0706 Bank Austria - Investor Presentation 1Q15 EN · Bank Austria – at a glance Bank Austria Highlights as of 31 March 2015 Member of UniCredit since 2005 Leading corporate bank

Bank Austria

Vienna, July 2015

Presentation to Fixed Income Investors

2

Agenda

Overview Bank Austria

Profit & Loss

Liquidity & Funding

Funding Strategy & Position

Balance Sheet & Capital Ratios

Business Model & Strategy

Transactions

Annex

Cover Pool

Bank Austria – at a glance

Bank Austria Highlights as of 31 March 2015

Member of UniCreditsince 2005

Leading corporate bankand one of the largestretail banks in Austria

~ 7,000 FTE and about240 branches in Austria

Management of theleading banking networkin CEE in 13 countries

~ 29,000 FTE and about1,400 branches in fullCEE subsidiaries1)

Solid capital base (10.2%CET1 Ratio)

Stable liquidity with aperfect balance betweencustomer loans and directfunding

1) plus a further 19,000 FTE and ~ 1,000 branches in Turkey (the 41%-stake now being consolidated at equity)2) Capital ratios based on all risks; Basel 3 (transitional) and IFRSs; end of period.

3/15 12/14

Total Assets 195.1 189.1

Customer Loans 117.5 113.7

Direct Funding 136.3 132.3

Equity 15.7 14.9

In € bn

1Q15 1Q14

Operating income 1,383 1,413

Operating costs -751 -772

LLP -210 -208

Net profit 198 348

In € mn

RoE after tax 5.7%

Cost / income ratio 54.3%

CET1 capital ratio2) 10.2%

Total capital ratio2) 13.7%

Non-performing exposureratio

4.4%

Coverage ratio 54.7%

Cost of risk 73bp

3

S&P BBB A-2

Moody’s Baa2 P-2

Fitch BBB+ F2

Market share loans /deposits Austria

15% / 14%

Market share loans /deposits CEE

6% / 6%

4

Business Model and Market Position in Bank Austria‘sHome Market

Bank Austria is one of the strongest banks in Austria:

CIB = Corporate & Investment Banking

CIB

Leading corporate bank in

the country (7 of 10 large

corporates are clients)

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

- Real Estate

- Public Sector (excluding

Republic of Austria)

Broad coverage through a

network of approx. 240

branches, offering its

customers a complete

range of high-quality

products

12% market share in loans

to individual customers

Strong market position in

all corporate segments

Private Banking

26% 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

5

Bank Austria‘s Market Shares1) in the Domestic Customer Business(as of March 2015)

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

Very efficient network structure to cover the important size of customer sharewith only 5% of all bank branches in Austria

16.3%

16.0%

22.7%

27.5%

14.4%

10.4%

14.6%

12.5%

12.4%

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

Economic Conditions in Austria

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

forecast

6

Employment and unemployment rate

2,3

1,5

2,2

3,2

0,5

1,9

3,3

2,4

2,0

1,7

1,2

1,6

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 2016

2,1

3,43,6

1,5

-3,8

1,9

3,1

0,9

0,20,3

0,9

1,5

-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 2016

forecast

Hopes of perceptible economic growth in 2014 were

dashed by faltering support from growth markets andthe Ukraine conflict with Russia. Austria’s economygrew by an insignificant 0.3% in 2014 as a whole

There are at least five good reasons why 2015 will bebetter than 2014: The modest increase in globaldemand, supported by the weaker euro and lower oil

prices, and fiscal and monetary impetus in the pipeline

The sharp fall in oil prices will significantly curbthe inflationary trend in Austria also in 2015, while

the economy still lacks the impetus for an improvementon the labor market. 2015 will probably see a furtherrise in unemployment in Austria to 5.7 %

3000

3100

3200

3300

3400

3500

3600

3700

0

1

2

3

4

5

6

7

8

9

10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Employment excl. persons drawing maternity benefits, military service andtraining (1000s, SA) - RS

Unemployment rate (%, SA) - LS

7

Cross-country breakdownReal GDP growth, %

Economic growth in CESEE to continue on its recovery path,while the whole CEE region is set to pick up from 2016

-8

-6

-4

-2

0

2

4

6

8

10

2016F

2.5

1.1

2.2

-0.7

2.1

1.2

201320092005

0

-1

-2

-3

-4

-10

4

3

2

1

TR

3.6

BH

3.5

SK

3.2

CZ

2.7

SI

2.6

RO

2.5

HU

2.4

BG

2.3

UA

1.6

RS

1.3

HR

0.8

RU

-1.4

2016F2015FCESEECEE

CEE: BG: Bulgaria, BH: Bosnia and Herzegovina, CZ: Czech Republic, HR: Croatia, HU: Hungary, RO: Romania,RS: Serbia, RU: Russia, SI: Slovenia, SK: Slovak Republic, TR: Turkey, UA: Ukraine;CESEE: CEE excluding Russia, Turkey, Ukraine

Source: UniCredit Research, UniCredit CEE Strategic Analysis

Data as ofFY 2014

OTP

ISP

SocGen

UniCredit

(5)

Note: (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 andbefore minorities; (3) Including direct and indirect presence in the 25 CEE countries, excluding representative offices; (4) including branches in Turkey at 100%; (5)Results of RBI exclude group corporate, markets and corporate center segments; (6) BG, HR, MG, MD and MC as of FY2013 since 1H 2014 data not available; (7)As of 1H14; (8) Excluding BG, HR, MG, MD and MC. Rest of the countries as per 1H14.

Source: UniCredit CEE Strategic Analysis

Countries ofpresence (3)

Total Assets (1)

EUR bnNumber ofBranches

116 19

CEE, % share inGroup revenues

33

37

57

73

77

80

142

Net Profit (2)

EUR mn

(6)

(7)

156

79

75

73

57

37

35

(6)

1.361

252

-257

353

525

-53

-331

(7)

3.499

2.852

1.828

2.494

761

1.204

1.421

(7)

14

17

6

15

4

10

9

(7)

25

81

53

14

29

10

n.m.

(8)

(4)

UniCredit: leadership in CEE

8

9

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

~ € 80 bn Direct funding (Primary

funds = Deposits from customers +

Debt securities in issue)

~2,400 branches*) and ~47,000 FTE *)

Within top 5 in 11 Countries

*) excl. ~1,000 branches and ~19,000 FTE of Turkish Joint Venture

RankingMarket

Share

Total

Assets

(€ mn)

Customer

Loans

(€ mn)

Primary

Funds

(€ mn)

Branches

Poland 2 11% 40,027 28,798 30,670 1,023

Russia 9 2% 20,870 13,242 13,321 103

Czech Republic 4 9% 19,503 12,664 13,740 182

Slovakia 5 7% - - - -

Croatia 1 26% 14,400 9,789 8,918 135

Bulgaria 1 17% 8,489 5,160 5,802 200

Romania 5 8% 7,091 4,630 3,288 183

Hungary 3 8% 7,320 3,269 3,816 85

Ukraine ("held for sale") 6 4% - - - 272

Slovenia 5 7% 2,810 1,975 1,647 30

Bosnia & Herzegovina 1 22% 2,659 1,726 1,890 120

Serbia 3 9% 2,457 1,485 1,225 71

at equity consolidated

Turkey 5 10% 31,474 21,004 19,774 1,050

o/w Azerbaijan 10 2% 163 120 96 14

Rep. Offices

Belarus

Macedonia

Montenegro

CEE Division (excl. Turkey, excl. Ukraine) 91,464 59,081 53,777 2,453

CEE Region (excl. Turkey, excl. Ukraine) 131,491 87,878 84,447 3,476

Note: Data as of 31 March 2015, ranking and market share as of 31 December 2014

Poland (Bank Pekao) under management of UniCredit

Since 1 Dec. 2013, foreign branch of UniCredit Bank Czech Republic and Slovakia

Turkey consolidated at equity as from 2014

Representative Office of UniCredit Russia

incl. Turkey, incl. Ukraine

2)

3)

4)

5)

1)

5)

4)

3)

2)

1)

5)

10

Turkey and Ukraine shown separately as

Yapi Kredi (Turkish Joint-Venture) consolidated at equity since 2014

Ukrsotsbank (Ukraine) reclassified to “Held for Sale”

CEE Division1) – incl. Details on Turkey and Ukraine(as of 31 March 2015)

1) excl. Poland (under direct management of UniCredit)2) Primary funds (= Direct Funding) = Deposits from Customers + Debt Securities in Issue

11.7% 5.8%

9.3% 5.3%

Market Share CEE Division – Customer Loans

Market Share CEE Division – Customer Deposits

Excl. Russia Incl. Russia

Excl. Russia Incl. Russia

(€ mn)

Loans to Customers 58.100 21.001 1.650

Primary Funds2) 53.810 19.355 947

CEE(excl. TR, UA)

Turkey(at 40.9%)

Ukraine

▪ Reinforcing business refocusing through:

− Country portfolio optimization, targeting leadership position, increasing profitabilityand volumes market share with attention to risk awareness

− Discipline and execution

− Focus on efficiency

− Leveraging on presence in CEE as added value for the Group

▪ Boost value creation of corporate portfolio through:

− Enhancement of service model (targeting “capital light” approach) on a value baselogic, strengthening cross-selling and pricing capabilities

− Increase penetration and customer base on most attractive sub-segments thanks tofocus on SME and internationalization program

▪ Profound business model transformation, enabled by investments in infrastructure, toquickly boost profit generation through:

RetailTransformation

− Simplification of operating model to free-up resources

− Service model revision to enhance productivity

− Extensive leverage of digital and multi-channels

− Further increase customer base

Balancedgrowth

ReinforcingLeadershipin Corporate

To support the strategic ambition of CEE Division, a large-scaleprogram has been launched, targeting transformation and improvedprofitability in key areas

11

CEE keeps focus on portfolio optimization, targeting balanced growthand efficiency

Sale of ATF Bank

Sale of Yapi Kredi Sigorta

Merger of UCB CZ and UCB SK Acquisition of AXA retail portfolio (CZ) Acquisition of Transfinance a.s. (CZ)*

Wind-down of bank activities andmerger with UC Leasing Latvia*

JV with Renault,Nissan and Infiniti

Sale of MICEX

Retail portfolio acquisition (RBS) Corporate portfolio acquisition (RBS)* Purchase of stake held by Tiriac Holdings

Merger of UniCredit Bank Ukraineand Ukrsotsbank

CAIBs Integration of CAIBs completed*

UCIFIN Integration in RO, BG completed

Leasings Transfer in 2014/15**

CEEregion

12

Further achievements 2014: Turkey: Successful branch expansion Hungary: Solid profitability maintained (unlike most competitors)

Sale ofIstratourist*

* completed in 2014

** ongoing

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

Strategic repositioning

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

meeting everyday financial needs

Permanent presence for banking transactions to meet everydayneeds

Advisory bank Specialists offer various customer groups

highly-qualified advisory services at branchesand via SmartBanking

Leading multi-channel bank

With the “Online-Konto“ (online account), BankAustria creates the first online bank withpersonal advisory services and the productrange of a truly universal bank

13

14

SmartBanking – the bank of the future is smart & multi-channel-oriented

10,000 new customers since start of the project, SmartBanking for all 1.6 mn customers

On average, 800 to 1,000 advisory talks via videotelephony per month, furthermore, customerscontact the bank via phone, e-mail, messages via the communication center in OnlineBanking, viaSMS, MobileBanking, etc. – significant increase of new business

Offer open to all customers of Bank Austria with a minimum age of 14 years

Approx. 100 staff in SmartBanking

High customer satisfaction

The customers appreciate the innovative approach, the comfort to be able to communicatewith their personal relationship manager anywhere and anytime, and in general the prolongedservice hours, availability of the whole product range and the whole branch network ofBank Austria, i.e. a clear differentiation to pure online banks

Trendsetting appsincluding ATM finder, importing and generating ofQR codes and full support for all tablets

SmartBanking, together with the new branches, formsthe new service model, allowing the customerto choose how, where and when he/she wants to getin contact with Bank Austria

15

Rating Overview

1) Subordinated (Lower Tier II)2) Securities issued before 31 Dec. 2001 which benefit from a secondary liability by the City of Vienna (grandfathered debt) are also rated as shown

above

1) 1) 1)

2)

(as of 6 July 2015)

Long-Term Short-Term Subordinated Long-Term Short-Term Subordinated Long-Term Short-Term Subordinated

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

Stable Negative Stable

Baa1 P-2 Ba2 BBB- A-3 BB BBB+ F2 BBB

Stable Stable Stable

Public Sector

Covered Bond

Mortgage Covered

BondAaa - -

Aaa - -

UniCredit S.p.A.

Moody's S&P Fitch

Bank Austria

16

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

P&L of Bank Austria – FY14Stable operating income (decrease mainly due to high one-offs in 2013)Operative improvement mainly due to lower net write-downs of loans

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

Operating income y/y down by 9%, mainly due to lower equity contribution from Turkey (due to sale of Sigorta

insurance in 3Q13) and decreased trading income (MICEX-sale 4Q13)

Costs slightly lower vs. FY13, driven by strict cost management and despite further increase in Austrian bank levy

Net write-downs of loans significantly lower (-47% y/y), decrease both in Austria and in CEE

Group Net Profit at € 1,383 mn, last year’s result was impacted by the total write-off of goodwill and other special

factors

1-12 1-12(€ mn) 2014 2013

Operating Income 5,890 6,503 -9.4% 1,429 1,554 1,715 -8.1%

Operating Costs -3,336 -3,387 -1.5% -865 -814 -895 6.3%

Operating Profit 2,554 3,116 -18.1% 563 740 820 -23.9%

Net Write-Downs of Loans -693 -1,313 -47.2% -192 -169 -536 13.7%

Net Operating Profit 1,860 1,803 3.2% 371 571 284 -35.0%

Non-Operating Items -82 -1,006 -91.8% -15 -84 -848 -81.5%

Profit Before Tax 1,778 797 >100.0% 356 487 -564 -27.0%

Income Tax -287 -428 -33.0% -87 -73 -245 18.8%

Group Net Profit 1,383 -1,542 >-100.0% 191 416 -2,667 -54.2%

Cost / Income Ratio - excl. bank levies (in %) 53.9% 49.9% 400 bp 58.3% 50.1% 50.5% 819 bp

y/y 4Q14 3Q14 4Q13 q/q

17

P&L of Bank Austria – 1Q15Stable operating profits – trend confirmed

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

Operating income slightly down, mainly due to low interest environment in Austria, currency effects and expiry of

profit contribution in UniCredit Markets Division (part of the intra-group sale of CAIB in 2010) at the end of 2014

Costs significantly lower vs. 2014, driven by strict cost management and currency effects

Net write-downs of loans stable, low requirements in particular in Austria

Non-operating items increase due to higher systemic charges (including first-time contribution to Austrian resolution

fund following BRRD implementation in Austria already in 201518

(€ mn)

Operating Income 1.383 1.442 1.413 -4,1% -2,1%

Operating Costs -751 -821 -772 -8,6% -2,8%

Operating Profit 632 621 641 1,7% -1,3%

Net Write-Downs of Loans -210 -249 -208 -15,6% 1,1%

Net Operating Profit 422 373 433 13,3% -2,5%

Non-Operating Items -112 -68 -13 63,8% >100.0%

Profit Before Tax 311 305 420 1,9% -26,1%

Income Tax -60 -88 -66 -31,4% -9,2%

Group Net Profit 198 139 348 42,6% -43,2%

Cost / Income Ratio (in %) 54,3% 56,9% 54,7% -263 bp -37 bp

1Q15 4Q14 1Q14 q/q y/y

19

Net Operating Profit Composition (€ mn)

-208-249

-210

-772

1Q15

422

4Q14

1,383

-751

373

-821

1,442

1Q14

433

1,413

Net Operating ProfitBank Austria confirms profitability, with CEE as main contributor

LLP

Costs

Operating income

433 422

-208

1,383

-210

1,413

-772 -751

1-3/20151-3/2014

22%

Austria

CEE

78%

*) without Corporate Center

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

NOP slightly down y/y (-3%)

Reduction of revenues y/y due to low interest

environment in Austria, currency effects (mainly

Russian Ruble) and expiry of profit contribution in

UniCredit Markets Division

Y/y and also q/q, decrease in costs due to strict cost

control (in particular lower staff costs) and currency

effects

LLP stable, with Austria still at very low levels

20

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

62 45 35

146203

175

1Q15

210

4Q14

249

1Q14

208

119

-3

13

68

122

25

27

73

CEE

CIB

CommercialBanking

BA Group

1-3/2015FY14

Loan Loss Provisions and Cost of RiskLLPs and Cost of Risk stable

3562

208

1-3/2015

+1%

210

1-3/2014

146175

LLPs: stable y/y, with a decrease in Austria (in particular Corporates) and higher in CEE, due to

Russia

Cost of risk on FY14 level (BA Group at 73 bps vs. FY14 with 68 bps), with

Commercial Banking (i.e. the Austrian customer business) and CIB again at low levels

(increase vs. FY14 due to larger write-backs/releases in previous year)

CEE stable

AustriaCEE

21

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 QualitySlight worsening of AQ ratios in 1Q15

Net impaired loans up

in 1Q15, driven by an

increase in Russia (but

with an overall still very

good asset quality in

Russia). Austria and

most CEE countries

stable

Net impaired loan ratio

almost stable,

impacted by the same

developments

Coverage ratio on

impaired loans slightly

reduced y/y by

29 bp. Improvement in

Austria, CEE

somewhat lower (again

partly driven by Russia)

5.2

4Q14

4.9

1Q14

5.0

+4%

1Q15

+4bp

1Q15

4,4%

4Q14

4,3%

1Q14

4,3%

-29bp

1Q15

54.7%

4Q14

55.4%

1Q14

55.0%

-6%

1Q15

1.3

4Q14

1.3

1Q14

1.4

-12bp

1Q15

2.2%

4Q14

2.2%

1Q14

2.3%

+151bp

1Q15

64.2%

4Q14

64.5%

1Q14

62.6%

+8%

1Q15

3.9

4Q14

3.7

1Q14

3.6

3bp

1Q15

6.6%

4Q14

6.5%

1Q14

6.6% 50.4%

4Q14

51.2%

1Q14

51.2%

-81bp

1Q15

BA Group

Austria

BA GroupBA Group

AustriaAustria

CEE CEECEE

CEE Division increases profit before tax by 29 per cent atconstant exchange rates

Profit before tax up by 29% y/y

(at constant rates while +19% at

current rates) based on

substantially higher revenues

(+17%), strict cost management

and despite higher loan loss

provisions

Strong improvement in most

countries

Within a difficult environment,

Russia confirmed as important

profit contributor

Turkey up based on strong

revenue performance

Excellent results in SEE despite

challenging economic

environment

Significantly higher profits also in

all countries in Central Europe

Hungary

Slovenia 4

20

CZ/SK 76

CE 100

Bosnia 14

Serbia 16

Romania 22

Croatia 63

Bulgaria 48

SEE 163

Turkey 70

Russia 79

CEE 390

22 1) Turkey consolidated at equity, therefore incl. in CEE total with net profit of € 70 mn. The proportionate profit before tax amounts to € 88 mn.

1)

5%

6%

39%

40%

29%

72%

93%

35%

58%

28%

-1%

n.m.

n.m.

1)

Profit before tax 1-3 2015in EUR mn - change y/y in % (at constant exchange rates)

23

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

Other Assets

OtherFinancial Assets

Loans andreceivableswith customers

Loansand receivableswith banks

Assets

195,009 (100%)

12,137 (6%)

35,265 (18%)

117,511 (60%)

30,096 (15%)

Equity

Other Liabilities

Debt securitiesin issue

Deposits fromcustomers

Deposits frombanks

Liabilities

195,009 (100%)

15,740 (8%)

19,279 (10%)

30,100 (15%)

106,150 (54%)

23,739 (12%)

Balance Sheet structure (as at 31 March 2015)

Balance Sheet (€ mn) Change vs. 31 December 2014

+3.1%

03/15

195

12/14

189

Balance sheet Loans to customers

+3.3%

03/15

118

12/14

114

Deposits fromcustomers

Securitiesin issue

+3.8%

03/15

106

12/14

102

+0.3%

03/15

30

12/14

30

(€ bn)

+5.5%

03/15

16

12/14

15

03/15

5.6%

12/14

5.6%

Shareholders’equity

Leverage ratio Balance sheet development (+3.1%% vs. YE14) partly driven by strong deposit

growth and currency effects (appreciation of Ruble, USD, CHF)

Classical commercial bank - loans and primary funds (customer deposits + debt

securities in issue) well balanced and representing a high share in the balance sheet

Debt securities in issue stable q/q, following a successful covered bond issue

(€ 0.5 bn) and two Tier 2 issues (€ 0.75 bn) compensating for maturing bonds

Solid capital base of € 16 bn, 5% up vs. YE14

As from 2014, Turkey (Yapi Kredi) is consolidated at equity and therefore only included

as participation. Ukraine classified as held for sale (included in other assets/other

liabilities)24

25

Loans to Customers1) (€ mn)

+3%

+3%

1Q15

117,511

59,039

58,472

4Q14

113,732

57,353

56,378

3Q14

115,548

57,800

57,748

2Q14

115,680

58,553

57,127

1Q14

113,560

58,394

55,166

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

4Q14

11%+4%

102,256

53,460

48,796

3Q14

99,772

52,841

46,932

2Q14

95,725

50,312

45,414

1Q15

106,150

55,124

51,026

1Q14

95,605

51,041

44,564

Deposits from Customers1) (€ mn)

CEE

Austria

93% 86%92% 89% 86%

Loans/Direct Funding Ratio

1) All figures recast and excl. Turkey and Ukraine

Loans to customers +3% q/q largely due to currency effects: Austrian business driven by CHF appreciation, CEEbusiness by USD and Ruble appreciation in 1Q15

Deposits from customers with a +4% q/q, with strong growth in all Austrian business divisions while the increase inCEE is partly due to business growth (increases mainly in Croatia, Bulgaria and Slovenia) and also due to FXappreciation

Loans more than covered by deposits and debt securities in issue, Loans/Direct Funding Ratio on an excellentlevel of 86%

CEE

Austria

26

Customers loans / Direct Funding (€ bn) 1)

Volumes in CEEGood business development, impact from currency movements

Loans/Direct Funding: Also within CEE, ratio further improved y/y

to 109%

Regional Breakdown: well-balanced distribution of volumes, with

Russia and Czech Rep./Slovakia as largest banks. In a

proportionate view, equity-consolidated Turkey would be the largest

CEE bank (loans 21 bn, direct funding 19 bn)

Primary funds (€ bn) – March ‘15 1)

Customer loans (€ bn) – March ‘15

Regional Breakdown

1) Direct Funding = Deposits from customers + Debt securities in issue

1Q15

53.858.5

4Q14

51.556.4

1Q14

47.3

55.2

Direct FundingCustomer loans

Romania 5

Croatia 9

Bulgaria 5

Hungary 3

CZ/SK 13

Russia 13

o/w

CEE 58

3Romania

Croatia 9

Bulgaria 6

Hungary 4

CZ/SK 14

Russia 13

o/w

CEE 54

Regional Breakdown

109%117% 109%

Loans/Direct Funding Ratio CEE

113.0

12.1

4.6

2013

Credit risk

Operational risk

CVA charge

Market risk

1Q15 B3

137.8

118.3

12.1

0.76.7

2014

130.4

12.8

118.5

103.6

2.1

Risk-Weighted Assets (€ bn)

CET1

Tier 1

1Q15B3 phase-in

13.7%

10.2%

10.2%

2014

13.4%

10.3%

10.3%

2013

13.5%

11.3%

11.5%

Capital Ratios

1Q15B3 phase-in

CET1

Additional

Tier 1

18.9

14.1

0.0

2014

17.5

13.5

0.0

2013

13.4

0.3

16.0

Regulatory Capital (€ bn)

Total CAR

Total Capital Total RWA

1) Starting with 2014, figures in accordance with Basel 3/CRR and since 3Q14 based on IFRS; 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 10.2% and Total Capital ratio at 13.7%

(both according to Basel 3 phase-in and IFRS)

Safe capital base as Bank Austria – unlike its

main competitors – did not take up state capital

RWA development in FY14 influenced by

implementation of the CRR (leading to higher

market risk RWA in 2014), volume growth in CEE

and switch to IFRS. Increase in 1Q15 includes

CEE business growth and appreciation of some

currencies (CHF, USD, Ruble)

27

28

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

29

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

UniCredit S.p.A

(Baa1/BBB-/BBB+)

RLC Germany RLC Poland

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

Long-Term Ratings by (Moody’s/S&P/Fitch) as of 2 July 2015 *) Namensschuldverschreibungen

RLC Italy

UniCredit Bank AG

(A3/BBB/A-)

Bank Pekao SA

(A2/BBB+/A-)

UniCredit Bank

Austria AG

(Baa2/BBB/BBB+)

30

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

31

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

Constant prudent net liquidity reserve

inflows from market and captive customer

base

positive effect of cash pooling

Cash horizon constantly above 3M

Sound counterbalancing capacity

(approx. € 28bn on 1Y average)

32(1) 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 (steered centrally by ALM BA)

Structural liquidity ratio3) well above limits…

Internal rule of 0.90 for maturities above 1y

Level as of May 2015: 1.06, decreased vs the

previous month (1.09)

… thanks to

Stable Loan/Deposit ratio

2015 M/L Term Funding Plan positively

kicked off

0

10.000

20.000

30.000

40.000

50.000

60.000

30.0

9.1

0

30.1

1.1

0

31.0

1.1

1

31.0

3.1

1

31.0

5.1

1

31.0

7.1

1

30.0

9.1

1

30.1

1.1

1

31.0

1.1

2

31.0

3.1

2

31.0

5.1

2

31.0

7.1

2

30.0

9.1

2

30.1

1.1

2

31.0

1.1

3

31.0

3.1

3

31.0

5.1

3

31.0

7.1

3

30.0

9.1

3

30.1

1.1

3

31.0

1.1

4

31.0

3.1

4

31.0

5.1

4

31.0

7.1

4

30.0

9.1

4

30.1

1.1

4

31.0

1.1

5

31.0

3.1

5

31.0

5.1

5

0,880,890,900,910,920,930,940,950,960,970,980,991,001,011,021,031,041,051,061,071,081,091,10

Jan

-10

Ma

r-10

Ma

y-1

0

Jul-

10

Sep

-10

No

v-1

0

Jan

-11

Ma

r-11

Ma

y-1

1

Jul-

11

Sep

-11

No

v-1

1

Jan

-12

Ma

r-12

Ma

y-1

2

Jul-

12

Sep

-12

No

v-1

2

Jan

-13

Ma

r-13

Ma

y-1

3

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Ma

r-14

Ma

y-1

4

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Ma

r-15

Ma

y-1

5

1Y Liquidity Ratio

1Y Limit

33

Medium- & Long-Term Funding Development and Target 2015

Medium- & Long-Term Funding(in € bn)

Benchmark Issuances in 2014

and 2015:

Mortgage Pfandbrief

Benchmarks in January, April,

September 2014 and February

2015 successfully placed

Public Sector Pfandbrief

Benchmark in May 2014

successfully placed

Plan for 2015:

Benchmark Issues, Private

Placements and Issuance via

own Network of Covered

Bonds and Senior Bonds

3,18

4,63

2,10

3,79 3,854,08

2014 2015 Plan

o/w 0.5Pre-Funding

2015

2013

o/w 0.5Pre-Funding

2014

201220112010

Pfandbriefe€ 2.3 bn






34

Maturity Profile(in € mn)

Split of Instruments(in € mn)

4,687

12,746

8,322

Subordinated Bonds

Senior Bonds

CoveredBonds

Maturity Profile of Bank Austria’s Own Issues(as of 31 May 2015)

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

638

after 2019

9,924

4,604

1,537

3,783

2019

2,026

1,015

1,010

1

2018

2,215

865

1,350

0

20172016

139

5,238

3,467

2,690

834

4,244

160

2015

2,886

865

1,916

105

Covered Bonds

Senior Bonds

Subordinated Bonds

25,755Total

35

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

36

Overview of Pfandbrief Benchmark Issues 2015

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

Insurance companies

Central Banks/Official Institutions

4%

Funds

18%

Banks

30%

48%

OthersSwitzerland

UK

France

Asia

Austria

6%Germany

25%

52%

Bank AustriaMortgage Pfandbrief

0.75% 25/02/2025 € 500 mn Feb. 2015 MS + 3bps

3%

5%

3% 6%

37

Overview of Pfandbrief Benchmark Issues 2014 1/2

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

9%

6%

30%55%

Insurance companies

Central Banks

Funds

Banks

In April, successful issue of a long 5-year Mortgage Pfandbrief Benchmark

Insurance companies

Central Banks5%

Funds

12%

Banks

31%

52%

2%

Others

2%

Switzerland

3%

Italy

6%UK

France

Asia

9%

Austria

10%

Germany

21%

47%


2.375% 22/01/2024 € 500 mn Jan. 2014 MS + 35bps


1.25% 14/10/2019 € 500 mn April 2014 MS + 23bps

Benelux 11%

3%Italy 2%

2%

SpainAsiaSwitzerland

10%Nordics

6%

Austria

12%

Germany54%

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

Corporates

37%

Funds46%

3%

Insurance companies

4%

Central Banks 10%

Banks

UK

1%3%

Nordics/Benelux

3%

Others

3%

Italy

2%

France

Germany

71%

4%

Austria 10%

Switzerland

3%Asia

Bank AustriaPublic SectorPfandbrief

1.375% 26/05/2021 € 500 mn May 2014 MS + 25bps

In September, successful issue of long 5-year Mortgage Pfandbrief Benchmark

Banks62%

Insurance companies6%

Central Banks

4%

Funds 28%

UK/Ireland

7%Benelux

7%

6%Italy

4%

Nordics

Switzerland

3%Middle East

4%

Austria

France

2%

7%

Germany

56%

Others

4%


0.5% 16/01/2020 € 500 mn Sept. 2014 MS + 7bps

38

Overview of Pfandbrief Benchmark Issues 2014 2/2

39

Overview of Pfandbrief Benchmark Issues prior to 2014

Bank AustriaPublic Sector Pfandbrief

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 Apr 2012 Mid-Swap +88





1.25% € 500 mn July 2013 Mid-Swap +2630/07/2018

Bank AustriaMortgage Pfandbrief /First Tap

1.25% €200 mn Sept. 2013 Mid-Swap +1030/07/2018


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

Strong performance of all BA Covered Benchmark Bonds issued so far

40

Bank Austria Covered Bond Spread Comparison

Source: Bloomberg Mid ASW-Spread

41

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

Overview of Investors

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

Other

6%8%Insurances

Banks31%

Funds54%

42

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

Notice: TR = Turkey, RU = Russia, CZ = Czech Republic *) WAL = weighted average life

RU Senior Public Market 1 y€ 250 mln

equivalent RUBAug. 2014 10.30% MS + 65bps

TR Senior Public Market 5 y€ 362 mln

equivalent USDOct. 2014 5.125% MS + 357bps

TR Club Term Loan 1 y€ 1 bn

equivalent(USD 340 mln / €761mln)

Oct. 2014 floating MS + 80bps

TRDiversified Payment of

Rights (DPR)17 y WAL *

€ 362 mln

equivalent USDOct. 2014 floating MS + 211bps

RU Senior Public Market 1 y€ 96 mln

equivalent RUBNov. 2014 12.00% MS + 145bps

CZMortgage Covered

Bond4 y € 196 mln Dec. 2014 1.875% MS + 80bps

CZMortgage Covered

Bond8.5 y € 131.8 mln March 2015 floating MS + 48bps

CZMortgage Covered

Bond6 y € 234 mln March 2015 floating MS + 35bps

CZMortgage Covered

Bond5 y € 250 mln April 2015 floating MS + 45bps

TR Club Term Loan 1 y€ 1,26 bn

equivalent(USD 428 mln / €835 mln)

May 2015 floating MS + 70bps

43

Agenda


Profit & Loss

Liquidity & Funding




Transactions

Annex

Cover Pool

44

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 2015 amounts to EUR 7,329 mn

Average volume of loans is approx. € 1.88 mn

Average seasoning is 5.5 years

45

Public SectorParameters of Cover Pool and Issues

Total Value of the Cover Pool as of 31 March 2015 in EUR equivalent: 7,329 mn

• thereof in EUR: 3,543 mn

• thereof in CHF: 1,850 mn

• thereof public sector bonds in EUR equivalent: 1,936 mn

Moody’s Rating: Aaa

Nominal / Present Value Over-Collateralization*): 69.3% / 53.3%

Total Value of Sold Covered Bonds as of 31 March 2015 in EUR: 4,330 mn

*) Austrian Mortgage Banking Act requires a nominal over-collateralisation of 2%. The basis for its calculation is a cover pool valuereduced by legally defined haircuts. Taking these haircuts into consideration, the cover pool value amounts to EUR 6,835 mn, thus theovercollateralization is 57.9%.Additionally, in its Articles of Association, UniCredit Bank Austria commits itself to an over-collateralisation on a present value basis.

Parameters of Cover Pool

Weighted Average Life (in years incl. Amortization) 6.7

Contracted Weighted Average Life (in years) 9.1

Average Seasoning (in years) 5.5

Total Number of Loans 3,909

Total Number of Debtors 1,431

Total Number of Guarantors 285

Average Volume of Loans (in EUR) 1,874,815

Stake of 10 Biggest Loans 30.2%

Stake of 10 Biggest Guarantors 33.0%

Stake of Bullet Loans 61.4%

Stake of Fixed Interest Loans 35.6%

Amount of Loans 90 Days Overdue 0

Average Interest Rate 1.6%

Parameters of Issues:

Total Number 36

Average Maturity (in years) 4.9

Average Volume (in EUR) 120,268,211

46

Public SectorMaturity Structure of Cover Pool and Issues

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

Maturity up to 12 months 1,478 20.2%

Maturity 12 - 60 months 1,493 20.4%

thereof Maturity 12 - 36 months 473 6.5%

thereof Maturity 36 - 60 months 1,020 13.9%

Maturity 60 - 120 months 1,125 15.4%

Maturity longer than 120 months 3,232 44.1%

Total 7,329 100.0%

Maturity of Issued Covered Bonds in mn EUR in %

Maturity up to 12 months 850 19.6%




Maturity 60 - 120 months 2,097 48.4%

Maturity longer than 120 months 313 7.2%

Total 4,330 100.0%

47

Public SectorRegional Breakdown of Assets*) in Austria

*) Considering Guarantors

48

Public SectorAssets Volume Breakdown by Type of Debtor / Guarantor

Assets: Type of Debtor / Guarantor in mn EUR Number

State 550 4

Federal States 2,413 47

Municipalities 1,292 2,853

Guaranteed by State 555 166

Guaranteed by Federal States 1,665 259

Guaranteed by Municipalities 720 494

Other 133 86

Total 7,329 3,909

49

Public SectorVolume Breakdown by Size of Assets

Volume Breakdown by Size of Assets in mn EUR Number

below 300,000 260 2,359

thereof under 100,000 56 1,244

thereof 100,000 - 300,000 205 1,115

300,000 - 5,000,000 1,449 1,406

thereof 300,000 - 500,000 191 494

thereof 500,000 - 1,000,000 312 439

thereof 1,000,000 - 5,000,000 946 473

above 5,000,000 5,619 144

Total 7,329 3,909

50

Executive SummaryBank Austria Public Sector Cover Pool

Aaa Rating by Moody‘s - under review for upgrade

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

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

51

Mortgage Cover PoolParameters of the Cover Pool and Issues

Total Value of the Cover Pool as of 31 March 2015 in EUR equivalent: 9,120 mn

• thereof in EUR: 7,200 mn

• thereof in CHF: 1,801 mn

• thereof substitute cover in EUR: 119 mn

Moody’s Rating: Aaa

Nominal / Present Value Over-Collateralisation*): 73.6% / 78.6%

Total Value of Issued Mortgage Pfandbriefe as of 31 March 2015 in EUR: 5,252 mn

Total Value of Sold Mortgage Pfandbriefe as of 31 March 2015 in EUR: 4,052 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 cover pool value amounts to EUR 6,063 mn, thus the overcollateralization is 15.4%. Additionally, in itsArticles of Association, UniCredit Bank Austria commits itself to an over-collateralization on a present value basis.

Parameters of Cover Pool

Weighted Average Life (in years incl. Amortization) 9.5

Contracted Weighted Average Life (in years) 13.8

Average Seasoning (in years) 6.3

Total Number of Loans 26,587

Total Number of Debtors 24,829

Total Number of Mortgages 26,587

Average Volume of Loans (in EUR) 338,551

Stake of 10 Biggest Loans 13.6%

Stake of 10 Biggest Debtors 17.9%

Stake of Bullet Loans 36.9%

Stake of Fixed Interest Loans 13.1%

Amount of Loans 90 Days Overdue 0

Average Interest Rate 1.4%

Parameters of Issues:

Total Number 109

Average Maturity (in years) 5.4

Average Volume (in EUR) 48,183,949

52

Mortgage Cover PoolMaturity Structure of Cover Pool and Issues

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





Maturity 60 - 120 months 1,628 17.9%

Maturity longer than 120 months 5,740 62.9%

Total 9,120 100.0%

Maturity of Issued Covered Bonds in mn EUR in %




thereof Maturity 36 - 60 months 2,433 46.3%

Maturity 60 - 120 months 1,179 22.5%

Maturity longer than 120 months 475 9.0%

Total 5,252 100.0%

53

Mortgage Cover PoolAssets Volume Breakdown

Volume Breakdown by Size of Loans in mn EUR Number

below 300,000 2,866 23,024

thereof under 100,000 541 9,815

thereof 100,000 - 300,000 2,325 13,209

300,000 - 5,000,000 2,652 3,385

thereof 300,000 - 500,000 724 1,980

thereof 500,000 - 1,000,000 493 717

thereof 1,000,000 - 5,000,000 1,436 688

above 5,000,000 3,601 178

Total 9,120 26,587

54

Mortgage Cover PoolRegional Breakdown *) of Mortgages in Austria

*) Without substitute cover (consists of bonds)

55

Mortgage Cover PoolBreakdown*) by Type of Use

*) Without substitute cover (consists of bonds)

Mortgages Breakdown by Type of Use in mn EUR Number

Residential 3,689 22,912

Residential subsidized 1,739 2,002

Residential used for business purposes 497 1,036

Commercial 3,075 637

thereof Office 1,485 132

thereof Trade 730 63

thereof Tourism 213 86

thereof Agriculture 17 65

thereof mixed Use / Others 631 291

Total 9,001 26,587

56

Mortgage Cover PoolBreakdown*) by Type of Use

Bank Austria’s Mortgage Cover Pool Value accounts for € 9,001 mn as of 31 March 2015

(without substitute cover)

All mortgages in cover pool are located in Austria

The main concentration is in the City of Vienna 41.1% and the state of Lower Austria 25.5%

Breakdown of cover pool by type of use:

65.8% residential real estate (thereof 19.3% subsidized)

34.2% commercial real estate, divides as follows:

Office 16.5%

Trade 8.1%

Tourism 2.4%

Other / Mixed use 7.2%

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

The over-collateralization is approx. EUR 3.5 bn or 74% (as of 31th Dec.2014)

Covering of CHF risk in Cover Pool

FX-risks are explicitly considered in the rating process of Moody´s andare reflected as part of their over-collateralization requirement

Moody´s currently requires an OC of 26.5%

Bank Austria contractually committed itself to a higher OC of 32%

Internal Risk Management of Bank Austria

According to the Cover Pool Regulation of Bank Austria NPLs are removed regularly(monthly).

Less than 1% of the loans (175 of 26,000) were taken out in 2014 for this reason

Special safety buffers are designated for CHF Loans

The credit rating of FX-Loans is subject to additional and stricter standards andwill - as always - be evaluated regularly

For CHF Loans an additional FX-buffer of 20% on the credit volume is considered,which must be covered by the credit rating of the client

No new CHF mortgage loans, therefore no inflows into Cover Pool since 2010

Overview 31.12.2014

Issue volume EUR 4.8 bn

Over-collateralization EUR 3.5 bn 31.12.2014 31.01.2015

Total Asset Value EUR 8.3 bn o/w CHF EUR 1.6 bn EUR 1.8 bn (22% of total asset value)

Total Cover Value EUR 5.6 bn o/w CHF EUR 670 mln EUR 670 mln (12% of collateral value / HypBG)

(74%)

57

CHF Loans in mortgage Cover Poolare 100% private residential financing

Changes due toCHF revaluation

58

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

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) Source: UniCredit analysis on Sodali Shareholders' ID. All data based on ordinary shares as at 31 March 20142) As at 9 March 2015

Strong local roots in almost 20 countries

~ 130,000 employees

~ 7,500 branches

~ 31 mn customers in Europe

One of the most important banks in Europe

with total assets of ~ € 840 bn

One of the 30 Global Systemically Important

Banks (“G-SIBs”) worldwide

Market capitalization of ~ € 36 bn 2)

Common Equity Tier 1 (CET1) Ratio at 10.02%

under Basel 3 fully loaded

Main shareholders:

Stable shareholders, e.g. Foundations

Institutional investors

Retail investors

Shareholder Structure1)UniCredit Highlights

Retail,miscellaneous

and unidentifiedInvestors

StableShareholders

24.3%

InstitutionalShareholders

27.4%

48.3%

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 ofapprox. 300 mn

Managing a network of about1,400 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

*) FTE = Full-time equivalent**) excl. a further 1,000 branches and ~19,000 FTE of the Turkish Joint Venture

63

Agenda

Annex




64

Austrian Real Estate MarketOverview

The Austrian Real Estate Market is a small, relatively stable market. In the first quarter of

2014, appr. € 650 mn were invested in commercial real estate (according to CBRE)

Top yields in the office market are slightly below 5%. Currently, there is stable demand and a

very limited offer in the office market

The Austrian retail market is saturated. Throughout Austria there is very limited new

construction or extension of shopping centers. The top return regarding shopping centers is

approx. 5.25%.

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

Austrian National Bank (OeNB) mentions an overvaluation of approx. 22% in the first quarter

2014

According to OeNB, the low increase in real estate loans and a still low indebtedness of

households in an international comparison (and decreasing in relation to the GDP) indicates

a high share of own funds in private real estate purchases

65

Austrian Real Estate MarketPrices for residential real estate

Source: OeNB, TU Wien, Institut für Stadt- und Regionalforschung

Strong increase in residential real estate prices in Vienna

Austria excl. Vienna shows a much more stable development

Wohnimmobilienpreisindex (2000 = 100)

80

100

120

140

160

180

200

220

Q1

00

Q3

00

Q1

01

Q3

01

Q1

02

Q302

Q1

03

Q3

03

Q104

Q3

04

Q1

05

Q3

05

Q1

06

Q3

06

Q1

07

Q307

Q1

08

Q3

08

Q1

09

Q3

09

Q1

10

Q3

10

Q1

11

Q3

11

Q112

Q312

Q1

13

Q3

13

Q1

14

Wien Österreich ohne Wien

Residential Real Estate Price Index (2000 = 100)

Austria excl. ViennaVienna

66

Austrian Real Estate MarketOffice Market

Source: CBRE, IRG, EHL

The Viennese office market remains one of the most stable ones in Europe

Neuproduktion und VermietungsleistungBüroflächen Wien 2001-2014f

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

2013

2014

f

Neuflächenproduktion in m² Vermietungsleistung in m²

Office Space in Vienna 2001-2014

New space in m2 Rentable space in m2

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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