Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — Q1 FY2024 Earnings Presentation
51 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Oct 26, 2023
Slide 1: Mediobanca 3M/1Q24 Results as at 30 September 2023
MEDIOBANCA 3M/1Q24 RESULTS AS AT 30 SEPTEMBER 2023 Milan, 26 October 2023
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 3: Record 3M results with a strong start to One Brand-One Culture Business Plan execution
RECORD 3M RESULTS WITH A STRONG START TO “ONE BRAND-ONE CULTURE BUSINESS PLAN” EXECUTION… Executive summary Section 1 ➢ Revenues >€860m in 1Q, up >€100m YoY Record ➢ Record net profit >€350m, with 3M EPS at €0.41 (up 34% YoY, up 49% QoQ) 3M results ➢ Efficiency preserved across Group (C/I ratio at 4
Slide 4: Rooted in our responsible banking approach
… ROOTED IN OUR RESPONSIBLE BANKING APPROACH Executive summary Section 1 ✓ CONSUMER FINANCE - Growth to be pursued with multichannel leadership and distribution independence ➢ Sound new business (€1.9bn in 1Q) with repricing ongoing and BNPL more than doubled YoY (€77m in 1Q) ➢ Proprietary channels
Slide 5: 1Q24 KPIs: €351M net profit, 14% ROTE, 2.8% RoRWA
1Q24 KPIS: €351M NET PROFIT, 14% ROTE, 2.8% RORWA Executive summary Section 1 Financial results Highlights MEDIOBANCA GROUP – 3M as at Sept23 Growth in EPS: €0.41 up 34% YoY (up 49% QoQ) EPS 3m BVPS TBVPS No. shares/ow Growth in BVPS (€12.5, up 12% YoY) treasury PER TBVPS (€11.6, up 13% YoY) SHARE €
Slide 6: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 7: Selective and value-driven asset growth
SELECTIVE AND VALUE-DRIVEN ASSET GROWTH TFAS UP €8BN, RWAS DOWN €1.7BN 3M/1Q24 - Group results Section 2 Double-digit growth in TFAs to €89bn …with €1.8bn in NNM from AUM/AUA in 1Q24 AUM/AUA up 18% to €61.6bn, deposits at €27.6bn €1.4bn from AUA, €0.4bn from AUM, guided deposit conversion (Group TFA
Slide 8: Growing revenues supported by business diversification
GROWING REVENUES SUPPORTED BY BUSINESS DIVERSIFICATION 3M/1Q24 - Group results Section 2 Double-digit growth in Group revenues WM: best-ever top line result Built on sound diversification (Group revenues, €m, 3M) (WM revenues, €m, 3M) +10% 218 199 Fees +14% NII 50% 49% 864 Fees 1Q23 Sept22 1Q24 Sept
Slide 9: NII: sustained growth driven by A&L management
NII: SUSTAINED GROWTH DRIVEN BY A&L MANAGEMENT… NII UP 25% YoY AND UP 5% ADJ QoQ 3M/1Q24 - Group results Section 2 NII trend by division (€m, 3M) Assets: yield2 increasing, rebalancing mix +25% YoY CIB: - €2.4bn Banking book CF: +€0.6bn 502 securities up €2.6bn 447 WM: +€0.9bn o/w 30 inflation 496 o
Slide 10: With comfortable funding position
WITH COMFORTABLE FUNDING POSITION ~ €1.9BN FUNDING RAISED IN LAST 3M AT ~105BPS VS EUR3M AND 3Y AVG MATURITY 3M/1Q24 - Group results Section 2 WM funding1 resilient and sound bond issuance driven by high investor appetite (€bn) (€bn) 60.5 SP to third- 60.2 4.5 4.9 1Q24 bond parties networks 5.6 4.6
Slide 11: Fees: soft market trends well managed
FEES: SOFT MARKET TRENDS WELL MANAGED ARMA PARTNERS CONSOLIDATED FROM NEXT Q 3M/1Q24 - Group results Section 2 Fee income trend by division (€m, 3M) CIB fees (€m, 3M) 117 8 -14% 24 69 Specialty fin 262 7 24 53 51 48 Lending 25 8 8 1 -4% 9 9 8 CapMkt 210 61 14 10 117 185 187 180 11 6 Advisory 38 23 2
Slide 12: CoR flat at 46bps
COR FLAT @46bps NORMALIZING COR IN CF - STRONG CIB PERFORMANCE 3M/1Q24 - Group results Section 2 CoR trend (bps) Overlay stock trend (€m) 165 CF 146 148 ~300 142 141 ~270 ~265 ~60 ~40 ~40 71 48 46 46 Group 40 ~215 ~210 ~205 60 5 6 5 7 WM 9 10 CIB (2) Sept22 June23 Sept23 (5) (12) CF CIB Other 1Q23 2
Slide 13: Prudent staging
PRUDENT STAGING GROSS NPL RATIO AT 2.6% AND HIGH COVERAGE RATIOS 3M/1Q24 - Group results Section 2 Gross NPLs – Stage 31 Net NPLs – Stage 31 ➢ Stage 3 – Gross NPLs up 4% YoY and (Net exposure/Loans) QoQ to 2.6% of gross loans, reflecting a 72.4% 72.1% modest increase in Consumer Finance, 71.5% 8.0%
Slide 14: Excellent asset quality confirmed at all divisions
EXCELLENT ASSET QUALITY CONFIRMED AT ALL DIVISIONS 3M/1Q24 - Group results Section 2 Net NPLs (€m) of which bad loans (€m) NPL coverage NPLs as % of loans (“deteriorate”) (“sofferenze”) 72% 72% 72% 2.5% 2.5% 2.6% +5% -13% Gross Mediobanca 0.7% 0.7% 0.8% Group 367 374 395 51 41 36 Net Sept22 June23 S
Slide 15: Capital optimization and reallocation under way
CAPITAL OPTIMIZATION AND REALLOCATION UNDER WAY RWA DOWN €1.7BN YOY – RORWA UP 60BPS TO 2.8% 3M/1Q24 - Group results Section 2 RWAs trend by division (€bn, incidence %) Divisional RoRWA (3M, %) -3% YoY INS 4.2% 52.0 100% 51.4 100% 50.3 100% WM 3.2 6% 3.8 7% 4.3 8% 3.4% 3.5% 8.3 16% 8.7 17% 8.5 17% 3
Slide 16: High capital creation
HIGH CAPITAL CREATION CET1 PHASE-IN AND FULLY LOADED @15.5% 3M/1Q24 - Group results Section 2 CET1¹ ratio 1Q24 trend +35bps net capital creation (50)bps +55bps (40)bps +70bps (45)bps (25)bps 15.9% 16.2% FL1 FL1 15.5% FL1 June23 Earnings 70% Dividend RWA Other (incl. AG) ~ €200m BB AIRB FTA Sept23 pa
Slide 17: 1Q24 results summary
1Q24 RESULTS SUMMARY 3M/1Q24 - Group results Section 2 Financial results Highlights D D Good start to FY24, with net profit up 34% YoY (49% QoQ), driving €m 1Q24 4Q23 1Q23 YoY1 QoQ1 an increase in ROTE up to 14% and RoRWA to 2.8% Total income 864 887 757 +14% -3% Revenues at €864m (up 14% YoY and do
Slide 18: Sustainable banking
SUSTAINABLE BANKING FURTHER UPGRADE OF OUR ESG PROFILE 3M/1Q24 - Group results Section 2 GOVERNANCE ENVIRONMENT AGM on 28 Oct 2023 2nd TCFD report published and Stable products development The next AGM 2023 will: Second TCFD Report appoint the new Board of Directors and Statutory Enlarged scope of t
Slide 19: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 20: Group RoRWA up to 2.8% driven by K-light businesses
GROUP RORWA UP TO 2.8% DRIVEN BY K-LIGHT BUSINESSES 3M/1Q24 Divisional results Section 3 Revenues (€m, 3M) GOP risk adj. (€m, 3M) Net profit (€m, 3M) RoRWA & ROTE (%) 5.0% 17.0% +14% 4.5% ROTE 14.3% 15.0% 12.4% 4.0% 13.0% 3.5% Mediobanca 11.0% 864 +23% +34% 3.0% 757 9.0% 2.8% 2.5% 460 Group 351 RoRW
Slide 21: Wealth Management: One Brand – One Culture strategic path in 1Q
WEALTH MANAGEMENT “ONE BRAND – ONE CULTURE” STRATEGIC PATH IN 1Q 3M/1Q24 Divisional results - WM Section 3 ✓ MBWM: leading Wealth Manager attracting best talents, leveraging Private Investment Banking Model ➢ Senior recruitment in distribution ongoing (after key client team hired in spring 2023), ri
Slide 22: WM: record quarter
WM: RECORD QUARTER REVENUES~€220m – NET PROFIT €50m – RORWA @3.5% 3M/1Q24 Divisional results - WM Section 3 Financial results Highlights 1Q24 4Q23 1Q23 D D In an ongoing tough scenario for the WM industry, MBWM €m Sept23 June23 Sept22 YoY1 QoQ1 delivered record quarterly results in both revenues and
Slide 23: TFAs up to €89bn, with €1.8bn inflows of AUM/AUA
TFAS UP TO €89BN, WITH €1.8BN INFLOWS OF AUM/AUA… 3M/1Q24 Divisional results - WM Section 3 Group TFAs trend (€bn) MBWM: NNM by quarter (€bn) 88.0 89.1 1.2 (0.1) 20.6 21.9 2.9 2.3 1.0 NNM breakdown 0.8 0.1 1.2 AUM/AUA +1.8 1.1 - Private +0.9 39.3 2.1 2.4 2.1 50% qualified - Premier +0.5 39.7 1.8 1.3
Slide 24: Navigating a tough market
NAVIGATING A TOUGH MARKET 3M/1Q24 Divisional results - WM Section 3 Italian asset gatherers Net New Money1 (€bn, % on Stock) NNM in AUM/AUA 6.8bn 17.2bn 16.8bn 13.0bn 8.3bn % stock +1.1% +2.9% +2.9% +2.1% +1.3% Market -2.5% +1.5% +2.9% +1.1% n.a. performance 16.2 13.1 12.3 7.3 3.1 3.7 1.8 4.1 0.6 0.
Slide 25: Key 1Q24 initiatives
KEY 1Q24 INITIATIVES 3M/1Q24 Divisional results - WM Section 3 TFAs: €39bn up 12% YoY and 1% QoQ: €28bn AUM/AUA (up 21% YoY and 3% QoQ) €11bn deposits (down 6% YoY and 3% QoQ) Private Banking Key initiatives in 1Q: ongoing sound collaboration with CIB and development of P-I-B model with €0.3bn liqui
Slide 26: CIB: One Brand – One Culture strategic path in 1Q
CIB “ONE BRAND – ONE CULTURE” STRATEGIC PATH IN 1Q 3M/1Q24 Divisional results - CIB Section 3 ✓ MBCIB: leading international fee-driven investment bank, One Franchise approach in Italy with WM ➢ MB deal flow in 1Q: 30 transactions announced / completed, 50% internationally ➢ Sustained mid-market act
Slide 27: CIB: trend in continuity with last two soft quarters
CIB: TREND IN CONTINUITY WITH LAST TWO SOFT QUARTERS NET PROFIT IMPROVED QoQ (UP 22%) 3M/1Q24 Divisional results - CIB Section 3 Financial results Highlights Despite MB strong positioning, 1Q24 results – as expected - 1Q24 4Q23 1Q23 D D were affected by the general slowdown of the IB industry €m Sep
Slide 28: In a challenging environment…
IN A CHALLENGING ENVIRONMENT… 3M/1Q24 Divisional results - CIB Section 3 European Volumes on Completed Deals ($bn) Italian Volumes on Completed Deals ($bn) -24% 818 805 814 80 758 -19% 685 698 67 18 651 606 603 597 576 612 2 553 456 414 328 431 560 522 531 52 499 514 28 48 407 338 425 43 476 320 271
Slide 29: Leadership confirmed in investment banking in Italy
…LEADERSHIP CONFIRMED IN INVESTMENT BANKING IN ITALY… 3M/1Q24 Divisional results - CIB Section 3 M&A Italy 1Q FY23/24 by Deal Value ($bn)1 M&A Italy 1Q FY23/24 by # of Deals ($bn)1 DCM Italy 1Q FY23/24 ($bn – Bookrunner)2 #deals 1 CACIB 1.1 8 1 GS 2.8 1 MB 11 2 ISP 1.0 10 2 2.0 2 UBS 5 3 0.9 9 3 UBS
Slide 30: Demonstrating ability to navigate the market, with resilient M&A performance
…DEMONSTRATING ABILITY TO NAVIGATE THE MARKET, WITH A RESILIENT PERFORMANCE IN M&A… 3M/1Q24 Divisional results - CIB Section 3 Selected M&A Italian Large-Cap Transactions Pending Pending Pending July 2023 MB deal flow proved to be resilient with 30 transactions Undisclosed Undisclosed c.€210m (100%
Slide 31: As well as in capital markets and lending
…AS WELL AS IN CAPITAL MARKETS AND LENDING 3M/1Q24 Divisional results - CIB Section 3 Selected ECM Transactions Mediobanca acted as joint bookrunner for the largest-ever reverse ABB to be carried out on the Italian market, which involved the RABB September 2023 June 2023 May 2023 May 2023 February 2
Slide 32: Consumer Finance: One Brand – One Culture strategic path in 1Q
CONSUMER FINANCE “ONE BRAND – ONE CULTURE” STRATEGIC PATH IN 1Q 3M/1Q24 Divisional results - CF Section 3 ✓ Leadership in term of new business, risk profile and sustainable high profitability ➢ Sound new business (€1.9bn in the quarter) with: ➢ repricing ongoing ➢ shifting toward more profitable pro
Slide 33: Consumer Finance: strong new business and asset quality normalizing
CONSUMER FINANCE STRONG NEW BUSINESS AND ASSET QUALITY NORMALIZING 3M/1Q24 Divisional results - CF Section 3 Financial results Highlights 1Q24 4Q23 1Q23 D D Solid start to FY24, with results confirming the value of €m proprietary distribution: Sept23 June23 Sept22 YoY1 QoQ1 Total income 286 282 276
Slide 34: Strategic distribution independence enhanced by proprietary and digital platforms
STRATEGIC DISTRIBUTION INDEPENDENCE ENHANCED BY PROPRIETARY AND DIGITAL PLATFORMS 3M/1Q24 Divisional results - CF Section 3 New personal loans by channel (3M, €bn) BNPL new business (3M, €m) 0.6 25% +5% YoY 23% 0.5 20% 0.8 0.9 0.8 0.4 17% 15% 15% 0.3 12% 11% 10% 81% 0.2 0.3 9% 78% +8% 8% 0.4 65% 0.3
Slide 35: Asset quality confirmed as healthy
ASSET QUALITY CONFIRMED AS HEALTHY 3M/1Q24 Divisional results - CF Section 3 promptly managed with prudent provisioning, leading to Expected modest increase in early risk indicators … a slight increase in CoR … Early deterioration index (3 months average) LLPs (€m) and cost of risk (bps) 80.0 120 20
Slide 36: Insurance: strong contribution
INSURANCE: STRONG CONTRIBUTION 3M/1Q24 Divisional results - INS Section 3 Financial results Highlights €m 1Q24 4Q23 1Q23 D D 1Q24 net profit at €137m, up 77% YoY due to: Sept23 June23 Sept22 YoY1 QoQ1 higher revenues (up 64% YoY) fostered by solid AG Total income 143 170 87 +64% -16% contribution, d
Slide 37: Holding functions – positive trend continuing
HOLDING FUNCTIONS – POSITIVE TREND CONTINUING 3M/1Q24 - Divisional results – HF Section 3 Financial results Highlights 1Q24 4Q23 1Q23 D D Positive bottom line: €19m net profit in 1Q24, reflecting: €m Sept23 June23 Sept22 YoY1 QoQ1 Revenues up 4x YoY, due to positive NII sensitivity to Total income 8
Slide 38: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 39: Closing remarks
CLOSING REMARKS Closing remarks Section 4 ON TRACK TO DELIVER OUR VISION OF MB: MORE CENTRED ON WEALTH MANAGEMENT… WM record revenues (~€220m) and net profit (~€50m) - €0.3bn liquidity events …WITH CIB CAPITAL-LIGHT AND SYNERGIC WITH WM… CIB RWAs down €2bn QoQ (34% of Group RWAs) and enhancement of
Slide 40: Mediobanca 3M/1Q24 Results as at September 2023
MEDIOBANCA 3M/1Q24 RESULTS AS AT 30 SEPTEMBER 2023 Milan, 26 October 2023
Slide 41: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 5. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 42: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 3M results as at September 2023 Annex 1Q24 4Q23 3Q23 2Q23 1Q23 D D €m Sept23 June23 Mar23 Dec22 Sept22 QoQ1 YoY1 Total income 864 887 759 902 757 -3% +14% Net interest income 496 502 456 447 396 -1% +25% Fee income 180 187 185 262 210 -4% -14% Net treasury income 48 33 24 84 65
Slide 43: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 3M results as at September 2023 Annex D D €bn Sept23 June23 Sept22 QoQ1 YoY1 Funding 60.2 60.5 60.3 -0% -0% Bonds 23.1 22.3 18.6 +4% +24% Direct deposits (retail&PB) 27.6 28.2 28.7 -2% -4% ECB 4.6 5.6 8.4 -17% -45% Others 4.9 4.5 4.5 +10% +9% Loans to customers 51.1 52.5 52.4 -3
Slide 44: Wealth Management results
WEALTH MANAGEMENT RESULTS 3M results as at September 2023 Annex 1Q24 4Q23 3Q23 2Q23 1Q23 D D €m Sept23 June23 Mar23 Dec22 Sept22 QoQ1 YoY1 Total income 218 207 206 209 199 +5% +10% Net interest income 107 96 93 88 84 +11% +28% Fee income 108 108 111 118 112 -0% -4% Net treasury income 2 2 2 3 2 +5%
Slide 45: Corporate & Investment Banking results
CORPORATE & INVESTMENT BANKING RESULTS 3M results as at September 2023 Annex 1Q24 4Q23 3Q23 2Q23 1Q23 D D €m Sept23 June23 Mar23 Dec22 Sept22 QoQ1 YoY1 Total income 142 148 135 248 182 -4% -22% Net interest income 75 79 74 68 67 -5% +13% Fee income 48 51 53 117 69 -6% -30% Net treasury income 19 18
Slide 46: Consumer Finance results
CONSUMER FINANCE RESULTS 3M results as at September 2023 Annex 1Q24 4Q23 3Q23 2Q23 1Q23 D D €m Sept23 June23 Mar23 Dec22 Sept22 QoQ1 YoY1 Total income 286 282 281 284 276 +2% +4% Net interest income 254 245 247 249 243 +3% +4% Fee income 33 37 34 35 33 -11% -1% Total costs (83) (96) (88) (86) (78) -
Slide 47: Insurance results
INSURANCE RESULTS 3M results as at September 2023 Annex 1Q24 4Q23 3Q23 2Q23 1Q23 D D €m Sept23 June23 Mar23 Dec22 Sept22 QoQ1 YoY1 Total income 143 170 95 111 87 -16% +64% Impairments (1) 5 9 (1) (11) Net profit 137 157 100 105 78 -13% 77% Book value (€bn) 4.3 4.2 2.9 3.0 3.3 +2% +31% Ass. Generali
Slide 48: Holding Functions results
HOLDING FUNCTIONS RESULTS 3M results as at September 2023 Annex 1Q24 4Q23 3Q23 2Q23 1Q23 D D €m Sept23 June23 Mar23 Dec22 Sept22 QoQ1 YoY1 Total income 80 90 49 62 19 -11% 4x Net interest income 53 77 36 35 (3) -32% n.m. Net treasury income 21 5 11 14 12 n.m. +74% Fee income 6 7 2 13 11 -17% -43% To
Slide 49: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking ESG Environmental, Social, Governance WB Wholesale banking FAs Financial Advisors FVOCI Fair Value to Other Comprehensive Income SF Specialty finance GOP Gross operating profit CF Consumer
Slide 50: 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 51: 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 Email: investor.relations@medio