Facts & Figures September 30, 2017

Transcription

1

2 Credit Standing of Latvia On September 22, 2017 Standard&Poor s affirmed the Republic of Latvia s foreign and local currency long-term sovereign credit rating at A- and revised the rating outlook to positive from stable. The outlook revision reflects Standard&Poor s expectation that Latvia's current fast economic expansion will be coupled with structural improvements of the country's labor market, which would help sustain higher income levels following the current cyclical surge in growth. On July 14, 2017 Moody s affirmed the Republic of Latvia s foreign and local currency long-term sovereign credit rating at A3. The outlook is stable. On October 27, 2017 Fitch affirmed the Republic of Latvia s long-term foreign-currency issuer default rating at A-. The outlook is stable. 2

3 Banking Sector in Latvia Gross Assets ABLV is No. 3 by the volume of total assets Total number of banks in Latvia: 23 No Name of the Bank EUR`000 Change YTD, % Market share, % 1 Swedbank 5,100, % 2 SEB banka 3,680, % 3 ABLV Bank 3,648, % 4 Rietumu Banka 3,092, % 5 Citadele banka 2,578, % 6 Nordea Bank AB Latvijas filiāle 2,384, % 7 DNB banka 2,302, % 8 NORVIK BANKA 888, % 9 BlueOrange 593, % 10 Danske Bank filiāle Latvijā 509, % Banking sector in total 27,523, Data source: Association of Latvian Commercial Banks 3

4 Banking Sector in Latvia Deposits ABLV ranks No. 2 by the volume of total customers deposits No Name of the Bank EUR`000 Change YTD, % Market share, % 1 Swedbank 4,241, % 2 ABLV Bank 2,675, % 3 SEB banka 2,312, % 4 Rietumu Banka 2,207, % 5 Citadele banka 2,074, % 6 Nordea Bank AB Latvijas filiāle 1,722, % 7 DNB banka 1,133, % 8 NORVIK BANKA 684, % 9 BlueOrange 479, % 10 Danske Bank filiāle Latvijā 353, % Banking sector in total 19,816, Data source: Association of Latvian Commercial Banks 4

5 Banking Sector in Latvia Loans ABLV ranks No. 7 by the size of gross loan portfolio In recent years ABLV focuses on commercial loans No Name of the Bank EUR`000 Change YTD, % Market share, % 1 Swedbank 3,316, % 2 SEB banka 2,605, % 3 Nordea Bank AB Latvijas filiāle 1,999, % 4 DNB banka 1,456, % 5 Citadele banka 1,224, % 6 Rietumu Banka 1,205, % 7 ABLV Bank 1,020, % 8 Danske Bank filiāle Latvijā 358, % 9 NORVIK BANKA 250, % 10 BlueOrange 144, % Banking sector in total 14,546, Data source: Association of Latvian Commercial Banks 5

6 History The bank was founded on 17 September 1993 on the basis of the Bank of Latvia regional branch The bank s controlling interest is held by Ernests Bernis and Oļegs Fiļs since 1995 The management team has been with the Bank since 1995 and has obtained extensive experience in the banking industry, overcoming the crises of 1998 and 2008 In 2008, the bank adopted new strategy focused on private banking emphasizing development of tailored financial solutions for customers Currently, ABLV Bank, AS is the largest independent private bank and the second largest bank by assets in Latvia with 12 representative offices of the Group in various CIS countries, Cyprus, Hong Kong, USA and the subsidiary bank ABLV Bank Luxembourg, S.A. located in Luxembourg 6

7 ABLV Shareholders Total number of shareholders with voting rights is 138 Ernests Bernis and Nika Berne (direct and indirect interest) 43.51% Other shareholders 9.18% Olegs Fils (indirect interest) 43.52% Other employees (direct and indirect interest) 3.79% Shareholders with non-voting shares (personnel shares) are 36 7

8 The core business activities of ABLV Group ABLV Bank Luxembourg, S.A. ABLV Bank, AS Banking ABLV Asset Management, IPAS ABLV Capital Markets, IBAS New Hanza Capital, AS ABLV Consulting Services, AS ABLV Corporate Services Holding Company, SIA ABLV Advisory Services, SIA ABLV Corporate Finance, SIA Pillar Development, SIA Pillar Management, SIA Pillar Holding Company, KS ABLV Building Complex, SIA Investment Advisory Real estate 8

9 Strategy of ABLV Group Banking services Private banking services Corporate banking services Commercial lending Financing against pledge of investment portfolio Investment management services ABLV Bank funds investment in proprietary securities portfolio, which has been successfully managed for 20 years Brokerage and custody services provided to ABLV Group clients by ABLV Capital Markets, IBAS Asset management services provided to ABLV Group clients by ABLV Bank Luxembourg, S.A. Management of mutual investment funds by ABLV Asset Management, IPAS aiming to offer investment services to ABLV Group clients New Hanza Capital, AS is investing in commercial property with stable cash flow and dealing with real estate funds foundation and management Advisory services Tax consulting Legal consulting Business structuring, asset protection; Overtaken property management and investments in real estate Management of real estate overtaken from clients during the crisis, as well as preparation for sale and realization Investments in the project New Hanza development of 20 ha large area in Riga 9

10 ABLV Bank Funding ABLV Bank, AS is a participant of NASDAQ Riga (since March, 2012) and regularly issues bonds that are publicly traded on the stock exchange Funding split by type Non-resident deposits 68.8% Issued ordinary securities 10.2% Total shareholder's equity 9.5% Resident deposits 5.5% Subordinated debt 3.7% TLTRO 1.4% Bank's deposits 0.8% Distribution of customers by residency (by deposit volume) Ukraine 21.2% Latvia 6.1% Uzbekistan 6.3% Belarus 4.4% Moldova 3.2% Azerbaijan 2.6% Russia 43.1% Other 13.2% 10

11 Securities Portfolio Germany 14.3% Latvia 13.3% Russia 10.9% Total volume of bank's proprietary securities portfolio reaches EUR 1.66 billion (including securities from Loans and receivables portfolio) from which 98.7% with fixed income United States of America 32.6% Sweden 6.2% Canada 4.6% Finland 3.6% Austria 2.2% Other (less than 2% each) 12.3% Split by type: Available-for-sale 50.1% Held to maturity 48.5% Trading 0.9% Loans and receivables 0.5% Sovereign & sovereign enterpr. 77.5% Financial institutions 7.8% Corporates 10.6% Local governments 3.0% Other 1.1% 11

12 Securities Portfolio Portfolio is conservative, the weighted average rating of the securities in the portfolio is AA- Yield of the portfolio: % % % M 2.5% Performance Target Investment grade BBB- / higher 88.7% >=70% AA- / higher 66.2% >=50% Weighted average modified duration of portfolio is including income from VISA share buyback 12

13 Gross Loan Portfolio 1 Mortgage loans 30.4% Financing against pledge of investment portfolio 7.8% Commercial loans 55.4% Other loans 6.4% 1 excluding securities from Loans and receivables portfolio 13

14 Gross Loan Portfolio Development (EUR 000) Mortgage loans Commercial loans Financing against pledge of investment portfolio Other loans Dec, 2013 Dec, 2014 Dec, 2015 Dec, 2016 Sep, excluding securities from Loans and receivables portfolio 14

15 Gross Loan Portfolio (EUR 000) Allowances for credit losses are 1.3% of gross loan portfolio Q Gross loans* Allowances for credit losses *excluding securities from Loans and receivables portfolio 15

16 Non-Performing Loans (NPL) (EUR 000) Non-performing loans are 7.1% of gross loan portfolio on 30 September, 2017 Non-performing loans are loans with payments overdue by more than 90 days and/or impaired loans, or loans that are planned to be forwarded for collection by way of forced disposal of collateral, and loans with disposed collaterals Q Gross non-performing loans Allowances for NPL losses 16

17 Capital, Liquidity and Other Ratios CET million EUR Total equity million EUR T1/CET1 Capital ratio 16.68% Capital adequacy ratio 22.94% Liquidity Ratio 75.87% ROA 1.44% ROE 16.68% 17

18 Balance Sheet Assets (EUR 000) Assets (non-audited) (audited)¹ Cash and deposits w ith Bank of Latvia 405, ,047 Balances due from credit institutions 365, ,504 Financial assets held for trading 14,707 21,090 Available-for-sale financial assets 832, ,094 Loans to customers 1,006,411 1,001,929 Loans and receivables (securities) 7,857 10,217 Held to maturity investments 806, ,710 Investment properties 15,223 25,058 Investments in subsidiaries and associates 151, ,580 Other assets 19,713 21,357 Total assets 3,626,177 3,849,586 1 Information has been prepared based on data that are available in the annual reports for the year ended 31 December 2016 and 31 December 2015 audited by SIA KPMG Baltics (No ). 18

19 Balance Sheet Liabilities and Shareholders Equity (EUR 000) Liabilities (non-audited) (audited)¹ Balances due to Bank of Latvia 50,000 50,000 Balances due to credit institutions 30,242 20,375 Financial liabilities held for trading Financial liabilities at amortised cost 3,167,536 4,366,864 Deposits 2,667,582 2,901,824 Issued ordinary bonds 367, ,385 Issued subordinated bonds 120, ,919 Subordinated deposits 12,451 14,810 Other liabilities 36,894 12,029 Total liabilities 3,284,958 3,527,783 Total shareholders' equity 341, ,803 Total liabilities and shareholders' equity 3,626,177 3,849,586 1 Information has been prepared based on data that are available in the annual reports for the year ended 31 December 2016 audited by SIA KPMG Baltics (No ). 19

20 Income Statement (EUR 000) (non-audited) (non-audited) Net interest income 44,718 46,496 Net commision and fee income 18,454 24,667 Income from dividends 3,433 5,383 Net gain on transactions w ith financial instruments and foreign exchange* 13,153 37,951 Other income 6,421 2,735 Other expense (1,115) (1,159) Impairment on financial assets (577) (7,041) Operating incom e 84, ,032 Administrative expense (39,344) (43,833) Amortisation and depreciation (2,332) (2,381) Corporate income tax (1,974) (1,461) Net profit 40,837 61,357 1 Including profit from VISA Europe Ltd. share buyback transaction 20

21 Income Structure % 7.4% 8.6% 6.0% 6.2% 20.3% 17.0% 15.6% 30.5% 16.2% 36.6% 33.7% 29.5% 21.1% 22.7% 39.1% 41.9% 46.3% 42.4% 54.9% M 2017 Net other operating income Net gains/ losses on financial instruments and foreign exchange Net commission fee income Net interest income 21

22 Income Structure (EUR 000) Interest income consists of income from the loan portfolio and securities portfolio Important source of income for the bank has always been currency exchange operations. Efficient and well priced transactions on behalf of our customers generate large part of net gains on financial assets Commission fee income mainly consists of payment fees, account maintenance fees and commissions on payment card services M 2017 Net other operating income Net gains/losses on financial instruments and foreign exchange Net commission fee income Net interest income 22

23 Strategic Indicators Target Actual 30-Sep Dec-16 ROE > 15% 16.7% 27.3% ROA > 1.20% 1.4% 1.9% Cost / income ratio < 50% 49.0% 40.0% Capital adequacy ratio 22.9% 19.6% T1/CET1 Capital ratio 12.75% 16.7% 12.9% Loan portfolio / assets < 33% 28.0% 26.1% HTM (excluding accrued income) / assets < 30% 22.1% 25.5% AFS (excluding accrued income) / assets < 50% 22.7% 24.6% Ordinary bonds / Long-term loan portfolio > 50% 44.7% 53.5% Assets (EUR `000) Interest income (EUR `000) Commission fee income (EUR `000)

24 Thank you!