Addiko Bank Ag · VIE:ADKO
Addiko Bank — Shareholder Meeting (April 2024)
26 slides from Addiko Bank's shareholder meeting presentation, Apr 26, 2024
Slide 1: Annual General Meeting 2024
Annual General Meeting 2024 26 April 2024
Slide 2: Key Highlights 2023
Key Highlights 2023 • 2023 net profit up 60% YoY to €41.1m (YE22: €25.7m), 2023 EPS at €2.12 • Return on average Tangible Equity at 5.5% YTD (YE22 YTD: 3.4%) Earnings • Operating result up by 41% YoY to €103.9m reflects positive momentum on earnings despite & increasing deposit funding costs and inf
Slide 3: Guidance 2023 Confirmed by Actuals
Guidance 2023 Confirmed by Actuals For the full year 2023 the Group delivered: Outlook 2023 (as revised upwards in 1H23) 2023 results ➔– Gross performing loans: c. €3.5b with >10% growth in focus €3.5b with 11% focus growth Outlook ➔– Net Banking Income: up by c. 15% up by 18.6% to €295.2m 2023 ➔– O
Slide 4: Key Topics
Key Topics • Slovenia introducing windfall tax for all banks in 2024 (20bp on total assets per year over a period of 5 years); no impact on Mid-Term Guidance Regulatory • Countercyclical buffers in Slovenia and Croatia and Systemic Risk buffer in Austria weigh in Environment on capital requirement (
Slide 5: Share Price Development since Beginning of 2021
Share Price Development since Beginning of 2021 Evolution of the stock price during 2021 in comparison to Austrian banks with CSEE presence 29.12.2023 24.04.2024 220% 2023 €18.40 200% 180% €44.50 160% 140% €3,580.28 120% Share price as €18.30 of 04.01.21 100% Addiko: 13.35 in EUR Bank A: 36.73 Addik
Slide 6: Recent Developments in the Shareholder Structure (c. 48.5% free float)
Recent Developments in the Shareholder Structure (c. 48.5% free float) Alta Pay Alta Pay Group acquired an additional The agreements are conditional on the 9.99% shifted 9.19% holding by Infenity MW Funds Group 19.96% in financial instruments: necessary regulatory and merger control from Infenity Mg
Slide 7: Strong Growth Momentum in Focus Continued
Strong Growth Momentum in Focus Continued Focus portfolio development Gross performing loans (€m) • +11% growth in focus book in 2023 +11% (+15% YoY excluding medium SME) 3,017 • New business generation up +15% YoY 2,722 240 • Focus yield up to 6.3% with new business SME 2,368 2,446 299 yields rea
Slide 8: Strong Finish in NPE Development in 2023
Strong Finish in NPE Development in 2023 NPE volume & ratio development Quarterly NPE formation & exit €m, YTD €m, QTD 1Q23 2Q23 3Q23 4Q23 NPE ratio 3.5% 2.9% 2.4% 2.0% NPE ratio Formation 19.9 21.0 19.8 24.9 (on-balance loans)1 4.7% 4.0% 3.3% 2.8% 4.3 1.1 1.5 1.1 7.2 8.0 8.6 9.4 244 11.6 11.5 10.1
Slide 9: Capital Position Remains Strong
Capital Position Remains Strong Capital development fully-loaded (based on full-year changes) % CET1/TCR, YTD, RWA in €m Addiko Group 3,481 3,653 RWAFL 1.18% 0.71% 0.12% 1.01% 1.10% CET1/ 20.0% 20.4% TCR fully-loaded 2022 2022 OCI OCI YE23 YE 2023 Dividend Dividend Reg. Reg.&& Equity Equity RWA RWA
Slide 10: Economic Environment
Economic Environment GDP forecasts1 (%, real growth) Forecasts • Global economy still impacted by Russia’s war in Ukraine which 2023E 2024E 2025E 2026E continues to be a major cause for 2022A Base Base Base Base uncertainty Slovenia 2.5% 1.3% 2.7% 2.5% 3.3% Croatia 6.2% 2.5% 2.9% 3.1% 2.7% • Despite
Slide 11: Acceleration Program as Key Engine Towards Achieving Mid-Term Guidance
Acceleration Program as Key Engine Towards Achieving Mid-Term Guidance Key developments 2023 • Acceleration Program enabled 11% YoY growth in focus book and 23% growth in lending customer base • Partnership universe further extended to >560 partners at >1200 Business locations 1 Growth in Focus Area
Slide 12: New Mid-Term Guidance
New Mid-Term Guidance Actuals Outlook Guidance Guidance Previous Financial KPIs 2023 2024 2025 2026 Guidance c. 10% CAGR in Loan Growth1 €3.5b >6% CAGR 2023-2026 focus book Business Income NIM2 3.8% >3.8% >4.0% >4.1% >3.8% & NBI (YoY growth)2 €295.2m >4.5% c. 9% c. 9% n.a. OPEX €178.6m <€191m CIR c.
Slide 13: Addiko Story Well Positioned for Strong Growth in Mid-Term
Addiko Story Well Positioned for Strong Growth in Mid-Term • We will turn Addiko into leading CSEE specialist bank for Consumer & SME customers Vision • We are focused and offer the best digital products to challenge universal banks • We will accelerate the bank’s transformation and generate value f
Slide 14: Additional Materials
Additional Materials dee ee
Slide 15: Management Team Since June 2021
Management Team Since June 2021 Herbert Juranek Edgar Flaggl Tadej Krašovec Ganesh Krishnamoorthi Chief Executive Officer Chief Financial Officer Chief Risk Officer Chief Market, IT & Digitalisation Officer Chair of the Management Board Member of the Management Board Member of the Management Board M
Slide 16: Addiko at a Glance
Addiko at a Glance Overview of Addiko Operating as one region - one bank 2023, % of Group Assets (rounded) ✓ Fully licensed bank with HQ in Austria, focused 100% on Central ✓ and South-Eastern Europe (CSEE) ✓ Addiko Bank AG is regulated by the Austrian Financial Market Austria ✓ (4%2) Authority (FMA
Slide 17: Addiko's Commitment to the Sustainable Development Goals
Addiko’s Commitment to the Sustainable Development Goals ESG in Addiko - It is the little things that count Environment Social Governance Making ESG work through Vision Carbon footprint reduction Committed to the good good governance Addiko helps its employees Sound principles of Addiko supports soc
Slide 18: Balance Sheet Composition
Balance Sheet Composition Assets Liabilities and Equity 2023, €b 2023, €b 6.2 6.2 Other Other Assets 0.2 Liabilities ✓• Liquid balance sheet 0.2 0.1 Due to Credit ✓• Strong deposit base - LCR ratio: 313% (YE22: 307%) Institutions 0.5 Direct - Loan-deposit ratio Deposits (customer) : 69.3% (YE22: ✓•
Slide 19: Acceleration of Growth in Focus Areas Consumer & SME
Acceleration of Growth in Focus Areas Consumer & SME Gross performing loans in focus segments Gross yield by segment1 Gross loans of focus segments as % of total gross performing loans 2023 YTD QTD QTD QTD QTD 4Q23 3Q23 2Q23 1Q23 Consumer 7.1% 7.2% 7.2% 7.1% 7.0% % in focus 40% 51% 56% 62% 65% (stoc
Slide 20: Visible Progress in Business with Consumer & SME Customers in CSEE
Visible Progress in Business with Consumer & SME Customers in CSEE Business Update Improving dynamics YoY €m YoY 1,522 • Strong customer growth in cash loans 1,322 +15% 123 (+46% YoY) 125 -2% • Solid new business delivered (+16% YoY) 692 +18% 585 with premium pricing (+121bp YoY) New business
Slide 21: Accelerated Run-Down of Non-Focus in Line With Plans
Accelerated Run-Down of Non-Focus in Line With Plans Non-Focus portfolio development Mortgages, Large Corp. & Public Fin. gross performing loans (€m) -16% -33% -33% -19% 1,469 1,252 Large Corp. & 724 841 Public 613 582 307 469 Mortgages 147 105 744 639 535 435 364 2019 2020 2021 2022 2023 •
Slide 22: Financial Performance 2023 at a Glance
Financial Performance 2023 at a Glance 5.80% Financial Performance 2023 4Q22 1Q23 2Q23 3Q23 4Q23 YTD, €m 77.0 77.4 5.30% 72.9 YE22 YoY 67.8 4.80% 64.2 17.7 16.9 17.0 Netinterest Net interest income income 228.0 176.4 +29.2% NCI 15.6 4.30% 17.1 3.90% 3.89% 3.80% Net fee Net & commission fee & 3.55% 3
Slide 23: Financial Performance 2023 in Detail
Financial Performance 2023 in Detail Key financials P&L in €m YTD QTD •1 Operating result up 41.1% YoY to €103.9m: YE23 (YTD) YE22 (YTD) +/- PY 4Q23 3Q23 +/- PQ − Net interest income up 29.2% YoY driven Net interest income 228.0 176.4 29.2% 60.6 59.3 2.1% by strong business development in Consumer N
Slide 24: Capital Requirements & Guidance Going Forward
Capital Requirements & Guidance Going Forward Capital requirements as of 2024 (excluding P2G) • Unchanged at 3.25% P2R • At least 56.25% must be held in CET1 (2024) capital and at least 75% in Tier 1 capital 20.4% 20.4% 20.4% • Yearly review as part of SREP • Systemic Risk Buffer for Addiko Group: 0
Slide 25: CHF Loans Significantly Managed Down
CHF Loans Significantly Managed Down CHF portfolio overview CHF status across countries €m • Several legislative initiatives on CHF loans were launched, but ultimately % of Total 5.5% 4.4% 3.4% 2.0% 1.7% 1.3% 1.1% 1.0% 1.0% 1.0% 0.9% rejected because the parliamentary constitutional service classifi
Slide 26: Disclaimer
Disclaimer THESE RESULTS AND STATEMENTS (HEREINAFTER REFERRED TO AS “MATERIALS”) WERE CAREFULLY PREPARED BY ADDIKO BANK AG. HOWEVER, THE MATERIALS HAVE NOT BEEN INDEPENDENTLY VERIFIED. THEREFORE, ADDIKO BANK AG MAKES NO REPRESENTATION AND GIVES NO WARRANTY, NEITHER IMPLIED NOR EXPRESSED, AND ASSUMES