Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2014 Earnings Presentation
39 slides from Attijariwafa Bank Sa's earnings presentation, December 2014
Slide 1: Results Presentation as of 31 December 2014
RESULTS PRESENTATION As of 31 December 14 Attijariwafa bank – Results at 31 December 2014 1
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2014 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 31 December 2014 2
Slide 3: Macro-economic environment in 2014: Africa
Macro-economic environment in 2014 Africa Economic trends in Africa Real GDP growth Economic growth in Africa : 4.8% in 2014E vs. 3.9% in 2013, driven by domestic demand, infrastructure and regional trade 2013 2014E 2015F North Africa: Africa 3.9% 4.8% 4.8% GDP growth rate of 3.1% in 2014E vs. 1.9%
Slide 4: Macro-economic environment in 2014: Morocco (1/2)
Macro-economic environment in 2014 X% Non agricultural GDP growth rate Morocco (1/2) Real GDP growth Economic growth GDP growth of 2.6% in 2014F : 4.5% 4.9% 4.4% 2.3% 3.4% 4.1% 5.0% - Improvement of non agricultural activity (3.4% in 2014 4.8% 4.4% vs 2.3% in 2013) and positive 2015 outlook (4.1%) 3
Slide 5: Macro-economic environment in 2014: Morocco (2/2)
X% CAGR 09/14 Macro- economic environment in 2014 X% Growth rate 13/14 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 113.4 billion (MAD -0.1% +5.9% -7.5%
Slide 6: Moroccan financial market (1/2)
X% CAGR Moroccan financial market (1/2) X% Growth rate Financial market trends 2014 Yield curve trend between 2012 and 2014 5.94% Sharp Movements in Yield Curve 5.62% Significant decrease of government bond 4.82% 5.04% yields in 2014: 4.91% 4.39% 4.44% - 52w: -130 pbs 3.59% 3.92% 3.70% 4.14% 3.76% 4
Slide 7: Moroccan financial market (2/2)
X% CAGR Moroccan financial market (2/2) X% Growth rate Financial market trends in 2014 Trading volumes down in 2014 from an Stock market: Capitalization and volume already low base: MAD billion Trading volume / Market cap 20% YoY decline in volume of transactions 40% 14% 14% 10% traded on the Casabl
Slide 8: Macro-economic environment in 2014: Tunisia - Senegal
Macro-economic environment in 2014 Tunisia - Senegal Tunisia: Real GDP growth Tunisia GDP growth of 2.4% in 2014F following a growth of 5.3% 2.3% in 2013 (+3.6% en 2012) 3.6% 3.7% 5.7% inflation in 2014F lower than 2013 (6.1%) 3.1% 2.9% 2.3% 2.4% The average key interest rate stood at 4.8% in 2014 v
Slide 9: Moroccan banking sector
X% CAGR Moroccan banking sector X% +/- Deposits YoY growth of +7% compared to +3% between 2012 and 2013 Banking sector growth Slow-down in loans growth (+2% between 2014 and 2013 vs. +3% as of December, 2014 between 2012 and 2013 and +14% p.y. between 2006 and 2012): - Deposits-Loans deficit of MAD
Slide 10: Moroccan banking sector: loans growth and market shares
AWB market shares in Morocco YoY growth Moroccan banking sector X% CAGR Focus on loans growth between 2008 and 2014 X% +/- Retail loans(1) (MAD billion) Retail loans: YoY growth +11% +5% +7% 24.73% 24.25% 24.68% 24.23% 24.03% 22.88% 23.38% 23.50% 23.39% 206 220 196 128 12% 11% 11% 10% 10% 7% 7% 5% 3
Slide 11: Focus on NPL ratio in Morocco
Focus on NPL ratio in Morocco NPL ratio 19.62% 11.68% 8.61% 7.01% 6.33% 6.00% 6.03% 5.04% 4.94% 4.99% 5.03% 4.22% 4.29% 3.04% 3.55% 3.22% 3.27% 2.99% 2004 2007 2008 2009 2010 2011 2012 2013 2014 Banking sector AWB Decrease of the NPL ratio in Morocco from 19.62% in 2004 to 4.99% in 2012 thanks to a
Slide 12: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2014 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 31 December 2014 12
Slide 13: Attijariwafa bank Group key figures as of December 31, 2014
Attijariwafa bank Group key figures as of December 31, 2014 Total assets: MAD 401.8 bn NBI: MAD 19.4 bn 16,716 employees +4.2% +8.8% +635 employees +3.9% Total savings*: MAD 356.8 bn Gross operating MAD 10.9 bn 3,331 branches income: +13.0% +10.2% +4.2% Deposits : +8.5% +134 branches Total loans: MA
Slide 14: Lower cost-income ratio and higher cost of risk
IFRS consolidated financial statements as of December 31, 2014 Lower cost-income ratio and higher cost of risk Cost-Income ratio Cost of risk 44.5% -71 bps +42 bps 43.7% 1.13% 0.71% Dec-13 Dec-14 Dec-13 Dec-14 Improvement in cost-income ratio despite Increase of cost of risk to 1.13% (+42 bps) the v
Slide 15: Profitability ratios in line with best standards
IFRS consolidated financial statements as of December 31, 2014 RoE Profitability ratios in line with -0.8 pt best standards 15.4% 14.6% Shareholders’ equity up 7% YoY and RoA 2013 2014 stable : - Shareholders' equity growth (+6.5% YoY) RoA outpaced total assets growth (+4.2% YoY) - RoE down -0.8 poi
Slide 16: Superior Operating Performance
Superior Operating Performance NBI Growth Efficiency Ratios (Cost-Income ratio) 48.1% 45.3% 45.1% 44.2% 43.8% 44.5% 25% 43.7% 19% 21% 40.8% 11% 9% 8% 7% 5% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 AWB has managed to sustain a strong NBI growth Improvement of co
Slide 17: Conservative Approach to Capital Management
5 Conservative Approach to Capital Management All Data Based on Basel II RWA Growth (MAD billion) Core Tier 1 Ratio (%) 09-1H14 CAGR 9.9 9.8 10.0 AWB is fully compliant 9.1 with the requirements of its local regulator (Bank 304.6 6.1% 7.8 7.9 Al Maghrib) which are 288.0 287.8 7.3 amongst the most 27
Slide 18: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2014 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 31 December 2014 18
Slide 19: Consolidated NBI growth of +8.8%
IFRS consolidated financial statements as of December 31, 2014 Consolidated NBI growth of +8.8% NBI in MAD billion Strong growth in NBI: +8.8% +4% on net interest income 17.9 19.4 +4% on net fee income +8.8% +41% on income from capital market activities: mainly due to the decrease of Sovereign Moroc
Slide 20: Contributions to consolidated NBI by activity
IFRS consolidated financial statements as of December 31, 2014 Structure of NBI as of December, 2014 Contributions to consolidated NBI by (9%) activity as of December 31, 2014 7% (12%) 11% (54%) 56% 26% (26%) Change in the NBI structure: (xx%) Structure December 2013 +2.4 pts for Banking in Morocco,
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 +13.4% +8.3% 11.1 9.8 4.8 5.2 NBI (In MAD billion) 2013 2014 2013 2014 17.9 19.4 +8.8% Specialised Financial Insurance 2013 2014 Subsidiaries In MAD billion In MAD billion +2.7% -12.1% 2.1
Slide 22: Contributions to consolidated NIGS by activity
IFRS consolidated financial statements as of December 31, 2014 Structure of NIGS as of December, 2014 Contributions to consolidated NIGS 13% (11%) by activity as of December 30, 2014 11% (11%) 60% (57%) 16% (21%) Change in the NIGS structure: (xx%) Structure December 2013 +3.6 pts for Banking in Mor
Slide 23: Growth of NIGS by business lines
Growth of NIGS by business lines x% Growth rate BMET in MAD million Insurance In MAD million +11.8% +21.3% 2,624 2,348 458 556 NIGS (in MAD million) 2013 2014 2013 2014 4,141 4,355 +5.2% International Retail Banking Specialised Financial 2013 2014 In MAD million Companies In MAD million -21.5% +5.4%
Slide 24: 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 Specialised Financial 44.5% 42.0% Subsidiaries In MAD million 4,366 4,675 40.9% 41.6% +7% +5% 877 919 Operating expenses (in MAD million) 44.5% 43.7% 2013 2014 2013 2014 8,509 7,948 +7% Interna
Slide 25: 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 Specialised Financial 0.86% 1.15% Subsidiaries In MAD million 2,110 0.93% 0.70% +34% 243 -21% 1,577 192 Cost of risk (in MAD million) 0.71% 1.13% 2013 2014 2013 2014 3,034 1,867 +63% International Retail Banking I
Slide 26: Growth of NPL ratio and coverage ratio by business lines
Growth of NPL ratio and coverage ratio Xpt +/- by business lines BMET NPL ratio Coverage ratio +0.6pt +7.7pts 67.1% 59.4% 4.7% 5.3% NPL ratio +0.5pt Dec-13 Dec-14 Dec-13 Dec-14 6.3% 6.8% Specialised Financial Subsidiaries NPL ratio Coverage ratio -0.3pt 74.8% +0.7pt 75.5% Dec-13 Dec-14 8.0% 7.7% Cov
Slide 27: Main contributors to net banking income in 2014
Main contributors to net banking income in 2014 in MAD million Subsidiaries Contribution 2014 Contribution weight Growth Rate Attijariwafa bank 10,440 52.4% 14.4% Attijari bank Tunisie 1,403 7.0% 5.0% Wafa Assurance 1,388 7,0% -12.1% Wafasalaf 1,022 5,1% -1.1% CBAO (Senegal) 925 4,6% 3.9% SIB (Ivory
Slide 28: Main contributors to net income group share in 2014
Main contributors to net income group share in 2014 in MAD million Subsidiaries Contribution 2014 Contribution weight Growth Rate Attijariwafa bank 2,617 60.1% 15.2% Wafa Assurance 556 12.8% 21.4% Attijari bank Tunisie 236 5.4% -18.8% Wafasalaf 176 4.0% 10.2% CDC (Congo) 122 2.8% 14.0% Wafacash 108
Slide 29: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2014 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 31 December 2014 29
Slide 30: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-09 to 02-26-15 Base 100 MASI ATTIJARIWAFA BANK Dec 09 2011 Share price as of 31 December 2015 2010 AWB : -14.0% AWB :+9.6% 2014: MAD 344.0 MASI : -12.9% MASI: +8.8% 2012 2014 170 AWB : +50.7% MASI : +21.2% AWB : -10.6% AW
Slide 31: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2012 12/31/2013 12/31/2014 Share price 313 305 344 Year High 377 345 349 Year Low 304 300 303.3 P/B (*) 2.04x 1.87x 1.97x P/E (*) 14.00x 14.99x 16.08x DY 2.88% 3.11% 2.91% Number of shares 201,243,086 203,527,226 203,527,226 Market capitali
Slide 32: Back up
Back up Attijariwafa bank – Results at 31 December 2014 32
Slide 33: 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 34: 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 35: RoA by business line between 2007 and 2014
RoA by business line between 2007 and 2014 xx% Contribution to total assets (end of period) 72% 67% 67% 66% 68% 67% 66% 1.3% 1.4% 1.2% BMET 1.1% 1.1% 1.0% 0.9% 2008 2009 2010 2011 2012 2013 2014 13% 18% 18% 19% 18% 20% 20% 1.9% 1.6% 1.7% 1.6% 1.3% 1.4% BDI RoA 1.0% 1.6% 1.5% 1.5% 1.4% 1.4% 1.3% 1.3%
Slide 36: Net interest margin by business line between 2007 and 2014
Net interest margin by business line between 2007 and 2014 xx% Contribution to customer loans (end of period) 74% 72% 72% 72% 72% 71% 70% 4.2% 3.9% 3.8% 3.8% 3.6% 3.7% 3.7% BMET 2008 2009 2010 2011 2012 2013 2014 Net interest margin/ customer loans (end of period) 13% 16% 16% 17% 17% 18% 19% 4.5% 4.
Slide 37: Net fee income by business line between 2007 and 2014
Net fee income by business line between 2007 and 2014 xx% Contribution to net banking income 60% 58% 56% 54% 55% 54% 56% 22.9% 19.6% BMET 18.5% 19.1% 18.7% 18.2% 16.2% 2008 2009 2010 2011 2012 2013 2014 Net fee income/ Net banking income 15% 16% 22% 24% 25% 26% 26% 35.0% 34.7% 36.7% 36.3% 36.8% 36.0
Slide 38: Cost-Income ratio by business line between 2007 and 2014
Cost-Income ratio by business line between 2007 and 2014 60% 58% 56% 54% 55% 54% 56% xx% Contribution to net banking income 47.0% 44.1% 43.1% 44.5% 41.5% 41.9% 42.0% BMET 2008 2009 2010 2011 2012 2013 2014 15% 16% 22% 24% 25% 26% 26% 58.2% 60.1% 61.3% 57.2% 56.3% 55.9% 53.7% BDI Cost-Income ratio 44
Slide 39: Cost of risk by business line between 2007 and 2014
Cost of risk by business line between 2007 and 2014 xx% Contribution to gross customer loans (end of period) 73% 70% 71% 71% 71% 70% 69% 1.15% BMET 0.86% 0.37% 0.33% 0.37% 0.38% 0.17% 2008 2009 2010 2011 2012 2013 2014 Cost of risk 14% 17% 17% 18% 17% 19% 19% 1.13% 1.32% 1.04% 0.71% 0.83% 0.70% BDI