Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q1 2021 Earnings Presentation
30 slides from Unicaja Banco's earnings presentation, May 5, 2021
Slide 1: Unicaja Banco 1Q 2021 Results Presentation
Unicaja Banco 1Q 2021 Results Presentation 5th May 2021 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 Merger Key highlights Unicaja Banco & Liberbank Asset quality, Results & business liquidity & solvency 2
Slide 4: Index: Merger
Index Merger Key highlights Unicaja Banco & Liberbank Asset quality, Results & business liquidity & solvency 3
Slide 5: Merger by absorption of Liberbank
Merger by absorption of Liberbank Main transaction terms (1) Unicaja Banco will issue c. 1.075m(2) new shares ordinary in exchange of Liberbank 100% share capital. The resulting structure is 59.5% and 40.5% of the share capital for Unicaja Banco & Liberbank respectively. c. €1.2bn pre-tax adjustment
Slide 6: Index: Results & business
Index Merger Key highlights Unicaja & Liberbank Asset quality, Results & business liquidity & solvency 5
Slide 7: Summary of 1Q 2021 results
Summary of 1Q 2021 results Retail customer funds grew 9.6% YoY with increases both on-balance sheet (9.8%) and off-balance sheet and insurance (8.9%). In the quarter, growth was 1.3%, with on-balance sheet growing by 1.4% and off-balance sheet and insurance by 0.8%. Business Performing loans rem
Slide 8: Index: Results & business
Index Merger Key highlights Unicaja & Liberbank Asset quality, Results & business liquidity & solvency 7
Slide 9: The Group's net profit amounts to €43 million
The Group's net profit amounts to € 43 million Profit & loss account (€ million) Var. Var. € million 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1Q'21/4Q'20 Mar'21 Mar'20 % % Net Interest Income 145 148 144 142 140 137 150 151 145 -3.9% 145 140 3.6% Net Fees 55 58 58 59 61 52 57 63 62 -1.6% 62 61 0
Slide 10: Retail customer funds grew +9.6% YoY and 1.3% QoQ
Retail customer funds grew +9.6% YoY and 1.3% QoQ Total retail customer funds (€ bn) On-balance sheet customer funds (€ bn) Retail off-BS funds & insurance Sight (private sector) Term (private sector) Retail on-BS funds Other (private sector) Public sector +9.6% 16.5% 54.2 54.9 +1.3% 50.1 52.2 52.8
Slide 11: Performing loans remain stable, with retail mortgages and corporates growing
Performing loans remain stable, with retail mortgages and corporates growing in the quarter Gross loans (€ Bn) Performing loans (€ Bn) Total gross loans (ex-reverse repos) 0.0% 0.0% 26.9 26.9 26.2 26.5 25.6 25.8 25.8 1.2 1.2 YtD% YtD% +0.2% 23.7 23.7 24.3 24.6 23.9 23.7 23.7 +0.1% +0.1% -1.0% 2.0 2.
Slide 12: Q1 new production improves in corporates and individuals
Q1 new production improves in corporates and individuals New lending evolution (€ million) 968 866 4 +38% QoQ 342 412 New loan production to 451 +38% individuals + corporates 54 303 136 450 261 323 3Q 20 4Q 20 1Q 21 Public sector Corporates Individuals New lending: Individuals New lending: Corporate
Slide 13: Net interest income in Q1 decreased due to the calendar effect
Net interest income in Q1 decreased due to the calendar effect and the lower contribution of fixed income, while customer margin remains stable Net interest margin Net interest income bridge 1Q 2021 Quarterly evolution € million 150 151 145 151.2 140 137 4.2 145.4 4.0 5.6 3.2 1.01% 0.93% 0.95% 0.94%
Slide 14: The conservative management of the debt portfolio continues
The conservative management of the debt portfolio continues (1) Breakdown , size and evolution of the debt portfolio (Fair Value Through OCI, Amortised Cost and SAREB) (1) 2.0% Size Duration 5.8% 0.7% € Bn Years Structural Sovereign Debt 17.6 3.7 portfolio 9.7% Other Public Debt Amortised TLTRO 2.7
Slide 15: Fee income improved 0.9% YoY
Fee income improved 0.9% YoY Net fees (€ million) Fees breakdown (€ million) 1Q 2020 1Q 2021 % +0.9% Fee income 67.3 67.8 0.8% 61.2 62.7 61.7 56.6 52.4 From contingent risk and 3.8 3.7 -1.5% commitments From payments and 32.4 35.5 9.7% collections From brokerage and non 29.6 27.0 -8.8% banking produ
Slide 16: Operating expenses continue to improve
Operating expenses continue to improve Operating expenses (€ million) Spanish branches evolution CAGR(*) -7.0% -7.1% 1,279 1,227 1,153 1,046 949 889 150.3 148.7 139.6 10.8 11.0 13.2 -6.1% 43.7 45.7 39.0 2016 2017 2018 2019 2020 1Q 21 95.7 92.0 87.4 Employees evolution (FTEs) 1Q 19 1Q 20 1Q 21 CAGR(*
Slide 17: Extraordinary provisions for Covid-19 of €25m booked in the quarter
Extraordinary provisions for Covid-19 of €25m have been booked in the quarter, reaching a total of €225m since 2020 Total impairments and other results (€ million) Cost of risk – Credit (%) 0.85% 284 228 0.52% 0.71% 200 0.36% 0.15% (2) 44 43 (1) 83 25 0.05% 0.02% 0.16% 25 0.14% 19 18 (1) 2017 2018 2
Slide 18: Index: Asset quality, liquidity & solvency
Index Merger Key highlights Unicaja & Liberbank Asset quality, Results & business liquidity & solvency 17
Slide 19: The evolution of non-performing loans reflects a conservative management
The evolution of non-performing loans reflects a conservative management Non performing loans evolution NPL balances (€ million) NPL ratio (%) (€-2.031m) CAGR(*) 9.8% 3,215 8.7% -18.1% 2,710 6.7% 1,926 4.8% 4.2% 4.2% 1,351 1,181 1,184 2016 2017 2018 2019 2020 1Q 21 2016 2017 2018 2019 2020 1Q 21 NPL
Slide 20: Downward trend in requests for mitigating measures
... with a downward trend in requests for mitigating measures… Corporates Individuals ICO lines Individuals – payments moratoria (Drawn down balances) % mortgages 95% 99% -32.8% 979 863 656 580 Approved limit Drawn down balance Approved Outstanding 19
Slide 21: Coverage improving by 12.5 p.p. YoY and 1.0 p.p. QoQ
…with coverage improving by 12.5 p.p. YoY and 1.0 p.p. QoQ Exposure, NPL and coverage NPL collateralization levels Gross exposure NPLs Type of NPLs (€ million) NPLs % Appraisal value 1 € million € million Unsecured 198 17% - Secured 986 83.3% 2,183 % NPL ratio % Coverage ratio ow/ Finish Building 82
Slide 22: Foreclosed assets coverage increased by 0.2 p.p.
In Q1 foreclosed assets coverage has increased by 0.2 p.p., with a stabilization in the volume of sales Foreclosed assets as at March 2021 (€ million) Released provisions over net book value (%) TOTAL FORECLOSED ASSETS Provisions 13.7 40.7 52.3 96.3 64.3 69.0 25.1 9.1 released (€M) Gross value 1,072
Slide 23: NPAs decreased by 8.4% in 12 months and 0.7% YtD
NPAs decreased by 8.4% in 12 months and 0.7% YtD Significant decrease of NPAs Non performing assets evolution (€ Bn) CAGR(1) 5.8 -17.2% 65.9% NPA coverage 4.6 2.6 -8.4% 3.6 1.9 1.7 2.5 2.5 2.3 2.3 1.1 1.1 -0.7% 3.2 1.1 1.1 2.7 2016 2017 2018 1.9 1.4 2019 1.3 1Q 20 1.2 2020 1.2 1Q 21 1.2% Foreclosed
Slide 24: Strong liquidity position
Strong liquidity position Loan to deposits ratio NSFR & LCR Ratio Requirements Unicaja Banco 1Q 2021 65.2% 64.2% NSFR 100% 143% LCR 100% 286% 2020 1Q 2021 Desglose de activos líquidos Wholesale funding maturities – Balances (€M) and costs Liquidity generation capacity (€ million) Covered bonds issua
Slide 25: Strong solvency position, improving CET1 FL ratio
Strong solvency position, improving CET1 FL ratio 1Q 2021 Regulatory solvency (1) CET1 fully loaded bridge 1Q 2021 -0.07% 15.14% 18.0% 0.19% 16.5% 15.02% CET 1 Total capital CET1 FL RWAs var Rest CET1 FL 4Q 20 1Q 21 1Q 2021 RWAs density 93% 59% €1,283m Total capital excess over OCR (1) 39% Mortgages
Slide 26: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 25
Slide 27: Appendix: Additional Information
Appendix Additional Information 26
Slide 28: Additional financial information: Group Balance Sheet
Additional financial information Unicaja Banco Group Balance Sheet Balance sheet €m 1Q 2021 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 1Q 2019 4Q 2018 Cash & equivalents 7,682 6,667 4,600 7,250 2,366 4,559 2,614 2,040 2,821 4,280 Assets held f or trading & at f air value through P&L 211
Slide 29: Additional financial information: P&L
Additional financial information P&L Unicaja Banco Group Profit & loss account €m 1Q 2021 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 1Q 2019 4Q 2018 Net Interest Income 145 578 427 277 140 579 437 293 145 601 Net Fees 62 233 170 114 61 231 172 114 55 219 Dividends 1 15 13 11 7 28 24 20
Slide 30: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 29