2015 Earnings

Transcription

2015 Earnings

2015 Earnings
March 3, 2016
March 3, 2016 | BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft
Highlights 2015
Delivering strong results … all 2015 goals outperformed
Financial & business highlights
Performance vs. targets
• Net profit of €418m, up 26% vPY … RoE of 16.2%
2015 Targets
• Increasing net interest income and margins …
NII up 7% and NIM up 15bps to 2.06% vPY
Net profit >€400m
Performance
€418m
Return on equity >14%
16.2%
Net cost-out 5-10%2)
10.0%
• Solid risk profile … risk costs down 44% to €46m
Cost-income ratio <50%
46.7%
• Total asset originations of €4.9b … customer loans
up 14% … driven by organic and inorganic growth
NPL ratio <2.5%
• Continued focus on efficiency … cost-income ratio
down 4.9pts to 46.7% vPY
• CET1 ratio of 13.1%1) (post dividend) on a fully
loaded basis … up 100bps vPY
• easybank rated #1 direct bank in Austria …
total accounts up 10% to 556,000 vPY
• BAWAG P.S.K. named “Bank of the Year 2015” in
Austria by The Banker magazine
2.1%
CET1 ratio (FF) ≥12%
13.1%
Total capital ratio (FF) ≥16%
16.0%
Leverage ratio (FF) >6%
Liquidity coverage ratio >100%
6.2%
137%
• Dividend distribution of €325m proposed
FF … Fully fledged
1) Year-end 2015 capital ratios (i.e. CET1 ratio of 13.1% and total capital ratio of 16.0%, both on a fully loaded basis) fully reflect a potential dividend distribution of €325m
2) Based on core operating expenses … €20m provisioned in Q4 ’15 to address further cost-out opportunities
2
Performance scorecard
Strong results across all key indicators
RoE
NIM
Cost-income
2.06%
51.6%
16.2%
14.9%
1.91%
+1.3pts
2014
2015
Leverage (FF)
+0.15pts
2014
46.7%
2015
CET1 (FF)1)
6.2%
5.5%
12.1%
2014
2015
NPL
13.1%
+1.0pt
2.8%
(0.7pts)
2.1%
+0.7pts
2014
(4.9pts)
2015
2014
2015
2014
2015
1) Year-end 2015 capital ratios fully reflect a potential dividend distribution of €325m
3
Business segments
Retail Banking & Small Business
Corporate Lending & Investments
Treasury Services & Markets
€ millions
€ millions
€ millions
Profit before tax
+23%
157
2014
Core rev.
Opex
Risk costs
C/I ratio
Assets
558
(364)
(42)
64.7%
9,579
Profit before tax
+33%
193
143
2015
546
(321)
(34)
58.6%
12,822
2014
V
(2.1%)
(11.8%)
(18.8%)
(6.1pts)
33.9%
• Retail net asset growth of 34% vPY
• Consumer lending originations of €480m …
market share up 120bps to 10.2%
• easybank … balance sheet up 12% to €3.2b
• Finalized acquisition of former Volksbanken
leasing business in October
• Closed acquisition of a high-quality residential
loan portfolio in Western Europe in December
Core rev.
Opex
Risk costs
C/I ratio
Assets
255
(81)
(35)
31.3%
13,885
Profit before tax
(7%)
190
2015
281
(84)
(6)
30.0%
13,188
V
10.2%
3.8%
(81.7%)
(1.3pts)
(5.0%)
• International business originations €3.5b in 2015
• Strong credit profile across international assets
• Focus on stronger Western European countries (i.e.
Germany, UK, France) and the United States
• CEE loan exposure further managed down
• Muted loan demand in Austria … focusing on
risk-adjusted returns and repricing
Core rev.
Opex
Risk costs
C/I ratio
Assets
56
52
2014
2015
53
(22)
0
27.9%
5,755
57
(19)
0
26.9%
4,526
V
8.2%
(12.0%)
–
(1.0pts)
(21.4%)
• Continued focus on high credit quality, shorter
duration and strong liquidity positions
• 98% investment grade portfolio (100%
investment grade issuer ratings)
• No exposure to HETA … no direct exposure to
China, Russia, Hungary or South Eastern Europe
• CLO portfolio entirely sold in Q3 ‘15
4
Financial performance
Strong 2015 results across the Bank
Income statement | € millions
2015
Chg. (%)
Q4 ‘15
Chg. (%)
Net interest income
722.3
7
183.3
0
Net commission income
185.9
(6)
41.1
(6)
Core revenues
908.2
4
224.4
(1)
Other revenues
75.7
51
38.9
–
983.9
6
263.3
22
(459.3)
(4)
(124.9)
(7)
Regulatory charges
(35.2)
43
(17.8)
>100
Risk costs
(45.8)
(44)
(11.2)
(57)
Net profit
417.9
26
98.6
42
Key ratios
2015
Chg. (pts)
Q4 ‘15
Chg. (pts)
Return on equity
16.2%
1.3
14.6%
2.9
Return on tangible equity
16.9%
1.1
15.1%
2.9
Balance sheet | € millions
2015
Chg. (%)
Dec ’15
Chg. (%)
Total assets
35,515
3
35,515
3
Customer loans and receivables
24,713
14
24,713
14
Customer deposits
21,695
3
21,695
3
Own issues
4,505
(26)
4,505
(26)
IFRS equity
2,759
15
2,759
15
16,259
(3)
16,259
(3)
Operating income
Operating expense
Risk-weighted assets
Highlights
• Net profit up 26% vPY … emphasis on
high quality of earnings
• Core revenues up 4% vPY to €908m,
with NII up 7% vPY to €722m
• Total operating expenses down 4%
vPY … continued focus on efficiency
driving operational excellence
• Risk costs down 44% … reflects low-risk
balance sheet and repositioning of
customer business
• Regulatory charges continued to
increase (up 43%) … bank levy, deposit
guarantee scheme, bank resolution fund
• Customer loans increased by €2.9b, or
14% vPY … new originations of €4.5b in
Retail and International Business
• Customer deposits up 3% … LCR at 137%
• Continued favorable trend across key
financial metrics … RoE and RoTE +1pt,
RoRWA +1pt, Cost-income -5pts vPY
5
Core revenues
Core revenue growth driven by customer loans and lower funding costs
Core revenues
€ millions
2.11%
Summary
NII
2.07%
NCI
2.15%
227.0
229.9
235.2
43.9
50.5
51.4
NIM
2.11%
2.14%
218.6
224.4
42.9
41.1
• Total year net interest income (NII) growth 7%
driven by core product growth, pricing initiatives
and lower funding costs
‒ Focus on consumer and international lending while
re-pricing or exiting non-core assets
‒ Reduced funding costs … blended deposit rate
down to 0.32% versus 0.50% year-on-year
‒ Continued focus on balance sheet efficiency
• Total year net commission income (NCI) down 6%
183.1
Q4 '14
179.4
Q1 '15
183.8
Q2 '15
175.7
Q3 '15
183.3
Q4 '15
‒ Impact of NCI mainly driven by sale of captive asset
manager BAWAG P.S.K. INVEST and prior year
1-offs (down €10m vPY)
‒ Strong fund sales of €1.2b (up 4% vPY)
‒ Payments fee income stable despite significant
pricing pressure
6
Operating expenses
Restructuring investments paying off
Operating expenses
€ millions
OPEX
Summary
One-offs
Cost-income ratio
54.2%
45.0%
116.9
46.4%
47.9%
47.4%
124.9
117.6
106.3
110.3
19.5
Q1 '15
Q2 '15
Q3 '15
Q4 '15
2,696
2,619
2,565
2,622
Active FTEs
2,836
• Operating expenses down 4% vPY and core
operating expenses down 10% vPY driven by
sustainable long-term measures … €20m provisioned
in Q4 ’15 for further cost-out opportunities
• Cost-income ratio of 46.7% … down 4.9pts vPY
105.4
Q4 '14
• Significant progress in fixing structural cost
imbalances ... benefits materializing from prior years’
restructuring program
• Continued focus on operating efficiency given
overall market dynamics … low growth, low interest
rates and shifting customer behavior away from
physical to digital networks
• Significant investments made … €35m invested in
2015 … overall investments >€150m in retail franchise
and IT infrastructure in recent years
7
Risk costs
Proactive risk management to maintain conservative risk profile
Risk costs
€ millions
Summary
Risk costs
Risk costs / Loans and receivables
0.40%
25.8
0.18%
11.8
0.20%
0.16%
0.17%
• Risk costs materially down due to de-risking
activities and improved credit quality across core
business segments
• Historic balance sheet clean-up efforts behind us …
no material impairments in 2015
• NPL ratio improved to 2.1% ... coverage ratio
at 59.3%
13.0
9.9
11.2
• Continued focus on proactive risk management
• Proactively reducing CEE loan exposure …
represents less than 0.5% of total assets
Q4 '14
Q1 '15
Q2 '15
Q3 '15
Q4 '15
2.8%
2.3%
2.2%
2.1%
NPL ratio
2.8%
8
Capital
Safe & secure, more capital efficient, lower risk and lower leverage
Capital ratios (FF)
CET1
15.8%
Capital ratios (transitional)
Total capital
+0.2pts
CET1
16.0%
16.1%
B/S Leverage
Total capital
+0.6pts
16.7%
14.4x
12.1%
Dec '14
+1.0pt
13.1%
12.9%
Dec '15
Dec '14
+0.9pts
12.9x
13.8%
Dec '15
(1.5x)
Dec '14
Dec '15
• Bank managed on a fully-loaded basis
… very strong capital base
• SREP requirement 20161) : 8.75% + 0.25%
systemic risk buffer
• Running a low leverage business
model ... 7.8% equity / total assets
• Capital ratios significantly above target
levels and regulatory requirements
• SREP ratio as of 1 Jan 2019 (based on
2016 data): 8.75% + 1.0% = 9.75%
• Year-end 2015 capital ratios fully
reflect a potential dividend distribution
of €325m
• Transitional CET1 ratio 410bps above
SREP requirement as of Dec 2015
• Continued deleveraging of non-core
assets/liabilities coupled with organic
equity accretion
• Regulatory leverage ratio (FF) of 6.2%
1) Based on Promontoria Sacher Holding N.V., the regulated parent company
9
Bank transformation & Outlook
10
Bank transformation … 2012 to 2015
Significantly increased quality of earnings and capital while reducing cost base
and de-risking balance sheet
Key measures
1
Efficiency is key to win
• Reduced total operating expenses by over 30%
• Cost discipline part of Bank’s DNA
2
3
Core revenue growth
• Core revenues up 15% driven by Retail and Int. Business
• NIM expansion through disciplined core product growth
& liability optimization … NIM 2.06% (+61bps vs. 2012)
De-risking balance sheet
• Reduced risk cost ratio from 50bps to 17bps by focusing
on core businesses in developed markets (2/3 Austria
and 1/3 Western Europe and United States)
• Proactively exited non-core assets … proprietary trading,
legacy structured credit book, CEE exposure and lowyielding assets
4
Rebuilding capital base
• Redeemed all non-sustainable transitional capital
instruments (€1.5b since 2012)
• Maintaining a conservative RWA density at 45-50%
• CET1 ratio more than doubled since 2012
1) 2012 figure is a proxy for fully loaded as CRR rules were not in place at year-end 2012
2) Year-end 2015 capital ratios fully reflect a potential dividend distribution of €325m
Key financial metrics
€ billions
Customer loans
55%
21%
Total
assets
Securities
41.3
13%
17%
24%
Non-earnings assets
70%
35.5
2012
2015
Chg.
Profit before tax
€107m
€448m
>100%
Net profit
€107m
€418m
>100%
RoE
6.5%
16.2%
9.7pts
RoTE
7.3%
16.9%
9.6pts
Net interest margin
1.45%
2.06%
0.61pts
Risk cost ratio
0.50%
0.17%
(0.33pts)
70%
47%
(23pts)
6.1%1)
13.1%2)
7.0pts
Leverage ratio (FF)
<3%
6.2%2)
>3.2pts
B/S leverage ratio
22x
13x
(9x)
RoE @ 12% CET1
4.1%
18.0%
13.9pts
RoTE @ 12% CET1
5.8%
18.8%
13.0pts
Cost-income ratio
CET1 ratio (FF)
11
Strategic initiatives driving continued
profitable growth
Strategic topics
A
Digital
transformation
B
Potential
acquisitions
C
Fintech
investments
D
Our approach
• Transform internal culture, continuing to drive simplification and efficiency
• Implement big data and predictive analysis to improve customer experience
• Accelerate reconfiguration of branch network to reflect changing customer behavior
• Pursue unique opportunities in distressed market environment
• BAWAG P.S.K. will play an active and constructive role in banking consolidation
• Capitalize on strong performance to increase customer base and take market share
• Invest up to €100m in partnerships, acquisitions and collaborations
• Focus on early stage financial technology companies
• Become dynamic digital leader in the European market embracing new technologies
• Build out asset origination capabilities both in consumer loans and consumer auto leasing
easybank growth
• Leverage existing digital platform to drive cross-border retail expansion into Western markets
• Intensify existing and enter into new strategic partnerships to drive customer acquisition
12
2016 Targets
2015 Targets
Net profit >€400m
Performance
€418m
Return on equity >14%
16.2%
Cost-income ratio <50%
46.7%
NPL ratio <2.5%
2.1%
CET1 ratio (FF) ≥12%
13.1%
Total capital ratio (FF) ≥16%
16.0%
Leverage ratio (FF) >6%
Liquidity coverage ratio >100%
6.2%
137%
2016 Targets
Net profit
>€450m
Return on equity
>14%
Return on tangible equity
>15%
Cost-income ratio
<45%
CET1 ratio (FF)
>12%
Leverage ratio (FF)
>5%
Outperformed all 2015 targets … expecting to continue successful path going forward
13
IMPORTANT DISCLAIMER: This presentation is prepared solely for the purpose of providing general information about BAWAG P.S.K. Bank für Arbeit und Wirtschaft
und Österreichische Postsparkasse Aktiengesellschaft, Georg-Coch-Platz 2, 1018 Wien (“BAWAG P.S.K.“). The information does not constitute investment or other
advice or any solicitation to participate in investment business. This presentation does not constitute an offer or recommendation to purchase any securities or other
investments or financial products. In respect of any information provided past performances do not permit reliable conclusion to be drawn as to the future
performances. BAWAG P.S.K. does not make any representation, express or implied, as to the accuracy, reliability or completeness of the information contained in this
presentation. BAWAG P.S.K. disclaims all warranties, both express and implied, with regard to the information contained in this presentation. Actual results may vary
from forecasts and variations may be materially positive or negative. In no event shall BAWAG P.S.K. be liable for any loss, damages, costs or other expenses of any
kind (including, but not limited to, direct, indirect, consequential or special loss or loss of profit) arising out of or in connection with any use of, or any action taken in
reliance on, any information contained in this presentation. BAWAG P.S.K. assumes no obligation for updating the provided information in this presentation. The
content in this presentation are not to be relied upon as a substitute for professional advice. This presentation shall not be forwarded to any third party.
14
Annex – Definitions
B/S leverage
Return on equity (RoE)
Common Equity Tier 1 capital (CET1)
Return on risk-weighted assets (RoRWA)
Common Equity Tier 1 ratio
Return on tangible equity (RoTE)
Net profit / average IFRS tangible equity
Total assets / IFRS equity
Based on IFRS CRR regulatory figures (BAWAG P.S.K. Group) excluding
any transitional capital (fully loaded)
Common Equity Tier 1 capital (CET1) / risk-weighted assets
Cost-income ratio (C/I ratio)
Operating expenses (OPEX) / operating income
IFRS equity
Net profit / average IFRS equity
Net profit / average risk-weighted assets
Risk costs / loans and receivables
Provisions and loan-loss provisions, impairment losses and
operational risk (total risk costs) / average loans and receivables
(including provisions)
Equity attributable to the owners of the parent; excluding participation
capital and minorities
Risk-weighted assets (RWA)
Net interest margin (NIM)
RWA density
Net interest income (NII) / average total assets
RWA / total assets
NPL ratio
Total capital
Non-performing loans (NPLs) / loans and receivables (incl. provisions);
loans are not included in NPLs if no economic loss is expected1)
Based on IFRS CRR regulatory figures (BAWAG P.S.K. Group) excluding
any transitional capital (fully loaded)
Regulatory leverage ratio
Total capital ratio
Common Equity Tier 1 capital (CET1) / total exposure (calculation
according to CRR, based on Promontoria Sacher Holding N.V. Group)
Based on IFRS CRR regulatory figures (BAWAG P.S.K. Group, fully loaded)
Total capital / risk-weighted assets
1) For prior reporting dates please refer to the definitions in the respective annual and quarterly reports
15

2015 Earnings

Transcription

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