Eurobank S.a. · ATHEX:EUROB
Eurobank — Q2 2014 Earnings Presentation
23 slides from Eurobank's earnings presentation, Aug 29, 2014
Slide 1: Second Quarter 2014 results
Second Quarter 2014 results 29 August 2014
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This presentation has been prepared by Eurobank. The material that follows is a presentation of general background information about Euroban
Slide 3: 2Q2014 results highlights and key financials
2Q2014 results1 Highlights Key financials 1 Continuing recovery of pre-provision income to €222.2m in €m 2Q2014 1Q2014 2Q2014, up by 14.4% q-o-q NII up by 2.2% q-o-q driven by improving funding cost Net interest income 375.3 367.2 Time deposit spreads down 30 basis points (bps), new Commission i
Slide 4: Capital position and recent developments
Capital position and recent developments CET1 ratio Recent developments 19 June 2014 Issuance of €500m senior unsecured bond 18.1% 17.7% 25bps 17.7% (40bps) (25bps) 4 year tenor 4.375% yield to maturity 25 June 2014 Disposal of 13.5% of Eurobank Properties Retained 20% stake 13.6m shares at
Slide 5: Pre-provision income and efficiency
Pre-provision income and efficiency Pre-provision income q-o-q analysis (€ m) Pre-provision income (€ m) 71.7% 833 62.6% 63.2% 57.9% Cost -to- 375 54.6% income 367 1Q2014 ratio 2Q2014 222 134.6% 222 194 194 67 178 65 70 International 45 29 64 151 380 69 56 95 155 61 131 Greece 110 95 (267)(268) 34 N
Slide 6: Asset quality
Asset quality 90dpd gross formation (€ m) Coverage ratio 780bps 51.1% 90dpd 24.5% 26.3% 27.7% 29.4% 30.9% 31.8% 48.7% 49.9% 50.3% 44.1% TT & Proton 43.4% acquisition 749 685 53 9 681 696 675 83 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 569 Coverage ratio Coverage ratio incl. TT & Proton 535 599 (43.9%) 76
Slide 7: Summary 2Q2014 performance
Summary 2Q2014 performance Balance sheet – key figures Income statement – key figures €m 2Q2014 1Q2014 €m 2Q2014 1Q2014 Gross customer loans 51,785 52,442 Net interest income 375.3 367.2 Provisions (8,428) (8,151) Commission income 69.9 64.5 Net customer loans 43,357 44,292 Operating income 489.8 46
Slide 8: 2Q 2014 results review
Qarm 2Q 2014 results review
Slide 9: Loans and deposits
Loans and deposits Gross loans (€ bn) Deposits (€ bn) Change before (878) (455) (540) write-offs q-o-q (€ m) 135.6% 53.8 52.9 52.4 51.8 111.0% 109.4% 109.3% 103.4% Loans/Deposits 8.1 International 8.0 7.9 7.8 45.7 41.9 41.9 41.3 40.5 8.4 Greece 8.1 International 8.3 8.8 8.3 22.4 21.9 Business 21.8 2
Slide 10: New time deposits spreads and Eurosystem funding
New time deposits spreads and Eurosystem funding New time deposit spreads (bps) Eurosystem funding (€ bn) 34.0 (69.4%) (190) (191) (208) (215) (247) (240) (248) (234) (259) 19.0 (265) (262) (260) ECB (292) (264) Of which €2.0bn EFSF bonds (316) (322) 16.3 (305) (325) (356) (358) 10.7 10.4 (352) ELA
Slide 11: Net interest income
Net interest income NII breakdown (€ m) NII per region (€ m) 386 367 375 320 294 119 99 102 International 94 115 274 267 269 Greece 597 200 205 Loan margin 548 557 542 519 1 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 Capital & bonds 22 19 47 42 37 NII evolution q-o-q (€ m) (43) (32) (15) Volume (10) Market
Slide 12: Spreads & net interest margin
Spreads & net interest margin Lending spreads (Greece, bps) Deposit spreads (Greece, bps) 554 Savings (30) (29) and sight 520 (50) (49) (43) 498 Corporate (170) 503 (192) Total 487 (213) 472 (240) (238) 456 457 (271) (268) Total (289) 447 Time 432 (326) 427 423 (353) 418 Retail 1 1 2Q2013 3Q2013 4Q2
Slide 13: Commission income
Commission income Commission income breakdown (€ m) Commission income per region (€ m) Total fees 0.40% 0.35% 0.36% 0.34% 0.37% excluding Fees / Assets 76 83 85 80 86 Govt. guarantees expense 69 70 70 69 70 70 66 65 Rental & other 66 8 8 65 12 income 10 10 6 25 27 25 13 Insurance 7 8 25 23 11 9 Inte
Slide 14: Operating expenses
Operating expenses OpEx per region (€ m) OpEx breakdown (€ m)1 306 267 268 77 70 68 International 598 (10.7%) 229 Greece 196 200 52 534 51 Depreciation 4Q2013 1Q2014 2Q2014 218 Cost-to-income ratio (%) 191 Administrative 80.8 71.7 67.6 83.1 328 Group 291 Greece Staff 62.6 63.2 60.0 56.3 57.9 54.6 1H
Slide 15: Asset quality: 90dpd formation and loan loss provisions
Asset quality 90dpd gross formation (€ m) Loan loss provisions (€ m) 647 872 (56.2%) 814 67 90 84 767 749 479 714 49 685 455 701 53 681 9 57 81 419 417 88 72 83 51 International 569 66 535 76 75 805 382 730 718 557 696 675 83 633 International 613 599 422 366 383 493 353 461 Greece 299 Greece 1 4Q20
Slide 16: 90dpd gross formation per segment (Greece)
90dpd gross formation per segment (Greece) Mortgages (€ m) Consumer (€ m) 241 245 227234 221 210 214 205 190201 160 171 173 164 138 162 117 103 122 119 115 147 149143 78 78 100 92 79 76 94 135 75 56 100 84 82 33 82 6 72 66 54 55 43 (35) 4Q2008 2Q2009 4Q2009 2Q2010 4Q2010 2Q2011 4Q2011 2Q2012 4Q2012
Slide 17: Asset quality metrics
Asset quality metrics 90dpd & coverage per segment 90dpd & coverage per region Provision 1 90dpd 90dpd ratio 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 coverage Consumer €3.2 bn 44.7% 78.8% 90dpd ratio Mortgages €3.9 bn 21.2% 28.4% Greece 28.1% 29.1% 31.1% 32.7% 33.6% Small Business €3.7 bn 50.2% 43.7% Inte
Slide 18: Appendix: Summary financials
Appendix Summary financials
Slide 19: Quarterly financials
Quarterly financials Income Statement (€ m) 2Q2013 3Q20131 4Q20132 1Q2014 2Q2014 Net Interest Income 294.1 319.9 386.0 367.2 375.3 Commission income 65.5 69.2 70.0 64.5 69.9 Other Income (25.2) 15.2 27.7 29.2 44.6 Operating Income 334.5 404.2 483.7 460.9 489.8 Operating Expenses 239.7 252.8 305.5 26
Slide 20: Income statement highlights (Greece)
Income statement highlights (Greece) Operating income (€ m) Operating expenses (€ m) 354 229 339 327 196 200 275 180 166 200 1 1 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 Provision charge (€ m) Net income before non-recurring charges (€ m) 557 422 366 383 353 (192) (184)
Slide 21: Income statement highlights (International)
Income statement highlights (International) Operating income (€ m) Operating expenses (€ m) 145 74 77 73 70 68 134 136 134 129 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 Provision charge (€ m) Net income before non-recurring charges (€ m) 90 3 3 72 66 57 (2) 51 (4) (18) 2Q
Slide 22: International key figures – 2Q2014
International key figures – 2Q2014 (€m) Romania Bulgaria Serbia Cyprus Lux Sum Assets 3,460 2,979 1,510 3,313 987 12,249 Gross loans 2,629 2,597 956 1,172 418 7,772 Balance Sheet Balance Net loans 2,177 2,288 889 1,122 418 6,894 Sheet 90dpd Loans 820 599 158 107 2.2 1,686 Deposits 1,898 2,512 843 2,
Slide 23: Investor Relations contacts
Investor Relations contacts Dimitris Nikolos +30 210 3337 688 E-mail: dnikolos@eurobank.gr Yannis Chalaris +30 210 3337 954 E-mail: ychalaris@eurobank.gr Christos Stylios +30 210 3337 428 E-mail: cstylios@eurobank.gr Address: 20 Amalias Avenue, 105 57, Athens, Greece Group E-mail: investor_relations