Presentation of Komercijalna Banka AD Skopje as at September 30, 2018

Transcription

1 Presentation of Komercijalna Banka AD Skopje as at September 30, 2018

2 Contents Komercijalna Banka Overview 3 The Republic of Macedonia 11 The Macedonian Banking Sector 13 Komercijalna Banka Financial Overview 21 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 1,787.4 m) and deposits from customers (EUR 1,523.0 m) and in terms of net loans to customers (EUR m) as at September 30, Customer Base Leading corporate customer base (34,414 customers*) Second largest retail customer base (938,575 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 98.77% private ownership (6.5% foreign, as at September 2018) and about 1.23% held by the Public sector Diversified ownership structure with one single shareholder owning % (Adora Inzenering DOOEL export-import Skopje) EBRD has sold its share from 5.245% in November 2017 East Capital Explorer Investments AB has sold its share from % in March 2018 Comprehensive, best-practise corporate governance Rigorous risk management and money laundering practices * resident and non-resident corporate customers 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 covering all major cities and economically significant regions 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, m-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) First issuer of contactless card payment (2015) Introduction of 3D secure technology for safe on-line purchasing with VISA and MasterCard cards (2016) Acceptance of MasterCard cards with BIN 2 (2016) Creation of new investment fund KB Publikum MBI 10 by the investment fund KB Publikum Invest AD (2017) KomPay strategically innovative service with the most sophisticated technology for contactless payment with debit and credit cards in collaboration with MasterCard (2018) 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 September, Coverage of all major cities and economically significant regions - 54 city branches (36 in Skopje and 18 regional) - 11 regional branches Largest ATM network in the country active ATMs as at September (157 as at December 2017) Total number of sales points*: 4,913 as at September 2018 (5,235 in December 2017); Average number of active sale places** is 4,052 in September 2018; (4,171 in December 2017). State-of-the-art IT infrastructure Fully integrated Real time Branch Network *According to the new methodology of NBRM for representation of this type of data. **an active sale place is the one where at least one transaction has been performed. 7

8 Overview (V):...and an enviable market position Market share of Komercijalna Banka AD Skopje as at Total assets 22.7% Capital and reserves 19.6% Total deposits from non-financial sector 26.4% Total net-loans to non-financial sector 15.3% Total number of issued cards* 12.6% - debit cards * 13.2% - credit cards* 10.4% Total number of POS and ATM acquiring cards * 16.9% Credit transfers in the country - by value * 22.3% - by number of transactions * 20.2% Total number of transactional accounts* 19.1% Total number of deponents* 43.7% Total trading realized at the MSE 38.2% Total number of transactions realized at the MSE 29.7% *As at

9 Overview (VI):...International banking awards Bank of the Year for: STP Excellence Award for: & 2014 The Best Bank for 2002, 2003 & 2004 The Best Bank by Assets Strength for 2005, 2006 & 2007 The Best Bank by Capital Strength for 2005 The Best Bank by Gross Profit for 2005 & 2007 The Best Bank by ROE for 2007 The Best Bank in Macedonia for: o 2004, 2005 o 2006, 2007 o 2008, 2009 o 2010, 2011 o 2012 & 2013 Best FX Bank for 2013 & 2014 Best Internet Bank in Republic of Macedonia for 2015 Best FX service provider in Macedonia for 2017 & 2018 US Dollar payments STP Excellence Award 2017 Best Performance Best Developing Trade Financier for 2003, 2004, & 2008; Most active issuing bank In RM in 2009 & 2017 Award for most active participant in the program of EBRD TFP (Trade Facilitation Program) for 2014, 2015 & 2016 (already thirteen years in a row). Deal of the year for KB/ Participant in the best financial deal Euro STP Excellence Award for 2014 Award for excellent quality for performing payment and financial transfers STP (Straight-Through-Processing) Award for 2016 &

10 Overview (VI-continuing):...Domestic banking awards Awards from the Macedonian Stock Exchange: The most transparent company for : o 2008, 2009 o 2010, 2011 o 2014, 2015 & o 2016 & 2017 (II place) Plaque for achieving first place in turnover and number of transactions carried out in 2012 and 2014; second place in 2016 second place in 2015 & Award for listed company with biggest turnover and number of transaction Award for listed company with largest turnover in the last 20 years from the existence of the MSE; Award for MSE`s member with largest number of transactions and largest turn-over in the last 20 years from the founding of the MSE. Super brand in Macedonia for 2009 Super brand in Macedonia for 2015/2016 Non government organization Transparency zero corruption Red Cross of the Republic of Macedonia Prize for best corporate governance National prize for the social responsibility practice of companies in Republic of Macedonia for 2008, 2009, 2011 & Award for Corporate Social Responsibility Integrated Approach for 2009, 2010 and 2011 Gold Supporter Award 2012 Certificates of appreciation to blood donors of Komercijalna Banka Promoter of the humanitarian movement Pay it forward Web site of the year for under sponsorship by the Ministry of Information Technology 10

11 The Republic of Macedonia

12 The Republic of Macedonia - Macroeconomic Environment: Key economic indicators (1) Q Industrial production volume index 4.9% 3.4% 0.2% / External Trade of RM (%) -10.7% 6.7% 14.6% / Real GDP growth (%) * Central Government Budget surplus/deficit (% of GDP) * Inflation (CPI%) av Current Account Bal.(EUR'm) * Gross External Debt (EUR'm) 6,290 7,217 7,373 8,433* FX Reserves (EUR'm) 2,262 2, ,336 2,709.1 Foreign direct invest.(eur'm) * Unemployment Rate (%) * MKD/EUR year end In July 2018, The Fitch agency has confirmed the credit rating of Macedonia BB with positive outlook due to the political stabilization and improvement of the key International relations. In March 2018 the Credit Rating agency Standard & Poor s has confirmed the credit rating of Macedonia in domestic and foreign currency to BB- stable, reflection of the balanced risks between public debt and political uncertainty from one side and good economic perspectives on the other side. (1) Source: Ministry of Finance, State Statistical office, NBRM * Q2 2018; 12

13 The Macedonian Banking Sector

14 Macedonian Banking Sector (I): The structure and the characteristics as at Structure 15 active banks (5 large*, 7 medium and 3 small) 2 saving houses Characteristics High concentration with the 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 Continuous growth of the assets Growth in loans Growth of the deposits despite the worsened political situation in Republic of Macedonia Increased banking capital Constant increase in profitability and efficiency *As at , the group of large banks is consisted of the following banks: Komercijalna Banka AD Skopje, Stopanska Banka AD Skopje, NLB Banka AD Skopje, Ohridska Banka AD Skopje and Halk Bank AD Skopje 14

15 Macedonian Banking Sector (II)...assets... Total assets (EUR'm) 8,000 7,800 7,600 7,400 7,200 7,000 6,800 6,600 6,400 6,200 7,892 7,513 7,233 6, Q Total assets 15

16 Macedonian Banking Sector (III)...and placements to non-financial entities... Placements to non-financial entities (net) (EUR'm) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, ,494 4,709 4,216 3, Q Placements to non-financial entities (net) 16

17 Macedonian Banking Sector (IV)...and deposits from non-financial entities... Deposits from non-financial entities (EUR'm) 6,000 5,800 5,600 5,400 5,200 5,000 4,800 4,600 4,400 5,763 5,518 5,250 4, Q Deposits from non-financial entities 17

18 Macedonian Banking Sector (V)...and capital & reserves... Capital & reserves (EUR'm) Q Capital & reserves 18

19 Macedonian Banking Sector (VI)...and financial results Net profit (EUR'm) Q Net profit 19

20 Macedonian Banking Sector (VII)...and increased profitability Profitability indicators (EUR'm and %) % % 19.5% % % % 14.5% 9.5% % 1.5% 1.4% % 4.5% Q NII ROAA ROAE -0.5% 20

21 Komercijalna Banka Financial Overview

22 Financial Financial Performance (I): (I): Highlights In 2013 Komercijalna Banka AD Skopje acquired 200 ordinary shares issued by Investment fund Management Company KB Publikum Invest AD Skopje in total amount of EUR 200 thousand. The share of Komercijalna Banka AD Skopje increased from 50% to 64.29%.Thus, KB Publikum became subsidiary of the Bank. Pursuant to legislation, financial statements of subsidiary are incorporated in consolidated financial reports, starting from the date the control commences. * o As at the amount of total assets on consolidated basis is EUR 1,737.6 million, o the amount of total capital and reserves is EUR million, o the amount of consolidated net profit is EUR 21.5 million, o Total assets of subsidiary on represents less than 1% of the total Bank s assets. According to the Decision on consolidated supervision by NBRM (Official Gazette of the RM No.17/2008) if the amount of total assets of subsidiary is less than 1% of the amount of total assets of the parent entity, then subsidiary will not be included into the consolidated financial reports for the purposes of consolidated supervision. Therefore, the capital adequacy is not calculated on consolidated basis. The data from Income statement and Balance sheet in this presentation are on unconsolidated basis * The Bank prepares semi-annual and annual consolidated financial reports in accordance with the requirements of NBRM 22

23 Financial Performance (IV):Income statement (IFRS) in million EUR 2015* 2016* 2017* Q3 2018* Index 16/15 Index 17/16 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/loss Taxation Profit after tax/loss * * Unconsolidated data 23

24 Financial Performance (V): Balance sheet (IFRS) in million EUR Index Index Index 2015* 2016* 2017* Q3 2018* 16/15 17/16 Q3 18/17 Assets Cash and cash equivalents Customer loans Bank placements and loans Total loans and placements 1, , , , Other assets Total assets 1, , , , Liabilities Total deposits 1, , , , Borrowings & other liabilities Total liabilities 1, , , , Shareholders funds Share capital Share premium Reserves Retained earnings Shareholders funds Total liabilities and shareholders funds 1, , , , * Unconsolidated data 24

25 Financial Performance (III): Financial indicators Financial indicators Q Earnings per share (EPS) Book value (BV) Market price per share (1) Dividend Yield 5.43% 5.21% 6.48% 3.43% Price/Earnings (P/E) (2) Price/Book value (P/B) (2) Price/Total assets (P/A) (2) Market capitalization (in mill. EUR) ) Last traded price 2) Calculation according data in MKD 25

26 2,000 1,800 1,600 1,400 1,200 1, Financial Performance (VI): Total Assets Total assets (1) (in million EUR) 1, , , , % 16% 13% 35% 33% 28% 43% 49% 45% 6% 10% 10% Q Placements to banks Loans to customers Cash and equivalents Other assets 14% 44% 41% 1% (1) Total balance sheet assets (based on net loans after provisions) 26

27 Financial Performance (VII): Gross Loans to Customers Gross loans to customers - Corporate vs Retail (EUR'm) % 77% % % % 74% % 72% Q Corporate loans Retail loans 27

28 Financial Performance (VIII): Liabilities Total Liabilities (EUR'm) 1, , % 1, % 98% 1, % 97% 3% 97% 98% Q Total deposits Borrowed funds & other liabilities (1) Total deposits include deposits from banks which represent 1.6% within total liabilities in September

29 Financial Performance (IX): Deposits Customer Breakdown Deposits by customer category (EUR'm) 1, , , % % 26% 72% 74% 71% 1, % 73% 1, , , , Q Retail deposits Corporate deposits (1) Corporate deposits include deposits from banks which represent 1.6% within total deposits in September

30 Financial Performance (XI): Income Breakdown Income (EUR'm) Q Total income Net interest income Fee and commission income Other income 30

31 Financial Performance (XIII): Expenses Breakdown Operating expenses (EUR'm) % 14% 8% 11% 37% % % 15% 17% 8% 10% 12% 14% 42% 49% % 11% 11% 15% 53% Q Wages, salaries and other employees' costs Depreciation and amortization Other expenses Materials and services Insurance 31

32 Thank you!