Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2013 Earnings Presentation
30 slides from Attijariwafa Bank Sa's earnings presentation, December 2013
Slide 1: Results Presentation as of 31 December 2013
RESULTS PRESENTATION As of 31 December 13 Attijariwafa bank – Results at 31 December 2013 1
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2013 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 31 December 2013 2
Slide 3: Macro-economic environment in 2013: Africa
Macro-economic environment in 2013 Africa Economic trends in Africa Real GDP growth Economic growth in Africa: 4.8% in 2013E vs. 6.6% in 2012 (excluding Libya, economic growth up from 4.2% to 4.5%) 2012 2013E 2014F North Africa: Africa 6.6% 4.8% 5.3% Slowdown in North African economic growth (3.9% i
Slide 4: Macro-economic environment in 2013: Morocco (1/2)
Macro-economic environment in 2013 X% Non agricultural GDP growth rate Morocco (1/2) Real GDP growth Economic growth GDP growth of 4.5% in 2013E which is one of the highest 4.9% 4.5% 2.5% 4.7% rates in the MENA region: 5.0% 4.5% - Weaker non agricultural activity (2.5% in 2013E vs 4.5% 3.9% in 2012)
Slide 5: Macro-economic environment in 2013: Morocco (2/2)
Macro- economic environment in 2013 Morocco (2/2) Trends in Balance of payments' main Balance of payments components (MAD billion) Improvement of Trade balance (goods and services) +9% +8% +7% +4% (G&S) deficit by MAD 2.1 billion (-1.7% compared to -1.7% -1.8% +25.2% -0.8% 2012) due to a simultaneou
Slide 6: Moroccan financial market (1/2)
X% CAGR nov13/dec12 Moroccan financial market (1/2) X% growth rate Financial market trends 2013 Yield curve trend between December 2011 and Rise of government bond yields December 2013 5.94% 5.62% Increase of government bond yields between 4.99% 12-31-2012 et 12-31-2013 (maturities above 4.91% 52w)
Slide 7: Moroccan financial market (2/2)
X% CAGR Moroccan financial market (2/2) X% Growth rate Financial market trends in 2013 Slight increase in stock market activity Stock market: Capitalization and volume in 2013 in terms of market capitalization MAD billion and volumes: Trading volume/ Moroccan All Shares Index (MASI) fell by Market c
Slide 8: Macro-economic environment in 2013: Tunisia - Senegal
Macro-economic environment in 2013 Tunisia - Senegal Tunisia: Real GDP growth Tunisia GDP growth of 2.7% in 2013E following a growth of 5.3% 3.6% in 2012 (+3.0% en 2014F) 3.6% 3.7% 6.0% inflation in 2013E vs. 5.6% in 2012 (5.4% in 3.1% 2.9% 2.7% 2014F) In this context, the Tunisian Central Bank incr
Slide 9: Moroccan banking sector
X% CAGR Moroccan banking sector X% +/- Deposits YoY growth of +3% compared to +2% between 2011 and 2012 Banking sector growth Slowdown in loans growth (+3% between 2012 and 2013 vs. as of December 31, 2013 +5% between 2011 and 2012 and +16% p.y. between 2006 and 2011): - Deposits-Loans deficit of MA
Slide 10: Focus on Basel 3 main impacts in Morocco: Capital Adequacy
Focus on Basel 3 main impacts in Morocco Capital Adequacy Minimum requirements Regulatory capital framework in Morocco (Basel 3) Main impacts on Attijariwafa bank Common shares issued by 5,5% the bank 1 Retained earning and Capital Minimum of 8% of CET1 instead of CET1 accumulated other requirements
Slide 11: Moroccan banking sector: loans growth
AWB market shares in Morocco X% CAGR Moroccan banking sector X% +/- +/- Focus on loans growth between 2008 and 2013 Retail loans(1) (MAD billion) Retail loans: YoY growth 24.73% 24.25% 24.68% 24.23% +12% +10% +5% 22.21% 22.98% 22.88% 23.38% 23.50% 196 206 179 14% 128 11% 12% 11% 11% 10% 10% 7% 5% De
Slide 12: Focus on NPL ratio in Morocco
Focus on NPL ratio in Morocco NPL ratio 19.62% 11.68% 8.61% 6.33% 6.00% 6.03% 6.21% 5.04% 4.94% 4.99% 4.22% 4.29% 4.59% 3.04% 3.55% 3.22% 3.27% 2.99% 2004 2007 2008 2009 2010 2011 2012 2013 Jan-14 Banking sector AWB Decrease of the NPL ratio in Morocco from 19.62% in 2004 to 4.99% in 2012 thanks to
Slide 13: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2013 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 31 December 2013 13
Slide 14: Attijariwafa bank Group key figures as of December 31, 2013
Attijariwafa bank Group key figures as of December 31, 2013 Total assets: MAD 385.6 billion NBI: MAD 17.9 billion 16,081 employees +4.7% +4.9% +792 employees +5.2% Total savings*: MAD 315.7 Gross operating income: MAD 3,197 branches billion 9.9billion +1.7% +6.0% +10.9% Deposits : +4.7% +315 branche
Slide 15: Stable Cost-income ratio and higher cost of risk
IFRS consolidated financial statements as of December 31, 2013 Stable Cost-income ratio and higher cost of risk Cost-Income ratio Cost of risk 45.07% 44.46% -61bps 0.71% +23 bps 0.48% Dec-12 Dec-13 Dec-12 Dec-13 Improvement of the cost-income ratio Increase of cost of risk to 0.71% (+23 bps) despite
Slide 16: Profitability ratios in line with best standards
IFRS consolidated financial statements as of December 31, 2013 RoE Profitability ratios in line with 17.6% -2.2 pts best standards 15.4% Shareholders’ equity up 7% YoY and RoA 2012 2013 stable : - Capital increase of MAD 685.2 million RoA through optional conversion of 2012 dividends into new shares
Slide 17: Superior Operating Performance
Superior Operating Performance NBI Growth Efficiency Ratios (Cost-Income ratio) 48.1% 45.3% 45.1% 44.2% 43.8% 44.5% 25% 19% 21% 40.8% 11% 8% 7% 5% 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 AWB has managed to sustain a strong NBI growth AWB managed to constrain its Cost-In
Slide 18: Conservative Approach to Capital Management
Conservative Approach to Capital Management All Data Based on Basel II RWA Growth (MADbillion) Core Tier 1 Ratio (%) 08-1H13 9.4 CAGR 9.1 9.0% AWB is fully compliant with the requirements of 7.8 7.9 its local regulator (Bank 7.3 7.3 Al Maghrib) which are 293.8 9.3% 288.0 amongst the most 276.7 27.7
Slide 19: Focus on leverage ratios and credit risk mitigation
Focus on leverage ratios and credit risk mitigation AWB leverage1 ratio vs. international benchmark 22,8 21,5 20,4 19,8 17,4 14,0 10,2 12,5 8,4 AWB Tier 1 capital is free of hybrid instruments AWB’s leverage ratio is much lower than international benchmark AWB Commerz Socgen Santander RBS BCP Llyods
Slide 20: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2013 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 31 December 2013 20
Slide 21: Contributions to consolidated NBI by activity
IFRS consolidated financial statements as of December 31, 2013 Structure of NBI as of December, 2013 Contributions to consolidated NBI by (8%) activity as of December 31, 2013 9% (12%) 12% (55%) 53% 26% (25%) Slight change in the NBI structure: (xx%) Structure December 2012 -1.3 pt for Banking in Mo
Slide 22: Growth of NBI by business lines
Growth of NBI by business lines x% Growth rate BMET International Retail Banking In MAD billion In MAD billion +3.9% +11.1% 9.5 9.8 4.3 4.8 NBI (In MAD billion) 2012 2013 2012 2013 17.0 17.9 +4.9% Specialised Financial Insurance 2012 2013 Companies In MAD billion In MAD billion +1.3% +17.2% 2.1 2.1
Slide 23: Contributions to consolidated NIGS by activity
IFRS consolidated financial statements as of December 31, 2013 Structure of NIGS as of December, 2013 Contributions to consolidated NIGS 11% (13%) by activity as of December 31, 2013 11% (10%) 57% (62%) 21% (15%) Slight change in the NIGS structure: (xx%) Structure December 2012 -5.8 pts for Banking
Slide 24: Growth of NIGS by business lines
Growth of NIGS by business lines x% Growth rate BMET in MAD million Insurance In MAD million 2,811 -16.5% -20.5% 2,348 -14.4%** +3.5%*** 577 458 NIGS (in MAD million) 2012 2013 2012 2013 4,501 4,141 -8.0% (-3.7%*) International Retail Banking Specialised Financial 2012 2013 In MAD million Companies
Slide 25: Growth of Cost of Risk by business lines
Growth of Cost of Risk by business lines x% Growth rate X% CoR (%) BMET In MAD million Specialised Financial 0.38% 0.86% Subsidiaries In MAD million 1,577 0.80% 0.93% +126% +13% 699 215 243 Cost of risk (in MAD million) 0.48% 0.71% Dec-12 Dec-13 Dec-12 Dec-13 1,867 1,222 +53% International Retail Ba
Slide 26: Main contributors to net banking income in 2013
Main contributors to net banking income in 2013 in MAD million Subsidiaries Contribution 2013 Contribution weight Growth Rate Attijariwafa bank 9,129 49.8% 2.6% Wafa Assurance 1,580 8.6% 17.2% Attijari bank Tunisie 1,335 7.3% 4.3% Wafasalaf 1,033 5.6% -5.1% CBAO (Senegal) 891 4.9% 15.9% SIB (Ivory C
Slide 27: Main contributors to net income group share in 2013
Main contributors to net income group share in 2013 in MAD million Subsidiaries Contribution 2013 Contribution weight Growth Rate Attijariwafa bank 2,272 54.9% -16.7% Wafa Assurance 458 11.1% -20.5% Attijari bank Tunisie 290 7.0% 41.4% Wafasalaf 160 3.9% -8.3% CBAO (Senegal) 123 3.0% 22.9% CDC (Cong
Slide 28: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2013 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 31 December 2013 28
Slide 29: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-09 to 10-03-14 MASI ATTIJARIWAFA BANK Base 100 190 Dec 09 2011 Share price as of 31 December 2010 2013: MAD 305 AWB : -14.0% 2012 2014 MASI : -12.9% AWB : +50.7% 165 MASI : +21.2% AWB : -10.6% AWB :+4.2% Share price as of
Slide 30: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2012 12/31/2013 Share price 313 305 Year High 377 345 Year Low 304 300 P/B (*) 2.04x 1.87x P/E (*) 14.00x 14.99x DY 2.88% 3.11%** Number of shares 201,243,086 203,527,226 Market capitalisation(**) 62,989 62,076 (**) in MAD million Attijariw