BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft. Vienna, Republic of Austria (as Issuer)

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1 Third Supplement dated 15 March 2016 to the Debt Issuance Programme Prospectus dated 6 May 2015 as supplemented by the First Supplement dated 4 September 2015 and the Second Supplement dated 2 February 2016 This document constitutes a supplement (the "Third Supplement") for the purposes of Article 13 of the Loi relative aux prospectus pour valeurs mobilières (the "Luxembourg Law") which implements Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003, as amended (the "Prospectus Directive"), into Luxembourg law to the Debt Issuance Programme Prospectus dated 6 May 2015 (the "Debt Issuance Programme Prospectus" or the "Prospectus"). This Third Supplement is supplemental to and must be read in conjunction with the Prospectus (the Prospectus together with the First Supplement dated 4 September 2015 ("First Supplement"), the Second Supplement dated 2 February 2016 ("Second Supplement") and this Third Supplement, the "Supplemented Prospectus"). Therefore, with respect to future issues of Notes under the Programme of BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft, references in the Final Terms to the Prospectus are to be read as references to the Supplemented Prospectus as supplemented by the First Supplement, the Second Supplement and this Third Supplement. BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft Vienna, Republic of Austria (as Issuer) EUR 10,000,000,000 Debt Issuance Programme (the "Programme") BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft ("BAWAG P.S.K" or the "Issuer") has requested the Commission de Surveillance du Secteur Financier (the "CSSF") of the Grand Duchy of Luxembourg ("Luxembourg") in its capacity as competent authority under the Luxembourg Law, to provide the competent authorities in the Republic of Austria ("Austria"), the Federal Republic of Germany ("Germany"), the United Kingdom and The Netherlands with a certificate of approval attesting that the Third Supplement has been drawn up in accordance with the Luxembourg Law (each a "Notification"). The Issuer may request the CSSF to provide competent authorities in additional host Member States within the European Economic Area with such a Notification. This Third Supplement has been approved by the CSSF and has been filed with said authority. The Third Supplement and the documents incorporated by reference will be published in electronic form on the website of the Luxembourg Stock Exchange ( and on the website of the Issuer ( subpage DAC /

2 RIGHT TO WITHDRAW In accordance with Article 13 paragraph 2 of the Luxembourg Law, where the Supplemented Prospectus relates to an offer of Notes to the public, investors who have already agreed to purchase or subscribe for Notes before this Third Supplement is published have the right, exercisable within a time limit of two working days after the publication of this Third Supplement, i.e. until 17 March 2016, to withdraw their acceptances provided that the new factor, mistake or inaccuracy referred to in Article 13 paragraph 1 of the Luxembourg Law arose before the final closing of the offer to the public and the delivery of the Notes. RESPONSIBILITY STATEMENT BAWAG P.S.K., with its registered office in Vienna, Republic of Austria is solely responsible for the information given in this Third Supplement. The Issuer hereby declares that, having taken all reasonable care to ensure that such is the case, the information contained in this Third Supplement is, to the best of its knowledge, in accordance with the facts and contains no omission likely to affect its import. NOTICE Terms defined or otherwise attributed meanings in the Prospectus have the same meaning in this Third Supplement. This Third Supplement shall only be distributed in connection with the Prospectus. The Issuer confirms that the Supplemented Prospectus contains all information with regard to the Issuer and any Notes which is material in the context of the Programme and the issue and offering of Notes thereunder, that the information contained therein is accurate in all material respects and is not misleading, that the opinions and intentions expressed therein are honestly held, that there are no other facts, the omission of which would make the Supplemented Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect, and that all reasonable enquiries have been made to ascertain all facts and to verify the accuracy of all statements contained therein. No person has been authorized to give any information which is not contained in, or not consistent with, the Supplemented Prospectus or any other information supplied in connection with the Programme and, if given or made, such information must not be relied upon as having been authorized by or on behalf of the Issuer, the Dealers or any of them. Neither the Arranger nor any Dealer nor any other person mentioned in the Supplemented Prospectus, excluding the Issuer, is responsible for the information contained in the Supplemented Prospectus, its Third Supplement or any other document incorporated therein by reference and, accordingly, none of these persons accepts any responsibility for the accuracy and completeness of the information contained in any of these documents. Save as disclosed herein and in the Supplemented Prospectus, there has been no other significant new factor, material mistake or material inaccuracy relating to the information included in the Supplemented Prospectus since its publication. DAC /

3 On 3 March 2016, the Issuer has published its Consolidated Annual Report 2015 as of 31 December To account for the newly published figures by way of referencing the Consolidated Annual Report, the Supplemented Prospectus shall be amended as follows: 1. The last sentence of paragraph 7 on page 2 of the Prospectus, as supplemented, shall be replaced by the following: "The parts of the Consolidated Statements for 2014 and 2015 included by reference into this Base Prospectus are non-binding English language working translations, whereby only the German language version is binding." 2. The text on page 71 of the Prospectus, as supplemented, shall be entirely replaced by the following: "INFORMATION INCORPORATED BY REFERENCE Comparative Table of Information Incorporated by Reference: The following documents shall be deemed to be incorporated in, and to form part of, this Base Prospectus. Section of this Base Prospectus BAWAG P.S.K. Historical Financial Information BAWAG P.S.K. Historical Financial Information Information incorporated by reference Consolidated Annual Report 2014 (English translation of BAWAG P.S.K. consisting of: Statement of Financial Position as of 31 December 2014 (Pages 56-57) Profit or Loss Statement for the Financial Year 2014 (Page 54) Statement of Comprehensive Income for the Financial Year 2014 (Page 55) Statement of Changes in Equity for the Financial Year 2014 (Page 58) Cash Flow Statement as of 31 December 2014 (Pages 59-60) Notes to the Consolidated Financial Statements 2014 (Pages ) Auditor s Opinion as of 31 December 2014 (Pages ) Consolidated Annual Report 2015 (English translation of BAWAG P.S.K. consisting of: Statement of Financial Position as of 31 December 2015 (Pages 54-55) Profit or Loss Statement for the Financial Year 2015 (Page 52) Statement of Comprehensive Income for the Financial Year 2015 (Page 53) Statement of Changes in Equity for the Financial Year 2015 (Page 56) Cash Flow Statement as of 31 December 2015 (Pages 57-58) Notes to the Consolidated Financial Statements 2015 (Pages ) Auditor s Opinion as of 31 December 2015 (Pages 176- DAC /

4 177) The Audited Consolidated Annual Reports 2014 and 2015 are available on the Issuer s website under The information incorporated by reference that is not included in the cross-reference schedules is considered as additional information and is not required by the relevant schedules of the Prospectus Regulation. Documents incorporated by reference are available on the website of the Luxembourg Stock Exchange: 3. The following text shall replace the text in chapter B.12 Selected historical key financial information of the Prospectus (Summary) on pages 9 to 11 of the Prospectus: "B.12 Selected historical key financial information The following key financial figures are taken from the Audited Consolidated Annual Report 2015 of the Issuer. Statement of financial position (in EUR million) Total assets 35,515 34,651 Financial assets 6,275 7,488 Customer loans and receivables 24,713 21,779 Customer deposits 21,695 21,135 Own issues 4,505 6,113 IFRS equity 1) 2,759 2,405 Risk-weighted assets 2) 16,259 16,792 Profit or loss statement (in EUR million) Net interest income 3) Net fee and commission income Core revenues Gains and losses on financial instruments 4) and other operating income and expenses 5) Operating income Operating expenses 3) (459.3) (477.2) Regulatory charges 5) (35.2) (24.6) Total risk costs (45.8) (81.6) Net profit 6) Key ratios (in %) Common Equity Tier I capital 13.1% 12.1% ratio* 7) DAC /

5 Total capital ratio* 8) 16.0% 15.8% Return on risk-weighted assets 9) 2.53% 2.03% Return on equity 10) 16.2% 14.9% Cost-income ratio 11) 46.7% 51.6% * Non-audited financial. 1) Equity attributable to the owners of the parent; excl. participation capital and minorities. 2) Based on regulatory IFRS CRR figures (BAWAG P.S.K. Group, fully loaded). 3) 2014 figures were adjusted. In accordance with IAS 19 the management has decided to reclassify the interest expense of provisions for social capital from operating expenses to interest expense for a more transparent disclosure and improved interest cost allocation. The effect in the first nine months of 2014 is plus EUR 11.1 million in operating expenses and minus EUR 11.1 million in interest expense. 4) Excluding valuation results attributable to shareholders of non-controlling interests. 5) In accordance with IFRS, the item other operating income and expenses also includes the regulatory charges. However, the Bank s management considers the regulatory charges as a separate expense. Accordingly, it is shown in a separate expense line. 6) Profit after tax attributable to owners of the parent. 7) Common Equity Tier I capital ratio = Common Equity Tier I Capital (CET I) / Riskweighted Assets. Common Equity Tier I capital (CET I): Based on IFRS CRR regulatory figures of BAWAG P.S.K. Group, excluding any transitional capital (fully loaded). 8) Total Capital ratio = Total Capital / Risk-weighted Assets. Total Capital: Based on IFRS CRR regulatory figures of BAWAG P.S.K. Group, excluding any transitional capital (fully loaded). 9) Return on Risk-weighted Assets = net profit / average Risk-weighted Assets. 10) Return on equity = net profit / average IFRS equity. 11) Cost-income ratio = operating expenses / operating income. Material adverse change Significant changes in the financial or trading position There has been no material adverse change in the prospects of the Issuer since 31 December Not applicable. There has been no significant change in the financial or trading position of BAWAG P.S.K. since 31 December 2015." 4. The following text shall replace the text in chapter B.12 "Ausgewählte historische Finanzinformationen" (German language translation of the Summary) on pages 26 and 27 of the Prospectus: "B.12 Ausgewählte historische Finanzinformationen Die folgenden Finanzkennzahlen sind dem geprüften Konzern- Geschäftsbericht 2015 der Emittentin entnommen. Bilanz (in Mio. EUR) Bilanzsumme Finanzielle Vermögenswerte Kredite und Forderungen an Kunden DAC /

6 Kundeneinlagen Eigene Emissionen IFRS-Eigenkapital 1) Risikogewichtete Aktiva 2) Erfolgsrechnung (in Mio. EUR) Nettozinsertrag 3) 722,3 677,0 Provisionsüberschuss 185,9 197,8 Operative Kernerträge 908,2 874,8 Gewinne und Verluste aus Finanzinstrumenten 4) und sonstige betriebliche Erträge und Aufwendungen 5) 75,7 50,2 Operative Erträge 983,9 925,0 Operative Aufwendungen 3) -459,3-477,2 Regulatorische Aufwendungen 5) -35,2 --24,6 Risikokosten -45,8-81,6 Nettogewinn 6) 417,9 333,1 Kennzahlen (in %) Common Equity Tier I Quote* 7) 13,1% 12,1% Gesamtkapitalquote* 8) 16,0% 15,8% Return on Risk-Weighted Assets 9) 2,53% 2,03% Return on Equity 10) 16,2% 14,9% Cost/Income Ratio 11) 46,7% 51,6% * Nicht geprüfte Finanzinformation. 1) Eigenkapital, das den Eigentümern des Mutterunternehmens zurechenbar ist; exklusive dem Eigenkapital zuzurechnendes Partizipationskapital und nicht beherrschende Anteile. 2) Basierend auf regulatorischen Werten nach IFRS CRR (BAWAG P.S.K., fully loaded). 3) Die Vorjahreszahlen wurden angepasst. In Übereinstimmung mit IAS 19 hat sich das Management zu einer transparenten Darstellung und einer verbesserten Allokation der Zinskosten für das Sozialkapital entschlossen. Die Zinsaufwendungen aus Sozialkapitalrückstellungen wurden daher von den operativen Aufwendungen in die Zinsaufwendungen umgegliedert. Die Auswirkungen in den ersten neun Monaten von 2014 auf die operativen Aufwendungen betragen +11,1 Mio. EUR und auf die Zinsaufwendungen -11,1 Mio. EUR. 4) Exklusive Bewertungsergebnisse, die Inhabern nicht beherrschender Anteile zuzurechnen sind. 5) Dieser Posten umfasst nach IFRS auch die regulatorischen Aufwendungen. Das Management der Bank betrachtet die regulatorischen Aufwendungen jedoch als gesonderten Aufwandsposten. Die regulatorischen Aufwendungen werden daher separat dargestellt. 6) Periodengewinn/Jahresüberschuss nach Steuern, der den Eigentümern des Mutterunternehmens zurechenbar ist. DAC /

7 7) Common Equity Tier I Quote = Common Equity Tier I Kapital (CET I) / risikogewichtete Aktiva. Common Equity Tier 1 Kapital (CET I): Basierend auf regulatorischen Werten nach IFRS CRR der BAWAG P.S.K. Gruppe, exkl. in den Übergangsphasen anrechenbarer Kapitalbestandteile (fully loaded). 8) Gesamtkapitalquote = Regulatorische Gesamtkapital / risikogewichtete Aktiva. Regulatorisches Gesamtkapital: Basierend auf regulatorischen Werten nach IFRS CRR der BAWAG P.S.K. Gruppe, exkl. in den Übergangsphasen anrechenbarer Kapitalbestandteile (fully loaded). 9) Return on Equity = Nettogewinn / durchschnittliches IFRS-Eigenkapital. 10) Cost/Income Ratio = operative Aufwendungen / operative Erträge. Wesentliche Verschlechterungen der Aussichten Wesentliche Veränderungen bei Finanzlage oder Handelspositions Seit dem 31. Dezember 2015 sind keine wesentlichen nachteiligen Veränderungen in den Aussichten der BAWAG P.S.K. eingetreten. Entfällt. Seit dem 31. Dezember 2015 sind keine wesentlichen Veränderungen in der Finanzlage oder der Handelsposition der Emittentin eingetreten." 5. The section Selected Financial Information on the pages of the Prospectus, as supplemented, shall be replaced in its entirety by the following: "SELECTED FINANCIAL HISTORY The following key financial figures are taken from the Consolidated Annual Report 2014 and 2015 of the Issuer and are audited (unless indicated otherwise): Statement of financial position (in EUR million) Change in % Total assets 35,515 34, Financial assets 6,275 7,488 (16.2) Customer loans and receivables 24,713 21, Customer deposits 21,695 21, Own issues 4,505 6,113 (26.3) IFRS equity 1) 2,759 2, Risk.weighted assets 16,259 16,792 (3.2) Profit or loss statement (in EUR million) Change in % Net interest income Net fee and commission income (6.0) Core revenues Gains and losses on financial instruments 2) and other operating income and DAC /

8 expenses 3) Operating income Operating expenses (459.3) (477.2) (3.8) Regulatory charges 3) (35.2) (24.6) 43.1 Total risk costs (45.8) (81.6) (43.9) Profit after tax 2) Net profit 4) Key ratios Common Equity Tier I capital ratio (fully loaded) 5) 13.1% 12.1% Total capital ratio (fully loaded) 6) 16.0% 15.8% Return on risk-weighted assets 7) 2.53% 2.03% Return on equity 8) 16.2% 14.9% Cost-income ratio 9) 46.7% 51.6% Resources as of Active workforce (in full-time equivalents) ) 2,622 2,836 * Non-audited financial information. 1) Equity attributable to the owners of the parent; excl. participation capital and minorities. 2) Excluding valuation results attributable to shareholders of non-controlling interests. Compared to the profit or loss statement presented in the Consolidated Financial Statements 2014 according to IFRS, the item gains and losses on financial instruments is EUR 2.7 million lower (2013: EUR 8.7 million higher). Accordingly, the item profit after tax presented above is EUR 2.7 million lower (2013: EUR 8.7 million higher) than the profit after tax presented in the Consolidated Financial Statements 2014 according to IFRS. 3) In accordance with IFRS, the item other operating income and expenses also includes the regulatory charges. However, the Bank s management considers the regulatory charges as a separate expense. Accordingly, it is shown in a separate expense line. 4) Profit after tax attributable to owners of the parent. 5) Common Equity Tier I capital (CET I) / risk-weighted assets; for exact definitions please refer to page 47 of the Consolidated Annual Report as of 31 December ) Total capital / risk-weighted assets; for exact definitions please refer to page 47 of the Consolidated Annual Report as of 31 December ) Return on risk-weighted assets = net profit / average risk-weighted assets. 8) Return on equity = net profit / average IFRS equity. 9) Cost-income ratio = operating expenses / operating income. Since 2014, regulatory reporting has been performed on the level of BAWAG Holding and Sacher Holding N.V. Group as the EU parent financial holding company of the group of credit institutions. The following table shows the breakdown of own funds of Sacher Holding N.V. Group applying transitional rules and its own funds requirement as per 31 December 2015 and as per 31 December 2014 pursuant to CRR applying IFRS figures and the CRR scope of consolidation. in EUR million 2) 2) Share capital 0 0 Reserves (including funds for general banking risk) after deduction of intangible assets 2,434 2,463 DAC /

9 Other comprehensive income (33) 20 IRB risk provision shortfall (20) (11) Prudent valuation, cumulative gains due to changes in own credit risk on fair valued liabilities, prudential filter for unrealized gains (56) (148) Deferred tax assets that rely on future profitability excluding those arising from temporary differences (13) 0 Excess of deduction from AT1 items over AT1 capital (189) (235) Common Equity Tier I 2,123 2,089 Hybrid capital 1) 0 68 IRB risk provision shortfall (15) (21) Deduction of intangible assets (174) (282) Excess of deduction from AT1 items over AT1 capital Additional Tier I 0 0 Tier I 2,123 2,089 Supplementary and subordinated debt capital Hybrid capital 1) 0 17 Excess IRB risk provisions IRB risk provision shortfall (36) (43) Tier II Own funds 2,580 2,617 1) According to CRR, hybrid capital is partially eligible among Additional Tier I and Tier II. In June 2015, the last eligible hybrid capital was redeemed. 2) Own funds as of 31 December 2015 differ from those as of 31 December 2014 inter alia because of different CRR transitional rules for 2015 and 2014 for the eligibility of capital and deductions from own funds. Furthermore, a foreseeable dividend is included. Capital requirements (risk-weighted assets) based on a transitional basis in EUR million Credit risk 14,486 14,939 Market risk Operational risk 1,620 1,615 Capital requirements (risk-weighted assets) 16,203 16,657 Supplemental information on a fully loaded basis in EUR million Common Equity Tier 1 capital ratio based on total risk BAWAG P.S.K. 1) BAWAG P.S.K. 1) 12.4% 11.8% 13.1% 12.1% DAC /

10 Total capital ratio based on total risk 15.3% 15.4% 16.0% 15.8% 1) Figures as shown in the Group Management Report Key figure according to CRR including its traditional rules in EUR million Common Equity Tier 1 capital ratio based on total risk BAWAG P.S.K. 1) BAWAG P.S.K. 1) 13.1% 12.5% 13.8% 12.9% Total capital ratio based on total risk 15.9% 15.7% 16.7% 16.1% Source: Consolidated Annual Report as of 31 December Figures audited." 6. The following text shall replace the first paragraph under the heading "4. Trend information" on page 345 of the Prospectus, as supplemented: "There has been no significant change in the financial or trading position of BAWAG P.S.K. since 31 December 2015." 7. The following text shall replace the text under the heading "7. Documents on Display" on page 390 and 391 of the Prospectus, as supplemented: "The following documents (or copies thereof) will be available for inspection at the registered office of the Issuer and from the specified office of the Paying Agent for the time being in Austria: The Articles of Association of BAWAG P.S.K. The following parts of the Audited Consolidated Annual Report 2014 (English translation) of BAWAG P.S.K.: Statement of Financial Position as of 31 December 2014 (Pages 56-57), Profit or Loss Statement for the Financial Year 2014 (Page 54), Statement of Comprehensive Income for the Financial Year 2014 (Page 55), Statements of Changes in Equity for the Financial Year 2014 (Page 58), Cash Flow Statement as of 31 December 2014 (Pages 59-60), Notes to the Consolidated Financial Statements 2014 (Pages ), Auditor's Opinion as of 31 December 2014 (Pages ). The following parts of the Audited Consolidated Annual Report 2015 (English translation) of BAWAG P.S.K.: Statement of Financial Position as of 31 December 2015 (Pages 54-55), Profit or Loss Statement for the Financial Year 2015 (Page 52), Statement of Comprehensive Income for the Financial Year 2015 (Page 53), Statements of Changes in Equity for the Financial Year 2015 (Page 56), Cash Flow Statement as of 31 December 2015 (Pages 57-58), Notes to the Consolidated Financial Statements 2015 (Pages ), Auditor's Opinion as of 31 December 2015 (Pages ). The Audited Consolidated Annual Reports 2014 and 2015 are also made available on the Issuer's website under This Base Prospectus, any Final Terms relating to Notes listed on the official list of the Luxembourg Stock Exchange and/or Vienna Stock Exchange as well as the information incorporated by reference in this Base Prospectus may be obtained from the Paying Agent in Frankfurt am Main free of charge and are also available on a website of the Vienna Stock Exchange ( and the website of the Luxembourg Stock Exchange ( DAC /