BAWAG Group AG · VIE:BG
BAWAG — Shareholder Meeting (August 2021)
19 slides from BAWAG's shareholder meeting presentation, Aug 27, 2021
Slide 1: Annual General Meeting 2021
Annual General Meeting 2021 27 August 2021 27 August 2021 | BAWAG Group AG
Slide 2: Highlights 2020
Highlights 2020 FINANCIALS CAPITAL STRATEGY Simplification of our €3.19 (32%) CET1 ratio of 14.0% at year-end 2020 organizational structures: vPY post-dividend accrual EPS ‒ full integration of easybank AG into BAWAG P.S.K. in 2020 €284m (38%) €460 million dividends earmarked ‒ integration of Südwes
Slide 3: Share price development
Share price development Indexed 2020 performance 2021 YTD performance BAWAG Group (6%) BAWAG Group +33% EuroStoxx Banks Index (SX7E) (23%) EuroStoxx Banks Index (SX7E) +31% 120 Stoxx 600 Banks Index (SX7P) (24%) 140 Stoxx 600 Banks Index (SX7P) +26% ATX (13%) ATX +29% 110 +33% 130 +31% 100 (6%) +29%
Slide 4: 10% RoTCE during a pandemic
10% RoTCE during a pandemic Solid operating performance a result of having transformed our business over the years SOLID PRE-PROVISION PROFIT & BUSINESS MODEL WITH FOCUS ON PRUDENT PROVISIONING DEVELOPED MARKETS & SECURED LENDING As of FY 2020 711 653 653 Strong pre-provision profit Pre-provision 0.
Slide 5: Strategy remained unchanged
Strategy remained unchanged Generated ~10% RoTCE during a severe economic downturn in 2020 Growing in our Drive efficiency through core markets operational excellence 2021 Targets: RoTCE ~15% CIR ~40% Focus on Maintaining a safe and Customer Centricity secure risk profile 27 August 2021 | BAWAG Grou
Slide 6: Further embedding ESG into our strategy
Further embedding ESG into our strategy Progress during 2020 – 2021 in our ESG initiatives SOCIAL ENVIRONMENT SOCIAL GOVERNANCE ‒ Reducing own scope 1 and scope 2 CO2 ‒ Women target quota introduced in Q1 ’21: ‒ Continuously integrated ESG into our emissions mid-term … switch to 100% 33% in Supervis
Slide 7: New Management Board Member
New Management Board Member Effective since 1 July 2021 Anas Abuzaakouk David O‘Leary Chief Executive Officer Chief Risk Officer ‒ Newly created role of Chief Administrative Officer for all legal, compliance, and Enver Sirucic Andrew Wise regulatory affairs across the Deputy Chief Executive Officer
Slide 8: New Supervisory Board Set-up
New Supervisory Board Set-up For (re-)election Shareholder representatives Egbert Fleischer Frederick Haddad ‒ Expanding the Supervisory Chairman Chairman of the Risk & Board by two new nominees Credit committee for election ‒ If the required majority is present for all proposed Kim Fennebresque res
Slide 9: Agenda
Agenda 01 HIGHLIGHTS & COVID-19 UPDATE 02 CAPITAL DISTRIBUTION 03 FINANCIAL DEVELOPMENTS 2019 & 2020 27 August 2021 | BAWAG Group AG 9
Slide 10: Capital generation 2020
Capital generation 2020 Highly capital accretive business model despite pandemic ~180bps (FY’20 gross capital generation through earnings) 16.3% 0.1% 14.4% 1.8% (2.3%) 14.0% €175m AT1 and €200m Tier2 issued during Q3 ‘20 to fill AT1 & T2 buckets following the 12.25% CET1 target change in composition
Slide 11: Capital distribution for 2019/2020 dividends
Capital distribution for 2019/2020 dividends Capital distribution for 2019/2020 in 2021 Background €230m €230m €88m Dividend policy of 50% payout ratio €88m special dividend proposed for 2020 as appreciation for shareholders’ patience during pandemic €142m Paid €40m dividend in Q1 ’21 in line with r
Slide 12: Capital distribution update as of Q2 '21
Capital distribution update as of Q2 ‘21 Consistent average annual capital generation through earnings +220bps since 2017 ~480 bps = €955m Total Excess capital 17.0% “Earmarked dividends” 1 Dividends of €515m deducted from CET1 capital … pre-dividend €3.42b 1 256 bps = €515m – €420m dividends relati
Slide 13: Agenda
Agenda 01 HIGHLIGHTS & COVID-19 UPDATE 02 CAPITAL DISTRIBUTION 03 FINANCIAL DEVELOPMENTS 2020 & 2021 27 August 2021 | BAWAG Group AG 13
Slide 14: Major P&L & balance sheet items 2020
Major P&L & balance sheet items 2020 Profit before tax €370m Total assets €53b (39%) +16% Customer Core revenues €1,171m €32b +1% loans +5% Customer Pre-provision profit €653m €32b (8%) deposits +7% Tangible common equity €2.9b Provisions (€225)m +224% (excl. €460m earmarked dividends) +5% 27 August
Slide 15: Financial performance 2020
Financial performance 2020 FINANCIALS KPI‘S CAPITAL UPDATE P&L | € millions 2020 vPY 2020 2019 Core revenues 1.171 1% €175m AT1 and €200m Tier 2 capital issued in Cost-income Q3 ’20 to fill the buckets following the 44.3% 42.7% Operating income 1.172 (5%) ratio changes in our P2R composition Operati
Slide 16: Recent developments - Highlights Q2 2021
Recent developments - Highlights Q2 2021 • Net Profit of €119m in Q2 ’21, EPS of €1.34, and RoTCE of 16.3% EARNINGS • Pre-provision profit of €181m and CIR at 40.1% • Risk cost of €24m … no ECL reserves released • Average customer loans stable vPQ and +3% vPY BALANCE SHEET • CET1 ratio (post dividen
Slide 17: Financial performance
Financial performance Key highlights P&L | € millions Q2 ‘21 vPY vPQ H1 ‘21 vPY Balance Sheet & Capital | € millions Q2 ‘21 Q1 ‘21 vPQ vYE Core revenues 302 6% 1% 599 4% Total assets 54,132 52,970 2% 2% Operating income 303 6% - 604 4% Interest-bearing assets (average) 40,701 40,824 - - Operating ex
Slide 18: Outlook
Outlook 2021 outlook OUTLOOK 2021 TARGETS Core revenues FY ’20: €1,171m ~2% growth RoTCE CIR Other income €0m expected 2021 ~15% ~40% FY ’20: €1m Investor Operating expenses: FY ’20: €520m Below €485m New Targets & 4-year Plan through 2025 will Day be presented at the Investor Day 20 September ‘21 o
Slide 19: Important Disclaimer
IMPORTANT DISCLAIMER: 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 doe