Optima Bank Sa · ATHEX:OPTIMA
Optima Bank Sa — Q1 2024 Earnings Presentation
43 slides from Optima Bank Sa's earnings presentation, May 21, 2024
Slide 1: Optima bank 1Q 2024 Results
Optima bank 1Q 2024 Results 21 May 2024
Slide 2: 1Q 2024 results in a nutshell
1Q 2024 results in a nutshell Net Profit ROTE Loans Deposits Capital 1Q 2024 Fully Loaded reported: 1Q 2024: Total Capital €32.7m 25.4% €2.8bn €3.3bn 15.9% (+82% YoY) Loans Δ Deposits Δ €0.9bn €1.0bn (+49% YoY) (+40% YoY) Executive Summary 2
Slide 3: 1Q 2024 key P&L items
1Q 2024 key P&L items €mn 1Q 2024 1Q 2023 % chg YoY 4Q 2023 NII 44.5 27.3 63% 43.3 NFI 9.8 6.8 44% 9.6 Core income 54.3 34.1 59% 52.8 Opex (14.1) (11.7) * 20% (14.8) * PPI 44.9 25.9 * 74% 43.1 * Impairments (4.7) (4.1) 15% (1.2) Profit Before Tax 40.2 22.3 81% 38.1 Net Profit reported 32.7 18.4 78%
Slide 4: 1Q 2024 KPIs
1Q 2024 KPIs 1Q 2024 1Q 2023 4Q 2023 NIM 4.48% 4.03% 4.58% NFM 0.99% 1.00% 1.01% Cost to Core 26.0% 34.4% 28.0% Income ROTE 25.4% 28.6% 29.0% TE (€mn) 532 262 499 FL CAD 15.9% 12.4% 17.4% Executive Summary 4
Slide 5: The loan book grew 49% YoY
The loan book grew 49% YoY Loan Book Trajectory Gross Loans Evolution €mn €mn Corporate Retail 2,793 2,458 2,236 701 2,044 667 1,872 570 546 471 2,092 1,666 1,791 1,401 1,499 1Q 2023 1H 2023 9M 2023 FY2023 1Q 2024 Y-t-d Optima bank +€335mn (+13.8%) Market -€1.0bn (-0.9%) Segment definitions provided
Slide 6: Deposits grew 40% YoY
Deposits grew 40% YoY Deposits grew 47% YoY Time vs Demand deposits €mn Retail Corporate Demand Time 3,331 3,121 3,193 2,782 41% 34% 47% 41% 43% 47% 49% 43% 51%49% 1,175 2,378 1,045 1,187 968 799 59% 53% 57% 51% 49% 2,075 2,006 2,156 1,813 1,579 1Q 2023 1H 2023 9M 2023 FY 2023 1Q 2024 1Q 2023 1H 202
Slide 7: AuM increased by 42% YoY
AuM increased by 42% YoY Assets Under Management €mn +€1.0bn YoY 3,566 3,329 145 167 208 194 521 2,537 476 116 149 356 2,691 2,492 1,916 1Q 2023 FY2023 1Q 2024 Stocks Bonds Mutual funds Other AuM include assets from the brokerage business, PB and mutual funds subsidiary and incorporate market moveme
Slide 8: Ample liquidity with zero ECB funding
Ample liquidity with zero ECB funding Strong Liquidity Metrics HQLAs 4Q 2023 LDR 78% 73% 71% 76% 83% Other securities; LCR NSFR 11% 242.8% 229.1% 225.9% Cash & Cash 189.9% at Central €628mn Bank; 42% 163.8% Government Bonds; 47% 129.6% 130.4% 131.7% 124.0% 124.0% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2
Slide 9: Q1 performance on track to meet FY 2024 guidance
Q1 performance on track to meet FY 2024 guidance 2024 Guidance 1Q 2024 Depos Growth YoY c.€900mn +€139mn Net Loans Growth YoY c.€700mn +€332mn YE 3M Euribor assumption 3.0% 3.8% Cost to Income <30% 26% NPE ratio <1.0% 1.1% Net Profit >€124mn €32.7mn ROTE >20% 25.4% Executive Summary 9
Slide 10: Optima bank vs the market
Optima bank vs the market Optima bank Market* ROTE 25.4% 14.3% EU peers @13.1%** NIM 4.48% 2.79% Cost to Core Income 26% 33.1% Depos Growth YoY 40% 1.1% Loan Growth YoY 49% -2.9% NPE ratio 1.1% 4.1% DTC/CET1 0% 55% * Factset, average 4 Greek systemic banks * * Factset, average of the 29 largest EU b
Slide 11: Customer satisfaction remains world class
Customer satisfaction remains world class NPS (Net Promoter Score) Consistently high NPS 12M rolling 87,31 50 40 60 30 70 20 80 7,73 10 82,34 90 4,97 2022 2023 2024 0 100 • NPS measures the loyalty of customers to a company. Detractor Passive Promoter • First developed in 2003 by Bain and Company Ma
Slide 12: Financial Analysis
Optima bank Financial Analysis
Slide 13: Q1 Core Income grew 59% YoY driven by both NII and commissions
Q1 Core Income grew 59% YoY driven by both NII and commissions NII grew 63% YoY Net fees grew 44% YoY NIM 4.03% 4.48% NFM 1.00% 0.99% Financial Analysis 13
Slide 14: NIM remains at all time highs
NIM remains at all time highs NII grew 3% QoQ NIM hovers at all time highs NIM 4.58% 4.48% 45bps improvement 4.58% 4.48% 4.45% 4.44% 4.03% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Financial Analysis 14
Slide 15: Q1 loan interest income +78% YoY
Q1 loan interest income +78% YoY NII Breakdown €mn 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Loans 26.5 32.8 38.4 43.8 47.1 Fixed income 3.2 4.0 4.9 6.2 6.4 Deposits -2.7 -5.4 -8.0 -9.4 -10.7 CB & Interbank 0.8 2.2 3.0 3.0 1.9 Other -0.5 -0.2 -0.2 -0.2 -0.2 Total 27.3 33.4 38.3 43.3 44.5 Financial Ana
Slide 16: Commissions grew 44% YoY
Commissions grew 44% YoY Net fees breakdown Fee margin stable at high levels €mn 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Loans 1.4 1.6 1.9 2.0 2.2 1.00% 1.01% 1.00% LGs 2.3 2.4 3.0 3.0 3.2 0.99% 0.95% Brokerage 1.7 1.8 1.7 2.0 2.2 Mutual Funds 0.6 0.7 0.6 0.8 0.9 Other 0.8 1.1 1.1 1.8 1.3 Net Fees 6
Slide 17: Cost to Core Income remained below 30%
Cost to Core Income remained below 30% Normalized OPEX Cost to Core Income 452 469 481 500 512 FTEs 14.8 34.4% 14.1 11.7 12.3 12.2 2.2 1.9 30.0% 1.6 1.8 1.7 28.0% 4.0 26.3% 4.9 26.0% 4.3 4.1 4.1 8.7 6.3 6.4 7.4 6.0 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Staff
Slide 18: Cost of Risk
Cost of Risk Total Impairments CoR (bps) 93 26 64 21 73 €mn 4.7 4.1 3.4 1.2 1.2 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Financial Analysis 18
Slide 19: The Balance Sheet has expanded by 45% YoY
The Balance Sheet has expanded by 45% YoY 1Q 2024 Balance Sheet Tangible Equity (€m) €mn €mn 1Q 2024 FY 2023 Δ 1Q 2023 Δ Cash 414 605 (191) 350 65 499 Securities 722 677 45 478 244 536 SCI Net Loans 2,763 2,431 332 1,850 913 356 356 Assets 4,069 3,868 201 2,801 1,268 243 Deposits 3,331 3,192 139 2,3
Slide 20: Balance sheet structure 1Q 2024 vs 1Q 2023
Balance sheet structure 1Q 2024 vs 1Q 2023 Assets Liabilities & Equity €mn 2,801 4,069 4,609 2,801 298 113 116 722 Cash 83 256 Other Liabilities Due from Banks 93 478 3,331 Deposits Securities Due to Banks Net Loans 2,763 2,378 Equity Other 1,850 82 543 68 124 170 272 1Q 2023 1Q 2024 1Q 2024 1Q 2023
Slide 21: Loan book structure and rates
Loan book structure and rates Loan Book rate Gross Loans Breakdown 1Q 2024 Mortgages 15% Retail Other/Consumer 5% 284bps improvement BB Revolving €701mn 7.04% 31% 6.93% 7.00% 6.64% BB Term; 48% 5.97% 5.08% SMEs-Term Pass through Corporate rate at 83% 24% 4.16% Large Corporate- Term 32% €2,092mn SMEs
Slide 22: 1Q 2024 loan book structure
1Q 2024 loan book structure Loans per sector Mortgages 3.7% Consumer 0.4% Trade 12.9% Corporate/BB loans constitute the overwhelming majority of the Manufacturing 10.3% loans with mortgages/consumer Real Estate 11.2% credit at just 4.1% of the book Energy 13.4% Construction 8.2% Financial/Insurance
Slide 23: Appetite for credit continues; €0.6bn of new loan disbursements in 1Q 2024
Appetite for credit in our markets continues; €0.6bn of new loan disbursements in 1Q 2024 Consistently high loan disbursements 1Q 2024 New Loan Disbursements €mn €mn +34% YoY/+14% QoQ 642 565 642 1Q 2024 521 478 483 493 2,018 FY 2023 1,386 FY 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 High
Slide 24: Deposit mix and rates
Deposit mix and rates Deposits per category Deposits Rates 1.43% 1.30% Corporate 1.15% Demand 15% 0.86% Retail Demand 34% 0.49% €3,331mn Corporate Time 20% 0.21% Deposit Beta 36% 0.15% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Retail, Time 31% Financial Analysis 24
Slide 25: Securities book 50% higher YoY
Securities book 50% higher YoY Breakdown per classification Breakdown per issuer AMOC €335mn 47% GGBs 17% €719mn €303mn FVTOCI FVTPL 11% 42% Other 53% €719mn €81mn T-Bills 23% Securities over assets Other Sovereign 478 544 628 676 719 7% 18% 17% 17% 17% 17% 1Q 2023 1H 2023 9M 2023 FY 2023 1Q 2024 Fi
Slide 26: Asset Quality
Optima bank Asset Quality
Slide 27: NPE ratio well below domestic and European peers
NPE ratio well below domestic and European peers NPE ratio NPE ratio rise to be reversed ➢ Increase of ~€20mn 1.11% ➢ Actions already taken: ✓ €1.8mn margin loan fully repaid in April 2024 ✓ €6.6mn RES project sold to new owner 0.55% 0.54% 0.49% and will be fully repaid 0.45% ✓ €7mn hotel exposure s
Slide 28: Solid coverage supporting our growth
Solid coverage supporting our growth Total Coverage above 100% Texas Ratio Cash coverage NPE Collaterals/NPEs 149% 121% 5% 117% 4% 4% 3% 87% 2% 32% 34% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1Q 2023 1Q 2024 Asset Quality 28
Slide 29: Capital
Optima Capital
Slide 30: Capital Ratio comfortably above regulatory requirement despite the RWA expansion
Capital Ratio comfortably above regulatory requirement despite the RWA expansion Capital Trajectory Capital 30
Slide 31: RWA density on the rise due to surge in new loan generation
RWA density on the rise due to surge in new loan generation RWA Density RWAs evolution €mn 76% 70% 69% 67% 64% 1Q 2023 1H 2023 9M 2023 FY 2023 1Q 2024 Capital 31
Slide 32: Appendix
Optima Appendix
Slide 33: Income Statement
Income Statement in EURmn 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net interest income 27.3 33.4 38.3 43.3 44.5 Net fee and commission income 6.8 7.5 8.2 9.6 9.8 Core Income 34.1 41.0 46.5 52.8 54.3 Other income 0.7 0.1 0.1 0.3 0.2 Trading Income 3.4 4.2 5.0 4.8 4.6 Total Net Revenues 38.2 45.3 51.6
Slide 34: Income Statement
Income Statement in EURm 1Q 2023 1H 2023 9M 2023 FY 2023 1Q 2024 Net interest income 27.3 60.7 99.0 142.2 44.5 Net fee and commission income 6.8 14.3 22.5 32.1 9.8 Core Income 34.1 75.0 121.5 174.3 54.3 Other income 0.7 0.8 1.0 1.3 0.2 Trading Income 3.4 7.6 12.6 17.4 4.6 Total Net Revenues 38.2 83.
Slide 35: Balance Sheet
Balance Sheet 1Q 2023 1H 2023 9M 2023 FY 2023 1Q 2024 Cash & Cash at C.B. 350 512 709 605 414 Securities 478 545 637 676 722 Net Loans 1,850 2,021 2,210 2,431 2,763 PP&E 11 11 11 11 11 Intangible Assets 11 10 11 11 11 RoU assets 19 19 18 20 22 DTA 7 7 6 8 8 Other Assets 76 85 79 106 122 Total Assets
Slide 36: Macro backdrop to remain supportive in the mid-term
Macro backdrop to remain supportive in the mid-term CPI Jan 2022 - Apr 2024 GDP remains on positive trajectory 12.1% Average 2023: 3.5% 11.3% 12.0% Real GDP 8.8% 9.1% 7.2% 5.2% 6.3% 4.6% 2.7% 3.5% 3.1% 2.8% 1.6% 2.90% 1.2% Jul 22 Jul 23 Jun 22 Dec 22 Jun 23 Dec 23 Jan 22 Apr 22 May 22 Nov 22 Apr 23
Slide 37: Positive outlook for the Greek economy
Positive outlook for the Greek economy Greece returns to investment grade Greek Economic sentiment index Latest credit ratings Last upgrade on 1/12 BBB- Nov 23 Mar 19 May 19 Mar 20 May 20 Nov 21 Mar 22 May 22 Mar 23 May 23 Mar 24 Jul 19 Sep 19 Nov 19 Jul 20 Sep 20 Nov 20 Mar 21 May 21 Jul 21 Sep 21
Slide 38: Glossary 1/3
Glossary 1/3 Adjusted net profit: Net profit/loss adjusted after adding back one off expenses or deducting one off revenues Basic Earnings per share (EPS): Net profit attributable to ordinary shareholders divided by the weighted average number of shares Common Equity Tier 1 (CET1): Common Equi
Slide 39: Glossary 2/3
Glossary 2/3 Net Loans: Gross loans and advances to customers at amortised cost after ECL allowance for impairments Net interest income: the net interest income from interest bearing assets for the reported period Net interest margin (NIM): the net interest income, annualized divided by the av
Slide 40: Glossary 3/3
Glossary 3/3 Segment definitions Large corporate: Customers with turnover>€50mn serviced by RMs in the HQs SMEs: Customers with turnover between €7.5-€50mn serviced by RMs in the HQs BB (Business Banking): customers with turnover below €7.5mn, serviced by RMs in the branches Retail incorpora
Slide 41: Disclaimer
Disclaimer This is a presentation of an exclusively informative nature, intended to provide general information about the Bank. Your participation in any way in an event at which the presentation is shown or your access to it in any other way constitutes an acknowledgment that you have read the term
Slide 42: Contact information
Contact information Kostantinos Vatousis, Head of Strategy & IR kvatousis@optimabank.gr George Doukas, IRO gdoukas@optimabank.gr 32 Aigialeias & Paradeisou str. Maroussi Athens 15125 Greece OPTIMAr.AT OPTIMA GA ISIN: GRS533003000 www.optimabank.gr
Slide 43: Optima bank
Optima bank