Piraeus Bank S.A. · ATHEX:TPEIR
Piraeus Bank — Non-Deal Roadshow (October 2003)
50 slides from Piraeus Bank's roadshow presentation, October 2003
Slide 1: Piraeus Bank Group Roadshow Presentation
PIRAEUS BANK GROUP Roadshow Presentation P “Athens 2004 Olympics - The Impact Going Forward” October 6-10, 2003
Slide 2: Agenda
Section 1 Executive summary 2 Section Section 22 Greek Greek Economy Economy -- Greek Greek Banking Banking sector sector 99 Section Section 33 Piraeus Piraeus Bank Bank Group’s Group’s strengthening strengthening position position 14 14 Section Section 44 Financial Financial Review Review 31 31 Sec
Slide 3: Executive summary
Executive summary Piraeus Bank Group ¨ Universal Bank with balanced focus on Consumer Lending, SMEs and Corporate Banking / Shipping ¨ Third largest private sector Bank in Greece ¨ Assets of €15.0 bn, loans of €9.7 bn with a market share of 9.5% and 10.1% respectively ¨ Strategic Alliance with ING i
Slide 4: Investment Case
Investment Case ¨ Impressive organic growth in an enlarging market ¨ Strong presence and leading market share in the most lucrative, high margin market segments (I.e. SMEs, individuals) ¨ Further growth will be driven by expansion of the branch network and the strategic alliance with ING in the fiel
Slide 5: Piraeus Bank Group selected market shares
Piraeus Bank Group selected market shares ¨ One of the most dynamic and innovative Financial Groups in Greece Assets 9.5 Loans 10.1 Deposits & Repos 8.6 Consumer Loans 10.9 Consumer Loans (excl.credit cards) 17.7 Mortgage Loans 7.3 Mutual Funds 4.5 Brokerage 6.9 Derivatives 8.0 Leasing (1) 18.1 Clos
Slide 6: Piraeus Bank has a significant free float
Piraeus Bank has a significant free float Free float 80% 75% 70% 75% 65% 50% 45% 25% Alpha National Piraeus Commercial EFG Bank Bank Bank Bank Eurobank- Ergasias Source: MSCI, May 2003 t Piraeus Bank is the 8th largest company in ASE, in terms of free float- adjusted market capitalisation t Piraeus
Slide 7: Piraeus Bank's shareholder structure
Piraeus Bank’s shareholder structure Other ¨ The shareholder base presents great companies ING 8.6% diversity, (129,500 shareholders as 5.0% Treasury of June 2003) consisting of shares 6.8% representatives of the business Individual community, institutional investors, Foreign Investors institutional
Slide 8: Corporate governance
Corporate governance ¨ Audit Committee ¨ Internal Audit Division, that also supervises the subsidiary companies ¨ 11 out of 15 members of the Board of Directors are non executives, 2 of which are independent ¨ Existence of Investor Relations Unit along with a extensive IR section on our website ¨ Pa
Slide 9: Agenda
Section Section 11 Executive Executive summary summary 22 Section 2 Greek Economy - Greek Banking sector 9 Section Section 33 Piraeus Piraeus Bank Bank Group’s Group’s strengthening strengthening position position 14 14 Section Section 44 Financial Financial Review Review 31 31 Section Section 55 St
Slide 10: Greek Economy - Key indicators
Greek Economy - Key indicators ¨ Euro zone member since 1st of January 2001 ¨ Population: 11 million ¨ Sovereign credit rating: A1 (Moody’s), A+ (S&P’s), A (Fitch) ¨ Positive prospects, despite the unfavourable global market environment (Third European Community Support Framework, 2004 Olympic Games
Slide 11: Athens 2004 Olympics - a unique opportunity
Athens 2004 Olympics - a unique opportunity ¨ Athens 2004 Olympics is a unique opportunity for the Greek economy, as Greece will be in the “center of interest” world wide, helping tourism and business transactions. ¨ According to IMF (Economic Outlook - Sept.’03) “The growth in EU should remain some
Slide 12: The Greek Banking sector
The Greek Banking sector … … is expected to profit from the stable euro zone environment % of Greece vs EMU average Greece '02 EMU '02 EMU avg Assets / branch (eur mn) (*) 68.2 103.8 66% Loans / branch (eur mn) (*) 30.9 46.9 66% Deposits / branch (eur mn) (*) 47.4 50.9 93% Total credit / GDP (%) (*)
Slide 13: The Greek Banking market is dominated by a small number of banks
The Greek Banking market… … is dominated by a small number of Banks 30.0 30.0 Top 5 banks constitute about 80%of the Market 25.0 21.0 20.0 18.8 Market share (%) 17.2 15.3 14.9 15.0 12.2 10.6 10.1 10.0 8.6 5.0 3.5 3.0 2.6 2.2 0.0 National Alpha EFG Commercial Piraeus Cyprus General Loans Deposits & R
Slide 14: Agenda
Section Section 11 Executive Executive summary summary 22 Section Section 22 Greek Greek Economy Economy -- Greek Greek Banking Banking sector sector 99 Section 3 Piraeus Bank Group’s strengthening position 14 Section Section 44 Financial Financial Review Review 31 31 Section Section 55 Strategy Str
Slide 15: One of the fastest growing Banking Groups
One of the fastest growing Banking Groups Total Assets (€ bn) Loans Market share (%) 15.0 10.1 10.1 14.8 10.0 15.0 12.3 8.1 7.6 12.0 10.5 6.2 9.0 8.1 5.0 3.9 6.0 3.8 3.0 0.08 0.3 0.0 0.0 1991 1998 1999 2000 2001 2002 June'03 1991 1998 1999 2000 2001 2002 June'03 Branch Network Workforce 4,743 4,803
Slide 16: One of the largest players in specialised market segments
One of the largest players, with strong presence... … in specialised market segments in Greece Loans : 10.1% Leasing : 18.1% 5th place 3rd place Consumer Credit : 10.9% Mortgage Credit : 7.3% 3rd place 5th place Closed-end Funds. : 21.0% Mutual Funds : 4.5% 1st place 6th place Brokerage : 6.9% e-ban
Slide 17: Nation-wide branch network
Nation-wide branch network u 225 branches in 76 cities, well spread around the country u 78 new branches in the last 36 months with substantial business growth potential u 15 - 20 new branches will be created in Athens region in the next 18 months, where there is scope for higher revenues (36% of PB
Slide 18: International presence in 5 countries
International presence in 5 countries u U.S.A. - Marathon Bank u 36 branches v6 branches in New York vTotal Assets € 273 mn u 451 employees vROE (before tax) : 35.5% u U.K. - Piraeus Bank branch v1 branch, based in London vTotal Assets € 650 mn u Romania - Piraeus Bank Romania v6 branches in 5 citie
Slide 19: Strategic Alliance with ING
Strategic Alliance with … the two Groups have a complementary presence in Greece Establishment of two joint ventures :50.1% :49.9% Bancassurance & Asset Employee Benefits Management … combining the promoting power of both networks, 320 branches and 1,500 active insurance agents (together) ¨ All join
Slide 20: Organisational structure
Organisational structure Piraeus Bank Group Companies’ Structure Commercial Investment Asset Non-financial Insurance Banking Banking Management Companies ¨ Piraeus Bank ¨ Sigma Securities ¨ Piraeus Mutual Fund ¨ ING Piraeus Life Technology ¨ ETBAbank ¨ Piraeus Equities ¨ ING Piraeus Mutual Insurance
Slide 21: Branch layout structure
Branch layout structure ¨ Branch restructuring, offering discrete services to enterprises and individuals ¨ Inroduction of a 24 hour servicing zone ¨ Quality Measurement System for the constant monitoring of the customer’s satisfaction. It is applied to the retail customers using independent agencie
Slide 22: Leadership in Consumer Credit
Leadership in Consumer Credit t Loans to individuals represent 28.5% of Mortgage loans 1,500 the loan portfolio t Dynamic expansion in mortgage credit 1,000 (+50.3% y-o-y), increasing the cross-selling (€ mn) 1,446 opportunities 500 962 t High market share in consumer credit (10.9% in June ’03). Exc
Slide 23: Strong and well positioned presence in SMEs
Strong and well positioned presence in SMEs u SMEs represent 34.7% of the loan portfolio Loan Portfolio and their servicing is provided through the branch network, increasing the opportunities for cross selling (loans, deposits, leasing, company cards, winbank) u SMEs have higher interest margins, c
Slide 24: Strong presence in Corporate Banking & Shipping
Strong presence in Corporate Banking & Shipping u Medium - Large Enterprises represent 36.7% of the loan portfolio and their servicing is provided through central operations (Corporate Banking & Loan Portfolio Shipping Divisions) u More than 800 corporate companies managed by Corporate Banking Divis
Slide 25: Powerful customer deposit base
Powerful customer deposit base Customer deposits & repos u 2,050,000 private customer + 14.0% accounts, of which 2,000,000 are 9,000 8,000 savings - sight deposits 7,000 6,000 u 40,000 business customer (€ mn) 8,700 accounts 5,000 7,640 -14.6% 4,000 3,000 u 70,000 standing orders 2,000 1,000 2,330 u
Slide 26: Well-positioned in Investment Banking
Well-positioned in Investment Banking ¨ 14.5% market share in IPOs (hard underwriting) in 1st half 2003 ¨ High market share in IPOs consulting services ¨ SMEs focusing gives room for the sale of investment services ¨ 6.9% in stock brokerage transactions (1st half 2003) ¨ Business development in the
Slide 27: Asset gathering focus
Asset gathering focus ¨ Increased presence in Asset Management & Bancassurance, through the two joint ventures in cooperation with ING ( PIRAEUS life and P PIRAEUSAsset Management) Greece ‘02 EU ‘01 Insurance premium / GDP (%) 2.0 8.0 Funds Under Management/GDP (%) 18 37 Source : Merill Lynch, Swiss
Slide 28: Effective Risk Management System
Effective Risk Management System ¨ Use of Risk-Pro (IRIS) system, covering 95% of Value at Risk in 2002 consolidated assets 4,000 ¨ Application of modern and 3,500 3,000 ‘000. euro 2,500 2,000 1,500 1,000 well-known techniques for 500 0 analysing market risk: Value- 01/01/02 01/02/02 01/03/02 01/04/
Slide 29: Electronic Banking
Electronic Banking … the ¨ has more than 106,000 unique e-banking in Greece customers (internet, mobile, phone) ¨ Among its services are : ® Direct access of portfolio ® Swift payments (in Greece or abroad) ® Money transfer between personal accounts, or to other customers of Piraeus Bank ® Standing
Slide 30: Awards
Awards ¨ “Bank of the Year 2003 in Greece” by The Banker. The international banking magazine highlighted Piraeus Bank's good turn-around in profits, acquisitions and alliances with other banks and technological side of business operations. ¨ Five Divisions of Piraeus Bank and its affiliate Exodus SA
Slide 31: Agenda
Section Section 11 Executive Executive summary summary 22 Section Section 22 Greek Greek Economy Economy -- Greek Greek Banking Banking sector sector 99 Section Section 33 Piraeus Piraeus Bank Bank Group’s Group’s strengthening strengthening position position 14 14 Section 4 Financial Review 31 Sect
Slide 32: Highlights of H1 2003 performance
Highlights of H1 2003 performance ¨Increase in EPS by 13.3% (after tax) ¨Improvement of cost to income ratio to 60.4%, down from 66.5% in H1 2002 ¨Further enhancement of net interest margin (NIM) by 8 basis points to 2.46% (y-o-y) ¨Rise of net commission income by 14.9% (y-o-y) ¨Increase of the loan
Slide 33: PBG's Snapshot P&L
PBG’s Snapshot P&L (€ mn) 30/06/03 30/06/02 2002 2001 2000 Net interest income 182.8 172.8 355.2 273.8 223.5 Fee and commission income 50.5 44.0 88.9 89.1 173.6 Trading profits 33.4 9.8 32.2 109.7 112.8 Other income 20.9 24.7 40.5 17.6 15.9 Total operating income 287.6 251.2 516.8 490.1 525.8 Employ
Slide 34: Improvement of operating profitability
Improvement of operating profitability 100 +13.3% ¨ Improvement of operating 80 profitability, steaming primarily from 85.8 +13.3% reccuring revenue streams 60 75.7 40 46.1 ¨ Improvement of profitability mainly (€ mn) 40.7 20 due to the increase of net revenues by 14.5%, while operating expenses 0 P
Slide 35: PBG's Net Revenues
PBG’s Net Revenues H1 2002 +14.5% H1 2003 € 251.2 mn € 287.6 mn 100 90 80 70 63.6% Interest income 68.8% 60 (%) 50 40 30 17.6% Commission Income 20 17.5% 10 18.9% Other income 13.7% 0 Source: Consolidated financial statements Profitability arising mainly from interest income and commission income 34
Slide 36: Steady Improvement of Net Interest Margin
Steady Improvement of Net Interest Margin 2.5% Enhancement of NIM 2.3% (on avg assets) to 2.46% 2.41% 2.43% 2.38% 2.39% 2.46% in H1‘03 from 2.33% 2.38% in H1‘02 2.0% Q1 H1 9m 12m Q1 H1 2002 2002 2002 2002 2003 2003 35
Slide 37: Enhancing commercial banking commissions
Enhancing commercial banking commissions 14.9% € 44.0 mn € 50.5 mn 100% 80% 64.7% 74.3% Commercial Banking (%) 60% Asset Management Investment Banking 40% 12.5% 9.3% 20% 22.8% 16.4% 0% H1 '02 H1 '03 Net Commission income Commissions are mainly from commercial banking activities 36
Slide 38: Fruitful cost containment policy
Fruitful cost containment policy Total Operating Expenses € 369.2 mn 100 400 90 350 43.7 80 300 70 250 60 (€ mn) (€ mn) 200 50 360.8 90.3 90.2 83.5 90.3 150 325.5 40 76.7 30 100 20 50 10 0 0 2001 2002 Q1 '02 Q2 '02 Avg. per Quarter Q1 '03 Q2 '03 2002 Piraeus Group ETBAbank Group Total operating Tota
Slide 39: Cost containment
Cost containment Staff expenses 90 80 70 0.2% The containement of staff expenses is partially due (€ mn) to implementation of the Voluntary Retirment 60 50 81.3 81.5 40 30 Schemes. 20 10 0 June '02 June '03 General adm inistrative 70 60 expenses The increase in administrative expenses is related to
Slide 40: Improvement of Cost / Income ratio
Improvement of Cost / Income ratio 70.0% Improvement of cost to income 60.0% ratio to 60.4%, decreased from 66.5% 66.5% in H1 2002 50.0% 60.4% with a target < 55% in the next few 40.0% June '02 June '03 years 39
Slide 41: Composition of PBG's Balance Sheet
Composition of PBG’s Balance Sheet Assets Liabilities & Equity June ‘03: € 15.0 bn 100 100 4.6% Cash & Central Bank 2.5% 16.4% Interbank 90 Interbank 90 80 80 70 62.5% 70 Net Loans 60 60 Deposits 71.3% & Repos (%) (%) 50 50 40 40 30 30 19.3% Bonds 20 20 8.3% Equity 10 10 11.1% Other 0 4.1% Other 0 ¨
Slide 42: Financial performance
Financial performance (€ mn) 30/06/03 30/06/02 Dec.’02 Dec.’01 Dec.’00 Total assets 14,993 14,296 14,788 12,259 10,547 Total equity 1 1,242 1,457 1,335 683 902 Customer loans / Total assets (%) 62.5 54.9 59.2 50.9 45.8 Customer loans / Deposits. 87.6 78.8 84.8 64.7 57.9 bonds&repos(%) Accumulated pr
Slide 43: Solid lending and asset quality
Solid lending and asset quality Loans by sector Loans 30.06.03: € 9.7 bn Manufacturing ¨ Strong position in SMEs 13.4% 18.5% Handicraft and consumer loans Trade 0.9% Shipping ¨ Consumer and mortgage 15.1% Construction loans representing 28.5% 13.6% of the loan portfolio State firms 1.6% Other (1) ¨
Slide 44: High asset quality
High asset quality Piraeus Bank Group has : ¨ NPLs ratio 4.0% (June ’03), while net NPLs ratio (after cumulative provisions) is only 0.44% of gross loans ¨ High coverage ratio (89.0% in June ‘03) ¨ Expertise in dealing with “problem” loans. NPLs ratio decreased from 4.6% to 2.0% during the period ‘9
Slide 45: Strong capital base
Strong capital base Piraeus Bank Group June ‘03 Dec. ‘02 Dec. ‘01 Dec. ‘00 Total equity (€ mn) 1,242 1,335 683 902 Total capital ratio (BIS %) 10.9 11.7 8.3 12.0 ¨ Total equity reaches €1,242 mn (June ‘03) and it is only core capital (Tier I), while it constitutes 8.3% of total equity and liabilitie
Slide 46: Agenda
Section Section 11 Executive Executive summary summary 22 Section Section 22 Greek Greek Economy Economy -- Greek Greek Banking Banking sector sector 99 Section Section 33 Piraeus Piraeus Bank Bank Group’s Group’s strengthening strengthening position position 14 14 Section Section 44 Financial Finan
Slide 47: Piraeus Bank's Vision
Piraeus Bank’s Vision To be an “identifiable” Universal Banking Group, playing an important role in South - Eastern Europe, by satisfying its customers’ needs, possessing devoted and competent personnel and offering high Shareholder returns 46
Slide 48: Major goals of the next 5 years
Major goals of the next 5 years... 15% 14.0% 10.1% Market Share 14% in Loans in Greece 10% Market and leading position in the segments of 5% Market Share Share Retail Banking and Leasing 0% June '03 Next 5 years Individu Individu als Corpora Corpora als Balanced focus on Individuals - SMEs te te - C
Slide 49: Major goals of the next 5 years
… Major goals of the next 5 years Achievement of a leading role in 21.0% 20.0% 20% pension/insurance funds mgt, by developing successfully the ING 15% 10.0% strategic alliance 10% C-E 4.5% 5% C-E Achievement of a 10% market share M/F M/F in open-end funds and 20% 0% June '03 Next 5 years in closed-e
Slide 50: Communication
Communication Investor Relations Unit 20, Amalias Ave. & 5, Souri Str. 105 57, Athens Tel. : (0030 ) 210 333 5198 - 210 333 5027 Fax : (0030 ) 210 333 5079 Internet site www.piraeusbank.gr e-mail : [email protected] 49
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