Eurobank S.A. · ATHEX:EUROB
Eurobank — Q1 2013 Earnings Presentation
25 slides from Eurobank's earnings presentation, May 31, 2013
Slide 1: First Quarter 2013 Results
SW-EUB022-2007-03-19-CMD-V7 31 May, 2013 First Quarter 2013 Results
Slide 2: Eurobank 1Q 2013 Highlights
Page 2 Eurobank 1Q 2013 Highlights Net profit of €375m, due to DTA gains. Deposit inflows in Greece continue unabated; €1.5bn added in1Q13 following €1.8bn in 4Q12. Group loans/deposits ratio at 132%. Eurosystem funding at €21.3bn, down from a peak of €34bn. Provision charges decline to the
Slide 3: Eurobank fully recapitalised via the HFSF
Page 3 Eurobank fully recapitalised via the HFSF In February, following the VTO, NBG acquired 84.4% of Eurobank shares. In April the relevant authorities decided that the recapitalization of the four systemic Greek banks was to take place within the month, preceding the merger with NBG. As a con
Slide 4: Core Tier I 9.5% post Recap & LME
Page 4 Core Tier I 9.5% post Recap & LME €2.2bn capital actions since onset of crisis New rules Disposal of Dias Disposal of Disposal of Actions LME Actions: treasury absorption Polish Ops Turkish Ops underway: €400m shares €100m €450m1 €200m1 €300m 10.8% LME €350m 9.5% 9.8% 9.5% 9.0% 8.9% 8.5% Reca
Slide 5: Eurobank Cyprus: well positioned to withstand macro turmoil
Eurobank Cyprus: well positioned to Page 5 withstand macro turmoil Very successful and profitable franchise with strong liquidity and capital position. Highly liquid operation with L/D ratio of 50% in 1Q13. Deposit outflows 1Q13 - to date less than €200m – net inflows in May. +90dpd loan rat
Slide 6: Results review
a NS Page 6 Results review
Slide 7: Deposits gathering in Greece continues unabated, Int'l Operations self funded
Page 7 Deposits gathering in Greece continues unabated, Int’l Operations self funded Controlled deleveraging in Greece - international Deposits in Greece recover steadily; international business stable deposits resilient 51.4 Group L/D 50.0 49.0 48.6 48.2 47.8 47.4 ratio Int’l Operations 34.0 Greece
Slide 8: Improving liquidity conditions, ECB funding at €21.3bn from €34bn at peak
Page 8 Improving liquidity conditions, ECB funding at €21.3bn from €34bn at peak Eurosystem funding (€bn) Total deposits in Greece up by €1.5bn in 1Q 13; following €1.8bn in 4Q12 34.0 Improving liquidity conditions, ECB funding at €21.3bn from €34bn at peak. 21.3 Eurosystem available liquidity
Slide 9: Pre-provision to improve further after the recap & market normalization
Page 9 Pre-provision to improve further after the recap & market normalization Pre-provision income evolution (€m) NII reduction Non-core Improvement Other Fees -206 OpEx reduction improvement 263 35 45 13 239 39 International 31 224 215 Greek deposits Greek Deposit spreads 70 70 spreads at 4Q11 lev
Slide 10: NII evolution
Page 10 NII evolution NII evolution per segment NII evolution per region Total NII Loan margin Capital & bonds Greece Interest rate gapping Deposit margin Int’l Operations €m Note: Turkey accounted as held for sale
Slide 11: NIM hit by increased funding cost
Page 11 NIM hit by increased funding cost Evolution of Greek spreads (%) Evolution of NIM (%) 4Q10 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 NIM (%) 1Q12 2Q12 3Q12 4Q12 1Q13 Core deposits 0.04 0.16 -0.33 -0.41 -0.51 -0.55 -0.51 Group 2.33 2.11 2.06 1.77 1.67 Time deposits & -2.04 -2.28 -2.57 -2.91 -3.24 -3.52 -
Slide 12: Commissions base, excluding annual fees recorded in 4Q, keeps growing
Page 12 Commissions base, excluding annual fees recorded in 4Q, keeps growing Commission income evolution per segment Commission income evolution per region 101 98 89 86 82 86 80 81 86 Adding back Govt’n guarantees cost 78 78 71 69 71 69 65 65 62 62 61 61 Non‐banking services Greece Insurance Mutual
Slide 13: Accelerated cost reduction; -9%yoy
Page 13 Accelerated cost reduction; -9%yoy Regional evolution of costs OpEx down 27% cumulatively since 2008 -9% 273 269 256 254 249 Int’l Operations 1,566 POL Greece TUR 1,358 -363 -27% Quarterly evolution of costs -9% Int’l Operations 995 273 269 -144 256 254 249 -31% Depr Admin Greece -219 -25% S
Slide 14: Cost of risk: Greece under pressure - Int'l Operations normalise
Page 14 Cost of risk: Greece under pressure - Int’l Operations normalise 90dpd formation 90dpd ratio 874 1Q12 2Q12 3Q12 4Q12 1Q13 811 Group 17.6% 19.6% 21.3% 22.8% 24.6% 768 Greece 18.2% 20.5% 22.5% 24.2% 26.3% 710 Int’l Ops 15.3% 16.0% 16.6% 17.2% 17.8% 695 654 594 601 Loans loss provisions evoluti
Slide 15: Int'l Operations asset quality: 90+ ratios and gross formation
Page 15 Int’l Operations asset quality: 90+ ratios and gross formation 90+ over av. loan book Gross 90+ formation € m. Loan book Romania (€ 2.9bn) Bulgaria (€ 2.7bn) 90+ over av. loan book Gross 90+ formation € m. Loan book Cyprus (€ 1.5bn) Serbia (€ 1.1bn) Ukraine (€ 0.7bn)
Slide 16: Int'l Operations: Self-funded and profitable
Page 16 Int’l Operations: Self-funded and profitable Self-funded International Operations Net loans-to-deposits ratio well below 100% +1.4 +4.1 +19% +83% Δnet loans & Δdeposits FY07‐1Q13 Net Loans Deposits € bn Note: Turkey accounted as held for sale
Slide 17: Int'l Operations: Bottom line recovers on normalised provisions
Page 17 Int’l Operations: Bottom line recovers on normalised provisions, improved revenues and expenses Operating Income Net Profit Operating expenses Provision charge Note: Turkey accounted as held for sale € m.
Slide 18: International Operations profitability
Page 18 International Operations profitability Net Profit Cyprus Serbia Luxemburg Ukraine Romania Bulgaria € m.
Slide 19: Appendices
a NS Page 19 Ae urobank | Appendices
Slide 20: Summary Figures
Page 20 Summary Figures Summary Figures Group (€ m) 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Net Interest Income 496.2 482.9 426.4 373.4 358.3 302.8 276.7 Net Fees & Commissions 86.3 78.4 68.5 60.5 62.4 70.6 65.3 Non Core Income 31.2 -34.9 41.5 50.0 -23.4 -35.4 0.6 Total Operating Income 613.8 526.4 536.4
Slide 21: Key figures of Int'l Operations – 1Q13
Page 21 Key figures of Int’l Operations – 1Q13 Romania Bulgaria Serbia Cyprus Ukraine LUX Int’l Δyoy%* Total Assets 4,035 3,186 1,675 3,313 739 1,329 14,055 -3.1% Balance Balance Total Loans (Gross) 2,902 2,713 1,062 1,482 667 470 9,297 -2.1% Sheet Sheet Total Deposits 1,815 2,232 814 2,886 315 1,04
Slide 22: 1Q 2013 – Summary per Segment
Page 22 1Q 2013 – Summary per Segment Global & Capital & Elimination International Retail Corporate Wealth Mngt Capital Total Other Center Operations Markets (€ m) Interest income 150.9 100.4 13.2 -62.3 -20.6 0.0 95.0 276.7 Net fee & commission income 6.9 16.1 6.1 -6.7 -0.38 0.0 23.8 45.8 Net Insura
Slide 23: 1Q 2012 – Summary per Segment
Page 23 1Q 2012 – Summary per Segment Global & Capital & Elimination International Retail Corporate Wealth Mngt Capital Total Other Center Operations (€ m) Markets Interest income 181.7 96.1 17.2 53.8 -29.0 0.0 106.7 426.4 Net fee & commission income 8.0 14.3 7.5 1.1 0.02 0.0 24.1 55.0 Net Insurance
Slide 24: Contacts
Page 24 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: EFGr.AT Bloomberg: EUROB GA Investor Relations Dimitris Nikolos Tel: +30 210 3337688 E-mail: dnikolos@eurobank.gr Yannis Ch
Slide 25: Disclaimer
Page 25 Disclaimer This communication has been prepared by and is the sole responsibility of Eurobank. It has not been reviewed, approved or endorsed by any third party retained by Eurobank. This communication is provided for information purposes only. The contents of this communication do not const