Patria Bank SA · BVB:PBK
Patria Bank SA — Investor Presentation (March 2018)
23 slides from Patria Bank SA's investor presentation, March 2018
Slide 1: The Road Ahead
THE ROAD AHEAD Moving forward towards profitable growth Investors’ Presentation March, 2018
Slide 2: Executive Summary
1. Executive Summary 2
Slide 3: Developments in 2017
Developments in 2017 Completion of merger • Despite a 4 month delay, the merger between BCC & PBK was completed in May 2017 Completion of network • PBK now has 85 branches, spread optimally at national level, after an optimization process aimed to optimization eliminate the significant overlaps and
Slide 4: Evolution to date
2. Evolution to date 4
Slide 5: Patria Bank formed as a result of successful integration of three financial institutions
Patria bank formed as a result of successful integration of three financial institutions in three years (2015-2017) #1 Acquisition of 98% in MKB Nextebank by EEAF #2 acquisition of 100% in Patria Credit NBFI by #4 Merger of Patria Bank with BCC from MKB Bank (Hungary) Nextebank from RAEF* and BAF**
Slide 6: Patria Group comprises Patria Bank, Patria Asset Management and Patria Credit
Patria Group is currently comprised of Patria Bank, Patria Asset Management and Patria Credit, serving over 184,000 clients • EUR 771 million in total assets • Asset Manager with EUR 22.8 million in • Microfinance NBFI specialized in small total assets, and ~2,000 clients agro-producers and small ru
Slide 7: 2017: integration of BCC successfully completed
2017: integration of BCC has been successfully completed after running in parallel both a cost cutting program and business development in PBK Costs and staff figures of the merged bank higher vs. BCC by <3% Total of EUR 18M cost reductions achieved PBK OPEX in • 2016: cost cutting program in BCC st
Slide 8: Business model focused on tier 2 cities and unbanked areas
PBK’s business model is focused on tier 2 cities and unbanked areas, with loans generating a Net Interest Margin of 7.5% (2017) Strong growth in new lending [EUR ‘000] Lending growth in target market segments Key trends +35% Clients Customer Type New Loans 2017 – 2020 • Expanding market share in Tie
Slide 9: Strong focus on digitalization
Strong focus on digitalization – foundation for PBK’s business model • New platform for Internet Banking is currently under development, with rollout planned for 2018 • New Mobile Banking in 2018 • Technology is essential to Patria Bank if it is to • 95% of data center infrastructure has been upgrad
Slide 10: Balance sheet gaps vs. the banking sector
PBK’s balance sheet has gaps vs. the banking sector, mainly due to the large share of liquid assets maintained for strategic reasons PBK balance sheet structure • The relative large share of liquid assets is ASSETS LIABILITIES maintained for a strategic reason, i.e. potential acquisitions in a conso
Slide 11: High liquidity maintained for strategic reasons
While high liquidity has been maintained for strategic reasons, loans have not grown at full potential yet PBK assets structure [EUR M] – Total Assets EUR 771 M @31.Dec.2017 • High excess liquidity (EUR 175 million as of December 2017) has been a key element in PBK’s recent evolution; it has Liquid
Slide 12: Deposits remain stable at competitive costs
Deposits remain at stable levels and competitive costs, with the now fully developed PBK branch network serving a national clientele PBK equity and liabilities structure [EUR M] @31.Dec.2017 • PBK deposits have maintained “stickiness” in the recent Deposits as of Dec’17 years (deposits remained larg
Slide 13: Actual P&L results close to budget
Operationally, PBK achieved actual P&L results close to budget (which included an acquisition of a EUR 100m performing portfolio, unfulfilled) P&L structure, IFRS [EUR ‘000] 2017 operational results in line with the budget [EUR ‘000] Other income NBI OPEX NBI NFCI 33,984 32,294 NII Budget Actual OPE
Slide 14: Strong and experienced board and management team
Strong and experienced board and management team with successful M&A track record 10 10 8 1 1 Horia Manda Bogdan Merfea Daniela Iliescu Nicolae Surdu Vasile Iuga Chairman of the CEO & Board Board Member Board Member Board Member Board Member Managing Partner- Former CEO and Ex-Managing Axxess Capita
Slide 15: Patria Bank's future
3. Patria Bank’s future 15
Slide 16: Romanian market most underpenetrated and fragmented in Europe
The Romanian market is the most underpenetrated and fragmented in Europe, with a market need that is fundamental to PBK’s strategy Lowest credit penetration (2017) Relatively fragmented 139% 1.9% 1.7% 1.3% 63% 59% 55% 0.9% 0.9% 33% 28% Bulgaria Hungary Romania Poland Czech Republic EU CZ BG PL HU RO
Slide 17: Strategic approach to growth perspectives
Strategic approach to growth perspectives ORGANIC GROWTH ACQUISITION OPPORTUNITIES • Classic model -> 85 full bank branches spread • Distressed banks nationally • Lines of business • 3rd party distribution model by means of • Performing portfolios alternative distribution channels and partnerships S
Slide 18: New loan generation set to grow at 32% CAGR by 2020
New loan generation/ annum set to grow by a CAGR of 32% by 2020, with SME taking the lead New loan generation capacity per year [EUR M] • Loan generation capacity has increased Actuals in parallel with sales efficiency 8.3% 8.1% 8.0% improvements; distribution assumed 7.9% maintaining the 85 branch
Slide 19: Strategic objectives for 3 year horizon
Strategic objectives for 3 year horizon: 28% CAGR for net loans by 2020, reaching EUR 600 million and EUR 1 billion in total assets Net loans and total assets evolution [EUR ‘000] • Total assets are expected to reach EUR 1 B by 2020, on an 1,039,685 optimized structure of Balance Sheet 928,308 771,2
Slide 20: Merged Bank will break-even in 2018
The Merged Bank will break-even in 2018 and grow profitable until fully deploying excess liquidity C/I 115% 91% 75% 64% RoE -19% 1.3% 6.7% 12% 2017 2018 2019 2020 NBI OPEX CoR* PBT • The Bank plans to reach break-even and become marginally profitable in FY’2018; • Profitability gains momentum as the
Slide 21: Share Capital Increase in 2018
Share Capital Increase in 2018 Total EUR 31 M Capital Increase in 2018, out of which EUR 27 m new money in 2018, as follows: • EUR 13 M under the on-going share capital increase process, expected to end of May 2018, of out which EUR 8.65 M is expected to be new money (the amount of EUR 4.35 is old s
Slide 22: Q&A
Q&A 1. What is the level of solvency? • As of 31 Dec. 2017 the Tier 1 own funds (CET1) ratio is 9.85% and the total own funds are approx. 11% • At the end of 2018, following the expected capitalization plans, the forecasted level of total own funds will be 17% 2. What will be the impact of IFRS9 ove
Slide 23: Contact details
Contact details PATRIA BANK SA Social Headquarters: 31 Ion Brezoianu Actor, floors 1, 2 and attic, sector 1, Bucharest Real Headquarters: 42 Pipera Road, Globalworth Plaza Building, floors 7, 8 and 10, sector 2, Bucharest Investor Relations and Financial Institutions Dept. Phone: 0372538725 Email: c