Company Presentation

Transcription

1 1

2 Company Presentation May

3 WELCOME TO Caja Rural Castilla-La Mancha 3

4 COMPANY Profile 4

5 Company Profile Caja Rural de Castilla La Mancha was born 27th February 1963 under the name of Caja Rural Provincial de Toledo with 100% cooperative vocation and a local orientation. Throughout its history the local area orientation has been developed to nationally. In 2011 the Company was renamed to Caja Rural de Castilla la Mancha Branches (March 2015) 373 Branches 5

6 Company Profile Business area Population Castilla la Mancha + Madrid : 8,440,078 (December 2014) GDP per capita Castilla la Mancha + Madrid: 27,901 euros (December 2014) GDP per capita Spain : 22,780 euros (December 2014) GDP Castilla la Mancha: 0.3% (increase in 2014) GDP Madrid: 1.60% (increase in 2014) Source: INE 6

7 Company Profile Like much of the Spanish cooperative sector, the origins of the Company are located in the rural and agricultural sector. However, the recent economic and social developments in Spain has pushed the Company to extend its activities to other sectors, all related to retail banking. Currently, agricultural sector lending represents 4.94% of the total loans book. The business model is based on risk control, transparency, solvencyand a strong link with their local area of implantation. The growth and evolution of the Company is the result of the demand for competitive services and quality of current and potencial customers. The Company has expanded and diversified its business while maintaining strong risk management standards. Strong local franchise, with a deposit market share of roughly 11% for deposits and 6% for loans in Castilla La Mancha (26,6% and 12,2% respectively in Toledo). The franchise has strenghthened in its home markets in past years as a result of the consolidation and restructuring of the Spanish banking sector which has reduced the number of competitors. 7

8 Company Profile The business focuses on the retail business, mainly serving the cooperative members financial needs, individuals and SME s mainly. Around 70,000 cooperative members (shareholders), with a wide representation of different sectors of our economy and society. Around 400,000 clients distributed throughout the provinces in which the Company operates. 373 branches, distributed throughout the región of Castilla la Mancha, Madrid and Avila. Castilla la Mancha and Madrid represent % of the loan book. 8

9 Company Profile The following subsidiaries and Caja Rural de Castilla la Mancha are a consolidated group of credit institutions denominated Caja Rural de Castilla la Mancha Grupo Económico. Caja Rural de Castilla La Mancha SCC Castilla La Mancha Servicios Tecnológicos SLU Rural Patrimonios Agrupados SICAV, SA CRCLM Mediación Operador Banca y Seguros Vinculado SL Viveactivos SAU CRCLM Sociedad de Gestión de Activos SAU Rural Broker SL 9

10 KEY Figures 10

11 Key Figures Millions of euros 2015 Total Assets 7,352 Loans 2,998 Deposits 4,359 Other off - balance client s assets 427 Total capital ratio phase in / fully loaded 14.58% / 16.29% CET1 phase in / fully loaded 13,58% / 15,30% Non performing loans / Coverage 3.17% / % 90+ days arrears (Cover Pool) 3.45% 90+ days arrears (Residencial Cover Pool) 2.12% Issuer Rating BBB (Fitch affirmed on 30 th October 2015) Caja Rural Castilla la Mancha Grupo Economico Figures 11

12 Key Figures Millions of euros Assets 7,352 6,669 5,475 4,663 4,064 Loans 2,998 2,898 2,472 2,292 2,337 Deposits 4,359 3,952 3,440 2,915 2,740 Off balance client assets Eligible capital Thereof core capital tier Millions of euros Net interest income Gross margin Administrative Expenses Earnings of operating activities Earnings before tax Consolidated earnings Cost-Income ratio (CIR) 60.28% 59.72% 54.56% 57.36% 69.57% Solvency ratio 14.58% 13.11% 14.02% 12.82% 15.03% Thereof core capital tier % 12.21% 12.53% 11.59% 13.58% Non performing loans 3.17% 3.33% 3.94% 2.75% 2.30% NPL coverage ratio % % 91.78% % 93.00% Employees Branches Caja Rural Castilla la Mancha Grupo Economico Figures 12

13 FINANCIAL Highlights 13

14 Financial Highlights As a result of its prudent credit policy and strict selection criteria, the Company NPL ratio has historically been very low. (3.16% at December 2015) 16.00% 14.00% Non performing loans ratio 12.00% 10.00% 10.12% 8.00% 6.00% 4.00% 2.00% 0.00% 0.81% 3.16% 0.50% Non perfofmance loans ratio CRCLM Non performance loans ratio banking sector Source: CRCLM The coverage of NPL asset s of the Company is above 100% of the book. (109.58% at December 2015) 14

15 Financial Highlights Non performing loans ratio 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% CRCLM CRCLM Spain Germany Italy France United Kingdom Source: CRCLM and WB 15

16 Financial Highlights Customer loans Real Estate 1.86% Construction sector 0.97% Corporates 0.57% SME s 20.61% Individuals 69.28% Public Sector 6.71% Source: CRCLM Low exposure to Real Estate Developers (1.86% of total loans December 2015). In regions with a much more stable housing market due to regional economic conditions and the absence of a tourism related building boom. 16

17 Financial Highlights Customers credit guarantee Secured Rights; 79.41% Personal Guarantee; 20.59% Source: CRCLM 79.41% of credit customers are in secured rights. The Company maintains a basic principle of caution in granting operations. Secured rights customers credit 90.00% 80.00% 79.51% 79.09% 81.49% 79.41% 70.00% 60.00% 56.16% 54.59% 55.13% 53.15% 50.00% 40.00% Rem guarantees Rem guarantees banking sector Source: CRCLM and market data 17

18 Financial Highlights Customers loans Average loan balance by customer below 150,000 (Dec 2015) Other 43.04% Loan balance < 150, % Source: CRCLM Customers loans Average loan balance by customer below 150,000 (historical data) Dec 2015 Dec 2014 Dec 2013 Dec 2012 Dec 2011 Dec 2010 Number of clients with loan balance below 150,000 91,61% 89,76% 89,83% 89,05% 88,84% 89,41% Average balance by customer Source: CRCLM 18

19 Financial Highlights NIMS + fees ( thousands) 120, ,000 80,000 60,000 40,000 20, NIMS + Fees Source: CRCLM Market Share (deposits in Toledo) 29.00% 27.00% 25.00% 23.00% 21.00% 19.00% 17.00% 15.00% Market Share Deposits Toledo Source: CRCLM 19

20 Liquidity Management Deposit taking ( thousands) 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500, Deposit Taken Source: CRCLM Loan book ( thousands) 3,200,000 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400, Source: CRCLM Loan Book 20

21 SOLVENCY 21

22 Solvency The Company maintains a high and stable level of solvency. (Total capital ratio of 14.58% / Ratio CET 1 of 13.58%. December 2015). Co -operative by laws require the yearly surplus to become part of undistributable reserves, resulting in a high capitalisation over the years. Solvency Ratio 16% 15% 14% 13% 12% 12.28% 13.06% 14.58% 15.03% 12.82% 14.02% 13.11% 14.58% 11% 10% 9.32% 10.14% 10.46% 9% 8% 7% 6% Source: CRCLM High quality solvency ratio, with CET1 accounting for 93.14% of Total Capital Ratio. 22

23 CET1 Solvency. Problem Loans vs CET % % % % % % % 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Non performance loans Source: Market data and CRCLM. Cut off Dec Caja Rural de CLM 2 BBVA 3 Bankia 4 Caixabank 5 Banco Popular 6 Banco Sabadell 7 Caja Rural de Navarra 8 Ibercaja 9 Banco Mare Nostrum 10 Liberbank 11 Cajamar 12 Banco Santander 13 Caja Laboral Non performing loans ratio is 3.16% (December 2015). Coverage ratio of non performing loans at December 2015 is %. Total repossessed asset amount only to Eur million at December (Land 0.69 %) 23

24 RATINGS 24

25 Ratings Caja Rural de Castilla la mancha is rated by Fitch Ratings Spain and assigned a rating of BBB Stable (June Affirmed October 2015) Fitch reports highlights The Viability Rating (VR) reflects the entitiy s good asset quality indicators relative to peers, in part reflecting adequate underwriting standards applied by CRCLM over the cycle, and solid capital and liquidity SPANISH RATINGS BANK NAME FITCH OUTLOOK FITCH BANCO SANTANDER SA A- STABLE BANCO BILBAO VIZCAYA ARGENTARIA A- STABLE CAJA RURAL DE NAVARRA BBB+ STABLE CAIXABANK SA BBB POSITIVE KUTXABANK SA BBB POSITIVE CAJA RURAL DE CASTILLA LA MANCHA BBB STABLE BANCO COOPERATIVO ESPAÑOL BBB STABLE UNICAJA BANCO SA BBB- STABLE BANKIA SA BBB- STABLE IBERCAJA BANCO SA BB+ POSITIVE LIBERBANK BB STABLE BANCO MARE NOSTRUM SA BB STABLE BANCO POPULAR ESPAÑOL BB- POSITIVE CAJAS RURALES UNIDAS SCC BB- STABLE 25

26 Ratings The rating agency Moody s has rated the Company credit quality of the Mortgage Covered Bond Programme and assigned a rating of Aa2 Stable ( August 2015), the highest credit rating for a Mortgage Covered Bond Programme can get in Spain. Moody s reports highlights: The issuer s credit strength (issuer rating). The robustness of the Spanish legal CH s framework. The framework s strengths includech holders priority security claim over the bank s whole pool of mortgages (the total cover pool); the restriction on issuing CH s to a máximum of 80% of the portion of loans regarded as eligible mortgages (eligible cover pool), which provides for a minimum 25% over colateralisation for issuance purposes; and the fact that CH s do not have to be accelerated because of insolvency proceedings. The cover s pool Credit quality. The cover pool comprises commercial and residential mortgage loans granted to Spanish borrowers and secured on properties in Spain with a weighted average unindexed loan to value (WA LTV) of 55.60%. 26

27 Ratings The level of over collateralisation required to maintain the current rating is 27% based on the total cover pool. The curren level of over collateralisation is aproximately % based on the total pool and 223,14% based on the eligible pool as of March SPANISH COVERED BONDS NAME MOODY S OUTLOOK BANCO SANTANDER SA Aa2 STABLE BANCO BILBAO VIZCAYA ARGENTARIA Aa2 STABLE CAJA RURAL DE CASTILLA LA MANCHA Aa2 STABLE BANCO POPULAR ESPAÑOL Aa2 STABLE CAJA RURAL DE NAVARRA Aa2 STABLE CAIXABANK SA Aa2 STABLE KUTXABANK SA Aa2 STABLE BANKIA SA A1 STABLE LIBERBANK A2 STABLE IBERCAJA BANCO SA A2 STABLE 27

28 COVER Pool 28

29 Cover Pool TOTAL PORTFOLIO 30/09/ /03/2016 Total mortgage cover pool 1,977,235 2,012,432 Number of loans 23,162 23,755 Number of debtors 36,151 37,077 Elegible cover pool 1,590,721 1,615,711 Average loan size Maximum CB issuance (80% eligible) 1,272,577 1,292,569 Average LTV 54.63% 54.63% Average seasoning (months) Average remaining maturity (years) Average rate 2.00% 1.82% 90+ days arrears (cover pool) 3.69% 3.48% 90+ days arrears (residencial cover pool) 2.25% 2.16% Outstanding covered bonds (Issued 01/10/2015) 500, ,000 Total overcolateralization % % Eligible overcolateralization % % Thousands of euros Cut off March

30 Cover Pool RESIDENTIAL POOL COMMERCIAL POOL 30/09/ /03/ /09/ /03/2016 Total amount 1,613,367 1,649,145 Total amount 363, ,287 Number of loans 19,516 20,107 Number of loans 3,646 3,648 Number of debtors 32,807 33,711 Number of debtors 3,344 3,366 Elegible cover pool 1,332,489 1,340,310 Elegible cover pool 258, ,401 Average loan size Average loan size Average LTV 56.88% 57.15% Average LTV 44.67% 43.18% Average seasoning (months) Average seasoning (months) Average remaining maturity (years) Average remaining maturity (years) Average rate 1.82% 1.65% Average rate 2.80% 2.58% 90+ days arrears 2.25% 2.16% 90+ days arrears 10.07% 9.50% Thousands of euros Cut off March

31 Eligible Cover Pool ELIGIBLE PORTFOLIO 30/09/ /03/2016 Total amount 1,590,721 1,615,711 Number of loans 19,170 19,529 Number of debtors 30,076 30,817 Average loan size Average LTV 51.07% 50.98% Average seasoning (months) Average remaining maturity (years) Average rate 2.00% 1.82% 90+ days arrears (cover pool) 1.65% 1.23% 90+ days arrears (residencial cover pool) 0.87% 0.64% Outstanding covered bonds 500, ,000 Eligible overcolateralization % % Thousands of euros Cut off March

32 Eligible Cover Pool RESIDENTIAL ELIGIBLE POOL COMMERCIAL ELIGIBLE POOL 30/09/ /03/ /09/ /03/2016 Total amount 1,332,489 1,340,310 Total amount 258, ,401 Number of loans 16,313 16,610 Number of loans 2,857 2,919 Number of debtors 27,414 27,838 Number of debtors 2,662 2,979 Average loan size Average loan size Average LTV 53.79% 53.59% Average LTV 37.02% 38.31% Average seasoning (months) Average seasoning (months) Average remaining maturity (years) Average remaining maturity (years) Average rate 1.75% 1.58% Average rate 2.64% 2.49% 90+ days arrears 0.87% 0.64% 90+ days arrears 5.71% 4.11% Thousands of euros Cut off March

33 Outstanding Covered Bonds OUTSTANDING COVERED BONDS ES (Maturity: 01/10/2021) 500,000 COVER POOL AMORTISATION PROFILE 2,000,000 1,800,000 1,600,000 Outstanding covered bonds (500 MM) 1,400,000 1,200,000 1,000, , , , ,000 0 Contractual loans maturity Thousands of euros Cut off March

34 Breakdown by LTV * TOTAL PORTFOLIO ELIGIBLE PORTFOLIO Total Amount (thousands ) : 1,649,145 Total Amount (thousands ) : 1,340,310 Residencial WA LTV : 57.15% Residencial WA LTV : 53.59% 25.00% 22.60% 30.00% 25.99% 20.00% 15.00% 10.00% 5.00% 1.58% 3.58% 5.52% 8.87% 12.70% 16.66% 18.10% 10.39% 25.00% 20.00% 15.00% 10.00% 5.00% 1.33% 3.65% 6.28% 10.47% 15.12% 19.58% 17.59% 0.00% > % TOTAL PORTFOLIO ELIGIBLE PORTFOLIO Total Amount (thousands ) : 363,287 Total Amount (thousands ) : 275,401 Commercial WA LTV : 43.18% Commercial WA LTV : 38.31% 20.00% 15.00% 10.00% 10.68% 12.68% 18.22% 15.88% 14.94% 10.80% 25.00% 20.00% 15.00% 11.20% 15.83% 22.52% 20.24% 18.21% 5.00% 4.78% 5.45% 6.58% 10.00% 5.00% 4.20% 4.46% 3.34% 0.00% >80 * LTV Calculated on a WA basis Cut off March %

35 Breakdown by seasoning (months) * TOTAL PORTFOLIO ELIGIBLE PORTFOLIO Total Amount (thousands ) : 1,649,145 Total Amount (thousands ) : 1,340,310 Residencial WA Seasoning : 71.5 Residencial WA Seasoning : % 23.78% 30.00% 20.00% 25.00% 25.00% 15.00% 20.00% 10.00% 5.00% 10.71% 10.25% 9.19% 8.66% 7.81% 7.09% 5.60% 5.36% 5.13% 6.41% 15.00% 10.00% 5.00% 5.52% 6.20% 4.04% 5.03% 5.59% 6.74% 10.06% 11.54% 9.83% 10.44% 0.00% > % >100 TOTAL PORTFOLIO ELIGIBLE PORTFOLIO Total Amount (thousands ) : 363,287 Total Amount (thousands ) : 275,401 Commercial WA Seasoning : 67.6 Commercial WA Seasoning : % 31.18% 35.00% 32.95% 30.00% 30.00% 25.00% 25.00% 20.00% 20.00% 15.00% 10.00% 12.22% 9.82% 6.93% 5.97% 5.37% 5.61% 4.95% 5.80% 4.27% 7.89% 15.00% 10.00% 10.72% 7.35% 6.81% 5.15% 5.23% 5.25% 5.42% 6.52% 4.78% 9.81% 5.00% 5.00% 0.00% >100 * Seasoning Calculated on a WA basis Cut off March % >100 35

36 Breakdown by maturity (years) * TOTAL PORTFOLIO ELIGIBLE PORTFOLIO Total Amount (thousands ) : 1,649,145 Total Amount (thousands ) : 1,340,310 Residencial WA Maturity : 23.2 Residencial WA Maturity : % 43.42% 50.00% 46.22% 40.00% 40.00% 30.00% 24.53% 23.34% 30.00% 27.58% 20.00% 20.00% 17.98% 10.00% 8.70% 10.00% 8.22% 0.00% % TOTAL PORTFOLIO ELIGIBLE PORTFOLIO Total Amount (thousands ) : 363,287 Total Amount (thousands ) : 275,401 Commercial WA Maturity : 14.2 Commercial WA Maturity : % 37.79% 37.18% 40.00% 36.04% 35.65% 30.00% 30.00% 24.33% 20.00% 20.10% 20.00% 10.00% 4.90% 10.00% 3.99% 0.02% 0.00% >40 * Maturity Calculated on a WA basis Cut off March %

37 Breakdown by current loan balance ( )* TOTAL PORTFOLIO ELIGIBLE PORTFOLIO Total Amount (thousands ) : 1,649,145 Total Amount (thousands ) : 1,340,310 Residencial Average : 82, Residencial Average : 80, > % > % % % % % % % % % % % % % 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% TOTAL PORTFOLIO ELIGIBLE PORTFOLIO Total Amount (thousands ) : 363,286 Total Amount (thousands ) : 275,401 Commercial Average : 99, Commercial Average : 94, > % > % % % % % % % % % % % % % 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% * Current Loan Balance Calculated on a WA basis Cut off March % 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 37

38 Breakdown by features* 2ND HOME; 4.74% RESIDENTIAL 1ST HOME; 95.26% TYPE OF PROPERTY COMMERCIAL INDUSTRIAL LAND; 2.20% RURAL LAND; 2.38% URBAN LAND; 6.12% RURAL PROPERTY; 10.21% HOUSE; 43.95% OTHERS; 5.80% INDUSTRIAL USE; 29.34% HOUSE INDUSTRIAL USE OTHERS RURAL PROPERTY URBAN LAND INDUSTRIAL LAND RURAL LAND 1ST HOME RESIDENTIAL OTHERS; 2.37% FIXED; 0.50% ICO Y CONV; 0.04% 2ND HOME REFERENCE RATE OTHERS; 7.85% COMMERCIAL FIXED; 4.51% ICO Y CONV; 1.52% EURIBOR 1Y; 97.09% EURIBOR 1Y; 86.12% EURIBOR 1Y OTHERS FIXED ICO Y CONV * On total portfolio Cut off March 2016 EURIBOR 1Y OTHERS FIXED ICO Y CONV 38

39 Breakdown by geografical* RESIDENTIAL PORTFOLIO LTV CONCENTRATION LTV COMMERCIAL PORTFOLIO LTV CASTILLA LA MANCHA 58,37% CASTILLA LA MANCHA 43,83% MADRID 55,59% MADRID 41,52% CASTILLA Y LEÓN 52,84% CASTILLA Y LEÓN 48,19% OTHERS 52,49% OTHERS 29,83% RESIDENTIAL CONCENTRATION COMMERCIAL CASTILLA Y LEON 1.42% CASTILLA Y LEON 1.55% OTHERS 2.76% OTHERS 2.63% MADRID 35.08% MADRID 14.82% CASTILLA LA MANCHA 60.74% CASTILLA LA MANCHA 81.01% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% * On total portfolio Cut off March

40 Contacts Headquarters Caja Rural de Castilla La Mancha, S.C.C. C/ Méjico, Toledo Toledo (Spain) Tel: inversores@cajaruralclm.es Ignacio Naranjo CFO Tel: Fax: inaranjo@cajaruralclm.es Julián Sanchez-Mayoral Head of Credit Risk Tel: Fax: jsmayoral@cajaruralclm.es 40

41 Disclaimer All rights reserved for Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito. This document was created by Caja Rural de Castilla La Mancha Sdad. Coop de Crédito exclusively for the Purpose of giving corporate Presentation by Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito. This Presentation may only be shown to business customers and institutional clients. This document may not be changed or shared with third parties without the express consent of Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito. Anyone in possession of this information or document is obliged to learn about the legal regulations governing possession and sharing of such information and comply with those regulations. This Presentation may not be shared with transmitted to any country with laws restricting the sharing or transmisión of such information. Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito is not nor can it be held responsable for the usage, valuations, opinions, expectations or decisions which might be adopted by third parties following the publication of this information. This Presentation is exclusively for general information purposes. It does not represent an offer to conclude an agreement on the provision of investment advisory services or the purchase of Securities. Where this Presentation cites information not originating from Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito or not produced at it s request, such information has been compiled from sources deem trustworthy without beeing verified. For this reason, Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito assumes no guarantee that such information is complete or correct Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito assumes no responsibility or liability watsoever for expenses, losses or damage from or in connection with the use of all or part of the information contained in this Presentation. Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito cautions that this presentation may contain forward looking statements with respect to the business financial condition results of operations, strategy, plans and objectives of the Caja Rural de Castilla La Mancha Sdad. Coop. de Crédito. While these forward looking statements represent our judgement and future expectations concerning the development of our business, a certain number of risks, uncertaintites and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macroeconomic, governmental, political and regulatory trends; (2) movements in local and international Securities Markets, currency exchange rate, and interest rates; (3) competitive pressures; (4) technical developments; (5) changes in the financial position or credit worthiness of our customers, obligors and counterparts. These risk factors could affect our business and financial performance pusblished in our past and future filings and reports, including those with the Spanish Securities and Exchange Commission (Comisión Nacional del Mercado de Valores). 41

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