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BAWAG Group

Profit Statement 2015 2016 2017
Net Interest Income EUR mil 712 729 783
Net Fee Income EUR mil 186 193 217
Other Income EUR mil 75.0 59.1 137
Total Revenues EUR mil 973 981 1,138
Staff Cost EUR mil 238 268 326
Operating Profit EUR mil 540 542 609
Provisions EUR mil 45.8 42.7 61.8
Net Profit EUR mil 394 474 467
Balance Sheet 2015 2016 2017
Interbank Loans EUR mil 1,710 1,635 3,660
Customer Loans EUR mil 24,713 28,498 30,804
Total Assets EUR mil 35,708 39,761 46,071
Shareholders' Equity EUR mil 2,957 3,125 3,610
Interbank Borrowing EUR mil 3,586 2,064 4,009
Customer Deposits EUR mil 21,692 26,030 30,947
Issued Debt Securities EUR mil 3,236 4,900 4,938
Ratios 2015 2016 2017
ROE % 14.1 15.6 13.9
ROA % 1.12 1.26 1.09
Costs (As % Of Assets) % 1.23 1.16 1.23
Costs (As % Of Income) % 44.5 44.8 46.5
Capital Adequacy Ratio % 15.0 16.2 ...
Net Interest Margin % 2.02 1.93 1.83
Loans (As % Of Deposits) % 114 109 99.5
NPLs (As % Of Loans) % 2.80 1.91 2.30
Provisions (As % Of NPLs) % 22.7 37.5 38.6
Valuation 2015 2016 2017
Price/Earnings (P/E) 11.3 9.37 9.53
Price/Book Value (P/BV) 1.50 1.42 1.23
Earnings Per Share (EPS) 3.94 4.74 4.67
Book Value Per Share 29.6 31.3 36.1

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summary Unit 2012 2013 2014 2015 2016 2017
income statement            
Net Interest Income EUR mil ... ... 666 712    
Total Revenues EUR mil ... ... 909 973    
Operating Profit EUR mil ... ... 457 540    
Net Profit EUR mil ... ... 315 394    
balance sheet            
Interbank Loans EUR mil ... ... 1,518 1,710    
Customer Loans EUR mil ... ... 21,779 24,713    
Debt Securities EUR mil ... ... 9,047 6,958    
Total Assets EUR mil ... ... 34,854 35,708    
Shareholders' Equity EUR mil ... ... 2,619 2,957    
Interbank Borrowing EUR mil ... ... 2,420 3,586    
Customer Deposits EUR mil ... ... 21,127 21,692    
Issued Debt Securities EUR mil ... ... 4,438 3,236    
ratios            
ROE % ... ... 12.0 14.1    
ROA % ... ... 0.904 1.12    
Costs (As % Of Assets) % ... ... 1.30 1.23    
Costs (As % Of Income) % ... ... 49.7 44.5    
Capital Adequacy Ratio % ... ... 15.9 15.0   ...
Net Interest Margin % ... ... 1.91 2.02    
Interest Income (As % Of Revenues) % ... ... 73.2 73.2    
Fee Income (As % Of Revenues) % ... ... 21.8 19.1    
Staff Cost (As % Of Total Cost) % ... ... ... 55.0    
Equity (As % Of Assets) % ... ... 7.51 8.28    
Loans (As % Of Deposits) % ... ... 103 114    
Loans (As % Assets) % ... ... 62.5 69.2    
NPLs (As % Of Loans) % 5.47 4.14 3.26 2.80    
Provisions (As % Of NPLs) % ... ... 25.0 22.7    
valuation            
Market Capitalisation (End Of Period) USD mil ... ... ... 4,840    
Number Of Shares (Average) mil ... ... ... 100    
Share Price (End Of Period) ... ... ... 44.5    
Earnings Per Share (EPS) ... ... ... 3.94    
Book Value Per Share ... ... ... 29.6    
Price/Earnings (P/E) ... ... ... 11.3    
Price/Book Value (P/BV) ... ... ... 1.50    
Earnings Per Share Growth % ... ... ... ...    
Book Value Per Share Growth % ... ... ... 6.99    
income statement Unit 2012 2013 2014 2015 2016 2017
income statement            
Interest Income EUR mil ... ... 1,090 1,051    
Interest Cost EUR mil ... ... 424 339    
Net Interest Income EUR mil ... ... 666 712    
Net Fee Income EUR mil ... ... 198 186    
Other Income EUR mil ... ... 45.7 75.0    
Total Revenues EUR mil ... ... 909 973    
Staff Cost EUR mil ... ... ... 238    
Depreciation EUR mil ... ... ... 38.9    
Other Cost EUR mil ... ... ... 156    
Operating Cost EUR mil ... ... 452 433    
Operating Profit EUR mil ... ... 457 540    
Provisions EUR mil ... ... 84.3 45.8    
Extra and Other Cost EUR mil ... ... 56.9 75.8    
Pre-Tax Profit EUR mil ... ... 316 419    
Tax EUR mil ... ... 0.500 24.1    
Minorities EUR mil ... ... 0.700 0    
Net Profit EUR mil ... ... 315 394    
growth rates            
Net Interest Income Growth % ... ... ... 6.99    
Net Fee Income Growth % ... ... ... -6.02    
Total Revenue Growth % ... ... ... 7.03    
Operating Cost Growth % ... ... ... -4.16    
Operating Profit Growth % ... ... ... 18.1    
Pre-Tax Profit Growth % ... ... ... 32.4    
Net Profit Growth % ... ... ... 25.2    
balance sheet Unit 2012 2013 2014 2015 2016 2017
balance sheet            
Cash EUR mil ... ... 684 809    
Interbank Loans EUR mil ... ... 1,518 1,710    
Customer Loans EUR mil ... ... 21,779 24,713    
Retail Loans EUR mil 6,966 6,964 7,402 10,464    
Mortgage Loans EUR mil 3,985 4,235 4,598 7,236   ...
Consumer Loans EUR mil 2,981 2,729 2,804 3,228   ...
Corporate Loans EUR mil ... ... 14,377 14,250    
Debt Securities EUR mil ... ... 9,047 6,958    
Fixed Assets EUR mil ... ... 139 117    
Total Assets EUR mil ... ... 34,854 35,708    
Shareholders' Equity EUR mil ... ... 2,619 2,957    
Of Which Minority Interest EUR mil ... ... 0 1.00    
Liabilities EUR mil ... ... 32,235 32,751    
Interbank Borrowing EUR mil ... ... 2,420 3,586    
Customer Deposits EUR mil ... ... 21,127 21,692    
Retail Deposits EUR mil ... ... 15,881 15,663    
Issued Debt Securities EUR mil ... ... 4,438 3,236    
Other Liabilities EUR mil ... ... 4,250 4,237    
asset quality            
Non-Performing Loans EUR mil 1,253 886 717 696    
Gross Loans EUR mil 22,913 21,377 21,958 24,871    
Total Provisions EUR mil ... ... 179 158    
growth rates            
Customer Loan Growth % ... ... ... 13.5    
Retail Loan Growth % ... -0.027 6.29 41.4    
Mortgage Loan Growth % ... 6.28 8.57 57.4   ...
Consumer Loan Growth % ... -8.45 2.74 15.1   ...
Corporate Loan Growth % ... ... ... -0.888    
Total Asset Growth % ... ... ... 2.45    
Shareholders' Equity Growth % ... ... ... 12.9    
Customer Deposit Growth % ... ... ... 2.67    
Retail Deposit Growth % ... ... ... -1.37    
ratios Unit 2012 2013 2014 2015 2016 2017
ratios            
ROE % ... ... 12.0 14.1    
ROA % ... ... 0.904 1.12    
Costs (As % Of Assets) % ... ... 1.30 1.23    
Costs (As % Of Income) % ... ... 49.7 44.5    
Capital Adequacy Ratio % ... ... 15.9 15.0   ...
Tier 1 Ratio % ... ... 12.2 12.3    
Net Interest Margin % ... ... 1.91 2.02    
Interest Spread % ... ... ... 1.94    
Asset Yield % ... ... 3.13 2.98    
Cost Of Liabilities % ... ... ... 1.04    
Interest Income (As % Of Revenues) % ... ... 73.2 73.2    
Fee Income (As % Of Revenues) % ... ... 21.8 19.1    
Other Income (As % Of Revenues) % ... ... 5.03 7.71    
Cost Per Employee USD per month ... ... ... 8,695    
Cost Per Employee (Local Currency) EUR per month ... ... ... 7,586    
Staff Cost (As % Of Total Cost) % ... ... ... 55.0    
Equity (As % Of Assets) % ... ... 7.51 8.28    
Loans (As % Of Deposits) % ... ... 103 114    
Loans (As % Assets) % ... ... 62.5 69.2    
NPLs (As % Of Loans) % 5.47 4.14 3.26 2.80    
Provisions (As % Of NPLs) % ... ... 25.0 22.7    
Provisions (As % Of Loans) % ... ... 0.822 0.640    
Cost of Provisions (As % Of Loans) % ... ... 0.387 0.197    
other data Unit 2012 2013 2014 2015 2016 2017
other data            
Employees ... ... 2,828 2,615    

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Finance

BAWAG Group has been growing its revenues and asset by 7.76% and 9.75% a year on average in the last 3 years. Its loans and deposits have grown by 12.3% and 13.6% a year during that time and loans to deposits ratio reached 99.5% at the end of 2017. The company achieved an average return on equity of 14.5% in the last three years with net profit growing 14.0% a year on average. In terms of operating efficiency, its cost to income ratio reached 46.5% in 2017, compared to 45.3% average in the last three years.

Equity represented 7.84% of total assets or 11.7% of loans at the end of 2017. BAWAG Group's non-performing loans were 2.30% of total loans while provisions covered some 38.6% of NPLs at the end of 2017.

Valuation

BAWAG Group stock traded at 44.5 per share at the end of 2017 resulting in a market capitalization of USD 5,330 mil. Over the previous three years, stock price rose by 0% or 0% a year on average. That’s compared to an average ROE of 14.5% the bank generated for its shareholders. This closing price put stock at a 12-month trailing price to earnings (PE) of 9.53x and price to book value (PBV) of 1.23x in 2017.