International Relations: the role of banking in the new economic context. Taiwan November 2014

Transcription

1 International Relations: the role of banking in the new economic context Taiwan November 2014

2 2 Markets

3 Portuguese Market structure and evolution 0.1% High share of SME s: 99,9% Heavy reliance on borrowed funds (> 70%) to finance the activity, in particular for SMEs 99.9% Fall in private internal consumption: around - 7% of GDP, since 2008 Breakdown of government consumption SMEs Large Companies European crisis had a negative impact on trade relations in the Eurozone Export increased since 2010, from 28% to 40% of GDP 3

4 New Markets an imperative Consumption is the economic activity with the greatest impact on economies - in Portugal, accounts for about 66% of GDP High leverage by extraordinary conditions of credit, supported by belief in continued growth of the economy Since Sep 2008, significant drop in lending. (Eg in specialized credit institutions fell by almost 50%) 4

5 5 Challenges of Internationalization

6 Challenge - language and culture Different people with different habits and beliefs Suitability of the product type and the message, including the brand communication Language differences, even when the linguistic origin is the same Agreements and contracts meaning, each term in the contracts - the correct definition of words / expressions used in trading 6

7 Challenge - finding the right partners Adjusted to approach the market and the company structure Supporting institutions that lead us to the right contacts: Embassies, Chambers of Commerce; associations; Investment agencies Companies that are already in the field - the importance of associations with revenue sharing but also risk sharing 7

8 Challenge - financial Deadlines and payment methods Guarantees - Important, particularly in the early trade relations Currency hedging The possibility of having accounts opened in transaction currency - 93% of exporting firms also import Adequacy of hedging - CIF / FOB - the impact that the absence or inappropriate hedging in transporting the goods, you can have the financial responsibilities of the company 8

9 Challenge - of the company itself Structured decision vs appeal decision: Organizational structure of the company Production Communication - Image and Brand Financial - financial autonomy and treasury management 9

10 10 Where does the role of banking begin?

11 Role of banking more than a credit institution Partner in several stages of the process: Choosing the market Identifying supporting contacts Connecting with other companies Driving the expansion process Offering financial solutions 11

12 12 Montepio - partner in supporting the expansion of SME business

13 A different institution 13 CAIXA ECONÓ MICA MONTEPIO GERAL (Banking) MONTEPIO HOLDING, SGPS, SA FINIBANCO ANGOLA MONTEPIO INVESTIMENTO (Investment Bank) FUNDAÇ Ã O MONTEPIO LUSITANIA (Non-Life Insurance Business) LUSITANIA VIDA (Life Insurance Business) FUTURO (Pension Funds Management ) MONTEPIO GESTÃ O DE ATIVOS (Investment Funds Management) RESIDÊNCIAS MONTEPIO The brand MONTEPIO identifies a mutual association (the country s largest), a financial institution among the leaders on the domestic stage, a solid group of companies with services ranging from insurance to the management of residential centres and an example of how the economy can be placed at the service of society. Montepio symbolises a wide range of business operations in the financial field, recognised for its guiding values, the tradition of innovation, good performance, ethical conduct, solidarity, sustainability and modernity. Montepio s young and motivated teams are the starting point for encouraging active citizenship, humanising social protection, creating bonds of solidarity and contributing to the economic and social development of the country, supporting families, businesses and institutions.

14 How we have grown HOW WE HAVE GROWN 1840 Montepio Mutual Association Montepio Group s corporate centre specialized in supplementary pension and welfare solutions, is the largest mutual association in the country and one of Europe s largest 1844 Caixa Econó mica Montepio Geral Bank institution endowed with a retail network that supports all the Montepio Group entities 1986 Lusitania Non-Life Insurance Business. It was the first insurance company to be created after 1974 and the first after the opening up of the banking and insurance sectors to private initiative 1987 Lusitania Vida Life Insurer specialized in individual and group insurance. It provides insurance coverage for death, disability and accidents, retirement protection, savings and investment products 1988 Futuro Company specialized in Pension Funds Management 1991 Montepio Gestão de Ativos It focuses its business on the discretionary management of portfolios and investment funds 1995 Fundação Montepio Registered as an entity of public utility, it plays a key role in the establishment of partnerships for providing support to the Third Sector. Its main aim and object is to provide social welfare 2005 Residências Montepio Company dedicated to the management of residential centres for the elderly and the provision of home support services 2010 Finibanco Holding, SGPS Manages the shareholdings in the companies of the former Finibanco Group, merged with Montepio s Group in Montepio Investimento CEMG Participation units Montepio was listed to Euronext through the admission of 200 millions Participation Units 14

15 15 Caixa Económica Montepio Geral

16 Savings Bank MAIN FACTS Founded in 1844 Annexed to Montepio Mutual Association Provides services to 1.5 million customers (private individuals and businesses) 436 branches in Portugal, 15 branches in Angola (Finibanco Angola, SA) and 6 representatives offices (Europe and North America) More than 4,000 employees Savings bank aimed at raising funds and supplying credit to the private, micro-enterprises, and SME segments and to social economy institutions Private Individuals (units) ,1% Business (units) ,4%

17 Savings Bank OUR POSITION 6th of 36 institutions in the Portuguese banking industry, in terms of volume of net assets Market share (June 2014) - Private individuals & SME Ranking Net Assets (EUR thousand). Deposits: 7,2%. Credit: 7,2% - Real Estate Investment Funds: 9,2% - Securities Investment Funds: 2,8% - Pension Funds: 7,9% Banco CGDA Banco BCPB Banco BESC Banco BPI D SANTANDER Banco E Montepio MONTEPIO Sources: Banco BANIFF Banco de Portugal Associação Portuguesa de Fundos de Investimento, Pensões e Patrimónios 17

18 Savings Bank WHERE YOU CAN FIND US Montepio has increased its presence in Portugal, as well as in the countries that host Portuguese communities and in markets with growth potential for national companies, in order to be closer to its customers. Canada USA UK Germany Switzerland France Angola Mozambique Cape Verde 18

19 Business results BUSINESS ACTIVITY (EUR thousand) 2014 (june) Net Assets 22,363 23,039 20,972 CORPORATE LOANS PORTFOLIO (EUR thousand) Total 7,110 6,643 6,159 CUSTOMER FUNDS (EUR thousand) Total funds (balance sheet) 16,314 16,310 15,171 LEVERAGE AND LIQUIDITY Support the national economy, while keeping sound liquidity and capital levels. Strong growth in corporate loans Sustained growth in customer funds Leverage ratio decreased from 120.5% to 108.0% Core Tier I ratio above 10% Leverage ratio 108.0% 110.2% 120.5% SOLVENCY Core Tier I 10.65% 11.01% 10.62% Solvency ratio 12.17% 13.03% 13.58% 19

20 Caixa Econó mica Montepio Geral Business partner 20

21 Business partner Montepio is a reference for Portuguese corporates supporting their projects through specific financing solutions for corporates and SMEs, both nationally and internationally. More than 11% of Portuguese companies rely on the support and active collaboration of Montepio which, at a time of economic crisis, supports projects, bussinesses and entrepreneurs. Montepio increased its credit operations, in June 2014, year on year, 143,3%, while the growth in this sector stood at 27%. A partner that is increasingly present in the support of the Portuguese business market 21

22 Support to international trade Services provided 1) Advisory - Credit instruments to be used as a means of direct settlement (checks and money orders), use of document-based operations (remittances, guarantees and letter of credit confirmations) depending on the risk involved - Protecting business risks, proposing solutions to hedge currency, interest rate and commodities risk 2) Identification of opportunities and access to Government-backed credit lines - International chambres of commerce, credit lines guaranteed by supranational entities such as the European Bank for Reconstruction and Development, European Investment Bank and credit lines funded by the Government 3) Risk sharing with banks committed to non-conventional markets, in regions such as North Africa, Middle East, non-portuguese speaking Africa 4) Access to a network of correspondents abroad and bilateral clearing and cash letter agreements, ensuring efficiency in collections 22

23 On the World TOP The Banker magazine, a part of the famous publishing house Financial Times and constitutes a reference in the banking sector, in its 2013th edition placed Caixa Económica Montepio Geral, for the first time ever, in the Banker s Top World Banks ranking, holding the position 402. The ranking, considered a standard measure of strength and performance, and it is based on an accurate evaluation of business financial strength, with Core Tier I capital ratio playing an important and vital role. Montepio was the 9 th biggest direct entrant. 23

24 Thank you! Montepio Investimento Alexandra Neves T / M