Optima Bank Sa · ATHEX:OPTIMA
Optima Bank Sa — FY2023 Earnings Presentation
51 slides from Optima Bank Sa's earnings presentation, Mar 6, 2024
Slide 1: Optima bank FY 2023 Results
Optima bank FY 2023 Results 6 March 2024
Slide 2: 2023 was a milestone year
2023 was a milestone year Record volumes Best bank in IPO & Profits Greece Loans and depos Awarded by the FT increased more than 45% respectively Share capital increase of €151mn via an IPO, oversubscribed by 3.7x Profits above €100mn for the first time Executive Summary 2
Slide 3: Strong growth led to a record 2023 performance
Strong growth led to a record 2023 performance Net Profit ROTE Loans Deposits Capital Fully Loaded FY 2023 adj: FY 2023: Total Capital of €107.4m 29% €2.5bn €3.2bn 17.4% (+152%) Loans Δ Deposits Δ FY 2023 rep.: €103m €0.8bn €1.0bn (+143%) (+45% YoY) (+47% YoY) First time distribution of profits to s
Slide 4: Optima bank was the outlier in 2023 posting strong volume growth in a stagnant market
Optima bank was the outlier in 2023 posting strong volume growth in a stagnant market Depos quarterly growth Quarterly credit growth Market Optima bank Market Optima bank 16.9% 12.3% 10.5% 10.0% 9.2% 9.4% 9.2% 2.3% 1.6% 1.6% 1.8% 0.5% 0.2% -0.3% -0.5% -2.6% 26% of the FY2023 credit growth and 17% of
Slide 5: Strong profitability, above the €100mn threshold for the first time
Strong profitability, above the €100mn threshold for the first time Net profit adj.* grew 152% YoY €mn Quarterly 18 26 30 34 profitability 107 74 43 44 18 FY 2022 1Q 2023 1H 2023 9M 2023 FY 2023 *Net profit adjusted for one off expenses of €5.5mn relating to stock awards, €0.5mn one off revenues rel
Slide 6: Strong 4Q 2023 Results
Strong 4Q 2023 Results €mn 4Q 2023 3Q 2023 2Q 2023 1Q 2023 % YoY % QoQ NII 43.3 38.3 33.4 27.3 102% 13% NFI 9.6 8.2 7.5 6.8 43% 17% Core income 52.8 46.5 41.0 34.1 88% 14% Opex adj.* (14.8) (12.2) (12.3) (11.8) 35% 21% PPI adj.* 43.1 39.3 33.0 25.8 89% 10% Impairments (1.2) (3.4) (1.2) (4.1) (59%) (
Slide 7: Another set of strong KPIs in 4Q 2023
Another set of strong KPIs in 4Q 2023 €mn 4Q 2023 3Q 2023 2Q2023 1Q 2023 NIM 4.58% 4.45% 4.45% 4.03% NFM 1.01% 0.95% 1.00% 1.00% Cost to Core 28.0% 26.3% 30.0% 34.7% Income TE (€mn) 499 318 288 262 FL CAD 17.4% 18.8% 12.8% 12.4% Executive Summary 7
Slide 8: FY 2023 EPS at 1.46, 152% higher YoY
FY 2023 EPS at 1.46, 152% higher YoY €mn FY 2023 FY 2022 % chg YoY FY 2021 NII 142.2 60.8 134% 27.0 NFI 32.1 22.2 44% 15.8 Core income 174.3 83.0 110% 42.8 Opex adj.* (51.1) (41.6) 23% (34.0) PPI adj.* 141.3 54.7 158% 14.1 Impairments (9.9) (6.7) 47% (4.1) Profit Before Tax 125.9 48.1 162% 10.1 Net
Slide 9: Best in class 2023 NIM at 4.39% and RoTE at 29%
Best in class 2023 NIM at 4.39% and RoTE at 29% FY 2023 FY 2022 FY 2021 NIM 4.39% 2.57% 2.05% NFM 0.99% 0.94% 1.20% Cost to Core 29.3% 50.1% 79.4% Income ROTE 29.0% 21.8% 6.8% TE (€mn) 499 243 148 FL CAD 17.4% 13.3% 13.9% Executive Summary 9
Slide 10: Optima bank vs the market
Optima bank vs the market Optima bank Market* ROTE 29% 14.6% EU peers @15.3%** NIM 4.39% 2.66% Cost to Core Income 29.3% 34.9% Depos Growth YoY 47% 3.2% Loan Growth YoY 45% 2.5% NPE ratio 0.45% 4.82% DTC/CET1 0% 60% * Factset, 4 Greek systemic banks * * Factset, average of the 29 largest EU banks Ex
Slide 11: Loan book grew 45% in 2023
Loan book grew 45% in 2023 Loan Book Trajectory Gross Loans Evolution €mn €mn YoY Δ €765mn (+45%) Market +2.5% Wholesale Retail 2,458 2,236 2,044 1,872 667 1,693 570 546 471 431 1,666 1,791 1,401 1,499 1,263 FY 2022 1Q 2023 1H 2023 9M 2023 FY2023 Balanced growth among business segments Executive Sum
Slide 12: Strong growth in customer funds
Strong growth in customer funds Deposits grew 47% YoY Core vs Time depos €mn YoY Δ €1,015mn (+47%) Market +3.2% 3,120 3,192 Wholesale Retail 2,778 2,378 2,177 34% 41% 47% 43% 49% 2,005 2,075 1,809 1,579 1,476 66% 59% 53% 57% 51% 1,045 1,187 799 968 701 FY 2022 1Q 2023 1H 2023 9M 2023 FY2023 FY 2022
Slide 13: AuM increased by 47% YoY
AuM increased by 47% YoY Assets Under Management €mn 3,300 332 476 2,239 199 303 2,492 1,736 FY 2022 FY2023 Stocks Bonds MF/Other AuM include assets from the brokerage business, PB and mutual funds subsidiary and incorporate market movement Executive Summary 13
Slide 14: Ample liquidity with zero ECB funding
Ample liquidity with zero ECB funding Strong Liquidity Metrics HQLAs 4Q 2023 Other Government securities; 1% LDR 77% 78% 73% 71% 76% Bonds; 44% LCR NSFR 243% €821mn 229% 226% Cash & Cash at 191% Central Bank; 55% 164% 931 821 130% 130% 132% 122% 124% 719 FY2022 1Q 2023 1H 2023 9M 2023 FY2023 IPO imp
Slide 15: Customer satisfaction remains world class
Customer satisfaction remains world class NPS (Net Promoter Score) Consistently high NPS 2021 2022 2023 • NPS measures the loyalty of customers to a company. • First developed in 2003 by Bain and Company Management Consultants • Score from -100 to +100 • According to Bain and Company: • 0 – 50 = goo
Slide 16: 2024 Outlook
Optima 2024 Outlook
Slide 17: Macro backdrop to remain supportive in the mid-term
Macro backdrop to remain supportive in the mid-term CPI Jan 2022 - Jan 2024 GDP remains on positive trajectory 11.3% 12.1% 12.0% Average 2023: 4.1% 8.8% 9.1% 7.2% 6.50% 6.3% 3.0% 2.7% 3.1% 2.10% 1.6% Jul 22 Jul 23 Jun 22 Jun 23 Apr 22 May 22 Nov 22 Jan 23 Apr 23 May 23 Nov 23 Jan 22 Dec 22 Feb 22 Ma
Slide 18: Positive outlook for the Greek economy
Positive outlook for the Greek economy Greece returns to investment grade Greek Economic sentiment index Credit ratings in 2023 Last upgrade on 1/12 BBB- May 19 Sep 19 Nov 19 May 20 Sep 20 Nov 20 May 21 Sep 21 Nov 21 May 22 Sep 22 Nov 22 May 23 Sep 23 Nov 23 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Jul 23
Slide 19: Our top 2024 priorities
Our top 2024 priorities 1 Remain committed to our successful business model 2 Sustain best in class ROTE on a European level 3 Increase our loan portfolio with high quality credits 4 Strengthen our deposit gathering effort; further expand our AuM 5 Enhance our customer value proposition Further inve
Slide 20: Key enablers to achieve our 2024 priorities
Key enablers to achieve our 2024 priorities Customer-centric mentality Human Capital High performance culture Superior Returns and Clean Balance Sheet with no legacy burdens Balance Sheet positive High liquidity and capital adequacy impact in the society Simplified and lean business model Operations
Slide 21: We anticipate another solid performance in 2024
We anticipate another solid performance in 2024 2024 Guidance YoY Depos Growth YoY c.€900mn +28% Net Loans Growth YoY c.€700mn +28% YE 3M Euribor assumption 3.0% Cost to Income <30% NPE ratio <1.0% Net Profit >€124mn +20% ROTE >20% Payout >30% Executive Summary 21
Slide 22: Financial Analysis
Optima bank Financial Analysis
Slide 23: Q4 Core Income grew 89% YoY on increased volumes and higher yields
Q4 Core Income grew 89% YoY on increased volumes and higher yields NII grew 102% YoY Net fees grew 43% YoY NIM 3.30% 4.58% NFM 1.12% 1.01% Financial Analysis 23
Slide 24: NII higher QoQ on expanding volumes and sustained high spreads
NII higher QoQ on expanding volumes and sustained high spreads NII grew 13% QoQ NIM at all time highs of 4.58% NIM 4.44% 4.58% 128bps improvement 4.58% 4.45% 4.44% 4.03% 3.30% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Financial Analysis 24
Slide 25: Q4 Loan interest income +123% YoY
Q4 Loan interest income +123% YoY NII Breakdown €mn 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Loans 19.6 26.5 32.8 38.3 43.8 Securities 2.7 3.2 4.0 4.9 6.2 Deposits -1.0 -2.7 -5.4 -8.0 -9.4 CB & Interbank 0.6 0.8 2.2 3.0 3.0 Other -0.5 -0.5 -0.2 -0.2 -0.2 Total 21.4 27.3 33.4 38.3 43.3 Financial Analy
Slide 26: Commissions grew 26% YoY
Commissions grew 26% YoY Net fees breakdown Fee margin at sector high levels €mn Wholesale Retail Brokerage 9.6 1.12% 8.2 7.5 2.0 6.7 6.8 1.7 1.00% 1.01% 1.8 1.00% 1.4 1.7 2.6 1.7 1.7 0.96% 1.2 1.4 0.95% 4.9 5.0 4.1 3.7 4.0 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY2022 4Q 2022 1Q 2023 2Q2023 3Q2023
Slide 27: Cost to Core Income remained below 30%
Cost to Core Income remained below 30% Normalized OPEX Cost to Core Income 445 452 469 481 500 FTEs 14.9 50.1% 11.8 12.3 12.2 2.2 11.3 1.6 1.8 1.7 1.5 4.0 34.7% 3.0 4.3 4.1 4.1 32.2% 29.9% 29.3% 8.7 6.8 6.0 6.3 6.4 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Staff Costs G&A Costs Depreciation FY 2022 1Q
Slide 28: Cost of Risk remains subdued
Cost of Risk remains subdued Loan Provisions CoR (bps) 28 93 58 60 48 9.9 €mn 8.7 6.7 5.4 4.1 FY 2022 1Q 2023 1H 2023 9M 2023 FY 2023 FY 2023 CoR well below the 65bps guidance Financial Analysis 28
Slide 29: Balance Sheet is 48% larger YoY
Balance Sheet is 48% larger YoY driven by 45% higher loan balances and 47% higher depos FY 2023 Balance Sheet Tangible Equity (€m) €mn €mn 9M 2023 FY 2023 Δ FY 2022 Δ 499 Cash 709 605 (104) 307 298 SCI Securities 637 677 40 488 190 Net Loans 2,210 2,431 221 1,674 756 356 Assets 3,680 3,868 188 2,607
Slide 30: Balance sheet structure FY 2023 vs FY 2022
Balance sheet structure FY 2023 vs FY 2022 Assets Liabilities & Equity €mn 2,608 3,868 3,868 2,608 85 155 Other 137 150 Other Liabilities 2,431 Net Loans Deposits Securities 3,192 Due to Banks Due from Banks Equity Cash 1,675 2,177 677 488 126 81 92 479 510 27 215 253 FY 2022 FY 2023 FY 2023 FY 2022
Slide 31: Loan book structure
Loan book structure Loan Book rates Gross Loans Breakdown FY 2023 Other/Consumer 6% Retail 288bps improvement Mortgages 15% Pass through rate at 88% €667mn BB Term 49% 7.04% BB Revolving 6.93% 31% 6.64% 5.97% 5.08% Wholesale 4.16% SMEs - Term 25% Large Corporates - Term 35% €1,791mn 9M 2022 FY 2022
Slide 32: Loan book structure
Loan book structure Loans per sector Mortgages 4.0% Consumer 0.3% Trade 13.7% • Corporate/BB loans constitute the overwhelming Manufacturing 11.1% majority of the loans with Real Estate 11.7% mortgages/consumer credit at just 4.3% of the book Energy 12.8% Construction 9.7% Financial/Insurance 8.6% F
Slide 33: €2.0bn of new loan disbursements in FY 2023
€2.0bn of new loan disbursements in FY 2023 Consistently high loan disbursements New Loan Disbursements €mn €mn 565 2,018 FY 2023 521 493 478 483 1,386 FY 2022 +46% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 We consistently generate about €0.5bn of new loans every quarter for the past 5 quarters Financ
Slide 34: Deposit mix
Deposit mix Deposits per category Deposits Rates 1.30% Wholesale 1.15% Wholesale Time 21% Core 17% 0.86% Deposit Beta 4Q23: 31% €3,192mn 0.49% Retail Core 0.21% 33% 0.15% Retail Time 29% 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Financial Analysis 34
Slide 35: Securities book €676mn
Securities book Breakdown per classification Breakdown per issuer FVTOCI €86mn 13% AMOC €251mn 37% GGBs 16% €676mn Other 44% FVTPL €338mn 50% €676mn T-Bills 34% Securities over assets Other 479 Sovereign 18% 478 544 628 676 6% 17% 17% 17% 17% FY 2022 1Q 2023 1H 2023 9M 2023 FY 2023 Other includes mo
Slide 36: Asset Quality
Optima bank Asset Quality
Slide 37: NPE ratio stable at 0.45%
NPE ratio stable at 0.45% FY 2023 NPE/NPL ratios Cost of Risk 0.93% 0.76% NPE NPL 0.45% 0.45% 0.64% 0.29% 0.19% 0.26% 0.21% FY 2022 FY 2023 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Asset Quality 37
Slide 38: …fully covered by provisions and collaterals
…fully covered by provisions and collaterals 2023 NPE LLR / NPEs Texas Ratio Total Coverage 148% 4% 4% 3% 3% 90% NPE Collaterals/NPEs 2% NPE LLR/NPEs 58% FY 2022 1Q 2023 1H 2023 9M 2023 FY 2023 Asset Quality 38
Slide 39: Capital
Optima Capital
Slide 40: Capital Ratios enhanced through the recent SCI
Capital Ratios enhanced through the recent SCI Capital Trajectory Comfortably above the 13.95% regulatory capital threshold Capital 40
Slide 41: RWA density flat YoY despite RWA expansion
RWA density flat YoY despite RWA expansion RWAs & RWA Density RWAs evolution €mn 1,832 2,688 70% 69% FY 2022 FY 2023 Capital 41
Slide 42: ESG
Optima bank ESG
Slide 43: Articulation of a detailed sustainability strategy
Articulation of a detailed sustainability strategy Sustainability Roadmap inaugurated in 2023 to meet 13 ECB expectations via 24 actions 4 Pillars: 24 Sub-actions Sustainability Strategy aims: • to integrate ESG into our Pillar 1: Business financial and operating 8 Actions Environment objectives • f
Slide 44: Appendix
Optima Appendix
Slide 45: Income Statement
Income Statement in EURmn 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Net interest income 21.4 27.3 33.4 38.3 43.3 Net fee and commission income 6.7 6.8 7.5 8.2 9.6 Core Income 28.1 34.1 41.0 46.5 52.8 Other income 0.1 0.7 0.1 0.1 0.3 Trading Income 5.8 3.4 4.2 5.0 4.8 Total Net Revenues 34.0 38.2 45.3
Slide 46: Income Statement
Income Statement in EURm FY 2022 1Q 2022 1H 2023 9M 2023 FY 2023 Net interest income 60.8 27.3 60.7 99.0 142.2 Net fee and commission income 22.2 6.8 14.3 22.5 32.1 Core Income 83.0 34.1 75.0 121.5 174.3 Other income 0.3 0.7 0.8 1.0 1.3 Trading Income 12.9 3.4 7.6 12.6 17.4 Total Net Revenues 96.3 3
Slide 47: Balance Sheet
Balance Sheet FY 2022 1Q 2023 1H 2023 9M 2023 FY 2023 Cash & Cash at C.B. 307 350 512 709 605 Securities 488 478 545 637 676 Net Loans 1,675 1,850 2,021 2,210 2,431 PP&E 12 11 11 11 11 Intangible Assets 10 11 10 11 11 RoU assets 19 19 19 18 20 DTA 6 7 7 6 8 Other Assets 90 76 85 79 106 Total Assets
Slide 48: IFRS9 stage analysis
IFRS9 stage analysis Loan Book IFRS 9 stages FY 2022 1Q 2023 1H 2023 9M 2023 FY 2023 LLRs Coverage YoY chg Stage 1 1,600.3 1,701.5 1,919.3 2,065.2 2,321.9 16.9 0.7% 45% Stage 2 82.6 82.5 114.2 159.8 119.5 3.6 3.3% 45% Stage 3 7.6 4.1 11.0 11.0 11.1 5.9 57.7% 46% POCI 2.8 - - - 5.9 0.0 0.7% 110% Appe
Slide 49: Disclaimer
Disclaimer This is a presentation of an exclusively informative nature, intended to provide general information about the Bank. Your participation in any way in an event at which the presentation is shown or your access to it in any other way constitutes an acknowledgment that you have read the term
Slide 50: Contact information
Contact information Kostantinos Vatousis, Head of Strategy & IR kvatousis@optimabank.gr George Doukas, IRO gdoukas@optimabank.gr 32 Aigialeias & Paradeisou str. Maroussi Athens 15125 Greece OPTIMAr.AT OPTIMA GA ISIN: GRS533003000 www.optimabank.gr
Slide 51: Optima bank
Optima bank