BANCO COMERCIAL PORTUGUÊS. EARNINGS PRESENTATION 3 rd Quarter 2000

Transcription

1 BANCO COMERCIAL PORTUGUÊS EARNINGS PRESENTATION 3 rd Quarter

2 Banco Comercial Português Highlights as at 30 September Net Income Total Assets Loans to Customers (Net Net.) Total Customers Funds % 59, , , % + 24% + 20% Assets under Management Insurance Premia 19, , % + 16% (Euro Million, annual proforma growth) 2

3 Activity of the BCP Group Financial Highlights Banking, Insurance and Asset Management 3

4 Activity of the BCP Group in Portugal 3rd Quarter Integration of Banco Mello completed Approval of the merger by incorporation of BPSM into BCP Acquisition of a minority stake in ONI 4

5 International activity of the BCP Group 3rd Quarter Agreement to merge BCP insurance subsidiaries (Seguros & Pensões) with Achmea into EUREKO N.V. Acquisition by BCP and Banco Sabadell of controlling stake in Ibersecurities Launching of NovaBank, a jointventure of BCP and Interamerican Hellenic Life Insurance 5

6 Integration of Banco Mello completed Integration of SottoMayor to be completed earlier Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Merger by incorporation into BCP Integration of systems, operations, treasury, admin. and support areas Integration of specialised financial companies Market research and decision on the model of commercial integration Restructuring of commercial platforms Integration of BPSM Integration of the Mello Group 6

7 Integration of SottoMayor and split-merger of BII Approval of the merger by incorporation of BPSM into BCP, each share of BPSM to be exchanged for BCP shares (1) BCP will issue (up to) 16,579,774 new shares as a result of the merger (December ) Approval of the split and merger of BII, incorporating into BCP all assets and liabilities associated with mortgage loans originated through the Group networks (2) BCP will increase its share capital by Euro 33,702,432, the new 33,702,432 shares to be alloted to Banca Intesa Mergers unanimously approved at EGM of BPSM (1) and BCP (1)(2) 7

8 Greece: NovaBank is born 21 September 50% 50% 50% 50% NovaBank, with paid-up capital of 50 billion dracma (Euro 147 million), is the first Greek bank focused on consumer banking 8

9 Successful Strategy Based on Innovation May 94 November 96 November 97 March 00 First bank with a First bank with a Online brokerage public site on the homebanking internet solution ÿ7 Brokerage fee DayTrade May 00 Complete Bank on WAP July 00 Equity Loans Launch of the first direct Bank in Portugal, opened 24 hours a day, 7 days a week, 365 days a year August 00 New brokerage solution on Web 9

10 Strong Commercial Performance in... Strong focus on online brokerage business: the number of new accounts expected to grow 162% YoY Growth strongly pushed by marketing efforts Strong knowledge of client base Innovative products Competitive pricing Time to market New Accounts Focus on Online Brokerage New accounts Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

11 ... Without Jeopardizing Profitability Gross Margin Breakdown Credit 25% Demand Deposits 29% Margin increase based on volume growth despite Other Funds 5% narrowing of spreads 9% growth in Volume Securities under Custody 7% Savings Insurance 3% Mutual Funds 17% Term Deposits 14% and 23% growth in Margin (Dec99 - Jun00*) Gross margin growth of 285% y-y (Aug-Aug) 11

12 Growing Importance of the Internet Impressive growth of number of contacts Explained by strong focus on automated channels Average Daily Contacts per Channel Breakdown of Contacts per Channel % % 90% 19% % % 70% 60% 50% 40% 81% 50% 75% 30% 50% % 10% 25% 0 0% Aug Aug In Bound VRU Homebanking Human Handled Without Human Intervention 12

13 Internet vs Telephone Banking Client Breakdown Breakdown of Product per Client % 65% 100% 80% 27% 53% 44% 40% 30% 27% 27% 20% % 60% % 94% 35% 14% 19% 86% 81% 65% 55% 45% 35% 40% 20% 73% 47% 56% 60% 70% 73% 73% 80% P 2001E 2002E 2003E 0% Clients Stocks Demand Custody Dep. Mutual Funds Assets under Mgmt Savings Insur. Unit Linked Term Dep. Telephone Banking Internet Telephone Homebanking Increase of customer base driven by homebanking customers Homebanking customers are high value customers

14 Activity of the BCP Group Financial Highlights Banking, Insurance and Asset Management 14

15 Profitability Main Indicators 30 Sep 30 Sep Annual 1999* Change Net Income (EUR million) % ROA 0.7% 0.5%.. ROE 25.0% 16.9%.. EPS (.) (EUR) % *Proforma (.) Average number of shares totalling million as at September 1999 and 1,383.5 million as at September 15

16 Group Statement of Income Main Indicators 30 Sep 30 Sep 1999* Net Interest Margin as % of Total interest earning assets 2.6% 2.8% Other income as % of Total income 48.7% 42.2% Operating Costs as % of Total income 56.2% 61.2% *Proforma 16

17 Group Interest Income EUR million NIM* 2.6% 2.6% 2.6% Interest Revenue Interest Expenses Net Interest Margin Q1 00 Q2 00 Q3 00 * As % of average interest earning assets 17

18 Group Non-Interest Income Diversified income stream EUR million 30 Sep 30 Sep 1999* Annual Change Q3 Q2 Q1 Income from securities % of which: eq. accounted subsidiaries % Commissions (net) % Profits from trading activities (net) % Other operating income (net) % Total % *Proforma 18

19 EUR million Net Commission Income Growth in all activities % Sep 1999 (*) 30 Sep *Proforma Asset Management Securities Cards Other Banking Commissions 19

20 Operating Costs Cost to Income Ratio 61.2% 56.2% 12% 11% 32% 34% 54% 55% Depreciation Admin. Costs Staff Costs 30 Sep 1999* 30 Sep EUR million 30 Sep 30 Sep Annual Q3 Q2 Q1 1999* Change Staff Costs % Admin. Costs % Depreciation % Total 1, , % *Proforma 20

21 Loan Growth and Quality EUR million 30 Sep 30 Sep 1999* Annual Change *Proforma Loans to customers (gross) 39,980 32, % Services and Commerce 11,622 8, % as % of Loans 29% 27% Mortgage 8,131 6, % as % of Loans 20% 21% Consumer Credit 4,056 3, % as % of Loans 10% 10% Past due Loans % as % of Loans 1.4% 1.9% Provision coverage 156.5% 125.4% as % of Past due Loans 21

22 Solvency Ratio (BIS) 11.0% 9.1% Tier II Tier I 8.5% 7.3% 31 December September (E) RWA 29, ,453.1 EUR million (E) Estimated 22

23 Activity of the BCP Group Financial Highlights Banking, Insurance and Asset Management 23

24 Banco Comercial Português, S.A. EUR million 27,838 21,601 Global growth prompted by strong and sustained loan demand 12,258 8, September A 1999 A Annual Growth Net interest income % Other operating income (net) % Operating costs % Customer Funds * (1) Loans* Net income % Cash Flow % Sep 1999 Sep * Except SottoMayor (1) Includes balance sheet funds and investment funds 24

25 Banco Pinto & Sotto Mayor EUR million 7,548 8,366 4,900 5,386 Comission income advances on cards and securities businesses Customer funds grow on new savings products push 30 September A 1999 A Annual Change Net Int Income % Net Comm Income % Operating Costs % Customer Funds Loans Sep 1999 Sep (1) Includes balance sheet funds and investment funds Net Income** % Cash Flow % ** Ex-non recurring capital gains 25

26 EUR million Network strong response to cross-selling focus Individual Clients Resources Individual Clients Indebtedness 7,272 7,352 1,651 Other* 1,791 1,267 1,302 5,621 Deposits 5, Jun 30 Sep Other Loans Mortgage Jun 30 Sep * Including investment funds, securities, life insurance and structure bonds 26

27 Seguros & Pensões EUR million Total Premia and Market Share 12 month rolling 16% Integration of operational platforms completed Strong and sustained growth of bancassurance 27% 1,321 ** 30% 1, Sep 30 Sep 1999 Annual Change Life % Non Life % Technical Margin % Net Income (*) % ROE (*) 12.0% 9.4% Investments 5, , % 30 Sep Sep Provisions 5, , % (*)Ex-extraordinary gains (**) Império (8.4%) and S&P (18.5%) 27

28 Seguros & Pensões EUR million Life Premia Non-Life Premia Bancassurance % % Other channels* * Agents, Brokers and Direct Market Share 35.4% Sep 00 Sep 99 Market Share 23.9% 28

29 EUR million Assets under Management and Market Share AF Investimentos Comprehensive offer of investment products, following merger of AF and Mello Activos Financeiros portfolios 29% 37% 30% 30 Sep 30 Sep 1999 Annual Change 15,331 19,709 Commissions (gross) % Operating Costs % Net Income % 30 Sep Sep ROE 73.3% 54.4% 29

30 Exhibit Financial Statements Summary 30

31 Consolidated Statement of Income EUR million 30 Sep 30 Sep 1999* Annual Change Q3 Q2 Q1 Net interest income % Provision for loan losses % Net interest income after provisions % Other operating income (net.) % Operating costs 1, , % Income before taxes % Provision for income taxes % Minority interests % Pre-acquisition profit % Net income % *Proforma 31

32 Group Net Commission Income per activity EUR million 30 Sep 30 Sep 1999* Annual Change Q3 Q2 Q1 Banking % of which: Cards % Securities % Other % Asset Management % Total % Total as % of Total Income 23.4% 21.7% 23.9% 22.9% 23.3% *Proforma 32

33 Asset Growth PTE Million 30 Sep 30 Sep 1999* Var. 30 Jun 30 Mar * Loans to clients 39, , % 38, ,191.4 Securities portfolio 6, , % 6, ,882.0 Investments 2, % 1, ,187.6 Total Assets 59, , % 58, ,992.7 *Proforma 33

34 BANCO COMERCIAL PORTUGUÊS