Piraeus Bank S.A. · ATHEX:TPEIR
Piraeus Bank — FY2010 Earnings Presentation
30 slides from Piraeus Bank's earnings presentation, Mar 24, 2011
Slide 1: FY 2010 Financial Results
FY 2010 Financial Results 24 March 2011
Slide 2: Agenda
A Highlights pages 3 - 5 B FY 2010 Financial Performance pages 7 - 20 C Appendix pages 22 - 30
Slide 3: 2010 Performance Highlights
Highlights 2010 Performance Highlights Net Interest Income y-o-y (€ mn) Net Interest Income q-o-q (€ mn) +9% 1,207 1,105 Net interest income +9% y-o-y, +2% q-o-q +2% 310 Greece +10% y-o-y, international +7% y-o-y +2% 298 +2% 305 293 Net fee income -3% y-o-y, +7% q-o-q Greece -7% y-o-y, internati
Slide 4: Financial review
Financial review Key Financial Drivers in € mn FY ’10 y-o-y Q4 ’10 q-o-q Net Interest Income 1,207 9% 310 2% Net Fee Income 199 -3% 51 7% Net Revenues 1,499 -10% 403 10% Revenues excl. Trading 1,499 1% 373 0% Resilient core pre-provision income, mainly driven by net Operating Cost 884 -1% 248 14% in
Slide 5: Areas of focus
Areas of focus 11.2% 10.5% Capital ratios post rights issue position Piraeus Bank among the best capitalised banks 12% 9.7% 9.1% 7.5% 7.0% in Greece, providing additional buffer in current environment 8% Capital Resilience of regulatory capital over the last 3 years of adverse economic conditions Ca
Slide 6: FY 2010 Financial Performance
A Highlights pages 3 - 5 B FY 2010 Financial Performance pages 7 - 20 C Appendix pages 22 - 30
Slide 7: Net interest income - Greek spreads
Net interest income - Greek spreads Group NII q-o-q (€ mn) - NIM (%) Piraeus Bank Greek Spreads q-o-q (%) 2.67% 2.66% 2.67% 2.67% Loans 4.06% 3.77% 4.00% NIM on avg interest earning assets 3.26% 3.37% 3.50%3.54% 305 310 3.11% 3.20% 293 298 2.69% 2.72% 2.81% Other Loans 382 397 402 0.96% 365 0.78% 0.
Slide 8: Greek spreads
Greek spreads Piraeus Greek Retail Loan Spreads q-o-q (%) Piraeus Bank Greek Deposit Spreads q-o-q (%) 2.41%2.35% 2.52% 9.10% 8.97% 8.51% 8.76% 8.65% 8.78% 1.53% 8.04% 8.10% Sight-Savings 7.74% 6.93%6.99% 6.97% Consumer Loans 0.37% 0.23% 0.12% -0.08% -0.06%-0.08%-0.10% 0.02% 0.02% -0.07% -0.12% -0.3
Slide 9: International operations
International operations International PPI Contribution to Group (%) 2010 Pre Provision Income per Country (%) International PPI / Group (%) €294 mn 17 UK/US PPI (€ mn) 14 Serbia PPI excl.trading (€ mn) 10 Cyprus 270 18 Albania 311 294 Bulgaria 234 220 66 152 66 206 226 170 186 129 56 120 €7.9 bn ne
Slide 10: Greek Government bonds
Greek Government bonds Total Securities Portfolio Breakdown (€ bn) GGB Portfolio Breakdown (€ bn) Long bond position only €10.2 bn €10.4 bn €10.3 bn €9.9 bn 0.5 0.7 0.6 €8.8 bn €8.7 bn €8.4 bn 1.7 €8.6 bn 1.9 2.3 2.1 0.1 0.2 €8.0 bn 0.2 1.7 1.2 1.4 1.2 €6.7 bn 1.1 3.4 2.8 2.7 2.5 2.3 1.0 2.3 2.3 2.3
Slide 11: Capital base & adequacy
Capital base & adequacy Shareholders Funds Evolution (€ mn) Capital Adequacy Data (€ bn) +756 3,525 3,500 3,000 2,863 2,769 Dec.’10 Dec.’10 proforma* -35 -36 -18 -5 2,500 Equity Tier I 2.7 3.5 2,000 Core Tier I ** 2.9 3.6 Tier I 3.2 4.0 1,500 Tier I + Tier II 3.5 4.3 1,000 Risk Weighted Assets 38.1
Slide 12: Operating cost
Operating cost Operating Cost y-o-y (€ mn) Operating Cost q-o-q (€ mn) -1% 893 884 5% 262 272 287 256 248 220 223 218 220 214 217 205 -4% 199 622 192 597 Operating cost down 1% y-o-y, with Greek OPEX down 4% for 2nd consecutive year 2009 2010 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'
Slide 13: Funding: Retail
Funding: Retail Piraeus Funding & Deposit Mix (%) Piraeus Loans / Deposits (%) €52.6 bn Time 4% 1% 71.2% 190% Other unsecured interbank 190% International 170% 33% 156% Secured interbank 150% 142%140% 5% Sight Savings 16.5% 12.3% 130% ECB funding 112% Piraeus Group 111% 108% 107% 110% Greece Domesti
Slide 14: Funding: Wholesale
Funding: Wholesale ECB Funding: Greek Banks - Piraeus (€ bn) Piraeus’ Secured Funding (€ bn) 20 100 ECB Funding Greek Banks 18 90 Piraeus Bank Secured Funding 16 80 14 70 12 60 10 50 8 40 30 6 4 Piraeus €17.2 bn ECB funding 20 10 2 (Dec’10), flat in Q1’11 0 0 Steady progress in eligible non- Dec '07
Slide 15: Loan portfolio
Loan portfolio Piraeus Loan Mix (%) Piraeus Product Mix per Region (%) €39,071 mn €30,602 mn €8,469 mn SMEs 8% Secured Greece Consumer 2% 14% Consumer* 46% 78% 4% 2% 20% 9% Secured Consumer 9% Consumer* 22% 25% Mortgages 18% International Mortgages 24% 22% 51% Large High collateralised loan book 45%
Slide 16: Asset quality
Asset quality NPLs 90d+ Evolution (%) Piraeus Coverage vs. Peer Group* (%) 7.6% Loans in Arrears (%) 6.8% 6.0% 54.4% 5.6% 60% Piraeus 5.1% 48.5% 48.4% 50% Q4 NPLs formation at high level Loans in Arrears (€mn) +330 -41 +323 -34 driven by business NPLs +229 40% 45.6% 45.2% +256 -36 -32 40.9% Peer Gro
Slide 17: NPLs formation & provisions analysis
NPLs formation & provisions analysis NPLs 90d+ formation per region (€ mn) NPLs 90d+ formation per segment (€ mn) 2,960 2,672 2,960 2,383 2,672 +42 +71 -41 2,383 2,187 +108+60 -34 +216 2,187 +115 -41 1,967 1,967 +59 -34 +214 -36 +55 +79 -32 +155 +94 +65 -32 +264 +102+69 +85 +87 -36 +164 +169 Interna
Slide 18: Asset quality: SMEs in Greece
Asset quality: SMEs in Greece Piraeus Business NPLs 90d+ vs. Market (%) Piraeus SMEs Loans & NPLs Granularity (%) Greek Market - Business (BoG) 25% 10% 8.5% Dec.’10 7.6% 20% Piraeus Greek SMEs 8% 7.1% Piraeus’ SMEs portfolio is skewed towards 6.0% medium-sized enterprises with lower risk 15% Sept.’1
Slide 19: Retail credit past due vs. market
19 •• % % 0 5 10 15 20 25 0 5 10 15 20 25 30 35 Mar-08 Mar-08 Apr-08 Apr-08 May-08 May-08 Jun-08 Jun-08 Jul-08 Jul-08 Aug-08 Aug-08 Sep-08 Sep-08 Oct-08 Oct-08 Nov-08 Nov-08 Dec-08 Dec-08 Jan-09 Jan-09 Feb-09 Feb-09 Mar-09 Mar-09 Apr-09 Apr-09 May-09 May-09 Jun-09 Jun-09 Jul-09 Jul-09 Aug-09 the ave
Slide 20: Asset quality: International
Asset quality: International Contribution to NPLs ratio (%) Dec.2009 Sep.2010 Dec.2010 Group Loans (%) Albania 6.5% 7.8% 7.6% 1.2% Bulgaria 3.9% 5.6% 6.4% 4.4% Romania 5.8% 9.0% 10.8% 8.2% Serbia 8.8% 10.3% 11.3% 1.5% Egypt 6.6% 10.3% 12.2% 2.2% Cyprus 4.4% 5.2% 3.9% 1.9% NPLs for international oper
Slide 21: Appendix
A Highlights pages 3 - 5 B FY 2010 Financial Performance pages 7 - 20 C Appendix pages 22 - 30
Slide 22: E-banking / Green banking
E-banking / Green banking E-banking Winbank Active Customers Winbank was launched in 2000 starting with 1,000 users and today has app. 165 th active users 165 th 40 awards in 10-year period New Greek legislation regarding B2B and B2C transactions, along with increasing internet penetration, 138 th w
Slide 23: Macro Outlook for Greece
Macro Outlook for Greece: Challenging at least until Q4’11 GDP carry-over effect (%) 8 6 We see our below-consensus GDP forecast of -3.5% for 2011 as a combination of two 4 factors: 2 a) a negative carry-over effect that will 0 subtract 2.3 pps from GDP and -2 b) negative within year dynamics of -1.
Slide 24: Fiscal Policy: Some progress on flows, renewed attention on stocks
Fiscal Policy: Some progress on flows, renewed attention on stocks Central Government Balance (€ mn) 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 -10.000 -20.000 The first part for the resolution of the crisis called -30.000 -40.000 for dealing with the fiscal flows, i.e. dealing with -50.000
Slide 25: SEE Macro Outlook
SEE Macro Outlook General comments: Bulgaria 50 • Real GDP growth will be positive in 2011 for all countries in SEE and Egypt as higher 25 % YoY % YoY consumption, along with stronger investment, will support domestic demand and real GDP 20 40 • Financing support from international institutions conc
Slide 26: Group B/S & P/L
Group B/S & P/L Group Profit & Loss Group Balance Sheet in € mn 2010 2009 % y-o-y in € mn Dec.’10 Dec.’09 % y-o-y Net interest income 1,206.9 1,104.9 9% Cash & balances with central banks 2,993 2,978 1% Net fees 199.0 206.0 -3% Loans & advances to banks 1,477 992 49% ► commercial banking fees 171.8
Slide 27: Group P/L per region
Group P/L per region 2010 Domestic Operations Performance 2010 International Operations Performance in € mn 2010 2009 % y-o-y in € mn 2010 2009 % y-o-y Net interest income 762.5 691.1 10% Net interest income 444.4 413.8 7% Net fee income 145.6 157.0 -7% Net fee income 53.4 49.0 9% Trading & other in
Slide 28: Group loan and deposit portfolios analysis
Group loan and deposit portfolios analysis in € mn Dec.’10 Sep.’10 Jun.’10 Mar.’10 Dec.’09 % y-o-y % q-o-q Total Gross Loans to Customers 39,071 39,257 39,682 38,834 38,683 1% 0% Loans to Businesses 27,666 27,410 27,916 27,267 27,076 2% 1% SMEs 18,121 17,873 18,501 18,136 18,175 0% 1% Large Corporat
Slide 29: Group presence per country
Group presence per country (31 Dec. 2010 data) in mn € Assets y-o-y Loans y-o-y Deposits y-o-y Branches # Staff # Greece 45,491 7% 30,602 2% 24,359 -6% 360 6,370 Albania 670 6% 469 5% 501 22% 56 487 Bulgaria 2,182 -4% 1,711 -8% 676 3% 101 981 Romania 3,944 -4% 3,198 -6% 1,164 2% 187 1,981 Serbia 751
Slide 30: Communication - Disclaimer - Financial Calendar
Communication - Disclaimer - Financial Calendar Piraeus Group Investor Relations The Piraeus Bank Group Cultural Foundation (PIOP) George Poulopoulos, Chief Financial Officer organises and manages a network of thematic museums, which study, preserve and promote Greece’s heritage George Marinopoulos,