Attica Bank Q1 2015 FINANCIAL RESULTS Strategy Department 27.5.2015
Table of Contents Page Attica Bank in Q1 2015 3 Assets-Loan Portfolio 5 Deposits, Funding 9 Profit & Loss Account 12 Capital 16 Appendix 20 2
Attica Bank in Q1 2015 3
Attica Bank in Q1 2015 Profitability amounts in euro millions Q1 2015 FY 2014 Change % 1 2 3 4 5 6 1 2 3 4 1 2 3 Pre-Provision profit : 13.3 m, up by 17.7%* on a y-o-y basis Net Operating Income : 30.9 m Net Fee and Commission Income: + 25 % on a y-o-y basis Net Interest Margin: 2.41% Personnel Expenses: - 13.4% on y-o-y basis Total Operating Expenses: - 13.3% on a y-o-y basis (excluding provisions for credit and other risks) Balance Sheet Highlights Loans before provisions almost stable on a y-o-y basis NPE ratio: 48 % Stock of provisions: + 3.5 % on a q-o-q basis Deposit outflows rates below sector average in Q1 2015 Capital Common Equity Tier I ratio (CET 1): 6.1% Tier I Capital Ratio (Tier I): 8.4% Capital Adequacy Ratio: 8.4% Total Loans before provisions 3,744.5 3,739.4 0.1% Stock of Provisions 565.3 546.3 3.5% Deposits 2,966.7 3,254.3-8.8% Assets 3,872.6 3,956.3-2.1% amounts in euro millions Q1 2015 Q1 2014 Change % Total Net Operating Income* 30.9 31.7-2.5% Total Net Fee and Commission Income 9.0 7.2 25.0% Personnel Expenses 10.1 11.7-13.4% General Operating Expenses 6.0 7.4-19.4% Total Operating Expenses (excluding provisions for credit risk) 17.7 20.4-13.3% Pre- Provision profit/(loss) 13.3 21.3-37.8% Pre-Provision profit (loss) excluding extraordinary income of 10 mil. euros in Q1 2014 13.3 11.3 17.7% Provisions for credit risks 19.2 18.5 3.8% Profit / (loss) before taxes -6.0 2.8-18.0% *excluding extraordinary interest income of 10 million euros recorded in Q1 2014. Data on a consolidated basis 4
Attica Bank in Q1 2015 Assets-Loan Portfolio 5
Assets, Deposits Total Assets, Q1 2014 - Q1 2015 (euro million) Loans before provisions, Q1 2014- Q1 2015 (euro million) - 1.7% - 2.1% 0.4% 0.1% 3,725.0 3,739.4 3,744.5 Breakdown of Total Assets, (as at 31.03.2015: 3.87 bn.) 3.7% 1.6% 7.3% 2.7% 2.5% Cash, cash balances with the central bank, due from other financial institutions Securities portfolios Q1 2014 FY 2014 Q1 2015 Due to Customers, Q1 2014- Q1 2015 (euro million) 1.1% -8.8% 3,219.3 3,254.3 2,966.7 Loans and advances to customers (net of provisions) Property, plant and equipment, intagible assets Deffered tax assets Q1 2014 FY 2014 Q1 2015 82.1% Other assets Loans (after provisions) / Due to customers Q1 2014 FY 2014 Q1 2015 101.6% 98.1% 107.2% Data on a consolidated basis 6
Loan Portfolio Breakdown of the loan portfolio by type, Q1 2015 (Loans before provisions: 3.74 bn.) Loans to Private Individuals by type, Q1 2015 (Total : 0.81 bn.) Loans to businesses by sector, Q1 2015 (Total : 2.60 bn.) Data on a consolidated basis 7
Credit Risk Management Indicators Non Performing Exposures NPE Formation (euro million) FY 2014 Q1 2015 Impaired, % 35% 39% Cash Coverage 41% 39% Collateral Coverage 51% 51% Total Coverage 93% 90% NPEs, % 44% 48% Cash Coverage 33% 32% Collateral Coverage 59% 60% Total Coverage 92% 92% In the first quarter of 2015 context-specific developments and elevated uncertainty affected the repayment capacity of borrowers. As a result of the above and in combination with the limited funding options of private individuals and businesses, non performing exposures increased by 139.39 million euros during the last quarter. Data on a consolidated basis 8
Attica Bank in Q1 2015 Deposits, Funding 9
Customer Deposits, Funding Breakdown of due to customers per type, Q1 2015 Breakdown of due to customers per type of customer, Q1 2014 Q1 2015 Other 0.5% Current accounts 15.8% 17.2% 15.3% 12.8% 0.6% 0.7% 1.1% 16.3% 22.8% 28.0% Time Deposits 72.2% Savings accounts 11.6% Cost of Deposits (stock) 01/2015-05/2015 (bps) 65.9% 61.3% 58.1% Q1 2014 FY 2014 Q1 2015 Private individuals Public Sector Other Businesses Time and Core Deposits, Q1 2014 Q1 2015 (euro million) 2,578 2,452 2,141 641 803 826 Q1 2014 FY 2014 Q1 2015 Time Deposits Core Deposits Data on a consolidated basis 10
Liquidity, Deposits EuroSystem Funding Deposits: y-o-y changes (%) The Bank's reliance on the ECB and ELA funding as a percentage of total assets as at 30/04/2015 stood at 18.9%, significantly lower than the sector average. Sector Attica Bank 31/12/2014 14.4% 4.3% 31/1/2015 21.9% 8.2% 28/2/2015 26.3% 10.9% 31/3/2015 27.2% 12.4% 30/4/2015 29.7%* 18.9% * estimate ECB & ELA Funding, % of Total Assets Source: Bank of Greece and Attica Bank The Bank keeps adequate collateral for its Eurosystem operations. Moreover, the Bank has not renewed so far a 285 mil. Bond issued under Law 3723/08 and guaranteed by the Greek State, which expired on 06/02/2015. Source: Bank of Greece and Attica Bank In 2014 the deposits balances of the Bank improved at a faster pace when compared to the banking sector average. Since the end of 2014 deposits balances have deteriorated due to increased uncertainty. During the first quarter of the year, the Bank's deposits decreased slower than the sector average (- 8.8% against a sector average of - 13.6%). Outflows have continued in April 2015. However, deposits balances have stabilized in May. Data on a consolidated basis 11
Attica Bank in Q1 2015 Profit & Loss Account 12
Profit & Loss account, Operating Income P & L Evolution (euro 000s) Operating income by source (euro 000s) OPERATING INCOME Q1 2014 Q1 2015 Net interest income 28,340.98 20,682.45 Net fee and commission income 7,171.50 8,963.33 Gain/ loss from securities 3,906.31 757.65 Other income 2,369.09 507.75 Total 41,787.88 30,911.17 Operating income by segment (euro 000s) The Group had a pre-provision profit of 13.3 million euros in Q1 2015, against a pre-provision profit of 21.3 million euros in Q1 2014. Excluding one-off interest income of 10 million euros recorded in Q1 2014, the pre-provision profit of the Group displays a 17.7% increase y-o-y (11.3 million euros in Q1 2014 against 13.3 million euros in Q1 2015). Data on a consolidated basis 13
Net Interest Income - Net Interest Margin NII * breakdown, (euro 000s) Net Interest Margin (NIM) * The NIM (Net Interest Income / Average Interest - bearing Assets) inreased to 2.41% in Q1 2015 (Q1 2014:2.01%) *excluding extraordinary interest income of 10 million euros in Q1 2014 Data on a consolidated basis 14
Operating Expenses Cost / Income Ratio (excl. provisions) Breakdown of general operating expenses Q1 2014 Q1 2015 Rents 15.6% 21.5% Operating expenses breakdown Advertising and promotion expenses 2.0% 0.8% Telecommunication expenses 7.0% 5.8% Repairs and maintenance 3.8% 4.8% Utility Services 4.7% 5.2% Third party fee and expenses 14.7% 19.3% Legal expenses 6.3% 3.1% Visa expenses 3.4% 2.8% Other 42.5% 36.7% TOTAL 100.0% 100.0% Q1 2014 FY 2014 Q1 2015 Number of Branches 72 70 70 Group Employees 927 899 894 Data on a consolidated basis 15
Attica Bank in Q1 2015 Capital 16
Shareholders and capital structure Shareholders Capital Structure ETAA TSMEDE 50.67% Other shareholders 49.33% ETAA: The pension fund insuring professionals (civil engineers, lawyers, doctors etc.). TSMEDE: Pension fund of the construction sector (engineers and public works contractors) with about 110,000 members and 21,000 pensioners. Part of ETAA since 2008. Free Float: About 20,000 shareholders. No single shareholder holds more than 5% of common shares. 1. Share capital of 413.9 million euros and is divided into: 1,045,794,145 Common Shares, with a nominal value of 0.30 each, listed on the Athens Stock Exchange. 286,285,714 Preference shares, with a nominal value of 0.35 each, issued under the Government Support Scheme in 2009 and held by the Greek State. 2. Contingent convertible bond of current outstanding balance of 95.6 million euros converting into 318.6 million Fourth common level shares of the Bank: In full in 2018 At the option of the bond holders twice a year Compulsorily in the case of a capital contingency event 3. Lower Tier II bond of outstanding balance of 79.3 million euros paid in full in 21-03-2015. 17
Capital position Capital Adequacy Ratios Capital (euro million) Equity Breakdown (euro million) Risk Weighted Assets (euro million) Data on a consolidated basis 18
Share Capital Increase In March 2014, the Bank of Greece published the results of its capital needs assessment of Greek Banks. In order to implement its business plan and satisfy the capital requirements set by the Bank of Greece, Attica Bank has announced a capital increase of 433.4 million euros, through the exercise of pre-emptive rights by existing shareholders. Key terms of the Capital Increase: Reverse split of existing common shares of 16:1. New shares to be issued: 1,111,156,278. New Shares / Existing Shares 17:1. 19
Appendix 20
Group Results by Segment Q1 2014 FY 2014 Q1 2015 Total (euro millions) Retail Business Banking Investment Banking & Treasury Retail Business Banking Investment Banking & Treasury Retail Business Banking Investment Banking & Treasury Q1 2014 Q1 2015 Change % Operating Income 5.7 33.2 2.9 12.3 98.6 10.4 2.7 26.9 1.3 41.8 30.9-26.0% - Net interest income -6.65 33.42 1.57-30.05 116.71 3.17-3.00 24.31-0.63 28.3 20.7-27.0% - Net fee and commission income 1.22 5.72 0.23 2.63 17.82-0.44 0.50 8.64-0.18 7.2 9.0 25.0% - Income from trading & other income 1.33 3.94 1.01 2.10 4.25 5.15 0.18-0.06 1.15 6.3 1.3-79.8% - Adjustment between segments 9.78-9.85 0.07 37.66-40.21 2.56 5.04-5.95 0.91 Income from investments in associates 0.00 0.00-0.09 0.00 0.00 0.37 0.00 0.00 0.00-0.1 0.0 Profit / (loss) before taxes -2.13 3.09 1.86-16.86-79.85 6.72-5.32-1.21 0.57 2.8-6.0 Taxes 2.2 4.7 Profit / (loss) after taxes 0.7-1.3 Provisions for credit risks and securities impairment -3.62-14.88-0.01-8.03-101.97-1.25-4.44-14.56-0.21-18.5-19.2 3.8% Depreciation -0.28-0.97-0.06-1.35-4.85-0.18-0.34-1.22-0.04-1.3-1.6 22.1% Total Assets 795.49 2,795.70 434.50 808.04 2,900.35 247.91 791.63 2,879.60 201.34 4,025.7 3,872.6-3.8% Total Liabilities -2,325.49-1,206.40-79.37-2,161.92-1,360.10-79.26-2,047.24-1,476.12-0.53-3,611.3-3,523.9-2.4% 21
Key financial ratios, Q1 2014 Q1 2015 Group Bank BALANCE SHEET STRUCTURE Q1 2014 FY 2014 Q1 2015 Q1 2014 FY 2014 Q1 2015 Due to Customers / Loans and Advances to customers (before provisions) 86.43% 87.03% 79.23% 86.83% 87.40% 79.63% Due to customers / Total Assets 79.97% 82.26% 76.61% 80.23% 82.48% 76.85% Loans and Advances to customers (after provisions) / Total Assets 81.23% 80.71% 82.10% 81.12% 80.59% 81.93% Total Equity / Total Assets 10.30% 8.97% 9.00% 10.14% 8.82% 8.85% Total Equity / Due to Customers 12.87% 10.91% 11.75% 12.64% 10.70% 11.52% EFFICIENCY Annualized profit before taxes / Average Equity (RoAE) Annualized profit before taxes / Average Total Assets (RoAA) 2.74% -23.54% -6.77% 2.44% -24.15% -6.72% 0.28% -2.25% -0.62% 0.24% -2.27% -0.59% 22
Key financial ratios, Q1 2014 Q1 2015 Group Bank Total operating expenses less provisions / Total Assets Operating expenses less provisions / Total operating income NPL ratio (>90 days in arrears excuding restructurings) Provisions / Loans in arrears > 90 days excluding restructurings Q1 2014 FY 2014 Q1 2015 Q1 2014 FY 2014 Q1 2015 2.02% 2.54% 1.82% 1.94% 2.45% 1.76% 48.74% 82.79% 57.13% 48.25% 82.78% 56.01% 24.63% 27.91% 26.42% 24.63% 27.91% 26.42% 49.18% 52.34% 57.14% 49.18% 52.34% 57.14% CET I 7.11% 6.10% 7.00% 6.00% Tier I Capital Ratio (Tier I) 11.57% 9.24% 8.40% 11.43% 9.11% 8.30% Capital Adequacy Ratio 11.78% 9.70% 8.40% 11.64% 9.60% 8.30% 23
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