Apresentação dos Resultados Click to edit Master title style CGD A Financial Reference in Portugal A Trade Route Connecting Four Continents Investor Presentation September 2014 (1 st half 2014 unaudited accounts) Investor Relations Office Av. Joao XXI, 63 1000-300 LISBOA PORTUGAL Ph.: (+351) 217 953 000 Email: investor.relations@cgd.pt Site: http://www.cgd.pt
Our Principles LONG TERM COMMITMENT TO THE ECONOMY AND PORTUGUESE SOCIETY BUSINESS FULLY ORIENTED TO CUSTOMER SUPPORT THE CORPORATE SECTOR, NAMELY THE BEST SME PROMOTION OF HUMAN TALENT AND TEAMWORK HIGHEST ETHICAL STANDARDS INNOVATION SOCIAL RESPONSIBILITY AND GLOBAL SUSTAINABILITY 2 June 2014
Agenda Highlights CGD Group Overview Funding and Liquidity Solvency Asset Quality Business Performance Summary Conclusions Appendix 1: Economic Update Appendix 2: CGD Ratings and Consolidated Main Financial Indicators Appendix 3 - Mortgage Covered Bonds Appendix 4 - Sustainability 3 June 2014
A Financial Reference in Portugal A Trade Route Connecting Four Continents • Restructuring Plan for 2013 – 2015 on track. • Focus on banking activity. Strategic Guidelines • Restructuring of the corporate and governance model. • Transformation of the bank to adjust to a renewed economic paradigm. • Strong franchise as a universal bank and a dominant financial group in Portugal. • Extensive network of Banks, branches and representative offices with different Market Leadership organizational structures, stakes and business models, connecting mature and and Global Reach fast growing markets. • Increasing emphasis on corporate business and international activity. Performance • Focus on operational rationalisation and efficiency. • #1 market share in deposits with loyal and growing customer base. • Sound liquidity profile: customer deposits contribute with 60% of total funding. Funding and • Continuous reduction of ECB funding. • Successful return to the international capital markets. Liquidity • Wide and granular distribution in funding instruments and maturity smoothing. 4 June 2014
A Financial Reference in Portugal A Trade Route Connecting Four Continents • Healthy capital base comfortably above both national and European regulatory requirements. Solvency • Capital ratios above Basel III requirements. • Diversified portfolio with no major exposures to a specific segment or sector. • Rigorous and prudent risk management and provisioning. Asset • Strengthening of credit control, monitoring and recovery policies. Quality • New risk committee at non-executive board level. • CGD is the Most Valuable Banking Brand - distinction of the Brand Finance. • CGD continues to further a structured, comprehensive sustainability programme, recognised by domestic and international entities which monitor Sustainability and audit its performance. • In 2013 CGD subscribed to the 10 Global Compact principles, universally accepted in the human rights, labour practice, environmental protection and anti-corruption areas. 5 June 2014
Agenda Highlights CGD Group Overview Funding and Liquidity Solvency Asset Quality Business Performance Summary Conclusions Appendix 1: Economic Update Appendix 2: CGD Ratings and Consolidated Main Financial Indicators Appendix 3 - Mortgage Covered Bonds Appendix 4 - Sustainability 6 June 2014
CGD Group Overview Group Overview Loans and Advances to Customers • Market Share – Portugal (Jun 2014) Established in 1876 and fully owned by the Portuguese State; % 26.5% • 21.6% Strong franchise as a universal Bank and a 18.3% dominant financial group in Portugal; • Leading position in the retail market with 4 million customers in Portugal and assets in excess of 100 B € ; Corporate Individual Total Credit (Mortgage) • Total network of 1,232 branches connecting Deposits from Customers developed countries with the fast growing economies around the world, from which: Market Share – Portugal (Jun 2014) % 803 in Portugal and; 429 branches abroad; 32.2% 27.6% • Largest international platform among Portuguese banks: 23 countries/4 continents; 11.2% • CGD Banking Brands with the Best Reputation - Reputation Institute. Corporate Individual Total Deposits 7 June 2014
CGD Group Overview Global Reach Iberia (Portugal and Spain) Macao / South China Africa Brazil (Angola, Mozambique and South Africa) Extensive network of Banks, branches and representative offices with different organizational structures, stakes and business models, connecting mature and fast growing markets. 8 June 2014
CGD Group Overview Vying for High Growth Markets 1.5% 6.8% EURO AREA 7.5% GDP Growth DEVELOPING ASIA Mozambique 7.7% 7.4% China 5.4% Angola 5.2% 3.5% Cape Verde 3.4% South Africa 2.8% SUB-SAHARAN AFRICA Brazil 2.6% LATIN AMERICA France 1.7% AND THE CARIBBEAN Spain 0.4% Source: IMF Statistics - April 2014 % Annual average of GDP projected growth rate spanning the period from 2011 to 2019: 9 June 2014
CGD Group Overview Diversifying Resource Taking International Activity Contribution % % Credit Geographic Distribution Deposits Geographic Distribution Other Spain 10% 18% Asia Spain PALOP* 32% 33% 16% Jun 14 Jun 14 France 17% Asia 14% Other PALOP* France 9% 24% 27% (*) Portuguese Language Speaking African Countries (*) Portuguese Language Speaking African Countries Março 2013 In terms of credit, Spain and France were the main contributors. International operations contributed significantly to resource taking, with special reference to the operations in Asia, Africa and Spain together with France. 10 June 2014
Agenda Highlights CGD Group Overview Funding and Liquidity Solvency Asset Quality Business Performance Summary Conclusions Appendix 1: Economic Update Appendix 2: CGD Ratings and Consolidated Main Financial Indicators Appendix 3 - Mortgage Covered Bonds Appendix 4 - Sustainability 11 June 2014
Funding and Liquidity Deposits as the Major Funding Contributor Funding Structure % Institutional Customer (Bonds + CP) + Deposits and CoCos other 8% Resources 61% Off-balance Jun 2014 Sheet 23% Central Banks + CI resources 7% Robust funding structure reflecting a dominant retail contribution (deposits and other retail instruments), due to a large and stable customer base: • 3/4 of deposits hail from households; • 2/3 of deposits are term and savings deposits. 12 June 2014
Funding and Liquidity Strong Deposits Base Deposits Evolution Overall Deposits Evolution B € 67.6 66.7 66.7 60.2 64.0 International 13.3 14.6 13.9 11.6 9.9 Domestic market 53.4 52.4 53.0 52.8 50.3 2010 2011 2012 2013 Jun-14 Source: BoP Monetary and Financial Statistics There is a stabilization of the deposit base, particularly at the household level, in line with the banking system. 13 June 2014
Funding and Liquidity Loans-to-Deposits Ratio Loans-to Deposits Ratio % Loans-to-Deposits Ratio Evolution The Loans-to-Deposits Ratio, measured by net 136.0% 122.2% credit to customer 112.0% 103.6% deposits, at 101.1%, is 101.1% lower than the maximum indicative ratio of 120% set for Portuguese banks by 2014 stemming from the Economic and Financial Assistance Programme. 2010 2011 2012 2013 Jun-14 Deleveraging process and low economic activity contributed to the ratio decrease since 2010. 14 June 2014
Funding and Liquidity Ample Collateral Pool Available ECB Funds used by CGD Group and Available Collateral Pool M € 10.106 5.444 10.701 5.773 8.702 Available 1.920 Used 8.497 7.332 1.090 1.270 Used-LTRO 7.981 6.495 5.245 4.995 1.090 2.955 1.995 2010 2011 2012 2013 Mar-14 Aug-14 Continuous reduction of ECB funding and ample available collateral pool, consisting mainly of Portuguese Government Bonds and CGD Bonds, not including credit claims which could generate additional collateral. 15 June 2014
Funding and Liquidity Available Collateral Pool Covers Upcoming Maturities CGD’s Wholesale Redemptions Calendar (Outstanding as of August 2014) 2,229 1,047 1,030 845 780 527 467 284 2014 2015 2016 2017 2018 2019 2020 ab 2021 Low annual redemptions relative to CGD Group total funding resources. 16 June 2014
Funding and Liquidity Tapping International Capital Markets Issuer Caixa Geral de Depósitos SA Format 3 Year Senior Unsecured Announcement 27-Nov-12 Issue Size € 500 MM Coupon 5.625% Reoffer Yield 5.750% Bookrunners Caixa BI/ Credit Suisse/ JP Morgan/ Morgan Stanley 212 Investors Allocation by Geography Allocation by Type of Investor Other BeNeLux Middle East Insurance Spain 7% Switzerland 3% 2% 4% 5% 7% Germany & UK Austria 34% Banks 7% 23% Asset Managers Italy 66% France 10% 12% Portugal Other 12% 8% 17 June 2014
Funding and Liquidity Re-opening of the Portuguese Covered Bond Market Issuer Caixa Geral de Depósitos SA Format 5 Year Covered Bond Announcement 11-Jan-13 Issue Size € 750 MM Coupon 3.750% Reoffer Yield Mid-Swaps + 285 bps Bookrunners Caixa BI/Credit Suisse/UBS/Commerzbank/SG 192 Investors ; ‘A’ rating (DBRS) Allocation by Geography Allocation by Type of Investor Other Scandinavia Other Insurance 6% Portugal 7% 3% 8% Private Banks 10% Spain 2% 10% Switzerland 11% Banks Germany 25% &Austria Asset Managers UK 19% 62% 19% France 13% Andorra 1% Benelux Italy 2% 2% 18 June 2014
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