Optima Bank Sa · ATHEX:OPTIMA
Optima Bank Sa — H1 2024 Earnings Presentation
42 slides from Optima Bank Sa's earnings presentation, Aug 1, 2024
Slide 1: Optima bank 1H 2024 Results
Optima bank 1H 2024 Results 1 August 2024
Slide 2: 1H 2024 results in a nutshell
1H 2024 results in a nutshell Net Profit ROTE Loans Deposits Capital 1H 2024 Fully Loaded reported: 1H 2024: Total Capital €69.0m 26.7% €3.0bn €3.7bn 15.8% (+57% YoY) Loans Δ Deposits Δ €1.0bn €0.9bn (+50% YoY) (+34% YoY) Executive Summary 2
Slide 3: Key P&L items
Key P&L items €mn 1Η 2024 1Η 2023 YoY 2Q 2024 2Q 2023 YoY NII 91.5 60.7 51% 47.0 33.4 41% NFI 19.1 14.3 33% 9.3 7.5 24% Core income 110.6 75.0 47% 56.3 41.0 38% Opex (26.6) (24.0) 10% (12.5) (12.3) 2% PPI 94.8 59.3 60% 49.8 33.0 51% Impairments (7.2) (5.4) 34% (2.4) (1.2) 95% Profit Before Tax 87.8
Slide 4: KPIs
KPIs €mn 1Η 2024 1Η 2023 2Q 2024 2Q 2023 NIM 4.36% 4.17% 4.37% 4.45% NFM 0.91% 0.99% 0.87% 1.00% Cost to Core income 25.4% 32.3% 24.7% 30.0% Cost of Risk 52bps 58bps 33bps 26bps Tangible Equity €537mn €288mn €537mn €288mn ROTE 26.7% 21.5% 27.2% 24.5% Loans/Deposits 81.5% 72.7% 81.5% 72.7% LCR 263% 2
Slide 5: The loan book grew 50% YoY
The loan book grew 50% YoY Loan Book Trajectory Gross Loans Evolution €mn €mn Corporate Retail 3,062 2,793 2,458 759 2,236 701 2,044 667 570 546 2,092 2,303 1,666 1,791 1,499 1H 2023 9M 2023 FY2023 1Q 2024 1H 2024 Y-t-d Optima bank +€604mn (+24.6%) Market +€1.25bn (+1.1%) * * Private sector only Seg
Slide 6: Sustained high level of new loan generation
Sustained high level of new loan generation Consistently high loan disbursements 1H 2024 New Loan Disbursements €mn €mn 1,222 1H 2024 642 565 580 478 483 493 2,018 FY 2023 1,386 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Strong new loan disbursements for yet 1H 2024 new loan generation
Slide 7: Deposits picked up pace in Q2
Deposits picked up pace in Q2 Deposits grew 34% YoY Time vs Demand deposits €mn Corporate Retail 3,715 3,331 3,120 3,192 2,778 47% 34% 43% 41% 49% 47% 43% 51% 49% 55% 2,519 2,005 2,155 2,074 1,810 53% 57% 51% 49% 45% 968 1,045 1,187 1,175 1,196 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024 1H 2023 9M 2023
Slide 8: The Balance Sheet has expanded by 41% YoY
The Balance Sheet has expanded by 41% YoY 1H 2024 Balance Sheet Tangible Equity (€m) €mn €mn 1H 2024 FY 2023 Δ 1H 2023 Δ Cash 759 605 153 512 247 499 32 532 537 Securities 602 677 (74) 545 58 144 Net Loans 3,029 2,431 598 2,021 1,008 356 356 Assets 4,528 3,868 660 3.209 1,319 243 Deposits 3,715 3,19
Slide 9: AuM increased by €781mn YoY
AuM increased by €781mn YoY Assets Under Management €mn +27% YoY 3,681 3,329 166 2,900 167 154 2,697 2,492 2,169 476 579 395 182 194 239 1H 2023 FY 2023 1H 2024 Mutual Funds Bonds Stocks Other AuM include assets from the brokerage business, PB and mutual funds subsidiary and incorporate market movem
Slide 10: Ample liquidity with zero ECB funding
Ample liquidity with zero ECB funding Strong Liquidity Metrics HQLAs 1H 2024 LDR 73% 71% 76% 83% 82% Government Other bonds 19% securities LCR NSFR 262.6% 6% 242.8% 229.1% 225.9% 189.9% €827mn 129.6% 130.4% 131.7% 124.0% 128.8% Cash & Cash at Central Bank 75% 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024
Slide 11: Optima bank vs the market
Optima bank vs the market Optima bank Market* ROTE 26.7% 14.3% EU peers @13.1%** NIM 4.36% 2.79% Cost to Core Income 25.4% 33.1% Depos Growth YoY 34% 1.1% Loan Growth YoY 50% -2.9% NPE ratio 1.0% 4.1% DTC/CET1 0% 55% * Factset, average 4 Greek systemic banks as of 1Q 2024 * * Factset, average of the
Slide 12: Customer satisfaction remains world class
Customer satisfaction remains world class NPS (Net Promoter Score) Consistently high NPS 12M rolling 87,76 50 60 40 30 70 20 80 7,07 10 83,87 90 2022 2023 2024 5,17 0 100 • NPS measures the loyalty of customers to a company. Detractor Passive Promoter • First developed in 2003 by Bain and Company Ma
Slide 13: New FY 2024 profit guidance
New FY 2024 profit guidance Updated Guidance Previous Guidance 1H 2024 y-t-d Net Profit >€134mn >€124mn €69mn ROTE >24% >20% 26.7% Executive Summary 13
Slide 14: Financial Analysis
Optima bank Financial Analysis
Slide 15: 1H 2024 Core Income grew 47% YoY driven by both NII and commissions
1H 2024 Core Income grew 47% YoY driven by both NII and commissions 1H 2024 NII grew 51% YoY Net fees grew 33% YoY NIM 4.17% 4.36% NFM 0.99% 0.91% Financial Analysis 15
Slide 16: NIM remains at elevated levels
NIM remains at elevated levels NII grew 6% QoQ NIM trajectory NIM 4.48% 4.37% 4.58% 4.48% 4.45% 4.44% 4.37% 4.03% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Financial Analysis 16
Slide 17: 2Q 2024 NII +41% YoY
2Q 2024 NII +41% YoY NII Breakdown €mn 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Loans 32.8 38.4 43.8 47.1 51.4 +57% YoY Fixed income 4.0 4.9 6.2 6.4 6.1 Deposits -5.4 -8.0 -9.4 -10.7 -13.3 CB & Interbank 2.2 3.0 3.0 1.9 3.0 Other -0.2 -0.2 -0.2 -0.2 -0.2 Total 33.4 38.3 43.3 44.5 47.0 Financial Analy
Slide 18: 1H 2024 Commissions grew 33% YoY
1H 2024 Commissions grew 33% YoY Net fees breakdown Fee margin €mn 1H 2023 2H 2023 1H 2024 Loans 3.0 3.9 4.0 LGs 4.7 6.0 6.3 1.00% 1.00% 1.01% 0.99% 0.95% Brokerage 3.5 3.7 4.3 0.87% Mutual Funds 1.2 1.4 1.8 Other 1.9 2.8 2.8 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net Fees 14.3 17.8 19.1 Lo
Slide 19: Cost to Core Income remained below 30%
Cost to Core Income remained below 30% Operating expenses Cost to Core Income 469 481 500 512 535 FTEs 34.4% 18.5 30.0% 2.2 28.0% 14.4 14.1 26.3% 26.0% 24.7% 12.3 1.7 12.5 5.6 1.9 1.8 2.1 5.2 4.9 4.1 3.0* 10.6 6.3 7.5 7.4 7.5 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q
Slide 20: Balance sheet structure 1H 2024 vs 1H 2023
Balance sheet structure 1H 2024 vs 1H 2023 Assets Liabilities & Equity €mn 3,209 4,528 4,528 3,209 138 172 Other 132 87 3,029 Other liabilities Net Loans 3,715 Deposits Securities 2,021 Due to banks Due from Banks 2,779 Equity Cash 602 545 107 94 93 652 548 45 419 298 1H 2023 1H 2024 1H 2024 1H 2023
Slide 21: Loan book structure and rates
Loan book structure and rates Loan Book rate Gross Loans Breakdown 1H 2024 Mortgages 15% Retail Other/Consumer 5% BB Revolving €759mn 31% BB Term 6.93% 7.04% 7.00% 6.83% 6.64% 49% 5.97% SMEs-Term 5.08% 23% Corporate 4.16% Large Corporate- Pass through Term 32% rate at 80% €2,303mn SMEs-Revolving 16%
Slide 22: No dependence on any specific sectors
No dependence on any specific sectors Loans per sector Mortgages 3.7% Consumer 0.7% Trade 13.1% Corporate/BB loans constitute Manufacturing 11.2% the overwhelming majority of the Real estate 11.1% loans with mortgages/consumer Energy 14.0% credit at just 4.4% of the book Construction 8.1% Financial/
Slide 23: Deposit mix and rates
Deposit mix and rates Deposits per category Deposits Movement Retail Time 36% Corporate Time 19% €3,715mn Corporate Demand 13% Deposits Rate 1.63% Retail 1.43% Demand 32% 1.30% 1.15% 0.86% 0.49% 0.15% 0.21% Deposit Beta 43% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Financial An
Slide 24: Securities book 11% higher YoY
Securities book 11% higher YoY Breakdown per classification Breakdown per issuer €60mn FVTOCI 10% GGBs 15% FVTPL €173mn 29% €601mn T-Bills 11% AMOC 61% €368mn €601mn Other Other 61% Sovereings 13% Securities over assets 544 628 676 719 601 17% 17% 17% 18% 13% 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024
Slide 25: Asset Quality
Optima bank Asset Quality
Slide 26: NPE ratio well below domestic and European peers
NPE ratio well below domestic and European peers NPE ratio Cost of Risk (bps) 26 64 21 73 33 1.11% 4.7 1.03% 3.4 2.4 0.54% 0.49% 0.45% 1.2 1.2 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Asset Quality 26
Slide 27: Solid total NPE coverage
Solid total NPE coverage NPE total coverage well above 100% Texas Ratio Cash coverage NPE collaterals/NPEs 166% 6% 6% 139% 4% 139% 3% 103% 2% 36% 27% 1H 2023 1H 2024 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024 Asset Quality 27
Slide 28: Capital
Optima bank Capital
Slide 29: Comfortable capital buffer vs new lowered capital requirement
Comfortable capital buffer vs new lowered capital requirement CAD requirement lowered to 13.10% CAD Trajectory Total Capital Requirements 2022 2023 2024 Pillar 1 Requirement 8.00% 8.00% 8.00% Pillar 2 Requirement (P2R) 3.40% 2.45% 2.10% Total SREP Capital Requirement (TSCR) 11.40% 10.45% 10.10% Capi
Slide 30: RWAs increase due to higher loan book
RWAs increase due to higher loan book RWA Density RWAs evolution €mn 76% 72% 69% 67% 64% 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024 Capital 30
Slide 31: Appendix
Optima Appendix
Slide 32: Income Statement
Income Statement in EURmn 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net interest income 33.4 38.3 43.3 44.5 47.0 Net fee and commission income 7.5 8.2 9.6 9.8 9.3 Core Income 41.0 46.5 52.8 54.3 56.3 Other income 0.1 0.1 1.1 0.5 1.4 Trading Income 4.2 5.0 4.0 4.2 4.7 Total Net Revenues 45.3 51.6 57.9
Slide 33: Income Statement
Income Statement in EURmn 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024 Net interest income 60.7 99.0 142.2 44.5 91.5 Net fee and commission income 14.3 22.5 32.1 9.8 19.1 Core Income 75.0 121.5 174.3 54.3 110.6 Other income 0.8 1.0 2.1 0.5 2.0 Trading Income 7.6 12.6 16.6 4.2 8.9 Total Net Revenues 83.5
Slide 34: Balance Sheet
Balance Sheet 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024 Cash & Cash at C.B. 512 709 605 414 759 Securities 545 637 676 722 602 Net Loans 2,021 2,210 2,431 2,764 3,029 PP&E 11 11 11 11 10 Intangible Assets 10 11 11 11 11 RoU assets 19 18 20 22 18 DTA 7 6 8 8 7 Other Assets 85 79 106 122 91 Total Assets
Slide 35: Macro backdrop to remain supportive in the mid-term
Macro backdrop to remain supportive in the mid-term CPI Jan 2022 - June 2024 GDP remains on positive trajectory 12.1% Average 2023: 3.5% 11.3% 12.0% Real GDP 8.8% 9.1% 7.2% 6.3% 4.6% 5.0% 3.5% 3.1% 2.8% 2.7% 1.6% 2.9% 1.9% 2.3% Nominal GDP Jan 22 Jan 23 Jan 24 Nov 22 Mar 22 May 22 Jul 22 Mar 23 May
Slide 36: Positive outlook for the Greek economy
Positive outlook for the Greek economy Greece returns to investment grade Greek Economic sentiment index Latest credit ratings 110.6 Last upgrade on 1/12 BBB- May 19 May 20 May 21 May 22 May 23 May 24 Nov 19 Nov 20 Nov 21 Nov 22 Nov 23 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Sep 22 Mar 23 S
Slide 37: Glossary 1/3
Glossary 1/3 Adjusted net profit: Net profit/loss adjusted after adding back one off expenses or deducting one off revenues Basic Earnings per share (EPS): Net profit attributable to ordinary shareholders divided by the weighted average number of shares Common Equity Tier 1 (CET1): Common Equi
Slide 38: Glossary 2/3
Glossary 2/3 Net Loans: Gross loans and advances to customers at amortised cost after ECL allowance for impairments Net interest income: the net interest income from interest bearing assets for the reported period Net interest margin (NIM): the net interest income, annualized divided by the av
Slide 39: Glossary 3/3
Glossary 3/3 Segment definitions Large corporate: Customers with turnover>€50mn serviced by RMs in the HQs SMEs: Customers with turnover between €7.5-€50mn serviced by RMs in the HQs BB (Business Banking): customers with turnover below €7.5mn, serviced by RMs in the branches Retail incorpora
Slide 40: Disclaimer
Disclaimer This is a presentation of an exclusively informative nature, intended to provide general information about the Bank. Your participation in any way in an event at which the presentation is shown or your access to it in any other way constitutes an acknowledgment that you have read the term
Slide 41: Contact information
Contact information Kostantinos Vatousis, Head of Strategy & IR kvatousis@optimabank.gr George Doukas, IRO gdoukas@optimabank.gr 32 Aigialeias & Paradeisou str. Maroussi Athens 15125 Greece OPTIMAr.AT OPTIMA GA ISIN: GRS533003000 www.optimabank.gr
Slide 42: Optima bank
Optima bank