EANS-News: BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft / Consolidated Interim Reüort Q3 2014 (with document)

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9-month report

BAWAG P.S.K. reports first nine months 2014 net profit
of EUR 264 million, +69%

· Net profit EUR 264 million, +69% from Q3 2013 YTD
· Core revenues EUR 659 million, +18%
· Cost-income ratio down to 52.1%, down 12.9pts
· Business net interest margin improved by 27bps to 2.27%
· Highly favorable AQR and stress test results for BAWAG P.S.K.
· CET1 ratio (fully loaded) at 11.5%, up 2.1pts since year-end 2013
· Full year targets on track

VIENNA, Austria - November 10, 2014 - BAWAG P.S.K. today reported net
profit of EUR 264 million for the first three quarters of 2014, up
69% versus prior year. The increase was driven by strength in our
core franchises. Annualized return on equity was 15.9%, up 5.0pts.
Net interest margin improved 45bps to 1.89% with business net
interest margin up 27bps. Operating expenses were down 20% and risk
costs down 26%. Overall performance in the first three quarters
reiterates that BAWAG P.S.K.'s historical transformation was
successful in positioning it to produce strong results in 2014 and
beyond.

"As we completed the third quarter, we continued to see strong
momentum across our business lines. The Bank is well positioned today
and is consistently producing strong results quarter after quarter.
Year to date, our net profit was EUR 264 million, up 69% versus prior
year. This reiterates BAWAG P.S.K. being well prepared to
successfully win in a competitive and evolving European banking
market", said Chief Executive OfficerByron Haynes. "We are proud of
our results and accomplishments. We expect this momentum to continue
through the end of 2014 and into 2015."

In addition, on October 26 the ECB disclosed the results of its
comprehensive assessment of 130 European banks. BAWAG P.S.K. was
successful in passing the EBA's stress test with CET 1 ratios of
11.9% for the baseline scenario and 8.5% for the adverse scenario.
Both results were at least 50% higher than the minimum targets set by
the ECB. As a result of the asset quality review, BAWAG P.S.K. had a
21bps adjustment which was significantly lower than the Austrian peer
average of 95bps.

Key Business Highlights

BAWAG P.S.K. continued to successfully execute on its business plans
in the first three quarters while maintaining a focus on providing
competitive and innovative products to its customers. The Bank also
further improved its cost structure and continued to strengthen its
capital base.

Retail Banking and Small Business was a key driver for the Bank's
strong results. Core revenues increased by 14% driven by positive
developments in NII and NCI, up 16% and 10% respectively. Consumer
loan volume successfully grew by 11% to EUR 1.93 billion in a
shrinking Austrian market. Our market share increased to 9%, up
100bps since year-end 2013. Funding costs continue to decrease as we
focus on reducing our non-core funding, re-pricing initiatives and
shifting our deposit mix. The direct banking subsidiary easybank
continued its strong performance opening 35,000 new customer accounts
in the first nine months 2014.

Corporate Lending and Investments continued to strengthen its
operating leverage by reducing its operating expenses by 16%.
Austrian corporate new lending volumes rose by 34% versus the first
three quarters 2013. The new business volume in our core
international business of EUR 2.7 billion reflected a mix of
investment grade security purchases combined with a continued
portfolio diversification. Low risk costs of EUR 21 million and a NPL
ratio of 1.87% for the first nine months 2014 in this segment reflect
positive impacts from our de- risking actions of the previous
periods.

Treasury Services and Markets reported net interest income up 3%,
operating income up 24% and a decrease of operating expenses of 41%
due to an improved operating efficiency. Selective new investments
and strategic sales supported the segment's strong performance. The
total investment portfolio amounted to EUR 5.8 billion with an
average duration of 3.8 years. 100% of the securities are investment
grade, of which 85% were rated single A or higher. The geographic mix
of the portfolio is quite diverse with no direct exposure to Russia,
CIS, Hungary or South-Eastern Europe in the securities portfolio.

For charts please refer to the attached PDF-document.

About BAWAG P.S.K.

BAWAG P.S.K. is one of Austria's largest retail banking institutions
with 1.6 million customers and a well recognized national brand. The
Bank focuses on three business segments: Retail Banking and Small
Business include lending, savings, payment, card, investment and
insurance services for private and small business customers. Austrian
corporate lending activities and other fee-driven financial services
as well as international activities are managed within the Corporate
Lending and Investments segment. The majority of the Bank's lending
activities are within Austria. The international business is focused
on corporate and commercial real estate financing primarily in
Western Europe. Treasury Services and Markets includes all activities
associated with providing trading and investment services for the
Group's treasury activities and the management of the Bank's
portfolio of financial securities.

BAWAG P.S.K.'s target is a capital efficient, low risk and low
leverage business model while being the most efficient, centrally
managed bank across Austria. Delivering competitive, transparent and
simple products and services to our customers is the core of our
strategy.

BAWAG P.S.K.'s Investor Relations
websitehttp://www.bawagpsk.com/BAWAGPSK/IR/ ENcontains further
information about the Bank, including financial and other information
for investors.

Attachments with Announcement:
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http://resources.euroadhoc.com/us/T6Kx6cUr
http://resources.euroadhoc.com/us/NFqEe1LD

Further inquiry note:
Financial Community:
Sat Shah (Chief Administrative & Strategy Officer)
Tel: +43 (0) 5 99 05- 33050
E-mail:investor.relations@bawagpsk.com

Media:
Sabine Hacker (Head of Communications)
Tel: +43 (0) 5 99 05-31210
E-mail: presse@bawagpsk.com e-mail: presse@bawagpsk.com

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/T6Kx6cUr
http://resources.euroadhoc.com/us/NFqEe1LD

company: BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft
Georg-Coch-Platz 2
A-1018 Wien
phone: +43 (0) 59905
mail: bawagpsk@bawagpsk.com
WWW: www.bawagpsk.com
sector: Banking
ISIN: -
indexes:
stockmarkets: stock market: Luxembourg Stock Exchange, Euronext Amsterdam,
Frankfurt, Wien, SIX Swiss Exchange
language: English