CONTENTS. Introduction to HFG Fundamentals KEB Acquisition DISCLAIMER

Transcription

1 Financial Group This information contained in this presentation material is not audited by a third party independent auditor and is subject to change.

2 CONTENTS Introduction to HFG Fundamentals KEB Acquisition DISCLAIMER This material is for informational purposes only. The information and statements may constitute forward looking statements which represent current expectation or forecasts of future results. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions. Actual outcomes and results may differ materially from those expressed or implied in any of these forward looking statements. Accordingly, Financial Group, its subsidiaries, and related affiliates do not accept liability from actual outcomes related to this information and statements contained in this material.

3 Introduction to HFG History Corporate Timeline Top Financial Group in Korea Recognition Business Line of HFG Core Competencies of

4 History 1971~ ~ ~ ~ ~ ~01 Inception as Korea Investment Finance Corp. in 1971 In No. 1 Underwriter of Corporate Bond In 1991 converted to a commercial bank with a nation wide branch Network Launched Credit Card Business in 199 Korea s Best Bank Award by Euro-money in 1993 Acquisition of Chungchong Bank in 1998 Merger with Boram Bank in 1999 Merger with Seoul Bank in 00, becoming Korea s 3rd largest bank Launched Life Insurance in 003 Establishment of Financial Holding Company in Dec. 005 Acquisition of Daetoo Securities in May 005 Launched Bank China in Dec.007 Launched PT Bank (Indonesia) in Dec.007 Established UBS Asset Management in May 007 Established HSBC Life Insurance in Mar 008 Reorganized HFG to Matrix Structure in Mar. 008 Merged Daetoo Securities & IB Securities in Dec. 008 Established Credit Card JV with SK Telecom in Dec. 009 Acquisition of Daol Trust in Mar. 010 Acquisition of 18.7% share of Bank of Jilin in May 010 Signed SPA with Lone Star for KEB share acquisition in Nov 010 Signed on MOU with China Merchants Bank in Jan 011 Acquisition of 57.7% share of KEB in Feb 01 4

5 Corporate Timeline (Unit: Wtn) 01~ 008~010 KEB Acquisition 005~006 Successfully weathered financial crisis Reorganized into Financial Group Established credit card JV with SKT Established as Korea Investment Finance Corp Acquired Chungchong Bank 1999 Merger with Boram Bank Merger with Seoul Bank Acquired Daetoo Securities Q 1) Group total assets include trust accounts 5

6 Top Financial Group in Korea 1. Leading Group in Korea * Total assets: KRW 35.3 trillion (including Trust Account) 6.Leading Private Banking Business 1. Broad Distribution Network 1 6 Ranked #1 by Euromoney * Total # of bank branches: 1,01 (including KEB) 5. High Credit Ratings ( Bank) Stable Asset Quality NPL S&P: A Moody s: A1 4 Group NPL: 1.7% 4. Strong Capital Base * Group BIS CAR: 11.64% Group Tier-1 CAR: 8.75% 6

7 Recognition Major Awards 007~ 008 Best Fund Sales Securities Firm 005~ 011 Best Private Bank in Korea 009 International Business Leadership Award 00 Best Domestic 003 New Century 004 #1 Customer M&A Case Leader Satisfaction in Asia Bank in Korea 1997 Best Bank 1998 Best Bank 001 #1 Customer in Korea in Korea Satisfaction Bank in Korea 7

8 Business Line of HFG Financial Group Inc. Bank (100%) KEB (60.00%) SK Card I&S Institute of Finance Capital HSBC Life Daetoo Securities Daol Trust (51%) (100%) (100%) (50.1%) (50%+1share) (100%) (65%) Savings Bank (100%) Bank China (100%) PT Bank (75.1%) KEB Capital (100%) KEB Futures KEB Investor Services (100%) (99.31%) UBS 1) Asset Mgt. 1 (49.9%) 1) UBS excluded from group consolidated basis Distribution Channel Bank, KEB Daetoo Securities (AM) Group s main distribution channel Four decades of financial expertise in brokerage, fund services, & asset management Product Development SK Card Daetoo Securities (IB) UBS Asset Management HSBC Life Insurance Capital Daol Trust Convergence of Financial & Telecom synergies to develop new growth platform Providing specialized IB products & services Leading asset management company Optimal insurance products & services Retail financing-related specialty product development Comprehensive real-estate trust services Strategy & Support Financial Group Institute of Finance I&S Group s strategic & financial planning Group s think tank & research center Group s IT support 8

9 Core Competencies of Corporate Governance Full disclosure of Group s vision and strategic direction to stakeholders Independence imparted to Board of Directors (Of the total 15 BOD members 11 are non-executives directors) Corporate Culture Integrity employees uphold as defining value Autonomy Strong sense of responsibility and accountability Flexibility Adaptive to the changing needs of customers and the market place Teamwork Foster environment of cooperation and mentorship to produce optimal financial products and highest quality of customer service Openness Successful track record of partnerships with major global & domestic players (UBS, HSBC, SKT, Kolon Group) Localization strategy implemented for strong franchise in foreign markets (PT Bank Indonesia Employees 98% locals) Market Based Competitiveness Customer centric focus Delivering products & services by assessing market trend Established Matrix Structure to adapt quickly to market conditions (First domestic company to implement Business Unit Model) 9

10 Fundamentals Resilient Performance

11 Resilient Performance Net Income NIM KRW Loans Group (Consolidated) Unit: wbn Group Unit: wbn Group Unit: Wbn NIM Int. Income 1,30 NGW 1,039*.4%.31%.7%.06%.18% (Incl. KEB ).01% (Excl. KEB) 14, ,040 9,00 9,784 97,704 97,44 1Q11 Q11 3Q11 4Q11 1Q1 *Negative Goodwill 1Q11 Q11 3Q11 4Q11 1Q1 1Q11 Q11 3Q11 4Q11 1Q1 NPL Ratios Group Delinquency Ratios Group Credit Cost Group 1.65% 0.70% 0.74% 1.30% 1.1% 1.7% 0.61% 0.63% 0.63% 1.1% 0.57% 0.4% 0.36% 0.43% 0.49% 1Q11 Q11 3Q11 4Q11 1Q1 1Q11 Q11 3Q11 4Q11 1Q1 1Q11 Q11 3Q11 4Q11 1Q1 11

12 KEB Acquisition Scaling Up And Standing Tall Among Peers Optimal Complementary Business Fit Synergy Creation Progress Adding to Strategic Global Growth

13 Scaling Up And Standing Tall Among Peers Total Assets* (Group) (Wtn) KRW Loans (Bank) (Wtn) Total Deposits (Bank) (Wtn) As of end of December. 011 As of end of December. 011 As of end of December WFG SFG H+K KB KEB *Excluding trust assets KB H+K Woori Shinhan KEB KB Woori H+K Shinhan KEB Domestic Branches (Bank) Foreign Branches (Bank) Staff (Bank) As of end of December. 011 As of end of December. 011 As of end of December ,165 1, ,718 16,945 15,011 14, ,55 7,690 KB H+K Shinhan Woori Hnan KEB H+K Shinhan Woori KB KEB KB H+K Woori Shinhan KEB 13

14 Optimal Complementary Business Fit Business Portfolio Analysis Business portfolio Retail, PB KEB Corporate, FX HFG+KEB Scale, Competency Indicators Household Loan 5 8 Balance PB 4 1 Deposits Balance Card Sales Volume Bancassurance 3 5 Fee Income Brokerage 10 N/A 10 Fee Volume Large Corp. Loan 5 7 Balance SME Loan Balance Non KRW loan 7 3 Balance FX Transaction Volume Trade Finance Transaction Volume IB N/A Fee Volume Fund Sale Asset Mangt Capital N/A Sales Volume AUM Asset Volume Top 3 business areas Areas exceeding GDP growth 14

15 Synergy Creation Progress Category Risk IT Differing credit ratings of overlapping borrowers Integrating IT infrastructures Reviewing IT business plans Planning IT combined purchases Progress A credit rating system in the making for overlapping corporate clients of Bank and KEB Talks in progress of forming an initial IT infrastructure for full system integration Both Bank s and KEB s IT project plans in review to prevent redundancy and set up joint development projects Joint maintenance & repair contracts, joint use of telecommunications lines, and other means of combined management are being explored Combined use of ATMs Done Combined access to card merchants Already Integrated the merchant networks of SK Card and KEB Business Cross-selling bancassurance products Cross-selling ELS products Custody of funds Contracts in development on sale of HSBC Life Insurance products through KEB s channels and necessary computerized systems Contracts in development on sale of Daetoo s ELS products and necessary computerized systems Talks in progress of entrusting the management of funds of UBS Asset Management, Daol Trust, and HSBC Life Insurance through KEB s fund services 15

16 Adding To Strategic Global Growth 17