presentation h1 2016 financial results · presentation h1 2016 financial results september 2016....

Presentation

H1 2016 Financial Results

September 2016

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2

Table of Contents

H1 2016 at a glance 3

Loans 5

Funding 12

Capital 16

Profitability 20

APPENDIX 24

page


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3

H1 2016 at a glance


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H1 2016 at a glance

amounts in (€ m) 30.6.2016 31.12.2015 Change %

Total Loans before provisions 4,028.4 3,927.6 2.6%

Stock of Provisions 1,188.2 1,170.0 1.5%

Deposits 1,998.0 2,142.5 -6.7%

Assets 3,711.2 3,669.3 1.1%

amounts in (€ m) 30.6.2016 30.6.2015 Change %

Net Interest Income 44.9 46.5 -3.3%

Net Fee and Commission Income 8.1 11.5 -30.0%

Other Income 1.7 16.5 -89.9%

Total Net Operating Income 58.4 75.7 -22.9%

Personnel Expenses 21.5 21.2 1.4%

Total Operating Expenses(excluding depreciation and provisions for credit

and other risks) 36.7 34.9 6.2%

Provisions for credit and other risks 20.1 513.9

Profit / (loss) after taxes -8.8 -300.3

Capital

Balance Sheet Highlights

Profitability

Data on a consolidated basis

Profit before provisions for credit and other

risks: 16.9 million euros.

NPE formation slowed down marginally in thesecond quarter of 2016

NPE ratio: 58.5%

NPE coverage ratio: 50.4%

NPE total coverage ratio: 100%

Total Assets up by 1.14% when compared to FY2015.

4

CET 1 ratio at 17.2%, among the highest in the sector.


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Loans

5


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6

Total loan book at € 4.03 bn. as at 30 June 2016.

The Bank holds c. 80% of total portfolio in loans to businesses,

c. 13% in mortgage loans and the remaining 7% in other retail

loans.

Provisions as at 30 June 2016 stood at c. 29.5 % of total gross

loans (€ 1.19 bn).

Loan Portfolio Breakdown – 30.6.2016 Gross Loans (€ bn) and Provisions/Gross Loans (%) -

30.6.2016

Loan Portfolio Overview

Large Corporates

28.8%

SMEs30.2%

SBLs20.9%

Mortgages12.7%

Consumer7.5%

2.73 2.76 2.84

1.06 1.17 1.19

27.9%

29.8% 29.5%

26.5%

27.0%

27.5%

28.0%

28.5%

29.0%

29.5%

30.0%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

H1 2015 FY 2015 H1 2016Net Loans Provisions Provisions/Gross Loans (%)

€ 3.93 bn€ 3.79 bn € 4.03 bn


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7

Loan Portfolio OverviewBreakdown of Loan Portfolio by Type – 30.6.2016

(Total loans before provisions: € 4.03 bn)

Loans to Private Individuals by Type – 30.6.2016

(Total: € 0.79 bn)

Loans to Businesses by Sector – 30.6.2016

(Total: € 2.90 bn) (1)

(1) Excluding leasing balances

Loans to Private

Individuals19.7%

Loans to Businesses

72.1%

State0.8%

Leasing7.4%

Credit Cards7.6%

Consumer Loans29.0%

Mortgages62.1%

Other1.3%

Agriculture0.4%

Trade22.2%

Industry13.1%

Manufacturing2.3%

Tourism7.9%Shipping

1.3%

Construction26.2%

Other26.7%


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8

Asset Quality

Stock of provisions (€m) and NPE provision coverage post

write-offs (%)NPEs, total coverage (%), 30.6.2016

AQR performed in 2015 by the Bank of Greece following the

methodology used by the ECB for the four largest Greek

Banks.

Provisions of € 628 million booked in 2015 referring to the

legacy portfolio. In the first half of 2016, new provisions

amounting to € 20 million were booked.

Stock of provisions accounts fοr c. 29.5% of total gross

loans.

1,8632,218 2,356

49.2%

56.5%

58.5%

46.00%

48.00%

50.00%

52.00%

54.00%

56.00%

58.00%

60.00%

0

500

1,000

1,500

2,000

2,500

H1 2015 FY 2015 H1 2016

Stock of NPEs (EUR m) and NPE ratio (%)

NPEs NPEs %

1,0561,170 1,188

56.7%

52.8%

50.4%

42.0%

44.0%

46.0%

48.0%

50.0%

52.0%

54.0%

56.0%

58.0%

0

200

400

600

800

1,000

1,200

1,400

H1 2015 FY 2015 H1 2016

Stock of provisions NPEs provision coverage %

50.4%

50.4%

100.0%49.6%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Provisions Collateral Total coverage


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Concentration of NPEs - 30.6.2016Breakdown of NPEs by type, 30.6.2016 (1)

9

Asset Quality

Supportive new legislation in force for effective NPE management

Faster and smoother process expected to maximize efficiency and to be translated in cost reduction

The concentration of a large part of NPEs into a limited number of customers can increase the effectiveness of the

NPE management processes.

(1) Consumer credit includes credit cards (~2% of total NPEs)

Large Corporates

15.4%

SMEs36.7%

SBLs28.9%

Mortgages10.0%

Consumer Credit9.0%

56.6%

79.3%

87.6%

94.1%

98.7% 99.2% 99.6% 99.8% 99.9% 100.0%

2451,225

2,449

4,898

12,245

14,694

17,143

19,592

22,041

24,489

0

5,000

10,000

15,000

20,000

25,000

30,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

56.6% 79.3% 87.6% 94.1% 98.7% 99.2% 99.6% 99.8% 99.9% 100.0%

NPEs, CUMULATIVE

BALANCES

CUSTOMERS


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10

Asset Quality

Evolution of total portfolio, collateral value (€m), and coverage

of gross loans by collateral (%)Evolution of NPE portfolio collateral value (€m) and collateral

coverage (%)

Breakdown of total collaterals (€ m) by type – 30.6.2016

Note: All collaterals presented at fair

value. Personal and corporate guarantees

not included.

3,785 3,928 4,028

1,975 2,025 2,075

52.2% 51.5% 51.5%

51.0%

51.2%

51.4%

51.6%

51.8%

52.0%

52.2%

52.4%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

H1 2015 FY 2015 H1 2016Total gross loans Total collateral fair value

2,2182,356

1,102 1,167

49.7% 49.6%

49.5%

49.5%

49.5%

49.6%

49.6%

49.6%

49.6%

49.6%

49.7%

49.7%

0

500

1,000

1,500

2,000

2,500

FY 2015 H1 2016

Total NPEs Total NPEs collateral fair value

1,446

2,075

97

532

Real Estate Stateguarantees

Other collateral Total


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Evolution of NPEs, FY 2015 – H1 2016 (€m)

11

Asset Quality

New NPE formation slowed down slightly in the second quarter of the

year, following the trend observed since the last quarter of 2015.

2,2182,356

7068

0

500

1,000

1,500

2,000

2,500

4Q15 1Q16 2Q16 Total


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Funding

12


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13

Evolution of Deposits

As at June 30th 2016, deposits stood at approximately € 2.0 bn. The

Bank’s deposits are generated mainly from retail clients.

Core deposits (sight and savings) account for 49.6% of total

deposits, as deposits mix has changed after the introduction of

capital controls in the summer of 2015.

Breakdown of deposits by type, 30.6.2016

Breakdown of deposits by type of customer,

30.6.2016

Deposit Balances, Dec. 2015 - Aug. 2016

Current accounts

23.8%

Savings accounts

25.8%

Time Deposits

50.0%

Other0.5%

Private individuals

65.1%

Businesses15.1%

Public Sector17.0%

Other2.9%

1,950

2,000

2,050

2,100

2,150

Dec.2015

Jan.2016

Feb.2016

Mar.2016

Apr.2016

May2016

June2016

July2016

Aug.2016

EU

R m

illio

n


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14

Funding and Liquidity

Following the elimination of costly deposits at the

end of 2015, deposit costs have been dropping in

2016.

208

169165

162160 159 158 157 156

140

150

160

170

180

190

200

210

220

Dec-15 Feb-16 Apr-16 Jun-16 Aug-16

bp

s

Cost of deposits: Term Deposits (stock)

165

118 118 117 116 116 116 115 114

100

110

120

130

140

150

160

170

Dec-15 Feb-16 Apr-16 Jun-16 Aug-16

bp

s

Cost of Deposits: Total Deposits (stock)


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15

Eurosystem Funding

Eurosystem funding (% of total assets) H1 2015- H1 2016

Net Loans to Deposits ratio (%) As at 30.06.2016, Eurosystem funding amounted to 970 million euros.

Eurosystem funding as a percentage of total assets close to system

average (~24%).

Pillar II bond (Law 3723/08) used for Eurosystem financing operations

matured in July 2016.

106.6%

128.7%

142.2%

H1 2015 FY 2015 H1 2016

25.0%

21.3%

26.1%

H1 2015 FY 2015 H1 2016


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Capital

16


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17

Capital Position

In December 2015 Attica Bank managed to raise 681 million euros (i.e. 91% of

the amount under adverse scenario). Several alternatives are being considered

for covering the remaining amount. The CET 1 ratios of the Group as at

30.6.2016 are shown in the diagram below.

Following the Comprehensive Assessment performed by the Bank of Greece in

2015, the final capital needs of the Bank were identified at €584 million under the

baseline scenario and €748 million under the adverse scenario.

Fully-loaded Basel III CET 1, 30.06.2016 Capital adequacy ratios, 30.06.2016

Phased-in Fully -loaded

CET-1 Capital (euro 000s) 606,235 481,683

Total Regulatory Capital (euro 000s) 606,235 481,683

RWAs (euro 000s) 3,534,658 3,534,658

CET-1 Ratio 17.2% 13.6%

Total Capital Ratio 17.2% 13.6%

17.2%16.5%

13.6%(68 bps)

(283 bps)

CET1 30.06.2016 Transitionaladjustments

phase out

Fully loadedincl.pref.shares

Preferenceshares

Fully loadedCET1 30.06.2016


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18

Capital Position

Risk Weighted Assets (€ m) - 30.6.2016Equity Breakdown (€ m) - 30.6.2016

701.8

100.2

240.9

-374.1

1.4

H1 2016

Minority rights

Retained earnings

Reserves

Preference shares

Common shares

2,8573,188 3,321

3221

19158

158194

H1 2015 FY 2015 H1 2016

Credit Risk Market Risk Operational Risk


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Shareholder Structure

After the completion of the SCI in 2015, Attica Bank

is the only bank of meaningful size in Greece

without any support from the Hellenic Financial

Stability Fund (no Relationship Framework

Agreement with the HFSF).

19

TSMEDE: Pension fund of the

construction sector (engineers and

public works contractors)

TAPILTAT: Pension fund of the

banking sector

Free Float: About 20,000

shareholders

TSMEDE56.3%

ΤΑPILTAT7.9%

Other shareholders

35.9%


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Profitability

20


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21

Operating Income. Operating Expenses

Evolution of key P&L aggregates, H1 2015 - H1 2016 (EUR m) Operating income by source (EUR m)

OPERATING INCOME H1 2016 H1 2015

Net interest income44.9 46.5

Net fee and commission income8.1 11.5

Gain/ loss from securities3.7 1.1

Other income 1.7 16.6

Total Operating income58.4 75.7

Operating income by segment (EUR m)

17.14.0

56.5

45.7

2.1

8.8

H1 2015 H1 2016

Retail Banking Business Banking Treasury

41.1 16.9

514.2

26.8

-473.1

-9.9

-600.00

-400.00

-200.00

0.00

200.00

400.00

600.00

H1 2015 H1 2016

Profit before provisions for credit and other risks

Provisions for credit and other risks

Profit before Taxes


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22

Operating Income - Operating Expenses

NII breakdown H1 2015 - H1 2016 (EUR m) Net Interest Margin- NIM (%)

NIM: Annualized Net Interest Income / Average Assets

46.5

12.2

-3.5 -5.6 -4.6

45.0

H1 2015 NII Reduction ofcost of

deposits

Wholesalefunding

Securities &other

Loans H1 2016 NII

2.5%

2.4% 2.4%

2.5%

2.4%

H1 2015 Q3 2015 FY 2015 Q1 2016 H1 2016


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23

Operating Expenses

Cost / Income Ratio (excl. provisions for credit and other

risks)

Operating expenses

by category (EUR m.) H1 2016 H1 2015 change %

Personnel 21.5 21.2 1.4%

General Administrative* 21.9 13.7 60.7%

Depreciation 2.7 2.1 31.9%

TOTAL 46.2 37.0 25.0%

Breakdown of general operating expenses

(€21.9m for H1 2016)

H1 2016 H1 2015

Rents 14.6% 19.9%

Advertising and promotion expenses 1.8% 2.4%

Telecommunication expenses 4.5% 7.3%

Repairs and maintenance 3.4% 5.0%

Utility Services 2.8% 4.5%

Third party fee and expenses 18.5% 17.0%

Visa expenses 5.0% 5.0%

Provisions for other risks 30.8% 2.2%

Other 18.6% 36.7%

TOTAL 100.0% 100.0%

48.4%

67.5%

H1 2015 H1 2016

* Includes provisions for other risks


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Appendix

24


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Group P&L and balance sheet

25

GROUPAmounts in € million

ASSETS H1 2016 FY 2015

CHANGE.

%

Cash and balances with the Central

Bank 47 50 (5.9)

Due from other financial institutions 5 10 (53.0)

Derivative financial instruments-

assets 1 0 59.1

Financial assets at fair value through

profit and loss 7 7 1.7 Loans and advances to customers

(net of provisions) 2,840 2,757 3.0

Financial assets available for sale 63 63 (0.5)

Investments held to maturity 10 10 (0.2)

Investments in subsidiaries 0 0

Investments in associates 11 15 (29.5)

Property. plant. and equipment 30 30 (1.7)

Investment Property 59 58 0.8

Intangible assets 42 37 11.4

Deferred tax assets 393 389 0.9

Other assets 206 242 (14.9)

TOTAL ASSETS 3,711 3,669 1.1

LIABILITIES

Due to Financial Institutions 977 784 24.7

Due to customers 1,998 2,143 (6.7)

Derivative financial instruments-

liabilities 0 0

Debt securities issued 0 0

Defined benefit obligations 13 11 17.1

Other provisions 25 21 21.9

Deferred tax liabilities 6 5 21.7

Other liabilities 22 27 (17.7)

Total Liabilities 3,041 2,989 1.7)

EQUITY

Share capital (common shares) 702 702 0.0

Share capital (preference shares) 100 100 0.0

Convertible Bond loan 0 0

Share premium 0 0

Reserves 241 242 (0.5)

Retained earnings (374) (365) 2.4

Equity Attributable to equity owners

of the Bank 669 679 (1.5)

Non-controlling interests 1 1 (5.2)

Total Equity 670 680 (1.5)

TOTAL LIABILITIES & EQUITY 3,711 3,669 1.1

Amounts in € million

H1 2016 H1 2015 CHANGE %

Interest and similar income 73 84 (13)

-Less: Interest Expense and similar charges (28) (37) (25)

Net interest income 45 47 (3)

Fee and commission income 9 13 (30)

-Less: fee and commission expense (1) (1) (26)

Net fee and commission income 8 12 (30)

Dividend income 0 0

Profit (loss) from trading portfolio 3 0 567

Profit (loss) from investment portfolio 1 1 (10)

Income from securities 4 1 241

Other income 2 17 (90)

TOTAL OPERATING INCOME 58 76 (23)

Provisions for credit risks 20 514 (96)

Salaries, wages and personnel expenses 22 21 1

General operating expenses 22 14 61

Depreciation 3 2 32

TOTAL OPERATING EXPENSES 66 551 (88)

Total Operating Expenses (Excluding

provisions) 46 37 25

Income from investments in associates (2) 2

PROFIT / (LOSS) before taxes (10) (473)

Taxes 1 173

PROFIT / (LOSS) AFTER ΤΑΧ (9) (300)


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26

Group results by segment

H1 2016 H1 2015 Total

Amounts in EUR m RetailBusiness

Banking

Investment

Banking &

Treasury

RetailBusiness

Banking

Investment

Banking &

Treasury

H1 2016 H1 2015 Change %

Operating Income 4.0 45.7 8.8 17.1 56.5 2.1 58.4 75.7 -22.9%

- Net interest income -1.0 50.8 -4.9 0.8 47.7 -1.9 45.0 46.5 -3.3%

- Net fee and commission income 1.5 6.3 0.3 1.0 11.1 -0.6 8.1 11.5 -30.0%

- Income from trading & other income 0.5 0.9 4.0 6.2 9.9 1.5 5.3 17.6 -69.7%

- Adjustment between segments 2.9 -12.3 9.4 9.1 -12.3 3.2 0.0 0.0

Income from investments in associates -0.4 -1.6 -0.1 0.4 1.5 0.1 -2.0 2.0

Profit / (loss) before taxes -13.8 -3.6 7.5 -77.7 -395.6 0.2 -9.9 -473.1

Taxes 1.2 172.8

Profit / (loss) after taxes -8.8 -300.3

Provisions for credit risks and

securities impairment -8.6 -11.4 -0.1 -87.8 -425.2 -0.9 -20.1 -513.9 -96.1%

Depreciation -0.5 -2.1 -0.1 -0.4 -1.6 -0.1 -2.7 -2.1 31.9%

Total Assets 694.7 2,844.6 171.9 714.5 2,648.9 200.8 3,711.2 3,564.3 4.1%

Total Liabilities -1,973.9 -1,067.2 0.0 -2,060.3 -1,453.1 0.0 -3,041.1 -3,513.4 -13.4%


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Key financial ratios. H1 2015 – H1 2016

27

GROUP BANK

BALANCE SHEET STRUCTURE H1 2015 FY 2015 H1 2016 H1 2015 FY 2015 H1 2016

Due to Customers / Loans and Advances to customers

(before provisions)67.6% 54.5% 49.6% 68% 54.9% 50.0%

Due to Customers / Loans and Advances to customers

(after provisions)93.8% 77.7% 70.3% 94.4% 78.2% 70.9%

Due to Customers / Total Assets

71.8% 58.4% 53.8% 72.2% 58.7% 54.2%

Loans and Advances to customers (after provisions) /

Total Assets76.6% 75.1% 76.5% 76.5% 75.1% 76.4%

Total Equity / Total Assets

1.4% 18.5% 18.1% 1.2% 18.3% 17.9%

Total Equity / Due to Customers

2.0% 33.9% 33.5% 1.7% 31.2% 33.0%

EFFICIENCY

Profit before taxes / Average Equity (RoAE) -466.3% -116.8% -2.9% -483.5% -119.0% -2.3%

Profit before taxes / Average Total Assets (RoAA) -25.2% -15.9% -0.5% -25.2% -15.9% -0.4%

Total operating expenses less provisions for credit risk /

Total Assets 2.1% 2.6% 2.5% 2.0% 2.5% 2.4%

NPE ratio 49.2% 56.5% 58.5% 49.2% 56.5% 58.5%

Provisions / NPEs 56.7% 52.8% 50.4% 56.7% 52.8% 50.4%


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ATTICA BANK S.A.

Contact Information:Strategy and Corporate Communication Division

23 Omirou Str. 106 72. Athens. Greece

e-mail: [email protected]

Tel.: +30 210 3669000

By receiving this document. the Recipient accepts and agrees to be bound by the following obligations and limitations:

The above material has been prepared by Attica Bank for the exclusive use of the selected parties to whom it is delivered. Neither

the whole ore any part of the information in this presentation may be disclosed to. or used by any other person or used for any

other purpose without the prior consent of Attica Bank.

Neither Attica Bank nor any of its connected persons accept any liability or responsibility for the accuracy or completeness of. nor

make any representation or warranty. express or implied. with respect to. the information on which this material is based or that this

information remains unchanged after the issue of this presentation. In addition. the reader of the material agrees that Attica Bank

and all “connected persons” neither owe nor accept any duty or responsibility to the former. whether in contract or in tort (including

without limitation. negligence and breach of statutory duty). and shall not be liable in respect of any loss. damage or expense of

whatsoever nature which is caused by any use the reader may choose to make of this material. or which is otherwise consequent

upon the gaining of access to the report by the reader.

The content of this material should not be construed as a solicitation or a recommendation. It has been prepared for information

purposes only and is purely indicative. It does not constitute an offer or invitation for sale or purchase of securities or any of the

businesses or assets described herein or any form of commitment. advice. recommendation or valuation opinion on the part of

Attica Bank or its connected persons. No part of this material should form basis of or can be relied upon in connection with any

contract or investment decision or commitment relating thereto.

This material should not be regarded by the Recipient as a substitute for the exercise of its own judgment and the Recipient is

expected to rely on its own due diligence. if it wishes to proceed further.

Additionally. the Recipient should not construe the contents of this material as legal. tax. accounting or investment advice. The

Recipient should consult its own independent counsel. tax and financial advisers as to financial. tax legal and related matters

concerning any transaction described herein. This material does not purport to be all-inclusive or to contain all of the information

that the Recipient may require or request.

The present material may contain targets. prospects. returns and/or opinions which obviously involve elements of subjective

judgment. Any opinions expressed in this material are subject to change without notice. Forward looking statements may also be

contained. Attica Bank gives no undertaking and is under no obligation to update these targets. prospects or potential statements

for events or circumstances that occur subsequent to the date of this material or to update or keep current any of the information

contained herein and this material and there exists no representation that it will do so.

Actual results will vary from the projections or targets mentioned and such variations may be material.

In this notice “Attica Bank” means Attica Bank S.A. and its “connected persons” means the shareholders. subsidiaries and the

respective directors. officers. employees and agents of each of them.

presentation h1 2016 financial results · presentation h1 2016 financial results september 2016....

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