Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS

Banca Monte Dei Paschi Di Siena — H1 2010 Earnings Presentation

38 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, 2010

  1. Slide 1: ge, MONTE

    ge, MONTE \) DEI PASCHI 7 DISIENA BANCA DAL 1472

  2. Slide 2: 1H and 2Q2010 Results Presentation

    1H and 2Q2010 Results Presentation* * Revised version: It is noted that, owing to a misprint in slide 31 of our H1 2010 Presentation, changes in our Securities and Derivatives portfolio as compared to March 2010 -and footnote thereto- were mistakenly reported, whereas end-of-period total is confirme

  3. Slide 3: 1H and 2Q2010 Highlights

    1H and 2Q2010 Highlights Increasing volumes: Gaining market share:  Direct Funding (7.69%): +51 bps vsDec 09  Direct Funding: +8.8% YoY, +3.5% QoQ Commercial  Direct Funding (net of bond) (8.13%): +78 bps  Loans: +7.1% YoY, +3% QoQ activity vs Dec 09  Mortgage inflows: €8.7 bn (+73% YoY)  Mort

  4. Slide 4: 1H and 2Q10 Results

    1H and 2Q10 Results 1H and 2Q10 P&L (mln €) 2Q10 2Q10/1Q10 2Q10/2Q09 1H10 1H10/1H09 Net Interest Income 924.8 4.4% +4.4% +1.7% 1,810.6 -1.4% Net Fees 492.7 -0.2% +5.0% 986.6 +3.7% Basic income 1,417.5 +2.7% +2.8% 2,797.2 +0.4% Total Revenues 1,386.1 -2.7% -4.4% 2,810.2 -4.2% Operating Costs -830.6 -

  5. Slide 5: Commercial activity

    Commercial activity Commercial activity  Strong commercial activity: a further increase in commercial volumes and market shares P&L analysis  Direct Funding: +8.8% YoY, +3.5% QoQ, with +51bps market share since Dec 09; AUM stock: +9.6% YoY Risk and Capital Management  WM flows: €11.4bn, with a st

  6. Slide 6: Funding volumes and market shares on the rise

    Funding volumes and market shares on the rise Direct Funding* Direct Funding: market share* +8.8% +3.5% 158.2 7.69% 152.9 7.18% 7.27% 145.4 € bn Jun-09 Mar-10 Jun-10 Dec-09 Mar-10 Jun-10 Recent Current Account launched Direct Funding (net of bond): market share* 8.13% 7.69% 7.35% +28,000 new current

  7. Slide 7: WM inflows driven by Bancassurance

    WM inflows driven by Bancassurance Indirect Funding* WM inflows (Bonds, Bancassurance and Mutual Funds) +4.2% 129.0 135.3 134.4 -6.9% 83.4 85.7 84.3 12,219 11,382 45.7 49.6 50.1 € bn € mln Jun-09 Mar-10 Jun-10 1H09 1H10 AUM AUC Bonds Bancassurance Mutual Funds +54% 10,984 3,466 7,118 7,569 2,255 346

  8. Slide 8: Increasing lending volumes are strongly focused on quality…

    Increasing lending volumes are strongly focused on quality… Total Lending* Lending market share* +7.1% +49bps +3% +14bps 152.9 8.02% 8.03%** 148.5 7.89% 7.89% 142.9 7.54% € bn € bn Jun-09 Mar-10 Jun-10 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Market share of Performing and Non Performing Loans +34bps  PD

  9. Slide 9: … and driven by positive mortgage inflows

    … and driven by positive mortgage inflows Mortgage inflows Mortgages market share +32bps +73% 8.7 10.70% 10.59%* 5.1 10.27% 10.08% 9.92% € bn 1H09 1H10 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Opportunity for cross selling:  Inflows driven by MPS Mutuo Protection products (Life/P&C) Protezione (with Cap)

  10. Slide 10: The positive signs in the macroeconomic environment …

    The positive signs in the macroeconomic environment … Sales (May 2010 – YoY)* Orders (May 2010 – YoY)* Orders of 49.2% EU15*:20% 12.0% 8.9% 7.6% 26.6% 16.0% Total Sales Domestic Non-domestic Total New Domestic Non-domestic index market market orders index market market Business Confidence in Italy*

  11. Slide 11: … with different impacts on retail and corporate segments

    … with different impacts on retail and corporate segments Retail Loan portfolio breakdown: June10 vs June09 P.A. Private  Retail Loans: +16.6% YoY, driven by Large Corporate 5.4% 0.5% (=) Retail Mortgages (stock at c€40bn*) and Key (-10bps) 36.0% Clients (+100bps) 8.0% (=)  Strong increase of the

  12. Slide 12: Upturn in other Lending flows and market shares

    Upturn in other Lending flows and market shares Consum.it flows Leasing & Factoring flows +11% 2,810 1,442 2,178 +29% Factoring 1,302 Leasing 651 +23% 802 € mln € mln 1H09 1H10 1H09 1H10 Consumer credit market share Leasing market share +65bps +50bps 6.23% 5.96% 5.11% 5.21% 5.10% 5.31% 4.71% 4.57% J

  13. Slide 13: Commercial restructuring is yielding excellent results

    Commercial restructuring is yielding excellent results Direct Funding Loans WM Flows +18.6% 9.6 +3.8% +73% 13.5 1,592 13 8.1 920 € bn € bn € mln 1H09 1H10 1H09 1H10 1H09 1H10 New current accounts Net new customers 6,245 4,794 2,440 638 1H09 1H10 1H09 1H10 pag. 13

  14. Slide 14: P&L analysis

    P&L analysis Commercial activity P&L analysis  Resilient revenues, with Basic Income at an all- time high in the last 6 quarters Risk and Capital  NII: +4.4% QoQ, driven by the volume effect Management  Fees stable QoQ, +3.7% 1H10 vs 1H09  Confirmed the attention to cost control: ongoing structu

  15. Slide 15: A focus on Net interest income

    A focus on Net interest income Net interest income -1.4% 1,836 1,811 +4.4% 910 913 925 890 886 € mln € mln 1H09 1H10 2Q09 3Q09 4Q09 1Q10 2Q10 2Q10 Net Interest Income: Impact from Spread and Volumes +63 925 886 -24 € mln 1Q10 ALCO Effect Volumes Effect 2Q10 pag. 15

  16. Slide 16: A focus on Commercial Mark up and Mark down

    A focus on Commercial Mark up and Mark down Mark up GMPS reorganisation completed Market* MPS Mark down GMPS reorganisation completed Market* MPS * “Matrice” Bank of Italy pag. 16

  17. Slide 17: Fees: stable at the good 1Q level

    Fees: stable at the good 1Q level Fees +3.7% 986.6 -0.2% 951.2 493.9 492.7 469.3 476.4 465.7 € mln € mln 1H09 1H10 2Q09 3Q09 4Q09 1Q10 2Q10 1H10 Fees: Breakdown +28.3% +17.1% o.w. +11.9% +3.7% Total fees AuM fees Credit line usage fees Forex Exchange service fees pag. 17

  18. Slide 18: Other Revenues affected by market volatility

    Other Revenues affected by market volatility Other revenues 146.6 71.1 44.4 13.0 17.6 11.4 € mln € mln 1H09 1H10 -31.4 2Q09 3Q09 4Q09 1Q10 2Q10 2Q10 Other revenues: details (€mln) The aggregate reflects the Dividends and other income from equity sovereign debt crisis which investments 15.7 impacted

  19. Slide 19: Operating costs: a further containment

    Operating costs: a further containment Trends in Total Costs -0.8% -6.5% -3.4% -3.5% -8.0%* 2008 2009 1Q10 1H10 Cost/Income -400bps 64.2% 60.2% 63.2%* FY09 1H10 * Net of € 60mln in early retirement one-offs classified as Personnel Expenses pag. 19

  20. Slide 20: Strong and sustainable cost reduction

    Strong and sustainable cost reduction Operating Costs -3.5% 1,751 1,690 € mln 1H09 1H10 Personnel Expenses Other Administrative Expenses -5.75% Considering the -3.5% Effect of labour 1,112 1,073 contract renewal -4.8% 562 535 € mln € mln 1H09 1H10 1H09 1H10 pag. 20

  21. Slide 21: Human resources

    Human resources Headcount reduction* ~ 2,600 net outflows ~ 34,200 ~ -2,450 ~ 3,800 gross outflows ~ +1,700 ~ -500 ~ 31,600 ~ -1,350 2007 Early retirement Natural exits Hiring in the network Assets disposal 2Q2010  Net outflows: target fully achieved in 2009, two years ahead of schedule  361 gross

  22. Slide 22: The positive effects of reorganization on costs

    The positive effects of reorganization on costs Personnel Expenses (€mln) 652.4 602.0 599.4 614.8 595.4 574.4 563.6 556.5 537.4 516.6 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Other Administrative Expenses (€mln) 365.8 368.5 305.5 329.3 325.4 277.4 284.5 281.2 263.1 271.9 1Q08 2Q08 3Q08 4Q08

  23. Slide 23: Risk and Capital Management

    Risk and Capital Management Commercial activity  Asset quality in control:  Cost of credit: 77bps P&L analysis  Increasing NPL coverage: +70bps since March Risk and Capital  NPL flows: -20% QoQ Management  Collections: +15% YoY, with MPS Gestione Crediti‟s rating upgraded by Fitch Ratings and t

  24. Slide 24: Provisions towards a normalised level

    Provisions towards a normalised level Provisions (bps) 96 81 77 2009 1Q10 1H10 Breakdown by type of customers* (bps) +16bps +8bps QoQ QoQ -14bps 140 QoQ 122 -8bps 91 QoQ Stable 42 QoQ o.w. 20 o.w. Consumer (Retail + Mortgages SB Corporate SMEs Private) * Provisions calculated on loans disbursed at B

  25. Slide 25: A focus on NPLs inflows

    A focus on NPLs inflows NPLs: monthly inflows 213.6 -20% 161.0 183.9 147.3 1H10 NPL flows -6.3% YoY € mln monthly avg. 3Q09 monthly avg. 4Q09 monthly avg. 1Q10 monthly avg. 2Q10  NPL inflows from performing loan portfolio: -7.7% NPL flows breakdown: main sources  NPL inflows from other doubtful lo

  26. Slide 26: A focus on Watchlist loans inflows

    A focus on Watchlist loans* inflows Watchlist loans: monthly inflows** 290 224 188 198 140 120 € mln monthly avg. monthly avg. monthly avg. monthly avg. monthly avg. monthly avg. 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Flows of Watchlist loans: breakdown by Flows of Watchlist loans: breakdown by type of custo

  27. Slide 27: Minor increase in impaired loans. Good coverage level

    Minor increase in impaired loans. Good coverage level NPL, Watchlist, Restructured and Impaired loans coverage Past Due Loan stock (€ mln) Gross Net 40.4% 40.5% 40.1% NPL 11,525 5,018 vs March 10 +3.8% +2.3% Watchlist 5,263 4,289 vs March 10 +6.3% +7.1% Dec-09 Mar-10 Jun-10 Restructured** 1,278 1,23

  28. Slide 28: A focus on MPS Gestione Crediti

    A focus on MPS Gestione Crediti Collections Operating figures related to MPS Gestione Crediti  22 branches +15% 345 299  107,799 applications processed for a Net Book Value of € 5,466.5 mln  Cost income down from 74.6% in 1H09 to 64.6% in 1H10. € mln  ROE at 27.48% in 1H2010 vs 14.8% 1H2009 1H09

  29. Slide 29: A focus on BAV asset quality

    A focus on BAV asset quality Impaired loans 6M net flows Cost of credit (bps) 107 219.1 -76% 94 57 47.4 € mln 1H09 1H10 1H09 FY09 1H10 NPL Coverage Watchlist Loan Coverage 59.1% 14.5% 58.2% 13.1% FY09 1H10 FY09 1H10 pag. 29

  30. Slide 30: A snapshot of our liquidity position

    A snapshot of our liquidity position Loan/Deposit ratio Maturity of Bonds from 2010 (€ bn)* 3.5 3.3 3.3 1.02 0.98 0.97 0.97 2.0 1.4 1.3 0.6 0.6 2008 2009 1Q10 1H10 2010 2011 2012 2013 2014 2015 2016 2017- 2026 Senior Subordinated CD Programme and Counterbalancing Capacity** (€ mln)  L/D ratio impro

  31. Slide 31: A focus on Securities and Derivatives (1/2)

    A focus on Securities and Derivatives (1/2) The Securities and Derivatives Portfolio* Market Value (€ mln) 30 June 2010 HFT 16,229 AFS 15,437 L&R 3,159 Total Portfolio 34,824 + €10.7 bn NII-boosting portfolio expansion (vs Dec 09) of which:  + €8.4 bn on HFT portfolio: Italian government bonds with

  32. Slide 32: A focus on Securities and Derivatives (2/2)

    A focus on Securities and Derivatives (2/2) Portfolio Breakdown* Italy Govies: Breakdown by Maturity 4% 1% 3% 1% >3Y, <1Y, 4% 43.5% 29.7% 19% 68% 1Y-3Y, 26.8% Italian Government Bond Evoluzione VaR LimitVAR Portafoglio di Negoziazione Evolution trading bookdi Vigilanza Dir Gen Bonds Financial Sector

  33. Slide 33: Capital position being strengthened

    Capital position being strengthened Includes c€80mln Tier 1 ratio (%) for T-Bond Total Capital ratio (%) for 1H10 7.5 7.8 11.9 11.8 12.2 7.5 9.3 5.1 2008 2009 1Q10 2Q10 2008 2009 1Q10 2Q10  Tier 1 up c30bps vs March, notwithstanding the increase of assets  Further significant improvement expected

  34. Slide 34: Positive commercial performance leads us to look confidently to the second half

     The positive commercial performance shown in the first six months leads us to look confidently to the second part of the year. In particular:  Q2 NII is considered as a structural basis for the remaining part of the year  Excellent results achieved in cost containment (exceeding year-start forec

  35. Slide 35: Thank you for your attention - Q&A

    Thank you for your attention Q&A pag. 35

  36. Slide 36: Contacts

    Contacts Declaration of the Financial Reporting Officer Strategic Planning, Pursuant to para. 2, article 154- bis of the Consolidated Law on Research & Investor Finance, the Financial Reporting Relations Officer, Mr. Daniele Bigi, declares that the accounting information Alessandro Santoni (Head) co

  37. Slide 37: Disclaimer

    Disclaimer This document has been prepared by Gruppo Monte dei Paschi di Siena solely for information purposes and for use in presentations of the Group’s strategies and financials. The information contained herein has not been independently verified. No representation or warranty, express or implie

  38. Slide 38: fe DEI PASCHI

    fe DEI PASCHI I SIENA ==” BANCA DAL 1472 www.mps.it

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