Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2014 Earnings Presentation
33 slides from Attijariwafa Bank Sa's earnings presentation, September 2014
Slide 1: Results Presentation as of 30 June 2014
RESULTS PRESENTATION As of 30 June 14 Attijariwafa bank – Results at 30 June 2014 1
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2014 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 30 June 2014 2
Slide 3: Macro-economic environment in 1H-2014: Africa
Macro-economic environment in 1H-2014 Africa Economic trends in Africa Real GDP growth Economic growth in Africa : 4.8% in 2014F vs. 3.9% in 2013, driven by domestic demand, infrastructure and regional trade 2013 2014P 2015P North Africa: Africa 3,9% 4,8% 5,7% GDP growth rate of 3.1% in 2014F vs. 1.
Slide 4: Macro-economic environment in 1H-2014: Morocco (1/2)
Macro-economic environment in 1H-2014 X% Non agricultural GDP growth rate Morocco (1/2) Real GDP growth Economic growth GDP growth of 3.5% in 2014F : 4.5% 4.9% 4.4% 2.3% 4.3% 5.0% - Improvement of non agricultural activity (4.3% in 2014F 4.4% vs 2.3% in 2013) 3.7% 3.5% - Agricultural GDP growth rate
Slide 5: Macro-economic environment in 1H-2014: Morocco (2/2)
X% CAGR 09/June14 Macro- economic environment in 1H-2014 X% Growth rate June13/June14 Morocco (2/2) Trends in Balance of payments' main Balance of payments components (MAD billion) Slight improvement of Trade balance deficit (goods +8% +7% -2% +2% and services: G&S) to MAD 66.3 billion (MAD -2.3 bil
Slide 6: Moroccan financial market (1/2)
X% CAGR Moroccan financial market (1/2) X% Growth rate Financial market trends June 2014 Yield curve trend between December 2012 and Decrease of government bond yields in 1H- June 2014 5.94% 5.95% 2014 (maturities below 20y) 5.62% 5.04% 5.00% 4.91% 4.82% 4.39% 4.95% 4.95% 4.44% 3.92% 4.43% 3.59% 4.1
Slide 7: Moroccan financial market (2/2)
X% CAGR Moroccan financial market (2/2) X% Growth rate Financial market trends in 1H-2014 Decrease in stock market activity in Stock market: Capitalization and volume 1H-2014 in terms of trading volumes: MAD billion Trading volume / Market cap Moroccan All Shares Index (MASI) rose by 40% 14% 14% 14%
Slide 8: Macro-economic environment in 1H-2014: Tunisia - Senegal
Macro-economic environment in 1H-2014 Tunisia - Senegal Tunisia: Real GDP growth Tunisia GDP growth of 3.0% in 2014F following a growth of 5.3% 2.7% in 2013 (+3.6% en 2012) 3.1% 3.6% 5.5% inflation in 2014F lower than 2013 (6.1%) 2.9% 2.7% 3.0% In this context, the Tunisian Central Bank has kept sta
Slide 9: Moroccan banking sector
X% CAGR Moroccan banking sector X% +/- Deposits YoY growth of +4% compared to +3% between 2012 and 2013 Banking sector growth Improvement in loans growth (+4% between June 2013 and as of June 30, 2014 June 2014 vs. +3% between 2012 and 2013 and +14% p.y. between 2006 and 2012): - Deposits-Loans defi
Slide 10: Moroccan banking sector: focus on loans growth
AWB market shares in Morocco YoY growth Moroccan banking sector X% CAGR Focus on loans growth between 2008 and 2014 X% +/- +/- Retail loans(1) (MAD billion) Retail loans: YoY growth +11% +5% +3% 24.68% 24.73% 24.25% 24.15% 24.03% 22.98% 22.98% 23.38% 23.50% 196 206 204 211 128 11% 12% 11% 11% 10% 10
Slide 11: Focus on NPL ratio in Morocco
Focus on NPL ratio in Morocco NPL ratio 19.62% 11.68% 8.61% 6.33% 6.43% 6.69% 6.00% 6.00% 5.04% 4.94% 4.99% 4.42% 4.78% 4.86% 4.22% 3.04% 3.55% 3.22% 3.27% 2.99% 2004 2007 2008 2009 2010 2011 2012 2013 June-14 July-14 Banking sector AWB Decrease of the NPL ratio in Morocco from 19.62% in 2004 to 4.9
Slide 12: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2014 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 30 June 2014 12
Slide 13: Attijariwafa bank Group key figures as of June 30, 2014
Attijariwafa bank Group key figures as of June 30, 2014* Total assets: MAD 407.1 bn NBI: MAD 9.8 bn 16,286 employees +5.8% +7.2% +708 employees +4.5% Total savings**: MAD 346.1 bn Gross operating MAD 5.6 bn 3,265 branches income: +9.4% +10.2% +7.5% Deposits : +5.6% +228 branches Total loans: MAD 256
Slide 14: Lower cost-income ratio and higher cost of risk
IFRS consolidated financial statements as of June 30, 2014 Lower cost-income ratio and higher cost of risk Cost-Income ratio Cost of risk -156 bps +43 bps 43,8% 1,17% 42,2% 0,74% June-13 June-14 June-13 June-14 Improvement in cost-income ratio despite Increase of cost of risk to 1.17% (+43 bps) the
Slide 15: Profitability ratios in line with best standards
IFRS consolidated financial statements as of June 30, 2014 RoE Profitability ratios in line with -1.1 pt best standards 16.1% 15.0% Shareholders’ equity up 7% YoY and RoA June-13 June-14 stable : - Shareholders' equity growth (+7.1% YoY) RoA outpaced total assets growth (+5.8% YoY) - RoE down -1.1 p
Slide 16: Superior Operating Performance
Superior Operating Performance NBI Growth Efficiency Ratios (Cost-Income ratio) 48.1% 45.3% 45.1% 44.2% 43.8% 44.5% 25% 19% 21% 42.2% 40.8% 11% 1 8% 7% 7% 5% 2007 2008 2009 2010 2011 2012 2013 June-14 2007 2008 2009 2010 2011 2012 2013 June-14 AWB has managed to sustain a strong NBI growth AWB manag
Slide 17: Conservative Approach to Capital Management
Conservative Approach to Capital Management All Data Based on Basel II RWA Growth (MADbillion) Core Tier 1 Ratio (%) 08-13 CAGR 9.9 AWB is fully compliant 9.1 9.0% with the requirements of its local regulator (Bank 7.8 7.9 Al Maghrib) which are 287.8 7.9% 7.3 7.3 288.0 amongst the most 276.7 stringe
Slide 18: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2014 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 30 June 2014 18
Slide 19: Consolidated NBI growth of +7.2%
IFRS consolidated financial statements as of June 30, 2014 Consolidated NBI growth of +7.2% NBI in MAD billion Strong growth in the NBI: +7.2% 9.8 +4% on the net interest income 9.1 -2% on the net fee income +7.2% +45% on income from capital market activities: mainly due to the decrease of Sovereign
Slide 20: Contributions to consolidated NBI by activity
IFRS consolidated financial statements as of June 30, 2014 Structure of NBI as of June, 2014 Contributions to consolidated NBI by (10%) activity as of June 30, 2014 7% (12%) 11% (53%) 56% 26% (25%) Slight change in the NBI structure: (xx%) Structure June 2013 +2.7 pts for Banking in Morocco, Europe
Slide 21: Growth of NBI by business lines
Growth of NBI by business lines x% Growth rate BMET International Retail Banking In MAD billion 5.6 In MAD billion 4.9 +14.0% +11.8% 2.3 2.5 NBI (In MAD billion) June-13 June-14 June-13 June-14 9.8 9.1 +7.2% Specialised Financial Insurance June-13 June-14 Subsidiaries In MAD billion In MAD billion +
Slide 22: Contributions to consolidated NIGS by activity
IFRS consolidated financial statements as of June 30, 2014 Structure of NIGS as of June, 2014 Contributions to consolidated NIGS (15%) 13% by activity as of June 30, 2014 11% (11%) 60% (58%) 16% (16%) Slight change in the NIGS structure: (xx%) Structure June 2013 +2.9 pts for Banking in Morocco, Eur
Slide 23: Growth of NIGS by business lines
Growth of NIGS by business lines x% Growth rate BMET in MAD million Insurance In MAD million +7.0% -16.7% 1,276 1,365 341 284 NIGS (in MAD million) June-13 June-14 June-13 June-14 2,221 2,261 +1.8% International Retail Banking Specialised Financial June-13 June-14 In MAD million Companies In MAD mil
Slide 24: Growth of Operating expenses by business lines
Growth of Operating expenses by business lines x% Growth rate X% Cost-income ratio (%) BMET In MAD million Specialised Financial 43.2% 39.7% Subsidiaries In MAD million 39.5% 40.9% +5% +5% 2,133 2,231 424 446 Operating expenses (in MAD million) 43.8% 42.2% June-13 June-14 June-13 June-14 3,984 4 119
Slide 25: Growth of Cost of Risk by business lines
Growth of Cost of Risk by business lines x% Growth rate X% CoR (%) BMET In MAD million Specialised Financial 0.80% 1.23% Subsidiaries In MAD million 1,156 0.89% 0.68% +55% -25% 745 119 89 Cost of risk (in MAD million) 0.74% 1.17% June-13 June-14 June-13 June-14 1,568 972 +61% International Retail Ba
Slide 26: Main contributors to net banking income in 1H 2014
Main contributors to net banking income in 1H 2014 in MAD million Subsidiaries Contribution 1H-2014 Contribution weight Growth Rate Attijariwafa bank 5,299 53.1% 15.0% Wafa Assurance 726 7.3% -21.7% Attijari bank Tunisie 685 6.9% 7.5% Wafasalaf 510 5.1% -3.6% CBAO (Senegal) 471 4.7% 10.9% SIB (Ivory
Slide 27: Main contributors to net income group share in 1H-2014
Main contributors to net income group share in 1H-2014 in MAD million Subsidiaries Contribution 1H-2014 Contribution weight Growth Rate Attijariwafa bank 1,362 60.2% 11.3% Wafa Assurance 284 12.5% -16.7% Attijari bank Tunisie 107 4.7% -3.5% Wafasalaf 86 3.8% 0.6% CDC (Congo) 63 2.8% 31.1% Wafabail 5
Slide 28: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2014 Analysis of the main contributors Attijariwafa bank share price performance Attijariwafa bank – Results at 30 June 2014 28
Slide 29: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-09 to 09-10-14 Base 100 MASI Flottant ATTIJARIWAFA BANK Dec 09 2011 Share price as of 30 June 2014: 190 2010 AWB : -14.0% MAD 304.3 2014 MASI : -12.9% 2012 AWB : +50.7% AWB : -10.6% 165 MASI : +21.2% MASI : -15.1% AWB :+1
Slide 30: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2012 12/31/2013 06/30/2014 Share price 313 305 304.3 Year High 377 345 318 Year Low 304 300 303.3 P/B (*) 2.04x 1.87x 1.84x P/E (*) 14.00x 14.99x 13.70x DY 2.88% 3.11% 3.12% Number of shares 201,243,086 203,527,226 203,527,226 Market capita
Slide 31: Back up
Back up Attijariwafa bank – Results at 30 June 2014 31
Slide 32: Focus on Basel 3 main impacts in Morocco: Capital Adequacy
Focus on Basel 3 main impacts in Morocco Capital Adequacy Minimum requirements Regulatory capital framework in Morocco (Basel 3) Main impacts on Attijariwafa bank Common shares issued by 5,5% the bank 1 Retained earning and Capital Minimum of 8% of CET1 instead of CET1 accumulated other requirements
Slide 33: Focus on leverage ratios and credit risk mitigation
Focus on leverage ratios and credit risk mitigation AWB leverage1 ratio vs. international benchmark 22,8 21,5 20,4 19,8 17,4 14,0 10,2 12,5 8,4 AWB Tier 1 capital is free of hybrid instruments AWB’s leverage ratio is much lower than international benchmark AWB Commerz Socgen Santander RBS BCP Llyods