BAWAG Group

Q2 '23 early read

02 July, 2023

July 02, 2023 |

BAWAG Group AG

IMPORTANT DISCLAIMER

The data contained in this presentation is an early read and, thus, remains subject to change. BAWAG will publish detailed H1/2023 results on 19 July 2023. This presentation is prepared solely for the purpose of providing general information about BAWAG Group, Wiedner Gürtel 11, 1100 Wien. The information does not constitute investment or other advice or any solicitation to participate in investment business. This presentation does not constitute an offer or recommendation to purchase any securities or other investments or financial products. In respect of any information provided past performances do not permit reliable conclusion to be drawn as to the future performances. BAWAG Group does not make any representation, express or implied, as to the accuracy, reliability or completeness of the information contained in this presentation. BAWAG Group disclaims all warranties, both express and implied, with regard to the information contained in this presentation. This presentation contains forward-looking statements relating to the business, financial performance and results of BAWAG Group or the industry in which BAWAG Group operates. These statements may be identified by words such as "expectation", "belief", "estimate", "plan", "target" or "forecast" and similar expressions, or by their context. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements and neither BAWAG Group nor any other person accepts any responsibility for the accuracy of the opinions expressed in this presentation or the underlying assumptions. No obligation is assumed to update any forward-looking statements. In no event shall BAWAG Group be liable for any loss, damages, costs or other expenses of any kind (including, but not limited to, direct, indirect, consequential or special loss or loss of profit) arising out of or in connection with any use of, or any action taken in reliance on, any information contained in this presentation. BAWAG Group assumes no obligation for updating the provided information in this presentation. The content in this presentation are not to be relied upon as a substitute for professional advice. This presentation shall not be forwarded to any third party.

July 02, 2023 |

BAWAG Group AG

2

P&L

Q2 '23 P&L items

Developments Q2 '23

Core revenues

Q1'23: €366m

Operating expenses

Q1 '23: €(119)m

Risk costs

Q1'23: €(21)m

Regulatory charges

Q1 '23: €(41)m

Profit before tax

Q1'23: €186m

Net profit

Q1'23: €140m

+5%

+1%

stable

+€3m net release

>€240m

>€180m

  • Net interest income increasing in line with previous quarter trend.
  • Net commission income remaining broadly stable.
  • Operational expenses including impact of the collective bargaining agreement (effective as of April).
  • Management overlay remaining at €100m.
  • Net release of € 3m in the second quarter due to a lower than expected contribution to the single resolution fund.

Q2 '23 RETURN KPIs

Return on tangible common equity

>25%

Cost-income ratio

<32%

July 02, 2023 |

BAWAG Group AG

3

Balance sheet development

Q2 '23 Asset development

Q2 '23 Liability development

Interest-bearing assets

Q1'23: €43.2b

Retail & SME assets

Q1'23: €.22.2b

Corporate, Real Estate & Public sector assets Q1'23: €14.3b

Cash & Cash equivalents

Q1'23: €11.8b

NPL ratio/volume

Q1'23: 0.9% / €547m

-2%

-1%

-3%

~20% of balance sheet

stable

Customer funding

Q1 '23: €42.9b

Customer deposits

Q1'23: €32.5b

Retail & SME deposits Q1 '23: €27.1b

Corporates, Real Estate &

Public sector deposits

Q1'23: €5.4b

Liquidity Coverage Ratio

Q1'23: 215%

TLTRO

Q1'23: €3.3b

+6%

+1%

+1%

+2%

~200%

Redeemed €2.8b in Q2'23

July 02, 2023 |

BAWAG Group AG

4

Capital development

Q2 '23 Capital

CET1 ratio

~14.7%

Q1'23: 14.1%

Excess capital

>€300m after

Q1'23: €190m

planned share buyback and

(after planned buyback and dividend accruals)

dividend accruals

Capital management framework

1We target a dividend payout of 55% of net profit

2Additional capital will be allocated to business growth, M&A, minority and/or platform investments.

3Any additional capital, not used for organic growth or M&A, will be allocated to share buybacks and/or special dividends

Q2 '23 developments

Capital

  • Strong capital generation in Q2 … CET1 ratio ~14.7%
  • Excess capital above management target of 12.25% of >€300m (post planned share buyback and dividend accruals)
  • Maintaining dry powder for potential M&A
  • Additional capital distributions will be assessed with Full Year-results

Share buyback

  • Application for share buyback of €175m filed early June with the ECB
  • Regulatory approval process on track
  • Execution expected in second half 2023

July 02, 2023 |

BAWAG Group AG

5

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BAWAG Group AG published this content on 03 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 July 2023 10:24:57 UTC.