0623 bank austria - investor presentation en · 4 unicredit / structure re-organization completed...

Bank Austria

London, 24 – 25 June 2014

Credit Update

2

Agenda

Overview Bank Austria

Profit & Loss

Liquidity & Funding

Funding Strategy & Position

Balance Sheet & Capital Ratios

Business Model & Strategy

Transactions

Annex

Cover Pool

3

Bank Austria at a glance

Bank Austria continues being…

the leading corporate bank in Austria

one of the largest retail banks in Austria

parent bank of the largest banking networks in CEE

embedded in UniCredit, a large European banking group with access to

group know-how and the major financial centers worldwide

benefitting from stable liquidity with a perfect balance between customer

loans and primary funds

and a sound capital base: Common Equity Tier 1 (CET1) ratio of 11.0%

and Total Capital ratio of 13.5% (both as of 31 March 2014 and according to Basel 3

phase-in)

4

UniCredit / Structure Re-organization completed in 2013Countries more accountable / simplified service model to the customers

New organizational structure (effective as from January 2013) is fully implemented:

From a divisional breakdown to a regional view in Italy, Germany, Austria and Poland

CIB remains a Global division to further strengthen its focus on multinational and

large corporate customers, with clear investment banking needs regardless of

turnover

CEE, Asset Management and GBS (Global Banking Services) not impacted by the

organizational changes

In Italy, the adoption of the new model allowed to cut one organizational layer and to create

7 fully-accountable regional banking hubs to foster the client relationship and proximity

This project created a leaner organization, streamlined decision-making

processes, improved operational efficiency in Bank Austria for its regional

responsibility in Austria & CEE

5

Business Model and Market Position in Bank Austria‘sHome Market

Bank Austria confirms its position as one of the strongest banks in Austria:

CIB = Corporate & Investment Banking

CIB

Leading corporate bank in

the country (client shares of

up to 84% in large

companies)

Focus on

- Multinational corporates

- International and

institutional Real Estate

customers requiring

investment banking

solutions and capital

markets-related products

- Financial Institutions

Clients have access to the

largest banking network in

CEE as well as to UniCredit

branches in major financial

centers worldwide

Commercial Banking

The division covers

- Retail customers

- Corporate customers

- Customer Direct Service

- Real Estate

- Public Sector (excluding

Republic of Austria)

Broad coverage through a

network of approx. 260

branches, offering its

customers a complete

range of high-quality

products

13% market share in loans

to individual customers

Strong market position in

all corporate segments

Private Banking

27% of Austrian High Net

Worth Individuals are

customers of BA

Clients benefit from the

combination of local

understanding and

international capabilities

Tailored financial services

to High Net Worth

Individuals and foundations

Successful client

approach through BA‘s PB

Division and Schoellerbank

6

Bank Austria‘s Market Shares1) in the Domestic Customer Business(as of March 2014)

1) UniCredit Bank Austria AG2) Pioneer Investments Austria + Bank Austria real estate funds Source: Monthly Report Austrian National Bank (OeNB); VÖIG

Funds2)

Loans total

Retail Loans

Corporate Loans

Public Sector Loans

Deposits total

Retail Deposits

Corporate Deposits

Public Sector Deposits

15.4%

18.4%

20.8%

32.0%

14.0%

10.5%

14.4%

12.5%

13.3%

Very efficient network structure to cover the important size of customer sharewith only 6% of all bank branches in Austria

vs. 4Q13 vs. 4Q13

Austrian economic growth YoY in % Austrian inflation rate YoY in %

Economic Conditions in Austria

Sources: Statistik Austria, Bank Austria Economics & Market Analysis Austria

forecast

7

Employment and unemployment rate

2,32,2

3,2

0,5

3,3

2,4

1,7

1,92,0

1,9

1,5

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3,7 3,7

1,4

-3,8

1,82,0 2,1

0,4

0,9

2,8

2,4

-4,0

-3,5

-3,0

-2,5

-2,0

-1,5

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

forecast

After a weak 2013 with growth nearly stagnating, GDPhas started growing already in the second half of 2013and growth will accelerate in 2014

We expect 2.0% growth in 2014 and also for 2015,growth should stay at around the same level

Inflation will slightly fall in 2014 and stay below 2%also in 2015, while the conditions on the labor marketwill improve in the second half of 2014, so for theaverage, the unemployment rate in 2014 will be higherthan in 2013, but will fall in 2015.The unemploymentrate will still be the lowest in the Euro area 0

1

2

3

4

5

6

7

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

3000

3100

3200

3300

3400

3500

3600

3700Employment excl. persons drawing maternity benefits, military service andtraining (1000s, SA) - RSUnemployment rate (%, SA) - LS

8

Differentiation expected to persist(real GDP %)

GDP Growth in CEE vs. Eurozone(real GDP %)

SOURCE: UniCredit Research CEE Quarterly December 2013 and UniCredit Chartbook February 2014, UniCredit CEE Strategic Analysis

forecast

-8

-6

-4

-2

0

2

4

6

8

10

20152013200920052001

EMU

CEE

CEE to EMU growth differential

CEE economic growth expected to pick up in 2015, although cross-country differentiation remains key

3.02.9

SK

3.6

CZ

2.5

RO TR

2.8

0.0

2.7

2.0

RS

2.5

1.3

BH

2.5

1.5

BG

2.1

1.5

HU

2.0

2.7

RU

1.2

0.5

SI

1.1

-0.3

UA

1.0

-6.0

HR

1.0

-1.0

2014 2015

9

Net Profit (2)

(€ mn)

Countries ofpresence (3)

Total Assets (1)

(€ bn)

Number ofBranches

Data as of1H13

CEE, % share inGroup revenues

UniCredit confirms its leadership in CEE

116 1,299 3,92719

6

19

16

4

11

9

15

475

1,007

175

-28

315

444

511

1,389

1,294

799

2,524

3,042

1,865

3,615

57

87

31

15

11

28

83

82

73

56

39

34

RBI

Erste

UniCredit 136

OTP

IntesaSanPaolo

KBC

SocGen (6)

(4)

(5)

(1) 100% of total assets for controlled companies (stake > 50%) and pro rata for non-controlled companies (stake < 50%), except for OTP; (2) After tax before minority interest; (3) Includingdirect and indirect presence in the 25 CEE countries, excluding representative offices; (4) Results of RBI exclude group corporates, markets and corporate center segments; (5) Total assetsfor SI, HR and GG as of YE 2012; (6) Excluding SI, HR and GG; (7) Disposal of HU and TR ongoing; (8) Considering presence in core countries only (i.e. CZ, SK, HU, BG), P&L based onunderlying figures. (9) Branches as of end of 2012

SOURCE: UniCredit CEE Strategic Analysis

(9)(8)

(6)(7)

n.m.

10

The Leading Network in Central & Eastern EuropeBroad presence of UniCredit / Bank Austria in CEE Region

The leading player in CEE:

# 1 by assets, branches and

net profit

~ € 75 bn Direct funding (Primary

funds = Deposits from customers +

Debt securities in issue)

~2,600 branches and ~48,000 FTE

Within top 5 in 10 Countries

Note: Data as of 31 March 2014, ranking and market share as of 31 December 2013

1) Including Turkey (Yapi Kredi)2) Poland (Bank Pekao) under management of UniCredit3) Total Assets not included as Turkey is consolidated at equity as from 20144) Since 1 Dec. 2013, foreign branch of UniCredit Bank Czech Republic and Slovakia5) Representative Office of UniCredit Russia

Ranking

Total

Assets

(€ mn)

Customer

Loans

(€ mn)

Primary

Funds

(€ mn)

Market

Share

Offices

1)

Poland 2 35,501 25,539 27,496 11% 1,001

Turkey 5 - - - 9% 986

o/w Azerbaijan 12 - - - 2% 14

Croatia 1 14,773 9,710 8,476 27% 138

Russia 9 18,174 11,908 11,287 2% 109

Czech Republic 4 18,376 11,822 12,724 9% 106

Slovakia 5 - - - 7% 78

Hungary 6 5,567 3,005 3,201 6% 100

Bulgaria 1 6,961 4,904 4,467 15% 206

Romania 4 6,421 4,186 3,044 8% 188

Ukraine ("held for sale") 6 - - - 3% 388

Slovenia 5 2,812 2,132 1,389 6% 34

Bosnia & Herzegovina 1 2,428 1,596 1,685 21% 127

Serbia 3 2,236 1,359 951 9% 73

Rep. Offices

Belarus

Macedonia

Montenegro

CEE Division (excl. PL) - 82,473 50,622 47,224 - 2,553

CEE Region - 117,975 76,161 74,719 - 3,554

2)

4)

3)

5)

11

Turkey and Ukraine shown separately as

Yapi Kredi (Turkish Joint-Venture) consolidated at equity as from 1 January 2014

Ukrsotsbank (Ukraine) reclassified to “Held for Sale” on 31 December 2013

CEE Division*) – incl. Details on Turkey and Ukraine(as of 31 March 2014)

*) excl. Poland (under direct management of UniCredit)**) Primary funds (= Direct Funding) = Deposits from Customers + Debt Securities in Issue

9.6% 5.1%

8.4% 4.7%

Market Share CEE Division – Customer Loans(as of 31 Dec. 2013)

Market Share CEE Division – Customer Deposits(as of 31 Dec. 2013)

Excl. Russia Incl. Russia

Excl. Russia Incl. Russia

(€ mn)

Total Assets 82,473 56,819 23,239 2,949

Loans to Customers 50,622 36,995 15,131 2,134

Primary Funds**) 47,224 35,342 14,455 1,211

UkraineTurkey

(at 40.9%)CEE

Turkey

(at 100%)

12

The CEE Division of Bank Austria manages the largest banking network in CEE:

~ 30,000 FTE and about 1,600 branches in full subsidiaries, plus a further 17,500 FTE and1,000 branches in Turkey (the 41%-stake now being consolidated at equity)

CEE Strategy overall confirmed: Organic growth, with a specific focus on growth regionsand areas. The classical branch network is being optimized and complemented by anongoing extension of alternative distribution channels (e.g. internet and mobile banking).Strong local presence, supported by leveraging on Group Platforms (incl. Cross-BorderBusiness and International Clients)

CEE StrategyRole of the region as key income generator for Bank Austria confirmed

Measures to further improve profitability andefficiency:

Completed in 2013:

Sale of Kazakh unit (ATF Bank) in April 2013

Merger of Czech and Slovak subsidiaries(Dec. 2013)

Establishment of a Russian joint-venture withRenault/Nissan (Dec. 2013)

Sale of Turkish insurance subsidiary(Yapi Sigorta) to Allianz (July 2013)

Downsizing of presence in the Baltic countriesto only leasing business (Dec. 2013)

Planned/ongoing:

Planned sale of Ukrsotsbank

Integration of UniCredit leasing and consumerfinance activities into CEE banking network

13

Transactions

Czech Republic & Slovakia: Legal merger of UniCredit Bank Czech Republic and UniCredit Bank Slovakia

completed on 1 December 2013 the bank in Slovakia is now a full branch of the bank in the Czech Republic

Baltics: UniCredit Bank Latvia’s de-licensing completed, merger with UniCredit Leasing planned for mid 2014

Ukraine: Legal and operational merger between Ukrsotsbank and UniCredit Bank Ukraine (formerly a

subsidiary of Bank Pekao, Poland) completed on 2 December 2013

Kazakhstan: ATF Bank sold in April 2013

Turkey: Sale of Yapi Kredi Sigorta (insurance company)

Russia: Sale of MICEX (Moscow Interbank Currency Exchange) shares

Leasing: Transfer of CEE leasing companies to CEE banks started; to be closed in 2014

Romania and Czech Republic: Acquisition of the retail portfolios of Royal Bank of Scotland (including more

than 65,000 clients) and AXA in the Czech Rep. (29,000 clients)

Efficiency enhancement

Continued focus on cost optimization

RWA efficiency project: Reduction of € 2 bn in 2013 (> € 8 bn RWA reduction since 2011)

Value creation & profitability

Launch of “CEE 2020” strategic program targeting transformation and improvement of profitability in key areas

Russia: Joint Venture with Renault-Nissan and Infiniti – operations started in 4Q13

Excellence in CIB proven by significantly higher customer satisfaction vs. global peers in all the sub-

segments and first top position in most of the League Tables

Increased number of clients (~ 500,000 Retail and ~ 3,000 Corporate clients)

CEE – Bank Austria’s Milestones and Achievements 2013 in Detail

Austria - SmartBanking Solutions project –the future of Retail Banking

SmartBanking Solutions project is of strategic importance to improve sales efficiency by amodern needs-based multi-channel offering

New business model for Retail sales:

Blending of virtual and stationary branches

Personal services provided via video telephony, e-mail, telephone and SMS

Customers decide when, where and how they contact Bank Austria

Reorientation of branch network:

At present, 90% of our customers are serviced in 75 % of our 260 retail branches – focus onthese branches, including a further upgrading

New, modern branch formats: the new advisory service centres will offer a comprehensiverange of banking services for all customer groups in cities

The classic branch will also be re-launched to make advisory services the focus of itsactivities

Some of the remaining 25% will be converted into modern self-service branches with thelatest technology. As highly efficient banking offices, these will meet basic financial needs

The other remaining branches will be integrated into other branches

14

Strategy for 2014: Bank Austria, a modern retail bankand the most innovative player in the Austrian market

15

Strategic repositioning

Basic services bank Basic top-quality services around the clock,

meeting everyday financial needs

Permanent presence for banking transactions tomeet everyday needs

Advisory bank Specialists offer various customer groups

highly qualified advisory services at branchesand via SmartBanking

Trend-setting offers and products witha new pricing structure

Unique positioning as the mostinnovative player in Austria

Targets to be achieved by 2017 350,000 SmartBanking customers

Including 80,000 new customers

16

Rating Overview

(as of 23 June 2014)

1) Subordinated (Lower Tier II)2) Grandfathered debt is rated Baa1 (senior debt) and respectively Ba2 (subordinated debt) by Moody’s and AA- (senior and subordinated debt)

by Standard & Poor’s. This relates to securities issued before 31 Dec. 2001 which benefit from a secondary liability by the City of Vienna.

Short Term Long Term Subordinated 1) Short Term Long Term Subordinated 1) Short Term Long Term Subordinated 1)

P-2 Baa2 Ba2 A-2 A- BBB- - - -

Negative

outlook

Credit Watch

Negative

P-2 Baa2 Ba2 A-2 BBB BBB- F2 BBB+ BBB

Negative

outlook

Negative

outlook

Negative

outlook

Bank Austria -

Public Sector

Covered Bond

Bank Austria -

Mortgage Covered

Bond

S&P

Aaa - -

Moody's S&P Fitch

UniCredit S.p.A.

Bank Austria 2)

FitchMoody's

Aa1 - -

17

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

18

P&L of Bank Austria – Full year 2013Solid operative performance but high one-offs

Note: Non-operating items include provisions for risks and charges, profit from investments and integration costs

1-12 1-12(€ mn) 2013 2012

Operating Income 6,960 6,681 4.2% 1,850 1,673 1,723 10.6% 7.4%

Operating Costs -3,856 -3,786 1.9% -1,001 -920 -993 8.8% 0.8%

Operating Profit 3,104 2,895 7.2% 849 753 730 12.8% 16.4%

Net Write-Downs of Loans -1,441 -969 48.7% -565 -289 -279 95.6% >100.0%

Net Operating Profit 1,663 1,926 -13.7% 285 464 451 -38.7% -36.9%

Non-Operating Items -531 -656 -19.0% -568 163 -534 >-100.0% 6.4%

Profit Before Tax 1,131 1,269 -10.9% -284 627 -83 >-100.0% >100.0%

Income Tax -534 -327 63.4% -259 -100 -80 >100.0% >100.0%

Goodwill Impairments / Other -2,200 -523 >100.0% -2,146 -7 -516 >100.0% >100.0%

Group Net Profit -1,603 419 >-100.0% -2,689 520 -680 >-100.0% >100.0%

Cost / Income Ratio - excl. bank levies (in %) 53.4% 54.7% -134 bp 52.6% 53.3% 55.4% -73 bp -281 bp

y/y q/q y/y4Q13 3Q13 4Q12

Operating income y/y up by 4.2% - despite major one-offs in 2012 (€ +126 mn ex hybrid buy-back). In particular, fee and trading

income improved significantly despite currency depreciation

Cost development flat, also supported by currency depreciation. Increase only due to again higher bank levy and FTT in CEE

Positive development in operating customer business: Operating profit increased by 7% to € 3.1 bn

LLPs up by 48.7% - impacted by higher provisioning in particular in South East Europe and Hungary, leading to an improvement of

the Coverage ratio

Negative Group Net Profit (€ -1,603 mn) due to full impairment of goodwill (€ 2.0 bn) and further one-off effects

19

P&L of Bank Austria – 1Q14Good start into 2014 with a solid operative performance

Note: Non-operating items include provisions for risks and charges, profit from investments and integration costs

Operating income y/y down by 6.5%, mainly due to lower contribution from Turkey and Russia (partly driven bycurrency devaluation)

Costs lower vs. 4Q13 and 1Q13, driven by strict cost management and despite further increase in Austrian bank levy

Net write-downs of loans lower vs. 4Q13 and 1Q13, driven by lower needs in CEE. Coverage ratio remains at 55%

Group Net Profit of € 350 mn clearly above previous year, supported by positive result of 2 real estate transactionsin Austria (included in non-operating items)

(€ mn)

Operating Income 1,376 1,694 1,472 -18.8% -6.5%

Operating Costs -835 -892 -844 -6.3% -1.0%

Operating Profit 541 802 628 -32.6% -13.9%

Net Write-Downs of Loans -190 -532 -246 -64.3% -22.6%

Net Operating Profit 350 270 382 29.8% -8.3%

Non-Operating Items 70 -571 -67 >-100.0% >-100.0%

Profit Before Tax 421 -301 316 >-100.0% 33.2%

Income Tax -64 -245 -38 -74.0% 66.9%

Goodwill Impairments / Other -7 -1,797 4 -99.6% >-100.0%

Group Net Profit 350 -2,344 281 >-100.0% 24.5%

Cost / Income Ratio - excl. bank levies (in %) 56.5% 51.0% 53.5% 552 bp 298 bp

q/q y/y1Q14 4Q13 1Q13

20

Net Operating Profit Composition (€ mn)

-246

-532

-190

-844

1Q14

350

-835

1,376

4Q13

270

-892

1,694

1Q13

382

1,472

Net Operating Profit – Details BA GroupAlmost stable NOP due to lower LLPs and lower costs

LLP

Costs

Operating income

1-3/2014

350

-190

-835

1,376

1-3/2013

382

-246

-844

1,472

CEE

Austria

24%

76%

*) without Corporate Center

Share of Divisions *) –Net Operating Profit by region (%)

Reduction of revenues y/y due to currency

effects and more difficult environment in some

markets (Russia, Turkey). 4Q13 included some

positive one-off effects.

Y/y, decrease in costs despite higher bank

levies in Austria due to strict cost control and

also currency effects

Loan loss provisions decreased y/y

(especially in CEE)

21

Net Operating Profit Composition (€ mn)

-188

-10.6%

1-3/2014

337

-134

-404

875

1-3/2013

377

-422

986

Net Operating Profit CEE – Details1Q14 Net operating profit decreased due to lower operating income,despite lower costs and LLPs

Operating Income: Decrease due to lower trading

income in Russia, lower at equity income (Turkey) and

currency devaluations

Costs: decrease due to currency devaluation,

otherwise flat despite higher bank levies and Financial

Transaction Tax

LLP: Significantly lower LLP, mainly due to Croatia,

Czech Republic/Slovakia and Romania

Russia, Czech Republic/Slovakia, Croatia and

Bulgaria most important fully consolidated contributors;

Turkey also contributing well but consolidated at equity

starting from 2014

Net Operating Profit by region (€ mn)

LLP

Costs

Operating income

11

20

46

45

46

110

Romania

Croatia

o/w

CZ/SK

337

Bulgaria

Hungary

Russia

CEE

22

Cost of Risk (in basis points)Net Write-Downs of Loans (in mn €)

190

532

246

1Q144Q131Q13

110

191

37

33

66

97

38

43

CIB

CommercialBanking

BA Group

CEE

1-3/2014

FY13

Loan Loss Provisions and Cost of RiskLower LLPs in CEE leading to lower Cost of Risk

1-3/2014

190

1-3/2013

246

-23%

LLPs: decreased y/y by 23%, mainly due to CEE, partly due to write-backs in several countries

Cost of risk lower than in 2013 (BA Group -44 bps vs. FY13), with

Commercial Banking (i.e. the Austrian customer business) and CIB remaining at moderate

levels and

CEE risk costs strongly decreasing in 1Q14

23

Net Impaired Loans 1)

(in bn €)% of Net Impaired Loans

on Total Net Loans 1)

% Coverage Ratio onImpaired Loans 1)

1) on-balance clients (non-banks) only

Asset QualityNet Impaired Loans declining, coverage ratio clearly improving

Net impaired loans on

a decreasing trend y/y,

due to significant

bookings of LLP in

4Q13. Q/q, stable

(decrease due to Turkey,

excluded starting from

2014 due to

reclassification as equity

shareholding)

Net impaired loan ratio

stable, increase in

1Q14 due to exclusion

of Turkey

Coverage ratio on

impaired loans

improved y/y by 454

bp, reflecting a build-up

of provision stock mainly

in CEE. Coverage ratio

improved both in CEE

and Austria

-11%

1Q14

5.0

4Q13

5.1

1Q13

5.6

+17bp

1Q14

4,3%

4Q13

4,0%

1Q13

4,2%

+454bp

1Q14

55.0%

4Q13

54.9%

1Q13

50.4%

-14%

1Q14

1.4

4Q13

1.3

1Q13

1.6

-24bp

1Q14

2.3%

4Q13

2.2%

1Q13

2.5%

+390bp

1Q14

62.6%

4Q13

62.9%

1Q13

58.7%

-10%

1Q14

3.6

4Q13

3.8

1Q13

4.0

97bp

1Q14

6.6%

4Q13

5.5%

1Q13

5.6%

+505bp

1Q14

51.2%

4Q13

51.2%

1Q13

46.2%

BA Group

Austria

BA GroupBA Group

AustriaAustria

CEE CEECEE

24

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

25

Other Assets

OtherFinancial Assets

Loans andreceivableswith customers

Loansand receivableswith banks

Assets

179,158 (100%)

11,867 (7%)

29,351 (16%)

114,259 (64%)

23,680 (13%)

Equity

Other Liabilities

Debt securitiesin issue

Deposits fromcustomers

Deposits frombanks

Liabilities

179,158 (100%)

15,126 (8%)

14,597 (8%)

28,298 (16%)

95,805 (53%)

25,332 (14%)

Balance Sheet structure (as at 31 March 2014)

Balance Sheet (€ mn)

Balance sheet reduced to € 179 bn vs. prior periods due to Turkey (Yapi Kredi) being consolidated

at equity starting in 2014 (year-end 2013 adjusted accordingly to enable comparisons)

Classical commercial bank - customer loans and customer deposits represent a high share in the

overall balance sheet. Loans and primary funds (customer deposits + debt securities in issue) well

balanced

Solid capital base of € 15 bn

Change vs. 31 December 2013

+0.7%

03/14

179

12/13

178

Balance sheet Loans to customers

-0.5%

03/14

114

12/13

115

Deposits fromcustomers

Securitiesin issue

-1.2%

03/14

96

12/13

97 2827

03/14

+3.6%

12/13

(€ bn)

26

Loans to Customers1) (€ mn)

61,959

58,092

-5%

1Q14

114,259

59,654

54,606

4Q13

115,466

59,555

55,911

3Q13

118,056

60,460

57,596

2Q13

119,661

62,298

57,363

1Q13

120,051

Loan and Deposit VolumesLoans more than fully covered by deposits and debt securities in issue

0%

1Q14

95,805

51,132

44,672

4Q13

96,978

50,219

46,759

3Q13

92,266

49,023

43,242

2Q13

93,837

51,298

42,538

1Q13

95,830

52,621

43,209

Deposits from Customers1) (€ mn)

Austria

CEE

92%93%99%99%98%

Loans/Direct Funding Ratio

1) All figures recast (excl. Turkey and Ukraine)

Loans to customers -5% y/y due to decrease in Austria and currency devaluation in CEE, q/q down by -1%,decrease in CEE also driven by currency devaluation (mainly Russia)

Deposits from customers stable y/y, with growth in CEE being partially mitigated by currency devaluation.In Austria, the successful deposit campaign led to a positive trend in the last 2 quarters

Loans more than fully covered by deposits and debt securities in issue, Loans/Direct Funding Ratio improved toexcellent 92%

Austria

CEE

27

Customers loans / Primary funds (€ bn) 1)

Volumes in CEEStable business development, impact from currency movements

Loans to customers: decrease due to currencydevaluations in particular in Russia and Czech Republic(stable at current rates)

Primary funds: Increase y/y by € 1.2 bn, despitecurrency devaluations

Primary funds (€ bn) - March ‘14 1)

Customer loans (€ bn) - March ‘14

Regional Breakdown

1) Primary funds = Deposits from customers + Debt securities in issue

1Q14

47.5

54.6

4Q13

49.6

55.9

1Q13

46.3

58.1

Primary fundsCustomer loans

3

4

5

9

12

12Russia

CEE

Hungary

o/w

Bulgaria

Romania

55

Croatia

CZ / SK

3

3

4

8

13

11

CEE

CZ / SK

Croatia

Hungary

Romania

Bulgaria

Russia

47

o/w

Regional Breakdown

28

Credit risk

Operational risk

CVA charge

Market risk

1Q14 B3

123.5

103.5

13.2

1.25.6

2013

118.5

103.6

12.8

2.1

2012

130.1

114.9

12.6

2.5

Risk-Weighted Assets (€ bn)

CET1

Tier 1

1Q14 B3phase-in

13.5%

11.0%

11.0%

2013

13.5%

11.3%

11.6%

2012

12.5%

10.6%

10.9%

Capital Ratios

1Q14 B3phase-in

CET1

AdditionalTier 1

16.7

13.6

0.0

2013

16.0

13.4

0.3

2012

16.2

13.8

0.3

Regulatory Capital (€ bn)

Total CAR

Total Capital Total RWA

1) Starting with 2014, figures in accordance with Basel 3/CRR; transitional adjustments (phase-in) only relevant for capital, not for RWA

1)

1)

1)

Capital position and RWASound capital ratios

Common Equity Tier 1 (CET1) ratio stands at

solid 11.0% and Total Capital ratio at 13.5%

(both Basel 3 phase-in)

Safe capital base as Bank Austria – unlike its

main competitors – did not take up state capital

RWA development in 1Q14 influenced by

implementation of the CRR, leading to higher

market risk RWA in 2014. Decrease in 2013

includes sale of Kazakh subsidiary

29

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

30

Bank Austria Acts as Regional Liquidity Center for Austria / CEEand is a Strategic Issuing Platform for UniCredit Group

UniCredit S.p.A. – Holding

Bank capital

OBG (coveredbonds)

Registered sec./Schuldschein-darlehen (SSD)

Senior benchmark

Private placement

Retail issues

Mortgage- andPublic SectorPfandbriefe

Senior benchmark

Registered sec.(SSD, NSV*))covered / senior

Private placements

Retail Issues

Certificates

Mortgage- and PublicSector Pfandbriefe

Senior benchmark

Housing-bank-bonds(Wohnbaubank-anleihen)

Registered sec. (SSD,NSV*)) covered/senior

Private placements

Retail issues

RLC Italy

UniCredit S.p.A

(Baa2/BBB/BBB+)

RLC Germany

UniCredit Bank AG

(Baa1/A-/A+)

RLC Poland

Bank Pekao SA

(A2/BBB+/A-)

Retail issues

Bearer bonds

Own Issue Programs

Presence on the local and global markets

During the liquidity crisis no state aid needed

Coordination of the global market presence through UniCredit Holding

RLC Austria/CEE

UniCredit Bank

Austria AG

(Baa2/A-/-)

Long-Term Ratings by (Moody’s/S&P/Fitch) as of 23 June 2014 *) Namensschuldverschreibungen

31

Self-funding of Business Growth of Bank Austria Group

Business Growth of BA Group to be self-funded by a well-balanced mix of customer deposits

and market issuances

Well-diversified funding base due to BA’s commercial banking model. Priority is on growth of local funding

sources out of customer business with a variety of products (sight, savings, term deposits) as well as medium- and

long-term placements of own issues

The self-funding strategy of Bank Austria was demonstrated by returning to the capital markets: from 2010 focus

was given to issuance of benchmark-sized Pfandbriefe and since 2013 also on Senior Unsecured Benchmarks

The strict principle of self-sufficient funding of Bank Austria

• ensures that the proceeds are used primarily for business development of entities of Bank Austria Group

• enables Bank Austria to calculate its own funding costs according to its own risk profile

Same Principles apply for the CEE banks of BA Group

Also in CEE the business model as commercial bank with its priority on growth of local funding sources from

customer business leads to a well-diversified funding base

Self-sufficiency target is applied in CEE as a business principle of UniCredit Group and is also strongly favored

by regulators, e.g. introduction of ”Loans to Local Stable Funding Ratio - LLSFR” by Austrian National Bank (OeNB)

Through its know-how and international business relationships BA actively supports the development of

local capital markets, especially in local currency, e.g. local Covered Bond issuance in Czech Republic, first SME

Covered Bond in Turkey and Senior Unsecured issues in Russia, Turkey and Romania

32

Liquidity and Funding Management within BA Group based onclear and strict Risk Management Principles

Clear Rules and Principles in Bank Austria for the Management of Liquidity and Funding

Liquidity strategy

Bank Austria acting as an independent Regional Liquidity Center (RLC) within UniCredit Group - in line with the

self-funding principle of the new Group Strategy

Bank Austria manages the liquidity development in Austria and CEE

Clear operative rules

Active liquidity and funding management by defining short-term and structural liquidity and funding limits for all

banking subsidiaries of BA Group

In addition to the Austrian regulator’s principles, BA strictly monitors the balanced intra-group funding flows

within BA Group

All international and national legal / regulatory constraints have to be followed on single bank level

Bank Austria establishes a separate Funding and Liquidity Plan for Austria and its CEE subsidiaries as part of

the Funding and Liquidity Plan of UniCredit Group

331) Sum of net liquidity inflow + counterbalancing capacity

BA RLC 3 month available liquidity position 1) 2)

Structural liquidity ratio (1Y)

3) Calculated as ratio between liabilities (cumulative sum above one year) and assets (cumulative sum above one year)

2) Assuming no roll-over of current outstanding wholesale debt

BA Group-wide liquidity position is centrally managed byBank Austria’s ALM

Internal limit

0,88

0,90

0,92

0,94

0,96

0,98

1,00

1,02

1,04

Jan

-10

Feb

-10

Ma

r-10

Ap

r-1

0M

ay-

10

Jun

-10

Jul-

10

Au

g-1

0Se

p-1

0O

ct-1

0N

ov-

10

De

c-10

Jan

-11

Feb

-11

Ma

r-11

Ap

r-1

1M

ay-

11

Jun

-11

Jul-

11

Au

g-1

1Se

p-1

1O

ct-1

1N

ov-

11

De

c-11

Jan

-12

Feb

-12

Ma

r-12

Ap

r-1

2M

ay-

12

Jun

-12

Jul-

12

Au

g-1

2Se

p-1

2O

ct-1

2N

ov-

12

De

c-12

Jan

-13

Feb

-13

Ma

r-13

Ap

r-1

3M

ay-

13

Jun

-13

Jul-

13

Au

g-1

3Se

p-1

3O

ct-1

3N

ov-

13

De

c-13

Jan

-14

Feb

-14

Ma

r-14

Ap

r-1

4M

ay-

14

1Y Liquidity Ratio

1Y Limit

Prudent net liquidity reserve increasing at the

year-end

inflows from market and captive customer

base

positive effect of cash pooling

Cash horizon constantly above 3M (unchanged

vs Q4)

Sound counterbalancing capacity (approx.

€21bn avg)

Structural liquidity ratio(3) well above limits…

Internal rule of 0.90 for maturities above 1y

Level as of May ‘14: 1.04 (slightly improving

from 1.03 in April ‘14)

… thanks to

Improving Loan/Deposit-ratio

2014 M/L Term Funding Plan positively kicked

off

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

30

.09.

10

31

.10.

10

30

.11.

10

31

.12.

10

31

.01.

11

28

.02.

11

31

.03.

11

30

.04.

11

31

.05.

11

30

.06.

11

31

.07.

11

31

.08.

11

30

.09.

11

31

.10.

11

30

.11.

11

31

.12.

11

31

.01.

12

29

.02.

12

31

.03.

12

30

.04.

12

31

.05.

12

30

.06.

12

31

.07.

12

31

.08.

12

30

.09.

12

31

.10.

12

30

.11.

12

31

.12.

12

31

.01.

13

28

.02.

13

31

.03.

13

30

.04.

13

31

.05.

13

30

.06.

13

31

.07.

13

31

.08.

13

30

.09.

13

31

.10.

13

30

.11.

13

31

.12.

13

31

.01.

14

28

.02.

14

31

.03.

14

30

.04.

14

31

.05.

14

Good performance of all BA Covered Benchmark Bonds issued so far

34

Bank Austria Covered Bond Spread Comparison

Source: Bloomberg Mid ASW-Spread

35

Medium- & Long-Term Funding Development and Target 2014

Medium- & Long-Term Funding(in € bn)

Benchmark Issuances in 2013:

Senior Unsecured Bond in

January 2013 and its first tap in

May 2013 and a second in

November 2013 as pre-funding

for 2014 (€ 500 mn)

Mortgage Pfandbrief in July

and its tap in September 2013

Public Sector Pfandbrief

in October 2013

Execution and Plan for 2014:

Mortgage Pfandbrief

Benchmarks in January and in

April 2014 successfully placed

Public Sector Pfandbrief

Benchmark in May 2014

successfully placed

One Senior Unsecured

Benchmark planned2014

2.11

2014 Plan

4.06

2013

3.79o/w 0.5

Pre-Funding2014

2012

2.10

2011

4.63

2010

3.18

Pfandbriefe€ 2.3 bn






36

Maturity Profile(in € mn)

Split of Instruments(in € mn)

2,882

13,862

8,231

Subordinated Bonds

Senior Bonds

CoveredBonds

Maturity Profile of Bank Austria’s Own Issues(as of 30 April 2014)

Note: Data including issues sold through Group network

Above percentage distribution of

these instruments targeted to be

maintained at similar levels also

in the future

Approx. 15% of total own issues

were placed as retail issues

513

2,577

142

1,921

2016

4,663

842

3,668

152

2015

4,837

976

182

2014

2,782

1,315

1,467

0

after 2019

6,141

3,078

1,030

2,033

2019

1,959

1,011

947

1

2018

2,017

866

1,151

0

2017

Covered Bonds

Senior Bonds

Subordinated Bonds

24,976Total

37

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

Overview of Public Sector Pfandbrief Benchmark Issues 2014

Overview of Investors

In May, successful issue of a 7-year Public Sector Pfandbrief Benchmark

Bank AustriaPublic Sector Pfandbrief

1.375% € 500 mn May 2014 Mid-Swap +2526/05/2021

Corporates

3%

Insurance companies

4%Central Banks

10%

Banks

37%

Funds46%

SwitzerlandAsia

3% 3%

UKFrance

Nordics/Benelux2%

1%

3%

Italy

10%Austria

Germany

4%

71%

39

Overview of Mortgage Pfandbrief Benchmark Issues 2014

In January, successful issue of a 10-year Mortgage Pfandbrief Benchmark

Bank AustriaMortgage Pfandbrief

2.375% € 500 mn January 2014 Mid-Swap +3522/01/2024


6%

Insurance companies

9%Central Banks

Funds30% Banks55%

6%

10%

11%

Asia

2%

Switzerland

2%Spain

3%Italy

Nordics

Benelux

Austria

12%

Germany54%

In April, successful issue of a 5.5-year Mortgage Pfandbrief Benchmark

Bank AustriaMortgage Pfandbrief

1.25% € 500 mn April 2014 Mid-Swap +2314/10/2019

40

Overview of Senior Unsecured Benchmark Issues 2013

Senior Unsecured Benchmarks (January 2013 and its first tap in May and an additional one inNovember 2013) were successfully issued

Bank AustriaSenior Unsecured Bond

2.625% € 500 mn Jan. 2013 Mid-Swap +16330/01/2018


2.625% € 250 mn May 2013 Mid-Swap +10530/01/2018


6%

Other

10%Italy

3%Nordics

Switzerland5%

Netherlands 11%

France

12%

UK

13%

Austria17%

Germany

23%


2.5% € 500 mn Nov. 2013 Mid-Swap +13527/05/2019

8%6%

31%Banks

Other

Insurances

Funds54%

41

Overview of Covered Bond (Pfandbriefe) Benchmark Issues 2013

In July, Bank Austria successfully issued its first ever Mortgage Pfandbrief Benchmarkand first tap in September

Bank AustriaMortgage Pfandbriefand its tap

1.25%€ 500 mn€ 200 mn

July 2013Sept. 2013

Mid-Swap +26Mid-Swap +10

30/07/2018


1.875% € 500 mn Oct. 2013 Mid-Swap +2529/10/2020


In October, Bank Austria successfully issued an additional Public Sector Pfandbrief Benchmark

10%

Funds

38%

Banks

43%

Central banks

Insurances Other

1%8%

5%

4%

Switzerland 4%3%

3%

Italy

France 2%

UKNordics

Asia

3%

Austria

17%

Benelux

Germany57%

Other

2%

42

2010 – 2012 Bank Austria‘s issues of Public Sector Pfandbriefe have become an attractivefunding source

Overview of Public Sector Covered Bond (Pfandbrief) BenchmarkIssues before 2013


2.375% € 750 mn June 2010 Mid-Swap +45

24/02/2021 € 1 bn Feb. 2011 Mid-Swap +69

04/11/2016 € 500 mn Nov. 2011

15/06/2015

4.125%

2.875% Mid-Swap +85

2.625% 25/04/2019 € 500 mn April 2012 Mid-Swap +88




43

CEE – Local issuance activities strengthen the liquidity profile of ourbanking subsidiaries and open up new funding sources

RU 2y € 250m equ. RUB Feb. 2013 8.15%Senior Public

Market

RU 3y € 250m equ. RUB Feb. 2013 8.60%Senior Public

Market

SK 5y € 30m March 2013 2.10%Covered Bond

Mortgage

TR 7y € 370m equ. USD Jan. 2013 4.00%Senior Public

Market

RO 5y € 123m equ. RON June 2013 6.35%Senior Public

Market

TR 4.8y WAL*) € 380m equ.(USD 355m / € 115m)

July 2013 1.50%Diversified

Payment of Rights(DPR)

Note: TR = Turkey, RU = Russia, SK = Slovakia, RO= Romania

*) WAL = Weighted Average Life

RU 3y € 250m equ. RUB Nov. 2013 8.10%Senior Public

Market

TR 5y € 370m equ. USD Dec. 2013 5.25%Senior Public

Market

44

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

45

Executive Summary Bank AustriaPublic Sector Cover Pool

Aaa Rating by Moody‘s

ECBC Covered Bond Label has been granted to the Public Sector Cover Pool of Bank Austria

Cover Pool Volume as of 31 March 2014 amounts to € 7,245 mn

Average volume of loans is approx. € 1.97 mn

Average seasoning is 5.1 years

Parameters of Cover Pool

Weighted Average Life (in years incl. Amortization) 7.1

Contracted Weighted Average Life (in years) 9.8

Average Seasoning (in years) 5.1

Total Number of Loans 3,679

Total Number of Debtors 1,359

Total Number of Guarantors 273

Average Volume of Loans (in EUR) 1,969,355

Stake of 10 Biggest Loans 27.6%

Stake of 10 Biggest Guarantors 34.4%

Stake of Bullet Loans 56.9%

Stake of Fixed Interest Loans 36.2%

Amount of Loans 90 Days Overdue 0

Average Interest Rate 1.8%

Parameters of Issues:

Total Number 44

Average Maturity (in years) 4.3

Average Volume (in EUR) 124,881,844

46

Public SectorParameters of Cover Pool and Issues

Total Value of the Cover Pool as of 31 March 2014 in EUR equivalent: 7,245 mn

• thereof in EUR: 3,764 mn

• thereof in CHF: 1,610 mn

• thereof public sector bonds in EUR equivalent: 1,871 mn

Moody’s Rating: Aaa

Nominal / Present Value Over-Collateralization*): 41.5% / 30.9%

Total Value of Sold Covered Bonds as of 31 March 2014 in EUR: 5,120 mn

*) Austrian Mortgage Banking Act requires a nominal over-collateralisation of 2%. The basis for its calculation is a cover pool value reduced by legallydefined haircuts. Taking these haircuts into consideration, the cover pool value amounts to EUR 6,899 mn, thus the overcollateralization is 28.8%.Additionally, in its Articles of Association, UniCredit Bank Austria commits itself to an over-collateralisation on a present value basis.

Maturity of Assets in the Cover Pool in mn EUR in %

Maturity up to 12 months 1,259 17.4%

Maturity 12 - 60 months 1,021 14.1%

thereof Maturity 12 - 36 months 386 5.3%


Maturity 60 - 120 months 1,649 22.8%

Maturity longer than 120 months 3,316 45.8%

Total 7,245 100.0%

Maturity of Issued Covered Bonds in mn EUR in %

Maturity up to 12 months 1,296 25.3%


thereof Maturity 12 - 36 months 1,360 26.6%


Maturity 60 - 120 months 2,067 40.4%

Maturity longer than 120 months 338 6.6%

Total 5,120 100.0%

47

Public SectorMaturity Structure of Cover Pool and Issues

Vienna26%

Lower Austria12%

Upper Austria10%Salzburg

1%Tyrol3%

Styria14%

Carinthia11%

Burgenland4%

Vorarlberg3%

Republic of Austria16%

Regional Breakdown Austria

48

Public SectorRegional Breakdown of Assets*) in Austria

*) Considering Guarantors

Assets: Type of Debtor / Guarantor in mn EUR Number

State 540 7

Federal States 2,236 53

Municipalities 1,269 2,634

Guaranteed by State 611 143

Guaranteed by Federal States 1,669 281

Guaranteed by Municipalities 771 483

Other 150 78

Total 7,245 3,679

49

Public SectorAssets Volume Breakdown by Type of Debtor / Guarantor

State7%Federal States

31%

Municipalities18%

Guaranteed by State8% Guaranteed by

Federal States23%

Guaranteed byMunicipalities

11%

Other2%

Assets: Type of Debtor / Guarantor

thereof under 100,0001%

thereof 100,000 - 300,0003%

thereof 300,000 - 500,0002%

thereof 500,000 - 1,000,0004%

thereof 1,000,000 - 5,000,00015%

above 5,000,00075%

Breakdown by Size of Assets

Volume Breakdown by Size of Assets in mn EUR Number

below 300,000 239 2,131

thereof under 100,000 50 1,103

thereof 100,000 - 300,000 189 1,028

300,000 - 5,000,000 1,547 1,397

thereof 300,000 - 500,000 164 424

thereof 500,000 - 1,000,000 323 450

thereof 1,000,000 - 5,000,000 1,061 523

above 5,000,000 5,459 151

Total 7,245 3,679

50

Public SectorVolume Breakdown by Size of Assets

51

Executive SummaryBank Austria Mortgage Cover Pool New

Aa1 rating by Moody’s

Bank Austria decided to streamline its Mortgage Cover Pool targeting a simple and transparent

pool composition:

focus on Austrian mortgages only

change to whole loan reporting instead of collateral volume

Benefit:

pure Austrian risk offer to our investor base

no blending of risk, diversification to be decided by investor

simple pricing logic

Non-Austrian mortgages to be channeled into specific collateralized structure with focus on CEE

ECBC Covered Bond Label has been granted to the BA Mortgage Cover Pool

52

Bank Austria’s Whole Loan ApproachWhole Loan Approach and its Benefits for Investors

Scenario II = Approach of Bank Austria = Whole Loan Approach

Loan Volume

&

Value to cover issuedPfandbriefe

Scenario I: Split Loan Approach = Minimum Approach

Loan Volumesplit

Value of Mortgage

&

€ 100 € 100 = €60 + €40 € 60

€ 100 € 100 € 100

For optimization of its collateral value

loans are split into 2 parts:

1) included in cover pool and

2) not included in cover pool

The whole loan – and not only its legally

assigned value – is included in the cover

pool to collateralize BA‘s issued

Mortgage Pfandbriefe.

Thus, investors benefit from

collateralization above legal

requirement in BA‘s cover pool.

€60 = MaximumPfandbrief volumeissued accordingto HypBG

€40 = AdditionalPool volume

Value of Mortgage

Not inCover Pool

Loan inCover Pool

Value to cover issuedPfandbriefe

Loan inCover Pool

According to the Austrian Mortgage Banking Act (HypBG), the maximum coverage volume of ”Beleihungswert” is 60%(maximum current outstanding of the loan)

€60 = MaximumPfandbrief volumeissued accordingto HypBG

Parameters of Issues:

Total Number 105

Average Maturity (in years) 5.6

Average Volume (in EUR) 37,250,052

Parameters of Cover Pool

Weighted Average Life (in years incl. Amortization) 9.4

Contracted Weighted Average Life (in years) 13.5

Average Seasoning (in years) 6.7

Total Number of Loans 24,759

Total Number of Debtors 23,163

Total Number of Mortgages 24,759

Average Volume of Loans (in EUR) 299,638

Stake of 10 Biggest Loans 12.7%

Stake of 10 Biggest Debtors 16.2%

Stake of Bullet Loans 37.9%

Stake of Fixed Interest Loans 13.8%

Amount of Loans 90 Days Overdue 0

Average Interest Rate 1.9%

53

Mortgage Cover PoolParameters of the Cover Pool and Issues

Total Value of the Cover Pool as of 31 March 2014 in EUR equivalent: 7,523 mn

• thereof in EUR: 5,727 mn

• thereof in CHF: 1,691 mn

• thereof substitute cover in EUR: 105 mn

Moody’s Rating: Aa1

Nominal / Present Value Over-Collateralisation*): 92.3% / 93.0%

Total Value of Issued Mortgage Pfandbriefe as of 31 March 2014 in EUR: 3,911 mn

Total Value of Sold Mortgage Pfandbriefe as of 31 March 2014 in EUR: 2,611 mn

*) Austrian Mortgage Banking Act requires a nominal over-collateralization of 2%. The basis for its calculation is a cover pool value reduced by legally definedhaircuts. Taking these haircuts into consideration the overcollateralization is 20.4%. Additionally, in its Articles of Association, UniCredit Bank Austria commitsitself to an over-collateralization on a present value basis.

Maturity of Assets in the Cover Pool in mn EUR in %

Maturity up to 12 months 418 5.6%




Maturity 60 - 120 months 1,363 18.1%

Maturity longer than 120 months 4,641 61.7%

Total 7,523 100.0%

Maturity of Issued Covered Bonds in mn EUR in %

Maturity up to 12 months 871 22.3%




Maturity 60 - 120 months 1,213 31.0%

Maturity longer than 120 months 475 12.1%

Total 3,911 100.0%

54

Mortgage Cover PoolMaturity Structure of Cover Pool and Issues

Volume Breakdown by Size of Loans in mn EUR Number

below 300,000 2,647 22,220

thereof under 100,000 556 10,005

thereof 100,000 - 300,000 2,091 12,215

300,000 - 5,000,000 2,131 2,400

thereof 300,000 - 500,000 457 1,247

thereof 500,000 - 1,000,000 380 541

thereof 1,000,000 - 5,000,000 1,294 612

above 5,000,000 2,745 139

Total 7,523 24,759

55

thereof under100,000

7%

thereof 100,000 -300,000

28%

thereof 300,000 -500,000

6%

thereof 500,000 -1,000,000

5%

thereof 1,000,000- 5,000,000

17%

above 5,000,00037%

Breakdown by Size of Loans

Mortgage Cover PoolAssets Volume Breakdown

Vienna40%

Lower Austria26%

Upper Austria7%

Salzburg4%

Tyrol6%

Styria7%

Carinthia5%

Burgenland3%

Vorarlberg2%

Regional Breakdown Austria

56

Mortgage Cover PoolRegional Breakdown *) of Mortgages in Austria

*) Without substitute cover (consists of bonds)

Residential41%

Residential subsidized24%

Residential used forbusiness purposes

5%

Commercial30%

Mortgages / Type of Use

Mortgages Breakdown by Type of Use in mn EUR Number

Residential 3,007 21,347

Residential subsidized 1,751 2,046

Residential used for business purposes 408 952

Commercial 2,253 414

thereof Office 1,183 100

thereof Trade 593 37

thereof Tourism 162 61

thereof Agriculture 8 49

thereof mixed Use / Others 307 167

Total 7,419 24,759

57

Mortgage Cover PoolBreakdown*) by Type of Use

*) Without substitute cover (consists of bonds)

58

Mortgage Cover PoolBreakdown*) by Type of Use

Bank Austria’s Mortgage Cover Pool Value accounts for € 7,419 mn as of 31 March 2014

(without substitute cover)

All mortgages in cover pool are located in Austria

The main concentration is in the City of Vienna 40% and the state of Lower Austria 26%

Breakdown of cover pool by type of use:

70% residential real estate (thereof 24% subsidized)

30% commercial real estate, divides as follows:

Office 15.9%

Trade 8.0%

Tourism 2.2%

Mixed use 4.2%

*) all percent Values are respective cover pool value without substitute cover

59

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

60

Agenda

Annex

Bank Austria within UniCredit Group

Legal Situation – Austrian Covered Bonds

Real Estate Market Austria

61

UniCredit at a glanceA clear international profile based on a strong European identity

1) Based on latest available data. Source: Sodali*) Including unidentified shares owned by the Group and Cashes

Strong local roots in almost 20 countries

~ 131,000 employees

~ 8,000 branches

~ 32 mn customers in Europe

One of the most important banks in Europe

with total assets of ~ € 890 bn

One of the 28 Global Systemically Important

Banks (“G-SIBs”) worldwide

Market capitalization of over € 30 bn

Capital increase of € 7.5 bn in 2012, with

strong response from all investor clusters

Common Equity Tier 1 (CET1) Ratio at 9.9%

and Total Capital Ratio at 14.2% (Basel 3 phase-in)

– as of 31 March 2014

Main shareholders:

Stable shareholders, e.g. Foundations

Institutional investors

Retail investors

Shareholder Structure1)UniCredit Highlights

Retail

ItalianInstitutional

Investors

2.2%

Other*)

21.6%

Stable Shareholders

3.6%

InternationalInstitutionalInvestors

37.2%

35.4%

62

Role of Bank Austria within UniCredit

Within UniCredit, Bank Austria is the

Central hub for the CEE Region(except Poland) and the

Responsible unit for the Austrianmarket

Bank Austria benefits from being part ofUniCredit:

Strong market presence in 17European countries

Access to a worldwide network

Leveraging on the know-how of theGroup‘s product factories

Bank Austria as UniCredit‘s centralhub for the CEE Region:

Holding for banks in 13 CEEcountries with a population ofaround 300 mn

Managing a network of about1,600 branches and 30,000FTE in CEE

Development of retail andcorporate business in the region

Liquidity management for theCEE subsidiaries

Management of credit andmarket risk

Responsibility for HRdevelopment

63

Agenda

Annex




64

Austrian Real Estate MarketOverview

Austrian Real Estate Market shows rising price levels and stable demand

Prices and new building volumes for commercial real estate (commerce and industry as well

as offices) are stable

Prices for residential real estate increased significantly within the last years (see next page),

but not reaching the excessive levels of comparable other European real estate markets

This increase is due to strengthened private demand and is expected to slow down in the future.

In our opinion, the market is not over-priced as there are stabilizing factors:

High level of owners equity

High fees (tax and others) keep bargain hunters away from the market

High level of public ownership and subsidized housing and a social tenancy law are limiting

rental fees. Therefore, market participation of investors taking an eye on high yields is limited

65

Austrian Real Estate MarketPrices for residential real estate

Source: OeNB (Austrian Central Bank), TU Wien, Institut für Stadt- und Regionalforschung, ECB

80

100

120

140

160

180

200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Residential Real Estate Price Index (2000 = 100)

Austria without Vienna Vienna

Residential real estate price development has been stable

66

Austrian Real Estate MarketOffice Market

Source: CBRE, IRG

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

500.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e

Office space in Vienna 2001 - 2013e

New spaces built in m² Rent able space in m²

Viennese office market has been one of the most through steady European markets

for years

67

Agenda

Annex




68

Austrian Legal FrameworkMortgage and Public Sector Pfandbriefe

Austrian Covered Bonds

Pfandbriefe

Pfandbriefgesetz(Pfandbrief Law 1938)

Hypothekenbankgesetz(Mortgage Banking Act 1899)

FundierteSchuldverschreibungen

Law of 1905

Bank Austria

Remark:Austrian ‘Mortgage Pfandbriefe‘ also follow the same legal regulation as ‘Public Sector Pfandbriefe‘

69 * if included in the Articles of Association of the respective credit institution

Austrian„Hypothekenbankgesetz“ wasinitially based on the Germanlegislation

Important changes to theGerman "Pfandbrief" -legislation were followed by theAustrian"Hypothekenbankgesetz",which continues to reflect theprincipal features of theGerman "Pfandbriefgesetz”

Main differences in the currentversion are:

• German law also allowscollateral assets fromnon-European countries

• German law includescompulsory NPV-matching, whereas inAustria a voluntarycommitment is foreseento be stipulated in thearticles of association.Bank Austria, accordingly,included such clause inits articles of association

Comparison Austria vs. Germany

Criteria of Pfandbrief law /Hypothekenbankgesetz

Austria Germany

Pfandbrief law in place YES YES

Mortgage and public sector

collateral assets in separate poolsYES YES

Cover register YES YES

Collateral assets limited to Europe YES X

Legally required minimum over-

collateralizationYES YES

Cover pool monitoring (Trustee) YES YES

Special proceedings in case ofinsolvency

YES YES

Pfandbriefe remain outstanding in

case of issuer‘s bankruptcyYES YES

NPV matching YES* YES

70

Your Contacts

CFO FinanceUniCredit Bank Austria AG

Martin KlauzerHead of FinanceTel. +43 (0) 50505 [email protected]

Thomas Ruzek

Head of Strategic Funding

Tel. +43 (0) 50505 82560

[email protected]

Gabriele WiebogenHead of Long Term FundingTel. +43 (0) 50505 [email protected]

Werner Leitner

Head of Cover Pool Management

Tel. +43 (0) 50505 82647

[email protected]

CFO Planning & Controlling Austria

UniCredit Bank Austria AG

Günther StromengerHead of Corporate RelationsTel. +43 (0) 50505 [email protected]

Impressum

UniCredit Bank Austria AGCFO FinanceA-1010 Vienna, Schottengasse 6-8

71

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