Presentation of Komercijalna Banka AD Skopje as at December 31, 2014

Transcription

1 Presentation of Komercijalna Banka AD Skopje as at December 31, 2014

2 Contents Komercijalna Banka Overview 3 The Republic of Macedonia 10 The Macedonian Banking Sector 12 Komercijalna Banka Financial Overview 20 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 1,512.1 m) and deposits from customers (EUR 1,282.7 m) and in terms of net loans to customers (EUR m) as of December 31, Customer Base Leading corporate customer base (41,342 customers*) Second largest retail customer base (890,440 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 98.52% private ownership (44.9% foreign, as at December 2014) and about 1.48% held by the Public sector Diversified ownership structure with one single shareholder owning 10% (East Capital Explorer Investments AB, Stockholm, Sweden) EBRD active shareholder with Board representation (more than 5% participation) 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 - over 70% of the current network newly opened or refurbished in the past six years 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) 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 December, Coverage of all major cities and economically significant regions - 58 city branches (40 in Skopje and 18 regional) - 11 regional branches Largest ATM network in the country installed ATMs as at December 2014 (151 as at Dec 2013) Fast expanding merchant network Over 7,400 POS terminals installed as at December 2014 (>6,700 as at Dec 2013) State-of-the-art IT infrastructure Fully integrated Real time Branch Network 7

8 Overview (V):...and an enviable market position Market share as at December 31, 2014 Total assets 23.2% Capital and reserves 21.8% Total deposits from non-financial sector 27.3% Total net-loans to non-financial sector 21.4% Total number of cards issued 15.8% Total number of merchants in the country acquiring bank cards issued by KB 41.2% Total number of POS and ATM acquiring cards 22.2% Total value of realized domestic payment operations 20.0% Total number of accounts opened to legal entities 21.0% Total trading realized at the MSE 58.6% Total number of transactions realized at the MSE 14.7% 8

9 Overview (VI):...Banking awards Banking Awards - Bank of the Year for 2001, 2002, 2004, 2005, 2010, 2011 and 2012 The most transparent company for 2008, 2009 & 2010 Plaque for achieving first place in turnover and number of transactions carried out in The Best Bank for 2002, 2003 & The Best Bank by Assets Strength for 2005, 2006 & The Best Bank by Capital Strength for The Best Bank by Gross Profit for 2005 & The Best Bank by ROE for Participant in the best financial deal STP Excellence Award for 2007,2009,2010 and 2011 Euro STP Excellence Award for Super brand in Macedonia for The Best Bank in Macedonia for 2004, 2005, 2006, 2007, , 2010, 2011,2012 & 2013 and Best foreign exchange Bank 2013 and Best Developing Trade Financier for 2003, 2004, Most active issuing bank In RM in 2009 and award most active participant in the program of EBRD TFP (Trade Facilitation Program) for 2013 nine years in a row Non government organization Transparency zero corruption - National prize for the social responsibility practice of companies in RM for & Prize for best corporate governance Red Cross of the Republic of Macedonia - Gold Supporter Award 2012 price for Corporate Social Responsibility Integrated Approach for 2009, 2010 and 2011 Web site of the year for 2014 under sponsorship by the Ministry of Information Technology 9

10 The Republic of Macedonia

11 The Republic of Macedonia - Macroeconomic Environment: Key economic indicators (1) Population (000's) 2,048 2,053 2,057 / / / / GDP per capita (in EUR) 3,283 3,269 3,434 3,645 / / / The Fitch agency affirmed Macedonia s foreign currency rating at BB+ in September 2014, Real GDP growth (%) (2) 3.8 (2) Central Government Budget surplus/deficit (% of GDP) (1) Source: Ministry of Finance, State Statistical office, NBRM Inflation (CPI%) av Current Account Bal.(EUR'm) Gross External Debt (EUR'm) ,304 3,780 4,106 4,847 5,172 5,220 5,954.4 FX Reserves (EUR'm) 1,495 1,598 1,714 2,069 2,193 1,993 2,437 Foreign direct invest.(eur'm) Unemployment Rate (%) MKD/EUR year end In November 2014 the Credit Rating Agency Standard & Poor s has confirmed the long-term credit rating of Macedonia in domestic and foreign currency to BB- and confirmed the short-term rating B, with stable perspectives. (2) Previous data 11

12 The Macedonian Banking Sector

13 Macedonian Banking Sector (I): The structure and the characteristics as at Structure 15 active banks (4 large, 8 medium and 3 small) 4 saving houses Characteristics High concentration with four 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 Increased total assets Growth in loans and deposits Increased banking capital Constant increase in profitability and efficiency 13

14 Macedonian Banking Sector (II)...assets... Total assets (EUR'm) 6,600 6,400 6,200 6,000 5,800 5,600 5,400 5,200 6,511 6,008 5, Total assets 14

15 Macedonian Banking Sector (III)...and placements to non-financial entities... Placements to non-financial entities (net) (EUR'm) 4,000 3,500 3,000 2,500 2,000 1,500 1, ,613 3,104 3, Placements to non-financial entities (net) 15

16 Macedonian Banking Sector (IV)...and deposits from non-financial entities... 4,800 4,600 Deposits from non-financial entities (EUR'm) 4,668 4,400 4,200 4,000 3,800 3,990 4,216 3, Deposits from non-financial entities 16

17 Macedonian Banking Sector (V)...and capital & reserves Capital & reserves (EUR'm) Capital & reserves 17

18 Macedonian Banking Sector (VI)...and financial results influenced by the crisis Net profit (EUR'm) Net profit 18

19 Macedonian Banking Sector (VII)...and volatile profitability Profitability indicators (EUR'm and %) % 8.5% % % 5.7% % 5.5% 4.5% % % 0.6% 0.8% 2.5% 1.5% 0.5% % NII ROAA ROAE 19

20 Komercijalna Banka Financial Overview

21 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 1,512.1 million, o the amount of total capital and reserves is EUR million, o the amount of consolidated net profit is EUR 4.4 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 21

22 Financial Performance (II): Highlights Key Performance Indicators Key Performance Indicators Net Interest margin 3.5% 3.3% 3.5% Net Interest margin 5.3% 3.8% 3.9% 4.1% 3.5% Net fees and Commission / Income Net fees and Commission / Income Cost/Income Cost / Income NPLs / Total Loans NPLs / Total Exposure 20.0% 44.3% 13.1% 23.0% 54.5% 9.1% 21.5% 24.8% 45.4% 56.6% 17.5% 6.9 % 24.5% 45.8% 5.2% 22.7% 20.3% 44.2% 45.8% 53.0% 19.2% 5.4% 6.2% NPL Coverage 79.2% 72.6% 72.6% % % 83.9% 79.0% 89.9% Net Loans / Deposits (Customers) Net Loans to customers / Deposits 42.4% 47.4 % 54.3% 76.6% 78.1% from customers ROE (1) 66.9% 8.9% 63.0% 16.6 % 19.2% 60.4% 22.0% 15.5% ROE 5.86% 1.0% 0.9% 1.7 % 1.9% 2.8% 2.5% ROA 0.68 % 14.8% % % (2) 10.5% 9.9% 0.3% 1.8% 10.6% Capital adequacy 13.2% 14.1% 13.5% 22

23 Financial Performance (III): Financial indicators Financial indicators Earnings per share (EPS) Book value (BV) Market price per share (1) Dividend Yield 8.33% 5.59% 0.00% 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 23

24 Financial Performance (IV):Income statement (IFRS) in million EUR * 2014* Index 13/12 Index 14/13 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 24

25 Financial Performance (V): Balance sheet (IFRS) in million EUR Index Index Assets * 2014* 13/12 14/13 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 25

26 Financial Performance (VI): Total Assets Total assets (1) (in million EUR) 1,600 1,346 1,400 1,200 1, ,412 8% 13% 36% 34% 55% 52% 1% 1% 1,512 10% 30% 51% 9% Placements to banks Loans to customers Cash and equivalents Other assets (1) Total balance sheet assets (based on net loans after provisions) 26

27 Financial Performance (VII): Gross Loans to Customers Total Loans - Corporate vs Retail (EUR'm) % % % 84% 82% 81% Corporate loans Retail loans 27

28 Financial Performance (VIII): Liabilities Total Liabilities (EUR'm) 1,190 1, % 5% 95% 95% 1, % 96% Total deposits Borrowed funds & other liabilities * Total deposits include deposits from banks which represent less than 2% within total liabilities 28

29 Financial Performance (IX): Deposits Customer Breakdown Deposits by customer category (EUR'm) 1, , % % 76% 76% 1, % 75% Retail deposits Corporate deposits *Corporate deposits include deposits from banks which represent 1.5% within total deposits 29

30 Financial Performance (X):Shareholders Equity and Capital Adequacy Shareholders Equity and Capital Adequacy (EUR'm) % 3% 1% 14.10% 13.21% 62% 67% 66% 32% 32% 31% 13.49% 16.00% 15.00% 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% Share capital incl.share premium Reserves Retained earnings Capital adequacy 8.00% 30

31 Financial Performance (XI): Income Breakdown 73.1 Income (EUR'm) Total income Net interest income Fee and commission income Other income 31

32 Financial Performance (XII): Expenses Breakdown 32.5 Operating expenses (EUR'm) % 16% 17% 18% 8% 9% 14% 15% 40% 42% % 16% 10% 13% 40% Wages, salaries and other employees' costs Materials and services Depreciation and amortization Insurance Other expenses 32

33 Financial Performance (XIII): Efficiency Total income and efficiency (million EUR and %) 45.4% % 44.3% % 45.4% 45.2% 45.0% 44.8% 44.6% 44.4% 44.2% 44.0% 43.8% 43.6% Total income Cost/Income 33

34 Financial Performance (XIV): Non-Performing Loans 1, Total loans (1) vs Non-Performing Loans (EUR'm) % 13.1% 89.8% 9.6% % 78.8% 7% 83.8% 79.2% 8% 89.8% 8.1% % 10.7% 87.3% 9.6% 79.0% % Total loans NPL NPL provisions % NPLs/Total loans % NPL provisions/npls (1) Gross corporate and retail loans excluding bank placements 34

35 Financial Performance (XV): Credit portfolio quality Credit Risk Categories (%) 11.9% 15.2% 17.4% 4.7% 8.6% 7.8% 10.2% 6.4% 3.9% 73.2% 69.8% 70.9% A B C D&E 35

36 Important Notice Thank you! 36