Eurobank S.A. · ATHEX:EUROB

Eurobank — Debt Investor Presentation (April 2021)

44 slides from Eurobank's debt investor presentation, April 2021

  1. Slide 1: Eurobank Senior Roadshow Presentation

    Eurobank Senior Roadshow Presentation April 2021

  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 Ergasias Services and Holdings S.A. (“Eurobank Holdings”) and its 100% subsidiary Eurobank S

  3. Slide 3: Overview Of Proposed Transaction

    Overview Of Proposed Transaction  EUR-denominated, RegS bearer, 6 non-call 5-year Senior Preferred Notes Transaction  Issuer: Eurobank S.A. (“Eurobank”) Overview  Issuance under Eurobank’s EMTN Programme  Senior Preferred Notes expected ratings: Caa1/B/CCC (M/S/F)  Issuance expected to be fully

  4. Slide 4: Business Snapshot & Outlook

    Business Snapshot & Outlook Page 3

  5. Slide 5: Eurobank 2020 achievements

    Eurobank 2020 achievements 1 Eurobank initiatives through the pandemic  Support households and businesses’ financial needs with moratoria  10yr record credit expansion in business loans with €6.4bn disbursements in Greece  Leveraging on advanced electronic transaction channels; 2.2m active digita

  6. Slide 6: Continuous balance sheet de-risking

    Continuous balance sheet de-risking Group Figures €7.3bn NPEs stock reduction 2020 Core PPI up 3% vs initial guidance; up 4% vs FY19 830 840 865 € bn 13.0 (7.3) 5.7 1 FY19 FY20 e FY20 FY19 FY20 NPE ratio down by 15.2ppts; coverage up by 6.6ppts Texas Ratio2 improved by ~30ppts +6.6ppts 61.9% 55.3% P

  7. Slide 7: Clear set of targets for 2021-2022

    Clear set of targets for 2021-2022 Target Metrics 2021 2022 RoTBV1 ~7% ~10% EPS1 ~€0.10 ~€0.15 TBV/S ~€1.40 ~€1.50 C/I ~50% ~50% CoR ~130bps ~60bps NPE ratio ~9.0% ~6.0% FLB3 CET1 ~12.8% ~13.7% Total CAD ~16.0% ~16.6%  >100bps organic capital generation p.a. post 2022, paves the way for dividend di

  8. Slide 8: NPE reduction plan, 2021-2022

    NPE reduction plan, 2021-2022  Launching a new securitization (Mexico) in 2021 of ~€3.3bn perimeter (~85% Retail, ~15% Corporate)  New securitization to drive the NPE ratio to single digit by end 2021  Texas ratio1 post securitization at ~36% vs 63% at FY20  Balance sheet clean up improves quali

  9. Slide 9: 2021 profitability drivers

    2021 profitability drivers Δ y-o-y (~3%) ~+10% flat ~+4% ~+1% Negative impact from NPEs deconsolidation mitigated by funding (TLTRO) and new loans generation ~€875 m €865 m OPEX Greece Bancassurance, network activities, credit cards and rental income EPS1 ~€0.10 RoTBV1 ~7% FY20 Core PPI NII Greece F

  10. Slide 10: Total CAD, 2021-2022

    Total CAD, 2021-2022 FLB3 12.0% ~12.8% ~13.7% CET1 16.3% ~180bps ~16.6% ~120bps 16.0% ~100bps ~(60bps) ~(70bps) ~(30bps) ~(50bps) ~(50bps)1 ~(20bps) ~(30bps) ~(60bps) Loan growth & other 2 2 DTC amortization DTC amortization Capital accretive Loan growth & other Regulatory adjustments Mexico FY20 FY

  11. Slide 11: ESG strategy & roadmap

    ESG strategy & roadmap Achievement of annual Signatory to the Gender diversity absolute energy and UNEP FI PRB at BOD emissions reduction target Dec 2017 Dec 2018 Jun 2019 Oct 2019 Nov 2020 Nov 2020 2021 onwards Key milestones going forward:  Issue of the Sustainable Bond Redesigned Achievement of

  12. Slide 12: Macroeconomic Overview

    Macroeconomic Overview Page 11

  13. Slide 13: 2020: Greek economy encountered a steep decline, yet milder than forecasts

    2020: Greek economy encountered a steep decline (-8.2% YoY), yet milder relative to official forecasts Exports of services: -43.0% YoY Private Consumption: -5.2% YoY Despite the 2nd lockdown, Greece posted a second Greece registered the 4th deepest recession among the consecutive quarter of growth i

  14. Slide 14: Government-sponsored suspension schemes helped to contain the unemployment rate

    Government-sponsored suspension schemes helped to contain the unemployment rate February 2021 (% change y/y) Transport -5.1% Communication -1.7% Average Unemployment Rate Jan-Dec 20 at 16.5% Food & non-alcoholic (17.3% Jan-Dec 19) Housing -2.1% beverages -0.6% Hotel, Café and Restaurants -1.3% Sourc

  15. Slide 15: Gradual economic recovery is expected

    Gradual economic recovery is expected Forecasts 2020 2021 2022  Delays in vaccination and continuation of lockdown in Q1- Real GDP Growth, % YoY (realized for 2020) 2021 points to a more gradual rebound trajectory relative to earlier forecasts IMF (Oct-2020) -8.2 4.117 5.579  With an expected €14.

  16. Slide 16: Over €80bn available to Greece from EU initiatives

    Over €80bn available to Greece from EU initiatives Total funds available: 58.2+21.6+2.0 = 81.8 bn Strings attached to the €31bn from Next Generation EU (NGEU) set strict limitations and deadlines (but may act as a self-disciplinary mechanism for Greece):  70% of RRF funds to be committed by 2022, r

  17. Slide 17: FY 2020 results highlights

    FY 2020 results highlights Page 16

  18. Slide 18: 2020: Facing the COVID-19 pandemic challenge

    2020: Facing the COVID-19 pandemic challenge Pandemic economic shock alleviated by strong policy Eurobank initiatives support (EU and domestic)  Contained unemployment  Protect health & safety of our employees, with over 60% working  System deposit increase by c€20bn remotely  Ample liquidity (s

  19. Slide 19: FY20 results

    FY20 results Highlights Key financials Profitability – Net profit1 €544m in FY20; €196m in 4Q20 €m FY20 FY19 Δ(%) 4Q20 3Q20 Δ(%) 1  Core pre-provision income (PPI) up 4.2% y-o-y at €865m; up 1.6% q-o-q Net interest income 1,349.4 1,377.4 (2.0) 329.3 331.3 (0.6)  NII down 2.0% y-o-y at €1,349m; dow

  20. Slide 20: Pre-provision income (PPI)

    1 Pre-provision income (PPI) Core PPI and other income (€ m) Δ PPI (q-o-q, € m) 28 3 63 184 197 Other income 213 212 224 213 216 13 57 60 397 14 413 68 65 59 SEE (8) (2) 166 Greece 145 147 154 157 4Q19 1Q20 2Q20 3Q20 4Q20 PPI per region (€ m) 413 397 58 63 3Q20 PPI 3Q20 PPI Δ other income Δ commissi

  21. Slide 21: Net interest margin & spreads

    1 Net interest margin & spreads Net interest margin (bps) Deposit spreads (Greece, bps) 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Greece 200 194 204 188 187 Savings & Sight (60) (55) (55) (59) (62) SEE 265 255 231 226 219 Time (71) (66) (59) (55) (58) Group 215 208 210 197 195 Total (64) (59

  22. Slide 22: Net interest income & commission income

    1 Net interest income & commission income NII breakdown (€ m) NII evolution (q-o-q, € m) Total NII 347 339 349 331 329 o/w Greece 247 244 260 240 239 4 0 331 (1) o/w SEE 100 96 90 91 90 (2) (2) 329 (1) Loan margin 378 367 364 349 348 Eurosystem Bonds & 3Q202 SEE Wholesale Eurosystem Deposits 3Q20 5

  23. Slide 23: Operating expenses

    1 Operating expenses OpEx per region (€ m) OpEx breakdown (€ m) Greece (6.0%) 901 (3.6%) 869 237 109 109 220 222 213 213 Depreciation 60 57 56 56 57 SEE 312 317 Administrative 178 163 158 157 165 Greece 481 Greece staff cost Staff 443 (11.8%) 4Q19 1Q20 2Q20 3Q20 4Q20 FY19 FY20 Cost-to-income ratio (

  24. Slide 24: Balance Sheet & Loans composition

    2 Balance Sheet & Loans composition Assets (€ bn) Liabilities and Equity (€ bn) 67.7 67.7 Equity 5.2 Net loans and advances to customers 37.4 Trading & Tbills Other Deposits • Core 67% other 1% 47.3 issuers • Time 33% 2% 18% Securities 8.4 GGBs PP&E, intangibles and other assets 4.8 Other 47% Deriva

  25. Slide 25: Funding and liquidity

    2 Funding and liquidity Highlights Deposits (€ bn)  Deposits in Greece increased by €1.7bn in FY20; €0.7bn q-o-q 83.2% 83.4% 81.6%  Group Deposits up by €2.4bn in FY20; up €1.1bn q-o-q 80.1% 79.1% Net Loans / Deposits ratio  LCR ratio at 124% in 4Q20, improved from 107% in 2Q20 47.3  Repos at €0

  26. Slide 26: Asset quality

    3 Asset quality NPEs formation1 (€ m) NPEs ratio (%) 29.2% 28.9% 33 57 (24) SEE (5) (46) Greece (77) 15.3% 14.9% (15.2ppts) 14.0% (342) 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Loan loss provisions (€ m) Provisions / NPEs (%) 1.4% 1.3% 1.5% 1.7% 1.6% Cost of Risk2 +660bps 61.9% 155 146 62.5

  27. Slide 27: Capital position

    4 Capital position 10bps 20bps 16.3% 50bps 15.6% (10bps) 2.4% CET1 FBL3: Tier II 12.0% 16.3% 13.9% CET 1 ~530bps buffer over 2021 Total Capital requirement (TSCR) of 11.0% 1 2 3Q20 CAD 4Q20 result Debt Securities at CRR "Quick fixes" Other 4Q20 CAD FVOCI RWAs 39,801 436 40,237 (€ m) Capital 6,198 19

  28. Slide 28: MREL strategy

    4 MREL strategy Resolution considerations & issuance strategy MREL target  SRB has determined the OpCo (Eurobank) as the Resolution Entity and a Single Point of Entry (SPE) strategy for resolution purposes  MREL target communicated in Dec 2020 in line with expectations [22.96% of RWAs1]; official

  29. Slide 29: Senior Notes Summary Terms & Conditions

    Senior Notes Summary Terms & Conditions Page 28

  30. Slide 30: Senior Offering Terms & Conditions

    Senior Offering Terms & Conditions Issuer Eurobank, S.A. Issuer Rating Caa1 (Moody’s, Positive) / B (S&P, Stable) / B- (Fitch, Neg) Expected Issue Rating [Caa1] (Moody’s) / [B] (S&P) / [CCC] (Fitch) Description EUR Fixed Rate Senior Preferred Instruments due 2027 (the “Notes”) Status of the Notes /

  31. Slide 31: Appendix I – Supplementary information

    Appendix I – Supplementary information Page 30

  32. Slide 32: Summary performance

    Summary performance Balance sheet – key figures Income statement – key figures €m 4Q20 3Q20 €m 4Q20 3Q20 Gross customer loans 40,874 40,694 Net interest income 329.3 331.3 Provisions (3,477) (3,734) Commission income 108.8 95.1 Loans FVTPL 27 28 Operating income 635.1 610.8 Net customer loans 37,424

  33. Slide 33: Consolidated quarterly financials

    Consolidated quarterly financials Income Statement (€ m) 4Q20 3Q20 2Q20 1Q20 4Q19 Net Interest Income 329.3 331.3 349.5 339.4 346.7 Commission income 108.8 95.1 87.8 92.3 103.8 Other Income 197.0 184.3 63.4 2.7 28.2 Operating Income 635.1 610.8 500.6 434.4 478.7 Operating Expenses (221.7) (213.4) (2

  34. Slide 34: Consolidated financials

    Consolidated financials Income Statement (€ m) FY20 FY19 Δ y-o-y (%) Net Interest Income 1,349.4 1,377.4 (2.0) Commission income 384.1 353.7 8.6 Other Income 447.5 112.8 >100 Operating Income 2,180.9 1,843.9 18.3 Operating Expenses (868.8) (901.3) (3.6) Pre-Provision Income 1,312.1 942.6 39.2 Loan L

  35. Slide 35: SEE operations key figures – 4Q20

    SEE operations key figures – 4Q201 Bulgaria Cyprus Serbia Lux Sum Assets 6,010 6,852 1,691 1,892 16,445 Gross loans 4,053 2,019 1,225 535 7,832 Net loans 3,917 1,974 1,181 534 7,606 Balance Sheet (€m) 90dpd Loans 139 41 22 0 202 Balance NPE loans 273 74 72 0 419 Sheet Deposits 5,228 5,462 948 1,462

  36. Slide 36: Gross loans (SEE, € m)

    Gross loans (SEE, € m) Bulgaria Cyprus 3,898 3,988 4,053 2,019 3,801 3,856 1,953 1,983 1,874 1,910 575 617 632 155 164 168 Other 528 547 149 151 Consumer 1,075 1,089 1,114 1,150 1,167 Mortgage 1,725 1,759 1,798 1,819 1,851 Business Business 2,198 2,220 2,209 2,221 2,254 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19

  37. Slide 37: Deposits (SEE, € m)

    Deposits (SEE, € m) Bulgaria Cyprus 5,501 5,578 5,438 5,462 5,228 5,418 4,821 4,684 4,696 4,897 1,636 Time 2,335 2,190 2,034 1,930 Time 1,628 2,451 1,670 1,619 1,601 3,269 3,593 Core 3,532 3,150 3,064 3,096 3,050 3,242 3,248 3,384 Core 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Serbia Luxembo

  38. Slide 38: Loans under payment moratoria (Greece)

    Loans under payment moratoria (Greece)1 Payment moratoria in Greece2 Payment segmentation post moratoria €4.9bn Gefyra I&II 20% Step-up programmes 5% Expired FY20 €3.3bn Moratoria €4.9bn expiring FY21 Regular 13% Household 48% payment Corporate 42% €4.9bn 29% At risk Small business 20% 23% Expiring

  39. Slide 39: Δ stock NPEs (€m)

    Δ stock NPEs (€m) 30 (883) (130) (343) Δ stock NPEs Group (6,784) 22 (722) (112) (287) Δ stock NPEs Solo (6,805) NPE inflows 164 152 132 84 111 (117) (103) (81) NPE outflows (205) (53) (41) (46) (340) (65) Cash Payments (86) (118) (38) (60) (19)(16) (262) (15) (45) (12) (3) (64) (57) (82) (270) NPE

  40. Slide 40: NPEs formation per segment (Greece)

    NPEs formation per segment (Greece) Mortgages (€ m) Consumer (€ m) 22 (17) 7 (24) 4 2 (41) 1 (67) (57) (80) (66) (81) (83) (85) (2) (4) (105) (3) (2) (5) (123) (9) (10) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Small busin

  41. Slide 41: NPEs metrics (Group)

    NPEs metrics (Group) 90dpd bridge to NPEs (€ bn) NPEs per region Provisions & Provisions/ Total NPEs NPEs ratio collaterals / NPEs NPEs 0.2 (€ bn) (%) (%) (%) 5.7 Consumer 0.7 30.1 101.9 114 1.2 Mortgages 1.6 16.1 48.3 130 4.3 Small Business 1.0 25.4 62.2 128 Total Retail 3.3 20.3 63.5 126 Corporate

  42. Slide 42: Loans’ stage analysis (Group)

    Loans’ stage analysis (Group) Loans’ stage breakdown Provisions stock over NPEs Δ 62.5% 61.9% (€ bn) 4Q19 1Q20 2Q20 3Q20 4Q20 55.3% 55.6% 60.6% q-o-q Stage 1 25.2 25.7 28.3 28.8 28.7 (0.1) Stage 2 6.3 6.2 6.1 5.8 6.4 0.6 Stage 3 13.0 13.0 6.2 6.1 5.7 (0.4) (NPEs) 1 Total 44.5 44.9 40.5 40.7 40.9 0.2

  43. Slide 43: Appendix II – Glossary

    Appendix II – Glossary Page 42

  44. Slide 44: Glossary – Definition of Alternative Performance Measures (APMs)

    Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures/ ratios This document contains financial data and measures as published or derived from the published consolidated financial statements which have been prepared in accordance with International Finan

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