Eurobank S.A. · ATHEX:EUROB
Eurobank — Q1 2017 Earnings Presentation
52 slides from Eurobank's earnings presentation, May 19, 2017
Slide 1: First Quarter 2017 Results
First Quarter 2017 Results 19 May 2017
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. The material that follows is a presentation of general background information about Euroban
Slide 3: Table of contents
Table of contents Highlights 3 1Q2017 results review 9 Asset Quality 17 International operations 23 Appendix I – Supplementary information 30 Appendix II – Macroeconomic update 35 Appendix III – Glossary 46 Page 2
Slide 4: 1Q17 results highlights and key financials
1Q17 results Highlights Key financials €m 1Q17 4Q16 Δ(%) 1Q17 1Q16 Δ(%) 1 Net profit of €37m in 1Q17 Net interest income 381.2 388.7 (1.9) 381.2 382.8 (0.4) Core pre-provision income (PPI) down 5.4% q-o-q; up 9.6% y-o-y Commission income 79.9 82.2 (2.9) 79.9 67.8 17.7 NII down 1.9% q-o-q at €381
Slide 5: Pre-provision income (PPI)
Pre-provision income (PPI) Core PPI and other income (€ m) Highlights 64 67 31 55 40 Other income Core PPI down 5.4% q-o-q at €217m; up 9.6% y-o-y 229 217 Core PPI NII down 1.9% q-o-q at €381m; stable y-o-y 209 218 198 Commission income down 2.9% q-o-q; up 17.7% y-o-y Operating expenses down
Slide 6: Asset quality
Asset quality NPEs formation1 (€ m) 90dpd formation1 (€ m) 50.7 50.0 50.0 50.7 50.8 Coverage (% ) 64.3 65.0 65.5 66.1 65.5 Coverage (% ) 44.2 45.1 45.6 45.2 45.0 Ratio (% ) 34.8 34.7 34.8 34.7 34.8 Ratio (% ) 492 371 154 5 Int'l 149 42 149 Greece Int'l (63) (9) (16) (28) (72) Greece (108) (85) 1Q16
Slide 7: Funding and liquidity
Funding and liquidity Eurosystem funding (€ bn) ELA eligible collateral (€ bn)2 Other Pillar II bonds 3 34.0 32.7 0.4 0.9 9.8 25.3 19.0 5.3 15.7 13.8 13.9 2.1 3.4 2.2 ECB 22.9 Credit Claims 20.0 15.0 ELA 13.7 11.9 12.2 11.6 Jun 12 Jun 15 Dec 15 Dec 16 Mar 17 May 17 1 Interbank repos and eurosystem f
Slide 8: Capital position
Capital position Phased-in CET1 Fully loaded Basel III CET1 (FLB3) 55bps 17.3% 35bps 17.6% 17.3% 250bps 16.4% 17.2% 10bps - (40bps) 10bps 13.9% 13.8% 4Q16 CET1 1Q17 CET1 post 1Q17 result (DTA, minorities FY17 phase-out 1Q17 CET1 AFS & other 1Q17 FLB3 1Q17 CET1 FLB3 incl. pref. Minorities and DTA pha
Slide 9: International Operations
International Operations Core PPI (€ m) Net Profit1 (€ m) 74 37 65 65 67 63 30 30 29 26 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Loan loss provisions (€ m) Net Loans and Deposits (€ bn) 2.0% 3.1% 1.9% 1.9% 1.6% Cost of Risk 10.7 52 6.6 33 31 31 27 3.9 2.8 1.7 1.9 2.3 1.5 1.4 0.8 0.7 0.4 Int
Slide 10: 1Q 2017 results review
1Q 2017 results review | Pageo
Slide 11: Loans and deposits
Loans and deposits Gross loans (€ bn) Deposits (€ bn) Δ loans l-f-l1 (€m) (328) 54 (195) 125.1% 119.9% 117.2% 114.8% 115.1% 51.3 51.0 50.7 Loans/Deposits 50.6 50.2 7.7 7.5 International 7.4 7.5 7.5 Greece 34.0 33.7 33.0 33.4 31.8 21.9 21.9 Business 10.6 21.7 21.7 21.4 10.2 10.2 10.7 9.7 Internationa
Slide 12: Assets
Assets Total assets (€ bn) Gross Loans Consumer 13% Corporate 38% Mortgages 65.7 35% Small Business 14% Net loans and advances to customers 38.7 Securities Trading & other GGBs 6% 16% Securities 12.4 GTBs PP&E, intangibles and other assets 10% 3.8 Derivatives 1.8 Loans and advances to banks 2.7 EFSF
Slide 13: New time deposits spreads and client rates (Greece)
New time deposits spreads and client rates (Greece) Time deposit client rates (bps) Deposits mix 139 Core 56% 126 Time 44% 114 106 105 103 97 100 99 92 97 New time deposit spreads (bps) 91 89 92 89 88 86 87 88 88 82 85 86 80 80 77 75 76 (102) (101) (102) 74 (104) (102) 76 75 (114) (109) (99) (100) 7
Slide 14: Net interest income
Net interest income NII breakdown (€ m) NII per region (€ m) Total NII 383 388 389 389 381 383 388 389 389 381 104 106 104 107 108 International Greece 282 285 282 274 279 496 487 480 Loan margin 470 442 1Q16 2Q16 3Q16 4Q16 1Q17 NII evolution q-o-q (€ m) 7 0 3 2 4 389 1 381 Bonds & other 47 55 49 51
Slide 15: Spreads & net interest margin
Spreads & net interest margin Lending spreads (Greece, bps)1 Deposit spreads (Greece, bps) 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Corporate 525 507 511 524 516 Savings & Sight (48) (56) (53) (53) (51) Retail 455 460 447 435 416 Time (108) (104) (103) (96) (90) Total 480 477 470 467 451 To
Slide 16: Commission income
Commission income Commission income breakdown (€ m) Commission income per region (€ m) Fees excl. €m 84 81 81 85 82 Govt. bps 47 46 47 51 50 guarantees expense 82 80 68 82 76 71 76 80 71 Int’l 68 21 28 25 24 18 Lending 20 19 27 27 25 34 Network 32 34 37 37 Greece 8 54 55 6 6 5 Capital Markets 49 3 4
Slide 17: Operating expenses
Operating expenses OpEx per region (€ m) OpEx breakdown (€ m) Greece (4.9%) 253 250 253 (3.4%) 247 242 245 245 66 67 20 19 Depreciation 66 61 66 International 95 88 Administrative 188 183 182 181 178 Greece Staff 138 137 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 1Q17 Cost-to-income ratio (%) Headcount and netwo
Slide 18: Asset Quality
Asset Quality | Page 17
Slide 19: NPEs formation per segment (Greece)
NPEs formation per segment (Greece) Mortgages (€ m) Consumer (€ m) 315 278 100 35 38 22 28 (7) (2) (9) 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Small business (€ m) Corporate (€ m) 139 71 51 14 12 (27) (15) (24) (36) (67) 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Page 18
Slide 20: NPEs analysis (Greece)
NPEs analysis (Greece) Δ stock NPEs (€ m) Retail portfolio 512 PEs NPEs Performing Non - Performing € 9.4 bn € 9.2 bn 109 112 (155) Non- Performing Forborne 90dpd (254) Δ stock NPEs Performing Forborne € 2.0 bn € 4.1 bn Non- Performing Forborne 0-89dpd € 2.9 bn 513 Corporate portfolio 388 190 NPE fo
Slide 21: NPEs metrics (Group)
NPEs metrics (Group) 90dpd bridge to NPEs (€ bn) NPEs per region Provisions & Provisions/ Total NPEs NPEs ratio4 collaterals / NPEs NPEs 0.7 22.6 (€ bn) (%) (%) (%) 4.4 Consumer 3.4 64.5 79.6 84.5 17.5 Mortgages 6.4 40.0 33.9 105.4 Small Business 4.4 67.6 43.6 98.5 Total Retail 14.2 51.1 47.9 98.2 C
Slide 22: Asset quality metrics - 90dpd loans
Asset quality metrics - 90dpd loans 90dpd ratio per segment (%) 90dpd ratio per region (%) €3.0bn €5.1bn €3.7bn €5.7bn €17.5bn 37.5 37.6 37.7 38.0 37.7 Greece 51.8 47.8 34.8 34.7 34.8 34.7 34.8 Group 34.8 28.5 30.0 19.6 17.7 International 17.5 17.3 16.9 1Q16 2Q16 3Q16 4Q16 1Q17 Consumer Mortgages Sm
Slide 23: 90dpd formation per segment (Greece)
90dpd formation per segment (Greece) Mortgages (€ m) Consumer (€ m) 245 221 216 135 171 160 84 82 83 138 72 129 54 55 66 119 115 118 43 41 35 35 36 109 94 17 22 84 84 82 72 73 (12) (9) (20) 22 8 (39) 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17
Slide 24: International operations
International operations Page 23
Slide 25: International presence
International presence Total Assets (€ bn) 1.6 Net Loans (€ bn) 0.4 Deposits (€ bn) 1.4 Total Assets (€ bn) 1.3 Net Loans (€ bn) 0.8 Deposits (€ bn) 0.7 Total Assets (€ bn) 2.8 Branches (#) 80 Net Loans (€ bn) 1.7 Deposits (€ bn) 1.9 Branches (#) 147 Total Assets (€ bn) 3.4 Net Loans (€ bn) 2.3 Tota
Slide 26: Income statement highlights
Income statement highlights Core PPI (€ m) Pre Provision Income (€ m) 87 1Q16 12 3 2Q16 8 75 75 18 70 ROM 2 67 3 3Q16 7 4 LUX 16 8 3 4Q16 10 23 19 20 CYP 1Q17 9 7 8 7 33 7 SER 1Q16 25 32 2Q16 29 30 31 29 BUL BUL 3Q16 30 25 4Q16 31 16 ROM 8 11 11 1Q17 28 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 7 Net Profit bef
Slide 27: Gross Loans
Gross Loans Romania (€ m) Bulgaria (€ m) 2,654 2,604 2,530 2,558 2,580 368 361 353 2,244 357 354 2,093 Consumer 14% 2,046 2,081 2,080 18% 528 Consumer 359 370 366 367 871 868 861 53% 48% 862 862 Mortgage 33% 733 716 716 710 Mortgage 34% 725 3M17 1,415 3M17 1,375 1,311 1,341 1,365 Business 983 962 10
Slide 28: Deposits
Deposits Romania (€ m) Bulgaria (€ m) 2,675 2,715 2,813 2,812 2,623 901 920 899 969 937 1,850 1,893 1,887 1,939 1,852 Time 32% 1,128 1,110 1,074 976 47% 1,117 Time 53% 68% 1,737 1,814 1,893 1,913 Core 1,654 733 765 777 865 876 Core 3M17 3M17 3M16 6M16 9M16 FY16 3M17 3M16 6M16 9M16 FY16 3M17 Serbia (
Slide 29: Asset quality
Asset quality Romania Bulgaria 73.4% 73.9% 74.5% 62.8% 64.3% Coverage 67.2% 72.0% 59.7% 60.4% 60.3% Coverage 31.7% 90dpd 26.6% 25.7% 25.8% 25.8% 20.1% 19.9% 20.1% 19.5% 18.9% 90dpd 90dpd gross 90dpd gross formation 1 formation (€ m) - 2 - (€ m) (4) (2) (4) (1) (2) (5) 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2
Slide 30: Key figures – 1Q17
Key figures – 1Q17 Romania Bulgaria Serbia Cyprus Lux Sum Assets 2,767 3,357 1,290 4,481 1,618 13,513 Gross loans 2,080 2,580 921 1,516 419 7,516 Balance Sheet (€m) Net loans 1,681 2,266 814 1,451 418 6,630 Balance 90dpd Loans 536 489 151 91 2 1,270 Sheet Deposits 1,852 2,811 740 3,932 1,379 10,714
Slide 31: Appendix I – Supplementary information
Appendix I – Supplementary information Page 30
Slide 32: Income statement highlights (Greece)
Income statement highlights (Greece) Operating income (€ m) Operating expenses (€ m) 390 365 374 372 364 188 183 182 181 179 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Net Profit before discontinued operations, restructuring Provision charge (€ m) costs & tax adj.1 (€ m) 171 90 160 161 155 14
Slide 33: Summary performance
Summary performance Balance sheet – key figures Income statement – key figures €m 1Q17 4Q16 €m 1Q17 4Q16 Gross customer loans 50,210 50,655 Net interest income 381.2 388.7 Provisions (11,469) (11,598) Commission income 79.9 82.2 Net customer loans 38,741 39,058 Operating income 501.2 526.0 Customer
Slide 34: Consolidated quarterly financials
Consolidated quarterly financials Income Statement (€ m) 1Q17 4Q16 3Q16 2Q16 1Q16 Net Interest Income 381.2 388.7 388.9 387.7 382.8 Commission income 79.9 82.2 76.4 71.3 67.8 Other Income 40.1 55.1 31.3 67.4 63.5 Operating Income 501.2 526.0 496.6 526.5 514.1 Operating Expenses (244.5) (242.0) (247.
Slide 35: Consolidated financials
Consolidated financials Income Statement (€ m) 1Q17 1Q16 Δ y-o-y (%) Net Interest Income 381.2 382.8 (0.4) Commission income 79.9 67.8 17.7 Other Income 40.1 63.5 (36.8) Operating Income 501.2 514.1 (2.5) Operating Expenses (244.5) (253.0) (3.4) Pre-Provision Income 256.6 261.1 (1.7) Loan Loss Provi
Slide 36: Appendix II – Macroeconomic update
Appendix II – Macroeconomic update Page 35
Slide 37: Key points and summary of views
Key points and summary of views Recent macro developments Real GDP contracted by -0.1 QoQ% and -0.5 YoY% in Q1 2017 reflecting increased uncertainty about the 2nd review outlook Improving domestic labor market conditions, with the jobless rate hitting a 54-month low of 23.2% (February 2017) FY
Slide 38: Flat real GDP growth in 2016
Flat real GDP growth in 2016 Private consumption counterbalances negative contribution from other components Gross Domestic Product, % YoY Private Consumption, % YoY Government Consumption, % YoY 70.5% of nominal 19.6% of nominal GDP in 2016 GDP in 2016 Gross (Fixed) Capital Formation, % YoY Exports
Slide 39: Selected indicators of domestic economic activity
Selected indicators of domestic economic activity Retail trade, industrial output picked up pace in Q1 2017 Economic Sentiment Indicator: bounced back in April, after temporary PMI manufacturing: slight uptick in April, but still below the slowdown earlier this year boom-bust threshold of 50 points
Slide 40: Domestic labour market
Domestic labour market Conditions improving lately, but serious challenges remain Unemployment rate: still elevated despite recent declines Long term unemployment: a drain in human capital stock 27.9% in Jul-2013 40.4% in 23.2% in 2009 Q4 72.0% in Feb-2017 2016 Q4 Labour productivity growth: improve
Slide 41: Activity in tourism and shipping industries
Activity in tourism and shipping industries Held back GDP growth in 2016, but upbeat expectations for this year Revenues from services exports (% of GDP) Tourism revenue: rising contribution to GDP growth Transportation revenue: steep declines in 2015 & 2016 Net exports had a negative contribution
Slide 42: Greece: recent fiscal performance & 2017 outlook
Greece: recent fiscal performance & 2017 outlook 2016 marked the 4th consecutive year of a surplus position in the general government primary fiscal balance 2016 primary surplus at 4.2% of GDP, up from 0.5% of GDP in 2015, significantly outperforming the 0.5% of GDP ESM programme target Budget
Slide 43: Greece outlook 2017
Greece outlook 2017 Macro indicators: realizations & forecasts 2015, €bn 2015 2016 2017 (*) Weaker than expected Q4-16 data and earlier uncertainty Real Real Real over the outlook of the 2nd programme review raise (nominal) (YoY%) (YoY%) (YoY%) downside risks to our earlier real GDP growth forecas
Slide 44: Progress in the privatisation programme
Progress in the privatisation programme Key steps already completed Sale of the 14 Regional Airports Piraeus Port (OLP) privatisation Egnatia Odos Motorway concession tender Sale of Astir Palace Vouliagmenis SA Invitation for the engagement of advisors for the sale of a 23% share of Thessa
Slide 45: Preliminary technical agreement on 2nd programme review
Preliminary technical agreement on 2 nd programme review Positive step towards a comprehensive deal Reduced pension expenditure: Projected net savings 1%-of-GDP mainly via the elimination of Reform package to be the personal differences; to be implemented in 2019 implemented in 2019-2020 Broadened p
Slide 46: Greece - Timeline of key dates & events in the period ahead
Greece - Timeline of key dates & events in the period ahead Source: EU Commission, ECB, Press, Economic Research Page 45
Slide 47: Appendix III – Glossary
Appendix III – Glossary Page 46
Slide 48: Glossary - Methodology
Glossary - Methodology 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 Financial Reporting Standards (IFRS). Additional sources used, include information derived
Slide 49: Glossary – Definition of Financial measures / ratios
Glossary – Definition of Financial measures / ratios Commission income: The total of Net banking fee and commission income and Income from non banking services of the reported period. Other Income: The total of Dividend income, Net trading income, Gains less losses from investment securities and net
Slide 50: Glossary – Definition of Financial measures / ratios
Glossary – Definition of Financial measures / ratios Cost of Risk: Impairment losses on Loans and Advances charged in the reported period, annualized and divided by the average balance of Loans and Advances to Customers. The average balance of Loans and Advances to Customers is calculated as the ari
Slide 51: Glossary – Definition of Financial measures / ratios
Glossary – Definition of Financial measures / ratios Loans to Deposits: Loans and Advances to Customers (net of Impairment Allowance) divided by Due to Customers at the end of the reported period. Risk-weighted assets (RWAs): Risk-weighted assets are the bank's assets and off-balance-sheet exposures
Slide 52: Investor Relations contacts
Investor Relations contacts Dimitris Nikolos +30 210 3704 764 E-mail: dnikolos@eurobank.gr Yannis Chalaris +30 210 3704 744 E-mail: ychalaris@eurobank.gr Christos Stylios +30 210 3704 745 E-mail: cstylios@eurobank.gr E-mail: investor_relations@eurobank.gr Fax: +30 210 3704 774 Internet: www.eurobank