Eurobank S.a. · ATHEX:EUROB

Eurobank — Eurobank Ergasias Services and Holdings — Q1 2021 Earnings Presentation

54 slides from Eurobank's earnings presentation, May 27, 2021

  1. Slide 1: 1Q 2021 Results

    emassnia Holdings 1Q 2021 Results 27 May 2021

  2. 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 Ergasias Services and Holdings S.A. (“Eurobank Holdings”) and its 100% subsidiary Eurobank S

  3. Slide 3: Table of contents

    Table of contents 1Q2021 results highlights 3 Segmental analysis 9 1Q21 results review 14 Asset Quality 21 ESG commitments and performance 25 Appendix I – Supplementary information 31 Appendix II – Macroeconomic update 38 Appendix III – Glossary 48 Page 2

  4. Slide 4: 1Q 2021 results highlights

    1Q 2021 results highlights Page 3

  5. Slide 5: 1Q21 results

    1Q21 results Highlights Key financials Net profit1 €72m in 1Q21 €m 1Q21 1Q20 Δ(%) 1Q21 4Q20 Δ(%) 1  Core pre-provision income (PPI) up 3.0% y-o-y at €218m; up 0.7% q-o-q Net interest income 334.7 339.4 (1.4) 334.7 329.3 1.6  NII down 1.4% y-o-y at €335m; up 1.6% q-o-q Commission income 98.7 92.3 6

  6. Slide 6: Pre-provision income (PPI)

    Pre-provision income (PPI) Core PPI and other income (€ m) Δ PPI (q-o-q, € m) 3 63 184 197 13 Other income 224 213 218 212 216 5 57 60 60 413 65 59 SEE (10) 166 Greece 147 154 157 158 6 231 1Q20 2Q20 3Q20 4Q20 1Q21 (184) PPI per region (€ m) 397 413 58 63 Δ ΝΙΙ 4Q20 PPI 1Q21 PPI Δ other income Δ com

  7. Slide 7: Asset quality

    Asset quality NPEs formation1 (€ m) NPEs ratio (%) 30 (6,784) (129) (343) 117 Δ NPEs stock (q-o-q, € m) 28.9% 33 72 SEE 6 66 15.3% 14.9% 14.0% 14.2% Greece (5) (46) (77) 7.4% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q21 pro- 1Q20 2Q20 3Q20 4Q20 1Q21 forma for Mexico Loan loss provisions (€ m) Provisions / NPEs (%)

  8. Slide 8: Capital position

    Capital position 16.3% CET1 FBL3: 15.5% 25bps 12.0% (55bps) CET1 FBL3: (30bps) (5bps) (15bps) 2.5% Tier II 11.9% 15.3% CET 1 13.0% 4Q20 CAD IFRS 9 & other Regulatory DTC amortization Other 1Q21 PBT 1Q21 CAD 1 transitions adjustments RWAs 40,237 (82) 63 (32) 6142 40,800 (€ m) Capital 6,554 (235) (105

  9. Slide 9: Funding and liquidity

    Funding and liquidity Highlights Deposits (€ bn)  Group Deposits up by €1.0bn q-o-q, o/w €0.7bn in Greece 83.4% 81.6% 80.1% 79.1% Net Loans /  Repos at €0.2bn in 1Q21, down €3.8bn y-o-y 77.7% Deposits ratio  TLTRO at €8.8bn, at -100bps rate 48.3 47.3 46.2 45.3 45.2  LCR at 140.6% 13.4 13.1 12.4

  10. Slide 10: Segmental analysis

    A) urobank Holdings Segmental analysis | Pageo

  11. Slide 11: Eurobank Group segmental analysis

    Eurobank Group segmental analysis: Earnings generation diversified in different segments in Greece and regionally Key metrics (1Q21) Net profit1 (q-o-q, € m) Net 171 Assets RWAs TBV 2020 Profit1 RoTBV2 135 (€ bn) (€ bn) (€ m) RoTBV (€ m) 61 31 Greek Greek banking 12 Banking 50.2 31.8 2,949 31 4.2% 1

  12. Slide 12: Eurobank Group Investment Real Estate Portfolio

    Eurobank Group Investment Real Estate Portfolio Big boxes & 1Q21 Office Mixed use Retail Logistics Special use Residential Total supermarkets No. of assets (#) 42 17 74 45 9 11 2 200 Market Value (€ m) 384 184 161 433 86 63 13 1324 % of total MV 29% 14% 12% 33% 6% 5% 1% 100% MV / GLA (€ /sqm) 1,327

  13. Slide 13: Bulgaria key metrics

    Bulgaria key metrics1 1Q21 Highlights PPI and provisions (€ m)  Net profit €17m in 1Q21  Core pre-provision income (PPI) up 2% q-o-q at €30m 32 29 31 26 30 PPI  NII stable q-o-q at €45m (9) (11) (10) (10) Provisions  Commission income up 1% q-o-q at €14m (19)  Operating expenses down 2% q-o-q 

  14. Slide 14: Cyprus key metrics

    Cyprus key metrics1 1Q21 Highlights PPI and provisions (€ m)  Net profit €15m in 1Q21  Core pre-provision income (PPI) down 1% q-o-q at €21m 26 26 23 22 22 PPI  NII down 2% q-o-q at €25m (2) (1) (6) (2) Provisions  Commission income up 14% q-o-q at €8m (6)  Operating expenses q-o-q up 6%  Zero

  15. Slide 15: 1Q21 results review

    A) urobank Holdings 1Q21 results review | Page 14

  16. Slide 16: Balance Sheet composition

    Balance Sheet composition Assets (€ bn) Liabilities and Equity (€ bn) 68.6 68.6 5.3 Equity Net loans and 37.5 advances to customers Trading & • Core 67% Other other Tbills Deposits 48.3 • Time 33% issuers 2% 1% 18% Securities 9.3 GGBs 48% PP&E, intangibles and other assets 4.9 Other Derivatives 2.2

  17. Slide 17: Loans

    Loans Gross loans (€ bn) Performing loans (€ bn) 45.0 35.2 35.3 34.5 34.7 40.6 40.7 40.9 41.1 7.7 31.8 7.5 7.7 SEE 7.3 7.4 1.1 7.8 8.0 8.1 8.3 7.1 SEE Greece 3.5 3.5 3.5 3.5 Greece 3.5 3.5 3.5 3.5 1.1 Senior notes 14.3 Senior notes 21.0 14.2 16.7 16.7 17.0 17.2 13.7 Business 13.6 Business 13.3 Mortg

  18. Slide 18: Net interest margin & spreads

    Net interest margin & spreads Net interest margin (bps) Deposit spreads (Greece, bps) 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Greece 194 204 188 187 190 Savings & Sight (55) (55) (59) (62) (61) SEE 255 231 226 219 216 Time (66) (59) (55) (58) (61) Group 208 210 197 195 196 Total (59) (56)

  19. Slide 19: Net interest income

    Net interest income NII breakdown (€ m) NII evolution (q-o-q, € m) Total NII 339 349 331 329 335 o/w Greece 244 260 240 239 244 o/w SEE 96 90 91 90 91 21 (8) (1) 1 335 3 341 329 Loan margin 367 364 349 348 (11) TLTRO 5 10 10 33 0 Bonds & other 58 60 57 55 43 4Q20 1Q21 TLTRO Deposits SEE Bonds & othe

  20. Slide 20: Commission income

    Commission income Commission income breakdown (€ m) Commission income per region (€ m) 109 58bps over assets 109 99 99 95 22 95 92 92 26 88 88 15 22 Lending 16 26 SEE 24 19 26 23 34 31 37 Network transactions 33 & credit cards 29 83 72 Greece 17 11 6 Capital Markets 7 71 6 14 Bancassurance & 66 64 1

  21. Slide 21: Operating expenses

    Operating expenses OpEx per region (€ m) OpEx breakdown (€ m) Cost-to-Income 50.7% 48.3% Greece 52.4% 48.0% 220 213 213 222 216 SEE 46.5% 49.0% 57 56 56 57 57 SEE Greece (3.1%) 163 158 157 165 158 Greece 220 216 (2.2%) 26 Depreciation 29 1Q20 2Q20 3Q20 4Q20 1Q21 19 10 20 Headcount & branches (Greece

  22. Slide 22: Asset Quality

    Holdings Asset Quality | Page 21

  23. Slide 23: NPEs formation per segment (Greece)

    NPEs formation per segment (Greece) Mortgages (€ m) Consumer (€ m) 22 12 (17) (5) 7 (24) (41) 1 2 4 (67) (57) (80) (66) (83) (85) (81) (3) (2) (4) (2) (5) (105) (9) (123) (10) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1Q19 1Q18 2Q18 3Q18 4Q18 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

  24. Slide 24: NPEs metrics (Group)

    NPEs metrics (Group) 90dpd bridge to NPEs (€ bn) NPEs per region Provisions & Provisions/ Total NPEs NPEs ratio collaterals / NPEs NPEs 0.3 (€ bn) (%) (%) (%) 5.8 Consumer 0.7 32.1 99.1 110 1.2 Mortgages 1.6 16.5 49.9 131 4.4 Small Business 1.1 26.9 60.1 126 Total Retail 3.4 21.2 63.3 125 Corporate

  25. Slide 25: Loans' stage analysis (Group)

    Loans’ stage analysis (Group) Loans’ stage breakdown Provisions stock over NPEs Δ 60.6% 62.5% 61.9% 61.9% (€ bn) 1Q20 2Q20 3Q20 4Q20 1Q21 55.6% q-o-q Stage 1 25.7 28.3 28.8 28.7 29.1 0.4 Stage 2 6.2 6.1 5.8 6.4 6.2 (0.2) Stage 3 13.0 6.2 6.1 5.7 5.8 0.1 (NPEs) 1 Total 44.9 40.5 40.7 40.9 41.1 0.2 1Q

  26. Slide 26: ESG commitments and performance

    ESG commitments and performance https://www.eurobank.gr/en/group/esg-environment-society-governance Page 25

  27. Slide 27: Aspiration to be leaders in sustainability

    Aspiration to be leaders in sustainability Place emphasis on Placing ESG at the core of market position and developing financial decision sustainable financing to framework to promote environmental and social purposes meet market trends Market orientation Promote ESG financing Design and offer produ

  28. Slide 28: Finance flagship projects that enhance sustainable growth

    Finance flagship projects that enhance sustainable growth Crete-Attica Electric Power Interconnection Hellinikon Project Participating in the financing of the largest urban development project in A €1bn visionary project. Europe. Phase A of the Hellinikon development is a ground breaking project Eur

  29. Slide 29: Promote the green transition and social awareness

    Promote the green transition and social awareness Renewable Energy  As a sector with strong momentum and significant growth prospects, RES has a prominent position in our Sources (RES) strategy. Eurobank financed projects totaling €0.7bn until the end of 2020  In the area of photovoltaic (PVs), ac

  30. Slide 30: Participating in major initiatives driving sustainability

    Participating in major initiatives driving sustainability Key highlights  Signatory to the 10 Principles of UN Global Compact since 2008 and actively support the Sustainable Development Goals.  UNEP FI participants since 2005 and became signatories to the Initiatives & partnerships Principles for

  31. Slide 31: ESG ratings

    ESG ratings Eurobank is included in all major Indeces ESG ratings 2018 2019 2020 2021 MSCI ESG Rating BB BB BB BBB Systainalytics 28.5 S&P Global 45 33 32 Vigeo - Eiris 38 FTSE4Good Emerging Index 🗸 🗸 🗸 Environment: 2 Environment: 2 ISS ESG Quality Score Social: 3 Social: 3 (score 1-10, 1…

  32. Slide 32: Appendix I – Supplementary information

    Appendix I – Supplementary information Page 31

  33. Slide 33: Summary performance

    Summary performance Balance sheet – key figures Income statement – key figures €m 1Q21 4Q20 €m 1Q21 4Q20 Gross customer loans 41,073 40,874 Net interest income 334.7 329.3 Provisions (3,551) (3,477) Commission income 98.7 108.8 Loans FVTPL 25 27 Operating income 446.5 635.1 Net customer loans 37,546

  34. Slide 34: Consolidated quarterly financials

    Consolidated quarterly financials Income Statement (€ m) 1Q21 4Q20 3Q20 2Q20 1Q20 Net Interest Income 334.7 329.3 331.3 349.5 339.4 Commission income 98.7 108.8 95.1 87.8 92.3 Other Income 13.1 197.0 184.3 63.4 2.7 Operating Income 446.5 635.1 610.8 500.6 434.4 Operating Expenses (215.5) (221.7) (21

  35. Slide 35: Consolidated financials

    Consolidated financials Income Statement (€ m) 1Q21 1Q20 Δ y-o-y (%) Net Interest Income 334.7 339.4 (1.4) Commission income 98.7 92.3 6.9 Other Income 13.1 2.7 >100 Operating Income 446.5 434.4 2.8 Operating Expenses (215.5) (220.2) (2.2) Pre-Provision Income 213.0 214.2 7.9 Loan Loss Provisions (1

  36. Slide 36: SEE operations key figures – 1Q21

    SEE operations key figures – 1Q211 Bulgaria Cyprus Serbia Lux Sum Assets 6,232 6,964 1,715 1,936 16,847 Gross loans 4,138 2,083 1,239 598 8,058 Balance Sheet Net loans 3,998 2,035 1,194 598 7,825 (€m) NPE loans 275 72 79 0 426 Balance Deposits 5,411 5,553 985 1,479 13,428 Sheet CAD2 22.0% 25.3% 24.0

  37. Slide 37: Gross loans (SEE, € m)

    Gross loans (SEE, € m) Bulgaria Cyprus 4,053 4,138 3,856 3,898 3,988 2,019 2,083 1,910 1,953 1,983 632 662 168 176 547 575 617 151 155 164 Other Consumer 1,089 1,114 1,150 1,167 1,197 Mortgage 1,759 1,798 1,819 1,851 1,906 Business Business 2,220 2,209 2,221 2,254 2,278 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20

  38. Slide 38: Deposits (SEE, € m)

    Deposits (SEE, € m) Bulgaria Cyprus 5,411 5,578 5,438 5,418 5,462 5,553 5,228 4,684 4,696 4,897 1,636 1,685 1,930 1,955 Time Time 2,335 2,190 2,034 1,601 1,628 1,619 3,593 3,726 Core 3,532 3,598 3,064 3,096 3,269 3,242 3,248 3,384 Core 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Serbia Luxembo

  39. Slide 39: Appendix II – Macroeconomic update

    Appendix II – Macroeconomic update Page 38

  40. Slide 40: Recent macro & market developments and FY-2021 outlook

    Recent macro & market developments and FY-2021 outlook  Greek economy contracted by -8.2% in 2020. Gradual but accelerating recovery expected: according to EC’s spring forecasts (May-21), real GDP growth is expected at 4.1% and 6.0% in 2021 and 2022 respectively 2020 2020 2021* 2022* GDP €bn nomina

  41. Slide 41: Gross Domestic Product

    Gross Domestic Product Annual Real GDP Growth Rate (% YoY and contribution in ppts of the demand components)  ELSTAT’s 1st estimate: FY20 real GDP decline of -8.2%, from +1.9% in 2019  According to EC’s spring forecasts (May-21), real GDP growth is expected at 4.1% and 6.0% in 2021 and 2022 respec

  42. Slide 42: Selected indicators of domestic economic activity

    Selected indicators of domestic economic activity ESI: steep drop in the 1st lockdown, started to improve since Mar- PMI manufacturing index: increased further – above the 50 units no- 21 (well below the EA) change threshold – in Apr-21 (well below the EA) Retail trade volume index: lower losses in

  43. Slide 43: Domestic Labour Market

    Domestic Labour Market Despite the deep recession, the 4Q average unemployment Government support policies led to a relatively mild rate dropped to 16.3% in 2020, from 17.3% in 2019 decrease of employment (in number of persons) Long term unemployment’s share in total unemployment The recovery of pro

  44. Slide 44: Real Estate prices continued to increase in 2020 despite the recession

    Real Estate prices continued to increase in 2020 despite the recession Index of Apartment Prices Index of Retail and Office Prices 2009Q1 – 2021Q1 2010H – 2020H1 Source: BoG Page 43

  45. Slide 45: Pandemic fiscal measures and liquidity support in 2021: 8.7% of GDP

    Pandemic fiscal measures and liquidity support in 2021: 8.7% of GDP Greek government support measures aiming to tackle the effects of the pandemic at €7.6bn according to 2021 Budget; yet the prolonged pandemic duration and the extension of the nationwide lockdown up to April increased costs. Total m

  46. Slide 46: General government budget turned into sizable deficit in 2020

    After 4 consecutive years with an overall surplus, the GG budget turned into sizable deficit in 2020  ELSTAT’s 1st notification of fiscal data (Apr-21): GG balance at -9.7% of GDP in 2020 (+1.1% in 2019), GG Primary balance at -6.7% of GDP in 2020 (+4.1% in 2019) and GG gross public debt at 205.6%

  47. Slide 47: European policy response

    European policy response European level stimulus* Supervisory actions Next Generation EU Multi Year Financial • €1,850bn Pandemic Emergency Purchase Programme & €120bn QE (APP) Unemployment fund Framework 2021–27 initiative (SURE) Loans • PEPP eligibility waiver for GGBs (available amount at €37 bn)

  48. Slide 48: Bulgaria-Cyprus-Serbia macro-trajectory for 2021-2022

    Bulgaria-Cyprus-Serbia macro-trajectory for 2021-2022 Strong growth rebound on the cards after the end of the pandemic-induced recession  Covid-19 induced recession turned out milder in 2020 for regional economies than initially expected. EU forecasts envisage a strong rebound in 2021-2022  Bulgar

  49. Slide 49: Appendix III – Glossary

    Appendix III – Glossary Page 48

  50. Slide 50: Glossary – Definition of Alternative Performance Measures

    Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures/ ratios This document contains financial data and measures as published or derived from the published consolidated financial statements which have been prepared in accordance with International Finan

  51. Slide 51: Glossary – Definition of Alternative Performance Measures

    Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures/ ratios Adjusted net profit: Net profit/loss from continuing operations after deducting restructuring costs, goodwill impairment, gains/losses related to the transformation plan and income tax adjust

  52. Slide 52: Glossary – Definition of Alternative Performance Measures

    Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures/ ratios Liquidity Coverage Ratio (LCR): The total amount of high quality liquid assets over net liquidity outflows for a 30-day stress period. Loans to Deposits: Loans and Advances to Customers at am

  53. Slide 53: Glossary – Definition of Alternative Performance Measures

    Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures/ ratios Provisions/NPEs ratio: Impairment Allowance for Loans and Advances to Customers, including impairment allowance for credit related commitments (off balance sheet items) divided by NPEs at the

  54. Slide 54: Investor Relations contacts

    Investor Relations contacts Dimitris Nikolos +30 214 4058 834 E-mail: dnikolos@eurobankholdings.gr Yannis Chalaris +30 214 4058 832 E-mail: ychalaris@eurobankholdings.gr Christos Stylios +30 214 4058 833 E-mail: cstylios@eurobankholdings.gr E-mail: investor_relations@eurobankholdings.gr Fax: +30 210

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