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1 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
ANALYST & INVESTOR CALL FY16 RESULTS
Amsterdam, February 6, 2016
Vincent Germyns, Chairman of the Executive Board
Evert Kooistra, Board Member, Chief Financial & Risk Officer
BinckBank N.V.
Highlights16Q4
Businessupdate
Financialposition
Wrap upand Q&A
AGENDA
BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 20172
3 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
HIGHLIGHTS 16Q4
Eventful 16Q4, significantly volatile and strong quarter
- Higher trading volumes
- Increased revenues per trade € 11.09 (16Q3: €10.25)
- Number of transactions 2.0m (16Q3: 1.8m or +13%)
- Income from operating activities increased with 16% vs 16Q3
One-off charges of € 4.5m:
- Impairment on investment in TOM had a negative effect of € 1.7m on adjusted net
profit
- Settlement Alex claims € 2.75m (before tax), settlement materially de-risks Alex
Adjusted net result € 7.5m (+11% vs 16Q3)
Adjusted net earnings per share € 0.11
Proposed final dividend € 0.19 per share
Highlights16Q4
Businessupdate
Financialposition
Wrap upand Q&A
AGENDA
BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 20174
5 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
THE NETHERLANDS• Transactions in 16Q4: 1.4m +12% (16Q3: 1.3m)
• Income from operating activities in 16Q4: +17% € 31.5m (16Q3: € 26.9m)
• Result from operating activities in 16Q4: + 7% € 17.0m (16Q3: € 15.8m)
• Average net income per transaction in 16Q4: +11% €12.35 (16Q3: € 11.12)
Business FY16:
• Number of transactions FY16: 5.6m
• Income from Binck turbos +36%
• Growth of almost € 1bn in AuA of Independent Asset managers to € 7.4bn
• AuM Alex Asset Management decreased in 16Q4 to € 1.3bn (outflow € 160m)
• Launched “Switch Position”, a new trading functionality in Pro and 360.
24
26
28
30
32
15Q4 16Q1 16Q2 16Q3 16Q4
mill
ion
s
Income from Operating Activities
-
5
10
15
20
15Q4 16Q1 16Q2 16Q3 16Q4
mill
ion
s
Result from Operating Activities
1.1
1.2
1.3
1.4
1.5
1.6
15Q4 16Q1 16Q2 16Q3 16Q4
mill
ion
s
Transactions NL
6 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
BELGIUM
• Transactions in 16Q4: +14% 168,901 (16Q3: 147,578)
• Income from operating activities in 16Q4: +16% € 3.0m (16Q3: € 2.6m)
• Result from operating activities in 16Q4: +19% € 0.9m (16Q3: € 0.8m)
• Average net income per transaction in 16Q4: +5% €12.88 (16Q3: € 12.27)
Business FY16:
• Speculation tax in 2016 had a negative impact on transaction volumes and was abolished as per 1 January 2017
• Marketing campaign for trading in October. Brand awareness amongst investers increased significantly
0
50
100
150
200
250
15Q4 16Q1 16Q2 16Q3 16Q4
Th
ou
san
ds
Transactions BE
2.2
2.4
2.6
2.8
3.0
15Q4 16Q1 16Q2 16Q3 16Q4
Mill
ion
s
Income from Operating
Activities
0.0
0.5
1.0
1.5
15Q4 16Q1 16Q2 16Q3 16Q4
Mill
ion
s
Result from Operating
Activities
7 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
FRANCE
• Transactions in 16Q4: +11% 230,360 (16Q3: 207,071)
• Income from operating activities in 16Q4: +4% € 2.1m (16Q3: € 2.0m)
• Result from operating activities in 16Q4: -106% flat (16Q3: € 0.5m)
• Average net income per transaction in 16Q4: -9% €5.84 (16Q3: € 6.42)
Business FY16:
• New Management Team in place
• Top 10 customer event to gather feedback from very active customers
• Renewed partnership with ProRealTime and free trade operations
0
50
100
150
200
250
300
15Q4 16Q1 16Q2 16Q3 16Q4
Th
ou
san
ds
Transactions FR
1.90
1.95
2.00
2.05
2.10
15Q4 16Q1 16Q2 16Q3 16Q4
Mill
ion
s
Income from Operating Activities
-0.1
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
15Q4 16Q1 16Q2 16Q3 16Q4
Mill
ion
s
Result from Operating Activities
8 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
ITALY
• Transactions in 16Q4: +34% 144,636 (16Q3: 107,759)
• Income from operating activities in 16Q4: +23% € 0.9m (16Q3: € 0.8m)
• Result from operating activities in 16Q4: +182% € 0.1m (16Q3: € 0m)
• Average net income per transaction in 16Q4: +8% €4.80 (16Q3: € 4.46)
Business FY16:
• Active high quality customer base
• Partnership with Banca Ifigest: BinckBank is reseller for Fundstore
0
20
40
60
80
100
120
140
160
15Q4 16Q1 16Q2 16Q3 16Q4
Th
ou
san
ds
Transactions IT
0.0
0.2
0.4
0.6
0.8
1.0
15Q4 16Q1 16Q2 16Q3 16Q4
Mill
ion
s
Income from Operating
Activities
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
15Q4 16Q1 16Q2 16Q3 16Q4
x 1
00
00
0
Result from Operating
Activities
9 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
/ ‘Binck Savings’ – NetherlandsProviding easy access to the European savings market
/ ‘Asset Management’ – BelgiumDigital investment solution for accessible wealth management
/ Agile Transformation Programme and Design ThinkingTo reduce time to market and to increase customer focus
STRATEGIC ROADMAP
N E W I N I T I AT I V E S 1 6 Q 4
10 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
NETHERLANDS: ‘BINCK SAVINGS’
TIMELINE / Partnership with back-end partner Safened in 16Q3
/ Pilot with selected Dutch clients in 16Q4
• Minimum Viable Product (MVP)
• Gain insights into customer experience
• Update Binck app -> monitor deposits on smartphones
/ Search for partnerships with banks who seek funding (ongoing)
/ Expected market introduction in NL 17H1
11 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
BELGIUM: ‘D ISCRET IONARY ASSET MNGT ’ (1 /2 )
VALUE PROPOSITION / Asset management solution accessible for mass affluent (> €25k and 5 yrs horizon)
Low minimum investment
Asymmetric risk model
Personal investment plan
Diversification of risk: funds contain Exchange Traded Funds (ETFs)
The use of underlying ETFs makes it cost effective
Transparent pricing structure (0.6%)
Asset Management Market in Belgium: 279bn (source: BEAMA)
CLIENT FOCUS
/ Investors looking for digital discretionary asset management
/ Online onboarding tool
12 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
BELGIUM: ‘D ISCRET IONARY ASSET MNGT ’ (2 /2 )
/ Benefits for Binck:
Recurring income based on assets
/ Costs for Binck:
Limited amount of people, optimization of the platform and marketing
expenses
/ Introduced in Belgium in 16Q4
/ Start first marketing campaign in January 2017:
Goal: brand and product awareness
/ Roadshow for personal client interaction in cities throughout Belgium in 17Q1
BENEFITS & COSTS
TIMELINE
Highlights16Q4
Businessupdate
Financialposition
Wrap upand Q&A
AGENDA
BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 201713
14 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
15 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
IMPAIRMENT THE ORDER MACHINE (TOM)
On the 20th of October 2016, TOM shareholders have
agreed to actively support TOM in finding a new strategic
partner that will enable TOM to realise the next step in
its development.
Pending the outcome of this process, BinckBank has
fully impaired its investment in TOM, resulting in a one-
off additional charge of €1.7 million.
Net interest income 16Q4 € 7.2m
Size Dutch residential mortgage book: 16Q4 € 520m, avg yield 185 bps
Expect to grow the mortgage book to approx. € 750m by end 17Q3
16Q4 interest income derived from mortgages € 2.1m (FY16: € 3.7m)
16 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
NET INTEREST INCOME (1/2)
6.2 6.4 5.86.9 7.2
0123456789
10
15Q4 16Q1 16Q2 16Q3 16Q4
€ m
illio
ns
NET INTEREST INCOME
0 1 12
404
520
0
100
200
300
400
500
15Q4 16Q1 16Q2 16Q3 16Q4
€ m
illio
ns
MORTGAGE BOOK
Collateralised loans 16Q4 € 438m (16Q3: € 475m)
Average yield on collateralised loans: approx. 369 bps (3.69%)
Investment portfolio € 1.5bn (16Q3: € 1.6bn)
Average yield investment portfolio 43 bps (0.43%)
17 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
NET INTEREST INCOME (2/2)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
15Q4 16Q1 16Q2 16Q3 16Q4
€ m
illio
ns
INTEREST INCOME DRIVERS
Mortgages
Collateralised lending
Inv. Portfolio
Banks
Cash
1.9 1.9 1.8 1.61.5
502 453 479 475 438
-
100
200
300
400
500
600
15Q4 16Q1 16Q2 16Q3 16Q4
€ m
illio
ns
COLLATERALISED LENDING
18 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
NET FEE AND COMMISSION INCOME
0.0
0.5
1.0
1.5
2.0
2.5
15Q4 16Q1 16Q2 16Q3 16Q4
€ m
illio
ns
TRANSACTIONS
Transactions IT
Transactions FR
Transactions BE
Transactions NL
2.01.81.9
2.12.0
20.3 20.5 18.6 18.022.1
7.13.6
3.4 3.5
3.6
3.23.7
4.9 3.2
3.9
-
5
10
15
20
25
30
35
40
15Q4 16Q1 16Q2 16Q3 16Q4
€ m
illio
ns
NET FEE & COMMISSION INCOME
Transaction related Asset management Other
27.8 26.924.8
29.630.6
Average net fee per transaction 16Q4 € 11.09 (16Q3: € 10.25 or +8%). Increase = € 0.84 per transaction
Net outflow Alex AM € 160m (16Q3: 78m)
Assets under management € 1.280m
19
ADJUSTED OPERATIONAL EXPENSES 16Q4
12.7 13.5 12.5 12.0 13.6
12.5 13.614.1 15.5
17.2
1.3 1.2 1.1
1.1
0
5
10
15
20
25
30
35
40
15Q4 16Q1 16Q2 16Q3 16Q4
€ m
illio
ns
Employee expenses Other operational costs Depreciation and amortisation
27.8
31.9
28.528.426.8
BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
20 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
ADJUSTED OPERATIONAL EXPENSES FY16
56.6 53.0 51.6
6.25.7 4.7
57.150.1 60.3
0
50
100
150
2014 2015 2016
€
mill
ion
s
Other operating costs Depreciation and amortisation Employee expenses
119.9
108.9116.6
21 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
INCREASE OTHER OPERATING COSTS €10.2M
IFRS Equity FY16 € 397.0m (FY15: € 437.5m)
Tier 1 Capital FY16 € 245.5m (FY15: € 253.6m)
Capital ratio FY16 31.9% (FY15: 40.2%).
Leverage ratio FY16 6.7% (FY15: 7.1%)
22
FINANCIAL POSITION
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Le
vera
ge
ra
tio
Ca
pit
al r
ati
o
Total Capital Ratio (Pilar 1) Leverage Ratio (LR)
0
50
100
150
200
250
300
15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4
€ m
illio
ns
Available capital LR3% LR4% LR5%
AVAILABLE CAPITAL VS REQUIRED CAPITAL CAPITAL & LEVERAGE RATIO
BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
Highlights16Q4
Businessupdate
Financialposition
Wrap upand Q&A
AGENDA
BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 201723
24 BinckBank N.V. Analyst & Investor Call FY16 Results, Amsterdam, 6 February 2017
1) The four 2016 targets have been achieved:
1. All retail activities are now on the same platform after the French migration in
16Q1
2. Introduction of new discretionary asset management service in Belgium in 16Q4
3. New Binck Savings service in NL. Pilot with selected Dutch clients in 16Q4 and
expected market introduction in 17H1
4. Investment of € 500m in Dutch residential mortgages. End 2016 € 520m
invested.
2) Settlement Alex claims ends uncertainty around pending claims
3) In Redesign Binck phase further transforming the business on all levels.
Thank you!
WRAP UP FOLLOWED BY Q&A