Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q3 2024 Earnings Presentation
39 slides from Unicaja Banco's earnings presentation, Oct 30, 2024
Slide 1: 3rd quarter 2024 Earnings presentation
3rd quarter 2024 Earnings presentation October 30th 2024
Slide 2: Index
Index 1 Key highlights 2 Business activity 3 Financial results 4 Asset quality 5 Solvency & liquidity 6 Final remarks 2
Slide 3: Key highlights
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Slide 4: Key highlights
Key highlights Business activity Profitability Asset quality Solvency and liquidity Strong reduction of NPAs Strong capital generation Improved momentum in Profitability keeps maintaining strong and SBB supports TBVPS total customer funds improving in the year coverage levels growth in the year Depo
Slide 5: Business activity
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Slide 6: Customer funds
Customer funds Customer deposits increase by 3.6% and off-balance sheet funds by 6.9% year on year Total customer funds Customer funds on balance € million Breakdown Million Euros 3Q23 2Q24 3Q24 QoQ YoY Customer funds on balance sheet 66,777 68,177 69,150 1.4% 3.6% 8% Public institutions 5,646 4,404
Slide 7: Lending
Lending Corporate lending shows a change in momentum in the quarter Performing loan book Performing loan book € million Breakdown QoQ Million Euros 3Q23 2Q24 3Q24 QoQ YoY (excl. pension1) 6% 10% Public sector 4,966 4,957 4,551 -8.2% -8.4% Private sector 44,567 43,264 42,393 -2.0% -4.9% -0.2% 21% Cor
Slide 8: Wealth management and insurance
Wealth management and insurance Positive trend in revenues coming from value added services and products Assets under management & insurance Assets under management (€bn) revenues(1)(€m) +10% 22.2 20.1 20.8 Vs. 9M22 +10% Vs. 9M22 9 9 10 257 250 Other 233 Funds 11 11 13 +15% Vs. 9M22 9M22 9M23 9M24 M
Slide 9: New lending
New lending All private sector lending books delivered improvement versus same quarter last year Total private sector lending (€m) Business lending (€m) 1,789 1,838 1,145 961 1,229 687 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 Mortgages (€m) Consumer lending (€m) 680 147 563 418 130 124 3Q23 2Q24 3Q24 3Q23 2Q24
Slide 10: Green bonds and sustainable growth
New Green SP €300m issuance in September 2024 Green bonds €1,100m of Green bonds outstanding, totaling €1,600m of Green bonds issued since 2022 €2,327m Eligible collateral (2,1x additional issuance capacity) Sustainable +17.1% YTD in ESG business categorized under our growth internal Taxonomy 29% of
Slide 11: Financial results
3 Financial results 11
Slide 12: Income statement
Income statement Net income grows by 58% in the year on the back of higher revenues and lower provisions P&L statement(1) Main quarterly variations QoQ YoY YtD Million euros 3Q23 2Q24 3Q24 9M23 9M24 (%) (%) (%) NII: Lower wholesale funding costs more than Net Interest Income 357 383 384 0.1% 7.4% 97
Slide 13: Net interest income
Net interest income Customer spread reduces with stable deposit cost and lower loan yields Average quarterly yields and costs(1) (%) Yearly evolution 4.12% 3.95% 4.90% 3.67% 3.68% 4.00% Euribor 12m -91bps 3.21% 3.59% 3.55% 3.50% 3.90% 3.35% 3.48% 3.09% Loan +39bps 3.00% 2.90% 2.50% yield 2.75% 2.91%
Slide 14: Net interest income evolution
Net interest income evolution Stable NII in the quarter, lower wholesale funding costs more than offset lower lending income Net interest income quarterly evolution (€m) 11 1 3 Retail business: Lower lending volumes and higher deposit balances 7 together with lower loan yield Alco:+2 Wh. 383 Funding
Slide 15: Fee income
Fee income Non-banking fees improve 1.8% in the year on the back of stronger customer activity Net fee income breakdown (€m) Fee income breakdown 3Q24 (%) QoQ YoY YoY Million Euros 3Q23 2Q24 3Q24 9M23 9M24 (%) (%) (%) 8% Payments and accounts 75 65 66 0.6% -12.6% 223 200 -10.3% Non-Banking fees 60 6
Slide 16: Other income
Other income Negatively impacted in the quarter by the banking tax adjustment Other income breakdown (€m) Million Euros 3Q23 2Q24 3Q24 QoQ YoY 9M23 9M24 YoY (%) Dividend income 6 8 5 -36.8% -15.9% 25 14 -42.2% Associates 15 34 15 -56.1% 1.1% 63 74 17.4% Trading income 7 3 4 31.3% -45.3% 15 8 -47.1%
Slide 17: Operating expenses
Operating expenses Cost to income keeps improving despite costs inflation in the year Operating expenses (€m) Cost to income (1) (%) 224 228 213 48% 22 22 24 44% 67 68 69 135 138 120 3Q23 2Q24 3Q24 9M23 9M24 Personnel expenses Administrative expenses D&A (1) Cost to income includes D&A expenses 17
Slide 18: Cost of risk and other provisions
Cost of risk and other provisions Keep improving supported by NPAs reduction of 30% over the last year Loan loss provisions and credit cost of risk (1) (€m) Total provisions evolution (€m) 37 34 279 31 29 27 79 191 7 112 87 88 97 9M23 9M24 3Q23 4Q23 1Q24 2Q24 3Q24 Other provisiones Loan loss provisi
Slide 19: Profitability
Profitability Profitability keeps improving towards our 2024 adjusted ROTE target of >10% Net income(€m) Return on tangible equity LTM(3)(%) 451 +58% Vs. 9M23 8% 272 285 156 6% 5% 9M21 9M22 9M23 9M24 7% (1) 4% 5% Banking margin (2) (€m) +18% 863 Vs. 9M23 9M22 9M23 9M24 732 ROTE Rote adjusted 517 434
Slide 20: Asset quality
4 Asset quality 20
Slide 21: Non-performing loans
Non-performing loans NPLs keep reducing at steady pace, 5% down in the quarter and 22% in the last twelve months Non-performing loans(€m) Non-performing loans breakdown (%) 1,737 -22% YoY 1,568 4% 1,460 1,417 1,348 -5% QoQ 40% 52% 3Q23 4Q23 1Q24 2Q24 3Q24 4% 3.4% 3.1% 3.0% 2.9% 2.8% Corporate Loans
Slide 22: Non-performing assets
Non-performing assets Foreclosed assets also keep reducing at 36% in the last twelve months Foreclosed assets quarterly evolution (€m) Gross non-performing assets evolution (%) 50 22% 66% 70% 70% Coverage (%) of initial stock sold YTD 3,334 2,502 2,379 1,253 1,737 273 NPLs 1,030 1,417 1,348 Foreclos
Slide 23: Solvency & liquidity
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Slide 24: Solvency (I/II)
Solvency (I/II) Positive evolution with an increase of 31 basis points in the quarter and 69 basis points in the year CET1 fully loaded (1) quarterly evolution (%) Main positives in the quarter come 0.5% from organic generation and positive 0.4% valuation adjustments 0.3% 0.3% 15.1% 15.4% Main negat
Slide 25: Solvency (II/II)
Solvency (II/II) Very comfortable capital position with ample regulatory buffers Capital levels versus Capital structure - MREL (fully loaded) current requirements 28.0% 25.9% SREP requirement (Total) 12.75% 5.0% 5.3% 2.7% MREL(1) requirement 24.9% 2.6% 3.1% 2.0% 1.9% MREL ratio 1.8% (phased in) 28.
Slide 26: Liquidity
Liquidity Best in class liquidity metrics Liquid assets(€m) Main liquidity ratios Loan to 11,535 43,689 deposit 70% 32,154 Net Stable Funding Ratio 157% Liquidity Coverage Ratio 314% Net Liquid Assets Additional capacity to issue Total liquidity 26
Slide 27: Fixed income portfolio
Fixed income portfolio Slight increase in the portfolio in the quarter Fixed income portfolio evolution (€bn) Fixed income portfolio breakdown (%) 88% amort. cost 26.6 27.3 25.5 9% 12% 3Q23 2Q24 3Q24 2.6% 2.6% 2.5% 79% Yield evolution (1) 2.4Y 2.5Y 2.4Y Public debt Sareb Private debt Duration (1) En
Slide 28: Final remarks
6 Final remarks 28
Slide 29: Final remarks
Final remarks Profitability improvement allows for better shareholders remuneration Profit before tax (€m) Improved shareholder value Tangible book value per share (€/share) 653 +7% YtD 2.3 89 186 2.2 34 202 413 128 451 285 2023 3Q24 +14% +5% -32% Div. + Share buyback return(1) of ~13% PBT 9M23 Reve
Slide 30: 2024 Updated guidance
2024 Updated guidance 2024 2Q24 3Q24 Initial guidance Updated guidance Updated guidance Net interest income +2-3% c.+10% >10% Fee income -2-3% -c.5% -c.5% Costs +c.5% +c.5% +c.5% Cost of risk 30-35bps 30-35bps 25-30bps Low range RoTE @12.5% CET1 >9% >10% >10% 30
Slide 31: Appendix
Appendix 31
Slide 32: Wholesale funding
Wholesale funding Wholesale funding breakdown and maturities (1) Maturities breakdown (2) 6.8% 11,000 9.0% Instrument 2024 2025 2026 >2026 Total 5.8% 7.0% 9,000 3.9% 3.3% AT1 - - 500 - 500 5.0% 5,640 7,000 3.0% Tier 2 300 - - 600 900 5,000 1.0% Senior non-preferred - - 500 300 800 -1.0% Senior prefe
Slide 33: Lending portfolios
Lending portfolios ICO Loans evolution Corporates portfolio (performing) 2,489 4% 2,076 1,609 35% 1,145 1,041 61% 4Q21 4Q22 3Q23 2Q24 3Q24 Real Estate SMEs & SE Other corporates 33
Slide 34: Credit stages
Credit stages Credit breakdown by stages September 2024 (€m) Stage 1 Stage 2 Stage 3 Gross Balance 44,076 2,868 1,348 Provisions 160 158 575 Coverage level (%) 0.4% 5.5% 42.7% 34
Slide 35: Share and book value
Share and book value Share and liquidity(1,2): 2Q24 3Q24 after SBB3 # O/S shares (m) 2,655 2,571 Last price (€) 1.27 1.15 Max price (€) 1.35 1.37 Min price (€) 1.11 1.13 Avg. daily traded volume (#shares m) 8.89 4.55 Avg. daily traded volume (€ m) 11.06 5.59 Market Capitalization (€ m) 3,382 3,040 B
Slide 36: Income statement
Income statement Million euros 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 QoQ (%) YoY (%) Net Interest Income 267 297 295 321 357 380 390 383 384 0.1% 7.4% Dividends 3 3 0 18 6 0 0 8 5 -36.8% -15.9% Associates 15 23 14 34 15 29 25 34 15 -56.1% 1.1% Net fees 131 131 135 134 132 133 130 126 125 -0.3
Slide 37: Balance sheet
Balance sheet Million euros 30/09/2023 31/12/2023 31/03/2024 30/06/2024 30/09/2024 Cash on hand, Central Banks and Other demand deposits 6,846 8,040 10,375 8,388 6,777 Assets held for trading & Financial assets at fair value through P&L 204 918 601 913 1,192 Financial assets at fair value through ot
Slide 38: Important legal information
Imortant legal information 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
Slide 39: Many thanks
Many thanks 3Q24 Earnings presentation