BAUSPARKASSE WÜSTENROT AG - Investor Presentation l September 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
BAUSPARKASSE WÜSTENROT AG
Investor Presentation l September 2021
Agenda
1 2 3 4 5
Group Structure, Bausparkasse Funding and Liquidity Covered Bonds Annex
Governance and Wüstenrot AG
Issuance Strategy and Cover Pool
Management
Results and Ratios Ratios
13 September 2021 SO SCHNELL KANN'S GEHEN 2The Wüstenrot Group
From building society pioneer to one-stop-shop for financial services
History Sales Strategy
Start of lasting success story with the Strong focus on own sales channels throughout Group functions enable strong organisational
establishment of Bausparkasse Wüstenrot in the Group with 490 sales employees, independent integration within Group
1925 as the first building society in Austria contract staff, agents and partner banks
Focus on the retail segment with broad range of
Expansion of business with the establishment of products relating to savings, loans, retirement
an insurance company in 1973 provisions and insurance
Applied for banking license (“Wüstenrot & You”) to
Key data on the Wüstenrot Group* expand and supplement the business of the
Wüstenrot Group into a one-stop-shop for
Financial conglomerate with two key firms:
financial services
• Bausparkasse Wüstenrot AG
• Wüstenrot Versicherungs-AG
Total assets of the Group: EUR 11.5 billion
Total assets of Bausparkasse: EUR 6.5 billion
Headquarters
Employees of the Group (AT): 1,550
The headquarters of Bausparkasse Wüstenrot is
Employees of Bausparkasse (AT): 480
located in Salzburg, Austria.
*As at year-end 2020
13 September 2021 SO SCHNELL KANN'S GEHEN 3The Wüstenrot Group
Strategy
■ Strategic orientation on offering services as a one-stop-shop for financial services for retail customers in Austria
Balance sheet totals 2020 (in EUR million) Breakdown of the Group’s total assets
12,000 11,511
Slovakia Croatia
5.2% 2.3%
10,000
8,000
6,464
6,000
4,634
4,000
2,000
649
216
0
Group BSPK INSUR BSPK INSUR
Austria
92.6%
Note: In Hungary, a stake of 13.63% is held in Fundamenta-Lakáskassza, which is one of the largest mortgage banks
in the Hungarian market.
13 September 2021 SO SCHNELL KANN'S GEHEN 4Group/Ownership Structure
Only independent building society in Austria
Cooperative association, superordinate
Wüstenrot Wohnungswirtschaft reg.Gen.m.b.H. holding company of the Wüstenrot Group
5.51% 77.21%*
BWA Beteiligungs- & Verwaltungs-AG
100% 100%
94.49% Wüstenrot Datenservice
Wüstenrot & You AG
GmbH
Bausparkasse Wüstenrot AG
97.1%**
Wüstenrot Versicherungs-AG
100%
Building Society Slovakia
100% 100%
Insurance Slovakia Building Society Croatia
100% 13.63%
Insurance Croatia Building Society Hungary
*Minority shareholders: 12.63% UniCredit Bank Austria, 4.38% 3-Banken-Gruppe, 3.88% BAWAG P.S.K., 0.31% W&W, 1.59% other
**Minority shareholders: 2.9% Wiener Städtische Versicherungs-AG
13 September 2021 SO SCHNELL KANN'S GEHEN 5Wüstenrot Versicherungs-AG
Exclusive focus on retail business
■ 2020 strong increase in earnings before taxes (also due to coronavirus)
■ Solvency ratio (SCR): 152.4% as at 31 December 2020 ex transitional measures (2019: 165.3%)
■ Combined ratio: 93.5% in 2020 (property/casualty, after reinsurance)
Written premiums (in EUR million) Earnings before taxes (EGT)
461.6
(in EUR million)
500 445.6 443.3 60
47.9
400 50
265.4 247.2 242.3 40 34.6
300
27.4
30
200
20
100 190.8 193.0 195.6
10
0 0
2018 2019 2020 2018 2019 2020
Property/casualty Life Health
13 September 2021 SO SCHNELL KANN'S GEHEN 6Agenda
1 2 3 4 5
Group Structure, Bausparkasse Funding and Liquidity Covered Bonds Annex
Governance and Wüstenrot AG
Issuance Strategy and Cover Pool
Management
Results and Ratios Ratios
13 September 2021 SO SCHNELL KANN'S GEHEN 7Bausparkasse Wüstenrot AG: Ratings
in solid investment-grade range
Mortgage-backed covered bonds (Pfandbriefe) Long-term issuer credit rating (ICR)
Standard & Poor’s, Scope Standard & Poor’s
AAA l stable outlook BBB+ l negative outlook
■ Bausparkasse Wüstenrot AG is rated by the international rating agency Standard & Poor's. The ratings were last
confirmed on 8 December 2020 (BBB+) and on 7 January 2021 (AAA).
■ The mortgage-backed cover pool is additionally assessed by Scope Ratings. The rating (AAA) was last confirmed on
7 July 2021.
13 September 2021 SO SCHNELL KANN'S GEHEN 8Building society system in Austria
Differences to Germany
Austria Germany
Lending
Mostly first ranking loans Primarily junior ranking
Usually sole or main loan Mostly as supplement to home loans offered by a
Fixing of interest rate at time loan is taken out customer’s principal bank
Max. 80% LTV purs. to BausparkassenG (Building The interest rate on the loan is usually fixed when the
Societies Act), max. € 220.000 loan sum p.p. building society savings contract is signed
Fixed or variable interest, partially with interest rate caps
and floors
Savings
Government subsidy (“Bausparprämie”) on building Government subsidy (“Wohnungsbauprämie”) depends
society savings independent of income on income (up to EUR 35,000 taxable income)
Fixed term required to obtain government subsidy: Minimum term for subsidy eligibility: seven years
six years
13 September 2021 SO SCHNELL KANN'S GEHEN 9Bausparkasse Wüstenrot AG
Result 2020
Earnings before taxes Operating result
EUR 25.5 million EUR 37.9 million
2019: EUR 21.5 million 2019: EUR 27.2 million
• Increase of EGT* to EUR 25.5 million (2019: • Operating income rises to EUR 143.2 million
EUR 21.5 million) despite coronavirus (2019: EUR 134.9 million)
• Decrease in operating expenses to EUR 105.3
million (2019: EUR 107.7 million)
Extended net interest income Income from associates
EUR 95.9 million EUR 16.9 million
2019: EUR 91.1 million 2019: EUR 5.9 million
• Sharp increase, as there were no distributions
• Lower interest expenses due to less expensive by Wüstenrot Versicherungs-AG to
refinancing, but also lower net interest income Bausparkasse for 2019 (implementation of
due to loan repayments regulatory recommendation)
• Higher income from associates • Earnings before taxes Wüstenrot
Versicherungs-AG 2020: EUR 47.9 million
(2019: EUR 34.6 million)
* ”Ergebnis der gewöhnlichen Geschäftstätigkeit“
13 September 2021 SO SCHNELL KANN'S GEHEN 10Bausparkasse Wüstenrot AG
Result 2020
COVID-19 Capital ratios
1.9%
COVID 19 deferral rate
as at 31 December 2020
• BCM* crisis team remains active
• Government-ordered moratoria and voluntary 17.1% 20.3%
loan deferrals ease burden on customers
• Close monitoring of loan deferrals and CET1 ratio Total capital ratio
2019: 16.7% 2019: 20.2%
payment behaviour of customers
• Amendments to lending standards
Risk provisions Loan portfolio
1.01% EUR 4.9 billion
2019: EUR 4.8 billion
NPL ratio
• Increase in risk provisions to EUR 18.2 million
(2019: EUR 12.8 million), predominantly for • Increase in mortgage and other loans due to
general impairment allowances rising demand
• Increase in risk costs to EUR 12.4 million (2019: • Loans almost exclusively mortgage-backed
EUR 5.6 million)
*BCM: Business continuity management
13 September 2021 SO SCHNELL KANN'S GEHEN 11Bausparkasse Wüstenrot AG
Development of income statement
Net interest income Income from securities and equity
■ Solid net interest income despite low interest investments
100
rate environment 83.3 85.2
79.0 20
80 16.9
15.3
■ C/I ratio* 2020: 73.53% 15
60
■ Income from securities and equity 10
40
investments was lower in 2019 due to the 5.9
(recommended) suspension of dividend 20 5
payouts of Wüstenrot Versicherungs-AG.
0 0
2018 2019 2020 2018 2019 2020
Other operating income General administrative expenses Earnings before taxes (EGT)
50 70 61.5 40 36.5
39.8 57.1 56.1
38.4 60
40 35.6
50 30 25.5
30 21.5
40
20
20 30
20 10
10
10
0 0 0
2018 2019 2020 2018 2019 2020 2018 2019 2020
Values in EUR million
*C/I ratio defined as operating expenses/operating income
13 September 2021 SO SCHNELL KANN'S GEHEN 12Bausparkasse Wüstenrot AG
Balance sheet structure
■ Continuous increase in lending by focusing on core business of mortgage-backed retail bonds
■ Investment portfolio (including money market) of EUR 1.02 billion, in particular, to meet regulatory requirements (LCR + Pillar II)
■ Management decision to diversify funding structure (start of issuance of covered bonds in 2017)
Assets Shareholders’ equity and liabilities
7,000 6,537 6,566 6,464 7,000 6,537 6,566 6,464
537 516 190 271
6,000 536 6,000 557 326
576
600
1,189 1,203 1,017
5,000 5,000
4,000 4,000
3,000 3,000 5,531 5,434 5,212
4,811 4,846 4,912
2,000 2,000
1,000 1,000
0 0
2018 2019 2020 2018 2019 2020
Mortgage-backed and other loans Investment portfolio Other Amounts owed to customers Equity Securitized liabilities Other
In EUR thousand
13 September 2021 SO SCHNELL KANN'S GEHEN 13Regulatory capital ratios
Solid, slightly rising capitalisation
Capital ratio (in % RWA) Capitalisation requirements
25 (in % RWA)
20.2 20.3 22.5
18.4 20.3
20
3.5 3.3 20.0
3.6 3.3
15 Other capital
17.5
buffers
10 15.0 13.6
16.7 17.1 SREP add-on
14.9
5 12.5 2.5
Tier 2
10.0 3.1
0
17.1
2018 2019 2020 7.5 AT1
2.0
CET 1 AT 1 Tier 2 5.0 1.5
CET 1
2.5 4.5
■ Capital ratios significantly higher than regulatory minimum
0.0
■ Higher capitalisation by continuously reinvesting profits
Requirement Actual 2020
13 September 2021 SO SCHNELL KANN'S GEHEN 14Credit portfolio structure
As at 31/12/2020
Breakdown of loans by collateral Breakdown of loans by sector
6.7% 6.6% 0.1%
Housing (private
individuals)
Mortgage-backed Large-scale residential
construction (partly with
Not mortgage-backed state guarantee)
Other loans (e.g.
education, care)
93.3%
93.3%
■ Building Societies Act: Purpose housing, education or care, max. 80% LTV and max. EUR 220 thousand p. p.
■ Bausparkasse Wüstenrot AG: Focus home loans to individuals
■ High regional diversification throughout Austria, no foreign currency loans
■ 93.3% of loan portfolio mortgage-backed, remainder mostly with substitute collateral or local government guarantees (large-scale
residential construction)
13 September 2021 SO SCHNELL KANN'S GEHEN 15Loan portfolio
NPL ratio remains at very low level
5.0% ■ Historically low NPL ratios, also in
2020 despite coronavirus
4.0%
4.0% ■ In 2020, risk provisions were
predominantly general impairment
3.2%
allowances
3.0% 2.5%
2.0%
2.0% 1.7%
1.5%
1.0% 0.9% 1.0%
1.0% 0.8% 0.8% 0.8%
0.0%
2015 2016 2017 2018 2019 2020
Note: NPL ratio 2020 calculated pursuant to
Wüstenrot Austrian banks
new definition of EBA Guidelines; according
to previous methodology: 0.8%
Source Austrian banks: OeNB Financial Stability Report
13 September 2021 SO SCHNELL KANN'S GEHEN 16Real estate prices
Steady rise
■ No decline during the crises of 2008/2009 and 2012/2013; up to now no signs of decline due to coronavirus
■ Low level of household debt in international comparison
Residential real estate prices (2015 = 100) Debt of private households
200 125% 115.6%
100% 89.8%
150
75% 65.2%
50.2%
50%
100
25%
50 0%
2015 2017 2019 2021 Share in GDP Share in net income
Austria, total Austria, without Vienna Euro area Austria
Euro area Household debt AT (% GDP)
Debt: Status in 2019, source: Eurostat, OeNB
13 September 2021 SO SCHNELL KANN'S GEHEN 17Agenda
1 2 3 4 5
Group Structure, Bausparkasse Funding and Liquidity Covered Bonds Annex
Governance and Wüstenrot AG
Issuance Strategy and Cover Pool
Management
Results and Ratios Ratios
13 September 2021 SO SCHNELL KANN'S GEHEN 18Funding and liquidity
LR, LCR, NSFR and MREL
■ Liquidity position significantly higher than regulatory requirements
■ LCR declining at very high level, in particular, due to decision to reduce securities portfolio
■ Currently, MREL requirement of 22.96% (of Total Risk Exposure Amount) by 1 January 2024
Issuance of Senior Preferred Bonds: EUR 250 million sub-benchmark successfully issued in May 2021
Leverage ratio (in %) Liquidity coverage ratio (in %) Net stable funding ratio (%)
12 600 200
476.9
10 8.6 138.3
8.2 396.5 150 133.2
7.4
8 400 318.3
6 100
4 200
50
2
0 0 0
2018 2019 2020 2018 2019 2020 2019 2020
13 September 2021 SO SCHNELL KANN'S GEHEN 19Funding strategy
Building society deposits as primary source of funding
Funding structure as at 31 December 2020 ■ Clear focus on building society savings deposits:
1.3%
1.8% At a share of more than 91%, amounts owed to
5.7%
(retail) customers outweigh.
■ To achieve a broader diversification in the funding
Amounts owed to customers
structure, more issues on the capital market are
Securitized liabilities (Pfandbriefe) planned.
Tier 2 capital
■ Specifically, the refinancing structure will be further
91.3% Other (CI, OeNB) diversified by issuing sub-benchmark issues (senior
unsecured and covered bonds) and by obtaining
ECB liquidity.
Maturities of capital market issues (in EUR million)
300
250
200
150 Covered bonds
100 Tier 2 capital
50
0
< 3 months 3 - 12 months 1 - 5 years 5 - 10 years > 10 years
13 September 2021 SO SCHNELL KANN'S GEHEN 20Agenda
1 2 3 4 5
Group Structure, Bausparkasse Funding and Liquidity Covered Bonds Annex
Governance and Wüstenrot AG
Issuance Strategy and Cover Pool
Management
Results and Ratios Ratios
13 September 2021 SO SCHNELL KANN'S GEHEN 21Mortgage cover pool Key data as at 30 June 2021 Rating (Standard & Poor‘s, Scope) AAA (stable outlook) Total Cover Assets (incl. substitute assets of EUR 17.15 m RAGB) EUR 1,018 m Issued Covered Bonds EUR 394 m Over-collateralisation 158.50 % Number of mortgage loans 9,137 10 largest exposures 0.52 % Average loan size EUR 109,564 Currency 100 % in Euro Distribution residential / commercial 100 % / 0 % Geographical distribution 100 % Austria Average contractual remaining life (in years) 26.29 years NPLs in cover pool 0% Derivatives in cover pool no ■ The entire cover pool report (ATT) can be retrieved here. 13 September 2021 SO SCHNELL KANN'S GEHEN 22
Cover pool: geographically well-balanced
Breakdown by regions
Burgenland Vorarlberg
Salzburg 5.0% 2.1%
6.6% Lower Austria
22.8%
Tyrol
9.3%
Vienna
11.8%
Upper Austria
16.7%
Carinthia
12.7% Styria
12.9%
13 September 2021 SO SCHNELL KANN'S GEHEN 23Cover pool: small-sized loans
Breakdown by loan size in EUR thousand
300-500 500-1.000
3.9% 0.2%
0-100
26.2%
100-300
69.7%
13 September 2021 SO SCHNELL KANN'S GEHEN 24Cover pool: predominantly fixed-rate
Breakdown by interest rate type
variable
26.8%
fixed
73.2%
13 September 2021 SO SCHNELL KANN'S GEHEN 25Cover pool: long residual maturities
Breakdown by residual maturity
100% 94.9%
80%
60%
40%
20%
4.6%
0.0% 0.0% 0.0% 0.2% 0.3%
0%
0-1 1-2 2-3 3-4 4-5 5-10 >10
years years years years years years years
13 September 2021 SO SCHNELL KANN'S GEHEN 26Agenda
1 2 3 4 5
Group Structure, Bausparkasse Funding and Liquidity Covered Bonds Annex
Governance and Wüstenrot AG
Issuance Strategy and Cover Pool
Management
Results and Ratios Ratios
13 September 2021 SO SCHNELL KANN'S GEHEN 27Covered Bond legislation in Austria
■ Currently there are three legislations for covered bonds in Austria (similar in content)
■ Harmonisation of existing covered bond laws currently ongoing. New single Austrian covered bond law is
expected to enter into force in July 2022.
■ Bausparkasse Wüstenrot AG: Regulatory cap on total issued covered bond of 20% of total assets
Austrian Covered Bonds
Fundierte
Pfandbriefe Bankschuldverschreibungen
Hypothekenbank- Gesetz betreffend fundierte
Pfandbriefgesetz Bankschuldverschreibungen
gesetz
e. g. e. g. e. g.
Erste Group Bank Bausparkasse BAWAG P.S.K.
UniCredit Bank Austria Wüstenrot Raiffeisen
Landeshypotheken- Volksbank Wien
banken
13 September 2021 SO SCHNELL KANN'S GEHEN 28Contact information
■ Dr. Adrian Beck, CFA
Head of Funding and Balance Sheet Management
adrian.beck@wuestenrot.at
+43 (0) 5 7070 100 – 964
■ Mag. Christian Sollinger, CIIA
Head of Treasury, Controlling and Balance Sheet Management
christian.sollinger@wuestenrot.at
+43 (0) 5 7070 100 – 6172
13 September 2021 SO SCHNELL KANN'S GEHEN 29Disclaimer
This presentation has been prepared by Bausparkasse Wüsterot AG ("BWAG") exclusively for advertising purposes. It serves only as information and does not constitute financial analysis, advice or
a recommendation for financial instruments or an offer to sell or a solicitation to buy securities of BWAG.
Neither BWAG nor any of its directors, employees or associated companies are under the obligation to update the information in this presentation or to adjust it for future events or developments.
Furthermore, no claim, representation or warranty is made – explicit or implied – as to the statements in this presentation being accurate, complete, balanced and free of misleading statements.
Any public offering of debt securities of BWAG subject to the obligation to publish an Prospectus shall be made exclusively on the basis of the Capital Market Prospectus approved and published
by the Austrian Financial Market Authority (FMA) dated 28 April 2021, including the final terms and all supplements (Prospectus) available in electronic form on the website of the issuer
(https://www.wuestenrot.at/de/ueber-uns/konzern/investor-relations.html).
Approval of the Prospectus by the FMA may not be construed as an endorsement of the debt securities offered in the Prospectus. Only the information in the Prospectus is binding. Investors are
advised to read the Prospectus before reaching an investment decision to obtain an understanding of the potential risks and opportunities of an investment decision. Please pay special attention
to the risk information given in the Prospectus before reaching an investment decision.
Neither this presentation nor a copy thereof is permitted to be taken into or published in the United States of America, Australia, Canada, Japan, Ireland, the United Kingdom or any other country in
which the distribution, use or publication of this document would be unlawful. The debt securities are not registered under the United States Securities Act of 1933 or with any other authority of a
U.S. state or under the applicable securities laws of Australia, Canada, Japan, Ireland or the United Kingdom and may not be offered or sold in the United States on behalf of or for the account of
U.S. persons or other persons domiciled in Australia, Canada, Japan, Ireland or the United Kingdom. There will be no public offering of the debt securities in the United States, Australia, Canada,
Japan, Ireland or the United Kingdom.
The content of this presentation may not be deemed advice regarding legal, tax or investment matters. Investors must make their own assessments with respect to such matters and any other
consequences of investing in securities issued by BWAG, including the risks involved.
When you access this presentation, it is assumed that you have agreed to the following terms of BWAG: (i) you agree to receive such information in accordance with applicable laws (ii) you
acknowledge that you are solely responsible for your own assessment of BWAG's market position and conduct your own analysis and are also solely responsible for the opinion you reach
regarding the potential future performance of the securities issued by BWAG.
BWAG believes the sources used for this presentation to be reliable, but does not assume any liability for the completeness or accuracy of the information cited in this presentation. It is explicitly
pointed out by BWAG that this presentation may contain errors in the figures. The values given in this presentation are historical values. Past trends cannot be used to estimate future
developments.
Bausparkasse Wüstenrot AG: Legal form: Aktiengesellschaft, venue of registered office: Salzburg, FN: 319422 p, LG Salzburg
13 September 2021 SO SCHNELL KANN'S GEHEN 30You can also read
