Unicaja Banco S.a. · BME:UNI
Unicaja Banco — FY2024 Earnings Presentation
49 slides from Unicaja Banco's earnings presentation, Feb 4, 2024
Slide 1: 2024 Results Presentation & Strategy 2027
2024 Results Presentation & Strategy 2027 February 4th, 2025
Slide 2: Index
Index 1 Overview 2 Key highlights 3 2024 Results: • Business activity • Financial Results • Asset quality • Solvency & liquidity 4 Strategic Plan 2025-27 5 Final Remarks 2
Slide 3: Overview: Excellent starting point towards a new phase
Overview Excellent starting point towards a new phase A new phase Key strengths Strategy 27 Close to our territories Retail banking transformation Governance structure High solvency Corporate banking growth Integration completed Prudent risk management Structural profitability Management team Excell
Slide 4: Significant increase of shareholder remuneration in 2024
Significant increase of shareholder remuneration in 2024 Supported by profit growth, improvement in asset quality and increased capital ratios Dividend(1) per share Shareholder remuneration(1)(€m) (€ cents) 16 14 X2.7 13.4 X3.4 444 12 times times 10 100 7.4 8 6 4.8 5.0 4 2.5 2 1.1 6.0 344 0 2020 202
Slide 5: Index
Index 1 Overview 2 Key highlights 3 2024 Results: • Business activity • Financial Results • Asset quality • Solvency & liquidity 4 Strategic Plan 2025-27 5 Final Remarks 5
Slide 6: Key highlights
Key highlights Business activity Profitability Asset quality Solvency and liquidity Our solvency and liquidity Customer business Profitability more than NPAs continue to reduce position allows us to volume improves by 2% doubles vs 2023 with while maintaining high significantly increase in the year
Slide 7: Guidance 2024
Guidance 2024 Achievement of key guidelines thought the year 2024 3Q24 2024 initial guidance update Final Metric Net interest income +2-3% >10% 14% Commissions -2-3% -c.5% -4% Costs +c.5% +c.5% +5% Cost of risk 30-35bps 30-35bps 23bps Low Range RoTE(1) @12.5% CET1 >9% >10% 10.4% (1) Adjusted ROTE co
Slide 8: Index
Index 1 Overview 2 Key highlights 3 2024 Results: • Business activity • Financial Results • Asset quality • Solvency & liquidity 4 Strategic Plan 2025-27 5 Final Remarks 8
Slide 9: Customer funds
Customer funds Customer deposits increase by 4.7% and off-balance sheet funds by 7.1% year on year Total customer funds Customer funds on balance € million Breakdown Million Euros 4Q23 3Q24 4Q24 QoQ YoY Customer funds on balance (excl. Repos) 67,738 69,150 70,928 2.6% 4.7% 9% Public institutions 5,4
Slide 10: Wealth management and insurance
Wealth management and insurance Substantial improvement in both managed balances and recurring revenue Assets under management & insurance Assets under management (€bn) revenues(1)(€m) 21.1 22.6 +12% 20.2 Vs. 2022 +10% 9.1 Vs. 2022 Other 9.0 9.7 349 312 Mutual 13.5 Funds 11.2 11.4 +20% Vs. 2022 2022
Slide 11: Lending
Lending The book begins to stabilize with improvement in new lending in all segments Performing loan book Performing loan book € million Breakdown Million Euros 4Q23 3Q24 4Q24 QoQ YoY 7% 10% Public sector 4,799 4,551 4,465 -1.9% -7.0% Private sector 43,525 42,393 41,888 -1.2% -3.8% Corporate loans 1
Slide 12: New lending
New lending Full year new lending improves in all lending books Total private sector lending (€m) Business & SE lending (€m) +19% +31% 1,838 1,870 1,145 1,085 4,104 1,327 7,063 5,940 764 3,120 4Q23 3Q24 4Q24 2023 2024 4Q23 3Q24 4Q24 2023 2024 Mortgages (€m) Consumer lending (€m) +4% +11% 608 176 563
Slide 13: Index
Index 1 Overview 2 Key highlights 3 2024 Results: • Business activity • Financial Results • Asset quality • Solvency & liquidity 4 Strategic Plan 2025-27 5 Final Remarks 13
Slide 14: Income statement
Income statement Net income improves by 115% in the year driven by gross margin and lower provisions P&L statement(1) Main variations QoQ YoY YtD Million euros 4Q23 3Q24 4Q24 2023 2024 (%) (%) (%) Net Interest Income 380 384 381 -0.8% 0.1% 1,353 1,538 13.7% Dividends 0 5 1 -74.4% na 25 16 -36.6% Ass
Slide 15: Net interest income
Net interest income Customer spread down in the quarter with stable deposit costs and lower loan yields Average quarterly yields and costs(1) (%) Yearly evolution 3.59% 3.55% 3.48% NIM (2) +1bp 3.35% 3.33% 2.91% 2.83% 2.75% 2.75% 2.61% Loan -2bps yield 1.80% 1.82% 1.77% 1.83% 1.81% Deposit 0.72% 0.7
Slide 16: Net interest income evolution
Net interest income evolution Stable in the quarter, lower wholesale funding costs offset lower loan yields Net interest income quarterly evolution(€m) Deposits: Higher interest-bearing deposit balances 9 Lending: Lower credit volumes along 1 with lower loan yields 11 Liquidity: Commercial gap • ALC
Slide 17: Fee income
Fee income Fees evolve towards a mix of greater added value products for the customer Net fees(€m) Fee income breakdown (%) QoQ YoY YoY Million Euros 4Q23 3Q24 4Q24 2023 2024 (%) (%) (%) Payments and accounts 72 66 66 0.3% -8.1% 295 266 -9.8% 8% 8% Non-Banking fees 58 60 65 8.0% 12.1% 238 248 4.3% 1
Slide 18: Other income
Other income Improvement year-on-year due to the significant reduction in contribution to DGF and SRF Other income breakdown (€m) QoQ YoY YoY Million Euros 4Q23 3Q24 4Q24 2023 2024 (%) (%) (%) Dividend income 0 5 1 (74%) na 25 16 (37%) Associates 29 15 13 (11%) (54%) 92 87 (5%) Trading income 4 4 5
Slide 19: Operating expenses
Operating expenses Cost to income improves by 4 p.p. in the year despite costs increase Operating expenses Quarterly evolution (€m) Cost to income (1) (%) 217 228 230 22 22 22 73 68 65 D&A 48% Administrative expenses 44% 123 138 143 Personnel expenses 4Q23 3Q24 4Q24 Operating expenses Annual evoluti
Slide 20: Cost of risk and other provisions
Cost of risk and other provisions Downward cost of risk together with lower provisions for foreclosed assets partially offset by other extraordinary provisions Loan loss provisions and credit cost of risk(1) (€m) Total provisions evolution(€m) 34 546 31 29 27 24 286 319 15 111 146 193 114 2023 2024
Slide 21: Profitability
Profitability Significant improvement in profitability, enabling the adjusted ROTE target to be achieved Return on tangible equity (ROTE)(3)(%) > 10% 10.4% Adjusted ROTE target Pre-tax profit(€m) 4.5% 4.7% 9% 4% 4% 227 816 2022 2023 2024 ROTE Rote adjusted(4) 265 243 47 Net profit and Banking margin
Slide 22: Index
Index 1 Overview 2 Key highlights 3 2024 Results: • Business activity • Financial Results • Asset quality • Solvency & liquidity 4 Strategic Plan 2025-27 5 Final Remarks 22
Slide 23: Non-performing loans
Non-performing loans Non-performing loans fell by 18% in the year with coverage improving to 68%(+2p.p) Non-performing loans(€m) Non-performing loans breakdown (%) 1,568 -18% YoY 1,460 1,417 -4% QoQ 1,348 1,292 5% 37% 53% 4Q23 1Q24 2Q24 3Q24 4Q24 4% 3.1% 3.0% 2.9% 2.8% 2.7% Corporate Loans RE Develo
Slide 24: Non-performing assets
Non-performing assets Foreclosed assets reduced by 28% and non-performing assets by 22% in 2024 Foreclosed assets evolution(€m) Gross non-performing assets(%) 68% 70% 71% Coverage (%) 87 ▪ 33% of initial stock sold YTD 2,821 ▪ €142m sold in 4Q 2024 2,379 2,197 1,568 435 1,348 NPLs 1,253 1,292 905 Fo
Slide 25: Index
Index 1 Overview 2 Key highlights 3 2024 Results: • Business activity • Financial Results • Asset quality • Solvency & liquidity 4 Strategic Plan 2025-27 5 Final Remarks 25
Slide 26: Solvency (I/II)
Solvency (I/II) CET1 fully-loaded improved by 40bps in the year despite having distributed >150bps in shareholder remuneration throughout the year CET1 fully loaded (1) yearly evolution (%) CET1 fully loaded (1),(2) quarterly evolution (%) 0.42% 1.98% 0.43% 0.04% 0.03% 0.31% 1.61% 15.4% 15.1% 15.1%
Slide 27: Solvency (II/II)
Solvency (II/II) Comfortable capital position with ample regulatory buffers Capital levels versus current Capital structure - MREL (fully loaded) requirements 26.8% 26.9% SREP requirement 5.5% 5.1% (Total) 12.65% 2.7% 2.8% MREL(1) requirement 24.5% 2.0% 2.1% 1.8% 1.9% MREL ratio 21.8% (phased in) 26
Slide 28: Liquidity
Liquidity Best in class in liquidity position Liquid assets(€m) Main liquidity ratios 11,492 44,311 Loan to 67% deposit 32,818 NSFR 159% LCR 292% Net Liquid Assets Additional capacity to issue Total liquidity 28
Slide 29: Fixed income portfolio
Fixed income portfolio Slight quarterly increase in portfolio size Fixed Income portfolio evolution(€bn) Fixed income portfolio breakdown (%) 27.3 27.8 85% 26.6 Amortized cost 10% 12% 4Q23 3Q24 4Q24 2.6% 2.5% 2.6% 78% Yield evolution(1) 2.2 2.4 2.7 Public debt Sareb Private debt Duration (1) End of
Slide 30: Index
Index 1 Overview 2 Key highlights 3 2024 Results: • Business activity • Financial Results • Asset quality • Solvency & liquidity 4 Strategic Plan 2025-27 5 Final Remarks 30
Slide 31: 2027 Unicaja ambition
2027 Unicaja ambition A universal bank that is close and open to all customers, driving profitability in a sustained way and building capacities to guarantee a future of leadership in the home territories Recurrent profitability >€1,600m Retail Banking Growth in Business & Accumulated Net Profit 202
Slide 32: Retail Banking Transformation
Retail Banking Transformation KPIs Strategic • Substantial improvement in customer NPS Mortgages and ambition • Product portfolio simplification and process reengineering consumer lending Customer • New multichannel customer relationship model, focused on the Market share 27E Customer Voice Mortgage
Slide 33: Business and Corporate banking growth
Business and Corporate banking growth KPIs Strategic • Significant improvement of digital business banking at the forefront Share wallet ambition of the market lending to clients(1) Customer Business growth • Focus on NPS improvement in corporates business • Expert advice(Tax, Legal, Insurance, Inte
Slide 34: Business Enablers
Business Enablers Technology and Artificial Agility and operational Talent and culture Intelligence excellence • Investment in infrastructure and cybersecurity to gain efficiency and • Launch of a new commercial resilience management portal, simplifying • Promotion of reskilling initiatives of • Con
Slide 35: ESG
ESG Our commitment is renewed in the new strategic plan through a cross-cutting project that will ensure compliance with sustainability objectives 2024 2025 - 2027 >54% art. 8 y 9 Funds Meeting decarbonization targets Committed to the €1,600m Green bonds issued since 2022 (€2,396m eligible collatera
Slide 36: Profitability
Profitability Significant improvement in structural profitability expected to be maintained in the future Net Income(1) (€m) 2025 - 2027 +40% >€1,600m >€1,400m €1,117m Net interest income each year 573 >500 >500 >500 <50% 278 267 Cost to income 2022 2023 2024 3 years 2025E 2026E 2027E 3 years 2.1% a
Slide 37: Shareholder remuneration
Shareholder remuneration Driven by improved profitability and strong solvency Cumulative shareholder remuneration(1) (% of cumulative net income of the three years) 2025 - 2027 >85% >14% CET1 fully loaded (3) throughout the period, with a >25% buffer above the reference minimum of 12.5% >40% Shareho
Slide 38: Index
Index 1 Overview 2 Key highlights 3 2024 Results: • Business activity • Financial Results • Asset quality • Solvency & liquidity 4 Strategic Plan 2025-27 5 Final Remarks 38
Slide 39: Guidance 2025
Guidance 2025 2024 FY 2025 E Net interest income 1,538M€ >1,400M€ Fees -4% Flat Costs +5% c.+5% Cost of Risk 23bps ~30bps Other provisions €193m <€100m Business volume(1) +2% +~3% RoTE(2) @12.5% CET1 10.4% c.10% (1) Includes performing loans, customer deposits and off-balance sheet funds. (2) Shareh
Slide 40: Final remarks
Final remarks Excellent starting point that allows us to assume a future commitment to higher structural profitability and shareholder remuneration Record results that lay the foundations for the future of the entity Strategy 27 Scaling up to greater structural profitability >10% RoTE(1) 2024 High s
Slide 41: Appendix
Appendix 41
Slide 42: Wholesale Funding
Wholesale Funding Wholesale funding: breakdown and maturities (1) Maturities breakdown (2) 11,000 5.7% 7.0% Instrument 2025 2026 2027 >2027 Total 9,000 3.6% 3.6% 3.2% 5.0% 3.0% AT1 - 500 - - 500 7,000 1.0% Tier 2 - - 300 300 600 3,930 5,000 -1.0% Senior non-preferred - 500 300 - 800 1,942 1,710 3,00
Slide 43: Lending portfolios
Lending portfolios ICO Loans evolution (€m) Corporates portfolio (performing) 4% 2,489 2,076 34% 1,431 1,041 942 62% 4Q21 4Q22 4Q23 3Q24 4Q24 Real Estate SMEs & SE Other corporates 43
Slide 44: Breakdown of NPLs and stages
Breakdown of NPLs and stages Credit breakdown by stages December 2024 (€m) Stage 1 Stage 2 Stage 3 Gross balance 43,615 2,738 1,292 Coverage 141 157 579 Coverage level(%) 0.3% 5.7% 44.8% 44
Slide 45: Share and book value
Share and book value Share and liquidity(1): 3Q24 after buyback3 4Q24 # O/S shares (m) 2,571 2,571 Last price (€) 1.15 1.27 Max price (€) 1.37 1.33 Min price (€) 1.13 1.06 Avg. daily traded volume (#shares m) 4.55 6.88 Avg. daily traded volume (€ m) 5.59 8.16 Market Capitalization (€ m) 3,040 3,276
Slide 46: Income statement
Income statement Million euros 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 QoQ (%) YoY (%) Net Interest Income 297 295 321 357 380 390 383 384 381 -0.8% 0.1% Dividends 3 0 18 6 0 0 8 5 1 -74.4% na Associates 23 14 34 15 29 25 34 15 13 -10.7% -54.3% Net fees 131 135 134 132 133 130 126 125 131 4.7%
Slide 47: Balance sheet
Balance sheet Million euros 31/12/2023 31/03/2024 30/06/2024 30/09/2024 31/12/2024 Cash on hand, Central Banks and Other demand deposits 8,040 10,375 8,388 6,777 7,502 Assets held for trading & Financial assets at fair value through P&L 918 601 913 1,192 1,142 Financial assets at fair value through
Slide 48: Important legal information
Important legal information This presentation (the Presentation) has been prepared by Unicaja Banco. S.A. (the Company or Unicaja Banco) for informational use only. The recipient of this presentation has the obligation of undertaking its own analysis of the Company. The information provided herein i
Slide 49: Many thanks
Many thanks 2024 Results Presentation & Strategy 27