Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q1 2020 Earnings Presentation
29 slides from Unicaja Banco's earnings presentation, May 4, 2020
Slide 1: Unicaja Banco 1Q 2020 Results Presentation
Unicaja Banco 1Q 2020 Results Presentation 4th May 2020 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 Key highlights Results & business Asset quality, liquidity & solvency 2
Slide 4: Key highlights
Index Key highlights Results & business Asset quality, liquidity & solvency 3
Slide 5: Summary of 1Q 2020 results
Summary of 1Q 2020 results Performing loans ex-repo grew +1.7% YtD boosted by public sector that grew +13.8% and private sector +0.8%. Business New loan production decreased compared to 1Q 2019 by -10%, affected by the lockdown resulting from the state of alarm. Until 13th March growth was +20.3
Slide 6: Results & business
Index Key highlights Results & business Asset quality, liquidity & solvency 5
Slide 7: The Group's net profit, without the effect of the Covid-19 provisions remains stable
The Group's net profit, without the effect of the Covid-19 provisions remains stable Profit & loss account (€ million) QoQ YoY € million 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Mar'20 Mar'19 % % Net Interest Income 152 151 149 149 145 148 144 142 140 -1.0% 140 145 -3.3% Net Fees 53 55 55 56 55
Slide 8: On-balance sheet customer funds grew 0.6% YTD, off-balance sheet funds decreased
On-balance sheet customer funds grew 0.6% YTD, while off- balance sheet customer funds decreased -7.3% due to the strong valuation impact (-5.4%) Total retail customer funds (€ bn) On-balance sheet customer funds (€ bn) Retail off-BS funds & insurance Sight (private sector) Public sector Retail on-B
Slide 9: Performing loans grew 1.7% YTD
Performing loans grew 1.7% YTD Gross loans (€ Bn) Performing loans (€ Bn) Total gross loans (ex-reverse repos) +1.5% +1.2% +1.7% 27.2 27.6 YTD% 25.9 26.5 26.5 25.8 26.2 1.4 1.3 -1.2% YOY% +0.8% -0.8% 24.1 24.3 24.5 25.0 24.6 24.1 24.3 +13.8% +25.5% 1.7 1.9 1.4 1.6 1.9 1.7 1.9 4Q 19 1Q 20 1Q 19 2Q 19
Slide 10: Granting activity decreased compared to the same quarter last year due to Covid-19 impact
Granting activity decreased compared to the same quarter last year due to Covid-19 impact New lending evolution (€ million) -10% 1,157 20% YOY 228 1,040 81 -10% YOY Until 13th 665 New loan production 536 7 620 March 348 393 310 339 1Q 19 4Q 19 1Q 20 Public sector Individuals Corporates New lending:
Slide 11: NII fell slightly due to the calendar effect, while customer spread stabilizes
NII fell slightly due to the calendar effect, while customer spread stabilizes. Front Book spread is affected by the weight of large corporates in new production Net interest margin Net interest income bridge 1Q 2020 Quarterly evolution € million 145 148 144 141.7 142 140 140.4 1.5 0.2 1.03% 1.05% 1
Slide 12: Conservative management of the debt portfolio
Conservative management of the debt portfolio (1) Breakdown , size and evolution of the debt portfolio (Fair Value Through OCI, Amortised Cost and SAREB) (1) €bn 3.5% 7.8% 2.0% 17.4 Sovereign Debt 16.0 17.0 Other Public Debt 12.6% Covered 2018 2019 1Q 2020 74.1% Financials Senior Other Size Duration
Slide 13: Fee income grew 10.6% YoY
Fee income grew 10.6% YoY Net fees (€ million) Fees breakdown (€ million) 1Q 2019 1Q 2020 % +10.6% Fee income 61.5 67.3 9.4% 59.2 61.2 58.3 58.0 55.3 From contingent risk and 2.3 3.8 61.9% commitments From payments and collections 34.4 32.4 -5.8% From non banking products 23.3 29.6 27.2% Other fees
Slide 14: Operating expenses continue to fall
Operating expenses continue to fall Operating expenses (€ million) Spanish branches evolution -19.4% 1,279 1,227 1,153 1,046 1,031 -4.4% 155,6 150,3 148,7 9,4 10,8 11,0 -1,0% 48.5 43.7 45.7 2016 2017 2018 2019 1Q 20 97.7 95.7 92.0 Average number of employees 1Q 18 1Q 19 1Q 20 -14.3% 7,331 6,959 6,85
Slide 15: Extraordinary provisions for Covid-19 of €25m have been booked
Extraordinary provisions for Covid-19 of €25m have been booked Total impairments and other results (€ million) Cost of risk – Credit (%) 0.48% 44 0.35% 23 25 -19.4% 16 0.15% 0.10% 19 0.05% (1) (2) 0.13% 0.02% 1Q18 1Q19 1Q20 2017 2018 1Q19 2019 1Q20 Covid-19 impairments Covid-19 - Loan impairments Im
Slide 16: Asset quality, liquidity & solvency
Index Key highlights Results & business Asset quality, liquidity & solvency 15
Slide 17: NPL ratio decreased 14bp QoQ to 4.6%
NPL ratio decreased 14bp QoQ to 4.6% Non performing loans evolution NPL balances (€ million) NPL ratio (%) (€-1,881M) (€-505M) -5.2% 3,215 9.8% 2,710 (€-785M) (€-499M) 8.7% (€-575M) 6.7% 6.3% 1,926 1,833 1,351 1,334 4.8% 4.6% 2016 2017 2018 1Q19 2019 1Q20 2016 2017 2018 1Q19 2019 1Q20 Entradas bruta
Slide 18: Improving NPL coverage and collateralization levels
… improving YtD NPLs coverage and collateralization levels… Exposure, NPL and coverage NPL collateralization levels Gross exposure NPLs Type of NPLs (million €) NPLs % Appraisal value 1 € million € million Unsecured 172 13% - Secured 1.161 87,0% 2.371 % NPL ratio % Coverage ratio ow/ Finish Building
Slide 19: Portfolio with low exposure to Covid-19 impacts
...in a portfolio with low exposure to Covid-19 impacts Loan Portfolio Corporates portfolio breakdown Public sector Without mortgage % over % weight collateral total loans Corporates Indivicuals Financial companies 253 4.8% 0.9% Repo’s and others Non financial companies 5,048 95.2% 18.3% 4% 7% Agric
Slide 20: Mitigating measures in place that will reduce impacts
with mitigating measures in place that will reduce impacts Individuals – payments moratoria Corporates ICO lines Mortgages Consumer loans ~ 8,000 ~ 7,000 ~ 2,000 Applications (*) Applications (*) Applications (*) 3.5% 0.7% ~ 600M€ Of retail mortgages Of ‘Consumer and Balances (*) portfolio Others’ p
Slide 21: Coverage increases in RE assets, with positive disposal results
Coverage that also increases in RE assets, that continue to deliver positive results from disposals Foreclosed assets as at March 2020 (€ million) Released provisions over net book value (%) Provisions 13,7 40,7 52,3 96,3 64,3 69,0 2,8 TOTAL FORECLOSED ASSETS released (€M) Gross Value 1,130 421 Net
Slide 22: NPA decreased 29% YTD, improving Texas ratio
NPA decresed 29% YTD and 0.3% QoQ, improving Texas ratio Significant decrease of NPAs Non performing assets evolution (€ Bn) 57% 5.8 59% 4.6 -21% NPA coverage 2.6 -22% -31% 3.6 3.5 1.9 1.7 1.6 2.5 2.5 -29% 1.1 1.1 3.2 2.7 -0.3% 1.9 1.8 1.4 1.3 2016 2017 2018 1Q19 2019 1Q20 1.8% Net NPA / total asset
Slide 23: Strong liquidity position
Strong liquidity position Loan to deposits ratio NSFR & LCR Ratio Requirements Unicaja Banco 1Q 2020 71.4% 72.2% NSFR 100% 143% LCR 100% 335% 2019 1Q 20 Liquid Assets Breakdown Wholesale funding maturities – Balances (€M) and costs Liquidity generation capacity (€ million) Covered bonds issuance cap
Slide 24: A solid capital position, similar to that of 4Q 2019
A solid capital position, similar to that of 4Q 2019 1Q 2020 Regulatory solvency proforma (1) CET1 fully loaded proforma bridge 1Q 2020 (1) -0.1% -0.1% 0.3% 16.8% -0.2% 14.1% 15.4% 14.0% 0.1% CET1 FL 1Q results 2019 Treasury valuation Rest CET1 FL CET 1 Total capital dividend stock adjustments incl.
Slide 25: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 24
Slide 26: Appendix: Additional Information
Appendix Additional Information 25
Slide 27: Additional financial information: Group Balance Sheet
Additional financial information Unicaja Banco Group Balance Sheet Balance sheet Million Euros 1Q 2020 4Q 2019 3Q 2019 2Q 2019 1Q 2019 4Q 2018 3Q 2018 2Q 2018 1Q 2018 4Q 2017 Cash & equivalents 2,366 4,559 2,614 2,040 2,821 4,280 2,766 3,060 2,999 3,806 Assets held for trading & at fair value throug
Slide 28: Additional financial information: P&L
Additional financial information P&L Unicaja Banco Group Profit & loss account €m 1Q 2020 FY 2019 9M 2019 1H 2019 1Q 2019 FY 2018 9M 2018 1H 2018 1Q 2018 FY 2017 Net Interest Income 140 579 437 293 145 601 452 303 152 583 Net Fees 61 231 172 114 55 219 163 108 53 220 Dividends 7 28 24 20 9 23 20 15
Slide 29: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 28