Crédito Agrícola Group Meet your partner in Portugal Brief Presentation 1
Index 1 2 3 4 5 6 History and Ownership Structure Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 2
Crédito Agrícola Group has a remarkable century-old history in Portugal... Over 100 years of history generating value for members, customers, local communities and employees 1896: The first agricultural co-operative credit law is created to serve farmers seeking funds. 1911: Crédito Agrícola was formally created in Portugal, under a cooperative structure. Its model, notwithstanding adaptations from time to time, is still current. 1929: For political reasons, control over agricultural loans and other specialized credit was transferred to a Stateowned Financial Institution. 1976: Following the revolution in 1974, all private financial institutions were nationalized, except for Crédito Agrícola and non- Portuguese financial institutions. 1978: The National Federation of Agricultural Co- Operative Credit Institutions (FENACAM) was created to support and represent the interests of its members, both national and internationally. 1982: Crédito Agrícola reaches autonomy from the State-owned Bank and the network s dispersion reaches its peak with 223 local banks. 1984: Caixa Central is founded to become the financial head of the Group. 1991: Caixa Central was empowered with the mission of supervision, guidance and financial representation of SICAM (comprising the local banks and Caixa Central itself). 1992: Beginning of international business activity. ( ) - 1994: Caixa Central broadens its scope of activities (universal bank) and invests in other businesses (beyond retail banking) to provide a global financial service. 2011: Crédito Agrícola celebrates its 100 th birthday. 2013/2015: Crédito Agricola begins a reorganization process as part of a corporate strategy to reinforce the Group s business and positioning in Portugal and abroad. 3
Crédito Agrícola Group s Corporate Mission, Core Values and Development Strategy Corporate Mission Development Strategy To be the driver for the sustainable development of local communities, through long-term relationships with customers based on proximity and which contribute to fulfil their financial and protection needs and expectations ( one stop shopping ). To satisfy customers financial and protection needs, as well as to fulfil their financial aspirations To promote the local communities development To be recognized as a role model in the financial industry among members, customers, regulatory bodies, partners, employees and the other stakeholders. Soundness Proximity Core Values Co-operative values Trust Simplicity To leverage sustainable investment projects To improve relationship with customers through lean processes that support an excellent service To focus on targeting business opportunities that are expected to return on-going profitability and enhance the cooperative values 4
Crédito Agrícola Group has a comprehensive geographical coverage to fulfil its corporate mission Crédito Agrícola Group s Current Network Footprint The Crédito Agrícola Group covers most of continental Portugal and the Azores Islands Crédito Agrícola Group s presence is visible in 278 out of 308 municipalities in Portugal (90%) through a network 675 branches. Crédito Agrícola covers 633 out of the 3,092 parishes in Portugal (20%) and: In 369, Crédito Agrícola has the only existing branch. In 616, the only connection to the banking system is provided by a Crédito Agrícola s ATM. These branches are complemented by an extensive ATM network (1.497 machines). 5
The Group has accelerated the process of mergers to reach the optimal scale to act in each local market Local Banks: Number and Dimension (2003-2015) Average number of locations per Local Bank 12 2003 Net assets per Local Bank (EUR Million) 2004 67 72 2006 2005 82 92 2007 103 2008 117 2009 128 2015 154 9 6 125 120 115 110 105 100 95 90 85 80 Number of Local Banks Some Local Banks have decided to merge in order to reach the optimal dimension, not only in terms of organizational structures (e.g. commercial, risk, operational support), but also in terms of capital structure to finance corporate projects on a regional scale. 3 6
Crédito Agrícola Group currently comprises 82 Local Banks, Caixa Central, Specialized Companies and Fenacam (1/2) The Crédito Agrícola Group Shareholding Structure Agricultural Local Banks * Head of the Group (Central Mutual Agricultural Credit Bank) ** ** ** - SICAM (perimeter) is represented by Caixa Central, upon which powers were conferred in the areas of oversight, intervention and guidance of banks. (*) A FENACAM detém (*) 98,80% FENACAM do seu owns próprio 98,8% capital. of its own shares. (**) Consolidação 7 por método de equivalência patrimonial. (**) Consolidation by the equity method.
Crédito Agrícola Group currently comprises 82 Local Banks, Caixa Central, Specialized Companies and Fenacam (2/2) The Crédito Agrícola Group Shareholding Structure Local Banks Assets Management Head of the Group Software & IT/Comms. 82 Local Banks ( CCAM ) represent the core of Crédito Agrícola Group, with: > 400.000 Members > 1.400.000 Customers SICAM Sistema Integrado do Crédito Agrícola Mútuo ( SICAM ), develops the Bancassurance activities and sells other financial products and services. Insurances (life&non-life) Non-life and Life Insurance companies use the Group s retail network to distribute their offer which is widely recognized in the market. Fund and Assets & Liabilities Management. Private Equity Private equity company that manages risk capital funds invested in industries such as agriculture and forestry. National Federation FENACAM Federação Nacional das Caixas de Crédito Agrícola Mútuo, was the first structure with national coverage aiming to preserve the Local Banks (CCAM) interests and to represent them in Portugal and internationally. Caixa Central - Caixa Central de Crédito Agrícola Mútuo, CRL, is a cooperative bank with responsibility regarding Group s coordination and joint banking strategy development, institutional representation (includ. domestic clearing and capital markets), supervision and guidance (as empowered by the National Central Bank), Group s treasury and liquidity management, shared services provision and retail bank for Lisbon and Oporto markets. Responsibility for providing software development services and IS/IT and communications equipment purchasing services provision (shared services). 8
1 2 3 4 5 6 History and Ownership Structure Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 9
Crédito Agrícola is one of the leading Portuguese financial groups, with net assets over EUR 15 Billion (In EUR Million; "." means thousands; as of 31 st Dec) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Resources from customers (on & off balance ) 7.479 7.897 8.480 9.282 9.832 10.406 11.048 10.927 10.944 11.413 11.763 12.513 13.184 of which Deposits 7.194 7.582 8.128 8.637 9.122 9.528 9.965 9.939 9.821 10.113 10.123 10.537 10.910 of which Funds and Capitalization Insurance (a) 285 315 352 645 710 878 1.083 988 1.123 1.300 1.640 1.976 2.274 Loans to Customers (gross) 6.690 6.942 7.290 6.901 7.389 8.300 8.781 8.534 8.507 8.301 8.136 8.099 8.373 Loans to Customers (net) 6.010 6.191 6.413 6.620 7.109 7.926 8.366 8.041 7.914 7.660 7.472 7.261 7.555 Total Net Assets 8.290 8.693 9.370 10.601 11.180 12.122 12.948 14.224 14.241 15.113 14.621 15.051 14.936 Net Equity 566 652 721 765 887 987 1.075 1.122 1.047 1.100 1.141 1.211 1.205 Common equity tier 1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13,1% 13,1% Core Tier 1 Capital Ratio (Basel II) (b) 9,1% 10,4% 10,5% 11,6% 11,6% 12,2% 12,1% 12,7% 12,5% 11,6% 11,9% n.a. n.a. Solvency Ratio (Basel II) (b) 11,3% 12,9% 14,0% 14,4% 14,4% 13,3% 12,7% 13,4% 12,7% 10,9% 10,8% 13,1% 13,5% Net Loans to Deposits Ratio 83,5% 81,7% 78,9% 76,6% 77,9% 83,2% 84,0% 80,9% 80,6% 75,7% 73,8% 68,9% 69,2% Financial Margin 305 315 311 375 405 425 341 335 381 367 307 307 310 Commissions (net) 54 56 57 85 76 81 82 93 97 102 101 101 98 Insurance Technical Margin n.a. n.a. n.a. 142 114 14 9 5 10-4 -9-21 20 Gross Income (Operating Profit) 381 396 394 581 611 537 457 478 505 493 486 577 515 Net Profit 85 90 78 89 120 121 52 36 55 45-3 27 54 Efficiency Ratio (%) 55,6% 53,5% 57,8% 45,5% 46,4% 56,8% 68,8% 68,3% 65,4% 67,0% 68,2% 57,5% 63,8% Return on Equity (%) 15,0% 13,8% 10,8% 11,6% 13,5% 12,2% 4,9% 3,2% 5,3% 4,1% -0,3% 2,2% 4,5% Return on Net Assets (%) 1,0% 1,0% 0,8% 0,8% 1,1% 1,0% 0,4% 0,2% 0,4% 0,3% 0,0% 0,2% 0,4% Local Banks (#) 120 118 111 105 100 92 88 85 84 84 83 82 82 Branches (#) 598 616 628 632 647 670 680 689 686 686 683 683 675 Staff (#) 4114 4204 4326 4392 4365 4335 4296 4212 4158 4121 (a) Includes mathematical provisions and financial liabilities under insurance contracts, within SICAM perimeter, considered for accounting purposes. (b) Note that ratios were calculated according to the applicable accounting principles (PCSB for 2002 to 2006; NCA for 2007; NIC and Basel II from 2008 onwards). 10
On December 2015, Crédito Agrícola s market share accounts for 6,5% of deposits and for 4,2% of granted loans Geographic Market Share - Deposits Crédito Agrícola s Market Shares Geographic Market Share Granted loans CA 25% 15% CA < 25% 10% CA < 15% 5% CA < 10% CA < 5% CA 25% 15% CA < 25% 10% CA < 15% 5% CA < 10% CA < 5% Global market share: 6,5 % Global market share: 4,2% Açores Açores Source: Portuguese Central Bank (Banco de Portugal); December 2015 11
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In 2015, Crédito Agrícola had the lowest cost to income ratio and liquidity ratio and had the 4 th highest CET1 ratio Benchmark among the 7 major Financial Groups in Portugal 2015 Common Equity Tier 1 (BIS III) - phase in Cost-to-Income Ratio 15,7% 13,6% 13,3% 13,1% 11,1% 10,8% 8,8% Minimum: 8,5% 45,1% 77,6% 41,5% 58,5% 53,1% 66,6% 78,9% Average: 60,2% A B C D E F A B C D E F Loans to Deposits Ratio (%) Return on Equity (%) 105% 113% 101% 69% 85% 90% 113% Indicative Liquidity Ratio Cap: 120% 11,0% 5,3% 4,5% 10,4% -2,8% -1,8% -16,5% A B C D E F A B C D E F Sources: Banks results by December 2015. The bank A does not include the acquisition concluded in December 20 th 2015. 13
Crédito Agrícola has an extensive network of branches and, in 2015, ranked in 3 rd Retail Banks in Portugal (# branches) Bank Dec.2014 Dec.2015 Change 594 575-19 1 Σ 752 204 177-27 2 720 695-25 683 675-8 4 695 671-24 5 631 596-35 6 546 495-51 7 436 421-15 Total 4.509 4.305-204 14 In 2015, the 7 major banks in Portugal closed 204 branches and some of them plan to close some more branches in result of acquisition and/or optimization processes. Sources: Press releases. The bank A includes the acquisition concluded in December 20 th 2015.
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As a universal bank, Crédito Agrícola offers a wide range of financial products and services to individuals and corporations Savings and Checking Accounts Corporate accounts ( or foreign currency) Direct debits Standing orders Payment management Loans / Credit (Individuals and Corporate) Mortgage loans Consumption credit Cash advances / Overdrafts Credit for investment Commercial paper issuing Current-account credit facility NON-EXHAUSTIVE Deposits Cash deposits Fixed- and variable-rate Savings Structured deposits Leasing & Invoicing discounting Vehicle leasing Equipment leasing Real Estate leasing Invoice discounting Asset Management Structured products Securities investment Funds Real Estate investment Funds Integrated asset management Investment Accounts Custodian operations and Market orders Structured products Mutual investment funds Portfolio management International Business Trade finance Correspondent banking International payments Emigrant remittances Tax-efficient investments Management & Financial Advisory Business & corporate strategy Mergers & acquisitions Corporate finance Organization & governance Internationalization Electronic Payments Systems Support Service for Payments and Receipts Debit & credit cards Corporate credit cards Co-branded and private labels POS & ATM Transfers Payments of wages and suppliers Salary management Direct debit systems Life & Non-life Insurances Specialized Financial Services Life and Health insurance Retirement / education insurance and savings & pension funds Property and casualty insurance Professional and personal responsibility Cash management Money and capital markets Financial instruments Foreign exchange Securities brokerage and custody Commodities risk management Venture Capital & Vehicles (mandates) Operational management: Mandates: - FCR Central FRIE - FCR Agrocapital 1 Co-management: - FEII Floresta Atlântica Other financial instruments 16
Crédito Agrícola is the financial partner for a wide range of industries Manufacturing Agro-Industrial Healthcare and Social Services Business Services Automotive Power & Utilities Entertainment, Media and Technologies Pharmaceuticals Public Sector Our industry expertise allows us to support Companies and Projects in a wide range of industries. Forest, paper & packaging Retail & Consumer Transport & Logistics 17
Beyond its 675 branches, the Crédito Agrícola Group offers state-of-the-art electronic interfaces in the digital world 675 Branches > 1,400 ATM & B24 www.creditoagricola.pt CA Online CA Imóveis CA Mobile Banking & Apps Call Center 808 20 60 60 18
The Crédito Agrícola Group is enhancing its international presence through investment and commercial agreements CA geographical footprint (2015) Europe Germany Belgium France Luxembourg Portugal Switzerland Spain Africa Cape Verde Cape Verde Azores Madeira Portugal France Spain Belgium Luxembourg Germany Switzerland Legenda: Domestic network Offices (ER/EI) Agents IFI/SFE Partnerships w/ banks 19
Crédito Agrícola Group s communication strategy is focused on transparency and simplicity to customers and members See here the new film.» 20
1 2 3 4 5 6 History and Ownership Structure Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 21
Recognition of Crédito Agrícola Group s excellence by the banking and insurance industries In 2015, Crédito Agrícola ranked 557th in the global ranking of banks. Portuguese Industry Awards for Crédito Agrícola Group Awarded by EXAME (Portuguese economic magazine): Most profitable bank in its segment Crédito Agrícola ranked 3th in terms of soundness in Portugal (2015) in Exame 2012 Best major life insurance company in Exame 2012, 2006 Category: Banks customer service Best non-life insurance company in its segment in Exame 2015, 2013, 2010, 2009, 2008 22
O Crédito Agrícola, natural partner for the development of local communities In over 100 years of activity, Crédito Agrícola has contributed to economically, socially and culturally develop the regions where Local Banks are integrated (co-operative principles and values being na intrinsic feature). 23
1 2 3 4 5 6 History and Ownership Structure Key Financials Competitive Landscape Value Proposition Industry Awards Main Contacts 24
Contacts: Caixa Central Caixa Central de Crédito Agrícola Mútuo Rua Castilho, 233/233A, 1099-004 Lisbon, Portugal www.creditoagricola.pt International Business Compliance Financial Tel: (+351) 21 380 55 62 Fax: (+351) 21 112 92 69 Tel: (+351) 21 380 56 33 Fax: (+351) 21 380 56 32 Tel: (+351) 21 380 55 35 Fax: (+351) 21 387 45 86 Mr. João Barata Lima Department Head Mrs. Helena Aparício Department Head & Compliance Officer Mr. Manuel Moreira Lima Department Head jblima@creditoagricola.pt haparicio@creditoagricola.pt mlima@creditoagricola.pt Mr. Duarte Vidal Correspondent Banking & Trade Finance dvidal@creditoagricola.pt 25
Crédito Agrícola Group Your banking choice in Portugal Thank You! 26