Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q3 2020 Earnings Presentation
28 slides from Unicaja Banco's earnings presentation, Nov 3, 2020
Slide 1: Unicaja Banco 3Q 2020 Results Presentation
Unicaja Banco 3Q 2020 Results Presentation 3rd November 2020 0
Slide 2: Disclaimer
Disclaimer 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 not to be relie
Slide 3: Index
Index Key highlights Results & business Asset quality, liquidity & solvency 2
Slide 4: Index: Key highlights
Index Key highlights Results & business Asset quality, liquidity & solvency 3
Slide 5: Summary of 3Q 2020 results
Summary of 3Q 2020 results Retail customer funds grew +5.1% YoY and +1.3% QoQ, highlighting the growth in the quarter of the off-balance sheet and insurance funds by +2.4%. Business Performing loans to private sector decreased -0.8% YtD, with an increase in corporates of 6.3% and a fall in indiv
Slide 6: Index: Results & business
Index Key highlights Results & business Asset quality, liquidity & solvency 5
Slide 7: Group net profit, without Covid-19 effect, grew 21.7% YoY in 9M20
The Group's net profit, without the effect of the Covid-19 grew 21.7% YoY in 9M20 Profit & loss account (€ million) QoQ Var. € million 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 9M20 9M19 % % Net Interest Income 149 149 145 148 144 142 140 137 150 9.2% 427 437 -2.3% Net Fees 55 56 55 58 58 59 61 5
Slide 8: Retail customer funds grew +1.3% QoQ
Retail customer funds grew +1.3% QoQ, boosted by public administration (+16.4%) and off-balance sheet and insurance funds (+2.4%) Total retail customer funds (€ bn) On-balance sheet customer funds (€ bn) Retail off-BS funds & insurance Sight (private sector) Term (private sector) Retail on-BS funds
Slide 9: Performing loans decreased 0.9% YtD
Performing loans decreased 0.9% YtD, loans to corporates grew +6.3% while loans to individuals have been reduced Gross loans (€ Bn) Performing loans (€ Bn) Total gross loans (ex-reverse repos) -1.1% -0.9% 27.2 26.8 26.5 25.8 26.2 26.5 25.6 1.4 YTD% 1.3 YTD% -4.5% -0.8% 24.1 23.9 -0.8% 24.6 24.1 24.3
Slide 10: Granting activity affected by Covid-19, individuals recovering in Q3
Granting activity affected by Covid-19 impact, lending to individuals showed a recovery in Q3 New lending evolution (€ million) 3,490 716 -25% YOY 2,225 New loan production to 151 1,704 -25% individuals + corporates 1,337 1,070 737 9M 19 9M 20 Public sector Corporates Individuals New lending: Indivi
Slide 11: Net interest income grew +9.2% QoQ
Net interest income grew +9.2% QoQ by improving the cost of both retail and wholesale funding, showing an improvement of customer margin Net interest margin Net interest income bridge 3Q 2020 Quarterly evolution € million 144 142 140 150 149.6 137 137.0 0.3 1.3 11.6 1.02% 1.00% 1.00% 0.93% 0.95% 3Q
Slide 12: Increase in the debt portfolio size due to higher liquidity
Increase in the debt portfolio size due to the higher liquidity (1) Breakdown , size and evolution of the debt portfolio (Fair Value Through OCI, Amortised Cost and SAREB) (1) €bn 21.4 6.3% 3.1% 19.8 1.0% Sovereign Debt 10.3% Other Public Debt Covered bonds Financials Senior 79.1% 2Q20 3Q20 Other Si
Slide 13: Fee income improved +8.1% QoQ
Fee income improved +8.1% QoQ, after the Covid-19 impact in Q2 Net fees (€ million) Fees breakdown (€ million) 9M 2019 9M 2020 % +8.1% 61.2 Fee income 190.1 186.7 -1.8% 58.0 59.2 56.6 52.4 From contingent risk and 7.1 9.0 26.8% commitments From payments and collections 104.6 96.5 -7.8% From brokerag
Slide 14: Operating expenses continue to improve
Operating expenses continue to improve Operating expenses (€ million) Spanish branches evolution -20.6% 1,279 1,227 1,153 1,046 1,015 -7.8% 465.7 454.1 27.5 429.2 32.1 35.8 -5.5% 145.5 131.3 2016 2017 2018 2019 3Q 20 118.9 292.8 290.8 274.5 Employees evolution (FTEs) 9M 18 9M 19 9M 20 -15.8% 7,331 6
Slide 15: Extraordinary Covid-19 provisions of €63m booked in Q3
Extraordinary provisions for Covid-19 of €63m have been booked in Q3, reaching €166m YtD. Total impairments and other results (€ million) Cost of risk – Credit (%) 0.91% 193 128 -78.7% 0.78% 166 77 0.15% (1) (2) (3) 0.10% 0.05% 0.02% 27 0.13% (1) 9M 18 9M 19 9M 20 2017 2018 9M 19 2019 9M 20 Covid-19
Slide 16: Index: Asset quality, liquidity & solvency
Index Key highlights Results & business Asset quality, liquidity & solvency 15
Slide 17: NPL ratio continues to decline 22 bp YtD to 4.6%
Despite the difficult economic environment, the NPL ratio continues to decline 22 bp YtD to 4.6% Non performing loans evolution NPL balances (€ million) NPL ratio (%) (-1,925M€) (-505M€) -5.2% -0.2% 3,215 9.8% 2,710 (-785M€) (-283M€) 8.7% (-575M€) 6.7% 1,926 5.4% 1,573 4.8% 4.6% 1,351 1,290 2016 201
Slide 18: Requests for mitigating measures have moderated
... While requests for mitigating measures have moderated… Corporates Individuals – payments moratoria Consumer loans and ICO lines Mortgages others ~ 8,200 ~ 3,600 approved operations approved operations ~ 11,500 LEGAL(*) ~ €610m ~ €30m approved operations balances balances Expired ~ €265m without
Slide 19: NPL decreasing and coverage improving
… with NPL decreasing and coverage improving by 13.9 p.p. YoY and 5.0 p.p. QoQ Exposure, NPL and coverage NPL collateralization levels Gross exposure NPLs Type of NPLs (€ million) NPLs % Appraisal value1 € million € million Unsecured 166 13% - Secured 1,124 87.1% 2,403 % NPL ratio % Coverage ratio o
Slide 20: Foreclosed assets coverage stable while sales normalise
Foreclosed assets coverage remain stable while volume of sales tend to normal levels Foreclosed assets as at September 2020 (€ million) Released provisions over net book value (%) Provisions TOTAL FORECLOSED ASSETS 13.7 40.7 52.3 96.3 64.3 69.0 17.4 released (€M) Gross Value 1,117 415 Net Value 42.6
Slide 21: NPAs decreased 2.6% YtD, improving Texas ratio
NPAs decreased by 2.6% YtD and 2.2% QoQ, improving Texas ratio Significant decrease of NPAs Non performing assets evolution (€ Bn) -58% 5.8 64% 4.6 -21% NPA coverage 2.6 -22% -11% 3.6 1.9 2.7 2.5 2.4 1.7 1.1 1.1 1.1 3.2 2.7 -2.6% 1.9 1.6 2016 2017 2018 3Q 19 1.4 2019 1.3 3Q 20 1.4% Foreclosed assets
Slide 22: Strong liquidity position
Strong liquidity position Loan to deposits ratio NSFR & LCR Ratio Requirements Unicaja Banco 3Q 2020 71.4% 66.7% NSFR 100% 141% LCR 100% 311% 2019 3Q 20 Liquid Assets Breakdown Wholesale funding maturities – Balances (€M) and costs Liquidity generation capacity (€ million) Covered bonds issuance cap
Slide 23: Reinforcing solvency position, CET1 FL grew 27 bp QoQ
Reinforcing solvency position, CET1 FL grew 27 bp QoQ 3Q 2020 Regulatory solvency pro forma (1) CET1 fully loaded proforma bridge 3Q 2020 (1) 14.7% 0.0% 17.8% 14.4% 0.2% 16.3% CET 1 Total capital CET1 FL 2Q20 RWAs Others CET1 FL 3Q20 3Q 2020 RWAs density 93% 58% €1.264m 39% Total capital excess(1) o
Slide 24: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 23
Slide 25: Additional Information
Appendix Additional Information 24
Slide 26: Additional financial information: Group Balance Sheet
Additional financial information Unicaja Banco Group Balance Sheet Balance sheet €m 3Q 2020 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 1Q 2019 4Q 2018 3Q 2018 2Q 2018 1Q 2018 Cash & equivalents 4,600 7,250 2,366 4,559 2,614 2,040 2,821 4,280 2,766 3,060 2,999 Assets held for trading & at fair value thr
Slide 27: Additional financial information: P&L
Additional financial information P&L Unicaja Banco Group Profit & loss account €m 9M 2020 1H 2020 1Q 2020 2019 FY 9M 2019 1H 2019 1Q 2019 2018 FY 9M 2018 1S 2018 1Q 2018 2017 FY Net Interest Income 427 277 140 579 437 293 145 601 452 303 152 583 Net Fees 170 114 61 231 172 114 55 219 163 108 53 220
Slide 28: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 27