190 EuroWeek Financing financial institutions
Espirito Santo Financial Group
Espirito Santo Financial Group
Covered bonds Subordinated debt Senior unsecured Securitisation
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2005 2006 2007 2008 2009 2010
Source: Dealogic. Data to August 20 2010
$m
Debt issuance
Debt issuance
Rank Lead Manager amount $m no of issues
% share
1 Banco Espirito Santo
1,344 5 25.16
2 Credit Agricole CIB 718 3 13.45
3 JPMorgan 666 2 12.46
4 Deutsche Bank 382 2 7.15
5 UBS 372 1 6.96
5 Morgan Stanley 372 1 6.96
7 LBBW 296 1 5.55
7 HSBC 296 1 5.55
7 Bank of America Merrill Lynch
296 1 5.55
10 Credit Suisse 217 1 4.06
10 Citi 217 1 4.06
subtotal 5,178 6 96.91
total 5,343 6 100
Source: Dealogic (Sep 20, 2009 to Sep 19, 2010)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2010
20
11
2012
2013
2014
20
15
2016
2017
2018
2019
2020
2021
-204
0
2041
+
Source: Dealogic. Data to September 1, 2010 (securitisations not included)
$m
MatuRity PRofiLe
toP bookRunneRs
cfoFilipe Worsdell+44 20 7332 [email protected]
key contacts
Actual t
ier one
(2009)
Benchmark sce
nario
Adverse sce
nario
Additional
sovereign sh
ock
Source: Committee of European Banking Supervisors
%
7.7
9.2
7.4 6.9
0
1
2
3
4
5
6
7
8
9
10
cebs stRess tests
Source: Espirito Santo Financial Group
€ bn
83.5
84.0
84.5
85.0
85.5
86.0
86.5
87.0
87.5
88.0
88.5
Dec 31, 2009 Jun 30, 2010
totaL assets
Source: Espirito Santo Financial Group
%
0
2
4
6
8
10
12
14
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
caPitaL Ratios (bes)
espirito santo financial Group sa
Long term iDR bbb+ (negative outlook)short term iDR f2support Rating 5support Rating floor no floor
summary:The IDRs and individual rating of Banco Espírito Santo (BES) reflect its strong domestic franchise, diversification by business and geography, healthy asset quality and sound capital adequacy. It also considers certain risk concentrations in the real estate and construction sectors, volatility in revenues from financial market operations and some refinancing risk. The Portuguese operating environment will remain challenging with competition increasing for customer resources as a result of the continued constraints in the international capital markets with long-term funding costs remaining high. This may exert some pressure on BES’s margins, although the impact of low interest rates on lending should be partly off-set by active negotiation of higher spreads. Further recovery in the financial markets should assist asset management and insurance-related savings activity and support fee income generation. Together with its strong domestic franchise and a further improvement in cost control, BES should maintain sound underlying profitability and have the flexibility to absorb further loan impairment charges.
fitch RatinGs uPDate
Financing financial institutions EuroWeek 191
Espirito Santo Financial Group
bes investimento do brasil sa
Pricing date: March18,2010
Value: $500m
Maturity date: March25,2015
coupon: 5.625%
spread to benchmark: 346.3bpoverUSTs
bookrunners: DeutscheBank,BancoEspiritoSanto,StandardBank
banco espirito santo sa
Pricing date: January12,2010
Value: €750m
Maturity date: January21,2015
coupon: 3.875%
spread to swaps: 125bp
bookrunners: CreditAgricoleCIB,Citi,CreditSuisse,DeutscheBank,BancoEspiritoSanto
banco espirito santo sa
Pricing date: November17,2009
Value: €1bn
Maturity date: February25,2013
coupon: 3mEuribor+100bp
bookrunners: BancoEspiritoSanto,JPMorgan,MorganStanley,UBS
Source: Dealogic
Recent DeaLs
Source: Espirito Santo Financial Group
%
0
100
200
300
400
500
600
700
800
900
1000
2006 2007 2008 2009 1H10
Pre-tax profit Net income
€ m
incoMe stateMent
Source: Espirito Santo Financial Group
%
0
10
20
30
40
50
60
2008 2009 1H10
cost/incoMe Ratio (bes)
Source: Espirito Santo Financial Group
%
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2005 2006 2007 2008 1Q09 2Q09 3Q09 4Q09
nPL Ratio (bes)
Source: Espirito Santo Financial Group
€ bn
52
53
54
55
56
57
58
59
60
61
62
63
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
Risk-weiGhteD assets (bes)
Source: Espirito Santo Financial Group
bp
155
160
165
170
175
180
185
190
195
200
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
net inteRest MaRGin (bes)
Source: Espirito Santo Financial Group
%
9.4
9.5
9.6
9.7
9.8
9.9
10.0
10.1
2008 2009 1H10
RetuRn on equity (bes)
Source: Espirito Santo Financial Group
Banco Espirito Santo 78%
Other banking
17%
Insurance 4%
Other 1%
net PRofit by sectoR
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