Earnings Presentation. 1 st Quarter April 24, 2002

Transcription

1 Earnings Presentation 1 st Quarter 2002 April 24, 2002

2 Agenda Favourable evolution of Net Income and main Business Indicators 1

3 Main Indicators EUR Million % Annual Net Income % ROE 34.6% 31.2% -3.4pp ROA 1.1% 1.1% Total Assets 60, , % (*) Loans to Customers (net) 39, , % (*) Customer Funds 46, , % (*) Operating Costs as % of Total Income (Domestic operations) Solvency Ratio (T otal Capital-BIS) 54.4% 52.7% bp 10.4% 9.5% bp (*) On comparable basis and considering assets securitization. 2

4 Main Developments in 1 st Quarter 2002 Annual Shareholders Meeting approved 2001 Annual Report and Accounts, and a dividend of 0.15 cents per share. BCP shares joined the Euronext 100 Index, with a 0.53% weight, corresponding to the 53rd position on the ranking of major companies listed on the Paris, Amsterdam, Brussels and Lisbon Stock Exchanges. Classification of BCP as the sixth most competitive institution on the 2002 edition of Competitive Fitness of Global Firms published by INSEAD. BCP Investimento received the Residential Mortgage Deal of the Year award granted by the Structured Finance International magazine following launch of the first securitisation of Mortgage Loans made in Portugal and BCP was nominated as Best Corporate Finance Bank in Portugal by the Global Finance magazine. Sale of economic interests in Grupo Financeiro BITAL S.A. (Mexico), corresponding to 8.3% of the share capital of the company, and 66.6 millions of convertible bonds, for a total consideration of US$ 85,000,000. 3

5 Agenda Favourable Development of Domestic Activity 1 st Quarter confirms improvement of efficiency and the benefits from the new commercial model 4

6 Retail Networks Resuming growth of customers funds Total Customers Funds growth Domestic Retail Networks (Euro billion) Recovery across all Retail Networks ( % March 2002 / March 2001) + 6.5% 37.3 P & N Private Banking 13% 35.0 NovaRede 11% Atlântico 4% SottoMayor 3% Monthly average accumulated balance 5

7 Retail Networks Sustained growth of Loans Direct Loans growth Domestic Retail Networks (Euro billion) Positive evolution across all Retail Networks ( % March 2002 / March 2001) % 36.9 SottoMayor 15% Corporate e Empresas 9% 33.1 NovaRede 8% Atlântico 7% Monthly average accumulated balance 6

8 Retail Networks Increase in new accounts and cross-selling 250,000 New Accounts (Thousands of accounts; % annual change) Simultaneous increase on cross-selling indicators 1, % NovaRede ,270 Sep 01 Mar % % Atlântico Sep 01 Mar 02 SottoMayor Atlântico NovaRede SottoMayor Sep 01 Mar 02 7

9 Multi-product / Multi-channel Distribution Model Positive results driven by products campaign Sale of Médis health insurance Number of contracts (Banking channel) Mortgage Loans (New production Banking channel) % % st Q 01 1st Q 02 (thousand contracts) (euro million) 1st Q 01 1st Q 02 8

10 New Added Value System Measuring Branches profitability with a sales focus Example Base = 100 Monthly Branch profitability indicator New targets + 10% Customer Funds -94% + 20% Loans % Cards Traditional System Without new Sales With new Sales Monthly profitability (Euro Thousand) 9

11 Source: Eureko 2001 Earnings Presentation March 15,

12 EUREKO Group Structure Achmea Association BCP Other Shareholders 56.8% (1) 24.6% (1) 18.6% (1) Eureko BV 91% 100% 100% 100% 98% 92% Achmea Holding (Holland) Seguros e Pensões (Portugal) F&C Mgmt Friends First (Ireland) Inter American (Greece) Union (Slovakia) 100% Imperio France (France) Associates PZU 20% BBG 20% Novabank 10% MAAF Vie 10% MAAF SA 8% (1) Participation as percentage of voting rights. 11

13 Insurance: Significant increase in Gross Written Premiums: Life (8%) and Health (11%) Gross Written Premium (Euro million) +8% Leading presence in different markets ,726 7,237 Holland 54% +8% 3,793 4,105 +3% +11% 1,552 1,598 1,381 1,533 Ireland 7% Greece 6% Others 1% Portugal 32% Life Non-life Health Total In % of GWP 12

14 Life Insurance: Gross Written Premium grew by 12% on APE basis EUR Million Change Single Premium Contracts 2,516 2,395 5% Annual Premium Contracts 1,589 1,398 14% Life Gross Written Premium 4,105 3,793 8% Annual Premium Equivalent (APE) 1,841 1,638 12% APE = Annual premium contracts + 10% x Single premium contracts 13

15 Operating Costs: Potential to significantly improve efficiency Life Combined ratio as % of net premium Non-Life Combined ratio as % of net premium Health Combined ratio as % of net premium 107.0% 108.7% 1.64% 105.0% 1.53% (*) 1.47% 1,2% Best Practice Europe 100% Best Practice Europe 102.3% * Excluding 0.17 bp effect produced by Interamerican consolidation. 14

16 Assets Management (F&C): Resilient and balanced portfolio 100% = 112,3 billion Euros Customer portfolio with strong presence of Institutional Investors 3rd Party 70% In-House 30% Holland 50% Portugal 16% Geographical diversification by origination market Balanced investment portfolio Equity 41% UK 20% Others 7% Germany 8% Others 6% Bonds 47% Property 5% 15

17 1 st Quarter 2002: Eureko confirms premiums growth and positive evolution of Net Income (Euro Million) Eureko Total Premiums Quarterly Net Income recovers % 1,975 2, Health Non-Life % Life % 1, Q 4 01 Q 1 01 Q 1 02 (E) Q 1 01 Q 2 01 Q 3 01 Q (E) (E) Estimate 16

18 Source: BBG First Quarter Earnings presentation April 18,

19 BIG Bank GDAŃSKI 1st quarter confirms good progress made in 2001 Positive trend confirmed by 1 st quarter results Net interest income increases 37%, with net interest margin improvement from 3. 2% to 4% resulting from new pricing policy. Increase of 18% in credit and 4% on retail deposits, with an increase in loans to deposits ratio to 65%. Cost-to-income improved by 12 b.p. to 81%, reflecting the potential for significant efficiency gains. Rationalization and modernization programme Significant progresses made on centralization of IT platform, to be concluded in July Staff reduction of 218 employees (-3.3% of workforce). Strengthening multi-channel platforms: -increase of 14% on the transactions made via Call Center; -61% of all corporate transaction made via electronic banking. BBG stocks rose 18% during the 1 st quarter

20 BIG Bank GDAŃSKI 1 st quarter confirms good progress made in 2001 Total BBG (including Millennium) Retail Branches (Total BBG + Millennium) Credit (euro million) Deposits (euros million) Loans to Deposits ratio % % % ,102 2,486 3,848 3, % 65.4% Source: BBG 19

21 BIG Bank GDAŃSKI Steady progress Net Income (Euro Million) Revenues (NII+ Commissions) + 26% Cost-to-Income ratio -11,9 bp ROE 12.7 % 92.9% 81.0%

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23 NovaBank Retail activity confirms growth potential Opening of new accounts proceeds at strong pace: + 20 % on 1 st quarter Retail innovation achieved with the introduction of new products: Prim 5% Cards (MasterCard) Enlargement of the Mortgage Product offer. Credit growth focused on mortgage, which represents 62% of credit portfolio. Bottom line 15% ahead of budget. 22

24 NovaBank 1st Quarter confirms growth Customer Loans (Euro million) Customer Deposits (Euro million) Loans to Deposits Ratio + 280% + 127% b.p. 1,980 1, % % %

25 NovaBank Good performance from retail activity Number of Clients (thousands) Number of clients per branch Operating Costs / Total Income % + 48 % ,171 1,500 1, % 149.2% 125.6%

26 Agenda Financial Statements Note: Comparisons on pro forma basis for figures, considering the full consolidation of NovaBank (since ) and Banco Internacional de Moçambique (since ). 25

27 Revenues Evolution Growth in line with market conditions EUR Million % Annual % 1st Q 02 4th Q 01 Net Interest Margin % -3.4% Income from securities (inc. Consolidation by equity method) % Comissions (net) % 0.5% Profits from trading activities (net) % -7.6% Other operating income (net) % 58.1% Total % 12.8% (*) (*) Includes Capital Gains of 42 million Euros on Real Estate sales. 26

28 Net Interest Margin Client s Spread 4.25% 4.13% 4.21% 4.07% 3.75% Net Interest Margin 2.54% 2.56% 2.59% 2.55% 2.54% 1st Q 01 2nd Q 01 3rd Q 01 4th Q 01 1st Q 02 27

29 Net Interest Income Net interest margin affected by market conditions EURIBOR 6 and 12 months Customer Spread

30 Income from Securities EUR Million Consolidation Method % Annual (*) Eureko Equity 30,0 18,6-37,8% Big Bank Gdanski Equity 0,5 9,7 2016,4% Banco Intesa BCI Dividends EDP Dividends Cimpor Dividends Brisa Dividends Other (**) 15,1 12,8-15,2% 45,6 41,1-9,8% (*) Estimate (**) Including Banco Sabadell 29

31 Commissions EUR Million % Annual % 1st Q 02 4th Q 01 Cards % 3.4% Securities % -34.4% Other banking comissions % 19.6% Assets Management % -12.6% Total % 0.5% 30

32 Other Operating Income (Euro million) % Annual % 1st Q 02 4th Q 01 Income from services and fees 23,9 27,1 13,4% -11,8% Reimbursement of expenses 8,6 7,4-14,4% -16,3% Loans Recovery 15,7 17,6 12,1% -3,5% Other 19,7 69, ,3% (*) Total 67,9 121,8 79,2% 58,0% (*) Includes Capital Gains of 42 million Euros on Real Estate sales. 31

33 Agenda Improving efficiency 32

34 Operating Costs EUR Million % Annual % 1st Q 02 4th Q 01 Staff Costs % -2.1% Domestic % -1.6% International % -4.6% Admin. Costs % 2.9% Domestic % 9.4% International % -21.4% Depreciation % -6.0% Domestic % -11.6% International % 19.0% Total % -0.8% Domestic % 0.9% International % -8.8% 33

35 Cost-to-Income Restructuring programme delivers improvements on efficiency of domestic operations Operating Costs as % of Total Income 54.4% Domestic Activity 53.6% 52.7% 31 Mar Dec Mar 02 Foreign Operations Ratio 89.2% 97.3% 99.5% 34

36 Agenda Selective growth in loans 35

37 Loan Portfolio Selective and controlled growth EUR Million Loans to Customers (gross) Mortgage loans + 9.5% (*) % Annual % % 1 st Q 02 4 th Q % Selective growth % Sector Annual Food, beverage and tobacco -3.1% Consumer Credit % % Textiles +0.3% Chemical +2.4% Engineering +1.4% Loans to Companies % % Construction +19.0% Retail Business +7.4% Wholesale Business -7.5% (*) On comparable basis, includes securitised loans. 36

38 Loan Portfolio Quality EUR Million (*) Past Due Loans Past Due Loans as % of Total Loans 1.6% 1.7% 1.7% Provisions as % of Past Due Loans 152.5% 146.3% 138.2% Total Provisions as % of Total Loans 2.4% 2.4% 2.4% Provisions charges as % of Total Loans 0.5% 0.5% 0.8% of which: (annualized) (annualized) Past Due Loans as % of Total Loans Consumer 2.5% 3.3% 4.0% Mortgage 0.7% 0.9% 0.8% Companies 1.7% 1.7% 1.8% (*) On comparable basis, includes securitised loans. 37

39 Customer s Funds Evolution Growth in line with the market EUR Million % Annual % 1st Q 02 4th Q 01 Deposits 27, , , % -2.3% Assets under Management 10, , , % 10.1% Capitalisation Insurance and Structured Products 8, , , % 3.8% Total 46, , , % 1.4% 38

40 Solvency Ratio (Euro millions) RWA 48,857 49,724 Tier I 6.5% Tier II 2.9% 9.4% Total BIS Ratio 9.5% Tier I 6.4% Tier II 3.1% Core 4.0% Pref. 2.5% 8.3% Total BoP Ratio 8.5% Core 3.9% Pref. 2.5%

41 Capital base Evolution during 1 st Quarter 2002 EUR Million Core capital 1,929 1,953 Preference Shares 1,224 1,226 - Total Tier I 3,153 3,179 - Tier II 1,440 1,553 Total Capital 4,593 4,732 RWA 48,857 49,724 Ratios - Core 4.0% 3.9% - Pref 2.5% 2.5% Detail of Changes Retained earnings + 80 BITAL (Goodwill) (58) Other + 2 Net Change + 24 BITAL + 83 Other + 30 Net change Total Tier I 6.5% 6.4% - Total Tier II 2.9% 3.1% Total Tier I + Tier II 9.4% 9.5% 40

42 2 nd Quarter 2002 Outlook Net Interest Income progress in line with market evolution Development of domestic activity enhanced by the new commercial model Consistent growth of Poland and Greece operations Adequate capital base to pursue organic growth Assets allocation and properties management optimisation 41

43 Exhibits Note: Financial Statements as reported (accounting basis not pro forma). 42

44 Macroeconomic Outlook for Portugal Bank of Portugal OECD B. of Portugal OECD (November 01) (December 01) (November 01) GDP (% change) Private Consumption (% change) Public Consumption (% change) Investment (% change) Domestic Demand (% change) Exports (% change) Imports (% change) CPI (average rate) Unemployment rate n.a. 4.4 n.a. 4.4 Current and Capital Account (% of GDP) Government deficit (% GDP) 2.2 n.a. n.a. n.a. Public Debt (% GDP) 55.9 n.a. n.a. n.a. 43

45 Consolidated Statement of Income (Amounts expressed in EUR thousands) Accumulated Quarterly VAR. 31/03/02 31/03/01 31/03/02 31/12/01 30/09/01 30/06/01 31/03/01 Interest income -11,5% , , , , , , ,3 Interest expense -19,5% , , , , , , ,3 Net interest income 1,1% , , , , , , ,0 Provision for possible loan losses 82,6% , , , , , , ,8 Net interest income after provision for possible loan losses -13,7% , , , , , , ,2 Other operating income: Income from securities -9,8% , , , , , , ,3 Commissions 5,9% , , , , , , ,6 Profit arising from trading activity -29,4% , , , , , , ,4 Other income 64,8% , , , , , , ,5 Gains on sale of shares of subsidiaries Other operating expenses 5,4% , , , , , , ,8 Commissions 5,4% , , , , , , ,5 Losses arising from trading activity -51,8% , , , , , , ,9 Staff costs 0,7% , , , , , , ,0 Other administrative costs 11,5% , , , , , , ,5 Depreciation 9,1% , , , , , , ,6 Other provisions 283,0% 850,2 222,0 850, , , ,3 222,0 Other expenses 1,9% , , , , , , ,2-5,9% , , , , , , ,7 Income before income taxes 5,3% , , , , , , ,3 Income taxes 5,5% , , , , , , ,9 Net income after taxes 5,3% , , , , , , ,4 Minority interests 9,7% , , , , , , ,6 Recurring net income 4,6% , , , , , , ,8 Restructuring costs ,9 Pre-acquisition net income Net income attributable to the Bank 4,6% , , , , , , ,8 Number of shares (Average) 10,3% Earnings per share in Euros -5,2% 0,07 0,08 0,07 0,02 0,07 0,08 0,08 44

46 Consolidated Balance Sheet Assets (Thousands of Euros) Cash and deposits at central banks Loans and advances to credit institutions Repayable on demand Other loans and advances Loans and advances to customers Securities Treasury stock Investments Intangible assets Tangible assets Other debtors Prepayments and accrued income Liabilities Amounts owed to credit institutions Repayable on demand With agreed maturity date Amounts owed to customers Repayable on demand With agreed maturity date Debt securities Other liabilities Accruals and deferred income Provision for liabilities and charges Subordinated debt Total Liabilities Shareholders Equity Share capital Share premium Reserves and retained earnings ( ) ( ) Total Shareholders Equity Minority interests Minority interests in preference shares Total Minority Interests

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