BAWAG : April 26, 2021 - Earnings Presentation Q1 2021

Q1 2021 Earnings

Anas Abuzaakouk, CEO

Enver Sirucic, CFO

26 April 2021

Q1 2021 Highlights and segment performance

Detailed financials

Supplemental information

Group Overview & Strategy

26 April 2021 | BAWAG Group AG

2

Highlights Q1 2021

EARNINGS

BALANCE SHEET

• CAPITAL
  OUTLOOK

• Net Profit of €74m in Q1 '21, EPS of €0.83, and RoTCE of 10.2% (normalized: 14.3%)
• Pre-provisionprofit of €179m and CIR at 40.5%
• Risk cost of €29m … no ECL reserves released
• Regulatory charges of €54m representing 90% of full year charge
• Customer loans +3% and interest-bearing assets +2% vYE
• CET1 ratio (post dividend) of 14.2%, up 20bps vYE
• Dividend distributions … Paid €40m dividend in Q1 '21, plan to pay €420m dividends (€4.72 per share) in Q4 '21 subject to AGM / regulatory approvals, and accrued €37m Q1 '21 dividend
• Additional excess capital of €382m (post-dividend deductions) above 12.25% CET1 target
• Target 2021: RoTCE >13% and CIR <41%
• Medium-termtargets: RoTCE >15% and CIR <40%
• €420m dividends (€4.72 per share), to be proposed to AGM in Q4 '21 (after ECB announcement)
• Signed deal to acquire DEPFA Bank plc, closing expected in H2 '21 … capital accretive Day 1
• Capital Markets Day moved to November 2021

26 April 2021 | BAWAG Group AG

3

Financial performance

Key highlights

P&L | € millions		Q1 '21		Q1 '20		vPY		Q4 '20		vPQ
Core revenues	297	292	2%	298	-
Operating income	301	296	2%	302	-
Operating expenses	(122)	(125)	(3%)	(145)	(16%)
Pre-provision profit	179	171	5%	158	14%
Regulatory charges	(54)	(36)	49%	(6)	789%
Risk costs	(29)	(55)	(47%)	(45)	(35%)
Profit before tax	96	81	20%	107	(10%)
Net profit	74	61	20%	83	(11%)

Ratios		Q1 '21		Q1 '20		vPY		Q4 '20		vPQ
RoCE	8.6%	7.5%		1.1pts	9.7%		(1.1pts)
RoTCE	10.2%	9.1%		1.1pts	11.5%		(1.3pts)
CIR	40.5%	42.3%		(1.8pts)	47.9%		(7.4pts)
Risk cost ratio	0.29%	0.58%		(0.29pts)	0.44%		(0.15pts)

Balance Sheet & Capital | € millions Q1 '21	Q4 '20	vPQ
Total assets						52,975			53,128			-
Interest-bearing assets						41,260			40,410			2%
Customer loans						33,015			32,004			3%
Customer deposits						32,041			32,415			(1%)
Common Equity						3,439			3,423			-
Tangible Common Equity						2,899			2,871			1%
CET1 Capital						2,838			2,807			1%
Risk-weighted assets						20,053			20,072			-
CET1 Ratio (post dividend)						14.2%			14.0%			0.2pts
Per share data	Q1 '21		Q1 '20		vPY			Q4 '20	vPQ
Earnings (€)	0.83	0.69	19%	0.93	(11%)

														Book value (€)	38.70	36.84			5%				38.93	(1%)
	Normalized											Tangible book value (€)	32.62	30.41			7%				32.65	-
	Net profit	103	79	31%	76	35%		Shares outstanding (€ m)	88.9	87.9			1%				87.9	1%
	RoCE	12.0%	9.6%		2.4pts	8.9%		3.1pts
	RoTCE	14.3%	11.6%		2.7pts	10.6%		3.7pts
Note:All equity, capital, ratios and per share data reflect deduction of remaining €420m earmarked dividend from 2019/2020 profits as well as €37m dividend accrual for Q1 '21
26 April 2021 | BAWAG Group AG																							4

Capital development … CET1 ratio

Strong capital position

~+40bps

(Q1 '21 gross capital generation)

							16.5%
					b	2.1%
14.0%	0.4%	a	(0.2%)	14.2%	a	0.2%
YE 2020	Earnings		Dividend	Q1 2021	Dividend	Q1 2021
			accrual			accrual	pre-
							dividend

(FL)

Capital distribution plans

• €40m dividend paid in Q1 '21 in line with ECB recommendation

→a €37m dividends accrued based on dividend policy for Q1 '21 earnings

→b €420m dividends (€4.72 per share) relating to

2019/2020 profits to be distributed in Q4 '21*

Capital development

• +40bps gross capital generation; RWAs flat

Excess capital

• Additional excess capital €382m (post-dividend deductions) above 12.25% CET1 target

Other items

• City of Linz receivable fully provisioned through prudential filter in 2020 with no impact on capital distribution plans in worst-case scenario

*subject to shareholder and regulatory approvals.

26 April 2021 | BAWAG Group AG

5