Ofg Bancorp · NYSE:OFG
Ofg Bancorp — Investor Presentation (April 2015)
17 slides from Ofg Bancorp's investor presentation, Apr 22, 2015
Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Forward Looking Statements
2 Forward Looking Statements The information included in this document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties t
Slide 3: Well Diversified Business Focused on Puerto Rico
3 Well Diversified Business Focused on Puerto Rico Highlights 53 Branches, 332 ATMs in All Major Markets (4/1/15) • 94% TBV growth 2008-2014 • No. 2 bank in auto loans, No. 3 overall • Consumer / commercial banking • Well developed wealth management fee businesses • Efficiency ratio 49.19%* in 4Q14,
Slide 4: What Makes OFG Distinctive
4 What Makes OFG Distinctive Overview • Strongest bank locally and among best performing compared to mainland banks • Disciplined management with prudent decision-making track record • Proven capabilities in bank acquisitions and integrations • Despite prolonged recession in Puerto Rico, bank has be
Slide 5: 2014: Another Year of Accomplishment
5 2014: Another Year of Accomplishment Overview • First full year of combined operations after integration of BBVA PR businesses • Improved consistency in quarterly operating results • NII close to 2013 despite lower average interest earning assets Balance Sheet • Acquired loan balances lower as a p
Slide 6: Performance Metrics: Compare Well to Other Publicly Traded Banks
6 Performance Metrics: Compare Well to Other Publicly Traded Banks 4Q14 OFG SMID Cap 3 Year OFG 1 2014 2013 3 2012 Banks 2 Target Return on Average Assets 1.09% 0.94% 1.25% 1.10% 1.15% 0.37% Return on Average Tangible 10.16% 10.77% 12.00% 10.91% 14.01% 2.32% Common Equity Low 50% Efficiency Ratio 49
Slide 7: Capital Ratios: Exceed Requirements for Well-Capitalized Institution
7 Capital Ratios: Exceed Requirements for Well-Capitalized Institution 2014 with Basel III 2014 1 2013 2 2012 Calculation As Reported Leverage Ratio 11.28% 10.61% 9.06% 6.55% Tier 1 Common Ratio 13.29% 11.88% 10.46% 9.36% Tier 1 Risk-based Capital Ratio 16.71% 16.02% 14.38% 13.18% Total Risk-based C
Slide 8: TBV: Out Performed vs. PR Peers, Fast Growing Regionals
8 TBV¹: Out Performed vs. PR Peers, Fast Growing Regionals 100% 12/31/08-12/31/14 OFG +94% OFG 2012 decline reflects 80% dilution related to BBVA PR acquisition capital plan KBW Highly Profitable SMID Caps 60% +75%² 40% 20% 0% 1) Per basic share 2) KBW’s List of Highly Profitable SMID-Cap Banks, Nov
Slide 9: +20 Years of Progress Listed on NYSE
9 +20 Years of Progress Listed on NYSE OFG (+754%) S&P (+351%) Highlights 1000% • Stock has performed 2x better than S&P 500 (12/29/94 to 4/7/15) 800% • Uninterrupted payment of quarterly 600% dividends 400% • Tangible book value per share (basic) on long-term upward trend 200% Source: Yahoo Finance
Slide 10: Strategy
10 Strategy Oriental Bank • Only bank to have avoided legacy credit problems–opportunity to gain market share • Rational market pricing on big commercial loans in Puerto Rico • Focus on generating interest income from • Consumer and retail businesses (auto, consumer) • Small/mid-sized commercial loa
Slide 11: Building Our Brand
11 Building Our Brand Focus on Service Leadership • Research indicates that consumers look for excellence in service when choosing a bank • Oriental is the most well thought of brand for quality of service in banking in Puerto Rico Brand Attributes & Value Proposition • We are the “Can Do” bank • Fi
Slide 12: Banking Has Changed
12 Retail Optimization & Innovation to Grow Revenues, Reduce Costs The Old Way New Customer-Centric Way Banking Has Changed You go to the bank The bank goes to you Strategy #1 Strategy #2 Introduce Market Leading Innovations in PR Retail Optimization • FOTOdepósito • Redefine the customer engagement
Slide 13: Non-Interest Expenses: Enhanced Operating Efficiencies
13 Non-Interest Expenses: Enhanced Operating Efficiencies ($ in millions) $75 53.0% Operating Expenses 1, 2 Efficiency Ratio 1, 2 52.27% $65 51.5% 51.27% $55 50.0% $63.2 50.12% $65.6 $61.4 $59.8 $59.6 $58.1 49.30% 49.19% $45 48.5% 47.89% $35 47.0% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 3Q13 4Q13 1Q14 2Q14 3Q
Slide 14: Earnings: Expanding Performance
14 Earnings: Expanding Performance $0.45 1.3% EPS Diluted Return on Average Assets $0.35 1.2% 1.18% $0.25 1.10% 1.09% $0.42 1.1% $0.34 $0.38 $0.36 $0.35 $0.34 1.02% $0.15 0.9% 0.97% 0.93% $0.05 0.8% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Highlights • Have been able to maintain E
Slide 15: Tangible Common Equity: Continuing to Build
15 Tangible Common Equity: Continuing to Build $15.50 14.0% TBV Per Common Share ROATCE $14.75 12.0% 12.86% 10.78% 10.96% $14.00 10.0% 10.71% $15.25 10.16% $14.82 9.78% $14.71 $13.25 $13.47 $14.07 8.0% $13.60 $12.50 6.0% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 10.0% Highlights TC
Slide 16: Return on Capital: Growing
16 Return on Capital: Growing ($ in millions) $100 $0.40 Cumulative Stock Buyback Annual Dividends Per Common Share $75 $0.30 $50 $0.20 $83.3 $0.34 $66.4 $66.4 $0.26 $59.4 $0.24 $25 $0.10 $0.21 $0.16 $0.17 $0 $0.00 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 300% Highlights Total Pay
Slide 17: Outlook
17 Outlook Puerto Rico GDB Economic activity index has seen consistent declines in the last few months Treasury inflows for Jul-Dec lag last fiscal year as well as current year estimates GDB is planning to raise debt again, facing challenging liquidity conditions Sustained drop in oil prices provide