Contents. Bank Austria at a Glance 3

Interim Report at 31 March 2011

Contents Bank Austria at a Glance 3 Interim Report at 31 March 2011 4 The banking environment in early 2011 4 Bank Austria in the first quarter of 2011 6 Financial position and capital resources 12 Development of business segments 13 Outlook 20 22 Statement of Comprehensive Income for the first quarter of 2011 22 Statement of Financial Position at 31 March 2011 24 Statement of Changes in Equity 25 Statement of Cash Flows 26 Notes to the Consolidated Financial Statements 27 Statement by Management on the Interim Report 54 Additional Information 55 Investor Relations, ratings, imprint, notes 55 2

Staff *) 31 march 2011 31 dec. 2010 +/ Offices *) 31 march 2011 31 dec. 2010 +/ Bank Austria at a Glance Income statement figures Q1 2011 Q1 2010 +/ Net interest 1,128 1,081 4.3% Net fees and commissions 462 470 1.7% Net trading, hedging and fair value income 114 76 50.2% Operating income 1,801 1,695 6.3% Operating costs 950 911 4.4% Operating profit 851 784 8.5% Profit before tax 449 296 52.0% Net profit attributable to the owners of Bank Austria 341 242 41.1% Volume figures 31 march 2011 31 dec. 2010 +/ Total assets 190,301 193,049 1.4% Loans and receivables with customers 128,553 130,093 1.2% Primary funds 127,775 127,839 0.0% Equity 17,400 17,476 0.4% Risk-weighted assets (overall) 122,045 127,906 4.6% Key performance indicators Q1 2011 2010 Return on equity after tax (ROE) 8.0% 4.5% Cost/income ratio 52.8% 52.3% Risk/earnings ratio 31.9% 39.1% Provisioning charge/avg. lending volume (cost of risk) 1.16% 1.44% Marginal Economic Value Added 66 m 194 m Marginal RARORAC 2.67% 2.28% Total capital ratio (based on all risks, end of period) 12.33% 12.13% Tier 1 capital ratio 10.71% 10.35% Tier 1 capital ratio without hybrid capital (Core Tier 1 capital ratio) 10.38% 10.04% Bank Austria (full-time equivalent) 59,670 59,653 0.0% Central Eastern Europe business segment 51,579 51,616 0.1% Other business segments 8,091 8,037 0.7% Austria 7,932 7,889 0.5% *) Employees of companies accounted for under the proportionate consolidation method are included at 100%. Bank Austria 3,033 3,033 0.0% Central Eastern Europe business segment 2,734 2,734 0.0% Other business segments 299 299 0.0% Austria 297 298 0.3% *) Offices of companies accounted for under the proportionate consolidation method are included at 100%. 3

Interim Report at 31 March 2011 The banking environment in early 2011 In the first quarter of 2011, the global economy showed a favourable underlying trend while being affected by persistent structural imbalances and new uncertainties: the worldwide upswing driven by industry was gaining momentum. As the year started better than expected, economists raised various growth forecasts for 2011. Following the renewed upswing, the business cycle entered its second more moderate phase. The strong regional variations seen in the previous year continued to exist: combined economic performance in the industrial countries is climbing at a much lower rate than in earlier business cycles, the output gap persists, and employment is lagging behind. This means that growth is mainly driven by the emerging markets: the catching-up process is intensifying the reallocation of resources from the industrial countries to the new growth centres; strong capital inflows and rising commodity prices reflect this shift in emphasis. Crude oil prices rose by 21% to US$ 115.1 per barrel (Brent) in the first quarter of 2011, reaching a level that was almost 40% higher than in March 2010; the broad commodity price index (S&P GS) gained 13% in the first three months of 2011 and was up by 34% on the previous year; also in euro terms, external factors gave strong impetus to price increases. Divergent trends were seen both among and within the large aggregates. In the US, the first quarter of 2011 was again disappointing, mainly because of domestic demand. This means that the zero-rate monetary policy and quantitative easing will remain in place for the time being. The euro area as a whole probably achieved economic growth of 0.6% compared with the preceding quarter and 2.2% over the previous year, but this reflects developments moving at two speeds. The core industrial countries saw strong growth driven by industry and gaining broad momentum, especially in Germany, where GDP is estimated to have been up by 4% on the previous year. In the southern part of the European Union, structural and financial problems curbed economic growth. This pattern of economic developments particularly in the US and the euro area determined the financial market situation. Expectations of the interest rate turnaround had a strong influence in the course of the second half of 2010. In the first quarter of 2011, short-term and medium-term market rates anticipated the first increase in the ECB s key interest rate, which was effected as at 13 April 2011. Long-term benchmark interest rates also rose strongly (with the increase in euro interest rates being more pronounced than in the US dollar), putting an end to a multi-year bull market in bonds. The interest rate cycle was initiated despite the continued debt crisis, the dependence of some highly exposed banking sectors, and the real divergence within the euro area. This asynchronous pattern affected the US dollar, which depreciated against the other world currencies by 4.2% in the first quarter of 2011 and by 7.6% by the end of April 2011, and against the euro by 5.6% and 8.3%, respectively. Fears in connection with the relaxed US monetary policy were also reflected in the sharp rise in the price of gold, which at the end of March 2011 was US$ 1,423 per ounce, up by 86% on a year earlier, and reached US$ 1,541 per ounce at the end of April. Apart from the stronger economic trend and the turnaround in interest rates, continued uncertainties and new disturbances influenced investors decisions. The European government debt crisis continued to smoulder. More intensive use was made of the rescue scheme (now also by Portugal) and the range of instruments was widened. However, scepticism among lenders as to whether debt service capacity can be restored through cost savings, bridge loans and various guarantees alone has increased. Most recently, Greek government bonds were quoted at about 70% for two-year (residual) maturities and about 55% for tenyear maturities. The natural catastrophe in Japan, followed by the disaster at a nuclear power station, caused uncertainty for some time in the middle of March to say nothing of human grief and sorrow; the medium-term consequences, e.g. for the primary energy mix in Europe, are still unclear. The world stock index started the year in an upbeat mood; following the setback around the middle of March, the index at the end of that month was up by 2.7% on the year-end 2010 level and 7.2% higher than a year earlier. CEE stock markets achieved disproportionately strong improvements (MSCI Emerging Europe +6.2% in Q1 2011 and +17.7% year-on-year). The Austrian economy got off to an excellent start in 2011, thanks to strong export performance and a pick-up in investment activity. In the first three months, the Bank Austria Business Indicator remained at a level last seen in autumn 2007. We expect that GDP rose strongly, by 0.9%, in the first quarter of 2011 compared with the preceding quarter, an increase which would correspond to 3.4% growth in a year-on-year comparison. On this basis we raised our growth forecast for Austria for 2011 from 2.3% to 2.8%. Output, especially for exports, has expanded significantly in recent months, and the level of capacity utilisation in Austrian industry has risen to a level which is considerably higher than the multi-year average. Investment projects postponed in the past are now being implemented and employment is rising. This means that the domestic economy, including private consumption, is now also making a contribution to growth again. The only sector which has not experienced any significant recovery is the construction industry. Overall, economic growth still tends to be a return to normal rather than a boom. Accordingly, credit expansion remained weak. Growing inflationary pressure, persistent uncertainty in the fiscal area, disturbances, and last but not least, the turnaround in interest rates prompted Austrian investors to act with pronounced restraint in the first quarter of 2011. 4

Interim Report at 31 March 2011 The economies in Central and Eastern Europe again achieved growth around the turn of the year. With the exception of Romania, they started 2011 at high levels of activity, with growth ranging between 1% and 1.5% in the first quarter. Developments varied considerably, reflecting local production patterns and confirming the trends seen in the previous year. Economic activity in the CIS countries is benefiting from the global rise in energy prices, though this effect is offset by strong increases in food prices. The recovery of domestic demand in these countries has nevertheless made good progress, with unemployment declining significantly and real incomes rising. Economic developments in the Czech Republic and in Slovakia, and also in Hungary, still benefit from strong industrial activity in the core European countries and are unaffected by disturbances in the global production chain (automotive industry, Japan). Domestic demand has become an engine of growth in these countries as well. Turkey is far ahead in the business cycle and is now in the moderate middle phase; the country records the strongest increases in wages and salaries (after the CIS region). To ward off speculative capital inflows, Turkey s central bank reduced interest rates and took determined quantitative action (including stricter minimum reserve requirements) which also affected credit expansion. But for most countries, rising commodity prices and food prices have become the main factors creating uncertainty; in some instances, higher prices also reflect increases in the rate of value added tax. After two years of dramatic reductions, current account deficits are now beginning to widen as the oil bill rises. But this effect is mitigated by capital imports, which have hesitantly started to flow again later than in other world regions thanks to improved fundamentals. The recovery in SEE is still fragile; this applies also to Romania and partly to Bulgaria. There are signs of a shift away from a relaxed monetary policy. In Serbia, such measures were taken not least to support the dinar. After strong appreciation in the first half of 2010, CEE currencies as a whole started to depreciate against the euro in summer 2010. On the average for the first quarter of 2011, the index (weighted by contribution to Bank Austria s operating profit) fell back to the level seen a year earlier ( 0.3%; based on equal weightings, +0.4%). Currency movements against the US dollar more or less reflected this trend, mainly because currency baskets guide movements in major currencies (including the Russian rouble and, informally, Kazakhstan, Ukraine); but a year-on-year comparison shows that overall changes were not significant (chart). The currencies of Russia and Kazakhstan (oil, gas) and Ukraine (steel) appreciated against the euro compared with the previous year. The Czech currency showed the strongest increase (+6%) due to capital inflows. This compared with currency depreciation in Croatia and Serbia. The value of the Turkish lira also declined against the euro, not least due to specific measures to fend off speculative inflows. Overall, currency movements have only a small impact on a year-on-year comparison of Bank Austria s income statement for the first quarter of 2011. CEE currency movements Index 2009 average = 100, weekly levels and quarterly averages 108 106 104 102 100 98 96 Appreciation/depreciation against the euro, weighted by contribution to CEE operating profit of Bank Austria (excluding Poland) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 5

Interim Report at 31 March 2011 Bank Austria in the first quarter of 2011 Overview Bank Austria got off to a good start in 2011, making up for the weak fourth quarter of 2010 and achieving the best quarterly performance in two years. Net profit attributable to the owners of Bank Austria for the first quarter of 2011 was 341 m, up by 41% on the previous year (Q1 2010: 242 m); adjusted for changes in the consolidation perimeter (Q1 2010 restated), the increase was 56%. The result for Q4 2010 was close to zero ( 14 m) due to impairment losses on goodwill and a higher provisioning charge. This dip in performance has been overcome: net profit even exceeded the figure for the third quarter of 2010 (see chart). Earnings are still lagging behind the pre-crisis levels, in terms of absolute amount, growth and profitability. These developments show that the very low level around the turn of 2009/2010 is now behind us and the return to normal has made good progress. When interpreting the year-on-year comparison, one should not forget that the banking sector had just emerged from the serious recession and its impact a year before (base effect). After the strong recovery in the first half of 2010, subsequent quarterly trends reflected a steady yet flat increase in lending volume (see chart). Operating performance in customer business i.e. net operating profit after net write-downs of loans and provisions for guarantees and commitments of the Austrian customer business segments and the CEE business segment also improved from quarter to quarter Quarterly trends in the past two years m 550 500 450 128 Average lending volume 125 123 400 392 411 350 341 326 2) 302 300 286 250 282 242 200 217 2) 150 100 139 129 50 Performance generated by the bank as a whole = net profit attributable to the owners of Bank Austria 0 50 14 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 124 128 Net operating profit of customer business segments 1) 467 470 129 129 bn 130 129 128 127 126 125 124 123 122 121 1) Customer business segments = Austria (F&SME, PB and CIB) and CEE = Bank Austria without Corporate Center. / 2) Difference = operating profit of Corporate Center, restatement difference; provisions for risks and charges, integration costs, net income from investments, and goodwill impairment; income tax and non-controlling interests. Large impairment losses on goodwill in Q2 2010 and Q4 2010 513 129 533 from the end of 2009 onwards; this was only interrupted by a higher provisioning charge for CEE in Q4 2010. Net profit for the bank as a whole moved more or less in line with this development. However, in Q2 and Q4 2010, the income statement additionally reflected large impairment losses on goodwill. In the first quarter of 2011, a good operating performance, including a decline in net write-downs of loans and provisions for guarantees and commitments, fed through to bottom-line profits as non-operating items returned to more normal levels following the exceptional charges in the preceding quarter. Profit before tax in the first quarter of 2011 reached 449 m, an increase of over one-half (+52%) compared with the same period of the previous year. A comparison with restated figures for Q1 2010 (with comparative figures being adjusted to the current Group structure, mainly by excluding the contribution from UniCredit CAIB, which was sold in June 2010) shows that profit before tax for the first quarter of 2011 was up by 74% from the particularly low Q1 2010 figure. The increase was due in equal measure to a higher operating profit and a lower provisioning charge (+ 66 m and + 63 m, respectively), and non-operating items (including the addition to provisions for risks and charges) were also lower. As a result of the higher charge for income tax, net profit attributable to the owners of Bank Austria increased at a lower rate than profit before tax, but still grew strongly (by 99 m or 41%, on an adjusted basis: 56%). Year-on-year comparison Q1 11 Q1 10 +/ m +/ % +/ % r) Operating profit 851 784 +66 +8% 14% Net write-downs of loans and provisions for guarantees and commitments 376 439 +63 14% 14% Net operating profit 475 345 +130 +38% +54% Profit before tax 449 296 +154 +52% +74% Net profit attributable to the owners of Bank Austria 341 242 +99 +41% +56% r) restated: Q1 2010 adjusted to the current Group structure. At overall bank level, the restated figures mainly exclude UniCredit CAIB AG, which was sold within UniCredit in June 2010. The change since the fourth quarter of 2010 shows a similar pattern. The higher provisioning charge in Q4 2010 and the goodwill impairment losses between profit before tax and net profit makes the profit improvement appear even more significant. Quarter-on-quarter comparison Q1 11 Q4 10 +/ m +/ % Operating profit 851 824 +26 +3% Net write-downs of loans and provisions for guarantees and commitments 376 526 +150 28% Net operating profit 475 299 +176 +59% Profit before tax 449 266 +184 +69% Net profit attributable to the owners of Bank Austria 341 14 +355 n.m. 6

Interim Report at 31 March 2011 A regional analysis shows that both of the two large sectors of Bank Austria s operations the Austrian business segments and CEE contributed to the improvement in operating performance compared with the same period of the previous year. Austrian customer business developed more steadily and was affected in the first quarter of 2011 by changes in the interest rate environment and a slight increase in the provisioning charge. Net operating profit generated by Austrian customer business in Q1 2011 declined by 10% compared with the preceding quarter despite a positive trend but was still up by 39% on a year earlier. The CEE business segment matched the performance achieved in Q3 2010 and made up for the large provisioning charge in the preceding quarter; net operating profit generated in Q1 2011 therefore improved by about one-third over the same period of the previous year. Net operating profit m 550 500 450 400 350 300 250 200 150 100 50 0 Customer business segments (Bank Austria without Corporate Center) Q2 Central Eastern Europe Austrian customer business Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 Customer business segments = Austria (F&SME, PB and CIB) and CEE = Bank Austria without Corporate Center Since the end of 2009, volume at Bank Austria has shown an upward trend again (measured against average loans to customers, up by 4% compared with the same period of the previous year), although expansion in the past few quarters has been modest. Growth was again driven by the CEE Division, where volume rose by 10%. At 190.3 bn, total assets were down by 1.4% from year-end 2010 and 5.3% lower than at the end of March 2010, with the proportion of customer business continuing to rise on the assets side and on the liabilities side. Leverage (without intangible assets) declined further, to 13.6 in March 2011; a year earlier, the leverage ratio based on the same definition was 14.9. Capital ratios rose strongly as a result of the capital increase carried out a year ago, and they have continued to improve since then: at the end of March 2011, the Tier 1 capital ratio pursuant to the Austrian Banking Act was 10.71% (31 March 2010: 10.35%); the Core Tier 1 capital ratio (excluding hybrid capital) was 10.38% (31 March 2010: 10.01%). The total capital ratio reached 12.33% after 12.37% (based on all risks). Details of the income statement Operating income of Bank Austria in the first quarter of 2011 was 1,801 m, matching the level of the preceding quarter and exceeding the Q1 2010 figure by 6% or 106 m. Based on a comparison with the figures restated to reflect the current consolidation perimeter and the current segment structure, the increase is 10%. (At overall bank level, most of this adjustment relates to the exclusion of UniCredit CAIB, which was sold in June 2010.) Contributions to the increase in operating income came from the Austrian customer business segments Family & SME Banking (F& SME), Private Banking (PB) and Corporate & Investment Banking (CIB) and from the Central Eastern Europe business segment (CEE), with increases of 7% each. The strongest growth compared with the previous year was achieved in net interest, which rose by 46 m or 4% (up by 6% compared with the restated Q1 2010 figure). At 1,128 m, net interest remains by far the most important income component. Given the rather flat underlying development of volume, net interest was mainly determined by the trend and structure of market interest rates in the past few months. The interest margin, reflecting the increase in short-term and medium-term market rates, declined from 368 basis points (bp) in Q3 2010 to 355 bp in Q4 2010 and most recently to 349 bp (measured as a proportion of average lending volume); it was slightly higher than a year earlier (Q1 2010: 344 bp). In CEE, although volume rose, net interest was lower as the interest margin declined in the past two quarters; nevertheless, the figure for the first quarter of 2011 was up by 4% on Q1 2010. Austrian customer business recorded a weak volume trend, especially in corporate banking, while the interest margin remained stable. Quarterly trends in the Family & SME Banking Division (F& SME), whose business is characterised by high levels of deposits, and in the Corporate & Investment Banking Division (CIB) with its disproportionately large lending business moved in opposite directions, a pattern that is typical of the early phase of the interest rate cycle. Overall, net interest in Austria was 1% below the figure for the preceding quarter (i.e. more or less stable in view of the lower number of interest days) and 2% higher than in the first quarter of the previous year. Our new Group-wide format for the condensed income statement shows the individual income components without calculating subtotals. If net interest, dividends and other income from equity investments are added up according to previous practice to arrive at net interest income, the figure for the first quarter of 2011 shows an increase of 5% over the same period of the previous year. Net fees and commissions amounted to 462 m and thus accounted for 26% of operating income. After several good quarters in 2010, net fees and commissions recently fell back (down by 10% from Q4 2010) to a level that was 2% lower than a year earlier. 7

Interim Report at 31 March 2011 In CEE the strong expansion of fee-based business in previous years was interrupted (down by 8% from the preceding quarter, but up by 5% on Q1 2010); this was partly due to the seasonal pattern discernible after the end of 2010. The situation in Austria was stable. Quite generally, commercial services including payment and card transactions supported fee and commission income while turnover in securities business was affected by renewed uncertainty among investors. Despite the far-reaching restructuring of financial market trading activities, net trading, hedging and fair value income improved substantially compared with Q1 2010 and Q4 2010. At 114 m, it was up by one-half (+ 38 m) on the comparative figure for the previous year. In this context, two effects should be noted in connection with the sale of UniCredit CAIB in 2010: in the first quarter of 2010, CAIB generated a positive trading result, which was no longer included later in the year. On the other hand, Bank Austria has since the middle of 2010 participated in profits of the Markets product line of UniCredit s CIB Division, and this participation offsets the income lost as a result of the Group-internal bundling of activities. Net trading, hedging and fair value income generated by the customer business segments, which is not affected by the effects described above (restated and without the Corporate Center), was 42 m for the first quarter of 2011, up by 39 m from a year earlier, with Austria and CEE accounting for equal contributions to the increase. This is a noteworthy development because after the restructuring, most of the net trading performance is generated by customer-driven business. In the fourth quarter of 2010, net trading, hedging and fair value income in the customer business segments was even higher, at 71 m. Operating costs were reduced by 3% to 950 m in the first quarter of 2011 compared with Q4 2010; as a result, the year-onyear increase was only 40 m or 4%. Without the (pro-rata) expense for the bank levies in Hungary and Austria, operating costs rose by 1%. This means that we cushioned the effect of additional burdens by applying stringent cost management. The cost/income ratio continued to decline to 52.8%, or 51.3% without the bank levy (after 54.3% in Q4 2010 and 53.7% in Q1 2010). If operating costs are adjusted for those associated with the former UniCredit CAIB, the increase is 6.6% (or 3.5% without the bank levy). Given the lower staff intensity of the former investment bank UniCredit CAIB, the adjusted cost/ income ratio would have been 54.4% in the first quarter of 2010, making the reduction of the cost/income ratio even more significant (with a decline of 3.1 percentage points instead of 1.6 percentage points, excluding the bank levy). In the three Austrian customer business segments, operating costs were 3% higher than in the same period of the previous year, one of the reasons being the employment initiatives launched in the F&SME Division. In CEE, the increase (without the bank levy) was over 4%. The cost/income ratio in CEE (45.9%) was considerably lower than in Austrian customer business (54.0%). 2010 saw a decline in net write-downs of loans and provisions for guarantees and commitments which started to ease the burden on the income statement. After a temporary interruption by a weaker Q4 2010, the favourable trend continued in early 2011. We believe that the improvement is sustainable, apart from the usual quarterly fluctuations. The provisioning charge for the bank as a whole was 376 m in the first quarter of 2011, down by 150 m or 28% from Q4 2010 and 63 m or 14% lower than in Q1 2010 (see table below). The cost of risk (provisioning charge as a proportion of average lending volume in the period) recently fell to 116 basis points (116 bp = 1.16%); the peak level was 215 bp in Q4 2009. Over one-quarter (27%) of net write-downs of loans and provisions for guarantees and commitments in the first quarter of 2011 related to Austria while CEE accounted for close to three-quarters (mainly booked locally, partly at the Vienna-based CEE headquarters, but always in the CEE business segment). In Austria, the provisioning charge in Q1 2011 was higher than in the third and fourth quarters of 2010. This was due to developments in the CIB Division while the provisioning charge in the F&SME Division declined steadily. The CIB Division, which serves large corporate customers, nevertheless recorded a satisfactory trend reflecting the economic environment: the low level of net write-downs of loans and provisions for guarantees and commitments in quarterly periods of 2010 is explained by the reduction of large-volume provisions made a year earlier. Apart from this, the quarterly trend presents a steady development at a relatively low level, with the cost of risk in CIB recently being only 44 bp. In the F&SME Division, which has included small and medium-sized enterprises (SMEs) since the beginning of 2011 (figures for 2010 restated), quality improvements achieved in the previous year in the Small Businesses sub-segment were maintained the provisioning charge for this sub-segment had declined by onehalf in 2010. The Swiss franc, which had strengthened against the euro in the previous year, depreciated again. This effect helped to ease the situation in business with private customers, together with numerous debt rescheduling arrangements. The cost of risk in F&SME in Q1 2011 was 102 bp, down by 32 bp from a year earlier. Net write-downs of loans and provisions for guarantees and commitments Q1 11 Q4 10 Q1 10 Bank Austria as a whole 1) 376 526 439 Austria 2) 102 77 123 CEE 274 449 316 Cost of risk (basis points) 3) Bank Austria as a whole 116 bp 165 bp 142 bp Austria 2) 64 bp 48 bp 76 bp CEE 167 bp 286 bp 211 bp 1) Business segment figures restated, no difference compared with original figures at overall bank level. / 2) Three customer business segments plus Corporate Center. / 3) Provisioning charge / average loans to customers (net). 8

Interim Report at 31 March 2011 In the CEE business segment, the general impression is that the crisis has been overcome. It should be noted, however, that the various countries are at different stages of the business and credit cycles, and therefore individual exceptional charges may still be seen in future quarterly periods. Yet the negative impacts will probably taper off. At 274 m in the reporting period, net write-downs of loans and provisions for guarantees and commitments declined to a level close to that seen at the end of 2008 ( 215 m). (In the following commentary, the charge resulting from guarantees provided by the Vienna-based CEE headquarters is allocated to the countries to which the guarantees relate.) The provisioning charge for Kazakhstan, Ukraine and the Baltic countries in the first quarter of 2011 was close to 100 m compared with 163 m in the same period of the previous year. The situation in these countries seems to stabilise; they account for about 10% of lending volume in CEE and 36% of net write-downs of loans and provisions for guarantees and commitments. South-East Europe (SEE), lagging behind in the credit cycle in 2010 and in the early part of 2011, currently presents a mixed picture: while the provisioning charge in Romania rose only slightly compared with the previous year, the cost of risk was still relatively high (316 bp); Bulgaria experienced a further significant deterioration (but at 261 bp, the cost of risk in that country was lower in absolute terms). In Croatia, on the other hand, the provisioning charge declined by 46% and the cost of risk fell to 82 bp. The situation in Russia also improved visibly, in line with the economic environment (provisioning charge down by 20%, cost of risk below 100 bp). Turkey, which is ahead of other countries in the cycle, is a special case: benefiting from a strong economic momentum, the turnaround in Turkey took place a year ago. In the first quarter of 2010, there was a net release of loan loss provisions following large recoveries on loans previously written down. Despite a return to normal in the first quarter of 2011 (with a provisioning charge of 12 m), the cost of risk at the bank in Turkey was still at the lower end of the scale, at 43 bp, even better than in Austria. The NPL ratio, i.e. non-performing loans measured as a percentage of gross lending volume, stabilised at 4.6% compared with the yearend 2010 level (previous year: 3.6%). At the end of March 2011, the NPL coverage ratio was 64.7%, slightly higher than in December 2010 (62.6%). The proportion of impaired loans, the broadest definition of problem loans, rose further (see table), a development which was exclusively due to the implementation of reporting rules in CEE, namely the obligation to continue to report a loan which has been successfully restructured as impaired for at least another year. This rule which is stricter than the relevant Austrian regulations became applicable to CEE loans for the first time at the beginning of 2011. All of the increase in impaired loans resulted from this methodological adjustment and this leads to a statistical break in the time series. As writedowns on restructured loans represent a much lower proportion of the gross amounts, the coverage ratio declined but this decrease was not due to any underlying negative change. This means that the reporting period saw a decline in the provisioning charge and no further deterioration in asset quality. Asset quality END OF PERIOD MARCH 2011 DEC. 2010 MARCH 2010 Loans to customers (gross), bn 135.6 137.0 132.6 Write-downs, bn 7.1 6.9 6.1 Impaired loans (gross) 13.3 1) 12.5 10.1 as a percentage of loans to customers 9.8% 9.1% 7.6% covered by specific write-downs 46.8% 48.4% 52.8% of which: non-performing loans 6.2 6.4 4.8 as a percentage of loans to customers 4.6% 4.6% 3.6% covered by specific write-downs 64.7% 62.6% 70.3% 1) Break in time series due to regulatory change relating to CEE (see commentary). Net operating profit for the first quarter of 2011 was 475 m, up by 130 m or 38% (restated: 54%) on the Q1 2010 figure. An item to be deducted from net operating profit is the net addition to provisions for risks and charges, which amounted to 32 m and was down by 39 m from the comparative figure for the previous year. Among the other non-operating items, integration costs were unchanged at 1 m and net income from investments was 8 m, down by 15 m from the Q1 2010 figure, which included one-off gains on a sale recorded at a consolidated subsidiary (card complete). As non-operating items to be deducted were lower, profit before tax for the first quarter of 2011 rose more strongly than net operating profit, by 154 m or 52% to 449 m. Income tax was 89 m, more than double the amount for the same period of the previous year, giving an effective tax rate of almost 20% (Q1 2010: about 12%). Non-controlling interests (previously: minority interests) declined by 1 m to 13 m. The new format of the income statement combines items related to equity interest management, i.e. the Purchase Price Allocation (PPA) effect and goodwill impairment, in order to present the bank s performance without the accounting impact of valuation measures. Net profit attributable to the owners of Bank Austria before PPA amounted to 347 m, an increase of 101 m or 41% over the same period of 2010. In contrast to Q4 2010, the effects from Purchase Price Allocation and goodwill impairment in the first quarter of 2011 and in Q1 2010 were very low. Therefore bottom-line profit, i.e. net profit attributable to the owners of Bank Austria, was 341 m, an increase of 99 m or 41% (restated: +56%) over the previous year. 9

Interim Report at 31 March 2011 Condensed income statement of Bank Austria 1) CHANGE OVER CHANGE OVER Q1 2010 rest 2) Q4 2010 Q1 2011 Q1 2010 m IN % IN % Q4 2010 m IN % Net interest 1,128 1,081 +46 +4% +6% 1,142 15 1% Dividend income and other income from equity investments 50 36 +14 +39% +38% 14 +36 +250% Net fees and commissions 462 470 8 2% 2% 511 49 10% Net trading, hedging and fair value income 114 76 +38 +50% >100% 49 +65 >100% Net other expenses/income 47 31 +16 +52% +32% 54 7 14% Operating income 1,801 1,695 +106 +6% +10% 1,802 1 0% Payroll costs 496 480 16 +3% +6% 491 6 +1% Other administrative expenses 386 359 27 +7% +9% 421 +35 8% Recovery of expenses 0 0 0 38% 39% 1 0 55% Amortisation, depreciation and impairment losses on intangible and tangible assets 69 72 +3 4% 4% 67 1 +2% Operating costs 950 911 40 +4% +7% 978 +28 3% Operating profit 851 784 +66 +8% +14% 824 +26 +3% Net write-downs of loans and provisions for guarantees and commitments 376 439 +63 14% 14% 526 +150 28% Net operating profit 475 345 +130 +38% +54% 299 +176 +59% Provisions for risks and charges 32 71 +39 54% 54% 33 +1 3% Integration costs 1 1 +0 20% 19% 1 +0 19% Net income from investments 8 22 15 65% 64% 1 +7 >100% Profit before tax 449 296 +154 +52% +74% 266 +184 +69% Income tax for the period 89 36 53 >100% >100% 56 33 +60% Profit for the period 360 260 +101 +39% +52% 210 +151 +72% Non-controlling interests 13 14 +1 6% 6% 13 0 +1% Net profit before PPA 3) 347 246 +101 +41% +56% 197 +150 +76% Purchase Price Allocation effect 4) 4 4 +1 13% 13% 2 1 +59% Goodwill impairment 3 0 3 n.m. n.m. 208 +206 99% Net profit 3) 341 242 +99 +41% +56% 14 +355 n.m. n. m. = not meaningful 1) Bank Austria s income statement as presented in this table is a reclassified format corresponding to the format used for segment reporting. / 2) Restated: comparative figures for 2010 adjusted to the current Group structure. At overall bank level, the restated figures mainly exclude UniCredit CAIB AG, which was sold within UniCredit in June 2010. / 3) Attributable to the owners of Bank Austria. / 4) PPA effects for Kazakhstan, Ukraine, Russia and Aton. 10

Interim Report at 31 March 2011 Volume, profitability and resources Average loans and receivables with customers of Bank Austria as a whole rose steadily in the past year, with faster growth seen in the first six months and a slower increase from the middle of 2010. Exchange rate movements were one of the factors contributing to this development: strong appreciation was followed by a trend reversal in the final quarters, and these trends were reflected in CEE currency translation and varying movements in the main currencies against the euro. In the three Austrian business segments, average loans to customers declined slightly, while CEE recorded a strong increase compared with the same period of the previous year (see table below). Resources and profitability in Q1 2011 compared with Q1 2010 bank austria AUSTRIA 1) cee Relative size Average loans to customers ( bn) 2) 129.3 63.5 65.57 Change over previous year (Q1/Q1) +4.2% 1.6% +9.8% Average RWAs under Basel 2 ( bn) 2) 125.0 41.3 78.8 Change over previous year +8.1% +4.6% +11.2% Operating income 1,801 612 1,161 Change over previous year +9.8% +7.1% +7.2% Profitability and value creation ROE before tax 3) 10.3% 19.3% 12.1% Marginal EVA, m 4) 66.0 54.8 74.3 Marginal RARORAC 2.67% 6.97% 4.64% Equity Average equity ( bn) 5) 17.5 3.8 11.7 Change over previous year +11.9% +44.0% 7.8% 1) Family & SME Banking, Private Banking and Corporate & Investment Banking (CIB) Divisions; the difference of the total amount is shown in the Corporate Center (see page 46 of this report. / 2) Restated. / 3) ROE = profit before tax / institutional capital. / 4) Calculated on the basis of capital allocated under Basel 2. Difference = Corporate Center and inter-segment items, sum total calculated using bank s own cost of capital. 5) Subsidiaries are included at actual IFRS capital. Quite generally, risk-weighted assets (RWAs) are characterised by swings from quarter to quarter, making the underlying trends look more pronounced. In 2010, RWAs increased significantly from quarter to quarter. In the first quarter of 2011 they were 8.1% higher than a year earlier, despite the strong decline from Q4 2010 to Q1 2011. As usual, CEE recorded a dynamic increase (+11.2%), and RWA growth in Austria was also significant, at 4.6%. The latter was due to the particularly strong growth in the F&SME Division in the course of the previous year, when exchange rate movements led to a disproportionately large increase in volume and calculated risk level. This development partly reversed in the first quarter of 2011 as the exchange rate situation eased and model parameters under Basel 2 in the risk-weight calculation for business with private customers were adjusted. A more favourable risk profile and refined measurement methodologies were among the factors enabling the bank to make this adjustment. Return on equity (ROE before tax = profit before tax/allocated equity, subsidiaries with institutional capital) in the first quarter of 2011 was 10.3%, up from a year earlier (7.6%) but still far below the long-term average (2005 2009: 14.0%). In the first quarter of 2011, Economic Value Added (marginal EVA, calculated on the basis of capital required in accordance with the target Tier 1 capital ratio) reached 66 m at overall bank level, with the contributions from Austria and CEE being more balanced again. A comparison of average figures for IFRS equity in Q1 2010 and Q1 2011 shows the effect of the capital increase carried out in the previous year (the year-end 2009 figure before the capital increase was used in calculating the average figure for Q1 2010). bank austria austria 1) CEE GBS+ CORPorate CenTeR 2) Employees (FTEs) End of March 2011 59,670 5,544 51,579 2,547 End of 2010 (restated) 59,653 5,549 51,598 2,506 Change +16 4 19 +40 Branches End of March 2011 3,033 299 2,734 End of 2010 (restated) 3,033 298 2,735 Change 0 +1 1 1) F&SME, Private Banking and Corporate & Investment Banking (CIB) Divisions 2) GBS = Global Banking Services plus remaining part of Corporate Center The number of branches of Bank Austria did not change in the first quarter of 2011. Staff numbers rose slightly, by 16 FTEs, but this development reflects larger changes. The number of employees in the Czech Republic, Russia and Kazakhstan rose by about 100 FTEs, an increase which was more than offset by a decline in Ukraine and normal staff turnover in other countries. In Austria, there was an organisational shift from support functions in customer business segments to Service Lines of the Corporate Center. Initiatives have been launched for increasing staff numbers in the sales network in Austria. 11

Interim Report at 31 March 2011 Financial position and capital resources Financial position in the first quarter of 2011 Total assets declined by 1.4% to 190.3 bn from year-end 2010 to 31 March 2011, and by 5.3% compared with the end of March 2010. The structure of the financial position continued to improve, as in the previous year. The improvement is reflected in the growing proportion of customer business on the assets side and the liabilities side. On the assets side, cash and cash balances decreased ( 26.5%), as did loans and receivables with banks ( 7.2%), developments which are quite usual for the period following the end of a year. Financial assets held for trading declined further ( 12.7%) from the previous year. Hedging derivatives fell 11.3% below the level at yearend 2010, while financial market investments increased by 7.8%, partly as a result of market valuations. Loans and receivables with customers contracted by 1.2% to 128.6 bn, a development reflecting the most recent exchange rate developments among the major currencies. Loans and receivables with customers as a percentage of total assets continued to rise, to 67.6% (after 67.4% at yearend 2010); a year ago the figure was 63.0%. Interbank business also contracted on the liabilities side ( 4.2%), together with financial liabilities held for trading ( 16.4%) and hedging derivatives ( 32.5%). A slight 1.8% decline in deposits from customers (relating primarily to time deposits) to 98.5 bn was offset by an increase in debt securities in issue (up by 6.3% to 29.3 bn), so that primary funds i.e. deposits from customers and debt securities in issue remained unchanged at 127.8 bn and accounted for 67.1% of total liabilities and equity. This means that loans and receivables with customers are covered by primary funds to the extent of 99%. As at 31 March 2011, equity amounted to 17.4 bn; the marginal 0.4% or 77 m decline over year-end 2010 resulted from income and expenses recognised in equity ( 70 m): the net profit for the first quarter of 2011 was more than offset by a swing of foreign currency translation and reserves in accordance with IAS 39 into negative territory. The leverage ratio, pursuant to UniCredit standards and the cash concept (without intangibles), continued to improve slightly from 13.8 at the end of 2010 to 13.6 in March 2011; in the same period of the previous year the figure was 14.9. The basic leverage ratio (equity/total assets) was 10.9 (after 11.0 and 11.6). Capital resources pursuant to the Austrian Banking Act Risk-weighted assets (RWAs) as at 31 March 2011 were 122.0 bn, down by 5.9 bn ( 4.6%) from year-end 2010. The change resulted primarily from the adjustment of risk parameters ( 5.3 bn) and also from a decline in market risk ( 1.0 bn). While several banking subsidiaries switched to the internal ratingsbased (IRB) approach, this had a very small net effect in terms of RWAs: a 10.8 bn increase in the IRB portfolio was more or less offset by a 10.4 bn decrease in the portfolio under the standardised approach. As a result of lower RWAs, the capital requirement for credit risk declined to 8.7 bn (down by 4.3%) and the capital requirement for all types of risk was 9.8 bn (down by 4.6%). Net capital resources as at 31 March 2011 were 15.0 bn, down by 0.5 bn or 3.1% from the year-end 2010 level. The decline resulted mainly from negative consolidation effects and a lower amount of subordinated capital eligible for inclusion. Although net capital resources declined, capital ratios as at 31 March 2011 improved compared with the end of 2010, reflecting the higher proportion of the decline in RWAs. The Core Tier 1 capital ratio (Tier 1 capital ratio without hybrid capital) based on all risks rose from 10.04% to 10.38%. The Core Tier 1 capital ratio based on credit risk improved from 11.33% to 11.69%. Capital ratios 31 MARCH 2011 31 DEC. 2010 based on all risks 1) Tier 1 capital ratio 10.71% 10.35%... without hybrid capital (Core Tier 1 capital ratio) 10.38% 10.04% Total capital ratio 12.33% 12.13% based on credit risk 2) Tier 1 capital ratio 12.05% 11.68%... without hybrid capital (Core Tier 1 capital ratio) 11.69% 11.33% Total capital ratio 12.87% 12.67% 1) Credit risk, operational risk, position risk and settlement risk. / 2) Capital resources less requirement for the trading book and for commodities risk, exchange rate risk and operational risk as a percentage of the risk-weighted assessment basis for credit risk. 12

Interim Report at 31 March 2011 Development of business segments Family & SME Banking (F&SME) Q1 2011 Q1 2010 1) CHANGE Operating income 296 292 +5 +2% Operating costs 214 208 6 +3% Operating profit 83 84 1 2% Net write-downs of loans 55 69 +14 20% Net operating profit 27 15 +13 +86% Profit before tax 29 25 +4 +16% Loans to customers (avg.) 21,751 20,657 +1,094 +5% Risk-weighted assets (avg.) 2) 14,429 10,840 +3,589 +33% Average equity 3) 1,298 754 +544 +72% 1) For segment reporting purposes, the comparative figures for 2010 were restated to reflect the structure and methodology of the reporting period 2011 (see the segment reporting section in the notes to the consolidated financial statements on pages 44 to 51 of this report. / 2) Average risk-weighted assets under Basel 2 (all risks). / 3) Standardised capital; capital allocation to subsidiaries reflects actual IFRS capital. The difference compared with the consolidated equity of the Bank Austria Group is shown in the Corporate Center. See segment reporting section on pages 46 to 51. This information applies to all business segment tables. The Family & SME Banking (F&SME) *) business segment got off to a good start in 2011 after a weaker second half-year in 2010: the last nine months have seen a marked improvement in net operating profit, which reached 27 m for the first quarter of 2011. This is 86% higher than the relatively good figure for Q1 2010. Factors which contributed to this achievement over the past quarterly periods were the trend in operating income and in particular the continued improvement in asset quality. Volume growth in loans and deposits was moderate and revenue trends were closely linked to market rate movements, especially as the turnaround in interest rates which was confirmed by the ECB in April had been having an impact on margins and on the financial decisions of customers since autumn 2010 (in summer 2010 interest rate levels and the interest rate structure had passed their multi-year low). Net interest was consequently 4% up on the preceding quarter and, at 178 m, it almost returned to the favourable level of Q1 2010 ( 1%). As is usual at the beginning of an interest rate cycle, an underlying factor in this development were pronounced movements in lending business and deposit business: lending volume held up well; sustained growth in construction and housing finance was offset by declines in short-term loans and consumer loans for which there was less demand from households in light of the favourable trend in incomes and the interest rate environment. On the deposits side, volume rose slightly compared with Q1 2010, including that of medium and long-term deposits. Interest rate trends therefore led to an increase in margins on the deposit side and a decrease in margins on the lending side, parallel developments which more or less offset each other. Net fees and commissions also improved in the first quarter of 2011 (+6% over Q4 2010 and +3% over Q1 2010). This reflects successful placements of the bank s own bond issues, with income from other feebased business remaining more or less unchanged. Operating income rose to 296 m in the first quarter of 2011, which is 5% up on the Q4 2010 figure and 2% up on Q1 2010. After deduction of operating costs, which fell slightly over the preceding quarter and were only 3 % higher than in Q1 2010, operating profit came to 83 m compared with 65 m in Q4 2010 and 84 m in Q1 2010. In a situation characterised by stable revenues, an improvement in net write-downs of loans and provisions for guarantees and commitments had a decisive positive impact on the Division s overall performance. Net write-downs of loans and provisions for guarantees and commitments have been steadily declining for about one year. This development has been supported by the economic upturn, the gradual improvement in employment and incomes, and, most recently, by the trend reversal in exchange rates. In Q1 2011 the provisioning charge totalled 55 m, 20% down on the Q1 2010 figure. The cost of risk was 102 basis points (bp) in the reporting period (Q1 2010: 134 bp). The strong 13 m or 86% rise in net operating profit compared with Q1 2010 was partly offset by a 9 m decline in net income from investments (one-off gain on a sale recorded at a consolidated subsidiary in 2010). For this reason, profit before tax ( 29 m) did not rise as strongly compared with Q1 2010 (+ 4 m or 16%). Turnaround in interest rates % p.a. 3.5 3.0 2.5 2.0 1.5 1.0 0.5 10-year 5-year 2-year Money market (3 months) *) Since the beginning of 2011, F&SME has comprised not only the Mass Market, Affluent and Small Businesses sub-segments but also small and medium-sized enterprises (SMEs) with a turnover between 3 m and 50 m. Segment reporting was retrospectively adjusted to this new structure, so that a comparison with previous year s figures can be made on a consistent basis. 0.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 13