Eurobank S.A. · ATHEX:EUROB
Eurobank — FY2009 Earnings Presentation
35 slides from Eurobank's earnings presentation, Mar 11, 2010
Slide 1: Full Year 2009 Results
SW-EUB022-2007-03-19-CMD-V7 March 11, 2010 Full Year 2009 Results
Slide 2: Macro environment & results highlights
Page 2 Macro environment & results highlights 2
Slide 3: Macro environment – Greece
Page 3 Macro environment – Greece Strong prospects for achieving fiscal consolidation Greek sovereign spreads expected to gradually normalize GDP is likely to contract by 2.5% to 2.8% in 2010, but fiscal drag to be offset by a number of positive factors C/A deficit to decline to single digit
Slide 4: Macro environment – New Europe
Page 4 Macro environment – New Europe Economic conditions to improve substantially in 2010 – We expect the region to grow by c.2.5% in 2010 Poland, Turkey to grow by 2.5% - 3.5% Bulgaria’s GDP expected to contract by 1% but coupled with fiscal discipline, low inflation, single digit C/A defici
Slide 5: FY 2009 results highlights
Page 5 FY 2009 results highlights FY 09 net profit at € 362m*, 4Q 09 net profit at € 82m* Pre-provision profit at € 1,569m, up 1.2%yoy OpEx down 6.1%yoy – best in class NII up by 1.5%qoq to € 608m for Q4, second best quarter ever Deposits up €1.2bn yoy, core deposits up € 2.2bn yoy (+17.5%
Slide 6: Financial Review
a NS Page 6 Financial Review
Slide 7: De-risking the loan book; continued focus on deposit gathering
De-risking the loan book; continued focus Page 7 on deposit gathering Total loans – selective de-risking Total deposits 45.7 1.2 46.8 +0.3 9.7 New 9.5 8.7 Europe +10.4 57.1 57.5 36.2 Rest of New 5.4 8.5 10.2 -0.9 9.3 Europe 27.7 +2.7 2.9 46.7 4.5 +0.7 5.2 Poland & Cyprus 7.5 36.9 37.1 Greece +2.7 30
Slide 8: Comfortable liquidity position
Page 8 Comfortable liquidity position Wholesale funding maturities profile Maturities for 2010 imply only modest refinancing requirements 2,800 2,744 2,111 Repaid €650m ytd 898 1,052 480 Funding 2010 2011 2012 2013 2014 raised in remaining ECB funding at € 8bn at YE 2009 €m Manageable 2010 mat
Slide 9: Improving trends in impaired loans
Page 9 Improving trends in impaired loans 90dpd formation drops by 45% Loans 90dpd +50bps +29bps +100bps -44% +100bps 6.69% 6.40% 5.90% 787 4.93% Group 90 dpd 713 3.43% 3.90% Greece 3.83% 4.20% 4.91% 5.77% 6.18% 6.43% New Europe 2.34% 3.04% 5.02% 6.32% 7.08% 7.45% -13% 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09
Slide 10: Encouraging trends in New Europe countries
Page 10 Encouraging trends in New Europe countries 10.8% 12.1% 9.0% 7.6% 8.5% 6.6% 5.8% 6.9% 3.2% 4.1% 1.2% 1.3% 1.8% 2.2% 2.4% 2.6% 2.6% 90+ over av. 1.1% loan book 129 105 71 80 60 64 54 32 32 39 34 39 28 19 19 16 7 14 Gross 90+ formation 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Slide 11: Adequate provision coverage
Page 11 Adequate provision coverage 90dpd provision coverage: 45% 3,850 NPL provision coverage: 59% Consumer 1,056 90dpd NPLs Value of Total NPL NPL Lending 2,974 provisions provisions collaterals coverage recovery coverage coverage rates Mortgages 520 1,056 Consumer >75% >75% ~5% >80% 35% Lending 1
Slide 12: Pre-provision profit outperforms 2008
Page 12 Pre-provision profit outperforms 2008 Quarterly pre-provision profit Pre-provision profit up yoy +1.2% 417** 414 1,569 411 409 410 404 1,551 389 363 321* 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 FY 08 FY 09 € m. * excl. € 160m own debt revaluation gain ** excl. € 13m one-off expenses
Slide 13: 2nd highest quarterly NII - loan NII again at record highs
Page 13 2nd highest quarterly NII - loan NII again at record highs – deposit margin improves gradually Second highest ever quarterly NII despite crisis NII marginally down yoy 621 608 608 590 590 599 560 566 544 -1.8% 517 600 608 482 564 580 2,385 2,341 Total NII 445 497 457 404 417 382 342 352 322
Slide 14: Strong rebound in client NII
Page 14 Strong rebound in client NII Client (loan and deposit) NII +15 Other NII +2.8% 553 +26 +31 537 -8 +5.1% 538 +6.1% 529 -1.4% +25 -42 +5.3% +15 512 506 -8.1% Loans & deposits NII +2.9% 491 487 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 € m. 14
Slide 15: Loan repricing continues, better spreads in deposits & New Europe
Loan repricing continues, better spreads in Page 15 deposits & New Europe Evolution of Greek spreads (%) Evolution of NIM (%) 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 NIM (%) 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 Sight & Savings Accounts 1.68 -0.06 -0.24 -0.46 -0.21 Greece 2.61 2.34 2.54 2.54 2.59 New Europe 4.11 3.55
Slide 16: Commission income gradually picking up
Page 16 Commission income gradually picking up 168 176 155 130 133 119 120 113 Lending Activities 60 81 64 53 58 42 44 Network & Other Activities 27 42 28 29 23 21 22 21 25 Capital Markets 40 32 25 18 18 15 22 19 Mutual Funds & AUM 22 20 19 14 17 15 17 10 Insurance 12 9 11 14 11 11 14 12 Non-banking
Slide 17: Costs reduction at 6.1% yoy; exceeds target of 5%
Costs reduction at 6.1% yoy; exceeds target Page 17 of 5% OpEx drops by 6.1% yoy Sharp cost deceleration (yoy% change) 27.5% Group Greece 15.7% 11.3% 1,566 -6% 1,471 Depr. 134 3.1% 139 -3.4% Admin. 605 -11% -6.1% 539 1,566 1,471 1,354 669 604 484 -4% Staff 828 794 870 897 867 FY 08 FY 09 FY 07 FY 08
Slide 18: New Europe: resilient pre-provision profit and improving bottom line
New Europe: resilient pre-provision profit Page 18 and improving bottom line New Europe C/I ratio at historic lows New Europe’s pre-provision profit resilient Employees – period end 14,400 112 97 93 96 93 13,600 90 84 75.8 77 11,800 Cost / Income (%) 64.1 62.3 FY 07 FY 08 FY 09 1Q 08 2Q 08 3Q 08 4Q
Slide 19: Strong organic improvement in the capital position
Strong organic improvement in the capital Page 19 position Common equity movement +712m Capital Adequacy (%) FY 08 9M 09 FY 09 -94 4,298 7.1% 8.8% 8.7% Equity Tier I ratio* (Core Tier 1 less goodwill) €4.2bn €4.2bn 443 Core Tier I ratio* 8.0% 10.0% 9.8% €4.8bn €4.7bn Total Tier 1 8.0% 11.5% 11.5% 36
Slide 20: Overview
a NS Page 20 Overview
Slide 21: Summary performance overview
Page 21 Summary performance overview Reversal of asset quality trends Positive pre-provision trends 410 389 414 404 787 363 90dpd formation 713 321 444 508 452 301 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 € m. € m. Comfortably profitable Strong and improving capital po
Slide 22: Segmental Performance
Page 22 Segmental Performance 22
Slide 23: Segmental Overview
Page 23 Segmental Overview PBT* per Segment Group PBT* Share of profits 9.0% 84.4% 4.1% 25.4% -36.2% 790 325 -51.0% FY 09 385 98 35 16 FY 08 FY 09 -140 Retail Corporate Wealth Global & Capital New Europe Management Markets Figures in € m. * after minority interest 23
Slide 24: Retail Segment
Page 24 Retail Segment Quarterly PBT evolution (€ m) 104 90 84 4Q 09/3Q 09 growth 3% 0% +11% -75% 28 9 12 10 3 322 333 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 193 FY 08 FY 09 174 138 137 – Cost to Income 46.2% 44.1% – Return on Equity 29.7% 3.7% – Return on RwA 2.74% 0.34% 10 3 – Share of pr
Slide 25: Corporate Segment
Page 25 Corporate Segment Quarterly PBT evolution (€ m) 83 84 80 78 63 64 65 66 4Q 09/3Q 09 0% 2% 21% -4% growth 129 129 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 84 80 FY 08 FY 09 – Cost to Income 28.8% 24.2% – Return on Equity 23.4% 26.2% 32 33 – Return on RwA 1.66% 2.03% 13 16 – Share of pr
Slide 26: Wealth Management Segment
Page 26 Wealth Management Segment Quarterly PBT evolution (€ m) 25 14 4Q 09/3Q 09 9 growth -12% 5% -47% 7 3 3 4 0 22 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 20 15 16 FY 08 FY 09 – Cost to Income 56.4% 79.0% – Return on Equity 35.9% 10.9% 7 – Share of profits 6.1% 4.1% 4 Revenues Expenses Pro
Slide 27: Global & Capital Markets Segment
Page 27 Global & Capital Markets Segment Quarterly PBT evolution (€ m) 53 56 45 32 4Q 09/3Q 09 26 25 growth -24% 3% -41% 22 19 50 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 38 32 FY 08 FY 09 – Cost to Income 29.8% 41.2% 18 19 19 – Return on Equity 42.3% 23.7% – Share of profits 22.7% 25.4% Reve
Slide 28: New Europe Segment
Page 28 New Europe Segment Quarterly PBT evolution (€ m) 45 37 23 4Q 09/3Q 09 1% 3% 0% N/A growth -18 -32 240 243 -37 -34 -37 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 158 163 115 116 FY 08 FY 09 – Cost to Income 68.4% 67.4% – Return on RwA 0.75% -1.00% – Share of profits 11.1% -36.2% -34 -37
Slide 29: Appendices
a NS Page 29 Appendices
Slide 30: Financial Ratios
Page 30 Financial Ratios Financial Ratios FY 09 FY 08 Net Interest Margin 2.81% 3.17% Cost-Income 48.4% 47.8% NPLs (% of loans) 5.16% 2.74% NPLs coverage 59% 90% Provision Charge (% of net loans) 2.11% 1.75% Tier Ι Ratio 11.5% 8.0% Total Capital Adequacy 12.7% 10.4% ROA after tax 0.4%* 0.9% ROE afte
Slide 31: Summary Figures
Page 31 Summary Figures Summary Figures (€ m) FY 09 FY 08 Δ% New Europe Net Interest Income 2,340.9 2,384.7 -1.8% 781.4 Net fees & Commissions 418.2 543.4 -23.0% 161.9 Insurance and non banking fees 78.1 74.8 4.3% 6.1 Total Operating Income 3,039.8 3,117.0* -7.2% 970.1 Operating Expenses 1,470.8 1,5
Slide 32: Key figures of New Europe operations
Page 32 Key figures of New Europe operations Romania Bulgaria Serbia Cyprus Poland Turkey Ukraine NE Δ% Total Assets 5,614 3,911 1,791 1,783 5,359 2,220 780 21,476 +1.1% Balance Sheet Total Loans 3,418 3,097 1,066 605 4,573 1,127 642 14,528 -1.4% Total Deposits 1,761 1,893 741 1,570 2,655 768 282 9,
Slide 33: FY 2009 – Summary per Segment
Page 33 FY 2009 – Summary per Segment Segmental Results 2009 Wealth Global & Capital Capital & Elimination Total (€ m) Retail Corporate Management Markets Other Center New Europe Interest income 1,111.2 421.8 -0.9 58.1 -7.9 0.0 758.7 2,340.9 Net fee & commission income 53.7 51.8 48.3 105.0 -2.58 0.0
Slide 34: FY 2008 – Summary per Segment
Page 34 FY 2008 – Summary per Segment Segmental Results 2008 Wealth Global & Capital Capital & Elimination Total (€ m) Retail Corporate Management Markets Other Center New Europe Interest income 1,191.0 312.0 22.4 81.1 32.5 0.0 745.7 2,384.7 Net fee & commission income 56.5 43.4 69.7 139.0 -2.70 0.0
Slide 35: Contacts
Page 35 Contacts EFG Eurobank Ergasias, 20 Amalias Avenue, 105 57 Athens, Greece Fax: +30 210 3337 160 E-mail: investor_relations@eurobank.gr Internet: www.eurobank.gr Reuters: EFGr.AT Bloomberg: EUROB GA Investor Relations Dimitris Nikolos Tel: +30 210 3337688 E-mail: dnikolos@eurobank.gr Yanni