BAWAG : Ergebnispräsentation Q3 2022 Ergebnisse (nur auf Englisch verfügbar)

BAWAG Group Q3 2022 Results

19 October 2022

August19 October20212022| BAWAG| BAWAGGroup AGroup AG

Highlights Q3 2022

	-	Q3 '22 incorporates full write-off of City of Linz receivable of €254m in risk cost (€190m after tax)
	- Q3 '22 (including City of Linz): Net loss of €(58)m and EPS €(0.66)
EARNINGS	-	Adjusted Q3 '22 (excluding City of Linz): Net profit of €132m, EPS of €1.49, and RoTCE of 19.3%
	- Pre-provision profit of €218m (+17% vPY) and CIR at 35.1%
	- Risk costs of €35m, of which €12m related to ECL management overlay that stands at €82m
	- Average customer loans flat vPQ and +9% vPY
BALANCE SHEET &	-	CET1 ratio at 13.0% … deducting €325m buyback and €207m dividend accrual (55% adjusted net profit)

CAPITAL	- Bank positioned for rising interest rate environment that will materialize in the coming quarters
	- Solid credit performance across the business … NPL ratio 1.0% with management overlay ~1x annual risk costs
	- Execution of €325m share buyback started on 25 July with ~65% executed as of October 18
OUTLOOK	- Maintaining dry powder to address potential organic and inorganic opportunities in the coming quarters
- Reconfirmed 2022 targets (adjusted): Profit before tax >€675m, RoTCE >17%, and CIR < 38%
	- Updating outlook for core revenue growth to ~9% in 2022

19 October 2022 | BAWAG Group AG

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Financial performance

P&L | € million			Q3'22		Q3'22		vPY			YTD '22		YTD'22		vPY
		reported		adjusted				reported		adjusted
Core revenues	335	335	10%	986	986	9%
Operating income	336	336	9%	993	993	9%
Operating expenses	(118)	(118)	(2%)	(357)	(357)	(2%)
Pre-provision profit	218	218	17%	636	636	16%
Regulatory charges	(3)	(3)	(21%)	(49)	(49)	(19%)
Risk costs	(290)	(35)	64%	(340)	(86)	15%
Profit before tax	(73)	181	12%	249	504	22%
Net profit	(58)	132	7%	186	377	19%

Balance Sheet & Capital | € million Total assets Interest-bearing assets (average) Customer loans (average) Customer deposits (average) Common Equity Tangible Common Equity CET1 Capital Risk-weighted assets CET1 Ratio (post dividend)

Q3'22	Q2'22	vPQ	vPY
55 997	55 029	2%	3%
44 733	44 530	-	8%
36 804	36 764	-	9%
34 219	33 558	2%	3%
3 207	3 351	(4%)	(11%)
2 678	2 820	(5%)	(12%)
2 764	2 699	2%	(7%)
21 343	21 326	-	5%
13.0%	12.7%	0.3pts	(1.7pts)

Ratios		Q3'22		Q3'22		vPY		YTD '22		YTD'22		vPY
	reported		adjusted			reported		adjusted
RoCE	(7.1%)	16.2%		2.3pts	7.6%	15.4%		3.4pts
RoTCE	(8.5%)	19.3%		2.9pts	9.1%	18.4%		4.2pts
CIR	35.1%	35.1%		(4.1pts)	35.9%	35.9%		(4.0pts)
Risk cost ratio	2.59%	0.32%		0.11pts	1.04%	0.26%		0.02pts
Earnings per share (€)	(0.66)	1.49	8%	2.10	4.24	20%

Per share data Book value (€) Tangible book value (€) Shares outstanding (€ m)

Q3'22	vPQ	Q3'21	vPY
37.57	-	40.46	(7%)
31.38	(1%)	34.43	(9%)
85.34	(4%)	88.86	(4%)

Note: All equity, capital, ratios and per share data reflect deduction of €207m dividend accrual and €325m buyback for Q3 2022 figures. "Adjusted" view excludes write-off of City of Linz receivable of €254m (€190m after tax).

19 October 2022 | BAWAG Group AG

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Capital development and distribution

QUARTERLY CAPITAL DEVELOPMENT

		0.1%	(0.1%)	13.3%
			(0.3%)	13.0%
	0.6%
12.7%				f
				CET1 Target:
						12.25%
						Capital
						requirement:
						9.14%
Q2 2022	Earnings	City of Linz	OCI/other	Q3 2022	Capital	Pro-forma
	a	b	c		distribution	Q3 2022

YTD CAPITAL DEVELOPMENT

CAPITAL DEVELOPMENT

-a Gross capital generation ~+60bps in Q3 '22 / +180bps YTD '22 -b Write-off fully provisioned in regulatory capital in prior years -c OCI primarily related to widening credit spreads and volatility -d RWA increase due to organic business growth and FX

M&A and CAPITAL DISTRIBUTION

e- Acquisition of Sberbank assets (consumer loan & bond portfolio) -f Accrual based on dividend payout ratio of 55%* (dividend policy) g- Share buyback of €325m in 2022 … ~65% completed

15.0%

1.8%

0.1%

(0.5%)

(0.5%)

15.8%

(0.3%)

EXCESS CAPITAL

f

(1.0%)

13.0%

g

(1.5%)

‒

CET1 ratio 13.0% post buyback of €325m

‒

Excess capital of ~€150m to our management target of 12.25%

‒ Maintain dry powder for potential organic and inorganic

opportunities in coming quarters

FY 2021

Earnings

City of Linz

OCI/other

RWA

Q3 2022

M&A

Capital

Pro-forma

*based on adjusted net profit

a

b

c

d

e

distribution

Q3 2022

19 October 2022 |

BAWAG Group AG

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Retail & SME

Financial performance

Customer development

€ million		Q3'22		Q3'21		vPY		Q2'22		vPQ
Core revenues	255.8	229.8	11%	254.1	1%
Net interest income	190.5	165.4	15%	184.1	3%
Net commission income	65.3	64.4	1%	70.0	(7%)
Operating income	257.6	230.5	12%	254.7	1%
Operating expenses	(85.5)	(87.6)	(2%)	(85.2)	-
Pre-provision profit	172.1	142.9	20%	169.5	2%
Regulatory charges	(1.4)	(0.9)	56%	(6.0)	-
Risk costs	(23.4)	(15.5)	51%	(20.4)	15%
Profit before tax	147.3	126.5	16%	143.1	3%
Net profit	110.5	94.9	16%	107.3	3%

Ratios

in %		Q3'22		Q3'21		vPY		Q2'22		vPQ
RoCE	28.3%	24.3%		4.0pts	27.5%		0.8pts
RoTCE	33.3%	28.2%		5.1pts	32.5%		0.8pts
CIR	33.2%	38.0%		(4.8pts)	33.5%		(0.3pts)
NPL ratio	1.9%	1.9%	-	1.9%	-
Risk cost ratio	0.42%	0.30%		0.12pts	0.37%		0.05pts

€ million	Q3'22	Q3'21	vPY	Q2'22	vPQ
Housing loans	16 160	15 602	4%	16 109	-
Consumer and SME	6 348	5 204	22%	6 244	2%
Total assets	22 508	20 806	8%	22 353	1%
Total assets (average)	22 488	20 618	9%	22 049	2%
Risk-weighted assets	9 500	8 055	18%	9 452	1%
Customer deposits	28 075	26 882	4%	28 045	-
Customer deposits	27 823	27 069	3%	28 145	(1%)
(average)

Q3 '22 net profit of €111m, up 17% vPY due to higher pre-provision profits … average net asset growth +9% vPY driven by consumer loans and housing loans

Pre-provision profit of €172m for Q3 '22, up 21% vPY ... Core revenues up 11% and operating expenses down (2%)

Risk costs of €(23)m in Q3 '22, up 51% vPY … €(17)m core run rate with addition of Sberbank consumer loan portfolio in Q2 '22… Added €(6)m management overlay to address future uncertainty

Continuing to execute on various operational and strategic initiatives to drive efficiency and disciplined profitable growth across our Retail & SME franchise

Subdued loan growth vPQ given overall cautious consumer sentiment and significant movement in rates

19 October 2022 | BAWAG Group AG

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