Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — 9M FY2023 Earnings Presentation
49 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, May 11, 2023
Slide 1: Mediobanca 9M/3Q Results as at 31 March 2023
MEDIOBANCA 9M/3Q RESULTS AS AT 31 MARCH 2023 Milan, 11 May 2023
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 3: Strong results with trajectory and quality unchanged
STRONG RESULTS WITH TRAJECTORY AND QUALITY UNCHANGED 9M RESULTS: All-time high revenues and net profit. Path to exceed BP23 targets confirmed 9M revenues at €2,418m (up 13% YoY), 80% of €3bn BP23 target (12m) Net profit at €791m (up 10% YoY) EPS €0.93 (up 12% YoY), 85% of €1.1 BP23 target (12m) ROTE
Slide 4: 9M23 KPIs
9M23 KPIs Executive Summary Section 1 MEDIOBANCA GROUP – 9M as at Mar23 EPS up 12% to €0.93, ~85% of BP FY23 target (€1.1) ROTE up 3pp to 13% EPS 9m RORWA ROTE adj TBVPS RoRWA at 2.1% PER SHARE €0.93 2.1% 13% €9.8 +12% YoY +0.1pp YoY +3pp YoY -13% YoY Revenues €2.4bn (up 13% YoY, ~80% of BP FY23 tar
Slide 5: 3Q23 Snapshot
3Q23 SNAPSHOT Executive summary Section 1 Group: sound results despite market volatility Mediobanca Group – 3Q results as at Mar23 Second best ever quarter with revenues at €759m, up 10% YoY Revenues NII CoR Net profit (down 16% QoQ, as 2Q was a record quarter), with NII growing, €759m €456m 40bps €
Slide 6: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 7: In a challenging but still sound market environment
IN A CHALLENGING BUT STILL SOUND MARKET ENVIRONMENT… 9M/3Q - Group results Section 2 Italian households’ deposits normalizing on a solid Saving flows high in Premier/Private segment, with AUA upward trend, gradually better remunerated in the spotlight for increasing yields (Source: ECB, €bn) (Source
Slide 8: We increased AUM/AUA to €57bn – TFAs at €85bn
…WE INCREASED AUM/AUA TO €57BN (UP 11%) – TFAs@€85BN… WITH GUIDED WM LIQUIDITY CONVERSION INTO SYNERGIC MB ASSETS DEPOSITS STABLE 9M/3Q - Group results Section 2 Group TFAs trend (€bn) MBWM: NNM by quarter (€bn) 84.7 80.2 0.1 4.4 0.9 0.1 0.6 NNM breakdown 57.4 2.4 51.5 AUM/AUA +5.8 2.1 1.7 1.5 - Pri
Slide 9: We maintained a comfortable funding position
… WE MAINTAINED A CONFORTABLE FUNDING POSITION… RECORD €6BN ISSUED IN 9M WITH ENLARGED INVESTORS REACH 9M/3Q - Group results Section 2 Record bond issuances In last 9M: €6bn issued… …with WM (proprietary & third-party) channels active and high demand from institutional investors… (€bn) (9M23 Bond is
Slide 10: We financed robust and value-driven asset growth
…WE FINANCED ROBUST AND VALUE-DRIVEN ASSET GROWTH 9M/3Q - Group results Section 2 Loans: high quality origination, driven by value CF loans up 7% YoY CIB1 loans broadly flat WM2 loans up 11% YoY €bn €bn €bn 5.0 22 14.1 14.4 16 1 20 4.5 21 3 13.8 13.9 18.1 18.0 18.3 18.2 17.7 16.7 13.5 16.4 4.0 20 3.
Slide 11: All-time high 9M revenues (>€2.4bn)
ALL-TIME HIGH 9M REVENUES (>€2.4BN) GROWING (UP 13% YoY) AND DIVERSIFIED 9M/3Q - Group results Section 2 Group revenues up 13% YoY over €2.4bn WM: main growth driver in past two years (Group revenues, €m, 9M) (WM revenues, €m, 9M) +13% YoY +9% YoY +13% YoY +17% YoY 2,418 1,964 2,147 614 Fees 543 Fee
Slide 12: NII: sustained growth trend ongoing
NII: SUSTAINED GROWTH TREND ONGOING UP 8% ADJ QoQ 9M/3Q - Group results Section 2 NII trend by division (€m, 3M) Loan book trend by divisions (€bn) +17% YoY €1,299m €1,106m +8%1 447 456 +4% YoY 396 42 42 Mar23 16.7 14.4 20.4 53.2 358 375 373 373 74 -1% 67 68 65 66 62 QoQ 60 88 93 Dec22 16.4 14.1 21.
Slide 13: Fees: keep on growing (2% YoY)
FEES: KEEP ON GROWING (2% YOY) NORMALIZING IN 3Q 9M/3Q - Group results Section 2 Fee income trend by division (€m, 3M) CIB fees (€m, 3M) 117 93 8 +2% YoY 76 24 7 69 68 69 €657m 11 Specialty fin 7 15 7 24 53 €645m 17 7 7 Lending 262 14 19 25 8 13 9 CapMkt 1 20 9 241 59 61 14 Advisory 39 28 33 38 210
Slide 14: Healthy asset quality preserved
HEALTHY ASSET QUALITY PRESERVED COR FLAT @53BPS IN 9M, DOWN TO 40BPS IN 3Q 9M/3Q - Group results Section 2 CoR trend (bps) 9M22 9M23 Group 52bps Group 53bps CF 144bps CF 143bps Overlay stock trend (€m) CIB -20bps CIB 22bps 160 141 138 146 142 141 133 ~300 CF ~280 ~285 ~60 ~45 ~45 51 60 71 45 48 40 3
Slide 15: Prudent staging
PRUDENT STAGING NPLs DOWN AND COVERAGE RATIOS UP 9M/3Q - 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 74% gross loans), with limited new 71% 8.0% 65% classifications in Corpor
Slide 16: Excellent asset quality confirmed in all divisions
EXCELLENT ASSET QUALITY CONFIRMED IN ALL DIVISIONS 9M/3Q - Group results Section 2 Net NPLs (€m) of which bad loans (€m) NPL coverage NPLs as % of loans (“deteriorate”) (“sofferenze”) 68% 71% 74% 2.7% 2.5% 2.4% -13% Gross Mediobanca -18% 0.9% 0.7% 0.6% 452 384 61 53 Group 334 44 Net Mar22 June22 Mar
Slide 17: Capital ratios up >30bps QoQ
CAPITAL RATIOS UP >30BPS QoQ CET1 PHASE-IN @15.4% - FULLY LOADED @ 14.4% 9M/3Q - Group results Section 2 CET1 phased-in ratio1 trend (QoQ) +35bps (30bps) (15bps) (5bps) 15.7% +45bps 15.4% 15.1% 7.95%2 CET1 SREP req. for 2023 14.5% FL 14.0% FL 14.4% FL CET1 CET1 Earnings RWA 70% Insurance Other CET1
Slide 18: 9M23 results summary
9M23 RESULTS SUMMARY 9M/3Q - Group results Section 2 Financial results Highlights 9M D 3Q23 2Q23 3Q23 €m 9M revenues over €2.4bn (up 13% YoY), with all sources Mar23 YoY1 Mar23 Dec22 Mar22 contributing soundly: Total income 2,418 +13% 759 902 688 Net interest income 1,299 +17% 456 447 373 Double-dig
Slide 19: ESG – new Group ESG policy and new Group D&I code
ESG – NEW GROUP ESG POLICY AND NEW GROUP D&I CODE 9M/3Q - Group results Section 2 ENVIRONMENT ENVIRONMENT SOCIAL Group ESG Policy Stable products development Diversity & Inclusion Group Code BoD approval of revised version of €500m Sustainable Senior Preferred BoD approval of the new D&I Group Group
Slide 20: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 21: All divisions with high double-digit ROAC
ALL DIVISIONS WITH HIGH DOUBLE-DIGIT ROAC 9M23 Divisional results Section 3 Revenues (€m, 9M) GOP risk adj. (€m, 9M) Net profit (€m, 9M) ROAC +13% ROTE adj. 13.4% +18% +10% 10.2% 12.1% Mediobanca 2,418 1,174 2,147 995 791 9.8% Group 716 ROTE March22 March23 March22 March23 March22 March23 March22 Ma
Slide 22: WM: robust growth and highly profitable
WM: ROBUST GROWTH AND HIGHLY PROFITABLE 9M REVENUES ~€615m (up 13%) – 9M NET PROFIT ~€130m (up 22%) 9M/3Q - Divisional results - WM Section 3 Financial results Highlights 9M D 3Q23 2Q23 3Q22 Sound results by MBWM in last 9M despite market volatility: €m Mar23 YoY1 Mar23 Dec22 Mar22 Strong rebound in
Slide 23: In a different macro…
IN A DIFFERENT MACRO… 9M/3Q - 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 16.8bn % stock +1.5% +1.9% +1.3% +1.8% +1.1% +2.9% +2.9% Market - +2.0% -4.8% -7.4% -2.5% +1.5% NA performance 16.2 12.4 13.1 €3bn liquidity 9.5 outflows
Slide 24: …MB had a sound trend in NNM and TFA
…MB HAD A SOUND TREND IN NNM AND TFA €6BN AUM/AUA INFLOWS IN 9M, ow €2.4BN IN LAST Q 9M/3Q - Divisional results - WM Section 3 Group TFAs trend (€bn) MBWM: NNM by quarter (€bn, % AUM/AUA) 3.8% 3.2% 4.0% 2.8% 4.3% 84.7 1.1% 1.1 2.5% 80.2 0.9 0.1 0.1 0.6 4.4 0.9 1.9 2.1 2.4 1.7 1.5 1.3 0.5 (0.2) NNM b
Slide 25: Recent banks crisis favoured flight to quality
RECENT BANKS CRISIS FAVOURED FLIGHT TO QUALITY REBOUND IN HIGH-QUALITY RECRUITMENT IN LAST 3M ATTRACTIVENESS OF MB BUSINESS MODEL Distribution network up to >1.2K Cumulated liquidity events (Mediobanca Private Investment Banking) +55 1,215 Cumulated 1,160 €4.9bn 147 137 +13 +4 +38 911 1.8 516 1.5 13
Slide 26: Consumer Finance: strong results
CONSUMER FINANCE: STRONG RESULTS 9M REVENUES ~€840m (up 7%) – 9M NET PROFIT ~€290m (up 3%) 9M/3Q - Divisional results - CF Section 3 Financial results Highlights 9M D 3Q23 2Q23 3Q22 Solid growth in 9M23, with new business not affected by repricing, €m Mar23 YoY1 Mar23 Dec22 Mar22 and no signs of ass
Slide 27: BNPL growing and steadily becoming more visible
BNPL GROWING AND STEADILY BECOMING MORE VISIBLE COMBINING COMPASS’S RISK MANAGEMENT STRENGTHS WITH FINTECH BOOST 9M/3Q - Divisional results - CF Section 3 Pagolight growing progressively, alongside … …with new product features and fintech capability (SP loans new business and Pagolight increasing we
Slide 28: Strong asset quality further enhanced
STRONG ASSET QUALITY FURTHER ENHANCED 9M/3Q - 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 60.0 280 223 196 50.0 174 1
Slide 29: CIB: robust results in a harder market
CIB: ROBUST RESULTS IN A HARDER MARKET 9M REVENUES ~€565m (up 14%) – 9M NET PROFIT ~€185m (down 8%) 9M/3Q - Divisional results - CIB Section 3 Financial results2 Highlights 9M D 3Q23 2Q23 3Q22 Challenging market trend, as high volatility and high €m Mar23 YoY1 Mar23 Dec22 Mar22 interest rates are re
Slide 30: In a challenging environment for IB…
IN A CHALLENGING ENVIRONMENT FOR IB… 9M/3Q - Divisional results - CIB Section 3 European Volumes on Completed Deals ($bn) Italian Volumes on Completed Deals ($bn) -26% -33% 807 798 812 80 751 678 695 67 18 652 602 594 593 600 576 2 546 456 414 328 432 520 517 52 496 510 28 49 407 339 42 476 271 320
Slide 31: …MB demonstrated ability to navigate the market in M&A
…MB DEMONSTRATED ITS ABILITY TO NAVIGATE THE MARKET WITH A RESILIENT PERFORMANCE IN M&A… 9M/3Q - Divisional results - CIB Section 3 Selected M&A Large Corp Transactions Pending Pending November 2022 September 2022 August 2022 In last 9M1: over 32 transactions announced for a total volume of €15.3bn;
Slide 32: …as well as in capital markets and lending
…AS WELL AS IN CAPITAL MARKETS AND LENDING 9M/3Q - Divisional results - CIB Section 3 Stake building in Anima as Sole Bookrunner (largest RABB ever in Selected ECM Transactions Italy), BMPS rights issue as JGC (2nd largest RI in Europe in 2022) February 2023 January 2023 December 2022 November 2022
Slide 33: Insurance: positive contribution
INSURANCE: POSITIVE CONTRIBUTION 9M/3Q - Divisional results - Insurance Section 3 Financial results Highlights 9M D 3Q23 2Q23 3Q22 9M23 net profit at €283m, up 13% YoY driven by AG €m Mar23 YoY1 Mar23 Dec22 Mar22 performance (up 10% YoY), which offset lower dividend Total income 293 +8% 95 111 77 co
Slide 34: Holding Functions – improved results
HOLDING FUNCTIONS – IMPROVED RESULTS 9M/3Q - Divisional results - HF Section 3 Financial results3 Highlights 9M23 loss €91m, 27% lower YoY, on higher contribution 9M D 3Q23 2Q23 3Q22 €m Mar23 YoY1 Mar23 Dec22 Mar22 from Treasury, notably in the NII component which benefited from inflation-linked cou
Slide 35: Funding sources managed actively and efficiently
FUNDING SOURCES MANAGED ACTIVELY AND EFFICIENTLY ~ €12.5BN RAISED IN LAST 12M AT ~95BPS VS EUR3M AVG COST 9M/3Q - Group results Section 2 Solid funding performance, with strong bond issuance (including €0.3bn of T2) planned to overfund expiring bonds and prepay/smoothe TLTRO (€bn) (€bn, cost in bps
Slide 36: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 37: Closing remarks
CLOSING REMARKS Closing remarks Section 4 FY23 guidance 12M revenues at ~€3.2bn, up 12% YoY, ahead of €3bn BP23 target o.w. NII ~€1.8bn up 20% YoY o.w. Fees >€0.8bn resilient YoY CoR at 50-55bps GOP risk adj ~€1.5bn, up >15% YoY 70% Cash pay-out 37
Slide 38: Mediobanca 9M/3Q Results as at March 2023
MEDIOBANCA 9M/3Q RESULTS AS AT 31 MARCH 2023 Milan, 11 May 2023
Slide 39: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 40: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 9M results as at March 2023 Annex 1 9m 9m ∆ €m 3Q23 2Q23 1Q23 4Q22 3Q22 Mar23 Mar22 YoY1 Total income 2,418 2,147 13% 759 902 757 704 688 Net interest income 1,299 1,106 17% 456 447 396 373 373 Fee income 657 645 2% 185 262 210 205 202 Net treasury income 172 132 30% 24 84 65 29
Slide 41: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 9M results as at March 2023 Annex 1 ∆ ∆ €bn Mar23 Dec22 June22 Mar22 QoQ1 YoY1 Funding 58.8 62.0 61.2 59.3 -5% -1% Bonds 21.4 20.6 18.5 18.5 +4% +16% WM deposits 27.5 28.8 28.8 28.1 -5% -2% ECB 6.2 8.0 8.4 8.4 -22% -26% Others 3.6 4.5 5.4 4.2 -21% -13% Loans to customers 53.2 53
Slide 42: Wealth Management results
WEALTH MANAGEMENT RESULTS 9M results as at March 2023 Annex 1 9m 9m ∆ €m 3Q23 2Q23 1Q23 4Q22 3Q22 Mar23 Mar22 YoY1 Total income 614 543 +13% 206 209 199 183 179 Net interest income 265 219 +21% 93 88 84 76 72 Fee income 341 317 +8% 111 118 112 105 104 Net treasury income 7 7 -1% 2 3 2 3 3 Total cost
Slide 43: Consumer Finance results
CONSUMER FINANCE RESULTS 9M results as at March 2023 Annex 1 9m 9m ∆ €m 3Q23 2Q23 1Q23 4Q22 3Q22 Mar23 Mar22 YoY1 Total income 841 789 +7% 281 284 276 269 265 Net interest income 740 699 +6% 247 249 243 236 237 Fee income 102 90 +13% 34 35 33 33 28 Total costs (252) (228) +11% (88) (86) (78) (87) (7
Slide 44: CIB results
CIB RESULTS 9M results as at March 2023 Annex 1 9m 9m ∆ €m 3Q23 2Q23 1Q23 4Q22 3Q22 Mar23 Mar22 YoY1 Total income 565 497 +14% 135 248 182 142 139 Net interest income 209 191 +10% 74 68 67 62 66 Fee income 239 238 +0% 53 117 69 68 69 Net treasury income 117 68 +71% 8 63 47 12 5 Total costs (239) (21
Slide 45: Insurance results
INSURANCE RESULTS 9M results as at March 2023 Annex 1 9m 9m ∆ €m 3Q23 2Q23 1Q23 4Q22 3Q22 Mar23 Mar22 YoY1 Total income 293 271 +8% 95 111 87 101 77 Impairments (3) (6) -47% 9 (1) (11) (27) (6) Net result 283 251 +13% 100 105 78 69 66 Book value (€bn) 2.9 4.6 -37% 2.9 3.0 3.3 3.9 4.6 Ass. Generali (
Slide 46: Holding Function results
HOLDING FUNCTION RESULTS 9M results as at March 2023 Annex 1 9m 9m ∆ €m 3Q23 2Q23 1Q23 4Q22 3Q22 Mar23 Mar22 YoY1 Total income 131 64 n.m. 49 62 19 14 33 Net interest income 68 (17) n.m. 36 35 (3) (5) (7) Net treasury income 38 41 -8% 11 14 12 7 25 Fee income 25 40 -37% 2 13 11 12 15 Total costs (14
Slide 47: 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 CF Consumer finance FAs Fi
Slide 48: 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 49: 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 Francesca Mari Tel. no. (0039)