Ordinary General Shareholders' Meeting

Transcription

1 Ordinary General Shareholders' Meeting 2013

2 Ordinary General Shareholders' Meeting 2013 Chairman Isidro Fainé

3 Economic environment Spanish financial system CaixaBank s 2012 Results 1 st quarter 2013 Results : highlighting the difference

4 Economic environment Economic outlook: Weak but improving 2.2% 1.9% 2.8% -0.5% -0.4% 1.0% -1.4% -1.4% 0.8% 7.8% 8.1% 8.4% United States Euro Zone Spain China Mexico Brazil India Japan 3.9% 3.5% 3.7% 3.4% 6.8% 2.5% 5.1% 5.0% 2.0% 1.9% 0.9% 0.7% Source: Research Department, "la Caixa"

5 Economic environment European Union: From recession to stabilization Annual GDP growth 4 th quarter 2012, % yoy Risk premia Yield spread with the German 10Y bond, basis points -0.4% EU APR 2013 FEBRUARY Italian elections MARCH Cyprus bail-out 800 APRIL Constitutional Court Portugal < 0% 0 0.9% 0.9-3% > 3% e-12 a-12 j-12 o-12 e-13 a-13 Portugal 448 Spain 302 Italy 268 Irleland 250 Source: Eurostat and Bloomberg

6 Economic environment Euro Zone: Towards a genuine economic and monetary union Banking Union Unified banking supervision Unified resolution authority European Deposit Guarantee Fund Fiscal Union Deficit and debt rules Budget coordination Debt mutualisation

7 Economic environment Spain: Imbalances are being reduced External balance % GDP Goods and services balance Current account balance Unit labor cost 120 Comparative index with respect to Euro Zone Private debt Public deficit % GDP Firms 132 Households % GDP; excludes recapitalization costs Source: Eurostat, INE and own computations

8 Economic environment Spain: Outlook GDP evolution Percent change and contributions, in % forecasts External Sector GDP Internal demand Activity estabilizes during second half of 2013 Improved competitiveness boosts exports Employment creation in 2014 Gradual reduction of risk premium Turning point (6-18 months) Source: INE and own forecasts

9 Economic environment Spanish financial system CaixaBank s 2012 Results 1 st quarter 2013 Results : highlighting the difference

10 Spanish financial system Main events in 2012 Clean-up Royal Decrees 2/2012 and 18/2012 Transparency Real Estate exposures Stress tests Refinancings Recapitalization Public (FROB/ ESM) and private Restructuring Sareb Mergers

11 Spanish financial system Clean-up and recapitalization Provisions Million Euros Evolution of Core Capital In percentage 154,000 M 191,508 65,000 M 9.7 > , ,793 37, DEC (estimate) 38,833 Mn Public injection FROB/ESM in Source: Bank of Spain

12 Spanish financial system Profitability under stress Business volume* In billion Euros Interest margin % of average total assets Non-performing loans* In % ,844 1, % 12% 10% ,604 Loans 1.1% 8% 6% ,217 Deposits 1,170 1,147 4% 2% NPLs Coverage DEC % 73.8% % d-07 d-08 d-09 d-10 d-11 d-12 * The transfer of assets to SAREB impacts credits and non-performing loans Source: Bank of Spain

13 Spanish financial system Consolidation and capacity adjustment Number of branches Number of employees Number of institutions* 46,161 38, , , % -15.1% * Includes all banks with assets above 10,000 M in 2008 and all savings banks that have been involved in mergers

14 Spanish financial system 2013 Outlook Deleveraging Loans to private sector over GDP (%) Decrease in volumes continues, but at a slower pace 190% 170% forecast Margins under pressure 150% 130% 110% Still more provisioning efforts 90% long term trend 70% Capacity adjustments completed 50% Source: Bank of Spain; Research Department s forecasts

15 Economic environment Spanish financial system CaixaBank s 2012 Results 1 st quarter 2013 Results : highlighting the difference

16 CaixaBank s 2012 Results Strong increase in business volume Business volume December Million Euros Acquisitions reinforce leadership in retail banking market shares Market share by business volume*. In % CB +19.8% 512, % 5.9% 8.3% 7.8% 37.6% Bank 1 460, % 9.6% 8.4% 7.0% 32.3% Bank 2 400, % 9.1% 11.7% 18.9% Bank 3 247, % 16.5% 9.9% Bank 4 227,124 > 10% share > 7% share < 7% share 1 st Retail banking institution in Spain 26.1% Customer penetration 14.7% Market share by business volume * Market shares at December Includes loans and deposits from CABK+BCIV+BdV

17 CaixaBank s 2012 Results Solid recurrent results Gross income Million Euros Pre-impairment income Million Euros Extraordinary Million Euros 6,511 6,737 3,169 3,171 Individual life-risk +3.5% +0.1% 728 M Gross capital gain DEC-11 DEC-12 DEC-11 DEC branches Great commercial effort and costs control Extraordinary transactions with profits, maintaining the relationship with customers

18 CaixaBank s 2012 Results Huge efforts in provisioning Provisions and write-offs Million Euros Profit attributable to the Group Million Euros 10,299 1,053 4,550 charged against own funds -78.2% 2, ,749 charged against results RD 2/12: -2.4 bn RD 18/12: -1.2 bn Other provisions: -2.1 bn Provisioning Fund DEC ,071 M

19 CaixaBank s 2012 Results Financial strength Core Capital In percentage Liquidity In million Euros Asset quality CB 11,0% 11% 53,092 NPLs Bank 1 Bank % 10.4% 20, % of assets 8.6 % Bank % Sector DEC-2012 Bank 4 Stress test 10.1% % (11.44% pre-sareb) Stress test SEPT adverse scenario Capital buffer 5,720 M

20 CaixaBank s 2012 Results Share price performance and shareholders base Share price performance Includes dividends, in percentage Base 100 at 31/12/2010 Spanish banks* ABR APR /12/ /06/ /12/ /06/ /12/2012 Number of shareholders thousands 750 Price / Book Value (31DEC) x 2 Dividend paid in Dividend yield 2012** 7.9% Vs. 5,4% Spanish banks * Simple mean of the change in share price across Spanish banks, excluding CaixaBank (BTO, BKIA, BKT, BBVA, POP, SAB, SAN) ** Over average share price in Source: Bloomberg.

21 CaixaBank s 2012 Results Shareholders remuneration Payment 2012 SEPT 2012 DEC 2012 MAR Dividend / Share Dividend / Share Dividend / Share JUL 2013* Forecast 0.05 Cash Remuneration Policy 2013* Quarterly scheme SEPT DEC MAR JUN Choose cash or dividend program DIVIDEND/SHARE CaixaBank High total remuneration 0.20 /share 7.2% Yield at current Prices (23 April) Forecasted average yield for Spanish banks in 2013 of 4.4% (KBW forecasts) * The payment in July is against 2013 Results. It is made in cash in order to pay, without excessive delay, new shareholders coming from Banco de Valencia who will join after the exchange in the merger (19 th July). Conditional to the effective merger in July, it should be approved by the Board meeting following the merger.

22 Economic environment Spanish financial system CaixaBank s 2012 Results 1 st quarter 2013 Results : highlighting the difference

23 1 st quarter Results 2012 Quarter marked by the acquisition of Banco de Valencia 27 NOV-12 Contract of sale between FROB and CaixaBank 28 FEB-13 Transaction closing JUL-13 Merger with CaixaBank and technological integration Banco de Valencia branches per region Banco de Valencia market shares Deposits Branches Madrid Barcelona Branches % 5.6% 8.2% 7.0% 3.8% 2.8% 3.5% 7.0% 1 11 > 30 branches > 10 branches Other branches Castellón Valencia Alicante Murcia Figures at December 2012

24 1 st quarter Results 2013 Quarter noted for Banco de Valencia acquisition Business volume % Interest margin % Gross income % Acquisitions contribute to growth Sound operational results Results attributable to the Group After: Milion of euros M Provisioning RDL 18/2012. RDL 18/12 100% done 48 1,049 M Continue booking additional provisions JAN-MAR 2012 JAN-MAR M Extraordinary restructuring costs

25 1 st quarter Results 2013 Maintenance of balance sheet strength Risk management NPL Ratio 9.40 % vs 10.39% sector (JAN) Coverage 75 % vs 71% sector (JAN) Liquidity 61,325 M + 8,200 Mm 1Q13 Better ration than the sector average Core Capital Bis II 10.6 % Target at year-end >11% After: 2,721 M Provisioning and extraordinary charges 977 M Returned in advance to FROB (B. Cívica)

26 Economic environment Spanish financial system CaixaBank s 2012 Results 1 st quarter 2013 Results : highlighting the difference

27 : highlighting the difference Strategic Challenges Banking with businesses Margins Solvency and liquidity Costs Prioritize reputation and quality of service Maintain commercial leadership Reinforcing our business model

28 : highlighting the difference Business model Long run value creation PROFITABILITY Negotiation INNOVATION Anticipation QUALITY Vocation REPUTATION Coherence Action levers Organizational culture Employees Financial strength Branches and technology

29 : highlighting the difference Loyal to our values Leadership "la Caixa Group Trust Social commitment Business model Long run value creation

30 : highlighting the difference la Caixa Group 28.3% 71.7% 100% Shareholders As of April 23 rd 2013

31 : highlighting the difference Welfare Projects la Caixa. Budget Budget 2012 Million Euros Budget 2013 Million Euros % % Social Science and Environment Culture Education and Research Social Science and Environment Culture Education and Research 42,056 activities (2012) M beneficiaries (2012)

32 : highlighting the difference Welfare Projects la Caixa. Main programs Older people 636,911 beneficiaries Housing 8,000 houses Child poverty 204,022 children Research 12 research centres Incorpora 53,133 22,036 contracts companies Education 3,760 1,130,220 grants school children Comprehensive end-of-life care 37,967 patients CaixaForum and CosmoCaixa 3,513,112 visitors

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34 Thank you Ordinary General Shareholders' Meeting 2013

35 Ordinary General Shareholder s Meeting 2013

36 Ordinary General Shareholder s Meeting 2013 Deputy Chairman and CEO Juan María Nin

37 FY Q 2013

38 FY 2012 An eventful year for the Spanish financial sector Economic environment (recession) Provisioning requirements RE developer risk RD 2 & 18/12 100% 1 of RDLs already booked Spanish financial sector Higher European integration (banking union ) Transparency and credibility IMF, Stress-Test Top Down and Bottom up Consolidation MOU Public capital injections Transfer of assets to Sareb Capital surplus under bottomup adverse scenario Outperfomance in asset quality metrics Acquisitons 1. Figures at March 2013

39 FY 2012 Integrations are being executed ahead of schedule 1 st July 2012 accounting integration 2012 Merger registration Operational integration Caja Navarra systems integration CajaSol systems integration Caja Canarias systems integration Caja Burgos systems integration AUG 20 OCT 27 NOV 15 DEC 28 FEB 09 MAR 13 APR JUN JUL Banco Valencia acquisition agreement Closing BdV EGM: approval merger IT integration 1 st January 2013 accounting integration

40 FY 2012 Cost synergies Expected cost synergies Million Euros 191% of target Banco de Valencia Carried out actions along with those announced in 2013, achieve cost synergies Banca Cívica

41 FY 2012 CaixaBank FY 2012 Highlights: Acquisitions complement organic growth Franchise strength Acquisitions complement organic growth and reinforce franchise leadership Capacity to generate income Sustainable income growth in banking business Financial strength Liquidity, solvency and asset quality: key goals for this year

42 Franchise strength: reinforce franchise leadership Capacity to generate income Maintaining financial strength

43 Franchise strength Increase the business volume with market share gains Business volume Million Euros 427, , % YoY Sector -4.7% YoY 14.7% market share by business volume 13.8 million customers 26.1% penetration market share Figures of December 2012, except customers 1Q 2013

44 Franchise strength CaixaBank as a reference in the market Key retail products: share and position Yoy (%) Main banking relationship Payroll deposits Pension deposits 1º 1º 1º 22.2% +5.6% 20.0% +4.2% 19.5% +5.7% 22.2% main banking relationship Saving insurance 1º 19.1% +1.7% Factoring & confirming 1 Pension plans Loans 3º 1º 1º 18.2% 16.9% 15.3% +3.0% +0.8% +4.7% Most extensive network 6,342 branches Deposits 1º 14.2% +4.0% Mutual funds POS billing Credit card turnover 3º 1º 1º 14.0% 23.8% 20.9% +1.8% +2.5% +3.2% A leading multichannel distribution network Foreign trade - Exports 19.8% +2.7% 1. PPIs + PPAs Note: Figures including Banco de Valencia, except Payroll deposits, pension deposits, POS billing and credit card turnover Source: Bank of Spain, INVERCO, ICEA, FRS, Social Security, Traffic Watch (Swift) and AEF (Including BCIV)

45 Franchise strength An intensive commercial activity that increases transaccionality Multi-channel approach. Transactions by distribution channel Million and percentage FY 2007 FY % trough the mobile Automated 34% Branches 15% Cajeros 15% ATMs Automated 30% Branches 9% ATMs 11% 36% Internet and mobile 50% Internet and mobile 3,348 3,723 3,889 4,073 4,214 4,

46 Franchise strength Total customer funds: +19.6% Million Euros 2012 YoY Customer funds on balance sheet Demand deposits Time deposits Retail issuance 238,062 69,204 76,772 14, % 23.0% 20.8% 30.7% Customer funds + 47,365M Deposits + 26,138M Institutional issuance 46, % Insurance 27, % Other funds Off-balance sheet funds Mutual funds 2,886 50,506 20,996 (1.8%) 12.5% 16.1% YoY +19.6% YoY +21.8% Pension plans Other managed resources 1 Total customer funds 17,562 11, , % (5.0%) 19.6% Sector -3.5% Sector 2-2.0% 1. Variation impacted by 750 M conversion of convertible bonds of CABK 2. Source: Bank of Spain

47 Franchise strength Loans: +20.1% Million Euros Loan to individual 119, YoY 27.7% Loans M Residential mortgages 87, % Other Loan to business 31,929 90, % 11.8% YoY +20.1% Non RE businesses Real Estate developers 61,983 26, % 20.3% Sector % Servihabitat and other Public sector Total loans 1,676 13, ,449 (46.4%) 16.6% 20.1% 800,772 operations granted in M growth 1. Source: Bank of Spain

48 Franchise strength: reinforce franchise leadership Capacity to generate income Maintaining financial strength

49 Capacity to generate income Good operating performance despite the difficult environment Million Euros YoY Net interest income 3,872 3, % Net fees Income from investment Gains on financial assets 1, , % 22.8% 32.4% Pre-impairment income: 3,171M (+0.1%) Other operating revenue & expenses Gross income Total operating expenses Pre-impairment income Impairment losses (100) 6,737 (3,566) 3,171 (3,942) 777 6,511 (3,342) 3,169 (2,557) (112.8%) 3.5% * 6.7% 0.1% * 54.2% NII and fee continue to reflect underlying core business strength Demanding provisioning schedule Profit/loss on disposal of asset and other % Pre-tax income (62) 1,159 (105.4%) Taxes 292 (106) Profit attributable to the Group 230 1,053 (78.2%) NOTE: Banca Cívica consolidate from 1 st July 2012 * Gross income, +8.8% and pre-impaiment income, +11.3%, without extraordinary income from insurance operations in 2011

50 Capacity to generate income Solid net interest income despite low interest rates Net interest income Million Euros +22.2% 2011: 3,872M 2010: 3,170M 1,059 1,027 Evolution impacted by: Historically low interest rates Rigorous management of margins and funding sources Banca Cívica incorporation 1Q 2Q 3Q 4Q11 1Q 2Q 3Q 4Q12

51 Capacity to generate income Recurring fee items continue to reflect underlying core business strength Net fees Million Euros 1, % 1,562 Banking service and in balance 2012 YoY 1, % Strong growth in transactional banking Off-balance service Insurance & pension plans % 9.8% Good performance in pension and insurance Mutual funds 150 (4.3%) Net fees 1, %

52 Capacity to generate income Income from investment increases: +22.8% Income from investment Million Euros % 659 Dividends affected by Telefónica dividend cut Income from associates Improved profitability in banking stakes Dividends

53 Capacity to generate income Other operating revenue and expenses collect extraordinary impacts Other operating revenue and expenses Million Euros 777 Desconsolidation of Adeslas: 250M Availability of funds from insurance operations in 2011: 320M 6,737M Gross income +3.5% DGF contribution increase and regulatory change (from 1 per thousand to 2 per thousand): 160M

54 Capacity to generate income Strict cost control but restructuring effort in full sway Total operating Like-for-like basis Million Euros Total operating Total Million Euros (3,125) (3,121) - 0.1% 2012 BCIV recurring exp. Restructuring costs Synergies 2011 Reorganization expenses Adeslas desconsolidation (471) (78) 104 (110) (107) (3,342) ,263 (3,566) + 6.7% 341 Amortization 799 General 2,426 Personnel 3,171M Pre-impairment income +0.1%

55 Capacity to generate income Demanding provisioning schedule Provisions & impairment Impact on PL BCIV Fair Value adjust. Impact on equity 10,299M Total provisioning and impairment RDLs 2 & 18/2012 5,749M 3,636 4,550M Loan book 3,668 Others provisions 2,113 Foreclosed assets 882

56 Capacity to generate income Extraordinaries partially offset heavy provisioning schedule Reinsurance of the insurance portfolio Reinsurance agreement with Berkshire Hathaway covering the individual life-risk portfolio Gross capital gain: 524M Sale & Lease back Sale and lease agreement of 439 branches to Inmobiliaria Carso for 25 years Gross capital gain: 204M Gross capital gain 728M

57 Franchise strength: reinforce franchise leadership Capacity to generate income Maintaining financial strength

58 Maintaining financial strength Asset quality impacted by weak macro trends and franchise integrations Sector 7.84% 8.37% 9.65% 10.71% 11.4%* 8.42% 8.62% NPL outstanding decrease (NPL management implemented across BCIV platform) Gap with the sector increased CaixaBank 4.90% 5.25% 5.58% 20,348 NPL coverage 60%, 142% with mortgage guarantees 20, NPL 9,567 10,151 10,914 Provisions (Million Euros) Coverage (%) Cov.with mortgage guar. (%) 5,745 60% 137% 12,071 60% 142% 4Q11 1Q 2Q 3Q 4Q12 (*) Non including assets transfered Sareb

59 Maintaining financial strength The deterioration of RE developers impacts on NPL ratio NPL ratio by segment Percentage Dec 12 Credit to households House purchase Other Credit to enterprises Other than RE developers RE developers Public sector NPL NPL without RE developers 3.56% 2.80% 5.65% 17.24% 5.96% 44.22% 0.74% 8.62% 3.97% NPL ratio withut RE developers 3.97% Stability in retail book Differential asset quality confirmed by bottom-up Stress-Test

60 Maintaining financial strength Exposure to RE developers continues to decline, 10% in the last quarter Credit to RE developers Million Euros 53% 22,438 21,708 20,713 29,913 12,237 26,992 11,935 Doubful Coverage of problematic assets Specialized management 11 RE developer centers 3,658 3,144 14,018 11,913 4Q11 1Q 2Q 3Q 4Q12 Substandard Perfoming 83% exposure 27% customers

61 Maintaining financial strength Increased coverage of repossessed RE assets Repossessed RE assets Million Euros 4,350 5, coverage From developers 3,806 47% 1,140 1,574 1,975 Finished housing Under construction Land Other RE assets 2, ,254 1,051 34% 54% 61% 38% 45% Coverage Other assets % 4Q11 1Q 2Q 3Q 4Q12 Total (net) 5,088 45%

62 Maintaining financial strength Servihabitat s commercial activity has doubled Internal management information la Caixa Group commerical activity Million Euros, at selling prices Internal management information la Caixa Group and developers Million Euros, at original investment value 3,113 1,582 11,830 units 1,100 Developer sales 20,291 units Sales 1,202 Sales Rentals Rentals Commitments 2012 Sales, at selling prices Sales, at original investment value

63 Maintaining financial strength Liquidity remains a cornerstone of balance sheet strength Reinforcement of liquidity during the year Million Euros Liquidity LtD ratio 53, % 17,462 Balance sheet liquidity 20,948 9,811 11,137 35,630 Unused ECB discount facility 127% Q11 4Q12 Active management to progressively reduce the LtD ratio

64 Maintaining financial strength Leading capital ratios despite Banca Cívica acquisition Solvency Core Capital evolution (BIS II) Percentage 12.5% +168bps Organic -101bps RDL impact +51bps -22bps -252bps Extraordinary Liability management BCIV integration 11.0% Leaders capital ratios Core Capital (BIS II). Figures 31/12/ % Peer % Peer % Peer % Dec 11 Dec 12 Peer % Among the stronger Spanish financial institution Peers: Santander + Banesto, BBVA Spain, Bankia, Sabadell and Popular

65 FY 2012 Acquisition complement organic growth Reinforce market leadership A year of intense activity including through acquisitions: increased market shares Capacity to generate income Income generating capacity with cost containment Important effort in provisions and write-offs Maintaining financial strength Liquidity remains a cornerstone of balance sheet strength Strong solvency position, externally validated Good asset quality, despite the impact from acquisitions

66 1Q 2013

67 1Q 2013 Banco de Valencia accounting integration since 1 st January Million Euros 1Q13 1Q12 YoY Net interest income % Net fees Income from investment Gains on financial assets % 26.9% (42.3%) Inorganic operations impact on results and activity Other operating revenue & expenses Gross income Total operating expenses (63) 1,696 (1,019) 16 1,672 (783) 1.4% 30.1% Total coverage RDL 2 & 18/2012 Extraordinary total operating expenses Pre-impairment income Extraordinary pre-impairment income (759) (82) (23.8%) Restructuration costs registration Impairment losses Profit/loss on disposal of assets and others (1,951) 2,223 (960) % Badwill: 1,777M net Pre-tax income Taxes Profit attrbutable to the Group

68 Thank you Ordinary General Shareholder s Meeting 2013

69 Ordinary General Shareholders' Meeting 2013