Eurobank S.A. · ATHEX:EUROB

Eurobank — Eurobank EFG — FY2011 Earnings Presentation

31 slides from Eurobank's earnings presentation, Apr 20, 2012

  1. Slide 1: Full Year 2011 Results

    SW-EUB022-2007-03-19-CMD-V7 April 20, 2012 Full Year 2011 Results

  2. Slide 2: Macroeconomic outlook

    Page 2 Macroeconomic outlook  Successful PSI completion a major milestone for Greece.  Upcoming general elections: critical for new government to assume programme ownership and implement rigorously.  Greek economy in 5th year of recession; GDP ca -7% in ’11; -5% in ’12; stabilization and improvem

  3. Slide 3: PSI impact on equity

    Page 3 PSI impact on equity 5.8 5.8 PSI+ Perimeter 4.6 Greek securities 3.9 €7.3bn of Greek Govn’t haircut Bonds & Govn’t (Additional) 5.0 (53.5%) guaranteed securities. 3.9 Greek Sovereign Debt Impairment of 79%. (Recoverable) Valuation 1.9 effect PSI (July 21st, 2011) 0.8 0.7 Pre-tax impact After

  4. Slide 4: Organic capital enhancement plan

    Page 4 Organic capital enhancement plan BoG assessment does not take into account the following: Actions completed:  LME: buyback of hybrid & LTII securities in Q1 with a Core Tier I gain of €250m.  Polbank transaction to close in April.  Signed agreement to sell Eurobank Tekfen to Burgan Bank of

  5. Slide 5: Liquidity

    Page 5 Liquidity  Greek deposit outflows of €1.5bn in 4Q11 but significant improvement since successful PSI, with trend reversal in March; trend continues in 2Q12.  ECB funding at €18bn; total Eurosystem funding around €30bn.  Available Eurosystem eligible liquidity buffers at €5bn.  No wholesal

  6. Slide 6: FY 2011 results highlights

    Page 6 FY 2011 results highlights  FY11 operating net result marginally negative at -€29m, despite crisis.  Including PSI impact and one-off valuation losses (with no regulatory capital impact) total loss amounted to €5.5bn.  Pre-provision income at €1.3bn in FY11; core pre-provision income down

  7. Slide 7: Asset quality

    a NS Page 7 iN mB Eurobank EFG Asset quality

  8. Slide 8: BlackRock credit losses diagnostic; 3-year credit loss projections

    BlackRock credit losses diagnostic; 3-year Page 8 credit loss projections GREECE Base Stress BRS 3-year loss projections € 4.2bn € 5.4bn BoG additional stress buffer* € 0.7bn € 1.1bn Estimated future 3-year losses: € 4.9bn € 6.5bn Eurobank Provisions stock end -2011 (Greece) € 2.8bn Basel II IRB Cap

  9. Slide 9: Three-year expected credit losses by sector/market comparison

    Three-year expected credit losses by Page 9 sector/market comparison 31/12  Eurobank portfolio is expected to perform Portfolio Outstandings significantly better than the market, 25% better in terms of credit losses in Mortgage €11.9bn Corporate loans and Small Business loans. Consumer € 5.5bn Corp

  10. Slide 10: Cumulative provisions of €4.5bn since the crisis & high collateral lead to solid coverage

    Page 10 Cumulative provisions of €4.5bn since the crisis & high collateral lead to solid coverage Cumulative provisions & Cost of Risk NPL 9.5% 950bps Value of Total NPL 90+ NPLs recovery collaterals coverage 6.3% rates Consumer 1,333 4,545 3.8% Stock (€m) 1,975 1,975 1.6% Provisions(€m) 1,355 1,355

  11. Slide 11: 90+ formation picks up on Greek economic contraction

    Page 11 90+ formation picks up on Greek economic contraction 90dpd formation picks up in Greece 90dpd ratio 4Q10 1Q11 2Q11 3Q11 4Q11 Group 10.2% 11.4% 12.5% 13.8% 15.3% 774 Greece 9.9% 11.3% 12.5% 14.0% 15.8% 708 681 New Europe 11.5% 12.0% 12.5% 12.7% 13.5% 657 644 596 598 563 534 500 492 517 Loans

  12. Slide 12: Asset quality in New Europe: gross 90+ formation stable at reasonably low levels

    Asset quality in New Europe: gross 90+ Page 12 formation stable at reasonably low levels 15.2% 17.7% 13.1% 14.3% 13.4% 14.6% 19.0% 11.6% 9.5% 16.4% 14.6% 14.3% 13.9% 12.1% 12.9% 12.4% 5.3% 5.0% 3.6% 3.2% 90+ over av. 8.5% 10.5% 6.4% 5.9% loan book 4.3% 3.6% 3.1% 80 63 56 39 42 39 46 44 35 37 38 34 3

  13. Slide 13: Results review

    iN mB Eurobank EFG Results review

  14. Slide 14: Capital position post PSI

    Page 14 Capital position post PSI Current position  Regulatory capital on 31 December 2011 at € 5.2bn (CAD 12%) before PSI.  Bank of Greece (BoG) assesses the bank as viable.  PSI regulatory impact € 5.8bn  HFSF underwrites immediate capital needs (€ 4.2bn) to bring CAD above 8%. Short and mediu

  15. Slide 15: Loan book de-risking continues – deposits in New Europe continue to grow

    Loan book de-risking continues – deposits Page 15 in New Europe continue to grow Loans – Gradual selective de-risking; Deposits evolution – trend reversal in March ‘12 53.2 53.0 53.4 51.5 50.9 41.2 New 10.6 10.0 10.3 Europe 10.6 10.6 New 8.1 Europe 33.9 Greece: 32.5 31.6 31.5 30.8 8.4 8.5 8.5 8.6 9.

  16. Slide 16: FY11 core pre-provision income down only 5% yoy

    FY11 core pre-provision income down only Page 16 5%yoy 1,530 1,450 1,497 1,258 Non-Core PPI 202 194 115 66 Core PPI 1,382 -5%yoy 1,328 +82 1,256 -63 1,192 -83 ΔNII ΔFees ΔOpEx ΔCore PPI FY08 FY09 FY10 FY11 €m

  17. Slide 17: NII stable over the last six quarters, despite the crisis

    Page 17 NII stable over the last six quarters, despite the crisis, both in Greece and abroad NII evolution per segment NII evolution per region 515 515 513 508 Total NII 503 Loan margin 595 599 607 619 625 366 354 361 370 360 Greece Capital & bonds 58 51 50 43 53 Interest rate gapping -21 -27 -33 -4

  18. Slide 18: Asset re-pricing continues, offsetting increased funding cost

    Asset re-pricing continues, offsetting Page 18 increased funding cost Evolution of Greek spreads (%) Evolution of NIM (%) 4Q10 1Q11 2Q11 3Q11 4Q11 NIM (%) 4Q10 1Q11 2Q11 3Q11 4Q11 Core deposits 0.04 0.10 0.39 0.43 0.16 Group 2.55 2.54 2.54 2.51 2.56 Time deposits & Greece 2.26 2.25 2.22 2.24 2.27 -2

  19. Slide 19: Commissions excluding government guarantee fees remain resilient

    Commissions excluding government Page 19 guarantee fees remain resilient Commission income evolution per segment Commission income evolution per region 106 104 104 104 6 98 10 15 Adding back Govt’n 100 100 12 22 94 guarantees cost 8 94 7 89 89 6 86 86 7 82 82 11 8 7 7 Non-banking services 13 7 6 Ins

  20. Slide 20: Costs reduction accelerates exceeding targets

    Costs reduction accelerates exceeding Page 20 targets Quarterly cost* as % of net loans on OpEx down 15.5% cumulatively in the last 3 consistent decline years 2.85% -12% Group yoy OpEx 2.73% 6.1% 3.0% 6.4% 15.5% reduction 2.62% 2.52% Greek yoy OpEx 3.4% 4.3% 8.3% 16.0% reduction FY09 FY10 FY11 4Q08

  21. Slide 21: New Europe performance: self funded & consistently profitable

    New Europe performance: self funded & Page 21 consistently profitable Total net loans Net profit on track +2.5 22 19 20 10.4 10.0 15 16 9.6 9.8 13 11 7.4 9 -2 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 FY07 FY08 FY09 FY10 FY11 € bn €m Total deposits Core Profit +3.8 105 8.5 49 8.1 7.0 7.0 27 4.7 -

  22. Slide 22: New Europe trends remain strong

    Page 22 New Europe trends remain strong Provision charge  Pre-provision income marginally affected since 2008.  Normalisation of provision charges. 365 270 242 183  Efficiency improves; C/I contracts by 4pps since 2008. FY08 FY09 FY10 FY11 PPI Revenues OpEx 839 801 784 327 332 748 321 310 518 474

  23. Slide 23: New Europe 4Q11 net profit at €11m

    Page 23 New Europe 4Q11 net profit at €11m Net Profit 12.6 11.5 10.4 8.1 8.7 8.8 8.7 7.9 7.5 7.3 5.9 6.8 5.9 5.7 5.1 5.4 5.7 5.7 3.3 3.3 4.2 2.0 2.8 2.6 1.2 1.6 1.8 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

  24. Slide 24: Appendices

    a NS Page 24 iN mB Eurobank EFG Appendices

  25. Slide 25: Financial Ratios

    Page 25 Financial Ratios Financial Ratios FY11 FY10 Net Interest Margin 2.54% 2.63% Cost-Income 48.8% 46.9% NPLs (% of loans) 12.1% 8.2% NPLs coverage 54.6% 51.1% Provision Charge (% of net loans) 2.68% 2.48% EBA core Tier 1 ratio* 9.8% 9.0% Tier Ι Ratio* 11.5% 11.9% Total Capital Adequacy* 12.0% 13

  26. Slide 26: Summary Figures

    Summary Figures Page 26 Summary Figures Group (excl. POL) (€ m) 4Q10 1Q11 2Q11 3Q11 4Q11 Net Interest Income 514.7 503.4 515.1 513.2 507.5 Net Fees & Commissions 100.3 93.9 85.6 89.3 81.8 Non Core Income 48.1 45.2 19.8 31.3 -30.0 Total Operating Income 663.1 642.5 620.6 633.9 559.3 Operating Expense

  27. Slide 27: Key figures of New Europe operations

    Key figures of New Europe operations Page 27 Romania Bulgaria Serbia Cyprus Turkey Ukraine NE Δyoy% Total Assets 4,541 3,445 1,753 3,075 2,317 754 15,873 -4.4% Balance Sheet Balance Total Loans (Gross) 3,218 2,874 1,077 1,236 1,514 654 10,573 +2.8% Sheet Total Deposits 1,814 2,021 792 2,695 884 306

  28. Slide 28: FY 2011 – Summary per Segment

    Page 28 FY 2011 – Summary per Segment Wealth Global & Capital Capital & Elimination (€ m) Retail Corporate Management Markets Other Center New Europe Total Interest income 1,066.5 545.8 11.6 -78.3 -58.4 0.0 552.0 2,039.3 Net fee & commission income 35.6 62.8 38.2 26.9 0.27 0.0 128.6 292.4 Net Insura

  29. Slide 29: FY 2010 – Summary per Segment

    Page 29 FY 2010 – Summary per Segment Wealth Global & Capital Capital & Elimination Total (€ m) Retail Corporate Management Markets Other Center New Europe Interest income 1,090.9 469.2 4.1 16.0 -56.7 0.0 579.1 2,102.6 Net fee & commission income 58.7 60.9 47.8 61.0 2.46 0.0 132.5 363.3 Net Insuranc

  30. Slide 30: Contacts

    Page 30 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

  31. Slide 31: Disclaimer

    Page 31 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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