oberbank ag presentation · 1990 1995 2000 2005 2010 2015 Österreich wien residential loans...

49
Oberbank. Not like any other bank. Oberbank AG – Presentation Dated: 18 th May 2018

Upload: others

Post on 06-Jul-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

Oberbank. Not like anyother bank.

Oberbank AG – PresentationDated: 18th May 2018

Page 2: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

2

CONTENTS

Facts & Figures on Oberbank

Covered Pool

PresentationReal Estate Market

in Austria

Expansion Funding

Dr. Franz GasselsbergerCEO

Robert MusnerDeputy Head of Global Financial Markets

2 5

63

1 4

Pages: 3 - 14

Pages : 15 - 23

Pages : 24 - 28

Pages : 35 - 42

Pages : 43 - 45

Pages : 29 - 34

Page 3: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

3

FACTSHEET OBERBANK

Source: Oberbank AG | Annual Report of regarding banksDate: 31/12/2017

Average number ofstaff(FTEs)

2,050

Total assets

20.8 bn.

Loans and advances to customers

14.8 bn.

Customer fundsunder management

29.3 bn.

7th largest bank in AustriaFacts about Oberbank

Bank Total assets

1 Erste Group Bank 220.7 bn.

2 Raiffeisen Bank International AG 135.2 bn.

3 UniCredit Bank Austria AG 102.1 bn.

4 BAWAG P.S.K. 46.1 bn.

5 Raiffeisenlandesbank OÖ 33.7 bn.

6 Raiffeisenlandesbank NÖ-Wien AG 24.3 bn.

7 Oberbank 20.8 bn.

8 HYPO NOE Gruppe 14.4 bn.

9 Raiffeisenlandesbank Steiermark 11.5 bn.

Page 4: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

4

… an independent regional bank in the heart of Europe …

...

Page 5: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

5

IN AN ECONOMICALLY STRONG REGION

Source: Oberbank AG | Status: March 2018

SAXONY

HESSE Erfurt

6

2 Prague2 CZECH REPUBLIC

2004Darmstadt3

2BAVARIA1990

2SLOVAKIA

2009296 26BADEN-

WÜRTTEMBERG2 5 438Munich Linz 4 Bratislava

10 3 3

2AUSTRIA

1869Budapest

2

HUNGARY2007

THÜRINGEN Legend:

Branch

x BranchesX

Page 6: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

6

INDEPENDENCE DEVELOPED OVER YEARS

Source: Oberbank AG | Data: 31 March 2018

1869Founded in Linz

1990Market entry in Bavaria

2004Market entry in Czech Republic

2009Market entry in Slovakia

1986Initial public offering on the Vienna Stock Exchange

150 Years of Oberbank

1952Creditanstaltsells 1/3 of its shares

1988First branchin Vienna

2002100 Branches

2013150 Branches

2007Market entryin Hungary

1929Creditanstalt becomes majority shareholder

1985First branch in Lower Austria

1991Foundation of Drei-Banken-EDV

Page 7: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

7

SHAREHOLDER STRUCTURE ENSURES INDEPENDENCE

Source: Oberbank AG | Data: 31 December 2017 | Shareholders highlighted in red have a syndicate agreement

16.15%

14.21%

4.50%

1.76 %

3.61 %23.76 %

36.01%

Bank für Tirol und Vorarlberg Aktiengesellschaft

Free float

BKS Bank AGTotal capital31/12/2017

Wüstenrot Wohnungswirtschaft reg. Gen.m.b.H.

Generali 3 Banken Holding AG

Employees

CABO Beteiligungsgesellschaft m. b. H.

Page 8: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

8

MEMBER OF THE 3 BANKEN GROUP

Source: Oberbank AG | 31/12/2017 | Shares by voting rights

Holdings of the 3 Banken Group

3 Banken IT GmbH 3 Banken-Generali

Investment-Gesellschaftm.b.H.

ALPENLÄNDISCHE GARANTIE-GESELLSCHAFT m.b.H.

Facts 3 Banken Gruppe

in million EUR Oberbank BKS BTV 3 Banken

Total assets 20,831 7,580 10,463 38,874

Loans & advances to customers 14,760 5,450 7,336 27,546

Primary funds 13,395 5,669 7,606 26,670

Customer funds under management 29,333 14,151 13,905 57,389

Profit for the year before tax 238.9 77.2 91.2 407.3

Ø number of staff 2,050 928 1,401 4,379

Number of branches 161 63 36 260

Page 9: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

9

OBERBANK'S INVESTMENT PORTFOLIO

Source: Oberbank AG | Data: as at 31 December 2017

Credit institutionsInsurance companies

Industry

14.38 %

19.29 %

2.60 %

8.14 %

4.12 %

3.73 %

Page 10: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

10

… supported by a solid business model & a consistently pursued strategy…

Page 11: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

11

SOLID BUSINESS MODEL & STRATEGY

Source: Oberbank AG

Au

ton

om

y &

ind

epen

den

ce

Hig

h a

dvi

sory

qu

alit

y

Org

anic

gro

wth

Co

nce

ntr

atio

n o

n r

isk

man

agem

ent

Secu

rin

g liq

uid

ity

Sust

ain

able

HR

dev

elo

pm

ent

Lean

pro

cess

es

Stable values foundation

Page 12: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

12

STRATEGIC FIELDS OF ACTION UNTIL 2020

Source: Oberbank AG

Sales culture -greater efficacy in

sales

Reducing dependency on large customers

Mastering digital challenges

Focus on commission

business

Exploiting regional potentials

Retaining/improving cost

efficiencyEarn

ings C

osts

Expansion & strengthening of

retail lending business

Improving early recognition of

risks

Integration of Oberbank‘s non-Austrian markets

Page 13: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

13

WE OFFER UNIVERSAL BANKING

Source: Oberbank AG 31/3/2018

SME & Corporate Customers Retail customers

50,700 customers: 283,800 customers:

Personal BankingCorporate and Business Banking

Export financeStructured finance,

private equity, mezzanine capital

Housing loans & subsidy schemes, consumer loans,

car leasing

Private retirement provisioning

Bu

sin

ess

Fin

ance

Documentary business and guarantees

Interest & currency management, inv.

financingBusiness investments Private Banking & Asset Management

Customer funds under management : 29.3 bn. €

Assets under Management: 8.7 bn. €

Ris

k M

gmt.

Payment services & cash management, leasing

Paym

ent

& c

ash

Portfolio

Page 14: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

14

CORE AREAS OF COMPETENCE

Source: 1Exportfonds; 2OeKB & own calculation | Date: 31/12/2017

• Equipment Finance

• Investment Finance

• Structured Finance

• Leasing

Export loans for large corporates (KRR)11.3% 2 Market share (AT)

Export loans for SMEs (Exportfonds)11.2%2 Market share (AT)• Payment Services

• Export Finance

• Trade Finance

ERP subsidized loansAbout 20%1 of all ERP subsidized loans

in AustriaFinancing

International business

Page 15: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

15

… delivers steady, solid results with high lending volume

growth …

Page 16: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

16

OBERBANK AT A GLANCE (31/12/2017)

• Net profit before taxEUR 238.9 million / + 9.0% 238.9 million

219.1 million

2017

2016

• Net profit after taxEUR 200.5 million / + 10.6% 200.5 million

181.3 million

2017

2016

• Lending volumeEUR 14.8 billion/ + 7.1% 14.8 billion

13.8 billion

2017

2016

• Primary depositsEUR 13.4 billion/ + 3.0% 13.4 billion

13.0 billion

2017

2016

• Loan loss provisionsEUR 28.4 million / + 13.5% 28.4 million

25.0 million

2017

2016

• Tier 1 capital ratio 17.03%

• Total capital ratio 19.64% 19.64%

17.03%

T.c. ratio

CET1 ratio

Source: Annual Report 2017 | Data: as at 31 December 2017

Page 17: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

17

POSITIVE LENDING GROWTH IN CORPORATES & RETAIL

Lending volume (per 31/12) Regional distribution (31/12/2017)

Upper Austria, Salzburg

6,860

Vienna 2,051

LowerAustria1,290

Germany 2,446

Czech Republic

1,208

Hungary562

Slovakia344

2,218 2,442 2,695 2,875 3,049

9,496 9,835 10,14510,903

11,711

11,71312,276

12,84013,778

14,760

2013 2014 2015 2016 2017

Personal loans Corporate loans

Source: Oberbank AG | Figures in €m

+7 %

Page 18: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

18

CAPITAL REQUIREMENTS CLEARLY MET

Requirementfrom 2019

10.5%

8.5%

IFRS 9 Change will raiseequity by

around 4.0 % to 6.5 %

7.0%

Source: Annual Report 2017 | As at: 31/12/2017

16.50% 17.03%19.64%

CET1ratio

Tier 1 capitalratio

Total capitalratio

Page 19: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

19

LONG-TERM EARNINGS GROWTH – 8TH RECORD RESULT IN A ROW

Sources: Annual Reports 2009 to 2017 | Figures in mn. €

92

115126

136142

158

192

219

239

2009 2010 2011 2012 2013 2014 2015 2016 2017

Sustainable growth

• Panic-proof business model

• Long-term growth plan

• Continous process optimization

• Consequent expansion

No unexpected events!

• Focus on core business

• Only businesses we know

• Regionally located customers

Page 20: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

20

NET INTEREST INCOME & SERVICE BUSINESS DEVELOPING WELL

Net interest income (per 31/12) Regional distribution (31/12/2017)

141

115119

133

41 46

2626

4750

1718

2013 2014 2015 2016 2017

131 Other

+ 8.2%

Payment

services

+ 6.0%

Loans

+ 1.2%

Securities

+ 12.6%

Source: Oberbank AG | Figures as at 31 Dec. in €m

336

373

381

360

388

2013 2014 2015 2016 2017

Page 21: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

21

STABLE COST STRUCTURE

52.1%50.1% 50.5% 50.8% 49.9%

231.0236.9

243.3

251.8

266.2

45%

50%

55%

60%

65%

70%

200

230

260

290

2013 2014 2015 2016 2017

Ad

min

istr

ativ

e ex

pen

ses

CIR

Source: Oberbank AG | Administrative expenses in €m |CIR (cost/income – ratio) in %

Page 22: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

22

LOAN LOSS PROVISIONS DEVELOPING FAVOURABLY

70.6

78.0

47.1

25.028.4

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

2013 2014 2015 2016 2017

Indicator 2016 2017 Q1/2018Risk/earning ratio 6.96% 7.33% -2.86%WB ratio 0.16% 0.19% -0.07%NPL ratio gross (BASAG)(NPL gross/sum loans)

3.35% 2.59% 2.55%

NPL Cover Ratio without PWB (BASAG)(spec. val. allowance + collateral / NPL gross)

92.78% 84.83% 89.97%

Figures in €mSource: Annual Reports 2013 to 2017 | Data as per 31/12

Page 23: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

23

SUSTAINABLE DEVELOPMENT OF PROFIT AND SHARES

Source: Bloomberg, own calculations of Oberbank (net profit on the basis of the years 2003 to 2017) | 1Data: 14/05/2018The figures given refer to the past. These cannot be used to derive future trends.

Oberbank ordinary share

Currently over EUR 3 billion market value1

Top 15 on the Vienna Stock

Exchange

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

0

10

20

30

40

50

60

70

80

90

100 Jahresüberschuss vor Steuern, in Mio. EUR

Kurs Stammaktie 86.40

Profit before taxes, in mn. €

Market price ordinary share

Page 24: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

24

… is pursuing a sustainable path of expansion …

Page 25: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

25

SUCCESSFUL EXPANSION

Source: Oberbank AG | Data: 31 December 2017 in €m

85 8998

110

143

156 159 161

20 2249

79

115

192

219

239

0

50

100

150

200

250

300

0

30

60

90

120

150

180

2010 2011 2012 2013 2014 2015 2016 2017

Branches Profit before tax

Page 26: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

26

FURTHER EXPANSION 2018, UP TO 10 BRANCHES TO BE OPENED

Source: Oberbank AG | Data: as at 31 December 2017

Main challenge: continued expansion retaining attractive cost structure

3 pillars of growth:

• Development of existing branches• Expansion into regions with potential• Acquisition of new regions (e.g. Saxony,

Baden-Württemberg)

... growth pressure

Higher regulatory capital...

... keeping RoE at 8% to 10% ...

... leads to ...

Up to 10 new branches to open in 2018 • 1 Vienna, 1 Hungary, 6 to 8 Germany

DE6 to 8 branches

HU1 Branch

Page 27: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

27

MULTICHANNEL -- NO ‘EITHER/OR’

Source: Oberbank AG

Branch Website eBanking App

www.oberbank.com

Page 28: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

28

OBERBANK AT A GLANCE (31 MARCH 2018)

Source: Interim Report to Shareholders Q1-2018 | Data: 31 March 2018

• Profit for the year after tax53,7 Mio. EUR / + 9,1%

• Customer deposits15,1 Mrd. EUR / + 6,2%

• Primary deposits13,3 Mrd. EUR / + 3,1%

• Charges for losses on loans and advances- 2,3 Mio. EUR

• Tier 1 capital ratio 16,60%

• Total capital ratio 19,12%

• Profit for the period before tax64,0 Mio. EUR / + 3,8%

15,1 bn.

14,2 bn.

31 March 2018

31 March 2017

19,12%

16,60%

T.c. ratio

CET1 ratio

-2,3 mn.

-0,8 mn.

Q1 2018

Q1 2017

64,0 mn.

61,6 mn.

Q1 2018

Q1 2017

53,7 mn.

49,2 mn.

Q1 2018

Q1 2017

13,3 bn.

12,8 bn.

31 March 2018

31 March 2017

Page 29: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

29

Real estate market

Page 30: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

30

ENVIRONMENT IS CREATING DEMAND FOR REAL ESTATE

Source: OeNB | Status: February 2018

Labour market again on upswing Inhabitants (year-on-year change in %)Unemployment rate (EU harmonised) in %

0

2

4

6

8

10

12

14

Jän

. 98

Jän

. 99

Jän

. 00

Jän

. 01

Jän

. 02

Jän

. 03

Jän

. 04

Jän

. 05

Jän

. 06

Jän

. 07

Jän

. 08

Jän

. 09

Jän

. 10

Jän

. 11

Jän

. 12

Jän

. 13

Jän

. 14

Jän

. 15

Jän

. 16

Jän

. 17

Jän

. 18

Österreich EA19

0,0

1,0

2,0

3,0

2003 2005 2007 2009 2011 2013 2015 2017

Bevölkerung Österreich Bevölkerung WienAustria Population Austria Population ViennaEA19

Page 31: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

31

DEMAND IS DRIVING UP PRICES BUT NO OVERHEATING

Source: OeNB | Status: February 2018

Prices: Austria total (2003Q1 = 100) Loan-bearing capacity (ø since 1989 = 100)

80

120

160

200

240

2003 2005 2007 2009 2011 2013 2015 2017

Österreich Wien Österreich ohne Wien

40

60

80

100

120

140

160

180

1990 1995 2000 2005 2010 2015

Österreich Wien

Residential loans (year-on-year change in %)Increase in real estate prices 2007 to 2017:

0

5

10

2007 2009 2011 2013 2015 2017An private HaushalteAn private Nichtbanken

Vienna: 6.5% p.a. averageRest of Austria: 4.8% p.a. Results in an overvaluation of 19.7% in Vienna and 8.5% for all of Austria, recently on a decline

Austria Vienna Austria without ViennaAustria Vienna

HouseholdsNon-financial Institutions

Page 32: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

32

MODERATE INDEBTEDNESS AND LOW OWNERSHIP SHARE

Indebtedness of private households in Q4 2016Source: Statistik Austria, cited by OeNB123 119

108

87 8673 67 64 60 59 59 57 54 53 52 52

42 42 38 37 36 31 28 24 23 23 21 17

in % of GDP

Percentage ownership in 2016

Source: Eurostat, Statistik Austria, micro census 2016 cited by OeNB

96 90 90 90 86 83 82 81 81 81 78 78 75 75 74 74 73 72 72 71 69 69 66 65 65 63 62 55 52

RO LT HR SK HU PL

BG EE MT LV CZ ES PT SI EL LU CY IT FI BE

EU2

8

NL

EA1

8 SE FR UK

DK

AT

DE IE

in % of all householdsOwnership is low in comparison –especially in Vienna

Page 33: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

33

BUILDING ACTIVITY ON THE RISE

Source: Statistik Austria, cited by OeNB

Investments in housing construction, real

Increasing building activity is keeping prices from rising

20177 housing units /1000 inhabitants (Germany only 3.5)Large number of building permits

-6

-4

-2

0

2

4

2003 2005 2007 2009 2011 2013 2015 2017

(Year-on-year change in %)

Building permits

-40

-20

0

20

40

60

2006 2008 2010 2012 2014 2016

Anzahl der Wohnungen Bruttogeschoßflächen

(Year-on-year change in %)

Number of flats Gross floor area

Page 34: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

34

SUMMARY – REAL ESTATE MARKET

Building activity on

the rise

Stable real estate

market

Low unemployment

Moderate

indebtedness

Attractive financing

conditions

Page 35: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

35

Covered Pool

Page 36: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

36

OBERBANK MORTGAGE-BACKED COVERED POOL

Source: Oberbank AG

Granularcovered Pool

(Single loan max. EUR 15 million)

No loans at risk included/ rating

floor

AAA RatingS&P

Conservativelending / risk management

Strong economic regions

Focus on residential real

estate

Page 37: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

37

HIGH OVERCOLLATERALISATION – FOCUS ON HOUSING SECTOR

Source: Oberbank AG | Data: 31/3/2018 in €m

Pool Portfolio

892

199

Cover Issues

Residential86.7%

Commercial13.3%

Surplus cover EUR 693.4 million = 348%

Page 38: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

38

CONSERVATIVE LENDING POLICY

Source: Oberbank AG | Data: 31/12/2017

Lending mainly

through own

distribution channels

Max. term 30 years

Repayment in lump sum instalments

87%

13%

Branches

Brokers

Max. 5 years without repayments

– at the least interest is paid

Lending

No foreign currency loans

Limits of creditworthiness

Interest rate modelling

Page 39: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

39

LENDING LIMITS CLEARLY FULFILLED

Source: Oberbank AG | Data: 31/12/2017

Conservative / strict rules

Limits of creditworthiness

ExplanationUpper limit(internal)

Upper limit(OeNB)

LTV (loan-to-value)

Ratio of loan to property value 80% 140%

DTI (debt-to-income)

Ratio of total amounts owed to bank to financial capacity (net annual income)

6 X 10 X

DSTI (debt-service-to-income)

Ratio of loan servicing (interest and repayments) to financial capacity

30% 70%

Actual lending

Average figures for 2017

Median

31/12/2017 Q3 2017 Q2 2017 Q1 2017

LTV 57.43% 55.94% 72.77% 58.40%

DTI 5.42 X 5.30 X 5.90 X 5.29 X

DSTI 22.40% 25.53% 27.79% 22.92%

Page 40: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

40

COMMERCIAL PROPERTY IS NOT OUR CORE BUSINESS

Source: Oberbank AG | Data: 31/12/2017

Focus Operational used real

estate financing

Financing for developers of properties built to sell:

Max. 5 year horizon Positive risk assessment Corresponding margins Cross selling potential

Not the focus

Financing of rental properties > EUR 3 million

Building societies

Page 41: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

41

COVER - COMPOSITION

Source: Oberbank AG | Data: 31/3/2018

Granularity – 71% < €300,000 Regional distribution

28%252

million

43%386

million

8%75 million

7%60 million.

11%97 million

2%22 million

< 100.000 100.000 - 300.000

300.000 - 500.000 500.000 - 1.000.000

1.000.000 - 5.000.000 >= 5.000.000

41%

20%

18%

11%

4%

6%

Upper Austria

Vienna

Lower Austria

Salzburg

Germany

others

Page 42: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

42

TREND TOWARD FIXED INTEREST RATES FOR HOUSING LOANS

Source: Oberbank AG | Data: 31/3/2018

Interest terms; Status as at 31/12/2017 New loans – Interest terms in Austria 2017

variable62%

fixed38%

variable32%

fixed68%

in % of new loansin % of the existing portfolio

Page 43: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

43

Funding

Page 44: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

44

LIQUIDITY PLANNING

Source: Oberbank AG

TLTRO repayments going forward

High over-collateralization

(assets - liabilities - mismatch)

Covering long-term liquidity

Subdued issuance activity in senior

bonds (low-interest

environment)

Good environment

for debut

ECB purchase programme

Page 45: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

45

SOURCES OF REFINANCING

Source: Oberbank AG | As at 31/12/2017

Additional CET1 capital of

EUR 2.27 billion

67.2%

13.1%

8.8%

6.2%

4.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TLTRO

Interbank

Subsidized loans (ÖKB, LfA, KfW, EIB)

Securitized liabilities, Tier 2 cap. + subord. Debt

Savings deposits (savings, sight & term deposits)

Refin

ancin

g loan

s

LDR

(loan

/dep

osit ratio

)

Strengthen share of long-term financing | supplement to senior bonds

Page 46: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

46

Summary

Page 47: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

47

SUMMARY

Strong company Clear business model Successful business

Sustainable expansion AAA-rated cover pool Granular cover pool

Page 48: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

48

CONTACTS

Source: Oberbank AG

Thomas Katzlinger

Trading / Capital Markets

+43 / 732 / 7802 - 32637

+43 / 664 / 805565 534

[email protected]

Markus Pretzl

Investor Relations

+43 / 732 / 7802 - 37368

+43 / 664 / 805565 312

[email protected]

Robert Musner, MBA

Deputy Head of Global Financial Markets

+43 / 732 / 7802 - 32640

+43 / 664 / 805565 224

[email protected]

Helmut Edlbauer, MBA

Head ofGlobal Financial Markets

+43 / 732 / 7802 - 32630

+43 / 664 / 805565 078

[email protected]

Page 49: Oberbank AG Presentation · 1990 1995 2000 2005 2010 2015 Österreich Wien Residential loans (year-on-year change in %) Increase in real estate prices 2007 to 2017: 0 5 10 2007 2009

49

DISCLAIMER

This is a marketing publication. These documents serve only to provide updated information and are based

on the knowledge of the persons entrusted with the creation of this document at the time of the printing

deadline. These documents do not constitute an offer or a solicitation to buy or sell any of the investments or

(bank) products mentioned herein. None of the statements in this document may be construed as a general

recommendation. Although we assess the sources used to be reliable, we do not assume any liability for the

completeness or correctness of the information provided in this document. In particular, we do not assume

any liability for the correctness of the figures given.

The figures given refer to the past. These cannot be used to derive future trends.

Oberbank AG, legal form: Aktiengesellschaft, registered office in: Linz,

Companies Register FN 79063 w, District Court Linz, DVR: 0019020