Poľnobanka / Unibanka on a Track to Reach UCI Group

Download Report

Transcript Poľnobanka / Unibanka on a Track to Reach UCI Group

E - Leader
International Leadership
Conference
June 11 – 15, 2006
Bratislava
Anna Pilkova
UniCredito Italiano Group
INDEX
Introduction
Slovak economy and banking sector
Macroeconomic context and future expectations
History of the banking sector in brief and main business trends
in the banking sector today
UniBanka and it´s strategic changes over 15 years of existence
2
The main features about SLOVAK REPUBLIC
1993 – establisth of Slovak Republic
• inhabitants: 5 million
• neighbouring countries:
Czech Republic, Poland,
Ukraine, Hungary, Austria
2004 - joining European Union
2009 - a part of the European
Monetary Union
3
INDEX
Introduction
Slovak economy and banking sector
Macroeconomic context and future expectations
History of the banking sector in brief and main business trends
in the banking sector today
UniBanka and it´s strategic changes over 15 years of existence
4
Sound macroeconomic conditions have been reflected in major
sovereign rating improvements
5
Moody's
S&P
Fitch
Poland
A2/Stable
BBB+/Stable
BBB+/Positive
Hungary
A1/Negative
A-/Negative
BBB+/Stable
Czech Republic
A1/Positive
A-/Positive
A/Stable
Slovakia
A2/Positive
A/Stable
A/Stable
Slovenia
Aa3/Positive
AA-/Stable
AA-/Positive
Estonia
A1/Positive
A/Positive
A/Positive
Latvia
A2/Positive
A-/Stable
A-/Stable
Lithuania
A3/Positive
A/Positive
A-/Positive
Bulgaria
Baa3/Stable
BBB/Positive
BBB/Stable
Romania
Ba1/Positive
BBB-/Stable
BBB-/Stable
Croatia
Baa3/Stable
BBB/Stable
BBB-/Stable
Turkey
Ba3/Stable
BB-/Positive
BB-/Positive
The best rating
among the V4
countries
given by 2 out
of 3 main
rating
agencies
Improvement in rating in the last 2 years
Deterioration in rating in the last 2 years
Source: Rating agencies, UniBanka, UniCredit NE Division
Performance of the economy:
Macroeconomic scenario for 2004-2008
Indicator
Key indicators
for Euro
adoption
2004
2005
2006F 2007F 2008F
Real growth in GDP (%)
5.5
6.0
6.3
6.3
5.8
Growth in investments (%)
5.0
13.8
13.9
5.8
3.8
Growth in consumption of households (%)
3.8
7.2
5.1
3.6
4.4
Growth in government´s consumption (%)
2.0
0.5
1.8
1.5
1.7
Inflation - Dec (%)
5.9
3.7
3.5
2.1
2.0
Unemployment rate (%)
15.6
13.1
12.2
12.1
12.0
Average exchange rate €/SKK
40.0
38.6
37.0
36.1
36.0
4.8
3.0
3.6
3.8
3.8
1M BRIBOR (average, %)
Current account (%, GDP)
-3.4
-8.6
-5.5
-3.6
-2.8
Public deficit (%, GDP)
-3.0
-2.9
-2.7
-3.0
-2.7
Public debt (%, GDP)
41.6
34.5
38.4
37.8
37.5
2.3
4.0
5.7
3.5
3.3
Direct foreign investments
6
Source: Statistical Office of SR, NBS, Office of Social Affairs and Family, UniBanka
Growth
should
remain
robust...
... mainly
driven by
investment
activity...
... and gradual
dissinflation.
Public deficit
could be
higher after
elections
Maastricht criteria: Inflation will be the hardest nut to crack
Inflation vs. Maastricht criteria
10,0%
f orecast
9,0%
Slovakia able to fulfill
Maastricht criteria despite
difficulties
8,0%
7,0%
6,0%
5,0%
4,0%
3,0%
2,0%
1,0%
www.hotelset.sk
0,0%
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
1.
2.
3.
•Maastricht
criteria
estimate
UniBanka
based on
IMF
forecast
2004
2005
2006
NBS targ et
HICP (y/y, 12M avg .)
2007
2008
Maastricht*
Public finance deficit vs. Maastricht criteria
0,0%
-1,0%
2002
2003
2004
2005
2006F
2007F
2008F
-2,0%
-3,0%
-3,0%
-4,0%
-2,9%
-2,7%
-3,0%
-2,7%
-3,7%
-6,0%
-8,0%
7
-9,0%
-7,7%
Slovakia fulfills
Maastricht criteria
 Based on 2006-2008 budget proposal, Slovakia should by
able to fulfill both public finance criteria (deicit andd debt),
even if the pension reform costs will be included
 Exchange rate stability – the range is set to 32,687 – 44,223
SKK/€ - no problems expected
-5,0%
-7,0%
 Slovakia should fulfill inflation criteria in H2 2007, however
risk still comes from energy (oil) prices development
Maastricht criteria – 3%
forecast
 Interest rate stability - Slovakia safely fulfill Maastricht criteria
– no problems expected also in upcoming years (Maastricht
criteria at the level of 5.61% p.a. vs. Slovakia long-term interest
rate at the level of 4.01% p.a. in March 2006)
INDEX
Introduction
Slovak economy and banking sector
Macroeconomic context and future expectations
History of the banking sector in brief and main business trends
in the banking sector today
UniBanka and it´s strategic changes over 15 years of existence
8
Restructuring of a quarter of loans portfolio and subsequent privatisation
lead to the present good results
1993- 2006: Evolution of the Slovak banking sector in brief
1993
1999
1997
2002
2006
Restructuring
starts: 25
banks, 75% of
capital in
local hands
Slovak
republic
established
NPL ratio:
36%*
9
Note: *at the end of 1998
Source: NBS, UniBanka
29 banks
present, 61%
of capital in
local (state)
hands
Restructuring
finalised: 20
banks, 14% of
capital in
local hands
NPL ratio:
31%
NPL ratio:
11%
23 banks
present: 4% of
capital in
local hands,
ROE at16%,
no bank in red
numbers
NPL ratio:
5%
Intermediation of the financial sector – a huge potential for future
growth in the whole region
Total Loans over GDP
2002*
2005
90%
120%
Eurozone (2005) = 115.4
80%
70%
60%
50%
39%
40%
30%
20%
10%
0%
PL
HU
CZ
SK
Source: UniCredit New Europe Research Network and UniCredit Research and
Strategy
10
HR
RM
BG
TK
Slovak banking sector with a
position at the average of the
region
Backed by financial assets, the indebtedness of households does not
seem so low anymore
Data as of 2004
Household Debt over Fin. Wealth
Estonia
83%
Croatia
46%
Hungary
36%
Per capita debt
Household Debt over GDP
50%
Eurozone
32%
Croatia
24%
Estonia
Eurozone
Croatia
1,603
1,587
31%
Hungary
20%
Estonia
Latvia
29%(*)
Latvia
19%
Czech R.
Bulgaria
28%
Eurozone
27%
Poland
1,939
Hungary
Romania
Czech Rep.
13,286
1,217
14%
Latvia
852
13%
Poland
740
Poland
24%
Bulgaria
12%
Slovakia
663
NE(10)
23%
NE(10)
12%
NE(10)
540
Slovakia
22%
Slovakia
Bulgaria
300
Czech R.
21%
Turkey
Turkey
210
Romania
143
Turkey
11
13%
Romania
10%
6%
5%
Note: (*) As of end of 2003.
Source: UCI New Europe Research Network Database, based on National Central Banks and Eurostat
Slovak banking sector in words
 23 banks are present on the market, mainly with general
licenses
 Capital ownership structure dominated by Austria (36%)

followed by Luxembourg (32%) and Czech republic (9%). Non
EU countries own 4% of local banking capital
Management Boards of TOP10 banks are dominated by foreign
members (54%). Share of women remains low, at 8%
 Market development was characteristic by lending boom on the

12
retail side while cash-flow improvement and strong investment
activity on the corporate side
In terms of P&L impacts, the increased competition and
monetary relaxing shifted the P&L structure towards a
decreased role of interest income
Inspite of an increasing competition and 98% of the banking sector assets
being in foreign hands – the sector remains highly concentrated
2005 Ranking of the Slovak banking sector (SKK ths.)**
TOP3 holding above 50% of
the market
TOP 3 holding above 40% of
the market
13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Balance sheet
value
VÚB
227 403 847
SLSP
225 560 305
ČSOB
185 391 306
Tatrabanka
184 118 202
ING bank
105 188 876
HVB Slovakia
76 239 458
UniBanka
53 623 937
Dexia banka
45 787 324
PSS
45 698 419
OTP banka
39 332 747
Istrobanka
35 261 591
Ľudová banka
30 992 534
Citibank
29 094 792
Poštová banka
23 369 574
Calyon
16 586 327
VUB Wüstenrot
9 033 236
Commerzbank
6 466 336
Komerční banka
6 295 771
ČSOBS
6 070 486
Privat banka
5 466 999
Due from
clients
83 380 430
90 144 890
30 093 472
78 990 399
15 058 388
36 885 045
26 389 178
24 896 455
34 753 061
28 447 994
20 435 294
18 471 933
13 343 551
7 099 371
6 929 123
5 320 560
2 440 139
3 083 698
2 094 284
1 199 672
Note: Ranking based on balance sheet values; Source: UniBanka
Due to
clients
162 302 493
177 842 851
59 263 645
130 950 069
38 235 703
28 569 417
41 011 385
31 256 095
36 675 746
22 415 342
19 635 740
23 807 562
20 280 777
20 049 002
3 955 187
7 822 010
690 609
297 430
5 247 580
4 142 571
Net profit
3 780 755
3 313 679
374 773
2 380 135
407 736
730 289
381 730
233 991
653 858
190 839
189 242
152 383
308 487
226 903
15 720
73 031
3 736
2 019
1 191
42 719
Major foreign
owner
Intesa BCI
Erste bank
KBC
Reiffesien
ING
UniCredit
UniCredit
Dexia
Bausparkassen
OTP
Bawag
Volksbank
Citigroup
Calyon
Wüstenrot
Commerzbank
Societe Generale
KBC
Meinl Bank
Top 3
players
holding
70% of the
market
profit
UCI + HVB + BACA BY FAR NO. 1 IN CE
Net Profit
(€ mln)(2)
Dec. 2004 (1)
Revenues
(€ mln)
UniCredit + HVB
1,163
(100% of all banks,
including Yapi)
OTP(4)
557
418
SocGen
408
KBC
264
Intesa
242
Citigroup
1,715
176
83.7
16.9 18.0(3)
1,420
1,126
1,110
826(5)
n.a.
19.7
786
875(3)
1,245
722
34.8
1,017
24.7
16.4
14.8
Source: UCI-FBD Economic Research; numbers calculated using average exchange rate except for Unicredit
14
2,864
33.3
1,660
319
RZB
N. of branches
4,982
576(3)
Erste
Assets
(€ bln)
1. 100% of total assets and profit after tax for controlled Companies (stake > 50%) and share owned for non controlled
companies; 100% of branches and employees; for details please refer to the methodological notes. 2. After tax, before
minority interest. 3. Including proforma recently acquired Novabanka; 4. Including OTP’s subsidiaries. 5.Data on total
revenues refer to contribution to Intesa’s consolidated results
814
498
237
INDEX
Introduction
Slovak economy and banking sector
Macroeconomic context and future expectations
History of the banking sector in brief and main business trends
in the banking sector today
UniBanka and it´s strategic changes over 15 years of existence
15
UniBanka is a member of UniCredit Group one of the best
banking groups in Europe
Italy
Germany
Austria
CEE
Poland
Hungary
Czech Republic
Slovakia
Bulgaria
Romania
Croatia
Bosnia Herzegovina
Serbia Montenegro
Slovenia
Turkey
Ukraine
Lithuania
Latvia
Estonia
Russia
16
Bank Profile and Strategy Evolution

Established
1990 as a first private bank in Slovakia

Medium-sized bank
in comparison with banking sector in
Slovakia

Commercial bank
offers full range of retail (including SME)
corporate and investment banking
products and services

Main shareholders
UniCredito Italiano S.p.A., Milan
EBRD, London
The Ministry of Agriculture
Others

17
Domestic network
77,21%
19,90%
1,09%
1,8%
10 branches and 56 sub-branches
connected
on-line reach about 80% of population
Results and branch network of UniBanka
Total Assets
Deposits
Loans
Total revenues
Net Profit
Registered capital
53,725,903
42,832,284
26,389,178
1,909,371
365,228
Branches
Employees
Deposits / Loans
Capital adequacy
66
998
1.62
12.21 %
2,377,062
In thous. SKK, IAS consolidated data
as of 31st December 2005
10 Regional branches
56 Local branches
UniBanka, a. s.:
• has highly developed branch network
• holds strong corporate banking position including property
development financing
• reinforces orientation on services in foreign trade
• offers balanced portfolio of competitive products and
18
services for corporate clients, managers and employees
Bank Profile and Strategy Evolution...
Bank Life Cycle...
 1990 –
START – UP
ENTERPRENEURIAL
 1991 - 1996
 1997 – 2000
GROWTH
STAGNATION-DECLINE
KEY CHALENGES
KEY SEGMENTS
IDENTIFICATION
HIGHT GROWTH BUT NOT IN
HARMONISED WITH OTHER
PROCESSES PART.RISKS
FRAGMENTED
SHAREHOLDER´S
STRUCTURE
SURVIVAL SHAKEOUT
 2001 –
STRATEGIC OWERSHIP
TURNAROUND
NEW STRATEGIC
REENGINEERING
MGMT PROCESS
NEW CULTURE
19
 2006
MERGER
GROWTH STRATEGY
THROUH AQUISITION
Bank Profile and Strategy Evolution
PERIOD/STRATEGIC EVENTS
26.6.1990 – Establishment under
the name Slovenská
poľnohospodárska banka
-Idea of bank establishment
came from the man who was the
first CEO
l.l.1991 – Starting of Banking
Activities
1992– Privatisation process has
started
1993-Slovak republic was
established and EBRD bought
stake in the Bank
1993-1994 – Important
macroeconomic change
occurred(decrease of GDP,
significant growth of MM prices,
slow down in agrisector
1994 – changing the name –
Polnobanka
20
MAIN SHAREHOLDERS
STRATEGIC FOCUS
Slovak insurance company - SP
(31,91%)
Ministry of Agric. - MP(7.2%)
Agrobanka Praha-AG (6,7%)
Other (54,19%)
. Start-up business focusing on
agribusiness sector
. Dynamic growth mainly in loan
side while funding was done
through financial institutions
. Personal from former State Bank
Czechoslovakia and Non banking
industries
SP – (31,91%)
EBRD – (20,0%)
MP – (8,65%)
AG – (3,75%)
Other –(35,69%)
.Enlargment of business
segments towards newly set up
start-ups, mainly shops
. Starting cooperation with EBRD
through co-financing mainly food
processing companies
. Hiring new staffs with „western
type of education“and starting
trainings in this directions
Bank Profile and Strategy Evolution
PERIOD/STRATEGIC EVENT
1995 – new strategy
formation and
implementation has started
1996 – two Italian financial
groups – Unicredito,S.p.A
and Finest,S.p.A. joined the
bank
21
MAIN SHAREHOLDERS
SP - (31,91%)
EBRD – (20%)
UcI(7,5%)
Finest – (7,5%)
MP – (8,32%)
AG – (1,78%)
Other –(22,99%)
STRATEGIC FOCUS
. From agribusiness to
universal banking with
providing of full range of
services and products of
commercial and investment
banking through concepts
of relationship banking and
improvement of credit
granting process.
The crucial segments were:
Corporate,SME´s and
Citizens. Within corporate
special attention was done
to Italian enterpreneurs
Bank Profile and Strategy Evolution
PERIOD/STRATEGIC EVENTS
1997 – the first CEO left the
bank
- the first signs of bank
stagnation appeared
1998 – corporate governance
change – instead of external
Board of Director System
Internal one was introduced.
BoD had two Slovak members
and one British guy – EBRD
repres.
22
MAIN SHAREHOLDERS
SP - (31,91%)
EBRD – (20%)
UcI(7,5%)
Finest – (7,5%)
MP – (8,32%)
AG – (1,78%)
Other –(22,99%)
STRATEGIC FOCUS
. Continuing implementation of
strategy defined in 1995 through
changing of organizational
structure as follows:a/ separating
business from risk mgmt and
Credit risk was a major priority,
b/ set up two business units
focusing on corporate (incl. SME)
and citizens.
c/ strategic customer services and
products were design – focusing
mainly on tailored made system
Bank Profile and Strategy Evolution
PERIOD/STRATEGIC EVENTS
1999 – a few failures of
commercial bank occured –
Priemyselná banka, Agrobanka,
Slovensko, Banka Haná –
negative impact on Poľnobanka –
a few runs on liquidity
MAIN SHAREHOLDERS
SP
(31,91%)
EBRD (20%)
UcI
(7,5%)
Finest (7,5%)
MP
(8,32%)
AG
(1,78%)
Other (22,99%)
STRATEGIC FOCUS
2000 – May , SP decided to
increase capital and
subsequently sold 51% of shares
to UniCredito Italiano.....
UCI
(72,39%)
EBRD (19,9%)
MP
(1,59%)
AG
(0,34%)
Others (4,35%)
. Turnoround
. New growth strategy formation
and implementation
2002 – April- changing of the
name – UniBanka
23
. To find strategic shareholder
and capital.
. Bad loan portfólio solving.
. Strict credit granting process –
continuing.
Bank Profile and Strategy Evolution
PERIOD/STRATEGIC EVENTS
MAIN SHAREHOLDERS
STRATEGIC FOCUS
UCI
(77,21%)
EBRD (19,90%)
MAG (1,09%)
Others (1,8%)
. Focus on improving position in
Retail and SME´s sector
. To be the 4th largest bank in
Slovakia – challenging the 3rd
one
. To be 2nd largest corporate bank
2005 – June – Aquisition fo HVB
Bank by UniCredito Italiano Milan
2006 – Merger of local HVB bank
with UniBanka
24
After merger with HVB group became UniCredit Group leader on
markets of CEE countries
ITALY:
N. 2 with 10% market share1
Customer Loans: 122 bn Euro
Customer Deposits: 72 bn Euro
Branches: 3,137
Employees: 40 000
Customers: 6.3 mn
GERMANY:
N. 2 with 5% market share1
Customer loans: 153 bn Euro
Customer Deposits: 61 bn Euro
Branches: 681
Employees: 26,000
Customers: 4,0 mn
AUSTRIA:
N. 1 with 18% market share1
Customer Loans: 51 bn Euro
Customer Deposits: 35 bn Euro
Branches: 405
Employees: 12,000
Clustomers: 1.8 mn
CENTRAL AND EASTERN EUROPE:
N. 1 bank2
Countries of presence: 163
Customer Loans: 41 bn Euro
Customer Deposits: 47 bn Euro
Employees: 58,0004
Customers: 16.4 mn
Source: Company data of year end 2004, except Hebros Bank as of 2003
25
1. Ranking measured in terms of total assets. For market share calculations UniCredit and HVB may apply different definitions as far as the
underlying data is concerned.
2. Ranking measured in terms of total assets. Including Hebros Bank, Eksimbanka, IMB and Yapi. Banca Ion Tiriac not included. For Yapi included
50% of loans and deposits and 100% od branches and customers. For customer customer loans, customer deposits, branches, employees and
customers data not included for Ukraine and Baltic Countries.
3. Included Poland, Hungary, Czech Republic, Slovakia, Bulgaria, Romania, Croatia, Bosna Herzegovina, Serbia Montenegro, Slovenia, Turkey,
Ukraine, Lithuania, Latvia, Estonia and Russia. Excluding representative offices.
4. Including 100% Yapi, excluding Hebros Bank, Eksimbanka, IMB, Ukraine and Baltic Countries.
KEY RESULTS AS TO 31.12.2005 - solid, profitable and growing company
Market capitalisation
Group:1
In terms of market cap: 5th largest European
financial group and 2nd in Euro zone
60 billion EUR
Loans and receivables
Group: 426.6 billion EUR
Direct Deposits
Group: 462.2 billion EUR
Assets
Group: 787 billion EUR
26
1. Group (everywhere): pro forma – considering HVB as part if the UniCredit Group for all the year
2. Without considering the integration cost
Total revenues
Group: 20,791 mil EUR
Net Income2
Group: 3,308 mil EUR
Empoyees
Group: 132,914
Branches
Group: 7,184
NEW GROUP BUILT TO LEVERAGE OPPORTUNITIES
IN ALL CUSTOMER SEGMENTS AND MARKETS
Retail
Division
Corporate
and SME Div.
Private Banking
and
AM Division
Multinationals/
Investment
Banking
Division
Central and
Eastern
Europe
Division
BANKING GROUP WITH HIGH INTERNATIONAL RATING:
27
FITCH RATINGS
Moody‘s Investor Service
Standard and Poor‘s
ST debt
F1
P-1
A-1
T/LT debt
A+
A1
A+
Outlook
Stable
Stable
Negative
Commercial
Real Estate