Investor Presentation 2011 English - Basler Kantonalbank · PDF fileInvestor Presentation 2011...

Investor Presentation 2011Basler Kantonalbank

Our aim is the sustainable and permanent communication with investors and analysts.

| © Basler Kantonalbank

Agenda

1. Financial figures

• Parent Company Basler Kantonalbank

• BKB Group

2. Focal Points

3. Positioning in the BKB Group

4. Objectives 2015

5. BKB Participation Certificate


Parent Company Basler Kantonalbank Key Figures

* adjusted (without IT migration)

+ 5,7%2,5 bn CHF2,4 bn CHFDeclared equity

- 13,7%283,3 m CHF328,2 m CHFGross profit*

40,9%

33,0 bn CHF

13,0 bn CHF

12,0 bn CHF

22,4 bn CHF

31.12.2010

+ 7,3%12,2 bn CHFCustomer deposits

+ 14,1%28,9 bn CHFTotal customer assets

-37,4%Cost-income-ratio I*

+ 10,7%20,2 bn CHFTotal assets

+ 5,6%11,4 bn CHFLoans to customers

Change31.12.2009


Parent Company Basler Kantonalbank Loans to customers

MortgagesOther amounts due from customers

7'963 8'724 8'902

2'4772'651 3'113

0

2'000

4'000

6'000

8'000

10'000

12'000

14'000

2008 2009 2010

11‘37510‘440 12’016 (+ 935) (+ 641)

+ 9.0%+ 5.6%

in CHF m


Parent Company Basler Kantonalbank Customer deposits

Due to customers on savings and investments

Other amounts due to customersIssues of medium term notes

4'8395'563 5'937

5'521

6'2186'892

482

372

209

0

2'000

4'000

6'000

8'000

10'000

12'000

14'000

2008 2009 2010

+ 12.1%+ 7.3%

12’153 10’842 13’038 (+ 1’311) (+ 885)in CHF m


Parent company Basler KantonalbankIncome structure

Net profit from trading operations

Net profit from fees and commissions

Net profit from interest transactions

Operating profit: 480 m CHF

Net other ordinary profit

46%

26%

18%

10%


Parent Company Basler KantonalbankProfit Statement 2010

in 1000 CHF

Net profit from interest transactions 230'289 219'007 -4.9%Net profit from fees and commissions 120'669 125'018 3.6%Profit from trading operations 122'380 89'194 -27.1%Net other ordinary income 50'594 46'281 -8.5%

Operating income 523'932 479'500 -8.5%

Personnel expense -122'535 -127'960 4.4%General administrative expense -73'191 -68'248 -6.8%

Net operating expense adjusted (without IT migration) -195'726 -196'208 0.2%Net operating expense -221'495 -211'137 -4.7%

Gross profit adjusted (without IT migration) 328'206 283'292 -13.7%Gross profit 302'437 268'363 -11.3%

FY2009

FY2010

Change in %


Parent Company Basler KantonalbankProfit Statement 2010in 1000 CHF


Depreciation, write-offs of fixed assets -46'770 -46'282 -1.0%Value adjustments, provisions and losses -19'820 -11'154 -43.7%

Operating profit adjusted (without IT migration) 261'616 231'762 -11.4%Operating profit adjusted 235'847 210'927 -10.6%

Guarantor settlement -37'510 -31'091 -17.1%

Profit, pre-tax adjusted (without IT migration) 224'106 200'671 -10.5%Profit, pre tax 198'337 179'836 -9.3%

Extraordinary income 41'320 36'237 -12.3%Extraordinary expense -1'615 -58 -96.4%Provisions IT -30'000 0 -100.0%Allocation to reserves for general banking risks -109'350 -126'000 15.2%Taxes -1'265 -1'719 35.9%

Annual profit 97'427 88'296 -9.4%

FY2009

FY2010

Change in %


Agenda



• BKB Group

2. Focal Points


4. Objectives 2015



BKB Group Key Figures

+ 2,5%49’17347’957Total customers assets

+ 6,1%23’01921’701Customer deposits

+ 4,7%3’0272’890Declared equity

+ 5,6%24’19522’918Loans to customers

35’361

254,3

342,5

31.12.2010

+ 7,7%32’837Total assets

- 13,8%397,2 Gross profit*

- 12,1%289,4Group profit*

Change31.12.2009in CHF m

* adjusted (without IT migration)


BKB GroupLoans to customers

Bank CoopBasler Kantonalbank

22’918 21’485 24’195 (+ 1’433) (+ 1’277)

+ 5,9%+ 4,3%

+ 9,2%+ 5,3%

in CHF m

10'440 11'403 12'003

11'04511'515

12'192

0

5'000

10'000

15'000

20'000

25'000

2008 2009 2010


BKB GroupCustomer deposits

Basler Kantonalbank Bank Coop

+ 8,3%

+ 4,5%

21’701 19’540 23’019 (+ 2’161) (+ 1’318)

+ 17,5%

+ 3,0%

in CHF m

10'84512'741 13'311

8'695

8'9609'708

0

5'000

10'000

15'000

20'000

25'000

2008 2009 2010


BKB GroupDerivation of Gross profit

in 1000 CHF

Net profit from interest transactions 380'155 367'589 -3.3%Net profit from fees and commissions 195'054 193'466 -0.8%Profit from trading operations 143'707 95'590 -33.5%Net other ordinary profit 17'027 18'056 6.0%

Operating profit 735'943 674'701 -8.3%

Personnel expense -214'337 -212'745 -0.7%General administrative expense (without IT migration) -124'403 -119'450 -4.0%

Net operating expense adjusted (without IT migration) -338'740 -332'195 -1.9%Net operating expense -389'284 -364'308 -6.4%


FY2009

FY2010

Change in %


BKB GroupDerivation of Group profit

in 1000 CHF

Gross profit adjusted (without IT migration) 397'203 342'506 -13.8%Gross profit 346'659 310'393 -10.5%Depreciation, write-offs fixed assets -57'293 -52'000 -9.2%Value adjustments, provisions and losses -27'911 -17'140 -38.6%

Operating results adjusted (without IT migration) 311'999 279'272 -10.5%Operating results 261'455 241'253 -7.7%

Guarantor settlement -37'510 -31'091 -17.1%Profit, pre-tax adjusted (without IT migration) 274'489 248'181 -9.6%Profit, pre-tax 223'945 210'162 -6.2%

Extradordinary income 31'287 22'388 -28.4%Extraordinary expense -2'619 -133 -94.9%Taxes -13'728 -16'096 17.2%

Group profit adjusted (without IT migration) 289'429 254'340 -12.1%Group profit 238'885 216'321 -9.4%

of which minority interests in the Group profit 16'202 21'438 32.3%

FY2009

FY2010

Change in %


BKB GroupSegment information 2010, in CHF m Retail

BankingPrivate

BankingCommercial

BankingTrading

DepartmentCorporate

CenterTotal

Net profit from interest transactions 169.2 52 109.6 20 16.8 367.6Net profit from fees and commissioins 53 97.4 19.2 7 16.9 193.5Profit from trading operations 7.8 12.8 1.2 80.3 -6.5 95.6Net other ordinary income 0.1 0.3 – – 17.6 18Operating income 230.1 162.5 130 107.3 44.8 674.7

Personnel expense -40.3 -27.8 -13.6 -17.1 -113.9 -212.7General administrative expense -15.3 -9.4 -2.5 -9.5 -114.9 -151.6Internal cost allocation -20.9 -4.9 -4.2 -0.2 30.2 –Net operating expense -76.5 -42.1 -20.3 -26.8 -198.6 -364.3

Gross profit 153.6 120.4 109.7 80.5 -153.8 310.4

Depreciation, write-offs fixed assets – – – – -52 -52Value adjustments, provisions and losses -12 -0.6 -22.6 -0.1 18.2 -17.1Operating profit 141.6 119.8 87.1 80.4 -187.6 241.3

Guarantor settlement -31.1Profit, pre-tax 210.2

Extraordinary income 22.4Extraordinary expense -0.1Taxes -16.2Group profit 216.3


Earnings power comparison 2010

How many millions of Gross Profit is beinggenerated per billion of Total Assets:*

* The listing is not comprehensive.

9.3 8.7

6.7 6.5

9.7

12.7

6.2

12.310.9

13.5

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KB

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KB

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BK

B (

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Rating confirmation

Stand-Alone-Ratingwithout government guarantee AA-


BKB Group:Risk situation trading book

3’503

7’476’122

44’070’378

2’436’062

46’000’606

31.12.2009

10’138’2216’973’454VaR equities

86’47538’444VaR commodities

61’756’934

3’036’649

64’414’251

31.12.2010

67’232’079VaR interest rates

70’266’491VaR trading book

2’391’319VaR currencies

31.12.2008in 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 exceededwith a given probability (confidence interval) for a predetermined holding period.


BKB Group:Risk situation banking book

- 18’620

1’228’459

1’766’443

- 3’013’522

31.12.2009

- 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 occurswhen the interest rate is increased by one basis point. A basis point equals 0,01 percent.


Agenda



• BKB Group

2. Focal Points


4. Objectives 2015



Migration of BKB Group to Avaloq

Enables offering of complex investment solutions

Increased efficiency for both banks

Shared IT platform „Avaloq“ in the BKB Group


Acquisition of AAM Privatbank AG

• Successful Integration

• Expansion of Client Basis

• New Private Banking Location

• Strengthening of Workforce


Private Banking receives fifthconsecutive award

In the Top 35 among360 institutes!


Focal Points2011

Enthusing customers!Increase in efficiency

New regulations Synergies within the group


Agenda



• BKB Group

2. Focal Points


4. Objectives 2015



BKB Group: 7th Largest Swiss Bank Group

Reduced by coefficient 6

Total assets by end of 2010

(in CHF m)

1’317’247

1’032’005

142’990

126’410

46’287

35’585

35’361

33’714

23’656

24’335

Clariden Leu Group

Berner KB

Migros Bank

BKB Group

BC Vaudoise

Credit Suisse Group

UBS

Raiffeisen

Zürcher KB

Julius Bär Holding


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


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


BKB Group locations


Strategic thrusts

Clients Income

NWCH

CH, D

CH

CH

Segment Market Territory

Private Clients, SME

Private Banking

Private Clients, SME

Firms, Institutionals, Banks


Agenda



• BKB Group

2. Focal Points


4. Objectives 2015



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


Strategic Objectives 2015 Parent Company Basler Kantonalbank

ProfitabilityGross profit400 m CHF

EfficiencyCost-income-ratio < 40%

GrowthLoans to customers

14 bn CHF

GrowthNet New Money1.5 bn CHF p.a.


Strategic Objectives 2015BKB Group

EfficiencyCost-income-ratio < 45%

ProfitabilityRanked 6th in terms of gross profit

LargenessRanked 5th – 7th in terms of total assets


Agenda



• BKB Group

2. Focal Points


4. Objectives 2015



Source: Bloomberg

BKB Participation Certificate –a sustainable investment

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

350

300

250

200

150

100

50

0

indexiert

BKB Participation Certificate+ 204.17%

SPI-Bank Index- 31.19%


Market capitalization (per 30.12.2010)

2,60St. Galler Kantonalbank9.

Market valuein CHF bnRank

2,64Bank Sarasin8.

4,19Basler Kantonalbank5.

4,22Banque Cantonale Vaudoise4.

9,04Julius Bär Holding3.

3,04Graubündner Kantonalbank6.

Basellandschaftliche Kantonalbank

Credit Suisse Group

UBS

2,787.

44,022.

58,27 1.

Source: FuW-Aktienführer online


Dividend

Dividend payout (gross)

3.30 CHF per BKB Participation Certificate

The dividend will be paid out on April 20, 2011.


BKB Participation CertificateKey Figures

4’260,753’576,04in m CHFMarket capitalization at year-end*

119,60

2009

142,50in CHFMarket price at year-end

2010Exchange-rate statistics

81,8877,17in CHFBook value*

2,322,76in %Dividend yield

22,0519,98in %Pay-out-ratio

19,8817,29Price-earnings-ratio

1,741,55Price-book-ratio

3,26

8,75

10,98

2009

2,95in CHFAnnual profit (Earnings per share)*

9,47in CHFGross profit adjusted (without IT migration)*

7,75in CHFOperating profit adjusted (without IT migration)*

2010Key figures per Participation Certificate

* The endowment capital is also taken into account.


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


Basler KantonalbankHead of General Secretariat / Media Office / IRDr Michael BuessP.O. BoxCH-4002 Basel

Direct line +41 (0)61 266 29 77Fax +41 (0)61 266 26 40E-mail [email protected]

www.bkb.ch

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