4_Marfin-Laiki-Bank - Globalserve International Network

1
The Cyprus
Banking
System
Miltos Michaelas
Director - International Business Banking
2
Cyprus
 EU member since May 2004
 Euro zone member since January 2008
 Proven versatility in crisis
 Milder effects from the economic crisis
 Stable, conservative Banking System
 The financial sector withstood the global crisis
 No public recapitalization or government support
 Cyprus is in the OECD white list
 Extensive DDT network
Cyprus ratings
www.doingbusiness.org/
Best Countries
for Business
Cyprus # 22
“A gradual economic recovery is
underway, with growth likely to reach the
1½-2 percent range this year and
favorable prospects for a continued
upturn in 2012. Underlying inflation
remains subdued, although higher fuel
prices will have an impact on headline
inflation.”
“In this context, we welcome the
government’s plans to bring fiscal
balances into line with European Union
norms over the next two years, “
Cyprus going strong in 2010
“Russian tycoon, Dmitry
Rybolovlev continues with
his placements in Bank of
Cyprus. According to an
announcement released
today, the Russian
acquired yesterday €3,1
million of BOCY against
€1,5 million. Also,
1.170.000 rights were
acquired (€0,49) via the
CSE and 1.925.000
(€0,49) via the ASE. Mr
Rybolovlev holds almost
9,9% of BOCY’s capital.”
VTTI
“Our decision to proceed
with such a large
investment in Cyprus is
due to the fact that the
Cypriot economy has not
been affected to a great
extent by the (world)
financial crisis. The
Cypriot economy has
opportunities for growth.”
Qatar's Emir, Sheikh
Hamad bin Khalifa alThani
Nicosia
21 April 2010
BOC
QATAR
Total deposits increase by 20% (€11,8 billion) during 2010 as
international investors illustrate their confidence in Cyprus
“This terminal will turn
Cyprus into a regional oil
product hub allowing us to
export products from this
terminal into other parts of
the east Med” VTTI CEO
Rob Nijst told a news
conference in the Cypriot
capital Nicosia. Vitol the
world's largest energy
trader, plans to build an oil
import and distribution
terminal in Cyprus.
And still stronger in 2011
Marfin Laiki Bank raises €488 Million
The largest ever Capital raising completed by a Cypriot based corporation with
more than 70% of the funds committed coming from abroad
Total funds subscribed from the existing shareholders were above
€540 million, resulting in an oversubscription of 111%.
This is the first time during the recent past that such strong
demand has been generated, leading to the oversubscription of a
Financial Institutions’ rights issue in Greece as well as Cyprus.
Given the systemic importance of the country’s Banking system, in
itself this is a success that sends all the right signals for the
soundness of the Banking System as well as for the country’s’
economy and financial outlook.
The Cyprus Banking System
10
Cyprus Banking
 A market driven system based on English law
 Legacy of the British colonial rule
 Marfin Laiki Bank, BOC – more than 100 years old
 Legal and Banking structures (still) reflect British
equivalents
 Corporations Act 1925 - Marfin Laiki is number 1 on
Register of Companies
 Open, competitive, multivariate, multidimensional, even
multicultural Banking Industry
 Well capitalised and profitable banks
 www.acb.com.cy
A Multitude of Banks of past and present
BRANCHES OF BANKS OF
COUNTRIES OTHER THAN EU
1. BankMed s.a.l.
2. Arab Jordan Investment Bank
SA
3. BANQUE BEMO SAL
4. Bank of Beirut SAL
5. BBAC SAL
6. BLOM Bank SAL
7. Byblos Bank SAL
BRANCHES OF BANKS OF
8. Credit Libanais SAL
EU COUNTRIES
9. FBME Bank Ltd
Barclays Bank PLC
10.Open joint-stock
Banque SBA SA
company AvtoVAZbank
First Investment Bank Ltd
11.OJSC Promsvyazbank
Joint Stock Company “Trasta 12.Jordan Kuwait Bank PLC
Komercbanka”
13.Jordan Ahli Bank plc
National Bank of Greece S.A. 14.Lebanon and Gulf Bank SAL
Central Cooperative Bank PLC 15.Lloyds TSB Offshore Limited
Banca Transilvania S.A.
16.Privatbank Commercial Bank
Joint Stock Company Akciju
17.IBL Bank sal
Komercbanka "Baltikums"
OTHER BANKS
LISTED BANKS
1. Co-operative Central Bank
1.Marfin Popular Bank Public Co Ltd
Ltd
2.Bank of Cyprus Public Company Ltd
2. The Cyprus Development
3.Hellenic Bank Public Company Ltd
Bank Public Company Ltd
4.USB Bank Plc
3. Housing Finance
Corporation
SUBSIDIARIES OF FOREIGN
4. Mortgage Bank of Cyprus
BANKS
Ltd
 Αlpha Bank Cyprus Ltd
 BNP
Paribas Cyprus Ltd
 Emporiki Bank – Cyprus Limited
 Kommunalkredit International Bank
Ltd
 National Bank of Greece (Cyprus)
Ltd
 Russian Commercial Bank (Cyprus)
Ltd
 Societe Generale Cyprus Ltd
 Piraeus Bank (Cyprus) Ltd
 Eurobank EFG Cyprus Ltd
1.
2.
1.
2.
3.
4.
5.
6.
7.
8.
REPRESENTATIVE OFFICES
UBS AG
Atlasmont Banka A.D.
Central Bank of Cyprus (CBC)
 Cyprus joined euro area on 1 January 2008
 Interest rate management is now the
responsibility of the European Central Bank
 Governor is a member of the Board of ECB
 The primary objective of the ECB is to ensure
price stability, which means keeping inflation
rates below, but close to, 2%
 The CBC supervises the commercial banks
 http://www.centralbank.gov.cy
An Effective Supervisory Mechanism
 Proven track record in setting Monetary Policy
and safeguarding the Banking system
 IMF’s Assessment of Financial Sector Supervision
Report: “Supervision is strong, effective and in
compliance with International Standards”
 Full adoption of European Regulation
 Use of non-interest rate tools proactively:
 Tight(er) liquidity requirements – only 30% of FX
deposits can be lend out by Banks
 Managed “cooling off” of the property market:
tightened LVRs since mid 2007, to 70%.
IMF February 2011 report
“The Cypriot banking system has weathered the economic
difficulties well and appears to be in sound overall condition.
It has benefited from reliance on deposits rather than less stable
sources of financing, conservative lending practices, close
attention to capital and liquidity buffers, and vigilant supervision.
These factors have helped shield the banking system from the
pressures that are prevalent in many other countries. The ongoing
risks in international financial markets call for a continuation of
conservative balance sheet management and careful supervision”
More deposits than loans
€bn
DE
C
JU 05
NE
0
DE 6
C0
JU
6
NE
0
DE 7
C
JU 07
NE
0
DE 8
C
JU 08
NE
0
DE 9
C
0
FE 9
B
10
M
AR
1
AP 0
R
10
M
AY
1
JU 0
N
10
JU
L
1
AU 0
G
1
SE 0
P
1
O 0
C
T
1
NO 0
V
1
DE 0
C
10
70
65
60
55
50
45
40
35
30
25
Loans
Deposits
 Cyprus is self sufficient in
liquidity, post (liquidity) crisis
 No deposit withdrawals by
international customers at any
time
 Loan growth under control
 December 2010
Loans/deposits 87,9%
 €11,8bn increase in deposits
in 2010 (20% increase)
€bn
50
45
40
35
30
25
20
15
10
5
0
16.211
B
1
AP 0
R
M 10
AY
1
JU 0
N
10
JU
L
AU 10
G
1
SE 0
P
1
O 0
C
T
NO 10
V
1
DE 0
C
10
09
FE
DE
C
08
DE
C
07
16.600
DE
C
06
DE
C
DE
C
05
43.432
FCY
EUR
 Euro
deposits
growing
faster than FX since mid
2006
 Time deposits grew faster
than demand after Sep 2008
A Competitive Banking Market
 Commercial Banking
8 local Banks and other credit Institutions
 9 subsidiaries of Foreign Banks
 27 International Banks operate branches
 Very open & automatic for EU Banks
 462 branches plus 33 IBUs
 Supervised by the Central Bank of Cyprus

 Large Cooperative sector
111 co-ops
 Supervised by the Cooperative Central Bank

Experiences from Abroad
Targeting
Greek &
Cypriot
populations
in developed
countries
Banking
experiences in
UK, Australia,
USA, South
Africa, Canada
Entry of main
Cypriot banks
in Greek
Market
solidified
international
strengths and
experiences
Entry to CEE
was a
calculated move
to extend
products and
services to
existing client
base
Shaping our future
Expanding
Cyprus role
as a regional
financial
centre within
EU
New markets
(China, India)
and new
Products
(Funds and
Fund
Management)
A credible
world class
financial
services
centre
Commercial Banking
•
•
•
•
•
•
•
Highly educated staff
Basel III - Ready
Very good profitability record
No exposure to “Toxic Assets”
Limited exposure to CEE
Healthy Capital ratios
Strong Liquidity position
An excellent
Example
Marfin Laiki Bank
21
Group Profile – 110 Years Old
• Marfin Laiki Bank (MLB) is strategically positioned as an
emerging regional player with two home markets, Greece
& Cyprus, and operations spanning in 11 countries in
Emerging Europe, UK, Australia, Malta, Russia & Ukraine
• Regional bank with focus on corporate banking, wealth
management and international business banking
• Ten years of robust growth both organically and through
a series of mergers & acquisitions and strategic alliances
• Successful management track record and entrepreneurial
culture
• Head-Office in Cyprus
• 502 branches, over 9.500 staff
• http://www.marfinlaiki.com.cy/
The widest int’l presence
(4)
(26)
*(5)
(62)
Australia
(10)
(27)
Montenegro
(28)
(184)
(115)
(41)
Malta
* 1 Branch is located inGuernsey
Ratings
Credit Ratings
Capital Raising 11 02 2010
Marfin Popular Banks’ €488 million Capital increase
was successfully completed on 11.2.2011. This is the
largest ever Capital raising completed by a Cypriot
based corporation with more than 70% of the funds
committed coming from abroad. Total funds
subscribed from the existing shareholders were
above €540 million, resulting in an oversubscription
of 111%.
Baa2
BBB
The new capital injection positions the Group
amongst the best capitalised in Europe with a Group
Tier I Capital Base of €3.3bn and Total Regulatory
Capital Base of €3.8 billion. The capital adequacy
ratios for the Group now stand for Core Tier I, Tier I
and Total Regulatory Capital ratios at 9.6%, 12.3%
and 13.9% respectively.
Strong Shareholders-Allies
 MLB shares are listed on the Athens and the Cyprus Stock Exchanges
 Biggest shareholder is Dubai Investment Fund with 18,81%
 No exposure to Dubai fund or Dubai economy – confirmed by
press release and Rating Agencies comments
 Participated in capital increase
 http://www.dubaigroup.com/
 2nd biggest is Marfin Investment Group (MIG) with 9,55%
 Listed in Athens Stock Exchange
 €5,19bn capital raising through private placement completed in
July 2007
 Most recent investment: Olympic Airlines
 Participated in capital increase
 http://www.marfininvestmentgroup.com/
Key Financial Information
Key balance sheet figures (€m)
Loans to customers (net)
FY2008
23.427
FY2009
25.082
3Q2010
27.169
3Q10/ 3Q09
8,32%
Total assets
38.367
41.828
42.681
2,04%
Customer deposits
24.828
23.886
24.890
4,20%
Total equity
3.430
3.636
3.581
-1,51%
Tangible equity
2.165
2.358
2.298
-2,54%
FY2008
8,6%
FY2009
9,7%
Capital adequacy ratio
10,6%
11,8%
11,8%
-
Cost/income
54,5%
58,1%
62,7%
+4,6%
2,4%
1,72%
1,83%
+0,11%
94,4%
104%
105%
+1%
4,3%
6,1%
7,1%
+1%
61 bps
105 bps
89bps
-16bps
Key ratios
Tier 1
NIM
Loans/Deposits
NPLs
Provisioning
27
Change page numbering in all
3Q2010 3Q10/ 3Q09
10,2%
+0,5%
Marfin Laiki Bank Achievements
“Best
Investment
Services
Provided,
Cyprus 2008”
Awarded by “World
Finance of Reuters”
– (first time
awarded to a
Cypriot Bank)
“Innovation
AwardCyprus”
Awarded by
“Money Markets
2008
International
Custody Awards”
“Special 10
Year
Recognition
Award for the
period 20002009”
For the quality
of US payments
Awarded by
“JP Morgan” –
(first time
awarded to a
Cypriot Bank)
“Best Bank
in Cyprus
in 2009”
Awarded by
“World
Finance”
“Best
Internet
Bank,
Consumer
Bank in
Cyprus,
2009” and
“Best Sub
Custodian
Bank in
Cyprus,
2009”
Awarded by
“Global Finance”
Top 1000 World Banks
2009
2010
Rank 240
209
FT Banker magazine
Contact Us
29
Contact Us
IBB
INTERNATIONAL BUSINESS
BANKING (339)
Mailing Address: PO Box 22032, CY1598 Nicosia, Cyprus
Tel: +357 22363923,
Fax: +357 22363900
e-mail:
Nicosia
Limassol
INTERNATIONAL BUSINESS
CENTRE 1 (178)
Tel: +357 22 363737,
Fax: +357 22 363750
e-mail:
[email protected]
INTERNATIONAL BUSINESS
CENTRE 1 (179)
Tel: +357 25 815959,
Fax: +357 25 815972
e-mail:
[email protected]
INTERNATIONAL BUSINESS
CENTRE 2 (168)
Tel: +357 22 363939,
Fax: +357 22 363700
e-mail:
[email protected]
INTERNATIONAL BUSINESS
CENTRE 2 (158)
Tel: +357 25 815959,
Fax: +357 25 815637
e-mail:
[email protected]
[email protected]
Contact Us (cont…)
International Lending
Larnaca Paphos
INTERNATIONAL BUSINESS
CENTRE (177)
INTERNATIONAL BUSINESS
CENTRE (164)
Tel: +357 24814291,
Tel: +357 26816522,
Fax: +357 24814290
e-mail:
[email protected]
Fax: +357 26911334
e-mail:
[email protected]
Tel: +357 22363718, Fax: +357 22312878
e-mail: [email protected]
International Corporate Banking Unit
Tel: +357 22363903, Fax: +357 22363900
e-mail: [email protected]
Moscow Representative Office
Tel: +74959670185, Fax: +74959670186
e-mail: [email protected]
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This presentation is only being made available to interested parties on the basis that: (A) if they are UK persons, they are (i) persons who are "Investment
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(ii) persons falling within any of the categories of persons described in Article 49 of the Financial Promotion Order, (iii) persons to whom this Memorandum
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Forward-looking statements may be influenced in particular by factors such as movements in local and international securities markets, fluctuations in
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regulatory trends and changes in economic, regulatory and technological conditions. We caution that the foregoing list is not exhaustive.
When relying on forward-looking statements to make decisions, investors should carefully consider the aforementioned factors as well as other
uncertainties and events. Any statements regarding past trends or activities should not be taken as a representation that such trends or activities will
continue in the future. All forward - looking statements are based on information available to Marfin Popular Bank Public Co Ltd. on the date of this
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