binckbank n.v. · 3 binckbank n.v. analyst & investor call fy16 results, amsterdam, 6 february...

1 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017

ANALYST & INVESTOR CALL FY16 RESULTS

Amsterdam, February 6, 2016

Vincent Germyns, Chairman of the Executive Board

Evert Kooistra, Board Member, Chief Financial & Risk Officer

BinckBank N.V.

Highlights16Q4

Businessupdate

Financialposition

Wrap upand Q&A

AGENDA

BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 20172


HIGHLIGHTS 16Q4

Eventful 16Q4, significantly volatile and strong quarter

- Higher trading volumes

- Increased revenues per trade € 11.09 (16Q3: €10.25)

- Number of transactions 2.0m (16Q3: 1.8m or +13%)

- Income from operating activities increased with 16% vs 16Q3

One-off charges of € 4.5m:

- Impairment on investment in TOM had a negative effect of € 1.7m on adjusted net

profit

- Settlement Alex claims € 2.75m (before tax), settlement materially de-risks Alex

Adjusted net result € 7.5m (+11% vs 16Q3)

Adjusted net earnings per share € 0.11

Proposed final dividend € 0.19 per share

Highlights16Q4

Businessupdate

Financialposition

Wrap upand Q&A

AGENDA



THE NETHERLANDS• Transactions in 16Q4: 1.4m +12% (16Q3: 1.3m)

• Income from operating activities in 16Q4: +17% € 31.5m (16Q3: € 26.9m)

• Result from operating activities in 16Q4: + 7% € 17.0m (16Q3: € 15.8m)

• Average net income per transaction in 16Q4: +11% €12.35 (16Q3: € 11.12)

Business FY16:

• Number of transactions FY16: 5.6m

• Income from Binck turbos +36%

• Growth of almost € 1bn in AuA of Independent Asset managers to € 7.4bn

• AuM Alex Asset Management decreased in 16Q4 to € 1.3bn (outflow € 160m)

• Launched “Switch Position”, a new trading functionality in Pro and 360.

24

26

28

30

32

15Q4 16Q1 16Q2 16Q3 16Q4

mill

ion

s

Income from Operating Activities

-

5

10

15

20

15Q4 16Q1 16Q2 16Q3 16Q4

mill

ion

s

Result from Operating Activities

1.1

1.2

1.3

1.4

1.5

1.6

15Q4 16Q1 16Q2 16Q3 16Q4

mill

ion

s

Transactions NL


BELGIUM

• Transactions in 16Q4: +14% 168,901 (16Q3: 147,578)


• Result from operating activities in 16Q4: +19% € 0.9m (16Q3: € 0.8m)


Business FY16:

• Speculation tax in 2016 had a negative impact on transaction volumes and was abolished as per 1 January 2017

• Marketing campaign for trading in October. Brand awareness amongst investers increased significantly

0

50

100

150

200

250

15Q4 16Q1 16Q2 16Q3 16Q4

Th

ou

san

ds

Transactions BE

2.2

2.4

2.6

2.8

3.0

15Q4 16Q1 16Q2 16Q3 16Q4

Mill

ion

s

Income from Operating

Activities

0.0

0.5

1.0

1.5

15Q4 16Q1 16Q2 16Q3 16Q4

Mill

ion

s

Result from Operating

Activities


FRANCE



• Result from operating activities in 16Q4: -106% flat (16Q3: € 0.5m)

• Average net income per transaction in 16Q4: -9% €5.84 (16Q3: € 6.42)

Business FY16:

• New Management Team in place

• Top 10 customer event to gather feedback from very active customers

• Renewed partnership with ProRealTime and free trade operations

0

50

100

150

200

250

300

15Q4 16Q1 16Q2 16Q3 16Q4

Th

ou

san

ds

Transactions FR

1.90

1.95

2.00

2.05

2.10

15Q4 16Q1 16Q2 16Q3 16Q4

Mill

ion

s

Income from Operating Activities

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

15Q4 16Q1 16Q2 16Q3 16Q4

Mill

ion

s

Result from Operating Activities


ITALY



• Result from operating activities in 16Q4: +182% € 0.1m (16Q3: € 0m)


Business FY16:

• Active high quality customer base

• Partnership with Banca Ifigest: BinckBank is reseller for Fundstore

0

20

40

60

80

100

120

140

160

15Q4 16Q1 16Q2 16Q3 16Q4

Th

ou

san

ds

Transactions IT

0.0

0.2

0.4

0.6

0.8

1.0

15Q4 16Q1 16Q2 16Q3 16Q4

Mill

ion

s

Income from Operating

Activities

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

15Q4 16Q1 16Q2 16Q3 16Q4

x 1

00

00

0

Result from Operating

Activities


/ ‘Binck Savings’ – NetherlandsProviding easy access to the European savings market

/ ‘Asset Management’ – BelgiumDigital investment solution for accessible wealth management

/ Agile Transformation Programme and Design ThinkingTo reduce time to market and to increase customer focus

STRATEGIC ROADMAP

N E W I N I T I AT I V E S 1 6 Q 4


NETHERLANDS: ‘BINCK SAVINGS’

TIMELINE / Partnership with back-end partner Safened in 16Q3

/ Pilot with selected Dutch clients in 16Q4

• Minimum Viable Product (MVP)

• Gain insights into customer experience

• Update Binck app -> monitor deposits on smartphones

/ Search for partnerships with banks who seek funding (ongoing)

/ Expected market introduction in NL 17H1


BELGIUM: ‘D ISCRET IONARY ASSET MNGT ’ (1 /2 )

VALUE PROPOSITION / Asset management solution accessible for mass affluent (> €25k and 5 yrs horizon)

Low minimum investment

Asymmetric risk model

Personal investment plan

Diversification of risk: funds contain Exchange Traded Funds (ETFs)

The use of underlying ETFs makes it cost effective

Transparent pricing structure (0.6%)

Asset Management Market in Belgium: 279bn (source: BEAMA)

CLIENT FOCUS

/ Investors looking for digital discretionary asset management

/ Online onboarding tool


BELGIUM: ‘D ISCRET IONARY ASSET MNGT ’ (2 /2 )

/ Benefits for Binck:

Recurring income based on assets

/ Costs for Binck:

Limited amount of people, optimization of the platform and marketing

expenses

/ Introduced in Belgium in 16Q4

/ Start first marketing campaign in January 2017:

Goal: brand and product awareness

/ Roadshow for personal client interaction in cities throughout Belgium in 17Q1

BENEFITS & COSTS

TIMELINE

Highlights16Q4

Businessupdate

Financialposition

Wrap upand Q&A

AGENDA



IMPAIRMENT THE ORDER MACHINE (TOM)

On the 20th of October 2016, TOM shareholders have

agreed to actively support TOM in finding a new strategic

partner that will enable TOM to realise the next step in

its development.

Pending the outcome of this process, BinckBank has

fully impaired its investment in TOM, resulting in a one-

off additional charge of €1.7 million.

Net interest income 16Q4 € 7.2m

Size Dutch residential mortgage book: 16Q4 € 520m, avg yield 185 bps

Expect to grow the mortgage book to approx. € 750m by end 17Q3

16Q4 interest income derived from mortgages € 2.1m (FY16: € 3.7m)


NET INTEREST INCOME (1/2)

6.2 6.4 5.86.9 7.2

0123456789

10

15Q4 16Q1 16Q2 16Q3 16Q4

€ m

illio

ns

NET INTEREST INCOME

0 1 12

404

520

0

100

200

300

400

500

15Q4 16Q1 16Q2 16Q3 16Q4

€ m

illio

ns

MORTGAGE BOOK

Collateralised loans 16Q4 € 438m (16Q3: € 475m)

Average yield on collateralised loans: approx. 369 bps (3.69%)

Investment portfolio € 1.5bn (16Q3: € 1.6bn)

Average yield investment portfolio 43 bps (0.43%)


NET INTEREST INCOME (2/2)

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

15Q4 16Q1 16Q2 16Q3 16Q4

€ m

illio

ns

INTEREST INCOME DRIVERS

Mortgages

Collateralised lending

Inv. Portfolio

Banks

Cash

1.9 1.9 1.8 1.61.5

502 453 479 475 438

-

100

200

300

400

500

600

15Q4 16Q1 16Q2 16Q3 16Q4

€ m

illio

ns

COLLATERALISED LENDING


NET FEE AND COMMISSION INCOME

0.0

0.5

1.0

1.5

2.0

2.5

15Q4 16Q1 16Q2 16Q3 16Q4

€ m

illio

ns

TRANSACTIONS

Transactions IT

Transactions FR

Transactions BE

Transactions NL

2.01.81.9

2.12.0

20.3 20.5 18.6 18.022.1

7.13.6

3.4 3.5

3.6

3.23.7

4.9 3.2

3.9

-

5

10

15

20

25

30

35

40

15Q4 16Q1 16Q2 16Q3 16Q4

€ m

illio

ns

NET FEE & COMMISSION INCOME

Transaction related Asset management Other

27.8 26.924.8

29.630.6

Average net fee per transaction 16Q4 € 11.09 (16Q3: € 10.25 or +8%). Increase = € 0.84 per transaction

Net outflow Alex AM € 160m (16Q3: 78m)

Assets under management € 1.280m

19

ADJUSTED OPERATIONAL EXPENSES 16Q4

12.7 13.5 12.5 12.0 13.6

12.5 13.614.1 15.5

17.2

1.3 1.2 1.1

1.1

0

5

10

15

20

25

30

35

40

15Q4 16Q1 16Q2 16Q3 16Q4

€ m

illio

ns

Employee expenses Other operational costs Depreciation and amortisation

27.8

31.9

28.528.426.8



ADJUSTED OPERATIONAL EXPENSES FY16

56.6 53.0 51.6

6.25.7 4.7

57.150.1 60.3

0

50

100

150

2014 2015 2016

€

mill

ion

s

Other operating costs Depreciation and amortisation Employee expenses

119.9

108.9116.6


INCREASE OTHER OPERATING COSTS €10.2M

IFRS Equity FY16 € 397.0m (FY15: € 437.5m)

Tier 1 Capital FY16 € 245.5m (FY15: € 253.6m)

Capital ratio FY16 31.9% (FY15: 40.2%).

Leverage ratio FY16 6.7% (FY15: 7.1%)

22

FINANCIAL POSITION

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Le

vera

ge

ra

tio

Ca

pit

al r

ati

o

Total Capital Ratio (Pilar 1) Leverage Ratio (LR)

0

50

100

150

200

250

300

15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4

€ m

illio

ns

Available capital LR3% LR4% LR5%

AVAILABLE CAPITAL VS REQUIRED CAPITAL CAPITAL & LEVERAGE RATIO


Highlights16Q4

Businessupdate

Financialposition

Wrap upand Q&A

AGENDA



1) The four 2016 targets have been achieved:

1. All retail activities are now on the same platform after the French migration in

16Q1

2. Introduction of new discretionary asset management service in Belgium in 16Q4

3. New Binck Savings service in NL. Pilot with selected Dutch clients in 16Q4 and

expected market introduction in 17H1

4. Investment of € 500m in Dutch residential mortgages. End 2016 € 520m

invested.

2) Settlement Alex claims ends uncertainty around pending claims

3) In Redesign Binck phase further transforming the business on all levels.

Thank you!

WRAP UP FOLLOWED BY Q&A

binckbank n.v. · 3 binckbank n.v. analyst & investor call fy16 results, amsterdam, 6 february...

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