Addiko Bank Ag · VIE:ADKO
Addiko Bank — FY2023 Earnings Presentation
68 slides from Addiko Bank's earnings presentation, Mar 6, 2024
Slide 1: YE23 Results Presentation
YE23 Results Presentation Herbert Juranek (CEO) Edgar Flaggl (CFO) Tadej Krašovec (CRO) Ganesh Krishnamoorthi (CMO & CIO) Constantin Gussich (Investor Relations) 6 March 2024
Slide 2: Executive Summary & Business Update; Financials & Risk Update; Outlook & Wrap-Up
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 3: Key Highlights 2023
Key Highlights 2023 • 2023 net profit up 60% YoY to €41.1m (YE22: €25.7m), 2023 EPS at €2.12 − Fourth quarter result 2023 after tax at €11.0m (3Q23: €10.6m, 2Q23: €9.8m, 1Q23: €9.7m) − Cost of Risk remained benign at -34bps (€-11.8m) Earnings • Return on average Tangible Equity at 5.5% YTD (YE22 YTD
Slide 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 • Strong customer growth in cash loans (+46% YoY) 1,522 +15% • Solid new business delivered (+16% YoY) with 1,322 123 125 -2% premium pricing (+121bp YoY) 692 +18% • Card accelerati
Slide 10: 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 11: Executive Summary & Business Update; Financials & Risk Update; Outlook & Wrap-Up
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 12: 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 13: 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 14: 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 15: Cost of Risk at a Glance
Cost of Risk at a Glance Expected credit loss expenses on financial assets 2023 YTD, €m, positive number for release • 2023 expected credit loss expenses of €-11.8m YTD Impairments (negative) 8.3 resulting in -0.34% cost of Releases (positive) (13.5) (0.7) risk (on net loans): − Consumer: -0.35% (11
Slide 16: Executive Summary & Business Update; Financials & Risk Update; Outlook & Wrap-Up
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 17: Outlook 2024 and Wrap-Up
Outlook 2024 and Wrap-Up Income & Business Risk & Liquidity Profitability Loan Growth >6% CoR c.1% RoATE c. 6.5% CAGR 2023-2026 Outlook <3% 2024 NIM >3.8% NPE Ratio as guiding principle DPS >€1.2 NBI >4.5% YoY TCR >18.35% OPEX <€191m LDR <80% Ramp-up until 2026 Details as outlined on page 6 apply •
Slide 18: Executive Summary & Business Update; Financials & Risk Update; Outlook & Wrap-Up
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 19: 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 20: 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 ✓ Addiko Bank AG is regulated by the Austrian Financial Market Austria ✓ (4%2) Authority (“FMA”)1 an
Slide 21: New Mid-Term Guidance - Key Macroeconomic Assumptions
New Mid-Term Guidance - Key Macroeconomic Assumptions GDP forecasts (%, real growth) 2023E 2024E 2025E 2026E 2022A Base Base Base Base • Global economy still impacted by Slovenia 2.5% 1.3% 2.7% 2.5% 3.3% Russia’s war in Ukraine which continues to be a major cause for Croatia 6.2% 2.5% 2.9% 3.1% 2.7%
Slide 22: New Mid-Term Guidance - Key Drivers to Reach >10% RoATE
New Mid-Term Guidance - Key Drivers to Reach >10% RoATE 2 3 >10% 5.5% 5.5% 1 3.4% 3.4% RoATE 2022 2023 Margin Operating Other Mid-Term Expansion Efficiency 2026 1 Margin Expansion 2 Operating Efficiency 3 Other 100.0 5.00% >6% CAGR 80.0 (2023-2026) 4.50% Gross Loan 400.0 5.00% 60.0 Book350.0 40.0 4.
Slide 23: 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 24: ESG Action Plan on Track - Key Developments in 2023
ESG Action Plan on Track - Key Developments in 2023 ✓ Addiko has published its first Environment ESG strategy ✓ ESG governance has been strengthened, inclusion of ESG in the Bank’s internal policies ✓ Further improvement of risk identification and materiality assessment of climate-related and other
Slide 25: Environment
Environment Addiko helps its employees & customers to become more climate neutral Initiative Goal Development during 2023 12% electric & hybrid cars Electromobility • Replacing the car-fleet with the electric & hybrid cars ordered Office space • Reducing office spaces and number of branches 2.2% red
Slide 26: Social
Social Addiko supports social equality on all levels Initiative Goal Development during 2023 48% women on executive and Diversity and • Further strengthen diversity and inclusion (gender, age and middle management inclusion national equality) positions, 23 different nationalities • Hybrid work, cele
Slide 27: Governance
Governance Sound principles of governance in Addiko’s DNA Initiative Goal Development during 2023 • ESG regularly discussed at management board level Corporate bodies & • Update guidelines to include ESG-related matters First ESG strategy published code of conduct • Whistleblowing & complaints to ad
Slide 28: 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 29: 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 yield yield yield yield Consumer 7.1% 7.2% 7.2% 7.1% 7.0% % in focus 4
Slide 30: Consumer and SME Lending Development
Consumer and SME Lending Development Consumer (Micro shifted to SME as of 1Q21) SME €m, YTD €m, YTD 1,6681,706 1,606 1,525 1,535 1,562 1,476 1,389 1,431 1,2981,3261,310 1,342 1,312 1,243 1,1641,1771,188 1,188 1,106 1,0591,0401,057 1,028 928 791 774 Gross 646 Performing Loans 2016 2017 2018 2019 2020
Slide 31: New Business on a Monthly Basis
New Business on a Monthly Basis New business continued during 2023 €m 2023YTD: 707 68 64 69 60 62 63 63 51 48 58 59 56 61 60 57 54 53 Consumer 50 50 49 49 38 38 38 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. 2023YTD: 815 90 76 72 78 81 75 72 72 63 68 67 66 62 SME 56 61 54 55 58 57 53
Slide 32: 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 (€mn) -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 33: Digital Lending Platforms in All Major Markets
Digital Lending Platforms in All Major Markets WebLoan (Consumer & SME) Group Application Processing System – GAPS (Consumer) Simple entry point for loan requests with instant Simple branch loan Application Processing System initial offer including CDE (Credit Decision Engine) Achievements 4Q23 Achi
Slide 34: Consumer Customer Base
Consumer Customer Base Customer base1 Customers’ years of relationship with Addiko Number of clients (excl. NPE), ths. 2023 <1 Year 26% of customer base attracted over last 3 years 12% 777 1-3 Years 14% 727 Total: 689 60% 777 ths. >6 Years 256 14% 2 237 3-6 Years Passive 231 74% of clients >3 years
Slide 35: Focus in Consumer Remains on High-Margin Product Offering and Sales Finance
Focus in Consumer Remains on High-Margin Product Offering and Sales Finance Unsecured lending products for Consumer 2023 Fast cash loans Payroll loans Sales finance (POS) • Unsecured loan • Unsecured loan • Unsecured loan for financing goods and Description • Non payroll (salary account with Addiko
Slide 36: Growth in Consumer Lending Slowly Returning
Growth in Consumer Lending Slowly Returning Addiko market share – unsecured consumer loans (stock outstanding, 1H23E)1,2 Bosnia & Serbia Croatia Slovenia Montenegro Herzegovina Market • Consumer lending market Size, 7.7 10.5 4.6 4.6 1.1 size grew by +7.0% YoY €b Market • Strong growth in Addiko’s Gr
Slide 37: SME Customer Base
SME Customer Base Customer base Customers’ years of relationship with Addiko Number of clients (excl. NPE), ths. 2023 < 1 year 34% of customer base attracted 14% over last 3 years 1-3 years 39.8 Total: 37.7 51% 21% 1.1 0.3 >6 years 39.8 ths. 36.5 0.2 1.2 0.3 Passive1 1.2 6.8 Medium 14% Active2 6.3 3
Slide 38: SME Lending Focus Remains on Smaller Tickets with Higher Yields
SME Lending Focus Remains on Smaller Tickets with Higher Yields for Micro and Small SME Customers Lending products for SME 2023 DLS1 Loans Non-DLS Loans • Standardized loans for financing working • Non-standardized loans for financing working Description capital capital and investments • Full digita
Slide 39: Digital Transformation
Digital Transformation Digital capabilities YTD +13% YoY Registered Mobile Banking 118 150 188 230 258 291 +2% Mobile banking users (vs. PQ) Users (ths.)2 +10% YoY +2% Digital users (vs. PQ) 301 273 246 210 25% Bank@Work (YE23: 25%, 1H23: 26%, 1Q23: 27%, YE22: 26%) 177 149 35% Digital consumer loans
Slide 40: Financials: Financial Performance 2023 in Detail
Financials: 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 i
Slide 41: Financials: Key Performance Drivers 2023
Financials: Key Performance Drivers 2023 Net interest income Net fee and commission income €m €m NIM 298bp 375bp 355bp 380bp 390bp 389bp % of 41% 29% 30% 30% 30% 28% +29.2% NII 228.0 176.4 +7.1% +6.1% +2.1% -7.4% +9.3% +4.2% -4.2% 59.3 60.6 72.5 67.1 52.2 55.9 15.6 17.0 17.7 16.9 YE22 (YTD) YE23 (YT
Slide 42: Financials: Interest Income Dynamics
Financials: Interest Income Dynamics Interest income by quarter1 Gross yield by quarter2 €m 76.0 72.7 4Q22 1Q23 2Q23 3Q23 4Q23 67.3 6.8% 7.0% 7.1% 7.2% 7.2% 20.9 Consumer 61.0 19.1 6.6% 7.5% 7.6% 7.8% 7.8% 17.1 new new new new new business business business business business Other 53.1 13.8 1.7 Publ
Slide 43: Financials: Breakdown of Other Interest Income
Financials: Breakdown of Other Interest Income Treasury interest income by quarter €m • HTC bond portfolio strategy: interest income from the instruments held under the Hold-to-Collect (HTC) bond portfolio strategy in EU Other interest entities. This portfolio is steered as the HTC bond portfolio, b
Slide 44: Plain Vanilla Investment Portfolio
Plain Vanilla Investment Portfolio Evolution of Investment Portfolio1 Key highlights €m 1,179 1,062 1,109 19 972 19 114 12 • Investment portfolio at €1.2b as of YE23: 18 117 Equity 16 118 21 13 38% of the portfolio are in securities in HTC Corporations 120 51 book and 62% in securities measured at C
Slide 45: Financials: Interest Expense Dynamics
Financials: Interest Expense Dynamics Interest expense by quarter Cost of funding by quarter1 €m 15.5 1.5 13.4 4Q22 1Q23 2Q23 3Q23 4Q23 1.4 1.3 Deposits - 11.4 0.40% 0.50% 0.55% 0.70% 0.82% 1.4 Network 3.3 2.0 8.7 3.0 Direct Treasury 1.1 0.74% 1.52% 1.76% 2.12% 2.37% 0.4 Deposits Deposits – 0.9 Cred
Slide 46: Financials: Perspective on Interest Rate Sensitivity
Financials: Perspective on Interest Rate Sensitivity Estimated impact on NII and NIM for parallel interest rate shifts Interest binding structure of customer deposits €m, calculated based on 2023 balance sheet % of customer deposits, calculated based on 2023 balance sheet Shift -25bp -50 bp -75 bp -
Slide 47: Financials: Commission Income Dynamics
Financials: Commission Income Dynamics Net fee and commission income by quarter Key highlights €m • Net fee and commission income 4Q23 lower due to 17.7 Non-Focus 17.1 17.0 16.9 seasonal effects in FX/DCC and card business 0.7 and Other 0.6 15.6 0.9 0.5 0.7 • Other products: increased contribution f
Slide 48: Financials: Other Income & Other Result
Financials: Other Income & Other Result Other income breakdown (YTD) €m 2022 2023 Higher deposit guarantee as well as bank levies and other Deposit guarantee -6.5 -7.1 1 taxes while lower frontloaded regulatory charges from the 1 Bank levies and other taxes -3.8 -4.6 recovery and resolution fund Rec
Slide 49: Financials: Development of Operating Expenses
Financials: Development of Operating Expenses Operating expenses development by quarter Other Administrative expenses €m 2023, €m Other1 8.0 13% Advertising 7.5 12% Total: 31.1 4.0 €63.5m 49% IT Legal & Advisory 6% 46.7 45.0 43.7 13.0 43.3 43.1 4.4 20% 4.3 Premises Expenses Depreciation 4.2 4.3 4.2
Slide 50: Financials: Balance Sheet
Financials: Balance Sheet Detailed balance sheet overview (YTD) €m 2019 2020 2021 2022 2023 Cash reserves 899.4 1,156.3 1,361.7 1,382.9 1,254.5 Investment Portfolio 1,135.1 965.5 1,044.8 1,084.4 1,208.1 Financial assets held for trading 38.5 36.4 32.6 22.8 29.5 Investment securities 1,096.6 929.0 1,
Slide 51: Financials: Income Statement
Financials: Income Statement Detailed income statement overview (YTD) €m 2019 2020 2021 2022 2023 Interest income calculated using the effective interest method 207.4 194.3 185.5 192.9 247.3 Other interest income 3.4 2.6 2.2 2.3 29.7 Interest expense (27.8) (22.3) (18.2) (18.7) (49.0) Net interest i
Slide 52: Financials: Breakdown by Entity
Financials: Breakdown by Entity 2023 YTD Addiko Bank d.d., Addiko Bank d.d., Addiko Bank d.d., Addiko Bank a.d., Addiko Bank a.d., Addiko Bank A.D., (€m, IFRS) Zagreb Ljubljana Banja Luka Sarajevo Beograd Podgorica Net interest income 72.4 58.2 21.3 19.8 41.2 12.3 Net commission income 21.4 14.4 9.0
Slide 53: Financials: Focus Portfolio - Maturity Breakdown
Financials: Focus Portfolio - Maturity Breakdown Remaining contractual maturity Gross performing loans, €m +11% Consumer SME Total 1,706 1,310 Consumer SME 3,017 19 2,722 >10Y 18 1 1,535 1,188 Total 6 > 10Y 5 1 >10Y 1,089 5-10Y 945 144 1,055 5-10Y 865 190 5-10Y 511 718 1-5Y 1-5Y 1,484 1-5Y 587 897 1
Slide 54: Financials: Non-Focus Portfolio - Maturity Breakdown
Financials: Non-Focus Portfolio - Maturity Breakdown Remaining contractual maturity Gross performing loans, €m Large Large Mortgage Corporates Public -19% Mortgage Corporates Public 435 101 46 Total Total 364 74 31 582 274 0 >10Y 469 >10Y 227 0 3 277 3 108 41 11 5-10Y 5-10Y 90 4 10 > 10Y 230 50 31 2
Slide 55: Risk: Strong Risk Management Framework
Risk: Strong Risk Management Framework Non-performing loan portfolio (YTD) NPE Volumes, €m 1,229 761 606 404 277 244 194 163 161 159 153 138 NPE Coverage Ratio1 61.7% 67.5% 67.0% 75.4% 73.8% 73.6% 71.9% 75.4% 77.0% 78.0% 79.2% 80.9% (Ex-Collateral) 14.3% 1H21: NPE volume: €238m NPE volume: -42% NPE
Slide 56: Risk: Robust Asset Quality in Portfolios
Risk: Robust Asset Quality in Portfolios Focus Non-Focus Consumer SME €m, rounded €m, rounded €m, rounded 1,968 1,958 1,925 > 90 1,909 1,886 days 1,872 39 31 > 90 1,829 39 33 46 38 40 61-90 37 33 days 1,777 44 67 26 77 days 61-90 45 68 days 73 31-60 31-60 days days < 30 < 30 days days > 90 days No 1
Slide 57: Risk: Provision Coverage Evolution
Risk: Provision Coverage Evolution Stage 1, 2 and 3 assets1 Business segments: Stage 1 & 2 (Performing) coverage1 €m 2023 (YTD) ECL coverage (YTD) By Segment 3Q23 1H23 1Q23 2022 4,427 4,509 4,467 4,362 4,382 Focus Focus 1.4% 1.6% 1.7% 1.7% 153 138 1.4% 163 161 159 413 434 409 448 580 Consumer 1.6% 1
Slide 58: Risk: Increase in Stage 2 While Rating Distribution Improved
Risk: Increase in Stage 2 While Rating Distribution Improved Stage 1, 2 & 3 Consumer SME Non-Focus Total Portfolio Rating distribution Rating distribution Rating distribution Rating distribution 4,467 4,362 Stage 3 138 0% 0% 0% 0% 1% 0% 0% 0% 163 Stage 2 434 580 30% 35% 43% 51% 56% 59% 60% 64% 17% 3
Slide 59: Risk: NPE Formation and Exit Dynamics
Risk: NPE Formation and Exit Dynamics Quarterly NPE formation & exit - group level Consumer SME Mortgages Large Corporates Public Finance €m €m €m €m €m Net 0.0 -1.6 -2.7 -2.8 0.5 -0.7 0.3 -12.9 -2.3 -0.6 -2.4 -2.9 0.0 0.0 0.0 +3.5 0.0 0.0 -0.2 -0.4 11.6 11.5 10.1 11.2 9.4 1.1 1.5 1.1 0.7 0.0 0.0 0.
Slide 60: Risk: Low NPE Concentration, Well Provisioned and Carefully Managed
Risk: Low NPE Concentration, Well Provisioned and Carefully Managed Overview of Top 10 NPEs 2023 Group of Borrowers, €m Borrower Total Exposure Country Description Metal industry and mechanical NPE 1 9.5 Croatia engineering Coverage for Top 10 NPEs NPE 2 3.5 Serbia Retail and wholesale trade Coverag
Slide 61: Risk: NPE and Cost of Risk Development
Risk: NPE and Cost of Risk Development Focus Non-Focus3 €m Consumer SME €m €m NPE Coverage Ratio (Excl. 78.8% 78.7% 80.2% 80.8% 64.1% 68.6% 76.3% 81.8% 72.4% 79.9% 82.5% 79.9% Collateral)1 6.1% 5.3% 5.2% 5.4% 4.0% 3.7% NPE Ratio2 3.2% 3.5% 3.1% 3.0% 3.0% 2.3% 2021 2022 3Q23 2023 2021 2022 3Q23 2023
Slide 62: Risk: NPE and Cost of Risk Development by Business Segment
Risk: NPE and Cost of Risk Development by Business Segment Consumer SME Mortgages Large Corporates Public Finance €m €m €m €m €m NPE Coverage Ratio1 78.8% 78.7% 80.8% 64.1% 68.6% 81.8% 77.6% 77.4% 82.0% 53.5% 91.0% 78.1% 40.6% 61.8% 73.2% 9.4% 7.1% 5.8% 4.8% 4.5% 4.5% 4.0% 3.7% 4.0% NPE Ratio2 3.0%
Slide 63: Risk: CHF Loans Significantly Managed Down
Risk: 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 cl
Slide 64: Capital: Capital Requirements & Guidance Going Forward
Capital: 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
Slide 65: Capital: Capital Position Remains Strong
Capital: Capital Position Remains Strong Capital development fully-loaded % CET1/TCR, YTD, RWAs fully-loaded in €mn RWAFL 3,481 3,507 3,559 3,538 3,481 1.13% 0.67% 0.12% 0.07% 0.04% 0.15% 0.01% 0.05% 0.01% 0.22% 0.20% 0.30% 0.44% 0.59% CET1/ TCR fully-loaded 20.0% 20.0% 19.9% 20.4% 19.5% 1 1 2022 OC
Slide 66: Capital: Further Details
Capital: Further Details Breakdown of capital position1 Fully-loaded Addiko is using the standardised approach for 20.0% 20.0% 19.9% 20.4% 19.5% its RWA calculation with most of its RWAs stemming from credit risk Expiration of IFRS 9 transitional capital rules as of 1 January 2023 leading to no diff
Slide 67: Capital: Credit Risk RWA in Focus vs. Non-Focus
Capital: Credit Risk RWA in Focus vs. Non-Focus Risk weighting for focus portfolio is in line with overall contribution to loan book Credit risk RWA Credit risk RWA: breakdown by segment1 2023, €m 2023, €m Public Large Finance Corporate 3,061 10618 Mortgages 216 Corporate Center 509 Consumer Total:
Slide 68: 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