Addiko Bank Ag · VIE:ADKO
Addiko Bank — Shareholder Meeting (April 2021)
21 slides from Addiko Bank's shareholder meeting presentation, Apr 26, 2021
Slide 1: Addiko Group: Annual General Meeting 2021
Addiko Group: Annual General Meeting 2021 26 April 2021
Slide 2: Achievements in a Challenging Year 2020
ACHIEVEMENTS IN A CHALLENGING YEAR 2020 Net result 1.4mn • Net profit of €1.4mn in 2020 - catching up from 1H20’s net €+1.4mn loss of €-12.2mn Result after tax • Focus book back on growth path in fourth quarter 2020 -12.2mn 1H20 2020 OPEX • OPEX run-rate down >€5mn in addition to Covid-19 savings -1
Slide 3: Key Highlights 2020 – Guidance 2020 Confirmed by Actuals
KEY HIGHLIGHTS 2020 – GUIDANCE 2020 CONFIRMED BY ACTUALS • Result after tax of €1.4mn net profit (YE19: €35.1mn) • Provisioning at -1.35% Cost of Risk with €-48.4mn (YE19: €+2.9mn at CoR +0.2%) Earnings predominantly driven by IFRS 9 model adjustments and Stage 2 developments • Operating result (bef
Slide 4: Envisaged Dividend Roadmap 2021
ENVISAGED DIVIDEND ROADMAP 2021 Communication of Publication of Currently expected Expected conditional dividend 2019 approach the Consolidated AGM 2021 Regular dividend lifting of ECB dividend in Feb 2021, following Annual Report (payment date) dividend ban (payment date) ECB alignment 2020 YE20 9
Slide 5: Improved Environment and Business Implications
IMPROVED ENVIRONMENT AND BUSINESS IMPLICATIONS GDP forecasts1 (%, real growth) Forecasts 2020E 2021E 2020E 2021E Base Base Pessimistic Pessimistic • Despite ongoing pandemic V-shaped recovery in 2021 expected Slovenia (6.7)% 4.7% (7.3)% 2.3% as most likely scenario Croatia (9.4)% 5.0% (10.0)% 2.5% S
Slide 6: Repositioning into Focus Areas Consumer and SME Continued
REPOSITIONING INTO FOCUS AREAS CONSUMER AND SME CONTINUED Gross performing loans in focus segments Gross yield by segment1 Gross loans of focus segments as % of total gross performing loans 2020 QTD 4Q20 3Q20 2Q20 1Q20 2019 yield yield yield yield yield Consumer 7.3% 7.2% 7.3% 7.3% 7.4% 7.4% 51% 56%
Slide 7: Ongoing Shift into Focus and Managed Reduction in Non-Focus
ONGOING SHIFT INTO FOCUS AND MANAGED REDUCTION IN NON-FOCUS Focus portfolio development Consumer & SME gross performing loans (€mn) YoY +13% ➔ -1% -1% -2% 2,401 2,382 2,352 • Focus portfolio remained stable despite 2,116 challenging environment 1,059 1,061 • New business volumes continued to i
Slide 8: Simple Balance Sheet Composition
SIMPLE BALANCE SHEET COMPOSITION Assets Liabilities and Equity 2020, €bn 2020, €bn Other 5.9 5.9 Liabilities ✓• Liquid balance sheet Other Assets 0.2 0.1 Due to Credit - LCR ratio: 209% (YE19: 175%) 0.2 Institutions ✓• Strong deposit base 0.4 Direct - Loan-deposit ratio Deposits (customer) : 75.8% (
Slide 9: Strong Risk Management Framework
STRONG RISK MANAGEMENT FRAMEWORK Decreasing non-performing loan portfolio (YTD) NPE Volumes, 1,229 761 606 404 393 329 317 277 239 244 248 244 €mn NPE Coverage Ratio 1 61.7% 67.5% 67.0% 75.4% 75.8% 73.2% 75.3% 73.8% 73.3% 73.2% 73.7% 73.6% (Ex-Collateral) 14.3% 2 NPE Ratio 9.2% 8.1% 5.6% 5.5% 4.6% 4
Slide 10: Total Exposure in Moratoria Down to 2.4% at YE20
TOTAL EXPOSURE IN MORATORIA DOWN TO 2.4% AT YE20 Gross Exposure in moratoria Development of exposure in moratoria Reported, €mn Reported, €mn Retail2 exposure 1,011 Non-Retail3 exposure 7,036 6,923 6,881 6,839 During 4Q20: • Net reduction of €503mn in moratoria exposure, predominantly driven by Serb
Slide 11: Addiko's Capital Position Remains Strong
ADDIKO’S CAPITAL POSITION REMAINS STRONG Capital development 17.7% 17.7% Capital requirement 16.9% % CET1/TCR, RWAs transitional and fully-loaded in €mn 14.6% RWA -11% (FL: -12%) YoY 2.0% T2 1.5% T1 4.1% - SREP Add-on RWA 4,572 4,512 4,165 4,162 4,053 16.9% 2.5% - Capital 11.1% CET1 Conservation RWA
Slide 12: Outlook 2021 & Dividend Policy
OUTLOOK 2021 & DIVIDEND POLICY • The return to pre-crisis operating environment will largely depend on the evolution of the pandemic • For the full year 2021 the Group expects: – Gross performing loans: c. €3.5bn with >5% growth in focus ➔ Outlook 2021 – Net Banking Income: stable at 2020 level (YE2
Slide 13: Additional Materials
Additional Materials dee ee
Slide 14: Addiko at a Glance
ADDIKO AT A GLANCE Overview of Addiko Operating as one region - one bank 2020, % 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 ✓ (2%2) Authority (“FM
Slide 15: Committed to Accelerated Execution of Established Strategy
COMMITTED TO ACCELERATED EXECUTION OF ESTABLISHED STRATEGY Core strategic pillars Proven track record Focus on CSEE market Established franchise increasing lending to focus areas by ✓ >60% since 2016 as first year of launch of new strategy Focus on growth in unsecured Consumer & SME lending and paym
Slide 16: Strategy Unchanged: Focused Consumer and SME Specialist in CSEE
STRATEGY UNCHANGED: FOCUSED CONSUMER AND SME SPECIALIST IN CSEE CSEE markets – high RoAE banks are volume players or specialists Focus vs. Non-Focus 20 28 Universal Banks / Volume Players Focus: Consumer and SME Consumer and SME loans offer strong risk adjusted yields Overall Market Share in % 15 Si
Slide 17: Financial Performance 2020
FINANCIAL PERFORMANCE 2020 Key financials (reported) P&L in €mn YTD (new P&L logic) QTD (previous P&L logic) •1 Operating result before change in YE20 YE19 +/- PY 4Q20 3Q20 +/- PQ credit loss expense at €54.7mn, up Net interest income 174.7 183.0 -4.5% 43.0 43.1 -0.3% 55.6% YoY Net fee and commissio
Slide 18: Key Performance Drivers 2020
KEY PERFORMANCE DRIVERS 2020 Net interest income Net fee and commission income €mn €mn 299bp 291bp NIM -4.5% 183.0 174.7 -5.2% +1.7% -4.5% -0.5% -0.3% -11.0% -10.5% +12.5% +1.0% 67.2 59.8 45.3 43.3 43.1 43.0 15.3 13.7 15.4 15.5 2019 2020 1Q20 (QTD) 2Q20 (QTD) 3Q20 (QTD) 4Q20 (QTD) 2019 2020 1Q20 (QT
Slide 19: Provisioning in Line with Developments and IFRS 9
PROVISIONING IN LINE WITH DEVELOPMENTS AND IFRS 9 Credit loss expenses on financial assets Full year 2020, €mn o/w IFRS 9 • Full year 2020 IFRS 9 provisions (2.2) (7.6) (5.5) (15.4) (0.6) (16.0) models of €-48.4mn resulting in (1.35)% (3.0) (0.6) cost of risk (on net loans): − Consumer: (1.67)% (23.
Slide 20: Updated Mid-Term Targets - Delay in Timing Rather Than in Substance
UPDATED MID-TERM TARGETS - DELAY IN TIMING RATHER THAN IN SUBSTANCE 1Q20: 1Q21: Reviewed Mid-Term NEW Mid-Term Target metric targets targets Key insights Focus vs. Non-Focus >85% in Focus (Mid single-digit gross c. 90% in Focus Strategy and business model (Gross Performing Loans) performing loans gr
Slide 21: 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