results presentation 3q 2013

Download Results presentation 3Q 2013

Post on 13-Jul-2015

398 views

Category:

Economy & Finance

3 download

Embed Size (px)

TRANSCRIPT

  • Results Presentation

    3Q 2013

    28 October 2013 1Q

  • 2 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    Legal Disclaimer

    This document was prepared by Bankia, S.A. ("Bankia") and is presented exclusively for informational purposes. It is not a prospectus and does not constitute an offer or recommendation to invest.

    This document does not constitute a commitment to subscribe, or an offer to finance, or an offer to sell, or a solicitation of offers to buy securities of Bankia, all of which are subject to internal approval by Bankia.

    Bankia does not guarantee the accuracy or completeness of the information contained in this document. The information contained herein has been obtained from sources that Bankia considers reliable, but BANKIA does not represent or warrant that the information is complete or accurate, in particular with respect to data provided by third parties. This document may contain abridged or unaudited information and recipients are invited to consult the public documents and information submitted by Bankia to the financial market supervisory authorities. All opinions and estimates are given as of the date stated in the document and so may be subject to change. The value of any investment may fluctuate as a result of changes in the market. The information in this document is not intended to predict future results and no guarantee is given in that respect.

    Distribution of this document in other jurisdictions may be prohibited, and therefore recipients of this document or any persons who may eventually obtain a copy of it are responsible for being aware of and complying with said restrictions. By accepting this document you accept the foregoing restrictions and warnings.

    This document does not reveal all the risks or other material factors relating to investments in the securities/transactions of Bankia. Before entering into any transaction, potential investors must ensure that they fully understand the terms of the securities/transactions and the risks inherent in them. This document is not a prospectus for the securities described in it. Potential investors should only subscribe for securities of Bankia on the basis of the information published in the appropriate Bankia prospectus, not on the basis of the information contained in this document.

  • 3 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    Contents

    1. 3Q 2013 highlights

    2. 3Q 2013 results

    3. Asset quality and risk management

    4. Liquidity and solvency

    5. Conclusions

    Annex: BFA Group data

  • 4 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    3Q 2013 highlights

    High degree of progress in branch closures and workforce adjustment RESTRUCTURING

    PLAN Over 1,900 million in cash generated by sale of non-strategic assets

    Increased productivity in the branch network

    BUSINESS ACTIVITY

    New business model

    Good performance of the business in the restructured network

    2

    1

    Continued growth in net interest income and pre-provision profit

    FINANCIAL

    PERFORMANCE Stabilised cost of risk

    Efficiency ratio improvement

    3

    Significant strengthening of liquidity and solvency

    Net profit in line with estimates

  • 5 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    3Q 2013 highlights

    As of today 29.7% of the branches existing at the end of 2012 have been closed.

    Restructured network at 30 September 2013 accounts for 88% of deposits and 87% of gross income generated in the branch network.

    Workforce has been reduced by 19.6% year to date (4,019 employees)

    BRANCH CLOSURES

    ESTIMATED CLOSURES (PLAN) 1,143

    CLOSURES COMPLETED TO DATE 929

    % OF TARGET 81%

    Restructuring plan 1

    BRANCH NETWORK RESTRUCTURING AND CAPACITY ADJUSTMENT

    Network restructuring to be completed in Q1 2014, ahead of Strategic Plan schedule

  • 6 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    3Q 2013 highlights

    Business activity 2

    PRODUCTIVITY AND EFFICIENCY

    More productive and efficient organisational structure: 81% of the branches remaining after the restructuring are more than 15 years old

    OPERATING EXPENSES/ATAs EFFICIENCY RATIO

    STRICT DEPOSITS BY BRANCH (m)

    Dec 2012

    30.5

    Sep 2013

    40.0

    Dec 2012

    46.6

    Sep 2013

    58.9

    4Q 2012

    0.78%

    3Q 2013

    0.70% - 8 bps

    4Q 2012

    63.3%

    3Q 2013

    54.2% - 9.1%

    pts.

    (1) Cost-to-income ratio excluding trading income and exchange differences

    (1)

    GROSS LENDING BY BRANCH (m)

    31.1% 26.4%

  • 7 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    3Q 2013 highlights

    Business activity 2

    NEW MODELS OF SUPPORT OFFICES FOR THE BRANCH NETWORK

    Segmentation of the network and opening of a new branch model.

    A total of 28 Recovery and Liquidation Centres (CLRs) will be in place in the areas with lower presence (non-natural territories).

    Recovery and Liquidation Centres (CLRs)

    Intense activity in monitoring and recovery of NPLs

    Referral of high-value customers to the appropriate branches

    Settlement activities

    Transactional Centres Oficinas giles

    High frequency transactions

    Sale of basic products (credit cards, term deposits, etc.)

    Extended opening hours

    ALLOWING GREATER BUSINESS FOCUS IN THE BRANCHES

  • 8 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    3Q 2013 highlights

    Financial performance 3

    Profit before tax in the 3Q amount 229 million. Total pro forma accumulated to September 2013: 633 million.

    Net interest income increases for the second consecutive quarter, to 643 million, and at the same time expenses reduce by 5%.

    Results

    Asset quality

    Liquidity and solvency

    Reduction of NPLs for the third consecutive quarter in a cumulative amount of around 800 million in the first nine months of the year.

    Coverage ratios are maintained on loan portfolios at 8.5% of the total portfolio and 62.6% of NPLs.

    Reduction of the commercial gap continues and the LTD ratio improves to 116.7% .

    Bankia again increases its capital ratio, by 74 bp in the quarter, reaching EBA Core Tier I of 11.06% .

  • 9 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    3Q 2013 highlights

    CASH GENERATED FROM COMPLETED SALES OF INVESTEES

    1,133

    Amounts in million

    Financial performance 3

    DIVESTMENT PLAN

    More than 1,900 million of cash generated from sale of investees

    CASH GENERATED FROM SALES OF INVESTEES PENDING APPROVAL

    779 ESTIMATED LIQUIDITY

    To 30 June To 30 Sept

    715

    More than 70 sales and liquidations completed by the end of 3Q 2013

    Others

  • 10 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    Contents

    1. 3Q 2013 highlights

    2. 3Q 2013 results

    3. Asset quality and risk management

    4. Liquidity and solvency

    5. Conclusions

    Annex: BFA Group data

  • 11 of 28 / October 2013

    53

    38

    26

    185

    200

    0

    138

    205

    222

    144

    128

    47

    COLOUR

    SCHEME

    206

    201

    161

    Bankia Pro Forma Income Statement 1Q / 2Q / 3Q 2013 Key figures

    A

    B

    C

    D

    2Q 2013

    The following pro forma income statement excludes the cost of the subordinated loan by BFA to Bankia, in the amount of 89m in 1Q and 53m in 2Q, which was cancelled on 23 May. In 2Q and 3Q 2013, profit from discontinued operations in amounts of 113 mill. and 21 mill., respectively, is included in profit from sale of investees and other profit.

    3Q 2013 results

    Bankia Group data. m

    Net interest income

    Gross Income

    Operating Expenses

    Pre-provision profit

    633

    958

    (488)

    470

    Addition to provisions

    Profit before tax

    (585)

    213

    Profit from sale of investees and other profit

    328 E

    1Q 2013

    601

    957

    (494)

    463

    (272)

    191

    0

    3Q 2013

    643

Recommended

View more >