BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft
EANS-News: BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft /
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Capital measures/Redemption Participation Capital
Wien (euro adhoc) - Vienna, 13 March 2014
BAWAG P.S.K. announces the full early redemption of its remaining EUR 350
million participation capital held by the Republic of Austria
o Full redemption following the Bank's strategic actions to further
strengthen its capital position and the successful reduction of non-core
assets and other de-risking measures
o Transaction to be completed on March 14, and results in EUR 784 million
in total payments to the Republic of Austria, including dividends since
2009.
Over the last years BAWAG P.S.K. has taken numerous measures to improve its
capital base, i.e.
o Stabilising and growing organic earnings, leading to combined net profits
of EUR 336 million in 2012 and 2013
o Successful execution of strategic plan to exit non core businesses and
assets resulted in reduction of risk weighted assets overall by EUR 7.2
billion or 31% over the course of 2012 and 2013
o Common equity capital contribution by shareholders of EUR 200 million at
the end of 2012 and further EUR 125 million in March 2014
o Successful issuance of EUR 343 million of Basel 3 compliant Tier 2
capital in institutional and retail placements in the 4th quarter 2013
In March and December 2013 the Bank already redeemed a total of EUR 200 million
out of the EUR 550 million issued participation capital subscribed by the
Republic of Austria in 2009.
The entire early redemption of the remaining participation capital outstanding
in the amount of EUR 350 million is based on the resolution of the
shareholders' meeting as of March 12th, 2014. The Austrian Financial Market
Authority (FMA) has also granted approval for the redemption of the remaining
participation capital.
Since the issuance of the participation capital in 2009, the Bank's total
payment to the Republic of Austria will be EUR 784 million after the entire
early redemption of the remaining amount, thereof dividend payments of EUR 234
million. These amounts include all dividend payments with a coupon of 9.3% each
year and the payment for 2014.
Byron Haynes, CEO of BAWAG P.S.K. comments: "This full early redemption of
participation capital reflects the significant and successful strengthening of
the capital position of BAWAG P.S.K. over the last years through the reduction
of non-core assets, de-risking activities and core earnings growth. A solid
capital position remains the cornerstone of our strategic and operational
plans.
At the same time, we continuously invest in our core retail and corporate
franchises while also addressing the necessary cost restructuring actions which
allow the Bank to be competitive on a sustainable basis in a challenging
environment.
On behalf of BAWAG P.S.K. I would like to thank the Republic of Austria and the
Austrian tax payers and citizens who entrusted us with capital over the last
years as we took proactive actions to materially strengthen the Bank, invest in
our core business and provide leading products and services to our customers
across Austria."
Further inquiry note:
Mag. Sabine Hacker, Konzernpressesprecherin
T: 05 99 05 - 31210
e-mail: sabine.hacker@bawagpsk.com
end of announcement euro adhoc
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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