Eurobank S.A. · ATHEX:EUROB

Eurobank — EFG Eurobank Ergasias — Q1 2003 Earnings Presentation

25 slides from Eurobank's earnings presentation, 2003

  1. Slide 1: First Quarter 2003 Results

    EFG a Eurobank Ergasias FIRST QUARTER 2003 RESULTS

  2. Slide 2: Cautionary Statement Regarding Forward-Looking Information

    Cautionary Statement Regarding Forward-Looking Information This presentation may contain projections or other forward – looking statements related to EFG Eurobank Ergasias S.A. that involve risks and uncertainties. Readers are cautioned that these statements represent the Group’s judgments and futur

  3. Slide 3: Hosts and Contents

    Hosts and Contents • Nikolaos Karamouzis, Deputy CEO • Macro & Business Outlook • Current Initiatives • Paula Hadjisotiriou, CFO • Financial Highlights • Financial Review • Appendices 3

  4. Slide 4: Economic and Business environment

    Economic and Business environment ƒ Macro environment supported by 2004 Olympics, EU funds – 1Q03 GDP growth 4.3% – April CPI 3.4% ƒ Lending growth continues, driven by retail – Feb ’03 private sector lending up 18% ƒ Liberalisation of consumer credit in the cards ƒ Greek banks focus on profitabilit

  5. Slide 5: Initiatives to grow revenues & profits

    Initiatives to grow revenues & profits • Clear focus on high margin & high growth segments – consumer finance, mortgage credit, SMEs, asset management, capital markets • Postbanka acquisition in Serbia, upgrading Romanian, Bulgarian operations • Closed–end funds acquisitions: efficiency, goodwill an

  6. Slide 6: Corporate Framework Redesign completed

    Corporate Framework Redesign completed • Creation of 2 integrated market-oriented divisions – Retail Banking – Wholesale Banking • Across-the-bank client segmentation based on a cut-off-line at €2.5 m – Clients with a turnover below €2.5m serviced by Retail – Clients with a turnover above €2.5m serv

  7. Slide 7: Q1 2003 Highlights

    Q1 2003 Highlights • Enhanced position in consumer finance, small business lending, asset management, capital markets • Retail lending up 30% - Business lending up 15% • Strong Core Income • Staff and administrative expenses contained • Net profit at € 65 m vs. • € 27 m in 4Q02 • € 67 m in 1Q02 7

  8. Slide 8: Robust growth in household loans

    Robust growth in household loans • Household lending up 30% to € 5.3 bn: – Consumer Credit up 31% to € 2.9 bn – Mortgage Credit up 28% to € 2.4 bn In € m 5,500 5,298 30% 4,500 4,085 3,500 2,398 1,869 2,500 1,500 2,900 2,216 500 -500 1Q 02 1Q 03 Consumer Credit Mortgage Credit 8

  9. Slide 9: Market share gains in Mutual Funds - Equity Brokerage

    Market share gains in Mutual Funds - Equity Brokerage • Expanding our market share in Mutual Fund management from 16% at end 2002 to 19% in 1Q 03 (excl. money market ) • Further market share gain in Equity Brokerage: from 13% at end-2002 to 14.5% in 1Q03 Market Share in Mutual Funds (excl. MM) Marke

  10. Slide 10: Financial Review

    EFG @ Eurobank Ergasias FINANCIAL REVIEW

  11. Slide 11: Profitable Loan mix

    Profitable Loan mix – Consumer finance 21% of loans Loan Mix Q1 ’03 – Mortgages 17% of loans 9% – Business clients reclassified by sales, 29% serviced by dedicated networks: 17% – Small < € 2.5 m (300 retail branches) – Medium < € 25 m (44 business centres) – Large > € 25 m (2 corporate centres) 24%

  12. Slide 12: Customer Funds up 3%

    Customer Funds up 3% Customer Funds In € m 3% 23,100 22,403 25,000 (20.1)% 2,911 20,000 3,645 1,919 1,787 7.5% 15,000 10,000 18,270 16,971 * 7.7% 5,000 0 1Q 02 1Q 03 Deposits & οther liquid funds Mutual Funds Other investment products * ‘’S- plus’’ money market fund reclassified under liquid funds 1

  13. Slide 13: Net Interest Income at € 200 m

    Net Interest Income at € 200 m In € m 220 200 200 4% 192 9* * Banc Post 6* 191 180 186 181 180 180 171 168 160 140 120 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 avg. 02 1Q 03 13

  14. Slide 14: Loan Margin drives NII

    Loan Margin drives NII In € m 250 200 192 200 181 180 180 171 168 17 16 14 12 18 14 18 14 13 24 150 25 23 22 26 37 37 34 37 36 33 35 100 121 128 50 101 95 108 107 108 0 0 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 avg. 02 1Q 03 Margin on loans Margin on deposits Earnings on capital and bonds Money market mismatc

  15. Slide 15: Diversified Fee Income

    Diversified Fee Income Growth in fees from bank charges, retail products, insurance and other services supports fee income in a difficult quarter for equity related business In € m 80 76 74 70 66 13 61 63 57 59 60 30 10 11 18 22 17 50 13 40 23 10 9 7 9 8 7 8 8 9 7 8 8 30 20 30 27 28 28 29 28 29 10 0

  16. Slide 16: NII & Fees at strong 4Q 02 levels

    NII & Fees at strong 4Q 02 levels In € m 300 266 266 246 250 229 238 239 74 243 66 75 63 57 59 61 200 200 192 181 180 180 171 168 150 100 50 0 4Q 01 1Q 02 2Q 02 3Q 02 0 4Q 02 avg 02 1Q 03 Lower band: NII Upper Band: Fees & Commissions 16

  17. Slide 17: Non-Core Income bottoming out

    Non-Core Income bottoming out • Equity results after minorities positively affected by the € 10 m goodwill gained on the acquisition of Ergoinvest • Slightly higher Bond gains - Lower Income from FX, Derivatives and Dividends Non-core income as reported Non-core income after minorities In € m 21.7 3

  18. Slide 18: Staff & general expenses contained

    Staff & general expenses contained Staff & Admin. Expenses up 3.5% ex-Banc Post In € m 150 +3.5% 145 140 143 144 135 130 125 130 129 132 120 124 129 115 110 105 100 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 avg 02 1Q 03 18 0

  19. Slide 19: Depreciation stable at 4Q 02 levels

    Depreciation stable at 4Q 02 levels • Altamira project completed in Sept ’02 In € m 30 25 23 22 20 15 19 18 15 10 5 0 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 19

  20. Slide 20: Comparable expenses below FY 02 avg.

    Comparable expenses below FY 02 avg. In € m 190 * Banc Post 180 * 10 * 170 167 160 13 * 161 150 153 148 148 150 140 139 130 120 110 100 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 avg 02 1Q 03 0 20

  21. Slide 21: Loan loss provisions at 4Q 02 levels

    Loan loss provisions at 4Q 02 levels • Provisions maintained at 4Q 02 levels • Organic NPLs at 3.1% of total loan book – Total NPLs at 3.7% • NPL coverage at 82% NPL provisions Total NPL Ratio In € m % 50 5.0 0.96 0.97 4.5 40 4.0 3.7% 3.7% 0.94 0.95 3.5 0.70.9% 0.70.7% 30 0.93 3.0 2.5 0.91 20 2.0 2.

  22. Slide 22: Net profit at € 65 million

    Net profit at € 65 million In € m 80 70 60 67 65 50 49 40 46 41 30 33 20 27 10 0 4Q 01 1Q 02 2Q 02 3Q 02 0 4Q 02 avg 1Q 03 2002 22

  23. Slide 23: Well capitalised, improving returns

    Well capitalised, improving returns 12% 11.7% 12.2% • Shareholders’ Equity at € 2.0 bn 10% 11.0% 8% • RAR at 12.2%, boosted by Ergoinvest acquisition 6% 4% • No hybrid component in Tier 1 2% • Return on Equity at 13.31% 0% 4Q02 1Q03 FY 03 E • Return on Required Equity at 14.2% Tier 1 - Risk Asset Ra

  24. Slide 24: Appendices

    EFG @ Eurobank Ergasias APPENDICES

  25. Slide 25: Contacts

    Contacts EFG Eurobank Ergasias, 8 Othonos Str., 10557 Athens, Greece Fax: +30 210 3337150 E-mail: investor_relations@eurobank.gr Internet: www.eurobank.gr Reuters: EFGr.AT Bloomberg: EUROB GA Investor Relations Yannis Tegopoulos Tel: +30 210 3371222 E-mail: itegopoulos@eurobank.gr Marlen Miliadi Tel

EFG Eurobank Ergasias — Q1 2003 Earnings Presentation on 6ix