Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — Q1 2022 Earnings Presentation

23 slides from Credito Emiliano's earnings presentation, 2022

  1. Slide 1: Group Results 1Q22

    yr S= GROUP RESULTS 1022

  2. Slide 2: 1Q22: Key Points

    1Q22: KEY POINTS LOANS GROWTH ASSET QUALITY NPL Ratio at 2.4%, almost in line with the EU Loans to customers at €32.8 billion, average (2.1%*) and well below the average of up by 10.5% YoY, more tha 5x the Italian Banking System (3.1%*) compared to the Industry (+2% YoY) 10.5% 3.1% 2.0% 2.4% 2.1% 1Q

  3. Slide 3: Business Diversification

    BUSINESS DIVERSIFICATION 0.7% 1.1% 1.4% 0.0% 12.1% 2.3% 1.0% 12.6% 11.0% 0.9% 38% 41% 35% 35% 36% 52% 58% 56% 52% 53% 1Q21 1H21 9M21 FY21 1Q22 Core NIM on Operating Income NII on Operating Income Income from Financial Activities on Operating Income Performance Fees on Operating Income The Group's bu

  4. Slide 4: A Growing Digital Approach

    A GROWING DIGITAL APPROACH 1 INTERNET BANKING RETAIL DIGITAL OPERATION: 4 • >723,488 contracts (+1.3% vs MIGRATION TREND Dec. ‘21) • +8% of online operations vs • As of March 2022, more than March 2021 93.5% of overall transactions made • Incidence on bank accounts at through digital channels (inter

  5. Slide 5: Key Results - Non-Financial Statement 2021

    KEY RESULTS- NON-FINANCIAL STATEMENT 2021 • Gender equality in the Board of Directors • The Group reduced the internal energy • Stakeholder engagement activities through consumption (-8.8% vs 2019) the related direct survey online (62,548, +140% vs 2019) emissions (-17.6%) and the indirect emissions

  6. Slide 6: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT • Excellent Revenues trend (+5.8% vs 1Q21), thanks not only to Δvs Δvs the consolidation of CR Cento, but also to the positive €/million 1Q21* 4Q21 1Q22 dynamics of the NII and fee components 1Q21 4Q21 • The trend in Operating Costs vs 1Q21 was affected by the Operating

  7. Slide 7: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) Net Interest Income (€/mln) Euribor and BTP/Bund spread 135 128 129 149 117 117 90 102 101 121 -0.54% -0.54% -0.55% -0.57% -0.53% 1Q21 2Q21 3Q21 4Q21 1Q22 3 months Euribor (avg) Spread BTP vs Bund 10 yrs (bps) 1Q21 2Q21 3Q21 4Q21 1Q22 7 Of which ECB depo -9.8 -11.7 -12.0 -1

  8. Slide 8: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) Loans to customers Deposit rate 2.25 2.21 2.19 2.17 2.14 0.48 0.47 0.45 0.45 0.44 1.56 1.56 1.53 1.51 1.53 0.04 0.04 0.04 0.04 0.04 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Credem: average loans rate Industry: average loans rate Credem: average deposit rate Industr

  9. Slide 9: Net Interest Income (3/3)

    NET INTEREST INCOME (3/3) Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 7,794 10,249 11,627 14,253 14,060 5.8 5.6 5.2 4.5 4.6 Ita Govies 1Q22 HTC 5.3 HTCS 0.3 45% 44% 40% 40% FVTPL 0.0 58% Total 5.6 1Q21 1H21 9M21 FY21 1Q22 4% 4% 4% 5% • After some profit taking at the beg

  10. Slide 10: Non Interest Margin

    NON INTEREST MARGIN Total*(€/mln) 218.3 187.4 182.3 252.4 226.1** Performance Fees 40.7 3.4 39.1 Income from Financial 6.9 3.0 61.7 Activities 56.8 51.0 53.6 59.2 Banking Fees 17.1 13.4 19.1 13.1 15.7 Insurance Income 101.5 104.7 93.7 112.0 111.8 Asset Management and Brokerage Fees 1Q21 2Q21 3Q21 4Q

  11. Slide 11: Operating Costs and D&A

    OPERATING COSTS AND D&A Operating costs* (€/mln) Employees 6,608 6,661 195 190 186 212 202 6,068 6,140 6,195 6,201 6,219 5,544 5,519 5,604 5,609 5,763 5,899 62 58 57 59 54 138 131 132 150 144 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 Financial Advisors 1Q21 2Q21 3Q21 4Q21 1Q22

  12. Slide 12: Loans to Customers

    LOANS TO CUSTOMERS Loans to customers Other Loans 10,053 10,146 8,578 9,017 9,786 Residential Mortgage 9,293 9,446 9,560 8,722 8,909 Leasing 3,031 2,996 2,852 2,924 2,940 Short-Term Loans 9,489 8,999 9,442 10,627 10,059 1Q21 1H21 9M21 2021 1Q22 Total (€/mln) 29,641 29,849 31,461 33,156 32,761 • Loan

  13. Slide 13: Loans: Comparison with the Industry

    LOANS: COMPARISON WITH THE INDUSTRY Loans to Customers growth* Market shares** evolution +10.5% YoY 2.11% 2.09% Industry Credem +74.5% 1.95% 1.89% 1.95% 1.79% 1.77% 1.66% 1.58% 1.48% 1.28% +2.0% YoY 1.20% MS on Performing Loans 1.16% 1.07% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

  14. Slide 14: Group Customers Funding: Net Inflows Breakdown

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN AUC Direct Deposits AUM + Insurance Total Net Inflows 1,233 945 697 573 564 193 245 285 155 41.0 58 Of which retail + private: -18 -28 -181 +712 mln -103 -74 -146 corporate: - 898 -226 mln -389 -394 1Q18 1Q19 1Q20 1Q21 1Q22 • Total production was positi

  15. Slide 15: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE Total funding Diretc deposits & retail bonds** €/mln 1Q21 4Q21 1Q22 Sight / Saving Depo. 31,347 33,641 33,240 Industry +6.1% YoY CD and Other Credem Deposits 887 932 962 +151% Direct Deposits 32,235 34,574 34,202 Wholesale Bonds* 2,603 2,508 3,108 +3.8% YoY Insurance Rese

  16. Slide 16: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES Issuances (€/mln) Maturities (€/mln) Covered Bond 100 + 750 Green Bond SP 500: SNP 750: CB Covered Bond Covered 1450 200: T2 Bond Green 500 SNP 107.5: Bond SP 1,250 T2 Tier 2 Tier 2 Tier 2 CRVita 750 750 CRBanca CRHolding CRVita 600 500 307.5 200 100 107.5 2019 2020 20

  17. Slide 17: Credit Quality: Gross NPL Ratio

    CREDIT QUALITY: GROSS NPL RATIO 900 2020 Gross Non Performing Loans (€/mln,%) 2021 600 445 398 391 387 378 378 1Q22 300 Bad Loans Disposal 53 43 37 ~41 mn 0 Gross Bad Loans Gross UTP Loans Gross Past Due Loans % on Loans (Credem) 1.5 1.2 1.2 1.3 1.2 1.1 0.2 0.1 0.1 % on Loans (Industry)* 2.5 1.8 2.6

  18. Slide 18: NPL: Coverage

    NPL: COVERAGE Addendum & Coverage incl. NPL (€/million) Gross Net Coverage Shortfall* Calendar Shortfall Bad Loans 391.1 98.5 74.81% 31.5 82.87% + Net NPL +373.7 - Shortfall -64.3 UTP Loans 387.4 245.8 36.55% 1.3 36.88% Total NPL 815.3 373.7 54.16% 30.0 34.3 62.06% = NPL Net of Shortfall 309.4 • Net

  19. Slide 19: Cost of Risk

    COST OF RISK 19 59 55 52 42 44 34 38 31 47 45 32 41 24 24 34 39 19 16 27 30 21 10 7 15 13 0 Figures in bps 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 Cost of risk Cost of risk (net of non-recurring events) • The annualized cost of risk was 0 bps, 70 62 59 thanks to the presence

  20. Slide 20: Assets & Liabilities

    ASSETS & LIABILITIES 33,156 32,761 Assets 2021 1Q22 • The securities portfolio remains stable in both the HTC and HTCS components 9,158 8,405 7,577 7,418 7,065 6,559 6,692 6,593 • Total Loans to customers reflects the usual seasonality of the first quarter • The increase in Due to banks is attributa

  21. Slide 21: Liquidity Ratios

    LIQUIDITY RATIOS NSFR LCR 141% 217% 137% 210% 205% 126% 2020 2021 1Q22E 2020 2021 1Q22 Loan to Deposit Ratio* 0.92 0.93 0.93 • Both LCR e NSFR ratios were well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies • ECB unencumbered

  22. Slide 22: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS Fully phased data Fully phased data Credem Group Credemholding €, million 2021 1Q22 2020 2021 1Q22 CET 1 2,868 2,747 2,340 2,591 2,487 Total Capital 3,169 2,948 2,746 2,993 2,832 Capital absorption from: 1,500 1,452 1,337 1,513 1,465 Credit and Counterparty 1,340 1,292 1,

  23. Slide 23: 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 2022 Earnings Presentation on 6ix