banco sabadell · presentation should inform themselves about and observe such restrictions. ... 1....
TRANSCRIPT
Banco Sabadell2Q13 Results
July 25th, 2013
Disclaimer
Banco Sabadell cautions that this presentation may contain forward looking statements with respect to the business. financial condition. results of operations. strategy. plans and objectives of the BancoSabadell Group. While these forward looking statements represent our judgement and future expectations concerning the development of our business. a certain number of risks. uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include. but are not limited to. (1) general market. Macroeconomic. governmental. political and regulatory trends. (2) movements in local and international securities markets. currency exchange rate. and interest rates. (3) competitive pressures. (4) technical developments. (5) changes in the financial position or credit worthiness of our customers. obligors and counterparts. These risk factors could adversely affect our business and financial performance published in our past and future filings and reports. including those with the Spanish Securities and Exchange Commission (Comisión Nacional del Mercado de Valores).
Banco Sabadell is not nor can it be held responsible for the usage. valuations. opinions. expectations or 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 subjective valuations 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 this presentation 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 or invitation of any offer to buy or subscribe to any securities nor shall they or any one of them form the basis of or be relied on in connection with any contract or commitment whatsoever.
Consolidated accounts
3
This quarter the numbers reported by Banco Sabadell include:
Banco Sabadell (100% of B. CAM as of June 1st, 2012)BMN-Penedés network (as of June 1st, 2013)Lloyds Spain network* (as of June 30th, 2013)
They do not include:
Banco Gallego. Expected to close by 4Q13
Additional information regarding the contribution of each acquired business can be found in the annex on page 45
22* Lloyds Spain only includes balance sheet; no impact in P&L as the date of consolidation was June 30th, 2013
4
1. 2Q13 in summary
2. 2Q13 Results
3. Commercial activity and liquidity
4. Risk and capital management
5. Managing real estate assets
Annex
Index
33
5
1. 2Q13 in summary
44
6
2Q13 in summary
Good income generation with the turning point in net interest income expected in 3Q13
Strong commercial activity with market share gains in several segments of the market
Steady delivery of synergies and good cost control
Extraordinary trading results allow for front loading of provisions, anticipating the impact of reclassified refinanced loans
Strong coverage levels
Core Tier 1 EBA capital ratio of 9.5% having absorbed recent acquisitions
55
7
2. 2Q13 Results
66
2Q13 Results
Jun. 12 Jun. 13 % var 13/12
Net Interest Income 854.3 865.8 1.4%Equity Method & Dividends 12.7 3.4 -73.7%Commissions 288.8 356.6 23.5%Trading Income & Forex 265.5 1,046.3 294.0%Other Operating Results -54.2 -74.9 38.3%Gross Operating Income 1,367.1 2,197.2 60.7%Personnel Costs -415.2 -524.9 26.4%Administrative Costs -209.2 -285.2 36.3%Depreciations -69.6 -105.5 51.6%Pre-provisions Income 673.1 1,281.6 90.4%Total Provisions & Impairments -1,889.3 -1,073.2 -43.2%Gains on sale of assets 18.5 -6.2 --Badwill 933.3 0.0 --Profit before taxes -264.5 202.2 --Taxes and others 354.5 -78.8 --
Attributable Net Profit 90.1 123.4 37.0%
8
Note: 2013 includes one month of the BMN-Penedés network. Trading income and Forex in the four years prior to 2013 has been on average €317M. Euros in million 77
Net interest income reaching the turning point …
Net interest income evolutionEuros in million
Net interest income 1H13:
+1.4% YoY
+0.5% YoY, excl. BMN-Penedés407.3
447.0
526.4487.3
451.2414.6 >400e
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13e 4Q13e
The net interest income is expected to reach its turning
point in the third quarter
988
... driven by a reduction in the cost of customer funds …
Customer loan yield and cost of customer funds In percentage
2.21% 2.09% 2.19%2.07%1.85% 1.97% 2.00% 2.06% 2.11% 2.12% 2.00% 2.03%
1.48%
2.83%
1.70%1.36% 1.44% 1.59%
3.94%4.02%4.05%4.16%4.28%4.22%4.12%3.99%3.86%3.65%3.50%3.49%3.53%
3.79%4.21%
4.93%
5.56%
3.66%
4.13%4.48% 4.47%4.48%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Customer loan yield, Ex-APSCustomer loan yield
Cost of customer funds
1099Note: Does not include the BMN-Penedés network.
… already reflected in the cost of new deposits …
11
New deposits by maturitiesSplit of maturities, in percentage
Contractual rates on depositsIn percentage
Stock New production/renewals
3.32% 3.26% 3.35%3.58%
3.36%
3.13%
2.80%
2.50%
1.85%
3.06%
3.39%
2.16%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
22% 25%15% 11% 14% 14%
17% 13%
9%7%
10% 9%
15% 19%
16%11%
8% 9%
12% 10%
6%19%
57% 58%
52%
56%36%43%
4% 3%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Up to 3 months From 3 to 6 monthsFrom 6 to 12 months From 12 to 18 monthsAbove 18 months
The cost of new deposits has been reduced while the term has been extended
1010Note: Does not include the BMN-Penedés network.
… with an acceleration of the positive impact expected in the second half
12
8.9
6.6
3.9
4.3
4Q13e
3Q13e
2Q13
1Q13
Maturities of 12-month deposits and impact from lower interest rates on depositsSabadell 12-month deposits maturitiesEuros in billion
Current rates on deposits
3.8%
3.5%
3.3%
3.2%
Example of the cost of a new deposit
Potential savings, annualised (€m)
1.5%
1.5%
Most of the expensive term deposits mature in the second halfThe impact from the repricing process is almost 3 times higher in the final quarter
1.5%
1.5%
202
135
68
73
2.8x
1111
Significant growth seen in current accounts
13
Current account monthly volume evolution Euros in billion
B. CAM
1.77%
5.70%5.35%3.50%
May-11 May-12 May-13
Sabadell’s market share in Spanish current accounts
Sabadell is gaining market share in current accounts
27.426.3 26.8 27.3 26.4 26.6 27.1 27.2 27.9 28.9 29.6
30.8
34.5
Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13
Total growth:
+26% YoY
Note: The market share is calculated using residental sector data 1212
3.0
31.5 Organic growth:
+15% YoY
BMN-Penedés and Lloyds Spain network
Active price management in a low interest rate environmentBanco Sabadell credit portfolio spreadsBasis points
Product Jun-12 Mar-13 Jun-13 Var QoQ Var YoY Jun-12 Mar-13 Jun-13 Var QoQ Var YoY
Credits 345 428 411 -17 +66 298 396 401 +5 +103Loans 340 389 388 -1 +48 219 235 246 +11 +27Mortgages to individuals 151 249 239 -9 +89 85 86 87 +1 +2Leasing 236 379 412 +33 +176 129 144 153 +9 +25Renting 551 745 651 -94 +100 368 447 483 +36 +115Commercial loans 402 469 448 -21 +46 430 491 470 -22 +40Confirming 291 394 405 +11 +114 293 398 396 -2 +103Forfaiting 467 574 584 +10 +117 532 567 587 +20 +55
Front book spreads Stock
1.50%
1.22%
0.74%0.55%
0.54% 0.51% 0.53% 0.56%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13e 4Q13e
-71 pbs
Euribor 12-months evolution
-96 pbs
+1 pbs-21 pbs
The negative impact on the net interest margin due to lower euribor rates disappears in the second half of the year
14Note: The front book spreads are weighted averages in the quarter. Numbers do not include BMN-Penedés. June 2012 refers to Banco Sabadell stand alone 1313
Significant improvement in commission income
Commission income evolutionEuros in million
26.1 24.8 25.2 26.6 25.9
47.5 48.2 55.8 54.7 52.4
59.973.6
83.6 94.0 90.1
8.7
28.6
53.8
105.9
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Commissions 1H13:
+23.5% YoY
+22.0% YoY, excl. BMN-Penedés
188.2
133.5
155.3164.6
175.3 168.4
Asset Mgmt ServicesLending
Commissions from fixed income issues1 Including mutual funds commissions and pension funds and non-life insurance brokerage
151414
Personnel expenses are reduced on a like-for-like basis …
16
Personnel expenses evolutionEuros in million
182.2221.5
292.2 281.2258.4 261.1
1.9 3.5
5.8
5.8
2.0 5.9
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Recurrent Non-recurrent
188.0
227.3
294.2287.1
260.3 264.6Personnel expenses 1H13:
+26.4% YoY
(excl. BMN-Penedés, +24.5%)
Personnel expenses on a like-for-like basis* 1H13:
-14% YoY
1515* Including Banco CAM in 2012 and excluding BMN-Penedés as well as non-recurrent expenses.
… as well as general expenses
17
General expenses evolutionEuros in million
93.8113.1
151.9 153.1 147.1 138.1
0.4
1.9
0.9
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
General expenses 1H13:
+36.3% YoY
(excl. BMN-Penedés, +35.2%)
Non-recurrent
94.2
115.1
Recurrent
154.0151.9147.1
138.1
General expenses on a like-for-like basis* 1H13
-9% YoY
1616* Including Banco CAM in 2012 and excluding BMN-Penedés as well as non-recurrent expenses.
Delivering the synergies post the integration of new businesses
18
Cost and synergies evolution following recent acquisitionsEuros in million
1,123
2,133
1,758
254
756
81
21748 20 8
Total cost synergies:€375M
B.CAM impact
BMN-Penedés, Lloyds Spain
and B.Gallegoimpact
Synergies 2012
Synergies 2013e
Synergies 2014e
Synergies 2015e
Synergies 2016e
Group cost base
Group cost base
2016e post synergies
Sabadell stand alone cost base
1717
19
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
51.1%47.6%
47.0% 46.0%
40.8%
47.3%45.7%
49.7%
46.3%
Jun. 11 Sep. 11 Dic. 11 Mar. 12 Jun. 12 Sep.12 Dic. 12 Mar. 13 Jun. 13
Optimising the network
Branches Employees
10,699
1,387
Lydian P. Bank
1,383
10,675 10,550
1,382
2,202
16,754
Banco CAM
16,413
2,2041,898
15,59614,957
1,889
2,382
17,253
BMN-Penedésand Lloyds
Spain *
Employee and branch evolutionIn number
Cost income evolutionin %
* Adjusted for non-recurrent trading income 1818
Anticipating the reclassification of refinanced loans
20
Provisions booked in 2Q13Euros in million
Representing an underlying cost of risk of 80 basis points
2Q13Ordinary credit impairments -246RE assets -112Other extraordinary provisions -69Anticipating reclassification of refinanced loans -321
Total provisions and impairments -748
Anticipating the reclassification of refinanced loans
Ordinary cost of risk: 80 basis points
1919
21
3. Commercial activity and liquidity
2020
Growing the customer base …
22
Remarkable success in customer gathering
10,500 new customers every
week
6.2 million customersincluding
BMN-Penedés
Evolution of total number of customers
Apr. 13 May. 13 Jun. 13 2Q13
Individuals 35,587 40,088 35,773 111,448
Companies 9,040 8,970 7,944 25,954
% Var.Total 0.8%
Dec. 12 Jun. 135,502,584 5,545,749
The main driver is customer value, particularly in the old B. CAM network
2121Note: Customer gathering numbers do not include BMN-Penedés.
… with strong growth in customer funds
Customer funds evolutionEuros in million
Organic growth: c. 11% Organic growth:
€8.37 billion Non-organic growth:
€9.16 billion*75,4 2 0 75,0 588 0 ,179 8 2 ,6 9 2
9 2 ,9 51
Jun-12 Sep-12 Dec-12 M ar-13 Jun-13
232222* Refers to the aquired businesses of the BMN-Penedés and Lloyds Spain
Gaining market share both in individuals …
24
Household deposits1 Household loans
5.17%May. 12
May. 13
+4 bps 5.23%May. 12
May. 13
+37 pbs+63 bps
5.86% 5.21%
Payroll accounts Transactionality2
5.39%Nov.12
Jun. 13
6.27%Jun. 12
Jun. 13
+60 bps
6.87%
+18 bps
5.57%
Note: Data presented like-for-like excluding BMN-Penedés and Lloyds1 Including term and sight deposits and repos2 Including cheques, transfers, SEPA transfers, receivables and promissory notes
2323
… as well as in companies
25
Corporate credit ICO loans (publicly subsidised loans)
12.31%Aug. 12
Jun. 13
8.63%May. 12
May. 13 9.95%
+132 bps
31.07%
+1,876 bps
Sight deposits companies Volume at BS card PoS
10.48%
11.07%
May. 12
May. 13
+59 bps
10.74%
+103 bps 9.71%Mar. 12
Mar. 13
Sabadell continues to provide credit to SMEs and corporates
2424Note: Data is presented like-for-like, including B. CAM in 2012 and excluding BMN-Penedés and Lloyds Spain
26
B. CAM network closing the gap in terms of customer income generation
Retail banking (€/customer) Small businesses (€/customer)
High value customers(€/customer)
1,127
1,099
770
763Dec-12
Jun-13
248
259
199
217
Dec-12
Jun-13
1,811
1,913
1,463
1,355Dec-12
Jun-13
4,290
4,2612,411
2,385Dec-12
Jun-13
Number of B. CAM customers by segment:
• Retail: 1,212,570• High value
customers: 135,747• Small businesses:
17,632• SMEs: 4,872
-6
-35-7
-55
SMEs(€/customer)
Customers in the old home region of B. CAM originally Banco SabadellCustomers in the old home region of B. CAM originally B. CAMThe change in different income generation in euros between the B. CAM network customers and the Banco Sabadell customers in the old home region of B. CAM
2525Note: Data refers to annual customer income generation in euros.
Key achievement: Recovering the position as the most valued bank
27
Recovery to levels pre B. CAM Most valued by customers
7.547.21 7.32 7.20 7.24
7.087.27
5.85
6.36 6.48
7.17
6.956.77
6.61
6.11 6.06 6.07 6.175.89 5.93
6.08 6.04
2007 2008 2009 2010 2011 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Sabadell Market
6.346.25
6.096.07
6.016.00
5.955.81
5.494.984.94
4.844.27
7.156.77
SabadellEntity 2Entity 3Entity 4Entity 5Entity 6Entity 7Entity 8Entity 9
Entity 10Entity 11Entity 12Entity 13Entity 14Entity 15Entity 16
7.17Banco CAMacquisition
Sabadell
Customers perceive that the gap between the quality of service of Sabadell and B. CAM has been closed.
This is a significant commercial milestone2626Source: STIGA, EQUOS “RCB Análisis de Calidad Objetiva en Redes Comerciales Bancarias” (2Q13).
Sabadell is a benchmark in providing transparent information to customers
28
Valuation on how loans are explained
Valuation of written support documentation
8.65
9.25
8.448.69 8.57 8.68
7.55
6.99
6,766.70
6.887.127.35
7.59
8.06
8.53
2007 2008 2009 2010 2011 2012 1Q13 2Q13
Sabadell Sector
Banco Sabadell is the most valued bank on how loans are explained and on the quality of written support documentation
Banco CAMacquisition
6.92
4.584.27
4.95
6.25 6.52
5.29 5.23
4,033.893.733.57
3.523.203.50
3.77
2007 2008 2009 2010 2011 2012 1Q13 2Q13
Sabadell Sector
Banco CAMacquisition
2727Source: STIGA, EQUOS “RCB Análisis de Calidad Objetiva en Redes Comerciales Bancarias” (2Q13).
Commercial gap improvement continues: €7.05 billion in 1H13 …
29
116.6%121.9%
134.9%131.0%
111.0%
2Q12 3Q12 4Q12 1Q13 2Q13
815 1,322
5,8113,439
7,046
-2,682
15,452
2007 2008 2009 2010 2011 2012 1H13
Change in commercial gapEuros in million
Loan to deposit ratioIn percentage
Customer funds and loans evolution Euros in million
Jun-12 Dec-12 Jun-13% Var.
YoYOn-balance sheet customer funds 75,420 80,179 92,951 23.2%Other on-balance sheet term funds1 47,971 53,095 58,408 21.8%Sight deposits 27,449 27,085 34,543 25.8%
Off-balance sheet funds 20,478 20,659 22,090 7.9%Mutual funds 8,533 8,585 9,693 13.6%Pension funds 3,184 3,709 3,716 16.7%Third party insurance products 7,742 7,313 7,289 -5.8%
Total funds 95,898 100,838 115,040 20.0%Gross loans to customers ex repos 123,378 115,392 121,605 -1.4%1 Other on-balance sheet term funds include term deposits and other funds placed in the retail network: preference shares, mandatory convertible bonds, senior debt, commercial paper and other. Excludes repos. Note: In 2012, changes in commercial funding cap include adjustments for capital increase.2012 numbers include Banco CAMLoan to deposit ratio is adjusted for provisions and intermediary loans such as ICO loans (government subsidy loans) 2828
… maintaining a balanced funding structure …
30
Deposits68.7%
ICO financing4.8%
Wholesale funding19.5%
Prefs0.1%
Retail issues1.8%
Repos5.1%
Group funding structure Group wholesale funding breakdown
Covered bonds61.7%
Senior debt1.5%
Prefs + Subordinated
3.7%
ECP6.2%
Securitisation19.2%
GGB8.1%
2929
… and efficiently managing liquidity
31
Group wholesale funding maturities Euros in million
ECB liquidity position Euros in million
Maturity by product type Euros in million
3Q13 4Q13 2014 2015 2016 2017 2018 2019 >2020 Outst. AmountCovered bonds (CH) 0 197 3,315 2,954 2,815 1,907 1,582 796 2,132 15,697Covered bonds (CT) 0 0 0 0 0 0 0 0 0 0GGB 0 0 1,005 0 0 1,066 0 0 0 2,071Senior debt 0 0 0 0 157 0 100 0 25 282Preference and Subordinated 0 0 0 0 302 77 0 0 499 878Other mid- and long-term financial instruments 0 0 70 0 0 0 18 0 18 106TOTAL 0 197 4,390 2,954 3,273 3,050 1,699 796 2,674 19,034
23,650
20,500
18,000
December 2012 March 2013 June 2013
0 197
4,390
2,9543,273
3,050
1,699
796
2,674
0
1,000
2,000
3,000
4,000
5,000
3Q13 4Q13 2014 2015 2016 2017 2018 2019 >2020
Banco Sabadell has no structural funding through the ECB
3030
32
4. Risk and capital management
3131
33
Risk and capital managementin summary
Coverage of total loan book exposure and real estate
assets
13,3%
One of the highest coverage levels of non- real estate
related loans
%13.3% 5.4%
Core Tier 1 EBA capital ratio after having absorbed
recent acquisitions
9,5%
NPL ratio, ex-APS, on a comparable basis*:
10,17%10.2% 9.5%
* The NPL ratio excluding BMN-Penedés, Lloyds and the reclassification of refinanced loans is 10.17% 32323232
Evolution of NPLs and RE assets
34
Evolution of NPLs, substandard and real estate assets, ex-APSEuros in million
4Q12 1Q13 2Q13
Ordinary net entries 1,094 385 760Change in RE assets 233 394 1Net entries + Change in RE assets 1,327 778 761Write-offs 387 247 305Quarterly change in ordinary non-performing assets 940 531 456
4Q12 1Q13 2Q13NPLs volume 10,287 10,424 10,879RE assets 5,927 6,320 6,321NPLS+ RE assets 16,214 16,744 17,200Substandard exposure 2,844 2,897 2,755
Total ordinary problematic assets ex-APS 19,058 19,641 19,955
Reclassified loans 378Acquired businesses 1,743Total problematic assets ex-APS 22,076
Total provisions ex-APS 9,410 9,516 10,581Coverage ex-APS 49.4% 48.4% 47.9%
9.3% of global coverage ex-APS (loans and real estate assets)
3333Note: Including BMN-Penedés and Lloyds Spain
NPL ratios by segment
35
NPL ratios by segment, ex-APSIn percentage
2Q12 3Q12 4Q12 1Q13 2Q13
Real Estate development and/or construction purposes 25.33% 26.87% 32.50% 38.38% 42.99%BS stand-alone 26.30% 25.01% 29.96% 36.03% 41.42%
Construction purposes non-related to real estate dev. 4.19% 4.28% 5.53% 5.96% 7.94%BS stand-alone 3.92% 3.92% 5.04% 5.76% 5.87%
Large corporates 6.32% 6.92% 7.10% 7.40% 7.48%BS stand-alone 2.91% 3.43% 3.88% 4.10% 4.16%
SME and small retailers and self-employed 7.33% 7.98% 9.00% 8.98% 9.81%BS stand-alone 6.64% 7.26% 7.30% 7.09% 7.84%
Individuals with 1st mortgage guarantee assets 6.16% 6.67% 7.61% 8.07% 8.17%BS stand-alone 3.42% 3.82% 4.41% 4.70% 4.96%
NPL ratio 7.82% 8.46% 9.33% 9.69% 10.62%
BS stand-alone 6.24% 6.78% 7.41% 7.98% 9.25%
+47 bpsexplained by thereclassification ofrefinanced loans
The increase in NPL ratio is explained by anticipating the reclassification of refinanced loans and the incorporation
of acquired businesses
Note: NPL ratio is calculated including contingent risk. Including BMN-Penedés and Lloyds. The NPL ratio excluding BMN-Penedés, Lloyds and reclassification of refinanced loans is 10.17% 3434
Maintaining high coverage levels of credit and real estate exposure
36
Coverage by segmentSplit between Asset Protection Scheme and rest
2Q13 BS ex-APS APS Total
Real estate assets 44.3% 45.2% 44.7%Real estate development loans 35.9% 45.2% 40.1%Total real estate exposure 39.3% 45.2% 42.0%
Construction 6.0% 35.8% 7.3%Large corporates 4.4% 44.7% 6.3%SME and small retailers and self-employed 5.4% 19.2% 7.8%Individuals 3.4% 13.8% 4.3%Other 0.6% - 1.1%Rest of loan book 4.0% 23.0% 5.4%
Total loan book and RE assets 9.3% 38.3% 13.3%
Coverage
Note:Include BMN-Penedés and Lloyds
13.3% of coverage of total loans and real estate assets
3535
Evolution of the Asset Protection Scheme portfolio
37
APS portfolio evolutionEuros in million
Changes to the APS portfolio Euros in million
RE assetsLoans Holdings in RE companies
Note: Excluding write-offs and guarantees
18,46013,892
4,663
5,782
504
494
Original situation Jun. 13
23,62720,168
Loans
Original situation 18,460Debt repayments -1,167Transfer to RE assets -3,155Write-offs -246June 2013 13,892
RE assets
Original situation 4,663Foreclosed/acquired 2,315Sales -1,228Valuation adjustment 32June 2013 5,782
*
*
* The difference between “transfer to RE assets” and “foreclosed/acquired” relates to the reduction in asset values
3636
The APS portfolio has an effective coverage level of 87.7%
38
Effective coverage of APS portfolioIn percentage
Current provisions:
APS guarantees
cover 80% of the non-
provisioned portfolio
Total effective
coverage: 87.7%
38.3%
Potential additional
provisions with no impact in
the P&L:49.4%
Total provisions of APS portfolio: €7.53 billion
Jun.13
Current provisions and APS guarantees cover 87.7% of the portfolio in a scenario with a loss
rate of 100%3737
39
5. Managing Real Estate assets
3838
40
Banco Sabadell has experienced an improvement in commercial activity …
Sales evolution
Euros in million Number of units
826
1,237
1H2012 1H2013
+50%
4,981
7,747
1H2012 1H2013
+56%
On track to reach 2013 sales targets:>16,000 units (+17% YoY) Sales totalling over €2.6 billion (+16% YoY)
3939Note: Sales data include real estate assets on balance sheet and financed real estate
… beating overall market trends
41
Number of transactionsUnits
Market Banco Sabadell
356,666 370,216
122,799 109,404
2011 2012 Jan-May2012
Jan-May2013
-11%
+4%
Source: Consejo General del Notariado
6,903
13,777
4,981
7,747
2011 2012 1H2012 1H2013
+2,0x
+56%
Some regions are seeing an increased market activity:In Alicante, Murcia and Tarragona, the number of transactions in the market has been growing in 2013
4040
Operating with an efficient sales model …
42
During the first six months 12 real estate developments ended up raising prices
Example: In Valencia 127 loft apartments where sold with a final 15% increase over the original offer price
13% of sales through auction processes1
Average price increases in auctions: 18.3% (Final price vs. original selling price)
Price setting
Matching demand
Sales to foreign buyers increase by 183% YoY, now representing more than 10% of total transactions
New web page in Russian has been launched
70% of sales with no financingLocal buyers are being more active
1) When an offer on the real estate web page Solvia receives two or more offers during the first 5 days of being offered an auction process is set up
4141
… with solid results from the second big marketing campaign 2013
43
Mainly focused on second hand properties Discounts levels where kept unchangedFinancing option for more solvent customers1 month after the start of the marketing campaign1:• 1,455 offers being formalised• Waiting list of more than
1,750 buyers
The cover of the real estate magazine Moment June 2013 and an example of the most recent sales campaign
1) Until 5th of July4242
44
45
Annex
4444
Incorporation of new businesses
46
Contribution from the incorporation of BMN-Penedés and Lloyds Spain. June 2013. Euros in million
Penedés Lloyds
Net interest income 7.3 --
Commissions 4.4 --Trading income and Forex 0.8 --Other operating results 0.1 --Gross Operating Income 12.6 --
Personnel Costs -7.8 --Administrative Costs -2.4 --Depreciations -0.6 --Pre-provisions Income 1.8 --
Gross loans to customers ex repos 9,778.4 1,625.1On-balance sheet customer funds 8,516.5 739.7
4545