investor presentation 2013 english - basler...
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Investor Presentation 2013Basler Kantonalbank
Our aim is the sustainable and permanent communication with investors and analysts.
Page 2 | © Basler Kantonalbank
Agenda
1. Financial figures
• BKB Group
• Parent Company Basler Kantonalbank
2. Focal Points
3. Positioning in the BKB Group
4. Objectives 2015
5. BKB Participation Certificate
Page 3 | © Basler Kantonalbank
Agenda
1. Financial figures
• BKB Group
• Parent Company Basler Kantonalbank
2. Focal Points
3. Positioning in the BKB Group
4. Objectives 2015
5. BKB Participation Certificate
• Parent Company Basler Kantonalbank
2. Focal Points
Page 4 | © Basler Kantonalbank
BKB Group: Key Figures
+4.9%13‘56014’230Loans to customers
-0.8%47‘16046’802Total customers assets
+1.2%25’63625’951Customer deposits
+2.5%3’0633’139Declared equity
38‘760
206’896
293’638
31.12.2011
+0.9%39’128Total assets
+28.0%376’000Gross profit
+23.6%255’728Group profit
Change31.12.2012in CHF m
Page 5 | © Basler Kantonalbank
BKB Group: Derivation of Gross profit
in 1000 CHF
Net profit from interest transactions 369'086 372'114 -0.8%Net profit from fees and commissions 182'672 183'261 -0.3%Profit from trading operations 123'985 65'237 90.1%Net other ordinary profit 19'039 4'937 --
Operating profit 694'782 625'549 11.1%
Personnel expense -197'952 -203'968 -2.9%General administrative expense -120'830 -127'943 -5.6%
Net operating expense -318'782 -331'911 -4.0%
Gross profit 376'000 293'638 28.0%
FY2012
FY2011
Change in %
Cost-Income-Ratio I: 45.9%
Page 6 | © Basler Kantonalbank
BKB Group: Derivation of Group profit
in 1000 CHF
Gross profit 376'000 293'638 28.0%
Depreciation, write-offs fixed assets -19'868 -24'964 -20.4%Value adjustments, provisions and losses -82'974 -27'095 --
Operating results 273'158 241'579 13.1%
Guarantor settlement -25'627 -21'036 21.8%
Profit, pre-tax 247'531 220'543 12.2%
Extradordinary income 29'157 4'220 --Extraordinary expense 0 0 --Taxes -20'960 -17'867 17.3%
Group profit 255'728 206'896 23.6%of which minority interests in the Group profit 26'992 23'705 13.9%
FY2012
FY2011
Change in %
*
*plus 50 m CHF because of the ASE case
Page 7 | © Basler Kantonalbank
BKB Group: Segment information 2012, in CHF m Retail
BankingPrivate
BankingCommercial
BankingTrading
DepartmentCorporate
CenterTotal
Net profit from interest transactions 166.1 38.5 112.2 2.1 50.2 369.1Net profit from fees and commissioins 61.9 81.2 18.7 7.1 13.8 182.7Profit from trading operations 12.7 11.4 1.9 85.9 12.1 124.0Net other ordinary income – – – – 19.0 19.0Operating income 240.7 131.1 132.8 95.1 95.1 694.8
Personnel expense -38.9 -21.8 -19.8 -13.4 -104.1 -198.0General administrative expense -2.6 -5.2 -1.3 -4.3 -107.4 -120.8Internal cost allocation -30.7 -9.7 -6.0 -6.8 53.2 -Net operating expense -72.2 -36.7 -27.1 -24.5 -158.3 -318.8
Gross profit 168.5 94.4 105.7 70.6 -63.2 376.0
Depreciation, write-offs fixed assets – – – – -19.8 -19.8Value adjustments, provisions and losses -15.3 -4.3 -37.0 -0.1 -26.3 -83.0
Operating profit 153.2 90.1 68.7 70.5 -109.3 273.2
Guarantor settlement -25.6Profit, pre-tax 247.6
Extraordinary income 29.1Extraordinary expense –Taxes -21.0Group profit 255.7
Page 8 | © Basler Kantonalbank
BKB Group: Risk situation trading book
136’212
19’594’182
59’751’977
3’194’339
70’979’738
31.12.2011
10’138’22116’752’991VaR equities
86’47585’503VaR commodities
61’756’934
3’036’649
64’414’251
31.12.2010
30’563’999VaR interest rates
56’640’513VaR trading book
13’154’518VaR currencies
31.12.2012in CHF
Value at Risk* in the trading book forthe various risk categories(Holding period 1 year, 99% confidence interval)
* The Value-at-Risk (VaR) represents the estimated loss of a portfolio that is not exceeded with a givenprobability (confidence interval) for a predetermined holding period.
Page 9 | © Basler Kantonalbank
BKB Group: Risk situation banking book
- 216’393
1’439’850
2’737’919
- 4’394’162
31.12.2011
-91’134
1’497’241
3’026’648
-4’615’024
31.12.2012
-320’473Total sensitivity
1’269’942
2’068’081
3’658’495
31.12.2010
Investments of share capital and reserves
Fixed-interest positions
Variable positions and sight deposits
Interest-rate sensitivity* of the banking book(in CHF per basis point increase)
* The interest-rate sensitivity is measured as the present value of the gain/loss that occurs when theinterest rate is increased by one basis point. A basis point equals 0,01 percent.
Page 10 | © Basler Kantonalbank
Agenda
1. Financial figures
• BKB Group
• Parent Company Basler Kantonalbank
2. Focal Points
3. Positioning in the BKB Group
4. Objectives 2015
5. BKB Participation Certificate
Page 12 | © Basler Kantonalbank
Parent Company Basler Kantonalbank: Key Figures
* adjusted (without IT migration)
+1.3%79,780,7Annual profit
+3.8%2’5682’666Declared equity (after distribution of profits)
+15.2%222,6256,5Gross profit
30’037
9’512
12’963
25’378
31.12.2011
+2.0% 9’703Customer deposits
-3.3%29’052Mortgages
-1.6%24‘966Total assets (beforedistribution of profits)
+0.1%12‘971Loans to customers
Change31.12.2012in CHF m
Page 13 | © Basler Kantonalbank
Parent Company Basler Kantonalbank: Loans to customers
MortgagesOther amounts due from customers
8'902 9'512 9'703
3'1133'451 3'269
0
2'000
4'000
6'000
8'000
10'000
12'000
14'000
2010 2011 2012
in CHF m 12‘96312‘016 12‘971(+947) (+8)
+0.1%+7.9%
Seite 14 | © Basler Kantonalbank
30'037971
756
29'052
- 2'711
26'000
26'500
27'000
27'500
28'000
28'500
29'000
29'500
30'000
30'500
31.12.2011 NNM 1. Sem. 2012 NNM 2. Sem. 2012 Perf./Zinsen/Geb./Div. 31.12.2012
in Mio. KundenvermögenPerf./Zinsen/Geb./Div.
NNM-Abfluss
NNM-Zufluss
-2‘711
971
75630‘037
29‘052
Parent Company Basler Kantonalbank: Total customers assets & Net New Moneyin CHF m
Perf./interests/fees
Total customers assets
Performance/interests/fees
Net New Money outflow
Net New Money inflow
Page 15 | © Basler Kantonalbank
Parent company Basler Kantonalbank:Income structure
Net profit from trading operations
Net profit from fees and commissions
Net profit from interest transactions
Operating profit: 446 m CHF
Net other ordinary profit
48%
25%
22%
5%
Page 16 | © Basler Kantonalbank
Parent Company Basler Kantonalbank:Profit Statement 2012
in 1000 CHF
Net profit from interest transactions 213'667 216'357 -1.2%Net profit from fees and commissions 113'617 116'584 -2.5%Profit from trading operations 98'679 52'684 87.3%Net other ordinary income 20'249 27'981 -27.6%
Operating income 446'212 413'606 7.9%
Personnel expense -124'201 -122'079 1.7%General administrative expense -65'528 -68'957 -5.0%
Net operating expense -189'729 -191'036 -0.7%
Gross profit 256'483 222'570 15.2%
FY2012
FY 2011
Change in %
Cost-Income-Ratio I: 42.5%
Page 17 | © Basler Kantonalbank
Parent Company Basler Kantonalbank:Profit Statement 2012in 1000 CHF
Gross profit 256'483 222'570 15.2%
Depreciation, write-offs of fixed assets -12'874 -15'459 -16.7%Value adjustments, provisions and losses -77'442 -26'054 --
Operating profit 166'167 181'057 -8.2%
Guarantor settlement -25'627 -21'036 21.8%
Profit, pre-tax 140'540 160'021 -12.2%
Extraordinary income 74'947 26'171 --Extraordinary expense -132'800 -104'877 26.6%Taxes -2'025 -1'659 22.1%
Annual profit 80'662 79'656 1.3%
FY2012
FY2011
Change in %
*
*
* davon 50 Mio. CHF für Fall ASE
Page 18 | © Basler Kantonalbank
capitalisation (as of 31.12.2012)
7.73%.8.48%.Leverage Ratio
15.3%.16.2%.Tier-1-Ratio
191%.202%.Equity coverage ratio
3,14 bn CHF 2).2,67 bn CHF 1).Declared equity
Group BKB.Parent Company BKB.
1) after distribution of profits2) of which minority interests in the Group profit
Page 19 | © Basler Kantonalbank
Agenda
1. Financial figures
• BKB Group
• Parent Company Basler Kantonalbank
2. Focal Points
3. Positioning in the BKB Group
4. Objectives 2015
5. BKB Participation Certificate
Page 20 | © Basler Kantonalbank
Swissbanking in change
• Euro dept crisis• Volatile markets• Increasing regulation• Tax agreement/disclosure• Implementation FATCA• Strategies for legitimate money• Overheating of the real estate
market
decreasingcustomerassets
decreasingfees and earnings
1
2
increasingcosts3
Page 21 | © Basler Kantonalbank
Priority
Pri
ori
ty
Reputation
and Trust
Risk provision Risk preventionBuilding up
the strengths
Page 23 | © Basler Kantonalbank
2. Risk prevention
• Improve risk culture as well as management and incentivesystems
• Strengthen Compliance/Governance
• Cross Border Business
• Checking business domain strategies
Page 24 | © Basler Kantonalbank
3. Building up the strengths
• Review Group-/ Bankstrategy
• Organisation development
• Cost reduction und use of synergies
• Systematization of sales process
Page 25 | © Basler Kantonalbank
Private Banking receives seventhconsecutive award
In the top 30 among400 institutes
Page 26 | © Basler Kantonalbank
Industrialisation of the credit process
Starting position Set-up and Centralisation Start of the optimisation
creditcredit--highwayhighway
Processes
The way to the central credit processing in the Group
t
Page 28 | © Basler Kantonalbank
Agenda
1. Financial figures
• BKB Group
• Parent Company Basler Kantonalbank
2. Focal Points
3. Positioning in the BKB Group
4. Objectives 2015
5. BKB Participation Certificate
Page 29 | © Basler Kantonalbank
BKB Group: 7th largest Swiss Bank Group
1’259’232
924‘187
168‘124
150‘694
54‘868
39‘800
39‘129
37‘804
27‘638
28‘044
Reduced by factor 5
St. Galler KB
Luzerner KB
Migros Bank
Group BKB
BC Vaudoise
Credit Suisse Group
UBS
Raiffeisen
Zürcher KB
Julius Bär Holding
Total assets by end of
2012 (in CHF m)
Page 30 | © Basler Kantonalbank
Positioning of Basler Kantonalbank
A rather untypical cantonal bank with strong income diversification(geographical constraints)
Need to stand out from other banks with regard to:• Top-quality professional banking• Countrywide activities and presence• Dynamism, efficiency
In sum:Sharpen our profile
Page 31 | © Basler Kantonalbank
Positioning of Bank Coop
National retail bank (towns, conurbations)
Prosperity with integrity
Sustainability / equivalence
Excellent client orientation & service quality
Coop / Supercard
In sum:Strengthen our positioning
Page 33 | © Basler Kantonalbank
Strategic thrusts
Clients IncomeSegmentMarket
Territory
Private Clients, SME
Private Banking
Private Clients, SME
Firms, Institutionals, Banks
NWCH
CH
CH
CH
Page 34 | © Basler Kantonalbank
Agenda
1. Financial figures
• BKB Group
• Parent Company Basler Kantonalbank
2. Focal Points
3. Positioning in the BKB Group
4. Objectives 2015
5. BKB Participation Certificate
Page 35 | © Basler Kantonalbank
Based on our mandate as a cantonal bankand our responsibility as a bank in Northwest Switzerland, we as the BKB Group strive for a strong competitive positionas a full-service bank in Switzerland.
We are committed to „Fair Banking“ for all stakeholders and want sustainable addedvalue for clients, owners, and employees.
VISION
Group Vision 2015
Page 36 | © Basler Kantonalbank
Strategic Objectives 2015BKB Group
EfficiencyCost-income-ratio < 45%
ProfitabilityRanked 6th in terms of gross profit
LargenessRanked 5th – 7th in terms of total assets
Page 37 | © Basler Kantonalbank
Agenda
1. Financial figures
• BKB Group
• Parent Company Basler Kantonalbank
2. Focal Points
3. Positioning in the BKB Group
4. Objectives 2015
5. BKB Participation Certificate
Page 38 | © Basler Kantonalbank
0
50
100
150
200
250
300
Dez.02
Dez.03
Dez.04
Dez.05
Dez.06
Dez.07
Dez.08
Dez.09
Dez.10
Dez.11
Dez.12
Source: Bloomberg
BKB Participation Certificateindexed
10-Jahresperformance (incl. dividend)
BKB-PC: +85.64% (+6.38% p.a.)SPI-Bank-Index: -23.71% (-2.67% p.a.)
SPI-Bank-Index
BKB-PC
Page 39 | © Basler Kantonalbank
Market capitalization (as of 15.05.2013)
Source: FuW-Aktienführer online
4,39Banque Cantonale Vaudoise5.6,13Partners Group4.
3,15Luzerner Kantonalbank6.
2,41Berner Kantonalbank10.
Market valuein CHF bnRank
2,75Basler Kantonalbank9.
8,60Julius Bär Holding3.
2,89Graubündner Kantonalbank7.GAM Holding
Credit Suisse GroupUBS
2,898.
45,312.65,69 1.
Page 40 | © Basler Kantonalbank
Dividend (gross)
3.30 CHF per BKB Participation Certificate
The dividend will be paid out on June 5, 2013.
Dividend payout
Page 41 | © Basler Kantonalbank
Participation Certificate Basler KantonalbankKey Figures
3’959132,402011
2’969Mio. CHFMarket capitalization at year-end
99,302012
CHFMarket price at year-end
inExchange-rate statistics
20112012inKey figures per Partizipation Certificate
1,55
20,56
21,962,49
85,662,66
6,06
7,44
88,65CHFBook value
3,32%Dividend yield
17,78%Pay-out-ratio
13,91Price-earnings-ratio
1,12Price-book-ratio
2,70
5,56
8,58
CHFAnnual profit (Earnings per share)
CHFGross profit adjusted (without IT migration)
CHFOperating profit adjusted (without IT migration)
Page 42 | © Basler Kantonalbank
Caution regarding forward-looking statements
- This communication contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to the implementation of strategic initiatives, such as the expansion in private banking, and other statements relating to our future business development and economic performance.
- While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a 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, macro-economic, governmental and regulatory trends, (2) movements in local and international securities markets, currency exchange rates and interest rates, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or creditworthiness of our customers, obligors and counterparties and developments in the markets in which they operate, (6) federal and local legislative developments, (7) management changes and changes to our Business Group structure.
- Basler Kantonalbank is not under any obligations to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.
Disclaimer
Page 43 | © Basler Kantonalbank
Basler KantonalbankHead of General Secretariat / Media Office / IRDr Michael BuessP.O. BoxCH-4002 Basel
Direct line 061 266 29 77Fax 061 266 26 40E-mail [email protected]
www.bkb.ch
Contact Details