DGAP-News: UniCredit Bank Austria AG: Results for the first three months of 2012: Bank Austria posts first-quarter net profit of EUR 399 million
(firmenpresse) - DGAP-News: UniCredit Bank Austria AG / Key word(s): Quarter Results
UniCredit Bank Austria AG: Results for the first three months of 2012:
Bank Austria posts first-quarter net profit of EUR 399 million
10.05.2012 / 14:31
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Corporate News
Bank Austria's results for the first three months of 2012
Date of entry: 10 May 2012
Results for the first three months of 2012:
Bank Austria posts first-quarter net profit of EUR 399 million
- Net operating profit up by 20 per cent, reflecting sound customer
business, a flat cost trend and a further decline in the provisioning
charge
- Lending volume up by 3.7 per cent to EUR 133.4 billion compared
with Q1 2011, 7 per cent increase in deposits from customers to EUR
105.4 billion
- Net write-downs of loans lower in both Austria and CEE; overall,
down by 25 per cent to EUR 284 million
- Charge for bank levies totals EUR 24.3 million
- Buyback of hybrid instruments has a positive effect of EUR 124
million before tax
- Profit before tax up by 18 per cent to EUR 527 million
- Net profit up by 17 per cent to EUR 399 million
- Excellent Core Tier 1 capital ratio of 10.5 per cent
- Leverage ratio (Footnote 1) continues to decline to 12.6
Bank Austria's CEO Willibald Cernko: 'We have got off to a good start in
the current year, with net profit of close to EUR 400 million. Commercial
banking business with customers has shown a good performance, costs are
under control, and net write-downs of loans continued to decline in both
Austria and Central and Eastern Europe. In the first quarter we also
benefited from a positive special effect resulting from the buyback of
hybrid instruments. Demand in the market remains subdued, however, and has
not yet returned to pre-crisis levels. At the European level, discussions
on austerity versus growth programmes and on banking regulation are not
helping to make the market environment less difficult. But our bank is
sound and conservatively positioned: with a Core Tier 1 capital ratio of
10.5 per cent and primary funds - i.e. customer deposits and debt
securities in issue - amounting to almost 102 per cent of our lending
volume, we are well placed for the future.'
Items in the income statement
Net interest in the first three months of 2012 was EUR 1,105 million. In an
environment characterised by low interest rates, net interest remained the
most important revenue component, at a level which was only 2 per cent
lower than in the same period of the previous year (Q1 2011: EUR 1,128
million).
Net fees and commissions showed a weaker trend; at EUR 383 million, they
were down by 7.1 per cent from the first quarter of the previous year (Q1
2011: EUR 413 million). The decline was due to restraint on the part of
customers, especially in securities business, in view of the volatile
market environment.
Net trading, hedging and fair value income rose strongly compared with the
previous year. The increase is partly explained by the larger amount of
Bank Austria's participation in profit before tax of the Markets
subdivision of UniCredit's CIB Division, to which CAIB's business was
transferred, and by higher net trading income generated in Central and
Eastern Europe (CEE). Another contribution to the increase in this item
came from a gain of EUR 124 million on the buyback of hybrid instruments in
the first quarter of 2012. Overall, net trading, hedging and fair value
income was EUR 293 million, up by 79.4 per cent (Q1 2011: EUR 164 million).
Operating income totalled EUR 1,811 million, an increase of 1.6 per cent
over the figure for the first three months of the previous year (Q1 2011:
EUR 1,783 million).
At EUR 961 million, operating costs were up by a moderate 3 per cent from
the comparative figure for the previous year (Q1 2011: EUR 934 million);
strict cost discipline and continued efficiency enhancement in current
operations kept the increase down. The charge for bank levies in Austria
and in several CEE countries led to an increase of 2.6 per cent in
operating costs.
The total charge for bank levies payable in the Bank Austria Group was EUR
24.3 million, of which EUR 24.0 million relates to Austria, EUR 2.4 million
to Slovakia and EUR 0.2 million to Slovenia. In Hungary, the bank levy
amounted to EUR 7 million, which is offset by a positive one-off effect of
EUR 9.3 million because part of the losses resulting from the early
repayment programme for foreign currency loans may be offset against the
bank levy.
Operating profit amounted to EUR 850 million, matching the figure for the
same period of the previous year (Q1 2011: EUR 849 million) thanks to the
sound operating performance and despite additional burdens resulting from
bank levies.
In the first quarter of 2012, net write-downs of loans and provisions for
guarantees and commitments were EUR 284 million, down by a substantial EUR
92 million or 24.5 per cent from the same period of the previous year (Q1
2011: EUR 376 million). The provisioning charge was reduced in Austrian
customer business and in Central and Eastern Europe. In Austria, the
provisioning charge declined by 36 per cent to EUR 65 million (Q1 2011: EUR
102 million), in CEE by 20 per cent to EUR 219 million (Q1 2011: EUR 274
million). Overall, the cost of risk (net write-downs of loans and
provisions for guarantees and commitments as a proportion of average loans
to customers) declined from 116 basis points (bp) in the previous year to
85 bp in Q1 2012.
Net operating profit - i.e. operating profit less net write-downs of loans
and provisions for guarantees and commitments, the key measure of operating
performance - improved strongly in the first quarter of 2012, by 19.6 per
cent to EUR 566 million, compared with the same period of the previous year
(Q1 2011: EUR 473 million). This favourable development was driven by a
sound operating performance from customer business and by a further decline
in the provisioning charge.
Provisions for risks and charges were EUR 8 million, down by EUR 24 million
from the same period of the previous year. Among the other non-operating
items, the net result from investments was negative, at minus EUR 31
million.
Profit before tax for the first quarter of 2012 rose by 17.5 per cent to
EUR 527 million (Q1 2011: EUR 448 million). Income tax for the period
amounted to EUR 110 million, an increase of 24 per cent over the previous
year, giving an effective tax rate of 20.9 per cent (Q1 2011: 19.8 per
cent).
Profit for the period was EUR 417 million, up by 15.9 per cent from the
previous year (Q1 2011: EUR 360 million). After deduction of the Purchase
Price Allocation effect and of the goodwill impairment charge, net profit
attributable to the owners of Bank Austria was EUR 399 million, up by 17.3
per cent from the same period of the previous year (Q1 2011: EUR 340
million).
The following key financial data have been calculated on the basis of the
above-mentioned results:
- Return on equity before tax was 12.0 per cent.
- Return on equity after tax was 9.4 per cent.
- The cost/income ratio was 53.1 per cent.
- The risk/earnings ratio (provisioning charge as a percentage of net
interest income) was 25.0 per cent.
- The total capital ratio (based on all risks) was 12.23 per cent.
- The Tier 1 capital ratio (based on all risks) was 10.72 per cent.
- The Core Tier 1 capital ratio (based on all risks) was 10.50 per cent.
Results of the Divisions
Bank Austria reports its results in four Divisions: Family&SME Banking
(F&SME), Private Banking, Corporate&Investment Banking (CIB) and CEE
Banking. The bank also shows results for its Corporate Center.
Profit before tax generated by the Family&SME Banking Division in the
first quarter of 2012 was EUR 20 million, up by 22.2 per cent (Q1 2011: EUR
16 million). The improvement resulted from strict cost management and
especially from a substantial decline in the provisioning charge, which was
down by 39.7 per cent from the previous year. The cost/income ratio was
80.9 per cent (Q1 2011: 75.2 per cent).
The Private Banking Division achieved a 35 per cent increase in net
interest in the first quarter of 2012. Net fees and commissions were down
by 7.2 per cent from the previous year, due to restraint on the part of
customers in view of continued volatility in the market environment. Profit
before tax generated by the Division was EUR 10 million, up by 7.7 per cent
from the previous year (Q1 2011: EUR 10 million). The cost/income ratio
declined slightly, to 69.8 per cent (Q1 2011: 71.6 per cent).
In the first quarter of 2012, the Corporate&Investment Banking (CIB)
Division recorded a profit before tax of EUR 122 million, a decrease of 7.1
per cent from the previous year (Q1 2011: EUR 132 million). This reflects
two developments: while net interest rose and the provisioning charge
continued to decline, net fees and commissions generated by the Division
were significantly lower than in the same period of the previous year. The
cost/income ratio rose slightly, to 37.8 per cent (Q1 2011: 34.4 per cent).
The CEE Division generated a profit before tax of EUR 367 million for the
first quarter of 2012, an increase of about 4 per cent over the same period
of the previous year (Q1 2011: EUR 353 million). At constant exchange
rates, profit before tax rose by 8.8 per cent. Contributions to this
favourable trend came from a sound operating performance in customer
business, from strict cost discipline and from the fact that net
write-downs of loans and provisions for guarantees and commitments
continued to decline significantly, by 20.1 per cent. The cost/income ratio
rose slightly, to 47.9 per cent (Q1 2011: 45.9 per cent).
Bank Austria is UniCredit's sub-holding company for operations in Central
and Eastern Europe (CEE), managing the leading banking network in CEE with
over 51,100 employees and about 2,750 branches in 18 countries. During the
first quarter the CEE region benefited from improving risk appetite toward
emerging markets which were primarily supported by the ECB's liquidity
injections. Despite the improving market sentiment the economic cycle is
still pointing toward a slowdown with PMIs slightly deteriorating and
export dynamics continuing to slow down. Political noise from several EMU
countries could weigh on risk appetite and in turn will likely see
relatively soft economic performance in the second quarter as well.
Overall, UniCredit's analysts expect the CEE-16 region's economy to grow by
3.4 per cent in 2012 as a whole.
'The banking market in many CEE countries got off to a good start in 2012.
Favourable developments should be seen especially in large countries such
as Russia and Turkey this year,' says Gianni Franco Papa, Deputy CEO and
Head of the CEE Division of Bank Austria. 'It is in these markets that we
will concentrate on further business expansion and investment. From a
current perspective, the major risk in this context is the stream of new
national regulations, which needs more European coordination.'
Financial position
Bank Austria's total assets as at 31 March 2012 were EUR 200.9 billion, up
by EUR 1.6 billion from the end of the previous year (31 December 2011: EUR
199.2 billion). On the assets side, loans and receivables with customers
amounted to EUR 133.4 billion (31 December 2011: EUR 134.9 billion) and
loans and receivables with banks totalled EUR 27.1 billion (31 December
2011: EUR 25.6 billion).
On the liabilities side, deposits from customers increased slightly, to EUR
105.4 billion (31 December 2011: EUR 104.7 billion) and debt securities in
issue rose to EUR 30.3 billion (31 December 2011: EUR 29.9 billion).
Primary funds - the sum total of deposits from customers and debt
securities in issue, i.e. funding from commercial banking sources -
amounted to EUR 135.7 billion or 67.5 per cent of total liabilities and
equity. This means that customer loans were covered by primary funds to the
extent of 101.7 per cent.
There were only slight changes in capital ratios from year-end 2011 to 31
March 2012. The Tier 1 capital ratio based on all risks was 10.72 per cent
(31 December 2011: 10.88 per cent) and the Core Tier 1 capital ratio
(excluding hybrid capital) based on all risks was 10.50 per cent (31
December 2011: 10.55 per cent).
Staff numbers in the Bank Austria Group including the employees of
UniCredit's subsidiaries (Footnote 2) in Austria totalled 61,662 (full-time
equivalents) as at 31 March 2012 (31 March 2011: 62,128 FTEs). Of this
total, 10,594 FTEs were employed in Austria and 51,068 FTEs in CEE
countries.
Footnote 1: Leverage ratio = total assets less intangible assets / equity
less intangible assets
Footnote 2: Administration Services / UniCredit Business Partner, BAGIS,
WAVE (which are now integrated in UBIS); UniCredit Leasing, Pioneer
Investments Austria and UniCredit CAIB were transferred on an intra-group
basis.
in Euro mn Q1 Q2 Q3 Q4 Q1 Change over Change overn.m. = not meaningful
2- 2- 2- 2- 2- previous year previous year
011 011 011 011 012 in Euro mn in %
1, 1, 1, 1, 1,
Net interest 128 121 128 120 105 -23 -2%
Dividend income
and other
income
from equity
investments 50 52 49 56 30 -21 -41%
Net fees and
commissions 413 406 424 433 383 -29 -7%
Net trading,
hedging and
fair value
income 164 108 79 121 293 130 79%
Net other
expenses/income 29 38 38 -7 0 -29 -100%
Operating 1, 1, 1, 1, 1,
Income 783 725 717 723 811 28 2%
- - - - -
Payroll costs 488 504 499 494 500 -12 2%
Other
administrative - - - - -
expenses 380 401 390 444 394 -14 4%
Recovery of
expenses 0 0 1 1 0 0 68%
Amortisation,
depreciation
and
impairment
losses on
intangible and
tangible assets -66 -67 -69 -68 -68 -3 4%
-
- - - 1, -
Operating costs 934 972 957 005 961 -28 3%
Operating
profit 849 753 761 718 850 1 0%
Net write-downs
of loans and
provisions
for
guarantees/ - - - - -
commitments 376 329 330 317 284 92 -24%
NET OPERATING
PROFIT 473 424 431 401 566 93 20%
Provisions for
risks and -
charges -32 1 100 -5 -8 24 -75%
Integration
costs -1 -1 -15 -11 0 1 -101%
Net income from - -
investments 8 -37 118 130 -31 -39 n.a.
PROFIT BEFORE
TAX 448 387 197 256 527 79 18%
Income tax for - -
the period -89 -24 141 -7 110 -21 24%
Profit for the
period 360 364 57 249 417 57 16%
Non-controlling
interests -13 -12 -16 -9 -10 3 -26%
NET PROFIT
ATTRIBUTABLE TO
THE
OWNERS OF BANK
AUSTRIA BEFORE
PPA 346 352 41 240 407 61 18%
Purchase Price
Allocation
effect-4 -3 -24 -4 -4 0 -2%
Goodwill -
impairment -3 -50 653 -32 -4 -2 73%
NET PROFIT
ATTRIBUTABLE TO
THE
OWNERS OF BANK
AUSTRIA - -
RECAST 340 298 635 204 399 59 17%
NET PROFIT
ATTRIBUTABLE TO
THE OWNERS
OF BANK AUSTRIA -
- AS PUBLISHED 341 299 635 204 399 58 17%
Notes:
1- Bank Austria's income statement as presented in this table is a
reclassified format corresponding to the format used for segment
reporting.
2- 2011 recast: The comparative figures for 2011 have been recast to
reflect the current consolidation perimeter and methodology. This
provides a consistent basis for comparison.
3- Purchase Price Allocation (PPA) effects for Kazakhstan, Ukraine, Russia
and Aton.
in Euro bn 31.12.2011 31.03.2012Issuer:
Total assets 199.2 200.9
Equity 17.7 18.6
UniCredit Bank Austria AG
Schottengasse 6-8, 1010 Vienna, Austria
e-mail: investor.relations(at)unicreditgroup.at
Internet: http://ir.bankaustria.at
Largest bonds by volume issued:
ISIN: Stock exchanges:
XS0343689377 Luxemburg
XS0372532514 Luxemburg
XS0379307258 Luxemburg
AT000B048988 Vienna
AT000B049010 Vienna
Further stock exchanges where bonds are admitted to listing:
Frankfurt, Stuttgart, Paris, Zurich, Munich
Contact:
Günther Stromenger
Corporate Relations - Bank Austria
phone: +43 (0) 50505 - 57232
e-mail: guenther.stromenger(at)unicreditgroup.at
End of Corporate News
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Language: English
Company: UniCredit Bank Austria AG
Schottengasse 6 - 8
1010 Wien
Austria
Phone: 0043 (0) 50505 - 57232
Fax: 0043 (0) 50505 - 8957232
E-mail: investor.relations(at)unicreditgroup.at
Internet: www.bankaustria.at
ISIN: AT0000995006
WKN: 99500
Listed: Foreign Exchange(s) Luxembourg, Wien (Amtlicher Handel /
Official Market)
End of News DGAP News-Service
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Datum: 10.05.2012 - 14:31 Uhr
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