to be among the best performing retail-focused ... 24-25.11.2016/24.11_11.30-12.15.pdf · to be...
TRANSCRIPT
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To be among the best performing retail-focused institutions in Europe
KBC wants to be among Europe’s best performing retail-focused financial institutions. This will be achieved by:
Strengthening our bank-insurance business model for retail, SME and mid-cap clients in our core markets, in a highly cost-efficient way
Focusing on sustainable and profitable growth within the framework of solid risk, capital and liquidity management
Creating superior client satisfaction via a seamless, multi-channel, client-centric distribution approach
By achieving this, KBC wants to become the reference in bank-insurance in its core markets
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Well-defined core markets provide access to ‘new growth’
KBC Group’s core markets BE CZ SK HU BG
Loans and deposits
Investment funds
Life insurance
Non-life insurance
MARKET SHARE (END 2015)
21% 19% 11% 10%
3%
7% 18% 26% 40%
7% 17%
12% 4% 4%
10% 5% 3%
7% 9%
IRELAND
UK
BELGIUM
NETHERLANDS
GERMANY
CZ
FRANCE
SK
HU
BG
Macroeconomic outlook: based on GDP, CPI and unemployment trends / Inspired by the Financial Times
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Overview of key financial data at 2Q 2016
Market cap: EUR 20bn
Net result 1H 2016: EUR 1.1bn
Total assets: EUR 266bn
Total equity: EUR 16bn
CET1 ratio (Basel 3 transitional): 14.9%
CET1 ratio (Basel 3 fully loaded): 14.9%
S&P Moody’s Fitch
Long-term (KBC Group)
A (Negative) BBB+ (Stable)
A1 (Stable) Baa1 (Stable)
A- (Positive) A- (Positive)
Short-term A-1 Prime-1 F1
Net result 1H 2016: EUR 1.0bn1
Total assets: EUR 230bn
Total equity: EUR 14bn
CET1 ratio (Basel 3 transitional): 13.5%
CET1 ratio (Basel 3 fully loaded): 13.6%
C/I ratio 1H 2016: 60%2
Net result 1H 2016: EUR 123m
Total assets: EUR 38bn
Total equity: EUR 3bn
Solvency II ratio: 187%
Combined operating ratio 1H16: 95%
KBC Group KBC Bank KBC Insurance
Credit Ratings of KBC Bank (KBC Group) as at 1 August 2016
1. Includes KBC Asset Management ; excludes holding company eliminations
2. Adjusted for specific items, the C/I ratio amounted to c.56% in 2Q 2016
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Net result 1H 2016: EUR 8m
Total assets: EUR 1 419m
Total equity: EUR 152m
CET1 ratio (Basel 3 transitional): 18.02%
CET1 ratio (Basel 3 fully loaded): 18.13%
C/I ratio 1H 2016: 62.3%
3 % market share, 10 th ranking in the
market
Net Client Promotor Score 2015: highest
in the Bulgarian market
2nd fastest growing bank in the market
(YOY growth)
CIBANK DZI
Net result 1H 2016: EUR 0.4m
Total assets: EUR 269m
Total equity: EUR 74m
Solvency II ratio: 221%
Combined operating ratio 1H16: 96.5%
MS Total insurance market – 11.2%
Market share Life – 12.9%
‘Insurer of the year’ for the last 5
consecutive years
Top 3 insurer
KBC in Bulgaria - Overview of key financial data at 2Q 2016
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New Way of Cooperation in Internal Audit
Traditional Hierarchical Organisation Network Organisation
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Core Objectives to guide Internal Audit
Be a trusted partner for Business;
Distribute knowledge;
Provide assurance regarding the status of the internal control system in a qualitative
manner and from an independent perspective;
Ensure relevant risks are identified and covered;
Be consistent throughout the group;
Provide clear and actionable recommendations that respect a balanced risk-return
environment;
Communicate in a timely, clear and comprehensive manner;
Get the job done in the most (cost) effective way;
Provide an inspiring environment for the employees in Internal Audit.
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Communicate in a timely, clear and comprehensive manner
Communication by Internal Audit division to various stakeholders
Communication by auditors to their business counterparts to ensure buy-in is
created and partnership is built
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Be a trusted partner for Business
Providing added value by:
Understanding the business dynamics
Consultancy/advisory services at the request of the Business
Organising the audit work in the least disruptive manner towards
the business activities
“In the end, you should become a Chief Challenging Officer. Someone the organisation can see as a coach in internal control, risk management and
governance.”
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Get the job done in the most (cost) effective way
Quality comes at a cost (resource & time investment) but this needs to be
managed and there needs to be a balance between both
“newspaper editor attitude”
Efficiency Management should transcend the individual audit assignment and
should be applied portfolio-wise Plan realisation
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The impact of Technology
Automation, Standardization, digitalization, robotization, big data, IOT, internet sales,…
Putting standing business models under pressure but also creating opportunities. Need to: cut waste, simplify, standardize, fight bureaucracy Look for: innovation - new products, services and revenue streams Analyze: viability of (digital) strategies, investment cycles and saving opportunities
Examples of the banking sector: mobile digital distribution, fintech, immaterial, IP driven value of companies, new ways of financing- Crowdsourcing, start-ups, scale ups Blockchain applications
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Business challenges
Increasing and new risks and volatility
Cyber risk – need for quantification, prioritization Geopolitical risks – more resilient businesses Regulatory risks Strategic risks
Data analysis and forecasting capacity
More (big) data become available – (uncontested) mathematical models Financial (often internal but also market) and non-financial ( marketing data, social media,…) information need to be combined into ‘now’ and forward looking trends, risks and value drivers New analytical tools
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People and society
People War for talent Smart technologies require differently smart people Digital people Purpose and ethics
Society Reputation The power of the (social media) people Environment communicate with all stakeholders
New cooperation models Ecosystems Partnerships Design thinking and co-creation