Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q2 2021 Earnings Presentation
40 slides from Unicaja Banco's earnings presentation, Jul 28, 2021
Slide 1: Unicaja Banco 2Q 2021 Results Presentation
Unicaja Banco 2Q 2021 Results Presentation 28th July 2021 0
Slide 2: Disclaimer
Disclaimer This presentation (the Presentation) has been prepared by Unicaja Banco, S.A. (the Company or Unicaja Banco) for informational use only. The recipient of this presentation has the obligation of undertaking its own analysis of the Company. The information provided herein is not to be relie
Slide 3: Index
Index Merger Unicaja Banco & Liberbank Key highlights Results & business Asset quality, liquidity & solvency Liberbank 2Q21 results 2
Slide 4: Index: Merger Unicaja Banco & Liberbank
Index Merger Unicaja Banco & Liberbank Key highlights Results & business Asset quality, liquidity & solvency Liberbank 2Q21 results 3
Slide 5: Merger by absorption of Liberbank
Merger by absorption of Liberbank Main transaction terms Merger by absorption of Liberbank into Unicaja Banco (Merger date July 30, 2021) Unicaja Banco will issue 1,075,072,456(1) new ordinary shares in exchange for Liberbank 100% share capital Resulting structure is 59.5% and 40.5% of the share cap
Slide 6: Index: Key highlights
Index Merger Unicaja Banco & Liberbank Key highlights Results & business Asset quality, liquidity & solvency Liberbank 2Q21 results 5
Slide 7: Summary of 2Q 2021 results
Summary of 2Q 2021 results Performing loans grew 2.2% both QoQ and YtD (0.6% excluding Q2 seasonal advances). This growth was explained by large corporates (+12.3%) and mortgages (+0.3%) YtD. Business Retail customer funds grew 2.1% QoQ (1.8% on-balance sheet and 3.4% off-balance sheet and insur
Slide 8: Committed to the sustainability transition
Committed to the sustainability transition Main achievements Some next steps Action Plan on Sustainable Finance, approved in June 2020 and updated in April 2021 to align with ECB guide on climate-related and environmental risks Release information on the management of “E” risks in accordance with
Slide 9: Index: Results & business
Index Merger Unicaja Banco & Liberbank Key highlights Results & business Asset quality, liquidity & solvency Liberbank 2Q21 results 8
Slide 10: The Group's net profit amounts to €70 million, +15% above 1H20
The Group's net profit amounts to € 70 million, +15% above 1H20 Profit & loss account (€ million) Var. Var. € million 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 2Q'21/1Q'2 Jun'21 Jun'20 % % Net Interest Income 145 148 144 142 140 137 150 151 145 140 -3.9% 285 277 2.8% Net Fees 55 58 58 59 61
Slide 11: Retail customer funds grew +7.5% YoY, boosted by off-balance sheet
Retail customer funds grew +7.5% YoY and 2.1% QoQ, boosted by „off-balance sheet‟ & insurance Total retail customer funds (€ bn) On-balance sheet customer funds (€ bn) Retail off-BS funds & insurance Sight (private sector) Term (private sector) Retail on-BS funds Other (private sector) Public sector
Slide 12: Performing loans grew +2.2% YtD, +0.6% excluding seasonal advances
Performing loans grew +2.2% YtD, +0.6% excluding seasonal advances Gross loans (€ Bn) Performing loans (€ Bn) Total gross loans (ex-reverse repos) +1.6% +2.2% 26.9 27.4 26.5 25.6 25.8 25.8 26.3 1.2 1.1 YtD% -10.4% YtD% 23.7 24.3 24.6 23.9 23.7 23.7 24.3 +2.3% +2.3% 2.0 2.0 +0.1% 1.9 1.7 2.0 2.0 2.0
Slide 13: 1H21 new production improves in corporates and individuals
1H21 new production improves in corporates and individuals New lending evolution (€ million) 2,221 1,774 221 +96% 1H21 vs. 2H20 97 1,419 1,095 New loan production to 1,201 396 +96% individuals + corporates 439 906 476 584 1H 20 2H 20 1H 21 Public sector Individuals Corporates New lending: Individual
Slide 14: Net interest income in Q2 decreased due to lower fixed income and NPLs
Net interest income in Q2 decreased due to lower contribution of fixed income and NPLs Net interest margin Net interest income bridge 2Q 2021 Quarterly evolution € million 150 151 145 137 140 145.4 1.5 139.7 3.7 3.5 3.0 0.93% 0.95% 0.94% 0.90% 0.85% 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 1Q21 Loans NPLs Fixe
Slide 15: Conservative management of the debt portfolio
Conservative management of the debt portfolio Breakdown , size and evolution of the debt portfolio (Fair Value Through OCI, Amortised Cost and SAREB) (1) 6.9% Size Duration 1.4% € Bn Years 0.8% Structural 17.9 2.6 Sovereign Debt portfolio 9.7% Other public debt Amortised TLTRO 0.9 0.2 Cost Covered B
Slide 16: Fee income improved +10.6% YtD
Fee income improved +10.6% YtD and +21.9% compared to same quarter of last year Net fees (€ million) Fees breakdown (€ million) June '20 June '21 % +21.9% Fee income 122.7 138.7 13.1% 62.7 61.7 63.9 56.6 From contingent risk and 52.4 6.4 6.3 -1.0% commitments From payments and collections 63.1 75.4
Slide 17: Operating expenses continue to improve
Operating expenses continue to improve Operating expenses (€ million) Spanish branches evolution CAGR(*) -8.4% 1,279 1,227 1,153 1,046 949 -6.9% 826 302.1 289.1 21.6 281.2 22.8 27.3 -2.7% 87.4 82.3 2016 2017 2018 2019 2020 2Q 21 78.9 193.1 184.0 175.0 Employees evolution (FTEs) 1H 19 1H 20 1H 21 CAG
Slide 18: Extraordinary provisions for Covid-19 of €11m booked in the quarter
Extraordinary provisions for Covid-19 of €11m have been booked in the quarter, reaching a total of €236m since 2020 Total impairments and other results (€ million) Cost of risk – Credit (%) 0.85% 284 228 (3) 0.71% 0.45% 200 154 98 0.26% 103 0.15% 36 (1) 0.05% (2) 83 51 62 0.02% 0.14% 0.19% 2019 (1)
Slide 19: Index: Asset quality, liquidity & solvency
Index Merger Unicaja Banco & Liberbank Key highlights Results & business Asset quality, liquidity & solvency Liberbank 2Q21 results 18
Slide 20: Asset quality management further reduces NPL balances
An asset quality management that enables to further reduce NPLs balances Non performing loans evolution NPL balances (€ million) NPL ratio (%) (-2.157M€) CAGR(*) 9.8% 3,215 8.7% -19.9% 2,710 6.7% 1,926 4.8% 4.2% 3.7% 1,351 1,181 1,058 2016 2017 2018 2019 2020 2Q 21 2016 2017 2018 2019 2020 2Q 21 NPL
Slide 21: Downward trend in requests for mitigating measures
... with a downward trend in requests for mitigating measures… Corporates Individuals ICO lines Individuals – payments moratoria (Drawn down balances) € million € million % 96% 97% mortgages -90.0% 1.004 835 668 84 Approved limit Drawn down Approved Outstanding balance 20
Slide 22: NPL reduction in corporates and individuals
… showing NPL reduction both in corporates and individuals while improving coverage ratio by 7.7 p.p. YoY and 1.1 p.p. YtD Exposure, NPL and coverage NPL collateralization levels Gross exposure NPLs Type of NPLs (€ million) NPLs % Appraisal value 1 € million € million Unsecured 224 21.2% - Secured 8
Slide 23: Foreclosed assets coverage has increased by 0.3 p.p.
Foreclosed assets coverage has increased by 0.3 p.p., with an upward trend in the sale of assets Foreclosed assets as at June 2021 (€ million) Released provisions over net book value (%) Provisions TOTAL FORECLOSED ASSETS 13.7 40.7 52.3 96.3 64.3 69.0 25.1 18.5 released (€M) Gross Value 1,041 381 Ne
Slide 24: NPAs decreased by 14.7% in 12 months and 7.6% YtD
NPAs decreased by 14.7% in 12 months and 7.6% YtD, maintaining a steady rate of decline Significant decrease of NPAs Non performing assets evolution (€ Bn) CAGR(1) -18.3% 66.0% 5.8 NPA coverage 4.6 2.6 3.6 -7.6% 1.9 1.7 2.5 2.3 2.1 3.2 1.1 1.1 1.0 2.7 1.9 2016 2017 2018 1.4 2019 1.2 2020 1.1 2Q 21 1
Slide 25: Strong liquidity position
Strong liquidity position Loan to deposits ratio NSFR & LCR Ratio Requirements Unicaja Banco 2Q 2021 65.2% 64.2% NSFR 100% 147% LCR 100% 310% 2020 2Q 2021 Desglose de activos líquidos Wholesale funding maturities – Balances (€M) and costs Liquidity generation capacity (€ million) Covered bonds issua
Slide 26: Significant improvement of the CET1 FL ratio due to A-IRB models
Significant improvement of the CET1 FL ratio due to the implementation of A-IRB models 2Q 2021 Regulatory solvency CET1 fully loaded bridge 2Q 2021 17.7% 0.3% 21.0% 2.2% 19.2% 15.1% CET 1 Total Capital CET1 FL A-IRB Rest CET1 FL 1Q21 (1) effect 2Q21 2Q 2021 RWAs density 92% €1,664m 49% Total capital
Slide 27: Index: Liberbank 2Q21 results
Index Merger Unicaja Banco & Liberbank Key highlights Results & business Asset quality, liquidity & solvency Liberbank 2Q21 results 26
Slide 28: Customer funds keep delivering strong growth
Customer funds keep delivering strong growth. Mutual funds net inflow record high, pushing fee income growth Total customer funds (€ m) Retail customer funds (€ bn) € Million 2Q 20 1Q 21 2Q 21 QoQ YoY 32.6 30.3 Customer Funds 32,524 34,409 35,542 3.3% 9.3% 7.7 Customer Funds on Balance Sheet 26,277
Slide 29: Performing loans up 10.4% YoY on record mortgage lending
Performing loans up 10.4% YoY on the back of historical record on residential mortgages new lending. Performing loans (€ m) Covid 19 measures € Million 2Q 20 1Q 21 2Q 21 QoQ YoY ICO Loans Public Sector 3,238 3,865 3,978 2.9% 22.8% Loans to businesses 6,132 6,397 6,417 0.3% 4.7% Drawn amount 1,828 Re
Slide 30: NPL and NPA ratio keep decreasing, Cost of Risk in line with guidance
Both NPL and NPA ratio keep decreasing in a challenging environment with Cost of Risk in line with guidance NPL Ratio evolution Cost of Risk (bps) 59 3.1% 53 54 55 55 49 2.9% 2.5% 26 26 23 22 20 16 15 14 2Q20 1Q21 2Q21 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Underlying CoR (bps) Total CoR (bps) NPA Ratio
Slide 31: Liberbank Profit and Loss Statement
Liberbank Profit and Loss Statement 2Q21 vs 1H21 vs € Million 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1H20 1H21 2Q20 1H20 Net Interest Income (recurrent) 122(1) 122 125 128 125 120 -2% 245 245 0% Net fees 50 48 49 53 59 57 20% 98 117 19% Dividends 0 0 0 1 0 4 n.r. 0 4 n.r. Associates 0 25 5 5 3 14 -43% 25 17
Slide 32: Recurrent pre provision profit maintains its positive evolution
Recurrent pre provision profit maintains its positive evolution on the back of strong commercial momentum Recurrent pre-provision profit (excl. trading) (€ m) 165.7 149.8 126.7 116.7 83.2 1H17 1H18 1H19 1H20 1H21 Note: It does not take into account any extraordinaries. It deducts €14.1m extraordinar
Slide 33: Strong capital ratios after measures that improve future profitability
Strong capital ratios after undertaking measures that will improve future profitability CET 1 FL quarterly evolution 19 67 20 20 20 14.4% 13.4% CET1 Ratio Mar 21 Early retirees Caser acct. Change in Organic generation Valuation adj & other CET1 Ratio Jun 21 modification RWAs 2Q 21 Capital Ratios E
Slide 34: Wholesale banking overview
Wholesale banking overview Wholesale funding breakdown Alco Porfolio € 9.2bn total portfolio €4.8 bn Capital €4.9 bn Markets 34% ECB 36% 0.7% average yield Money Markets 30% Amortised €8.9bn €4.2 bn Cost ow SAREB €1.7bn Fair Value €0.3bn 33
Slide 35: Liberbank Balance Sheet
Liberbank Balance Sheet € Million 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Cash on hand, Central Banks and Other demand deposits 1,291 2,068 2,070 2,211 2,510 2,266 Assets held for trading & Finantial assets at fair value through P&L 135 148 146 134 145 142 Financial assets at fair value through other comprehe
Slide 36: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 35
Slide 37: Additional Information
Appendix Additional Information 36
Slide 38: Additional financial information: Group Balance Sheet
Additional financial information Unicaja Banco Group Balance Sheet Balance sheet €m 2Q 2021 1Q 2021 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 1Q 2019 4Q 2018 Cash & equivalents 8,855 7,682 6,667 4,600 7,250 2,366 4,559 2,614 2,040 2,821 4,280 Assets held for trading & at fair value thr
Slide 39: Additional financial information: P&L Unicaja Banco Group
Additional financial information P&L Unicaja Banco Group Profit & loss account €m 1H 2021 1Q 2021 2020 FY 3Q 2020 2Q 2020 1Q 2020 2019 FY 9M 2019 1H 2019 1Q 2019 2018 FY Net Interest Income 285 145 578 427 277 140 579 437 293 145 601 Net Fees 126 62 233 170 114 61 231 172 114 55 219 Dividends 13 1 1
Slide 40: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 39