Eurobank S.A. · ATHEX:EUROB
Eurobank — Q1 2012 Earnings Presentation
25 slides from Eurobank's earnings presentation, May 31, 2012
Slide 1: First quarter 2012 Results
SW-EUB022-2007-03-19-CMD-V7 May 31, 2012 First quarter 2012 Results
Slide 2: 1Q 2012 results highlights
Page 2 1Q 2012 results highlights Pre-provision income at €275m in 1Q12 up 9%qoq, as non-core income reverts to normal levels. NII dropped 11%qoq on higher funding costs, significantly lower Euribor rates and further de-leveraging. On the positive side lending spreads in Greece widened by 16bps
Slide 3: Capital position post PSI
Page 3 Capital position post PSI Current position CAD 9.0% HFSF underwrote immediate capital Tier 1 8.9% needs (€ 4bn) bringing CAD to 9.0% Medium term EBA Equity Tier 1 7.9% Medium term capital needs and the capital instruments to address these are currently under discussion with BoG, HFSF, the
Slide 4: Organic capital enhancement plan
Page 4 Organic capital enhancement plan Signed agreement to sell Eurobank Tekfen to Burgan Bank of Kuwait; completion in 3Q12. Polbank transaction closed in April. Put option on remaining 13% stake exercised. LME in 1Q12 resulted in Core Tier I gain of €250m while other asset/liability actions
Slide 5: Liquidity
Page 5 Liquidity Total group deposits declined by €0.9bn in 1Q12 Greek deposits down by €1.4bn Int’l operations deposits increased by €0.5bn Group commercial gap improved by €400m. Eurosystem funding at €31bn. Eurosystem available liquidity buffers at €7.5bn including: existing buffers
Slide 6: Results review
a NS Page 6 iN mB Eurobank EFG Results review
Slide 7: Loan book de-risking continues – deposits in Int’l Operations resilient
Loan book de-risking continues – deposits Page 7 in Int’l Operations resilient Gross loans Deposits evolution 53.2 53.0 53.4 51.5 50.5 41.2 Int’l 10.6 10.0 10.3 Operations 10.6 10.5 Int’l 8.1 Operations 33.9 Greece: 32.5 31.6 8.4 8.5 9.0 Business 23.8 25.0 25.2 23.5 22.6 Greece 33.1 10.5 25.5 23.9 M
Slide 8: Pre-provision income improves in 1Q12 with non-core gains back to normal levels
Pre-provision income improves in 1Q12 with Page 8 non-core gains back to normal levels +9% 346 335 324 +75* 275 252 -57 +14 -10 ΔΝΙΙ ΔFees ΔOpEx ΔOther 1Q11 2Q11 3Q11 4Q11 1Q12 *Non core income turned positive in 1Q12 to € 45m from a loss of €30m in 4Q11 €m
Slide 9: NII hit by high funding costs and the significant reduction in Euribor rates
NII hit by high funding costs and the Page 9 significant reduction in Euribor rates NII evolution per segment NII evolution per region 503 515 513 508 Total NII 451 599 607 619 625 617 Loan margin 354 361 370 360 320 Greece Capital & bonds 51 50 43 53 56 Interest rate gapping -27 -33 -43 -53 -79 Int
Slide 10: Asset re-pricing continues, only partly offsetting increased funding cost
Asset re-pricing continues, only partly Page 10 offsetting increased funding cost Evolution of Greek spreads (%) Evolution of NIM (%) 1Q11 2Q11 3Q11 4Q11 1Q12 NIM (%) 1Q11 2Q11 3Q11 4Q11 1Q12 Core deposits 0.10 0.39 0.43 0.16 -0.33 Group 2.54 2.54 2.51 2.56 2.40 Time deposits & Greece 2.25 2.22 2.24
Slide 11: Commissions hit by weaker lending related fees
Commissions hit by weaker lending related Page 11 fees Commission income evolution per segment Commission income evolution per region 104 104 102 10 98 15 12 20 89 94 94 89 89 7 86 17 Adding back Govt’n 86 7 82 guarantees cost 82 11 8 7 7 72 7 72 6 11 9 8 Non-banking services 11 8 5 Insurance 62 56
Slide 12: Cost reduction continues unabated
Page 12 Cost reduction continues unabated OpEx down 20% cumulatively since 2008 Group OpEx down 5%qoq Cost Reduction 20% since the start of Group yoy OpEx the crisis 6.1% 3.0% 6.4% 4.5% 20.0% reduction International operations OpEx down 6% Greek yoy OpEx 3.4% 4.3% 8.3% 3.5% 19.5% reduction qoq
Slide 13: 90+ formation picks up on Greek economic contraction
Page 13 90+ formation picks up on Greek economic contraction 90dpd formation picks up in Greece 90dpd ratio 1Q11 2Q11 3Q11 4Q11 1Q12 815 Group 11.4% 12.5% 13.8% 15.3% 17.2% 774 Greece 11.3% 12.5% 14.0% 15.8% 18.0% 708 681 New Europe 12.0% 12.5% 12.7% 13.5% 14.3% 657 644 596 598 563 534 500 492 517 L
Slide 14: Int’l Operations asset quality: gross 90+ formation at reasonably low levels
Int’l Operations asset quality: gross 90+ Page 14 formation at reasonably low levels 19.0% 16.4% 12.9% 14.3% 12.4% 13.9% 14.6% 20.4% 10.5% 17.7% 16.0% 15.2% 14.6% 5.9% 13.1% 14.3% 13.4% 4.3% 3.6% 90+ over av. 11.6% 3.1% 9.5% loan book 5.3% 5.0% 3.6% 3.4% 3.2% 63 56 39 42 46 44 35 37 38 34 33 32 26 3
Slide 15: Int’l Operations performance: self funded & consistently profitable
Int’l Operations performance: self funded & Page 15 consistently profitable Total net loans Net profit +2.5 22 19 20 10.4 15 16 9.6 9.8 10.0 9.9 13 11 7.4 9 1 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 FY07 FY08 FY09 FY10 FY11 1Q12 € bn €m Total deposits International operations’ growth self-fun
Slide 16: Int’l Operations remain profitable
Page 16 Int’l Operations remain profitable Net Profit 12.6 11.5 10.7 10.4 8.1 7.9 8.7 8.8 8.7 7.5 7.3 5.7 5.1 5.4 5.7 5.9 5.7 3.3 3.3 4.2 2.0 2.8 2.6 1.7 1.6 1.8 -1.9 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q1
Slide 17: Appendices
iN mB Eurobank EFG Appendices
Slide 18: Financial Ratios
Page 18 Financial Ratios Financial Ratios 1Q12 1Q11 Net Interest Margin 2.40% 2.54% Cost-Income 51.6% 47.8% NPLs (% of loans) 13.7% 9.2% NPLs coverage 53.5% 50.0% Provision Charge (% of net loans) 3.07% 2.65% EBA core Tier 1 ratio 7.9%* 10.1% Tier Ι Ratio 8.9%* 11.9% Total Capital Adequacy 9.0%* 12.
Slide 19: Summary Figures
Page 19 Summary Figures Summary Figures Group (excl. POL) (€ m) 1Q11 2Q11 3Q11 4Q11 1Q12 Net Interest Income 503.4 515.1 513.2 507.5 450.8 Net Fees & Commissions 93.9 85.6 89.3 81.8 72.0 Non Core Income 45.2 19.8 31.3 -30.0 45.0 Total Operating Income 642.5 620.6 633.9 559.3 567.8 Operating Expenses
Slide 20: Key figures of International Operations
Page 20 Key figures of International Operations Romania Bulgaria Serbia Cyprus Turkey Ukraine NE Δyoy% Total Assets 4,248 3,396 1,737 3,282 2,035 731 15,423 -5.5% Balance Sheet Balance Total Loans (Gross) 3,149 2,829 1,068 1,353 1,486 645 10,531 +2.6% Sheet Total Deposits 1,816 2,078 796 2,920 1,086
Slide 21: Cumulative provisions of €6bn (annualized) since the crisis
Cumulative provisions of €6bn (annualized) Page 21 since the crisis Cumulative provisions & Cost of Risk 12.7% 1,282bps Value of Total NPL 90+ NPLs collaterals coverage 9.5% Consumer 6,004 Stock (€m) 6.3% 2,133 2,133 1,459 Provisions(€m) 1,495 1,495 >10% >80% 3.8% Coverage (%) 70% 70% 1.6% Mortgages
Slide 22: 1Q 2012 – Summary per Segment
Page 22 1Q 2012 – Summary per Segment Wealth Global & Capital Capital & Elimination Int’l (€ m) Retail Corporate Management Markets Other Center Operations Total Interest income 181.7 96.1 20.3 57.7 -28.0 0.0 123.0 450.8 Net fee & commission income 8.0 14.3 8.2 1.1 0.02 0.0 26.9 58.5 Net Insurance i
Slide 23: 1Q 2011 – Summary per Segment
Page 23 1Q 2011 – Summary per Segment Wealth Global & Capital Capital & Elimination Int’l (€ m) Retail Corporate Management Markets Other Center Operations Total Interest income 260.2 123.1 1.3 -6.6 -13.5 0.0 139.0 503.4 Net fee & commission income 8.6 15.7 10.6 10.3 -0.55 0.0 30.8 75.6 Net Insuranc
Slide 24: Contacts
Page 24 Contacts EFG Eurobank Ergasias, 20 Amalias Avenue, 105 57 Athens, Greece Fax: +30 210 3337 160 E-mail: investor_relations@eurobank.gr Internet: www.eurobank.gr Reuters: EFGr.AT Bloomberg: EUROB GA Investor Relations Dimitris Nikolos Tel: +30 210 3337688 E-mail: dnikolos@eurobank.gr Yanni
Slide 25: Disclaimer
Page 25 Disclaimer This communication has been prepared by and is the sole responsibility of EFG. It has not been reviewed, approved or endorsed by any third party retained by EFG. This communication is provided for information purposes only. The contents of this communication do not constitute or f