Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q1 2024 Earnings Presentation
36 slides from Unicaja Banco's earnings presentation, Apr 29, 2024
Slide 1: 1Q24 Earnings presentation
1Q24 Earnings presentation April 29th, 2024
Slide 2: Index
Index 01 Key highlights 02 Business activity 03 Financial results 04 Asset quality 05 Solvency & liquidity 2
Slide 3: Key highlights
1 Key highlights 3| v
Slide 4: Key highlights
Key highlights Business activity Profitability Asset quality Solvency and liquidity Private sector deposits Net interest income Stock of NPLs CET1 FLAT +32% -23% -7% 14.5% 679bps QoQ / YoY YoY YoY QoQ CET1 Ratio MDA buffer Off BS funds Banking margin Foreclosed assets MREL ratio +2.7% YoY +36% -33%
Slide 5: Business activity
2 Business activity 5| w
Slide 6: Customer funds
Customer funds Stable trends in private sector deposits while off-balance sheet funds continue to grow Customer funds Customer funds € million % Million Euros 1Q23 4Q23 1Q24 QoQ YoY On balance sheet customer 5% 67,886 67,738 66,691 -1.5% -1,8% funds Public institutions 5,585 5,454 4,338 -20.5% -22.3
Slide 7: Lending
Lending Performing loan book fell at a slower pace than previous quarters Performing loan book Performing loan book € million % Million Euros 1Q23 4Q23 1Q24 QoQ YoY Public sector 5.349 4,799 4.569 -4.8% -14.6% 6% 10% Private sector 46,257 43,525 42,959 -1.3% -7.1% Corporate loans 12,088 10,503 10,25
Slide 8: New lending
New lending Business lending and residential mortgages new loan production improved at the beginning of 2024 Private sector new lending € million 150 138 137 135 1050 913 761 764 100 550 50 0 50 Consumer & others Bussiness lending 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 800 674 2000 1.573 1.567 600 520 1500 1
Slide 9: Digital business
Digital business 70% Digital activity and customer Number of digital customers (1) acquisition keeps improving supported by the launch of the online platform 43% Of the consumer new production through remote channels 30% Of the mutual funds new production through remote channels (1) Active clients w
Slide 10: ESG
ESG Board of Directors renewal, aligned with best practices Committed to the environment Green bonds issued New Chairman: independent and non-executive SNP €1.3 Bn €0.3 Bn 6 support Committees, led by independent members SNP Green Bonds issued €0.5 Bn >40% Women 60% SP >40% Independent €0.5 Bn of SP
Slide 11: Financial results
03 Financial results n| v
Slide 12: Quarterly income statement
Quarterly income statement Net income more than x3 times above the previous year P&L statement(1) QoQ YoY Million euros 1Q23 4Q23 1Q24 (%) (%) Main quarterly variations Net Interest Income 295 380 390 2.7% 32,3% Dividends 0 0 0 na na Associates 14 29 25 -14.6% 82.7% ▪ NII: asset repricing more than
Slide 13: Net interest income
Net interest income Customer spread is 17bps basis points above 4Q23 Average quarterly yields and costs (%) Customer spread 3,59% +17bps 3,35% 3,09% 2,63% QoQ 2,91% 2,75% 2,17% 2,61% 2,26% 2,01% 0,68% +90bps 0,47% 0,60% YoY 0,37% 0,16% 1Q23 2Q23 3Q23 4Q23 1Q24 Customer spread Loan yield Deposit cost
Slide 14: Net interest income: Evolution
Net interest income: Evolution Improves 3% in the quarter supported by lending repricing and the improved liquidity position Net interest income quarterly evolution (€m) 400 Loan yield: + 24bps QoQ 10,3 14,1 390 Cost of deposits: + 8bps QoQ 380 9,8 370 4,4 360 Fixed income yield: -7bps QoQ 350 390 3
Slide 15: Fee income
Fee income Commercial campaigns to adapt the transactional business to a normalized interest rates environment was reflected in fee income trends Fee income breakdown (%) Net fee income breakdown (€m) 2% Million Euros 1Q23 4Q23 1Q24 QoQ YoY 9% Payments and accounts 73 72 70 -2.9% -4.9% Non-Banking f
Slide 16: Other income
Other income Sector banking tax increases form €64m in 2023 to €79m in 2024 Other income breakdown (€m) Million Euros 1Q23 4Q23 1Q24 QoQ YoY Dividend income 0 0 0 na na Associates 14 29 25 -14.6% 82.7% Trading income 9 4 1 -71.0% -85.0% Other operating income/expenses (79) (104) (85) -18.6% 7.1% o/w
Slide 17: Operating expenses
Operating expenses Cost to income improvement despite higher personnel costs Operating expenses (€m) Cost to income (1) (%) 60% 57% 217 225 212 55% 22 22 22 50% 49% 68 45% 71 73 40% 35% 30% 123 135 120 25% 20% 15% 1Q23 4Q23 1Q24 1Q23 1Q24 Personnel Administrative D&A (1) Cost to income includes D&A
Slide 18: Cost of risk and other provisions
Cost of risk and other provisions Significant decrease of provisions Loan loss provisions and credit cost of risk (1) (€m) Total provisions evolution (€m) 300 267 45 40 250 40 35 37 34 35 31 30 200 25 20 207 150 15 10 88 92 100 5 100 0 20 21 38 1Q23 2Q23 3Q23 4Q23 1Q24 53 50 33 30 25 3 27 19 26bps 3
Slide 19: Profitability
Profitability Profitability has started to improve towards targeted levels Net income 120 Return on tangible equity(3) (€m) 100 (%) 7% 80 6.0% 6% 60 111 40 6% 66 63 20 34 5% 4.5% 0 5% 1Q21 (1) 1Q22 1Q23 1Q24 4% 5,4% Banking margin (2) 4% (€m) 4,0% 350 3% 300 +36% 3% 250 200 1Q23 1Q24 150 296 ROTE RO
Slide 20: Asset quality
04 Asset quality 20 | v
Slide 21: Non-performing loans
Non-performing loans NPLs fell 23% year on year and 7% quarter on quarter Non-performing loans Non-performing loans breakdown 2500 (€m) (%) -23% YoY 1.921 -7% QoQ 2000 1.908 1.737 1.568 5% 1.460 1500 4% 1000 500 0 50% 1Q23 2Q23 3Q23 4Q23 1Q24 41% 3.56% 3.61% 3.39% 3.14% 2.98% NPL ratio 66% 66% 66% 6
Slide 22: Non-performing assets
Non-performing assets NPAs continue to decrease further Gross non-performing assets evolution Gross Coverage (%) Foreclosed assets (€m) NBV Debt (%) 70% Residential 290 103 64% NPA coverage Building under construction 264 62 77% 4000 3,698 Commercial RE 142 58 59% 2,821 2,662 3000 1.790 Land 506 91
Slide 23: Solvency & liquidity
05 Solvency & liquidity 23 | v
Slide 24: Solvency (I/II)
Solvency (I/II) CET1 FL ratio reflected the impact from the share buy back and the M2M of equity stakes CET1 fully loaded (1) quarterly evolution (%) Retained earnings and lower RWAs explained by the drop of 15,50% 0,28% the loan book 15,00% 0,18% 0,34% 0,02% 14,50% 0,31% Full deduction of the share
Slide 25: Solvency (II/II)
Solvency (II/II) Very comfortable capital position with ample regulatory buffers Capital structure - MREL (fully loaded) Capital levels versus current requirements 30% 28.0% 26.8% 25% 23.6% 5,8% SREP requirement 5,5% (Total) 12.75% 5,0% 2,8% 20% 2,7% MREL(1) 3,1% requirement 24.9% 1,5% 2,0% 1,9% 1,8
Slide 26: Fixed income portfolio
Fixed income portfolio Small increase in duration during the quarter Fixed income portfolio evolution (€bn) Fixed income portfolio breakdown (%) 30 25 26,9 25,9 25,7 20 13% 15 6% 10 5 0 1Q23 4Q23 1Q24 2.1% 2.6% 2.6% 81% Yield evolution(1) 2.6Y 2.2Y 2.4Y Sareb Private Debt Public Debt Duration (1) En
Slide 27: Liquidity
Liquidity Best in class liquidity position Liquid assets Main liquidity ratios (€m) 45000 11.573 41.487 Loan to 40000 deposit 74% 35000 29.914 Net Stable 30000 Funding Ratio 157% 25000 20000 Liquidity 15000 29.914 Coverage Ratio 294% 10000 5000 0 Net liquid assets Additional capacity Total liquidity
Slide 28: Appendix
Appendix 28 | Vv
Slide 29: Wholesale funding
Wholesale funding Wholesale funding breakdown and maturities (1) Maturities breakdown (2) 5.340 7,0% Instrument 2024 2025 2026 >2026 Total 6,1% AT1 - - 500 - 500 4,4% 3,6% Tier 2 300 - - 600 900 Senior non-preferred - - 500 300 800 1.942 Senior preferred 500 660 - 500 1.660 1.000 800 Covered Bonds -
Slide 30: Lending portfolios
Lending portfolios ICO Loans evolution Corporates portfolio (performing) 3000 2500 4% 2.489 2000 2.076 1500 1.431 1.322 50% 1000 45% 500 0 4Q21 4Q22 4Q23 1Q24 Large corporates SMEs & SE Real Estate 30
Slide 31: Credit stages
Credit stages Credit breakdown by stages March 2024 (€m) Stage 1 Stage 2 Stage 3 Gross Balance 44,465 3,063 1,460 Provisions 169 161 636 Coverage level (%) 0.4% 5.2% 43.5% 31
Slide 32: Share and book value
Share and book value Share metrics and book value(1) Share and liquidity: 4Q23 1Q24 # O/S shares (m) 2,655 2,655 Last price (€) 0.89 1.15 Max price (€) 1.04 1.15 Min price (€) 0.89 0.84 Avg. daily traded volume (#shares m) 9.37 7.42 Avg. daily traded volume (€ m) 9.19 7.04 Market Capitalization (€ m
Slide 33: Income statement
Income statement Million euros 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 QoQ (%) YoY (%) Net Interest Income 238 271 267 297 295 321 357 380 390 2.7% 32.3% Dividends 1 12 3 3 0 18 6 0 0 na na Associates 3 39 15 23 14 34 15 29 25 -14.6% 82.7% Net fees 133 130 131 131 135 134 132 133 130 -2.0% -3.5
Slide 34: Balance sheet
Balance sheet Million euros 31/03/2023 30/06/2023 30/09/2023 31/12/2023 31/03/2024 Cash on hand, Central Banks and Other demand deposits 12,262 6,879 6,846 8,040 10,375 Assets held for trading & Financial assets at fair value through P&L 213 203 204 918 601 Financial assets at fair value through oth
Slide 35: 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 is not to be relied upon in s
Slide 36: Many thanks
Many thanks 1Q24 Earnings presentation