“la Caixa” Group 2009 Results Presentation Barcelona, 5 February … · 2010-12-23 · Erste...

“la Caixa” Group2009 Results Presentation Barcelona, 5 February 2010

2009 Results Presentation

Disclaimer

05/02/2010

All data, estimates, valuations, forecasts and other data contained in this presentation are offered for informationpurposes only.

This document has not been filed with the Spanish National Stock Market Commission (CNMV) for approval. In anycase, it is subject to the Spanish legislation in force on the date of its creation and, in particular, it is not directed towardsany person or legal entity located in any other jurisdiction, meaning that it may or may not conform to the compulsoryregulations or legal requirements that apply in such foreign jurisdictions.

This presentation is not intended to take the form of financial advice, nor is it meant to offer any kind of financial serviceor product. “la Caixa” does not accept any liability in the event that some part of this presentation is used as the basisfor an investment decision. In particular, the reader is expressly advised that the following information must not be takenas a guarantee of future results.

In so far as it relates to investments, this financial information from the “la Caixa” Group for 2009 has been preparedmainly on the basis of estimates.


The view ahead a year agoThe recessionary cycle

Recession?Depression?

Global financial

crisis

Confidence/ Expectations

(81/100)

Investment(-15%) Sales

(-4%)

Prices(-0.3%)

Profits(-30%)

Unemployment(+1.1 million)

Consumption(-5%)

05/02/2010

05/02/20102009 Results Presentation

The business environment in 2009Deep economic recession

GDP(year-on-year % change)

Unemployment(% of labour force)

Inflation(%)

-2.6

-4.1

-4.0%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

I II III IV I II III IV I II III

USAEuro ZoneSpain

18.8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

I II III IV I II III IV I II III IV

10.0%

10.0%

USAEuro ZoneSpain

2007 2008 2009

0.8%

0.9%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

J M M J S N J M M J S N J M M J S N

2.8%

USAEuro ZoneSpain

2007 2008 2009 2007 2008 2009


Business environment in 2009Economic policy response

Fiscal deficit(% of GDP)

Central bank balance sheets(01/08 base 100)

0.5%1.0%

0%

1%

2%

3%

4%

5%

6%

7%

Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10

USA

Euro ZoneUnited Kingdom

Central bank monetary policy rates(%)

5.9%

2.0%

4.1%

12.5%

6.4%

11.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

USA Euro Zone Spain

2009 (forecast)

2008

242.4

0

50

100

150

200

250

300

Jan-08 Jul-08 Jan-09 Jul-09 Jan-10

251.6

139.7

USA

Euro ZoneUnited Kingdom

0.3%


Business environment in 2009Gradual normalisation of markets

Interbank– public borrowing differential (three months, in basis points)

Stock markets(01/07/07 base 100)

AAA bond risk premium(in basis points)

40

50

60

70

80

90

100

110

120


Eurostoxx50Ibex35

0

50

100

150

200

250

300

350


50

100

150

200

250

300

350

400

450

500

Feb-07 Jul-07 Dec-07 May-08 Oct-08 Mar-09 Aug-09 Jan-10

USAEuro Zone

Dow Jones


Balance sheet reference rates New deposits ratesLoan business

-5%

0%

5%

10%

15%

20%

Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09

ViviendaConsumer goodsHousing

Businesses

Stability of net operating income

0%

1%

2%

3%

4%

5%

6%


EuriborRate paid

Spanish financial sectorBusiness and margins

Shown as %

0%

1%

2%

3%

4%

5%

6%


DepositsLoans


Spanish financial sectorLiquidity and solvency

ECB call(millions of euros)

Defaults(%)

Maturing and new issues 2009(millions of euros)

87,230

48,000

75,380

Maturing New issues

Withoutsecurity

Withsecurity

123,380 BanksSavings banks

0%

1%

2%

3%

4%

5%

6%

Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09

Banks

Savings banksTotal system

-10000

0

10000

20000

30000

40000

50000

Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09


“la Caixa”


“la Caixa” 2009Business

millions of euros

Gross loan investment Total customer fundsBusiness volume

2008 2009

+0.4%

2008 2009

414,123 415,825 176,423 178,026

+0.9%

2008 2009

237,700 237,799=

0.0%

05/02/2010


“la Caixa” 2009Comparative growth

November 2009; “la Caixa” at December 2009. Year-on-year change as %

05/02/2010

Resources on balance sheet (Deposits and issues)

Off-balance –sheet funds(Investment funds, pensions and insurance)Total loans

(excl. “la Caixa”)

Banks

Savings banks

Banks

Savings banks

Banks

Savings banks-1.3%

-3.1%

0.9%

3.7%

-2.5%

-1.8%

1.2%

5.5%

13.6%“la Caixa” “la Caixa” “la Caixa”

(excl. “la Caixa”) (excl. “la Caixa”)


“la Caixa” 2009Results

Net operating income

Millions of euros

yRecurring income Extraordinaryincome

Income attributedto the Group

3,2233,622

2008 2009

2,0521,710

2008 2009

(16.7%)

+12.3%

Income

Writedowns

Allowance coverage for business risk

Total

260

(260)

(250)

(250)

249

(249)

(200)

(200)

20092008

1,802 1,510

2008 2009

(16.2%)

9,789

17,834

25,146 22,262 21,208

2005 2006 2007 2008 2009


“la Caixa” 2009Efficiency, profitability and liquidity

Recurring profitability Liquidity

05/02/2010

2.3ROE 11.3%

ROA 0.8%

RORWA 1.6%

8% of total

assets

46.1%

45.2%

42.9%

2007 2008 2009

Interbank – public borrowing differential(Euro Zone, in basis points)

10.166 ECBFacility

Balancesheet11.042

0

50

100

150

200

250

300

350

400

Efficiency


“la Caixa” 2009Non-performing loans and coverage

Allowance coverage (including mortgage cover) Non-performing loans ratio

05/02/2010

Mortgage guarantee 4,114 4,114 100%

Other guarantees 2,207 3,914 177%

(guarantee value)

(insolvency fund)

Doubtful Total Coverage % Cov.

Total 6,321 8,028 127%

Coverage ratio 62%

Millions of euros

LTV doubtful: 60%LTV total: 49%

0%

1%

2%

3%

4%

5%

6%

J M M J S N J M M J S N J M M J S N

4.7% Banks

“la Caixa”

5.3% Savingsbanks

December3.42%

2007 2008 2009

November


“la Caixa” 2009Solvency

05/02/2010

December 2009

Tier 1 BIS RatioCore Capital Ratio

8.7% 8.6% 8.6%8.0% 7.7% 7.7%

6.8%

10.4%10.1%9.4% 9.1% 9.1% 8.8% 8.7%

14.2%13.6%

11.3%11.0%10.8%10.6%9.7%

A B C D E F A B C D E F A B C D E F


Criteria CaixaCorp

IPO 31/12/2009


Increasing weight in financial sectorImplementation of strategy

Weighting of financial sector in net investment Weighting of financial sector in asset value

05/02/2010

% and millions of euros. December 2009

17%

83%

32%

68%

Services

Financial

Services

Financial

77%

23%

1,965 *Services

6,535Financial

8,500 *

Gas Natural

Abertis

GF Inbursa

Erste Group Bank

Adeslas

SegurCaixa

BEA

BPI

Investments made and undertaken since listing

* Includes disinvestments in Telefónica and Agbar


Criteria

Main investments in 2009Evolution of portfolio and shares

05/02/2010

70

80

90

100

110

120

130

140

Dec-08 May-09 Sep-09 Jan-10

Criteria Caixa Corp

Ibex 35

NAVMarket valueUnrealised gainsDividend profitabilityShare price (euros)NAV per share* (euros)

31/12/2009

20,1183,9456.4% 3.305.21

Dec 08 – Jan 10

Ibex 35

CriteriaNAV

19.1 %18.1 %16.1%

Agreements in 2009

Bank of East Asia

Adeslas

Disinvestment AGBAR

Gas Natural

Erste Group Bank

331

1,178

(647)**

1,313

652

Listed investments

* Preliminary** Reduction of holding to 25%

%

Base 100 on 01/01/2009

Millions of euros

NAV


Gas NaturalLeading energy group

March 2009Share capital increaseand takeover merger

July 2008Agreement to acquire 45.3% of Unión Fenosa from ACS

05/02/2010

Electricity

Gas

Generation3rd

Distribution3rd

Sales2nd

Wholesale mkt1st

Distribution1st

Sales1st

• Gas Natural share capital increase: 3,502 million euros

Criteria investment: 1,313 million euros

• Eventual acquisition up to 95.2% of capital


AdeslasLeading insurer

05/02/2010

Groups. December 2009

Leading insurance group

21.0%

16.9%

12.9%

8.1%

5.7%

3.6%

Adeslas

Sanitas

Asisa

Mapfre

Ergo (DKV)

CASER

13.2%

11.0%

10.0%

8.2%

4.3%

SegurCaixa

BBVA

Santander

Mapfre

Zurich

1st Health

1st Life and pensions

6th Non-life

Market share ranking (health, based on premiums)

Market share ranking (life and pensions, based on technical provisions and pension plans)

Good match of customers, products and channels

+

Source: ICEA and Inverco Source: ICEA


Erste Group Bank

Stock performance Erste Group Bank

05/02/2010

Base 100 on 01/01/2009

Strategic alliance

0

50

100

150

200

250

Jan-09 Jul-09 Jan-10

MSCI World Banks Index

Erste Group Bank

• Solid and growing business − Tier I: 10.2%; operating income (SEP’08-SEP’09): +27%− loans: 3% and deposits: 2%

• Strong and established presence in Central and Eastern Europe• More than 17 million customers and 3,169 branches

• Preferred co-investor in Central and Eastern Europe• Collaboration to expand current business• Service for “la Caixa” customers in Central and Eastern Europe and vice versa• Employee exchange programmes• Agreement between respective foundations


Bank of East Asia

Stock performance Bank of East Asia

05/02/2010

Base 100 on 01/01/2009

Strategic alliance

0

50

100

150

200

250

Jan-09 Jul-09 Jan-10

Bank of East Asia

MSCI World Banks Index

• 5th bank in Hong Kong (1st independent)• 1st foreign bank in China in terms of loans, 2nd in terms of branches

and 3rd in terms of assets• “Best localised foreign bank in China” (MoneyWeek, 2009)• More than 1.4 million customers and 250 branches

• Preferred partner in Asia-Pacific expansion• Know-how exchange (ATMs, treasury stock, electronic banking)• Complete range of international trade services• Agreement with Union Pay


Financial sector strategyInternational expansion with partners

05/02/2010

International positioning

Aims:Diversification, Growth, Customer service, Stimulating projects

Assisting customers

Strategic investment in

partners

Expansion of products and services

Own branchesInvestments Investments Distribution

agreements

Polonia

Rumania

Marruecos

Operational branchesAgency officesInvestments


Welfare Projects“la Caixa” Foundation


Welfare Projects

Total budget in sector “la Caixa” budget

05/02/2010

Millions of euros

400 500 500

1,2931,452

1,137

1,6931,952

1,637

2007 2008 2009

Savingsbanks “la Caixa”

297 279

356

64 63 6271 60 5533 29 2735

69

2008 2009 2010

Social Environment & science Cultural

Education and research Social fund

500 500 500


Combating social exclusionCaixaProinfancia

Distribution of aid Presence by territoryBreaking the poverty cycle

22%

35%

43%

Food and hygiene

Education

School equipment and others

Barcelona

Bilbao

MadridValencia

MurciaSeville

Malaga

Palma

Las Palmas

S. Cruz Tenerife

€102 million; 140,000 children

Poverty

DeprivationMarginalisation

CaixaProinfancia

UnemploymentExclusion

Insufficientfood

Insufficienteducation

05/02/2010


Beneficiary groupsCombating exclusion from employment

05/02/2010

Integration into the workforceIncorpora

30%

17%9%

4%

13%

8%

5%2%

12%

23,000people placed

in work

Immigrants

Over-45s

Young people

Disability…

… mental

… psychological

Gender-related violence

Employment support organisations

Socially responsible businesses

236

9,452

358 job developers

• Signing up businesses• Following up training• Assistance

Others

… sensorial

… physical


Benefiting social participationThe elderly

Cibercaixes Avoiding dependenceActive ageing

• Psycho-social assistance workshops• “One carer, two lives” programme

05/02/2010

• Training in new technologies• Healthy lifestyle• Group activities• Voluntary work

4,170 activities51,350 participants

10,675 activities455,000 participants

605 centres: 69 owned and 536 under joint agreements

• 525 Cibercaixes at senior citizen centres


Helping peopleIntegrated assistance for the terminally ill

30 teams of 4 people…

05/02/2010

6,793 patients10,794 family members

Location of health centres

• psychologists

• social workers

• nurses

• volunteers

… at 63 hospitals and in the home


More opportunities for everyone

05/02/2010

Accessible housingMicrobank

117.5

214.1

45.3Social Microloan

Financialmicroloan

Family assistance

Amount awarded (€M)

Number of operations

3,331

10,322

43,391

• Target groups: Young people, the elderly and low-income families

• Price: 240-300 euros rent per month

• Period: 10 years with purchase option

1,610 awarded1,176 under constructionTotal 376.9 57,044

Target 4,000


ResearchGrants

05/02/2010

PostgraduateSpainAbroad

221100121

Biomedicine 40

• AIDS

• Oncology

• Cardiovascular

• Endoscopic surgery

• Socio-economic development

• Crises and emergencies

• Training in Africa

• Vaccinations (GAVI)

Research International

• CaixaForum

• CosmoCaixa

• Alliances with museums

• Touring exhibitions

Culture and Science Environment

• Natural spaces

• Advanced command-centre vehicles

• “la Caixa” in Favour of the Sea

Other programmes


Looking ahead to 2010


Business environment in 2010Economic forecasts

05/02/2010

Inflation GDP

-6

-4

-2

0

2

4

6

8

10

12

I08 III08 I09 III09 I10 III10 I11 III11

USAEuro ZoneSpainChina

-4%

-2%

0%

2%

4%

6%

8%

10%

Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11

USAEuro ZoneSpainChina

Competitors• Concentration• New strategies• Cost reduction

Market

Customers

• Deleveraging• Increasing defaults• Low interest rates

Regulation• More and better capital• Liquidity• Uncertainty

• Segurity• Transparency• Pricing

Business environment in 2010Financial system


The recovery cycle

• Monetary• Fiscal• Financial

Economic policy

05/02/2010

ConsumptionSales

Profits

InvestmentUnemployment

Confidence/Expectations


Contents

05/02/2010

• “la Caixa” Group results for 2009

• Rigorous risk management

• Reinforcement of financial strength

• Robust commercial activity of “la Caixa” Group

2009: A difficult year

GlobalEconomic

crisis

TurbulentFinancial

environment

Adjusted forward management

• … of margins

• … of costs

• … of defaults

• … of solvency and liquidityHuman resourcesInternal communications

“la Caixa”Group

2009 Results Presentation 05/02/2010


Key issues for the Group in 2009

05/02/2010

High-qualityresults

• Recurring: increased income and cost containment. Improved efficiency

• Extraordinary: active management of investments and prudent allowance coverage

Robust commercialactivity

• Sustained growth in business: ∆ market share in Spain + Internationalisation

• Specialisation: consolidation of business model, with value proposal by segment, prioritising family banking

• Emphasis on quality of service• Continuing innovation: Cellphone banking, ATMs,

Internet

Rigorous riskmanagement

• Diversification of risk: complementary segments + Internationalisation

• Control of non-performing loans ratio: prudent forward management

• High allowance coverage, with active management of real estate

Consolidationof strengths

• High levels of solvency and liquidity• Ratings in the AA range

Thanks to the very special efforts and

dedication of all the “la Caixa” employees

Consolidation of results and strengths


Profit and loss account 2009Quality recurring results

Millions of euros

05/02/2010

• Excellent evolution of net operating income: €3,622 M (+12.3%)

• Efficiency ratio up to 42.9% (-2.3 pp)

• High level of allowance coverage (€2,821 M)

• Post-tax income of €2,004 M and attributed recurring income of €1,710 M (-16.7%)

2009 2008 change %

Financial income 9,097 12,401 (26.6)Financial costs (5,165) (8,893) (41.9)Net interest income 3,932 3,508 12.1Income from investments 1,240 1,113 11.4Net fees 1,303 1,250 4.2Income from financial operations and other products and operating charges 712 881 (19.2)

Total income 7,187 6,752 6.4Personnel costs (2,191) (2,113) 3.7

General expenses (893) (937) (4.7)

Administration costs (3,084) (3,050) 1.1Amortizations (481) (479) 0.5

Total operating costs (3,565) (3,529) 1.0Net operating income 3,622 3,223 12.3Allowances for insolvency and other (1,401) (617) 126.4Porfit/losses on the disposal of assets and others (90) 10Income tax (127) (299) (57.6)Post-tax income 2,004 2,317 (13.5)Income attributable to minority interests 294 265 10.7Recurring income attributed to the Group 1,710 2,052 (16.7)


Continuing reinforcement of balance sheet with precautionary allowance coverage against risk

05/02/2010

• Rotation of investments: €249 M net gains for the sale of 1% of Telefónica (Criteria)

• Extraordinary writedowns totalling €405 M gross (249 net attributed)

• Other allowances for future risk totalling €286 M gross (200 net attributed)

Extraordinary income has been used to reinforce the robustness of the balance sheet

milions of euros (net of tax) 2009 2008 change %

Recurring income attributed to the Group 1,710 2,052 (16.7%)

Extraordinary profits 249 260Sale of 1% of Telefónica 249Extraordinary income from insurance gap 160Fiscal benefits from reinvestment of capital gains 100

Extraordinary writedowns (249) (260)Risk from sub-prime loans an others (158) (160)Investments (91) (100)

Allowance coverage for future business risk (200) (250)

Income attributed to the "la Caixa" Group 1,510 1,802 (16.2%)


High-quality results

05/02/2010


Sustained increase in income

millions of euros

05/02/2010

3,9323,508

Loan investment

Deposits

Customerdifferential

2.42 2.38 2.18 2.20

5.264.69

4.073.59

2.842.31

1.891.39

1Q09 2Q09 3Q09 4T09

Strong banking business and careful management of margins

Customer differentialsNet interest income

+424+ 12.1%

2008 2009


Sustained increase in income

millions of euros

05/02/2010

Fees Income from financial operations and othersIncome from investments

Securities +29.3%

+13.6%

+4.9%

1,250 1,303

(15.8%)Investment funds

Other products

and charges

(dividends + income accounted forby the equity method)

1,2401,113

Banking

2008 20092008 2009

840

400395

718

Conservative approach in the current market climate

Positive evolution of income from investments

+127+ 11.4%

Accounted for by the equity method

Dividends

2008 2009

+53+ 4.2%

163

718

130

582

712

881

(169)(19.2%)

Income from

financial operations

(Income from financial operations and other products and operational charges)

Insurance & Pensions

Careful management of services offered to customers.

Recurring ratio of 42.2% (fees / operating costs)


Total incomeExcellent evolution of income

05/02/2010

millions of euros

2008 2009

Income from investments

Breakdown6,752

7,187

More traditional banking business segments and strong income on investments boosted total income

Combinedeffect

Income from financial operationsOther products / operating charges

Fees

Net interest income + 424

+ 127+ 53(33)

(136)

+ 435+ 6.4%

Total income Change in total income

+ 435+ 6.4%

46.1

45.2

42.9

2007 2008 2009


Strict cost managementContinuing improvements in efficiency

millions of euros and %

05/02/2010

2008 2009

Containment of operating costs

General

Amortizations

Personnel

- 4.7%

+ 0.5%

+ 3.7%

3,5653,529 + 36+ 1.0%

Strict policy for containing and rationalising costs

(2.3)

Personnel and general expenses /Total income (as %) Rise in income and costs

Income (gross margin)

Operating costs

+ 435+ 6.4%

+ 36+ 1.0%

Improvement in recurring efficiency ratio


Strong increase in net operating income

millions of euros

05/02/2010


+ 399+ 12.3%

3,6223,223

Excellent capacity to

generate profits that allows

the “la Caixa” Group to act

prudently and with high

levels of quality


Total gross allowances for business riskIncreased robustness of the balance sheet

millions of euros (before tax)

05/02/2010

Allowance coverage for insolvencies (2,243) Charged to 2009 financial year (2,092)

Specific coverage (1,897) Recurring income (1,401)

Sub-prime risk and others (241) Extraordinary income (691)

Precautionary coverage (105) Charged to previous financial years (729)

Allowance for early retirement payments (181) Extraordinary fund 2008 (357)

Allowance for investment portfolio (164) Drawdown of general fund (372)

Allowance for real estate (103)*Other allowance coverage (130)

Total allowance coverage (2,821)

Total gross allowance coverage in 2009 Impact on results

Total allowance coverage

(€2, 821 M)


High-quality results


05/02/2010

Allowance coverage and taxes

(617)(1,401)

(289)

(217)2008 2009


Allowance coverage

3,2233,622

Taxes and others

2009Income

after tax€2,004 M(13.5%)

+12.3%

+126.4%

(24.7%)


High-quality recurring income


05/02/2010

Recurring incomeMinority interests

2008 2009

(265) (294)

(29)+ 10.7%

2,0521,710

(342)(16.7%)

€200 Mfor future risk

Income attributed to the Group

€1,510 M(16.2%)

2008 2009


“la Caixa” Group’s robust commercial activity

05/02/2010


Highly complex environment2009 (November) year-on-year change as %

05/02/2010

Loans to other resident sectorsDeposits from other resident sectors

Source: Bank of Spain

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Banks

Savings banks

1.1%

-4.6%

Sector-1.5%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Banks

Savings banks

Sector-1.5%

-0.6%

-2.4%


“la Caixa”: ahead of the market


05/02/2010

The positive management of margins...

Source: Bank of Spain

... and the rise in loan business ... ... lead to positive growth in business volumes

2008 2009

237,700

+990.0%

237,799

2008 2009

176,423

+1,603+0.9%

178,026

144,272 157,300+9.0%

+1,702+0.4%

RWA

2008 2009

414,123 415,825

Funds Loans Business volumes


Total customer fundsMaintaining volumes, defending margins

millions of euros

05/02/2010

Demand savingsTerm savingsRetail debentures and subordinated debtInstitutional issuesOther resources on balance sheet

Customer funds on balance sheet

Investment fundsPension plansOther managed resources

Off balance sheet funds

Total customer funds

year-on-yearchange %

954(5,857)

(639)822975

(3,745)

2.5141,575(245)

3,844

99

1.7(7.3)(4.7)

2.14.4

(1.8)

19.415.1(4.9)

13.6

0.0

55,67074,16112,94739,79123,062

205,631

15,45711,9824,729

32,168

237,799

2009

Active management of term funds with

movement to products with

higher margins


Customer loansContinuing growth

At 31 December, millions of euros

€104,045 Min new loans during 2009 in 1.1 million

operations

Loans to public sector 6,298 1,671 36.1

Loans to private sector 171,728 (68) 0.0

With mortgage guarantee 119,607 (1,193) (1.0)

With personal guarantee and others 52,121 1,125 2.2

Total customer loans, gross 178,026 1,603 0.9

2009 year-on-year change %


Customer loansMarket share

05/02/2010

8.9% 9.0% 9.1% 9.6% 9.9%

2005 2006 2007 2008 2009 (sep.)

Loans to resident private sector Breakdown by guarantee type

6.4% 6.2%6.5%

8.1%

9.1%

10.5%10.9% 10.9% 10.8% 10.6%

2005 2006 2007 2008 2009 (sep.)

Maintenance of loan business

Mortgage

Non-mortgage

*

* November 2009


1st 2ndCard turnover Merchant business (PSTs)Salaries paid in* Pensions paid in*Demand deposits Life insurance MortgagesNational ElectronicClearing System (SNCE)No. of branches ATMs

Factoring and ConfirmingLoans without mortgageInvestment funds *

Pension plans *DepositsLoans

3rd

17.7% 20.9%15.1%12.8% 11.3%13.4% 10.6%

12.7%12.0%12.9%

15.6%10.4% 9.9%

11.0%9.1%8.5%

Among the top three institutions for the main financial products

Market leadersRankings and market share

September 2009

*December 2009


Consolidation of our business modelLarge customer base

Family banking

CompaniesIndividuals

200M10M

10M0.5M

1M0.1M

CorporateBanking

Large Estates

PrivateBanking

BusinessBanking

PersonalBanking

SMEBanking

10.5 millionCustomers

2007-2010Strategic Plan:

Boost retail banking business

with the development of complementary

segments

252

468,107

9.8 million

65,013

380

92,074

28,814

(Assets managed, in €M) (Turnover, in €M)


Family bankingThe cornerstone of our business

18.8

20.3 20.421.0

21.6

2005 2006 2007 2008 2009

Individual customermarket penetration (%)

Market penetration 2009 by age group (%)

26.9%

23.3%

19.7%

16.5%Pensioners(+65)

Borrowers(26-44)

Young people(18-25)

Savers(45-64)

Marketleader

No. 1Institution

with15.8%

Market penetration, individual customers

Source: FRS Inmark


Leaders in family bankingNo. 1 in Spain, with an all-round increase in market share

14.4%14.8%

15.1%

2007 2008 2009

Salaries

12.9%

14.7% 15.6%

2007 2008 2009

Pension Plans

Pensions

Investment Funds

12.5%12.6%

12.8%

2007 2008 2009

5.6%6.9%

8.5%

2007 2008 2009

2,011,969 Salaries paid in

1,029,315Pensions paid in

Growth in assetsof 19.3%

High levels of commercial business


842 Universal Branches with specialist manager

Catalonia 489

Balearics 37Madrid 119

Valencia –Murcia 25

Castillas 34

Canaries 6

North 88

Personal BankingSpecialist managers

Personal management

Professionalism

Experience

Know-how

Proximity

Roll-out completed in 2009

€57,703 M managed

South 44

Custom -made


Integration of Morgan Stanley

completed

€40,985 M managed(+21.5%)

31 Specialist Centres

Catalonia 5

South 5

Balearics 1Madrid 2


Castillas 4

Canaries 2

North 8

Private Banking


SME Banking

820 Universal Branches with specialistmanagers

Catalonia 195

South 133



Castillas 62

Canaries 26

North 119

Branch managers with 121,832 customers

SME managers with 56,906 customers

4,495

852

Loan investment€28,616 M

Roll-out completed

in 2009

Operational benchmark – Market share


2 Corporate Banking Centres and 80 Business Banking Centres

North 10

Catalonia 19

South 9



Canaries 2

Castillas 81

1

Business Banking

Corporate Banking

Corporate and business banking

10.4%11.0%

11.4% 12.0%

13.2%

4.4% 4.4% 4.5%

5.9%

8.9%

2005 2006 2007 2008 2009 (nov.)

Confirming

Factoring

Share of foreign trade– Documentary Credits


International

9.6%10.3%

12.7%

5.1%5.7%

9.4%

2007 2008 2009

Imports

Exports

2009:

New operational branch

in Casablanca

New agency offices in

Shanghai and IstanbulBoost for international growth strategy, supporting our customers

and diversifying the business

Poland

Morocco

Romania

OperationalAgency officesInvestments


Total branches 5,326

Overall networkSpecialist centres

Corporate and institutional banking

Business banking

Private banking

Branches in SpainInternational branches

5,200115

80

31

5,31511

4

Market share12.0%

Excellent network distribution to offer a local service to customers


55% of all transactions via the Internet and ATMs

Self-service systems Share of operations by channel

2009 % share

Línea Abierta (1000s cust.) 6,020

Users (1000s) 2,964

30.1%

ATMs 7,951 12.9%

Business (PSTs) 167,993 20.9%

Cards (1000s) 10,294 17.7%

Cellphone banking (1000s cust.) 1,400 52.0%

3.9 million operations (+4%)

At 31 December

Leader in multi-channel managementInnovation at the service of the customer

11%

14%

41%

34%

Branch

Automatic

ATMs

Internet


At 31 December 2009

Human Resources

“la Caixa” -391

Rest of Group

Total

24,944

+78

-313

2,561

Branch networkFamily banking

Personal banking

Private banking

SME banking

Business banking

Corporate and institutional banking

Network and foreign business

Regional and General offices

Central services

23,41519,289

946

373

852

735

172

444

604

1,529

27,505Corporate Reputation Monitoring Company

“la Caixa” is the best

company to work for in

Spain


Excellent quality

Quality of service – Brand reputation

• 223.457 customer surveys:Average score 8.4, rising to 9 for customers with advisers

• Overall leader in all Internet services(AQMETRIX 2008)

• Company with the lowest complaints ratio(Bank of Spain)

Corporate ReputationMonitoring Company

“la Caixa” is the financial brand with

the best reputation


Rigorous risk management

05/02/2010


Credit riskDiversified loan portfolio with sound guarantees

05/02/2010

• 88.5% of the mortgage portfolio LTV< 80%• 89.7% of the mortgage portfolio covers first

and primary residences

Diversification of portfolio With sound guarantees

Mortgage guarantee

Other guarantees

52%

41%7%

Individuals

BusinessesRemainder

66 %

34 %

High-quality loan portfolio and careful risk management

Average LTV 49 %


Credit riskStrict risk-monitoring

05/02/2010


Total non-performing loans and ratio

2.48%

3.40% 3.38% 3.53% 3.42%

Non-performing loans ratio

Total doubtful loans

“la Caixa”3.42%

Sector average 5.05%

(November)

4,590

6,345 6,367 6,577 6,321

2008 1Q09 2Q09 3Q09 4Q09

1,048

2,057

1,437

2,626

1,0731,428

1,067

552-863

-1,304-1,406

-356 -361 -244-562

-871

0300600900

120015001800210024002700

Entrades Sortides


Credit riskStrict monitoring of non-performing loans

05/02/2010

millions of euros

Fewer added in

2009

Significant increase in numbers removed

Removed

Doubtful loans. Added and removed, by quarter

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Added

% recovery 30% 72%

Active forward management


Total allowance coverage for business risk

05/02/2010

millions of euros

Allowance coverage amounts and ratios

66%51%

60% 60% 62%Coverage ratio

Allowance coverage

0.54%Cost of risk 1.24% 1.02% 0.97% 1.01%

General fund2008

€1,890 M

General fund2009

€1,835 M(€55 M)

Specific fund

€2,079 M

General fund

€1,835 M(100% of α factor)

Total coverage 2009

General fund movements

Total coverage3,914

3,026 3,2403,790 3,917 3,914

2008 1Q09 2Q09 3Q09 4Q09


Active management of real estate investmentsServihabitat

05/02/2010

millions of euros

• The “la Caixa” Group’s real estate services company.

• More than 500 estate agencies

• Sales and undertakings: €510 M (2,854 properties)

• 1,100 formal lease agreements

Net real estate portfolioServihabitat

Properties available for sale 2,726

Developer properties 1,900Private properties 826

Leased properties 371

Total net real estate portfolio 3,097Coverage 20%

Evolution of developer portfolio

1,158

481 464

1045 13 20

313

1Q09 2Q09 3Q09 4Q09

Added

Removed


Consolidating the Group’s financial strength

05/02/2010


Liquidity of 21,208 million

05/02/2010

millions of euros

Assured business growth in order to respondto our customers’ credit requirements

Institutional issues(19%)

Customer liabilities(70%)

Banking deposits (11%)

2009

Balancesheet

liquidity

ECB facility

Totalliquidity

21,208

11,042

10,166

7.8% of Group assets

Excellent liquidity position ...

Matured 2009:

Issued 2009:

Underwritten debtMortgage bonds Criteria bondsMortgage bonds for EIB and FAAF

Ordinary bonds and others

Maturing 2010:

3,170

5,605

2,0002,0001,000

450

155

2,810

... with good financing structure … Institutional business

... offering stability≈ 100% immediately accessible ... without pressure in 2010


millions of euros

Excellent levels of solvencySecurity and guarantees for the future

Core Capital

Tier 1

BIS Ratio

Minimum required

Excess capital

Risk-weighted assets (RWA)

8.7%

10.4%

11.0%8.0%

13,735

16,349

17,25112,584

4,667

157,300

Ratio millions of €

Solvency ratios to 31.12.2009 – Basel II

Ratings in the AA range

Core Capital:Self-financing growth (RWA + 9%) with Group income

New investments (Erste, BEA, Gas Natural)

Reinforced with issues:• Preferential shares: 1,898• Subordinated debt: 2,500

In 2010 (in course):• Subordinated debt: 2,000-3,000


millions of euros

In short, in a difficult climate …

• Great capacity to generate recurring income

• High levels of commercial business: quality of service

• Multi-channel and specialist approach: services for all customers

• Robust balance sheet

• Welfare Projects: value in today’s world

All-round increases in market share


Appendices


Customer fundsCustomer loans (gross)

Recurring incomeExtraordinary incomeTotal income

Market value (Criteria listed investments) Unrealised gains

Recurring Efficiency RatioRecurring ROE

Branches (number)Employees (number)

Non-performing loans ratioAllowance coverage

with mortgage guarantee

LiquidityCore CapitalTier 1BIS ratio

Welfare Projects Budget for 2010

237,799178,026

1,710-200

1,510

20,1183,945

42.9%11.3%

5,32627,505

3.42%62%

127%

21,2088.7%

10.4%11.0%

500

+0.0%+0.9%

-16.7%

-16.2%

-2.3 pp-3.5 pp

+99+1,603

-1,054

+5,427+2,919

-204-313

+0.94 pp-4 pp-2 pp

-0.1 pp+0.3 pp

0.0 pp

Banking business

Income

Listed investments

Efficiency & profitability

Default and coverage

Liquidity and

solvency

Resources

Welfare Projects

December 2009 Change / 2008

millions of € millions of € %

“la Caixa” Group highlights January-December 2009


“la Caixa” Group management profit and loss account

(amounts in millions of euros)

Financial income 9,097 12,401 (26.6)Financial expenses (5,165) (8,893) (41.9)Net interest income 3,932 3,508 12.1Dividends 400 395 1.3Income accounted for by the equity method 840 718 17.0Net fees 1,303 1,250 4.2Income from financial operations and exchange rate differences 130 163 (19.7)Other products and operating charges 582 718 (19.1)Total income 7,187 6,752 6.4

Personnel costs (2,191) (2,113) 3.7General expenses (893) (937) (4.7)

Administration costs (3,084) (3,050) 1.1Amortizations (481) (479) 0.5

Total operating costs (3,565) (3,529) 1.0Net operating income 3,622 3,223 12.3Losses for impairment of financial assets and others (1,401) (617) 126.4Profits/losses on the disposal of assets and others (90) 10Pre-tax income 2,131 2,616 (18.6)Income tax (127) (299) (57.6)

Post-tax income 2,004 2,317 (13.5)

Income attributable to minority interests 294 265 10.7

RECURRING INCOME 1,710 2,052 (16.7)Extraordinary income 249 260Extraordinary writedowns (249) (260)Allowances for the future management of the business (200) (250)Extraordinary income (200) (250)

INCOME ATTRIBUTED TO THE GROUP 1,510 1,802 (16.2)

2009 2008 % change


Management Consolidated Balance Sheet

(Amounts in millions of euros) 2009 2008 Absolute %

Cash, central banks, credit institutions and fixed income 33,678 30,203 3,475 11.5Net customer loans 173,641 175,471 (1,830) (1.0)Insurance contract assets 21,261 19,829 1,432 7.2Variable income 19,997 15,624 4,373 28.0Non-current assets for sale 2,194 582 1,612 277.0Tangible and intangible assets 6,651 6,654 (3) (0.0)Other assets 14,451 12,464 1,987 15.9

Total assets 271,873 260,827 11,046 4.2Liabilities 250,470 241,906 8,564 3.5

Credit institutions 22,521 13,290 9,231 69.5Customer funds on balance sheet 205,631 209,376 (3,745) (1.8)Allowances 2,925 3,195 (270) (8.5)Other liabilities 19,393 16,045 3,348 20.9

Net equity 21,403 18,921 2,482 13.1

Own funds 16,696 15,619 1,077 6.9of which, Income attributed de the Group 1,510 1,802 (292) (16.2)Valuation adjustments 1,612 649 963 148.4Minority interests 3,095 2,653 442 16.7

Total liabilities and net equity 271,873 260,827 11,046 4.2

Change


Customer loans by segment


2009 year-on-year change as %

Public sector loans 6,298 1,671 36.1

Private sector loans 171,728 (68) 0.0

With mortgage guarantee 119,607 (1,193) (1.0)

With personal or other guarantee 52,121 1,125 2.2

Total gross customer loans 178,026 1,603 0.9

Note:

Doubtful loans 6,226 1,733 38.6



Customer funds

2009 year-on-year change as %

Financial liabilities - Customers 186,690 (4,953) (2.6)

Own products 142,778 (5,542) (3.7)

Demand savings 55,670 954 1.7

Term savings 74,161 (5,857) (7.3)

Retail debentures and subordinated debt 12,947 (639) (4.7)

Repurchase agreements and other 4,121 (233) (5.4)

Institutional issues 39,791 822 2.1

Liabilities under insurance contracts 18,941 1,208 6.8

Total customers funds on balance sheet 205,631 (3,745) (1,8)

Investment funds 15,457 2,514 19.4

Pensions plans 11,982 1,575 15.1

Other managed funds 4,729 (245) (4.9)

Off-balance-sheet funds 32,168 3,844 13.6

Total customer funds 237,799 99 =


“la Caixa” Group Profit and Loss Account

(amounts in millions of euros) 2009 2008

Financial income 9,097 12,401Financial expenses (5,165) (8,893)Net interest income 3,932 3,508Dividends 400 395Income accounted for by the equity method 840 718Net fees 1,303 1,250Income from financial operations and exchange rate differences 130 163Other products and operating charges 582 947Total income 7,187 6,981

Personnel costs (2,191) (2,113)General expenses (893) (937)

Administration costs (3,084) (3,050)Amortizations (481) (479)

Total operating costs (3,565) (3,529)Net operating income 3,622 3,452Losses for impairment of financial assets and others (1,805) (1,388)Income from operations 1,817 2,064Profits/losses on the disposal of assets and others 51 10Pre-tax income 1,868 2,074Income tax (35) (11)

Post-tax income 1,833 2,063

Income attributable to minority interests 323 261

INCOME ATTRIBUTED TO THE GROUP 1,510 1,802


Grupo SegurCaixaHolding

+ Adeslas

GDS- Correduría

Not listed

MediterraneaBeach & GolfResort

Port Aventura Entertainment

100

50

Listed

Invercaixa Gestión

CaixaRenting

Finconsum

GestiCaixa

Listed

GF Inbursa

The Bank of East Asia

Erste Group Bank

Banco BPI

Boursorama

20.0

14.9

10.1

30.1

20.9

Not listed

Gas Natural

Abertis

Agbar

Repsol YPF

Telefónica

BME

100

99.8

67

Services Insurance and specializedfinancial services

Criteria CaixaCorp

79.45%

36.4

25.0

15-25

12.7

5.2

5.0

100

100

100

100

CaixaRenting

Finconsum

InverCaixa

GestiCaixa

“la Caixa” 100

100100

100100100

MicroBankCaixaVidaSumasa

ServiHabitat XXIGrup e-la Caixa

SILKe-la Caixa

Group Companies

Internacional banks

(*) 2009 agreements not yet implemented(**) Holding at 14-01-2010.

(*)(*)

(**)

Variable Income PortfolioAt 31 December 2009, figures shown as %

“la Caixa” Group 2009 Results Presentation Barcelona, 5 February … · 2010-12-23 · Erste...

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Transcript of “la Caixa” Group 2009 Results Presentation Barcelona, 5 February … · 2010-12-23 · Erste...