Piraeus Bank S.A. · ATHEX:TPEIR
Piraeus Bank — 9M 2003 Earnings Presentation
16 slides from Piraeus Bank's earnings presentation, Oct 30, 2003
Slide 1: Piraeus Bank Group 9M 2003 Results Presentation
PIRAEUS BANK GROUP 9M 2003 Results Presentation October 30, 2003
Slide 2: Highlights of 9m 2003 performance
Highlights of 9m 2003 performance ¨Increase in net profit attributable to shareholders by 28.6% ¨Improvement of cost to income ratio to 61.5%, down from 69.3% in 9m 2002 ¨Further enhancement of net interest margin (NIM) by 15 basis points to 2.53% (y-o-y) ¨Rise of net commission income by 23.6% (y-o
Slide 3: Key figures and ratios
Key figures and ratios (€ mn) 30/09/03 30/09/02 2002 2001 Total assets 14,827 14,324 14,788 12,259 Gross Loans 10,086 8,399 9,071 6,445 Deposits, Repos & bonds issued (ETBA) 10,319 9,964 10,316 9,767 Total equity 1 1,261 1,371 1,335 683 Customer loans / Total assets (%) 65.6 56.4 59.2 50.9 Customer
Slide 4: Composition of consolidated Balance Sheet
Composition of consolidated Balance Sheet Assets Liabilities & Equity Sept. ‘03: € 14.8 bn 100 100 4.2% Cash & Central Bank 3.8% 16.4% Interbank 90 Interbank 90 80 80 70 65.6% 70 Net Loans 60 60 Deposits 69.6% & Repos (%) (%) 50 50 40 40 30 30 Bonds 20 15.6% 20 Equity 10 10 8.5% 10.8% Other 0 5.5% O
Slide 5: Evolution of total gross loans
Evolution of total gross loans +20.1% 11000 10,086 10000 9,712 9,274 9,071 (€ mn) 9000 8,399 8,163 7,998 8000 7000 6000 March '02 June '02 Sept. '02 Dec. '02 March '03 June '03 Sept. '03 4
Slide 6: Solid lending and asset quality
Solid lending and asset quality Loans by sector Loans 30.09.03: € 10.1 bn Manufacturing ¨ Strong position in SMEs 14.0% 18.4% Handicraft and consumer loans Trade 0.9% Shipping ¨ Focus on high margin 15.0% Construction segments 14.1% State firms ¨ Limited loan exposure to 1.4% cyclical business lendi
Slide 7: Strong presence in Commercial Banking
Strong presence in Commercial Banking u Individuals represent 29.0% of the loan portfolio (+24% y-o-y) ØTailor-made consumer and mortgage products, covering individual needs ØExistence of efficient and comprehensive credit control systems u Small Medium Enterprises represent 34.2% of the loan portfo
Slide 8: Snapshot of consolidated P&L
Snapshot of consolidated P&L (€ mn) 30/09/03 30/09/02 ∆% Net interest income 280.6 259.7 8.0 Fee and commission income 79.5 64.3 23.6 Dividend income 18.2 18.5 (1.4) Trading profits 41.1 17.2 138.8 Other income 10.0 12.8 (22.1) Total operating income 429.4 372.5 15.3 Employee costs (124.4) (123.5) 0
Slide 9: Remarkable & healthy growth of net revenues
Remarkable & healthy growth of net revenues 9m 2002 +15.3% 9m 2003 € 372.5 mn € 429.4 mn 100 90 80 70 65.3% Interest income 69.7% 60 (%) 50 40 30 18.5% Commission Income 20 17.3% 10 16.2% Other income 13.0% 0 Source: Consolidated financial statements Profitability arising mainly from interest and co
Slide 10: Steady Improvement of Net Interest Margin
Steady Improvement of Net Interest Margin 2.6% Enhancement of 2.4% NIM (on avg assets) to 2.53% in 9m ‘03 2.53% 2.46% from 2.38% in 9m 2.2% 2.41% 2.43% 2.38% 2.38% 2.33% ‘02 2.0% Q1 H1 9m 12m Q1 H1 9m '02 '02 '02 '02 '03 '03 '03 9
Slide 11: Enhancement of commercial banking commissions
Enhancement of commercial banking commissions 23.6% € 64.3 mn € 79.5 mn 100% 80% Commercial Banking (%) 67.8% 70.8% 60% Asset Management Investment Banking 40% 12.0% 8.3% 20% 20.3% 20.8% 0% 9m '02 9m '03 Net Commission income Commissions are mainly from commercial banking activities 10
Slide 12: Fruitful cost containment policy...
Fruitful cost containment policy... Total Operating Expenses € 369.2 mn 100 400 90 350 43.7 80 300 70 250 60 (€ mn) (€ mn) 200 50 102.7 360.8 90.3 91.0 83.5 90.3 90.5 150 325.5 40 76.7 30 100 20 50 10 0 0 2001 2002 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Piraeus Group ETBAbank Group Total o
Slide 13: … Cost containment
… Cost containment Staff expenses 140 120 0.7% The containement of staff expenses is partially due (€ mn) 100 80 to implementation of the Voluntary Retirment 60 123.5 124.4 Schemes. 40 20 0 9m '02 9m '03 Adm inistrative The increase in administrative expenses is related to expenses 100 the promotion
Slide 14: Downward trend in the efficiency ratio
Downward trend in the efficiency ratio 70% Improvement of cost to income 60% ratio to 61.5%, decreased from 69.3% 69.3% in 9m 2002 61.5% 50% with a target < 55% in the next few 40% 9m '02 9m '03 years 13
Slide 15: High asset quality
High asset quality Piraeus Bank Group has : ¨ NPLs ratio of 4.0% (Sept. ’03), while net NPLs ratio (after cumulative provisions) is only 0.45% of gross loans ¨ High coverage ratio (89% in Sept. ‘03) ¨ Expertise in dealing with “problem” loans. NPLs ratio decreased from 4.6% to 2.0% during the period
Slide 16: Communication
Communication Investor Relations Unit : - George Poulopoulos - George Marinopoulos - Chrysanthi Bermpati 20, Amalias Ave. & 5, Souri St. 105 57, Athens Tel. : (0030 ) 210 333 5198 - 5027 - 5062 Fax : (0030 ) 210 333 5079 Internet site www.piraeusbank.gr e-mail : investor_relations@piraeusbank.gr 15