Oberbank AG – Investor Presentation 2019 FACT SHEET OBERBANK
Facts & Figures on 7th largest bank in Austria Oberbank
Bank Total assets Employees (FTEs) 2,101 1 Erste Group Bank EUR 236.8 billion
2 Raiffeisen Bank International AG EUR 140.1 billion Loans EUR 15.9 3 UniCredit Bank Austria AG EUR 99.0 billion billion 4 BAWAG P.S.K. EUR 44.7 billion
Primary funds 5 Raiffeisenlandesbank OÖ EUR 35.7 billion EUR 14.2 billion 6 Raiffeisenlandesbank NÖ-Wien AG EUR 25.7 billion
7 Oberbank EUR 22.2 billion Number of branches 8 HYPO NOE Group EUR 14.1 billion 170 9 Raiffeisen-Landesbank Steiermark AG EUR 12.3 billion
Source: Oberbank AG, Annual Report 2018 | Annual Reports of the respective banks Data as at: 31 December 2018
2 OBERBANK AT A GLANCE – FULL YEAR 2018
Profit before Profit after Net interest Net com. tax tax income income
271 226 345 159 million million million million +13% +13% +10% +13%
10.18% 48.92% 17.77% +0.12% ppt -0.98% ppt +0.74% ppt
RoE before Cost/Income Tier 1 capital tax Ratio ratio
Source: Oberbank AG, Annual Report 2018 Data as at: 31 December 2018
3 OBERBANK AT A GLANCE – Q1 2019
Profit before Profit after Net interest Net com. tax tax income income
60 49 85 41 million million million million -7% -10% +8% +1%
8.48% 54.72% 17.52% -1.57% ppt +3.30% ppt +0.91% ppt
RoE before Cost/Income Tier 1 capital tax Ratio ratio
Source: Oberbank AG, Report to Shareholders Q1 2019 Data as at: 31 March 2019
4 OBERBANK IN THE HEART OF EUROPE
1990 2004 Germany Czech Republic
2009 Slovakia 1869 Austria 2007 Hungary
Source: Oberbank AG (own presentation) Data as at: 31 March 2019
5 EMBEDDED IN A STRONG ECONOMIC REGION
Legend: Single branches X x Branches
Source: Oberbank AG (own presentation) Data as at: 31 March 2019
6 LONG-TERM EARNINGS GROWTH
Profit before tax (in € m) 271
239 Sustainable growth and earnings 219 • Resilient business model 192 • Long-term growth trend • Ongoing optimisation of process + costs 158 • Steady expansion (branches) 136 142 126 Stable earnings trend! • Concentration on core business • Stable business policy • Regional customers
12 % Ø-growth p.a.
2011 2012 2013 2014 2015 2016 2017 2018
Source: Oberbank AG, Annual Reports 2011 to 2018 | Data as at: 31 December | Amounts in € million The figures given refer to the past. These cannot be used to derive future trends.
7 POSITIVE DEVELOPMENT OF INTEREST & COMMISSION INCOME
504 456 433 433 439 1/3 402 159 Total income 141 119 133 131 +13% 115
345 287 314 300 308 315 +10%
2013 2014 2015 2016 2017 2018
Net interest income Net commission income
Source: Oberbank AG, Annual Reports 2013 to 2018 Data as at: 31 December | Amounts in € million
8 SUSTAINABLE DEVELOPMENT OF PROFIT AND SHARE PRICE
100 300 Market value over Profit for the year before tax in €m 90 EUR 3.3 billion 250
80 Ordinary share
m €
€ Top 10 on the 70 Vienna Stock Preference share 200 Exchange 60
50 150
40 100
30 Ord. share and pref. share in share pref. and share Ord.
20 Annual reports in tax before the year for Profit 50 1992 to 2010 available 10 on request
0 0
2006 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Oberbank (own calculation), Bloomberg, Data as at: 29 April 2019 The figures given refer to the past. These cannot be used to derive future trends.
9 ISSUER RATING OF OBERBANK
AAA AA+ AA AA- A+ “Stable” outlook A The rating report is available on our website. A- BBB+ BBB BBB- BB+ BB BB- B+ B B-
Rating scale Standard Poor’s & Standard scale Rating CCC+ CCC CCC- CC C D Source: Standard & Poor’s Data as at: 9 January 2019
10
SOLID BUSINESS MODEL & STRATEGY
Autonomy & independence & Autonomy High advisory quality advisory High growth Organic management risk on Concentration development HR Sustainable processes Lean liquidity Secure
Stable foundation of values
Source: Oberbank AG (own presentation)
11 SOLID BUSINESS MODEL & STRATEGY
Our autonomy and independence remain our top priority – they allow us to continue making decisions autonomously, for the region and in
the region. Autonomy & Independence & Autonomy
Stable foundation of values
Source: Oberbank AG (own presentation)
12 INDEPENDENCE DEVELOPED OVER YEARS
1869 1984 1990 2004 2015 Founded in Linz End of Market entry in Market entry in Market entry in syndicate agreement Bavaria Czech Republic Hesse with Creditanstalt
1945 1986 2000 2009 2019 13 branches Initial public First presentation of Market entry in 150 years of offering on the Oberbank, BTV Slovakia Oberbank Vienna Stock and BKS as 3 Banken Exchange Group
1952 1988 2002 2013 2018 Creditanstalt First branch 100 Branches 150 branches Market entry sells 1/3 in Vienna Baden-Württemberg of its shares to & Saxony BKS and BTV 1929 1985 1991 2007 2016 Creditanstalt First branch in Lower Foundation of Market entry in Market entry in becomes majority Austria Drei-Banken-EDV Hungary Thuringia shareholder
Source: Oberbank AG (own presentation) Data as at: 31 March 2019
13 SHAREHOLDER STRUCTURE ENSURES INDEPENDENCE
Bank für Tirol und Vorarlberg AG 16.98% Free float 31.23%
Voting rights 15.21% BKS Bank AG 31 December 2018
Wüstenrot 4.90% Wohnungswirtschaft reg. Gen.m.b.H 25.97 1.77% Generali 3 Banken CABO Beteiligungsgesellschaft m. b. H. Holding AG 3.94% Employees Source: Oberbank AG (own presentation) Data as at: 31 December 2018 - Ownership structure by voting right
14 BUILD UP OF OWN CAPITAL
Equity (in € m) 3.000 2,798
2,467 2.500 2,283
1,926 2.000
1,534 1,421 1.500
1.000
500
0 2013 2014 2015 2016 2017 2018
Source: Oberbank AG, Annual Reports 2013 to 2018 Data as at: 31 December | Amounts in € million
15 WE EXCEED OUR STATUTORY CAPITAL REQUIREMENTS
20.19%
17.46% 17.77% ACT on 31/12/2018 ACT on 31/12/2018 ACT on 31/12/2018
+ 1.40% SREP Premium 9.97% 7.97% 6.47%
Regulatory Regulatory Regulatory requirement requirement requirement
CET 1 ratio Tier 1 capital ratio Total capital ratio
Source: Oberbank AG, Annual Report 2018 | SREP purs. to SREP Notice of 2 October 2017 Data as at: 31 December 2018
16 SOLID BUSINESS MODEL & STRATEGY
We offer high quality advisory services and regularly receive
awards for our performance. High advisory quality advisory High
Stable foundation of values
Source: Oberbank AG (own presentation)
17 WE OFFER UNIVERSAL SERVICES
Corporate and Business Banking Portfolio Retail Banking
Export & investment promotion Structured finance, Real estate private equity, loans & Retirement
Documentary mezzanine capital, subsidy finance provisioning Finance Business Business business & leasing schemes guarantees
Interest & currency Investments &
Risk Risk management pension plans Mgmt. Private banking & asset Consumer loans & management vehicle leasing Payment services &
cash management
services Payment Payment
Source: Oberbank AG (own presentation) Data as at : 31 December 2018
18 SOLID BUSINESS MODEL & STRATEGY
We grow organically through new branches and
do not engage in the acquisition of other banks. Organic growth Organic
Stable foundation of values
Source: Oberbank AG (own presentation)
19 SUCCESSFUL EXPANSION
180 170 300 271 160 156 143 250 140
120 192 110 200 98 100 89 85 150 80 115
60 79 100
40 49 50 20 20 22
0 0 1990 1995 2000 2005 2010 2015 2018 Branches Profit before tax
Source: Oberbank AG, Annual Reports 1990 to 2018 (Annual Reports 1990 to 2010 not available online) Data as at: 31 December | Amounts in € million
20 DYNAMIC EXPANSION IN GERMANY
Saxony Dresden
Hesse Thuringia
Legend: Mainz
Existing branches Mannheim Heilbronn Schwäbisch/Hall Opening planned in 2019
Karlsruhe Böblingen Bavaria
Freiburg Baden- Ravensburg Württemberg
Source: Oberbank AG (own presentation) Data as at: 31 December 2018
21 EXPANSION ALSO REFLECTED IN LENDING VOLUME TREND
15,883 14,760 13,778 12,840 12,276 11,713
12,632 11,711 10,903 +8% 10,145 +7% 9,835 +8% 9,496 +10% +4% +4%
2,875 2,218 2,442 2,695 3,049 3,251 +7% +5% +10% +3% +6% +7%
2013 2014 2015 2016 2017 2018 Individual loans Corporate and business loans
Source: Oberbank AG, Annual Reports 2013 to 2018 Data as at: 31 December | Amounts in € million
22 FAST PACE OF NET GROWTH IN LENDING VOLUME
Net increase in lending volume (in € m)
1000 921 900 809 800 757
700
600 Corporate and Business Banking 500 Retail Banking 400 354 339 311 300
200 253 224 202 100 181 174 114 0 2013 2014 2015 2016 2017 2018 Source: Oberbank AG, Annual Reports 2013 to 2018 Data as at: 31 December | Amounts in € million
23 LOAN DISTRIBUTION HIGHLIGHTS OUR REGIONAL FOCUS
Hungary Slovakia 3% Czech Republic 4% 8%
Germany 15% 48% Upper Austria & Salzburg
8% Lower Austria 14%
Vienna
Source: Oberbank AG (own presentation) Data as at: 31 December 2018
24 SOLID BUSINESS MODEL & STRATEGY
We pursue a cautious risk policy and professional risk management. Concentration on risk management risk on Concentration
Stable foundation of values
Source: Oberbank AG (own presentation)
25 RELEVANT RISK INDICATORS DEMONSTRATE A POSITIVE PICTURE
2017 2018
NPL ratio, gross 2.59% 2.43%
Non-performing loans, gross absolute 414.78 421.68 in € m
Impairment allowance ratio 0.19% 0.16%
Source: Oberbank AG, Annual Report 2018 Data as at : 31 December 2018
26 RISK PROVISIONS AT LOW LEVEL
Impairment charges for losses on loans and advances (in € m) 90 78 80 71 70
60 47 50
40 28 30 25 26
20
10
0 2013 2014 2015 2016 2017 2018
Source: Oberbank AG, Annual Reports 2013 to 2018 Data as at: 31 December | Amounts in € million
27 SOLID BUSINESS MODEL & STRATEGY
Our employees are the most important link between Oberbank and
customers, and set us apart from our competitors. Sustainable HR development HR Sustainable
Stable foundation of values
Source: Oberbank AG (own presentation)
28 NUMBER OF EMPLOYEES RISES DUE TO EXPANSION
2013 2014 2015 2016 2017 2018 Employees 1,993 2,004 2,025 2,049 2,050 2,101
47 45 44 52 113 61 59 94 89 104 78 83 202 • Average number of 199 200 198 employees 183 192 pursuant to IFRS • Salaried employees 230 205 216 215 excluding 185 194 management board and senior management
1,486 1,476 1,479 1,495 1,488 1,509
Austria Germany Czech Republic Hungary Slovakia
Source: Oberbank AG, Annual Reports 2013 to 2018 Data as at: 31 December
29 WE HAVE ONE OF THE OLDEST EMPLOYEE PARTICIPATION SCHEMES IN AUSTRIA
3.94% 130 m € of Oberbank belongs to invested by employees our employees
since 1994 2,500 One of the oldest employee employees hold shares participation schemes
Mitarbeiterstiftung (Employee Foundation) Special employees offer
Source: Oberbank AG (own presentation) Data as at: 31 December 2018
30 SOLID BUSINESS MODEL & STRATEGY
Cost awareness is a main topic for us in our daily business – this is why we do not have to close branches for cost reasons or make
hundreds of employees redundant overnight. Lean processes Lean
Stable foundation of values
Source: Oberbank AG (own presentation)
31 MARKET LEADERSHIP IN COST EFFICIENCY
Cost/income ratio (CIR)
52.1% 50.5% 50.8% 50.1% 49.9% 48.9%
2013 2014 2015 2016 2017 2018
Source: Oberbank AG, Annual Reports 2013 to 2018 Data as at: 31 December
32 DIGITALISATION – AN IMPORTANT STRATEGIC GOAL
Numerous online Diverse multi- applications channel capabilities
Products Services available can be obtained online online
Source: Oberbank AG (own presentation)
33 SOLID BUSINESS MODEL & STRATEGY
Customer loans are refinanced by customer deposits, securitised liabilities and promotional loans. This is an important strategic goal for Oberbank - LDR! Additionally, we have a high liquidity reserve in the form of securities
eligible for refinancing and collateral for loans. Secure liquidity Secure
Stable foundation of values
Source: Oberbank AG (own presentation)
34 STABLE FINANCING OF LOANS
Loan-to-deposit ratio 98% 97.20%
95.50% 96% 95.10%
94% 92.30% 91.70% 92%
90%
87.60% 88% We have an adequate liquidity buffer in the form 86% • of securities assets eligible for refinancing • loan assets eligible for refinancing with central banks 84%
82% 2013 2014 2015 2016 2017 2018
Source: Oberbank AG, Annual Reports 2013 to 2018 Data as at: 31 December
35 OUR LOAN/DEPOSIT RATIO IS 95.10%
95.10% Loan/deposit ratio
Loans and advances to customers Funding base in m €
Equity Refinance allocated for customer loans Securitised liabilities including subordinated debt capital Liabilities to customers Loans and advances to customers
Source: Oberbank AG, Annual Report 2018 Data as at: 31 December 2018
36 FINANCING STRUCTURE OF OBERBANK
Subordinated debt
Securitised liabilities Other liabilities to banks Equity Prov. + other liabilities
TLTRO
Liabilities to banks
Promotional loans Liabilities to customers
Source: Oberbank AG, Annual Report 2018 Data as at: 31 December 2018
37 OUR FUNDING STRATEGY AT A GLANCE
Growth in lending Oberbank Limited retail issues environment Short-term customer deposits
Covered bond issue
Rating process Preparation
Long-term Planning capital market financing
Instruments with different quality
Source: Oberbank AG (own presentation)
38 SUMMARY
Independence is key goal Strong & sustainable ownership structure
High stability Economic success . Total capital ratio of over 20%* . Profit (before tax): EUR 270 million* . NPL ratio: 2.43%* . CIR: 48.9%* . Long-term issuer rating (S&P): . Total assets: EUR 22.2 billion* A, stable*
Clear expansion strategy Focus on strong economic region of Austria, Germany, Czech Republic, Hungary and Slovakia
Source: Oberbank AG (own presentation), *Annual Report 2018 Data as at: 31 December 2018
39 KEY FACTS ON PLANNED ISSUE
Issuer Oberbank AG
Expected rating A (stable) by S&P
Status Ordinary senior Eligible Notes
Maturity 7 to 9 years
Volume Sub-benchmark
Currency Euro
Lead Manager Commerzbank, DZ Bank, Erste Group, Raiffeisen Bank International
Source: Oberbank AG (own presentation)
40 Contacts
41 CONTACTS
Robert Musner Thomas Katzlinger
Head of Head of Team Treasury & Trade Trading & Capital Markets
+43 732 7802 32640 +43 +732 7802 32637 +43 664 805565 224 +43 +664 805565 534 [email protected] [email protected]
Stefan Haasbauer Markus Pretzl
Head of Team Investor Relations Capital Markets & Tax Law
+43 +732 7802 37429 +43 732 7802 37368 +43 +664 805565 211 +43 664 805565 312 [email protected] [email protected]
42 DISCLAIMER
This/these document(s) is/are for current informational purposes only and is/are based on the state of knowledge of the persons charged with its/their preparation at the time of its/their preparation. This/these document(s) constitute(s) neither an offer nor an invitation to buy or sell the investments and (bank) products mentioned therein. None of the statements con-tained in this/these document(s) should be understood to constitute a general recommenda-tion. Although we believe that the sources we have used are reliable, we do not give any guarantee of the completeness or accuracy of the information reproduced here. In particular, we expressly state that numerical information is subject to errors.
The data provided are historical data. They cannot be used to predict future developments.
Oberbank AG. Legal Form: Aktiengesellschaft (Joint Stock Company). Registered Office: Untere Donaulände 28, A-4020 Linz, Austria. Commercial Register No.: FN 79063 w, Landesgericht Linz (State Court of Linz), DVR: 0019020
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