Apresentação dos Resultados Click to edit Master title style CGD A Financial Reference in Portugal A Trade Route Connecting Four Continents Investor Presentation June 2013 (1Q2013 unaudited accounts)
Agenda Highlights CGD Overview Summary Conclusions Appendix 1: Economic Update Appendix 2: CGD Ratings and Consolidated Main Financial Indicators 2 June 2013
A Financial Reference in Portugal A Trade Route Connecting Four Continents • Strong franchise as a universal bank an a dominant financial group in Portugal Market Leadership • Increasing contribution from fast growing international operations in Angola, and Geographical Mozambique and Macao Diversification • Connecting dominant global trade flows on strong platforms in 4 continents • Focus on operational rationalisation and efficiency Profitability • Increasing emphasis on international business • #1 market share in deposits with loyal and growing customer base Funding and • Reduction of ECB funding and strong increase in collateral pool Liquidity • Healthy capital base comfortably above both national and european regulatory Solvency requirements • Diversified portfolio with no major exposures to specific segment or sector • Rigorous and prudent risk management and provisioning Asset • Focus on banking activity and adjusting business mix towards the tradable Quality sector • CGD s activity, in 2012, earned it the “Most Sustainable Bank in Portugal in 2012”, distinction of The New Economy • CGD continues to further a structured, comprehensive sustainability Sustainability programme, recognised by domestic and international entities which monitor and audit its performance 3 June 2013
Agenda Highlights CGD Overview Summary Conclusions Appendix 1: Economic Update Appendix 2: CGD Ratings and Consolidated Main Financial Indicators 4 June 2013
CGD Group Overview Loans and Advances to Customers Market Share - Portugal • Established in 1876 and fully owned by the % Portuguese State 21.3% 21.3% 20.9% • Strong franchise as a universal Bank and a dominant financial group in Portugal • Leading position in the retail market with more than 5 million customers in Portugal • Largest international platform among Portuguese Dec-11 Dec-12 Feb-13 banks: 23 countries/4 continents Deposits from Customers • Total network of 1,285 branches connecting Market Share - Portugal developed countries with the fast growing % economies around the world, from which: 28.1% 28.1% 27.6% 822 in Portugal and o 463 branches abroad o • “ Most Sustainable Bank in Portugal in 2012 ” – prize awarded in 2013 by The New Economy Dec-11 Dec-12 Feb-13 5 June 2013
Agenda Highlights Profitability Summary Conclusions Appendix 1: Economic Update Appendix 2: CGD Ratings and Consolidated Main Financial Indicators 6 June 2013
Profitability Net Income Impacted by the Recessive Economy and Euribor Evolution Net Interest Income Operating Costs M € 1,685.5 1,775.7 1,718.0 1,343.7 386.4 416.8 379.0 197.0 Dec-11 Mar-12 Dec-12 Mar-13 Dec-11 Mar-12 Dec-12 Mar-13 • Deterioration of net interest income due to Euribor declining trend. • Notwithstanding the reduction of the base salary for CGD Portugal employees (approximately 9%), the consolidated staff costs increased above € 40 million. This increase was due a non-recurrent event, the reintroduction of the holiday and Christmas subsidies decided by the Constitutional Court. • The other administrative expenses maintained their declining trend. 7 May 2013
Profitability Net Income Impacted by the Recessive Economy Net Income Evolution Impairments and Provisions M € M € 1,653.5 1,546.5 278.9 250.6 537.9 827.6 774.9 8.8 684.1 -36.4 405.8 267.3 329.5 1,008.6 194.8 825.9 89,3 47.5 2009 2010 2011 2012 Mar-12 Mar-13 416.8 369.1 240.2 147.3 2009 2010 2011 2012 Mar-12 Mar-13 -394.7 Credit Impairment (net) -488.4 Provisions and Impairment of other assets (net) • Consolidated net income for 1Q2013 was penalised by persistent difficulties of Portuguese economic context. • Continued rigorous and prudent risk management and provisioning. 8 June 2013
Agenda Highlights Geographical Diversification Summary Conclusions Appendix 1: Economic Update Appendix 2: CGD Ratings and Consolidated Main Financial Indicators 9 June 2013
Geographical Diversification Global Strategy Iberia (Portugal and Spain) Macao / South China Africa Brazil (Angola, Mozambique and South Africa) Large network connecting mature and fast growing markets 10 June 2013
Geographical Diversification Global Strategy – GDP Growth 1% 1% 7.5% 7.5% EURO AREA France 1.7% Spain 0.5% DEVELOPING ASIA China 8.4% Brazil 3.8% 5.5% Angola 6.0% 3.8% Cape Verde 4.7% Mozambique 7.8% SUB-SAHARAN AFRICA LATIN AMERICA South Africa 3.1% AND THE CARIBBEAN Source: IMF statistics Annual average of GDP growth rate for the period 2011-2018 % 11 June 2013
Profitability Connecting Mature and Fast Growing Markets International Activity Contribution M € M € Net Operating Income by Jurisdiction Net Income by Jurisdiction 12.6 12.0 12.3 80.2 Mar-12 Mar-13 79.0 7.9 4.6 3.5 2.0 35.1 35.2 -3.0 26.5 27.3 Asia Africa Europe (ex. America Spain 18.5 19.0 Spain) 8.8 4.5 Asia Africa Europe (ex. America Spain Mar-12 Mar-13 -36.0 Spain) -39.4 • Angola, Mozambique and South Africa (Africa) and Macao, South China (Asia) outperformed in both net operating income and net income. • Impairment increase in Spain impacted net income negatively in this jurisdiction. • International activity net income contribution, excluding Spain, amounted to 25 M € in March 2013. 12 June 2013
Geographical Diversification Pursuing Earnings Diversification International Activity Contribution M € Net Assets Gross Operating Income Net Operating Income (158 M € ) (59 M € ) (19,980 M € ) 39% 28% 17% International business contributed with 59.2 M € (39%) to CGD Group gross operating income in March 2013. 13 13 May 2013
Agenda Highlights Funding and Liquidity Summary Conclusions Appendix 1: Economic Update Appendix 2: CGD Ratings and Consolidated Main Financial Indicators 14 May 2013
Funding and Liquidity Deposits as the Major Funding Contributor Funding Structure % % Funding Sources Retail Funding Breakdown 4% 4% 4% 11% 12% 15% 7,4% 7,7% 8,2% 11,5% 11,5% 14,7% 85% 84% 81% 80,8% 80,3% 77,9% Dec-11 Dec-12 Mar-13 Dec-11 Dec-12 Mar-13 Customer Deposits Bancassurance Central banks + Credit Institutions Resources (net) Other Customer Resources Institutional (Bonds+CP) + Portuguese State (CoCos) Retail Sound liquidity profile, due to a large and stable deposit base: • 3/4 of deposits from households • 2/3 of deposits are term and savings deposits. 15 June 2013
Funding and Liquidity Strong Deposits Growth, Led by Households Deposits Evolution Overall Deposits Evolution Deposits Mix Evolution – Domestic Market B € % 65.5 64.0 65.3 60.2 57.8 11% 12% 13,3 14,2 11,6 9,9 9,2 89% 88% 52,4 52,2 51,2 50,3 48,6 2009 2010 2011 2012 Mar-13 Dec-12 Fev-13 Households Other Domestic market International Source: Monetary and financial statistics • Sustainable deposits growth driven by households, notwithstanding the difficult economic environment. • CGD Group maintains the leading position in the Portuguese Deposits market. 16 June 2013
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 BeNeLux Middle East Other Insurance Spain Switzerland 7% 3% 2% 4% 5% 7% Germany & UK Austria 34% Banks 7% 23% Investment Italy Funds France 10% 66% 12% Portugal Other 12% 8% 17 June 2013
Funding and Liquidity Tapping International Capital Markets Issuer Caixa Geral de Depósitos SA Format 5 Year Covered Bond Announcement 11-Jan-13 Issue Size € 750 MM Coupon 3.750% Reoffer Yield 3.835% 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 Portugal 6% 7% 3% 8% Private Banks 10% Spain 2% 10% Switzerland 11% Banks Germany 25% &Austria Investment UK 19% Funds 19% 62% France 13% Andorra BeNeLux Italy 1% 2% 2% 18 June 2013
Funding and Liquidity Loans-to-Deposits Ratio Loan-to-Deposit Ratio Loans-to-Deposits Ratio Evolution % The loans-to-deposits ratio, measured by net credit to 136.0% 133.6% customer deposits, at 122.2% 114.0% 113.3% 113.3%, is already lower than the maximum indicative ratio of 120% set for Portuguese banks by 2014 under the Economic and Financial Assistance Programme. 2009 2010 2011 2012 Mar-13 Loans-to-Deposits Ratio below the 120% target for Portuguese banks 19 June 2013
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