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