East West Banking Corp. · PSE:EW
East West Banking — Investor Briefing, 26-28 November 2012
19 slides from East West Banking's conference presentation, Nov 26, 2012
Slide 1: Letter to Philippine Stock Exchange: Investor Briefing
November 26, 2012 THE PHILIPPINE STOCK EXCHANGE, INC. Philippine Stock Exchange Plaza Ayala Triangle, Ayala Avenue Makati City Attention: Ms. Janet A. Encarnacion Head – Disclosure Department Subject: Investor Briefing Dear Ms. Encarnacion: We would like to inform the Exchange that we will be attend
Slide 2: Investor Brief 26-28 November 2012
Investor Brief 26-28 November 2012
Slide 3: Forward-looking statements and figures
Forward-looking statements and figures We caution you that this presentation may contain forward-looking statements and figures about our future financial performance and business. Forward-looking statements and figures in this presentation may include, among others, statements about future financia
Slide 4: Contents
Contents Branch Expansion 2 Deposit and Loan Portfolio Mix 4 Profitability 8 Capital Adequacy 11 FAQs 13 2
Slide 5: Progress of Branch Expansion
Progress of Branch Expansion Branch Expansion… … in the deposit-rich Restricted Areas (RAs) To open circa 100 new # of branches in MM NRA: 26 # of branches in RAs: 115 branches both in 2012 and 2013. Non restricted Quezon city (39) Target At least 350 branches in total by Metro Manila (26) San J
Slide 6: Contents
Contents Branch Expansion 2 Deposit and Loan Portfolio Mix 4 Profitability 8 Capital Adequacy 11 FAQs 13 4
Slide 7: Deposits and Cost of Funds
Deposits and Cost of Funds Deposits and Cost of Funds Deposits Cost of Funds 90.0 3.50% 80.0 3.20% 3.00% 70.0 2.50% 60.0 2.20% 2.10% 2.10% 50.0 2.07% 2.00% 40.0 76.7 1.50% 66.5 69.3 30.0 59.8 1.00% 20.0 39.3 0.50% 10.0 6th in auto loans market share in terms of AR 0.0 0.00% 2008 2009 2010 2011 Sep
Slide 8: Diversified and profitable loan portfolio
Diversified and profitable loan portfolio Loan Portfolio mix Yield by Loan Type 70 Credit Card Auto Mortgage Corporate 63bn 60 30% 27.5% 25.8% 26.2% 26.0% 49bn 50 28 25% 42bn 40 34bn 22 20% 21 3 30 6 14 2 15% 12.5% 12.6% 4 12.2% 11.8% 20 0.4 0.5 11 4 4 8 11.0% 6 6 10% 10.2% 9.4% 10 8.5% 13 15 9 11 8
Slide 9: We have a prudent and disciplined risk management
We have a prudent and disciplined risk management Rising Loans and improving NPLs (%) Adequate NPL provisioning (%) PHPbn Customer Loans NPL Ratio NPL Provisioning Cost of Credit 70.00 7.9% 9.0% 100% 94.5% 7.0% 63.30 90.2% 60.00 6.9% 8.0% 78.1% 6.0% 49.44 7.0% 80% 73.3% 50.00 5.0% 42.00 6.0% 4.5% 60
Slide 10: Contents
Contents Branch Expansion 2 Deposit and Loan Portfolio Mix 4 Profitability x8 Capital Adequacy 11 FAQs 13 8
Slide 11: Profit & Loss Profile
Profit & Loss Profile Net Interest Income Non-Interest Income CAGR 37.7% CAGR 44.5% 6,000 3,500 Industry CAGR 9.1% Industry CAGR 7.7% 4,913 3,000 5,000 4,318 4,317 2,500 1,449 1,363 4,000 3,530 2,000 587 3,000 1,500 662 1,992 1,000 46 2,000 1,627 1,803 1,539 1,368 500 43 1,259 914 1,000 505 0 2007 2
Slide 12: Profitability Ratios
Profitability Ratios Net Interest Margin (%) Cost / Income Ratio (%) EWB Industry EWB Industry 6.9% 7.0% 71% 73% 6.5% 6.6% 65% 64% 62% 61% 63% 63% 64% 5.7% 55% 4.1% 4.1% 4.1% 3.5% 3.4% 2008 2009 2010 2011 3Q2012 2008 2009 2010 2011 3Q2012 ROA (%) ROE (%) EWB Industry EWB Industry 2.3% 2.0% 19.8% 1.9
Slide 13: Contents
Contents Branch Expansion 2 Deposit and Loan Portfolio Mix 4 Profitability x8 Capital Adequacy 11 FAQs 13 11
Slide 14: Capital Adequacy
Capital Adequacy Tier 1 Ratio (%) Capital Adequacy Ratio (%) Tier 1 Capital Adequacy 25.0% 25.0% 20.6% 20.9% 20.5% 20.3% 19.9% 19.3% 20.0% 20.0% 18.3% 18.2% 18.1% 17.8% 17.7% 16.2% 16.1% 15.7% 15.2% 15.4% 15.2% 14.8% 14.3% 13.7% 15.0% 13.6% 15.0% 11.7% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% PTC UBP SECB AB
Slide 15: Contents
Contents Branch Expansion 2 Deposit and Loan Portfolio Mix 4 Profitability x8 Capital Adequacy x11 FAQs 13 13
Slide 16: FAQs during IPO road-show and investor / analyst meetings
FAQs during IPO road-show and investor / analyst meetings Question Response Q Why is EW aggressively expanding its A We took advantage of BSP’s temporary liberalization of branch branch network? licensing in the restricted areas (RAs) in 2011 (phase 1) before full liberalization by 2014. EW will hav
Slide 17: FAQs during IPO road-show and investor / analyst meetings
FAQs during IPO road-show and investor / analyst meetings Question Response Q How are you progressing towards your A Over 50% of the portfolio is still in Consumer. The guidance is for guidance of 40:40:20 in terms of loan our medium to long term target loan portfolio mix. portfolio mix? Q How will
Slide 18: FAQs during IPO road-show and investor / analyst meetings
FAQs during IPO road-show and investor / analyst meetings Question Response Q When do you expect your cost to A Since we are opening another 100 branches in 2013, we expect our income ratio to normalize? cost / income ratio to normalize starting middle of 2014. Q How are you preparing for Basel 3? A
Slide 19: Thank you!
Thank you! > Your dream Our focus <
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