First Investment Bank Ad · BSESOF:FIB
First Investment Bank Ad — Q3 2020 Earnings Presentation
36 slides from First Investment Bank Ad's earnings presentation, 2020
Slide 1: First Investment Bank Q3, 2020
FIRST INVESTMENT BANK Q3, 2020
Slide 2: Table of contents
Table of contents Section 1 Country Profile and Bulgarian Economic Overview 3 Section 2 Fibank and the Bulgarian Banking System 9 Section 3 Fibank at a Glance 17 Section 4 Key Figures and Loan Portfolio 21 Section 5 Company Profile 26 Section 6 Аppendix 33 2
Slide 3: Country Profile and Bulgarian Economic Overview
SECTION 1 COUNTRY PROFILE AND BULGARIAN ECONOMIC OVERVIEW 3
Slide 4: Country profile
Country profile • Full name: Republic of Bulgaria • Memberships: European Union (since 2007), NATO (since 2004) • Population: 7.2 M • Capital: Sofia • Area: 110,994 sq km (42,855 sq miles) • Official language: Bulgarian • Traditional religion: Orthodox Christianity ROMANIA • Monetary unit: Bulgarian
Slide 5: Bulgarian economy had strong results over past few years
Bulgarian economy had strong results over past few years with high growth and low unemployment BULGARIAN GDP INFLATION & KEY DRIVERS OF GROWTH ABOVE EU UNEMPLOYMENT THE BULGARIAN AVERAGE DECREASED SINCE 2012 ECONOMY HICP & Unemployment • In q4, 2019, the country's economy GDP real growth (%, 2013-20
Slide 6: Bulgarian Economic Overview
Bulgarian Economic Overview Macroeconomic indicators 2014 2015 2016 2017 2018 2019 Q2, 2020 EUR M 42, 824 45,675.2 48,619.8 52,309.2 56,086.2 60,674.5 13,835 GDP Growth, % 1.8 4.0 3.8 3.5 3.1 3.4 -8.2 EUR M 530.6 55.1 1 550.9 1 825.0 773.7 2 452.3 777.0 Current account % of GDP 0.1 0.1 3.2 3.5 1.4 4
Slide 7: Macro environment: Key indicators historic development
Macro environment: Key indicators historic development Indicators 2014 2015 2016 2017 2018 2019 Q2, 2020 Gross domestic product (BGN million) 83,634 88,571 94,130 98,361 107, 925 118,669 27,058 Gross domestic product, real growth 1.3 3.6 3.9 3.6 3.1 3.4 (8.2) (%) - Consumption, real growth (%) 2.2 3
Slide 8: Mid-term macro forecast
Mid-term macro forecast MACRO ASSUMPTIONS FAVOURABLE MACRO ENVIRONMENT 2019-2021F IN THE MID TERM (2019-2022F) Forecast 2019, Ministry of Positive assumptions of the economic development during Finance 2019 Q2, 2020 2021F 2022F the period 2019-2022; Stable growth in GDP to slow down in q1, 2020
Slide 9: Fibank and the Bulgarian Banking System
SECTION 2 FIBANK AND THE BULGARIAN BANKING SYSTEM 9
Slide 10: The banking sector: banks and foreign branches operated in the country
The banking sector: 24 banks & foreign branches operated in the country. Fibank in Top5 banks at September 2020. GROUP 1: TOP 5 BANKS GROUP 2: OTHER BANKS TOTAL ASSETS MARKET SHARE TOTAL ASSETS MARKET SHARE (Q3’20, BGNm) (Q3’20%) (Q3’20, BGNm) (Q3’20%) UniCredit Bulbank 23,099 19.4% Raiffeisenbank 9
Slide 11: Current Status of the Bank System
Current Status of the Bank System Banking Sector as at 31 March 2020 у/oy 2014 2015 2016 2017 2018 2019 Q3, 2020 Bank system assets, BGN M 85 135 87 524 92 095 97 807 105 557 114 201 119 222 Growth of assets in the bank system,% (0.7) 2.8 5.2 6.2 7.9 8.2 6.9 Bank system profit, BGN M 746.3 898.4 1 2
Slide 12: Fibank and the Bulgarian Banking System
Fibank and the Bulgarian Banking System Fibank and the Banking Sector as at 31 September 2020 in BGN M Sept'19 Sept'20 Growth Banking system 111,509 119,222 6.9% Assets Fibank 9,626 10,477 8.8% Deposits (other than from Banking system 88,808 96,583 8.8% credit institution) Fibank 8,475 8,847 4.4% De
Slide 13: Fibank is top player in assets, loans and deposits
Fibank is top 5 player in assets, loans and deposits at September 2020. Committed to innovation & product leadership TOTAL ASSETS LOANS DEPOSITS Market share (Q3/20 & 2019) Market share (Q3/20 & 2019) Market share (Q3/20 & 2019) 4 5 5 13
Slide 14: Increased market shares in consumer loans and retail deposits
Increased market shares in consumer loans & retail deposits at September 2020 as part of long-term strategy. RETAIL CONSUMER MORTGAGE CORPORATE DEPOSITS LOANS LOANS LOANS Market share (Q3/20 & 2019) Market share (Q3/20 & 2019) Market share (Q3/20 & 2019) Market share (Q3/20 & 2019) * * * * 3 3 5 6 *
Slide 15: Fibank: Market Share and Market Position
Fibank: Market Share and Market Position Assets Deposits (other than from credit institution) Market share Market share 11.6% 10.2% 9.9% 10.5% 10.3% 10.8% 10.4% 9.6% 9.6% 8.7% 8.8% 8.8% 8.8% 8.8% 9.5% 9.5% 9.2% 8.4% 2012 2013 2014 2015 2016 2017 2018 2019 q3, 2020 2012 2013 2014 2015 2016 2017 2018
Slide 16: Fibank: Market Share and Market Position
Fibank: Market Share and Market Position Profit Loans to non-banks Market share Market share 31.6% 11.5% 10.7% 10.5% 10.3% 10.7% 10.0% 10.2% 8.9% 8.1% 9.3% 7.1% 7.3% 7.7% 5.1% 5.5% 3.5% 1.4% 2012 2013 2014 2015 2016 2017 2018 2019 q3, 2020 2012 2013 2014 2015 2016 2017 2018 2019 q3, 2020 Growth y/y
Slide 17: Fibank at a Glance
SECTION 3 FIBANK AT A GLANCE 17
Slide 18: Fibank at a Glance
Fibank at a Glance After years of leading successfully First Financial CORPORATE GROUP STRUCTURE Brokerage House (FFBH) (a leading non-banking financial FIRST INVESTMENT BANK AD institution on the Bulgarian capital market), mr. Ivailo Parent company Mutafchiev and mr. Tseko Minev established on Octo
Slide 19: Fibank at a Glance
Fibank at a Glance 2003 – 2005: Fibank entered into10 Subordinated term debt agreements for the total amount of EUR 28 mln. included in the Tier 2 capital. In August 2005, the Bank issued its first perpetual subordinated bonds with par value of €27 mln. included in the Tier 2 capital. The arranger o
Slide 20: Fibank at a Glance
Fibank at a Glance Human Resources Domestic network As at 30 September 2020, Fibank clients are served in 134 outlets all over the country Regional presence * Fibank has 1 branch in Cyprus Fibank Cyprus branch has operated since 1997, initially mainly in the area of corporate banking. Over the years
Slide 21: Key Figures and Loan Portfolio
SECTION 4 KEY FIGURES AND LOAN PORTFOLIO 21
Slide 22: Key Figures: Income Statement
Key Figures Income Statement BGN (thousands) FY 2016 FY 2017 FY 2018 FY 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Net interest income 307 623 247 578 250 885 230 696 57 998 56 934 57 519 56 587 59 265 Net fees & commissions income 88 498 98 851 93 546 103 230 23 936 31 311 23 468 21 323 25 452 Ne
Slide 23: Key Figures: Balance Sheet
Key Figures Balance Sheet BGN M Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Liquid assets 2 383 2 921 2 700 2 554 2 961 BGN M 2016 2017 2018 2019 Q3 2020 Loans and advances to customers 5 871 5 777 5 953 5 932 6 029 Total assets 8 852 8 643 9 238 10 200 10 477 Other assets 1 372 1 502 1 493 1 512 1 487
Slide 24: Key Figures: Key Ratios
Key Figures Key Ratios Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Overall cap adequacy 18.00% 18.80% 19.57% 19.69% 22.40% Tier I cap adequacy 18.00% 18.80% 19.57% 19.69% 22.40% CET1 adequacy 15.07% 15.00% 15.86% 15.99% 18.71% ROE (after tax) 9.85% 14.60% 4.02% 4.58% 5.04% LCR 215.00% 198.25% 214.09% 19
Slide 25: Loan Portfolio
Loan Portfolio Loan portfolio by sectors of economy Loan portfolio by business lines Corporate customers; 53.84% Small and medium enterprises; 13.08% Retail customers; Microlending; 30.34% 2.74% Corporate customers Small and medium enterprises Microlending Retail customers Corporate Loan portfolio a
Slide 26: Company Profile
SECTION 5 COMPANY PROFILE 26 4S Y
Slide 27: Fibank aspires to be one of the best banks in Bulgaria
Fibank aspires to be one of the best banks in Bulgaria, recognized as innovative & customer-oriented bank STRONG COMPETITIVE BUSINESS MODEL IN LINE VISION AHEAD TO GROW ADVANTAGES SUPPORTIVE WITH BANK MISSION FORWARD IN RETAIL & SME TO OUTPACE PEERS RETAIL BANKING Fibank aspires to be Emphasis o
Slide 28: Multi-channel distribution network
Multi-channel distribution network with adequate balance between physical locations & remote banking channels PHYSICAL REMOTE DISTRIBUTION DISTRIBUTION MULTI-CHANNEL CHANNELS DISTRIBUTION NETWORK CHANNELS Branch network is the New integrated e- main channel for Physical channels Remote channels
Slide 29: Cooperation with the IFC
Cooperation with the IFC: Successful CG & RM 2015 enhancement project during 2015 Implementation Project IFC COOPERATION CORP.GOVERNANCE RISK MANAGEMENT MILESTONES DELIVERABLES DELIVERABLES In 2010, Fibank asked the IFC to prepare a diagnostic assessment Fibank introduced full CCO Fibank intro
Slide 30: Organizational structure ensures effective running of key functions
Organizational structure ensures effective running of key functions & clear separation of duties. SUPERVISORY BOARD (Chair: Evgeni Lukanov, Deputy Chair: Maya Georgieva, Members: Georgi Mutafchiev, Radka Mineva, Jordan Skortchev, Jyrki Koskelo) AUDIT PRESIDING RISK REMUNERATION COMMITTEE COMMITTEE C
Slide 31: Top 3 Player: 27 years of stable development
Top 3 Player: 27 years of stable development with focus on innovation and customer experience Fibank Fibank issued Fibank Fibank Fibank Fibank first in Fibank Launches Fibank was Albania EUR200m realized acquired MKB the Balkans its Smart Lady welcomed established established as Eurobonds. the Union
Slide 32: Fibank customer profile: 91% retail customers
Fibank customer profile: 91% retail customers, 62% in 25-55 age group. Strong potential for cross selling CUSTOMERS GREW 0.33% DURING YOUNG & WELL-BALANCED Q3, 2020 TO REACH 1.209M CUSTOMER PROFILE Total number of customers, thousands +0.25% 1.209 1.206 1.190 1.174 1.160 1.141 2015 2016 2017 2018 20
Slide 33: Appendix
SECTION 6 APPENDIX (Ml feeeeey ee Wr LER Ee —— (it {_/ = oe mons | (th en | Ble nnnene| one Qi ene on:
Slide 34: Awards
Awards Best Bank in Bulgaria Quality of Service 2010 2002 Bank of the year by market share, by Bank of 2003 Bank of the Customer, 2011 2006 2012 the year association by the influential Bulgarian daily “Pari” 2008 2009 (“Money”) 2001 2011 Bank of the year by Bank of the year 2007 The best customers s
Slide 35: Awards
Awards Brand/ Products/ Web/Other awards 2007 Best public company on the Bulgarian 2008 Stock Exchange, by "Dnevnik" 2004 Financial product of the year, by International newspaper 2005 Finance Exhibition “Banks, Investments, Most Innovative Banking Product 2006 2014 (Credit and Debit Card) by Global
Slide 36: Awards
Awards “Product of the Year” – Debit card for Brand/ Products/ Web/Other awards 2018 2019 children and teenagers - category “Bank cards” 2017 “Product of the Year” b2b awards 2018 Debit card for children and teenagers - category 2018 Category “Socially responsible campaign” “Bank cards” 2017 Consume
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