Banco Sabadell FY10 Results

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Banco Sabadell FY10 Results

  1. 1. Banco SabadellFY10 Results January 27th, 2011
  2. 2. DisclaimerBanco Sabadell cautions that this presentation may contain forward looking statements with respect tothe business. financial condition. results of operations. strategy. plans and objectives of the BancoSabadell Group. While these forward looking statements represent our judgement and futureexpectations concerning the development of our business. a certain number of risks. uncertainties andother important factors could cause actual developments and results to differ materially from ourexpectations. These factors include. but are not limited to. (1) general market. Macroeconomic.governmental. political and regulatory trends. (2) movements in local and international securitiesmarkets. currency exchange rate. and interest rates. (3) competitive pressures. (4) technicaldevelopments. (5) changes in the financial position or credit worthiness of our customers. obligors andcounterparts. These risk factors could adversely affect our business and financial performancepublished in our past and future filings and reports. including those with the Spanish Securities andExchange Commission (Comisión Nacional del Mercado de Valores).Banco Sabadell is not nor can it be held responsible for the usage. valuations. opinions. expectationsor decisions which might be adopted by third parties following the publication of this information.Financial information by business areas is presented according to GAAP as well as internal BancoSabadell group´s criteria as a result of which each division reflects the true nature of its business.These criteria do not follow any particular regulation and can include forecasts and subjectivevaluations which could represent substantial differences should another methodology be applied.The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of thispresentation should inform themselves about and observe such restrictions.These slides do not constitute or form part of any offer for sale or subscription of or solicitation orinvitation of any offer to buy or subscribe to any securities nor shall they or any one of them form thebasis of or be relied on in connection with any contract or commitment whatsoever. 2
  3. 3. Index1. 2010 in summary2. FY10 Results3. Commercial activity, balance sheet and liquidity4. Risk management5. Banco Guipuzcoano integration6. CREA 3
  4. 4. 1. 2010 in summary 4
  5. 5. 2010 in summaryCapital ratios improvementImportant commercial GAP generationComfortable liquidity position, no reliance on ECBNet interest margin reflects a higher cost of fundingSustained growth in the number of customers and depositsLoan growthContinued improvement in the new NPL entries trendHigh coverage of real estate assetsGood cost management and efficient integration of BancoGuipuzcoano 5
  6. 6. 2. FY10 results 6
  7. 7. FY10 results 2009 2010 Var.Net Interest Income 1,600.6 1,459.1 -8.8%Equity Method & Dividends 86.5 87.1 0.7%Commissions 511.2 516.5 1.0%Trading Income & Forex 297.4 262.7 -11.7%Other Operating Results 9.3 5.9 -36.9%Gross Operating Income 2,505.0 2,331.3 -6.9%Personnel Costs -715.3 -679.7 -5.0%Administrative Costs -321.5 -356.3 10.8%Depreciations -142.7 -159.0 11.4%Pre-provisions Income 1,325.5 1,136.3 -14.3%Total Provisions & Impairments -837.7 -968.1 15.6%Gains on sale of assets 83.6 296.1 -Profit before taxes 571.3 464.3 -18.7%Taxes and others -48.9 -84.3 72.5%Attributable Net Profit 522.5 380.0 -27.3% 7
  8. 8. Well capitalisedCapital ratios evolutionIn % 11.08 Core capital 2010: 8.20%10.87 10.80 +54 bp YoY 9.78 1.72 1.70 3.64 1.16 2.49 1.44 Tier I capital 2010: 9.36% 1.21 0.61 +26 bp YoY 7.66 8.206.01 6.672007 2008 2009 2010 Core Capital Lower Tier I Tier II 8
  9. 9. Net interest margin reflects thehigher cost of funding ...Net interest income evolutionEuros in million - 8.8 % 1,600.6 1,459.1 418.6 402.3 394.6 385.2 374.1 391.1 361.2 332.8 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010 9
  10. 10. … with impact in the customer spreadMargins evolutionIn percentage 2.06% 1.98% 1.95% 1.80% 1.83% 1.85% 1.86% 1.81% 1.79% 1.78% 1.65% 1.47% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Net interest margin 5.93% 6.06% 6.28% 6.29% 5.56% 4.93% 4.21% 3.79% 3.53% 3.65% 3.47% 3.48% 3.49% 3.50% 3.13% 3.22% 2.83% 2.72% 2.52% 2.31% 2.17% 2.05% 1.91%2.80% 2.84% 2.81% 2.81% 2.73% 2.21% 1.80% 1.70% 1.48% 1.36% 1.44% 1.59% 1.85% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Customer spread Customer loan yield Cost of customer funds 10
  11. 11. The cost of new term deposits hasdeclined Cost of new term deposits New term deposits In percentage Euros in million 3,07% 3,28% 3,11% 2,94% 2,97% 2,81% 2,84% 2,80% 2,61%2,02% 2,17% 2,07% 2,17% 9,279 8,378 8,086 7,956 18% 14% 18% 1,54% 1,53% 1,51% 21% 1,42% 1,41% 1,43%1,25% 1,23% 1,22% 1,21% 1,24% 1,26% 1,31% 21%d-09 e- 10 f -10 m-10 a-10 m-10 j-10 j- 10 a-10 s-10 o- 10 n-10 d-10 45% 34% 30% Coste depósitos a plazo nueva entrada Euribor 12MStock of term depositsIn percentage 61% 48% 49% 41% 19% 31% 1Q10 2Q10 3Q10 4Q10 1-6 months Up to 12 months 50% Over 12 months 1-6 months Up to 12 months Over 12 months No incluye Banco Guipuzcoano 11
  12. 12. Commissions show animprovementCommissions evolutionEuros in million + 1.0 % 511.2 516.5 44.4 45.9 45.3 43.8 170.1 173.7 42.3 41.6 42.4 38.1 60.6 52.8 60.8 52.1 51.9 54.2 51.8 53.1 217.4 219.9 29.8 34.1 28.6 31.2 31.2 30.7 28.1 32.8 123.6 122.8 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010 Asset Mgmt1 Services Lending1 Including mutual funds commissions and pension funds and non-life insurance brokerage 12
  13. 13. Personnel expenses reflectgood cost control…Personnel expenses evolutionEuros in million - 5.0 %31.6 15.5 715.3 679.7 23.6 10.6 20.9 3.2 1.0 2.9 22.6 86.6 162.2 162.5 172.6158.1 157.2 159.6 153.7 159.9 657.1 628.71Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010 Recurrent Non-recurrent Personnel cost control like-for-like (+0,1% YoY) 13
  14. 14. Administrative costs remain flatlike-for-likeAdministrative costs evolutionEuros in million +10.8 % 7.6 356.3 7.6 20.3 5.1 321.5 93.5 88.0 84.3 78.9 80.8 82.0 321.5 336.1 73.7 76.01Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010 Recurrent Sale&Leaseback 14
  15. 15. The transformation plan has achievedits targets for 2010Cost reduction measures FTEs* administrative by branch• The new outsourcing centre has already exceed 160,000 monthly transactions, reaching cost optimization and enabling us to free- up capacity in order to take on new 2.25 2.00 1.95 network administrative tasks 1.67 1.37 1.25• Strengthening the self-service channels and focusing on Internet and mobile phone banking• Internet based transactions are 2004 2006 2007 2008 2009 2010 increasing by 14% and the number Accumulated reduction -790 FTE of Internet/mobile users has * FTE= Full Time Equivalents increased by 10% 15
  16. 16. Network optimisation continuesEmployees and branches Cost /income ratioevolution In number In % 45.5% 46.2% 43.1% 43.1% 42.1% 42.3% 43.6% 41.9% 10,777 9,839 9,746 9,7019,668 9,624 9,615 9,559 9,466 1.4671,229 1,230 1,223 1,214 1,221 1,223 1,222 1,221 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 11Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q102 Branches Employees Excluding BG Cost / income ratio excluding11Q10 Sabadell United Bank acquisition non-recurrent costs 4Q10:2 4T10 Banco Guipuzcoano acquisition 45.2% 16
  17. 17. Important effort in provisionsduring 2010Total provisions and impairments evolution and breakdownEuros in million 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10Specific 105.9 148.4 168.5 141.0 228.0 212.2 186.1 124.7Extraordinary charge 0.0 0.0 0.0 0.0 0.0 90.0 46.0 66.0New regulation in loans 0.0 0.0 0.0 0.0 0.0 0.0 -120.0 0.0Substandard 41.9 87.5 258.7 3.4 -54.2 -31.2 -61.9 -30.3Metrovacesa 0.0 46.7 43.4 94.3 0.0 0.0 0.0 76.1Real estate assets 0.3 57.0 67.1 57.2 46.0 209.8 160.9 49.9BCP 0.0 0.0 0.0 210.0 0.0 38.5 0.0 16.2Goodwill and others 1.0 -0.3 9.1 53.5 8.9 5.3 12.2 4.2Subtotal 149.1 339.2 546.8 559.4 228.6 524.6 223.3 306.8Generic 0.0 -129.4 -315.5 -311.8 -61.2 1.7 -103.2 -152.6Total prov. and impair. 149.1 209.8 231.3 247.6 167.4 526.3 120.1 154.2 € 837.8m € 968.1mWith a provisions coverage ratio of 57% Metrovacesa NAV: € 21.07 17
  18. 18. 3. Commercialactivity, balance sheetand liquidity 18
  19. 19. Important growth in the number ofcustomers …Significant success in gaining Two major campaigns to attractnew customers clients Dec-09 Dec-10 % Var. Cuenta Expansión:Individuals 128,567 200,507 +56% 92,463 new accountsCompanies 24,567 39,611 +61% BS Negocios: 46,585 new accountsComparative brandrecognition*25201510 BS 5 0 S30 S32 S34 S36 S38 S40 S42* BS compared with the main Spanish financialinstitutions 19
  20. 20. … maintaining a good level oftransactions on the credit side …Mortgages Loans5.000 10.0004.000 8.0003.000 6.0002.000 4.0001.000 2.000 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10Credit lines Working capital financing*10.000 2.500 8.000 2.000 6.000 1.500 4.000 1.000 2.000 500 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10In number of new contracts* Under CreditGlobal product 20
  21. 21. … increasing market shares …ICO Credit Cards turnoverDec. 09 5.53% Dec. 09 2.60% +380 bp +14 bpDec. 10 7.97% 9.33% (incl. BG) Dec. 10 2.74%PoSs turnover Documentary letter of credit, exportsDec. 09 5.10% Dec. 09 21.33% +94 bp +200 bpDec. 10 6.04% Dec. 10 23.33%Documentary credit of credit, imports Improved market sharesDec. 09 15.02% +71 bp in international trade, an important driver of theDec. 10 15.73% Spanish economy recovery 21
  22. 22. … and a leader in quality of service Fewest claims Most valued 7.01 7.39 7.60 7.38 7.45 7.41 Banco Sabadell Bancaja 2009 2008 BBK 6.95 Caixa Catalunya 6.38 6.78 6.77 6.61 6.11 La Caixa Caja Madrid Banco Popular 2005 2006 2007 2008 2009 2010 Banco Santander Ibercaja Banco Sabadell group Market CAM Source: STIGA, “RCB Análisis de Calidad Objetiva en Redes BBVA Comerciales Bancarias. Avance trimestral de resultados, 4Q10 Cajastur CGACanarias Banco Valencia Caja España Banco Pastor Caja Duero Four consecutiive years Unicaja (2007-2010) increasing the CCM Cajasol difference vs the system Barclays Bank Banesto CajasurBanco Guipuzcoano Deutsche Bank Caixa Galicia Renewal of the Santander Bankinter Global Award of 0 5 10 15 20 European Source: Banco de España, Memoria del servicio de reclamaciones del Excellence BdE 2009 and 2008 22
  23. 23. Customer funds growing …Customer funds evolutionEuros in million % Var. 2009 2010 % Var. (ex. BG)On-balance sheet customer funds* 38,131 49,374 29.5% 16.0%Fix-term deposits 22,150 30,092 35.9% 20.7%Off-balance sheet funds 18,082 18,834 4.2% -1.2%Mutual funds 9,151 8,853 -3.3% -9.9%Pension funds 2,788 3,016 8.2% -4.2%Third party insurance products 5,380 5,727 6.4% 6.1%Gross loans to customers ex repos 65,013 73,058 12.4% 0.6%* Excluding repos and including preferent shares and mandatory convertible bonds placed in the retail network. 23
  24. 24. … with strong cross selling … Gathered during 4Q10Flexible Deposit € 685.6 millionPlatinum Deposit € 1,051.2 million18 months deposit € 416.0 millionCross selling• Mass market 4.7 products per client• Personal banking 7.6 products per clientSignificant effort in customer retention following thedeposit campaigns 24
  25. 25. … generating a positive commercial gap quarter after quarter … Commercial gap Euros in million 3,000 2010:€5,895m* 2,000 1,000 0 -1,000 -2,000 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 * Including €204m from the commercial GAP generated by Banco Guipuzcoano in December Accumulated commercial gap Funding evolution evolution Euros in million Euros in billion 12.7 35,000 10,000 Mutual Funds (rhs) 11.8 9.6 30,000 8.1 7,500 7.4 7.6 6.8 25,000 Wholesale funding 5.1 5.8 5,000 3.3 20,000 Fix-term deposits 1.7 1.2 1.3 2,500 15,000 Sight deposits -0.5 10,000 03Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q09 2Q09 3Q09 4Q09 1 0 2Q1 3Q1 4Q1 Q1 0 0 0 25
  26. 26. … reflected in the depositsmarket share …Deposits market share evolutionIn % 3.32%1 2.88% 2.83% 2.77% 2.74% 2.79% 2.78% 2.78% 2.79% 2.94% 2.70% 2.73% 2.69% 2.59% 2.47% 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10Deposit market share of other resident sectors1 Including Banco Guipuzcoano 26
  27. 27. … and having an impact in theloan to deposits ratioLoan to deposit ratio evolution* Wholesale funding / Total assetsIn % In % 35% 205% 179% 21% 170% 148% 2007 2008 2009 2010 2007 2010 * Repo transactions not included (neither in loans nor in deposits) 27
  28. 28. In a demanding environment we concluded2010 with a comfortable liquidity position…Liquidity position 2009 Euros in million 5,940Commercial GAP BS change 5,691Real estate portfolio change -596Issues maturity -3,012New issues 2,832Net short term issues change -3,473Increase of available ECB eligible assets 1,107B. Guipuzcoano liquidity contribution 1,223Other 857Liquidity position 2010 10,570We continue to generate positive commercial gapWe issued €2.832m in the wholesale markets in 2010 28
  29. 29. … which is shown in the zerobalance with the ECB at year-end Primary liquidity line Euros in million12,000 Liquidity position*10,000 8,000 6,000 4,000 ECB facility 2,000 0 5 6 6 6 6 7 7 7 7 8 8 8 8 9 9 9 9 0 0 0 0 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 01 01 01 01 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 c ar n p c ar n p c ar n p c ar n p c ar n p c De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De *Liquidity position = Treasury + liquid assets (ECB eligible) Liquid assets Dec-2010 Liquid assets (nominal amount) 12,675 Liquid assets (Market value including ECB haircut) 10,386 Euros in million 29
  30. 30. BS has a balanced fundingstructure …Funding structure Wholesale market breakdownIn percentage In percentage Client Repos 7.94% Preference Commercial Securitization Paper 1.03% shares 9.41% 0.79% Preferred ECP 10.40% Shares 0.97% Wholesale Subordinated CoveredDeposits 26.44% debt 5.97% bonds63.61% 58.34% Senior debt 15.09%Wholesale funding cost evolution Issuing capacityIn percentage Euros in million Wholesale funding cost2.50% 1.83% 2.01% CH issuing capacity 2,638 1.58% 1.48% 1.28% 1.48% CT issuing capacity 842 Euribor 3m 1.01% State backed1.10% 0.89% 0.75% 0.70% 0.63% 0.76% guarantees available 5,601 *2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 * BS has not used the State guarantee 30 30
  31. 31. … with a comfortable maturity calendar Wholesale funding maturity calendar Short term funding Including Banco Guipuzcoano. Euros in million Euros in million and percentage 1,875 149% 1,609 1,6002,000 1,500 1,500 1,462 1500 100% 1,289 1,1371,500 1,000 56% 78% 75% 9001,000 480 300 250 200 500 170 100 4,914 4,688 2,880 80 63 50 2,307 1,442 13 0 3Q13 0 0 0 3Q14 0 1Q15 0 3Q15 0 0 3Q16 0 0 1Q18 0 0 1Q11 3Q11 1Q12 3Q12 1Q13 1Q14 1Q16 1Q17 3Q17 3Q18 4Q09 1Q10 2Q10 3Q10 4Q10 Outstanding amount commercia Matured paper + ECP (excl. BG) Maturity by product type Euros in million % renewal 2011 2012 2013 >2013 BS BG BS BG BS BG BS BG Covered bonds (CH) 1,800 1,739 1,580 7,220 500 Public sector covered bonds (CT) Senior debt 1,047 400 1,732 50 25 Asset backed guarantees 400 Subordinated, preference and convertible bonds 1,371 125 Other mid- and long-term financial instruments 230 92 31
  32. 32. 4. Risk management 32
  33. 33. NPL ratio below the systemaverage … Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10BS NPL ratio 2.82% 3.19% 3.47% 3.73% 4.09% 4.38% 4.72% 5.01% 1System NPL ratio 4.27% 4.60% 4.86% 5.08% 5.33% 5.35% 5.49% 5.68%1 November data9%8%7%6%5%4%3%2%1% 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 System NPL ratio BS NPL ratio 33
  34. 34. … with new entries in adownward trendEntries and recoveriesEuros in million 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Entries 806.7 788.3 709.0 671.8 670.9 647.7 650.7 623.5 Other provisioned loans entries 0.0 35.4 41.0 63.9 349.7 256.4 382.0 362.1 Recoveries -480.1 -532.9 -531.9 -489.4 -578.9 -591.6 -617.3 -728.3 Write-offs -1.7 -25.4 -9.2 -31.2 -183.3 -93.1 -201.3 -30.5 Quarterly change on NPLs 324.8 265.4 208.9 215.1 258.4 219.4 214.1 226.8 NPLs from B. Guipuzcoano 442.8 Total 669.6 34
  35. 35. Credit exposure and NPLsaccording by purpose Substan- NPL Total Normal NPL dard ratio* Companies 52,999 46,810 2,928 3,260 5.53% Real Estate development and/or RE construction purposes 10,170 6,451 2,174 1,543 15.31% Construction purposes, not related to real estate development 928 783 1 145 7.16% Other purposes 41,901 39,576 753 1,572 3.34% Large corporates 14,706 14,091 292 323 1.77% SME, small retailers and self-employed 27,195 25,485 461 1,249 4.36% Individuals 18,751 18,087 1 661 3.49% 1st mortgage guarantee assets 16,396 15,888 1 507 3.09% Other real guarantees assets 474 468 0 5 0.99% Other 1,881 1,732 0 149 7.21% Subtotal gross loans to customers 71,750 64,897 2,929 3,921 5.01% Other gross loans to customers 1 1,307 22 Total gross loans to customers 73,057 Euros in million*Includes off-balance sheet items1Includes caption 4: public entities; caption 8:other assets and deferral adjustments. 35
  36. 36. Breakdown of credit exposure for real estatedevelopment and/or RE construction purposesTotal 10,170No mortgage guarantee 642Mortgage guarantee 9,528 Finished buildings 3,765 Housing 3,633 Other 132 Buildings under development 1,248 Housing 1,133 Other 115 Land 3,043 Developed land 2,741 Rest of land 302 Financing real estate developers with mortgage guarantees 1,472 36
  37. 37. The coverage of real estate assetsincreases to 31%Coverage evolution Transactions by typeEuros in million Euros in million 2009 2010 Gross portfolio 1,786 2,880 498.0 Total fund 248 888 414.3 138.3 178.5 Net portfolio 1,538 1,992 92.7 -12.3 -89.7 -29.8 -96.1 Coverage 14% 31% 1T10 2T10 3T10 4T10 Repossessions Banco Guipuzcoano SalesFocus on building up a real estate coverage bufferwhich currently stands at 31% 37
  38. 38. The weight of the real estate portfolio is below the sector average Real estate over total loans Coverage of real estate assets In % In %6.00% 5,06%5.00% 3,93%4.00% 2,93%3.00% 31%2.00% 2,77% 26%1.00%0.00% Peer Group Banc Sabadell 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Sav. banks System BS Banks Source: Bank of Spain and annual reports 38
  39. 39. Real estate portfolio breakdownBreakdown of real estate assets by origin: asset swaps, mortgagerepossessions and others Euros in million Gross Net book value Coverage (in %) valueReal estate assets from financing addressed toconstruction and RE development companies 2.571 774 30% 1.797 Finished buildings 594 126 21% 468 Housing 379 90 24% 289 Other 215 36 17% 179 Buildings in construction 244 61 25% 183 Housing 106 34 32% 72 Other 138 27 20% 111 Land 1.733 587 34% 1.146 Land under development 695 219 32% 476 Building land 1.038 368 35% 670 Other 0 0 - -Real estate assets from mortgages for house acquisition 293 104 35% 189Other repossessed real estate assets 16 10 64% 6Real estate portfolio 2.880 888 31% 1.992 39
  40. 40. Coverage breakdown as per Bank ofSpain’s Financial Stability ReportTotal lendingEuros in million and percentage Amount % Fund CoverageGross loans to customers ex repos 73,058Of which: NPLs 4,074 5.6% 1,370 33.6% Substandard 3,028 4.1% 511 16.9%Acquired and repossessed RE assets 2,880 3.9% 888 30.8%Write-offs 680 0.9% 680 100.0%Potentially problematic exposure 10,662 14.6% 3,449 32.3% Pro memoria: % Coverage including generic 10,662 424 36.3% provisionGlobal coverage ratio 4,074 2,305 56.6% 40
  41. 41. 5. Banco Guipuzcoanointegration 41
  42. 42. Goodwill resulting from the incorporation of Banco Guipuzcoano Capital generation Goodwill calculation Euros in million Euros in million 288 626 326 238 226 12 -12 Guipuzcoano Shares Convertible Initial Initial difference Provisions from Final Goodwill Equity exchanged bonds difference consolidation exchanged (capital generation)As a result of the consolidation of Banco Guipuzcoano gross provisionsof €340m (credit, real estate and others) have been recognized. Theimpact net of taxes is €238m. 42
  43. 43. BG’s integration will be done via “BigBang” in April 2010 2011 2012 16-25/11 Enero 9/4 New reporting lines “Big Bang” IT Streamlining ofClosing presented integration branches• Implementation of the • Integration IT/OPS “squeeze out” • Network streamlining and• Corporate governance commercial approach rest of adjustments in BG areas• Change of Control • New brand implementation• Commercial coordination • Merger of commercial BG/BS management and risk control• Boosting commercial platform at BG • Corporate center plan• Liquidity management • Business integration (real estate, integration insurance, asset management) 43
  44. 44. Restructuring costs amount to€ 113 million 2010 2011e 2012e TOTALEarly retirements 12 54 9 75IT costs & others 34 4 38 TOTAL 12 88 13 113Euros in million 44
  45. 45. Cost synergies breakdownSynergies breakdownEuros in million Achievement by 2011E 2012EPersonnel 19 26Administrative 24 29expenses 43 5579% of synergies will be achieved by 2011; paybackin 24 months 45
  46. 46. 6. CREA (2011-2013)A plan based in 2010commercial success 46
  47. 47. CREA Plan (2011-2013) Crecimiento Growth Rentabilidad Profitability Eficiencia Efficiency Ambición Ambition 47
  48. 48. CREA Plan (2011-2013) 1 Domestic market 2 International business Sabadell • Diversification balanceSolvency ““Profitable growth” Liquidy sheet / risks • Development of Project New clients Net interest Cost and America and market margin share gains management efficiency + • Improvement of positioning of international business Perfect integration of Banco Guipuzcoano 48
  49. 49. Plan CREA (2011-2013)ObjectivesIncreasing individual customers by 1,000,000 and companies by 160,000Productivity improvement of 33%, increasing customers per branch to 2,400Increasing market share to 4.9% in individuals and 24% in companiesAnnual growth of 5% in loans and 10% in customer funds 49
  50. 50. Investor Day Invitation Banco Sabadell cordially invites you to attend its Investor Day on February 16th. The Management Team will present Banco Sabadells strategic business plan 2011-2013, Plan CREA.Banco Sabadell 3rd WHERE: London WHEN: 16th February 2011 SPEAKERS Josep Oliu, Chairman and CEO Jaume Guardiola, Consejero Delegado London, 16th February 2011 Tomás Varela, CFO Agenda: 8.00 a.m. – 8.15 a.m. Registration 8.15 a.m. – 9.45 a.m. Management presentations 9.45 a.m. – 10.30 a.m. Q&A 10.30 a.m. – 11.00 a.m. Closing remarks Venue: Clothworkers Hall (map and address of the venue attached) Please confirm your attendance to the Banco Sabadell Investor Relations department before February 1st. Banco Sabadell Investor Relations. C/Sena 12, Sant Cugat del Vallés, Barcelona (Spain). investorrelations@bancsabadell.com ℡ + (34) 93 728 1200 50
  51. 51. BancoGuipuzcoano 51

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