AIK Banka - Vladimir Cupic

Company Presentation
Belgrade, May, 2014
Basic data:
Name:
Agroindustrijsko komercijalna banka “Aik Banka” ad Niš
Adress:
Nikole Pašića 42,
18000 Niš,
Republika Srbija
Web:
www.aikbanka.rs
Legal form:
Public Shareholding Company
Legal status:
Active business company
ID:
06876366
Tax No.
100618836
Business Account:
Central bank of Serbia - 908000000001050197
Date of establishment:
10.08.1993.
Business companies registry No.
2946/2005 from March 01st, 2005
Code of conduct:
6419 – Other monetary intermediary
Phone:
00 381 11 31 22 051
Fax:
00 381 11 202 9086
e-mail:
[email protected]; [email protected]
CEO:
Vladimir Čupić
Listing on Stock Exchange:
Belgrade Stock Exchange, www.belex.rs
Shares are registered and
shareholders list is available:
Auditor:
Central securities depository and clearing house of Serbia ,www.crhov.rs
KPMG doo Beograd, Kraljice Natalije 11, Belgrade, www.kpmg.com
Market share
Ranking
31.12.2013
Rank by
Total Assets
Gross loans
Net loans
Deposits
Profit
Rank
7
8
9
7
8
Market
Share
5,4%
4,6%
4,1%
5,7%
n/a
Amount in EUR
million
1.329
716
577
841
11
31.12.2012
Rank
Market Share
8
8
9
6
5
5,4%
4,3%
3,9%
5,8%
15,3%
Market share – Total Assets
AIK Banka is belongs to top 10
banks
on
Serbian
market
according to all parameters.
Main strategic goal is to achieve
long term rate of return on
assets higher than 2%.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Amount in EUR
million
1.357
713
600
858
35
(as of December 31st, 2013)
Total Assets
(in 000 RSD)
427.241.355
Banca Intesa a.d. Beograd
363.654.367
Komercijalna banka a.d. Beograd
251.953.242
Unicredit Bank Srbija a.d. Beograd
220.913.478
Société Générale banka Srbija a.d. Beograd
205.492.743
Raiffeisen banka a.d. Beograd
158.041.420
Eurobank ad Beograd
152.401.643
AIK banka a.d. Niš
125.394.026
Hypo Alpe-Adria-Bank a.d. Beograd
108.860.402
Vojvođanska banka a.d. Novi Sad
99.559.603
Banka Poštanska štedionica a.d. Beograd
Remaining 21 Bank
732.712.168
TOTAL: 2.846.224.447
Bank
Source: National Bank of Serbia
Market
Share
15,01%
12,78%
8,85%
7,76%
7,22%
5,55%
5,35%
4,41%
3,82%
3,50%
25,74%
100,00%
Benchmarking and Ratio Analysis - 2013
Profitability & Efficiency Ratios - end of 2013
Balance Sheet Ratios – end of 2013
Ratio
Profit/ Average Equity ("ROAE")
Profit/ Average Assets ("ROAA")
Interest Margin / Average Assets
Interest revenue/ Average assets
Interest expense/ Average assets
Loan loss provisions/ Average Assets
Interest expense/ Average interest liabilities
Commissions Margin / Average Assets
Commissions revenue / Average Assets
Profit / Total Revenue ("Profit Margin")
Profit before provisions/ Average assets
Total revenue / Average assets
Operating expense / Average assets
Operating expense /Operating Income
(Cost/income ratio)
Operating expense/ (Interest revenue+
Commission revenue)
Personnel expense/Average assets
Interest revenue/ Total revenue
Commission revenue/Total revenue
Ratio
Net loans in net assets
Loans reserves/ Gross loans ("Asset
quality")
Cash and cash equivalents and Deposits
whit NBS / Net Assets (Liquidity")
Deposits whit NBS/Net assets
Capital/Net assets
Deposits/ Net assets (Primary funds")
Net Loans/ Deposits
Transaction deposits/ Deposits
•
•
•
•
•
•
AIK
2.5%
0.8%
4.3%
7.6%
3.3%
2.6%
4.9%
0.4%
0.5%
9.3%
3.4%
8.7%
1.9%
35.6%
Peer*
5.2%
1.1%
4.3%
6.8%
2.5%
1.8%
3.2%
1.2%
1.6%
12.4%
2.9%
8.9%
3.1%
51.6%
Sector
-0.1%
0.0%
4.2%
6.9%
2.7%
2.1%
3.4%
1.2%
1.7%
-0.2%
2.0%
9.2%
3.8%
64.9%
23.2% 37.1%
43.8%
0.5%
88.0%
5.9%
1.5%
75.6%
18.2%
1.2%
76.4%
17.6%
ROE is on Sector Average (High capital base)
ROA is above average
Interest income is the generator of the revenues
Fee and Commission income are source of huge potential
for future business development
High Interest expense led to the change in pricing policy
Low level of operating costs and personnel costs are the
comparative advantage of Aik Banka
•
•
•
AIK
43.4%
19.4%
22.2%
14.5%
33.8%
63.2%
68.7%
9.2%
Peer
Sector
58.9% 56.8%
8.6% 10.6%
23.0%
23.8%
14.1% 14.3%
21.3% 20.9%
57.7% 60.5%
102.1% 93.9%
31.5% 28.8%
Strong capital base (above average Capital/Net Assets)
Loan reserves are providing additional strength to the
Bank
Loan to Deposit ratio is one of the lowest on the Market
* The Peer group comprises: Intesa, Komercijalna banka, Unicredit, Raiffeisenbank, Societe General, Eurobank, Hypo, Erste, Sberbank
Main changes (2013 & 2014)
•
Management
During 2013 new Executive Board was appointed. Mr. Čupić Vladimir was elected as the CEO, Mr. Siniša
Mihajlović was appointed as the CFO, Ms. Ana Marković as the CRO of the Bank and Ms. Branka Damnjanović
as the CORO.
•
Ownership
During February 2014 Sunoko doo Novi Sad published Takeover Bid to all shareholders on . The offer for
taking over of shares was opened on 4 February 2014 and lasted 21 days. The bidder has acquired together
with the controlled companies 4,556,494 ordinary shares with voting rights or 50.37% of the total number of
issued shares with voting rights.
•
Organization
New business model was introduced in 2013 putting more focus on Risk Management, clear client
segmentation and planning and cost controlling. PR and IR are established. Prart of back office functions
were centralized. All this led to the changes in Organization and Job description.
•
Financials
• Asset Structure
Major changes happened in structure of liquid assets. The excess liquidity was invested in T-bills and Bonds
and Securities increased for EUR 43 million. There was slight decrease in total loans invested for and at the
end of 2013 they amounted EUR 653 mil.
• Liabilities & Capital
Bank has stable and strong deposit base of cca EUR 850 mil. Capital is providing additional stablitity to the
bank. CAR is the highest on market and amounts to 38,05%.
• Income Statement
Bank realized profit of EUR 10,7 mil. in 2013, despite the negative overall business result of the banking
sector.
Financials 2013
Description
31.12.13
31.12.12
31.12.11
1
2
3
Index
4=1/2
5=2/3
7=1/3
Income Statement (in 000 RSD)
Net Interest income
6,736,173
7,540,896
6,351,357
89.33
118.73
106.06
657,119
782,771
932,961
83.95
83.90
70.43
826,12
1,847,207
1,122,211
44.72
164.60
73.62
8,219,411
10,170,874
8,406,529
80.81
120.99
97.77
Salary Costs
-784,869
-715,639
-671,177
109.67
106.62
116.94
Amortization
-264,391
-243,158
-190,416
108.73
127.70
138.85
Other operative Costs
-1,879,935
-1,747,690
-1,602,322
107.57
109.07
117.33
Total Operative Costs
-2,929,194
-2,706,487
-2,463,916
108.23
109.84
118.88
5,290,217
7,464,387
5,942,613
70.87
125.61
89.02
-4,035,607
-3,454,559
-2,628,712
116.82
131.42
153.52
1,254,611
4,009,827
3,313,901
31.29
121.00
37.86
634,184
4,421,349
6,415,508
14.34
68.92
9.89
Loans and placement with clients
74,291,658
77,362,198
73,382,906
96.03
105.42
101.24
Securities
Other Assets
33,988,821
20,835,176
8,100,645
163.13
257.20
419.58
43,486,978
51,733,620
55,294,480
84.06
93.56
78.65
Total Assets
152,401,642
154,352,343
143,193,539
98.74
107.79
106.43
1,292,730
4,202,665
4,253,359
30.76
98.81
30.39
95,285,111
95,696,104
87,448,322
99.57
109.43
108.96
4,330,107
4,191,561
4,661,555
103.31
89.92
92.89
Capital
26,920,470
26,517,651
26,210,090
101.52
101.17
102.71
Total Capital
51,493,695
50,262,013
46,830,303
102.45
107.33
109.96
Net fees and commissions income
Other non interest income
Total Revenues
Profit before provisions
Net effect from provisioning
Profit before tax
Assets and Liabilities (in 000 RSD)
Loans and placement with banks
Deposits and Loan from Banks
Other Deposits
Other Liabilities
New Strategy - 7 Pillar Model
ORGANISATION
Creation of
Internationally
recognizable
system
SALES
Based on new
sales function
PRICING
System of values:
Risk based pricing
1. Safe
2. Efficient
PORTFOLIO
COST CONTROL
Diversification &
New client tagets
Centralisation
and Budget Limits
3. Proffitable
4. Sustainable
5. Reliable
FUNDING
Diversification&
New funding
sources
RISK
MANAGEMENT
Managing – not
avoiding risk
Strategic goals 1/2
•
Internationally recognizable system of:
•
•
Organization - Divided functions such as sales and administration of
Sales targets
loans, financial and risk controlling, management and monitoring of
credit risk .
•
business segments,
organizational units, sales
staff
Functioning model - Divided functions such as: sales and
administration of loans, financial and risk controlling, management and
monitoring of credit risk, Centralization of Cost Management.
•
Sales management:
Policies and procedures - Improved system of sales and risk
•
•
•
Flexibility:
•
Mass operations (retail and SME) - Standard processes and
procedures of the loans and contracts approval, controlling the use of
funds, validity and enforceability of collaterals, payments control; Risk
return principle; Limited number of variables that quantify risk;
Defined cap of risk acceptability; Delegation of decision-making rights
within the zone of risk acceptability; Adequate technical and IT
solutions for mass operations; Developed system of internal control and
control of fraudulent activities; Permanent monitoring of the quality of
portfolio; Permanent control of profitability and price alterations
(interests and fees) and model of risk acceptability; Centralized system
of debt collection, restructuring and bad loans workout
•
•
Key principle: MANAGING, not AVOIDING risk
Developed process of monitoring of potential bad loans (Watch loan)
A decision on restructuring or workout must be based on the
calculation of present value of future cash inflows either from client or
collateral, where the effective interest rate would be used as a
discount rate.
Bearing in mind the amount of bad loans and foreclosed assets,
personnel and technical capacity of this department must be at the
highest level.
Diversified funding sources:
•
Primary funds -Basic source of funds are retail savings and deposits
of corporate and public institutions; The price must be appropriate for
real needs and possibilities of placement these funds; Savings is
strategically important for the value of the company as an indicator of
capacity for generating liquidity from regular activity;
•
Loans from international financial institutions - Basic goal:
reducing the funds price; Precondition: understandable business plan
with recognizable organization and functional models; Secondary goal:
business internationalization, value for shareholders through expected
growth of value of shares due to diversification of risk of sources
concentration and recognition at international market; Improvement of
maturity structure of sources.
Operations with big clients - Include corporate, public sector
and retail; Standardized processes and procedures; Risk return
principle: A number of standard variables that define the risk with
comprehensive analysis - primary criteria is a cash flow capacity,
secondary one is collateral; Church tower principle; Client personality
assessment; “Case by case” decision making principle; Limited time
frame of analysis, decision making and processing of loan proposal
(limited T2Yes and T2Cash).
Reward
system
High standards of risk management:
•
•
•
management: Dividing SALES into Corporate, Public , Retail, Treasury;
Separating Credit Risk Management from Risk Controlling:
Centralization of the NPL MANAGEMENT; Decentralization of the
approval of retail loans below defined limit; Centralization of the
opening accounts and processing retail applications above defined
limit.
Performance
indicators
•
Credit lines from commercial institutions - Activity that
follows the establishment of institutional relations with IFI’s; The basic
goal is business expansion and inclusion into international flows; Classic
credit lines, collateralized credit lines, bond issue, subordinated loans,
mezzanine financing etc.
Strategic goals 2/2
• Diversified loan structure
•
Diversification strategy must include: Sectional diversification
(corporate, retail, public sector);Diversification by the loan size
(concentration); Divisional diversification; Currently there is a
diversification by maturity and currency
•
•
•
High level of concentration in corporate and public
sector: De-concentration must be based on a credit risk assessment
•
for each group of clients (amount of NPL and provisions), interest rate
and exchange rate risk; De-concentration measures involve: 1. Defining
the limit of exposure towards groups of individuals, 2. Development of
sales strategy - mid market and SME-u and 3. Increase the number of
clients in retail
•
Divisional diversification - Moving from activities with no
•
perspective to activities that are expected to contribute to GDP the
most; Macro-economical and divisional analysis as a base for
diversification of loans by divisions.
•
• Full regulatory compliance and zero
tolerance for corruption
Diversification by maturity - Maturity structure of loans must
comply with maturity structure of sources; A base for definition of
maturity structure of loans is analysis of sources in terms of stability,
possibility of renewing and definition of limits; Oobtaining fund sources
from IFI’s and commercial institutions presents a leverage for
extending assets maturity, which increases market competitiveness.
•
•
•
•
•
High brand recognition and positive image
•
• Strict cost control
•
Centralisation of the cost controllong should enable business
efficiency and flexibility. Main mechanism should rely on predefined
procurement procedure with respect to the budget limits of the
organisational parts.
Establishment of COMPLIANCE DIVISION with full scope of work:
Regulatory compliance and Anti Money Laundering; Providing adequate
personnel, technical and IT support to Compliance division.
Initial control of politics, contracts, documents, processes and
procedures in terms of regulatory compliance.
Personnel training inside the Compliance division and all employees in
terms of their rights and obligations regarding regulatory compliance
Centralization of communication, collecting and analyzing documents
and submission of documents to judicial and security authorities RS and
other regulatory institutions.
Establishment of anti money laundering department and financing of
terrorism (AML/CFT) inside the Compliance Division.
Technical and IT support for AML/CFT Defining annual plans, reporting
system, control system
Comprehensive system of training of employees (AML/CFT)
Employees contracts alteration so responsibilities for AML/CFT can be
defined for everybody
Special team to prevent internal and external frauds
•
•
•
•
•
Market research as a regular annual activity in order to determine the
value of the brand and image of the Bank and as a control mechanism.
Defining the PR and marketing strategy, which supports mission, vision
and goals. Communication strategy must include all external and
internal communication of the Bank
PR and Marketing budget adoption. Monitoring of the budget
realization and effects achieved. Marketing campaigns – as a support
both to sales growth and Bank’s basic values and public reputation
CSR (corporate social responsibility) adoption with selected group of
goals and areas of public and humanitarian acts supported and
promoted by the Bank
Creation of the Investor Relation Center which will enable transparent
communication toward stakeholders.
Centralization and controll of Regulatory Reporting and Communication
with Regulator
Financial Plan for 2014
•
Optimisation of foreign currency
liquidity
•
Increase in loan activity in segment
of SME, Public and Retail
•
Deconcetration of loan portfolio
(from large corporate clients to
SME)
•
Introduction of new client segments
with lower interest costs
•
Securities portfolio optimisation
according to the liquidity needs
•
Focus on commission income
•
Increase of transaction deposits
Amount in RSD
bill
Net Interest income
7.425
827
Net fees and commission income
Other non interest income
1.033
Operative Expenses
-5.781
Profit before tax
3.503
Amount in RSD
Assets / Liabilities
bill
Net Loans
72.720
Total Deposits
96.448
Equity
58.315
Total Assets
156.340
Income
Indicator
•
Cost centralisation
•
IT investments
ROE
ROA
Commisssion Income/Average Assets
Cost/Income Ratio
Commisssion Income/Total Income
Net loans / Total Deposits
Change (%)
2014/2013
+10,2%
+25,9%
+25,0%
-20,0%
279,2%
Change (%)
2014/2013
+7,1%
+1,2%
+6,3%
+2,6%
Amount in RSD bill
6,6%
2,3%
0,6%
34,3%
7,4%
68,5%
Current Organisational structure
Assembly
Board of Directors
Internal Audit
Compliance
Executive board
Board Assitance
CRO
CFO
CEO
CORO
Credit risk management corporate and public
Treasury
Corporate
Retail and SME
Credit risk management Retail
Accounting and Reporting
Public
Operation,
Organization and IT
Credit administration
Financial Planning and
Controlling
Legal
Purchasing, Asset and
Office Management
Risk controlling
HR
Workout
Marketing and
Comunication
Monitoring and Support
Securitity and Fraud
prevention
Subidiaries
Branches
Counters
Management
Board of directors:
ALCO
Member
Function
Member
Vladimir Čupić
Function
President
Miodrag Kostić
President of the Board of the Directors
Siniša Mihajlović
Member
Ljubiša Jovanović
Member of the Board of the Directors
Bojan Topalović
Member
Aleksandar Surla
Member of the Board of the Directors
Aleksandra Babić
Member
Ana Marković
Deputy
Djordje Djukić
Member of the Board of the Directors
Branka Damnjanović
Deputy
Nikola Litvinenko
Member of the Board of the Directors
Nenad Marković
Deputy
Executive board:
Audit Committe
Member
Function
Vladimir Čupić
CEO
Ana Marković
CRO
Siniša Mihajlović
CFO
Branka Damnjanović
CMO
Member
Đorđe Đukić
Function
President
Nikola Litvinenko
Member
Aleksandar Surla
Member
Network
Organization of the Bank Network:
Overview of AIK Banka's distribution footprint:
Subsidiaries
Branches
Counters
Organizational Structure
as of March, 31st, 2013
No.
Subsidiaries
20
Branches
37
Counters
8
Total
65
Employees
Our goal is to have employees with personnel
potential at the highest level, permanently
developed and goal oriented.
The investment in the human capital base was one
of the objectives in 2013. The Bank increased the
number of employees for 10%.
EMPLOYEES - AGE STRUCTURE
AS OF MARCH 31ST, 2014
50-60
14%
>60
2%
<30
19%
40-50
13%
¾ of the total employees are highly educated and
professionally specialized for their scope of work.
2/3 of the employees are younger than 40.
30-40
52%
# of employees evolution
576
553
505
514
Educational structure
end of 2013
478
High
school;
25,86%
University
; 58,95%
Q1 2014
31.12.2013 31.12.2012 31.12.2011 31.12.2010
Higher
education
; 15,19%
Shares and trading
Description
ISIN
Ordinary shares
Preferred convertible shares
Preferred Cumulative Shares
RSAIKBE79302
RSAIKBE15363
RSAIKBE36633
CFI kod
ESVUFR
EFNXNR
EPNXQR
Ticker
AIKB
AIKBPC
AIKBPB
Currency
RSD
RSD
RSD
Nominal value od Share
1.900
1.900
1.900
No od Shares issued
9.045.756
40.989
1.314.595
Total nominal value
17.186.936.400
+
77.879.100
= 19.762.546.000
BSE
+ 2.497.730.500
Traded:
BSE
BSE
Market
Open Market
MTP
MTP
Method:
Continues trading
Prevailing price (Auction)
Continuous trading
Centralni registar, depo i kliring hartija od vrednosti: www.crhov.rs
1800
Max
15.829
27.04.2007.
Min
1.150
12.03.2009.
52 weeks
Max
1.689
26.02.2013.
Min
1.221
03.07.2013.
Annual Statistics
Average Turnover (RSD)
10.362.707
Average No. of
6
transactions
AIKB - Share price (RSD)
Hystorical
1700
AIKB shares vs Index Belex 15
2013 - 2014
595
575
1600
555
1500
535
1400
515
1300
495
1200
475
Source: Belgrade Stock Exchange
Belex 15 - Values
Ownership Structure
Thanks !!!