Crediabank S.a. · ATHEX:CREDIA
Crediabank — Attica Bank — Investor Presentation (September 2014)
39 slides from Crediabank's investor presentation, September 2014
Slide 1: Attica Bank Presentation September 2014
Attica Bank Presentation September 2014
Slide 2: Table of Contents
Table of Contents Page Company Snapshot and forthcoming capital increase 3 Company Profile 13 Attica Bank in H1 2014 17 Assets-Loan Portfolio 19 Deposits, Funding 24 Profit & Loss Account 28 Capital 32 Strategic Aspiration 35 Appendix 37 2
Slide 3: Company Snapshot and Forthcoming Capital Increase
Attica Bank Company Snapshot and Forthcoming Capital increase 3
Slide 4: Introduction and transaction background
Introduction Attica Bank Transaction background Attica Bank S.A ("Attica" or the "Bank") is the fifth largest bank in Greece, On 6 March 2014 the Bank of Greece (“BoG“) published the results of its with total assets of €4.0 billion, offering retail and corporate banking latest stress test conducted
Slide 5: Recent macroeconomic and banking sector developments
Recent macroeconomic and banking sector developments Positive GDP evolution in the last quarters Loan quality normalisation for the Greek banking system • After losing its competitiveness during the crisis the Greek economy is • The continued stabilisation of the loan quality of the Greek banks is c
Slide 6: Key highlights
Key highlights A pure play on the Greek banking sector – Highly concentrated banking market in a recovering economy providing structurally 1 strong profitability • Post the recent consolidation wave, Greece is the most concentrated banking market in Europe and the oligopolistic market structure prov
Slide 7: A pure play on the Greek banking sector
A pure play on the Greek banking sector 1 Business description Loans/deposits breakdown Attica Bank focuses on providing credit to small and medium Loans FY 2013 Deposits FY 2013 enterprises and private individuals in Greece. The Bank also offers a wide range of deposit, investment and insurance pro
Slide 8: A pure play on the Greek banking sector
A pure play on the Greek banking sector 1 Niche SME player in Greece with a captive and loyal client base Loans breakdown by segment— segment—H1 2014 • Traditional full service commercial bank with a clear focus on the Attica Sector2 SME segment • Opportunity to leverage on captive construction clie
Slide 9: Restructuring potential offers strong upside opportunities
Restructuring potential offers strong upside opportunities 2 Opex optimisation Opex/branches Opex/branches (€ (€m) Loans and deposits/branches (€ (€m) • In H1 2014, personnel expenses were €22.7 million, down by 15.0% on a YoY basis • Further room to reduce cost base through restructuring − restruct
Slide 10: Clear governance rights & optimum size to unlock the value uplift
Clear governance rights & optimum size to unlock the value uplift 3 Private ownership (%) • Attica Bank is the only bank of meaningful size in Greece that weathered the crisis without any support from HFSF and remained completely private − no Relationship Framework Agreement with HFSF • No integrati
Slide 11: Attractive entry valuation for a co-control opportunity
Attractive entry valuation for a co-control opportunity 4 • Trading at an attractive multiple to its Greek Current trading P/TBV (x) peers with a higher quality tangible book value P/TBV entry multiple 1.14x 1.22x 1.00x 0.78x • Low DTA as a % of tangible book value in recent re-caps • Within DTA, la
Slide 12: Strong funding and historically resilient asset quality
Strong funding and historically resilient asset quality 5 L/D ratio in Greece (H1 2014) (%) Deposit growth y-o-y (%) Eurosystem funding (€ (€bn) bn) Euro funding/ Total assets 2.5 14.0 11.3 14.2 9.9 (gross, %) • Strong funding profile • Less than 100% LDR • Attica has outperformed the market in depo
Slide 13: Company Profile
Attica Bank Company Profile 13
Slide 14: History of the Bank
History of the Bank 1925 ● Year of establishment ● Listed on the Athens Stock Exchange 1964 ● Emporiki Bank acquires 70% of Attica Bank ● Major shareholders: - The Engineers and Public Works Contractors' Pension Fund 1997 (“TSMEDE”) - Loans and Consignments Fund ● Major shareholders: 2002 - TSMEDE -
Slide 15: Profile
Profile Products and services to businesses and private individuals Distribution ● Network - 70 branches, including: 34 in Athens 8 in Thesaloniki Retail Customers Corporate & SMEs 28 in the Rest of Greece - 84 ATMs 22.3% of the loan 76.7 % of the loan book Most in branches book (as at June
Slide 16: The Attica Bank Group of Companies
The Attica Bank Group of Companies 100% 99.99% 55.00% 100% 100% Mutual fund Venture capital fund Specialist investment Insurance brokerage Real estate management management consulting services investment management 16
Slide 17: Attica Bank in H1 2014
Attica Bank in H1 2014 "Aj attica bank ,,
Slide 18: Attica Bank in H1 2014
Attica Bank in H1 2014 amounts in euro millions H1 2014 FY 2013 Change % Profitability • Net interest margin: 2.51% Total Loans before provisions 3,701.8 3,736.9 -0.9% • Net interest income: +243 % y-o-y Stock of Provisions 466.4 436.4 6.9% • General operating expenses: - 9.3% y-o-y • Personnel expe
Slide 19: Assets - Loan Portfolio
Attica Bank in H1 2014 Assets-Loan Portfolio 19
Slide 20: Breakdown of Total Assets
Attica Bank in H1 2014 Breakdown of Total Assets, (as at 30.6.2014: 4,016 € m.) 2.1% Cash, cash balances w ith the central bank, due from other financial 0.8% institutions In H1 2014: 1.3% 5.3% 4.0% 4.8% Securities portfolios •Total assets increased by 1.8% y-o-y. 0.8% 0.5% Loans and advances to cus
Slide 21: Loan Portfolio breakdown
Attica Bank in H1 2014 – Loan Portfolio Breakdown of the loan portfolio by type, (H1 2014: 3,702 € m. ) State Leasing Private 1.0% 7.9% Individuals 22.3% Businesses 68.7% Loans to Private Individuals by type, (H1 2014: 827,3 € m.) Loans to businesses by sector, (H1 2014: 2,838 € m.) Agriculture Othe
Slide 22: Loan Portfolio NPL ratios
Attica Bank in H1 2014 – Loan Portfolio Since 2009 the Greek banking system has been facing increased challenges as a result of worsening macroeconomic conditions. As shown in the diagrams, in the last years NPL ratios for Attica Bank have been below the sector average, as the Bank mainly focuses in
Slide 23: Loan Portfolio NPLs and provisions
Attica Bank in H1 2014 – Loan Portfolio NPLs H1 2013- H1 2014 (euro million) As at 30.06.2014 the NPL ratio of the Bank (loans in arrears - 94.4 € m for more than 90 days) stood at 24.5% (Dec. 2013: 26.6%). + 66.7 € m 1020 1002.9 1000 Accumulated provisions for non-performing loans amounted to 980 4
Slide 24: Deposits, Funding
Attica Bank in H1 2014 Deposits, Funding 24
Slide 25: Deposits, Funding: Group Deposits
Attica Bank in H1 2014 - Deposits, Funding Group Deposits Deposits: y-o-y changes (%) euro million Breakdown Group deposits per type of customer 17.2% 19.1% 16.6% 1.1% 1.0% 0.7% 15.6% 16.3% 19.2% In H1 2014 the deposits balances of the Bank improved at a faster pace when compared to the banking sect
Slide 26: Deposits, Funding: Core and Time Deposits
Attica Bank in H1 2014 - Deposits, Funding Core Deposits, 30.6.2014 741.3 Slight decrease in core deposits in the first half of 2014 720.0 (18 €m.) fully offset by a respective, higher increase in 702.0 time deposits (43 €m.) euro million H1 2013 FY 2013 H1 2014 * Core Deposits: sight and savings ac
Slide 27: Deposits, Liquidity
Attica Bank in H1 2014 – Deposits, Liquidity ECB and ELA funding, % of total assets Sector Attica Bank 31/12/2009 10.10% 9.50% The reliance of Greek banks on borrowing from the 30/6/2010 17.30% 14.50% ECB and the Bank of Greece (ELA) increased 31/12/2010 19.00% 12.60% significantly during 2012, peak
Slide 28: Profit & Loss Account
Attica Bank in H1 2014 Profit & Loss Account 28
Slide 29: Profit & Loss account, Operating Income
Attica Bank in H1 2014 – Profit & Loss account, Operating Income P & L Evolution H1 2014 (euro 000s) 150,000 100,000 34,674 50,000 4,560 0 -50,000 Operating income by source H1 2014 (euro 000s) -30,113 -22,293 -45,745 -100,000 -46,416 837 -68,038 -150,000 -106,909 1,454 6,384 7,837 -153,325 7,294 -2
Slide 30: Interest Income
Attica Bank in H1 2014 - Interest Income Group Net Interest Income H1 2014 (euro 000s) Net Interest Margin (NIM) H1 2014 60,000 50,670 3.0% 50,000 46,297 2.51% 2.5% 40,000 2.0% 30,000 1.16% 1.5% 20,000 14,749 1.0% 0.75% 10,000 0.5% 0 H1 2013 FY 2013 H1 2014 0.0% H1 2013 FY 2013 H1 2014 The Group Net
Slide 31: Operating Expenses
Attica Bank in H1 2014 - Operating Expenses Operating expenses breakdown H1 2014 4.1% 3.4% 4.3% 19.6% 19.8% 23.2% 28.1% 29.3% 31.2% 48.2% 47.5% 41.4% H1 2013 FY 2013 H1 2014 Provisions for credit risks Salaries and personnel expenses Cost / Income Ratio H1 2014 General operating expenses Depreciatio
Slide 32: Capital
Attica Bank in H1 2014 Capital 32
Slide 33: Shareholding and capital structure
Shareholding and capital structure Shareholders Capital Structure 1. Share capital of 413.9 million euros and is ETAA – TSMEDE 50.67% divided into: Other shareholders 49.33% •1.045.794.145 Common Shares, with a nominal value of € 0.30 each, listed on the Athens Stock Exchange. •286,285,714 Preferenc
Slide 34: Capital position
Attica Bank in H1 2014 – Capital position Capital Adequacy ratios – H1 2014 • CET 1: 9.2% • Tier I Capital ratio: 12.1% • Capital Adequacy ratio: 12.6% Risk Weighted Assets H1 2014 Capital H1 2014 3,500 156 208 208 120 3,000 120 117 500 452 450 408 413 406 422 393 2,500 400 372 euro millions 343 eur
Slide 35: Strategic Aspiration
Attica Bank Strategic Aspiration 35
Slide 36: Strategic aspiration
Attica Bank – Strategic aspiration Vision To establish Attica Bank as an autonomous and specialized medium-sized, full-service, commercial bank with a stronger presence in the market Key areas of action Focus and expand further in lending to businesses active in sectors with growth potential (e.g. b
Slide 37: Appendix
Appendix "Aj attica bank ,, ©
Slide 38: Key Financial Ratios
Key Financial Ratios GROUP GROUP GROUP BANK BANK BANK BALANCE SHEET STRUCTURE 30/6/2014 31/12/2013 30/6/2013 30/6/2014 31/12/2013 30/6/2013 Customer Deposits / Loans and Advances to customers (before provisions) 90.15% 88.64% 74.49% 90.55% 89.05% 74.84% Customer Deposits / Total Assets 83.09% 81.70%
Slide 39: Contact Information and disclaimer
By receiving this document, the Recipient accepts and agrees to be bound by the following obligations and limitations: Above material has been prepared with Attica Bank contribution and cooperation by the Bank’s financial advisors, for the exclusive use of the selected parties to whom it is delivere