Eurobank S.a. · ATHEX:EUROB
Eurobank — FY2015 Earnings Presentation
47 slides from Eurobank's earnings presentation, Mar 2, 2016
Slide 1: Full Year 2015 Results
Full Year 2015 Results 2 March 2016
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This presentation has been prepared by Eurobank. The material that follows is a presentation of general background information about Euroban
Slide 3: Table of contents
Table of contents Highlights 3 4Q2015 results review 10 International operations 20 Appendix I – Supplementary information 29 Appendix II – Macroeconomic update 37 Page 2
Slide 4: 4Q15 results highlights
4Q15 results1 Highlights Key financials 1 Core Pre-provision income (PPI) l-f-l2 up 13.7% q-o-q at €188m €m 4Q15 3Q15 NII up 4.3% q-o-q, driven by lower funding cost Net interest income 375.3 359.9 Commission income recovers to €62m from 3Q15 lows Commission income 61.7 47.7 Operating expenses
Slide 5: Pre-provision income (PPI)
Pre-provision income (PPI) Core PPI and other income (€ m) Highlights (13) 8 1 54 (8) Other income Core PPI l-f-l1 up 13.7% q-o-q at €188m NII up 4.3% q-o-q, driven by lower funding cost 197 Recovery of commission income from 3Q15 lows 187 191 188 l-f-l1 Core PPI 166 Operating expenses l-f-l
Slide 6: Asset quality
Asset quality 90dpd formation in Greece at €206m 90dpd coverage Household loans formation down while business loans formation up q-o-q 65.0% 64.8% 90dpd ratio at 35.2%, NPE ratio at 43.8% 64.8% 56.3% 55.6% 90dpd coverage ratio at 64.8%, NPEs at 52.1% €11.8bn provisions stock, accounting fo
Slide 7: Funding and liquidity
Funding and liquidity Eurosystem funding (€ bn) ELA eligible collateral (€ bn)1 GTBs & GGBs 34.0 Other 1.2 32.7 31.6 0.3 9.8 9.4 25.3 24.3 Pillar II bonds 19.0 5.3 4.9 ECB 5.5 12.5 22.9 22.3 ELA 20.0 19.5 15.0 Credit Claims 12.5 14.5 Jun 12 Dec 14 Jun 15 Sep 15 Dec 15 Feb 16 Interbank repos and euro
Slide 8: Capital position
Capital position Phased-in CET1 Fully loaded Basel III CET1 (FLB3) 525bps 10bps 17.0% 17.0% (45bps) 15.5% (50bps) (100bps) 13.1% 12.1% (240bps) 3Q15 CET1 4Q15 result 4Q15 CET1 Share capital movements 4Q15 CET1 FLB3 incl. pref. DTA phase out Minorities and FLB3 CET1 Preference adjustments increase sh
Slide 9: International Operations
International Operations Net recurring income (€ m) Highlights Profitable international operations, after a remarkable turnaround, with FY15 18 20 net recurring profit at €67m, against €182m losses in FY14 15 15 International operations profitable for fourth consecutive quarter, with €15m net re
Slide 10: Summary performance
Summary performance Balance sheet – key figures Income statement – key figures €m 4Q15 3Q15 €m 4Q15 3Q15 Gross customer loans 51,683 51,693 Net interest income 375.3 359.9 Provisions (11,790) (11,739) Commission income 61.7 47.7 Net customer loans 39,893 39,954 Operating income 429.5 461.2 Customer
Slide 11: 4Q 2015 results review
4Q 2015 results review Page 10
Slide 12: Loans and deposits
Loans and deposits Gross loans (€ bn) Deposits (€ bn) Δ €m before FX effect, write-offs (41) (683) 83 134.3% 133.0% 124.2% 126.9% Loans/Deposits 104.3% 51.9 52.9 52.8 51.7 51.7 8.0 7.9 7.6 7.6 7.6 International Greece 40.4 9.9 34.5 22.1 22.4 22.5 22.0 22.1 Business 31.4 30.6 30.0 1.2 9.3 Internation
Slide 13: Assets
Assets Total assets (€ bn) Gross Loans Consumer 13% Corporate 73.5 38% Mortgages 35% Small Business Net loans and advances to customers 39.9 14% Securities Trading & other GGBs 5% 10% Securities 16.4 GTBs 13% PP&E, intangibles and other assets 3.8 Derivatives 1.9 Other Held for Sale 2.1 Loans and ad
Slide 14: New time deposits spreads and client rates (Greece)
New time deposits spreads and client rates (Greece) Time deposit client rates (bps) Deposits mix 209 Core 192 59% 183 188 182 179 Time 189 174 182 178 41% 182 178 175 178 173 165 Core deposits share in the mix increased by 23ppt since 31/12/2014 153 139 126 New time deposit spreads (bps) 128 114 1
Slide 15: Net interest income
Net interest income NII breakdown (€ m) NII per region (€ m) 383 375 362 366 360 105 103 100 International 104 102 276 278 258 263 258 Greece 521 509 517 497 497 Loan margin 4Q14 1Q15 2Q15 3Q15 4Q15 NII evolution q-o-q (€ m) Capital & bonds 11 5 20 13 17 Market & Eurosystem (7) 6 funding (51) 5 375
Slide 16: Spreads & net interest margin
Spreads & net interest margin Lending spreads (Greece, bps)1 Deposit spreads (Greece, bps) 542 525 Corporate Savings (29) (34) and sight 508 (42) (36) (38) 501 489 Total 479 Total (72) 467 (89) 460 451 452 (138) (110) (107) 446 Time 435 436 Retail (122) 433 425 (185) (153) (165) (161) 4Q14 1Q15 2Q15
Slide 17: Commission income
Commission income Commission income breakdown (€ m) Commission income per region (€ m) Total fees 0.45% Fees / Assets excl. excluding 0.44% 0.47% 0.42% 0.41% Govt. guarantees expense 82 79 82 74 83 Govt. guarantees 0.34% expense Fees / Assets 0.38% 0.36% 0.36% 0.26% 62 70 67 68 67 70 68 62 12 48 13
Slide 18: Operating expenses
Operating expenses OpEx per region (€ m) OpEx breakdown (€ m) 1,035 1,017 291 12 Other2 257 (5.8%) 30 SRF1 243 242 42 SRF, other1,2 241 68 65 International 98 975 OpEx excl. SRF, other1,2 64 63 65 83 Depreciation 378 Greece 363 Administrative 189 178 178 177 184 559 529 Staff 4Q14 1Q15 2Q15 3Q15 4Q1
Slide 19: 90dpd gross formation per segment (Greece)
90dpd gross formation per segment (Greece) Mortgages (€ m) Consumer (€ m) 245 221 216 164 205 149 147 143 135 160 171 138 129 100 122 119 115 84 83 109 82 103 94 72 66 76 84 84 55 72 54 43 41 56 35 35 36 17 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q1
Slide 20: Asset quality metrics
Asset quality metrics 90dpd & and coverage per segment Non Performing Exposures (EBA) >90dpd ratio >90dpd 90dpd Coverage NPF1 Other Total NPEs Provisions & >90dpd Provisions (%) (%) 0-89dpd Impaired NPEs ratio collaterals / (€ bn) (€ bn) / NPEs (%) (€ bn) (€ bn)2 (€ bn) (%)3 NPEs (%) Consumer 49.5 3
Slide 21: International operations
International operations Page 20
Slide 22: International presence
International presence Total Assets (€ bn) 1.4 Net Loans (€ bn) 0.3 Deposits (€ bn) 1.1 Total Assets (€ bn) 1.3 Net Loans (€ bn) 0.8 Deposits (€ bn) 0.7 Total Assets (€ bn) 3.2 Branches (#) 80 Net Loans (€ bn) 1.8 Deposits (€ bn) 1.8 Branches (#) 148 Total Assets (€ bn) 3.2 Net Loans (€ bn) 2.1 Tota
Slide 23: Income statement highlights
Income statement highlights Core PPI (€ m) Pre Provision Income (€ m) 4Q14 12 69 65 1Q15 14 63 ROM 61 61 3 2 2Q15 14 4 3 LUX 5 15 13 3Q15 13 17 13 15 13 CYP 4Q15 10 9 9 10 8 SER 4Q14 23 25 26 1Q15 22 24 22 24 BUL BUL 2Q15 25 3Q15 26 11 15 14 ROM 10 10 4Q15 24 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 9 1Q15 10
Slide 24: Net recurring profit
Net recurring profit Total (€ m) Romania (€ m) Bulgaria (€ m) 18.2 19.7 14.8 14.7 4.6 6.9 6.3 5.8 1.9 2.1 1.6 (2.9) (5.4) (47.9) (46.5) 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 Serbia (€ m) Cyprus (€ m) Luxembourg (€ m) 9.3 9.7 7.3 7.3 7.4 4.3 4.2 2.9 1.7 2.3 1.6 (0
Slide 25: Operating expenses
Operating expenses OpEx per Country (€ m) OpEx breakdown (€ m) (5.8%) 68 273 4 64 63 65 65 258 4 4 5 4 35 5 LUX 31 6 6 6 5 13 Depreciation 11 11 11 11 CYP 120 19 20 118 19 18 19 SER Administrative 27 BUL 25 25 24 26 118 109 ROM Staff 4Q14 1Q15 2Q15 3Q15 4Q15 FY14 FY15 Cost-to-income ratio (%) Cost-t
Slide 26: Gross Loans
Gross Loans Romania (€ m) Bulgaria (€ m) 2,547 2,595 2,515 2,542 2,534 2,516 2,494 2,489 2,340 2,307 606 395 389 389 387 383 Consumer 606 585 15% Consumer 560 536 23% 44% 785 779 54% 784 765 764 Mortgage 31% 772 826 Mortgage 817 765 753 33% FY15 FY15 1,169 Business 1,337 1,368 1,366 1,363 1,348 Busi
Slide 27: Deposits
Deposits Romania (€ m) Bulgaria (€ m) 2,572 2,454 2,260 2,262 2,351 842 775 1,864 1,803 1,794 711 807 850 Time 1,684 1,600 36% 39% 1,232 1,208 1,092 Time 64% 1,087 1,050 61% 1,731 1,679 1,549 Core 1,455 1,501 631 595 597 550 702 Core FY15 FY15 FY14 3M15 6M15 9M15 FY15 FY14 3M15 6M15 9M15 FY15 Serbia
Slide 28: Asset quality
Asset quality Romania Bulgaria 69.2% 62.9% 63.6% 64.5% 64.8% Coverage 67.5% 68.1% 66.4% 66.9% 63.0% Coverage 31.4% 31.8% 32.6% 31.6% 32.0% 90dpd 23.2% 23.0% 23.2% 23.1% 23.4% 90dpd 90dpd gross 90dpd gross formation 12 9 10 7 2 formation (€ m) 5 (€ m) (9) (7) (3) (7) 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q1
Slide 29: Key figures – 4Q15
Key figures – 4Q15 Romania Bulgaria Serbia Cyprus Lux Sum Assets 3,235 3,186 1,254 3,724 1,405 12,804 Gross loans 2,307 2,494 891 1,559 344 7,595 Balance Sheet (€m) Net loans 1,813 2,116 790 1,493 344 6,556 Balance Sheet 90dpd Loans 738 584 157 107 2 1,588 Deposits 1,794 2,351 705 3,305 1,147 9,302
Slide 30: Appendix I – Supplementary information
Appendix I – Supplementary information Page 29
Slide 31: Income statement highlights (Greece)
Income statement highlights (Greece) Operating income (€ m) Operating expenses (€ m) 332 312 313 302 301 226 189 177 178 178 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 Provision charge (€ m) Net income before non-recurring charges (€ m) 1,794 10 (116) (112) (357) 652 260 221 226 (1,301) 4Q14
Slide 32: Private Banking
Private Banking Market leader in Greece with holistic servicing model in 3 countries AuM (€ bn) Data as of December 2015 Relationship AuM (€ m) Clients (#) 6.5 6.0 Managers (#) 5.9 1.3 5.3 5.5 1.1 1.1 1.1 1.2 Greece 2,588 3,522 48 2.3 2.1 2.1 1.6 1.7 Luxembourg 1,741 1,313 12 2.9 2.7 2.6 2.5 2.6 Cyp
Slide 33: Asset Management
Asset Management Market leader in Greece with 45.9% market share in mutual funds AuM (€ m) Net flows (€ m) 4,279 1,061 211 77 945 984 45 Equity 900 583 Fund of funds 336 30 80 Special 2,882 (13) 294 purpose 78 246 Mutual (23) (174) (508) (15) Asset Balanced (36) Management Funds (96) (523) Mutual Fu
Slide 34: Securities services and Equity brokerage
Securities services and Equity brokerage Securities Services Eurobank Equities Clear market leader in institutional custody in domestic capital markets, over Dominant position in domestic capital markets, consistently ranking the past 10 years number one over the past 5 years The only Greek pr
Slide 35: Analysis of impairments and non–recurring items
Analysis of impairments and non–recurring items Income Statement (€ m) 4Q15 Net Interest Income 375 Commission income 62 Other Income (8) Operating Income 430 Operating Expenses (291) Pre-Provision Income 139 Loan Loss Provisions (271) Repossessed and Investment properties Other impairments (pre-t
Slide 36: Consolidated quarterly financials
Consolidated quarterly financials Income Statement (€ m) 4Q15 3Q15 2Q15 1Q15 4Q14 Net Interest Income 375.3 359.9 365.9 361.8 383.4 Commission income 61.7 47.7 66.8 67.6 70.0 Other Income (7.5) 53.6 0.6 8.1 (12.7) Operating Income 429.5 461.2 433.2 437.5 440.7 Operating Expenses (291.0) (241.9) (241
Slide 37: Consolidated financials
Consolidated financials Income Statement (€ m) FY15 FY14 Δ y-o-y (%) Net Interest Income 1,462.9 1,470.3 (0.5) Commission income 243.7 253.4 (3.8) Other Income 54.8 72.0 (23.9) Operating Income 1,761.5 1,795.7 (1.9) Operating Expenses (1,017.0) (1,034.9) (1.7) Pre-Provision Income 744.5 760.8 (2.1)
Slide 38: Appendix II – Macroeconomic update
Appendix II – Macroeconomic update Page 37
Slide 39: Greece macroeconomic outlook & themes
Greece macroeconomic outlook & themes Milder than anticipated GDP contraction in 2015 (-0.3%) on resilient private consumption and positive contribution of net exports. Real output expected to decline by c. 1% this year, but switch into positive growth dynamics possibly during the second semeste
Slide 40: Macroeconomic impact of capital controls and fiscal austerity milder than feared
Macroeconomic impact of capital controls and new fiscal austerity measures has so far proven to be milder than initially feared 2015 GDP estimated to have declined by less than expected last June Economy resilient in H1 2015 despite liquidity squeeze & heightened uncertainty in negotiations with
Slide 41: Gradual stabilization after the summer turbulence
Gradual stabilization after the summer turbulence Economic sentiment improves, but still lower than the EA average Signs of recovery in the domestic manufacturing sector 110 51.3 52 50 Units Threshold 50.2 104.6 105 50 105.0 48 Capital Controls 46.9 100 46 95 44 PMI 91.6 42 91.2 90 40 38 85 PMI > 50
Slide 42: Greece macroeconomic outlook 2016
Greece macroeconomic outlook 2016 Macro indicators: realizations & forecasts Key assumptions Global economy evolves in line with the latest official sector forecasts (see e.g. EC Winter 2016 forecasts, IMF-WEO, Jan 2016) Successful completion of 1st programme review opens the door for importan
Slide 43: New programme to fully cover borrowing needs over a 3-year horizon
New programme to fully cover borrowing needs over a 3-year horizon New financing envelope agreed last August aims to fully cover government borrowing needs over a 3-year period Up to €84.1bn official-sector loans, €1.3bn from return of profits accrued to the BoG’s ANFA portfolio & €6.2bn privati
Slide 44: Gradual improvement of domestic financial conditions expected
Gradual improvement of domestic financial conditions expected following successful completion of bank recap Stabilization of macroeconomic environment to facilitate recovery of bank deposits from this year onwards Return of “under the mattress” money into the banking system Cash outside Greek
Slide 45: Progress on structural reform implementation
Progress on structural reform implementation Around one quarter of MoU milestones fulfilled already 48 prior actions met ahead of November ESM loan disbursement (€2bn plus bank recap funds) Strategy for NPLs (outstanding issues to be addressed as part of 1st programme review) Amendments to hou
Slide 46: 1st programme review agenda
1st programme review agenda 1st programme review - prior actions Social security-pension reform Income tax reform Assessment of agreed fiscal target for FY-2016 and the respective additional measures if needed Update of the Medium-Term Fiscal Strategy (2016-2019) Finalization of plan for
Slide 47: Investor Relations contacts
Investor Relations contacts Dimitris Nikolos +30 210 3704 754 E-mail: dnikolos@eurobank.gr Yannis Chalaris +30 210 3704 744 E-mail: ychalaris@eurobank.gr Christos Stylios +30 210 3704 745 E-mail: cstylios@eurobank.gr Ariadni Kranidioti +30 210 3704 764 E-mail :akranidioti@eurobank.gr Group E-mail: i