Volksbanks. December 2017

Transcription

1 Association of Volksbanks December 2017

2 Contents Overview and governance Loans and advances to customers and NPL Liquidity and funding 1

3 Overview Association, Volksbank Wien Association of Volksbanks The Association of Volksbanks currently consists of 10 primary institutions (regional Volksbanks and a specialized bank). Central organization of the Association is Volksbank Wien AG. Moody s Rating (Volksbank Wien) Long Term Deposit Rating: Outlook Deposit Rating: Covered Bonds Rating: Baa1 Stable Aaa Fitch Rating (Association) Long Term Issuer Default Rating (IDR): Outlook IDR: BBB Stable Association Assets & Capital 1) Total assets: EUR 25.4 bn. Risk-weighted assets (total risk): EUR 13.3 bn. CET1 ratio (total risk): 11.9% Equity ratio (total risk): 14.7% Volksbank Wien Assets & Capital 1) Total assets: EUR 10.8 bn. Risk-weighted assets (total risk): EUR 3.5 bn. CET1 ratio (total risk): 13.0% Equity ratio (total risk): 13.3% 1) As of 30 September 2017, based on IFRS 2

4 Structure of Association of Volksbanks Association of Credit Institutions 10 Primary banks ca. 88,000 commercial customers (predominantly SME) ca. 1 million private customers Primary banks 9 Regional Volksbanks 1 Specialized bank (Österreichische Ärzte- und Apothekerbank AG) 10 Primary banks (target structure: Eight regional banks supplemented by one specialized bank) Volksbank Wien AG Is one of the regional Volksbanks and at the same time central organization of the Association of Volksbanks GV 1) erband) f ÖGV ning system: ÖG nossenschaftsve full members of diting, early war rreichischer Gen mary banks are Aud (Öster Prim The regional Volksbanks and specialized banks have established an Association of Credit Institutions according to section 30a, Austrian Banking Act in 2012 based on a joint liability scheme and a joint liquidity scheme. Volksbank Einlagensicherung eg and Volksbank Vertriebs- und Marketing eg also belong to the Austrian Association of Volksbanks. 1) Volksbank Wien, Volksbank Vorarlberg and Ärzte- und Apothekerbank: Audited by KPMG 3

5 Association s governance Liability and liquidity idit scheme Legally required deposit guarantee VOLKSBANK WIEN AG (CO) Sole responsibility for tasks according Cooperation to 30a, Austrian Banking Act agreement VEG Volksbank Einlagensicherung eg Deposit guarantee, investor compensation Management via issuance of directives Performance ceof control o functions Volksbanks "8 + 1" VBVM Volksbank Vertriebs- und Marketing eg ÖGV and VEG jointly perform tasks in relation to the early warning system ( 61, Austrian Banking Act) Volksbanken Leistungsfonds Trust fund within the consolidation group Responsible for the implementation of the cooperation agreement 4

6 Liability scheme, VEG, VBVM Liability and liquidity scheme Central organization Sole responsibility for tasks resulting from 30a Volksbanken Leistungsfonds The Association contract forms the basis of the liability scheme and determines the central organization s responsibilities (tasks according to 30a, Austrian Banking Act). The central organization performs substantial control functions (management of equity, liquidity and risk, internal organization & IT, planning process), is responsible for the compliance with regulatory requirements and has the right to issue general and individual directives. Volksbanken Leistungsfonds is a trust fund established in order to provide funds for the potential support or recapitalization of Volksbanks in order to prevent a threatening deterioration of earnings, financial position, capital structure or liquidity situation. VEG Volksbank Einlagensicherung eg (VEG) provides the legally required deposit guarantee and investor compensation for the Volksbank sector. VBVM Volksbank Vertriebs- und Marketing eg (VBVM) is responsible for the implementation of the cooperation agreement. Main tasks include the promotion of cooperation in sales activities and the harmonization of processes. 5

7 Association of Volksbanks: Key aspects Joint liability scheme The CO Volksbank Wien and the regional Volksbanks have established a joint liability scheme. They are mutually obliged to jointly support a member institution should difficulties arise. Liabilities and contributions are generally unlimited. Joint liquidity scheme The central organization and the Volksbanks form a strategic liquidity and funding scheme. The Volksbanks have to hold their liquidity at the CO, the CO is responsible for the Association s compliance with regulatory liquidity requirements. Management of capital and risk The CO is in charge of the Association ss equity capital planning. The central organization and the other Volksbanks are also subject to common principles of risk management which are defined in an annual centralized planning process. Right to issue directives The central organization is authorized to issue general or individual directives to the Volksbanks. General directives are aimed at all Volksbanks while individual directives are issued to specific banks. Centralized processes The central organization is responsible for the Association s planning process, for controlling and reporting, as well as for an optimization of the IT, marketing and organization business areas. 6

8 Restructuring process almost completed Volksbank Niederösterreich Total assets of Volksbanks k as of 30 September 2017 (IFRS, excluding consolidation effects) Volksbank Oberösterreich Volksbank Wien 1) Volksbank Vorarlberg Volksbank Tirol Volksbank Salzburg Specialized bank: Ärzte- und Apothekerbank 1.0 Volksbank Kärnten 1.3 Volksbank Steiermark 1) Includes total assets of Sparda Bank (merger took place in August 2017) and of VB Horn (merger with VB Vienna is planned for Q2 2018) 7

9 Contents Overview and governance Loans and advances to customers and NPL Liquidity and funding 8

10 Loans and advances to customers Distribution of loans and advances to customers (EUR bn.) 1) The volume of the Association s loans and advances to customers was EUR 23.7 bn. as of 30 September Clear focus on Austria: As of 30 September 2017 Austria accounted for ca. 95% of loans and advances to customers, followed by Germany (ca. 3%) and Switzerland (ca. 1%). 1) Based on total credit lines extended. As of 30 September 2017 Definition Corporate: Turnover above EUR 50 m. Definition Corporate SME: Volume of loan above EUR 1.5 m. and turnover below EUR 50 m. Definition SME: Volume of loan below EUR 1.5 m. and turnover below EUR 50 m. Definition Retail SME: Volume of loan below EUR 1 m. and turnover below EUR 50 m. 9

11 Distribution of NPLs Distribution of non-performing loans by business fields (EUR m.) 1) The volume of the Association s NPLs stood at EUR 930 m. at the end of the first three quarters of ) As of 30 September

12 NPL ratio: Positive trend Development of Association s NPL ratio (in %) 1) Non-perfoming loans could be reduced significantly over the last years. As a result of a stricter UTP (unlikeliness to pay) definition as required by the supervisor, NPL ratios increased in the second half of The further development was positive again, in Q the volume of non-performing loans fell below an amount of EUR one billion for the first time. An Association-wide process aiming at a further reduction of NPLs is being implemented. 1) Based on loans and advances to customer 11

13 Contents Overview and governance Loans and advances to customers and NPL Liquidity and funding 12

14 Volksbanks deposits Development of Volksbanks deposits between 2003 and Q (EUR bn.) 1) Q Demand deposits Time deposits Saving deposits Other 2) As of Q the Association of Volksbanks deposits stood at EUR bn. In the year 2015 the withdrawal of Volksbank Osttirol-Westkärnten, Volksbank Gmünd and Volksbank Almtal from the Association as well as the spin-off of immigon portfolioabbau ag led to a decrease in deposits. 1) Source: Oesterreichische Nationalbank 2) Other: Foreign customers deposits 13

15 Level of liquidity is comfortable Expected development of the liquidity pool (EUR bn.) / / / / / / / / / / /2018 Bonds ECB credit claims Central bank deposits Cash, gold Covered bond reserve The liquidity cushion held by the central organization Volksbank Wien for the Association of Volksbanks is comfortable and currently reaches approximately EUR 5.7 bn. 14

16 Maturity profile as of 30 Sep (EUR m.) Maturity profile Association s issues Maturity profile covered bonds (CB) ) ab ab 2027 Senior bonds Covered bonds Subordinated bonds CB placed externally CB placed with ECB as collateral The Association of Volksbanks has a covered bond program backed by mortgages of the regional Volksbanks at its disposal, long-term liquidity can be generated through the issuance of covered bonds. A large part of the covered bonds was placed as collateral with the ECB without drawing liquidity. 1) This position includes EUR 75 m. covering trust money (Mündelgeld) 15

17 Contact details Karl Kinsky Tel: +43 (0) Head of Investor Relations Mail: Manuela Elsensohn-Pauser Tel: +43 (0) Investor Relations Mail: Homepage: Address: VOLKSBANK WIEN AG, Kolingasse 14-16, 1090 Wien 16

18 Disclaimer This presentation is made for information purposes only, it is non-binding and shall not be treated as giving any form of investment advice. Please note that there may be forward looking statements in this presentation. Such statements are based on current expectations and are therefore subject to a number of known and unknown risks and uncertainties. The actual results and performances of VOLKSBANK WIEN AG or the Association of Volksbanks and any of their affiliates may differ materially from any such expected future result or performance as expressed in or implied by the said forward looking statements. Reasons for such forward looking statements to eventually differ materially from actual results include, among others, various regulatory and economic factors beyond VOLKSBANK WIEN AG s or any of their affiliates control. VOLKSBANK WIEN AG assumes no obligation whatsoever to update or correct any information made in this presentation. This presentation has been made with due diligence. Neither VOLKSBANK WIEN AG nor its directors, officers, employees, affiliates, advisers, representatives or any other person assumes any liability whatsoever as to the currentness, accuracy or completeness of the information or opinions contained in this presentation or for any loss howsoever arising from any use of or reliance on this presentation or its contents or otherwise arising in connection therewith. Errors and omissions excepted. The redistribution of this presentation and the information contained herein (in whole or in part) is strictly prohibited. The presentation must not be copied, reproduced, distributed or passed (in whole or in part) to any other person without prior written consent of VOLKSBANK WIEN AG. All rights reserved. 17

19 VOLKSBANK. Vertrauen verbindet.