Charter Court Financial Services Group plc
Charter Court Financial Services — FY2017 Earnings Presentation
21 slides from Charter Court Financial Services's earnings presentation, Mar 20, 2018
Slide 1: Charter Court Financial Services Group PLC Full Year 2017 Results
Charter Court Financial Services Group PLC Full Year 2017 Results 20 March 2018
Slide 2: Performance Highlights – FY 2017
Performance Highlights – FY 2017 2,497 2,737 46% Underlying 31% Gross Originations Cost : Income (£m) Ratio1,2 (%) 2016 2017 2016 2017 Gross Customer 5,385 Cost of Risk3 (%) Loans (£m) 3,823 0.01 % (0.00)% 2016 2017 2016 2017 117 3.19% Net Interest Underlying Profit 50 3.08% Margin4 (%) before Tax1
Slide 3: Delivering on Our IPO Promises
Delivering on Our IPO Promises IPO Target / Objective What we delivered in FY17 Net Loan Growth › Targeting growth of at least 20% in the medium term 41% Cost Income Ratio › Targeting a Cost Income Ratio percentage in the low 30s in the short to medium term 31% CET1 Ratio › Maintain a minimum fu
Slide 4: Financial Performance
Financial Performance Sebastien Maloney Chief Financial Officer 4
Slide 5: Adding to Our Track Record of Financial Delivery
Adding to Our Track Record of Financial Delivery Strong Loan Growth Improving Efficiency Gross Loans to Customers 731 1,609 2,497 2,737 180 170 5,6751 5,385 5,000 120 93 £m 3,823 4,000 59 £m 3,000 60 53 1,952 19 2,000 43 863 30 1,000 0 0 2014 2015 2016 2017 2014 2015 2016 2017 Buy-to-let Residential
Slide 6: Summary Financials
Summary Financials Income Statement 2017 vs. 2016 Change Y/e 31-Dec (£m) 2016 2017 £m % Commentary Interest income 1 144 211 67 47% 1› Strong growth in interest income driven by robust loan book growth Interest expense 2 (57) (67) (10) 18% Net interest income 87 144 57 66% 2› Blended cost of funds f
Slide 7: Summary Financials
Summary Financials Balance Sheet 2017 vs. 2016 Change Commentary Y/e 31-Dec (£m) 2016 2017 £m % 1› Continued strong growth in loan book Net customer loans 1 3,808 5,364 1,556 41% 1 ‒ Year on year net loan growth of 41% Liquid assets 2 269 1,045 776 288% Other assets 80 15 (65) (81)% ‒ Originations w
Slide 8: Segmental Results - BTL
Segmental Results - BTL Originations Gross BTL Loan Book Evolution 2017 Originations £m £m 3,541 2891 1,453 1,592 3,252 £2,737m 801 2,176 855 BTL 58% 2015 2016 2017 2015 2016 2017 Average Average Loan 4.5% 4.2% 4.0% LTV: Size: 72.8% £191k Book Yield2 Cost of Risk2 Segmental Contribution Dec-17 Loan
Slide 9: Segmental Results – Specialist Residential
Segmental Results – Specialist Residential Originations Gross Residential Loan Book Evolution 2017 Originations £m £m Residential 28% 771 1,745 £2,737m 663 1,293 489 828 2015 2016 2017 2015 2016 2017 5.1% 5.0% 4.8% Average Average Loan LTV: Size: 71.2% £154k Book Yield1 Cost of Risk1 Segmental Contr
Slide 10: Segmental Results – Bridging Loans
Segmental Results – Bridging Loans Originations Gross Bridging Loan Book Evolution 2017 Originations £m £m Bridging Loans 12% 314 £2,737m 219 287 206 262 189 2015 2016 2017 2015 2016 2017 9.8% 9.3% 8.8% Average Average Loan LTV: Size: Book Yield1 51.7% £184k Cost of Risk1 Segmental Contribution Dec-
Slide 11: Segmental Results – Second Charge
Segmental Results – Second Charge 2017 Originations Originations Gross Second Charge Loan Book Evolution £m £m Second Charge 2% £2,737m 95 149 169 57 60 80 2015 2016 2017 2015 2016 2017 Average Average Loan 6.2% 5.6% 5.1% LTV: Size: 65.0% £59k Book Yield1 Cost of Risk1 Segmental Contribution Dec-17
Slide 12: Diversified Funding Structure
Diversified Funding Structure Well Positioned for an Environment Post FLS and TFS Ability to dynamically adjust funding mix to optimise funding costs Not overly reliant on a particular funding channel Funding Source 2015 2016 2017 › Direct-to-consumer, digital retail savings bank Retail4 launched in
Slide 13: CCFS’ Securitisation Program continues to optimise cost of funding
CCFS’ Securitisation Program continues to optimise cost of funding – taking tactical advantage of market conditions Securitisation Overview Structured sales › Programmatic issuer of high quality RMBS utilizing specialist knowledge of pricing › CCFS periodically engages in structured sales of assets
Slide 14: IFRS 9 Impacts
IFRS 9 Impacts Provision Movements – IAS 39 vs. IFRS 9 (£’000) Commentary +£733k › IFRS 9 measurement and calculation capabilities implemented during the course of 2017 vs £112m PBT for FY 2017 = 0.7% PBT impact › IFRS 9 is a probability weighted provision based on the outputs of four 1,720 macroeco
Slide 15: Capital and Liquidity
Capital and Liquidity Robust Capital and Liquidity Positions Capital Position Key Liquidity Measures (Dec-17) › CET 1 ratio of 15.6% as at 31 December 2017, comfortably above our £423m £848m 200% minimum target LCR Requirement HQLA LCR › RWAs calculated using standardised risk weightings £910m › Wel
Slide 16: We Remain Confident on the Targets We Set at IPO
We Remain Confident on the Targets We Set at IPO Target / Objective Net Loan Growth › Targeting growth of at least 20% in the medium term Cost Income Ratio › Targeting a Cost Income Ratio percentage in the low 30s in the short to medium term CET1 Ratio › Maintain a minimum fully loaded CET1 capital
Slide 17: Corporate Review
Corporate Review Ian Lonergan Chief Executive Officer 17
Slide 18: Corporate Review & Summary
Corporate Review & Summary Development of Corporate Structure Core Franchise Continues to Deliver Best mortgage lender across multiple Award winning digital asset classes savings platform IPO delivered to plan Recruitment of new Chairman and Senior Independent Director Governance structure rev
Slide 19: Well Positioned Origination Franchise
Well Positioned Origination Franchise 1 Buy-to-let 2 Specialist Residential Precise Originations (£m) Precise Originations (£m) 4,000 200 25,000 100 Originations (£m) Originations (£m) 20,000 80 3,000 150 15,000 60 2,000 100 10,000 40 1,000 50 5,000 20 0 0 0 0 Jul-17 Jan-17 Jun-17 Aug-17 Sep-17 Nov-
Slide 20: CCFS - a Leading Specialist Mortgage Lender
CCFS - a Leading Specialist Mortgage Lender Our Key Strengths… … And Our Priorities and Opportunities for 2018 Leveraging Deep Credit Know-how and Proprietary Data Analytics… 1. 1 Brokers’ first choice for specialist mortgages …Participating in Attractive Secured Lending Markets… 2. 2 Differentiated
Slide 21: 2m, Charter Court
2m, Charter Court nom Financial Services
Charter Court Financial Services Group — FY2017 Earnings Presentation on 6ix