Association of Volksbanks Volksbank Wien. August 2018

Transcription

1 Association of Volksbanks Volksbank Wien August 2018

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

3 Overview Association and Volksbank Wien Association of Volksbanks The Association of Volksbanks consists of 9 primary institutions (8 regional Volksbanks and a specialized bank). Central organization (CO) 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, Volksbanks) Long Term Issuer Default Rating (IDR): Outlook IDR: BBB Stable Association Assets & Capital 1) Total assets: EUR 25.8 bn. Risk-weighted assets: EUR 13.4 bn. CET1 ratio: 12.1% Equity ratio: 16.2% Volksbank Wien Assets & Capital 1) Total assets: EUR 10.9 bn. Risk-weighted assets: EUR 3.7 bn. CET1 ratio: 13.9% Equity ratio: 24.9% 1) As of 30 June 2018, based on IFRS / Risk-weighted assets and capital ratios based on total risk 2

4 Volksbanks are operating throughout Austria Specialized bank: Österreichische Ärzte- und Apothekerbank AG 0.9 Volksbank Niederösterreich Volksbank Oberösterreich Volksbank Wien Volksbank Vorarlberg Volksbank Tirol Volksbank Salzburg Total assets of Volksbanks as of 30 June 2018 (IFRS, excluding consolidation effects) Volksbank Kärnten 1.4 Volksbank Steiermark 3

5 Structure of Association of Volksbanks Association of Credit Institutions Primary banks 8 Regional Volksbanks 1 Specialized bank (Österreichische Ärzte- und Apothekerbank AG) 9 Primary banks Volksbank Wien AG Is one of the regional Volksbanks and at the same time central organization of the Association of Volksbanks Auditing, early warning system: ÖGV 1) (Österreichischer Genossenschaftsverband) Primary banks are members of ÖGV The primary 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 4

6 Association s governance Liability and liquidity scheme Legally required deposit guarantee VOLKSBANK WIEN AG (CO) Sole responsibility for tasks according to 30a, Austrian Banking Act Cooperation agreement VEG Volksbank Einlagensicherung eg Deposit guarantee, investor compensation Management via issuance of directives Performance of control 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 5

7 Liability and liquidity 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. 6

8 Association of Volksbanks: Key aspects Joint liability scheme The central organization 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. 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 s 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. 7

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

10 Focus on domestic retail and SME business Distribution of loans and advances to customers as of 06/2018 (EUR bn.) 1) Volksbank Wien: EUR 6.1 bn. Association of Volksbanks: EUR 24.5 bn SME Private customers 0.3 Other 0.2 Corporate customers 0.1 Public sector 9 SME Private customers 1.0 Other Corporate customers Public sector The Association s business model is focused on retail and SME business: At the end of the first half of 2018, SMEs and private customers account for 90% of Volksbank Wien s loans and advances to customers 91% of the Association s loans and advances to customers Clear focus on domestic business: As of 30 June 2018 Austria accounts for 98% of Volksbank Wien s loans and advances to customers (Germany ca. 1%, Switzerland ca. 0.4%) 95% of the Association s loans and advances to customers (Germany ca. 3%, Switzerland ca. 0.4%) Granular loan portfolio without cluster risks: The top 25 exposures sum up to 8.3% of Volksbank Wien s loans and advances to customers 2) 3.5% of the Association s loans and advances to customers 1) Based on total credit lines extended. Definition Corporate customers: Turnover above EUR 50 m. / Definition SME: Turnover below EUR 50 m. 2) 19 of the top 25 exposures fall into the real estate segment, of which 8 exposures are allocated to the social housing cooperatives category and 6 exposures to the private letting and leasing (buy-to-let) category

11 NPL ratio: Positive trend Development of NPL ratios (in %) 1) Volksbank Wien Association of Volksbanks / / / / / / / / / / / / / /2018 A significant reduction of the NPL ratios could be achieved by Volksbank Wien as well as by the Association as a whole. Currently Volksbank Wien s and the Associations s NPLs ratios are 2.2% and 3.1% respectively. The volume of non-performing loans as of 30 June 2018 is Volksbank Wien EUR 137 m. (of which SME segment: EUR 76 m.) Association of Volksbanks EUR 760 m. (of which SME segment: EUR 528 m.) The Association of Volksbanks aims at a further reduction of the NPL ratio to a level below 3%. 1) Based on loans and advances to customer 10

12 Contents Overview and governance Loans and advances to customers and NPL Liquidity and funding 11

13 Association s deposits stable Development of Volksbanks deposits between 2014 and 2018 (EUR bn.) Q Demand deposits Time deposits Savings deposits As of 31 March 2018 the Association of Volksbanks deposits stood at EUR 21.4 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. 12

14 Association: Level of liquidity is comfortable Expected development of the liquidity pool (EUR bn.) / / / / / / / / / /2019 Bonds ECB credit claims Central bank deposits Cash 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 6.4 bn. 13

15 Association: Maturity profile Maturity profile of Association s issues and of covered bonds as of 06/2018 (EUR m.) Association s total issues Covered bonds (CB) Senior bonds Covered bonds Subordinated bonds CB placed externally CB placed as collateral with ECB 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. 14

16 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 15

17 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. 16

18 VOLKSBANK. Vertrauen verbindet.