kbc group company presentation spring 2005 web site: www.kbc.com ticker codes: kbc bb (bloomberg)...

Download KBC Group Company presentation Spring 2005 Web site: www.kbc.com Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) ISIN code: BE0003565737

If you can't read please download the document

Post on 12-Jan-2016

215 views

Category:

Documents

3 download

Embed Size (px)

TRANSCRIPT

  • KBC GroupCompany presentation Spring 2005Web site: www.kbc.com Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) ISIN code: BE0003565737

    cy_pres_3Q04_v1110.ppt

  • Contact informationInvestor Relations Office : Luc Cool Nele Kindt Marina Kanamori Tel.: +32 2 429 49 16 investor.relations @ kbc.comSurf to www.kbc.com for the latest update.

    cy_pres_3Q04_v1110.ppt

  • Disclaimer

    This presentation is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security.Although the statements of fact in this presentation have been obtained from and are based on sources that KBC believes to be reliable, KBC does not guarantee their accuracy, and any such information may be condensed or incomplete.This presentation contains forward-looking statements with respect to our strategies and earnings development. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities. The risk exists that these statements may not be fulfilled and that future results differ materially.By receiving this presentation, each investor is deemed to represent that it is a sophisticated investor and possesses sufficient investment expertise to understand the risks involved.

    cy_pres_3Q04_v1110.ppt

  • Table of contentsCompany profileStrategy and earnings drivers2004 Financial highlights Impact of IFRSInformation on capital managementClosing remarks on valuation

    cy_pres_3Q04_v1110.ppt

  • Company profileFoto gebouw1

    cy_pres_3Q04_v1110.ppt

  • Considerable scale in EurolandEuroland top-30 banks, ranking by market cap ** DJ Euro Stoxx Banks constituents as at 14 March 2005KBC Group : 24 bn euros

    cy_pres_3Q04_v1110.ppt

  • Shareholder structure* Including ESOP hedgeCERA/Almancora 27.3%KBC (own shares: 3.3%)Other committed shareholders 11.4%MRBB 11.6%Free float 46.6%Free floatKBC is majority-owned by a group of committed shareholders providing continuity to pursue long-term strategic goalsCore holders include the Cera/Almancora Group (co-operative investment company), a farmers association (MRBB) and a syndicate of industrialist families Situation as of 31-Dec-04 (before merger with Almanij)Situation as of 3-Mar-05

    cy_pres_3Q04_v1110.ppt

  • Business portfolioKBC is a top bancassurer and asset manager in Belgium and has successfully expanded its operations in CEEThanks to the merger with Almanij (March 2005), the private banking activities were expanded to include a Western-European network. PB has become a more pronounced key focusKBC is also active be it rather selective in corporate banking (mostly in W. Europe) and financial markets. As investments in CEE have increased, operations in these areas became relatively less importantCEECapital marketsInternational corporateEuropean private banking Revenue breakdown(2004 pro forma new Group, excl. group items)Belgium Gevaert

    cy_pres_3Q04_v1110.ppt

  • Top-3 player in BelgiumMarket share:Consolidated banking landscape (80% of market held by top-4 banks)Market highly receptive to cross-selling of AM & insurance products (the bancassurance model dominates)31-Dec-03

    cy_pres_3Q04_v1110.ppt

  • Top-3 player in the CEE regionKBC Group is one of the largest international players in the regionUnlike the other players, KBC limits its presence to the EU Member States (Czech Republic, Slovakia, Hungary, Poland and Slovenia) and is active in both the banking and insurance fieldsInternational banks in CEE (by total assets, in bn EUR):

    Source: RZB assets as at 31 Dec 03, ownership structure as at 30 Jun 04

    cy_pres_3Q04_v1110.ppt

  • Top-3 position in the CEE regionBankingInsuranceSlovakia: Market share: 6% (No. 4) Inhabitants: 5 m Total assets: 2 bn EURCzech Republic: Market share: 21% (No. 2) Inhabitants: 10 m Total assets:18 bn EURPoland: Market share: 5% (No. 8) Inhabitants: 38 m Total assets: 5 bn EURSlovenia: Minority interest (34%) Inhabitants: 2 m Market share: 41% (No. 1)Czech Republic: Life M share: 8% (No. 5) Non-life M share: 4% (No. 6) Slovakia: Life M share: 4% (No. 8) Non-life M share: 2% (No. 7) Hungary: Life M share: 3% (No. 7) Non-life M share: 4% (no 6) Poland: Life M share: 2% (No. 7) Non-life M share: 12% (No. 2) Slovenia: Life M share: 6% (No. 5) Hungary: Market share: 11% (No. 2) Inhabitants: 10 m Total assets: 7 bn EURKBC Group invested 3.6 bn to achieve a prominent position in a growth market of 65 m inhabitantsEspecially in Poland, KBC is looking for external growth (lack of scale)

    cy_pres_3Q04_v1110.ppt

  • European private banking networkNetherlands: Theodoor Gilissen Acquired in 03 participation: 100%Germany: Merck Finck & Co Acquired in 99 participation: 100%Switzerland: Kredietbank (Suisse) Historical presenceItaly: Fumagalli Soldan Acquired in 01 participation: 95%Monaco: KB Luxembourg (Monaco) Historical presenceLuxembourg: Kredietbank Luxembourg Parent companyFrance: KBL France Acquired in 98 participation: 100%Spain: Banco Urquijo Acquired in 98 participation: 100%Since 98, KBC Group (KBL) has developed a private banking network throughout Western-Euope, anticipating erosion of its offshore activities in LuxembourgAUM grew from 18 bn to c. 44 bn (appx. 70% managed outside Luxembourg)Belgium: Puilaetco private bankers Acquired in 04 participation: 100%UK: Brown Shipley Acquired in 89 participation: 100%

    cy_pres_3Q04_v1110.ppt

  • Solid performanceKBC pre-merger:ProfitabilityEfficiencySolvencyTier-1, bankingSolvency, insuranceCost/income, bankingCombined ratio, insuranceReturn on equityEPS growth 9.5%316%65%96%13%Dec 03+8%10.1%389%60%95%Dec 048.8%320%65%101%13%Dec 02+1%>8%>200%58%95%16%Target+10%18%+54%Combined ratio, insurance, excluding reinsurance. Solvency, insurance, including unrealized gains.

    cy_pres_3Q04_v1110.ppt

  • Solid performance (pro forma)KBC post-merger (pro-forma):* Non-updated targets used by the KBC Bank and Insurance Group before the merger with Almanij in March 2005ProfitabilityEfficiencySolvencyTier-1, bankingSolvency, insuranceCost/income, bankingCombined ratio, insuranceReturn on equityEPS growth 9.6%316%66%96%12%Dec 03+26%10.0%389%63%95%Dec 048.8%320%66%101%10%Dec 02+2%14%+29%Combined ratio, insurance, excluding reinsurance. Solvency, insurance, including unrealized gains.

    cy_pres_3Q04_v1110.ppt

  • Strategy and earnings driversFoto gebouw2

    cy_pres_3Q04_v1110.ppt

  • Strategy headlinesMerger of KBC with parent company Almanij, following public bid on KBL European Private bankers (KBL epb'), in order to unlock additional value on the back of:increased visibility and liquidityrealization of group synergiesFlexibility to continue current strategies:Leverage on bancassurance model and private banking expertiseCore geographic focus on Belgium, CEE and private banking throughout EuropeContinued good prospects for Belgian marketCEE and European private banking to remain long-term earnings driversContinued quest for (cost) synergies, partly through intra- and cross-group co-sourcing for back-office processesBalanced risk profile through diversified business portfolioSolid solvency levels and credit ratings

    cy_pres_3Q04_v1110.ppt

  • Earnings drivers in Belgium - overviewDo not underestimate the market:KBC Group is well positioned:Consolidated banking market (80% of assets held by Top 4)Savings ratio amongst highest in the world (every year, ca. 15% of GDP flows into fin. assets)Market highly receptive to cross-selling of AM & insuranceGrowth trend for mortgages, AM and life insurance business of about 10% per year expected to continuCredit quality has proven to be solid over the cycle

    Top-3 market position, esp. strong in Northern region (one of the wealthiest regions in the EU)Innovative product offering in retail AM (steadily increasing market share throughout the past 10 yrs.)Performing bancassurance distribution model (life reserves grew >20% p.a. over last 3 yrs.)Cost efficiency improvement potential (on the back of business process redesigning and co-sourcing of back offices processes with other banks)

    cy_pres_3Q04_v1110.ppt

  • Earning drivers in CEE - overviewStrong market growth momentum:KBC Group is well positioned:

    Nom. GDP growth in 2005 at 6.5%, outgrowing EMU by 3.3%Ongoing catch-up in product penetration (currently, an avg. 45% for banking accounts and 5% for mortgages)Mortgage volumes growing at double-digit pace (up 51% on avg. in 2004)Financial sector could grow five-fold if financial assets to GDP were to reach current levels of S. EuropeSolid market position in retail and corporate businesses (excl. banking in Poland)Competitive advantage in enhancing cross-selling of asset management and insurance productsC/I still on high side, allowing for further improvementAdequately provisioned balance sheet (risks under control)Geographical exposure entirely within EU, limiting risk substantiallyAvailability of capital within the Group

    cy_pres_3Q04_v1110.ppt

  • Above average GDP growth, CEECzech RepublicSlovakiaHungaryPolandReal GDP growth + inflation - KBC estimatesReal GDP growth + inflation - KBC estimatesReal GDP growth + inflation - KBC estimatesReal GDP growth + inflation - KBC estimates3.2%6.8%12.5%8.5%8.010.7%8.1%8.3%8.9%7.7%6.5%5.6%6.8%

    cy_pres_3Q04_v1110.ppt

  • Earnings drivers in private bankingChanging market environment:KBC Group is well positioned:Strong relationship-based approach, open architecture concept and add-on of the product expertise of KBC AM to the tailor-made services of KBL epbStringent compliance infrastructure, centrally monitored from Luxembourg Greatly improved efficiency (implementation of large s

Recommended

View more >