BinckBank N.V.€¦ · INNOVATIVE CONCEPT LAUNCHED-MVP • Binck is the first bank to launch this...

1 BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018

ANALYST & INVESTOR CALL 18H1 RESULTS

Amsterdam, July 23, 2018

Vincent Germyns, Chairman of the Executive Board

Evert Kooistra, Chief Financial & Risk Officer

BinckBank N.V.

AGENDA

2

Business update

Financialhighlights

Wrap upand Q&A

AGENDA

BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018

3

Executive summary

• Trading: solid business performance & stronger position

• Investing: initial customer inflow in new business propositions

• Savings: MVP launched in February

• Full focus on Relaunch BinckBank & parallel international roll out of investing & savings

BUILDING BLOCKS IN PLACE

READY FORCOMMERCIAL

RELAUNCH

SOLIDMID YEAR RESULT

2018

• Half year result increased to € 22.2m (17H1: € 2.1m)

• EPS 18H1 € 0.33 (17H1 € 0.03)

• Sale Think ETF Asset Management € 8.1m

• Proposed interim-dividend € 0.13


-

100

200

300

400

500

17H1 17H2 18H1

Tho

usa

nd

s

Number of transactions Italy

-

100

200

300

400

500

600

17H1 17H2 18H1

Tho

usa

nd

s

Number of transactions France

-

100

200

300

400

500

600

17H1 17H2 18H1

Tho

usa

nd

s

Number of transactions Belgium

-

1,000

2,000

3,000

4,000

17H1 17H2 18H1Th

ou

san

ds

Number of transactionsthe Netherlands

4

• Increased trading activity in all countries over 18H1, all time high in Italy

• Total volume of transactions 18H1: 4.989 mln close to all time high of 15H1: 5.020 mln

• Higher number of foreign branch transactions to total Binck transactions

• Strong volume and client appetite for Binck turbo in the Netherlands

T R A D I N G ( 1 / 2 )

T R A D I N G AC T I V I T Y I N C R E A S E D I N A L L C O U N T R I E S

+33%

+19%

+11%

+33%


3.541507

559

382

5

• New price plan in the Netherlands well received

- Revenue and customer parameters post introduction exceed expectations

- More balanced income stream. Lower transaction rates for active customers to improve competitiveness and reduce churn. Introduction service fee to monetise assets under administration (previously non-revenue generating customers)

- Discounts for customers signing up to multiple products to increase share-of-wallet

• Average income per transaction down in 18H1: € 8.35 (17H1: € 10.44)

- Impact of new price plan in the Netherlands (18Q2) – offset by service fee

- Strong appetite and volume for zero-fee Binck turbo (introduction 17Q4)

- Higher number of lower priced foreign branch transactions with regard to total Binck transactions

• IAM business posts sustained strong growth: AuA 18H1: € 9.9 billion, up € 0.4 billion YOY

• Customer intimacy:

- Renewed education platform for Binck Academy in the Netherlands

- Organisation of Personal Finance Day event in the Netherlands

- Participation in Investing Trading Forum in Rimini in Italy

- High-profile partnership with Nicolas Chéron to bring broadcasts to French customers

- Participation in Invest360Fair in Belgium

T R A D I N G ( 2 / 2 )

T R A D I N G H I G H L I G H T S 1 8 H 1


6

I N V E S T I N G

H I G H L I G H T S I N V E S T I N G 1 8 H 1


• NNA progresses towards inflection point. Inflow from new services does not compensate yet for the regular pattern of outflow at Alex Asset Management (part II slide 13)

Building track record and working on new positioning by Rebranding

• Alex Asset Management portfolio performance beneficial for customers

• Alex Asset Management part of Rebranding exercise 18H2

• Binck Comfort and Forward performance close to benchmark

• Binck Forward awarded Best online Wealth Manager in the Netherlands (May 2018 survey IEX/ beleggingsmatch)

https://www.beleggingsmatch.nl/Documents/beleggen-vakantiegeld-onderzoek-2018.pdf

7

S AV I N G S

I N N OVAT I V E CO N C E P T L A U N C H E D - M V P

• Binck is the first bank to launch this

concept in the Netherlands

• 2 partner banks connected

• 2 additional partner banks with attractive

propositions onboarding soon

• Above-the-line marketing commenced

mid 18Q2

• € 15.8 million in client deposits raised,

deposits growth on the rise



C U S T O M E R S AT I S F A C T I O N

CO N S I S T E N T I M P R OV E M E N T

• Front office customer centricity drive paying off (Binck self-investing)

• More interaction with customers, both online and offline increasing satisfaction

7.1

7.5

8.2

7.3

7.9

7.0

7.6

8.3

7.67.5

7.3

7.7

8.2

7.67.7

7.3

7.7

8.2 8.2 8.2

6

6.5

7

7.5

8

8.5

the

Netherlands

Binck NL (excl.

Alex)

Belgium France Italy

Customer satisfaction per country

FY15 FY16 FY17 18Q1


N E W B I N C K

S T R AT E G I C T R A N S F O R M AT I O N P R O C E S S

Deliverables 18H1

• Completing product suite in the Netherlands by launching Binck Savings. First country to do so

• New price plan BU NL and Binck zero-fee turbo balancing revenue streams (transactional towards recurring)

Planned deliverables

More room for customer-centric initiatives following wall of regulatory projects

• Investing: launch of digital wealth management solution in France in 18H2

• Migration of users of legacy platform ProTrader-desktop to ProTrader-web

Full focus on customer centricity, rebranding & positioning in preparation of commercial Relaunch

AGENDA

10

Businessupdate

Financialhighlights

Wrap upand Q&A

AGENDA


• Net result 18H1: € 22.2m (17H1 € 2.1m)

• Net earnings per share 18H1: € 0.33 (17H1 € 0.03)

• Net earnings per share 18Q2 € 0.20

• Contribution of sale Think ETF’s: € 8.1m

18H1 F inanc ia l h ighl ights


KEY F IGURES (CONSOLIDATED) 29 28 33 72

(amounts in € 000's) 18Q2 18Q1 ΔQ1 18H1 17H1 Δ7H1

Customer figures

Number of transactions 2.307.544 2.681.802 -14% 4.989.346 3.873.985 29%

Assets under administration 26.806.249 26.033.329 3% 26.806.249 24.695.183 9%

Assets under management 1.025.084 1.032.531 -1% 1.025.084 1.164.706 -12%

F inancia ls

Total income from operating activities 36.323 39.595 -8% 75.918 75.310 1%

Total operating expenses 28.930 28.216 3% 57.146 70.194 -19%

Result from operating activities 7.393 11.379 -35% 18.772 5.116 267%

Result after tax 13.696 8.516 61% 22.212 2.122 947%

Net earnings per share (in €) 0,20 0,13 0,33 0,03

Cost / income ratio 80% 71% 12% 75% 93%

Cap ita l adequacy

Common equity Tier 1 253.188 251.043 1% 253.188 246.744 3%

Capital ratio 31,9% 32,7% 31,9% 31,4%

Leverage ratio 6,2% 6,8% 6,2% 6,5%

14.915.2

16.0

14

15

15

16

16

17

17H1 17H2 18H1

Mill

ion

s

Net Interest Income per HY

• Net Interest Income 18H1 increased with 7% from 17H1: €14.9m to 18H1: €16.0m

• Increase NII primarily driven by continued high level collateralised lending and continued growth in mortgages

• High cash balance (as result of client behavior) pressurise net interest margin

12

G r o u p l e v e l

Net Interest Income (NI I ) 18H1


+7%

13

G r o u p l e v e l

Interest generat ing assets


• Cash & banks as per 18H1 very high at €1.5 billion (yield -0,40%)

• Size of the Investment portfolio 18H1: € 935 million

• Average yield Investment portfolio is 42 bps, duration 1.5 years

• Dutch residential mortgage book 18H1: €767m, avg. yield 180 bps, duration 5.9 years

• Collateralised lending in 18H1 increased to € 620m (FY17 € 567m), growth of 9%

• 18H1 Average yield on collateralised loans: approx. 350 bps (FY17 343 bps)

€ 1,193 € 1,138

€ 1,541

€ -

€ 200

€ 400

€ 600

€ 800

€ 1,000

€ 1,200

€ 1,400

€ 1,600

€ 1,800

17H1 FY17 18H1

Millions

Cash & banks

€ 731 € 736

€ 767

€ 710

€ 720

€ 730

€ 740

€ 750

€ 760

€ 770

17H1 FY17 18H1Millions

Mortgages

€ 516 € 567

€ 620

€ -

€ 100

€ 200

€ 300

€ 400

€ 500

€ 600

€ 700

17H1 FY17 18H1

Millions

Collateralised lending

€1,212 €1,139

€935

€ -

€ 200

€ 400

€ 600

€ 800

€ 1,000

€ 1,200

€ 1,400

17H1 FY17 18H1

Millions

Investment portfolio

*Presentation after change in accounting principle relating to accrued interest as per January 1st 2018

* * *

14

G r o u p l e v e l

Net Fee & Commission Income 18H1

• Net Fee & Commission Income increased by 4% from € 53.5m FY17H1 to €55.5m FY18H1

• Net revenue growth consists of € 0.5m gross revenue growth and € 1.5m from lower stock exchange & clearing costs

• New revenue streams from service fees as part of the new price plan NL


40.4 38.2 41.6

5.8 7.25.2

7.3 6.98.6

0

10

20

30

40

50

60

17H1 17H2 18H1

Mill

ion

s

Net Fee & Commission Income 18H1

Transaction Related Asset Management Other

53,5 52,355,5

15

G r o u p l e v e l

Drivers Net Fee & Commiss ion Income


3,9 3,8

5,0

1.165

1.091

1.025

10.449.98

8.35

5.00

6.00

7.00

8.00

9.00

10.00

11.00

17H1 17H2 18H1

Average revenue per transaction

5.8

7.2

5.2

0

1

2

3

4

5

6

7

8

17H1 17H2 18H1

Mill

ion

s

Asset management Income

507

545552

480

490

500

510

520

530

540

550

560

17H1 FY17 18H1

AEX

€ 1.165

€ 1.091€ 1.025

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

17H1 17H2 18H1

Billions

Assets under management (AuM)

€ -222

€ -129

€ -51

€ -250

€ -200

€ -150

€ -100

€ -50

€ -

17H1 17H2 18H1Millions

Net new assets (NNA)

3.874 3.831

4.989

-

1

2

3

4

5

6

17H1 17H2 18H1

Mill

ion

s

Transaction volume

16

G r o u p l e v e l

Other income from operat ing act iv i t ies 18H1


7.06.1

4.5

0

1

2

3

4

5

6

7

8

17H1 17H2 18H1

Mill

ion

sOther Net Income 18H1

• Other income from operating activities:• Result on financial instruments 87%• Other income 13%

• Decrease of other income due to the sale of Able and termination of BPO-activities

17

G r o u p l e v e l

Tota l operat ing expenses 18H1


• Operating expenses decreased with € 13.1 million from 17H1: € 70.2 to 18H1: € 57.1 due to the divestment

a.o. of non core activity (Able: € 4 mln) and termination of the depreciation on Alex intangibles (€ 10 million)

26.9 26.2 24.8

13.2 13.62.6

30.1 31.6

29.7

0

10

20

30

40

50

60

70

80

17H1 17H2 18H1

Mill

ion

s

Operating Expenses 18H1

Employee expenses Depreciation & amortisation Other operating expenses

70,2 71,4

57,1

• On January 19Th announced sale of Think ETF Asset Management B.V.

• Transaction was subject to approval of regulators

• Closing of deal on June 29th 2018

• Think ETF’s Asset Management B.V. profit after sale of € 8.1 million

18

G r o u p l e v e l

Share in resu l t o f assoc ia tes


Capital

• IFRS Equity 18H1: €398.7m (FY17: €394.9m)

• Tier 1 Capital 18H1: € 253.2m (FY17: €249.5m)

Ratio’s

• Capital ratio 18H1: 31.9% (FY17: 30.8%)

• Leverage ratio 18H1: 6.2% (FY17: 6.6%)

• Risk weigthted assets 18H1: €793.9m (FY17: € 809.4m)

19

G r o u p l e v e l

F inanc ia l pos i t ion FY18H1


30.8%

31.9%

30%

31%

31%

32%

32%

FY17 18H1

Capital ratio

€ 809

€ 794

€ 785

€ 790

€ 795

€ 800

€ 805

€ 810

€ 815

FY17 18H1

Millions

Risk weighted assets

€ 250 € 253

€ 100

€ 120

€ 140

€ 160

€ 180

€ 200

€ 220

€ 240

€ 260

€ 280

FY17 18H1

Millions

Core Tier I equity

AGENDA

20

Business update

Financialhighlights

Wrap upand Q&A

AGENDA


21

WRAP UP FOLLOWED BY Q&A

• Core business performing well

• New price plan improves competitive position in the Netherlands

• After the launch of Binck Savings is the Netherlands our first country

with a full range of services

• Focus on Relaunch: rebranding to BinckBank & positioning

• Investing: roll out of digital wealth management solution in France

planned for 18H2


BinckBank N.V.€¦ · INNOVATIVE CONCEPT LAUNCHED-MVP • Binck is the first bank to launch this...

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