Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2015 Earnings Presentation
41 slides from Attijariwafa Bank Sa's earnings presentation, June 2015
Slide 1: Results Presentation as of 30 June 2015
RESULTS PRESENTATION As of 30 June 15 Attijariwafa bank – Results at 30 June 2015 1
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2015 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 30 June 2015 2
Slide 3: Macro-economic environment in 2015: Africa
Macro-economic environment in 2015 Africa Economic trends in Africa Real GDP growth Economic growth in Africa : 4.5% in 2015F vs. 3.9% in 2014, driven by private consumption and infrastructure investment on 2014 2015F 2016F the demand side and agriculture, extractive industries, construction and ser
Slide 4: Macro-economic environment in 1H-2015: Morocco (1/2)
Macro-economic environment in 1H-2015 X% Non agricultural GDP growth rate Morocco (1/2) Real GDP growth Economic growth GDP growth of 4.3% in 2015F : 4.5% 4.9% 4.4% 2.3% 3.1% 2.5% - Agricultural GDP growth rate of 13.2% in 2015F thanks to a 5.0% higher cereal harvest (115 million quintals in 2015) c
Slide 5: Macro-economic environment in 1H-2015: Morocco (2/2)
X% CAGR 09/14 Macro- economic environment in 1H-2015 X% Growth rate 1H-2014/1H-2015 Morocco (2/2) Trends in Balance of payments' main Balance of payments components (MAD billion) Significant improvement of Trade balance deficit +6% +7% +3% +3% (goods and services: G&S) to MAD 40.7 billion (MAD -26.5
Slide 6: Moroccan financial market
X% CAGR Moroccan financial market X% Growth rate Financial market trends June 2015 Yield curve trend between December 2013 5.94% and June 2015 5.62% Stable Yield Curve Stable government bond yields in June 2015 vs 4.91% December 2014 4.39% 4.10% 3.92% 3.59% 3.60% 3.47% 4.00% 3.23% 2.75% 3.44% 2.62%
Slide 7: Macro-economic environment in 1H-2015: Tunisia - Senegal
Macro-economic environment in 1H-2015 Tunisia - Senegal Tunisia: Real GDP growth Tunisia GDP growth of 3.0% in 2015F following a growth of 5.3% 2.3% in 2014 and in 2013 3.7% 5.0% inflation in 2015F almost the same level than 3.1% 2.9% 3.0% 2.3% 2.3% 2014 (4.9%) The average key interest rate stood at
Slide 8: Moroccan banking sector
X% CAGR Moroccan banking sector X% +/- Banking sector growth as of June 30, 2015 Trend in customer deposits Deposits YoY growth of +7% compared to +6% in MAD billion between 2013 and 2014 +4% +6% +7% 722 697 743 Slow-down in loans growth (+1% between 1H-2014 680 564 and 1H-2015 vs. +2% between 2013
Slide 9: Moroccan banking sector: loans growth
AWB market shares in Morocco YoY growth Moroccan banking sector X% CAGR Focus on loans growth between 2008 and June 2015 X% +/- Retail loans(1) (MAD billion) Retail loans: YoY growth +10% +6% +7% 23.50% 24.73% 24.25% 24.68% 24.23% 24.03% 23.38% 23.42% 23.31% 219 211 225 206 128 11% 11% 10% 10% 7% 6%
Slide 10: Focus on NPL ratio in Morocco
Focus on NPL ratio in Morocco NPL ratio 19.62% 11.68% 8.61% 6.92% 7.36% 6.33% 6.00% 6.03% 5.04% 4.94% 4.99% 4.90% 5.12% 4.22% 4.29% 3.04% 3.55% 3.22% 3.27% 2.99% 2004 2007 2008 2009 2010 2011 2012 2013 2014 June-15 Banking sector AWB Deterioration of the banking sector NPL ratio between December 201
Slide 11: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2015 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 30 June 2015 11
Slide 12: Attijariwafa bank Group key figures as of June 30, 2015
Attijariwafa bank Group key figures as of June 30, 2015* BMET: -5.0% SFS : +6.0% IRB : +10.8% (+11.4% at a constant exchange rate) Total assets: MAD 403.7 bn NBI: MAD 9.8 bn 16 970 employees -0.8% +0.0% +684 employees +4,2% Total savings**: MAD 374.4 bn Gross operating MAD 5.4 bn 3,376 branches inco
Slide 13: Lower cost of risk and higher cost-income ratio
IFRS consolidated financial statements as of June 30, 2015 Lower cost of risk and higher cost-income ratio Cost-Income ratio Cost of risk +227 bps -30 bps 43.8% 44.5% 1.17% 42.2% 0.87% 0.74% June-13 June-14 June-15 June-13 June-14 June-15 Deterioration of cost-Income ratio mainly Decrease of cost of
Slide 14: NPLs, coverage and cost of risk
IFRS consolidated financial statements NPLs, coverage and cost of risk NPL ratio Cost of risk 113 bps 6.8% 7.1% 6.3% 6.6% 87 bps 71 bps 47 bps Dec-13 June-14 Dec-14 June-15 Average Dec-13 Dec-14 June-15 2007-2012 Coverage ratio +0.7 pt Proactive, conservative and anticipatory +4.5 pts risk managemen
Slide 15: Profitability ratios in line with best standards
IFRS consolidated financial statements as of June 30, 2015 RoE Profitability ratios in line with -0.4 pt best standards 15.0% 14.6% Shareholders’ equity up 6% YoY and RoA June-14 June-15 stable : - Shareholders' equity growth (+5.9% YoY) RoA outpaced total assets growth (-0.8% YoY) - RoE down -0.4 p
Slide 16: Superior Operating Performance
Superior Operating Performance NBI Growth Efficiency Ratios (Cost-Income ratio) 48.1% 45.3% 45.1% 44.2% 44.5% 44.5% 25% 43.8% 43.7% 21% 19% 40.8% 11% 8% 7% 9% 5% 0%* 2007 2008 2009 2010 2011 2012 2013 2014 June-15 2007 2008 2009 2010 2011 2012 2013 2014 June-15 Cost of Risk (in bps) RoE and RoA RoE
Slide 17: Conservative Approach to Capital Management
Conservative Approach to Capital Management RWA Growth (MAD billion)2 Core Tier 1 Ratio (%)2 09-14 10.32 CAGR 9.9 10.02 9.1 AWB is fully compliant 9.0% with the requirements of 306.1 7.8 7.9 its local regulator (Bank 5.6% 7.3 Al Maghrib) which are 288.0 287.8 amongst the most 31.7 9.5% 276.7 stringe
Slide 18: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2015 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 30 June 2015 18
Slide 19: Stable consolidated NBI growth
IFRS consolidated financial statements as of June 30, 2015 Stable consolidated NBI growth NBI in MAD billion Stagnation of the NBI: 9.8 9.8 +7% on the net interest income +3% on the net fee income +0.0% -19% on income from capital market activities : mainly due to non-recurring revenues in 1H-2014 J
Slide 20: Contributions to consolidated NBI by activity
IFRS consolidated financial statements as of June 30, 2015 Structure of NBI as of June, 2015 Contributions to consolidated NBI by (7%) activity as of June 30, 2015 9% (11%) 11% (56%) 54% 26% (25%) Slight change in the NBI structure: (xx%) Structure June 2014 -2.4 pts for Banking in Morocco, Europe &
Slide 21: Growth of NBI by business lines
Growth of NBI by business lines x% Growth rate BMET International Retail Banking In MAD billion In MAD billion 5.6 +6.4% at a -3.9% 5.4 +3.8% constant exchange 2.5 rate 2.6 NBI (In MAD billion) June-14 June-15 June-14 June-15 9.8 9.8 +0.0% Specialised Financial Insurance June-14 June-15 Subsidiaries
Slide 22: Contributions to consolidated NIGS by activity
IFRS consolidated financial statements as of June 30, 2015 Structure of NIGS as of June, 2015 Contributions to consolidated NIGS (13%) 13% by activity as of June 30, 2015 11% (11%) 60% (60%) 16% (16%) Slight change in the NIGS structure: (xx%) Structure June 2014 -0.8 pt for Banking in Morocco, Euro
Slide 23: Growth of NIGS by business lines
Growth of NIGS by business lines x% Growth rate BMET in MAD million International Retail Banking In MAD million +1.0% 1,365 1,378 +6.0%* 358 371 +3.8% NIGS (in MAD million) June-14 June-15 June-14 June-15 * at a constant exchange rate 2,261 2,312 +2.2% Specialised Financial Insurance In MAD million
Slide 24: Growth of Cost of Risk by business lines
Growth of Cost of Risk by business lines x% Growth rate X% CoR (%) BMET In MAD million International Retail Banking 1.23% 0.82% In MAD million 1,156 1.15% 0.98% -36.0% 740 292 274 -6.2% Cost of risk (in MAD million) 1.17% 0.87% June-14 June-15 June-14 June-15 1,568 1,163 -25.9% Specialised Financial
Slide 25: Customer loans, NPL ratio and coverage ratio by business line
Growth of customer loans, NPL ratio X +/- and coverage ratio by business lines Specialised Financial International BMET AWB (Consolidated loans) Subsidiaries Retail Banking Customer loans (MAD bn) Customer loans (MAD bn) Customer loans (MAD bn) Customer loans (MAD bn) Loans 182 173 +11.4%* +10.8% 25
Slide 26: Main contributors to net banking income in 1H 2015
Main contributors to net banking income in 1H 2015 in MAD million Subsidiaries Contribution 1H-2015 Contribution weight Growth Rate Attijariwafa bank 5,044 50.4% -4.8% Wafa Assurance 878 8.8% 20.9% Attijari bank Tunisie 727 7.3% 6.1% Wafasalaf 481 4.8% -5.6% CBAO (Senegal) 431 4.3% -8.4% SIB (Ivory
Slide 27: Main contributors to net income group share in 1H-2015
Main contributors to net income group share in 1H-2015 in MAD million Subsidiaries Contribution 1H-2015 Contribution weight Growth Rate Attijariwafa bank 1,357 58.7% -0.4% Wafa Assurance 303 13.1% 6.7% Attijari bank Tunisie 126 5.4% 17.9% Wafasalaf 76 3.3% -11.7% SIB (Ivory-Coast) 59 2.6% 55.2% Wafa
Slide 28: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2015 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 30 June 2015 28
Slide 29: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-09 to 09-08-15 Base 100 MASI ATTIJARIWAFA BANK Dec 09 2011 Share price as of 30 June 2015: 2010 AWB : -14.0% 2015 MAD 350.0 MASI : -12.9% 2012 AWB :-1.1% 2014 MASI: -3.4% 170 AWB : +50.7% AWB : -10.6% MASI : +21.2% MASI :
Slide 30: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2013 12/31/2014 06/30/2015 Share price 305 344 350 Year High 345 349 382 Year Low 300 303.3 342.6 P/B 1.87x 1.97x 1.99x P/E (*) 14.99x 16.08x 15.41x DY 3.11% 2.91% - Number of shares 203,527,226 203,527,226 203,527,226 Market capitalization
Slide 31: Back up
Back up Attijariwafa bank – Results at 30 June 2015 31
Slide 32: Moroccan financial market: stock market activity
X% CAGR Moroccan financial market X% Growth rate Financial market trends in 1H-2015 Stable stock market activity in 1H-2015 Stock market: Capitalization and volume in terms of trading volumes: MAD billion Trading volume / Market cap Moroccan All Shares Index (MASI) 23% 14% 10% 9% 8% decreased slight
Slide 33: Exchange rates trend
Exchange rates trend 11.36 11.32 11.15 11.25 11.17 11.11 11.15 11.23 10.97 10.89 9.85 9.04 8.36 8.57 8.58 8.43 8.10 7.86 8.15 7.71 April 2015: Evolution of the mix of Dirham’s basket of currencies to 60% Euro and 40% US dollar (80% and 20% previously) 2007 2008 2009 2010 2011 2012 2013 2014 1H-15 EU
Slide 34: Growth of Operating expenses by business lines
Growth of Operating expenses by business lines x% Growth rate X% Cost-income ratio (%) BMET In MAD million International Retail Banking 39.7% 43.4% In MAD million 56.2% 56.1% +5.1% 2,231 2,346 1,426 +3.6% 1,477 Operating expenses (in MAD million) 42.2% 44.5% June-14 June-15 June-14 June-15 4,119 4,3
Slide 35: Focus on Basel 3 main impacts in Morocco: Capital Adequacy
Focus on Basel 3 main impacts in Morocco Capital Adequacy Minimum requirements Regulatory capital framework in Morocco (Basel 3) Main impacts on Attijariwafa bank Common shares issued by 5,5% the bank 1 Retained earning and Capital Minimum of 8% of CET1 instead of CET1 accumulated other requirements
Slide 36: Focus on leverage ratios and credit risk mitigation
Focus on leverage ratios and credit risk mitigation AWB leverage1 ratio vs. international benchmark 22,8 21,5 20,4 19,8 17,4 14,0 10,2 12,5 8,4 AWB Tier 1 capital is free of hybrid instruments AWB’s leverage ratio is much lower than international benchmark Santander AWB BMCE Socgen Llyods Commerz Pa
Slide 37: RoA by business line between 2008 and 1H-2015
RoA by business line between 2008 and 1H-2015 xx% Contribution to total assets (end of period) 72% 67% 67% 66% 68% 67% 66% 64% 1.3% 1.4% 1.2% BMET 1.1% 1.1% 1.0% 1.1% 0.9% 2008 2009 2010 2011 2012 2013 2014 June-15 13% 18% 18% 19% 18% 20% 20% 21% 1.9% 1.6% 1.7% 1.6% 1.4% 1.5% 1.3% IRB RoA 1.0% 1.6%
Slide 38: Net interest margin by business line
Net interest margin by business line between 2008 and 1H-2015 xx% Contribution to customer loans (end of period) 74% 72% 72% 72% 72% 71% 70% 68% 4.2% 3.9% 4.1% 3.8% 3.8% 3.6% 3.7% 3.7% BMET 2008 2009 2010 2011 2012 2013 2014 June-15 Net interest margin/ customer loans (end of period) 13% 16% 16% 17%
Slide 39: Net fee income by business line
Net fee income by business line between 2008 and 1H-2015 xx% Contribution to net banking income 60% 58% 56% 54% 55% 54% 56% 54% 22.9% 19.6% BMET 18.5% 19.1% 18.7% 18.2% 16.2% 16.4% 2008 2009 2010 2011 2012 2013 2014 June-15 Net fee income/ Net banking income 15% 16% 22% 24% 25% 26% 26% 26% 35.0% 34.
Slide 40: Cost-Income ratio by business line
Cost-Income ratio by business line between 2008 and 1H-2015 60% 58% 56% 54% 55% 54% 56% 54% xx% Contribution to net banking income 47.0% 44.1% 43.1% 44.5% 43.4% 41.5% 41.9% 42.0% BMET 2008 2009 2010 2011 2012 2013 2014 June-15 15% 16% 22% 24% 25% 26% 26% 26% 58.2% 60.1% 61.3% 57.2% 56.3% 55.9% 56.1%
Slide 41: Cost of risk by business line
Cost of risk by business line between 2008 and 1H-2015 xx% Contribution to gross customer loans (end of period) 73% 70% 71% 71% 71% 70% 69% 67% 1.15% BMET 0.86% 0.82% 0.37% 0.33% 0.37% 0.38% 0.17% 2008 2009 2010 2011 2012 2013 2014 June-15 Cost of risk 14% 17% 17% 18% 17% 19% 19% 21% 1.13% 1.32% 0.8