Erste Bank JPMorgan Merrill Lynch International

Banker’s blanket bond
The Banker’s Bond is tailored insurance coverage that Wiener Städtische AG offers to banks. It
covers internal and external fraud.
Capital consolidation
The acquisition costs are offset against the pro rata share of the equity capital of the subsidiary.
Cash flow statement
Presents the changes in cash and cash equivalents during a fiscal year, broken down into the
three areas:
ordinary operations,
investing activities, and
financing activities.
Certificated liabilities
Debt instruments (bonds etc.) and other liabilities for which negotiable certificates have been
issued.
Claim settlement costs
Expenses, that are causally related to the settlement of the claim, but which can not be directly
allocated.
Closing Date
The closing date is expected to occur on or about May 13, 2008.
Contingent liabilities
Liabilities that are not recognized as they have a low probability of occurrence, for example crossliabilities
due to letters of intent.
Corridor method
In this method for pension plans, the actuarial profits/losses are not immediately recognized. The
accrued profits/losses will duly be amortized after they have left the corridor, starting in the following
year. The corridor is 10% of the present value of the earned pension claims or the assets of the
pension fund, whichever is greater.
Cost-of-sales method
Insurance company expenses are allocated – and reported under the corresponding items –
according to causation to the functional areas of claims settlement, policy writing, operations, asset
management and expenses for benefits to third parties.
Current service cost
The net expense incurred in conjunction with a defined benefit pension plan, less the beneficiary’s
contributions to the pension plan, if applicable.
Damage frequency
The number of damage events relative to the number of insured risks.
Default risk
Default risk is the risk that one party to a transaction will fail to discharge an obligation and cause
the other party to incur a financial loss.
G-2