BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft
EANS-News: BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische
Postsparkasse Aktiengesellschaft
Consolidated Interim Reüort Q3 2014 (with
document)
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 9-month report BAWAG P.S.K. reports first nine months 2014 net profit of EUR 264 million, +69% · Net profit EUR 264 million, +69% from Q3 2013 YTD · Core revenues EUR 659 million, +18% · Cost-income ratio down to 52.1%, down 12.9pts · Business net interest margin improved by 27bps to 2.27% · Highly favorable AQR and stress test results for BAWAG P.S.K. · CET1 ratio (fully loaded) at 11.5%, up 2.1pts since year-end 2013 · Full year targets on track VIENNA, Austria - November 10, 2014 - BAWAG P.S.K. today reported net profit of EUR 264 million for the first three quarters of 2014, up 69% versus prior year. The increase was driven by strength in our core franchises. Annualized return on equity was 15.9%, up 5.0pts. Net interest margin improved 45bps to 1.89% with business net interest margin up 27bps. Operating expenses were down 20% and risk costs down 26%. Overall performance in the first three quarters reiterates that BAWAG P.S.K.'s historical transformation was successful in positioning it to produce strong results in 2014 and beyond. "As we completed the third quarter, we continued to see strong momentum across our business lines. The Bank is well positioned today and is consistently producing strong results quarter after quarter. Year to date, our net profit was EUR 264 million, up 69% versus prior year. This reiterates BAWAG P.S.K. being well prepared to successfully win in a competitive and evolving European banking market", said Chief Executive OfficerByron Haynes. "We are proud of our results and accomplishments. We expect this momentum to continue through the end of 2014 and into 2015." In addition, on October 26 the ECB disclosed the results of its comprehensive assessment of 130 European banks. BAWAG P.S.K. was successful in passing the EBA's stress test with CET 1 ratios of 11.9% for the baseline scenario and 8.5% for the adverse scenario. Both results were at least 50% higher than the minimum targets set by the ECB. As a result of the asset quality review, BAWAG P.S.K. had a 21bps adjustment which was significantly lower than the Austrian peer average of 95bps. Key Business Highlights BAWAG P.S.K. continued to successfully execute on its business plans in the first three quarters while maintaining a focus on providing competitive and innovative products to its customers. The Bank also further improved its cost structure and continued to strengthen its capital base. Retail Banking and Small Business was a key driver for the Bank's strong results. Core revenues increased by 14% driven by positive developments in NII and NCI, up 16% and 10% respectively. Consumer loan volume successfully grew by 11% to EUR 1.93 billion in a shrinking Austrian market. Our market share increased to 9%, up 100bps since year-end 2013. Funding costs continue to decrease as we focus on reducing our non-core funding, re-pricing initiatives and shifting our deposit mix. The direct banking subsidiary easybank continued its strong performance opening 35,000 new customer accounts in the first nine months 2014. Corporate Lending and Investments continued to strengthen its operating leverage by reducing its operating expenses by 16%. Austrian corporate new lending volumes rose by 34% versus the first three quarters 2013. The new business volume in our core international business of EUR 2.7 billion reflected a mix of investment grade security purchases combined with a continued portfolio diversification. Low risk costs of EUR 21 million and a NPL ratio of 1.87% for the first nine months 2014 in this segment reflect positive impacts from our de- risking actions of the previous periods. Treasury Services and Markets reported net interest income up 3%, operating income up 24% and a decrease of operating expenses of 41% due to an improved operating efficiency. Selective new investments and strategic sales supported the segment's strong performance. The total investment portfolio amounted to EUR 5.8 billion with an average duration of 3.8 years. 100% of the securities are investment grade, of which 85% were rated single A or higher. The geographic mix of the portfolio is quite diverse with no direct exposure to Russia, CIS, Hungary or South-Eastern Europe in the securities portfolio. For charts please refer to the attached PDF-document. About BAWAG P.S.K. BAWAG P.S.K. is one of Austria's largest retail banking institutions with 1.6 million customers and a well recognized national brand. The Bank focuses on three business segments: Retail Banking and Small Business include lending, savings, payment, card, investment and insurance services for private and small business customers. Austrian corporate lending activities and other fee-driven financial services as well as international activities are managed within the Corporate Lending and Investments segment. The majority of the Bank's lending activities are within Austria. The international business is focused on corporate and commercial real estate financing primarily in Western Europe. Treasury Services and Markets includes all activities associated with providing trading and investment services for the Group's treasury activities and the management of the Bank's portfolio of financial securities. BAWAG P.S.K.'s target is a capital efficient, low risk and low leverage business model while being the most efficient, centrally managed bank across Austria. Delivering competitive, transparent and simple products and services to our customers is the core of our strategy. BAWAG P.S.K.'s Investor Relations websitehttp://www.bawagpsk.com/BAWAGPSK/IR/ ENcontains further information about the Bank, including financial and other information for investors. Attachments with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/T6Kx6cUr http://resources.euroadhoc.com/us/NFqEe1LD Further inquiry note: Financial Community: Sat Shah (Chief Administrative & Strategy Officer) Tel: +43 (0) 5 99 05- 33050 E-mail:investor.relations@bawagpsk.com Media: Sabine Hacker (Head of Communications) Tel: +43 (0) 5 99 05-31210 E-mail: presse@bawagpsk.com e-mail: presse@bawagpsk.com end of announcement euro adhoc -------------------------------------------------------------------------------- Attachments with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/T6Kx6cUr http://resources.euroadhoc.com/us/NFqEe1LD company: BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft Georg-Coch-Platz 2 A-1018 Wien phone: +43 (0) 59905 mail: bawagpsk@bawagpsk.com WWW: www.bawagpsk.com sector: Banking ISIN: - indexes: stockmarkets: stock market: Luxembourg Stock Exchange, Euronext Amsterdam, Frankfurt, Wien, SIX Swiss Exchange language: English