Eurobank S.a. · ATHEX:EUROB

Eurobank — FY2013 Earnings Presentation

36 slides from Eurobank's earnings presentation, Feb 28, 2014

  1. Slide 1: Full Year 2013 results

    Full Year 2013 results 28 February 2014

  2. Slide 2: Disclaimer

    Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This presentation has been prepared by Eurobank. The material that follows is a presentation of general background information about Euroban

  3. Slide 3: Key highlights of 2013 results

    Key highlights of 2013 results 1 Continued recovery of pre-provision income to €177m for 4Q13, mainly driven by NIM improvements, synergies achieved and cost control initiatives  Net interest income (excl. TT) up 16% qoq to €361m (€393m incl. TT), driven by improving spreads (time deposits by 37bp

  4. Slide 4: Strategic Transformation Program

    Strategic Transformation Program 1 Focus on risk management and remedial/NPL management  Enhance Non-Performing Customers Unit (staff: 120)  Established Corporate Special Handling Unit (staff: 40)  Established Troubled Assets Committee at top management level 2 Enhance client relationship busines

  5. Slide 5: Continued recovery of PPI with further upside potential

    Continued recovery of PPI with further upside potential 4Q13 pre-provision income (€ m) C/I ratio excl. TT (%) 101% 177 148 68 Int'l 75.0 53 Operations 72.6 97 72.0 94 84 47 54 63 Greece 110 95 62.3 60.6 37 40 34 4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q13 PPI evolution (€ m) Key profitability

  6. Slide 6: Revenues mainly supported by improved spreads

    Revenues mainly supported by improved spreads Core Revenues Evolution (€m) Spreads (Greece, bps) 3Q13 Partially due to 464 4Q13 Δ loan recoveries pro-forma and remedial Fees & 394 71 Commissions Corporate 498 554 56 374 Retail 432 427 -5 368 342 Total lending 456 472 16 70 393 71 67 Core -49 -43 6 6

  7. Slide 7: Successful track record in cost reduction

    Successful track record in cost reduction OpEx down 7% yoy on a l-f-l basis OpEx breakdown on a l-f-l basis TT, Proton costs Eurobank excl. TT, Proton & TEKE (1) ΔFY13/FY12 proforma for the QoQ (1) entire quarter TEKE 35 295** Greece -7.6% 279 50 44 -12% TT & Proton Int’l Operations -6.4% 245 235 -4

  8. Slide 8: Integration program update

    Integration program update TT & Proton Retail Integration Program Targeted pre-tax synergies 2015 (€ m) Phase 2: completed Funding 56 33 89 44% Already achieved oPhase 3: in progress Cost 33 53 86 42% Completed relevant actions Phase 1: completed Revenue 18 9% €203m targeted pre-tax synergies in 2

  9. Slide 9: Keep increasing coverage ratio

    Keep increasing coverage ratio 90dpd formation (€ m) Coverage ratio increased to 50.1% 90dpd 730bps 17.6% 19.6% 21.3% 22.8% 24.6% 26.4% 27.7% 29.4% ratio 50.1% 48.8% 874 811 43.6% 44.3% 42.8% 42.9% 768 757 TT & Proton TT & acquisition 695 136 Proton 563 553 542 4Q12 1Q13 2Q13 3Q13 4Q13 Coverage rati

  10. Slide 10: Capital and liquidity position

    Capital and liquidity position Improved CT1 ratio at 11.3% L/D ratio further improved (%) 160.3 151.7 146.9 140.4 131.7 135.8 Greece 116.0 115.4 11.3% 111.4 109.8 Group -771 -83 Int'l 4,183 93.3 93.1 95.2 92.8 Operations 88.4 CT1 ratio (%) 2,090 8.1% 4Q12 1Q13 2Q13 3Q13 4Q13 CT1 capital (€ m) 2,947

  11. Slide 11: Management priorities for 2014

    Management priorities for 2014 Key strategic objectives Business targets 1 1 Focus on NPL recoveries Full integration of TT  Set up and/or strengthen dedicated Remedial Units  Dual brand strategy implementation  Enhance Non-Performing Customers General Division  Synergies realization  Adopt spe

  12. Slide 12: Summary 2013 performance and key figures

    Summary 2013 performance and key figures Balance sheet Income statement €m 2013(2) 2012 €m 4Q13(2) 3Q13 (3) Gross customer loans 53,498 47,841 Net interest income 392.5 323.3 Stock of provisions (7,888) (4,670) Fee income 71.0 70.3 Net customer loans 45,610 43,171 Total operating income 490.9 409.3

  13. Slide 13: Macroeconomic outlook

    Macroeconomic outlook Key economic indicators** Current trends & outlook 2013E 2014E 2015E  Ongoing improvement in a range of sentiment Real GDP growth -3.7% 0.6% 2.9% indicators increasingly reflected in “hard data” and key metrics of domestic economic activity Harmonized inflation -0.9% -0.6% 0.2

  14. Slide 14: 4Q 2013 results review: P&L highlights

    4Q 2013 results review P&L highlights

  15. Slide 15: Net interest income

    Net interest income NII breakdown (€ m) NII per region (€ m) 303 393 277 301 323 393 303 301 323 Int'l 277 125 Operations 104 101 118 102 605 605 Greece 571 558 563 267 Loan margin 199 174 200 205 4Q12 1Q13 2Q13 3Q13* 4Q13** Capital & bonds 10 4 23 23 49 NII evolution (€ m) -44 Volume +9 Market & Eu

  16. Slide 16: Spreads & NIMs

    Spreads & NIMs Lending spreads (Greece, bps) Deposit spreads (Greece, bps) Partially due to loan recoveries and Savings remedial and sight Corporate -51 -50 -49 -43 554 -55 509 494 498 501 Total 490 486 487 -213 Total -240 472 -263 474 -279 -271 -289 456 Time -326 427 -352 -359 -353 432 Retail 4Q12

  17. Slide 17: Commission income

    Commission income Commission income breakdown (€ m) Commission income per region (€ m) Total fees excluding 89 82 77 83 86 Govt. guarantees expense 71 70 71 71 70 71 65 67 8 8 8 Non-banking 65 67 10 services 9 6 14 13 Insurance 26 26 28 7 11 11 26 27 6 Int'l 9 Mutual funds Operations 12 7 8 8 10 4 5

  18. Slide 18: Greek operations

    Greek operations Operating income (€ m) Operating expenses (€ m) 229 339 275 180 167 167 166 204 207 200 4Q12 1Q13 2Q13 3Q13* 4Q13** 4Q12 1Q13 2Q13 3Q13* 4Q13** Provisions (€ m) Net result before one-offs (€ m) 557 376 366 353 328 -207 -235 -238 -257 -321 4Q12 1Q13 2Q13 3Q13* 4Q13** 4Q12 1Q13 2Q13 3

  19. Slide 19: International Operations

    International Operations Deposit gathering outpaces loan growth 7x (€ bn) L/D ratio (%) 143.2 +3.6 8.6 +73% +0.5 102.5 +7% 7.6 93.3 92.8 88.4 7.1 FY07 FY11 FY12 3Q13 4Q13 5.0 Δ Net loans & Δ Deposits FY07-FY13 (€ bn) Δ Net loans 2,187 Δ Deposit 990 612 440 268 134 138 185 96 -83 -61 -782 FY07 FY13 F

  20. Slide 20: International operations

    International operations Operating income (€ m) Operating expenses (€ m) 87 85 152 82 82 81 144 136 134 134 4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q13 Provision charge (€ m) Net result before one-offs (€ m) 12 114 103 -5 -3 69 54 -29 42 -59 4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q13 Pa

  21. Slide 21: 4Q 2013 results review: Balance sheet highlights

    4Q 2013 results review Balance sheet highlights

  22. Slide 22: Total assets breakdown

    Total assets breakdown FY13 Total assets breakdown (€ bn) FY13 Gross loan book breakdown Consumer 14% 77.6 Wholesale 37% Mortgages 35% SB Net loans and advances to customers 45.6 14% FY13 Securities portfolio breakdown Other Corporate GGBs 3% 6% 11% Securities 19.1 T-Bills 17% PP&E, intangibles and

  23. Slide 23: Funding and liquidity

    Funding and liquidity FY13 Funding breakdown (€ bn) Eurosystem funding (€ bn) 69.4 34.0 -50% Wholesale 0.8 Interbank 0.8 Subordinated Repos 9.4 26% EMTNs 37% ELA funding 5.6 ELA 15.0 ECB funding 11.4 Securitised 37% 17.9 17.0 5.4 5.6 Deposits 41.5 Sight Time & other ECB 19.0 14% 67% 12.5 11.4 Saving

  24. Slide 24: Loans and deposits at glance

    Loans and deposits at glance Gross loans (€ bn) Deposits (€ bn) 140.4% 131.7% 135.8% 54.4 53.5 111.4% 109.8% Group L/D 47.8 47.4 8.8 8.5 Int'l Operations 46.2 9.4 9.3 9.0 Greece 42.3 41.5 Int'l 22.4 21.9 Business 8.5 8.6 Operations 30.8 32.2 21.3 21.1 30.2 20.5 9.1 9.2 8.5 Mortgages 33.8 Greece 17.1

  25. Slide 25: 4Q 2013 results review: Asset quality

    4Q 2013 results review Asset quality

  26. Slide 26: Asset quality

    Asset quality 90dpd formation (€ m) Loan loss provisions (€ m) 660 442 418 422 420 103 874 Int'l 114 42 69 54 Operations 811 69 768 757 80 376 366 557 710 50 695 328 353 Greece 60 594 601 77 83 136 TT & Proton 4Q12 1Q13 2Q13 3Q13 4Q13* 563 553 69 67 542 70 3 94 90dpd ratio & coverage Int'l 805 Opera

  27. Slide 27: 90dpd formation per segment (Greece)

    90dpd formation per segment (Greece) Mortgages (€ m) Consumer (€ m) TT & Proton TT & Proton Eurobank Eurobank 241 227 234 205 210 214 201 190 160 170 89 173 164 138 162 122 119 147 149 143 100 92 117 103 115 135 79 133 43 78 78 75 76 117 108113 100 33 56 37 12 82 84 82 6 54 15 43 40 -35 1Q08 2Q08 3Q

  28. Slide 28: Asset quality initiatives and metrics

    Asset quality initiatives and metrics Group 90dpd ratios & coverage Strategic initiatives for credit risk mitigation Provision  Overall portfolio strategic directions: 90dpd ratio coverage – Shift from unsecured to secured lending and shorter tenors Consumer 40.9% 77.4% – Reduction of consumer loan

  29. Slide 29: Appendix: Summary financials

    Appendix Summary financials

  30. Slide 30: Summary financials

    Summary financials Income Statement (€ m) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13* 4Q13** Net Interest Income 426.4 373.4 358.3 302.8 276.7 301.0 323.3 392.5 Net Fees & Commissions 68.5 60.5 62.4 70.6 65.3 66.5 70.3 71.0 Other Income 41.5 50.0 -23.4 -35.4 0.6 -23.3 15.7 27.4 Total Operating Income 536.4

  31. Slide 31: Key figures of Int'l Operations – FY13 (€ m)

    Key figures of Int’l Operations – FY13 (€ m) Romania Bulgaria Serbia Cyprus Ukraine LUX Int’l Total Assets 3,854 3,068 1,591 2,955 665 1,106 12,988 Total Loans (Gross) 2,709 2,607 1,021 1,132 589 488 8,546 Balance Sheet Balance Total loans (Net) 2,286 2,310 964 1,091 462 486 7,599 Sheet Loans +90dpd

  32. Slide 32: One-off items analysis

    One-off items analysis Amount One off items Description (after tax) Provision for withholding taxes (€54m), new tax treatment of gains/losses from One-off tax provision -176 equities and derivatives (€92m), other tax-related provisions Goodwill impairment -142 Bulgaria (€97m), Serbia (€35m), Romania

  33. Slide 33: Asset Management

    Fee generating businesses Overview of the business Overview of the business  Strong position in Life and non-Life insurance: Ranks #3 in total Securities Services  Market leader in Institutional Custody insurance market with over 8% share and increasing trend  Regional offering with local operati

  34. Slide 34: FY 2013 – Summary per Segment (€ m)

    FY 2013 – Summary per Segment (€ m) Capital, Global & Other & International Retail Corporate Wealth Mngt Capital NHPB Total Group Elimination Operations Markets (€ m) Center Interest income 499.0 373.5 54.6 -64.1 -34.3 43.1 421.8 1,293.5 Fees & commissions 27.5 60.8 60.9 -2.0 18.1 1.3 106.6 273.2 Ot

  35. Slide 35: FY 2012 – Summary per Segment (€ m)

    FY 2012 – Summary per Segment (€ m) Global & Capital, Other International Retail Corporate Wealth Mngt Capital & Elimination Total Group Operations Markets Center (€ m) Interest income 661.3 409.8 61.0 10.5 -81.6 400.0 1,460.9 Fees & commissions 32.1 59.1 60.8 -19.1 20.5 108.7 262.1 Other income -2.

  36. Slide 36: Contacts

    Contacts 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: EURBr.AT Bloomberg: EUROB GA Investor Relations  Dimitris Nikolos Tel: +30 210 3337688 E-mail: dnikolos@eurobank.gr  Yannis Chalaris

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