Unicaja Banco S.a. · BME:UNI
Unicaja Banco — Q3 2021 Earnings Presentation
38 slides from Unicaja Banco's earnings presentation, Nov 3, 2021
Slide 1: 3Q 2021 Earnings presentation
3Q 2021 Earnings presentation November 3rd 2021
Slide 2: Strategic review
Strategic review December 10th 2021 2
Slide 3: Merger advances at fast speed
Merger advances at fast speed Updated calendar Main milestones achieved • New organizational structure deployed on August 6th 4Q20 4Q20 Merger announcement Corporate • Appointed Unicaja’s new CEO and Board of Directors governance • Alignment of internal policies and procedures well advanced 1Q21 Mer
Slide 4: Merger adjustments to unlock future value
Merger adjustments to unlock future value Badwill calculation Liberbank´s Total Equity (July 31st 2021) €3,125m Valuation adjustments Valuation adjustments (net of taxes) (€994m) Amount in €m CET 1 impact Adjusted Equity €2,131m (gross of taxes) (€m) Acquisition price (€830m) Loan book 295 295 Badwi
Slide 5: Cost synergies higher than initial estimate
Cost synergies higher than initial estimate Cost synergies updated (€m) Expected costs evolution (€m) (1) Cost synergies are 20% of 2020 ~210 combined cost base 192 957 ~770 2023E Previous synergies New synergies 2020 2023E Measures already in place Liberbank agreed leave employees c. €40m (yearly s
Slide 6: Revenue synergies
Revenue synergies Mutual funds: Clear opportunities to keep improving fee income by 2023 Lending: Commercial dynamism Mortgage performing book (€bn) New mortgage lending (€m) 990 ~€80m 15.1 896 14.1 583 13.5 626 > 45 12.9 271 +50% 407 > 35 2017 2018 2019 2020 3Q20 3Q21 Asset allocation Inertial volu
Slide 7: Coverage levels will facilitate lower cost of risk and Opex
Coverage levels will facilitate lower cost of risk and Opex Best in class coverage levels with a conservative loan book Total provisioning to normalize at low levels NPLs coverage NPAs coverage Credit impairments: • €295m gross provisions in the valuation adjustments to increase coverage to 72% 8% •
Slide 8: Agenda
Key highlights Agenda Business activity Financial results Asset quality Solvency & Balance Sheet 8
Slide 9: Key Highlights
Key Highlights Strong commercial momentum maintained in a seasonal weak quarter while Mutual funds Mortgages Business integration was taking place activity Mutual funds, insurance business and residential mortgages to keep driving growth and +27% YoY +4.0% YoY profitability NII temporary influ
Slide 10: Agenda
Key highlights Agenda Business activity Financial results Asset quality Solvency & Balance Sheet 10
Slide 11: Customer funds
Customer funds Customer funds breakdown Institutional deposits (€bn) Million Euros 3Q20 2Q21 3Q21 QoQ YoY Customer funds on balance sheet 66,824 70,552 73,283 3.9% 9.7% 20,828 Public institutions 5,946 6,960 9,198 32.1% 54.7% €2.9bn are currently Retail customers 60,704 63,453 63,389 -0.1% 4.4% char
Slide 12: Mutual funds
Mutual funds Mutual funds evolution (€bn) Mutual funds net inflows (€m) CAGR: 7% 389 c.7% Mkt. share in the quarter (1) 11.8 168 10.1 3Q20 3Q21 9.2 8.7 Mutual funds fees (€m) 71 55 +28 % 2018 2019 2020 3Q21 9M20 9M21 (1) Source; Inverco net subscriptions for 3Q21. 12
Slide 13: Lending: Performing book
Lending: Performing book Performing loan book Breakdown. 75% pure retail and public sector Million Euros 3Q20 2Q21 3Q21 QoQ YoY Public sector 5,029 6,006 5,915 -1.5% 17.6% Corporate loans 13,775 13,769 13,435 -2.4% -2.5% 5% 11% Public sector Real Estate developers 978 943 926 -1.8% -5.3% Other corpo
Slide 14: New lending
New lending Residential mortgage (€m) Business lending (€m) 990 10.6% 1,133 1,044 Market share(1) 896 3Q20 3Q21 3Q20 3Q21 Consumer lending (€m) Total new lending accumulated in the year (€m) 152 9,976 9,531 122 ICO Loans 25% 3Q20 3Q21 9M20 9M21 (1) Source: Chamber of notaries as of June 21 (L12M) 14
Slide 15: Lending: Main portfolios
Lending: Main portfolios Residential mortgage portfolio Corporates portfolio Strong geographic leadership with potential to capture captive clients 7% outside traditional territories 41% Real Estate Main KPIs SMEs & Ses 72% at floating rate Other corporates 52% 87% first residence 89% loan to
Slide 16: We continue to expand our sustainable products with a new green mortgage
We continue to expand our sustainable products with a new green mortgage Green Mortgage Agro Eco Sustainable Financing Credit Line Green Eco Motor Loan Mobility Master Plan (financing recharging points for electric or plug-in hybrid vehicles) Sustainable Investment Funds (Unifond Sostenible & Liberb
Slide 17: Agenda
Key highlights Agenda Business activity Financial results Asset quality Solvency & Balance Sheet 17
Slide 18: Quarterly income statement
Quarterly income statement 3Q21 P&L statement. Proforma1 Million euros 3Q20 2Q21 3Q21 QoQ (%) YoY (%) Revenues Net interest income: Impacted by the lower Euribor, restructuring of the Alco portfolio in the integration process and increasing Net Interest Income 283 266 251 -5.7% -11.2% excess liqui
Slide 19: Net interest income: Yields
Net interest income: Yields Customer spread (1) (%) Lending yields 3Q21 1.51% 1.35% Total book 2.00% 1.56% 1.56% 1.54% 1.44% 1.38% 1.50% 1.00% 1.20% 1.19% 1.15% 1.09% 1.04% 0.50% Front book Back Book 0.00% -0.50% -0.35% -0.48% -0.50% -0.48% -0.49% -1.00% 3Q20 4Q20 1Q21 2Q21 3Q21 1.28% 1.10% Mortgage
Slide 20: Net interest income: Evolution
Net interest income: Evolution Net interest income quarterly evolution (€m) A Loan yield: Average yield down 7 bps QoQ mainly on the back of Euribor repricing which is almost over A B C Lending volumes: Keep improving in a seasonal weak 2 quarter and it is expected to keep delivering positive 8
Slide 21: Fee income
Fee income Fee income evolution. €m Fee income breakdown QoQ 9M21 vs Million Euros 3Q20 2Q21 3Q21 9M20 9M21 (%) 9M20 (%) 121 Recurrent fees 100 117 121 3.3% 292 355 21.6% 117 117 111 Banking Fees 54 67 72 8.2% 162 203 25.2% 100 Non-Banking fees 46 50 49 -3.1% 130 152 17.1% Mutual funds 20 24 25 3.0%
Slide 22: Operating expenses
Operating expenses Operating expenses (€m) Branches and employees evolution 1,999 1,832 726 714 1,628 1,524 Branches 1,371 67 74 202 208 2017 2018 2019 2020 3Q21 456 432 Employees(1) 11,339 10,718 10,445 9,907 9,041 9M20 9M21 Personnel expenses Administrative expenses D&A 2017 2018 2019 2020 3Q21 Si
Slide 23: Cost of risk
Cost of risk Loan loss provisions (€m) Quarterly cost of risk(1) (bps) 108 81 103 76 12 23 81 56 58 77 56 41 23 38 96 53 29 80 17 17 40 53 9 28 16 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Non-recurrent LLP Recurrent LLP Total CoR Recurrent CoR CoR 2023E c. 20 bps (1) Annualized quarterly co
Slide 24: Agenda
Key highlights Agenda Business activity Financial results Asset quality Solvency & Balance Sheet 24
Slide 25: Non performing loans
Non performing loans Non performing loans evolution Loan book NPL ratio and coverage Coverage 84% 58% 59% >100% 72% Coverage 62% 63% 63% 72% (%) (%) 3.9% 3.7% 3.4% 4.0% 14.2% 3.2% 3.5% 3,006 2,506 2,079 1,986 1,862 3.0% 1,785 2.5% 2,006 Stock (€m) 1,506 2.0% 5.2% 1,006 1.5% NPL ratio (%) 2.9% 2.5% 3
Slide 26: Foreclosed assets
Foreclosed assets Foreclosed assets quarterly evolution (€m) Foreclosed assets breakdown and coverage 47 Coverage Coverage Foreclosed assets (€m) Gross Debt NBV (€m) (%) 66 Residential 698 324 374 54% Building under construction 266 92 174 66% 2,342 2,323 Commercial RE 269 130 139 52% Land 1,090 335
Slide 27: Agenda
Key highlights Agenda Business activity Financial results Asset quality Solvency & Balance Sheet 27
Slide 28: Solvency (I/II)
Solvency (I/II) CET 1 Fully loaded(1) quarter evolution PPA impact. The impact net of taxes amounts to 178bp. In addition the impact coming from DTAs and thresholds together with integration costs(2) implies another 82p 178 15 Following a conservative criteria we write-off € 225m DTAs from balan
Slide 29: Solvency (II/II)
Solvency (II/II) Capital ratios. September 2021 Regulatory requirements(1). SREP 12.6% 16.6% 15.4% 2.5% 14.9% 13.6% 1.9% CET 1 FL buffer(1) c.€1.9bn 1.2% 2.5% MDA(1) buffer 402 bps 4.5% CET 1 Total Capital SREP requirement Fully Loaded Phased in Pillar 1 CCB CET 1 P2R AT1 T2 1. SREP requirement appl
Slide 30: Fixed income portfolio
Fixed income portfolio Fixed income portfolio evolution (€bn) Fixed income portfolio 32 2 30 25 Duration 2.5 yrs Fair value 30 Amortized cost Yield 0.8 % 3Q20 2Q21 3Q21 Fixed income portfolio breakdown (%) 11% Public debt 15% Sareb 73% Private debt 30
Slide 31: Liquidity and wholesale funding
Liquidity and wholesale funding Liquid assets (€bn) Capital markets maturities (1) 34.5 10,000 2.86% 4.00% 9,000 2.64% 2.61% 3.00% 8,000 1.30% 0.90% 2.00% 18.0 7,000 1.00% 6,000 5,222 0.00% 17.0 5,000 -1.00% Maturities (€m) 44.6 44.1 4,000 -2.00% 3,000 2,000 -3.00% Cost of maturities Liquid assets C
Slide 32: Appendix
Appendix | Ws icaiaBanco
Slide 33: Share and book value
Share and book value Share metrics and book value (1) The merger with Liberbank was registered on Friday July 30th. Unicaja Banco issued 1,075 million shares to be exchanged for Share and liquidity: 3Q21 Liberbank shares under the agreed exchange rate for the merger. # O/S shares (m) 2,655 The
Slide 34: Income statement. Proforma
Income statement. Proforma 9M21 vs Million euros 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 QoQ (%) 9M20 9M21 9M20 (%) Net Interest Income 287 268 283 286 277 266 251 -5.7% 837 793 -5.3% Net fees 103 95 100 111 117 117 121 3.3% 298 355 19.1% Dividends 7 4 2 3 1 17 1 -91.3% 13 19 41.4% Associates 12 32 13 12
Slide 35: Legal income statement
Legal income statement Merger 9M21 Million euros 9M21 adjustments (excl. Adjustments) Net Interest Income 495 495 Net fees 228 228 Dividends 15 15 Associates 31 31 Trading income + Exch. Diff. 31 31 Other revenues/(expenses) (14) (17) 3 Gross Margin 786 (17) 804 Operating expenses (484) (484) Person
Slide 36: Balance sheet
Balance sheet Million euros 30/09/2020 31/21/20 30/06/2021 30/09/2021 Cash on hand, Central Banks and Other demand deposits 4,600 6,667 8,855 15,367 Assets held for trading & Finantial assets at fair value through P&L 362 284 169 356 Financial assets at fair value through other comprehensive income
Slide 37: Important legal information
Important legal information 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 i
Slide 38: Investor relations
Investor relations ir@unicaja.es 38