Credit Europe Bank NV

Transcription

1 MAY 19, 2014 BANKING COMPANY PROFILE Credit Europe Bank NV Amsterdam, Netherlands Table of Contents: COMPANY OVERVIEW 1 FINANCIAL HIGHLIGHTS (AS REPORTED) 2 BUSINESS ACTIVITIES 2 DISTRIBUTION CAPACITY AND MARKET SHARE 4 OWNERSHIP AND STRUCTURE 4 Subsidiaries 5 COMPANY MANAGEMENT 5 COMPANY HISTORY 6 PEER GROUP 6 SUBSIDIARIES RATED BY MOODY S 6 RELATED WEBSITES AND INFORMATION SOURCES 7 MOODY S RELATED RESEARCH 7 Analyst Contacts: LONDON Arif Bekiroglu Assistant Vice President Analyst [email protected] Carola Schuler Managing Director [email protected] Company Overview Credit Europe Bank NV (Credit Europe Bank) is a Netherlands-based, internationally oriented bank that provides corporate clients with project finance, international trade and commodity finance, and working capital loans. Moreover, the bank provides retail customers with deposit-taking, loan, credit card and insurance services. Its clients also include small and medium-sized enterprises (SMEs). As of 31 December 2013, Credit Europe Bank serviced over 4.2 million customers through a network of 184 branches, 21,870 sales points, 957 ATMs and over 22,600 point-of-sale terminals in 11 countries. Its main markets include Russia, Romania, Turkey, and developed European countries such as the Netherlands and Germany. The bank was established in 1994 as Finansbank (Holland) NV, and was rebranded as Credit Europe Bank during following the sale of Finansbank A.S. to National Bank of Greece. As of 31 December 2013, Credit Europe Bank was wholly owned by Credit Europe Group NV, which in turn was ultimately owned by Hüsnü M. Özyeğin through the investment company FIBA Holding AS. Source: Company Reports (annual report Dec 2013 and Dec 2010), Moody s research This report, exclusively provided to you by Moody s, presents a convenient summary of as reported, publicly available information. The information is not adjusted for Moody s analytic purposes. For Moody s Ratings, Opinion and Analytics on this company, please [Click here]. To access the latest Moody's Credit Opinion on this company, please [Click here].

2 Financial Highlights (as Reported) Note: The financials presented below are those reported by the entity and are not adjusted for Moody s analytic purposes. For Moody s generated ratios on Credit Europe Bank NV, please see <Credit Europe Bank NV page on moodys.com>. EXHIBIT 1 Latest Full-Year Results Credit Europe Bank NV (in Million) 31-Dec Dec Dec-11 % Change 13/12 % Change 12/11 Total Assets 10,158 9,237 10, (12.07) Total Shareholders Equity (1.16) (12.16) Shareholders Equity excluding Minority Interest (0.42) (11.78) Total Capital 1, (7.42) Tier 1 Ratio (%) (100) bps (47) bps Net Income (17.18) Net Income Attributable to Equity Holders (16.49) Note: Consolidated financials are considered Source: Company Reports (annual report Dec 2013 and Dec 2012) Business Activities Credit Europe Bank offers project finance, international trade and commodity finance, and working capital loans to its corporate clients, and deposit-taking, loan, credit card and insurance services (through external insurance providers) to its retail customers. Its clients also include SMEs. Credit Europe Bank operates through the following seven reportable business segments: West Europe Retail; West Europe Wholesale; Russia Retail; Russia Wholesale; Romania Retail; Romania Wholesale; and Other. In the financial year ended 31 December 2013 (2013), the largest contributor to the bank s net interest income was the Russia Retail segment (57.0%). West Europe Retail: This segment includes the loans to and the deposits of the bank s retail customers in Western Europe, including Belgium, Malta, Germany and the Netherlands. As of 31 December 2013, it reported total consolidated assets of million, and accounted for 4.0% of the bank s net interest income in West Europe Wholesale: This segment includes loans to and deposits of the bank s non-retail customers in Belgium, Germany, Malta, the Netherlands and Switzerland. As of 31 December 2013, it reported total consolidated assets of 4.7 billion, and accounted for 13.9% of the bank s net interest income in In this segment, there is also 402 million in non-cash outstanding exposure as of 31 December 2013, stemming mainly from international trade and commodity activities of the bank. This publication does not announce a credit rating action. For research publications that reference Credit Ratings, please see the ratings tab on the issuer/entity page on for the most updated Credit Rating Action information and rating history. Russia Retail: This segment includes the loans to and the deposits of the bank s retail customers in Russia. As of 31 December 2013, it reported total consolidated assets of 2.4 billion, and accounted for 57.0% of the bank s net interest income in MAY 19, 2014 COMPANY PROFILE: CREDIT EUROPE BANK NV

3 Russia Wholesale: This segment includes the loans to and the deposits of the bank s non-retail customers in Russia. As of 31 December 2013, it reported total consolidated assets of million, and accounted for 11.0% of the bank s net interest income in Romania Retail: This segment includes the loans to and the deposits of the bank s retail customers in Romania. As of 31 December 2013, it reported total consolidated assets of million, and accounted for 5.1% of the bank s net interest income in Romania Wholesale: This segment includes the loans to and the deposits of the bank s non-retail customers in Romania. As of 31 December 2013, it reported total consolidated assets of million, and accounted for 4.7% of the bank s net interest income in Other: This segment includes the bank s operations in Dubai and Ukraine. As of 31 December 2013, it reported total consolidated assets of million, and accounted for 4.3% of the bank s net interest income in At the end of 2013, Dubai also had 35million in off balance sheet risk in its books. Source: Company Report (annual report Dec 2013) EXHIBIT 2 Business Segment (% of Net Interest Income, consolidated, for 2013) Romania Wholesale 5% Romania Retail 5% West Europe Retail 4% Other 4% Russia Wholesale 11% Russia Retail 57% West Europe Wholesale 14% Source: Company Report (annual report Dec 2013, Pg: 71) EXHIBIT 3 Net Profit/(Loss) per Business Segment (consolidated, in Million) (10) (20) (30) West Europe Retail West Europe Wholesale Source: Company Report (annual report Dec 2013, Pg: 71 and 72) (21) (13) (11) Russia Retail Russia Wholesale Romania Retail Romania Wholesale Other 3 MAY 19, 2014 COMPANY PROFILE: CREDIT EUROPE BANK NV

4 Distribution Capacity and Market Share As of 31 December 2013, Credit Europe Bank serviced over 4.2 million customers through a network of 184 branches, 21,870 sales points, 957 ATMs and over 22,600 point-of-sale terminals in 11 countries. The bank s main markets include Russia, Romania, Turkey, and developed European countries such as the Netherlands and Germany. As of 31 December 2013, Credit Europe Bank distributed its services in Russia through a network of 114 branches, 802 ATMs, 13,960 point-of-sale terminals and 14,200 sales points. As of that date, the bank provided its services in Romania through a network of 65 branches in 31 cities. The bank had a market share of 17% in terms of credit cards in Romania, with over 280,000 active credit cards as of 31 December In addition, Credit Europe Bank maintains representative offices in Istanbul and Shanghai, as well as a branch in Frankfurt where the retail banking activities of Credit Europe Bank N.V. is managed. The geographical distribution of Credit Europe Bank s gross loans to customers was as follows: EXHIBIT 4 Credit Europe Bank NV Gross Loans to Customers (%) Geographical Segment 31-Dec Dec-12 Russia Romania Turkey Ukraine Other Emerging Markets Developed Markets Total Source: Company Report (annual report Dec 2013), Moody s research Ownership and Structure As of 31 December 2013, Credit Europe Bank operated as a wholly owned subsidiary of Credit Europe Group NV, which was ultimately owned by Hüsnü M. Özyeğin through the investment company FIBA Holding AS. Source: Company Report (annual report Dec 2013) 4 MAY 19, 2014 COMPANY PROFILE: CREDIT EUROPE BANK NV

5 Subsidiaries As of 31 December 2013, the subsidiaries of Credit Europe Bank were as follows: EXHIBIT 5 Credit Europe Bank NV Company Country % Held Credit Europe Bank (Dubai) Ltd. United Arab Emirates Credit Europe Bank (Suisse) SA Switzerland Credit Europe Leasing (Ukraine) LLC Ukraine Stichting Credit Europe Custodian Services Netherlands PJSC Credit Europe Bank (Ukraine) Ukraine Credit Europe Leasing (Romania) Romania Credit Europe Bank (Romania) SA Romania Credit Europe Bank (Russia) Ltd. Russia Credit Europe Leasing (Russia) LLC Russia Cirus Holding BV Netherlands Ikano Finance Holding BV Netherlands Source: Company Report (annual report Dec 2013) Company Management Managing Board Current Title Age Enver Murat Başbay Credit Europe Bank: Chief Executive Officer 45 Şenol Aloğlu Credit Europe Bank: Deputy Chief Executive Officer 48 Umut Bayoğlu Credit Europe Bank: Chief Financial Officer 40 Scott Cheung Credit Europe Bank: Chief Risk Officer 38 Levent Karaca Credit Europe Bank: Board Member 43 As of Feb 2014 Supervisory Board Affiliation Age Committees Hector de Beaufort Credit Europe Bank: Chairman; Clifford Chance: Senior Corporate Partner Murat Özyeğin Frits Deiters Credit Europe Bank: Vice Chairman; Fiba Group: Head of Strategic Planning and Business Development; Fina Holding and Fiba Holding: Executive Board Member; Turkish Industry and Business Association: Member; Ozyegin University and World Wildlife Fund: Member of the Board of Trustees; Global Relations Forum and OECD s Business, Industry Advisory Council: Board Member; Harvard University: Member of Global Advisory Council Credit Europe Bank: Independent Board Member; Stichting Vrienden van het Singer Museum: Treasurer 57 Corporate Governance & Nomination Committee (C), HR & Remuneration Committee 37 Corporate Governance & Nomination Committee, HR & Remuneration Committee 73 Audit & Risk Committee (C), Compliance Oversight Committee 5 MAY 19, 2014 COMPANY PROFILE: CREDIT EUROPE BANK NV

6 Supervisory Board Affiliation Age Committees Mehmet Güleşci Korkmaz Ilkorur Credit Europe Bank: Board Member; Fiba Group: Chief Financial Officer Credit Europe Bank: Independent Board Member; Oliver Wyman: Member of the Senior Advisory Board; Robert College, Istanbul: (Emeritus) Trustee F. Onur Umut Credit Europe Bank: Board Member; Fiba Group: Board Member As of Feb 2014 (C) = Committee Chairman 51 Audit & Risk Committee, Corporate Governance & Nomination Committee 69 Audit & Risk Committee, Compliance Oversight Committee (C) 51 HR & Remuneration Committee (C), Compliance Oversight Committee Source: Company Report (annual report Dec 2013) Company History Credit Europe Bank traces its roots to 1994, when Finansbank (Holland) NV was established in the Netherlands. Until August 2006, Finansbank (Holland) NV was indirectly owned by Finansbank AS. That month, it was acquired by National Bank of Greece, which sold its international holdings, including Finansbank (Holland) NV to FIBA Holding AS. Consequently, Finansbank (Russia) Ltd., Finansbank Romania and Finansbank (Suisse) have become subsidiaries of Finansbank (Holland) NV. During , Finansbank (Holland) NV was renamed Credit Europe Bank. Subsequently, all subsidiaries have also been renamed Credit Europe Bank. During 2008, licences for 2 more subsidiary banks were obtained from local authorities and PJSC Credit Europe Bank Ukraine and Credit Europe Bank (Dubai) started their activities. In 2010, Credit Europe Bank acquired a 95% stake in the Turkey-based bank Millennium Bank AS from Banco Comercial Portugues. In 2011, Millennium Bank AS was renamed Fibabanka AS. In December 2012, the bank spun off Fibabanka AS to its parent company, FIBA Holding AS. Source: Company Reports (annual report Dec 2013, Dec 2011 and Dec 2010), Moody s research Peer Group» Demir-Halk Bank (Nederland) N.V.» GarantiBank International N.V. Subsidiaries Rated by Moody s» Credit Europe Bank Ltd. 6 MAY 19, 2014 COMPANY PROFILE: CREDIT EUROPE BANK NV

7 Related Websites and Information Sources For additional information, please see:» The company s website: The regulator s website: MOODY S has provided links or references to third party World Wide Websites or URLs ("Links or References") solely for your convenience in locating related information and services. The websites reached through these Links or References have not necessarily been reviewed by MOODY S, and are maintained by a third party over which MOODY S exercises no control. Accordingly, MOODY S expressly disclaims any responsibility or liability for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on any third party web site accessed via a Link or Reference. Moreover, a Link or Reference does not imply an endorsement of any third party, any website, or the products or services provided by any third party. Moody s Related Research Credit Opinion:» Credit Europe Bank NV Credit Focus:» Credit Europe Bank N.V.: Challenges Amid Fast-Changing Market Conditions, February 2014 (160675) Banking Statistics:» Credit Europe Bank NV, January 2013 (148860) Banking System Outlook:» Banking System Outlook: Netherlands, February 2014 (164988) Banking System Profile:» Banking System Profile: The Netherlands, February 2014 (164970) To access any of these reports, click on the entry above. Note that these references are current as of the date of publication of this report and that more recent reports may be available. All research may not be available to all clients. 7 MAY 19, 2014 COMPANY PROFILE: CREDIT EUROPE BANK NV

8 Report Number: Authors Arif Bekiroglu Na Luo Editor Karen Wong Production Specialist Shubhra Bhatnagar 2014 Moody s Corporation, Moody s Investors Service, Inc., Moody s Analytics, Inc. and/or their licensors and affiliates (collectively, MOODY S ). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ( MIS ) AND ITS AFFILIATES ARE MOODY S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY S ( MOODY S PUBLICATIONS ) MAY INCLUDE MOODY S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. 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