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Important information
The information, statements and opinions contained in this document do not constitute a recommendation to
buy or sell financial instruments issued by the bank or in connection with the bank.
Certain sections in this document contain “forward-looking statements” regarding the bank’s future business
development and economic performance. There are a number of known and unknown risks and uncertainties
which may have an impact on the future business development or may influence future performance.
There are several factors which may influence operations, financial conditions, liquidity and banking sector
activity, and therefore future performance may be altered from present projections.
These factors include, but are not limited to: general market, macroeconomic, regulatory changes; b)
movements in local and international financial markets, currency exchange rates and interest rates; c)
competitive pressures; d) technological developments; e) changes in the financial position or credit
worthiness of our clients.
The information contained in this presentation must be read in conjunction with all other publicly available
documents and financial statements published by the Bank. The Bank will not be held responsible for any
transactions made on the basis of this presentation.
3
Agenda
what we’ve planned for today
I. Carpatica Overview II. The Immediate Future III. People and Service Excellence IV. Sales V. Financial Performance VI. Conclusions & Final Remarks
5
Established in 1999, head office – Sibiu (Transylvania)
Back to profit in 2012
National presence in all regions in Romania through 139 branches and
agencies
2004 listed on the Bucharest Stock Exchange
Full banking license
Regulated by the National Bank of Romania
~15,000 SME & Corporate and ~150,000 retail clients
Offers various banking products to SME, Corporate and Retail clients
SME / Corporate are the biggest contributor (>85%) to the loan portfolio
I.1 Carpatica Brief Profile
6
II. The Immediate Future
A glimpse at what is next to come
1. Capsule of BCC Current Status 2. Shareholders structure as at 30th of June 2013 3. Stock Price Evolution 4. Capsule of BCC Immediate Future 5. Our Clear Vision
Johan Gabriëls, Chief Executive Officer
7
Healthy balance sheet
Strong year-to-date 2013 performance
New management team; 10 of 17 senior positions: 1 – 6 months
Internal Restructuring Unit since June 2013
Seeking financial partners to increase CAR and help drive further
profit growth
Strong and scalable IT and operations backbone
Since September 2013 included in BSE indices BET and BET-BK
At 30/6/2013, BCC assets represent 1.02% of total banking system
Total loans 1.6 BN RON
1122 employees (minus 12% vs. YE 2012)
II.1 Capsule of BCC Current Status
8
II.2 Shareholders structure – 30th of June 2013
71%
29%
Shareholders by capital origin
Romanian capital Foreign capital
80%
20%
Shareholders by participation type
Individuals Legal Persons
Owner name Number of
shares Value (RON) Stake (%)
Carabulea Ilie 1,299,097,478 129,909,747.80 41.29%
Tanase Corneliu 352,948,364 35,294,836.40 11.22%
SC Atlassib SRL 143,042,518 14,304,251.80 4.55%
SC Safa SRL 278,117 27,811.70 0.01%
Olivo Gian Antonio 150,562,942 15,056,294.20 4.79%
Olivo Lucio 181,426,190 18,142,619.00 5.77%
Individuals 541,092,317 54,109,231.70 17.20%
Corporate 477,842,568 47,784,256.80 15.19%
TOTAL 3,146,290,494 314,629,049.40 100.00%
*according to Central Depository – 30/06/2013
9
Average volume 1.73m Shares outstanding 3.15bn Free float 1.49bn
P/E (TTM) 7.14 Market cap 200m RON EPS (TTM) 0.0089 RO
One year change +66%
II.3 Stock Price Evolution
10
Branch rationalization / incentive plan will further drive profits
Efficiency gains and headcount adjustment in HQ by Qtr1, 2014
Cross selling = another source of increasing profits
New FX and payment activities will add to profit growth
New customers / loan pipeline already at €40 million and growing
Seeking more strategic bank relationships
BCC has opportunity to pick up quality clients as many Romanian SME’s
being abandoned by Western European banks
Romanian banking industry ripe for major consolidation; presents
tremendous opportunity
II.4 Capsule of BCC Immediate Future
11
There is a significant potential supporting Romanians both in their
home country as abroad
We believe in “Service Excellence” as a differentiating factor. As a
small bank, decision taking will be fast
We will drive innovation through strategic partnership
BCC has now the team to create new markets and new services
To become “ The bank of opportunities ”
II.5 Our Clear Vision
12
III. People and Service Excellence Our differentiator
1. One of the Best Teams in the Market 2. Service Excellence as a Differentiator
Ena Badeanu, Chief People Officer (*)
(*) awaiting NBR approval
13
A New Executive Team with right mix of experience, exposure and knowledge
Gheorghe CISMARU
OPERATIONS
12 years with BCC
Johan GABRIELS
EXECUTIVE
6 months with BCC Former RBS / Capital
One
Ion DOBRICA
FINANCE
14 years with BCC
Ena BADEANU
PEOLPLE
6 months with BCC Former RBS / ABN-
Amro
Cosmin BUCUR
SALES
3 months with BCC Former RBS / ABN-
Amro
III.1 One of the Best Teams in the Market
14
Sebastian Bacioiu
Supported by a motivated, competent and highly potential team of directors
4 months with BCC, former Credit Agricole
Doina Dogaroiu
RISK
Irina Neacsu
2 months with BCC, former Erste Bank
Calin Parau
12 years with BCC
RESTRUCTURING
Adrian Fercu
<1 month with BCC, former RBS, ABN-Amro
NETWORK
<1 month with BCC, former RBS, ABN-Amro
SALES
TRANSFORMATION
14 years with BCC
Adrian Chira
4 months with BCC, former Bancpost, HVB
COMMUNICATION
18 months with BCC, former ING, Tiriac Bank
Gabriel Diamandopol
OPERATIONS
Lucian Nicoara
14 years with BCC
TREASURY
Sorin Ionascu
12 years with BCC
RETAIL
Non Credit
IT
Razvan Diaconeasa
6 months with BCC, former RBS, ABN-Amro
2 months with BCC, former RBS, ABN-Amro
Silvana Tataruca
INNOVATION
Adrian Hudulin
III.1 One of the Best Teams in the Market
(*) awaiting NBR approval
(*)
(*)
(*) (*)
15
III.2 Service Excellence as differentiator
A bank where the client is king and our employees are the first brand ambassadors
We are building a culture of excellence
Dedicated business unit of service excellence
Process redesign
Corporate credit flow (Qtr3, 2013)
Client on-boarding process (Qtr4, 2013)
We are creating a (new) corporate identity
Employees as brand ambassadors
Re-branding
Step change in the way we communicate
We are transforming the bank towards a client centric organisation
16
IV. Sales
A platform for future growth
Cosmin Bucur, Chief Commercial Officer (*)
(*) awaiting NBR approval
1. Overview 2. Strategic Focus
17
IV.1 Overview
Origination Capabilities
Local Network
Diversified Sectors
Self - funded
New senior team with strong
origination and execution capabilities
Proximity ensures
Efficient monitoring and risk control
Strong relationships with local
authorities and clients
Coverage for potential business
Balanced sector exposure
Limited exposure to cyclical sectors
A platform to identify the outperforming
sectors
Granular
Constant growth
Retail driven
2012 Banking Income by Region
2012 Banking Income by Sector
18
IV.2 Strategic Focus
Cross Sell
Clients & Prospects
People & Culture
Product Innovation
New Treasury Sales and Transaction Banking departments
Key growth drivers: FX platform (H2, 2013) and Commodities (2014)
Focus on International payments
Tailored Cash Management & Trade products for each client segment
Expand wallet on existing clients
Heightened focus on GDP driver (i.e. Agriculture, pharma and energy)
Increase penetration in Top 1000 large local and SME companies
From de-risking to risk management
Proactive identification of early warning signals
Comprehensive reporting, sales tools & client segmentation
Recruit, develop key talent and improve performance
Bring product and service excellence at best in class levels
Transparent performance management process
Focus on Internet Banking, Virtualization and Branch Automation
Deliver innovative solutions for a younger client segment
Creative Alternative Channels and marketing campaigns
19
V. Financial Performance
Towards Financial Strength
1. Healthy Balance Sheet Structure 2. Back to Profit 3. Strong year-to-date Performance
Ion Dobrica, Chief Finance Officer
20
BCC’s balance sheet compares favourably to the Romanian banking sector
BCC Banking system
Source: BCC/ NBR supervision reports
Loans (gross) to Deposits (%) (3)
Deposits to Total Assets (%)
Liabilities (1)
Liquid Assets = Bonds / Total Assets (%)
Loans to Total Assets (%) (2)
Assets (1)
Notes (1) Local GAAP. All data as of December 2012 (2) Loans to total assets = gross loans (pre-provisions) to total assets (pre-provisions) (3) Loans to deposits = gross loans (pre-provisions) to deposits
56
4035 36
29 29
6359 59 59 61
10
30
50
70
2008 2009 2010 2011 2012
6562
65
5348
55 56 56 56
20
40
60
80
2008 2009 2010 2011 2012
BCC Banking system
55 6051 49
59
122113 113 117 120
0
35
70
105
140
2008 2009 2010 2011 2012
56
16
V.1 Healthy Balance Sheet Structure
21
After 3 years of losses, BCC recorded a profit for 2012 Return on Assets (ROA) (%)
Profitability (1)
-1
-0.5
0
0.5
1
2011 2012
Notes (1) Based on local GAAP results. All data as of December 2012 (2) Cost to income ratio = operating expenses / banking income (3) Credit risk rate = exposure classified as doubtful or loss / total loans (pre-provisions) (4) NIM = net interest income / interest earning assets
Return on Equity (ROE) (%)
-15
-10
-5
0
5
10
2011 2012
Cost to Income Ratio (%) (2)
Cost (1)
40
60
80
100
2011 2012 Credit Risk Rate (%) (3)
15
25
35
45
55
2011 2012
Net Interest Margin (%) (4)
Revenues (1)
0
1
2
3
4
2011 2012
BCC Banking system
Source: BCC/ NBR supervision reports
V.2 Back to Profit
22
BCC’s net profit of 16.1 M RON, up 75% on H1, 2012
Balance sheet
Notes (1) All numbers except ROE are based on IFRS financial statements
43.7 42.0 30.5
M RON 2012 2013 H1 %
Total Assets 4726 3608 (24)
Loans (net) 1183 1300 +10
Financial Assets 2652 1530 (42)
Total Liabilities 4362 3232 (26)
Deposits 2514 2620 +4
Equity 364 383 +5
Performance
M RON 2012 H1 2013 H1 %
Total Banking Income 96 118 +24
Total Cost (77) (82) +7
Pre-provision profit 19 36 +88
Provisions (7) (26) ++
Profit before Tax 12 10 (16)
Net Profit 9 16 +75
Credit Risk Rate (%)
2012 H1 2013 H1 2013
53.3 72.5 60.7 Deposits / Total Assets (net) (%)
59.1 61.7 114 Loans (gross) to Deposits (%)
BCC Banking system
2.1 2.4 Net Interest Margin (%)
2012 H1 2013 H1 2013
84 69 Cost to Income Ratio (%)
6.0 12.0 6.0 ROE (%)
V.3 Strong year-to-date Performance
10.7 10.6 14.7 Capital Adequacy Ratio (%)
23
VI. Conclusions and Final Remarks
1. Key Investment Highlights 2. Potential Upside
Johan Gabriëls, Chief Executive Officer
24
New, highly experienced and motivated team with excellent reputation
Access to skilled staff within BCC
One of the best teams in the market 1
International network and projects The bank of opportunities Cross-sell potential Deleveraging by non-Romanian banks
Untapped opportunities 2
Full Romanian banking license Opportunity to passport to all EU countries
Regulatory 3
Operations and IT proven to be flexible Speed to market delivery
Flexible business model 4
Towards Sustainable financial strength
Healthy balance sheet structure
Self-funded business
Service excellence as differentiating factor
VI.1 Key Investment Highlights
25
Optimise Loan Expansion / Risk Appetite
Current loan to deposit ratio ~ 60% … target 80% - 90% … major upside for
additional lending potential based on current deposit base
Many foreign owned Romanian banks reducing lending activities =
opportunities for Carpatica to pick up SME and large local customers
Optimise Client and Product Strategies
Carpatica developing / implementing new products / services
Partnership with brokers outside Romania
Remittances solutions
Treasury sales
Online trading
New online payment solutions
Commodities
Optimise Operating Efficiencies
VI.2 Potential Upside