Optima Bank Sa · ATHEX:OPTIMA
Optima Bank Sa — 9M 2024 Earnings Presentation
48 slides from Optima Bank Sa's earnings presentation, Nov 11, 2024
Slide 1: Optima bank 9M 2024 Results
Optima bank 9M 2024 Results 11 November 2024
Slide 2: 9M 2024 results in a nutshell
9M 2024 results in a nutshell Net Profit ROTE Loans Deposits Capital 9M 2024 reported: 9M 2024: TCR €108.2m 26.8% €3.3bn €4.1bn 15.7% (+50% YoY) Loans Δ Deposits Δ €1.1bn €1.0bn (+48% YoY) (+32% YoY) Executive Summary 2
Slide 3: Key P&L items
Key P&L items €mn 9M 2024 9M 2023 YoY 3Q 2024 3Q 2023 YoY NII 141.1 99.0 43% 49.6 38.3 30% NFI 29.3 22.5 30% 10.1 8.2 24% Core income 170.4 121.5 40% 59.8 46.5 29% Opex (41.2) (38.5) 7% (14.5) (14.4) 1% PPI 146.9 96.6 52% 52.0 37.2 40% Impairments (10.7) (8.7) 23% (3.6) (3.4) 6% Profit Before Tax 13
Slide 4: KPIs
KPIs €mn 9M 2024 9M 2023 3Q 2024 3Q 2023 NIM 4.28% 4.20% 4.20% 4.44% NFM 0.89% 0.96% 0.86% 0.95% Cost to Core income 25.0% 29.9% 24.3% 26.3% Cost of Risk 50bps 59bps 45bps 63bps Tangible Equity €578mn €462mn €578mn €462mn ROTE 26.8% 34.3% 28.1% 37.0% Loans/Deposits 79.2% 70.8% 79.2% 70.8% LCR 263% 2
Slide 5: The loan book grew 48% YoY
The loan book grew 48% YoY Loan Book Trajectory Gross Loans Evolution €mn €mn Corporate Retail 3,307 3,062 2,793 802 2,458 759 2,236 701 667 570 2,303 2,505 2,092 1,666 1,791 9M 2023 FY 2023 1Q 2024 1H 2024 9M 2024 2 2 2 24 Y-t-d Optima bank +€849mn (+34.5%) Market +€1.41bn (+1.2%) * * Private secto
Slide 6: Accelerated activation in Q3 driven by LCs
Accelerated activation in Q3 driven by LCs Consistently high loan disbursements 9M 2024 New Loan Disbursements €mn €mn 642 663 1,885 9M 2024 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 3Q 2024 The highest level of quarterly new loan 9M 2024 new loa
Slide 7: Strong deposit gathering in Q3 with deposits up by 32% YoY
Strong deposit gathering in Q3 with deposits up by 32% YoY Deposits grew 32% YoY Time vs Demand deposits €mn Corporate Retail 4,132 3,715 3,192 3,331 3,120 43% 49% 51% 55% 52% 2,757 34% 41% 47% 43% 49% 2,519 2,074 2,005 2,155 57% 51% 49% 45% 48% 1,045 1,187 1,175 1,196 1,374 9M 2023 FY 2023 1Q 2024
Slide 8: The Balance Sheet has expanded by 34% YoY
The Balance Sheet has expanded by 34% YoY 9M 2024 Balance Sheet Tangible Equity (€m) €mn €mn 9M 2024 FY 2023 Δ 9M 2023 Δ Cash 847 605 241 709 138 499 32.6 578 532 537 Securities 634 676 (41) 628 6 144 Net Loans 3,272 2,431 841 2,210 1,062 356 356 Assets 4,921 3,868 1,052 3.680 1,240 243 Deposits 4,1
Slide 9: AuM increased by €1,266 mn YoY
AuM increased by €1,266 mn YoY Total AuM at €4 bn Optima mutual funds €mn Market 0.69% 0.83% share €mn +47% 3,968 166 3,329 167 2,702 152 2,910 2,492 1,904 2 2 2 24 635 # of 467 476 9 11 funds 179 194 257 9M 2023 FY 2023 9M 2024 Mutual Funds Bonds Stocks Other #1 Mutual fund company in Greece in ter
Slide 10: Ample liquidity with zero ECB funding
Ample liquidity with zero ECB funding Strong Liquidity Metrics HQLAs 9M 2024 €mn LDR 71% 76% 83% 82% 79% Other securities 7% LCR NCFR Government bonds 20% 262.6% 263.0% 242.8% 225.9% €946mn 189.9% Cash & Cash at Central 130.4% 131.7% 124.0% 128.8% 129.1% Bank 73% 9M 2023 FY 2023 1Q 2024 1H 2024 9M 2
Slide 11: Fastest growing and most efficient bank in Greece
Fastest growing and most efficient bank in Greece Optima bank Market* ROTE 26.8% 17.2% EU peers @14.0%** NIM 4.28% 2.75% Cost to Core Income 25.0% 32.6% Depos Growth YoY 32% 1.5% Loan Growth YoY 48% 1.3% NPE ratio 0.9% 3.5% DTC/CET1 0% 58% * average 4 Greek systemic banks as of 3Q 2024 * * Factset,
Slide 12: 9M performance on track to meet FY 2024 guidance
9M performance on track to meet FY 2024 guidance Initial FY24 Guidance 1H 2024 update 9M 2024a Depos Growth c.€900mn — +€940mn Net Loans Growth c.€700mn — +€849mn YE 3M Euribor 3.0% — 3.3% Cost to Income <30% — 25.0% NPE ratio <1.0% — 0.9% Net Profit >€124mn >€134mn €108.2mn ROTE >20% >24% 26.8% Exe
Slide 13: Customer satisfaction remains top priority
Customer satisfaction remains top priority NPS (Net Promoter Score) Consistently high NPS 12M rolling 87.87 50 60 40 30 70 20 80 6.88 10 83.08 90 2022 2023 2024 5.26 0 100 • NPS measures the loyalty of customers to a company. Detractor • First developed in 2003 by Bain and Company Passive Promoter M
Slide 14: Committed to our strategy and the opportunity ahead
Committed x y… Strategy execution... ..and the opportunity ahead Focused on disciplined growth Further growth opportunities in Greece Capturing market opportunities in our current footprint Capturing market opportunities on our future footprint without jeopardizing the loan book quality Committed on
Slide 15: Market structure provides growth opportunities
… d h m m k Market structure provides growth opportunities Favourable macro dynamics Increase our market share Underleveraged market while retaining high returns for our Shift to new economic paradigm an opportunity shareholders for banks to grow Strong banking regulatory environment Executive Summa
Slide 16: Financial Analysis
Optima bank Financial Analysis
Slide 17: 9M 2024 excellent revenue growth of 40% YoY
9M 2024 excellent revenue growth of 40% YoY 9M 2024 NIM up by 8bps YoY 9M 2024 NII grew 43% YoY Net fees grew 30% YoY NIM 4.20% 4.28% NFM 0.96% 0.89% €mn €mn . . . . . . . . . . . 2 2 h 2 24 2 2 k h 2 24 Financial Analysis 17
Slide 18: NII continues growing driven by higher volumes
NII continues growing driven by higher volumes NII grew 6% QoQ NIM trajectory NIM 4.37% 4.20% €mn 4.58% 4.48% 4.44% 4.37% 4.20% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 2 2 24 h 2 24 Financial Analysis 18
Slide 19: 3Q 2024 NII +30% YoY
3Q 2024 NII +30% YoY NII Breakdown €mn 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Loans 38.4 43.8 47.1 51.4 54.5 +42% YoY Fixed income 4.9 6.2 6.4 6.1 6.0 Deposits -8.0 -9.4 -10.7 -13.3 -15.6 CB & Interbank 3.0 3.0 1.9 3.0 4.9 Other -0.2 -0.2 -0.2 -0.2 -0.2 Total 38.3 43.3 44.5 47.0 49.6 Financial Anal
Slide 20: 9M 2024 Commissions grew 30% YoY
9M 2024 Commissions grew 30% YoY Net fees breakdown Fee margin 1.01% €mn 9M 2023 FY 2023 9M 2024 0.99% 0.95% Loans 4.9 6.9 6.5 LGs 7.6 10.7 9.6 0.87% 0.86% Brokerage 5.2 7.2 6.2 Mutual Funds 1.8 2.7 2.7 Other 3.0 4.7 4.3 Net Fees 22.5 32.1 29.3 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Loan and mutual
Slide 21: Industry leading cost efficiency
Industry leading cost efficiency Operating expenses Cost to Core Income 481 500 512 535 549 28.0% -370bps y-t-d FTEs (#) 26.3% €mn 26.0% 18.5 24.7% 2.2 24.3% 14.4 14.1 14.5 12.5 1.7 5.6 1.9 2.0 2.1 5.2 4.9 4.5 3.0* 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 10.6 Positive Jaws 9M 2024 YoY 7.5 7.4 7.5 8.
Slide 22: Balance sheet structure 9M 2024 vs 9M 2023
Balance sheet structure 9M 2024 vs 9M 2023 Assets Liabilities & Equity €mn €mn 3,680 4,921 4,921 3,680 168 86 Other 134 112 Net Loans 3,272 Other liabilities Securities 4,132 Deposits Due from Banks 2,210 Due to banks Cash 3,120 Equity 634 628 116 121 115 588 731 588 120 328 9M 2023 9M 2024 9M 2024
Slide 23: Loan book structure and rates
Loan book structure and rates Loan Book rate Gross Loans Breakdown 9M 2024 €mn Mortgages Other/Consumer Retail 15% 5% BB - €802mn Revolving 28% BB - Term 7.05% 7.06% 52% 6.91% 6.95% 6.74% 6.49% 5.82% Corporate SMEs - Term 22% Large Pass-through rate at 84% Corporates - Term 37% €2,505mn SMEs - 1Q202
Slide 24: No dependence on any specific sectors
No dependence on any specific sectors Loans per sector Mortgages 3.7% Consumer 1.2% Corporate/BB loans constitute the Trade 11.9% overwhelming majority of the loans Manufacturing 10.4% with mortgages/consumer credit at Real estate 11.3% just 4.9% of the book Energy 15.1% Construction 7.9% Financial/
Slide 25: Deposit mix and rates
Deposit mix and rates Deposits per category Deposits Movement €mn €mn Corporate, Retail, Time Time 16% 36% €4,132mn 2 2 m m d m d m 2 24 Corporate, Demand 17% Deposits Rate Retail, 1.63% 1.68% Demand 31% 1.43% 1.30% 1.15% 0.86% 0.49% 0.15% 0.21% Deposit Beta 47% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 20
Slide 26: Well diversified securities book
Well diversified securities book Breakdown per classification Securities book mix €mn €mn €44mn FVTOCI 7% GGBs 13% €181mn FVTPL 28% €634mn AMOC 65% T-Bills 9% €410mn €634mn Other Sovereings Other 62% 16% Securities over assets 544 628 676 719 601 634 17% 17% 17% 18% 13% 13% 1H 2023 9M 2023 FY 2023 1
Slide 27: Asset Quality
Optima bank Asset Quality
Slide 28: NPE ratio well below domestic and European peers
NPE ratio well below domestic and European peers NPE ratio Cost of Risk 1.11% 1.03% 0.92% (bps) 63 20 72 33 45 €mn 0.49% 4.7 0.45% 3.6 3.4 9M 2023 FY 2023 1Q 2024 1H 2024 9M 2024 2.4 NPE Buckets 1.2 0 dpd; 16% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 >90dpd; 50% € 0mn 1-89dpd; 34% Asset Quality 28
Slide 29: Solid total NPE coverage
Solid total NPE coverage NPE total coverage well above 100% Texas Ratio 152% 166% 169% 6% 6% 5% 3% 118% 139% 139% 2% 34% 27% 30% 9M 2023 1H 2024 9M 2024 9M 2023 FY 2023 1Q 2024 1H 2024 9M 2024 Cash Coverage NPE collaterals/NPEs Asset Quality 29
Slide 30: Capital
Optima Capital
Slide 31: Continuous effort to maximize capital productivity
Continuous effort to maximize capital productivity CAD requirement lowered to 13.10% FLB3 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
Slide 32: RWAs rise due to rapid increase of exposures
RWAs rise due to rapid increase of exposures RWA Density RWAs evolution €mn 76% 72% 71% 69% 64% 9M 2023 FY 2023 1Q 2024 1H 2024 9M 2024 2 2 d k 2 24 Capital 32
Slide 33: Sustainability
Optima bank Sustainability
Slide 34: Enhanced governance to ensure oversight of sustainability issues
Enhanced governance to ensure oversight of sustainability issues Board Level: • Risk Management Committee: Board of Directors oversees Climate related & ESG Risks • Audit Committee: reviews and leads the internal audit of the Climate Remuneration & Risk Management Audit Sustainability Related &ESG r
Slide 35: Articulation of a detailed sustainability strategy
Articulation of a detailed sustainability strategy b y y m … 1 2 3 4 5 Integrate ESG Manage our Support the Uphold Facilitate into our impact across transition to prudent and Sustainable Operating the ESG sustainable transparent Investment Model spectrum business governance models Align with our Sta
Slide 36: Our Sustainability Performance
Our Sustainability Performance ✓ 12% of total loan portfolio regards RES financing Environment ✓ 5% reduction in Scope2 emissions ✓ 29% of energy consumption from Renewable Energy Sources ✓ 48% of women employees (total headcount) Driven for a ✓ 37% of women in managerial positions more ✓ 4,775 trai
Slide 37: Appendix
Optima Appendix
Slide 38: Income Statement
Income Statement in EURmn 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Net interest income 33.4 38.3 43.3 44.5 47.0 49.6 Net fee and commission income 7.5 8.2 9.6 9.8 9.3 10.1 Core Income 41.0 46.5 52.8 54.3 56.3 59.8 Other income 0.1 0.1 1.1 0.5 1.4 0.9 Trading Income 4.2 5.0 4.0 4.2 4.7 5.9 Tot
Slide 39: Income Statement
Income Statement in EURmn 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024 9M 2024 Net interest income 60.7 99.0 142.2 44.5 91.5 141.1 Net fee and commission income 14.3 22.5 32.1 9.8 19.1 29.3 Core Income 75.0 121.5 174.3 54.3 110.6 170.4 Other income 0.8 1.0 2.1 0.5 2.0 2.8 Trading Income 7.6 12.6 16.6 4.2
Slide 40: Balance Sheet
Balance Sheet 1H 2023 9M 2023 FY 2023 1Q 2024 1H 2024 9M 2024 Cash & Cash at C.B. 512 709 605 414 759 847 Securities 544 628 676 719 601 634 Net Loans 2,021 2,210 2,431 2,764 3,029 3,272 PP&E 11 11 11 11 10 10 Intangible Assets 10 11 11 11 11 10 RoU assets 19 18 20 22 18 19 DTA 7 6 8 8 7 8 Other Ass
Slide 41: Macro backdrop to remain supportive in the mid-term
Macro backdrop to remain supportive in the mid-term CPI Jan 2022 - September 2024 GDP remains on positive trajectory Average 2023: 3.5% 11.3% 12.0% 11.6% Nominal GDP 8.8% 9.1% 7.2% 4.6% 5.1% 3.5% 3.1% 2.9% 2.8% 2.7% 1.6% 2.9% 2.3% 2.3% Jun 22 Jun 23 Jun 24 Apr 22 Dec 22 Apr 23 Dec 23 Apr 24 Aug 22 A
Slide 42: Positive outlook for the Greek economy
Positive outlook for the Greek economy Greece returns to investment grade Greek Economic sentiment index 110.2 Latest credit ratings Outlook Last upgrade: 12/2023 BBB- Stable Upd: expected 11/2024 (6/2024) Last upgrade: 10/2023 BBB- positive Mar 19 May 19 Mar 20 May 20 Mar 21 May 21 Mar 22 May 22 No
Slide 43: 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 44: 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 45: Glossary 3/3
Glossary 3/3 Segment definitions Large corporate: Customers with turnover>€5 mn serviced by RMs in the HQs SMEs: Customers with turnover between €7 5-€5 mn serviced by RMs in the HQs BB (Business Banking): customers with turnover below €7 5mn, serviced by RMs in the branches Retail incorpora
Slide 46: 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 47: 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 48: Optima bank
Optima bank