Slide 1: 2nd quarter 2024 Earnings presentation
2nd quarter 2024 Earnings presentation July 30th 2024
Slide 2: Index
Index 1 Key highlights 2 Business activity 3 Financial results 4 Asset quality 5 Solvency & liquidity 6 Final remarks 2
Slide 3: Key highlights
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Slide 4: Key highlights
Key highlights Business activity Profitability Asset quality Solvency and liquidity Profitability Strong organic capital Improved momentum in We continue reducing improvement in the year generation with 50% business activity NPAs balance keeps improving dividend payout accrual Private sector deposit
Slide 5: Improved structural profitability
Improved structural profitability Strong start of the year allows for an improvement in ROTE guidance to above 10% for 2024 Profit before tax (€m) Adjusted ROTE (1) (Last 12 months %) 53 432 >10% 175 9% 20 137 223 4% 5% 74 294 148 +21% +5% -30% PBT 1H23 Revenues Costs Provisions PBT 1H24 2022 2023 2
Slide 6: Business activity
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Slide 7: Customer funds
Customer funds Private sector deposits increase by 2.7% YoY and off-balance sheet funds by 2.0% Total customer funds Customer funds on balance € million Breakdown Million Euros 2Q23 1Q24 2Q24 QoQ YoY Customer funds on balance sheet 67,658 66,691 68,177 2.2% 0.8% 6% Public institutions 5,572 4,338 4,
Slide 8: Lending
Lending Performing loan book stabilizes in the quarter Performing loan book Performing loan book € million Breakdown Million Euros 2Q23 1Q24 2Q24 QoQ YoY 8% 10% Public sector 5,072 4,569 4,957 8.5% -2.3% Private sector 46,159 42,959 43,264 0.7% -6.3% 21% Corporate loans 11,424 10,253 9,943 -3.0% -13
Slide 9: New lending
New lending All main lending books delivered improvement in the quarter Total private sector lending Business lending 1,811 1,789 961 1,567 908 913 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 Mortgages Consumer lending 147 774 680 520 135 129 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 9
Slide 10: Digital business
Digital business 70% Digital activity and customer Number of digital acquisition keeps improving customers (1) supported by the improvements in our digital channels and partners 41% Consumer new production through remote channels 29% Mutual funds new production through remote channels 10 (1) Active
Slide 11: Adherence to Responsible Banking Principles
Adherence to Responsible Banking Principles Green 54,800 Tn CO2 avoided in 2023 (+57% vs. 2022) Financial 30% of branches in municipalities of <10,000 inhabitants bonds inclusion 2.9x additional issuance capacity after the early Adhesion to the MIVAU(2) guarantee line through the ICO for 1st redempt
Slide 12: Financial results
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Slide 13: Income statement
Income statement Net income almost doubles in the year on the back of higher revenues and lower provisions P&L statement(1) Main quarterly variations QoQ YoY YtD Million euros 2Q23 1Q24 2Q24 1H23 1H24 (%) (%) (%) NII: Slight increase in cost of deposits in the quarter Net Interest Income 321 390 383
Slide 14: Net interest income
Net interest income Customer spread reduces on the back of slight increase of deposit cost and lending mix Average quarterly yields and costs (%) Yearly evolution 3.88% 4.12% 3.95% 4.90% 3.67% 3.68% 4.00% Euribor 12m -20bps 3.59% 3.55% 3.50% 3.90% 3.35% 3.09% Loan +93pbs 3.00% 2.90% 2.63% 2.50% yiel
Slide 15: Net interest income evolution
Net interest income evolution The increase in deposit costs mainly explains the 1.8% quarterly reduction of NII which improves by 25.7% in the year Net interest income quarterly evolution (€m) 5 3 Retail business: Lower lending 8 volumes and mix effect together with cost of deposits increase in the
Slide 16: Fee income
Fee income Focus on long term customer relationships offering more value added services Net fee income breakdown (€m) Fee income breakdown 2Q24 (%) QoQ YoY YoY Million Euros 2Q23 1Q24 2Q24 1H23 1H24 (%) (%) (%) 7% Payments and accounts 75 70 65 -6.2% -13.2% 148 135 -9.1% Non-Banking fees 59 61 61 -0
Slide 17: Other income
Other income Positively impacted in the quarter by the reduction of regulatory expenses and dividends Other income breakdown (€m) Million Euros 2Q23 1Q24 2Q24 QoQ YoY 1H23 1H24 YoY (%) Dividend income 18 0 8 - -53.1% 18 9 -51.4% Associates 34 25 34 38.6% -1.3% 48 59 22.5% Trading income (0) 1 3 130.
Slide 18: Operating expenses
Operating expenses Cost to income keeps improving on the back of revenues increase above costs Operating expenses (€m) Cost to income (1) (%) 216 225 224 22 22 52% 23 68 67 69 45% 124 135 135 2Q23 1Q24 2Q24 1H23 1H24 Personnel expenses Administrative expenses D&A (1) Cost to income includes D&A expe
Slide 19: Cost of risk and other provisions
Cost of risk and other provisions Maintain a positive trend Loan loss provisions and credit cost of risk (1) (€m) Total provisions evolution (€m) 40 37 34 31 29 179 41 126 4 76 59 62 63 2Q23 3Q23 4Q23 1Q24 2Q24 1H23 1H24 Other provisiones Loan loss provision Other profits or losses 30bps 29bps 27bps
Slide 20: Profitability
Profitability Profitability keeps improving and we raise 2024 adjusted ROTE target to >10% Net income(€m) Return on tangible equity LTM(3)(%) +99% 294 Vs. 1H23 8% 170 148 102 5% 4% 1H21 1H22 1H23 1H24 7% (1) 4% 3% Banking margin (2) (€m) +27% 581 Vs. 1H23 1H22 1H23 1H24 456 ROTE Rote adjusted 297 33
Slide 21: Asset quality
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Slide 22: Non-performing loans
Non-performing loans NPLs keep reducing at steady pace, 3% down in the quarter and 26% in the last twelve months Non-performing loans(€m) Non-performing loans breakdown (%) -26% YoY 1,921 -3% QoQ 1,737 4% 1,568 1,460 1,417 39% 52% 2Q23 3Q23 4Q23 1Q24 2Q24 3.6% 3.4% 3.1% 3.0% 2.9% 4% NPL ratio 66% 66
Slide 23: Non-performing assets
Non-performing assets Foreclosed assets also keep reducing while maintaining high coverage levels Foreclosed assets quarterly evolution (€m) Gross non-performing assets evolution (%) 65% 70% 70% Coverage (%) 36 €138m exits in 2Q24 3,619 2,662 2,502 1,921 1,253 205 NPLs 1,460 1,417 1,085 Foreclosed 1
Slide 24: Solvency & liquidity
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Slide 25: Solvency (I/II)
Solvency (I/II) Positive evolution with an increase of 58 bps mainly explained by organic capital generation CET1 fully loaded (1) quarterly evolution (%) Main positives in the quarter come from organic generation, both net 0.6% 0.2% 0.1% income and a reduction of RWAs 0.3% 15.1% On the negative sid
Slide 26: Solvency (II/II)
Solvency (II/II) Very comfortable capital position with ample regulatory buffers Capital levels versus Capital structure - MREL (fully loaded) current requirements 27.0% SREP requirement 24.2% (Total) 12.75% 4.0% 5.2% 2.8% MREL(1) requirement 24.9% 1.6% 3.1% 1.9% 1.9% MREL ratio 1.7% (phased in) 27.
Slide 27: Fixed income portfolio
Fixed income portfolio Stable portfolio with duration slightly up in the quarter Fixed income portfolio evolution (€bn) Fixed income portfolio breakdown (%) 93% 25.7 26.2 26.3 amort. cost 8% 12% 2Q23 1Q24 2Q24 2.5% 2.6% 2.6% 80% Yield evolution (1) 2.5Y 2.4Y 2.5Y Public debt Sareb Private debt Durat
Slide 28: Liquidity
Liquidity Best in class liquidity metrics with improved customer deposits in the quarter Liquid assets(€m) Main liquidity ratios 11,549 42,458 Loan to deposit 73% 30,909 Net Stable Funding Ratio 157% Liquidity Coverage Ratio 312% Net Liquid Assets Additional capacity to issue Total liquidity Sticky
Slide 29: Final remarks
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Slide 30: Final remarks
Final remarks Structural improvement of the bank allows for better shareholders remuneration Profitability keeps improving >10% 2024E (ROTE(1) adjusted) NPAs keep decreasing at an accelerated pace -11% Gross NPAs (YtD) Solvency continues strengthening 15.1% CET1 fully loaded (+38bps YtD) Dividend +
Slide 31: Appendix
Appendix 3i | Vv
Slide 32: Wholesale funding
Wholesale funding Wholesale funding breakdown and maturities (1) Maturities breakdown (2) 7.0% 11,000 9.0% 6.2% Instrument 2024 2025 2026 >2026 Total 7.0% 9,000 4.6% 3.8% AT1 - - 500 - 500 5.0% 7,000 5,340 3.0% Tier 2 300 - - 600 900 5,000 1.0% Senior non-preferred - - 500 300 800 -1.0% Senior prefe
Slide 33: Lending portfolios
Lending portfolios ICO Loans evolution Corporates portfolio (performing) 4% 2,489 2,076 1,431 1,322 38% 1,145 58% 4Q21 4Q22 4Q23 1Q24 2Q24 Real Estate SMEs & SE Other corporates 33
Slide 34: Credit stages
Credit stages Credit breakdown by stages June 2024 (€m) Stage 1 Stage 2 Stage 3 Gross Balance 45,256 2,964 1,417 Provisions 160 168 607 Coverage level (%) 0.4% 5.7% 42.8% 34
Slide 35: Share and book value
Share and book value Share and liquidity(1,2): 1Q24 2Q24 # O/S shares (m) 2,655 2,655 Last price (€) 1.15 1.27 Max price (€) 1.15 1.35 Min price (€) 0.84 1.11 Avg. daily traded volume (#shares m) 7.42 8.89 Avg. daily traded volume (€ m) 7.04 11.06 Market Capitalization (€ m) 3,045 3,382 Book Value:
Slide 36: Income statement
Income statement Million euros 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 QoQ (%) YoY (%) Net Interest Income 271 267 297 295 321 357 380 390 383 -1.8% 19.6% Dividends 12 3 3 0 18 6 0 0 8 - -53.1% Associates 39 15 23 14 34 15 29 25 34 36.6% -1.3% Net fees 130 131 131 135 134 132 133 130 126 -3.5%
Slide 37: Balance sheet
Balance sheet Million euros 30/06/2023 30/09/2023 31/12/2023 31/03/2024 30/06/2024 Cash on hand, Central Banks and Other demand deposits 6,879 6,846 8,040 10,375 8,388 Assets held for trading & Financial assets at fair value through P&L 203 204 918 601 913 Financial assets at fair value through othe
Slide 38: Important legal information
Imortant legal information This presentation (the Presentation) has been prepared by Unicaja Banco, S.A. (the Company or Unicaja Banco) for informational use only. The recipient of this presentation has the obligation of undertaking its own analysis of the Company. The information provided herein is
Slide 39: Many thanks
Many thanks 2Q24 Earnings presentation