Strong franchise in Austria and Central and Eastern European (CEE) countries. Solid operating revenue from traditional customer-led retail and commercial banking operations. Strong liquidity and funding profile dominated by granular and sticky retail deposits. Challenging operating conditions because of the COVID-19 pandemic. Uncertainties in the build-up of higher additional loss-absorbing capital (ALAC) buffers amid stressed capital markets. The stable outlook on Austria-based Erste Group Bank AG (Erste) reflects S&P Global Ratings' view that Erste will manage the risks it faces in the coming 12-24 months. This includes our opinion that economic risk for the Austrian banking system could increase over the medium term because of the pandemic-related slowdown, and weakening operating conditions in Erste's core strategic CEE markets. We could
