Nova Ljubljanska Banka d.d. · LJSE:NLBR
Nova Ljubljanska Banka d.d — Q1 2016 Earnings Presentation
26 slides from Nova Ljubljanska Banka d.d's earnings presentation, 2016
Slide 1: NLB Group Q1'16 investor presentation
NLB Group Q1’16 investor presentation
Slide 2: Disclaimer
Disclaimer This document is for information purposes only and does not take into account specific circumstances of any recipient. It may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefo
Slide 3: Overview of NLB Group
Overview of NLB Group Key highlights Key figures The largest banking and financial institution in Balance sheet (EURm) Dec-15 Mar-16 Slovenia Total assets 11,822 11,931 NLB is currently 100% owned by the Republic of Loans to customers (gross) 8,351 8,336 Slovenia Loans to customers (net) 7,088 7
Slide 4: NLB Group has undergone a strategic transformation
NLB Group has undergone a strategic transformation Transformed into a client-oriented institution, focus on core markets and return to profit Client-focused strategic Where we were (2013) transformation Where we are today • Balance sheet in 2013 amounted to Balance sheet reduction • Smaller, stronge
Slide 5: Slovenia macro and banking backdrop
Slovenia macro and banking backdrop 5
Slide 6: Slovenia: Fully integrated into European institutions
Slovenia: Fully integrated into European institutions Member of the EU and the Eurozone EUR 39bn 2.9% Nominal GDP ’15 real GDP growth Export-driven economy with value- added export goods EUR 19k 9.0% Well educated labour force GDP/capita vs EUR ‘15 unemployment 11k CEE average(1) rate Solid
Slide 7: Economy growing at 2.9% compared to 1.5% Eurozone growth
Economy growing at 2.9% compared to 1.5% Eurozone growth Real GDP growth Macro Update • Slovenian economy grew by 2.9% in 2015 – stronger than Eurozone 3.0 2.9 average of 1.5% 1.2 1.5% • Drivers included exports growth and continued increase in private 0.6 Eurozone consumption 2015 growth • Economic
Slide 8: Slovenian banking sector turnaround
Slovenian banking sector turnaround NPL (+90dpd) ratio evolution Overview of 2013 extraordinary measures 14.4% 13.4% • Significant contraction of economic activity since 2009 paired with high 11.2% indebtedness of corporate sector drove NPLs to unprecedented levels • Asset Quality Review (AQR) under
Slide 9: Slovenian banking sector turnaround (cont'd)
Slovenian banking sector turnaround (cont’d) RoE evolution(1) Strengthened Banking System 2.9% 2.5% • Profitability of Slovenian banking sector returned to positive levels in 2015 -2.3% -2.7% -12.9% -19.3% • NPE ratio (according to the harmonized definition of EBA) decreased to 10.8%, as a consequen
Slide 10: Investment highlights
Investment highlights 10
Slide 11: Key highlights of NLB Group
Key highlights of NLB Group Largest bank in Slovenia and a strong player in selected SEE markets The largest • 121 branches and 23.8% market share in Slovenia (by total assets) banking and 1 • Largest provider of banking services in Slovenia as well as a leading asset management, financial pensions
Slide 12: Dominant player in the Slovenian market
1 Dominant player in the Slovenian market Market leader across products in Slovenia 25.5%(2) 5.885 Gross loans to customers(1) 2.155 1.964 1.926 1.870 EURm 25.4% Customer 6.373 deposits(1) 2.845 2.515 1.951 1.821 EURm 121 Branch 63 61 56 network(1) 28 # % Market share as of 1Q 2016 Source: Financial
Slide 13: Targeting countries with attractive growth prospects
2 Targeting countries with attractive growth prospects Top position in selected SEE countries NLB Group footprint • NLB Group is the largest Slovenian banking and financial group • NLB Group operates in Slovenia and 5 core SEE countries • 6 banking subsidiaries out of which 4 have more than 10% mark
Slide 14: Top position in target SEE countries
2 Top position in target SEE countries Core markets: Slovenia, BiH, Macedonia, Montenegro, Kosovo and Serbia Slovenia Bank: NLB d.d., Ljubljana Asset Manager: NLB Skladi, Ljubljana Insurance: NLB Vita, Ljubljana No. of branches: 121 Market share (in %)(4): 24.8 Market share (in %)(5): 10.8 Market sh
Slide 15: Successful business transformation
3 Successful business transformation Profitability driven by positive trend in SEE and cost discipline. Net Interest Income (EURm), Regular (1) Non-Interest Income (EURm) and Interest Margin Costs (EURm) 2.8% 2.8% 2.9% 2.6% 2.7% 2.7% 2.7% 2.5% 2.5% 2.5% 2.5% 368.2 332.8 51.3 303.5 297.8 1.6% 475.7 4
Slide 16: Improving net profit
3 Improving net profit Positive performance continued and enhanced in 1Q 2016 Positive performance continued in 1Q 2016 Profit before impairments and provisions YoY (EURm) Non-recurring effects Net improvement from recurring • Continued trend of stable and profitable Group EUR +11.0m activities EUR
Slide 17: NLB has driven a turnaround in asset quality
3 NLB has driven a turnaround in asset quality Further improvements expected from portfolio management and economic recovery • Reduction of NPLs remains a key focus Share and amount of NPLs (%, EURm) • Gross NPLs reduced in 1Q 2016 by EUR 33m in NLB d.d. and by EUR 71m at the Group level 5.000 40% 4
Slide 18: NLB has driven a turnaround in asset quality (cont'd)
3 NLB has driven a turnaround in asset quality (cont’d) NPE ratio (non-performing exposures by EBA definition) (1) NPE coverage ratio(2) 19% 16% 14% 14% 62% 63% 12% 12% 60% 59% 58% 55% Dec-14 Dec-15 Mar-16 Dec-14 Dec-15 Mar-16 NLB d.d. NLB Group NLB d.d. NLB Group Improving structure of credit portf
Slide 19: Well capitalised and self-funded franchise
3 Well capitalised and self-funded franchise Solid capital position with large and stable deposit base • Strong retail franchise provides a stable and price Customer deposits (31-Mar-16) insensitive deposit base Government • L/D ratio at 75% 3% • Core deposit base complemented by established wholesa
Slide 20: Clear strategic direction of NLB Group
3 Clear strategic direction of NLB Group Improving efficiency and accessibility of services and creating shareholders value Proactive and focused work with clients – Responsible to clients, employees and the building partnerships social environment Promote the development of micro and small Commitme
Slide 21: Focusing the NLB Group's operations
4 Focusing the NLB Group’s operations On core markets and divestments on non-core segments • Clear separation of core and non-core markets and activities implemented early in 2013 • Core activities include: banking, asset management and life/pension insurance activities • Core markets are Slovenia a
Slide 22: Right-sizing the balance sheet
4 Right-sizing the balance sheet Operational optimisation, focus on core markets and EC committments Balance Sheet • Total assets of the NLB Group increased to EUR 11.9bn at the end of March 2016, 1% higher compared to the end of 2015. Stable growth in retail loans and corporate loans on strategic m
Slide 23: Managing EC state aid commitments
4 Managing EC state aid commitments NLB restructuring plan agreed with EC, to be completed by 31 December 2017 KPMG is acting as the Monitoring Trustee for the commitments made to the EC RoS committed to the reduction of its shareholding in NLB to 25% plus one share by the end of 2017 Status
Slide 24: Additional data
Additional data 24
Slide 25: Key financial data and performance
Key financial data and performance NLB Group YoY 2013 • Sustainable profitability of (without NLB Group demonstrated extraordin. by trend of stable and (EURm, IFRS) 2013 measures) 2014 2015 1Q 2015 1Q 2016 positive performance for 9 Net Interest Income 234 234 330 340 85 80 consecutive quarters Tota
Slide 26: Key financial data and performance (cont'd)
Key financial data and performance (cont’d) NLB d.d. YoY 2013 • Profitability of NLB d.d. in (without 2014, 2015 and 1Q 2016 extraordin. is a sign of stabilised (EURm, IFRS) 2013 measures) 2014 2015 1Q 2015 1Q 2016 operations, successful Net Interest Income (1) 157 157 227 208 55 46 restructuring an
Nova Ljubljanska Banka d.d. — Q1 2016 Earnings Presentation on 6ix