Optima Bank Sa · ATHEX:OPTIMA
Optima Bank Sa — 9M 2023 Earnings Presentation
38 slides from Optima Bank Sa's earnings presentation, Nov 13, 2023
Slide 1: Optima bank 9M 2023 Results
Optima bank 9M 2023 Results 13 November 2023
Slide 2: Key highlights in a nutshell
Key highlights in a nutshell Net Profit ROTE Loans Deposits Capital 9M 2023: 9M 2023: Fully Loaded Total Capital of €73.6m 24.9% €2.2b €3.1b (+175%) 18.8% 3Q 2023: Loans Δ Deposits Δ post the 3Q 2023: €29.7m 26.6% €0.8b €1.2b €151m (+196%) (+59% YoY) (+65 YoY) share capital increase Executive Summar
Slide 3: Clearly Defined Strategy focused on profitable growth
Clearly Defined Strategy focused on profitable growth Deposits Targeting affluent individuals & corporates Loans Targeting SMEs and Large Corporates Capital Strong capital position to support our growth Customer Value Superior service, simple & transparent processes; efficient branch footprint Propo
Slide 4: Our Track Record shows our Strategy works…
Our Track Record shows our Strategy works… Listing • #27 branches Growth + 2023 • €462mn TBV • ATHEX Listing Break Even • #27 branches • SCI 3.7x covered • €243mn TBV • €2.2bn loans 2022 • #25 branches • €1.7bn loans • € 3.1bn depos Deployment • €148mn TBV • • €2.2bn depos €60mn convertible 2021 • €
Slide 5: Net profit adj. +196% YoY
Net profit adj. +196% YoY Net profit adj.* 3Q 2022-3Q 2023 29.7 * 25.7 18.3* 16.1* 10.0 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 *Net profit adjusted for one off expenses of €2.1mn in Q3 relating to stock awards, €0.5mn one off revenues relating to real estate asset sale in 1Q 2023 and coupons to con
Slide 6: 3Q 2023 Headline Results
3Q 2023 Headline Results €mn 3Q 2023 2Q 2023 1Q 2023 3Q 2022 % YoY % QoQ NII 38.3 33.4 27.3 13.8 177% 14% NFI 8.2 7.5 6.8 6.5 26% 9% Core income 46.5 41.0 34.1 20.3 129% 13% Opex adj.* (12.3) (12.3) (11.8) (10.8) 14% 0% PPI adj.* 39.3 33.0 25.8 13.8 184% 19% Impairments (3.4) (1.2) (4.1) (1.5) 121%
Slide 7: Another set of strong KPIs in 3Q 2023
Another set of strong KPIs in 3Q 2023 €mn 3Q 2023 2Q 2023 1Q2023 3Q 2022 NIM 4.45% 4.45% 4.03% 2.55% NFM 0.95% 1.00% 1.00% 1.20% Cost to Core 26.3% 30.0% 34.7% 51.9% Income ROTE* 26.6% 26.4% 21.7% 17.1% 318 TE (€mn) 288 202 168 462*** FL CAD * * 18.8% 12.8% 12.4% 10.6% *on a recurring and like for l
Slide 8: 9M 2023 Headline Results
9M 2023 Headline Results €mn 9M 2023 9M 2022 % chg YoY FY 2022 NII 99.0 39.4 151% 60.8 NFI 22.5 15.5 45% 22.2 Core income 121.5 54.9 121% 96.2 Opex adj.* (36.4) (30.3) 20% 41.6 PPI adj.* 98.1 31.9 208% 54.7 Impairments (8.7) (3.8) 129% 6.7 Profit Before Tax 87.8 27.9 215% 48.1 Net Profit adj.* 73.6
Slide 9: 9M 2023 KPIs
9M 2023 KPIs 9M 2023 9M 2022 FY 2022 NIM 4.20% 2.43% 2.57% NFM 0.96% 0.96% 0.94% Cost to Core 29.9% 55.2% 50.1% Income ROTE* 24.9% 15.6% 18.1% 318 TE (€mn) 168 183 462*** FL CAD * * 18.8% 10.6% 13.3% *on a recurring and like for like basis * * including net profit, dividend accruals and in 3Q23, SCI
Slide 10: Loan book growth driven by corporate clients
Loan book growth driven by corporate clients Loan Book grew 59% YoY Gross Loans Evolution YoY Δ €826mn (+59%) Y-t-d Δ €543mn (+32%) 214 2,236 2,236 2,044 235 1,872 377 574 1,693 552 1,410 480 1,410 432 360 1,662 1,392 1,493 1,262 1,049 9M 2022 FY 2022 1Q 2023 1H 2023 9M 2023 Wholesale Retail Market
Slide 11: Customer funds keep rising
Customer funds keep rising Deposits grew 65% YoY Core vs Time depos 100% 90% YoY Δ €1,232mn (+65%) 80% 36% 34% 41% 47% 43% Y-t-d Δ €943mn (+43%) 70% 60% Wholesale Retail 50% 40% 3,120 30% 2,779 20% 10% 2,378 0% 2,177 9M 2022 FY 2022 1Q 2023 1H 2023 9M 2023 1,888 2,075 Core Time 1,809 1,579 Assets un
Slide 12: Ample liquidity metrics with zero ECB funding
..implying ample liquidity metrics with zero ECB funding LCR/NSFR above requirements HQLAs 3Q 2023 Securities 4% LDR 74% 77% 78% 73% 71% LCR NSFR Government 229% Bonds 226% 36% €931mn Cash & Cash at 191% Central Bank 60% 166% 164% 931 130% 130% 122% 124% 719 104% 498 454 3Q 2022 4Q 2022 1Q 2023 2Q 2
Slide 13: Capital Ratios well above requirements
Capital Ratios well above requirements FLB3 CET1 / Total Capital Ratio Capital Trajectory 2023 y-t-d 18.8% CET1 Total Capital Ratio 4.0% 7.9% 485bps 18.8% 13.95% TRCR -1.1% -5.3% 12.4% 13.3% 12.8% 13.3% 10.6% 10.0% Convertible bond 9.3% conversion 9M 2022 FY 2022 1Q 2023 1H 2023 9M 2023 Executive Su
Slide 14: The IPO was a milestone in Optima's short history
The IPO was a milestone in Optima’s short history Key highlights of the IPO Shareholders’ structure post-IPO First bank to get listed in ATHEX since 2006 Ireon 8.9% Canelo- Baynoun 9.8% Oversubscription by 3.7x 5.1x oversubscription excluding Institutional Investors 17.3% cornerstone investors
Slide 15: Optima vs the market
Optima vs the market Optima bank Market ROTE 24.9% 16% EU peers @13.6% NIM 4.2% 2.6% Cost to Core Income 29.9% 35.0% Depos Growth y-t-d 43% 1% Loan Growth y-t-d 32% -1% NPE ratio 0.49% 5.30% DTC/Equity 0% 59% Executive Summary 15
Slide 16: Customer satisfaction remains world class
Customer satisfaction remains world class NPS (Net Promoter Score) Consistently high NPS 2021 2022 2023 Executive Summary 16
Slide 17: Financial Analysis
Optima bank Financial Analysis
Slide 18: Core Income jumped in Q3 on scale benefits
Core Income jumped in Q3 on scale benefits NII grew 177% YoY Net fees grew 26% YoY NIM 2.55% 4.45% NFM 1.20% 0.95% 3.0 25.9 2.8 38.3 1.0 8.2 -7.3 0.7 6.5 13.8 Financial Analysis 18
Slide 19: NII higher QoQ on expanding volumes
NII higher QoQ on expanding volumes NII grew 14.5% QoQ NIM at all time highs of 4.45% NIM 4.45% 4.45% 190bps improvement 1.0 4.45% 4.45% 5.6 0.9 38.3 4.03% 33.4 -2.6 3.56% 2.55% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Financial Analysis 19
Slide 20: Loan interest income +207% YoY
Loan interest income +207% YoY NII Breakdown 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Loans 12.5 19.6 26.5 32.8 38.4 Securities 1.9 2.7 3.2 4.0 4.9 Deposits -0.7 -1.0 -2.7 -5.4 -8.0 Interbank 0.2 0.6 0.8 2.2 3.0 Other -0.2 -0.5 -0.5 -0.2 -0.2 Total 13.8 21.4 27.3 33.4 38.3 Financial Analysis 20
Slide 21: Commissions grew 26% YoY
Commissions grew 26% YoY Net fees breakdown Fee margin at industry high levels 8.2 7.5 6.5 6.7 6.8 1.7 1.20% 1.8 1.12% 1.1 1.4 1.7 1.00% 1.00% 1.6 0.95% 1.1 1.1 1.9 1.6 4.9 4.4 4.2 3.9 3.5 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Wholesale Retail Brokerage Fina
Slide 22: OPEX flat QoQ excluding one off expenses
OPEX flat QoQ excluding one off expenses Normalized OPEX flat QoQ Cost to Core Income 431 445 452 469 481 FTEs 51.9% 11.8 12.3 12.3 10.8 11.3 1.6 1.8 1.7 40.1% 1.5 1.5 34.7% 3.0 4.3 4.1 4.1 30.0% 4.0 26.3% 6.8 6.0 6.3 6.4 5.2 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Staff Costs G&A Costs Depreciation
Slide 23: Cost of Risk remains subdued
Cost of Risk remains subdued Minimal NPEs CoR trajectory bps 23 28 60 0.54% 0.49% 0.35% 0.31% 8.7 6.7 3.8 1H 2023 9M 2023 9M 2022 FY 2022 9M 2023 NPE NPL 9M CoR stood at 60bps, below the 65bps guidance Financial Analysis 23
Slide 24: Balance Sheet is 1.7x larger vs 9M 2022
Balance Sheet is 1.7x larger vs 9M 2022 9M 2023 Balance Sheet Tangible Equity (€m) 9M 2023 1H 2023 Δ 9M 2022 Δ 462 3Q 2023 post SCI Cash 709 512 197 288 421 318 3Q 2023 Securities 637 545 92 410 227 Net Loans 2,210 2,021 189 1,393 816 183 FY2022 Assets 3,680 3,209 471 2,201 1,479 148 FY2021 Deposits
Slide 25: Balance sheet structure
Balance sheet structure Assets 9M 2023 vs 1H 2023 Liabilities & Equity 3,209 3,680 3,680 3,209 112 125 87 132 Other Other Liabilities 2,210 Net Loans 2,021 3,120 Deposits Securities 2,779 Due to Banks Due from Banks 637 545 Equity Cash 121 93 120 45 588 419 328 298 1H23 9M23 9M23 1H23 Financial Anal
Slide 26: Loan book structure
Loan book structure Loan Book rates Gross Loans Breakdown 9M 2023 6.93% Other/Consumer; 7% Retail 277bps improvement 6.64% 5.97% Pass through Mortgages 15% 5.08% rate at 93% 4.16% €574mn BB Term; 51% BB Revolving; 27% 9M 2022 FY 2022 1Q 2023 1H 2023 9M 2023 Wholesale Loans per sector SMEs - Term; 22
Slide 27: Loan disbursements already above FY 2022 levels
Loan disbursements already above FY 2022 levels Loan disbursements per Q New Loan Disbursements 521 483 493 1,454 9M2023 478 +5% 305 1,386 FY2022 +65% 865 9M 2022 Q3 2022 Q4 2022 1Q 2023 Q2 2023 Q3 2023 Financial Analysis 27
Slide 28: Deposit mix
Deposit mix Deposits per category Deposits Rates Wholesale, Retail, Time; Time; 19% 1.15% 24% 0.86% Deposit Beta at 28% €3,120mn Wholesale, 0.49% Core; 15% 0.21% 0.15% Retail, Core; 3Q22 4Q22 1Q23 2Q23 3Q23 42% Financial Analysis 28
Slide 29: Securities book €628mn
Securities book Breakdown per classification Breakdown per issuer FVTOCI; €88mn 14% AMOC; €235mn 37% GGB; 22% €628mn FVTPL; €305mn 49% €628mn Other; 45% Securities over assets T-Bills; 27% 18% 18% Other Sovereigns; 399 479 17% 17% 6% 17% 478 544 628 Other includes mortgage securitization note of ~€3
Slide 30: Capital
Capital
Slide 31: Capital enhanced through the recent capital raise
Capital enhanced through the recent capital raise RWA density lower despite Balance Sheet expansion CAD at 18.80% vs 13.95% TRCR RWAs evolution y-t-d Total Capital Requirements Total Capital % 478 51 2,361 2022* 2023* Minimum total capital ratio 8.00% 8.00% Pillar 2 Requirement (P2R) 3.40% 2.45% 1,8
Slide 32: Appendix
Optima bank Appendix
Slide 33: Income Statement
Income Statement in EURmn 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Net interest income 13.8 21.4 27.3 33.4 38.3 Net fee and commission income 6.5 6.7 6.8 7.5 8.2 Core Income 20.3 28.1 34.1 41.0 46.5 Other income 0.2 0.1 0.7 0.1 0.1 Trading Income 3.9 5.8 3.4 4.2 5.0 Total Net Revenues 24.4 34.0 38.2
Slide 34: Income Statement
Income Statement in EURm 9M 2022 FY 2022 1Q 2023 1H 2023 9M 2023 Net interest income 39.4 60.8 27.3 60.7 99.0 Net fee and commission income 15.5 22.2 6.8 14.3 22.5 Core Income 54.9 83.0 34.1 75.0 121.5 Other income 0.2 0.3 0.7 0.8 1.0 Trading Income 7.1 12.9 3.4 7.6 12.6 Total Net Revenues 62.2 96.2
Slide 35: Balance Sheet
Balance Sheet 9M 2022 FY 2022 1Q 2023 1H 2023 9M 2023 Cash & Cash at banks 288 310 350 512 709 Securities 410 487 478 545 637 Net Loans 1,393 1,675 1,850 2,021 2,210 PP&E 12 12 11 11 11 Intangible Assets 9 10 11 10 11 RoU assets 20 19 19 19 18 DTA 4 6 7 7 6 Other Assets 66 88 76 85 79 Total Assets 2
Slide 36: 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 37: Contact information
Contact information Kostantinos Vatousis, Head of Strategy & IR kvatousis@optimabank.gr kvatousis@optimabank.gr George Doukas, IRO gdoukas@optimabank.gr oukas@optimabank.gr 32 Aigialeias & Paradeisou str. Maroussi Athens 15125 Greece OPTIMAr.AT OPTIMA GA ISIN: GRS533003000 www.optimabank.gr
Slide 38: Optima bank
Optima bank