Key Risk & Performance Indicators

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Presentation transcript:

Key Risk & Performance Indicators European Banks Key Risk & Performance Indicators Dashboard 3Q2016

Challenges for European Banks 3Q2016 Risks - Pillar 11 Level Trend Risk Drivers Slow reduction of NPLs, structural and market impediments, risk of rising impairments Heightened market volatility, risk from declining market liquidity Risks from IT outsourcing, fragmented and ageing IT systems, cyber attacks Credit risk impediment = Hindernis, Erschwerung Market risk Operational risk 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016

Challenges for European Banks 3Q2016 Concentration risk, IRRBB Risks - Pillar 21 Level Trend Risk Drivers Low interest rate environment, increased appetite for higher risk exposures Existing and new cases of misconduct, lengthy litigation processes Low interest and fee income, stickiness of costs Concentration risk, IRRBB Reputational and legal Profitability 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016

Challenges for European Banks 3Q2016 Risks - Liquidity & Funding1 Level Trend Risk Drivers Reduced issuance volumes and heightened market volatility Important role of central bank funding and deposits. Banks remain vulnerable in their funding mix. Access to funding and maturity distribution Funding structure 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016

Challenges for European Banks 3Q2016 Regulatory and legal environment Risks - Environment1 Level Trend Risk Drivers RWAs (e.g. sovereign risk, IRRBB), resolution Fragmentation of asset quality and profitability in EU high; further fragmentation after Brexit Risk from large debt overhang remains high Regulatory and legal environment Fragmentation Sovereign Risk 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016

European Banks (EU28) - September 2016 Solvency (weighted Average)1 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

Solvency European Banks - Selected Countries CET 1 Ratio 3Q20161 EBA best 14% EBA worst 11% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016, CET 1 ratio fully phased-in

Selection of Large European Banks CET1 Ratio 2Q20161 CET Ratios Large U.S. BHCs JPM 11.9% BAC 10.6% WFC C 12.5% 1 Investor Relations websites banks, fully loaded, retrieved from 2Q2016 Results or Investor Presentations

European Banks (EU28) - September 2016 Nonperforming Loans (weighted Average)1 EBA worst 8% EBA best 3% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

Asset Quality European Banks - Selected Countries Nonperforming Loans (NPL) 3Q20161 47.1 % EBA worst 8% EBA best 3% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (NPL to total gross loans and advances)

European Banks (EU28) - September 2016 Coverage Ratio (weighted Average)1 EBA best 55% EBA worst 40% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

European Banks (EU28) - September 2016 Liquid Assets to ST-Liabilities (weighted Average)1 EBA best 30% NA EBA worst 20% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

European Banks (EU28) - September 2016 Loan-to-Deposit Ratio (weighted Average)1 EBA worst 150% EBA best 100% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

Loan-to-Deposits Ratio 3Q20161 Balance Sheet Structure European Banks - Selected Countries Loan-to-Deposits Ratio 3Q20161 EBA worst 150% EBA best 100% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (loan-to-deposit ratio for households and non-financial corporations)

European Banks (EU28) - September 2016 Debt-to-Equity Ratio (weighted Average)1 EBA worst 15x EBA best 12x 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

European Banks (EU28) - September 2016 Net Interest Margin (weighted Average)1 NIM Large U.S. Banks2: 3.10 % 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets) 2 U.S. banks: JPM, WFC, Citi, BAC, USB, PNC, COF, BB&T, SunTrust, FTB

Profitability European Banks - Selected Countries Net Interest Margin (NIM) 3Q20161 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016

European Banks (EU28) - September 2016 Return on Assets (weighted Average)1 Moody’s „strong“ 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

Profitability European Banks - Selected Countries Return on Assets (ROA) 3Q20161 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016

European Banks (EU28) - September 2016 Return on Equity (weighted Average)1 EBA best 10% EBA worst 6% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

Profitability European Banks - Selected Countries Return on Equity (ROE) 3Q20161 EBA best 10% EBA worst 6% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016

Selection of Large European Banks ROE Ratio FY20151 CET Ratios Large U.S. BHCs WFC 12.1% JPM 10.2% C 7.9% BAC 6.3% 1 Investor Relations websites banks

European Banks (EU28) - September 2016 Cost-to-Income Ratio (weighted Average)1 EBA worst 60% EBA best 50% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016 (weighted by total assets)

Profitability European Banks - Selected Countries Cost-Income-Ratio 3Q20161 EBA worst 60% EBA best 50% 1 European Banking Authority, Risk Dashboard, Data as of 3Q2016

CDS Price / 5-Year Senior Debt International Banks - March 20171 in bps text 1 SNL Financial – March 7, 2017

Market Capitalization International Banks - March 20171 in US-$ billion Market Capitalization (Market Cap) 1 SNL Financial – March 7, 2017

International Banks - March 20171 Price-to-Book Ratio International Banks - March 20171 Price to Book Value 1 SNL Financial – March 7, 2017

Standard & Poor’s LT-Rating International Banks - March 20171 AAA AA+ AA AA- C A+ Finanzkraft C A C A- BBB+ BBB BBB- C = Cooperative banks 1 Investor Relations Websites Banks - March 7, 2017

Vielen Dank für Ihre Aufmerksamkeit! Peter Bürger Risk & More Peter Bürger Risk & More Consulting pb@risk-and-more.com www.risk-and-more.com Tel. Büro 06195-977610 Tel. mobil 0151-25678555