Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q2 2020 Earnings Presentation
28 slides from Unicaja Banco's earnings presentation, Aug 3, 2020
Slide 1: Unicaja Banco 2Q 2020 Results Presentation
Unicaja Banco 2Q 2020 Results Presentation 3rd August 2020 0
Slide 2: Disclaimer
Disclaimer This presentation (the Presentation) has been prepared by Unicaja Banco, S.A. (the Company or Unicaja Banco) for informational use only. The recipient of this presentation has the obligation of undertaking its own analysis of the Company. The information provided herein is not to be relie
Slide 3: Index
Index Key highlights Results & business Asset quality, liquidity & solvency 2
Slide 4: Key highlights
Index Key highlights Results & business Asset quality, liquidity & solvency 3
Slide 5: Summary of 2Q 2020 results
Summary of 2Q 2020 results Performing loans ex-repo grew +2.7% YtD (1.1% excluding Q2 seasonal advances), boosted by public sector that grew +9.6% and corporates +8.4%. Business New loan production in individuals decreased compared to 1H 2019 by 38%, strongly affected by the lockdown resulting f
Slide 6: Results & business
Index Key highlights Results & business Asset quality, liquidity & solvency 5
Slide 7: Group's net profit, without Covid-19 effect, grew 14.8% YoY in 1H20
The Group's net profit, without the effect of the Covid-19 grew 14.8% YoY in 1H20 Profit & loss account (€ million) QoQ Var. € million 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Jun'20 Jun'19 % % Net Interest Income 151 149 149 145 148 144 142 140 137 -2.4% 277 293 -5.3% Net Fees 55 55 56 55 58 58
Slide 8: Retail customer funds grew +4.1% QoQ
Retail customer funds grew +4.1% QoQ , boosted by sight deposits (+6.5%) and off-balance sheet funds (+2.9%) Total retail customer funds (€ bn) On-balance sheet customer funds (€ bn) Retailoff-BS funds Sight (private sector) Term (private sector) Retail on-BS funds +2.5% Other (private sector) Publi
Slide 9: Performing loan book grew 2.7% YtD
Performing loan book grew 2.7% YtD Gross loans (€ Bn) Performing loans (€ Bn) Total gross loans (ex-reverse repos) +2.4% +2.7%* 27.2 27.8 YtD% 26.5 26.5 25.8 26.2 26.5 1.4 1.3 -2.3% YtD% 24.6 +2.2% 25.0 24.6 24.1 24.3 24.6 +2.2% 24.1 +9.6% +9.6% 1.7 1.9 1.6 1.9 1.7 1.9 1.9 4Q 19 2Q 20 2Q 19 3Q 19 4Q
Slide 10: Granting activity to individuals affected by Covid-19, stable in corporates
Granting activity to individuals affected by Covid-19 impact, while it remains stable in corporates New lending evolution (€ million) -25% 2,352 -2% -25% YoY 387 1,803 1,774 vs 97 New loan production 1,198 336 2H 2019 855 1,201 767 612 476 1H 19 2H 19 1H 20 Public sector Corporates Individuals New l
Slide 11: Net interest income decreased owing to lower NPL income and fee cancelation
Net interest income decreased owing to the lower income from NPLs and the cancelation of fees from delinquencies during the state of alarm Net interest margin Net interest income bridge 2Q 2020 Quarterly evolution € million 148 144 142 140 140.4 137 4.9 137.0 1.05% 1.02% 1.00% 1.00% 0.93% 2.5 1.0 2Q
Slide 12: Debt portfolio evolution shows higher liquidity available
The evolution of the debt portfolio shows the higher liquidity available (1) Breakdown , size and evolution of the debt portfolio (Fair Value Through OCI, Amortised Cost and SAREB) (1) €bn 6.9% 3.1% 1.7% 17.4 19.8 Sovereign Debt 17.0 11.1% Other Public Debt Covered 2019 1Q 2020 2Q 2020 Financials Se
Slide 13: Quarterly fee income impacted by Covid-19, stable in 1H20
Quarterly fee income evolution impacted by Covid-19, however it remains stable in 1H20 compared to 1H19 Net fees (€ million) Fees breakdown (€ million) 1H 2019 1H 2020 % -14.4% Fee income 125.9 122.7 -2.6% 59.2 61.2 58.3 58.0 From contingent risk and 52.4 4.9 6.4 29.7% commitments From payments and
Slide 14: Operating expenses fell significantly
Operating expenses fell significantly Operating expenses (€ million) Spanish branches evolution -19.6% 1,279 1,227 1,153 1,046 1,028 -6.9% 310.5 302.1 18.5 289.1 21.6 22.8 -4.3% 97.2 87.4 2016 2017 2018 2019 2Q 2020 82.3 194.8 193.1 184.0 Employees evolution (FTEs) 1H 18 1H 19 1H 20 -14.9% Amortizat
Slide 15: Extraordinary Covid-19 provisions of €78m booked in Q2
Extraordinary provisions for Covid-19 of €78m have been booked in Q2, reaching €103m YtD. Total impairments and other results (€ million) Cost of risk – Credit (%) 0.89% 153 0.72% 103 +9.2% 41 46 0.15% (1) 0.11% (2) 50 0.05% 0.02% 0.17% 1H 18 1H 19 1H 20 2017 2018 1H 19 2019 1H 20 Covid-19 Loan impa
Slide 16: Asset quality, liquidity & solvency
Index Key highlights Results & business Asset quality, liquidity & solvency 15
Slide 17: NPL ratio decreased 30bp YtD to 4.5%
NPL ratio decreased 30bp YtD to 4.5%, also decreasing QoQ Non performing loans evolution NPL balances (€ million) NPL ratio (%) (1,895M€) (-505M€) -5.3% 3,215 9.8% 2,710 (-785M€) (-411M€) 8.7% (-575M€) 6.7% 1,926 1,731 5.9% 1,351 4.8% 4.5% 1,320 2016 2017 2018 2Q 19 2019 2Q 20 2016 2017 2018 2Q 19 2
Slide 18: Moderate evolution of requests for mitigating measures
... with a moderate evolution of the requests for mitigating measures… Corporates Individuals – payments moratoria Consumer loans and ICO lines Mortgages others ~ 8,000 ~ 3,500 ~ 10,500 LEGAL (*) approved operations approved operations approved operations ~ 600 ~ 30 €m balances €m balances ~ 7,000 ~
Slide 19: No NPL ratio increase in any portfolio; better coverage and collateralization
… without increasing NPL ratio in any portfolio and improving coverage and collateralization levels Exposure, NPL and coverage NPL collateralization levels Gross exposure NPLs Type of NPLs (€ million) NPLs % Appraisal value1 € million € million Unsecured 170 13% - Secured 1,150 87.1% 2,399 % NPL rat
Slide 20: Foreclosed assets sale started to rebound in Q2
Foreclosed assets sale, after the lockdown in Q1, started to rebound during the latter part of Q2 Foreclosed assets as at June 2020 (€ million) Released provisions over net book value (%) Provisions 13,7 40,7 52,3 96,3 64,3 69,0 9,3 TOTAL FORECLOSED ASSETS released (€M) Gross Value 1,142 430 Net Val
Slide 21: NPA decreased 26% YoY, improving Texas ratio
NPA decreased 26% YoY and 0.3% QoQ, improving Texas ratio Significant decrease of NPAs Non performing assets evolution (€ Bn) -57% 5.8 62% 4.6 -21% NPA coverage 2.6 -22% -26% 3.6 3.3 1.9 1.7 2.5 2.5 1.6 1.1 1.1 3.2 2.7 -0.3% 1.9 1.7 2016 2017 2018 2Q 19 1.4 2019 1.3 2Q 20 1.5% Foreclosed assets Net
Slide 22: Strong liquidity position
Strong liquidity position Loan to deposits ratio NSFR & LCR Ratio Requirements Unicaja Banco 2Q 2020 71.4% 69.7% NSFR 100% 141% LCR 100% 346% 2019 2Q 20 Liquid Assets Breakdown Wholesale funding maturities – Balances (€M) and costs Liquidity generation capacity (€ million) Covered bonds issuance cap
Slide 23: A solid capital position that increases +32bp QoQ
A solid capital position that increases +32bp QoQ 2Q 2020 Regulatory solvency pro forma (1) CET1 fully loaded pro forma bridge 2Q 2020 (1) 14.4% 0.1% 0.1% 17.3% 15.8% 14.1% 0.1% CET 1 Total Capital CET1 FL Organic SME factor Intangibles CET1 FL 1Q 20 generation 2Q 20 2Q 2020 RWAs density 95% 60% €1,
Slide 24: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 23
Slide 25: Appendix: Additional Information
Appendix Additional Information 24
Slide 26: Additional financial information: Group Balance Sheet
Additional financial information Unicaja Banco Group Balance Sheet Balance sheet €m 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 1Q 2019 4Q 2018 3Q 2018 2Q 2018 1Q 2018 Cash & equivalents 7,250 2,366 4,559 2,614 2,040 2,821 4,280 2,766 3,060 2,999 Assets held for trading & at fair value through P&L 162 1
Slide 27: Additional financial information: P&L
Additional financial information P&L Unicaja Banco Group Profit & loss account €m 1H 2020 1Q 2020 2019 FY 9M 2019 1H 2019 1Q 2019 2018 FY 9M 2018 1S 2018 1Q 2018 2017 FY Net Interest Income 277 140 579 437 293 145 601 452 303 152 583 Net Fees 114 61 231 172 114 55 219 163 108 53 220 Dividends 11 7 2
Slide 28: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 27