Eurobank S.A. · ATHEX:EUROB
Eurobank — EFG Eurobank Ergasias — 9M 2010 Earnings Presentation
34 slides from Eurobank's earnings presentation, Nov 29, 2010
Slide 1: Nine Month 2010 Results
SW-EUB022-2007-03-19-CMD-V7 November 29, 2010 Nine Month 2010 Results
Slide 2: Macro environment & results highlights
Page 2 Macro environment & results highlights 2
Slide 3: Macro environment – Greece
Page 3 Macro environment – Greece Greek economy is expected to return to growth in 2012 after recession in 2010 and 2011. Budget deficit made a record turnaround shrinking to an estimated €22bn from €36bn in 2009 - to drop further to €17bn or 7.4% of GDP in 2011. More structural reforms on the
Slide 4: Macro environment – New Europe
Page 4 Macro environment – New Europe New Europe exiting recession in 2010-11 but still below full potential. Speed of recovery in 2011 uneven among countries: Turkish economy to show the fastest growth (+5.0%) Poland to continue growing at 3.5%, having escaped recession during the crisis.
Slide 5: 9M 2010 results highlights
9M 2010 results highlights Page 5 9M10 net profit at €105m*, 3Q10 at €10m. Pre-provision income virtually flat yoy at €1,159m. Improved liquidity position, L/D ratio lowered to 127%. NII down 1.9% yoy at €1,700m and down 2.4% qoq at €548m. OpEx at €1,054m down 3.1%yoy on track to meet targ
Slide 6: Summary financials
Summary financials Page 6 Group, €m 9M10 9M09 YoY 3Q10 QoQ NII impacted by increased NII 1,700 1,733 -1.9% 548 -2.4% deposit costs, re-pricing continues Commissions* 365 364 +0.4% 112 -9.3% Non-core income 148 156 -5.4% 52 0.1% Total revenues 2,213 2,253 -1.8% 712 -3.4% OpEx 1,054 1,088 -3.1% 352 +1
Slide 7: Financial Review: Assets & Liabilities actively managed and under control
Page 7 Financial Review Assets & Liabilities actively managed and under control 7
Slide 8: Liquidity position at comfortable levels
Page 8 Liquidity position at comfortable levels ECB exposure stable around €20bn in the last 5 months. Strong contingent liquidity reserve of €4.5bn. No wholesale obligations remaining for 2010. Wholesale maturities for 2011 at €2.4bn easily covered by our liquidity plan. GGB portfolio at
Slide 9: Selective loan growth and de-risking – deposits stabilize; L/D ratio down to 127.5%
Selective loan growth and de-risking – Page 9 deposits stabilize; L/D ratio down to 127.5% Loans – selective de-risking L/D ratio declines 130.4% 58.6 57.6 125.5% 127.5% 56.7 119.3% 116.5% 9.6 Rest of New 9.4 9.3 Europe Poland & 5.8 5.9 Cyprus 4.9 9M09 FY09 1Q10 2Q10 3Q10 Greece: Deposits stabilize
Slide 10: Asset quality trends: Cost of risk off highs
Page 10 Asset quality trends: Cost of risk off highs 90dpd formation down by €100m qoq 90dpd ratio 787 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 713 693 Group 3.9% 4.9% 5.9% 6.4% 6.7% 7.3% 8.1% 9.0% Greece 4.2% 4.9% 5.8% 6.2% 6.4% 7.1% 8.1% 9.2% 594 574 New 3.0% 5.0% 6.3% 7.1% 7.5% 7.9% 8.1% 8.6% Euro
Slide 11: Adequate provision coverage
Page 11 Adequate provision coverage 90dpd provision coverage: 41.5% 5,209 NPL provision coverage: 52.2% Consumer Lending 1,388 4,136 90dpd NPLs Value of Total NPL NPL provisions provisions collaterals coverage recovery 1,388 coverage coverage rates Mortgages 875 Consumer >65% >65% ~5% ~70% 35% Lendi
Slide 12: Financial Review: Capital strength maintained
Page 12 Financial Review Capital strength maintained 12
Slide 13: Capital strength further improved
Page 13 Capital strength further improved Equity movement Capital Adequacy 2Q10 3Q10 Capital boosting (%) initiatives underway 5,806 Equity Tier I ratio 8.0% 8.1% (Core Tier 1 less goodwill) €3.9bn €3.9bn 793 Hybrids (excludes Government preference shares) 950 Govt. +64 prefs Core Tier I ratio 9.1%
Slide 14: Financial Review: Pre-provision income preserved
Page 14 Financial Review Pre-provision income preserved 14
Slide 15: 9M10 pre-provision income remains almost flat yoy
9M10 pre-provision income remains almost Page 15 flat yoy -1.5% 2,097 -31 2,066 -3.1% -0.5% 1,165 -6 1,159 1,088 -34 1,054 414 360 Q3 -5.4% 389 389 Q2 156 -8 148 363 411 Q1 9M09 9M10 9M09 9M10 9M09 9M10 9M09 9M10 Core revenues Non - core OpEx Pre-provision € m. revenues income 15
Slide 16: Funding costs continue to adversely impact NII – loan NII on record highs
Page 16 Funding costs continue to adversely impact NII – loan NII on record highs 621 608 608 590 590 599 592 560 566 561 544 548 Total NII 517 482 624 600 608 600 616 564 580 445 497 457 404 417 382 342 352 322 Loan margin Interest rate 11 13 17 10 3 7 4 5 gapping -13 -7 -18 -16 -9 -11 -15 Capital
Slide 17: Loan repricing continues, asset mix and higher funding costs impact NIM
Loan repricing continues, asset mix and Page 17 higher funding costs impact NIM Evolution of Greek spreads (%) Evolution of NIM (%) 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 NIM (%) 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Core deposits -0.24 -0.46 -0.21 -0.19 -0.17 -0.10 Greece 2.54 2.54 2.59 2.48 2.32 2.26 New Eur
Slide 18: Commission income stable yoy
Page 18 Commission income stable yoy Commission income evolution New Europe fees up 14%yoy Total commission income 364 365 130 133 129 119 120 124 113 112 121 New +14% 138 Europe 5 5 53 58 56 Lending Activities 42 44 52 42 48 Network & Other Activities 23 21 22 21 25 22 19 23 243 -7% Greece 227 Capi
Slide 19: Cost containment on track to meet -3%yoy target
Page 19 Cost containment on track to meet -3%yoy target 3Q10 OpEx drops by 3% yoy 9M10 OpEx drops by 3.1%yoy -3% 1,088 -3.1% 1,054 New 383 449 -0.8% 445 362 363 364 Europe 35 354 348 352 Depr. 33 36 35 31 30 30 640 -4.7% 609 Greece 140 9M09 9M10 Admin. 133 132 133 130 125 133 Cost containment vs. pr
Slide 20: Financial Review: New Europe’s profitability continues
Page 20 Financial Review New Europe’s profitability continues 20
Slide 21: New Europe performance: self funded growth; 3rd profitable quarter
New Europe performance: self funded Page 21 growth; 3rd profitable quarter Total net loans New Europe net profits +5.6 +0.9 52 14.4 13.8 14.9 14.7 46 13.8 14.0 36 9.1 4 7 8 2 -11 -10 -8 -15 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 €m FY07 FY08 1H09 9M09 FY09 1H10 9M10 € bn New Europe
Slide 22: New Europe pre-provision income on the rise; provisions decline
New Europe pre-provision income on the Page 22 rise; provisions decline Pre- provision income picks up Provisions decline -27% -17% 119 +7% 337 115 116 -11% 103 102 292 96 280 280 94 84 49 Pre-provision profit Provisions 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10 22
Slide 23: Asset quality in New Europe: gross 90+ formation reverting to more normal levels
Page 23 Asset quality in New Europe: gross 90+ formation reverting to more normal, almost pre-crisis levels 13.1% 14.3% 10.8% 11.6% 9.5% 6.6% 7.6% 12.9% 5.8% 3.3% 12.1% 90+ over av. 2.2% 2.7% 2.6% 2.6% 10.5% 1.2% 1.3% 9.0% 8.5% loan book 6.9% 2.4% 4.1% 1.8% 3.0% 3.2% 1.1% 129 105 71 80 63 56 60 64 5
Slide 24: New Europe profits at €19m in 9M10 vs. losses € 36m a year ago
New Europe profits at €19m in 9M10 vs. Page 24 losses € 36m a year ago 10.3 8.6 6.9 3.3 3.2 2.8 2.6 2.1 1.2 2.0 0.8 Net Profit -4.1 -4.1 -3.5 -4.0 -5.9 -7.3 -11.1 -10.1 -12.2 -14.4 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Poland Romania
Slide 25: Financial Review
Page 25 Financial Review Assets & Liabilities actively managed and under control Capital strength maintained Pre-provision income preserved New Europe’s profitability continues 25
Slide 26: Summary performance overview
Page 26 Summary performance overview Pre-provision profit Impairment charges 414 336 346 341 404 411 325 389 389 303 363 360 287 263 € m. 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 € m. 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Net profit Capital position CAD 11.3% 11.5% 12.7% 12.4% 12.2% 11.8% 11.9% 111 11.5% 11.
Slide 27: Appendices
a NS Page 27 Appendices
Slide 28: Financial Ratios
Page 28 Financial Ratios Financial Ratios 9M10 9M09 Net Interest Margin 2.66% 2.78% Cost-Income 47.6% 48.3% NPLs (% of loans) 7.2% 4.9% NPLs coverage 52% 60% Provision Charge (% of net loans) 2.45% 2.05% Tier Ι Ratio 10.7% 11.5% Total Capital Adequacy 11.9% 12.7% ROA after tax 0.2%* 0.5% ROE after t
Slide 29: Summary Figures
Summary Figures Page 29 Summary Figures (€ m) 9M 10 9M 09 Δ% New Europe Net Interest Income 1,700.0 1,732.9 -1.9% 571.9 Net fees & Commissions 307.7 305.9 0.6% 132.5 Insurance and non banking fees 57.5 57.9 -0.6% 5.9 Total Operating Income 2,213.4 2,253.0 -1.8% 736.5 Operating Expenses 1,054.1 1,088
Slide 30: Key figures of New Europe operations
Key figures of New Europe operations Page 30 Romania Bulgaria Serbia Cyprus Poland Turkey Ukraine NE Δyoy% Total Assets 5,235 3,546 1,840 2,243 5,537 2,472 820 21,710 +3.3% Balance Sheet Balance Total Loans 3,286 3,006 1,117 784 5,103 1,331 605 15,231 +6.8% Sheet Total Deposits 1,918 1,915 762 1,931
Slide 31: 9M 2010 – Summary per Segment
Page 31 9M 2010 – Summary per Segment Wealth Global & Capital Capital & Elimination Total (€ m) Retail Corporate Management Markets Other Center New Europe Interest income 824.9 347.1 2.2 17.8 -38.1 0.0 546.5 1,700.3 Net fee & commission income 43.9 45.0 35.7 48.3 2.45 0.0 132.5 307.7 Net Insurance
Slide 32: 9M 2009 – Summary per Segment
Page 32 9M 2009 – Summary per Segment Wealth Global & Capital Capital & Elimination Total (€ m) Retail Corporate Management Markets Other Center New Europe Interest income 825.3 307.1 -1.0 40.6 -3.2 0.0 564.1 1,732.9 Net fee & commission income 36.2 36.8 34.4 83.7 -1.45 0.0 116.3 305.9 Net Insurance
Slide 33: Contacts
Page 33 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 34: Disclaimer
Page 34 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
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