3Q15 Results presentation - Banco Sabadell · 2020-06-26 · results. No person is under any...

Sabadell3Q15 Results

October 23rd, 2015

DisclaimerThis presentation (the "Presentation") has been prepared and is issued by, and is the sole responsibility of Banco de Sabadell, S.A. ("Banco Sabadell" or "the Company"). For the purposes hereof, the Presentation shall mean and include the slides that follow, any prospective oral presentations of such slides by the Company, as well as any question-and-answer session that may follow that oral presentation and any materials distributed at, or in connection with, any of the above.

The information contained in the Presentation has not been independently verified and some of the information is in summary form. No representation or warranty, express or implied, is made by Banco Sabadell or any of its affiliates (Banco Sabadell Group), nor by their directors, officers, employees, representatives or agents as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions expressed herein. None of Banco Sabadell nor any of its affiliates, nor their respective directors, officers, employees, representatives or agents shall have any liability whatsoever (in negligence or otherwise) for any direct or consequential loss, damages, costs or prejudices whatsoever arising from the use of the Presentation or its contents or otherwise arising in connection with the Presentation, save with respect to any liability for fraud, and expressly disclaim any and all liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in connection with the accuracy or completeness of the information or for any of the opinions contained herein or for any errors, omissions or misstatements contained in the Presentation.

Banco Sabadell cautions that this Presentation may contain forward looking statements with respect to the business, financial condition, results of operations, strategy, plans and objectives of the Banco Sabadell Group. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a certain 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, macroeconomic, governmental, political and regulatory trends, (2) movements in local and international securities markets, currency exchange rate. and interest rates. (3) competitive pressures. (4) technical developments. (5) changes in the financial position or credit worthiness of our customers, obligors and counterparts. These and other risk factors published in our past and future filings and reports, including those with the Spanish Securities and Exchange Commission (“CNMV”) and available to the public both in Banco Sabadell´s website (www.bancsabadell.com) and in the CNMV website (www.cnmv.es), as well as other risk factors currently unknown or not foreseeable, which may be beyond Banco Sabadell's control, could adversely affect our business and financial performance and cause actual results to differ materially from those implied in the forward-looking statements.

The information contained in the Presentation, including but not limited to forward-looking statements, is provided as of the date hereof and is not intended to give any assurances as to future results. No person is under any obligation to update, complete, revise or keep current the information contained in the Presentation, whether as a result of new information, future events or results or otherwise. The information contained in the Presentation may be subject to change without notice and must not be relied upon for any purpose.

This Presentation contains financial information derived from Banco Sabadell´s unaudited financial statements for the nine-month period ended September 30, 2015. None of this financial information has been audited by our auditors. Financial information by business areas is presented according to GAAP as well as internal Banco Sabadell group´s criteria as a result of which each division reflects the true nature of its business. These criteria do not follow any particular regulation and can include forecasts and subjective valuations which could represent substantial differences should a different methodology be applied.

Market and competitive position data in the Presentation has generally been obtained from industry publications and surveys or studies conducted by third-party sources. Peer firm information presented herein has been taken from peer firm public reports. There are limitations with respect to the availability, accuracy, completeness and comparability of such data. Banco Sabadell has not independently verified such data and can provide no assurance of its accuracy or completeness. Certain statements in the Presentation regarding the market and competitive position data are based on the internal analyses of Banco Sabadell, which involve certain assumptions and estimates. These internal analyses have not been verified by any independent source and there can be no assurance that the assumptions or estimates are accurate. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in the Presentation.

The distribution of this Presentation in certain jurisdictions may be restricted by law. Recipients of this Presentation should inform themselves about and observe such restrictions.

Banco Sabadell is not nor can it be held responsible for the use. valuations. opinions. expectations or decisions which might be adopted by third parties following the publication of this Presentation.No one should purchase or subscribe for any securities in the Company on the basis of this Presentation. This Presentation does not constitute or form part of, and should not be construed as, (i) an offer, solicitation or invitation to subscribe for, sell or issue, underwrite or otherwise acquire any securities, nor shall it, or the fact of its communication, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract or commitment whatsoever with respect to any securities; or (ii) any form of financial opinion, recommendation or investment advice with respect to any securities.

1. Quarterly highlights2. 3Q15 Results

3. Commercial activity

4. Liquidity and ALCO portfolio

5. Capital and risk management

6. TSB 3Q results

2

Quarterly highlights

� NII grows by 2.8% since June, on a comparable basis, due to the lower cost of funding

� Fees have performed well in a seasonally weak quarter mainly driven by asset management business

� Activity is picking up, both in businesses and in individuals, and should translate into higher loan growth going forward

� Asset quality continues to improve. Group NPL ratio stands at 8.51%. Ex-TSB, NPL ratio stands at 10.38%

� Lower level of cost of risk, taking advantage of the strong provisions taken in the first half of the year

� Good evolution in volumes in TSB, in both mortgages and deposits, and cost control; IT quick wins will preempt migration next year

3

1. Quarterly highlights

2. 3Q15 Results 3. Commercial activity



6. TSB 3Q results

4

Sep. 14 comp. basis

Sep. 15 % var 15/14Sep. 15 ex-TSB

% var 15/14

Net Interest Income 1,650.0 2,240.3 35.8% 1,973.1 19.6%

Equity Method & Dividends -0.3 40.5 --- 40.5 ---Commissions 629.6 728.2 15.7% 687.0 9.1%Trading Income & Forex 1,389.5 1,254.8 -9.7% 1,256.6 -9.6%Other Operating Results 7.8 -5.0 --- -4.0 ---Gross Operating Income 3,676.6 4,258.8 15.8% 3,953.2 7.5%

Personnel Costs -906.5 -1,032.3 13.9% -919.5 1.4%Administrative Costs -431.4 -557.7 29.3% -437.3 1.4%Depreciations -206.0 -234.6 13.9% -216.1 4.9%Pre-provisions Income 2,132.7 2,434.2 14.1% 2,380.3 11.6%

Total Provisions & Impairments -1,725.0 -1,955.2 13.3% -1,955.2 13.3%Gains on sale of assets 85.3 -17.5 --- -17.5 ---Negative goodwill 0.0 207.4 --- 207.4 ---Profit before taxes 493.0 668.8 35.7% 614.9 24.7%Taxes and others -129.2 -89.0 --- -74.7 ---

Attributable Net Profit 363.8 579.8 59.4% 540.2 48.5%

Sabadell group Ex-TSB

September 2015 results

*

*September 2014 numbers are on a comparable basis, as if the payments related to the DGF would not have been accrued. September 2014 reported net profit was €265.3 million, accruing the payments related to the DGF.Note: Exchange rate EURGBP for P&L data of 0.7234 (3Q15 average). 5

*

574.1 609.7 643.1 655.9 674.1

267.2

3Q14 4Q14 1Q15 2Q15 3Q15

NII maintains its positive trend

Net interest income evolutionEuros in million

Sabadell ex-TSB:

+19.6% YoY+2.8% QoQ

6

941.3

Note: Exchange rate EURGBP for P&L data of 0.7234 (3Q15 average).

YoY growth:

+35.8%

TSB contributionSabadell ex-TSB

Customer spread supported by lower cost of funding

Margin evolutionIn percentage

Customer spread

Net interest margin as a % of ATA

Cost of customer funds, ex-TSB

Customer loan yield, ex-TSB

Customer loan yield and cost of customer funds In percentage

7

2.06%2.22% 2.29% 2.35%

2.44% 2.47% 2.47%

1.29% 1.36% 1.40%1.49%

1.57% 1.59% 1.62%

2.69%

1.83%

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Customer spread, ex-TSB

Net interest marginas a % of ATA, ex-TSB

Cost of customer funds

Customer loan yield

3.50% 3.47% 3.39% 3.32% 3.32% 3.20%3.06%

1.44%1.25%

1.10%0.97% 0.88%

0.73%

0.59%

3.31%

0.62%

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Resilient NIM in a low interestrate environment

8

ALCO portfolio

Loan Yield and volume

2Q15

656

Wholesale funding

Retail deposits

674-30 -2 +20

3Q15

+30

NII 3Q cause of change analysis, ex-TSBEuros in million

NIM

1.59%

NIM

1.62%

Liability repricing will continue in coming years

9

10,5501.12%

6,5491.10% 8,359

1.04%

6,7670.73%

1,1381.07%

4590.96%

1,4140.73%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

0 1 2 3 4 5 6 7 8

Maturities of term deposits: volume and average interest rate cost Euros in million

4Q15 3Q16 4Q16 1Q17 >2Q172Q161Q16

4950.96%

10,5501.12%

1,1381.07%

1,414 0.73%

Wholesale funding maturitiesEuros in million

3,1473.55%

6,7670.73%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

0 2 4 6 8 102015 2018 2019 2020 202120172016 >20222022

4,606 2.53%

3,1473.55% 1,679

3.43% 924 3.41%

1,547 3.08%

2,5852.48%

1,144 3.26%

761 2.18%

476 2.43%

� Remaining delta to feed into NII from deposit repricing: c.€330M

� Remaining delta to feed into NII from wholesale funding: c.€220M

8,3591.04%

6,549 1.10%

186 184 181 178 176

90 92 94 95 96

282 285 284 282 282

260243

229219

210

3Q14 4Q14 1Q15 2Q15 3Q15

Credit spreads are beginning to stabilise

Evolution of loan spreads by segment, ex-TSBIn percentage

Our expertise and capabilities allow us to maintain spread levels

Back book loan spreads by segment, ex-TSBIn basis points

Mortgages to individualsTotal SMEs Corporates

10

Back book

Front book

Back book

Front book

Back book

Front book

Back book

Front book

Back book

Front book

Mortgages to individuals 90 209 92 201 94 187 95 173 96 175

SME 282 494 285 445 284 459 282 417 282 414

Corporates 260 297 243 265 229 233 219 233 210 225

2Q153Q14 4Q14 1Q15 3Q15

232.9

41.2

3Q15

48.9 53.0 55.6 57.9 65.1

53.6 57.0 54.2 53.9 54.2

112.7121.3 116.0 116.4

113.6

3Q14 4Q14 1Q15 2Q15 3Q15ex-TSB

Commission income grows in a seasonally weak quarter Commission income evolutionEuros in million

Asset Mgmt1, ex-TSB

Services, ex-TSB

Lending, ex-TSB

1Includes mutual funds commissions and pension funds and insurance brokerage.

215.1231.3 225.8 228.2

11

YoY growth, Sabadell ex-TSB:

+9.1%

232.9


YoY growth:

+15.7%

TSB contribution

Sabadell ex-TSB

274.2

407.6

9.2

3Q15

295.0 295.5 295.5 295.3 296.4

1.8 0.6 5.619.2 7.5

3Q14 4Q14 1Q15 2Q15 3Q15ex-TSB

Personnel costs are contained on a comparable basis …

Personnel expenses evolutionEuros in million

Recurrent Non-recurrent

304.0296.8 296.1 301.0314.5

12

Recurrent personnel

expenses, ex-TSB :

+1.5% YoY+0.4% QoQ

416.8


Personnel expenses YoY growth:

+13.9%

264.2

1.0

3Q15

137.9 138.5 145.2 145.0 143.8

0.91.1 1.2 1.0

3Q14 4Q14 1Q15 2Q15 3Q15ex-TSB

… and so are general expenses

General expenses evolutionEuros in million

Recurrent Non-recurrent

144.8137.9

139.3146.3 146.2

13

265.2


Recurrent general

expenses, ex-TSB :

+2.0% YoY-0.8% QoQ

General expenses YoY growth:

+29.3%


2. 3Q15 Results

3. Commercial activity4. Liquidity and ALCO portfolio


6. TSB 3Q results

14

Loan book is stable

Customer funds and loans evolutionEuros in million

1Term funds include term deposits and other funds placed in the retail network. Exclude repos and deposits from institutional clients.15Note: Exchange rate EURGBP for Balance Sheet data of 0.7385 (as of 30-Sept-15).

Sep-14 Jun-15 Sep-15 % Var. YoY % Var.QoQ Jun-15 ex-TSB

Sep-15 ex-TSB % Var. YoY % Var.QoQ

Total assets 162,785 203,959 205,141 26.0% 0.6% 164,247 16 5,928 1.9% 1.0%Of which:

Gross loans to customers ex repos 118,361 148,963 148,095 25.1% -0.6% 118,416 117,768 -0.5% -0.5%Fixed income portfolio 23,993 25,741 28,256 17.8% 9.8% 24,323 26,771 11.6% 10.1%

Total liabilities 151,455 191,883 192,775 27.3% 0.5% 154, 769 156,107 3.1% 0.9%Of which:

On-balance sheet customer funds 97,375 130,370 129,957 33.5% -0.3% 95,345 95,576 -1.8% 0.2%Term funds1 53,705 49,584 47,231 -12.1% -4.7% 45,305 42,831 -20.2% -5.5%Savings accounts 11,663 32,688 32,405 177.8% -0.9% 13,495 13,644 17.0% 1.1%Current accounts 32,007 48,098 50,321 57.2% 4.6% 36,545 39,101 22.2% 7.0%

Wholesale funding 23,972 22,361 22,169 -7.5% -0.9% 21,786 21,599 -9.9% -0.9%ECB Funding 4,000 11,000 11,450 186.3% 4.1% 11,000 11,450 186.3% 4.1%

Off-balance sheet funds 29,664 35,410 35,716 20.4% 0.9% 3 5,410 35,716 20.4% 0.9%Of which:

Mutual funds 14,665 20,230 20,390 39.0% 0.8% 20,230 20,390 39.0% 0.8%Pension funds 4,367 4,362 4,242 -2.9% -2.8% 4,362 4,242 -2.9% -2.8%Third party insurance products 7,824 7,083 7,314 -6.5% 3.3% 7,083 7,314 -6.5% 3.3%

Sabadell group Ex-TSB

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0

500

1,000

1,500

2,000

2,500


Increased customer activity reflects the stronger economy …

16

New residential mortgages to individualsNumber of contracts

New consumer loansNumber of contracts

YTD+29%

YTD+29%

2015

2014

2013

2015

2014

2013

0

1,000

2,000

3,000

4,000

5,000

6,000

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 2Q15

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000


… with growth across most segments

17

New SME loansNumber of contracts

Point of Sales turnoverEuros in million

2015

2014

2013

2015

2014

2013

YTD+26%

YTD+25%

101,807 102,250

103,811104,581 104,743

3Q14 4Q14 1Q15 2Q15ex-TSB

3Q15ex-TSB

We expect the performing loan book to continue to growEvolution of performing loans, ex-TSB Euros in million

+2.9%YoY

18

Jan Apr Jul Oct

2015

€ 1,713M+49% YoY

2014

€ 1,153M

Cumulative monthly residential mortgage production, ex-TSBEuros in million

� Annual growth rate of 2.9% driven by SMEs

� Slow down in third quarter due to seasonality and price discipline

� New mortgages showing good momentum

� Mortgage book should start to grow in 2016

32,007 31,099 32,800 36,545 39,10148,098 50,321

11,663 12,176 12,68013,495 13,644

32,688 32,40553,705 51,186 49,419 45,305 42,831

49,584 47,23114,665 15,706 18,674 20,230 20,390

20,230 20,390

3Q14 4Q14 1Q15 2Q15ex-TSB

3Q15ex-TSB

2Q15 3Q15

Improving overall position in on-balance sheet customer fundsEvolution of customer funds and mutual funds Euros in million

Current accounts On-balance sheet term fundsMutual funds

Note: On-balance sheet term funds include term deposits and other funds placed in the retail network (preference shares, mandatory convertible bonds, senior debt, commercial paper and other). Exclude repos and deposits from institutional clients.Exchange rate EURGBP for Balance sheet data of 0.7385 (as of 30-Sept-15).

Stock of current accounts (ex-TSB):

+7.0% QoQ

19

Savings accounts

Stock of current accounts:

+4.6% QoQ

With the highest standards in quality of service

Source: STIGA, EQUOS (Objective Quality Analysis in Banking Networks, 3Q 2015).

Increasing the quality gap versus the rest of the s ector

Level of service quality Evolution of Sabadell quality index vs sector

20

7.54

7.21 7.327.20 7.24

6.90 6.897.16

7.69

6.956.77

6.61

6.11 6.06 6.01 6.036.29

6.74

2007 2008 2009 2010 2011 2012 2013 2014 3Q15Sabadell Sector

Improving market shares in companies

Note: 2015 data as of September 2015 or last month available.

LoansExport docum.

creditPoS turnover

10.56% 29.79% 14.54%

11.23% 31.07% 16.90%Companies

Dec.14

2015

Market shares by products

21

Improving market shares in individuals

Investment funds

Credit card turnover

Life Insurance

Household deposits

5.11% 7.64% 4.17% 5.31%

5.86% 8.00% 4.90% 5.56%Individuals

Dec.14

2015

Market shares by products

22

1

Note: 2015 data as of September 2015 or last month available.1 According to Inverco. 2 Insurance calculated per number of contracts.

2


2. 3Q15 Results


4. Liquidity and ALCO portfolio 5. Capital and risk management

6. TSB 3Q results

23

Covered bonds 58.0%

Senior debt 7.0%

Prefs + Subordinated

6.7%

ECP10.4%

Securitisation 13.1%

GGB4.8%

Maintaining a balanced funding structure

Funding structure Wholesale funding breakdown

24

Deposits70.0%

Retail issues 1.9%

Repos6.2%

ICO financing 3.2%

Wholesale funding12.3%

ECB6.4%

9.5 8.5 9.0

15.313.6

15.4

2.52.3

2.3

Mar-15 Jun-15 Sep-15

ALCO portfolio is actively managed …

Fixed income portfolio evolution, ex-TSBEuros in billion

Spanish public debt Other

Life insurance portfolio

ALCO portfolio, ex-TSBEuros in billion and in percentage

Yield 2.7%

ALCO portfolio

ALCO portfolio

25

Customer NII resilience removes pressure from the A LCO portfolio but we continue to actively manage the ex posure

We feel comfortable with the current size of the por tfolio


ALCO portfolio 24.8 22.0 24.4

% of total assets (ex-TSB) 14.8% 13.4% 14.7%

Duration (in years) 5.2 3.6 3.9

ECB liquidity position 8.9 11.0 11.5ALCO portfolio

… and maintains its geographical diversification

ALCO portfolio composition evolution, ex-TSBEuros in billion

26


Spanish Government 9.5 8.5 9.0Italian Government 6.0 5.4 7.2US Government 2.8 2.6 2.6Other Government 1.6 1.5 1.7

of which:

Portuguese Government 0.8 0.8 0.9Mexican Government 0.6 0.6 0.6Netherlands Government 0.1 0.1 0.1

Agencies 1.6 1.5 1.4Covered Bonds 1.5 0.7 0.7Corporates & Fin 1.8 1.9 1.9

TOTAL 24.8 22.0 24.4


2. 3Q15 Results



5. Capital and risk management6. TSB 3Q results

27

Comfortable capital position

28

CET1 fully loaded at

11.4%

Certainty about DTC treatment, a positive versus market expectations

11.8% 11.7% 11.8% 11.5% 11.6%

Sep.14 Dic.14 Mar.15 Jun.15 Sep.15

Common Equity Tier 1 evolution

13.44%12.74%

11.68% 10.98% 10.38%9.01% 8.51%

51.9%49.4% 51.4% 52.8% 54.5% 53.7% 55.3%

3Q14 4Q14 1Q15 2Q15ex-TSB

3Q15ex-TSB

2Q15group

3Q15group

NPL ratio has been reduced significantly from peak levels …

Evolution of NPL ratio and NPL coverageIn percentage

Note: NPL ratio is calculated including contingent risk and 20% of the APS.

Group NPL ratio expected to be c.8% by year end (single digit ex-TSB)

29

NPL ratio

NPL coverage

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Real Estate development and/or construction purposes 52.56% 52.11% 51.47% 52.17% 49.21% 47.21% 47.84%

Construction purposes non-related to real estate dev. 8.38% 7.41% 7.35% 8.08% 9.03% 8.74% 8.58%

Large corporates 6.19% 6.13% 6.30% 6.46% 6.55% 6.14% 5.41%

SME and small retailers and self-employed 13.08% 13.08% 13.11% 12.60% 12.20% 11.96% 11.38%

Individuals with 1st mortgage guarantee assets 9.85% 9.75% 9.23% 9.25% 9.12% 8.76% 8.27%

NPL ratio ex-TSB 13.94% 13.85% 13.44% 12.74% 11.68% 10.98% 10.38%

… with improvement across all segments

Evolution of NPL ratios by segment, ex-TSBIn percentage

Note: NPL ratio is calculated including contingent risk and 20% of the APS. 30

25,878 25,860

25,347

24,75823,922

23,18922,350

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

17,727 17,386 16,777 15,910 14,863 13,962 13,122

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

The stock of NPLs continues the downward trend …

NPL evolution, ex-TSB Data include 20% of APS. Euros in million €0.8bn further reduction of

NPLs during 3Q15

On track with the business plan targets

On-balance sheet RE assets evolution, ex-TSBData include 20% of APS. Euros in million

Total problematic assets, ex-TSBData include 20% of APS. Euros in million

Note: NPLs include contingent risk. 31

8,151 8,474 8,569 8,848 9,059 9,227 9,228

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

… with improved dynamics in the last quarters

Evolution of NPLs and RE assets, ex-TSB Data include 20% of APS. Euros in million

The improvement in problematic assets continues

NPAs are reduced by €839M in the quarter

32

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Ordinary net entries 25 -244 -385 -569 -802 -731 -540Change in RE assets 77 323 96 279 211 167 1Net entries + Change in RE assets 102 79 -289 -290 -591 - 563 -539

Write-offs 265 97 224 298 245 170 300

Re assets and NPL quarterly change -163 -18 -513 -588 -8 36 -733 -839

Improving real estate sales results

Number of foreclosed assets sold and discount versus gross value

33

We are selling more assets at a lower discount

50% 44% Discount versus gross value

Number of units sold

7,2117,654

9M14 9M15


2. 3Q15 Results




6. TSB 3Q results

34

Key Highlights

35

� Continued positive progress delivered in 3Q

� Mortgage Intermediary growth a standout success

� Ongoing recognition of TSB service quality

� Sabadell integration progressing smoothly (migration assessment underway)

� Interest rate environment remains challenging

Further Strategic Progress Delivered

36

(1) Source: CACI Current and Savings Account Market Database (CSDB) which includes current, packaged, youth, student and basic bank accounts, and new account openings excluding account upgrades. Data presented on a 2 month lag. (2) NPS is based on the question “On a scale of 0-10, where 0 is not at all likely and 10 is extremely likely, how likely is it that you would recommend TSB to a friend or colleague?” NPS is the percentage of TSB customers who score 9-10 after subtracting the percentage who score 0-6.

� Share of current account gross flow 6.5%(1) in latest quarter

� Gross flow above 6% target for 7th consecutive quarter

� Bank NPS improved by 5 points from Q2 to 18(2)

� ‘Which’, Best Branch Based Customer Service Brand (2nd year running)

� Continued progress on cost efficiency

� Strong progress in mortgage broker channel; applications of around GBP3.7bn in the 3 quarters to September 2015, GBP1.8bn in Q3

� Franchise growth of GBP2bn in 2015 vs. GBP1.5bn guidance

Provide great banking to

more people

Help more People to

borrow well

Provide the kindof banking peoplewant and deserve

NPS Progress encouraging

37

NPS evolutionMortgage Gross Lending

3Q 15 NPS improves to 18, an increase of 5

Note: Net Promoter Score (NPS) is based on the question “On a scale of 0-10, where 0 is not at all likely and 10 is extremely likely, how likely is it that you would recommend TSB to a friend or colleague?” NPS is the percentage of TSB customers who score 9-10 after subtracting the percentage who score 0-6.

-22.2

-15.3-13.0

-8.3

-1.8

1.1

5.7

11.514.1 12.3

14.918.2

-25

-15

-5

5

15

25

Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15

Return to improving trend after blip in 2Q caused by takeover uncertainty

Update on the TSB 3Q business & financials

38

Note: TSB data showed in individual basis and in GBP. Pro forma excludes unaudited profit for 1Q 2015 and reflects the Credit Card and Overdraft customer lending portfolios calculated on a consistent Internal Ratings Based (IRB) basis. These portfolios have been rated on an IRB approach from 2Q 2015.

3Q15 % YoY % QoQ

Customer deposits 25.4 5.0% 2.0%

Customer lending 22.3 1.4% 2.8%Of which:Mortgage enhancement 2.4 -17.2% -7.7%

CET1 Capital Ratio (pro forma) 20.2% +1.4pp +0.3pp

3Q15 % QoQ

Franchise Net Interest Income 177.7 2.1%

Franchise total Income 210.3 1.6%

Franchise operating expenses -172.5 -10.5%

Group management profit 32.4 230.6%

Group AQR 0.37% -1pp

Franchise NIM 3.60% -8pp

Customer funds and loans evolutionGBP in billion

Main data 3Q15 resultsGBP in million

Intermediary mortgage distribution accelerates franchise lending growth

TSB is executing swiftly its capacity to improve its cost to income ratio

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3Q15 Results presentation - Banco Sabadell · 2020-06-26 · results. No person is under any...

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