Finansbank Overview with 2012 Financial Results

Transcription

1 Finansbank Overview with 2012 Financial Results Investor Relations March 2013

2 Index NBG Group Finansbank overview Financials Macroeconomic indicators 1

3 The NBG Group Corporate information National Bank of Greece, the oldest Greek commercial bank, heads the largest and strongest financial group in Greece The Bank has 516 domestic branches and 1,128 banking units overseas. The Group boasts by far the largest network for the distribution of financial products and services in Greece. Overseas, the NBG Group is active in 12 countries, controls 9 banks and 64 companies (as of Q3 12) The NBG Group is the first Greek financial group to successfully float its stock on the New York Stock Exchange, the world's principal capital market Ratings and shareholder structure Long-term Short-term Financial strength/ Viability Moody s Caa2 NP E S&P CCC C Fitch CCC C f Domestic investors Other 54.4% 16.4% 5.6% Greek pension funds 23.6% International investors 2

4 Index NBG Group Finansbank overview Financials Macroeconomic indicators 3

5 At a glance Ratings and shareholder structure Foreign currency Long-term Short-term Moody s Ba2 NP Fitch BBB- F3 CI BB+ B NBG Group 94.81% International Finance Corp. 5.00% Public 0.19% Corporate information Turkey s 5 th largest private bank with USD 31bn of assets* Highest capital adequacy ratio among peer group private banks at 18.9% Core Tier 1 ratio is at 13.9% (Million) December 31, 2012 Paid-in capital TRY 2,565 (USD 1,439) Shareholders equity TRY 7,325 (USD 4,109) * According to bank only data 4

6 Efficient branch network Comprehensive Turkish network covering 96% of GDP One of the youngest networks: 6.8 years average age Most productive among peers: TRY 39mn retail loans per branch Corporate Commercial Retail Consumer Joint Branch In-store Collection points Free Trade Zone International Mobile Enpara Total Kırklareli Sinop Edirne Zonguldak Tekirdağ Kastamonu Bartın Istanbul Düzce Samsun Rize Çorum Kocaeli Bolu Ordu Trabzon Giresun Çanakkale Bilecik Tokat Yalova Sakarya Sivas Balıkesir Bursa Erzurum Eskişehir Uşak Ankara Erzincan Kütahya Kırıkkale Malatya Elazığ Manisa Nevşehir İzmir Afyon Aksaray Kayseri Diyarbakır Denizli Adıyaman Aydın Niğde K. Maraş Isparta Şanlıurfa Konya Muğla Burdur Osmaniye Mardin Gaziantep Antalya Adana Mersin Hatay Batman Van 5

7 Strong presence in retail products Selected market shares % 14.2% 14.3% Credit Card loans % 10.5% % 7.9% 8.5% 9.1% 8.3% 9.6% 7.9% Number of CC Mortgages % 6.2% 7.1% General purpose loans % 3.9% 4.0% 4.5% 4.2% Total deposits

8 Index NBG Group Finansbank overview Financials Macroeconomic indicators 7

9 2012 financial highlights B/S P&L Total assets grew by 18% to reach TRY 54.4bn Net loans increased 19%, faster than the 15% growth for the sector Market share in general purpose loans continued to rise tapping 7.1% vs. 6.2% in 2011 Market share in credit card loans reached 14.3%, placing Finansbank among top 4 in the sector Customer deposits increased 10% and reached TRY 31.9bn, in line with sector s growth Shareholders equity increased 29%, helping boost the CAR to 18,92% Total amount of TRY Bond issuance reached 4bn in 2012 Net interest income jumped 29% to TRY 2,9bn, while NIM expanded further to 670bps Net fees and commissions income rose 28% and reached TRY 1,029mn, beating the sector s growth by a large margin Operating expenses increased 14% Net income reached TRY 902mn, registering 6% growth in

10 Solid financial performance USD million TRY million USD million TRY million B/S Total assets Securities Loans, net Customer deposits Funds borrowed Shareholders equity 24,232 3,645 16,175 15,206 2,902 2,988 46,199 6,949 30,838 28,989 5,534 5,696 30,518 4,101 20,640 17,881 4,626 4,109 54,402 7,310 36,793 31,874 8,247 7, USD million TRY million USD million TRY million P&L Net interest income Provisions Adjusted NII Net fees and commissions Opex Net Income 1, , , , , , , , , ,912 1,029 1,

11 Loan driven business model with diversified funding Asset structure TRY million Funding structure TRY million 54,401 Due to banks 54,401 1,048 2% Cash and banks* 7,224 13% Customer deposits 31,874 59% Net loans 36,793 68% Securities issued 4,078 7% Wholesale funding 4,266 8% Securities 7,310 13% Other liabilities Subordinated loan 4,180 1,630 8% 3% Fixed and other assets 3,074 6% Shareholders equity 7,325 13% * Including MMS 10

12 Focus on real banking Loans/Assets Net loans (TRY million) 69% 68% 68% 68% 67% 67% 66% 65% 64% ,000 40,000 30,000 20,000 10, % +19% 25, % 4.9% +19% 36,793 30, % 60% 40% 20% 0% % Loans Market share Securities breakdown Securities/Assets (TRY million) Trading AFS 1% 99% Floating Fixed CPI 36.8% 31.1% 32.1% 15,000 10,000 5, % 7, , % 6, , % 7,310 1,309 6, % 15% 10% 5% 0% Securities/ Total Assets FX TRY 11

13 Significant presence in high margin segments % CC + Consumer Loan breakdown Business segmentation (By annual turnover) Corporates > TRY 100mn Commercial companies TRY 10mn-100mn SME TRY 2mn-10mn Micro < TRY 2mn Commercial Corporate Credit Cards SME&Micro Consumer 44% 53% 61% 62% 62% 63% 18% 14% 13% 11% 15% 14% 12% 15% 10% 9% 8% 19% 23% 20% 25% 27% 30% 16% 16% 18% 19% 15% 14% 15% 28% 33% 38% 37% 35% 33% Retail loans General purpose loans make up 40% of retail loans Auto loans Overdrafts General purpose loans 4% 2% 28% 5% 2% 37% 6% 1% 40% Mortgage loan growth slowing in line with the strategy of the Bank Mortgages 66% 56% 53%

14 2.9% High coverage for better risk management NPL provisioning TRY 618mn reserved in general provisions TRY 100mn in general provisions spared for possible loan losses Very limited loan write-off of TRY 6.5mn in 2011 and TRY 5.1mn in 2012 First time NPL sales of TRY 237mn in Sep 11, which lowered the NPL ratio by 0.5% 4,000 3,000 2,000 1, % 78% 73% 87% 78% 85% 2,513 1,758 1, % 80% 60% 40% 20% 0% % % of NPL s provisioned NPL (TRY 000) Private banks coverage ratio Increase in NPLs NPL ratio by segments 25% 20% 15% 10% 5% 0% 20.8% 5.2% 6.3% 7.0% 9.2% 9.4% 15% 10% 5% 0% 6.4% 5.7% 9.4% 8.9% 7.8% 6.7% 2.1% 4.3% 4.2% 1.7% 6.5% 8.9% 6.1% 5.1% 4.4% 4.9% 1.5% 7% 6% 5% 4% 3% 2% 1% 0% Corporate Commercial Credit cards Retail SME Total NPL ratio Q1 12 Q2 12 Q3 12 Q

15 Growing deposit base TRY million By type By segment +35% +35% Demand deposits Time deposits 23,552 2,191 21,361 28,989 2,682 26,307 31,874 3,393 28,481 Corporate deposits Retail deposits 23,552 8,910 14,642 28,989 31,874 9,205 12,726 19,784 19, Loans/Deposits 50,000 40,000 30,000 20,000 10, , % 23,552 30, % 28,989 36, % 31, % 100% 80% 60% 40% 20% 0% Loans Deposits Loans-to- Deposits

16 Strong capital and high liquidity Free funds (TRY million) RWA+Market risk+operational risk Total Tier I and Tier II capital CAR Capital adequacy ratio (TRY million) Free capital* 6,321 4, % 7,034 4, % 9,052 5,659 60,000 50,000 40,000 30,000 20, % 35, % 43, % 46,797 20% 18% 16% 14% 12% 10% 8% Demand deposits 2,191 2,682 3,393 10, ,877 7,399 8,856 6% 4% 2% % 11% 10.8% 10.4% 10% 9.4% 9% 8% 7% Free capital/ Total assets The new Basel II compliance initially helped increase Finansbank s CAR by 110bps Core Tier 1 ratio is 13.9% * Free capital = Shareholders Equity (Subsidiaries + Fixed Assets + Unprovisioned NPL) 15

17 High margins with strong fee income growth Breakdown of interest income NIM evolution (bps) Securities Banks % 0.4% 89.8% Loans Securities Banks 10.2% 0.5% 89.3% Loans Net fee income (TRY million) 801 5% 9% 41% 22% 8% 15% +28% 1,029 4% 7% 42% 22% 9% 16% Non-cash loans Other banking commissions Credit Cards Acquiring Fees Insurance operations Deposit account maintenance fee

18 TRY dominated balance sheet Currency breakdown; Assets Currency breakdown; Cash loans Currency breakdown; Deposits FX 14% 18% 18% FX 14% 16% 13% FX 25% 27% 31% TL 86% 82% 82% TL 86% 84% 87% TL 75% 73% 69% Impact of TRY on asset profitability* 8.2% 6.4% 9.0% Margins on TL loans Margins on FX loans 2.2% 1.7% 1.7% * Margins calculated by the deduction of last months time deposit rate from term-end loan book yield 17

19 Borrowings and issuances Type of borrowing Maturity Outstanding principal Million Tenor Years TRY Bond March 2013 TRY Bond/Swap (USD / TL) March 2013 USD TRY Bond April 2013 TRY TRY Bond May 2013 TRY TRY Bond June 2013 TRY Syndicated Term Loan USD Tranche November 2013 USD Syndicated Term Loan EUR Tranche November 2013 EUR Eurobond May 2016 USD EIB October 2017 EUR 71 7 Eurobond November 2017 USD DPR Securitisation November 2017 USD 75 5 DPR Securitisation November 2017 EUR 10 5 Subordinated Debt from NBG October 2018 USD Subordinated Debt from NBG October 2019 USD EIB November 2019 USD 13 7 Subordinated Debt from NBG December 2019 USD Subordinated Debt from NBG December 2021 USD DPR Securitisation November 2024 EUR Source: Finansbank (March 2013). USD/TL = ; EUR/TL = as of , CBRT 18

20 Index NBG Group Finansbank overview Financials Macroeconomic indicators 19

21 Key macroeconomic data USD/TRY EUR/TRY Central Bank Policy Rate 5.50% 5.75% 5.75% Nominal treasury bill interest rate (eop) 6.16% 7.56% 10.95% PPI 2.45% 4.03% 13.33% CPI 6.16% 9.19% 10.45% Consumer Confidence Index N/A* USD (mn) GDP 808,151** 771, ,188 Exports (Goods) Y-o-Y 152, , ,907 Imports (Goods) Y-o-Y (236,544) (236,145) (240,842) Trade Balance on Goods Y-o-Y (84,008) (87,750) (105,935) Current Account Deficit Y-o-Y 46,935 55,399 75,092 Primary Surplus (TRY mn) Y-t-D 19,625 25,183 24,774 Central Bank FX Reserves 100,320 94,800 78,330 TURKISH BANKING SYSTEM (TRY bn) Assets 1, , ,217.7 Loans to Assets 57.98% 57.74% 56.08% Securities to Assets 19.70% 21.24% 23.40% *Turkstat renewed this index and new series is available only as of January 2012 **As 4Q 2012 GDP growth rate is to be announced yet, this reflects Finansbank's forecast 20

22 Q1 00 Q3 00 Q1 01 Q3 01 Q1 02 Q3 02 Q1 03 Q3 03 Q1 04 Q3 04 Q1 05 Q3 05 Q1 06 Q3 06 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Economic activity GDP growth rates Q rolling growth Quarterly growth GDP growth stands at 2.6% in the first three quarters of 2012 after having expanded by 8.5% in Anticipating a pick-up in economic activity in the final quarter, we see a FY GDP growth of 2.9% which is more conservative than official target at 3.2% On the other hand, we are more bullish regarding growth prospects in 2013, and we see next year s growth rate at 5.3%, above official forecast at 4% 21

23 Debt outlook Debt/GDP (EU Def n, %) Q3 12 Thanks to strong economic growth and commitment to fiscal discipline, gross public debt burden declined from a peak of 77.9% to 39.9% as of end Yet, global economic crisis weighed on debt outlook with gross public debt to GDP ratio beginning to increase in 2008 and ending 2009 at 46.1%. However, this trend has reversed in 2010, and debt burden eased down to 39.4% in 2011 and 36.7% in Q

24 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Sep 12 Dec 12 Feb 13 Inflation outlook CPI (YoY) PPI (YoY) After easing to 3.99% as of end-q1 11 to the lowest level of last four decades, YoY inflation climbed to 10.45% by end-2011 on the back of administrated price hikes and currency weakness. Annual inflation stood at double digits in the first four months of 2012 and hit 11.14% in April, highest level since October 2008, before trending down and easing to 6.16% at the end of 2012 Annual inflation stood above 7% in the first two months of 2013 on the back of the benign course in food prices reversing administrated price hikes. We see year-end inflation at 6.45%, considerably above CBRT s projection at 5.3% 23

25 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Apr-13 Monetary policy Benchmark yield (%) Policy rate (compound, %) As a net lender to the market, CBRT adjusts the amount of liquidity via weekly and monthly repo auctions by using interest rate corridor. During late December early June 2012 period, CBRT implemented additional monetary tightening measures to contain deterioration in pricing behavior and inflation expectations. Yet, as inflation outlook improved and economic activity followed a mild trend, CBRT eased funding conditions through 2H Following Turkey s rating upgrade in November, CBRT cut the policy rate by 25 bps to 5.50% in December and then lowered the whole interest rate corridor by a total of 50 bps in the first two months of 2013 in order to eliminate the appreciation pressures on the currency. These cuts were accompanied by required reserve ratio hikes so as to curb the excessive loan growth. Going forward, we see CBRT s policy stance relying on low short term interest rates and tighter macroprudential measures 24

26 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Mar 13 Credit growth TRY loans Total loans CBRT s policy mix that includes substantial increases in RRRs and regulatory measures from BRSA curbed the rapid pace of growth in loans to 28.2% in Given tighter monetary stance and slowdown in economic activity, we saw further deceleration in loan growth in the first three quarters 2012, although the momentum started to rise in 4Q and brought YoY growth to 18.2% in 2012 CBRT projects a YoY growth rate of 15% in Yet, the current trend in loans signals a much stronger performance which we foresee to continue on the back of the recovery in domestic demand unless CBRT comes forward with more drastic RRR hikes 25

27 Jan 01 Jul 01 Jan 02 Jul 02 Jan 03 Jul 03 Jan 04 Jul 04 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 External balance 10, ,000-20,000-30,000-40,000-50,000-60,000-70,000-80,000-90, , ,000 CA balance Trade balance As Turkish economy recovered vigorously from the crisis, external deficit started to widen. CA deficit reached 6.4% and 10% of GDP in 2010 and 2011, respectively CA deficit / GDP narrowed to 5.8% in 2012 thanks to the rebalancing in the economy and strong gold exports which was temporary and is not likely to maintain its positive contribution in Moreover, given the accelerating domestic demand which has already started to weigh in on import bill, we see 2013 CA deficit/gdp ratio widening to 7.2% 26

28 Disclaimer Finansbank A.Ş. (the Bank ) has prepared this Presentation for the sole purposes of providing information which include forward looking projections and statements relating to the Bank (the Information ). No representation or warranty is made by the Bank for the accuracy or completeness of the Information contained herein. The Information is subject to change without any notice. Neither the Presentation nor the Information can construe any investment advise, or an offer to buy or sell the Bank s shares. This Presentation and/or the Information cannot be copied, disclosed or distributed to any person other than the person to whom the Presentation and/or Information delivered or sent by the Bank or who required a copy of the same from the Bank. Finansbank A.Ş. expressly disclaims any and all liability for any statements including any forward looking projections and statements, expressed, implied, contained herein, or for any omissions from Information or any other written or oral communication transmitted or made available 27