Eurobank S.A. · ATHEX:EUROB
Eurobank — Q2 2013 Earnings Presentation
28 slides from Eurobank's earnings presentation, Aug 30, 2013
Slide 1: Second Quarter 2013 Results
SW-EUB022-2007-03-19-CMD-V7 30 August, 2013 Second Quarter 2013 Results
Slide 2: Recent developments
a ee Page 2 ye urobank] Recent developments
Slide 3: New Board of Directors and management team
Page 3 New Board of Directors and management team Board of Directors Chairman: George David Non-executive Recapitalization of the Greek Honorary Chairman George Gondicas Non-executive banking sector successfully completed in 2Q 2013. Eurobank Vice Chairman: Efstratios-Georgios Arapoglou Independen
Slide 4: Strategic objectives of the new management team
Page 4 Strategic objectives of the new management team Objectives: 1 Transform our business and operating model to focus on being our clients' primary banking relationship. 2 Restore the bank's profitability. 3 Integrate New Hellenic Post Bank and New Proton Bank. 4 Introduce private sector capi
Slide 5: Strategic transformation program
Page 5 Strategic transformation program Built around deposit and daily banking needs of clients (vs. lending) Client-relationship Establish new client segmentation model along client size and revenue potential business model Focus on profitable target clients in retail and corporate Launch c
Slide 6: Recent M&A activity
Page 6 Recent M&A activity Transaction highlights Key benefits Transformational acquisition, resulting in material increase in scale Eurobank agreed to acquire the entire share capital of NHPB (“good bank”) for a total consideration of €681m Significant funding benefits from matching liquidity
Slide 7: Substantial scope to improve profitability through synergies with low execution risk
Page 7 Substantial scope to improve profitability through synergies with low execution risk Annual Pre-tax Synergies 2015(1) (€m) Comments Lower deposit costs due to market consolidation and NHPB time deposit costs converging to Eurobank levels 44% NHPB interbank funding costs decreasing to Euro
Slide 8: Integration plan in place and strong integration track record
Page 8 Integration plan in place and strong integration track record Integration plan Timing Integration strategy for NHPB based on One Bank – Two Brands Branch network Two separate brands will be maintained, with the optimization of the branch 9 months networks and the integration of the product
Slide 9: Combined Group key metrics
Page 9 Combined Group key metrics (1) (1) (2) Enlarged Group Combined Total assets (€m) 67,386 13,583 1,178 82,147 Key figures Gross loans (€m) 46,315 7,667 1,328 55,310 Net loans (€m) 40,987 6,766 564 48,317 Deposits (€m) 30,185 10,518 964 41,667 Net loans / deposits (%) 135.8% 64.3% 58.5% 116.0% A
Slide 10: Results review
a ee Page 10 ye urobank] Results review
Slide 11: Eurobank 2Q 2013 Highlights
Page 11 Eurobank 2Q 2013 Highlights 1H13 net profit at €45m after €533m non-recurring earnings; 2Q13 losses at €244m before extraordinary items. NII gains 9% qoq to €301m; Greek NII up 15% qoq. Costs down 8.5% yoy; quarterly OpEx the lowest in 7 quarters. Quarterly core PPI at €120m vs. €93m
Slide 12: Capital evolution
Page 12 Capital evolution Capital (€m) 2,832 - +380 +176 +780 -701 -283 3,184 RWAs (€m) 36,228 -2,124 +5,434 39,538 1.1% 0.5% 1.1% 0.5% 0.5% 7.8% 8.1% -1.9% -0.8% 1Q13 RWA LME Eurobank NHPB & Impact from Recap 2Q13 IRB for NHPB 1 improvement Properties 2 Proton operations 3 expenses & proforma conso
Slide 13: New acquisitions add size and improve liquidity
Page 13 New acquisitions add size and improve liquidity Gross loans: Deposits: Ongoing de-risking of the loan book L/D ratio improves to 116% pro-forma for NHPB & NPB pro-forma for NHPB & NPB 50.0 49.0 Group L/D 48.6 48.2 47.8 47.4 ratio pro-forma Int’l for NHPB & Operations NPB 41.7 Greece: pro-for
Slide 14: New acquisitions improve liquidity
Page 14 New acquisitions improve liquidity Eurosystem funding (€bn) Post acquisitions liquidity improves by € 34.0 4.2bn. Group L/D ratio down to 116% from 136% on standalone basis ELA Eurosystem funding at €19.5bn currently from €34bn at peak on a 19.5 standalone basis The combined Group posi
Slide 15: NII evolution: Greek NII bottoms out
Page 15 NII evolution: Greek NII bottoms out NII evolution per segment Imminent NII normalization factors Deposit spreads: August spreads already 20 bps Total NII better than 1H13. Interest on €5.8bn EFSF bonds (80-100bps) running for the full period going forward. Eurosystem funding cost redu
Slide 16: Group NIM recovers driven mostly by improvement in Greece
Page 16 Group NIM recovers driven mostly by improvement in Greece Evolution of Greek spreads (%) Evolution of NIM 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 NIM (%) 2Q12 3Q12 4Q12 1Q13 2Q13 Core deposits 0.16 -0.33 -0.41 -0.51 -0.55 -0.51 -0.50 Group 2.11 2.06 1.77 1.67 1.83 Time deposits & -2.28 -2.57 -2.9
Slide 17: Resilient commissions aided by network activities and capital markets
Page 17 Resilient commissions aided by network activities and capital markets Commission income evolution per segment Commission income evolution per region 98 89 86 82 78 80 81 Adding back Govn’t 69 71 78 guarantees cost 65 62 69 71 61 65 67 62 61 Non‐banking services Greece Insurance Mutual Funds
Slide 18: Ongoing cost reduction
Page 18 Ongoing cost reduction Regional evolution of costs OpEx down 27% cumulatively since 2008 Vs. 2Q12 ‐8% Vs. Av.Q08 ‐27% 269 256 254 249 248 1,566 Int’l Operations POL Greece TUR 1,358 -365 -27% Quarterly evolution of costs Int’l Operations 993 Vs. -145 269 266 Depr 256 249 2Q12 -31% Admin -9%
Slide 19: Greek 90dpd formation on declining trend; provision charge stable
Page 19 Greek 90dpd formation on declining trend; provision charge stable 90dpd formation 90dpd ratio Greek formation down 29% qoq 874 2Q12 3Q12 4Q12 1Q13 2Q13 811 Group 19.6% 21.3% 22.8% 24.6% 26.4% 768 Greece 20.5% 22.5% 24.2% 26.3% 28.1% 710 Int’l Ops 16.0% 16.6% 17.2% 17.8% 19.2% 695 594 601 Loa
Slide 20: Int'l Operations L/D ratio at 95%
Page 20 Int’l Operations L/D ratio at 95% Loans-to-deposits ratio below 100% +1.0 +3.5 +14% +71% Δnet loans & Δdeposits FY07‐1H13 Net Loans Deposits € bn
Slide 21: Int'l Operations: Resilient revenues but bottom line affected by asset quality costs
Page 21 Int’l Operations: Resilient revenues but bottom line affected by asset quality costs Operating Income Operating expenses Provision charge Net Profit € m.
Slide 22: Appendices
a ee Page 22 ye urobank] Appendices
Slide 23: Summary Figures
Page 23 Summary Figures Summary Figures Group (€ m) 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Net Interest Income 482.9 426.4 373.4 358.3 302.8 276.7 301.0 Net Fees & Commissions 78.4 68.5 60.5 62.4 70.6 65.3 66.5 Non Core Income -34.9 41.5 50.0 -23.4 -35.4 0.6 -23.3 Total Operating Income 526.4 536.4 484.
Slide 24: Key figures of Int'l Operations – 1H13
Page 24 Key figures of Int’l Operations – 1H13 Romania Bulgaria Serbia Cyprus Ukraine LUX Int’l Δyoy%* Total Assets 3,888 3,186 1,646 2,998 741 1,109 13,328 -22.0% Balance Balance Total Loans (Gross) 2,825 2,686 1,026 1,349 601 479 8,966 -5.7% Sheet Sheet Total Deposits 1,788 2,167 835 2,566 321 815
Slide 25: 1H 2013 – Summary per Segment
Page 25 1H 2013 – Summary per Segment Global & Capital & Elimination International Retail Corporate Wealth Mngt Capital Total Other Center Operations (€ m) Markets Interest income 294.5 202.0 25.9 -94.9 -37.9 0.0 188.2 577.7 Net fee & commission income 12.9 28.2 12.4 -3.2 -0.70 0.0 46.7 96.2 Net Ins
Slide 26: 1H 2012 – Summary per Segment
Page 26 1H 2012 – Summary per Segment Global & Capital & Elimination International Retail Corporate Wealth Mngt Capital Total Other Center Operations (€ m) Markets Interest income 351.6 195.3 33.5 73.2 -61.2 0.0 207.3 799.8 Net fee & commission income 16.8 28.3 15.0 -4.2 -0.55 0.0 49.4 104.8 Net Ins
Slide 27: Contacts
Page 27 Contacts 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 Yannis Ch
Slide 28: Disclaimer
Page 28 Disclaimer This communication has been prepared by and is the sole responsibility of Eurobank. It has not been reviewed, approved or endorsed by any third party retained by Eurobank. This communication is provided for information purposes only. The contents of this communication do not const