Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS
Banca Monte Dei Paschi Di Siena — H1 2022 Earnings Presentation
26 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, Aug 5, 2022
Slide 1: A Clear and Simple Commercial Bank - 1H 22 Financial Results
A Clear and Simple Commercial Bank 1H 22 Financial Results Siena, 5th August 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Banca Monte dei Paschi di Siena S.p.A. (the “Company”) or any person on behalf of the Company, and any question-and-answer session
Slide 3: Executive Summary
Executive Summary ▪ Net profit 1H22 at EUR 27mln, Q2 at EUR 18mln, y/y comparison impacted by 1H21 higher gains on securities and lower provisions for risks ▪ 1H22 gross operating profit up by +12.6% y/y, thanks to NII up by +12.8% y/y, excluding capital gains on securities in both periods ▪ Operati
Slide 4: Follow up on key steps in the execution of the Business Plan
Follow up on key steps in the execution of the Business Plan ▪ On 2 August 2022, DG Comp approved the extension of the restructuring period and revised commitments related to the Bank. The commitments are consistent with the MPS Business Plan ▪ On 4 August 2022, an agreement with Trade Unions Organi
Slide 5: Net profit
Net profit Quarterly evolution Yearly evolution €/mln €/mln -86.5% Main deltas 202 -80 capital gains -62 LLPs 18 27 27 -51 10 taxes 1Q22 2Q22 1H22 1H21 1H22 • 1H22 net profit at EUR 27mln, with 2Q22 contribution of EUR 18mln • Y/y dynamics impacted by higher gains on securities, lower provisions and
Slide 6: Gross operating profit
Gross operating profit quarterly evolution Operating income Gross operating profit €/mln -0.2% €/mln -5.6% 783 -0.9% 741 739 1 49 -16.9% 740 734 +0.6% 248 208 49 206 2Q21 1Q22 2Q22 1 Operating costs €/mln +3.4% 0.0% 207 199 -0.4% 533 535 533 2Q21 1Q22 2Q22 2Q21 1Q22 2Q22 Capital gains from securitie
Slide 7: Gross operating profit
Gross operating profit yearly evolution Operating income Gross operating profit €/mln €/mln -2.5% -7.1% 1,561 1,522 128 49 1,473 488 1,433 +2.8% 454 128 49 1H21 1H22 Operating costs +12.6% €/mln 360 405 -0.4% 1,073 1,068 1H21 1H22 Capital gains from securities disposal 1H21 1H22 • 1H22 gross operati
Slide 8: Net interest income
Net interest income Quarterly evolution Yearly evolution €/mln €/mln +10.2% +12.8% +4.3% 660 585 337 97 306 323 76 51 46 43 509 563 263 272 291 2Q21 1Q22 2Q22 1H21 1H22 Lending rate 1.82% 1.77% 1.80% 1.83% 1.79% Funding rate 0.14% 0.12% 0.11% 0.18% 0.11% Spread 1.67% 1.66% 1.69% 1.65% 1.67% • 2Q22 N
Slide 9: Net customer loans
Net customer loans Net loans Performing loans retail €/bn €/bn +0.8% +1.0% +0.6% -0.1% 31.1 31.2 31.4 72.4 73.3 73.2 Jun 21 Mar 22 Jun 22 Performing loans corporate €/bn +1.1% -0.6% 41.4 42.1 41.8 3.3 3.4 3.1 y/y 2.2 2.0 2.0 38.1 38.7 38.7 +1.5% Jun 21 Mar 22 Jun 22 Performing loans NPEs Jun 21 Mar
Slide 10: Funding composition
Funding composition Quarterly evolution Retail funding €/bn €/bn -0.4% -1.0% -5.3% 45.4 45.7 45.2 +0.4% 75.5 71.2 71.5 7.4 5.7 6.0 Jun 21 Mar 22 Jun 22 Corporate funding €/bn -12.7% +2.9% 14.6 12.3 11.9 30.1 25.6 26.3 Jun 21 Mar 22 Jun 22 Current accounts Term deposits Bonds and other Jun 21 Mar 22
Slide 11: Italian govies portfolio
Italian govies portfolio Italian govies portfolio breakdown Italian govies portfolio at FVTOCI €/bn 13.3 13.6 13.2 3.9 4.0 4.2 Jun 21 Mar 22 Jun 22 FVTOCI Duration ~2.4 ~1.8 ~1.7 4.3 4.7 (years) 4.1 FVTOCI Credit spread sensitivity -1.1 -1.1 -0.9 5.1 4.9 4.9 (€/mln) Jun 21 Mar 22 Jun 22 Amortized co
Slide 12: Net fee and commission income
Net fee and commission income quarterly evolution Banking fees Wealth Management fees €/mln €/mln -1.4% -11.3% +0.8% -6.5% 203 198 200 180 171 160 106 109 104 71 60 53 54 46 48 109 111 106 43 43 47 2Q21 1Q22 2Q22 2Q21 1Q22 2Q22 Loans Current accounts and other* Payments and cards Continuing fees Up-
Slide 13: Net fee and commission income
Net fee and commission income yearly evolution Banking fees Wealth Management fees €/mln €/mln -0.4% -7.0% 399 398 355 330 141 113 211 213 105 94 214 217 83 90 1H21 1H22 1H21 1H22 Loans Current accounts and other* Payments and cards Continuing fees Up-front fees • 1H22 banking fees stable y/y • Weal
Slide 14: Indirect funding
Indirect funding Indirect funding breakdown AuM & Bancassurance breakdown €/bn €/bn -11.0% -6.8% 104.6 64.1 62.8 58.9 99.8 93.1 Market effect 8% 8% 8% 40.5 q/q y/y 37.1 34.2 46% 46% 47% -9% -10% 64.1 62.8 58.9 -6% -9% 46% 46% 45% Jun 21 Mar 22 Jun 22 Jun 21 Mar 22 Jun 22 AuM & Bancassurance Asset un
Slide 15: Operating costs
Operating costs quarterly evolution HR costs Operating costs €/mln -0.5% €/mln +0.3% 359 357 0.0% 356 -0.4% 533 535 533 2Q21 1Q22 2Q22 Non-HR costs €/mln +1.2% -1.8% 174 179 176 2Q21 1Q22 2Q22 2Q21 1Q22 2Q22 • Cost stable y/y, with non-HR costs up by +1.2% and lower HR costs • Operating costs down b
Slide 16: Operating costs
Operating costs yearly evolution HR costs Operating costs €/mln €/mln -0.9% 719 713 -0.4% 1,073 1,068 1H21 1H22 Non-HR costs €/mln +0.4% 354 356 1H21 1H22 1H21 1H22 • Operating costs under control, lower by -0.4% y/y despite high inflation • HR costs lower y/y by -0.9% thanks to FTEs reduction, whil
Slide 17: Gross NPE stock
Gross NPE stock Gross NPE stock Breakdown by category €/bn -3.2% €/bn +1.3% 4.2 4.2 4.1 4.1 4.0 4.0 -25% y/y 0.1 0.0 0.0 3.2 0.0 2.5 2.2 2.2 3.2 1.9 1.6 1.8 1.8 1.2 Jun 21 Mar 22 Jun 22 Jun 22 Jun 21 Mar 22 Jun 22 Jun 22 proforma proforma Gross NPE Bad loan UTP Past due 4.9% 4.8% 4.9% 3.9% ratio Net
Slide 18: Coverage and cost of risk
Coverage and cost of risk NPE coverage breakdown Cost of risk (bps) 63.3% 64.5% 65.6% 68.7% 34.6% 24.6% 36.3% 39.5% 38.4% 26.0% 23.5% 24.6% 1H22 CoR Bad loan Coverage UTP Coverage Past Due Coverage 56 58 57bps Jun 21 Mar 22 Jun 22 31 Total NPE coverage 50.8% 51.8% Bad loans/ Total NPEs FY21 1Q22 2Q2
Slide 19: Capital
Capital CET1 ratio phased-in Regulatory capital ratios phased-in Jun 21 Mar 22 Jun 22 SREP 12.1% 11.6% 11.7% CET1 ratio (%) 12.1% 11.6% 11.7% 8.80% 8.8% Tier 1 ratio (%) 12.1% 11.6% 11.7% 10.81% Total capital 15.5% 15.3% 15.4% 13.50% ratio (%) Jun 21 Mar 22 Jun 22 SREP 2022 CET1 ratio fully loaded R
Slide 20: Petitum related to disclosed financial information
Petitum related to disclosed financial information €/bn Gross petitum Jun 21 Mar 22 Jun 22 • Increase of extrajudicial serial claims placed by the same consulting Financial information 2014-2015 0.2 0.3 0.3 Claims company on behalf of institutional excluding civil Financial information 2008-2011 0.4
Slide 21: Legal risk – some comments
Legal risk – some comments ▪ Court decisions in 2022 - confirming the positive jurisprudential trend of the precedent years - are all in favour of the Bank: ▪ Florence Court decision of February 2nd, 2022 ▪ Milan Appeals Court of May 6th, 2022 ▪ In May 2022, the Milan Appeals Court judgement fully d
Slide 22: Conclusions
Conclusions ▪ Net profit reported at EUR 27mln in 1H22 ▪ 1H22 gross operating profit up by +12.6% y/y, thanks to NII up by +12.8% y/y, excluding capital gains on securities in both periods ▪ Successful NPE portfolio sale completed ahead of the schedule, allowing to reduce the proforma Gross NPE rati
Slide 23: Annexes
Annexes E DEI PASCHI DI SIENA
Slide 24: Reclassified Income Statement
Reclassified Income Statement 2Q22/ 1H22/ € mln 2Q22 1Q22 1H22 1H21 1Q22(%) 1H21(%) Net Interest Income 337 323 660 585 +4.3% +12.8% Net fees and commission income 359 369 728 755 -2.6% -3.5% Profit (loss) of equity-accounted investments (AXA) -3 14 11 47 n.m. -75.5% Core Revenues 694 706 1,400 1,38
Slide 25: Balance Sheet
Balance Sheet Total Assets (€/mln) Jun-21 Dec-21 Mar-22 Jun-22 QoQ% YoY% Loans to Central banks 25,571 20,770 15,393 17,627 14.5% -31.1% Loans to banks 3,134 3,493 2,425 1,432 -40.9% -54.3% Loans to customers 81,356 79,380 79,260 78,622 -0.8% -3.4% Securities assets 23,122 22,127 23,382 22,313 -4.6%
Slide 26: Lending & Direct Funding
Lending & Direct Funding Total Lending (€/mln) Jun-21 Dec-21 Mar-22 Jun-22 QoQ% YoY% Current accounts 2,824 2,696 3,085 3,097 0.4% 9.7% Medium-long term loans 56,971 56,268 56,418 55,808 -1.1% -2.0% Other forms of lending 12,655 13,152 13,763 14,267 3.7% 12.7% Reverse repurchase agreements 6,668 5,1
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