Results Presentation FY January 2017

Transcription

1 Results Presentation 0 FY January 2017

2 Bankinter presents its financial statements in accordance with the regulatory framework applicated to the Group, which is that established in the Code of Commerce and other company law and in the International Financial Reporting Standards adopted by the European Union, and taking in consideration Circular 4/2004 of the Banco de España. Bankinter cautions that this presentation contains forward looking statements. Such forward looking statements are found in various places throughout this document and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment and future expectations regarding the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to (1) general market, macro-economic, governmental and new regulations, (2) variation in local and international securities markets, currency exchange rates and interest rates as well as change to market and operational risk, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and other counterparties. 2

3 Summary FY2016 Key financial indicators Dif. / Var. Net Income 490,1M 375,9M 30,4% Gross Op. Margin 1.717,4M 1.568,8M 9,5% Cost to income (banking activity) 45,1% 43,7% 1,5 pp NPL ratio 4,01% 4,13% -11pbs Cost of risk 227,8M 262,2M -13,1% ROE adjusted 10,9% 10,9% - CET1 FL 11,2% 11,6% -40 pbs Loan to Deposits 110,6% 119,8% -9,2 pp 3

4 Record level of recurrent results Annual Net Income ( millions) 490,1** 361,9* 252,3 254,4 250,7 150,7 181,2 189,9 124,7 275,9 375,9 426,5 +36% CAGR on recurrent net income 12 to * Includes sale of 50% BK Vida ** Includes Portugal badwill 4

5 Agenda 1.Results 2.Risk management 3.Businesses 5

6 1.- Results 6 6

7 P&L account FY2016 P&L annual account ( millions) Bankinter group 2016 Dif. % 16/15 ex-portugal* 2016 Dif. % 16/15 Net Interest Income 979,0 12,6% 913,8 5,1% Net Fee Income 379,1 6,1% 354,1-0,9% Other Income/ Expenses 287,8 6,4% 286,9 6,1% Trading Income 71,4-0,3% 71,5-0,3% Gross Operating Income 1.717,4 9,5% 1.626,2 3,7% Operating Expenses -902,2 18,6% -784,8 3,1% Pre Provision Profit 815,1 0,9% 841,4 4,2% Other Provisions -38,6 52,9% -39,2 55,3% Cost of Risk -227,8-13,1% -213,3-18,6% Extraordinary Results 128,0 n.a. n.a. n.a. Profit Before Tax 676,7 30,1% 588,8 13,2% Net Income 490,1 30,4% 426,5 13,4% * Excluding Portugal and integration and special projects expenses 7

8 Loan book and retail funding trends Loan book annual evolution ( bn) Retail deposits annual evolution ( bn) Sector Sector -3,1% +2,8% + 2,6bn o/2015 organically 51,3 4,6 + 5,8bn o/2015 organically 44,1 3,7 40,5 46,8 34,6 44,2 42,6 42,1 41,2 42,4 +5,9% ex - Portugal 22,7 25,1 28,3 30,3 +16,9% ex - Portugal Bankinter Portugal Bankinter Portugal 8

9 Net interest income evolution Annual net interest income ( millions ) Quarterly net interest income ( millions ) +20,3% 542,7 2,01% 755,4 660,3 635,9 1,11% 0,54% 0,48% 869,5 979,0 65,2 913,8 +5,1% Ex-Portugal 221,3 220,1 243,5 18,7 224,8 249,2 17,2 266,2 29,3 232,0 236,9 +2,1% qoq ex-portugal 0,17% -0,03% 4Q15 1Q16 2Q16 3Q16 4Q16 Average annual Euribor 12M Bankinter Portugal 9

10 Net interest income evolution Annual client margin and breakdown (in %) Quarterly client margin and breakdown (in %) 2,96 2,21 3,06 2,27 2,70 1,97 2,66 2,35 2,08 2,19 2,13 2,10 2,00 1,70 1,69 1,71 1,71 2,10 1,85 1,43 1,67 1,74 1,23 0,75 0,79 0,73 0,68 0,34 0,50 0,45 0,39 0,29 0,25 0,09-0,01-0,02-0,05 --0,07 4Q15 1Q16 2Q16 3Q16 4Q16 Credit yield Cost of liabilities Client margin Credit yields Client margin Cost of liabilities Average Euribor 12M 10

11 Net interest income ALCO portfolio Breakdown of ALCO portfolio ALCO portfolio maturities ( bn) ALCO portfolio HTM AFS Credit TOTAL Nominal amount ( bn) 1,9 2,8 0,2 4,9 3,2 Duration (years) 5,4 1,9 1,5 3,3 Average maturity (years) 6,5 8,7 2,7 7,6 Yield (%) 4,5 2,3 1,1 3,1 Unrealised gains ( bn) 0,4 0,1 n.r. 0,5 Breakdown by asset type ( bn & % o/total) 0,1 0,3 0,7 0,3 0,1 0,2 1,2 24% >2023 0,3 6% 3,4 69% Spanish Sovereign Other Sovereign Other 11

12 Other Income breakdown Annual evolution of other income ( millions): Breakdown other income ( millions): 496,4 484,9 +34,3% 549,0 600,8 627,7 666,9 39% o/total income Bankinter group % Dif. Net fee income 379,1 357,3 6,1% Insurance technical margin LDA 325,2 314,5 3,4% Other income/expenses -37,4-44,1-15,2% o.w. regulatory charges -64,6-52,3 23,4% Other Income 666,9 627,7 6,2% 12

13 Net fee Income Net fee income evolution ( millions) 379,1 22% o/total income 25,0 38,2 40,6 47,5 49,0-0,9% o/2015 ex-portugal 32,5 36,3 198,9 203,8 249,0 291,4 309,9 305,1 Fees Client FX differences Bankinter Portugal 13

14 Net fee Income breakdown Breakdown of net fees ( millions) Quarterly evolution of net fee income ( millions) Grupo Bankinter Dif. Dif. % 18,6% Asset management 129,2 127,4 1,8 1,4% Payments & collections 81,5 64,4 17,1 26,6% Brokerage 67,7 67,0 0,7 1,1% Fees on contingent risks 61,0 63,9-2,9-4,6% Life insurance 54,3 45,0 9,3 20,6% FX Differences 49,0 47,5 1,5 3,2% 88,6 11,6 95,0 93,8 85,2 8,1 8,4 11,8 12,0 11,8 105,1 8,5 13,4 +9,1% ex-portugal o/4q15 Other 28,2 22,5 5,7 25,5% Fees received 470,8 437,6 33,2 7,6% Fees paid 91,7 80,3 11,5 14,3% 76,9 73,3 74,9 73,7 83,2 Net fees 379,1 357,3 21,8 6,1% 4Q15 1Q16 2Q16 3Q16 4Q16 Bankinter Portugal Client FX differences Fees 14

15 Gross operating Income Gross operating income evolution ( millions) ,5% o/ ,9% client business o/ ,2% trading gains o/total op. income Bankinter Portugal Trading gains Gross op. Income ex-trading 15

16 Costs & Expenses evolution and breakdown Evolution of total operating expenses ( millions) Cost to income for the banking activity (%) 22,2 22,2 22,2 169,6 187,3 193,6 464,0 453,1 455,4 22,2 205,0 492,1 22,2 46,5 69,9 22,2 210,9 222,1 527,9 541,6 +5,3% +2,6% 54,5 46,6 45,2 44,5 43,7 45,1 2,3 42,9 Integration & strategic costs Bankinter Portugal Intang. Amortization Linea Directa Banking activity Bankinter Portugal 16

17 0,02 0,02 0,01 0,01 - Cost of Risk Cost of risk * ( millions and in % o/ total risk exposure) 434,9 383,8-13,1% o/ ,2 0,94 295,2 262,2 227,8 0,40 0,83 0,62 0,52 0,39 *CoR includes impairments & results on sale of RE assets 17

18 Profitability ROE (in %) 10,9 10,9 8,3 6,2 5,9 4,0 18

19 2.- Risk Management 19 19

20 Credit risk management NPL s Evolution of NPL balances ( bn) -8,7% ex.-portugal NPL ratio (%) -11pbs o/2015 2,30 4,98 0,44 4,28 4,72 4,13 4,01 1,98 2,28 2,23 2,04 1,86 3,24 3,56 ex-portugal 1,52 20

21 Credit risk management Provision coverage 49% vs 42% 2015 NPL coverage 42% vs 40% 2015 Foreclosed asset coverage 48% vs 42% 2015 NPA coverage 21

22 Credit risk management Foreclosed assets portfolio Breakdown by asset type ( millions & % o/total) 523,5mill. Foreclosed assets -59M o/2015 in Spain % % % Foreclose asset sales ( millions) Book value 219,4 260,6 Sale price 135,5 139,6 Sales result -0,8-26,9 Average discount -38,3% -46,4% Residential Land Commercial 22 22

23 Solvency Capital ratios CET1 phased- in ratio (in %) Capital requirements published by the SREP comparison for 2017 for Spanish listed banks (in %) 10,0 10,9 10,9 11,1 11,3 11,4 11,4 11,8 6,5 7,4 7,4 7,6 7,8 7,9 7,9 8,3 10,2 12,0 11,9 11,8 11,8 7,3 BKT B1 B2 B3 B4 B5 B6 B7 SREP CET1 req. SREP Total Capital 23

24 Solvency CET1 evolution Breakdown of CET1 ratio evolution (in %): 0,94 11,77 11,77-1,31 0,37 11,2% CET1 Fully Loaded 5,3% Leverage ratio FL Dec Retained earnings RWA's Other (incl. AT1) Dec

25 Liquidity management Funding Liquidity gap ( bn) Loan to deposits ratio (in %) - 3,1bn Liquidity gap in ,2 149,5 130,7-9,2 p.p. 19,4 16,2 12,0 10,5 8,5 5,4 0,6 4,8 127,7 119,8 110,6-1 Bankinter Portugal Bankinter Portugal 25

26 Liquidity management Wholesale funding maturities & liquid assets M/T wholesale funding maturities ( bn) and cost (in %) 10,0 bn 1,0 0,8 0,8 Liquid assets 6,7 bn Covered bond issuance capacity Wholesale funding outstanding by year ( bn) 2,83 1,71 2,06 Outstanding balances Spreads 14,7 9,8 8,2 6,8 7,8 6,3 mar

27 3.- Businesses 27 27

28 Contribution to Total Income by business Breakdown contribution to total income by line of business(in %) 31% 27% 21% 7% 5% 9% Corporate banking Commercial banking LDA Consumer fnance Bankinter Portugal No client related 28

29 Corporate/ SME banking Lending volumes Enterprises loan book ( bn) 21,7 0,7 15,3 16,9 17,7 18,6 19,7 21,0 +6,7% o/2015 ex-portugal vs. industry -5% 5,5% Market share on new production Bankinter Portugal 29

30 Corporate/ SME banking Collateral business Transactional business evolution ( bn) 33,2 +18% o/ ,6 43,7 +27% Gross margin Internat. business vs % Social security payments vs +4% sector 29,5 +6% Direct Debit vs. -2% sector Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec +34% Money transfers vs. -6% sector

31 Retail banking Business volumes Total Payroll accounts ( millions) New mortgage production ( millions) Industry +8% ,1% ,7%

32 Private Banking Managed assets Customers assets in Private Bkg. ( bn) 14,3 18,3 23,1 27,9 31,2 +11,4% o/2015 Net new money ,5 bn 15,9 18,1 x 1,8 o/ ,3 10,1 12,7 4,2 5,6 8,8 12,1 13,1 x 3,1 o/ Discretionary/advised Self managed 32

33 Personal banking Managed assets Customers assets in Personal bkg. ( bn) Breakdown by asset type ( bn) +7,4% o/2015 1,0 15,2 17,3 18,6 4,6 13,3 11, Discretionary/advised Mutual Funds Execution 33

34 Asset under Management Mutual funds& other OBF Off balance sheet funds (bn ) 7,3 7,8 1,3 1,4 1,3 1,4 4,7 5,0 12,1 2,4 1,7 8,0 3,9 1,9 11,0 5,3 2,1 13,6 4,9 2,3 16,4 Asset managed/ Sicavs Mutual funds 16,8 21,0 Pension funds 23,5 +12,1% o/2015 Breakdown by mutual fund type (bn ) +17% o/2015-3% 1,3 o/2015 1,1 +23% o/2015 1,7 3,0-15% o/2015 0,3 8,8 Third parties Money markets & ST fixed Equities LT fixed income Guaranteed Other +42% o/

35 Bankinter Portugal Key business indicators 4,6bn Loan book + 3% o/1q16 Commercial banking 3,9bn Corporate banking 0,7bn 3,7bn Retail deposits +24% o/1q16 Recurrent results ( millions) Bankinter Portugal Apr. Dec Net Interest Income 65,2 Net Fee Income 25,0 Gross Op. Income 90,2 Operating Expenses -69,9 Pre Provision Profit 20,3 Other Provisions 1,9 Cost of Risk -14,5 Profit Before Tax 7,7 35

36 Consumer Finance Key Business Indicators 898 thousand Active Clients + 23% o/ thousand New Clients +29% o/ M Loan book +46% o/ ,9% Risk adjusted Return 7,3% NPL ratio vs. 7,3% ,5% Cost of Risk vs. 2,9%

37 Linea Directa Policies & Premiums Total Policies (in thousands) +8,4% o/2015 Premiums ( millions) +8,7% o/ ,1% Motor +13,5% Home 738,7 677,0 679,7 650,0 642,0 650,7 +7,8% Motor vs. 5,1% industry* +14,8% Home vs. 3,6% industry* Motor premiums market share 6,9% *Source: UNESPA as of Dec.16 37

38 Linea Directa Efficiency Combined ratio (in %) 92,1 90,1 89,4 87,9 86,7 88,0 76,6 71,7 70,3 68,6 67,7 69,6 15,5 18,4 19,1 19,3 19,0 18,4 Expenses Claims 38

39 Linea Directa Results LDA standalone P&L account ( million) Dif. % Net written premium 738,7 679,7 9% Net earned premium 703,7 658,7 7% Net claims cost -479,4-437,5 10% Operating expenses & other -128,6-124,8 3% Underwriting result 95,7 96,3-1% Net Investment income 35,9 37,2-3% Technical Result 131,6 133,5-1% Otther income/espenses 5,0 5,5 10% Profit Before Tax 136,6 139,0-2% Net Profit 105,6 99,4 6% 33,2% ROE 134% Technical provision coverage 231% Solvency II Ratio 39

40 Coinc, a new pure digital service A strong customer acquisition capabilitiy 111K clients, +34% 1,3 MM deposit balances, +30% 67% of new clients below 44 years age A full digital service for a new different customer 50% mobile acces 80% sucess in entry process New contact center 100% digital with high scalabylity Widening product and service offering Expense & budget mgmt. tools Direct debiting & digital mgmt. Consumer Finnance Wide ecosistem of partners 40

41 Digital Banking Client breakdown* Banking Interactions (monthly) 9% 9% 2 63% 60% 14 digital clients revenues +17% o/ traditional clients 27% 31% Pure digital Mixed Traditonal 91% digital customers 90% of mixed digital customers transactions are digital 11 Towards a mobile world.. 42% of digital client are active with mobile telephone(+43%) push acctions (X5 o/2015) allows greater commercial interaction with clients at zero cost * Comercial Bkg. excluding Bankinter Consumer Finance & Coinc 41

42 Summary FY2016 Key business Indicators Dif. % Active banking clients (in thousands) % New Corporate banking clients % Mortgage loans production (front book) 2.334M 1.857M 26% Consumer Finance (total loan book) 1.045M 719M 46% Payroll accounts (total balances) 5.589M 4.199M 33% AuMs - Of which Private bkg. 49,8bn 31,2bn 46,9bn 29,6bn 6% 10% Total loan book - Of which Corporate/SMEs bkg. 51,4bn 21,7bn 44,2bn 19,7bn 16% 11% Total retail customer funds 44,1bn 34,6bn 27% Línea Directa - Policies (in thousands) - Premiums ( millions) , ,7 8% 9% 42

43 4.- Recap 43 43

44 Recap. FY2016 Record Net Profit: 490M, +30,4% o/2015 Gross Operatin Margin : 1.717M, +9,5% o Net Interest Marging, +12,6% o Fees and Commision Income, +6,1% Client balances o Credit & Loans: M, +16,2% o Retail Deposits: M, +27,5% ROE: 10,9% NPL Ratio: 4,01% CET1 capital ratio Fully Loaded : 11,2% Five main business areas well balanced & profitable o o o o o Corporate Banking Commercial Banking Línea Directa, Insurance Consumer Finance Portugal

45 Results Presentation 0 FY January 2017 Thanks