Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q4 2020 Earnings Presentation
34 slides from Unicaja Banco's earnings presentation, Feb 2, 2021
Slide 1: Unicaja Banco 4Q 2020 Results Presentation
Unicaja Banco 4Q 2020 Results Presentation 2nd February 2021 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 Merger Key highlights Unicaja Banco & Liberbank Asset quality, Results & business liquidity & solvency 2
Slide 4: Merger Unicaja Banco & Liberbank
Index Merger Key highlights Unicaja Banco & Liberbank Asset quality, Results & business liquidity & solvency 3
Slide 5: Transaction summary
Transaction summary Main transaction terms Merger by absorption of Liberbank into Unicaja Banco Unicaja Banco will issue c. 1,075m(1) new shares in exchange for Liberbank 100% share capital for an agreed exchange ratio 0.361x Unicaja Banco shares for each share of Liberbank. Resulting structure is 5
Slide 6: Excess capital of the combined entity deployed to improve profitability
The excess capital of the combined entity is deployed to significantly improve profitability going forward. Transaction adjustments: ~ 1.2bn€ (pre-tax) Key implications Restructuring charges in order to generate cost synergies of €159m, equivalent to Liberbank’s c.42% LTM cost base. Cost savings a
Slide 7: Transaction implies c. €150m of capital synergies
The transaction implies c. € 150m (c. 40bps) of capital synergies as threshold deductions on a standalone basis are not deducted in the combined entity Combined CET1 fully loaded: 0.4% 15.1% Including impact from 15.0% 14.7% partial IRB 14.4% implementation(1) >13.0% >12.5% UNI LBK Combined Entity B
Slide 8: Integration experience and levers make us confident on synergies calendar
The experience in previous integrations, the levers already identified and the sharing of best practices, make us confident that we will achieve the synergies calendar Synergies calendar (incl. Unicaja Banco standalone plan(1)) Fast and low execution risk from measures already agreed: € million • c.
Slide 9: Excess capital allocated to improve EPS going forward
Excess capital allocated to improve significantly EPS going forward 2023 Consensus implicit ROTE (1) c. 6% Cost synergies low execution risk: Part of the measures to be implemented have already been agreed Revenue synergies: Not considered in the projections, even though we think there are sizab
Slide 10: Results & business
Index Merger Key highlights Unicaja & Liberbank Asset quality, Results & business liquidity & solvency 9
Slide 11: Summary of 4Q 2020 results
Summary of 4Q 2020 results Retail customer funds grew +6.5% YoY and +2.6% QoQ, growing QoQ both in balance-sheet (+2.6%) as well as in off-balance- sheet (+2.6%). Business Performing loans grew +0.8% QoQ, reducing the decrease in the year to -0,2%. Public administrations grew by 18.9% YoY and co
Slide 12: Results & business
Index Merger Key highlights Unicaja & Liberbank Asset quality, Results & business liquidity & solvency 11
Slide 13: Group's net profit without Covid-19 effect grew 26.6% YoY
The Group's net profit, without the effect of the Covid-19 grew 26.6% YoY Profit & loss account (€ million) QoQ Var. € million 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Dec'20 Dec'19 % % Net Interest Income 149 149 145 148 144 142 140 137 150 151 1.1% 578 579 -0.1% Net Fees 55 56 55 58 58 59
Slide 14: Retail customer funds grew +2.6% QoQ and +6.5% YoY
Retail customer funds grew +2.6% QoQ and +6.5% YoY Total retail customer funds (€ bn) On-balance sheet customer funds (€ bn) Retail off-BS funds & insurance Sight (private sector) Term (private sector) Retail on-BS funds Other (private sector) Public sector +6.5% 14.5% 52.2 52.8 54.2 2.6% 50.9 50.1
Slide 15: Performing loans increased +0.8% QoQ
Performing loans increased +0.8% QoQ, leading to a -0.2% decrease YoY. Public sector +18.9% YoY and corporates +5% YoY Gross loans (€ Bn) Performing loans (€ Bn) Total gross loans (ex-reverse repos) -0.2% +0.8% -0.8% 27.2 26.9 25.8 26.2 26.5 25.6 25.8 1.4 1.2 YoY% -12.6% 24.1 24.3 24.6 23.9 23.7 -1,
Slide 16: New lending improvements in corporates, individuals and public administrations
Granting activity affected by Covid-19 impact, showing new lending improvements in corporates, individuals and public administrations QoQ New lending evolution (€ million) 4,155 723 3,194 -21% YoY 493 New loan production to 2,052 individuals + corporates -21% 1,640 1,379 1,060 2019 2020 Public secto
Slide 17: Net interest income grew +1.1% QoQ
Net interest income grew +1.1% QoQ by improving the cost of both retail and wholesale funding, showing an improvement of customer margin for the second consecutive quarter Net interest margin Net interest income bridge 4Q 2020 Quarterly evolution € million 142 150 151 140 137 149.6 151.2 3.5 7.9 2.8
Slide 18: Conservative management of the debt portfolio continues
The conservative management of the debt portfolio continues (1) Breakdown , size and evolution of the debt portfolio (Fair Value Through OCI, Amortised Cost and SAREB) (1) 6.7% 2.3% Size Duration € Bn Years 1.0% Structural Sovereign Debt portfolio 16.9 4.3 9.9% Other Public Debt Amortised TLTRO 2.8
Slide 19: Fee income improved +10.7% QoQ
Fee income improved +10.7% QoQ Net fees (€ million) Fees breakdown (€ million) 2019 2020 % +5.9% +10.7% 62.7 Fee income 253.9 254.7 0.3% 59.2 61.2 56.6 52.4 From contingent risk and 11.3 11.8 4.9% commitments From payments and 141.3 136.7 -3.3% collections From brokerage and non 96.3 100.8 4.7% bank
Slide 20: Operating expenses continue to improve
Operating expenses continue to improve Operating expenses (€ million) Spanish branches evolution CAGR(*) -7.2% -9.3% -7.6% 1,279 1,227 1,153 1,046 949 619.2 606.6 37.1 571.9 42.7 49.9 -5.7% 191.3 175.2 155.3 2016 2017 2018 2019 2020 390.8 388.8 366.6 Employees evolution (FTEs) 2018 2019 2020 CAGR(*)
Slide 21: Extraordinary Covid-19 provisions of €34m booked in Q4
Extraordinary provisions for Covid-19 of €34m have been booked in Q4, reaching €200m in the whole year Total impairments and other results (€ million) Cost of risk – Credit (%) 0.85% 284 228 -63.4% 174 0.71% 200 0.15% (1) (2) 83 0.05% 0.02% 0.14% (1) 2018 2019 2020 2017 2018 2019 2020 Covid-19 Impai
Slide 22: Asset quality, liquidity & solvency
Index Merger Key highlights Unicaja & Liberbank Asset quality, Results & business liquidity & solvency 21
Slide 23: Doubtful loans continue to fall; NPL ratio 4.2%
Doubtful loans continue to fall thanks to successful management, the NPL ratio declines 62 bp in 2020 to 4.2% Non performing loans evolution NPL balances (€ million) NPL ratio (%) (-2,034M€) CAGR(*) -22.1% -5.6% -0.6% 9.8% 3,215 8.7% 2,710 -12.6% 6.7% 1,926 4.8% 4.2% 1,351 1,181 2016 2017 2018 2019
Slide 24: Moderated evolution of mitigating measures requests
... With moderated evolution of mitigating measures requests… Corporates Individuals ICO lines Individuals – payments moratoria (Drawn down balances) % mortgages 95% 99% -33.6% 897 854 578 567 Approved limit Drawn down balance Approved Outstanding 23
Slide 25: NPL coverage improving by 13.5 p.p. YoY
… with coverage improving by 13.5 p.p. YoY and 1.5 p.p. QoQ Exposure, NPL and coverage NPL collateralization levels Gross exposure NPLs Type of NPLs (€ million) NPLs % Appraisal value 1 Unsecured 177 15% - € million € million Secured 1,004 85.0% 2,219 % NPL ratio % Coverage ratio ow/ Finish Building
Slide 26: Foreclosed assets coverage slightly improved
Slightly improvement in foreclosed assets coverage, while volume of sales tend to normal levels Foreclosed assets as at December 2020 (€ million) Released provisions over net book value (%) Provisions TOTAL FORECLOSED ASSETS 13.7 40.7 52.3 96.3 64.3 69.0 25.1 released (€M) Gross value 1,091 405 Net
Slide 27: NPAs decreased by 8.0% in 2020, improving Texas ratio
NPAs decreased by 8.0% in 2020 and 5.6% QoQ, improving Texas ratio Significant decrease of NPAs Non performing assets evolution (€ Bn) CAGR(1) 5.8 -20.8% 65,2% 4.6 NPA coverage 2.6 3.6 1.9 -8% 1.7 2.5 2.3 3.2 1.1 1.1 2.7 1.9 2016 2017 2018 1.4 2019 1.2 2020 1,2% Foreclosed assets NPLs Net NPA / tota
Slide 28: Strong liquidity position
Strong liquidity position Loan to deposits ratio NSFR & LCR Ratio Requirements Unicaja Banco 4Q 2020 71.4% 65.2% NSFR 100% 142% LCR 100% 310% 2019 2020 Liquid Assets Breakdown Wholesale funding maturities – Balances (€M) and costs Liquidity generation capacity (€ million) Covered bonds issuance capa
Slide 29: Sustained growth in solvency position
Sustained growth in solvency position, CET 1 FL grew 33 bp QoQ 4Q 2020 Regulatory solvency CET1 fully loaded bridge 4Q 2020 15.0% 0.1% 18.2% 0.2% 16.6% 14.7% CET 1 Total Capital CET1 FL RWA var. Rest CET1 FL 3Q 20 4Q 20 4Q 2020 RWAs density 93% 59% €1,332m Total capital excess over OCR (1) 39% Mortg
Slide 30: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 29
Slide 31: Appendix: Additional Information
Appendix Additional Information 30
Slide 32: Additional financial information: Balance Sheet
Additional financial information Unicaja Banco Group Balance Sheet Balance sheet €m 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 1Q 2019 4Q 2018 Cash & equivalents 6,667 4,600 7,250 2,366 4,559 2,614 2,040 2,821 4,280 Assets held f or trading & at f air value through P&L 294 362 162 132 1
Slide 33: Additional financial information: P&L
Additional financial information P&L Unicaja Banco Group Profit & loss account €m 2020 FY 9M 2020 1H 2020 1Q 2020 2019 FY 9M 2019 1H 2019 1Q 2019 2018 FY Net Interest Income 578 427 277 140 579 437 293 145 601 Net Fees 233 170 114 61 231 172 114 55 219 Dividends 15 13 11 7 28 24 20 9 23 Associates 3
Slide 34: Many thanks
Many thanks Unicaja Banco Investor Relations ir@unicaja.es +34 91 330 58 65 33