Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — H1 FY2023 Earnings Presentation
50 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Feb 9, 2023
Slide 1: Mediobanca 6M/2Q Results as at 31 December 2022
MEDIOBANCA 6M/2Q RESULTS AS AT 31 DECEMBER 2022 Milan, 9 February 2023
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 1H/2Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional results by quarter 3. Glossary
Slide 3: Quality record results, well on track on BP23 targets
QUALITY RECORD RESULTS, WELL ON TRACK ON BP23 TARGETS 3M RESULTS: RECORD GROWTH DESPITE PRUDENCE, DRIVEN BY STRONG INDUSTRIAL TRENDS 3M revenues to highest-ever levels: ~€900m (up 20% YoY) 3M net profit to ~€300m (up 11% YoY) NII ~€450m (up 19% YoY, up 13% QoQ) due to asset growth (loans up 2% QoQ t
Slide 4: 2Q/3M snapshot: growth delivered in all business
2Q/3M SNAPSHOT: GROWTH DELIVERED IN ALL BUSINESS Executive summary Section 1 Group: record quarter Mediobanca Group – 2Q results as at Dec22 Revenues, GOP and net profit (~€300m) at best-ever level, Revenues Fees CoR Net profit with strong NII (€447m) backed by funding comfortable position and fees
Slide 5: 1H23/6M KPIs: over-delivering on BP23 targets
1H23/6M KPIS: OVER-DELIVERING ON BP23 TARGETS Executive Summary Section 1 MEDIOBANCA GROUP – 6M as at Dec22 EPS up 7% to €0.65, ~60% of BP FY23 target (€1.1) ROTE up 4pp to 14%, vs. avg. 8% ITA - 10% EU banks2 EPS 6m TBVPS ROTE adj RORWA PER RoRWA at 2.2%, vs. avg. 1.5% ITA - 1.6% EU banks2 SHARE €0
Slide 6: Agenda
Agenda Section 1. Executive summary Section 2. 1H/2Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional results by quarter 3. Glossary
Slide 7: Best-ever 3M revenues (>€900m)
BEST-EVER 3M REVENUES (>€900M) STRONG GROWTH IN ALL SOURCES, NOT ONLY NII 1H/2Q - Group results Section 2 Group revenue trend by source (YoY, 3M, €m) Group revenue breakdown by source (3M, %) +20% 902 2Q21 2Q23 +12% Trading 753 109 Trading income 675 +21% income 9% 90 7% 67 +35% 262 +9% 241 194 +24%
Slide 8: Leading to >€1.6bn 6M revenues
LEADING TO >€1.6BN 6M REVENUES WITH ALL DIVISIONS GROWING 1H/2Q - Group results Section 2 Group revenues by division (YoY, 6M, €m) WM revenues up 5% QoQ +14% YoY 192 179 183 199 209 46 156 162 163 172 4 72 35 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 43 +2%1 +20%1 €3bn +7%1 BPFY23 CF revenues up
Slide 9: NII: strong momentum (up 15% YoY)
NII: STRONG MOMENTUM (UP 15% YoY)… 1H/2Q - Group results Section 2 NII momentum improving (€m, 3M) Loans: up 6% YoY and up 4% HoH (€bn) +15% YoY +13% HoH €843m €746m €734m 447 +13% +6% 396 358 375 373 373 42 Dec22 16.4 14.1 21.3 53.6 67 68 +2% 60 65 66 62 88 Sept22 15.8 13.9 20.8 52.4 73 72 76 84 74
Slide 10: On ongoing sound commercial activity
…ON ONGOING SOUND COMMERCIAL ACTIVITY … DESPITE REPRICING AND PRUDENT ORIGINATION 1H/2Q - Group results Section 2 CIB Consumer Finance Wholesale new loans1 & loan book - €bn Consumer Finance: new loans & loan book - €bn 3 13.9 14.1 +6% YoY 15 18.3 +5% YoY 13.8 05 18.1 18 18.2 19 13.5 +3% HoH 17.4 +1
Slide 11: Comfortable funding position/cost
…AND COMFORTABLE FUNDING POSITION/COST €10BN RAISED SINCE FEB-22 AT ~80BPS VS EUR3M AVG COST 1H/2Q - Group results Section 2 Funding trend Bonds expired and issued, CoF Funding stock up to €62bn, with over (€bn) (€bn, cost in bps vs Eur3M) €10bn raised since Feb22 at ~80bps vs EUR3M 61.2 62.0 Abunda
Slide 12: Fees: best-ever quarterly result, >€260m in 2Q
FEES: BEST-EVER QUARTERLY RESULT… >€260M IN 2Q 1H/2Q - Group results Section 2 Fee income trend by division (€m, 3M) CIB fees (€m, 3M) 117 93 8 +7% YoY +16% HoH 24 76 7 69 68 69 €472m 7 11 24 Specialty fin €443m 17 15 7 7 7 Lending 262 14 19 25 €407m 13 CapMkt 1 241 20 9 59 61 Advisory 210 39 28 33
Slide 13: Leveraging on sound CIB and WM activity
…LEVERAGING ON SOUND CIB AND WM ACTIVITY 1H/2Q - Group results Section 3 WM commercial activity Commercial activity concentrated on AUM/AUA to NNM and TFA trend (€bn) manage market volatility and new rate environment, +5% YoY with deposits stable and limited pressure on cost 79.4 80.3 80.2 80.9 83.2
Slide 14: CoR @ 59bps, almost flat YoY
COR @ 59BPS, ALMOST FLAT YOY DESPITE CIB NORMALIZATION AND MACRO MODEL UPDATE – HEALTHY CF CoR trend (bps) 1H22 2H22 1H23 Group 55bps Group 41bps Group 59bps CF 146bps CF 139bps CF 144bps Overlay stock trend (€m) CIB -25bps CIB -16bps CIB 34bps 160 141 138 146 133 ~300 142 CF ~280 ~60 ~45 51 60 71 G
Slide 15: Prudent staging
PRUDENT STAGING NPLs DOWN AND COVERAGE RATIOS UP 1H/2Q - Group results Section 2 Gross NPLs – Stage 31 Net NPLs – Stage 31 ➢ Stage 3 – Gross NPLs down 2% vs June 22 (Net exposure/Loans) level, at the lowest ever level (2.4% of 73.2% gross loans), with limited new 71.0% 8.0% 64.9% classifications in
Slide 16: Excellent asset quality confirmed at all divisions
EXCELLENT ASSET QUALITY CONFIRMED AT ALL DIVISIONS 1H/2Q - Group results Section 2 Net NPLs (€m) of which bad loans (€m) NPL coverage NPLs as % of loans (“deteriorate”) (“sofferenze”) 73% 2.8% 2.5% 2.4% 71% -9% 67% Gross Mediobanca -15% 1.0% 0.7% 0.7% 487 384 350 Group 63 53 46 Net Dec21 June22 Dec2
Slide 17: Sound capital position confirmed, large buffers vs SREP
SOUND CAPITAL POSITION CONFIRMED, LARGE BUFFERS VS SREP CET1 PHASE-IN @15.1% - FULLY LOADED @ 14.0% 1H/2Q - Group results Section 2 CET1 phased-in ratio1 trend (HoH) +110bps (80bps) (35bps) (30bps) (45bps) +20bps 15.1% 15.7% 7.95%2 CET1 SREP req. for 2023 14.5% FL 14.0% FL CET1 Earnings 70% Dividend
Slide 18: 1H23 results summary
1H23 RESULTS SUMMARY 1H/2Q - Group results Section 2 Financial results Highlights 6m D D 2Q23 1Q23 2Q22 Record revenues (up 14% YoY and 19% HoH) driven by all sources: €m Dec22 HoH1 YoY1 Dec22 Sept22 Dec21 Double-digit growth in NII (up 15% YoY and 13% HoH) due to Total income 1,659 +19% +14% 902 75
Slide 19: Strong improvement in rating and awards
STRONG IMPROVEMENT IN RATING AND AWARDS 1H/2Q - Group results Section 2 Indexes and ratings Stable products development and Stable improvement recognized by the market carbon neutrality Stable improvement in market indexes and ratings: €500m Sustainable Senior Preferred Bond placement (2nd Green bon
Slide 20: Agenda
Agenda Section 1. Executive summary Section 2. 1H/2Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional results by quarter 3. Glossary
Slide 21: Group ROTE 14%
GROUP ROTE 14% ALL DIVISIONS GROWING & WITH HIGH DOUBLE-DIGIT ROAC Revenues (€m, 6M) GOP risk adj. (€m, 6M) Net profit (€m, 6M) ROAC ROTE adj. +19% +34% 13.8% 10.8% +46% 9.7% Mediobanca 1,659 811 12.7% 1,459 1,391 689 607 10.5% ROTE Group 526 381 555 8.0% Dec21 June22 Dec22 Dec21 June22 Dec22 Dec21
Slide 22: WM: double-digit growth confirmed
WM: DOUBLE-DIGIT GROWTH CONFIRMED 6M REVENUES ~€410m (UP 12%) – 6M NET PROFIT ~€82m (UP 14%) 1H/2Q - Divisional results - WM Section 3 Financial results Highlights 6m D D 2Q23 1Q23 2Q22 Sound results by MBWM in last 6m despite tough markets: €m Dec22 HoH1 YoY1 Dec22 Sept22 Dec21 NNM: €3.4bn in 1H23,
Slide 23: In a reshaped market, ready to invest again
IN A RESHAPED MARKET, READY TO INVEST AGAIN… 1H/2Q - Divisional results - WM Section 3 Assoreti NNM (AUM&AUA) by quarter (€bn) NNM 9.2bn 12.2bn 8.4bn 11.5bn 6.8bn 17.2bn % stock +1.5% +1.9% +1.3% +1.8% +1.1% +2.9% Market - +2.0% -4.8% -7.4% -2.5% NA performance 13.1 12.4 9.5 €5.5bn 7.6 deposit 5.8 o
Slide 24: MB continued to outperform the market
…MB CONTINUED TO OUTPERFORM THE MARKET NNM @16% AUM/AUA, 50% REPRESENTED BY AUM 1H/2Q - Divisional results - WM Section 3 Group TFAs trend (€bn) MBWM: NNM of AUM/AUA by quarter (€bn, % stock) 4.0% 3.8% 3.2% 2.8% 2.5% 2.1 1.9 83.2 1.1% 1.7 1.5 80.2 (0.4) 1.3 3.4 0.5 NNM breakdown 1Q22 2Q22 3Q22 4Q22
Slide 25: MBWM trends and initiatives
MBWM TRENDS AND INITIATIVES 1H/2Q - Divisional results - WM Section 3 Private Banking Premier Banking 6M NNM from AUM/AUA at €1.7bn, accelerating in 2Q (€0.7bn in 6M NNM from AUM/AUA at €1.7bn, accelerating in 2Q (€0.7 in 1Q, €1bn in 2Q) 1Q, €1.1bn in 2Q) similar to Private Banking >€400m 6M NNM gen
Slide 26: Consumer Finance: growth despite prudence and macro
CONSUMER FINANCE: GROWTH DESPITE PRUDENCE AND MACRO 6M REVENUES €560m (up 7%) – 6M NET PROFIT ~€200m (up 3%) 1H/2Q - Divisional results - CF Section 3 Financial results Highlights 6m D D 2Q23 1Q23 2Q22 Growth results achieved despite more rigid acceptance ratio in €m Dec22 HoH1 YoY1 Dec22 Sept22 Dec
Slide 27: BNPL growing steadily while opportunities materialize
BNPL GROWING STEADILY WHILE OPPORTUNITIES MATERIALIZE COMBINING COMPASS’S RISK MANAGEMENT STRENGTHS WITH FINTECH BOOST 1H/2Q - Divisional results - CF Section 3 Pagolight progressively growing, alongside … … the new partnership with HeidiPay and Soisy (SP loans new business and Pagolight increasing
Slide 28: Strong asset quality further enhanced
STRONG ASSET QUALITY FURTHER ENHANCED 1H/2Q - Divisional results - CF Section 3 Ongoing healthy trend in early risk indicators … … keeping CoR at a very low level … Early deterioration index (3 months average) LLPs (€m) and cost of risk (bps) 361 380 80.0 150 330 70.0 248 60.0 223 280 196 50.0 174 1
Slide 29: CIB: record performance
CIB: RECORD PERFORMANCE IN ALL BUSINESS SEGMENTS WITH FEES AT 185M 1H/2Q - Divisional results - CIB Section 3 Financial results2 Highlights 6m D D 2Q23 1Q23 2Q22 Strong start to FY23 in CIB, with record revenues in 1H23 €m Dec22 HoH1 YoY1 Dec22 Sept22 Dec21 (€430m, up 20% YoY and 53% HoH), despite m
Slide 30: Leading investment bank in Italy with a unique track record in M&A
LEADING INVESTMENT BANK IN ITALY WITH A UNIQUE TRACK RECORD IN M&A... 1H/2Q Divisional results - CIB Section 3 Selected M&A Large Corp Transactions Pending Pending November 2022 September 2022 August 2022 MB announced over 20 transactions for a total volume of ~CHF 6bn $400m ~€50bn EV €127m €1.3bn t
Slide 31: As well as in capital markets and lending
…AS WELL AS IN CAPITAL MARKETS AND LENDING 1H/2Q Divisional results - CIB Section 3 Current macro environment, characterized by inflationary Selected ECM Transactions pressure, conservative monetary policies and geopolitical December 2022 December 2022 November 2022 tensions, significantly impacted
Slide 32: Insurance: positive and steady contribution
INSURANCE: POSITIVE AND STEADY CONTRIBUTION 1H/2Q - Divisional results – Insurance Section 3 Financial results Highlights 6m D D 2Q23 1Q23 2Q22 1H23 net profit at €183m, down 1% YoY due to seed K/PE €m Dec22 HoH1 YoY1 Dec22 Sept22 Dec21 funds being marked to market (minus €12m) and lower Total incom
Slide 33: Holding functions – improved results
HOLDING FUNCTIONS – IMPROVED RESULTS 1H/2Q - Divisional results – HF Section 3 Financial results3 Highlights 1H23 loss at €45m, halved HoH and 38% lower YoY, on 6m D D 2Q23 1Q23 2Q22 €m Dec22 HoH1 YoY1 Dec22 Sept22 Dec21 higher contribution from Treasury, notably in the NII component which benefited
Slide 34: Diversified funding
DIVERSIFIED FUNDING 1H/2Q - Divisional results – HF Section 3 Significant bonds issuance since Jan22, versus both institutional and WM (mainly third parties) clients Issue date Bond type Tenor Amount (€m) Spread at issue Subscription rate Jan-22 Senior Preferred 7.5NC6.5 500 MS+90bps 1.8x Apr-22 ABS
Slide 35: Agenda
Agenda Section 1. Executive summary Section 2. 1H/2Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional results by quarter 3. Glossary
Slide 36: Why Mediobanca has been over-delivering
WHY MEDIOBANCA HAS BEEN OVER-DELIVERING Closing remarks Section 4 WEALTH MANAGEMENT NNM growth capability above average in terms of quantity (annualized 16% on AUM stock vs 12% avg.) and quality (50% of growth in AUM) Deposits flat despite conversion Deposit beta actively managed low Interest rate s
Slide 37: Closing remarks
CLOSING REMARKS Closing remarks Section 4 MB business model has proved to be effective in different macro/interest rate scenarios 3Y CAGR 19/22 Var % 6m Dec22/Dec21 Revenues 4% 14% ow NII 2% 15% ow Fees 12% 7% GOP risk adjusted 4% 18% EPS 4% 7% CET1 +160bps to 15.7% 15.1% €1.4bn cumulated Shareholde
Slide 38: Mediobanca 6M/2Q Results as at December 2022
MEDIOBANCA 6M/2Q RESULTS AS AT 31 DECEMBER 2022 Milan, 9 February 2023
Slide 39: Agenda
Agenda Section 1. Executive summary Section 2. 1H/2Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Macro scenario 2. Divisional results by quarter 3. Glossary
Slide 40: Macro scenario trends
MACRO SCENARIO TRENDS Scenario macro Annex 1 Macro scenario trend (MB internal baseline scenario) 1 ECB Deposit Facility expected rate (%) 4 Scenario June22 Scenario Dec22 3.25 2022 2023 2024 2022 2023 2024 2025 3 3 IT GDP (y/y) 2.7% 2.1% 1.1% 3.9% (0.1%) 1.2% 0.4% 2.75 EA GDP (y/y) 2.7% 2.6% 1.9% 3
Slide 41: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 6M results as at December 2022 Annex 2 1H 2H 1H 2Q 1Q 4Q 3Q 2Q €m D YoY1 Dec22 June22 Dec21 Dec22 Sept22 June22 Mar22 Dec21 Total income 1,659 1,391 1,459 14% 902 757 704 688 753 Net interest income 843 746 734 15% 447 396 373 373 375 Fee income 472 407 443 7% 262 210 205 202 24
Slide 42: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 6M results as at December 2022 Annex 2 D D D €bn Dec22 Sept22 June22 Dec21 QoQ1 HoH1 YoY1 Funding 62.0 60.3 61.2 59.3 +3% +1% +4% Bonds 20.6 18.6 18.5 18.9 +10% +11% +9% Direct deposits (retail&PB) 28.8 28.7 28.8 27.2 +0% +0% +6% ECB 8.0 8.4 8.4 8.4 -5% -5% -6% Others 4.5 4.5 5.
Slide 43: Wealth Management results
WEALTH MANAGEMENT RESULTS 6M results as at December 2022 Annex 2 1H 2H 1H 2Q 1Q 4Q 3Q 2Q €m D YoY1 Dec22 June22 Dec21 Dec22 Sept22 June22 Mar22 Dec21 Total income 407 363 364 +12% 209 199 183 179 192 Net interest income 172 148 147 +17% 88 84 76 72 73 Fee income 230 208 213 +8% 118 112 105 104 117 N
Slide 44: Consumer Finance results
CONSUMER FINANCE RESULTS 6M results as at December 2022 Annex 2 1H 2H 1H 2Q 1Q 4Q 3Q 2Q €m D YoY1 Dec22 June22 Dec21 Dec22 Sept22 June22 Mar22 Dec21 Total income 560 533 525 +7% 284 276 269 265 268 Net interest income 492 472 462 +7% 249 243 236 237 236 Fee income 68 61 63 +8% 35 33 33 28 32 Total c
Slide 45: CIB results
CIB RESULTS 6M results as at December 2022 Annex 2 1H 2H 1H 2Q 1Q 4Q 3Q 2Q €m D YoY1 Dec22 June22 Dec21 Dec22 Sept22 June22 Mar22 Dec21 Total income 430 282 358 +20% 248 182 142 139 189 Net interest income 135 128 125 +8% 68 67 62 66 65 Net treasury income 110 17 63 +73% 63 47 12 5 32 Fee income 185
Slide 46: Insurance results
INSURANCE RESULTS 6M results as at December 2022 Annex 2 1H 2H 1H 2Q 1Q 4Q 3Q 2Q €m D YoY1 Dec22 June22 Dec21 Dec22 Sept22 June22 Mar22 Dec21 Total income 198 178 194 2% 111 87 101 77 96 Impairments (12) (33) 0 (1) (11) (27) (6) (3) Net result 183 135 185 -1% 105 78 69 66 88 Book value (€bn) 3.0 3.9
Slide 47: Holding function results
HOLDING FUNCTION RESULTS 6M results as at December 2022 Annex 2 1H 2H 1H 2Q 1Q 4Q 3Q 2Q €m D YoY1 Dec22 June22 Dec21 Dec22 Sept22 June22 Mar22 Dec21 Total income 82 48 31 n.m. 62 19 14 33 14 Net interest income 32 (12) (10) n.m. 35 (3) (5) (7) (4) Net treasury income 26 32 16 +68% 14 12 7 25 6 Fee i
Slide 48: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking DPS Dividend per share WB Wholesale banking EPS Earning per share EPS adj. Earning per share adjusted1 SF Specialty finance ESG Environmental, Social, Governance CB Consumer banking FAs Fi
Slide 49: Disclaimer & declaration of head of financial reporting
DISCLAIMER & DECLARATION OF HEAD OF FINANCIAL REPORTING Disclaimer This document includes certain projections, estimates, forecasts and consequent targets which reflect the current views of Mediobanca – Banca di Credito Finanziario S.p.A. (the “Company”) with regard to future events (“forward-lookin
Slide 50: Investor contacts
INVESTOR CONTACTS Mediobanca Group Investor Relations Piazzetta Cuccia 1, 20121 Milan, Italy Jessica Spina Tel. no. (0039) 02-8829.860 Luisa Demaria Tel. no. (0039) 02-8829.647 Matteo Carotta Tel. no. (0039) 02-8829.290 Marcella Malpangotto Tel. no. (0039) 02-8829.428 Email: investor.relations@medio