DRAFT. Attica Bank. Financial Results Q Together we are stronger.

Transcription

1 DRAFT Attica Bank Financial Results Q Together we are stronger

2 Table of Contents HIGHLIGHTS ASSET QUALITY FUNDING CAPITAL APPENDIX 2

3 Highlights 3

4 Performance Highlights Capital 1 2 Own Equity: 638 mln Common Equity Tier I ratio (CET 1): 15% amounts in ( mln) Change % Gross Loans * 2, ,984.6 (33.4%) Loan Loss Reserves (LLR) * (463.9) (1,207.7) (61.6%) Profitability Deposits 1, ,892.8 (3.0%) Pre Provision Income (PPI): mln Personnel Expenses: (16.6%) y-o-y Cost to Income ratio: 38.3% Total Operating Income: 73.6% y-o-y Total Assets * 3, ,611.1 (1.4%) amounts in ( mln) Change % Net Interest Income (9.6%) Net Fee and Commission Income % Other Income (0.8) 1.8 (143.4%) Balance Sheet Highlights Total Operating Income * % LLRs / Gross Loans: 17.5% (post transaction) NPE ratio at 43.2% versus 44.6% for the rest of the Banks (source BoG) NPE Cash Coverage Ratio: 40.4% Personnel Expenses (16.6%) Total Operating Expenses (excluding provisions for operational risks) (11.5) Credit risk charges Profit / (loss) after taxes 7.5 (15.5) Data on a consolidated basis * Following the securitization of NPLs in August 2017, a gross amount of 1.3 bn has been derecognized. The respective derecognized LLRs amount to mln. Furthermore, the Bank has recorded a profit of 70 mln from the sale of the Junior Note. For more details please refer to p.13.

5 Strengthening Distribution Channels Number of customers Q Q E-Banking Users Q Q , , ,295 38,442 39,847 44, Q FY 2016 Q Corporates Individuals Total Customers Q FY 2016 Q Corporates Individuals Total E-banking Users Evolution of POS Q Q Evolution of Debit Cards Q Q % % Q FY 2016 Q Q FY 2016 Q

6 Asset Quality 6

7 Loan Portfolio Overview Comments On August 2017 Attica Bank completed the securitization of 1.3 bn of non - performing loans ( Thea Artemis ). As a result, gross loans amount to 2.7 bn. as at 30 September Almost 77% of total portfolio consist of loans to businesses. 16.4% relates to mortgage loans and the remaining 6.6% in other retail loans. LLRs as at 30 September 2017 stood at 17.5% of gross loans, amounting to 0.5 bn. Gross Loans (Total as at : 2.7 bn.) Gross Loans ( mn) and LLRs/Gross Loans (%) Consumer 6,6% 29,8% 30,3% Mortgage 16,9% Large Corporate 32,5% 17,5% 4.024, , ,3 SBLs 15,1% SMEs 28,9% Q FY 2016 Q Gross Loans LLRs / Gross Loans (%) 7

8 The Bank is focused on corporate lending Loans before provisions by type of product (Total as at : 2.7 bn) State 1,2% Leasing 5,3% Loans to Individuals 23,0% Loans to Businesses by Sector (Total as at : 1.9 bn Loans to Corporates 70,5% Agriculture 0,3% Trade 16,0% Loans to Individuals by Type (Total as at : EUR 0.6 bn Other 0,7% Credit Cards 5,5% Other 35,3% Industry 10,0% Manufacturing 1,2% Consumer Loans 22,6% Tourism 10,0% Shipping 1,7% Construction 25,4% Mortgages 71,2% 8

9 New NPE formation slowed down significantly (c.20%) during the 3rd quarter of 2017 LLRs ( m) and NPE ratio (%) Stock of NPEs ( m) and NPE Cash Coverage (%) 58,9% 60,8% 50,5% 49,9% 43,2% 40,4% 1.198, , , ,9 463, ,1 Q FY 2016 Q Q FY 2016 Q LLRs NPE Ratio NPEs NPEs Cash Coverage The financial figures above include the effect of the securitization transaction which was completed on August 7th New NPE formation is calculated for comparable loans as at and

10 NPEs of SMEs and SBLs account for 65.3% of total NPEs Breakdown of NPEs by type, Concentration of NPEs Mortgages 11,2% Consumer Credit 9,0% Large Corporates 14,6% ,9% 83,7% 92,6% 98,6% 99,2% 99,6% 99,8% 100,0% 100,0% % 80% SMEs 37,1% ,2% % 40% SBLs 28,2% % % % of total NPES (cumulative balances) No. customers (cumulative) The financial figures above include the effect of the securitization transaction which was completed on August 7th

11 90dpd bridge to NPEs Forbearance for Performing Loans & NPEs, ,00 60% 1200,00 375,8 57, ,1 50% 1000,00 800,00 200,4 40% 30% PE 50,5% NPF 14,2% 600,00 514,2 20% NPL 400,00 19,4% 200,00,00 NPL Denounced NPF UTP NPE 10% 00% Other PF Categories 6,3% 9,7% Performing NPEs The financial figures above include the effect of the securitization transaction which was completed on August 7th

12 Total NPEs Coverage at 98% on top personal and corporate guarantees Evolution of NPE Portfolio collateral and cash coverage FY 2016 Q NPE 2, ,148.1 Collateral Value / NPE 50.6% 58.0% Cash Coverage / NPE 49.9% 40.4% Net Exposure 100.5% 98.4% The financial figures above include the effect of the securitization transaction which was completed on August 7th

13 A ground-breaking solution to NPE management Attica Bank S.A. Bond Issuance/Securitization Senior Notes 525 million Junior Notes 806 million Non-performing Loan Portfolio 1.3 Billion Artemis Securitization (Special Purpose Vehicle) 806 million Junior Notes Payment of: 70 million for Junior Notes 80,000 for Thea Artemis stake Servicing of Loans Payment of Servicing Fees Artemis Finance S.ar.l. 80% of Thea Artemis Shares Thea Artemis (Asset Management Company) On May 15 th 2017 the General Meeting of Shareholders of the Attica Bank finalized the terms of a transaction involving the securitization of denounced loans in co-operation with an international investor (Aldridge) The Bank has established an NPL Asset Management Company (Thea Artemis), in accordance with the provisions of the respective Greek legislation (Law 4354/2015). In July the Bank proceeded with the securitization and the transfer of the 1.3 billion non-performing loan portfolio to Artemis Securitization, a special purpose vehicle (SPV). The SPV issued the following two bonds: o o A Series A Bond with face value of EUR million (Senior Note) A Series B Bond with face value of EUR million (Junior Note) The SPV signed a 10-year Service Level Agreement (SLA) with Thea Artemis. The investor has acquired 80% of Thea Artemis by paying an amount equal to the nominal value of its participation in the total equity required for the AMC. The Bank sold the Junior Note to the Investor recording a gain of 70 million euros and covering the remaining amount of the adverse scenario of the 2015 stress test. At the same time, the Bank retained the right to collect by priority any amount from the management of the loans of the senior bond which has a nominal value of million euros. 13

14 Funding 14

15 Funding and Liquidity Comments In the third quarter of 2017, the Bank s deposits balances were reduced by approximately 3%. As at September 30th 2017, deposits stood at approximately 1.84 bn. Deposit balances have improved further since in the third quarter of Net loans to Deposits ratio (%) Deposits Balances ( m) 150,7% 146,7% 119,3% Q FY 2016 Q

16 Evolution of Deposits Core deposits (sight and savings) account for 47.4% of total deposits as the 52.6% represents the time deposits of the Bank. The Bank s deposits are generated mostly from retail clients (~62%). The remaining balance is divided into corporate clients and clients from the public sector. Breakdown of deposits by type of product (Total as at : ~ 1.8 bn) Breakdown of deposits by type of customer (Total as at : ~ 1.8 bn) Other 0,5% Current accounts 25,9% Public Sector 21,9% Other 4,2% Time Deposits 52,6% (77.5%) (75.5%) (77.5%) (75.5%) Savings accounts 21,0% (68.6%) Corporates 11,7% (63.9%) (63.2%) (61.3%) Individuals 62,2% (25.7%) (58.4%) 16

17 bps bps In the third quarter of 2017 deposit costs have remained rather stable Cost of Deposits: Total Deposits (stock) Cost of deposits: Term deposits (stock) Nov-16 Mar-17 Jul-17 Nov Nov-16 Feb-17 May-17 Aug-17 Nov-17 17

18 1,0 2,3 2,2 3,8 3,2 4,2 7,5 8,4 7,8 Eurosystem Funding Comments Eurosystem funding ( bn) As at , Eurosystem funding amounted to 960 million. Eurosystem funding as a percentage of total assets reached 27%. Evolution of Eurosystem funding (% of total assets) Q Q Euro funding/ Total assets (%) ,6% 28,1% 27,0% Q FY 2016 Q Peer 1 Peer 2 Peer 3 Peer 4 ECB ELA Source: Figures at Group level as reported in banks presentations. 18

19 Capital 19

20 Capital position CET 1 Formation, Risk Weighted Assets ( m) ,0% 3,537 3,471 3,498 (39 bps) (288 bps) 11,8% Q2017 CET1 Transitional adjustments phase out Preference shares Fully loaded 3Q17 CET1 Q FY 2016 Q Credit Risk Market Risk Operational Risk The financial figures above include the effect of the securitization transaction which was completed on August 7th The Group s CET ratio stood at 15.0% as at (11.8% on a fully loaded basis). CET1 ratio will be restored following the S.C.I. 20

21 Appendix 21

22 Group P&L and balance sheet Amounts in m Q FY 2016 Change % ASSETS Cash and balances with central bank (12.3%) Due from other financial institutions (64.1%) Derivative financial instruments - assets % Financial instruments at fair value through P&L % Net loans and advances to customers 2, ,777.0 (21.1%) Financial assets available for sale % Investments held to maturity (2.2%) Investments in associates (31.3%) Property, plant & equipment (3.2%) Investment property % Intangible assets % Deferred tax assets (0.8%) Other assets % Total assets 3, ,611.1 (1.4%) LIABILITIES Due to financial institutions ,025.3 (3.7%) Due to customers 1, ,892.8 (3.0%) Derivative Financial Instruments (78.5%) Defined benefit obligations % Other provisions % Deferred tax liabilities % Other liabilities % Total liabilities 2, ,977.2 (1.9%) EQUITY Share capital (common Shares) Share capital (preference Shares) Reserves (0.7%) Retained earnings (407.7) (415.4) (1.9%) Equity attributable to parent owners % Non controlling interests Total equity % TOTAL LIABILITIES & EQUITY 3, ,611.1 (1.4%) Amounts in m Q Q Change % Interest and similar income (9.7%) Less: Interest expense and similar charges (38.3) (42.5) (10.0%) Net interest income (9.6%) Fee and commission income % Less: Fee and commission expense (6.6) (2.9) 130.0% Net fee & commission income % Profit / (loss) from trading portfolio (70.2%) Profit / (loss) from investment portfolio Other Income (0.8) 1.8 (143.2%) Total Operating income % Personnel expenses (27.4) (32.8) (16.6%) General operating expenses (31.3) (30.1) 3.9% Depreciation (4.8) (4.3) 11.5% Provisions for credit risks (62.7) (30.1) 108.3% Total operating expenses (126.1) (97.3) 29.6% Income from investment in associates (0.9) (2.0) (55.7%) Profit / loss before taxes 12.2 (19.1) - Less: Income tax (4.8) Profit / loss for the period 7.4 (15.5) - 22

23 Group results by segment Q Q Total Amounts in m Retail Business Banking Investment Banking & Treasury Retail Business Banking Investment Banking & Treasury Q Q Change % Operating Income % - Net interest income (1.8) 66.0 (4.8) (1.3) 74.6 (7.6) (9.6%) - Net fee and commission income - Income from trading & other income - Adjustment between segments Income from investments in associates (1.8) % % 3.2 (11.4) (13.0) (0.2) (0.6) (0.2) (0.4) (1.6) (0.1) (0.9) (2.0) (55.8%) Profit / (loss) before taxes (13.3) (23.2) (19.1) (163.8%) Taxes (4.8) 3.6 (231.7%) Profit / (loss) after taxes 7.4 (15.5) (148.0%) Provisions for credit risks and securities impairment (17.2) (45.5) 0.0 (16.4) (13.6) (0.1) (62.7) (30.1) 108.3% Depreciation (0.9) (2.9) (1.0) (0.8) (3.4) (0.1) (4.8) (4.3) 11.4% Total Assets , , , , ,712.4 (4.1%) Total Liabilities (1,820.1) (1,100.1) (0.1) (1,948.9) (1,099.8) 0.0 (2,920.2) (3,048.7) (4.2%) 23

24 Key financial ratios, Q Q BALANCE SHEET STRUCTURE Q FY 2016 Q Due to Customers / Loans and Advances to customers (after provisions) 83.8% 68.2% 66.3% Due to customers / Total Assets 51.6% 52.4% 50.5% Loans and Advances to customers (after provisions) / Total Assets 61.6% 76.9% 76.1% Total Equity / Total Assets 17.9% 17.6% 17.9% Total Equity / Due to Customers 34.8% 33.5% 35.4% EFFICIENCY Profit before taxes / Average Equity (RoAE) 2.6% (6.4%) (11.4%) Profit before taxes / Average Total Assets (RoAA) 0.5% (1.2%) (2.1%) Total Operating Expenses less provisions for credit risks / Total Assets 2.4% 3.0% 3.8% NPE Ratio 43.2% 60.8% 58.9% Provisions / NPEs 40.4% 49.9% 50.5% CAPITAL CET I Ratio 15.0% 14.8% 15.2% Total Capital Adequacy Ratio 15.0% 14.8% 15.2% 24

25 By receiving this document, the Recipient accepts and agrees to be bound by the following obligations and limitations: The above material has been prepared by Attica Bank for the exclusive use of the selected parties to whom it is delivered. Neither the whole ore any part of the information in this presentation may be disclosed to or used by any other person or used for any other purpose without the prior consent of Attica Bank. Neither Attica Bank nor any of its connected persons accept any liability or responsibility for the accuracy or completeness of. nor make any representation or warranty, express or implied, with respect to the information on which this material is based or that this information remains unchanged after the issue of this presentation. In addition, the reader of the material agrees that Attica Bank and all connected persons neither owe nor accept any duty or responsibility to the former, whether in contract or in tort (including without limitation, negligence and breach of statutory duty), and shall not be liable in respect of any loss, damage or expense of whatsoever nature which is caused by any use the reader may choose to make of this material, or which is otherwise consequent upon the gaining of access to the report by the reader. The content of this material should not be construed as a solicitation or a recommendation. It has been prepared for information purposes only and is purely indicative. It does not constitute an offer or invitation for sale or purchase of securities or any of the businesses or assets described herein or any form of commitment, advice, recommendation or valuation opinion on the part of Attica Bank or its connected persons. No part of this material should form basis of or can be relied upon in connection with any contract or investment decision or commitment relating thereto. This material should not be regarded by the Recipient as a substitute for the exercise of its own judgment and the Recipient is expected to rely on its own due diligence if it wishes to proceed further. Additionally, the Recipient should not construe the contents of this material as legal, tax, accounting or investment advice. The Recipient should consult its own independent counsel, tax and financial advisers as to financial, tax legal and related matters concerning any transaction described herein. This material does not purport to be all-inclusive or to contain all of the information that the Recipient may require or request. The present material may contain targets, prospects, returns and/or opinions which obviously involve elements of subjective judgment. Any opinions expressed in this material are subject to change without notice. Forward looking statements may also be contained. Attica Bank gives no undertaking and is under no obligation to update these targets, prospects or potential statements for events or circumstances that occur subsequent to the date of this material or to update or keep current any of the information contained herein and this material and there exists no representation that it will do so. Actual results will vary from the projections or targets mentioned and such variations may be material. In this notice Attica Bank means Attica Bank S.A. and its connected persons means the shareholders, subsidiaries and the respective directors, officers, employees and agents of each of them. ATTICA BANK S.A. Contact Information: Strategy and Financial Planning Department 23 Omirou Str Athens. Greece InvestorRelations@atticabank.gr Tel.: