Islandsbanki Hf · OMXICE:ISB
Islandsbanki Hf — Íslandsbanki — 9M 2011 Earnings Presentation
26 slides from Islandsbanki Hf's earnings presentation, Dec 6, 2011
Slide 1: Results presentation – 9M 2011
6 December 2011 Resu lts presentation– 9M 2011 Birna Einarsdóttir, CEO 1
Slide 2: Forward Looking Statements
Forward Looking Statements Important information All information contained in this presentation should be regarded as The forward-looking statements made represent Íslandsbanki’s preliminary and based on company data available at the time of the current expectations, plans or forecasts of its future
Slide 3: Table of Contents
Table of Contents I. Our profile II. Highlights in 9M 2011 III. Income Statement IV. Assets & Restructuring V. Liabilities, Liquidity & Capitalisation The 9M financial statements are unaudited 3
Slide 4: I. Our profile
~wy istandsbanki I. Our profile
Slide 5: Strong banking heritage
Strong banking heritage Serving Icelandic households, agriculture, industry and commerce since 1875 Íslandsbanki was established on 15 October 2008 Íslandsbanki merged with Byr in December 2011 after the collapse of financial system Byr, the result of a line of mergers of Iceland’s savings banks,
Slide 6: Domestic universal bank and global specialist
Domestic universal bank and global specialist 135 years of full-service banking and financial services One of Iceland´s largest universal banking Retail Corporate and financial services groups, est. 1875 251 BRANCHES PROVIDE FULL-SERVICE CORPORATE 1100+ staff; assets of ISK 814 BN NATIONAL COVER
Slide 7: II. Highlights in 9M 2011
~wy islandsbanki II. Highlights in 9M 2011
Slide 8: Merger with Byr
Merger with Byr Minimal interruption to customers Head Office Estimated Branch Merger The corporate head office of the merged Bank will be date at Kirkjusandur and Lyngháls The merger of head office operations will commence Byr branch will merge with 16 January Reykjanesbær in December and is ex
Slide 9: Pro-forma balance sheet
Pro-forma balance sheet The merger with Byr grows the balance sheet by almost 20% Assets Liabilities ISK million (30.06.2011)1 ÍSB Merged Δ% ISK millions ÍSB Merged Δ% Cash and balances with CB 27,761 32,134 16 Financial liabilities 10,582 10,582 0 Derivatives 136 136 0 Deposits from CB and credit i
Slide 10: Covered Bond programme
Covered Bond programme Íslandsbanki is the first bank to list securities in Iceland after the collapse The programme Covered bonds Total size of the programme is ISK 100bn Considered more secure for investor than conventional bonds Current issue amounts to ISK 4bn - Investor has a claim on the
Slide 11: 9M financial highlights
9M financial highlights Key figures and ratios 1) RETURN ON EQUITY TOTAL CAPITAL RATIO STRENGTH RESULT 11.9% 28.8% NET INTEREST MARGIN TOTAL DEPOSITS / LOAN RATIO PROFIABILITY LIQUIDITY 4.8% 81.4% CORE COST / INCOME RATIO TOTAL ASSETS ISK BN PERFORMANCE ASSET BASE 50.6% 680 1. Figures reflect Ísland
Slide 12: III. Income Statement
~wy istandsbanki III. Income Statement 12
Slide 13: Income statement
Income statement Q3 and year to date Q3 Q3 9M 9M Net interest income ISK million 2011 2010 2011 2010 Bank earns less on the high equity base due to sizeable drop in risk free interest rates YoY Net interest income 7,848 8,308 24,151 25,747 CPI-linked assets earning less with lower inflation Net
Slide 14: 9M income split
9M income split Core operations continue to generate vast majority of income CORE INCOME OPERATING INCOME SPLIT By division By category 16,000 14,000 2,282 NII ISK 24.2BN 12,000 NFC ISK 4.4BN 10,000 15% 8,000 NII 6,000 13,355 123 NFC 4,000 3% 5,815 5,505 OTHER INCOME 2,000 1,075 0 866 61 720 (77) 82
Slide 15: IV. Assets & Restructuring
IV. Assets & Restructuring 15
Slide 16: Assets
Assets Consolidated – 30 September 2011 Cash and balances with Central Bank ISK million 30.09.2011 31.12.2010 Changes in cash balance mainly due to management of liquid assets between cash and bonds Cash and balances with CB 57,077 30,799 Bonds and debt instruments Derivatives 932 70 Mainly gove
Slide 17: Loan portfolio: well diversified
Loan portfolio: well diversified Modest contraction in loan assets CONSOLIDATED LOAN PORTFOLIO Individuals CONSOLIDATED LOAN PORTFOLIO By sector By borrower Real estate 1% 1% 2% 2% Seafood 6% Companies 4% 6% Commerce and 9% 32% Individuals services 8% Financial institutions Government secured custom
Slide 18: Loan portfolio performance
Loan portfolio performance Vast majority of non-performing loans are already in workout process LOAN PORTFOLIO ANALYSIS (LPA1) NON-PERFORMING LOANS (NPL2) TRANSFERRED TO WORKOUT Excludes loans to credit institutions, By status of restructuring By level of completion that are fully performing 12.4% 2
Slide 19: Restructuring
Restructuring Write-offs and debt adjustments total ISK 270bn to date1 Individuals CUMULATIVE WRITE-OFFS AND DEBT ADJUSTMENT Individuals, ISK bn Around 17,300 individuals have received some form of 60 debt forgiveness 50 Cumulative write-offs and adjustments ISK 57bn 40 ‐ Thereof write-offs due
Slide 20: V. Liabilities, Liquidity & Capitalisation
V. Liabilities, Liquidity & Capitalisation 20
Slide 21: Liabilities
Liabilities Consolidated – 30 September 2011 Deposits ISK million 30.09.2011 31.12.2010 Stable deposit base throughout the year Financial liabilities 11,180 9,090 Debt issued and other borrowings Derivatives 2,819 429 ISK 52bn bond issued to the Central Bank secured on a pool of mortgages Deposi
Slide 22: Deposits
Deposits Stable source of funding with blanket guarantee in place DEPOSIT DEVELOPMENT DEPOSIT BASE Total exposure, ISK BN By currency 500 12% 450 +0.2% 400 CPI-linked 428 429 350 15% Non CPI-linked 300 250 FX 200 150 73% 100 50 0 31.12.2010 30.09.2011 Slight increase in deposits Concentration is mon
Slide 23: Sound management of liquidity
Sound management of liquidity Liquid assets far exceeding targets set by regulator LIQUID ASSETS / DEPOSIT COVERAGE RATIO 30 September, parent company, ISK BN Class Asset type ISK FX Total ISK 183 BN in liquid assets Have remained high for past 3 years A Cash and balances with CB 56.1 1.0 57.1 C
Slide 24: Imbalances strictly monitored
Imbalances strictly monitored Gross foreign currency gap actively improved through restructuring IMBALANCES 30 September, ISK BN FX Inflation Foreign currency assets divided based on customer cash flow Real FX assets (FX/FX) amount to ISK 164 BN Assets 220 146 Exchange rate changes are fully off
Slide 25: Sound capital position
Sound capital position Ratios continue to strengthen on back of retained earnings CAPITAL RATIOS Development 32% 28% 28.8% Strong capitalisation utilised to grow 27.4% 28% 26.6% 4.2% 4.2% Far above temporarily heightened regulatory requirements 4.2% 24% 21.5% 4.0% of 16% 20% 19.8% 3.8% Legal lim
Slide 26: Takk fyrir
Takk fyrir 26