Post on 03-Jun-2020
Bank Austria – Öffentliche Pfandbriefe(Public Sector Covered Bonds)
March 2010
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UNICREDIT GROUP / BANK AUSTRIA: OVERVIEW
PUBLIC COVERED BOND OF UNICREDIT BANK AUSTRIA
AUSTRIAN LEGAL FRAMEWORK PFANDBRIEFE
AGENDA
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AGENDA
UNICREDIT GROUP / BANK AUSTRIA: OVERVIEW
PUBLIC COVERED BOND OF UNICREDIT BANK AUSTRIA
AUSTRIAN LEGAL FRAMEWORK PFANDBRIEFE
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Market share(1) Ranking Logo
Austria 16.3% # 1
Emerging Europe 7.0% # 1 e.g.
Italy 13.5% # 2
Germany 3.5% # 3
UNICREDIT GROUP IS “A TRULY EUROPEAN BANK”
Market capitalisation (EUR bn)as of May 31, 2010
Leading position in core markets
(1) Market shares in terms of loans as of Feb10. Source: UniCredit Research Network
At a glance*
Strong local roots in 22 European countries
Approx. 163,000** employees, 9.600** branches
EUR 185 bn assets under management
Loans and receivable with customers: EUR 565 bn
Customers deposits and securities: EUR 593 bn
EUR 27.6 bn operating income in 2009
Aa3 Stable/A Stable/A Negative long-term ratings(Moody's, S&P, Fitch)
* As of Mar 2010** Including all employees and branches of subsidiaries consolidated proportionatelySource: FY2009 and 1Q10 Financial Report
32,0
33,6
37,4
39,7
41,9
43,5
45,0
68,5
130,1
54,8
RBS
UCG
CS
ST.CHART
UBS
BARC
LLOYDS
BNP
SAN
HSBC
3rd in EURzone
UNICREDIT GROUP: OVERVIEW
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UniCreditHolding Function
CIB & PB StrategicBusiness Area
CEE Region
Retail Network
Italy
CIB NetworkGermany
CIB NetworkAustria
Private BankingGermany
Private BankingAustria
Retail NetworkGermany
Retail NetworkAustria
Private BankingItaly
ProductFactoriesProduct
Factories
Note: Retail, CIB and PB Poland Networks Divisions will be established cancelling the current Poland’s Markets function upon completion of Poland’s divisionalisation project
HIGH DIVISIONAL COMPETENCE ENSURES GROUPWIDESTANDARDS BEYOND VARIOUS LEGAL ENTITIES ACTING AS ISSUER
CIB Network
Italy
UNICREDIT GROUP: OVERVIEW
IssuingLegal Entity
All CEECountries
Retail StrategicBusiness Area
UniCredit Bank Austria
UniCredit Bank AG (HVB)
UniCredit S.p.A
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2009 results confirm the solid franchise
UNICREDIT & BANK AUSTRIA: OVERVIEW
EXECUTIVE SUMMARY ON 2009 FINANCIALS
Even in a difficult market
environment
Key pillars
Diversificationbenefits
Cost control
Deleveraging
Capital strength
UniCredit Group
1.7 bn net profit in a challenging year
Operating profit up 20.3% y/y, or +27.5%at constant FX and perimeter
Operating costs -8.2% y/y, -5.3% atconstant FX and perimeter
Effective deleveraging:total assets -11.2% from Dec 08;Tangible Assets / Tangible equity from29x to 22x pro-forma for 4 bn capitalincrease announced in September 2009and finalized in February 2010
Tier 1 at 8.63%, ~9.5% pro forma(Core Tier 1 ~8.47%) for 4 bn capitalincrease
Bank Austria Group
1.1 bn consolidated net profit in achallenging year
Operating profit up 10.3% y/y
Operating costs -8.1% y/y,Cost/Income Ratio at 49.9%
Total assets (194 bn) down by 12% vs.December 2008
Core Tier 1 ratio at 8.33%
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Q1 2010
Key pillars
1Q10 results reflect a focus on cost and sustained profitability despite still high loan loss provisions
Cost control
Balance sheetstabilization
Capital strength
Focus on AssetQuality
UNICREDIT & BANK AUSTRIA: OVERVIEW
Core Tier 1 basically stable at 8.45% (-2bp q/q) reflecting RWAs back tomoderate growth (mainly due to FX) anddividend accrual
Diversificationbenefits
520 mln net profit in 1Q10 (+40.1% q/qand +16.5% y/y)
Revenues +5.6% q/q and +3.7% y/y,with resilient q/q trend of net interestand net commissions
Loan provisions keep decreasing(-13.4% q/q); 127 bp cost of risk
Asset quality deterioration slowing:gross impaired loans +4.3% q/q; grossNPLs +4.2% q/q
Total assets back to moderate growthwith loans stabilizing, higher deposits,lower net interbank exposure
UniCredit Group
Cost/income ratio -2.0 p.p. q/q to57.0%, thanks to structural efficiency(-2,683 FTE in 1Q10)
242 mln consolidated profit in 1Q10 ina still challenging environment
Revenues on level of previousquarters
Operating costs -1% q/q
Y/y a reduction of total assets (-6,3%),moderate growth in 1Q10
Core Tier 1 rose to 10.01 % - followinga capital increase of € 2 bn carried out inMarch 2010
Loan loss provisions decreasing(-33% q/q); 140 bp cost of risk
Bank Austria Group
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STRONG CAPITAL POSITION: CORE TIER 1 AT 10.01%, TOTALCAPITAL RATIO AT 12.37% (BA)
Core Tier 1 stands at 10.01 % - following a capital increase of EUR 2 bn carried out in March 2010 – hereby exceeding
the ratio of most Austrian competitors
Safe capital base as Bank Austria – unless its main competitors – did not take up state capital to be repaid at a later
stage
Deleveraging of RWA (-10% since the end of 2008) also contributed to the current strong capital ratios
Core Tier 1 Ratio (Basel 2)
+168bp
March 10
10,01%
Dec. 09
8,33%
+145bp
March 10
12,37%
Dec. 09
10,92%
Total Capital Ratio (Basel 2)
BANK AUSTRIA GROUP: OVERVIEW
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Customer Deposits (€ bn)
Leverage(1)
Customer Loans (€ bn)
Shareholders’ Equity (€ bn)
(1) Defined as Assets/ Equity as per IFRS
Leverage ratio improving to 11.6% mainly due to €
2 bn capital increase
Customer loans increased by 2% at BA Group level
Increase in particular in some areas: Turkey,Romania, Croatia, Retail Austria
Securities in Issue (€bn)
Both customer deposits and securities up
Customer loans funded by more than 100% bycustomer deposits and securities
Increase in equity mainly due to € 2 bn capital increase
in March 2010 and retained profit
BALANCE SHEET EVOLUTION IN 1Q10 AGAIN SOLID (BA)
Dec 09 March 10
123.6 126.5
Dec 09 March 10
97.0 97.6
Dec 09 March 10
28.8 29.7
March 10Dec 09
13.5%11.6%
March 10Dec 09
14.417.4
BANK AUSTRIA GROUP: OVERVIEW
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RATING OVERVIEW
(as of May 2010)
1) Grandfathered debt is rated Aa2 (senior debt) and respectively Aa3 (subordinated debt) by Moody’s and AA+ (senior and subordinated debt) byStandard & Poor’s. This relates to securities issued before 31 Dec. 2001 which are guaranteed by the City of Vienna.
Short Term Long Term Subordinated Short Term Long Term Subordinated Short Term Long Term Subordinated
P-1 A1 A2 A-1 A A- - - -
negative outlook stable outlook
P-1 Aa3 A1 A-1 A A- F1 A A-
stable outlook stable outlook negative outlook
Bank Austria Public
Covered Bond
UniCredit S.p.A.
Bank Austria 1)
FitchMoody's S&P
Aaa - -
Moody's S&P Fitch
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AGENDA
UNICREDIT GROUP / BANK AUSTRIA: OVERVIEW
PUBLIC COVERED BOND OF UNICREDIT BANK AUSTRIA
AUSTRIAN LEGAL FRAMEWORK PFANDBRIEFE
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EXECUTIVE SUMMARY BANK AUSTRIAPUBLIC SECTOR COVER POOL
Aaa Rating by Moody‘s
Strong and long existing legal framework for Austrian Pfandbriefe
All cover pool assets are either originated in Austria (98.8%) or originated in Europe and
guaranteed by the Republic of Austria (1.2%)
Average Volume of loans less than EUR 1 mn
Average seasoning is 6 years
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PARAMETERS OF COVER POOL AND ISSUES
Total Value of the Cover Pool as of 31.03.2010 in EUR equivalent: 2,785 mn
• thereof in EUR: 1,807 mn
• thereof in CHF*: 181 mn
• thereof public sector bonds in EUR equivalent: 797 mn
Moody’s Rating: Aaa
Nominal Over-Collateralisation: 176.5%**
Total Value of Sold Covered Bonds as of 31.03.2010 in EUR: 1,007 mn
* Cover Pool incl. FX Haircut 15.7%.
** Austrian Mortgage Law requires a nominal over-collateralisation of min. 2%. Additionally, in its Articles of Association,
UniCredit Bank Austria commits itself to an over-collateralisation on a present value basis.
Parameters of Issues:
Total Number 40
Average Maturity (in years) 5.3
Average Volume (in EUR) 25,182,555
Parameters of Cover Pool
Weighted Average Life (in years incl. Amortization) 10.2
Contracted Weighted Average Life (in years) 13.5
Average Seasoning (in years) 6.3
Total Number of Loans 3,164
Total Number of Debtors 1,041
Total Number of Guarantors 102
Average Volume of Loans (in EUR) 870,886
Stake of 10 Biggest Loans 26.7%
Stake of 10 Biggest Guarantors 42.8%
Stake of Bullet Loans 46.8%
Stake of Fixed Interest Loans 33.5%
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MATURITY STRUCTURE OF COVER POOL AND ISSUES
Maturity of Assets in the Cover Pool in mn EUR In %
Maturity up to 12 Months 79 2.8%
Maturity 12 - 60 Months 450 16.2%
thereof Maturity 12 - 36 Months 332 11.9%
thereof Maturity 36 - 60 Months 117 4.2%
Maturity 60 - 120 Months 387 13.9%
Maturity longer than 120 Months 1,869 67.1%
Total 2,785 100.0%
Maturity of Issued Covered Bonds in mn EUR In %
Maturity up to 12 Months 145 14.4%
Maturity 12 - 60 Months 662 65.7%
thereof Maturity 12 - 36 Months 534 53.1%
thereof Maturity 36 - 60 Months 127 12.6%
Maturity 60 - 120 Months 11 1.1%
Maturity longer than 120 Months 190 18.9%
Total 1,007 100.0%
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REGIONAL BREAKDOWN OF ASSETS* IN AUSTRIA
* Considering Guarantors
Regional Breakdown Austria in mn EUR In %
Vienna 328 11.8%
Lower Austria 624 22.4%
Upper Austria 456 16.4%
Salzburg 144 5.2%
Tyrol 208 7.5%
Styria 231 8.3%
Carinthia 538 19.3%
Burgenland 62 2.2%
Vorarlberg 120 4.3%
Republic of Austria 73 2.6%
Total Austria 2,785 100.0%
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VOLUME BREAKDOWN BY SIZE OF ASSETS
Volume Breakdown by Size of Assets in mn EUR Number
below 300.000 226 1,870
thereof under 100.000 42 869
thereof 100.000 - 300.000 184 1,001
300.000 - 5.000.000 1,065 1,223
thereof 300.000 - 500.000 186 481
thereof 500.000 - 1.000.000 296 428
thereof 1.000.000 - 5.000.000 583 314
above 5.000.000 1,494 71
Total 2,785 3,164
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ASSETS VOLUME BREAKDOWN BY TYPE OF DEBTOR /GUARANTOR
Assets: Type of Debtor / Guarantor in mn EUR Number
State 35 3
Federal States 170 449
Municipalities 1,116 2,335
Guaranteed by State 38 19
Guaranteed by Federal States 984 54
Guaranteed by Municipalities 375 222
Other 68 82
Total 2,785 3,164
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AGENDA
UNICREDIT GROUP / BANK AUSTRIA: OVERVIEW
PUBLIC COVERED BOND OF UNICREDIT BANK AUSTRIA
AUSTRIAN LEGAL FRAMEWORK PFANDBRIEFE
AUSTRIAN LEGAL FRAMEWORKMORTGAGE AND PUBLIC SECTOR PFANDBRIEFE
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Austrian Covered Bonds
Pfandbriefe
Pfandbriefgesetz(Pfandbrief Law 1938)
Hypothekenbankgesetz(Mortgage Banking Act 1899)
FundierteSchuldverschreibungen
Law from 1905
UniCredit Bank Austria
Remark:Austrian ‘Mortgage Pfandbriefe‘ also follow the same legal regulation but are not topic of this presentation.
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Criteria of Pfandbrief law /Hypothekenbankgesetz
Austria Germany
Pfandbrief law in place YES YES
Mortgage and public sectorcollateral assets in seperate pools
YES YES
Cover register YES YES
Collateral assets limited to Europe YES X
Legally required minimum over -collateralization
YES YES
Cover Pool monitoring (Trustee) YES YES
Special proceedings in case of
insolvencyYES YES
Pfandbriefe remain outstanding incase of issuer‘s bankruptcy
YES YES
NPV matching YES* YES
* if included in the Articles of Association of the respective credit institution
Austrian „Hypothekenbankgesetz“was intially based on the Germanlegislation
Important changes to the German"Pfandbrief" - legislation werefollowed by the Austrian"Hypothekenbankgesetz", whichcontinues to reflect the principalfeatures of the German"Pfandbriefgesetz”.
Main differences in the currentversion are:
• German law also allowscollateral assets from non-European countries
• German law includescompulsory NPV-matching,whereas in Austrian lawNPV-matching is voluntary(Bank needs to setup a self-commitment in its articles ofassociation – which is thecase for Bank Austria)
MORTGAGE AND PUBLIC SECTOR PFANDBRIEF
YOUR CONTACTS
CFO FinanceUniCredit Bank Austria AG
Franz StegmüllerHead of Strategic Funding
Tel. +43 (0) 50505 82639Fax + 43 (0)1 3191356 82639franz.stegmueller@unicreditgroup.at
Günther StromengerHead of Corporate RelationsTel. +43 (0) 50505 87230Fax + 43 (0) 50505 8987230guenther.stromenger@unicreditgroup.at
Impressum
UniCredit Bank Austria AGCFO FinanceA-1010 Wien, Schottengasse 6-8
Corporate & Investment BankingUniCredit Bank Austria AG
Gabriele WiebogenHead of Long Term FundingTel. +43 (0) 50505 82337Fax + 43 (0) 50505 82339gabriele.wiebogen@unicreditgroup.at
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DISCLAIMER
This publication is presented to you by:UniCredit Bank Austria AGSchottengasse 6-8A-1010 Wien
The information in this publication is based on carefully selected sources believed to be reliable. However we do not make any representation as to its accuracy or completeness. Any opinions herein reflect our judgement at the date hereofand are subject to change without notice. Any investments presented in this report may be unsuitable for the investor depending on his or her specific investment objectives and financial position. Any reports provided herein are provided forgeneral information purposes only and cannot substitute the obtaining of independent financial advice. Private investors should obtain the advice of their banker/broker about any investments concerned prior to making them. Nothing in thispublication is intended to create contractual obligations. Corporate & Investment Banking of UniCredit Group consists of UniCredit Bank AG, Munich, UniCredit Bank Austria AG, Vienna, UniCredit CAIB Securities UK Ltd. London, UniCreditS.p.A., Rome and other members of the UniCredit Group. UniCredit Bank AG is regulated by the German Financial Supervisory Authority (BaFin), UniCredit Bank Austria AG is regulated by the Austrian Financial Market Authority (FMA),UniCredit CAIB AG is regulated by the Austrian Financial Market Authority (FMA) and UniCredit S.p.A. is regulated by both the Banca d'Italia and the Commissione Nazionale per le Società e la Borsa (CONSOB).
Note to UK Residents:In the United Kingdom, this publication is being communicated on a confidential basis only to clients of Corporate & Investment Banking of UniCredit Goup (acting through UniCredit Bank AG, London Branch and/or UniCredit CAIB SecuritiesUK Ltd. who (i) have professional experience in matters relating to investments being investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“FPO”); and/or (ii)are falling within Article 49(2) (a) – (d) (“high net worth companies, unincorporated associations etc.”) of the FPO (or, to the extent that this publication relates to an unregulated collective scheme, to professional investors as defined in Article14(5) of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 and/or (iii) to whom it may be lawful to communicate it, other than private investors (all such persons beingreferred to as “Relevant Persons”). This publication is only directed at Relevant Persons and any investment or investment activity to which this publication relates is only available to Relevant Persons or will be engaged in only with RelevantPersons. Solicitations resulting from this publication will only be responded to if the person concerned is a Relevant Person. Other persons should not rely or act upon this publication or any of its contents.The information provided herein (including any report set out herein) does not constitute a solicitation to buy or an offer to sell any securities. The information in this publication is based on carefully selected sources believed to be reliable butwe do not make any representation as to its accuracy or completeness. Any opinions herein reflect our judgement at the date hereof and are subject to change without notice.We and/or any other entity of Corporate & Investment Banking of UniCredit Group may from time to time with respect to securities mentioned in this publication (i) take a long or short position and buy or sell such securities; (ii) act asinvestment bankers and/or commercial bankers for issuers of such securities; (iii) be represented on the board of any issuers of such securities; (iv) engage in “market making” of such securities; (v) have a consulting relationship with anyissuer. Any investments discussed or recommended in any report provided herein may be unsuitable for investors depending on their specific investment objectives and financial position. Any information provided herein is provided forgeneral information purposes only and cannot substitute the obtaining of independent financial advice.UniCredit Bank AG, London Branch is regulated by the Financial Services Authority for the conduct of business in the UK as well as by BaFIN, Germany. UniCredit CAIB Securities UK Ltd., London, a subsidiary of UniCredit Bank Austria AG,is authorised and regulated by the Financial Services Authority.Notwithstanding the above, if this publication relates to securities subject to the Prospectus Directive (2005) it is sent to you on the basis that you are a Qualified Investor for the purposes of the directive or any relevant implementing legislationof a European Economic Area (“EEA”) Member State which has implemented the Prospectus Directive and it must not be given to any person who is not a Qualified Investor. By being in receipt of this publication you undertake that you willonly offer or sell the securities described in this publication in circumstances which do not require the production of a prospectus under Article 3 of the Prospectus Directive or any relevant implementing legislation of an EEA Member Statewhich has implemented the Prospectus Directive.
Note to US Residents:The information provided herein or contained in any report provided herein is intended solely for institutional clients of Corporate & Investment Banking of UniCredit Group acting through UniCredit Bank AG, New York Branch and UniCreditCapital Markets, Inc. (together “UniCredit”) in the United States, and may not be used or relied upon by any other person for any purpose. It does not constitute a solicitation to buy or an offer to sell any securities under the Securities Act of1933, as amended, or under any other US federal or state securities laws, rules or regulations. Investments in securities discussed herein may be unsuitable for investors, depending on their specific investment objectives, risk tolerance andfinancial position.In jurisdictions where UniCredit is not registered or licensed to trade in securities, commodities or other financial products, any transaction may be effected only in accordance with applicable laws and legislation, which may vary fromjurisdiction to jurisdiction and may require that a transaction be made in accordance with applicable exemptions from registration or licensing requirements.All information contained herein is based on carefully selected sources believed to be reliable, but UniCredit makes no representations as to its accuracy or completeness. Any opinions contained herein reflect UniCredit's judgement as of theoriginal date of publication, without regard to the date on which you may receive such information, and are subject to change without notice.UniCredit may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in any report provided herein. Those reports reflect the different assumptions, views and analytical methods ofthe analysts who prepared them. Past performance should not be taken as an indication or guarantee of further performance, and no representation or warranty, express or implied, is made regarding future performance.UniCredit and/or any other entity of Corporate & Investment Banking of UniCredit Group may from time to time, with respect to any securities discussed herein: (i) take a long or short position and buy or sell such securities; (ii) act asinvestment and/or commercial bankers for issuers of such securities; (iii) be represented on the board of such issuers; (iv) engage in “market-making” of such securities; and (v) act as a paid consultant or adviser to any issuer.The information contained in any report provided herein may include forward-looking statements within the meaning of US federal securities laws that are subject to risks and uncertainties. Factors that could cause a company's actual resultsand financial condition to differ from its expectations include, without limitation: Political uncertainty, changes in economic conditions that adversely affect the level of demand for the company‘s products or services, changes in foreignexchange markets, changes in international and domestic financial markets, competitive environments and other factors relating to the foregoing. All forward-looking statements contained in this report are qualified in their entirety by thiscautionary statement.
UniCredit Bank Austria AG, Viennaas of 12 August 2010