Eurobank S.A. · ATHEX:EUROB
Eurobank — Q4 2012 Earnings Presentation
26 slides from Eurobank's earnings presentation, Mar 27, 2013
Slide 1: Eurobank 4th Quarter 2012 Results
Eurobank 4th Quarter 2012 Results March 27th, 2013
Slide 2: Eurobank FY 2012 Highlights
NBG Group | Q4.12 Results Eurobank FY 2012 Highlights €2.8bn deposit inflows in Greece since the June elections (€1.8bn in 4Q12); Total deposit outflows at €0.8bn for the year. Eurosystem funding reduced to €20.8bn from peak of €34bn. 90+ formation showing improvement in 2H12; 90+ coverage up to
Slide 3: Capital and liquidity
NBG Group | Q4.12 Results Capital and liquidity page 3
Slide 4: Recap needed to compensate for Greek Sovereign risk losses
NBG Group | Q4.12 Results Recap needed to compensate for Greek Sovereign risk losses EBA Core Tier I €1.9bn capital actions since the onset of the crisis Actions Disposal of Dias Disposal of LME Disposal of 11.6% Total CAD treasury shares absorption Polish Ops €350m Turkish Ops €300m €100m €450m2 €2
Slide 5: Liquidity evolution
NBG Group | Q4.12 Results Liquidity evolution Eurosystem Exposure was lowered mainly via: • reducing the funding GAP in Greece & NE (loan deleverage & deposit gathering), • repo of non‐Greek risk securities in the International Markets • selling of Turkey and Poland • deleverage in fixed income port
Slide 6: Selective de-risking of the Greek loan portfolio
NBG Group | Q4.12 Results Selective de‐risking of the Greek loan portfolio Breakdown of Consumer Loans portfolio Greece Gross Loans (€ bn) Remaining Customers Unsecured with 85% identified Real Estate ownership Remaining 59% Unsecured 33% 42.0 38.5 Consumer1 8.3 ‐40% 5.0 Auto Auto 15% 8% FY08 FY12 +
Slide 7: Loan book de-risking continues – deposits steadily recover in Greece
NBG Group | Q4.12 Results Loan book de‐risking continues – deposits steadily recover in Greece Controlled deleveraging in Greece ‐ international Deposits in Greece recover sharply; international business stable deposits resilient 159.1% 151.5% 147.7% 148.7% 143.1% 140.4% 51.4 50.0 49.0 Group L/D 132
Slide 8: Results review
NBG Group | Q4.12 Results Results review page 8
Slide 9: Core pre-provision income to rebound after the recapitalization and market normalization
NBG Group | Q4.12 Results Core pre‐provision income to rebound after the recapitalization and market normalization Core pre‐provision income evolution (€m) OpEx Fees NII improvement reduction reduction 301 311 ‐8 ‐180 275 34 Business impact 60 245 221 GGBs net of EFSF bonds funding benefit 20 30 Rec
Slide 10: NII hit by high funding costs and further reduction in Euribor rates
NBG Group | Q4.12 Results NII hit by high funding costs and further reduction in Euribor rates NII evolution per segment NII evolution per region 497 496 483 Total NII 426 373 358 303 Loan margin 595 603 608 597 603 610 605 355 363 350 312 265 254 199 Greece 15 22 10 Capital & bonds 41 37 40 45 Inte
Slide 11: Asset re-pricing continues, only partly offsetting increased funding cost
NBG Group | Q4.12 Results Asset re‐pricing continues, only partly offsetting increased funding cost Evolution of Greek spreads (%) Evolution of NIM (%) 4Q09 4Q10 4Q11 1Q12 2Q12 3Q12 4Q12 NIM (%) 4Q11 1Q12 2Q12 3Q12 4Q12 Core deposits ‐0.21 0.04 0.16 ‐0.33 ‐0.41 ‐0.51 ‐0.55 Group 2.51 2.33 2.11 2.06
Slide 12: Commissions recover in 4Q as mutual funds and insurance performance improves
NBG Group | Q4.12 Results Commissions recover in 4Q as mutual funds and insurance performance improves Commission income evolution per segment Commission income evolution per region 101 98 92 15 89 20 86 81 86 12 Adding back Govt’n 80 86 18 guarantees cost 80 80 17 78 7 78 19 19 8 7 69 71 7 69 71 7
Slide 13: Costs drop more than €300m since 2008
NBG Group | Q4.12 Results Costs drop more than €300m since 2008 In FY 2012: OpEx down 23% cumulatively since 2008 Group, Greek and International OpEx down more than 6%yoy 1,566 POL 151 Cost reduction 23% since the start of the crisis TUR 57 Quarterly evolution of costs 1,358 ‐306 ‐23% Int’l Oper
Slide 14: Greek 90dpd formation continues its declining trend after peaking back in 2Q12
NBG Group | Q4.12 Results Greek 90dpd formation continues its declining trend after peaking back in 2Q12 90dpd formation in Greece in decline 90dpd ratio 4Q11 1Q12 2Q12 3Q12 4Q12 874 811 Group 15.7% 17.6% 19.6% 21.3% 22.8% 768 Greece 16.0% 18.2% 20.5% 22.5% 24.2% 710 695 Int’l Ops 14.4% 15.3% 16.0%
Slide 15: Int'l Operations asset quality: 90+ ratios and gross formation
NBG Group | Q4.12 Results Int’l Operations asset quality: 90+ ratios and gross formation 20.4% 21.8% 22.1% 23.3% 17.7% 19.0% 18.6% 19.7% 15.2% 16.4% 16.0% 17.1% 14.6% 15.0% 90+ over av. 14.3% 12.4% 13.4% 13.9% loan book 39 42 47 37 38 33 32 26 32 31 21 32 33 32 15 19 14 Gross 90+ 3 formation € m. 4Q
Slide 16: Int'l Operations performance: Fully self funded
NBG Group | Q4.12 Results Int’l Operations performance: Fully self funded Self‐funded International Operations Net loans‐to‐deposits ratio well below 100% 143.2% L/D +1.5 +4.2 9.2 +20% +85% 102.5% 100.8% 8.6 95.7% 95.8% 93.3% 94.0% FY07 FY11 1Q12 2Q12 3Q12 FY12 15‐Mar 7.1 Δnet loans & Δdeposits FY07
Slide 17: Int'l Operations: provision charge spike affects bottom line
NBG Group | Q4.12 Results Int’l Operations: provision charge spike affects bottom line Operating Income Net Profit 170 18 147 141 139 7 7 134 ‐12 4Q11 1Q12 2Q12 3Q12 4Q12 ‐59 4Q11 1Q12 2Q12 3Q12 4Q12 Operating expenses Provision charge 114 98 90 90 85 87 84 64 55 45 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q1
Slide 18: International Operations profitability
NBG Group | Q4.12 Results International Operations profitability Net Profit 12.6 11.5 10.7 11.5 10.4 8.7 8.8 8.7 6.8 6.7 7.5 7.3 7.4 5.9 5.7 5.9 3.6 4.6 4.2 3.1 3.3 3.5 1.7 2.0 4Q10 4Q11 4Q12 4Q10 4Q11 4Q12 3Q11 4Q11 4Q12 Cyprus Serbia Luxemburg 1.9 3.3 3.3 4.2 0.1 1.6 1.8 -1.3 -3.1 -2.0 -1.1 -1.9 -
Slide 19: Appendices
NBG Group | Q4.12 Results Appendices page 19
Slide 20: Financial Ratios
NBG Group | Q4.12 Results Financial Ratios Financial Ratios FY12 FY11 4Q12 4Q11 Net Interest Margin 2.05% 2.52% 1.77% 2.51% Cost‐Income 59.9% 47.7% 75.0% 54.7% Provision Charge (% of net loans) 3.69% 2.75% 4.07% 2.91% NPLs (% of loans) 18.3% 12.4% NPLs coverage 53.5% 54.4% EBA core Tier 1 ratio 10.8
Slide 21: Summary Figures
NBG Group | Q4.12 Results Summary Figures Summary Figures Group (€ m) 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Net Interest Income 496.2 482.9 426.4 373.4 358.3 302.8 Net Fees & Commissions 86.3 78.4 68.5 60.5 62.4 70.6 Non Core Income 31.2 ‐34.9 41.5 50.0 ‐23.4 ‐35.4 Total Operating Income 613.8 526.4 536.4 4
Slide 22: Key figures of Int'l Operations – FY12
NBG Group | Q4.12 Results Key figures of Int’l Operations – FY12 Romania Bulgaria Serbia Cyprus Ukraine LUX Int’l Δyoy%* Total Assets 4,095 3,216 1,623 3,497 741 1,351 14,155 ‐6.1% Balance Sheet Balance Total Loans (Gross) 2,955 2,760 1,058 1,458 657 466 9,354 ‐2.3% Sheet Total Deposits 1,741 2,181
Slide 23: FY 2011 – Summary per Segment
NBG Group | Q4.12 Results FY 2011 – Summary per Segment Wealth Global & Capital Capital & Elimination Retail Corporate Int’l Operations Total (€ m) Management Markets Other Center Interest income 1,066.5 547.2 4.3 ‐96.4 ‐65.3 0.0 508.8 1,965.0 Net fee & commission income 35.6 62.4 35.8 26.9 0.27 0.0
Slide 24: FY 2012 – Summary per Segment
NBG Group | Q4.12 Results FY 2012 – Summary per Segment Wealth Global & Capital Capital & Elimination Retail Corporate Int’l Operations Total (€ m) Management Markets Other Center Interest income 661.3 409.8 61.0 10.5 ‐81.6 0.0 400.0 1,460.9 Net fee & commission income 30.2 58.6 31.3 ‐19.1 0.23 0.0
Slide 25: Contacts
NBG Group | Q4.12 Results 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@eurob
Slide 26: Disclaimer
NBG Group | Q4.12 Results 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 communic