Attica Bank
Presentation
September 2014
Table of Contents
Company Snapshot and forthcoming capital increase
Page
3
Company Profile
13
Attica Bank in H1 2014
17
Assets-Loan Portfolio
19
Deposits, Funding
24
Profit & Loss Account
28
Capital
32
Strategic Aspiration
35
Appendix
37
2
Attica Bank
Company Snapshot and
Forthcoming Capital increase
3
Introduction
Attica Bank
Transaction background
Attica Bank S.A ("Attica" or the "Bank") is the fifth largest bank in Greece,
with total assets of €4.0 billion, offering retail and corporate banking
services.
•Network of 70 branches in all major cities in the country
•Market share in loans of 2% with the four systemic banks holding
c. 92%
•Last remaining bank of a meaningful size in Greece, where the Hellenic
Financial Stability Fund does not own any shares
Listed on the Athens Exchange since 1964 with a market capitalisation of
€127 million as of 29 August 2014.
As of 30 June 2014 Attica Bank had 887 employees.
Attica was the only Greek bank that managed to raise its full 2013 capital
requirement of c. €400 million via private sources.
•The Pension Fund of the Engineers and Public Works Contractors (ETAATSMEDE), its core shareholder, contributed c. €210 million
On 6 March 2014 the Bank of Greece (“BoG“) published the results of its
latest stress test conducted with the assistance of BlackRock Solutions.
• Accordingly, BoG based on the assessment of the asset quality review of
the loan portfolio and the stress exercise on the restructuring plan
submitted by the Bank, identified Attica Bank’s capital shortfall to be
–
€397 million under the base case scenario, and
–
€434 million under the adverse case
The Bank in accordance with the capital plan submitted to BoG will meet
these requirements through a combination of a share capital increase and
the implementation of additional internal capital generation actions.
In this regard, the Bank has announced that it is seeking a strategic investor
group who will participate alongside the Bank’s existing shareholders in the
capital increase
% Private ownership
in Greek banks
Current shareholding
structure
Click to edit Master text styles
Second level
Third level
Fourth
Capital requirements in the Greek banking
sector level
Bank of Greece / BlackRock capital requirements
Fifth level
6,000
(€m)
4,000
ETAATSMEDE
51%
2,000
4,980
2,945
2,183 2,502
425 757
397 434
0
Base
Source:
262 560
Adverse
Company information
4
Recent macroeconomic and banking sector developments
Positive GDP evolution in the last quarters
•
After losing its competitiveness during the crisis the Greek economy is
currently experiencing improved macroeconomic indicators
•
Greece has returned successfully to the bond market after an absence
that lasted for more than four years
•
•
The economic outlook is significantly improving towards an expansion
phase, which should accelerate the recovery of the driving sectors of
the Greek economy
The recent negative GDP rates are likely to register a sharp
deceleration over the next quarters following the positive trends of the
first half 2014 ``
Greek GDP Change yoy (%)
Source:
Loan quality normalisation for the Greek banking system
•
The continued stabilisation of the loan quality of the Greek banks is
reflected in the significant drop of the NPL formation in the second
quarter of 2014
•
Macroeconomic improvement is the key driver of such a positive
development
•
Effective NPL management through specialised units across the sector
is an additional development that shapes a positive outlook for the
Greek banks
Click to edit Master text styles
Second level
Third level
level
NPL formation for the systemic banksFourth
(€mn)
Fifth level
Company information
5
Key highlights
A pure play on the Greek banking sector – Highly concentrated banking market in a recovering economy providing structurally
strong profitability
•
Post the recent consolidation wave, Greece is the most concentrated banking market in Europe and the oligopolistic market structure
provides a sound backdrop for attractive sector profitability, driven by margin expansion from reduction in funding costs and normalisation
of the cost of risk
•
The bank is positioned to capitalise on the Greek recovery through its strong expertise in the SME segment and the emergence of an unserviced market for mid-size clients post consolidation in the sector
•
Positioned to leverage on the growth in the construction sector on the back of strong relationship with civil engineers and
construction companies
1
3
4
5
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Second level
Third level
Fourth level
Fifth level
Restructuring potential offers strong upside opportunities
•
Cost base,indicates turnaround potential
•
Significant value upside via the optimisation of the management of the stock of NPLs
•
No near term uncertainty on capital for the Bank arising from the ongoing ECB stress test exercise
2
Optimum size and clear governance rights to unlock the value uplift
•
The only listed Greek bank without a Relationship Framework Agreement with the Hellenic Financial Stability Fund
Attractive entry valuation for a co-control opportunity
•
Attica is currently trading at 0.69x H1 2014 TBV (excluding €97m of CoCo) and 0.80x H1 2014 TBV proforma for the CoCo
conversion1
•
DTA represents c.45% of Attica TBV as of December 2013 (against a sector average of c. 61%2)
Strong funding profile and historically resilient asset quality
• Lowest Eurosystem funding reliance in the Greek sector (Eurosystem funding/total assets: Attica: 3%, Greek banking system: 11%)
• Attica has outperformed the market in deposit collection since 2012
• Attica Bank has the lowest NPL ratio among listed banks in Greece
Notes:
1
As of 29 August 2014
2
Sector average includes the average of NBG, Piraeus, Alpha and Eurobank
6
A pure play on the Greek banking sector 1
Business description
Attica Bank focuses on providing credit to small and medium
enterprises and private individuals in Greece. The Bank also offers a
wide range of deposit, investment and insurance products, mutual
funds and stock exchange transactions brokerage services.
Loans/deposits breakdown
Loans FY 2013
Deposits FY 2013
Business segments and products
•
Business banking
–
focusing on SME clients, it is the main segment of the bank,
mainly engaging with businesses clients in Athens and
Thesaloniki
–
product range goes from various secured and unsecured loans
and deposit options to basic business needs of SME clients
such as guarantees
•
Retail banking
–
retail banking has its core focus on deposit taking and
mortgage loans, with further consumer loan options and cards
business
•
Investment banking and treasury
–
capital markets activities on ATHEX such as underwritings and
secondary offerings, brokerage and advisory services
•
Other segments and products
–
asset management and brokerage business on the ATHEX
–
bancassurance
–
EU-sponsored projects
Source:
Company information
Notes:
1 Eurobank branches as of 31 December 2013
2 National Bank of Greece branches as of 31 December 2013
3 Represents total Group employees (excluding Turkey)
4 Eurobank employees as of March 2014
Total gross loans: €3.7bn
Total deposits: €3.3bn
% of assets in Greece (gross loans, H1 2014)
Number of branches—
branches—
Greece only (June 2014)
Number of employees—
employees—
Greece only (June 2014)
Bank
only: 887
911
1
2
3
4
7
A pure play on the Greek banking sector 1
Niche SME player in Greece with a captive and loyal client base
Loans breakdown by segment—
segment—H1 2014
•
Traditional full service commercial bank with a clear focus on the
SME segment
•
Opportunity to leverage on captive construction client base
•
More than natural market share in SME demonstrating the strength
of relationships and know how
•
The Bank is positioned to capitalise on the Greek recovery through
its expertise in the SME segment and the emergence of an unserviced market for mid-size clients post consolidation in the sector
•
Can leverage on the growth in the construction sector on the back
of strong relationship with civil engineers and construction
companies
Market share in SME segment—
segment—FY 2013 (%)
Attica
Sector2
Total loans: €3.7bn
Notes:
1 SME segment includes loans to small companies
2 Based on total Group loans; Sector represents average of Alpha bank, Eurobank, National Bank of Greece and Piraeus
bank; loans to small companies included in the retail portfolio
Loans breakdown by industry3—H1 2014
Attica
Sector2
Total loans: €2.5bn
Source:
Company information, Bank of Greece
Notes:
1 Exposure to construction sector includes letters of guarantees
2 Based on total Greek corporate loans; Sector represents average of Alpha bank, Eurobank, National Bank of Greece
and Piraeus bank
3 Excluding leasing
8
Restructuring potential offers strong upside opportunities 2
Opex optimisation
•
In H1 2014, personnel expenses were €22.7 million,
down by 15.0% on a YoY basis
•
Further room to reduce cost base
through restructuring
restructuring of Branches—ten branches already
closed in 2014
personnel Cost Reduction—Following the voluntary
redundancy scheme concluded in year end 2013,
the bank is in the process of rationalizing personnel
costs further
renegotiation of rents
control of subsidiaries’ Expenses
−
−
−
−
Opex/branches
Opex/branches (€
(€m)
Note:
1 Based on Greece numbers for FY 2013
NPL management
•
Income opportunity from more effective NPL book
management
•
Already comfortable coverage can be further
substantially increased without further cash
provisions via improved NPL book management
Income from NPLs—
NPLs—BoG adjusted (€
(€m)
Loans and deposits/branches (€
(€m)
Note: Based on Greece numbers for H1 2014
NPL coverage (Mar. 2014) (€
(€m)
As %
49.2
of NPLs
53.0
102.2
945
Source:
Company information, Blackrock/BoG stress test
Note:
1 2013–16 Capital generation per Attica Business Plan submitted for Blackrock/BoG exercise
9
Clear governance rights & optimum size to unlock the value uplift
3
Private ownership (%)
•
−
•
−
•
−
−
•
Attica Bank is the only bank of meaningful size in Greece
that weathered the crisis without any support from HFSF and
remained completely private
no Relationship Framework Agreement with HFSF
No integration burdens unlike systemic peers given no M&A
during crisis
clean slate to start with
Operations only in Greece providing pure play macro
exposure combined with clear governance rights to navigate
through the restructuring challenge and crystalise value uplift
small size allowing flexibility to steer the strategy in a
clear direction
opportunity to grow in an environment where systemic peers
are focused on downsizing their operations
As a point of reference Greek corporate law provides for the
right to appoint a Board member to any shareholder, in
accordance with the relevant provisions of the articles of
association and provided that the number of appointed
members does not exceed 1/3 of the total number of
members
Source:
% of loan book acquired vs. originated1
Market share (Gross loans, (%))2
Company information
Notes:
1 Estimated based on customer loans of acquired business at time of acquisition
2 As of December 2013
10
Attractive entry valuation for a co-control opportunity 4
Current trading P/TBV (x)
•
Trading at an attractive multiple to its Greek
peers with a higher quality tangible book value
•
Low DTA as a % of tangible book value
•
Within DTA, large share is PSI related, allowing
for 28 years utilisation
P/TBV entry multiple
in recent re-caps
1.14x
1.22x
1.00x
0.78x
Breakdown of tangible book value (€
(€m)
H1 2014
Total Equity
413
Less: Minorities
(2)
Less: Preference shares
(100)
Less: Outstanding convertible
(97)
Less: Goodwill & Intangibles
(30)
TBV
184
TBV per share
0.18
P/TBV as of 29 August 2014
0.69
Source:
Note:
data as of 29 August 2014
TBV as of H1 2014 = Total equity – goodwill – intangibles – minorities – hybrids – preference
shares
DTA/TBV (FY 2013 prepre-recaps, (%))
Breakdown of DTA
Total FY 2013: €83.0m
Source:
Note:
Company information, SNL
Share price of €0.122 as of 29 August 2014
Source:
Note:
Company information
TBV = Total equity – goodwill – intangibles – minorities – hybrids – preference shares
11
Strong funding and historically resilient asset quality 5
L/D ratio in Greece (H1 2014) (%)
•
Strong funding profile
•
Less than 100% LDR
•
Attica has
outperformed the
market in deposit
collection
•
Lowest Eurosystem
funding reliance in the
Greek sector
Deposit growth y-o-y (%)
Eurosystem funding (€
(€bn)
bn)
Euro funding/
Total assets
(gross, %)
2.5
14.0
11.3
14.2
9.9
0.1
1
Note
1
Note
Data as of Q1 2014
As of H1 2014
FY 2013
Source:
38.5
35.9
33.6
34.2
31.8
31.1
The only Greek listed
bank to report negative
NPL formation since
the beginning of the
year
29.3
•
27.4
Lowest 90dpd ratio
among Greek listed
banks
24.5
•
26.6
+90dpd ratio (%)
1H 2014
Company management,
Bank of Greece
12
Attica Bank
Company Profile
13
History of the Bank
1925
● Year of establishment
1964
● Listed on the Athens Stock Exchange
● Emporiki Bank acquires 70% of Attica Bank
1997
● Major shareholders:
The Engineers and Public Works Contractors' Pension Fund
(“TSMEDE”)
Loans and Consignments Fund
2002
● Major shareholders:
TSMEDE
Loans and Consignments Fund
Hellenic Postbank
● Changes achieved:
2004 – 2010
-
Balance sheet strengthening
Improved efficiencies
Growth and diversification
Systems and organisation
2011
● Calibration from the effects of the economic downturn
2013
• Successful completion of share capital increase by private sector
participation (no reliance on HFSF)
2014
● New business plan
● Share capital increase under way.
14
Profile
Distribution
Products and services to businesses and private individuals
● Network
-
Retail Customers
22.3% of the loan
book
Corporate & SMEs
76.7 % of the loan book
(as at June 2014: 2,838 € m.)
(as at June 2014 : 827 € m.)
-
Deposit accounts
-
Loans
-
Mortgages
-
Credit and Debit Cards
-
Investment products
(Mutual funds, Capital
Guaranteed Products)
-
Bancassurance
-
-
Deposit Accounts
-
Standing Orders
-
Loans
-
Capital Transfers
-
Corporate Bonds
-
Imports/Exports
-
Letters of Credit
-
-
Leasing, Factoring
Payroll and
pension payment
services
-
Bancassurance
-
Venture Capital
-
EU and Statesponsored Projects
Number of employees (Group / Bank)
911 / 887
Market share, Deposits (May. 2014)
2.0%
Market share, Loans (May. 2014)
1.7%
-
70 branches, including:
ƒ 34 in Athens
ƒ 8 in Thesaloniki
ƒ 28 in the Rest of Greece
84 ATMs
ƒ Most in branches
ƒ 14 located in premises of public
organisations and firms to facilitate
payroll services
e-banking services
8
34
15
The Attica Bank Group of Companies
100%
Mutual fund
management
99.99%
Venture capital fund
management
55.00%
Specialist investment
consulting services
100%
Insurance brokerage
100%
Real estate
investment
management
16
Attica Bank in H1 2014
17
Attica Bank in H1 2014
Profitability
amounts in euro millions
• Net interest margin: 2.51%
• Net interest income: +243 % y-o-y
• General operating expenses: - 9.3% y-o-y
• Personnel expenses: -15.0% y-o-y
• Profit before taxes: 4.6 million euros
Total Loans before provisions
Stock of Provisions
Deposits
Shareholders' Equity
Assets
Balance Sheet
• Total assets: +1.8% y-o-y
• Customer deposits: +21.1% y-o-y
• Loans in arrears > 90 days: 24.5%
• Non Performing Loans: -9% ytd
• Coverage ratio: 51.3%
• CET 1: 9.2%
• Tier I Capital Ratio (Tier I): 12.1%
• Capital Adequacy Ratio: 12.6 %
amounts in euro millions
H1 2014
FY 2013
Change %
3,701.8
3,736.9
-0.9%
466.4
436.4
6.9%
3,337.3
3,312.5
0.7%
412.7
408.2
1.1%
4,016.4
4,054.6
-0.9%
H1 2014
H1 2013
Change %
Operating Income
77.0
26.9
186.2%
350.5%
Personnel Expenses
22.7
26.7
-15.0%
General Operating Expenses
16.8
18.6
-9.3%
Profit/ (loss) before Provisions
34.7
-22.3
-255.5%
Provisions for credit risks
30.1
45.7
-34.2%
Profit / (loss) before taxes
4.6
-68.0
106.7%
-3.5
8.4
-141.8%
1.1
-59.6
101.8%
Taxes
Profit / (loss) after taxes
Data on a consolidated basis.
18
Attica Bank in H1 2014
Assets-Loan Portfolio
19
Attica Bank in H1 2014
Breakdown of Total Assets, (as at 30.6.2014: 4,016 € m.)
2.1%
In H1 2014:
•Total assets increased by 1.8% y-o-y.
0.8%
1.3%
5.3%
4.0%
4.8%
Cash, cash balances w ith the central
bank, due from other financial
institutions
Securities portfolios
0.8%
0.5%
Loans and advances to custom ers (net
of provisions)
•Loans before provisions were stable y-o-y.
• As at 30.6.2014, the Bank held 143 million of
Greek Government securities, out of which 113.6
million refer to Treasury Bills.
Investm ents in associates
Property, plant and equipm ent
Investm ent property
Intangible assets
Deferred tax assets
80.6%
Other assets
Data on a consolidated basis.
20
Attica Bank in H1 2014 – Loan Portfolio
Breakdown of the loan portfolio by type, (H1 2014: 3,702 € m. )
State Leasing
1.0% 7.9%
Private
Individuals
22.3%
Businesses
68.7%
Loans to Private Individuals by type, (H1 2014: 827,3 € m.)
Other
1.8%
Credit Cards
6.7%
Consumer
Loans
28.2%
Loans to businesses by sector, (H1 2014: 2,838 € m.)
Other
24.5%
Agriculture
0.8%
Trade
19.4%
Industry
19.1%
Mortgages
63.4%
Construction
26.0%
Shipping Tourism Manufacturing
2.8%
6.1%
1.4%
Data on a consolidated basis
21
Attica Bank in H1 2014 – Loan Portfolio
Since 2009 the Greek banking system has been
facing increased challenges as a result of
worsening macroeconomic conditions.
As shown in the diagrams, in the last years NPL
ratios for Attica Bank have been below the sector
average, as the Bank mainly focuses in business
loans (76.6% of the loan portfolio) that display lower
NPL ratios.
Since the last quarter of 2013 the formation of
NPLs has been reversed.
Source: Bank of Greece and Attica Bank. Sector ratios for March and June 2014 refer to estimates.
22
Attica Bank in H1 2014 – Loan Portfolio
NPLs H1 2013- H1 2014 (euro million)
As at 30.06.2014 the NPL ratio of the Bank (loans in arrears
for more than 90 days) stood at 24.5% (Dec. 2013: 26.6%).
- 94.4 € m
1020
+ 66.7 € m
1002.9
Accumulated provisions for non-performing loans amounted to
466.4 million euros, displaying an annual increase of 15.9%.
1000
980
960
940
936.2
920
908.5
900
The Bank formed loan loss provisions of about 30 million
euros in H1 2014 to cover credit risk.
The coverage ratio for loans that are more than 90 days in
arrears was 51.3% as at 30.6.2014.
880
860
H1 2013
FY 2013
H1 2014
Stock of Provisions, H1 2014 (euro million)
NPL ratio (loans in arrears > 90 days), Coverage ratio
+6.9%
480
466.4
+8.4%
460
436.4
440
420
402.5
400
380
360
June 2013
Dec. 2013
June 2014
Data on a consolidated basis.
23
Attica Bank in H1 2014
Deposits, Funding
24
Attica Bank in H1 2014 - Deposits, Funding
Group Deposits
euro million
Deposits: y-o-y changes (%)
Breakdown Group deposits per type of customer
In H1 2014 the deposits balances of the Bank improved at
a faster pace when compared to the banking sector
average.
17.2%
19.1%
1.1%
15.6%
0.7%
16.3%
16.6%
1.0%
19.2%
66.0%
63.9%
63.2%
H1 2013
FY 2013
H1 2014
Private individuals
Public Sector
The Bank has a stable depositor base consisting of a large
number of private individuals. The deposits balances in H1
2014 have shown a y-o-y increase of about 21%.
Other
Businesses
25
Attica Bank in H1 2014 - Deposits, Funding
Core Deposits, 30.6.2014
741.3
720.0
702.0
euro million
Slight decrease in core deposits in the first half of 2014
(18 €m.) fully offset by a respective, higher increase in
time deposits (43 €m.)
H1 2013
FY 2013
H1 2014
* Core Deposits: sight and savings accounts
Breakdown of deposits per type, 30.6.2014
Current
accounts
10.0%
2,635.3
FY 2013
H1 2014
2,015.2
Savings
accounts
10.2%
H1 2013
Tim e
Deposits
79.0%
2,592.6
euro million
Other
0.9%
Time Deposits, 30.6.2014
Total cost
of deposits
(bps)1
415
371
271
1 Total Cost of Deposits: Excludes interbank fees, Pillar 2 bonds commissions, and Tier 2 interest
Data on a consolidated basis.
26
Attica Bank in H1 2014 – Deposits, Liquidity
ECB and ELA funding, % of total assets
The reliance of Greek banks on borrowing from the
ECB and the Bank of Greece (ELA) increased
significantly during 2012, peaking in June 2012 and
falling since then.
The Bank’s reliance on Eurosystem funding
(consisting only of ECB funding), as at 30.06.2014
stood at 2.48% of total assets against a sector
average of 11.34%.
Sector
Attica Bank
31/12/2009
10.10%
9.50%
30/6/2010
17.30%
14.50%
31/12/2010
19.00%
12.60%
30/6/2011
20.50%
14.80%
31/12/2011
23.90%
14.90%
30/6/2012
30.90%
27.60%
31/12/2012
27.50%
17.70%
31/3/2013
22.30%
11.30%
30/6/2013
19.60%
13.20%
31/12/2013
17.95%
3.69%
31/3/2014
15.02%
4.22%
30/6/2014
11.34%
2.48%
Source: Bank of Greece and Attica Bank
27
Attica Bank in H1 2014
Profit & Loss Account
28
Attica Bank in H1 2014 – Profit & Loss account, Operating Income
P & L Evolution H1 2014 (euro 000s)
150,000
100,000
34,674
50,000
4,560
0
-50,000
-100,000
-22,293 -45,745
-68,038
-150,000
-30,113
-46,416
-106,909
Operating income by source H1 2014 (euro 000s)
837
1,454
-153,325
-200,000
H1 2013
Profit before Provisions
FY 2013
H1 2014
7,837
9,833
20,151
14,749
46,297
H1 2013
-2,598
FY 2013
6,384
7,294
12,666
Provisions for credit risks
Profit before taxes
The Group had a pre-tax profit of 4.6 million euros in H1
2014, against a loss of 68 million euros for H1 2013.
In H1 2014 the Bank was able to increase income from all
sources (interest, fees and commissions, other).
Net interest incom e
Gain/ loss from securities
50,670
H1 2014
Net fee and com m ission incom e
Other incom e
Furthermore, along with the general trend observed in the
Greek banking system, Attica Bank was able to reduce the
cost of deposits significantly.
29
Attica Bank in H1 2014 - Interest Income
Group Net Interest Income H1 2014 (euro 000s)
Net Interest Margin (NIM) H1 2014
60,000
50,670
50,000
3.0%
2.51%
46,297
2.5%
40,000
2.0%
30,000
1.16%
1.5%
20,000
14,749
1.0%
0.75%
10,000
0.5%
0
H1 2013
FY 2013
H1 2014
0.0%
H1 2013
FY 2013
H1 2014
The Group Net Interest Income in H1 2014 increased by
243% on a year-on-year basis both as a result of increased
interest income and a decrease in the cost of deposits.
The NIM (Net Interest Income / Average Total Assets) was
2.51% in H1 2014.
30
Attica Bank in H1 2014 - Operating Expenses
Operating expenses breakdown H1 2014
4.1%
3.4%
4.3%
19.6%
19.8%
23.2%
28.1%
29.3%
48.2%
47.5%
H1 2013
FY 2013
Provisions for credit risks
General operating expenses
31.2%
41.4%
H1 2014
Cost / Income Ratio H1 2014
Salaries and personnel expenses
Depreciation
200%
182.8%
180%
164.8%
160%
In H1 2014 the cost/income ratio (excluding
provisions) stood at 55.4% (H1 2013: 182.8%)
Personnel expenses were down by 15% on a
year-on-year basis.
140%
120%
100%
80%
60%
55.4%
40%
20%
0%
H1 2013
FY 2013
H1 2014
31
Attica Bank in H1 2014
Capital
32
Shareholding and capital structure
Capital Structure
Shareholders
ETAA – TSMEDE
50.67%
Other shareholders
49.33%
• ETAA: The pension fund insuring professionals (civil
engineers, lawyers, doctors etc.). TSMEDE: Pension fund of
the construction sector (engineers and public works
contractors) with about 110,000 members and 21,000
pensioners. Part of ETAA since 2008.
• Free Float: About 20,000 shareholders. No single
shareholder holds more than 5% of common shares.
1. Share capital of 413.9 million euros and is
divided into:
•1.045.794.145 Common Shares, with a nominal
value of € 0.30 each, listed on the Athens Stock
Exchange.
•286,285,714 Preference shares, with a nominal
value of € 0.35 each, issued under the
Government Support Scheme in 2009 and held
by the Greek State.
2. Contingent convertible bond of current
outstanding balance of 95.6 million euros
converting into 318.6 million common shares of
the Bank:
•In full in 2018
•At the option of the bond holders twice a year
•Compulsorily in the case of a capital
contingency event
3. Lower Tier II bond of current outstanding
balance of 79.3 million euros maturing in 2015.
33
Attica Bank in H1 2014 – Capital position
Capital Adequacy ratios – H1 2014
• CET 1: 9.2%
• Tier I Capital ratio: 12.1%
• Capital Adequacy ratio: 12.6%
Risk Weighted Assets H1 2014
Capital H1 2014
3,500
208
117
156
120
2,500
2,000
1,500
2,956
2,935
3,081
1,000
500
euro millions
euro millions
3,000
208
120
500
450
400
350
300
250
200
150
100
50
0
0
H1 2013
Credit Risk
FY 2013
Market Risk
408
Equity
393
372
422
413 406
343
109
65
21
H1 2013
H1 2014
Operational Risk
452
Tier I
FY 2013
Tier II
16
H1 2014
Total Regulatory Capital
Data on a consolidated basis.
Data on capital for H1 2013 include the capital raised in July 2013.
34
Attica Bank
Strategic Aspiration
35
Attica Bank – Strategic aspiration
Vision
To establish Attica Bank as an autonomous and specialized
medium-sized, full-service, commercial bank with a stronger
presence in the market
Key areas of action
Focus and expand further in lending to businesses active in sectors
with growth potential (e.g. businesses operating in the construction sector)
Control NPLs and keep adequate provisions
Increase cross-selling to existing customers
Develop new, income-generating activities
Cost-containment
Attract new deposits
Improve profitability
36
Appendix
37
Key Financial Ratios
BALANCE SHEET STRUCTURE
Customer Deposits / Loans and Advances to
customers (before provisions)
GROUP
GROUP
GROUP
BANK
BANK
BANK
30/6/2014
31/12/2013
30/6/2013
30/6/2014
31/12/2013
30/6/2013
90.15%
88.64%
74.49%
90.55%
89.05%
74.84%
Customer Deposits / Total Assets
Loans and Advances to customers (after
provisions) / Total Assets
Total Equity / Total Assets
83.09%
81.70%
69.87%
83.35%
81.95%
70.11%
80.56%
81.40%
83.59%
80.45%
81.29%
83.49%
10.31%
10.10%
1.65%
10.17%
9.96%
1.54%
Total Equity / Customer Deposits
12.41%
12.37%
2.36%
12.20%
12.15%
2.19%
2.21%
-60.60%
-168.53%
1.92%
-62.39%
-178.46%
0.23%
-3.86%
-3.47%
0.19%
-3.89%
-3.46%
EFFICIENCY
Profit before taxes / Average Equity (RoAE)
Profit before taxes / Average Total Assets
(RoAA)
Total operating expenses less provisions /
Total Assets
2.12%
2.91%
2.49%
2.04%
2.80%
2.40%
Operating expenses less provisions / Total
operating income
55.37%
164.75%
182.76%
54.69%
172.57%
188.56%
NPL ratio (>90 days in arrears)
24.50%
26.61%
25.30%
24.50%
26.61%
25.30%
Provisions / Loans in arrears > 90 days
51.30%
43.50%
43.00%
51.30%
43.50%
43.00%
NPL ratio (>180 days in arrears)
22.70%
24.65%
22.70%
22.70%
24.65%
22.70%
Provisions / Loans in arrears > 180 days
55.50%
47.00%
47.80%
55.50%
47.00%
47.80%
Tier I Capital Ratio (Tier I)
12.10%
11.40%
10.40%
12.00%
11.30%
10.20%
Capital Adequacy Ratio
12.60%
12.00%
13.80%
12.40%
11.90%
13.60%
38
By receiving this document, the Recipient accepts and agrees to be bound by the following obligations
and limitations:
Above material has been prepared with Attica Bank contribution and cooperation by the Bank’s
financial advisors, 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.
Although this material is based upon information that Attica Bank considers reliable, Attica Bank or any
of its “connected persons” (as defined below) have not verified this information and do not represent
that this material is accurate, current, or complete and it should not be relied upon as such.
Accordingly, 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.
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.
ATTICA BANK S.A.
Contact Information:
Strategy Department
23 Omirou Str. 106 72, Athens, Greece
e-mail: [email protected]
Tel.: +30 210 3669201, fax: +30 210 3669410
39