[ g r o u p t r e a s u r y ]

Transcription

1 Investor Presentation May 2012 Raiffeisen-Landesbank Steiermark AG

2 2 1 Raiffeisen Banking Group Austria 2 Raiffeisen Banking Group Styria 3 Raiffeisen-Landesbank Steiermark AG 4 Funding of Raiffeisen-Landesbank Steiermark AG 5 Covered Bonds 6 Annex 2

3 3 Raiffeisen-Landesbank Steiermark AG at a Glance Raiffeisen-Landesbank Steiermark AG a Strong Regional Bank Market leader in Styria Solid equity base Concentration on corporate and retail customers Implementation of cost efficiency programs Low cost/income ratio Central bank of the Styrian Raiffeisenbanks Stable liquidity base Central liquidity management for the Raiffeisenbanks Second largest owner of RZB (14.9%) Majority shareholder of Landes-Hypothekenbank Steiermark AG (74.99% RLB, 25.01% State of Styria) Market Share of Raiffeisen Group Styria 818,000 customers (2/3 of the Styrian population) 50.7 % market share with customer deposits (Raiffeisen & Hypo) in bank branches (incl. RLB Stmk) Financial Figures of RLB Group as of Total balance sheet EUR 14.4 bn Annual profit EUR 113,9 m Tier 1 ratio 10.5% Bank branches 25 (inkl. Hypo) Employees 987 The Raiffeisen Group in Austria Largest banking group in Austria Most extensive branch network in Styria with a market share of 43% Total assets (unconsolidated as of ): EUR 310 bn RZB is the central institution of the banking group & parent company of RBI RBI specialised in corporate and investment banking Moody s Rating Issuer-rating A1 Long term A1 Bank financial strength rating C- Short term P-1 Outlook Stable Public sector cover pool Aaa Mortgage cover pool tbd 3

4 4 1 Raiffeisen Banking Group Austria 2 Raiffeisen Banking Group Styria 3 Raiffeisen-Landesbank Steiermark AG 4 Funding of Raiffeisen-Landesbank Steiermark AG 5 Covered Bonds 6 Annex 4

5 5 [ group treasury ] The Brand Raiffeisen Branch banks close to customers The Giebelkreuz One-stop financial services Mutual support on all Raiffeisen levels 100 % deposit protection Many customers are members Active social and economic role Raiffeisen is omnipresent Products and consulting for all phases of life Responsible, local entrepreneurs Personal and individual customer consulting Partner of small and medium-sized companies What distinguishes the brand Raiffeisen? An active economic and social role in everyday life, varied strengths and a wide-spread perception 5 Source: Institute for Branding, Geneva

6 6 Raiffeisen - the Most Successful Banking Group in Austria Unconsolidated total balance sheet ( ): 310 bn Market share: Total customer share 1) Saving deposits 2) Loans 2) 25.7 % 32.2 % 39 % The Recommender-Award 2010 presented to the Raiffeisen Banking Group (RBG) reflects our excellent customer orientation. 6 1) Source: FMDS annual report 2010, 2) Source: OeNB 02/2012

7 7 The Structure of Raiffeisen Banking Group Austria 532 Raiffeisenbanks 532 autonomous Raiffeisenbanks in Austria with a total of 2,214 branches, thereof 86 in Styria with a total of 324 branches (without RLB) 8 Raiffeisenlandesbanks and other shareholders Majority owners (87.80%) of RZB majority owner of RBI Free float: 21.5 % 7 as of

8 8 Allocation of Tasks in the Raiffeisen Network Raiffeisenbanks - Primary level universal banks - Customer-focus: a) Private customers b) Small and medium-sized businesses - Liquidity management for Raiffeisenbanks - Sector- and network-bank for Styria - Consulting-bank of Styrian Raiffeisenbanks - Holdings - Bank for corporate and retail customers - Foreign transactions - Treasury - Raiffeisen IT Center - Liquidity balance for Landesbanks - Holdings and special institutes - CEE business network-banks - Corporate and investment banking 8

9 9 1 Raiffeisen Banking Group Austria 2 Raiffeisen Banking Group Styria 3 Raiffeisen-Landesbank Steiermark AG 4 Funding of Raiffeisen-Landesbank Steiermark AG 5 Covered Bonds 6 Annex 9

10 10 The Raiffeisen Banking Group Styria Strong regional position 337 bank branches (incl. RLB) 3,109 employees 24.1 bn Euro total assets (2011) (Unconsolidated) Total Assets of the Raiffeisen Banking Group Styria in bn Customer Deposits of the Raiffeisen Banking Group Styria in bn. Granular deposits without concentration risk Average growth of demand and saving deposits: 4.8% p.a % market share with customer deposits

11 11 Impressive Market Shares in the Region 818,000 customers (2/3 of the Styrian population) 503,000 members of Raiffeisen 50.7% market share with customer deposits (Raiffeisen & Hypo) in 2010 Market Share in Styria 2010 Saving Deposits Market Share in Styria 2010 Demand Deposits Raiffeisen Banking Group, 46% Hypo Steiermark, 2% Sparkassen Group, 31% Volksbanken Group, 7% Incorporated banks, 14% Raiffeisen Banking Group, 38% Hypo Steiermark, 10% Sparkassen, 30% Volksbanken Group, 8% Incorporated banks, 14% 11 Source: OeNB

12 12 Raiffeisen Banking Group Styria as of (Unconsolidated RLB and 86 Raiffeisenbanks, in millions) Total Balance Sheet Operating Profit 25,000 20,000 23,058 23,675 24, , , , Profit or Loss on Ordinary Activities Equity Capital ,000 2,000 2,660 2,800 2, ,

13 13 Customer Guarantee reinforced by a strong intra-group Solidarity Deposit guarantee association of the Austrian Raiffeisen Banking Group complying with the requirements of Austrian banking act regarding deposit protection (up to 100,000 per customer) Solidarity co-operatives at the provincial level Voluntary support between Raiffeisenbanks & Raiffeisen-Landesbank Steiermark Raiffeisen customer guarantee association Styria and Austria Voluntary additional deposit protection at a provincial and national level Deposit guarantee system Customer guarantee association Solidarity association 13

14 14 Raiffeisen Customer Guarantee What is protected? All deposits, cash in banks and securities How much is protected? Unlimited (up to economic bearing ability) Who is protected? All customers, institutions, corporations, covered bond investors etc. 14

15 15 1 Raiffeisen Banking Group Austria 2 Raiffeisen Banking Group Styria 3 Raiffeisen-Landesbank Steiermark AG 4 Funding of Raiffeisen-Landesbank Steiermark AG 5 Covered Bonds 6 Annex 15

16 16 RLB Steiermark Group in Numbers Ratios (IFRS) Total assets 14,431,607 13,750,480 13,153,251 Interest surplus 199, , ,842 Annual profit before taxes 113, ,678 69,922 Contingent liabilities 307, , ,714 Non drawn customer credit lines 1,070,493 1,067,741 1,450,338 Creditable equity capital (group), according to BWG 1,092,062 1,094,214 1,006,887 Equity capital TOTAL (group), according to BWG 1,107,812 1,116,735 1,024,223 Creditable TIER I - capital (group), according to BWG 952, , ,282 Required equity capital TOTAL (group), according to BWG 726, , ,076 TIER I - ratio relating to all risks (group), according to BWG 10.5% 10.2% 9.5% Equity capital ratio relating to all risks (group), according to BWG 12.2% 12.1% 11.7% Cost-Income Ratio 53.7% 28.9% 55.1% Return on Equity vor Steuern 8.6% 35.9% 9.0% Return on Assets 0.8% 2.9% 0.5% Leverage Ratio 10.7% 10.5% 15.7% Bank branches Number of employees (average) ,002 in thousands of 16

17 17 Key Figures of RLB Steiermark Group (in millions) Total Assets Annual Profit (before taxes) 15,000 10,000 13,153 13,751 14, without RZB onetime effect (143) 5, Equity Capital (group) ROE (before taxes) 40% 1,500 1,000 1,305 1,349 30% 20% 35.9% without RZB one-time effect (13.4%) % 0% 9.0% 8.6%

18 18 Ownership Structure of Raiffeisen-Landesbank Steiermark AG 100 % 86 Raiffeisenbanks RLB Stmk Verbund egen RLB-Stmk Verwaltung egen Other members % 4.14 % 0.73 % RLB-Stmk Holding egen Raiffeisen-Landesbank Steiermark AG * None of the owners holds more than 5 % of the RLB-Stmk Holding egen. 18 as of

19 19 Diversified Business Areas of RLB Steiermark Group Regional Responsibility Employer Investor Targeted Sponsoring & Promotion in the Region One-Stop Financial Services Local Enterpreneurs 86 Raiffeisenbanks in Styria Active Participation Niche Player Regional Service Provider Partner 75% 25% Retail customers Business customers Group Treasury Others (e.g. Holdings) 8 Raiffeisen- Landesbanks 19

20 20 Raiffeisen-Landesbank Steiermark AG Group Units Group Units in Controlling, Back Office and Support Central management of risk and liquidity Collaboration of back office processing & control Intra group sales support Strategic positioning of products and markets by Capital Market & Treasury 2 Sales Brands Corporate Clients Retail Clients (Graz) Private Banking Retail Real Estate Financing Business & Retail Clients (Steiermark) Residential Properties (Cooperatives) Public Sector & Institutions Premium Banking 20

21 21 1 Raiffeisen Banking Group Austria 2 Raiffeisen Banking Group Styria 3 Raiffeisen-Landesbank Steiermark AG 4 Funding of Raiffeisen-Landesbank Steiermark AG 5 Covered Bonds 6 Annex 21

22 22 Stable Liquidity-Transfer from Styrian Raiffeisenbanks High levels of deposits by Styrian Raiffeisenbanks resulting in stable excess liquidity, which is mainly transferred to Raiffeisen-Landesbank Debit Carryovers of Styrian Raiffeisenbanks in bn

23 23 Funding of Raiffeisen-Landesbank Steiermark AG Uncovered Issuances/Deposits Pfandbrief, Covered Issuances Access to the Market via: Capital market Central Group-Treasury Larger institutional clients RLB, Hypo Smaller and medium-sized institutional clients RLB, Hypo, Raiffeisenbanks Retail clients Raiffeisenbanks 23

24 24 Funding Mix of the Group - Customer Deposits As of December % market share in Styria (banking group incl. Hypo Steiermark) Investors: Retail and institutional clients of the group Raiffeisenbanks and their clients Total Deposits: ~ EUR 5 bn Customer Deposits 33% Raiffeisenbanks 48% Saving deposits 19% Demand deposits 24 as of

25 25 Funding Mix of the Group - Public & Private Issuances Combination of retail funding and capital market issuances Investors: Retail and institutional clients Raiffeisenbanks International investors Total Issuances:~ EUR 6.3 bn Categories of Issuances 23% 8% Raiffeisenbanks 26% Retail Capital market 43% Schuldscheindarlehen 25 as of

26 26 Long-Term Funding of the RLB Steiermark Group Maturity Profile of Public & Private Issuances (incl. Schuldscheindarlehen) 1,250 m 1,000 m 750 m 500 m 250 m 0 m Well balanced maturity profile comprising also long maturities (up to 2051) 26 as of

27 27 Sustainable and Balanced Refinancing-Strategy Issuance strategy for 2012: approx. 70% senior unsecured, 30% covered issuances Senior unsecured retail issuances and private placements for Raiffeisenbanks Senior unsecured Schuldscheindarlehen (SSD) for institutional customers Covered bonds dedicated to institutional customers Continued build-up of cover pools Diversified maturity profile, to avoid concentration risk own network Retail PP for Raiffeisenbanks Institutional clients ~10% ~20% ~35% external Public issuances (covered) SSD (senior unsecured ) ~5% ~30% 27

28 28 Raiffeisen-Landesbank Steiermark AG an Attractive Issuer Moody s rating Issuer rating Long term A1 A1 BFSR C- Short term P-1 Outlook Public sector cover pool Mortgage cover pool Stable Aaa tbd Issuance programme up to EUR ,-- FMA-approved, notified to BaFin Austrian law Vienna Stock Exchange 28

29 29 1 Raiffeisen Banking Group Austria 2 Raiffeisen Banking Group Styria 3 Raiffeisen-Landesbank Steiermark AG 4 Funding of Raiffeisen-Landesbank Steiermark AG 5 Covered Bonds 6 Annex 29

30 30 Covered bond legislation in Austria Erste Group UniCredit Bank Austria Three legal bases for Covered Bonds in Austria Content is mainly congruent Plans for unification (one law for all issuers) Source: Österr. Pfandbriefforum ( 30

31 31 Comparison of Covered Bond Legislation Austria - Germany Austria Germany Special legislation yes yes Different cover pools (public, mortgage) no 2) yes Cover Register yes yes Limited to European cover pool assets 1) yes no Legal over-collateralisation yes yes Trustee/ government commissioner yes yes Legally established procedure in case of bankruptcy yes yes NPV over-collateralisation yes 3) yes 1) Limitation to the European Economic Area (EAA) and Switzerland 2) Not obligatory, only optional 3) NPV over-collateralisation is voluntary option in the articles of association of the issuer 31

32 32 Cover Pool Assets of RLB Steiermark AG Bankruptcy-proof transfer of assets from the primary level (trustee) All 86 Styrian Raiffeisenbanks are members of the transfer system Raiffeisenbank RLB cover pool RB registers loan as collateral sells loans and credits which are eligible to serve as cover issues covered bonds Mortgage Loans or Public Corporations as Debtors Investors 32

33 33 State-of-the-Art Software Solution - TXS Daily monitoring of cover-calculations by cover-pool manager and surveillance through market risk reporting Quarterly cover-pool report Separation of functions and implementation 4-eyes-principle in the system Customer data Account data Collaterals Cover pool assets Outstanding issuances Investor Real estate data Cover surplus Monitoring of cover-pool report; Separate evaluation of cover-pool by market risk reporting 33

34 34 Public Sector Cover Pool at a Glance (1/7) Cover pool Loans / securities to / of public corporations and with guarantees of public corporations respectively Legal framework Austrian law, Covered Bond Act (1905) Nominal value of cover pool EUR m Geographic allocation 100% Austria Number of cover pool assets 1,347 Regional allocation 94.5% Styria Origin of cover pool assets 57% RLB (EUR 410 m) 43% Raiffeisenbanks (EUR 310 m) Rating Aaa by Moody's Number of debtors 466 Average maturity 11.7 years Average credit balance EUR 541,000 Volume of currently outstanding covered bonds EUR 555 m Median credit balance Largest loan EUR 139,170 Over-collateralisation 29.98% EUR 200 m Cut Off Date

35 35 Public Sector Cover Pool (2/7) Regional Distribution Styria 94.5% Remainder 5.5% Carinthia 0.01% Salzburg 0.03% Tyrol 1.83% Vienna 2.09% Lower Austria 0.83% Vorarlberg 0.45% Burgenland 0.08% Upper Austria 0.18% 100% Austrian cover pool Almost exclusively Styrian cover pool assets No CEE-exposure 35 as of

36 36 Public Sector Cover Pool (3/7) Interest Rate Terms Debtors and Guarantors 6% 39% 32% 42% 61% Floating Fixed 2% 18% Forderungen Claims to regional an örtliche authorities Gebietskörperschaften Forderung Claims guaranteed gewährleistet by regional durch örtliche authorities Gebietskörperschaften Staat State Forderungen Claims to regional an Regionalregierungen governments Forderungen Claims guaranteed gewährleistet by regional durch governments Regionalregierungen Majority of cover pool contains claims to public authorities in Styria (original business of Raiffeisenbanks) 36 as of

37 37 Public Sector Cover Pool (4/7) Number of Loans Share of Volume 204 Cover pool Raiffeisenbanks Internal cover pool 43 % 57 % 1143 Number Size of Cover Pool Assets Granular structure resulting from small-sized cover pool assets from Raiffeisenbanks Cover Pool nominal value ~ EUR 770 m (as of May 7 th, 2012) 0 0 to 100' 100' to 500' 500' to 1.000' 1.000' to 5.000' 5.000' to ' >10.000' T/ 37 as of

38 38 Public Sector Cover Pool (5/7) Regional distribution in Styria 63 m 421m Continued build-up of the cover pool Upper Styria 151 m Graz 30 m Western Styria Eastern Styria 55 m Southern Styria 500 m 400 m 300 m Maturity profile of cover pool assets Covered bonds Covered Pool Covered Bond Issuances 200 m 100 m 0 m 1-2 years 3-4 years 5-6 years 7-8 years years years years > years as of

39 39 The Raiffeisen-Landesbank Steiermark inaugural Public Sector Covered Bond Key facts (6/7) Issue-type: Public Sector covered bond Volume: EUR 500,000,000 Date of issue: 28. Sept Tenor: Oct., 7 th 2011 to Oct., 4 th 2014 Maturity: Oct., 7 th 2014 Interest rate: Spread: Rating: Collateral: Documentation: Listing: 2.125%, fixed annual coupon, act/act Mid Swap + 55 bp Aaa cover pool rating (Moody s) Public (according to FBSchVG) Basis prospectus of RLB Steiermark Vienna Stock Exchange, Unlisted Securities Market (USM) Denomination: EUR 100,000 Leadbanks: Co-Leadbanks: 39

40 40 Allocation of Investors (7/7) Austria 35% Danmark 6% France 4% Remaining Europe 1% Geographical Allocation Considerable demand from abroad (65 %) Majority from Germany (54 %) Solid domestic demand (35 %) Remainder distributed across Europe Germany 54% Pension funds 10 % Insurances 2% Others 2% Investor Allocation Banking sector covers 65% Approx. 1/3 of the volume was allotted to development banks (11%), funds as well as pension funds (10% each) Remaining 4 % were distributed among insurances and other investors Funds 10% Development Banks 11% Banks 65% 40

41 41 Mortgage Cover Pool at a glance (1/4) Plans to have the cover pool rated by Moody s Legal framework: Covered Bond Act (1905) / Gesetz betreffend fundierte Bankschuldverschreibungen, FBSchVG Source: Primary banks in the Raiffeisen network and own business Voluntary Loan-to-Value limit at 60% No NPLs in the cover pool (NPLs = 90 days delay in payment) Mainly prime mortgage loans on Austrian property Customer rating: Limits and continuous monitoring Property value >EUR 500,000 -> obligatory external approval certificate Voluntary over-collateralisation of 10% independent of the requirements by the rating agency Early internal warning process in case of overdraft > 10 days Separate check of loan agreements by RLB Steiermark Expected volume of the cover pool by 2015/2016: EUR 2-3 bn 41

42 42 Mortgage cover pool at a glance (2/6) Cover pool Mortgage loans entered in the Austrian land register Legal framework Austrian law, Covered Bond Act (1905) Nominal value of cover pool EUR m Geographic allocation 99.3% Austria 0.7% Germany Number of cover pool assets 1,053 Regional allocation 91.8% Styria Origin of cover pool assets 29.63% RLB / 70.37% Raiffeisenbanken Rating in progress Number of debtors 775 Average maturity years Average credit balance EUR 99,212 Volume of currently outstanding covered bonds EUR 5 m Median credit balance EUR 70,000 Over-collateralisation ~1.989% Largest loans EUR 2,455,000 LTV residential 61.75% Ratio residential / commercial Currency of cover pool assets 77% / 23% 100% in EUR LTV commercial 51.94% Cut off date

43 43 Mortgage Cover Pool (3/6) Regional distribution Styria 91.8% Remainder 8.2% Bavaria 0,7% Burgenland 0,5% Carinthia 2.2% Lower Austria 0,8% Upper Austria 0,2% Salzburg 1,0% Tyrol 0.4% Vienna 2.4% 99.3% Austrian Cover Pool; no CEE-Exposure Majority of Cover Pool Assets are of Styrian Origin 43 as of

44 44 Mortgage Cover Pool (4/6) Interest Rate Terms Use of Cover Pool Assets 4% 2.9% 10.0% Floating Fixed 96% 87.1% Tourism Commercial Use Residential, Private Use Majority of the cover pool contains residential, private cover pool assets (original business of Raiffeisenbanks) 44 as of

45 45 Mortgage Cover Pool (5/6) Number of Loans Share of Volume 335 Cover pool Raiffeisenbanks Internal cover pool EUR m 30% 718 EUR m 70% Size of Cover Pool Assets Number Granular structure due to small volumes of the individual cover pool assets from Raiffeisenbanks Over 80 % residential loans Cover Pool nominal value ~ EUR 180 m (as of May 7 th, 2012) ' 300' - 500' 500' ' 1.000' ' > 2.000' T/ 45 as of

46 46 Mortgage Cover Pool (6/6) Regional Distribution in Styria 10 m 45 m Balanced maturity structure of the cover pool Upper Styria 30 m 3 m Western Styria Graz Eastern Styria 8 m Southern Styria Cover pool-volume Styria: EUR 95.6m 100 m 80 m 60 m 40 m Maturity Profile of Cover Pool Assets Covered Bonds Cover Pool Covered Bond Issuances Cover pool is currently being developed 20 m 0 m years 3-4 years 5-6 years 7-8 years 9-10 years years > 15 years years as of

47 47 Contact Arndt Hallmann Manging director Capital Martkets & Treasury / arndt.hallmann@rlb-stmk.raiffeisen.at Dr. Stefan Dahm Director Capital Markets & Treasury / stefan.dahm@rlb-stmk.raiffeisen.at Bernhard Mellitzer Funding / bernhard.mellitzer@rlb-stmk.raiffeisen.at Karin Brettenthaler Funding / karin.brettenthaler@rlb-stmk.raiffeisen.at Hannes Meixner Institutional Sales / hannes.meixner@rlb-stmk.raiffeisen.at Herwig Reisenhofer Institutional Sales / herwig.reisenhofer@rlb-stmk.raiffeisen.at 47

48 48 Disclaimer The information contained in these materials is solely made for information purpose and does not constitute an offer to buy or sell or solicitation of an offer to buy or sell any security, instrument or derivative or to provide any particular service. Any information herein is derived from sources, believed to be reliable, but we make no representation or warranty with respect to the correctness, accuracy, reasonableness or completeness of such information. Raiffeisen-Landesbank Steiermark AG disclaim any and all liability relating to these materials, including without limitation, any express or implied representations or warranties for statements or errors contained in, or omissions from, this document. Raiffeisen-Landesbank Steiermark AG shall not be liable for any loss or liability suffered by the use of any information contained in these materials. These materials do not constitute a research report and the views or information should not be viewed as independent of our sales personnel. Such interest may conflict with your interests and recipients should be mindful of such potential conflicts of interest when reviewing this document. These materials do not constitute legal, regulatory, investment or tax advice or an investment recommendation. We recommend to consult with your own investment or tax advisor. These materials are confidential and proprietary to Raiffeisen-Landesbank Steiermark AG and should not be disclosed to any third party without prior written consent of Raiffeisen-Landesbank Steiermark AG. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to local law or regulation. Raiffeisen-Landesbank Steiermark AG has no obligation to update, modify or amend this presentation or to otherwise notify a recipient in the event that any opinion or forecast set forth herein, changes or becomes inaccurate. 48

49 49 1 Raiffeisen Banking Group Austria 2 Raiffeisen Banking Group Styria 3 Raiffeisen-Landesbank Steiermark AG 4 Funding of Raiffeisen-Landesbank Steiermark AG 5 Covered Bonds 6 Annex 49

50 50 Styria Austria s Second Largest State Size: 16,401 km² Inhabitants: 1,210,614 Capital: Graz 542 municipalities Rating (S&P): AA+ outlook negative 50

51 51 From an Agriculturally/Industrially-Oriented State Deterioration of the economic situation due to weak business activity 50s 60s 70s 80s Primary industry Agricultural environment Strong cyclical fluctuations compared to the rest of Austria Structural problems in industry Crisis in the steel economy Isolation at the periphery of Western Europe, hardly any foreign investments Stagnation of population High unemployment rate Low regional economic performance Expenditures for R&D and innovative activities below average 51

52 52 to a Successful Technological Region Austria moves into the centre of Europe and into focus of foreign investors 90s 00s 10s 20s Strategic concepts and an economic policy which are technology- and innovation-oriented High expenditures for R&D Cluster development through cooperations Improved transfer knowledge and human resources between universities and companies Regional and national/international technological initiatives and institutions Business development Growth of foreign direct investments due to centrality in the EU Growth of export economy 52

53 53 Cooperation through Clusters human. technology. styria. (70 corp.) Materials Cluster Styria (150 corp.) Eco-World Styria (160 corp.) Timber Industry Cluster Steiermark (140 corp.) Creative Industries Styria (500 corp.) ACstyria Autocluster (200 corp.) Food Technology Cluster (45 corp.) 53

54 54 Business Location Styria Economic growth in Styria has been in the fast lane, compared to Austria, since Fast recovery after the 2008/2009 crisis. 6% 4% GDP/Styria GDP/Austria 2% % -4% -6% 54 Source: WIFO

55 55 Development of the Unemployment Rate in % Styria quickly managed to eliminate the negative deviation of the unemployment rate compared to Austria in the 90s. The unemployment rate is clearly below the EU-Average. 14% Styria Austria EU-27 12% 10,8% 10,6% 11,0% 11,1% 11,2% 11,0% 10,3% 11,0% 11,7% 11,7% 10% 9,2% 9,1% 8% 8,2% 8,4% 8,1% 8,1% 7,4% 6,4% 6,5% 7,2% 7,3% 7,0% 7,3% 6,8% 6,4% 6,1% 7,7% 7,0% 6,4% 6% 4% 6,6% 7,0% 7,1% 7,2% 6,7% 5,8% 6,1% 6,9% 7,0% 7,1% 7,3% 6,8% 6,2% 5,8% 7,2% 6,9% 6,7% 2% 0% Source: Arbeitsmarktservice Steiermark/ Austrian calculation

56 56 Styrian Real Estate Market Prices in 2010 for second-hand freehold apartments in Vienna Ø EUR 1,940/m², in Graz Ø EUR 1,570/m² Moderate price increase building grounds in attractive urban locations in Vienna Ø EUR 320/m², in Graz Ø EUR 237/m² Prices in Vienna are constant, while they are rising in Graz. office rents in inner-city locations in Vienna Ø EUR 15.8/m², in Graz Ø EUR 8.6/m² Office rents in Graz are rising slightly; in Vienna more significantly. 56 Source: Immobilien-Preisspiegel 2011, Austrian Chamber of Commerce

57 57 Financial Profile of the RLB Steiermark Group 57

58 58 RLB Steiermark Group Balance Sheet (IFRS) I. Assets (in thousands of Euro) Cash reserve 277, , ,369 30,002 Loans and advances 8,036,968 7,697,114 7,380,691 7,186,997 minus: Impairment losses on loan and advances -281, , , ,145 Trading assets 1,728,932 1,527,923 1,552,316 1,989,768 Financial assets - designated at fair value through profit or loss 875, , , ,108 Financial assets - available for sale 1,882,219 2,018,647 2,774,272 2,554,452 Investment in associates 1,233,858 1,195, , ,482 Intangible assets 15,259 18,493 16,862 16,176 Fixed assets 66,625 29,450 29,757 33,028 Current tax assets 21,731 15,306 12,934 12,050 Deferred tax assets 7,513 36,415 15,155 14,575 Other assets 567, , , ,976 Total Assets 14,431,607 13,750,480 13,153,251 13,119,469 II. Liabilities (in thousands of Euro) Financial liabilities 6,507,750 6,398,449 6,490,121 6,274,125 Trading liabilities 920,027 1,165,229 1,080,240 1,217,297 Financial liabilities - designated at fair value through profit or loss 5,417,622 4,631,917 4,515,467 4,678,341 Provisions 71,343 70,183 68,766 74,582 Current tax liabilities 2,004 1, ,332 Deferred tax liabilities 3, ,342 0 Other liabilities 160, , , ,249 Nominal capital 135, , , ,297 Capital reserves 409, , , ,378 Retained earnings 640, , , ,072 Consolidated profit 73, ,089 58,494 59,793 Non controlling interests 90,519 83,348 75,379 69,003 Total equity and liabilities 14,431,607 13,750,480 13,153,251 13,119,469 in thousands of Euros 58

59 59 RLB Steiermark Group Income Statement (IFRS) III. Statement of comprehensive income (IFRS) Interest and interest-like income 376, , , ,764 Net income from equity participations 87, ,827 12,984 15,784 Interest expenses and interest-like expenses -264, , , ,069 Net interest income 199, , , ,479 Net provisioning for impairment losses -26,295-45,063-89,487-44,322 Net inerest income after provisioning 173, ,122 81, ,157 Net fee and commission income 34,321 34,070 32,762 34,893 Net trading income 8,738 1,722 15,389 46,746 Net income from financial investment - designated at fair value through profit or loss 45,562 55,972 24,776-90,053 Net income from financial assets - available for sale -44,452-12,695 5,248-74,061 General administrative expenses -161, , , ,219 Other net operating income 57,795 63,448 68,897 65,348 Profit before tax 113, ,678 69,922 46,811 Income taxes -33,897 39,004-5,596 5,075 Consolidated profit after tax 80, ,682 64,326 51,886 thereof attributable to shareholders of RLB Stmk 73, ,089 58,494 59,793 thereof attributable to non-controlling interests 6,312 8,593 5,832-7,907 Net gains (losses) on financial assets available for sale (afs-reserve) 3,450 15,350 25,235-13,388 Changes in equity of companies valued at equity -35,451 2, Group total comprehensive income 48, ,901 89,561 38,498 thereof attributable to shareholders of RLB Stmk 40, ,461 81,761 46,224 thereof attributable to non-controlling interests 7,349 9,440 7,800-7,726 in thousands of Euro 59