Eurobank S.A. · ATHEX:EUROB
Eurobank — EFG Eurobank Ergasias — Q1 2010 Earnings Presentation
41 slides from Eurobank's earnings presentation, May 27, 2010
Slide 1: First Quarter 2010 Results
SW-EUB022-2007-03-19-CMD-V7 May 27, 2010 First Quarter 2010 Results
Slide 2: Macro environment & results highlights
Page 2 Macro environment & results highlights 2
Slide 3: Macro environment – Greece
Macro environment – Greece Page 3 The 3-year Stabilization Program accounts for 11% of GDP, is heavily front loaded and relies primarily on spending cuts. Structural reforms include: Pension & healthcare reforms. Local government consolidation. Liberalization of labor market. IMF project
Slide 4: Macro environment – New Europe
Macro environment – New Europe Page 4 Economic conditions are improving GDP in the entire region to grow by 2.9% in 2010. Turkey (GDP growth: 5%) and Poland (GDP growth: 2.7%), are now expected to outperform Serbia and Ukraine to show positive growth rebound of 1.5% and 2% respectively. Bu
Slide 5: 1Q 2010 results highlights
1Q 2010 results highlights Page 5 1Q 2010 net profit at € 61m*. Second best ever pre-provision income at € 411m, up 13% yoy and 2% qoq. OpEx down 2% yoy and 8% qoq at € 354m. NII up by 9% yoy to € 592m. Provisioning marginally up qoq at € 336m – 90dpd formation down 27%yoy at € 574m. Cap
Slide 6: 1Q 2010 results highlights (II): New Europe performance
1Q 2010 results highlights (II): Page 6 New Europe performance Total net loans New Europe net profits 14.4 14.0 14.5 13.8 52 9.1 46 36 3.7 FY06 FY07 FY08 9M09 FY09 1Q10 €m Total deposits 4 2 9. 6 9. 7 10. 3 8. 7 5. 4 -8 -11 -10 2. 9 -15 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 FY06 FY07 FY08 9M0
Slide 7: Financial Review
Financial Review Page 7 1Q 2010 Results: Assets & Liabilities actively managed and under control Pre-provision income preserved Capital strength maintained New Europe profitable again 7
Slide 8: Selective loan growth and de-risking
Page 8 Selective loan growth and de-risking Loans – growth & de-risking Deposits – NE balances keep growing 1.2 46.8 45.7 57.5 58.0 -1.9 44.8 9.7 56.3 9.4 8.7 10.3 Rest of New -0.5 9.4 +0.1 9.5 Europe 9.9 36.2 5.2 +0.4 5.6 8.5 5.4 36.9 37.1 +0.8 Poland & Cyprus 34.5 4.4 Greece: 27.7 30.8 New Europe
Slide 9: Comfortable liquidity position
Page 9 Comfortable liquidity position Wholesale funding maturities profile Limited wholesale funding needs for 2010. 2,800 2,743 2,127 ECB exposure of €14bn. 400 1,052 460 Additional funding initiatives Funding raised in 2010 remaining 2011 2012 2013 2014 2009 on the way: covered bonds €m € 2b
Slide 10: 90dpd formation down 27%yoy
Page 10 90dpd formation down 27%yoy Group 90dpd formation drops by 90dpd ratio +58bps 27%yoy and by 46% in New Europe +50bps +29bps 7.27% Group 90 dpd +100bps 6.69% 6.40% -27% 5.90% 787 +100bps 4.93% 713 3.90% -13% Greece 4.20% 4.91% 5.77% 6.18% 6.43% 7.06% 574 New Europe 3.04% 5.02% 6.32% 7.08% 7.4
Slide 11: Adequate provision coverage
Page 11 Adequate provision coverage 90dpd provision coverage: 44% 4,224 NPL provision coverage: 56% Consumer Lending 1,142 3,352 90dpd NPLs Value of Total NPL NPL provisions provisions collaterals coverage recovery coverage coverage rates Mortgages 619 1,142 Consumer 1,867 >75% >75% ~5% >80% 35% Len
Slide 12: Financial Review
Page 12 Financial Review 1Q 2010 Results: Assets & Liabilities actively managed and under control Pre-provision income preserved Capital strength maintained New Europe profitable again 12
Slide 13: Pre-provision profit 13% up yoy
Page 13 Pre-provision profit 13% up yoy Quarterly pre-provision profit Pre-provision profit movement +13% 414 404 411 411 409 410 411 404 389 -16 -3 +29 -2 363 321* 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 4Q09 NII Fees Non core Costs 1Q10 € m. € m. * excl. € 160m own debt revaluation g
Slide 14: NII beats last year's respective quarter by 9%
Page 14 NII beats last year’s respective quarter by 9% Second highest ever quarterly NII despite crisis 621 608 608 590 590 599 592 560 566 544 517 600 608 600 482 564 580 Total NII 445 497 457 404 417 382 342 352 322 Loan margin 11 13 17 10 3 7 4 5 Interest rate -7 -18 -16 -9 -13 gapping 45 54 74 7
Slide 15: Loan repricing continues, asset mix and higher funding costs curtail NIM expansion
Loan repricing continues, asset mix and Page 15 higher funding costs curtail NIM expansion Evolution of Greek spreads (%) Evolution of NIM (%) 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 NIM (%) 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 Sight & Savings Accounts -0.06 -0.24 -0.46 -0.21 -0.19 Greece 2.34 2.54 2.54 2.59 2.48 Ne
Slide 16: Commission income gains 14% yoy
Page 16 Commission income gains 14% yoy Commission income evolution New Europe fees up 28%yoy 133 129 130 129 119 120 113 +14% 113 New +28% 48 Europe 53 58 37 Lending Activities 44 56 42 42 5 5 Network & 22 23 21 Other Activities 21 25 22 Capital Markets 18 22 18 15 18 19 Greece 81 76 +7% Mutual Fun
Slide 17: Cost containment remains firmly on track
Cost containment remains firmly on track Page 17 OpEx drops by 2.3% yoy and 6.8% qoq Greek OpEx drops by 3%yoy and 10%qoq -2.3% 224 227 -10% 211 383 207 204 362 363 364 354 35 Depr. 33 36 35 31 140 1Q 07 1Q 08 1Q 09 4Q 09 1Q 10 Admin. 133 132 133 130 Cost-to-Income at historic lows (%) 50.0 48.7 47.
Slide 18: Financial Review
Page 18 Financial Review 1Q 2010 Results: Assets & Liabilities actively managed and under control Pre-provision income preserved Capital strength maintained New Europe profitable again 18
Slide 19: Strong capital adequacy
Page 19 Strong capital adequacy Equity movement Capital FY 08 1Q 09 FY 09* 1Q 10 5,918 Adequacy (%) 801 Hybrids Equity Tier I ratio 7.1% 7.4% 8.4% 8.4% (Core Tier 1 less goodwill) (excludes Government €3.6bn €4.0bn €4.1bn Govt. preference shares) 950 prefs 294 3,643 -112 342 4,167 Core Tier I ratio
Slide 20: Financial Review
Page 20 Financial Review 1Q 2010 Results: Assets & Liabilities actively managed and under control Pre-provision income preserved Capital strength maintained New Europe profitable again 20
Slide 21: 2nd highest quarterly pre-provision profit in NE countries, while provisions abate
Page 21 2nd highest quarterly pre-provision profit in NE countries, while provisions abate Pre-provision profit: +23% yoy Provisions: -14% from peak . 119 115 116 112 103 103 97 96 102 96 93 93 90 84 77 49 42 34 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Pre-provision Profit Provisions 21
Slide 22: Encouraging trends in asset quality continue
Encouraging trends in asset quality Page 22 continue 13.0% 10.8% 12.1% 9.5% 9.0% 7.6% 8.5% 6.6% 5.8% 6.9% 2.6% 3.2% 2.6% 4.1% 90+ over av. 1.2% 1.1% 1.3% 1.8% 2.2% 2.4% 2.7% loan book 129 105 71 80 54 63 60 64 40 39 39 46 32 32 28 34 16 14 19 19 Gross 90+ 7 formation 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q
Slide 23: NE excl. UKR profitable throughout crisis
NE excl. UKR profitable throughout crisis - Page 23 POL, ROM and TUR recovering strongly 10.3 6.9 3.3 2.1 1.2 2.0 0.8 Net Profit -4.1 -4.1 -3.5 -4.0 -5.9 -11.1 -10.1 -12.2 1Q09 2Q09 3Q09 4Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10 Loan book Poland (€4.9bn) Romania (€3.4bn) Bulgaria (
Slide 24: New Europe: resilient pre-provision profit and improving bottom line
New Europe: resilient pre-provision profit Page 24 and improving bottom line New Europe efficiency and liquidity New Europe profits qoq improve 17.3 155.5 PAT (excl. Ukraine) Loans / Deposits (%) 6.8 6.8 6.5 145.2 5.1 143.2 143.1 4.5 140.8 Total PAT -7.9 -11.2 -10.3 64.3 Cost / Income (%) -14.9 62.8
Slide 25: Financial Review
Page 25 Financial Review 1Q 2010 Results: Assets & Liabilities actively managed and under control Pre-provision income preserved Capital strength maintained New Europe profitable again 25
Slide 26: Summary performance overview
Page 26 Summary performance overview Positive pre-provision trends Marginal increase in LLPs 414 404 411 389 363 336 325 287 303 Pre-provision 263 profit LLPs € m. 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 € m. 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 Profitable in every quarter during the crisis Strong capital position C
Slide 27: Segmental Performance
Page 27 Segmental Performance 27
Slide 28: Segmental Overview
Page 28 Segmental Overview 1Q 2010 PBT* per Segment Group PBT* -4.3% 86 75 71 23 1 -14 -18 4Q 09 1Q 10 Retail Corporate Wealth Global & New Europe Management Capital Markets Figures in € m. * after minority interest 28
Slide 29: Retail Segment
Page 29 Retail Segment Quarterly PBT evolution (€ m) 12 10 9 3 1Q 10/4Q 09 growth -1% -6% +12% nm 333 330 -14 1Q 09 2Q 09 3Q 09 4Q 09 1Q10 215 193 FY 09 1Q 10 137 129 – Cost to Income 44.1% 39.0% – Return on Equity 3.7% -6.2% 3 – Return on RwA 0.34% -0.59% – Share of profits 9.8% -20.3% -14 Revenues
Slide 30: Corporate Segment
Page 30 Corporate Segment Quarterly PBT evolution (€ m) 83 84 80 86 78 1Q10/4Q09 2% -16% 9% 7% growth 129 132 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 86 80 FY 09 1Q 10 – Cost to Income 24.2% 21.0% – Return on Equity 26.2% 25.6% 33 28 – Return on RwA 2.03% 2.06% 16 18 – Share of profits 81.5% 120.9% Revenues E
Slide 31: Wealth Management Segment
Page 31 Wealth Management Segment Quarterly PBT evolution (€ m) 7 4 1Q 10/4Q 09 3 3 growth -14% -3% -78% 1 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 20 17 16 16 FY 09 1Q 10 – Cost to Income 79.0% 91.9% – Return on Equity 10.9% 2.0% – Share of profits 2.7% 1.1% 4 1 Revenues Expenses Profits 4Q 09 Wealth Manageme
Slide 32: Global & Capital Markets Segment
Page 32 Global & Capital Markets Segment Quarterly PBT evolution (€ m) 32 22 25 23 1Q 10/4Q 10 19 growth 10% 1% 23% 42 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 38 FY 09 1Q 10 23 19 19 19 – Cost to Income 41.2% 44.8% – Return on Equity 23.7% 23.4% – Share of profits 22.6% 32.3% Revenues Expenses Profits Global
Slide 33: New Europe Segment
Page 33 New Europe Segment Quarterly PBT evolution (€ m) -18 1Q 10/4Q 09 -1% -4% -12% N/A growth -32 -34 -37 -37 243 241 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 163 157 116 FY 09 1Q 10 102 – Cost to Income 68.4% 65.0% – Return on RwA 0.75% -0.53% – Share of profits -33.3% -25.7% -18 -37 Revenues Expenses Prov
Slide 34: Appendices
a NS Page 34 Appendices
Slide 35: Financial Ratios
Page 35 Financial Ratios Financial Ratios 1Q10 1Q09 Net Interest Margin 2.78% 2.65% Cost-Income 46.2% 50.0% NPLs (% of loans) 5.77% 3.23% NPLs coverage 55.7% 77.6% Provision Charge (% of net loans) 2.40% 1.89% Tier Ι Ratio 11.0% 9.9% Total Capital Adequacy 12.2% 11.3% ROA after tax 0.3%* 0.4% ROE af
Slide 36: Summary Figures
Summary Figures Page 36 Summary Figures (€ m) 1Q 10 1Q 09 Δ% New Europe Net Interest Income 591.8 543.9 8.8% 198.7 Net fees & Commissions 109.3 94.6 15.5% 45.4 Insurance and non banking fees 20.0 18.5 8.2% 2.4 Total Operating Income 765.0 724.6 5.6% 252.6 Operating Expenses 353.8 362.0 -2.3% 149.5 I
Slide 37: Key figures of New Europe operations
Key figures of New Europe operations Page 37 Romania Bulgaria Serbia Cyprus Poland Turkey Ukraine NE Δ% Total Assets 5,470 3,925 1,886 2,149 5,570 2,310 802 22,126 +4.6% Balance Sheet Total Loans 3,426 3,076 1,098 632 4,942 1,231 647 15,053 +5.7% Total Deposits 1,919 1,882 752 1,846 2,793 823 303 10
Slide 38: 1Q 2010 – Summary per Segment
Page 38 1Q 2010 – Summary per Segment Wealth Global & Capital Capital & Elimination Total (€ m) Retail Corporate Management Markets Other Center New Europe Interest income 285.8 116.2 0.7 10.4 -13.3 0.0 191.9 591.8 Net fee & commission income 14.5 16.8 11.9 20.3 0.43 0.0 45.4 109.3 Net Insurance inc
Slide 39: 1Q 2009 – Summary per Segment
Page 39 1Q 2009 – Summary per Segment Wealth Global & Capital Capital & Elimination Total (€ m) Retail Corporate Management Markets Other Center New Europe Interest income 271.2 91.5 -1.1 0.8 -0.5 0.0 182.0 543.9 Net fee & commission income 12.1 11.4 9.5 26.2 -0.30 0.0 35.8 94.6 Net Insurance income
Slide 40: Contacts
Page 40 Contacts EFG Eurobank Ergasias, 20 Amalias Avenue, 105 57 Athens, Greece Fax: +30 210 3337 160 E-mail: investor_relations@eurobank.gr Internet: www.eurobank.gr Reuters: EFGr.AT Bloomberg: EUROB GA Investor Relations Dimitris Nikolos Tel: +30 210 3337688 E-mail: dnikolos@eurobank.gr Yanni
Slide 41: Disclaimer
Page 41 Disclaimer This communication has been prepared by and is the sole responsibility of EFG. It has not been reviewed, approved or endorsed by any third party retained by EFG. This communication is provided for information purposes only. The contents of this communication do not constitute or f
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