Permanent Tsb Group Holdings Plc · EURONEXT:PTSB
Permanent Tsb — FY2012 Earnings Presentation
33 slides from Permanent Tsb's earnings presentation, 2013
Slide 1: Full Year Results 2012
0 Full Year Results: 2012 Jeremy Masding Group Chief Executive Glen Lucken Group Chief Financial Officer www.permanenttsbgroup.ie 2012 Full Year Results Page 0
Slide 2: Forward Looking Statements
Forward Looking Statements 1 A number of statements we make in our presentation and in the accompanying slides will not be based on historical fact, but will be “forward-looking” statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Actual results may differ mater
Slide 3: Agenda
Agenda 2 1 • Group Chief Executive’s Review 2 • Financial Review 3 • Arrears & Asset Management Unit 4 • Recap & Priorities 5 • Q&A 2012 Full Year Results Page 2
Slide 4: Group Chief Executive's Review
3 Group Chief Executive’s Review Jeremy Masding 2012 Full Year Results Page 3
Slide 5: 2012 – A Transformative Year
2012 – A Transformative Year 4 Overhaul: Group Architecture Board of Directors Senior Management Team Strategy Restructuring: Top to Toe Restructuring Plan - “The Bank + Two Strategy” Tackling Problems: Managing arrears Reducing the Standard Variable Rate (“SVR”) Tackling high cost b
Slide 6: 2012 – The Bank + Two Strategy
2012 – The Bank + Two Strategy 5 permanent tsb Asset Management Unit CHL (UK) 2012 Full Year Results Page 5
Slide 7: 2012 – The Bank + Two Strategy: permanent tsb
2012 – The Bank + Two Strategy 6 permanent tsb • Tackled the SVR issue • Grew the deposit base • Re-sized the business and cost base • Return to relevance • Mortgage Lending • Current Account 2012 Full Year Results Page 6
Slide 8: 2012 – The Bank + Two Strategy: Asset Management Unit
2012 – The Bank + Two Strategy 7 Asset Management Unit • Constructed a new arrears unit from scratch • Established a best in class operation • Recruited and trained specialists 2012 Full Year Results Page 7
Slide 9: 2012 – The Bank + Two Strategy: CHL (UK)
2012 – The Bank + Two Strategy 8 CHL (UK) • Provides excellent service levels • Optimises arrears position • Maintains optionality 2012 Full Year Results Page 8
Slide 10: Financial Review
9 Financial Review Glen Lucken 2012 Full Year Results Page 9
Slide 11: Financial Highlights
Financial Highlights 10 Rebuilding Profitability: Loss Before Exceptional Items: Reduced by 33% to €0.98bn. Impairments: Reduced by 38% to €0.89bn. Net Interest Margin: Reduced by 0.20% to 0.72%. Strengthening the Balance Sheet: Deposits: Grew by €2.2bn Wholesale Funding: Extended market t
Slide 12: Group Income Statement
Group Income Statement 11 €m 2012 2011 Variance Operating Loss Before Exceptional Items: Reduced in 2012 by 33% Total Operating 197 262 (65) Income Income: NIM at 0.72% remains a key area of Operating Expenses (286) (290) 4 focus for the restoration of profitability. Impairment Charges (891) (1,4
Slide 13: Total Operating Income
Total Operating Income 12 €m 2012 2011 NIM reduced by 0.20% to 0.72% in 2012. Key factors in this reduction Net Interest Income 300 405 (Before ELG) were: ELG Fees (165) (173) Reduction in the Standard Other Income 62 30 Variable Rate on ROI Mortgages. Total Operating Income 197 262 Increased
Slide 14: Impairments
Impairments ROI Residential Mortgages 13 Flow of impairment of ROI Mortgages €700m Flow of impairments on HLs down 51%. €600m €500m ROI HLs €400m ROI BTLs Flow of Impairments on BTLs down 62%. €591m €300m €580m €200m €284m Increased focus on arrears management. €100m €224m €0m 2011 2012 Set
Slide 15: Funding
Funding Balance Sheet Metrics 2012 2011 Loan book reduced by €1.9bn: 14 Total Assets €40.9bn €43.2bn €0.9bn increased impairment. Loans to Customers €31.8bn €33.7bn €0.7bn of net redemptions/repayments. Wholesale Funding: €0.3bn due to sale of ptsb Finance and FX Monetary Authorities €10.7bn €1
Slide 16: Capital
Capital 15 Core Tier 1 Capital Ratio Actions taken to improve the capital 18.0% ratios during 2012. Liability Management Exercise generating €224m 16.7% Debt buy-backs generating €27m. Sale of €180m of highly risk weighted Dec 11 Dec 12 securities, saving €123m in capital. Sale of Irish Li
Slide 17: Financial Highlights
Financial Highlights 16 Rebuilding Profitability: Loss Before Exceptional Items: Reduced by 33% to €0.98bn. Impairments: Reduced by 38% to €0.89bn. Net Interest Margin: Reduced by 0.20% to 0.72%. Strengthening the Balance Sheet: Deposits: Grew by of €2.2bn Wholesale Funding: Extended marke
Slide 18: Arrears & Asset Management Unit
17 Arrears & Asset Management Unit Jeremy Masding 2012 Full Year Results Page 17
Slide 19: Arrears
18 Arrears 2012 Full Year Results Page 18
Slide 20: Asset Quality: Portfolio Composition
Asset Quality: Portfolio Composition 19 ptsb Portfolio – Composition ROI Mortgages – Arrears Profile 100% Other CRE 16% In Arrears >90 Days 90% CHL 5% In Arrears <90 Days 80% 70% ROI BTL 60% 50% 40% Up to Date 79% 30% ROI HL 20% 10% 0% Composition of Loan Portfolio (% of € values) Arrears Profile of
Slide 21: Asset Quality: Arrears
Asset Quality: Arrears 20 Arrears Evolution Trend Evolution Data on Total NPLs No. of cases (Values in €m) Dec. 11 Dec. 12 30000 Total ROI Residential Mortgages 25,419 24,588 (HLs and BTLs) 25000 Fully Performing Loans 18,963 17,570 20000 As % of Total 75% 72% 25% 15000 Total NPLs 4,378 5,501 As % o
Slide 22: Asset Management Unit (AMU)
21 Asset Management Unit (AMU) 2012 Full Year Results Page 21
Slide 23: Asset Management Unit
Asset Management Unit 22 Asset Management Unit Non-Performing Loans Non-Core Loans Low Yielding Loans HL and BTL CRE, HL and BTL Other Portfolios, permanent tsb Finance (until disposal) 2012 Full Year Results Page 22
Slide 24: AMU: Workplan
AMU: Workplan 23 Workplan in place, with 2 of the 3 key steps delivered 2012 2013 Q2 Q3 Q4 Q1 Q… 1 2 3 Build Fix Focus Maintain Capability Front Book on Back Book Momentum Focus of last Current focus 9 months 2012 Full Year Results Page 23
Slide 25: AMU: Building Collections Capability
AMU: Building Collections Capability 24 Answering More Calls & Contacting More People Than Ever Before… 2012 Full Year Results Page 24
Slide 26: AMU: Fix the Front book
AMU: Fix the Front book 25 Monthly cash collected by AMU has more than doubled… 2012 Full Year Results Page 25
Slide 27: AMU: NPL Flow
AMU: NPL Flow … with new disciplines delivering an improvement across 26 all arrears buckets as well as in new NPLs flow HL + BTL Arrears Arrears Arrears NPL Provisions (1-30) (31-60) (61-90) (>90) Actual €m Actual €m ~43% 2500 1200 reduction 1,008 1,961 1000 2000 800 710 Dec 11 1500 Dec 11 577 600
Slide 28: AMU: Fix the Front book
AMU: Fix the Front book Frontbook ahead of the Restructuring Plan in 2012 27 2012 Full Year Results Page 27
Slide 29: AMU: Focusing on Back book
AMU: Focusing on Back book 28 2012 2013 Q2 Q3 Q4 Q1 Q2 Adjust resourcing Build Capabilities levels as required Optimise & sustain Fix the Front book benefits delivery 1 2BTLs: Develop Detailed Implement & Deliver Design & Plan 2 CRE: Develop Detailed Implement Design & Plan & Deliver Fix the Back bo
Slide 30: Recap & Priorities
29 Recap & Priorities 2012 Full Year Results Page 29
Slide 31: 2012 – A Transformative Year
2012 – A Transformative Year 30 ‘Enormous Progress’ made on an ‘Enormous Challenge’: A year of transformation on multiple fronts. Significant progress on a sustainable, credible Restructuring Plan. Significant progress made on stabilising financials The Bank + Two Strategy – a basis for maxi
Slide 32: 2013 – Building on the Foundation
2013 – Building on the Foundation permanent tsb AMU 31 ‘Returning to Relevance’ ‘Curing the Patient’ Back to Basics Cash collected NIM Long-Term Treatments Cost Management Provision Release CHL Group Centre ‘Maintaining Optionality’ ‘Standards and Service’ Service Excellence Professi
Slide 33: Thank You
32 Thank You 2012 Full Year Results Page 32
Permanent TSB Group Holdings — FY2012 Earnings Presentation on 6ix