Eurobank S.A. · ATHEX:EUROB

Eurobank — Eurobank EFG — 9M 2011 Earnings Presentation

28 slides from Eurobank's earnings presentation, Nov 28, 2011

  1. Slide 1: Nine Month 2011 Results

    SW-EUB022-2007-03-19-CMD-V7 November 28, 2011 Nine Month 2011 Results

  2. Slide 2: 3Q 2011 results highlights

    3Q 2011 results highlights Page 2  3Q11 net profit at €13m, 9M11 operating net profit* at €89m.  9M11 New Europe profits at €50m. Bottom line contribution more than doubles yoy.  Pre-provision profit at €346m in 3Q11 up 7%qoq.  3Q11 NII at €513m flat vs. the previous quarter. Client NII up 2.8%q

  3. Slide 3: 3Q 2011 results highlights cont.

    Page 3 3Q 2011 results highlights cont.  The General Meetings of Alpha Bank and Eurobank EFG approved overwhelmingly the merger of the two banks with a share exchange ratio 5:7.  Legal merger is expected to be completed within December.  New shares, including the reverse split, to commence tradin

  4. Slide 4: Key Steps of the Alpha Eurobank Integration Plan

    Key Steps of the Alpha Eurobank Integration Page 4 Plan  Well crafted 3-phase integration plan  Synergies fully phased over 3 years  Support from international integration experts throughout the process:  Divisional teams with members from both banks to prepare detailed integration plan Pre-Clos

  5. Slide 5: Alpha Eurobank capital plan

    Alpha Eurobank capital plan Page 5 Pro-forma Core Tier 1(1) ratio as presented on Aug 29th To be revised after the merger +1.5% 14.0% +2.2% 12.4% €3.2bn €4bn 10.6% 10% CT1 +0.4% +0.5% €0.8bn 9% CT1 target (1.3%) set by EBA Balance Sheet Asset Management Disposals Deleveraging RWA Optimization Pro-fo

  6. Slide 6: Loan book de-risking continues – Deposits in New Europe continue to grow

    Loan book de-risking continues – Deposits Page 6 in New Europe continue to grow Loans – Gradual selective de-risking; Deposits evolution – outflows slow down More secured asset composition 53.2 53.4 52.7 43.9 52.3 52.3 41.2 40.4 New 7.0 10.6 10.3 10.3 New Europe 10.3 10.6 Europe 8.1 8.3 34.9 33.9 Gr

  7. Slide 7: Liquidity initiatives underway

    Page 7 Liquidity initiatives underway  Greek deposit outflows of €1.3bn in 3Q11; NE deposits up €350m.  ECB exposure declined to €17.5bn at end-3Q11, while ELA funding increased to almost €8bn.  GGB exposure stable vs. 2Q11 at €7.0bn.  Available Eurosystem eligible liquidity buffers at €5bn.  N

  8. Slide 8: Profitability review

    a NS Page 8 iN mB Eurobank EFG Profitability review

  9. Slide 9: Pre-provision income rebounds in 3Q11 qoq – returns to 3Q10 levels driven by core

    Pre-provision income rebounds in 3Q11 qoq – Page 9 returns to 3Q10 levels driven by core elements -1% +7% +12 +4 +9 350 346 330 335 324 -2 ΔΝΙΙ ΔFees ΔOpEx ΔOther Core: +9m Core: +14m Core: +11m 3Q10 4Q10 Recurring 2Q11 3Q11 1Q11 €m

  10. Slide 10: Total NII remains flat while client NII rises 3% qoq

    Total NII remains flat while client NII rises 3% Page 10 qoq 563 569 552 Total NII 524 515 515 512 513 503 Client NII* 526 511 512 498 498 475 478 479 468 Loan margin 576 579 584 591 595 599 607 619 569 Capital & bonds 77 66 69 65 61 58 51 50 43 Interest rate gapping -26 -22 -14 -16 -17 -21 -27 -33

  11. Slide 11: Asset re-pricing continues; client deposit spreads stable

    Asset re-pricing continues; client deposit Page 11 spreads stable Evolution of Greek spreads (%) Evolution of NIM (%) 3Q 10 4Q10 1Q11 2Q11 3Q11 NIM (%) 3Q10 4Q10 1Q11 2Q11 3Q11 Core deposits -0.10 0.04 0.10 0.39 0.43 Group 2.53 2.55 2.54 2.54 2.51 Time deposits & Greece 2.26 2.26 2.25 2.22 2.24 -2.1

  12. Slide 12: Commissions pick up on better lending related fees

    Commissions pick up on better lending Page 12 related fees Commission income evolution Commission income breakdown 104 100 94 104 9 100 8 89 7 86 94 11 6 7 Non-banking services 89 86 11 8 13 7 Insurance 10 7 11 9 Mutual Funds & AUM 12 14 11 68 9 68 Capital Markets 62 12 51 56 9 Greece 22 24 21 Netwo

  13. Slide 13: Successful costs containment delivers 6%yoy reduction, exceeding target

    Successful costs containment delivers 6%yoy Page 13 reduction, exceeding target Quarterly cost* as % of net loans on Ongoing effort to reduce OpEx consistent decline 2.74% -16% Overall 15.0% 2.59% 2.47% YoY OpEx 2.38% reduction 6.1% 3.0% 5.9% 2.31% FY09 FY10 9M11 3Q08 3Q09 3Q10 2Q11 3Q11 * annualize

  14. Slide 14: Asset quality trends: 90+ formation stable, NE performance improves further

    Asset quality trends: 90+ formation stable, Page 14 NE performance improves further 90dpd formation stabilizes 90dpd ratio 3Q10 4Q10 1Q11 2Q11 3Q11 Group 9.6% 10.2% 11.4% 12.5% 13.8% 656 644 Greece 9.2% 9.9% 11.3% 12.5% 14.0% 596 598 New Europe 11.3% 11.5% 12.0% 12.5% 12.7% 562 534 518 Loans loss pr

  15. Slide 15: Asset quality in New Europe: gross 90+ formation stabilizes

    Asset quality in New Europe: gross 90+ Page 15 formation stabilizes 16.4% 14.3% 13.9% 12.1% 12.9% 12.4% 17.7% 10.5% 8.5% 14.6% 14.3% 15.2% 6.4% 5.9% 13.1% 13.4% 4.3% 10.8% 11.6% 3.6% 90+ over av. 7.6% 9.5% 6.9% loan book 5.3% 5.0% 3.2% 3.6% 71 80 63 56 39 42 39 46 44 35 37 38 34 33 32 25 Gross 90+ 1

  16. Slide 16: New Europe core profits remain strong

    Page 16 New Europe core profits remain strong Solid core profitability 184 181 182 188 176 €47m 136% 19 3Q10 4Q10 1Q11 2Q11 3Q11 NE Core income 15 109 113 110 110 105 €20m 13 9 9 3Q10 4Q10 1Q11 2Q11 3Q11 NE OpEx 7 66 61 1 59 59 57 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 NE provis

  17. Slide 17: New Europe 3Q11 net profit at €16m

    Page 17 New Europe 3Q11 net profit at €16m Net Profit 11.5 10.4 8.1 8.7 8.8 8.7 7.9 7.5 7.3 5.9 6.0 6.8 5.9 5.7 5.1 5.4 5.7 3.8 3.3 3.3 2.0 2.8 2.6 1.2 1.6 1.8 0.8 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 C

  18. Slide 18: New Europe performance: self funded & consistently profitable

    New Europe performance: self funded & Page 18 consistently profitable Total net loans Net profit on track +2.6 22 19 20 10.4 15 16 9.6 9.8 10.0 13 7.4 9 0 -2 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 FY07 FY08 FY09 FY10 9M11 € bn €m Total deposits  New Europe operations consistently +3.7 profita

  19. Slide 19: Appendices

    iN mB Eurobank EFG Appendices

  20. Slide 20: Financial Ratios

    Page 20 Financial Ratios Financial Ratios 9M11 1H11 9M10 Net Interest Margin 2.53% 2.54% 2.66% Cost-Income 47.0% 47.8% 45.8% NPLs (% of loans) 11.0% 10.1% 7.6% NPLs coverage 51.6% 50.5% 51.7% Provision Charge (% of net loans) 2.62% 2.59% 2.49% EBA Core Tier Ι Ratio 8.3%* 8.5%*/10.0% 9.1% Tier 1 10.0

  21. Slide 21: Summary Figures

    Summary Figures Page 21 Summary Figures Group (excl. POL) (€ m) 3Q10 4Q10 1Q11 2Q11 3Q11 Net Interest Income 512.0 514.7 503.4 515.1 513.2 Net Fees & Commissions 104.0 100.3 93.9 85.6 89.3 Non Core Income 50.1 48.1 45.2 19.8 31.3 Total Operating Income 666.1 663.1 642.5 620.6 633.9 Operating Expense

  22. Slide 22: Key figures of New Europe operations

    Key figures of New Europe operations Page 22 Romania Bulgaria Serbia Cyprus Turkey Ukraine NE Δyoy% Total Assets 4,571 3,455 1,850 2,928 2,402 689 15,899 -1.7% Balance Sheet Balance Total Loans (Gross) 3,303 2,880 1,121 1,150 1,501 613 10,568 +4.3% Sheet Total Deposits 1,839 2,006 879 2,564 832 281

  23. Slide 23: Adequate provisions & high collateral coverage

    Adequate provisions & high collateral Page 23 coverage Coverage 41.1% 51.5% 7,195 Consumer 1,810 Lending 5,732 90dpd NPLs NPL provisions provisions Value of Total NPL recovery coverage coverage collaterals coverage rates 1,810 Mortgages 1,314 69% 69% >10% ~80% 40% Consumer Lending 1,052 2,954 Busine

  24. Slide 24: Cumulative provisions of €4.5bn since the crisis

    Cumulative provisions of €4.5bn since the Page 24 crisis Cumulative provisions & Cost of Risk Net loans remained virtually flat since FY08 with falling consumer loans 9.17% 917bps 6.28% Total Loans 51.8 (net) 51.3 51.2 3.78% 1,314 4,526 49.3 1.64% 1,273 41.6 42.8 44.1 43.3 1,090 849 Consumer 10.2 le

  25. Slide 25: 9M 2011 – Summary per Segment

    Page 25 9M 2011 – Summary per Segment Wealth Global & Capital Capital & Elimination (€ m) Retail Corporate Management Markets Other Center New Europe Total Interest income 801.5 387.3 10.5 -40.2 -42.5 0.0 415.3 1,531.8 Net fee & commission income 26.1 44.3 29.4 28.2 -2.02 0.0 97.0 223.0 Net Insuranc

  26. Slide 26: 9M 2010 – Summary per Segment

    Page 26 9M 2010 – Summary per Segment Wealth Global & Capital Capital & Elimination (€ m) Retail Corporate Management Markets Other Center New Europe Total Interest income 824.9 347.1 2.2 17.8 -38.1 0.0 434.1 1,587.9 Net fee & commission income 43.9 45.0 35.7 48.3 2.45 0.0 101.0 276.2 Net Insurance

  27. Slide 27: Contacts

    Page 27 Contacts EFG Eurobank Ergasias, 20 Amalias Avenue, 105 57 Athens, Greece Fax: +30 210 3337 160 E-mail: investor_relations@eurobank.gr Internet: www.eurobank.gr Reuters: EFGr.AT Bloomberg: EUROB GA Investor Relations  Dimitris Nikolos Tel: +30 210 3337688 E-mail: dnikolos@eurobank.gr  Yanni

  28. Slide 28: Disclaimer

    Page 28 Disclaimer This communication has been prepared by and is the sole responsibility of EFG. It has not been reviewed, approved or endorsed by any third party retained by EFG. This communication is provided for information purposes only. The contents of this communication do not constitute or f

Eurobank EFG — 9M 2011 Earnings Presentation on 6ix