Finansbank Overview with Q Financial Results. Investor Relations August 2014

Transcription

1 Finansbank Overview with Q Financial Results Investor Relations August 2014

2 Agenda NBG Group Finansbank Overview Financials Macroeconomic Indicators 1

3 The NBG Group Corporate information The National Bank, with dominant presence in the Greek banking market and strong profile in SE Europe and the Eastern Mediterranean, leads the largest and strongest financial group in Greece The Group operates in 12 countries and controls, apart from NBG, 9 banks and 61 companies providing financial and other services, with a workforce of 35,244 employees serving a market of 125 million residents (data as of ). It has the widest distribution network of products and services than any other Greek bank abroad (1,235 units) and a domestic network of 531 branches and 1,400 ATMs (data as of ). Ratings and shareholder structure Long-term Short-term Financial strength/ Viability Moody s Caa1 NP E S&P CCC+ C Fitch B- B b- Greek pension funds HFSF 57.6% 0.8% 35.5% 0.3% 5.8% International investors Domestic Other investors 2

4 Agenda NBG Group Finansbank Overview Financials Macroeconomic Indicators 3

5 At a glance Ratings and shareholder structure Foreign currency Long-term Short-term Moody s Ba2 NP Fitch BBB- F3 CI BB+ B NBG Group 94.81% 5.00% 0.19% International Finance Corp. Public Corporate information Turkey s 5 th largest private bank with TL 69bn of assets* Highest capital adequacy ratio among peer group private banks at 16.8% Core Tier 1 ratio is at 12.8% (Million) Paid-in capital TRY 2,835 (USD 1,335) Shareholders equity TRY 8,049 (USD 3,791) * According to bank only financials 4

6 Efficient branch network Comprehensive network covering 97% of GDP One of the youngest networks: 7.3 years average age High branch efficiency: TRY 32.7mn retail loans per branch Q2 14 Corporate Commercial Retail Private Joint Branch In-store Collection points Free Trade Zone International Mobile Enpara Wealth Banking Total Geographic footprint Present No Presence Kırklareli Edirne (4) Tekirdağ (9) Çanakkale (4) Balıkesir (7) İzmir (52) Manisa (9) Aydın (8) Muğla (12) Bartın Istanbul (243) Zonguldak Kastamonu Kocaeli (4) Karabük (16) Düzce Yalova Bolu Sakarya Çankırı (7) Bursa Bilecik (29) Ankara Eskişehir (65) (6) Kütahya Uşak Afyon Denizli Isparta (8) Burdur Antalya (32) Konya (12) Kırıkkale Nevşehir Aksaray Niğde Karaman Mersin (13) Sinop Çorum Kırşehir Amasya Tokat Yozgat Samsun (7) Kayseri (11) Adana (17) Hatay (7) Ordu (3) Sivas K.Maraş (4) Osmaniye Kilis Malatya (3) Giresun Adıyaman Gaziantep (10) Trabzon (4) Bayburt Gümüşhane Erzincan Tunceli Elâzığ Urfa (4) Rize Bingöl Diyarbakır (4) Artvin Erzurum Mardin (3) Muş Bitlis Batman Ardahan Ağrı Siirt Kars Şırnak Iğdır Van Hakkâri 5

7 Agenda NBG Group Finansbank Overview Financials Macroeconomic Indicators 6

8 H1 14 financial highlights B/S P&L Total assets recorded a 5% expansion YtD and reached TRY 69.3bn after declining 1% in Q2 14 Net loans increased 7% to reach TRY 45.7bn. SME and commercial loans continued to be the main drivers. Overall non-retail growth reached 20% in H1 14 Securities portfolio rose 5% QoQ, reversing the 3% contraction in the previous quarter Customer deposits declined 6% compared to Q1, bringing the YtD growth down to 2%. Eurobond issued in April and additional wholesale funding substituted for deposits Net interest income declined by 19% YoY to TRY 1,332mn due to elevated interest rates and reclassification of loan filing fees. NIM also came down to 5% from a peak of 7% in H1 13 Net fees and commissions income recorded a 37% growth, mainly as a result of the reclassification of loan filing fees as mentioned earlier Operating expenses were largely under control with a slight 5% increase Net income fell 32% YoY but jumped 67% when compared to the previous quarter. The surge is owed to a one-off revenue from the NPL sale 7

9 Solid financial performance 2013 H1 14 USD million TRY million USD million TRY million B/S Total assets Securities Loans, net Customer deposits Funds borrowed & issuances Shareholders equity 30,928 4,091 20,105 17,327 4,337 3,584 66,010 8,731 42,910 36,980 9,257 7,648 32,659 4,198 21,541 17,715 5,341 3,791 69,348 8,913 45,741 37,615 11,341 8,049 H1 13 H1 14 USD million TRY million USD million TRY million P&L Net interest income Provisions Adjusted NII Net fees and commissions Opex Net Income 908 (288) ,646 (523) 1, , (252) ,332 (535) ,

10 Loan Heavy and Deposit Based Balance Sheet Maturity (Remaining) AFS TRY TRY Yield CPI-linker FRN Fixed 46% 24% 30% 6.4 years 4.3 years 8.9 years 34% 100% 66% 100% 100% 39% 10.0% 10.5% 8.1% 13% 8.9 Securities Maturity Avg. Ticket Size (TRY 000) TRY TRY Cost Maturity (Remaining) Collateral TRY TRY Yield Avg. Ticket Size (TRY 000) Customer Deposits % Retail Corporate 63% 37% 77 days 82 days , % 10.4% 69% 10.7% Corporate &Commercial 18% 2.9 years 30% 47% 13.3% SME 31% 1.7 years 42% 93% 15.2% Mortgage 14% 5.9 years 99% 99% 9.9% Consumer 16% 2.2 years 7% 100% 16.3% Credit Cards 21% 0.2 years - 100% 24.6% % 45.7 Net Loans Wholesale Funding Repo Funding Other 21% 14.7 Other Capital & Misc. Base (Equity & Sub-Debt) % 5% 11% 15% Equity (3) Maturity (Remaining) TRY Cost Syndication 11% 0.4 years 0% 0.9% Eurobond 26% 3.4 years 0% 5.7% TRY bond 18% 0.4 years 100% 10.6% Post finance 31% 0.9 years 0% 2.0% Due to banks 11% 0.1 years 20% 3.4% Securitization 6.4 years 0% 3.7% 3% Maturity (Remaining) TRY Cost Sub-debt 19% 7.0 years 0% 4.8% 81% n.m. 100% - Source: BRSA solo data as of H1 14 Cash and mortgages LTV portfolio avg.: 49.9% (3) Duration of equity is 2.7 years 9

11 Shifting towards SME and commercial segments 50,000 40,000 30,000 20,000 10,000 0 Net loans (TRY million) 4.8% 4.3% 4.4% Market share +24% Loans 45,741 42,910 80% 36,793 60% 40% 20% 0% Q2 14 % Retail SME* Credit Cards Corporate & Commercial Loan breakdown % CC + Retail 63% 57% 51% 33% 31% 30% 24% 28% 31% 30% 26% 21% 13% % % Q2 14 Business segmentation (By annual turnover) Corporates > TRY 300mn Commercial companies TRY 20mn-300mn SME TRY 2mn-20mn Micro < TRY 2mn Auto Overdrafts General purpose Mortgages Retail loans 6% 1% 7% 1% 10% 0% 40% 42% 44% 53% 50% 46% Q2 14 * According to BRSA definition, SME segment is up to TRY 40mn annual turnover 10

12 Higher coverage for better risk management NPL provisioning TRY 912mn reserved in general provisions Historic NPL sale of TRY 786mn since Sep 11 till Q2 14 5,000 4,000 3,000 2,000 1, % 76% 75% 85% 2,513 83% 2,966 80% 2, Q % 80% 60% 40% 20% 0% % Specific provisioning ratio NPL (TRY 000) Private banks specific provisioning ratio New NPL sale of TRY 826.3mn in Q2 14 NPL ratio by segments 15% 10% 5% 0% 6.5% 2.0% 6.5% 8.9% 9.5% 7.1% 6.1% 5.1% 4.9% 1.5% 5.3% 4.0% 1.1% 5.4% 4.2% 6.1% 4.4% Q % 7% 6% 5% 4% 3% 2% 1% 0% Corporate Commercial Credit cards Retail SME Total NPL ratio 11

13 Growing deposit base TRY million By type By segment +18% +18% Demand deposits Time deposits 31,874 11% 89% 36,980 16% 84% 37,615 16% 84% Corporate deposits Retail deposits 31,874 40% 60% 36,980 38% 62% 37,615 37% 63% Q Q2 14 Loans/Deposits Loans 80,000 60,000 40,000 20, % 116% 122% 116% 106% 110% 42,910 45,741 36,793 36,980 37,615 31, Q % 120% 100% 80% 60% 40% 20% Deposits Loans/Deposits L/D+TL Bonds 12

14 Strong capital and high liquidity Free funds (TRY million) Capital adequacy ratio (TRY million) Free capital* 9,052 63% 11,672 50% 11,080 47% 100,000 80,000 60,000 40, % 46, % 56, % 60,625 20% 15% 10% Demand deposits 50% 37% % Q , , , ,181 Q2 14 5% 0% RWA Total Tier I and Tier II capital CAR The new Basel III compliance had a 15bps positive effect on CAR Core Tier 1 ratio is at 12.8% * Free capital = Shareholders Equity (Subsidiaries + Fixed Assets + Unprovisioned NPL) 13

15 High margins with strong fee income growth Breakdown of interest income NIM evolution (bps) H1 13 H2 14 Securities Banks Securities Banks 7.9% 12.1% 0.3% 0.8% 91.8% 87.1% Loans Loans H1 14 Breakdown of net fee income (TRY million) +43% Credit Cards % Other banking commissions Cash and non-cash loans POS Transaction Fees 44% 7% 4% 22% 16% 8% 44% 10% 15% 4% 11% 17% 3% 16% 13% 13% 8% Deposit account maintenance fee Insurance operations H1 12 H1 13 * Cash loan fees are included beginning from January 1, H

16 Funding position Type of borrowing (million) Maturity Outstanding principal DPR Securitisation February 15 USD 1 3 Tenor Years TRY Bond August 14 TRY TRY Bond March 15 TRY TRY Bond October 14 TRY TRY Bond March 15 TRY TRY Bond March 15 TRY TRY Bond August 14 TRY TRY Bond September 14 TRY TRY Bond October 14 TRY TRY Bond October 14 TRY TRY Bond April 15 TRY TRY Bond April 15 TRY Eurobond May 16 USD Eurobond November 17 USD Eurobond April 19 USD Private placement July 15 USD 40 1 Private placement January 15 USD Type of borrowing (million) Maturity Outstanding principal Syndicated Term Loan USD Tranche November 14 USD Syndicated Term Loan EUR Tranche November 14 EUR DPR Securitisation November 17 USD 75 5 DPR Securitisation November 17 EUR 10 5 Tenor Years DPR Securitisation November 24 EUR Subordinated Debt from NBG October 20 USD Subordinated Debt from NBG October 21 USD EIB November 19 USD 13 7 EIB December 15 EUR EIB October 17 EUR EIB December 15 EUR EIB May 16 EUR Subordinated Debt from NBG December 21 USD Subordinated Debt from NBG December 21 USD EIB November 20 USD EIB March 21 USD EIB April 21 USD

17 Agenda NBG Group Finansbank Overview Financials Macroeconomic Data and Forecasts 16

18 Macroeconomic data Economic Growth F GDP growth (%) Prices and Interest Rates F CPI (period-end, %) PPI (period-end, %) Policy rate (period-end, %) External Balance F C/A / GDP (%) Fiscal Policy F Primary balance / GDP (budget) (%) Debt Stock F EU def. public debt / GDP (%) Foreign Currency F TRY/US$ (period-end) TRY/EUR (period-end) Credit Rating S&P BB+ (outlook negative) Moody s Baa3 (outlook negative) Fitch BBB- (outlook stable) Source: Turkstat, Treasury, Ministry of Finance, CBRT, SPO, Finansbank 17

19 Disclaimer Finansbank A.Ş. (the Bank ) has prepared this Presentation for the sole purposes of providing information which include forward looking projections and statements relating to the Bank (the Information ). No representation or warranty is made by the Bank for the accuracy or completeness of the Information contained herein. The Information is subject to change without any notice. Neither the Presentation nor the Information can construe any investment advise, or an offer to buy or sell the Bank s shares. This Presentation and/or the Information cannot be copied, disclosed or distributed to any person other than the person to whom the Presentation and/or Information delivered or sent by the Bank or who required a copy of the same from the Bank. Finansbank A.Ş. expressly disclaims any and all liability for any statements including any forward looking projections and statements, expressed, implied, contained herein, or for any omissions from Information or any other written or oral communication transmitted or made available 18