Investor Presentation on the FY 2014 result

Transcription

1 Investor Presentation on the FY 2014 result

2 2 Azerbaijan: Key Facts General Economy Currency Population: 9.2 m Area: 86,600 km 2 Largest Cities: Baku, Ganja, Sumgayit, Mingachevir, Lenkaran GDP: USD 76 bn GDP per Capita (PPP): USD 13,486 GDP growth: 3% Inflation: 1.4% Currency: Azerbaijani Manat (AZN) 1 USD = AZN stable since 2011 Ratings Moody s: Baa3 / Stable Fitch: BBB-/ Stable S&P: BBB- / Stable Sources: Central Bank of the Republic of Azerbaijan, Data as of January 31, 2014; The Economist Intelligence Unit, Azerbaijan Country Report,2013

3 3 Azerbaijan: Key Facts USD m GDP USD m Foreign Trade Surplus non-oil oil sector USD m Currency Reserves USD m State Oil Fund Total Assets Sources: Central Bank of the Republic of Azerbaijan, Data as of Dec 31, 2014; The Economist Intelligence Unit, Azerbaijan Country Report, 2013; State Oil Fund of the Republic of Azerbaijan

4 4 AccessBank at a Glance Universal Commercial Bank with Focus on Micro and SME Lending Among Top 5 Banks in Azerbaijan; leader in micro and small business lending Strong shareholder structure with triple A rated IFI s owning majority stake Market leader in portfolio quality Highest international credit rating of local commercial banks: Investment Grade BBB- outlook stable by

5 5 Shareholder Structure Credit Rating IDR (S&P) International Finance Corporation (20%) AAA European Bank for Reconstruction and Development (20%) AAA Kreditanstalt fuer Wiederaufbau (20%) AAA Black Sea Trade and Development Bank (20% ) A- Access Microfinance Holding AG (16.53%) LFS Financial Systems GmbH (3.47%)

6 6 International Awards Euromoney quote on AccessBank s award Best Bank in Azerbaijan 2014 In 2013, the SME and microfinance specialist again easily outperformed its rivals, posting an industry-best net profit of $34.7 million up 72% on 2012 and an equally unbeatable return on equity of 28.8%. Growth was also stellar, with total assets increasing by 53.3% to pass the $1 billion mark. The Bank has continued to pursue alternative funding sources, issuing its first local currency AZN-denominated bond in December and raising $60 million in the largest-ever syndicated loan from an Azerbaijani private-sector financial institution in March. (Euromoney, Volume 45, 07/2014) Best Bank in Azerbaijan Euromoney Awards for Excellence Bank of the Year The Banker Best Emerging Market Bank Azerbaijan Global Finance

7 7 Financial Highlights 2014 Total Assets Loan Portfolio Total Equity Net Profit USD 1.3bn USD 1.05bn USD 185m USD 55m CAR* RoE CIR NPL** 24.8% 32.2% 59.3% 0.77 % IFRS Management accounts as of December 31, 2014 * According to Basel Capital Accord 1988 ** Portfolio at Risk >30 days

8 Financial Highlights Total Assets $1.3bn $1.0bn $656m Total Loan Portfolio $1.05bn $800m $525m Total Equity $185m $146m $121m Net Profit $55m $34.6m $20.2m CAR* 24.8% 22.8% 28.2% RoE 32.2% 28.8% 18.6% CIR 59.3% 64.8% 72.4% NPL** 0.77% 0.36% 0.63% IFRS Management accounts including 2012 and 2013 audited results * According to Basel Capital Accord 1988 ** Portfolio at Risk > 30 days 8

9 9 Focus on Micro and SME Lending Loan Portfolio by Segment Amount USD m Clients 9% 4% 44% Micro Portfolio ,501 SME Portfolio 447 2,618 43% Retail Portfolio 95 27,830 Mortgage Loan Portfolio 38 1,052 Micro Loans Retail Loans SME Loans Mortgage Loans Data based on management accounts as of December 31, 2014

10 10 Continuous Dynamic Growth USD m 1400 Total Assets Loan Portfolio

11 11 Top Banks in Azerbaijan* Total Assets (USD m) Loan Portfolio (USD m) Total Equity (USD m) 1 Azerbaijan International Bank (IBA) Kapital Bank Xalq Bank Pasha Bank AccessBank UniBank Bank of Baku Bank Technique AGBank Bank Respublika DemirBank Bank of Azerbaijan Muganbank Expressbank *Ranking by Total Assets Source: Trend Ranking, Data as of October 2014, Exchange Rate USD/AZN:

12 12 Extensive Countrywide Branch Network Branches: 43 Employees: Regional Branches 14 Branches in Baku

13 13 Strategy Market leader in Micro lending Maintaining leading position in SME lending Focus on Regions Focus on Agro lending Expanding Mortgage lending

14 Strong Profitability USD m 70 Pre-Tax Profit 30% Net Interest Margin % 17.8% 19.2% % 17.1% 14.8% % USD m 70 Net Profit 50% RoE % 30% 28.8% 32.2% % 10% 24.3% 18.6% %

15 15 Market Leader in Portfolio Quality 5,00% PaR > 30 days ratio 4,00% 3,00% 2,00% 1,00% 0,00% I 2011 III V VII IX XI I 2012 III V VII IX XI I 2013 III V VII IX XI I 2014 III V VII IX XI Micro SME Total PaR Sector average NPL ratios in Azerbaijan: Micro-loans 5%; SME-loans 10%

16 Strong Shareholder Support Continued reinvestments of profits into Bank equity Organic growth of the Bank s equity solely based on reinvested profits Shareholders current longterm funding to the Bank is about USD 210m USD m Development of Total Equity

17 17 Foreign Currency Lending Risk Mitigants About half of AccessBank s loans are denominated in USD Central Bank pursues policy of stable exchange rate of local AZN vs USD (crawling peg) High foreign trade surplus triggers steadily increasing currency reserves High currency reserves represent strong buffer against potential turbulences on currency market and protect AZN from devaluation in the short to medium term Low level of foreign investment in Azerbaijan protects from volatilities on international capital markets Bank provides USD denominated loans mostly to SME s high average DSCR of around 3x in SME lending represents a strong risk mitigant in case of devaluation

18 18 Funding Profile Customer Deposit Development Diversified Funding Structure USD m 400 USD 98m (9%) USD 449m (41%) USD 317m (30%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Current Accounts Savings Deposits Term Deposits USD 218m (20%) Retail Current Accounts Customer Deposits Borrowings from Commercial Lenders Borrowings from IFI/DFIs

19 19 Conservative Refinancing of Loans Loan portfolio USD 1,047m in 12/2014 USD m < 1 month 1-3 months 3-6 months 6 m-1 yr 1-3 yr 3-5 yr > 5 yr Loans Refinancing Loans with maturities > 1 yr are refinanced according to their tenors Current and savings accounts are displayed as short-term liquidity Liquidity buffer above USD 100m Currency profile of loan book is matched by funding in respective currencies

20 Financial Statements Balance Sheet in USD thousands Assets 31 December December 2013 non-audited audited Cash and cash equivalents Loans to customers Property and equipment Intangible assets Other assets Total assets Liabilities Amounts due to credit institutions Amounts due to customers Debt securities issued Borrowed funds from international lenders Current income tax liabilities Other liabilities Subordinated loan Total liabilities Equity Share capital Retained earnings Total equity Total equity and liabilities

21 Financial Statements Income and Capital Statement in USD thousands 31 December December 2013 non-audited audited Interest income Interest expense (65 917) (43 810) Net interest income Allowance for loan impairment (4 948) Net interest income after allowance for loan impairment Non-interest income Non-interest expense ( ) (81 757) Profit before income tax expense Income tax expense (14 417) (9 123) Profit for the period Tier 1 Capital Tier 2 Capital Total Capital Risk Weighted Assets Tier 1 capital ratio 21,3% 21,2% Total capital ratio 24,8% 22,8% Capital ratios according to Basel Capital Accord

22 22 Contact Dr. Rolf Reichardt TEL: Executive Director Finance/Treasury rolf.reichardt@accessbank.az Farida Pirverdiyeva TEL: International Partner Relations Manager farida.pirverdiyeva@accessbank.az