Eurobank S.a. · ATHEX:EUROB
Eurobank — Investor Presentation (December 2013)
159 slides from Eurobank's investor presentation, Dec 9, 2013
Slide 1: Analyst Presentation
Analyst Presentation 9 December 2013
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 Introduction 3 Finance and Capital 13 Profitability Drivers 28 Risk Management and Asset Quality 37 Liquidity and Funding 69 Retail Banking 77 Group Corporate and Investment Banking 103 Capital Markets and Wealth Management 125 Eurobank Presence in SEE 144 Page 2
Slide 4: Introduction
A eurobank Introduction
Slide 5: The Eurobank Group at a Glance
The Eurobank Group p at a Glance Eurobank at a Glance Key Figures (€bn) One of the four systemic banks in Greece, with 20% and 18%(1) 30 Sep p 2013 market share in loans and deposits respectively Customer loans (net) 47.1 – Established in 1990, it is 95.2% held by the Hellenic Financial Customer d
Slide 6: Key Investment Highlights
Key y Investment Highlights g g 1 Systemic Greek bank within a strong position in a consolidated banking landscape Consolidated 4-Pillar market (93%(1)) providing opportunities to benefit from a recovery Eurobank with 20% market share in loans and 18%(2) in deposits Leading positions in fee gene
Slide 7: Consolidation of the Greek Banking Sector
Consolidation of the Greek Banking g Sector Market Share of Top 4 Banks(1) Gross Loans Market Share (30 Sep 2013) Gross domestic loans (€bn) Market share Greece as of 3Q 2013 93% BOP 67.7 29.6% Portugal 60% +34pps Greece as of 2005 59% Alpha 52.8 23.1% Turkey 53% Italy 51% NBG 45.9 20.1% Germany 42%
Slide 8: Leading Position in Key Fee Businesses
Leading g Position in Key y Activities Eurobank Standalone – Greece (2012) Ranking (2012) E it B Equity Brokerage k Market leader(1),16% market share #1 Treasury Sales Market leader #1 Investment Banking Market leader in M&A/Advisory (27 transactions in 2007-12) #1 and syndicated y loans issuance ((
Slide 9: A Modern Bank with an Entrepreneurial Culture and Spirit of Innovation
A Modern Bank with an Entrepreneurial Culture and a d Sp Spirit of o Innovation o a o High Qualified Personnel Acknowledged for their Standard in the Entrepreneurial Culture with an Innovation Track Record Market Business model innovator creating new segments and market standards Multi - skilled
Slide 10: Acquisition of TT and Proton Substantially Improved Eurobank's Relative Size and Profile
Acquisition of TT and Proton Substantially p Improved Eurobank’s Relative Size and Profile Group Gross Customer Loans (30 Sep 2013, €bn) Group Customer Deposits (30 Sep 2013, €bn) (2) Market Market 16% 20% 12% 18% share(1) share(1) 7.5 1.3 54.4 L/D 129% 64% 55% 111% ratio 45.6 10.3 0.9 42.3 31.0 Eur
Slide 11: ... with a Controlled Execution Risk
... with a Controlled Execution Risk Recent Acquisitions as %(1) of Customer Loans Acquired banks (2) Piraeus 45% 55% CPB (3) Alpha Bank 73% 27% (4) Eurobank 85% 15% (5) NBG 95% 5% Acquired loans (%) “Good” banks Manageable asset quality Potential for organic market Controlled execution risk (only “
Slide 12: ... while Generating Significant Synergies
... while Generating g Significant g Synergies y g Targeted pre-tax synergies 2015(1) (€m) Comments Lower deposit costs due to market consolidation and TT time deposit costs converging to Eurobank levels TT interbank funding costs decreasing to Eurobank levels Funding 56 89 44% Anticipated red
Slide 13: Strategic Transformation Program
Strategic g Transformation Program g A Built around deposit and daily banking needs of clients; current account-driven Enhance Strengthen fee business and revisit pricing New client segmentation model client- – Focus on profitable clients aiming to become their primary banking relationship rel
Slide 14: Finance and Capital
A eurobank Finance and Capital
Slide 15: 3Q13 Results Highlights
3Q13 Results Highlights g g 3Q13 bottom line at -€285m ((-€211m excl. one-offs vs. -€244m in 2Q13)) Pre-provision income up 53% qoq, as core income improves and non-core income swings to positive NII up for a second straight quarter, 7% qoq (+3% qoq excl. acquisitions) mainly driven by time de
Slide 16: Net Interest Income (NII)
Net Interest Income (NII) ( ) NII Breakdown (€m) NII per Region (€m) 373 358 310 323 303 301 108 104 277 118 Int'l 104 101 118 Operations 102 265 254 Greece 199 174 200 192 205 Loan margin 603 610 605 571 558 538 (1) 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 3Q13* NII Drivers qoq Capital & bonds 15 22 10 4 23 1
Slide 17: Spreads & NIMs
Spreads p (1) & NIMs(1) Lending Spreads (Greece, bps) Deposit Spreads (Greece, bps) 518 509 Core 494 499 Corporate -50 -47 -51 -55 -51 -51 501 501 487 482 486 475 Total Total 490 486 -220 467 -235 477 474 -248 Retail -263 -271 -279 -284 456 458 -322 Time -324 -352 -359 -353 3Q12 4Q12 1Q13 2Q13 3Q13
Slide 18: Commission Income
Commission Income Commission Income Breakdown (€m) Commission Income per Region (€m) Total fees excluding 81 89 82 77 83 Govt. guarantees expense 71 70 71 70 65 67 8 65 67 62 8 Non-banking 10 services 62 9 9 14 13 Insurance 26 26 7 7 11 26 Int'l 27 9 6 28 Operations 7 Mutual funds 12 7 5 8 10 4 Gree
Slide 19: Operating Expenses
Operating p g Expenses p OpEx per Region (€m) OpEx Down 27% Cumulatively Since 2008 (€m) vs. 3Q12 -4% 4% 340 vs. av.Q08 -28% 256 261 1,358 -27% 254 249 248 245 85 87 82 82 81 81 Int'l O Operations ti 172 167 167 166 164 180 Greece 471 (3) 988 Av. Q08 3Q12 Av 4Q12 1Q13 2Q13 3Q13 3Q13*(1) -31% 31% [l-
Slide 20: Voluntary Exit Scheme (VES) Impact
Voluntary y Exit Scheme ((VES)) Impact p A Voluntary Exit Scheme was designed and implemented for the Group’s employees in Greece, having as a main objective to increase the operating efficiency. The VES was offered to all employees of Eurobank and most of its subsidiaries in Greece as well as to
Slide 21: Pre-Provision Income (€m)
Pre-Provision Income (€m) ( ) +5% vs. 3Q12 +53% qoq +22 +3 -13 +39 148 141 3 37 3 0 9 -17 2 97 13 Δ Eurobank Δ TT & Proton (1) 3Q12 2Q13 ΔNII ΔFees ΔOpEx Δ non-core 3Q13 1. Including TT and Proton for one month Page 20
Slide 22: Total Assets Breakdown
Total Assets Breakdown Total Assets Breakdown (30 Sep 2013, €bn) Loan Book Breakdown (30 Sep 2013, %) Consumer 14% 80.1 Wholesale 37% Mortgages 35% Net loans and advances to customers 47.1 7. SSB 14% Securities Portfolio Breakdown (30 Sep 2013, %) Other Corporate GGBs 2% Securities 7% 13% 19.2 TT-Bi
Slide 23: Funding and Liquidity
Funding g and Liquidity q y Funding Breakdown (30 Sep 2013, €bn) Eurosystem Funding (€bn) Interbank 70.9 Wholesale Issues sold takings 1.5 (securitization) 10% 34.0 -51% funding 24% Repos 9.2 Supranational takings ELA funding 5.4 34% Issues sold ELA 15.0 (EMTN) ECB funding 12.5 32% Pension fund Repo
Slide 24: Loans and Deposits at Glance
Loans and Deposits p at Glance Gross Loans (€bn) Deposits (€bn) 151% 54.4 53.9 140% 136% 132% 129% 48.2 47.8 Intl Ops p 47 4 47.4 88 8.8 87 8.7 Group L/D 46.2 45.6 111% 110% 9.5 9.4 9.3 9.0 8.8 42.3 42.4 Business GR 8.5 8.5 22.4 22.0 Int'l 32.2 Operations 30.8 30.2 31.0 21.4 21.3 21.1 28.9 20.5 20.0
Slide 25: Asset Quality
Asset Quality y 90dpd Formation (€m) 90dpd Ratio (%) 3Q12 4Q12 1Q13 2Q13 3Q13(1) 874 Group 21.3% 22.8% 24.6% 26.4% 27.7% 811 768 757 Greece 22.5% 24.2% 26.3% 28.1% 29.2% 710 695 Int’l Ops 16.6% 17.2% 17.8% 19.2% 20.5% 601 594 563 553 805 Loan Loss Provisions (€m) 730 718 696 5.2 bps improvement (70b
Slide 26: 90dpd formation per segment (Greece)
90dpd p formation p per segment g ((Greece))(1) Corporate (€m) Mortgages (€m) 313 286 283 224 230 205 206 197 160 170 172 174 147 151 138 117 122 119 115 105 100 92 103 102 103 78 78 75 79 76 71 56 43 46 42 53 57 37 43 33 20 12 6 4 -31 31 -35 35 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Slide 27: Regulatory Capital
Regulatory g y Capital p EBA CT1 Ratio (%) 8.1% 0.8% 8.1% -0.7% 2Q13*(1) Impact from operations (2) IRB for TT and Proton** (2) 3Q13** EBA CT1 (m) 3,185 -463 225 2,947 RWAs (m) 39,538 -2,026 -939 36,574 1. Pro-forma for TT/Proton acquisition & Eurobank Properties transaction 2. Pro-forma for the ado
Slide 28: Equity to EBA CT1 Reconciliation (€m)
Equity q y to EBA CT1 Reconciliation ((€m)) 5,455 -950 4,141 950 -364 3,735 -406 406 2,947 418 -84 -1,997 1 997 -75 75 3Q13 equity Government Hybrids & Common Intangibles Tangible BV Government DTA Bad debt Minority Other EBA CT1 preference Minorities Equity preference provision Interest, adjustment
Slide 29: Profitability Drivers
A eurobank Profitability Drivers
Slide 30: Key Profitability Drivers
Key y Profitability y Drivers A Decreasing deposit spread: – Deposits costs in Greece are expected to normalize in the medium term – Time deposit spreads currently at -283bps vs. +17bps in Q4 2007 – Every 100bps improvement of time deposit spreads would translate into a €230m pre – tax income chan
Slide 31: 2012 vs. 2007 Financial Performance
2012 vs. 2007 Financial Performance PBT: 2012 vs. 2007 (€m)(1) Comments 1 075 1,075 -459 Sharp deterioration of profitability since 2007 peak -333 192 -1,266 mainly driven by: – Impairments: cost of risk increased from 100bps in p in 2012 2007 to 369bps -161 – Lower NII: mainly driven by increased
Slide 32: PPI comparison (€m)
PPI comparison p ((€m)) 1,455 703 581 €581m represents 3Q13 PPI of €145m x 4 Does not include expected 148 2 145 synergies of €203m from TT & Proton acquisitions -5 (1) 2007 2012 3Q13 PPI excluding TT & excl 3Q13 funding 3Q13 PPI - excl. 3Q13 x 4 Proton PPI synergies acquistions impact 1. Exclud
Slide 33: Operating Expenses
Operating p g Expenses p Cost-to-income Ratio (%) Group OpEx (€m) 1,358 -27% 988 Group cost / income ratio -61 G Greece costt / income i ratio ti 75 69 FY08 9M13 - annualized VES benefit (2) (1) 59 Comments 48 27% OpEx reduction since 2008 42 Cost reduction CAGR in the 2008-13 period at 6.1% Acq
Slide 34: Deposit Spreads Evolution
Deposit p Spreads p Evolution Eurobank Greek Time Deposits Spreads (bps)(1) Greek crisis provoked significant deposit outflows and subsequent pricing deterioration Time deposit pricing deteriorated by 340bps since 4Q07 17 -41 -79 Pricing being restored due to: – Macro stabilization -204 -228 -
Slide 35: Eurosystem Funding Exposure
Eurosystem y Funding g Exposure p Gradual Run-down on a Standalone Basis(1) Recent Acquisitions Improve Liquidity(2) Eurosystem funding (€bn) Cost of 34.0 -51% Eurosystem 2.3% 1.6% 1.3% 0.8% funding (%) 15.0 17.9 16.5 30.1 5.4 4.6 27.2 19.0 12.5 12.0 23.3 22.6 21 8 21.1 21.8 Eurobank Eurobank +TT+Pr
Slide 36: Fee & Commission Income
Fee & Commission Income Net Fee & Commission Income / Total Assets 0 92% 0.92% Due to the crisis, fee and commission income contracted from 0.9% of total assets in 2007 to 0.4% in 9M2013 0.68% Commission income is highly dependent on macro 0.57% 0.52% environment and markets performance (asset 0
Slide 37: Cost of Risk
Cost of Risk Cost of Risk Development (Greece) Greek provision charges increased by 280bps on average net loans between 4.5% 4.4% 2007-12 4.2% Asset quality hinges on macro but also 3 8% 3.8% regulatory environment: − New law on household insolvency to potentially t ti ll reduce d NPL fformation
Slide 38: Risk Management and Asset Quality
Risk Management and Asset Quality
Slide 39: Risk Management Function Overview
Risk Management g Function Overview Chief Risk Officer Credit Risk Market and Liquidity Risk Operational Risk Credit approval: Independent review First Greek bank with validated market risk Documented and functional operational of credit proposals and participation management system by Bank of
Slide 40: Strategic Initiatives with Respect to Asset Quality Protection and Credit Risk Mitigation
Strategic Initiatives with Respect to Asset Quality Protection and Credit Risk Mitigation g Shift from unsecured to secured lending and shorter tenors Reduction of consumer loan portfolio Overall Portfolio Strategic Directions Discretionary sector selection in business lending Risk based pri
Slide 41: Clear Credit Approval Processes in Place
Clear Credit Approval pp Processes in Place Relationship Manager Credit Sector team Credit Approval Committees Credit Request Package are prepared by the Review and evaluation of credit requests The Credit Request Package , RMs and proposals, before submission for together with the Risk Assess
Slide 42: Credit Control
Credit Control Approval Monitoring Reporting Approval of all credit policies and Independent field reviews of all portfolios Regular preparation of detailed analysis of continuous updates as required(1) information to quantify, monitor and evaluate Monitoring and reviewing performance of risks
Slide 43: Rating Systems Overview
Rating g Systems y Overview Retail Group Corporate and Investment Banking Credit Scoring Models Traditional / Non Specialized Lending Per product (6 models) Borrower rating (PD) system – covers 1 model for existing g customers Moody’s Risk Advisor 85% of o exposures e posu es Application (MRA)
Slide 44: 2013 Blackrock Diagnostic Exercise
2013 Blackrock Diagnostic g Exercise Scope of the Exercise Comparison with Previous Blackrock Exercise Assess banks’ lending practices and processes for establishing and monitoring asset quality Blackrock 2011 Blackrock 2013 Loan file reviews on a sample of loans across Retail Asset Quality and
Slide 45: Eurobank Asset Quality Trend in Greece
Eurobank Asset Quality y Trend in Greece Decreasing 90dpd formation trend since the peak of 2Q 2012 Eurobank – 90dpd Formation in Greece(1)(€m) 805 -43% YoY 730 718 696 633 613 576 525 534 493 460 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 2011: €2,268m 2012: €2,866m YTD 201
Slide 46: Coverage per Segment Analysis (Greece)
Coverage g pper Segment g Analysis y ((Greece)) Total 90dpd As of 30 Sep 2013 90dpd Value of Collaterals Coverage Consumer 90dpd ratio 50% Coverage 75% 8% 83% Mortgages 90dpd ratio 19% Coverage 21% 122% >100% Eurobank Small Business Excluding TT & 90dpd ratio 46% Proton Coverage 41% 70% >100% Corpor
Slide 47: Greek Consumer Loans – Asset Quality
Greek Consumer Loans – Asset Quality y 90dpd formation has shown a clear downwards trend in the last quarters as macroeconomic environment stabilises 90dpd coverage ratio incl. collaterals above 80% 90dpd Formation (€m) 90dpd Stock (€m) 440 Excl. TT & Proton Excl. TT & Proton 424 2,274 , 2,409 2
Slide 48: Greek Mortgage Loans – Asset Quality
Greek Mortgage g g Loans – Asset Quality y 90dpd formation for residential mortgages peaked in 1H 2012, and it has been reducing in the following quarters 90dpd ratio at 19% well below the market average 90dpd coverage ratio incl. collaterals above 140% 90dpd Formation (€m) 90dpd Stock (€m) Ex
Slide 49: Greek Small Business Loans – Asset Quality
Greek Small Business Loans – Asset Quality y 90dpd formation is reducing since the peak in 2012 and further deceleration is expected for next quarters mainly due to improving macroeconomic environment 70% backed by collateral (mainly properties) More than 80% of 90dpd portfolio are still opera
Slide 50: Greek Corporate and Investment Banking – Asset Quality
Greek Corporate and Investment Banking – Asset Quality y Increased collateralization from 48% to 55% during the last 2 years Delinquencies in 2013 higher than in 2012, slowdown observed since 3Q 2013 90dpd Formation (€m) 90dpd Stock (€m) Excl. TT & Proton Excl. TT & Proton 570 3,330 3,160 510 43
Slide 51: International Operations – Asset Quality Overview
International Operations – Asset Quality y Overview The trend of the asset quality for the international business remains variegate, with some countries showing signs of stabilization Romania Bulgaria 26.6% 21.9% 22.7% 24.8% 23.3% 23.6% 19.7% 20.5% 21.8% 22.1% 18.6% 20.4% 17.1% 19.0% 16.0% 17.7% 1
Slide 52: Asset Quality Strategic Initiatives and Credit Risk Mitigation
Asset Quality Strategic Initiatives and Credit Risk Mitigation g Restructured Loans (3Q 2013) Overall portfolio strategic directions: Excluding TT & Proton GCIB Shift from unsecured to secured lending and shorter tenors 26% Mortgage 32% Reduction of consumer loan portfolio Discretionary sector
Slide 53: Eurobank Strategy in Troubled Assets Management
Eurobank Strategy gy in Troubled Assets Management g Troubled assets management a focus area of the Bank already since 2008 with significant achievements so far – Reinforcement of Remedial units of the Business Units and of Legal Workout – Design & implementation of restructuring/rescheduling prog
Slide 54: Troubled Asset Committee Overseeing Remedial/Non Performing Clients Units
Troubled Asset Committee Overseeing Remedial/Non Performingg Clients Units Organization and Reporting Members of TAC(1) General Manager of Retail Banking CEO General Manager of Group Corporate and I Investment t t Banking B ki Chief Risk Officer (CRO) Troubled Assets Committee General Manage
Slide 55: Troubled Assets Management Framework
Troubled Assets Management g Framework Troubled Assets Committee Current Remedial Management Workout Management Group Corporate and Investment Banking has established a new Group Corporate and unit Corporate Special Handling Investment Banking Sector (CSHS) for management of problematic/ high risk c
Slide 56: Household – Remedial Management Organization
Household – Remedial Management g Organization g Eurobank has a unique capability in proactively managing the remedial management process Operating Structure Key Responsibilities within Remedial Management Approve Remedial strategies, products and policies Monitor Risk Group Risk Retail Bankin
Slide 57: Household – Collection & Servicing Subsidiary (FPS)
Household – Collection & Servicing Subsidiary ( (FPS) ) Assessing the opportunity to commercialize our remedial management expertise by servicing third parties Eurobank FPS Key Metrics (2012A) Business Model 717 internal FTEs and Eurobank Financial Planning Services is the group’s 400 FTEs in Br
Slide 58: Households – Key Activities Performed by Remedial Management Unit
Households – Key Activities Performed by Remedial Management g Unit Consumer Mortgage Description Portfolio Portfolio Remedial Strategy Design and develop the Remedial strategy that will be executed by each of the parties involved √ √ Callll C Collect overdue amounts across all delinquency stage
Slide 59: Small Business – Remedial Management Organization
Small Business – Remedial Management g Organization g Best-in-class Specialized Remedial Process for Small Businesses Only integrated multi-channel collection process for Small Business in Channels • Collection advisors Greek market, pursuing delinquencies all the way to legal workout • Network co
Slide 60: Remedial Management – Setting up a New Corporate Special Handling Sector (CSHS)
Remedial Management – Setting up a New Corporate p Special p Handling g Sector ((CSHS)) The bank aims to: enhance corporate remedial capabilities by setting up a distinct unit that will bring together the necessary know how and capabilities enable a more effective and efficient handling of the C
Slide 61: Corporate Special Handling Sector (CSHS) Responsibilities
Corporate Special Handling Sector (CSHS) Responsibilities p Status File Responsibility p y Performing RM RM RM On a very selective and capacity allowing basis RM "Early Warning" RM RM (RRM as advisor) RM RRM RRM "High High Risk/Watchlist Risk/Watchlist" Total Group €0-2m €2-15m >€15m Exposure posu e
Slide 62: Non-Performing Customers – Overview
Non-Performing g Customers – Overview Expected p Recovery y of the External Constraints Till Now Economy From 2014 Onwards Increasing numbers and O/S Adverse macro-economic balances of Non Performing Improving macro-economic Customers conditions conditions Limited Liquidity in the market Reduc
Slide 63: Non-Performing Customers – Strategy
Non-Performing g Customers – Strategy gy Minimize Non Performing Balances (NPBs) & Loss Given Default (LGDs) Reduce flows to Non Increase recoverability Improve security Maximize recovery from Performing Balances from organic sources coverage collateral/security Strategic directions Customer-centric
Slide 64: Non-Performing Customers Sector – New Integrated Operating Model
Non-Performing Customers Sector – New Integrated g Operating p g Model Non Performing Customer General Division (NPCGS) Business Workout Repaymen Origination Write Off Credit Collateral/Asset Current Remedial Legal Management Management nt/ O Collateral/Asset Supervision throughout the NPC managemen
Slide 65: Non-Performing Customers – Key Features
Non-Performing g Customers – Key y Features CEO Board Risk Committee NPCGD Head Northern Admin. & Corporate p SME SBB(1) HLB(2) Greece International e a o a O Ops. Division Segmentation of the NPC portfolio into four distinct portfolios: Corporate, SME, SBB and Household Clear allocation criteri
Slide 66: Evolution of Outstanding NPC Balances
Evolution of Outstanding g NPC Balances Outstanding Balances (€m) 31 Dec 2011 31 Dec 2012 30 Sep 2013 Amount Clients Amount Clients Amount Clients Amount Clients Amount Clients Amount Clients Corporate and Investment 663 1,291 993 1,631 1,311 1,882 638 41 1,949 1,923 Banking Small Business 1,069 16,
Slide 67: Historical Evolution of NPC Formation
Historical Evolution of NPC Formation Amounts (€m) and Number of Clients 31 Dec 2011 31 Dec 2012 30 Sep 2012 30 Sep 2013 Amount Clients Amount Clients Amount Clients Amount Clients 380 289 273 454 344 351 Group Corporate 306 and Investment Banking (GCIB) 223 8,776 5,757 460 6,593 507 7,037 650 Small
Slide 68: Geographical Distribution of NPC Portfolio
Geographical g p Distribution of NPC Portfolio Northern Greece Total Portfolio (as of 30 Sep 2013) 1,040m % to Total Region Portfolio Attica 71% Northern Greece 21% Aegean Sea Islands & Crete 2.6% Central Greece & Ionian Islands((1)) Central Greece & Ionian 3 4% 3.4% Islands 169m Peloponnese 2% Atti
Slide 69: Non-Performing Customers – Key Takeaways
Non-Performing Customers – Key y Takeaways y 1 NPCGD acts as remedial advisor, driven by culture of collaboration with customers 2 Enhanced borrower engagement throughout the workout cycle Increased autonomy and independence but at the same time close cooperation/synergies 3 with business partners 4
Slide 70: Liquidity and Funding
A eurobank Liquidity and Funding
Slide 71: Eurobank Group 3Q Funding and Liquidity Position
Eurobank Group 3Q Funding and Liquidity Position Current funding mix reflects the lack of wholesale funding resources for Greek banks Full usage of ECB eligible collateral but additional liquidity buffer for funding through ELA Low concentration of deposits - top 20 depositors account for only
Slide 72: Liquidity Buffer Analysis per Country
Liquidity q y Buffer Analysis y p per Country y Liquidity Buffer Breakdown (€m) (30 Sep 2013) Eurobank Eurobank Postbank Bancpost Stedionica Universal Total Greece(1) Cyprus Luxembourg (Bulgaria) (Romania) (Serbia) (Ukraine) Central Bank buffer 13,716 11,807 820 565 13 288 118 104 ECB eligible asset
Slide 73: Evolution of Deposit Base
Evolution of Deposit p Base Total Customer Deposits (€bn) Acquisitions of Sale of Poland Sale of Turkey TT & Proton 47.0 47.4 46.8 45.9 44.8 43.5 43.6 44.4 42.3 9.6 9.6 9.7 40.4 8.9 10.3 11.4 10.0 10.8 8.5 34 8 34.8 33.9 9.8 32.5 32.2 30.5 30.8 30.2 9.3 28.0 28.9 9.4 9.7 9.1 8.8 9.2 8.5 92 9.2 9.1 3
Slide 74: Significant Reduction in the Reliance on Eurosystem Funding
Significant Reduction in the Reliance on Eurosystem y Funding g Gradual Run-down on a Standalone Basis(1) Recent Acquisitions Improve Liquidity(2) Cost of Eurosystem funding (%) (Eurosystem funding, in €bn) 2.3% 1.6% 1.3% 0.8% -51% 34.0 30.1 27.2 22 6 22.6 23 3 23.3 21.2 21.8 21.1 20.7 19.8 18.1 15.
Slide 75: Commercial Funding Gap, ECB and ELA Pledged Collateral
Commercial Funding Gap, ECB and ELA Pledged Collateral Aggregate Group Funding Gap (€m) Eurobank Greece ECB Collateral (Cash Value) by (30 Sep 2013) Security Type (€m) (30 Sep 2013) Loans Cash collateral Non-financial corporates 621 290 Mandatory Commercial Reser e Reserve FFunding nding Gap 2 (€m)
Slide 76: Funding Platforms
Funding g Platforms EMTN Programme Covered Bonds Established in 1999 Two Programmes established in 2010 Outstanding Amounts Fully Retained €280m senior notes-wholesale Programme I – mortgage loans in EUR Outstanding Amount €2,450m €300m senior notes-clients Programme g II – mortgag
Slide 77: Subordinated Securities
Subordinated Securities As of 30 Sep, Eurobank has €345m of subordinated securities outstanding following the Liability Management Exercise of June 2013 An estimated €105m of these securities are held by retail investors, of which €57m by Eurobank clients Investors with Custody Investors with Cu
Slide 78: Retail Banking
A eurobank Retail Banking
Slide 79: Retail Banking – Business Model
Retail Banking g – Business Model Lean and modular model reflected in our organization; successfully adapting to changing market conditions (shift from commercial to remedial management) Customer – orientation backed by high quality and entrepreneurial management as well as multi – skilled staff
Slide 80: Delivering Differentiation vs. Competition
Delivering g Differentiation vs. Competition p Retail Banking Differentiating Elements Prompt P t reaction ti to t a deteriorating d t i ti environment i t by b creating ti ad dedicated di t d andd highly hi hl specialized i li d Organizational remedial company (FPS) Flexibility Swift change of
Slide 81: Greek Retail Lending
Greek Retail Lending g The acquisition of TT has improved the balance mix of the loan portfolio and consolidated Eurobank presence in the retail segment in line with other players Gross Loans Breakdown, Greece – 30 Sep 2013 (%) Total Retail Gross Loans – Greece (€bn) Total Gross Loans:45.7€bn Loan
Slide 82: Greek Retail Lending
Greek Retail Lending g Eurobank was one of the first entrants into consumer, mortgage and Small Business lending markets becoming quickly a leader in Greece; even after the deep restructuring of the Greek banking system, Eurobank has maintained its leadership position in consumer and SB lending Co
Slide 83: Greek Retail Lending
Greek Retail Lending g Low volumes of business, reflecting the challenging macroeconomic environment, stricter credit underwriting policies and client targeting g y focused on secured lending Business increasingly g (~70%) ( ) Production Evolution (€bn)(1) GDP Growth ((%)) -3.1% -4.9% -7.1% -6.4
Slide 84: Greek Retail Funds
Greek Retail Funds Strong distribution capabilities and sales culture confirmed by the success in Personal Banking, mutual funds and bancassurance Personal Banking, a significant franchise with: ~70k affluent clients, with ~€12bn managed funds through 420 specialized Relationship Managers accred
Slide 85: Greek Retail Deposits
Greek Retail Deposits p Recent TT and Proton acquisitions almost doubled retail deposit portfolio while slightly improving mix Greek crisis led to deposit outflows (in line with retail market) and subsequent pricing deterioration; however the situation gradually normalising due to macroeconomic
Slide 86: Greek Retail Other Funds
Greek Retail Other Funds Customer centric approach and strong commercial culture evidenced by two “known” success stories` Mutual Funds Bancassurance Leaders in the market: • 12 Unit Linked/Structured products 91% of total sales through branch network • No 1 in Greece in Unit linked products • Por
Slide 87: Branch Network in Greece
Branch Network in Greece Retail Network(1) (30 Sep 2013) Network’s Competitive Differentiation W ll l Well-placed dbbranches h iin prime i llocations ti with ith ffullll 1,218 deployment of direct channels 696 620 597 Dedicated organization to coordinate segment-related activities (commercial an
Slide 88: Alternative Channels
Alternative Channels Digital Channels Migration Data State of the art e-banking services including: – S Specialized i li d e-products d t offering, ff i e-deposit d it account, t virtual i t l prepaid id card, d value l added dd d services i % off T Total t l Transactions T ti – Additional special
Slide 89: TT and Proton Retail Integration Program
TT and Proton Retail Integration g Program g M i Achievements Main A hi t Preparation Detailed Planning Implementation 1. Integration synergies finalized and Aug Sep Oct Dec Apr validated by external consultant 2. Dual Brand Strategy guidelines decided Legal merger completed on 22/11 06/12 3. Proton
Slide 90: A Leading Franchise Poised to Become Even Stronger
A leading g Franchise Poised to Become Even Stronger g “Close to the Customer on the Outside Efficient on the Inside”.... ... Leveraging the Distinct Strengths of Each Bank • Innovation and business-orientation • Centralized & efficient operations • Strong g presence p in all market segments g • Exp
Slide 91: Further Potential through Existing Distribution Agreement with Hellenic Post
Further Potential can be Captured Through the Existing g Distribution Agreement g with Hellenic Post Hellenic Post Network: 784 Branches (445 with IT Infrastructure) • Significant opportunity to capitalize on Hellenic Post Post’ss extensive distribution No presence network to capture low-cost deposi
Slide 92: Our Retail Strategy for the New Era
Our Retail Strategy gy for the New Era FROM … TOWARDS … 1. Acquiring single-product “credit” 1. Building innovative multi-product 360o customers customer relationships 2. Competing for market share in loan 2. Competing for share of client wallet in a volumes in a fast growing environment deleveragin
Slide 93: Manifested in our Transformation Themes
Manifested in our Transformation Themes A Enhance Built B ilt around d client li t deposits d it andd daily d il banking b ki needsd Client- New client segmentation model along client size and revenue potential (e.g. according relationship to industry sector, export orientation for Small Busines
Slide 94: Household / Business Strategy
Household / Business Strategy gy Household Lending Outstandings(1) (€bn, 30 Sep 2013) Stop de-leveraging Maximize profit through higher margins Si Simplify lif product d t mix i Consumer Loans Maximize x-selling effectiveness Build new/ renegotiate existing partnerships 1 Focus on purpose
Slide 95: Greek Mortgage Loans – Business Strategy
Greek Mortgage g g Loans – Business Strategy gy Tap the promising market of home renovation/ energy improvement (green) loans, counterbalancing very low activity in residential mortgages Consolidate unsecured exposures to secured and selectively lend extra cash through MBCL Focus on improving
Slide 96: Greek Mortgage Loans – Loan Portfolio Overview
Greek Mortgage g g Loans – Loan Portfolio Overview Overall new production in line with market trends More than 85% of the portfolio consists of accounts below €100k M t Mortgage Lending L di Balances B l O Outstanding t t di (€bn) (€b ) E l ti Evolution off Spreads S d on Mortgage M t (2) (%) Ma
Slide 97: Greek Consumer Lending – Business Strategy
Greek Consumer Lending g – Business Strategy gy Focus on purpose specific loans, i.e. auto loans Strong focus on management of the new production quality Grow fees & commissions income mainly through credit & debit card business (issuing & acquiring) Origination Strategy Key Trends In unsecu
Slide 98: Greek Consumer Lending – Focus on Credit Cards
Greek Consumer Lending g – Focus on Credit Cards Grow issuing & acquiring businesses through strategic partnerships (co-brands, loyalty schemes) Grow fees & commissions income while decreasing client churn rates by developing value adding services Origination Strategy Key Trends Focus on major
Slide 99: Greek Consumer Loans – Loan Portfolio Overview
Greek Consumer Loans – Loan Portfolio Overview Market leader in Consumer Loans and new production at attractive spreads with a focus on secured lending and special purpose loans Targeting low risk clients with smaller tickets (based on experience of portfolio behavior during the crisis) C Consum
Slide 100: Greek Small Business Banking – Overview
Greek Small Business Banking g – Overview The Small Business Banking (SBB) segment , consisting of micro-enterprises and professionals, is a vital element of the Greek economy and Eurobank’s strategy, where we have been a long standing market leader Market Micro % of the Business Market “Micro”
Slide 101: Greek Small Business Banking – Business Strategy
Greek Small Business Banking g – Business Strategy gy Capitalizing on SB segment entails a two-pronged approach Farming Existing Client Base Targeted Client Acquisition High Fee & Commission Potential Portfolio Development Sector-focused Strategy from Existing Relationship Clients Significant oppo
Slide 102: Greek SBB Loans – Loan Portfolio Overview
Greek SBB Loans – Loan Portfolio Overview After years of volume growth, SBB is now focused on asset quality and targeted business development in specific industry sectors Portfolio deleveraging trend has already been reversed High level of portfolio collateralization (more than 90% is secured,
Slide 103: In Summary
In Summary y Eurobank Retail banking has all the essential elements in place for a quick turnaround on the back of the macro recovery Sizeable growth opportunities within our control 1. Significant untapped potential in our existing client base (built during the growth The right years), primarily in
Slide 104: Group Corporate and Investment Banking
Group Corporate and Investment Banking
Slide 105: Group Corporate & Investment Banking (GCIB) - Business model
Group Corporate & Investment Banking (GCIB) - Business model Client centric business model with segmentation based on client turnover and a separate special lending units Full spectrum p of services with risk and non-risk transactional p products,, supported pp by y independent p p product facto
Slide 106: Values & Principles
Values & Principles p Principles to Build a Sustainable Profitable Business Develop our business relying on a well balanced growth plan based on: Stable & consistent business principles Detailed multi year annual budgeting budgeting, bottom up business plan Risk undertaking & credit expansio
Slide 107: The Relationship Management Model
The Relationship p Management g Model Relationship Banking approach developed around a client centric servicing model; each client is assigned to a Relationship Manager in charge of monitoring/ developing the business and managing risks Relationship managers’ mission is to deliver the full spect
Slide 108: GCIB Integration Program
GCIB Integration g Program g I t Integration ti Program P K P Key Points i t Preparation Detailed Planning Implementation Proton & TT integration well underway. Aug Sep Oct Dec Apr Already in place: Common customer relationship Legal merger management (customers assigned to Units completed on 22/1
Slide 109: Portfolio Overview
Portfolio Overview Total GCIB Gross Loans(1) (€bn) Share of GCIB in Total Loan Portfolio (30 Sep 2013) # of customers(2) GCIB: Eurobank 15.5 28% Total GCIB: 33% (5) 16.9 1.0(3) 153 1.2 15 8 15.8 1.2(4) 300 GCIB: TT 1.0 14.3 2% Other 0.9 13.3 GCIB: Proton 67% 0.7 86 3% 8.7 8.3 Total: €45.7bn 7.3 7.0
Slide 110: Distribution by Sector and Concentration
Distribution by y Sector and Concentration Distribution by Sector (30 Sep 2013) Loan Portfolio Concentration (30 Sep 2013) Focusing on more resilient sectors. sectors Almost zero new exposure and Top 20 exposures((1)) account for 23% of the total GCIB portfolio deleverage in highly cyclical sect
Slide 111: Well Collateralized Portfolio
Well Collateralized Portfolio Secured(1) Lending g Portfolio % and Collateral Composition p Excl. TT & Proton Intensive efforts to secure the business 4% additional 55% resulted in an increase of portfolio 51% 48% exposure e posu e collateralization, co a e a a o , despite desp e PSIS losses osses
Slide 112: New Business Volumes Evolution
New Business Volumes Evolution Low volumes of new business, reflecting the challenging macroeconomic environment Excl. TT & Proton €2.5bn 9% €1.8bn 44% 13% 43% €1.1bn 8% 42% €0.6bn 47% €0.6bn 14% 4% 44% 49% 54% 50% 37% 42% Δ Dec 09 – Dec 08 Δ Dec 10 – Dec 09 Δ Dec 11 – Dec 10 Δ Dec 12 – Dec 11 Δ S
Slide 113: Extensive Effort to Re-price the Loan Book
Extensive Effort to Re-price p the Loan Book Significant effort to re-price the loan book since the onset of the financial crisis: overall spreads increased from 200bps in 2008 to 510 bps in 3Q 2013 A portion of the portfolio (~17%) – especially exposures with low credit rating – remains difficu
Slide 114: SME – Loan Portfolio Overview
SME – Loan Portfolio Overview SME Lending Balances Outstanding (€bn) Key Points Deleveraging (annualized) -5% 5% -12% 12% -5% 5%((1)) 7.8 Total SME portfolio amounts to €7.8bn, 51% of 0.3 GCIB portfolio 0.5 Robust & effective ff i relationship i i management model, based on Credit Risk & RAROC 8
Slide 115: Corporate (GCC & LC) – Loan Portfolio Overview
Corporate p ((GCC & LC)) – Loan Portfolio Overview Corporate Lending Balances Outstanding (€bn) Key Points Deleveraging (annualized) -1% -7% -6% -11%((1)) 6.9 Total Corporate portfolio amounts to €6.9bn, 45% of GCIB 0.7 portfolio 0.6 Group Corporate Clients (GCC) Integrated services to very large
Slide 116: Shipping – Loan Portfolio Overview
Shipping pp g – Loan Portfolio Overview Shipping Lending Balances Outstanding (€bn) Key Points Deleveraging (annualized) -18% 18% -11% 11% -33% 33%(1) Total Shipping portfolio amounts to €0.8bn, 4% of 1 0.8 GCIB portfolio 1 0.02 Robust & effective relationship management 1 0.10 model 1 12 1.2
Slide 117: Drill-down on Commercial Real Estate and Public Sector Exposures
Drill-down on Commercial Real Estate and Public Sector Exposures p (1) Exposure by Client Segment (€bn) (30 Sep 2013) Commercial Real Estate (30 Sep 2013) 1.2 Borrower Profile LTV Location Property 138m 38 <60% 8% 11% Other 7% 7m 61 – 70% 6% Other Industrial 6% 1.1 Over 25M 39% 13% Land 13% 71 – 85%
Slide 118: Deposits
Deposits p Sight g over Total Deposits p ((30 Sep p 2013))(1) Deposit p Balance Evolution ((€bn)) 48% 44% 7.7 7.6 37% 6.6 26% 19% 23% 3.6 2.2 2.6 0.4 0.5 (2) 2.0 0.2 (2) Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 4.4 0.5 4.0 3.6 0.7 0.8 3.2 Deposit Spread Evolution (bps)(1) 2.5 2.9 0.6 0.6 1.8 04 0.4
Slide 119: Profitability
Profitability y Since the onset of the financial crisis we have extensively re – priced the loan book, we have taken actions to boost our fees and commission income and we have significantly reduced the operating costs Despite the corrective actions we have taken, GCIB profitability has been hit
Slide 120: Pillars of the New Business Model
Pillars of the New Business Model Re-segment to focus on key clients and adapt coverage model Adaptive segmentation based on turnover, customer complexity and needs Establish / reinforce specialized lending units Specialized RMs by industry to allow for holistic customer advice Further strengt
Slide 121: Strengths to Leverage
Strengths g to Leverage g Skilled and highly qualified employees Momentum of achieved milestones – long-lasting long lasting client relationships Diversified distribution network Broad product portfolio that helps mitigate business concentration risk Innovation culture (market leader in introducing
Slide 122: Market Leader in Fee-generating Businesses
Market Leader in Fee-generating g g Businesses Corporate Transaction Banking (CTB) Debt Capital Markets & Investment Banking Services Superior service to corporate clients for their Leading position in Project Finance (Financial Advisor & MLA in most of transaction needs following a client centr
Slide 123: Executing Landmark Transactions
Executing g Landmark Transactions Greek Eurobond Market Debt Capital Markets Intralot Frigoglass Hellenic Petroleum OTE Hellenic Telecom K-POWER Advisory Services for Sale & Leaseback Co-Manager Co-Manager the Privatization of the 435 MW CCGT Greek Motorways Joint Lead Manager Co-Manager of 28 gover
Slide 124: Market Leader in Introducing Innovative Services
Market Leader in Introducing g Innovative Services Selected Product/ Service Innovations Pioneer in Export-Oriented Initiatives Pioneered Risk Advisory in collaboration with Eurobank Synonymous to Extrovert ((“ΕΞΩΣΤΡΕΦΕΙΑ”) ΕΞΩΣΤΡΕΦΕΙΑ ) & Innovative ((“ΚΑΙΝΟΤΟΜΙΑ”) ΚΑΙΝΟΤΟΜΙΑ ) Capital Markets team
Slide 125: Award Winning Teams – Recognition from Clients
Award Winning g Teams – Recognition g from Clients Cash Management Corporate E-Banking Best Domestic Cash Manager in Greece for Best Corporate/Institutional Internet Bank in 2013 (3rd time) Greece for 2013 (5th time) Trade Finance Customer Satisfaction Survey (June 2011) Best Trade Finance Bank in G
Slide 126: Capital Markets and Wealth Management
Capital Markets and Wealth Management
Slide 127: Capital Markets and Wealth Management at a Glance
Capital Markets and Wealth Management at a Glance Wealth Management offering based on consistent goals to build value, achieve market leadership and deliver sustainable returns Aligning effectively front line business development with support functions leveraging technology to upgrade quality of
Slide 128: Wealth Management Overview
Wealth Management g Overview Wealth Management Private Banking Asset Management Assets Under Management €6.1bn (Greek market leader) €2.8bn (Greek market leader) (Sept 2013) 3Q 2013 YTD €33.0m €18.0m Revenues(1) Three distinctive services for the client’s portfolio in all 65 mutual funds caterin
Slide 129: Award Winning Teams
Award Winning g Teams Private Banking Asset Management Best Private Bank in Greece for the years 2005- 06 07 09 from 06-07-09 f Euromoney E Survey S off Private Pi t Banking and Wealth Management Morningstar ratings: Best Private Bank in Greece for the years 2010 8 Funds through 2013 from World Fina
Slide 130: Private Banking Business Model
Private Banking g Business Model Holistic servicing model providing clients with all private banking products and services similar to the structure of international banks along with seamless service on the Eurobank banking platform Robust investment process supporting customer portfolio asset al
Slide 131: Private Banking – Key metrics
Private Banking g – Key y metrics AuM (€bn) Data as of September 2013 8.2 No of Grouped No of Private 8.0 AuM (€M) 7.4 7.3 7.3 Clients Bankers 1.2 0.7 6.7 6.8 6.1 0.8 0.3 0.8 6.1 1.0 1.3 1.0 0.9 Greece , 2,969 3,912 , 49 49 4.9 06 0.6 16 1.6 09 0.9 3.8 0.5 2.0 2.6 3.4 2.2 Luxembourg 2,242 1,270 10 6
Slide 132: Asset Management Business Model
Asset Management g Business Model Eurobank Asset Management M.F.M.C. resulted from the merger between Eurobank Asset Management S.A. and Eurobank Mutual Fund Management Company S.A. which took place in November 2011 The company offers superior investment services capitalizing on its investment m
Slide 133: Asset Management – Key Metrics
Asset Management g – Key y Metrics AuM (€bn) Achievements 11.5 Market Leader since 2008, a position which it retains today with a 1.0 9.6 market share of 26% 8.6 2.0 8.4 1.1 7.4 0.8 0.5 1.5 0.2 1.4 Assumption of the management of the mutual fund business of the 3.2 02 0.2 3.9 largest insurance c
Slide 134: Eurobank Private Bank Luxembourg
Eurobank Private Bank Luxembourg g Business Overview of Eurobank in Luxembourg Key Competitive Advantages of Eurobank Luxembourg Established in 1986, Eurobank Private Bank Luxembourg is a Luxembourg is among the very few EU-27 countries to subsidiary of Eurobank Greece. It is an authorized banki
Slide 135: Eurobank Cyprus
Eurobank Cyprus yp Business Overview of Eurobank in Cyprus Key Competitive Advantages of Eurobank Cyprus Established in Cyprus in August 2007, Eurobank Cyprus operates through a network of 7 banking centres in 4 major cities of Cyprus Multicultural Among the top 5 in terms of loans and deposits
Slide 136: Eurobank Cyprus – Key Metrics
Eurobank Cyprus yp – Key y Metrics Total Gross Loans (€m) AuM Evolution (€m) Mkt Share 2.2% 5.0% 3.7% 3.2% 3.2% 3.0% (%) 1,458 1,236 985 1,174 597 30% 830 449 356 938 605 62 426 11 257 294 334 330 28% 916 5 166 98 106 428 511 493 527 488 42% 39 8 323 59 2007 2008 2008 2010 2011 2012 9M 13 2011 2012
Slide 137: Global Markets & Treasury – A Winning Model Supporting Greece and the Region
Global Markets & Treasury – A Winning Model Supporting pp g Greece and the Region g Liquidity Liquidity is managed and monitored centrally Treasury ALM Bank wide interest rate exposures consolidated in Treasury Bank-wide Treasury, monitored centrally and managed locally FX Market making in all
Slide 138: Global Markets & Treasury – Key Metrics
Global Markets & Treasury y – Key y Metrics Revenue €m) Achievements 23.0% Active operations in 7 countries with commons strategic vision 21.3% 19.5% 17.7% 19.3% 17.2% 16.7% 14.0% 13.3% 13.1% 11.9% and direct reporting lines to Athens B Became a regional i l market k t leader l d in i FX FX, cre
Slide 139: Securities Analysis as at 30 Sep 2013
Securities Analysis y as at 30 Sep p 2013 Portfolio Overview (€bn) Greek Sovereign Risk (€bn) 1.5 5.5 0.3 0.5 0.5 18.6 1.2 10.2 4.0 2.1 1.8 GGB 1.8 5.5 3.4 GTB 2.2 Greek Other EFSF Corporate ABS/ Total Eurobank TT & Proton Total sovereign sovereign Covered bonds So ereign Exposures Sovereign E pos r
Slide 140: Centralized Risk Management
Centralized Risk Management g Central control of all position taking and liquidity is achieved through the common front and back office systems FX exposures: Group FX position is monitored and managed “real time” on line. Local Treasuries are mainly i l active ti iin llocall currencies i Key Con
Slide 141: Eurobank Equities
Eurobank Equities q Leading Brokerage House in Greece over the last Decade 1 1 2 2 1 1 1 1 1 1 Largest private client base in Greece with over 343 481 25.000 active private clients 317 210 205 60.9 139 50.6 83 52 66 33.7 2 Company of choice for some of the largest 30.8 27.9 18.6 11.0 9.0 7.7 inter
Slide 142: Institutional Transaction Services
Institutional Transaction Services Revenues (€m) Achievements 31 30 11. International awards 27 21 Leading Top Rated Custodian in Greece for 2012 (6th year) 19 17 Domestic Top Rated Custodian in Greece for 2012 (7th year) 13 13 Top Rated Cross-Border Custodian in Greece for 2012 (7th 9 year) Best Su
Slide 143: Global Markets Research
Global Markets Research Global Markets Research provides client-focused economic, market and investment research services Economic Bulletin Global Economics Greek Economy and Markets Dedicated team of economists in Greece with locally based analysts in subsidiary banks • Brief Summary of Key Mar
Slide 144: Capital Markets & Wealth Management Strategic Objectives
Capital Markets & Wealth Management Strategic Objectives j 1 Maintain market leading position in all Wealth Management and Capital Markets activities 2 Take advantage of Greek macro normalization to boost fee revenues Increase AuM taking advantage of the international trend of asset migration from o
Slide 145: Eurobank Presence in SEE
A eurobank Eurobank Presence in SEE
Slide 146: Eurobank Presence in SEE
Eurobank Presence in SEE Sribija Branches/BCs(1) 99/8 Branches/BCs(1) 53/1 Loans (€bn) 10 1.0 Ukraine Loans (€bn) 06 0.6 Deposits (€bn) 0.8 Deposits (€bn) 0.3 Personnel(2) 1,438 Personnel(2) 867 Ranking (No)(3) 7 Ranking (No)(3) >10 Romania Sertbia Serbia Bulgaria Branches/BCs(1) 186/8 Branches/BCs(
Slide 147: Past, Present and Future
Past, Present and Future “Growth" “Crisis" "Stabilization" "Stand Alone 2006 – 08 2008 – 10 2011–13 Viability“ 2014–17 Value adding Eurobank affected Initiatives implemented: Complete restructuring acquisitions combined largely by both local – Optimized network program with “greenfield” and
Slide 148: Eurobank Operations in Romania
Eurobank Operations in Romania Building g on Trust, Loyalty y y and Quality y Business Overview of Eurobank in Romania Key Competitive Advantages of Eurobank Romania Eurobank operates in Romania offering a wide range of A well-known, domestic, trusted, "savings" brand, positively iti l perceived
Slide 149: Key Financial Figures
Key y Financial Figures g Total Gross Loans (€m) Total Deposits (€m) Net L/D 214% 159% 184% 169% 162% 149% 132% 3 953 3,953 %) 3,418 3,324 3,142 3,218 2,955 2,417 2,817 2,473 1,864 1,813 ,8 3 1,833 , 1 761 1,761 1 741 1,741 1,825 2,189 2,070 1,991 1,874 1,435 1,428 1,798 64% 1,430 1,548 1,500 1,489
Slide 150: Eurobank Operations in Bulgaria
Eurobank Operations in Bulgaria Leading g Universal Bank With Long g Banking g History y and Strong g Brand Business Overview of Eurobank in Bulgaria Key Competitive Advantages of Eurobank Bulgaria Eurobank acquired through privatization (with Top tier A “universal” bank in Bulgaria, offering a
Slide 151: Key Financial Figures
Key y Financial Figures g Total Gross Loans (€m) Total Deposits (€m) Net L/D 142% 170% 159% 141% 135% 115% 105% (%) 3,347 3,097 2,957 2,874 2,760 2,620 2,233 2,438 2,181 1,943 2,023 2,021 1,959 1,893 1 864 1,864 1,804 1 687 1,687 1,729 1,677 1,301 1,642 63% 1,624 1,620 1,737 1,918 86% 1,500 1,473 1,
Slide 152: Eurobank Operations in Serbia
Eurobank Operations in Serbia Main Pillar of the Serbian Banking g System y Contributing g to Society y Business Overview of Eurobank in Serbia Key Competitive Advantages of Eurobank Serbia A major player in the Serbian Banking System with Eurobank operates in Serbia offering a wide range of est
Slide 153: Key Financial Figures
Key y Financial Figures g Total Gross Loans (€m) Total Deposits (€m) Net 1,145 1,182 L/D 145% 161% 140% 145% 132% 129% 118% 1 066 1,066 1 077 1,077 1,058 %) 1,028 848 824 596 792 792 786 680 741 590 574 533 522 697 51% 574 533 642 682 690 701 746 91% 593 585 498 466 476 503 524 507 49% 315 76 104 99
Slide 154: Overview of Eurobank Ukraine
Overview of Eurobank Ukraine Business Overview of Eurobank Ukraine Main Pillars of Eurobank Ukraine Strategy Eurobank operates in Ukraine offering banking products New business model developed to cope with the and services. It also operates in the real estate providing new challenging environmen
Slide 155: Appendix – Summary Financials
Appendix Summary Financials
Slide 156: Summary Financials
Summary y Financials Income Statement (€m) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 3Q13(1) Net Interest Income 426.4 373.4 358.3 302.8 276.7 301.0 310.3 323.3 Net Fees & Commissions 68.5 60.5 62.4 70.6 65.3 66.5 69.9 70.3 Non Core Income 41.5 50.0 -23.4 -35.4 0.6 -23.3 14.0 15.7 Total Operating Income 53
Slide 157: Key Figures of Int'l Operations – 9M13
Key y Figures g of Int’l Operations p – 9M13 ((€m)) Romania Bulgaria Serbia Cyprus Ukraine LUX Int’l Total Assets 3,923 3,234 1,581 2,902 735 1,068 13,239 Balance Balance Sheet Total Loans (Gross) 2,817 2,620 1,028 1,174 630 483 8,753 Sheet Total Deposits 1,833 2,232 824 2,462 342 774 8,467 Operatin
Slide 158: 9M 2013 – Summary per Segment
9M 2013 – Summary ypper Segment g ((€m)) Global & Capital, Other International Retail Corporate Wealth Mngt Capital & Elimination TT & PROTON Total Center Operations Markets Interest income 395 3 395.3 279 5 279.5 40 1 40.1 -92.4 92 4 -37.8 37 8 13 0 13.0 303 4 303.4 901 0 901.0 Net fee & commission
Slide 159: 9M 2012 – Summary per Segment
9M 2012 – Summary ypper Segment g ((€m)) Capital, Other & Global & International Retail Corporate Wealth Mngt Elimination Total Group Capital Markets Operations Center Interest income 518 8 518.8 301 8 301.8 47 3 47.3 53 9 53.9 -67.2 67 2 303 4 303.4 1 158 1 1,158.1 Net fee & commission income 24.8