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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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
-
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%
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
• 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)
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
8 BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
9 BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
• 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
11 BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 201811
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
+7%
13
G r o u p l e v e l
Interest generat ing assets
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
• 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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
• 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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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
BinckBank N.V. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018
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. Analyst & Investor Call 18H1 Results, Amsterdam, 23 July 2018