The document provides an overview of Banco Popular Español's 1st half 2012 results presentation. Key highlights include achieving best-in-class recurrent revenues and pre-provision profit. Efficiency ratios improved further to 38.5% in 1H12. Strong provisioning increased coverage ratios to 56% while EBA core tier 1 capital ratio reached 10.3%, beating targets. Business plan was approved by the board of directors positioning the bank well for upcoming stress tests.
Highlights of the fourth quarter of 2010. Net sales amounted to SEK 27,556m (28,215) and income for the period was SEK 677m (664), or SEK 2.38 (2.34) per share. Net sales increased by 1.6% in comparable currencies.
Map Intelligence is a breakthrough product in the world of geographic information systems, enabling the development of dynamic, browser-based mapping applications without the need for programming skills. For more information surf to www.integeo.com or www.localyse.nl
Presentatie [in Dutch] over Location Intelligence: de integratie tussen Business Intelligence en Geografische Informatie Systemen. Ga voor meer informatie naar www.localyse.nl
Highlights of the fourth quarter of 2010. Net sales amounted to SEK 27,556m (28,215) and income for the period was SEK 677m (664), or SEK 2.38 (2.34) per share. Net sales increased by 1.6% in comparable currencies.
Map Intelligence is a breakthrough product in the world of geographic information systems, enabling the development of dynamic, browser-based mapping applications without the need for programming skills. For more information surf to www.integeo.com or www.localyse.nl
Presentatie [in Dutch] over Location Intelligence: de integratie tussen Business Intelligence en Geografische Informatie Systemen. Ga voor meer informatie naar www.localyse.nl
The SGS Group posted a strong first semester performance with revenue growth of 15.1% over prior year to CHF 2.7 billion (constant currency basis), reflecting both organic revenue growth of 11.1% and the integration of twenty four recently acquired companies contributing an additional 4.0% in revenues.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
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You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
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What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
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A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
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how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
1. 1st Half 2012 Results Presentation
Madrid, July 27th 2012
2. Disclaimer
This presentation has been prepared by Banco Popular Español solely for purposes of
information. It may contain estimates and forecasts with respect to the future development
of the business and to the financial results of the Banco Popular Group, which stem from the
expectations of the Banco Popular Group and which, by their very nature, are exposed to
factors, risks and circumstances that could affect the financial results in such a way that they
might not coincide with such estimates and forecasts. These factors include, but are not
restricted to, (i) changes in interest rates, exchange rates or any other financial variables,
both on the domestic as well as on the international securities markets, (ii) the economic,
political, social or regulatory situation, and (iii) competitive pressures. In the event that such
factors or other similar factors were to cause the financial results to differ from the estimates
and forecasts contained in this presentation, or were to bring about changes in the strategy
of the Banco Popular Group, Banco Popular does not undertake to publicly revise the content
of this presentation.
This presentation contains summarised information and may contain unaudited information.
In no case shall its content constitute an offer, invitation or recommendation to subscribe or
acquire any security whatsoever, nor is it intended to serve as a basis for any contract or
commitment whatsoever.
2
3. Agenda
1. 1H12 Results and operating performance
1.1 P&L main drivers
1.2 Risk management
1.3 Liquidity & funding
2. Business Plan
3. Solvency, EBA capital and Stress Tests
4. Conclusions and outlook – Q&A
3
4. A best-in-class first half of the year, beating targets in a very demanding
scenario
Key highlights 1H12
Best-in-class • Net interest income +37% YoY. Pre-provision profit up to €1.2Bn,
recurrent revenues (+37% YoY) in 1H12
• Efficiency ratio improves even further: 38.5% in 1H12
Efficiency and
• Synergies of the Pastor integration above initial expectations
Pastor integration
(already reached 70% of the 2012 target)
Strong provisioning • NPAs coverage to 56% (+11pp YTD)
reinforcement.
• Core Tier 1 EBA: 10.3%
EBA targets already
beaten. • Further improvement of the commercial gap by €2.2 Bn YTD. Loan to
Liquidity on track deposit ratio at 130%
Business Plan
approved by BoS. • Business Plan approved by BoS. 2H12 results, ahead of plan
Extraordinary • Our solid capital base, our exceptional capacity to generate revenues
position to face the and the clean-up to date, key to face Stress Test scenarios
Stress Tests
4
5. Financial Highlights 1H12
Change YoY Change
(€, million) 1H12 1H11
(€m) YoY (%)
Net interest income 1,436 1,045 +391 +37.4%
Fees and commissions 410 350 +59 +16.9%
Trading and other recurrent income 180 126 +54 +42.9%
Gross operating income 2,026 1,521 +505 +33.2%
Total Operating Costs -847 -663 -184 +27.9%
Pre-provisioning profit 1,178 858 320 +37.3%
Provisions for loans and investments (ordinary & -739 -578
accelerated) -161 +27.9%
Net of Provisions for real estate (ordinary & -195 -18
accelerated) and extraordinary gains -175 -
PBT 244 261 -17 -6.5%
Net profit 176 305 -129 -42.3%
Non-performing loans ratio 6.98% 5.58% + 140 b.p.
Efficiency ratio 38.52 % 40.14 % -162 b.p.
Loans to deposits ratio 130 % 135 % -5 p.b.
Core Capital EBA 10.3% 7.6% 2.7 p.p.
5
Note: ‘Trading and other income’ includes FGD fees (€ 64Mn increase YoY). Includes Pastor figures since February 17th 2012
6. As expected, NII has grown again boosting a significant increase YoY of
37%. 7% QoQ. A sustained growth
Net Interest Income evolution
NII over ATA (%) (€, million) (€, million)
1.62 1.66 1.59 1.63 1.95 1.94
+7.2% +37.4%
743
693
1,436
723
663
1,045
515 530 515 527
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Quarterly 1H11 1H12
average
2012e (*)
Extraordinary margin
6
(*) Includes Banco Pastor since February 17th 2012. Quarterly average according to the Business Plan approved by BoS
7. The improvement of the NII, coupled with the sound evolution of fees
and trading, raise the total revenues to record levels
Basic revenues Total revenues evolution 1H12
(€, million) +32.3% (€, million)
1,845
1,395 410
350
+33.2%
1,436
1,045
2,026
1,521
1H11 1H12
NII Fees
Trading & other
(€, million) +43.7%
181
71
126 1H11 1H12
104 189
37
-15
-79
1H11 1H12
Trading Others Spanish insurance Fund fee (FGD)
7
Note: Includes Banco Pastor since February 17th 2012
8. This remarkable NIM expansion is based on our already demonstrated
capacity to manage spreads. We reinforced our leadership in margins vs.
our peer group
Loans Yields: frontbook vs. stock Margins evolution
(%) 6.22 (%)
5.72
5.28
2.51 2.52
4.78 4.84 2.25 2.29
4.60 4.63 2.21 2.19 2.18
4.41
4.24 4.29
4.06
3.89
1.95 1.94
1.75 1.66
1.62 1.59 1.63
4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Stock Frontbook NIM Customer spread
Customer spread comparison NIM comparison
(%) (%)
2.52
2.37 1.94
2.15
1.80 1.54
1.43 1.39
1.30
1.04
Bank 1 Bank 2 Bank 3 Bank 4 Bank 1 Bank 2 Bank 3 Bank 4
8
Banks: Banesto, Sabadell, Caixabank y Bankinter Banks: Banesto, Sabadell, Caixabank y Bankinter
9. The strong commercial effort is paying off
Government fund for payments to suppliers Customer base and market share evolution
• €2,850 Mn of transactions channelled • 96,884 new customers (*)
• 33,762 new SMES (*)
• €2,135 Mn of loans financed
• Maintaining market shares: +10 bps. QoQ
• 623,000 bills paid in loans (6.5%) and stable in deposits
(6.0%)
• 10.34% market share *Note: Popular standalone, HoH variations
ICO (Public credit lines) market share July-12
2.8x natural market
17.4% share
12.2% 12.1% 11.7% 11.0%
International business
6.3%
• +9.39% revenues vs. dec 11
Banco 1 Banco 2 Banco 3 Banco 4 Banco 5
• New commercial offices: Istanbul, Dubai,
Warsaw and Sao Paulo
Source: ICO July 2012. Banks: Santander, Bankia, BBVA, Sabadell and Caixabank 9
10. The integration of Pastor continue evolving above expectations as both
parties share the same values. Synergies on track and the commercial
activity of Pastor remains in very good shape
Main milestones in the quarter Deposit market share
• Synergies confirmation. Achieving goals at a Market share: 17,3%
good pace QoQ evolution: +30 bps.
• Legal merger completed (July 5th) 17.3%
17.4%
• Perfect commercial fit. Franchise improving
in Galicia 16.6%
18.3%
Annual synergies (€Mn)
70% of the 1st year 155 163
synergies already 147
133
achieved
74 81
57
2012E 2013E 2014E
Initial synergies Updated synergies
Already achieved in 1H12
10
11. Costs increased due to the integration of Pastor, however the pace of
synergies execution (staff reduction and commercial network) will allow
to reduce costs in coming quarters
Total costs Staff evolution-FTEs
(€, million) -460
+184 18,059 17,599
14,111 14,062
847
132
30
Jun-11 dec-11 Mar-12 jun-12
663 685 Branches evolution
-51
2,765 2,714
2,222 2,203
1H11 1H12
Popular Extraordinary Pastor
Jun-11 dec-11 Mar-12 jun-12
11
12. Our recurrent revenues have permited us to continue improving our cost
to income ratio, which is already the industry’s benchmark
Quarterly efficiency ratio Efficiency ratio vs. Peers 2Q12
European average 61.9%
45.3%
43.1%
42.0%
45.4% 45.7% 46.0% 48.2%
43.8%
39.1% 38.0%
41.0%
38.0%
Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Bank 7
2Q11 3Q11 4Q11 1Q12 2Q12
Banks: BBVA España, Caixabank, Santander España, Banesto, Sabadell &
Bankinter
Pre-provision margin over total assets
Pre-provision profit comparison 2Q12
(€, million) +€320m 1.67% Best-in-class!!
1.21%
0.84%
1,178
858
1H11 1H12 POP Spanish Banks European Banks
Source: Last available quarterly reports (Sabadell, Banesto, 12
Note: Includes Banco Pastor since February 17th 2012 Caixabank, Bankinter) and KBW
13. The strength of PPP and solvency, has allowed us to carry out an
extremely strong provisioning effort in the first half of the year: 3% of
our loans!
Pre-provision profit Provision for loans and investments Real Estate provisions
(€, million) (€, million) (€, million)
+€320m
+€169m
1,178 -€314m
739
46
858 71
578 509
141
881
195
608
-81 -124
1H11 1H12 -9 1H11 1H12
-6 -75 Annual
-135 write-offs
recovery rate
1H11 1H12 of 4.7%
Specific (ordinary& RDL) Extraordinary provisi
Write-offs Investments
Pensions & other Generic
In addition we have booked €2.4 Bn of FVA gross (Pastor integration) leading to an improvement of our
coverage ratios
13
Note: Includes Banco Pastor since February 17th 2012
14. Despite this demanding provisioning, we have posted €244 Mn of Profit
before taxes and €176 Mn Net Attributable Profit in the first half of 2012
Profit before taxes Net Profit
(€, millon) (€, millon)
-6.5% -42.5%
261 305
244
176
1H11 1H12 1H11 1H12
Note: Includes Banco Pastor since February 17th 2012. In 1H11 we registered a significant tax credit which makes Net Profit figures not
comparable 14
15. Agenda
1. 1H12 Results and operating performance
1.1 P&L main drivers
1.2 Risk management
1.3 Liquidity & funding
2. Business Plan
3. Solvency, EBA capital and Stress Tests
4. Conclusions and outlook – Q&A
15
16. Net entries increase as a result of the weak macro environment, the
Pastor consolidation and a higher transfer from substandard to NPLs. The
NPL ratio, however, remains well below the industry
Evolution of net entries of NPLs NPL ratio evolution vs. sector
(€, million)
Recovery rate (%) 8.95%
51.4 49.4 48.4
1,075 Mainly 6.98%
developers
already
623 420 covered by
570 the RDLs
58 97
167 1 % 1
.81 .97%
1.52%
565 558 1.30%
403 11
.1 %
0.67%
0.23% 0.38% 0.28% 0.31 0.55%
%
4Q11 1Q12 2Q12 Dec- M ar- Jun- Sep- Dec- M ar- Jun-1 Sep- Dec-1 M ar- Jun-1
1 1 2
09 10 10 10 10 11 11 12
Popular ex substandard Pastor contribution
ex substandard
Popular Sector
Transfer from substandard to NPLs
Gap NPL ratio sector vs Popular (*)
(*) Average banks, saving banks and credit unions as of May 2012 (last available data)
16
17. The massive provisioning effort leads to a remarkable reinforcement of
our NPAs coverage
NPLs Coverage NPLs + Write offs Coverage
+10p.p.
+15p.p.
73% with
50% mortgage 66%
collateral 56%
35%
Dec-11 Jun-12 Dec-11 Jun-12
RE Assets Coverage NPAs Coverage (1)
+8p.p. +11p.p.
56%
40% 45%
32%
Dec-11 jun-12 Dec-11 Jun-12
(1) NPAs: NPLs + RE assets + Written-offs
N.B: Coverage without considering the value of collateral
17
18. Agenda
1. 1H12 Results and operating performance
1.1 P&L main drivers
1.2 Risk management
1.3 Liquidity & funding
2. Business Plan
3. Solvency, EBA capital and Stress Tests
4. Conclusions and outlook – Q&A
18
19. In 4 years we have reduced our wholesale dependence by €19 Bn
without deleveraging
Loan/Deposits Ratio (%) Commercial gap evolution
(€, -44pp
million) (€, millones)
-3pp
174%
149% 135%
136% 133% 130%
€-19.375 Mn
44,613 €-2.251 Mn
6,483
2008 2009 2010 2011 1Q12 27,489
29,086
Popular standalone Popular + Pastor 25,238
23,512 4,203
Net credit ex-repos evolution 38,130
23,286
+0.8%
113,434
21,215 91,184 91,225 92,663
2008 2009 2010 2011 1Q12
Pastor proforma
91,350
2008 2009 2010 2011 1Q12
Pastor proforma 19
20. Retail funds doing well in 1H12. After a spectacular start of the year, in
2Q12 we have managed tactically our margins
Retail Funds ex-repos Main trends of retail funds during 2Q12
(€, million)
• Slight increase in retail deposits
• More volatility in deposits from
76,790 multinational companies and institutions
61,285 13,714 • Tactical margin management after the
strong start of the year
Frontbook costs
63,076
(*) Pastor en 2009 pro-forma a efectos comparativos
%
3.24 3.28
dec-11 jun-12 3.02
Pastor 2.72
3Q11 4Q11 1Q12 2Q12
Frontbook costs (time deposits + commercial paper)
20
21. We enjoy a solid liquidity position
Popular + Pastor medium and long term maturities and the 2nd line of liquidity
(€, million)
7,049 Covered bonds
Covered re-issuable at ECB
bonds 3,053
2,878
1,821
2012 2013 2014 >2014
10,343
1,679
67 1,277 50 285
Senior debt
50
17 285
1,227 50
50
2012 2013 2014 >2014 2nd line of
liquidity (*)
EMTN GGB
(*) After haircuts. Includes treasury accounts and financial assets at market prices
21
21
22. Agenda
1. 1H12 Results and operating performance
1.1 P&L main drivers
1.2 Risk management
1.3 Liquidity & funding
2. Business Plan
3. Solvency, EBA capital and Stress Tests
4. Conclusions and outlook – Q&A
22
23. Main highlights from the new business plan approved in June 2012 by
Bank of Spain
In 2012-13 Banco Popular will cover all the provisions requirements of the two
1 new Royal Decrees to cover the Real Estate risks: €3.2 Bn of specific provisions
and €4.4 Bn of generic provisions
Popular will carry out an asset divestment plan that will derive in lower capital
2 consumption and significant capital gains
3 Popular incorporates provisions of €11 Bn in its plans (RE and others, included
Popular incorpora en susjust a partial use inpor encima de nuestras expectativas
generics that we expect planes dotaciones 2012 and 2013)
Popular expects, in spite of the massive provisions, to generate profits in 2012
4 and 2013, and significantly higher in 2014 as a consequence of the accelerated
and generic provisions
5 We maintain our €700 Mn capital increase announced on the back of the Pastor
acquisition and postponed. It will be carried out before June 2013
23
23
24. Business Plan update. Pre-Provision Profit performing better than
expected
2012-14 P&L forecast update
(€ billion except Net Income) 1H12 1H12 x 2 2012E 2013E 2014E(*)
Net interest income 1.4 2.8 2.8 2.8 2.9
Total revenues 2.0 4.0 4.0 3.9 4.0
Pre-provision profit 1.2 2.4 2.3 2.3 2.4
Net Income (€ Million) 176 352 325-360 580-654 1,400
RDL pending P&L provisions (generic & specific) Identified capital gains
(€, billion)
4,0 • Joint venture credit cards and
consumer credit businesses
• Branch network sales
Total
• Sale of Life & Pensions Insurance
c.€2.0-2.3Bn
business in Portugal
• Non accelerated asset sales and
others
2H12 - 3Q13
Note: Internal update of the Business Plan after 2Q12 closing 24
(*) 2014 includes €0.8Bn of fresh countercyclical provisions
25. Agenda
1. 1H12 Results and operating performance
1.1 P&L main drivers
1.2 Risk management
1.3 Liquidity & funding
2. Business Plan
3. Solvency, EBA capital and Stress Tests
4. Conclusions and outlook – Q&A
25
26. We complied with EBA requirements. Indeed, still without executing the
€700M capital increase announced in the Pastor merger process we can
count on an important capital buffer
Quaterly reconciliation of Core Capital EBA (€, billion)
CT1 EBA Ratio % 11% proforma
10.3% with €700M
Pastor
8.7% €0.5 Bn €0.1 Bn €10.0 Bn
€0.3 Bn €0.1 Bn €0.1 Bn
€0.6 Bn
€8.3 Bn
Core Capital MCN 2009 New MCN(*) Profit retained Lower treasury Clousure Other Core Capital
1Q12 and others stock expected loss 2Q12
gap
RWAs 95.0 97.2
(*) Including the exchange of wholesale preferent shares and new MCN private issuance
Capital excess CT1 EBA under different scenarios
(€, billion) €4.2 Bn
Gross €6 Bn buffer to the
€1.3 Bn stress test capital ratios
€0.4 Bn
CT1 EBA 9% + CT1 EBA 9% CT1 EBA 6%
sovereign buffer
26
27. Regarding the forthcoming stress tests, we do not expect additional
capital needs to the ones already included in our business plan. We have
a very strong starting position, bearing in mind all the capital already put
in place together with the strengths of our superior business model
Starting position of Banco Popular
1 Executed and set off capital measures 2 Better credit quality than the industry
• Measures implemented since December (net of €2.4 Bn NPL ratio (Dec 2011) Sector POP
FVA due to the merger of Pastor): + €2bn RE developer 28.9% 20.4%
• RWAs reduction achieved (Pastor proforma): - €10Bn Retail mortgages 3.3% 4.6% with
collaterals
• Improvement of the pre-provision profit: +37% YoY 1H12 Corporates 4.2% 3.0% 64%
SMEs 7.7% 6.3%
• Capital gains: +c. €2Bn estimated before June 2013 with
Public works 9.8% 8.6% collaterals
• Postponed Pastor capital increase: €0.7Bn before June 74%
2013 Other private individuals 5.7% 3.3%
3 Best in-class in recurrent earnings, provisions already made and capital strength
Provisions over credit risk
Efficiency ratio Dec 2011 2008-2011 (*) Core Tier 1 EBA (**)
60% 10%
9,4% 10,3%
44%
38% as of 5%
June 2012
Sector POP Sector POP Sector POP
Note: Figures for Popular and Pastor as of Dec 2011. 27
(*) Credit risk = credits + real estate. Valuation adjustments of the Pastor acquisition are included.
(**) Core capital figures for the sector based on Oliver Wyman estimates as of Dec 2011 and for Popular as of Jun 2012.
28. To give an idea of the capital strength and in spite of the provisioning
clean-up we will have a solid capital base and an extremely good position
to face stress tests
Core Capital EBA estimations
10.3% 10.8% 11.6% 12.8%
CT1 EBA ratio %
11.4 Bn €
10.0 Bn€ 9.8 Bn€ 10.4 Bn€
2Q12 4Q12e 4Q13e 4Q14e Capital excess above
6% CT1 stressed
RWAs (Bn €) 97.2 90.5 89.4 89.4 threshold:
€8.7Bn gross buffer to
build-up provisions in
Stock of provisions (Bn €) 9.3 13.7 15.6 16.6 a stress test scenario
Capacity to face €24.8 Bn of provisions by the end of 2014, compliant with the minimum
capital requirements under a stress scenario (6%)
Nota: Figures for Popular and Pastor 28
29. Agenda
1. 1H12 Results and operating performance
1.1 P&L main drivers
1.2 Risk management
1.3 Liquidity & funding
2. Business Plan
3. Solvency, EBA capital and Stress Tests
4. Conclusions and outlook – Q&A
29
30. A best-in-class first half of the year, beating targets in a very demanding
scenario
Key highlights 1H12
Best-in-class • Net interest income +37% YoY. Pre-provision profit up to €1,2Bn,
recurrent revenues (+37% YoY) in 1H12
• Efficiency ratio improves even further: 38.5% in 1H12
Efficiency and
• Synergies of the Pastor integration above initial expectations
Pastor integration
(already reached 70% of the 2012 target)
Strong provisioning • NPAs coverage to 56% (+11pp YTD)
reinforcement.
• Core Tier 1 EBA: 10.3%
EBA targets already
beaten. • Further improvement of the commercial gap by €2.2 Bn YTD. Loan to
Liquidity on track deposit ratio at 130%
Business Plan
approved by BoS. • Business Plan approved by BoS. 2H12 results, ahead of plan
Extraordinary • Our solid capital base, our exceptional capacity to generate revenues
position to face the and the clean-up to date, key to face Stress Test scenarios
Stress Tests
30
31. Outlook 2012/2013/2014
Challenging • The macro, micro and regulatory environment is still “very very”
environment challenging
• Solid earnings and synergies generation (average pre-provision profit
Operating
€2.3Bn p.a. together with assets disposals) will allow us to face an
resiliencies and
extraordinary clean-up, while remaining profitable. By 2014
pre-provision profit
at >€2 Bn exceptional net profits are expected due to the accelerated clean-up
booked in 2012 and 2013
Strong coverage • Set aside provisions for NPLs and real estate, will allow us to divest
increase those assets gradually & profitably
• Capital: we do not expect higher capital increases apart from the
Excellent
€700m postponed Pastor issue
competitive
position • As a reminder, capital, cost and income efficiency, together with a
sound liquidity position, are crucial to manage any stress situation
31
34. Credit Exposure
(€, million) 1S12
Lending to construction & RE purposes 21,436
Public works 2,116
Corporates 14,243
SMEs 29,364
Individuals with mortgage collateral 28,710
Individuals with other collaterals 171
Individuals rest 3,541
Total Spain 99,582
Rest (repos, public administration, non Spain) 20,340
Total gross loans 119,922
34
35. BoS Transparency exercise: Lending to construction and RE purposes in
Spain remains our most affected sector
Lending to construction and RE: breakdown by type Total exposure to RE lending
(€, million) % of total
1.76% 23% 13% 64%
21.35% 21,436 5,017
2,724
13,695
14.95%
12.78%
8.19%
Buildings 2Q12 NPLs Substandard Exposure
49.2% (watch list)
40.96%
Still performing!
Coverage of RE lending
Personal guarantee
4Q11
Finished buildings (€, million) Pro-forma 2Q12
Specific + Generic 1,525 3,160
Buildings under construction
Write-offs 978 1,123
Developed land
Total 2,503 4,283
Other land
NPLs & Substandard
General Corporate purposes with mortgage coverage 30% 48%
35
36. BoS Transparency exercise: Real Estate assets held in Spain. During
these 6 months, we have increased strongly our coverage
Foreclosed assets: detail & coverage Foreclosed assets: split by origin
4Q11 Pro-
11%
(€, million) forma 2Q12
9%
Foreclosed assets (net amount) 5,685 5,623
10% 70%
Capital instruments (net amount) 416 340
Provisions 2,883 3,912
Coverage 32% 40%
Foreclosed assets from lending to construction & RE purposes
Foreclosed assets from retail mortgages
Foreclosed assets: rest
Capital instruments
Foreclosed assets: split by type of collateral
11%
9%
34%
38%
8%
Finished buildings Buildings under construction
Land Rest
Capital instruments
36