Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — 9M FY2017 Earnings Presentation
48 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, May 10, 2017
Slide 1: Mediobanca 9M results as at March 2017
Mediobanca 9M results as at 31 March 2017 CONTINUING GROWTH Milan, 10 May 2017
Slide 2: Agenda
Agenda 1. Group results 2. Divisional results Annexes 1. Quarterly segmental reporting tables
Slide 3: Net profit up 40%, ROTE at 10%
Net profit up 40%, ROTE at 10% 9M results as at March 2017 - MB Group Section 1 Highest-ever 9m revenues with growing NII and fees NII definitively increased and diversified by sources WM fees up to 40% of total, CIB as well Sharp reduction in cost of risk, significantly below BP19 target, coupled w
Slide 4: Last 3M: focus on fee, cost of risk, capital
Last 3M: focus on fee, cost of risk, capital In the third quarter Mediobanca has successfully achieved: Revenues up 7% to €584m Net interest income resilient at €320m, the highest-ever level Fees up 23% to €165m Positive momentum in AUM/AUA: additional €1.5bn to €23bn Cost of risk down by 35bps to 6
Slide 5: All metrics improving in All divisions
All metrics improving in All divisions 9M results as at March 2017 - MB Group Section 1 Revenues GOP Net profit ROAC1 +9% +23% ROTE 10% +39% Mediobanca 686 8% 1,519 1,657 614 Group 558 442 7% ROTE adj. Mar.16 Mar.17 Mar.16 Mar.17 Mar.16 Mar.17 Mar.16 Mar.17 +3% 13% +9% +16% 10% Corporate & Investmen
Slide 6: Top line growing – strong fees in 3Q
Top line growing – strong fees in 3Q 9M results as at March 2017 - MB Group Section 1 Group revenues (€m, 9m) Fees by quarter (€m, 3m) +23% +32% +9% 1,657 165 1,519 135 194 114 102 180 105 97 +19% 402 June16 Sept.16 Dec.16 March 17 336 Net interest income & trading by quarter (€m) +3% 362 337 346 35
Slide 7: Fees up in all divisions: WM at ~40% of total group fees
Fees up in all divisions: WM at ~40% of total group fees 9M results as at March 2017 - MB Group Section 1 Group fees YoY trend (€m) +19% 18 (13) 47 14 +10% +47% +17% 402 336 Mar.16 Consumer Wealth Mgt CIB Other Mar.17 Group fees up 19% YoY (to €402m), all divisions growing Wealth Management up from
Slide 8: NII definitively increased & diversified by sources
NII definitively increased & diversified by sources 9M results as at March 2017 - MB Group Section 1 Group NII by business Group NII 3M change Group NII 9M change (9M, €m) (€m, QoQ) (€m, YoY) Consumer Flat Group +49 613 CIB 222 Consumer €955m WM 8% from WM acquisitions 178 CIB and new HF businesses
Slide 9: Cost of risk down, coverage ratios up
Cost of risk down, coverage ratios up 9M results as at March 2017 - MB Group Section 1 Cost of risk by division (bps) NPLs1 (“deteriorate”, €m) and coverage1 (%) 56% 53% 54% 339 55% 259 1,400 1,200 50% 1,000 45% 800 40% 1,094 993 600 921 35% 207 125 400 30% Mar.15 Mar.16 Mar.17 92 Net NPLs NPLs cove
Slide 10: Strong asset quality further improved at all divisions
Strong asset quality further improved at all divisions coverage up, Npls/bad loans down in relative terms NPLs1 Bad Ls1 Coverage1 As % of loans1 (“deteriorate”) (“sofferenze”) -7% -13% 69% 71% 2.8% 2.5% Mediobanca 56% 993 921 54% Group 187 162 0.5% 0.4% Mar.16 Mar.17 Mar.16 Mar.17 Mar.16 Mar.17 Mar.
Slide 11: GOP up 23%, driven by revenue growth and LLPs reduction
GOP up 23%, driven by revenue growth and LLPs reduction 9M results as at March 2017 - MB Group Section 1 MB Group 9M17 operating profit1 by source (€m) +23% 71 80 15 65 8 49 686 558 GOP Net interest Treasury Fee Equity accounted Loan loss Total GOP 9M FY16 income income income co. income provisions
Slide 12: Expanding profitable loan book, RWA optimization ongoing
Expanding profitable loan book, RWA optimization ongoing 9M results as at March 2017 - MB Group Section 1 Loan YoY trend (€bn) RWA YoY trend (€bn) Long-term trends (rebased to 100) +6% 37.2 60.0 -13% 34.9 2.3 4.0 52.2 2.6 4.2 Basel2 Basel3 8.7 4.3 5.9 10.4 5.5 11.4 107 10.8 11.5 11.5 100 7.6 86 29.9
Slide 13: 80bps of K generated in last Q – CET1 up to 13.1%
80bps of K generated in last Q – CET1 up to 13.1% 9M results as at March 2017 - MB Group Section 1 CET1¹ trend by sources CET1 trend Capital ratios trend (% and bps, phase-in) (% and bps, phase-in) (phase-in,%) +100bps in 9M +80bps in last Q €1.1bn AG stake Basel2 Basel3 deduction TC 16.8 +20bps 13.
Slide 14: Agenda
Agenda 1. Group results 2. Divisional results 2A. Corporate & Investment Banking 2B. Consumer Banking 3C. Wealth Management 3D. Principal Investing 3E. Holding Functions
Slide 15: Mediobanca business model
Mediobanca business model Mediobanca Group Holding Functions Group ALM & Treasury Corporate & Investment Consumer Banking Wealth Management Principal Investing Banking (CIB) (CB) (WM) (PI) Corporate & Investment Consumer Banking Affluent & Premier Principal Investing Banking Compass CheBanca! Ass. G
Slide 16: Corporate & Investment Banking
Corporate & Investment Corporate & Banking (CIB) Investment Banking Corporate & Investment Banking Specialty Finance 16
Slide 17: CIB: more diversified and capital light, ROAC up to 13%
CIB: more diversified and capital light ROAC up to 13% Wholesale Banking (WB) Specialty Finance (SF) Corporate & Investment Banking (CIB) Fee-driven business Becoming visible RWA optimization ongoing Diversified revenue mix Net profit up 16% to €218m Strong fee contributor, Revenue growing (up 54%),
Slide 18: Fees up 10%: CapMkts strong, Specialty finance visible
Fees up 10%: CapMkts strong, Specialty finance visible 9M results as at March 2017 – Divisional results Section 2 CIB fees YoY trend (€m, 9M) Advisory March 16 19% March 17 Advisory Lending 25% 19% Lending 24% €181m +10% €199m Specialty YoY Specialty Finance Finance Capmkt 8% 16% 46% Capmkt 43% Fees
Slide 19: Specialty finance: a complementary NII-fee business
Specialty finance: a complementary NII-fee business 9M results as at March 2017 – Divisional results Section 2 Factoring - MBFacta Credit Management - MBCredit Solutions¹ Gaining momentum Building up expertise/obtaining scale Factoring revenue mix/trend (€m) Credit management revenue mix/trend (€m)
Slide 20: Consumer Banking
Consumer Banking Consumer Banking (CB) Consumer Banking Compass 20
Slide 21: Consumer: net profit doubled to ~€200m, ROAC 25%
Consumer: net profit doubled to ~€200m, ROAC 25% 9M results as at March 2017 – Divisional results Section 2 Long-term, sustainable, impressive growth Focus on margins risk adjusted Compass revenues ~ 45% of MB Group total income Cost of risk steadily down Since 2010 Consumer has been always growing
Slide 22: New loans approach delivering sustainable growth
New loans approach delivering sustainable growth 9M results as at March 2017 – Divisional results Section 2 120 368 358 360 400 In the last 2Y in Consumer has 342 110 318 313 307 350 achieved significant goals: LLPs and CoR reduction 100 267 300 loan book has grown steadily… 90 207 250 80 …while LLP
Slide 23: Wealth Management
Wealth Management Wealth Management (WM) Affluent & Premier CheBanca! Private & HNWI Banca Esperia Spafid CMB Mediobanca AM 23
Slide 24: Work in progress to lay foundations for further growth
work in progress to lay foundations for further growth 9M results as at March 2017 – Divisional results Section 2 CheBanca! Banca Esperia Barclays integration 50% acquisition and integration Branches: network assessment and rebranding Deal closed in early April, full consolidation from 4Q, completed
Slide 25: Strong assets growth due to external & internal growth
Strong assets growth due to external & internal growth 9M results as at March 2017 – Divisional results Section 2 Group AUM/AUA trend by costumer segments (€bn) +35% +25% 22.8 +18% +87% Cairn 2.5 AAM 0.5 16.9 2.0 Esperia 6.7 AAM Cairn 2 3.3 Private Esperia 5.9 CMB 6.4 Private CMB 5.2 CheBanca! CheBa
Slide 26: Wealth management: ROAC 10%
Wealth management: ROAC 10% 9M results as at March 2017 – Divisional results Section 2 Affluent & Premier Private CheBanca! HNWI (Affluent & Premier) Wealth Management (WM) Barclays integration started Sound AUM growth Revenues and GOP up 35% and 40% CheBanca! definitively scaled up Revenue up 26% d
Slide 27: Principal Investing
Principal Investing (PI) Principal Investing Principal Investing Ass. Generali AFS stake ptf 27
Slide 28: Principal Investing: ROAC 15%, disposals continuing
Principal Investing: ROAC 15%, disposals continuing 9M results as at March 2017 – Divisional results Section 2 KPIs (€m) Main equity investments (€m) Book value AFS PI - €m Mar16 Mar17 D Company % €m reserve Revenues 195 196 +1% Ass.Generali 13.0% 3,188 n.m.² Gain from disposals/ Atlantia 1.4% 271 1
Slide 29: Holding Functions
Holding Functions Holding Functions Group ALM & Treasury Leasing 29
Slide 30: Holding Function: optimization ongoing, NII recovering
Holding Function: optimization ongoing NII recovering 9M results as at March 2017 – Divisional results Section 2 Holding Functions Treasury, ALM, central functions Leasing (HF) Optimization Ordinate deleverage Net loss up to €179m: Revenues down due to Selective new business matched Lower NII due hi
Slide 31: NII starting to recover
NII starting to recover 9M results as at March 2017 – Divisional results Section 2 Group funding (€m) NII trend by quarter (€m) 49.7 49.2 6.1 6.3 6.5 -6 6.0 3.6 3.5 -16 -19 -18 13.8 13.7 -28 19.7 19.7 Dec.16 Mar.17 Mar.16 June16 Sept.16 Dec.16 Mar.17 MB bond Retail deposit Private banking dep. ECB O
Slide 32: Closing remarks
CLOSING REMARKS 9M results as at March 2017 – Divisional results Section 2 Highest-ever 9m revenues with growing NII (up 5%) and fees (up 19%), NII and fee income definitively increased and diversified by sources Last 9m Sharp reduction in cost of risk, coupled with increased coverage ratios Growth
Slide 33: Mediobanca 9M results as at March 2017
Mediobanca 9M results as at 31 March 2017 CONTINUING GROWTH Milan, 10 May 2017
Slide 34: Quarterly segmental reporting tables
Quarterly segmental reporting tables Annex 1 34
Slide 35: TFA up 25% to €52bn
TFA up 25% to €52bn 9M results as at March 2017 Annex1 Group TFA trend by product (€bn) +25% +35% 51.7 100% +3% +31% 100% 41.3 0.3 5.9 AUM/AUA 22.8 44% 4.2 41% AUM/AUA 16.9 AUC 11.3 22% 27% AUC 11.0 Deposits 34% Deposits 32% 17.6 13.4 Mar.16 Deposits AUC AUM/AUA Mar.17 inflow inflow inflow TFA up €1
Slide 36: Group P&L account
Group P&L account 9M results as at March 2017 Annex1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 1,657 1,519 +9% 584 546 526 528 503 Net interest income 955 906 +5% 320 321 314 301 301 Fee income 402 336 +19% 165 135 102 114 109 Net treasury income 105 97 +8% 42 32 32 36 52 Equ
Slide 37: Group A&L
Group A&L 9M results as at March 2017 Annex 1 D D €bn Mar17 Dec16 June16 Mar16 QoQ1 YoY1 Funding 49.2 49.7 46.7 46.1 -1% +7% Bonds 19.6 19.7 20.3 20.2 -0% -3% Retail direct deposits 13.7 13.8 10.7 10.4 -1% +32% Private banking deposits 3.5 3.6 3.0 2.5 -1% +39% ECB 6.0 6.5 5.0 5.5 -8% +10% Others 6.3
Slide 38: CIB results
CIB results 9M results as at March 2017 Annex 1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 507 493 +3% 193 169 146 132 187 Net interest income 222 228 -3% 69 78 76 73 72 Fee income 199 181 +10% 92 63 44 47 56 Net treasury income 86 83 +3% 32 28 26 13 59 Total costs (177) (171)
Slide 39: WB results
WB results 9M results as at March 2017 Annex 1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 443 451 -2% 170 143 129 117 172 Net interest income 189 201 -6% 57 67 65 63 62 Fee income 167 167 +0% 81 49 38 41 51 Net treasury income 86 83 +3% 32 28 26 13 59 Total costs (153) (152) +
Slide 40: Specialty Finance results
Specialty Finance results 9M results as at March 2017 Annex 1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 65 42 +54% 23 25 17 15 15 Net interest income 33 27 +20% 12 11 11 9 10 Fee income 32 14 +119% 11 14 6 6 5 Total costs (25) (19) +33% (10) (8) (8) (10) (7) Loan loss provisi
Slide 41: Consumer banking: Compass results
Consumer banking: Compass results 9M results as at March 2017 Annex 1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 715 638 +12% 239 240 236 235 215 Net interest income 613 551 +11% 205 206 203 196 188 Fee income 101 87 +17% 34 35 33 39 27 Total costs (207) (195) +6% (70) (73) (6
Slide 42: Wealth Management results
Wealth Management results 9M results as at March 2017 Annex 1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 332 247 +34% 117 123 91 88 84 Net interest income 178 140 +27% 61 67 50 46 46 Fee income 144 97 +47% 53 53 37 37 34 Net treasury income 10 9 3 3 4 4 3 Total costs (265) (19
Slide 43: CheBanca! Results (Affluent & Premiere)
CheBanca! Results (Affluent & Premiere) 9M results as at March 2017 Annex 1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 201 144 +40% 69 78 54 49 47 Net interest income 151 113 +33% 51 59 41 36 37 Fee income 50 31 +64% 19 19 13 13 10 Total costs (172) (121) +42% (61) (66) (45) (
Slide 44: Private Banking results
Private Banking results 9M results as at March 2017 Annex1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 130 103 +26% 48 46 37 39 36 Net interest income 28 28 +1% 10 9 9 10 9 Fee income 93 67 +40% 35 34 25 25 24 Net treasury income 9 9 +6% 3 3 4 4 3 Total costs (93) (77) +21% (33
Slide 45: Principal Investing results
Principal Investing results 9M results as at March 2017 Annex 1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income 196 195 +1% 58 60 78 90 41 Gains from disposals 139 97 +43% 20 9 110 23 5 Impairments (1) (17) -95% 0 (1) (0) (1) (5) Net result 320 269 +19% 78 64 178 105 39 Book value
Slide 46: Holding Functions results
Holding Functions results 9M results as at March 2017 Annex 1 9m 9m D €m 1Q17 4Q16 3Q16 2Q16 1Q16 Mar17 Mar16 YoY1 Total income (46) (8) +458% (8) (27) (12) 2 (13) Net interest income (65) (18) +271% (18) (28) (19) (16) (6) Fee income 13 14 -8% 4 4 5 9 3 Total costs (114) (115) -1% (44) (38) (33) (4
Slide 47: Disclaimer
Disclaimer This presentation contains certain forward-looking statements, estimates and targets with respect to the operating results, financial condition and business of the Mediobanca Banking Group. Such statements and information, although based upon Mediobanca’s best knowledge at present, are ce
Slide 48: 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 Email: investor.relations@mediobanca.com http://www.mediobanca.com 48