Presentation of Komercijalna Banka AD Skopje as at December 31 st 2011

Transcription

1 Presentation of Komercijalna Banka AD Skopje as at December 31 st 2011

2 Contents Komercijalna Banka Overview 3 The Republic of Macedonia 9 The Macedonian Banking Sector 11 Komercijalna Banka Financial Overview 19 2

3 Komercijalna Banka Overview

4 Overview (I): A cornerstone of Macedonia s financial sector... Leading Market Position Expected to keep market position as one of the leading banks in Macedonia with assets (EUR 1,303.3 m) and deposits from customers (EUR 1,073.9 m) and in terms of net loans to customers (EUR m) as of December 31, Customer Base Leading corporate customer base (41,315 customers) Second largest retail customer base (823,713 customers) One of Macedonia s Most Prominent Financial Institutions Long-standing history Well-established customer relationships Strong Brand Recognition Associated with quality, innovation and trustworthiness Modern Corporate Governance Structure Privatisation completed with 98.15% private ownership (53.60 % foreign, as at December 2011) and about 2% held by the Public sector Diversified ownership structure with one single shareholder owning 10% (East Capital Explorer Investments AB, Stockholm, Sweden) EBRD active shareholder with Board representation (more than 5% participation) Comprehensive, best-practise corporate governance Rigorous risk management and money laundering practices 4

5 Overview (II):...with a track record of significant achievements... Experienced Team of Executives Providing leading position in number of areas combined with maintaining stable market position History of product innovation and investments in new technologies Well Invested Distribution channels Very well presented branch network - over 70% of the current network newly opened or refurbished in the past five years Rapidly developing multi channel distribution network comprising POS Terminals, ATM s, Info kiosks, E-Banking (both retail & corporate, as well as f/x and in denars), Telephone banking Fully Integrated IT platform State-of-the-art system Fully protected and readily upgradeable Driver of Sector Innovation First to issue credit cards (1996) First to operate ATMs and POS terminals (1996) First to establish a dedicated brokerage house (1997) Founded one of the country s two second pillar pension funds (2005) Founded the investment fund KB Publikum Invest AD (2009) Profitable Operation with Sound Asset Quality History of profitable operations Adequately provisioned loan portfolio 5

6 Overview (III):...a long-standing successful history Established as Komunalna Banka under municipal ownership 1963 Leading role in rebuilding the economy and housing after disastrous earthquake in Skopje 1966 Name change to Komercijalno Investiciona banka Skopje and merger with 3 banks 1973 Operating as Stopanska Banka, Skopje Branch as part of an integrated banking system 1990 Incorporated as an open joint stock company Start of a significant expansion phase based on organic and acquisitive growth establishing nationwide coverage 6

7 Overview (IV):...the largest distribution network in the country branches including headquarters as at December, Coverage of all major cities and economically significant regions - 53 city branches (36 in Skopje + HQ1 & HQ2) - 11 regional branches Second largest ATM network in the country installed ATMs as at December 2011 (133 as at Dec 2010) Fast expanding merchant network Over 6,200 POS terminals installed as at December 2011(>5,700 as at Dec 2010) - Over 1,460 imprinters State-of-the-art IT infrastructure Fully integrated Real time Branch Network 7

8 Overview (V):...and an enviable market position Market share as at December 31, 2011 Total assets 24.2% Capital and reserves 23.1% Total deposits from non-financial sector 27.9% Total net-loans to non-financial sector 23.6% Total number of debit cards issued 19.5% Total number of credit cards issued 19.1% Total number of merchants in the country 38.7% acquiring bank cards issued by KB Total number of POS and ATM acquiring 22.8% cards Total value of realized domestic payment operations Total number of accounts opened to legal entities Total trading realized at the MSE Total number of transactions realized at the MSE 23.5% 22.0% 48.1% 21.7% Banking Awards - Bank of the Year for 2001, 2002, 2004, 2005, 2010 and The Best Bank for 2002, 2003 & The Best Bank by Assets Strength for 2005, 2006 & The Best Bank by Capital Strength for The Best Bank by Gross Profit for 2005 & The Best Bank by ROE for The Best Bank in Macedonia for 2004, 2005, 2006, 2007, , 2010 and Best Developing Trade Financier for 2003, 2004, Most active issuing bank In Macedonia in 2009 The most transparent company for 2008, 2009 & Participant in the best financial deal 2007 EUR STP Excellence Award 2009 EUR STP Excellence Award 2010 EUR STP Excellence Award - Super brand in Macedonia for 2009 Non government organization Transparency zero corruption - Prize for best corporate governance - National prize for the social responsibility practice of companies in RM for 2008 & 2009 price for Corporate Social Responsibility Integrated Approach for 2009 and

9 The Republic of Macedonia

10 The Republic of Macedonia - Macroeconomic Environment: Key economic indicators (1) Est.2012 Population (000's) 2,053 2,057 / / GDP per capita (in EUR) 3,251 / / / Real GDP growth (%) (2) 2.4 Central Government Budget surplus/deficit (% of GDP) / / The Fitch agency affirmed Macedonia s foreign currency rating at BB+, the short-term foreign currency rating at B and the Country Ceiling at BBB-. On October 27, 2010 the Agency revised the Outlook on the Rating from negative to stable and on October 2011 confirmed the stable credit rating Inflation (CPI%) av Current Account Bal.(EUR'm) / Gross External Debt (EUR'm) 3,780 4,134 4,647 (3) / FX Reserves (EUR'm) 1,598 1,714 2,069 / Foreign direct invest.(eur'm) / / / Unemployment Rate (%) (4) / MKD/EUR year end (1) Source: Ministry of Finance, State Statistical office, NBRM (2) Estimation NBRM (3) As at (4) As at On Aug. 24, 2011,the Standard & Poor s Agency lowered its long-term local currency sovereign credit rating on the Republic of Macedonia to 'BB from 'BB+' and affirmed its long-term foreign currency sovereign credit rating at 'BB'. It also affirmed the 'B short-term ratings on Macedonia. The outlook is stable. Transfer and convertibility assessment for Macedonia remains 'BB+'. 10

11 The Macedonian Banking Sector

12 Macedonian Banking Sector (I): The structure and the characteristics Structure 17 active banks (3 large, 8 medium and 6 small) 8 saving houses Characteristics High concentration with three large banks low level of financial intermediation Significant growth prospects Continuous growth of the level of privatization Continuous growth of the participation of the foreign capital Improvement of the ownership structure Increased network Increased total assets Growth in loans and deposits Increased banking capital Constant increase in profitability and efficiency 12

13 Macedonian Banking Sector (II)...assets... Total assets (EUR'm) 6,000 5,000 4,000 3,000 2,000 1, ,385 4,964 4,390 Total assets 13

14 Macedonian Banking Sector (III)...and placements to non-financial entities... Placements to non-financial entities (net) (EUR'm) 3,500 3,000 2,500 2,000 1,500 1, ,569 2,737 2,943 Placements to non-financial entities (net) 14

15 Macedonian Banking Sector (IV)...and deposits from non-financial entities... Deposits from non-financial entities (EUR'm) 4,000 3,500 3,000 2,500 2,000 1,500 1, ,807 3,468 3,071 Deposits from non-financial entities 15

16 Macedonian Banking Sector (V)...and capital & reserves... Capital & reserves (EUR'm) Capital & reserves 16

17 Macedonian Banking Sector (VI) the crisis......and financial results influenced by Net profit (EUR'm) Net profit 17

18 Macedonian Banking Sector (VII)...and drop of profitability from Profitability indicators (EUR'm and %) 7.3% % 3.4% % 0.8% 0.4% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% NII ROAA ROAE 18

19 Komercijalna Banka Financial Overview

20 ROE (1) Financial Performance (I): Highlights Key Performance Indicators Key Performance Indicators Net Interest margin 3.5% 3.4% 3.4% Net Interest margin 5.3% 3.8% 3.9% 4.1% 3.5% Net fees and Commission / Income 20.4% 21.9% 22.7% Net fees and Commission / Income 23.0% 24.8% 24.5% 20.3% Cost/Income 53.0% 52.0% 47.8% Cost / Income 54.5% 56.6% 45.8% 45.8% 53.0% NPLs / Total Loans NPLs / Total Exposure 9.1% 8% 6.9 % 5.2% 8.1% 5.4% 9.6% 6.2% NPL Coverage 72.6% 72.6% % % 83.9% 92.6% 79.0% 89.9% 87.3% Net Net Loans Loans / Deposits / Deposits (Customers) (Customers) 42.4% % % 54.3% 70.4% 76.6% 78.1% 65.1% ROE (1) 8.9% % % 19.2% 17.9% 22.0% 15.5% 11.4% 1.0% 1.7 % 1.9% 2.5% 1.8% ROA (1) 1.8% 2.0% 1.4% 14.8% 11.8 % (2) 10.5% 9.9% 10.6% Capital adequacy 10.6% 11.1% 13.5% (1) After taxation 20

21 Financial Performance (II): Financial indicators Financial indicators Earnings per share (EPS) Book value (BV) Average market price per share Dividend Yield 6.39% 5.48% 5.93% Price/Earnings (P/E) (1) Price/Book value (P/B) (1) Price/Total assets (P/A) (1) Average market capitalization (in million EUR) )Calculation according data in MKD 21

22 Financial Performance (III):Income statement (IFRS) in million EUR Index 10/09 Index 11/10 Net interest income Net fee & commission income Other income Total income Operating expenses Impairment losses Operating profit Share of loss from associate Profit before tax Taxation Profit after tax

23 Financial Performance (IV): Balance sheet (IFRS) in million EUR Assets Index 10/09 Index 11/10 Cash and cash equivalents Customer loans Bank placements and loans Total loans and placements , , Other assets Total assets , , Liabilities Total deposits , Borrowings & other liabilities Total liabilities , , Shareholders funds Share capital * Share premium Treasury shares Reserves Retained earnings Shareholders funds Total liabilities and shareholders funds , , * The decrease is a result of changing the course of the denar against the euro 23

24 Financial Performance (V): Total Assets 1,400 1,200 1, (1) Total balance sheet assets (based on net loans after provisions) Total assets (1) (in million EUR) 6% 15% 64% 15% 1,152 Placements to banks Loans to customers Cash and equivalents Other assets 8% 33% 58% 1% 1,303 8% 37% 53% 2% 24

25 Financial Performance (VI): Gross Loans to Customers Total Loans - Corporate vs. Retail (EUR'm) % 18% % 82% % % Corporate loans Retail loans 25

26 Financial Performance (VII): Liabilities Total Liabilities (EUR'm) 879 4% 96% 1,022 5% 95% 1,148 5% 95% Total deposits Borrowed funds & other liabilities (1) Total deposits include deposits from banks which represent less than 2% within total liabilities 26

27 Financial Performance (VIII): Deposits Customer Breakdown Deposits by customer category (EUR'm) % 29% % 71% 1, % 74% Retail deposits Corporate deposits (1) Corporate deposits include deposits from banks which represent 1.6% within total deposits 27

28 Financial Performance (IX):Shareholders Equity and Capital Adequacy Shareholders Equity and Capital Adequacy (EUR'm) % 11% % % 15% 57% 13.5% 14% 12% 10% 8% 54% 55% 6% 4% 31% 27% 32% 2% 0% Share capital incl.share premium Retained earnings Reserves Capital adequacy 28

29 Financial Performance (X): Income Breakdown Income (EUR'm) Total income Net interest income Fee and commission income Other income 29

30 Financial Performance (XI): Expenses Breakdown Operating expenses (EUR'm) % 10% 8% 15% 18% 13% 11% 10% 11% 15% 16% 16% 49% 48% 48% Wages, salaries and other employees' costs Materials and services Depreciation and amortization Insurance Other expenses 30

31 Financial Performance (XII): Efficiency Total income and efficiency (million EUR and %) % 52.0% % 54.0% 53.0% 52.0% 51.0% 50.0% 49.0% 48.0% 47.0% 46.0% 45.0% Total income Cost/Income 31

32 Financial Performance (XIII): Non-Performing Loans Total loans (1) vs. Non-Performing Loans (EUR'm) % 89.8% 8.1% 92.6% 9.6% 87.3% % 10% 89.8% 78.8% 7% 83.8% 8.1% 92.6% 89.8% 87.3% 14% 84% 8% 8.1% % 9.6% 87.3% Total loans NPLs NPL provisions % NPLs/Total loans % NPL provisions/npls (1) Gross corporate and retail loans excluding bank placements 32

33 Financial Performance (XIV): Asset Quality 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Asset Risk Categories (%) 4.8% 4.4% 5.0% 0.6% 1.6% 0.6% 2.0% 2.1% 2.0% 4.6% 3.2% 4.5% 88.0% 88.7% 87.9% A B C D E 33