Eurobank S.a. · ATHEX:EUROB
Eurobank — Eurobank Ergasias Services and Holdings — Investor Presentation (March 2021)
47 slides from Eurobank's investor presentation, Mar 31, 2021
Slide 1: Eurobank Investor Presentation
Eurobank Investor Presentation 31 March 2021
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
Slide 3: 2020 operating performance
2020 operating performance Page 2
Slide 4: 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
Slide 5: Operating performance delivery
Operating performance delivery 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% Provis
Slide 6: 2021-2022 business update
2021-2022 business update Page 5
Slide 7: 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
Slide 8: 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
Slide 9: DTC amortization transactions DTC amortization
Total CAD, 2021-2022 FLB3 12.0% ~12.8% ~13.7% CET1 16.3% ~180bps ~16.6% ~120bps 16.0% ~100bps ~(60bps) 1 ~(70bps) ~(30bps) ~(50bps) ~(50bps) ~(20bps) ~(30bps) ~(60bps) Loan growth & other 2 2 FY20 FY21 IFRS 9 transitions FY21 PBT FY22 PBT IFRS9 transitions DTC amortization DTC amortization Loan grow
Slide 10: Financial goals, 2021-2022
Financial goals, 2021-2022 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 distribution 1. Adjusted
Slide 11: FY 2020 results highlights
FY 2020 results highlights Page 10
Slide 12: FY20 results
FY20 results Highlights Key financials 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; down 0.6% q-o-q Com
Slide 13: Pre-provision income (PPI)
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 Δ ΝΙΙ 3Q20 PPI 3Q20 PPI Δ other income Δ comm
Slide 14: Asset quality
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%
Slide 15: Capital position
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 6,198 196
Slide 16: Funding and liquidity
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 €0.7
Slide 17: MREL strategy
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 de
Slide 18: FY 2020 results review
FY 2020 results review Page 17
Slide 19: Balance Sheet composition
Balance Sheet composition Assets (€ bn) Liabilities and Equity (€ bn) 67.7 67.7 Equity 5.2 Net loans and 37.4 advances to customers Trading & • Core 67% other Tbills Deposits 47.3 Other • Time 33% issuers 2% 1% 18% Securities GGBs 8.4 47% PP&E, intangibles and other assets 4.8 Other Derivatives 2.6
Slide 20: Loans
Loans Gross loans (€ bn) Performing loans (€ bn) +2.1bn organic loan growth 44.4 45.0 +4.01 35.2 34.5 34.7 7.7 40.6 40.7 40.9 7.6 31.8 31.2 7.5 SEE 7.3 7.4 1.1 1.1 7.8 8.0 8.1 7.1 SEE 7.0 Greece 3.5 3.5 3.5 Greece 3.5 3.5 3.5 1.1 Senior notes 1.1 +1.5 14.2 Senior notes 20.5 21.0 13.7 16.7 16.7 17.0
Slide 21: Net interest margin & spreads
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)
Slide 22: Net interest income
Net interest 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 o/w SEE 100 96 90 91 90 0 331 (1) (2) 329 (2) (1) 378 367 364 349 348 Loan margin Eurosystem 5 10 0 0 10 Bonds & other 59 58 60 57 55 3Q20 Deposits SEE 3Q202 Bonds & othe
Slide 23: Commission income
Commission income Commission income breakdown (€ m) Commission income per region (€ m) 64bps over assets 109 109 104 104 95 22 Lending 95 21 92 92 26 SEE 88 28 88 15 16 24 19 26 23 34 Network transactions & credit cards 39 31 37 83 Greece 29 17 71 Capital Markets 5 11 7 76 6 64 Bancassurance & 66 20
Slide 24: Operating expenses
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 (%)
Slide 25: Asset Quality
Holdings Asset Quality | Page 24
Slide 26: 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
Slide 27: 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
Slide 28: 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 3Q18 1Q18 2Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Small busin
Slide 29: 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
Slide 30: 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
Slide 31: ESG commitments and performance
ESG commitments and performance Page 30
Slide 32: Performance
Performance 67% reduction of GHG emissions from 2014 to 2020 & 31% reduction of Energy Consumption from 2014 to 2020 Climate profile 19 green buildings, LEED (gold & platinum ratings) or BREEAM (good, very good & excellent ratings) certified 57% reduction of paper procured from 2014 to 2020 Pa
Slide 33: ESG roadmap
ESG 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 annual Publ
Slide 34: ESG ratings and regulations
ESG ratings and regulations ESG ratings Key regulations & standards Eurobank is included in all major Indexes The EU Sustainable Finance Action Plan The action plan is part of the European Green Deal and entails 10 regulations that lead financial service market participants to invest in sustainable
Slide 35: Appendix I – Supplementary information
Appendix I – Supplementary information Page 34
Slide 36: 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
Slide 37: 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
Slide 38: 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
Slide 39: 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
Slide 40: 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
Slide 41: 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
Slide 42: Appendix III – Glossary
Appendix III – Glossary Page 41
Slide 43: 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
Slide 44: Glossary – Definition of Alternative Performance Measures (APMs)
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures/ ratios Adjusted net profit: Net profit/loss from continuing operations after deducting restructuring costs, goodwill impairment, gains/losses related to the transformation plan and income tax adjust
Slide 45: Glossary – Definition of Alternative Performance Measures (APMs)
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures/ ratios Liquidity Coverage Ratio (LCR): The total amount of high quality liquid assets over net liquidity outflows for a 30-day stress period. Loans to Deposits: Loans and Advances to Customers at am
Slide 46: Glossary – Definition of Alternative Performance Measures (APMs)
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures/ ratios Provisions/NPEs ratio: Impairment Allowance for Loans and Advances to Customers, including impairment allowance for credit related commitments (off balance sheet items) divided by NPEs at the
Slide 47: Investor Relations contacts
Investor Relations contacts Dimitris Nikolos +30 214 4058 834 E-mail: dnikolos@eurobankholdings.gr Yannis Chalaris +30 214 4058 832 E-mail: ychalaris@eurobankholdings.gr Christos Stylios +30 214 4058 833 E-mail: cstylios@eurobankholdings.gr E-mail: investor_relations@eurobankholdings.gr Fax: +30 210
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