CGD
INVESTOR’S
JOURNAL
01_2014
Caixa Geral de Depósitos
Investor Relations Office
Tel: (+351) 217 953 000
[email protected]
http://www.cgd.pt/Investor-Relations/
OUR PRINCIPLES
Business fully oriented
to Customer
Support SME, contributing
to Portuguese Economic activity
Promotion of Human Talent
and Teamwork
Highest Ethical Standards
Innovation
Social Responsibility
and Global Sustainability
CGD
INVESTOR’S
JOURNAL
A BANK IN Transformation to adjust
to a renewed economic paradigm.
During the course of 2013, Caixa Geral de
Depósitos Group faced renewed challenges to which it endeavoured to find the best
responses, in promptly and flexibly adapting
to a social and economic paradigm shift in
Portugal, whose signs of transformation
gradually increased in visibility.
“Renewal” and “preservation” are
probably two of the best nouns to characterise CGD’s attitude to this present context of
profound changes in the behaviour of economic agents and the workings of the economy.
Management of CGD’s activity, in all
segments, and its business model, increasingly geared to a corporate approach, have
been the object of a visible renewal process
with the aim of guaranteeing that the proposed new targets are also fully met.
The route taken to achieve such fulfilment is naturally part of a highly rigorous
framework, preserving what have always
been CGD’s major values and strategic guidelines, increasingly present in the recent
hurdles that the economy and the Portuguese have had to face.
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Caixa therefore continues to be the Bank for
all Portuguese, households and corporates,
with its proactive value offers to meet current needs and objectives, reflecting economic agents’ remarkable capacities to adjust
to an economic environment which, over
the last few years, has been very difficult
and demanding.
It is therefore in a context of economic and social revitalisation that Caixa continues to transform itself, reinventing and
positioning itself as the Bank that is helping
the economy (and the Portuguese) to steer
a new course.
The promotion of savings and support
for households, financing of those productive
sectors which make the largest contribution
to the sustained recovery of the economy,
boosting international business, always pursuant to a rigorous risk control system and
efficiency improvements, continued to be
fundamental strategic thrusts, in 2013, and
it is crucially important that they should be
maintained in this and future years.
01_2014
CGD
INVESTOR’S
JOURNAL
CGD has therefore maintained its undisputed, traditional dominance in terms of resource-taking while, at the same time, and
for the fifth consecutive year increasing its
market share of loans and advances to companies. In its endeavours to be the bank of
choice of the best Portuguese companies,
CGD achieved pole position in several important lines of credit, promoting the activities of the most dynamic SMEs with the
highest potential, in 2013.
We have not, however, come to the
end of the road which represents a decisive
challenge for CGD Group poised to achieve
its market shares of business with companies whose values are in conformity with
the natural ambition of a Bank which is the
country’s benchmark financial operator.
Similarly and equally important, is the
Group’s concentration trajectory in terms of
its fundamental activity, i.e. the banking business. This has resulted in significant disposals, such as its divestment in the healthcare segment and insurance activity (in
progress) in addition to other divestments
in different sectors of economic activity in
which CGD still had a relevant position.
01_2014
CGD’s Restructuring Plan, submitted by its
shareholder to DGComp and, in May 2013,
the Mission letter which was also submitted
by the Portuguese State, confirmed these
guidelines which have been part of CGD’s
strategy over the past few years.
As a historic benchmark, in the financial sector and the country, CGD plays a
role in the lives of Portuguese citizens, in its
continuous commitment to the construction
of a sustainably more prosperous country.
In the adoption of its management policies, CGD has always considered its future
investment, which is visible in its actions in
the domains of environmental management
and promotion of education and culture,
while, in parallel, internally encouraging the
civic intervention and community involvement of its employees who, together with
its customers, are one of the Group’s most
valuable assets.
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CGD
INVESTOR’S
JOURNAL
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01_2014
CGD
INVESTOR’S
JOURNAL
BUSINESS PERFORMANCE
64.0
DEPOSITS EVOLUTION (B€)
66.7
67.6
13.3
14.6
57.8
60.2
9.2
9.9
48.6
50.3
52.4
53.4
53.0
2009
2010
2011
2012
2013
11.6
international
Domestic market
Strong deposits growth, led by households.
IMPAIRMENT AND PROVISIONS (M€)
-10.8%
1,653
1,475
828
465
- 23.7%
1,125
308
826
2011(*)
1,010
2012
Provisions and Impairment
of other assets (net)
Credit Impairment (net)
818
2013
(*) 2011 values are not proforma
Rigorous and prudent risk management and provisioning.
01_2014
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CGD
INVESTOR’S
JOURNAL
CORPORATE AND SME
CORPORATE LOANS - MARKET SHARE
18.1%
17.3%
16.4% 16.4%
15.5%
14.8%
Dec-08 Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
The current economic crisis has been conditioning Portugal’s internal and external trade, reflecting a weaker credit demand by corporates. Nevertheless, CGD’s strategy for
the financing of this sector is being achieved, which is confirmed by the evolution of the
market share.
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01_2014
CGD
INVESTOR’S
JOURNAL
SME LINES OF CREDIT - MARKET SHARE
marKet sHare
loaNs to CompaNies
18%
marKet sHare
"pme lÍder"
marKet sHare
"pme CresCimeNto"
19%
marKet sHare
"Crédito iNVest QreN"
28%
46%
Cgd
other
To be the first bank of the best Portuguese SMEs is a crucial target for CGD.
01_2014
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CGD
INVESTOR’S
JOURNAL
FUNDING STRUCTURE
CGD’s Wholesale Redemptions Calendar (M€)
10,071
8,074 8,213
5,742
2,127
0
2014
6,147
8,463 8,610
7,027 7,074
3,030
2015
available eCB
Collateral pool
2016
2017
2018
annual Redemptions
2019
2020
2021
2022
ab2023
Cumulative Wholesale
Funding Redemptions
Available collateral pool covers upcoming maturities.
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01_2014
CGD
INVESTOR’S
JOURNAL
FUNDING STRUCTURE
BREAKDOWN
2011
2012
2013
8%
7%
12%
15%
78%
10%
80%
81%
Central banks + Credit Institutions resources (net)
10%
institutional (bonds+CP) + Portuguese state (CoCos)
retail
SOURCES
2012
2011
15%
4%
12%
Customer Deposits
11% 2%
4%
81%
84%
Bancassurance
2013
87%
other Customer resources
Deposits are the major funding contributor.
01_2014
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CGD
INVESTOR’S
JOURNAL
SUSTAINABILITY
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01_2014
CGD
INVESTOR’S
JOURNAL
CGD DEBT 750M€ / 5 YEAR
COVERED BONDS
PRIMARY MARKET
Breakdown by
TYPE OF INVESTORS
Issuer
Format
Announcement
Issue Size
Coupon
Reoffer Yield
Bookrunners
01_2014
Caixa Geral de Depósitos SA
5 Year Covered Bond
11-Jan-13
750 M €€
3.750%
3.835%
Caixa BI/Credit Suisse/UBS/
Commerzbank/SG
GEOGRAPHIC
BREAKDOWN
uk
19%
austria
19%
France
13%
switzerland
11%
Portugal
10%
spain
10%
scandinavia
7%
other
6%
Benelux
2%
italy
2%
andorra
1%
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CGD
INVESTOR’S
JOURNAL
VYING FOR FAST GROWING MARKETS
Large network connecting mature and fast growing markets.
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01_2014
CGD
INVESTOR’S
JOURNAL
01_2014
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CGD
INVESTOR’S
JOURNAL
PRIZES AND DISTINCTIONS
Sustainable Development Prize
2012/2013
Ranks #1 in the banking sector.
CDP 2013
CGD is the only Portuguese company in the
Iberian Top 6 for climate change and the
only Iberian financial institution recognized
for its contribution to a Low Carbon Economy, according to the CDP report “Iberia
125 Climate Change Report 2013”.
Prime status in OEKOM’s Corporate Rating
The Best Sustainable Banking
Group
CGD was evaluated by Oekom, a German
corporate sustainability rating agency, as
best in class in the financial sector at the
international level.
CGD Group was considered the “Most Sustainable Financial Group of Portugal” in
2012. This is the third consecutive distinction by the New Economy Magazine to CGD.
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01_2014
CGD
INVESTOR’S
JOURNAL
EXECUTIVE BOARD
José Agostinho Martins
de Matos
CEO
Nuno Maria Pinto de
Magalhães Fernandes
ThomaZ
Executive Vice-President
Ana Cristina de Sousa
Leal
Executive Board Member,
CRO
João Nuno de Oliveira
Jorge Palma
Executive Board Member,
CFO
Maria João Borges
Carioca Rodrigues
Executive Board Member
José Pedro Cabral dos
Santos
Executive Board Member
Jorge Telmo Maria
Freire Cardoso.
Executive Board Member
Caixa Geral de Depósitos
Avenida João XXI, 63
1000-300 Lisboa
Tel: (+351) 217 953 000
Fax:(+351) 217 905 050
[email protected]
www.cgd.pt
01_2014
17
HÁ UM BANCO
QUE ESTÁ A AJUDAR
O PAÍS A DAR A VOLTA.
A CAIXA.
COM CERTEZA.
There is a Bank
that is helping the country
to turn around.
CAIXA.
For sure.
CGD
INVESTOR’S
JOURNAL
BACK ISSUES
01_2013
02_2013
DISCLAIMER
This document is only provided for information purposes and does not constitute, nor must it be interpreted
as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by any of the
aforementioned companies in any jurisdiction where, or
to any person to whom, it is unlawful to make such an
offer or sale. Any decision to buy or invest in securities
in relation to a specific issue must be made solely and
exclusively on the basis of the information set out in the
pertinent prospectus filed by the company in relation to
such specific issue. Nobody who becomes aware of the
information contained in this report must regard it as
definitive, because it is subject to changes and modifications. The Company makes no representation or warranty, express or implied, as to the accuracy or completeness of the information containeherein.
This document contains or may contain forward
looking statements regarding intentions, expectations or
projections of Caixa Geral de Depósitos or of its management on the date thereof that refer to miscellaneous
aspects, including projections about the future earnings
of the business and involve significant elements of subjective judgment and analysis that may or may not be
correct. The statements contained herein are based on
our current projections, although the said earnings may
be substantially modified in the future by certain risks,
uncertainty and others factors relevant that may cause
the results or final decisions to differ from such intentions, projections or estimates. These factors include,
without limitation, (1) the market situation, macroeconomic factors, regulatory, political or government guidelines, (2) domestic and international stock market movements, exchange rates and interest rates, (3) competitive
pressures, (4) technological changes, (5) alterations in
01_2014
the financial situation, creditworthiness or solvency of
our customers, debtors or counterparts. These factors
could condition and result in actual events differing from
the information and intentions stated, projected or forecast in this document and other past or future documents. Caixa Geral de Depósitos does not undertake to
publicly revise the contents of this or any other document, either if the events are not exactly as described
herein, or if such events lead to changes in the stated
strategies and intentions. The contents of this statement
must be taken into account by any persons or entities
that may have to make decisions or prepare or disseminate opinions about securities issued by Caixa Geral de
Depósitos and, in particular, by the analysts who handle
this document and any recipient thereof should conduct
its own independent analysis of the Company and the
data contained or referred to herein. This document may
contain summarised information or information that has
not been audited, and its recipients are invited to consult
the documentation and public information filed by Caixa
Geral de Depósitos with stock market supervisory bodies, in particular, the prospectuses and periodical information filed with the Portuguese Securities Exchange
Commission (CMVM).
Distribution of this document in other jurisdictions may be prohibited, and recipients into whose possession this document comes shall be solely responsible for informing themselves about, and observing any
such restrictions. By accepting this document you agree
to be bound by the foregoing restrictions.
19
CGD
INVESTOR’S
JOURNAL
2014
GIR-GABINETE DE INVESTOR RELATIONS
CAIXA GERAL DE DEPóSITOS