contents · business credits production van breda car finance marc wijnants it operations 6 . 2...
TRANSCRIPT
Contents
History & Structure
Sustainable growth
Risk profile
Strategy & succes factors
Prepared for the future
2
1
2
3
4
5
1 History &
structure
3
Shareholders
4
2005 1998
2011 2000 1989 1930
5
An entrepreneurial history
Foundation of
the bank by
Jos Van Breda
Foundation of
Finaxis
Acquisition
ABK bank
Strategic change: 'For
family businesses and
liberal professions only'
Start-up
Brussels and
Wallonië
Strategic focus
holistic asset
management
2018
Launch of
Bank de Kremer
1972
Management
Buy Out
Responsibilities Executive Committee
Dirk Wouters
President
Compliance and Legal Advice
Internal audit
Information security
Marketing and communication
Human Relations
Risk management
Van Breda Advisory
Vic Pourbaix
Client Relations
Véronique Léonard
ALM & treasury
Internal and external reporting
Business Credits Production
Van Breda Car Finance
Marc Wijnants
IT
Operations
6
2 Sustainable
growth
7
3,5 4,1
4,7 5,0 5,6
6,4 7,1
7,7 8,7
9,7
10,8
12,1
13,4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Average growth
11,8%
866 906 935 878
948 1.014 1.052
1.105 1.142 1.218
1.286 1.327 1.348
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Financal assets Belgian households
(in bn euro)
Totaal invested
Bank J.Van Breda & C° (in bn euro)
Average growth
3,75%
Bank J.Van Breda & C° Assets under management Financial assets Belgian households
X 3,8 X 1,55
8
Solid sustainable growth Commercial volumes +10%
9
2014
3.6
2013
3.9
+7%
2016
+4%
4.7 4.5
2015 Q32018 2017
4.2
3.5
4.6
9.2
13.7
2017 2015 Q32018
3.8 3.7
6.2 5.3
4.0
7.2
2014 2013
10.0 9.0 9.8
+11% 14.6
+6%
4.8
12.4
8.2
11.1
4.2
2016
Assets under Management (In billion euro)
Loans (In billion euro)
* € 5.4 bn entrusted to Delen Private Bank for asset management in 2017
€ 0,9 bn investments funds managed by Delen Private Bank
Client deposits
Off-balance products*
Note: Totals not always equal to sum of parts due to roundings
9 months
9 months
Income growth despite low interest rate environment Stable NII, growing fee income
10
84.1
2014
32.0
82.1
2013
31.6
76.8
48.0
81.0
55.6
79.1
2016
+16%
2017
-2%
2015
44.7
Net Fee Income Net Interest Income
In E
UR
mill
ion
CAGR
+1%
CAGR
+15%
Benchmarking Revenues
64%
25%
11%
Sector
Interestincome
NetCommission
Other
Diversified Revenues
11
56%
39%
5%
Bank JVB
Interestincome
NetCommission*
Other
Disciplined cost management Forward-looking investments in commercial strengths (People + IT + Automation & Digitalisation)
* Significant increase in banking taxes from 2 million in 2013 to 8.4 million in 2017
12
471
465
459
466
471
2015
+5%
2017
+5%
83.6
2016
79.6 74.4 71.2
2014 2013
69.3
FTE Operating expenses
In E
UR
mill
ion
Solid financial performance
13
Profit based on strong underlying sales results and efficiency
+6%
2017
39.1
2016
37.7
2015
40.5
2014
35.5
2013
31.5
+5%
2017
141.4
2016
134.0
2015
133.9
2014
119.4
2013
117.7 Net Profit
(In million euro)
Income
Costs & C/I ratio
+5%
2017
83.6
59%
2016
79.6
59%
2015
74.4
56%
2014
71.2
60%
2013
69.3
59%
In E
UR
mill
ion
In
EU
R m
illio
n
3 Risk profile
14
Bank J.Van Breda & C° (Consolidated) Key Figures
15
Bank J.Van Breda & C° (Consolidated) Key Figures
16
2013 2014 2015 2016 2017
Staff 466 459 466 471 471
Net profit after taxes 32 36 41 38 39
Equity 448 475 502 518 539
Cost income ratio 59% 60% 56% 59% 59%
Return on average equity (ROE) 7% 8% 8% 7% 7%
Impairments on loans 0,04% 0,01% 0,01% 0,01% 0,04%
Core capital ratio (Tier 1) 13,70% 14,90% 14,50% 14,80% 14,20%(millions of Euros)
Healthy balance sheet
17
Loans fully funded by client deposits
€ 5.4bn
3%
14%
83%
Cash & Investment portfolio
Loans &
receivables
Total Assets
Other Debt instruments
Equity
Deposits
Total Liabilities
6%
84%
€ 5.4bn
10%
Situation as per 31/12/2017
Other; < 1%
Strong capital position Solid capital generation & buffer for sustainable growth
Strong capital adequacy,
especially in light of
the use of Standardised Approach
IFRS capital increased from € 518 million in 2016
to € 539 million in 2017
18
14.9%
14.2%
15.8%
2014
15.9%
2013
14.8%
2015 2016
14.9%
15.6% 16.8%
13.7% 14.5%
2017
Capital Ratio (in % RWA)
2.0%
2.5%
Regulatory
Minimum
(before pillar II
requirement)
10.5%
6.0% Tier 1 Capital
Tier 2 Capital*
Capital
Conservation
Buffer
Tier 2 %
CET1%
Strong leverage ratio One of the strongest in Europe
3.0%
8.9%
2017 Regulatory
Minimum
Basel III Monitoring
Report:
25%-75% quartile
from 4,4% to 7,5%
19
Solid liquidity & Conservative bond portfolio
High quality bondportfolio
20
39%
25%
16%
13%
8% Government Bonds (Aaa)
Government Bonds (Aa1)
Government Bonds (Aa2)
Government Bonds (Aa3)
Corporate Bonds, CommercialPaper and other
2017 € 425mln
LCR
31/12/2017
143%
NSFR
31/12/2017
121%
Excluding cash position of € 359mln in 2017
Strong regulatory ratio’s
Retail banking activities represent the main liquidity risk for Bank J.Van Breda & C°
Very stable financing mix
Stable funding Client deposits primary source of funding
Strong client deposit* gathering ability Conservative funding mix Stable Loan-to-Deposit Ratio
21
+6%
2017
3.9 3.6
4.2
2015 2014 2013
4.5
3.7
2016
In E
UR
bill
ion 1%
93%
5%
1%
commercial paper
client deposits
interbank
subordinated debt
2013 2014 2015 2016 2017
100% 100% 99%
95% 94%
€ 4.8bn
* Figures exclusive subordinated certificates
Sound credit portfolio
Risk costs credit portfolio
2009 2010 2011 2012 2013 2014 2015 2016 2017
0,09% 0,15% 0,06% 0,08% 0,04% 0,03% 0,04% 0,01% 0,04%
22
Non-performing loans < 1,54%
Restructured loans < 1,05%
Benchmarking with the Sector (NBB source)
Bank J. Van Breda & C°
2016 2017 # 2016 2017
Profitability
Return on equity 9,1% 8,9% # 7,4% 7,4%
Net profit/total assets 0,6% 0,6% # 0,8% 0,7%
Net intrest income/total assets 1,5% 1,4% # 1,6% 1,5%
Cost income 58,4% 58,2% # 59,4% 59,1%
Solvency
Common Equity ratio (phased-in) 15,7% 16,2% # 14,8% 14,2%
Risk weighted assets/total assets 36,2% 37,5% # 69,2% 66,1%
Leverage ratio (phased-in) 5,5% 5,9% 9,8% 8,9%
Liquidity
Customer loan to deposit ratio 95% 96% # 100,0% 99,5%
Liquidity coverage ratio 140% 138% # 150% 143%
Credit risk
Loan loss ratio loans & receivables 0,16% 0,07% # 0,01% 0,04%
Non performing loans 3,4% 2,8% # 1,8% 1,5%
Non performing loans domestic portfolio BE 2,7% 2,3%
Sector
4 Strategy &
Succes Factors
24
Only for … entrepreneurs & liberal professions
25
“To be the best provider of
financial guidance …
for professional & private assets
in all life stages of the client”
Clear & meaningful purpose
26
Our aim is that entrepreneurs
and liberal professionals
make the right financial choices.
This will bring them the peace of mind that
enables them to focus on their real ambitions
We assist our clients
in systematically building up,
managing and protecting their assets
Holistic approach
27
Professional
Activity
Loans
Accumulation
of assets
Loans
Activity
Accumulation
of assets
Management and
protection of assets
Live of one’s
investments
Build up
sufficient assets
Creation of value Private
Overview – Strategy – Follow-up
Liberal profession
Entrepreneur
Tailor-made financial guidance
28
Full package of banking services
In partnerships
with insurance companies
& asset managers
Three strategic values Focused on customer satisfaction
Specialised Personal Pro-active
51% Net Promotor Score
Resulting in one of the highest Net Promotor Scores in the
Belgian banking market
29
Net Promotor Score 51
30
From product to UUX Se
Vraag/
Klacht
Partner
Personalization
Purpose
Pride
Protection
Product Price Place Promotion
NPS
X
UX
UUX
Promotor
31
5 Prepared for
the future
32
Strong company culture
2012 2014 2016 2018
• Credibility 80% 82% 83% 85% +2%
• Respect 76% 78% 79% 81% +2%
• Fairness 73% 73% 77% 80% +3%
• Pride 83% 84% 85% 86% +1%
• Camaraderie 83% 87% 87% 88% 0%
The results indicate that 94% find Bank J.Van Breda a very good organization
to work for: 92% 91% 94% 94%
Results “Great Place to Work” survey
33
Commercial succes allows to invest
# Account managers
Real estate
IT
Bank de Kremer
34
# Account managers
2000: 60
2005: 101
2010: 132
2018: 158
> 8.000 visits to
prospects per year
Entrepreneurs with proven
track record
Niche programms towards
young liberal professions
Proposition based on
added value
35
Proactive & selective acquistion
Geographical footprint matching the niche
Antwerp 168.859 entrepreneurs
West-Flanders 127.775 entrepreneurs East-Flanders
137.527 entrepreneurs
Brussels 126.669 entrepreneurs
Vlaams-Brabant 102.155 entrepreneurs
Brabant Wallon 46.619 entrepreneurs
Limburg 78.336 entrepreneurs
Liège 89.079 entrepreneurs
Luxembourg 23.866 entrepreneurs
Namur 43.596 entrepreneurs
Hainaut 97.424 entrepreneurs
Antwerp (2)
Brussels (2) Leuven Hasselt
Liège
Namur
Mons
Herentals Mol
Turnhout
Kontich Lier
Mechelen
Kapellen ‘s Gravenwezel
Genk
St-
Truiden
Halle
Grimbergen
Aalst
Gent Deinze
Dendermonde
De Pinte
Ninove Oudenaarde
St-Gillis-Waas St-Niklaas Brugge
Ieper Kortrijk
Roeselare Waregem
Waterloo Wavre
Tournai
* Source: FOD Economie
**Source: Unizo - KMO Rapport 2017
56% of Belgian
entrepreneurs
located in Flanders
**
31
out of our 41
branches located
in Flanders Concentration of entrepreneurs
Bank J.Van Breda & C° branch
36
20% of Belgian
working population is
entrepreneur*
Upgrade branches
37
Kapellen
Sint-Niklaas
Upgrade branches
38
Herentals Hasselt
New IT platform (2009-2015)
Paperless bank
PA
YM
EN
TS
RE
MA
ININ
G F
UN
CT
ION
AL
ITY
CR
ED
IT F
AC
ILIT
IES
FIN
AN
CIA
L M
AR
KE
TS
& M
ON
EY
MA
RK
ET
LO
AN
S
INV
ES
TM
EN
TS
– IN
TE
RF
AC
E
DE
LE
N
CL
IEN
TS
1 S
IMU
LA
TIO
N T
OO
LS
(PF
T)
TE
RM
AC
CO
UN
TS
AC
CO
UN
TS
DE
BE
T &
CR
ED
IT C
AR
DS
INS
UR
AN
CE
S
FINANCE
40
New bank application EOS
Some features:
Reduces the use of paper documents
Avoids repeated encoding
Uses eID and other data sources
User friendly application
Allows processing outside the bank
Electronic signature
High tech – Human Touch UX
41
Products and transactions
2019 - Bank without cash
As from 2016 only drop-boxes & public ATM
Signing documents online
60% signed on iPad Accountmanager
31% signed online
9% signed on paper
Travel-free administration
Consul-tancy
Events & Community
Products
Transactions
Investment advice
42
Investment advice
Bank Van Breda = entrepreneurs only
Digital proposition for mass affluent
• Home market – no cannibalisation
• Financial planning app Launch 20/6/2018
Free of charge and 100% anonymous
Focus 2018: build user base
Launch december 2018: online onboarding
Focus 2019: online cross buying
Consul-tancy
Events & Community
Products
Transactions
Investment advice
43
Key Takeaways
Sound capital & liquidity position
Solid sustainable growth track record
Future oriented IT platform
Strong company culture
Clear purpose unique user experience
45
Q&A
Dirk Wouters, CEO
Véronique Léonard, CFO
46