Association of Volksbanks.

Transcription

1 Association of Volksbanks Vienna, September

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

3 Overview Association, Volksbank Wien Association of Volksbanks The Association of Volksbanks currently consists of 24 primary institutions (regional Volksbanks and specialized banks). Central organization of the Association is Volksbank Wien AG. Fitch Ratings Long Term Issuer Default Rating (IDR): Outlook IDR: Covered Bond Rating: Outlook Covered Bond Rating: BB+ Positive BBB Positive Association g ( ) Assets & Capital 1) Total assets: EUR 27.7 bn. Risk-weighted assets (total risk): EUR 14.8 bn. CET1 ratio (total risk): 11.7% Equity ratio (total risk): 14.8% Volksbank Wien Assets & Capital 1) Total assets: EUR bn. Risk-weighted assets (total risk): EUR 2.9 bn. CET1 ratio (total risk): 12.5% Equity ratio (total risk): 12.8% 1) As of 30 June 2016 Page 2

4 Association of Volksbanks: current structure Association of Volksbanks 24 primary banks ca. 93,000 commercial customers (predominantly SME) ca. 1.1 million private customers Primary banks 17 Regional Volksbanks 1) (a restructuring process is currently being implemented: by mid-2017 the number of primary banks will decrease to 8 regional Volksbanks and 2 specialized banks through mergers in the sector) 4 Specialized banks (Apothekerbank, Ärztebank, IMMO-BANK 2), Sparda Bank Austria) 2 In-house co-operatives 1 Co-operative building society (start:bausparkasse) 2) 24 Primary banks Volksbank Wien AG Is one of the regional Volksbanks and central organization (CO) of the Association of Volksbanks Volksbank Einlagensicherung eg Deposit protection (Einlagensicherung) of Association of Volksbanks GV 3) and) V system by ÖG nschaftsverb embers of ÖGV erarly warning cher Genossen nks are full me Auditing and e Österreichisc Primary ba A (Ö The regional Volksbanks and specialized banks have established an Association of Credit Institutions according to section 30a, Austrian Banking Act (Association of Volksbanks) in 2012 based on a joint liability scheme and a joint liquidity scheme. 1) As of 09/2016 2) Signing of the sale of start:gruppe (start:bausparkasse, IMMO-BANK) took place on 22 June 2016, closing of the transaction is expected for Q / Q ) The central organization Volksbank Wien is audited by KPMG Page 3

5 Association of Volksbanks: key aspects Joint liability scheme The central organization (CO) Volksbank k Wien and the regional Volksbanks k have established a joint liability scheme, they are mutually obliged to jointly support a member institution should difficulties arise. Liabilities and contributions are unlimited. Joint liquidity scheme The central organization and the Volksbanks form a strategic liability 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 central organization is in charge of the Association s equity capital planning; the central organization and the other Volksbanks are 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. Planning process The central organization is responsible for the Association s planning process, for controlling and the preparation of the Association s reports, as well as for an optimization of the IT, marketing and organization business areas. Page 4

6 Association s governance LIABILITY 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 + 2" VBVM Volksbanken-Vertriebs- und Marketing eg ÖGV and VEG jointly perform tasks Volksbanken Leistungsfonds Responsible for the Trust fund within the consolidation group in relation to the early warning system ( 61, Austrian Banking Act) Responsible for the implementation of the cooperation agreement The governance structure of the Association of Volksbanks has been adapted and was approved by the regulator on 01 July The main modifications are a change in the support mechanism (instead of Volksbank Haftungsgenossenschaft eg now the central organization is responsible for providing support or implementing recovery procedures if needed by any of the Volksbanks) and the establishment of a trust fund. Page 5

7 Liability scheme, VEG, VBVM LIABILITY SCHEME Central organization Sole responsibility for tasks resulting from 30a Volksbanken Leistungsfonds The Association contract is the basis of the liability scheme and it determines the central organization s responsibilities (tasks according to 30a, Austrian Banking Act). The central organization performs significant 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. The 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 of the VBVM include the promotion of cooperation in sales activities and the harmonization of processes. Page 6

8 Eight larger regional banks will be formed through mergers Year of last merger taking place Total assets in EUR bn. of Volksbanks (including total assets of banks to be merged) as of 30 June 2016, Volksbank Wien without central organization functions Volksbank Niederösterreich Volksbank Wien Volksbank Oberösterreich Volksbank Vorarlberg Volksbank Tirol Volksbank Salzburg Specialized institutions Sparda Bank Austria Ärzte-/Apothekerbank Volksbank Kärnten 1.2 Volksbank Steiermark start:gruppe t (IMMO Bank, start:bausparkasse) 1) 3.6 Sold 1) Signing of the sale of start:gruppe took place on 22 June 2016, closing of the transaction is expected for Q / Q Page 7

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

10 Distribution of Association s loans and advances to customers Distribution of loans and advances to customers by business fields (EUR bn.) 1) The volume of the Association s loans and advances to customers was EUR 26.4 bn. as of 30 June Focus on Austria: As of 30 June 2016 Austria accounted for ca. 94% 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 June 2016 Definition Corporate: operating revenue above EUR 50 m. Definition Corporate SME: volume of loan above EUR 1.5 m. and operating revenue below EUR 50 m. Definition SME: volume of loan below EUR 1.5 m. and operating revenue below EUR 50 m. Definition Retail SME: volume of loan below EUR 1 m. and operating revenue below EUR 50 m. Page 9

11 Distribution of non-performing loans Distribution of non-performing loans by business fields (EUR m.) 1) The volume of the Association s non-performing loans was EUR 1.1 bn. as of 30 June ) As of 30 June 2016 Page 10

12 Non-performing loans (NPL) 5,0 Development of Association s non-performing loans (EUR bn.) 4,5 4,0 3, ,0 2, , ,5 1,0 0, ,0 The NPL ratio could be further reduced in the second quarter. Based on loans and advances to customers of EUR 26.4 bn. the NPL ratio was 4.2% as of 30 June 2016, representing a decrease of 0.6%-points compared to the ratio as of 09/2015. The decrease in non-performing loans in the third quarter 2015 is mainly due to the fact that VBAG was split and the wind-down d unit immigoni portfolioabbau ag subsequently left the Association of Volksbanks. k Page 11

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

14 Volksbanks deposits 30 Development of Volksbanks deposits between 2003 and Q (EUR bn.) 1) Q Demand deposits Time deposits Savings deposits Other 2) Volksbank s deposits stood at EUR 20 bn. as of 31 March In the previous year the fact that Volksbank Osttirol-Westkärnten, Volksbank Gmünd and Volksbank Almtal left the Association of Volksbanks as well as the spin-off of immigon portfolioabbau ag resulted in a decrease in deposits. 1) Source: Oesterreichische Nationalbank 2) Other: foreign customers deposits Page 13

15 Level of liquidity is comfortable Expected development of the liquidity pool (EUR bn.) 5,0 4,5 4,0 3,5 3,0 2,5 2,0 15 1,5 1,0 0,5 0, / / / / / / / / / /2017 Bonds ECB credit claims Central bank deposits Cash, foreignn exchange, 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 4.4 bn. Page 14

16 Maturity profile as of 31 March 2016 Maturity profile of Association s issues (EUR m.) 1) , onwards Senior bonds Covered bonds Mortgage bonds Subordinated bonds 2) The Association of Volksbanks k has a covered dbond program backed by mortgages of the regional Volksbanks k at its disposal, long-term liquidity can be generated through the issuance of covered bonds. 1) Excluding nostro accounts 2) Upper and lower tier 2 capital Page 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, Schottengasse 10, 1010 Wien Page 16

18 Disclaimer This presentation is made for information i purposes only, it is non-binding and shall not be treated as giving ii any form of investment advice. di 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. Page17

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