Third quarter results 2013 21 October 2013 Koen Beentjes CEO Evert Kooistra CFRO
Agenda I. Update FY13 Q3 II. Financial position III. Outlook 2013 IV. Q&A 2
Part I Update FY13 Q3
Business highlights FY13 Q3 Adjusted EPS FY13 Q3: 10.6 million / 0.15 per share (FY13 Q2: 12.7 million / 0.18 per share) Operating expenses up with 3%: 32.5 million (FY13 Q2: 31.6 million) Number of Retail stock exchange transactions FY13 Q3: 1.9 million (FY13 Q2: 1.8 million) Alex Asset Management total AuM FY13 Q3: > 1.8 billion (FY13 Q2: > 1.5 billion) Successful SNS migration -> as from September, all transactions will be processed via the BPO platform 4
million Highlights FY13 Q3: Retail business unit NL Number of brokerage accounts up with 2,550 to 285,869 (FY13 Q2: 283,319) Number of transactions up to 1.3 million Assets under administration at brokerage accounts 9% to 7.3 billion end FY13 Q3 (FY13 Q2: 6.7 billion) Average price per transaction 11.54 (FY13 Q2: 10.65) -> due to increased average order size & more option contracts per order 288.000 286.000 284.000 282.000 280.000 278.000 276.000 274.000 Number of brokerage accounts 285,869 283,669 283,319 279,189 276,415 1,4 1,3 1,2 1,1 Number of transactions 1.35 1.30 1.16 1.12 1.33 272.000 270.000 1,0 5
Highlights FY13 Q3: Retail business unit Belgium Number of brokerage accounts up with 782 to 55,450 (FY13 Q2: 54,668) Number of transactions 6% to 181,692 (FY13 Q2: 193,628) Assets under administration 7% to 1.6 billion (FY13 Q2: 1.5) Average price per transaction 9.72 (FY13 Q2: 10.22)* * Due to SD Worx impact Number of brokerage accounts Number of transactions 60000 55000 57,063 58,114 59,614 54,668 55,450 240000 225,481 50000 220000 45000 40000 200000 180000 189,486 177,629 193,628 181,692 35000 160000 30000 140000 25000 120000 20000 100000 6
Highlights FY13 Q3: Retail business unit France Number of brokerage accounts 2% to 47,096 (FY13 Q2: 46,307) Number of transactions 7% to 299,261 (FY13 Q2: 279,790) Assets under administration 608 million (FY13 Q2: 543 million) Average price per transaction 5.78 (FY13 Q2: 5.29) Number of brokerage accounts Number of transactions 50000 45000 42,974 44,090 45,434 46,307 47,096 350000 319,226 341,129 40000 35000 300000 287,661 279,790 299,261 30000 250000 25000 20000 200000 7
Highlights FY13 Q3: Retail business unit Italy Number of accounts 13% to 2,211 (FY13 Q2: 1,962) Number of transactions 7% to 44,003 (FY13 Q2: 47,085) Assets under administration 161 million (FY13 Q2: 142 million) Average net fee and com. income per transaction 2.50 (FY13 Q2: 3.89)* * Due to payment of stock exchange and clearing costs 2500 2000 Number of brokerage accounts 2,211 1,962 1,693 50000 45000 40000 Number of transactions 47,085 42,209 44,003 1500 1,253 35000 30000 1000 500 630 25000 20000 15000 10000 6,520 19,230 5000 0 0 8
Highlights FY13 Q3: Retail business unit Segmentation of transaction-related net fee & commission income by country FY13 Q3 Retail total Netherlands Belgium France Italy Net fee and commission income (in 1,000) 18,997 15,392 1,766 1,729 110 Number of transactions 1,859,021 1,334,065 181,692 299,261 44,003 Average net fee and com. income (in ) 10.22 11.54 9.72 5.78 2.50 FY13 Q2 Retail total Netherlands Belgium France Italy Net fee and commission income (in 1,000) 17,507 13,864 1,979 1,481 183 Number of transactions 1,822,458 1,301,955 193,628 279,790 47,085 Average net fee and com. income (in ) 9.61 10.65 10.22 5.29 3.89 9
x million Development Alex Asset Management Total number of accounts end FY13 Q3: 33,353 (FY13 Q2: 30,253) 191 million net inflow in FY13 Q3 (FY13 Q2: 208 million net inflow) 709 million net inflow FY13 YTD Total AuM end FY13 Q3: > 1.8 billion (FY13 Q2: > 1.5 billion) Growth in number of accounts Development AuM 37000 32000 27000 22000 20,756 22,473 26,848 30,253 33,353 2.000 1.800 1.600 1.400 1.200 1.000 800 878 1,013 1,363 1,524 1,826 17000 600 12000 400 200 7000 0 10
Highlights FY13 Q3: Professional Services Number of brokerage accounts: 59,950 (FY13 Q2: 60,289) Number of transactions 15% to 631,851 (FY13 Q2: 551,419) Assets under administration 14.3 billion (FY13 Q2: 13.3 billion) Successful SNS migration 300000 250000 200000 Number of accounts 190,431 189,556 217,760 700000 600000 500000 Number of transactions 356,645 414,386 150000 100000 86,110 87,640 400000 300000 200000 180,760 165,960 275,416 50000 62,296 60,696 61,003 60,289 59,950 100000 187,005 195,938 210,474 194,774 217,465 0 0 Brokerage Beleggersgiro Brokerage Beleggersgiro 11
Part II Financial position
Profit & Loss quarterly comparison in million FY13 Q3 FY13 Q2 FY12 Q3 Net interest income 7.1 6.5 7.8 Net fee & commission income 31.0 28.9 26.5 Other operating income 2.0 2.9 3.0 Results on investments & impairment losses on fin. instr. - - - Total net revenues 40.1 38.3 37.3 Employee expenses (12.6) (12.8) (12.0) Depreciation & amortisation (7.2) (7.2) (8.8) Other operating expenses (12.7) (11.6) (9.0) Total operating expenses (32.5) (31.6) (29.8) Profit (loss) from operations 7.6 6.7 7.5 Other non operating income (1.5) 1.2 (1.1) Tax expense (2.0) (1.7) (2.0) Net profit 4.1 6.2 4.4 Net profit to minority shareholders - - - Net profit to shareholders BinckBank 4.1 6.2 4.4 Adjusted net profit 10.6 12.7 12.1 13
million million Operating expenses Operating expenses in FY13 Q3 up to 32.5 million (FY13 Q2: 31.6 million) Marketing costs for FY13 Q3: 3.4 million (FY13 Q2: 3.9 million) Increased costs: structural higher costs due to the investments in Alex Asset Management & Compliance 40 35 30 25 20 15 10 5 0 Total operating expenses 7.1 8.8 8.8 7.2 7.2 9.0 9.7 14.2 11.6 12.7 12.0 11.9 12.7 12.8 12.6 6,0 5,5 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Marketing expenses 4.1 3.7 3.9 3.5 3.4 Depreciation and amortisation Employee expenses Other operating costs 14
million Financial position BinckBank FY13 Q3 Solid equity position end FY13 Q3 427 million (FY13 Q2: 432 million) Tier I capital 163,2 million (FY13 Q2: 159,4 million) BIS ratio end FY13 Q3 at 31.2% (FY13 Q2: 31.9%) Solvency ratio 20.9% end of FY13 Q3 (FY13 Q2: 22.3%) Capital requirements Solvency ratio 180 166 160 159 159 163 160 140 120 100 80 63 55 51 57 63 60 44 41 41 40 42 40 20 0 Total available capital Required capital pillar I Required capital pillar I + II 26% 24% 22% 20% 18% 16% 14% 12% 24.0% 25.2% 22.3% 20.1% 20.9% Solvency ratio 15
Overview Basel III capital position Category Basel II Q3 2013 Basel III Q3 2013 Difference Total Equity 426,732 426,732 Less: goodwill 152,929-132,390-20,539 Less: other intangible assets 95,131-95,131- - Less: fair value reserve (AfS valuation) 3,475- - 3,475 Less: proposed dividend 7,161-7,161- Core capital 168,036 192,050 24,014 Less: investments in financial subsidiaries 4,790- - 4,790 Common Equity Tier 1 (CET1) 163,246 192,050 28,804 BIS Ratio 31.2% 35.8% 16
Overview Basel III capital position Basel III will come into force as of 1 January 2014 Under Basel III goodwill is deducted net of any deferred tax liabilities, which results in a capital relief of approx. 20 million for BinckBank The fair value reserve is no longer deducted in the calculation of core capital under Basel III. This implies interest rate developments will start to impact capital ratios under Basel III Investment in subsidiaries are no longer deducted but are included in the risk weighted assets subject to a 250% risk weighting 17
Overview investment portfolio Size of investment portfolio end of FY13 Q3: 1.6 billion (FY13 Q2: 1.7 billion) Average duration of the portfolio FY13 Q3: 1.12 (FY13 Q2: 1.10) Yield on investment portfolio end FY13 Q3: 0.86% (FY13 Q2: 0.93%) Allocation funds entrusted per rating Allocation funds entrusted per country AAA 39% AA+ 5% AA 9% AA- 2% A+ 3% A 2% Non rated 4% BBB+ 1% Col. lending 15% Cash 5% Deposits 15% Germany 78% Netherlands 8% Great Britain 2% France 2% Belgium 2% Sweden 2% Canada 1% Switzerland 1% Italy 2% Europe 1% United States 1% 18
Part III Outlook 2013
Development leveraged products Response BinckBank: development own leveraged products A part of the operational processes in cooperation with a partner The project designed to create our own leveraged products is proceeding satisfactorily Launch the first half of 2014 20
Competition New competitor: No banking license Low tariffs Asset lending at the risk of the customer Uncommon order structure (limit hit order) Unstable platform BinckBank: Banking license Transparency High level of customer service Customer education 21
Outlook Our results depend heavily on the activity of our customers in the markets Development of own leveraged products Continued focus on Alex Asset Management 22
Part IV Q&A
Contact details Nelleke Nederlof Manager Investor Relations nnederlof@binck.nl +31 (0)20 522 0372 +31 (0)6 201 98 337 www.binck.com Address Barbara Strozzilaan 310 1083 HN Amsterdam The Netherlands 24
Cautionary Statement regarding Forward-Looking Statements This presentation may contain forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this document that expresses or implies our intentions, beliefs, expectations, forecasts, estimates or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections, as they are currently available to the management of BinckBank N.V. Forward-looking statements therefore speak only as of the date they are made, and we take no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could therefore cause actual future results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, without limitation, the conditions in the financial markets, the reliability of our risk management policies, procedures, systems and methods. The forward-looking statements contained in this announcement are made as of the date hereof, and we assume no obligation to update any of the forward-looking statements contained in this document. 25
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