Portuguese Banks Panel Banco BPI. Morgan Stanley European Banks & Financials Conference London, 1-3 April 2008

Transcription

1 BANCO BPI, S.A. Publicly-held company Head office: Rua Tenente Valadim, no. 284, Porto Share capital: Corporate body no Registered at the Commercial Registry of Porto under number Banco BPI, S.A. is hereby disclosing the content of the document to be presented on the 2nd of April, in London, to a group of institutional investors at the Morgan Stanley conference - European Banks & Financials Conference. Porto, 2 April 2008

2 Portuguese Banks Panel Banco BPI Morgan Stanley European Banks & Financials Conference London, 1-3 April 2008

3 BPI Group Key facts 31 December 07 Total assets Rank, by size Customers Market Cap Strong shareholders 48 Portugal: 4 th /5 th Portugal: 1.4M. 2.6 La Caixa 25% Itaú 18% Bi. Angola: 1 st Angola: 405 th Bi. Allianz 9% Portuguese founders 9% Mozambique: 2 nd 28 March 08 BCP 10% 2

4 I. Growth - Portugal II. Growth - Africa III. Comfortable risk exposure and liquidity position IV. Investment case 3

5 Growing business ahead of competition Customer loans + customer funds (domestic operations) BANKS RELATIVE SIZE (2005) GROWTH (%) GROWTH ( ) BPI RELATIVE SIZE (2007) 45% % % 70% % % 85% % % %

6 Playing the recovery of the Portuguese Economy GDP Growth p.a. More sustainable growth pattern Housing market Budget deficit 2.2% 1.9% 1.8% 1.3% Productive investment Exports + value added + geographically diversified No price bubble Construction & Public Works started to reverse 5-year downward trend NPL s stable Better-thanexpected 6.1% 3.9% As % of GDP 2.6% 2.2% 0.5% 1.5% E 09E E 09E 5

7 Building a retail network of the size of biggest players No. of branches on 31 Dec Growth in period Market Share % % % % % % % 6

8 High street network and Investment centres 2008 F Individuals (Assets < 100 th. ) SME s (Companies w/ turnover < 2.5 M. ) Affluents (Individuals w/ 100 th. Assets < 500 th. Corporates (Companies w/ turnover 2.5 M. ) BRANCHES 700 INVESTMENT CENTRES 40 CORPORATE CENTRES 55 ECSI 2007 BPI: # 1 European Customer Satisfaction Index Lafferty, 2006 BPI: # 1 Best branches (66 banks, 12 countries) Improve time allocated to sales Develop best-practice commercial routines Perfect coordination among commercial teams 7

9 Fostering the upper segment Private Banking and Investment Centres CAGR Last 2Y Business Volume 7.3 bn. Best Private Banking in Portugal Net New Assets 1.4 bn. Clients # Employees # % 18% 21% Private Banking Best-in-class for High Net Worth Individuals # 1 PB Services Overall Domestic Private Bank Client Relationship Management Investment centres Innovative approach for Affluents Double-digit growth Increase shareof-wallet Explore the non-resident segment Improve Client profitability 8

10 Developing business with Portuguese communities Toronto Newark Rhode Island Canada Sweden Netherlands Antilles Caracas Brazil Johannesburg Australia London Paris Hamburg Belgium Luxembourg Geneva Lyon Representative Offices (no.) Paris branches (no.) Clients (th.) Customer loans (M. ) Customer resources (M. ) % Mar % % % % Representative offices Distribution agreements Banco Fomento Angola 9

11 Investment banking playing Iberia Leveraging on experience, skills and franchise Equities Iberian focus; extensive research coverage (c. 100 companies) Small & Mid Caps specialist widely recognised BROKERAGE FEES M Highly profitable Small capital consumption 66% ROE 104% 99% Strong credibility among investors and companies M NET PROFIT Corporate finance High profile transactions Growing cross-border opportunities in Iberia

12 I. Growth - Portugal II. Growth - Africa III. Comfortable risk exposure and liquidity position IV. Investment case 11

13 BFA: strong business growth and market leading positions Dec.07 Bi. $ LOANS TO CUSTOMERS + 75% c.a.g.r Bi. $ 405 th. Clients CUSTOMER RESOURCES +42% c.a.g.r N.º 17 DISTRIBUTION NETWORK % c.a.g.r Excellent position to take advantage of strong growth opportunity in Angola Leading market positions Loans Deposits Branches # 1 # 2 # 2 Market share 24% 20% 23%

14 Angola growth opportunity Angolan economy will continue to grow swifly Banking sector will expand rapidly to become more aligned with comparable markets 30% 20% 10% 0% 3.0% 3.0% 15.0% GDP GROWTH 4.0% 11.2% 20.6% 18.6% 24.4% 16.2% F Rising oil production Stable macro environment Huge infrastructure investment Other SSMI countries South Africa Angola % of Branches as % of GDP population per 100 th w/ bank inhabitants) Loans 1 Deposits account 5.8% x % 46% 2.5 x % x % 80% 22% x % 72% Note: SSMI refers to Sub-Saharan middle-income countries such as Botswana, Cape Verde, Equatorial Guinea, Gabon, Mauritius, Seychelles, and Swaziland (it excludes South Africa). 1) To private sector. 13

15 BFA: uniquely positioned to take advantage of growth opportunity Major branch expansion plan Innovation and segmented approach COMPANIES Corporate centres Differentiated service DISTRIBUTION NETWORK STAFF SMALL BUSINESSES Expand offer High segment Investment centres Personalised financial consultancy Extend the offer of investment products INDIVIDUALS High-mass segment P P Branches Closer relationship with the Clients through the customer managers Low-mass segment Investment centres Corporate centres Support the migration to automatic channels 14

16 Banco Fomento Angola: Leadership in automatic and virtual channels Dec. 07 CARDS 360 th. Debit cards (issued and active) Credit cards MARKET SHARE IN DEBIT CARDS (in active cards) # 2 # 3 # 4 7.6% Source: EMIS 23.0% 19.9% 36.6% 0% 10% 20% 30% 40% 50% AUTOMATIC CHANNELS 137 active ATM (# 1) 31% market share 322 active POS in the EMIS network (# 1) 40% market share 58 active POS in the MSCC network VIRTUAL CHANNELS (active subscribers) BFA Net Individuals BFA Net Corporates 15

17 Investment banking opportunities in Africa Recent high-profile transactions (examples) Mandated co-lead arranger of the Cahora Bassa dam financing in the ambit of the transfer of control to the Mozambican state (US $ 800 M) Advisor to the Angolan Capital Markets Commission in the creation of the stock market Opportunities ahead Angolan Investment (public and private) Hydro-electric projects in the Zambeze valley, transports, Bio-fuels and restructuring of Corporates in Mozambique 16

18 I. Growth - Portugal II. Growth - Africa III. Comfortable risk exposure and liquidity position IV. Investment case 17

19 350 M. rights issue Long term targets Shareholders approval at General Meeting - 23 April Full conditions to be announced closer to subscription period Completion expected by June Tier I 7% Core equity 5.5% Potential capital losses before taxes (28 Mar.) BCP (-111 M. ) Bond Portfolio (-161 M. ) Finance growth Size as % of market cap Improvement in Tier I 14 % c.150 bp 18

20 Equities and bond exposures Feb.08 SIV s 48.3 M. Acquisition cost Net Asset Value: 13.3 M. Accumulated impairment: 35 M. (through P&L) Equities portfolio 0.6 Bi. Market value Bonds portfolio 2.4 Bi. Market value No impairment signs No effective losses expected 19

21 Sound credit risk management Track record of better-than-sector risk indicators Low credit losses even in difficult times 4% LOANS IN ARREARS (more than 30 days) 0.6% NET CREDIT LOSS 1 3% 2% 1% 2.2% 1.5% 1.6% 1.1% 0.4% 0.2% 0.31% 0.33% 0.25% 0.24% 0.19% Average 02 to % 0.23% 0% % Portuguese banks 2 BPI 1) Impairments, deducted of loans written off, as % of average loan portfolio. 2) Source: Bank of Portugal. 20

22 Credit quality % of Loan Portfolio Loans in arrears (> 30 days) Cost of Risk 1 Net credit loss 2 45% Corporates 0.5% 0.12% 35% Mortgage Loans 1.5% 0.16% 4% Consumer, Car Financing and Cards 1.9% 0.58% 9% Small Business 1.7% 0.64% 3% Other 1.3% 0.22% 96% Domestic activity 1.1% 0.21% 0.12% 100% BPI Group 1.1% 0.31% 0.23% 1) Impairments as % of average loan portfolio. 2) Impairments, deducted of loans written off, as % of average loan portfolio. 21

23 Comfortable funding and liquidity situation Consolidated ST Funding MLT (interbank loans, securities & securitisation) Customer Resources FUNDING STRUCTURE 31 Bi. 5% 29% 66% SECURITIES DEBT (MLT) REDEMPTIONS IN 2008 Bi Bi Q 2Q 3Q 4Q FUNDING SOURCES Bi. Euro Medium Term Note Covered Bonds Euro Commercial Paper Assets eligible for ECB (& other) Bi. Maximum SHORT TERM FUNDING GAP Used Dec. 06 Dec % 123% 151% 112% Loans / deposits Loans / On-balance sheet Customer resources Mar.08 Short term funding Short term deposits (assets) Short term funding GAP 22

24 Strong capitalisation and high liquidity BALANCE SHEET Banco Fomento Angola December 2007 M Customer Loans Financial Assets Customer Deposits Liquidity Loans / Customer resources 49% Loans to credit institutions Other Generic loan provisions (49 M. ) and other Shareholders equity 23 Assets Liabilities and shareholders equity

25 I. Growth - Portugal II. Growth - Africa III. Comfortable risk exposure and liquidity position IV. Investment case 24

26 Investment case Improved commercial capacity will leverage play on the recovery of the Portuguese economy Room to develop highly profitable investment banking unit Excellent position to take advantage of growth opportunities in Angola and Mozambique No exposure to sub-prime Sound risk situation Comfortable liquidity and funding 25

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