Investor Presentation 2013 English - Basler...

Investor Presentation 2013Basler Kantonalbank

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

| © 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


Agenda


• BKB Group


2. Focal Points


4. Objectives 2015



2. Focal Points


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


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%


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


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


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.


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.


Agenda


• BKB Group


2. Focal Points


4. Objectives 2015



Rating

Stand-Alone-Ratingwithout government guarantee AA-


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


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


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%


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%


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


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


Agenda


• BKB Group


2. Focal Points


4. Objectives 2015



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


Priority

Pri

ori

ty

Reputation

and Trust

Risk provision Risk preventionBuilding up

the strengths


1. Risk provision


2. Risk prevention

• Improve risk culture as well as management and incentivesystems

• Strengthen Compliance/Governance

• Cross Border Business

• Checking business domain strategies


3. Building up the strengths

• Review Group-/ Bankstrategy

• Organisation development

• Cost reduction und use of synergies

• Systematization of sales process


Private Banking receives seventhconsecutive award

In the top 30 among400 institutes


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


New Headquarters Aeschenvorstadt 41


Agenda


• BKB Group


2. Focal Points


4. Objectives 2015



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)


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 IncomeSegmentMarket

Territory

Private Clients, SME

Private Banking

Private Clients, SME

Firms, Institutionals, Banks

NWCH

CH

CH

CH


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 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



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


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.


Dividend (gross)

3.30 CHF per BKB Participation Certificate

The dividend will be paid out on June 5, 2013.

Dividend payout


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)


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 061 266 29 77Fax 061 266 26 40E-mail [email protected]

www.bkb.ch

Contact Details

Investor Presentation 2013 English - Basler...

Documents

Transcript of Investor Presentation 2013 English - Basler...