Bawag Group Ag · VIE:BG
Bawag — Bawag Group Ag Ord — Q1 2024 Earnings Presentation
23 slides from Bawag's earnings presentation, Apr 29, 2024
Slide 1: BAWAG Group Q1 2024 Results
BAWAG GROUP Q1 2024 RESULTS April 29, 2024
Slide 2: Agenda
AGENDA 1 Q1 2024 HIGHLIGHTS & CAPITAL DEVELOPMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION April 29, 2024 BAWAG Group 2
Slide 3: Highlights Q1 2024
HIGHLIGHTS Q1 2024 EARNINGS BALANCE SHEET & CAPITAL OUTLOOK Q1 ’24: Average customer loans flat and average interest- 2024 financial target reconfirmed: Net profit €167m, RoTCE of 23.7% and EPS of €2.11 bearing assets up 1% vPQ Profit before tax of >€920m … excluding M&A Core revenues up 7% vPY … op
Slide 4: Financial Performance
FINANCIAL PERFORMANCE P&L | € millions Q1 ’24 Q1 ’23 vPY Q4 ’23 vPQ Balance Sheet & Capital | € millions Q1 ’24 Q4 ’23 vPQ vPY Core revenues 392.8 366.3 7% 394.0 - Total assets 54,239 55.448 (2%) (1%) Net interest income 311.8 290.0 8% 316.3 (1%) Cash & Cash Equivalent excluding TLTRO 11,931 12,694
Slide 5: Capital Development
CAPITAL DEVELOPMENT ~90 basis points gross capital generation in Q1 ‘24 QUARTERLY CAPITAL DEVELOPMENT Excess capital €623m CAPITAL DEVELOPMENT 0.5% 16.1% 0.9% 15.6% a) Gross capital generation ~90bps in Q1 ’24 through earnings 14.7% (0.5%) b) Corporate SRT executed in Q1 ‘24 CAPITAL DISTRIBUTION c)
Slide 6: Retail & SME
RETAIL & SME FINANCIAL PERFORMANCE CUSTOMER DEVELOPMENT € millions Q1 ’24 Q1 ’23 vPY Q4 ’23 vPQ € millions Q1 ’24 Q1 ’23 vPY vPQ Core revenues 296.6 275.9 8% 290.1 2% Housing loans 15,164 15,796 (4%) (1%) Net interest income 223.4 207.7 8% 220.3 1% Consumer and SME 6,722 6,386 5% 1% Net commission i
Slide 7: Corporates, Real Estate & Public Sector
CORPORATES, REAL ESTATE & PUBLIC SECTOR FINANCIAL PERFORMANCE CUSTOMER DEVELOPMENT € millions Q1 ’24 Q1 ’23 vPY Q4 ’23 vPQ € millions Q1 ’24 Q1 ’23 vPY vPQ Core revenues 78.8 77.3 2% 79.6 (1%) Corporates 3,441 3,838 (10%) (1%) Net interest income 70.6 68.6 3% 71.5 (1%) Real Estate 5,005 5,669 (12%)
Slide 8: Commercial Real Estate Lending
COMMERCIAL REAL ESTATE LENDING PORTFOLIO DEVELOPMENT UNDERWRITING PRINCIPLES • Residential + Industrial / Logistics make up 66% of • Focus on risk-adjusted returns across all cycles … be 5.7 6.1 5.1 5.0 patient lender with business that meets our risk Total portfolio total portfolio … Main drivers o
Slide 9: Agenda
AGENDA 1 Q1 2024 HIGHLIGHTS & CAPITAL DEPLOYMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION April 29, 2024 BAWAG Group 9
Slide 10: P&L & Key Ratios
P&L & KEY RATIOS P&L | € millions Q1 ’24 Q1 ’23 vPY Q4 ’23 vPQ Key ratios Q1 ’24 Q1 ’23 vPY Q4 ’23 vPQ Net interest income 311.8 290.0 8% 316.3 (1%) RoCE 20.0% 17.7% 2.3pts 21.6% (1.6pts) Net commission income 81.0 76.2 6% 77.7 4% RoTCE 23.7% 21.2% 2.5pts 25.7% (2.0pts) Core revenues 392.8 366.3 7%
Slide 11: Balance Sheet
BALANCE SHEET Balance sheet | € millions Q1 ’24 Q1 ’23 vPY Q4 ’23 vPQ Capital & RWA | € millions Q1 ’24 Q1 ’23 vPY Q4 ’23 vPQ Total assets 54,239 54,513 (1%) 55,448 (2%) Common equity 3,379 3,104 9% 3,307 2% thereof Ø interest-bearing assets 42,349 43,290 (2%) 41,864 1% Tangible common equity 2,852
Slide 12: Funding Overview
FUNDING OVERVIEW Customer funding (average) … ~96% total funding € billion Share of covered bonds 44.5 45.4 45.8 39.2 41.9 DEPOSITS • Retail & SME average deposits €26.5b, thereof ~80% insured by deposit guarantee scheme …. Average deposit size of €12k • Corporates & Public Sector average deposits €
Slide 13: Core Revenues
CORE REVENUES € millions Net interest margin Net interest income (NII) down (1%) vPQ … net Net commission income interest margin (NIM) at 2.96% in Q1 ’24 Net interest income 386.8 390.3 394.0 392.8 • Average customer loans flat vPQ 366.3 • Deposit beta at 29% … +4%points vPQ 76.7 76.6 77.7 81.0 76.2
Slide 14: Operating Expenses
OPERATING EXPENSES € millions Operating expenses CIR (excluding regulatory charges) CIR at 32.9% in Q1 ’24 up 0.9pts vPQ • Focused on absolute cost targets and proactive cost 119.4 120.7 121.9 123.4 126.2 management • Executed multiple initiatives focused on greater scale, greater digital engagement
Slide 15: Risk Costs
RISK COSTS € millions Risk costs Risk costs/average interest-bearing assets Q1 ’24 risk costs €30m ... risk cost ratio 28bps • Ongoing strong credit performance … NPL ratio of 1.0% • ECL management overlay in Q1 ‘24 stable at €80m 30.2 29.9 Maintain safe & secure balance sheet • Focused on developed
Slide 16: 2024 Outlook and Targets
2024 OUTLOOK AND TARGETS P&L OUTLOOK (excluding M&A) 2024 FINANCIAL TARGETS (excluding M&A) Net interest income FY ’23: €1,230m +1% Profit before tax >€920m FY ’23: €910m Core revenues FY ’23: €1,537m +1% Operating expenses 2024 & BEYOND RETURN TARGETS FY ’23: €485m ~3% increase Return on tangible c
Slide 17: Agenda
AGENDA 1 Q1 2024 HIGHLIGHTS & CAPITAL DEPLOYMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION April 29, 2024 BAWAG Group 17
Slide 18: Retail & SME
RETAIL & SME RETAIL & SME OVERVIEW CONSUMER & SME Retail & SME assets, in €b DEVELOPMENTS NPL ratio 1.9% 1.6% 1.7% 1.8% Other Credit box tightened since 2022 to account for cost 22 SME 5% 21 22 22 inflation and rates impact on customer ability to pay 12% Debit/charge cards 5% Ensure stress-resilient
Slide 19: Details on Reserves
DETAILS ON RESERVES IFRS 9 MIGRATION – CUSTOMER SEGMENT ASSETS NON-PERFORMING (STAGE 3) LOANS, in € million Stage 3 4% 2% 5% 2% 6% 2% 6% 2% Stage 2 608 609 642 538 Stage 1 94% 93% 92% 92% Customer NPLs YE ´21 YE ´22 YE ´23 Q1 ’24 YE ´21 YE ´22 YE ‘23 Q1 ’24 NPL ratio 1.0% 0.9% 1.0% 1.0% ECLs (STAGE
Slide 20: Corporates, Real Estate & Public Sector
CORPORATES, REAL ESTATE & PUBLIC SECTOR CORPORATES1) REAL ESTATE PUBLIC SECTOR1) By industry Services By underlying By funding & type Food & beverage Residential Term loans (incl. SSD, Leasing) Pharmaceuticals 5% 22% 20% 8% 2% Office 20% Bonds B-2-C Industrial/Logistics Short term lending Engineerin
Slide 21: Regulatory Capital
REGULATORY CAPITAL € billion Dividend CET1 capital (post dividend) CET1 ratio (post dividend) 3.2 3.1 3.0 Capital distribution plans: 2.9 0.3 0.4 0.1 2.8 0.2 Dividend accrual of €92m for Q1 ’24 based on dividend policy 0.1 (55% of net profit) 15.6% 14.2% 14.7% Capital ratios: 13.9% 13.2% Q1 ’24 Tier
Slide 22: Definitions
DEFINITIONS B/S leverage Loan to Value (LTV) Total assets/common equity (excluding earmarked dividend and buyback of €175m (1.1.2023) IFRS book value including prior liens excluding NPLs / Market value of real estate collaterals allocated Book value per share excluding NPLs Common equity (excluding
Slide 23: 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