative thresholds. Another area of complexity relates to establishing groups of similar assets when
credit risk deterioration has to be assessed on a collective basis before specific information is available at individual
instrument level. Measurement of expected credit losses involves complex models relying on historical statistics of
probabilities of default and loss rates in case of defaults, their extrapolations in case of insufficient observations, individual
estimates of credit-adjusted cash flows and probabilities of various scenarios including forward-looking information. In
addition, the life of the instruments has to be modelled in respect of behavioral life of revolving credit facilities. The
impairment loss on loans and advances is disclosed in more detail in Note 28 Credit risk.
26
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 4 – Financial instruments held at amortized cost
Financial assets are measured at amortized cost if they are held in a business model whose objective is to collect
contractual cash flows, and their contractual cash flows are SPPI.
On the balance sheet, these assets are carried at amortized cost, i.e. the gross carrying amount net of the credit loss
allowance. They are presented under the line ‘Financial assets at amortized cost’, ‘Trade and other receivables’, and ‘Cash
and cash balances’.
Interest income on these assets is calculated by effective interest method and is included under the line ‘Interest income’
under ‘Net interest income’. Impairment gains or losses are included in the line ‘Impairment result from financial
instruments’.
At Group level, financial assets at amortized cost constitute the largest measurement category, which includes the vast
majority of loan business to customers, interbank lending business (including reverse repo transactions), deposits with
central banks, amounts in the course of settlement, trade and other receivables.
For description of financial liabilities at measured amortized cost refer to Note 17 Financial liabilities measured at
amortized costs.
14. Cash and cash equivalents
Cash and cash equivalents balances include cash in hand, claims (deposits) against central banks and credit institutions
that are repayable on demand. Repayable on demand means that they may be withdrawn at any time or with a term of
notice of only one business day or 24 hours. Mandatory minimum reserves are also shown under this item.
Starting with January 2025 according to NBR Regulation no. 5/2024, the methodology for credit institutions to maintain
mandatory minimum reserves in mandatory minimum reserve accounts, in RON and in euros, opened at the NBR, has
changed. The change implied the calculation based on balances instead of averages, the first calculation was performed
based on balances as of 31st December 2024.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Cash on hand | 3,778,145 | 3,116,586 | 3,778,146 | 3,116,586
Mandatory cash balances and other cash with central banks (i) | 7,549,267 | 7,215,740 | 7,544,578 | 7,215,733
Correspondent accounts and overnight placements with other banks | 113,506 | 264,089 | 112,830 | 263,835
Overnight placements with central bank | - | 45,826 | - | -
Cash and cash equivalents | 11,440,918 | 10,642,241 | 11,435,554 | 10,596,154

(i) The current accounts held by the Bank with National Bank of Romania ensure the compliance with minimum
mandatory reserves requirements of National Bank. Mandatory reserve rates at the end of 2025 were for RON 8%
(December 2024: 8%) and for foreign currencies 5% (December 2024: 5%). The Group can use the daily balance of these
accounts based on its liquidity needs, however it needs to maintain a minimum average balance during a certain month-
interval as per local regulatory requirements, being considered as realized mandatory reserves. All cash and cash
equivalents are not overdue, of which stage 1 RON 11.432.335 thousands and stage 2 RON 3.219 thousands, for more
details please see Note 28.
15. Financial assets at amortized cost
15.1 Debt securities
Investments in debt securities measured at amortized cost may be acquired with different business objectives (such as
fulfilling internal/external liquidity risk requirements and efficient placement of the structural liquidity surplus, strategic
positions decided by the board of directors, initiation and fostering of client relationships, substitution of loan business or
other yield enhancement activities). Their common attribute is that significant and frequent sales of such securities are not
expected. For a description of what sales are considered as compliant with the held to collect contractual cash flows
business model, see paragraph ‘Business model assessment’ in section ‘Financial instruments - Material accounting
policies’.
27
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
Debt securities | 23,258,268 | 450 | - | - | 23,258,718 | -9,992 | -4 | - | - | -9,996 | 23,248,722
General governments | 23,258,268 | 450 | - | - | 23,258,718 | -9,992 | -4 | - | - | -9,996 | 23,248,722

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
Debt securities | 20,631,560 | 640 | - | - | 20,632,200 | -8,880 | -5 | - | - | -8,885 | 20,623,315
General governments | 20,631,560 | 640 | - | - | 20,632,200 | -8,880 | -5 | - | - | -8,885 | 20,623,315

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
Debt securities | 23,124,735 | 450 | - | - | 23,125,185 | -9,936 | -4 | - | - | -9,940 | 23,115,245
General governments | 23,124,735 | 450 | - | - | 23,125,185 | -9,936 | -4 | - | - | -9,940 | 23,115,245

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
Debt securities | 20,505,245 | 640 | - | - | 20,505,885 | -8,827 | -5 | - | - | -8,832 | 20,497,053
General governments | 20,505,245 | 640 | - | - | 20,505,885 | -8,827 | -5 | - | - | -8,832 | 20,497,053

The year-end total gross carrying amount of AC debt securities that were initially recognized (purchased) during the
reporting period and not fully derecognized by 31 December 2025 amounts to RON 5,211,078 thousands at Group level,
RON 5,203,200 thousands for the Bank (2024: RON 5,176,996 thousands for the Group, RON 5,132,423 thousands for the
Bank.) The gross carrying amount (GCA) of amortized cost (AC) debt securities that were held on 1 January 2025 and fully
derecognized during the reporting period amounts to RON 3,553,503 thousands at Group level, RON 3,553,503 thousands
for the Bank (2024: RON 1,979,780 thousands for the Group, RON 1,941,312 thousands for the Bank).
Impact from sale of debt securities is presented in Note 7 Gain/losses from derecognition of financial assets at amortized
cost.
28
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

15.2 Loans and advances to banks

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
Loans and advances to banks | 5,572,304 | - | - | - | 5,572,304 | -196 | - | - | - | -196 | 5,572,108
Credit institutions | 5,572,304 | - | - | - | 5,572,304 | -196 | - | - | - | -196 | 5,572,108

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
Loans and advances to banks | 6,004,786 | - | - | - | 6,004,786 | -57 | - | - | - | -57 | 6,004,729
Credit institutions | 6,004,786 | - | - | - | 6,004,786 | -57 | - | - | - | -57 | 6,004,729

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
Loans and advances to banks | 5,567,071 | - | - | - | 5,567,071 | -197 | - | - | - | -197 | 5,566,874
Credit institutions | 5,567,071 | - | - | - | 5,567,071 | -197 | - | - | - | -197 | 5,566,874

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
Loans and advances to banks | 5,960,867 | - | - | - | 5,960,867 | -41 | - | - | - | -41 | 5,960,826
Credit institutions | 5,960,867 | - | - | - | 5,960,867 | -41 | - | - | - | -41 | 5,960,826

29
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

15.3 Loans and advances to customers

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI* | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
Loans and advances to customers | 62,294,662 | 7,570,584 | 1,769,823 | 250,757 | 71,885,826 | -426,140 | -756,351 | -1,353,970 | -15,030 | -2,551,491 | 69,334,335
General governments | 9,920,136 | 249,429 | 168 | 4,628 | 10,174,361 | -6,386 | -8,947 | -168 | -9 | -15,510 | 10,158,851
Other financial corporations | 837,846 | 519,162 | 718 | - | 1,357,726 | -2,678 | -14,316 | -716 | - | -17,710 | 1,340,016
Non-financial corporations | 19,733,697 | 3,790,891 | 879,123 | 117,827 | 24,521,538 | -209,814 | -378,573 | -659,780 | -361 | -1,248,528 | 23,273,010
Households | 31,802,983 | 3,011,102 | 889,814 | 128,302 | 35,832,201 | -207,262 | -354,515 | -693,306 | -14,660 | -1,269,743 | 34,562,458

*The increase in POCI compared to previous year is related to Agri business, part of Natural resources & Commodities, and was determined mainly by a single debtor.

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
Loans and advances to customers | 54,827,405 | 9,732,261 | 1,648,431 | 155,447 | 66,363,544 | -432,363 | -1,067,655 | -1,424,806 | -28,627 | -2,953,451 | 63,410,093
General governments | 9,856,205 | 372,147 | 1,280 | 5,583 | 10,235,215 | -9,925 | -39,334 | -687 | -15 | -49,961 | 10,185,254
Other financial corporations | 1,198,013 | 198,959 | 870 | - | 1,397,842 | -6,526 | -7,953 | -776 | - | -15,255 | 1,382,587
Non-financial corporations | 16,803,841 | 5,200,841 | 649,788 | 15,170 | 22,669,640 | -243,586 | -602,003 | -506,031 | -2,295 | -1,353,915 | 21,315,725
Households | 26,969,346 | 3,960,314 | 996,493 | 134,694 | 32,060,847 | -172,326 | -418,365 | -917,312 | -26,317 | -1,534,320 | 30,526,527

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI* | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
Loans and advances to customers | 65,207,900 | 7,009,657 | 1,690,524 | 250,757 | 74,158,838 | -408,096 | -734,072 | -1,317,771 | -15,030 | -2,474,969 | 71,683,869
General governments | 9,920,136 | 249,429 | 168 | 4,628 | 10,174,361 | -6,386 | -8,947 | -168 | -9 | -15,510 | 10,158,851
Other financial corporations | 5,558,572 | 518,186 | 710 | - | 6,077,468 | -7,126 | -14,273 | -710 | - | -22,109 | 6,055,359
Non-financial corporations | 17,953,619 | 3,242,778 | 808,271 | 117,827 | 22,122,495 | -187,673 | -357,139 | -631,034 | -361 | -1,176,207 | 20,946,288
Households | 31,775,573 | 2,999,264 | 881,375 | 128,302 | 35,784,514 | -206,911 | -353,713 | -685,859 | -14,660 | -1,261,143 | 34,523,371

*The increase in POCI compared to previous year is related to Agri business, part of Natural resources & Commodities, and was determined mainly by a single debtor.

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances |  | Carrying amount
Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
Loans and advances to customers | 57,320,766 | 9,336,176 | 1,580,235 | 155,447 | 68,392,624 | -411,688 | -1,049,491 | -1,388,161 | -28,627 | -2,877,967 | 65,514,657
General governments | 9,856,205 | 372,147 | 1,280 | 5,583 | 10,235,215 | -9,925 | -39,334 | -687 | -15 | -49,961 | 10,185,254
Other financial corporations | 5,458,365 | 197,683 | 724 | - | 5,656,772 | -9,401 | -7,920 | -720 | - | -18,041 | 5,638,731
Non-financial corporations | 15,063,074 | 4,811,417 | 591,603 | 15,170 | 20,481,264 | -220,314 | -584,419 | -477,777 | -2,295 | -1,284,805 | 19,196,459
Households | 26,943,122 | 3,954,929 | 986,628 | 134,694 | 32,019,373 | -172,048 | -417,818 | -908,977 | -26,317 | -1,525,160 | 30,494,213

30
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The movement in gross exposure is presented below

|  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Thereof arising from | Exchange- rate and other changes (+/-) | Closing Balance
out of which write-offs | out of which repayments
Loans and advances to banks | 6,004,787 | 5,567,059 | -5,999,542 | - | -5,999,542 | - | 5,572,304
Loans and advances to customers | 66,363,544 | 22,081,316 | -16,777,426 | -360,122 | -14,088,997 | 218,392 | 71,885,826
Total | 72,368,331 | 27,648,375 | -22,776,968 | -360,122 | -20,088,539 | 218,392 | 77,458,130

|  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Thereof arising from | Exchange- rate and other changes (+/-) | Closing Balance
out of which write-offs | out of which repayments
Loans and advances to banks | 2,125,779 | 5,942,887 | -2,063,879 | - | -2,063,879 | - | 6,004,787
Loans and advances to customers | 58,025,706 | 18,799,823 | -10,461,150 | -152,454 | -9,274,956 | -835 | 66,363,544
Total | 60,151,485 | 24,742,710 | -12,525,029 | -152,454 | -11,338,835 | -835 | 72,368,331

|  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Thereof arising from | Exchange- rate and other changes (+/-) | Closing Balance
out of which write-offs | out of which repayments
Loans and advances to banks | 5,960,867 | 5,567,059 | -5,960,856 | - | -5,960,856 | - | 5,567,070
Loans and advances to customers | 68,392,624 | 21,244,552 | -15,696,730 | -322,819 | -13,045,607 | 218,392 | 74,158,838
Total | 74,353,491 | 26,811,611 | -21,657,586 | -322,819 | -19,006,463 | 218,392 | 79,725,908

|  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Thereof arising from | Exchange- rate and other changes (+/-) | Closing Balance
out of which write-offs | out of which repayments
Loans and advances to banks | 2,142,955 | 5,902,870 | -2,084,958 | - | -2,084,958 | - | 5,960,867
Loans and advances to customers | 59,727,818 | 18,330,501 | -9,664,860 | -96,173 | -8,478,731 | -835 | 68,392,624
Total | 61,870,773 | 24,233,371 | -11,749,818 | -96,173 | -10,563,689 | -835 | 74,353,491

In 2025 and 2024, the Group and the Bank derecognized a part of non-performing loan portfolio, as follows:

|  |  | Group
in RON thousands | 31.12.2025 | 31.12.2024
Transfer of loans | Gross carrying amount | Credit loss allowances | Gross carrying amount | Credit loss allowances
Sale on balance loans | 338,270 | 338,270 | 69,009 | 69,009
Write off on balance loans and trade and other receivables | 400,106 | 400,106 | 155,041 | 155,041
Total exposure reduction from sale and write offs | 738,376 | 738,376 | 224,050 | 224,050

|  |  |  | Bank
in RON thousands | 31.12.2025 | 31.12.2024
Transfer of loans | Gross carrying amount | Credit loss allowances | Gross carrying amount | Credit loss allowances
Sale on balance loans | 338,270 | 338,270 | 68,941 | 68,941
Write off on balance loans and trade and other receivables | 344,150 | 344,150 | 96,174 | 96,174
Total exposure reduction from sale and write offs | 682,420 | 682,420 | 165,115 | 165,115

31
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

16. Trade and other receivables
The main items under ‘Trade and other receivables’ position are represented by factoring assets. Recourse factoring is
initially recognized against the Seller at the date when the Bank becomes contractually bound to the terms and conditions
of the underlying factoring contract with the seller (typically, the sign-up date of that underlying factoring contract).
In case of non-recourse factoring, the related assets are recognized against the underlying buyers at the dates when the
Bank acquires from the seller the right to collect from the underlying buyers the contractual cash-flows of the related
underlying invoices (typically, the date of a down-payment required by the seller).
Regarding the timing and amount of revenue recognition, the IFRS 15 requirements are applied in case of all fees related to
non-recourse factoring and in case of the fees derived from recourse factoring which are not part of the effective interest
rate.

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Gross carrying amount | Credit loss allowances | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
General governments | 5,495 | 1,624 | 46 | - | 7,165 | -8 | -14 | -46 | - | -68 | 7,097
Credit institutions | 44,853 | 82,220 | - | - | 127,073 | -58 | -185 | - | - | -243 | 126,830
Other financial corporations | 187,211 | 60,147 | 36 | - | 247,394 | -1,331 | -2,229 | -36 | - | -3,596 | 243,798
Non-financial corporations | 515,940 | 42,668 | 26,358 | 660 | 585,626 | -4,023 | -1,933 | -22,477 | -660 | -29,093 | 556,533
Households | 6,214 | 3,273 | 5,468 | 75 | 15,030 | -110 | -231 | -5,340 | -66 | -5,747 | 9,283
Total | 759,713 | 189,932 | 31,908 | 735 | 982,288 | -5,530 | -4,592 | -27,899 | -726 | -38,747 | 943,541

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Gross carrying amount | Credit loss allowances | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
General governments | 45,242 | 186 | 91 | 125 | 45,644 | -37 | -10 | -91 | -125 | -263 | 45,381
Credit institutions | 228,205 | 12 | - | 110 | 228,327 | -126 | -4 | - | - | -130 | 228,197
Other financial corporations | 128,179 | 25,883 | 34 | - | 154,096 | -798 | -1,272 | -27 | - | -2,097 | 151,999
Non-financial corporations | 417,589 | 45,829 | 19,266 | 467 | 483,151 | -5,978 | -2,719 | -16,053 | -467 | -25,217 | 457,934
Households | 115,988 | 3,682 | 6,931 | 69 | 126,670 | -99 | -216 | -6,871 | -59 | -7,245 | 119,425
Total | 935,203 | 75,592 | 26,322 | 771 | 1,037,888 | -7,038 | -4,221 | -23,042 | -651 | -34,952 | 1,002,936

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
General governments | 5,076 | 1,621 | 46 | - | 6,743 | -8 | -13 | -46 | - | -67 | 6,676
Credit institutions | 44,853 | 82,301 | - | - | 127,154 | -58 | -185 | - | - | -243 | 126,911
Other financial corporations | 187,047 | 63,667 | 3 | - | 250,717 | -1,328 | -2,229 | -3 | - | -3,560 | 247,157
Non-financial corporations | 515,960 | 39,788 | 14,864 | 660 | 571,272 | -3,950 | -1,870 | -14,864 | -660 | -21,344 | 549,928
Households | 6,071 | 3,028 | 5,207 | 75 | 14,381 | -105 | -226 | -5,207 | -66 | -5,604 | 8,777
Total | 759,007 | 190,405 | 20,120 | 735 | 970,267 | -5,449 | -4,523 | -20,120 | -726 | -30,818 | 939,449

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
General governments | 44,838 | 184 | 91 | 125 | 45,238 | -37 | -10 | -91 | -125 | -263 | 44,975
Credit institutions | 228,205 | 12 | - | 110 | 228,327 | -126 | -4 | - | -110 | -240 | 228,087
Other financial corporations | 128,693 | 25,881 | 11 | - | 154,585 | -742 | -1,272 | -11 | - | -2,025 | 152,560
Non-financial corporations | 416,365 | 42,947 | 6,984 | 467 | 466,763 | -5,899 | -2,646 | -6,984 | -467 | -15,996 | 450,767
Households | 115,698 | 3,528 | 6,797 | 69 | 126,092 | -76 | -211 | -6,797 | -59 | -7,143 | 118,949
Total | 933,799 | 72,552 | 13,883 | 771 | 1,021,005 | -6,880 | -4,143 | -13,883 | -761 | -25,667 | 995,338

The year-end total gross carrying amount of trade receivables that were initially recognized (purchased) during the year
2025 and not fully derecognized by 31 December 2025 amounts to RON 647,383 thousands (2024: RON 541,408 thousands)
at Group level, RON 633,791 thousands (2024: RON 531,081 thousands) at Bank level. The gross carrying amount of trade
receivables that were held on 1 January 2025 and derecognized during the year 2025 amounts to RON 109,528 thousand at
Group level (2024: RON 43,776 thousand), RON 97,742 thousands (2024: RON 43,435 thousands) at Bank level.
32
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

17. Financial liabilities measured at amortized cost
The financial liabilities measured at amortized cost are further broken down into: ‘Deposits from banks’ ‘Borrowings and
financing lines’, ‘Deposits from customers’, ‘Debt securities issued’ and ‘Other financial liabilities’.
Interest expenses incurred are calculated using effective interest method are reported in the line item ‘Interest expenses’
under ‘Net interest income’ in the statements of profit or loss. Gains and losses from derecognition (mainly repurchase) are
reported under the line item ‘Other gains/losses from derecognition of financial instruments not measured at fair value
through profit or loss’.
17.1 Deposits from banks

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Current accounts / overnight deposits | 824,719 | 664,852 | 763,721 | 528,440
Term deposits from other banks | 547,524 | 192,876 | 641,902 | 331,539
Repurchase agreements | 1,367,992 | 316,998 | 1,856,629 | 826,033
Deposits from banks | 2,740,235 | 1,174,726 | 3,262,252 | 1,686,012
Borrowings and financing lines | 439,197 | 533,268 | 108,463 | 127,307
Total | 3,179,432 | 1,707,994 | 3,370,715 | 1,813,319

17.2 Borrowings and financing lines
Maturity of financing lines is on September 2030, the interest rates are fixed or variable in a range between 2.01% and
5.14%.

Liabilities from financing activities | Group
in RON thousands | Other borrowed funds
Borrowings at 01.01.2024 | 650,435
Cash flow | -149,302
Foreign exchange adjustments | -92
Accrued interest | 32,227
Borrowings at 31.12.2024 | 533,268
Cash flow | -127,288
Foreign exchange adjustments | 13,007
Accrued interest | 20,210
Borrowings at 31.12.2025 | 439,197

Liabilities from financing activities | Bank
in RON thousands | Other borrowed funds
Borrowings at 01.01.2024 | 152,934
Cash flow | -33,538
Foreign exchange adjustments | -42
Accrued interest | 7,953
Borrowings at 31.12.2024 | 127,307
Cash flow | -27,012
Foreign exchange adjustments | 2,832
Accrued interest | 5,336
Borrowings at 31.12.2025 | 108,463

33
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

17.3 Debt securities issued

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Subordinated debt securities issued | 1,281,647 | 1,251,505 | 1,281,647 | 1,251,505
Senior non-preferred bonds | 12,339,232 | 8,554,268 | 12,339,232 | 8,554,268
Other debt securities issued | 625,482 | 601,257 | 625,482 | 601,257
Debt securities issued | 14,246,361 | 10,407,030 | 14,246,361 | 10,407,030

| Bank
in RON thousands | 2025 | 2024
Debt securities issued at beginning of period | 10,407,030 | 10,170,143
Cash flow | 3,705,250 | 223,835
Foreign exchange adjustments | 134,081 | 13,052
Debt securities issued at end of period | 14,246,361 | 10,407,030

BCR’s current debt issuance programme implemented in 2013 is a programme for issuing debt instruments in various currencies
and maturities with a limited range of interest rate structures.
In April 2018, BCR’s Extraordinary Shareholders General Meeting has approved the extension of the Debt Issuing Programme
(DIP) for a period of 10 years, as well as new bond structures (e.g. subordinated notes, Minimum requirement for eligible liabilities
(MREL) notes). In 2019, the debt issuance programme has been integrated into the Multi Issuer Programme (MIP) arranged by
Erste Group Bank and is approved by Financial Market Authority (Austria) and listed on the Vienna Stock Exchange.
In 2025, 3 bond issues (2024: 1) were executed under the MIP, a Senior Preferred bond with a volume of RON 31 million (2024:
EUR 45 million), listed on the Vienna Stock Exchange, a RON 1.125 million Senior Non Preferred bond with listed on the
Bucharest Stock Exchange, and a EUR 500 million Senior Non Preferred bond listed on the Vienna Stock Exchange, were listed on
the Bucharest Stock Exchange.
As of 31 December 2025, BCR had 14 bond issues outstanding under the Multi Issuer Programme, in total amount of RON 12.68
billion, out of which 10 bonds listed on the Bucharest Stock Exchange (www.bvb.ro), 6 bonds issues listed in the Vienna Stock
Exchange (https://www.wienerborse.at/en/search/?q=BCR).
The proceeds of the Green Bond are used to finance and/or refinance the loans and investments of the Issuer dedicated to the
financing of Eligible Green Projects (i.e. (i) Green Buildings (Residential), (ii) Green Buildings (Commercial) and (iii) Renewable
Energy) with environmental benefits ("Green Loans") in accordance with the Erste Group Sustainable Finance Framework dated
April 2021 (as amended and/or replaced periodically). Green Loans are identified and reported in accordance with Sustainable
Finance Guidelines of Erste Group, available to define and identify assets and investments that can be considered as
environmental and/or social eligible to mobilize funds for a transition towards a low carbon economy. Loans are classified and
measured in accordance with Financial assets measured at amortised cost policy.
The summary of the bonds is presented below:

ISIN | Issue date | Maturity date | Category | Type | Currency | Issue value | Paying Agent | Listing Venue
ROEAZVK5DFP8 | 16/12/2019 | 16/12/2026 | SENIOR | NON-PREFERRED | RON | 600,000,000 | BCR | BVB
RO1AQREPLMW7 | 21/5/2021 | 21/5/2028 | SENIOR | NON-PREFERRED | RON | 1,000,000,000 | BCR | BVB
ROMU2ND4VHC6 | 14/10/2021 | 14/10/2028 | SENIOR | PREFERRED | RON | 500,000,000 | BCR | BVB, VSE
ROPQT4NGMLM3 | 9/12/2021 | 9/12/2028 | SENIOR | NON-PREFERRED | RON | 600,000,000 | BCR | BVB
RO451CMZH2K1 | 31/3/2022 | 31/3/2027 | SENIOR | NON-PREFERRED | RON | 351,500,000 | BCR | BVB
ROPC9F84ZSG4 | 14/6/2022 | 14/6/2027 | SENIOR | NON-PREFERRED | RON | 702,000,000 | BCR | BVB
ROGJ5KD9L1W9 | 6/10/2022 | 6/10/2028 | SENIOR | NON-PREFERRED | RON | 334,000,000 | BCR | BVB
AT0000A32YQ4 | 7/3/2023 | 15/12/2029 | SENIOR | PREFERRED | USD | 20,000,000 | EGB | VSE
AT0000A34CN3 | 19/5/2023 | 19/5/2027 | SENIOR | NON-PREFFERED | EUR | 700,000,000 | EGB | VSE, BVB
ROM2PE1DEUG5 | 11/12/2023 | 11/12/2029 | SENIOR | NON-PREFERRED | RON | 1,000,000,000 | BCR | BVB
AT0000A3DBN9 | 14/6/2024 | 14/1/2028 | SENIOR | NON-PREFERRED | EUR | 45,000,000 | EGB | VSE
AT0000A3K3M8 | 13/3/2025 | 13/3/2031 | SENIOR | PREFERRED | RON | 31,000,000 | EGB | VSE
RODKE0XXSB02 | 11/11/2025 | 11/11/2031 | SENIOR | NON-PREFERRED | RON | 1,125,000,000 | BCR | BVB
AT0000A3QMW9 | 25/11/2025 | 25/11/2031 | SENIOR | NON-PREFERRED | EUR | 500,000,000 | EGB | VSE, BVB

34
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

17.4 Deposits from customers

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Overnight deposits | 53,641,223 | 50,738,116 | 53,923,062 | 50,951,041
Savings deposits | 6,021,879 | 4,256,125 | 6,021,879 | 4,256,067
Other financial corporations | 29,495 | 40,602 | 29,495 | 40,602
Non-financial corporations | 504,686 | 482,019 | 504,686 | 482,019
Households | 5,487,698 | 3,733,504 | 5,487,698 | 3,733,446
Non-savings deposits | 47,619,344 | 46,481,991 | 47,901,183 | 46,694,974
General governments | 3,411,167 | 6,014,999 | 3,411,167 | 6,014,999
Other financial corporations | 1,522,568 | 1,266,016 | 1,804,208 | 1,477,626
Non-financial corporations | 18,090,008 | 15,060,950 | 18,090,207 | 15,062,324
Households | 24,595,601 | 24,140,026 | 24,595,601 | 24,140,025
Term deposits | 39,442,883 | 40,269,724 | 39,537,239 | 40,330,354
Deposits with agreed maturity | 39,442,883 | 40,269,724 | 39,537,239 | 40,330,354
Savings deposits | 252,241 | 323,603 | 217,649 | 235,062
Households | 252,241 | 323,603 | 217,649 | 235,062
Non-savings deposits | 39,190,642 | 39,946,121 | 39,319,590 | 40,095,292
General governments | 1,867,444 | 7,812,908 | 1,867,444 | 7,812,908
Other financial corporations | 1,131,190 | 726,658 | 1,188,802 | 807,767
Non-financial corporations | 15,298,204 | 11,033,398 | 15,369,540 | 11,101,460
Households | 20,893,804 | 20,373,157 | 20,893,804 | 20,373,157
Deposits from customers | 93,084,106 | 91,007,840 | 93,460,301 | 91,281,395
General governments | 5,278,611 | 13,827,907 | 5,278,611 | 13,827,907
Other financial corporations | 2,683,253 | 2,033,276 | 3,022,505 | 2,325,995
Non-financial corporations | 33,892,898 | 26,576,367 | 33,964,433 | 26,645,803
Households | 51,229,344 | 48,570,290 | 51,194,752 | 48,481,690

17.5 Other financial liabilities

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Intrabanking settlement liabilities | 246,115 | 314,147 | 247,385 | 315,956
Settlement liabilities due to clients | 484,640 | 347,609 | 461,578 | 344,396
Client accounts for securities transactions | 480,381 | 154,730 | 480,381 | 154,730
Financial liabilities - suppliers | 429,195 | 377,238 | 398,435 | 343,219
Other financial liabilities | 3,657 | 88,708 | 3,657 | 88,708
Total other financial liabilities | 1,643,988 | 1,282,432 | 1,591,436 | 1,247,009

35
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 5 – Financial instruments at fair value
Financial instruments at fair value through profit or loss
Financial assets whose contractual cash flows are not considered as SPPI are automatically measured at FVPL.
Other source of FVPL measurement relates to financial assets that are part of residual business models, i.e., they are
neither held to collect contractual cash flows nor held to either collect contractual cash flows or sell the assets. These
financial assets are generally expected to be sold before their maturity or they are managed and their performance is
evaluated on a fair value basis.
In the statements of financial position, debt instrument financial assets measured at FVPL are presented as 'Financial
assets held for trading’, sub-items ‘Debt securities held for trading”. Financial assets are mandatorily measured at fair value
through profit or loss either because their contractual cash flows are not SPPI or they are held as part of residual business
models that are other than held for trading.
In the statements of profit or loss, the profit or loss effects of non-derivative financial assets measured at FVPL are split into
dividend income and fair value gains and losses to determine the realized income. The dividend income on equity
instruments is presented in the line ‘Dividend income’. The fair value gains or losses are calculated net of the dividend
income. The transaction costs and origination fees are immediately recognized in profit or loss. These are reported in the
line ‘Net trading result’ for financial assets held for trading and in the line ‘Gains/losses from non-trading financial
instruments mandatorily measured at fair value through profit or loss’ in case of non-trading financial assets at FVPL.
Financial liabilities at FVPL consist of financial liabilities held for trading.
The gains or losses on financial liabilities held for trading are reported in the line ‘Net trading result’ in the statements of
profit or loss.
18. Derivatives financial instruments held for trading
Derivative financial instruments are used by BCR Group to manage exposures to interest rates, foreign currencies and
other market price risks. Derivatives used by BCR Group include mainly interest rate swaps, futures, forward rate
agreements, interest rate options, currency swaps and currency options as well as credit default swaps.
Derivative financial instruments are carried at fair value (dirty price) on the balance sheet. Derivatives are carried as assets
if their fair value is positive and as liabilities if their fair value is negative.
Derivatives – held for trading are those that are not designated as hedging instruments for hedge accounting. They are
presented in the line item ‘Derivatives’ under the heading ‘Financial assets/Financial liabilities held for trading’. All kinds
of non-hedging derivatives without regard to their internal classification, i.e. both derivatives held in the trading book and
banking book, are presented in this line item.
Changes in the fair value (clean price) of derivatives – held for trading are reported in the statements of profit or loss in the
line item ‘Net trading result’.
Derivatives held for trading

|  |  |  |  |  | Group
in RON thousands | Notional amount | 2025 | Notional amount | 2024
Fair value | Fair value
Positive | Negative | Positive | Negative
Derivatives held in Trading book | 18,946,817 | 100,954 | 158,716 | 21,573,006 | 132,934 | 130,836
Interest rate instruments and related derivatives | 10,369,059 | 77,079 | 110,126 | 9,393,407 | 98,721 | 104,010
Foreign exchange trading and related derivatives | 8,577,758 | 23,875 | 48,590 | 12,179,599 | 34,213 | 26,826
Derivatives held in Banking Book | 2,591,808 | 1,645 | 6,626 | 3,307,662 | 54,872 | 2,904
Foreign exchange trading and related derivatives | 2,591,808 | 1,645 | 6,626 | 3,307,662 | 54,872 | 2,904
Total | 21,538,625 | 102,599 | 165,342 | 24,880,668 | 187,806 | 133,740

36
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  | Bank
in RON thousands | Notional amount | 2025 | Notional amount | 2024
Fair value | Fair value
Positive | Negative | Positive | Negative
Derivatives held in Trading book | 18,946,817 | 100,954 | 158,716 | 21,573,006 | 132,934 | 130,836
Interest rate instruments and related derivatives | 10,369,059 | 77,079 | 110,126 | 9,393,407 | 98,721 | 104,010
Foreign exchange trading and related derivatives | 8,577,758 | 23,875 | 48,590 | 12,179,599 | 34,213 | 26,826
Derivatives held in Banking Book | 2,591,808 | 1,645 | 6,626 | 3,307,662 | 54,872 | 2,904
Foreign exchange trading and related derivatives | 2,591,808 | 1,645 | 6,626 | 3,307,662 | 54,872 | 2,904
Total | 21,538,625 | 102,599 | 165,342 | 24,880,668 | 187,806 | 133,740

19. Other financial assets held for trading

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Debt securities | 3,227,165 | 1,724,973 | 3,227,165 | 1,724,973
General governments (i) | 3,227,165 | 1,724,973 | 3,227,165 | 1,724,973
Debt securities held for trading | 3,227,165 | 1,724,973 | 3,227,165 | 1,724,973

(i) Debt securities include treasury bills and bonds denominated in RON. The amount increased at the end of 2025 due to
acquisition of investments in treasury bills and bonds, both issued by Ministry of Public Finance.
20. Non-trading financial assets mandatorily at fair value through profit or loss

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Mandatorily at fair value | Mandatorily at fair value
Equity instruments | 92,124 | 75,345 | 92,124 | 75,345
Debt securities | 5,490 | 12,517 | 5,490 | 12,517
Other financial corporations | 5,490 | 12,517 | 5,490 | 12,517
Non-trading financial assets mandatorily at fair value through profit or loss | 97,614 | 87,862 | 97,614 | 87,862

21. Financial assets at fair value through other comprehensive income
Debt instrument financial assets are measured at fair value through other comprehensive income (FVOCI) if their contractual cash
flows are SPPI-compliant and they are held within a business model whose objective is achieved by both to collect contractual cash
flows and sell the assets (they relate to various business objectives such as fulfilling internal/external liquidity risk requirements
and efficient placement of the structural liquidity surplus, strategic positions decided by the Management Board, initiation and
fostering of client relationships, substitution of loan business or other yield-enhancement activities). In the statements of financial
position, they are included as ‘Debt securities’ under the line ‘Financial asset at fair value through other comprehensive income’.
Interest income on these assets is calculated using the effective interest method and is included under the line ‘Net interest income’
in the statements of profit or loss. Impairment gains and losses are recognised in profit or loss in the line ‘Net impairment loss on
financial instruments’. As a result, the measurement impact recognised in profit or loss is the same as for financial assets measured
at amortized cost.
The difference between the fair value at which the assets are carried in the statements of financial position and the amortized cost
component is recognised as accumulated OCI in equity specifically under ‘Fair value reserve’ in the statements of changes in
equity. The change for the period is reported as OCI in the statements of other comprehensive income in the line ‘Debt
instruments at fair value through other comprehensive income’. When the debt financial asset is derecognized, the amount
previously accumulated in OCI is reclassified to profit or loss and reported under the line ‘Other gains/losses from derecognition of
financial instruments not measured at fair value through profit or loss’.
The common attribute for investments in debt instruments at FVOCI is that an active yield optimization via sales is integral to
achieving the objectives. The sales are carried out in order to optimize the liquidity position or to realize the fair value gains or
losses. As a result, the business objectives are achieved through both collecting contractual cash flows and sales of the securities.
37
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Gross carrying amount | Credit loss allowances | Accumulated other fair value changes | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |  |
Debt securities | 13,024,305 | - | - | 13,024,305 | -5,807 | - | - | -5,807 | 266,186 | 13,290,491
General governments | 11,896,769 | - | - | 11,896,769 | -5,082 | - | - | -5,082 | 246,854 | 12,143,623
Credit institutions | 1,127,536 | - | - | 1,127,536 | -725 | - | - | -725 | 19,332 | 1,146,868
Total | 13,024,305 | - | - | 13,024,305 | -5,807 | - | - | -5,807 | 266,186 | 13,290,491

|  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Gross carrying amount | Credit loss allowances | Accumulated other fair value changes | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |  |
Debt securities | 12,719,382 | - | - | 12,719,382 | -5,434 | - | - | -5,434 | 48,333 | 12,767,715
General governments | 11,885,062 | - | - | 11,885,062 | -5,065 | - | - | -5,065 | 40,900 | 11,925,962
Credit institutions | 834,320 | - | - | 834,320 | -369 | - | - | -369 | 7,433 | 841,753
Total | 12,719,382 | - | - | 12,719,382 | -5,434 | - | - | -5,434 | 48,333 | 12,767,715

|  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances | Accumulated other fair value changes | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |  |
Debt securities | 13,024,305 | - | - | 13,024,305 | -5,809 | - | - | -5,809 | 266,186 | 13,290,491
General governments | 11,896,769 | - | - | 11,896,769 | -5,082 | - | - | -5,082 | 246,856 | 12,143,625
Credit institutions | 1,127,536 | - | - | 1,127,536 | -727 | - | - | -727 | 19,330 | 1,146,866
Total | 13,024,305 | - | - | 13,024,305 | -5,809 | - | - | -5,809 | 266,186 | 13,290,491

|  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances | Accumulated other fair value changes | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |  |
Debt securities | 12,719,382 | - | - | 12,719,382 | -5,434 | - | - | -5,434 | 48,333 | 12,767,715
General governments | 11,885,062 | - | - | 11,885,062 | -5,065 | - | - | -5,065 | 40,900 | 11,925,962
Credit institutions | 834,320 | - | - | 834,320 | -369 | - | - | -369 | 7,433 | 841,753
Total | 12,719,382 | - | - | 12,719,382 | -5,434 | - | - | -5,434 | 48,333 | 12,767,715

The year-end total gross carrying amount of FVOCI debt securities that were initially recognized (purchased) during the year 2025
and not fully derecognized by 31 December 2025 amounts to RON 2,723,327 thousands (2024: RON 4,600,862 thousands) at
Group level, RON 2,723,327 thousands (2024: RON 4,600,862 thousands) at Bank level. The gross carrying amount of FVOCI debt
securities that were held on 1 January 2025 and derecognized during the year 2025 amounts to RON 2,484,726 thousand at Group
level (2024: RON 1,992,154 thousand), RON 2,484,726 thousands (2024: RON 1,992,154 thousands) at Bank level.
38
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 6 – Financial instruments – other disclosure matters
22. Securities

|  |  |  |  |  |  |  | Group
| 2025 | 2024
| Financial Assets | Financial Assets
in RON thousands | Financial assets at amortized cost | Trading financial assets | Financial assets mandatorily measured at fair value through profit or loss | Financial assets at fair value through other comprehensive income | Financial assets at amortized cost | Trading financial assets | Financial assets mandatorily measured at fair value through profit or loss | Financial assets at fair value through other comprehensive income
Bonds and other interest-bearing securities | 23,248,722 | 3,227,165 | 5,490 | 13,290,491 | 20,623,315 | 1,724,973 | 12,517 | 12,767,715
Listed | 22,191,255 | 1,826,453 | - | 10,205,933 | 17,987,558 | 561,837 | - | 9,305,444
Unlisted | 1,057,467 | 1,400,712 | 5,490 | 3,084,558 | 2,635,757 | 1,163,136 | 12,517 | 3,462,271
Equity related securities | - | - | 92,124 | - | - | - | 75,345 | -
Listed | - | - | 6,841 | - | - | - | 6,549 | -
Unlisted | - | - | 85,283 | - | - | - | 68,796 | -
Total | 23,248,722 | 3,227,165 | 97,614 | 13,290,491 | 20,623,315 | 1,724,973 | 87,862 | 12,767,715

|  |  |  |  |  |  |  | Bank
| 2025 | 2024
| Financial Assets | Financial Assets
in RON thousands | Financial assets at amortized cost | Trading financial assets | Financial assets mandatorily measured at fair value through profit or loss | Financial assets at fair value through other comprehensive income | Financial assets at amortized cost | Trading financial assets | Financial assets mandatorily measured at fair value through profit or loss | Financial assets at fair value through other comprehensive income
Bonds and other interest-bearing securities | 23,115,245 | 3,227,165 | 5,490 | 13,290,491 | 20,497,053 | 1,724,973 | 12,517 | 12,767,715
Listed | 22,057,778 | 1,826,453 | - | 10,205,934 | 17,861,296 | 561,837 | - | 9,305,444
Unlisted | 1,057,467 | 1,400,712 | 5,490 | 3,084,557 | 2,635,757 | 1,163,136 | 12,517 | 3,462,271
Equity related securities | - | - | 92,124 | - | - | - | 75,345 | -
Listed | - | - | 6,841 | - | - | - | 6,549 | -
Unlisted | - | - | 85,283 | - | - | - | 68,796 | -
Total | 23,115,245 | 3,227,165 | 97,614 | 13,290,491 | 20,497,053 | 1,724,973 | 87,862 | 12,767,715

23. Fair value of financial assets and liabilities
Financial assets and financial liabilities measured at fair value are categorized under the three levels of the IFRS fair value
hierarchy.
For financial instruments not listed in an active market, the fair value is determined by using appropriate valuation
techniques. Valuation techniques include pricing models or discounted cash flow techniques. Where discounted cash flow
techniques are used, estimated future cash flows are based on management’s best estimates and the discount rate is market
related rate at the statements of financial position date for an instrument with similar terms and conditions. Where pricing
models are used, inputs are based on market related measures at the statements of financial position date. Where a fair
value cannot reliably be estimated, unquoted equity instruments e.g., investments in subsidiaries (see note 40) that do not
have a quoted market price in an active market are measured at cost and periodically tested for impairment.
The fair value is best evidenced by a quoted market price if such exists. Credit Value Adjustment/Debt Value Adjustment is
included in the fair value of derivatives, not representing a significant amount both at 31 December 2025 and 31 December
2024.
39
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Level 1 of the fair value hierarchy
The fair value of financial instruments assigned to level 1 of the fair value hierarchy is determined based on quoted prices
in active markets for identical financial assets and liabilities. More particular, the evaluated fair value can qualify as a level
1 input if transactions occur with sufficient frequency, volume and pricing consistency on an ongoing basis. This will be
used as fair value and there is no need for a valuation model in this case. These include exchange traded derivatives
(futures, options), shares, government bonds, as well as other bonds and funds which are traded in highly liquid and active
markets.
Level 2 of the fair value hierarchy
In case a market quote is used for valuation but due to restricted liquidity the market does not qualify as active (derived
from available market liquidity indicators) the instrument is classified as level 2.
If no market prices are available, the fair value is measured by using valuation models which are based on observable
market data. If all the significant inputs in the valuation model are observable, the instrument is classified as level 2 of the
fair value hierarchy. For level 2 valuations typically yield curves, credit spreads and implied volatilities are used as
observable market parameters. These include over-the-counter (OTC) derivatives, less liquid shares, bonds and funds, as
well as and own issues. Should the spread not be observable, it has to be tested if the unobservable input parameter is
significant. An unobservable input parameter for theoretical priced securities is considered significant if the effect of the
unobservable input on the fair value of the respective security is higher than 2%.
Level 3 of the fair value hierarchy
In some cases, the fair value can be determined neither on the basis of sufficiently frequent quoted market prices nor of
valuation models that rely entirely on observable market data. In these cases, individual valuation parameters not
observable in the market are estimated on the basis of reasonable assumptions. If any unobservable input in the valuation
model is significant or the price quote used is updated infrequently the instrument is classified as level 3 fair value
hierarchy. For level 3 valuations, besides observable parameters, typically credit spreads derived from internally calculated
historical probability of default (PD) and loss given default (LGD) measures are used as unobservable parameters.
40
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The following table shows fair values and fair value hierarchy of financial instruments whose fair value is disclosed in the notes for the year-end:

|  |  |  |  |  |  |  |  |  |  |  | 31.12.2025
in RON thousands |  | Group |  | Bank
| Carrying amount | Fair value | Fair value hierarchy |  | Carrying amount | Fair value | Fair value hierarchy
| Level 1 | Level 2 | Level 3 |  | Level 1 | Level 2 | Level 3
Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash balances |  | 11,440,918 | 11,440,918 | 3,778,145 | 7,662,773 | - |  | 11,435,554 | 11,435,554 | 3,778,145 | 7,657,409 | -
Financial assets at amortized cost |  | 98,155,165 | 97,353,664 | 20,437,719 | 2,479,729 | 74,436,216 |  | 100,365,988 | 99,665,135 | 20,309,156 | 2,473,944 | 76,882,035
Loans and advances to banks |  | 5,572,108 | 5,587,206 | - | - | 5,587,206 |  | 5,566,874 | 5,581,905 | - | - | 5,581,905
Loans and advances to customers |  | 69,334,335 | 68,816,982 | - | - | 68,816,982 |  | 71,683,869 | 71,268,102 | - | - | 71,268,102
Debt securities |  | 23,248,722 | 22,949,476 | 20,437,719 | 2,479,729 | 32,028 |  | 23,115,245 | 22,815,128 | 20,309,156 | 2,473,944 | 32,028
Finance lease receivables |  | 2,678,181 | 2,562,656 | - | - | 2,562,656 |  | 30,375 | 29,084 | - | - | 29,084
Trade and other receivables |  | 943,541 | 939,318 | - | - | 939,318 |  | 939,449 | 935,261 | - | - | 935,261
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Financial liabilities measured at amortized cost |  | 112,153,887 | 111,808,941 | - | 11,471,791 | 100,337,150 |  | 112,668,813 | 112,343,085 | - | 11,471,791 | 100,871,294
Deposits from banks, borrowings and financial lines |  | 3,179,432 | 3,145,742 | - | - | 3,145,742 |  | 3,370,715 | 3,356,221 | - | - | 3,356,221
Deposits from customers |  | 93,084,106 | 92,915,856 | - | - | 92,915,856 |  | 93,460,301 | 93,292,073 | - | - | 93,292,073
Debt securities in issue |  | 14,246,361 | 14,103,355 | - | 11,471,791 | 2,631,564 |  | 14,246,361 | 14,103,355 | - | 11,471,791 | 2,631,564
Other financial liabilities |  | 1,643,988 | 1,643,988 | - | - | 1,643,988 |  | 1,591,436 | 1,591,436 | - | - | 1,591,436
Lease liabilities |  | 591,782 | 591,782 | - | - | 591,782 |  | 590,344 | 590,344 | - | - | 590,344
Financial guarantees and commitments |  | - | 128,861 | - | - | 128,861 |  | - | 128,142 | - | - | 128,142
Financial guarantees |  | - | -12,857 | - | - | -12,857 |  | - | -12,862 | - | - | -12,862
Irrevocable commitments |  | - | 141,718 | - | - | 141,718 |  | - | 141,004 | - | - | 141,004

|  |  |  |  |  |  |  |  |  |  |  | 31.12.2024
in RON thousands |  | Group |  | Bank
| Carrying amount | Fair value | Fair value hierarchy |  | Carrying amount | Fair value | Fair value hierarchy
| Level 1 | Level 2 | Level 3 |  | Level 1 | Level 2 | Level 3
Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash balances |  | 10,642,241 | 10,642,241 | 3,116,586 | 7,525,655 | - |  | 10,596,154 | 10,596,154 | 3,116,586 | 7,479,568 | -
Financial assets at amortized cost |  | 90,038,137 | 88,708,963 | 19,112,022 | 521,927 | 69,075,014 |  | 91,972,536 | 90,635,148 | 18,995,220 | 516,323 | 71,123,605
Loans and advances to banks |  | 6,004,729 | 6,007,731 | - | - | 6,007,731 |  | 5,960,826 | 5,963,806 | - | - | 5,963,806
Loans and advances to customers |  | 63,410,093 | 63,061,810 | - | - | 63,061,810 |  | 65,514,657 | 65,154,326 | - | - | 65,154,326
Debt securities |  | 20,623,315 | 19,639,422 | 19,112,022 | 521,927 | 5,473 |  | 20,497,053 | 19,517,016 | 18,995,220 | 516,323 | 5,473
Finance lease receivables |  | 2,321,385 | 2,267,782 | - | - | 2,267,782 |  | 15,043 | 14,702 | - | - | 14,702
Trade and other receivables |  | 1,002,936 | 999,951 | - | - | 999,951 |  | 995,338 | 991,717 | - | - | 991,717
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Financial liabilities measured at amortized cost |  | 104,405,296 | 104,148,242 | - | 7,242,206 | 96,906,036 |  | 104,748,753 | 104,489,796 | - | 7,242,206 | 97,247,590
Deposits from banks, borrowings and financial lines |  | 1,707,994 | 1,689,548 | - | - | 1,689,548 |  | 1,813,319 | 1,793,736 | - | - | 1,793,736
Deposits from customers |  | 91,007,840 | 90,753,018 | - | - | 90,753,018 |  | 91,281,395 | 91,025,807 | - | - | 91,025,807
Debt securities in issue |  | 10,407,030 | 10,423,244 | - | 7,242,206 | 3,181,038 |  | 10,407,030 | 10,423,244 | - | 7,242,206 | 3,181,038
Other financial liabilities |  | 1,282,432 | 1,282,432 | - | - | 1,282,432 |  | 1,247,009 | 1,247,009 | - | - | 1,247,009
Lease liabilities |  | 500,390 | 500,390 | - | - | 500,390 |  | 498,276 | 498,276 | - | - | 498,276
Financial guarantees and commitments |  | - | 562,342 | - | - | 562,342 |  | - | 562,415 | - | - | 562,415
Financial guarantees |  | - | -5,436 | - | - | -5,436 |  | - | -5,510 | - | - | -5,510
Irrevocable commitments |  | - | 567,778 | - | - | 567,778 |  | - | 567,925 | - | - | 567,925

41
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The fair value of loans and advances to customers and credit institutions has been calculated by discounting future cash
flows while taking into consideration interest and credit spread effects. The interest rate impact is based on the movements
of market rates, while credit spread changes are derived from PD’s used for internal risk calculations. For the calculation of
fair value loans and advances were grouped into homogeneous portfolios based on rating method, rating grade, maturity,
and the country where they were granted. The measurement of fair values of loans to customers is not affected by whether
they are subject to synthetic securitisations. As a result, they are categorised as Level 3 measurements (see Note 28).
The fair values of financial assets at amortized cost are either taken directly from the market or they are determined by
directly observable input parameters (i.e., yield curves).
The fair value of issued securities and subordinated liabilities measured at amortized cost is based on market prices or on
observable market parameters, if these are available, otherwise it is estimated by taking into consideration the actual
interest rate environment and in this case, they are allocated to Level 2.
The fair value of deposits and other financial liabilities measured at amortized cost is estimated by taking into
consideration the actual interest rate environment and own credit spreads, and these are allocated to Level 3.
The fair value for commitments is based on the commitment amounts by rating method and rating grade for which
hypothetical loans are created through applying credit conversion factors, which finally will be subject to the regular fair
value calculation procedure described above for loans and advances.
Guarantees are seen as having two types of cash-flows or legs representing the regular fee payments received, and a single
potential compensation payment, respectively. The first leg consists of the sum of the discounted fee payments, weighted
by the survival probability (annualized marginal default probability), while the second leg consists of the negative sum of
discounted potential protection payments, i.e., the sum of the discounted loss weighted by the default probability. The fair
value of the guarantee is derived as the value of the premium leg minus the value of the compensation leg.
Financial instruments measured at fair value in the statements of financial position

|  |  |  |  |  |  |  | Group
in RON thousands | Quoted market prices in active markets Level 1 | Marked to model based on observable market data Level 2 | Marked to model based on non-observable inputs Level 3 | Total
Assets | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Financial assets - held for trading | 3,049,959 | 1,060,225 | 279,805 | 852,554 | - | - | 3,329,764 | 1,912,779
Derivative financial instruments held for trading | - | - | 102,599 | 187,806 | - | - | 102,599 | 187,806
Debt securities held for trading | 3,049,959 | 1,060,225 | 177,206 | 664,748 | - | - | 3,227,165 | 1,724,973
Non-trading financial assets at fair value through profit or loss | 4,966 | 4,674 | - | 1,875 | 92,648 | 81,313 | 97,614 | 87,862
Equity instruments | 4,966 | 4,674 | - | 1,875 | 87,158 | 68,796 | 92,124 | 75,345
Debt securities | - | - | - | - | 5,490 | 12,517 | 5,490 | 12,517
Financial assets at fair value through other comprehensive income | 11,504,513 | 10,795,661 | 1,669,167 | 1,966,327 | 116,811 | 5,727 | 13,290,491 | 12,767,715
Debt securities | 11,504,513 | 10,795,661 | 1,669,167 | 1,966,327 | 116,811 | 5,727 | 13,290,491 | 12,767,715
Total assets | 14,559,438 | 11,860,560 | 1,948,972 | 2,820,756 | 209,459 | 87,040 | 16,717,869 | 14,768,356
Liabilities |  |  |  |  |  |  |  |
Financial liabilities held for trading | - | - | 165,342 | 133,740 | - | - | 165,342 | 133,740
Derivative financial instruments held for trading | - | - | 165,342 | 133,740 | - | - | 165,342 | 133,740
Total liabilities | - | - | 165,342 | 133,740 | - | - | 165,342 | 133,740

42
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  | Bank
in RON thousands | Quoted market prices in active markets Level 1 | Marked to model based on observable market data Level 2 | Marked to model based on non-observable inputs Level 3 | Total
Assets | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Financial assets - held for trading | 3,049,959 | 1,060,225 | 279,805 | 852,554 | - | - | 3,329,764 | 1,912,779
Derivative financial instruments held for trading | - | - | 102,599 | 187,806 | - | - | 102,599 | 187,806
Debt securities held for trading | 3,049,959 | 1,060,225 | 177,206 | 664,748 | - | - | 3,227,165 | 1,724,973
Non-trading financial assets at fair value through profit or loss | 4,966 | 4,674 | - | 1,875 | 92,648 | 81,313 | 97,614 | 87,862
Equity instruments | 4,966 | 4,674 | - | 1,875 | 87,158 | 68,796 | 92,124 | 75,345
Debt securities | - | - | - | - | 5,490 | 12,517 | 5,490 | 12,517
Financial assets at fair value through other comprehensive income | 11,504,513 | 10,795,661 | 1,669,167 | 1,966,327 | 116,811 | 5,727 | 13,290,491 | 12,767,715
Debt securities | 11,504,513 | 10,795,661 | 1,669,167 | 1,966,327 | 116,811 | 5,727 | 13,290,491 | 12,767,715
Total assets | 14,559,438 | 11,860,560 | 1,948,972 | 2,820,756 | 209,459 | 87,040 | 16,717,869 | 14,768,356
Liabilities |  |  |  |  |  |  |  |
Financial liabilities held for trading | - | - | 165,342 | 133,740 | - | - | 165,342 | 133,740
Derivative financial instruments held for trading | - | - | 165,342 | 133,740 | - | - | 165,342 | 133,740
Total liabilities | - | - | 165,342 | 133,740 | - | - | 165,342 | 133,740

Financial assets held for trading position has increased during 2025 compared 2024 mostly due to an increase in the
government bonds portfolio.
Non-trading financial assets at fair value through profit or loss position includes:
• equity instruments, in principal minority interests classified as level 3 instruments for which the fair value is
determined based on internal assessment. The most common valuation methods used in the evaluation of
minority interest are: Quoted price in active markets, Expert opinion or Recent transaction value, Discounted
Cash Flow Method / Dividend Discount Model, the adjusted Net Asset Value, Simplified income approach;
• Visa Inc Preferred Share equity for which fair value is computed based on internal assessment for class C.
Financial assets at fair value through other comprehensive income include s:
• debt securities issued by Ministry of Finance which are actively traded classified on level 1 and 2;
• two debt securities issued by a financial institution, which is theoretically priced is presented on level 3.
Valuation of level 3 financial instruments
The volume of level 3 financial assets can be allocated to the following two categories:
• market values of derivatives where the credit value adjustment (CVA) has a material impact and is calculated
based on unobservable parameters (i.e., internal estimates of PDs and LGDs);
• illiquid bonds, shares and funds not quoted in an active market where either valuation models with non-
observable parameters have been used (e.g., credit spreads) or broker quotes have been used that cannot be
allocated to Level 1 or Level 2.
The unobservable inputs from CVA calculation are the probability of default (PD) and loss given default (LGD). The
probabilities of default are the result of the rating models development internally (at Erste Group level) and are used to
evaluate the credit risk including CVA. According to the allocated rating, each counterparty has assigned a probability of
default. The value of LGD parameter for the calculation of CVA is 60%.
As at December 2025, the fair valuation of VISA Inc class C preferred shares was based on reasonable assumptions and
estimations and was consequently classified in level 3. The sale of shares is limited to certain conditions which may restrict
the conversion of preferred shares into tradable VISA Inc shares. Due to these limiting conditions, and in order to reflect
the potential price volatility of Class A common shares and the limited liquidity of preferred shares the fair value of the
preferred shares was capped based on assumptions compared to free tradable VISA Inc. class A common shares. The price
of class C preferred shares was determined based on the conversion ratio of 1:0.764 and an additional haircut of 27.07%
was applied.
43
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Movements in Level 3 of financial instruments carried at fair value

|  |  |  |  |  |  |  | Group
in RON thousands | Balance | Gain/(loss) in profit or loss | Gain/(loss) in other comprehensive income | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Exchange rate differences | Balance
Assets | 01.01.2025 |  |  |  |  |  |  | 31.12.2025
Non-trading financial assets at fair value through profit or loss | 81,313 | 16,606 | - | -7,164 | 1,875 | - | 18 | 92,648
Equity instruments | 68,796 | 16,487 | - | - | 1,875 | - | - | 87,158
Debt securities | 12,517 | 119 | - | -7,164 | - | - | 18 | 5,490
Financial assets at fair value through other comprehensive income | 5,727 | - | 844 | - | 115,967 | -5,727 | - | 116,811
Debt securities | 5,727 | - | 844 | - | 115,967 | -5,727 | - | 116,811
Total assets | 87,040 | 16,606 | 844 | -7,164 | 117,842 | -5,727 | 18 | 209,459

|  |  |  |  |  |  | Group
in RON thousands | Balance | Gain/(loss) in profit or loss | Gain/(loss) in other comprehensive income | Disposals out of the group | Transfers out of Level 3 | Exchange rate differences | Balance
Assets | 01.01.2024 |  |  |  |  |  | 31.12.2024
Non-trading financial assets at fair value through profit or loss | 70,683 | 25,907 | - | - | -14,074 | -1,203 | 81,313
Equity instruments | 50,670 | 18,126 | - | - | - | - | 68,796
Debt securities | 20,013 | 7,781 | - | - | -14,074 | -1,203 | 12,517
Financial assets at fair value through other comprehensive income | 31,022 | - | 63 | -25,663 | - | 305 | 5,727
Debt securities | 31,022 | - | 63 | -25,663 | - | 305 | 5,727
Total assets | 101,705 | 25,907 | 63 | -25,663 | -14,074 | -898 | 87,040

|  |  |  |  |  |  |  | Bank
in RON thousands | Balance | Gain/(loss) in profit or loss | Gain/(loss) in other comprehensive income | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Exchange rate differences | Balance
Assets | 01.01.2025 |  |  |  |  |  |  | 31.12.2025
Non-trading financial assets at fair value through profit or loss | 81,313 | 16,606 | - | -7,164 | 1,875 | - | 18 | 92,648
Equity instruments | 68,796 | 16,487 | - | - | 1,875 | - | - | 87,158
Debt securities | 12,517 | 119 | - | -7,164 | - | - | 18 | 5,490
Financial assets at fair value through other comprehensive income | 5,727 | - | 844 | - | 115,967 | -5,727 | - | 116,811
Debt securities | 5,727 | - | 844 | - | 115,967 | -5,727 | - | 116,811
Total assets | 87,040 | 16,606 | 844 | -7,164 | 117,842 | -5,727 | 18 | 209,459

|  |  |  |  |  |  | Bank
in RON thousands | Balance | Gain/(loss) in profit or loss | Gain/(loss) in other comprehensive income | Disposals out of the group | Transfers out of Level 3 | Exchange rate differences | Balance
Assets | 01.01.2024 |  |  |  |  |  | 31.12.2024
Non-trading financial assets at fair value through profit or loss | 70,683 | 25,907 | - | - | -14,074 | -1,203 | 81,313
Equity instruments | 50,670 | 18,126 | - | - | - | - | 68,796
Debt securities | 20,013 | 7,781 | - | - | -14,074 | -1,203 | 12,517
Financial assets at fair value through other comprehensive income | 5,359 | - | 63 | - | - | 305 | 5,727
Debt securities | 5,359 | - | 63 | - | - | 305 | 5,727
Total assets | 76,042 | 25,907 | 63 | - | -14,074 | -898 | 87,040

Unobservable inputs and sensitivity analysis for Level 3 measurements
In case the fair value measurement of a financial asset is retrieved from input parameters which are not observable in the
market, those parameters can be retrieved from a range of alternative parameters. For the preparation of the statements of
financial position, the parameters were chosen to reflect the market situation at the reporting date.
44
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Range of unobservable valuation parameters used in Level 3 measurement

Financial assets | Type of instrument | Valuation technique | Significant unobservable inputs | Range of unobservable inputs (weighted average) |
Dec-25 |  |  |  |  |
Financial assets at FVOCI | Fixed and variable | Discounted cash flow | Credit Spread | 0.97% - 1.28% |
coupon bonds |
Financial assets | Non-trading equity instruments (participations) | Dividend Discount Model; | Beta relevered | Industries: |
at FVOCI / at FVPL | Simplified Income Approach | Insurance (General) 0.87 |
|  | Financial Svcs. (Non-bank & Insurance) 1.1 |
|  | Country risk premium | Romania 2.16% - 2.18% |
| Adjusted Net Asset Value | Adjusted Equity | Depending on accounting equity of investment. |

Range of unobservable valuation parameters used in Level 3 measurement |  |
Financial assets | Type of instrument | Valuation technique | Significant unobservable inputs | Range of unobservable inputs (weighted average) |
Dec-24 |  |  |  |  |
Financial assets at FVOCI | Fixed and variable coupon bonds | Discounted cash flow | Credit Spread | 2.41% |
Financial assets | Non-trading equity instruments (participations) | Dividend Discount Model; | Beta relevered | Industries: |
at FVOCI / at FVPL | Simplified Income Approach | Insurance (General) 0.96 |
|  | Financial Svcs. (Non-bank & Insurance) 0.98-1.07 |
|  | Country risk premium | Romania 2.39%-2.68% |
| Adjusted Net Asset Value | Adjusted Equity | Depending on accounting equity of investment. |

In estimating these impacts, mainly changes in credit spreads (for bonds), and market values of comparable equities were
considered. An increase (decrease) of spreads result in a decrease (increase) of the corresponding fair values. For non-
trading equity instruments increases (decreases) in any of the inputs used for the cost of equity calculation in isolation
would result in a lower (higher) fair value.
The following ranges of reasonably possible alternatives of the unobservable inputs were considered in the sensitivity
analysis table:
• for debt securities range of credit spreads between +100 basis points and -75 basis points;
• for equity related instruments the price range between -10% and +5%;
• for unquoted equity instruments measured by the adjusted net asset value the price range between -10% and
+10%;
• for unquoted equity instruments measured by dividend discount model/simplified income approach the cost of
equity range between -2% and +2%.

|  | Bank
| Fair value changes
| Positive | Negative
in RON thousands | Dec. 2025 | Dec. 2025
Debt securities | 3,043 | -4,057
Other comprehensive income | 3,043 | -4,057
Equity instruments | 368 | -737
Income statements | 368 | -737
Total | 3,411 | -4,794
Income statements | 368 | -737
Other comprehensive income | 3,043 | -4,057

45
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

24. Encumbered assets for repo transactions

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Financial assets at amortized cost | 100,925 | 322,960 | 100,925 | 855,579
Financial assets held for trading | 620,510 | 9,898 | 620,510 | 9,898
Financial assets at fair value through other comprehensive income | 644,802 | 20,797 | 1,166,685 | 20,797
Total | 1,366,237 | 353,655 | 1,888,120 | 886,274

Encumbered assets include securities used for repo transactions (see further details in note 25).
25. Transfers of financial assets
Repurchase transactions
Transactions involving sales of securities under an agreement to repurchase them at a specified future date are also known
as ‘repos’ or ‘sale and repurchase agreements’. Securities sold in such transactions are not derecognized from the
statements of financial position, as Group retains substantially all the risks and rewards of ownership because the securities
are repurchased when the repo transaction ends. Furthermore, the Group is the beneficiary of all the coupons and other
income payments received on the transferred assets over the period of the repo transactions. These payments are remitted
to the Group or are reflected in the repurchase price.
The corresponding cash received is recognized on the statements of financial position with a corresponding obligation to
return it as a liability under the line item ‘Financial liabilities measured at amortized cost’, sub-items ‘Deposits from banks’
or ‘Deposits from customers’ reflecting the transaction’s economic substance as a loan to the Group. The difference
between the sale and repurchase prices is treated as interest expense and recorded in the statements of profit or loss under
the line item ‘Net interest income’ and is accrued over the life of the agreement. Conversely, securities purchased under
agreements to resell at a specified future date are not recognized on the statements of financial position. Such transactions
are also known as ‘reverse repos’.
The consideration paid is recorded on the statements of financial position under the respective line items ‘Financial assets
at amortized cost’, sub-item ‘Loans and advances to banks’ or ‘Loans and receivables to customers’, reflecting the
transaction’s economic substance as a loan by the Group. The difference between the purchase and resale prices is treated
as interest income and is accrued over the life of the agreement and recorded in the statements of profit or loss under the
line item ‘Net interest income’.

|  |  |  | Group
in RON thousands | Carrying amount of transferred assets | Carrying amount of associated liabilities | Carrying amount of transferred assets | Carrying amount of associated liabilities
| 31.12.2025 | 31.12.2024
Financial assets held for trading | 620,510 | 620,343 | 9,898 | 9,910
Financial assets at fair value through other comprehensive income | 644,802 | 645,150 | 20,797 | 20,703
Financial assets at amortized cost | 100,925 | 102,499 | 322,960 | 286,385
Total | 1,366,237 | 1,367,992 | 353,655 | 316,998

|  |  |  | Group
in RON thousands | Fair value of transferred assets | Fair value of associated liabilities | Fair value of transferred assets | Fair value of associated liabilities
| 31.12.2025 | 31.12.2024
Financial assets held for trading | 620,510 | 617,675 | 9,898 | 9,910
Financial assets at fair value through other comprehensive income | 644,802 | 642,376 | 20,797 | 20,703
Financial assets at amortized cost | 102,470 | 102,058 | 288,090 | 283,292
Total | 1,367,782 | 1,362,109 | 318,785 | 313,905

46
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  | Bank
in RON thousands | Carrying amount of transferred assets | Carrying amount of associated liabilities | Carrying amount of transferred assets | Carrying amount of associated liabilities
Repurchase agreements | 31.12.2025 | 31.12.2024
Financial assets held for trading | 620,510 | 620,343 | 9,898 | 9,910
Financial assets at fair value through other comprehensive income | 1,166,685 | 1,133,787 | 20,797 | 20,703
Financial assets at amortized cost | 100,925 | 102,499 | 855,579 | 795,420
Total | 1,888,120 | 1,856,629 | 886,274 | 826,033

The transferred financial instruments consist of government bonds issued by Romania.
The following table shows fair values of the assets pledged and associated liabilities which have recourse only to the
transferred assets. These assets and liabilities relate to repo transactions.

| - |  |  | Bank
in RON thousands | Fair value of transferred assets | Fair value of associated liabilities | Fair value of transferred assets | Fair value of associated liabilities
Repurchase agreements | 31.12.2025 | 31.12.2024
Financial assets held for trading | 620,510 | 617,675 | 9,898 | 9,910
Financial assets at fair value through other comprehensive income | 1,166,685 | 1,128,911 | 20,797 | 20,703
Financial assets at amortized cost | 102,470 | 102,058 | 818,362 | 786,830
Total | 1,889,665 | 1,848,644 | 849,057 | 817,443

Repurchase agreements are primarily financing transactions. They are structured as a sale and subsequent repurchase of
securities at a pre-agreed price and time. This ensures that the securities stay in hands of lender as collateral in case that
borrower defaults in fulfilling any of its obligations.
Cash and non-cash financial collateral involved in these transactions is restricted from using it by the transferor during the
time of the pledge. The carrying amount of assets pledged is included in note 24.
As at 31 December 2025, reverse repurchase transactions in amount of RON 5,344,953 thousands were concluded (2024:
RON 5,852,878 thousands). The Bank received as collateral financial assets consisting in bonds. The fair value of collateral
as of December 31, 2025 was in amount of RON 5,434,987 thousands (31.12.2024: RON 5,958,285 thousands). The Bank has
the right to sell or repledge the assets in the absence of default situation of the owner of the collateral.
47
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 7 – Risk and capital management
26. Risk management
Risk Management is embedded within the daily operation of the Bank, from strategy formulation and capital projects,
through to operational planning and processes. In adopting this approach, the Bank provides a visible assurance of
transparency and effective self-governance to stakeholders. At the same time the risk process assists the Bank in the
planning of its resources, setting priorities, identifying opportunities, agreeing a relevant program of internal control and
audit, and ensures that clear responsibility exists for the management of each area of risk.
The core function of the Bank is to take risks in a conscious and selective manner and to manage the risks professionally.
The Group’s proactive risk policy and risk strategy aims at achieving balanced risk and return in order to generate a
sustainable and adequate return on equity.
The Group uses a risk management and control system that is forward-looking and tailored to its business and risk profile.
This system is based on a clear risk strategy that is consistent with the business strategy and focused on early identification
and management of risks and trends. In addition to meeting the internal goal of effective and efficient risk management,
the Group’s risk management and control system has been developed to fulfil external requirements and, in particular,
regulatory requirements.
Given the Group’s business strategy, the key risks for the Group are credit risk, market risk, operational risks, and liquidity
risk. In addition, a risk materiality assessment is undertaken on at least an annual basis. It is ensured that all relevant
material risks are covered by the Group’s control and risk management framework. This entails a set of different tools and
governance to ensure adequate oversight of the overall risk profile and sound execution of the risk strategy, including
appropriate monitoring and escalation of issues that could materially impact the risk profile of the group. The Bank always
seeks to enhance and complement existing methods and processes in all areas of risk management.
Risk governance structure
The Bank has developed a governance model based on a framework which ensures efficiently organized corporate
governance. It also helps ensuring the Bank’s stability and maintains the corporate governance standards and of business
conduct.
The Risk Governance structure is presented below:
Supervisory Board
The Supervisory Boa rd secures the supervision, manages and coordinates the Management Board activity and monitors the
compliance with the applicable legislation and the BCR Charter provisions including the decisions of the General Meeting
of Shareholders and the Bank’s strategies and policies. The Supervisory Board functions based on its own Internal Rules.
The Risk and Compliance Committee of the Supervisory Board
The Risk and Compliance Committee assists the Supervisory Board in carrying out its attributions in relation to risk
management and is a consultative body which revises, reports to, counsels and assists the Supervisory Board in fulfilling
attributions which fall in its responsibility in relation to risk management, compliance, litigations, business continuity and
security management and issues recommendations according to the authority limits established through the Internal
Rules. The Risk and Compliance Committee is in permanent contact and collaboration with the head of the risk
management function and takes into account its recommendations and expertise in taking decisions or preparing reports
towards the Management Board and Supervisory Board in relation to the key risk issues of the Bank.
Audit Committee of the Supervisory Board
The Audit Committee has a consultative role, as it was established in order to assist the Supervisory Board in carrying out
its attributions, drafting recommendations within the limits of its competencies, according to its responsibilities and
attributions provisioned in the Internal Rules, in relation to internal control, financial reporting process, annual financial
statements and audit (internal and external).
Management Board
The Management Board fulfils the management, according to the law and secures the operational management of the Bank
and effective administration of the compliance risk, having responsibilities established by the applicable legislation and by
the Management Board Internal Rules, approved by the Supervisory Board.
48
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The Management Board is responsible for the overall risk strategy of the Bank, including the risk tolerance/risk appetite, as
well as for the risk management framework.
Risk Committee
Risk Committee is organized and works as analysis/approval body referring to the main subjects linked to operational risk
administration, within the authority limits established through the Internal Rules and other specific internal regulations,
delegated by the Management Board.
Credit Committee
The Credit Committee is a decisional body which is subordinated to the MB that carries out its activities in the corporate
and retail credit areas as well as Workout area.
Sustainability, Diversity and Inclusion Committee
Sustainability Committee is an analysis, consultative and decision-making body for all the sustainability related topics
within the authority limits established through the Internal Rules and other specific internal regulations, delegated by the
Management Board.
Strategic Risk Committee
Strategic Risk Committee is an analysis, consultative and decision-making body subordinated to the Management Board,
exercising responsibilities delegated by the Management Board regarding all technical aspects related to the risk
management frameworks, methodologies, and technical documentation to ensure BCR’s compliance with prudential
requirements.
Risk management organization
Risk control and risk steering within the Group are performed based on the strategy and risk appetite approved by the
Supervisory Board. Risk monitoring and control are achieved through a clear organizational structure with defined roles
and responsibilities, delegated authorities and risk limits.
The Chief Risk Officer (CRO) has the role of Compliance Function and Risk Management Function coordinator and
oversees the management of retail and corporate credit risk, market risk, operational risk, liquidity as well as reputational
risk and strategic risk, the assessment of collaterals and other risk related activities and the compliance risk.
Also, CRO as BCR Compliance Officer coordinates the implementation of the internal policies and procedures for
complying with the stipulations of the Law no. 129/2019 for AML/CFT:
• Coordinates the enforcement of the policies, procedures and the approved controls;
• Enacts the risk mitigation measures in case of non-compliance situations regarding AML/CFT/KYC/
international sanctions;
• Participates in the meetings of the Bank's commissions and working committees on topics regarding
situations that expose the bank to a higher level of risk AML/ CFT/ KYC/ international sanctions.
Within this framework, the risk management specialists are clearly delimited from an organizational point of view from
the employees of the operational and support functions.
The Risk Management function is a central organizational function, structured so it can implement risk policies and
control the risk management framework.
The main roles of the Risk Management function are:
• Ensures that all material risks are identified, measured and properly reported;
• Implements the Enterprise Risk Management principles and ensures that adequate and consistent risk
management policies are developed and implemented for all material risks; and
• Ensures that the Bank has effective risk management processes in place by being involved the elaboration
and review of the strategies, in the decision-making process, as well as in the risk monitoring process.
The Risk Management function performs regular reports both at individual material risk level and at bank-wide risk
exposure level (i.e. complete view of the whole range of risks) to the Management Board, the Risk Committee, Credit
Committee, Assets and Liabilities Committee, the Risk and Compliance Committee of the Supervisory Board and the
Supervisory Board of the risk aspects that are considered within the decision-making process of the Bank.
49
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Reports include information on aspects such as:
• Risk exposures and their development;
• Key risk indicators evolution and specific limits;
• Results of the stress testing exercises;
• Internal capital adequacy (risks coverage capacity).
As of 31.12.2025, the risk management function is consolidated under Risk Functional Line, coordinated by the Chief Risk
Officer and consists from the following divisions: Retail Risk Management Division, Corporate Risk Management Division,
Strategic Risk Management Division, Security Management and Business Continuity Division, Compliance Division.
Group-wide risk and capital management
The main purposes of the Group’s capital management policies and practices are to support its business strategy and to
ensure that it is sufficiently capitalised to withstand even severe macroeconomic downturns.
The Group considers the management of risk and capital to be among its core responsibilities and a key factor in providing
a stable, high return to shareholders. The Group's capital management aims to ensure efficient use of capital to meet the
Group's overall capital targets.
The risk management framework enables an increased focus on holistic risk management and ensures comprehensive,
cross-risk Group-wide risk portfolio steering. Also, it drives key strategic cross-risk initiatives to establish greater cohesion
between the risk strategy including the risk appetite and limit steering. ERM involves all risk functions and key divisions to
strengthen risk oversight group-wide, covering capital (RWA and ICAAP), credit, liquidity (ILAAP), market, operational
and other risks.
At the Bank level, Strategic Risk Management Division is responsible for the group’s Internal Capital Adequacy
Assessment Process (ICAAP) including the stress testing framework, and furthermore for the proper calculation of risk-
weighted assets (RWA), risk portfolio steering with respect to material risks, risk planning and risk input into capital
planning, risk appetite and limit management, as well as liquidity & market risk / operational risk steering.
As in prior years, the Group’s risk management framework has been continuously strengthened. This includes as its
fundamental pillar the Internal Capital Adequacy Assessment Process (ICAAP), as required under Pillar II of the Basel
framework.
The risk management framework is designed to support the Bank’s management in managing the risk portfolios as well as
the coverage potential to ensure that the bank holds at all times adequate capital for the nature and magnitude of the
bank’s risk profile. It is tailored to the Group’s business and risk profile, and it reflects the strategic goal of protecting
shareholders while ensuring the sustainability of the organization.
The risk management framework is a modular and comprehensive management and steering system within the Group and
is an essential part of the overall steering and management instruments. It can be clustered as follows:
• Risk appetite statement, limits and risk strategy;
• Portfolio & risk analytics, including:
- Risk materiality assessment,
- Concentration risk management,
- Stress testing
• Risk-bearing capacity calculation
• Risk planning & forecasting, including:
- Risk-weighted asset management,
- Capital allocation
• Recovery planning.
In addition to the ICAAP’s ultimate goal of ensuring ongoing and prospective capital adequacy, the risk management
framework serves to support the Bank’s management in pursuing and achieving its strategy.
50
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

27. Own funds and capital requirements
Own funds disclosure
Regulatory Requirements
Capital management at the Group and Bank level is calculated on total own funds. Since 1 January 2014, Group has been
calculating the regulatory capital and the regulatory capital requirements according to Basel 3. The requirements have been
implemented within the EU by the CRR and the CRD IV as well as within various technical standards issued by European
Bank Authority, which were enacted in national law in the National Bank of Romania, Regulation No 5/2013 with further
modifications and amendments.
All requirements as defined in the CRR, the NBR and the aforementioned technical standards were fully applied by the
Group and the Bank, during 2025 and 2024.
The below disclosure is based on the information provided to the management, following IAS 1 paragraph 135.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Common equity tier 1 capital (CET1) | 11,081,818 | 11,498,401 | 11,157,041 | 11,532,698
Additional tier 1 capital (AT1) | 2,482,035 | 741,555 | 2,482,035 | 741,555
Tier 1 Capital | 13,563,853 | 12,239,956 | 13,639,076 | 12,274,253
Tier 2 Capital | 1,170,167 | 1,202,642 | 1,170,169 | 1,202,642
Total own funds | 14,734,020 | 13,442,598 | 14,809,245 | 13,476,895
Capital Ratios |  |  |  |
CET 1 Capital ratio | 17.11% | 20.11% | 18.03% | 21.64%
T1 Capital ratio | 20.94% | 21.41% | 22.04% | 23.03%
Total capital ratio | 22.75% | 23.52% | 23.93% | 25.28%

51
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

28. Credit Risk
ESG Risk Management
Environmental, Social and Governance (ESG) risks remained a key focus area in 2025. BCR integrated ESG factors in the
risk management and industry strategy framework. To evaluate small and medium-sized enterprises, the ESG Factor
Heatmap is utilized as a screening tool, identifying specific segments (out of the existing segmentation) that may be
exposed to ESG risks, and highlighting industries more susceptible to such risks. Based on these insights, the Bank
develops industry strategies and lending standards aimed at guiding its portfolio while considering ESG risks.
For large corporate the Bank conducts a systemic ESG analysis via an internal digital ESG Assessment questionnaire. The
questionnaire is a mandatory prerequisite in the loan origination and monitoring process. Through this comprehensive
assessment, BCR is able to determine to which extent a client’s ESG strategy is aligned with the Bank’s industry strategies
and how certain ESG factors may have a positive or negative impact on the financial performance of clients. Questions
cover various dimensions, such as current and targeted greenhouse gas emissions, impact of carbon prices on profitability,
EU Taxonomy aligned and eligible financial data, waste, water consumption, biodiversity, physical risk impact, workers
and human rights, governance topics and compliance with minimum safeguards. The questionnaire forms an integral part
of the credit application and is updated at least annually, allowing the Bank to understand the client's business model in
the context of carbon transition.
Furthermore, ESG relevant data (e.g. building’s environmental footprint, including information on land consumption,
space efficiency) is collected for certain types of collateral, as defined in the Collateral Management Policy for real estate
collateral valuations, documentation and reporting purposes. Environmental aspects which affect the value of the collateral
have to be included in the real estate valuations, which can lead to a higher or lower valuation result.
BCR acknowledges the additional challenges caused by ESG risks and is in the process of analyses how these risks can be
incorporated into expected credit loss measurement. As of 31 December 2025 no overlays are deemed necessary. In the
Risk Materiality Assessment, climate and environment related risks are overall assessed as medium. This assessment is
driven by the transition risk as a share of the portfolio still has high greenhouse gas emissions and would therefore be
exposed to increased risk in the event of a disorderly transition scenario.
Definition
Credit risk is the risk of a partial or complete default on contractually agreed payment obligations. Credit risk refers to the
negative consequences associated with defaults or the non-fulfillment of concluded contracts in banking operations due to
deterioration in the counterparty’s credit quality.
The Bank also defines credit risk as the current or prospective risk to earnings and capital arising from a borrower’s failure
to meet the terms of any contract with the credit institution or its failure to perform as agreed. Credit risk arises in BCR’s
traditional lending and investment activities.
Internal rating system
BCR has business and risk strategies in place that govern policies for lending and credit approval processes. These policies
are reviewed and adjusted regularly, at minimum on a yearly basis. They cover the entire lending business, taking into
account the nature, scope and risk level of the transactions and the counterparties involved. Credit approval considers
individual information on the creditworthiness of the customer, the type of credit, collateral, covenant package and other
risk mitigation factors involved.
The assessment of counterparty default risk within the Group is based on the customer’s probability of default (PD). For
each credit exposure and lending decision, the Group assigns an internal rating, which is a unique measure of the
counterparty default risk. The internal rating of each customer is updated event-specific, however, at least once a year
(annual rating review). Ratings of workout customers are reviewed with higher frequency.
The main purpose of the internal ratings is to support the decision-making for lending and for the terms of credit facilities.
Internal ratings also determine the level of decision-making authority within the Group and the monitoring procedures for
existing exposures. At a quantitative level, internal ratings influence the level of required risk pricing, risk allowances and
risk-weighted assets.
Internal ratings take into account all available significant information for the assessment of counterparty default risk. For
non-retail borrowers, internal ratings take into account the financial strength of the counterparty, the possibility of external
support, flexibility in corporate financing, general company information and external credit history information, where
available. For retail clients, internal ratings are based mainly on payment behavior versus the Bank and, where applicable,
52
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

credit bureau information, supplemented with information provided by the respective client and general demographic
information. Rating ceiling rules on credit quality are applied based on membership in a group of economically related
entities and the country of main economic activity (applicable to cross-border financing facilities).
Internal specialist teams develop and improve internal rating models and risk parameters in cooperation with risk
managers. Model development follows an internal group-wide methodological standard and utilizes relevant data covering
the respective market.
All rating models and their components (scorecards), whether retail or non-retail, are regularly validated by the central
validation unit based on a Erste Group standard methodology. Validation uses statistical techniques to evaluate the
accuracy of default prediction, rating stability, data quality, completeness and relevance, reviews the quality of
documentation and degree of user acceptance. The results of this validation process are reported to the Group’s
management body. In addition to the validation process, the Group applies a regular monitoring process on the
performance of rating tools, reflecting developments in new defaults and early delinquencies.
Credit risk classification
For the purpose of disclosing asset quality, the Group assigns each customer to one of the following four risk categories:
Low risk: Typically regional customers with well-established and rather long-standing relationships or large
internationally recognized customers. A strong and good financial position and no foreseeable financial difficulties. Retail
clients having long relationships with the Group, or clients with a wide product pool use. No relevant late payments
currently or in the most recent 12 months. New business is generally with clients in this risk category.
Management attention: Vulnerable non-retail clients that may have overdue payments or defaults in their credit history
or may encounter debt repayment difficulties in the medium term. Retail clients with limited savings or payment problems
in the past triggering early collection reminders. These clients typically have a good recent payment history.
Substandard: The borrower is vulnerable to negative financial and economic developments and shows an elevated
probability of failure. In some cases, restructuring measures are possible or already in place. Such loans are managed in
specialized risk management departments.
Non-performing: In line with EBA’s Technical Standards on forbearance and non-performing exposure. This category
includes the non-performing exposure to defaulted customers in the sense of art. 178 of EU Regulation no. 575/2013
including unlikeliness to pay, overdue material amounts with more than 90 days past due, restructuring resulting into a
loss to the lender, realization of a loan loss and initiation of Bankruptcy proceedings. BCR applies the customer view for all
customer segments, including retail clients; if an obligor defaults on one deal, then the customer’s performing transactions
are classified as non-performing as well.
The materiality of 90 days past due credit obligation is applied for on-balance exposure at client level and assessed daily
against the group-wide defined materiality threshold (except the local regulator has defined different thresholds) for the:
• retail exposures: absolute limit on client level of 150 RON and relative 1% on client level;
• non-retail exposures: absolute limit on client level of 1000 RON and relative 1% on client level.
The assignment of exposures to risk categories is based on the calibration of PDs for regulatory purposes to the default rates
published by rating agencies, the equivalent external customer rating was used for the assignment to risk categories. For
the agency ratings, average one-year default rates resulting from long-term time series were applied.
In order to manage the credit risk for large corporates, banks, sovereigns and country risk, credit limits are established to
reflect the maximum exposure that the Bank is willing to have towards a particular customer or group of connected clients.
All credit limits and the transactions booked within the limits are reviewed at least once a year.
For corporate clients there is a procedure in place related to Early Warning Signals identification and monitoring, through
which it is ensured the detection at early stage of the sensitive exposure through a pro-active approach of the clients and
maintaining an adequate payment behavior of the corporate clients. Once adverse developments are identified, an action
plan containing corrective measures is initiated.
For smaller enterprises (micro-banking) and private individuals (PI) customers, the portfolio monitoring and management
is based on an automated early warning system and MIS (Management Integrated System) Group standards. In retail risk
management the following early warning signals indicate potential adverse portfolio developments if left unaddressed:
• deterioration of new business quality;
• decreasing collections efficiency;
• average portfolio rating deterioration.
53
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Credit portfolio reports for asset classes and business lines are prepared on a regular basis. Watch-list meetings are held on
a regular basis to monitor customers with a poor credit standing and to discuss pre-emptive measures to help a particular
debtor avoid default.
Credit risk review and monitoring
Credit risk exposure relates to the following statements of financial position items:
• cash and cash balances - demand deposits to credit institutions;
• debt instruments held for trading;
• non-trading debt instruments at fair value through profit or loss (FVPL);
• debt instruments at fair value through other comprehensive income (FVOCI);
• debt instruments at amortized cost (AC), other than trade and other receivables;
• trade and other receivables (for disclosure purposes in the tabular summaries below, any contract assets are also
included in this category);
• finance lease receivables;
• debt instruments held for sale in disposal groups;
• off-balance sheet exposures (primarily financial guarantees and undrawn loan commitments).
For credit risk purposes debt instruments shall include debt securities and loans and advances. Equity instruments are not
included in the credit risk exposure.
The credit risk exposure equates the gross carrying amount (or nominal value in the case of off-balance sheet positions)
excluding:
• credit loss allowances for financial assets;
• credit loss allowances for loan commitments and financial guarantees;
• provisions for other commitments;
• any collateral held (including risk transfer to guarantors);
• netting effects;
• other credit enhancements;
• credit risk mitigating transactions.
The gross carrying amount of the credit risk exposure of the Group increased by RON 13.987.555 thousands from almost
RON 141.059.322 thousands as of 31 December 2024 to approximately RON 155.046.877 thousands as of 31 December 2025.
The gross carrying amount of the credit risk exposure of the Bank increased by RON 14.612.769 thousands, from almost
RON 140.903.658 thousands as of 31 December 2024 to approximately RON 155.516.427 thousands as of 31 December 2025.
54
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Reconciliation between the gross carrying amount and the carrying amount of the credit risk exposure
components

| Group | Bank
in RON thousands | Credit risk exposure | Credit loss allowances | Adjustments * | Carrying amount | Credit risk exposure | Credit loss allowances | Adjustments * | Carrying amount
| 31.12.2025
Cash and cash balances - demand deposits to central banks and credit institutions | 114,045 | -539 | - | 113,506 | 113,368 | -538 | - | 112,830
Debt instruments held for trading | 3,329,764 | - | - | 3,329,764 | 3,329,764 | - | - | 3,329,764
Non-trading debt instruments at FVPL | 5,490 | - | - | 5,490 | 5,490 | - | - | 5,490
Debt securities | 5,490 | - | - | 5,490 | 5,490 | - | - | 5,490
Debt instruments at FVOCI | 13,024,305 | -5,809 | 266,186 | 13,290,491 | 13,024,304 | -5,809 | 266,187 | 13,290,491
Debt securities | 13,024,305 | -5,809 | 266,186 | 13,290,491 | 13,024,304 | -5,809 | 266,187 | 13,290,491
Debt instruments at AC | 100,716,848 | -2,561,683 | - | 98,155,165 | 102,851,092 | -2,485,104 | - | 100,365,988
Debt securities | 23,258,717 | -9,995 | - | 23,248,722 | 23,125,184 | -9,939 | - | 23,115,245
Loans and advances to banks | 5,572,305 | -197 | - | 5,572,108 | 5,567,071 | -197 | - | 5,566,874
Loans and advances to customers | 71,885,826 | -2,551,491 | - | 69,334,335 | 74,158,837 | -2,474,968 | - | 71,683,869
Trade and other receivables | 982,282 | -38,741 | - | 943,541 | 970,265 | -30,816 | - | 939,449
Finance lease receivables | 2,759,373 | -81,192 | - | 2,678,181 | 30,404 | -29 | - | 30,375
Off balance-sheet exposures | 34,114,770 | -217,887 | - | - | 35,191,740 | -216,685 | - | -
Financial guarantees | 2,555,974 | -10,980 | - | - | 2,597,710 | -11,010 | - | -
Loan commitments | 26,412,722 | -206,907 | - | - | 27,442,956 | -205,675 | - | -
Total | 155,046,877 | -2,905,851 | 266,186 | 118,516,138 | 155,516,427 | -2,738,981 | 266,187 | 118,074,387

*Adjustments refer to the fair value changes of the carrying amount for financial assets at FVOCI.

| Group | Bank
in RON thousands | Credit risk exposure | Credit loss allowances | Adjustments * | Carrying amount | Credit risk exposure | Credit loss allowances | Adjustments * | Carrying amount
| 31.12.2024
Cash and cash balances - demand deposits to central banks and credit institutions | 264,333 | -244 | - | 264,089 | 263,995 | -160 | - | 263,835
Debt instruments held for trading | 1,912,779 | - | - | 1,912,779 | 1,912,779 | - | - | 1,912,779
Non-trading debt instruments at FVPL | 12,517 | - | - | 12,517 | 12,517 | - | - | 12,517
Debt securities | 12,517 | - | - | 12,517 | 12,517 | - | - | 12,517
Debt instruments at FVOCI | 12,719,382 | -5,435 | 48,333 | 12,767,715 | 12,719,382 | -5,434 | 48,333 | 12,767,715
Debt securities | 12,719,382 | -5,435 | 48,333 | 12,767,715 | 12,719,382 | -5,434 | 48,333 | 12,767,715
Debt instruments at AC | 93,000,530 | -2,962,393 | - | 90,038,137 | 94,859,377 | -2,886,841 | - | 91,972,536
Debt securities | 20,632,200 | -8,885 | - | 20,623,315 | 20,505,886 | -8,833 | - | 20,497,053
Loans and advances to banks | 6,004,786 | -57 | - | 6,004,729 | 5,960,867 | -41 | - | 5,960,826
Loans and advances to customers | 66,363,544 | -2,953,451 | - | 63,410,093 | 68,392,624 | -2,877,967 | - | 65,514,657
Trade and other receivables | 1,037,882 | -34,946 | - | 1,002,936 | 1,021,004 | -25,666 | - | 995,338
Finance lease receivables | 2,405,189 | -83,804 | - | 2,321,385 | 16,229 | -1,186 | - | 15,043
Off balance-sheet exposures | 29,706,710 | -316,171 | - | - | 30,098,375 | -315,330 | - | -
Financial guarantees | 2,166,804 | -15,671 | - | - | 2,317,499 | -16,339 | - | -
Loan commitments | 23,455,975 | -300,500 | - | - | 23,684,971 | -298,991 | - | -
Total | 141,059,322 | -3,402,993 | 48,333 | 108,319,558 | 140,903,658 | -3,234,617 | 48,333 | 107,939,763

*Adjustments refer to the fair value changes of the carrying amount for financial assets at FVOCI.
Credit loss allowances comprise impairments for financial assets measured at amortized cost (including finance lease
receivables and trade and other receivables) and at fair value through other comprehensive income (FVOCI), as well as
provisions for off-balance sheet exposures.
Credit loss allowances do not include expected credit loss for cash at central banks (202 5: RON 1,470 thousands in case of
Bank and RON 1,470 thousands in case of Group).
The gross carrying amount of contingent liabilities refers to the nominal value, while credit risk provisions refer to
provisions for financial guarantees. A carrying amount is not presented in the case of contingent liabilities.
55
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Breakdown of credit risk exposure
On the following pages the credit risk exposure is categorized in the following way:
• industry and risk category;
• region and risk category;
• business segment and risk category;
• financial instrument and collateral.
Credit risk exposure by industry and risk category

|  |  |  | 31.12.2025 | Group
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Natural Resources & Commodities | 1,377,601 | 2,093,594 | 490,204 | 480,693 | 4,442,092
Energy | 12,216,572 | 1,579,994 | 152,495 | 99,742 | 14,048,803
Construction and building materials | 4,337,270 | 3,824,765 | 524,767 | 198,912 | 8,885,714
Automotive | 2,024,104 | 395,657 | 93,396 | 49,885 | 2,563,042
Cyclical Consumer Products | 779,287 | 829,814 | 198,018 | 44,307 | 1,851,426
Non-Cyclical Consumer Products | 2,727,393 | 1,704,274 | 315,724 | 38,987 | 4,786,378
Machinery | 454,569 | 847,254 | 169,425 | 13,048 | 1,484,296
Transportation | 1,835,161 | 2,024,011 | 431,060 | 163,157 | 4,453,389
TMT and Paper & Packaging | 475,082 | 265,847 | 64,765 | 19,962 | 825,656
Healthcare & Services | 2,112,845 | 1,312,865 | 139,894 | 23,718 | 3,589,322
Hotels, Gaming & Leisure Industry | 137,855 | 245,300 | 108,107 | 21,503 | 512,765
Real Estate | 4,279,102 | 169,271 | 73,950 | 5,517 | 4,527,840
Public Sector | 53,509,232 | 233,305 | 73,448 | 1,782 | 53,817,767
Financial Institutions | 10,172,108 | 1,058,419 | 32,589 | 769 | 11,263,885
Private Households | 32,566,962 | 3,624,619 | 872,443 | 930,478 | 37,994,502
Other | - | - | - | - | -
Total | 129,005,143 | 20,208,989 | 3,740,285 | 2,092,460 | 155,046,877

|  |  |  | 31.12.2024 | Group
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Natural Resources & Commodities | 1,751,252 | 2,569,418 | 739,332 | 174,703 | 5,234,705
Energy | 9,798,040 | 1,897,963 | 185,312 | 25,687 | 11,907,002
Construction and building materials | 4,070,298 | 3,194,446 | 679,393 | 305,559 | 8,249,696
Automotive | 1,558,926 | 540,656 | 109,959 | 56,127 | 2,265,668
Cyclical Consumer Products | 703,624 | 838,333 | 251,060 | 51,261 | 1,844,278
Non-Cyclical Consumer Products | 2,327,249 | 1,630,360 | 340,644 | 43,769 | 4,342,022
Machinery | 326,529 | 648,297 | 148,108 | 19,416 | 1,142,350
Transportation | 1,894,002 | 2,249,198 | 326,251 | 144,747 | 4,614,198
TMT and Paper & Packaging | 308,607 | 341,728 | 72,733 | 22,632 | 745,700
Healthcare & Services | 979,519 | 1,681,766 | 137,221 | 25,776 | 2,824,282
Hotels, Gaming & Leisure Industry | 186,277 | 187,546 | 101,251 | 18,154 | 493,228
Real Estate | 3,561,790 | 276,923 | 61,108 | 5,943 | 3,905,764
Public Sector | 48,223,420 | 76,092 | 62,727 | 218 | 48,362,457
Financial Institutions | 10,407,678 | 502,429 | 32,710 | 495 | 10,943,312
Private Households | 28,669,784 | 3,439,403 | 779,574 | 1,041,560 | 33,930,321
Other | - | - | 254,339 | - | 254,339
Total | 114,766,995 | 20,074,558 | 4,281,722 | 1,936,047 | 141,059,322

56
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  | 31.12.2025 | Bank
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Natural Resources & Commodities | 1,319,767 | 1,845,672 | 378,510 | 442,712 | 3,986,661
Energy | 12,088,142 | 1,533,931 | 144,057 | 97,504 | 13,863,634
Construction and building materials | 4,074,138 | 3,169,249 | 373,300 | 164,870 | 7,781,557
Automotive | 1,684,389 | 223,116 | 34,576 | 34,130 | 1,976,211
Cyclical Consumer Products | 756,200 | 656,558 | 156,696 | 36,036 | 1,605,490
Non-Cyclical Consumer Products | 2,615,592 | 1,548,938 | 288,683 | 32,401 | 4,485,614
Machinery | 435,902 | 813,916 | 105,006 | 11,728 | 1,366,552
Transportation | 1,687,480 | 962,642 | 157,404 | 117,356 | 2,924,882
TMT and Paper & Packaging | 464,906 | 221,748 | 48,699 | 19,421 | 754,774
Healthcare & Services | 2,076,500 | 1,081,637 | 55,650 | 19,538 | 3,233,325
Hotels, Gaming & Leisure Industry | 121,635 | 115,791 | 52,542 | 15,689 | 305,657
Real Estate | 4,274,225 | 103,519 | 18,633 | 4,060 | 4,400,437
Public Sector | 53,373,505 | 232,798 | 72,839 | 1,782 | 53,680,924
Financial Institutions | 16,112,631 | 1,025,857 | 28,269 | 769 | 17,167,526
Private Households | 32,562,998 | 3,624,292 | 871,855 | 924,038 | 37,983,183
Other | - | - | - | - | -
Total | 133,648,010 | 17,159,664 | 2,786,719 | 1,922,034 | 155,516,427

|  |  |  | 31.12.2024 | Bank
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Natural Resources & Commodities | 1,680,887 | 2,257,921 | 635,926 | 152,234 | 4,726,968
Energy | 9,705,879 | 1,847,712 | 179,053 | 24,514 | 11,757,158
Construction and building materials | 3,828,142 | 2,642,110 | 553,671 | 253,213 | 7,277,136
Automotive | 1,451,299 | 367,567 | 75,339 | 25,953 | 1,920,158
Cyclical Consumer Products | 651,029 | 722,369 | 214,449 | 44,773 | 1,632,620
Non-Cyclical Consumer Products | 2,227,262 | 1,471,165 | 309,236 | 39,258 | 4,046,921
Machinery | 310,766 | 574,108 | 128,729 | 17,839 | 1,031,442
Transportation | 1,759,953 | 1,148,602 | 203,524 | 105,605 | 3,217,684
TMT and Paper & Packaging | 302,539 | 297,270 | 62,280 | 21,797 | 683,886
Healthcare & Services | 933,224 | 1,488,888 | 87,067 | 18,261 | 2,527,440
Hotels, Gaming & Leisure Industry | 168,874 | 82,521 | 70,712 | 14,857 | 336,964
Real Estate | 3,552,008 | 210,008 | 29,761 | 4,024 | 3,795,801
Public Sector | 48,097,024 | 73,553 | 62,366 | 218 | 48,233,161
Financial Institutions | 15,032,297 | 480,510 | 30,897 | 2,766 | 15,546,470
Private Households | 28,663,794 | 3,438,745 | 778,685 | 1,034,286 | 33,915,510
Other | - | - | 254,339 | - | 254,339
Total | 118,364,977 | 17,103,049 | 3,676,034 | 1,759,598 | 140,903,658

With 83.2%, the low-risk exposure has the highest share in total credit risk exposure, while management attention
represents 13.0% for BCR Group as of December 2025. The substandard exposure contributes 2.4% and the non-performing
category with 1.3%. In case of BCR standalone the low risk exposure increased by RON 15,283,033 (from almost RON
118.364.977 thousands as of 31 December 2024 to approximately RON 133.648.010 thousands as of 31 December 2025),
representing the highest share in total credit risk exposure 85.9%. Management attention represents 11.0% for BCR
standalone as of December 2025 while the substandard exposure contributes 1.8% and the non-performing category with
1.2%.
57
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Credit risk exposure by region and risk category

|  |  |  | 31.12.2025 | Group
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Core markets | 121,730,287 | 19,915,036 | 3,708,066 | 2,085,791 | 147,439,180
Austria | 1,494,186 | 13,428 | 2 | 182 | 1,507,798
Romania | 120,146,890 | 19,901,605 | 3,708,063 | 2,078,582 | 145,835,140
Slovakia | 14,432 | - | - | 7,027 | 21,459
Czech Republic | 18,687 | 1 | - | - | 18,688
Hungary | 56,092 | 2 | 1 | - | 56,095
Other EU | 6,576,665 | 3,014 | 29,822 | 5,787 | 6,615,288
Other industrialised countries | 561,408 | 687 | 381 | 742 | 563,218
Emerging markets | 136,783 | 290,252 | 2,016 | 140 | 429,191
Southeastern Europe/CIS | 1,721 | 289,797 | 1,977 | 54 | 293,549
Asia | 19,259 | 69 | 38 | 65 | 19,431
Latin America | 43 | 1 | - | 1 | 45
Middle East/Africa | 115,760 | 385 | 1 | 20 | 116,166
Total | 129,005,143 | 20,208,989 | 3,740,285 | 2,092,460 | 155,046,877

|  |  |  | 31.12.2024 | Group
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Core markets | 109,808,608 | 19,880,497 | 4,247,392 | 1,932,565 | 135,869,062
Austria | 3,500,844 | 14,745 | 3 | 184 | 3,515,776
Romania | 106,049,619 | 19,865,409 | 4,239,117 | 1,932,378 | 132,086,523
Slovakia | 13,715 | 341 | 8,271 | - | 22,327
Czech Republic | 51,228 | 1 | - | - | 51,229
Hungary | 193,096 | - | 1 | 1 | 193,098
Other EU | 4,615,487 | 41,522 | 28,510 | 2,275 | 4,687,686
Other industrialised countries | 324,648 | 226 | 5,326 | 1,008 | 331,207
Emerging markets | 18,358 | 152,314 | 494 | 201 | 171,367
Southeastern Europe/CIS | 1,812 | 26,745 | 273 | 83 | 28,913
Asia | 13,482 | 73 | 103 | 60 | 13,718
Latin America | - | 1 | - | 2 | 3
Middle East/Africa | 3,064 | 125,495 | 118 | 56 | 128,733
Total | 114,766,995 | 20,074,558 | 4,281,722 | 1,936,047 | 141,059,322

58
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  | 31.12.2025 | Bank
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Core markets | 126,373,154 | 16,865,712 | 2,758,750 | 1,915,366 | 147,912,982
Austria | 1,494,186 | 13,394 | 2 | 182 | 1,507,764
Romania | 124,789,757 | 16,852,314 | 2,758,747 | 1,908,157 | 146,308,975
Slovakia | 14,432 | - | - | 7,027 | 21,459
Czech Republic | 18,687 | 2 | - | - | 18,689
Hungary | 56,092 | 2 | 1 | - | 56,095
Other EU | 6,576,665 | 3,014 | 25,572 | 5,787 | 6,611,038
Other industrialised countries | 561,408 | 686 | 381 | 741 | 563,216
Emerging markets | 136,783 | 290,252 | 2,016 | 140 | 429,191
Southeastern Europe/CIS | 1,721 | 289,797 | 1,977 | 54 | 293,549
Asia | 19,259 | 69 | 38 | 65 | 19,431
Latin America | 43 | 1 | - | 1 | 45
Middle East/Africa | 115,760 | 385 | 1 | 20 | 116,166
Total | 133,648,010 | 17,159,664 | 2,786,719 | 1,922,034 | 155,516,427

|  |  |  | 31.12.2024 | Bank
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Core markets | 113,406,590 | 16,908,991 | 3,644,886 | 1,756,116 | 135,716,583
Austria | 3,500,844 | 14,652 | 3 | 184 | 3,515,683
Romania | 109,647,601 | 16,894,335 | 3,636,611 | 1,755,929 | 131,934,476
Slovakia | 13,715 | - | 8,271 | - | 21,986
Czech Republic | 51,228 | 2 | - | - | 51,230
Hungary | 193,096 | 1 | 1 | 1 | 193,099
Other EU | 4,615,487 | 41,522 | 25,328 | 2,274 | 4,684,504
Other industrialised countries | 324,648 | 226 | 5,326 | 1,009 | 331,207
Emerging markets | 18,358 | 152,311 | 494 | 201 | 171,364
Southeastern Europe/CIS | 1,812 | 26,745 | 273 | 83 | 28,913
Asia | 13,482 | 70 | 103 | 60 | 13,715
Latin America | - | 1 | - | 2 | 3
Middle East/Africa | 3,064 | 125,495 | 118 | 56 | 128,733
Total | 118,364,977 | 17,103,049 | 3,676,034 | 1,759,598 | 140,903,658

The geographic analysis of credit risk exposure is based on the country of risk of borrowers and counterparties. It also
includes obligors domiciled in other countries if the economic risk exists in the respective country of risk.
Credit risk exposure increased in absolute figures mainly in Romania with RON 13,748,617 thousands from RON
132,086,523 thousands in 2024 to RON 145,835,140 thousands in 2025 in case of Group. The increase in exposure in main
market - Romania registered at Group level is also observed at Bank level: increase with RON 14,374,499 thousands from
RON 131,934,476 thousands in 2024 to RON 146,308,975 thousands in 2025. In total, BCR Group’s core markets and the
EU accounted for 99.4% (2024: 99.6%) of credit risk exposure.
59
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Credit risk exposure by business segment and risk category

|  |  |  | 31.12.2025 | Group
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Retail | 33,716,830 | 5,071,979 | 2,027,414 | 1,178,475 | 41,994,698
Corporates | 43,307,948 | 14,800,533 | 1,684,963 | 913,473 | 60,706,917
Group Markets | 10,698,725 | 332,993 | 25,149 | - | 11,056,867
Asset/Liability Management and Local Corporate Center | 41,281,640 | 3,484 | 2,759 | 512 | 41,288,395
Total | 129,005,143 | 20,208,989 | 3,740,285 | 2,092,460 | 155,046,877

|  |  |  | 31.12.2024 | Group
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Retail | 29,653,493 | 4,884,939 | 2,144,923 | 1,280,544 | 37,963,899
Corporates | 37,684,247 | 14,932,558 | 1,854,898 | 655,296 | 55,126,999
Group Markets | 9,443,212 | 254,906 | 25,389 | - | 9,723,507
Asset/Liability Management and Local Corporate Center | 37,986,043 | 2,155 | 256,512 | 207 | 38,244,917
Total | 114,766,995 | 20,074,558 | 4,281,722 | 1,936,047 | 141,059,322

|  |  |  | 31.12.2025 | Bank
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Retail | 33,478,331 | 4,195,434 | 1,421,575 | 1,096,510 | 40,191,850
Corporates | 42,245,915 | 12,627,753 | 1,337,236 | 825,012 | 57,035,916
Group Markets | 10,703,725 | 332,993 | 25,149 | - | 11,061,867
Asset/Liability Management and Local Corporate Center | 47,220,039 | 3,484 | 2,759 | 512 | 47,226,794
Total | 133,648,010 | 17,159,664 | 2,786,719 | 1,922,034 | 155,516,427

|  |  |  | 31.12.2024 | Bank
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Retail | 29,437,189 | 4,082,601 | 1,682,815 | 1,210,935 | 36,413,540
Corporates | 36,870,611 | 12,698,901 | 1,711,317 | 546,086 | 51,826,915
Group Markets | 9,449,994 | 261,882 | 25,390 | - | 9,737,266
Asset/Liability Management and Local Corporate Center | 42,607,183 | 59,665 | 256,512 | 2,577 | 42,925,937
Total | 118,364,977 | 17,103,049 | 3,676,034 | 1,759,598 | 140,903,658

Low risk exposure has a share in total credit risk exposure (Group: 83.2% and Bank: 85.9%) as of December 2025, higher
than 2024 (Group: 81.4% and Bank: 84%).
Non-performing risk category registered a decrease in 2025 for BCR Group (2025: 1.3% and 2024: 1.4%) and was stable for
the Bank (2025: 1.2% and 2024: 1.2%). This trend reflects the continuous workout efforts to diminish the non-performing
stock through recoveries, healings and write-offs.
60
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Main types of collateral
The following types of collateral are accepted:
• real estate comprises residential and commercial real estate;
• financial collateral: such as securities, cash deposits and life insurance policies;
• guarantees given by sovereigns, public sector entities, financial institutes, companies and individuals. All
guarantors must have a minimum credit rating, which is reviewed annually;
• movables: such as equipment, investment goods, machineries and motor vehicles;
• claims and rights: such as account receivables of trade, leasehold rights and shares in a company’s capital.
Synthetic securitisations of loan portfolios are non-integral guarantees in the business of BCR Group. BCR Group uses
synthetic securitisations for portfolios of loans to SME, corporate customers, commercial real estate loans and residential
mortgages. No transfer of loans and set up of SPVs are involved. Each synthetic securitisation transaction is structured so
that credit losses on the underlying loans are allocated on a waterfall basis first to the excess spread, then to the junior
tranche, mezzanine tranche and finally to the senior tranche. The losses related to the excess spread and the junior tranche,
but also to the senior tranche, are borne by BCR Group. BCR Group receives a guarantee in relation to the volume of the
mezzanine tranche. The guarantee providers are external parties to BCR Group including Supranational and institutional
investors (mainly insurance companies). For accounting purposes, BCR Group treats synthetic securitisations as non-
integral guarantees (see chapter Financial instruments – Material accounting policies, part Impairment of financial
instruments). For regulatory capital purposes, the synthetic securitisations reduce risk weights of the underlying loans
which is the primary objective of BCR Group for undertaking the transactions.
The following table compares the credit risk exposure and allocated collateral broken down by financial instrument.
The allocated collateral values are capped by the amount of the secured transaction.
Credit risk exposure by financial instrument and collateral

|  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Total credit risk exposure | Collateral total | Collateralised by | Credit risk exposure net of collateral | IFRS9 impairment relevant
Guarantees | Real estate | Other | Neither past due nor credit impaired | Past due but not credit impaired | Credit impaired
Cash and cash balances - demand deposits to central banks and credit institutions | 114,045 | - | - | - | - | 114,045 | 114,045 | - | -
Debt instruments held for trading | 3,329,764 | - | - | - | - | 3,329,764 | - | - | -
Non-trading debt instruments at FVPL | 5,490 | - | - | - | - | 5,490 | - | - | -
Debt instruments at FVOCI | 13,024,305 | - | - | - | - | 13,024,305 | 13,024,305 | - | -
Debt instruments at AC | 104,458,503 | 35,191,807 | 4,326,645 | 20,944,312 | 9,920,850 | 69,266,696 | 98,265,556 | 4,168,834 | 2,024,113
Debt securities | 23,258,717 | - | - | - | - | 23,258,717 | 23,258,717 | - | -
Loans and advances to banks | 5,572,305 | 5,317,023 | - | - | 5,317,023 | 255,282 | 5,572,305 | - | -
Loans and advances to customers | 71,885,826 | 27,820,411 | 4,326,645 | 20,938,562 | 2,555,204 | 44,065,415 | 65,980,889 | 3,992,577 | 1,912,360
Trade and other receivables | 982,282 | - | - | - | - | 982,282 | 922,524 | 27,124 | 32,634
Finance lease receivables | 2,759,373 | 2,054,373 | - | 5,750 | 2,048,623 | 704,999 | 2,531,121 | 149,133 | 79,119
Off balance-sheet exposures | 34,114,770 | 5,382,125 | 278,454 | 439,106 | 4,664,565 | 28,732,645 | 28,900,589 | - | 68,107
out of which: other commitments | 5,146,074 | 2,378,823 | - | 22,841 | 2,355,982 | 2,767,251 | - | - | -
Total | 155,046,877 | 40,573,932 | 4,605,099 | 21,383,418 | 14,585,415 | 114,472,945 | 140,304,495 | 4,168,834 | 2,092,220

61
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands |  |  | Collateralised by | Credit risk exposure net of collateral | IFRS9 impairment relevant
Total credit risk exposure | Collateral total | Guarantees | Real estate | Other | Neither past due nor credit impaired | Past due but not credit impaired | Credit impaired
Cash and cash balances - demand deposits to central banks and credit institutions | 264,333 | - | - | - | - | 264,333 | 264,333 | - | -
Debt instruments held for trading | 1,912,779 | - | - | - | - | 1,912,779 | - | - | -
Non-trading debt instruments at FVPL | 12,517 | - | - | - | - | 12,517 | - | - | -
Debt instruments at FVOCI | 12,719,382 | - | - | - | - | 12,719,382 | 12,719,382 | - | -
Debt instruments at AC | 96,443,601 | 34,321,991 | 6,119,371 | 18,073,120 | 10,129,500 | 62,121,610 | 90,729,889 | 3,893,227 | 1,820,485
Debt securities | 20,632,200 | - | - | - | - | 20,632,200 | 20,632,200 | - | -
Loans and advances to banks | 6,004,786 | 5,836,990 | - | - | 5,836,990 | 167,796 | 6,004,786 | - | -
Loans and advances to customers | 66,363,544 | 26,593,224 | 6,119,371 | 18,067,418 | 2,406,435 | 39,770,320 | 60,898,683 | 3,769,533 | 1,695,328
Trade and other receivables | 1,037,882 | 3,851 | - | 9 | 3,842 | 1,034,031 | 996,932 | 13,976 | 26,974
Finance lease receivables | 2,405,189 | 1,887,926 | - | 5,693 | 1,882,233 | 517,263 | 2,197,288 | 109,718 | 98,183
Off balance-sheet exposures | 29,706,710 | 6,453,502 | 297,265 | 376,084 | 5,780,153 | 23,253,208 | 25,507,326 | - | 115,453
out of which: other commitments | 4,083,931 | 3,046,162 | - | 12,920 | 3,033,242 | 1,037,769 | - | - | -
Total | 141,059,322 | 40,775,493 | 6,416,636 | 18,449,204 | 15,909,653 | 100,283,829 | 129,220,930 | 3,893,227 | 1,935,938

|  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands |  |  | Collateralised by | Credit risk exposure net of collateral | IFRS9 impairment relevant
Total credit risk exposure | Collateral total | Guarantees | Real estate | Other | Neither past due nor credit impaired | Past due but not credit impaired | Credit impaired
Cash and cash balances - demand deposits to central banks and credit institutions | 113,368 | - | - | - | - | 113,368 | 113,368 | - | -
Debt instruments held for trading | 3,329,764 | - | - | - | - | 3,329,764 | - | - | -
Non-trading debt instruments at FVPL | 5,490 | - | - | - | - | 5,490 | - | - | -
Debt instruments at FVOCI | 13,024,304 | - | - | - | - | 13,024,304 | 13,024,304 | - | -
Debt instruments at AC | 103,851,761 | 31,343,354 | 4,326,645 | 20,937,821 | 6,078,888 | 72,508,407 | 98,161,613 | 3,836,243 | 1,853,905
Debt securities | 23,125,184 | - | - | - | - | 23,125,184 | 23,125,184 | - | -
Loans and advances to banks | 5,567,071 | 5,317,023 | - | - | 5,317,023 | 250,048 | 5,567,071 | - | -
Loans and advances to customers | 74,158,837 | 26,026,331 | 4,326,645 | 20,937,821 | 761,865 | 48,132,506 | 68,512,808 | 3,812,968 | 1,833,061
Trade and other receivables | 970,265 | - | - | - | - | 970,265 | 926,146 | 23,275 | 20,844
Finance lease receivables | 30,404 | - | - | - | - | 30,404 | 30,404 | - | -
Off balance-sheet exposures | 35,191,740 | 5,356,493 | 278,454 | 439,106 | 4,638,933 | 29,835,247 | 29,972,778 | - | 67,888
out of which: other commitments | 5,151,074 | 2,378,823 | - | 22,841 | 2,355,982 | 2,772,251 | - | - | -
Total | 155,516,427 | 36,699,847 | 4,605,099 | 21,376,927 | 10,717,821 | 118,816,580 | 141,272,063 | 3,836,243 | 1,921,793

62
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands |  |  | Collateralised by | Credit risk exposure net of collateral | IFRS9 impairment relevant
Total credit risk exposure | Collateral total | Guarantees | Real estate | Other | Neither past due nor credit impaired | Past due but not credit impaired | Credit impaired
Cash and cash balances - demand deposits to central banks and credit institutions | 263,995 | - | - | - | - | 263,995 | 263,995 | - | -
Debt instruments held for trading | 1,912,779 | - | - | - | - | 1,912,779 | - | - | -
Non-trading debt instruments at FVPL | 12,517 | - | - | - | - | 12,517 | - | - | -
Debt instruments at FVOCI | 12,719,382 | - | - | - | - | 12,719,382 | 12,719,382 | - | -
Debt instruments at AC | 95,896,610 | 30,744,454 | 6,119,371 | 18,066,762 | 6,558,321 | 65,152,156 | 90,669,880 | 3,582,587 | 1,644,143
Debt securities | 20,505,886 | - | - | - | - | 20,505,886 | 20,505,886 | - | -
Loans and advances to banks | 5,960,867 | 5,836,990 | - | - | 5,836,990 | 123,877 | 5,960,867 | - | -
Loans and advances to customers | 68,392,624 | 24,907,464 | 6,119,371 | 18,066,762 | 721,331 | 43,485,160 | 63,193,727 | 3,571,768 | 1,627,129
Trade and other receivables | 1,021,004 | - | - | - | - | 1,021,004 | 995,541 | 10,819 | 14,644
Finance lease receivables | 16,229 | - | - | - | - | 16,229 | 13,859 | - | 2,370
Off balance-sheet exposures | 30,098,375 | 6,453,502 | 297,265 | 376,084 | 5,780,153 | 23,644,873 | 25,887,016 | - | 115,454
out of which: other commitments | 4,095,905 | 3,046,162 | - | 12,920 | 3,033,242 | 1,049,743 | - | - | -
Total | 140,903,658 | 37,197,956 | 6,416,636 | 18,442,846 | 12,338,474 | 103,705,702 | 129,540,273 | 3,582,587 | 1,759,597

In addition to the amounts in the table, loans and advances to customers at amortized cost with outstanding nominal value
of RON 3,445 milions (2024: 0) are guaranteed through synthetic securitisation transactions as explained above. The
unguaranteed first loss portion which is related to the excess spread and the junior tranches amounts to RON 137.3 milions
(2024: 0). The credit protection received relates to the mezzanine tranches which amount to RON 342.7 milions (2024: 0).
63
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Development of Credit Loss Allowances (CLA)
The following tables give an overview over the development of credit loss allowances per balance sheet line item. The
exposures are presented in Note 15.1.
The movements in allowances for financial assets at amortized cost - Debt securities

|  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Exchange-rate and other changes (+/-) | Closing Balance
Debt securities |  |  |  |  |  |  |
Stage 1 | -8,880 | -3,691 | 3,473 | -868 | - | -26 | -9,992
General governments | -8,880 | -3,691 | 3,473 | -868 | - | -26 | -9,992
Stage 2 | -5 | - | - | 1 | - | - | -4
General governments | -5 | - | - | 1 | - | - | -4
Total | -8,885 | -3,691 | 3,473 | -867 | - | -26 | -9,996

|  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Exchange-rate and other changes (+/-) | Closing Balance
Debt securities |  |  |  |  |  |  |
Stage 1 | -7,494 | -3,214 | 1,804 | -109 | 26 | 107 | -8,880
General governments | -7,494 | -3,214 | 1,804 | -109 | 26 | 107 | -8,880
Stage 2 | -36 | - | - | 38 | -7 | - | -5
General governments | -36 | - | - | 38 | -7 | - | -5
Total | -7,530 | -3,214 | 1,804 | -71 | 19 | 107 | -8,885

|  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Exchange-rate and other changes (+/-) | Closing Balance
Debt securities |  |  |  |  |  |  |
Stage 1 | -8,826 | -3,687 | 3,473 | -870 | - | -26 | -9,936
General governments | -8,826 | -3,687 | 3,473 | -870 | - | -26 | -9,936
Stage 2 | -6 | - | - | 2 | - | - | -4
General governments | -6 | - | - | 2 | - | - | -4
Total | -8,832 | -3,687 | 3,473 | -868 | - | -26 | -9,940

|  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Exchange-rate and other changes (+/-) | Closing Balance
Debt securities |  |  |  |  |  |  |
Stage 1 | -7,443 | -3,195 | 1,790 | -111 | 26 | 107 | -8,826
General governments | -7,443 | -3,195 | 1,790 | -111 | 26 | 107 | -8,826
Stage 2 | -36 | - | - | 38 | -8 | - | -6
General governments | -36 | - | - | 38 | -8 | - | -6
Total | -7,479 | -3,195 | 1,790 | -73 | 18 | 107 | -8,832

In column ‘Increases due to origination and acquisition’ increases of CLA due to the initial recognition of debt securities at
AC during the current reporting period are disclosed.
Releases of CLA following the derecognition of the related debt securities at AC are reported in column ‘Decreases due to
derecognition’.
64
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

In column ‘Transfers between stages’ CLA net changes due to changes in credit risk that triggered re-assignments of the
related AC debt securities from Stage 1 (on 1 January 2025 or initial recognition date) to Stages 2 or 3 at 31 December 2025
or vice-versa are reported. The effects of transfers from Stage 1 to Stages 2 or 3 on the related CLAs are adverse and
presented in lines attributable to Stages 2 or 3. The effects of transfers from Stages 2 or 3 to Stage 1 on the related CLAs are
favorable and presented in line ‘Stage 1’.
Any other changes in credit risk which do not trigger a transfer between Stage 1 and Stage 2 or 3 or vice-versa are disclosed
in raw ‘Net changes due to change in credit risk (net)’.
The movements in allowances loans and advances to banks
The exposures are presented in Note 15.2.

|  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Net changes due to modifications without derecognition | Exchange- rate and other changes (+/-) | Closing Balance
Loans and advances to banks |  |  |  |  |  |  |
Stage 1 | -57 | -362 | 227 | -4 | - | - | -196
Credit institutions | -57 | -362 | 227 | -4 | - | - | -196
Stage 2 | - | - | - | 116 | -116 | - | -
Credit institutions | - | - | - | 116 | -116 | - | -
Total | -57 | -362 | 227 | 112 | -116 | - | -196

|  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Net changes due to modifications without derecognition | Exchange- rate and other changes (+/-) | Closing Balance
Loans and advances to banks |  |  |  |  |  |  |
Stage 1 | -33 | -150 | 127 | -1 | - | - | -57
Credit institutions | -33 | -150 | 127 | -1 | - | - | -57
Total | -33 | -150 | 127 | -1 | - | - | -57

|  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Net changes due to modifications without derecognition | Exchange- rate and other changes (+/-) | Closing Balance
Loans and advances to banks |  |  |  |  |  |  |
Stage 1 | -41 | -362 | 227 | -21 | - | - | -197
Credit institutions | -41 | -362 | 227 | -21 | - | - | -197
Stage 2 | - | - | - | 116 | -116 | - | -
Credit institutions | - | - | - | 116 | -116 | - | -
Total | -41 | -362 | 227 | 95 | -116 | - | -197

65
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Net changes due to modifications without derecognition | Exchange- rate and other changes (+/-) | Closing Balance
Loans and advances to banks |  |  |  |  |  |  |
Stage 1 | -311 | -133 | 405 | -2 | - | - | -41
Credit institutions | -311 | -133 | 405 | -2 | - | - | -41
Stage 2 | -223 | - | 223 | - | - | - | -
Credit institutions | -223 | - | 223 | - | - | - | -
Total | -534 | -133 | 628 | -2 | - | - | -41

In column ‘Increases due to origination and acquisition’ increases of CLA due to the initial recognition of loans and
advances to banks at AC during the current reporting period are disclosed. Releases of CLA following the derecognition of
the related loans and advances to banks at AC are reported in column ‘Decreases due to derecognition’.
Any changes in credit risk which do not trigger a transfer between Stage 1 and Stage 2 or 3 or vice-versa are disclosed in
column ‘Net changes due to change in credit risk’.
The movements in allowances - loans and advances to customers
The exposures are presented in Note 15.3.

|  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition (1) | Decreases due to derecognition (2) | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 (3) | Net changes due to modifications without derecognition (4) | Decrease in allowance account due to write-offs and POCI loans (5) | Exchange- rate and other changes (+/-) | Closing Balance
Loans and advances to customers |  |  |  |  |  |  |  |  |
Stage 1 | -432,363 | -306,433 | 148,838 | -221,000 | 391,817 | - | 139 | -7,138 | -426,140
General governments | -9,925 | -9,866 | 9,830 | -1,970 | 304 | - | - | 5,241 | -6,386
Other financial corporations | -6,526 | -3,106 | 1,256 | 4,592 | 2,284 | - | - | -1,178 | -2,678
Non-financial corporations | -243,586 | -150,342 | 97,676 | -32,310 | 122,319 | - | - | -3,571 | -209,814
Households | -172,326 | -143,119 | 40,076 | -191,312 | 266,910 | - | 139 | -7,630 | -207,262
Stage 2 | -1,067,655 | -50,355 | 186,042 | 302,854 | -73,347 | 3,653 | 83 | -57,626 | -756,351
General governments | -39,334 | - | 1 | -3,384 | -16 | 170 | - | 33,616 | -8,947
Other financial corporations | -7,953 | -2,591 | 127 | -5,189 | -645 | - | - | 1,935 | -14,316
Non-financial corporations | -602,003 | -38,547 | 122,062 | 271,657 | -49,551 | -49 | - | -82,142 | -378,573
Households | -418,365 | -9,217 | 63,852 | 39,770 | -23,135 | 3,532 | 83 | -11,035 | -354,515
Stage 3 | -1,424,806 | - | 601,696 | -1,011,654 | -4,635 | 2,132 | 359,078 | 124,219 | -1,353,970
General governments | -687 | - | - | 47 | - | - | - | 472 | -168
Other financial corporations | -776 | - | 474 | -954 | - | - | 540 | - | -716
Non-financial corporations | -506,031 | - | 241,168 | -801,791 | -4,545 | 1,241 | 282,593 | 127,585 | -659,780
Households | -917,312 | - | 360,054 | -208,956 | -90 | 891 | 75,945 | -3,838 | -693,306
POCI | -28,627 | - | 1,647 | 12,825 | - | 347 | 822 | -2,044 | -15,030
General governments | -15 | - | - | -20 | - | 26 | - | - | -9
Non-financial corporations | -2,295 | - | 75 | 3,328 | - | 134 | 74 | -1,677 | -361
Households | -26,317 | - | 1,572 | 9,517 | - | 187 | 748 | -367 | -14,660
Total | -2,953,451 | -356,788 | 938,223 | -916,975 | 313,835 | 6,132 | 360,122 | 57,411 | -2,551,491

66
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition (1) | Decreases due to derecognition (2) | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 (3) | Net changes due to modifications without derecognition (4) | Decrease in allowance account due to write-offs and POCI loans (5) | Exchange- rate and other changes (+/-) | Closing Balance
Loans and advances to customers |  |  |  |  |  |  |  |  |
Stage 1 | -351,154 | -338,701 | 115,653 | -405,482 | 553,216 | - | 34 | -5,929 | -432,363
General governments | -5,665 | -7,110 | 5,358 | -12,176 | 8,878 | - | - | 790 | -9,925
Other financial corporations | -5,651 | -2,287 | 21 | 1,433 | 479 | - | - | -521 | -6,526
Non-financial corporations | -230,654 | -131,243 | 78,083 | -170,243 | 206,930 | - | - | 3,541 | -243,586
Households | -109,184 | -198,061 | 32,191 | -224,496 | 336,929 | - | 34 | -9,739 | -172,326
Stage 2 | -1,289,433 | -134,321 | 313,747 | 177,517 | -97,890 | 7,231 | 33 | -44,539 | -1,067,655
General governments | -33,176 | - | 94 | -3,286 | -1,716 | 1,033 | - | -2,283 | -39,334
Other financial corporations | -10,317 | - | 92 | 2,469 | -236 | - | - | 39 | -7,953
Non-financial corporations | -696,746 | -127,429 | 231,116 | 81,916 | -65,358 | 184 | - | -25,686 | -602,003
Households | -549,194 | -6,892 | 82,445 | 96,418 | -30,580 | 6,014 | 33 | -16,609 | -418,365
Stage 3 | -1,151,635 | - | 150,971 | -534,817 | -6,578 | 1,341 | 111,552 | 4,360 | -1,424,806
General governments | -838 | - | - | 228 | - | - | - | -77 | -687
Other financial corporations | -653 | - | - | -123 | - | - | - | - | -776
Non-financial corporations | -305,793 | - | 33,356 | -298,399 | -6,262 | 61 | 71,014 | -8 | -506,031
Households | -844,351 | - | 117,615 | -236,523 | -316 | 1,280 | 40,538 | 4,445 | -917,312
POCI | -35,889 | - | 2,664 | 1,975 | - | 171 | 1,319 | 1,133 | -28,627
General governments | -19 | - | - | 4 | - | - | - | - | -15
Non-financial corporations | -2,650 | - | 362 | -1,375 | - | -23 | 75 | 1,316 | -2,295
Households | -33,220 | - | 2,302 | 3,346 | - | 194 | 1,244 | -183 | -26,317
Total | -2,828,111 | -473,022 | 583,035 | -760,807 | 448,748 | 8,743 | 112,938 | -44,975 | -2,953,451

|  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition (1) | Decreases due to derecognition (2) | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 (3) | Net changes due to modifications without derecognition (4) | Decrease in allowance account due to write-offs and POCI loans (5) | Exchange- rate and other changes (+/-) | Closing Balance
Loans and advances to customers |  |  |  |  |  |  |  |  |
Stage 1 | -411,688 | -287,637 | 145,811 | -231,351 | 383,768 | - | 139 | -7,138 | -408,096
General governments | -9,925 | -9,866 | 9,830 | -1,970 | 304 | - | - | 5,241 | -6,386
Other financial corporations | -9,401 | -2,744 | 1,210 | 2,712 | 2,275 | - | - | -1,178 | -7,126
Non-financial corporations | -220,314 | -132,352 | 94,722 | -40,674 | 114,516 | - | - | -3,571 | -187,673
Households | -172,048 | -142,675 | 40,049 | -191,419 | 266,673 | - | 139 | -7,630 | -206,911
Stage 2 | -1,049,491 | -50,355 | 182,438 | 291,302 | -54,076 | 3,653 | 83 | -57,626 | -734,072
General governments | -39,334 | - | - | -3,383 | -16 | 170 | - | 33,616 | -8,947
Other financial corporations | -7,920 | -2,591 | 126 | -5,195 | -628 | - | - | 1,935 | -14,273
Non-financial corporations | -584,419 | -38,547 | 118,533 | 260,599 | -31,114 | -49 | - | -82,142 | -357,139
Households | -417,818 | -9,217 | 63,779 | 39,281 | -22,318 | 3,532 | 83 | -11,035 | -353,713
Stage 3 | -1,388,161 | - | 598,772 | -976,520 | -122 | 2,132 | 321,774 | 124,354 | -1,317,771
General governments | -687 | - | - | 47 | - | - | - | 472 | -168
Other financial corporations | -720 | - | 379 | -833 | - | - | 464 | - | -710
Non-financial corporations | -477,777 | - | 238,419 | -766,692 | -32 | 1,241 | 246,222 | 127,585 | -631,034
Households | -908,977 | - | 359,974 | -209,042 | -90 | 891 | 75,088 | -3,703 | -685,859
POCI | -28,627 | - | 1,647 | 12,825 | - | 347 | 822 | -2,044 | -15,030
General governments | -15 | - | - | -20 | - | 26 | - | - | -9
Non-financial corporations | -2,295 | - | 75 | 3,328 | - | 134 | 74 | -1,677 | -361
Households | -26,317 | - | 1,572 | 9,517 | - | 187 | 748 | -367 | -14,660
Total | -2,877,967 | -337,992 | 928,668 | -903,744 | 329,570 | 6,132 | 322,818 | 57,546 | -2,474,969

67
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition (1) | Decreases due to derecognition (2) | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 (3) | Net changes due to modifications without derecognition (4) | Decrease in allowance account due to write-offs and POCI loans (5) | Exchange- rate and other changes (+/-) | Closing Balance
Loans and advances to customers |  |  |  |  |  |  |  |  |
Stage 1 | -336,580 | -322,837 | 115,652 | -407,750 | 545,722 | - | 34 | -5,929 | -411,688
General governments | -5,665 | -7,110 | 5,358 | -12,176 | 8,878 | - | - | 790 | -9,925
Other financial corporations | -10,753 | -2,013 | 21 | 3,829 | 36 | - | - | -521 | -9,401
Non-financial corporations | -211,513 | -115,835 | 78,083 | -174,506 | 199,916 | - | - | 3,541 | -220,314
Households | -108,649 | -197,879 | 32,190 | -224,897 | 336,892 | - | 34 | -9,739 | -172,048
Stage 2 | -1,270,535 | -134,321 | 313,747 | 162,881 | -83,988 | 7,231 | 33 | -44,539 | -1,049,491
General governments | -33,176 | - | 94 | -3,286 | -1,716 | 1,033 | - | -2,283 | -39,334
Other financial corporations | -9,668 | - | 92 | 1,622 | -5 | - | - | 39 | -7,920
Non-financial corporations | -678,835 | -127,429 | 231,116 | 68,172 | -51,941 | 184 | - | -25,686 | -584,419
Households | -548,856 | -6,892 | 82,445 | 96,373 | -30,326 | 6,014 | 33 | -16,609 | -417,818
Stage 3 | -1,115,833 | - | 150,971 | -519,954 | -165 | 1,341 | 89,211 | 6,268 | -1,388,161
General governments | -838 | - | - | 228 | - | - | - | -77 | -687
Other financial corporations | -557 | - | - | -163 | - | - | - | - | -720
Non-financial corporations | -279,281 | - | 33,356 | -284,489 | -48 | 61 | 50,723 | 1,901 | -477,777
Households | -835,157 | - | 117,615 | -235,530 | -117 | 1,280 | 38,488 | 4,444 | -908,977
POCI | -35,889 | - | 2,664 | 1,975 | - | 171 | 1,319 | 1,133 | -28,627
General governments | -19 | - | - | 4 | - | - | - | - | -15
Non-financial corporations | -2,650 | - | 362 | -1,375 | - | -23 | 75 | 1,316 | -2,295
Households | -33,220 | - | 2,302 | 3,346 | - | 194 | 1,244 | -183 | -26,317
Total | -2,758,837 | -457,158 | 583,034 | -762,848 | 461,569 | 8,743 | 90,597 | -43,067 | -2,877,967

(1) Increases of CLA due to the initial recognition of loans and advances to customers at AC during the current reporting
period are disclosed. According to the Bank’s principles for stage 2 allocation, events such as transfer of the client to
workout department, forbearance or client’s;
(2) releases of CLA following the derecognition of the related loans and advances to customers at AC are reported;
(3) changes in credit risk that triggered re-assignments of the related AC loans and advances to customers from Stage 1 at 1
January 2025 (or initial recognition date, if later) to Stages 2 or 3 at 31 December 2025 or vice-versa are reported. The effects
of transfers from Stage 1 to Stages 2 or 3 on the related CLAs are adverse (incremental year-on-year allocations) and
presented in lines attributable to Stages 2 or 3.The effects of transfers from Stages 2 or 3 to Stage 1 on the related CLAs are
favorable (incremental year-on-year releases) and presented in the line Stage 1;
(4) reflects the effect on CLA arising from contractual modifications of loans and advances to customers at AC which do
not trigger their full derecognition;
(5) the use of CLA triggered by full or partial write-offs of AC loans and advances to customers is reported in columns
‘Write-offs’.
Loss allowance movements in 2025 primarily reflect changes in credit quality and the regular update of risk parameters.
• Within the Non‑financial corporations portfolio, the evolution was mainly driven by the recognition of new
defaults, the regular annual review of LGD parameters based on the latest observable recovery data, and the
write‑off of one exposure under legal proceedings.
• In the Household portfolio, allocations related to NPL formation were largely offset by releases from the sale of
non‑performing exposures in the private individuals segment. In addition, the regular annual LGD recalibration
—particularly for secured private individuals—resulted in a net release of loss allowances, together with the
impact of regular stage migrations.
The reconciliation between movement in allowances and net impairment loss is presented in Note 10.
68
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Transfers between impairment stages (gross exposures) for loans and advances to customers are
presented below
The exposures are presented in Note 15.1.

|  |  |  |  | 31.12.2025 | Group
| Transfers between Stage 1 and Stage 2 | Transfers between Stage 2 and Stage 3 | Transfers between Stage 1 and Stage 3
in RON thousands | To Stage 2 from Stage 1 | To Stage 1 from Stage 2 | To Stage 3 from Stage 2 | To Stage 2 from Stage 3 | To Stage 3 from Stage 1 | To Stage 1 from Stage 3
General governments | 167,730 | 14,650 | - | - | - | -
Other financial corporations | 511,827 | 53 | 105 | - | 561 | -
Non-financial corporations | 1,935,273 | 1,278,261 | 316,511 | 3,505 | 264,936 | 401
Households | 1,273,266 | 934,446 | 150,929 | 42,265 | 234,902 | 23,838
Total | 3,888,096 | 2,227,410 | 467,545 | 45,770 | 500,399 | 24,239

|  |  |  |  | 31.12.2024 | Group
| Transfers between Stage 1 and Stage 2 | Transfers between Stage 2 and Stage 3 | Transfers between Stage 1 and Stage 3
in RON thousands | To Stage 2 from Stage 1 | To Stage 1 from Stage 2 | To Stage 3 from Stage 2 | To Stage 2 from Stage 3 | To Stage 3 from Stage 1 | To Stage 1 from Stage 3
General governments | 154,282 | 230,020 | - | - | - | -
Other financial corporations | 7,900 | 14,788 | 62 | 73 | 188 | -
Non-financial corporations | 2,898,120 | 2,294,254 | 210,867 | 44,629 | 177,450 | 1,053
Households | 1,888,031 | 1,100,621 | 162,018 | 40,303 | 158,285 | 16,645
Total | 4,948,333 | 3,639,683 | 372,947 | 85,005 | 335,923 | 17,698

|  |  |  |  | 31.12.2025 | Bank
| Transfers between Stage 1 and Stage 2 | Transfers between Stage 2 and Stage 3 | Transfers between Stage 1 and Stage 3
in RON thousands | To Stage 2 from Stage 1 | To Stage 1 from Stage 2 | To Stage 3 from Stage 2 | To Stage 2 from Stage 3 | To Stage 3 from Stage 1 | To Stage 1 from Stage 3
General governments | 167,730 | 14,650 | - | - | - | -
Other financial corporations | 511,139 | 581,742 | 105 | - | 561 | -
Non-financial corporations | 1,512,908 | 1,212,926 | 289,328 | 1,387 | 238,572 | -
Households | 1,263,772 | 933,642 | 150,739 | 42,187 | 234,556 | 23,838
Total | 3,455,549 | 2,742,960 | 440,172 | 43,574 | 473,689 | 23,838

|  |  |  |  | 31.12.2024 | Bank
| Transfers between Stage 1 and Stage 2 | Transfers between Stage 2 and Stage 3 | Transfers between Stage 1 and Stage 3
in RON thousands | To Stage 2 from Stage 1 | To Stage 1 from Stage 2 | To Stage 3 from Stage 2 | To Stage 2 from Stage 3 | To Stage 3 from Stage 1 | To Stage 1 from Stage 3
General governments | 154,282 | 230,020 | - | - | - | -
Other financial corporations | 2,010 | 132 | 62 | - | 113 | -
Non-financial corporations | 2,326,643 | 1,964,867 | 173,908 | 31,570 | 155,585 | 737
Households | 1,879,798 | 1,098,843 | 159,723 | 40,254 | 157,217 | 16,645
Total | 4,362,733 | 3,293,862 | 333,693 | 71,824 | 312,915 | 17,382

The above transfers include stage changes against the opening of the financial year or initial recognition of the impairment
stage.
69
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The movements in allowances for financial assets at amortized cost – trade and other receivables
The exposures are presented in Note 16.

|  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Net changes due to modifications without derecognition | Decrease in allowance account due to write-offs and POCI loans | Exchange- rate and other changes (+/-) | Closing Balance
Stage 1 | -7,038 | -12,111 | 6,122 | -123 | 211 | 60 | 7,358 | -9 | -5,530
General governments | -37 | -44 | 11 | 62 | - | - | - | - | -8
Credit institutions | -126 | -998 | 100 | 956 | 8 | - | - | 2 | -58
Other financial corporations | -798 | -3,190 | 194 | 2,418 | 1 | 45 | 1 | -2 | -1,331
Non-financial corporations | -5,978 | -7,760 | 5,661 | 3,724 | 167 | 15 | 157 | -9 | -4,023
Households | -99 | -119 | 156 | -7,283 | 35 | - | 7,200 | - | -110
Stage 2 | -4,221 | - | 4,262 | -8,193 | -135 | -21 | 3,716 | - | -4,592
General governments | -10 | - | 3 | 5 | -13 | - | 1 | - | -14
Credit institutions | -4 | - | - | -181 | - | - | - | - | -185
Other financial corporations | -1,272 | - | 1,207 | -2,176 | -1 | - | 4 | 9 | -2,229
Non-financial corporations | -2,719 | - | 2,895 | -2,361 | -104 | -19 | 384 | -9 | -1,933
Households | -216 | - | 157 | -3,480 | -17 | -2 | 3,327 | - | -231
Stage 3 | -23,042 | - | 1,179 | -20,488 | -40 | - | 16,427 | -1,935 | -27,899
General governments | -91 | - | 1 | 39 | - | - | 5 | - | -46
Other financial corporations | -27 | - | 3 | -20 | - | - | 8 | - | -36
Non-financial corporations | -16,053 | - | 1,047 | -16,620 | -40 | - | 11,104 | -1,915 | -22,477
Households | -6,871 | - | 128 | -3,887 | - | - | 5,310 | -20 | -5,340
POCI | -651 | - | 7 | -87 | - | - | 6 | -1 | -726
General governments | -125 | - | - | 125 | - | - | - | - | -
Non-financial corporations | -467 | - | 2 | -199 | - | - | 4 | - | -660
Households | -59 | - | 5 | -13 | - | - | 2 | -1 | -66
Total | -34,952 | -12,111 | 11,570 | -28,891 | 36 | 39 | 27,507 | -1,945 | -38,747

|  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Net changes due to modifications without derecognition | Decrease in allowance account due to write-offs and POCI loans | Exchange- rate and other changes (+/-) | Closing Balance
Stage 1 | -4,153 | -11,263 | 5,561 | -4,620 | 6,227 | - | 1,208 | 2 | -7,038
General governments | -16 | -2,800 | 3,531 | -752 | - | - | - | - | -37
Credit institutions | -201 | -639 | 702 | 12 | - | - | - | - | -126
Other financial corporations | -49 | -605 | 17 | -161 | - | - | - | - | -798
Non-financial corporations | -3,859 | -7,108 | 1,256 | -2,489 | 6,197 | - | 23 | 2 | -5,978
Households | -28 | -111 | 55 | -1,230 | 30 | - | 1,185 | - | -99
Stage 2 | -20,224 | - | 3,722 | 14,503 | -4,559 | - | 2,331 | 6 | -4,221
General governments | -36 | - | 2 | 23 | - | - | 1 | - | -10
Credit institutions | -2,761 | - | - | 2,757 | - | - | - | - | -4
Other financial corporations | -238 | - | 59 | -1,098 | -2 | - | 2 | 5 | -1,272
Non-financial corporations | -15,582 | - | 3,301 | 13,764 | -4,523 | - | 320 | 1 | -2,719
Households | -1,607 | - | 360 | -943 | -34 | - | 2,008 | - | -216
Stage 3 | -33,617 | - | 1,325 | -5,842 | -153 | - | 13,648 | 1,597 | -23,042
General governments | -276 | - | 4 | 180 | - | - | 1 | - | -91
Other financial corporations | -113 | - | - | 85 | - | - | 1 | - | -27
Non-financial corporations | -27,925 | - | 288 | -2,039 | -143 | - | 12,164 | 1,602 | -16,053
Households | -5,303 | - | 1,033 | -4,068 | -10 | - | 1,482 | -5 | -6,871
POCI | -669 | - | 77 | -103 | - | - | 44 | - | -651
General governments | -90 | - | - | -35 | - | - | - | - | -125
Non-financial corporations | -521 | - | 63 | -45 | - | - | 36 | - | -467
Households | -58 | - | 14 | -23 | - | - | 8 | - | -59
Total | -58,663 | -11,263 | 10,685 | 3,938 | 1,515 | - | 17,231 | 1,605 | -34,952

70
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Net changes due to modifications without derecognition | Decrease in allowance account due to write-offs and POCI loans | Exchange- rate and other changes (+/-) | Closing Balance
Stage 1 | -6,880 | -11,985 | 5,958 | -69 | 178 | - | 7,358 | -9 | -5,449
General governments | -37 | -43 | 11 | 61 | - | - | - | - | -8
Credit institutions | -126 | -998 | 100 | 956 | 8 | - | - | 2 | -58
Other financial corporations | -742 | -3,188 | 192 | 2,411 | - | - | 1 | -2 | -1,328
Non-financial corporations | -5,899 | -7,638 | 5,521 | 3,780 | 138 | - | 157 | -9 | -3,950
Households | -76 | -118 | 134 | -7,277 | 32 | - | 7,200 | - | -105
Stage 2 | -4,143 | - | 4,190 | -8,185 | -101 | - | 3,716 | - | -4,523
General governments | -10 | - | 3 | 6 | -13 | - | 1 | - | -13
Credit institutions | -4 | - | - | -181 | - | - | - | - | -185
Other financial corporations | -1,272 | - | 1,206 | -2,176 | - | - | 4 | 9 | -2,229
Non-financial corporations | -2,646 | - | 2,831 | -2,356 | -74 | - | 384 | -9 | -1,870
Households | -211 | - | 150 | -3,478 | -14 | - | 3,327 | - | -226
Stage 3 | -13,883 | - | 107 | -14,658 | - | - | 10,249 | -1,935 | -20,120
General governments | -91 | - | 1 | 39 | - | - | 5 | - | -46
Other financial corporations | -11 | - | 1 | -1 | - | - | 8 | - | -3
Non-financial corporations | -6,984 | - | 4 | -10,981 | - | - | 5,012 | -1,915 | -14,864
Households | -6,797 | - | 101 | -3,715 | - | - | 5,224 | -20 | -5,207
POCI | -761 | - | 6 | 24 | - | - | 6 | -1 | -726
General governments | -125 | - | - | 125 | - | - | - | - | -
Credit institutions | -110 | - | - | 110 | - | - | - | - | -
Non-financial corporations | -467 | - | 1 | -198 | - | - | 4 | - | -660
Households | -59 | - | 5 | -13 | - | - | 2 | -1 | -66
Total | -25,667 | -11,985 | 10,261 | -22,888 | 77 | - | 21,329 | -1,945 | -30,818

|  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Net changes due to modifications without derecognition | Decrease in allowance account due to write-offs and POCI loans | Exchange- rate and other changes (+/-) | Closing Balance
Stage 1 | -3,985 | -10,896 | 5,560 | -4,930 | 6,161 | - | 1,208 | 2 | -6,880
General governments | -16 | -2,793 | 3,531 | -759 | - | - | - | - | -37
Credit institutions | -201 | -639 | 702 | 12 | - | - | - | - | -126
Other financial corporations | -49 | -486 | 17 | -224 | - | - | - | - | -742
Non-financial corporations | -3,702 | -6,889 | 1,255 | -2,719 | 6,131 | - | 23 | 2 | -5,899
Households | -17 | -89 | 55 | -1,240 | 30 | - | 1,185 | - | -76
Stage 2 | -20,118 | - | 3,722 | 14,323 | -4,407 | - | 2,331 | 6 | -4,143
General governments | -36 | - | 2 | 23 | - | - | 1 | - | -10
Credit institutions | -2,761 | - | - | 2,757 | - | - | - | - | -4
Other financial corporations | -237 | - | 59 | -1,101 | - | - | 2 | 5 | -1,272
Non-financial corporations | -15,479 | - | 3,301 | 13,598 | -4,387 | - | 320 | 1 | -2,646
Households | -1,605 | - | 360 | -954 | -20 | - | 2,008 | - | -211
Stage 3 | -17,285 | - | 1,202 | 309 | - | - | 1,994 | -103 | -13,883
General governments | -276 | - | 4 | 180 | - | - | 1 | - | -91
Other financial corporations | -88 | - | - | 76 | - | - | 1 | - | -11
Non-financial corporations | -11,739 | - | 249 | 4,094 | - | - | 510 | -98 | -6,984
Households | -5,182 | - | 949 | -4,041 | - | - | 1,482 | -5 | -6,797
POCI | -669 | - | 77 | -213 | - | - | 44 | - | -761
General governments | -90 | - | - | -35 | - | - | - | - | -125
Credit institutions | - | - | - | -110 | - | - | - | - | -110
Non-financial corporations | -521 | - | 63 | -45 | - | - | 36 | - | -467
Households | -58 | - | 14 | -23 | - | - | 8 | - | -59
Total | -42,057 | -10,896 | 10,561 | 9,489 | 1,754 | - | 5,577 | -95 | -25,667

71
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The movements in allowances for financial assets at fair value through other comprehensive income –
debt securities
The exposures are presented in Note 21.

Allowances for financial assets at fair value through other comprehensive income |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Exchange- rate and other changes (+/-) | Closing Balance
Debt securities |  |  |  |  |  |  |
Stage 1 | -5,434 | -3,310 | 3,333 | -381 | - | -15 | -5,807
General governments | -5,065 | -3,246 | 3,333 | -92 | - | -12 | -5,082
Credit institutions | -369 | -64 | - | -289 | - | -3 | -725
Total | -5,434 | -3,310 | 3,333 | -381 | - | -15 | -5,807

Allowances for financial assets at fair value through other comprehensive income |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Exchange- rate and other changes (+/-) | Closing Balance
Debt securities |  |  |  |  |  |  |
Stage 1 | -7,089 | -4,859 | 3,450 | 2,618 | 198 | 248 | -5,434
General governments | -6,625 | -2,078 | 3,424 | 213 | - | 1 | -5,065
Credit institutions | -464 | -2,781 | 26 | 2,405 | 198 | 247 | -369
Stage 2 | -196 | - | - | 196 | - | - | -
Credit institutions | -196 | - | - | 196 | - | - | -
Total | -7,285 | -4,859 | 3,450 | 2,814 | 198 | 248 | -5,434

Allowances for financial assets at fair value through other comprehensive income |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Exchange- rate and other changes (+/-) | Closing Balance
Debt securities |  |  |  |  |  |  |
Stage 1 | -5,434 | -3,310 | 3,333 | -383 | - | -15 | -5,809
General governments | -5,065 | -3,246 | 3,333 | -92 | - | -12 | -5,082
Credit institutions | -369 | -64 | - | -291 | - | -3 | -727
Total | -5,434 | -3,310 | 3,333 | -383 | - | -15 | -5,809

Allowances for financial assets at fair value through other comprehensive income |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Exchange- rate and other changes (+/-) | Closing Balance
Debt securities |  |  |  |  |  |  |
Stage 1 | -4,557 | -4,859 | 918 | 2,420 | 396 | 248 | -5,434
General governments | -4,093 | -2,078 | 892 | 15 | 198 | 1 | -5,065
Credit institutions | -464 | -2,781 | 26 | 2,405 | 198 | 247 | -369
Stage 2 | -196 | - | - | 196 | - | - | -
Credit institutions | -196 | - | - | 196 | - | - | -
Total | -4,753 | -4,859 | 918 | 2,616 | 396 | 248 | -5,434

72
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The movements in allowances for finance lease are presented below:
The exposures are presented in Note 35.

|  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Decrease in allowance account due to write-offs and POCI loans | Exchange-rate and other changes (+/-) | Closing Balance
Stage 1 | -20,481 | -18,195 | 3,987 | 5,516 | 4,331 | - | -25 | -24,867
General governments | -34 | -14 | - | 30 | - | - | - | -18
Credit institutions | - | - | - | - | - | - | - | -
Other financial corporations | -510 | -359 | 33 | 135 | 123 | - | -25 | -603
Non-financial corporations | -19,603 | -17,436 | 3,926 | 5,252 | 4,057 | - | - | -23,804
Households | -334 | -386 | 28 | 99 | 151 | - | - | -442
Stage 2 | -19,049 | - | 1,578 | 9,175 | -11,132 | - | - | -19,428
General governments | -47 | - | - | 18 | - | - | - | -29
Credit institutions | - | - | - | - | - | - | - | -
Other financial corporations | -43 | - | 8 | 28 | -326 | - | - | -333
Non-financial corporations | -18,442 | - | 1,523 | 8,971 | -10,339 | - | - | -18,287
Households | -517 | - | 47 | 158 | -467 | - | - | -779
Stage 3 | -43,954 | - | 3,584 | 49 | -8,784 | 12,477 | - | -36,628
Other financial corporations | -159 | - | - | 74 | - | - | - | -85
Non-financial corporations | -43,142 | - | 3,570 | 575 | -8,784 | 12,126 | - | -35,655
Households | -653 | - | 14 | -600 | - | 351 | - | -888
POCI | -320 | - | - | 52 | - | - | - | -268
Non-financial corporations | -320 | - | - | 52 | - | - | - | -268
Total | -83,804 | -18,195 | 9,149 | 14,792 | -15,585 | 12,477 | -25 | -81,191

|  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Decrease in allowance account due to write-offs and POCI loans | Exchange-rate and other changes (+/-) | Closing Balance
Stage 1 | -15,723 | -15,023 | 129 | -2,262 | 12,398 | - | - | -20,481
General governments | -28 | -17 | - | 11 | - | - | - | -34
Other financial corporations | -121 | -333 | 2 | -306 | 248 | - | - | -510
Non-financial corporations | -15,199 | -14,474 | 126 | -2,157 | 12,101 | - | - | -19,603
Households | -375 | -199 | 1 | 190 | 49 | - | - | -334
Stage 2 | -26,306 | - | 410 | 22,018 | -15,171 | - | - | -19,049
General governments | - | - | - | -47 | - | - | - | -47
Other financial corporations | -346 | - | 13 | 500 | -210 | - | - | -43
Non-financial corporations | -25,420 | - | 365 | 21,385 | -14,772 | - | - | -18,442
Households | -540 | - | 32 | 180 | -189 | - | - | -517
Stage 3 | -38,302 | - | 745 | -25,556 | -3,802 | 24,872 | -1,911 | -43,954
Other financial corporations | -202 | - | 57 | -214 | -56 | 256 | - | -159
Non-financial corporations | -37,595 | - | 616 | -24,879 | -3,668 | 24,295 | -1,911 | -43,142
Households | -505 | - | 72 | -463 | -78 | 321 | - | -653
POCI | - | - | - | -320 | - | - | - | -320
Non-financial corporations | - | - | - | -320 | - | - | - | -320
Total | -80,331 | -15,023 | 1,284 | -6,120 | -6,575 | 24,872 | -1,911 | -83,804

|  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Decrease in allowance account due to write-offs and POCI loans | Exchange-rate and other changes (+/-) | Closing Balance
Stage 1 | -9 | - | - | 16 | - | - | -25 | -18
Other financial corporations | -6 | - | - | 17 | - | - | -25 | -14
Non-financial corporations | -3 | - | - | -1 | - | - | - | -4
Households | - | - | - | - | - | - | - | -
Stage 2 | -5 | - | - | -5 | - | - | - | -10
Credit institutions | - | - | - | -3 | - | - | - | -3
Other financial corporations | -2 | - | - | -4 | - | - | - | -6
Non-financial corporations | -3 | - | - | 2 | - | - | - | -1
Stage 3 | -1,172 | - | - | 1,172 | - | - | - | -
Credit institutions | -1,172 | - | - | 1,172 | - | - | - | -
Total | -1,186 | - | - | 1,183 | - | - | -25 | -28

73
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Net changes due to change in credit risk | Transfers between Stage 1 and Stages 2/3 | Decrease in allowance account due to write-offs and POCI loans | Exchange-rate and other changes (+/-) | Closing Balance
Stage 1 | -13 | - | - | 4 | - | - | - | -9
Other financial corporations | -12 | - | - | 6 | - | - | - | -6
Non-financial corporations | -1 | - | - | -2 | - | - | - | -3
Stage 2 | -8 | - | - | 3 | - | - | - | -5
Other financial corporations | -5 | - | - | 3 | - | - | - | -2
Non-financial corporations | -3 | - | - | - | - | - | - | -3
Stage 3 | -1,154 | - | - | -18 | - | - | - | -1,172
Credit institutions | -1,154 | - | - | -18 | - | - | - | -1,172
Total | -1,175 | - | - | -11 | - | - | - | -1,186

In column ‘Increases due to originations and acquisition’ increases of CLA due to the initial recognition of finance lease
receivables during the current reporting period are disclosed. Releases of CLA following the derecognition of the related
finance lease receivables are reported in column ‘Decreases due to derecognition’.
In column ‘Transfers between stages’ CLA net changes due to changes in credit risk that triggered re-assignments of the
related finance lease receivables from Stage 1 as of 1 January 2025 or initial recognition date to Stages 2 or 3 as of 31
December 2025 or vice-versa are reported.
The effects of transfers from Stage 1 to Stages 2 or 3 on the related CLAs are adverse and presented in lines attributable to
Stages 2 or 3. The effects of transfers from Stages 2 or 3 to Stage 1 on the related CLAs are favorable and presented in line
‘Stage 1’.
Any other changes in credit risk which do not trigger a transfer between Stage 1 and Stage 2 or 3 or vice-versa are disclosed
in column ‘Other changes in credit risk (net)’.
Transfers between stages for finance lease
The exposures are presented in Note 35.

|  |  |  |  | 31.12.2025 | Group
| To Stage 2 from Stage 1 | To Stage 3 from Stage 2 | To Stage 3 from Stage 1
in RON thousands | To Stage 2 from Stage 1 | To Stage 1 from Stage 2 | To Stage 3 from Stage 2 | To Stage 2 from Stage 3 | To Stage 3 from Stage 1 | To Stage 1 from Stage 3
Other financial corporations | 5,684 | 526 | - | 5 | - | -
Non-financial corporations | 295,946 | 83,690 | 13,402 | 7,722 | 21,542 | 871
Households | 10,675 | 1,412 | 255 | 201 | 1,152 | -
Total | 312,305 | 85,628 | 13,657 | 7,928 | 22,694 | 871

|  |  |  |  | 31.12.2024 | Group
| To Stage 2 from Stage 1 | To Stage 3 from Stage 2 | To Stage 3 from Stage 1
in RON thousands | To Stage 2 from Stage 1 | To Stage 1 from Stage 2 | To Stage 3 from Stage 2 | To Stage 2 from Stage 3 | To Stage 3 from Stage 1 | To Stage 1 from Stage 3
Other financial corporations | 4,412 | 10,283 | 232 | - | 143 | -
Non-financial corporations | 418,495 | 338,677 | 63,351 | 7,156 | 20,624 | 409
Households | 4,934 | 2,482 | 781 | 215 | 797 | -
Total | 427,841 | 351,442 | 64,364 | 7,371 | 21,564 | 409

74
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Movement in allowances for loan commitments and financial guarantees
The exposures are presented in Note 28.

|  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Transfers between Stage 1 and Stages 2/3 | Other changes in credit risk (net) | Exchange-rate and other changes (+/-) | Closing Balance
Stage 1 | 125,711 | 126,071 | -43,541 | -15,511 | -77,175 | -4,034 | 111,521
Stage 2 | 118,619 | - | -60,017 | 57,423 | 11,532 | -51,826 | 75,731
Defaulted | 71,841 | - | -48,606 | 12,184 | 4,399 | -9,182 | 30,636
Total | 316,171 | 126,071 | -152,164 | 54,096 | -61,244 | -65,042 | 217,888

|  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Transfers between Stage 1 and Stages 2/3 | Other changes in credit risk (net) | Exchange-rate and other changes (+/-) | Closing Balance
Stage 1 | 92,018 | 115,572 | -30,951 | -27,638 | -17,554 | -5,736 | 125,711
Stage 2 | 239,349 | - | -110,373 | 82,750 | -49,775 | -43,332 | 118,619
Defaulted | 79,664 | 19 | -17,759 | 4,963 | 2,267 | 2,687 | 71,841
Total | 411,031 | 115,591 | -159,083 | 60,075 | -65,062 | -46,381 | 316,171

|  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Transfers between Stage 1 and Stages 2/3 | Other changes in credit risk (net) | Exchange-rate and other changes (+/-) | Closing Balance
Stage 1 | 124,616 | 122,557 | -40,401 | -15,118 | -76,864 | -4,034 | 110,756
Stage 2 | 118,873 | - | -58,967 | 56,501 | 10,839 | -51,826 | 75,420
Defaulted | 71,841 | - | -48,606 | 12,184 | 4,272 | -9,182 | 30,509
Total | 315,330 | 122,557 | -147,974 | 53,567 | -61,753 | -65,042 | 216,685

|  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Opening balance | Increases due to origination and acquisition | Decreases due to derecognition | Transfers between Stage 1 and Stages 2/3 | Other changes in credit risk (net) | Exchange-rate and other changes (+/-) | Closing Balance
Stage 1 | 92,351 | 110,768 | -27,736 | -27,638 | -17,386 | -5,743 | 124,616
Stage 2 | 239,188 | - | -109,282 | 82,750 | -50,452 | -43,331 | 118,873
Defaulted | 79,664 | 19 | -17,759 | 4,963 | 2,268 | 2,686 | 71,841
Total | 411,203 | 110,787 | -154,777 | 60,075 | -65,570 | -46,388 | 315,330

In column ‘increases due to origination and acquisition’ increases of CLA due to the initial recognition of loan
commitments and financial guarantees during the current reporting period are disclosed. Releases of CLA following the
derecognition of the related loan commitments and financial guarantees are reported in column ‘Decreases due to
derecognition’.
In the column ‘Transfers between stage 1 and Stages 2/3’ CLA net changes due to changes in credit risk that triggered re-
assignments of the related loan commitments and financial guarantees from Stage 1 (on 1 January 2025 or initial
recognition date) to Stages 2 or defaulted on 31 December 2025 or vice-versa are reported. The effects of transfers from
Stage 1 to Stages 2 or Defaulted on the related CLAs are adverse and presented in lines attributable to Stages 2 or Defaulted.
The effects of transfers from Stages 2 or Defaulted to Stage 1 on the related CLAs are favorable and presented in line ‘Stage
1’. The P&L neutral effect from cross-stage transferring of the related CLA amounts recognized prior to stage re-
assignments are presented above in column ‘Other changes in credit risk (net)’. This column also captures the passage-of-
time adverse effect (‘unwinding’) over the lifetime expected cash shortfalls of defaulted loan commitments and financial
guarantees.
75
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Measurement of expected credit loss
The Expected Credit Loss (ECL) model
The general principles and standards for expected credit loss measurement are governed by internal policies,
methodologies and procedures. According to IFRS 9, credit loss allowances are calculated for all components of the credit
risk exposure which are measured at amortized cost (AC) or at fair value through other comprehensive income and include
other demand deposits, debt securities, loans and advances to customers as well as finance lease and trade receivables.
Provisions for loan commitments and financial guarantees are calculated if they meet the applicable IFRS 9 respective
definitions.
According to the IFRS 9, there are three main stages outlined for expected credit loss (ECL) determination:
•A financial instrument that is not credit-impaired on initial recognition or for which credit risk has not
increased significantly since initial recognition is classified in Stage 1. Financial instruments in Stage 1 have their
ECL measured at an amount equal to the portion of lifetime expected credit losses that result from default events
possible within the next 12 months;
•If a significant increase in credit risk (SICR) since initial recognition is identified but the exposure is not
yet deemed to be credit-impaired, the financial instrument is moved to Stage 2. Instruments in Stage 2 have their
ECL measured based on lifetime (‘LT’) expected credit losses arising from default events that are possible over the
expected life of the instrument. In the case of drawings by non-defaulted customers on previously committed credit
lines, depending on the development of credit risk between the commitment date and the drawing date, the whole
exposure (on-balance and off-balance) is categorized as either Stage 1 or Stage 2;
•If the financial instrument is considered credit-impaired, it is moved to Stage 3. Instruments in Stage 3
have their ECL measured based on lifetime expected credit losses;
•Purchased or originated credit-impaired (POCI) financial instruments are those financial instruments that
are credit-impaired on initial recognition. Their ECL is always measured on LT basis.
The key judgments and assumptions adopted by the Group in addressing the requirements of the standard are presented
below:
Significant increase in credit risk determination
In the area of expected credit loss (ECL) modelling and calculation of ensuring credit loss allowances (CLA), the Group has
concluded that one of the key drivers of the impact from applying the ECL model required by IFRS 9 is the assessment of
significant increase in credit risk (SICR) for exposures that are not identified as credit-impaired as at the reporting date. In
this respect, across portfolios and product types, quantitative and qualitative criteria are defined for assessing SICR,
including the 30 days-past-due (DPD) criteria as a backstop.
Quantitative criteria
Quantitative SICR indicators include adverse changes in lifetime probability of default with significance being assessed by
comparison to the thresholds. The Bank has established thresholds for significant increases in credit risk based on both a
percentage (relative) and absolute change in PD compared to initial recognition. SICR occurs for a particular financial
instrument, when both the relative and the absolute thresholds are breached.
The relative measure is calculated as a ratio between current annualized LT PD and annualized LT PD value on initial
recognition, considering remaining maturity of the instrument. The breach means that such ratio has reached or is higher
than the established threshold. These relative thresholds for SICR assessment are established at PD segment level or client
rating level.
Relative thresholds for SICR assessment

Romania | Threshold
Min | Max
31.12.2025 | 1.06 | 3.37
31.12.2024 | 1.06 | 3.37

76
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

There are certain portfolios where SICR quantitative criteria are assessed based on the ratings rather than PDs. The main
rule in those cases is that downgrading of the ratings would lead to a positive conclusion on SICR. These rules are applied
primarily to leasing and factoring business receivables.
The relative thresholds in place since the IFRS9 implementation have remained consistent as one of the most significant
estimates in ECL measurement.
Absolute threshold is treated jointly with relative threshold for staging purposes in order to mitigate the potential impact of
relative threshold might have on better rating grades (with potentially higher relative PD increase).
Qualitative criteria
Some of the main qualitative SICR criteria used include:
•forbearance-type flags (identification of regulatory forbearance);
•work-out transfer flag (when account starts being monitored by work-out department);
•information from early-warning-system (if it is not sufficiently considered in rating) and;
•fraud indicators.
The assignment of some of the qualitative indicators inherently relies on experienced credit risk judgment being exercised
adequately and timely. The related group-wide and entity-level credit risk controlling policies and procedures ensure the
necessary governance framework. These indicators are used internally for identification of insolvency or increased
probability that a borrower will enter bankruptcy and there is increased risk of default in the foreseeable future.
Besides the qualitative indicators defined on client level, the assessment of significant increase in credit risk is performed
on portfolio level if the increase in credit risk on individual instrument or client level is only available with a certain time
lag or is observable exclusively on portfolio level.
Backstop
A backstop is applied and the financial instruments are considered to have experienced a SICR if the borrower is more than
30 days past due on contractual payments. As observed during validation, this does not represent a major trigger for Stage 2
classification.
Low credit risk exemption
The ‘low credit risk exemption’ allowed by IFRS 9 for ‘investment grade’ assets or other assets deemed ‘low risk’ (and
resulting in 12 months expected credit losses being calculated irrespective of SICR quantitative measures) has been
implemented with limitations in Group. Thus, the potential activation of this exemption is limited to particular types of
debt instruments (sovereign bonds) and counterparty categories, and only if supported by sufficient ‘low risk’ evidence. On
this basis, the ‘low risk exemption’ is expected to be occasionally applied only to banks and sovereigns. As of 31 December
2025, the Group registered low credit risk exposures for sovereign clients with PD below 0.1% in amount of RON 39,070,978
thousands (2024: RON 35,923,734 thousands).
Purchased or Originated Credit Impaired (‘POCI’) exposures
POCI includes financial instruments which were credit-impaired at initial recognition, irrespective of whether they are still
credit-impaired at the reporting date. Expected credit losses against POCI exposures are always calculated on a lifetime
basis and are reflected in the credit-adjusted effective interest rate at initial recognition. As a result, no loss allowance is
recognised at inception. Subsequently, only adverse changes in lifetime expected credit losses after the initial recognition
are recognised as loss allowance, whilst favorable changes are recognised as impairment gains increasing the gross carrying
amount of the POCI financial assets.
Credit-impaired assets
Stage 3 includes financial instruments which are credit-impaired at the reporting date but were not credit-impaired at
initial recognition. In principle, a financial instrument becomes credit-impaired when the customer defaults. The default
definition applied in the Group has been developed in accordance with EBA/GL/2016/07 ‘Guidelines on the application of
the definition of default under Article 178 of Regulation (EU) No 575/2013. The Group generally applies a customer view in
applying the default definition, which leads to an impairment of all claims even if the customer defaults only on one of
several transactions (‘pulling effect’). On the other side, an upgrade to a non-defaulted rating grade implies that the total
exposure ceases to be impaired.
77
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Measurement of expected credit loss
The measurement of ECLs is a probability-weighted average estimate of credit losses that reflect the time value of money. A
credit loss is the difference between the cash flows that are due to the Group in accordance with the contractual terms of
the instrument and the cash flows that the Group expects to receive (i.e. cash shortfalls) discounted at the original effective
interest rate (‘EIR’) of the same instrument, or the credit-adjusted EIR in case of purchased or originated credit impaired
assets.
For the purposes of measuring ECL, the Group estimates expected cash shortfalls, which reflect the cash flows expected
from all possible sources including collateral and other credit enhancements that are part of the contractual terms. In the
case of a collateralized financial instrument, the estimated expected cash flows related to the collateral reflects the amount
and timing of cash flows that are expected from foreclosure on the collateral less the discounted costs of obtaining and
selling the collateral. ECL is calculated over the residual period over which the Bank is exposed to credit risk. The residual
period is defined based on the substantive terms of the instrument, including the Group’s ability to demand repayment or
cancellation and the customer’s ability to require extension. However, for revolving credit facilities (i.e. those that include
both a loan and an undrawn commitment component) the period of exposure is determined in accordance with the
Group’s expected credit risk management actions to mitigate credit risk, including terminating or limiting credit exposure.
In doing so, the Group considers its normal credit risk mitigation process, its past practice, future intentions and expected
credit risk mitigation actions.
For exposures to non-defaulted customers (i.e. in Stage 1 and Stage 2) the Bank determines ECL on a collective basis
irrespective of the significance of the customer. The calculation of ECL for non-defaulted customers requires grouping the
related exposures into homogenous groups on the basis of shared credit risk characteristics. The grouping criteria may
differ on the customer segment (retail, corporate) and include product type, collateral type, repayment type, loan to value
band or credit rating band/rating method. The calculation of credit loss allowances is done on a monthly basis on a single
exposure level and in the contractual currency of the exposure.
ECL is determined as the product of exposure at default (‘EAD’) that also includes a credit conversion factor in case of off-
balance sheet exposures, probability of default (‘PD’) and loss given default (‘LGD’), discounted with the original EIR, as
follows:
•PD represents the likelihood of a borrower defaulting on its financial obligation (as per definition of
default below), either over the next 12 month (‘1Y PD’) or over the remaining lifetime (‘LT PD’);
•EAD is based on the amounts the Group expects to be owed at the time of default, over next 12 months
(‘1Y EAD’) or over remaining lifetime (‘LT EAD’). The estimation includes current balance, expected repayments
and expected drawings up to the current contractual limit by the time of default, should it occur;
•LGD represents the Group’s expectation of the extent of loss on defaulted exposures. LGD varies by type of
counterparty, type and seniority of claim and availability of collateral or other credit support. LGD is expressed as a
percentage loss per unit exposure at the time of default (EAD).
Lifetime parameters
The LT PD is developed through observation of historical defaults from initial recognition through the lifetime of the loans.
It is assumed to be the same across all assets in the same portfolio and rating band. The 1Y and LT EADs are determined
based on the expected payment profiles, which vary by different product types. The LT EAD calculation utilizes repayment
schedule or repayment type (annuity, linear, bullet). In the case of undrawn commitments, a credit conversion factor is
estimated for reflecting the expected credit exposure in the EAD. The LGD is estimated as a life-time curve for any point in
time, based on the historical loss observations.
The risk parameters used in the ECL calculation take into account available information at the reporting date about past
events, current conditions and forecasts on future economic trends. Generally, the risk parameters applied in the
calculation of IFRS 9 ECL differ from the risk parameters compliant with capital requirement regulations, calculated on a
through-the-cycle basis.
78
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Credit risk exposure by region and IFRS 9 treatment

|  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Stage 1 | Stage 2 | Stage 3 | POCI | Credit risk exposure (AC and FVOCI) | Not subject to IFRS 9 impairment | Total
Core markets | 127,249,946 | 9,697,571 | 1,941,911 | 258,034 | 139,147,462 | 8,291,718 | 147,439,180
Austria | 1,233,384 | 97,600 | 182 | - | 1,331,166 | 176,632 | 1,507,798
Romania | 125,965,552 | 9,599,968 | 1,934,702 | 258,034 | 137,758,256 | 8,076,884 | 145,835,140
Slovakia | 14,432 | - | 7,027 | - | 21,459 | - | 21,459
Czech Republic | 18,686 | 2 | - | - | 18,688 | - | 18,688
Hungary | 17,892 | 1 | - | - | 17,893 | 38,202 | 56,095
Other EU | 6,412,082 | 27,523 | 5,483 | 404 | 6,445,492 | 169,796 | 6,615,288
Other industrialised countries | 538,742 | 7,092 | 741 | - | 546,575 | 16,643 | 563,218
Emerging markets | 399,435 | 26,444 | 141 | - | 426,020 | 3,171 | 429,191
Southeastern Europe/CIS | 264,825 | 26,122 | 54 | - | 291,001 | 2,548 | 293,549
Asia | 19,287 | 79 | 65 | - | 19,431 | - | 19,431
Latin America | 43 | - | 2 | - | 45 | - | 45
Middle East/Africa | 115,280 | 243 | 20 | - | 115,543 | 623 | 116,166
Total | 134,600,205 | 9,758,630 | 1,948,276 | 258,438 | 146,565,549 | 8,481,328 | 155,046,877

|  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Stage 1 | Stage 2 | Stage 3 | POCI | Credit risk exposure (AC and FVOCI) | Not subject to IFRS 9 impairment | Total
Core markets | 115,727,908 | 12,174,359 | 1,884,157 | 163,450 | 129,949,874 | 5,919,079 | 135,868,953
Austria | 3,321,094 | 14,533 | 184 | - | 3,335,811 | 179,965 | 3,515,776
Romania | 112,148,435 | 12,151,552 | 1,883,972 | 163,450 | 126,347,409 | 5,739,114 | 132,086,523
Slovakia | 14,055 | 8,272 | - | - | 22,327 | - | 22,327
Czech Republic | 51,228 | 1 | - | - | 51,229 | - | 51,229
Hungary | 193,096 | 1 | 1 | - | 193,098 | - | 193,098
Other EU | 4,562,646 | 58,682 | 2,085 | 240 | 4,623,653 | 64,140 | 4,687,793
Other industrialised countries | 304,384 | 5,639 | 1,010 | - | 311,033 | 20,176 | 331,209
Emerging markets | 136,401 | 28,934 | 202 | - | 165,537 | 5,830 | 171,367
Southeastern Europe/CIS | 1,974 | 24,370 | 83 | - | 26,427 | 2,486 | 28,913
Asia | 11,625 | 168 | 60 | - | 11,853 | 1,865 | 13,718
Latin America | - | - | 3 | - | 3 | - | 3
Middle East/Africa | 122,802 | 4,396 | 56 | - | 127,254 | 1,479 | 128,733
Total | 120,731,339 | 12,267,614 | 1,887,454 | 163,690 | 135,050,097 | 6,009,225 | 141,059,322

79
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Stage 1 | Stage 2 | Stage 3 | POCI | Credit risk exposure (AC and FVOCI) | Not subject to IFRS 9 impairment | Total
Core markets | 128,983,736 | 8,603,009 | 1,772,021 | 257,499 | 139,616,265 | 8,296,717 | 147,912,982
Austria | 1,233,350 | 97,600 | 182 | - | 1,331,132 | 176,632 | 1,507,764
Romania | 127,699,375 | 8,505,406 | 1,764,812 | 257,499 | 138,227,092 | 8,081,883 | 146,308,975
Slovakia | 14,432 | - | 7,027 | - | 21,459 | - | 21,459
Czech Republic | 18,687 | 2 | - | - | 18,689 | - | 18,689
Hungary | 17,892 | 1 | - | - | 17,893 | 38,202 | 56,095
Other EU | 6,408,371 | 26,984 | 5,483 | 404 | 6,441,242 | 169,796 | 6,611,038
Other industrialised countries | 538,741 | 7,092 | 741 | - | 546,574 | 16,642 | 563,216
Emerging markets | 399,435 | 26,443 | 140 | - | 426,018 | 3,173 | 429,191
Southeastern Europe/CIS | 264,825 | 26,121 | 54 | - | 291,000 | 2,549 | 293,549
Asia | 19,287 | 79 | 65 | - | 19,431 | - | 19,431
Latin America | 44 | - | 1 | - | 45 | - | 45
Middle East/Africa | 115,279 | 243 | 20 | - | 115,542 | 624 | 116,166
Total | 136,330,283 | 8,663,528 | 1,778,385 | 257,903 | 147,030,099 | 8,486,328 | 155,516,427

|  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Stage 1 | Stage 2 | Stage 3 | POCI | Credit risk exposure (AC and FVOCI) | Not subject to IFRS 9 impairment | Total
Core markets | 116,603,106 | 11,311,265 | 1,708,345 | 162,813 | 129,785,529 | 5,931,054 | 135,716,583
Austria | 3,321,001 | 14,533 | 184 | - | 3,335,718 | 179,965 | 3,515,683
Romania | 113,023,959 | 11,288,458 | 1,708,157 | 162,813 | 126,183,387 | 5,751,089 | 131,934,476
Slovakia | 13,715 | 8,271 | - | - | 21,986 | - | 21,986
Czech Republic | 51,228 | 2 | - | - | 51,230 | - | 51,230
Hungary | 193,097 | 1 | 1 | - | 193,099 | - | 193,099
Other EU | 4,562,539 | 55,500 | 2,085 | 240 | 4,620,364 | 64,140 | 4,684,504
Other industrialised countries | 304,384 | 5,639 | 1,008 | - | 311,031 | 20,176 | 331,207
Emerging markets | 136,398 | 28,934 | 201 | - | 165,533 | 5,831 | 171,364
Southeastern Europe/CIS | 1,973 | 24,370 | 83 | - | 26,426 | 2,487 | 28,913
Asia | 11,622 | 168 | 60 | - | 11,850 | 1,865 | 13,715
Latin America | - | - | 3 | - | 3 | - | 3
Middle East/Africa | 122,803 | 4,396 | 55 | - | 127,254 | 1,479 | 128,733
Total | 121,606,427 | 11,401,338 | 1,711,639 | 163,053 | 134,882,457 | 6,021,201 | 140,903,658

Stage 1 and Stage 2 comprise not impaired credit exposure, while Stage 3 includes impaired credit exposure. POCI
(purchased or originated credit impaired) consists of credit exposures already impaired when purchased or originated.
The defaulted part of POCI amounted to RON 143,945 thousands (2024: RON 48,598 thousands), the non-defaulted part to
RON 114,493 thousands (2024: RON 115,092 thousands) in case of BCR Group. The defaulted part of POCI in case of BCR
amounted to RON 143,410 thousands (2024: RON 47,961 thousands), while the non-defaulted part is similar with the
Group.
80
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Credit risk exposure and IFRS 9 treatment by business segment

|  |  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Credit risk exposure | Credit loss allowances | Coverage ratio
Stage 1 | Stage 2 | Stage 3 | POCI | Not subject to IFRS 9 impairment | Stage 1 | Stage 2 | Stage 3 | POCI | Stage 2 | Stage 3 | POCI
Retail | 36,402,792 | 4,306,553 | 1,148,935 | 135,877 | 541 | -251,777 | -523,177 | -900,542 | -15,062 | 12.15% | 78.38% | 11.09%
Corporates | 49,904,590 | 5,012,199 | 798,829 | 122,561 | 4,868,738 | -311,397 | -323,938 | -547,952 | -1,090 | 6.46% | 68.59% | 0.89%
Group Markets | 7,123,127 | 342,986 | - | - | 3,590,754 | -4,824 | -8,769 | - | - | 2.56% | - | -
Asset/Liability Management and Local Corporate Center | 41,169,696 | 96,892 | 512 | - | 21,295 | -16,262 | -549 | -512 | - | 0.57% | 100.00% | -
Total | 134,600,205 | 9,758,630 | 1,948,276 | 258,438 | 8,481,328 | -584,260 | -856,433 | -1,449,006 | -16,152 | 8.78% | 74.37% | 6.25%

|  |  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Credit risk exposure | Credit loss allowances | Coverage ratio
Stage 1 | Stage 2 | Stage 3 | POCI | Not subject to IFRS 9 impairment | Stage 1 | Stage 2 | Stage 3 | POCI | Stage 2 | Stage 3 | POCI
Retail | 31,214,415 | 5,362,023 | 1,244,664 | 141,946 | 850 | -220,930 | -569,984 | -1,127,317 | -26,899 | 10.63% | 90.57% | 18.95%
Corporates | 43,555,914 | 6,868,288 | 642,693 | 21,634 | 4,038,469 | -356,417 | -637,430 | -435,964 | -2,965 | 9.28% | 67.83% | 13.71%
Group Markets | 7,807,554 | 35,126 | - | - | 1,880,828 | -8,111 | -2,112 | - | - | 6.01% | - | -
Asset/Liability Management and Local Corporate Center | 38,153,456 | 2,177 | 97 | 110 | 89,078 | -14,697 | -70 | -97 | - | 3.22% | 100.00% | -
Total | 120,731,339 | 12,267,614 | 1,887,454 | 163,690 | 6,009,225 | -600,155 | -1,209,596 | -1,563,378 | -29,864 | 9.86% | 82.83% | 18.24%

|  |  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Credit risk exposure | Credit loss allowances | Coverage ratio
Stage 1 | Stage 2 | Stage 3 | POCI | Not subject to IFRS 9 impairment | Stage 1 | Stage 2 | Stage 3 | POCI | Stage 2 | Stage 3 | POCI
Retail | 35,100,711 | 3,887,752 | 1,066,970 | 135,877 | 541 | -231,430 | -505,648 | -859,651 | -15,062 | 13.01% | 80.57% | 11.09%
Corporates | 47,004,004 | 4,330,245 | 710,903 | 122,026 | 4,868,738 | -282,061 | -299,386 | -508,107 | -822 | 6.91% | 71.47% | 0.67%
Group Markets | 7,123,127 | 342,986 | - | - | 3,595,754 | -4,824 | -8,769 | - | - | 2.56% | - | -
Asset/Liability Management and Local Corporate Center | 47,102,441 | 102,545 | 512 | - | 21,295 | -22,154 | -555 | -512 | - | 0.54% | 100.00% | -
Total | 136,330,283 | 8,663,528 | 1,778,385 | 257,903 | 8,486,328 | -540,469 | -814,358 | -1,368,270 | -15,884 | 9.40% | 76.94% | 6.16%

|  |  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Credit risk exposure | Credit loss allowances | Coverage ratio
Stage 1 | Stage 2 | Stage 3 | POCI | Not subject to IFRS 9 impairment | Stage 1 | Stage 2 | Stage 3 | POCI | Stage 2 | Stage 3 | POCI
Retail | 30,150,238 | 4,945,450 | 1,175,059 | 141,946 | 850 | -203,930 | -550,363 | -1,091,684 | -26,899 | 11.13% | 92.90% | 18.95%
Corporates | 40,840,144 | 6,393,188 | 534,114 | 20,997 | 4,038,471 | -326,928 | -619,474 | -381,839 | -2,645 | 9.69% | 71.49% | 12.60%
Group Markets | 7,809,336 | 35,126 | - | - | 1,892,802 | -8,113 | -2,112 | - | - | 6.01% | - | -
Asset/Liability Management and Local Corporate Center | 42,806,709 | 27,574 | 2,466 | 110 | 89,078 | -18,636 | -615 | -1,269 | -110 | 2.23% | 51.46% | 100.00%
Total | 121,606,427 | 11,401,338 | 1,711,639 | 163,053 | 6,021,201 | -557,607 | -1,172,564 | -1,474,792 | -29,654 | 10.28% | 86.16% | 18.19%

81
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Incorporation of Forward-Looking Information (FLI)
Parameters are determined to reflect the risk as a ‘point-in-time’ measure and with consideration of forward-looking
information (FLI). This approach considers a baseline forecast and a number of alternative scenarios for selected
macroeconomic variables. The alternative scenarios are derived, together with their probabilities of occurrence, as a
deviation from baseline forecasts. The baseline forecasts are, with a few exceptions, internally determined by BCR’s
research department. Given multiple scenarios, the ‘neutral’ PDs (and, with a few exceptions, also LGDs) are adjusted
using macro models that link relevant macroeconomic variables with risk drivers.
The same macro-shift models as for external and internal stress test are used. Forward-looking information is incorporated
for first three years of ECL measurement and has at least a yearly frequency of update.
Thus, the unbiased probability weighted ECL considering FLI is derived using the weights representing the probability of
occurrence of each macroeconomic scenario. Typical macroeconomic variables may include real gross domestic product,
unemployment rate, inflation rate, production price index, wages and market interest rates. The main indicators are GDP
development for Corporate and wages for Retail.
In addition, economic effects of the war in Ukraine led to increasing inflation and/or interest rates, as well as uncertainty
about energy carriers' availability and their prices. The Bank adjusted macro-shift models to properly reflect expected
effects of those into credit risk parameters.
The Bank reviewed the scenarios used in forward looking information in 2025 according to the disclosed forecasts for
baseline, downside and upside scenarios and decided to use 24% probability of occurrence assigned for upside forecast and
26% for downside forecast due to more stable macroeconomic forecasts than as compared which the ones observed during
previous year.
Baseline, upside and downside scenarios of GDP growth by geographic region

|  | Probability weights | GDP growth in %
31.12.2025 | Scenario | 2026-2028 |  | 2026 | 2027 | 2028
Romania | Upside | 24% |  | 5.04 | 5.94 | 5.64
Baseline | 50% |  | 2.10 | 3.00 | 2.70
Downside | 26% |  | -1.43 | -0.53 | -0.83

31.12.2024 | Scenario | 2025-2027 |  | 2025 | 2026 | 2027
Romania | Upside | 26% |  | 4.35 | 5.55 | 4.95
Baseline | 50% |  | 1.20 | 2.40 | 1.80
Downside | 24% |  | -3.02 | -1.02 | -0.67

Baseline, upside and downside scenarios of the inflation development

| Upside scenario | Baseline scenario | Downside scenario | Scenario weighted outcome
31.12.2025 | 2026 | 2027 | 2028 | 2026 | 2027 | 2028 | 2026 | 2027 | 2028 | 2026 | 2027 | 2028
GDP growth | 5.04 | 5.94 | 5.64 | 2.10 | 3.00 | 2.70 | -1.43 | -0.53 | -0.83 | 1.89 | 2.79 | 2.49
Interest Rate (ROBOR 3M) | 2.71 | 1.51 | 1.19 | 5.53 | 4.33 | 4.00 | 8.36 | 7.16 | 6.83 | 5.59 | 4.39 | 4.06
Inflation (CPI) | 4.60 | 1.10 | 1.10 | 6.50 | 3.00 | 3.00 | 8.40 | 4.90 | 4.90 | 6.54 | 3.04 | 3.04

| Upside scenario | Baseline scenario | Downside scenario | Scenario weighted outcome
31.12.2024 | 2025 | 2026 | 2027 | 2025 | 2026 | 2027 | 2025 | 2026 | 2027 | 2025 | 2026 | 2027
GDP growth | 4.35 | 5.55 | 4.95 | 1.20 | 2.40 | 1.80 | -3.02 | -1.02 | -0.67 | 1.01 | 2.40 | 2.03
Interest Rate (ROBOR 3M) | 2.34 | 1.54 | 1.44 | 5.20 | 4.40 | 4.30 | 8.15 | 7.65 | 6.90 | 5.17 | 4.44 | 4.18
Inflation (CPI) | 2.14 | 1.24 | 1.14 | 4.10 | 3.20 | 3.10 | 7.97 | 5.42 | 4.17 | 4.52 | 3.22 | 2.85

82
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

ECL for Stage 3 or POCI
ECL on Stage 3 or POCI exposures are calculated individually or collectively. The individual approach is applied in case of
exposures to significant defaulted customers and consists of the individual assessment of the difference between the gross
carrying amount and the net present value of the expected cash flows which are estimated by workout or risk managers.
More than one scenario of expected future cash flows shall be considered in ECL calculation to ensure the unbiased and
probability weighted result. In accordance with internal workout processes, the following scenarios should be accounted
for: approved workout strategy (base scenario), alternative base case (if applicable), contingency scenario (e.g. bankruptcy/
liquidation) and exit scenario (e.g. NPL sale).
The discounting of the cash flows is based on the effective interest rate (POCI: credit-adjusted effective interest rate).
However, for financial guarantees the discount rate shall reflect the current market assessment of the time value of money
and the risks that are specific to the cash flows which in Group’s implementation means using a risk free rate as a proxy. A
defaulted customer is classified as individually significant if the total on- and off-balance exposure exceeds a predefined
materiality limit. The materiality limit on client level is 400,000 EUR (2025: RON equivalent 2,039 thousands) for non-retail
clients and 250,000 EUR (2025: RON equivalent 1,274 thousands) for retail clients. Otherwise, the customer is considered
as insignificant and a rule-based approach is used for the calculation of the related credit loss allowance. Under this
approach, credit loss allowances are calculated as the product of gross carrying amount and LGD, where the LGD depends
on characteristics such as time in default or the stage of the workout process, collateralization level. Specifically for retail
clients ECL calculation is based on Expected Loss Best Estimates (ELBE) model, depending on the client’s payment
behavior, the following categories can be assigned: cooperative, non-cooperative and average. The cooperative reflects the
good payments behavior of the client for which high recovery rates are expected, whereas the non-cooperative reflects low
recovery expectations.
Collective assessment
In addition to the standard SICR assessment, BCR applied a collective SICR assessment, under which exposures are
transferred to Stage 2 based on predefined portfolio characteristics that capture emerging risks not adequately reflected in
the standard models. Exemptions from the collective SICR assessment may be granted following an individual review and
appropriate documentation.
In December 2025, BCR applied collective staging assessment (industry stage overlays), implemented in 2024, in case of
industries selected in line with industry strategy to ensure that it reflects risks and changes in the risk assessment which
our portfolio is exposed to. In addition to the industry selection, a probability‑of‑default threshold of 250 basis points is
used to trigger transfer to Stage 2.
During 2025, several adjustments were made to the industry stage overlays in line with updates to the Erste Group risk
strategy and observed portfolio developments:
September - following a review of the industry strategy, the Construction and Building Materials sub‑industry was removed
from the scope of industry stage overlays. This decision resulted in the decrease of allocated ECL of RON 3,333 thousand.
October - the Real Estate Developers sub‑industry was excluded from the overlays due to stable portfolio performance. The
removal of this overlay led to the decrease of RON 3,018 thousand in allocated ECL.
December - the Metals (Iron/Steel) industry category was added to the industry stage overlays following a change in the
Erste Group risk strategy. This update resulted in a minor ECL increase of RON 5 thousand.
As of 31 December 2025, credit risk exposure of the portfolio subject to collective staging assessment (industry stage
overlays) was RON 619,080 thousand. The related Stage 2 additional expected credit loss was RON 25,137 thousand.
Effect on Expected Credit Loss (ECL)
The analysis tables below present the effects of the portfolio overlays and FLI on both exposure migration to Stage 2 and
the resulting increase of ECL. Additional sensitivities to the baseline, upside and downside scenarios are simulated.
Scenario simulation presents sensitivity analyses taking into consideration only changes due to the different values of PDs,
if baseline, upside or downside FLI scenarios had 100% weight. Sensitivities of these scenarios are calculated in comparison
to current production - weighted scenarios FLI shifted – PDs. Weights and scenarios are disclosed in the ”Incorporation of
forward-looking information” section. Both staging and resulting ECL were simulated with the scenario PDs.
83
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The incorporation of 100% upside scenario instead of the currently applied weighted scenario outcome would lead to a
decrease of Stage 2 exposure by RON 768,000 thousands (2024: RON 1,589,000 thousands), resulting in a decrease in
expected credit loss of RON 176,000 thousands (2024: RON 331,000 thousands).
The baseline scenario would lead to a decrease of Stage 2 exposure by RON 106,000 thousands (2024: RON 397,000
thousands), resulting in a decrease in expected credit loss of RON 17,000 thousands (2024: RON 82,000 thousands).
The downside scenario would lead to additional RON 1,223,000 thousands of exposure migration to Stage 2 in comparison
with scenario weighted FLI (2024: RON 3,035,000 thousands), resulting in a increase in expected credit loss of RON 235,000
thousands (2024: RON 675,000 thousands).
For the ECL change a positive sign (+) equals a release while a negative sign (-) equals an allocation. Values presented
sensitivities are results of internal simulations.
Impact on credit risk exposure

|  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Current status – parameters (FLI shifted) |  |  |
Stage 1 | Stage 2 | Total |  |  | Simulations - change of FLI shifts effect |
PI | Industry / Cyclical | FLI shifts | Upside scenario | Baseline scenario | Downside scenario
Romania | 136,330,283 | 8,663,528 | 144,993,811 | - | 619,000 | 933,000 | -768,000 | -106,000 | 1,223,000
Total | 136,330,283 | 8,663,528 | 144,993,811 | - | 619,000 | 933,000 | -768,000 | -106,000 | 1,223,000

|  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Current status – parameters (FLI shifted) |  |  |
Stage 1 | Stage 2 | Total |  |  | Simulations - change of FLI shifts effect |
PI | Industry / Cyclical | FLI shifts | Upside scenario | Baseline scenario | Downside scenario
Romania | 121,606,427 | 11,401,338 | 133,007,765 | - | 2,336,000 | 1,481,000 | -1,589,000 | -397,000 | 3,035,000
Total | 121,606,427 | 11,401,338 | 133,007,765 | - | 2,336,000 | 1,481,000 | -1,589,000 | -397,000 | 3,035,000

Impact on credit loss allowances

|  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Current status – parameters (FLI shifted) |  |  |
Stage 1 | Stage 2 | Total |  |  | Simulations - change of FLI shifts effect |
PI | Industry / Cyclical | FLI shifts | Upside scenario | Baseline scenario | Downside scenario
Romania | -540,469 | -814,358 | -1,354,827 | - | -25,000 | -218,000 | 176,000 | 17,000 | -235,000
Total | -540,469 | -814,358 | -1,354,827 | - | -25,000 | -218,000 | 176,000 | 17,000 | -235,000

|  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Current status – parameters (FLI shifted) |  |  |
Stage 1 | Stage 2 | Total |  |  | Simulations - change of FLI shifts effect |
PI | Industry / Cyclical | FLI shifts | Upside scenario | Baseline scenario | Downside scenario
Romania | -557,607 | -1,172,564 | -1,730,171 | - | -54,000 | -303,000 | 331,000 | 82,000 | -675,000
Total | -557,607 | -1,172,564 | -1,730,171 | - | -54,000 | -303,000 | 331,000 | 82,000 | -675,000

Credit loss allowances and loss allowances for loan commitments and financial guarantees are computed based on IFRS 9
requirements, while provisions for other commitments are subject to IAS 37.
84
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Restructuring and renegotiation
Business restructuring in the retail segment or Commercial renegotiation in the corporate segment is a potential and
effective customer retention tool involving re-pricing or the offering of an additional loan or both in order to maintain the
bank’s valuable, good customers.
Forbearance
BCR’s definition of ‘forbearance’ follows the EBA’s Technical Standards on forbearance included in Regulation (EU)
2015/227. A restructuring is considered ‘forbearance’ if it entails a concession towards a customer facing or about to face
financial difficulties in meeting their contractual financial commitments. A borrower is in financial difficulties if any of the
following conditions are met:
• the customer has an active default event;
• the customer was more than 30 days past due in the past 3 months;
• the customer would be 30 days past due or more without receiving forbearance;
• the contract modification involves total or partial cancellation by write-off of the debt on any of the customer’s
credit obligations while at customer level open credit exposure still remains (only for retail clients);
• riskier ratings are assigned following a deterioration by minimum 2 points of the previous rating (applicable only
for non-retail clients).
Forborne exposure is assessed at loan contract level and means only the exposure to which forbearance measures have
been extended and excludes any other exposure the customer may have, as long as no forbearance was extended to these.
Concession means that any of the following conditions are met:
• modification/refinancing of the contract would not have been granted, had the customer not been in financial
difficulty;
• there is a difference in favor of the customer between the modified/refinanced terms of the contract and the
previous terms of the contract;
• the modified/refinanced contract includes more favorable terms than other customers with a similar risk profile
would have obtained from the same institution.
Forbearance can be initiated by the Bank or by the customer (on account of loss of employment, illness etc.). Components
of forbearance can be installment reduction, tenor extension, interest reduction or forgiveness, principal reduction or
forgiveness, revolving exposure change to installment and/or others.
Forbearance measures are divided and reported as:
• performing forbearance (incl. performing forbearance under probation that was upgraded from non-performing
forbearance);
• non-performing forbearance (incl. non-performing forbearance and defaulted/impaired forbearance); starting
with May 2019 also the non-performing forbearance has assigned a default event.
Forborne exposures are considered performing when:
• the exposure did not have non-performing status at the time the extension of or application for forbearance was
approved;
• granting the forbearance has not led to classifying the exposure as non-performing or default.
Performing forborne exposures become non-performing when one of the following forbearance classifications is fulfilled
during the monitoring period of a minimum of two years:
• an additional forbearance measure is extended and in the past the customer was in the non-performing
forbearance category;
• the customer becomes more than 30 days past due on forborne exposure and in the past the customer was in the
non-performing forbearance category;
85
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

• the customer meets any of the default event criteria defined in the default definition;
• for corporate customers, when a final restructuring agreement cannot be concluded within 18 months after the
first forbearance measure.
The performing forbearance classification can be discontinued and the account can become a non-forborne account when
all of the following conditions are met:
• a minimum of two years has passed from the date of classifying the exposure as performing forbearance
(probation period);
• under the forborne payment plan, at least 50% of the original (pre-forbearance) installment has been regularly
repaid at least during half of the probation period (in the case of retail customers);
• regular repayments in a significant amount during at least half of the probation period have been made (in the
case of corporate customers);
• none of the exposure of the customer is more than 30 days past due at the end of the probation period.
An exposure is considered as non-performing forborne, if at the moment of forbearance measures implementation client
meets at least one of the conditions mentioned below:
• the account/product is already classified as non-performing exposure;
• the account/product becomes non-performing after the concession implementation.
Nonperforming forbearance can be allocated as a result of a downgrade from a performing/ performing under probation
forbearance status.
If for a performing forborne contract the customer meets any of the default event criteria defined in the Group internal
default definition, the account will be classified as non-performing.
If for or a performing under probation contract at least one of the below triggers will take place, the account will be
classified as non-performing:
• an additional forbearance measure is extended at account level, this being at least the 2nd restructuring measure
at client level, in more than 2 years from receiving the last forbearance measure or
• the account has more than 30 days past due during the monitoring period, or
• the customer meets any of the default event criteria defined in the Group internal default definition.
The non-performing forbearance classification can be discontinued and reclassified as performing under probation when
all of the following conditions are met:
• one year has passed from the date of classifying the exposure as non-performing forbearance;
• the forbearance has not led the exposure to be classified as non-performing;
• retail customers: the customer has demonstrated the ability to comply with the post-forbearance conditions by
either of the following:
- the customer has never been more than 30 days past due during the last 6 months and there is no
delinquent amount;
- the customer has repaid the full past due amount or the written-off amount (if there was any).
• corporate customers: analysis of financial development that leaves no concern about future compliance with post-
forbearance terms and conditions. Furthermore, the customer has never been more than 30 days past due during
the monitoring period and there is no delinquent amount.
In the corporate segment, recognition of forbearance measures typically leads to the involvement of the responsible local
workout unit. The largest part of the forbearance measures are set and monitored within the responsibility of the local
workout units according to the internal regulations and standards for the workout involvement. Forbearance measures are
defined as qualitative trigger events in the SICR concept according to the internal regulations of the Bank.
86
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Credit risk exposure, forbearance exposure and credit loss allowances

|  |  |  | 31.12.2025 | Group
in RON thousands | Loans and advances | Debt securities | Other on- and off-balance- sheet positions | Loan commitments | Total
Gross exposure | 81,199,786 | 36,288,512 | 11,145,857 | 26,412,722 | 155,046,877
thereof gross forborne exposure | 1,318,141 | - | - | 32,190 | 1,350,331
Performing exposure | 79,175,672 | 36,288,512 | 11,139,836 | 26,350,397 | 152,954,417
thereof performing forborne exposure | 444,849 | - | - | 22,521 | 467,370
Credit loss allowances for performing exposure | -1,238,670 | -15,805 | -10,775 | -177,134 | -1,442,384
thereof credit loss allowances for performing forborne exposure | -70,327 | - | - | -2,434 | -72,761
Non-performing exposure | 2,024,114 | - | 6,021 | 62,325 | 2,092,460
thereof non-performing forborne exposure | 873,292 | - | - | 9,669 | 882,961
Credit loss allowances for non-performing exposure | -1,432,951 | - | -745 | -29,773 | -1,463,469
thereof credit loss allowances for non-performing forborne exposure | -526,871 | - | - | -2,972 | -529,843

|  |  |  | 31.12.2024 | Group
in RON thousands | Loans and advances | Debt securities | Other on- and off-balance- sheet positions | Loan commitments | Total
Gross exposure | 75,811,407 | 33,364,099 | 8,427,846 | 23,455,975 | 141,059,327
thereof gross forborne exposure | 1,622,886 | - | - | 279,393 | 1,902,279
Performing exposure | 73,990,813 | 33,364,099 | 8,426,502 | 23,341,866 | 139,123,280
thereof performing forborne exposure | 979,807 | - | - | 276,596 | 1,256,403
Credit loss allowances for performing exposure | -1,553,285 | -14,319 | -14,704 | -229,999 | -1,812,307
thereof credit loss allowances for performing forborne exposure | -180,669 | - | - | -29,198 | -209,867
Non-performing exposure | 1,820,594 | - | 1,344 | 114,109 | 1,936,047
thereof non-performing forborne exposure | 643,079 | - | - | 2,797 | 645,876
Credit loss allowances for non-performing exposure | -1,518,975 | - | -1,210 | -70,501 | -1,590,686
thereof credit loss allowances for non-performing forborne exposure | -512,860 | - | - | -1,612 | -514,472

|  |  |  | 31.12.2025 | Bank
in RON thousands | Loans and advances | Debt securities | Other on- and off-balance- sheet positions | Loan commitments | Total
Gross exposure | 80,726,577 | 36,154,979 | 11,191,915 | 27,442,956 | 155,516,427
thereof gross forborne exposure | 1,262,898 | - | - | 32,190 | 1,295,088
Performing exposure | 78,872,671 | 36,154,979 | 11,185,894 | 27,380,849 | 153,594,393
thereof performing forborne exposure | 423,480 | - | - | 22,521 | 446,001
Credit loss allowances for performing exposure | -1,153,934 | -15,748 | -10,803 | -176,029 | -1,356,514
thereof credit loss allowances for performing forborne exposure | -69,450 | - | - | -2,434 | -71,884
Non-performing exposure | 1,853,906 | - | 6,021 | 62,107 | 1,922,034
thereof non-performing forborne exposure | 839,418 | - | - | 9,669 | 849,087
Credit loss allowances for non-performing exposure | -1,352,075 | - | -745 | -29,646 | -1,382,466
thereof credit loss allowances for non-performing forborne exposure | -511,333 | - | - | -2,972 | -514,305

87
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  | 31.12.2024 | Bank
in RON thousands | Loans and advances | Debt securities | Other on- and off-balance- sheet positions | Loan commitments | Total
Gross exposure | 75,390,724 | 33,237,784 | 8,590,179 | 23,684,971 | 140,903,658
thereof gross forborne exposure | 1,553,682 | - | - | 279,393 | 1,833,075
Performing exposure | 73,746,580 | 33,237,784 | 8,588,834 | 23,570,862 | 139,144,060
thereof performing forborne exposure | 942,591 | - | - | 276,596 | 1,219,187
Credit loss allowances for performing exposure | -1,474,682 | -14,265 | -15,289 | -228,490 | -1,732,726
thereof credit loss allowances for performing forborne exposure | -178,917 | - | - | -29,198 | -208,115
Non-performing exposure | 1,644,144 | - | 1,345 | 114,109 | 1,759,598
thereof non-performing forborne exposure | 611,091 | - | - | 2,797 | 613,888
Credit loss allowances for non-performing exposure | -1,430,179 | - | -1,210 | -70,501 | -1,501,890
thereof credit loss allowances for non-performing forborne exposure | -498,410 | - | - | -1,612 | -500,022

This section provides a comprehensive picture of the credit quality of the banks’ assets per financial statements line - item.
Total forborne exposure decreases with RON (551,948) thousand in case of Group, respectively by RON (537,987)
thousands in case of Bank, noticeable in loans and advances and loan commitments.
Types of forbearance exposure

|  |  |  |  |  | Group
in RON thousands | Gross forborne exposure | Modification in terms and conditions | Refinancing | Gross forborne exposure | Modification in terms and conditions | Refinancing
| 31.12.2025 | 31.12.2024
Loans and advances | 1,318,141 | 1,261,886 | 56,255 | 1,622,886 | 1,581,334 | 41,552
Loan commitments | 32,190 | 31,094 | 1,096 | 279,393 | 253,644 | 25,749
Total | 1,350,331 | 1,292,980 | 57,351 | 1,902,279 | 1,834,978 | 67,301

|  |  |  |  |  | Bank
in RON thousands | Gross forborne exposure | Modification in terms and conditions | Refinancing | Gross forborne exposure | Modification in terms and conditions | Refinancing
| 31.12.2025 | 31.12.2024
Loans and advances | 1,262,898 | 1,206,643 | 56,255 | 1,553,682 | 1,512,130 | 41,552
Loan commitments | 32,190 | 31,094 | 1,096 | 279,393 | 253,644 | 25,749
Total | 1,295,088 | 1,237,737 | 57,351 | 1,833,075 | 1,765,774 | 67,301

Loans and advances figures include finance lease receivables and trade and other receivables.
Non-performing credit risk exposure and credit loss allowances
For the definition of credit risk exposure classified as non-performing, please refer to the description of risk categories in
the subsection ‘Internal rating system’. Credit risk provisions include specific and collective allowances and provisions for
guarantees.
Credit loss allowances (all stages combined) covered 138.89% (2024: 175.77%) in case of Group and 142.52% (2024: 183.83%)
in case of BCR of the reported non-performing on-balance and off-balance credit risk exposure as of 31 December 2025. For
the portion of the non-performing credit risk exposure that is not covered by allowances, Group assumes there are
sufficient levels of collateral and expected other recoveries.
Non-performing exposure reached RON 2,092,221 thousands as of December 2025 (2024: RON 1,936,047 thousands) in
case of BCR Group and RON 1,921,796 thousands (2024: RON 1,759,598 thousands) in case of Bank.
The following tables show the coverage of the non-performing credit risk exposure by credit loss allowances (without
taking into consideration the collateral) as of 31 December 2025 and 31 December 2024.
The non-performing exposure ratio (NPE ratio) is calculated as the non-performing credit risk exposure divided by total
credit risk exposure while the NPE coverage ratio (excl. collateral) is calculated according to Group’s internal definition by
dividing total loss allowances by non-performing credit risk exposure. Collateral or other recoveries are not taken into
account.
88
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Non-performing credit risk exposure by business segment and coverage by credit loss allowances and collateral

|  |  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Non-performing | Credit risk exposure | Credit loss allowances | Collateral for NPE | NPE ratio | NPE coverage (excl. collateral) | NPE collateralization ratio
Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI
Retail | 1,178,475 | 1,178,475 | 41,994,698 | 41,994,157 | -1,690,559 | 406,770 | 406,770 | 2.81% | 2.81% | 143.45% | 34.52% | 34.52%
Corporates | 913,473 | 913,234 | 60,706,917 | 55,838,179 | -1,184,376 | 326,679 | 326,441 | - | - | 129.69% | - | -
Group Markets | - | - | 11,056,867 | 7,466,113 | -13,593 | - | - | - | - | - | - | -
Asset/Liability Management and Local Corporate Center | 512 | 512 | 41,288,395 | 41,267,100 | -17,323 | 146 | 146 | - | - | 3383.40% | 28.52% | 28.52%
Total | 2,092,460 | 2,092,221 | 155,046,877 | 146,565,549 | -2,905,851 | 733,595 | 733,357 | 1.35% | 1.43% | 138.89% | 35.06% | 35.05%

|  |  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Non-performing | Credit risk exposure | Credit loss allowances | Collateral for NPE | NPE ratio | NPE coverage (excl. collateral) | NPE collateralization ratio
Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI
Retail | 1,280,544 | 1,280,544 | 37,963,899 | 37,963,048 | -1,945,130 | 407,745 | 407,745 | 3.37% | 3.37% | 151.90% | 31.84% | 31.84%
Corporates | 655,296 | 655,298 | 55,126,999 | 51,088,526 | -1,432,775 | 231,127 | 231,127 | - | - | 218.64% | - | -
Group Markets | - | - | 9,723,507 | 7,842,680 | -10,224 | - | - | - | - | - | - | -
Asset/Liability Management and Local Corporate Center | 207 | 207 | 38,244,917 | 38,155,840 | -14,864 | - | - | - | - | 7180.68% | - | -
Total | 1,936,047 | 1,936,049 | 141,059,322 | 135,050,094 | -3,402,993 | 638,872 | 638,872 | 1.37% | 1.43% | 175.77% | 33.00% | 33.00%

89
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Non-performing | Credit risk exposure | Credit loss allowances | Collateral for NPE | NPE ratio | NPE coverage (excl. collateral) | NPE collateralization ratio
Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI
Retail | 1,096,510 | 1,096,510 | 40,191,851 | 40,191,311 | -1,611,790 | 364,390 | 364,390 | 2.73% | 2.73% | 146.99% | 33.23% | 33.23%
Corporates | 825,012 | 824,773 | 57,035,916 | 52,167,178 | -1,090,377 | 273,618 | 273,379 | 1.45% | 1.58% | 132.20% | 33.17% | 33.15%
Group Markets | - | - | 11,061,867 | 7,466,113 | -13,593 | - | - | - | - | - | - | -
Asset/Liability Management and Local Corporate Center | 512 | 512 | 47,226,793 | 47,205,498 | -23,221 | 146 | 146 | - | - | 4535.35% | 28.52% | 28.52%
Total | 1,922,034 | 1,921,795 | 155,516,427 | 147,030,100 | -2,738,981 | 638,154 | 637,915 | 1.24% | 1.31% | 142.52% | 33.20% | 33.19%

|  |  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Non-performing | Credit risk exposure | Credit loss allowances | Collateral for NPE | NPE ratio | NPE coverage (excl. collateral) | NPE collateralization ratio
Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI | Total | AC and FVOCI | AC and FVOCI | Total | AC and FVOCI
Retail | 1,210,935 | 1,210,935 | 36,413,540 | 36,412,690 | -1,872,875 | 367,619 | 367,619 | 3.33% | 3.33% | 154.66% | 30.36% | 30.36%
Corporates | 546,086 | 546,086 | 51,826,915 | 47,788,444 | -1,330,887 | 158,158 | 158,158 | 1.05% | 1.14% | 243.71% | 28.96% | 28.96%
Group Markets | - | - | 9,737,266 | 7,844,461 | -10,225 | - | - | - | - | - | - | -
Asset/Liability Management and Local Corporate Center | 2,577 | 2,577 | 42,925,937 | 42,836,859 | -20,630 | - | - | 0.01% | 0.01% | 800.54% | - | -
Total | 1,759,598 | 1,759,598 | 140,903,658 | 134,882,454 | -3,234,617 | 525,777 | 525,777 | 1.25% | 1.30% | 183.83% | 29.88% | 29.88%

90
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The tables on the following pages present the structure of the customer loan book, excluding loans to central banks and
credit institutions broken down by different categories. Loans and advances to customers comprise:
• loans and advances to customers at AC;
• finance lease receivables;
• trade and other receivables.
Loans and advances to customers by currency

|  | Group |  | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
EUR | 20,609,156 | 19,047,562 | 20,091,743 | 18,602,896
RON | 54,740,717 | 50,338,505 | 54,790,155 | 50,406,413
USD | 277,592 | 420,521 | 277,592 | 420,521
Other | 16 | 27 | 16 | 27
Total | 75,627,481 | 69,806,615 | 75,159,506 | 69,429,857

Loans to customers includes loans and advances, trade receivables and finance leases.
Loans and advances to customers by business segment and risk category

|  |  |  | 31.12.2025 | Group
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Retail | 30,898,008 | 4,798,209 | 1,924,605 | 1,166,516 | 38,787,338
Corporates | 21,113,994 | 8,929,068 | 1,263,961 | 857,085 | 32,164,108
Group Markets | 4,202,389 | 252,473 | 25,067 | - | 4,479,929
Asset/Liability Management and Local Corporate Center | 191,428 | 3,416 | 750 | 512 | 196,106
Total | 56,405,819 | 13,983,166 | 3,214,383 | 2,024,113 | 75,627,481

|  |  |  | 31.12.2024 | Group
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Retail | 27,201,662 | 4,605,558 | 1,925,330 | 1,271,131 | 35,003,681
Corporates | 18,907,383 | 9,266,707 | 1,568,495 | 549,257 | 30,291,842
Group Markets | 4,015,018 | 31,117 | 25,211 | - | 4,071,346
Asset/Liability Management and Local Corporate Center | 181,425 | 2,107 | 256,117 | 97 | 439,746
Total | 50,305,488 | 13,905,489 | 3,775,153 | 1,820,485 | 69,806,615

|  |  |  | 31.12.2025 | Bank
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Retail | 30,798,906 | 3,934,069 | 1,327,904 | 1,084,771 | 37,145,650
Corporates | 20,049,419 | 6,802,577 | 949,464 | 768,624 | 28,570,084
Group Markets | 4,202,389 | 252,473 | 25,067 | - | 4,479,929
Asset/Liability Management and Local Corporate Center | 4,959,165 | 3,416 | 750 | 512 | 4,963,843
Total | 60,009,879 | 10,992,535 | 2,303,185 | 1,853,907 | 75,159,506

|  |  |  | 31.12.2024 | Bank
in RON thousands | Low risk | Management attention | Substandard | Non-performing | Total
Retail | 27,116,973 | 3,816,997 | 1,480,609 | 1,201,522 | 33,616,101
Corporates | 18,034,474 | 7,070,700 | 1,428,425 | 440,045 | 26,973,644
Group Markets | 4,015,018 | 31,117 | 25,211 | - | 4,071,346
Asset/Liability Management and Local Corporate Center | 4,475,454 | 34,618 | 256,117 | 2,577 | 4,768,766
Total | 53,641,919 | 10,953,432 | 3,190,362 | 1,644,144 | 69,429,857

91
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

In the following tables, the non-performing loans and advances to customers divided by segments are contrasted with
allowances for customer loans (all allowances for loans and advances to customers within the scope of IFRS 9) and the
collateral for non-performing loans (NPL). The NPL ratio, the NPL coverage ratio (excluding collateral), and the NPL
collateralization ratio are also included.
The NPL ratio of loans and advances to customers is calculated by dividing the gross carrying amount of non-performing
loans and advances to customers by the total gross carrying amount of loans and advances to customers. Consequently, it
differs from the NPE ratio in section ‘‘Credit risk exposure’. Collaterals for non-performing loans mainly consist of real
estates.
The NPL coverage ratio (excluding collateral) is calculated according to Group’s internal definition by dividing total loss
allowances (calculated for both performing and non-performing loans and advances to customers) by the gross carrying
amount of the non-performing loans and advances to customers. Collateral or other recoveries are not taken into account.
92
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Non-performing loans and advances to customers by business segment and coverage by loan loss allowances and collateral

|  |  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Non-performing | Gross customer loans | Loan loss allowances | Collateral for NPL | NPL ratio | NPL coverage (exc collateral) | NPL collateralisation ratio
Total | AC | Total | AC | AC | Total | AC | Total | AC | AC | Total | AC
Retail | 1,166,516 | 1,166,516 | 38,787,338 | 38,787,338 | -1,656,205 | 405,872 | 405,872 | 3.01% | 3.01% | 141.98% | 34.79% | 34.79%
Corporates | 857,085 | 857,085 | 32,164,108 | 32,164,108 | -1,002,192 | 312,853 | 312,853 | - | - | 116.93% | 36.50% | 36.50%
Group Markets | - | - | 4,479,929 | 4,479,929 | -12,080 | - | - | - | - | - | - | -
Asset/Liability Management and Local Corporate Center | 512 | 512 | 196,106 | 196,106 | -947 | 146 | 146 | 0.26% | 0.26% | 184.96% | 28.52% | 28.52%
Total | 2,024,113 | 2,024,113 | 75,627,481 | 75,627,481 | -2,671,424 | 718,871 | 718,871 | 2.68% | 2.68% | 131.98% | 35.52% | 35.52%

|  |  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Non-performing | Gross customer loans | Loan loss allowances | Collateral for NPL | NPL ratio | NPL coverage (exc collateral) | NPL collateralisation ratio
Total | AC | Total | AC | AC | Total | AC | Total | AC | AC | Total | AC
Retail | 1,271,131 | 1,271,131 | 35,003,683 | 35,003,680 | -1,909,293 | 406,557 | 406,557 | 3.63% | 3.63% | 150.20% | 31.98% | 31.98%
Corporates | 549,257 | 549,257 | 30,291,729 | 30,291,842 | -1,156,004 | 222,739 | 222,739 | - | - | 210.47% | - | -
Group Markets | - | - | 4,071,347 | 4,071,347 | -6,494 | - | - | - | - | - | - | -
Asset/Liability Management and Local Corporate Center | 97 | 97 | 439,746 | 439,746 | -411 | - | - | 0.02% | 0.02% | 423.71% | - | -
Total | 1,820,485 | 1,820,485 | 69,806,505 | 69,806,615 | -3,072,202 | 629,296 | 629,296 | 2.61% | 2.61% | 168.76% | 34.57% | 34.57%

|  |  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Non-performing | Gross customer loans | Loan loss allowances | Collateral for NPL | NPL ratio | NPL coverage (exc collateral) | NPL collateralisation ratio
Total | AC | Total | AC | AC | Total | AC | Total | AC | AC | Total | AC
Retail | 1,084,771 | 1,084,771 | 37,145,649 | 37,145,649 | -1,578,035 | 363,645 | 363,645 | 2.92% | 2.92% | 145.47% | 33.52% | 33.52%
Corporates | 768,624 | 768,624 | 28,570,085 | 28,570,085 | -909,795 | 259,792 | 259,792 | - | - | 118.37% | 33.80% | 33.80%
Group Markets | - | - | 4,479,929 | 4,479,929 | -12,080 | - | - | - | - | - | - | -
Asset/Liability Management and Local Corporate Center | 512 | 512 | 4,963,843 | 4,963,843 | -5,903 | 146 | 146 | 0.01% | 0.01% | 1152.93% | 28.52% | 28.52%
Total | 1,853,907 | 1,853,907 | 75,159,506 | 75,159,506 | -2,505,813 | 623,583 | 623,583 | 2.47% | 2.47% | 135.16% | 33.64% | 33.64%

93
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Non-performing | Gross customer loans | Loan loss allowances | Collateral for NPL | NPL ratio | NPL coverage (exc collateral) | NPL collateralisation ratio
Total | AC | Total | AC | AC | Total | AC | Total | AC | AC | Total | AC
Retail | 1,201,522 | 1,201,522 | 33,616,102 | 33,616,101 | -1,838,118 | 366,431 | 366,431 | 3.57% | 3.57% | 152.98% | 30.50% | 30.50%
Corporates | 440,045 | 440,045 | 26,973,644 | 26,973,644 | -1,054,691 | 149,770 | 149,770 | - | - | 239.68% | - | -
Group Markets | - | - | 4,071,347 | 4,071,347 | -6,494 | - | - | - | - | - | - | -
Asset/Liability Management and Local Corporate Center | 2,577 | 2,577 | 4,768,765 | 4,768,765 | -5,516 | - | - | 0.05% | 0.05% | 214.05% | - | -
Total | 1,644,144 | 1,644,144 | 69,429,858 | 69,429,857 | -2,904,819 | 516,201 | 516,201 | 2.37% | 2.37% | 176.68% | 31.40% | 31.40%

Loans and advances to customers at AC and coverage by loan loss allowances by business segment and IFRS 9 treatment

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Group |
in RON thousands | Loans to customers | Loan loss allowances | Stage 2 coverage ratio | Stage 3 coverage ratio | POCI coverage ratio |
Stage 1 | Stage 2 | Stage 3 | POCI | Stage 1 | Stage 2 | Stage 3 | POCI |
Retail | 33,545,056 | 3,975,691 | 1,137,113 | 129,477 | -241,785 | -499,114 | -900,411 | -14,944 | 12.55% | 79.18% | 11.54% |
Corporates | 27,428,310 | 3,870,558 | 742,690 | 122,550 | -211,269 | -272,267 | -517,575 | -1,080 | 7.03% | 69.69% | 0.88% |
Group Markets | 4,136,944 | 342,986 | - | - | -3,310 | -8,769 | - | - | 2.56% | - | - |
Asset/Liability Management and Local Corporate Center | 102,250 | 93,344 | 512 | - | -209 | -179 | -512 | - | 0.19% | 100.00% | - |
Total | 65,212,560 | 8,282,579 | 1,880,315 | 252,027 | -456,573 | -780,329 | -1,418,498 | -16,024 | 9.42% | 75.44% | 6.36% |

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Loans to customers | Loan loss allowances | Stage 2 coverage ratio | Stage 3 coverage ratio | POCI coverage ratio
Stage 1 | Stage 2 | Stage 3 | POCI | Stage 1 | Stage 2 | Stage 3 | POCI
Retail | 28,655,472 | 4,977,541 | 1,235,391 | 135,276 | -211,782 | -547,377 | -1,123,406 | -26,727 | 11.00% | 90.94% | 19.76%
Corporates | 24,448,761 | 5,284,797 | 536,814 | 21,469 | -242,575 | -542,259 | -368,299 | -2,871 | 10.26% | 68.61% | 13.37%
Group Markets | 4,045,514 | 25,833 | - | - | -5,224 | -1,270 | - | - | 4.92% | - | -
Asset/Liability Management and Local Corporate Center | 437,758 | 1,892 | 97 | - | -294 | -21 | -97 | - | 1.11% | 100.00% | -
Total | 57,587,505 | 10,290,063 | 1,772,302 | 156,745 | -459,875 | -1,090,927 | -1,491,802 | -29,598 | 10.60% | 84.17% | 18.88%

94
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Loans to customers | Loan loss allowances | Stage 2 coverage ratio | Stage 3 coverage ratio | POCI coverage ratio
Stage 1 | Stage 2 | Stage 3 | POCI | Stage 1 | Stage 2 | Stage 3 | POCI
Retail | 32,400,630 | 3,560,175 | 1,055,367 | 129,477 | -221,770 | -481,674 | -859,647 | -14,944 | 13.53% | 81.45% | 11.54%
Corporates | 24,590,109 | 3,203,196 | 654,764 | 122,015 | -183,316 | -247,936 | -477,731 | -812 | 7.74% | 72.96% | 0.67%
Group Markets | 4,136,944 | 342,986 | - | - | -3,311 | -8,769 | - | - | 2.56% | - | -
Asset/Liability Management and Local Corporate Center | 4,864,333 | 98,998 | 512 | - | -5,164 | -227 | -512 | - | 0.23% | 100.00% | -
Total | 65,992,016 | 7,205,355 | 1,710,643 | 251,492 | -413,561 | -738,606 | -1,337,890 | -15,756 | 10.25% | 78.21% | 6.27%

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Loans to customers | Loan loss allowances | Stage 2 coverage ratio | Stage 3 coverage ratio | POCI coverage ratio
Stage 1 | Stage 2 | Stage 3 | POCI | Stage 1 | Stage 2 | Stage 3 | POCI
Retail | 27,752,701 | 4,562,344 | 1,165,782 | 135,276 | -195,806 | -527,812 | -1,087,773 | -26,727 | 11.57% | 93.31% | 19.76%
Corporates | 21,704,284 | 4,820,289 | 428,238 | 20,832 | -213,431 | -524,535 | -314,175 | -2,550 | 10.88% | 73.36% | 12.24%
Group Markets | 4,045,514 | 25,833 | - | - | -5,224 | -1,270 | - | - | 4.92% | - | -
Asset/Liability Management and Local Corporate Center | 4,763,899 | 2,289 | 2,466 | 110 | -4,114 | -24 | -1,268 | -110 | 1.05% | 51.42% | 100.00%
Total | 58,266,398 | 9,410,755 | 1,596,486 | 156,218 | -418,575 | -1,053,641 | -1,403,216 | -29,387 | 11.20% | 87.89% | 18.81%

95
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

29. Market risk
Definition and overview
Market risk is the risk of loss that may arise due to adverse changes in market prices and to the parameters derived
therefrom. These market value changes might appear in the profit and loss account or in the statements of other
comprehensive income. Market risk is divided into interest rate risk, credit spread risk, currency risk, equity risk and
commodity risk. This concerns both the trading and the banking book positions.
Methods and instruments employed
Potential losses from the trading book that may arise from market movements are assessed using the value at risk (‘VaR’).
The calculation is done according to the method of historic simulation with a one-sided confidence level of 99%, a holding
period of one day and a simulation period of two years. The VaR describes what level of losses may be expected as a
maximum at a defined probability – the confidence level – within a certain holding period of the positions under
historically observed market conditions.
On the one hand, the confidence level is limited to 99%, and on the other hand, the model takes into account only those
market scenarios observed in each case within the simulation period of two years and calculates the VaR for the current
position of the bank on this basis. In order to investigate any extreme market situations beyond this, stress tests are
conducted. These events include mainly market movements of low probability.
The Trading Book VaR model was approved by the Financial Market Authority (‘FMA’) as an internal market risk model to
determine the own funds requirements of the trading book of Erste Group pursuant to the Austrian Banking Act.
For internal Pillar 2 capital purposes, the VaR confidence level is scaled to 99.92% and the holding period is extended to one
year.
Methods and instruments of risk mitigation
Market risks are controlled in the trading book by setting several layers of limits. The overall limit on the basis of VaR for
the trading book is allocated by the management board within the Risk Appetite Framework while taking into account the
risk-bearing capacity and projected earnings. All market risk activities of the trading book are assigned risk limits that are
consistent in their entirety with the VaR overall limit. The VaR limit is assigned in a top-down procedure to the individual
trading units. Limit compliance is verified on a daily basis by the Market and Liquidity Risk unit. On demand limit reports
can also be triggered by individual traders or chief traders on an ad hoc basis.
As an inherent part of its business, BCR is exposed to interest rate risk arising from the characteristics of assets, liabilities
and off-balance sheet items as well as arising from the expected development of the balance sheet and banking activity.
In BCR the following methods which are used to measure interest rate risk in the banking book:
• Economic value measures (EVE) to assess the market value change under certain scenarios;
• Value at Risk based measures used for economic capital allocation under Pillar 2;
• Earnings at risk measure (NII sensitivity) to assess the impact on operating income of certain scenarios on BCR
level. This also comprises valuation impacts on other comprehensive income (OCI);
• Sensitivity measures (BP01, CR01) to assess the market value sensitivity of certain portfolios;
• Credit Spread Risk indicators: EVE and NII credit spread sensitivities in relation to Tier 1 capital;
• Earnings at risk over mid-term horizons: NII sensitivity over different time horizons including market value.
BCR has in place strategies, policies and practices to manage interest rate risks in accordance with the risk tolerance. All
internal and regulatory limits are monitored and reported to senior management.
The strategic steering of interest rate risk exposure is future oriented and based on the forecasted movements of the market
variables (primarily interest rates) and business developments over a given – typically medium to long term - planning
horizon.
Exchange rate risk
Risk from open foreign exchange positions is the risk related to exchange rates that derives from the mismatch between
assets and liabilities, or from currency-related financial derivatives. These risks might originate from customer-related
operations or proprietary trading and are monitored and managed on a daily basis.
96
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Principles of managing foreign exchange risk
The FX Risk shows the sensitivity of BCR’s open FX position to FX rate fluctuations. For both Banking Book and Trading
Book, the FX position in BCR is monitored and reported on a daily basis. An internal limit was established for the net open
position as a percentage from own funds.
The FX risk from trading book portfolio is also monitored on a daily basis through the VaR FX component of the total VaR
by the Market and Liquidity Risk unit.
Analysis of market risk
The open FX position for year end 2025 and the resulting sensitivities are immaterial.
Value at Risk of trading book
The following tables show the VaR amounts as of 31 December 2025 and 31 December 2024 using equally weighted market
data and with a holding period of one year. The confidence level is 99.9%.

Bank |  |  |  |  |
in RON thousands | FX position | Fixed Income | Money Market | Equity | Total Trading Book
As at 31 December 2025 | 2 | 81,093 | 42,583 | - | 78,923
As at 31 December 2024 | 11 | 49,165 | 49,812 | - | 52,165

Interest rate risk of banking book
Interest rate risk is the risk of an adverse change in the fair value of financial instruments caused by a movement in market
interest rates. This type of risk arises when mismatches exist between assets and liabilities, including derivatives, in respect
of their maturities or of the timing of interest rate adjustments.
To identify interest rate risk, all financial instruments, including off-balance instruments are used to calculate the impact of
certain interest rate scenarios on their economic value and net interest income. Limits and thresholds are implemented for
both aspects of IRRBB, the change in economic value as well as the change in net interest income. Positions without
contractually defined maturity or repricing structures, such as demand deposits or overdrafts are modelled accordingly. For
positions where the customer has the right to prepay his debt prepayment models are applied.
The following table shows the potential impact on economic value of equity as of 31 December 2025 and 31 December 2024
for BCR Bank. A negative sign represents a negative impact on economic value of equity, while a positive sign shows a
positive impact. The interest rate shocks used in the EVE calculation are based on the prescribed scenarios for Supervisory
outlier test on EVE defined in EU Regulation 856/2024.

Bank |  |  |
Supervisory shock scenarios |  | Changes of the economic value of equity |
|  | Dec-2025 | Dec-2024
1 | Parallel up | -927,046 | -625,740
2 | Parallel down | -52,318 | 105,393
3 | Steepener | 215,045 | 123,665
4 | Flattener | -621,950 | -355,924
5 | Short rates up | -916,033 | -575,726
6 | Short rates down | 299,355 | 215,144

The following table shows the changes in NII (Net Interest Income) for BCR Bank for a one year period and the impact on
fair value reserve (equity) due to an instantaneous parallel shift of the yield curves with ±2%, using supervisory outlier test
methodology.

RON thousands |  | 31.12.2025 |  | RON thousands |  | 31.12.2024
Shift | Sensitivity of Net Interest Income | Sensitivity of Fair Value reserve (Equity) |  | Shift | Sensitivity of Net Interest Income | Sensitivity of AFS reserve (equity)
2% | 93,564 | -490,877 |  | 2% | 134,551 | -566,165
-2% | -167,321 | 535,128 |  | -2% | -278,449 | 619,520

97
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

30. Liquidity risk
Definition and overview
The liquidity risk is defined in the Group in line with the principles set out by the Basel Committee on Banking Supervision
and the local regulator (National Bank of Romania). Accordingly, a distinction is made between market liquidity risk,
which is the risk that the Group entities cannot easily offset or close a position at the market price because of inadequate
market depth or market disruption, and funding liquidity risk, which is the risk that the banks in the Group will not be able
to meet efficiently both expected and unexpected current and future cash flow and collateral needs without affecting either
daily operations or the financial condition of the Group members.
Funding liquidity risk is further divided into insolvency risk and structural liquidity risk. The former is the short-term risk
that current or future payment obligations cannot be met in full and on time in an economically justified manner, while
structural liquidity risk is the long-term risk of losses due to a change in the Group’s own refinancing cost or spread.
Liquidity strategy
The Liquidity Strategy is part of the Risk Strategy and was defined in accordance with the Group’s risk appetite and it was
compliant with internal and regulatory limits. The Liquidity Strategy contains developments, rules and targets including
(but not limited to) regulatory requirements (e.g. LCR, NSFR), liquidity buffer, funding plan and maturity profile of issued
debt and secured and unsecured interbank funding.
Methods and instruments employed
Short-term insolvency risk is monitored by calculating the survival period (SPA) for each significant currency and analysis
of the total portfolio in the case of the Bank.
This analysis determines the maximum period during which the entity can survive a severe combined market and
idiosyncratic crisis while relying on its pool of liquid assets. The chosen worst-case scenario simulates very limited money
market and capital market access and at the same time significant client deposit outflow.
Furthermore, the simulation assumes increased drawdown on guarantees and loan commitments dependent on the type of
the customer.
The SPA is covering a stress horizon of up to 12 months and covers the entire portfolio of the Bank.
The Bank monitors the Liquidity Coverage Ratio (‘LCR’) and Net Stable Funding Ratio (‘NSFR’) according to CRR at both
entity and group level and has included the metrics in its internal Risk Appetite Statement.
Additionally, the traditional liquidity gaps (depicting the going concern maturity mismatches) of the subsidiaries and the
group as a whole are reported and monitored regularly. Funding concentration risk is continuously analyzed in respect to
counterparties. The Group’s fund transfer pricing (FTP) system has also proven to be an efficient tool for structural
liquidity risk management.
Methods and instruments of risk mitigation
Short-term liquidity risk is managed by limits resulting from the survival period model, internal stress testing and by
internal LCR targets at both Bank and Group level. Limit breaches are reported to the Asset Liability Committee (ALCO).
Another important instrument for managing the liquidity risk within the Group and in relation to its subsidiaries is the
FTP system. As the process of planning funding needs provides important information for liquidity management, a detailed
overview of funding needs is prepared on a quarterly basis for the planning horizon across the Group.
The Contingency Funding Plan of the Group ensures the necessary coordination of all parties involved in the liquidity
management process in case of crisis and is reviewed on a regular basis. The contingency funding plans of the subsidiaries
are coordinated as part of the plan for the Group.
Analysis of liquidity risk
Financial assets
Maturities of contractual undiscounted cash flows from financial assets as of 31 December 2025 and 31 December 2024
respectively for the Group were as follows:
98
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  | 31.12.2025 | Group
In RON thousands | Carrying amounts | Contractual cash flows | < 1 month | 1-3 months | 3-6 months | 6-12 months | 1-5 years | > 5 years
Non-derivative assets | 126,119,229 | 160,073,294 | 28,036,626 | 3,985,842 | 7,142,102 | 11,853,818 | 62,754,485 | 46,300,421
Cash and cash balances | 11,440,918 | 11,440,918 | 11,440,918 | - | - | - | - | -
Debt securities | 39,771,868 | 47,242,742 | 1,191,173 | 471,503 | 3,276,754 | 4,358,644 | 27,711,954 | 10,232,714
Loans and advances to banks | 5,572,108 | 5,553,881 | 4,359,350 | 327,494 | 509,850 | - | 357,187 | -
Loans and advances to customers | 69,334,335 | 95,835,753 | 11,045,185 | 3,186,845 | 3,355,498 | 7,495,174 | 34,685,344 | 36,067,707
Derivatives | 102,599 | 12,207,282 | 3,595,518 | 2,047,995 | 5,107,058 | 490,781 | 772,653 | 193,277

|  |  |  |  |  |  | 31.12.2024 | Group
In RON thousands | Carrying amounts | Contractual cash flows | < 1 month | 1-3 months | 3-6 months | 6-12 months | 1-5 years | > 5 years
Non-derivative assets | 115,185,583 | 145,976,217 | 26,686,175 | 4,985,516 | 4,390,494 | 12,071,782 | 56,303,198 | 41,539,052
Cash and cash balances | 10,642,241 | 10,642,241 | 10,642,241 | - | - | - | - | -
Debt securities | 35,128,520 | 41,963,707 | 114,413 | 2,158,493 | 855,856 | 4,402,032 | 24,270,680 | 10,162,233
Loans and advances to banks | 6,004,729 | 6,190,698 | 5,941,993 | 248,705 | - | - | - | -
Loans and advances to customers | 63,410,093 | 87,179,571 | 9,987,528 | 2,578,318 | 3,534,638 | 7,669,750 | 32,032,518 | 31,376,819
Derivatives | 187,806 | 16,038,285 | 6,984,679 | 1,745,540 | 2,811,966 | 2,403,820 | 2,011,341 | 80,939

The financial assets as of 31 December 2025 and 31 December 2024 respectively for the Bank, were as follows:

|  |  |  |  |  |  | 31.12.2025 | Bank
In RON thousands | Carrying amounts | Contractual cash flows | < 1 month | 1-3 months | 3-6 months | 6-12 months | 1-5 years | > 5 years
Non-derivative assets | 128,324,688 | 160,005,180 | 28,077,910 | 4,038,367 | 7,074,649 | 11,826,774 | 62,740,078 | 46,247,402
Cash and cash balances | 11,435,554 | 11,435,554 | 11,435,554 | - | - | - | - | -
Debt securities | 39,638,391 | 47,242,742 | 1,191,173 | 471,503 | 3,276,754 | 4,358,644 | 27,711,954 | 10,232,714
Loans and advances to banks | 5,566,874 | 5,553,881 | 4,359,350 | 327,494 | 509,850 | - | 357,187 | -
Loans and advances to customers | 71,683,869 | 95,773,003 | 11,091,833 | 3,239,370 | 3,288,045 | 7,468,130 | 34,670,937 | 36,014,688
Derivatives | 102,599 | 12,207,282 | 3,595,518 | 2,047,995 | 5,107,058 | 490,781 | 772,653 | 193,277

|  |  |  |  |  |  | 31.12.2024 | Bank
In RON thousands | Carrying amounts | Contractual cash flows | < 1 month | 1-3 months | 3-6 months | 6-12 months | 1-5 years | > 5 years
Non-derivative assets | 117,073,895 | 145,946,600 | 26,781,113 | 4,948,088 | 4,283,764 | 12,054,066 | 56,337,589 | 41,541,980
Cash and cash balances | 10,596,154 | 10,596,154 | 10,596,154 | - | - | - | - | -
Debt securities | 35,002,258 | 41,963,707 | 114,413 | 2,158,493 | 855,856 | 4,402,032 | 24,270,680 | 10,162,233
Loans and advances to banks | 5,960,826 | 6,190,698 | 5,941,993 | 248,705 | - | - | - | -
Loans and advances to customers | 65,514,657 | 87,196,041 | 10,128,553 | 2,540,890 | 3,427,908 | 7,652,034 | 32,066,909 | 31,379,747
Derivatives | 187,806 | 16,038,285 | 6,984,679 | 1,745,540 | 2,811,966 | 2,403,820 | 2,011,341 | 80,939

99
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Financial liabilities
Maturities of contractual undiscounted cash flows from financial liabilities as of 31 December 2025 and 31 December 2024
for the Group, were as follows:

|  |  |  |  |  |  | 31.12.2025 | Group
in thousands RON | Carrying amounts | Contractual cash flows | < 1 month | 1-3 months | 3-6 months | 6-12 months | 1-5 years | > 5 years
Non-derivative liabilities | 110,509,899 | 113,190,816 | 68,821,433 | 10,721,070 | 7,296,563 | 7,487,315 | 14,660,350 | 4,204,085
Deposits by banks | 3,179,432 | 3,218,031 | 2,693,425 | 72,111 | 36,989 | 96,134 | 299,359 | 20,013
Customer deposits | 93,084,106 | 93,742,727 | 66,109,580 | 10,622,702 | 6,881,538 | 6,398,770 | 3,340,638 | 389,499
Debt securities in issue | 14,246,361 | 16,230,058 | 18,428 | 26,257 | 378,036 | 992,411 | 11,020,353 | 3,794,573
Contingent liabilities | 21,922,802 | 21,922,802 | 21,922,802 | - | - | - | - | -
Financial guarantees | - | 2,544,993 | 2,544,993 | - | - | - | - | -
Irrevocable commitments | - | 19,377,809 | 19,377,809 | - | - | - | - | -
Derivatives | 165,342 | 12,270,685 | 3,600,942 | 2,067,168 | 5,143,213 | 500,091 | 765,962 | 193,309

|  |  |  |  |  |  | 31.12.2024 | Group
in thousands RON | Carrying amounts | Contractual cash flows | < 1 month | 1-3 months | 3-6 months | 6-12 months | 1-5 years | > 5 years
Non-derivative liabilities | 103,122,864 | 105,284,656 | 66,259,512 | 10,529,434 | 6,885,532 | 6,046,244 | 15,200,949 | 362,985
Deposits by banks | 1,707,994 | 1,760,945 | 1,170,174 | 40,323 | 35,274 | 82,173 | 401,745 | 31,256
Customer deposits | 91,007,840 | 91,557,564 | 65,074,616 | 10,465,350 | 6,477,816 | 5,760,140 | 3,447,913 | 331,729
Debt securities in issue | 10,407,030 | 11,966,147 | 14,722 | 23,761 | 372,442 | 203,931 | 11,351,291 | -
Contingent liabilities | 18,806,017 | 18,806,017 | 18,806,017 | - | - | - | - | -
Financial guarantees | - | 2,151,132 | 2,151,132 | - | - | - | - | -
Irrevocable commitments | - | 16,654,885 | 16,654,885 | - | - | - | - | -
Derivatives | 133,740 | 16,023,357 | 6,927,808 | 1,735,673 | 2,814,521 | 2,425,647 | 2,038,897 | 80,811

Maturities of contractual undiscounted cash flows from financial liabilities as of 31 December 2025 and 31 December 2024
respectively for the Bank were as follows:

|  |  |  |  |  |  | 31.12.2025 | Bank
in thousands RON | Carrying amounts | Contractual cash flows | < 1 month | 1-3 months | 3-6 months | 6-12 months | 1-5 years | > 5 years
Non-derivative liabilities | 111,077,377 | 113,606,552 | 69,274,287 | 10,992,486 | 7,259,574 | 7,414,182 | 14,461,938 | 4,204,085
Deposits by banks | 3,370,715 | 3,390,472 | 2,902,984 | 343,527 | - | 23,001 | 100,947 | 20,013
Customer deposits | 93,460,301 | 93,986,022 | 66,352,875 | 10,622,702 | 6,881,538 | 6,398,770 | 3,340,638 | 389,499
Debt securities in issue | 14,246,361 | 16,230,058 | 18,428 | 26,257 | 378,036 | 992,411 | 11,020,353 | 3,794,573
Contingent liabilities | 21,825,727 | 21,825,727 | 21,825,727 | - | - | - | - | -
Financial guarantees | - | 2,586,700 | 2,586,700 | - | - | - | - | -
Irrevocable commitments | - | 19,239,027 | 19,239,027 | - | - | - | - | -
Derivatives | 165,342 | 12,270,685 | 3,600,942 | 2,067,168 | 5,143,213 | 500,091 | 765,962 | 193,309

|  |  |  |  |  |  | 31.12.2024 | Bank
in thousands RON | Carrying amounts | Contractual cash flows | < 1 month | 1-3 months | 3-6 months | 6-12 months | 1-5 years | > 5 years
Non-derivative liabilities | 103,501,744 | 105,472,960 | 66,877,066 | 10,502,804 | 6,850,258 | 5,976,664 | 14,903,183 | 362,985
Deposits by banks | 1,813,319 | 1,832,878 | 1,671,357 | 13,693 | - | 12,593 | 103,979 | 31,256
Customer deposits | 91,281,395 | 91,673,935 | 65,190,987 | 10,465,350 | 6,477,816 | 5,760,140 | 3,447,913 | 331,729
Debt securities in issue | 10,407,030 | 11,966,147 | 14,722 | 23,761 | 372,442 | 203,931 | 11,351,291 | -
Contingent liabilities | 18,797,012 | 18,797,012 | 18,797,012 | - | - | - | - | -
Financial guarantees | - | 2,301,159 | 2,301,159 | - | - | - | - | -
Irrevocable commitments | - | 16,495,853 | 16,495,853 | - | - | - | - | -
Derivatives | 133,740 | 16,023,357 | 6,927,808 | 1,735,673 | 2,814,521 | 2,425,647 | 2,038,897 | 80,811

100
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

As of year-end 2025, the currency composition of the deposits consisted of approximately 69.41% RON (66.91% RON as of
year-end 2024), 27.34% EUR (28.70% as of year-end 2024), 2.94% USD (4.06% as of year-end 2024) and the rest 0.31% in
other currencies.
The short-term liquidity gap for the Group was mitigated. For liquidity reporting purposes demand deposits and savings
accounts are mapped to the first time bucket, without assuming any behavioral modelling. In reality demand deposits have
empirically a long weighted average lifetime and there is no expectation of these significant transactional accounts
outflowing overnight. Furthermore, the Bank has a significant liquidity buffer, amounting to 34% of Total Assets that can
comfortably cover liquidity needs. The liquidity buffer was calculated in accordance with the requirements for the LCR
HQLA which are defined in the Delegated Act regulation.
101
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 8 – Non-current assets and other investments
31. Property, equipment and investment properties
Property and equipment
Depreciation of property and equipment is calculated using the straight-line method to write down the cost of property and
equipment to their residual values over their estimated useful lives. Land is not depreciated.
The estimated useful lives are as follows:
• Buildings 30 to 50 years (mainly 50 years)
• Office equipment 3 to 10 years
• Other furniture and equipment 3 to 10 years
• Investment properties 30 to 50 years.
Depreciation is recognised in the statements of profit or loss in the line item ‘Depreciation and amortisation’ and
impairment in the line item ‘Other operating result’.
Any impairment losses including their reversals and gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is recognized in ‘Other operating result’
in the statements of profit or loss in the year the asset are derecognized.
Investment properties
Investment property is property (land and buildings or part of a building or both) held for the purpose of earning rental
income or for capital appreciation or both.
Investment property is presented in the statements of financial position in the line item ‘Investment properties’.
An investment property is measured initially at its cost taking into account any expenditure directly attributable to the
purchase (e.g. fees paid to the estate agent, notarial fees, property transfer taxes and fees).
After initial recognition an investment property is measured at cost (cost model) in accordance with IAS 16. Following that,
an investment property is carried at its cost less any accumulated depreciation and any accumulated impairment losses.
Investment properties are derecognized when either they have been disposed of or when the investment property is
permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the
net disposal proceeds and the carrying amount of the asset is recognized in the profit or loss in the period of derecognition.
Rental income is recognised in the statements of profit or loss in the line item ‘Rental income from investment properties
and other operating leases’. Depreciation is presented in the statements of profit or loss in the line item ‘Depreciation and
amortisation’ using the straight-line method over an estimated useful life. Any impairment losses, as well as their reversals,
are recognised under the line item ‘Other operating result’.
Impairment
In order to determine the impairment of assets classified under IAS 16 ”Property, plant and equipment”, the Bank
compares the recoverable amount of the Bank as a whole (higher of the Bank fair value less costs to sell and its value in
use), from which the net book value of the assets which are not subject to impairment test are deducted, with the net book
value of these tangible assets.
For assets classified under IAS 40 (which includes both rented buildings and vacant buildings), the impairment was
assessed based on their fair value as established by an external valuation report.
102
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  | Group
Property and equipment - Acquisition and production costs
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 01.01.2024 | 318,312 | 436,411 | 244,994 | 266,526 | 1,266,243 | 269,411
Additions in current year (+) | 41,765 | 43,208 | 45,465 | 6,627 | 137,065 | -
Disposals and write off (-) | -57,945 | -54,712 | -38,268 | -58,976 | -209,901 | -37,084
Reclassification between classes of tangible assets | -9,472 | -783 | 33 | - | -10,222 | 10,250
Reclassification (in)/from assets held for sale | -3,937 | 539 | - | - | -3,398 | -
Balance as of 31.12.2024 | 288,723 | 424,663 | 252,224 | 214,177 | 1,179,787 | 242,577
Balance as of 01.01.2025 | 288,723 | 424,663 | 252,224 | 214,177 | 1,179,787 | 242,577
Additions in current year (+) | 52,581 | 51,561 | 63,014 | - | 167,156 | -
Disposals and write off (-) | -16,411 | -49,263 | -9,596 | -216,382 | -291,652 | -11,141
Reclassification between classes of tangible assets* | 147,703 | -2,459 | -111 | 2,205 | 147,338 | -147,895
Reclassification (in)/from assets held for sale | -10,182 | - | - | - | -10,182 | -54,303
Balance as of 31.12.2025 | 462,414 | 424,502 | 305,531 | - | 1,192,447 | 29,238

*In 2025, the Group lowered the threshold for classification of land and buildings based on the percentage of own use
occupied space out of the total available area, which determined a reclassification out of investment property in amount of
RON 147,703 thousands.

| Property and equipment - Accumulated depreciation | Group |
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties |
Balance as of 01.01.2024 | -131,919 | -248,912 | -144,215 | -174,043 | -699,089 | -136,376 |
Amortisation and depreciation (-) | -15,165 | -31,502 | -36,299 | -5,114 | -88,080 | -5,127 |
Disposals (+) | 39,932 | 53,528 | 37,726 | 9,870 | 141,056 | 17,557 |
Impairment (-) | -1,465 | -2,836 | -337 | -17,763 | -22,401 | -4,718 |
Reversal of impairment (+) | 1,893 | 23 | - | 44 | 1,960 | 2,560 |
Reclassification between classes of tangible assets (+/-) | 4,275 | 16 | 9 | -1,487 | 2,813 | -4,275 |
Reclassification (in)/from assets held for sale | 672 | - | - | - | 672 | - |
Currency translation (+/-) | - | 8 | - | - | 8 | - |
Balance as of 31.12.2024 | -101,777 | -229,675 | -143,116 | -188,493 | -663,061 | -130,379 |
Balance as of 01.01.2025 | -101,777 | -229,675 | -143,116 | -188,493 | -663,061 | -130,379 |
Amortisation and depreciation (-) | -19,795 | -34,286 | -35,460 | -1,297 | -90,838 | -4,768 |
Disposals (+) | 14,374 | 48,244 | 9,400 | 185,107 | 257,125 | 4,818 |
Impairment (-) | -2,010 | -2,377 | -297 | -4,552 | -9,236 | -1,244 |
Reversal of impairment (+) | 139 | 412 | - | 531 | 1,082 | 1,600 |
Reclassification between classes of tangible assets (+/-) | -79,747 | -8,703 | -2 | 8,704 | -79,748 | 79,747 |
Reclassification (in)/from assets held for sale | 2,792 | - | - | - | 2,792 | 36,331 |
Balance as of 31.12.2025 | -186,024 | -226,385 | -169,475 | - | -581,884 | -13,895 |
|  |  |  |  |  | Group |
| Property and equipment net |
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties |
Balance as of 31.12.2024 | 186,946 | 194,988 | 109,108 | 25,684 | 516,726 | 112,198 |
Balance as of 31.12.2025 | 276,390 | 198,117 | 136,056 | - | 610,563 | 15,343 |

103
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Rights of use property, equipment and investment properties

|  |  |  |  |  | Group
Right of use property and equipment - Acquisition costs
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 01.01.2024 | 688,174 | 1,537 | - | 78,547 | 768,258 | -
Additions in current year (+) | 106,329 | 1,829 | - | 59,024 | 167,182 | -
Disposals and write off (-) | -94,423 | - | - | -12,129 | -106,552 | -
Balance as of 31.12.2024 | 700,080 | 3,366 | - | 125,442 | 828,888 | -
Balance as of 01.01.2025 | 700,080 | 3,366 | - | 125,442 | 828,888 | -
Additions in current year (+) | 206,519 | 621 | - | 1,437 | 208,577 | -
Disposals and write off (-) | -61,744 | - | - | -78,976 | -140,720 | -
Balance as of 31.12.2025 | 844,855 | 3,987 | - | 47,903 | 896,745 | -

|  |  |  |  |  | Group
Right of use Property and equipment - Accumulated depreciation
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 01.01.2024 | -297,968 | -451 | - | -11,063 | -309,482 | -
Amortisation and depreciation (-) | -67,921 | -542 | - | -9,003 | -77,466 | -
Disposals (+) | 71,610 | - | - | 2,999 | 74,609 | -
Impairment (-) | -3,478 | - | - | - | -3,478 | -
Reversal of impairment (+) | 1 | 2 | - | - | 3 | -
Currency translation (+/-) | -3 | -2 | - | - | -5 | -
Balance as of 31.12.2024 | -297,759 | -993 | - | -17,067 | -315,819 | -
Balance as of 01.01.2025 | -297,759 | -993 | - | -17,067 | -315,819 | -
Amortisation and depreciation (-) | -68,390 | -753 | - | -10,447 | -79,590 | -
Disposals (+) | 14,446 | - | - | 9,285 | 23,731 | -
Impairment (-) | -79 | - | - | - | -79 | -
Reversal of impairment (+) | 13 | 2 | - | - | 15 | -
Reclassification between classes of tangible assets (+/-) | -78 | - | - | 78 | - | -
Currency translation (+/-) | -7 | -2 | - | - | -9 | -
Balance as of 31.12.2025 | -351,854 | -1,746 | - | -18,151 | -371,751 | -
|  |  |  |  |  | Group
Right of use Property and equipment net
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 01.01.2025 | 402,321 | 2,373 | - | 108,375 | 513,069 | -
Balance as of 31.12.2025 | 493,001 | 2,241 | - | 29,752 | 524,994 | -
|  |  |  |  |  | Group
Total -Property and equipment net
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 01.01.2025 | 589,267 | 197,361 | 109,108 | 134,059 | 1,029,795 | 112,198
Balance as of 31.12.2025 | 769,391 | 200,358 | 136,056 | 29,752 | 1,135,557 | 15,343

104
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | Bank
| Property and equipment - Acquisition and production costs
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Total property and equipment | Investment properties
Balance as of 01.01.2024 | 317,820 | 401,247 | 237,066 | 956,133 | 269,410
Additions in current year (+) | 41,765 | 41,809 | 44,486 | 128,060 | -
Disposals and write off (-) | -57,945 | -53,773 | -37,789 | -149,507 | -37,089
Reclassification between classes of tangible assets | -9,472 | -783 | 33 | -10,222 | 10,250
Reclassification (in)/from assets held for sale | -3,937 | 539 | - | -3,398 | -
Balance as of 31.12.2024 | 288,231 | 389,039 | 243,796 | 921,066 | 242,571
Balance as of 01.01.2025 | 288,231 | 389,039 | 243,796 | 921,066 | 242,571
Additions in current year (+) | 52,581 | 49,669 | 61,432 | 163,682 | -
Disposals and write off (-) | -16,411 | -48,972 | -9,556 | -74,939 | -11,145
Reclassification between classes of intangible assets (+/-) | 147,703 | 61 | -102 | 147,662 | -147,895
Reclassification (in)/from assets held for sale | -10,182 | - | - | -10,182 | -54,303
Balance as of 31.12.2025 | 461,922 | 389,797 | 295,570 | 1,147,289 | 29,228

|  |  |  |  | Bank
| Property and equipment - Accumulated depreciation
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Total property and equipment | Investment properties
Balance as of 01.01.2024 | -131,905 | -229,412 | -138,734 | -500,051 | -136,375
Amortisation and depreciation (-) | -15,011 | -30,898 | -35,026 | -80,935 | -5,127
Disposals (+) | 39,932 | 53,162 | 37,697 | 130,791 | 17,560
Impairment (-) | -1,465 | -2,811 | -337 | -4,613 | -4,716
Reversal of impairment (+) | 1,893 | 23 | - | 1,916 | 2,560
Reclassification between classes of intangible assets (+/-) | 4,275 | - | - | 4,275 | -4,275
Reclassification (in)/from assets held for sale | 672 | - | - | 672 | -
Balance as of 31.12.2024 | -101,609 | -209,936 | -136,400 | -447,945 | -130,373
Balance as of 01.01.2025 | -101,609 | -209,936 | -136,400 | -447,945 | -130,373
Amortisation and depreciation (-) | -19,644 | -33,415 | -34,378 | -87,437 | -4,768
Disposals (+) | 14,374 | 47,811 | 9,376 | 71,561 | 4,821
Impairment (-) | -2,010 | -2,377 | -296 | -4,683 | -1,244
Reversal of impairment (+) | 139 | 412 | - | 551 | 1,600
Reclassification between classes of tangible assets (+/-) | -79,747 | 2 | -2 | -79,747 | 79,747
Reclassification (in)/from assets held for sale | 2,792 | - | - | 2,792 | 36,331
Balance as of 31.12.2025 | -185,705 | -197,503 | -161,700 | -544,908 | -13,886
|  |  |  |  | Bank
| Property and equipment net
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Total property and equipment | Investment properties
Balance as of 31.12.2024 | 186,622 | 179,103 | 107,396 | 473,121 | 112,198
Balance as of 31.12.2025 | 276,217 | 192,294 | 133,870 | 602,381 | 15,342

105
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Rights of use property, equipment and investment properties

|  |  |  |  |  | Bank
Right of use property and equipment - Acquisition costs
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 01.01.2024 | 672,864 | 1,536 | - | 12,352 | 686,752 | -
Additions in current year (+) | 105,787 | 1,829 | - | 42,883 | 150,499 | -
Disposals and write off (-) | -94,389 | - | - | -12,129 | -106,518 | -
Balance as of 31.12.2024 | 684,262 | 3,365 | - | 43,106 | 730,733 | -
Balance as of 01.01.2025 | 684,262 | 3,365 | - | 43,106 | 730,733 | -
Additions in current year (+) | 196,671 | 621 | - | 1,443 | 198,735 | -
Disposals and write off (-) | -61,744 | - | - | -375 | -62,119 | -
Balance as of 31.12.2025 | 819,189 | 3,986 | - | 44,174 | 867,349 | -

|  |  |  |  |  | Bank
Right of use Property and equipment - Accumulated depreciation
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 01.01.2024 | -295,968 | -451 | - | -2,496 | -298,915 | -
Amortisation and depreciation (-) | -66,007 | -542 | - | -6,808 | -73,357 | -
Disposals (+) | 71,585 | - | - | 2,999 | 74,584 | -
Reversal of impairment (+) | -3,480 | - | - | - | -3,480 | -
Balance as of 31.12.2024 | -293,870 | -993 | - | -6,305 | -301,168 | -
Balance as of 01.01.2025 | -293,870 | -993 | - | -6,305 | -301,168 | -
Amortisation and depreciation (-) | -65,444 | -753 | - | -9,634 | -75,831 | -
Disposals (+) | 14,360 | - | - | 169 | 14,529 | -
Impairment (-) | -78 | - | - | - | -78 | -
Balance as of 31.12.2025 | -345,032 | -1,746 | - | -15,770 | -362,548 | -
|  |  |  |  |  | Bank
Right of use Property and equipment net
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 31.12.2024 | 390,392 | 2,372 | - | 36,801 | 429,565 | -
Balance as of 31.12.2025 | 474,157 | 2,240 | - | 28,404 | 504,801 | -
|  |  |  |  |  | Bank
Total Property and equipment net
in RON thousands | Land and buildings | Office and equipment / other fixed assets | IT assets (hardware) | Movable other property | Total property and equipment | Investment properties
Balance as of 31.12.2024 | 577,014 | 181,475 | 107,396 | 36,801 | 902,686 | 112,198
Balance as of 31.12.2025 | 750,374 | 194,534 | 133,870 | 28,404 | 1,107,182 | 15,342

There are no fixed assets pledged as collateral as at 31 December 2025 and 31 December 2024.
The total cost of the Group’s property, plant and equipment in use and fully depreciated at the end of 2025 was RON
207,936 thousands (2024: RON 220,724 thousands). The total cost of the Bank’s property, plant and equipment in use and
fully depreciated at the end of 2025 was RON 202,015 thousands (2024: RON 214,859 thousands).
The investment properties are measured at cost. Fair values are determined based on an annual evaluation performed by
an accredited external independent valuator. Please refer to note 32 for fair value disclosure.
Assets under construction are in amount of RON 155,582 thousands (2024: RON 104,097 thousands) for the Bank.
106
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Assets subject to operating lease:

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Land and buildings | 25,375 | 3,632 | 25,599 | 3,973
Investment property | - | 19,825 | 1,655 | 21,608
Movable other property | 1,825 | 80,920 | - | -
Total | 27,200 | 104,377 | 27,254 | 25,581

32. Fair values of non-financial assets
The following table shows fair values and fair value hierarchy of non-financial instruments at the year-end 2025 and 2024:

|  |  |  | 2025 | Group
in RON thousands | Carrying amount | Fair value | Quoted market prices in active markets Level 1 | Marked to model based on observable market data Level 2 | Marked to model based on non-observable inputs Level 3
Assets whose Fair Value is disclosed in the notes |  |  |  |  |
Investment properties | 15,343 | 16,575 | - | - | 16,575
Assets whose Fair Value is presented in the Balance sheet |  |  |  |  |
Assets held for sale (IFRS 5) | 15,204 | 20,207 | - | - | 20,207

|  |  |  | 2024 | Group
in RON thousands | Carrying amount | Fair value | Quoted market prices in active markets Level 1 | Marked to model based on observable market data Level 2 | Marked to model based on non-observable inputs Level 3
Assets whose Fair Value is disclosed in the notes |  |  |  |  |
Investment properties | 112,198 | 125,099 | - | - | 125,099
Assets whose Fair Value is presented in the Balance sheet |  |  |  |  |
Assets held for sale (IFRS 5) | 729 | 865 | - | - | 865

|  |  |  | 2025 | Bank
in RON thousands | Carrying amount | Fair value | Quoted market prices in active markets Level 1 | Marked to model based on observable market data Level 2 | Marked to model based on non-observable inputs Level 3
Assets whose Fair Value is disclosed in the notes |  |  |  |  |
Investment properties | 15,342 | 16,575 | - | - | 16,575
Assets whose Fair Value is presented in the Balance sheet |  |  |  |  |
Assets held for sale (IFRS 5) | 15,204 | 20,207 | - | - | 20,207

|  |  |  | 2024 | Bank
in RON thousands | Carrying amount | Fair value | Quoted market prices in active markets Level 1 | Marked to model based on observable market data Level 2 | Marked to model based on non-observable inputs Level 3
Assets whose Fair Value is disclosed in the notes |  |  |  |  |
Investment properties | 112,198 | 125,099 | - | - | 125,099
Assets whose Fair Value is presented in the Balance sheet |  |  |  |  |
Assets held for sale (IFRS 5) | 729 | 865 | - | - | 865

The fair values of non-financial assets is determined by experts with recognized and relevant professional qualification.
107
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | 2025 | Group
in RON thousands | Fair value | Valuation technique | Inputs used | Range of inputs (weighted average) | Reasonable change | Sensitivity of fair value measurement
Investment properties | 16,575 | Market value | Market value | Comparable market data | 10% | 1,658
Assets held for sale (IFRS 5) | 20,207 | Market value | Market value | Comparable market data | 10% | 2,021
Total recurring fair value measurements at Level 3 | 36,782 |  |  |  |  | 3,679

|  |  |  |  | 2024 | Group
in RON thousands | Fair value | Valuation technique | Inputs used | Range of inputs (weighted average) | Reasonable change | Sensitivity of fair value measurement
Investment properties | 125,099 | Valori de piata | Valori de piata | Date de piata comparabile | 10% | 12,510
Assets held for sale (IFRS 5) | 865 | Valori de piata | Valori de piata | Date de piata comparabile | 10% | 87
Total recurring fair value measurements at Level 3 | 125,964 |  |  |  |  | 12,597

|  |  |  |  | 2025 | Bank
in RON thousands | Fair value | Valuation technique | Inputs used | Range of inputs (weighted average) | Reasonable change | Sensitivity of fair value measurement
Investment properties | 16,575 | Market value | Market value | Comparable market data | 10% | 1,658
Assets held for sale (IFRS 5) | 20,207 | Market value | Market value | Comparable market data | 10% | 2,021
Total recurring fair value measurements at Level 3 | 36,782 |  |  |  |  | 3,679

|  |  |  |  | 2024 | Bank
in RON thousands | Fair value | Valuation technique | Inputs used | Range of inputs (weighted average) | Reasonable change | Sensitivity of fair value measurement
Investment properties | 125,099 | Valori de piata | Valori de piata | Date de piata comparabile | 10% | 12,510
Assets held for sale (IFRS 5) | 865 | Valori de piata | Valori de piata | Date de piata comparabile | 10% | 87
Total recurring fair value measurements at Level 3 | 125,964 |  |  |  |  | 12,597

For non-financial assets owned by Group, the valuations are carried out mainly using the comparative and investment
methods. Assessment is made on the basis of a comparison and analysis of appropriate comparable investment and rental
transactions, together with evidence of demand within the vicinity of the relevant property. The characteristics of such
similar transactions are then applied to the asset, taking into account size, location, terms, covenant and other material
factors. Such measurements are presented in Level 3 of the fair value hierarchy.
33. Intangible assets
Intangible assets include the value of computer software and licenses.
The useful lives of intangible assets are assessed to be finite. Intangible assets with finite lives are amortized over the useful
economic life. Amortization is calculated using the straight-line method to write down the cost of intangible assets to their
residual values over their estimated useful lives as follows:
• Computer software and licenses: 5-10 years. Intangible assets are reviewed annually in terms of useful life
according with IAS 38.
• Licenses are amortized on the duration of the utilization.
108
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  | Group
| Intangible assets - Acquisition and production costs
in RON thousands | Software acquired | Self-developed software within the Group | Others (licenses, patents) | Total
Balance as of 01.01.2024 | 981,837 | 203,940 | 192,189 | 1,377,966
Additions in current year (+) | 79,178 | 49,944 | 3,467 | 132,589
Disposals and write off (-) | -49,241 | -12 | -35,441 | -84,694
Reclassification between classes of intangible assets (+/-) | 42,744 | -42,744 | -27 | -27
Balance as of 31.12.2024 | 1,054,518 | 211,128 | 160,188 | 1,425,834
Balance as of 01.01.2025 | 1,054,518 | 211,128 | 160,188 | 1,425,834
Additions in current year (+) | 95,076 | 50,447 | 4,236 | 149,759
Disposals and write off (-) | -32,896 | -58 | -9,071 | -42,025
Reclassification between classes of intangible assets (+/-) | 26,744 | -27,229 | 1,042 | 557
Balance as of 31.12.2025 | 1,143,442 | 234,288 | 156,395 | 1,534,125

|  |  |  | Group
| Intangible assets - Accumulated amortisation
in RON thousands | Software acquired | Self-developed software within the Group | Others (licenses, patents) | Total
Balance as of 01.01.2024 | -617,152 | -125,141 | -181,416 | -923,709
Amortisation and depreciation (-) | -73,502 | -9,137 | -5,793 | -88,432
Disposals and write off (+) | 47,573 | 12 | 35,441 | 83,026
Impairment (-) | -869 | -12 | -354 | -1,235
Reclassification between classes of intangible assets (+/-) | 1,462 | - | - | 1,462
Balance as of 31.12.2024 | -642,488 | -134,278 | -152,122 | -928,888
Balance as of 01.01.2025 | -642,488 | -134,278 | -152,122 | -928,888
Amortisation and depreciation (-) | -78,222 | -12,210 | -5,318 | -95,750
Disposals and write off (+) | 32,896 | 56 | 9,071 | 42,023
Impairment (-) | -200 | -56 | -1 | -257
Reversal of impairment (+) | 13 | - | - | 13
Balance as of 31.12.2025 | -688,001 | -146,488 | -148,370 | -982,859
|  |  |  | Group
| Net intangible assets
in RON thousands | Software acquired | Self-developed software within the Group | Others (licenses, patents) | Total
Balance as of 31.12.2024 | 412,030 | 76,850 | 8,066 | 496,946
Balance as of 31.12.2025 | 455,441 | 87,800 | 8,025 | 551,266

109
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  | Bank
| Intangible assets - Acquisition and production costs
in RON thousands | Software acquired | Self-developed software within the Group | Others (licenses, patents) | Total
Balance as of 01.01.2024 | 924,722 | 203,940 | 191,808 | 1,320,470
Additions in current year (+) | 67,933 | 49,944 | 3,449 | 121,326
Disposals and write off (-) | -41,524 | -12 | -35,441 | -76,977
Reclassification between classes of intangible assets (+/-) | 42,744 | -42,744 | -27 | -27
Balance as of 31.12.2024 | 993,875 | 211,128 | 159,789 | 1,364,792
Balance as of 01.01.2025 | 993,875 | 211,128 | 159,789 | 1,364,792
Additions in current year (+) | 82,144 | 50,447 | 4,232 | 136,823
Disposals and write off (-) | -32,569 | -58 | -9,062 | -41,689
Reclassification between classes of intangible assets (+/-) | 26,421 | -27,229 | 1,041 | 233
Balance as of 31.12.2025 | 1,069,871 | 234,288 | 156,000 | 1,460,159

|  |  |  | Bank
| Intangible assets - Accumulated amortisation
in RON thousands | Software acquired | Self-developed software within the Group | Others (licenses, patents) | Total
Balance as of 01.01.2024 | -583,486 | -125,141 | -181,045 | -889,672
Amortisation and depreciation (-) | -67,459 | -9,137 | -5,782 | -82,378
Disposals and write off (-) | 41,524 | 12 | 35,441 | 76,977
Impairment (-) | -869 | -12 | -354 | -1,235
Balance as of 31.12.2024 | -610,290 | -134,278 | -151,740 | -896,308
Balance as of 01.01.2025 | -610,290 | -134,278 | -151,740 | -896,308
Amortisation and depreciation (-) | -72,577 | -12,210 | -5,306 | -90,093
Disposals and write off (-) | 32,569 | 56 | 9,062 | 41,687
Impairment (-) | -200 | -56 | -1 | -257
Reversal of impairment (+) | 13 | - | - | 13
Balance as of 31.12.2025 | -650,485 | -146,488 | -147,985 | -944,958
|  |  |  | Bank
| Net intangible assets
in RON thousands | Software acquired | Self-developed software within the Group | Others (licenses, patents) | Total
Balance as of 31.12.2024 | 383,585 | 76,850 | 8,049 | 468,484
Balance as of 31.12.2025 | 419,386 | 87,800 | 8,015 | 515,201

Within the process of software development, there is internal effort allocated. The capitalization of the internal effort is
done in Assets under construction (AUC) in the class related to internal effort (Self developed software). When the
development is deployed into production environment, the put in function document (PIF) is reflected at the level of the
application onto which the actual development took place (majority of internal allocated development effort is done on
applications classified as Software acquired).
The total cost of the Group’s intangible fixed assets in use and fully amortized at the end of 2025 was RON 309,886
thousands (2024: RON 319,388 thousands). The total cost of the Bank’s intangible fixed assets in use and fully amortized at
the end of 2025 was RON 287,598 thousands (2024: RON 298,576 thousands).
Assets under construction are in amount of RON 76,661 thousands (2024: RON 30,722 thousands) for the Group and the
Bank and represent various software developments.
110
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

34. Other assets and investment in subsidiaries

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Accrued income | 87,517 | 65,741 | 76,838 | 54,524
Inventories (i) | 22,675 | 31,078 | 1,643 | 4,185
Sundry assets (ii) | 102,999 | 164,186 | 48,586 | 56,563
Other assets | 213,191 | 261,005 | 127,067 | 115,272
Investment in subsidiaries (iii) | - | - | 925,316 | 613,371
Total other assets and investments in subsidiaries | 213,191 | 261,005 | 1,052,383 | 728,643

(i) This position represents ‘Repossessed Asset’, for the Bank and for subsidiaries;
(ii) The deviation versus December 2024 is mainly explained by variation of advances to suppliers for assets for acquiring
assets to be subject of financial leasing in BCR Leasing;
(iii) The deviation in Bank’s net investments in subsidiaries and other companies is related to partial release in BCR
Banca pentru Locuinte, as explaned in Note 40. 2025: RON 925,316 thousands (2024: RON 613,371 thousands).
35. Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement and
requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset.
Leases where the Group is a lessor
Interest income on the receivable is reported in the statements of financial position in the line item ‘Other similar income’
under ‘Net interest income’.
In the case of operating leases, which are leases other than finance leases, the leased asset is reported by the lessor in
‘Property and equipment’ or in ‘Investment properties’ and is depreciated in accordance with the principles applicable to
the assets involved.
On the side of the lessor, a distinction is made between finance leases and operating leases. A finance lease is a lease that
transfers substantially all the risks and rewards incidental to ownership of an asset. In the case of a finance lease, the
Group reports a receivable from the lessee under the line item ‘Finance lease receivables’. The receivable is equal to the
present value of the contractually agreed payments taking into account any residual value. Interest income on the
receivable is reported in the statements of profit or loss in the line item ‘Other similar income’ under ‘Net interest income’.
Finance leases
The Group acts as a lessor under finance leases through the subsidiary BCR Leasing IFN SA, mainly on motor vehicles and
equipment. The leases are mainly denominated in EUR and typically run for a period of between 1-5 years, with transfer of
ownership of the financed asset at the end of the lease term. Interest is charged over the period of the lease based on fixed
or variable (almost the entire portfolio is linked to EURIBOR+interest rate).
The receivables are secured by the underlying assets and by other collateral.
For finance lease receivables included in this item, the reconciliation of the gross investment in leases to the present value
of outstanding lease payments is as follows:

| Group | Bank
| 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Total amount of outstanding lease payments receivables | 2,967,588 | 2,592,430 | 34,212 | 17,192
Gross investment | 2,967,588 | 2,592,430 | 34,212 | 17,192
Total amount of related unearned finance income from lease agreements | -190,668 | -187,241 | -3,808 | -962
Net investment | 2,776,920 | 2,405,189 | 30,404 | 16,230
Present value of outstanding lease payments | 2,776,920 | 2,405,189 | 30,404 | 16,230

111
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The residual maturity analysis of gross investment in leases and present values of outstanding lease payments under non-
cancellable leases is as follows:

Group | Gross investment | Present value of outstanding lease payments
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
< 1 year | 1,053,470 | 942,838 | 988,926 | 883,511
1-2 years | 785,883 | 695,069 | 719,525 | 628,813
2-3 years | 575,235 | 476,570 | 538,692 | 439,665
3-4 years | 344,671 | 292,502 | 328,342 | 275,684
4-5 years | 160,841 | 131,409 | 155,611 | 125,785
> 5 years | 47,488 | 54,042 | 45,824 | 51,731
Total | 2,967,588 | 2,592,430 | 2,776,920 | 2,405,189

Bank | Gross investment | Present value of outstanding lease payments
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
< 1 year | 4,992 | 4,169 | 4,434 | 3,945
1-2 years | 5,080 | 4,647 | 4,514 | 4,396
2-3 years | 4,763 | 4,272 | 4,232 | 4,025
3-4 years | 4,521 | 4,096 | 4,019 | 3,857
4-5 years | 5,053 | 8 | 4,492 | 7
> 5 years | 9,803 | - | 8,713 | -
Total | 34,212 | 17,192 | 30,404 | 16,230

Finance lease receivables

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Group
in RON thousands | Gross carrying amount | Credit loss allowances | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
General governments | 1,056 | 384 | - | - | 1,440 | -18 | -29 | - | - | -47 | 1,393
Credit institutions | - | 74 | - | - | 74 | - | - | - | - | - | 74
Other financial corporations | 42,776 | 9,433 | 85 | - | 52,294 | -603 | -333 | -85 | - | -1,021 | 51,273
Non-financial corporations | 2,084,073 | 499,491 | 76,252 | 535 | 2,660,351 | -23,804 | -18,287 | -35,655 | -268 | -78,014 | 2,582,337
Households | 30,285 | 12,681 | 2,247 | - | 45,213 | -442 | -779 | -888 | - | -2,109 | 43,104
Total | 2,158,190 | 522,063 | 78,584 | 535 | 2,759,372 | -24,867 | -19,428 | -36,628 | -268 | -81,191 | 2,678,181

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Group
in RON thousands | Gross carrying amount | Credit loss allowances | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
General governments | 1,160 | 359 | - | - | 1,519 | -34 | -47 | - | - | -81 | 1,438
Other financial corporations | 30,557 | 2,886 | 306 | - | 33,749 | -510 | -43 | -159 | - | -712 | 33,037
Non-financial corporations | 1,762,043 | 472,035 | 95,698 | 637 | 2,330,413 | -19,603 | -18,442 | -43,142 | -320 | -81,507 | 2,248,906
Households | 31,150 | 6,816 | 1,542 | - | 39,508 | -334 | -517 | -653 | - | -1,504 | 38,004
Total | 1,824,910 | 482,096 | 97,546 | 637 | 2,405,189 | -20,481 | -19,049 | -43,954 | -320 | -83,804 | 2,321,385

112
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  |  |  |  |  |  | 31.12.2025 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances | Carrying amount
| Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
Credit institutions | - | 1,840 | - | - | 1,840 | - | -3 | - | - | -3 | 1,837
Other financial corporations | 24,364 | 3,136 | - | - | 27,500 | -14 | -6 | - | - | -20 | 27,480
Non-financial corporations | 748 | 315 | - | - | 1,063 | -4 | -1 | - | - | -5 | 1,058
Total | 25,112 | 5,291 | - | - | 30,403 | -18 | -10 | - | - | -28 | 30,375

|  |  |  |  |  |  |  |  |  | 31.12.2024 | Bank
in RON thousands | Gross carrying amount | Credit loss allowances | Carrying amount
in EUR million | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total
Credit institutions | - | - | 2,369 | - | 2,369 | - | - | -1,172 | - | -1,172 | 1,197
Other financial corporations | 11,421 | 1,631 | - | - | 13,052 | -6 | -2 | - | - | -8 | 13,044
Non-financial corporations | 411 | 397 | - | - | 808 | -3 | -3 | - | - | -6 | 802
Total | 11,832 | 2,028 | 2,369 | - | 16,229 | -9 | -5 | -1,172 | - | -1,186 | 15,043

The year-end total gross carrying amount of finance lease receivables that were initially recognized (purchased) during the
reporting period and not fully derecognized by 31 December 2025 amounts to RON 1,189,014 thousands at Group level
(2024: RON 1,185,846 thousands). The gross carrying amount of finance lease receivables that were held on 1 January 2025
and fully derecognized during the reporting period amounts to RON 266,693 thousands at Group level (2024: RON 26,513
thousands).
Operating leases
Under operating leases, BCR Group lease both real estate and movable property to other parties.
Minimum lease receivable from non-cancellable operating leases, from the view of BCR Group and Bank as lessor, were as
follows:

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
< 1 year | 5,095 | 22,485 | 5,127 | 4,256
1-2 years | 2,163 | 5,615 | 2,036 | 3,563
2-3 years | 1,038 | 1,829 | 1,139 | 1,306
3-4 years | 917 | 521 | 977 | 536
4-5 years | 456 | 134 | 502 | 149
> 5 years | 14 | 163 | 14 | 163
Total | 9,683 | 30,747 | 9,795 | 9,973

Leases where the Group is a lessee
Under IFRS 16, a lessee recognizes a right-of-use asset representing its right to use the underlying asset and a lease liability
representing its obligation to make lease payments.
Lease term is considered as the non-cancellable period for which a lessee has the right to use an underlying asset together
with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option and
periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.
In determining the lease term and assessing the length of the non-cancellable period of a lease, the Bank uses the
contractual terms of the lease. The lease is no longer enforceable when the lessee and the lessor each has the right to
terminate the lease without permission from the other party with no more than an insignificant penalty.
113
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The right-of-use asset is depreciated to the earlier of the end of its useful life or the end of the lease term. The Group uses
the straight-line method of depreciation. The right-of-use assets are presented in the statements of financial position as part
of ‘Property and equipment’ or, if they are subleased to third parties, as part of ‘Investment properties’ and for finance
leases as a ‘Finance lease receivable’.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date. The l ease payments also includes the exercise price under a purchase option and lease payments in an optional
renewal period are considered if the lessee is reasonably certain to exercise the options.
Subsequently, the carrying amount of the lease liability is increased by interest accrued using the applicable discount rate,
reduced by lease payments made and remeasured to reflect any reassessment or lease modification. In the statements of
financial position the lease liabilities are presented in the line item ‘Lease liabilities’.
Undiscounted maturity analysis of lease liability, from the view of the Group and Bank as lessee, were as follows:

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
< 1 month | 10,507 | 10,671 | 10,449 | 10,602
1-3 months | 16,823 | 18,095 | 16,707 | 17,956
3-6 months | 24,986 | 25,878 | 24,839 | 25,670
6-12 months | 44,506 | 43,907 | 44,218 | 43,535
1-5 years | 401,797 | 434,000 | 400,884 | 432,525
> 5 years | 219,336 | 112,041 | 219,336 | 112,041
Total | 717,955 | 644,592 | 716,433 | 642,329

During 2025, interest expenses on lease liabilities were recognised in the amount of RON 20,342 thousand (2024: RON
18,814 thousands) at Group level and RON 19,922 thousand (2024: RON 18,449 thousands) for the Bank. Expenses relating
to leases of low value items for which the recognition exemption is applied and relating to short term leases for which the
recognition exemption is applied were in amount of RON 9,196 thousand (2024: RON 11,984 thousand) at Group level and
RON 8,799 thousand (2024: RON 11,622 thousand) for the Bank.
114
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 9 – Other liabilities and provisions
36. Other liabilities

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Payables related to employee cost | 290,991 | 306,811 | 272,165 | 289,749
Taxes payable other than on income | 130,507 | 56,189 | 129,896 | 55,658
Sundry creditors | 66,236 | 71,799 | 44,461 | 41,369
Deferred income | 96,851 | 87,106 | 96,848 | 87,046
Other liabilities (i) | 7,990 | 397,452 | 3,970 | 1,517
Total | 592,575 | 919,357 | 547,340 | 475,339

(i) Variation on other liabilities related to budgetary obligation of BPL reversed in 2025, in amount of RON 388,919
thousands.
37. Provisions
In the Statements of financial position, provisions are reported under the line item ‘Provisions’. They include mainly credit
risk loss provisions (particularly for financial guarantees and loan commitments) as well as provisions for litigations.
Expenses or income related to provisions for loan commitments and financial guarantees are reported in the statements of
profit or loss under the line item ‘Net impairment loss on financial instruments’.
Expenses or income related to other provisions are reported in the statements of profit or loss under the line item ‘Other
operating result’.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognized as a finance cost.
Contingent liabilities as well as contingent assets are monitored and revalued on a continuous basis in order to ensure that
all subsequent to initial recognition developments have been considered and a provision will be recognized, if the case.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Long-term employee provisions | 90,762 | 70,308 | 89,881 | 69,929
Pending legal issues (i) | 171,546 | 391,903 | 161,436 | 372,972
Loan commitments given (ii) | 206,907 | 300,500 | 205,675 | 298,990
Provisions for commitments given in Stage 1 | 105,647 | 116,849 | 104,853 | 115,085
Provisions for commitments given in Stage 2 | 71,369 | 113,020 | 71,058 | 113,274
Provisions for commitments given - Defaulted | 29,891 | 70,631 | 29,764 | 70,631
Provisions for commitments given in Stage 3 | 29,763 | 70,365 | 29,636 | 70,365
Provisions for commitments given - POCI | 128 | 266 | 128 | 266
Financial Guarantees given | 10,981 | 15,671 | 11,010 | 16,340
Provisions for financial guarantees in Stage 1 | 5,874 | 8,862 | 5,903 | 9,531
Provisions for financial guarantees in Stage 2 | 4,362 | 5,599 | 4,362 | 5,599
Provisions for financial guarantees - Defaulted | 745 | 1,210 | 745 | 1,210
Provisions for financial guarantees in Stage 3 | 745 | 1,210 | 745 | 1,210
Other provisions | 9,852 | 9,931 | 9,505 | 9,931
Restructuring | 337 | - | - | -
Other | 9,515 | 9,931 | 9,505 | 9,931
Provisions | 490,048 | 788,313 | 477,507 | 768,162

(i) The reduction in provisions in pending legal issues is related to favorable ANPC case court ruling. (Further details
are presented in Note 38).
(ii) The reduction in provisions for loan commitments is attributable to the recalibration of risk parameters and credit
ratings, combined with healings and lower undrawn balances on credit facilities.
Long term employee provisions
The Bank’s net obligation in respect of long-term service benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior periods. On the basis of the Collective Labour Agreement, the
Bank has a contractual obligation to make a one-off payment of up to four gross monthly salaries to retiring employees on
the date of retiring. The defined benefit obligations are calculated by a qualified actuary taking into account the estimated
salary at the date of retirement and the number of years served by each individual.
115
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Movement in long term employee provisions

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Opening defined benefit obligation | 70,308 | 72,127 | 69,929 | 72,127
Interest cost | 5,026 | 4,599 | 5,002 | 4,572
Current service cost | 5,755 | 6,295 | 5,690 | 6,173
Past service cost | -4,941 | -5,709 | -4,941 | -6,139
Benefits paid | -2,582 | -1,282 | -2,582 | -1,269
Actuarial (gains)/loss on obligations | 17,503 | -5,314 | 17,089 | -5,179
effect of experience adjustments | 4,057 | 1,149 | 4,005 | 1,195
effect of demographic assumptions | 13,446 | -6,463 | 13,084 | -6,374
Settlements gain | -307 | -408 | -306 | -356
Total | 90,762 | 70,308 | 89,881 | 69,929

The principal assumptions used in determining the defined benefit obligation of the Group’s plan are shown below:

|  |  | 2025 | 2024
|  |  | % | %
Discount rate |  |  | 6.77% | 7.35%
Future salary increases |  |  | 6.00% | 5.00%
Mortality rates |  |  | ROM-Anul2013 | ROM-Anul2013
Disability rates |  |  | ETTL-PAGLER | ETTL-PAGLER

The following table presents a sensitivity analysis for each significant actuarial assumptions showing how the defined
benefit obligation would have been affected by changes in the relevant actuarial assumptions that were reasonably possible
at the balance sheet.

| Group | Bank
Sensitivity analysis | 2025 | 2024 | 2025 | 2024
Sensivity - Discount rate +/- % | 0.50% | 0.50% | 0.50% | 0.50%
Impact on DBO: Discount rate decrease - | 5,709 | 3,891 | 4,828 | 3,512
Impact on DBO: Discount rate increase + | -5,328 | -3,627 | -4,447 | -3,248
Sensivity - Salary increase rate +/- % | 0.50% | 0.50% | 0.50% | 0.50%
Impact on DBO: Salary decrease rate - | -3,618 | -2,954 | -4,499 | -3,333
Impact on DBO: Salary increase rate + | 3,960 | 3,197 | 4,841 | 3,576

The remaining average duration of the defined benefit obligation at the end of the reporting period is 13.92 years (2024:
14.10 years).
The expected service cost for 2025 is RON 5,690 thousands for the Bank (2024: RON 6,173 thousands).
According to the collective labor agreement, employees are entitled to one lump sum payment on the date of normal age
retirement/termination due to disability, of up to 4 gross monthly salaries (the Bank), depending on seniority (their past
period of employment with the Bank). It is also included a lump sum payment in case of death amounting to 3 gross
monthly salaries irrespective of the period of service or for early retirement, a lump sum of up to 6 gross monthly salaries,
depending on the number of years remaining until normal age retirement.
This is a defined benefit plan that defines three independent benefits that an employee is entitled to receive on the date of
normal age retirement/termination due to disability/death, dependent on one or more factors such as age, years of service
and salary.
A full actuarial valuation by a qualified independent actuary is carried out every year.
The plan liability is measured on an actuarial basis using the projected unit credit method. The defined benefit plan
liability is discounted using rates equivalent to the market yields at the balance sheet date of government bonds that are
denominated in the currency in which benefits will be paid and that have a maturity approximating to the terms of the
related liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognized in the statements of changes in equity.
116
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Provisions for allegedly abusive clauses
Starting with the enactment of Government Emergency Ordinance no.50/2010 on loan agreements for private individuals,
as subsequently modified (‘Ordinance 50’), the Bank was involved in consumer litigations with certain financial
implications.
However, clients have continued to take court actions against the Bank on the grounds of Law no.193/2000 on unfair terms
in contracts with consumers, as subsequently modified, that transposes into national law the Directive no. 1993/13/EC on
unfair terms in consumer contracts.
Apart from individual litigations (clients taking court actions against the Bank on the grounds of Law no.193/2000 on
unfair terms in contracts with consumers) - BCR has faced a number of litigations with ANPC (National Authority for
Consumers Protection), having as grounds the interpretations over Law 193/2000 featuring potential cross portfolio
contamination effects. According to the amendments brought to Law 193 in 2013, whenever the National Consumer
Protection Agency or a consumer association asks the court to qualify a clause as abusive, should the judge consider it so,
that clause has to be removed from all the ongoing contracts. Also, in the second half of 2024 BCR challenged in court an
ANPC thematic control report regarding the recalculation of the variable interest rates and fees for loans granted in the
period 2004-2010, which are active or have been closed in the last 6 months prior to the report, including the loans
declared as early maturity or assigned to third parties.
By applying the principles of IAS 37, the Bank has recognized collectively assessed provisions for its probable obligation to
reimburse the customers counterparty in contracts with allegedly abusive clauses similar to those subject to the litigations
opened by ANPC and for the loans falling under the thematic control report’s subject. Taking into consideration that all
cross-portfolio litigations have been closed (the last one as of September 29, 2025, when the dead line for ANPC for filing
an extraordinary appeal expired), remaining ongoing only the challenge against ANPC thematic control report from 2024,
at the end of November 2025, the bank approved (i) the release of RON 301.55 mil of collective provisions for loans with
allegedly abusive cases relating to ANPC cross-portfolio litigations and (ii) the allocation of RON 97.21 mil equivalent of
provision for the loans that fall under the scope of the ANPC's thematic control report, for which the bank's challenge is
on-going. In the first instance, in January 2026, the ruling was favorable to the bank, the decision being subject of appeal
and based only on the form not merits of the case.
The amount of the provision is reviewed semi-annually by the Bank in order to take account of the new court resolutions
for litigations with clients for contracts which contain allegedly abusive clauses (of ANPC type or not) and changes in the
relevant legislation.
According to the approval above mentioned, as of November 2025, the Group recorded provisions for allegedly unfair
terms included in contracts which are not yet subject to an individual litigation, but are falling under the scope of the
ANPC's above mentioned thematic control report, in total amount of RON 97.21 mil equivalent (December 2024: RON
289.91 mil, including the amount of the provisions for the loans in scope of the cross-portfolio cases).
Apart from the above-mentioned provision, the Group established a provision for all pending cases having as object
individual clients claims regarding allegedly abusive clauses.
For individual claims, as of December 2025, the Group has established a provision of RON 20.5 mil (December 2024: RON
20.6 mil).
Starting 2025, the calculation methodology was modified following the thematic control, and the provision is calculated
based on the amount received from ANPC.
For 2024, the provisions were calculated for the portfolios at risk based on expected values, using statistical methods,
separately for active loans, closed loans and loans sold for which the Bank has retained continuing involvement. The key
parameters used are the following: the potential allegedly abusive amount, the show up rate (percentage of clients that
would open litigation) and the loss probability.
117
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Movement in provisions (other than long term employee provisions)

|  |  |  |  |  | 2025 | Group
in RON thousands | Opening balance | Additions, includ. increases in exist. provisions (+) | Amounts used (-) | Unused amounts reversed during the period (-) | Changes in discounted amount | Exchange- rate and other changes (+/-) | Closing Balance
Pending legal issues | 391,903 | 104,459 | - | -325,769 | - | 953 | 171,546
Other provisions | 9,931 | 60,003 | -58,262 | -1,927 | - | 107 | 9,852
Total provisions less long-term employee provisions | 401,834 | 164,462 | -58,262 | -327,696 | - | 1,060 | 181,398

|  |  |  |  |  | 2024 | Group
in RON thousands | Opening balance | Additions, includ. increases in exist. provisions (+) | Amounts used (-) | Unused amounts reversed during the period (-) | Changes in discounted amount | Exchange- rate and other changes (+/-) | Closing Balance
Pending legal issues | 405,858 | 29,680 | - | -43,646 | - | 11 | 391,903
Other provisions | 124,867 | 52,425 | -160,015 | -7,345 | - | -1 | 9,931
Total provisions less long-term employee provisions | 530,725 | 82,105 | -160,015 | -50,991 | - | 10 | 401,834

|  |  |  |  |  | 2025 | Bank
in RON thousands | Opening balance | Additions, includ. increases in exist. provisions (+) | Amounts used (-) | Unused amounts reversed during the period (-) | Changes in discounted amount | Exchange- rate and other changes (+/-) | Closing Balance
Pending legal issues | 372,972 | 104,194 | - | -316,683 | - | 953 | 161,436
Other provisions | 9,931 | 58,693 | -57,299 | -1,927 | - | 107 | 9,505
Total provisions less long-term employee provisions | 382,903 | 162,887 | -57,299 | -318,610 | - | 1,060 | 170,941

|  |  |  |  |  | 2024 | Bank
in RON thousands | Opening balance | Additions, includ. increases in exist. provisions (+) | Amounts used (-) | Unused amounts reversed during the period (-) | Changes in discounted amount | Exchange- rate and other changes (+/-) | Closing Balance
Pending legal issues | 389,543 | 24,609 | - | -41,191 | - | 11 | 372,972
Other provisions | 11,087 | 52,009 | -46,964 | -6,200 | - | -1 | 9,931
Total provisions less long-term employee provisions | 400,630 | 76,618 | -46,964 | -47,391 | - | 10 | 382,903

Loans commitments and financial guarantees
In the ordinary course of business, the Group issues financial guarantees, consisting of letters of credit, guarantees and
acceptances. Financial guarantees are initially recognized in the financial statements at fair value, in ‘Other liabilities’,
being the premium received. Subsequent to initial recognition, the Group financial guarantees are measured at the higher
of the amount of the loss allowance determined as expected credit loss under IFRS 9 and the amount initially recognized
less any cumulative amortization recognized in line with IFRS 15.
Any increase in the liability relating to financial guarantees is taken to the statements of profit or loss and expenses in ‘Net
impairment loss from financial instruments’ and in the statements of financial position in ‘Provisions’. The premium
received is recognized in the statements of other comprehensive income in ‘Net fees and commission income’ on a straight
line basis over the life of the guarantee.
118
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Letters of guarantee which do not meet the definition of a financial guarantee (performance guarantees, advance payment
guarantees, bid guarantees, etc.) are treated as loan commitments under the measurement scope of IFRS 9. Therefore, the
measurement requirements of IFRS 9 for commitment fees that are not integral part of EIR are applied for the premiums
received, recognized in the statements of other comprehensive income in ‘Net fees and commission income’ on time
proportionate basis over the commitment period.
38. Litigations and contingent liabilities
Undrawn loan commitments
Undrawn loan commitments represent contractual commitments to grant loans and revolving credits. Commitments
generally have fixed expiry dates or other termination clauses. Since commitments may expire without being drawn upon,
the total contract amounts do not necessarily represent future cash requirements.
At the same time, the potential credit loss is less than the total unused commitments since most commitments to extend
credit are contingent until the customers maintain specific standards. The Group monitors the maturity of credit
commitments as longer-term commitments generally have a greater degree of credit risk than shorter-term commitments.
In the case of irrevocable commitments, the Bank undertakes to make available to the client, at any time during the
contract period, the amount mentioned in the contract.
Legal claims
As of 31 December 2025, the Bank was involved in the normal course of its business in a number of 1,756 litigations as
defendant (31 December 2024: 1,627).
In the opinion of management, after taking appropriate legal advice, the outcome of these legal claims will not give rise to
any significant loss beyond the amount provided at 31 December 2025.
Settlement of the litigations between BCR Banca pentru Locuinte (BCR BpL) and Ministry of Development
In 2015, the Romanian Court of Accounts (hereinafter referred to as “the CoA”) conducted a control mission at BCR BPL
on the subject of allocated state premium. Following this control mission, CoA issued the Decision no. 17 on 10 December
2015 (“Decision 17”) which has been contested by BCR BpL, but the bank lost the case at High Court of Justice on 21st of
June 2019.
On 21 January 2022, BCR BpL paid to the Ministry of Development the undue state premium considered by CoA as
damage in amount of RON 432,699 thousand. As such, BCR BpL has fully implemented the measures imposed by CoA
Decision no.17, as maintained by HCCJ Decision of 21 June 2019.
Following the payment on 21 January 2022 of the principal obligation and based on the special provisions of Government
Emergency Ordinance no. 69/2020 on several fiscal measures, extension of certain deadlines, introduction of certain tax
incentives and amendment of certain regulatory acts ("OUG no. 69/2020"), BCR BpL has also initiated legal actions to
benefit from the cancellation of accessory budgetary obligations (i.e. interest and penalties accrued to the principal
obligation for the period elapsed between date when the state premiums were cashed in and the date when BCR BpL
reimbursed the state premium to MoD). Due to the refusal of MoD and the fact that the MoD has requested the payment of
the accessories, the bank initiated the legal actions against the MoD.
On 5 December 2022, MoD communicated to BCR BpL a distinct decision to pay the accessory obligations, which were set
in the amount of RON 388,919 thousand. According to the MoD Ancillary Decision, BCR BpL had the obligation to pay this
amount within 30 days of receipt of the MoD Decision, i.e. by 5 January 2023. Failure to pay the amount within the
deadline being likely to lead to the initiation of enforcement by ANAF - General Division for the Administration of Large
Taxpayers.
Therefore, the value of the tax obligation, communicated through MoD Ancillary Decision in the amount of RON 388,919
thousand was reflected in the 2022 financial statements of BCR BpL as a definite liability.
Considering the refusal of MoD to grant amnesty on the basis of GEO 69/2020 as unjustified, BCR BpL took all legal action
to obtain the amnesty / cancellation of the accessories, and also to obtain the annulment of MoD Ancillary Decision.
In the main litigation, the court ordered MoD to review and to settle the amnesty application on the merits, decision which
became final on 18 April 2024 when HCCJ rejected MoD recourse. BCR BpL finally won both cases, obtaining in 2025 also
the annulment of MoD Ancillary Decision.
119
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Following the favorable HCCJ ruling and a subsequent review of BCR BpL’s amnesty application, MoD has issued the
amnesty decision, received by BpL at the end of September 2024.
Subsequently, as of the end of September 2025 there were no longer any reasons for maintaining the liability for penalties
amounting to RON 388.9 million. Therefore, the derecognition of the above-mentioned liability against other operating
income has been approved, with the application of the 2% supplementary tax on turnover due by credit institution.
BFP Litigation
On 23 December 2016, the BFP has received a request filed by City Hall Bucharest to International Court of Arbitration of
the International Chamber of Commerce, consisting of amounts due under the joint venture contract for the period from
2001 to 2013.
In November 2019, the International Court of Arbitration rejected the request submitted by the City Hall. Following this
decision, the claimant initiated an action for annulment, which was subsequently dismissed on October 12, 2020. The
amount claimed is EUR 30.24 million (RON equivalent 151.2 million). Against this ruling, the claimant lodged a second
appeal. The High Court of Justice has suspended the proceedings pending the final decision of the Constitutional Court
regarding an exception of unconstitutionality raised by the City Hall.
Up to the date of publishing these financial statements, there were no other significant updates for the year ended -
December 2025.
Case corporate client vs. BCR
The plaintiff is a former guarantor for a corporate loan granted by BCR. After insolvency proceedings were initiated, BCR
was registered as a creditor with the right to recover the full loan amount of EUR 15.5 million. The plaintiff’s mortgaged
and unmortgaged assets were sold, and the proceeds were distributed to creditors, including BCR. Subsequently, the
plaintiff’s main shareholder obtained a court decision annulling a suretyship clause inserted in the mortgage contract.
As a consequence, the plaintiff and its main shareholder filed several court actions, seeking to reverse the measures already
taken in the insolvency proceedings. In three of the initiated disputes, it requested that the bank be ordered to pay certain
amounts:
(i) In one case, it requested that the Bank be ordered to pay EUR 33.7 million in damages (RON equivalent 167.2 million),
claiming in essence that, based on the suretyship clause later annulled by the court, BCR had significantly influenced its
insolvency proceedings. The request was dismissed in first instance, as unfounded. On February 4, 2026, the Court of
Appeal rejected the plaintiff’s appeal, upheld BCR’s appeal and rejected the plaintiff’s request as time bared. The solution is
not final.
(ii) In another file, as a consequence of the annulment of the suretyship clause, it requested the bank together with the
assignees of the bank’s claim and the borrower to be obliged to reimburse the amount of RON 24.5 million. The request
was rejected as inadmissible. The solution became final on January 27, 2026.
In December 2023, a provision in amount of RON 24.5 million has been established by BCR for these disputes. As of 31
December 2025, there have been no changes in this respect.
(iii) In a third file, received in December 2025, the claimant seeks the cancellation of the distribution, in its insolvency
procedure, of the amount of RON 24.5 million to the assignee of the bank's claim and the repayment of these amount. The
file is pending before the first court.
In what concern the other files in which the plaintiff or its main shareholder are seeking, in essence, to reverse the
measures already taken in the insolvency proceedings ’, two files regarding the partial annulment of the assignments
contracts were definitively resolved in favor of the bank and the other litigations are suspended or pending in different
procedural stages.
Tax related litigation
Transfer Pricing and related withholding tax
The litigations initiated by the Bank following the results of the tax audit for the period 2012 -2015 are still on going, no
decision being rendered on the merits, neither in the national suits nor in the EUAC proceedings.
Impairment of shares held in subsidiaries
During the 2017 tax audit, the Bank requested the deductibility of expenses arising from the impairment of investments in
subsidiaries recorded between 2012 and 2015, in line with the tax legislation applicable to those periods. The tax authorities
rejected this position, concluding that such impairment-related expenses were not deductible.
In 2017, the Bank contested the tax authorities’ decision in court, and the litigation remains ongoing as of December 2025.
Based on the assessment of external legal counsel and the analyses available, Management considers that a favorable
outcome is more likely than not.
120
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 10 – Capital instruments, equity and reserves
39. Total equity
The statutory share capital of the Bank as at 31 December 2025 is represented by 16,253,416,254 ordinary shares (equal
voting rights) of RON 0.10 each (31 December 2024: 16,253,416,254 ordinary shares of RON 0.10 each). The shareholders of
the Bank are as follows:

| 2025 | 2024
| Number of shares | Percentage holding (%) | Number of shares | Percentage holding (%)
Erste Group Bank AG | 16,235,800,479 | 99.891618% | 16,235,553,342 | 99.890097%
SC Actinvest SA | 226,802 | 0.001395% | 226,802 | 0.001395%
FDI Certinvest Dinamic | 13,699 | 0.000084% | 13,699 | 0.000084%
BCR Leasing SA | 109 | 0.000001% | 109 | 0.000001%
Individuals | 17,375,165 | 0.106902% | 17,622,302 | 0.108422%
Total | 16,253,416,254 | 100.00% | 16,253,416,254 | 100.00%

The effect of hyperinflation on the share capital of the Bank is presented below:

in RON thousands |  |  | 2025 | 2024
Share capital before the effect of hyperinflation |  |  | 1,625,342 | 1,625,342
IAS 29 hyperinflation adjustment recorded in prior years (i.e. until 31 December 2003) |  |  | 1,327,223 | 1,327,223
Share capital |  |  | 2,952,565 | 2,952,565

Additional equity instruments
BCR issued Additional Tier 1 notes (AT1 bonds) in September 2022, with a volume of EUR 150 mil and in January 2025 a
new series of AT1 bonds were issued, with a volume of EUR 350 million (RON 1,740,480 thousands). AT1 bonds are
unsecured and subordinated bonds, they are perpetual and can be cancelled only by the issuer at predetermined dates. AT1
bonds include discretionary non-cumulative coupon payments, which allows them to be classified as equity under IFRS.
The AT1 balance for 2025 RON 2,482,035 thousands (2024: RON 741,555 thousands).
If common equity tier 1 ratio of BCR Group or BCR falls below 7.00% (i.e. a trigger event occurs) the principal amount will
be written down on a temporary basis. The issuer may, at its sole discretion, write up the amount (fully or partially)
provided a positive profit has been recorded and the trigger event no longer exists.
Other reserve
The legal reserves require the transfer in a reserve fund of 5% of the net profit of the Bank up to minimum 20% of the
Bank’s share capital. As of 31.12.2025, the legal reserve was in amount of RON 569,355 thousands.
The reserve representing the fund for the general banking risks was allocated from the pre-tax accounting profit of the
Bank starting with financial year 2004 until the end of financial year 2006 calculated as 1% of the banking risk assets. As of
31.12.2025, the general banking risk reserve was in amount of RON 267,673 thousands.
The general reserve for credit risk was allocated from the pre-tax accounting profit of the Bank until the end of financial
year 2004 until it reached the level 2% from the balance of the loans granted. As of 31.12.2025, the general reserve for credit
risk was in amount of RON 162,935 thousands.
Other reserves are in amount of RON 404,534 thousands. In the statements of financial position, the share premiums are
presented in the line ‘Other reserves’ together with the above reserves.
121
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 11 – Scope of consolidation
40. Subsidiaries
All entities directly or indirectly controlled by Banca Comercială Română SA are consolidated in the Group financial
statements on the basis of their annual accounts as of year-end. The financial statements of the subsidiaries are prepared
for the same reporting year as for the Bank, using consistent accounting policies.
The Bank measures investments in subsidiaries at cost.
All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions
are eliminated in full as well as unrealized gains and losses and dividends are eliminated. Subsidiaries are fully
consolidated from the date on which control is transferred to the Bank until the date when control is lost. Control is
achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the
ability to affect those returns through its power to direct the relevant activities of the investee.
Relevant activities are those which most significantly affect the variable returns of an entity.
The Bank has the following entities consolidated in the financial statements of the Group as at 31 December 2025:

Company's name | Country of incorporation | Nature of the business | Shareholding | Gross Book Value | Net Book Value | Impairment
2025 | 2024
BCR Leasing IFN SA | Romania | Financial leasing | 99.97% | 99.97% | 389,491 | 389,491 | -
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA | Romania | Pension Fund | 99.99% | 99.99% | 229,484 | 198,125 | 31,359
BCR Banca pentru Locuinte SA | Romania | Banking | 99.99% | 99.99% | 948,578 | 335,800 | 612,778
Suport Colect SRL | Romania | Workout | 72.87% | 99.99% | 983,047 | - | 983,047
BCR Payments Services SRL | Romania | Payments transactions | 99.99% | 99.99% | 1,900 | 1,900 | -
BCR Fleet Management SRL (i) | Romania | Operational leasing | - | 99.97% | - | - | -
Total |  |  |  |  | 2,552,500 | 925,316 | 1,627,184

(i) During 2025 BCR Fleet Management was merged in Suport Colect SRL, after that BCR Fleet Management SRL
being deregistered.
Impairment of subsidiaries
The Bank reviews its holdings in subsidiaries at each reporting date and whenever a trigger of impairment has appeared, in
order to assess whether there is objective evidence that the investment in the subsidiary is impaired. If there is such
evidence, the Bank calculates the amount of impairment as the difference between the recoverable amount of the
subsidiary and its carrying value (higher of fair value less costs to sell and value in use), then, recognizes the loss under
Other Operating Result in the statements of profit or loss.
Based on business specifics, specific valuation methods are applied for each subsidiary, such as Dividend Discount Model,
Discounted Cash Flows model. The calculation of Fair Value and Value in Use for subsidiaries is most sensitive to discount
rates and financial projections (budgets) used.
The movement in Subsidiaries’ net book value is presented below:

|  | Bank
in RON thousands |  |
Balance as of 01.01.2024 |  | 588,105
Net impairment of subsidiaries |  | 25,266
Balance as of 31.12.2024 |  | 613,371
Balance as of 01.01.2025 |  | 613,371
Net impairment of subsidiaries |  | 352,282
Capital repayment |  | -40,337
Balance as of 31.12.2025 |  | 925,316

At 31 December 2025, the release of impairment for investments in subsidiaries was in amount of RON 335,800 thousand
for BCR Banca pentru Locuinte SA and RON 16,481 thousand for BCR Pensii.
122
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The release of impairment for BCR Pensii is due mainly to increase of future estimated profits, due both to the increase in
volume of managed assets, and especially to the increase in commission percentages charged as a result of the
improvement in the ratio between investment performance and inflation, thus a higher recoverable amount is obtained
using compared to last year estimation.
The existing impairment booked at the Bank level for Subsidiaries is presented below:

in RON thousands | 2025 | 2024
Suport Colect SRL | -983,047 | -983,047
BCR Banca pentru Locuinte SA | -612,778 | -948,578
BCR Fond de Pensii | -31,359 | -47,841
Total | -1,627,184 | -1,979,466

The recoverable amount of the subsidiaries has been determined as the higher of fair value (FV) less costs of sale and value
in use (ViU), generally using long term financial projections. In accordance with IAS 36 par 50, the ViU was calculated on a
pre-tax basis (before corporate taxes).
Based on current business specifics, simplified income approach method was applied.
The calculation of FV and ViU for subsidiaries is most sensitive to discount rates and financial projections (budgets) used
and zero growth rate considered.
Discount rates
The discount rates used were determined based on specific parameters (e.g. risk free rate, market risk premium, country
risk premium, BETA rates, inflation spread) estimated for commercial banking industry and other financial services based
on industry research.
The projected inflation rates are based on published industry research (median values of three sources of research).

Cost of equity (CoE) / Weighted average cost of capital (WACC) | Value in use 2025 | Value in use 2024
Local subsidiaries - Other financial corporation | 12.97% | 13.18%
Local subsidiaries - Credit institutions | 12.54% | n/a

Financial Projections
The financial projections are based on financial budgets, covering a five–year period.
For companies operating in a tight regulatory environment regarding capital adequacy (i.e. banks and leasing companies),
the distributions resulting from the financial projections were adjusted in order to take into account the maximum capital
distributions allowed in order to keep the targeted solvency position.
Sensitivity to changes in assumptions at Bank’s level for all subsidiaries

in RON thousands | 2025 | 2024
Impact in the Statements of Comprehensive Income: income/ (expense) |  |
Cost of equity/ Weighted average cost of capital increases by 10% | -59,351 | -53,453
Cost of equity/ Weighted average cost of capital decreases by 10% | 71,461 | 64,897
Net cash-flows increase by 10% | 98,284 | 61,283
Net cash flows decrease by 10% | -98,284 | -61,283

123
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

BCR Banca pentru Locuinte
In accordance with IAS 1 “Presentation of financial statements”, paragraph 25, when preparing financial statements,
management should perform an assessment of an entity’s ability to continue as a going concern.
As of 31 December 2025, the management of BCR BpL assessed that the going concern assumption remains not
appropriate, considering all available information about the future, which is at least, but is not limited to, twelve months
from the end of the reporting period.
As a result of this assessment the management concluded that the financial statements as of 31 December 2025 should be
prepared under the non-going concern assumption due to the following events and reasons that have an irreversible impact
on the Bank’s activity:
BCR BpL was determined to make the decision, based on the 2015 Court of Accounts report, and subsequently on the 2019
ICCJ decision, to suspend the sale of savings-lending contracts starting in March 2016, and stop granting "Fix pentru Casa,"
"Intermediar," and "Anticipat" loans starting September 2019.
BCR BpL has completed the legal proceedings (based on the special provisions of Government Emergency Ordinance No.
69/2020 on certain fiscal measures, the extension of certain deadlines, the establishment of certain tax facilities, and the
amendment of certain normative acts ("GEO No. 69/2020"), with the court ruling in favor of BCR BpL in the litigation
against the Ministry of Development. The completion of the legal proceedings is presented in the Financial Statements in
Note 38 Litigation and contingent liabilities.
The downward trend in customers’ Deposits is irreversible, from RON 88,599 thousand, as of 31 December 2024 to RON
34,592 thousand, as of 31 December 2025, this decline being explained by the fact that BCR BpL has not signed new saving-
credit contracts since 2016, the minimum saving period of 5 years for the saving deposits has already passed and the saving-
credit contracts remaining in the portfolio continues to close at clients' initiative or due non-compliance with existing
terms and conditions. The 2026 budget and 2027-2028 forecast are structured on a declining trend, so that in 2026 the
saving deposits portfolio will be depleted, the clients having a period of maximum 2 years timeframe for justifying the state
premium received from the state; prudential indicators such as own funds, solvency ratio and liquidity ratio calculated as of
31 December 2025, as well as the budgeted ones for 2026 indicates full compliance with regulatory thresholds imposed by
the NBR.
BCR BpL has therefore founded its non-going concern assessment for the preparation of the financial statements as of 31
December 2025 on the significantly limitation of the operations, significant downward trend of the deposits’ portfolio,
which will continue until 2026.
Net assets of the company as of 31st December 2025 is RON 466,774 thousand (2024: RON 73,134 thousand).
Suport Colect SRL
By end of 2025, Suport Colect SRL merged by absorption with BCR Fleet Management SRL, acting as absorbing entity. The
Management has evaluated the overall situation of the company and concluded that it is appropriate to maintain the same
approach as in the previous years and to prepare its financial statements for 2025 on a non-going concern basis.
The main arguments taken into consideration are as follows:
• the entity has no new business for some time and has no intention to acquire any, moreover no new business will be
generated following the merger, the only activity relates to receivables acquired in the past and monetising of the fixed
assets stock (i.e., “cease trading” condition in IAS 10.14 is fulfilled);
• there is an obvious intention of the management to liquidate the company in the future proved by the approved
budgets which no longer considered the company from 2027 onwards (IAS 1.25).
Net asset of the company as of 31st December 2025 is RON 68,048 thousands (2024: RON 42,482 thousands).
41. Investments in joint ventures and associates
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, an
interest in an associate or joint venture is recognised on the consolidated balance sheet at cost plus post-acquisition
changes in the Group’s share of the net assets of the entity. The Group’s share of the associate’s or joint venture’s result is
recognised in the consolidated statements of profit or loss in line item Net result from equity method investments. The line
item contains the result from associates and joint ventures recorded by applying the equity method (measured as the
investor’s share of profit or loss in the associates and joint ventures). However, impairment losses, reversal of impairment
124
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

losses and realized gains and losses on investments in associates or joint ventures accounted for using the equity method
are reported under the line item ‘Other operating result’.
In the case of BCR Group, all equity method investments are direct or indirect investments in associates and joint ventures
over which the Group exercises significant influence or joint control stemming from voting power greater than 20% up to
50%.
The Bank has a 49% interest in BCR Social Finance IFN SA whose main role is to provide loans to customers, acquired in
2019. On 30 September 2020, the Bank entered with other investors into a transaction involving the share capital increase
of CIT One S.R.L. (‘CIT One’), pursuant to which the other investors become shareholders in CIT One, with equal
shareholding of 33.33%, maintaining the same activity, cash processing and transportation.
The Bank’s interest in these two companies is accounted for using the equity method in the consolidated financial
statements. There is no quoted market price for these investments.
The below table presents the book value at Group level of investment in associates and joint ventures.

| Group
in RON thousands | 2025 | 2024
Other financial corporations | 15,874 | 13,307
Non-financial corporations | 18,725 | 25,531
Total | 34,599 | 38,838

The table below shows the aggregated financial information of entities measured at equity method:

| BCR Social Finance IFN | CIT One
in RON thousands | 2025 | 2024 | 2025 | 2024
Total assets | 387,662 | 280,758 | 191,255 | 155,287
Total liabilities | 355,266 | 253,601 | 135,083 | 78,694
Total equity | 32,396 | 27,157 | 56,172 | 76,593
Proportional of the Group's ownership | 49.00% | 49.00% | 33.33% | 33.33%
Carrying amount of the investment | 15,874 | 13,307 | 18,725 | 25,531
in RON thousands |  |  |  |
Income | 67,474 | 50,568 | 336,072 | 317,473
Expenses | -61,227 | -45,021 | -350,871 | -291,557
Profit before tax | 6,247 | 5,547 | -14,799 | 25,916
Income tax expenses | -1,009 | -809 | -5,622 | -6,387
Profit/loss | 5,238 | 4,738 | -20,421 | 19,529
Proportional of the Group's ownership | 49.00% | 49.00% | 33.33% | 33.33%
Carrying amount of the investment | 2,567 | 2,322 | -6,806 | 6,509

125
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Chapter 12 – Other disclosure matters
42. Segment reporting
BCR Group segment reporting is based on IFRS 8 Operating Segments, which adopts the management approach.
Accordingly, segment information is prepared based on internal management reporting that is regularly reviewed by the
chief operating decision maker to assess the performance of the segments and make decisions regarding the allocation of
resources. Within BCR Group the function of the chief operating decision maker is exercised by the Management Board.
Business segmentation
BCR Group segment reporting comprises four Group operating segments reflecting BCR Group’s management structure.
Retail. The Retail segment comprises the business activities which are in the responsibility of account managers in the
Retail network. Targeted customers are mainly privates, micros, and free professionals. This business is mainly operated by
BCR parent bank in cooperation with its subsidiaries such as Leasing, Asset Management with the focus on simple
products ranged from loans, investment products, current accounts, savings products, to credit cards and cross selling
products such as leasing, insurance, building society products.
Corporates. The Corporates segment comprises business done with corporate customers of different turnover size (small
and medium-sized enterprises and Large Corporate customers) as well as commercial real estate and public sector
business.
Group Markets. The Group Markets (GM) segment comprises trading and markets services as well as customer business
with financial institutions. It includes all activities related to the trading books of BCR Group, including the execution of
trade, market making and short-term liquidity management. In addition, it comprises business connected with servicing
financial institutions as clients.
Asset/Liability Management & Corporate Centre. The Asset/Liability Management & Corporate Centre (ALM & CC)
segment includes all asset/liability management functions – as well as the corporate center which comprises all non-core
banking business, intragroup eliminations within BCR partial group, dividends, refinancing costs of participations, all non-
banking balance sheet positions which cannot be allocated to other business segments as well as the profit and loss
positions resulting from these balance sheet items. Apart from that the Corporate Centre includes the reconciliations to the
accounting result. This segment comprises also free capital which is defined as the difference of the total average IFRS
equity and the average economical equity allocated to all operating segments.
Measurement
The profit and loss statements of the BCR Segment report is based on the measures reported to the Management Board for
the purpose of allocating resources to the segments and assessing their performance.
Capital consumption per segment is regularly reviewed by the management of BCR Group to assess the performance of the
segments. The average allocated capital is determined by the credit risk, market risk, operational risk, and business
strategic risk.
According to the regular internal reporting to Management Board, total assets, and total liabilities as well as risk weighted
assets and allocated capital are disclosed per segment.
For measuring and assessing the profitability of segments within BCR Group, such key measures as return on allocated
capital and cost/income ratio are used.
126
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Return on allocated capital is defined as net result for the period before minorities in relation to the average allocated
capital of the respective segment. Cost/income ratio is defined as operating expenses (general administrative expenses) in
relation to operating income (total of net interest income, net fee and commission income, dividend income, net trading
result, gains/losses from financial instruments measured at fair value through profit or loss, net result from equity method
investments, rental income from investment properties and other operating lease).
In order to split the Group results on business lines the following subsidiaries are allocated entirely on Retail segment: BCR
Pensii SAFPP, Banca pentru Locuinte, Suport Colect and some of the consolidation adjustments; starting 2023, BCR
Leasing is allocated on business segments in accordance with clients’ profit centres (Corporate segments account around
70% while retail segment 30%). Intragroup eliminations and the rest of the consolidation adjustments are allocated on Local
Corporate Centre. In 2025, the Group decided to change the presentation for leasing portfolio, by splitting between retail
and corporate segments; 2024 information was aligned with this presentation in order to enhance comparability.

|  |  |  |  | 2025
in RON thousands | Group | Retail | Corporates | ALM & Local Corporate Center | GM
Net interest income | 4,746,338 | 2,194,202 | 1,226,742 | 1,170,616 | 154,778
Net fee and commission income | 1,214,169 | 815,525 | 342,899 | -13,656 | 69,401
Dividend income | 6,581 | 3,974 | - | 2,607 | -
Net trading result | 544,422 | 221,649 | 158,540 | 43,316 | 120,917
Gains/(losses) from non-trading financial instruments mandatorily measured at fair value through profit or loss | 19,736 | 9,701 | - | 10,035 | -
Foreign currency translation | -8,723 | - | - | -8,723 | -
Net result from equity method investments | -4,240 | - | - | -4,240 | -
Rental income from investment properties and other operating leases | 14,237 | 9,378 | 292 | 4,567 | -
General administrative expenses | -2,395,484 | -1,830,792 | -478,239 | -31,704 | -54,749
Gains/(losses) from derecognition of financial assets measured at amortized cost | - | - | - | - | -
Other gains/(losses) from derecognition of financial instruments not measured at fair value through profit or loss | -1,307 | - | - | -1,307 | -
Gains/losses from reclassification from amortized cost to fair value through profit or loss |  | - | - | - | -
Net impairment gain/ (losses) on financial instruments | -252,408 | 327 | -243,030 | -4,561 | -5,144
Other operating result | 60,533 | 422,414 | -136,404 | -214,930 | -10,547
Pre-tax result from continuing operations | 3,943,854 | 1,846,378 | 870,800 | 952,020 | 274,656
Net profit of the year | 3,943,854 | 1,846,378 | 870,800 | 952,020 | 274,656
Taxes on income | -623,763 | -233,622 | -139,328 | -206,868 | -43,945
Net result for the year | 3,320,091 | 1,612,756 | 731,472 | 745,152 | 230,711
Net result attributable to non-controlling interests | 20 | - | - | 20 | -
Net result attributable to owners of the parent | 3,320,071 | 1,612,756 | 731,472 | 745,132 | 230,711
Operating Income | 6,532,520 | 3,254,428 | 1,728,473 | 1,204,523 | 345,096
Operating Expense | -2,395,484 | -1,830,792 | -478,239 | -31,704 | -54,749
Operating Result | 4,137,036 | 1,423,636 | 1,250,234 | 1,172,819 | 290,347
Cost Income Ratio | 36.67% | 56.26% | 27.67% | 2.63% | 15.86%

* All intercompany eliminations are included in the Local Corporate Centre
127
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | 2024
in RON thousands | Group | Retail | Corporates | ALM & Local Corporate Center | GM
Net interest income | 4,400,976 | 2,075,816 | 1,274,190 | 970,000 | 80,969
Net fee and commission income | 1,128,180 | 780,410 | 302,134 | -13,085 | 58,722
Dividend income | 6,192 | 3,889 | - | 2,303 | -
Net trading result | 483,295 | 185,628 | 140,983 | 11,094 | 145,591
Gains/(losses) from non-trading financial instruments mandatorily measured at fair value through profit or loss | 24,723 | 7,482 | - | 17,241 | -
Foreign currency translation | 8,991 | - | - | 8,991 | -
Net result from equity method investments | 8,831 | - | - | 8,831 | -
Rental income from investment properties and other operating leases | 34,543 | - | 28,925 | 5,618 | -
General administrative expenses | -2,270,848 | - | -3,170 | -23,711 | -
Gains/(losses) from derecognition of financial assets measured at amortized cost | -26,881 | - | -3,170 | -23,711 | -
Other gains/(losses) from derecognition of financial instruments not measured at fair value through profit or loss | -4,127 | - | - | -4,127 | -
Net impairment gain/ (losses) on financial instruments | -106,342 | -128,808 | 1,435 | 11,690 | 9,341
Other operating result | -400,038 | -96,837 | -108,026 | -189,535 | -5,640
Pre-tax result from continuing operations | 3,287,495 | 1,073,585 | 1,200,477 | 771,227 | 242,206
Net profit of the year | 3,287,495 | 1,073,585 | 1,200,477 | 771,227 | 242,206
Taxes on income | -520,072 | -171,424 | -193,236 | -116,659 | -38,753
Net result for the year | 2,767,423 | 902,161 | 1,007,241 | 654,568 | 203,453
Net result attributable to non-controlling interests | 7 | - | - | 7 | -
Net result attributable to owners of the parent | 2,767,416 | 902,161 | 1,007,241 | 654,561 | 203,453
Operating Income | 6,095,731 | 3,053,225 | 1,746,232 | 1,010,993 | 285,282
Operating Expense | -2,270,848 | -1,753,995 | -435,993 | -34,084 | -46,777
Operating Result | 3,824,883 | 1,299,230 | 1,310,238 | 976,909 | 238,505
Cost Income Ratio | 37.25% | 57.45% | 24.97% | 3.37% | 16.40%

* All intercompany eliminations are included in the Local Corporate Centre
128
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | 2025
in RON thousands | Group | Retail | Corporates | ALM & Local Corporate Center | GM
Assets |  |  |  |  |
Cash and cash equivalents | 11,440,918 | 3,816,662 | - | 7,624,256 | -
Financial assets held for trading | 3,329,764 | - | - | 1,646 | 3,328,118
Derivative financial instruments held for trading | 102,599 | - | - | 1,646 | 100,953
Debt securities held for trading | 3,227,165 | - | - | - | 3,227,165
Non-trading financial assets mandatorily at fair value through profit or loss | 97,614 | 42,084 | - | 55,530 | -
Equity instruments | 92,124 | 42,084 | - | 50,040 | -
Debt securities | 5,490 | - | - | 5,490 | -
Financial assets at fair value through other comprehensive income | 13,290,491 | - | - | 13,290,491 | -
Debt securities | 13,290,491 | - | - | 13,290,491 | -
Financial assets at amortized cost | 98,155,165 | 37,235,066 | 28,659,887 | 27,291,825 | 4,968,387
Debt securities | 23,248,722 | 133,477 | 72,683 | 23,042,562 | -
Loans and advances to banks | 5,572,108 | 622,817 | - | 4,164,643 | 784,648
Loans and advances to customers | 69,334,335 | 36,478,772 | 28,587,204 | 84,620 | 4,183,739
Finance lease receivables | 2,678,181 | 632,395 | 2,035,683 | 10,103 | -
Property and equipment | 1,135,557 | 11,452 | - | 1,124,105 | -
Investment property | 15,343 | - | - | 15,343 | -
Intangible assets | 551,266 | 5,854 | - | 545,412 | -
Investments in joint ventures and associates | 34,599 | - | - | 34,599 | -
Current tax assets | 1,068 | 993 | - | 75 | -
Deferred tax assets | 2,445 | 343 | - | 2,102 | -
Assets held for sale and disposal group | 15,204 | - | - | 15,204 | -
Trade and other receivables | 943,541 | 19,711 | 551,026 | 92,067 | 280,737
Other assets | 213,191 | 66,684 | 367 | 125,087 | 21,053
Total assets | 131,904,347 | 41,831,243 | 31,246,964 | 50,227,845 | 8,598,295
Liabilities and Equity |  |  |  |  |
Financial liabilities held for trading | 165,342 | - | - | 6,631 | 158,711
Derivative financial instruments held for trading | 165,342 | - | - | 6,631 | 158,711
Financial liabilities measured at amortized cost | 112,153,887 | 57,851,115 | 37,948,990 | 11,454,317 | 4,899,465
Deposits from banks | 2,740,235 | 1,567,188 | 3,509,654 | -4,102,342 | 1,765,735
Borrowings and financing lines | 439,197 | - | - | 439,197 | -
Deposits from customers | 93,084,106 | 55,823,909 | 34,361,670 | 26,650 | 2,871,877
Debt securities issued | 14,246,361 | - | - | 14,246,361 | -
Other financial liabilities | 1,643,988 | 460,017 | 77,665 | 844,453 | 261,853
Lease liabilities | 591,782 | - | - | 591,782 | -
Provisions | 490,048 | 161,574 | 208,408 | 118,736 | 1,330
Current tax liabilities | 58,994 | 3,564 | - | 55,430 | -
Deferred tax liabilities | 22,130 | - | - | 22,130 | -
Other liabilities | 592,575 | 16,998 | 63,893 | 508,468 | 3,216
Total equity | 17,829,589 | 3,595,488 | 3,068,477 | 10,819,427 | 346,197
Total liabilities and equity | 131,904,347 | 61,628,738 | 41,289,767 | 23,576,923 | 5,408,919

* All intercompany eliminations are included in the Local Corporate Centre
129
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | 2024
in RON thousands | Group | Retail | Corporates | ALM & Local Corporate Center | GM
Assets |  |  |  |  |
Cash and cash equivalents | 10,642,241 | 3,166,089 | 16,520 | 7,259,698 | 199,934
Financial assets held for trading | 1,912,779 | - | - | 57,910 | 1,854,869
Derivative financial instruments held for trading | 187,806 | - | - | 57,910 | 129,896
Debt securities held for trading | 1,724,973 | - | - | - | 1,724,973
Non-trading financial assets mandatorily at fair value through profit or loss | 87,862 | 30,964 | - | 56,898 | -
Equity instruments | 75,345 | 30,964 | - | 44,381 | -
Debt securities | 12,517 | - | - | 12,517 | -
Financial assets at fair value through other comprehensive income | 12,767,715 | - | - | 12,767,715 | -
Debt securities | 12,767,715 | - | - | 12,767,715 | -
Financial assets at amortized cost | 90,038,137 | 33,343,608 | 26,972,339 | 24,324,095 | 5,398,096
Debt securities | 20,623,315 | 126,262 | 111,420 | 20,385,633 | -
Loans and advances to banks | 6,004,729 | 649,451 | - | 3,833,969 | 1,521,309
Loans and advances to customers | 63,410,093 | 32,567,894 | 26,860,919 | 104,493 | 3,876,787
Finance lease receivables | 2,321,385 | 506,041 | 1,867,333 | -51,989 | -
Property and equipment | 1,029,795 | 6,649 | 88,314 | 934,832 | -
Investment property | 112,198 | - | - | 112,198 | -
Intangible assets | 496,946 | 5,564 | - | 491,382 | -
Investments in joint ventures and associates | 38,838 | - | - | 38,838 | -
Current tax assets | 139 | - | 139 | - | -
Deferred tax assets | 92,230 | 435 | - | 91,795 | -
Assets held for sale and disposal group | 729 | - | - | 729 | -
Trade and other receivables | 1,002,936 | 16,859 | 473,352 | 327,695 | 185,030
Other assets | 261,005 | 67,784 | 5,024 | 188,123 | 74
Total assets | 120,804,935 | 37,143,994 | 29,423,021 | 46,599,919 | 7,638,002
Liabilities and Equity |  |  |  |  |
Financial liabilities held for trading | 133,740 | - | - | 6,071 | 127,669
Derivative financial instruments held for trading | 133,740 | - | - | 6,071 | 127,669
Financial liabilities measured at amortized cost | 104,405,296 | 55,508,058 | 38,422,625 | 7,502,627 | 2,971,986
Deposits from banks | 1,174,726 | 1,343,435 | 3,377,040 | -4,261,488 | 715,739
Borrowings and financing lines | 533,268 | - | - | 533,268 | -
Deposits from customers | 91,007,840 | 53,973,592 | 34,950,925 | -57,535 | 2,140,859
Debt securities issued | 10,407,030 | - | - | 10,407,030 | -
Other financial liabilities | 1,282,432 | 191,032 | 94,661 | 881,351 | 115,389
Lease liabilities | 500,390 | - | - | 500,390 | -
Provisions | 788,313 | 371,946 | 303,943 | 108,795 | 3,629
Current tax liabilities | 42,508 | 2,803 | - | 39,705 | -
Deferred tax liabilities | 25,177 | - | - | 25,177 | -
Other liabilities | 919,357 | 403,937 | 51,455 | 459,916 | 4,049
Total equity | 13,990,154 | 3,290,902 | 3,426,100 | 6,921,957 | 351,195
Total liabilities and equity | 120,804,935 | 59,577,646 | 42,204,123 | 15,564,638 | 3,458,528

130
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | 2025
in RON thousands | Bank | Retail | Corporates | ALM & Local Corporate Center | GM
Net interest income | 4,549,187 | 2,102,374 | 1,124,912 | 1,167,123 | 154,778
Net fee and commission income | 1,148,886 | 763,195 | 324,083 | -7,793 | 69,401
Dividend income | 10,124 | 3,974 | - | 6,150 | -
Net trading result | 544,422 | 218,217 | 149,422 | 55,866 | 120,917
Gains/(losses) from non-trading financial instruments mandatorily measured at fair value through profit or loss | 19,736 | 9,701 | - | 10,035 | -
Foreign currency translation | -21,254 | - | - | -21,254 | -
Rental income from investment properties and other operating leases | 5,266 | - | - | 5,266 | -
General administrative expenses | -2,298,296 | -1,764,332 | -441,045 | -38,170 | -54,749
Gains/(losses) from derecognition of financial assets measured at amortized cost | - | - | - | - | -
Other gains/(losses) from derecognition of financial instruments not measured at fair value through profit or loss | -1,307 | - | - | -1,307 | -
Net impairment gain/ (losses) on financial instruments | -215,199 | 8,521 | -215,540 | -3,036 | -5,144
Other operating result | 54,159 | 55,159 | -136,404 | 145,951 | -10,547
Pre-tax result from continuing operations | 3,795,724 | 1,396,807 | 805,428 | 1,318,833 | 274,656
Net profit of the year | 3,795,724 | 1,396,807 | 805,428 | 1,318,833 | 274,656
Taxes on income | -612,089 | -223,489 | -128,868 | -215,787 | -43,945
Net result for the year | 3,183,635 | 1,173,318 | 676,560 | 1,103,046 | 230,711
Net result attributable to owners of the parent | 3,183,635 | 1,173,318 | 676,560 | 1,103,046 | 230,711
Operating Income | 6,256,367 | 3,097,460 | 1,598,417 | 1,215,394 | 345,096
Operating Expense | -2,298,296 | -1,764,332 | -441,045 | -38,170 | -54,749
Operating Result | 3,958,071 | 1,333,128 | 1,157,372 | 1,177,224 | 290,347
Cost Income Ratio | 36.74% | 56.96% | 27.59% | 3.14% | 15.86%

131
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | 2024
in RON thousands | Bank | Retail | Corporates | ALM & Local Corporate Center | GM
Net interest income | 4,253,358 | 1,999,068 | 1,201,113 | 972,208 | 80,969
Net fee and commission income | 1,071,921 | 737,565 | 284,300 | -8,666 | 58,722
Dividend income | 74,078 | 3,889 | - | 70,189 | -
Net trading result | 487,871 | 183,760 | 136,371 | 22,149 | 145,591
Gains/(losses) from non-trading financial instruments mandatorily measured at fair value through profit or loss | 24,723 | 7,482 | - | 17,241 | -
Foreign currency translation | -2,074 | - | - | -2,074 | -
Rental income from investment properties and other operating leases | 5,346 | - | - | 5,346 | -
General administrative expenses | -2,179,452 | -1,695,739 | -394,567 | -42,369 | -46,777
Gains/(losses) from derecognition of financial assets measured at amortized cost | -26,881 | - | -3,170 | -23,711 | -
Other gains/(losses) from derecognition of financial instruments not measured at fair value through profit or loss | -4,127 | - | - | -4,127 | -
Net impairment gain/ (losses) on financial instruments | -66,482 | -121,808 | 30,724 | 15,261 | 9,341
Other operating result | -354,175 | -107,062 | -89,910 | -151,563 | -5,640
Pre-tax result from continuing operations | 3,284,106 | 1,007,155 | 1,164,861 | 869,884 | 242,206
Net profit of the year | 3,284,106 | 1,007,155 | 1,164,861 | 869,884 | 242,206
Taxes on income | -502,354 | -161,145 | -186,378 | -116,078 | -38,753
Net result for the year | 2,781,752 | 846,010 | 978,483 | 753,806 | 203,453
Net result attributable to owners of the parent | 2,781,752 | 846,010 | 978,483 | 753,806 | 203,453
Operating Income | 5,915,223 | 2,931,764 | 1,621,784 | 1,076,393 | 285,282
Operating Expense | -2,179,452 | -1,695,739 | -394,567 | -42,369 | -46,777
Operating Result | 3,735,771 | 1,236,025 | 1,227,217 | 1,034,024 | 238,505
Cost Income Ratio | 36.84% | 57.84% | 24.33% | 3.94% | 16.40%

132
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | 2025
in RON thousands | Bank | Retail | Corporates | ALM & Local Corporate Center | GM
Assets |  |  |  |  |
Cash and cash equivalents | 11,435,554 | 3,778,145 | - | 7,657,409 | -
Financial assets held for trading | 3,329,764 | - | - | 1,646 | 3,328,118
Derivative financial instruments held for trading | 102,599 | - | - | 1,646 | 100,953
Debt securities held for trading | 3,227,165 | - | - | - | 3,227,165
Non-trading financial assets mandatorily at fair value through profit or loss | 97,614 | 42,084 | - | 55,530 | -
Equity instruments | 92,124 | 42,084 | - | 50,040 | -
Debt securities | 5,490 | - | - | 5,490 | -
Financial assets at fair value through other comprehensive income | 13,290,491 | - | - | 13,290,491 | -
Debt securities | 13,290,491 | - | - | 13,290,491 | -
Financial assets at amortized cost | 100,365,988 | 35,558,482 | 27,189,449 | 32,649,670 | 4,968,387
Debt securities | 23,115,245 | - | 72,683 | 23,042,562 | -
Loans and advances to banks | 5,566,874 | - | - | 4,782,226 | 784,648
Loans and advances to customers | 71,683,869 | 35,558,482 | 27,116,766 | 4,824,882 | 4,183,739
Finance lease receivables | 30,375 | - | - | 30,375 | -
Property and equipment | 1,107,182 | - | - | 1,107,182 | -
Investment property | 15,342 | - | - | 15,342 | -
Intangible assets | 515,201 | - | - | 515,201 | -
Investments in joint ventures and associates | 25,961 | - | - | 25,961 | -
Deferred tax assets | 394 | - | - | 394 | -
Assets held for sale and disposal group | 15,204 | - | - | 15,204 | -
Trade and other receivables | 939,449 | 9,134 | 543,523 | 106,055 | 280,737
Investments in subsidiaries | 925,316 | - | - | 925,316 | -
Other assets | 127,067 | 37,237 | 367 | 68,410 | 21,053
Total assets | 132,220,902 | 39,425,082 | 27,733,339 | 56,464,186 | 8,598,295
Liabilities and Equity |  |  |  |  |
Financial liabilities held for trading | 165,342 | - | - | 6,631 | 158,711
Derivative financial instruments held for trading | 165,342 | - | - | 6,631 | 158,711
Financial liabilities measured at amortized cost | 112,668,813 | 56,225,831 | 34,439,335 | 17,104,182 | 4,899,465
Deposits from banks | 3,262,252 | 33 | - | 1,496,484 | 1,765,735
Borrowings and financing lines | 108,463 | - | - | 108,463 | -
Deposits from customers | 93,460,301 | 55,789,317 | 34,361,670 | 437,437 | 2,871,877
Debt securities issued | 14,246,361 | - | - | 14,246,361 | -
Other financial liabilities | 1,591,436 | 436,480 | 77,665 | 815,438 | 261,853
Lease liabilities | 590,344 | - | - | 590,344 | -
Provisions | 477,507 | 151,736 | 208,408 | 116,033 | 1,330
Current tax liabilities | 54,373 | - | - | 54,373 | -
Other liabilities | 547,340 | 4,701 | 63,893 | 475,530 | 3,216
Total equity | 17,717,183 | 3,281,572 | 2,860,923 | 11,228,491 | 346,197
Total liabilities and equity | 132,220,902 | 59,663,839 | 37,572,559 | 29,575,585 | 5,408,919

133
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

|  |  |  |  | 2024
in RON thousands | Bank | Retail | Corporates | ALM & Local Corporate Center | GM
Assets |  |  |  |  |
Cash and cash equivalents | 10,596,154 | 3,116,586 | - | 7,279,634 | 199,934
Financial assets held for trading | 1,912,779 | - | - | 57,910 | 1,854,869
Derivative financial instruments held for trading | 187,806 | - | - | 57,910 | 129,896
Debt securities held for trading | 1,724,973 | - | - | - | 1,724,973
Non-trading financial assets mandatorily at fair value through profit or loss | 87,862 | 30,964 | - | 56,898 | -
Equity instruments | 75,345 | 30,964 | - | 44,381 | -
Debt securities | 12,517 | - | - | 12,517 | -
Financial assets at fair value through other comprehensive income | 12,767,715 | - | - | 12,767,715 | -
Debt securities | 12,767,715 | - | - | 12,767,715 | -
Financial assets at amortized cost | 91,972,536 | 31,770,189 | 25,565,872 | 29,238,379 | 5,398,096
Debt securities | 20,497,053 | - | 111,420 | 20,385,633 | -
Loans and advances to banks | 5,960,826 | - | - | 4,439,517 | 1,521,309
Loans and advances to customers | 65,514,657 | 31,770,189 | 25,454,452 | 4,413,229 | 3,876,787
Finance lease receivables | 15,043 | - | - | 15,043 | -
Property and equipment | 902,686 | - | - | 902,686 | -
Investment property | 112,198 | - | - | 112,198 | -
Intangible assets | 468,484 | - | - | 468,484 | -
Investments in joint ventures and associates | 25,961 | - | - | 25,961 | -
Deferred tax assets | 90,567 | - | - | 90,567 | -
Assets held for sale and disposal group | 729 | - | - | 729 | -
Trade and other receivables | 995,338 | 7,778 | 464,460 | 338,070 | 185,030
Investments in subsidiaries | 613,371 | - | - | 613,371 | -
Other assets | 115,272 | 38,323 | 466 | 76,409 | 74
Total assets | 120,676,695 | 34,963,840 | 26,030,798 | 52,044,054 | 7,638,003
Liabilities and Equity |  |  |  |  |
Financial liabilities held for trading | 133,740 | - | - | 6,071 | 127,669
Derivative financial instruments held for trading | 133,740 | - | - | 6,071 | 127,669
Financial liabilities measured at amortized cost | 104,748,753 | 54,072,056 | 35,045,338 | 12,659,372 | 2,971,987
Deposits from banks | 1,686,012 | 33 | 279 | 969,961 | 715,739
Borrowings and financing lines | 127,307 | - | - | 127,307 | -
Deposits from customers | 91,281,395 | 53,884,993 | 34,950,870 | 304,673 | 2,140,859
Debt securities issued | 10,407,030 | - | - | 10,407,030 | -
Other financial liabilities | 1,247,009 | 187,030 | 94,189 | 850,401 | 115,389
Lease liabilities | 498,276 | - | - | 498,276 | -
Provisions | 768,162 | 359,741 | 303,943 | 100,849 | 3,629
Current tax liabilities | 38,260 | - | - | 38,260 | -
Other liabilities | 475,339 | 4,085 | 50,454 | 416,751 | 4,049
Total equity | 14,014,165 | 2,927,703 | 3,231,498 | 7,503,769 | 351,195
Total liabilities and equity | 120,676,695 | 57,363,585 | 38,631,233 | 21,223,348 | 3,458,529

134
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

43. Return on assets and turnover information
The Bank applies the stipulations of NBR Regulation 5/2013 regarding prudential requirements for credit institutions.
Return on assets (net profit for the year divided by average total assets) was:

| Group | Bank
| 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Return on assets | 2.67% | 2.42% | 2.57% | 2.46%

The return on assets is calculated based on monthly average total assets and presented in accordance with Article 645 of
the above mentioned regulation.
The consolidated revenues from current activity for the financial exercise ended 31 December 2025 amounts to RON
10,422,604 thousands (31 December 2024: RON 9,272,775 thousands).
The Bank revenues from current activity for the financial exercise ended 31 December 2025 amounts to RON 9,768,225
thousands (31 December 2024: RON 9,085,103 thousands).
Revenues from current activity are presented in compliance with Article 644 of the above mentioned regulation and are
calculated according to National Romanian Bank Order 8/2024 and the components are described in Note 12 section Tax
on Bank revenue.
44. R elated-party transactions and principal shareholders
The nature of the related party relationships for those related parties with whom the Group entered into significant
transactions or had significant balances outstanding at 31 December 2025 and 2024 are detailed below. Transactions were
entered into with related parties during the course of business at market rates.
Principal shareholder
All transactions were carried out at market conditions.
Transactions with management
The Group entered into a number of banking transactions with the management in the normal course of business.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the Group. This includes the members of the Supervisory Board, Executive Committee and executive management.
Remuneration paid related to key management personnel is presented in Note 6.
Transactions with subsidiaries
The Bank holds investments in subsidiaries with whom it entered into a number of banking transactions in the normal
course of business. These transactions were carried out on commercial terms and conditions and at market rates.
Transactions with other related parties
The Group considers the following additional related parties: entities in which the Group owns participations, entities in
which the parent or other controlling entities either have control or have participations, companies in which key
management personnel have direct or indirect interests, and close family members of key management personnel.
Terms and conditions
In relation to related parties, the accounts have the following characteristics:
Current accounts were opened between September 2006 and December 2025 and the interest rate is 0%.
Loans and advances accounts were opened between September 2005 and December 2025, maturing between January 2026
and September 2046. The interest rates for corporate are between 2.63% - 8.09% depending on maturity and currency of
loan. For retail interest rates are between 3.04-6.79% for fixed interest and between 8.36-15.05% variable interest for loans.
Credit cards interest rates are 5.29%-28% fixed interest and 9.03 -21.01% variable interest.
Term deposits were opened between September 2009 and December 2025, maturing between January 2026 and January
2027, and the interest rate is fixed between 0.7%-6.3% depending on the currency and maturity of the deposit.
Loans commitments, financial guarantees and other commitments given includes revocable and irrevocable letters of
guarantee, undrawn commitments for loans and credit cards granted in RON or EUR.
Loan commitments, financial guarantees and other commitments received include loan commitment from parent company.
135
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

The following transactions were carried out with related parties:

Balances and Off-balace exposures with related parties |  |  |  |  |  |  |  | Group
| 2025 | 2024
in RON thousands | Parent | Joint ventures and associates | Key management personnel | Other related parties | Parent | Joint ventures and associates | Key management personnel | Other related parties
Total assets | 1,064,797 | 108,786 | 16,089 | 138,979 | 3,163,163 | 129,808 | 6,520 | 118,212
Cash and cash equivalents | 22,593 | - | - | - | 40,468 | - | - | -
Derivative financial instruments held for trading | 85,120 | - | - | - | 97,288 | - | - | -
Equity investments | - | 25,961 | - | 42,084 | - | 25,961 | - | 30,964
Loans and advances | 867,534 | 82,794 | 16,088 | 19,412 | 2,945,020 | 103,820 | 6,520 | 21,003
Loans and advances to banks | 867,534 | - | - | - | 2,945,020 | - | - | -
Loans and advances to customers | - | 82,794 | 16,088 | 19,412 | - | 103,820 | 6,520 | 21,003
Finance lease receivables | - | - | - | 6,551 | - | - | - | 1,648
Trade and other receivables | 82,296 | 31 | - | 33,610 | 69,637 | 27 | - | 57,211
Other assets | 7,254 | - | 1 | 37,322 | 10,750 | - | - | 7,386
Total liabilities | 2,220,734 | 32,193 | 20,734 | 383,979 | 2,049,401 | 16,063 | 8,940 | 350,879
Financial liabilities measured at amortized cost | 2,126,333 | 32,193 | 20,719 | 328,454 | 1,947,758 | 16,063 | 8,940 | 302,095
Deposits from banks | 646,969 | - | - | 1,446 | 540,851 | - | - | 3,054
Deposits from customers | - | 32,193 | 20,719 | 327,008 | - | 16,063 | 8,940 | 299,041
Borrowings and financing lines | 108,463 | - | - | - | 127,307 | - | - | -
Debt securities issued | 1,370,901 | - | - | - | 1,279,600 | - | - | -
Lease liabilities | 83,827 | - | - | - | 51,452 | - | - | -
Other liabilities | 10,574 | - | 15 | 55,525 | 50,191 | - | - | 48,784
Additional equity instruments | 2,482,035 | - | - | - | 741,555 | - | - | -
Loans commitments, financial guarantees and other commitments given [notional amount] | 128,407 | 110,032 | 1,307 | 332,108 | 44,080 | 63,369 | 773 | 269,995
Loan commitments, financial guarantees and other commitments received | 254,925 | - | - | - | 248,705 | - | - | -
Derivatives [notional amount] | 13,998,882 | - | - | - | 12,880,768 | - | - | -
Related parties: expenses and income generated by transactions with related parties |  |  |  |  |  |  |  | Group
| 2025 | 2024
in RON thousands | Parent | Joint ventures and associates | Key management personnel | Other related parties | Parent | Joint ventures and associates | Key management personnel | Other related parties
Interest income | 116,844 | 10,984 | 597 | 3,201 | 90,181 | 6,528 | 248 | 2,508
Interest expenses | -221,308 | -1,785 | -292 | -9,207 | -111,770 | -774 | -315 | -6,595
Dividend income | - | - | - | 4,075 | - | - | - | 4,054
Fee and commission income | 3,226 | 375 | 81 | 121,917 | 3,280 | 390 | 50 | 120,377
Fee and commission expense | -6,040 | - | -1 | -5,031 | -5,802 | - | - | -5,000
Net impairment gain/ (losses) on financial instruments | -306 | -69 | 12 | 897 | 2,669 | 218 | -7 | 295
Net trading result income/(expense) | 150,912 | 514 | 174 | 13,632 | 131,005 | 7 | 104 | 9,645
Other operating income | 2 | 1 | - | 87 | - | 1 | - | 296
Other operating expense | - | - | -111 | -5,437 | - | - | - | -14,066
Profit before tax income/(expense) | 43,330 | 10,020 | 460 | 124,134 | 109,563 | 6,370 | 80 | 111,514

136
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Balances and Off-balace exposures with related parties |  |  |  |  |  |  |  |  |  | Bank
| 2025 | 2024
in RON thousands | Parent | Investment in subsidiaries | Joint ventures and associates | Key management personnel | Other related parties | Parent | Investment in subsidiaries | Joint ventures and associates | Key management personnel | Other related parties
Total assets | 1,064,797 | 5,698,866 | 108,786 | 16,089 | 121,986 | 3,163,163 | 4,947,361 | 129,808 | 6,520 | 110,111
Cash and cash equivalents | 22,593 | - | - | - | - | 40,468 | - | - | - | -
Derivative financial instruments held for trading | 85,120 | - | - | - | - | 97,288 | - | - | - | -
Equity investments | - | 933,923 | 25,961 | - | 42,084 | - | 623,371 | 25,961 | - | 30,964
Loans and advances | 867,534 | 4,741,340 | 82,794 | 16,088 | 19,412 | 2,945,020 | 4,310,531 | 103,820 | 6,520 | 21,003
Loans and advances to banks | 867,534 | - | - | - | - | 2,945,020 | - | - | - | -
Loans and advances to customers | - | 4,741,340 | 82,794 | 16,088 | 19,412 | - | 4,310,531 | 103,820 | 6,520 | 21,003
Finance lease receivables | - | 19,929 | - | - | 6,551 | - | 11,352 | - | - | 1,648
Trade and other receivables | 82,296 | 3,674 | 31 | - | 33,610 | 69,637 | 2,106 | 27 | - | 57,205
Other assets | 7,254 | - | - | 1 | 20,329 | 10,750 | 1 | - | - | -709
Total liabilities | 2,220,734 | 935,948 | 32,193 | 20,734 | 367,812 | 2,049,401 | 881,257 | 16,063 | 8,940 | 343,211
Financial liabilities measured at amortized cost | 2,126,333 | 934,678 | 32,193 | 20,719 | 328,454 | 1,947,758 | 879,448 | 16,063 | 8,940 | 302,095
Deposits from banks | 646,969 | 522,017 | - | - | 1,446 | 540,851 | 511,308 | - | - | 3,054
Deposits from customers | - | 412,661 | 32,193 | 20,719 | 327,008 | - | 368,140 | 16,063 | 8,940 | 299,041
Borrowings and financing lines | 108,463 | - | - | - | - | 127,307 | - | - | - | -
Debt securities issued | 1,370,901 | - | - | - | - | 1,279,600 | - | - | - | -
Derivative financial instruments held for trading | 83,827 | - | - | - | - | 51,452 | - | - | - | -
Other liabilities | 10,574 | 1,270 | - | 15 | 39,358 | 50,191 | 1,809 | - | - | 41,116
Additional equity instruments | 2,482,035 | - | - | - | - | 741,555 | - | - | - | -
Loans commitments, financial guarantees and other commitments given [notional amount] | 128,407 | 1,217,928 | 110,032 | 1,307 | 332,108 | 44,080 | 556,750 | 63,369 | 773 | 269,995
Loan commitments, financial guarantees and other commitments received | 254,925 | - | - | - | - | 248,705 | - | - | - | -
Derivatives [notional amount] | 13,998,882 | - | - | - | - | 12,880,768 | - | - | - | -
Accumulated impairment for non-performing exposures | - | - | - | - | - | - | 1,282 | - | - | -
Related parties: expenses and income generated by transactions with related parties |  |  |  |  |  |  |  |  |  | Bank
| 2025 | 2024
in RON thousands | Parent | Investment in subsidiaries | Joint ventures and associates | Key management personnel | Other related parties | Parent | Investment in subsidiaries | Joint ventures and associates | Key management personnel | Other related parties
Interest income | 116,844 | 153,975 | 10,984 | 597 | 3,201 | 90,181 | 197,260 | 6,528 | 248 | 2,508
Interest expenses | -221,308 | -43,333 | -1,785 | -292 | -9,207 | -111,742 | -40,392 | -774 | -315 | -6,595
Dividend income | - | 3,543 | - | - | 4,075 | - | 67,886 | - | - | 4,054
Fee and commission income | 3,226 | 1,704 | 375 | 81 | 118,751 | 3,280 | 2,401 | 390 | 50 | 113,688
Fee and commission expense | -6,040 | - | - | -1 | -5,031 | -5,802 | - | - | - | -5,000
Net impairment of subsidiaries | - | 25,264 | - | - | - | - | 25,264 | - | - | -
Net impairment gain/ (losses) on financial instruments | -306 | -31 | -69 | 12 | 897 | 2,669 | 2,877 | 218 | -7 | 295
Net trading result income/(expense) | 150,912 | - | 514 | 174 | 13,632 | 131,005 | 81 | 7 | 104 | 9,645
Other operating income | 2 | 5,510 | 1 | - | 87 | - | 5,143 | 1 | - | 175
Other operating expense | - | -222 | - | -111 | -4,418 | - | -83 | - | - | -11,982
Profit before tax income/(expense) | 43,330 | 146,410 | 10,020 | 460 | 121,987 | 109,591 | 260,437 | 6,370 | 80 | 106,788

137
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

45. Audit fees and other services
The following table contains audit fees and other consulting fees charged by the auditors in the financial years 2025 and 2024:

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024
Fees for the audit of the financial statements | 4,444 | 3,370 | 3,862 | 2,755
Other services involving the issuance of a report | 2,343 | 2,781 | 2,160 | 2,757
Total | 6,787 | 6,151 | 6,022 | 5,512

During the period from 1 January 2026 to 27 March 2026 when the statutory audit report for the Bank was signed, the
financial auditor and its related network firms rendered the following services: (i) for the purpose of Erste Group Bank AG
consolidation as of 31 December 2025, group audit reporting, group regulatory questionnaire reporting and Sustainable
Bond Allocation Reporting and (ii) for BCR local purposes, reporting on the compliance of the presentation of consolidated
and separate financial statements with the requirements of the European Single Electronic Format (“ESEF”) and limited
assurance report on BCR SA’s consolidated sustainability statement.
138
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

46. Split between current and non-current assets and liabilities
Expected remaining maturities of assets and liabilities:

|  | Group
| 31.12.2025 | 31.12.2024
in RON thousands | Current | Non - current | Current | Non - current
Cash and cash equivalents | 11,440,918 | - | 10,642,241 | -
Financial assets held for trading | 3,248,826 | 80,938 | 1,806,792 | 105,987
Derivative financial instruments held for trading | 21,661 | 80,938 | 81,819 | 105,987
Debt securities held for trading | 3,227,165 | - | 1,724,973 | -
Financial assets designated at fair value through profit or loss | - | 97,614 | - | 87,862
Equity instruments | - | 92,124 | - | 75,345
Debt securities | - | 5,490 | - | 12,517
Financial assets at fair value through other comprehensive income | 4,285,692 | 9,004,799 | 2,463,929 | 10,303,786
Debt securities | 4,285,692 | 9,004,799 | 2,463,929 | 10,303,786
Financial assets at amortized cost | 27,557,480 | 70,597,685 | 29,043,719 | 60,994,418
Debt securities | 939,139 | 22,309,583 | 2,608,602 | 18,014,713
Loans and advances to banks | 5,214,881 | 357,227 | 6,004,729 | -
Loans and advances to customers | 21,403,460 | 47,930,875 | 20,430,388 | 42,979,705
Finance lease receivables | 890,187 | 1,787,994 | 904,680 | 1,416,705
Property and equipment | - | 1,135,557 | - | 1,029,795
Investment property | - | 15,343 | - | 112,198
Intangible assets | - | 551,266 | - | 496,946
Investments in joint ventures and associates | - | 34,599 | - | 38,838
Current tax assets | 1,068 | - | 139 | -
Deferred tax assets | - | 2,445 | - | 92,230
Assets held for sale and disposal group | 15,204 | - | 729 | -
Trade and other receivables | 531,751 | 411,790 | 684,608 | 318,328
Other assets | 184,367 | 28,824 | 236,915 | 24,090
Total assets | 48,155,493 | 83,748,854 | 45,783,752 | 75,021,183
Financial liabilities held for trading | 85,416 | 79,926 | 34,892 | 98,848
Derivative financial instruments held for trading | 85,416 | 79,926 | 34,892 | 98,848
Financial liabilities measured at amortized cost | 68,410,976 | 43,742,911 | 64,369,773 | 40,035,523
Deposits from banks | 2,874,314 | 305,118 | 1,378,230 | 329,764
Deposits from customers* | 63,322,146 | 29,761,960 | 61,734,646 | 29,273,194
Debt securities issued | 601,407 | 13,644,954 | - | 10,407,030
Other financial liabilities | 1,613,109 | 30,879 | 1,256,897 | 25,535
Lease liabilities | 79,842 | 511,940 | 76,561 | 423,829
Provisions | 9,838 | 480,210 | 12,205 | 776,108
Current tax liabilities | 58,994 | - | 42,508 | -
Deferred tax liabilities | - | 22,130 | - | 25,177
Other liabilities | 592,575 | - | 919,357 | -
Total liabilities | 69,237,641 | 44,837,117 | 65,455,296 | 41,359,485

*For Deposits from customers the amounts were broken down into the columns ‘< 1 year’ and ‘> 1 year’ on the following
basis. For non-maturing deposits such as current accounts and savings deposits, the liquidity model used for interest rate
risk in the banking book was applied. Core deposits, which are assumed to remain with the bank over a longer horizon, are
allocated to the ‘> 1 year’ bucket. Non‑core deposits are expected to flow out within 1 year are therefore included in the ‘<
1 year’ bucket. All deposits with a given maturity structure, such as term deposits, are allocated according to their
remaining contractual maturity. To comply with the change presented above, the prior-year figure was adjusted as to
enhance comparability.
The amounts over one year related to the derivatives classified in the category ‘held for trading’ are hedging instruments
from an economic but not from accounting point of view.
139
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

Expected remaining maturities of assets and liabilities:

|  | Bank
| 31.12.2025 | 31.12.2024
in RON thousands | Current | Non - current | Current | Non - current
Cash and cash equivalents | 11,435,554 | - | 10,596,154 | -
Financial assets held for trading | 3,248,827 | 80,937 | 1,806,792 | 105,987
Derivative financial instruments held for trading | 21,662 | 80,937 | 81,819 | 105,987
Debt securities held for trading | 3,227,165 | - | 1,724,973 | -
Financial assets designated at fair value through profit or loss | - | 97,614 | - | 87,862
Equity instruments | - | 92,124 | - | 75,345
Debt securities | - | 5,490 | - | 12,517
Financial assets at fair value through other comprehensive income | 4,285,692 | 9,004,799 | 2,463,929 | 10,303,786
Debt securities | 4,285,692 | 9,004,799 | 2,463,929 | 10,303,786
Financial assets at amortized cost | 28,209,601 | 72,156,387 | 29,651,866 | 62,320,670
Debt securities | 907,457 | 22,207,788 | 2,608,602 | 17,888,451
Loans and advances to banks | 5,209,647 | 357,227 | 5,960,826 | -
Loans and advances to customers | 22,092,497 | 49,591,372 | 21,082,438 | 44,432,219
Finance lease receivables | 4,408 | 25,967 | 4,132 | 10,911
Property and equipment | - | 1,107,182 | - | 902,686
Investment property | - | 15,342 | - | 112,198
Intangible assets | - | 515,201 | - | 468,484
Investments in joint ventures and associates | - | 25,961 | - | 25,961
Deferred tax assets | - | 394 | - | 90,567
Assets held for sale and disposal group | 15,204 | - | 729 | -
Trade and other receivables | 527,659 | 411,790 | 677,010 | 318,328
Investments in subsidiaries | - | 925,316 | - | 613,371
Other assets | 127,067 | - | 115,272 | -
Total assets | 47,854,012 | 84,366,890 | 45,315,884 | 75,360,811
Financial liabilities held for trading | 85,416 | 79,926 | 34,892 | 98,848
Derivative financial instruments held for trading | 85,416 | 79,926 | 34,892 | 98,848
Financial liabilities measured at amortized cost | 68,997,925 | 43,670,888 | 64,831,678 | 39,917,075
Deposits from banks | 3,257,864 | 112,851 | 1,689,918 | 123,401
Deposits from customers* | 63,578,059 | 29,882,242 | 61,920,211 | 29,361,184
Debt securities issued | 601,407 | 13,644,954 | - | 10,407,030
Other financial liabilities | 1,560,595 | 30,841 | 1,221,549 | 25,460
Lease liabilities | 79,280 | 511,064 | 75,838 | 422,438
Provisions | - | 477,507 | - | 768,162
Current tax liabilities | 54,373 | - | 38,260 | -
Other liabilities | 547,340 | - | 475,339 | -
Total liabilities | 69,764,334 | 44,739,385 | 65,456,007 | 41,206,523

* For Deposits from customers the amounts were broken down into the columns ‘< 1 year’ and ‘> 1 year’ on the following
basis. For non-maturing deposits such as current accounts and savings deposits, the liquidity model used for interest rate
risk in the banking book was applied. Core deposits, which are assumed to remain with the bank over a longer horizon, are
allocated to the ‘> 1 year’ bucket. Non‑core deposits are expected to flow out within 1 year are therefore included in the ‘<
1 year’ bucket. All deposits with a given maturity structure, such as term deposits, are allocated according to their
remaining contractual maturity. To comply with the change presented above, the prior-year figure was adjusted as to
enhance comparability.
The amounts over one year related to the derivatives classified in the category ‘held for trading’ are hedging instruments
from an economic, but not from accounting point of view.
140
NOTES TO THE FINANCIAL STATEMENTS
Consolidated and Separate for the year ended 31 December 2025

47. Events after the balance sheet date
On 28 February 2026, military attacks occurred in Iran, followed by regional responses that significantly heightened
geopolitical tensions across the Middle East. These developments triggered substantial volatility in oil and gas prices,
impacting international energy markets and causing disruptions to air and maritime transportation in the region.
Although this situation remains ongoing at the date of issuance of these financial statements and no impact on the Group’s
operations has been identified to date, its future effects cannot be reliably estimated. Management will continue to closely
monitor the potential implications and will implement appropriate measures to mitigate any associated risks. This event is
considered a non‑adjusting subsequent event after the balance sheet date.
AUTHORIZED PERSON,AUTHORIZED PERSON,
Signature Signature
Executive Vice-President, Director Accounting Division,
Elke Meier Gina Badea

www.pwc.ro | PricewaterhouseCoopers Audit S.R.L.
Ana Tower, 24/3 floor, 1A Poligrafiei Blvd, District 1
013704 Bucharest, Romania
+40 21 225 3000
EUID ROONRC.J1993017223405, fiscal registration code RO4282940, share capital RON 7,630

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
Independent Auditor’s Report
To the Shareholders of Banca Comercială Română S.A.
Report on the audit of the consolidated and separate financial
statements
Our opinion
In our opinion, the consolidated and separate financial statements give a true and fair view of the
consolidated and separate financial position of Banca Comercială Română S.A. (the “Bank”) and its
subsidiaries (together - the “Group”) as at 31 December 2025, and the Group's and Bank's consolidated
and separate financial performance and consolidated and separate cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the European Union (EU)
and the National Bank of Romania (NBR) Order no. 27/2010 for approving accounting Regulations in
accordance with International Financial Reporting Standards, republished, and subsequent amendments
(the “NBR Order 27/2010”).
Our opinion is consistent with our additional report to the Audit Committee dated 27 March 2026.
What we have audited
The Group’s and the Bank’s consolidated and separate financial statements comprise:
• the consolidated and separate statements of profit or loss for the year ended 31 December 2025;
• the consolidated and separate statements of comprehensive income for the year ended
31 December 2025;
• the consolidated and separate statements of financial position as at 31 December 2025;
• the consolidated and separate statements of changes in equity for the year ended 31 December
2025;
• the consolidated and separate statements of cash flows for the year ended 31 December 2025; and
• the notes to the consolidated and separate financial statements, comprising material accounting
policy information and other explanatory information.
2

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
The consolidated and separate financial statements as at 31 December 2025 are identified as follows:
• Total consolidated equity:RON 17,829,589 thousand;
• Consolidated net result for the year:RON 3,320,091 thousand.
• Total separate equity:RON 17,717,183 thousand;
• Separate net result for the year:RON 3,183,635 thousand.
The Bank’s registered office is in Orhideelor, no. 15D, 2nd floor, Building The Bridge 1, Bucharest, district
6 and its unique fiscal registration code is RO361757.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs), Regulation EU
No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements
regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC
(the “Regulation 537/2014”) and Law 162/2017 regarding statutory audit of annual financial statements
and annual consolidated financial statements and regarding changes to other regulations and subsequent
amendments (the “Law 162/2017”). Our responsibilities under those standards are further described in
the Auditor’s responsibilities for the audit of the consolidated and separate financial statements section
of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group and the Bank in accordance with the ethical requirements of
Regulation 537/2014 that are relevant to audits of financial statements of public interest entities, the
ethical requirements of Law 162/2017 that are relevant to audits of financial statements in Romania and
the International Code of Ethics for Professional Accountants (including International Independence
Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) as
applicable to audits of the financial statements of public interest entities. We have also fulfilled our other
ethical responsibilities in accordance with the ethical requirements of the Regulation 537/2014, the
ethical requirements of the Law 162/2017 and the IESBA Code.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the
Bank and its controlled entities within the European Union are in accordance with the applicable law and
regulations in Romania and that we have not provided non-audit services that are prohibited under
Article 5(1) of the Regulation 537/2014.
3

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
The non-audit services that we have provided to the Bank and its controlled entities in the period from
1 January 2025 to the date of issuing this report, are disclosed in Note 45 “Audit fees and other services”
to the consolidated and separate financial statements.
Our audit approach
Overview

Overall materiality for the consolidated financial statements of the Group: RON 178,136 thousand, which represents 5% of Pre-tax result from continuing operations from the Group’s consolidated statement of profit or loss for the year ended 31 December 2025, adjusted for release of RON 388,919 thousand from other liabilities following a favourable completion of a litigation and considering the related impact on the specific supplementary tax for credit institutions Overall materiality for the separate financial statements of the Bank: RON 172,996 thousand, which represents 5% of Pre-tax result from continuing operations from the Bank’s separate statement of profit or loss for the year ended 31 December 2025, adjusted for release of RON 335,800 thousand from impairment of investments in subsidiaries following favourable completion of a subsidiary’s litigation as indicated above
We planned and scoped our audit of the Group for the financial year 2025 taking under consideration the Group’s current structure whereby the Bank represents a very significant part of the Group’s assets, liabilities, revenue and pre-tax result from continuing operations. Hence, we defined the Bank as the sole significant component within the Group and so it was subject to a full scope audit of its financial information. Application of IFRS 9 in the calculation of expected credit losses for loans and advances to customers (“ECL”)

As part of designing our audit, we determined materiality and assessed the risks of material misstatement
in the consolidated and separate financial statements. In particular, we considered where management
made subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits,
we also addressed the risk of management override of internal controls, including among other matters,
consideration of whether there was evidence of bias that represented a risk of material misstatement due
to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance whether the consolidated and separate financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if individually
or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the consolidated and separate financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group and Bank materiality for the consolidated and separate financial statements
4

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
as a whole as set out in the table below. These, together with qualitative considerations, helped us to
determine the scope of our audit and the nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements, both individually and in aggregate on the consolidated and separate
financial statements as a whole.

Overall Group and Bank materiality | Group: RON 178,136 thousand
| Bank: RON 172,996 thousand
How we determined it | Group: 5% of Pre-tax result from continuing operations from the Group’s consolidated statement of profit or loss for the year ended 31 December 2025, adjusted for release of RON 388,919 thousand from other liabilities following a favourable completion of a litigation and considering the related impact on the specific supplementary tax for credit institutions
| Bank: 5% of Pre-tax result from continuing operations from the Bank’s separate statement of profit or loss for the year ended 31 December 2025, adjusted for release of RON 335,800 thousand from impairment of investments in subsidiaries following favourable completion of a subsidiary’s litigation as indicated above
Rationale for the materiality benchmark benchmarks applied | We chose pre-tax result from continuing operations adjusted as explained above as those releases were not considered relevant for establishing materiality thresholds for the Group and Bank. Pre-tax result from continuing operations benchmark was selected because, in our view, it is the benchmark against which the performance of the Group and Bank is most commonly measured by its stakeholders, and it is a generally accepted benchmark. We chose 5% which is consistent with quantitative materiality thresholds used for profit- oriented entities in this sector.

We agreed with the Audit Committee that we would report to them misstatements identified during our
audit above RON 8,907 thousand for the Group and RON 8,650 thousand for the Bank as well as
misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated and separate financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated and separate financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Key audit matter | How our audit addressed the key audit matter
Application of IFRS 9 in the calculation of expected credit losses for loans and advances to customers (“ECL”) |
IFRS 9, “Financial Instruments”, requires recognition of ECL allowances for loans and advances to customers from the time a loan is originated, based on the deterioration of credit risk since initial recognition and reflecting the impact of future macroeconomic conditions. If the credit risk has not increased significantly (Stage 1), IFRS 9 requires allowances based on 12-month expected credit losses. If the credit risk has increased significantly since initial recognition (Stage 2) or if the loan is ‘credit impaired’ (Stage 3), IFRS 9 requires allowances based on lifetime expected credit losses. The calculation of ECL allowance for Stage 1, Stage 2 and non- significant loans and advances to customers in Stage 3 is performed collectively on the basis of common risk characteristics. The key parameters used in this calculation include the probability of a loan falling into arrears and subsequently entering into default (“PD”), criteria for identifying significant increase in credit risk (“SICR”), the estimated exposure at the moment of default (“EAD”) and the estimated loss from defaulted loans (“LGD”). These parameters are based on statistical historical data as well as assumptions about future developments. Statistical models are used for determining the key assumptions for incorporating forward-looking information (“FLI”). The FLI assessment considers a baseline forecast and two alternative scenarios (upside and downside) for selected macroeconomic variables. For significant loans and advances in Stage 3, the ECL allowance is calculated individually based on probability weighted scenarios of cash flow forecasts. The key assumptions are the timing and amount of the expected cash flows (from both operating cash flows and recoveries from collateral) and the probability weighting attached to the different scenarios. The uncertainty inherent in the estimation of the ECL allowance for loans and advances could be impacted by the geopolitical developments, which have worsened current and forecasted economic conditions and related macroeconomic scenarios, potentially having a significant impact on specific industry sectors. Management addressed these uncertainties by regular updates during the year of the FLI and related scenarios weights and, where applicable, usage of overlays, calculated as post-model adjustments. Management performs an annual update of key risk parameters and, as required, updates the macro models used in the calculation of the FLI estimates. Based on the analysis above, and taking into account that “Loans and advances to customers” are the most significant financial statement line item in the total assets, we have determined the estimation of the expected credit losses for loans and advances to customers as a key audit matter. “Chapter 1 - Material accounting policies information”, Note 15 “Financial assets at amortized cost” and Note 28 “Credit risk” to the consolidated and separate financial statements provide detailed information on the ECL for loans and advances to customers. | In relation to the application of the ECL statistical models, we assessed the compliance of the key methodologies and models with the IFRS 9 requirements. We engaged our credit risk modelling specialists to assist us in undertaking this assessment. We also assessed the changes in the ECL methodology including the updated macroeconomic model for retail loan portfolio. We also assessed the reasonableness of selecting and using multiple macroeconomic scenarios, including the latest macroeconomic forecasts as well as the severity and weights of modelled scenarios. We familiarized ourselves with the key ECL methodological changes in the year and assessed them against the internal IFRS 9 ECL models validation results performed by the Bank. We tested, on a sample basis, the key internal controls over the inputs of critical data which impacts the probability of default, loss given default and application of FLI into the source systems and the flow and transformation of data from the source systems to the ECL calculation engine. We performed detailed risk assessment analytics over the Bank’s loan portfolio to identify possible areas of risk and better calibrate our audit procedures described below. We performed substantive testing over the critical data (cash repayments, forbearance and default status, valuation of collateral) used in the ECL calculation as of 31 December 2025. We tested a sample of the statistical models used by the management to determine the key assumptions (probability of default, loss given default and exposure at default) to assess whether the calculation process was consistent with the IFRS 9 requirements and the Bank’s own ECL methodology. We verified that the key assumptions (EAD, PD, LGD) resulting from the statistical estimation models and approved by management were the same as the ones effectively implemented in the system and used for the ECL automated calculation. We reconciled the output from the automated ECL calculation engine with the relevant information in the audited consolidated and separate financial statements. With regards to significant exposures of loans and advances to customers within Stage 3, for which ECL is assessed individually, we tested the management approval of the key inputs, assumptions and discounted cash-flows from both operating cash flows and recoveries from collateral that are used in the ECL calculation. We tested the application of SICR criteria and default definition used for stage allocation of loans and advances to customers. We inspected the management approvals for the updated post model adjustments (overlays) including the criteria used for transferring exposures from Stage 1 to Stage 2. We have selected, based on risk criteria, a representative sample of (i) individually analysed exposures and (ii) collectively assessed (performing) debtors for the purpose of testing ECL stage allocation and timely identification of SICR or impairment indicators and for testing the valuation of ECL allowance for significant impaired loans and advances to clients.

6

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
How we tailored our Group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the consolidated and separate financial statements as a whole, taking into account the structure of the
Group and the Bank, the accounting processes and controls, and the industry in which the Group and the
Bank operate.
We planned and scoped our audit for the year 2025 reflecting the Group’s current structure whereby the
Bank represents the vast majority of the Group’s assets (95%), liabilities (96%) and pre-tax result from
continuing operations (88%) of all the consolidated Group subsidiaries before consolidation
eliminations. Hence, we defined the Bank as the sole significant component within the Group and so the
Bank was subject to an audit of its complete financial information. We applied analytical procedures to
the financial information of the three largest subsidiaries of the Group (BCR Banca pentru Locuinte, BCR
Leasing IFN SA and BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA) and other
audit procedures on their material balances and transactions and on the remaining components no
procedures were considered necessary.
Reporting on other information including the Consolidated and Separate
Administrators’ Report
Administrators are responsible for the other information. The other information comprises the
Consolidated and Separate Administrators’ Report and the Consolidated Sustainability Statement, which
is part of the Consolidated and Separate Administrators’ Report, but does not include the consolidated
and separate financial statements and our auditor’s report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information,
including the Consolidated and Separate Administrators’ Report.
In connection with our audit of the consolidated and separate financial statements, our responsibility is
to read the other information identified above and, in doing so, consider whether the other information is
materially inconsistent with the consolidated and separate financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
With respect to the Consolidated and Separate Administrators’ Report, we considered whether the
Consolidated and Separate Administrators’ Report is consistent with the consolidated and separate
financial statements and whether the Consolidated and Separate Administrators’ Report includes the
disclosures required by NBR Order 27/2010 points 32-34.
Based on the work undertaken in the course of our audit, in our opinion:
• the information given in the Consolidated and Separate Administrators’ Report for the financial
year for which the consolidated and separate financial statements are prepared is consistent with the
consolidated and separate financial statements; and
7

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
• the Consolidated and Separate Administrators’ Report, excluding the Consolidated Sustainability
Statement, has been prepared in accordance with NBR Order 27/2010 points 32, 33-34.
In addition, in light of the knowledge and understanding of the Group and the Bank and its environment
obtained in the course of the audit, we are required to report if we have identified material misstatements
in the Consolidated and Separate Administrators’ Report. We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the
consolidated and separate financial statements
Management is responsible for the preparation of the consolidated and separate financial statements that
give a true and fair view in accordance with International Financial Reporting Standards as adopted by
the EU and NBR Order 27/2010, and for such internal control as management determines is necessary to
enable the preparation of consolidated and separate financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, management is responsible for
assessing the Group’s and the Bank’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Group and the Bank or to cease operations, or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial
reporting process.
Auditor’s responsibilities for the audit of the consolidated and separate
financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated and separate financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
8

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Group’s or the Bank’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s and the Bank’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and the Bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial
statements, including the disclosures, and whether the consolidated and separate financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the Group as a basis for forming an opinion
on the consolidated and separate financial statements. We are responsible for the direction, supervision
and review of the audit work performed for the purposes of the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated and separate financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences
9

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on other legal and regulatory requirements
Reporting on report regarding information related to income tax
In accordance with NBR Order 27/2010, point 57^16, in connection with the audit of the consolidated
and separate financial statements for the financial year ended as at 31 December 2025, our responsibility
is to state if, for the previous financial year ended as at 31 December 2024, the Bank had the obligation,
in accordance with points 57^4 - 57^10 of NBR Order 27/2010, to publish a report regarding information
related to income tax for the financial year ended 31 December 2024 and if this is the case, whether such
report was published in accordance with point 57^14 of NBR Order 27/2010.
The Bank did not have the obligation to publish the report regarding information related to income tax.
Report on the compliance of the presentation of consolidated and separate
financial statements with the requirements of the European Single
Electronic Format (“ESEF”)
We have been engaged as part of our audit engagement letter by the management of the Bank to conduct
a reasonable assurance engagement for the verification of compliance with the applicable requirements of
the presentation of the consolidated and separate financial statements of Banca Comercială Română
S.A.’s Group for the year ended 31 December 2025 in the digital files bcr-2025-12-31-0-ro (the
“Presentation of the Consolidated and Separate Financial Statements”).
Description of a subject matter and applicable criteria
The Presentation of the Consolidated and Separate Financial Statements has been applied by the
management of the Bank to comply with the requirements of art. 3 and 4 of the Commission Delegated
Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European
Parliament and of the Council with regard to regulatory technical standards on the specification of a
single electronic reporting format and subsequent amendments (the “ESEF Regulation”). The applicable
requirements regarding the Presentation of the Consolidated and Separate Financial Statements are
contained in the ESEF Regulation.
The requirements described in the preceding sentence determine the basis for application of the
Presentation of the Consolidated and Separate Financial Statements and, in our view, constitute
appropriate criteria to form a reasonable assurance conclusion.
10

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
Responsibility of the management and those charged with governance
The management of the Bank is responsible for the Presentation of the Consolidated and Separate
Financial Statements that complies with the requirements of the ESEF Regulation.
This responsibility includes the selection and application of appropriate markups in XBRL using ESEF
taxonomy and designing, implementing and maintaining internal controls relevant for the preparation of
the Presentation of the Consolidated and Separate Financial Statements which is free from material non-
compliance with the requirements of the ESEF Regulation.
Those charged with governance are responsible for overseeing the financial reporting process, which
should also be understood as the preparation of consolidated and separate financial statements in
accordance with the format resulting from the ESEF Regulation.
Our responsibility
Our responsibility was to express a reasonable assurance conclusion whether the Presentation of the
Consolidated and Separate Financial Statements complies, in all material respects, with the ESEF
Regulation.
We conducted our engagement in accordance with the International Standard on Assurance
Engagements 3000 (R) - ‘Assurance Engagements other than Audits and Reviews of Historical Financial
Information’ (ISAE 3000(R)). This standard requires that we comply with ethical requirements, plan and
perform procedures to obtain reasonable assurance whether the Presentation of the Consolidated and
Separate Financial Statements complies, in all material aspects, with the applicable requirements.
Reasonable assurance is a high level of assurance, but it does not guarantee that the service performed in
accordance with ISAE 3000 (R) will always detect the existing material misstatement (significant non-
compliance with the requirements).
Quality management requirements and professional ethics
Our firm applies International Standard on Quality Management 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
We comply with the independence and other ethical requirements of the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International
Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and professional behaviour.
11

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
Summary of the work performed
Our planned and performed procedures were aimed at obtaining reasonable assurance that the
Presentation of the Consolidated and Separate Financial Statements complies, in all material aspects,
with the applicable requirements and such compliance is free from material errors or omissions. Our
procedures included in particular:
• obtaining an understanding of the internal control system and processes relevant to the
application of the single electronic reporting format of the Consolidated and Separate Financial
Statements, including the preparation of the XHTML format and marking up the consolidated financial
statements;
• verification whether the XHTML format was applied properly;
• evaluating the completeness of marking up the consolidated financial statements using the XBRL
markup language according to the requirements of the implementation of electronic format as described
in the ESEF Regulation;
• evaluating the appropriateness of the Group’s' use of XBRL markups selected from the ESEF
taxonomy and the creation of extension markups where no suitable element in the ESEF taxonomy has
been identified;
• evaluating the appropriateness of anchoring of the extension elements to the ESEF taxonomy;
and
• evaluating the consistency between the digital information from the Presentation of Consolidated
and Separate Financial Statements, visible for the human reader, with the signed and audited
consolidated and separate financial statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Conclusion
In our opinion, based on the procedures performed, the Presentation of the Consolidated and Separate
Financial Statements complies, in all material respects, with the ESEF Regulation.
Appointment
We were first appointed as auditors of Banca Comercială Română S.A. by the Ordinary General
Shareholders Meeting on 27 January 2017. Our appointment has been renewed annually by the Ordinary
General Shareholders Meeting representing a total period of uninterrupted engagement appointment of 9
years, covering the financial years ended 31 December 2017 up to 31 December 2025. Our appointment
12

Independent Auditor’s Report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the original.
However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
for the year ended 31 December 2025 was approved by the Ordinary General Shareholders Meeting on
27 January 2025.
The financial auditor responsible for carrying out the audit resulting in this independent auditor’s report
is Victor Sasu.
On behalf of
PricewaterhouseCoopers Audit S.R.L.
Audit firm
registered with the Public Electronic Register of financial auditors and audit firms under no. FA6

Refer to the original signed Romanian version

Victor Sasu
Financial Auditor
registered with the Public Electronic Register of financial auditors and audit firms under no. AF4097
Thomas Magill
Representative
Bucharest, 27 March 2026

www.pwc.ro | PricewaterhouseCoopers Audit S.R.L.
Ana Tower, 24/3 floor, 1A Poligrafiei Blvd, District 1
013704 Bucharest, Romania
+40 21 225 3000

Independent auditor’s limited assurance report on
Banca Comercială Română SA’s Consolidated
Sustainability Statement
To the Shareholders of Banca Comercială Română SA
Limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated sustainability statement of
Banca Comercială Română SA (the “Bank”), included in Consolidated Sustainability Statement of the
Consolidated and Separate Administrators' Report (the “Consolidated Sustainability Statement”), as at
31 December 2025 and for the year then ended.
The Bank’s registered office is in Romania, Bucharest, district 6 Orhideelor, no. 15D, 2nd floor, Building
The Bridge 1, and its unique fiscal registration code is RO361757.
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Consolidated Sustainability Statement is not prepared, in all
material respects, in accordance with the provisions of point 33 of National Bank of Romania (NBR)
Order no. 27/2010 for approving accounting Regulations in accordance with International Financial
Reporting Standards, republished, with subsequent amendments (the “NBR Order 27/2010”)
implementing Article 29(a) of EU Directive 2013/34/EU, including:
• compliance with the European Sustainability Reporting Standards (ESRS), including that the process
carried out by the Bank to identify the information reported in the Consolidated Sustainability Statement
(the “Process”) is in accordance with the description set out in note IRO-1 – Description of the process to
identify and assess material impacts, risks and opportunities; and
• compliance of the disclosures in subsection 12.2.1 EU Taxonomy Disclosures within the 12.2
Environmental information section of the Consolidated Sustainability Statement with Article 8 of EU
Regulation 2020/852 (the “Taxonomy Regulation”).
2

Independent auditor’s limited assurance report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the
original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on
Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of
historical financial information (“ISAE 3000 (Revised)”), issued by the International Auditing and
Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion. Our responsibilities under this standard are further described in the Auditor’s responsibilities
section of our report.
Our independence and quality management
We have complied with the independence and other ethical requirements of the International Code of
Ethics for Professional Accountants (including International Independence Standards) issued by the
International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and professional
behaviour and of the requirements relevant in Romania, including Law 162/2017 regarding statutory
audit of annual financial statements and annual consolidated financial statements and regarding changes
to other regulations and subsequent amendments (“Law 162/2017”).
The firm applies International Standard on Quality Management 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Responsibilities for the Consolidated Sustainability Statement
The Administrators of the Bank are responsible for designing and implementing a process to identify the
information reported in the Consolidated Sustainability Statement in accordance with the ESRS and for
disclosing this Process in note IRO-1 – Description of the process to identify and assess material impacts,
risks and opportunities of the Consolidated Sustainability Statement. This responsibility includes:
• understanding the context in which the Group’s activities and business relationships take place and
developing an understanding of its affected stakeholders;
• the identification of the actual and potential impacts (both negative and positive) related to
sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to
affect, the Group’s financial position, financial performance, cash flows, access to finance or cost of
capital over the short-, medium-, or long-term;
• the assessment of the materiality of the identified impacts, risks and opportunities related to
sustainability matters by selecting and applying appropriate thresholds; and
• making assumptions that are reasonable in the circumstances.
The Administrators of the Bank are further responsible for the preparation of the Consolidated
Sustainability Statement, in accordance with the provisions of point 33 of NBR Order 27/2010
implementing Article 29(a) of EU Directive 2013/34/EU, including:
3

Independent auditor’s limited assurance report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the
original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
• compliance with the ESRS;
• preparing the disclosures in subsection 12.2.1 EU Taxonomy Disclosures within the 12.2
Environmental information section of the Consolidated Sustainability Statement, in compliance with
Article 8 of the Taxonomy Regulation;
• designing, implementing and maintaining such internal control that the Administrators of the Bank
determine is necessary to enable the preparation of the Consolidated Sustainability Statement that is free
from material misstatement, whether due to fraud or error; and
• the selection and application of appropriate sustainability reporting methods and making
assumptions and estimates that are reasonable in the circumstances.
Those charged with governance are responsible for overseeing the Group’s sustainability reporting
process.
Inherent limitations in preparing the Consolidated Sustainability Statement
In reporting forward-looking information in accordance with ESRS, the Administrators of the Bank are
required to prepare the forward-looking information on the basis of disclosed assumptions about events
that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be
different since anticipated events frequently do not occur as expected.
Reporting on sustainability matters in accordance with the ESRS requires the use of information from the
Group's value chain, which is only available to a limited extent. As described in note BP-2 – Disclosures
in relation to specific circumstances, paragraph ‘Estimation uncertainty and assumptions’ of the
Consolidated Sustainability Statement, the Administrators of the Bank must therefore rely on third- party
data and information, and make assumptions and estimates to determine the sustainability information
disclosed in the Consolidated Sustainability Statement. The completeness and accuracy of such
sustainability information is therefore subject to significant inherent uncertainties.
Auditor’s responsibilities
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about
whether the Consolidated Sustainability Statement is free from material misstatement, whether due to
fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence decisions of users taken on the basis of the Consolidated
Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise
professional judgement and maintain professional scepticism throughout the engagement.
Our responsibilities in respect of the Consolidated Sustainability Statement, in relation to the Process,
include:
4

Independent auditor’s limited assurance report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the
original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
• obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the
effectiveness of the Process, including the outcome of the Process;
• considering whether the information identified addresses the applicable disclosure requirements of
the ESRS; and
• designing and performing procedures to evaluate whether the Process is consistent with the Bank’s
description of its Process set out in note IRO-1 – Description of the process to identify and assess
material impacts, risks and opportunities.
Our other responsibilities in respect of the Consolidated Sustainability Statement include:
• identifying where material misstatements are likely to arise, whether due to fraud or error; and
• designing and performing procedures responsive to where material misstatements are likely to arise in
the Consolidated Sustainability Statement. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the
Consolidated Sustainability Statement. The procedures in a limited assurance engagement vary in nature
and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the
level of assurance obtained in a limited assurance engagement is substantially lower than the assurance
that would have been obtained had a reasonable assurance engagement been performed.
The nature, timing and extent of procedures selected depend on professional judgement, including the
identification of disclosures where material misstatements are likely to arise in the Consolidated
Sustainability Statement, whether due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, we:
• obtained an understanding of the Process by:
o performing inquiries to understand the sources of the information used by the Administrators of
the Bank (e.g., stakeholder engagement, business plans and strategy documents); and
o reviewing the Bank’s internal documentation of its Process;
• evaluated whether the evidence obtained from our procedures with respect to the Process
implemented by the Bank was consistent with the description of the Process set out in note IRO-1 –
Description of the process to identify and assess material impacts, risks and opportunities.
In conducting our limited assurance engagement, with respect to the Consolidated Sustainability
Statement, we:
5

Independent auditor’s limited assurance report

This version of our report is a translation from the original, which was prepared in Romanian language. All possible care has been taken to ensure that the translation is an accurate representation of the
original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
• obtained an understanding of the Group’s reporting processes relevant to the preparation of its
Consolidated Sustainability Statement by obtaining an understanding of the Group’s control
environment, processes and information system relevant to the preparation of the Consolidated
Sustainability Statement, but not for the purpose of providing a conclusion on the effectiveness of the
Group’s internal control.
• evaluated whether the information identified by the Process is included in the Consolidated
Sustainability Statement;
• evaluated whether the structure and the presentation of the Consolidated Sustainability Statement is
in accordance with the ESRS;
• performed inquires of relevant personnel and analytical procedures on selected information in the
Consolidated Sustainability Statement;
• performed substantive assurance procedures on selected information in the Consolidated
Sustainability Statement;
• where applicable, compared disclosures in the Consolidated Sustainability Statement with the
corresponding disclosures in the consolidated and separate financial statements and Consolidated and
Separate Administrators' Report;
• evaluated the methods, assumptions and data used by the Bank for developing estimates and forward-
looking information;
• obtained an understanding of the Bank’s process to identify taxonomy-eligible and taxonomy- aligned
economic activities and the corresponding disclosures in the Consolidated Sustainability Statement.
On behalf of
PricewaterhouseCoopers Audit SRL
Audit firm
registered with the Public Electronic Register of financial auditors and audit firms under no. FA6
Victor Sasu
Financial auditor
registered with the Public Electronic Register of financial auditors and audit firms under no. AF4097
Thomas Magill
Representative
Bucharest, 27 March 2026
1
Banca Comercială Română S. A.
No. CFO Office 5 / 27.03.2026
Supervisory Board
Annual Administrators’ Report
for the year ended at 31 December 2025
This report is prepared in accordance with requirements of ASF
Regulation 5/2018.
Report issued: 27 March 2026

Name of legal entity: | Banca Comercială Română S.A.
Headquarters: | 15D Orhideelor avenue, The Bridge 1 Building 2nd Floor, 6th District, Bucharest, post code 060071
Contact: Tel No. InfoBCR: | *2227 number available in any network in Romania +4021.407.42.00, number available in any network in Romania or abroad
Website | www.bcr.ro
Email: | contact.center@bcr.ro
Registration Number in the Trade Register: | J40/90/1991
Company Registration Number: | 361757
Banking Register Number: | RB-PJR-40-008/18.02.1999
LEI Code | 549300ORLU6LN5YD8X90
Notification registered as Personal Data Operator at ANSPDCP under No: | 3776 and 3772
Subscribed and paid-up capital: | 1,625,341,625.40 lei

2

The regulated market on which the bonds are issued: | Bucharest Stock Exchange (BVB) (www.bvb.ro) Vienna Stock Exchange (www.wienerborse.at)
The main characteristics of the bonds issued by BCR S.A. | Issuance in amount of RON 600,000,000, ISIN ROEAZVK5DFP8 - listed BVB Issuance in amount of RON 1,000,000,000, ISIN RO1AQREPLMW7 - listed BVB Issuance in amount of RON 500,000,000, ISIN ROMU2ND4VHC6 - listed Vienna Stock Exchange, BVB Issuance in amount of RON 600,000,000, ISIN ROPQT4NGMLM3 - listed BVB Issuance in amount of RON 351,500,000, ISIN RO451CMZH2K1 - listed BVB Issuance in amount of RON 702,000,000, ISIN ROPC9F84ZSG4 - listed BVB Issuance in amount of RON 334,000,000, ISIN ROGJ5KD9L1W9 - listed BVB Issuance in amount of USD 20,000,000, ISIN AT0000A32YQ4 - listed Vienna Stock Exchange Issuance in amount of EUR 700,000,000, ISIN AT0000A34CN3 - listed Vienna Stock Exchange, BVB Issuance in amount of RON 1,000,000,000, ISIN ROM2PE1DEUG5 - listed BVB Issuance in amount of EUR 45,000,000, ISIN AT0000A3DBN9 - listed Vienna Stock Exchange Issuance in amount of RON 31,000,000, ISIN AT0000A3K3M8 - listed Vienna Stock Exchange Issuance in amount of RON 1,125,000,000, ISIN RODKE0XXSB02 - listed BVB Issuance in amount of EUR de 500,000,000, ISIN AT0000A3QMW9 - listed Vienna Stock Exchange, BVB

3
1. Analysis of the Bank's activity
a) Description of the Bank’s main activity
Banca Comercială Română S.A. is incorporated and domiciled in Romania. Its registered office is at 15D Orhideelor
avenue, The Bridge 1 Building 2nd Floor, 6th District, Bucharest, post code 060071, Romania.
According to Art. 9 from Charter of the Bank, the core area is monetary intermediation (CAEN Code 641). The Bank's
principal activity is other monetary intermediation activities (CAEN Code 6419).
The Group provides day-to-day banking services and other financial services to governmental institutions, corporate and
individual clients operating in Romania and abroad. These services include: accounts opening, domestic and international
payments, foreign exchange transactions, working capital finance, medium and long term facilities, retail loans, finance
micro and small enterprises, bank guarantees, letters of credit and through subsidiaries also leasing, brokerage, financial
consultancy services and asset management.
b) The Bank’s establishment date
Banca Comercială Română (BCR or Bank) was established in 1990, when it took over the commercial operations of the
National Bank of Romania.
The Bank was recorded with the Trade Register under no. J40/90/1991, sole registration number 361757, and in the registry
of credit institutions under no. RB-PJR-40-008.
c) Significant mergers and reorganizations of the Bank, its subsidiaries during the financial year
During 2025, Banca Comercială Română Group (“BCR Group” or “the Group”) changed its structure, comprising the
parent bank, Banca Comercială Română S.A. and its subsidiaries, presented in the following table:

Company's name | Country of incorporation | Nature of the business | Shareholding | Gross Book Value | Net Book Value | Impairment
2025 | 2024
BCR Leasing IFN SA | Romania | Financial leasing | 99.97% | 99.97% | 389,491 | 389,491 | -
BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA | Romania | Pension Fund | 99.99% | 99.99% | 229,484 | 198,125 | 31,359
BCR Banca pentru Locuinte SA | Romania | Banking | 99.99% | 99.99% | 948,578 | 335,800 | 612,778
Suport Colect SRL | Romania | Workout | 72.87% | 99.99% | 983,047 | - | 983,047
BCR Payments Services SRL | Romania | Payments transactions | 99.99% | 99.99% | 1,900 | 1,900 | -
BCR Fleet Management SRL (i) | Romania | Operational leasing | - | 99.97% | - | - | -
Total |  |  |  |  | 2,552,500 | 925,316 | 1,627,184

(i) During 2025 BCR Fleet Management was merged in Suport Colect SRL, after that BCR Fleet Management SRL
being deregistered.
d) The main results of the assessment of the Bank’s activity
External Audit
The financial statements are audited by PricewaterhouseCoopers Audit SRL starting with the financial year ended 31
December 2017.
According to the Audit Opinion, the consolidated and separate Financial Statements give a true and fair view of the
consolidated and separate financial position, the consolidated and separate financial performance and cash-flows for
December 31st 2025 in accordance with International Financial Reporting Standards as endorsed by the European Union.
4
Internal Audit
The Audit Committee is a consultancy body, which reviews, reports to, advises and assists the Supervisory Board in
carrying out its tasks related to internal control and audit, as well as on the quality and performance of Bank’s internal
accountants and auditors, the reliability of the Bank’s financial information, and the adequacy of the Bank's financial
controls and policies.
The Audit Committee is made of 3 members and one additional replacement member elected out of the Supervisory Board
members.
Members of the Audit Committee must have basic accounting and financial knowledge and at least one member of the
Audit Committee shall have accounting or financial management professional background. The responsibilities,
organization, the operation and the procedures of the Audit Committee are established by the Audit Committee Internal
Rules.
1.1.1. General items of the assessment for the financial year ended December 31, 2025
The separate and consolidated financial statements prepared in accordance with the International Financial Reporting
Standards endorsed by the European Union (NBR Order no. 27/2010, as subsequently amended and supplemented) are
presented below:

|  | 31.12.2025
in RON thousands | Group | Bank
Pre-tax result from continuing operations | 3,943,854 | 3,795,724
Net result for the year | 3,320,091 | 3,183,635
Total assets | 131,904,347 | 132,220,902

Total (Tier 1+2) capital ratio of BCR Group stood at 22.8% as of December 2025, well above the regulatory
requirements of the National Bank of Romania and clearly reflecting BCR's strong capital and funding positions.
Return on assets calculated based on monthly average total assets (net profit for the year divided by average total assets)
was 2.67% for Group and 2.57% for Bank.
1.1.2. Assessment of the Bank’s at technical level
BCR offers a full range of financial products and services through a network of 290 branches, out of which 73% cashless
branches and 81% featuring 24/7 self-service areas. BCR also operates 20 business centers and 18 mobile offices dedicated
specifically to companies. BCR customers have the largest national network of ATMs and multifunctional machines -
almost 2,000 machines, and full banking services through Internet banking, Mobile banking, Phone-banking and E-
commerce.
BCR’s financial inclusion programme for rural and small urban communities, through which BCR operates two mobile
branches, has so far covered a distance of 27,000 km and reached 52 communities, supporting over 7,500 people through
financial education sessions and personalized banking services.
1.1.3. Assessment of the technical and material supply activities
N/A
1.1.4. Assessment of the sales activity
More than 1.9 million people benefited from a personalized financial plan through Financial Coaching, including over
900,000 in 2025 alone. This planning tool has been integrated into the George Benefits Programme, Romania’s first banking
loyalty programme, available to 1.8 million BCR clients. Structured across five benefit levels – Go, Advanced, Pro, Max, and
Max Invest – the programme encourages clients to diversify their financial portfolios and optimize their banking costs. To
date, more than 1.4 million BCR clients have received discounts through the George Benefits Programme: around 50% in
payments and cash withdrawals, while 420,000 customers accessed loans and deposits at preferential interest rates. In
addition, 61% of clients who set a goal within the programme chose saving as their financial priority, also opening a saving
account.
BCR is the first bank in Romania to introduce RoPay Alias, providing a fully digital banking experience for its clients. Users
can request or transfer money instantly using only a mobile phone number, without an IBAN, in a secure, efficient, and
easy manner.
5
Over 22% of customers accessed a mortgage through a 100% digital journey in George, compared to 9% in 2024. December
2025 reached a record level, with 30% of customers choosing George to originate their mortgage. BCR is the first bank in
Romania to fully digitalize the most complex retail lending product, offering end-to-end digital journeys in George for both
mortgage origination and refinancing.
Over 2.1 million BCR products were opened through a fully digital process in 2025, marking a 16% increase compared to
2024.
BCR clients received over RON 37 million through George Moneyback, the loyalty programme that rewards users with
cashback for card payments. George Moneyback has now reached over 1.46 million users, up 7% compared to 2024.
BCR further strengthened its portfolio of strategic partnerships supporting the growth of its digital ecosystem, through
collaborations with leading brands in retail, e-commerce, mobility and services, such as eMAG, Kaufland, Bolt, OLX,
Dedeman and Vodafone, alongside OMV, Mega Image and Uber. In addition, the George Store offering was expanded
through new partnerships in travel, entertainment, mobility and shopping, including Animawings, Paralela 45, Dertour,
Voxa, Uber and Freshful.
Approximately 170,000 companies are enrolled in George for Business, Romania’s unique digital ecosystem. In 2025, over
76% of eligible clients opened their banking relationship through George, while more than 60% of loans to microenterprise
clients were originated through the available digital products: Digital Overdraft, George Smart Credit and the George
Credit Card.
BCR expanded its portfolio of digital solutions for corporates, and as of December 2025 merchants can enroll in the RoPay
system directly via George, benefiting from payment settlement in up to 10 seconds, immediate funds availability,
optimized processing costs, simplified payment-to-delivery reconciliation, rapid implementation, and a high level of
security and operational availability.
BCR serves as a financial partner for over 15,000 companies, including SMEs and large corporates, providing expertise and
tailored solutions to meet the needs of the real economy. The bank is one of the market leaders in syndicated lending, with
a total participation in 2025 of approximately RON 3.2 billion (EUR 630 million) in major expansion and technology-driven
initiatives.
BCR impact in the economy and society
In the retail banking business, BCR generated new loans to individuals and micro businesses of RON 17.8 billion in 2025,
higher by 14.3% year-on-year. The stock of unsecured consumer loans (including credit cards and overdrafts) increased by
15.5% yoy. At the same time, the stock of mortgage loans increased by 10.4% yoy, of which the standard mortgage loans
(Casa Mea) increased by 31.3% year-on-year, partially offset by repayments for Prima Casa loans.
In the corporate banking business, BCR approved new loans of RON 16.1 billion in 2025, of which about a quarter aimed
for investments. The stock of corporate loans increased by 6.8% year-on-year. Most of the financing was directed towards
energy, consumer goods, and public infrastructure, key sectors for Romania’s resilience and development. In 2025, BCR
granted RON 6.5 billion for projects supporting the energy, agriculture, real estate, infrastructure, and construction sectors.
In 2025, BCR also approved more than 200 loans and other products totalling about RON 1.6 billion for prefinancing and
cofinancing of EU and national-funded projects for corporates and microenterprises.
Additionally, BCR granted loans backed by guarantees issued by the European Investment Fund (EIF), the National
Guarantee Fund for SME (FNGCIMM), the European Investment Bank (EIB) and the Romanian Bank for Investment and
Development (BID), totalling about RON 1.1 billion in 2025.
In the fourth quarter 2025, BCR signed an SME portfolio guarantee agreement with the Romanian Bank for Investment
and Development. Based on this new instrument, BCR estimates to grant more than RON 1 billion financing in 2026, with
a strong focus on investment loans.
In 2025, BCR Leasing exceeded the EUR 1 billion threshold in its financed portfolio, marking a significant milestone for the
Romanian financial leasing market.
BCR Social Finance supported more than 2,170 microenterprises, including 1,030 in the agribusiness sector, by providing
EUR 45.2 million in financing, which contributed to preserving over 4,150 jobs. In 2025, the institution financed 55 NGOs
and social enterprises with EUR 7.6 million, contributing to the wellbeing of more than 140,000 beneficiaries, maintaining
1,350 jobs, and
6
creating an additional 450 new positions. Additionally, BCR Social Finance granted 256 StudyUP loans, totaling over EUR
500,000, to support lifelong learning through university, master’s, doctoral, and specialization programmes.
In 2025, Marc Impact Programme, a regional scaling programme implemented by BCR, BCR Social Finance and Synerb,
completed its first cohort and launched the second mentorship edition for impact-driven businesses. In Romania, 40
companies addressing social or environmental challenges are involved in Marc, and as a result of the programme, HELP
Autism has already secured over EUR 1 million in investment capital and launched Romania’s first social franchise,
thereby facilitating access to more than EUR 100 million in government funding.
BCR invested EUR 5 million in ZBOR, a project developed in partnership with an extensive network of NGOs active in
youth development and social innovation. A year and a half after its launch, ZBOR ecosystem has reached over 70,000
young people nationwide through 9 hubs located in Constanța, Iași, Cluj, Brașov, Ploiești, Târgu Jiu, Baia Mare, Vaslui and
Timișoara.
Over the past 10 years, more than 1 million children, teenagers, young people and adults attended Money School trainings,
with 100,000 participants in 2025 alone.
BCR Group performance in 2025
BCR delivered a solid financial performance, posting a net profit of RON 3,320 million (EUR 658 million) in 2025, up by
20.0% against RON 2,767 million (EUR 556 million) in 2024, supported by continued expansion in customer business.
In September 2025, BCR Group recorded a one-off income amounting to RON 388.9 million as a result of the favourable
High Court ruling from 2024 becoming final and MDLPA Decision no. 201286/26.09.2024 (‘Amnesty Decision’) becoming
final, thus allowing for the reversal of the previously recognized liability. The favourable ruling referred to the legal action
initiated by BCR BpL subsidiary in 2022 for the cancellation of accessory budgetary obligations ((i.e. interest and penalties
accrued to the principal obligation for the period elapsed between date when the state premiums were cashed in and the
date when BCR BpL reimbursed the state premiums to MDLPA), based on the special provisions of Government
Emergency Ordinance no. 69/2020 on several fiscal measures, extension of certain deadlines, introduction of certain tax
incentives and amendment of certain regulatory acts.
Operating result improved by 8.2% to RON 4,137 million (EUR 821 million) in 2025, compared to RON 3.825 million (EUR
769 million) in 2024, supported by higher operating income.
Net interest income rose by 7.8%, reaching RON 4,746 million (EUR 941 million) in 2025, up from RON 4,401 million (EUR
885 million) in 2024. The advance reflects higher business volumes and an optimized balance sheet structure.
Net fee and commission income increased by 7.6% to RON 1,214 million (EUR 241 million) in 2025, compared to RON
1,128 million (EUR 227 million) in 2024, driven by stronger transactional activity, lending growth and higher insurance-
related fees.
Net trading & FV result increased by 7.4% to RON 555 million (EUR 110 million) in 2025, from RON 517 million (EUR 104
million) in 2024.
As a result of these developments, operating income advanced by 7.2% reaching RON 6,533 million (EUR 1,296 million) in
2025, compared to RON 6,096 million (EUR 1,225 million) in 2024.
General administrative expenses rose by 5.5%, reaching RON 2,395 million (EUR 475 million) in 2025 versus RON 2,271
million (EUR 456 million) in 2024, driven by continued investments in strategic projects as well as the impact of inflation
and increased VAT.
As such, the cost-income ratio improved to 36.7% in 2025, versus 37.3% in 2024.
Risk Costs and Asset Quality
The net result from the impairment of financial instruments amounted to RON 252 million (EUR 50 million) in 2025,
compared with RON 106 million (EUR 21 million) in 2024. This development reflects the growth in customer business
volume as well as the new NPL formation, partially compensated by provision releases from recoveries and debt sales.
7
The NPL ratio for BCR Group, calculated according to Erste Group methodology, stood at 2.7% as of December 2025,
broadly in line with 2.6% recorded in December 2024. The stable year-on-year evolution reflects the positive lending
dynamics, solid portfolio quality, and the efficient NPL management measures taken during the year. The NPL
provisioning coverage stood at 132% as of December 2025.
Net loans and advances to customers increased by 9.3% against 31 December 2024 to RON 72,956 million (EUR 14,314
million) as of 31 December 2025, supported by the advance in both retail and corporate segments.
Deposits from customers increased by 2.3% against 31 December 2024 to RON 93,084 million (EUR 18,263 million) as of 31
December 2025, driven by the increase in retail deposits.
1.1.5. Assessment of the aspects related to the Bank’s and the Group’s employees
The number of own employees of the Bank at 31 December 2025 was 4,809 employees (31 December 2024: 4,919
employees).
The number of own employees of the Group at 31 December 2025 was 5,117 employees (31 December 2024: 5,220
employees).
Key statistics related to BCR Group’s workforce:
• gender distribution: 73.50% women and 26.50% men;
• employee age distribution by age groups: 14% under 30 years old; 60% between 30-50 years old; 26% over 50 years
old;
• BCR Group’s employees completed on average 47 hours of professional development. Employees in management
positions completed an average of 70 hours of training.
Improvement and professional development
Continuous training and skills development represent a material opportunity to strengthen organizational resilience and
sustain competitive advantage. Rapid technological advancements, evolving regulatory requirements, and changing
customer expectations demand a workforce equipped with up-to-date expertise and future-ready capabilities. Investing in
structured learning programs helps ensure that employees can deliver high-quality, compliant, and innovative banking
solutions.
Training initiatives focuses on enhancing technical knowledge, digital & AI literacy, and risk management skills, which are
critical for providing a comprehensive range of financial services - from lending and investment products to payment
solutions and advisory services. These programs also support the development of analytical and customer-centric
competencies, enabling employees to respond effectively to market shifts and client needs. Tailored programs build
important capabilities, foster innovation and keep the employees and organization competitive in a rapidly evolving
market.
Leadership development remains a strategic priority, ensuring that future leaders possess the agility and decision-making
capabilities required in a highly regulated and fast-changing environment. Succession planning and talent management
frameworks are designed to secure continuity in governance and strategic execution, reinforcing trust and stability for
stakeholders.
By aligning employee development with organizational objectives, BCR Group fosters engagement, productivity, and
innovation. This approach not only strengthens operational performance but also contributes to long-term financial
sustainability. Coordination of these initiatives is managed within the People & Culture division, ensuring consistency and
alignment with industry standards and regulatory expectations.
BCR Group aims to be the place where people embrace opportunities, learn every day, and collaboratively work together.
Collective contribution and impact should go beyond geography, entity, or business area borders. The training and skills
development are governed by BCR 'Recruitment, training and Human resources administration' policy and overarched by
BCR People and Culture strategy, applicable in BCR Group. These frameworks establish clear principles for fostering
continuous learning, capability building, and leadership development, ensuring alignment with organizational objectives
and regulatory standards in the financial sector.
8
BCR Group is committed to strategic workforce planning to enable more targeted recruitment and further development
measures, as well as driving employee growth through reskilling and upskilling initiatives, while supporting their financial
literacy.
The design of our training and skills development processes involves multiple stakeholder groups, as follows:
- Talent Acquisition, Learn & Development teams as owners of the process and methodology - to enable efficient
consultation, alignment with the strategic objectives of BCR Group and feedback integration.
- HR Business Partners (HRBPs) - to support implementing teams and promote the processes among managers
and employees.
- Senior Leadership (Top & Middle Management) - to validate priorities and ensure alignment with strategic
objectives.
- People managers across all divisions – to provide operational insights and check for practical relevance.
- Employees – to express their views on the targeted curricula through focus groups, surveys, pilot groups, and
feedback rounds.
- External partners (learning providers, leadership assessment specialists) – to benchmark and strengthen
program design.
A structured and specific communication plan is used for every recruitment, training, and development processes,
including but not limited to: People & Culture intranet page, weekly newsletters, Viva Engage internal social platform,
direct discussions with stakeholders, emails, open-line sessions, HR Business talks.
Internal HR teams are assigned clear ownership for governance, implementation, and ongoing support. Budget and time
resources are allocated annually for leadership training and development programs, digital learning platforms, and
external assessments where needed. HR Business Partners were equipped to support teams during the training,
performance and development cycles.
Attendance and completion rates for the mandatory training sessions are monitored yearly as to ensure that these are
followed by all employees. Optional training courses and dedicated development programs are monitored through
attendance data and feedback at the end of each iteration and program overall. This data serves as input for deciding upon
the continuation of such programs and/or for future enhancements such as the identification of key interest topics that
should be further addressed. Furthermore, feedback loops with HRBPs and managers ensure ongoing refinement of
processes. These annual reviews of the talent and development framework ensure alignment with strategy and evolving
workforce needs.
The 'Recruitment, training and Human resources administration' policy is approved by the Management Board, its'
principles are applicable to all BCR Group entities, and is available to all employees on the communication channels listed
in the section S1-3 "Processes to remediate negative impacts and channels for own workforce to raise concerns". BCR
Group applies an Erste Group -wide defined leadership framework that promotes accountability, ethical decision-making,
and inclusion as well as future orientation and servant leadership. Structured succession planning ensures continuity and
prepares future leaders based on group-wide leadership dimensions, supporting long-term organizational resilience.
1.1.6. Assessment related the impact of the Bank’s core business on environment
The BCR journey towards fulfilling its ESG goals includes altogether addressing climate and environmental risks and
opportunities, while fully observing all regulatory frameworks and recommendations issued by authorities. Our efforts go
beyond this as BCR is focused on generating social and economic value, and our actions in 2025 were targeted as follows:
• We have mobilised finance for a lower carbon, more equitable and inclusive society, while being strongly
involved into a continuous ESG dialogue with our customers or potential customers, from all segments, either in
bilateral meetings, organized workshops or thematic events.
• We are constantly developing dedicated products to support sustainable investments, and we are already offering
such products to support energy-efficiency solutions and energy efficient buildings, as well as the deployment of
renewable energy projects.
9
• We have accelerated our efforts to set decarbonization pathways for our portfolios in line with the strategy
approved at Erste Group level. We aim to achieve a net-zero status of our financed portfolio by 2050. In this
respect, BCR alongside Erste Group has set decarbonization targets for 5 sectors: Electricity production,
Automotive, Commercial Real Estate (CRE), Mortgage retail, Oil and gas extraction.
• We have constantly increased our sustainable loans portfolio, adding exposures from commercial real-estate,
retail mortgages and green energy, but also from others segments as sustainable transportation infrastructure,
energy efficiency industrial projects, circular economy and recycling.
• We drive finance towards sustainable technologies and renewable energy, while also supporting the climate
transition efforts of our emissions-intensive customers.
• In 2023, BCR issued its third green bond, in line with Erste Group Sustainable Financing Framework, first
international issue of green Eurobonds of a Romanian bank, in the amount of EUR 700 million, confirming our
green transition commitments. The issue was also listed on Bucharest Stock Exchange.
• We have implemented mandatory ESG training to the BCR induction curriculum, as well as providing access to
expert level training for our professionals managing ESG aspects on an ongoing basis.
• Our communication strategy includes education programs for climate and financial education for all segments,
developed together with partners, ONGs and academia.
Banca Comercială Română:
• admits and accepts the fundamental importance of an integrated approach of the environmental and social
factors, as well as of lasting development principles within its financing activity.
• pays adequate attention to its financing processes, securing compliance with the minimum environmental, social
and occupational safety regulatory requirements and standards applicable in Romania at project level before
making the financing decision.
Environmental risks, as a transversal risk are handled within the existing risk management structure, in which each risk
owner is responsible for influencing environmental risk.
The management of these risks is integrated into the existing risk management framework:
• Strategic risk management ensures the integration of ESG in the Statement on risk appetite, risk strategy,
assessment of the materiality of the risk, the testing framework in crisis conditions and the inclusion of ESG in
risk reporting; also coordinates establishing intermediate objectives for the Net Zero transition.
• Corporate risk management ensures ESG integration in industry strategies and participates in establishing
intermediate targets for the transition of the Net Zero portfolio; it is ensured that adequate diligence is
implemented in the underwriting and management processes of collateral.
BCR does not finance activities which do not meet environmental requirements specified in the Romanian legislation,
relevant international conventions and agreements to which Romania adhered expressly. Analysis of environmental issues
is part of the lending process and is mandatory for every transaction.
In general, the environmental impact of financial institutions mainly resides in the indirect environmental footprint
associated with the loan portfolios. Nevertheless, the Bank’s ambition is to also reduce its direct ecological footprint.
Therefore, as concerns BCR’s own operations, the most effective way to progress was to reduce CO2 emissions by switching
to electricity from renewable sources.
In 2025, the Bank had a total share of directly purchased electricity from renewable sources of 100%. Also, we have set a
target to reach 90% overall green electricity which we achieved by purchasing Renewable Energy Guarantees of Origin
from a country which is member of the Association of Issuing Bodies (AIB), where direct purchase of green electricity is
not possible. In 2025, the electricity used in our headquarter building in Bucharest was entirely originated from renewable
sources.
Our headquarter premises hold a LEED Platinum (Leadership in Energy and Environmental Design) certification. In
addition, the Bank upgraded old heating and air conditioning systems and installed new sensors for lightening logos on
premises used. The focus in 2026 will continue to be on increasing green electricity for our operational buildings, reducing
our CO2 footprint through
10
different other initiatives (car fleet strategy and transitioning to low CO2 emission vehicles until 2030), while compensation
remaining emissions with carbon certificates issued for local impact projects.
Erste Group enjoys top notch ESG rating credentials reflecting a continuously strong performance in ESG objectives.
For December 2025, the Bank is disclosing quantitative information required by the Regulation UE 2020/852, as part of the
BCR Administrators Report.
The European Union's Regulation EU 2020/852 on the establishment of a framework to facilitate sustainable investment
(further referred to as the EU Taxonomy Regulation) serves as a basis for redirecting capital flows towards sustainable
economic activities and as a fundamental support for the transition to a sustainable European economy. On the one hand,
this is ensured by the introduction of a uniform classification system for sustainable economic activities and on the other
hand, through an introduction of specific reporting obligations for both financial and non-financial undertakings.
For further details please refer to:https://www.bcr.ro/ro/investitori/rapoarte-financiare.
1.1.7. Assessment of Research and Development
N/A
1.1.8. Assessment of the Bank's risk management activity
Risk management processes ensure that the bank’s risk profile remains in line with the risk strategy. The development of
specific risk profile (i.e. retail credit, corporate credit, operational risk, etc.) is reported through dedicated risk reports in a
more granular way and supports risk decision making of the dedicated risk functions. These reports also include specific
monitoring metrics that provide an early warning signal for adverse developments of portfolio quality (client, segment,
countries and industries) or risk drivers. In instances where certain risk portfolios or events are identified as potentially in
distress, these are closely monitored by the dedicated risk functions to manage the risk impact and to develop effective
strategies to minimize potential losses. These processes facilitate early risk detection and reaction.
The overall risk profile for the Group, as well as the individual risk profiles are implemented through the Group Risk
Strategy and are subject to an annual comprehensive review process. A quarterly assessment of the risk profiles checks if
there are changes in respect of the risk materiality or if new risks occurred in the Bank’s activity.
Given Group business strategy, the key risks for the Group are credit risk, market risk (including interest rate risk in the
banking book), liquidity and funding risk and operational risk. All material risks are covered by the Group’s control and
risk management framework. This entails a set of different tools and governance to ensure adequate oversight of the overall
risk profile and sound execution of the risk strategy, including appropriate monitoring and escalation of issues that could
materially impact the risk profile of the Group.
Based on the Group Risk Strategy and the Group overall and individual risk profiles, the Group subsidiaries, including the
Bank, set up their local risk profile. Also, the Group’s capital management framework serves to ensure that the Group and
its subsidiaries are capitalized in line with the risk profile, regulatory requirements and economic capital requirements.
As part of its risk strategy, the Group analyses its actual risk profile and determines a target risk profile based on its
strategic goals. The risk materiality analysis, which underpins the determination of the overall risk profile, is part of the
risk strategy package. The materiality analysis, based on the assessment of quantitative and qualitative risk drivers, leads to
the determination of the current risk profile (for the year ending) and a risk profile for the following year. For example now
we have done the materiality analysis for YE 2025 and the risk profile for 2026. The target risk profile is a result of the risk
assessment process in combination with the boundaries set by the business strategy and the risk appetite framework. In
terms of governance, full oversight of the risk profile and a sound execution of the risk strategy is ensured including
appropriate monitoring and escalation of issues that could materially impact the risk profile of the Group.
The proportionality principle is a crucial and integral part of the Group’s overall risk framework and strategy. The
proportionality principle is applied for the core components of the Group ICAAP framework (Risk Materiality Assessment/
Risk taxonomy, Risk-bearing Capacity Calculation, Risk Appetite & Risk Profile, Stress testing, Risk Concentration
Analysis, and Recovery Plan).
11
The Group level risk management principles, concepts and processes are generally designed, developed and implemented
to address over-arching organizational needs across both group and local entities/subsidiaries reflecting a high degree of
granularity and detail.
However, subsequent implementation and application at Group subsidiaries require an approach that takes differences in
business structures, size, complexity and relevance into account. This will ensure a meaningful, suitable and adequate
application across the Group in line with local needs and capabilities while still fulfilling overall Group level requirements
and standards.
The evaluation of proportionality criteria is reviewed on an annual basis and included in the Risk Strategy. In addition, a
reassessment might be carried out outside the annual review cycle if changed business parameters indicate a need for a
respective reclassification.
Starting from the volume and nature of the Bank’s activity as part of the Group, the risk profile of the Group is driven by
the Bank risk profile. Thus, the Risk Profile for Group follows in general the same directions as the Bank, both regarding to
overall risk profile and individual risks profiles based on the following considerations:
• the volume and nature of the Bank activity as part of Group;
• the categorization of the Bank as a full subsidiary based on the Proportionality Principles.
1.1.9. Outlook on Bank’s activity
2026 expected macroeconomic development
Economic growth is estimated at +2.1% in 2026, with investments being the key metric to watch this year.
Real wage growth is likely to remain negative at least until 2H26 which should affect household consumption.
The inflation rate could ease to 3.7% y/y in December 2026 from 9.7% y/y in December 2025, and the NBR could start
cutting rates as early as May dependent on inflation path.
The average unemployment rate is estimated to go marginally down to 5.7% in 2026, after 6.0% in 2025.
Balance Sheet developments
It is estimated that loan production will remain the primary driver of asset growth, with an anticipated mid-single-digit
increase over the budget year. Both the retail and corporate portfolios are forecast to outperform the market next year.
Both Retail and Corporate loan portfolios are expected to expand slightly faster than the overall market. Compared to the
initial forecast, Retail loan volumes show stronger growth, reflecting the dynamic market conditions in 2025, while
Corporate maintains its previously set growth ambition.
We expect deposits from customers to continue growing steadily in 2026, with an estimated two-digit growth rate. This
positive trend is driven by robust performance in both the retail and corporate sectors.
Loan-to-deposit ratio (gross) at 74 per cent.
Statement of profit or loss developments
Operating income estimated to grow at a mid-single-digit rate, mainly on the back of net fee and commission income and
net interest income, in line with volume growth, while trading is expected to follow the market trends.
It is anticipated that general administrative expenses will undergo moderate growth, enabling strategy implementation,
correlated with FTE development, as a direct result of productivity and efficiency gains.
Cost of risk (cost of risk/ average loans to customers) is estimated at a normalized level of around 0.45 per cent.
Financial performance is expected to remain robust. A key indicator, return on equity, is projected to remain sound at up to
16% by 2026.
Capital & Minimum requirement for eligible liabilities ("MREL") ratios at comfortable levels driven by a diversified capital
& MREL instruments issued.
12
The current situation regarding Iran has no direct impact on the Group, as there is no operational presence in that country.
Indirect effects, such as financial market volatility or secondary impacts resulting from sanctions imposed on some of our
clients, cannot be excluded. Future geopolitical developments could lead to economic difficulties. Any resulting financial
effects cannot be assessed at this time.
2. The Bank’s tangible assets
Currently, the Bank has a portfolio of 28 properties, located in 22 counties, of which the largest number of properties are
located in Bucharest - 3 units each, and the remaining 25 properties are located in other counties in Romania with
maximum 2 properties in each county.
In 2019, the Bank decided to pursue a strategy of optimizing the network of units and headquarter buildings including
selling certain properties. The implementation of this strategy is ongoing.
Thus, the Bank's property portfolio is classified for accounting purposes in accordance with IAS 16, IFRS 5 and IAS 40
respectively, depending on the purpose for which the property is held.
During 2025, the Bank sold 7 properties (land and buildings), the cumulated net book value of which amounted to RON
19,093.12 thousand.
3. Securities Market
3.1. Markets where the securities issued by the Bank are traded
BCR’s current debt issuance programme implemented in 2013 is a programme for issuing debt instruments in various
currencies and maturities with a limited range of interest rate structures.
In April 2018, BCR’s Extraordinary Shareholders General Meeting has approved the extension of the Debt Issuing
Programme for a period of 10 years, as well as new bond structures (e.g. subordinated notes, Minimum requirement for
eligible liabilities (MREL) notes). In 2019, the debt issuance programme has been integrated into the Multi Issuer
Programme (MIP) arranged by Erste Group Bank and is approved by Financial Market Authority (Austria) and listed on
the Vienna Stock Exchange.
In 2025, 3 bond issues (2024: 1) were executed under the MIP, a Senior Preferred bond with a volume of RON 31m (2024:
EUR 45m), listed on the Vienna Stock Exchange, a RON 1.125m Senior Non Preferred bond listed on the Bucharest Stock
Exchange, and a EUR 500m Senior Non Preferred bond listed on the Vienna and Bucharest Stock Exchanges.
As of 31 December 2025, BCR had 14 bond issues outstanding under the Multi Issuer Programme, in total amount of RON
12.45 bn RON, out of which 11 bonds listed on the Bucharest Stock Exchange (www.bvb.ro), 6 bonds issues listed in the
Vienna Stock Exchange (https://www.wienerborse.at/en/search/?q=BCR).

ISIN | Issue date | Maturity date | Category | Type | Currency | Issue value | Paying Agent | Listing Venue
ROEAZVK5DFP8 | 12/16/2019 | 12/16/2026 | SENIOR | NON-PREFERRED | RON | 600,000,000 | BCR | BVB
RO1AQREPLMW7 | 5/21/2021 | 5/21/2028 | SENIOR | NON-PREFERRED | RON | 1,000,000,000 | BCR | BVB
ROMU2ND4VHC6 | 10/14/2021 | 10/14/2028 | SENIOR | PREFERRED | RON | 500,000,000 | BCR | BVB, VSE
ROPQT4NGMLM3 | 12/9/2021 | 12/9/2028 | SENIOR | NON-PREFERRED | RON | 600,000,000 | BCR | BVB
RO451CMZH2K1 | 3/31/2022 | 3/31/2027 | SENIOR | NON-PREFERRED | RON | 351,500,000 | BCR | BVB
ROPC9F84ZSG4 | 6/14/2022 | 6/14/2027 | SENIOR | NON-PREFERRED | RON | 702,000,000 | BCR | BVB
ROGJ5KD9L1W9 | 10/6/2022 | 10/6/2028 | SENIOR | NON-PREFERRED | RON | 334,000,000 | BCR | BVB
AT0000A32YQ4 | 3/7/2023 | 12/15/2029 | SENIOR | PREFERRED | USD | 20,000,000 | EGB | VSE
AT0000A34CN3 | 5/19/2023 | 5/19/2027 | SENIOR | NON-PREFFERED | EUR | 700,000,000 | EGB | VSE, BVB
ROM2PE1DEUG5 | 12/11/2023 | 12/11/2029 | SENIOR | NON-PREFERRED | RON | 1,000,000,000 | BCR | BVB
AT0000A3DBN9 | 6/14/2024 | 1/14/2028 | SENIOR | NON-PREFERRED | EUR | 45,000,000 | EGB | VSE
AT0000A3K3M8 | 3/13/2025 | 3/13/2031 | SENIOR | PREFERRED | RON | 31,000,000 | EGB | VSE
RODKE0XXSB02 | 11/11/2025 | 11/11/2031 | SENIOR | NON-PREFERRED | RON | 1,125,000,000 | BCR | BVB
AT0000A3QMW9 | 25/11/2025 | 25/11/2031 | SENIOR | NON-PREFERRED | EUR | 500,000,000 | EGB | VSE, BVB

13
3.2. Description regarding Bank’s dividends policy
The net profit of the Bank for the financial year ended 31 December 2025, amounting to RON 3,183,635 will be distributed
according to General Meeting of Shareholders’ decision and in compliance with the current legislation.
The proposal for the distribution of profit is in accordance with: art. 29 para. 1 of the Accounting Law no. 82/1991,
republished as subsequently amended and supplemented, para. 67 of the Law no. 31/1990, republished as subsequently
amended and supplemented and para. 27 of BCR Charter. The Supervisory Board proposes to the General Meeting of
Shareholders the distribution of 2025 net profit as follows:

Table A |
Item description | Amount - RON
Other reserves[1] | 29,655,051
Dividend distribution and AT1 coupon payments, out of which:[2] | 1,777,049,850
- ordinary dividends | 1,591,817,460
- AT1 coupon[3] | 185,232,390
Retained earnings[4] | 1,376,930,019
Total | 3,183,634,920

Table B |
Item description | Amount - RON
Transfer of reserves[5] | -420,951
Retained earnings[5] | 420,951
Total impact in retained earnings[4]+[5] | 1,377,350,970

[1] The amount of RON 29,655,051 represents the reinvested accounting profit in 2025 of BCR which was exempt from
applying corporate income tax, in accordance with the provisions of the Fiscal Code in force and which should be allocated
to „Other Reserves”.
[2] The amount of RON 1,777,049,850 represents the gross amount of ordinary dividends and coupons related to AT1
instruments issued by BCR in September 2022 and in January 2025 recorded in other AT1 capital items.
[3] The AT1 coupon will be booked as payable in EUR on the date of approval of their distribution by the GMS and will be
paid according to contract on 28 May 2026. Its value, established according to the terms and conditions of the AT1 notes, is
EUR 36,249,000. The RON equivalent mentioned above has been calculated at the exchange rate estimated for payment
date. Its final value will be lower or higher depending on the evolution of the EUR - RON exchange rate up to the date of
registration of the payment obligation in EUR. The FX difference will have impact on the Retained earnings – item 4.
[4] The amount allocated to retained earnings from the net profit of 2025 totalling RON 1,376,930,019 will be used in
accordance with the Bank's business strategy.
[5] The amount of RON 420,951 represents transfer to retained earnings of amounts recognized in previous years as reserve
for reinvested profit for which conditions for tax credit are no longer fulfilled (assets disposed earlier than mandatory
period in the fiscal law). These amounts will be used in accordance with the Bank’s business strategy.
3.3. Description of any activities of the Bank to acquire its own shares
N/A
14
3.4. The number and nominal value of the shares issued by the parent company and owned by
the subsidiaries
At 31St December 2025 and 31st December 2024, BCR Leasing IFN SA holds 109 BCR shares with nominal value of 0.10
RON/share.
3.5. Presentation of the methods used by the Bank for paying its obligation towards the
owners of these types of securities in case that the bank issued bonds and/or other debt
securities
The coupon payment and principal repayments of the outstanding senior non-preferred and senior preferred bonds are
made in accordance with the provisions of sections "Securities Note" of the respective Base Prospectus, as well as the Final
Terms of the bonds, published on the web page of the Bucharest Stock Exchange (www.bvb.ro) and Vienna Stock
Exchange (https://www.wienerborse.at), direct link:
BVB - Bonds BCR26 BANCA COMERCIALA ROMANA
BVB - Bonds BCR28 BANCA COMERCIALA ROMANA
BVB - Bonds BCR28A BANCA COMERCIALA ROMANA
BVB - Bonds BCR28B BANCA COMERCIALA ROMANA
BVB - Bonds BCR27 BANCA COMERCIALA ROMANA
BVB - Bonds BCR27A BANCA COMERCIALA ROMANA
BVB - Bonds BCR28C BANCA COMERCIALA ROMANA
BVB - Bonds BCR27E BANCA COMERCIALA ROMANA
BVB - Bonds BCR29 BANCA COMERCIALA ROMANA
BVB - Bonds BCR31 BANCA COMERCIALA ROMANA
BVB - Bonds BCR31E BANCA COMERCIALA ROMANA
VSE - Bonds ROMU2ND4VHC6 BANCA COMERCIALA ROMANA
VSE - Bonds AT0000A32YQ4 BANCA COMERCIALA ROMANA
VSE - Bonds AT0000A34CN3 BANCA COMERCIALA ROMANA
VSE - Bonds AT0000A3DBN9 BANCA COMERCIALA ROMANA
VSE - Bonds AT0000A3K3M8 BANCA COMERCIALA ROMANA
VSE - Bonds AT0000A3QMW9 BANCA COMERCIALA ROMANA
15
4. Bank’s Management
As of 31.12.2025 the members of the Supervisory Board were:
• Manfred Wimmer – Chairman;
• Stefan Dörfler – Deputy Chairman;
• Daniela Camelia Nemoianu – member;
• Hildegard Gacek – member;
• Elisabeth Krainer Senger -Weiss – member;
• Iris Bujatti – member;
• Christine Catasta – member.
The Members of the Management Board as of 31.12.2025 were as follows:
1. Sergiu Cristian Manea – Executive President, Chairman of the Management Board - mandate valid until
28.02.2030;
2. Elke Meier – Executive Vice-President coordinating the Financial functional line, Member of the
Management Board - mandate valid until 31.12.2027;
3. Dana Luciana Dima - Executive Vice-President coordinating the Retail & Private Banking functional line,
Member of the Management Board - mandate valid until 31.10.2029;
4. Thomas Kolarik - Executive Vice-President coordinating the Operations & IT functional line, Member of
the Management Board –mandate valid until 31.12.2027;
5. Ioana Anca Gheorghiade – Executive Vice-President coordinating the Risk functional line, Member of the
Management Board - mandate valid until 31.10.2027.
Management Board members meet the general conditions provided by the law and the special conditions of the
Banking Law, National Bank’s regulations, and Recruitment and Remuneration Policy of BCR Group management.
Professional experience details of Management Board may be found on the following link: https://www.bcr.ro/en/
about-us/bcr-management.
The Management Board may set up committees as it deems necessary and appropriate. Such committee’s
competencies and authority will be stipulated by the Management Board and responsibilities will be defined by each
committee’s internal rules.
There are no litigation or administrative proceedings in the records of the bank involving the members of the
Supervisory Board or the Management Board of BCR.
5. Significant transactions
During 2025, BCR issued bonds in amount of RON 3,705,250 thousand in accordance with approved strategy and
also capital increase using AT1 instruments in amount of RON 1,740,480 thousand.
16
6. Financial Highlights
6.1 Statements of financial position
The structure and evolution of the Group's main asset, liability and equity categories are presented below.

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2023 | 2025/2024 | 31.12.2025 | 31.12.2024 | 31.12.2023 | 2025/2024
Assets |  |  |  |  |  |  |  |
Cash and cash equivalents | 11,440,918 | 10,642,241 | 16,763,792 | 7.5% | 11,435,554 | 10,596,154 | 16,724,913 | 7.9%
Financial assets held for trading | 3,329,764 | 1,912,779 | 701,088 | 74.1% | 3,329,764 | 1,912,779 | 701,137 | 74.1%
Derivative financial instruments held for trading | 102,599 | 187,806 | 135,678 | -45.4% | 102,599 | 187,806 | 135,727 | -45.4%
Debt securities held for trading | 3,227,165 | 1,724,973 | 565,410 | 87.1% | 3,227,165 | 1,724,973 | 565,410 | 87.1%
Non-trading financial assets mandatorily at fair value through profit or loss | 97,614 | 87,862 | 79,363 | 11.1% | 97,614 | 87,862 | 79,363 | 11.1%
Equity instruments | 92,124 | 75,345 | 59,350 | 22.3% | 92,124 | 75,345 | 59,350 | 22.3%
Debt securities | 5,490 | 12,517 | 20,013 | -56.1% | 5,490 | 12,517 | 20,013 | -56.1%
Financial assets at fair value through other comprehensive income | 13,290,491 | 12,767,715 | 10,135,530 | 4.1% | 13,290,491 | 12,767,715 | 10,135,530 | 4.1%
Debt securities | 13,290,491 | 12,767,715 | 10,135,530 | 4.1% | 13,290,491 | 12,767,715 | 10,135,530 | 4.1%
Financial assets at amortized cost | 98,155,165 | 90,038,137 | 74,818,710 | 9.0% | 100,365,988 | 91,972,536 | 76,486,958 | 9.1%
Debt securities | 23,248,722 | 20,623,315 | 262,429 | 12.7% | 23,115,245 | 20,497,053 | 883,837 | 12.8%
Loans and advances to banks | 5,572,108 | 6,004,729 | 2,125,746 | -7.2% | 5,566,874 | 5,960,826 | 2,142,421 | -6.6%
Loans and advances to customers | 69,334,335 | 63,410,093 | 55,197,595 | 9.3% | 71,683,869 | 65,514,657 | 56,968,981 | 9.4%
Finance lease receivables | 2,678,181 | 2,321,385 | 2,022,555 | 15.4% | 30,375 | 15,043 | 17,393 | 101.9%
Property and equipment | 1,135,557 | 1,029,795 | 1,025,930 | 10.3% | 1,107,182 | 902,686 | 843,919 | 22.7%
Investment property | 15,343 | 112,198 | 133,035 | -86.3% | 15,342 | 112,198 | 133,035 | -86.3%
Intangible assets | 551,266 | 496,946 | 454,257 | 10.9% | 515,201 | 468,484 | 430,798 | 10.0%
Investments in joint ventures and associates | 34,599 | 38,838 | 30,008 | -10.9% | 25,961 | 25,961 | 25,961 | 0.0%
Current tax assets | 1,068 | 139 | 1,110 | 668.3% | - | - | - | 0.0%
Deferred tax assets | 2,445 | 92,230 | 118,404 | -97.3% | 394 | 90,567 | 115,234 | -99.6%
Assets held for sale and disposal group | 15,204 | 729 | 745,408 | 1985.6% | 15,204 | 729 | 55,383 | 1985.6%
Trade and other receivables | 943,541 | 1,002,936 | 1,522,407 | -5.9% | 939,449 | 995,338 | 1,511,077 | -5.6%
Investments in subsidiaries | - | - | - | 0.0% | 925,316 | 613,371 | 588,105 | 50.9%
Other assets | 213,191 | 261,005 | 299,193 | -18.3% | 127,067 | 115,272 | 159,277 | 10.2%
Total assets | 131,904,347 | 120,804,935 | 108,850,790 | 9.2% | 132,220,902 | 120,676,695 | 108,008,083 | 9.6%

Total assets of the Bank as at 31 December 2025 amounted to RON 132,220,902 thousand, increasing by 9.6% compared to 31 December 2024 (RON 120,676,695 thousand). At BCR
Group level, the total assets increased by 9.2% from RON 120,804,935 thousand as at 31 December 2024 to RON 131,904,347 thousand as at 31 December 2025.
17

| Group | Bank
Liabilities and Equity | 31.12.2025 | 31.12.2024 | 31.12.2023 | 2025/2024 | 31.12.2025 | 31.12.2024 | 31.12.2023 | 2025/2024
Financial liabilities held for trading | 165,342 | 133,740 | 165,467 | 23.6% | 165,342 | 133,740 | 165,467 | 23.6%
Derivative financial instruments held for trading | 165,342 | 133,740 | 165,467 | 23.6% | 165,342 | 133,740 | 165,467 | 23.6%
Financial liabilities measured at amortized cost | 112,153,887 | 104,405,296 | 93,239,094 | 7.4% | 112,668,813 | 104,748,753 | 93,548,921 | 7.6%
Deposits from banks | 2,740,235 | 1,174,726 | 998,503 | 133.3% | 3,262,252 | 1,686,012 | 1,585,724 | 93.5%
Borrowings and financing lines | 439,197 | 533,268 | 650,435 | -17.6% | 108,463 | 127,307 | 152,934 | -14.8%
Deposits from customers | 93,084,106 | 91,007,840 | 78,481,853 | 2.3% | 93,460,301 | 91,281,395 | 78,724,676 | 2.4%
Debt securities issued | 14,246,361 | 10,407,030 | 10,170,143 | 36.9% | 14,246,361 | 10,407,030 | 10,170,143 | 36.9%
Other financial liabilities | 1,643,988 | 1,282,432 | 2,938,160 | 28.2% | 1,591,436 | 1,247,009 | 2,915,444 | 27.6%
Lease liabilities | 591,782 | 500,390 | 449,467 | 18.3% | 590,344 | 498,276 | 448,488 | 18.5%
Provisions | 490,048 | 788,313 | 1,013,883 | -37.8% | 477,507 | 768,162 | 883,960 | -37.8%
Current tax liabilities | 58,994 | 42,508 | 83,339 | 38.8% | 54,373 | 38,260 | 82,494 | 42.1%
Deferred tax liabilities | 22,130 | 25,177 | 21,801 | -12.1% | - | - | - | 0.0%
Liabilities associated with assets held for sale and disposal group | - | - | 560,644 | 0.0% | - | - | - | 0.0%
Other liabilities | 592,575 | 919,357 | 839,541 | -35.5% | 547,340 | 475,339 | 393,487 | 15.1%
Total equity | 17,829,589 | 13,990,154 | 12,477,554 | 27.4% | 17,717,183 | 14,014,165 | 12,485,266 | 26.4%
Attributable to non-controlling interest | 83 | 64 | 56 | 29.7% | - | - | - | 0.0%
Attributable to owners of the parent | 17,829,506 | 13,990,090 | 12,477,498 | 27.4% | 17,717,183 | 14,014,165 | 12,485,266 | 26.4%
Total liabilities and equity | 131,904,347 | 120,804,935 | 108,850,790 | 9.2% | 132,220,902 | 120,676,695 | 108,008,083 | 9.6%

18
6.2 Statement of income

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2023 | 2025/2024 | 31.12.2025 | 31.12.2024 | 31.12.2023 | 2025/2024
Net interest income (1) | 4,746,338 | 4,400,976 | 3,656,406 | 7.8% | 4,549,187 | 4,253,358 | 3,476,006 | 7.0%
Interest income | 6,914,594 | 6,692,846 | 5,897,924 | 3.3% | 6,905,858 | 6,720,942 | 5,860,443 | 2.8%
Other similar income | 518,841 | 242,463 | 137,822 | 114.0% | 357,939 | 77,352 | 2,068 | 362.7%
Interest expenses | -2,459,089 | -2,504,410 | -2,353,145 | -1.8% | -2,487,045 | -2,515,429 | -2,360,740 | -1.1%
Other similar expense | -228,008 | -29,923 | -26,195 | 662.0% | -227,565 | -29,507 | -25,765 | 671.2%
Net fee and commission income (2) | 1,214,169 | 1,128,180 | 1,012,615 | 7.6% | 1,148,886 | 1,071,921 | 966,148 | 7.2%
Fee and commission income | 1,601,850 | 1,450,865 | 1,277,353 | 10.4% | 1,528,033 | 1,387,671 | 1,221,406 | 10.1%
Fee and commission expense | -387,681 | -322,685 | -264,738 | 20.1% | -379,147 | -315,750 | -255,258 | 20.1%
Dividend income (3) | 6,581 | 6,192 | 5,103 | 6.3% | 10,124 | 74,078 | 65,976 | -86.3%
Net trading result (4) | 544,422 | 487,915 | 539,745 | 11.6% | 544,422 | 487,871 | 522,792 | 11.6%
Gains/(losses) from non-trading financial instruments mandatorily measured at fair value through profit or loss (5) | 19,736 | 24,723 | 2,874 | -20.2% | 19,736 | 24,723 | 2,874 | -20.2%
Foreign currency translation (6) | -8,723 | 4,371 | 8,991 | -299.6% | -21,254 | -2,074 | 6,376 | 924.8%
Net result from equity method investments (7) | -4,240 | 8,831 | 6,136 | -148.0% | - | - | - | 0.0%
Rental income from investment properties and other operating leases (8) | 14,237 | 34,543 | 43,796 | -58.8% | 5,266 | 5,346 | 5,455 | -1.5%
Personnel expenses (9) | -1,110,961 | -1,111,044 | -1,072,385 | 0.0% | -1,042,600 | -1,047,484 | -991,002 | -0.5%
Other administrative expenses (10) | -1,013,577 | -900,699 | -749,178 | 12.5% | -997,567 | -890,171 | -732,021 | 12.1%
Depreciation and amortisation (11) | -270,946 | -259,105 | -245,444 | 4.6% | -258,129 | -241,797 | -226,780 | 6.8%
Venituri operationale (1+2+3+4+5+6+7+8) | 4,137,036 | 3,824,883 | 3,208,659 | 8.2% | 3,958,071 | 3,735,771 | 3,095,824 | 6.0%
Cheltuieli operationale (9+10+11) | -2,395,484 | -2,270,848 | -2,067,007 | 5.5% | -2,298,296 | -2,179,452 | -1,949,803 | 5.5%
Rezultat operational | 1,741,552 | 1,554,035 | 1,141,652 | 12.1% | 1,659,775 | 1,556,319 | 1,146,021 | 6.6%
Gains/(losses) from derecognition of financial assets measured at amortized cost | - | -26,881 | -2,282 | -100.0% | - | -26,881 | -2,282 | -100.0%
Other gains/(losses) from derecognition of financial instruments not measured at fair value through profit or loss | -1,307 | -4,127 | - | -68.3% | -1,307 | -4,127 | - | -68.3%
Net impairment gain/ (losses) on financial instruments | -252,408 | -106,342 | -46,308 | 137.4% | -215,199 | -66,482 | 57,884 | 223.7%
Other operating result | 60,533 | -400,038 | -165,045 | -115.1% | 54,159 | -354,175 | -11,299 | -115.3%
Pre-tax result from continuing operations | 3,943,854 | 3,287,495 | 2,995,024 | 20.0% | 3,795,724 | 3,284,106 | 3,140,127 | 15.6%
Taxes on income | -623,763 | -520,072 | -673,800 | 19.9% | -612,089 | -502,354 | -652,784 | 21.8%
Net result for the year | 3,320,091 | 2,767,423 | 2,321,224 | 20.0% | 3,183,635 | 2,781,752 | 2,487,343 | 14.4%
Net result attributable to non-controlling interests | 20 | 8 | 8 | 150.0% | - | - | - | 0.0%
Net result attributable to owners of the parent | 3,320,071 | 2,767,415 | 2,321,216 | 20.0% | 3,183,635 | 2,781,752 | 2,487,343 | 14.4%

19
6.3 Statement of cash flows

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2023 | 31.12.2025 | 31.12.2024 | 31.12.2023
Net result for the year | 3,320,091 | 2,767,423 | 2,321,224 | 3,183,635 | 2,781,752 | 2,487,343
Non-cash adjustments for items in net result for the period |  |  |  |  |  |
Depreciation, amortisation of assets | 270,946 | 259,105 | 245,444 | 258,129 | 241,797 | 226,780
Allocation and release of impairment of loans | 264,734 | 151,197 | 68,035 | 217,176 | 92,061 | -53,932
Gains/(losses) from the sale of property and equipment and investment properties | 3,357 | -8,840 | -22,176 | -7,548 | -12,470 | -23,528
Gain on disposal of non-current assets held for sale and disposal group | -1,808 | -5,747 | 21,276 | -1,808 | -5,145 | -10,933
Other provisions | -221,627 | -16,762 | 5,855 | -212,816 | -18,233 | -8,747
Net impairment of subsidiaries | - | - | - | -352,282 | -25,266 | -97,359
Impairment tangible and intangible assets | 8,106 | 27,309 | -1,488 | 4,098 | 9,568 | -7,288
Impairment of assets held for sale and other assets | 6,293 | 29,509 | 6,782 | 3,855 | 30,758 | 5,893
Current tax not paid | 568,887 | 488,605 | 645,763 | 554,098 | 476,066 | 637,036
Expenses with supplementary turnover tax | 316,070 | 182,460 | - | 307,637 | 181,702 | -
Deferred tax | 54,958 | 31,467 | 28,037 | 57,991 | 26,288 | 15,748
Other adjustments | -225,647 | -94,182 | 8,165 | 198,877 | -59,675 | 19,866
Adjustments for items in net profit/(loss) for the year | -4,752,944 | -4,407,168 | -3,661,421 | -4,559,337 | -4,327,436 | -3,541,982
Interest income from operating activities | -6,273,466 | -6,007,993 | -5,354,422 | -6,112,121 | -5,877,837 | -5,202,944
Interest expense for operating activities | 1,951,161 | 1,801,407 | 1,687,104 | 1,993,547 | 1,836,284 | 1,865,467
Interest income from investing activities | -1,159,995 | -927,316 | -681,324 | -1,151,702 | -920,457 | -659,567
Interest expense for financing activities | 735,937 | 732,926 | 692,236 | 721,063 | 708,652 | 521,038
Dividend income from investing activities | -6,581 | -6,192 | -5,015 | -10,124 | -74,078 | -65,976
Financial assets - held for trading | -1,502,192 | -1,159,563 | -523,845 | -1,502,192 | -1,159,563 | -523,428
Financial assets at fair value through other comprehensive income | -305,283 | -2,649,139 | -115,897 | -305,283 | -2,649,104 | -115,231
Financial assets at amortized cost | -6,232,335 | -13,163,420 | -5,144,158 | -6,369,454 | -13,162,297 | -5,343,079
Loans and advances to banks | 867,944 | -3,231,699 | -1,973,220 | 829,275 | -3,171,122 | -1,908,111
Loans and advances to customers | -6,736,679 | -9,606,457 | -2,880,451 | -7,184,580 | -9,993,512 | -3,427,340
Finance lease receivables | -363,600 | -325,264 | -290,487 | -14,149 | 2,337 | -7,628
Specific supplementary turnover tax paid | -253,895 | -133,907 | - | -245,648 | -133,309 | -
Other assets from operating activities | 36,253 | 58,277 | -93,770 | 2,813 | 50,396 | -19,291
Financial liabilities measured at amortized cost | 4,081,054 | 11,061,355 | 4,372,838 | 4,136,316 | 10,959,001 | 4,492,113
Deposits from banks | 1,618,936 | 240,585 | -405,446 | 1,589,744 | 116,152 | -531,541
Deposits from customers | 2,100,563 | 12,476,497 | 3,461,416 | 2,202,144 | 12,511,285 | 3,689,936
Other financial liabilities | 361,555 | -1,655,727 | 1,316,868 | 344,428 | -1,668,436 | 1,333,718
Income tax paid | -551,351 | -526,717 | -361,907 | -538,136 | -520,939 | -353,540
Other liabilities from operating activities | 45,043 | 41,671 | 21,848 | 79,220 | 33,459 | 43,482
Interest received from operating activities | 6,509,265 | 6,390,970 | 5,500,926 | 6,428,993 | 6,326,847 | 5,436,704
Interest paid for operating activities | -1,995,669 | -1,784,145 | -2,255,205 | -2,022,121 | -1,798,805 | -2,439,780
Cash flow from operating activities | -557,694 | -2,460,242 | 1,066,326 | -683,787 | -2,662,547 | 826,847

20

| Group | Bank
in RON thousands | 31.12.2025 | 31.12.2024 | 31.12.2023 | 31.12.2025 | 31.12.2024 | 31.12.2023
Proceeds of disposal: | 2,620,603 | 2,144,608 | 1,549,988 | 2,600,357 | 2,098,109 | 1,526,958
Debt securities at amortized cost | 2,583,109 | 1,990,682 | 1,435,153 | 2,583,109 | 1,990,682 | 1,435,153
Property and equipment, intangible assets,investment properties and assets held for sale | 37,494 | 97,210 | 113,168 | 17,248 | 50,711 | 90,138
Assets held for sale and disposal group | - | 56,716 | 1,667 | - | 56,716 | 1,667
Acquisition of: | -5,379,127 | -5,219,382 | -3,875,383 | -5,362,717 | -5,200,781 | -3,851,823
Debt securities at amortized cost | -5,084,682 | -4,951,396 | -3,612,225 | -5,084,682 | -4,951,396 | -3,612,225
Property and equipment, intangible assets,investment properties and assets held for sale | -294,445 | -267,986 | -263,158 | -278,035 | -249,385 | -239,598
Interest received from investing activities | 1,042,270 | 758,622 | 628,398 | 1,033,977 | 758,143 | 606,142
Dividends received from investing activities | 6,581 | 6,192 | 5,015 | 10,124 | 74,078 | 65,976
Cash flow from investing activities | -1,709,673 | -2,309,960 | -1,691,982 | -1,718,259 | -2,270,451 | -1,662,747
Additional equity instruments | 1,740,480 | - | - | 1,740,480 | - | -
Capital decrease | - | - | - | 40,336 | - | -
Dividends paid to equity holders of the parent | -1,279,455 | -1,175,306 | -1,144,291 | -1,279,455 | -1,175,306 | -1,144,291
Dividends paid to non-controlling interests | -1,391 | -1,295 | -1,271 | -1,391 | -1,295 | -1,271
Repayment of principal of lease liabilities (IFRS 16) | -117,184 | -116,257 | -192,237 | -106,668 | -100,708 | -171,740
Debt securities issued | 3,705,250 | 223,835 | 4,572,136 | 3,705,250 | 223,835 | 4,572,136
AT1 coupon | -109,030 | -67,105 | -44,168 | -109,030 | -67,105 | -44,168
Outflows from other financing activities | -127,288 | -149,302 | -25,488 | -27,012 | -33,538 | -45,504
Interest paid for financing activities | -745,337 | -732,926 | -524,956 | -721,063 | -708,652 | -353,758
Debt securities issued | -745,337 | -732,926 | -345,899 | -721,063 | -708,652 | -345,899
Other financing activities | - | - | -179,057 | - | - | -7,859
Cash flow from financing activities | 3,066,045 | -2,018,356 | 2,639,725 | 3,241,447 | -1,862,769 | 2,811,404
Cash and cash equivalents at beginning of period | 10,642,241 | 16,763,792 | 15,224,576 | 10,596,153 | 16,724,913 | 15,224,262
Cash flow from operating activities | -557,694 | -2,460,242 | 1,066,326 | -683,787 | -2,662,547 | 826,847
Cash flow from investing activities | -1,709,673 | -2,309,960 | -1,691,982 | -1,718,259 | -2,270,451 | -1,662,747
Cash flow from financing activities | 3,066,045 | -2,018,356 | 2,639,725 | 3,241,447 | -1,862,769 | 2,811,404
Other non-cash movements in the statement of financial positions | - | 667,007 | -474,853 | - | 667,007 | -474,853
Cash and cash equivalents at end of period | 11,440,919 | 10,642,241 | 16,763,792 | 11,435,554 | 10,596,153 | 16,724,913

21
7. Annexes
The following documents are annexed to this report:
1. The bank's constitutive act valid at 31 December 2025;
2. List of the subsidiaries of the Bank and entities controlled or controlling the Bank;
3. Statement of Compliance of the members of the Executive Committee who assume responsibility for the
preparation of the Financial Statements;
4. Financial Statements as at 31 December 2025;
5. Auditors' report.
Chairman of the Supervisory Board,
Manfred Wimmer
22
Annex 1: The Bank's constitutive act valid at 31 December 2025
The bank's constitutive act valid at 31 December 2025 is available at following web address:
https://cdn0.erstegroup.com/content/dam/ro/bcr/www_bcr_ro/EN/About-us/Corporate-Governance/BCR_Charter.pdf
23
Annex 2: List of the subsidiaries of the issuer and entities controlled or controlling the
issuer
List of the subsidiaries of the issuer and entities controlled by the issuer
• BCR Leasing IFN SA
• BCR Pensii, Societate de Administrare a Fondurilor de Pensii Private SA
• BCR Banca pentru Locuinte SA
• Suport Colect SRL
• BCR Payments Services SRL
• BCR Seed Starter SRL (is not included in the prudential consolidation perimeter as it is below the materiality
threshold)
List of the of entities controlling the issuer
The ultimate parent of the Group is Erste Group Bank AG.

Banca Comercială Română S.A. Societate administrată în sistem dualist www.bcr.ro Șoseaua Orhideelor nr. 15D, Clădirea The Bridge 1, etajul 2, Sector 6, București, cod poștal 060071 contact.center@bcr.ro Sună la BCR: *2227 apelabil din orice rețea din România; + 4021.407.42.00, apelabil din orice rețea din România sau din străinătate Înmatriculată la Registrul Comerţului: J40/90/1991 Înmatriculată la Registrul Instituțiilor de Credit: Nr. RB-PJR-40-008/18.02.1999 Cod Unic de Înregistrare: RO 361757 Capital Social: 1.625.341.625,40 lei SWIFT: RNCB RO BU

STATEMENT
According to the articles 30 and 31 of the Accounting Law no. 82/1991
The “Separate and Consolidated Financial Statements” as at December 31 st, 2025 for the Group Banca Comercială Română
(the Group) and for the bank individually (Bank) have been prepared in accordance with National Bank of Romania Order
no. 27/2010 for the approval of the Accounting Regulations compliant to International Financial Reporting Standards,
applicable to credit institutions, as subsequently amended and supplemented.
We, Sergiu Cristian Manea as Executive President and Elke Meier as Executive Vicepresident of Banca Comercială Română
SA, undertake the responsibility for the preparation of the Separate and Consolidated Financial Statements as at 31.12.2025
and we confirm the following:
a) The accounting policies applied for the preparation of the separate and consolidated financial statements for the year
ended 2025 are in accordance with accounting regulations applicable to credit institutions, correspondingly in
accordance with the NBR’s Order no. 27/2010;
b) The Annual Separate and Consolidated Financial Statements reflect a true and fair view of the financial position,
financial performance and further information related to the activity of the Bank and the Group;
c) Banca Comercială Română SA prepared its Financial Statements and carry on their business on a going concern basis.
d) The Consolidated and Separate Administrators’ Report includes an analysis of the development, performance and risks
related to the Group's and the Bank's activity. The Consolidated Sustainability Statement is an integral part of the
Administrators' Report and was prepared in accordance with Order 1/2024 on the amendment and completion of Order
27/2010.

Executive President, | Executive Vicepresident,
Sergiu Cristian Manea | Elke Meier