BAUSPARKASSE WÜSTENROT AG - Investor Presentation l June 2022
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BAUSPARKASSE WÜSTENROT AG
Investor Presentation l June 2022
Agenda
1 2 3 4 5
Group Structure Bausparkasse Funding and Liquidity Covered Bonds Annex
Wüstenrot AG
Issuance Strategy and Cover Pool
Results and Ratios Ratios
09.06.2022 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 452 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 to expand and
Key data on the Wüstenrot Group* supplement the business of Wüstenrot Group into
a one-stop-shop for financial services
Financial conglomerate with two key firms:
• Bausparkasse Wüstenrot AG
• Wüstenrot Versicherungs-AG
Total assets of the Group: EUR 11.3 billion
Total assets of Bausparkasse: EUR 6.3 billion
Headquarters
Employees of the Group (AT): 1,450
The headquarters of Bausparkasse Wüstenrot is
Employees of Bausparkasse (AT): 457
located in Salzburg, Austria.
*As at year-end 2021, preliminary results
09.06.2022 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
■ No activities in Russia or Ukraine
Balance sheet totals 2021* (in EUR million) Breakdown of the Group’s total assets
12,000 11,291
Slovakia Croatia
4.8% 2.3%
10,000
8,000
6,341
6,000
4,562
4,000
2,000
609
224
0
Group BSPK INSUR BSPK INSUR
Austria
92.9%
Note: In Hungary, a stake of 13.63% is held in Fundamenta-Lakáskassza, which is one of the largest mortgage banks
*Preliminary results in the Hungarian market.
09.06.2022 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
09.06.2022 SO SCHNELL KANN'S GEHEN 5Wüstenrot Versicherungs-AG
Exclusive focus on retail business
■ Earnings before taxes at EUR 44.9 million in 2021(after one-time effects in 2020)
■ Solvency ratio (SCR): 186.6% as at 31 December 2021 ex transitional measures (2020: 152.4%)
■ Combined ratio: 98.1% in 2021 (property/casualty, after reinsurance)
Written premiums (in EUR million) Earnings before taxes (EGT)
(in EUR million)
500 445.6 443.4 457.8 60
47.9
400 50 44.9
247.2 242.3 254.8 40 34.6
300
30
200
20
100 193.0 195.6 197.6
10
0 0
2019 2020 2021 2019 2020 2021
Property/casualty Life Health
09.06.2022 SO SCHNELL KANN'S GEHEN 6Agenda
1 2 3 4 5
Group Structure Bausparkasse Funding and Liquidity Covered Bonds Annex
Wüstenrot AG
Issuance Strategy and Cover Pool
Results and Ratios Ratios
09.06.2022 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 stable outlook
■ Bausparkasse Wüstenrot AG is rated by the international rating agency Standard & Poor's. The ratings were last
confirmed on 13 April 2022 (BBB) and on 11 January 2022 (AAA).
■ The mortgage-backed cover pool is additionally assessed by Scope Ratings. The rating (AAA) was last confirmed on
14 September 2021.
09.06.2022 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. € 240.000 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
09.06.2022 SO SCHNELL KANN'S GEHEN 9Bausparkasse Wüstenrot AG
Result 2021*
Earnings before taxes Operating result
EUR 27.9 million EUR 37.6 million
2020: EUR 25.5 million 2020: EUR 37.9 million
• Increase of EGT** also in 2021 • Operating income rises to EUR 106.8 million
(2020: EUR 103.3 million)
• Increase in operating expenses to EUR 69.2
million (2020: EUR 65.4 million) driven by higher
contributions to deposit guarantee scheme
Extended net interest income Income from associates
EUR 83.4 million EUR 12.8 million
2020: EUR 95.9 million 2020: EUR 16.9 million
• Decrease of income from associates due to
• Lower interest expenses due to less expensive lower distributions by Wüstenrot
refinancing, but also lower interest income due Versicherungs-AG to Bausparkasse
to loan conditions • Earnings before taxes Wüstenrot
• Slight reduction of income from associates Versicherungs-AG 2021: EUR 44.9 million
(2020: EUR 47.9 million)
*2021: Preliminary results
** ”Ergebnis der gewöhnlichen Geschäftstätigkeit“
09.06.2022 SO SCHNELL KANN'S GEHEN 10Bausparkasse Wüstenrot AG
Result 2021*
COVID-19 Capital ratios
0.27 % 16.2 % 19.4 %
COVID 19 deferral rate
CET1 ratio Total capital ratio
as at 31 December 2021 2020: 17.1% 2020: 20.3%
• Close monitoring of loan deferrals and
payment behaviour of customers
• Amendments to lending standards • Decrease at a high level due to dividend
• Further significant decline in deferral rate since distributions (within Group)
end-2020
Risk provisions Loan portfolio
0.87 %
EUR 5.0 billion
NPL ratio 2020: EUR 4.9 billion
as at 31 December 2021
• Decrease in NPL volume to EUR 43.6 million • Constant demand in mortgage and other
(2020: EUR 49.8 million) loans
• Reversal of general impairment allowances as a • Loans almost exclusively mortgage-backed
result of a lower assessment of the credit risk for
loans with Corona deferrals
*2021 Preliminary results
09.06.2022 SO SCHNELL KANN'S GEHEN 11Bausparkasse Wüstenrot AG
Development of income statement
Net interest income Income from securities and equity
■ Slight decline in net interest income due to investments
100
low interest rate environment 83.3 85.2
77.7 20 16.9
80 70.6 15.3
■ C/I ratio* 2021: 64.8% 15 12.8
60
■ N.B.: 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 2021 2018 2019 2020 2021
Other operating income General administrative expenses Earnings before taxes (EGT)
50 70 61.5 40 36.5
57.1 55.1 55.6
38.4 60
40 35.6 27.9
50 30 25.5
30 21.5
40
20
20 30
12.9
20 10
10
1.6 ** 10
0 0 0
2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021
2021: Preliminary results; in EUR million
*C/I ratio defined as operating expenses/operating income
**In 2021, parts of “other operating income” were reclassified to “commission income” (and 2020 was adjusted accordingly).
09.06.2022 SO SCHNELL KANN'S GEHEN 12Bausparkasse Wüstenrot AG
Balance sheet structure
■ Continuous increase in lending by focusing on the core business of retail mortgage loans
■ Investment portfolio, 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 6,341 7,000 6,537 6,566 6,464 6,341
537 516 536 190
6,000 529 6,000 271 326
557 576
1,189 1,203 1,017 830 600 967
5,000 5,000
561
4,000 4,000
3,000 3,000 5,531 5,434 5,212
4,811 4,846 4,912 4,983
4,330
2,000 2,000
1,000 1,000
0 0
2018 2019 2020 2021 2018 2019 2020 2021
Mortgage-backed and other loans Investment portfolio Other Amounts owed to customers Equity Securitized liabilities Other
2021: Preliminary results; in EUR million
09.06.2022 SO SCHNELL KANN'S GEHEN 13Regulatory capital ratios
Solid capitalisation
Capital ratio (in % RWA) Capitalisation requirements
25 (in % RWA)
20.2 20.3 19.4 22.5
20 18.4
3.3 19.4
3.5 3.2 20.0
3.6
15 3.2 Other capital
17.5
buffers
10 15.0 13.6
16.7 17.1 SREP add-on
14.9 16.2
5 12.5 2.5
Tier 2
10.0 3.1
0
2018 2019 2020 2021 7.5 16.2 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 requirement
0.0
■ 2021: decrease at a high level due to intra-group dividend distribution
Requirement Actual 2021
2021: Preliminary results
09.06.2022 SO SCHNELL KANN'S GEHEN 14Credit portfolio structure
As at 31 December 2021
Breakdown of loans by collateral Breakdown of loans by sector
6.7% 6.2% 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%
93.7%
■ Building Societies Act: Purpose housing, education or care, max. 80% LTV and max. EUR 240 thousand p. p.
■ Bausparkasse Wüstenrot AG: Focus home loans to individuals
■ High regional diversification throughout Austria, no foreign currency loans
■ 93.7% of loan portfolio mortgage-backed, remainder mostly with substitute collateral or local government guarantees (large-scale
residential construction)
2021: Preliminary results
09.06.2022 SO SCHNELL KANN'S GEHEN 15Loan portfolio
NPL ratio remains at very low level
4.0%
3.2%
3.0%
2.5%
2.0%
2.0% 1.7%
1.5% 1.4%
0.9% 1.0%
1.0% 0.8% 0.8% 0.8% 0.9%
0.0%
2016 2017 2018 2019 2020 2021
Wüstenrot Austrian banks Note: NPL ratio starting from 2020 calculated pursuant to new definition
of EBA Guidelines; 2020 according to previous methodology: 0.8%
2021: Preliminary results
Source for Austrian banks: OeNB Financial Stability Report
09.06.2022 SO SCHNELL KANN'S GEHEN 16Real estate prices
Steady rise
■ No decline during the crises of 2008/2009 and 2012/2013; also 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
200 150%
118.5%
125%
150 94.2%
100%
70.2%
75%
54.5%
100 50%
25%
50 0%
2015 2016 2017 2018 2019 2020 2021 2022 Share in GDP Share in net income
Austria, total Austria, without Vienna Euro area Austria
Euro area Household debt AT (% GDP)
Debt: as at 2020; source: Eurostat, OeNB, IMF
09.06.2022 SO SCHNELL KANN'S GEHEN 17Agenda
1 2 3 4 5
Group Structure Bausparkasse Funding and Liquidity Covered Bonds Annex
Wüstenrot AG
Issuance Strategy and Cover Pool
Results and Ratios Ratios
09.06.2022 SO SCHNELL KANN'S GEHEN 18Funding and liquidity
LR, LCR and NSFR
■ Liquidity position significantly higher than regulatory requirements
■ LCR at very high level and declining in the long run, in particular, due to decision to reduce securities portfolio
Leverage Ratio (in %) Liquidity Coverage Ratio (in %) Net Stable Funding Ratio (%)
12 600 200
476.9
10 8.6 138.3
8.2 7.9 396.5 150 133.2 133,0
7.4
8 400 318.3 340,0
6 100
4 200
50
2
0 0 0
2018 2019 2020 2021 2018 2019 2020 2021 2019 2020 2021
2021: Preliminary results
09.06.2022 SO SCHNELL KANN'S GEHEN 19Funding strategy
Building society deposits as primary source of funding
Funding structure as at 31 December 2021* ■ Clear focus on building society savings deposits:
3.5%
1.8% At a share of more than 77,5%, amounts owed to
17.3% (retail) customers outweigh.
■ To achieve a broader diversification in the funding
Amounts owed to customers
structure, bond issuance is continuously expanded.
Securitized liabilities (Covered bonds)
■ Specifically, since 2021, the refinancing structure
Tier 2 capital
77.5% has been further diversified by issuing sub-
Other (CI, OeNB) benchmark issues (senior unsecured and covered
bonds) and by obtaining ECB liquidity.
Maturities of capital market issues (in EUR million)
500
400
300 Covered bonds
200 Senior Preferred
100 Tier 2 capital
0
< 3 months 3 - 12 months 1 - 5 years 5 - 10 years > 10 years
*Preliminary results
09.06.2022 SO SCHNELL KANN'S GEHEN 20Agenda
1 2 3 4 5
Group Structure Bausparkasse Funding and Liquidity Covered Bonds Annex
Wüstenrot AG
Issuance Strategy and Cover Pool
Results and Ratios Ratios
09.06.2022 SO SCHNELL KANN'S GEHEN 21Mortgage cover pool
Key data as at 1 June 2022
Rating (Standard & Poor‘s, Scope) AAA (stable outlook)
Total Cover Assets (incl. RAGB substitute assets) EUR 1,594 m
Issued Covered Bonds EUR 1.019 m
Over-collateralisation 56.0 %
Number of mortgage loans 13,737
10 largest exposures 0.42 %
Average loan size EUR 114,228
Currency 100 % Euro
Distribution residential / commercial 100 % / 0 %
Geographical distribution 100 % Austria
Average contractual remaining life 26.5 years
NPLs in cover pool 0%
Derivatives in cover pool no
■ The entire cover pool report (ATT) is online available.
09.06.2022 SO SCHNELL KANN'S GEHEN 22Cover pool: geographically well-balanced
Breakdown by regions
Burgenland Vorarlberg
Salzburg 4.8% 1.9%
6.5% Lower Austria
22.0%
Tyrol
9.4%
Vienna
11.9%
Upper Austria
18.1%
Carinthia
12.3% Styria
13.0%
09.06.2022 SO SCHNELL KANN'S GEHEN 23Cover pool: small-sized loans
Breakdown by loan size in EUR thousand
300-500 500-1.000
4.8% 0.7%
0-100
24.4%
100-300
70.1%
09/06/2022 SO SCHNELL KANN'S GEHEN 24Cover pool: predominantly fixed-rate
Breakdown by interest rate type
variable
27.6%
fixed
72.4%
09.06.2022 SO SCHNELL KANN'S GEHEN 25Cover pool: long residual maturities
Breakdown by residual maturity in years
100% 95.1%
80%
60%
40%
20%
4.4%
0.0% 0.0% 0.1% 0.2% 0.2%
0%
10
09.06.2022 SO SCHNELL KANN'S GEHEN 26Agenda
1 2 3 4 5
Group Structure Bausparkasse Funding and Liquidity Covered Bonds Annex
Wüstenrot AG
Issuance Strategy and Cover Pool
Results and Ratios Ratios
09.06.2022 SO SCHNELL KANN'S GEHEN 27Covered Bond legislation in Austria
■ Currently there are three legislations for covered bonds in Austria (similar in content)
■ New single Austrian covered bond law will 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
09.06.2022 SO SCHNELL KANN'S GEHEN 28Contact information
■ Adrian Beck, CFA
Head of Funding and Balance Sheet Management
adrian.beck@wuestenrot.at
+43 (0) 5 7070 100 – 964
■ Christian Sollinger, CIIA
Head of Treasury, Controlling and Balance Sheet Management
christian.sollinger@wuestenrot.at
+43 (0) 5 7070 100 – 6172
09.06.2022 SO SCHNELL KANN'S GEHEN 29Disclaimer
This presentation has been prepared by Bausparkasse Wüstenrot 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 27 April 2022, 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
09.06.2022 SO SCHNELL KANN'S GEHEN 30You can also read
