Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — Q1 2024 Earnings Presentation

22 slides from Credito Emiliano's earnings presentation, 2024

  1. Slide 1: Group Results 1Q24

    yr S= GROUP RESULTS 1024

  2. Slide 2: 1Q24: Highlights

    1Q24: HIGHLIGHTS €161 MLN 20.1% 17.5% PROFITABILITY NET PROFIT ROTE ROE Gross NPL Ratio Net NPL 2.7% Ratio 2.3% 1Q24 0.8% 2.0% ASSET QUALITY 14.56% CET1 6.96% Ratio 7.60% CAPITAL SOUNDNESS CET1 Ratio calculated at Credemholding level (prudential perimeter). Lowest P2R among banks directly supervised

  3. Slide 3: Business Diversification

    BUSINESS DIVERSIFICATION Operating Income 472.1 475.5 460.6 500.9 525.3 Core Operating Income** 422.0 460.4 457.7 491.0 480.6 0.3% 0.6% 2.3% €/million 2.0% 3.9% 8.6% 2.9% 0.0% 4.4% 50% 57% 62% 60% 54% 40% 40% 38% 38% 37% -0.7% 1Q23 2Q23 3Q23 4Q23 1Q24 Core NIM on Operating Income NII on Operating In

  4. Slide 4: Contribution to Consolidated Net Profit

    CONTRIBUTION TO CONSOLIDATED NET PROFIT Commercial banking Credem Banca €86.0 mln Private Banking Credem Euromobiliare €17.9 mln Private Banking Extended Banking Services, Consumer Credit & Other Credem Factor Credemtel €20.3 mln Credem Leasing Avvera Blue Eye MGT SATA Wealth Management Euromobiliar

  5. Slide 5: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT Δvs Δvs €/million 1Q23 4Q23 1Q24 1Q23 4Q23 Net Interest Income 234.8 302.9 285.6 21.6% -5.7% • Remarkable increase in revenues (+11.3% vs 1Q23), driven by Non Interest Margin 237.3 198.0 239.7 1.0% 21.1% the excellent growth of NII (+21.6% vs 1Q23), and the performance

  6. Slide 6: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) Net Interest Income (€/mln) Euribor and BTP/Bund spread 187 180 170 184 6.0% 5.9% 5.8% 5.7% 5.6% 5.5% 5.4% 5.3% 303 3.96% 148 5.2% 5.1% 5.0% 4.9% 4.8% 284 286 3.36% 3.78% 4.7% 4.6% 4.5% 4.4% 4.3% 270 4.2% 4.1% 3.92% 4.0% 3.9% 3.8% 3.7% 3.6% 2.63% 3.5% 3.4% 3.3% 235 3.2% 3.1

  7. Slide 7: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) Customers spread 3.49 3.60 3.56 Loans to customers 4.49 4.74 4.79 3.25 4.12 4.17 4.23 3.08 3.13 3.07 3.93 2.94 2.90 3.66 3.57 2.76 3.16 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Credem: spread Industry: spread Credem: average loans rate Industry: average loans rate

  8. Slide 8: Net Interest Income (3/3)

    NET INTEREST INCOME (3/3) Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 12,996 11,860 12,468 13,044 12,508 4.8 4.7 4.7 Ita Govies 1Q24 4.2 HTC 3.9 4.0 HTCS 0.1 FVTPL 0.0 38% 35% 38% 36% 32% Total 4.0 1Q23 1H23 9M23 FY23 1Q24 4% 4% 4% 4% 4% 25% • The overall securities port

  9. Slide 9: Non Interest Margin

    NON INTEREST MARGIN Total* (€/mln) 237.3 206.0 176.5 198.0 239.7 Performance Fees 40.5 13.8 23.0 Income from Financial 0.2 53.6 53.7 56.1 52.3 Activities 54.1 Banking Fees 21.7 24.1 14.0 23.4 19.8 Insurance Income 109.3 109.9 97.8 110.5 111.4 Asset Management and -3.6 Brokerage Fees 1Q23 2Q23 3Q23 4

  10. Slide 10: Operating Costs and D&A

    OPERATING COSTS AND D&A Operating costs (€/mln) Employees 207 206 188 231 221 6,608 6,616 6,628 6,636 6,195 6,201 6,219 6,068 6,140 5,899 5,763 5,609 64 70 63 65 62 167 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q24 144 142 127 152 Financial Advisors 1Q23 2Q23 3Q23 4Q23 1Q24 Payroll Adm

  11. Slide 11: Loans to Customers

    LOANS TO CUSTOMERS Loans to customers (€/bn) 9.8 9.7 9.6 9.8 9.8 Other Loans Residential Mortgage 10.4 10.6 10.6 10.1 10.5 Leasing 3.2 3.3 3.3 3.2 3.3 Consumer Finance 2.8 3.0 3.1 3.2 3.3 Short-Term Loans 7.9 8.3 7.8 8.9 7.7 1Q23 1H23 9M23 2023 1Q24 Total 33.8 34.8 34.4 35.7 34.6 Ongoing volume expa

  12. Slide 12: Group Customers Funding: Net Inflows Breakdown

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN AUC Direct Deposits AUM + Insurance Total Net Total Inflows Net Inflows Total Net Total Net Inflows netofof Inflowsnet Corporate Corporate 1,616 1,516 1,233 1,338 1,103 945 712 573 697 564 481 458 213 155 314 58 -28 -124 -146 -181 -203 -226 -264 -394 -3

  13. Slide 13: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE Total funding Direct deposits & retail bonds** €/mln FY23 1Q24 Sight / Saving Depo. 36,017 35,796 Industry Credem -0.5% YoY Retail Bonds & Other Deposits* 1,146 1,113 +153% Total Direct Funding 37,163 36,909 Insurance Reserves 8,173 8,564 +1.7% YoY Portfolio Management 5,

  14. Slide 14: Asset Quality: Gross NPL Ratio and Cost of Risk

    ASSET QUALITY: GROSS NPL RATIO AND COST OF RISK Gross Non Performing Loans (€/mln,%) 2022 2023 373 359 361 321 298 291 1Q24 Bad Loans Disposal 42 46 44 ~40 mn Gross Bad Loans Gross UTP Loans Gross Past Due Loans • The reduction in total NPL continued, they % on Loans (Credem) 0.9 0,9 0.8 1.1 1.0 1.0

  15. Slide 15: NPL: Coverage

    NPL: COVERAGE NPL (€/mln) Gross Net Coverage Bad Loans 290.7 55.9 80.8% UTP Loans 361.0 193.1 46.5% Past Due 43.7 32.3 26.1% Total NPL 695.4 281.3 59.5% + Net NPL +281.3 - (Shortfall + Addendum + Calendar) -27.8 NPL Coverage NPL Net of Shortfall 253.5 Coverage incl. Shortfall 63.5% 80.8% 63.5% • NPL

  16. Slide 16: Asset Quality: Benchmarking

    ASSET QUALITY: BENCHMARKING Gross NPL Ratio (%) Stage 2 (% of gross loans) 11.5% EBA* threshold 9.7% 6.5% 6.3% 2.7% 2.1% 2.0% 2.3% 1.9% 2022 2023 1Q24 2023 ITA 2023 EU 2023 1Q24 2023 ITA 2023 EU Coverage EBA* threshold The Group's excellent asset quality is best in class in the 65.0% Credem + indust

  17. Slide 17: Assets & Liabilities

    ASSETS & LIABILITIES Assets (€/mln) 35,715 34,552 FY23 1Q24 • Securities portfolio decreased due to some profit-taking in 1Q24. 8,960 8,545 • TLTRO III exposure set to zero after 7,591 6,868 7,136 5,640 6,091 5,453 740 million repayment in 1Q24. • The reduction in institutional bonds 105 was driven

  18. Slide 18: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES Recent issues (€/mln) Maturities (€/mln) Retail Wholesale 0 100 200 300 400 500 600 Social €/mln Jan-24 Covered Bond Green 24 500+ Covered Bond 750+ Sep-23 Social SP 500 100 Jul-23 Social SP Retail 2023 Jul-23 Social SP Retail May-23 Green SNP Senior Preferred 600 500

  19. Slide 19: Liquidity (1/2)

    LIQUIDITY (1/2) Liquidity Reserves (€/bn) • The total value of the Group's Liquidity Reserves increased vs FY23 at 17.2 billion, Total 17.2 equal to 26.2% of Total Assets. 16.1 • The value of Cash and deposits with Central Banks decreased to 5.3 billion, after the last Other ECB eligible 6.2 repayme

  20. Slide 20: Liquidity (2/2)

    LIQUIDITY (2/2) NSFR LCR 232% 137% 134% 132% 186% 167% FY22 FY23 1Q24E FY22 FY23 1Q24 Loan to Deposit Ratio* 0.95 0.96 0.91 • Liquidity ratios remained sound and well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies. LCR at 186

  21. Slide 21: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS Fully phased figures Fully phased figures Credem Group Credemholding €, million FY23 1Q24 FY23 1Q24 CET 1 3,267 3,279 3,021 3,024 Total Capital 3,696 3,707 3,601 3,601 Capital absorption from: 1,686 1,650 1,697 1,662 Credit and Counterparty 1,495 1,459 1,493 1,457 Market

  22. Slide 22: Disclaimer and Contacts

    DISCLAIMER AND CONTACTS The manager responsible for preparing the company’s financial reports Mr. Paolo Tommasini of Credito Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corres

Credito Emiliano S.p.A. (Credem Group) — Q1 2024 Earnings Presentation on 6ix